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You Cannot Just Decide to Improve Yield by 5%

Setting a yield improvement target from the top of an organisation is not a plan. It is a statement of intent with no mechanism attached.

In food manufacturing, yield is a stack of interdependent variables, each requiring a different team, a different measurement, and a different set of decisions. Organisations that improve yield do so by breaking it apart, not by managing it from above.

The Yield Number Hides More Than It Reveals

Every production manager has sat in a meeting where someone at the top table said it.

“We need to improve yield by five percent.”

Everyone nods. The slide moves on. And then nothing changes, because the person who said it had no way of knowing which specific part of which specific process was responsible for which specific loss.

At Au2mate, we work with food and beverage producers on this challenge regularly, and we see it consistently: Yield targets that arrive from the top without a corresponding breakdown of the underlying mechanics are not strategy. They are wishful thinking dressed as a KPI.

Most people who talk about yield mean a ratio: how much finished product you extract from a given quantity of raw material. In cheese production, that ratio is the outcome of dozens of interacting variables, each of which can be measured, each of which can drift, and each of which can be improved independently.

Henrik Kæmpe, Operations Development Manager at Mammen Mejerierne, one of Denmark’s largest dairies, makes the complexity concrete. Yield includes how much salt the cheese contains, how many fine cheese particles are lost during production, how much product is lost through damaged corners or downgraded batches. Each of those can be broken down further.

  • How much fat is lost in the whey during cheese-making?
  • How much at a later production stage?

Every time you decompose a KPI, you find a more specific question, a more specific owner, and a more specific action. That decomposition is the only path to actually moving the number.

improve yield in dairies

The Management Decision That Cannot Be Made

Kæmpe is direct on this:

“You cannot just take a management decision saying, we want to improve yield with 5%. That’s not possible. Not like that.”

The function of management in a yield improvement programme is to create the conditions for the improvement, not to mandate the outcome.

They should pull together a cross-functional group that understands the production environment from the inside, typically a group consisting of team leads who see the process daily, and operators who can identify exactly where losses happen. They will then be in charge of identifying the parts of the production that needs improvements – outside the most obvious areas.

Their job is essentially to answer two questions: where is the biggest current failure, and where is the biggest latent opportunity? Those answers are often in different places, and addressing both requires more specific attention than a percentage target can provide.

The Cost of Not Breaking It Down

The argument for keeping yield as a single aggregate number is simplicity. It’ll give you one single metric to follow.

The problem is that a single number tells you nothing actionable when it moves in the wrong direction like,

  • Did you lose yield because of a sensor calibration issue?
  • Did a batch of milk come with an atypical fat content?
  • Are you seeing higher-than-expected losses in the brining stage?

You cannot know, and you cannot act, until you have disaggregated the number.

The financial stakes make this particularly important in dairy because raw material costs are significant. Cheese production uses ten litres of milk for every kilo of cheese, so even a small but consistent deviation in fat recovery compounds into a substantial cost over a year of production. The margin for comfortable inaction is narrow.

What Comes After the Breakdown

Once the sub-metrics are identified, the work shifts. Each component now needs its own measurement mechanism, its own owner, and its own feedback loop.

The time horizon for these loops are different in nature. Some loops close in hours while others – particularly in mature cheese production where a process change today – may not be visible in the product for months, and will require a longer-term discipline that most organisations find difficult to sustain.

This is where data infrastructure becomes the enabling constraint.

You can identify the right sub-metrics, but if your measurement systems cannot deliver reliable, trusted data at the right granularity to the people who need to act on it, the decomposition has accomplished nothing.

The data must reach the right level of the organisation. Not a number on a board that no one owns, but a measurement that a specific team can move.

So, How Do We Improve Yield by 5 Percent?

The path from “we need to improve yield by five percent” to actually improving it runs entirely through decomposition.

  • Identify the components.
  • Assign ownership.
  • Build the measurement.
  • Track the feedback loop at the right time horizon for each variable.

The management team’s role is to create the conditions, invest in the infrastructure, and resist the temptation to manage a number that is too aggregated to be actionable.

Yield improvement is not declared from the boardroom. It is engineered on the floor, one sub-metric at a time.


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