CMB

CHALLENGE

The merger of Carnaud and Metal Box—two large independent publicly traded packaging manufacturing companies—was not reaching the cost reduction and profit improvement goals predicted before the merger. Several divisions were notably underperforming on cost and profitability, and dragging down group results.

SOLUTION

Analyze the plants of the underperforming divisions individually and as a network, and build an improvement strategy optimizing the network and improving the internal performance of the plants.

• In the North American network, recommended closing one plant and cancelled construction of another.
• Improved the performance of consolidated plants sufficient to absorb all work, increase productivity dramatically, and reduce lead-time to customers
• In Europe, consolidated two plants in Italy into the one newer facility
• In the UK, built turn around plans for two manufacturing plants which returned them to profitability

IMPLEMENTATION

Analyzing and executing the network changes and the productivity improvement initiatives was accomplished over a one-year period. Result was a lower fixed and operating costs across the network.

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