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Royal FrieslandCampina Cheese

Towards the ‘cost-leadership’ cheese plant of the future

It was Production Director Frank Termote who contacted ARV Group to talk about how the sector could turn around what was perceived as a trend towards high maintenance costs. Fixed costs are an important indicator for FrieslandCampina, and the management pressure was on.

Essentials:

  • ARV Group's assessment concluded that not only could maintenance costs be reduced by 10%, but also that productivity (OEE) on the cheese-packaging lines could be improved by a further 20%. This would result in savings of € 1 million annually 
  • The business plan included improving the maintenance package according to the RCM (Reliability Centered Maintenance) method, directed at optimizing OEE while minimizing maintenance costs
  • An E-learning program was also set up for operators to raise competence levels and thereby prevent loss of OEE and avoid costly operational errors
  • By the end of the project, the Performance Management System had become an integral part of the organization

Concrete results:

  • Efficiency targets surpassed with ease
  • OEE boost on packaging lines from 58% to 69%
  • Combined with maintenance cost reductions of 10% annually
  • E-learning program and Performance Management System in place
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ARV Group's assistance in identifying potential areas of improvement, in establishing best practices for those improvements and finally in providing ongoing support for our people in improving the quality of their leadership has helped us enormously in our quest to develop the cost-leadership cheese plant of the future. Halfway through the process, we're well on our way to outstripping our original goals.
Frank Termote, Operations Director
ARV GROUP - Experience the experience