Processor of the Year: Tyson plants reflect 'most admired' reputation

Not at Tyson.

“We’ve looked at that trend in the industry as an opportunity,” says John Tyson. “For us it is a point of difference with our customers. We emphasize our strong research and development. The same with engineering. By having our own people tinkering, each breakthrough leads us to the next generation of equipment, better production, accelerated payback. This is a selling point with our customers.”

Cooked chicken strips with grill marks head for a portioner on a line making fajita kits.

With such stunning expansion of its production capability, replicating best practices where practical and possible becomes of paramount importance.

“From a quality standpoint, we ask what we can do better and differently,” explains Bond. “We work hard to get sharing [of best practices] between all of our facilities.”

Maintenance practices are a case in point.

“We have a team installing a highly advanced maintenance program,” says Bond. “Maintenance people used to work crisis to crisis. Now we emphasize predictive maintenance. We plan their work orders daily. Today they do a better job of preventing crises from an equipment, plant and team standpoint.”

With the diversity of plants now under Tyson’s wing has also come a broader range of plant solutions.

“We also shuffle people from our pork plans to our poultry plants, from poultry to beef…and cross-fertilize in this manner. We get an interaction of shared knowledge,” says John Tyson.

The Tyson heritage, it seems, thrives through growing pains.

Case history: Tyson’s Fayetteville complex

For generations, Tyson’s strength seemed to reside in specialization. Like Col. Sanders of Kentucky Fried Chicken ads, Tyson knew how to “do chicken right.” But the company’s production excellence already is proving to be one of its strongest assets as it re-creates the pork and beef businesses in the value-added mold it used to revolutionize the poultry industry.

A huge part of that success involves cost control and improving productivity and efficiencies through automation and better yield. Tyson spent $486 million in capital expenditures in fiscal 2004. Most were directed toward cost savings and income-generating projects. The company anticipates savings exceeding $63 million annually to emerge from the investment.

At Tyson, all investments must prove their worth. That includes investments in people.

“I’ve been with the company 15 years, and the production team members I’ve worked with have received pay increases virtually every year,” explains Richard Irvin, a complex manager who oversees several Tyson prepared foods plants, including the Fayetteville (Ark.) complex. “We continue to lower our cost of production. We had 2,000 people in 1991 at five facilities in three locations. We’re producing 60 percent more volume today with 200 fewer people than we had then. That is mostly due to automation and efficiencies. If you look at our labor rate times the hours put in, our [cost of production] is as good or better on a per-pound basis every year.”

FAYETTEVILLE PLANT FACTS Built in 1965; Tyson purchased in 1983 229,000 sq. ft. on 367 acres 750 hourly workers, 75 management Makes 295 products under multiple brand codes 21 active lines Average weekly production: 4.1 million lbs. Freezer capacity: 12 million lbs. 1 million man-hours (14 years) without a lost-time accident

“We have taken jobs that are tough physically and automated them,” explains Bond, noting the company has automated poultry and pork operations extensively over the last three years.

The flip side of Tyson capital investment has been plant rationalization. Since 2002, Tyson has closed and consolidated seven plants. Among the major moves has been the consolidation of operations in Fayetteville. In October 2004, Tyson closed a plant that had come with its purchase of Mexican Original Inc. in 1983 and streamlined the management structure at three other facilities, creating the current Fayetteville complex.

The purchase of Mexican Original, then a small corn and flour tortilla processor, had been the first Tyson further-processed venture outside of protein products. Tyson has worked its value-added magic from that base of Mexican staples, creating products that couple tortillas and taco shells with poultry and other meat protein items along with beans, starches and vegetables.