Performance Improvement

1

• Performance Improvement
• through
• Implementation of Lean Practices

David Simons Keivan Zokaei
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Chicago Slaughter Houses and Ford Production
System
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Lean Thinking

• The term lean was coined in 1990 by Womack,
  Jones and Roos
• It is rooted in Toyota Production System which
  changed Toyota from a small domestic producer to
  .
• Lean is single piece flow in contrast to mass
  production batch flow
• The tenet of lean is Waste elimination

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Lean Principles (Womack and Jones, 1996)

• Identify Value from Customers view point
• Organise products into Value stream families
• Map the Value stream, eliminating waste to create
  Flow
• Produce only at the Pull of customer
• Continuously improve towards Perfection

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Food Value Chain Analysis

• Commission Farming led to Food Chain Centre to
  improve collaboration
• Food Value Chain Analysis
• Lean Operational Focus
• Red meat, Dairy, Cereals, Horticulture
• Total 32 Chains
• Eight Red Meat Chains
• Three Year Study
• Beef, Lamb, Pork.
• Senior Industry Team collaboratively analyse
  whole chain

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Lean Philosophies

• Lean Policies
• Co-operation
• in supply chain
• Enhanced
• Employee
• participation
• Level production

• Waste Elimination
• Continuous incremental improvements
• Systemic Processual Approach,
• Focus on Consumer Value

Lean Practices Standardized work, Takt-time
Full version in paper
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Takt-time

• German word Takt refers to beat of music,
  precise interval of time, cycle, rhythm and the
  conductors baton.
• Takt-time is a tool used to communicate and
  synchronize the rate/pulse of the production
  process with the customer demand in order to
  prevent overproduction

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Implications of Producing to Takt-time

• Work Balance
• Operating a line to Takt-time is a prerequisite
  to effective work balance.
• In an ideal production line, the work content is
  distributed evenly between workstations in a way
  to meet the Takt-time

(Source VPMEP, 2004 )
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First Flow Production LineMagneto Assembly Line
1913
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Standardised Work

• Standards can be defined as the best way of doing
  a job (Imai, 1997).
• Work standards show what, where, when, who and
  how should tasks be carried out to ensure
  customer satisfaction

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Takt and standards in red meat cutting room
Full version in paper
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Traditional

• First operator manually sends the sections to the
  butchery hall and sets the pace of the line.
• Lift meat onto static board to butcher
• Belt speed set at a challenging speed
• No work balance
• Stops and starts
• 60 value adding 40 non-value adding
  (transport, wait, etc)
• Bad ergonomics no work standardisation

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Advanced
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Cutting Room Benefits
Operational Measure
Value Add Time
Current Performance
60
Achievable Performance with lean practices,
policies and philosophies
80
Total Potential Lean Saving
25
Variable costs incurred in this process stage
when loss occurs as percentage of total cost.
8.77
Potential saving to selling actor at stage in
chain
2.19
Contribution of Lean Practices only (without
policies or philosophies)
50
Potential saving to selling actor at stage in
chain for Lean Practices
1.10
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Whole Chain Lean Process Benefits

• Mortality
• Clean Animals
• Farm Giveaway
• Cutting Rooms
• Packing Lines
• In Store Waste
• Availability

Total 9
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Benefits to UK Red Meat

• Obvious Overseas Competition
• Scale and Costs threat to UK
• Quotas and Tariffs under pressure
• Subsidy Reform
• Lean Processes 93 exclusive to UK chains in
  pre-primal processing
• Many Farms/Processors in study operate on less
  than 3 in UK.

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• Thank You!
• David Simons Keivan Zokaei

Simonsdw_at_cardiff.ac.uk