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Value Chain Analysis of Production

Stoke Consulting - Stoke Consulting - Value Chain Analysis of Production | Business Planning | Process Development | Management Consultants

We were engaged by the second-generation family business that produces, processes and trades protein products for the retail market. Our client wanted to identify where value was being both created and destroyed within its internal integrated value chain. They needed our help to then take appropriate actions to improve the process.

Problems

The client lacked systematic planning across the value chain, with each production process operating in isolation and pushing product through to the next step. We conducted a value chain audit and identified many efficiency opportunities, which we quantified by value, cost, and risk. The selling price per output type had high variation but was not a driver of production. We quickly identified five key imperatives.

Solution

Implementation plan for handling materials developedProduction planning processes initiatedProcess improvement identified and actions createdPeople management implementation plan developed Plant management implementation plan developed

Outcomes

We identified and presented financial benefits that exceeded 5% of the client’s sales volume. Based on our implementation plans, the client made changes to its organisational structure, position descriptions, and job goals. This led to the appointment of new leaders in some roles. The implementation of these changes was carried out by the client.