Improving Fleet Productivity
Through Quality and Lean Initiatives
This webcast will cover ...
• Overview on Lean,
• How to Use Various Lean Tools,
• How Lean Tools Have Been Used to Drive
Out Waste at Frito-Lay, and
• Question & Answer
Moderator
Dr. Gary Petty, President & CEO, National Private
Truck Council
Panelists
Tom Moore, CTP, Senior Vice President, National
Private Truck Council
Bob Rose, Editor – Transportation Management,
J. J. Keller & Associates, Inc.
Mari Roberts, CTP, Director, Network Optimization,
Frito-Lay, Inc.
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Dr. Gary Petty
President & CEO
National Private Truck Council
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Introduction
• Overview on Lean – Tom Moore
• How to Use Various Lean Tools – Bob Rose
• How Lean Tools Have Been Used to Drive
Out Waste at Frito-Lay – Mari Roberts
• Housekeeping issues:
Gary Petty
National Private
Truck Council
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Introduction and
Disclaimers
• This is an introductory course and is intended
Gary Petty
to highlight quality and lean methods. Time
National Private
constraints limit our ability to go in depth.
Truck Council
• We invite you to ask questions. We will answer them
throughout today’s webcast.
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Tom Moore, CTP
Senior Vice President
National Private Truck Council
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Private Fleet’s Role in
Supply Chain Optimization
U.S. Logistics Spend
as a Percentage of GDP
1980 - 2010
18
17
16
15
14
13
12
11
10
9
8
7
6
5
4
3
2
1
0
Transportation Spending
Inv entory C ary ing C osts
Total Logistics Bill
80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10
19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20 20 20
Council for Supply Chain Management Professionals, ACT Research Co., LLC: Copyright 2011
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Tom Moore
National Private
Truck Council
Definition of “Lean”
• Lean is a systematic approach to continuous
improvement that eliminates waste.
• Waste within a process is defined as any
activity that adds no value to the end product:




Waiting
Over-processing
Motion
Inventory




Defects
Un-utilized talent
Transportation
Processing Waste
• Key Principles
 Customer focus
 Value driven
 Continuous improvement
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Tom Moore
National Private
Truck Council
Plan, Do, Check, Act
Plan
Tom Moore
National Private
Truck Council
Do
NO
Check
YES
Act
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Define, Measure, Analyze,
Improve and Control
Tom Moore
National Private
Truck Council
Define
Measure
Analyze
Control
Improve
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Qualifying Opportunities
• Consumes too many resources (quality,
costs, timeliness, etc.)
• Its improvement is important to leadership
• Has clear owners and stakeholders
• Can be clearly defined
• Has performance metrics in place
• Is worth the time/effort needed to improve it
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Tom Moore
National Private
Truck Council
“Low Hanging Fruit” for
Waste Reduction
•
•
•
•
•
•
•
•
•
Communication
Dock wait time
Out-of-route miles
Backhauls
Drivers and MPG
Tractor and trailer utilization
Maintenance down time
Shipment staging
Organization and cleanliness
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Tom Moore
National Private
Truck Council
Benefits of Lean
•
•
•
•
•
•
•
Reduce lead times
Tom Moore
Improved on-time shipments
National Private
Truck Council
Decreased Work in Process
Better customer responsiveness and flexibility
Employee empowerment
Better resource management
Ultimately, a better bottom line!
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Mari Roberts, CTP
Director, Network Optimization
Frito-Lay, Inc.
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Frito-Lay Fleet Operations
• 28 Traffic Centers
• Equipment
 1,040 Tractors
 3,800 Trailers
• People
 115 Managers
 195 Admin
 1,550 Drivers (5.8% Turnover – includes retirees)
• Network




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Hauls 86% of Frito-Lay Volume
Delivers 630,000,000 Cases/Year
PF Drives 130,000,000 Miles/Year
CC Miles 30,000,000/Year
Generates millions of Inbound & Backhaul Revenue/Year
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Mari Roberts
Frito-Lay
Frito-Lay Distribution
Network
Mari Roberts
Frito-Lay
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Frito-Lay Lean Staff
Mari Roberts
Frito-Lay
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Frito-Lay Lean Six Sigma
Lean
Six Sigma
Speed + Waste +
Implicit Approach
Quality, Cost +
Explicit Approach
• Goal – Reduce waste
and increase process
speed
• Focus – Bias for
action/ Utilize existing,
proven Lean Tools
• Method – Kaizen
events, Value Stream
Mapping
• Goal – Improve
performance on Critical
Customer Requirements
• Focus – Use repeatable
DMAIC approach for
sustained results
• Method –Focus on projects,
performance improvement a
key leadership activity
Lean Speed Enables
Six Sigma Quality
Six Sigma Quality Enables
Lean Speed
(Faster Cycles of
Experimentation/Learning)
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(Fewer Defects Means
Less Rework)
Mari Roberts
Frito-Lay
Bob Rose
Editor, Transportation Management
J. J. Keller & Associates, Inc.
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Lean Methods
• Value Stream Mapping
• 5 Whys
• Process Walks (aka Gemba Walks)
• 5S
• Fishbone Diagrams
• Smart Automation (aka Jidoka)
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Bob Rose
J. J. Keller &
Associates, Inc.
Value Stream Mapping
• Value stream mapping is a lean technique used to
analyze and design the flow of materials and
information required to bring a product or service to a
consumer.
• Steps:
Bob Rose
J. J. Keller &
Associates, Inc.
 Identify the target product.
 Draw a current state value stream map, which shows the current
steps, delays, and information flows required to deliver the target
product.
 Assess the current state value stream map in terms of creating flow
by eliminating waste.
 Draw a future state value stream map. Work toward the future
state condition.
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Frito-Lay Example:
Hostler Efficiency
Mari Roberts
Frito-Lay
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5 Whys
• The 5 Whys is a question-asking technique used to
explore the cause-and-effect relationships underlying
a particular problem.
• Problem: The vehicle will not start
1.
2.
3.
4.
5.
6.
Bob Rose
J. J. Keller &
Associates, Inc.
Why? - The battery is dead.
Why? - The alternator is not functioning.
Why? - The alternator belt has broken.
Why? - The alternator belt was well beyond its useful service life and not replaced.
Why? - The vehicle was not maintained according to the recommended service
schedule.
Why? - Replacement parts are not available because of the extreme age of the vehicle.
• Solution: Start maintaining the vehicle according to the
recommended service schedule.
• Solution: Purchase a different vehicle that is maintainable.
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Process Walks
(aka Gemba Walks)
• A method of carefully observing a process to
find where waste exists
• Process:
1.
2.
3.
4.
5.
Notify those being observed
Watch and try to understand the process
Envision what should happen in perfect world
Establish awareness of what is actually happening
Analyze possible root causes for deviation
• Examples:
 Driver speed management, shifting and fuel efficiency
 Driver vehicle inspections and maintenance flow
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Bob Rose
J. J. Keller &
Associates, Inc.
Frito-Lay Example:
“Traffic Center of the Future"
• Methods applied: Process Walks, 5 Whys
• Designed optimal work around internal and
external customer requirements to develop
Transportation Strategy
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Mari Roberts
Frito-Lay
5S
• The 5Ss are:



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Sort
Straighten
Sweep
Standardize
Sustain
Bob Rose
J. J. Keller &
Associates, Inc.
• Examples:
 Truck cargo securement supplies and material handling
equipment
 In-cab truck repair supply kits
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Frito-Lay Example:
Garage/Parts Storage
• Methods applied: 5S
• Incorporated 5S into our Maintenance
Garages and Parts Storage areas
• Enables Mechanics to work safely and more
efficiently
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Mari Roberts
Frito-Lay
Fishbone Diagram
• Visual representation of the causes of a
specific event where “bone” categories of
process inputs represent possible causes:

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


People
Methods
Machines
Materials
Measurements
Environment
• Examples:
 Inventory loss/damage
 Out-of-route miles
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Bob Rose
J. J. Keller &
Associates, Inc.
Frito-Lay Example:
Fuel Efficiency
Measurements
Driver MPG Performance
Maintenance Data
Collection Ability
Qualcom Data Intergrity
MPG by Tractor/Trip
No Std/Potential set
No R&R Program for MPG
Knowing & Using Baseline Data
Actual miles vs Planned
How long regen runs
Additives for bulk tanks
Cold dense air
Wind
Snow, Sleet, ice
Wet Roads
Heat
Altitude
Route
Machine (Tractor/Trailer
Tires
Poor Aerodynamics
Engine Performance
Old Tractors
Load Weight
Bridge setting
Engine Parameters
Brakes
DPF Regen
Transmission Operation
Alignment
Tandem vs Single Axle
Sleeper vs Day Cab
Driving Habits
Competing metrics (Density
Out of Route
Rapid Accel/Decel
per gallon burned vs MPG)
Shifting Patterns
Right Tractor, RightTrip
Driver Experience
Timely PM’s
Mechanic Experience
PM Methods
Idling
Tire Pressure
Smith Training
Driver Motivation
Tractor Adjustments
Speeding
Nitrogen vs Auto Inflation
Right Truck on Right Trip
How
tire pressure is checked
Scheduling @ Right Time
VCR Method
Recognition
Mgmnt Engagement
Road Surface
Zig Zag Runs
Scheduling (Routes etc)
Driver Habits
Construction
Eat & Sleep Options
High Altitude
Facility Location (Off Freeway)
Traffic
Mother Nature
Personnel
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Methods
Mari Roberts
Frito-Lay
Poor MPG
Smart Automation
(aka Jidoka)
• Automation with a human touch; machine
with elements of human decision making
• Examples:




Bob Rose
J. J. Keller &
Associates, Inc.
Geo-fencing and remote shut down
Ignition controls for HOS and pre-trip inspections
Anti-roll over and collision avoidance on trucks
Dispatch and trip planning that checks hours available,
weather, etc.
 Automatic shut-off on tanker pump
 Autonomous powered trucks in warehouse with
radar/laser guidance
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Frito-Lay Example:
Fuel Efficiency
•
•
•
•
Methods applied: Kaizen, Smart Automation
Kaizen identified waste
Tractor speed governed at 65 mph
Smart automation shuts down tractor after 5
minutes of idling
• Savings: Reduced idling from >20% to <5%;
$100,000 savings
No
Idling
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Mari Roberts
Frito-Lay
Frito-Lay Example:
Dynamic Direct To
• Methods applied: Smart Automation, DMAIC
• Cross functional team identified
opportunities with process and systems to
reduce supply chain cost
• Savings: $1 million
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Mari Roberts
Frito-Lay
Question & Answer
Gary Petty
National Private
Truck Council
Tom Moore
National Private
Truck Council
Bob Rose
J. J. Keller &
Associates, Inc.
Please submit questions to
“Q&A” using the Q&A tool
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Mari Roberts
Frito-Lay
Closing Remarks
• Checkout the archive of past topics at:
http://www.jjkeller.com/nptcinfo
 PowerPoint slides and recording up in 1 week
• Topics for 2012:
Gary Petty
National Private
Truck Council
 October 3 – Effective Motor Carrier Safety Training Programs
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