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Making Your Farm Making Your Farm Business More Efficient Business More Efficient Through Lean Thinking Through Lean Thinking PrinciplesPrinciples

Presented By: Jim Cooper & Avery MurphyPresented By: Jim Cooper & Avery Murphy

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Why Lean Thinking?Why Lean Thinking?

The ability to adapt to the mindset as an The ability to adapt to the mindset as an early adopter should provide a early adopter should provide a competitive advantage to the farm competitive advantage to the farm operation, as your operation can act as a operation, as your operation can act as a partner in improving the entire chain from partner in improving the entire chain from field to tablefield to table

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Lean Thinking is a systematic approach Lean Thinking is a systematic approach to identifying and eliminating waste while to identifying and eliminating waste while focusing on adding value to your internal focusing on adding value to your internal and external customersand external customers..

What is Lean Thinking?What is Lean Thinking?

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What is Lean Thinking?What is Lean Thinking?

Lean thinking describes an approach to Lean thinking describes an approach to business that aims to deliver more and more business that aims to deliver more and more with less and less .with less and less . Less human effort, Less human effort, Less equipment,Less equipment, Less time Less time Less space Less space

Lean thinking involves identifying and Lean thinking involves identifying and eliminating all forms of waste in supply chains eliminating all forms of waste in supply chains and focusing instead on what delivers value for and focusing instead on what delivers value for consumers.consumers.

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The Lean DriversThe Lean Drivers

TechnologyProcess

People

• Flow• Elimination of Waste

• Lean Thinking• Employee Involvement

• Tools to support people and process

Customer Success

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Defining ValueDefining Value

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Defining WasteDefining Waste

Waste is anything that consumes time or Waste is anything that consumes time or resources but does not add value to the resources but does not add value to the product or service, as viewed from the product or service, as viewed from the perspective of the customer.perspective of the customer.

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Unnecessary Motion

WastesWastes--Long period of inactivity for people, Long period of inactivity for people, information, machinery, or materialsinformation, machinery, or materials

ProcrastinationProcrastination Calls not returned Calls not returned Waiting for clarification or approval from Waiting for clarification or approval from

the “ Boss”the “ Boss” No inventory controlNo inventory control

-Extra steps taken by employees and -Extra steps taken by employees and equipment to accommodate inefficient equipment to accommodate inefficient process layout, defects, reprocessing, process layout, defects, reprocessing, overproduction or excess inventoryoverproduction or excess inventory

Walking around an unorganized shopWalking around an unorganized shop Location of officeLocation of office Employee turnoverEmployee turnover

Waiting

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Defects

Inappropriate Processing

Wastes (con’t)Wastes (con’t) ––Frequent errors in paperwork, product Frequent errors in paperwork, product resulting in scrap, rework or repairresulting in scrap, rework or repair

Confusion due to poor communicationConfusion due to poor communication Data entry error (age verification, pedigree Data entry error (age verification, pedigree

registration, Agri-Stability)registration, Agri-Stability) Spoiled productSpoiled product

– – Using the wrong sets of tools, Using the wrong sets of tools, procedures or systemsprocedures or systems

Entering data several timesEntering data several times Improper equipment for the jobImproper equipment for the job

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Wastes (con’t)Wastes (con’t)

– – Producing more/sooner than the Producing more/sooner than the internal or external customer needsinternal or external customer needs

Mixing of products that can expireMixing of products that can expire Excessive storage of products until the Excessive storage of products until the

customer needs themcustomer needs them

– – Excessive storage and delay of Excessive storage and delay of information or products. information or products.

Wrong materials Wrong materials Sales on raw materials Sales on raw materials

Unnecessary Inventory

Overproduction

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Wastes (con’t)Wastes (con’t)– – Excessive movement of people, Excessive movement of people,

information, or materials. Handling information, or materials. Handling damage could be incurred.damage could be incurred.

Not finishing jobsNot finishing jobs Poor planningPoor planning

-Untapped Human Capital-Untapped Human Capital Skill sets of employeesSkill sets of employees Part-time or contract hire for unwanted or highly Part-time or contract hire for unwanted or highly

skilled taskskilled task TeamworkTeamwork

-Energy-Energy Power wastePower waste

Transportation

1212Ford Motor Co.

5 S5 S

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Lean Thinking for Lean Thinking for Producers in AlbertaProducers in Alberta

5 primary producers from both crop and 5 primary producers from both crop and livestock production have taken livestock production have taken advantage of program funding.advantage of program funding.

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Potential Funding for Potential Funding for Producers in AlbertaProducers in Alberta

Growing Forward Productivity Improvement Growing Forward Productivity Improvement Project for ProducersProject for Producers Phase 1: Introductory Educational sessionPhase 1: Introductory Educational session

Introducing and developing the producer’s education in Introducing and developing the producer’s education in Lean principles.Lean principles.

Cost: 100% covered by AB Agriculture and Rural Cost: 100% covered by AB Agriculture and Rural Development (ARD)Development (ARD)

Phase 2: In-depth Training SessionPhase 2: In-depth Training Session Identification of opportunities for Key Improvement Identification of opportunities for Key Improvement

Projects and actions for the company to pursue a Lean Projects and actions for the company to pursue a Lean culture and continual process improvement.culture and continual process improvement.

Cost:100% up to $25,000 covered by ARDCost:100% up to $25,000 covered by ARD

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Is this for my Operation? Is this for my Operation?

Primary producer with an Alberta crop or Primary producer with an Alberta crop or livestock operation with a market value of livestock operation with a market value of production exceeding $10,000 annually;production exceeding $10,000 annually;

Willing to share information with Alberta Willing to share information with Alberta Agriculture and Rural Development (ARD) staff Agriculture and Rural Development (ARD) staff and consultants;and consultants;

Motivated to implement change, provide Motivated to implement change, provide resources and commit time;resources and commit time;

Part of an existing value chain (preferably)Part of an existing value chain (preferably)

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Questions?Questions?