Food Engineering logo
  • Sign In
  • Create Account
  • Sign Out
  • My Account
  • NEWS
  • PRODUCTS
  • TOPICS
  • EXCLUSIVES
  • MEDIA
  • FOOD MASTER
  • EVENTS
  • RESOURCES
  • EMAGAZINE
  • SIGN UP!
cart
facebook twitter linkedin youtube
  • NEWS
  • Latest Headlines
  • Manufacturing News
  • People & Industry News
  • Plant Openings
  • Recalls
  • Regulatory Watch
  • Supplier News
  • PRODUCTS
  • New Plant Products
  • New Retail Products
  • TOPICS
  • Alternative Protein
  • Automation
  • Cannabis
  • Cleaning | Sanitation
  • Fabulous Food Plants
  • Food Safety
  • Maintenance Strategies
  • OEE
  • Packaging
  • Sustainability
  • More
  • EXCLUSIVES
  • Plant Construction Survey
  • Plant of the Year
  • Sustainable Plant of the Year
  • State of Food Manufacturing
  • Top 100 Food & Beverage Companies
  • MEDIA
  • Podcasts
  • Videos
  • Webinars
  • White Papers
  • EVENTS
  • Food Automation & Manufacturing Symposium and Expo
  • Industry Events
  • RESOURCES
  • eNewsletter
  • Custom Content & Marketing Services
  • FE Store
  • Government Links
  • Industry Associations
  • Market Research
  • Classified Ads
  • EMAGAZINE
  • eMagazine
  • Archive Issue
  • Advertise
Food Engineering logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Food Engineering logo
  • NEWS
    • Latest Headlines
    • Manufacturing News
    • People & Industry News
    • Plant Openings
    • Recalls
    • Regulatory Watch
    • Supplier News
  • PRODUCTS
    • New Plant Products
    • New Retail Products
  • TOPICS
    • Alternative Protein
    • Automation
    • Cannabis
    • Cleaning | Sanitation
    • Fabulous Food Plants
    • Food Safety
    • Maintenance Strategies
    • OEE
    • Packaging
    • Sustainability
    • More
  • EXCLUSIVES
    • Plant Construction Survey
    • Plant of the Year
    • Sustainable Plant of the Year
    • State of Food Manufacturing
    • Top 100 Food & Beverage Companies
  • MEDIA
    • Podcasts
    • Videos
    • Webinars
    • White Papers
  • FOOD MASTER
  • EVENTS
    • Food Automation & Manufacturing Symposium and Expo
    • Industry Events
  • RESOURCES
    • eNewsletter
    • Custom Content & Marketing Services
    • FE Store
    • Government Links
    • Industry Associations
    • Market Research
    • Classified Ads
  • EMAGAZINE
    • eMagazine
    • Archive Issue
    • Advertise
  • SIGN UP!

Plant excellence, by the numbers

By Olin Thompson
January 7, 2006


Olin Thompson
How do you define excellence? Long runs, high capacity utilization and low production cost? Perhaps, but in today's market, the ability to rapidly and profitably respond to customer and market demands is a better indicator of true plant excellence. As such, continuous improvement cost reduction programs are common, but are they effective?



Jane Biddle, vice president of manufacturing research for the Aberdeen Group recently authored a study discussing the impact of metrics-driven improvement programs in process companies, including the food industry. The study, The Process Manufacturing Excellence Benchmark Report, discussed industry issues, technologies, results and recommendations.

Focusing on the use of metrics as a business improvement tool, the report shows a direct correlation between the length of time these programs have been in place and business improvements. "A major factor that sets the best-in-class apart from the industry average companies is the length of time that they have had these programs in place," says Biddle. "While 75% of the best-in-class have synchronized business and plant metrics for two or more years, only 22% of the industry average companies have programs in place for that length of time."

When discussing metrics with various consultants and software vendors, the vocabulary may vary. Business Intelligence (BI) and Business Performance Monitoring (BPM) are common terms referring to measuring your business. A Key Performance Indicator (KPI) is a common term for a specific number or metric.

Regardless of what the measurements are called, a key issue is your system's ability to automatically generate these numbers as a by-product of your daily operations. A system should also support "drill down," the ability to go into greater detail and determine the "why" of business issues.



The common strategy of metrics-based programs is summed up with the phrase, "You improve what you measure." In most food plants, the two most common focus points are cost reduction and on-time delivery, which can be measured in a number of ways. Inventory reductions are the most common cost reduction effort and are usually measured by inventory turns for each type of inventory (packaging, ingredient, finished product, MRO, etc.). Maintenance work can be measured by the ratio of planned to unplanned downtime.

On-time delivery, however, is best measured against the original customer request date instead of the order commitment date. Best-in-class companies even take it one step further. They measure against the customer delivery date as supplied by their logistics providers (as opposed to ship dates versus planned ship dates). In this way, you can precisely determine when the product reached your customer, which is ultimately a factor in how he/she evaluates your service.

Best-in-class companies monitor these figures constantly at various levels of detail and can use these metrics to identify and improve areas of competitive advantage and thus measure and direct continuous improvement programs. And what if you aren't currently using metrics? Biddle suggests you "concentrate on a few, key measurements and show improvements to gain an understanding in the use of metrics. [If you have some] programs in place, concentrate on specific themes, driven by the corporate strategy."

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Olin Thompson was a Contributing Editor for FE.

Recommended Content

JOIN TODAY
to unlock your recommendations.

Already have an account? Sign In

  • Global Organic Food & Beverage Market to Grow

    Global Organic Food & Beverage Market to Grow

    With a CAGR of 12.07%, Bonafide Research estimates this...
    Latest headlines
  • skilled MEP worker

    Predicting Food and Beverage Manufacturing Trends for 2024

    The two words that should be kept in mind are labor and...
    Automation
    By: Derrick Teal
  • cleaning and sanitation

    The basics of cleaning and sanitation in food plants

    Sanitation maintains or restores a state of cleanliness...
    Cleaning | Sanitation
    By: Richard F. Stier
Manage My Account
  • eMagazine
  • eNewsletter
  • Online Registration
  • Manage My Preferences
  • Customer Service

Celebrating Women in Engineering: Shalima Sreenath

Celebrating Women in Engineering: Shalima Sreenath

Celebrating Women in Engineering: Samara Heaggans

Celebrating Women in Engineering: Samara Heaggans

Food Plant Openings and Expansions May 2025

Food Plant Openings and Expansions May 2025

OT Cybersecurity Vulnerabilities in Food Manufacturing Facilities

OT Cybersecurity Vulnerabilities in Food Manufacturing Facilities

More Videos

Popular Stories

mechanical and chemical recycling

Clean Label Packaging Expands to Include Sustainability Considerations

Bottling machine

How Sensing Technologies Can Help Avoid Food and Water Waste

Yoplait Protein Yogurt

General Mills Sells North American Yogurt Business

CHECK OUT OUR NEW ESSENTIAL TOPICS

Alternative ProteinAutomationCleaning/SanitationFabulous Food Plants

Food SafetyMaintenance StrategiesOEE

PackagingSustainability

Events

June 17, 2025

Refrigerated & Frozen Foods’ State of the Cold Chain

On Demand Kelley Rodriguez, Editor in Chief of Refrigerated & Frozen Foods, will be joined in this 60-minute webinar by industry experts to help unpack the latest research.

July 10, 2025

Smarter Innovation With Practical AI: How to Stay Agile in Uncertain Times

Regulatory updates, supply chain shifts and evolving consumer demands keep the food and beverage industry in a state of constant change.

View All Submit An Event

Products

Recent Advances in Ready-to-Eat Food Technology

Recent Advances in Ready-to-Eat Food Technology

See More Products

Plant of the Year

Related Articles

  • Two bulk and three bag packaging lines accurately fill 25- or 50-lb. bags or 2,000-lb. totes before sealing, labeling and palletizing. Photo by Candy Padilla.

    Plant of the Year 2014: Excellence and efficiency at Blue Diamond

    See More
  • graphic chart files bar graph

    Energy management: crunching the numbers

    See More
  • Simulation Helps 'Crunch' the Numbers

    See More
×

Elevate your expertise in food engineering with unparalleled insights and connections.

Get the latest industry updates tailored your way.

JOIN TODAY!
  • RESOURCES
    • Advertise
    • Contact Us
    • Food Master
    • Store
    • Want More
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • eNewsletter
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing

Food Engineering logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Food Engineering logo
  • NEWS
    • Latest Headlines
    • Manufacturing News
    • People & Industry News
    • Plant Openings
    • Recalls
    • Regulatory Watch
    • Supplier News
  • PRODUCTS
    • New Plant Products
    • New Retail Products
  • TOPICS
    • Alternative Protein
    • Automation
    • Cannabis
    • Cleaning | Sanitation
    • Fabulous Food Plants
    • Food Safety
    • Maintenance Strategies
    • OEE
    • Packaging
    • Sustainability
    • More
  • EXCLUSIVES
    • Plant Construction Survey
    • Plant of the Year
    • Sustainable Plant of the Year
    • State of Food Manufacturing
    • Top 100 Food & Beverage Companies
  • MEDIA
    • Podcasts
    • Videos
    • Webinars
    • White Papers
  • FOOD MASTER
  • EVENTS
    • Food Automation & Manufacturing Symposium and Expo
    • Industry Events
  • RESOURCES
    • eNewsletter
    • Custom Content & Marketing Services
    • FE Store
    • Government Links
    • Industry Associations
    • Market Research
    • Classified Ads
  • EMAGAZINE
    • eMagazine
    • Archive Issue
    • Advertise
  • SIGN UP!