Making Your Farm

Business More Efficient

Through Lean Thinking
Principles
Presented By: Jim Cooper & Avery Murphy

1
Why Lean Thinking?

The ability to adapt to the mindset as an

early adopter should provide a
competitive advantage to the farm
operation, as your operation can act as a
partner in improving the entire chain from
field to table

2
What is Lean Thinking?

Lean Thinking is a systematic approach

to identifying and eliminating waste while
focusing on adding value to your internal
and external customers.

3
What is Lean Thinking?
Lean thinking describes an approach to
business that aims to deliver more and more
with less and less .
Less human effort,
Less equipment,
Less time
Less space
Lean thinking involves identifying and
eliminating all forms of waste in supply chains
and focusing instead on what delivers value for
consumers.
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 The Lean Drivers

Lean Thinking
Employee Involvement
People

Customer
Success
Process Technology
Flow Tools to support
Elimination of Waste people and process

5
Defining Value

6
Defining Waste

Waste is anything that consumes time or

resources but does not add value to the
product or service, as viewed from the
perspective of the customer.

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Wastes
Waiting -Long period of inactivity for people,
information, machinery, or materials
Procrastination
Calls not returned
Waiting for clarification or approval from
the Boss
No inventory control

Unnecessary Motion
-Extra steps taken by employees and
equipment to accommodate inefficient
process layout, defects, reprocessing,
overproduction or excess inventory
Walking around an unorganized shop
Location of office
Employee turnover 8
Wastes (cont)
Defects

Frequent errors in paperwork, product

resulting in scrap, rework or repair
Confusion due to poor communication
Data entry error (age verification, pedigree
registration, Agri-Stability)
Spoiled product
Inappropriate Processing

Using the wrong sets of tools,

procedures or systems
Entering data several times
Improper equipment for the job

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Wastes (cont)
Overproduction

Producing more/sooner than the

internal or external customer needs
Mixing of products that can expire
Excessive storage of products until the
customer needs them
Unnecessary Inventory

Excessive storage and delay of

information or products.
Wrong materials
Sales on raw materials

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Wastes (cont)
Transportation
Excessive movement of people,
information, or materials. Handling
damage could be incurred.
Not finishing jobs
Poor planning

-Untapped Human Capital

Skill sets of employees
Part-time or contract hire for unwanted or highly
skilled task
Teamwork
-Energy
Power waste

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5S

Ford Motor Co.

12
Lean Thinking for
Producers in Alberta
5 primary producers from both crop and
livestock production have taken
advantage of program funding.

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Potential Funding for
Producers in Alberta
Growing Forward Productivity
Improvement Project for Producers
Phase 1: Introductory Educational session
Introducing and developing the producers
education in Lean principles.
Cost: 100% covered by AB Agriculture and Rural
Development (ARD)
Phase 2: In-depth Training Session
Identification of opportunities for Key
Improvement Projects and actions for the
company to pursue a Lean culture and continual
process improvement. 14
Is this for my Operation?
Primary producer with an Alberta crop or
livestock operation with a market value of
production exceeding $10,000 annually;
Willing to share information with Alberta
Agriculture and Rural Development (ARD) staff
and consultants;
Motivated to implement change, provide
resources and commit time;
Part of an existing value chain (preferably)

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Questions?

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