Baking&Snack - February 2012 - 43

INDUSTRY INSIGHT Jim Kline
jkline@theensolgroup.com

Managing Valued Assets
Managers can develop a new tool to help make capital expenditure decisions easier.
With maintenance and operations managers pulled in so many directions, they can find it difficult to remain focused on the bigger picture. How often have you attempted to justify a replacement need only to find the approval process protracted and difficult? Granted, money is tight, and spending must be carefully guarded, but as the maintenance manager, plant engineer or plant manager, you are charged “lot line to lot line” with balancing the best interests of the company with the financial responsibility for the assets you control.

W

Developing the plan
Establishing an asset management program using valued asset management can provide an overview of the bakery and expedite the planning and approval process. Valued asset management is the development and use of a comprehensive asset summary for the facility, process equipment and systems beyond traditional costbased accounting systems. It is a tool that encompasses each asset’s original cost, capital improvements and depreciated value. It also accounts for expected asset life;

operational efficiency; cost of maintaining the asset, including routine and unplanned maintenance; cost of operation; and impact on operations and any labor requirements to operate the equipment. At first glance, this tool may not seem new or revolutionary, and many of you might be saying to yourselves, “We have that.” Really? I expect many of you have pieces of this program, and that is great because you are well on your way. But how many of you have it assembled as a comprehensive database that senior management recognizes as the seminal and accepted body of information to be used for planning and decision-making purposes? Think of it much like the work done to develop an annual budget. Initially, you need to gather supporting information. Next, you need to go through a review process and, finally, reach agreement. You need to evaluate, manage and track facility and process assets as you do your departmental budget. You should develop a plan on a cost basis, establish expected performance criteria tracked against it and create a continuous improvement program that includes asset improvement and investment decisions.

Getting into details
Information contained in program databases must be current to be usable, and for those companies with an integrated enterprise resource planning (ERP) system, the information can be updated in real time. All in all, valued asset management offers a comprehensive look at your facility and process and helps provide answers to questions such as: What drives costs? Where can investments be made to reduce costs? What is the value of an investment? A valued asset management program answers all of these questions. The available information can assist decisionmakers as they strategically plan capital expenditures as well as provide a tool to evaluate unexpected expenditures as they arise. Once you have compiled a valued asset management plan, present it to the stakeholders — such as the senior managers and the principals of the business — for review and buy-in. Once these stakeholders have bought into the dataset, you can use it for planning purposes to establish an annual budget, develop a 5-year plan and evaluate the merits of unplanned expenditures. Because you have an agreed-on baseline, management can now evaluate the alternative impacts associated with the available options, whether it be rebuilding, overhauling, replacing or remaining as-is. Here are questions you may want to ask: Will it reduce utility use, and if so, by how much? Will headcount change? Is line efficiency improved? Developing a valued asset management program takes some initial work, but consider the benefits and the time it will save later. It will provide you and management the tool to make confident investment decisions.

Determining spending needs

Assembling and maintaining the information required by valued asset management provides the ability to answer questions key to operational success, such as: • What utility hogs can be trimmed to reduce the facility’s carbon footprint and improve the bottom line? • What equipment requires the greatest time to maintain? • Which equipment has the greatest cost for replacement parts? • What equipment requires the greatest sanitation time to meet GMPs and HACCP requirements? • Which operations require the most labor? • Where does the facility’s planned downtime come from? • Where is unplanned downtime coming from?

•

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Baking&Snack - February 2012

Table of Contents for the Digital Edition of Baking&Snack - February 2012

Baking&Snack - February 2012
Table of Contents
Table of Contents
Editorial - Fresh start to 2012
Newsfront - Canada Bread sets ambitious goals in 2012
Newsfront - Hostess Brands files for bankruptcy again
In Brief
News - ASB selects four to 2012 Hall of Fame
News - Kraft to reduce workforce as part of realignment
News - GMA director to lead new food safety alliance
In Brief
News - Whole Grains Summit aims at whole world
News - FTRAC convenes with ARS in Boston
In Brief
Correction and Clarification
People
In Memoriam
Right on Track
Back on Track
Industry Insight - Managing Valued Assets
Going Lean, Cutting Waste
Breakfast Trends - Keeping Breakfast in Balance
Botanicals - Extracts with Benefits
Probiotics - Working with Probiotics
Ingredient App - Vanilla Upgraded
Regulatory Q&A - Better Safe than Sorry
Oven Technology - Ability with Agility
Pan Management - Automating Pan Handling
In Recovery Mode
From Pan to Hearth
Food Safety Q&A
ABA FTRAC Q&A
Course Preview - Getting Ahead of the Learning Curve
Events
Innovations
Ingredient News
Products & Packaging
Patents
New on the Shelf
Marketplace
Ad Index
New Product Spotlight - Superfruits to the Rescue
Baking&Snack - February 2012 - Baking&Snack - February 2012
Baking&Snack - February 2012 - 2
Baking&Snack - February 2012 - 3
Baking&Snack - February 2012 - 4
Baking&Snack - February 2012 - 5
Baking&Snack - February 2012 - 6
Baking&Snack - February 2012 - 7
Baking&Snack - February 2012 - 8
Baking&Snack - February 2012 - Table of Contents
Baking&Snack - February 2012 - 10
Baking&Snack - February 2012 - Table of Contents
Baking&Snack - February 2012 - Editorial - Fresh start to 2012
Baking&Snack - February 2012 - 13
Baking&Snack - February 2012 - 14
Baking&Snack - February 2012 - 15
Baking&Snack - February 2012 - Newsfront - Canada Bread sets ambitious goals in 2012
Baking&Snack - February 2012 - In Brief
Baking&Snack - February 2012 - News - ASB selects four to 2012 Hall of Fame
Baking&Snack - February 2012 - 19
Baking&Snack - February 2012 - In Brief
Baking&Snack - February 2012 - 21
Baking&Snack - February 2012 - Correction and Clarification
Baking&Snack - February 2012 - In Memoriam
Baking&Snack - February 2012 - Right on Track
Baking&Snack - February 2012 - 25
Baking&Snack - February 2012 - 26
Baking&Snack - February 2012 - 27
Baking&Snack - February 2012 - 28
Baking&Snack - February 2012 - 29
Baking&Snack - February 2012 - 30
Baking&Snack - February 2012 - 31
Baking&Snack - February 2012 - 32
Baking&Snack - February 2012 - 33
Baking&Snack - February 2012 - Back on Track
Baking&Snack - February 2012 - 35
Baking&Snack - February 2012 - 36
Baking&Snack - February 2012 - 37
Baking&Snack - February 2012 - 38
Baking&Snack - February 2012 - 39
Baking&Snack - February 2012 - 40
Baking&Snack - February 2012 - 41
Baking&Snack - February 2012 - 42
Baking&Snack - February 2012 - Industry Insight - Managing Valued Assets
Baking&Snack - February 2012 - Going Lean, Cutting Waste
Baking&Snack - February 2012 - 45
Baking&Snack - February 2012 - 46
Baking&Snack - February 2012 - 47
Baking&Snack - February 2012 - 48
Baking&Snack - February 2012 - 49
Baking&Snack - February 2012 - 50
Baking&Snack - February 2012 - 51
Baking&Snack - February 2012 - 52
Baking&Snack - February 2012 - 53
Baking&Snack - February 2012 - 54
Baking&Snack - February 2012 - Breakfast Trends - Keeping Breakfast in Balance
Baking&Snack - February 2012 - 56
Baking&Snack - February 2012 - 57
Baking&Snack - February 2012 - 58
Baking&Snack - February 2012 - 59
Baking&Snack - February 2012 - 60
Baking&Snack - February 2012 - 61
Baking&Snack - February 2012 - 62
Baking&Snack - February 2012 - 63
Baking&Snack - February 2012 - 64
Baking&Snack - February 2012 - Botanicals - Extracts with Benefits
Baking&Snack - February 2012 - 66
Baking&Snack - February 2012 - 67
Baking&Snack - February 2012 - 68
Baking&Snack - February 2012 - 69
Baking&Snack - February 2012 - 70
Baking&Snack - February 2012 - Probiotics - Working with Probiotics
Baking&Snack - February 2012 - 72
Baking&Snack - February 2012 - 73
Baking&Snack - February 2012 - 74
Baking&Snack - February 2012 - 75
Baking&Snack - February 2012 - 76
Baking&Snack - February 2012 - 77
Baking&Snack - February 2012 - 78
Baking&Snack - February 2012 - 79
Baking&Snack - February 2012 - Ingredient App - Vanilla Upgraded
Baking&Snack - February 2012 - 81
Baking&Snack - February 2012 - 82
Baking&Snack - February 2012 - Regulatory Q&A - Better Safe than Sorry
Baking&Snack - February 2012 - 84
Baking&Snack - February 2012 - 85
Baking&Snack - February 2012 - 86
Baking&Snack - February 2012 - Oven Technology - Ability with Agility
Baking&Snack - February 2012 - 88
Baking&Snack - February 2012 - 89
Baking&Snack - February 2012 - 90
Baking&Snack - February 2012 - 91
Baking&Snack - February 2012 - 92
Baking&Snack - February 2012 - 93
Baking&Snack - February 2012 - 94
Baking&Snack - February 2012 - 95
Baking&Snack - February 2012 - 96
Baking&Snack - February 2012 - Pan Management - Automating Pan Handling
Baking&Snack - February 2012 - 98
Baking&Snack - February 2012 - 99
Baking&Snack - February 2012 - 100
Baking&Snack - February 2012 - 101
Baking&Snack - February 2012 - 102
Baking&Snack - February 2012 - 103
Baking&Snack - February 2012 - In Recovery Mode
Baking&Snack - February 2012 - 105
Baking&Snack - February 2012 - 106
Baking&Snack - February 2012 - 107
Baking&Snack - February 2012 - 108
Baking&Snack - February 2012 - 109
Baking&Snack - February 2012 - From Pan to Hearth
Baking&Snack - February 2012 - 111
Baking&Snack - February 2012 - 112
Baking&Snack - February 2012 - Food Safety Q&A
Baking&Snack - February 2012 - 114
Baking&Snack - February 2012 - 115
Baking&Snack - February 2012 - 116
Baking&Snack - February 2012 - ABA FTRAC Q&A
Baking&Snack - February 2012 - 118
Baking&Snack - February 2012 - 119
Baking&Snack - February 2012 - 120
Baking&Snack - February 2012 - Course Preview - Getting Ahead of the Learning Curve
Baking&Snack - February 2012 - 122
Baking&Snack - February 2012 - Events
Baking&Snack - February 2012 - Innovations
Baking&Snack - February 2012 - Ingredient News
Baking&Snack - February 2012 - 126
Baking&Snack - February 2012 - Products & Packaging
Baking&Snack - February 2012 - 128
Baking&Snack - February 2012 - 129
Baking&Snack - February 2012 - 130
Baking&Snack - February 2012 - 131
Baking&Snack - February 2012 - Patents
Baking&Snack - February 2012 - 133
Baking&Snack - February 2012 - 134
Baking&Snack - February 2012 - New on the Shelf
Baking&Snack - February 2012 - 136
Baking&Snack - February 2012 - 137
Baking&Snack - February 2012 - 138
Baking&Snack - February 2012 - Marketplace
Baking&Snack - February 2012 - 140
Baking&Snack - February 2012 - 141
Baking&Snack - February 2012 - 142
Baking&Snack - February 2012 - 143
Baking&Snack - February 2012 - 144
Baking&Snack - February 2012 - Ad Index
Baking&Snack - February 2012 - New Product Spotlight - Superfruits to the Rescue
Baking&Snack - February 2012 - 147
Baking&Snack - February 2012 - 148
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