Case Studies in World Class Manufacturing
Hagen solutions help world class manufacturing companies achieve their true profit potential without lengthy consulting engagements or capital spending. The following case studies are available that describe the application of our software, services, and methodology at major global corporations and in world class manufacturing environments:
Soup Canning
At a soup canning line in one of Europe’s largest food plants it was observed that underneath the filler sat a large pool of soup. An operator was washing it down the drain. The Plant Manager was asked what it was costing. “Nothing – we’re better than budget on that line.” “But what’s it really costing?” “I’ve no idea – I wouldn’t have a clue.” Hagen used True Opportunity™ and calculated the true cost. It’s $750,000 a year. “That’s outrageous,” says the Plant Manager, “I’d no idea it was that much.” Four weeks later the problem was corrected and $750,000 dropped to the bottom line. The Plant Manager pointed out “If you can’t see it, you won’t fix it. True Opportunity exposes all of this opportunity"
Yeast Manufacturing
The President of one of the world’s largest yeast makers had approved a $1 million purchase of a new separator to get an 11% increase in output from their Californian plant. Before he gave final approval for the expediture, he brought in Hagen. Hagen taught his team to use True Opportunity™ and the Hagen methodology and the team was able to get a 25% increase from the existing equipment. The President commented "We thought we understood our processes completely. We did not". It turned out that this was true everywhere – in fermentation, separation, drying and packaging. And it was true in every plant. They used the Hagen tools to increase profits by 60% in 18 months.The President noted "It completely changed the way we thought about the business.”
Membrane Manufacturing
A German company that makes membranes for dialysis machines was dealing with heavy competition that threatened its future. The company responded by making a major breakthrough in membrane technology. This required them to make seven-kilometer lengths of membrane the diameter of a human hair, with no leaks. Unfortunately it proved impossible to manufacture. After two years of trying, no one believed the new technology could work. The business started to lose money, and faced closure. The team then used Hagen's tools. Over a four-month period every significant problem was eliminated with their new technology. Orders exploded, and the profitability of the business was transformed. The company went on to dominate its market.
Food
A $200 million food company was struggling to make money. Heavy pressure from their customers – supermarkets and a major fast-food chain – had eroded margins. Everyone blamed market conditions. “We’ve cut our costs to the bone” said the CEO “It’s just a brutal market place.” They used True Opportunity™ and Hagen's tools, against a background of near-total disbelief. “What can Hagen's tools do that we can’t do ourselves?” they wanted to know. First, output started to climb, up some 60%. Then waste fell, down 70%. They received KFC’s prestigious ‘Golden Rooster’ award, the first time this had been awarded to a supplier. “We were doing things no-one believed possible” noted the CEO. “We barely believed it ourselves.” Within 12 months they doubled profits, from $5 million a year to $10 million. “True Opportunity and CFA lets you change what you believe possible, by showing you a better way to think. I don’t know how else to do that.” observed the CEO.
Pharmaceuticals
The management team at a European Ibuprofen plant had spent 18 months and $500,000 of capital and achieved 1½% increase in output from a complex crystallization plant. The same team then used Hagen's tools. They achieved a 53% increase in output in 5 weeks. This created $3 million a year of extra profits. The Design Engineer said: “We found we could cut 286 minutes from a 606 minute cycle time. I’ve never seen anything like it. I designed and built the plant, yet using Hagen's tools it became quite clear to me that I did not truly understand the process. The Hagen tools are absolutely vital for people like me.”
Aerosol Can Manufacturing
The plant
had spent two years trying to respond to a request from their largest customer to increase the liner thickness to 60 microns. The team had concluded that it was impossible to get more than 30 microns using their existing technology. Trying to exceed 30 microns was costing them $1 million a year in scrap. The customer said that if they achieved 60 microns they would triple volumes. If they did not, they would remove all their volume. This would have lead to the closure of the business. The team then used Hagen's tools. They were able to get not 60 but 80 microns. The $1 million of scrap was eliminated. The extra volume was secured, and profits tripled. The business went on to become the dominant supplier in its region, exploiting its new capability.
Brewing
A major brewer had been given two fillers, worth $2 million, by a supplier, a leading maker of filling equipment. Why? Because it proved impossible to fill the bottles to the required level. As a result they ran at 800 bottles a minute, compared to a design speed of 1000. Worse, they were scrapping $1 million a year of low-filled bottles. Everyone had looked at ‘low fills’, but to no avail. It was just one of those things. Then the team used Hagen's tools. Within two months they had entirely eliminated the problem. $1 million a year of rejects was saved. Filler speed was increased to 1000 bpm, and then to 1200 bpm. The Chief Executive commented: “We discovered not only how to get rid of low fills, but also how to overcome the flaws in our thought process that prevented us doing so years ago. It was eye-opening to discover how much we could all improve our thinking.”
Packaging
When asked about the amount of opportunity that existed in his business, the CEO of a $300 million packaging business stated “I believed we might find another $500,000 or $1 million in extra profits. Using True Opportunity™ we found a staggering $67 million of opportunity. Of this, our people put $10 million a year on the bottom-line – a 67% increase in profits - in ten months. “Then it occurred to me that our competitors have no more idea of their hidden opportunity than we did. In our industry businesses sell for fifteen times earnings. So we can pick up a business making $10 million a year for $150 million. But with True Opportunity™ we can turn that $10 million into $15 million or $20 million a year. We can create hundreds of millions of dollars of shareholder value. We can reshape our industry.”
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