Producer and Distributor of Barbeque Products

This producer of precooked barbeque products needed to reduce costs and fatten margins while increasing throughput and yield. Its disconnected, ever-changing schedules created poor production flow, resource shortages and overbuilding. Overstaffing with temporary workers and overreliance on inaccurate forecasts drove up costs. The Powers Company examined and addressed every item affecting yield, equipped managers with training and tools, and aligned resources with production. The results? A satisfying $2.2 million in projected annual savings and a hearty 1.5 percent gain in yield.

Our client produces and distributes precooked, sauced, and ready-to-heat barbeque ribs, pork and chickens. The company’s 200-plus products generate annual revenues of $150 million using approximately 350 full-time and temporary employees. However, It needed to increase yield, improve flow and reduce costs throughout the production process to meet margins while optimizing a temporary labor pool.

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Objectives

Needed to increase yield, improve flow and reduce costs throughout the production process to meet margins while optimizing a temporary labor pool.

Problems

  • Lack of collaboration among departments resulted in inaccurate forecasts which led to excess inventory.
  • Yield management was only tracked in one area instead of across the entire process.
  • Overcrewing because of unbalanced production lines and over estimates of temps needed.
  • Lacked the tools or training to manage areas profitably or make good business decisions.
  • Managers didn’t pay attention to temperatures, waste or giveaway, or recognize each department’s impact on yield.

Strategy

  • Minimize product stacking and vacuum tumbling to optimized yield
  • Align temporary workers to day’s production requirements
  • Implement yield tracking by stage to measure the gain against the new standard for each product • work with managers to set target temperatures throughout seasoning and cooking
  • Develop tools that equip supervisors to manage production over short intervals
  • Use OEE information to pinpoint improvements needed to meet their daily OEE targets

Results

$2.2 million

In projected annual savings

10%

Increase in overall equipment efficiency

27%

Improvement in ready-to-eat rework efficiency

1.5%

Gain in yield