at Bolthouse Farms
Amanda Cebell
Ruby Juarez
Will Altmiller
Asif Sohail
Bolthouse Farms
(History)
1915
Michigan
1972
Bakersfield
1990
Baby Carrots
2003
2007
Premium
Beverages
Salad Dressing
Source: www.bolthousefarms.com
2
Bolthouse Farms
Mission:
We are a market driven, fully integrated farming company. We are innovative in
agricultural and packaging technology. Within the parameters of our Corporate
Philosophy, our focus is to offer quality products at the lowest possible cost
through a “state of the art” plant, quality raw material and the maintenance of
trust and credibility with our customers, growers and employees.
Products:
Premium Beverages
Yogurt and Vinegar
Based Dressings
Fresh Carrots
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Pallets
Commonwealth Handling Equipment Pooling
• consumer goods, produce, meat, home
improvement, beverage, raw materials,
petro-chemical and automotive industries.
• Containers and pallets are not for sale.
•Rental price for pallets varies depending on contract
agreement.
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Step 1 of DMAIC - Define
 Pallet Tracking Issue:
 Over or Under-stated Inventory Levels
 No inventory maintained in the System
 Vendor (CHEP) Complaints
 Continuous Manual Adjustment
 Potential loss of pallets not reported
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CHEPs Flow at Bolthouse
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Step 2 of DMAIC - Measure
Measurements and Goals for Improvement
 The variance b/w In and Out
 Currently 2000 (approx) pallets per week
 500 pallets + or – per week is the goal
 Audit of Transfer/Customer Orders
 Less than 1% discrepancy b/w physically on rail car and
what the transfer order shows
 Physical count
 Less than 0.5% variance b/w physical count and
inventory level in the system.
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Step 3 of DMAIC - Analyze
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Step 3 of DMAIC – Analyze
(cont….)
Check Sheet
Week #
Inbound Pallets
Outbound Pallets
Variance
Percentage
1
26,865
29,079
-2,214
-8.24%
2
60,267
56,160
4,107
6.81%
3
50,880
45,576
5,304
10.42%
4
54,141
45,354
8,787
16.23%
5
52,239
49,575
2,664
5.10%
6
107,451
99,717
7,734
7.20%
7
63,501
40,956
22,545
35.50%
8
66,420
59,886
6,534
9.84%
9
111,660
119,418
-7,758
-6.95%
10
44,754
42,642
2,112
4.72%
11
46,383
39,132
7,251
15.63%
12
43,212
42,675
537
1.24%
13
41,454
40,959
495
1.19%
14
45,099
42,303
2,796
6.20%
15
47,100
37,389
9,711
20.62%
16
38,694
43,347
-4,653
-12.03%
17
56,757
44,469
12,288
21.65%
18
60,729
46,815
13,914
22.91%
19
51,258
42,696
8,562
16.70%
20
52,098
45,963
6,135
11.78%
21
53,856
43,062
10,794
20.04%
22
49,032
47,925
1,107
2.26%
23
66,960
48,639
18,321
27.36%
24
159,819
153,546
6,273
3.93%
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Step 3 of DMAIC – Analyze
(cont….)
Weekly Percentage Variance
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Step 4 of DMAIC – Improve
I. Goals for Improvement
1. Reduce Current Average Variance from 10% to 3%
2. Minimize the Financial Impact .
II. Alternatives:
1. New Software system implemented
Con: too costly current system is already implemented.
2. RFID tag all pallets– too costly
3. Efficient Accountability (See Following Fish Bone Diagram)
1. Process Auditing
2. Using the Existing ERP System
3. Physicality Measures
4. Regular Reconciliation
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Step 4 of DMAIC – Improve
(cont….)
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Step 5 of DMAIC – Control
 Continued Process Improvement:
 Monthly Reconciliation with CHEP
 Develop and Implement SOP:


Staff Training
Timeliness/ Inventorying Accountability Practices
 Annual SOP review and updating
 Control Charting
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Conclusion
 Define: The tracking of CHEP Pallets at Bolthouse Farms
 Measure:
 The Variance between in/out
 Audit of Transfers/Customer Orders
 Physical Count
 Analyze: Data & Process Flow of Inventory Management
 Improve:
 Reduce Variance
 Minimize Financial Impact-Utilize Technology
 Control:
 Monthly reconciliation of CHEP
 Staff Training
 Accountability
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