Article: Tiense Suiker (Sugar Refinery Group)
Stronger by specialization
This sugar refinery has guaranteed its perspectives by focused investments in the packaging departments and by reorganisation of the management.
A number of years ago, the management team made a rational analysis of the possible future of the packaging department. It appeared that survival opportunities were low, due to regulation measures of the EU : quota for the farmers, more rules on food-safety and price setting for the sugar producers. On top of that came lower volumes as a result of lower sugar consumption at the end-customer. Sales to sugar-using food industry could not balance the previous factors.
“The out-of-date packaging machinery was our own weak point. Without changes, the future of our packaging department looked bleak. Together with Stanwick Management Consultants we reviewed the facts and from this study it appeared we had to specialize in a number of product groups, like sugar cubes. We decided to invest in such machinery”, says Dirk Ruytens during the “Industrie Atelier” event in Tiense Suiker Best Pack. The strategic analysis focused mainly on Sales and Marketing, the position of market leadership in combination with strict cost control was chosen. Also efficiency of the packaging department was scrutinized, with the help of Stanwick.
Our approach: involve the workforce
Karine Roodhooft, partner of Stanwick Management Consultants: “From early on in the project we involved the workforce of the factory. This we did for 2 main reasons: on the one hand, we learn the workforce to use improvement tools and methodologies. Our assignment is temporary and the customer’s workforce should be able to use our methodologies also in the future. On the other hand, acceptance of conclusions of analysis is much better if workforce has its say during the analysis. We coached a number of improvement tools, like Value Stream Mapping and Spaghetti diagrams. Together with management and workforce we got a fresh view on the potential for improvement. It appeared that a profound re-layout of the factory was key. More preventive maintenance was another highlight. And a number of operational changes had to take place; the packaging department could function with 25% less workforce”.
Dirk Ruytens: “This plan was called “BestPack” and comprised re-structuring (and bridge retirement). BestPack initiated intensive training programs and an investment of 13,5 mio €.
Management structure shaken
While BestPack was put on track, also management structure of the company was optimized. Dirk Ruytings : “In the past, the factory comprised 3 rather independent departments: preparation, crystallizing and packaging. Now these are all under one production manager. This way, team work and flow of knowledge were enhanced. Roles and responsibilities were reviewed, with special attention for grey zones; who is responsible for release? Who is responsible for spare parts? This review and structural team meetings, resulted in a better way of working together, fast decision taking and improved flow of information”.
“Stanwick also helped the renewed management with improving the necessary management skills. We used tools like Myers-Briggs Type Indicator (MBTI) and 360° feedback”, says Karine Roodhooft. The main conclusion in her view is that success becomes reality if you give the opportunity to local managers of an international group to build their own perspective of the future.
