ML 100 Awards
 
nestlepizza.png“Since implementing ScheduleSoft, we know we have the right number of people scheduled for what we are being asked to produce.” —Paul Herold, Factory Manager, Nestlé

 

 

 

 

PROJECT


Nestlé Pizza optimizes workforce utilization and production planning

Think you have trouble predicting consumer demand for your products? Consider the folks at Nestlé Pizza, a division of Nestlé USA, the market leader in the $4 billion frozen pizza market.

Consumer demand can move up or down depending on seasonal and other factors. A particularly attractive Super Bowl coming up? Demand may spike. Snowstorm in the Midwest? Demand may fall.

Because of such factors as well as other demand changes, Nestlé, whose brands include DiGiorno, Tombstone, Jack’s, and California Pizza Kitchen, is frequently required to make sales-driven adjustments to forecasts and production schedules. And that can make labor planning and scheduling difficult for the pizza division, which utilizes a large direct store delivery (DSD) sales organization to deliver, sell, and merchandize its products.

Recently, managers at the company’s Medford, WI, facility started looking for help with their staffing needs, given the scheduling fluctuations they faced. To execute a labor planning and scheduling strategy and create a more agile workforce, Nestlé Pizza implemented ScheduleSoft’s Workforce Scheduling software. The project allowed the company to generate an optimized, flexible workforce schedule that adjusts to changes in production demand.

The project was recognized with a 2011 PM100 Award in the Operational Excellence category.

The Agile Workforce project helped Nestlé Pizza gain visibility into and control of labor costs and to understand these costs’ effect on product costs. At the same time it provided employees with transparency, consistency, and timely information about scheduling.

With Agile Workforce, the Medford facility has been able to more fluidly adjust to market-driven demand changes, efficiently adjusting production schedules while maintaining labor efficiency.

With clear visibility to near-term labor demands, the facility has improved its longer-term labor planning and is now better able to prepare for the typical seasonality of the frozen pizza business.

“We have seen significant operational efficiencies since implementing ScheduleSoft,” says Paul Herold, factory manager at Nestlé. “Now we know we have the right number of people scheduled for what we are being asked to produce.”