Gorton's Seafood General Session.ppt - Lean Enterprise Institute
Jeffrey Whiteacre Lean Transformation Summit March 5, 2009
Orientation G Lean beginnings o o G Lean projects o o o G Eliminating waste and creating value Focus on the customer Manufacturing, supply chain, purchasing, distribution Suppliers and service providers Office Lean projects fit company goals o o o o Meeting g / exceeding g the needs of the customer Cost reduction benefits High cost environment, pressure on margins Highly skilled employee base 2
The focus must be on the customer, the ultimate driving force G What does the customer want? 3
L Lean matches t h th the b business i need d Original purpose, purpose G On-going needs, and G Sustaining to the future G 4
Achieving excellence within the G Supply chain, through G People, and G Technology Using leveraged learning networks 5
Gorton’s 6
Retail - USA 7
Retail - Canada 8
Food Service 9
Gorton’s: past, present, future 10
Key facts G G G G Established 1849 in Gloucester Massachusetts Innovation leader, first to develop a frozen convenience food, national shipments First to introduce lean thinking to the consumer f d industry foods i d t iin th the USA Mission to provide the best, highest quality frozen seafood items that surpass the consumers expectations o G G In terms of lean – providing what the customer wants Lean & G L Green Seafood sustainability 11
Agenda: Orientation (Lean projects fit company goals) Enterprise View (History of lean improvements) Leadership (Transformation through leaders) Knowledge (Enabling the improvements) Motivation (Demonstrated in a case study) Call to Action Q&A 12
The process – implementation strategy On-going History of Improvements G Prior programs o o G Productivity improvements Quality improvements On-going cultural change: The Lean path o Introduced in 1998 o Top down approach, employee involvement o Obtained knowledge Lean Thinking 13
The process – implementation strategy The Lean path (continued) o Offsite meeting with salary and wage employees l o o o Began to see waste S pplier in Supplier involvement ol ement Visited a lean plant Lean expert invited to tour the plant, questioned th currentt state the t t . o 14
History of process improvements ÅBefore After Æ 15
Lean Training G Expert training o o G G “Train the trainer” approach Lean Enterprise Institute Training grants / support Assignment of Value Stream Managers on each product line o o cultural lt l changes h ownership 16
Lean examples G Began in manufacturing o “If you have a process it can be mapped, if it can be mapped you can see the areas of waste, then you can kaizen and make improvements.” 17
Lean examples G Also used in: o o o o o o o o o Warehousing, g, inventoryy reduction Transportation, flow of materials Purchasing, meeting supply chain needs as Accounting, paperwork reduction Customer Service, quick response time to customers QA / R&D, product development improvements Engineering, OEM changes to match lean requirements Human resources resources, union participation / arbitration process Sales / Marketing, new product launch, point of difference 18
Agenda: Orientation (Lean projects fit company goals) Enterprise View (History of lean improvements) Leadership (Transformation through leaders) Knowledge (Enabling the improvements) Motivation (Demonstrated in a case study) Call to Action Q&A 19
Leadership G Lean involvement at all levels o Vice President, President Operations o Operations, p , Value Stream Manager g o o o (Lean champion) (Lean coordination throughout the enterprise) Directors within supply chain On-line managers Maintenance and wage g employees y (quick change-over's) 20
Lean involvement at all levels G Employees take control of lean initiatives o They work with process on a day day-to to day basis, experts in their area o Reliance on employees to own the change 21
Agenda: Orientation (Lean projects fit company goals) Enterprise View (History of lean improvements) Leadership (Transformation through leaders) Knowledge (Enabling the improvements) Motivation (Demonstrated in a case study) Call to Action Q&A 22
Knowledge – formal and “hands on” G G G Formal training Hands on kaizen events Lean built into day to day job functions o Questions asked: How does this process or activity meet the needs of the customer? Is this an action that the customer be willing to pay for? Does moving / transporting / pickup or putting down materials or information add value to process? the p 23
Agenda: Orientation (Lean projects fit company goals) Enterprise View (History of lean improvements) Leadership (Transformation through leaders) Knowledge (Enabling the improvements) Motivation (Demonstrated in a case study) Call to Action Q&A 24
Motivation G Examples of success o o o o Follow the flow of the value stream map Identified a product family Assigned a process manager as the “value value stream manager” Tracked the changes, demonstrated the i improvements t and d celebrated l b t d th the successes 25
VSM, case study: “How the supply chain was transformed transformed” 26
Supply Chain - September 1999 Orders 166000 Lbs./day Daily 27
Supply Chain - September 1999 Orders 166000 Lbs./day I 3825 Bl. 0 F Rm. I Temper 300 Bl. 2 EE’s 8166 Bl. CT 262 s I BR 2440 BA 800 C 25000 M 15680 20K Whse. 2 EE’s F 209676s BR 1215946s BA 581395s C 27275s M 211080s I BR 200 bags BA 400 “ C 10000 M 560 20 F Rm. I I 0 F Rm. 492 Bl. CT 226 s Daily CT 83 s I Tunnel 2 EE’s 1st flr. F 204 Bl. BR 120 bags BA 150 “ C 10000 CT 39 s M 2240 F 447637s BR 99667s BA 290697s C 32133s M 7538s F BR BA C M 38153s 59800s 109011s 32133s 30148s I F 204 Bl. BR 120 bags BA 150 “ C 10000 M 2240 F 9044s BR 36877s BA 49418s C 35640s M 9066s SS 614000s Process 21 EE EE’ss I Wrap 2 EE’s EE’ 298 s CT 2372 Uptm 66% CT 150s F 710953 s BR 1425755 BR 1425755s BA 1063986s C 160646s M 291297s SS 647465s 28
Supply Chain - September 1999 Pkg Fish Coating I I I 3 mos. Orders 6 mos. 3 mos. I 3825 Bl. 0 F Rm. 166000 Lbs./day I Temper 300 Bl. 2 EE’s 8166 Bl. CT 262 s I BR 2440 BA 800 C 25000 M 15680 20K Whse. 2 EE’s F 209676s BR 1215946s BA 581395s C 27275s M 211080s I BR 200 bags BA 400 “ C 10000 M 560 20 F Rm. I I 0 F Rm. 492 Bl. CT 226 s Daily CT 83 s I Tunnel 2 EE’s 1st flr. F 204 Bl. BR 120 bags BA 150 “ C 10000 CT 39 s M 2240 F 447637s BR 99667s BA 290697s C 32133s M 7538s F BR BA C M 38153s 59800s 109011s 32133s 30148s I F 204 Bl. BR 120 bags BA 150 “ C 10000 M 2240 F 9044s BR 36877s BA 49418s C 35640s M 9066s SS 614000s Process 21 EE EE’ss I Wrap 2 EE’s EE’ 298 s CT 2372 Uptm 66% CT 150s F 710953 s BR 1425755 BR 1425755s BA 1063986s C 160646s M 291297s SS 647465s 29
Supply Chain - September 1999 90/60/30/daily forecasts Pkg Fish Coating I I 3 mos. 6-mo. forecast I 90/60/30/daily forecasts Production Control MRP Orders 6 mos. 3 mos. 166000 Lbs./day Weekly schedule I 3825 Bl. 0 F Rm. I Temper 300 Bl. 2 EE’s 8166 Bl. CT 262 s I BR 2440 BA 800 C 25000 M 15680 20K Whse. 2 EE’s F 209676s BR 1215946s BA 581395s C 27275s M 211080s I BR 200 bags BA 400 “ C 10000 M 560 20 F Rm. I I 0 F Rm. 492 Bl. CT 226 s Daily CT 83 s I Tunnel 2 EE’s 1st flr. F 204 Bl. BR 120 bags BA 150 “ C 10000 CT 39 s M 2240 F 447637s BR 99667s BA 290697s C 32133s M 7538s F BR BA C M 38153s 59800s 109011s 32133s 30148s I F 204 Bl. BR 120 bags BA 150 “ C 10000 M 2240 F 9044s BR 36877s BA 49418s C 35640s M 9066s SS 614000s Process 21 EE EE’ss I Wrap 2 EE’s EE’ 298 s CT 2372 Uptm 66% CT 150s F 710953 s BR 1425755 BR 1425755s BA 1063986s C 160646s M 291297s SS 647465s 30
Supply Chain – September 1999 90/60/30/daily forecasts Pkg Fish Coating I 3 mos. 6-mo. forecast I I 90/60/30/daily forecasts Production Control MRP Orders 6 mos. 3 mos. 166000 Lbs./day Weekly schedule I 3825 Bl. 0 F Rm. Temper I 300 Bl. 2 EE’s 8166 Bl. CT 262 s I BR 2440 BA 800 C 25000 M 15680 20K Whse. 2 EE EE’ss F 209676s BR 1215946s BA 581395s BA C 27275s M 211080s F 226 s Dry 364 s I BR 200 bags BA 400 “ C 10000 M 560 20 F Rm. I 492 Bl. CT 226 s 262 s Daily CT 83 s I Tunnel 2 EE’s F 204 Bl. BR 120 bags BA 150 “ C 10000 M 2240 F 447637s BR 99667s BA 290697s BA C 32133s M 7538s 2500 s I 0 F Rm. 226 s F BR BA BA C M 1st flr. CT 39 s 38153s 59800s 109011s 32133s 30148s 83 s I F 204 Bl. BR 120 bags BA 150 “ C 10000 M 2240 Process 21 EE’s I Wrap 298 s 2 EE’s F 9044s CT 2372 CT 150s BR 36877s BA 49418s Uptm 66% C 35640s M 9066s 298 s SS 614000s 2372 s 150 s F 710953 s BR 1425755s BA 1063986s C 160646s 160646 M 291297s SS 647465s Lead Time 9534298 s (110 d days)) Proc. Time 61.4 minutes 31
Supply Chain – September 1999 90/60/30/daily forecasts Pkg Fish Coating I 3 mos. 6-mo. forecast I I 90/60/30/daily forecasts Production Control MRP Orders 6 mos. 3 mos. 166000 Lbs./day Weekly schedule I 3825 Bl. 0 F Rm. Temper I 300 Bl. 2 EE’s 8166 Bl. CT 262 s I BR 2440 BA 800 C 25000 M 15680 20K Whse. 2 EE EE’ss F 209676s BR 1215946s BA 581395s BA C 27275s M 211080s F 226 s Dry 364 s I BR 200 bags BA 400 “ C 10000 M 560 20 F Rm. I 492 Bl. CT 226 s 262 s Daily CT 83 s I Tunnel 2 EE’s F 204 Bl. BR 120 bags BA 150 “ C 10000 M 2240 F 447637s BR 99667s BA 290697s BA C 32133s M 7538s 2500 s I 0 F Rm. 226 s F BR BA BA C M 1st flr. CT 39 s 38153s 59800s 109011s 32133s 30148s 83 s I F 204 Bl. BR 120 bags BA 150 “ C 10000 M 2240 Process 21 EE’s I Wrap 298 s 2 EE’s F 9044s CT 2372 CT 150s BR 36877s BA 49418s Uptm 66% C 35640s M 9066s 298 s SS 614000s 2372 s 150 s F 710953 s BR 1425755s BA 1063986s C 160646s 160646 M 291297s SS 647465s Lead Time 9534298 s (110 d days)) Proc. Time 61.4 minutes 32
Things that changed Waste Streamlined Flow Ideal state Past Present Future Product to order Microwave B d / Batter Breader B tt Grow the business! Overproduction Waiting T Transportation t ti 33
Things that changed – phase 1 G G G G G Delivery of materials o Work with suppliers and OEM Eliminated make and hold K b system Kanban t to t trigger ti replenishment l i h t Flexible workforce to produce to customer requirements Reduction of inventory on hand 34
Miles of conveyors 35
36
37
Previous warehouse movement TRANSPORT BATCH HOLDING HOLDING ROOM 0 FREEZER 2nd FLOOR 1st FLOOR ELEVATOR PROCESSING TRANSPORT ELEVATOR 0 0 RECEIVING 30 MILLON LBS!! 38
Supply Chain – Phase 1 I Production Control Fish 6 mos. Orders I Pkg 166000 Lbs./day 3 Weeks I Coatings Daily Batter 3 days Breader 2 days Breader 2 Temper 4 EE’s 0 F Rm. I 600 Bl. 0 F Rm. CT 226 s CT 262 s F 150 Bl./ 25 min. I 20 K ft2 Whs. BR 2440 bags BA 800 bags CT 364 s C 25000 units M 15680 units M 15680 1296000 s 432000 s 226 s 86400 s 262 s BR 40 bags/hr. BA 25 bags/hr. C 3067 per hr. M 734 per hr. SS 16 per hr. TS 16 per hr. hr Process 19 EE EE’ss 2 EE EE’ss CT 2372 s Uptm 75% 3600 s 364 s Wrap 298 s 2372 s Lead Time 21 days Proc. Time 53.8 mins 39
Opportunity – Inventory & Direct Material Delivery 40
Direct material delivery from warehouse Solution: Make Delivery a part of the production line Transport 0 Receiving Direct Delivery Of Materials Processingg 41
Opportunity – Dry goods storage and handling 42
Supplier help to improve process flow 43
Breader & Batter handling – before El t Elevator Staging Production Line 2nd Floor 1st Floor Staging 44
Material Handling/Warehouse 45
Bulk batter and breader Silo Production Line Batter B d Breader Breader 46
47
The milk run 48
External material deliveries Oil and other Ingredient suppliers Folding carton & corrugate t suppliers Breader & Batter suppliers 49
Supplier consolidation of material delivery G Excess inventoryy eliminated leads to improvements o Over 80% less inventory on hand o Created lower working capital charges charges, and o Improved the inventory turns o Milk run, pkg supplier and oil supplier Oil Containers 20 Oil Containers 4 50
Internal material delivery, example G Milk runs, internal: o Line haulers pick up goods every 20 minutes, o No piles of inventory, only what the machine holds Issue – piles of inventory 51
Internal delivery – not everything is perfect! G Material movement o Clever cart! o Ask what does your customer want, it’s important in all part of the supply chain. 52
Opportunity: Carton vs. bag 53
Cartoning system Freezer Orientation Sealing C ll ti Collating Casingg Processing Cartoning Finished Goods 54
Bagging system Freezer Bagging Casing Processing Fi i h d Goods Finished G d 55
Line Material Handling Production Floor Super Market Visual Pull System Line 2 Masters Line 2 Cartons Line 1 Masters TUNNEL Line 1 Film 56
Material Handling/Warehouse G G G G G From 20,000 Square Feet to about 1600 Kanban Pull System Installed Supersacks vs. 50-lb Bags W d stays Wood t in i Warehouse W h Area A No Lift Trucks on Plant Floor 57
Line Material Handling G G G G Employees Pull Materials to Line Small Regular “Milk Small, Milk Run” Run Quantities Takes Pulse of Line H l Id Helps Identify/Solve tif /S l P Problems bl 58
Supply Chain – Phase 2 Production Control I Fish Orders 6 mos. I 166000 Lbs./day Pkg 3 Weeks I Batter 2 days Breader 8 hrs I Coatings Trailer & Silo Daily 0 F Rm. 10 K ft2 Whs. I Temper Process 9 EE’s Packing 7 EE’s Palletize Wrap 150 Bl. M 15680 units CT 624 s CT 25 s CT 1567 s Uptm 81 1500 s 1296000 s 624s CT 45 s CT 480 s 298 s 2117 s Lead Time 15 days Proc. Time 45.7 mins 59
Opportunity: Manual vs. automated palletizing Production P d ti Line Palletizer Stretchwrapper Freezer F Warehouse C ti Continuous Fl Flow 60
Packaging/Palletizing 61
Packaging/Palletizing G G G G G Packaging Next to Processing Flexible Packaging System Layout Much Better Communication E Ergonomics i G Greatly tl Improved I d In-Line Palletizing 62
Supplier support 63
Supply Chain – September 1999 90/60/30/daily forecasts Pkg Fish Coating I 3 mos. 6-mo. forecast I I 90/60/30/daily forecasts Production Control MRP Orders 6 mos. 3 mos. 166000 Lbs./day Weekly schedule I 3825 Bl. 0 F Rm. Temper I 300 Bl. 2 EE’s 8166 Bl. CT 262 s I BR 2440 BA 800 C 25000 M 15680 20K Whse. 2 EE EE’ss F 209676s BR 1215946s BA 581395s BA C 27275s M 211080s F 226 s Dry 364 s I BR 200 bags BA 400 “ C 10000 M 560 20 F Rm. I 492 Bl. CT 226 s 262 s Daily CT 83 s I Tunnel 2 EE’s F 204 Bl. BR 120 bags BA 150 “ C 10000 M 2240 F 447637s BR 99667s BA 290697s BA C 32133s M 7538s 2500 s I 0 F Rm. 226 s F BR BA BA C M 1st flr. CT 39 s 38153s 59800s 109011s 32133s 30148s 83 s I F 204 Bl. BR 120 bags BA 150 “ C 10000 M 2240 Process 21 EE’s I Wrap 298 s 2 EE’s F 9044s CT 2372 CT 150s BR 36877s BA 49418s Uptm 66% C 35640s M 9066s 298 s SS 614000s 2372 s 150 s F 710953 s BR 1425755s BA 1063986s C 160646s 160646 M 291297s SS 647465s Lead Time 9534298 s (110 d days)) Proc. Time 61.4 minutes 64
Supply Chain - Near Future State, Phase 3 Production Control I Fish Orders 6 mos. I Pkg 166000 Lbs./day 2 days I Americold I Trailer & Silo Daily Batter 1 days Breader 8 hrs Breader 8 I 10 K ft2 Whs. Process Temper 13 EE EE’ss Palletize and Wrap 150 Bl. M 7000 units CT 364 s Bags 0.25/hr. M 734 per hr. CT 25 s CT 2117 s Uptm 91% L d Ti Lead Time 2 days 3600 s 1 day 364 s 25 s 298 s 2117 s 3 Days Proc. Time 41.7 mins 65
VSM, case study: “How the supply chain was transformed transformed” 66
Agenda: Orientation (Lean projects fit company goals) Enterprise View (History of lean improvements) Leadership (Transformation through leaders) Knowledge (Enabling the improvements) Motivation (Demonstrated in a case study) Call to Action Q&A 67
Lean approach G G G G Leadership to support the lean initiatives Need to start on some “quick quick wins” wins and promote lean Continue to dream Encourage Lean Advancement Annual Operations Conference Show Lean Importance Reap Lean Dividends Recognize Lean 68
Result: real savings I I I I I I I I I Inventory Position Space requirements Reduced storage cost Warehouse consolidation W t elimination Waste li i ti – write it off ff Shorter runs Less time in warehouse Less movement of product Overall costs 69
Result: real savings I I I I I I Improved cycle time, turns Produce to order Product freshness – age Improved flexibility Employee skill base Si lifi d operations Simplified ti process 70
One piece flow – make to order 100 G A one p piece flow . o Make to order o Warehouse storage o Accounting buy-in o No new fixed assets! o Flexibility with the customer – meeting their needs! 90 80 70 P l Pre-lean 60 50 40 Today 30 20 Prelean Today 71
Improved changeover time 72
Product changeovers 1000 900 800 700 600 500 400 300 200 100 Before lean After lean 73
Change is Good G G G Increasing changeover frequency o Costing plant 300 300,000/year 000/year o Saving company 3,000,000/year Still 300 000 iis a llott off M Still 300,000 Money Needed to change the changeover methodology o o External E t lW Workk Key K to t Quicker Q i k Changes Ch Quicker Changeovers Cut Downtime 74
Change over team G Lessons learned o People (filmed and critiqued work) o External vs. internal work o Parallel P ll l W Work k o What can be done at the same time, in the future where will we be able to save steps? future, Best practices 75
Inventory reductions I t Invetory R Reduced d db by over 45% Other Inventory Finished Goods Packaging Before Lean With Lean 76
Lower carrying costs Carrying Costs Decreased by Over 25% Gorton's Bl Water Blue W t Before Lean Including Lean 77
Warehouse Storage Savings Storage Costs declined by over 42% Retail-USA Blue Water Before Lean With Lean 78
Why is lean important? G G G G G Provides the customer what they want Improves Supply Chain Significant Cost Savings Enables a way to “see see the waste” waste Remain Competitive Carry Cost Distribution Purchasing Projects 79
Constraining factors? G G G G Supply chain - continuous improvement Focus on improvement initiatives Constraining your business G Growth th opportunity t it 80
Agenda: Orientation (Lean projects fit company goals) Enterprise View (History of lean improvements) Leadership (Transformation through leaders) Knowledge (Enabling the improvements) Motivation (Demonstrated in a case study) Call to Action Q&A 81
Jeffrey Whiteacre Lean Transformation Summit March 5, 2009 82
(History of lean improvements) Leadership(Transformation through leaders) Knowledge (Enabling the improvements) Motivation (Demonstrated in a case study) Call to Action Q & A 12 The process The process -- implementation strategyimplementation strategy On-going History of Improvements Prior programs oProductivity improvements
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