Polish vodka producer exceeds OEE targets with rapid best practice deployment

Executive summary

Having identified some improvement obstacles that made it difficult to compete on an equal footing, Polish vodka producer CEDC introduced a rapid best practice deployment in partnership with CCi (Competitive Capabilities International). Notable improvements included an 18.5% OEE improvement within a three-month period, a significant drop in production costs and a reduction of speed losses.

RESULTS
  • OEE increased from 42% to 60.5% on Line 4
  • The project reduced production cost of two major SKUs by 30,000 PLN per month
  • Total cost reduction is estimated at 50,000 PLN per month
Challenges

At the start of 2016, Polish vodka producer Central European Distribution Corporation (CEDC) International realized that in order to compete on an equal footing with its major competitors, it had to improve its manufacturing efficiency. Low employee engagement, moderate and reactive safety and health performance, lack of capacity planning, and quality were some of the aspects identified as improvement obstacles.

Solution

In consultation with the CCi team, site leadership decided that for continuous improvement to gain traction, they would implement a rapid deployment project to achieve quick wins. The aim of the project was to increase Overall Equipment Effectiveness (OEE) from 42% to 57% over a 12-week period. Line 4 at the Oborniki plant was selected as the pilot line.

 

The aim of the project was to increase Overall Equipment Effectiveness (OEE) from 42% to 57% over a 12-week period.

 

To get the implementation process going, an in-depth performance and best practice assessment was conducted to establish the baseline maturity of the plant. Based on the outcomes of this assessment, plant management — supported by the CCi team — formulated a rapid deployment approach to best practice implementation.

Following a loss and waste analysis conducted by the Executive Leadership Committee and Site Steering Committee, the following profit improvement projects (PIPs) were identified:

  • Changeover processes and tools
  • Establishing a short-interval control and root cause problem-solving discipline
  • Establishing daily operations review (at shift and production multidisciplinary team level)
  • Supervisory administration
  • Planning rules: shift-to-shift allocation, planning standards

Project champions were allocated for each PIP to initiate each project and take accountability for achieving the improvement targets. A lean leader to take overall responsibility was also appointed. All projects were measured in terms of work content to define the number of team members for each.

PIP teams were trained on how to do a loss and waste analysis on the pilot line, which helped engage the employees as they themselves discovered improvement opportunities. Through the CCi-facilitated approach, balanced KPIs were identified and defined for the operational line team.

All the relevant information pertaining to the rapid deployment project was visually displayed in A3 format so that all employees could track the progress.

Results

Quantified improvements exceeded expectations:

  • After 12 weeks of rapid deployment, OEE increased from 42% to 60.5% (3.5% above target) on Line 4
  • The project reduced production cost of two major SKUs by 30,000 PLN per month
  • Total cost reduction is estimated at 50,000 PLN per month, amounting to 600,000 PLN per annum
Company Background

CEDC International is one of the largest vodka producers and alcohol distributors. In Poland, CEDC offers well-known alcohol brands such as Żubrówka, Bols Platinum and Soplica among vodkas; Carlo Rossi and Barefoot wines and colored alcohols, such as Metaxa and Jägermeister. CEDC currently employees about 1,400 people in Poland and has been part of the Maspex Group since 2022.

Disclaimer:

This resource has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained herein without obtaining specific professional advice. Competitive Capabilities International (CCi) does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this resource or for any decision based on it.