Making Your Farm
Business More Efficient
Through Lean Thinking
Principles
Presented By: Jim Cooper & Avery Murphy
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Why Lean Thinking?
 The ability to adapt to the mindset as an
early adopter should provide a
competitive advantage to the farm
operation, as your operation can act as a
partner in improving the entire chain from
field to table
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What is Lean Thinking?
Lean Thinking is a systematic approach
to identifying and eliminating waste while
focusing on adding value to your internal
and external customers.
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What is Lean Thinking?
 Lean thinking describes an approach to
business that aims to deliver more and more
with less and less .

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
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Less human effort,
Less equipment,
Less time
Less space
 Lean thinking involves identifying and
eliminating all forms of waste in supply chains
and focusing instead on what delivers value for
consumers.
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The Lean Drivers
• Lean Thinking
• Employee Involvement
People
Customer
Success
Process
• Flow
• Elimination of Waste
Technology
• Tools to support
people and process
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Defining Value
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Defining Waste
Waste is anything that consumes time or
resources but does not add value to the
product or service, as viewed from the
perspective of the customer.
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Wastes
Waiting
-Long
period of inactivity for people,
information, machinery, or materials
 Procrastination
 Calls not returned
 Waiting for clarification or approval from
the “ Boss”
 No inventory control
Unnecessary Motion
-Extra steps taken by employees and
equipment to accommodate inefficient
process layout, defects, reprocessing,
overproduction or excess inventory
 Walking around an unorganized shop
 Location of office
 Employee turnover
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Wastes (con’t)
Defects
–Frequent errors in paperwork, product
resulting in scrap, rework or repair
 Confusion due to poor communication
 Data entry error (age verification, pedigree
registration, Agri-Stability)
 Spoiled product
Inappropriate Processing
– Using the wrong sets of tools,
procedures or systems
 Entering data several times
 Improper equipment for the job
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Wastes (con’t)
Overproduction
– Producing more/sooner than the
internal or external customer needs
 Mixing of products that can expire
 Excessive storage of products until the
customer needs them
Unnecessary Inventory
– Excessive storage and delay of
information or products.
 Wrong materials
 Sales on raw materials
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Wastes (con’t)
Transportation
– Excessive movement of people,
information, or materials. Handling
damage could be incurred.
 Not finishing jobs
 Poor planning
-Untapped Human Capital
 Skill sets of employees
 Part-time or contract hire for unwanted or highly
skilled task
 Teamwork
-Energy
 Power waste
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5S
Ford Motor Co.
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Lean Thinking for
Producers in Alberta
 5 primary producers from both crop and
livestock production have taken
advantage of program funding.
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Potential Funding for
Producers in Alberta
 Growing Forward Productivity
Improvement Project for Producers
 Phase 1: Introductory Educational session
 Introducing and developing the producer’s
education in Lean principles.
 Cost: 100% covered by AB Agriculture and Rural
Development (ARD)
 Phase 2: In-depth Training Session
 Identification of opportunities for Key
Improvement Projects and actions for the
company to pursue a Lean culture and continual
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process improvement.
Is this for my Operation?
 Primary producer with an Alberta crop or
livestock operation with a market value of
production exceeding $10,000 annually;
 Willing to share information with Alberta
Agriculture and Rural Development (ARD) staff
and consultants;
 Motivated to implement change, provide
resources and commit time;
 Part of an existing value chain (preferably)
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Questions?
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