Bakery Reduces ingredient Waste and Bad Batch Costs by $39,158

The Challenge

To ensure that the recipe is correctly followed, to improve ingredient usage and to provide accurate and easy to use Batch Reports and Ingredient Lot ID traceability


A large national baking company realized that improving the performance of their minor ingredient scaling could lead to a significant impact on their profitability. Additionally they were averaging one bad batch a week due to errors in the minor ingredient hand adds. They looked to Doran Scales to provide the solution to reduce costs from wasted ingredients and bad batches.

The Solution

The Doran FC6300 Formula Control Scale


 

A Doran FC6300 is installed at the ingredient scaling station. Ingredient batching is automated, stepping the user through the formula and ensuring the correct ingredients are accurately scaled every time.


Formula Loader software is installed on a PC. This recipe software is used to create and maintain minor ingredient batches. Recipes, formulas and production schedules are then uploaded to the FC6300 through USB flash drive or through an Ethernet connection.


Increase accuracy is achieved through user programmable ingredient target weights and tolerances giving management effective control of the batching operation.

Multi-tasking Operators who are distracted by other production responsibilities can now return to the partially scaled formula assured that the scale will pick up right where they left off, prompting them through the remainder of the formula without error.


Ingredient Lot Numbers are automatically recorded for traceability during formula scaling while ensuring each ingredient meets the desired weight tolerance.


All batches, Ingredients and batch lot number records can be easily and quickly searched using Formula Loader or on Access database query.

The Return on Investment

Four Months!


By significantly increasing accuracy of ingredient scaling and eliminating bad batches provided considerable savings for this company as shown below:

Cost of Ingredients Savings
Weekly Ingredient usage: 15,000 lb
Average ingredient cost per pound: $0.35
Variance % without Formula Control: 1.96%
Variance % with Formula Control: 0.10%
Variance pound without Formula Control: 294
Variance pound with Formula Control: 15
Ingredient savings in pounds per year: 14,508 lb
Total ingredient savings per year: $5,077
Cost of Ingredients Savings
Average batch cost, including ingredient and overhead: $500
Bad batch normal, overtime labor costs and lost output costs: $210
Variance % without Formula Control: 1.96%
Total bad batch costs: $710
Cost of bad batches per year: $34,080
Total Savings
Ingredient savings per year: $5,077
Cost savings per year due to elimination of bad batches: $34,080
Total savings per year: $39,157

The return on investment for this system was realized in four months and as a result the net one year affect on profit margin (Total one year savings minus weighing equipment and installation costs) was $29,157.80!