|
Posted on Tuesday, September, 30, 2008, 3:41PM Food processors today are threatened by unprecedented industry challenges, including record-high costs for materials, energy, transportation and labor. Under mounting pressure to maintain profit margins, food companies announce extreme measures every week. Dramatic hikes in consumer product prices, reformulations using cheaper, lower-quality ingredients and even plant closings are now common subjects of news headlines.
To cope with these increasing external cost challenges, progressive food companies are exploring previously untapped opportunities for margin improvement, right within their existing factories. They are measuring efficiency gains and production cost reductions ranging from 15 to 40 percent and margin improvements of five percent and more, and they are achieving these results in less than six months.
This paper presents an executive perspective on the underlying challenges in the food industry. It suggests a practical agenda for a strategic and tactical response through systematic introduction of lean and continuous improvement techniques and daily operating best practices. The result is breakthrough performance improvements due to engaged employees working with real-time operational performance data. With real examples from food processors, the paper discusses how use of techniques under the heading of Breakthrough Performance combined with measures of people-based performance that are used widely in other industries has initiated a quiet revolution in food plants in the U.S. and Europe during the past 18 months.
More resources from
CDC Software Surviving the Perfect Storm in the Food Industry
White Papers :: In a “perfect storm” of economic conditions, food manufacturers must regain profitability from within their plants. Bay Valley Foods Raises OEE and Profits with CDC Factory
Product Case Study :: Bay Valley Foods is recovering millions in profits, by employing progressive strategies to raise OEE- Breyers Yogurt Gains an Extra Production Day with CDC Factory
Product Case Study :: Breyers Yogurt is gaining profitability by decreasing changeover times and dramatically increasing production capacity. - Greencore Group Reduces Labor Costs with CDC Factory
Product Case Study :: Greencore Group adds to the profitability bottom line by eliminating re-work, changeovers, and downtime.  Video Testimonial: How Can Accountability on the Shop Floor Impact Profit?
Product Case Study :: Bob Philip, Production Manager, Mendota, Illinois, tells how OEE increases when operators are accountable. Enterprise Manufacturing Intelligence: Getting Faster Results and Higher Productivity
Video/Podcasts :: While the people on the shop floor take more control over their efficiency and production, management also has consistent control measures. The result is not only higher profitability now, but a more competitive and performance-driven culture to sustain that profitability for the future.
|