FBS Conference 2016 - Mogler · Key performance indicators –KPI’s. ... 4 full-time 5th generation –Manager / Asst. Manager new farrowing ... Only Production Performance –use

https://www.youtube.com/watch?v=wz28yMcDvVM

What is the relevant application

to your farm business

management and System

practices?

Take 3 minutes to list and discuss at your table

What is the relevant application

to your farm business

management and System

practices?

You dont need to be a large operation to be capable of applying best business practices.

Its sometimes hard to see the opportunities in a system which you created.

You cant change everything at once, instead focus on Kaizen continuous improvement.

"Applying Lean Manufacturing

Processes to your Operational

Decisions, Farm Accounting and

Analysis Reporting."Kent Mogler

Brian Metzger

My objective: We all gain 3 ideas for

consideration in our operation

Table discussions

Presentation ideas

Informal collaboration / reflective thinking

Throughout the conference:

You will:

pick up at least 3-5 more ideas from other presenters

Pick up more ideas from informal discussions / break-outs

If you attended yesterdays workshop, you already have some to-dos

By end of the conference

10+ ideas for consideration

Feel like this was a successful and productive use of your time

Your challenge will be to prioritize and act upon the ideas and get others in

your operation to buy-in

Star the top 3 ideas which you will take action on or investigate further

You will have just implemented a best

practice.

Status quo practice

Attend conferences

Return to work and share

that it was a good

conference

Return to business as usual

Best practice

Attend conferences

Share learnings with others and highlight top take-away priorities

Establish a due date and task list for accomplishment

3 months later, debrief again with others your progress and review notes from conference

Select 2-3 more ideas to begin taking action on

https://www.youtube.com/watch?v=wz28yMcDvVM

3 Key concepts

Muda = waste

Create Continuous Flow

Kaizen Continuous Improvement

Outside Toyota, problems have a negative connotation. Inside, we see it

as something we can improve upon.

Why focus on WASTE?

Non-Value Added

Value Added 7-11%

Change of form, fit or function Non-Value Added - 90%Resources spent which the

customer doesnt pay for - WASTE

Womack & Jones,

Lean Thinking

Results achieved

Lead Time Reduction

0 25 50 75 100

Percentage of Benefits Achieved

Productivity Increase

WIP Reduction

Quality Improvement

Space Utilization

Energy Savings

Solid Waste

Water Waste

Womack & Jones,

Lean Thinking

Characteristics of Companies which

Practice Lean / Continuous Improvement

Continuous improvement is their culture,

not their program.

Always looking for single piece flow

- Not batch processing (start / stop)

They measure waste.

Key performance indicators KPIs

Results

Industry leading in performance

Always changing / evolving their business practices with purpose & clear goals

Low employee turnover

How can I apply this to a farm operation?

I think about

Insurance

Coverage

Pig Crush &

Hedging StrategyPlant corn or soybeans?

Futures Market

Debt service and

next years input

costs

VFD from the FDA

Payroll

Converting acreage to

organic practices

3rd party Audits

P&L Statements / Cash flow

Farrowing practices

observed / non-observed?

Employee challenges

Marker Price

Discovery

Lean Definition of Waste

spending resources (money/time) on something the

customer doesnt pay for

Defects

Over production

Waiting

Non-utilization of talent

Transportation

Inventory

Motion

Excess processing

KPIs primarily point to waste loss opportunities!!

Applying these principles into a farm

operation and how we utilize FBS

Pig Hill Operations Overview

www.pighillfarm.com

A Systems View

Practical Application

Operations Overview

Applying these principles into a farm

operation and how we utilize FBS

Operations Overview

Five Generations of Farming in NW Iowa

Four brothers joined farming operation between 1977 & 1992, each having their area of focus: crops / construction beef / grain facilityhogs farrow to finish hogs & record keeping

Youngest brothers service ended in Fall 2015 to blessings eternal. Transitioned accounting to a full-time staff in 2012 Brian Metzger. Welcome FBS let the journey begin!

4 full-time 5th generation Manager / Asst. Manager new farrowing site, Agronomy & Beef, Trucking --- employed in other ag. related jobs, college, high school, elementary and waiting for school.

Systems View

Systems View

Single Source of Data

FBS

Feedmill systems

Packer Data

Weekly Barn Service Form

Pig Champ

Timecards

Payroll

Precision Crop Systems

Cattle Feed Records

Accounting Entries

KPI benchmarks

System Admin

Future:

Med Treatment records

Audit / compliance data

Equip Maintenance Schedules

Asset Management

Other

Systems View


FBS

Financial Reports

P&L StatementsBalance Sheet

Cash FlowBank Reconciliation

Livestock Operational Performance

Marketing Summary

Group Close-OutMortality

Etc.

Crop Performance

Field History Reports

Crop History Reports

Landlord Summary

Daily Operations Tasks

Feed Delivery PlanMarketing Shipment Plan

Pig Movement PlanCrop Harvest Plan

A systems value is derived only when output

is provided that is timely, accurate, clear and insightful.

Systems View


FBS

Financial Reports




Marketing Summary


Etc.

Crop Performance



Landlord Summary




It is enhanced when its a single source of truth and cascades holistically.

What is your system view?

What role does FBS play in your operation?

Only accounting

Only Production Performance use a different system for accounting

Still not sure, just getting started

Only system you use in the office

Whats your frequency of publishing financial statements by enterprise (or in total)?

How timely (within 1-2 weeks, before next month, only when needed for a review

with accountant / lender)?

Our Output Vision is Simple:

Publish Financial Results by EnterpriseOn Day 1 Every month

Why?

Drives out waste no errors, re-work or waiting

Forces Flow data comes from user at time of action

Value is derived when output is timely, accurate, clear and insightful

Our Output Vision is Simple:

Secondary benefits

Publish group close-outs within 1 week of last shipment

Weekly Health & Mortality on Tuesday (goal Monday)

Market weights and Sort CV% within 2 days (the delay is the packer).

Working on leveraging FBS for marketing closer to packer target weights dont need scales on every feed bin.

Apply Lean Principles to FBS

Eliminate waste vigorously

Employee engagement

Create flow


Eliminate waste vigorously.

Time event to FBS recording minimize (within 24 hours)

Error rates find root cause and eliminate

# of data touches & stores anything beyond one is waste.

Spreadsheets are for proto-typing, not for on going use.

Extra data touches, extra data stores, high overhead

maintenance and single user focus.


Reports should engage employees.

Emotional response wont remember what you said, but I will remember how I felt.

Focus on decisions / answering questions, not data feedback.

In context measure against KPI, last year, plan

One page

Graphs

Example


Create Flow

Always changing and always current

Data updates occur more frequently

Feed mill updates weekly (daily?)

A/P and A/R small task everyday

Crop Harvest recording by load or by day or by week or by season

The test: I can create a report today and it will be complete, current and useful.

Example #2

Table Discussion Time

Two Report examples

1. P&L Statements / Monthly Reports

FBS Financial Statements

Published at end of Day 1, review meeting 2-3 days later

2. Group Close-out to operational focus

Two Report examples

P&L Statements / Monthly Reports

..\..\FBS Financial Statements.pdf

Published at end of Day 1, review meeting 2-3 days later

Group Close-out to operational focus

Two Report examples

1.

2. Group Close-out to operational focus

Group Close Out Report

Group Close Out with Financials

Marketing Opportunity

Target Weight & CV % by Load

Systems View


FBS

Financial Reports




Marketing Summary


Etc.

Crop Performance



Landlord Summary




A systems value is derived only when output

is provided that is timely, accurate, clear and insightful.

It is enhanced when its a single source of truth and cascades holistically.

Considerations or distractions?

Security

Infrastructure Support

Data Ownership

Big Data and its role in the operation

Internet of Farm Things

Apps and more Apps

Implement a best practice.

Status quo practice

Attend conferences

Return to work and share

that it was a good

conference

Return to business as usual

Best practice

Attend conferences

Share learnings with others and highlight top take-away priorities

Establish a due date and task list for accomplishment

3 months later, debrief again with others your progress and review notes from conference

Select 2-3 more ideas to begin taking action on

Respect this formula

D x V x F > R

D = Dissatisfaction with current state

V = Vision for the future

F = First Steps

R = Resistance to Change

DVF must be greater than R for change to occur.

Other Resources:

2 Second Lean How to Grow People and Build a Fun Lean Culture Paul Akers

Practical Youtube Videos about a company which engages their

employees in implementing change ideas everyday

Simon Sinek Why Leaders Eat Last (Ted Talks) and book

The biological science of why scorecards, recognition, and trust are key

elements of successful organizations.

I

On behalf of Pig Hill and Mogler Farms,

you are welcome to NW Iowa. We would

be honored to have you as our guests.

Our relationships and neighbors are more

important than reports or databases!

Documents

FBS Conference 2016 - Mogler · Key performance indicators –KPI’s. ... 4 full-time 5th generation –Manager / Asst. Manager new farrowing ... Only Production Performance –use