INTELLIGENT BRANDS // Software for Business

The report – a first-of-its-kind analysis of the industry ’ s production capability – revealed the average non-alcoholic filling line spends 36 minutes per hour ( 60 % of time ) not filling beverages , including 20 minutes per hour lost to unplanned downtime . This amounts to 4,270 units of lost opportunity every hour the filling line is running , equivalent to tens of millions of dollars each year .

This is based on an evaluation of millions and millions of litres of production activity , primarily in Australia , New Zealand and parts of Asia , with manufacturers in the small-to-medium business ( SMB ) market with an annual turnover of less than AU $ 100 million . It included producers of non-alcoholic beers , kombucha , ginger beer , coconut water and juice drinks .

The report highlights that three times as many issues occur at the end of the manufacturing process than anywhere else on the line . Specifically , these issues are occurring between packing and palletising , where the biggest culprits are the carton packer and the palletising station . However , producers scored much higher in waste efficiency , with only 0.6 % – or 31 units per hour – not ending up in a case or carton . Further , the report showed nonalcoholic beverage producers spend too long setting up a new production job , averaging out at 58 minutes . This compares to 49 minutes for craft beer producers based on a similar study conducted by OFS .

OFS CEO James Magee

Changing the focus on efficiency

OFS CEO James Magee says the data reflects a huge opportunity waiting for non-alcoholic beverages producers . Sales of nonalcoholic drinks skyrocketed by more than 83 % in Australia in the past year , and 71 % of Australian consumers intend to increase or maintain no-or-low-alcohol consumption next year , with most interested to discover new brands .

Magee said : “ One of the key issues is a lack of data and visibility over what ’ s happening on the line , where issues come from and how to prevent them . Currently , this is largely done by tedious manual processes or even gut instinct . There ’ s a myth we want to demystify that data systems and the level of efficiency are only suitable for major manufacturers – that couldn ’ t be further from the truth .”

The report recommends better use of data analytics and digitization on the packing line , which can both highlight stoppages and the opportunity cost they cause , allowing producers to prioritize what will make them most efficient . It shows the average overall equipment effectiveness ( OEE ) – an independent measurement tool for how well a manufacturing operation is used compared to its full potential – in the industry is at 42.97 %.

“ The industry has a great handle on waste – losses here are minimal – and that ’ s because it ’ s easy to see the damage if it goes unchecked ; you can physically see wasted or rejected cans or bottles accumulating . It is much more difficult to ‘ see ’ lost time ,” added Magee . p

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