LEAN

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LEAN
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INTRODUCTION

• Who is HUKA PAK
• What/Why LEAN MANUFACTURING
• BIGGEST BANG FOR OUR
• Measurement
• Preventative Maintenance Downtime Reduction
• Training
• The Results

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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 -

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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

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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 dont 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?)
• Dont spend money on anything else

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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!!!

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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!!
• NZTE funded 10,000 so far.

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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!

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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!!

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HukaPak MEASUREMENT

• How do we measure efficiency?
• Not Trays per hour Too many variables
• Bins processed per hour.
• Cannot compromise Quality. SO upper limit!
• Hourly output targets 34 bins an hour Gold
  fruit GREEN light
• Each operator has these displayed!!

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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!

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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

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Preventative Maintenance Downtime Reduction

• Preventative Maintenance
• SMART SPUD
• Compacs 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.

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Preventative Maintenance Downtime Reduction

• Downtime Reduction - Goals
• Reduce to below last seasons
• Prioritise projects G1 Bin Tip!
• - Grower Receipt Changes
• Dont stop G1 G2 if G3 has a problem!

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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

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HukaPak RESULTS

• Staff take pride in their workplace 5S by
  default

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HukaPak RESULTS

• On the job training initiated by Quality Staff

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HukaPak RESULTS

• Reduced Downtime Right tools for the job.

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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
• Thats 1318 bins processed extra.

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HukaPak RESULTS
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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!!