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Friday, 26 August 2022 10:04

Aussie craft brewers ramp production by 7.6% but bogged by downtime: OFS report

By
OFS CEO James Magee OFS CEO James Magee

While craft brewers increased production by 7.6% compared with the past three months, the industry average for actual production time while lines are available remains just 45%, according to manufacturing performance software company OFS’ Craft Brewers Benchmark Report.

The report analysed the production of millions of litres of beer by primarily Australian, New Zealand, and US craft breweries between April and June this year to determine a view of ‘what good looks like’.

It includes key performance benchmark data and explains why knowing overall equipment effectiveness (OEE) can make a significant impact on a brewer’s bottom line.

“This is an industry that’s thriving while leaving so much potential on the table,” said OFS CEO James Magee.

“That luxury can’t last forever – we need a mindset shift in how the industry collects and leverages data to improve productivity.”

Craft brewers scored well for waste efficiency despite the challenges.

Only 2% of beer produced didn’t end up in cans or battles marking an improvement of 28% compared with the previous three months.

Other key statistics from the report include:

  • On average, 6,517 units of craft beer were produced per hour, 74.2% behind the potential output of 11,353 per hour.
  • It took brewers an average of 63 minutes to setup a job, an increase of four minutes compared with the previous three months.
  • Unplanned downtime accounted for 25.46% of production time, in line with the previous three months.
  • The industry earned an average OEE score – considered the gold standard for measuring productivity – of 44%, a slight increase from 43%.

Magee says visibility is key to further improving efficiency, as when craft brewers can see an opportunity in front of them, they don’t miss it.

“It’s telling that craft brewers manage product waste so well – they barely leave a drop behind,” he said.

“Wasted time, however, is harder to view without the right tools in place, and it’s too easy to generalise and make assumptions about output, downtime, and changeovers when you’re relying on a busy crew updating an excel sheet or piece of paper.”

“What we’re hoping to do with these industry snapshots is show the efficiency potential that’s there when craft brewers surface these insights. It isn’t rocket science, it is literally just an accurate real-time view of what’s happening on the line, and too few have it,” he concluded.

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Kenn Anthony Mendoza

Kenn Anthony Mendoza is the newest member of the iTWire team. Kenn is also a contributing writer for South China Morning Post Style, and has written stories on Korean entertainment, Asian and European royalty, Millionaires and Billionaires, and LGBTQIA+ issues. He has been published in Philippine newspapers, magazines, and online sites: Tatler PhilippinesManila BulletinCNN Philippines LifePhilippine StarManila Times, and The Daily Tribune. Kenn now covers all aspects of technology news for iTWire.com.

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