Lean production concepts and principles
Executive summary
Implementation of lean a food production firm ensures that food products are produced with the customer in mind. The principle behind lean involves reduction or elimination of waste while at the same time maintaining value in products to meet the end customer needs. The concept applies to the entire production and supply chain process. Reductions of waste and value creation are based on quality, cost, delivery, safety, people, and environment as major Key Performance Indicators. There should be a common definition of value in the entire organization to prevent any conflict which may lead to products that do not meet the customer needs in the market. There are benefits resulting from lean adoption which will be achieved by addressing the various challenges related to resulting transformation.
Implementing lean in manufacturing industries and food processing industry
Background
The development of lean principles and concepts of production can be traced to the comparative study in various manufacturing, especially in the automobile industry. The emergence of the thinking can specifically be traced to the Japanese manufacturers and more so the Toyota operations and initial definition focused on having a system that allows for the creation of outputs while reducing input while at the same providing more choice for consumers. The definition had its bases on waste, which include activities that add no value for the final customer by not making the product better in terms of value. The major pillars for lean production include process management and logistics flow integration; managing employees, suppliers and teams relations; managing change from the conventional mass production (Kennedy, Plunkett, & Haider, 2013). The idea is to shift the focus from the shop floor and focusing on value and hence, extending the concept of value from manufacturing to customer needs and sources of raw materials. Lean Enterprise concept is defined as a group of functions, people and firms that are separate in relation to legal matters but operationally synchronized (Womack & Jones, 2010). In this sense, Absolute Foods would have to move from a mere focus on shop-floor in terms of minimizing waste and cost and focus on enhancing customer value through the addition of features and doing away with wasteful activities. Due to the benefits arising from lean as a powerful tool, whereby it has brought value creation in the manufacturing industries, its adoption has also been adopted in processing industries and even the service sector. However, the adoption of this tool in the food processing sector has not been given the right level of attention like in other conventional manufacturing industries (Kennedy, Plunkett, & Haider, 2013).
Review
Since innovation is among the major critical factors in productivity success, efforts in process innovation are being adopted by firms as a way of remaining competitive and producing value to the customers (Internationals FAIM Conference, & Azevedo, 2013). If Absolute Foods does not institute constant improvement in the production process, it’s likely to be stuck in the old practices. Lean tools represent the various process innovations in forms that allow continuous improvement as a major cornerstone of success. Lean processing aims at reduction of any waste in human effort and inventory, manufacturing space so as to be highly responsive to the demands of the customer and at the same time delivering products that are of high quality in an efficient manner (Panwar, Nepal, Jain, & Rathore, 2015). The implementation of lead in food manufacturing industry has been shown to increase efficiency and hence, increased quality in the manufacturing processes and the end result is increased value for the customers (Panwar et.al 2015). Making process innovation to be an important part of Absolute Foods and in paying more attention to research and development in these innovations will be a core strength of the company. Moreover, the firm will be able to serve its health and environmental concerns in waste reduction by ensuring that food products being launched are healthy for the environment. For success to be achieved in the adoption of the new process there has been the integration of the various critical factors in the manufacturing industry including lean team, waste management, and reduced consumption of various resources such as energy and water (Borges Lopes, Freitas, & Sousa, 2015).
The implementation of the lean tools in the food processing industry has been informed by various factors that relate to the internal and external necessities. The food business involves large logistics operations where huge there is shipping of large quantities of foods on a daily basis and this creates the needs for very reliable supply chains, while at the same time, products quality, price competitiveness is important for the purpose of success. Consumers are consistently inclined to high-quality foods products and the need for new healthy products which makes firms to launch new products on a regular basis (Womack & Jones, 2015). The need for increased sensitivity to environmental issues has shifted the focus of the whole process so that food processing firms are not only concerned with the raw materials but also the circumstances around which such raw materials are produced and introduced into the market. These factors make the whole production process to be a complex one and hence, necessitating innovations (Lehtinen & Torkko, 2005). The Absolute Foods Co. has to adopt lead tools in order to manage such a complex process that can also ensure it serves customers with high-value products and at the same time remaining true to its principles of healthy environment. The adoption of the lean tools will ensure that Absolute Foods remain on par with the entire industry as other food processing firms are moving away from the traditional concept of mass production. The implementation of these tools will have measurable benefits to firms and which are tangible any case. The elimination of excessive waste in raw materials at the mixing areas can be achieved even though such achievements may not be estimated in relation to cost saving. An improvement in the process yields can easily be achieved given that various activities that do not add value to customer products are done away with (Womack & Jones, 2010). For Absolute Foods, waste elimination will help the firm financially while at the same time bring about significant environmental benefits through reduction of carbon footprint. This kind of achievements aligns to the standards of the firm in regard to Animal Welfare Standards and environmental standards.
The supply chain is another critical factor in the success of firms in food processing industry and the use of lean tools to enhance the distribution process enables them to achieve the set operational standards and goals. Management of supply chain in the food processing industry has to combine efficiency and effectiveness to ensure that access to raw materials and distribution of final products for firms is not interrupted at any moment. Firms in the manufacturing sector have to balance the need for efficiency and pressures to reduce costs and at the same time manage market-driven demand for value (Christopher & Peck, 2004). Lean tools can assist in the effective management and internal processes control by ensuring that information flow is more open within the organizations and with other organizations. In the modern world where supply chains are lengthening in order to serve global markets and operations that spanning worldwide, lean tools assist in enhancing achievement of their set goals and objectives.
Absolute Foods has to ensure that production and delivery of food products are done in the right quantities, places and within the right time and in a manner that is cost-effective. Integration of the tools with their latest technology and a system that is comprehensively traceable will ensure that Absolute Foods remains true to its objective, in terms of products reaching the consumer with the highest food integrity and safety standards. An efficient supply chain process will have to combine various elements including management of related operations, logistics aspects and even marketing with inters internal process across its various functions to achieve the desired goals (Christopher & Peck, 2004). The purpose of such an idea is to have an improved product flow right from the raw materials production and finally to the market where processed goods where the consumer can access the product. Information communication technology is an important aspect of success in supply chain and which would enable the lean tools to be easily incorporated in the distribution of both raw materials and final products (Womack & Jones, 2010). Absolute Foods’ aim to assist the producers of raw materials and care for their welfare may need such innovations in speeding up the distribution process and ensuring that there is a reduction of time and resource wastage in the production and distribution of the raw materials.
Implications
The lean tools adopted by firms in the food production industry have to integrate all the factors involved including a reduction in waste of time and resources, increasing product value for customers and at the same time being alive to the environmental concerns in the surrounding in which these firms operates. The major achievement of implementing lean principles is that various benefits will be achieved with minimal investments whose payback periods are shortened into a year in most cases. In this regard, an introduction of such changes can enable Absolute Foods to minimize investments in production materials such as energy while reducing wastage such as food crumb in the machines’ conveyer belt. In addition, issues such as system congestion and which lead to time wastage can be addressed more so during peak hours and do so enhances the entire food production and processing processes. Moreover, the implementation of the lean has implications that extend beyond the processing of food products to the sourcing of raw materials and distribution of finished products to the final consumers (Womack & Jones, 2010). Given that there is an inherent interdependence between firms and various supply chains, food processing firms face various risks including food wastage to due to expiration and other damages and these can significantly be reduced to manageable levels. The predicament of having food products not reaching the intended markets at the right time and in the right form is taken care of if lean tools are implemented throughout the entire process.
On the other hand, lean can be challenging to implement in the various organizational setting with the major issue being which tool that should be applied and when they should be applied. The implementation of lean amounts to transformational or change process and change comes with various risks that can derail the achievement of the intended results. It becomes a challenge in identifying risks while trying to match the strategy of lean systems with the operations of organizations. Lean implementation involves reduction or even near eradication of storage time for both incoming materials and the finished products. The need to have a just- in –time system of ordering comes with the need for more coordination and corporation for various managers and this presents a challenge. It also may require more investment in employee development who will be involved in the implementation of such changes (Womack & Jones, 2010). Moreover, adoption of lean can require a large upfront technological investment and choose the right systems to match the changes may be an uphill task. The interruptions brought about by these changes may lead to increased pressure from management and customers and this may affect the implementation process (Womack & Jones, 2010). Such problems may be related a large amount of time required for the introduction and implementation of these changes and in gain the desired results.
Recommendations
Lean implementation can play a vital role in transforming Absolutes Foods achievements in terms of improved product value for consumers, financial benefits and attaining the set environmental standards. As in the case of UK industry, management of Absolute Foods should adopt strategies that will ensure reduction of waste, resource consumption and time. This involves designing mechanisms for reduction of wastages such as dripping of oil, preventing falling food crumb through the reduction of belt transfer during the processing of food products. The management should also ensure that new machines and their parts such as belt are installed throughout the production line to reduce wastage of food products. The management should also address high cost related to utilities by ensuring that monitoring systems are installed for reviewing and measuring usage of these utilities. The reduction of carbon waste and water loss should include placing filters and lids on cooking pans respectively. Moreover, the staff training programs implemented while alternating employees to ensure there is no interruption of the process. Such programs should also sensitize the need to embrace change and hence, reduce time wastage. The training also aligns with new technology that requires skills, especially where new, machines are automated. The assistance of experts should be sought in choosing and implementing new technology in the production process and logistics issues.
Lean principles in MacDonald’s
Value definition involves having an end user perspective in relation to a specific product that has certain capabilities that are provided at a given price and time. In an organization various departments involved in the production line may aim at varying goals and lack of coordination between such departments may lead to products that do not serve the interest of the customer leading to waste (Womack & Jones, 1996). All the thinking in the organization should start with customer value differentiation in terms of such waste. If there is conflict in value definition by different levels of production, the value may not be specified correctly leading an end product that does not sever the interest of the customer even if it is produced in an efficient way. To avoid such cases, MacDonald’s has placed great importance on teamwork to allow the involvement of all employees and even the suppliers in the food processing so as to enhance a lean culture. By integrating the input of all the involved parties in the process, every person is informed about the stages of operations. That way, a common definition of customer value is held at all levels so that there is no conflict of the desired product and this minimizes the chances of having products that do not serve the customer value needs.
Identification of the whole value systems for every product or family of the product in order to eliminate waste involves various critical activities upon which a value stream is made (Womack & Jones, 1996). The definition of the product, management of information for ordering and delivery taking and transformation of raw materials into final products involves these critical activities. When these activities are identified, other processes involved in the line of production and distribution which add not value are identified and done away with. In MacDonald’s, there was overproduction in the preparation of food products such as sandwiches which were done in batches so as to store them in warm temperatures in warming containers. This lead to a lot of wastage which also earned the firm a bad reputation and the problem had to be solved. As such, various ingredients were kept ready and their combination was only done once a customer placed an order. This ensured that there was no wastage of such foods and even time used in the preparation process. When the various ingredients are prepared, the time taken in the process is much reduced into few minutes and this has enabled a good response to the customer demands.
Coming up with a lean strategy is an important aspect in eliminating waste especially in the value chain, where a stoppage in the forward movement will lead to the occurrence of waste. This involves the creation of a certain value-stream that ensures that a product never stops in the line of production (Womack & Jones, 1996). In this case, every aspect of production and even delivery is totally harmonized with other aspects. The adoption of modern technology has ensured the creation of such stream in MacDonald, where a computer system relays information about an order that has been placed by a customer to individuals in the production line. The synchronization of the system ensures that there is no wastage of time making the entire process efficient. This also aligns with the fourth principle of making a product for a customer only when they want it.
Pursuing perfection involves setting targets for quality and continuously removing any causes of low quality while producing a certain product (Womack & Jones, 1996). While lean techniques starting to be implemented in the value stream, it becomes clear to the people involved that the process of waste reduction does not come to an end. This means that time, cost, effort, and space reduction does not cease to be an integral part of the production process since the aim is to always offer a product that will try to meet what is needed by the customer (Womack & Jones, 1996). In the case of MacDonald, the previously mentioned principles apply in the firm’s description of value stream that aims at waste identification and faster flow of value. The achievement of high quality with not possible waste is the major principle of lean and it’s realistic to say that MacDonald’s has not attained that goal. Hence, the firm is always trying to improve on value and each day getting closer to offering products that will meet the customer need and desired value.
Lean is an important philosophy that focuses on the improvement of the business process especially in processing and manufacturing industry and the basis of this improvement is waste elimination and value creation (In Chiarini, In Found & In Rich, 2016). The principle of lean moves the focus away from the internal process improvement as an end and places attention to value for the end consumer. In the regard, waste reduction and elimination mean that products are produced with minimum cost possible, at the right time, quantity and quality to serve the needs of the customer. For MacDonald’s, attention is placed on the end consumer of its products and this ensure that products that serve the specific interest of its customers are produced. This means that there is an improved level of customer services which eventually leads high satisfaction and hence better performance of the firm in the market and profitability. Organizations that have harmonized process are able to have the same definition of value along the whole line of production which helps to reduce any conflict in product specification (In Chiarini, In Found & In Rich, 2016). Hence, all efforts are directed towards a similar goal in terms of value and this means that customer needs are addressed before a product is launched into the market. Reduction or elimination of waste ensures that cost reduction in the production process is achieved and this has a direct impact on the profitability of a firm. When value creation is the goal of a firm, attracting and maintaining customers becomes easy.
References
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