CASE STUDY

Manufacturing Analytics Solutions Enabled F&B Manufacturer Stabilize Profit Margins

Jul 11, 2022

Highlights of the Case Study: 

Particulars Description 
Client A major UK-based food and beverage manufacturer partnered with Quantzig for its manufacturing analytics solutions to increase turnover and stabilize profit margins. 
Business Challenge The client runs its plant 24/7 to meet the increasing market demand and stay ahead of the competition. This called for regular upkeep to ensure that the equipment used in the production lines delivered optimum results with negligible waste. 
Impact Quantzig helped the client successfully eliminate waste accumulation from its manufacturing facility. The client also implemented our manufacturing and predictive analytics framework in another five manufacturing plants.  

Game-Changing Solutions for the F&B Manufacturing Industry 

Inflationary shocks continue to dent the profit margin in the highly competitive food and beverage industry. Manufacturers in the industry encounter several challenges, including supply shocks, surging input prices, and the uncertainties caused by the pandemic. To stay competitive in this ever-demanding industry, manufacturers need to optimize their production lines. However, waste reduction is a significant pain point for companies trying to optimize their production lines. F&B companies can overcome this challenge by leveraging advanced manufacturing operations management solutions that enhance the efficiency of production lines.  

Quantzig’s manufacturing operation management solutions and industry expertise can assist F&B players by providing insights into the amount of residue stuck in the pipelines. In addition, the solution assists in the recovery and reprocessing of the waste by identifying the areas of maximum waste accumulation. 

The Challenges of the Manufacturing Client 

A major UK-based food and beverage manufacturer partnered with Quantzig for its manufacturing analytics solutions. The client wanted to identify the inefficiencies in the production process and minimize waste accumulation in the production line. More importantly, the client wanted to increase the turnover and stabilize the profit margin. 

The client’s manufacturing plants run 24/7 to cater to the rising market demand and also to stay ahead of the competition. This necessitated regular upkeep to ensure that the equipment used in the production lines delivered optimum results with negligible waste. Quantzig’s operation management solutions helped identify critical areas of equipment failures before the plant ran into a technical failure, keeping the bulk residual wastage in check.  

Manufacturing Operations Analytics Solutions 

Changeovers became frequent as the client’s production facilities ran multiple products per assembly line. Quantzig’s manufacturing operation analytics solutions identified a lot of wastage due to assembly line changeover. The team then set about to put an optimized process in place that helped minimize wastage. This helped the client recover the residue and minimized waste accumulation significantly. Additionally, the recovered waste was saleable and could be processed further. Our operational analytics solutions further predicted the possible process pipelines where residual liquid could be trapped. Industrial sludge and wastewater account for a significant portion of manufacturing waste streams. The percentage of these elements can be reduced by minimizing water usage in the operations. This can be achieved by using chemical drying agents, reverse osmosis, dry machining, or a membrane biological reactor. Our operations analytics team worked with our client to create the most suitable solutions for our client, which helped our client take proactive preventive actions beforehand. 

Impact Analysis of Quantzig’s Manufacturing Analytics Solutions  

Quantzig’s manufacturing analytics framework helped our client achieve the following benefits: 

  • Rise in annual turnover by 15% without compromising the cost structure 
  • Increase in profit margin after factoring in the overhead, input, and other costs 
  • Decrease in client’s carbon emissions, a major step forward in its commitment to sustainable production 
  • Rise in per-consumer revenue in an otherwise highly competitive environment 
  • Increase in market share by catering to the demand faster than competitors 

As a result of this collaboration, our client successfully eliminated waste accumulation from its manufacturing facility. The client also implemented our manufacturing and predictive analytics framework in five other manufacturing plants.

Manufacturing Analytic Solutions
  • Increase in market share by catering to the demand faster than the competitors 100% 100%
  • Rise in per consumer revenue in an otherwise highly competitive environment 100% 100%
  • Increase in profit margin after factoring in the overhead, input, and other costs 100% 100%
  • Reduced carbon emissions: moving forward towards sustainable production 100% 100%
  • Rise in annual turnover by 15% without compromising on the cost structure 100% 100%

Key Outcomes 

Manufacturing operations analytics solutions are essential for manufacturers to ensure efficiency and reduce wastage in the production lines. These solutions also make it possible for manufacturers to sort, recover, and reuse raw materials and by-products etc. and add them to the value chain. A systematic process also enables the inclusion of preventative maintenance protocols to be implemented, which, in turn, helps to check machinery downtime and un-planned expenditures incurred due to repairs and replacement of machinery components. 

Planned and systematic incorporation of all of the above factors in the manufacturing process can lead the client to achieving higher turnovers and improve profit margins significantly. Therefore, most players in the manufacturing industry are relying on operations analytics solutions to discover and identify patterns that will help improve processes and identify variables that affect product quality, volume, or consistency. 

A Broad Perspective on the role of Operations Analytics Solutions in the Manufacturing Sector: 

Manufacturers need to function in a highly competitive environment where they need to juggle and balance quite a few variables such as raw materials, machinery, products, operators, delivery timelines, and environmental factors.  They need to manage all these fronts with the aim to consistently reduce costs and downtime while maintaining or improving product quality. Quantzig offers manufacturing analytics solutions that enable the manufacturer clients to optimize their production processes and positively impact profit margins and remain competitive in the market.  

Key Takeaways 

  • Developed an optimum production plan 
  • Increased margins 
  • Reduced wastage 
  • Minimized downtime 
  • Improved inventory management

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