MGM World of Wine

Lean world Class® to increase productivity, flexibility and market response time | Case Study

MGM World of Wine

Lean world Class® to increase productivity, flexibility and market response time | Case Study

Scenario

MGM World of Wine is a group of companies that produces and markets wines, which has grown to become one of the top 20 Italian companies in the wine sector according to Mediobanca's ranking.

How do we manage to remain competitive in a global and fierce market where costs are rising, margins are falling, global competitors are investing much more in research and development, customs are changing, and eating habits are also changing?

This was answered by our intervention Lean World Class® to improve productivity, flexibility and response time to the market.

Areas of intervention

The intervention focused on the following areas:

Production:

  • Launching TPM Pillar training programs for production resources to enable systematic collection, analysis, and attack of leaks by going back to the root causes of the problem through daily and weekly flash meetings
  • Implementation of the Pillars of TPM to reduce the changeover time of packaging lines, reduce major micro stops and increase the "active" production time of lines.
  • Implementation of the Pillars of Autonomous Maintenance (delegation of minor maintenance, tidiness and cleanliness of facilities and workstations) and a preventive maintenance system for machines.

People and Organization:
The focus has been in ferrying the facility toward a teamwork approach and to enhance the skills present in the company through:

  • Business climate analysis
  • Organizational development that led to the change of the corporate organizational chart
  • Enhancement of internal talents through individual coaching
  • Implementation of the Sales&Operations Planning model to reconcile market demand with production constraints and logic and to share rules of operation and coordination among the various entities: Sales, Planning, Production and Logistics
  • The production model that meets the different service levels expected by the market was defined for each product.

Planning and logistics:

  • Introduction of Lean logic on production management and planning processes
  • Defining parameterization on SAP to effectively manage material procurement
  • Introduction of dashboards and indicators for monitoring business performance.

Results


The goals achieved by the team, in terms of KPIs, were:

  • Increased productivity of 37%
  • Increase in volumes produced (pcs/day) by 20%
  • 17% increase in OEE on critical lines.
  • Achievement of an On Time Delivery value > 95%
  • Reduction of finished goods inventory of 10%
  • Involvement of at least 70% of company resources in training plans

The main results obtained on People and Organization:

  • Increased Leadership of Managers and Executives
  • Improved business climate and performance of work teams
  • Enhancement of personal capabilities
  • Involvement and proactivity of all resources
  • Identification of a new organizational structure with a clear definition of roles and tasks
  • Standardized processes and integrated information (ERP, CRM, MES)

Main objectives achieved

+37%

INCREASED PRODUCTIVITY

70%

RESOURCES INVOLVED IN TRAINING ACTIVITIES

95%

ON TIME DELIVERY