Sustainability, Lean & y,Enterprise Excellence: Profiting from Reductions in WasteProfiting from Reductions in WasteDr. Keivan ZokaeiPartner, S A PartnersPartner, S A Partners

17 October, 2014© S A Partners

Session objectives

1 The food industry is not lean1. The food industry is not lean2. There are huge opportunities for waste reduction

which :which :a) Improves the economic performance of firm and supply

chainchainb) Improves the environmental performance of …

3 D h t ti h t l d 3. Do you have a systematic approach to go lean and green? Opportunities are enormous.

17 October, 2014© S A Partners

Henry Ford’s inspiration

17 October, 2014© S A Partners

Hounshell (1985)

Where are we heading?

12Manufacturing Food and drinks

Trend (manufacturing) Trend (food and drinks)

10

Trend (manufacturing) Trend (food and drinks)

8

rn

4

6

Stoc

ktur

Automotive:15To ota 35

2

4S Toyota: 35Dell: 80

0

17 October, 2014© S A Partners

The Leaky Pipeline

Giveaway

Food on the floor

Out of lifeDemand Distortion

Household food waste

Food on the floor

ouse o d ood aste

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Waste Map

Ready Meal 60.00%87.97%

90 00%

100.00%y

Waste=11.5%40.00%

50.00%Soft Fruit Waste=10.6%

60.00%70.00%

80.00%90.00%

BurgersWaste = 7%

20.00%

30.00%

30.00%40.00%

50.00%Waste 7%

of Life

waste

waste

depo

t

er loss

e aw

ay

waste

waste

packs

dients

ip loss

ec cuts

to dice

10 00%

0.00%

10.00%

fe te ns ss s) s) s) ay off

mp

0.95% 0.00% 4.08% 0.19% 3.63% 3.19%0.00%10.00%

20.00%

fe te ns ss ng ay gs

Out 

Quality 

age & RDC

 

Prim

ary 

oth e

Give

Line

 

hangeo

ver 

der w

ieght 

OOL ingre Dr

y: over spe

wn grade t-10.00%

Out

of L

i

Qua

lity

was

Ret

urn

Dep

ot lo

s

t (Yi

eld

los

2 (Y

ield

los

C (Y

ield

los

ht G

ivea

wa

Writ

e o

Dum

Out

of L

if

ality

was

t

Ret

urn

utio

n Lo

s

Pack

agin

Giv

eaw

a

Blo

od B

ag

Shrin

ka Ch Und

Giveaway

Dow

Last 100 Yards

Q

Line

Rej

ect

Cla

ss 2 QC

Wei

gh

Qua

Dis

trib B

L t 100 d L i ti M f t i t

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Logistics loss Manufacturing waste Meat cut & pack wasteL

Last 100 yards Logistics Manufacturing wasteLast 100 yards Logistics Manufacturing waste

Concept Process capability

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220 grams 229 grams211 grams

How to …

Strategy Deployment

• Case study of Tesco

Process Supply Chain Lean & Green

Enterprise

Process Management

• Case study of

Supply Chain Management

• Case study of Enterprise Case study of Toyota

Case study of M&S and MAS

Leadership and Leadership and People Engagement

• Case study of Adnams

17 October, 2014© S A Partners

Case study of Adnams

Variation is the root of all evil

You need stability before you can pinpoint areas to improve

VARIATION STABILITY IMPROVEMENT

man

cess

per

form

Proc

es

17 October, 2014© S A Partners