Basic Bakery Calculations. A Primer
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1 Basic Bakery Calcula.ons Basic Bakery Calculations A Primer
2 Basic Bakery Calcula.ons A Primer 1: a small book for teaching children to read 2: a small introductory book on a subject 3: a short informa9ve piece of wri9ng
3 Basic Bakery Calcula.ons Standards Efficiencies Yields Downtime Performance Standards Baker s Percent
4 Basic Bakery Calcula.ons
5 Basic Bakery Calcula.ons
6 Basic Bakery Calcula.ons
7 Basic Bakery Calcula.ons Actual Theoretical x 100 = YIELD
8 Basic Bakery Calcula.ons Always use the units of measure for calcula9ons DOLLARS TIMES CASES = DOLLAR CASES???? HOUR HOUR HOUR 2???? DOLLARS DIVIDED CASES = DOLLARS OK HOUR BY HOUR CASE
9 Basic Bakery Calcula.ons Standards
10 Standards Standards are ra.os set as targets or budgets Cases / Hour Dollars / Hour Pounds / Batch Cases / Batch Cases / Minute Pounds / Hour Cuts / Minute
11 Standards Why Use Standards? Basic for all financial calcula9ons Used for financial projec9ons Sets the expecta9on Comparisons to other plants Comparisons to other lines Indica9on of the process efficiency Let s you know how you are doing
12 Standards Labor Crewing per shir Labor Dollars per Case Labor Dollars per Hour Efficiencies Cases per Hour Pieces per Machine Pounds per Hour Yields Cases per Batch Pounds per Batch Pounds per Case
13 Standards Labor $ $ Ingredients $/CS $ Packaging
14 Standards Crewing Labor Sets an expectation of crewing required to properly staff the production line Takes into account the labor rates for various positions Direct input cost of personnel resources assigned to a specific task in a period of time
15 Standards Cookie Company Chocolate Chip Cookie Labor Calculations TTL Crew Description Rate/Hour Rate/Hour 1 Set Up $ 9.05 $ Fork Lift Op $ 9.90 $ Mixers $ 9.95 $ Depositor OP $ 9.99 $ Oven OP $ $ Tray Packers $ 8.50 $ Case Packers $ 8.50 $ Palletizer $ 8.65 $ Fork Lift Op $ 9.90 $ 9.90 TOTAL $
16 Standards Throughput Sets an expectation of salable units produced over a specified period of time. Adds the productivity portion of the process to the labor dollars used. Established how effectively the labor dollars are utilized.
17 Standards Cookie Company Chocolate Chip Cookie Throughput Calculations Pieces per minute 480 Pieces per bag 10 Bags per minute 48 Bags per case 12 Cases per minute 4 Minutes per hour 60 Cases per hour 240
18 Standards DOLLARS DIVIDED CASES = DOLLARS HOUR BY HOUR CASE $ per hour 240 cases per hour $ = $ / case
19 Standards Other Standards Are Developed the Same Way Packaging usage Individual ingredient yields Batch yields Baking parameters Scrap factors Bake out
20 Standards Examples of standards you encounter? Do you have your own personal standards?
21 Standards Cau.on When SeSng Standards Are they realis9c & repeatable Are they achievable Are there system constraints & boylenecks Are produc9on lines different Do you have a say in se[ng the standards Don t sandbag / don t overreach
22 Efficiencies Standards Efficiencies
23 Efficiencies Efficiencies measure how we actually performed compared to the theore9cal standard. Actual = Performance Theore9cal
24 Efficiencies Efficiencies measure how we actually performed compared to the theore9cal standard. 1,900 cases = % 1,920 cases
25 Efficiencies Labor cost per shit for 8 hour shit Actual Theore9cal Variance Labor $ 1,520 $ 1,435 ($ 85) Cases 1,900 cs 1,920 cs ( 20 cs) $/Case $ /cs $ /cs ($ )/cs
26 Efficiencies Labor $ $ Ingredients $/CS $ Packaging
27 Down.me Cau.on When Tracking Efficiencies Do not trust any indica9ng device meter/gauge Do not trust machine speed se[ngs Do not trust bulk scale delivery systems Do not trust mixers are following the book Double check all read outs by actual coun9ng Start with the source document for the standard
28 Basic Bakery Calcula.ons Standards Efficiencies Yields
29 Yields Yield, First-time Yield (unit-based) the number of units that pass a particular inspection compared to the total number of units that pass through that point in the process. Final Yield (unit-based) the number of units that pass the last step in a series of steps in a process compared to the number of units the entire process started with. Throughput Yield (defect-based) the probability that all defect opportunities produced at a particular step in the process will conform to their respective performance standards. Rolled Throughput Yield (defect-based) the probability of being able to pass a unit of product or service through the entire process defect-free. Normalized Yield (defect-based) the geometric average throughput yield one would expect at any given step in the process. Analogous to the typical yield. For a k -step process, the normalized yield would be the kth root of the rolled throughput yield. A note of caution: This metric can be misleading if the throughput yields of the process steps vary a great deal.
30 Yields Actual x 100 = YIELD Theoretical
31 Yields Actual Ending Inventory Based up inventory change X 100 = Yield Theore.cal Ending Inventory Theore.cal Usage Based upon usage X 100 = Yield Actual Usage
32 Yields Yields Sets an expectation of input resources used by the process compared to the theoretical calculation Considers the waste and scrap factors to the cost equation. Established how efficiently the process is turning raw ingredients into saleable product.
33 Yields Yields measure the actual amount of an input resource used compared to the theore9cal standard. Actual = Performance Theore9cal
34 Yields Ingredient Yield The ratio of the amount of an ingredient purchased for use in a formula to the value of that ingredient in the finished case. The Theoretical is calculated using formula and cases produced. Caution do not use actuals for theoretical calculations
35 Calculating theoretical usage (Allowance per unit) times (Units sold) Formula usage per case lbs 4.00 Cases produced cs 1,000 Theoretical usage lbs 4,000 Yields Ingredient Yield Cookie Company Butter Pounds Beginning inventory + 12,000 Invoiced receipts + 2,000 Theoretical usage by formula - 4,000 Theoretical ending Inventory = 10,000 Actual ending inventory count 9,500 Ingredient Yield 95%
36 Yields Processing Yield The ratio of raw materials going into the process compared to the finished product that is packaged. Determines how much dough is required for a specified number of case packaged. An analysis of wet piece weight compared to finished piece weight.
37 Yields Making a batch of cookies from a box Recipe states add 4 cups of milk and 2 sticks of butter to pre-mix Makes oz. cookies You follow directions and bake You only get 97 cookies What went wrong? Why did you not get 100 cookies Actual Theoretical x 100 = YIELD x 100 = YIELD 97% = YIELD
38 Yields Cookie Company Chocolate Chip Cookie Formula Ingredient Pounds Flour 100 Sugar 25 Shortening 35 Salt 5 Butter 21 Soda 2 Chocolate Chip 40 TOTAL 228 Yield 1 batch 228 pounds 1 batch 3648 ounces 1 cookie 4 ounces 1 batch 912 cookies
39 Yields Cookie Company Chocolate Chip Cookie Formula Ingredient Pounds Flour 100 Sugar 25 Shortening 35 Salt 5 Butter 21 Soda 2 Chocolate Chip 40 TOTAL 228 Yield 1 batch 228 pounds 1 batch 3648 ounces 1 cookie 4 ounces 1 batch 912 cookies
40 Yields Piece Weight Wet Weight the weight of a each deposited dough piece required to achieve the proper baked piece weight Dry Weight / Finished Weight / Baked Weight the weight of the finished cookie in the package at time of packing Process Losses must be taken into consideration
41 Yields Process Losses Waste can be measured at each step of the process by calculating units or weighing scrap Known process losses such as bake out must be considered Never accept any loss number as a given
42 The Process Ingredient Mixing Forming Baking
43 The Process Topping Sandwiching Packaging Warehousing
44 Basic Bakery Calcula.ons Standards Efficiencies Yields Downtime
45 Down.me Downtime Downtime measures the amount of time during production that a machine or process was not available for its function. Downtime should be tracked to the most basic piece of equipment in the process
46 Down.me Cau.on When Tracking Down.me Was the piece of equipment suppose to run Was equipment just on or working to standard Is the equipment used for surges What is the expecta9on of the equipment What is being used to record down9me Can counters be used for efficiency measurement
47 Basic Bakery Calcula.ons Standards Efficiencies Yields Downtime Performance Standards
48 Cookie Company Product Cost Calculations Chocolate Chip Cookie Finished Weight Throughput Weight/piece Pieces/row 12 Pieces/bag 6 Rows/minute 20 Bags/case 12 Pieces/minute 240 Pounds/case Cases/minute 20 Cases/hour 1,200 Pounds/hour 8,640 Labor Line Efficiency 95.0% EE Description Rate/hr Labor/hr Yielded cases/hr 1,140 1 Set up $ 8.00 $ Mixing OP $ 8.50 $ 8.50 Bake Out 10.0% 1 Forming OP $ 9.00 $ 9.00 Yield Loss 10.0% 1 Oven OP $ 9.00 $ 9.00 Scrap 3.0% 1 Working Lead $ $ Overfill 2.0% 6 Packer $ 8.00 $ Total Losses 25.0% 1 Case Former OP $ 8.50 $ Case Packer $ 9.00 $ Palletizer $ 9.00 $ Working Lead $ $ Labor Cost/Case TOTAL $ $
49 Crewing Schedule Brand Product Test Data Iced Cookie Date 1/23/2013 Packaging Foot Oven THROUGHPUT Depositing Packaging Efficiency Pieces per row Pieces per package Oven efficiency 85% Rows per minute Packages per tray Trays per carton Cartons per case Pieces per minute 0 Pieces per case 0 Cases per hour #DIV/0! CREWING Position Count Rate Labor Position Count Rate Labor Position Count Rate Labor Line Leader Icing Operator Ingredient Handling Inspector Ingredient Set Up Wrapper Infeed Mixer Wrapper Operator Processing Oven Operator Quality Assurance Carton Infeed Cartoner Operator Maintenance Case Packer Sanitation Palletizer Foreman Fork Lift Operator Shipping Housekeeping Relievers Subtotal Subtotal Subtotal Labor cost per hour 0.00 Total headcount 0 Line efficiency 80% Labor cost per case #DIV/0!
50 Basic Bakery Calcula.ons Standards Efficiencies Yields Downtime Performance Standards Baker s Percent
51 Baker s Percent
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