CASE STUDY SS-FB-CO-01 | Carve-Out
Project Fusion – Consolidating Manufacturing Operations for Synergy and Efficiency
Seamlessly Integrating Two Factories into One Unified Operation
15% ↓
COGS Reduction Post-Integration
<10 Days
Total Operational Downtime
85%+
Key Employee Retention Rate
Challenge
Consolidating Operations While Preserving Performance
- Dual Facilities: Candle Lite operated independently, leading to duplication of resources and inefficiencies.
- Cost Pressures: High production costs limited competitiveness and profitability.
- Supply Chain Complexity: Separate sourcing and logistics systems added unnecessary overhead.
- Quality Variance: Differing standards between facilities created inconsistencies in product quality.
- Employee Retention Risk: Transitioning staff to a new site risked morale and potential loss of key talent.
Solution
Executing Project Fusion – Structured Consolidation Strategy
- Production Relocation: Physically moved Candle Lite’s equipment and lines to Luminex’s Ohio factory.
- Process Integration: Unified supply chain systems and standardized operational workflows.
- Employee Transition: Successfully onboarded and trained key Candle Lite staff at the consolidated site.
- OEE Improvements: Implemented best practices to boost efficiency and minimize downtime.
- Quality Alignment: Established corporate-wide quality standards to ensure consistent results.
Results
Streamlined Operations and Sustainable Cost Savings
- COGS Reduction: Achieved a 15% decrease in Cost of Goods Sold within six months post-integration.
- Minimal Downtime: Maintained business continuity with fewer than 10 days of total disruption.
- Quality Assurance: Defect rates held below 1.5% across merged production lines.
- Talent Retention: Retained over 85% of key production staff during the transition.
- Synergy Realized: Unified operations created a stronger, more competitive manufacturing platform.