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DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
DMAIC "Catapults" Continuous Improvement at Hormel
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DMAIC "Catapults" Continuous Improvement at Hormel

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  • 1. DMAIC Methodology “Catapults” Continuous Improvement Hormel Foods
  • 2. Agenda <ul><li>Hormel Foods, Inc. </li></ul><ul><li>History of QIP  Six Sigma </li></ul><ul><li>CIP Reinvigoration </li></ul><ul><li>Variation Tool – Catapult </li></ul><ul><li>Questions </li></ul>
  • 3. Getting Started in 1891 <ul><li>Geo. A Hormel & Company Pork Packers and Provision Dealers </li></ul><ul><li>Founded in Austin, MN - 1891 </li></ul><ul><li>Processed 610 hogs in the first year </li></ul><ul><li>$220,000 in sales </li></ul>
  • 4. 118 Years Later……. <ul><li>Fortune 500 Company </li></ul><ul><li>Over 18,000 Employees </li></ul><ul><li>Over 2,100 Food products </li></ul><ul><li>Over 350 Trademarks </li></ul><ul><li>Internationally recognized </li></ul><ul><li>Process over 9.0 million hogs annually </li></ul><ul><li>Process 1.23 billion pounds of turkeys annually </li></ul>
  • 5. <ul><li>Bacon • Pork • Shelf Stable Products </li></ul><ul><li>Precooked Pre-portioned Chili </li></ul><ul><li>Raw Precooked Corned Beef Hash </li></ul><ul><li>Bits Flavored Stews </li></ul><ul><li> Always Tender Cooked Meats </li></ul><ul><li>Ham Salsas/Sauces </li></ul><ul><li>Smoked • Dry Sausage Asian Sauces </li></ul><ul><li>Cooked Pepperoni (House of Tsang) </li></ul><ul><li> Genoa Salami SPAM </li></ul><ul><li> Hard Salami </li></ul><ul><li>Turkey • Cooked Beef </li></ul><ul><li>Whole </li></ul><ul><li>Further Processed • Bread Ready Meats </li></ul>Core Competencies
  • 6. Hormel Foods Corporation Retail Brands
  • 7. RECENT ACQUISITIONS Alma Foods – Alma, KS CPC – Farmer John, Vernon, CA Lloyd’s BBQ – Mendota Heights, MN Mark-Lynn Foods – Bremen, GA Mexican Accent – New Berlin, WI Provena Foods – Lathrop, CA Saag’s – San Leandro, CA Valley Fresh – Turlock, CA 8 CO-PACKERS - All Hormel Manufacturing, Distribution Center & Co-packer Locations (142) JOTS JOTS – Barron, WI JOTS – Faribault, MN JOTS – Melrose, MN JOTS – Montevideo, MN JOTS – Pelican Rapids, MN JOTS – Willmar, MN 2 CO-PACKERS - SPECIALTY FOODS CFI – Sparta, WI DCB – Bondurant, IA DCB – Mitchellville, IA DCB – Perrysburg, OH DCB – Savannah, GA DCB – Visalia, CA HHL – Quakertown, PA 22 CO-PACKERS - HORMEL Algona, IA Atlanta, GA Austin, MN Beloit, WI CCPC - Aurora, IL Dold Foods - Wichita, KS Fremont, NE Fort Dodge Foods - Fort Dodge, IA Knoxville, IA Osceola Foods - Osceola, IA Rochelle Foods - Rochelle, IL Stockton, CA DAN’S PRIZE SUBSIDIARY Dan’s Prize – Browerville, MN Dan’s Prize – Long Prairie, MN 71 CO-PACKERS - Campbell Soup Macphie Herdez Du Breton Farms Carapelli Pelopac DISTRIBUTION CENTERS Atlanta, GA LSI – Eldridge, IA Osceola Foods - Osceola, IA Power Logistics – Dayton, OH Prism – Stockton, CA
  • 8. International Partners Hormel Alimentos S.A.Mexico Blue Ribbon Panama Tulip Ltd. Denmark Beijing Hormel Foods Co., Ltd. China Shanghai Hormel Foods Co., Ltd. China C.J. Corp. Korea Australia Purefoods-Hormel Philippines San Miguel Hormel Vietnam Okinawa Hormel, Ltd.
  • 9. AGENDA - Continued <ul><li>Hormel Foods, Inc. </li></ul><ul><li>History of QIP  Six Sigma </li></ul><ul><li>CIP Reinvigoration </li></ul><ul><li>Variation Tool – Catapult </li></ul><ul><li>Questions </li></ul>
  • 10. Hormel - Heritage “ We should all go to our posts of duty daily with the feeling the work can be done still a little bit finer, a little bit better than we are doing it.” - George A. Hormel
  • 11. <ul><li>Fourteen principals of quality </li></ul><ul><li>(simplified to six in 2008) </li></ul><ul><li>Quality Improvement Teams at each Plant location </li></ul><ul><li>Education & Training </li></ul><ul><li>5 Fundamentals of quality management </li></ul><ul><li>(next slide) </li></ul>Quality Improvement Process (QIP) - 1986
  • 12. Five Fundamentals of Quality Management <ul><li>The five fundamentals every employee must know and understand: </li></ul><ul><li>1 - Definition of quality is conformance to customer requirements </li></ul><ul><li>2 - System of quality is prevention and continuous improvement </li></ul><ul><li>3 - Performance standard is zero defects </li></ul><ul><li>4 - Measurement is price of nonconformance (PONC) </li></ul><ul><li>5 - All work is a process (process optimization) </li></ul>
  • 13. QIP Process – early 2000’s <ul><li>Established QIP - Quality Improvement Process </li></ul><ul><li>Plant specific issues: </li></ul><ul><ul><ul><ul><li>Productivity, Quality, Yields, Safety </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Communications, Employee Morale </li></ul></ul></ul></ul><ul><li>But… we wanted more! </li></ul>
  • 14. Objective – Continuous Improvement <ul><li>Compliment to existing QIP efforts. </li></ul><ul><ul><ul><li>not replace it </li></ul></ul></ul><ul><li>Provide a method for a systematic analysis and </li></ul><ul><li>improvement of key business processes. </li></ul><ul><ul><ul><li>facts and data – not emotion </li></ul></ul></ul><ul><li>Be the best we can be in every business process. important to the Customer </li></ul><ul><li>Target projects that will have substantial </li></ul><ul><li>favorable financial impact. </li></ul><ul><ul><ul><li>major consideration for project selection </li></ul></ul></ul>
  • 15. <ul><li>QIP Steering Committee - Research </li></ul><ul><li>- Six Sigma was getting a lot of attention </li></ul><ul><li>- Success by other companies/industries </li></ul><ul><li>- Business publications, consultants </li></ul><ul><li>- Benchmarked with other companies </li></ul><ul><li>Began the Process in 2002: </li></ul><ul><li>- Selected the Juran Institute as consultant </li></ul><ul><li>- Juran spent 1 day with executives (approval) </li></ul><ul><li>- Juran started certification process for BB’s </li></ul>Objective – Continuous Improvement
  • 16. <ul><li>Roles and Responsibilities: </li></ul><ul><li>Champions (34) </li></ul><ul><li>QIP Steering Committee </li></ul><ul><li>Black Belts </li></ul><ul><li>Team Member Experts </li></ul><ul><li>Ad-hoc team members </li></ul>Six Sigma - Corporate Deployment
  • 17. Six Sigma - Corporate Deployment Process Champion submits project ideas Steering Committee selects projects. Projects are assigned to “Black Belts” Cross-functional “Team Member Experts” D M A I C PROCESS Define, Measure, Analyze, Improve, Control
  • 18. Six Sigma - Corporate Deployment Complete Project List Transactional Administrative Operational Freight & Warehouse Order Processing Turkey Improvement - JOTS Project Enterprise Procurement and A/P G.P. SKU Rationalization Pre-cooked Bacon R&D NPD Forecasting Damage & Unsaleables Foodservice Pricing Deduction Resolution Master Records RF SKU Rationalization Deductions CFI Cost Reduction GP Foreign Material Austin Blues - Pulled Chicken Tray Optimization Inventory Reduction R&D Lab Services Dubuque Data Collection Pepperoni Cupping CPS Work Load Model Label Verification Foodservice Pricing JOTS - Livability Pallets Analysis Broker Utilization Bracket Pricing
  • 19. Six Sigma - Corporate Deployment Six Sigma Scorecard
  • 20. Six Sigma - Corporate Deployment Bill Snyder Senior Vice President of Supply Chain Rod Kekkonen Director of I.E. 55 IE’s 25 Plants 6 Corp. Staff IE’s 7 Co. Certified Black Belts Bryan Farnsworth V.P. of Quality Management 11 Co. Staff QC Eng.
  • 21. Six Sigma - Corporate Deployment (2008) Bill Snyder Senior Vice President of Supply Chain Scott Christensen Director of I.E./Six Sigma 55 IE’s 25 Plants 1 Co. IE Mgr. 6 Co. Staff IE’s 7 Co. Certified Black Belts
  • 22. AGENDA - Continued <ul><li>Hormel Foods, Inc. </li></ul><ul><li>History of QIP  Six Sigma </li></ul><ul><li>CIP Reinvigoration </li></ul><ul><li>Variation Tool – Catapult </li></ul><ul><li>Questions </li></ul>
  • 23. Catapult Firing
  • 24. Mission/Vision/Values = Our Way <ul><ul><li>CEO – Jeff Ettinger: </li></ul></ul><ul><li>“ Over the past 10 years, the size of our team has nearly doubled, and we have begun to grow internationally as well. Our growth has provided us an opportunity to refresh our mission and remind everyone how we strive to do business at Hormel Foods. </li></ul><ul><li>This new program, called Our Way , is a clear, systematic and straightforward way to show our priorities and how we operate. Our Way represents a vision for the future as we continue to grow our heritage.” </li></ul>
  • 25. Corporate Reporting Responsibilities <ul><li>Principles </li></ul><ul><li>Brand charity programming (like Komen) </li></ul><ul><li>Community investments </li></ul><ul><li>Educational giving </li></ul><ul><li>Hunger work </li></ul><ul><li>Major gifts (Hormel Institute) </li></ul><ul><li>People </li></ul><ul><li>Code of conduct </li></ul><ul><li>Diversity </li></ul><ul><li>Employee wellness programming </li></ul><ul><li>Safety </li></ul><ul><li>Training and employee benefits </li></ul><ul><li>Products </li></ul><ul><li>Food quality </li></ul><ul><li>Food safety </li></ul><ul><li>Health and wellness brand programs </li></ul><ul><li>Performance </li></ul><ul><li>Corporate governance </li></ul><ul><li>Financial sustainability (innovation pipeline) </li></ul><ul><li>Process </li></ul><ul><li>Air quality efforts </li></ul><ul><li>Animal welfare management </li></ul><ul><li>Energy use reduction </li></ul><ul><li>Solid waste and recycling </li></ul><ul><li>Water use reduction & system protection </li></ul>
  • 26. Leveraging a Continuous Improvement Culture DMAIC RELIABILITY Safety SQM CIP OEE Yields Productivity Environmental Sustainability
  • 27. What’s the FIT? <ul><li>Don’t have time for all of this, I need to focus on my job ! </li></ul><ul><li>Where do we apply our resources – only have so much time and so many people ! </li></ul><ul><li>Don’t need more, need focus on what we have ! </li></ul><ul><li>Is this just the same old QIP, but now called CIP ? </li></ul><ul><li>I’ve got Reliability, how does CIP fit into this initiative ? </li></ul><ul><li>We already have goals and objectives which drive our efforts ! </li></ul>
  • 28. <ul><li>The Continuous Improvement Process: </li></ul><ul><li>CIP is not an additional or separate initiative. </li></ul><ul><li>CIP is a way of bringing our processing objectives together in one focus. </li></ul>The FIT is…….
  • 29. CIP Competencies <ul><li>1 - Teamwork </li></ul><ul><li>2 - Setting Goals and Objectives </li></ul><ul><li>3 - Problem Solving – DMAIC Process </li></ul><ul><li>4 – Team Recognition </li></ul>
  • 30. 1 - Teamwork I. Teamwork Guidelines II. Meeting Mechanics III. Team Leader Role IV. Team Member Role
  • 31. 2 - Setting Goals and Objectives Company-Wide Goals 5, 10, 2-12, <1, <3.5% Division Department Team Goals Vision Priority C I P Personal Objectives
  • 32. <ul><li>Goal: Develop DMAIC problem solving competency at the plant locations. </li></ul><ul><ul><li>Conducted three – two day sessions </li></ul></ul><ul><ul><li>Trained 50 employees </li></ul></ul><ul><ul><li>Working on 40 improvement projects </li></ul></ul>3 – Problem Solving DMAIC Process
  • 33. 3 – Problem Solving DMAIC Process Define: Define project and who will work on it Measure: Present Performance and possible causes of performance levels Analyze: Identify key process problems Improve: Optimize process performance Control: Hold the gains Six Sigma Methodology (DMAIC)
  • 34. 3 – Problem Solving DMAIC Process Define: Project Charter, SIPOC , Process Mapping, VOC , CTQ’S (critical to quality), Measure: Y & X’s, Micro Mapping, Data Collection Plan , Graphing, Six Sigma Defect Rate Analyze: FMEA, Hypotheses Tests, Question ‘Who, What, Where, and How ’, Data Validation , GOYA Improve: Solutions - establish alternatives , Assess Risk, Design of Experiments, Simulations Control: Implementation of Solutions, Time Lines, Savings, Feedback to Project Owner’s, SOP’s, Measurement Six Sigma Methodology (DMAIC Tool Box)
  • 35. 3 – Problem Solving DMAIC Process Select Project Define Project Scope and Size Measure Analyze Problem Cause Map Improve Control Solutions Small Problem Utilize Task Force “ RCA” Small Project Persistent Team Needed DMAIC Used Large Problem Chronic Problem Impacts Plant Cross-Functional Team DMAIC Used Measure Analyze Improve Control
  • 36. 3 – Problem Solving DMAIC Process <ul><li>Methodology: </li></ul><ul><ul><li>Plant Managers Select Projects & Participants </li></ul></ul><ul><ul><li>Participants Research & Collect Project Information </li></ul></ul><ul><ul><li>Attend Training & Apply DMAIC Tools </li></ul></ul><ul><ul><li>Plant Managers Schedule Monthly Updates </li></ul></ul><ul><ul><li>Monthly Six Sigma Team Conference Calls with Participants </li></ul></ul><ul><ul><li>Document Project Progress </li></ul></ul><ul><ul><li>Complete Projects in Six Months </li></ul></ul><ul><ul><li>Debrief Projects </li></ul></ul><ul><ul><li>Start a Second Project in 2009 </li></ul></ul><ul><ul><li>Serve as a Problem Solving Resource, 2009 </li></ul></ul><ul><ul><li>Best of the Best 2009 Project Recaps Include DMAIC </li></ul></ul>
  • 37. 4 – Team Recognition <ul><li>Goal: Linkage to the “BOB” </li></ul><ul><ul><li>(BOB - Best of the Best) </li></ul></ul><ul><li>Application to CIP competencies </li></ul><ul><li>Connect to Corporate initiatives </li></ul><ul><li>Recognition of winners </li></ul><ul><li>+ 400 projects at Plant level </li></ul><ul><li>Select Enterprise Winner </li></ul>
  • 38. Agenda <ul><li>Hormel Foods, Inc. </li></ul><ul><li>History of QIP  Six Sigma </li></ul><ul><li>CIP Reinvigoration </li></ul><ul><li>Variation Tool – Catapult </li></ul><ul><li>Questions </li></ul>
  • 39. How To Reduce Variation & Turn An Art Into Science
  • 40. Process Flow Gas Mileage Driving to Work
  • 41. Process Flow - Catapult
  • 42. Cause & Effect Gas Mileage Driving to Work
  • 43. Cause & Effect - Catapult
  • 44. Continuous Improvement Process <ul><li>Catapult Questions? </li></ul>
  • 45. Agenda <ul><li>Hormel Foods, Inc. </li></ul><ul><li>History of QIP  Six Sigma </li></ul><ul><li>CIP Reinvigoration </li></ul><ul><li>Variation Tool – Catapult </li></ul><ul><li>Questions </li></ul>
  • 46. Continuous Improvement Methodologies <ul><ul><ul><li>Scientific Management </li></ul></ul></ul><ul><ul><ul><li>Shewart’s Control Charts </li></ul></ul></ul><ul><ul><ul><li>TQC </li></ul></ul></ul><ul><ul><ul><li>JTQM </li></ul></ul></ul><ul><ul><ul><li>Deming Prize </li></ul></ul></ul><ul><ul><ul><li>QC Circles </li></ul></ul></ul><ul><ul><ul><li>Juran Trilogy </li></ul></ul></ul><ul><ul><ul><li>Lean (TPS) </li></ul></ul></ul><ul><ul><ul><li>TPM </li></ul></ul></ul><ul><ul><ul><li>Zero Defects </li></ul></ul></ul><ul><ul><ul><li>Industrial Engineering </li></ul></ul></ul><ul><ul><ul><li>Six Sigma/DMAIC </li></ul></ul></ul><ul><ul><ul><li>TQM </li></ul></ul></ul><ul><ul><ul><li>MBNQA </li></ul></ul></ul><ul><ul><ul><li>ISO </li></ul></ul></ul><ul><ul><ul><li>BPR </li></ul></ul></ul><ul><ul><ul><li>Workout </li></ul></ul></ul><ul><ul><ul><li>Process Management </li></ul></ul></ul><ul><ul><ul><li>Balance Scorecard </li></ul></ul></ul><ul><ul><ul><li>DMADV </li></ul></ul></ul><ul><ul><ul><li>Reliability/RCA </li></ul></ul></ul>
  • 47. Continuous Improvement Deployment Criteria 1.) Top Down Commitment 2.) Linkage to Co. Goals and Strategy 3.) Personnel selection and training 4.) Common Methodology 5.) Project Selection “scope” 6.) Financial budgeting and auditing 7.) Project reviews and tracking 8.) Communication and recognition

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