Kellogg munoz, stein case study 2010 (1)

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  • ANTECEDENTES Líder Mundial en fabricación de cereal listo para comer. Algunas marcas: Kellogg's ® , Keebler ® , Pop-Tarts ® , Eggo ® , Cheez-It ® , Club ® , Gardenburger ® , Nutri-Grain ® , Rice Krispies ® , Special K ® , All-Bran ® , Mini-Wheats ® , Morningstar Farms ® , Famous Amos ® , Ready Crust ® and Kashi ® . Sede: Battle Creek – Michigan Ventas 2008: mas de USD 12 mil millones 4 Plantas en Mexico: Queretaro, Linares, Toluca y Mexicali Our Company Consumers around the world enjoy Kellogg Company products, one of which – Kellogg’s Corn Flakes® – has been part of a wholesome, delicious morning for more than a century. Our company began with only 44 employees in Battle Creek, Michigan, in 1906. Today we employ nearly 32,000 people, manufacture in 19 countries and sell our products in more than 180 countries around the world. For more than 100 years, innovation and our commitment to being the best in the categories in which we compete has guided our Company. From being the first company to offer premiums in our cereal boxes to being the first to fortify our cereals, Kellogg has historically been a leader in industry, innovation and marketing. Our founder, W.K. Kellogg, had a strong commitment to nutrition, health and quality. His vision continues to drive improvement in our products and processes, with the goal of providing great-tasting, nutritious products that meet the most rigorous quality standards. With 2008 sales of nearly $13 billion, Kellogg Company is the world’s leading producer of cereal and a leading producer of convenience foods, including cookies, crackers, toaster pastries, cereal bars, frozen waffles, and meat alternatives. The company’s brands include Kellogg's ®, Keebler ®, Pop-Tarts ®, Eggo ®, Cheez-It ®, Club ®, Gardenburger ®, Nutri-Grain ®, Rice Krispies ®, Special K ®, All-Bran ®, Mini-Wheats ®, Morningstar Farms ®, Famous Amos ®, Ready Crust ® and Kashi ®.
  • ANTECEDENTES Líder Mundial en fabricación de cereal listo para comer. Algunas marcas: Kellogg's®, Keebler®, Pop-Tarts®, Eggo®, Cheez-It®, Club®, Gardenburger®, Nutri-Grain®, Rice Krispies®, Special K®, All-Bran®, Mini-Wheats®, Morningstar Farms®, Famous Amos®, Ready Crust® and Kashi® . Sede: Battle Creek – Michigan Ventas 2008: mas de USD 12 mil millones Presencia en: XXXX paises 9 Plantas en Latino América 4 Plantas en Mexico: Queretaro, Linares, Toluca y Mexicali Our Company Consumers around the world enjoy Kellogg Company products, one of which – Kellogg’s Corn Flakes® – has been part of a wholesome, delicious morning for more than a century. Our company began with only 44 employees in Battle Creek, Michigan, in 1906. Today we employ nearly 32,000 people, manufacture in 19 countries and sell our products in more than 180 countries around the world. For more than 100 years, innovation and our commitment to being the best in the categories in which we compete has guided our Company. From being the first company to offer premiums in our cereal boxes to being the first to fortify our cereals, Kellogg has historically been a leader in industry, innovation and marketing. Our founder, W.K. Kellogg, had a strong commitment to nutrition, health and quality. His vision continues to drive improvement in our products and processes, with the goal of providing great-tasting, nutritious products that meet the most rigorous quality standards. With 2008 sales of nearly $13 billion, Kellogg Company is the world’s leading producer of cereal and a leading producer of convenience foods, including cookies, crackers, toaster pastries, cereal bars, frozen waffles, and meat alternatives. The company’s brands include Kellogg's ®, Keebler ®, Pop-Tarts ®, Eggo ®, Cheez-It ®, Club ®, Gardenburger ®, Nutri-Grain ®, Rice Krispies ®, Special K ®, All-Bran ®, Mini-Wheats ®, Morningstar Farms ®, Famous Amos ®, Ready Crust ® and Kashi ®.
  • El split de trainers es como sigue:             Foundationals             Pillar Qro      14                                 5 Lin        9                                  4 Tol        7                                  3 Mxl       7 37 12 Total 47 Plant                2009     2010     2011     2012     2013 Qro                  12         7          -           -           - Lin                    8          5 Tol                    6          4 Mxl                   0          7 TOTAL              26         23
  • Hablar sobre el sindicato que llegan antes de la hora, esto es porque ellos veen beneficio para ellos cada uno
  • El split de trainers es como sigue:             Foundationals             Pillar Qro      14                                 5 Lin        8                                  4 Tol        7                                  3 Mxl       6 35 12 Total 47
  • Hablar sobre el sindicato que llegan antes de la hora, esto es porque ellos veen beneficio para ellos cada uno
  • Kellogg munoz, stein case study 2010 (1)

    1. 1. Developing a Business Process Improvement Game Plan: An Interactive Workshop <ul><li>K-Lean: A Program for Culture Change at Kellogg’s </li></ul><ul><li>Victor Munoz and Martin Stein </li></ul><ul><li>Food Manufacturing Summit </li></ul><ul><li>San Diego </li></ul><ul><li>January 31, 2011 </li></ul><ul><li>[email_address] </li></ul><ul><li>[email_address] </li></ul>
    2. 2. Our Company Sales 2009: more than USD 12 Billion Present in: 180 countries 8 Plants in Latin America
    3. 3. Kellogg K-Lean <ul><li>BACKGROUND </li></ul><ul><li>Corporate Offices: Battle Creek – Michigan, US </li></ul><ul><li>Sales 2009: more than USD $12 MM </li></ul><ul><li>Manufactures in 18 countries and marketed in more than 180 </li></ul><ul><li>8 Plants in Latin America </li></ul><ul><li>4 Plants in México: Queretaro, Linares, Toluca, Mexicali </li></ul>CONFIDENTIAL
    4. 4. Challenges <ul><li>Global economic crisis </li></ul><ul><li>Support commercial area, clients and consumer needs </li></ul><ul><li>Improve value delivery </li></ul><ul><li>Develop our people to manage the business in the future </li></ul><ul><li>Create the future and deliver the results today </li></ul>
    5. 5. Culture Change <ul><li>Defining Goals, KPI’s and Metrics </li></ul><ul><li>Motivation of Organization to Accept Culture Change </li></ul><ul><li>Creating Standardized Training, Definitions and Implementation Strategy </li></ul><ul><li>Building Internal Capability and Training Infrastructure </li></ul><ul><li>Program Operation Utilizing Automated System for Reporting, Data Base on Best Practices and Sharing of Results on an Ongoing Basis </li></ul><ul><li>Accelerating Cost Savings in Years 1 and 2 </li></ul><ul><li>Building the Business Case </li></ul>
    6. 6. Creating The Future <ul><li>It is not about the WHAT </li></ul><ul><li>It is about the HOW </li></ul><ul><li>Strategic decision: </li></ul>® ®
    7. 7. <ul><li>Standard way to quantify GOOD </li></ul><ul><li>How to implement step by step? </li></ul><ul><li>With so many opportunities which one comes first? </li></ul>TRACC CONFIDENTIAL
    8. 8. <ul><li>ACTUAL SITUATION </li></ul><ul><li>Queretaro Plant: </li></ul><ul><ul><li>Started up April 2009 </li></ul></ul><ul><ul><li>Special challenge in time in order to deliver results in short time </li></ul></ul><ul><ul><li>Pilot lines in Process and in Packing </li></ul></ul><ul><li>Toluca / Linares Plants: </li></ul><ul><ul><li>Started up in May 2009 </li></ul></ul><ul><ul><li>Toluca: pilot line </li></ul></ul><ul><ul><li>Linares: Big Bang (Total Plant) </li></ul></ul><ul><li>Mexicali Plant: </li></ul><ul><ul><li>Started up December 2009 </li></ul></ul>The Kellogg K-Lean process and how they develop their people CONFIDENTIAL
    9. 9. <ul><li>LEARNINGS </li></ul><ul><li>Company commitment </li></ul><ul><li>Communication, communication, communication </li></ul><ul><li>Openness to change. The hardest change is not on the Plant floor, it is with the middle management </li></ul><ul><li>EMPOWERMENT, EMPOWERMENT, EMPOWERMENT </li></ul><ul><li>The objective is not to get there, it is the JOURNEY </li></ul>The Kellogg K-Lean process and how they develop their people CONFIDENTIAL
    10. 10. <ul><li>ACHIEVEMENTS </li></ul><ul><li>Training with internal trainers </li></ul><ul><li>Querétaro </li></ul><ul><ul><li>20 certified trainers </li></ul></ul><ul><ul><li>242 participants </li></ul></ul><ul><ul><li>50,000 hr/labor of training in 3 weeks </li></ul></ul><ul><li>Linares </li></ul><ul><ul><li>13 certified trainers </li></ul></ul><ul><ul><li>500 participants </li></ul></ul><ul><ul><li>150,000 hr/labor of training </li></ul></ul><ul><li>Toluca </li></ul><ul><ul><li>10 certified trainers </li></ul></ul><ul><ul><li>100 participants </li></ul></ul><ul><ul><li>30,000 hr/labor of training </li></ul></ul><ul><li>Mexicali </li></ul><ul><ul><li>7 certified trainers </li></ul></ul>The Kellogg K-Lean process and how they develop their people CONFIDENTIAL
    11. 11. <ul><li>ACHIEVEMENTS </li></ul><ul><li>Common language, more “eyes” eliminating waste </li></ul><ul><li>Increasing throughput </li></ul><ul><ul><li>Packing capacity increase of 4% annual </li></ul></ul><ul><li>Dead times reduction (cleaning, fumigation) </li></ul><ul><ul><li>40% time reduction during fumigation </li></ul></ul><ul><ul><li>66% time reduction on dryer clean up </li></ul></ul><ul><li>Union Full support (People willing to arrive early for Shift Handover) </li></ul>The Kellogg K-Lean process and how they develop their people CONFIDENTIAL
    12. 12. Creating The Future <ul><li>With the good results from previous years, how to keep improving…. </li></ul><ul><li>Where should we start? </li></ul><ul><li>With so many options, what is it the right choice? </li></ul>
    13. 13. Envision World Class
    14. 14. Manage Change CONFUSI ON ANXIETY RESISTANCE FRUSTRATION TREADMILL VISION SKILLS INCENTIVES RESOURCES ACTION PLAN
    15. 15. TRACC <ul><li>Quantitative Standards </li></ul><ul><li>Step by step Implementation </li></ul><ul><li>Systemic and sustainable approach </li></ul><ul><li>Avoid shortcuts and reliance on traditional consulting approach </li></ul>
    16. 16. Implementation Roadmap
    17. 17. Learnings <ul><li>Company commitment </li></ul><ul><li>Communication, communication, communication </li></ul><ul><li>The hardest change is not on the plant floor, it is with the middle management </li></ul><ul><li>Empowerment, empowerment, empowerment </li></ul><ul><li>Coaching, coaching, coaching </li></ul>
    18. 18. People Development <ul><li>How to maintain K-lean path, time table, passion, etc.? </li></ul><ul><li>How to maintain the knowledge? </li></ul><ul><li>How ensure new people get on board and do not slow down the boat? </li></ul><ul><li>What support the plant should have/need? </li></ul><ul><li>How to create K-Lean bench? </li></ul>
    19. 19. People Development <ul><li>Training with internal trainers </li></ul>
    20. 20. People Development <ul><li>System leverage between plants </li></ul><ul><li>Role evolution </li></ul><ul><li>Additional work vs. transformation of current activities </li></ul><ul><li>Link results with behavior and skills </li></ul><ul><li>Proud of our products and workplace </li></ul>
    21. 21. Delivering Results <ul><li>Patience, patience, patience </li></ul>
    22. 22. Delivering Results <ul><li>Common language, more “eyes” eliminating waste </li></ul><ul><ul><li>43% waste reduction on corn line </li></ul></ul><ul><li>Increasing throughput </li></ul><ul><ul><li>Packing capacity increase of 4% annual </li></ul></ul><ul><li>Time reduction </li></ul><ul><ul><li>40% during fumigation </li></ul></ul><ul><ul><li>66% on dryer clean up </li></ul></ul><ul><ul><li>60% on changeovers </li></ul></ul><ul><li>Union full support </li></ul>
    23. 23. Next Steps <ul><li>Consolidate and sharpen our manufacturing operating model </li></ul><ul><li>Deployment in Venezuela, Ecuador, India and Australia </li></ul><ul><li>Strengthen expansion of K-Lean beyond manufacturing </li></ul><ul><li>Align our execution to the commercial function </li></ul><ul><li>Become a talent powerhouse </li></ul>
    24. 24. Our Success History Is Just Beginning <ul><li>No incremental headcount </li></ul><ul><li>Implementation vs. Transformation </li></ul><ul><li>Leadership and Managing Change is the FOUNDATIONAL practice </li></ul><ul><li>Mindsets and behaviors act on the speed and rhythm </li></ul>
    25. 25. ® ®
    26. 26. The Kellogg K-Lean TEAM CONFIDENTIAL
    27. 27. Business Case Study Calculator <ul><li>Current Plant Output per Year </li></ul><ul><li>______________________________________ </li></ul><ul><li>Current Dollar Value of Plant Output per Year per Ton </li></ul><ul><li>______________________________________ </li></ul><ul><li>Current Level of Operating Efficiency </li></ul><ul><li>______________________________________ </li></ul><ul><li>Projected Level of Operating Efficiency </li></ul><ul><li>______________________________________ </li></ul><ul><li>Change in Operating Efficiency </li></ul><ul><li>______________________________________ </li></ul><ul><li>Multiply Change Times Dollar Value Times Increased Plant Output </li></ul><ul><li>______________________________________ </li></ul><ul><li>Expected Benefits per Year </li></ul><ul><li>______________________________________ </li></ul>
    28. 28. Example <ul><li>Current Plant Output per Year </li></ul><ul><li>__________100 Million Tons____________________________ </li></ul><ul><li>Current Dollar Value of Plant Output per Year per Ton </li></ul><ul><li>___________$ 360,000___________________________ </li></ul><ul><li>Current Level of Operating Efficiency </li></ul><ul><li>____________88%__________________________ </li></ul><ul><li>Projected Level of Operating Efficiency </li></ul><ul><li>____________93%__________________________ </li></ul><ul><li>Change in Operating Efficiency </li></ul><ul><li>______________5%________________________ </li></ul><ul><li>Multiply Change Times Dollar Value Times Increased Plant Output </li></ul><ul><li>______________5 X 5 Million Tons________________________ </li></ul><ul><li>Expected Benefits per Year </li></ul><ul><li>_______________$ 1.8 Million_______________________ </li></ul>
    29. 29. CONTACT <ul><li>Martin Stein </li></ul><ul><li>Vice President </li></ul><ul><li>Competitive Capabilities International </li></ul><ul><li>+1 617 755 1960 </li></ul><ul><li>[email_address] </li></ul>

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