Improving Bakery Manufacturing Performance How to Identify

the Correct Tools and Develop an Implementation Plan

Continuous Improvement is not about the things you do well thats work.
Continuous improvement is about removing the things that get in the way of
your work. The headaches, the things that slow you down, thats what
continuous improvement is all about.
- Bruce Hamilton (President; Vice Chair of The Shingo Institute Board of Governors&
Member of The Shingo Academy & Shingo Examiner)

American Society of Baking

Chicago Marriott
March 3, 2014

Why performance improvement is necessary

Increased competition

Objectives
Categories of performance problems in your bakery
Present available tools for improving manufacturing

performance

Consumer demands

Selecting the proper tool or combination of tools to solve

Higher costs of raw materials and packaging

specific problems
Developing a targeted implementation plan for the use of

these tools

Increased labor costs

Benefits
Enhance associate engagement

Categories of performance
problems

Reduction of manufacturing costs

Sustainable quality improvements
Competitive advantage in the market place

Training
Rework
Raw Material Waste
Quality
Waiting - Changeovers/Downtime

Training
Aim to develop the knowledge, skills and attitude necessary

The only thing worse than training your

employees and having them leave is not
training them and having them stay.
- Henry Ford

for effective performance of the work

Reasons for Training
Product and quality service
New technology
Role and career flexibility
Cost control
Associate retention

Areas of training
Knowledge
Technical skills
Techniques

Rework

Raw Material Waste

Mixing/Makeup

Over scaled ingredients

Dough re-added to the mixing or make-up process

Wrapping

Product giveaway
Overuse of dusting flour

Having to re-code product

Over/under proofed dough

Re-tie product

Over/under baked product

Re-bag product

Damaged products in wrapping

Warehouse/Shipping
Staging the wrong product in the wrong area

Waiting Changeovers/Downtime

Waiting Changeovers/Downtime

Characteristic:

Unbalanced workloads
Process flow stops due to unplanned
interruptions
Queues or idle time

Causes:

Inconsistent work methods

System Interruptions
Lack of process standardization
Capacity doesnt match volume
Complexity
Training systems

Changeovers
Scheduling production

accordingly
Pan changes
Allergen vs. Non Allergen

5S

Downtime
Preventive maintenance

leading to Predictive
maintenance to avoid
equipment wear and tear
Robust training systems

Shop layout
Tool accessibility

Quality

Tools for improving manufacturing

performance

5S
Kaizen
Value Stream Map
Poka-Yoke
Six Sigma

5S Process

5S

Sort

Set in Order

Unnecessary

Shine

Sustain

Standardize
MAY 1996
JUNE 1996
JULY 1996

5S is a program to reduce operational steps and improve the overall

cleanliness of a work area making it safer and more productive

5S Example

5 S Checklist

5S

Floors clean

Tools stored

Gages clean

Std WIP

Safety Guards

Benefits of 5S

From this

Reducing changeover, & cleaning time

Reduce errors in set up & inventory
To This

Reduce waste in:

The amount of space needed for storage
Work In Process (WIP) and Warehouse inventory
Searching waste (when items are hard to find)
Motion waste (poorly located equipment & supplies)

Kaizen

Kaizen
Usually team-based, where the scope and boundaries of a problem are

Kai

Zen

clearly defined

Implementing do-now solutions through waste elimination

Stimulate change
Facilitates employee engagement and training/development

Change/Improvement

Good/Continuous

Promotes problem solving skills

Systematic approach to Lean production

Value Stream Map

Example of Value Stream Map

Hand drawn map of the process

Used to explain the process and the materials used at each point of

the process
Assists in identifying line efficiency opportunities (bottlenecks)

Benefits of Value Stream Maps

Understand details of work flow in all functional areas to

satisfy customer needs

Quantify lead time, travel distance and resources consumed
Vehicle for waste elimination

Poka-Yoke
Designing work processes to eliminate error

1. Control Approach

Shuts down the process when an error occurs

Keeps the suspect part in place when an operation is

incomplete
2. Warning Approach
Signals the operator to stop the process and correct the problem

Poka-Yoke Examples

Benefits of Poka-Yoke
Control approach
Eliminates the error

Warning Approach
Eliminates the potential for error

Six Sigma
Methodology to measure and improve companys

performance, practices and systems

Benefits of Six Sigma

Assists in measuring, detecting, and maintaining quality

standards
Data collection and decision making
Leads to standardized processes
Associate engagement and accountability

Selecting the proper tools to solve

specific problems
Example of Training and Rework
Utilizing Kaizen, 5S
Example of Raw Material Waste and Quality
Utilizing Six Sigma

Lack of Training
Assume there is a newly hired associate with NO
knowledge of a baking process. The associate is not
provided with an in-depth training program and receives 1
week of training shadowing with another associate. After 1
week of shadowing, the associate is placed on 3rd shift
wrapping, running 2 baggers for an 8 hour shift.

Example of Changeovers and Downtime

Utilizing Value Stream Map, Poke Yoke, 5S

Rework is created
During the 8 hour shift, the other

associates notice that 4,000 units of

product has been placed in the wrong bag
due to picking the wrong box
When the associate was trained, he/she
grabbed the box from the area shown by
the other associate
The veteran associate understands how to
verify the type of boxes, the new associate
does not have the experience
All units must be re-opened with the
assistance of the other 2 wrapping
associates and placed in the proper bag
causing 4 hours of overtime

Utilization of Tools

Estimated cost of rework =$300

Kaizen Event takes place in the wrapping department

Estimated cost of wasted packaging =

The objective: Identify reasons for lost time

Why? Data is collected and shows Lost Time

Team is assembled including:
2 wrapping associates
1 production supervisor
1 maintenance associate

$200
Total Cost of Rework = $200 + $300
= $500

Layout of Wrapping Area is created

to understand where Lost Time is

occurring

Utilization of Tools

Utilization of Tools

5S Needed?!?

The team observes the wrapping process for a 2 week period

on multiple shifts, they conclude that rework is the main

cause of Lost Time
An average of 1000 loaves have to be reworked per 3 shifts
because of product being placed in the wrong bag
An average of 1 hour is needed to complete the rework after
the associates shift has ended
The kaizen team decides to create an SOP and conduct 5S to
provide clarity of varieties vs. bag types and train all
wrapping associates

Vs.

Training and Rework Analysis

Assume that over a year the associates
have been conducting rework on a
daily basis on all 3 shifts 3 hours per
day 15 hours per week

5S / Kaizen Implementation

Rework = $60,000

Rework = $10,000

Estimated cost of wasted packaging =

Estimated cost of wasted packaging =

Rework is monitored after the 5S and

Kaizen Study
Rework has been reduced to 0.50 hours

per day

$30,000

associate and veteran

associates had to find the
proper bag type for the
appropriate product in this
warehouse during a
changeover
Are we setting the associates
up for Failure?
5S is implemented, bags are
condensed to 1 rack
Organized by variety, usage,
and date received
Appropriate signage is posted
for each box and variety

Raw Material Waste & Quality

Following the previous example in the wrapping department,
associates are having difficultly bagging product
Similar varieties are coming to wrapping in all different
shapes and sizes
Steps need to be taken to reduce or eliminate the variation of
product coming to the wrap

$6,000

Total Cost of Rework = $60,000 +

$30,000 = $90,000

The newly trained

per year

Total Cost of Rework = $10,000 + $6,000 =

$16,000 per year

Implementing Six Sigma

Cost of Waste from Variation
Assume that non-conforming product is 1 in every 100 units
Cost of labor and materials

2000 units a day is wasted

$500 per day
Cost of waste per year = $125,000
Assume

Labor and materials =

Six sigma can be implemented to reduce variability

within the process

Current State:
Key characteristics within the process are not being monitored
and recorded
Associates define quality standards with their own judgments
Efforts to reduce waste is based on perception not data

Cost to remake product

$75 per day

$18,000 per year

2000 units of product to remake =

Cost per year =

Total cost per year = $18,000 + $125,000 =

$143,000

Implementing Six Sigma

Implementing Six Sigma

Six Sigma is now implemented to reduce the number of defects in your

Desired State:
Data is recorded and monitored constantly
Product complies with consumer and company standards
Decisions are made based on data not perception to improve quality

and reduce waste

Associates understand data and are data driven to make decisions

Vs.

bakery, associates are actively engaged and monitor process control

The number of non-conforming units is decreased from 1/100 to 1/1000
Cost of labor and materials
Assume 200 units wasted
Labor and materials = $50 per day
Waste per year = $12,000 of waste per year
Cost to remake product
200 Units of product to remake = $7 per day
Cost per year = $1,500 per year
Total cost per year =

$14,000

Cost has just decreased from $143,000 to $14,000 per year

Waiting - Changeovers
Assume the process within your bakery consists of an average of 10
changeovers that are at least 30 minutes long per production day at
the divider area. Value Stream Mapping, 5S, and Poka-Yoke are
conducted to reduce changeovers and downtime.

Cost of Waiting Changeovers/

Downtime
Assume that you have an average of 30 minute changeovers

due to different pan types, allergen to non allergen, and

scheduling
Assume that there are 10 changeovers per day
Changeover could cost up to = $400,000 per year in labor

and materials

Implementing Value Stream Maps

Implementing Poka-Yoke/5S
Poka-Yoke

It is noticed that during a

This takes the associate an

changeover that an
associate must travel to 5
key areas in order to
change pans and guides

Pallet
Worker

Mobile Equipment

Needed tools are not at the

average of 5 minutes to adjust

pans and guides
Solution:
All guides are now preset to set

collars
5 minutes has been reduced in

the changeover

5S
All tools needed for a

changeover are placed on

shadow boards within 5 ft of
the associates work area
The 5S shadow boards reduce
the changeovers by 10
minutes

proper locations for

cleaning purposes

Cost comparison
Before
An average of 10 changeovers per

production day
An average changeover at the
divider is 30 minutes
6 different guides must be set-up
taking on average 5 minutes
Tools for divider clean-up are
scattered throughout the bake shop,
costing time for the associate to
search
Changeover costs = $400,000

After
An average of 10 changeovers per

production day
Guides are now set automatically

when selecting a variety at the

divider
Tools are placed next to the divider
on a 5S shadow board
The changeover time changes to an
average of 15 minutes
Changeover costs = $200,000

per year

per year

Implementation Plan
In House Resources
Do your associates have the

knowledge needed to implement

improvement tools?
Do your in-house resources have
time needed to properly conduct
these tools?
Benefit of utilizing associates with
the knowledge of improvement
tools:
Understand the processes and

culture within your bakery

Developing a targeted
implementation plan

Outsources needed?
Consultants provide training and

available to carry out implementation plan or if

consultants are needed

Understanding of the company culture,

associates, and work environment to roll out

implementation plan

Implementation Roll Out

Consultants

Understanding if you have in-house resources

implementation
Focus all their attention on the
efforts to help you improve
Company provides objectives,
consultants provide the knowledge
to develop plans for execution
Consultants are scalable
Can contract for variable time
periods

Sponsorship of senior leadership and plant leadership

Alignment with organizational goals
Providing resources necessary to implement tools
Selection of key associates for implementation team
Associate empowerment to provide and carry out plan
Monitor team direction, ensure data driven decisions

Commitment from all associates to engage on tools

On-going communication of project status and results

Conclusion
Importance of improvement in todays competitive

environment
Benefits of improving quality, profitability, and associate

engagement
Wide availability of tools, choosing the correct tools for your

bakery culture
Opportunities are inherent in any manufacturing facility
Utilizing the tools available and engaging associates in the
proper use of these tools will result in productivity and
performance improvements, both in process and associates

Questions?