Mark Parker
Background
Project Objectives
Remove waste
Reduce costs
Increase profit
Free up capacity
Drive Sustainability
EU
United States
China
India
Algeria, Egypt
Brazil
10.0%
20.2%
25.0%
44.6%
30.5%
26.4%
(Source: OECD)
www.dairyuk.org/component/option,com_docman/task.../Itemid,308/
On the supply side dairy farming will present an opportunity for many
regions around the world
Realistically it will be difficult for low cost countries to produce in line with
forecast increases in demand.
Consensus opinion that demand will outstrip supply in the medium term.
Source: Investment Prospects for British Farmers September 2009
Waste Definition
Waste Definition
Method
Mapping :
Select and Map a product line/process
Observe & analyse
Quantify waste
Identify opportunities for improvement
Agree improvement plan
Implementation:
Implement plan
Remove waste
Reduce cost
Free Up Capacity
Kaizen Definition
Kaizen (Japanese for "improvement")
A Japanese philosophy that focuses on continuous improvement
Challenges
Gain buy-in at all levels
Drive from the top
Free up people to train
Fire fighting break the routine
Clashes with short term priorities
Operator discipline recording job times
Challenge the accuracy of data
Keep it simple
Sustaining the gain
Types of Waste
NW Bakery
Scrap Bakery Co.
the raw material cost of the scrap.
Actual Cost of Scrap per year =
235,000 (10%)
NW Bakery
NW Bakery
24,700
30,160
147,260
NW Bakery
Giveaway Bakery Co.
the cost of raw material which has been given away for free.
Actual Cost of Giveaway per year =
819,500 (19%)
500k Reduce stock through the supply chain and reduce external
warehousing costs
Implementation Plan
Kaizen Intervention 1 - Not Right First Time
Reduce rejects, scrap, rework
Kaizen Intervention 2 - Setup Reduction
Reduce Downtime
Kaizen Intervention 3 - 5S in the workplace
Target the ingredient weighing area.
Kaizen Intervention 4 - Process Measurement and Data Capture
Need to improve data capture as this is fundamental to any Lean
implementation.
Outputs
2010
Opportunities Identified
(Cost Savings Signed Off
Additional Business Won
Total of 202 Jobs Saved)
21,000,000
5,320,000
4,000,000
2011
Opportunities Identified
TOTAL
14,000,000
35,000,000
Benefits of Lean
Benefits of Lean