Operational Cost Improvement – Lean Six Sigma Methodologies Identify $1.0M of EBITDA Savings

TriVista identified over $1.0 million of EBITDA savings for a leading printing and packaging company.

The Challenge

A private equity backed custom printing and plastic packaging company was facing challenges attributed to a series of recent acquisitions, along with a sub-optimized inventory management and forecasting process. Despite a dramatic increase in sales over the past three years, the client struggled to realize full profit potential. The bottom line EBITDA savings did not track relative to the increase in sales. Confronted with eroding EBITDA margins and annual supply chain price increases, the client turned to TriVista to identify cost savings and operational performance improvements in their manufacturing, supply chain, sales and order planning process (S&OP), and overall operational strategy.

Our Approach

TriVista’s team of experts applied Lean Six Sigma methodologies to evaluate the manufacturing process, utilizing tools such as Pareto charts, DMAIC (Define, Measure, Analyze, Improve, Control) principles, employee interviews, value stream maps and spaghetti diagrams. Once a clear picture of the client’s current operating status was established, TriVista’s team proceeded with an in-depth diagnostic evaluation focused on:

• Sales & Operations Planning (S&OP)
• Inventory Analysis Management, and Strategy
• Procurement
• Operational Performance
• Forecasting

Upon completion of the analysis, TriVista presented the findings to the CEO and Business Operations Department with detailed suggestions on improvement opportunities and a clear roadmap for implementation.

The Results

TriVista’s client was extremely pleased with the outcome. Our team identified sub-optimized processes, found ways to reduce set up times, and upgrade materials to reduce quality issues. In the factory, improvements in cleanliness, inventory policy, and production process estimates were identified that would drastically reduce waste and increase efficiencies. Collectively, our team was able to identify approximately $1.0M of EBITDA savings that could be implemented within a six month time-frame.