Sometimes , all it takes is a fresh perspective to uncover growth opportunities within your production process .
Our consultative approach consistently emphasises a deeper focus on performance improvement with a keen eye on the Cost of Sales , as this is often the largest area of expenditure and where substantial growth opportunities can be unlocked .
So , what can we do to reduce the cost of sales ?
Don ’ t Underestimate the Impact of Wastage
Wastage is a major issue , and it is everywhere throughout food manufacturing operations , from goods-in to despatch . Some obvious examples include wastage due to incorrect labels on packaging and overfilling .
During a visit to a coffee manufacturer , we were shocked by the quantity of wasted aluminised packs . The production line commenced at 8 am , and by 9 am , two substantial dump bags were already overflowing with this wasted , expensive packaging . To investigate this wastage , we embarked on a Gemba walk . We discovered that one of the primary reasons for these wasted coffee bags was the absence of date codes on the labels . The heater was not hot enough to imprint the date code , necessitating the disposal of many of these packaging bags . Others were due to inadequate pack seals and checkweigher rejects .
Overfilling presented another critical and common wastage issue . During a pack weight audit of a milk factory supplying to schools , we noticed that every carton was filled beyond the required level by circa 10 %. You might think this is an insignificant amount of milk , not seriously affecting costs . However , when we tallied the costs of this overfilling , it amounted to a daily loss of £ 450 . Bearing in mind this was just one product on one production line , scaled up across the factory , the losses through overfill alone amounted to more than £ 0.5million per year .
These instances represent just a couple of straightforward examples of wastage . By addressing and minimising these forms of wastage and enhancing your operational efficiency , you can significantly improve your bottom line . This is where Harford can step in and provide invaluable assistance .
A Fresh Perspective for your Business
The Harford system is built to scale across entire factories , from goods-in to dispatch . Whether the challenges stem from mislabelling , quality issues , overfilling or lost efficiency , waste information can be collected , analysed and distributed in realtime to networked PCs , laptops , tablets , and mobile devices . This empowers operators to make immediate adjustments , while managers gain the insights needed to make well-informed decisions on the spot .
Compliance , quality , efficiency and yield can be comprehensively improved upon through the excellence of the Harford MIS / MES solution , coupled with the diligence and engagement of your production teams . This has frequently proven to reduce the cost of sales , thereby significantly improving pre-tax profits .
Sometimes , all it takes is a fresh perspective to uncover growth opportunities within your production process . If you ’ re ready to explore these possibilities , please reach out to us .
Contact us with your inquiries at info @ harfordcontrol . com or give us a call on + 44 ( 0 ) 1225 764461 .
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