- Improved market knowledge
- $40K+ in potential yearly savings
- Options to optimize facility layout
- $12K in yearly savings identified with new equipment investment
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Hernandez & Solis, Inc. is a high quality food supplier in Port Arthur, TX. They have been in the tortilla product business for over 27 years. Under the leadership of founder, Elias Hernandez, and his children, Arthur Hernandez and Sabrina Hernandez Vrooman, the company developed a strong market in East Texas, Louisiana, and Mississippi, but in 2005 a major challenge hit the region in the form of Hurricane Rita.
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Situation
Their facilities survived but the company lost customers from their prime market, and the pool of skilled labor in the area decreased. As a manufacturer in the impacted zone, Hernandez & Solis was eligible for Federal assistance. The local SBDC in Houston connected them with TMAC.
TMAC Industry Specialist, Luis De La Torre met with Mrs. Vrooman to discuss the situation and to understand their company’s strategic goals. A two step solution was agreed upon to address challenges.
Solution
First, TMAC prepared a market analysis that included product and market trends, potential areas of growth, a SWOT analysis, a comparison of competitors, and an examination of brand awareness. This information assisted strategic planning and provided ideas for new growth to offset the Hurricane’s impact.
Second, the production facility offered several more opportunities to recoup lost cost. Quantifying the waste in the production line formed the first step. A waste log was kept for one week. The examination discovered material loss in several major product areas. Calculated over a year, the loss was significant; totals amounted to more than $42,000.
A layout analysis and a spaghetti diagram demonstrated that flow could be improved and waste reduced with a new layout. Three options were created as future state plans for the company to examine. A grain storage facility was recommended to further cut overhead by $12 thousand a year. The initial investment of $25 thousand could be recouped in two years.
Results
As a result of working with TMAC, Hernandez & Solis had multiple options to offset the impact from Hurricane Rita.
- Improved market knowledge from analysis
- $40K+ in potential yearly savings from waste reduction
- $12K in yearly savings identified with new equipment investment
- Options to optimize facility layout
“TMAC helped provide us with helpful information, a fresh viewpoint and a reminder of areas for improvement that are sometimes overlooked when you are immersed in the day-to-day operations of the company” says Mrs. Vrooman. Now, Hernandez & Solis is ready to continue its growth and continue serving its customers the best in tortilla food products.
County: Jefferson
Industry: Food Supplier
Services Provided: Market Analysis and Facility Layout, and Lean Techniques
For more information contact Luis De La Torre at 832-842-7053
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