Supermarket Perimeter - June 2019 - 63

OPERATIONS

indicators out there, and all
the acronyms can be impossible to remember," says Rowdy
Brixey, president, BEST: Brixey
Engineering Strategies & Training,
based in Kansas City, Missouri.
Most plants rely on operating
equipment effectiveness (OEE),
which measures how well a piece
of equipment or system works
compared to its full potential.
However, Brixey has a few
favorites.
One acronym, LBPM-D, stands
for "pounds per manhour for direct labor." To determine this KPI,
one can total the gross production pounds for products made
on a line by week, month or
another period. Next, divide this
number by the total payroll hours
for the direct labor responsible
for manufacturing those items
during the same timeframe.
"This KPI will show whether
you have extra personnel on the
line compared to its historical run
rate," Brixey says. "This format
can also be used for measuring

total plant or any indirect labor.
Trending these numbers can
really uncover opportunities for
reducing overhead and increasing margin."
Another acronym is YOY CPLB.
After calculating "year-over-year
cost per pound" for a specific
time period, one can adjust for
inflation, raises, utilities and other
variables the operations team
typically can't control. Then one
can compare the year-over-year
numbers based on waste, scaling,
downtime, overtime and other
controllable factors.

Long and short of it
Such analysis of key data allows
operators to take a proactive approach in refining their
operations. On the production
floor, however, line efficiency can quietly creep beneath
acceptable thresholds set by the
facility. Crunching such KPIs in
real time provides line workers
with the tools to take immediate corrective action, even if it's

a band-aid solution, says Bob
White, president of Focus Works,
a food manufacturing and food
safety software company based
in Patchogue, New York.
"The best [system] is having
alerts when numbers reach
warning levels such as 85%
efficiency," White says. "You have
to realize that you start at 100%
efficiency, and as the day wears
on, it can only decrease because
there's no making up for lost time
and material."
Orlando Baking picks 85% as
its realistic performance production efficiency goal, whether it's
measured in pounds of product
or cases packed.
"If it's 85% or higher, employees
will write that number in green,"
Stiffler says. "If it's 84% or lower,
they write it in red."
To accurately monitor waste,
for instance, Orlando Baking
tracks it not only per hour but
also per shift.
"Let's say our goal is 50 lbs
or less waste per hour or up to
400 lbs per shift," Stiffler says. "If
production employees run 49 lbs
of waste per hour, they would all
be green. But let's say they ran
100 lbs of waste on the last hour;
they'd be green all day except for
the last hour, and unfortunately
at that point, they would be over
for the shift. The total number
then would be red."

Investing in better
performance

Real-time data provide the visual tools to continuously monitor KPIs
and how a production line's performance compares to expectations.

Unearthing the root causes
of unexpected downtime
can help identify and justify
capital investments to enhance
productivity and bolster yield in
the long run.
Orlando Baking is harnessing
its data to develop a potential
shopping list for the International
Baking Industry Exposition (IBIE),
which will be held Sept. 7-11 in
Las Vegas.

www.supermarketperimeter.com

"OEE tells us about our overall
equipment effectiveness, and
where we should expand," Stiffler
says. "If we needed to expand
production in our plant, it allows
us to focus in on how to do that
to free up more space and time."
For identifying specific investments, Brixey recommends using
a capacity report that pinpoints
bottlenecks. First, calculate the
maximum run rate on each piece
of major equipment to discover
the lowest limiting factor for each
product variety or pan.
"The best returns usually come
from focusing on the items with
the highest volume," he says.
"Most times you'll find that plants
have slowed down their lines to
make running easier versus fixing
troublesome equipment."
Capital projects with significant
returns often come from replacing one piece of equipment or a
couple of assets that drastically
limit the line's throughout by performing well below that of many
other machines.
"The capacity report and bottleneck findings can lead you to a
strong understanding of whether
you need to replace select assets
or the entire line," Brixey says.
"Having this report completed
in advance of IBIE can help you
maximize how you spend your
time while in 'the land of plenty.'"
White cautions producers
against purchasing new equipment by price comparison alone.
"Also consider the cost of ownership," he says. "They should
network with other bakers to
find out not only the reliability of
the equipment but also the ease
of maintenance and repairs and
cost/availability of spare parts.
Purchasers should also consider
the availability of local service."
Taking everything into consideration is how to maximize
efficiency and attain peak performance over the long run.
JUNE 2019 - 63


http://www.supermarketperimeter.com

Supermarket Perimeter - June 2019

Table of Contents for the Digital Edition of Supermarket Perimeter - June 2019

Supermarket Perimeter - June 2019
Editor's Note - Protein choices for all
Contents
The Wire - Organic food sales approach $48 billion
New ShopRite store features culinary center
Kroger piloting new Home Chef meals
WASTE NOT (as much)
Local focus
Bakery - Decorating trends
Sweet goods
Deli - TAILGATING, PICNICS
Sandwiches
Meat & Poultry - Protein alternatives
Sausage
Produce - Ripening
Avocados
Seafood - Cod, pollock, haddock
Food safety - Staying INSPECTION-READY
COMMISSARY INSIDER - June 2019
PORTION CONTROL
SPOTLIGHT - SALADS
TECHNOLOGY - RECIPE MANAGEMENT
OPERATIONS - DIVING INTO LINE DATA TO HIT OPERATING GOALS
Product Showcase
Advertisers
Fresh Takes
Supermarket Perimeter - June 2019 - Supermarket Perimeter - June 2019
Supermarket Perimeter - June 2019 - Supermarket Perimeter - June 2019
Supermarket Perimeter - June 2019 - 2
Supermarket Perimeter - June 2019 - Editor's Note - Protein choices for all
Supermarket Perimeter - June 2019 - Contents
Supermarket Perimeter - June 2019 - 5
Supermarket Perimeter - June 2019 - Kroger piloting new Home Chef meals
Supermarket Perimeter - June 2019 - 7
Supermarket Perimeter - June 2019 - WASTE NOT (as much)
Supermarket Perimeter - June 2019 - 9
Supermarket Perimeter - June 2019 - 10
Supermarket Perimeter - June 2019 - 11
Supermarket Perimeter - June 2019 - 12
Supermarket Perimeter - June 2019 - 13
Supermarket Perimeter - June 2019 - 14
Supermarket Perimeter - June 2019 - 15
Supermarket Perimeter - June 2019 - Local focus
Supermarket Perimeter - June 2019 - 17
Supermarket Perimeter - June 2019 - 18
Supermarket Perimeter - June 2019 - 19
Supermarket Perimeter - June 2019 - 20
Supermarket Perimeter - June 2019 - 21
Supermarket Perimeter - June 2019 - Bakery - Decorating trends
Supermarket Perimeter - June 2019 - 23
Supermarket Perimeter - June 2019 - 24
Supermarket Perimeter - June 2019 - 25
Supermarket Perimeter - June 2019 - Sweet goods
Supermarket Perimeter - June 2019 - 27
Supermarket Perimeter - June 2019 - 28
Supermarket Perimeter - June 2019 - 29
Supermarket Perimeter - June 2019 - Deli - TAILGATING, PICNICS
Supermarket Perimeter - June 2019 - 31
Supermarket Perimeter - June 2019 - Sandwiches
Supermarket Perimeter - June 2019 - 33
Supermarket Perimeter - June 2019 - 34
Supermarket Perimeter - June 2019 - 35
Supermarket Perimeter - June 2019 - Meat & Poultry - Protein alternatives
Supermarket Perimeter - June 2019 - 37
Supermarket Perimeter - June 2019 - 38
Supermarket Perimeter - June 2019 - 39
Supermarket Perimeter - June 2019 - Sausage
Supermarket Perimeter - June 2019 - 41
Supermarket Perimeter - June 2019 - 42
Supermarket Perimeter - June 2019 - 43
Supermarket Perimeter - June 2019 - Produce - Ripening
Supermarket Perimeter - June 2019 - 45
Supermarket Perimeter - June 2019 - Avocados
Supermarket Perimeter - June 2019 - 47
Supermarket Perimeter - June 2019 - Seafood - Cod, pollock, haddock
Supermarket Perimeter - June 2019 - 49
Supermarket Perimeter - June 2019 - Food safety - Staying INSPECTION-READY
Supermarket Perimeter - June 2019 - 51
Supermarket Perimeter - June 2019 - 52
Supermarket Perimeter - June 2019 - PORTION CONTROL
Supermarket Perimeter - June 2019 - 54
Supermarket Perimeter - June 2019 - 55
Supermarket Perimeter - June 2019 - SPOTLIGHT - SALADS
Supermarket Perimeter - June 2019 - 57
Supermarket Perimeter - June 2019 - 58
Supermarket Perimeter - June 2019 - 59
Supermarket Perimeter - June 2019 - TECHNOLOGY - RECIPE MANAGEMENT
Supermarket Perimeter - June 2019 - 61
Supermarket Perimeter - June 2019 - OPERATIONS - DIVING INTO LINE DATA TO HIT OPERATING GOALS
Supermarket Perimeter - June 2019 - 63
Supermarket Perimeter - June 2019 - Product Showcase
Supermarket Perimeter - June 2019 - Advertisers
Supermarket Perimeter - June 2019 - Fresh Takes
Supermarket Perimeter - June 2019 - 67
Supermarket Perimeter - June 2019 - 68
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-july-2022
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-june-2022
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-may-2022
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-april-2022
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-march-2022
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-february-2022
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-january-2022
https://digital.supermarketperimeter.com/sosland/sp/-supermarket-perimeter-december-2021
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-november-2021
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-october-2021
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-september-2021
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-august-2021
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-july-2021
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-june-2021
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-may-2021
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-april-2021
https://digital.supermarketperimeter.com/sosland/sp/supermarket-perimeter-march-2021
https://digital.supermarketperimeter.com/sosland/sp/2021_02_01
https://digital.supermarketperimeter.com/sosland/sp/2021_01_01
https://digital.supermarketperimeter.com/sosland/sp/2020_12_01
https://digital.supermarketperimeter.com/sosland/sp/2020_11_01
https://digital.supermarketperimeter.com/sosland/sp/2020_10_01
https://digital.supermarketperimeter.com/sosland/sp/2020_09_01
https://digital.supermarketperimeter.com/sosland/sp/2020_08_01
https://digital.supermarketperimeter.com/sosland/sp/2020_07_01
https://digital.supermarketperimeter.com/sosland/sp/2020_06_01
https://digital.supermarketperimeter.com/sosland/sp/2020_05_01
https://digital.supermarketperimeter.com/sosland/sp/2020_04_01
https://digital.supermarketperimeter.com/sosland/sp/2020_03_01
https://digital.supermarketperimeter.com/sosland/sp/2020_02_01
https://digital.supermarketperimeter.com/sosland/sp/2020_01_01
https://digital.supermarketperimeter.com/sosland/sp/2019_12_01
https://digital.supermarketperimeter.com/sosland/sp/2019_11_01
https://digital.supermarketperimeter.com/sosland/sp/2019_10_01
https://digital.supermarketperimeter.com/sosland/sp/2019_09_01
https://digital.supermarketperimeter.com/sosland/sp/2019_08_01
https://digital.supermarketperimeter.com/sosland/sp/2019_07_01
https://digital.supermarketperimeter.com/sosland/sp/2019_06_01
https://digital.supermarketperimeter.com/sosland/sp/2019_05_01
https://digital.supermarketperimeter.com/sosland/sp/2019_04_01
https://digital.supermarketperimeter.com/sosland/sp/2019_03_01
https://digital.supermarketperimeter.com/sosland/sp/2019_02_01
https://digital.supermarketperimeter.com/sosland/sp/2019_01_01
https://www.nxtbookmedia.com