Lean Farm Review

Case Study - Dourie Farming Co Ltd

Rory Christie, runs Dourie Farming Company Ltd, a 2000-acre farming enterprise. The Dourie employs

more than 15 people and is a mainstay of economic activity in the Port William area.

Rory started to consider the use of lean principles in 2014 after participating in workshops on Lean

Management. Rory saw how lean could be a suitable way for him to achieve increased and sustained

profit levels. With one-to-one support from Ray McCreadie, Rory assessed his business, data and ways

of working.

What was done

Operations goals were determined by collating and analysing robust data on physical and financial

performance of the dairy enterprise to end of March 2014

Current State Issues:

Current Dairy system relies on twice a day milking (TAD)

Herd has grown to 1500 cows as a route to increase output to balance cost increase.

Spring block calving from February to April

Because of this the farm have an extreme milk production profile which peaks in May

Staff are pushed very hard due to long hours worked to maintain TAD milking.

Cows have to walk a very long way to grass

Milking parlour is too small in terms of output per hour eg 300 cows per hour (if all goes well) ie

10 hours milking time a day.

Dairy Lean is a management system that supports continuous improvements in production

efficiency which is achieved through maximising value and minimising waste throughout all the

processes in the dairy business.

Value is defined by the customer ie what the business gets paid for

Wastes are elements of activity that add time, effort or cost but which do not add value.

The Lean Farm Review was funded by SAOS and facilitated by Ray McCreadie from

LEAN TeamGB who worked with the farm team to implement and adopt the Dairy Lean Tools.

Future State Plans:

Milk 1500 cows once-a-day (OAD)

Work will start at 6 am and finish by 5 pm, stopping for 1-hour lunch.

This will be done by 4 members of staff

Move calving start date to 14th Feb and finish 14th April (9 weeks). The 3-year plan is now to

move to 6 weeks from the 1st of March.

Still have an extreme milk profile but less extreme than previously because OAD cows peak

lower but maintain a more level lactation curve.

Cost of production (COP) will drop over time allowing the farm to compete at world level giving

us flexibility of contract / buyer.

Walking distance, staffing, and parlour output are no longer an issue.

Medium term (post 3 years) the farm may be able to carry more cows as grass output increases

and the system evolves. (100 for every 1 T DM grown on the milking platform)

Carry only minimum machinery and support staff.

Dairy system will be simple, resilient and is driven by cost control.

Longer term stock, feeding & financial benefits …

• OAD will allows the farm to better manage body condition score of both the cows and in-calf-

heifers.

• Currently deliver on 50% of our ICH to calving at target weight 423 Kg and target BCS of 5.5.

OAD will help tighten the calving spread so meaning more replacement heifers will be born

earlier giving them a better start and longer to grow before bulling. Heifers born in the 1st 3

weeks of calving have the potential to be at least 36 Kg heavier than those born in the 2nd and

3rd three-week period of calving

• Currently deliver 90% of cows to calving at 5.5 BCS. OAD should allow to deliver 100%.

• Moving the calving pattern by 1 week and OAD will allows to feed less TMR and more

Maintenance diet. By moving 3 weeks we hope to reduce this to near zero. This will have

significant saving on amounts of silage required and cost saving on the bought-in element of the

TMR which will be replaced with grazed grass due to calving time being closer to Magic day.

• Gross profit target achieved, saving of over £1m over a 5-year period.

Some of the Lean Tools Used in this Project Process Chartering: Processes were defined using a big picture map and a PDCA action plan

agreed with key production indicators monitored using the data management tool.

Process Discipline: Production process reviews generally take place when there are breakdowns.

External technical support is sought when process outcomes do not match planned outcomes

Value Stream Mapping (Root Cause Solving): Instances of underperformance or potential

improvement are addressed by analysing the process data gathered before suggesting potential

solutions or seeking external advice.

Visual controls: White boards track progress in the milking process, animal health management

and daily, weekly and monthly tasks to be done. Good data management system

Standard Accountability Processes: Performance is discussed with the team openly and

regularly. The team is adopting more formal weekly meetings working on continuous improvement

Leader Standard Work: As the business owner and manager, Rory monitors adherence to agreed

procedures and ensures performance measures are recorded and reviewed. Since adopting lean

visual controls, there is greater understanding of the production focus and, therefore, Rory

expectations as their manager

Operational Planning: Goal and target setting, production plans and budgets: Embraced cost

management. Recording and allocating invoices to maintain tight control of costs. These records are

reviewed monthly and actions are taken to deliver the business plan when circumstances change