Shamrock Foods Company Continuous Improvement Journey...3 Process maturity management Process...

Shamrock Foods Company

Continuous Improvement

Journey

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

Continuing Improvement Council in

Shamrock Foods AZ Branch

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

CIC Projects Example

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



Current tour process map




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




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



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)




Warehouse statistics and

Shamrock family products




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



From the CIC Celebrations 28

Presentation Board Examples

29

CIC Training Room

Questions?

Shamrock Foods Company Continuous Improvement Journey...3 Process maturity management Process...

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