A food condiment manufacturer struggling with inefficient production processes that increased costs and hit profits contacted UK Business Advisors for help. The benefits of the consultancy project were greater than expected.
The challenge to improve efficiency and reduce costs
Upon assessment, several areas for improvement were identified, including outdated equipment, inefficient workflows, and a lack of standardisation in the production process. Additionally, the company was unaware of their eligibility for Research and Development (R&D) tax credits, which could provide a significant financial benefit.
The three solutions found
- Equipment Optimisations – a reliability assessment of manufacturing processes was conducted. Recommendations on optimising outdated equipment with cheap to implement upgrades and improved user interface were made. This included the installation of a new bottling line control system, which increased production speed and reduced downtime.
- Process Redesign – the UKBA manufacturing expert collaborated with the company to redesign their production process, implementing lean manufacturing principles and standardising workflows. This resulted in a more efficient use of resources, reduced waste, and increased production output.
- R&D Tax Credit Eligibility – The business consultant identified that the company’s efforts to improve their production process through the implementation of new technology and process improvements qualified for R&D tax credits. The consultant provided guidance and support in the preparation and submission of the R&D tax credit claim, enabling the company to reclaim a significant portion of their R&D expenses.
Delivering results for the client
- Increased Efficiency – The equipment optimisation and process redesign resulted in a 20% increase in production output and a 15% reduction in production costs.
- R&D Tax Credit Reclaim – The company was able to reclaim £120,000 in R&D tax credits, providing a significant financial boost to their bottom line.
- Improved Competitiveness – The improvements in efficiency and cost reduction have enabled the company to be more competitive in the market, increasing their market penetration and improving their financial resilience.
Hiring an expert makes sense
The food condiment manufacturer was looking for a specialist who understood their challenges and who could implement Lean Manufacturing Frameworks. They were sure that improving manufacturing productivity and efficiency and using an operations specialist to deliver business growth was essential for success.
They didn’t consider that the expert consultant could redesign their processes for greater efficiency, reduce production costs or enable them to reclaim a significant portion of their R&D expenses through the R&D tax credit program.
The company’s improved service and competitiveness enabled them to increase market share and their improved financial performance made them more resilient to external factors (like rising supply-chain and material costs) are a testament to the value of manufacturing engineering expertise in driving business success.