2021 Productivity Benchmark Report

Fourth Biennial
Results from 700 Manufacturers using the
Redzone Connected Workforce Solution
Contents
01 EXECUTIVE INTRODUCTION 4 07 APPENDIX
7.1 Overall Equipment Effectiveness (OEE) 28
02 BACKGROUND TO THE STUDY 7.2 Calculating Savings 29
2.1 Redzone History and Growth 6 7.3 Industry Segment Definitions 30
2.2 The Redzone Community 6 Bakery 30
2.3 Scope of the Study 7 Consumer Packaged Goods / Nutraceutical 30
Dairy, Juices and Beverages 30
03 BENCHMARK STUDY CRITERIA
Produce 30
3.1 Continuous Improvement Maturity 8
Ingredients 30
3.2 Baseline OEE 8
Meat, Seafood and Pet Foods 30
3.3 Variance Between Manually Reported and Actual OEE 8
Prepared Foods 30
3.4 OEE Uplift and Productivity Improvements 9
Snack Foods / Confectionery 30
3.4.1 Sustainability 9
Soups, Sauces, Dips and Dressings 30
3.4.2 Financial Impact 9
7.4 What is the Redzone Connected Workforce Solution? 30
04 BENCHMARK RESULTS Rapid Time to Value 31
4.1 Continuous Improvement Maturity 10 Implementation Time 31
4.2 Baseline Data – OEE Starting Points 11 Frontline Communication Platform 31
4.2.1 Baseline OEE by Market Segment 13 Redzone Productivity Module 31
4.2.2 Variance Between Reported and Actual OEE 14 Redzone Compliance Module 31
4.3 OEE Uplift and Productivity Improvement 14 Redzone Reliability Module 31
Low Baseline OEE – Low Maturity Gainers 17 Coaching 31
Low Baseline OEE – High Maturity Changers 18
High OEE Baselines – Low Maturity Accelerators 18
Fig 1: Number of Plants Running Redzone by Year.................................................................................................. 6
High OEE Baselines – High Maturity Sustainers 19 Fig 2: Plants by Market Segment........................................................................................................................................7
4.4 Sustainability 20 Fig 3: Plants by Channel..........................................................................................................................................................7
Fig 4: Plant Revenue.................................................................................................................................................................7
4.4.1 OEE Increase Over One Year 20
Fig 5: Example CI Maturity Rating Spider Chart........................................................................................................10
4.4.2 OEE Increase Over Three Years 21 Fig 6: Distribution of Plants’ CI Maturity Rating.......................................................................................................... 11
4.5 Annualized Savings 22 Fig 7: Distribution of Baseline OEE Across 300 Plants........................................................................................... 11
4.5.1 Illustration of Savings 22 Fig 8: Distribution of OEE by CI Maturity...................................................................................................................... 12
Fig 9: Baseline OEE by Market Segment....................................................................................................................... 13
4.5.2 Intangible Benefits 23
Fig 10: Reported Average OEE vs. Actual......................................................................................................................14
4.5.3 Cultural Transformation 23 Fig 11: % Points of OEE Uplift Distribution Across 300 Plants.............................................................................14
Fig 12: Detailed and Average OEE Uplift Across 300 Plants................................................................................. 15
05 WHAT DID THE MOST SUCCESSFUL PLANTS DO DIFFERENTLY? Fig 13: Regression Analysis Comparing Productivity Increase.............................................................................16
5.1 Leadership Team Participation 24 Fig 14: OEE Uplift for Low Baseline / Low Maturity – Gainers.............................................................................. 17
5.2 Rigorous Forum Discipline 24 Fig 15: OEE Uplift for Low Baseline / High Maturity – Changers.........................................................................18
Fig 16: OEE Uplift for High Baseline / Low Maturity – Accelerators..................................................................18
5.2.1 Plant-wide Communications, Recognition and Celebration 25
Fig 17: OEE Uplift for High Baseline / High Maturity – Sustainers .....................................................................19
5.2.2 Practice 25 Fig 18: Initial 90-Day Benchmark Results Matrix .......................................................................................................20
5.2.3 Stayed on the Redzone Journey 25 Fig 19: Average OEE Point Uplift Over the First Year with Redzone................................................................. 21
Fig 20: Average Points of OEE Increase in the First Three Years Using Redzone................................................ 21
06 CONCLUSIONS 26 Fig 21: Initial 90-Day Benchmark Results Matrix with Savings Estimates Included...........................................23
Fig 22: Productivity Uplift Pareto Across the 700 Plant Community...............................................................24
Fig 23: OEE Uplifts Available from Continuing the Redzone Journey..............................................................25
 01 EXECUTIVE INTRODUCTION

We are delighted to introduce our fourth biennial Productivity Benchmark Report. Since 2014 we have been proud to publish What Failure Risks Does The Redzone Connected Workforce Solution Eliminate?
the productivity results from this rapidly growing community that is now 700 plants strong. This latest report focuses on Efforts that have failed have much in common, but the impact of these factors is widely under-recognized within manufacturers
the most recent cohort of 300 plants that joined the community between 2018 and 2020. The 300 manufacturing plants embarking upon a lean journey:
are located in North America, Europe and, for the first time, includes a small population of plants in the Asia-Pacific region. 1. Not aligning goals and levels of participation between leaders and frontline workers
The analysis shows the effect on productivity that occurs with the introduction of a digital production system, incorporating 2. Not managing change effectively to balance the:
lean production techniques applied with the frontline teams, combined with a mobile application to make them stick. a. People factors (roles, targets, skills, recognition and feedback)
It provides evidence of very specific productivity and savings goals for manufacturers that have joined the Redzone customer b. Process factors (methods, tools, measurement, forums)
community. The goals are set out below: c. Technology factors (fitness for purpose, real-time data, social networks, mobile first, ease-of-use)
3. Using failed learning methods like PowerPoint-based classroom training (teaching insights and principles) that are
All plants in this study did the same 90-Day Program to accomplish five measurable lean journey goals:
difficult to apply in the real world
1. A visual factory including Overall Equipment Effectiveness (OEE) measurement visible to all, plant-wide and in real-time
2. Coached-in foundational lean and problem-solving skills to the operators and supervisors on the job The goal of a production system is to provide the workforce with a means of coordinating the CI efforts in the plant with the
goals of its leadership. Until now there have only been manual production systems designed and built by CI professionals in
3. Improve the OEE by at least 8 percentage points by the end of day 90
the world’s most disciplined and sophisticated businesses. Often relying on disparate manual systems, they have required
4. Achieve mid six figure cost savings for smaller plants and seven figure cost savings for larger plants, verified by the
dedicated teams of professionals to feed them with daily data to ensure compliance—at great expense.
plant’s finance function
5. Sustain all gains made in the first 90 days and continue improving over the long term The investment necessary to implement such a system is beyond the capacity and capability of small to mid-sized companies
and offers no realistic return on investment. For larger companies, while these systems may have provided a foundation,
In this introduction, I outline the reason why the world’s most successful companies target goals like these, share the general
they have been forced from the top-down, overwhelming the frontline teams with yet more cumbersome manual tasks to
success rate for everyone else (which is not good), and highlight three big mistakes usually found when they failed.
perform.
Finally, I share the evidence that these mistakes are a thing of the past for what is now the world’s largest community of
Food, Beverage (F&B) and Consumer Packaged Goods (CPG) manufacturing plants in those industries.
The Redzone Connected Workforce Solution
The explosion of mobile and social technologies, combined with lessons from behavioral performance coaching in sports,
The Objective allowed us to create a digital production system that works for F&B and CPG manufacturers of all sizes offering quick
Plants at companies like Toyota are consistently benchmarked best in class and return more on capital invested. They are
adoption on the frontlines with rapid results.
safer, have better productivity, better systems for compliance, customer service and employee engagement and retention.
Workers for companies like these have a reputation for loyalty and are proud of the part they play in their organizations’ This Redzone Connected Workforce Solution gives them the same operating advantages enjoyed by organizations like
success story. These plants exhibit a culture of improvement and attribute success to what they call their production system Toyota, without the armies of industrial engineers and CI personnel—at a much lower cost. This report shares the evidence
approach; Toyota having the first widely publicized example, called, the Toyota Production System. Most owners and from a community of 700 such plants that implemented it.
investors want their plants to have a culture that produces results like theirs.
The Evidence
The Failure Record With detailed performance data from 700 plants and over seven years of production history, this dataset provides the most
In their quest to get to this future state, manufacturers collectively spend billions of dollars on technology systems, consultants comprehensive, empirical evidence base for productivity improvement anywhere in the industry.
and training. Most of which is also wasted because investing in tools and skills without the presence of organizing principles These results defy many perceived wisdoms about CI, the workforce’s appetite for change and the ability to sustain step-
and the behavioral impact of a production system, leads to failed projects and witheringly small productivity gains; which change leaps in performance. It is not intended as an explanation of how this is accomplished. However, Appendix 7.4, What
disappear altogether after a few months due to a lack of sustainability. is the Redzone Connected Workforce Solution? offers options for the reader to explore this further for their own plant.
Symptoms of failure are easy to recognize and are all too common – Continuous Improvement (CI) experts fighting an uphill This evidence from a community of 700 organizations proves the Redzone Connected Workforce Solution approach turns
battle in the plants, while a culture of improvement is nowhere to be seen. Frontline workers feeling left out and jaded by the dismal history of failures by traditional methods on its head, accomplishing a 100% success record in 90 days and—even
well-intentioned management fads, consultants’ promises or technology systems. Ironically, it is usually the frontline workers more remarkably—sustaining gains over the long term.
that end up at the receiving end of the blame.
I hope you find it a worthwhile read and that it inspires you to action.
If you are thinking that you have the wrong people or tools to be successful, bear in mind that those who succeed have

Richard Tester
similar people and tools to you; what they have done is taken a production system approach to combine them differently. It
is this production system approach, in combination with tools and skills, that the 700 plants in the Redzone Community have
been exposed to. The results are quite different as this study shows.
Co-CEO, Redzone

4 2021 Productivity Benchmark Report – Fourth Biennial 5

 02 BACKGROUND TO THE STUDY

2.1 Redzone History and Growth Fig 2: Plants by Market Segment

Since launching the Redzone Connected Workforce Solution in 2013, the number of plants in the Redzone Community has
Prepared Foods Snack Foods &
grown to more than 700 in 2021, representing the largest—and fastest growing—community of food, beverage (F&B) and Confectionery
consumer packaged goods (CPG) manufacturers on a common digital production system anywhere in the world.
102 97
Soups, Sauces,
Fig 1: Number of Plants Running Redzone by Year Dips & Dressings
49
Ingredients
73
700
Produce
99
103
Meat, Seafood
54 & Petfood
27 96
Dairy, Juice &
Beverage
CPG/ Bakery
Nutraceutical

Fig 3: Plants by Channel Fig 4: Plant Revenue

Number of Plants

$10B+ $10M-$40M

11% 8%
$4B-$10B
12% 22% $40M-$100M
36% Retail
Mix of Retail/ 44%
Food Service 100% 100%
13%
$1B-$4B
20%
20% 14%
$100M-$500M
Food Service $500M-$1B

Year 2.3 Scope of the Study

Since launching Redzone, the company has conducted a study every 2 years to provide an industry benchmark that quantifies
Every plant represented in this benchmark report utilizes the Redzone Connected Workforce Solution software and the impact of the solution for community members. As a cloud platform that is aggregating data directly from production
continuous improvement activities across all production lines. Therefore, the results and findings in the report are generated lines and combining it with context from front line teams, the data provides a uniquely accurate representation.
from the largest dataset of its kind.

# of Avg Points Avg improvement

2.2 The Redzone Community Cohort Year Description of Enhancements
Plants of OEE Uplift in Productivity
Redzone customers become part of a community who share ideas, best practices and lessons learned from their partnership
1 2013-2014 OEE visibility and social communication 50 6.6% 11.8%
with Redzone. Because that partnership transcends the typical customer-vendor relationship, Redzone customers will be
referred to as community members for the remainder of this report. 2 2015-2016 Win the Day routines and standard work 150 7.1% 12.3%
The following charts show the various breakdowns of the 700 plants in the Redzone customer community by market, Daily vital signs, problem solving
3 2017-2018 200 7.8% 14.5%
channel and revenue. A unique quality of this community is that plants range from small, privately held companies with $10M and deliberate practice
in revenue to the world’s largest F&B and CPG manufacturers with a global network of plants, comprised of multiple divisions Re-tooled coaching and technology for frontline
4 2018-2020 300 12% 22%
and markets. The segments that these companies serve span from ingredients for other manufacturers, products for food engagement, recognition, celebration
service and finished goods products for retail. Further, the sample is fairly evenly split with approximately 36% Retail, 20%
Food Service and 44% mix of both.
The 2018 – 2020 cohort is Metric Count Metric Count
the largest data set that Plants 300 Production Runs 6,555,000
has been analyzed at 300
People (Frontline Workers) 73,500 Production Lines 2250
plants and includes data
from the following: Production Shifts 1,980,240

6 2021 Productivity Benchmark Report – Fourth Biennial 7

 03 BENCHMARK STUDY CRITERIA

This fourth edition of the report includes the following benchmark criteria: 3.4 OEE Uplift and Productivity Improvements
In practice, it is not the static value of OEE, but rather the trend that is most important. Leaders desire an increasing OEE and
Criteria Key Performance Indicator may ask for explanations in the case of a decreasing OEE. This report benchmarks the uplift between the baseline OEE and
the 90-Day OEE resulting from the first 90-Day Coaching Program for focus lines. Focus lines are identified and agreed to
CI Maturity CI maturity rating (1-10) based on assessment by qualified CI Coach
with the plant leadership team and typically include high-volume lines that represent 80% of the plant volume. Note: while
Baseline OEE Average starting OEE on focus lines the system is always deployed plant wide, coaching efforts are deployed disproportionately on focus lines.

The variance between the manually reported OEE and actual electronically At the end of the 90-Day Program, a detailed success assessment is performed. This assessment analyzes the trends of the
Reporting Variance 90-Day Program and the official result is signed-off by members of the plant leadership team (always including the finance
captured and calculated OEE
leader). Once the results have been scrutinized and validated, a townhall meeting is conducted with the entire plant team,
OEE Uplift & Productivity Improvement Percentage points of OEE uplift and corresponding productivity improvement
where the result is celebrated, and specific recognition is provided to those who contributed the most to the change. It is this
Sustainability Percentage point of OEE uplift following 90-Day Program validated OEE uplift number that is used in this report; therefore, the system data has been verified for each of the plants in
the sample.
Financial Impact Estimated Annualized Savings
While points of OEE represents a common measure, it does not help in making useful comparisons between plants.
Productivity is a normalizing percentage which calculates the change in OEE divided by the starting point for each plant.
See below for details.

3.1 Continuous Improvement Maturity

A plant’s CI maturity rating is an audit score between 1-10. The audit is conducted by a qualified coach via shop floor Calculating Productivity
observations and interviews with frontline employees and plant leaders. The assessment considers cultural and systemic Example of calculating the productivity improvement for a 40% OEE with a 10% uplift
elements such as goal alignment, results, recognition, daily CI routines, Kaizen, and much more. A plant with a score between
0 and 5 is considered to be at the beginning to foundational stages of CI maturity. A plant with a score above 5 is considered
to be between mature and comprehensive with regards to CI.
OEE Uplift (10%) Represents a 25%
Productivity% = = 25% improvement in
Baseline OEE (40%) productivity
3.2 Baseline OEE
Overall Equipment Effectiveness (OEE) is a KPI developed by Seiichi Nakajima in the 1970s to evaluate how effectively a
From a business perspective, it is this productivity improvement that is the important
manufacturing operation is utilized. It remains the most commonly used metric for measuring efficiency in manufacturing
metric as it directly correlates with the additional free capacity that is unlocked.
across the world.
Alternatively, the labor + overhead costs can be dollars saved in non-capacity constrained environments.
OEE is a non-financial calculation of production rate, quality, and line availability that result in production output being
measured against the theoretical maximum (TMax) capability of the production process. It is therefore one of the most
reliable ways to monitor and compare production efficiencies. It identifies the percentage of manufacturing time that is
truly productive. An OEE of 100% signifies a perfect shift; meaning, only good products are produced (100% quality), at
the maximum speed (100% performance), and with no downtime (100% availability). See Appendix 7.1, Overall Equipment
Additional—and significant—OEE uplifts are achieved after the first 90-Day Program by all community members who added
Effectiveness (OEE) or additional background on OEE.
90-Day Programs for Compliance and Reliability excelling in the long term. See Chapter 5, What Did the Most Successful
OEE measures efficiency against a common set of standards, and for this report, is calculated using automated signals Plants Do Differently? for more details.
directly from input and output sensors, PLC’s and/or IIoT devices at each line. It is important to understand that not all
3.4.1 Sustainability
companies calculate OEE the same. Whereas Redzone does allow flexibility in how OEE is calculated (within best practice
Achieving an initial improvement in performance is only half the battle; so the results are analyzed for the initial step change
guidelines), this report normalizes the method of calculation, ensuring the benchmark accurately compares apples to apples.
over the first 90 days and then over the following 1-year and 3-year periods.
The baseline OEE is always reviewed and agreed upon with the plant leadership team in the first ten days of the deployment
to measure the success of the deployment against. This benchmark focuses primarily on the first 90-day increases, but the trendline for Redzone Community members continues
to improve during the first year and then year-over-year which is described in section 4.4 Sustainability.
The first number that is reported is the plant’s baseline OEE, against which a subsequent increase in OEE is compared over
a period of time. This baseline number provides a benchmark for industry and is compared between plants that are early in 3.4.2 Financial Impact
their improvement journey vs. more mature plants. For the purposes of summarizing; OEEs ranging from 20% and 60% are For the purpose of this report, financial benefits are expressed in savings or reduced costs, where a plant produces the same
considered low-to-moderate and OEEs above 60% are considered moderate-to-high. volume with fewer resources. Reduced costs are most commonly realized through reduction of overtime, running fewer (or
shorter) shifts, less temporary labor and reducing variable overhead as a result of fewer production hours in one or more
3.3 Variance Between Manually Reported and Actual OEE areas. For those plants that are not truly capacity constrained, this is the best measure of the financial impact.
Having introduced this technology in 700+ F&B and CPG plants, it is commonly observed that plants tend to overstate their However, those plants that are capacity constrained enjoy an impact to both the top line revenue by increasing throughput
OEE performance before deploying a digital solution. This was not generally a purposeful fudging of the numbers but rather without additional capital expenditures and even more considerable increases in gross margins where the fixed cost of each
a flaw in manual, paper-based reporting systems and methodologies. The baseline numbers in this report come from real- unit is diluted across the increased output. Increased throughput is achieved by running the same number of production
time automated data collection and therefore represent the actual baseline OEE. hours, but with higher rates, less product loss, and less downtime (whether planned or unplanned).

8 2021 Productivity Benchmark Report – Fourth Biennial 9

 04 BENCHMARK RESULTS

4.1 Continuous Improvement Maturity Fig 6: Distribution of Plants’ CI Maturity Rating

Redzone Community members’ continuous improvement maturities are audited by a Redzone qualified coach before
launching their 90-Day Program using a scale from 1-10 (ten being the most complete and advanced continuous improvement
culture). The audit is comprised of five common criteria shown in Fig 5 below, resulting in an average score for each plant.
By including this variable, we are able to compare results between plants that are early in the improvement journey vs. those
that are very mature and have robust improvement methodologies. These methodologies are well understood, applied and
are delivering results that align with customer needs and the business priorities.

Number of Plants
Fig 5: Example CI Maturity Rating Spider Chart

Average Continuous Improvement Maturity

Continuous Improvement Maturity Rating [n = 300]

4.2 Baseline Data – OEE Starting Points

To eliminate the negative effects of OEE over-reporting (as described in 3.3), baseline OEE was measured by aggregating
the observed OEE during the 1-2 weeks prior to launch and the 2 weeks following. The 90-Day OEE was measured over the
last 2 weeks of the 90-Day Program. The baseline OEE varied dramatically across the sample size as indicated below, ranging
from the 20s to the high 80s. Across the 300 plants the average OEE baseline was 54%.

Fig 7: Distribution of Baseline OEE Across 300 Plants

Number of Plants
The resulting score then classifies a plant in one of the two following categories:
None to Foundational CI (Rating 1-5): The leadership team is familiar with the concepts of lean manufacturing, six sigma, or
other continuous improvement methodologies, but they have not been significantly deployed throughout the organization.
Some tools may be in place to drive problem-solving and waste reduction for frontline employees, but the plant team would
acknowledge that they are either just starting or in the relatively early stages of the journey.
Mature to Advanced CI (Rating 6-10): All plant employees are aligned around common goals and proactively collaborate
across functions to drive improvement. Continuous improvement is seen as a part of everyone’s core responsibilities,
visual management is clear and obvious, and systems are in place to drive standard work and daily operational cadences.
The common skills associated to root cause analysis and problem solving—Kaizen, 5S, SPC—are well understood from
management to the plant floor and are applied on a day-to-day basis.
The distribution of these ratings by number of plants is illustrated in Fig 6 opposite:
Baseline OEE

10 2021 Productivity Benchmark Report – Fourth Biennial 11

 04 BENCHMARK RESULTS (CONT’D)

With such a wide distribution of baseline OEE, the data was then analyzed to identify if there was a difference between 4.2.1 Baseline OEE by Market Segment
plants that were rated as earlier in their CI journey vs. plants that were more mature and exhibited a more comprehensive One common question is in regard to the variation in baseline OEE across the different market segments in F&B and CPG.
CI program. It is interesting to see that the average starting points illustrated in Fig 9 do not vary statistically from one segment to the
next. Details and findings for these segments can be found in the appendix in Section 7.3.
The data below clearly demonstrates that those plants that exhibited a more mature CI program had a higher starting OEE
vs. plants that were earlier in their maturity curve. Those companies in the early stage showed an average starting point of
47.1% compared to more mature plants that showed a starting point of 63.7%. In both cases, these starting benchmarks show
the enormous productivity opportunity that is available to F&B and CPG companies

Fig 8: Distribution of OEE by CI Maturity Fig 9: Baseline OEE by Market Segment

None-to-Foundational CI Maturity [n = 190] Mature-to-Comprehensive CI Maturity [n = 110]

Number of Plants

Baseline OEE
Bakery CPG / Dairy, Juices Produce Ingredients Meats, Prepared Snack Soups,
Nutraceutical & Beverages Seafoods & Foods Foods & Sauces, Dips
Pet Foods Confectionery & Dressings
Baseline OEE Baseline OEE

Although this finding is relatively intuitive, it does validate the fact that these CI techniques (visual factory, team alignment,
Kaizen, problem solving, etc.) make a statistically material impact on the baseline OEEs. This should encourage plants that
are earlier in their maturity curve to accelerate their CI efforts and for more advanced plants to double down on systematizing
a continuous improvement culture.

12 2021 Productivity Benchmark Report – Fourth Biennial 13

 04 BENCHMARK RESULTS (CONT’D)

4.2.2 Variance Between Reported and Actual OEE Fig 10: Reported Average OEE vs. Actual Fig 12: Detailed and Average OEE Uplift Across 300 Plants
Having conducted over a 1000 benchmarking exercises,
it was commonly observed that plants tend to overstate
their reported OEE when relying on manual systems.
Given that this over-reporting represents hidden cost
Plant OEE Increase Avg. OEE Increase
saving or capacity opportunities, this fourth edition of the
report assessed precisely how much plants tend to over
report. Fig 10 shows that the 300 plants represented by
the data in this report overstated their baseline OEE by
11 percentage points on average. This is significant as for

Baseline OEE
an average size F&B or CPG plant; this represents over
$1M of hidden opportunity. The most common reasons
found for the discrepancy were:
1. Over allocation of planned downtime
2. Understating theoretical maxes
3. Insufficient accounting of quality losses

OEE

OEE
Avg Stated OEE Avg Automated
Baseline OEE Baseline

4.3 OEE Uplift and Productivity Improvement

An OEE uplift is measured as the difference between the baseline OEE and the 90-Day OEE on focus lines. Across the
sample of 300 plants the average uplift in OEE was 12 percentage points with the distribution illustrated in Fig 11 below:

Number of Days Number of Days

Fig 11: % Points of OEE Uplift Distribution Across 300 Plants

As the data was further dissected, four logical groupings of plants emerged that showed statistically similar OEE uplifts and
productivity increases. Although all plants showed significant improvement, the two characteristics that correlate most with
the OEE uplift were CI maturity and baseline OEE.
Number of Plants

OEE Uplift
14 2021 Productivity Benchmark Report – Fourth Biennial 15
 04 BENCHMARK RESULTS (CONT’D)

The regression analysis below show the strength of the relationship of the two variables with the strongest correlation to a Given this observation, the charts below show the OEE uplift and productivity improvements for the 300 plants included
plant’s 90-Day OEE uplift: 1) Baseline OEE and 2) the CI Maturity index. In general, Pearson R coefficients less than -0.5 or in this study over the first 90-day period based on these characteristics. Results are presented as a function of the matrix:
greater than +0.5 indicate a strong relation between the input variable and the outcome (OEE uplift in this case).

Fig 13: Regression Analysis Comparing Productivity Increase Fig 14: OEE Uplift for Low Baseline / Low Maturity – Gainers

Baseline OEE vs. OEE Uplift Plant OEE Increase [n = 156] Avg. OEE Increase [n = 156]
OEE Uplift % Points

OEE

OEE
Baseline OEE [n = 300]

CI Maturity vs. OEE Uplift

Number of Days Number of Days

This group showed the greatest level of OEE uplift (13% points) and productivity improvement (33%). With a significant
amount of opportunity coupled with structured improvement methods being introduced for the first time, this group
OEE Uplift % Points

demonstrates how immediate and significant the Redzone approach is. Given this group achieved the highest overall OEE
uplift and productivity improvement they were classified as Gainers. These findings dispel the myth that a plant has to be
ready, or lay foundations, to benefit from this CI approach.

Baseline CI Maturity [n = 300]

16 2021 Productivity Benchmark Report – Fourth Biennial 17

 04 BENCHMARK RESULTS (CONT’D)

Fig 15: OEE Uplift for Low Baseline / High Maturity – Changers Fig 17: OEE Uplift for High Baseline / High Maturity – Sustainers

Plant OEE Increase [n = 62] Avg. OEE Increase [n = 62]

Plant OEE Increase [n = 37] Avg. OEE Increase [n = 37]
OEE

OEE

OEE

OEE
Number of Days Number of Days
Number of Days Number of Days

A smaller subset of the study population are those plants with advanced CI maturity, yet relatively low OEE starting points.
Termed Changers due to the need to refocus CI efforts in order to get better value from their efforts, the uplifts in both Many plants already experience a best-in-class combination of factors: high starting OEEs enabled by existing advanced CI
OEE (12% points) and Productivity (22%) remain significant for these companies as the approach allows for the shifting of programs. These Sustainers are generally very large and advanced plants with a large pool of technical resources and CI
resources to true problem solving rather than the day-to-day maintenance of existing CI efforts that are not moving the expertise. In many cases these high performing plants had started to plateau in terms of productivity improvements and
needle fast enough. The relatively low OEE is most commonly the result of high changeover, short run business models. were looking for the stimulus to drive OEEs from the mid 70s into the 80s and then lock in those gains. Considering the high
While the business model does not change, changeover times are improved and agility increased as a result of the Redzone starting baselines, the gains were still significant following the Redzone approach. Additionally, they delivered outsized savings
approach and the CI efforts are more focused and action orientated directly leveraging the frontline teams to enhance the and return on investment as the improvements made would not only be prohibitively costly and time intensive to achieve via
value from these efforts. traditional methods; but deliver more in real dollars due to the size, scope, and volumes of product these plants produce.
In summary, all 300 plants experienced OEE uplifts averaging approximately 12% points and an associated 22% productivity
Fig 16: OEE Uplift for High Baseline / Low Maturity – Accelerators improvement across the sample with the categorical averages for each category represented in the following results matrix:

Plant OEE Increase [n = 45] Avg. OEE Increase [n = 45]

Baseline 90-Day
Category OEE Uplift Productivity
OEE OEE

All 300 Plants 54% 66% 12% 22%

Gainers: Low Baseline OEE / Low Maturity 40% 53% 13% 33%
OEE
OEE

Accelerators: High Baseline OEE / Low Maturity 63% 73% 10% 16%

Changers: Low Baseline OEE / High Maturity 54% 66% 12% 22%

Sustainers: High Baseline OEE / High Maturity 75% 83% 8% 11%

Number of Days Number of Days

Alternatively, the Accelerators are the population of plants demonstrating relatively high baseline OEE performance without
comprehensive CI programs in place who are typically looking to accelerate these relatively high baselines. In general, these
operations produce a lower number of SKUs, resulting in fewer changeovers between product formats and are viewed
as relatively straight forward manufacturing processes. OEE uplifts (10%) and productivity improvements (16%) remain
significant as CI efforts focus on eliminating minor stoppages, running optimal rates, and creating a fast responding, problem
solving culture.

18 2021 Productivity Benchmark Report – Fourth Biennial 19

 04 BENCHMARK RESULTS (CONT’D)

The findings are the basis for modeling a plant’s specific opportunity. The model consistently and accurately predicts the Fig 19: Average OEE Point Uplift Over the First Year with Redzone
OEE uplift that a company can expect to achieve when adopting the technology and behaviors instilled during a Redzone
90-Day Productivity Coaching Program. The model is summarized in the matrix below.
One Year Sustainability [n = 187]

Fig 18: Initial 90-Day Benchmark Results Matrix

83%
MODERATE – HIGH

73% 11%
8PTS Productivity

OEE Uplift
16%
10PTS Productivity

63% 75%
Baseline OEE

AVERAGE

22% Productivity

12PTS OEE
Days After Launch
LOW – MODERATE

Regardless of the variability of the included manufacturers, the data shows that all plants make dramatic gains in the
66%
53% first three months following go-live of the initial Productivity module (see Appendix 7.4, What is the Redzone Connected
12PTS 22%
Productivity Workforce Solution? for product details) and continue with a steady increase over the course of their first year.
13PTS 33%
Productivity
4.4.2 OEE Increase Over Three Years
40% 54% A common request from readers of this report is for sustainability data over a number of years. To analyze the results over
a three-year period, a subset of the plants including those who launched in early 2018 (48) were analyzed. Fig 20 below
includes a 1000-day trend of productivity. This subset improved OEE by approximately 12 percentage points over the first
90 days, followed by a similar 3-point uplift over the remaining first year. The trendline for the next two years continues to
FOUNDATIONAL ELEMENTS COMPREHENSIVE & MATURE increase by 3–4 percentage points of OEE per year, showing an average point improvement of approximately 22 percentage
points of OEE over 3 years. This represents a transformational productivity gain of approximately 41%.
Continuous Improvement Maturity

BASELINE OEE PTs OEE UPLIFT XX% 90–DAY OEE Fig 20: Average Points of OEE Increase in the First Three Years Using Redzone

Three Year Sustainability [n = 48]

4.4 Sustainability
As anyone that has been involved in a change management or improvement project will attest, getting an improvement in
short-term performance is only half the battle. Making sure short-term gains are sustained and that everyone does not revert
to their old ways of doing things is the real test.

4.4.1 OEE Increase Over One Year

OEE Uplift
The previous three reports have demonstrated not only that Redzone Community members sustain the gains made over the
first 90 days; but continue to make additional gains in OEE over the first year and beyond. This most recent cohort continues
that trend and although the gains over the first 90 days have increased (as above) the results continue to grow over the 1st year.
The chart below shows a subset of the 300 plants that have been live for over one year (187 plants) and the uplifts they
achieved upon completion of the 90-Day Program. The average OEE continued to incrementally improve by 3 percentage
points throughout the first year as illustrated in Fig 19 opposite, giving a 1st year average OEE uplift of 15% points or 28%
productivity improvement.

Days After Launch

20 2021 Productivity Benchmark Report – Fourth Biennial 21
 04 BENCHMARK RESULTS (CONT’D)

4.5 Annualized Savings Fig 21: Initial 90-Day Benchmark Results Matrix With Savings Estimates Included
These OEE uplifts are converted to illustrated cost savings to highlight the typical business impact. The degree of cost saving
is a factor of both the OEE uplift and the existing labor and overhead cost structure. Larger, higher revenue plants have
higher labor and overhead costs vs. smaller plants. The table below shows the typical costs savings per 1 percentage point of
83%

MODERATE – HIGH
OEE uplift for plants of different revenues. A definition of the calculation for impact of 1% OEE is included in the Appendix. 73% 11%
16% 8PTS Productivity
10PTS Productivity

63% $880,410 75% $1,756,360

Savings
Labor Opportunity Overhead Opportunity Total Savings Opportunity Savings
Plant Revenue
(per 1% OEE) (per 1% OEE) (per 1% OEE)

Baseline OEE
All Plants $61,334 $17,179 $78,513

AVERAGE
22% Productivity
$10M - $40M $34,312 $9,865 $44,177
12PTS OEE
$40M - $100M $71,837 $16,204 $88,041

LOW – MODERATE
$100M - $250M $94,247 $23,477 $117,724 66%
53%
12PTS 22%
Productivity
$250M - $500M $168,327 $51,218 $219,545 13PTS 33%
Productivity

40% $574,301 54% $1,412,688

Savings
Savings

4.5.1 Illustration of Savings

In order to illustrate likely savings, the revenue of each plant was cross-referenced against the four categories that were FOUNDATIONAL ELEMENTS COMPREHENSIVE & MATURE
described earlier. Although this is a generalization, there was a correlation between the category of plant and the most likely
revenue band: Continuous Improvement Maturity
• Gainers (low-low) were most likely to be $10M - $40M range, meaning the value of 1% point was $44,177
• Accelerators (high-low) were most likely to be in the $40M - $100M range, meaning the value of 1% point was $88,041 BASELINE OEE PTs OEE UPLIFT XX% 90–DAY OEE
• Changers (low–high) were most likely to be in the $100M - $250M range, meaning the value of 1% point was $117,724
• Sustainers (high-high) were most likely to be in the $250M and above range, meaning the value of 1% point was $219,545
Using these generalizations enables an illustrated likely savings depending on a plant’s maturity and baseline. This is
calculated purely from labor and overhead savings generated by OEE increases. They do not take into account the savings
4.5.2 Intangible Benefits
Many intangible benefits were reported such as increased frontline worker retention and engagement as well as improved
from reduced overtime, the value of scrap reduced or targeted Kaizen problem-solving activities.
flexibility and agility. The ability for frontline workers to move from line to line and be able to quickly operate new lines
Bringing all of these benchmark results together in Fig 21 opposite, shows that it is possible to consistently deliver rapid, and equipment was highly visible during the pandemic of 2020 when frontline workers needed to rely on innovation and
measurable gains across the F&B and CPG industries, regardless of process type, size, product mix, CI maturity or starting creativity to just maintain their productivity. In spite of the new challenges, many community members reported record
OEE. This demonstrates true continuous improvement as an outcome, and not just a philosophy or methodology. output and productivity during their pandemic responses.
It is worthy of note that the most recent cohort shows a step-change improvement from the previous cohort with the average 4.5.3 Cultural Transformation
OEE uplift increasing from 7.8 percentage points (13.3% productivity increase) to 12 percentage points (22% productivity Perhaps the most impactful—but immeasurable—outcome has been the cultural phenomenon that resulted from improved
increase). This step-change can be directly attributable to changes made in both the technology and coaching methods as communication across the plants considered in this study. Surely, improved communication contributes directly to OEE
a result of the vast experience the Redzone teams now have in deploying these enablers. This result is even more impressive improvement, but the impact of everyone-to-everyone communication—giving everyone a voice—stimulated a cultural
in light of the new challenges the industry faced from March 2020 when COVID-19 first arrived. transformation of frontline teams creating their own culture of shop floor ownership and improvement. Anecdotally, plants
enjoy lower staff turnover, lower absenteeism and higher engagement; which is often reflected in staff surveys as a result.

22 2021 Productivity Benchmark Report – Fourth Biennial 23

 05 WHAT DID THE MOST SUCCESSFUL PLANTS DO DIFFERENTLY?

In addition to the results included previously, this report examines the traits most commonly observed by Redzone Community 5.2.1 Plant-wide Communications, Recognition and Celebration
members achieving the highest results. These in-field observations support our own beliefs around CI methodology. The The leading plants were found to have more open and frequent dialogue with the shop floor and had made significantly
outcomes from these findings have rolled directly into the product definition and development process resulting in continuous greater use of the social and unstructured communications capabilities in Redzone. These plants were significantly more
improvement by way of enhancements delivered year-over-year to community members. frequent users of Redzone chats, issues and alerts to enable peer-to-peer problem solving and on-the-spot decision making.
They had also published standard work instructions on how to use the data to make decisions.

Fig 22: Productivity Uplift Pareto Across the 700 Plant Community In addition, it was found that the leading plants had taken the time to establish realistic but challenging hourly performance
targets and daily goals, which had been widely communicated on dashboards, leaderboards and line-side iPads.
Leadership teams in the most improved plants created highly visible mechanisms to monitor and share progress to promote
the most productive activities. Rewarded behavior is repeated behavior, so higher performing plants had higher degrees of
recognition such as using high fives and good catches sent from the Redzone app to catch people doing the right things.
More formal Reward & Recognition programs were recognized in higher performing plants such as incentivizing higher
performance with monetary or otherwise valuable rewards. Finally, higher performing plants held more town halls to publicly
recognize individuals, teams, and overall company performance.
Productivity Increase

5.2.2 Practice
The most subtle, yet overwhelmingly consistent characteristic of the leading plants was their attention to repetition and
practice. It is well understood that people learn by doing, and need to go through the steps of observing, practicing and
mastering new skills in order to implement new behaviors. This is fundamental to the Redzone Way.
5.2.3 Stayed on the Redzone Journey
This report focuses on the results obtained across the Redzone Community during their first 90-Day Program. It was,
however, a common observation of plants that continued on the Redzone journey, deploying additional capabilities such
as Compliance and Reliability, achieved further leaps in performance beyond the incremental improvements of plants that
only implemented Productivity modules. Additional step-change uplifts are accessible with the addition of the Compliance
and Reliability modules including their associated 90-Day Coaching Programs. See Fig 23 below that shows the incremental
results experienced by the plants that continued on the Redzone journey.

From a deeper analysis of these companies, the following five elements have been established to have been the most
significant contributing factors to their success: Fig 23: OEE Uplifts Available from Continuing the Redzone Journey

5.1 Leadership Team Participation

Senior leadership team (SLT) participation and focus is probably the most important element of any business process change
exercise. This does not necessarily imply the allocation of large amounts of their time, but rather a focused application of
time on things that have a high impact. Leading plants were found to have SLTs that were highly engaged both with their
immediate reports and with frontline workers, both in structured and unstructured interactions. Managers were found to be
a common presence on the shop floor engaging with people, listening to their thoughts and issues and giving feedback and
encouragement. The SLT also maintained a clear and consistent dialogue regarding company priorities and direction that
included broadcast video communications and regular town halls including workers, not just management.
The impact of this was to create well informed workers who had trust in the leadership and felt recognized for their effort and

OEE Uplift
achievements, as well as their collective performance. This was especially felt during the uncertainty of the 2020 pandemic
when regular communication was required to keep everyone up with the regularly changing requirements and restrictions.
Leaders providing visibility of their actions to everyone on a regular basis was reported as having a big impact on reducing
frontline employees’ fears.

5.2 Rigorous Forum Discipline

The leading plants all maintained exceptional discipline around structured forums, both at an operational and a leader level.
Different plants adopted different forums for specific purposes, but three critical forums were similar across all plants:
1. Shop floor huddles on each line at pre-determined points during the shift involving representatives from each of the
Production, Maintenance and Quality teams.
2. Daily operations meetings involving Production, Maintenance and Quality management
3. Weekly improvement review meetings which involved the senior operations leaders and members of wider management team.
More importantly, it was understood that these forums were the primary vehicle to recognize top performers, raise and
escalate issues that are interfering with Winning the Day and follow up on ideas and actions to correct mistakes. It was also
observed that a majority held their daily operational meeting out on the floor, in front of a big screen displaying Redzone, Day
thereby ensuring everyone was aware they were all looking at the real time performance data, and that actions were being
followed up on.

24 2021 Productivity Benchmark Report – Fourth Biennial 25

 06 CONCLUSIONS

The productivity improvement results shared previously highlight miraculous performance improvements for F&B and CPG Moreover, you can expect valuable intangible improvements such as dramatic enhancements to your shop floor culture (and
manufacturers. For an industry reporting an average baseline OEE of about 54%, the opportunity to improve and deliver beyond) where your workers want to come to work—for you—and commit more to their work when they are there. Although
more with same is dramatic! The average 12% OEE uplift or 22% productivity improvement is compelling for those seeking listed as an intangible, this results in a virtuous circle of improved culture delivering higher worker engagement that results
Productivity Now. in higher performance that continues to energize the culture. Repeat.
The approach to enlist and empower frontline workers though continuous improvement coaching supported by easy to These results defy some preconceived notions that “Frontline workers aren’t able to use modern technology.” They can.
deploy technology and robust social-mobile communication tools is clearly working for this community of 700 plants. The They want to. And they prove it in spades with Redzone. This report is the most comprehensive empirical evidence for
results of these controlled measurements of the finite scope of improvement over 90 days is exciting, and the sustainability productivity performance in the F&B and CPG industries. It is the proof.
is predictable.
We hope this report convinces you to consider your place on the above matrix and decide whether your business could
This report clearly indicates that any F&B or CPG manufacturer—regardless of segment—can enjoy double digit productivity leverage the additional competitiveness and financial returns clearly available to you. The next step is yours.
improvements irrespective of their size. The metrics that impact the magnitude of the result is clearly a function of baseline
OEE and CI maturity, but for all delivered exemplary value and ROI.
Richard Tester
Co-CEO, Redzone
Initial 90–Day Benchmark Results Matrix

83%
MODERATE – HIGH

73% 11%
16% 8PTS Productivity
10PTS Productivity

63% $880,410 75% $1,756,360

Savings
Savings
Baseline OEE

AVERAGE

22% Productivity

12PTS OEE
LOW – MODERATE

66%
53%
12PTS 22%
Productivity
13PTS 33%
Productivity

40% $574,301 54% $1,412,688

Savings
Savings

FOUNDATIONAL ELEMENTS COMPREHENSIVE & MATURE

Continuous Improvement Maturity

BASELINE OEE PTs OEE UPLIFT XX% 90–DAY OEE

The Initial 90-Day Benchmark Results Matrix above illustrates the broad range of opportunities for productivity improvement
across the F&B and CPG manufacturing spectrum. Whether you are a low performing plant who aspires to implement CI or a
highly sophisticated CI environment with already high performing results, you can count on results that will move the needle
on your capacity and/or profitability.

26 2021 Productivity Benchmark Report – Fourth Biennial 27

 07 APPENDIX

7.1 Overall Equipment Effectiveness (OEE) 7.2 Calculating Savings

Manual calculations of OEE use recorded downtime and scrap figures to derive the performance losses from a perfect 100%. The following summarizes the assumptions made to calculate the impact of a 1% improvement in OEE across different
As downtime and scrap are often mis-recorded in manual systems, collecting this data automatically using sensors, as the sizes of facility. The savings are expressed as cost reductions for simplicity and are defined as labor and variable overhead
Redzone Connected Workforce Solution does, is much more accurate. reductions.
Overall Equipment Effectiveness is made up of 3 components: Labor was considered to be direct employees working on the line (costed at an average regular time rate), excluding any
ancillary and in-direct labor such as warehouse, quality, maintenance etc. Variable overhead was taken to be the portion of
Availability (uptime as a percentage of available time): A threshold percentage per minute is set, to define the level at
• 
overhead that would be reduced if the plant ran fewer hours (generally this is utilities and some minor additional overhead).
which a line is considered to be running (uptime) or stopped (downtime) as compared to available time which represents
Average numbers of production lines and numbers of people per line were listed per category, along with an average labor
all time where the production line or cell is scheduled to be running. This includes all changeover times and interruptions
rate per direct employee. From these numbers it was possible to estimate the impact of a 1% uplift in OEE.
to the production floor. It does not include any time where the lines are not scheduled to run (such as non-productive
shifts or non-working weekends).
Performance (actual rate of production while running, as a percentage of theoretical maximum rate): Measured by
•  Estimated Labor Savings for Each 1% OEE Uplift
Redzone every minute that the line is running and compares the actual input quantity of material against the theoretical
maximum rate (safe-running engineering capacity) of production output. This rate differs by SKU so Redzone records Avg Run Avg People Avg Labor Avg Wage Avg OEE Avg Labor Savings
Size of Plant Avg # of
which product is running at all times, to allow comparison with the planned rate stored against each SKU (which can be (Revenue) Lines Hours per Line Hrs/Yr of 1% OEE
additionally broken down to a rate for each line).
All Plants 6 6010 7 214858 $15.42 54% $61,334
Quality (output quantity as a percentage of quantity produced on the line): Redzone records scrap and re-work on the
• 
line, including where the losses occurred (with Reason Codes) to enable the analysis of losses and re-work. <$10M - $50M 3 5000 6 90000 $15.25 40% $34,312
 
$50M - $100M 6 6120 8 293760 $15.41 63% $71,837

$100M - $250M 7 6468 7 316932 $16.06 54% $94,247

The standard calculation for OEE is:
$250M 10 7488 9 673920 $18.73 75% $168,327

OEE% = Availability% x Performance% x Quality%

Similarly, by taking the average number of production hours, the same calculation is used to estimate the reduction in
By way of example, a 95% performance on each of these metrics results in what has been variable overhead associated with a 1% uplift in OEE.
accepted as world class OEE performance of ~85%: .95 x .95 x .95 = 85.7%

Estimated Variable Overhead Savings for Each 1% OEE Uplift

Size of Plant Avg Variable Avg VOH Savings

Avg # of Lines Avg Run Hours Avg OEE
(Revenue) Overhead/Hr of 1% OEE

All Plants 6 6010 $27.81 54% $17,179

<$10M - $50M 3 5000 $26.31 40% $9,865

$50M - $100M 6 6120 $27.80 63% $16,204

$100M - $250M 7 6468 $28.00 54% $23,477

$250M 10 7488 $51.30 75% $51,218

28 2021 Productivity Benchmark Report – Fourth Biennial 29

 07 APPENDIX (CONT’D)

7.3 Industry Segment Definitions Rapid Time to Value

The Redzone Connected Workforce Solution goes live with clean data and full utilization of the system within weeks. Most
Bakery
community members report being live and operational within 2 days of the coach being on site. Compare this to a typical
Bakeries had a median OEE of 52% with a spread from 12% to 81%. It is not surprising that bakeries have high starting
MES or CMMS implementation which may take from 6-18 months to implement and an army to maintain. The Redzone
efficiencies since they typically operate long production runs with few changeovers. Lines also tend to have a dedicated flow coaching team hits the ground running to initiate the shop-floor cultural environment that empowers frontline workers to
and built-in accumulation since proofing, baking and cooling processes must be kept running. make good decisions quickly and facilitate changes to improve performance.
Consumer Packaged Goods / Nutraceutical Implementation Time
This group had a median OEE of 56% with a spread between 23% and 83%. These plants were grouped together since they The Redzone Connected Workforce Solution takes the connected worker concept one step further by automatically
make up a small sub-set of the 250 plants. In general terms, the plants in this group had many similar processes to bottling collecting real-time data about production and waste directly from production lines and making it instantly available to
and traditional food packing plants. frontline workers. It utilizes typical off-the-shelf sensors, Wi-Fi and Edge gateway technology that is already in use in many
production facilities. This allows for a common, repeatable implementation process that is operational in weeks, versus other
Dairy, Juices and Beverages technologies that require time-consuming and disruptive custom implementation.
This group had a median OEE of 54% with a spread between 31% to 95%. As expected, the dairy, juices and beverage OEE
data is skewed more in the 70s and 80s due to the amount of automation that is available for these plants. However, small Once data streams are established, all data is collected from the sensors and is communicated to the cloud over standard
internet connections. This eliminates the need to purchase and manage servers and the associated IT footprint typical of
to medium sized dairy and juice operations tend to have average to low OEEs as they take on a lot of SKUs and have less
legacy on-premise solutions. User access to the cloud applications and data are facilitated through iOS iPads and iPhones
automation.
over Wi-Fi for the most performant and user-friendly system on the market.
Produce Frontline Communication Platform
This group had a median OEE of 54% with a spread between 22% and 79%. It was found that many of these organizations Redzone is built on a digital communication platform that empowers frontline team members with a collaboration solution
were seasonal and efficiencies were hostage to the quality of raw material coming from the farms. Such processes are labor- that significantly increases plant productivity by creating an environment for teams to instantly react to unplanned issues on
intensive, and improvements were among the most significant. the field of play. The solution delivers the following outcomes supported by the bulleted capability benefits.
• Everyone-to-Everyone Communication - to connect frontline workers with all levels in the plant
Ingredients
• Team-of-Teams Collaboration - to enable Production, Quality and Maintenance teams to quickly work together to resolve issues
The median OEE for Ingredients was right at 50% with a spread between 16% and 70%. These plants include mostly dry • Team Celebration - to recognize good performance for encouragement and pride
blending with a small portion of liquid processing as well. They tend to ship all or a majority of their finished goods in bulk
which means traditional approaches to tracking efficiencies lagged behind actual production. Redzone Productivity Module
Redzone’s Productivity solution significantly increases plant productivity in 90 days by creating the environment for front
Meat, Seafood and Pet Foods line teams to eliminate waste and solve problems impacting the shift’s performance! The solution delivers the following
This group had a median OEE of 52% with a spread between 21% and 82%. It is unsurprising that starting efficiency was outcomes for the Production team as supported by the bulleted capability benefits.
lower mainly due to the heightened regulatory requirements in the processing of meat and seafood. Additionally, these • Visual Factory – so everyone knows if they are winning or losing against targets
plants tended to have several interlinked steps to the process which could cause blocked and starved states upstream or • Problem Solving – to ensure that reported issues get addressed in a timely manner
downstream. • Kaizen – to address larger scope issues that go beyond normal activities

Prepared Foods Redzone Compliance Module

Redzone’s Compliance solution dramatically reduces waste and giveaway through better material utilization by transforming
The median OEE was around 51% with a range between 22% and 81%. The prepared foods group includes a variety of
your Quality Assurance Program from reactive to proactive. The result is improved food safety and quicker, more impactful
processes, many of which are short lines with simple packaging equipment.
audits. The solution delivers the following outcomes for the Quality team as supported by the bulleted capability benefits.
Snack Foods / Confectionery • Paperless Quality – to eliminate the time and errors from manual, paper-based processes
This group had a median OEE of 45% with the largest spread between 18% to 77%. Although in the same category, the plants • Statistical Process Control (SPC) – to monitor and alert when specs trend out of tolerance
within this group had processes that varied greatly and were of significantly different sizes. • Audits and Checklists – to always be audit-ready with data in the database, not on paper
Redzone Reliability Module
Soups, Sauces, Dips and Dressings
Redzone’s Reliability solution significantly reduces unplanned downtime (DT) by engaging operators to become more
This group had a median OEE of 52% with a spread between 18% to 85%. The spread is significant, and it was established that
intimately involved in maintaining equipment and detect issues early so the Maintenance team can focus on preventative
the biggest variable was changeovers; those plants producing branded products with longer runs had higher OEE scores maintenance (PM). The solution delivers the following outcomes for the Maintenance team, as supported by the bulleted
than those in private label or food service with more short runs. capability benefits.
• Operator Care – to off-load mundane clean, inspect, and lubrication tasks to operators
7.4 What is the Redzone Connected Workforce Solution? • Operator Sense – to extend the visibility of maintenance with operators’ eyes, ears, and noses
• Work Orders and PMs – to prioritize maintenance activities that will increase uptime
The Redzone Connected Workforce Solution defines a new category of solution for F&B and CPG manufacturers. Redzone
• Breakdowns – to reduce lost time and product when an unplanned breakdown does occur
Community members achieve success and sustainability of their productivity uplifts by using Redzone as a platform to
enhance their culture and to support their own CI strategies where such strategies exist and get them started where they do Coaching
not. Unlike other plant floor technologies, the focus is on enabling and engaging frontline workers as a productivity engine. Redzone solutions are different in that coaching is a fundamental component of the whole. Technology on its own changes
nothing without ensuring that users’ behavior is updated to take advantage of the software capabilities. Companies
The Redzone approach, referred to as The Redzone Way is a unique combination of social/mobile technology creating a experience sustained results when they incorporate new skills in a way that enables teams to systematically improve their
digital production system with a highly immersive coaching program to drive behavior change to make the uplifts stick. own performance. The Redzone 90-Day Program includes:
Dashboards, Leaderboards, Actions, Issues, Alerts, Chats, Logs, Blogs come out-of-the-box providing summarized content • A short preparation phase to get you and your environment ready for improvement
for structured Meetings and Forums, all contribute to create a powerful communication and collaboration platform for • Development of an agreed-upon success plan that is attainable and relevant
monitoring, documenting, reporting, analyzing and driving results. They create an action-oriented environment where • A Win the Day phase to align your teams on activities that deliver immediate improvement
frontline workers are armed with the tools and support they need to make decisive and timely decisions at the point of • Problem Solving phase to implement skills that address the top recurring issues
• Celebration for the whole company to reward your teams for their successes
activity—on the shop floor.
30 2021 Productivity Benchmark Report – Fourth Biennial 31
Miami, FL (HQ) +1 305 908 4479
Denver, CO +1 720 223 6179
Birmingham, UK +44 121 740 0777

www.rzsoftware.com