Beverage Industry logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Beverage Industry logo
  • NEWS
    • R&D News
    • Supplier News
  • PRODUCTS
    • New Products
    • Reader's Choice Poll
  • CATEGORIES
    • Alternative Drinks
    • Beer
    • Bottled Water
    • Cannabis Beverages
    • Carbonated Soft Drinks
    • Energy Drinks & Shots
    • Juice & Juice Drinks
    • Plant-Based Beverages
    • Sports Drinks
    • Tea and Coffee
    • Wine & Spirits
  • R&D
    • Beverage R&D Features
    • Ingredient Spotlight
  • PACKAGING
    • New Packages
    • Packaging Equipment
    • Packaging Material
  • OPERATIONS
    • Distribution
    • Plant Focus
  • TOP LISTS
    • Beer Market Report
    • Executive of the Year
    • State of the Beverage Industry
    • Top 100 Beverage Companies
    • Truck Report
    • Wholesaler of the Year
  • MEDIA
    • eBook
    • Podcast
    • Polls
    • Videos
    • Webinars
  • DIRECTORIES
    • Annual Manual
    • Contract Packaging Guide
    • Take a Tour
  • MORE
    • Classifieds
    • Channel Strategies
    • eNewsletters
    • Events
      • Membrane Technology Forum
    • Interactive Product Spotlights
    • Market Insights
    • Sponsor Insights
    • Store
    • White Papers
  • EMAG
    • eMagazine
    • Archived Issues
    • Advertise
  • SIGN UP!
CommentaryPlant Focus

Operations Perspective

Macro, micro tools determine peak line efficiency, performance

Line efficiency determines return-on-investment

By John Peter Koss
John Peter Koss
March 24, 2021

Beverage production or packaging lines always have demanded some means of measuring how well they are operating. The ability to determine peak line efficiency is prudent and necessary, quite simply, because of dollar and cents.

Regardless of the size of a beverage plant, every facility represents a capital investment that needs to demonstrate whether a positive or negative return is being obtained. Because money is involved, bottlers have devised and used many methods of measuring return-on-investment (ROI).

But, plant managers first should ask themselves the following questions: What exactly do we mean by efficiency? How should “line efficiency” be calculated? What data is necessary and how should it be calculated? Lastly, what is the correct interpretation of the results?

The link between line efficiency and performance

From an operations perspective, the term “line efficiency” usually is used as a measure of “performance;” however, it is a discreet figure that relates to how well a capital investment is being used. Therefore, line efficiency realistically can be referred to as “line utilization” because the physical investment, once in place, is theoretically available 365 days a year.

Yet, because most production facilities don’t operate 24/7, 365 days a year, this makes the first valid point. Warehouse managers should fully understand their plant’s efficiency/utilization by asking themselves —How much of this beverage facility is being utilized?

From an engineering viewpoint, decisions are made regarding how many packaging lines will be required with specific capacity and capability. This also goes hand in hand with marketing and sales projections to determine what products will be manufactured, the quantity of those products and what geographic areas will be handled/supplied by a producing facility. 

Macro and micro approaches

These viewpoints cover the macro approach to capital investment and are crucial to determining overall plant efficiency or utilization ― what percentage of available time is being scheduled for production and what is the cost of idle or downtime?

Within the “big picture” macro approach, micro consideration also must be given due diligence. For example, when are packaging lines to be scheduled and operating? How many shifts are workers needed to fulfill production? What throughput is needed for each line? The list goes on.

Based on marketing forecasts and sales data, production schedules are generated for each line to reflect required packages and volumes. As such, detailed schedules are planned and generated to determine how much time each line is projected to operate. Daily, weekly and even monthly schedules are made to predict line utilization on a periodic basis.

From a practical operating scenario, beverage packaging lines, though scheduled for hours/shifts, usually don’t operate 100 percent of the time. This is where “downtime” enters the equation and the desire to determine how well each line ran — the line’s efficiency or utilization — becomes a top priority. What is the proper calculation for line efficiency and why is it important to beverage operations?

Downtime part of ROI equation

Any time a packaging line is not operating, it’s downtime. Downtime has many categories, but major mechanical issues tops the list, along with packaging material jams, product malfunction and operator lack of attention. Additionally, some manufacturers are confronted with shutting a line down for lunch or breaks. Regardless of the cause of downtime, the line is idle, which is classified as downtime, or non-productive time. 

For this reason, accurate records of all downtime must be manually recorded, or preferably, inputted into a computer software program or spreadsheet, to provide proper efficiency calculation and meaningful results. Leaving any downtime category out of the equation will not adequately evaluate line efficiency or utilization when compared with the available and/or scheduled time of the investment.

Therefore, line efficiency is a significant part of bottling or canning operations — make sure to document and follow the rules to achieve peak ROI.

KEYWORDS: beverage operations beverage processing bottling packaging trends

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

John peter koss beverage industry

John Peter Koss, the beverage operations advisor, has more than 60 years of beverage industry experience, was an operations executive for a Fortune 500 company and can be contacted at bossole2@gmail.com.

Recommended Content

JOIN TODAY
to unlock your recommendations.

Already have an account? Sign In

  • Chocolate, Strawberry, Vanilla shakes

    Classic flavors provide reliable, consistent results for beverage-makers

    Classic flavors of chocolate, vanilla and strawberry...
    Ingredient Spotlight
    By: Chloe Alverson
  • Free Spirits Instant Bar Bundle

    Lifestyle trends drive growth for non-alcohol category

    As lifestyle trends continue to drive growth for the...
    Wine & Spirits
    By: Lauren Sabetta
  • Younger generation displays unique habits when it comes to beverage consumption

    Generation Z shakes things up in beverage

    Experts share that Gen Z is changing the standard on what...
    Beverage News
    By: Chloe Alverson
Subscribe For Free!
  • eNewsletters
  • Online Registration
  • Subscription Customer Service
  • eMagazine Subscription
  • Manage My Preferences

More Videos

Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the Beverage Industry audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of Beverage Industry or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

close
  • Fourpeople toasting with cocktails made with low-sugar ingredients, celebrating healthier drink options.
    Sponsored byCargill

    What’s Hot in Sugar Reduction: Beverages

  • chocolate milk
    Sponsored byCargill

    Sweetening the Future for Dairy and Dairy-Alternative Beverages

  • woman pouring a drink
    Sponsored byFFP

    Building a Beverage System: Meeting Consumer Demand for Precision Wellness

Popular Stories

halfday sodas

Beverage-makers turn to fiber, prebiotics and more to support consumer needs

Anheuser-Busch Brewing Futures

Anheuser-Busch announces $300 million investment in US manufacturing

smoothie

Opportunities abound for relaxation, stress-relief beverages

Vote for your favorite new product

Have your say in what makes it to the top this month!
Vote for your favorite new product and help us celebrate excellence.


VOTE NOW!

Events

April 16, 2025

2025 State of the Industry Series: Alcoholic Beverages

On Demand In Beverage Industry’s annual State of the Industry: The Alcohol Beverage Market, analysts at S&D Insights LLC delve into these trends and how they’re shaping the industry.

View All Submit An Event

Poll

Retail Coffee Segment

What retail coffee segments will fare well into the next year?
View Results Poll Archive

Products

Milk and Dairy Foods Nutrition, Processing and Healthy Aging

Milk and Dairy Foods Nutrition, Processing and Healthy Aging

See More Products

Related Articles

  • John Peter Koss

    Major measurement techniques determine warehouse efficiency, costs

    See More
  • John Peter Koss

    Measuring operations tells story behind bottom line

    See More
  • John Peter Koss

    The how, why of managing beverage production line speeds

    See More

Events

View AllSubmit An Event
  • September 9, 2009

    Food Plant of the Future: Building Realistic Sustainability into Food and Beverage Plants

    AVAILABLE ON DEMAND   Using cost-effective design solutions, food and beverage processing facilities can meet the rigorous performance demands required in a processing and production environment and, at the same time, focus on sustainability. 
  • June 25, 2024

    How to Design and Produce Food and Beverage Packaging for the Circular Economy

    On Demand Join Husky to learn more about the broader implications of the circular economy, as well as how leading brands are leveraging this opportunity to reduce costs, increase design flexibility, and boost product differentiation.
View AllSubmit An Event
×

Elevate your expertise in the beverage marketplace with unparalleled insights and connections.

Join thousands of beverage professionals today. Shouldn’t you know what they know?

JOIN NOW!
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Store
    • Want More
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • eNewsletter
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing