How to get more out of your factories
In factories around the world, machines lie silent. Even machines that cost millions and work perfectly, remain idle. Why? Because they don’t have the capability to produce the company’s latest innovation. Instead, fresh investments of time and money are being made in new equipment, for innovations that may or may not succeed in the marketplace.
Underutilisation is a big problem for any manufacturing company. And with factory utilisation rates typically hovering around 80%, it’s clear that the average business has plenty of room for improvement.
Happen’s unique Asset-Out innovation approach is designed to harness this unused potential for innovation, by identifying what product features your production assets can create, we find ways to meet consumer demand with minimal new investment.
Asset-Out breathes life into underused assets, making better use of your existing capacity. It also helps manufacturers to map out what their production assets can and can’t deliver, so they can make better informed decisions on future investments.
Wilbur Strickland, VP of chocolate R&D at Mondelez, says: “To make chocolate bars at the scale we do takes tens of millions of dollars of equipment. When you’ve made that kind of investment, you don’t want to throw it out and start again when you come up with something new.”
Clients often surprise themselves with the ideas that arise from using the Asset-Out approach. Karina Mikkelsen, head of product technology development at Arla Foods, says that studying the supply chain actually improved the quality of the ideas that came out of the innovation sessions. The company went on to launch the highly successful B.O.B Milk – recently named Product of the Year in its category.
So instead of looking at underused production assets as a problem that cuts into profits, why not look at them as an opportunity to fuel growth? It’s a way of thinking that has already helped big names such as Mondelez, Arla, Glenfiddich and Omega Pharma to get successful innovations to market twice as fast – with less cost, and less risk.