ICC & VI-JON

 

How to identify $20 million USD in annual saving in 2 weeks

 

ICC and the health and beauty product manufacturer Vi-Jon have been collaborating for several years on specific ad-hoc projects. Recently Vi-Jon invited a team of ICC experts to contribute to Vi-Jon’s 3-year investment plan early in the process to provide a more strategic viewpoint on their manufacturing processes. ICC conducted a ICC Fitness AssessmentTM on-site at two different Vi-Jon plants and examined all stages of the manufacturing processes from incoming raw material to warehouse gate.

A team of 6 ICC engineering experts and business strategists conducted the ICC Fitness AssessmentTM in only 10 working days per site.The resulting project portfolio included optimization initiatives in Vi-Jon’s manufacturing processes, packaging divisions and general organizational workflow. ICC estimates that the complete optimization project will result in over $20 million USD in cost reductions per year – with a breakeven on the invested capital in approximately 2 years.

A breakthrough discovery during the Fitness Assessment process was the proposal that Vi-Jon could disassemble several liquid storage tanks thus saving both storage and maintenance costs. Instead Vi-Jon will implement ICC’s Optimized Capacity BlendingTM concept that allows Vi-Jon to blend raw materials directly in the transportation pipes.

In addition to the capital improvements, Vi-Jon expects a leaner, easier production process contributing to greater flexibility and higher employer satisfaction. As an added benefit, Vi-Jon’s customers can also expect a higher quality end product.

 

MECHANICAL ENGINEERING

  • Challenge:
    How does Vi-Jon invest CAPEX budget optimally over the next 3 years? Taking into consideration a demand for increased output volumes and a necessity for production flexibility as well as reduced costs.
  • Process:
    ICC team of technical experts conducts ICC Fitness AssessmentTMcovering two manufacturing plants to identify bottlenecks and opportunities. 10 working days per site with an immediately actionable project plan covering Manufacturing Process, Packaging, Utilities, Quality and Structural improvements.
  • Result:
    59 improvement projects identified with a measurable ROI in 5 different categories:
    1) Cost savings
    2) Quality Improvement
    3) Capacity Extension
    4) Asset Replacement
    5) Marketing
    … amounting to over $20 million USD in annualized OPEX (Operational Expenditure) savings driven by a 3 year modernization program with payback of just over 2 years.

ICC Delivery:

  • Acceleration of raw material reception.
  • Implementation of ICC OCBTM (Optimized Capacity Blending)
  • Improvement of buildings, grounds and working conditions
  • Redesign of automation for enhanced efficiency and ease of use
  • Migration to versatile, fast change-over, high speed packaging lines