Manufacturing News

Are you best-in-class or a laggard?

Most studies are based on interviewees’ conjecture and opinion. But a best-in-class benchmark report of food and beverage packaging operations conducted by Informance sampled actual production data from customers’ 141 packaging lines worldwide using the company’s Enterprise Manufacturing Intelligence Suite. The study reveals polar results. For example, best-in-class manufacturers are 22% more productive because they identify manufacturing losses at a rate 45 times greater than laggard processors. Why? Successful manufacturers are able to measure, manage and mitigate the problems that result in capacity loss, quality loss and poor asset utilization.

Manufacturers typically achieve competitive advantage by concentrating on “operational excellence” initiatives, which include Six Sigma, lean manufacturing, total productive maintenance and other continuous improvement approaches. Manufacturers want to unlock capacity, reduce inventory and labor costs while they increase productivity without additional expense.  To meet these goals, processors measure key performance indicators (KPIs).
Packaging lines in the food and beverage industry incur more than 18,000 interruptions of less than ten minutes each per year, an equivalent of seven per hour. Best-in-class manufacturers approach 80% overall equipment effectiveness (OEE) with asset utilization rates as high as 97%. Laggards’ OEE was typically in the 25 to 35% range with asset utilization hovering around 27%. OEE, operational availability and asset utilization were top KPIs used in the study to determine best-in-class lines.
To determine a processor’s competitive position, each KPI from each company was ranked from best to worst score. Organizations in the top 20th percentile were defined best-in-class, the middle 50th percentile as average and the bottom 30th percentile as laggards. Based on best practices from TPM practitioners, the study defines a set of six loss categories for the food and beverage industry. To read the executive summary, visit  

Did you enjoy this article? Click here to subscribe to Food Engineering Magazine.

You must login or register in order to post a comment.



Image Galleries

IPPE 2015

The 2015 International Production and Processing Expo (IPPE) was held in Atlanta at the Georgia World Congress Center, Jan. 27-29. More than 30,000 poultry, meat and feed industry representatives attended the event to interact with the 1,288 exhibitors on the show floor that covered more than 490,000 net square feet. At the show exhibitors demonstrated innovations in equipment, supplies and services utilized by firm in the production and processing of meat, poultry, eggs and feed products.


Burns & McDonnell project manager RJ Hope and senior project engineer Justin Hamilton discuss the distinctions between Food Safety and Food Defense as well as the implications for food manufacturers of the Food Safety Modernization Act.
More Podcasts

Food Engineering

Food Engineering February 2015 Cover

2015 February

In this February 2015 issue of Food Engineering, we explore how energy waste caused by leaks in compressed air, steam and water or faulty building insulation/seals can be reduced with the right equipment and knowledge.

Table Of Contents Subscribe

FSMA Audit

What is the is most important step you have taken to become ready for a FSMA audit?
View Results Poll Archive


Food Authentication Using Bioorganic Molecules

This text provides critical tools and data needed to augment routine food analysis and enhance food safety by aiding in the detection of counterfeit, and potentially deleterious, foods.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.


FE recent tweets

facebook_40.pngtwitter_40px.pngyoutube_40px.png linkedin_40px.pngGoogle +

Food Master

Food Engineering Food Master 2015Food Master 2015 is now available!

Where the buying process begins in the food and beverage manufacturing market. 

Visit to learn more.