An extra biscuit for you isn’t good news for everybody image

Blog

An extra biscuit for you isn’t good news for everybody

Written by Nathanial Marshall, Practitioner at LI Europe


Last week, when doing my weekly shop, I found my favourite packet of chocolate biscuits on special offer. Naturally, I bought two packets to enjoy over the coming days. Once I arrived home and unpacked all of my shopping, all I wanted to do was sit down in front of the telly with a cup of coffee and a packet of my favourite biscuits.  When I opened the packet, I found not 10 pieces as expected, but 11 instead. I was incredibly excited that I was getting an extra snack for free. However, being a manufacturing professional, my mind quickly turned to the extra cost this would be creating for the manufacturers.

I might just be the one lucky consumer to get his extra biscuit, but it is likely there were hundreds if not thousands of others with an extra portion.  The manufacturers are essentially giving away an extra 10% of product. For every 10 packets produced, there would be an equivalent full packet given away to consumers for free.  This would add a significant cost to the business. Imagine if someone took away 10% of your expected monthly income, how would you feel?

To manufacturers, this is a type of waste called “Giveaway”. Often manufacturers focus on the waste that is “thrown in the bin”, or “Throwaway”. It is visible on the factory floor, in bins around the areas and its impact is seen by all, as well as being felt on the bottom line. Giveaway can be a hidden waste. Average weight checks will no doubt be in place to ensure the product meets the legal requirements for minimum weight pack declaration. Unfortunately, this is often done without a process to control or even reduce the level of giveaway.

Even for those who do measure it, there is usually an opportunity to improve. One of the other reasons it is a “hidden” waste, is because an “expected” giveaway may be built into their standards. For example, 5% is built into the budget. If the actual giveaway then comes in at 5%, it would show no loss. This can hide the magnitude of the opportunity.  Improvements to giveaway, unlike efficiency improvements, will always deliver a benefit to the bottom line instantly.

Different methodologies can be employed to reduce giveaway, depending on the product, process and technology.  Over the years I have spent time in various factories improving their level of giveaway. From 20% to below 10% on Sushi pieces, from 7% to 3% on biscuits and 2% to 0.5% on sausages, all of which has saved businesses hundreds of thousands of pounds.

If you fancy sharing your experiences and challenges of improving giveaway, as well as any other improvement initiative, why not come along to our Ambassadors Academy.

The Ambassadors Academy is a monthly event for ambitious manufacturing professionals concerned with driving productivity, in all its form.  If this article interests you and you’d like to find out more about the Academy follow this link to the Ambassadors webpage

Testimonials

What we’re doing is great. I’ve been wanting help like this for what seems ages, the structure for problem solving makes it easy for everyone to get involved.

Cell Technical Expert, Multi-Site Household Goods Company

This is the best I’ve seen this line run…I never thought we’d be able to get it up to this speed.

Operator – Bakery