Food processing | Profit under pressure
Yield loss you measure but can’t locate
Yield loss is not a production problem. It is a profit problem.
Material costs run 50 to 70% of sales in most food plants. Yield determines how much of that material becomes sellable product, which makes it the largest margin lever on the P&L. Nearly every processor measures it.
Measuring it isn't the problem. The problem is knowing which line, which shift, and why, while the run is still going. Loss you can't locate is loss you keep paying for.
This article covers three places where yield hides: shrink, giveaway, and rework.
3 questions to ask in your food plant
- When rework occurs, can your team identify the cause, or only the cost after production is complete?
- How many weeks go by between a problem happening on the floor and finance seeing it as a loss?
- How many systems and spreadsheets do you have to use to find the losses in your process?
+4 more in the Document
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