Case: Green Leaf

Green Leaf

Green Leaf Corp, is a leading multinational company specializing in consumer products and manufacturing. Established in 1998, Green Leaf operates under a diverse portfolio of brands including SeaVitamix, Venus, Beauty's, CaribShine and others. Sales volumes for the year: over 100 million USD. The company has expansive production facilities in different countries with more than 10,000 dedicated employees, Green Leaf is committed to delivering innovative products and maintaining high standards across its production lines.

"Total production costs decreased by 33%, the level of waste decreased by 47%, and the percentage of defects decreased by 26%, the volume of production and sales increased by 370%." M. Loyko, Deputy General Director.

THE CHALLENGE:

The primary focus of Green Leaf Corp was to optimize its production processes. This involves implementing strategic improvements across its global facilities to enhance efficiency, reduce waste, and ensure consistent high quality across all product lines.

THE SOLUTION:

We conducted operational and financial analysis and found that both fixed and variable costs were disproportionately high, far exceeding industry standards. Further analysis showed that the financial model is such that increasing orders will increase the loss. The two largest expenses - raw materials and labor costs - are also too high.

To eliminate the identified problems, a program was drawn up to change regulations: transfer of raw materials and supplies to production, incoming control, document flow in the “purchase - warehouse - workshop - warehouse” circuit, adjustments to the staffing table, work to eliminate waste and defects and other work.

RESULTS:

Based on the results of the anti-crisis program, the following results were achieved:

total production costs decreased by 33%, the level of waste decreased by 47%, and the percentage of defects decreased by 26%, the volume of production and sales increased by 370%.

Thus, reducing costs after optimizing processes and costs led to a reduction in variable costs, an increase in marginal profit and the break-even point was reached and entry into the profit zone, management received an accurate current financial picture, areas and causes of losses were identified, standards and metrics for an effective organization were calculated work, and an action plan to increase profits.

Case: Green Leaf

Green Leaf

THE CHALLENGE:

THE SOLUTION:

RESULTS:

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