monitoring data for the team slide source: bradley j. hilty penn state dairy alliance (814) 865-4683...
TRANSCRIPT
![Page 1: Monitoring Data for the Team Slide Source: Bradley J. Hilty Penn State Dairy Alliance (814) 865-4683 bhilty@psu.edu](https://reader036.vdocuments.mx/reader036/viewer/2022081514/56649d925503460f94a7904d/html5/thumbnails/1.jpg)
Monitoring Data for the Monitoring Data for the TeamTeam
Slide Source:Bradley J. HiltyPenn State Dairy Alliance(814) [email protected]
![Page 2: Monitoring Data for the Team Slide Source: Bradley J. Hilty Penn State Dairy Alliance (814) 865-4683 bhilty@psu.edu](https://reader036.vdocuments.mx/reader036/viewer/2022081514/56649d925503460f94a7904d/html5/thumbnails/2.jpg)
Monitoring Data for the Profit TeamI. Successful dairy businesses
II. Key benchmarks for business
III. Targets for teamsa. Detecting bottlenecks
b. Monitoring monthly
c. Using resources
IV. Past team successes
![Page 3: Monitoring Data for the Team Slide Source: Bradley J. Hilty Penn State Dairy Alliance (814) 865-4683 bhilty@psu.edu](https://reader036.vdocuments.mx/reader036/viewer/2022081514/56649d925503460f94a7904d/html5/thumbnails/3.jpg)
I. Successful Dairy Businesses
![Page 4: Monitoring Data for the Team Slide Source: Bradley J. Hilty Penn State Dairy Alliance (814) 865-4683 bhilty@psu.edu](https://reader036.vdocuments.mx/reader036/viewer/2022081514/56649d925503460f94a7904d/html5/thumbnails/4.jpg)
I. Successful Dairy Businesses
Successful dairy businesses must provide:
1. Adequate returns to owner labor and management, in addition to:
2. Adequate returns to capital investments!
![Page 5: Monitoring Data for the Team Slide Source: Bradley J. Hilty Penn State Dairy Alliance (814) 865-4683 bhilty@psu.edu](https://reader036.vdocuments.mx/reader036/viewer/2022081514/56649d925503460f94a7904d/html5/thumbnails/5.jpg)
I. Successful Dairy Businesses--Profitability Factors
Profitability - ROA
Operations Efficiency Operating Expense Ratio
(OER)
Capital Efficiency Asset Turnover Ratio
(ATR)
Return to Unpaid Family Labor &
Owner Labor and Management
![Page 6: Monitoring Data for the Team Slide Source: Bradley J. Hilty Penn State Dairy Alliance (814) 865-4683 bhilty@psu.edu](https://reader036.vdocuments.mx/reader036/viewer/2022081514/56649d925503460f94a7904d/html5/thumbnails/6.jpg)
I. Successful Dairy Businesses
--Business Management Keys
Strategic Management:
Doing the RIGHT things!
Operations Management:
Doing THINGS right!
![Page 7: Monitoring Data for the Team Slide Source: Bradley J. Hilty Penn State Dairy Alliance (814) 865-4683 bhilty@psu.edu](https://reader036.vdocuments.mx/reader036/viewer/2022081514/56649d925503460f94a7904d/html5/thumbnails/7.jpg)
Strategic Management Deals with the “Big Picture”
![Page 8: Monitoring Data for the Team Slide Source: Bradley J. Hilty Penn State Dairy Alliance (814) 865-4683 bhilty@psu.edu](https://reader036.vdocuments.mx/reader036/viewer/2022081514/56649d925503460f94a7904d/html5/thumbnails/8.jpg)
II. Key Benchmarks for Business
![Page 9: Monitoring Data for the Team Slide Source: Bradley J. Hilty Penn State Dairy Alliance (814) 865-4683 bhilty@psu.edu](https://reader036.vdocuments.mx/reader036/viewer/2022081514/56649d925503460f94a7904d/html5/thumbnails/9.jpg)
II. Key benchmarks for business Profitability
ROA – 8-10% Financial efficiency
OER – <75% for corp. <65% other structures Capital efficiency
ATR - >.60 dairy and crops; >1 dairy only
![Page 10: Monitoring Data for the Team Slide Source: Bradley J. Hilty Penn State Dairy Alliance (814) 865-4683 bhilty@psu.edu](https://reader036.vdocuments.mx/reader036/viewer/2022081514/56649d925503460f94a7904d/html5/thumbnails/10.jpg)
Profitability
Return on Assets(ROA) >10%
Liquidity
Term Debt & Lease Coverage Ratio (TDLCR) > 1.20
Solvency
% Equity% Equity > 60%
Financial EfficiencyOperating Expense Ratio
OER< 75%-Corp OER<65% -SP/P
Capital EfficiencyAsset Turnover Ratio
ATR >.6 Dairy & Crops
ATR> 1.0 Dairy Five “Star”
Financial Benchmarks
II. Key benchmarks for business
![Page 11: Monitoring Data for the Team Slide Source: Bradley J. Hilty Penn State Dairy Alliance (814) 865-4683 bhilty@psu.edu](https://reader036.vdocuments.mx/reader036/viewer/2022081514/56649d925503460f94a7904d/html5/thumbnails/11.jpg)
Analyzing Reports Key Production Areas
Management Area Benchmark GoalProduction Milk/Cow/Day 85Repro Status Days in Milk 175-185Repro Performance Pregnancy Rate 22-24%Udder Health SCC <200 KTotal Cow Management Cull Rate 25-35%
Other diagnostic benchmarks are also important.
II. Key benchmarks for business
![Page 12: Monitoring Data for the Team Slide Source: Bradley J. Hilty Penn State Dairy Alliance (814) 865-4683 bhilty@psu.edu](https://reader036.vdocuments.mx/reader036/viewer/2022081514/56649d925503460f94a7904d/html5/thumbnails/12.jpg)
III. Targets for Teams
a. Detecting Bottlenecks
![Page 13: Monitoring Data for the Team Slide Source: Bradley J. Hilty Penn State Dairy Alliance (814) 865-4683 bhilty@psu.edu](https://reader036.vdocuments.mx/reader036/viewer/2022081514/56649d925503460f94a7904d/html5/thumbnails/13.jpg)
III. Targets for Teams
Monitoring the right information helps detect and prevent bottlenecks
![Page 14: Monitoring Data for the Team Slide Source: Bradley J. Hilty Penn State Dairy Alliance (814) 865-4683 bhilty@psu.edu](https://reader036.vdocuments.mx/reader036/viewer/2022081514/56649d925503460f94a7904d/html5/thumbnails/14.jpg)
Busines$ense What is a Bottleneck?
PRODUCTS
Production Systems Are Pipelines
INPUTS
![Page 15: Monitoring Data for the Team Slide Source: Bradley J. Hilty Penn State Dairy Alliance (814) 865-4683 bhilty@psu.edu](https://reader036.vdocuments.mx/reader036/viewer/2022081514/56649d925503460f94a7904d/html5/thumbnails/15.jpg)
Busines$enseWhat is a Bottleneck?
INPUTS PRODUCTS
A restriction in the product pipeline
It is important to detect & correct the most restrictive bottleneck first.
Fixing the wrong bottleneck is of no benefit.
![Page 16: Monitoring Data for the Team Slide Source: Bradley J. Hilty Penn State Dairy Alliance (814) 865-4683 bhilty@psu.edu](https://reader036.vdocuments.mx/reader036/viewer/2022081514/56649d925503460f94a7904d/html5/thumbnails/16.jpg)
III. Targets for Teams
b. Monitoring Monthly
![Page 17: Monitoring Data for the Team Slide Source: Bradley J. Hilty Penn State Dairy Alliance (814) 865-4683 bhilty@psu.edu](https://reader036.vdocuments.mx/reader036/viewer/2022081514/56649d925503460f94a7904d/html5/thumbnails/17.jpg)
III. Targets for Teams---Using the right information
What factors are critical to success? Milk Volume
Milk per cow per day DIM
Repro Performance Udder Health - SCC
Cow numbers Cull Rate Replacement performance Repro Performance
![Page 18: Monitoring Data for the Team Slide Source: Bradley J. Hilty Penn State Dairy Alliance (814) 865-4683 bhilty@psu.edu](https://reader036.vdocuments.mx/reader036/viewer/2022081514/56649d925503460f94a7904d/html5/thumbnails/18.jpg)
III. Targets for Teams---What are key indicators?
Milk per cow per day DMI Milk Starts Peak phase milk
Components Prot / Fat Ratio
Udder Health Early Lactation SCC
Culling Transition cow problems
![Page 19: Monitoring Data for the Team Slide Source: Bradley J. Hilty Penn State Dairy Alliance (814) 865-4683 bhilty@psu.edu](https://reader036.vdocuments.mx/reader036/viewer/2022081514/56649d925503460f94a7904d/html5/thumbnails/19.jpg)
III. Targets for Teams---Monitoring information
Milk Production – Daily Feeding data – Daily??
DMI, FE, IOFC SCC / Milk Quality Indicators – Dairy tests PG rate – 21 days Cull Rate – monthly / annually Others – see monthly monitor
![Page 20: Monitoring Data for the Team Slide Source: Bradley J. Hilty Penn State Dairy Alliance (814) 865-4683 bhilty@psu.edu](https://reader036.vdocuments.mx/reader036/viewer/2022081514/56649d925503460f94a7904d/html5/thumbnails/20.jpg)
III. Targets for Teams
c. Using resources
![Page 21: Monitoring Data for the Team Slide Source: Bradley J. Hilty Penn State Dairy Alliance (814) 865-4683 bhilty@psu.edu](https://reader036.vdocuments.mx/reader036/viewer/2022081514/56649d925503460f94a7904d/html5/thumbnails/21.jpg)
Monitoring Tool
Monthly Monitor
Available on website or through Dairy Alliance office at:
1-888-373-7232
Monthly Monitor 3.0.xls
![Page 22: Monitoring Data for the Team Slide Source: Bradley J. Hilty Penn State Dairy Alliance (814) 865-4683 bhilty@psu.edu](https://reader036.vdocuments.mx/reader036/viewer/2022081514/56649d925503460f94a7904d/html5/thumbnails/22.jpg)
Publication:Analyzing Your Dairy Business: A Systematic Approach to Using Benchmarks
Profit Team Tools
Contact the Dairy Alliance Office for copies at:1-888-373-7232
![Page 23: Monitoring Data for the Team Slide Source: Bradley J. Hilty Penn State Dairy Alliance (814) 865-4683 bhilty@psu.edu](https://reader036.vdocuments.mx/reader036/viewer/2022081514/56649d925503460f94a7904d/html5/thumbnails/23.jpg)
Other Profit Team Tools
Dairy Farm Business Summary
Contact the Dairy Alliance Office for more information at:1-888-373-7232
![Page 24: Monitoring Data for the Team Slide Source: Bradley J. Hilty Penn State Dairy Alliance (814) 865-4683 bhilty@psu.edu](https://reader036.vdocuments.mx/reader036/viewer/2022081514/56649d925503460f94a7904d/html5/thumbnails/24.jpg)
PA Dairy Tool from Penn State
Contact the Dairy Alliance Office for more information at:
1-888-373-7232
![Page 25: Monitoring Data for the Team Slide Source: Bradley J. Hilty Penn State Dairy Alliance (814) 865-4683 bhilty@psu.edu](https://reader036.vdocuments.mx/reader036/viewer/2022081514/56649d925503460f94a7904d/html5/thumbnails/25.jpg)
Past Profit Team Successes
2004 data with pilot farms.
![Page 26: Monitoring Data for the Team Slide Source: Bradley J. Hilty Penn State Dairy Alliance (814) 865-4683 bhilty@psu.edu](https://reader036.vdocuments.mx/reader036/viewer/2022081514/56649d925503460f94a7904d/html5/thumbnails/26.jpg)
Pennsylvania Dairy Profit Teams – Pilot Year of Project
Some Key Numbers (2004) Herd Size ~ 205 55-740 Milk per Cow ~ 20,000 12.5 K – 28
K ROA ~ 3.0 % -16.8 % - 23.8% ATR ~. 40 .18 - .93
Investment/Cow ~ $ 11,000 $4,700 - $20,000 OER ~ .80 .55 - 1.18 Cows/FTWE ~ 37 17 – 65 Operational COP ~ $13.80 $9.15 - $18.78
![Page 27: Monitoring Data for the Team Slide Source: Bradley J. Hilty Penn State Dairy Alliance (814) 865-4683 bhilty@psu.edu](https://reader036.vdocuments.mx/reader036/viewer/2022081514/56649d925503460f94a7904d/html5/thumbnails/27.jpg)
Questions?