$62 Million Productivity Gain: Food Manufacturer Eliminates a Shift Through Time Studies and Process Optimization

Client Profile
A nationwide food manufacturer and distributor needed to increase production capacity while significantly reducing high labor costs across production and warehouse operations (shipping and receiving).

Challenge
The company faced rising production demands but was burdened by inefficient processes, excessive changeover times, idle time, and non-value-added activities. Leadership needed to establish accurate labor standards and optimize operations to support growth without proportional increases in headcount.

Approach
CapRock implemented a structured 9-point improvement program that included: - Detailed time and motion studies across production lines and warehouse functions - Documentation of current labor and process times - Identification of non-value-added activities and best practices - Development and implementation of new labor standards and streamlined work processes - Introduction of a performance management and coaching program

Results - Established accurate standard labor times and implemented coaching/reporting systems - Significantly reduced changeover times, delays, idle time, and non-value-added activities – Identified $62 million in productivity and capacity improvements over 18 months - Eliminated one full shift (moved from 3 shifts to 2) - Reduced headcount by 30% - Delivered ROI in less than 2 months

Key Outcome
By combining rigorous time studies with process redesign and performance management, the manufacturer dramatically increased capacity while substantially lowering labor costs.