CASE STUDY SS-FB-PI-04 | Performance Improvement

Material Loss Control – Bakery

Driving Bakery Efficiency; Dashboard Insights to Reduce Material Waste

Food & Beverage | Performance Improvement

$1.5M

Identified Annual Waste Cost Savings

10%

Total Waste Root Cause Identified

100%

Production Reporting Accuracy Correction

Challenge

Excessive Waste: The bakery was generating over 10% waste, more than double the industry average, indicating significant inefficiencies.
Data Fragmentation: Data on waste was fragmented across different SKU types and departments, making it difficult to identify the root cause.
Isolated Analysis: Separate analyses were conducted within different departments and SKUs, lacking a holistic approach to understanding the overall system.
Unreliable Measurements: Statistical process control and scrap tracking did not fully account for the reported waste, with figures not matching the 10% identified.
Critical Cost Implications: Each percentage point reduction in waste amounted to roughly $1M, emphasizing the need for precise, coordinated action.

Unified Dashboard: A comprehensive dashboard was developed, integrating whole pie finished goods and sliced pie cases with batching department data.
Graphical Analysis: A graph was created to track apple pie production dates, invalidating the hypothesis that the apple pie line was the primary source of waste.
Data Segmentation: A slicer tool segmented data by dates, SKU categories, and the batching department, enabling detailed analysis.
Side-by-Side Visualization: The dashboard displayed separate yet aligned views of batching departments, SKU categories, and waste percentages to reveal relationships and trends.
Holistic Understanding: The integrated dashboard provided a complete, segmented view of waste, enabling clear insights into how the cumulative 10% waste occurred.

Production Overstatement Corrected: Identified that the batching room was overstating production by using gross weights instead of net weights, leading to direct waste in filling.
Key Waste Source Identified: Found that most losses occurred in batching due to reporting errors and smaller packaging units from purchasing.
Cost-Effective Recommendations: Suggested more bulk packaging for batching, accurate reporting, and supply line flushing to recover waste at the end of production.
Significant Cost Savings: Recommendations led to potential savings of $1.5 million through improved practices in batching and waste recovery.
Holistic Waste Reduction: Addressing challenges identified across departments resulted in a comprehensive, effective approach to reducing waste.