Baking & Snack - April 2018 - 103

EQUIPMENT
Line Investment

no magic

FIXES

In-depth analysis of the costs and benefits of investment helps bakers make the
right decision when it comes to upgrading or replacing equipment.
by Charlotte Atchley

When issues start cropping up on a production line -
shrinking capacity or longer downtimes - there is no
crystal ball to show bakers what to do or pixie dust to fix
the problem.
"At some point in the process, something will become
the bottleneck," said Jim Kline, president, The EnSol
Group, and Baking & Snack contributing editor. "There
is one point on the production line that will become the
limiting factor."
Often bakers identify those bottlenecks and replace
or upgrade systems to keep things moving. If there's a
marketplace or business demand for something more
drastic - say a jump in capacity, new products or aging equipment - entire production lines may have to be
replaced or retooled. Determining the correct course of
action comes down to a comprehensive look at the root
cause of the problem and an analysis of the costs of upgrading or replacing equipment to discover what will be
the most cost-effective.
"You identify the bottleneck, you evaluate the bottleneck and the return," Mr. Kline said. "When you get to
the point where the economics justify the incremental
volume, and that can't be met in that manner, that's the
point when you start looking at replacement."

Understanding the why
When approaching an investment in the production line,
it's important for bakers to know the motivation behind the

investment. Knowing the answer ensures that they make
the most effective investment. "Begin with a problem statement," said Rowdy Brixey, president, Brixey Engineering
Strategies and Training. "Why are we considering this upgrade or replacement? What is the motivation?"
There is a variety of reasons why a company might be
looking to invest in new equipment or an entire production line. New products, ingredients or packaging will
require a business to reevaluate its capabilities. New sanitation regulations, growing inefficiencies and shrinking
capacity can make bakers pause over whether their current situation is working.
"Capacity would be the first reason to replace an entire line," Mr. Kline said. "Second is cost of operations
and labor. With older lines. there are differences in the
level of automation and degree of sophistication between today and when those lines might have originally
been put into place."
Older equipment might also be struggling to keep
up with the quickly changing regulatory environment.
Machinery that wasn't designed with sanitation in mind
may cause issues in terms of lengthening downtime to
meet today's high standards for food safety.
"Specifically, allergens or gluten-free are relatively new
challenges we're facing," said Karl Thorson, food safety
and sanitation manager, General Mills, Minneapolis.
"That's a whole new standard of clean we're managing on
heritage assets. In some cases, it can take days to disas-

The equipment and components
that make up a production
line won't age at the same
rate. Companies can upgrade
components to extend the life of
a machine or line.
Vito Palmisano

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