Huka Pak Export Club Presentation for Lean

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					LEAN
INTRODUCTION
 Who is HUKA PAK
 What/Why LEAN MANUFACTURING
 BIGGEST BANG FOR OUR $
   Measurement
   Preventative Maintenance & Downtime
    Reduction
   Training
 The Results
HUKAPAK – What do we do
 KIWIFRUIT PACKHOUSE COOLSTORE
 5m trays of fruit – 22,000 pallets
 Main pack
     1 April till beginning of June
     All fruit picked and cooled
     3.5m trays packed
     1.5m shipped early in April
     1.5m TE stored CA/Bin stores
     Leaves 2.0m trays stored as packed inventory
     2007 we repacked 1.5m trays - $$$$$
HUKAPAK – What do we do
 2 shifts – 21 hours a day
 Staff turnover during mainpack –
  100%
 Staff turnover between seasons 90%
 Only 10% of staff with experience
 Multi cultural – problems with
  consistency etc
HukaPak – WHAT IS LEAN
 Toyota Way, 6 Sigma, TPM ,TOC etc etc
 FOCUS ON WHAT ADDS VALUE TO YOUR CUSTOMER
  – Eliminate any waste
   Forget or don’t worry about everything else

 Long term Philosophy
   Process Excellence
   Focus on Processing staff – People are Key
   Problem Solving

 Spend money on what matters
   Making the job more enjoyable (maybe easier?)
   Don’t spend money on anything else
HukaPak – WHY LEAN
 Need to change attitude of key staff – No
  more rip, shit or bust
 Put measurements in place that tell us if we
  are doing OK.
   Weekly
   Daily
   Hourly
 Reduce unnecessary costs – Repacking
  $1.5m
 Reduce down time. 10mins = $500 in
  wages + $500 in lost opportunities!!!
HukaPak – BIGGIST BANG
 Budget of $32,000
 Worked with LEAN consultants to
  prioritize
 Eliminate waste by finding out what
  really matters!
 Small improvements in 2 months!!
 NZT&E funded $10,000 so far.
HukaPak – MEASUREMENT
 How do we measure quality?
   Fruit loss and Repacking – difficult 3 months
    after the fact!
 How do we measure efficiency?
   Trays per hour – How about fruit quality in the
    bin?
   Downtime big issue – what really adds value?


 What's more important Quality or Efficiency
 Some staff did not know!
HukaPak – MEASUREMENT
 How do we measure quality?
 Traffic light system!




 Measure time we are on Green, Orange and
  Red. Put in systems to get us to Green!!
HukaPak – MEASUREMENT
 How do we measure
  efficiency?
   Not Trays per hour –                                      2008 GOLD OUTPUT


    Too many variables                           45.0



   Bins processed per                           40.0



    hour.                                        35.0




   Cannot compromise
                                                 30.0




                               BINS PER HR
    Quality. SO upper limit!
                                                 25.0                            CUM BINS/HR
                                                                                 TARGET
                                                 20.0                            DAILY BINS/HR


   Hourly output targets –                      15.0



    34 bins an hour Gold                         10.0



    fruit – GREEN light                           5.0




   Each operator has these                       0.0
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                                                                DATE
HukaPak – MEASUREMENT
How do we measure efficiency?
   Downtime big issue – what really adds
    value?
   Grader 1 return per tray - $6.00
   Grader 2 return per tray - $4.00
   Grader 3 (Class 2) return per tray – 40
    cents.
   Plus opportunity cost of G1 & G2 not
    running!!
   So second project!
Preventative Maintenance & Downtime
Reduction
Preventative Maintenance
   We have always had a Maintenance Plan
                        YES BUT
   Which equipment has the highest risk and cost
    to our efficiency – G1 Bin Dump!
                   SO REDUCE RISKS
                  And REDUCE IMPACT
   Staff to work with the Maintenance contractors
    both pre season and in-season
   Replacement parts on site or in contractors van
   Expert on site each day between shifts
   Contingency plan if all else fails
Preventative Maintenance & Downtime
Reduction

Preventative Maintenance
   SMART SPUD
   Compac’s accelerometer that we got
    going.
   Measures impact points.
   Grader 1 excellent except for part bins
    on Bin dump! – Terrible
   Grader 2 not so good and we can now
    work on where the issues are.
Preventative Maintenance & Downtime
Reduction

Downtime Reduction - Goals
   Reduce to below last seasons
   Prioritise projects – G1 Bin Tip!
          - Grower & Receipt Changes

   Don’t stop G1 & G2 if G3 has a problem!
HukaPak – TRAINING
  Pre-season training for Supervisors.
    How to Supervise.
  Better pre-season training for staff
    Do it right first time!
  Simplify Inductions
    Made video so inductions can be done at
     6.00am and 8.00pm
  Standardise on the job training
                                          Stacking dept Induction for new staff.


                                           Reinforce Daily!
                H&S                                   BRC                      House Rules
Closed shoes only                      Long hair out of sight.         Phone in early if sick!

No loose clothing                      Hats / hairnets.                Turn up on time!

                                       Jewellery: wedding bands and    NO physical or verbal abuse
Hands clear of machinery e.g. belts    sleepers only                   against others

Pick up fruit on floor                 Clean fingernails / no polish   NO phones/Ipods/hoods

Wear all PPE provided                  NO Food/chewing/drinks          NO take home fruit

No going in restricted areas           Always wash hands at breaks     Always ask questions!

Emergence evacuation                   Personal hygiene                Treat others with respect

NO riding on Jiffy's                   NO Aprons in toilet             Always clock in/out

NO Running in Pack-house               NO Aprons in canteen            Smoke only in smkoing areas

NO dropped pallets from jiffy's        Wear blue plasters on cuts      NO Alcohol or Drugs

                                       Wear snoods as appropriate      Back from breaks on time!

                                       Wear Viz vests as appropriate   Clean during downtime

               Key Induction Training Points                               What to look for!
Check size on E.A.N label MATCHES Drop Size.                           Ask questions to check
                                                                       understanding.

Check first stack configeration against standard.                      Look for body language

Always 'PLACE' boxes on stack.                                         Listen for the correct answer

Only lift a maximum of 4 trays or 2 MB's                               Give clear instructions


Place bungie cord 3/4 of the way up the pallet.                        Coach

Notify supervisor about wrong, lost, unused or ripped
labels.                                                                Monitor

Report any machinery faults to supervisor!
                                  DOING IT... RIGHT FIRST TIME!
                               KPI: UPTIME - SAFETY - "0" DEFECTS
                                       Packing dept Induction for new
                                                   staff.
                                    Reinforce Daily!
             H&S                              BRC                       House Rules
Closed shoes only                 Long hair out of sight.         Phone in early if sick!

No loose clothing                 Hats / hairnets.                Turn up on time!

Hands clear of machinery e.g.     Jewellery: wedding bands        NO physical or verbal abuse
belts                             and sleepers only               against others

Pick up fruit on floor            Clean fingernails / no polish   NO phones/Ipods/hoods

Wear all PPE provided             NO Food/chewing/drinks          NO take home fruit

No going in restricted areas      Always wash hands at breaks     Always ask questions!

Emergence evacuation              Personal hygiene                Treat others with respect

NO riding on Jiffy's              NO Aprons in toilet             Always clock in/out

NO Running in Pack-house          NO Aprons in canteen            Smoke only in smkoing areas

NO dropped pallets from jiffy's   Wear blue plasters on cuts      NO Alcohol or Drugs

                                  Wear snoods as appropriate      Back from breaks on time!

                                  Wear Viz vests as appropriate   Clean during downtime

            Key Induction Training Points                           What to look for!
Placing of fruit gently in boxes!                                 Ask questions to check
                                                                  understanding.

Check packaging, plix, plastic matches fruit size.                Look for body language

Wrap fruit ensuring plastic is fully enclosed, ends               Listen for the correct answer
tucked and folded under.
Place and level fruit gently in MB's and ML's.                    Give clear instructions

Make sure lid is fully secure!                                    Coach

Report any machinery faults to supervisor!                        Monitor

                           DOING IT... RIGHT FIRST TIME!
                         KPI: UPTIME - SAFETY - "0" DEFECTS
HukaPak – RESULTS
  Staff take pride in their workplace – 5S
   by default
HukaPak – RESULTS
  On the job training – initiated by Quality
   Staff
HukaPak – RESULTS
  Reduced Downtime – Right tools for the
   job.
HukaPak – RESULTS
  Reduced Downtime
    Bin Dump 1 – 50% reduction from 2007
    Bin Dump 2 – 75% reduction
    Grader 1 – 30% reduction
    Grader 2 – 75% reduction
    Grader 3 – 200% reduction – we did pre-season
     maintenance!
    Grower Changes – 300% reduction.
  Result – 14hrs downtime saved G1
  Result 16hrs downtime saved G2
  That’s 1318 bins processed extra.
HukaPak – RESULTS
                                                          GOLD RK PERFORMANCE 2008 VRS 2007

         600000




         500000




         400000


                                                                                                                                      2007 RK
 TRAYS




                                                                                                                                      2007 FL
         300000
                                                                                                                                      2008 RK
                                                                                                                                      2008 FL


         200000




         100000




             0
                  14   15   16   17   18   19   20   21    22   23   24   25   26   27   28   29   30   31   32   33   34   35   36
                                                                           ISO WEEKS
HukaPak – MORE TO DO
  Start planning for next season.
   Strategia to prioritize again
  Similar budget.
  Kanban! MORE VISUAL INDICATORS,
   More 5S!, Daily staff briefings.
  Improve maintenance more – still 2674
   bins equivalents of down time.

  Staff are the key. Must have and retain
   key staff!!

				
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