Case Study
Operational turnaround of a plywood manufacturing plant
overview
Turning around an underperforming plywood factory by addressing production inefficiencies, equipment reliability and quality issues through operational restructuring, performance management and workforce training.
Pieter du Plessis
Burapha Agroforestry, CEO & UPC Forestry BV
"Krystian combines strong technical expertise with a practical, hands-on approach that delivers results on the factory floor. He quickly understands complex production issues, finds workable solution and brings the team with him. Whatever the circumstances, including difficult and fast-changing ones, he stays calm, adapts and keeps operations moving. I would recommend him to any business looking to strengthen its manufacturing performance."
+41%
Improvement in OEE
−65%
Work-in-progress inventory
Project Objectives
An operational turnaround project focused on restoring efficiency, improving product quality and stabilizing production at a newly established plywood manufacturing plant.
Following its initial production ramp-up, the factory continued to struggle with low efficiency, poor material yield, recurring equipment breakdowns and significant quality problems.
These challenges were compounded by limited workforce experience, insufficient training and a lack of effective performance monitoring. Operating in a geographically isolated environment with restricted local resources and a complex supply chain made resolving these issues particularly difficult.
The original business model was also based on overly optimistic assumptions about raw material quality, creating a gap between expected and achievable production performance.
The objective was to rebuild the factory’s operational foundations by reassessing team responsibilities, reorganizing workflows, improving equipment reliability and introducing the management systems and training needed to achieve sustainable improvements.
Key Challenges
Low production efficiency: Frequent equipment breakdowns, limited employee skills and the absence of an effective KPI monitoring system contributed to poor operational performance and made it difficult to identify and address recurring problems.
Severe quality issues and customer claims: Insufficient quality awareness and a largely paper-based quality system meant employees lacked a clear understanding of how individual production stages affected the finished product. This resulted in significant quality problems, customer complaints and declining confidence in product reliability.
Poor equipment condition and maintenance practices: Despite being relatively new, production machinery suffered from inadequate maintenance and previous temporary repairs. Frequent downtime, low technical availability and equipment-related quality problems affected operations throughout the factory.
Operational constraints and unrealistic production assumptions: Limited access to skilled personnel, challenging supply conditions and discrepancies between expected and actual raw material quality made it necessary to reconsider how production was organized and managed.
The Approach
The turnaround began with an assessment of the factory’s organizational structure, production processes and equipment condition to identify the underlying causes of poor performance.
Team responsibilities and workloads were reviewed and reorganized to establish clearer accountability and improve coordination across operations.
Production workflows were restructured to address recurring disruptions, improve equipment reliability and reduce inefficiencies. Particular attention was given to maintenance practices, quality control and the impact of individual production stages on final product quality.
Operational KPIs and regular performance monitoring were introduced to improve visibility, identify recurring problems and support more effective decision-making.
A structured training program was also implemented to strengthen technical skills, improve quality awareness and establish more consistent working practices.
Together, these changes addressed both the technical and organizational weaknesses affecting the factory’s performance.
The results
The operational turnaround delivered measurable improvements in manufacturing efficiency, material utilization and inventory management:
41% increase in Overall Equipment Effectiveness (OEE).
Yield ratio improved from 23% to 28%, moving closer to the stated global industry benchmark of 34%.
65% reduction in work-in-progress (WIP) inventory.
Successful implementation of international industry standards, strengthening manufacturing practices and quality management.
The project addressed fundamental weaknesses in the factory’s operations, improving production performance while establishing more structured processes, clearer responsibilities and stronger workforce capabilities.
Lessons learned
Equipment age doesn’t guarantee reliability: Even relatively new machinery can become a major operational constraint when maintenance practices are inadequate and temporary repairs replace systematic problem-solving.
Quality must be managed throughout production: Final product quality depends on employees understanding how their work affects subsequent processes. Documentation alone cannot replace practical quality awareness and consistent operating standards.
Performance improvement starts with measurement: Without clear KPIs, regular monitoring and effective follow-up, recurring problems remain difficult to identify and resolve.
Operational plans must reflect actual conditions: Production targets and business assumptions need to account for available raw materials, workforce capabilities and supply chain limitations rather than relying on theoretical performance expectations.
Key takeaways
This project demonstrates how operational turnaround requires more than addressing individual production problems. Sustainable improvement depends on aligning equipment reliability, manufacturing processes, workforce capabilities and performance management.
By restructuring workflows, strengthening operational controls and introducing targeted training, the factory achieved a 41% increase in OEE, improved its yield ratio from 23% to 28% and reduced WIP inventory by 65%.
The implementation of international industry standards further supported the transition toward more consistent and controlled manufacturing operations.
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