Lean Toolkit The fundamental principles of lean production

Lean Toolkit The fundamental principles of lean production for businesses involved in the edible and amenity horticulture supply chains within Wales.

Lean Toolkit Produced by …… Dr Toni Whitehead is a Business Analyst who provides Research, Analysis & Evaluation and Programme Management services to clients across a number of sectors. Toni’s background is in Procurement, Change Management and Supply Chain Management. She has a Masters degree in Lean Supply Chain Management and a Ph. D in Lean Supply Chains and Regional Economic Development from Cardiff University. Dr Donna Samuel is also a Business Analyst and heads up the S A Partners Lean Academy. Donna started her career in manufacturing but moved into the higher education sector where she accumulated over twenty years of graduate and post graduate teaching. She has considerable research experience in the areas of lean, business and process improvement, purchasing and supply chain management. Donna has a Masters degree in Business Administration (MBA) and doctorate. Her Ph. D study focused on the range of factors impacting on the diffusion (or spread) of lean in the UK over the past three decades. Andy Brunskill is a Principle Management Consultant who works with clients on a global basis in a number of sectors, helping them to deliver significant and sustainable improvements across their businesses. For over 20 years, S A Partners has been a leading Lean enterprise excellence consultancy. Their Head Office is in Caerphilly, South Wales. Consultants operate on a global basis. The team are delighted to work with Horticulture Wales on this important project.

Contents Introduction What is Lean? Case Studies Lean Philosophy and Concepts Lean Tools and Techniques Glossary of Terms, Tools and Techniques Useful Links and Resources References/Bibliography

Introduction The purpose of this section is to provide an introduction to the toolkit

Introduction - Index Introduction A Simple Growing Process or Value Stream Purpose of Toolkit Audience for Toolkit How Toolkit can/should be used Case Studies within Toolkit

Introduction Horticulture Wales provides focused, expert support to businesses involved in both edible and amenity horticulture supply chains within Wales. Their aim is to enhance the efficiency of these businesses and supply chains. The horticulture sector is facing a number of challenges: Characteristics of edible versus amenity horticulture and the differences in price and flexibility Increased demand market dynamics for product variety, uniqueness, freshness (e. g. mixed salad leaves, speciality vine tomatoes etc. ) Increasing customer expectations with regard to quality, cost, speed and adherence of delivery Increased competition and the need for 24/7 or 365 day availability. With these in mind, Horticulture Wales have identified a need to develop a Lean toolkit. Lean Thinking is a globally recognised approach used to deliver value through continuous improvement, efficiencies and operational excellence across an organisation (and its supply chain). Whilst Lean started in the automotive sector horticulture shares many characteristics, for example, repetitive routine activities that produce a quality homogeneous product.

A Simple Growing Process or Value Stream ‘Source’ Seed/ Cutting/Sapling Prepare for Use/Sale/ Distribution (Data/Labels etc) Pick/ Plant Seed/ Cutting/Sapling Harvest Product Water & Feed Maintain Product Packaging Distribute Use/Sell to end Customer

Purpose of Toolkit To raise awareness of Lean approaches amongst the horticultural community in Wales. This toolkit has been designed to introduce Lean as a practical and useful approach to help users make a difference to everyday working lives in relation to: Improved operational efficiency Improved cost, quality and delivery to meet customer needs A more flexible and motivated workforce that can adjust to surges in demand It is anticipated that growers will see value in the toolkit and its relevance to their business, especially with the practical examples and case studies. Lean has the potential to deliver transformational change and ongoing continuous improvements, but these take long term focus and commitment.

Audience for Toolkit Businesses involved in both edible and amenity horticulture supply chains within Wales. These can include: Independent growers Nurseries Garden Centres (Retailers) Those responsible for the maintenance of public horticultural products, spaces and amenities

How Toolkit can/should be used The guide is sufficiently general to be used by growers and retailers It is a reference document that can be accessed on-line or used in a hard copy format It takes users through a series of concepts, tools and techniques which can signpost them into analysing key components of their business (Diagnostics) It enables them to apply Lean principles to improve efficiency in their businesses (Implementation) Each tool or technique is categorised by ‘What’, ‘Why’, and ‘How’ to explain what it is, why it is useful and how it can be used.

Case Studies Practical examples showing how businesses are using Lean approaches can be found throughout the toolkit. The four detailed Case Studies showcase horticulture-related companies who are using Lean tools and techniques to great effect. (In the case of Double H Nurseries, these are recognised as an exemplar within the horticulture supply chain). Summaries of improvement opportunities and benefits across the supply chain (Supplier, Process, Customers and other complementary benefits) for each case are shown in the next seven pages.

Case Study 1: Potatoes Supplier Inputs - Improvement Opportunities and/or Benefits Process - Improvement Opportunities Other Improvement Opportunities & and/or Benefits 2% of incoming potatoes are rejected Reduced yield variance from current Standard Operating Procedures on receipt by potato processor. levels of 45 -65% to 25% could realise up (SOPs) (including standard machine These are not right first time. to £ 1. 25 m in savings. settings) Improvement indentified. Reduction in downtime and lost output Ways of working - improved planning incurred on dicing line by 50% = 21% process and related activities improvement in overall output Visual management Improved quality checks throughout the processing activities and changeovers FIFO system operated by Fork Lift Improved H & S - reduced risk of slips Truck drivers to ensure old stock used and accidents on the production line first Improved changeovers at flexi pump dicer (quick changeovers) Up to £ 1. 25 m potential savings identified for initial improvements

Case 2 – Double H Nurseries (1) Process - Improvement Opportunities and/or Benefits Output to Customer Improvement Opportunities and/or Benefits Other Improvements or Enablers Layout improvements Increased customer value and quality - right first time Holistic change management and personnel development and training programme to improve skills - deployed across the business Total Productive/Preventative Maintenance (TPM) improvements Awards and recognition from customers, IIP and business organisations Attainment of IIP - 'respect for people' approach - recognition that people are the key to business success 5 S deployed Strategic vision developed, regularly reviewed and deployed across the business - sets direction Visual Management deployed The DH 'Change Implementation Model' Reduced inventory/stock The DH 'House of Lean' Improved supply chain management and relationships with customers/suppliers across the extended enterprise Improved ways of working Mission Directed Work Teams leading to improved team working across the business

Case 2 – Double H Nurseries (2) Process - Improvement Opportunities and/or Benefits Output to Customer Improvement Opportunities and/or Benefits Other Improvements or Enablers Design for manufacture improved NPD Suggestion scheme improvement ideas Lower cost of assembly Increased gross value per head Skills and training matrices Improved working conditions and H & S Improved ergonomics/movement Standard Operating Procedures (SOPs) A culture of problem solving and continuous improvement (CI)/Kaizen Benchmarking and measuring the 'Lean Maturity' and CI of the business and celebrating success The holistic Lean approach taken by Double H is believed to have led towards an increase in sales growth from around £ 5 m to £ 20 m (2005 – 2014)

Case 3 – Flowers (1) Process - Improvement Output to Customer Other Improvement Opportunities and/or Benefits Improvement Opportunities & Benefits and/or Benefits Reduced 'out of life' product Improved 'supplier' quality and Improved 'ways of working' compliance robust problem solving and root cause analysis - now a way of life. Manage by fact. Improvement/efficiencies to pack house operations Introduced effective KPIs and performance management systems Reduced demand amplification leading to level loading of orders and processing Clear, standardised plan Improved stock dwell time from 20% to 80% Standardised manning levels Increased productivity by 50% on Bouquet product line (creation of capacity to use in other areas/process new orders)

Case 3 – Flowers (2) Process - Improvement Opportunities and/or Benefits Output to Customer Improvement Opportunities and/or Benefits Other Improvement Opportunities & Benefits Reduced damage to produce Increased line efficiencies 35% production savings on some product lines 10% back office savings - released personnel to do other value adding work and reduced need to recruit more staff Overall waste reduced by 3% to date Improved Visual Management Improved supplier ordering and stock management Potential benefits are around £ 200 k from this initial project work

Case 4 – The Old Railway Line Garden Centre (1) Supplier Inputs Process - Improvement Opportunities and/or Benefits Output to Customer Other Improvement Opportunities & Benefits and/or Benefits Product data provided Improved inventory levels and Awards and recognition from Award -independent early/regulary to aid flow of management trade bodies and other recognition for team work information and physical organisations flow of products. Danish Trolleys used from supplier, through receipt to display. Pareto analysis and RRS Improved customer applied to stock management, experience display and re-ordering process Low turnover of staff in horticulture area Right First Time' (RFT) quality achieved from supplier(s) of plants/plugs/specimen trees Layout has improved product flow, reduced transportation and movement (and potential damage to plants) RFT - 'Perfect quality' achieved from suppliers of cut flowers Improved communication and visual management Optimised capacity and space by using modular display benches and ‘hot spots’ grouping plants in ‘themed ranges’ rather than by name – A to Z.

Case 4 – The Old Railway Line Garden Centre (2) Supplier Inputs Improvement Opportunities and/or Benefits Process - Improvement Output to Customer Other Improvement Opportunities and/or Benefits Improvement Opportunities & Benefits and/or Benefits Layout improvements have led to the receipt area now being under cover to protect plants and reduce damage in bad weather. Improved back office operations Reduced water consumption Danish Trolleys used from supplier, through receipt to display. Optimised & flexible use of layout - modular areas – ‘Hot Spots’ for ‘Runners’ e. g. impulse buys such as seasonal bedding plants. Quick changeovers. Improved 5 S and Visual Management Efficient stock-turn and product freshness KPIs – ‘no plant celebrates it’s birthday’. Continuing to improve overall business performance

What is Lean? The purpose of this section is to understand what lean is, where it came from and why it matters

What is Lean? - Index What is Lean? Where did Lean come from? Lean Concepts and Techniques Organisations Going Lean Why bother with Lean? The ‘So What’ Question

What is Lean? Some definitions: Lean in a means of achieving profitable growth through the relentless pursuit of customer value Lean is a consumer-focused approach to the provision of effective and efficient processes Lean is doing more with less Lean is a philosophy which encourages people to subconsciously seek perfection in their everyday work.

What Lean is Not Sales fall Customer service suffers Process performance falls There is a profit problem Beware of the Cost Cutting Spiral! The business shrinks! Constrain development & Demotivate people Reaction: Cut Costs! Cut the budgets Target areas of excess spending

Where did Lean come from? The term ‘Lean’ was made popular Womack, Jones and Roos (1990) following their influential and best-selling management book entitled The Machine That Changed The World. They selected the word ‘Lean’ to capture the essence of the Toyota Production System (TPS) compared with typical Western ‘resource intensive’ production systems. Lean is defined in terms of its outcomes: ‘compared to mass production it uses less of everything – half the human effort in the factory, half the manufacturing space, half the investment in tools, half the engineering hours to develop a new product in half the time. Also, it requires keeping far less than half the needed inventory on site, results in many fewer defects, and produces a greater and ever growing variety of products’. (Womack et al. , 1990, p. 13) The authors went onto to publish Lean Thinking in which they identify some of the principles that underpin Lean and illustrate their ideas with case studies. Together these two texts triggered a movement and, although Lean started in the automotive sector, in the last two decades it has spread through to other industries. This means that in some sectors Lean is fairly mature, while in other sectors (including the horticultural sector) Lean is still relatively new.

Lean Concepts and Techniques Lean is about making tomorrow better then today Lean is a broad church that encompasses many concepts and many analytical tools and techniques Some Lean tools and techniques help to diagnose organisational problems and root out waste; others are implementation tools or techniques that are found in the very best organisations In this workbook we have been deliberately selective about which concepts, tools and techniques to introduce you to. Our aim is to give you enough to get you started.

Organisations Going Lean Organisations are at different states of their Lean maturity. For some Lean has been around for a while and is fairly mature, while in other sectors (like horticulture) Lean is still relatively new. Although we will show you a case study of a horticultural company that has been on its Lean journey for over a decade. Organisations tend to view Lean in different ways: Some use Lean to change their organisational culture and transform themselves Others use Lean as a methodology to improve their performance This toolkit has been designed to introduce Lean to you as a practical methodology to help you make a difference in your everyday working lives.

Why Bother With Lean? The ‘So What? ’ Question…… The purpose is to deliver business benefits. While it is almost impossible to pinpoint the precise benefits you can expect, these are typical benefits that other organisations have seen: Improved quality with 20 -40% reduction in defects Improved productivity by 10 -20% Increased flexibility – lead time reductions of up to 50% Reduced costs by 10 -15% Increased customer satisfaction Reduced organisational environmental impact Raised employee engagement and involvement leading to productivity improvements of up to 50% Reduced stock levels by up to 75%

Horticultural Cost Savings Example Savings running into £ 10, 000 s per annum were identified in a commercial tomato nursery as part of HDC Project PC 257. Little or no capital investment required Return on Investment recouped within two years (Source: Lean Manufacturing, 2008, Agriculture & Horticulture Development Board)

Lean Philosophy and Concepts The purpose of this section is to help users understand some core Lean principles and ideas

Lean Philosophy & Concepts - Index Understanding the Lean Characteristics The 5 Lean Principles Customer First – Customer Value Respect for People House of Lean Total Productive (or Preventative) Maintenance (TPM) Wastes – The original 7 Wastes; Variations on the Original 7 Wastes and the Service Wastes Value Add (VA)/Non-Value Add (NVA)/Necessary but Non-Value Add (NNVA) Gemba Supply Chain Management (SCM) Quality, Continuous Improvement (CI) & Kaizen

Understanding the Lean Characteristics Characteristic Customer What It Means The external customer is the starting and ending point. Seek to maximise value to the customer. Optimise around the customer and not around internal operations. Understand the customer’s true demand (what he would like not what can be supplied). Simplicity Lean is not simple but simplicity pervades. Simplicity in operation, system and technology. Visibility Seek to make all operations as visible and transparent as possible. Regularity Look for no surprises in operations – we run our lives on regularity, we must do the same in operations. Synchronisation Look to ‘keep it moving’ (flow) – this will mean synchronising operations so that it all comes together in the end. Pull Seek for operations to work at the customer’s rate of demand. Waste is endemic. Learn to recognise it and wear your ‘muda spectacles’ at all times. Process Organise and think with a process view – horizontal not vertical. Prevention is always better (and less costly) than cure. Inspect the process not the product. Time Improvement Partnership Time is the single best overall measure. Continuous improvement is everybody’s concern. Seek cooperation and collaboration with all partners including suppliers, employees, customers and other stakeholders. Go to the workplace and seek the facts. Variety is good but variation is bad. Learn to understand common and special variation and to react appropriately. Employee should share responsibility for success and failure. Give them the opportunity to solve problems. Gemba Variation Participation Adapted from Bicheno, 2000

The 5 Lean Principles The Lean Principles come from the book Lean Thinking in which the authors distil what they saw in Toyota (recognised as one of the best car makers in the world), into a set of management principles. These principles offered a ‘roadmap’ for those organisations who wanted to copy some of the techniques used by Toyota.

Pull & Flow in Horticulture …. Pull and flow can indicate a need to hold low levels of stock and achieve short delivery times whilst maintaining maximum utilisation of processing capacity – a dichotomy? The traditional method of meeting customer demand through off shelf delivery is to hold high levels of stock – a large investment It is difficult to hold high levels of stock in crop production because of product freshness The short marketable period helps to avoid the need to hold high stock levels to manage customer demand Control can be applied in processing and packaging where it may be possible to ‘stop’ operations (save cost) for produce that does not yet have a confirmed order. Process the order at customer pull …………. (Source: Lean Manufacturing, 2008, Agriculture & Horticulture Development Board) NB - There a number of products that help improve the flow of produce through the supply chain. See for example: http: //www. hortwee k. com/market-reportnurserytransport/ornamental s/article/1228018

Customer First – Customer Value The first Lean principle is to specify value from the perspective of the customer This principle is about specifying what does and does not create value from the customers’ perspective and not from the perspective of individual firms, functions and departments We often assume we know what customers want Lean helps us challenge our assumptions This first principle means that customer value should be at the heart of everything we do. Examples of good customer value may include: • Good quality • Accurate content • Convenient delivery times • Flexible delivery times • Excellent customer service ~ going that one step further to help • Proactive approaches to meeting their needs • Expert knowledge of subject area and understanding of individual needs

Respect for People Lean has sometimes been associated with cost cutting, losing heads and down-sizing (See slide on the Cost Cutting Spiral). After all, it is about reducing waste and sometimes that means people losing their jobs – right? Wrong! Lean is all about giving workers their right to use their natural ingenuity and talent in the workplace and not just their hands. It should be remembered what we tend to pick up on now is a mix of what Lean was originally and how it has been interpreted by some companies If you really want your people to join you in a journey to Lean, they have to feel comfortable that they are not going to improve themselves out of their jobs Otherwise they will use all that latent ingenuity and talent to sabotage your efforts. Ohno believed in two underlying principles: Respect for People and Lead with Humility

House of Lean The array of concepts that underpin Lean can seem overwhelming It can be useful to think of a journey to becoming Lean in terms of building a house. The foundations must be solid The house needs to be protected by a roof An example of a typical Lean house ….

A ‘House of Lean’ for Horticulture Customer Value Quality Cost Delivery Variety Safety Demand Management RFT Quality & Continuous Improvement Standardised Operations & Visual Management Process Stability & Reliability Respect for People

Total Productive Maintenance (TPM) Also known as Total Preventative Maintenance, TPM is closely linked to Total Quality Management (which preceded and is really a pre-requisite for Lean) and is a vital component for flow We have all heard of the phrase ‘sweat the assets’. Well don’t. Planned preventative maintenance is far less costly than fixing machines once they have broken down TPM addresses the six big production losses: 1. Breakdown losses 2. Set up and adjustment losses 3. Idling and minor stoppage losses 4. Reduced speed losses 5. Start-up losses 6. Quality defect and yield losses • • • Closely related to the six big losses is overall equipment effectiveness (OEE) where: OEE = availability X performance rate x quality rate As a product of all three factors, OEE is a severe test because if each factor were 90% then OEE would only be 72% World class OEE is in the order of 85%.

TPM Examples in Horticulture Maintenance of all equipment for example: Vehicles e. g. tractors & trailers, harvesting or picking equipment Machinery for cleaning, sorting and processing produce

Wastes Waste is the opposite of value. Taiichi Ohno - father of Lean and architect of Toyota Production System - identified seven original wastes: Waste Transport Explanation Examples Customers do not pay to have goods moved around. This can never be fully eliminated but it can be reduce with good layout. Double handling; movement by forklift, conveyors Inventory is the enemy of quality and productivity. It increases lead-time, prevents rapid detection of problems and uses space thereby discouraging communication. Zero inventory can never be achieved but inventory should be minimal and strategic. Inventory exceeding quantity limit; so much inventory that double handling is needed; excessive safety stock Motion Ergonomics in the workplace is ethical and economically sound. Poor ergonomics is not good for quality or productivity. This waste is also a Health and Safety issue. People lifting, bending, stretching or twisting; double handling; more than two turns to loosen a nut; walking between widely spaced workstations Waiting This is whenever time is not being used effectively. Time is an important element Operators waiting; operators slower than a of competitiveness and quality. production line; operators watching machines; queuing at a tool-crib Making too much, too early or ‘just in case’. It leads to excessive lead and Lumpy flow; production above target; excessive lead storage times. Defects may not be spotted early and pressure on work rates are -time; delivery too early increased. Over-production Over-processing A good way to think of this one is using a hammer to crack a nut. Defects cost money, and defect costs tend to escalate the longer they remain undetected. Variation between operators; variation from standard; using a fast machine shared between several lines Scrap; rework; less than perfect yield; complaints.

Variations on the Original Seven Wastes Ohno famously identified overproduction as the most important waste in car manufacturing. Hence the move towards ‘Just In Time’ production Here we have presented the original seven in an order which spells TIMWOOD to help you remember them. You could also use the acronym DOWNTIME (replacing over processing with excess processing) There are many variations on the original seven wastes. Bicheno, for example developed the seven new wastes and later the Lean service wastes (Bicheno, 1998, 2005 and Bicheno and Holweg, 2009) It is worth spending some time working out what the main wastes are in your own particular work environment.

Variations on the Original Seven Wastes Here is variation on the original seven wastes that you might prefer to use:

Lean ‘Service Sector’ Wastes (Biceno & Holweg, 2009) This may be more appropriate to a retailer (e. g. Garden Centre/Nursery): 1. Delay on the part of customers waiting for service, for delivery, in queues, for response, not arriving as promised. The customer’s time may seem free to the provider, but when he/she takes custom elsewhere, the pain begins 2. Duplication. Having to re-enter data, repeat details on forms, copy information across, answer queries from several sources within the same organisation 3. Unnecessary Movement. Queuing several times, lack of one-stop, poor ergonomics in the service encounter 4. Unclear communication, and the wastes of seeking clarification, confusion over product or service use, wasting time finding a location that may result in misuse or duplication. 5. Incorrect inventory. Being out-of-stock, unable to get exactly what was required, substitute products or services 6. An opportunity lost to retain or win customers, a failure to establish rapport, ignoring customers, unfriendliness, and rudeness 7. Errors in the service transaction, product defects in the product-service bundle, lost or damaged goods 8. Service quality errors, lack of quality in service processes.

Examples of Over Production & Transport of Product in Horticulture Overproduction is inherent in the way in which produce (e. g. fruit) is grown – a biological process beyond the control of the grower …. Transport of product may relate to fresh produce, fertiliser, pallets, punnets …… As an example, buying a year’s requirement of punnets – consider implications on cost of storage, location of store, transportation when needed ……. Consider buying in smaller batches in regular deliveries straight to the pack house to match customer demand Just in time reduces costs through lower stocks, storage, transportation etc. but must be balanced with managing the risk of stoppages or not meeting customer demand ……. . This can be managed: Do not pick and pack produce where there is no demand – only pack to order. Then only surplus produce can be disposed of, without the cost of the packaging Pick produce to guaranteed orders into punnets and remaining produce into boxes – put into punnets when ordered…. This may look like re-work but it does offer flexibility and may be more costeffective (Source: Lean Manufacturing, 2008, Agriculture & Horticulture Development Board)

Examples of Over-Processing, Waiting & Delays in Horticulture Over-processing – for example ‘giveaway’ or over supply Some growers accept this as 5% even though it costs £ 20, 000/Ha p. a. Better investment in production could reduce over supply and a three year return on investment could allow the £ 12 k/Ha/p. a to be invested for every 1% improvement realised. Packaging is largely specified by retailer. However, it could be argued that specific punnets, printed film wrap and labelling could be over -processing in the eyes of the end customer… Losses incurred from waiting and delays are a common inefficiency when, for example, people and equipment are not where they are needed: A flat battery on a work platform or someone has borrowed it and not returned it! Run out of boxes/punnets in the greenhouse and the picking team stops Run out of produce in the pack house and the packing line grinds to a halt Someone or something is blocking your way when changing rows … (Source: Lean Manufacturing, 2008, Agriculture & Horticulture Development Board)

Example of Waiting & Delays from Horticulture …. . On-site Communications: A single picking team leader loses 15 minutes per day searching for the supervisor Total time wasted over a 30 week picking season = 37. 5 hours – 1 full week Proposed Solution: Fixed radio point in each greenhouse Full access to ‘communication system’ Whilst this would save time – a better solution would be to find out the root causes for the needs to speak to the supervisor and establish ‘Standard Operating Procedures’ to resolve these … (Source: Lean Manufacturing, 2008, Agriculture & Horticulture Development Board)

Examples of Defect Prevention & Movement from Horticulture …… Defect Prevention: To avoid waste and produce high quality tomato plants, for example, productivity drivers are based on looking after the plants to ensure there is no disease, damage, and that no tomatoes are off the truss Movement & Ergonomics: Crop positions are adjusted to ensure easier handling and picking. This also helps maintains Health & Safety and shows ‘respect for people’ in the workforce.

Waste Mapping at a Fruit Grower/Processor Waste analysis will help you to identify where to focus your Lean/improvement efforts first.

Other Examples of ‘Wastes’ from Horticulture (1) A new nursery business opened near Brecon in 2013. During the first year, the owner adopted a cold composting system. This lead to a lot of weed re-growth when the compost was used in the production/growing process for new flowers, herbs, fruits, and vegetables. Learning from this, there is now an effective and efficient six week ‘hot composting’ process which supports the growing process. Supermarkets operate a ‘RTM’ (return to manufacturer) system whereby surplus produce is returned to the grower/supplier – this impacts on over-production, movement, transportation etc. The less times that edible produce is ‘handled’ minimises the opportunity of damage and helps maintain high quality and freshness. For example: Pick direct to containers and avoid sorting processes On vine tomatoes are picked once a week and can command a higher price than off vine tomatoes, which can be up to 20% cheaper.

Other Examples of ‘Wastes’ from Horticulture (2) Many supermarkets across the range (e. g. quality retailers to those more cost conscious) now stock fresh flowers and plants. Their staff are not trained to care for these horticultural products, which often ‘go to waste’ or have to be sold at reduced prices as the quality deteriorates as they are incorrectly displayed or not maintained. Therefore retailers require strategies to manage all stock – including horticultural products.

Value Add (VA)/Non-Value Add (NVA)/Necessary but Non-Value Add (NNVA) The first Lean principle is value in the eyes of the customer. However deciding what adds value to the customer and what does not is not always easy A practical approach is to think about whether the customer would be willing to pay for it Doing so allows us to identify three main categories: Value adding (VA) – those activities or process steps that unambiguously add value e. g. welding the tubes of bicycle together; flying a passenger from Cardiff to Europe. Necessary but non value adding (NNVA) – those activities or process steps that create no value but are unavoidable because of current production and/or technology constraints or because of external factors such as legislation e. g. some inspection, testing. Non value adding (NVA) – This is pure waste - these are steps create no value and are avoidable. It is third category (NVA) that is the main target for Lean improvement but we should seek to minimise NNVA too. When you analyse end to end processes through mapping it is often shocking how much NVA is present.

Value Add and Non-Value Add VA and NVA Pie Chart: Top Tip: You don’t have to eliminate or remove all the wastes at once – prioritise by importance to your business

Examples of VA/NNVA and NVA in Horticulture Source: Lean Manufacturing, 2008, Agriculture and Horticulture Development Board

Gemba is the workplace Ohno said ‘management begins at the workplace’ and famously drew a circle on the factory floor, making his engineers stand in them and watch what was actually happening. Contrast gemba with the traditional way we manage – staying the office and discussing opinions Gemba is a mindset, a way of thinking. If there is problem, go to where the problem is occurring first. Gemba means: • Go to the actual workplace • Look at the actual process • Observe what is actually happening • Collect actual data

Supply Chain Management (SCM) The concept of Supply Chain Management developed at the same time and alongside Lean. SCM is based on two core ideas: The first is that practically every product that reaches an end user represents the cumulative effort of multiple organisations. These organisations are referred to collectively as the supply chain The second idea is that while supply chains have existed for a long time, most organisations have only paid attention to what was happening within their ‘four walls’. Few understood, much less managed, the entire chain of activities that ultimately delivered products to the final customer. The result was disjointed and often ineffective supply chains. Supply chain management, then, is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage.

Supply Chain Management (SCM) Supply chain activities cover everything from product development, sourcing, production, and logistics, as well as the information systems needed to coordinate these activities. The organisations that make up the supply chain are linked together through physical flows and information flows: Physical flows involve the transformation, movement, and storage of goods and materials. They are the most visible piece of the supply chain. Information flows allow the various supply chain partners to coordinate their long-term plans, and to control the day-to-day flow of goods and material up and down the supply chain.

Quality, Continuous Improvement (CI) & Kaizen Lean is a natural progression of the Total Quality movement Quality gurus of the time like Edward Deming, Phil Crosby and Joseph Juran taught us that quality is free and introduced a mindset of ‘zero defects’ By ‘quality is free’, what they meant of course that it is far less costly to get it ‘Right First Time’ than it is to fix it afterwards By ‘zero defects’, what they meant is that although it may be an impossible target, it is the only legitimate target Kaizen or Continuous Improvement is central to Lean. It is sometimes referred to as ‘right first time’ (RFT) Ohno taught us that small incremental improvement can lead to excellent overall performance. Step Change – Occurs rapidly Incremental Change Occurs over time in incremental stages

Lean Tools & Techniques The purpose of this section is to introduce you to some simple Lean diagnostic and implementation methods

Lean Tools & Techniques – Index (1) The Kano Model Voice of the Customer (Vo. C) Failsafing (or Poke Yoke) Project Charter Mapping: Value Stream Mapping (VSM) Brown Paper Mapping (BPM) Process Activity Mapping (PAM) Spaghetti Diagram Four Fields Mapping (4 FM) SIPOC (Suppliers, Inputs, Process, Outputs, Customers)

Lean Tools & Techniques – Index (2) Demand Amplification (DA) Runner, Repeater, Stranger (RRS) Problem Solving & PDCA (Plan, Do, Check, Act) Fishbone (Ishikawa) Diagram 5 Whys 5 S and Visual Management Failure Mode and Effect Analysis (FMEA) Quick Changeovers Cellular Layout

The Kano Model What? The Kano model is a theory of product and service design developed in the 1980 s by Professor Noriaki Kano Why? We tend to perceive customer satisfaction as a linear function to implemented features i. e. , the more product features, the better the customer satisfaction. The Kano model leads us to revisit this assumption and think more deeply.

The Kano Model How? The Kano model classifies customer requirements into three categories (see right) The Kano Model highlights that these factors are not static – what may be a delighter this year may well be a basic in a few year’s time. What is a delighter in one part of the world may be a basic in another. Category Basic Explanation Must be factors that a customer implicitly expects to be there. If not present the customer will be dissatisfied or even disgusted. Performance More/faster/easier are examples of such ‘better’ factors. Delighter Unexpected factors. Example Clean sheets in a hotel; windscreen washers in a car; a tuner on a radio. Speed of check-in at a hotel; fuel consumption; ease of tuning on a radio. Wine or flowers waiting in a hotel room; silence when closing a car door; a radio that tunes itself.

The Kano Model – Top Tip: To test if a characteristic or factor is basic, performance or delighter ask two questions: How do you feel if it is absent? How do you feel if it is present? If 1 = bad and 2 = neutral – it is a basic If 1 = neutral and 2 = bad – it is a delighter If the answer is ‘it depends’, it is performance

Voice of the Customer (Vo. C) What? Vo. C tends to be used as a generic term used to identify any means of tapping into customer preferences and expression of value Why? Organisations tend to over-rely on customer satisfaction survey to gauge customer value. While customer surveys are useful, they lack depth and detail. If it is possible it is best to complement the information gathered through more qualitative approaches such as direct observation, interviews, or focus groups How? Talking to customers will yield rich information and insight. The difficulty comes with analysing qualitative data, making overall sense of it. However, if you can use this method to tease out key value criteria, you can then use the Vo. C template to compare yourself to your competitors, your best suppliers and against your own expectations.

Voice of the Customer (Vo. C) Template "Value Rank Criteria" Company XX Performance vs. Your Expectations Our Competitors Your Best Other supplier Better than Same as Worse than Innovation 5 Reliability 2 Speed 1 Price 4 Support 3 Top Tip: This exercise & analysis will generate very different internal discussions with regard to customer value.

Failsafing (or Poke Yoke) What? A failsafe device is one that literally prevents defects from being made. It undertakes 100% inspection and either stops or gives warning when a defect is discovered Why? It does not rely on the fallibility of human memory or action. A classic example is a three pin plug which only fits one way into a socket – the right way! How? Failsafing should be designed into processes wherever possible.

Failsafing Devices There are three types of failsafing devices: • • Fixed value – makes it clear when part is missing or not used • Contact – makes contact with every product or has a physical shape that inhibits mistakes Motion – automatically ensure the correct number of steps have been taken Examples of some horticulture related failsafe devices: Type Contact Control Safety device on lawn mowers Warning Failsafe Device Fixed value Pre-dose pesticides or water? Audible alarms in case of failsafe/pre-dose failure Motion step

Examples of Failsafing Devices

Project Charter What? The purpose of the project charter document Reasons for undertaking the project Objectives (and constraints) of the project The main stakeholders In-scope and out-of-scope items Risks identified early on Target project benefits High level budget and spending authority.

Project Charter Why? The three main uses of the project charter are: To authorise the project - using a comparable format, projects can be ranked and authorised by Return on Investment Serves as the primary sales document for the project - stakeholders have a 1 -2 page summary to distribute, present, and keep handy for fending off other runs at project resources Serves as a focal point and anchor throughout the project. It is a baseline that can be used in team meetings and in change control meetings to assist with scope management (and mitigate against scope creep). Top Tip: The project charter is a useful guidance tools to start any change or improvement. However it is not rigid and will evolve as more facts are discovered.

Mapping What? Mapping is used to analyse value streams and identify waste and improvement opportunity Why? Mapping encourage us think end to end, horizontally. Traditional management practice has encouraged us to divide organisations into separate functions or departments. Sometimes people feel more loyalty to their department than to their organisations Mapping enable us to ‘see the whole’ How? There a whole range of mapping techniques

Mapping Technique What is it? Value Stream or Big Picture Mapping (VSM) Brown Paper Mapping (BPM) Application A bird’s-eye view of a value stream or end to end process. Carried out by a cross functional This is the archetypal value stream map and is team (operations, technical, planning etc. ) mapping key data on a single product (or product very powerful where there are lots of group). complexity and interdependencies. Often a current state is compared with an aspirational future state. Standard icons represent inventory, decision points, storage etc. A high level, visual way of understanding what steps occur in a given process, who is Value lies in: ease of use, speed at which need responsible for completing the steps, what inputs are required, what outputs occur and for improvement is identified; provides a focal associated issues. point for a consensus view; enables discussion about the issues the map highlights. Supplier Inputs Process Outputs Chart (SIPOC) Process Activity Mapping Alternative simple bird’s-eye view process overview map. Useful at the outset of improvement work to help scope and bound the project. Involves following work through every part of the process and recording: the distance travelled within each step; time elapsed from when the step starts and ends; and the number of people required to make that step happen. Identifies how much of the process is value adding and how much is waste. Spaghetti diagram Visual representation of movement to identify the waste of transportation. Four fields mapping Identifies not just who does what and when but also the information flow or who needs to know what and when. Often highlights the need for work place reorganisation. Useful in a service environment where the primary currency is information. Demand amplification Identifies anomalies in information flows particularly between companies in a single supply chain. If explored examined with supply chain partners it can lead to a radial rethinking of the information that is exchanged between them, often with enormous benefits.

Value Stream Mapping (VSM) What? Clear way to illustrate the current and future state of a process that shows both information and physical flows Why? Identifies wastes and complexities and therefore opportunities for improvement and simplification How? Simple boxes are used to indicate stages.

Value Stream Mapping - Approach Begin with a ‘current state’ – pick a product Draw a factory symbol for main suppliers at the top left Draw distribution to signify the main customer at top right Along the bottom of the page list the main stages of manufacture (one to a box) Below each stage find out and list cycle time for the chosen product, changeover time, OEE or percentage availability and the available time per week Between the stages show the current inventory holdings in a triangle Draw in the material flows For supply and deliveries – draw in a truck symbol and label each with the frequency of delivery At the bottom of the page, draw a zig-zag line to correspond with the production stages and to indicate the VA and NVA time Find out the scheduling information. Draw narrows connecting the customer with Production Control to indicate forecasts and orders. Label the frequency Do the same for the supplier Now analyse and develop a concept diagram of the ‘future state’.

Fruit End to End Value Stream Map (VSM)

Mapping an Entire Supply Chain

Brown Paper Mapping (BPM) What A high level, visual way of understanding what steps occur in a given process, who is responsible for completing the steps, what inputs are required, what outputs occur and associated issues Why? A good way to start any type of improvement project The act of creating a BPM energises the team and helps them understand the need for improvement It becomes a great focal point and enables a collective discussion about the issues the map has highlighted. Top Tip: Often people will argue that they already know and understand the process they work in. What a Brown Paper Mapping exercise shows is that people tend to understand their part of the process but don’t really understand how it fits into the bigger picture. The exercise generates clarity around why certain things are done in certain ways. It can help bring teams to bond.

Brown Paper Mapping (BPM) How? All you need are: A large piece of paper (it can be brown but doesn’t need to be!) Some Blu-Tack and/or sellotape Different coloured post-it notes Some big felt pens.

Facilitating BPM If the mapping is being carried out amongst a team of people, it is useful to have an overall facilitator and for others to be assigned roles. The facilitator’s role is to: Inject enthusiasm into the team at the outset and ensure engagement Ensure that the post-it notes have been put in the right sequence (steps will inevitably be discussed in the wrong sequence) Record the amount of time that elapses between steps and activity timings. This is recorded at the end by drawing a line between activities and marking the timings above the line Give each role (which may be one or two people) a different colour post-it note to use.

Different Roles in a BPM Exercise Designated Roles Definition Issue Any aspect of the process that is a cause for concern – a problem, opportunity, uncertainty, or controversy. These are important to capture as these are things that will need to be resolved to improve process flow. Anything (a document, machine or piece of information) that is required in order to make an activity or step happen. Inputs Outputs Activity/Step Responsibility Bottlenecks Measurements An output is the result of an activity or step. It is usually a document (actual or electronic). It may simply be a completed input document. Involves an element of doing or acting on the product or service that is flowing through the process. A person who is in charge of the step or activity. Responsibilities should only be recorded when the activity influence the process. Anything in the process that restricts the flow of work. In a physical flow these are identified through a build-up of WIP. In an information flow they are identified by a backlog. Identify when an aspect of the process is measured by a Key Performance Indicator (KPI) or even if it is simply where data is collected and reported. Top Tip: Facilitators should keep an eye out for individuals who do not seem engaged in the BPM exercise. If they have nothing to do, ask them to ask probing questions.

Example of BPM Top Tip: At some point you may wish to record your BPM onto some software e. g. Excel or Visio. Using different colour post-it notes will help to very quickly reach some conclusions about what to do next. If you see one aspect of the process shrouded in a haze of yellow (issue) notes, there is a great need for further investigation in this area. You will find that you constantly return to the BPM to clarify issues. It is a living, breathing document that provides a visual opportunity to collectively discuss next steps while providing you with the data to make informed decisions.

Process Activity Mapping (PAM) What? PAM encourages work through every part of the process in detail to identify waste and opportunities for improvement Why? Sometimes we need to drill down into the detail to really understand what is happening - the devil is in the detail.

Process Activity Mapping (PAM) How? Follow the work through every part of the process and record: the distance travelled within each step; time elapsed from when the step starts and ends; and, the number of people required to make that step happen This map cannot be created by gathering a team together and talking through the process. The process must be walked through at the ‘gemba’ in order to capture steps and timings Using a clipboard and a PAM worksheet, start at the beginning of the process (you may have already mapped as a BPM). You will need to talk to the people who work within the process about their job Record every distinct step as a new row on your worksheet and ask workers to help or confirm the description of that step Time each step using a stopwatch and put this into the time taken column. If you are tacking a document through an information process you could mark the document with a red stick and ask people to record the time it reaches them. You are recording real time information While you are completing the PAM take the opportunity to ask workers probing questions about why they are doing the things they are doing and note down any issues on your worksheet Finally, record the area where the step takes place and mark down how many people are required to undertake this step.

Example of a PAM Worksheet Step 1 2 3 4 5 6 7 Activity Area Description Time Distance No. taken (Metres people (mins, involved secs) Flow (tick one per step) Comments/ Issues Operation Transport Inspection Storage Delay

Example of a PAM Worksheet Once you have gathered the information, classify each step as an operation, transport, inspection, storage or delay using the following: Operation Refers to a step that is value adding i. e. where a difference is made Transport Inspection Refers to a step which involves moving an object or piece of information from one part of the process to another Refers to an object or piece of information being checked before it is allowed to proceed onto the next step Storage Refers to an object or piece of information being put away for use at a later time Delay Refers to a step where no activity is taking place. The object of piece of information is simply waiting between steps Top Tip: It is important that the time between steps is recorded as well as the actual activities. The time that elapses between sending an email and the email being opened, for example, should be recorded as delay.

Top Tip: Example of a PAM You will need to decide whether some of the steps you have categorised as storage, transport, delay and inspection are actually non value adding (NVA) or non-value adding but necessary (NNVA) Top Tip: Once you analyse your completed worksheet you will find that only a small proportion of the overall process can be classified as an operation that is truly value adding. The rest is an opportunity for improvement.

Example Results From a Fruit Grower 32 steps, 8 touches and 3. 34 days (out of which only 1% is VA):

Spaghetti Diagram What? The spaghetti diagram is a tool to help you establish the optimum layout based on observations of the distances travelled Why? Spaghetti diagrams expose inefficient layouts and identify large distances travelled between key steps. Identifies the need for workplace reorganisation How? Begin by drawing (or acquiring) a diagram of the floor plan of the area you are evaluating. Decide what you are going to observe e. g. product, staff or customer. You may decide to analyse a number of these simultaneously by using different coloured lines to represent each flow Draw lines on the diagram to represent the main flows of the product, staff member, or customer By analysing the lines, you can identify any areas with unnecessary movement. This helps staff decide whether to bring two points closer together and optimise the flow. Top Tip: Draw lines on it to map the flow of movement ‘as it is now‘. You assess this to help redesign the process and use it as a starting point for redrawing a new spaghetti diagram to reflect the ‘to be' flow.

Example of a Spaghetti Map – Before and After

Four-Fields Mapping (4 FM) What? The Four-Fields Map is a graphical technique most commonly applied to cross-functional processes. Unlike more traditional project planning methods that apply work breakdown structures and critical path analysis, the Four-Fields Map emphasizes the elements of tasks, teamwork, and quality. Why? When you apply the Four-Fields Map to a new process, it provides you with the best chance of getting the process correct the first time. Many times when teams need to create new processes, they do it in an ad-hoc and non-holistic manner. This tool supports you in creating a process (with key tasks, ownership, and standards) from start to finish. When you apply this tool to sub-optimal processes, it drives process improvement. This tool allows you to examine existing processes to ensure that you have identified all key tasks and that resources are in place to execute at the right time in the process. By measuring the quality of critical tasks against standards, you will have a consistent approach for executing the process. Incorporating this tool into key processes ensures that stakeholders know ahead of time how you will measure the success of the task.

4 FM How? The tool describes the execution of a process across four areas: Area Description Phases Discrete states over time that define where in the process the team is executing. Tasks Significant deliverables within the flow of the process People The functions or individuals responsible for delivering the task within the phase. Typically, as the work flows through the process, the individuals assigned to the task will be the lead of the process for the duration of that task Standards The deliverables, documents, or specifications by which you will judge the quality of the tasks of the process

Constructing a 4 FM Construct a Four-Fields Map using the following steps: Identify a target process and define the process objective(s) Identify a flowchart of significant tasks and decisions points Map the tasks and decision points in a matrix of the product development phases against the team members responsible for their delivery. The tasks are connected to indicate the process flow over time. For each task, record the elapsed time (in days) and the level of effort (in person days) required to complete it For significant tasks, record the documented standard by which you can determine their quality (in the right-hand column). Top Tips: The Four-Fields Map is a snapshot in time. As changes occur, you should update the tool to reflect the latest process information. Because the tool is focused on tasks, people, and standards, it does not include some of the elements of more traditional project management, including work breakdown structures, identification of the critical path, key dependencies, and oversight by the program manager. While the process measures critical tasks against a standard, it does not ensure the quality of the standard.

Example of 4 FM in a Sourcing Process Top Tips: Things to look out for when Four Fields Mapping: • The Seven Wastes (Transport, Inventory, Motion, Waiting, Over-production, Overprocessing and Defects) • Participants and stakeholders who aren’t involved early enough in the process • Sequential communication followed by sequential activity • Lack of standards • Lack of ‘Voice of the Customer’ • Unclear accountability and responsibility • Absence of risk assessment and management

SIPOC (Suppliers, Inputs, Process, Outputs, Customers) What? A SIPOC defines the scope of work for a team and identifies at a high level the potential gaps (deficiencies) between what a process expects from its suppliers and what customers expect from the process Why? It enables all team members to view the process in the same light Visually communicates the process at a high level and defines the scope of improvement efforts The first step in cause-and-effect thinking: contributes to understanding how the suppliers, inputs, process steps, and outputs affect customer(s) needs. Begin to identify gaps such as: • Inputs we don’t need but receive • Outputs that customers don’t want but receive anyway • Process steps that are completed but add no value

SIPOC How? Step 1 2 3 4 5 6 7 What to do: Name the process Indicate the start/stop, or the scope of the process Indicate the output(s) of the process Indicate the customer(s) of the process Indicate the supplier(s) of the process Indicate the input(s) of the process Indicate the five to seven highest-level steps in the process as they exist today Tip Use verbs/adjectives What are the triggers that initiate and end the process? Use nouns – what is it this process does? Whom does this process affect/benefit? Which individuals/teams provide inputs into this process Use nouns – what is needed to execute this process and deliver the outputs? Use verbs/adjectives – how does this process operate?

Example SIPOC in Financial Services

Demand Amplification (DA) What? It is a map to analyse the disturbance on the supply chain or reorder activity Why? DA is based on the work of Jay Forrester and is sometimes known as the Forrester or Bullwhip Effect. Forrester's research showed that demand could be erratic with peaks and troughs commonplace within most organisations. These variations in requirements and supply are amplified within the supply chain when re-orders are made. How? The map is a graph with a line showing elements such as customer forecasts, shipments to customers, or orders for raw materials over a period of time shown on the x-axis Distortion between inventory levels is shown as a result of poor communication and an inability to schedule accurately The flatter the lines displayed the Leaner the system and more accurate the forecast.

Demand Amplification (DA) Map Can be used if you need to assess the variance between actual orders and production plans, shows the “bullwhip” or “Forrester effect” where demand is amplified the further one gets away from the original source.

Example of Demand Amplification in a Fruit Supply Chain Using a Demand Amplification Index to compare levels of variation

Runner, Repeater, Stranger (RRS) What? Also called Runner, Repeater, Rogue (RRR) (if you are partial to alliteration) Like so many powerful concepts, the core idea is very simple Rather than introduce a single solution to address a range of problems, often leading to compromise and a suboptimal result, it’s better to categorise problem areas based on specific characteristics and to introduce different solutions optimised for each Why? RRS is a useful way of scheduling production or analysing demand How? In production or manufacturing environments: Runners Repeaters Strangers Products with regular, consistent demand sufficient volume to justify dedicated resources. Products with regular demand but at a volume that doesn’t justify dedicated resources Products with erratic demand or low volumes

RRS To optimise the production process, a different solution is employed for each category: Dedicated production lines or cells are set up to process runners on an ongoing basis Shared production cells are established to process repeaters in regular scheduled slots and A standalone, multifunctional cell is introduced to process strangers as demand dictates. In each case, the process flow, cell layout, level of automation and operator training is tailored to the specific characteristics of each product category.

Broader Applications of RRS The RRS concept can be used to identify and introduce process improvements in any organisation Sales teams can adapt the Runners, Repeaters, Strangers framework to handle sales calls. Routine incoming sales calls are handled by a dedicated sales team, less frequent sales calls, perhaps in response to seasonal promotional activity, are routed to a sales team with specific product knowledge while nonstandard enquiries are passed to the most experienced sales staff. Call handling procedures are used to efficiently route the calls through to the sales team with appropriate training, skills and experience to maximise sales Credit control tasks such as issuing invoices, delivering statements, sending reminder letters, making phone calls, sending demand letters, meeting late payers and initiating legal proceedings can be categorised as either Runners, Repeaters, or Strangers depending on volume and frequency of effort. Specific procedures can be put in place optimised for each category of task. RRS also applies to procurement: In-house procedures can be optimised for items ordered weekly such as raw material for production (runners), items ordered regularly but infrequently such as office stationary (repeaters) and items ordered infrequently such as production equipment

A RRS Examples from Housing Benefits The challenge was for: All claims to be processed within 21 days 100% right first time At no additional cost The ‘current state’ process:

What we found in Housing Benefits Claims There were 3 types of claim going through the current process: 1. Repeat claims with no change in circumstances 2. Repeat claims with a change in circumstances 3. New claims These were classified as RRS:

The RRS Solution Led to a Significant Lead Time Reduction 86 9 days lead time reduction

RRS - Horticulture Examples Refer to the Case Study about the Old Railway Line Garden Centre. They operate an RRS approach regarding stock management, re-ordering, display layout for permanent benches, and ‘hot spots’

Problem Solving & PDCA (Plan, Do, Check, Act) What? PDCA is (also called a plan–do–study–act (PDSA), Deming or Shewhart cycle. It is a cyclical approach to problem solving Why? It encourages a systematic approach with proper consideration of the extent of the problem before jumping into solutions How? PDCA is a four–step model for carrying out change. Just as a circle has no end, the cycle should be repeated again and again for continuous improvement The four phases in the Plan-Do-Check-Act Cycle involve: Plan Do Identifying and analysing the problem. Developing and testing a potential solution. Check Measuring how effective the test solution was; analysing whether it could be improved in any way; detecting any unexpected consequences. Act Implementing the improved solution fully.

PDCA Top Tip: It is important you are quite clear exactly what ‘Do’ means. Do means Try or Test. It does not mean Implement fully. Full implementation happens in the "Act" phase. Many of the other Lean techniques can be used to help with the various stages of the PDCA cycle.

Fishbone (Ishikawa) Diagram What? Also known as a cause and effect or Ishikawa diagram, the fishbone diagram identifies many possible causes for an effect or problem. It can be used to structure a brainstorming session. It immediately sorts ideas into useful categories Why? To identify root cause of a problem How? Materials needed: flipchart or whiteboard, marker pens Agree on a problem statement (effect). Write it at the centre right of the flipchart or whiteboard. Draw a box around it and draw a horizontal arrow running to it Brainstorm the major categories of causes of the problem. If this is difficult – see right: Use generic headings such as: Methods Machines (equipment) Manpower (people) Materials Measurement Environment NB – There are many ways in which you can categorise your causes.

Fishbone (Ishikawa) Diagram cont … Write the categories of causes as branches from the main arrow Brainstorm all the possible causes of the problem asking, ‘why does this happen? ’ As each idea is given, write it as a branch from the appropriate category. Causes can be written in several places if they relate to several categories Again ask ‘why does this happen? ’ about each cause and write sub–causes branching off the causes. Continue to ask ‘why? ’ and generate deeper levels of causes Layers of branches indicate causal relationships. Top Tip: The more specific the problem statement the better. General outcomes will identify general causes; specific outcomes will identify specific causes.

5 Whys What? This simple technique can often quickly direct you to the root of the problem. So, whenever a system or process isn't working properly, give it a try before you embark on a more in-depth approach Why? To identify the root cause of a problem How? The 5 Whys is a simple, practical tool that is very easy to use. When a problem arises, simply keep asking the question "why" until you reach the underlying source of the problem, and until a robust counter-measure becomes apparent Keep asking "why" until you feel confident that you have identified the root cause and can go no further. At this point, an appropriate counter-measure should become evident.

5 Whys Top Tip: Each time you ask ‘why’, look for an answer that is grounded in fact: it must be an account of things that have actually happened, not events that might have happened. This prevents the 5 Whys becoming just a process of deductive reasoning, which can generate a number of possible causes and, sometimes, create more confusion. Top Tip: You can use the 5 Whys in troubleshooting, quality improvement and problem solving, but it is best for simple or moderately difficult problems.

Solving Problems Using 5 Whys in Horticulture ……. . After mapping a process, a common mistake is to jump to solutions without addressing the underlying cause – a quick fix will not stop the problem occurring – for example: Positioning of a box to catch fruit which accidently falls off the conveyor – perhaps you should fix the reason why the fruit is falling in the first place? To see 5 Whys in action, refer to: Lean Manufacturing, 2008, Agriculture & Horticulture Development Board: http: //www. hdc. org. uk/sites/default/file s/research_papers/PC%20257%20 final%2 0 report%202008. pdf

5 S and Visual Management What? 5 S is a system to reduce waste and optimize productivity through maintaining an orderly workplace and using visual cues to achieve more consistent operational results. Why? At first glance, 5 S is about good housekeeping. However, really it is about making orderly standardised operations the norm rather than the exception 5 S has a direct impact on safety, cost, quality, delivery, and on OEE (Overall Equipment Effectiveness).

5 S and Visual Management How? Step Sort Set in Order Shine Explanation Tips Focuses on eliminating unnecessary items from the workplace that are not needed for current production operations. An effective visual method to identify these unneeded items is called "red tagging", which involves evaluating the necessity of each item in a work area and dealing with it appropriately. A red tag is placed on all items that are not important for operations or that are not in the proper location or quantity. Once the red tag items are identified, these items are then moved to a central holding area for subsequent disposal, recycling, or reassignment. Focuses on creating efficient and effective storage methods to arrange items so that they are easy to use and to label them so that they are easy to find and put away. Set in Order can only be implemented once the first step, Sort, has cleared the work area of unneeded items. Once the clutter that has been clogging the work areas is eliminated and remaining items are organised, the next step is to thoroughly clean the work area. Daily follow-up cleaning is necessary to sustain this improvement Organisations often find that sorting enables them to reclaim valuable floor space and eliminate such things as broken tools, scrap, and excess raw material. Standardise The next step is to standardise the best practices in the work area. Standardise creates a consistent approach with which tasks and procedures are done. Sustain Making a habit of properly maintaining correct procedures is often the most difficult S to implement and achieve. Changing entrenched behaviours can be difficult, and the tendency is often to return to the status quo and the comfort zone of the "old way" of doing things. Sustain focuses on defining a new status quo and standard of work place organisation. Strategies for effective Set In Order include painting floors, affixing labels and placards to designate proper storage locations and methods, outlining work areas and locations, and installing modular shelving and cabinets. Working in a clean environment enables workers to notice malfunctions in equipment such as leaks, vibrations, breakages, and misalignments. These changes, if left unattended, could lead to equipment failure and loss of production. Some of the tools used in standardizing the 5 S procedures are: job cycle charts, visual cues (e. g. , signs, placards, display scoreboards), scheduling of "five-minute" 5 S periods, and check lists. Tools for sustaining 5 S include signs and posters, newsletters, pocket manuals, team and management checkins, performance reviews, and department tours.

Visual Management Examples in Horticulture ‘Standard’ of when to pick tomatoes = ‘green’ ‘Pictorial or Symbol’ standards for use on a site where the workforce is international and speak many languages. Good practice or common mistakes can be included here Signage to depict product groups (for example, whilst growing or in garden centre displays).

Failure Mode and Effect Analysis (FMEA) What? FMEA is a step-by-step approach for identifying all possible failures in a design, manufacturing, or assembly process, or in a product or service. Why? FMEA documents current knowledge and actions about the risks of failures for use in continuous improvement. FMEA is used during design to prevent failures. Later it’s used for control, before and during ongoing operation of the process. Ideally, FMEA begins during the earliest conceptual stages of design and continues throughout the life of the product or service.

FMEA How? Step 1 Explanation Review the process - use a process flowchart to identify each process component. 2 Brainstorm potential failure modes - review existing documentation and data for clues. List potential effects of failure - there may be more than one for each failure. Assign Severity rankings - based on the severity of the consequences of failure. Assign Occurrence rankings - based on how frequently the cause of the failure is likely to occur. Assign Detection rankings - based on the chances the failure will be detected prior to the customer finding it. Calculate the Risk Priority Number (RPN) - Severity X Occurrence X Detection. Take action - implement the improvements. Calculate the resulting RPN - re-evaluate each of the potential failures once improvements have been made and determine the impact of the improvements 3 4 5 6 7 8 9

Quick Changeovers (SMED) What? Changeover is the process of converting a line or machine from running one product to another SMED is an abbreviation of Single Minute Exchange of Dies. It is a method to reduce set-up time. This method was developed by Shigeo Shingo in Japan and was applied first in the automotive industry At one time, set-up times became a big problem during the manufacturing of pressed car parts like doors, boot covers and so on. This meant a machine stop of about 24 hours when a press needed to be set up for the production of another part. By applying the SMED method the set-up times were reduced to a few minutes Nowadays the SMED method to reduce set-up time is widely spread across the world and applied with success in different kinds of industry Why? The purpose for reducing changeover time is not for increasing production capacity, but to allow for more frequent changeovers in order to increase production flexibility. Quicker changeovers allow for smaller batch sizes. The benefits of quick changeover include: Reduced lead times and improved responsiveness to customers Flexibility to respond to changes in demand Improved product quality from quicker information feedback Improved visual control and plant communication Reduction of indirect costs for material movement, counting, and transaction processing.

Quick Changeovers (SMED) How? The secret to quick changeover (SMED) system is the distinction between changeover work that occurs while the machine is not running, called Internal Setup, and preparatory work that occurs while the machine is running, called External Setup At the point in time when SMED was developed, almost all changeover work was performed while the machine (press) was down The steps to quick changeover are: Setup reduction concepts are explained to a group of employees Each setup activity is timed and documented with a stopwatch and/or videotape The videotape is shown to employees. Video is effective because it is an unbiased view Setup activities are analysed and separated into two categories, internal and external Standardized operating procedures are developed to implement the improvements. Formula 1 Pit Stop is a great example of Quick Changeover:

Quick Changeovers in Horticulture …. . ‘Production lines’ could change up to 20 times per day Shortening changeover times can save: Increase machine output thereby reducing the need to potentially invest in additional capital equipment Faster response to meet customer needs and reducing the need for high stock levels Increased flexibility Staff waiting/standing idle Improved customer satisfaction More information can be found in: Potato Case Study Flowers Case Study Lean Manufacturing, 2008, Agriculture & Horticulture Development Board.

Cellular Layout What? Cells might be designed for a specific process, part, or a complete product. They are favourable for single-piece and one-touch production methods and in the office or the factory. Because of increased speed and the minimal handling of materials, cells can result in great cost and time savings and reduced inventory Cellular design often uses group technology, which studies a large number of components and separates them into groups with like characteristics. Cellular design also uses families-of-parts processing, which groups components by shape and size to be manufactured by the same people, tools, and machines with little change to process or setup. A Lean method of producing similar products using cells, or groups of team members, workstations, or equipment, to facilitate operations by eliminating setup and unneeded costs between operations. Why? How? The flow patterns arrange the process steps in a natural order, link process steps to minimise cycle time and travel distance, eliminate crossover points, and simulate a continuous flow process by putting internal customers and suppliers next to each other

Cellular Layout Regardless of the cell design (straight line, u-shape, or other), the equipment in the cell is placed very near one another to save space and time. The handling of materials can be by hand, conveyor, or robot. Cellular design directly challenges the way in which many manufacturing facilities were laid out, with similar machines clustered together into different departments, meaning the product moved from department to department in large batches.

Horticulture Examples of Cellular Layout A plant nursery in Brecon is located on the side of a mountain, meaning the ground at the bottom of the site has different characteristics to that at the top. Plants have been grouped into categories such as bog, for plants at the bottom where moisture gathers and meaning they require less water. This facilitates easier maintenance of the plants by the small team The Old Railway Line Garden Centre group their plants based upon specific characteristics which the gardening consumer values e. g. Alpines, Ground Cover, Wildlife & Bees etc. and how they can be easily maintained by the staff.

Glossary of Terms & Additional Information The purpose of this section is to provide a glossary of the terms used within the toolkit and to signpost readers to other useful information

Glossary of Terms, Tools & Techniques (1) Term/Tool/Technique Definition 5 Lean Principles The Lean Principles come from the book Lean Thinking: Value, Value Stream, Flow, Pull, Perfection 5 S & Visual Management Maintaining an orderly workplace and using visual cues to achieve more consistent operational results 5 Whys A simple technique that helps to quickly direct you to the root cause of the problem Cellular Layout A Lean method of producing similar products using cells, or groups of team members, workstations, or equipment, to facilitate operations by eliminating setup and unneeded costs between operations. Customer Value What does and does not create value from the customers’ perspective Demand Amplification Analyses the disturbance on the supply chain or reorder activity

Glossary of Terms, Tools & Techniques (2) Term/Tool/Technique Definition Failure Mode & Effect Analysis A step-by-step approach for identifying all possible failures in a design, a manufacturing or assembly process, or a product or service. Sometimes used in risk management Failsafing (or Poke Yoke) A failsafe device is one that literally prevents defects from being made Fishbone (Ishikawa) Diagram Also known as a cause and effect or Ishikawa diagram, the fishbone diagram identifies many possible causes for an effect or problem Gemba The ‘workplace’ in Japanese The Kano Model Theory of product and service design geared to customer requirements Kaizen or Continuous Improvement Small incremental improvement steps Mapping Variety of methods used to map business processes and identify wastes. Examples include: Value Stream, Process Activity, Brown Paper, Spaghetti, 4 Fields, SIPOC ………. Muda ‘Waste’ in Japanese

Glossary of Terms, Tools & Techniques (3) Term/Tool/Technique Definition Necessary but Non-Value Add Activities or process steps that create no value but are unavoidable Non-Value Add Steps create no value and are avoidable – pure waste Problem Solving & PDCA (Plan, Do, Check, Act) Cyclical approach to problem solving Project Charter Summary Project Management tool Quick Changeovers Changeover is the process of converting a line or machine from running one product to another. Speed is key Respect for People Lean is all about giving workers their right to use their natural ingenuity and talent in the workplace and not just their hands Right First Time (RFT) and Zero Defects Relates to ‘quality’ standards Runner, Repeater, Stranger Categorise problem areas based on specific characteristics and to introduce different solutions optimised for each

Glossary of Terms, Tools & Techniques (4) Term/Tool/Technique Definition Supply Chain Management The active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage Total Productive Maintenance (TPM) Planned preventative maintenance Value Add Activities or processes that add value for the customer Voice of the Customer (Vo. C) Customer preferences and expression of value.

Useful Links and Resources (1) Source Information/support Link Double H Nurseries (Exemplar Case Study) Information about their lean production methods and a useful video on how they produce orchids. http: //www. doubleh. co. uk/Production_Syste ms. html http: //www. doubleh. co. uk/Production_Syste ms_Orchids. html Food Centre Wales (Horeb Business Park, Horeb Llandysul, SA 44 4 JG) - Factory design and layout - Process (re)design - Quality systems (HACCP, BRC, Organic certification) http: //www. foodcentrewales. org. uk/ Food Chain Centre Applying Lean Thinking to the Fresh Produce Industry (PDF) http: //www. ifr. ac. uk/waste/Reports/Fresh% 20 Produce. Applying%20 Lean%20 Thinking. pdf Food Manufacture Food & drink sector news and information http: //www. foodmanufacture. co. uk/ Fresh Produce Journal Regular and up-to-date market information on the fresh produce industry http: //www. fruitnet. com/fpj Greenhouse Canada Getting Lean in greenhouse horticulture (Webinar) https: //www. youtube. com/watch? v=f. Ax 9 Uq 7 NOCs Greenhouse Management (USA) Article: Do your production plans include Lean Flow? http: //www. greenhousemag. com/gm 0414 maximizing-efficiencies. aspx

Useful Links and Resources (2) Source Information/support Link The Grocer Provides grocery retail information and commodity information http: //www. thegrocer. co. uk/ Growing Jobs – Good workforce practice in horticulture Good practice in Lean (and Ii. P) http: //growingjobs. org/lean-techniques/ Hoffman Nursery North Carolina (Author: Scott Epps) Lean Flow Management for Production Efficiency http: //aggiehorticulture. tamu. edu/syllabi/431/Lean. Flow -Epps. IPPS%20 Vol%2059 -2009. pdf The Horticulture Development Board Lean Manufacturing - Achieving efficient use of labour in protected edible crops (PDF) http: //www. hdc. org. uk/sites/default/files/re search_papers/PC%20257%20 final%20 report %202008. pdf The Horticulture Development Council Horticultural arm of the Agricultural and Horticulture Development Council. Provides market and technical information to growers http: //www. hdc. org. uk/ The Horticultural Trades Association Lean in horticulture – retailers and growers http: //www. thehta. org. uk/page. php? pageid=164 Horticulture Week Making Lean Work http: //www. hortweek. com/making-leanwork/article/1002412 National Farmers Union Better ways of doing business in the horticulture sector (PDF) http: //www. nfuonline. com/catalyst-forchange-better-ways-of-doing-business-in-the -horticulture-and-potatoes-sectors/

Useful Links and Resources (3) Source Information/support Link S A Partners LLP For over 20 years seen as specialist Lean Consultants, globally recognised for performance improvement work in the food and drink sectors. Head Office in Caerphilly, Wales http: //www. sapartners. com/ Texas A & M University (USA) Academic paper on Lean in horticulture http: //aggiehorticulture. tamu. edu/syllabi/431/Lean. Flow -Epps. IPPS%20 Vol%2059 -2009. pdf TNO Innovation for Life (The Netherlands) Demand flow and Lean factory https: //www. tno. nl/en/focusarea/urbanisation/buildingsinfrastructures/tno-a-wealth-of-innovationsfor-greenhouse-horticulture/demand-flowlean-factory/

References/Bibliography Agriculture & Horticulture Development Board. 2008. Lean Manufacturing. Bicheno J. , and Holweg, M. 2009. The Lean Toolbox. 4 th Edition. PICSIE Books. Bicheno J. 2008. The Lean Toolbox for Lean Service Systems. PICSIE Books. Bicheno J. 2002. The New Lean Toolbox. Buckingham: PICSIE Books. Bicheno J. 1998. The Lean Toolbox. Buckingham: PICSIE Books. Womack, J. P. , Jones & D. , T. 2000. Lean Thinking. Free Press. Womack, J. P. , Jones, D. , T. and Roos, D. 1990. The Machine that Changed the World. Free Press.