Tetra Pak Launches Operational Cost Reduction Programme

The OCR programme is a consulting service that enables customers to reduce the costs of running a complete packaging line (i.e. labour, maintenance and utilities), which typically represent between 5% to 15% of their total system costs.

28 Apr 2010 --- In the current economic climate, organisations are striving to reduce costs, drive efficiencies and increase productivity. Tetra Pak is constantly thinking of ways in which it can support its customers achieve those goals. Now, thanks to its Operational Cost Reduction (OCR) programme, Tetra Pak is able to help customers achieve an average 12% operational costs savings associated with running a packaging line. Since the programme began in 2008, Tetra Pak has helped more than 60 customers achieve those savings through 80 separate projects.

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

“Thanks to the OCR programme, we are now able to operate with lower levels of finished product inventory and to provide greater potential output with the same machines when required,” said Steve Satherley, chief operations officer at Saudi Arabia’s SADAFCO, which completed its first OCR project in 2008. “We also continue to implement the learning and disciplines already developed into other areas of the factory.”

Operational efficiency and cost reduction are critical requirements for any organisation doing business today. In the current economic climate many companies are introducing cost-cutting measures to deliver short-term savings in order to remain competitive. However, when organisations adopt cost-reduction strategies to capture maximum value through direct savings as well as the installment of a culture of efficiency, the benefits will be felt in the current climate and in the future.

“The OCR programme helps our customers improve their line performance and productivity by more than 10%,” said Steve Wyatt, vice president, Technical Service at Tetra Pak. “Any reduction in these costs would make a significant difference to customers’ bottom line and enhance their competitiveness.”