Top Operational Excellence Strategies for Reducing Waste and Increasing Efficiency in FMCG Plants

Introduction: Why Operational Excellence Is Now a Competitive Necessity

Fast-moving consumer goods (FMCG) manufacturers operate in one of the most challenging environments worldwide. Narrow profit margins, unpredictable supply chains, rising energy costs, labour shortages, and heightened customer expectations mean that achieving operational excellence is no longer optional; it is essential for survival.

Yet many FMCG plants still struggle with:

• high levels of material waste
• inconsistent production performance
• unplanned downtime
• inefficient changeovers
• poor line utilisation
• rising operational costs

The good news is that operational excellence (OpEx) provides a structured, proven pathway to address these challenges. When implemented correctly, OpEx can reduce waste by 20–40%, improve efficiency by 10–30%, and significantly increase profitability.

This article explores the most effective operational excellence strategies FMCG manufacturers can adopt to reduce waste, improve efficiency, and build resilient, high‑performing operations.

1. Building a Culture of Continuous Improvement

Operational excellence begins with people, not machines.

A plant can invest in automation, digital tools, and new equipment, but without a culture of continuous improvement, the gains will be temporary.

1.1. Empowering frontline teams

Operators, technicians, and supervisors are closest to the process. They see waste, inefficiencies, and recurring issues long before management does.

Empowering them through:

• daily huddles
• visual management boards
• suggestion systems
• problem‑solving workshops
• cross‑functional improvement teams

creates a culture where improvement becomes part of daily work.

1.2. Training in lean and problem‑solving tools

Teams should be trained in:

• 5S
• root cause analysis (RCA)
• PDCA cycles
• Kaizen
• value stream mapping
• standard work

These tools give employees the confidence and capability to drive meaningful improvements.

2. Reducing Waste Through Lean Manufacturing Principles

Lean manufacturing remains one of the most powerful frameworks for waste reduction in FMCG operations.

2.1. Identifying the “Seven Wastes”

The seven wastes (TIMWOOD) are:

• Transport
• Inventory
• Motion
• Waiting
• Overproduction
• Overprocessing
• Defects

FMCG plants often struggle most with:

• overproduction
• defects
• waiting time
• unnecessary motion

A structured waste walk can reveal hidden inefficiencies that cost thousands of pounds per week.

2.2. Implementing 5S for workplace organisation

A clean, organised, and standardised workplace:

• reduces motion waste
• improves safety
• reduces changeover time
• increases productivity

5S is simple but transformative when consistently applied.

2.3. Standardising work processes

Standard work ensures:

• consistent quality
• predictable performance
• reduced variability
• easier training
• fewer errors

In FMCG plants, even small deviations in standard work can lead to significant waste.

3. Improving Overall Equipment Effectiveness (OEE)

OEE is one of the most important KPIs in FMCG manufacturing. It measures:

• Availability (downtime)
• Performance (speed losses)
• Quality (defects and rework)

Improving OEE directly reduces waste and increases output.

3.1. Reducing unplanned downtime

Common causes include:

• equipment failures
• poor maintenance planning
• operator errors
• material shortages

Strategies to reduce downtime:

• predictive maintenance
• autonomous maintenance
• improved spare parts management
• operator training
• real‑time monitoring

3.2. Minimising speed losses

Speed losses often occur due to:

• poor machine settings
• inconsistent raw materials
• operator variability
• equipment wear

Regular performance reviews and optimisation can significantly improve throughput.

3.3. Reducing quality losses

Quality issues are expensive. They lead to:

• rework
• scrap
• customer complaints
• regulatory risks

Root cause analysis and process control are essential for reducing defects.

4. Streamlining Changeovers and Reducing Setup Time

In FMCG plants, frequent changeovers are common — especially in beverage, dairy, bakery, and packaging operations.

Long changeovers lead to:

• lost production time
• increased waste
• higher labour costs

4.1. Applying SMED (Single-Minute Exchange of Die)

SMED helps reduce changeover time by:

• separating internal and external tasks
• standardising procedures
• improving tool and material organisation
• using quick‑release mechanisms

Plants that implement SMED often reduce changeover time by 30–70%.

4.2. Improving planning and scheduling

Better scheduling reduces unnecessary changeovers and improves line utilisation.

5. Using Data and Digital Tools to Drive Efficiency

Digital transformation amplifies operational excellence.

5.1. Real-time performance dashboards

Dashboards help teams:

• track KPIs
• identify bottlenecks
• respond quickly to issues
• improve decision-making

5.2. AI-powered optimisation

AI can optimise:

• energy usage
• raw material dosing
• cleaning cycles
• maintenance schedules
• production planning

This is an area where Buklam’s expertise in AI automation becomes a major differentiator.

5.3. Predictive maintenance

Predictive maintenance reduces:

• unplanned downtime
• repair costs
• safety risks

It also extends equipment life.

6. Strengthening Quality Management Systems

Quality issues are one of the biggest sources of waste in FMCG plants.

6.1. Implementing robust process controls

This includes:

• statistical process control (SPC)
• in-line monitoring
• automated inspection systems

6.2. Reducing variability

Variability in:

• raw materials
• equipment performance
• operator behaviour

leads to defects and waste. Standardisation and training are key.

7. Enhancing Supply Chain and Inventory Management

Operational excellence extends beyond the factory floor.

7.1. Reducing excess inventory

Excess inventory ties up capital and increases waste risk.

7.2. Improving supplier performance

Reliable suppliers reduce:

• material variability
• delays
• quality issues

7.3. Strengthening logistics efficiency

Better logistics reduce:

• transport waste
• storage costs
• lead times

8. The Role of Leadership in Driving Operational Excellence

Leadership commitment is essential.

Effective leaders:

• set clear expectations
• invest in training
• empower teams
• celebrate wins
• remove barriers
• model continuous improvement

Without leadership support, OpEx initiatives lose momentum.

9. How Buklam Integrated Services Limited Supports FMCG Manufacturers

Buklam helps FMCG plants achieve operational excellence through:

✔ Process optimisation and waste reduction programmes

Identifying inefficiencies and implementing targeted improvements.

✔ Lean manufacturing and continuous improvement training

Building internal capability for long-term success.

✔ OEE improvement and performance diagnostics

Using data to unlock hidden capacity.

✔ AI-powered operational optimisation

Enhancing efficiency through smart automation and predictive insights.

✔ Changeover optimisation and SMED implementation

Reducing downtime and increasing throughput.

✔ Quality and compliance enhancement

Strengthening systems to reduce defects and improve consistency.

If your FMCG plant is facing rising costs, inconsistent performance, or high levels of waste, Buklam can help you implement proven operational excellence strategies that deliver measurable results.

Book a consultation today and unlock the full potential of your operations.