|Reducing Product Give Away: Back to Basics|
|Written by Jim Seufert|
|Wednesday, 16 June 2010 14:24|
Reducing Product Give Away: Back to Basics
by Jim Seufert
One company only noticed the magnitude of their problem when trucks were over weight at the scale and had to return to off-load pallets. Another company calculated that they give away nearly $100,000 of product per year.
Ensuring that buyers get the exact amount of product they have purchased is a delicate balance. To accomplish this, many processors set a target weight slightly above the label weight. For example, if the label weight is 16 ounces, the production target weight may be 16.1 ounces. The ability to consistently fill to the target weight depends on a number of variables including:
Northwest Food Processors Innovation Productivity Center (IPC) has researched this issue at a number of processors. Several key lessons have emerged:
Let’s revisit our previous example, where the label weight is 16 ounces and the target weight is 16.1 ounces. If production runs result in actual weights of 16.3 ounces you are overfilling each package by an average of 0.2 ounces.
You can easily calculate total product give away by multiplying the 0.2 ounces over target weight by the number of packages produced. Assuming you ran 10,000 units, multiply that by 0.2 ounces = 2,000 ounces. That’s 125 pounds of product giveaway.
It’s difficult for people to understand the impact of 0.2 ounces per package. Instead, give them information that resonates – like total pounds and dollars. Review results with shift supervisors and line operators. Discuss that 10,000 unit run and inform them that the 0.2 ounce per package overfill means you gave away 125 pounds of product. If your ingredients cost $1 per pound, you gave away $125 of product. Extend that math out over your entire day, week or month. It adds up quickly.
The supervisor should build awareness of the issue and encourage ownership by staff on the line. For example, the supervisor should review scale log sheets and discuss variances during each product run. If a product is proving difficult to run, they should try to solve the issue then and there. This hands-on engagement builds a culture of responsibility and accountability.