Process Improvement
that won’t crunch your
budget
Expert Insight from
Griffin’s Foods Ltd
&
Kepner-Tregoe
Copyright © 2012 Kepner-Tregoe, Inc. All Rights Reserved.
1
Presentation Outline
• Business introduction
• Business Case
• Project Objectives
• KT’s Step Change Model
• Griffin’s Foods Step Change Journey
– Diagnose
– Implement
– Sustain
• Results Achieved
• Critical Success Factors
Copyright © 2012 Kepner-Tregoe, Inc. All Rights Reserved.
2
Business Introduction:
Kepner Tregoe
• Dedicated to the belief that “effective action follows clear
thinking”
• Configure our proprietary processes into application
models which deliver real and tangible results to our
clients
• Transfer our methodologies to clients working as part of
their team
• Operational Excellence practice includes:
• KT Step Change
• KT CAPA (Compliance)
• KT Shutdown & Turnaround (STO)
• KT WorkSafe
Copyright © 2012 Kepner-Tregoe, Inc. All Rights Reserved.
3
Business Introduction:
Griffin’s Foods Ltd
• John Griffin and his family started Griffin’s in
Nelson back in 1864
• Biscuit factory is located in Papakura, south of
Auckland.
• Chips, Snacks & Bar factory is located in Wiri,
South Auckland
• Annual turnover of more than NZ$300 million,
making us one of New Zealand’s largest
branded food companies.
• Operations employees across both sites totaling
460
• 6 Manufacturing Lines in Biscuits, 3 in Bars, 3
Snacks & 2 in Chips
• Pacific Equity Partners (PEP) purchased Griffin's
Foods Limited from Danone in 2006
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4
Business Case
• Site was not achieving expected overall
performance after facility upgrade.
• Struggling to meet market demand.
• Incurring large negative variances to the
standard.
• Previous success with KT Step Change
improvement projects.
Copyright © 2012 Kepner-Tregoe, Inc. All Rights Reserved.
5
Project Objectives
• Increase Operational Efficiency from X to Y,
through increased cycle time, reduced
waste and increased plant uptime.
• Analyze and modify operating systems to
better facilitate use of the KT Tools and
manufacturing excellence principles.
• Develop, Report and Visualize Key
Performance Indicators (KPI’s).
• Create a visible project reporting and
tracking model.
• Provide an opportunity for Griffin’s
personnel to lead a Step Change project
with KT providing ongoing support.
Copyright © 2012 Kepner-Tregoe, Inc. All Rights Reserved.
6
KT’s Step Change Model
DIAGNOSE
Complete
Detailed
Analysis
• Management
expectations established
• Business Process Flow
analysis completed
• Operational Data analysis
completed
• Human Performance
analysis completed
• Asset Performance
analysis completed
• Draft project list
developed
DIAGNOSE
Quantify &
Prioritize
Projects
• Quantify the financial
benefit of each project
• Ensure project link to
the company strategy
• Prioritize projects based
on criteria developed by
mgt
• Select projects the
project portfolio
• Determine ROI and
obtain mgt sign-off
IMPLEMENT
Train People in
Relevant Tools
& Techniques
Determine the most
appropriate tools required
for Project Implementation
and transfer capability:
• Lean Manufacturing
• Six Sigma
• Root Cause Analysis
• Decision Making
• Risk Assessment
• Project Management
IMPLEMENT
Establishing
Project Plans
& Monitoring
• Project objectives
finalized
• Project planning
completed
• Resource requirements
established
• Risk assessments
completed
• Reporting and
monitoring system
established
Copyright © 2012 Kepner-Tregoe, Inc. All Rights Reserved.
SUSTAIN
Achieve &
Sustain the
Right Results
• Coach in the use of
new tools
• Monitor project
performance
• Implement effective
control plans
• Review the system
effectiveness quarterly
• Continually identify
and launch new
projects
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KT’s Step Change Model
Diagnosis Phase
New View /
Continuous
Improvement Zone
Paradigm Shift
Resource
Constrained
Payback level $
Management Input Level
Step Change
Zone
Suggestion Box
Efforts – Diagnostics – Systems - Resources
Copyright © 2012 Kepner-Tregoe, Inc. All Rights Reserved.
8
KT’s Step Change Model
Diagnosis Phase
Use Decision Analysis to select the “Critical Few” improvement projects
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9
KT’s Step Change Model
Implement Phase
QUICK
CHANGEOVER
VISUAL
FACTORY
7 WASTES
5S
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10
KT’s Step Change Model
Implement Phase
Potential Problem Analysis (PPA)
A simple but powerful tool
Potential
Problem
Preventative Actions
(to stop/reduce cause)
Likely
Causes
Contingent Actions
(to limit impact)
Likely
Effects
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11
KT’s Step Change Model
Implement Phase
PLAN
MONITOR
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12
KT’s Step Change Model
Sustain Phase
Capability Transfer
To transfer capability in the
appropriate skill set to a
critical mass of employees to
drive the business
transformation.
Performance System Integration
Capability
Transfer
To ensure that the work environment
(expectations, measure,
tool/resources, consequences &
feedback) is conducive to
manufacturing excellence behaviors
and using the new skills.
Sustainable
Process
Integration
Business
Transformation
Process Integration
To ensure that there are clear
links between business
processes, improvement
objectives and expectations.
Performance System
Integration
Coaching On-the-Job
Coaching
On-the-Job
To ensure that time guidance is
available through content and
process experts: results
measured and appropriate
behavior is reinforced.
Copyright © 2012 Kepner-Tregoe, Inc. All Rights Reserved.
13
Step Change Journey
Diagnose Phase
•
•
•
•
•
Extensive Analysis completed over a 4 week
period.
Eight potential improvement projects identified
and presented to executive team.
Four projects recommended based on ability to
provide a step change in Operational Efficiency
(OE).
Project portfolio targeted a return on
investment of 5:1.
Five project managers selected and removed
from their normal duties:
– Shift Manager
– Engineer (2)
– Operator
– CI
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14
Step Change Journey
Diagnose Phase (cont.)
Improvement Projects Selected Included:
1.
2.
3.
4.
Identify and Implement "ONE BEST WAY
MANUFACTURING” to achieve consistent high
volume outputs of potato chips and
standardise operations across all shifts by July
2012.
Identify and Implement “ONE BEST WAY
PACKING” to achieve consistent high volume
outputs of saleable product and standardise
operations across all shifts by July 2012.
Embed sustainable, self driven
“MANUFACTURING EXCELLENCE” disciplines
on Chip line by July 2012.
Identify key reasons for and “REDUCE
MECHANICAL DOWNTIME” on key pieces of
equipment by July 2012.
Copyright © 2012 Kepner-Tregoe, Inc. All Rights Reserved.
15
Step Change Journey
Implementation Phase
• Capability development for all Project
Managers and key Chip Line stakeholders:
PSDM, Project Management, Lean
Manufacturing concepts.
• Robust project plans developed using a
“Learn & Do” approach.
Griffin's Chip Line Step Change Improvement Projects
As of
23/07/2012
Week 29 data:
OE%
Run Rate
B&R
72%
1112
2.8%
Projects
Target date
Forecast date
Overview:
2/07/2010
8/10/2010
31%
Project 1: Embed sustainable, self driven manufacturing disciplines on Lines 1 &4 by 10th October 2010
8/10/2010
8/10/2010
39%
Project 2: Implement a consistent approach on start-ups and changeovers on Toffee Pops Family, Squiggle Hokey Pokey Family,
Shrewsbury & ChitChat on Line 4 by Oct 8, 2010
8/10/2010
8/10/2010
22%
Current critical tasks
Date
Milestones
% complete
Due date
Operator shift handover meeting established
4/07/2010
KPI Boards established for all Lines
22/07/2010
Observe changeovers and collect data
9/08/2010
5S Disciplines on Line 4 established
26/07/2010
Initiate quick changeover project for chit chat
6/08/2010
Implementation of matrix at individual workstations for changeovers
Define roles and responsibilities for changeovers
Results to date:
Date
Issues to be resolved:
6/08/2010
27/08/2010
Date raised
PPA training started for other functional areas
2/08/2010
B&R Data project to be aligned
9/07/2010
5S champions trained and intro. to Lean Manufacturing completed
2/08/2010
Implementation of Quality visual standards
Changeover Matrix established for each work station
6/08/2010
Handover Start-Up and Changeover PPA responsibilities to production
6/08/2010
Awaiting Whiteboards for Lines 2 & 3
6/08/2010
16/07/2010
• Reporting system established including,
newsletters, monthly crew briefs and
weekly reviews with site management.
• Weekly review meeting with Executive
team established.
• All Chip Line Crew members introduced to
Potential Problem Analysis (PPA) and
Problem Analysis (PA) tools
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16
Step Change Journey
Implementation Phase (cont.)
Implementation
• Discipline for completing PPA’s on all
weekly start-ups and key product
changeovers.
• Changeover Matrix established to set
targets for all changeovers.
• Team leaders and team members trained
in how they and their teams can impact
OE.
• KPI board created.
• Daily team briefs reviewing performance
using KPI board.
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17
Step Change Journey
Implementation Phase (cont.) (cont.)
• Established optimal set points for each of
the critical machine variables within the
process.
• Established disciplined team leader shift
handover.
• Identified and removed time in motion
waste, through removing daily non-value
add operator tasks
• Celebration of wins in the form of crew
BBQ’s for breaking production records.
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18
Step Change Journey
Sustain Phase Journey
• Updating of whiteboards transitioned from
Project Resources to crews.
•
All Team Leaders and Senior Operators
trained in calculation of KPI’s.
• Facilitation of weekly start-up and
changeover PPAs transferred from Project
Resources to the line leadership.
• Development of internal KT Program Leaders
to provide ongoing training and monitoring
in the use of the KT tools.
• Development of Continuous Improvement
Technicians to internal KT Facilitators.
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19
Results Achieved
KGs/HR
WEEKLY THROUGHPUT
Throughput
Baseline
Target
6wk mov avg
1
2
3
4
5
6
7
8
9
10 11 12 13 15 16 17 18 19 20 21 22 23 24 25 27 28 29 30
WEEKS
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20
Results Summary
• 38% Improvement in
Production Rate (kg/hr )
• 37% Improvement in
Operational Performance
(OE)
Copyright © 2012 Kepner-Tregoe, Inc. All Rights Reserved.
Copyright © 2010 Griffin’s Foods Ltd. All Rights Reserved
21
Intangible Results Achieved
• Active crew participation in PPA’s for all
start-ups and changeovers.
• An increase in OE awareness by teams. A
desire to beat the minimum OE targets
and disappointment if OE targets are not
met.
• The ease at which the teams now handle
and respond to change.
• A questioning environment where the staff
wants more engagement and input to see
the department succeed.
• Team members have better understanding
on the impact of changeovers on OE.
• Operators are more proactive and
communicate better during Changeovers.
Copyright © 2012 Kepner-Tregoe, Inc. All Rights Reserved.
22
Critical Success Factors
•
•
•
•
•
•
•
•
Determine the optimal project mix using best in
class diagnostics.
Ensure improvement initiatives are aligned to
strategic objectives.
Focus on the critical few projects to provide a
step change in performance
Full-time commitment of internal Project
Managers based on skill set required for project
implementation.
Provide a common set of tools for issue
resolution and project implementation.
Establish an effective system for measuring,
monitoring and managing progress toward
target objectives.
Engineer the performance system to promote
sustainable behaviour.
Involvement of key stakeholders to assist with
“road block” removal.
Copyright © 2012 Kepner-Tregoe, Inc. All Rights Reserved.
23
What Questions Do You Have?
Thank
You
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