Executive Summary
Lean system was released by Japan Company Toyota in 1960. Now almost all of the business implements this slim system for reducing the waste and to boost the value string. These studies provide a brief idea how we can use the low fat system. The Kellogg's is a cornflakes developing company that was founded by Will Keith Kellogg and Dr John Kellogg in Michigan USA at 1870s. It was released in market in 1906 as Kellogg's Corn flakes which was well-liked by many customers. Today Kellogg's is manufactured in 18 countries which offers its products in more than 180 countries. So using the trim system company has reduced its waste materials and improve the productivity.
1. Critically evaluate the use of slim development and/ or slim service in your choosen group.
1. Low fat productions are operation systems which boost the worthiness of company activities by detatching waste. It focuses on inventory management, eliminating waste, improved production, quality management, source chain design and constraint management. Slim system can be used by service and developing companies. Through the use of lean system group can develop top quality of goods and services at lower operation cost. The very best example of slim system can be found in Japanese vehicle company called Toyota. Toyota uses the trim system to make Toyota Development System (TPS) work effectively which really helps to reduce the waste materials and manage the inventory. The different elements of low fat system are Just with time (JIT), six sigma, and Total quality management (TQM), real human learning resource management and total preventive maintenance (TPM). The just-in-time helps to reduce the inventory cost by placing your order the products when needed. (Krajewski, Ritzman & Malhotra) pp: 316-318.
Kellogg's was founded by Will Keith Kellogg and Dr John Kellogg in Michigan USA at 1870s. It had been released in market in 1906 as Kellogg's Corn flakes that was liked by many customers. Today Kellogg's is made in 18 countries which sells its products in more than 180 countries. It is the first American company to present cereal as a breakfast and highly maintain the nutrition and quality of food built. (Kellogg's, 2011).
It targets production of cereals and treats, and frozen food as well. The business strategy is to broaden the sales of cereals and treats all over the world and expands the frozen item in THE UNITED STATES.
It also produces convenience foods such as cookies, toaster pastries, cereal bars, crackers and vegetarian food as well. Kellogg's brands are keebler, special k, Eggo, All Bran, Keep Naked, Choco's, Club, grain kipsies and Kashi.
2. Discuss and recommend how waste material can be monitored along your selected organization's value chain
2. Low fat system can be executed in Kellogg's company to lessen the waste products and reduce the inventory cost. It helps to increase the quality and beneficial of company. This technique is known as a kaizen which really is a Japanese term. The eight types of waste materials in lean system are overproduction, improper processing, waiting, travel, motion, inventory, flaws and underutilization of employees.
So we can use lean system in Kellogg's company to lessen these wastes.
Overproduction:
Overproduction of goods can create reduction to business. The produced goods have to be stock for long time which can raise the cost of possessing (inventory), and it is difficult to identify the defect in variety. Lean system suggests that company should have close relationship with the supplier so that delivery of raw materials can be on right scheduled date, short business lead time and delivery shows up with good quality. So, Kellogg's should also use JIT (just in time) approach to decrease the inventory cost.
Inappropriate processing:
Inappropriate processing means use of expensive making machines instead of simpler machine which can boost the cost of operation. So use of smaller equipment, removal of aged machines can decrease the waste and reduce the cost of operation. Lean system utilizes the utilization of pull approach to work flow. Draw method means when there exists demand then there may be processing for that demand. There may be push method also in which production is done in advance of demand. Drive method is suitable for manufacturing organizations since process involve long lead time, customer cannot wait for long time and product requires common procedures. So, Kellogg's can also use press method for digesting. Because the demand is high in context of Kellogg's Corn Flakes so company need to supply the good in advance to demand.
Waiting:
Waiting means when the product is not refined promptly. The waiting around occurs when there is momentary imbalance between demand of service and capacity of company to provide its service. It also occurs when there is certainly poor material flow; long creation run and machine aren't built in right procedure. Lean system suggests the utilization of small whole lot sizes. Small whole lot size passes the system quickly and they do not keep carefully the materials waiting. Ready problem may also happen in Kellogg's company. So to avoid these problem Kellogg's can use small great deal size that are refined together but it also need to be create in effective way. More advanced technologies can be used to processed cereals into corn flakes.
2. 4Transportation:
It is the high movement of recycleables and produced goods from dealer to company and produce to customer. Some food requires the heat range to be taken care of during travel. So these can boost the cost of transport and decrease the quality of food when it gets to to customer. Kellogg's uses TDG as a logistic experts company. But before 2008 there was another logistic provider that they dispensed due to go up in the price tag on productivity. Trim system has helped both TDG and Kellogg's practices to decrease the price by 6%. In UK the Kellogg's has manufacturing facility in Wrexham with a warehouse in it and a further ware house at Trafford Area. TDG reduced the price by storing the complete product in the warehouse and transport the required product to other shop as required.
Motion:
It is an unnecessary movement of body like bending, lifting, stretching, reaching and walking during the work. Jobs with unnecessary motion of these body parts should be redesigned to lessen the waste. There must be use of one employee, multiple machine cell workstations (OWMM). It avoids the use of many personnel in one production line which will reduce the waste materials and unnecessary action of many individuals. In OWMM an individual worker functions many indistinguishable machines to get a much better line stream of work. So Kellogg can also use these OWMM workstation cell approved by lean system to decrease the inventory and use of many workers to execute one similar activity.
Inventory:
It is a waste that occurs when the product are stored for long time in ware house. It really is due to overproduction so when waiting line increases. When there are more stocks and options in warehouse it is difficult for manufacturer to discover the defect and keep maintaining the quality of product. In the event Kellogg's which is manufacturer of cornflakes large inventory means poor quality of food which is hard to keep up the expire date of food as well. Kellogg's use Economic Order Amount (EOQ) model to order the number of materials required. In EOQ the lead time must be continuous and demand rate is assumed as constant. It helps to find the set order size which will reduce the positioning and placing your order cost of inventory. So by calculating the cost right amount of stock is purchased from supplier that may reduce the misuse of clearing the stock. (Stevenson, 2008), pp: 485-491.
Defects:
Defects are also one of the 8th wastes in slim system. Increased defect can increase the cost, inspection, and company may lose their brand image. When there is overproduction of goods company have to stock for longer period. So, when the defect is available then it is more costly to check on for defect in large quantity. By the utilization Just in time System, Company can reduce the large inventory and it's really easy to check the defect in small stock. Kellogg's also needs to implement Just with time system to keep up the inventory stock and order from supplier when needed.
Underutilization of Employees:
It really helps to reduce the throw away by providing the correct training with their employees and effective use of worker knowledge in job. Company should execute flexible workforce where staff are trained to execute more than one task. So employee can match the space of other job when they are in holiday or ill. This flexible employees also helps employee to feel boredom to do same job for long period and refreshes them. Kellogg's can also put into practice lean system which provide cross training for worker so that is capable of doing any task in several work stop.
3. In addition to above eight waste materials, lean systems also suggest FIVE S Procedures for reducing waste products and removal of needless process and activities. It helps to organize the work force environment. Corresponding to krajewski, Ritzman and Malhotra (pp: 323-325) there are five S Routines are sort, straighten, glimmer, standardize and maintain. These are as below:
3. 1 Sort:
Sorting means separation of needed items from unneeded items. When sorting is performed it helps to work with that for another process in effective way. So it saves time and boost the efficiency of process. In Kellogg's company it uses Maize (corn), glucose, wheat, wheat bran, and fruits and nuts. Farmer needs to separate the good quality of whole wheat, maize in their plantation.
3. 2 Straighten:
Straighten means every work place and recycleables should be in right place. It's easy to find the mandatory things easily. Kellogg's can use straighten to save lots of time and keep workstation in right place. Every recycleables and produced goods should be stored in right stock room and place so it's no problem finding the mandatory item when needed.
3. 3 Glow:
Shine methods to make workstation clean and tidy. By keeping the office clean it also really helps to reduce cross contamination of chemicals and boost the employee curiosity about work.
3. 4 Standardize:
Standardize means making certain rules in company to keep the workstation tidy and sorting the right products at right place.
3. 5 Sustain:
Sustain means that everyone follows the aforementioned four S practice and apply these procedures while these are in work. So Kellogg's also needs to implement the 5 S Procedures to reduce the waste, protected climate for staff and helps in effective use of lean system.
3. Measure the impact that your advice will have in your organization's tool and justify how your suggestion will ensure increased competitiveness, long-term sustainability and corporate social responsibility
4. Trim system also implements the use of total quality management (TQM). It targets increase process performance and quality. By retaining the TQM company can get better customer satisfaction, staff involvement and ongoing improvement in performance.
Customer satisfaction depends upon various anticipations like value, support and mental impression. Customers specify the grade of good through its value and exactly how much they are willing to pay. So to keep up the make of Company should concentrate on customer value. They must segment the market and know the patterns of customer. Company should apply the quick response in case some defect of the goods, they should not delayed its warranty case and misguide the client. Company should support their customer in quality and service. Kellogg's also needs to respect their customer value; they should not misguide the customer. Kellogg use nutrient fact in the outside cover of these product so that customer can know their nutritional diet in their food. In addition they use expiry particular date, ingredient of food and creation code so that if customers aren't pleased with their purchase product they can complain the company.
Employee engagement is another factor of TQM. The company can only just gain maximum productivity when their employee are effectively mixed up in process. When the internal employees produce good product then only external customers are prepared to pay for good. So company should provide training to work with the staff in effective way.
Continuous Improvement is process of ongoing improvement in procedure for doing business. It really is based on KAIZEN which really is a Japanese concept. In Kaizen improvement occurs in small period and it is implemented only if results are found to be effective so that it avoid large radical change which is more expensive. In this technique employee receive specialist so they seek to increase their performance by themselves. Staff will form a team and solve the condition which really helps to effective output.
5. 6 SIGMA
It is dependant on total quality management rules. It helps the business enterprise to sustain for longer period by lowering the merchandise defect and process variability. Six sigma briefly understands the client needs, use the factual data for business operation and reengineered the business operation as needed. It concentrate on reducing in process variance and concentrate on on centering process to meet the customer need. The six sigma model contain define, strategy, analyze, improve and control method.
Define
Measure
Analyze
Improve
Control
Fig: Six Sigma Model
5. 1 Define:
It defines the process outputs that fulfill the demand of customer satisfaction and identify the difference between processes. It uses the stream chart or process graph to obtain the right path of process.
5. 2 Measure:
It really helps to collect the data and identify the data resources.
5. 3 Analyze:
It uses all the info resources to execute process research. It uses various charts such as Pareto graph, scatter diagram and cause and result diagram for implementation. It helps to investigate in which period of business improvement is necessary and redesign of business is needed.
5. 4 Improve:
In these phase of Six Sigma execution is performed.
5. 5 Control:
It monitors the procedure so that high level of performance is retained. It control that change are done in right process plus they follow the proper way.
So Kellogg can also use Six Sigma to recognize the defect and take it off. Kellogg's can lessen the variability of developing process. It could identify the appropriate business process for producing the corn flakes in a powerful way. Kellogg's can use this Six Sigma for any manufacturing techniques.
6. Supply string Management
Consumers
Wholesaler/retailers
Transport
Manufacturers/producers
Transport /warehousing
Fig: supply chain of Kellogg's
Supply string includes the actions involved in producing and delivering a goods and services. The main objective of supply chain is to meet the client and also responding the change occurring in business. Source chain get activated when the client demand for the merchandise. Company must understand the storing and moving the merchandise effectively. Kellogg's uses the low fat system to lessen the waste that occurs in supply string. There shouldn't be more shares in the ware house which raise the cost and also increases the expense of transportation. While producing the meals the Kellogg's use the recycleables like maize, corn, grain, sweets from other company. The dealer should supply the raw materials promptly so that making can be done on time. It helps to lessen the lead time and customer can get their product on time. Kellogg's has worldwide brand name so all the actions done by manufacturing plant should not impact the surroundings. Kellogg's is person in FDF. FDF means the meals and drink federation which monitor the utilization of energy during development, how they use landfill for misuse, emission of Skin tightening and while manufacturing process and consumption of water in manufacturing process. So Kellogg's helps to slice the emission of carbon dioxide which has a bad impact on environment. Today many organizations help the environment to keep inexperienced by minimizing the emission of carbon dioxide. The supply chain helps to provide service or product to customer. In Kellogg's company it main aim is to supply the customer with good quality of food. So, it helps to increase the customer satisfaction which escalates the sales of product. So through low fat system the resource chain will be more effective and helps to raise the value chain.
4. using porter's value string as a template produce a frame work, that will assist a newly hired first line supervisor in your company with the following
A. Identify the kind of misuse in both main and support processes
B. The risk signals of each waste
C. How exactly to react to the 'danger signals'
7. Porter value chain
It is a process view of group. It is worried about managing process. Within a transformational process model there may be input, digesting process and end result of goods and services which meet the customer. The transformation process is accountable for processing the insight resources like materials, money, labor, equipment and building. This is known as value string generating a profit margin. (Porter, 1985), pp: 11-15.
Fig: Porter value chain
7. 1 The principal of Porter value chain inbound logistics, procedures, outbound logistics, marketing sales and service.
7. 1. 1 Inbound logistics
Inbound logistics means how the company makes romantic relationship with company. The supplier really helps to bring recycleables for company that can be used for handling. The Kellogg's uses TDG Company which helps to source their required recycleables. The danger sign can be long lead time and supply of less level of raw material. The Kellogg's should have close relationship with its company. So there will right amount of delivery of goods and that will reduce the throw away by retaining the inventory.
7. 1. 2 Operations
It is an activity of transforming input into output. In Kellogg's it uses various materials as insight to produce the good quality of food. For instance, it uses maize to create the corn flake. The waste materials can be overproduction and holding out lines. If Kellogg's produce more corn flakes than its capacity, it can raise the cost of inventory. So the company should use the right amount of input to fulfill the demand and respond to its danger indication.
7. 1. 3 Outbound logistics
It is in charge of delivering the produced product or services to customer or wholesaler and dealer. Transportation plays a essential role for providing the outcome. So, effective method of transportation should be used to reduce the waste. The danger indicators can be merchant or customers have to hold back for long time and can increase the cost of goods. Instead of offering the cornflake from one solitary location, Kellogg's can have many warehouses from where it can supply the cornflakes. These methods can help decrease the cost. In Kellogg's it can end result the increased loss of business. Therefore the company may loose their brand image.
7. 1. 4 Marketing and sales
In order to increase the brand image and sales company should do marketing to improve the customer. Marketing can be carried out in various methods like advertising on the net advertising or on Tv set, giving discount on various conditions and reducing the price tag on goods. Marketing really helps to raise the sales so company can make more income. The waste can be upsurge in advertising cost. So Kellogg's should use effective method of advertising plus they should not misguide the customer. Kellogg's can also put different informative information on the packaging like nutrient fact, cartoon pictures for kids etc.
7. 1. 5 Services
It is the experience done following the sales of product. For instance it could be after sales service, warrantee and make sure. Many companies have lost their sales because they fail to provide service following the product grows to to customer. So that it can be one of risk signal. Company must be sure that customer get good service even following the product is purchase by them. If a person asks for warrantee of his purchased product he must be provided the guarantee so it really helps to raise the brand image of company. Kellogg's also needs to supply the service following the product grows to to customer. Kellogg's should survey the marketplace that uses their brand so; they can know the customer preference and style.
7. 2 The extra activities of Porter value string are procurement, human being source management, technology development and infrastructure.
7. 2. 1 Procurement
It is the process of acquisition of inputs like recycleables, labor, resources necessary for the organization.
7. 2. 2 Individuals Resource Management
The HRM team is in charge of employing, recruiting and collection of people. They may be responsible for employing right able people. The HRM manager has authority to use any action for worker. The waste materials can be wrong selection of individuals by human source of information manager. In like manner avoid these wastes, Kellogg's should have separate team for controlling the human learning resource. The supervisor should provide training and bring program that helps the worker. Kellogg's can use flexible employees method where worker are trained to do various job and they can be avoided from boredom.
7. 2. 3 Technological Developments
It is the utilization of modern tools that helps the organization to get better output. Because of globalization company must have good IT infrastructure. The danger transmission can be company may lose their business and increase the cost of functioning business. Kellogg's should use latest technology because of its business operation like latest machine that assist to boost the productivity. Consumer seems much easier to do buy online rather heading to the shop. So, Kellogg's can use e-commerce for advertising their different types of output.
7. 2. 4 Infrastructures
It consists of all the office and company need required to run the business enterprise effectively. The misuse can be increase in the price of operation business if the firm has many departments than required. The effective infrastructure helps to manage the operation of business in a powerful way. So Kellogg's should use effective infrastructure for doing the business enterprise.
