So you're sitting there, having just read my blog entries from 3, 19, 22 and 25 August (you have read them, haven't you?) on ADR-First defect control concepts for potato strips. And you are wondering how in the world to implement such a concept cost-effectively. Here come the answers:
It depends on your situation: assuming you have responsibility for any one specific processing line, whether as an engineer, plant manager or corporate executive. Or maybe just "interested person". Your "situation" means:
* Regarding the area in your line between cutting (whether hydro knives or mechanical or both) and blanching, how old/depreciated is your equipment? What are your plans for possible upgrades to your line? What is the timing?
The more depreciated your line in the area of sorters and ADRs between cutting and blanching, the better ADR-First pays back. If you need to rearrange your line, you may need to write off some of your conveyors decking, etc. If these have already been written down, then they don't impact your capital plan.
If you are already planning on upgrading your line in the near future, the incremental cost of ADR-First vs. the standard approach is often surprisingly low. ADR-First is actually a simpler line, so conveyor costs are reduced vs. "the norm". This offsets the incremental capital of increasing your ADR capacity by 150-200%.
* Over the next few years, how much of your product will be in strip (or steak cut) form, rather than wedges or other shapes not conducive to ADR functionality?
The more strips you run, the better ADR-First pays back. If more than 50% of your product is strips, then ADR-First might be for you. If most of your product is not strips, use the sorter-first approach.
* What is the maximum incoming defect level you expect to see in your raw product over the next few years, say during the worst month of storage season?
If your incoming strip defect level stays below 20% through all of storage season, you can achieve typical product quality with the sorter-first approach. If you see 25% for a few weeks, the payback of ADR-First starts to become attractive. If you see 30% or more defect for more than a few days per year, ADR-First will be critical to your profitability.
* What quality targets are you expecting for your products? Are you intending to sell into markets where very high quality is required (e.g., Japan)?
If you sell much product to Japan, ADR-First will help you avoid those discussions with your customers about product quality. Remember, ADR-First quality can be 400% better than sorter-first (sorter first removes 64% of incoming defect, leaving 36% in the line; ADR-First removes 93% of incoming defect, leaving 7% in the line; 36% is 400+% of 7%).
OK, OK... maybe the math is a bit convoluted, but hopefully you get the gist of the message: regarding defect removal, ADR-First is in a class by itself.
* What is the value of your co-product (what you do with potato material rejected from your strip line) relative to strips? Is there not much value difference, or is your price for strips much higher than your co-product?
ADR-First is about achieving the highest defect removal while at the same time maximizing the amount of raw product that becomes finished strips. For this to make any economic sense, there must be an incremental value for the strips, plus sufficient demand to absorb the additional production economically. If your business is really about co-product as opposed to cuts, ADR-First is not for you. ADR-First is for processors who make most of their money with potato strips.
Lots to digest, I know. But let me know what you all think!
I will be on vacation next week, and so will not post for a few days. Look for something here the week of August 25.
Tim
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