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Quality Food Industry - 2010 1
NUMERAL ADVANCE
Consultancy in quality and performance
Proposition for a business service : « Quality for Business ».
Project for establishing a promotion programme on Food Quality for theEuropean market.
Quality Food Industry - 2010 2
Summary
A « Quality for Business » Programme in food industry
Part 1 : Why to do it ?
Part 2 : How to do it ?
Part 3 : Examples and references
Part 4 : Quality management with Lean Six Sigma
Part 5 : Business service offer
Quality Food Industry - 2010 3
PART 1
Why to do it ?
Quality Food Industry - 2010 4
1.1) Why to do it : food quality for business improvement
Food quality has a wider scope than food safety. Foodsafety is part of food quality.
Food quality will drive to:-Higher prices,-Better margins,-Better revenues.
Food Quality
Food Safety
Quality Food Industry - 2010 5
1.2) Food Quality Criteria
Food quality is built on food quality criteria such as:
-Nutritive value,-Ease of use,-Taste and pleasure,-Energetic and feeding value,-Customer’s information,-Protection environment-Others…
Quality Food Industry - 2010 6
1.3) Examples of French consumer’s food criteria
Nutrition information :Ingredients or dishes must be delivered with some indications on their nutritive value.
Oriental taste:Exotic and faraway regions bring some flavor and taste thatattract the french consumer.
Field and agriculture good practices:French consumer will prefer products from regions with goodagriculture practices (size of field, storm protection for cattle, open barns, hences of trees, animal type splitting…).
Quality Food Industry - 2010 7
1.4) Your company will be an food brand
By focusing the communication on a brand linkedwith quality criteria, your company can develop itsfame and reputation of good food and agriculture for the french and European market.
Take examples of food brands like :
•« Bordeaux » brand for wine,•« Mont Saint Michel » brand for natural salt lamb,•« Poulet de Bresse » for poultry traditional farm,•Others…
The brand on quality criteria is thebest way to be know from the French and European market
Quality Food Industry - 2010 8
1.5) From brand to quality criteria and commitments
Brand
Quality criteria of the Brand (examples) :
•Good practices in the field,•Hand pick-up for preserving the natural production environment,•Conditioning in the field with small packages,•Soft cooking process to preserve vitamins.
Quality commitments of the Brand (examples) :
•Training for good practices in the field,•Workforce welfare,•Logistic for small packages,•Cooking control process.
Quality Food Industry - 2010 9
1.6) Food quality for business commitment
Food quality is a service that creates value.
With a brand, food quality has an efficient communication channel.
Value creation from food quality will drive to higher price and better margin.
This is the business commitment of your quality policy : to deliver better services to your customer and to gain betterrevenues and margins
Quality Food Industry - 2010 10
PART 2
How to do it ?
Quality Food Industry - 2010 11
2) How to do it : four steps
1.Identify the selling price for quality
2.Evaluate your business potential
3.Deploy your quality commitments
4.Build and manage your brand with qualitycommitments
Quality Food Industry - 2010 12
2.1) Identification of the selling price for quality (1)
Benchmark Price x Quality on food product (example) :
PriceProduct quality
2,5Organic apple
1,2Landscape apple
1Dessert apple (standard quality)
0,80Apple (compote)
The difference between the price for quality and the standard priceis what the customer is ready to pay for quality.
Quality Food Industry - 2010 13
2.2) Identification of the selling price for quality (2)
Benchmark Price x Quality on food product (example) :
PriceEnvironmentPackaging quality
Product quality
NoYes
NoYes
2,983,64
Organic apple
1,902,25
Land apple
11,15
Dessert apple(standard quality)
0,800,92
Apple (compote)
Price of quality is a complexe combination between the qualities ofthe product, of the packaging and of the environment
Quality Food Industry - 2010 14
2.3) Evaluate your business potential
From the benchmark information, selecte your qualitycriteria.
Evaluate the cost of your quality criteria and theinvestment for its improvement.Evaluate at this stage the opportunity of getting a label or a certificate.
Fix your selling price to be competitive and to coveryour costs and margin.
This is the business potential of your quality criteria
Quality Food Industry - 2010 15
2.4) Deploy your quality commitments
To commit on your quality criteria over time, you have to deploy Good Practices (GP), measures and checkingpoints. The best methodology is Lean Six Sigma.
This is the business commitments to your customers
Field, orchard
Harvesting
Delivery Retail
Manufacturing
Warehouse
Quality criteria monitoring
Quality Food Industry - 2010 16
2.5) Build and manage your brand
The brand is the communication channel for your qualitycommitments :
This is the proof of your business commitments to your customers
Field, orchard
Harvesting
Delivery Retail
Manufacturing
Warehouse
Quality criteria monitoring
Brand
Brand
Brand
Quality Food Industry - 2010 17
PART 3
Examples and references
Quality Food Industry - 2010 18
3.1) Type of quality in fish breeding
PricesDescriptionType ofquality
6Organic fish
4Fresh fish
1Frozen fish
Quality Food Industry - 2010 19
3.2) Quality criteria in fresh fish breeding
Criteria 1 : Natural freshwater
Criteria 2 : Rightdensity ofpopulation
Criteria 4 : Preparation in 4h
Criteria 5 : Deliveryin 12h with cold chain
Criteria 6 : Vitaminsand tasty for thecustomer
Criteria 3 : Manual handlingfor better care
Quality criteria monitoring with Lean Six Sigma method
Quality Food Industry - 2010 20
3.3) Quality criteria in mussel breeding
Criteria 1 : Naturalsea environment
Criteria 4 : Ready to cook for customer
Criteria 2 : Right density ofpale
Quality criteria monitoring with Lean Six Sigma method
Criteria 3 : Taking out « byssus »for better conservation
Quality Food Industry - 2010 21
3.4) Quality in a cooking process
HACCP procedures on cooking process
Large offer = Different Flavors for Different customers
Food safety
Food qualityFood Quality
Food Safety
Food quality
Parameters monitoring with Lean Six Sigma method
Temperature
Cooking time
Best before
Microbiology
Different cooking processesfor different flavors
Quality Food Industry - 2010 22
3.5) Our References
Lean and Six Sigma projects :•Kellogs (Six Sigma on packaging),•Britvic Soft Drink (Six Sigma on packaging and logistic),•Mars (Six Sigma on packaging),•Twining (Lean and Six Sigma on conditioning and packaging),•Virgin Drink (Lean in logistic),•Socopa (Meat processing, Traceability and Lean Management),•Fleury Michon (Six Sigma diagnostic through Consumer Help Desk),•Euroserum (Entremont) (milk processing, traceability and Six Sigma management),•Hero France (canning industry, traceability and Lean Management),•Coop de France (Agriculture whosaler, Lean management),•Rungis fishery (Quality management and Lean management).
Flexibility project on 2010:•Pharmaceutical industry (new markets),•Soft drink.
Quality Food Industry - 2010 23
PART 4
Quality Management withLean Six Sigma method
Quality Food Industry - 2010 24
4.1) Lean Six Sigma principles
Six Sigma is a quality improvement methodology based on statistical tools. The objectives of Six Sigma is to deliver « Zero-defect » to the customer.Six Sigma method started in the electronical and mechanicalindustries in the mid 1980’s.
Lean is an operational improvement methodology based on optimisation tools. The objectives of Lean is to reach the bestperformance in operational management.Lean started in the car industry in the 1990’s and is now widelyused in different industries and services.
Combining Lean and Six Sigma (Lean Six Sigma) is managingfor the customer quick delivery with no defect.Lean Six Sigma is the best method for business commitmentson quality.
Quality Food Industry - 2010 25
4.2) Managing the quality commitments with Lean Sigma
Professional buyers look for commitments on qualitycriteria.
The brand is linked with quality criteria.
Labels and certificates are a good support of brand management but don’t support the business commitment of quality
The business commitment of your criteria will bemanaged by Lean Sigma method.
Quality Food Industry - 2010 26
4.3) Labels management without Lean Sigma
Quality Food Industry - 2010 27
4.4) Labels management with Lean Sigma
Quality Food Industry - 2010 28
4.5) Advantages of a brand managed by Lean Sigma
-To be known by the foreign professionnal buyers,-To commit to the quality criteria of the brand,-To have a method’s package for implementing qualitycommitments on market criteria,-To switch from low price selling to quality priceselling and have better margins,-To have a quality image on the french and europeanmarket,
Quality Food Industry - 2010 29
4.6) Success and results of Lean Sigma methodon quality management
NUMERAL ADVANCE food industries referencesare demonstrating:
-An increase of 20 to 30% sales when promoting a global brand and global quality from an agricultural region,
-Improvement of 5 to 10% in margin introducing Lean Sigma in the management of the quality criteriacommitments.
Quality Food Industry - 2010 30
PART 5
Service offer
Quality Food Industry - 2010 31
5.1) NUMERAL ADVANCE technical proposition
NUMERAL ADVANCE experts are supplying to :
-Settle the matching between the customer’s criteria and yourcompany quality characteristic,-Establish your quality selling price,-Benchmark your company capabilities to the market criteria to establish business forecast,-Point out the key features of your company safety and qualityorganisation in order to fulfil the safety and quality criteria,-Set up the business plan of your quality policy,-Starting to build your brand.
Price (depending of the size) : starting at 10.000 Euros
Quality Food Industry - 2010 32
5.2) NUMERAL ADVANCE business proposition
After deploying the technical proposition, NUMERAL ADVANCE will market and promote your products on someof the French and European customers :
•Food processing industries,•Fast-food industries,•Catering companies,•Mass marketing companies and retailers,•Restaurants.
Promotion on the European Fair Trade (SIAL 2012, British PrivateLabel, MDD Expo…).
Price (depending of the size) : % commissions
Tracanumeral is NUMERAL ADVANCE label for tracing the quality criteria
Quality Food Industry - 2010 33
5.3) « Quality for business » programme
With the programme « Quality for Business » ofNUMERAL ADVANCE, your quality is in the business.
This is the answer to:
•How to market the value of Quality ?
•How to integrate the Quality plan into the business plan ?