Phase one: CDC Factory sets up $1M production costs savings for Pinnacle Foods
Mountain Lakes, N.J.-based Pinnacle Foods Group will use CDC Factory global manufacturing operations management (MOM) solution, offered by CDC Software , at three of Pinnacle’s largest plants in the U.S. during Phase One of the project, with an additional four plants during Phase Two.
Pinnacle plans to save $1 million in annual production costs after Phase One, and a total of $4 million annually after completion of Phase Two.
Based on a benchmark study conducted by CDC Factory consultants and the Pinnacle Foods project team, CDC Factory is expected to provide significant productivity improvements.
Pinnacle, with net sales of $1.54 billion, makes some of the most venerable brands in the U.S., including Duncan Hines baking mixes, Hungry-Man and Swanson Dinners, Mrs. Paul’s frozen foods, Vlasic pickles, and Mrs. Butterworth’s syrups.
“Our due diligence validated the out-of-the box functionality that eliminated the need for costly customizations or a time-consuming project to build an MES [manufacturing execution system],” says Tony Hipszer, CIO of Pinnacle Foods. “This project will focus on improving staff performance by using the manufacturing operations management system that CDC Factory delivers out-of-the-box. We expect this to pay off by increasing our competitive advantage through lowering production costs.
“Our executives are very experienced in the typical plant solution offerings from plant automation and OEE measurement companies,” Hipszer adds. “It was immediately apparent that CDC Factory was completely different than other solutions and offered an impressive implementation that could help us increase our profitability quickly. We believe our greatest opportunity for margin improvements is changing the way the operators and supervisors do their work.”
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Annual Salary Survey
Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.
There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.
But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.
Read more: 2015 Salary Survey