Redesigning Core Business Processes

(Case history)

The Challenge

Johnsonville Foods, a leading national specialty meats company wanted to revamp the core meat processing and packaging operations to:

• Handle seasonal variations effectively

• Develop major process improvements

• Reduce operating costs

• Increase facility utilization

• Postpone new facility investment

They had discussed a number of options over the previous years and had reached a stalemate, unable to achieve a consensus on how to proceed.

Project Approach

The Cumberland Critical Process Redesign project approach was chosen to provide an effective structure for this important, cross-functional project.

The senior operations executive assumed ownership of the project. A clear project scope and goals were defined to guide the team selection and subsequent project work. Team members recruited included production team leaders, supervisors, materials manager, cost accountants, schedulers, production engineer, quality assurance manager.

The Critical Process Redesign method provided a comfortable and effective structure for the team’s project work:

• Training in process analysis and improvement methods

• Team development steps to increase their interpersonal effectiveness

• Comprehensive project plan for a quick launch of project work

• Expert project management assistance and work session facilitation

• Specialized consulting as required

The project team brought a strong sense of urgency and commitment to the project and spent 20% to 30% time on assignment over a four month period.

Results

The project team and their operating department partners developed process changes that were implemented during the six months following the busy-season production schedule.

Specific improvements and benefits were:

• $8 million per year cost savings

• $22 potential cost savings identified

• $10 million capital investment postponed

• Increased capacity during peak periods

• Replaced several ineffective, old operating paradigms

The project team surprised itself with results that surpassed the stretch goals set by the project owner. Their hard work and persistence really paid off.

Keys To Success

“Management by facts” is a hallmark of the Critical Process Redesign method. Most teams say its comprehensive structure saves them weeks of wheel-spinning at the front end, but it’s the complete project “picture” that helps them reach consensus on the important issues.