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Improvement Toolkit / Run Strategy Development

A businesses run strategy is the amount, the frequency, the sequence, and on which assets it decides to produce the goods which it then sells.  This then impacts the required stock holding to ensure an acceptable timeframe for responding to customer orders.

Run Strategy Development is a 3-step process which analyses the existing run strategy, and optimises it to ensure the costs are minimised to achieve the same level (or improved) levels of customer service.

Step 1
Understand the current run strategy, and impacts on customer service, and minimise the current cost of changeovers by optimising the sequence, and moving to a fixed cycle if appropriate.

Step 2
Move to the current optimum position by balancing the cost of changeovers against the cost of holding stock, and realising any opportunities for working capital reduction from over-stocking opportunities

Step 3
Drive towards lower stock holding by reducing changeover time and cost – as the changeover time reduces, so the balance point between cost of holding stock and cost of changeovers changes.  As long as step 1 has been completed properly, step 3 will lead to yet more (but faster) changeovers, and reduced working capital.

If you would like to find out whether RSD could help your business, contact us for further information.

 

 

 

Testimonials

This is the best I’ve seen this line run…I never thought we’d be able to get it up to this speed.

Operator – Bakery

Inspiring the people in our business to understand how they can improve and the business can therefore develop, is an important building block in our drive for improving efficiency within our business. Engaging everyone in the business to realise that we can be better and any little improvement drives down to the bottom line. This has been seen both in the way the staff have engaged and enjoyed the experience and the evidence of reduced costs has helped the business to become more efficient. This process never stops but it is the tools that have been developed by LI Europe that has allowed us to deliver this important work at both our potato pack houses.

Fraser Scott, Head of Farming Operations Arable/Potatoes