Quality_Food_Industry_2011

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 the
European market.

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

PART 1
Why to do it ?

1.1) Why to do it : food quality for business
improvement
Food quality has a wider scope than food safety. Food
safety is part of food quality.
Food quality will drive to:
-Higher prices,
-Better margins,
-Better revenues.
Food Quality
Food Safety

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…

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 that
attract the french consumer.
Field and agriculture good practices:
French consumer will prefer products from regions with good
agriculture practices (size of field, storm protection for cattle,
open barns, hences of trees, animal type splitting…).

1.4) Your company will be an food brand
By focusing the communication on a brand linked
with quality criteria, your company can develop its
fame 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 the
best way to be know from the French
and European market

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.

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 better
revenues and margins

PART 2
How to do it ?

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 quality
commitments

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 price
is what the customer is ready to pay for quality.

2.2) Identification of the selling price for quality (2)
Benchmark Price x Quality on food product (example) :
PriceEnvironmentPackaging
quality
Product quality
No
Yes
No
Yes
2,98
3,64
Organic apple
1,90
2,25
Land apple
1
1,15
Dessert apple
(standard quality)
0,80
0,92
Apple (compote)
Price of quality is a complexe combination between the qualities of
the product, of the packaging and of the environment

2.3) Evaluate your business potential
From the benchmark information, selecte your quality
criteria.
Evaluate the cost of your quality criteria and the
investment 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 cover
your costs and margin.
This is the business potential of your quality criteria

2.4) Deploy your quality commitments
To commit on your quality criteria over time, you have
to deploy Good Practices (GP), measures and checking
points. 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

2.5) Build and manage your brand
The brand is the communication channel for your quality
commitments :
This is the proof of your business commitments to your customers
Field, orchard
Harvesting
Delivery Retail
Manufacturing
Warehouse
Quality criteria monitoring
Brand
Brand
Brand

PART 3
Examples and references

3.1) Type of quality in fish breeding
PricesDescriptionType of
quality
6Organic fish
4Fresh fish
1Frozen fish

3.2) Quality criteria in fresh fish breeding
Criteria 1 :
Natural fresh
water
Criteria 2 : Right
density of
population
Criteria 4 :
Preparation in 4h
Criteria 5 : Delivery
in 12h with cold chain
Criteria 6 : Vitamins
and tasty for the
customer
Criteria 3 :
Manual handling
for better care
Quality criteria monitoring with Lean Six Sigma method

3.3) Quality criteria in mussel breeding
Criteria 1 : Natural
sea environment
Criteria 4 : Ready to
cook for customer
Criteria 2 : Right density of
pale
Quality criteria monitoring with Lean Six Sigma method
Criteria 3 : Taking out « byssus »
for better conservation

3.4) Quality in a cooking process
HACCP procedures on cooking process
Large offer = Different Flavors for
Different customers
Food safety
Food quality
Food Quality
Food Safety
Food quality
Parameters monitoring with Lean Six Sigma method
Temperature
Cooking time
Best before
Microbiology
Different cooking processes
for different flavors

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.

PART 4
Quality Management with
Lean Six Sigma method

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 mechanical
industries in the mid 1980’s.
Lean is an operational improvement methodology based on
optimisation tools. The objectives of Lean is to reach the best
performance in operational management.
Lean started in the car industry in the 1990’s and is now widely
used in different industries and services.
Combining Lean and Six Sigma (Lean Six Sigma) is managing
for the customer quick delivery with no defect.
Lean Six Sigma is the best method for business commitments
on quality.

4.2) Managing the quality commitments with Lean
Sigma
Professional buyers look for commitments on quality
criteria.
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 be
managed by Lean Sigma method.

4.3) Labels management without Lean Sigma

4.4) Labels management with Lean Sigma

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 quality
commitments on market criteria,
-To switch from low price selling to quality price
selling and have better margins,
-To have a quality image on the french and european
market,

4.6) Success and results of Lean Sigma method
on quality management
NUMERAL ADVANCE food industries references
are 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 criteria
commitments.

PART 5
Service offer

5.1) NUMERAL ADVANCE technical proposition
NUMERAL ADVANCE experts are supplying to :
-Settle the matching between the customer’s criteria and your
company 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 quality
organisation 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

5.2) NUMERAL ADVANCE business proposition
After deploying the technical proposition, NUMERAL
ADVANCE will market and promote your products on some
of 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 Private
Label, MDD Expo…).
Price (depending of the size) : % commissions
Tracanumeral is NUMERAL ADVANCE label for tracing the quality criteria

5.3) « Quality for business » programme
With the programme « Quality for Business » of
NUMERAL 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 ?

Quality_Food_Industry_2011

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