shamrock foods company continuous improvement journey...3 process maturity management process...
TRANSCRIPT
PresenterKazue Balint
Sr. Master Black Belt and Lean practitioner
with Shamrock Foods Company
Certified Scrum Master
Former Arizona Certified Public Accountant
and Series 27 Financial and Operational
Principal
Over 15 years’ experience in business process
improvement in the Finance, Food Delivery
and Manufacturing industries.
4 years at Shamrock Foods Company
Shamrock Foods Company
Founded in 1922 and still family-owned, Shamrock Foods
Company specializes in the manufacturing and distribution
of quality foods and food-related products. The company
has become a symbol of integrity in households and
businesses. Shamrock continues serving customers
through a family of companies, including Shamrock Farms,
the largest dairy in the Southwest, and Shamrock Foods,
the seventh-largest U.S. foodservice distributer.
Broadline Warehouse
Systems Warehouse
Hybrid Warehouse
Cash N' Carry
Gold Canyon Meat Co
& Seafood
Jensen Foods
Toll Roast
Dairy
Markon
Presentation objectives
How can a small BPI team add value to company that spans across the
Foodservice supply chain from manufacturing, distribution to retail?
Share our struggle to find the best direction to address the existing needs:
‒ Support company’s strategic initiatives (Top down)
‒ Respond to calls for help to resolve process failure or incidents
‒ Empower employees with process improvement capability
‒ Move improvement culture at Shamrock forward through employee
engagement (Bottom up)
Share our success stories and next steps
Foodservice Supply Chain High Level
Flow
Manufacture /
Supplier
Item Cases Pallets IB Transportation Distribution Center Cases OB Transportation Restaurant
OperatorsPlate
Distribution Center
Full
Direct ship
Full
To be successful, every part of the process must work in concert, like a 1st class symphony
Process is complex, including manual handling, multiple hand offs with many opportunities for error
Constraints – Order quantity, lead time, shelf life, inventory cost vs. stock outs
Driver shortage, rising transportation costs
Consumer expectations – more variety more flexibility; delivered on time
Not difficult to find opportunity for improvements!
Business Process Improvement (BPI) History and Challenges
Automated
Warehouse
Accounting System
Revamp
GE SIX
SIGMA
Training
Qualtec
Lean, 5S,
TOC training
1995 2000 2005 2010 2015 2020
First installation of:
• BPI team
• CIC focus on bottom up
improvement effort
• BPI focused on top
down projects only, CIC
died out
• BPI provided financial
results but sub-
optimized due to lack of
alignment with Business
Reinstallation of:
• CIC
• Path to GB added
• BPI works closely with
Business as consultants
training the belts through
their projects
Issues:
Methodologies such as DMAIC are a proven and
effective approach, however, it takes time to complete,
one quarter or longer
It also requires experienced belts who is often difficult
to find
Workers must fix problems here and now
Fixing activities through trial and error often result in
temporary fix’s and accumulating unresolved problems
Solutions:
Revive the grass root problem solving and
learning community Continuous Improvement
Council (CIC)
Increase number of Green Belts (GB’s)
Develop Black Belts (BB’s) inside and outside of
BPI
BPI to provide training, consulting to the business
and support their GB and BB successfully
complete the projects (Center of Excellence
Concept)
BPI Center of Excellence (CoE)
In recent years BPI projects have driven business transformation resulting in increased operational efficiency, process automation, performance monitoring enhancements and structural re-design
The adoption of methodological business process improvement is partly hindered by the fact that BPI as a discipline lacks a natural home
Multiple BPI initiatives conducted in functional silos, often become costly piecemeal efforts leading to a limited economy of scale, synergy, credibility and a diminished return on BPI investment
Sporadic installment of grass root process improvement efforts and Green Belt training should be standardized and managed by the CoE.
Adoption of a CoE will lead to an effective process culture that provides consistent value to the organization
7
A Framework for BPI Center of Excellence8
Systems Architecture Sales / Marketing Operations Manufacturing Data Analytics
Alignment with Business Teams and IT Portfolio, Architecture and Data Analytics team
Strategy
input
Demand
analysis
Select projects
& services
Service
monitoring
Service
execution
Service
planningResults
evaluation
Dissemination
of culture
BPI Project Management Process
25%
25%
50%
BPI Service Catalogue
Process Archtecture Management Training Consutancy
Explanation of BPI Service Catalogue 9
No Name Description
1 Process architecture / repository
development & maintenance
Definition and/or updating of the organization's value chain, process models and
business process architecture.
2 Process benchmarking & innovation Benchmarking and dissemination of internal and external best practices related to
process execution.
3 Process maturity management Process maturity evaluation, based on existing maturity models.
4 Process improvement training /
education
Employees' training and education on process improvement concepts, methods and
tools (CIC, GB classes).
5 Process documentation Creation and/or updating of procedures and manuals (Playbook, SOP, Check list) that
feed into processes models and can serve as a basis for work execution.
6 As is Process model analysis Modeling and/or updating of current process. Models usually include activities and
events, responsibilities, related systems, documents and improvement opportunities.
7 To be Process improvement (Lean /
Kaizen / Six Sigma Project)
Redesign of existing processes based on the analysis of improvement opportunities
and prioritization of identified solutions. Can also mean the design of a new process.
8 Process change management Definition of an action plan to incorporate improvements in existing processes.
Tracking of action plan's status, intermediate results and difficulties.
9 Process / performance measurement Definition of a measurement, monitoring process performance (time study, value
stream). Establishment and tracking of actions to improve performance.
10 Process compliance Periodic process checking (Process audit). Verification of the adherence of the
process models to reality.
10
BPI CoE
Sr.
MBB
Operations Manufacturing
Sales & Marketing
BB
BB
Non
BPI BBNon
BPI BB
GB
Non
BPI GB
Non
BPI GB
Non
BPI GB
Non
BPI GB
Non
BPI GB
Analyst
CIC
An Operating Concept for BPI CoE
Build deep bench of GB/BB expertise inside and outside BPI (see next page)
A BPI CoE ensures that process improvement results are delivered consistently through standard
processes and by competent belts inside and outside BPI
Project
Manager
Continuous improvement at Shamrock
Commitment to Quality is a building block in Shamrock
Mission
Deliver satisfaction to customers through high quality
service, performance and right products
We treat customers as friends and all associates as
family
Example from Toyota, another great family owned enterprise
CIC Revival
Attributes of CIC in Shamrock:
1) Management Participation- CIC members will be selected, supported by Management and
included in Branch management meetings for project update
2) Empowerment – CIC members will be given formal training at the beginning and throughout
their one year tenure to develop skills, capability and confidence.
3) Problem solving - CIC members is to meet once in a week with BPI facilitators and were
given 8 hours a week to learn to identify and resolve problems that has immediate impact on
their work.
Structure of CIC –Management Participation
Steering committee
BPI Facilitator
Focus Group = CIC Graduates
CIC Members
WH Ops Trans SalesPurch
asing
Acc
ount
ing
Mar
keti
ng
Con
tract
Adm
in
Cat
Man
Successful CIC requires management 100% buy-in and
oversight to ensure careful management of autonomous work
Steering committee provides such oversight and consists of
leaders of Sales, Warehouse, Trans and Supply Chain and
Shared Services
Steering Committee approves CIC projects and enforces
limits on the nature of the changes that can be made
autonomously and changes that are not unauthorized
BPI provides training, coaching, mentoring, and is responsible
for projects
Focus group consists of graduates of CIC and serves as an
additional resource to current members
CIC members are selected from a pool of applicants by
Steering committee and BPI facilitator
Steering Committee and BPI hosts quarterly celebration of
completed projects
Empowerment through training
Training on Lean, 5S and Kaizen
Eight Fundamental Tools 5S Kaizen board 8 wastes Brainstorming SIPOC and process map Parero chart / Histogram Fishbone A3 Control plan
Quarterly celebration of success
• Other tools / techniques will be taught on an as needed basis,
including access to statistical tools.
Select Projects
Set Target /
Goal
Set Action Plan
Root Cause Analysis/5 Y s
Select & Implement Solutions
Check Improvement
Result
Standardize,
Control
Make Further
Improvements
Improvement Steps
Problem Solving
Types of Problem Solving
Transformation / Breakthrough
Improvement of current process (fix what s broken, remove waste and
defects)
Business Enhancement (New features,
new service)
New Product
Pro
du
ct /
Ser
vice
qu
alit
y
Process change
Status Quo
Scope is limited to selected improvement of current process that would yield immediate measurable results
Projects are selected by CIC steering committee from employee suggestions and branch / factory initiatives
Project should be small enough to complete within one quarter
Guided by BPI and supported by leaders Project $ save should be calculated by each
quarter and certified by Finance Use visual board to make the process and
outcome of autonomous improvement visually apparent
Scope of CIC
CIC Estimated Time to work – 27 hours per
Quarter Estimated hours:
Weekly Training – 6 hours (0.5 hours each week *12)
Weekly meeting to assess progress and address gap – 6 hours (0.5 hours each
week *12)
Project work - Develop project charter, data collection, root cause analysis, solution
implementation and tracking – 12 hours (1 hour each week *12)
Attendance to Branch Senior Staff Meeting for CIC Team Update – 0.5 hour for
each (Team member take turn for the 15 min spot in the meeting)
Quarterly Celebration – 2.5 hours
STICKY TOUR
Primary Metric:
• Number of tours conducted during a calendar year.
Start / Stop Points for Process:
Start: When scheduling a customer tour must wait on Business
review specialist to conduct tour
Stop: When scheduling tour sales representative can schedule and
conduct the tour the Rep check the order guide for DWO items
In Scope: customer retention process
Out of Scope: Buying, Storing, Shipping and Delivering
Core/Extended Team
Organization: AZ Foods business development
Team Members, Stakeholders:
BUSINESS CASE:
• Customer tours are a great way to increase customer loyalty aka
Stickiness.
• Customer tours are also a great way to showcase the full
capability of Shamrock Foods, including vertical integration and
manufacturing.
Problem Statement:
• In calendar year 2016 we conducted 120 customer tours.
• The current process for conducting a tour requires scheduling
with the business review specialist (BRS).
• Individual sales representatives are not empowered to conduct
tours on their own.
Goal Statement:
• Increase the amount of customer tours by 50%This is an unedited example of
CIC team’s work and not meant
for technical presentation
Current tour process flow – High
Level
Request
date and
time
Waiting
period for
response
Contact
customer to
verify /confirm
schedule
If date is
not good
Determine
what to
show
customer
Contact BRS
to provide
customer
information
Contact
business
review
specialist
(only one
person)
Invite
manager to
attend
Contact
specialists for
areas of
interest
Meet
custome
r at the
rock
Conduct
Tour
(Opportunity
for content
development
)1 to 4
weeks!
This is an unedited example of
CIC team’s work and not meant
for technical presentation
Current tour process map
This is an unedited example of
CIC team’s work and not meant
for technical presentation
Tour Fishbone
Due to long waiting
time
Sales people could
not run their own
tours
Benefit of the tour
was not known
Not customer centric
Benefit of the tour
was not known
Schedule &
content of the tour
This is an unedited example of
CIC team’s work and not meant
for technical presentation
1. Enable sales reps to conduct tours
(through 2 & 3 below)
2. Create pre-tour checklist
3. Create content, script, map for tour and
review process
SELECTED SOLUTIONS
1. The amount of tours conducted is
restricted by the number of people
who conduct them – Currently only
one employee
2. Sales people are not encouraged to
conduct tours (No standard tours /
content)
3. Benefit of tour not known (No process
to review the benefit of the tour – part of
the lack of standard)
4. Tour scheduling and content is not
catered to customer need (Lack of
customer communication before the
tour)
Root causes in RedThis is something the coaching GB should
have helped the team to dig deeper – They
could have calculated financial benefit
before and after the tour. It was my coaching
point for the GB.
This is an unedited version of
CIC team’s work and not meant
for technical presentation
Then, the team drafted a new tour draft brochure with data that they want to share with current and future customers
24
Welcome to
Shamrock
Foods AZ Beverage Dept -
2
Meat Co -
3
Produce -
4
Automated WH -
5
Receiving - loading
16
Brochure idea (not an
official document)
This is an unedited example of
CIC team’s work and not meant
for technical presentation
Warehouse statistics and
Shamrock family products
This is an unedited example of
CIC team’s work and not meant
for technical presentation
CIC / Associate Engagement Update CIC member projects progress:
DWO team – Solution in place. 90% of the DWO is in Shamrock order under DWO vendor Late Truck Project – The team is implementing control process, so far working very well Sticky Tours project – Drafted a brochure. Sent out to Marketing with Mgr. approval
CIC platform: Preparing CIC graduation certificates Selection process for next team members and identification of the potential projects
underway CIC Steering Committee next week Next celebration is 7/14 at the same auditorium This is an unedited example of
CIC team’s work and not meant
for technical presentation