Kraft Foods Internship
Report Out 2009
Presented By:
Carlos Miravite
September 3, 2009
Ontario Mixing Center
General Information
Ontario Branch
Jeffrey Warchuck
MCL
Fiona Tang
LS
Tracy Booker
LA
Drivers
Warehouse
Tanya Raasch
LC
• Kraft Foods
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–
–
–
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Founded in 1903
2nd largest food company
$42 billion revenue stream
98,000 employees
168 manufacturing and
processing facilities
– CEO Irene Rosenfield
Roughly 100,000 sq. ft
556 customers
40 employees
3 lost time incidents
7 recordable
Heaviest day for picking are
Monday, Thursday, Friday
On a heavy day, volume can
range from 15,000 – 20,000
units
On a light day, volume can range
from 6,000 – 9,000 units
WUPH for the month of August
was 136
DUPH for the month of August
was 84
Internship Quick Recap
• Worker Productivity – Recording Throw Rates
– Among the warehouse employees who is throwing the most, who is
throwing the least?
– It is a marker of employee productivity defined by the number of cases
thrown per hour.
• Re-launching Pallet Incentive Program
– Comparing July vs. August, are we sending more pallets out rather than
bringing in?
– Re-launching the program can there be a significant improvement from last
month’s results?
• Cart Retrieval Program
– With the loss of carts, management along with sales, had to develop a way
to strategically deploy carts and secure our assets.
– A daily count of carts coming inbound was kept for approximately 10 days.
– As of today, all loads are being palletized, as the issue of carts are withheld.
Internship Quick Recap
• Q3 Saturday Inventory – 6AM – 6PM
– Within that week, numerous cycle counts were done to ensure inventory
accuracy and accountability.
– Using KWIC, line negative were cleared out, along with any remaining
shipments.
– With Tracy taking the lead, short code dated items were processed and
moved to liquidation and donation.
– As a result, the branch came up short in the amount of a -$523.
• Branch to Branch Transfers
– At one point there was a major spike in branch to branch transfers in one
week.
– Was inventory forecasted correctly to fulfill demand so that branches were
not short or over on product?
– Part of this process included processing the shipping manifest and bill of
lading via KWIC.
• Driver Ride Along
– Andy – 16 hour day – 14 stops – approximately 4 hours behind schedule!
– EZ
– Murray
Internship Quick Recap
• Mixing Center – Kraft in conjunction with TLC
– There are 7 mixing centers in the United States; Ontario being one of them.
– Volume, on average is much greater than Ontario’s DSD. On a heavy day
about 60,000 units are pushed compared to our 15,000 – 20,000 units.
– Work shifts are comprised of 3 shifts per day, with a Saturday and Sunday;
Ontario only has one shift, 5 days a week.
– Ontario’s inventory is strictly cookies and crackers; on the other hand the
mixing center holds thousands of SKUs ranging from all types from the
Kraft Foods BU network.
– The Kraft Foods mixing center management team is composed of Joie and
her 5 person team.
– Dave, Thomas, Anita, Cornell, and Isabella are in charge of dry and cold
product, vehicle sizing, and site planning (SLP).
– In conjunction with Kraft, the TLC team acts as a 3rd party logistics
member; also with similar responsibilities.
– There is also a refrigerated mixing center that strictly handles cold product
such as hot dogs.
Throw Rates – July vs. August
• A throw rate can be defined as a marker of employee productivity
presented by number of cases thrown per hour.
• My daily duty was to record throw rates and determine what will
become the status quo for throwing.
• I discovered that a good, yet average number of cases thrown
ranges among the 1000s.
• Top performer for the month of August was David Trovao; with
Johnnie Ritchie not too far behind.
Throw Rates - July Distribution
Throw Rates - August Distribution
1400
1400
1159
1200
1325
1200
1035
1000
854
Rate
1045
915
847
576
600
965
828
734
800
952
922
800
Rate
1000
800
680
731
582
600
385
400
400
200
200
0
0
0
0
Au
Bahler
Elston
Garcia
Guiterrez
Nelson
Thrower
Prado
Ritchie
Thomas
Trovao
Au
Bahler
Elston
Garcia
Guiterrez
Nelson
Thrower
Prado
Ritchie
Thomas
Trovao
Pallet Incentive Program – July vs. August
•
•
•
•
•
Following up the project first created by Fiona, I was in charge in re-launching the pallet
incentive program amongst the drivers.
The goal was to reduce the cost of pallet spending, which was $3093 in the month of
August. The estimated budget was $1045. The cost per pallet is $3.80.
July, net total resulted in a -233 pallets returned; with less than one pallet being brought
back per route per driver.
August, although still in the negative, a significant improvement was seen as news of the
program built steam.
There is still a lot of room for improvement.
Pallet Incentive Program Recap
Month
July
August
Total Inbound
1560
1839
Total Outbound
1793
1932
Net Total
-233
-93
And the winners are…
Total %
ARREDONDO
CASTILLO
WRIGHT
JOSEY
PREVOST
HOUCHENS
ZELLNER
ANDERSON
MURRAY
MAGANA
WEST
SHIN
THOMPSON
HOYT
QUIROZ
PETAIA
NELSON
DOUGLAS
THOMAS
DeARMAN
EVANS
LOPEZ
PEREZ
SEWELL
WATTERS
600.00%
314.29%
241.92%
191.46%
138.98%
100.00%
98.78%
86.88%
71.35%
70.00%
65.89%
64.29%
56.79%
52.20%
50.00%
30.77%
9.62%
7.02%
2.44%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
Total Net
WRIGHT
JOSEY
PREVOST
CASTILLO
ARREDONDO
HOUCHENS
LOPEZ
QUIROZ
SEWELL
ZELLNER
DeARMAN
WATTERS
PEREZ
EVANS
PETAIA
MAGANA
ANDERSON
THOMPSON
THOMAS
DOUGLAS
MURRAY
SHIN
WEST
HOYT
NELSON
326
76
24
16
6
1
0
0
0
-2
-4
-5
-5
-6
-8
-14
-20
-34
-39
-52
-54
-59
-72
-75
-93
Cart Retrieval Program
• The loss of carts forced management to rethink a strategic deployment plan
to ensure our assets were secure.
• A 10-day record keeping program was put into place, in which Tracy and I
kept a daily log on inbound carts.
• To expand on the program, I was able to create specialized driver memos by
examining sales teams and their territories. Drivers would not deliver carts
to these stores as instructed by Fiona.
• As a result, of the 2800 carts in inventory, only 391 carts remain.
Date
07/09/09
07/13/09
07/14/09
07/15/09
07/16/09
07/17/09
07/18/09
07/20/09
07/21/09
07/23/09
07/27/09
07/28/09
07/29/09
07/30/09
08/01/09
08/03/09
08/04/09
08/05/09
08/06/09
08/07/09
Total:
Total Carts Recorded
16
22
5
27
27
17
17
26
7
23
24
9
37
37
18
40
9
10
12
8
391
The Biggest Loser Competition
Forget those cookies, crackers, and anything associated with junk food, the Kraft
Foods Ontario branch will be incorporating a 3-month long weight loss program
that takes after the popular television show.
To promote health and safety, beginning Friday, September 4, 2009, drivers and
employees have the opportunity to participate and begin the road to becoming
healthier.
• Rules of the Competition
– Weigh Ins must be in by Friday
September 4, 2009 to be considered in
the program
– The person with the highest
percentage of weight loss is declared
the winner
– “Winner Takes All”
– Prize: $50 Gift Card
Strengths, Weakness, Opportunities, Threats
Strengths
Weaknesses
A young, new management team in Jeff, Fiona, and Tracy;
intelligent group of people with great ideas that can help make
Ontario one of the top branches in the West area.
Driver and warehouse call-offs, including overtime occurrences.
Strong, young warehouse crew and foreman; core group that
understands what needs to get done to accomplish WUPH.
Branch to branch transfers – a spike leads me to believe that inventory
forecasting may not be observing the shortage or overages branches
experience.
Experienced and seasoned drivers that know their routes and
trucks.
Wholesale migration affects employee morale – low volume results in
labor getting cut and employees being bumped down.
Carts & Pallets – an expense that can be reduced if the assets are secure
and accounted for.
Opportunities
Threats
Carts & Pallets – a good opportunity to save on expenses that can
become redundant; keeping in line with the pallet incentive and
deploying carts strategically can completely reduce the cost.
Time loss incidents/accidents – proper training in safety and
procedure can reduce the threat of large medical expenses.
Conveyor and pick line – the $120,000 investment in reconfiguring the
lines can decrease work time by 6-8 hours, along with increasing
productivity and improving on prep time.
San Diego business – the possibility of their business can help morale
along with branch rankings; talks of expanding the yard can demonstrate
the potential Ontario has in handling more volume.
Sustainability – finding ways to improve the idea of going green can
help reduce costs of utilities, such as electricity.
Wholesale migration – finding a solution to increase our volume;
can San Diego be the answer?
Carts & Pallets – can Ontario secure its assets by returning carts
and pallets to reduce the cost in this bucket.
Concluding Thoughts
• My Goal
– Was to learn the Kraft Food DSD network; how it works; what
needs to be done; how to successfully service our customers
each day.
• Conclusion
– A great 3-month learning experience in which I was able to
accomplish my goal entering the internship.
– A warehouse and driver community that are more than
welcoming; helpful and wise.
– Management team that has potential to do great things with a
up and coming branch in Ontario.
– Overall a great company to work for! The future is bright!
Thank You For the Opportunity!