Our client, a world-class producer of pre-cooked 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 team 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 pre-cooked, 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.
After numerous successful projects at his previous company, the COO engaged POWERS to realize savings opportunities with sustainable results. We primarily focused on four functional areas: the Cutting Room, Seasoning and Ovens, Ready-to-Eat (RTE), and Planning and Scheduling.
Our business analysis revealed that managers and supervisors did not have the tools or training to manage their areas profitably or make sound business decisions.
Unbalanced production lines led to overcrewing, made worse by regularly bringing in far more temps than needed for the day’s production. Yield management was only tracked in one area instead of across the entire process. Managers didn’t pay attention to temperatures, waste or giveaway, or recognize each department’s impact on yield.
What’s more, there was a lack of collaboration between Sales, Supply Chain Management, and Operations. Sales had no accountability for inventory but pushed for higher levels to ensure orders could be filled. These inaccurate forecasts led to excess inventory.