CHINA – Tetra Pak claims to have cut the operational expenses of Bright Dairy – one of China’s largest dairy producers and brand owners – by more than 10% through a consulting service that aims to reduce labour, maintenance and utility costs.
The programme – Operational Cost Reduction (OCR) – was set up by Tetra Pak at Bright Dairy’s Fengxian factory, and involved employees engaged directly in ‘Focused Improvement’ (OCR-FI) group activities analyzing cost and loss, how to reduce costs, and setting cost reduction goals in the brand owner’s filling operation.
In the second stage of the program – ‘Continuous Improvement’ (OCR-CI) – Tetra Pak and Bright Dairy moved on between 2009 and 2010 to explore ways to further improve long-term operational costs, enhance cooperation within the company and to ensure that OCR delivered lasting, positive change.
To achieve this, the programme team collected data and analysis to indentify areas to reduce operational cost, such as extending production time, cutting overfilling and unrecorded waste.
Waste reduction actions included water flush control for pasteurisation, more accurate raw milk reception, optimised milk recycling procedures, air push devices for UHT processing and overfilling reduction —which Tetra Pak claims led to a reduction of product waste of more than 24%.
In addition, Tetra Pak provided a cost reduction methodology and coaching to Bright employees so they can carry on implementing the programme independently.
“With the OCR programme, Bright Dairy has harvested not just money, but more importantly, successful management concepts and methods. It is unique in ensuring our long-term sustainability,” said Zhang Fuhua, vice president of Bright Dairy.
After the success of the OCR program in the Fengxian factory, the consulting service has been rolled out to other Bright facilities in the region and other departments within the company.