Snellman

The cooperation between Pinja and Snellman began already in 2013 with production planning: which amount of each product will be made each day, and how the different animals and the cadaver parts used should be balanced.

The improved planning has enabled us to optimize warehouse space and preservability, which in turn have resulted in significant cost savings.

John Aspnäs, Chief Information Officer, Snellman

Benefits and savings

Over 20% diminished cold storage

Over 25 % reduction in waste

Challenge: Static and rigid production planning made it difficult to meet business challenges

Meat processing is a complex and vulnerable process: among many more phases, it involves managing which animals and how many are brought in, and the order in which the meat is cut. The production should also respond to changes in demand, as it is not possible to process large amounts of meat products to be stored for a long time.

It was nearly impossible to respond to market challenges with static and rigid planning that was based on ERP tools and Excel sheets.

Solution: Pinja’s iPES-system to optimize production planning fine-tuning

In 2017, the Snellman Group initiated a project to renew production management at all their factories. Pinja’s iPES-system was chosen to fine-tune the production planning, and it will be integrated into Snellman’s existing Wonderware MES system phase by phase. Fine-tuning production processes enables production planning and optimization by minute from one department to another.

Another significant area of emphasis is the Sales & Operations Planning process, where the Snellman Group will be implementing new functionalities in 2017. Production planning is guided by sales forecasts. These forecasts may change rapidly, and therefore the production management must be able to respond to possible changes of scenario.

The cooperation between Pinja and Snellman began already in 2013 with production planning: which amount of each product will be made each day, and how the different animals and the cadaver parts used should be balanced.

Shortly after the implementation of the new production planning system, the partners started to develop the purchase balance. Various ingredients and packaging materials are needed in the production of processed meat products. When the production planning is managed well, it is easier to purchase the right amount of ingredients and materials at the right time.

Clear time and cost savings

There has been a substantial reduction in the time spent in planning. Now the production managers can come to work at 7 am like everyone else instead of 5 am. “The planning horizon has extended essentially. Before the implementation of the system, the production could only be planned for one day ahead, now it can be planned for the entire week. In addition, it is now easier to foresee and manage the high demand of the holiday seasons.

The improved planning has enabled us to optimize warehouse space and preservability, which in turn have resulted in significant cost savings. The warehouse space used for cold storage has diminished by 20%, and there has been a 25% reduction in waste due to expiration dates. And respectively, it is now easier to optimize the amount of ingredients more accurately”, says John Aspnäs, the Chief Information Officer at Snellman.

Change management as well as overall communication between the sales, planning and production departments have improved and become more agile. This is why the PES will be implemented across the entire group to be used alongside the MES system.

Snellman in a nutshell

1951 Founded

Over 800 Employees

Over 2200 Pork and beef producer

Check out the services of the success story

iPES by Pinja

An optimal production plan is based on factual information on the status, capacity and materials of the supply chain.

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