K B Pizza Develops Value Stream Map, Saving More Than $80,000 Per Year in Waste

 

Client Profile:

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.

Situation:

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.

Solution:

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.

Results:

  • 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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