Case Study|Food & Beverage

A global nutrition company drove OEE from 71% to 95% and pulled $2.36M out of conversion costs in seven months, by building the operating system that turned firefighting into reliability.

Global Nutrition Company
Results at a Glance
$2.36M
Conversion Cost Reduction
71% to 95%
OEE
19.8%
Production Increase
Executive Brief

Two years before the engagement, a turbulent stretch of retirements and attrition stripped decades of tribal knowledge from one major facility, leaving startup and shutdown undocumented, supervisors untrained, and a new plant manager still learning the organization. The numbers told the story: OEE averaged just 71% over the prior twelve months, only 557 preventive-maintenance tasks existed for 2,314 assets, maintenance ran a 70% break-in rate, and product quality claims averaged $232,000 a month. POWERS installed a full Management Operating System across production and maintenance, pairing frontline tools like the Daily Weekly Operating Report, tiered meetings, and short-interval control with a complete maintenance planning, scheduling, and kitting process, contractor accountability, and root cause analysis, then coached supervisors out of firefighting and into proactive problem-solving. Over seven months, OEE climbed from 71% to 95%, production rose 19.8%, conversion costs fell $2.36 million, and the total annualized savings impact topped $5 million.

Equipment Reliability · Frontline Leadership · MOS
The Situation

A facility that had lost the people who knew how it ran, then lost the visibility and the leadership routines that might have replaced them.

Two years before the engagement, a turbulent period of retirements and attrition pulled decades of tribal knowledge out of one major facility in a matter of months. The institutional memory walked out the door faster than it could be captured, and core processes, including equipment startup and shutdown, were never documented. New supervisors stepped into leadership roles without training or structured routines, and a new plant manager was still learning to lead the organization. The plant was running on improvisation.

Underneath the people problem sat a structural one. Overall Equipment Effectiveness averaged just 71% over the previous twelve months, and operators did not even know the daily production target they were working toward. Maintenance was overwhelmingly reactive: only 557 preventive-maintenance tasks existed for 2,314 assets, the break-in rate ran at 70%, and contractors filled the gaps with no accountability. Fewer than half of work orders came back from technicians, and only 20% of those carried usable detail, so the plant could not even see its own failure patterns. In one process, 67% of the Management Operating System elements went entirely unused.

Leadership capacity was just as thin. Over 90% of supervisors demonstrated marginal or unsatisfactory leadership practices, and supervisors spent only 6% of their time actively supervising employees while more than 30% were classified as merely available. Goals and strategies were misaligned from the top down, with just 19% of managers fully aligned with top leadership priorities. The cost of all this surfaced in quality: product quality claims averaged $232,000 per month over the prior year, and customer complaints exceeded 90 annually. POWERS identified more than $5 million in annualized improvement potential, but capturing it would take more than a fix to any single problem. It needed a system that rebuilt visibility, routine, and accountability at once.

The Diagnosis

Six structural gaps producing the same outcome from six directions.

Lost tribal knowledge

Two years of retirements and attrition stripped away decades of know-how, and core processes like equipment startup and shutdown were never documented, leaving the plant to run on improvisation.

New, untrained leadership

Supervisors were new to leadership with no training or routines and a new plant manager was still learning the organization, so over 90% of supervisors demonstrated marginal or unsatisfactory leadership practices.

Supervisors not supervising

Supervisors spent just 6% of their time actively supervising with over 30% classified as available, and only 19% of managers were fully aligned with top leadership priorities, so accountability had nowhere to land.

Reactive maintenance with no accountability

Only 557 preventive-maintenance tasks existed for 2,314 assets and the break-in rate ran at 70%, while contractors filled gaps without accountability and fewer than 50% of work orders came back, only 20% with usable detail.

Flying blind on targets and OEE

OEE averaged just 71%, operators did not know the daily production target, and in one process 67% of MOS elements went unused, so the team could not see or steer its own throughput.

A heavy cost of poor quality

Product quality claims averaged $232,000 per month and customer complaints exceeded 90 a year, draining margin that better process discipline should have protected.

What POWERS Did

Installed a full operating system across production and maintenance, then coached leaders out of firefighting.

POWERS installed a full Management Operating System across both production and maintenance, rebuilding the visibility and routine the facility had lost. On the frontline, a Daily Weekly Operating Report gave teams a live view of production versus goals, while a tiered meeting structure and shift huddles cascaded metrics and drove accountability down through every level. Daily schedule control and Short Interval Control kept teams focused on throughput shift by shift, and a Skills Flex Matrix paired with structured operator training began rebuilding the capability that retirements and attrition had carried out the door.

In parallel, the Maintenance MOS replaced reactive firefighting with a full planning, scheduling, and kitting process. Contractors were brought under control with defined scope, follow-up, and measurement, so the gaps they had been quietly filling became visible and accountable. Root Cause Analysis attacked the recurring failures behind the 70% break-in rate, and Sustainability Audits made sure the new disciplines held rather than eroding once attention moved on.

Across both fronts, leadership coaching and structured routines did the connective work. Gemba Walks, Leader Standard Work, and Effective Meeting Assessments reshaped how supervisors spent their time, moving them off the floor-level available status and into active supervision and proactive problem-solving. The cumulative effect was a plant that could finally see its own performance, assign ownership for it, and act on it before small deviations compounded, which is what turned more than $5 million in identified potential into realized results.

The Full Result

Six measurable gains, all from reliability and routine rather than new capital, adding up to more than $5 million in annualized impact.

$2.36M
Conversion Cost Reduction

Conversion costs fell as the new operating system pulled waste and reactive cost out of production, an $8.63-per-MT improvement of about 25%.

71% to 95%
OEE

Overall equipment effectiveness climbed as planned maintenance, root cause analysis, and short-interval control replaced firefighting on the floor.

19.8%
Production Increase

Output rose over the prior seven months to 805,148 MT, unlocking the capacity the reliability and target gaps had been hiding.

$1.48M
Contractor Cost Reduction

Maintenance contractor costs dropped annualized once contractors worked to defined scope, follow-up, and measurement instead of filling gaps unchecked.

$927K
Quality Claims Reduction

Quality claims fell annualized and customer complaints dropped 68% as SOP discipline and quality tracking took hold.

54% to 7%
Turnover Reduction

Turnover fell over twelve months as training, structured routines, and proactive leadership stabilized a workforce that had been hemorrhaging experience.

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