Tetra Pak OCR Program Helps Cut Packaging Line Operating Costs by 12%

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Tetra Pak, Sweden, reports that its Operational Cost Reduction (OCR) program can help companies significantly reduce their packaging line operating costs. The program teaches employees to identify ways to continuously increase operational efficiency, thus reducing costs. Since it was launched in 2008, the program has helped more than 60 customers achieve savings through 80 separate projects.

The OCR program is a consulting service that enables customers to reduce the costs of running a complete packaging line (i.e. labor, maintenance, and utilities), which typically represent between 5% and 15% of their total system costs. The savings are achieved by reducing or even eliminating losses and by implementing a customized improvement program throughout the plant. In addition, there are productivity gains associated with selling the extra capacity created.

Tetra Pak's specific methodology, called "Focused Improvement," involves activities designed to elevate the performance of a specific part of a plant to reduce operational costs, increase production capacity, and improve line performance. Tetra Pak works together with its customers to identify areas where savings can be made and efficiencies improved and then designs tailor-made improvement plans. Tetra Pak's customized solutions are based on Total Productive Maintenance (TPM) tools and techniques that provide a focused, effective, and structured approach to reducing operational costs. Problems are analyzed, root causes identified, and improvements maintained by creating new standards and procedures.

Each OCR project goes through three main phases:

• Cost mapping and loss analysis. The initial phase provides an in-depth analysis by mapping costs of the entire packaging line to get the full operational cost structure.
• Opportunity analysis. Savings are identified and the quickest and biggest wins are prioritized.
• Implementation. Targeted improvement teams are created, consisting mainly of customers' staff that take ownership of the implementation and use TPM tools and techniques.