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An Asian tinplate manufacturer faced the challenge of optimizing its workforce and service contract expenditure to ensure effective and efficient operations. Greaux Consulting was engaged to analyze workload distribution, organizational structure, and service contract efficiency. This case study uncovers how the client achieved an 18% reduction in manpower cost and a $0.35 million decrease in service spend.
Achieved a reduction of over 16% in manpower support and commercial services.
Realised approximately $1M million in aggregate benefits
Secured a 10% reduction in spend value from analysed service contracts.
The tinplate sector is a critical part of the packaging industry, supplying tin-coated steel sheets primarily used for manufacturing cans and containers in food and beverage, edible oils, processed foods, paints, pesticides, aerosols, and battery casings. Tinplate manufacturing involves complex processes like cold rolling, annealing, temper rolling, and tin coating, which require skilled labor to ensure consistent product quality and minimize defects. A well-trained workforce helps maintain high overall equipment effectiveness (OEE) and throughput, directly impacting profitability.
The client is a leading tinplate producer in Asia, catering to a significant portion of both the prime and overall domestic market. A subsidiary of a major steel conglomerate, it serves diverse industries, including edible oils, paints, processed foods, and aerosols. With a workforce spanning decades, the company exports 20-25% of its products globally, primarily to Southeast Asia, the Middle East, and Europe.
The client recognized the need to ensure an optimum number of positions to run operations effectively and efficiently.
They aimed to reduce manpower through various means, such as technology adoption and workload redistribution. Furthermore, significant spending on service contracts (including cleaning and IT support) required optimization.
The initial phase of the project involved an in-depth analysis of the client, encompassing workload distribution, organizational span of control, roles and responsibilities, and existing service contracts to identify areas for efficiency improvements and cost reduction.
Developing and implementing optimized management control systems and processes for sales.
Developing standardized practices.
Delivering a seamless customer experience, from initial contact through the onboarding process to day-to-day customer maintenance and support.
Improving communication and process interfaces with other functional areas such as production, planning and quality, research and development, and back office.
The project was structured into two primary workstreams: Manpower and Service Contracts.
Workstream 1: Manpower Rationalization
Workstream 2: Service Contract Optimization
A detailed analysis of job volume, frequency, and criticality was undertaken.
Manpower Stream:
Service Contracts Stream:
Manpower Efficiency: A 16% reduction in support staff and commercial services, contributing to $0.63 million in savings.
Contract Savings: 10% reduction in service contract expenditures, equating to $0.36 million annually.
Sustainable Impact: The client transformed into a leaner organization with improved spans of control, more explicit role definitions, and robust contract management systems. Future savings are anticipated as additional vendor negotiations conclude.
*Client-specific details have been intentionally omitted to maintain strict discretion.
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