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Enhancing Production Efficiency on ACH Foods' Mrs. Dash Line Through Standardization

ACH Food Companies, Inc., a leader in spices and seasonings, faces a challenge with high scrap rates on Line 42 responsible for producing Mrs. Dash seasoning packets. This issue incurs annual costs exceeding $35,000 due to operator inconsistencies and machine errors. A study was conducted to analyze the causes and identify potential solutions, emphasizing the need for standardized work instructions and possible equipment upgrades. Recommendations include implementing standardized practices and upgrading the top sealer to improve efficiency and reduce waste.

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Enhancing Production Efficiency on ACH Foods' Mrs. Dash Line Through Standardization

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Presentation Transcript

  1. ACH Foods: Tone’s Courtney Boss, Astrid Lederhaas, Kayla Soliday, Anna Witt

  2. Introduction ACH Food Companies, Inc. is the leading manufacturer and marketer of spices and seasonings in North America Line 42 produces Mrs. Dash 1 oz. seasoning packets to be distributed

  3. Introduction, continued • Production Quota: • 8 pallets/day • 192 cases/pallet = 1,536 cases/day • 500 packets/case = 768,000 packets/day • Line operated between 4 and 5 days per week, the 5th day being added as overtime to meet production quota • 5 operators were observed on the line during our study

  4. Problem Statement • High scrap rate on Line 42 – over $35,000 annual cost • I-bar registration • Inconsistencies in packet alignment • Inconsistencies among operators • Lack of standardization • Production Supervisor had mentioned that the machine was run differently by each operator

  5. Description of Work • Focus on standardized work: • Unable to make modifications to machine • Machine speed already reduced to 75% of maximum speed (900 packets/minute)

  6. Data Collection • Data collected over a period of 3 weeks • Drums placed at “front” and “back” of machine • “Front” scrap was intended to represent operator error • “Back” scrap was intended to represent machine error • Later deemed inaccurate • Five operators

  7. Data Analysis

  8. Data Analysis

  9. Recommendations • Standardized work instructions • Troubleshooting guide • Reduce deviations among operators • Potentially reduce scrap • Cheapest recommendation • Top Sealer upgrade for machine • Non-operator-related scrap • Benefit of upgrade

  10. ROI Analysis • Annual cost of scrap • $39,954 • Cost of Top Sealer upgrade • $68,670 • Cost of Teflon Strips (2013) • $3,564

  11. ROI Analysis

  12. ROI Analysis

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