Poultry. Newsletter. B Logic Process Navigator 4-5. B Logic Label Composer 18. From single machines to total solutions

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Poultry Newsletter FROM BAADER LINCO - WWW.baader.com From single machines to total solutions Over the 95 years the BAADER Group has existed, many things have changed, but one thing remains the same: The company development has always been market driven. It is our commitment to offer our customers the right solution that drives our product development and daily operations. VIV EUROPE May 2014 Message from the management 2 Single bird processing 3 B Logic Process Navigator 4-5 Control and protect flock quality 6-7 Controlled distribution of birds 8-9 New plant in Thorne 10-11 If we take a look down the memory lane we will see that focus has changed from single machine optimization to process optimization. We still strive to develop efficient and intelligent machines, but we have added another layer to our solutions: a software system that will help our customers navigate through production and achieve profit optimization. Any poultry processor knows how easily production can get off track. Even the most well-oiled production infrastructure will eventually be affected by deviations from planning. The challenge is to rectify and adjust immediately because off track means losing money. Our B Logic Process Navigator is all about notifying deviations so our customers can react and keep production on track. Read more about the interaction between shop-floor and software inside this newsletter. Intelligent deboning 12-13 First-class weighing 14-15 Total packing solutions 16-17 B Logic Label Composer 18 Organic Poultry in Europe 19 Meet us here in 2014 20 Manual cut-up device from 1951

Grow with us Message from the management BAADER LINCO has indeed had an interesting start to 2014. We have benefited from good customer relations, particularly in the UK and Asia, where we are expanding our markets significantly this year. Chesterfield Poultry (UK) has shown their confidence in us by choosing us as their preferred supplier of a complete new 12.000 b/h plant in Thorne. We are looking very much forward to working closely with Chesterfield on this high-speed plant and on new developments that will benefit both Chesterfield Poultry, BAADER LINCO and other customers. Asia is a fast moving market. Not only is the consumption of poultry meat growing, but also the processing methods are changing rapidly. Our Asian customers increasingly want automized modern high-speed plants with focus on further processing. BAADER LINCO has been established in the market for many years in fact we delivered our first processing equipment to a Thai customer more than 50 years ago. Years of persistant product development and promotional activities now help ensure that our customers continue to invest in us as their business partner. Mr. Andy Miller (CEO), Mr. Torsten Krausen (Chairman of Excecutive Commettee) and the BAADER LINCO sales force 2

balanced production planning Single bird processing Production planning on track B Logic process navigation software Flock characteristics Order intake/sales forecasts Production capacities Optimized utilization of each bird The cost of raw material (live birds) is the largest variable production cost our customers face in their business. Therefore, we feel responsible that our equipment is capable of taking care of this valuable cargo by gentle yet efficient product handling. But our responsibility does not stop here. We want our customers to be able to optimize the utilization of the valuable birds, and we want you to be able to make knowledge-based decisions about where in the production the birds should be processed. We offer our customers reliable equipment to capture individual bird characteristics in terms of weight and quality grade: Automatic data capturing Highly reliable data No human errors in data collection and data processing Captured information follow the bird throughout processing Qualified decisions about bird utilization Optimized utilization of each bird Weight capturing Weight data can be captured in several places in the production. The earlier the weight of each bird is captured the earlier you get insight into the match between actual flock intake and production planning. In case of major deviations, you would probably prefer to know it as fast as possible to make adjustments. This is why it can be of high value to install a Weighing Transfer Machine before evisceration as this will provide valuable minutes of chilling time to make adjustments. Our software interfaces with the machine and offers a realtime overview of weight distribution within the flock. B Logic furthermore sends out notifications if production is off track. Grade capturing Our ClassifEYE Vision System determines the captured quality grade of each bird. The set-up of the grade determination is highly intuitive and the prioritization of accepted quality grades in production can easily be adjusted in our production management software. 3

DAshboard control of production B Logic Process Navigator Learning and innovation go hand in hand Our use of production management software was founded in the 1980s. Since then we have added layer upon layer, basing our innovation on market trends and well-tested software products. Today we present to you our new generation B Logic Process Navigation software. 1980s 1990s 2000s 2010s Overhead weighing Belt grading Live bird weight Vision system Weigh transfer Distribution control Real-time notifications Process optimization Pack and label configurable Software B Logic is a modular software system. It is configurable to fit any BAADER LINCO plant and specific user needs within the plant. Operator Line manager Management Clear and visual instructions Planning and notifications Business overview, reports and escalation notifications 4

Notifications to act upon B Logic presents key production figures captured on the shopfloor, focusing on product distribution, yield control, utilization rates, performances and product qualities. It is able to monitor the complete plant from reception area to inventory. Our customers can set up thresholds for specific processes, and recieve notifications immediately if a process gets off track. Real-time notifications enable immediate corrections and thereby improved profitability. From dasbboard overview to detailed reporting The dashboard is configurable to show trends from specific processes. Each tile on the dashboard will show real-time production figures, and detailed reporting is obtained by clicking on the tile. The configurability also applies to the reporting view making it possible to set up various reports on the same screen view. This helps the user to compare information collected from different processes, e.g. product distribution and order intake. Key benefits: Real-time notifications to facilitate immediate corrections Configurable screen layouts Analyze processing against historical performance data and target settings Optimize processing continuously to meet business targets The high degree of configurability makes it possible for our customers to divide information into categories using tile colours, photos and icons to identify information categories. Notification on dashboard B Logic production reports 5

Know flock characteristics Control and protect flock quality Weight: 1250 g Weight: 3450 g A Grade B Grade Suited for food service cut-up Suited for Proflex cut-up and deboning line No. 2 Flock intake quality might be given at the time of unloading the truck, but it is still of great importance to register key figures that indicate the actual received live bird quality and weight - and thus the expected quality to be processed at the plant. Crate Weighing System (CWS) Our CWS captures the weight of each crate directly in the live bird handling system both full and empty. Combining the system with DOA registration and bird count after shackling, a number of interesting data can be offered to the user: Actual total live weight intake Average live bird weight Total number of DOA s Average crate density Supplier tracking Intake planning Use the information to assess whether the delivered flock was as expected, and get an early indication of weight distribution of the birds to be processed during the next hours at the plant. Equipment can be adjusted accordingly to achieve optimum functioning, and production planning can be aligned if necessary. Protect quality Once birds are unloaded and shackled, processing should be gentle to each bird in order to protect the meat quality. First processing is particularly important to obtain a good endproduct quality as injuries added to the birds cannot be remedied. BAADER LINCO focuses on carcass care in all equipment design. It is our responsibility to protect our customers valuable raw material, and we have experienced people with extensive regional knowledge who can design the optimal flow through live bird handling, stunning, bleeding, scalding and picking the very foundation to avoid irreversible product damages. Adjustable equipment The equipment is efficient and adjustable to fit the product being processed. Our new Tunnel Picker model 286 has adjustable picking rows to ensure correct picking despite a great variety of bird sizes being processed. The picking can be adjusted both vertically and horizontally to fit different bird sizes and picking heads are offset relatively to each other in order to maximize the efficient picking area. 6

Control quality First processing performance and damages on birds can be constantly monitored by our vision quality classification system, the ClassifEYE. In-line collection of detected injuries can be used to take immediate actions to improve first processing. The nature of the bruises indicates if caused by farm damages and violent live handling, ineffective stunning, wrong picker adjustment, over-scalding etc. Immediate corrective actions prevent further avoidable downgrades and subsequent profit loss. B Logic is able to notify if too many defects are detected. Real-time notification is a prerequisite for immediate corrections. Examples of ClassifEYE camera detections: Furthermore, the quality detection enables our customers to predict if upcoming whole bird distribution will be consistent with the scheduled. A lack of A-grades in specified weight ranges could force the processor to adjust grade selection or weight ranges, or maybe postpone production of specific products knowing that the required raw material is available in the next flock. Feathers on wings caused by improper scalding or picking Breast bruises caused by rough live-bird-handling or during stunning Example of B Logic notification system: Notification about too many red wing tips Analyzing real-time production data Immediate upstream corrections 7

Poultry newsletter optimi z e f lock val u e Controlled distribution of birds Leg quarters & anatomical legs Breast Deboner In this layout we show a typical downstream distribution of birds to whole bird packing, food service cut-up and Proflex Cut-Up line. Being able to route each bird through processing ensures optimized utilization of each bird and fullfilment of production needs. Tenderloins Breast fillets Thighs bone in/out Drumsticks & mid-joint Drumsticks 5 Weight and quality grading Whole wings Selective Transfer Machine Proflex Cut-Up 1 Keel Food service cut-up 3 Wings Breast fillets Thighs 4 Drumsticks 8 Shackling after chilling 2 Whole bird packing

1 2 3 Know your birds Fully integrated and automatic weighing and quality grading of each bird after chilling. Packing whole birds As an example, packing of whole birds could be limited to A-grade birds in a specific weight range, e.g. 1300-1600 g. After distribution to the whole bird packing line, birds can be dropped and packed according to further detailed weight ranges. Coordinated bird distribution The Selective Buffer Transfer Machine coordinates the distribution between the food service cut-up and Proflex Cut- Up. The brain behind the distribution is the production management software set up to match production needs. Our customers can set up a distribution priority ranking in order to control reprioritisation in case of a shortage of A- grades or weight ranges. 4 Food service cut-up Whole birds sent to the food service cut-up could be set to A-grades within a weight range of 1100-1250 g. The system is designed to meet all 9 and 8-piece requirements. In this specific layout the food service cut-up is a stand-alone line. It could, however, also be installed as an integrated part of the Proflex Cut-Up. The use of by-passes on every Proflex Cut-Up unit would then control the distribution of birds to the food service cut-up. 5 Flexible cut-up Cut-up requires flexibility in production. Our Proflex Cut-Up has design flexibility as the line can be designed to drop wherever needed and processing flexibility in terms of bypasses on specific cutting units. new Selective transfer 138 This machine automatically transfers birds from the distribution line to the cut-up system. All individual weight and grade information is automatically transferred with each bird in order to distribute birds to cut-up units. The buffer principle enables the system to eliminate empty shackles or handle difference in line speed between the distribution and the cut-up line. Full utilization of the cut-up line is thus ensured. Key benefits: Incoming distribution line speed up to 13,500 bph Selective transfer system to cut-up line based on individual quality and weight grade Transfer rate over 98% - carrier segments in clip system for better grip Possibility to drop one-leg-hangers before entering the cut-up line 9

Shared ambitions to achieve growth New halal plant in Thorne, UK Mr. Faz Ahmed and Mr. Andy Miller Focus areas Wide range in live bird weight (1.55 4.15 kg) Animal welfare in halal slaughtering Constant surveillance of weight distribution and yield performances High degree of production flexibility Designed space for potential growth and development Increased consumption and a significant increase in demand for Chesterfield Poultry products require a capacity expansion programme. A new plant will be built and installed in Thorne where our customer will reach a total capacity of 12,000 birds per hour. BAADER LINCO and Chesterfield Poultry have designed the plant layout together to optimize the potential for future growth and product development. Animal welfare that pays off The BAADER LINCO live bird handling system optimizes both loading time of drawers at the farm and transportation capacity. In fact, with this system Chesterfield will be transporting the most live birds per truck. The transport modules are stable, facilitating easy stacking. Our customer can stack and load two double 5 tier modules without compromising the airflow between the modules and thereby ensuring good animal welfare during transport. Halal slaughtering BAADER LINCO has been operating many years on markets where halal slaughtering is common practice. We have drawn on this vast experience designing the solution for Chesterfield Poultry. There is, of course, incorporated flexibility, space and time in the solution to conform to the Halal requirements. Bleed out is enhanced by using Electrical Muscle Stimulation. Room for flexibility The large spread in the live weight range places high demands on production flexibility. It is the characteristic of our machines that they are designed to be highly adjustable. This 10 applies to both pickers, EV machines, transfer machines etc. The distribution of the birds to specific packing and cut-up processes is easily adjusted in the production management system, and by-passes on all cut-up units (except for wingstretcher and pre-cutter) and controlled drop-off allow for full production flexibility. Focus on hygiene Safe food is a concern that Chesterfield Poultry and BAADER LINCO have in common. Focus is on hygiene as early as the reception area where the lairage area for live birds is strictly separated from the pick-up area for clean drawers and modules. Thorough washing and desinfection of drawers and modules prevent cross contamination. Bird washing in the Typhoon Shower System allows for cleaner water in the scalding process. Furthermore, the water in the Typhoon is continuously being filtered to achieve high quality water in the scalder. Our Clean Air Chilling System offers superior hygiene performance through single layer design and thus no cross contamination caused by dripping. Yield control In today s poultry processing there is an increasing focus on yield control and optimization. The equation is very simple:

Improvement of raw material yield increases profit. This regard is, of course, included in the overall solution and Chesterfield Poultry will be able to control many aspects of yield. Live bird yield can be controlled by weighing both full and empty drawers on the live bird handling system. In order to monitor the individual bird yield during processing, Chesterfield Poultry has chosen to install three Weigh Transfer Machines model 520: After slaughtering, after evisceration and after chilling. This set-up allows for monitoring and controlling mass losses during evisceration and chilling. Single bird processing By capturing the weight of each bird on the Weigh Transfer Machine model 520 after slaughtering, Chesterfield Poultry obtains an overview of weight distribution within the flock 168 minutes before distribution valuable time to make production adjustments if planning does not hold true. A ClassifEYE Vision System will attach a quality grade to each bird so distribution can be based on both weight, count and quality. Chesterfield Poultry will then be able to drop 5000 7000 A-grade birds to whole bird packing and send the remaining birds to the Proflex Cut-Up line. Full flexibility of the cut-up production is achieved by installing a by-pass on every cutting unit. Thus, it becomes possible to by-pass birds and send them directly to the food service cut-up at the end of the cut-up system if they meet the weight and quality requirements. It will be a poultry factory designed to meet today s requirements and able to adapt to tomorrows technology. Chesterfield Poultry has successfully grown its business in a challenging market. The journey from our father s butchers shop to the largest throughput Halal facility in the UK has been achieved by a committed family, hard work, dedicated supply farms and a continued focus on service and quality. Our chosen partner for this project is BAADER LINCO. We believe together we will set standards that will deliver solutions that are above our customers expectations for value, quality and food safe poultry. The exceptional character of Andy Miller (CEO), and the rest of the BAADER LINCO team has been pivotal in the realization of this project. Currently, we are externally audited by the Sharia Halal Board, we hold grade A BRC and Red Tractor accreditation at all our facilities. Our commitment to external accreditation will increase as our market becomes more aware of the confidence these bodies offer to our products and services. Our new factory will have animal and staff welfare, product presentation, temperature control, local community relations, hygiene and food safety at its core values. Delivering this project still requires a lot of hard work and investment and I am confident with BAADER LINCO s team, my team and all those suppliers to our business that have supported Chesterfield Poultry in the past, a successful new dynamic business will be created in Thorne, Doncaster for years to come. Mr. Nadeem Iqbal Managing Director Chesterfield Poultry, Thorne Typhoon shower system Key benefits: Pre-washing and scalding on back side to prevent cooked breast meat Water filtering and recycling Reduced water consumption Reduced solids in water in the subsequent Air Jet Scalders 11

consistent reliability from the deboning line Automation and intelligence in deboning Capturing individual bird weight allows for distributing birds to intelligent deboning lines in order to maximize deboning yield. The BAADER LINCO deboning line offers a high degree of flexibility to process a wide bird size range. 1 1 Intelligent deboning The Breast Deboner model 656 represents an intelligent deboning system that measures each front half in order to adapt the deboning process to the individual bird size. The result is high throughput, maximized yield and excellent product quality. 2 X-ray scanning The advanced x-ray technology enables an effective and consistent detection of bones or foreign objects thus ensuring food safety of the endproduct. Furthermore, the x-ray process provides valuable feedback for upstream adjustments on the deboning machinery. 12

x-ray scanner Developing the new X-Ray Scanner The new X-Ray Scanner model 886 was developed in close cooperation with Rose Poultry A/S (Denmark). First the machine was tested off-line and then after proving a high detection rate, it was installed in-line on one of the two deboning lines. This gave BAADER LINCO a good opportunity to further fine-tune the machine in order to optimize its performance. After seeing that the machine complied with the objectives initially set with BAAD- ER LINCO, Rose Poultry A/S decided to install a new belt grading system after the x-ray scanner. Contributing to developing new machinery together with BAADER LINCO has been both interesting and instructive. We give great credit to the BAADER LINCO team. They have worked highly systematically and industriously and not least, the dialogue and the follow-up have been very satisfying Torben Brandst Sørensen Plant Manager, Rose Poultry A/S Nete lave renderet billede 2 3 4 3 Accurate batching High accuracy weighing and sophisticated B Logic Grading software ensure efficient batching. The software platform is our own-developed and well-tested weighing algorithm that focuses on reducing give-away in each bin and avoids sending products over the end of the grader with subsequent re-handling. 4 Labelling at the grader Fast printing of labels directly at the grader makes it possible to attach tracking labels or finished goods labels to the graded products. 5 Yield monitoring The B Logic Batch Yield shows to what extent a specific amount of front halves dropped to the deboning line is utilized to make saleable fillets. Target yields can be set and used to compare the actual production results. Notifications will be sent if yield is out of target. 13

Grading poultry parts First-class weighing Key benefits: Highly accurate weighing High machine reliability ensured by robust design and low maintenance Smooth and gentle product transfer to and from the scale Straightforward and hygienic construction Dynamic calibration Stainless steel motor This single-lane belt scale model 1800 was developed to meet our customers increasing demand for highly reliable and accurate weighing - even in challenging production environments. The high accuracy achieved on this belt scale is a combination of intelligent design and effective software solutions. High accuracy weighing is essential for correct sorting, grading, batching and packing. It reduces the economic impact of a high give-away or repeatedly underweight packing. The standard deviation is as low as 0.3 gram* meaning that 68% of all weighing results for a specific item will be within the average variation value of +/- 0.3 g. Put differently: Up to 99.7% of the products will be within a +/- 1 gram variation. For accurate weighing and longer belt life, the belt must always be centered on the scale when running. The weighing machine has an adjustment feature that makes it easy and fast to position the belt correctly. It only takes a few seconds to set it. The product sensor is fully fixed and yet it is adjustable. In its protectable bracket it cannot be pushed or turned out of position. Only by using a standard tool it can be height adjusted to get the best possible detection of the products running on the scale. The size of the weighing plate is configurable ensuring maximum capacity given a specific product length. In fact, you can easily replace the weighing plate depending on product length and thus gain capacity. A small nose bar radius ensures smooth and gentle product transfer to and from the weighing machine in order to guarantee high capacity. * The standard deviation depends on in-feed, product characteristics and enviromental impact 14 Sensor positioning Belt adjustment

B Logic Grading The grading software is built upon a dashboard platform that allows for highly intuitive data presentation and user-interface. Grader production jobs are easily created, started, finished, archived or reprioritized in the job management part of the grader software running on an office PC or a shop-floor terminal. B Logic Grading interfaces to our B Logic Label Composer making it possible for the user to easily select the label to be used for a specific grader job. Key benefits: Complete real-time insight into grader production Highly configurable views to fit specific user requirements Aggregating batches from multiple lines reduces give-away Easy and flexible job execution 15

total packing solutions One platform to support all systems Performance, compliance and tracking are main challenges of today s poultry packaging operations. Reliable weighing equipment is a matter of course, but a coherent solution is achieved only when the shop-floor operator working on the packaging line is supported by a user-friendly software system. BAADER LINCO offers complete packing solutions supporting processes from order management to packing and inventory. Scaleable software solutions to fit any processing solution Static Scale for box packing This scale is suitable as a stand-alone box weighing unit or as part of an integrated packing solution. The scale can be combined with label printer and scanner. Key benefits: Robust construction Reliable weighing even in harsh environments Simple open design for easy wash-down and low maintenance Built-in overload protection Digital load cell sealed to IP69K 16

Centralized set-up B Logic has several office modules where general set-up is managed, e.g. language settings, customer information, product definitions etc. It is also on office level that B Logic Order Manager is controlling orders to be packed and where B Logic Label Composer is used to design labels. When all basic settings are done, the specific packing job can be assigned to a packing terminal. Ensure right-first-time operations Clear operation indications are supported by intuitive graphics and pictures on the touch screen mounted on the packing station. Each screen is highly configurable to show only the details necessary to carry out the specific product packing on the specific terminal. In fact, instructions are so intuitive that operators with a minimum of training and regardsless of language skills can easily work with this packing system. Optimize packing performance Perfomance depends on two main issues: Packing speed and number of errors. Speed is optimized by helping the packing operator to quickly identify the product to be packed and more importantly, ensuring fast printing of each label. Intuitive operation instructions facilitating fast and correct packing. It reduces training time and makes it easier to work with multi-language staff When packing multiple products on the same terminal, printing a wrong label is a potential error. By visualizing the product to be packed, the number of errors are reduced, and by visualizing the label to be printed on the touch screen, the packing operator can easily detect a mismatch between the actual and the expected label. Easy definition of raw material required to pack a product 17

simplicity in label design B Logic Label Composer Key benefits: Fast and flexible label creation Multiple label purposes and minimized label maintenance New standards for fast printing Easy label search function Our newly released B Logic Label Composer is an officelocated software specifically designed to create labels to the food industry. The result is extremely user-friendly label design software that focuses on avoiding repeated label designs and laborious creation procedures. When creating a new label the user works directly on a canvas which means that he will see the exact design of the label as it will be printed on the label printer. An intelligent data link function allows the user to insert variable information on the label. The software is installed with predefined links which draw the correct information from the system, e.g. product name, traceability code etc. This unique feature reduces the use of static text and ensures that the same label can be used for multiple products and customers. Thus the creation of new labels and the maintenance of existing labels are highly simplified. Print speed is critical to reduce errors and unproductive waiting time. BAADER LINCO has developed a direct printer driver to obtain optimal printing speed without queuing labels. Label queuing is often the main cause for incorrect labelling 18 of the products. The label software has a built-in barcode generator and a variety of barcode types can be composed and inserted directly when creating a new label. The B Logic Label Composer also offers the possibility to add QR codes to the label - a unique promotion and information tool to be used by the poultry processor or the distribution channel: Reference to a website, presentation videos, cooking recipes, traceability etc.

Organic enthusiasm in Denmark Sødam focuses on animal welfare European consumers are increasingly turning to organic food products because they expect a smaller environmental impact of production, improved animal welfare and healthier products. Sødams Øko Fjerkræslagteri ApS, located in Denmark, started its organic poultry production 10 years ago, and they can rightly be said to have a solid experience in organic production. Promoting ecology Every organic poultry processor has a strong message to be spread. A good medium for this could be the label information. B Logic Label Composer is able to design labels with QR codes referring to websites, presentation videos, etc., explaining the organic production methods. Sødam breeds their own organic chickens and turkeys, and gives the animals access to large outdoor areas and organic feed. Catching chickens on a large outdoor area can be challenging, and Sødam has teamed up with a local sports club to ensure enough fast hands. The chickens are slaughtered when they are 75 120 days old. When the animals are ready for slaughtering they are transported the short distance from the farm to Sødam s selfowned, small-scale processing plant during the nighttime, in order to keep them calm during transportation. The HFS2010 Water Stunner installed by BAADER LINCO leaves the chickens unconscious and insensible to pain. The inlet of the stunner ensures instant stunning and prevents pre-stunning. After evisceration the meat is air chilled and matured for 18 hours. The result is a high quality meat with a modest weight loss and good structure. Hans Johnsen Production manager Sødam also takes care of sales and distribution of the finished products Scan and watch BAADER LINCO s Live Bird Handling System through their own webshop, various Michelin restaurants, specialty stores etc. The product range is wide and includes whole birds, fillets, deboned thighs, minced meat and chicken sausages. new Tunnel Picker 286 Key benefits: Easy adjustment of picking rows Maximized picking area Air blowing system at each picking bank prevents dirt, feathers and moisture from penetrating gear cabinet Easy access for effective wash down New gearwheel and shaft construction for easy maintenance 19