Food (meat producer)
Interim Management and Process Improvement
A principal of MainStream Management (“MainStream”) was engaged by Tyson Foods, a $28 billion meat manufacturer, to provide interim management as the Plant Manager at the company’s production facility in Santa Teresa, New Mexico. The facility produced 108 million pounds of beef, chicken, and pork annually with revenues of $486 million. The facility had a reputation for low quality and poor operating performance. Due to lack of confidence in management, only low margin / low risk items were produced at the facility. At the time MainStream was engaged, the company was considering closing the facility and moving the products to other plants within the company.
MainStream conducted a complete assessment of the company’s operating procedures and manufacturing processes. This assessment weighed heavily on a management review to determine if each staff member was willing and capable of following the proper operating parameters necessary to produce a high quality product. Staff members unwilling or unable to comply were replaced. All remaining employees received detailed training on the correct procedures and processes and were provided with check lists to follow and complete.
The company’s R&D department and corporate management recognized the overall improved attitude at the facility and the willingness to work with customers to provide a quality product. Throughout the engagement, production costs continued to decrease resulting in the facility becoming a viable location to produce new items for large customers. As larger volume orders with higher quality were being produced, additional production volume drove costs even lower. Newly implemented employee safety training resulted in an excellent safety record. Customer complaints due to low quality products were dramatically reduced.
The year prior to MainStream’s principal being engaged, the facility did not make budget. In fact that had been a common occurrence over many previous years. During the first year of MainStream’s principal engagement the budget was met. Year two resulted in exceeding the budget by $2.1 million and in the final year the facility exceeded budget by $15.6 million.