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The McTavish Company
The McTavish Company
Lean Manufacturing at the McTavish Company
The McTavish Company, Inc. located in Portland, Oregon, manufactures a variety of premium quality traditional shortbread cookies that are sold nationwide. The company was founded in 1987, purchased in 1993 by the present owners Bill and Denise Pratt, and currently has 10 employees.
Situation
The McTavish Company owners decided to work with the Oregon Manufacturing Extension Partnership (OMEP), a NIST MEP network affiliate, to help them to better understand their current operation to proactively and strategically address the perceived physical plant constraints and operational challenges of trying to grow the business and support stronger financial performance. The company wanted to prepare for sales in excess of 100% of their most recent peak sales period with little or no capital investment. The company's identified opportunities for growth were through new accounts with large retail chains, but the company did not have the extensive documented advanced food safety, quality and manufacturing systems the new customers required as a prerequisite for their business.
Solution
OMEP did a Value Stream Map identifying capacity constraints to achieve the future state goal of 100% increase in sales volume. Cycle time constraints were found in the cookie dipping and packaging areas. A new tempering machine was selected that would cut the cycle time in half, improve quality, and provide flexibility to use a wide variety of coatings not currently possible.
The packaging area was redesigned into a cell that utilized one-piece flow and point-of-use supplies while reducing cycle time by 73%. Valuable floor space was freed up and the capacity was increased to support a 100% increase in sale eliminating the cost of a larger facility.
OMEP performed a food safety and quality systems analysis to identify which programs were required to pursue new business. OMEP worked with the company to develop and implement a current Good Manufacturing Practices (GMP) program, a Hazard Analysis Critical Control Point (HACCP) program, and prepared the company for the American Institute of Baking (AIB) food safety audit.
Results
- Workforce training and skills investment; $7,000.
- Jobs retained; 10.
Jobs created; 5. - Reduced packaging cycle time by 73% through one-piece flow and point-of-use of packaging supplies and dipping cycle time by 50%; $90,000 cost savings.
- New equipment investment (Tempering Unit & Metal Detector); $11,000.
- Developed and implemented cGMP and HACCP programs to situate company to attract new business from customers requiring advanced food safety programs; increased sales of $500,000.
- Cost avoidance of $650,000 by not relocating to larger facility.
Testimonial
Before OMEP came in we were considering the need to move to a larger facility in order to handle the business growth that we were planning. Although, we were planning on a 100% growth in the 4th quarter, we did not have a clear picture of what that would look like in our production room. OMEP first came in and gave us an overview of our entire production facility. We were surprised at how fast they were able to assess our current situation. With the education and guidance that we have received from them we have been able to streamline procedures, have a clear plan for which capital investments will make the most difference in throughput, and discovered that our current building has adequate room for our initial phase of growth. Just these things have saved us a great deal of time and possible capital expenditures. On top of that Bill Paugh, our OMEP consultant, has given us a lot of extra insight into the baking industry and has facilitated our documented food safety, and quality programs, thereby increasing our probability of increased business with larger retail customers.
— Denise Pratt, CEO
