Process Improvement - Texas A&M...

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Process Improvement Dick Wittman, Wittman Consulting www.wittmanconsulting.com

Transcript of Process Improvement - Texas A&M...

  • Process Improvement

    Dick Wittman, Wittman Consultingwww.wittmanconsulting.com

    http://www.wittmanconsulting.com/

  • Connecting Principles of Process Improvement to Farm Safety & Resilience

    Dick Wittman, Wittman Consultingwww.wittmanconsulting.com

    http://www.wittmanconsulting.com/

  • Activity Based Management Process Improvement + Activity Based Costing (ABC’s of Ag)

    Dick Wittman, Wittman Consultingwww.wittmanconsulting.com

    http://www.wittmanconsulting.com/

  • BiosketchAg Lender – FCS (1972-1980) – Spokane, WA & Washington, DCPartner in 20,000 acre diversified family farm business (1980-present) New title – Jan. 1, 2017 – Board Chairman/ Transition Coach

    Farm management consultant (1980-present) Farm family transitions and formalization of governance structures, financial

    planning, managerial accounting, process improvement, consultant trainingIndustry boards/affiliations Farm Financial Standards Council – Past President PNW Direct Seed Association – Director, Past President Director – numerous commodity group and bank boards Faculty member – TEPAP Program (fin mgmt. & process improvement);

    Texas A&M King Ranch Institute (MA)

    www.wittmanconsulting.com

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    http://www.wittmanconsulting.com/

  • ASK YOURSELF…

    Am I running a PROFESSIONALLY MANAGED FAMILY FARM BUSINESS…or a MOB?

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  • DEFINITION OF INSANITY

    DOING THE SAME THING OVER AND OVER AGAIN AND EXPECTING A DIFFERENT RESULT!

    Albert Einstein – March 23, 2017

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  • What do these have to do with Process Improvement?

    Job Descriptions

    Time & Motion Study

    Value Added Premiums

    SOPs, GAPs, BMPs

    Listeria, E Coli, BSE, Salmonella

    Process Mapping

    Soldiering

    Work accident/OSHA fine

    NoTill efficiency

    Six SigmaPERT/CPM

    IncentivizingWork Place Imprmts

    Fast food time clock

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  • IQ Test – What do following have to do with Process Improvement?

    Tractor rollover – flat tire (no fluid); spraying on steep ground; no seat belt; roll bar taken offSkidder kills operator – 500’ slope; no seat beltEmployee gets caught spraying ineligible chemical near creekCombine kills grandpa (SK 2010) – grandson kid hits button in cab; 2nd wife sells farm defying sons farm plansFuel spill – employee fueling implement with auto-shutoff nozzle leaves scene; nozzle fails; big MESS!Employee talking on cell phone while winging out self-propelled sprayer – hits power lines & fries tires!Employee talking on cell phone; tips logging truck over!

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  • Answer…When you have:

    No clearly defined company culture for: Documenting and following SOPs Auditing Process Improvement objectives Rewarding/incentivizing improvements

    Bad things happen!

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  • CLASS EXERCISE

    Identify situations where a process in your operation could benefit from a standardized operating procedure …

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  • Case Studies –#1 – Grain Hauling Efficiency

    Problem: 7 semis; under-loading trucks 40 bu./trip Analysis Opportunity cost = $.15/bu. x 40 bu/trip = $6.00/trip 6 loads/day x 45 days @ $6.00/trip x 7 trucks = $11,340/yr 5% cost reduction => 5% reduction in trucking needs Motivator: Port of Entry fines $100-500/overload

    Solution/Options: Grain wagon electronic scale - $3,250 + $1,500 install

    Payback in ½ season of harvest!!! Electronic scales – each truck (ok for commercial hauler)

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  • #2-Convert 40’ Trailer to Grain TrainsProblem: combines waiting on trucks; drivers hard to find; new trailers cost prohibitive. How improve efficiency & lower cost?Analysis Haul capacity: 40’ trailer = 850 bu; doubles = 1,150 bu Increased capacity = 300 bu @ $.15/bu x 6 trips/day =

    $270/day savings x 45 days = $12,150/ year 5 trucks haul what 7 did previously

    Solution/Options: Purchase used trailers $45-50,000 Sell old trailer $10,000; (optional: SELL two power units) 3 year net payback, excluding sale of excess power units

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  • How did we solve problem?

    Defined problemEngaged stakeholdersMapped activityAnalyzed cost of inefficiencyIdentified alternative solutionsImplemented optimal solutionEvaluated results of new process

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  • Agenda

    What is “process management”Motivation and rewards for excellenceConsequences when you are laxModels, Applications and Case Studies for putting concepts into practice

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  • Agenda - MRASHWhat is “process management” & how does it fit into your vision & culture as a “professionally managed business”What comes first: Creation of Robust SAFETY POLICY & SOP Creation of Professional Management Culture &

    100% Buy-in?Models, Applications and Case Studies for putting concepts into practice

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  • 100 Yr History of Process ImprovementResource providers doing it for years…never had a Harvard MBA term for it!

    Scientific Engineering – Frederick Taylor (1911) –summarizes 30 years of study in steel industry1st exposure to term – Cheaper by the Dozens Movie about time and motion studies - Frank Gilbreth

    Total Quality Management (1980’s) Six Sigma Business Process Re-engineering Business Process Re-design… and dozens of other buzzwordsBottom Line: deciding what to measure & manage

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  • Scientific Engineering – Frederick Taylor (1911) written after experimenting with concept in steel industry 1880-1910

    Four principles Develop “work science” to replace “rule-of-thumb” Manager’s job: select, train, develop standards Managers cooperate with workers to insuring

    consistency Responsibilities divided: management and workforce

    Principle Management Objective: prosperity for employee coupled with prosperity for employer

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  • Pig Iron Case Study

    Principles applied to steel millworkers handling pig iron.Assessed motions, capacity of workersDeveloped process, picked 1st class handlers

    Baseline – workers loaded 12 ½ tons of steel /dayResults– handled 47 T/day – productivity 400% Worker pay 60% ($1.15 $1.85/day) Cost of production dropped 56% ($.072 $.033/T)

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  • Frank Gilbreth – father of “Time & Motion Studies”

    Studied motions of bricklayers reduced movements from 18 to 5 repositioned materials, support systems for

    maximum efficiencyResults 350 bricks/hour vs. 120 industry average Bricklayers selected based on performance;

    given substantial pay increasesGilbreth’s techniques still used today

    to increase efficiency.

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    Trivia ? “Calculate savings (time/$) laying 800,000 bricks at college health science bldg (360 man-days)”

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  • Savings – Money & Time800,000 bricks @ 120/hr 6,667 hrs 6,667hrs @$15/hr = $100,000 4 person crew 6-10s6.5 months

    800,000 bricks @ 350/hr 2,286 hrs 2,286 hrs @$20/hr = $45,700 4 person crew 5-8s71 days/3.3 months

    Savings $54,300 (54.3% lower cost) 49% less time to complete project

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  • Lessons from Gilbreth/TaylorOne man alone can’t improve“soldiering” is big obstacleTakes management working with employees

    so both benefit: Owners: lower cost production Employees: increased pay; better work conditions

    (more time off, safer environment )

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  • Modern Applications of Process Improvement Successes

    Health care/pharmacy, fast foods, seeding systems, dairy, timber harvesting, crop production

  • Happy Days CorpMeet my friend Bruce Finch Fast Food Vendor par excellence!

    Lifetime commitment to Process ImprovementMultiple Taco Time outletsObserved time from order window to departure …not happy!Challenged staff to identify solutions…gave $ incentivesTime/Motion Project: engaged team to study Cinco de Mayo

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    Imagine clock like this in your shop, drill or sprayer!26

  • Strategy/ResultsTake homes

    Digital timers track time from order to handing food out windowTracked average & best times; employees continually worked to BEAT timesIncentives given for efficiencyRESULTS Doubled taco output over 2 years Dropped labor cost per taco 13%

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  • Health Care – Robotic Pharmacy

    Applications Used 1/3 hospital pharmacies Dispenses medications in

    cassettes, envelopesBenefits

    Filling accuracy 99.9% Checking labor 90% Missing meds 92% Inventory 10-20% Medication costs 54%

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  • Milking RobotsLandry Brothers Dairy, St Albert, Quebec Source: JD Furrow

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    “…robots don’t take holidays or call in sick, never get tired, lose focus or have a bad day…and they NEVER FORGET important things about each cow…like how many times a day a cow needs to be massaged!”

    Three shifts of workers replaced with 10 robots @ $200,000• lower mastitis• less management stress• more attractive to young workers• 10% increase in milk production• better insemination results

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  • Halversons2012 Top Producer of the Year Award

    11 state potato operation; major supplier - FritoLayGregg, Eric, John, Leah –two generations TEPAP Transitioning to next generationMajor commitment to GAPs, SOPs, environmental metrics (Triple Bottom Line)Use McDonald SOPs as model to improve brand

    story: JD8400T cost/hour

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  • Agricultural Gains from Process Improvement

    Conversion to NoTill/Direct SeedingHarvest operations–combine and trucksHay harvesting/haulingGrain transportation – trucks, unit trainsSelf-propelled sprayersTimber harvesting

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    Classic Process Improvement Case StudyTransition from Intensive Tillage to Direct Seeding/NoTill

    Benefits: improved economic viability and environmental sustainability:Sequesters CO2 .5T/acre/yrCan OM 0.1%/Yr.Improves air & water qualityImproves wildlife habitatLowers fossil fuel use ↓ 3.5gal/acre per USDA

    Increases economic viabilityCarbon emission offsets 20-25% ↓

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  • Operation Cost/AcreFall Plow $15.00Spring Harrow 4.00Spring Cultivate 6.00Cultivate/Spray Incorporate 6.002nd Incorporation-Cultivator 6.00Seed-Conventional Drill 15.00Harrow 4.00Roller/Packer 4.00

    Total Costs Per Acre $60.00

    Costs/Acre*- Conventional Seeding - Spring Peas*From activity based accounting analysis.

    Recreational farming at its best!!!

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  • Operation Cost/AcreFall Heavy Harrow $4.00Fall Roundup-Green Bridge 7.00Custom Hire-Direct Seed Drill 17.00Harrow 3.00Roller/Packer 3.00

    Total Costs Per Acre $35.50

    Qualitative Benefits: less water loss, less compaction, less erosion risk

    Costs/Acre - Direct Seeded Spring Peas…saves 3 steps & $25/acre

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  • 1998 2000

    ATR .50 1.05

    OPMR .1275 .1633

    ROA 6.47% 17.14%

    ROE 3.88% 22.61%

    A Tale of Two Tillage Systems

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  • Shephards Grain – Food AllianceValue added premiums for wheat grown in Direct Seed cropping systemFood Alliance certified Certification Costs S. T. Periodic Audits

    $1.00/bu premium1,200 ac wheat @80 bu/ac = $96,000 bonus!

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  • Timber Harvest Efficiency Trends

    Horse loggingDozers with winchesSkiddersFaller-bunchersStroker/delimbers

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    2-3 loads/day

    9 loads/day

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  • Process Improvement – Wittman FarmsBaseline - 1980

    6 partners, 2,500 ac farm, 2,500 pasture, BIG crew4 combines; 6 trucksFarming implements covered ground 6-8 times/year

    Today4 partners, 20,000 acres100% Direct SeededEfficiency compared to 1980 1 combine replaces 6 1 semi replaces 4-2T tks Sprayer=“10x” acres/day

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  • Definition – Process Improvement

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    Systematic approach to closing of process or system performance gaps through streamlining and cycle time reduction, and identification and elimination of causes of below specifications quality, process variation, and non-value-adding activities.

    source: google.com

    …doesn’t this sound exciting!!!

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  • Definition – Time & Motion Study(Encyclopedia Britannica): analysis of time spent in going

    through the different motions of a job or series of jobs. Time-and-motion studies were first instituted in offices and factories in the United States in the early 20th century. These studies were adopted on a wide scale as a means of improving the methods of work by subdividing the different operations of a job into measurable elements. Such analyses were to standardize work… check the efficiency of people and equipment… and the methodology to achieve results.

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  • Dick’s Definition:Process Improvement is…

    • Identifying jobs that are repetitive• Documenting how jobs are supposed to be

    performed (SOP, GAP, BMP)• Evaluating how to do it better:

    • More Efficient• Safer• More Economical, and • Environmentally sustainable

    • Auditing how you’re doing & rewarding gainsProcess Improvement-Wittman

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  • Where can Process Improvement be applied?

    … and how do we put principles into practice?

  • Where does this topic fit in Management System?

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  • Wittman’s Rule –

    Safety is not a Management Island…It’s part of a systems approach and culture of a professionally managed business.

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  • Organize/Divide Responsibility

    Communicate &Coordinate Efforts

    Measure Performance

    Plan

    ImplementPlan

    Establish Controls

    Adjust Plan

    Set Policies SOPs, BMPs

    Establish Mission, Vision, Core Values

    ManagementSystem

    MODEL

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  • SOP’s, GAPs*, BMPs*25% have SOPs in place!

    What are they? guidance documents and standards for repetitious or routine jobs

    How used? Training – new hires Leverage communication for multiple employees Assures jobs done following BMPs, GAPs Increases safety & lowers cost of production Basis for measuring job performance, auditing Accessing markets, value-added premiums

    GAP=Good Agric Practice; BMP=Best Mgmt PracticeProcess Improvement-Wittman

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  • Consequences of Undocumented SOPs

    Inconsistent workAccidentsInefficient processesFood safety hazards health risks, finesMarket demand destruction & loss of market accessExcessive turnover

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  • Food Quality “Hits”Alar Scare-applesE coli–leafy greens, ground beefSalmonella - peanutsListeria – Colorado & California cantaloupeBSE - beef

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  • Applications of SOPs/GAPsOffice functionsHarvest operations & servicingCrop agronomic practicesTimber harvest & manufacturing processesFuel and Supply StorageWorker safety guidelinesFood safety practicesHerd health & stock handling proceduresValue added market access

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  • Office Management FunctionsDatabase managementComputer access protocolsInternal controls/securityData BackupsNetwork and internetFinancial function SOPs

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  • Where would your business be tomorrow if:

    You were hit by busComputer technology expert left countryBookkeeper ran off with hired manComputer fried itself & the backup systemNO one else knows your system! How I learned the hard way…

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  • Building Office SOPs

    Define issues needing documentationWrite down in SOPFile in accessible locationUse for training/orientationUpdate existing/new items as needed

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  • Equipment Operations & Servicing

    Maintenance checklistsOperating instructions – key equipmentShop protocolsSeasonal work flow planningHarvest crew orientationOn farm grain storage protocols

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  • Equipment Operations/Harvest Examples

    Maintenance & Servicing Functions Harvest Orientation—protocols for driving, scales, bin dumping, field habitsChassis Checklists Book-MBR\Exhibits Files\7.3 Power Unit

    Chassis Checklist.doc

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  • ChassisChecklist

    Imagine truck fleet How avoid the

    “…dreaded phone call”…

    “Are you SURE you checked everything?”

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  • Service Truck –Stocking Checklist

    “Why are there two empty hydraulic oil jugs in here

    …and NO anti-freeze???”

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  • Truck Legal Weights

    '97 Peterbilt + Timpte Doubles Tare * See Steer Tire for steer axle load limLegal

    '97 Peterbilt - lead only TareLegal

    '97 Western + Western Doubles Tare "Cranberry Cruiser" Legal

    '97 Western - lead only TareLegal

    '99 Western + Wilson Doubles TareLegal

    '99 Western - lead only TareLegal

    '99 Western (purple) + pup Tare * See Steer Tire for steer axle load limLegal ** 43,500 with tag down or 34,000 wi

    '99 Western (purple) - truck only TareLegal

    '95 Western (blue) + pup TareLegal

    '95 Western (blue) - truck only TareLegal

    35,200104,000

    32,860105,000

    32,500

    36,300105,000

    31,480

    Wittman Farms FleetLegal Load Limits

    93,300

    92,000

    12,000*

    12,000*

    34,000 34,000 20,000 20,000

    43,500** 20,000 20,000

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    Sheet1

    Wittman Farms Fleet

    Legal Load Limits

    '97 Peterbilt + Timpte DoublesTare35,200* See Steer Tire for steer axle load limit

    Legal104,000

    '97 Peterbilt - lead onlyTare

    Legal

    '97 Western + Western DoublesTare32,860

    "Cranberry Cruiser"Legal105,000

    '97 Western - lead onlyTare

    Legal

    '99 Western + Wilson DoublesTare36,300

    Legal105,000

    '99 Western - lead onlyTare

    Legal

    '99 Western (purple) + pupTare31,480* See Steer Tire for steer axle load limit

    Legal92,000** 43,500 with tag down or 34,000 with tag up

    '99 Western (purple) - truck onlyTare

    Legal

    '95 Western (blue) + pupTare32,500

    Legal93,300

    '95 Western (blue) - truck onlyTare

    Legal

    '99 IH 8100Tare24,120

    Legal55,000

    '87 IH 1900Tare16,200

    Legal

    34,000

    34,000

    20,000

    20,000

    43,500**

    20,000

    20,000

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    Challenger 55General Information

    Make: Caterpillar

    Model: Challenger 55 When changing fuel filters:

    Serial #: 7DM01485- DO NOT remove all filters at once. Start with water sep, prime system and start. Repeat process with of the other fuel filters.

    Year:

    Date Purchased:

    Purchase Price:

    Hrs/Mls at Purchase:

    Current Hrs/Miles: 8047 hrs

    Maintenance

    Engine Oil Hydraulic Oil

    Engine Oil Type: 15W-40 Hyd Oil Type: Qwiklift HTB (green)

    Engine Oil Capacity: 9 gal Hyd Oil Capacity:

    Engine Oil Filter(s): Don-P554004 Hyd Oil Filter(s): Don-P179518

    Last Service: 8047 hrs (3/29/19) Last Service: 7689 hrs (2/10/17)

    Fuel Filter Transmission Oil

    Fuel Filter(s): Don-P551315 x2 or Trans Oil Type:

    CAT-IR-0751 x2 Trans Oil Capacity:

    Fuel/water sep: P551430 or CAT-117-4089 Trans Oil Filter(s): Don-P164378 x2 or

    Last Service: 8047 hrs (3/29/19) CAT-1G8878 x2

    Air Filter Last Service: 7689 hrs (2/10/17)

    Air Filter(s): Don-P532501 DEF Filter

    Cab Filter: 116-5796 NLNLUU

    DEF Filter(s):

    Last Service: 7851 hrs (12/12/17)

    Blew out both!

    Coolant Filter Last Service:

    Coolant Filter(s):

    Last Service:

    To Do Winter 2018/19

    COMPLETED

    - full service oil and all filters

    - check and replace air filters as needed

    - detail cab

    - inspect hyd ports

    - check transmission fluids

    - fix door latch/strut

    - check lights

    EquipmentService Log• Gen Information• Lubrication Specs• Maintenance History• “To Do” List

    Administration• Updated Annually• Employee logs

    changes • Shop Manager

    records

  • Fuel & Supply (chem/fert) StorageHandling proceduresSecuritySpill preventionIdentification/open container policiesFueling protocols

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  • Spill Prevention Containment & Countermeasure Plan

    Facility owner, operators & key contactsFacility Description Operations Storage – detailed maps of tanks,

    location, and storage capacity Drainage Pathway & Distance to

    navigable waterSpill HistoryPotential spill predictions, volumes, rates and controlsPrevention measures providedRecord keeping/meetings, inspections

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    $15,000 price tag… but required to source fuel!

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  • Semi-Truck Use Guidelines SOPSource: Barron Farms Inc1. Daily – inspect complete chassis (brakes, steering linkage, overall

    truck condition)2. Drivers may only use cell phones when trucks parked3. Drivers allowed to have passengers with written approval4. Inspect field entrances/exits before entry; mark edges clearly5. Maximum speed limit 7 mph driveways, yards6. Always park trucks on flat with brakes set; driver stays in truck

    while loading7. Drivers expected to obey all traffic & weight limit restrictions8. Drivers required to have minimum 10 hours rest before next shift9. All truck loading at bins requires one helper assist while loading10. At end of day, all trucks to be parked in designated parking areas

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  • ABCs of Farming

    Activity Based Costing

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    What is ABC?Activity based approach to tracking cost of production

    ExamplesCrop Operation: Pre-plant ground

    preparation Seeding/Fertilization Pest Control Harvest Mowing, Harrow

    Harvest Combining Trucking Grain Wagon Support Crew Services

    Hay Harvesting Swathing Raking Turning Baling Hauling & Stacking Tarping

    Silage Harvest Chopping Hauling Silage pit receiving Tarping

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    Uses of ABC InformationIdentifies costs of separate activitiesEnables comparisons Industry or competitor costs Custom rates

    Helps optimize In-source Out-source

    Sets basis for pricing hiring or providing custom services

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    Information Needed for AnalysisOwnership costs Cost of power unit/implement Planning Horizon/useful life Salvage value Cost of capital or borrowing Insurance & housing costs Tax rates

    WARNING: Use YOUR costs NOT economic costs from someone

    else’s data NOT replacement cost

    Annual usage of power unit – all operations

    Operating costs Fuel

    Consumption/hour Cost of fuel

    Labor cost Primary operators Support personnel

    Repairs and Maintenance Other Equip Support Overhead

    Costs (combine labor vs parts example)

    Productivity of Operation Working width Speed Field efficiency %

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  • $2.64/Acre

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  • 16,000ac $4.03/ac25,000ac $3.83/ac

    47%

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  • Let’s examine a baler purchase analysis…using Ag Manager

  • Modeling Example: Transition from Round Baler to Big Square Baler

    Map process – swath double rake bale load haul storage efficiency

    Analyze cost of each step – labor, fuel, equipment to bale & haulQuantify efficiency savings 42% ($18.8710.86/T) = $27,500/yr. @2,500T

    Invest in new system!

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  • $8.95/T owned vs.$18.00/t hired$9/t x 2500T =$22,500

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    Challenges to ABC

    Predicting obsolescence, econ deprecEstimating inflation in capital replacement costs & technology changeWhich pricing strategy is right? Cover actual costs + margin, or Cover replacement costs + marginCapturing indirect OH/support costs essential to specific equip operations

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    Conclusions

    Critical information for making incremental decisions - expansionIdentifies when it’s best to in-source vs. outsourceSets accurate base for pricing in custom work & trade relationshipsCan be reasonable alternative to cost center tracking & allocation approach

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    Resources

    Machinery Cost Calculator – Alb Agwww.agric.gov.ab.ca/app24/costcalculators/

    machineryAG Manager Information – Kansas Stwww.agmanager.info/decision-toolsMachinery Cost Calculator – Iowa State (William Edwards) www.extension.iastate.edu/agdm

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    http://www.agric.gov.ab.ca/app24/costcalculators/machineryhttp://www.agmanager.info/decision-toolshttp://www.extension.iastate.edu/agdm

  • Safety ProceduresExposures – too many to list PTO, conveyors, hoists Grain bin deaths “riders”–truck, combine, tractor Equipment rollovers – dozers,

    skidders, tractors Transport – cargo strapping Runaways-vehicles, implements Story: Partner’s wife & kids

    driving potato truckWhat is your “safety policy”?

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  • Think Proactively…what’s this?

    Lee Gilbert, ID St Insurance DivisionConducts safety audits, on-site training Supervisor Workshops on Accident Investigations Shop Audits – inspects for potential hazards

    For every $ in insurance claim, employer spends $4-5Incentives for thinking proactively; insurance premium modifications

    Best line: “…supervisor needs to communicate on near misses/close calls”

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  • Interesting stats…

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    1 Disability/death

    10 Minor injuries

    30 Property damages

    600 Near misses/close calls

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  • “Predictable Surprises…” – Mike Mullane, NASA Astronaut, author of Riding Rockets*

    Success = doing things well over & over consistentlyRecipe for success = managing “processes” Be aware of “normalization of deviance” Take responsibility for adherence to standards Be courageous leader in alerting to deviations Beware of “false feedback” – absence of something bad

    happening … (it didn’t cause wreck last time!) Listen to people closest to the scene or front line Archive, review and learn from “near misses” and disasters

    *chronicled 1986 Challenger Space Shuttle explosion

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  • Grain Bin SOPsSOPs for storing at proper moistureRules for entry & monitoring Harness, extraction

    equipment Buddy systems

    Rules for riding in grain transport implements

    Grain Entrapment Deaths• 2009 - 41• 2010 – 59• 2011 – 33• 2012 – 21• 2013 – 33• 2014 – 38• 2015 – 24• 2016 – 29• 2017 – 23

    Source: Purdue University

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  • SOPs for entry and working in manure storage facilities?

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  • What is your cell phone policy?

    Rules on texting, callingTechnology free zonesTime and place for useConsequences for violations

    What’s driving increases in auto insurance

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    Are you asking for predictable surprise?

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  • Social Media Policy & SOPsIs your company using Twitter, FacebookPolicy and SOPs should address: What to include on sites Who’s in charge of updating and/or

    answering inquiries When posts are “personal views” vs

    “business views”

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  • Implementation Strategies forSafety Process Improvement (SOPs)

    Identify hazards unique to farm situationDocument SOPs – Include rewards for “quality improvements” and Punishments for “violations”

    Define protocols for employee training, orientation (meeting dates, agenda, participation logs)Appoint safety officerConduct safety audits (i.e. State Workmen’s Comp)Define Zero Tolerance Policy – worksite rules

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  • Hazard Areas –Dairy DozenSept 2014 Successful Farming –OSHA Local Emphasis Program –New York Collaborative effort: Farm Bureau, NE Dairy Producers, NY Center- Ag Medicine & Health, Cornell University

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  • Job Site Safety SOPs –Think like Seattle, WA contractor

    Pocket size “little red book” with rulesNo access to jobsite until go thru training & sign-offOnce on site, hard hat with “sticker” requiredZero tolerance for violations of rulesLesson to farmers: is your farm a playground or work site?Challenge: how maintain our “culture” AND be safe?

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  • Resources – Safety SOPsiAuditor – build checklists, conduct inspections, file reports http://sfty.io/q4Af/LOcHr6VzQx

    Farm Safety Hazard Checklist http://fyi.uwex.edu/agsafety/employer-

    resources/farm-hazard-inspection-checklists/Great Plains Center for Ag Health 10 health centers focused on farm safety/health www.cdc.gov/niosh/oep/agctrhom.html

    Process Improvement-Wittman Consulting 2020 93

    http://sfty.io/q4Af/LOcHr6VzQxhttp://fyi.uwex.edu/agsafety/employer-resources/farm-hazard-inspection-checklists/http://www.cdc.gov/niosh/oep/agctrhom.html

  • 2 New Apps – WA State Department of Labor and Industry

    Good Observation, Near Miss and Accident Reporting Documents safety incidents in workplace Uses: training, hazard recognition, risk analysis,

    process improvementSafe Me (Retail industry focused) Tool for on-boarding new employees Uses: safety lessons, videos, hazard ID

    https://ohsonline.com/articles/2017/02/27/wisha-touts-new-safety-apps.asp

    Process Improvement-Wittman Consulting 2020 94

    https://ohsonline.com/articles/2017/02/27/wisha-touts-new-safety-apps.asp

  • Safety Models – Putting Principles into PracticeProgressive Ag Foundation (PAF)

    PAF supported by CHS FoundationRole model: Brian Kuhl, volunteerFather injured in fall on farm; recoveredOrganization hosts 400 safety days/yr for kids age 4-12What local resources can we tap in our local communities?

    Process Improvement-Wittman Consulting 2020 95

  • Break !!!!!

    Enjoy the slide show…

    Process Improvement-Wittman Consulting 2020 96

  • Deming’s Law*

    A system always gives you 100% of what the system was designed to do…94% of failures come from systems, not PEOPLE.

  • William Edward Deming

    Raised on Iowa farmDeveloped process improvement model adopted by Toyota in 1950s

    Plan Do Measure Adjust

    “If you can’t describe what you are doing as a process, you don’t know what you are doing.”

    Process Improvement-Wittman Consulting 2020 98

  • Example – Deming’s LawPick number between 1 & 9Multiply answer times 9Add the 2 digits in your answer & subtract 5Pick letter in alphabet that matches order (i.e. 5 = E)Identify single word country name whose 1stletter = last answerCaution: CANNOT use googleName a wild exotic animal that starts with last letter of country name?

    Process Improvement-Wittman Consulting 2020 99

  • Countries starting with D Denmark Djibouti Dominica Dominican Republic Dhekelia

    100

  • Agronomic Areas of ApplicationNutrient managementIntegrated pest management (IPM)Access to conservation revenue incentive programs (CSP, EQIP)Input documentation – seed, fertilizer, chemical, field operationsPrecision Farming–VR Application

    Process Improvement-Wittman Consulting 2020 101

  • VRA Case Study

    Problem: Excessive reliance on technical support 8 hours awayAnalysis/Problem: Studied process: combine maps creation of VRA .arm files Timeliness & quality of yield maps unacceptable Poor consistency-soil fertility analysis and yield projections

    Solution in-source process with external consulting support Mapped stages of process; paid consultant to train on process Developed 5 page SOP…VRA prescriptions now done in house Save thousands $ annually…better process!

    Process Improvement-Wittman Consulting 2020 102

  • Mapping & Documenting VRA Process

    Pre-harvest yield monitor calibration in-field validation download data to field record software create raw yield maps clean up yield data build variability zones

    Review zone maps with agronomy manager for nutrient level recommendations integrate soil tests with zone variance & assign rates by zone enter revised rates & create VRA application files (.arm) download .arm files to drill control computer go home and have a beer!

    Process Improvement-Wittman Consulting 2020 103

  • Food Safety, GAPs, BMPs

    Dual drivers pushing growers for implementation Defensive (food safety, water quality, etc.) Offensive (market access, premiums)Process for putting GAPs in placeResources available to minimize cost and avoid “re-inventing” wheel

    Process Improvement-Wittman Consulting 2020 104

  • Certification/Branding Programs – significant factor in market access & value added premiums

    ISO standards – CODEX International StandardsFood Alliance – PNW certifierPNW Direct Seed Assn – Farm Smart ProgramOregon Country Beef – natural beef marketsCarbon Crediting – standards to access carbon offset marketsUSDA Conserv. Security Prgm. (CSP)–conservation practicesSFI – branding of Forestry Practices to access marketsIMI Global – Source & Age verification – beefWalmart – Sustainability IndexWho certifies value added milk producers?

    Foundation for certification = SOPs, BMPs, GAPs, Protocols, Audits

    Process Improvement-Wittman Consulting 2020 105

  • Major Driver – Food Safety Modernization Act 2010 (FSMA)

    Key provisions: FDA authority for recall Shift from detention to

    prevention Standards for production &

    harvest Focus on traceability Compensation for growers

    injured by erroneous recall Registered facilities require

    HACCP plan

    Other Provisions Potatoes now covered (“th

    Exempt: Small operations

  • Terms we need to better understand

    HACCP – Hazard Analysis Critical Control Points http://en.wikipedia.org/wiki/HACCP

    ISO – CODEX World Health (see list of ISO categories)

    Process Improvement-Wittman Consulting 2020 107

    http://en.wikipedia.org/wiki/HACCP

  • International Standards

    ISO 14001 – Environmental impactsISO 9001 – Product QualityISO 22001 – Food SafetyISO 65 – Humane Animal treatmentOHS 18001 – Occupation Health & Safety

    Process Improvement-Wittman Consulting 2020 108

  • Questions to Address

    What processes require documentation? Depends on your commodity Check law and regulation applicable to you

    How map SOPs? Learn from peers who’ve DONE IT already

    Where can I get help…and NOT reinvent the wheel? (Hint: go to Google.com)

    Process Improvement-Wittman Consulting 2020 109

  • GAP Certification Case StudyLarge potato/vegetable grower in several states selling to a wide array of suppliers, some fresh market, some canning/processing, and the chip market

  • Why they chose to get certified?

    Suppliers asking for certification – not always the same or sure of what they were asking forDrive toward “sustainability” – companies asking for more information about suppliers to meet consumer demands/interests.Opportunity – by voluntarily going through the process, company hoped to create more differentiation

    Process Improvement-Wittman Consulting 2020 111

  • Process – Step 1Investigative: Researched consulting firms

    providing auditing and training. Learned:

    A. SOP’s = foundation for documenting practices.B. Many standards: GFSI, SQF, BRC, USDAC. Firm helping to get ready for audit should not be

    the auditor – independence necessaryD. Several consulting firms have proven processesE. Checklists on the web show what audits will be

    like – leads to self-prep

    Process Improvement-Wittman Consulting 2020 112

  • Decision…Cost-Benefit…ResultsDecision: Some SOPs/GAPs in place; didn’t hire “preparatory” firm

    Used WCS to evaluate SOP’s; provide webinar on conceptsEmployed USDA: willing to converse and review materials prior to on-site audit (in essence offering some free training).

    Cost: USDA $90 per hour, 1.5 days on-site: cost approximately $3,000 + $5,000 CEO + $8,000 outside consulting fees = $16,000 Total

    Benefit: No “hard requirement” for certification, but certificate showed suppliers company is proactive.

    Conclusions/Issues: Cantaloupe issues in 2011 and food safety problems even when audited will bring sharper focus/scrutiny to the audits in the future.

    Process Improvement-Wittman Consulting 2020 113

  • GAP Elements –Potato farm selling fresh potatoes to wholesale processor

    P lan 12 pages long Traceability proceduresWorker health/hygiene trainingClothing & jewelry policyHand-washing techniquesPolicy on taking breaksManureComposting Practices

    Harvesting tools, containersVehicles in production fieldsPlant & Storage warehouseLoading delivery trucksWashing lineStorage binsRodent & Pest Control

    Process Improvement-Wittman Consulting 2020

    Farm SOP: “All visitors must sign in & wash hands…all SOPs must be recorded & available to inspectors & buyers.”

    114

  • Nationally Recognized Organizations in Fruit and Vegetable Industry promoting GAPs

    Western Growers – CA based; fresh fruit, nuts and veggies http://www.wga.com

    United Fresh Produce Association – Southeast focus; Wash DC headquartersProduce Safety Alliance – Cornell Univ, FDA, USDACenter for Produce Safety – UC Davis www.cps.ucdavis.edu

    Process Improvement-Wittman Consulting 2020 115

    http://www.wga.com/http://www.cps.ucdavis.edu/

  • Process Improvement-Wittman Consulting 2020 116

  • Herd Health/Stock Handling

    Areas of applicationStock handlingAnimal identification/tracebackHerd Health (BQA – Beef Quality Assurance)Confined Animal Feeding Operations (CAFO)Waste Management

    Process Improvement-Wittman Consulting 2020 117

  • Herd Health SOPs

    What happens when SOPs don’t exist? Inconsistent procedures Duplicative or unnecessary costs Health problems, losses Jeopardize access to premium marketsSample – Beef Herd Health SOP.doc

    Process Improvement-Wittman Consulting 2020 118

  • Process Improvement-Wittman Consulting 2020 119

  • Processing MapCattle Treatments

    Keeps crew organized Permanent record of treatmentVerification for feedlot to avoid duplicate inputVerification to market outlet - consumer

    Process Improvement-Wittman Consulting 2020 120

  • CAFO Elements –Dairy Spreading Manure in Chesapeake Bay drainage

    Plan is 6” thick! Farmstead plan-map,

    water quality plan Field plan-solid mgmt,

    maps, attributes, soil mgmt plans

    Fertility mgmt-nutrients, leaching index, soil tests

    Manure/Waste utilization –annual prodn, analysis, application planning

    Must have “certified planner”Plan required before you can apply manure to “CAFO compliant field”Annual review mandatory to renew annual permitsPlans sets minimum standards on barnyard run-off, lagoons, silage leach

    Process Improvement-Wittman Consulting 2020

    “We are mandated to have GAP, SPCC, CAFO in place… CAFO most complicated regulation on farm.”

    121

  • Operating Plan- “What We Do”

    Strategic Plan“How we do it”

    Production

    MarketingFinancing

    Capital Plan

    Growth

    In-source?Out-source?

    Value-Added

    StrategicAlliances

    TillageSystem

    Diversification

    CropRotation

    BusinessStructure

    EnvironmentalStewardship

    WF Version-Mike Boehlje Strategic Thinking Model

    VisionLong RangeObjectives

    Short-term Goals

    Action PlansKRAs

    Evaluate

    Budget

    MissionQuality of Life

    TechnologyAdoption

    Why farmers are paid big bucks!

    Genetics

    122

  • Emtman Case Study – Insource or Outsource Herdsman Role?

    ProblemNeeded cattle to maximize resource useNo one in “genetic pool” good at cattleUnable to retain stable hired herdsmanPoor conception ratesPoor weaning %Distraction from core strength - farming

    SolutionOutsourced management to cousinsCompensated based on $/live calf weanedStill furnished herd base and paid all inputs

    ResultsSignificant weaning %Comparable costs to in-sourcing labor“farmers” much happier!

    Process Improvement-Wittman Consulting 2020 123

  • Stock HandlingQuiz: Name recent incidents that gave meat industry black eye?Answers: downer cows; chicken cages; …What is your “animal treatment” culture?Do you have an animal care policy & SOPs?Food Safety protocols “up to snuff”?

    Process Improvement-Wittman Consulting 2020 124

  • Animal Care –vs. “Agendas”

    Who won this one?Aired 20-20U-tube hits galoreAre “good guys” safe?

    Process Improvement-Wittman Consulting 2020 125

  • Do you have an animal care statement?

    Process Improvement-Wittman Consulting 2020

    “Never use a gun to herd cattle!” Temple Grandin

    Source: May 2006, Dairy Today, Meg Gaige – Aurora Ridge Dairy

    126

  • Beef Quality Assurance Assessment3 tier program–higher tier, more consumer friendlyOnline certification programs – state specificBe aware of “wannabe” programs Global Animal Partnership–5-step Animal Welfare Board weighted to animal rights extremists Major markets like Whole Foods rely on them!!

    “It’s a process of figuring out what could go wrong, planning to avoid it—then validating & documenting what you’ve done…just part of good business.” NE BQA veterinarian, Dee Griffin

    Process Improvement-Wittman Consulting 2020 127

  • Livestock ResourcesBeef Quality Assurance - http://www.bqa.org/ Beef, dairy training manuals and resources Transportation, animal care/handling, use of antibiotic use, etc.

    Dairy – National Dairy BQA Manual www.bqa.org/CMDocs/bqa/DairyBQAManual.pdf

    DairyWorks, Tom FuhrmanAgTexas FCS – Allan Watson, COO process improvement programs Client incentive program-1/3 of 1st year savings

    Animal Care - FARM Evaluation guide Temple Grandin – CSU – stock handling systems

    Process Improvement-Wittman Consulting 2020 128

    http://www.bqa.org/

  • Variance Analysis – Key Component of Process Improvement

    What is your policy re: following SOPs?What variances concern: Cattle foreman? Dairy feed manager? Sprayer operator? Timber harvester? French fry plant?

    Process Improvement-Wittman Consulting 2020 129

  • Analyzing Variances & ImpactsStatistical Process Control/Influence Diagrams

    Causes Normal deviations (“noise”) Out-of-bounds: procedural or system

    process weaknessImpacts Cost over-runs Crop damage Product quality damage

    Process Improvement-Wittman Consulting 2020 130

  • Variance Case Study - SprayerSituation: Goal is to spray @ specific target/acreProblem – chemical being over-applied based on acreageConsequences: 10% cost over-run; crop damage; envir. issuesAnalysis/Potential Causes of Problem Overlap Nozzle wear Flow meter calibration

    Quiz: (1) What is biggest factor leading to Precision Ag?(2) What Preventive Maintenance strategies could be

    implemented to avoid this problem?

    Process Improvement-Wittman Consulting 2020 131

  • Milk Cost of Production/cwt

    2007 2012 2016Income $19.24 $19.39 $16.00

    Feed $7.76 52% 10.53 58% 9.28 Labor 1.57 11% 1.70 9% ?Herd Replmt 1.36 9% 1.29 7% ?Other* 4.26 28% 4.71 26% ?

    Prod Cost $14.95 100% $18.23 100%Interest .80 .47

    UCOP $15.75 82% $18.70 96.4% $16.00Net Income $ 3.49 18% $ .69 3.6%

    Source: 2007 Clients-CA, AZ, ID, NM OK Client DataMoore Stephens Wurth Frazer & Tarbet, LLP

  • U. S. Top Dairies Peer Data

    Process Improvement-Wittman Consulting 2020

    2014 2015 2016

    Income/Cwt $23.79 $16.98 $14.89

    Tot Cost/Cwt $16.27 $15.17 $13.71

    Feed Cost/Cwt $ 9.22 $7.71 $8.37

    Feed as % Tot Cost 56.7% 50.8% 61.1%

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  • Impact of 5% over-run

    Assume – breakeven situation Total milk cost/cwt = $16.00 Feed is 58% of total cost $9.28/cwtImpact of process improvement 5% cut feed costs .05 x $9.28 = $.46 Operating Profit Margin (OPM)

    increases from 0% to 2.9%

    Process Improvement-Wittman Consulting 2020 134

  • EquipmentSupport

    General Farm

    Labor

    SupportCenters

    ProductionCost Centers

    ProfitCenters

    Sales, General & Administrative Exp

    Corn ProductionCost Center

    Silage ProductionCost Center

    Wheat ProductionCost Center

    Corn Profit Center

    Wheat Profit Center

    Milk Profit Center

    Corn Inventory

    Finance & Other Exp

    Inventory Value

    Wheat Inventory

    Silage Inventory

    Milk ProductionCost CenterSub-Centers

    • Feed•Herd Health

    •Manure Mgmt•Physical Plant Costs

    ReplacementHeifers

    Period Costs

    Corn Inventory

    Replmt Heifers

    Process Improvement-Wittman Consulting 2020 135

  • EquipmentSupport

    General Farm

    Labor

    SupportCenters

    ProductionCost Centers

    ProfitCenters

    Sales, General & Administrative Exp

    Feed

    Manure Mgmt

    Milk Profit Center

    Finance & Other Exp

    Inventory Value

    Milk ProductionCost Center

    Herd Health

    Period CostsFeed

    Process Improvement-Wittman Consulting 2020 136

  • Variance Analysis – Quality ControlTimber Applications

    Timber harvest SOPs Limbing, bucking, trim

    specifications Defect management

    Manufacturing and Processing Milling tolerances Quality Control audits

    Other applications ??

    Process Improvement-Wittman Consulting 2020 137

  • Combine 1 Combine 2 Combine 3 Combine 4 Combine 5S690 S690 S690 S690 S690

    SPG0785266 SCG0785076 SAG0785064 SKH0795458 SKG0785365 TotalAnnual Cost 64,984.44$ 75,525.78$ 75,525.78$ 96,996.60$ 59,964.96$ 372,997.56$ Repair Cost - Estimate 10,000.00$ 10,000.00$ 10,000.00$ 10,000.00$ 10,000.00$ 50,000.00$

    74,984.44$ 85,525.78$ 85,525.78$ 106,996.60$ 69,964.96$ 422,997.56$

    Acres - Estimate 4,500 4,500 4,500 4,500 4,500 22,500.00

    Opportunity CostWorking Hours - Total Cost 65,016.79$ 74,670.61$ 75,602.66$ 86,060.71$ 64,354.45$ 365,705.22$ Idle Hours Empty - Total Cost 13,457.74$ 14,008.39$ 11,997.28$ 19,643.15$ 10,578.63$ 69,685.18$ Cost of warming up, cooling down and repairs.Idle Hours Full - Total Cost 728.39$ 753.56$ 607.14$ 1,103.40$ 891.76$ 4,084.25$ Cost of delays on carts or grain transportation.Transport Hours - Total Cost 8,455.31$ 9,257.72$ 9,403.25$ 12,674.29$ 7,030.45$ 46,821.02$ Cost of transport due to field location.

    Acres Opportunity CostWorking Acres Completed 4,500 4,500 4,500 4,500 4,500 22,500 Idle Acres Empty - Lost 1,088 977 813 1,151 875 4,904 Acres lost sitting idle.Idle Acres Full - Lost 59 53 41 65 74 291 Acres lost waiting for grain logistics.Transport Acres Lost 627 595 588 702 527 3,038 Acres lost due to transport times. Total Acres Possible 6,273 6,124 5,942 6,417 5,976 30,733

    Harvest Smart Opportunity CostAcres Using Harvest Smart 2,560 3,219 3,028 2,661 3,169 14,638 Acres Not Using Harvest Smart 1,940 1,281 1,472 1,839 1,331 7,862 Harvest Smart % Improvement 20% 20% 20% 20% 20%Lost Acres from Harvest Smart 388 256 294 368 266 1,572 Acres lost due to not using JD Harvest SmartTotal Acres With Harvest Smart 4,888 4,756 4,794 4,868 4,766 24,072 Lost Opportunity Cost 7,556.40$ 4,868.61$ 5,596.02$ 8,743.02$ 4,139.19$ 30,903.24$ Cost of acres lost due to not using JD Harvest Smart

    Opportunity Cost Totals (Not Including Transport Required)Total Lost Costs 21,742.53$ 19,630.55$ 18,200.44$ 29,489.57$ 15,609.58$ 104,672.68$ Cost of combines not working and not using Harvest SmartTotal Lost Acres 1,535 1,286 1,149 1,583 1,215 6,767 Acres lost due to not working and not using Harvest SmartLost Acres from Carts/Harvest Smart 447 309 336 432 340 1,863 Acres lost from waiting full and not using Harvest Smart

    Hebert Grain Ventures - Combine Utilization CalculationsMaverick Ag Ltd

    October 2019

    138

    Tracking efficiency: warming up/idling, transport, grain cart delays, Harvest Smart useTotal Opportunity Costs = $104, 672; Lost acres = 6,767 (30% of Total)

  • Labour, Power and Machinery Optimization/Utilization

    Process Improvement-Wittman Consulting 2020 139

    Star Performer

  • What is your governance culture?

    Process Improvement-Wittman Consulting 2020

    “All organizations are hierarchical. At each level people serve under those above them. An organization is therefore a structured institution. I f it is not, it is a MOB. Mobs do not get things done, they destroy things.”

    Theodore Leavitt – Management for Business Growth

    140

  • Environmental Audits

    Mandated by many value added programs to get certifiedGreat way to “…clean us messes”“people do what is inspected…not expected!”Cost $2,500-5,000

    Process Improvement-Wittman Consulting 2020 141

  • Human Resource SOPsJob announcement, application, interview

    Job descriptions, training & orientationSafety GuidelinesPerformance ReviewsCompensation Policy and Payroll ProceduresEmployee benefits, vacation, sick leave

    Are these ALL addressed in Employee Handbook/ Management System & Governance Manual?

    Process Improvement-Wittman Consulting 2020

    20 Interview Questions

    142

  • Are Policies Written Down?…Common “Land Mines”

    Housing Company vehicles Room and boardExpense accountsSetting compensationWithdrawals of capitalInsider/inter-entity transactions

    Family Employment PolicyMedical benefitsRetirement plans/pensionsBusiness benefit continuationWorkdays and holidaysVacations, sick leaveBuyout understandingsOutside activities

    36% do!

    Process Improvement-Wittman Consulting 2020 143

  • Establish Mission, Vision, Core Values

    Organize/Divide Responsibility

    Communicate &Coordinate Efforts

    Measure Performance

    Plan

    ImplementPlan

    Establish Controls

    Adjust Plan

    ManagementSystem

    MODEL Set Policies & SOPs

    Process Improvement-Wittman Consulting 2020 144

  • What does your organizational structure look like?

    Process Improvement-Wittman Consulting 2020 145

  • Log Yard

    Manager

    Pres/Gen MgrFinance, Mktg

    Timber Procurement

    Manager

    Service Manager

    Mill Operations Manager

    Board of DirectorsPolicy, Management Direction, Owner ROE &

    Financial Control

    Asst MgrWildlife & Recreation

    Program

    Seasonal PoolTom, Dick, Suzie

    Harry, Sam & Glenda

    Advisory Board*

    *Advisory BoardInsurance Agent Milling Industry ExpertLoan Officer Marketing Advisor Forester AccountantAttorney Wildlife ExpertPeer Board- Other Timber Producers/Processors

    Comptoller -

    Office Staff

    Forest Growth

    Manager

    Timber IndustryOrg Chart Sample

    Process Improvement-Wittman Consulting 2020

    146

  • Specialty Enterprises

    Manager

    Pres/Gen MgrFinance, Mktg

    CropsProduction Manager

    Equipment SupportManager

    Cattle &HuntingManager

    Board of DirectorsPolicy, Management Direction, Owner ROE &

    Financial Control

    Asst MgrBldg Improvements and

    Rentals

    Seasonal Pool:Tom, Dick, Suzie

    Harry, Sam & Glenda

    Advisory Board*

    *Advisory BoardInsurance Agent Investment AdvisorLoan Officer Marketing AdvisorCrop Scout AccountantAttorney Cattle Breeding AdvisorForester Wildlife ExpertPeer Board- Clearwater Direct Seeders

    Does structure reflect authority & accountability flows?Board Management

    Responsibility Center Mgrs

    The M issing Pieces

    Office Staff

    Process Improvement-Wittman Consulting 2020

    Peer Group

    147

  • Responsibilities – Finance (CFO) and Marketing

    • Budget preparation and progress review• Maintain records and circulate to management team• Arrange loans for operating and capital purposes • Banking responsibilities• Capital investment analysis; negotiate purchases• Market grain commodities• Preparation of tax returns• Manage insurance programs• Liaison with attorney on legal matters• Supervise investments for pension plan

    Do job descriptions clearly define duties and responsibilit ies?

    Process Improvement-Wittman Consulting 2020 148

  • Sample Job Description –Precision Ag & Safety Manager

    Process Improvement-Wittman Consulting 2020

    Precision Ag & Agronomy Responsibilities – 7 duty areas

    Administrative/Field Staff Support – 4 duty areas

    Shop Operations & Safety Responsibilities• Primary backup to Service Manager in planning, coordination and direction of shop

    operations• Assist Equipment Support Manager and other shop personnel in maintaining

    equipment• Develop and maintain maintenance logs for service scheduling and safety compliance• Oversee farm safety program: establish SOPs, stock safety supplies, monitor compliance

    and ensure training and consistent implementation throughout workforce• Oversee environmental compliance and waste disposition • Monitor fuel and lube inventories, and coordinate restocking• Prepare quarterly fuel and road tax return• Audit and stock shop supply inventory to perform maintenance and repair activities• Oversee winterization of equipment and headquarters facilities

    149

  • Impact of Personality Styles on Attitudes Toward Safety

    DISC Styles D’s (Dominance) – run the bus; focus on results; impatient

    with safety SOPs I’s (Influence) – cheerleaders; team focused; like the

    idea…not the discipline of implementation S’s (Steadiness) - concerned for others; will support safety C’s (Conscientiousness) – like structure, accuracy and

    implement methodically

    Which personality style is best for a Safety Officer?

    Process Improvement-Wittman Consulting 2020 150

  • PROCESS IM PROVEM ENT-WITTM AN CONSULTING 2 0 2 0 151

  • Job Description – Chairman of Board

    Policy review and refinement Investment analysis Strategic planning Hiring, coaching, grooming successors Performance review and feedback “Assisting” and “advising” successors in day-

    to-day operations without telling them what to do

    Process Improvement-Wittman Consulting 2020 152

  • This process doesn’t have to insult our intelligence!

    Process Improvement-Wittman Consulting 2020 153

  • How avoid “creating concrete”?“Negatives” of SOPs Inflexible, tends to create robots Discourages exercise of judgment & common sense

    How do you balance micro-managing with efficiency and consistencyShould we focus on goal or tactics?Reward consistency vs. creativity…Encourage innovative thinking

    Process Improvement-Wittman Consulting 2020 154

  • What incentives are you using?“…avoiding concrete”

    Rewards for clean inspectionsShare in premiums gained over marketGift/bonus for attending safety meetingBonuses for days without accidentsRecognize more efficient or safe processesOther incentives?

    Process Improvement-Wittman Consulting 2020 155

  • Remember the “3rd stakeholder”…the Consumer (excerpts from Taylor’s Scientific Engineering)

    “…is it fair workers get 60% wage hike while employer gets 3.6x efficiency?

    “Consumers pay for the profits of both the employee and employer…they must share in the gain with increased quality and lower cost.

    “Greatest impact of P.I. has been introduction of machinery to replace people. Consumers have been greatest beneficiaries.”

    No better place than agriculture to make this point!!

    Process Improvement-Wittman Consulting 2020 156

  • Case Study Introduction

    FDA Warning Letter…Sparboe

    Process Improvement-Wittman Consulting 2020157

  • Final IQ Test Sparboe Case

    What happened?Where was breakdown in org chart?How could it have been prevented?What effect did it have on company?What was company response and how will this impact future SOPs … at Sparboe? … other competitors?

    Process Improvement-Wittman Consulting 2020 158

  • 5 Steps to Survive Undercover VideoJeanne Bernick – March 2014 Top Producer

    Prepare – assume someone taping youDevelop solid track records – animal careAccept responsibility – immediately; don’t blame othersIncrease transparency – welcome review by customers, experts, mediaDemonstrate and communicate ethical obligation to provide for animal well-being

    Other Resources: www.AgWeb.com/agriculture_challenge

    Process Improvement-Wittman Consulting 2020 159

  • Where to Start - Implementation StrategyForm in-house team with outside facilitatorReview legislation, regulatory requirements; attend training conferences – food safetyResearch peers who have implemented GAPs, SOPs, BMPs…define scope you need to codifyResearch audit/certifying organizationsConsider engaging auditor/certifier to do “test drive”Develop strategy for getting documentation in place Do your own, outsource

    Put SOPs where staff can FIND them!

    Process Improvement-Wittman Consulting 2020 160

  • SOPs: Stored in Dropbox

  • “Safety Is Not a Management Island…”Support based in Mission, Vision & Core Values

    Creation addressed in Operational & Strategic Planning

    Responsibility fixed in Organization chart & role definition

    Criteria for lead role Communication culture, personality type

    Commitment fixed in Board Policies

    Execution Platform SOPs

    Enforcement rests with Management control system, Performance Reviews, Compliance Audits

    Process Improvement-Wittman Consulting 2020 162

  • Process Improvement-Wittman Consulting 2020

    Time to wrap up…Have you taken inventory of your Process Improvement elements?

    163

  • Summary – “Good is the enemy of great!”Ag business LOTS of MOVING PARTS Must excel at process mapping and costingPromote culture of 100% buy-in for SOP implementation Will you be “proactive” or “reactive”? Assign “lead role” to accountable party – Process

    Improvement Coordinator Remember – Checking box not the same as living it! Audit for compliance, punish and reward strategically

    Process Improvement-Wittman Consulting 2020 165

  • Challenge – bringing it all together

    Array of manuals Office Manual Employee Handbook Management System Shop Manual CAFO, GAP CSP

    Need manual to describe your manuals!!

    Process Improvement-Wittman Consulting 2020 166

  • …don’t forget to applyProcess Improvement to all spokes!

    Process Improvement-Wittman Consulting 2020 167

  • Resources

    For free resource downloads, articles & Guidebook/DVD order forms, see: www.wittmanconsulting.com

    Guidebook aids clients in working through implementation process

    Video allows participants to “take story home”

    Process Improvement-Wittman Consulting 2020 168

  • Our Future Process Improvement-Wittman Consulting 2020169

  • Questions?

    Process ImprovementConnecting Principles of Process Improvement to Farm Safety & Resilience�Activity Based Management � Process Improvement + � Activity Based Costing (ABC’s of Ag)BiosketchAsk yourself…Definition of insanity��Doing the Same thing over and over again and expecting a different result!�Slide Number 8IQ Test – What do following have to do with Process Improvement?Answer…When you have:Class exercise Case Studies – �#1 – Grain Hauling Efficiency#2-Convert 40’ Trailer to Grain TrainsHow did we solve problem?AgendaAgenda - MRASH100 Yr History of Process Improvement �Resource providers doing it for years…never had a Harvard MBA term for it!Scientific Engineering – Frederick Taylor (1911) written after experimenting with concept in steel industry 1880-1910Pig Iron Case StudyFrank Gilbreth – father of “Time & Motion Studies” Savings – Money & TimeLessons from Gilbreth/Taylor�Modern Applications of Process Improvement SuccessesHappy Days Corp�Meet my friend Bruce Finch �Fast Food Vendor par excellence!Slide Number 26Strategy/Results�Take homesHealth Care – Robotic PharmacyMilking Robots�Landry Brothers Dairy, St Albert, Quebec Source: JD FurrowHalversons�2012 Top Producer of the Year AwardAgricultural Gains from Process Improvement Classic Process Improvement Case Study� �Transition from Intensive Tillage to Direct Seeding/NoTillSlide Number 33Slide Number 34Slide Number 35Slide Number 36Shephards Grain – Food AllianceTimber Harvest Efficiency TrendsSlide Number 39Process Improvement – Wittman FarmsDefinition – Process ImprovementDefinition – Time & Motion StudyDick’s Definition:�Process Improvement is…Where can Process Improvement be applied?Where does this topic fit in Management System?Slide Number 46Slide Number 47SOP’s, GAPs*, BMPs*�25% have SOPs in place!Consequences of Undocumented SOPsFood Quality “Hits”Applications of SOPs/GAPsOffice Management FunctionsWhere would your business be tomorrow if:Building Office SOPsEquipment Operations & ServicingEquipment Operations/Harvest ExamplesChassis�ChecklistService Truck – Stocking ChecklistTruck Legal WeightsSlide Number 60Fuel & Supply (chem/fert) StorageSpill Prevention Containment & Countermeasure PlanSemi-Truck Use Guidelines SOP�Source: Barron Farms IncABCs of FarmingWhat is ABC?� Activity based approach to tracking cost of productionUses of ABC InformationInformation Needed for AnalysisSlide Number 68Slide Number 69Slide Number 70Slide Number 71Slide Number 72Slide Number 73Slide Number 74Slide Number 75Let’s examine a baler purchase analysis…using Ag ManagerModeling Example: Transition from Round Baler to Big Square BalerSlide Number 78Challenges to ABCConclusionsResourcesSafety ProceduresThink Proactively� …what’s this? Interesting stats…“Predictable Surprises…” – Mike Mullane, NASA Astronaut, author of Riding Rockets*Grain Bin SOPsSlide Number 87What is your cell phone policy?Social Media Policy & SOPsImplementation Strategies for�Safety Process Improvement (SOPs)Hazard Areas –Dairy Dozen�Sept 2014 Successful Farming – OSHA Local Emphasis Program – New York� Collaborative effort: Farm Bureau, NE Dairy Producers, NY Center- Ag Medicine & Health, Cornell UniversityJob Site Safety SOPs – �Think like Seattle, WA contractorResources – Safety SOPs2 New Apps – WA State Department of Labor and IndustrySafety Models – Putting Principles into Practice�Progressive Ag Foundation (PAF)Break !!!!!Deming’s Law*William Edward DemingExample – Deming’s LawSlide Number 100Agronomic Areas of ApplicationVRA �Case Study Mapping & Documenting VRA ProcessFood Safety, GAPs, BMPsCertification/Branding Programs – significant factor in market access & value added premiumsMajor Driver – Food Safety Modernization Act 2010 (FSMA)Terms we need to better understandInternational StandardsQuestions to AddressGAP Certification Case StudyWhy they chose to get certified?Process – Step 1Decision…Cost-Benefit…ResultsGAP Elements –�Potato farm selling fresh potatoes to wholesale processorNationally Recognized Organizations in Fruit and Vegetable Industry promoting GAPsSlide Number 116Herd Health/Stock HandlingHerd Health SOPsSlide Number 119Processing Map�Cattle TreatmentsCAFO Elements –�Dairy Spreading Manure in Chesapeake Bay drainageSlide Number 122Emtman Case Study – Insource or Outsource Herdsman Role?Stock HandlingAnimal Care –�vs. “Agendas”Do you have an animal care statement?Beef Quality Assurance AssessmentLivestock ResourcesVariance Analysis – Key Component of Process ImprovementAnalyzing Variances & Impacts�Statistical Process Control/Influence DiagramsVariance Case Study - SprayerSlide Number 132U. S. Top Dairies Peer DataImpact of 5% over-runSlide Number 135Slide Number 136Variance Analysis – Quality Control�Timber ApplicationsSlide Number 138Slide Number 139What is your governance culture?Environmental AuditsHuman Resource SOPsAre Policies Written Down? �…Common “Land Mines”Slide Number 144Slide Number 145Slide Number 146Slide Number 147Slide Number 148Sample Job Description – �Precision Ag & Safety ManagerImpact of Personality Styles on Attitudes Toward SafetySlide Number 151Job Description – Chairman of BoardSlide Number 153How avoid “creating concrete”?What incentives are you using?�“…avoiding concrete”Remember the “3rd stakeholder”…the Consumer (excerpts from Taylor’s Scientific Engineering)Case Study Introduction�FDA Warning Letter…SparboeFinal IQ Test Sparboe Case5 Steps to Survive Undercover Video�Jeanne Bernick – March 2014 Top ProducerWhere to Start - Implementation StrategySlide Number 161“Safety Is Not a Management Island…”Slide Number 163Summary – “Good is the enemy of great!”Challenge – bringing it all together…don’t forget to apply�Process Improvement to all spokes!ResourcesSlide Number 169Questions?