K B Pizza Develops Value Stream Map, Saving More Than $80,000 Per Year in Waste
K B Pizza, Inc., located in Franklin, PA, produces pizza crusts and related products for distribution to both domestic and international markets. Employing 35 people, the company was founded in 1947.
When the price of flour soared 400 percent, the owners of K B Pizza wanted to identify wastes in the production process and learn to produce their products more efficiently while preserving and growing profits.
Operations Strategy Consulting (OSC) conducted an assessment of the company’s production system, identifying 11 itemized products with significant production savings opportunities. Company employees then worked with Megan Burns to generate a Value stream Map, which illustrated that these products were generating a loss of more than $81,000 per year. A prioritized list of process improvement projects was developed by K B Pizza’s employees and Megan, who continued to work with the company team to develop and begin implementation plans. Coaching the improvement projects was provided and a labor usage analysis was conducted to evaluate labor levels, work content and training competency. With OSC’s support, K B Pizza has several process improvement projects underway which will increase efficiency and reduce waste.
- Retained sales of $5 million.
- Estimated sales increase of $50,000.
- Estimated cost savings of $118,000.
Because of OSC’s involvement with K B Pizza, we were able to strengthen ourselves financially and become a more stable company today. Kenny Benvenuti, General Manager / President
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