Situation
Prestige Foods Australia (PFA) is a Melbourne-based, Australian-owned manufacturer specialising in premium concentrated stocks, sauces, broths, cooked grains and pulses, and ready-to-eat meals. Founded in 1990, PFA operates from a state-of-the-art facility, holds global food safety certifications, and is recognised for producing authentic, natural culinary ingredients for food service, retail, and contract manufacturing customers.
The business had experienced steady growth and saw strong opportunities for further expansion. To capitalise on this demand, PFA needed to ensure its manufacturing operations could produce more output, more efficiently, without requiring significant increases in labour or footprint. Management’s goal was to improve profitability and increase production throughput by 30% within its existing facility.
Encouragingly, during a workplace observation, OE Partners noted that the facility was already clean, well-organised, and staffed by a positive, engaged team. This provided an excellent foundation for a Lean transformation focused on building capability, eliminating waste, and aligning everyone on performance improvement.
Challenge
Despite strong fundamentals, Prestige Foods faced several operational challenges that were limiting profitability and constraining growth potential:
1. Process Performance Measurement
Although yield and product specification compliance were measured, there was no comprehensive set of process KPIs to give management visibility into the daily performance of critical operations. Opportunities existed to measure and visualise:
- Production output by area
- Customer DIFOT (Delivery in Full, On Time)
- Machine performance (downtime, changeover time)
- Labour productivity (output per labour hour)
Without these metrics, improvement efforts could not be effectively targeted at the areas of greatest opportunity.
2. Standard Work
The business relied on capable individuals to coordinate labour and task allocation, this created variation from shift to shift. This inconsistency reduced overall productivity and made it harder to plan with confidence.
3. Culture of Proactive Improvement
While staff were hardworking and diligent, their focus was mainly on the “what” of daily work. What’s the next order? What’s the next task? They weren’t considering “why are we doing it this way?” or “how can we doing things differently, more efficiently?” Management wanted to develop a culture where employees continuously identified and implemented better ways of working.
4. Waste in Processes and Layout
Examples of process waste included excessive movement of materials and people, production stoppages due to imbalances and material shortages, and underutilised storage space. There was an opportunity to streamline layouts, eliminate wasted motion, and improve flow to get closer to best-practice manufacturing.
5. Capability Building
To sustain improvement, PFA needed to build internal capability. Management identified three key staff to be trained in Lean Six Sigma Green Belt, creating a common language and skillset for continuous improvement projects.
Action
OE Partners designed and executed a Lean transformation program focused on capability building, data-driven improvement, and hands-on implementation support.
1. Value Stream Mapping
The engagement began with a current state value stream mapping exercise to document how work flowed through the plant, identify bottlenecks, and quantify waste.
A future state design was then created, mapping an optimised process that would allow PFA to hit its +30% output target without increasing headcount.
2. Green Belt Training & Capability Building
Three key staff, including GM Chris Fuller, were trained in Lean Six Sigma Green Belt, learning how to use structured problem-solving tools, root cause analysis, and data-driven decision-making. This training provided the team with the skills needed to lead their own improvement projects and create a shared language for change.
3. Targeted Improvement Projects Using DMAIC
Improvement initiatives were structured using the DMAIC (Define-Measure-Analyse-Improve-Control) framework, ensuring that solutions were based on data and that improvements would be sustained.
Key projects included:
- Reduction Tank Throughput Project: Identified as the major bottleneck in the process, limiting the entire plant’s output. A targeted project championed by Chris Fuller increased throughput by 40%, delivering a benefit of $220,000 annually.
- Labour-Saving Devices: Implementation of an auto-lifting device, auto-feed conveyor, and improved fat separator to reduce manual handling, save labour hours, and reduce the risk of injury. Combined, these initiatives were projected to deliver over $800,000 in benefit per year.
- Performance Measurement: Implementation of visual KPIs for output, downtime, and productivity, enabling the team to manage performance proactively and drive continuous improvement.
4. Coaching & Change Support
OE Partners provided ongoing project coaching and implementation support, helping the team move from training to execution. This included assistance in building business cases for capital investments, justifying them with clear ROI calculations.
Results
The engagement delivered significant measurable and cultural benefits for PFA:
- 40% Increase in Throughput: The reduction tank project removed the primary bottleneck, significantly increasing plant capacity and enabling revenue growth without additional labour.
- Over $1M in Annual Benefits: When combined with labour-saving devices and process improvements, the initiatives generated more than $1M in financial benefit.
- Improved Safety: Manual handling risks were reduced through automation and ergonomic improvements, lowering the risk of injury and improving working conditions.
- Embedded Capability: Three Green Belts were certified and actively leading projects, ensuring that the business could continue to identify and execute improvements independently.
Proactive Culture: The team shifted from reactive problem-solving to proactive performance management, with clear KPIs and visual management systems driving daily decision-making.
Client Perspective
Chris Fuller, General Manager at PFA, praised the engagement and the value of OE Partners’ expertise:
“OE Partners were able to train myself and two of my staff with Lean. Their methods and knowledge in this field were certainly top level and we were able to take a lot of useful information that we could implement into our business.”
Conclusion
Prestige Foods Australia’s partnership with OE Partners demonstrates how a structured Lean program can uncover hidden capacity, improve profitability, and create a culture of continuous improvement.
By combining value stream mapping, targeted DMAIC projects, capability building, and hands-on coaching, PFA delivered a significant increase in throughput, over $1M in annual financial benefit, and positioned itself for profitable growth.
Most importantly, PFA now has the tools, data, and internal capability to sustain improvement long into the future.
