Tag Archives: Infographic

Downtime – the dreaded halt in production that can cripple a manufacturing operation. It’s more than just an inconvenience; it’s a hidden cost that can eat away at your profits. A recent study revealed that nearly 82% of businesses have experienced unexpected downtime in the past three years, with the average incident lasting four hours and costing a staggering $2 million. The impact goes beyond just financial losses – downtime can disrupt customer deliveries, delay critical projects, and erode trust with clients.

The Potential Culprits

One major factor is neglecting preventive maintenance. Regular servicing not only keeps equipment functioning smoothly but also allows technicians to identify potential problems before they snowball into major breakdowns.

Another hidden source is outdated equipment. Obsolete machinery can be a drag on your entire production line. Imagine a slow, malfunctioning piece of equipment holding up the entire process. This can put undue stress on other machines, leading to premature wear and tear, and ultimately, more downtime. Upgrading to newer, more efficient models can significantly improve production flow and reduce the risk of breakdowns. Outdated software can also be a culprit. Running outdated software can lead to compatibility issues with newer systems and leave your facility vulnerable to security breaches.

Beyond equipment and software, a lack of proper training for your workforce can also contribute to downtime. If operators don’t fully understand how a machine works, they might misuse it, leading to errors and breakdowns. Investing in comprehensive training empowers your employees with the knowledge and skills they need to operate machinery safely and efficiently, minimizing the risk of operator-induced downtime.

Finally, the importance of data tracking cannot be overstated. Keeping detailed logs of equipment issues and production hiccups allows you to identify recurring problems and implement preventative measures. Think of it as a historical record that helps you anticipate and address potential bottlenecks before they derail your production schedule.

Finding the Right Solution for You

The good news is that there are steps you can take to combat downtime and keep your production lines humming. Conducting risk audits to identify potential problems, installing sensors to monitor equipment health (like a torque transducer that detects excessive force on a rotating shaft), and implementing a comprehensive preventive maintenance program are all crucial steps in the battle against downtime.

Investing in employee training and partnering with reliable third-party service providers can further strengthen your defenses. By adopting a proactive approach to maintenance and addressing the root causes of downtime, you can significantly reduce disruptions and ensure your manufacturing operation runs smoothly and efficiently.

Want to learn more about the specific costs associated with different downtime causes? The following infographic breaks down the financial impact of various downtime triggers, helping you identify areas for improvement and optimize your production process for maximum uptime.

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In today’s competitive business landscape, keeping labor costs under control is a constant concern. However, this pursuit of cost-efficiency must never come at the expense of safety. Here’s how businesses can strike a balance between these two priorities.

Standardization and Management

Standardized labor processes are the cornerstone of a safe and productive work environment. By establishing clear, well-documented procedures for each task, companies minimize confusion and errors, while also ensuring consistent quality. This translates to increased efficiency, reduced rework, and ultimately, lower labor costs.

Complementing standardized processes with a robust training program further strengthens this foundation. Comprehensive training, encompassing both initial onboarding and ongoing professional development, equips employees with the skills and knowledge necessary to perform their duties safely and effectively. This not only reduces the risk of accidents, but also empowers employees to identify and address potential issues before they escalate into costly problems.

Labor costs can be further optimized by taking a strategic approach to staff management. Reviewing staff schedules regularly and adjusting them based on actual workload can prevent unnecessary overtime and ensure employees are not overscheduled. Additionally, exploring options for part-time positions or flexible work arrangements can contribute to optimizing labor costs.

Technology and Lean Practices

Investing in automation technology can be a strategic move towards reducing labor costs while maintaining safety. Automated equipment can handle repetitive or hazardous tasks, freeing up employees to focus on more complex activities. This not only improves overall productivity but also reduces the risk of workplace injuries associated with repetitive motions or exposure to dangerous materials.

Lean manufacturing principles, which emphasize eliminating waste and maximizing value, can also offer significant cost savings. By taking a critical look at existing workflows and identifying areas for improvement, companies can reduce wasted time and resources, leading to a leaner, more efficient operation.

Choosing the Right Tools

The right tools for the job are not just essential for efficiency, but also for safety. For instance, opting for quality-assured scaffolding components like a ringlock modular system, compared to a cuplock system, can significantly impact labor costs in the long run. Ringlock systems generally require less assembly time, facilitating faster project completion and reducing labor hours. Furthermore, their robust design often translates to fewer repairs and maintenance needs, further reducing overall costs.

Implementing advanced software programs can also significantly improve various aspects of business operations, ultimately impacting labor costs. Digital tools can optimize scheduling processes, enhance production visibility, improve communication among teams, and streamline training programs.

The infographic below delves deeper into each of these strategies, providing a comprehensive roadmap to reducing labor costs while prioritizing safety. Remember, a safe and well-trained workforce is a productive one. By implementing these strategies and fostering a culture of safety and efficiency, businesses can create a win-win situation for both employees and the company’s bottom line.

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In the food processing industry, optimal efficiency is the key to keeping those razor-thin margins in the black. Now, with ongoing challenges like supply chain delays and changing markets, it’s even more important.

Efficient processes lead to reduced operating costs, improved yield and throughput, and more control over your management systems.

The following graphic provides seven ways to improve your efficiency in food processing:

1. Identify loss points

Where are the opportunities for greater efficiency? Look at the equipment, like the grinder, blenders, transfer belts, oven, steamer, even the transportation and logistics. Where can you save time and money? A thorough loss point analysis can uncover key areas where more efficiency can be achieved.

2. Recipe/formula control

The goal here is to ensure accurate measurement of ingredients. To improve processes, use volumetric measuring, metering tools and “right size” recipes to match ingredient containers. It’s about containing costs and promoting formula consistency.

3. Calibrate measuring devices

You won’t get accurate measurements if the measuring devices are not functioning properly. All devices that provide “factual” information must be accurate! It means verifying the calibration of scales, load cells, meters and equipment speeds, temperatures, tolerances and capabilities.

4. Process control

Remember, any knob, dial, meter, switch or button can vary the process. It’s essential to understand what they control and what they reveal. Generate a thorough process run history to define the relationship (or correlation) of each control point to the end product.

5. Measure actual yield vs. plan

Challenge the current paradigms. How does yield loss vary when raw temps vary? How much do you lose if you extend cooking times? Are you batching properly? Focus on maintaining tolerances and capabilities, and monitor the causes of variation. It makes the invisible visible!

6. Audit fill weights

This is about understanding overfills. In the industry, they call it “the giveaway,” which happens when more product is added to a package to compensate for weight loss in processing. Shaving a bit off of each overfill can add up to huge savings.

7. Recovery and resolution

Review, report, resolve! Do a thorough root cause analysis, implement short-term fixes immediately, and seek to eliminate waste completely in the long run. Continuous improvement is the goal! Find opportunities for greater efficiency and help implement them.

It’s about developing a plan to measure performance, and ultimately getting to a “zero-loss based” yield. The more quickly and efficiently you get the job done, the sooner your product can be in the hands of the consumer. Questions? Contact us today.

For more information about how Food & Beverage consultants can significantly reduce your operating costs and improve productivity, read this eBook:

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What’s keeping manufacturing CEOs up at night? From supply chain disruptions to a disengaged workforce and growing skills gap, there are challenges aplenty plaguing leadership teams. Here are the top five manufacturing issues along with solutions from USC Consulting Group that will help them sleep a little easier.

Problem: Retiring workforce

My best shift supervisor is retiring next month! He knows everything there is to know about the line. How can I possibly replace him?

“The median age of manufacturing workers is 48 and continues to grow older.”

Solution: Capture that knowledge!

Before your seasoned vets retire, create mentorship programs, have roundtable discussions and update manuals with their hard-earned know-how.

Problem: Skills gap + Jobs gap

I have positions to fill but I’m not finding any qualified candidates! How am I supposed to get the job done?

“Manufacturers will have 2 million jobs to fill by 2030. But there’s a skills gap out there. A sea of open jobs and few skilled people to fill them is a one-two punch.”

Solution: Build training into your budget

Skill them up yourself! Invest in training for new hires and partner with a local trade school or community college to target new grads.

Problem: Disengaged employees

Are my employees happy? It’s like they’re just going through the motions. Are they going to quit?

“Only 36% of U.S. employees are engaged at work and 74% are actively looking for a new job at any given time.”

Solution: Walk the shop floor

Talk to the team, ask how things are going and how you can help. If they’re short-handed, roll up your sleeves! Also, promote from within and invest in career development! It’s a proven way to build morale and engagement.

Problem: Supply chain disruptions

My line was down AGAIN because our overseas supply was stuck at a port. Again! We have high customer demand but can’t meet it because we can’t get the supplies we need!

“A 400% increase in shipping costs from China and a 45% increase in ocean freight wait times is expected to continue for 6 to 12 months, if not longer.”

Solution: Reshoring      

It has long been suggested as idealistic and beneficial for the country, yet unrealistic. That is, until now. It’s time. Reshoring is a way for U.S. manufacturers to invest in the country and claim valuable subsidies, while also shielding themselves from any potential global supply chain issues.

Problem: Inventory management

All of my departments have a different view on inventory management! Some want excess inventory. Others want it just in time. Do we have enough? Too much?

Solution: Sales, Inventory & Operations Planning (SIOP)

SIOP expands on S&OP by adding a crucial component: Inventory. It helps you wrangle your inventory management and achieve the optimal supply balance.

Want to learn more? Read What’s Keeping You Up at Night? The Main Concerns of Top Executives.

These aren’t the only challenges keeping CEOs up at night. At USC Consulting Group, we have more than 50 years of experience helping manufacturers find opportunities for greater efficiency and productivity. Call us today to talk about how we can help you get a good night’s sleep.

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Everyday we set out to conquer life in various ways. We conquer fears, objections, and challenges. It is how we overcome these obstacles that defines are character and successes.

There was a famous historical figure with the moniker William the Conqueror  who set out on a conquest which changed the face of history. While we are not conquering nations in the name of our country, we do find victories everyday for ourselves and our companies.

The following is a story illustrating one such victory overcoming operational issues that many others can also achieve themselves…

This is the story of William the Conqueror. No, not the 11^th century figure, but William the VP of Operations at Acme Widget Company. He is under siege with problems that are eating into operational efficiency, causing delays and slowing down his throughput.

There’s trouble on the line. Machinery breakdowns are causing delays. And William is struggling to hire and retain skilled employees to get the job done.

The result of this operational onslaught? Acme Widget Company is not meeting its demand at a critical time. William is getting frustrated. So is his boss.

So William called USC Consulting Group — an operations management consulting firm that has been helping companies identify trouble spots, reduce operating costs, and increase efficiency and throughput for more than 50 years.

Working with William, USC Consulting Group investigated the Five M’s:

1. Machine (Does it need maintenance?)

2. Methods (Can you make processes more efficient?)

3. Materials (Supply chain bottlenecks?)

4. Measurements (Are we measuring the right things?)

5. Man or Woman power (Are your people skilled and trained?)

Focusing on the Five M’s and with USC’s help, William and his team got things running smoothly, with improved efficiency and increased throughput. William’s boss was so pleased with the results that he promoted William to COO*. William had, indeed, conquered his operational issues.

If you are experiencing operational issues like William, give USC Consulting Group a call today and we will put our expertise to work for you, too. *You may not be promoted to COO, but you will increase your operation’s efficiency.

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Disruptive supply chains cause uncertainty. This leads to disjointed internal functions and frustration. And although there have been significant improvements with technology, supply chain disruptions are still managed by people.

Having good relationships with your strategic suppliers will help ensure someone will answer your call regarding delayed delivery dates, but that’s not enough to ensure supply continuity in our increasingly complex and disruptive supply chains.

There are five types of solutions supply chain managers can employ to decrease uncertainty and to improve reliability in their supply chain. We have compiled them into this infographic:

• TIME
• PRICING
• PRODUCTION
• INVENTORY
• INFORMATION

Each type of solution can be effective, however each has its downside to watch out for.

Time

Expediting freight or delaying order fulfillment are commonly used tactics.

What to watch for: If your customers have other options and low customer loyalty, delaying delivery dates can significantly reduce your revenues. If you have a low margin product, premium freight can wipe out profits.

Pricing

Prices for hard-to-get commodities skyrocket during times of uncertain supply, contributing to cost inflation.

What to watch for: If inflated material costs can’t be passed on to customers, margins suffer.

Production

Production solutions to supply disruptions include flexible manufacturing and quick changeover practices, having alternative suppliers and substitute materials, reducing quality rejects in order to have more saleable product, and improving the source, make, and deliver cycle times.

What to watch for: Production solutions often take time to develop, which is why they are effective during times of certain supply, but when dealing with surprising disruptions, they’re often too little, too late.

Inventory

Stocking up on inventory is a common response to disruptions, however warehouse and storage space can be a constraint requiring investment in facilities and equipment.

What to watch for: Excessive inventories drain cash and tie up working capital. A better practice is to use statistical analysis to evaluate how changing lead times are affecting the reorder points and order quantities in your ERP system.

Information

Uncertainty is caused by lack of information. Embed a strong SIOP process — Sales, Inventory, and Operations Planning. Conduct value stream maps to understand the tiered network of the supply chain. Implement strong supplier scorecards, and have a robust risk register process where there are early warning systems, contract optionality, and redundancies in the supply base.

What to watch for: Information solutions are sometimes viewed as expensive, however they are rarely more expensive than increasing investments in facilities and equipment, or habitually discounting obsolete inventory, or perpetually incurring premium freight.

If your company needs help reducing supply disruptions, turn to the supply chain experts at USC Consulting Group. We have been empowering our clients’ performance for over 50 years.

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