American Meat Institute Lean Six Sigma Overview

Presenter: Eric Densmore

Senior Director Lean Six Sigma BEF Foods, Inc.

April 9th, 2014

Agenda BEF Foods Lean Six Sigma Overview

What is Lean?

What is Six Sigma?

Lean Six Sigma in Human Resources

Lean Six Sigma in Safety

Wrap-up

How many do you count??

I’ll give you the answer at the end of the presentation

Introduction of Lean at BEF Foods, Inc. We began our Lean Journey in 2011

Outside consulting firm assessed manufacturing plants

Originally six manufacturing plants

Each plant has a Lean Champion

Key Performance Indicators

Operational Equipment Effectiveness (OEE%)

Plant Yield Percent

Pounds/ man hour

Cost per hundredth weight (CWT$)

Introduction of Lean at BEF Foods, Inc. Our Transformation

Now a four plant network Xenia, OH Hillsdale, MI Lima, OH Sulphur Springs, TX

Our Continuous Improvement program is named G.E.A.R. Getting Efficient Absolute Results Our metrics now include Safety & Quality

Skill Development G.E.A.R. Forums Certified Lean Six Sigma Black Belt Lean Six Sigma Green Belt Training Restaurant G.E.A.R. training

What is Lean? History

Toyota Production System (TPS)

But Lean has been around much longer 1574 Spanish Arsenal– galley ships Gatling gun- interchangeable parts Henry Ford

Chicago Stockyard Key Figures

James Womack Shigeo Shingo Taiichi Ohno

What is Lean? What is Lean?

Removing or eliminating waste from a process

What is Waste?

Waste is any activity that consumes time, resources, or space but does not add any value to the product or service

What is a Value- Added activity?

Three criteria

Customer is willing to pay for it

Transforms or changes the material or object

Done Right the first time

What is Lean? Waste Types

• Overproduction • Motion • Defects • Over processing • Inventory • Waiting • Transportation • Under-utilized human talent

• Transportation • Inventory • Motion • Waiting • Over processing • Overproduction • Defects • Under-utilized human talent

What is Lean? Fundamental Lean Tools

Waste Identification Waste Walk—Gemba Walks

Process Mapping Swimlane, Spaghetti Diagram

5S Sort, Set-In-Order, Shine, Standardize & Sustain

Kaizen Kai- meaning “change” Zen- meaning “good”

SMED Single Minute Exchange of Dies

What is Six Sigma? History

Motorola

General Electric– Jack Welch

What is Six Sigma?

Greek letter σ represents ‘Standard Deviation’

Data driven process improvement approach

Seeks to reduce process variation

Results in no more than 3.4 Defects Per Million Opportunities (DPMO)

What is Six Sigma? What is Lean Six Sigma?

A Six Sigma process has at least 6 Standard Deviations between the Mean and the nearest spec limit

Sigma Level Defects Per Million

Opportunities (DPMO)

Percent Defects Percent Success

1 691,462 69 31 2 308538 31 69 3 66807 6.7 93.3 4 6210 0.62 99.38 5 233 0.023 99.977 6 3.4 0.00034 99.99966

What is Six Sigma? The Six Sigma Process

Follows the D-M-A-I-C Process

Define

Measure

Analysis Improve

Control

Project Selection Project Charter

Measurement System Analysis High-level Process Map

Detailed Process Map Cause & Effect (Fishbone) Diagram Pareto Charts

DOE Poka Yoke Benchmarking

Control Charts (SPC) Control Plan

Is 99.9% Good Enough? If 99.9% Is Good Enough, Then . . . 12 newborns will be given to the wrong parents daily. 114,500 mismatched pairs of shoes will be shipped/year. 18,322 pieces of mail will be mishandled/hour. 2,000,000 documents will be lost by the IRS this year. 2.5 million books will be shipped with the wrong covers.

Two planes landing at Chicago's O'Hare airport will be unsafe each day. 315 entries in Webster's dictionary will be misspelled.

20,000 incorrect drug prescriptions will be written this year.

880,000 credit cards in circulation will turn out to have incorrect cardholder information on their magnetic strips. 103,260 income tax returns will be processed incorrectly during the year. 5.5 million cases of soft drinks produced will be flat. 291 pacemaker operations will be performed incorrectly. 3,056 copies of tomorrow's Wall Street Journal will be missing one of the three sections.

LSS in Human Resources

What are some examples of Human Resurces Processes? Hiring

Evaluations

Development

What are HR defects? Examples

LSS in Safety

What are Safety Processes? Audits/ Inspections

Compliance

Awareness

What are Safety defects? Examples

How many do you count??

Who had something different?

Who counted

16?

Questions??

Thank you!