TXM Lean Case Study - Ferguson Plarre Bakery

Summary

Ferguson Play, a modern industrial bakery, successfully implemented lean practices to enhance operational efficiency and product quality. Operations manager Mike Play shares the journey, beginning with the bakery’s outdated facility and the transition to a new site. Through 5S processes, ownership at all staff levels, and clear communication, the company reduced waste, improved production flow, and boosted employee engagement. The results included a 10% wage reduction, 7% savings on raw materials, and a more organized, efficient environment. Mike also discusses how the focus on people and behavioral change contributed to a culture of continuous improvement, proving that lean is applicable even outside automotive industries.

Takeaways

• 😀 Ferguson Play is a modern industrial bakery specializing in high-quality cakes and pastries, supplying over 50 retail outlets with fresh products daily.
• 😀 Mike Play, the operations manager, is the fifth generation of the Play family to lead the bakery business.
• 😀 Lean principles were introduced to Ferguson Play when they transitioned from an outdated bakery to a new facility, realizing the need for better processes and quality control.
• 😀 The company began implementing lean practices like 5S, which emphasizes cleanliness, organization, and ownership of workspace by individual employees.
• 😀 5S helped create a structured environment where employees own their spaces, ensuring cleanliness and reducing the need for inspections.
• 😀 Key improvements in the bakery's performance included reducing wasted time caused by unnecessary movement between departments and optimizing tool and ingredient availability.
• 😀 The bakery implemented standardized processes, set time limits, and focused on efficiency, resulting in employees having all necessary tools at their fingertips and improving workflow.
• 😀 The implementation of lean not only improved manufacturing efficiency but also facilitated better communication and team management across departments.
• 😀 Significant business benefits included a 10% reduction in wages, 7% reduction in raw material costs, and a significant decrease in raw material waste, thanks to better management and monitoring of waste.
• 😀 Lean principles enabled Mike Play to transition from focusing on manufacturing to overseeing the company's broader retail landscape, working 'on' the business rather than 'in' it.
• 😀 The core of Ferguson Play's lean transformation was behavioral change, with employees initially resistant to change but eventually embracing lean practices after seeing their benefits.

Q & A

What led Ferguson Play to begin implementing lean processes?

Ferguson Play began implementing lean processes after realizing that their old, outdated bakery could not control the quality of products or operational efficiency. The introduction to lean through TXM and the move to a new facility prompted them to take action.

What are the key elements of the 5S process that were implemented at Ferguson Play?

The 5S process at Ferguson Play focused on cleanliness, organization, and ownership. Staff were given ownership over their own spaces, with everything having a designated place and returning to that place after use. This led to a cleaner, more organized bakery and improved efficiency.

How did implementing lean impact the efficiency of Ferguson Play's bakery?

Implementing lean helped Ferguson Play significantly reduce wasted time. By optimizing processes, reducing unnecessary movement between departments, and ensuring tools and ingredients were always within reach, the bakery's efficiency greatly improved.

What role did meeting protocols play in Ferguson Play’s lean transformation?

Meeting protocols were a key component in Ferguson Play’s lean transformation. Regular meetings with set agendas focused on food safety, health and safety, problem-solving, and quality control. These meetings ensured that everyone was engaged and aligned on important business topics.

What were the financial benefits for Ferguson Play after implementing lean?

After implementing lean, Ferguson Play saw a 10% reduction in wages, a 7% reduction in raw material costs, and a reduction in raw material waste. The streamlined processes allowed for better management and more effective use of resources.

How did the implementation of lean affect Mike Play’s role in the business?

The implementation of lean allowed Mike Play to step away from daily manufacturing tasks and focus more on growing the business. Lean processes helped him replace himself in the production area, enabling him to focus on broader business strategies.

How did Ferguson Play address the behavioral change required for lean implementation?

Ferguson Play faced initial pushback from staff regarding the lean processes. However, over time, as employees understood the benefits and saw the improvements, they embraced the changes. The staff now fully control the process, ensuring adherence to lean practices.

How did Ferguson Play manage communication between different areas of the business?

Ferguson Play improved communication by standardizing meeting protocols and ensuring clear communication between teams. The lean structure made it easier for departments to collaborate and ensured that everyone was aligned on key goals, from production to retail.

How did lean processes improve the work environment at Ferguson Play?

The implementation of lean resulted in a much quieter, more organized, and efficient work environment. Even on busy days, the bakery became more peaceful and structured, reducing chaos and increasing overall efficiency.

What message does Ferguson Play’s success with lean processes send about its applicability beyond automotive industries?

Ferguson Play’s success with lean challenges the idea that lean processes are only applicable in automotive industries. By successfully implementing lean in the bakery sector, Ferguson Play demonstrated that lean thinking can be effectively applied in diverse industries to improve efficiency, reduce waste, and foster growth.