Strategic Management in the Food Processing Industry

In more ways than one, the needs and constraints of the food processing industry can be more involved than building a car. Surprised? On the surface, manufacturing facilities in this industry are subject to demands of any plant: customer demand, production capacity, raw materials purchasing, equipment maintenance, etc. However, further investigation reveals idiosyncratic constraints within the industry best suited for planning and scheduling software.

Let’s take a closer look into some of these limiting factors and how planning and scheduling software operates within the food processing industry.

Defining Physical Constraints

Production equipment in food processing plants is expensive and, therefore, limited in nature. Therefore, a facility's maximum output is often limited by a few typical physical constraints. These include:

• The number of machines available
• The production rates on each machine
• Lost time due to changeovers, downtime, and unexpected challenges to yield

Implementing a planning and scheduling software mitigates these issues by preparing schedules that account for industry-specific parameters. Smarter scheduling capabilities equate to increased output and higher revenues.

Strategic management also takes into account the logistics of these facilities. Cross-contamination and spoilage are often an issue with food production, presenting a significant challenge for operations managers. With a software system in place, its capability-based scheduling will only task a machine if they meet all capacities within the required timeframe.

Scheduling Cleanouts

Equipment cleanouts maintain hygienic conditions and prevent cross-contamination between products. This necessary process not only limits spoilage but reduces allergen contact. For example, a machine that had processed peanuts needs to be scheduled for a cleanout before it is set up to handle a mixture without peanuts. Though, in cases like this, cleanouts may occur during the day, the majority of them are often scheduled during non-productive hours. Planning and scheduling software can plan cleanouts during specific time frames, or even remind you when equipment is overdue for a once-over. It can also reduce excessive changeovers and overall cleanouts by performing the following functions:

• Sidestep Bad Sequences—configure the system to identify sequences that create more work.
• Machine/Product Assignment—run certain products on their specified machines.
• Cross-machine Contamination—operate machines processing materials with non-compatible airborne particles in different areas within the plant

Reducing Waste: Managing Inventory Shelf Life

Food spoilage is another serious constraint for food processing facilities. Storing product for extended periods of time increases the chances of spoilage. Therefore, companies reduce waste when they produce goods as close to their need date as possible. Strategic management places limitations on production orders to prevent surplus, decreasing overall spoilage.

Benefits don't end here. The adaptability of advanced planning and scheduling software makes it highly functional across different industries. It alleviates the hurdles of strategic management for operations managers across the nation.