1. Links to a Better Bottom Line: Boosting Yield and ROI in Sausage Production

2. HOST Bill Kinross Group Publisher, Meatingplace MODERATOR Lisa Keefe Editor, Meatingplace

3. Process Design Overview: Where Opportunities Exist in the Processing Plant Dr. Tim Bowser Food Process Engineer Food & Agricultural Products Center Oklahoma State University

4. Assumptions Project is well planned Research has been completed Process Design is solid Preliminary Process Flow Diagrams (PFD) have been prepared

5. Four Overlooked Areas 1.Cleanup 2.Environmental controls (e.g. ventilation, moisture) 3.Materials handling 4.Communications

6. Cleanup Cleanability is the single criterion that separates food from industrial processes Cleanability must be designed from the start www.ssiworld.com Weiler and Company, Inc.

7. Cleanup Robust and validated cleanup systems are required for peak process performance and product safety Have your cleanup methods changed since the 1980s? Munters Corp. 2004. M162807

8. Cleanup Reduced cleanup time may be the least expensive and quickest way to increase production Rapid cleanup can improve scheduling flexibility

9. Cleanup Ask yourself – Do you fully utilize CIP? – Do you have schematics for cleaning systems? – Have you thought about cleaning system redundancy and flexibility? – What effects will cleaning have on wastewater treatment and utilities?

10. Environmental Controls Everyone thinks about temperature… Environmental issues often overlooked: – Humidity – Pressure

11. Environmental Controls High humidity – Ice in freezers – Indoor rain Munters Corp. 1994. 2.5M www.labsafety.com

12. Environmental Controls Pressure: – Positive pressure in processing areas – Higher pressure in packaging, decreasing to raw – Achieve balance for ovens Makeup air for burners and ventilation Exhaust

13. Materials Handling How are these being handled in your design? – Ingredients – Rework – Waste Washington Post

14. Materials Handling Ingredients – Thaw – Staging – Bulk materials – Minor additions donscoldstorage.com

15. Materials Handling Rework – Minimize amounts – Mechanize Movements Handling Identification and tracking

16. Materials Handling Waste – Minimize – Reuse – Adequate handling systems www.greenhats.com

17. Communications Process steps may become isolated, stifling communication ISOLATED CONNECTED

18. Communications Remove barriers – Noise – Obstructions – Time – Ability

19. A Few Words From Our Sponsor Thomas R. Kittle President Handtmann, Inc. Web: www.handtmann.comwww.handtmann.com

20. Identifying the Key Area in your Plant to Improve your Sausage Production ROI Michael Willett Iowa State Center for Industrial Research & Service University Extension Iowa State University

21. Poll Question: Which machine do you want to invest in? $10 $20 $1.5 million Investment $2 million Investment 1000 per day 10 per day

22. Throughput The rate at which the system generates money through sales. Building to inventory does not generate throughput. Typically has 2-10 times more impact on profit than cost reduction.

23. Constraints control Throughput Because a constraint is a factor that limits the system from getting more of whatever it strives for, then a business manager(s) who wants more profits must manage the constraints. There really is no choice in the matter. Either you manage constraints or they manage you. The constraints will determine the output of the system whether they are acknowledged and managed or not. Eric Noreen, The Theory of Constraints and its Implications for Management Accounting

24. Where is my constraint? Your process is a series of dependent events. Which operation is restricting your rate of throughput? GrindMixStuffHangSmoke Cool / Freeze Pack Customer Throughput FOCUS

25. Creativity before Capital Exploit – maximize the existing capacity of the constraint. Subordinate – release work into the system at the pace of the constraint. (Drum/Buffer/Rope) GrindMixStuffHangSmoke Buffer Inventory

26. Results Any increase in capacity of the constraint from exploiting reduces the cost per unit. Drum/Buffer/Rope reduces inventory costs in the system and aligns labor $ with output. ROI = Profit/(Inventory + Investments) Theory of Constraints (TOC) provides the focus that allows you to maximize profits while minimizing I & I for a better ROI.

27. Handtmann, Inc. specializes in filling, portioning and linking equipment for meat processors, providing machines for all sizes of sausage filling lines and meat processing businesses Sales Contact: Bob Koris, Sales Manager Phone: (847) 808-1100 Web: www.handtmann.comwww.handtmann.com A Few Words from Our Sponsor

28. Case Studies of Successful Sausage Manufacturers Dr. Jay Wenther Executive Director American Association of Meat Processors

29. Case #1 – Sausage Linking method progression Hand linking Stuffer linking Automated machine linking Entire linking systems

30. Hand linking 250-300 lbs. / hour Automated linking/stuffer linking 1,500 lbs. / hour of 8,000 links / hour Entire linking systems 4,500 lbs. / hour of 24,000 links / hour Case #1 – Sausage Courtesy of Famco®

31. Lessons learned from production Dont operate stuffer at full production (70-80%) All employees have to operate at their capacity (sausage production, packaging, shipping, etc.) Ramp up production over time Started at 10,000 links/hour Increased production by 500 links/hour Now operating at 24,000 links/hour Case #1 – Sausage

32. Take home message Recognize what areas are slowing you down now and focus on methods to improve each area Operating the stuffer at the speed the employees can achieve will keep everyone working 100% of the time Production is a team effort Bring your entire team gradually up to a higher level of production will improve their abilities and maintain quality Case #1 – Sausage

33. Case #2 – Clipping Machines Clipping method progression Hand tying Hand clipper Pneumatic clipper Automated clipper

34. Case #2 – Clipping Machines Overview Understand the investment costs Cost of machine Cost of clips Cost of casings Cost of what you are currently using Cost of your time Cost of clips used for automated clipping are twice the cost of other clips Sheared casings are twice the cost of other casings Courtesy of Poly-clip System Corp®

35. Case #2 – Clipping Machines Summer sausage Machine will go as fast as you want it to, but other production personnel may not be able to keep up Previous system (individual casings and clipper) 2 casing and 400 lbs. load = 2 hours 200 lbs. per hour Current system (sheared casings and automated clipper) 2 casing and 400 lbs. load = 45-60 minutes 400-450 lbs. per hour

36. Case #2 – Clipping Machines Ring bologna Pound for pound of product produced, the collagen casing cost was the same as the natural casings Previous system (natural casings and hand tying) 300 lbs. per smokehouse truck = 1 ½ hours to stuff/tie/hang 200 lbs. per hour Current system (natural casings and automated clipper) 300 lbs. per smokehouse truck = 20 minutes to stuff/clip/hang 900 lbs. per hour

37. Case #2 – Clipping Machines Braunschweiger Hidden benefit is the fact that the machine allows for much cleaner production with the braunschweiger batter Previous system (individual casings and clipper) 100 lbs. product = 30 minutes to stuff/tie/hang 200 lbs. per hour Current system (sheared casings and automated clipper) 100 lbs. product = 6-7 minutes to stuff/clip/hang 825 lbs. per hour

38. Case #2 – Clipping Machines Take home message Time saver Sooner you get done with one task the quicker you can get to the other tasks Physical labor saver Stagger production to maximize the usage of capital equipment investment All the benefits gained justified the investment of money to make more money

39. Case #3 – Automated Sausage Hanger Stuffing method progression Straight stuffing & hand hanging Link stuffing & hand hanging Automated stuffing & automated hanging Cost benefit may not solely be due to increased production, but also attributed to product consistency

40. Case #3 – Automated Sausage Hanger Straight stuffing & hand hanging Production 2,400 lbs. / day (300 lbs. / hour) Problems Casing and stuffing was highly variable High volume of rework produced Final product Label = 1.5 ounces Actual package = 1.7 ounces to account for product variability

41. Case #3 – Automated Sausage Hanger Automated stuffing & automated hanging Production 6,400 lbs. / day (800 lbs. / hour) Final product Label = 1.5 ounces Actual package = 1.5 – 1.6 ounces Increased production by 6 cases / 800 lbs. of sausage batter or 6 cases / hour

42. Take home message Removed stuffing operator variability Increased production by 6 cases per hour = $2,500/day Decreased risk of customer complaints and USDA label misbranding due to potential under-weight packages Operates at 70-75% stuffer speed Speed is essentially based on how fast the operator can load the sheared casing on the stuffing horn Easier on the equipment Case #3 – Automated Sausage Hanger

43. QUESTIONS & ANSWERS

44. FOR MORE INFORMATION: Dr. Tim Bowser: bowser@okstate.edu Michael Willett: mwillett@iastate.edu Dr. Jay Wenther: jay@aamp.com Bill Kinross: bkinross@meatingplace.com Lisa Keefe: lkeefe@meatingplace.com Webinar recording and PowerPoint presentation available at: www.meatingplace.com/webinarsbowser@okstate.edumwillett@iastate.edujay@aamp.combkinross@meatingplace.comlkeefe@meatingplace.com www.meatingplace.com/webinars