LEAN & GREEN Restaurants (F10-1)


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LEAN & GREEN Restaurants (F10-1)

  1. 1. BA 395 – independent research<br />Tori Bybel<br />Dom DiBetta<br />Kevin Mcnavage<br />Kyle yorke<br />Dr. jenniferedmonds<br />Lean & Green Operations in Local NEPA Businesses<br />
  2. 2. Project Introduction Dr. Jennifer Edmonds<br />What does it mean to be LEAN? Kevin McNavage<br />What does it mean to be GREEN?Dom DiBetta<br />What does this mean for Restaurants?Tori Bybel<br />The Restaurant Industry - Scope of Project Kyle Yorke<br />Next Steps Dr. Jennifer Edmonds<br />Your questions are welcome at any time…<br />
  3. 3. Lean<br />Kevin McNavage<br />
  4. 4. Defining Lean<br />A systematic approach to identifying and eliminating waste (non-value-added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection<br />
  5. 5. Lean = Eliminating Waste<br />Non-Value Added (downtime)<br /><ul><li>Defects
  6. 6. Overproduction
  7. 7. Waiting
  8. 8. Not utilizing employees (People Waste)
  9. 9. Transportation
  10. 10. Excess Processing
  11. 11. Motion Waste
  12. 12. Space</li></ul>*Typically 95% of lead time<br /> is non-value added*<br />
  13. 13. Definition of Value Added<br />Value added- Any activity that increases the market form or function of a product or service. (Things customers are willing to pay for)<br />Non-Value-Added- Any activity that does not increase the market form or function & is unnecessary ( These should be eliminated, simplified, reduced, or integrated)<br />
  14. 14. Beginning of Lean<br />Born in 1914 with Henry Ford’s Motor Company<br />Mass Production Assembly Line (Batch Processing)<br /> - Production at rapid rate<br />What about the customer?<br /> - Choices<br /> - Demand<br /> - Satisfaction <br />
  15. 15. Toyota Production System(TPS)<br />Inability to compete<br /> - Lack of money & space<br />Imperative: become innovative<br />After WWII<br /> - Ford 10x more productive than Toyota<br />
  16. 16. Toyota Production System cont..<br />Revolutionizing Japanese Automotive Industry<br /> - Gap between U.S. & Japan reversed<br />Benefits to Customers<br /> - More Productive<br /> - Higher Quality<br />“One Piece Flow”<br />Doing More With Less<br />Coined “Lean Manufacturing” <br />
  17. 17. Lean Manufacturing and the 5 S’s<br />The Five Kaisen Principles<br />Sort: keep only necessary things<br />Set in order: arrange efficiently<br />Sweeping: maintain cleanliness/avoid clutter<br />Standardize: proceed efficiently<br />Sustain: cooperative working environment<br />Use Team Effort to succeed!<br />
  18. 18. Real World Examples<br />Caterpillar<br />Issue: Tools in wrong location & Wasted Time<br />Outcome with Lean Manufacturing<br /> - Millions saved in parts & labor costs<br /> - 80% Reduction in internal<br /> manufacturing lead time<br />
  19. 19. Real World Examples<br />McDonald’s<br />Issue: Overproduction and Motion Waste<br />Outcome with Lean Manufacturing<br />One Piece Flow > Batch<br />Systematic production line<br />Millions saved due to efficiency<br />
  20. 20. Keys to Sustaining Lean<br />Internalize into daily routines<br />Never ending process<br />Provide discipline/motivation/incentives<br />Visible management commitment<br />Open Communication<br />Standardize as not to slip back<br />
  21. 21. Green<br />Dom DiBetta<br />
  22. 22. What it means to “Go Green”<br />Changing global climates created awareness for mother earth.<br />Understanding what practices effect the environment<br />Make changes to benefit the environment and yourself<br />Evaluate the outcomes and continue to grow<br />
  23. 23. Green Practices for Businesses<br />Do it and do it right<br />Local, State, and Federal Laws and Regulations<br />Environmental, Health, and Safety<br />Walk the walk, Talk the talk<br />Prove what you say you have doneand will do<br />
  24. 24. Understanding The Impact<br /><ul><li>Understanding how the business affects the environment and relates to the relationships with suppliers and consumers</li></ul>What you buy, sell, and how your perform<br />Tracking Operations (day to day)<br />Utilities usage, waste management, raw materials, packaging, purchasing, emissions, inventory management<br />
  25. 25. Room for Improvement<br />Be practical and profitable<br />Benefit the business and environment<br />
  26. 26. Vision Statement<br />Idea to Implement<br />Everything you would like to see becomea reality<br />Foundation for customers, stakeholders, community,and all employees to show your willingness to investin the environment<br />Get Feedback<br />Which employees and team members are on board<br />
  27. 27. Vision Statement<br /><ul><li>EXAMPLE:</li></ul> The Company intends to respect the environment in the design, production, and distribution of its products and services, committing to be in full compliance with all laws and regulations and go above and beyond whenever possible, procedure compliance for all employees, community members, and all others to access through documented action plan.<br />
  28. 28. Make a Plan<br /><ul><li>Commit to an action plan
  29. 29. Areas to address
  30. 30. Gather support
  31. 31. Employee participation is crucial</li></ul>Promote participation, going above and beyond, and unbridled acts to the company’s vision<br />Creating incentives, rewards, and recognition plans for those who step up and take on more than what’s expected of them<br />
  32. 32. Where To Focus<br /><ul><li>Administrative Waste
  33. 33. Paper utilization
  34. 34. Using fewer products and raw materials</li></ul>Huge financial gains can be found here<br /><ul><li>Green printing</li></ul>Printing supplies and printers<br />Recycled paper<br /><ul><li>Reduce, Reuse, Recycle Culture
  35. 35. Recycling stations
  36. 36. Wasted materials are wasted money
  37. 37. Increase efficiency for all materials, get innovative</li></li></ul><li>Where To Focus<br />Purchasing<br />Commit to environmentally preferable products<br />Buy items made from recycled materials<br />Seek reconditioned, usually at a much lower cost<br />Work with suppliers to meet both of your goals<br />Understanding of the purchasing policy will ensure success<br />Rent Instead of Buying Equipment<br />Copiers, computers, ovens, etc<br />Ensures a recycling or reusing processes is in place<br />
  38. 38. Where To Focus<br />Energy Audits<br />Free or inexpensive<br />Yield huge financial savings<br />Using energy service companies that make upgrades at little or no cost to your company<br />Alternatives to toxic products<br />Cleaners, toners, glue, batteries<br />Seek out better options to reduce toxic emissions and waste accumulation<br />
  39. 39. Where To Focus<br /><ul><li>Lower Energy Needs and Consumption
  40. 40. Turn off lights in unused areas, equipment that is not in use especially during after hours and weekends</li></ul>Utilize motion sensors and timers<br />Reflectors for fluorescent fixtures, compact fluorescent bulbs instead of incandescent<br /><ul><li>Equipment and appliances</li></ul>Energy star and updated machinery to better allocate labor usage and energy consumption and space optimization<br />
  41. 41. Where To Focus<br /><ul><li>Heating and Cooling
  42. 42. Efficient Insulation of building
  43. 43. Windows and Doors</li></ul>Sealing and Retaining<br /><ul><li>Updated and efficient heating and cooling units
  44. 44. Thermal camera to evaluate energy losses</li></li></ul><li>Where To Focus<br /><ul><li>Water utilization
  45. 45. Frequent water audits to evaluate water leaks and have them repaired quickly
  46. 46. Timed irrigation
  47. 47. Create awareness among team members to use effectively
  48. 48. Low flow aerators
  49. 49. Seek out low flow appliances
  50. 50. Reuse water</li></ul>Rain water for irrigation<br />
  51. 51. Where To Focus<br /><ul><li>Transportation
  52. 52. Max MPG
  53. 53. Alternative fuel
  54. 54. Alternative travel</li></ul>Car pool, mass transit, bicycles<br /><ul><li>Upkeep on current vehicles to get the most out of them</li></ul>Tune ups, tires and tire pressure<br />Fuel additives to lower emissions and aid in consumption<br />
  55. 55. Where To Focus<br />Understanding product life-cycle<br />Know how long they are good for and good inventory management to make sure they are used before they are unusable or will run out<br />Shelf life for food<br />Expected life for uniforms<br />
  56. 56. Help Yourself and Help Others<br />Apply for corporate environmental awards to benchmark success and sustainability efforts<br />Take advantage of financial incentives to meet your goals<br /> <br />Share your experience and get more people on board by showing the possibilities<br />
  57. 57. Restaurants<br />Tori Bybel<br />
  58. 58. Four Basic Lean Principles<br />Elimination of waste<br />Increase speed and response<br />Improve quality<br />Reduced costs<br />
  59. 59. Eliminating Waste<br />Overproduction<br />Waiting time<br />Inventory<br />Motion<br />Production Defects<br />
  60. 60. Overproduction<br />Messing up orders<br />Cooking too much food<br />Wasting Material<br />All Affects Inventory<br />
  61. 61. Waiting time<br />Inflow and outflow of customers<br />Enough Waiters<br />Enough Kitchen staff<br />
  62. 62. Inventory<br />Ingredients<br />Prepared Food<br />Frozen food<br />Running out of menu options<br />
  63. 63. Motion<br />Flow of the kitchen<br />Cooking, desert, dishes, ovens etc.<br />Different Areas <br />One or two entrances: In/Out<br />Set up of Restaurant Floor<br />Tables, Entrance, Waiting Area<br />
  64. 64. Production Defects<br />Wrong Order<br />Over/Under Cooked<br />Too much/too little<br />Not well prepared..(hair in food or contamination)<br />
  65. 65. Improvements<br />Indentify Problems<br />Seek Alternatives<br />Choose Alternative<br />Take Action<br />
  66. 66. Indentifying Problems<br />Conventional production<br />Dangerous chemicals<br />Energy Costs<br />Increasing Carbon Footprint<br />
  67. 67. Seeking Alternatives<br />Meat, Dairy and Eggs<br />Produce<br />Seafood<br />Food Transportation<br />Coffee and Tea<br />Bottled Beverages<br />
  68. 68. Choose Alternative<br />Location of Restaurant<br />Based on Menu:<br />Size: number of items<br />Type of food, Italian, Chinese, Deli<br />Cost<br />Specialize: Breakfast, lunch, dinner<br />
  69. 69. Take Action<br />Add or Remove old items<br />Reduce Wastes<br />Change suppliers<br />Long distance to local<br />
  70. 70. Dining Operations<br />Cleaning Chemicals<br />“Green” Cleaning products<br />Limit toxic cleaning products<br />Waste and Recycling<br />Cooking and Refrigerating Equipment<br />Energy efficient<br />Turn off when not in use<br />
  71. 71. Dining Operations<br />Water Use<br />Flow valves to reduce water use<br />Water efficient dish washers<br />Construction and Design<br />Efficient lighting<br />HVAC technology<br />Update to “green” standards<br />
  72. 72. Improving Practices<br />Decreasing Carbon Footprint<br />Decreasing Costs<br />Decreasing Waste<br />Increasing Quality<br />Increasing Satisfaction<br />Increasing Lean & Green Practices<br />
  73. 73. The Restaurant Industry<br />Kyle Yorke<br />
  74. 74. Importance<br />2010 Overview:<br />Sales ($580 billion)<br />Locations (945,000)<br />Employees (12.7 million),will reach 13.3 million by 2012<br />Share of the food dollar = 49%<br />1/3 of adults in the U.S. have worked in this Industry<br />
  75. 75. Research <br />$2,698: Average household expenditure for food away from home in 2008<br />52 %-of adults say they would be more likely to patronize a restaurant if it offered a customer loyalty and reward program.<br />57 %-of adults say they are likely to make a restaurant choice based on how much a restaurant supports charitable activities and the local community.<br />56 %-of adults say they are more likely to visit a restaurant that offers food grown or raised in an organic or environmentally friendly way.<br />
  76. 76. Limitations<br />Restaurant Sizes/ Types<br />Locations (NEPA) <br />How to target particular businesses? <br />
  77. 77. Industry Size<br />Small - Mid Size Restaurants <br />Eliminating franchises/ big business<br />Focusing on Mom and Pop type businesses <br />Definition: privately owned and operated, with a small number of employees (less than 100) and relatively low volume of sales.<br />Local example: Januzzi’s Pizza <br />
  78. 78. Area Restrictions<br />PA (24,397)<br />NEPA<br />Luzerne County<br />Mainly Scranton/ Wilkes-Barre <br />
  79. 79. Luzerne County Restaurants<br />List of 680 potential Restaurants<br />Made available by the SBDC <br />Further Research will decide which ones will be used specifically in our study <br />
  80. 80. Data Collection<br />Prepare a questionnaire to conduct interviews with ‘local’ restaurants<br />Data Preparation<br />How green are we?<br />How lean are we?<br />How do local restaurants compare?<br />Next Steps<br />
  81. 81. References<br />Environmental Defense Fund website - Green Dining Best Practices http://innovation.edf.org/page.cfm?tagID=34864&s_src=ggad&s_subsrc=greendining&gclid=CK_T-ZKZuqQCFRI95<br />Collier, David., & Evans, James. (2010). Operations Management (Student ed.). South-Western Cengage Learning.<br />Greening Your Business." GreenBiz. Green Business Network, 2001. Web. www.greenbiz.com<br />National Restaurant Association website. http://www.restaurant.org/research/facts/<br />http://www.allbusiness.com/manufacturing/food-manufacturing-fruit/701215-1.html<br />http://en.wikipedia.org/wiki/Small_business<br />