The overall production costs of an item consists of its Direct and Indirect Costs. Direct Costs include the raw materials that went directly into the product and the labor that added value to that product at each step of the production process. Indirect Costs include the overhead associated with producing the item such as management labor costs, facilities costs, energy costs, machinery costs and IT costs.
Every manufacturing company finds itself needing to address products costs in order to compete and to remain profitable. In the food business, margins are notoriously tight meaning that food manufacturers need to be constantly looking at and reducing their production costs.
The right Smart Factory Analytics solution can help you determine what your production cost drivers are and where opportunities for improvement lay.
This is true of all production costs.
Direct Production Costs
With Worximity’s new API integration with the most commonly used checkweighers in food manufacturing it’s possible to quickly and easily get dashboard analytics that will help you to reduce raw material costs. For instance, in baking, making sure that the dough is sliced to the right amount and you are not oversizing your baked products and creating wastage helps you to manage raw material costs. Similarly across all food production the checkweigher is the final evaluation of whether you’re over or under-filling packages whether this is in dairy processing or meat processing. Over-filled packages mean that you are not only wasting (and not getting paid for) the raw material that went into that package, but that you are also wasting the direct labor costs that went into the product as well.
Indirect Production Costs
One indirect cost of production is IT hardware. The new Worximity checkweigher API integration eliminates the need for additional hardware (the Tileboard) meaning that you save this indirect production cost. Of more value is that manually keeping track of your production cost KPIs can consume considerable overhead. By building an automated smart food factory dashboard you can streamline data gathering and eliminate the overhead labor associated with gathering data from dispersed manufacturing points as well as the labor associated with managing and updating spreadsheets. The new Worximity API checkweigher integration provides access to even more data so that sophisticated production cost evaluations are possible.
The new Worximity API integrations with common checkweigher machines enables you to quickly bring smart food factory analytics online and enables you to get visibility into and reduce all of your production costs. Food processing facilities can now have an even faster access to real-time factory analytics from checkweighers made by Mettler Toledo, Ishida, Yamato.
To learn more about Worximity and maximizing product yield, visit here.
To see how one food processor increased yield using smart factory analytics, get the case study below!