Adapting to Customers’ Needs with Productivity Software LSI

Introduction

Koch Foods, a leading poultry processor in the U.S., has built a strong reputation for producing high-quality products and providing excellent service throughout the poultry growing, manufacturing, and distribution processes. With a commitment to adapting quickly to changing customer needs and market trends, Koch Foods has become one of the largest vertically integrated poultry processors in the country over the past 30 years.

Challenges Faced by Koch Foods

During its growth journey, Koch Foods faced several operational challenges, especially at its production plant in Fairfield, Ohio. One of the major issues was the lack of a proper planning mechanism to anticipate the impact of increased demand on production capabilities. This resulted in constant changes in orders, products not arriving on time, and incorrect trim and sizing of meats, leading to the need to shut down production lines and restart them.

Relying on Tribal Knowledge

Without a clear understanding of cause and effect, Koch Foods often made ad-hoc adjustments to work orders, leading to inefficiencies and a constant state of “fire drill” mode for planners and schedulers. The absence of a production planning method made it difficult to account for growth, resulting in a heavy reliance on tribal knowledge and gut instincts. Furthermore, scheduling around allergens and managing ingredient variations posed additional difficulties, leading to costly setups, cleanouts, and changeovers.

Streamlining Operations with Opcenter APS Software

To address these challenges, Koch Foods turned to ATS Lean Scheduling (LSI), a trusted partner of Siemens Digital Industries Software, to implement Opcenter APS software and streamline its operations. Opcenter is part of the Siemens Xcelerator business platform, which offers a comprehensive suite of software, hardware, and services.

Finding the Right Solution

Stewart Ward, the VP of Information Systems at Koch Foods, initially explored material requirements planning (MRP) systems but found that most of them would replace the existing enterprise resource management (ERP) system, which was not the desired outcome. Ward then looked into planning and scheduling solutions but found that most of them were tied to ERP systems. Finally, Ward came across Opcenter APS, a standalone APS solution, through a trusted recommendation.

Implementing Opcenter APS

Koch Foods partnered with LSI to implement Opcenter APS in several ways. LSI began by conducting an on-site assessment to thoroughly understand Koch Foods’ challenges, goals, and requirements. This assessment allowed LSI to analyze Koch’s data and processes in detail. LSI also developed customized reports, including an MRP report that utilized the schedule and pegging to highlight shortages, providing visibility into the company’s purchasing needs to meet short-term goals.

Proof of Concept Confirms the Right Solution

Following the assessment, LSI carried out a proof of concept using a sample of Koch’s own data, which confirmed that Opcenter APS was the perfect solution for the company. The general manager at the Fairfield plant, Brian Reisen, was impressed when he saw the Opcenter APS planning interface on the screen, stating, “that’s exactly what we’re looking for… that’s what we want to be able to get to.”

Collaborative Approach and Deep Understanding

LSI’s collaborative approach, deep understanding of Koch’s needs, and ability to translate requirements into the solution played a crucial role in building consensus and confidence among the stakeholders. With Opcenter APS in place, Koch Foods is now equipped to maintain its growth trajectory and improve operational efficiency without significantly increasing its workforce.

Conclusion

Koch Foods’ partnership with LSI and the implementation of Opcenter APS have allowed the company to overcome its operational challenges and adapt more effectively to changing customer needs. By streamlining production planning and scheduling, Koch Foods has achieved greater efficiency and reduced the reliance on tribal knowledge, leading to improved productivity and customer satisfaction. With the right productivity software LSI, Koch Foods is well-positioned for continued success in the poultry processing industry.