production control i: the key to profits david a. roland 1, sr., m. m. bryant 1, m. farmer 2 and a....
TRANSCRIPT
Production Control I: The Key To Profits
David A. Roland1, Sr., M. M. Bryant1, M. Farmer2 and A. Roland3
Auburn University1 Auburn, ALRidley Inc. 2 Mankato, MN
Roland Poultry Services, LLC. 3 Auburn, AL
SPSSAtlanta , GA January 21-23, 2008
Production Efficiency has never
been better!
Egg ProducersEgg Producers (losing money)(losing money)Egg ProducersEgg Producers (losing money)(losing money)
PRODUCTION MANAGER
MARKETING MANAGER
WE HAVE TOO MANY EGGS! Low Egg Prices
HIGH EGG PRICES AND PROFITSHIGH EGG PRICES AND PROFITS
MARKETING MANAGERGoal: highest egg price
We need more eggs!
PRODUCTION MANAGERGoal: optimal production
efficiency
Come on girls…gimmie all you got!
Production efficiency has never been
better!
Good Team Work Helps Optimize ProfitsGood Team Work Helps Optimize Profits
…OK!
EXCESS EGGS = LOW EGG PRICES = NEGATIVE RETURNSEXCESS EGGS = LOW EGG PRICES = NEGATIVE RETURNS
MARKETING MANAGERGoal: highest egg price
We have too many eggs! Losing Money
PRODUCTION MANAGERGoal: optimal production efficiency
Come on girls…gimmie all you got!
Production has never been better!
Poor Team Work Results in Excess Eggs and Negative ReturnsPoor Team Work Results in Excess Eggs and Negative Returns
?
PRODUCTION CONTROL = KEY TO PROFITSPRODUCTION CONTROL = KEY TO PROFITS
MARKETING MANAGERGoal: Highest Egg Price
We have enough eggs!
PRODUCTION MANAGER
Good Team Work = Reduced Egg Supply and Faster Return to ProfitsGood Team Work = Reduced Egg Supply and Faster Return to Profits
Okay girls. Take a
breather, demand has
been met
Thank you
New Goal: Optimal ProfitsNew Goal: Optimal Profits
Moral of the story….
Marketing and Production working together using new technology can improve production
control and profits!
.72 .75 .79 .83 .87 .92 .97
EconomicallyOptimal
maximumresponse
deficie
nt
Nutrientrequirementfor max profitvaries
Nutrient level (Lysine, Protein)Cost
Per
form
ance
How nutrient requirements are determined ?
1.0114.3 14.8 15.3 15.8 16.5 17.2 17.8 18.58.0
Feeding Based on Intake (Lys. Mg/h/d)
FC (lbs/100h/d) (W-36)
Diet Lys. 18 19 20 21 22 23
218 .97 792(229)a
881 (255)a
1013 (293)a
219 .92 792 835
220 .87 790 (229)a
792(255) a
908 (293)a
221 .83 753 792
222 .79 717 792
223 .75 612 (229)a
681 (255)a
792(293) a
Typical Feeding Program a ME/h/d
Profits (¢/doz.) (Phase II)
FC (lbs/100h/d) (W-36)
Diet Lys% 18 19 20 21 22 23
218 .97 ?
219 .92 ?
220 .87 ?
221 .83 ?
222 .79 ?
223 .75 ?
Feeding based on intake saves money. Blindly making changes.
Profits = UB egg price – [ Back of UB – Prod. Cost – Process. Cost – Feed Cost ]
Example:
Production cost
Cost of nest run into package product delivered
Back Urner Berry
Profits (¢/doz.) (Phase II)
Feed Consumption (lbs/100h/d) (W-36)
Diet Lys 18 19 20 21 22 23
218 .97 .57 .83 0.10 -0.69 -1.53 -2.03
219 .92 .63 1.09 0.84 -0.04 -0.91 -1.35
220 .87 .33 1.08 1.24 0.53 -0.30 -0.76
221 .83 -.10 1.07 1.16 0.76 0.19 -0.27
222 .79 -1.06 0.22 0.96 0.77 0.48 -0.05
223 .75 -2.30 -0.54 .55 0.49 0.17 -0.03
Best diet varies depending on egg and feed price
Profits (¢/doz.) (Phase II)
Feed Consumption (lbs/100/day)
Diet Lys% 18 19 20 21 22 23
218 .97 -17.43 -17.85 -19.00 -20.19 -21.11 -22.41
219 .92 -16.71 -17.14 -17.93 -18.96 -19.96 -21.20
220 .87 -16.36 -16.71 -16.94 -17.88 -18.95 -20.23
221 .83 -16.11 -16.33 -16.71 -17.23 -18.03 -19.31
222 .79 -16.30 -16.33 -16.59 -17.09 -17.33 -18.65
223 .75 -16.64 -16.46 -16.32 -17.05 -17.35 -18.09
Low Egg Prices with High Protein Cost
Profits (¢/doz.) (Phase II)
Feed Consumption (lbs/100/day)
Diet Lys% 18 19 20 21 22 23
218 .97 -14.86 -15.21 -16.27 -17.28 -18.08 -19.21
219 .92 -14.93 -15.30 -16.01 -16.98 -17.87 -18.99
220 .87 -15.30 -15.60 -15.80 -16.69 -17.71 -18.92
221 .83 -15.68 -15.70 -16.26 -16.77 -17.54 -18.79
222 .79 -16.50 -16.53 -16.80 -17.30 -17.55 -18.89
223 .75 -17.42 -17.27 -17.35 -17.91 -18.23 -19.03
Low Egg Prices with Low Protein Cost
18% P
Phase 1 - 18%
I. Prior to 50’s – fed one diet
II. 60’s (fed based on age)
III. 70’s ( fed based on intake)
IV. 80’s & 90’s(Envir. Cntl. & soft ware)
20th Century
21st Century
V. 2000’sEconometric Feeding
Important Periods in Optimizing Protein and Energy
Phase 2 - 17%
Phase 3 - 16%
18 19 20 21 22 18 19 20 21 22 18 19 20 21 22
Lbs/100 h/d
18 19 20 21 22 18 19 20 21 22 18 19 20 21 22
Lbs/100 h/d
Example: Product X18.9 18.5 17.5 16.8 16.2
% Prot. 20 14%
% Prot. 20 14%
VI. Production Control
Econometric Feeding and Management (E F & M) Program
1. Feed formulation
2. Traditional feeding program
3. Record keeping *
4. Econometric Feeding and Management (E F & M)
5. PRODUCTION CONTROL
Wks 21-36 Production (%) Egg weights (g)
flk F 18.9 17.5 16.3 dec 18.9 17.5 16.3 dec
1 99 78 87.6 87.0 86.5 1.4 54.6 54.0 54.4 0.2
2 00 78 88.6 87.5 87.2 1.4 56.5 56.3 55.2 1.4
3 00 78 88.9 88.5 86.5 2.4 56.6 55.5 55.7 0.9
4 01 68 94.3 94.2 92.3 2.0 56.4 55.8 55.5 0.9
5 02 68 93.1 91.7 91.9 1.2 58.1 57.5 57.4 0.7
6 02 68 89.1 89.1 88.2 0.9 55.9 55.7 55.4 0.5
7 02 68 90.4 89.8 88.3 2.1 55.3 54.8 54.4 0.9
8 02 68 91.9 89.7 92.1 55.3 54.7 54.3 1.0
9 02 68 95.2 93.3 93.2 2.0 55.5 55.4 54.7 0.8
Avg 91.0 90.1 89.6 1.4 56.0 55.5 55.2 0.8Lysine 1.02 0.92 0.83 1.02 0.92 0.83
Profits (¢/doz.) (Phase II)
FC (lbs/100 h/d)
Diet Lys.% 18 19 20 21 22 23
218 .97 0.10
219 .92 0.84
220 .871.24
(789-825)
221 .83 1.16
222 .79 0.96
223 .75 .55
20 lb = 789 mg/h/d , 20.9 lb = 825 mg/h/d (5% variation)
Can we improve Lysine (mg/h/d) Delivery?
20.0 20.9 lbs/100 h/d
Available Lysine Standard
640
690
740
790
840
890
21 33 45 57
640
690
740
790
5 10 15 20 25 30 35 40
Lys
ine
(mg
/h/d
)
Pre-Molt Post-Molt
I
II
III
I
II
III
Weeks of age Weeks after molt
IVIV
Phases Phases
Phase II - Egg Weight
56
57
58
59
60
61
62
18 19 20 21 22 23
lbs/100 h/d
Egg
wei
ght (
g)
0.970.920.870.830.790.75
218
219
220
221
222
223
%Lys Diet
How to Adjust Nutrient Intake in ± 2.5% (.5 lb) Increments
Lb/100/d 19 20 21
% Lysine .94 .89 .84
Intake(19.5)
19.0 - 19.9
(20.5)
20.0 – 20.9
(21.5)
21.0 – 21.9
Lys mg/h/d 817 817 817
Intake(19.0)
18.5 - 19.4
(20.0)
19.5 – 20.4
(21.0)
20.5 – 21.4
Lys mg/h/d 800 800 800
Intake(20.0)
19.5 - 20.4
(21.0)
20.5 – 21.4
(22.0)
21.5 – 22.4
Lys mg/h/d 840 840 840
Flock Variation(Avg. wk 21-36) Environmental Control
Flock EW (g) Prod. (%) Flock EW (g) Prod. (%)
1 51.1 86 6 52.2 80
2 51.3 88 7 52.8 86
3 53.2 81 8 52.4 87
4 53.3 81 9 54.9 84
5 53.6 83 10 53.5 78
Complex Avg. – best 1 million +Variation in egg weights = 3.8g/egg (3.0 lb/case) vs 1.2 g/eggVariation in egg production = 10 % vs 2.4 % diet