dmaic "catapults" continuous improvement at hormel
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AgendaHormel Foods, Inc.
History of QIP Six Sigma
CIP Reinvigoration
Variation Tool – Catapult
Questions
Getting Started in 1891
Geo. A Hormel & Company Pork Packers and Provision Dealers
Founded in Austin, MN - 1891
Processed 610 hogs in the first year
$220,000 in sales
118 Years Later…….Fortune 500 CompanyOver 18,000 EmployeesOver 2,100 Food
productsOver 350 TrademarksInternationally
recognizedProcess over 9.0 million
hogs annuallyProcess 1.23 billion
pounds of turkeys annually
Bacon • Pork • Shelf Stable Products Precooked Pre-portioned Chili Raw Precooked Corned Beef Hash Bits Flavored Stews
Always Tender Cooked Meats Ham Salsas/Sauces Smoked • Dry Sausage Asian Sauces Cooked Pepperoni (House of Tsang)
Genoa Salami SPAM Hard Salami
Turkey • Cooked Beef Whole Further Processed • Bread Ready Meats
Core Competencies
RECENT ACQUISITIONSAlma Foods – Alma, KSCPC – Farmer John, Vernon, CALloyd’s BBQ – Mendota Heights, MNMark-Lynn Foods – Bremen, GAMexican Accent – New Berlin, WIProvena Foods – Lathrop, CASaag’s – San Leandro, CAValley Fresh – Turlock, CA8 CO-PACKERS -
All Hormel Manufacturing, Distribution Center & Co-packer Locations (142)
JOTSJOTS – Barron, WIJOTS – Faribault, MNJOTS – Melrose, MNJOTS – Montevideo, MNJOTS – Pelican Rapids, MNJOTS – Willmar, MN2 CO-PACKERS -
SPECIALTY FOODSCFI – Sparta, WIDCB – Bondurant, IADCB – Mitchellville, IADCB – Perrysburg, OHDCB – Savannah, GADCB – Visalia, CAHHL – Quakertown, PA22 CO-PACKERS -
HORMELAlgona, IAAtlanta, GAAustin, MNBeloit, WICCPC - Aurora, ILDold Foods - Wichita, KSFremont, NEFort Dodge Foods - Fort Dodge, IAKnoxville, IAOsceola Foods - Osceola, IARochelle Foods - Rochelle, ILStockton, CA
DAN’S PRIZE SUBSIDIARYDan’s Prize – Browerville, MNDan’s Prize – Long Prairie, MN
71 CO-PACKERS -
Campbell Soup
Macphie
Herdez
Du Breton Farms
Carapelli
Pelopac
DISTRIBUTION CENTERSAtlanta, GALSI – Eldridge, IAOsceola Foods - Osceola, IAPower Logistics – Dayton, OHPrism – Stockton, CA
Hormel Alimentos Hormel Alimentos S.A.MexicoS.A.Mexico
Blue RibbonBlue RibbonPanamaPanama
Tulip Ltd.Tulip Ltd.
DenmarkDenmarkBeijing Hormel Foods Co., Ltd. ChinaBeijing Hormel Foods Co., Ltd. China
Shanghai Hormel Foods Co., Ltd. ChinaShanghai Hormel Foods Co., Ltd. China
C.J. Corp. KoreaC.J. Corp. Korea
AustraliaAustralia
Purefoods-HormelPurefoods-Hormel PhilippinesPhilippines
San Miguel Hormel VietnamSan Miguel Hormel Vietnam
International Partners
Okinawa Hormel, Ltd.Okinawa Hormel, Ltd.
AGENDA - Continued
Hormel Foods, Inc.
History of QIP Six Sigma
CIP Reinvigoration
Variation Tool – Catapult
Questions
“We should all go to our posts of duty daily with the feeling the work can be done still a little bit finer, a little bit better than we are doing it.”
- George A. Hormel
Hormel - Heritage
Fourteen principals of quality (simplified to six in 2008)
Quality Improvement Teams at each Plant location
Education & Training
5 Fundamentals of quality management(next slide)
Quality Improvement Process (QIP) - 1986
Five Fundamentals of Quality
ManagementThe five fundamentals every employee must know and understand:
1 - Definition of quality is conformance to customer requirements 2 - System of quality is prevention and continuous
improvement 3 - Performance standard is zero defects 4 - Measurement is price of nonconformance (PONC) 5 - All work is a process (process optimization)
QIP Process – early 2000’s
Established QIP - Quality Improvement Process
Plant specific issues: Productivity, Quality, Yields,
SafetyCommunications, Employee
Morale
But… we wanted more!
Objective – Continuous
Improvement
Compliment to existing QIP efforts. not replace it
Provide a method for a systematic analysis and improvement of key business processes.
facts and data – not emotion Be the best we can be in every business process.
important to the Customer Target projects that will have substantial favorable financial impact.
major consideration for project selection
QIP Steering Committee - Research- Six Sigma was getting a lot of attention- Success by other companies/industries- Business publications, consultants- Benchmarked with other companies
Began the Process in 2002:- Selected the Juran Institute as consultant- Juran spent 1 day with executives (approval)
- Juran started certification process for BB’s
Objective – Continuous
Improvement
Roles and Responsibilities:Champions (34)QIP Steering CommitteeBlack BeltsTeam Member ExpertsAd-hoc team members
Six Sigma - Corporate Deployment
Six Sigma - Corporate Deployment
Process Champion submits project ideas
Steering Committee selects projects.
Projects are assigned to “Black Belts”
Cross-functional “Team Member Experts”
D M A I C PROCESSDefine, Measure, Analyze, Improve, Control
Deductions
RF SKU Rationalization
Master Records
Deduction Resolution
Foodservice Pricing
Damage & Unsaleables
Forecasting
R&D NPD
Pre-cooked Bacon
G.P. SKU Rationalization
Procurement and A/P
Project Enterprise
Turkey Improvement - JOTS
Order Processing
Freight & Warehouse
Bracket Pricing
Broker Utilization
Pallets Analysis
JOTS - Livability
Foodservice Pricing
Label Verification
CPS Work Load Model
Pepperoni Cupping
Dubuque Data Collection
R&D Lab Services
Inventory Reduction
Tray Optimization
Austin Blues - Pulled Chicken
GP Foreign Material
CFI Cost Reduction
Six Sigma - Corporate Deployment
Complete Project List
TransactionalAdministrative
Operational
Completed
YTD Accumulated Projects
2003 4,554,990$ 4,554,990$
2004 3,471,606$ 8,026,596$ 2
2005 3,385,219$ 11,411,815$ 2
2006 2,396,223$ 13,808,038$ 5
2007 11,562,647$ 25,370,685$ 7
2008 11,279,409$ 36,650,094$ 5
2009 1,180,276$ 37,830,370$ 0
TOTAL 36,650,094$ 21
Six Sigma - Corporate Deployment
Six Sigma Scorecard
Bill SnyderSenior Vice President of
Supply Chain
Rod KekkonenDirector of
I.E.
55 IE’s25 Plants
6 Corp. Staff IE’s
7 Co. CertifiedBlack Belts
Bryan FarnsworthV.P. of
Quality Management
11 Co. Staff QC Eng.
Six Sigma - Corporate Deployment
Bill SnyderSenior Vice President of
Supply Chain
Scott ChristensenDirector of
I.E./Six Sigma
55 IE’s25 Plants
1 Co. IE Mgr.6 Co. Staff IE’s
7 Co. CertifiedBlack Belts
Six Sigma - Corporate Deployment (2008)
AGENDA - Continued
Hormel Foods, Inc.
History of QIP Six Sigma
CIP Reinvigoration
Variation Tool – Catapult
Questions
Mission/Vision/Values= Our Way
CEO – Jeff Ettinger: “Over the past 10 years, the size of our team has
nearly doubled, and we have begun to grow internationally as well. Our growth has provided us an opportunity to refresh our mission and remind everyone how we strive to do business at Hormel Foods.
This new program, called Our Way, is a clear, systematic and straightforward way to show our priorities and how we operate. Our Way represents a vision for the future as we continue to grow our heritage.”
Principles Brand
charity programming (like Komen)
Community investments
Educational giving
Hunger work
Major gifts (Hormel Institute)
People Code of
conduct Diversity Employee
wellness programming
Safety Training and
employee benefits
Products Food
quality Food
safety Health and
wellness brand programs
Performance Corporate
governance Financial
sustainability (innovation pipeline)
Process Air quality
efforts Animal
welfare management
Energy use reduction
Solid waste and recycling
Water use reduction & system protection
Corporate Reporting
Responsibilities
DMAIC RELIABILITY
Safety SQM CIP OEE Yields
Productivity Environmental Sustainability
Leveraging a Continuous
Improvement Culture
Don’t have time for all of this, I need to focus on my job !
Where do we apply our resources – only have so much time and so many people !
Don’t need more, need focus on what we have !
Is this just the same old QIP, but now called CIP ?
I’ve got Reliability, how does CIP fit into this initiative ?
We already have goals and objectives which drive our efforts !
What’s the FIT?
The Continuous Improvement Process:
CIP is not an additional or separate initiative.
CIP is a way of bringing our processing objectives together in one focus.
The FIT is…….
CIP Competencies
1 - Teamwork
2 - Setting Goals and Objectives
3 - Problem Solving – DMAIC Process
4 – Team Recognition
I. Teamwork Guidelines
II. Meeting Mechanics
III. Team Leader Role
IV. Team Member Role
1 - Teamwork
Company-Wide Goals5, 10, 2-12, <1, <3.5%
Division
Department
Team Goals
Vision
Priority
CIP
Personal Objectives
2 - Setting Goals and Objectives
Goal: Develop DMAIC problem solving competency at the plant locations.
Conducted three – two day sessions
Trained 50 employees
Working on 40 improvement projects
3 – Problem SolvingDMAIC Process
3 – Problem SolvingDMAIC Process
Define: Define project and who will work on it
Measure: Present Performance and possible causes of performance levels
Analyze: Identify key process problems
Improve: Optimize process performance
Control: Hold the gains
Six Sigma Methodology (DMAIC)
3 – Problem SolvingDMAIC Process
Define: Project Charter, SIPOC, Process Mapping, VOC, CTQ’S (critical to quality),
Measure: Y & X’s, Micro Mapping, Data Collection Plan, Graphing, Six Sigma Defect Rate
Analyze: FMEA, Hypotheses Tests, Question ‘Who, What, Where, and How ’, Data Validation, GOYA
Improve: Solutions - establish alternatives, Assess Risk, Design of Experiments, Simulations
Control: Implementation of Solutions, Time Lines, Savings, Feedback to Project Owner’s, SOP’s, Measurement
Six Sigma Methodology (DMAIC Tool Box)
Select Project
DefineProject Scopeand Size
Measure Analyze
Problem Cause Map
Improve Control
SolutionsSmall Problem
Utilize Task Force“RCA”
Small ProjectPersistent
Team Needed DMAIC Used
Large ProblemChronic Problem
Impacts Plant Cross-Functional Team
DMAIC Used
Measure Analyze Improve Control
3 – Problem SolvingDMAIC Process
3 – Problem SolvingDMAIC Process
Methodology:Plant Managers Select Projects & ParticipantsParticipants Research & Collect Project InformationAttend Training & Apply DMAIC ToolsPlant Managers Schedule Monthly UpdatesMonthly Six Sigma Team Conference Calls with ParticipantsDocument Project ProgressComplete Projects in Six MonthsDebrief ProjectsStart a Second Project in 2009Serve as a Problem Solving Resource, 2009
Best of the Best 2009 Project Recaps Include DMAIC
4 – Team Recognition
Goal: Linkage to the “BOB”(BOB - Best of the Best)
Application to CIP competencies Connect to Corporate initiativesRecognition of winners
+ 400 projects at Plant levelSelect Enterprise Winner
Agenda
Hormel Foods, Inc.
History of QIP Six Sigma
CIP Reinvigoration
Variation Tool – Catapult
Questions
(1) PROCESS FLOW (PF) or PROCESS MAP
(2) CUSTOMER DRIVEN CAUSE AND EFFECT (CE)
C= Constants SOPs
N= Noise
X= Experimental
C= Constants SOPs
N= Noise
X= Experimental
Output(s)and
SpecsHow What Who
- - -- - -- - -- - -- - -- - -- - -- - -- - -- - -- - -
How What Who- - -- - -- - -- - -- - -- - -- - -- - -- - -- - -- - -
How To Reduce Variation & Turn
An Art Into Science
Process Flow - Catapult
StartSet the
rubberbandPull back to177 degrees
Measuredistance and
recordRetrieve Ball
Hold down the catapult
Set the ball in the cup
Release
Cause & Effect Gas Mileage Driving to
WorkMEASUREMENTMEASUREMENT
GAS MILEAGE
Gage forTire Press.
Ride Brakes
Wind
Temperature
Humidity
A B
A B
Auto
Manual
Radial
All WX
Flat
Mou
ntai
ns
METHODMETHOD MACHINEMACHINE
SpeedometerType
Estimate ofFull Tank Maint. Sched.
Fast Start
Tire Rotation
Tune-Ups
Engine Warm-Up Time
Carburetor
Tire Press.
Weight
Air Conditioner
Transmission
Tire Type
Radio
Regular
PEOPLEPEOPLE MATERIALSMATERIALS ENVIRONMENTENVIRONMENT
DriverTraining
Gas Type
Driver
# ofPassengers
Oil Type
Fuel Additive
Highway or City
Terrain
Weather Conditions
Front or Rear Drive
Precipitation
IceSnowRain
Alti
tude
AgendaHormel Foods, Inc.
History of QIP Six Sigma
CIP Reinvigoration
Variation Tool – Catapult
Questions
Continuous Improvement
Methodologies Scientific Management Shewart’s Control Charts TQC JTQM Deming Prize QC Circles Juran Trilogy Lean (TPS) TPM Zero Defects
Industrial Engineering Six Sigma/DMAIC TQM MBNQA ISO BPR Workout Process Management Balance Scorecard DMADV Reliability/RCA