Scaling Up — TCO, OEE And Everything You Need To Know

Tools for small company success in a large company world.

Mnet 154252 Pmmi Logo Listing

Whether making organic juices or craft brews, niche beverage manufacturers do not have the resources or capital to make the same purchase decisions as their larger competitors. As these smaller beverage companies grow, it places them in the unfortunate situation of deciding what upgrades are available and what are things to target for future growth. The result in many cases is a need for new production and packaging equipment. But in cases where that is not an option, it has become more critical than ever that manufacturers keep up with a trained, engaged workforce utilizing current machinery to its fullest potential.

This situation is made even more complicated by the ensuing requirements coming from the Food Safety Modernization Act (FSMA). FSMA brings with it, some of the most intensive changes to U.S. government oversight in recent memory.

One way to determine where your machinery needs lie is to take advantage of some of the new informational tools original equipment manufacturers (OEM) have developed to create a clearer picture illustrating how a piece of equipment or new technology can improve an operation.

In its role as the Association for Packaging and Processing Technologies, PMMI leverages its convening strength with the OpX Leadership Network. A dynamic community of manufacturing, engineering and operations professionals dedicated to operational excellence, The OpX Leadership Network facilitates the open dialogue between Consumer Packaged Goods (CPG) manufacturers and OEMs. The best minds come together to identify and solve common operational challenges and apply best practices and innovative solutions to the real-world context of manufacturing.

These include a comprehensive guide to Total Cost of Ownership (TCO) as well as an Overall Equipment Effectiveness (OEE) Benefits Calculator.

Few more essential factors enter into any business decision than cost, but when it comes to equipment, the purchase price is just the tip of the iceberg. This may be one of the reasons The Total Cost of Ownership (TCO) Playbook and Checklist continues to be the OpX Leadership Network’s most downloaded report. These guidelines break down the ongoing costs that factor into the real cost of running machinery — from design and application through maintenance and environmental concern — to allow CPGs and OEMs to move the discussion beyond the price tag to focus on the TCO. If equipment is in a beverage manufacturer’s future, then the protocols in the One Voice Factory Acceptance Tests (FAT); Protocols for Capital Equipment in the CPG Industry help resolve FAT criteria, clarifying expectations or miscommunications that often leave both parties confused.

When capital expenditures for new equipment are not something a company can do right away, the OEE Benefits Calculator and OEE Starter Tool help identify opportunities for increased efficiency on the plant floor. The OEE Starter Tool helps CPGs have a better understanding of the various factors impacting OEE, and outlines opportunities for savings in production processes while maximizing production. Companies can also download the OEE Benefits Calculator to apply these concepts to their own operations. For those looking for additional expertise to address TCO, OEE and FAT, opxleadershipnetwork.org is home to On-Demand Webinars with industry experts addressing each of these areas.

The group also provides Innovation Stage education sessions at PMMI’s PACK EXPO portfolio of trade shows. PACK EXPO East (April 16-18, 2018; Pennsylvania Convention Center, Philadelphia) serves as the premier regional show in the manufacturing-rich Northeast corridor of the United States.

Now in its third iteration, it brings together 400-plus suppliers of packaging innovations for baking and snack, food, beverage, pharmaceutical/medical device, cosmetic/personal care, chemical/household and other packaged goods that serve companies of all sizes. The three-day event, spanning more than 100,000 net square feet, is a valuable opportunity to see the latest packaging technologies and provides the opportunity to exchange ideas with 6,000 peers.

About PMMI

PMMI, The Association for Packaging and Processing Technologies, represents more than 800 North American manufacturers and suppliers of equipment, components and materials as well as providers of related equipment and services to the packaging and processing industry. We work to advance a variety of industries by connecting consumer goods companies with manufacturing solutions through the world-class PACK EXPO portfolio of trade shows, leading trade media and a wide range of resources to empower our members. The PACK EXPO trade shows unite the world of packaging and processing to advance the industries they serve: PACK EXPO International, PACK EXPO Las Vegas, Healthcare Packaging EXPO, PACK EXPO East, EXPOPACK México, EXPO PACK Guadalajara and ProFood Tech. PMMI Media Group connects manufacturers to the latest solutions, trends and innovations in packaging and processing year-round through brands including Packaging World, Automation World, Healthcare Packaging, Contract Packaging, ProFood World and Packaging + Processing OEM. PMMI Business Drivers assist members in pursuing operational excellence through workforce development initiatives, deliver actionable business intelligence on economic, market and industry trends to support members' growth strategies, and actively connect the supply chain throughout the year.

Learn more at PMMI.org and Packexpo.com and PMMIMediaGroup.com.

More in Home