Kraft Foods Internship Report Out 2009

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Kraft Foods Internship Report Out 2009 Presented By: Carlos Miravite September 3, 2009 Ontario Mixing Center

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Kraft Foods Internship Report Out 2009. Presented By: Carlos Miravite September 3, 2009 Ontario Mixing Center. Ontario Branch Roughly 100,000 sq. ft 556 customers 40 employees 3 lost time incidents 7 recordable Heaviest day for picking are Monday, Thursday, Friday - PowerPoint PPT Presentation

Transcript of Kraft Foods Internship Report Out 2009

Kraft Foods Internship Report Out 2009

Presented By:Carlos Miravite

September 3, 2009Ontario Mixing Center

General Information Jeffrey Warchuck

MCL

Fiona TangLS

Tracy BookerLA

Tanya RaaschLC

WarehouseDrivers

Jeffrey WarchuckMCL

Fiona TangLS

Tracy BookerLA

Tanya RaaschLC

WarehouseDrivers

• Ontario Branch– Roughly 100,000 sq. ft– 556 customers– 40 employees– 3 lost time incidents– 7 recordable– Heaviest day for picking are

Monday, Thursday, Friday– On a heavy day, volume can

range from 15,000 – 20,000 units

– On a light day, volume can range from 6,000 – 9,000 units

– WUPH for the month of August was 136

– DUPH for the month of August was 84

• Kraft Foods– Founded in 1903– 2nd largest food company – $42 billion revenue stream– 98,000 employees – 168 manufacturing and

processing facilities – CEO Irene Rosenfield

Internship Quick Recap• Worker Productivity – Recording Throw Rates

– Among the warehouse employees who is throwing the most, who is throwing the least?

– It is a marker of employee productivity defined by the number of cases thrown per hour.

• Re-launching Pallet Incentive Program– Comparing July vs. August, are we sending more pallets out rather than

bringing in?– Re-launching the program can there be a significant improvement from last

month’s results?

• Cart Retrieval Program – With the loss of carts, management along with sales, had to develop a way

to strategically deploy carts and secure our assets.– A daily count of carts coming inbound was kept for approximately 10 days. – As of today, all loads are being palletized, as the issue of carts are withheld.

Internship Quick Recap• Q3 Saturday Inventory – 6AM – 6PM

– Within that week, numerous cycle counts were done to ensure inventory accuracy and accountability.

– Using KWIC, line negative were cleared out, along with any remaining shipments.

– With Tracy taking the lead, short code dated items were processed and moved to liquidation and donation.

– As a result, the branch came up short in the amount of a -$523.• Branch to Branch Transfers

– At one point there was a major spike in branch to branch transfers in one week.

– Was inventory forecasted correctly to fulfill demand so that branches were not short or over on product?

– Part of this process included processing the shipping manifest and bill of lading via KWIC.

• Driver Ride Along– Andy – 16 hour day – 14 stops – approximately 4 hours behind schedule! – EZ – Murray

Internship Quick Recap• Mixing Center – Kraft in conjunction with TLC

– There are 7 mixing centers in the United States; Ontario being one of them.– Volume, on average is much greater than Ontario’s DSD. On a heavy day

about 60,000 units are pushed compared to our 15,000 – 20,000 units.– Work shifts are comprised of 3 shifts per day, with a Saturday and Sunday;

Ontario only has one shift, 5 days a week.– Ontario’s inventory is strictly cookies and crackers; on the other hand the

mixing center holds thousands of SKUs ranging from all types from the Kraft Foods BU network.

– The Kraft Foods mixing center management team is composed of Joie and her 5 person team.

– Dave, Thomas, Anita, Cornell, and Isabella are in charge of dry and cold product, vehicle sizing, and site planning (SLP).

– In conjunction with Kraft, the TLC team acts as a 3rd party logistics member; also with similar responsibilities.

– There is also a refrigerated mixing center that strictly handles cold product such as hot dogs.

Throw Rates – July vs. August

Throw Rates - July Distribution

915854

734

576

847

0

1159

1035

385

828

0

200

400

600

800

1000

1200

1400

Au Bahler Elston Garcia Guiterrez Nelson Prado Ritchie Thomas Trovao

Thrower

Rat

e

• A throw rate can be defined as a marker of employee productivity presented by number of cases thrown per hour.

• My daily duty was to record throw rates and determine what will become the status quo for throwing.

• I discovered that a good, yet average number of cases thrown ranges among the 1000s.

• Top performer for the month of August was David Trovao; with Johnnie Ritchie not too far behind.

Throw Rates - August Distribution

965

800

582

680731

0

952

1045

922

1325

0

200

400

600

800

1000

1200

1400

Au Bahler Elston Garcia Guiterrez Nelson Prado Ritchie Thomas Trovao

Thrower

Rat

e

Pallet Incentive Program – July vs. August• Following up the project first created by Fiona, I was in charge in re-launching the pallet

incentive program amongst the drivers.• The goal was to reduce the cost of pallet spending, which was $3093 in the month of

August. The estimated budget was $1045. The cost per pallet is $3.80.• July, net total resulted in a -233 pallets returned; with less than one pallet being brought

back per route per driver.• August, although still in the negative, a significant improvement was seen as news of the

program built steam.• There is still a lot of room for improvement.

Pallet Incentive Program RecapMonth July August Total Inbound 1560 1839Total Outbound 1793 1932Net Total -233 -93

And the winners are…

Total % Total NetARREDONDO 600.00% WRIGHT 326CASTILLO 314.29% JOSEY 76WRIGHT 241.92% PREVOST 24JOSEY 191.46% CASTILLO 16PREVOST 138.98% ARREDONDO 6HOUCHENS 100.00% HOUCHENS 1ZELLNER 98.78% LOPEZ 0ANDERSON 86.88% QUIROZ 0MURRAY 71.35% SEWELL 0MAGANA 70.00% ZELLNER -2WEST 65.89% DeARMAN -4SHIN 64.29% WATTERS -5THOMPSON 56.79% PEREZ -5HOYT 52.20% EVANS -6QUIROZ 50.00% PETAIA -8PETAIA 30.77% MAGANA -14NELSON 9.62% ANDERSON -20DOUGLAS 7.02% THOMPSON -34THOMAS 2.44% THOMAS -39DeARMAN 0.00% DOUGLAS -52EVANS 0.00% MURRAY -54LOPEZ 0.00% SHIN -59PEREZ 0.00% WEST -72SEWELL 0.00% HOYT -75WATTERS 0.00% NELSON -93

Cart Retrieval Program• The loss of carts forced management to rethink a strategic deployment plan

to ensure our assets were secure.• A 10-day record keeping program was put into place, in which Tracy and I

kept a daily log on inbound carts.• To expand on the program, I was able to create specialized driver memos

by examining sales teams and their territories. Drivers would not deliver carts to these stores as instructed by Fiona.

• As a result, of the 2800 carts in inventory, only 391 carts remain.Date Total Carts Recorded

07/09/09 1607/13/09 2207/14/09 507/15/09 2707/16/09 2707/17/09 1707/18/09 1707/20/09 2607/21/09 707/23/09 2307/27/09 2407/28/09 907/29/09 3707/30/09 3708/01/09 1808/03/09 4008/04/09 908/05/09 1008/06/09 1208/07/09 8

Total: 391

The Biggest Loser Competition

Forget those cookies, crackers, and anything associated with junk food, the Kraft Foods Ontario branch will be incorporating a 3-month long weight loss program that takes after the popular television show.

To promote health and safety, beginning Friday, September 4, 2009, drivers and employees have the opportunity to participate and begin the road to becoming healthier.

• Rules of the Competition– Weigh Ins must be in by Friday

September 4, 2009 to be considered in the program

– The person with the highest percentage of weight loss is declared the winner

– “Winner Takes All”

– Prize: $50 Gift Card

Strengths, Weakness, Opportunities, Threats

StrengthsA young, new management team in Jeff, Fiona, and Tracy; intelligent group of people with great ideas that can help make Ontario one of the top branches in the West area.

Strong, young warehouse crew and foreman; core group that understands what needs to get done to accomplish WUPH.

Experienced and seasoned drivers that know their routes and trucks.

Weaknesses

Opportunities Threats

Driver and warehouse call-offs, including overtime occurrences.

Wholesale migration affects employee morale – low volume results in labor getting cut and employees being bumped down.

Branch to branch transfers – a spike leads me to believe that inventory forecasting may not be observing the shortage or overages branches experience.

Carts & Pallets – an expense that can be reduced if the assets are secure and accounted for.

Carts & Pallets – a good opportunity to save on expenses that can become redundant; keeping in line with the pallet incentive and deploying carts strategically can completely reduce the cost.

Conveyor and pick line – the $120,000 investment in reconfiguring the lines can decrease work time by 6-8 hours, along with increasing productivity and improving on prep time.

San Diego business – the possibility of their business can help morale along with branch rankings; talks of expanding the yard can demonstrate the potential Ontario has in handling more volume.

Sustainability – finding ways to improve the idea of going green can help reduce costs of utilities, such as electricity.

Time loss incidents/accidents – proper training in safety and procedure can reduce the threat of large medical expenses.

Wholesale migration – finding a solution to increase our volume; can San Diego be the answer?

Carts & Pallets – can Ontario secure its assets by returning carts and pallets to reduce the cost in this bucket.

• My Goal – Was to learn the Kraft Food DSD network; how it works; what

needs to be done; how to successfully service our customers each day.

• Conclusion– A great 3-month learning experience in which I was able to

accomplish my goal entering the internship.

– A warehouse and driver community that are more than welcoming; helpful and wise.

– Management team that has potential to do great things with a up and coming branch in Ontario.

– Overall a great company to work for! The future is bright!

Concluding Thoughts

Thank You For the Opportunity!