250% increase in throughput in one season

Our Client – Cedenco Hastings

Cedenco Hastings was established in 1986 and is a fruit and vegetable processing facility with locations in Hawkes Bay and Tairawhiti. They are a seasonal operation with additional staff during the busy harvest and processing months.

This study focuses on two production areas in the Hastings site:

  • Hastings Food Ingredients (HFI), which produces diced and sliced apples,
  • Apple Juice Concentrate (AJC)

Challenge – Unlock Capability

Over the previous few years, there had been a steady and significant decline in overall yield. A new Operational Leadership team in November 2021 wanted to turn this trend around and asked Productivity People to help unlock capability in both its people and the factory using the Productivity Programme.

The Approach – Productivity Programme

Completing an initial Leading and Managing Change workshop, the Senior Team branded the program the Cedenco ‘Performance Improvement Program’ (PIP).

An initial assessment against the Productivity Wheel© was carried out. The results showed that, although there was a maturity in some practices (H&S, Structured Problem Solving, Asset Care, and Quality) there were significant gaps in most of the foundation practices, providing so-called ‘low-hanging fruit’ opportunities: Easy wins with relatively low inputs.

A 90-day plan was developed to focus the efforts of the team and stop them from trying to fix everything at once:

  1. DMS or Daily Management System
  2. Waste Elimination
  3. Structured Problem Solving

A Daily Management System (DMS) was set up in two levels, with three early morning Level 1 meetings for the production areas and engineering teams, as well as a Level 2 meeting attended by key staff from the Level 1 and the Site Management. The metrics or KPIs were selected from the strategy, ensuring their appropriateness for each team. A successful DMS metric must be able to be influenced by the teams themselves as well as being connected to the overall business strategy.

Loss and Waste Analysis identified opportunities for Waste Elimination and Structured Problem Solving. The team’s structured approach identified some significant causes of yield loss and with a whole team approach they implemented robust fixes with immediate results.

The Results

The initial loss and waste analyses enabled Cedenco to quantify the improvements in the two production areas in Hastings:

  • The throughput of diced and sliced apples in HFI went from 12 tons per day at the start of the 2022 season to regularly exceeding the target of 30 tons per day and on occasion getting close to 40 tons during mid-season.
  • The average yield of the Belt press improved around 7% from an average of 56% to 63%.
logo of Cedenco foods Ltd
Apple press machinery
graph of Cedenco yield

The average yield of the Belt press improved from around 56% to 63%.