kellogg munoz, stein case study 2010 (1)
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This Presentation Belongs to George Muster, I am hereby uploading it for the lean community.TRANSCRIPT
Developing a Business Process Improvement Game Plan: An Interactive Workshop
K-Lean: A Program for Culture Change at Kellogg’s
Victor Munoz and Martin Stein
Food Manufacturing Summit
San Diego
January 31, 2011
Our Company
Sales 2009: more than USD 12 BillionPresent in: 180 countries8 Plants in Latin America
CONFIDENTIAL
Kellogg K-Lean
BACKGROUND
Corporate Offices: Battle Creek – Michigan, US
Sales 2009: more than USD $12 MM
Manufactures in 18 countries and marketed in more than 180
8 Plants in Latin America
4 Plants in México: Queretaro, Linares, Toluca, Mexicali
Challenges
• Global economic crisis
• Support commercial area, clients and consumer needs
• Improve value delivery
• Develop our people to manage the business in the future
• Create the future and deliver the results today
Culture Change
• Defining Goals, KPI’s and Metrics• Motivation of Organization to Accept Culture Change• Creating Standardized Training, Definitions and
Implementation Strategy• Building Internal Capability and Training Infrastructure• Program Operation Utilizing Automated System for
Reporting, Data Base on Best Practices and Sharing of Results on an Ongoing Basis
• Accelerating Cost Savings in Years 1 and 2 • Building the Business Case
Creating The Future
• It is not about the WHAT
• It is about the HOW
• Strategic decision:
®®
CONFIDENTIAL
Standard way to quantify GOOD
How to implement step by step?
With so many opportunities which one comes first?
TRACC
CONFIDENTIAL
ACTUAL SITUATION
Queretaro Plant: Started up April 2009 Special challenge in time in order to deliver results in short
time Pilot lines in Process and in Packing
Toluca / Linares Plants: Started up in May 2009 Toluca: pilot line Linares: Big Bang (Total Plant)
Mexicali Plant: Started up December 2009
The Kellogg K-Lean process and how they develop their people
CONFIDENTIAL
LEARNINGS
Company commitment
Communication, communication, communication
Openness to change. The hardest change is not on the Plant floor, it is with the middle management
EMPOWERMENT, EMPOWERMENT, EMPOWERMENT
The objective is not to get there, it is the JOURNEY
The Kellogg K-Lean process and how they develop their people
CONFIDENTIAL
ACHIEVEMENTS
Training with internal trainers
Querétaro 20 certified trainers 242 participants 50,000 hr/labor of training in 3 weeks
Linares 13 certified trainers 500 participants 150,000 hr/labor of training
Toluca 10 certified trainers 100 participants 30,000 hr/labor of training
Mexicali 7 certified trainers
The Kellogg K-Lean process and how they develop their people
CONFIDENTIAL
ACHIEVEMENTS
Common language, more “eyes” eliminating waste
Increasing throughput Packing capacity increase of 4%
annual
Dead times reduction (cleaning, fumigation) 40% time reduction during
fumigation 66% time reduction on dryer
clean up
Union Full support (People willing to arrive early for Shift Handover)
The Kellogg K-Lean process and how they develop their people
Creating The Future
• With the good results from previous years, how to keep improving….
• Where should we start?
• With so many options, what is it the right choice?
Envision World Class
Manage Change
CONFUSIONCONFUSION ANXIETYANXIETY RESISTANCERESISTANCE FRUSTRATIONFRUSTRATION TREADMILLTREADMILL
VISIONVISION SKILLSSKILLS INCENTIVESINCENTIVES RESOURCESRESOURCES ACTIONACTIONPLANPLAN
TRACC
• Quantitative Standards
• Step by step Implementation
• Systemic and sustainable approach
• Avoid shortcuts and reliance on traditional consulting approach
Implementation Roadmap
Learnings
• Company commitment
• Communication, communication, communication
• The hardest change is not on the plant floor, it is with the middle management
• Empowerment, empowerment, empowerment
• Coaching, coaching, coaching
People Development
• How to maintain K-lean path, time table, passion, etc.?
• How to maintain the knowledge?
• How ensure new people get on board and do not slow down the boat?
• What support the plant should have/need?
• How to create K-Lean bench?
People Development
• Training with internal trainers
People Development
• System leverage between plants
• Role evolution
• Additional work vs. transformation of current activities
• Link results with behavior and skills
• Proud of our products and workplace
Delivering Results
• Patience, patience, patience
Delivering Results
• Common language, more “eyes” eliminating waste– 43% waste reduction on corn line
• Increasing throughput
– Packing capacity increase of 4% annual
• Time reduction
– 40% during fumigation– 66% on dryer clean up– 60% on changeovers
• Union full support
Next Steps
• Consolidate and sharpen our manufacturing operating model
• Deployment in Venezuela, Ecuador, India and Australia
• Strengthen expansion of K-Lean beyond manufacturing
• Align our execution to the commercial function
• Become a talent powerhouse
Our Success History Is Just Beginning
• No incremental headcount
• Implementation vs. Transformation
• Leadership and Managing Change is the FOUNDATIONAL practice
• Mindsets and behaviors act on the speed and rhythm
®®
CONFIDENTIAL
The Kellogg K-Lean TEAM
Business Case Study Calculator
• Current Plant Output per Year • ______________________________________• Current Dollar Value of Plant Output per Year per Ton • ______________________________________• Current Level of Operating Efficiency• ______________________________________• Projected Level of Operating Efficiency• ______________________________________• Change in Operating Efficiency• ______________________________________• Multiply Change Times Dollar Value Times Increased Plant Output• ______________________________________• Expected Benefits per Year • ______________________________________
Example
• Current Plant Output per Year • __________100 Million Tons____________________________• Current Dollar Value of Plant Output per Year per Ton • ___________$ 360,000___________________________• Current Level of Operating Efficiency• ____________88%__________________________• Projected Level of Operating Efficiency• ____________93%__________________________• Change in Operating Efficiency• ______________5%________________________• Multiply Change Times Dollar Value Times Increased Plant Output• ______________5 X 5 Million Tons________________________• Expected Benefits per Year • _______________$ 1.8 Million_______________________
CONTACT
• Martin Stein• Vice President• Competitive Capabilities International
• +1 617 755 1960