A high proportion of the work we do as a consulting business involves helping people to bring their ideas to fruition. This requires working with them to identify the best technical and commercial approach to achieve a profitable realisation and commercial success from their idea.
Most small and start-up businesses in food and confectionery fall in to one of two categories – a confectioner with a really good idea for a new product but who knows nothing about the practicalities of manufacturing on a commercial scale, or a business entrepreneur who has seen a market opportunity but doesn’t know how to go about developing a product and the process to realise the opportunity. There are other cases of course – for example companies who need to change the way in which or the location where they make a product and even companies outside the industry who have manufacturing problems they believe our technologies can solve.
Bringing a product to market successfully from either main “direction” and making a profit from the operation requires a disciplined approach and an understanding of manufacturing technologies and the realities of operations, something few small businesses have. Because of our breadth of experience and knowledge we are able to to challenge clients on the completeness of their plans, we may not know all the answers in some areas, but we do know most of the questions and have a network of associates who will be able to help in almost every area.
There is no point in a good product or idea which cannot be made and delivered to market profitably, however good that idea or marketing concept may be. Business is about creating value and if a product or concept does not do so then either it or the company is doomed to fail. A “good idea” is not nearly enough
Neither is there any point in so degrading a product to fit an existing manufacturing process or cost point that it fails to give the consumer the excitement and satisfaction essential for success. The delivery has to force its way into a crowded, competitive and generally conservative market through its unique properties.
With the “Wonderful Idea” approach, the first thing we do is to work with the originator to fully understand their background and resources, the product, how it has been made originally (frequently by hand) and its key ingredients. We usually then have to make a quick judgement as to whether the product can be made industrially with a reasonable level of investment and what particular issues there may be. Assuming there are no real impracticalities (mere “difficulties” don’t generally worry us much at this stage) then we can start to sketch out a preliminary process and identify the manufacturing steps and technologies involved. If there are major conceptual or technical issues we will work with the client to resolve them if at all possible, but if something “simply won’t work” it is better to acknowledge that at an early stage rather than pursuing a mirage
Based on this initial evaluation we then consider ingredients and recipes, product diversity, scale of operation, facilities needed and potential capital and operating costs and a number of other issues. It is important to make these evaluations at an early stage in order to identify elements which are disproportionately expensive or potentially technically challenging so that particular attention can be focussed on them. For example one product we worked on relied heavily for its presentation on the exact dimensions of a component made from wood in China. At an early stage it became clear that this was unsustainable and we had to modify the presentation of the product to make it a practical proposition
A broad approach integrating engineering, marketing and product development is essential so that compromises can be discussed and developments and opportunities evaluated to give the best commercial solution. Often market research during the development phase will bring subtle (and sometimes not so subtle) changes to the product which may have a major influence on manufacture; equally some parts of the manufacturing process may potentially be changed to reduce cost and complexity without affecting the consumer’s experience of the product. Sometimes this will require several iterations to come to a generally acceptable solution and it is important that all interests have a clear voice and an understanding of the issues.
At this stage in the project how and where to manufacture the product becomes a serious issue. Starting a new factory with untrained staff is a huge extra challenge and can add massively to costs and timing. It is also an extremely risky enterprise where the product (or the process) is new and untried. Third party manufacturing can be a good solution as it allows the manufacturing process to be understood more fully before major investment, but the agreements need to be carefully worded so that unforeseen problems do not occur to either party’s disadvantage in the long run. Pilot scale manufacturing in “one corner” of an existing plant can be attractive but it risks failing to supply the market if the product is successful and consequently allowing a large competitor to launch a competing product. All the possibilities need to be carefully weighed and an ideal and a backup solution explored in some detail.
Once a basic manufacturing process and scale of operation are settled tests have to be carried out to prove the various stages of operation and to confirm that “industrialising” the process has not eliminated all or many of the product’s desirable characteristics. These tests may also throw up opportunities Often equipment manufacturers can offer very useful suggestions as they understand their equipment and its potential fully and often have wide experience. Of course they will not (or at least should not) disclose details of work they have done for other clients, but they will generally have broad and useful experience.
Although often ignored, it is important to consider how scrap and unsatisfactory product will be disposed of within the process and recipes. Very few processes produce 100% perfect product, particularly during commissioning, start up and shut down and without proper consideration this can lead to major losses of ingredients and disposal costs. Process effluent is also a factor often forgotten. This often arises from washing and cleaning the plant and process and may require measurement and pre-treatment before it can be disposed of to sewer.
Process tests can be used to produce prototypes for packaging trials and for tests on the shelf life of products as confectionery products generally have minimal protection and “variable” storage conditions to cope with. I vividly remember one project having to go on hold because the MD decided it had to be able to survive a week in someone’s trouser pocket!
Assuming no major problems have arisen and that the product is still more or less the same, a detailed process can be designed and proper figures for capital, revenue and potential operating costs and timing can be established. It is extremely important at this stage to ensure that the design of the process is inherently stable and does not require sophisticated control or operational procedures. All this information is used to confirm (or otherwise) the basic technical and financial viability of the project or to highlight those issues which may be affecting it adversely. This will not be to the same level as a proper financial evaluation by a specialist, including discounted cash flow and depreciation calculations etc., but if it does not pass this basic test then it certainly needs re-evaluation
It is important to consider issues such as personnel, training, technical facilities and support, QC procedures, ingredient and materials sourcing, effluent costs, etc., because there may be significant issues which might affect the whole project – for example successfully starting a new manufacturing operation may be heavily reliant on recruiting trained staff or managers with experience of the industry.
Often the “perfect” process is simply too expensive and lots of creative thought and sometimes compromise is needed to produce a project with a decent financial case. Indeed an important part of the role of a consultant must be to offer alternatives and creative thinking. It is easy to propose a safe, expensive, inflexible solution, what takes talent is formulating a proposal which radically reduces manufacturing cost, increase flexibility and minimises lead time and skills requirements.
Although every effort has to be made to maximise opportunity, it is important to avoid being pushed into costs and/or timings which are unrealistic. Whilst no-one wants to miss an opportunity due to excessively “comfortable” costs and timings, neither does it help to go forward on the basis of unrealistic figures which cannot be met. This is an issue where consultants can be extremely valuable as they should be slightly more detached and analytical about what can and cannot be achieved.
Project timing is often an issue as many products are seasonal or need to be launched at a particular time and missing a date can badly affect the cost case. However most equipment items require several months from order to delivery and adequate time has to be allowed for installation, testing, commissioning and training for even the simplest of processes. Whilst commissioning time is often a target for arbitrary reductions to meet a deadline this approach can easily lead to a protracted and inefficient build up of production with huge scrap levels and excessive ingredient losses and labour costs