Efficiency is Necessary, but Value is the Point

In the ever-evolving realm of food and beverage manufacturing, efficiency initiatives are often the natural starting place. Organizations typically invest in line visibility, downtime tracking, and Overall Equipment Effectiveness (OEE). While these efforts are important, they can lead teams to gain visibility without a corresponding increase in business impact. Dashboards multiply, but tangible improvements in margin, risk reduction, speed, or resilience may be harder to identify.

This is why crafting a technology strategy around the business values is crucial.

Driving Business Value

Margin Expansion

Margin-related value often stems from yield and throughput improvements. Reducing overfill, scrap, rework, minimizing unplanned downtime, and managing energy use are all crucial for enhancing profitability. Technology can aid by revealing losses and supporting consistent response mechanisms.

Practical Baseline Measures:

• First-pass quality rate
• Scrap and rework cost
• Unplanned downtime hours
• Energy cost per unit produced

Risk Reduction

In the food manufacturing sector, risk is concrete. It encompasses food safety incidents, regulatory compliance exposure, business continuity challenges, and cybersecurity events that could disrupt operations.

Key Operational Questions to Track Risk Reduction:

• How quickly can traceability be demonstrated?
• How consistently are audit findings closed?
• Are backups tested and recoverable?

Speed-to-Market

This aspect refers primarily to execution rather than invention. Speed-to-market can be measured through smoother product transfers, swift changeovers, and quicker ramp-up to stable production after launches.

Useful Measures Include:

• Changeover duration and variability
• Time to stable production after launch
• The number of quality holds during early runs

Resilience

Resilience is tested when conditions change, such as ingredient substitutions, packaging shortages, labor constraints, and transportation disruptions. Ensuring faster and more consistent decision-making can significantly improve resilience.

Common Resilience Measures:

• Schedule adherence during disruptions
• Time to recover from major stoppages
• Cross-training coverage for critical roles

Value Map Framework

Utilizing a value map provides a structured approach to align business and technology discussions, following a clear sequence:

1. Business outcomes first
2. Required capabilities next
3. Then data and process needs
4. Finally, enabling technology

This method emphasizes results, making it easier to identify when process clarity or data discipline becomes a limiting factor.

Example Scenario:

Consider the goal of reducing allergen changeover losses while enhancing food safety confidence. The desired outcome involves capabilities such as standardized sanitation steps, reliable verification, and faster release decisions, all driven by clear data and processes before selecting technology solutions.

Portfolio Approach to Budget Allocation

A portfolio approach to technology investment helps to balance immediate operational needs with long-term scalability. Key components include:

• Core Modernization: Focuses on stability and risk reduction, including reliable records and cybersecurity controls.
• Scalable Platforms: Enable reuse across sites through shared data standards and repeatable integration patterns.
• Targeted Innovation Bets: Focused investments with measurable outcomes, such as predictive maintenance or automated inspections.

What Execution Teams Need from Strategy

A successful strategy must reduce friction for operational teams. This includes:

• Clear standards for data definitions and performance metrics.
• Defined integration pathways that connect to real workflows.
• Established scale criteria to clarify impact and readiness requirements.

Creating a Practical Proof-of-Value Plan

A proof-of-value plan focuses on measurable changes. It starts with a reliable baseline and outlines realistic timelines for adoption and scaling decisions. Governance can be light, managed by a small cross-functional team encompassing operations, quality, engineering, IT, and security considerations.

FAQ for Food Manufacturing Leaders

How do we move beyond OEE without losing operational focus?

OEE can still be a useful metric, supplemented by yield and quality-related measures.

What is a sensible first value map to build?

Many start with visible pain points such as changeovers or traceability speed where baseline data exists.

Should technology strategy be corporate-led or plant-led?

Successful strategies often combine enterprise standards with plant-led execution that reflects operational realities.

How can we justify investment when the value is risk reduction?

Risk reduction can be measured through faster traceability, fewer audit findings, and improved recovery testing.

What if our data quality is not ready for advanced analytics or AI?

Focus on critical data for specific outcomes rather than perfecting all data sources at once.

How do we keep pilots from stalling?

Define early scale criteria and utilize a clear proof-of-value plan to ensure successful pilots become repeatable programs.