UK Packaging Manufacturer

The Digital Turnaround

Transforming a struggling UK packaging manufacturer into a profitable, data-driven business

Client UK Packaging Manufacturer
Industry Manufacturing
Services Operations Excellence, Financial Performance
Result £2.1M Annual Savings
The Challenge

Losses Masked by Poor Visibility

A family-owned packaging manufacturer with 120 employees was facing persistent margin erosion despite stable revenue. Leadership knew something was wrong but lacked the data to pinpoint the root causes.

The business was operating with:

  • No real-time production tracking: OEE (Overall Equipment Effectiveness) wasn't measured, downtime wasn't categorised, and machine performance varied wildly between shifts.
  • Opaque product profitability: The accounting system allocated overheads by labour hours—a method that obscured which customers and product lines were actually profitable.
  • Reactive decision-making: Without reliable data, the management team made decisions based on gut feel, leading to mispriced quotes and inefficient resource allocation.
  • Cultural resistance: The workforce was sceptical of "outside consultants" and concerned that measurement meant job losses.

Cash was draining fast. The business needed a transformation—not just in processes, but in culture and visibility.

The Solution

Data-Driven Operational Transformation

We deployed a three-phase programme combining industrial engineering rigour with financial transparency:

Phase 1: OEE Measurement & Quick Wins (Months 1-3)

  • Installed real-time OEE tracking on all four production lines using low-cost sensors and our proprietary dashboard
  • Trained operators and supervisors on downtime categorisation and root-cause analysis
  • Identified top 10 sources of waste: unplanned downtime, excessive changeovers, quality defects, and material handling delays
  • Implemented quick wins: standardised changeover procedures, preventive maintenance scheduling, and shift handover protocols
  • Result: OEE improved from 52% to 64% within 90 days

Phase 2: Activity-Based Costing Implementation (Months 3-6)

  • Designed and deployed an Activity-Based Costing (ABC) model to accurately trace costs to products and customers
  • Identified that 35% of product lines were loss-making when true costs were allocated
  • Repriced unprofitable products, renegotiated customer contracts, and discontinued non-strategic SKUs
  • Developed dynamic quoting tools that ensured every new order was profitable
  • Result: Average product margin improved from 12% to 18%

Phase 3: Continuous Improvement Culture (Months 6-12)

  • Established daily production meetings using visual management boards
  • Trained supervisors in Lean problem-solving techniques
  • Launched a suggestion scheme that rewarded operators for identifying improvements
  • Embedded financial literacy training so production staff understood how their actions impacted profitability
  • Result: Sustained OEE at 68%, with ongoing incremental gains
The Results

Measurable, Sustained Impact

£2.1M
Annual Savings Achieved

Through reduced downtime, improved margins, and eliminated unprofitable products

16%
OEE Improvement

From 52% to 68% through systematic waste elimination and preventive maintenance

6%
Margin Increase

Product margins improved from 12% to 18% via accurate costing and strategic pricing

100%
Real-Time Visibility

Live production dashboards now track performance across all shifts and lines

Within 12 months, the business moved from crisis to confidence. The company secured new investment, expanded into higher-margin product categories, and built an internal continuous-improvement capability.

"Greenwich Strategy didn't just give us a report—they rolled up their sleeves and worked alongside our team to build systems that actually work. The OEE tracking and costing model have become core to how we run the business. We now make decisions based on data, not guesswork."

— Managing Director, UK Packaging Manufacturer
Technologies Used

Tools & Methodologies

Operational Excellence

  • OEE Engine (Greenwich proprietary platform)
  • Lean Six Sigma methodologies
  • Total Productive Maintenance (TPM) framework
  • Visual management systems

Financial Systems

  • Activity-Based Costing (ABC) model
  • Power BI dashboards for real-time profitability tracking
  • Dynamic pricing and quoting tools
  • Customer and product profitability analytics

Data & Analytics

  • IoT sensors for machine monitoring
  • Real-time production dashboards
  • SQL databases for historical trend analysis
  • Python-based reporting automation

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