How a packaging manufacturer increased $144k in factory capacity?
Where will we allocate the retrofit budget for our machines? This question had been asked over and over, every year by one of our customers, a major player in the packaging industry. Imagine the situation and even try to remember if it happens in your company: the CFO gathers 4 or 5 managers and launches this question in the room, projecting the budget for the following year. The industrial director made the same challenge with his factory management. And that's where the "opinion fight" begins. (We like to say that without data, you are just another person with an opinion). Each one brings his/her side, wanting the best for his/her line. But no one can prove why retrofit money should be allocated to a particular machine, since downtime and scrap data are difficult to gather without a proper system. So, did you identify yourself within the situation? In the past, the company used solve this situation in an unsatisfactory way: CFO, CEO and Industrial Director ended up dividing the retrofit budget into equal parts. This ends up not being an effective strategy, not even measurable in the medium term of the plant but at least it made everyone in the…
