Adapting to Customer Needs in a Dynamic Market
Over the past 30 years, Koch Foods has evolved from a small operation into one of the largest vertically integrated poultry processors in the United States. Specializing in high-quality poultry products, the company serves a diverse clientele, including food service providers, retailers, and quick-service restaurants. To meet the ever-changing demands of customers and market trends, Koch Foods recognized the need to refine its production planning and scheduling processes.
Challenges: Navigating Operational Complexities
At its Fairfield, Ohio plant, Koch Foods faced several operational hurdles:
- Lack of Advanced Planning Mechanisms: The absence of a robust planning system made it difficult to anticipate and manage increased demand, leading to frequent production disruptions.
- Reactive Adjustments: Without clear insights into production impacts, the team often resorted to ad-hoc workorder changes, resulting in inefficiencies and a reactive “fire drill” approach.
- Allergen Scheduling and Ingredient Variations: Managing production schedules around allergens and varying ingredients led to costly setups, cleanouts, and changeovers.
Solution: Implementing Siemens Opcenter APS
To address these challenges, Koch Foods collaborated with ATS Lean Scheduling International (LSI), a Siemens Digital Industries Software partner, to implement Siemens Opcenter Advanced Planning and Scheduling (APS). This initiative involved:
- On-Site Assessment: LSI conducted a thorough analysis of Koch Foods’ existing processes to identify critical data and areas for improvement.
- Proof of Concept: Utilizing Koch Foods’ data, LSI demonstrated how Opcenter APS could effectively model the company’s capacity and constraints.
- Customized Reporting: Development of tailored reports, including a material requirements planning (MRP) report, provided visibility into procurement needs aligned with short-term production goals.
Results: Achieving Operational Excellence
The deployment of Opcenter APS yielded significant benefits:
- Enhanced Production Throughput: By optimizing existing resources, Koch Foods increased production efficiency without the need for additional investments.
- Optimized Scheduling: The software facilitated efficient scheduling around constraints such as allergens and ingredient variations, reducing the frequency of changeovers and associated costs.
- Controlled Work Schedules: Transitioning from a reactive 7-day workweek to a more predictable 5 or 6-day schedule minimized overtime and operational disruptions.
- Improved Predictability: With a structured planning approach, the company experienced fewer packaging issues and a more streamlined production process.
- Reduction in Rework and Waste: More efficient scheduling resulted in better utilization of raw materials and fewer last-minute corrections.
Stewart Ward, Vice President of Information Systems at Koch Foods, reflected on the transformation:
“When Brian Reisen, the general manager at the Fairfield plant, looked at the Opcenter APS planning interface that had been put up on the screen, he said, ‘that’s exactly what we’re looking for… that’s what we want to be able to get to.'”
By integrating Siemens Opcenter APS into its operations, Koch Foods has positioned itself to better navigate market fluctuations and customer demands, ensuring sustained growth and efficiency.
Enhancing Competitiveness with Advanced Scheduling
At Kudos Solutions, we specialize in helping manufacturers like Koch Foods harness the full potential of Siemens Opcenter APS. If you’re seeking to optimize your production planning and achieve measurable improvements, contact us today.
