In the packaging and processing sector, putting in place a state-of-the-art production line may be a big step forward for any business. But the success of a vertical company depends on how effectively it is run.

“Transforming Packaging and Processing Operations: 2024,” a new publication from PMMI Business Intelligence, clarifies this important point. Through an analysis of the opinions of business executives who attended the 2024 Top to Top workshops, the study provides insightful advice on how to launch a new production line effectively.

Leadership and Management: The Pillars of a Smooth Vertical Startup

Even before the project starts, the groundwork for a successful vertical company is established. Respondents stressed the significance of excellent leadership a total of seven times, making it a recurring theme for a well-managed vertical firm. According to industry analysts, “having an experienced leader in that market is critical” to a successful vertical launch process.

Planning and Preparation: Charting the Course for Success

Before starting a vertical firm, it was imperative to have a thorough strategy in place; respondents stated “planning” an astounding 25 times. Project scope and requirements must be well-defined for plans to be effective. The research emphasizes how crucial it is to clearly define goals and success criteria as well as outline intended outcomes as part of the planning process.

Effective communication is crucial throughout the whole project, not just in the planning stages. Using thorough documentation and communicating expectations clearly are essential. “Lack of communication, in a timely manner, is commonly the most disruptive trait of a poor startup,” as one respondent eloquently observed.

Although the plan acts as a guide, it’s important to recognize that unanticipated difficulties might occur. In order to handle such circumstances, the research highlights the necessity of having strong mitigation techniques and backup plans.

Operational Readiness: The Key to Unlocking Efficiency

A vertical startup’s ability to function is essential to its success. In order to guarantee a seamless transition into production, respondents emphasized the significance of good training. According to one respondent, the ideal situation would have “operators trained so that vendors are not running equipment.”

Having the proper people involved from the beginning is critical to the success of the project. A committed project lead who is capable of supervising and managing every facet of the vertical startup is part of this.

Factory Acceptance Testing (FATs): Ensuring Performance Before Implementation

Respondents cited factory acceptance tests (FATs) fifteen times, indicating the importance of these tests in the vertical launch process. Both the product conditions and the ambient circumstances that would be present during real production runs should be replicated in effective FATs. One respondent highlighted that “Comprehensive FATs with actual product at rate are a key piece of testing the equipment.”

Site Acceptance Testing (SATs): Validating Performance in Your Environment

The end-user executives also emphasized the necessity of thorough site acceptance testing (SATs). A crucial element of success, according to one respondent, is “completion of the SAT with minimal OEE drop when the vendors leave installation.” (OEE is an acronym for Overall Equipment Effectiveness, a manufacturing efficiency parameter.)

Collaboration is Key: Partnering for Success

End-user executives emphasized the value of assistance during the vertical starting phase. Original equipment manufacturers (OEMs), leadership teams, and trainers are all included in this assistance. The research emphasizes how vertical startups are cross-functional and need cooperation across different departments.

However, effective vertical startups go beyond inter-organizational cooperation. As one responder put it, developing “good and close relationships with equipment vendors, service providers, and contractors” is as important.

Alignment with OEMs: Shared Vision for a Smooth Transition

The study delves into the perspectives of OEMs on the elements that lead to a prosperous vertical launch. Their top priorities coincide with end users’ interests, with training and FATs being major areas of attention. Furthermore, as per end-user replies, OEMs stress the need of efficient planning, testing, communication, and a well-defined project scope.

PMMI Business Intelligence: A Resource for Packaging and Processing Professionals

PMMI Business Intelligence is a good place to start for anybody looking for further information about packaging and processing industry sector startups and related subjects. is the place to get reports such as “2023 Achieving Vertical Startups” and “2023 Packaging and Automation in the Warehouses of the Future”.

Businesses in the packaging and processing sector may greatly raise their chances of achieving a successful vertical launch for their new production lines by putting the main lessons from this article into practice and making use of PMMI Business Intelligence’s services.

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Saiba Verma, an accomplished editor with a focus on finance and market trends, contributes to Atom News with a dedication to providing insightful and accurate business news. Saiba Verma analytical approach adds depth to our coverage, keeping our audience well-informed.