Red Meat Management Development Christine Walsh and Karen

Red Meat Management Development Christine Walsh and Karen Wahlgreen 14 Sept 2009

€ 1, 000 £ 130, 000 £ 80, 881 £ 60, 000

Agenda o o o Our credentials A simple Strategy The Red Meat fellowship Case Studies Summary Thanks

Our Credentials Christine Walsh o Young Leaders Course • • Refining the programme Recruiting for the programme o Continuous Improvement • • Improving returns for 5 th Quarter Project Manage Improvement to Processors o Benchmarking Meat Businesses • • Strategy Vs performance Strategic planning Karen Wahlgreen • European Marketing Manager for Roskilde • 30 Years in Meat Industry

Plan for the Future of Meat Companies Look, we can’t fall into old patterns. We have to think of a plan.

The winning team

A Simple Strategy - KISS. . Achieve more with less Increase your income Reduce your costs Order Winning Criteria • Price • Delivery (reliability, lead time, flexibility) • Quality (product & service) • Unique value (organic, provenance) • Corporate & Social Responsibility (sustainability, ethics, enviro impact) Business Constraints Company • Structural (plant & equipment) • Infrastructural (people & policies) • Supply (quality, delivery) • Demand (volume) • Cash (availability)

Strategy Success o Sell more o o Product development Customer management Competitive pricing Meat delivery targets o Make it for less o o o Yield Productivity Quality Equipment Best people o On going improvement projects

Sales Strategy 10. 11. Match Target costs to Process Continuous Improvement Target Costs Understand Customers Value Understand Customers Need 7. Value /quality 8. Target costs for product 9. Target costs for packaging 4. Specification to meet customer need 5. Customer value weighting £ Kg 6. Customer value of product (Carcase balance) 1. Who is the customer? 2. Match customer needs to product 3. Customer Satisfaction Drive to Customers Value

Operational Success Strategic Objective s Profitable Growth Strategic Goals Sales Growth Value Stream Goals Value Stream Measures Cell critical success factors Cell Goals Cell Measures Reduce Batch Sizes Overall Equipment Effectiveness On time Delivery Quality at Source Producing to Customer Demand Cost Per Unit Quick Changeovers Reduce Machine Downtime Perfect Quality at The Source First time Through Pull Production Make to Order Units per Person Effective Machine Usage Eliminate Variability Standard Work Increase Capacity Economical Processes Increase Cross. Training First Time Through / Cross-Training Day by the Hour

Flexible People …setting the climate for change …. . once you have your purpose you need to have the people o Lean management o Start at the top o Empower the workforce o Right to the bottom o Financial & non financial measures o Improvement activities o Good controls o Great communication

Flexible Processes Increase your income by: 1. New Product Development o Marketing surveys o Creative thinking 2. Optimise low value product o Carcase balance o Sell offal (red&green) 3. Increase Current orders o Sell more to current customers Reduce your costs by: 1. Improve your supplier quality o Primals or muscles to spec 2. Eliminate waste o Rework o Giveaway 3. Increase throughput o Remove Stoppages etc. o Reduce changeovers

Increase Income Reduce Costs £ 80, 881 for 1 project £ 130, 000 in 2008 £ 60, 000 for 1 project € 1, 000 pa

Russell’s Problem o Family owned multi species abattoir o Turnover £ 4. 5 M o His company was in crisis

Russell’s - Road Map for Growth Sales South Wales Catering Marketing Project Promotion Media E commerce Surviving and growing the business through the right innovation strategies TB Reducing costs By Products R e d u n d a n c y S a l a r y I n v o i c e Energy Efficiency

Summary of Savings o o o By-products = £ 93, 000 Cheek meat = £ 5, 000 Ox tongue = £ 3, 500 5 S in vac-bag store = £ 16, 500 Wages in Nov & Dec ’ 08 = £ 12, 000 Total = £ 130, 000

Vicky’s story - SALES Define o Double your Sales? Measure o Categorised her customers into • Runners, Repeaters, Strangers o Customer Survey o Performance Vs Priority MEASURE

Analyse Customer Survey Results Performance Priority Quality 1 Price 4 Relationship 3 6 5 4 Packaging Delivery Paper flow 3 2 1 2 6 5 Customer shortages 28% of orders shorted Quality Analysis Quantity Credit Value(€) Leakers 3 411 Not to Spec 8 812 Labels OOS 5 867 Delivery issues 1 412 Paper Flow 1 86 Complaint MEASURE

Implement o Cutting specifications with pictures o Standard Packing Operating Procedures (Quantity & orientation) o Trained shop-floor inc. label making o Improved communications

Increase orders by € 20, 000 pw Equivalent to € 1, 000 pa

Jenny’s Story to cut costs Improve capacity in their Added Value department Project Foundations Define • Problem statemen ts • Gantt chart • Action Planning Measure Analyse Improve • Process mapping • Gap analysis • Creative thinking • Data collectio n • Cause & effect • Workshop s • Runners repeaters & strangers • Change managemen t • QCDs Control • Team involvemen t • Project closure

DMAIC Line Balancing Sept 08: • 7 staff at 65% capacity • Machine 2 bottleneck Nov 08: • Tasks reviewed and balanced • Reduced set-up time & B/downs • 5 staff at 73% capacity

Achievements o Improve productivity • Increase throughput by 13. 67% (no capex) • People Productivity increased by 71% o Reduced waste • Value Added Person 65% • Right First Time 3. 07% o Flexible multi-skilled work-force This projected in the Added Value Dept contributed: £ 80, 881 To the bottom line.

Wayne wanted to know whether to buy another delivery truck? o 4 years of rapid growth o Vans appeared full o Distribution area o 480+ customers Distribution area by own fleet

Route Analysis - Driving time and load – Driving Hours 51 hours spare excluding route 7 &11 - Sales £ 70, 000 pw space available £ 23 k 45 hrs Calculation of Saving Courier route £ 235 x 5 days = £ 235 per day = £ 1, 175 pw Annual saving= £ 60, 000

What next…. ? 1. Feedback 2. Programme run once with backing from RMIF. Many SME’s need support. 3. International Interest / support required

The definition of Insanity is when you do something over and over again and expect a different result. Do something different

o The company sponsors who have actually gained over £ 2, 000 in financial benefits