9

Examples of Lean

Lean has made noticeable improvements in agriculture and the food industry in recent years. The Lean thinking of reducing waste, creating structure and involving employees in continuous improvements fits perfectly with the many different jobs on a farm.

9.1 Results with Lean

9.1.1 The Production Strategy is Lean

Davidsen Landbrug A/S produces milk, and they have concentrated their production so that they focus on their core business – milk. They do not produce their young animals themselves, and they have outsourced their feed production. Kent Davidsen, who is one of the owners, says that it provides a structured day of work where it is possible to plan tasks and stay focused. They keep a very sharp eye on production costs, and with the specialized production, they avoid investing in something outside their core business.

When we ask Kent why they started working with Lean, he answers that to him it is a natural way to work. “Is there an alternative?” is his counter-question. He says that when he was alone on the farm, he could be everywhere. However, following the growth they have gone through, it is necessary to structure both work planning, performance management and continuous improvements. Lean thinking is perfect for this.

Kent further explains that they cut to the bone on costs and keep the focus tight. They continue along the path and are currently renting out all fieldwork. In return, they will invest in an extension for more cows.

9.1.1.1 There is Consistency in the Goals

For the company there are overall goals that are broken down into goals in four main areas and, in turn, broken down into day-to-days goals that can be acted on in daily operations. They currently have two farms, and there is a manager at each farm. The two managers conduct weekly board meetings with their employees where they are planning, performance managing and handling continuous improvements in production.

9.1.1.2 Quality in the Work Has Improved

Manager Anders Jokumsen says that the Lean tools have given both him and the employees a better overview of production. They advance on the production results due to the systematics of the weekly performance management and of creating improvements.

Because the employees have been involved, the quality of work has improved. They can see how it affects the result when they do the work well, and they understand the background better. They have also become better at making decisions in their daily work. It saves the manager much time.

9.1.1.3 Involvement Creates Commitment

At Davidsen Landbrug A/S, visible performance management is one of the much-used tools. The employees are involved in finding solutions, and they closely follow the results of their improvements.

Each time they reach one of their goals, it will be celebrated with cake. One of the employees even posted it on their Facebook page. It shows a true commitment.

9.1.2 Impressive Decrease in Costs at Esbjerg Dairy

Esbjerg Dairy has worked with Lean since 2007. Head of the dairy Jan Vrå Mikkelsen says that although there has always been work on optimizing the processes, there are some basic principles in Lean that have enhanced the dairy a lot.

When asked what the effect has been, Jan Vrå Mikkelsen mentions conversion costs as an example. It is the cost of wages, energy, machinery, administration and so on – all the costs of converting the raw milk into the finished products. Conversion costs decreased 10% to 15% in the first three years with Lean in spite of the fact that the general increase in wages, energy and so on in the same period was around 10%.

9.1.2.1 Board Meetings are Crucial

At Esbjerg Dairy, they used three to four of the Lean tools, but the board meetings were the foundation. They help motivate and maintain energy. “People have an influence on their everyday lives and their work. The board meetings are decision-making meetings, so if the employees want influence, they just have to show up”, says Jan Vrå Mikkelsen.

He continues: “It is a different way to lead. We used to go and talk to a senior employee who got things working. Now we make things work at the board meetings, and those who have good input make the others join.

We have nine Lean groups who each have a board meeting of 15 minutes once a week. The improvement suggestions are prioritized and written on lists. During the week, they are carried out. That way, suggestions quickly turn into action”.

9.1.2.2 5S Provides Satisfaction

“5S is undoubtedly the tool that most employees appreciate”, says Jan Vrå Mikkelsen. “Creating and keeping order and systematics – putting common sense into system. Anyone can relate to and see the idea in that.

We have asked the employees if they are satisfied. They say different things, but everyone agrees that 5S has been good. The truth is that order makes happy, even with the most untidy persons. It is also a democratic process in which employees influence how things look”.

9.1.2.3 Start with Analysis

Jan Vrå Mikkelsen says about the process, “We held workshops of two days for each production line, where we conducted value stream mapping. That is, we described the whole process and found out where it could go wrong. All sensors, lines, lanes and people – everything. Bottlenecks, waste, trouble. It may sound simple, but once you start working with it, you find out that there are actually more than 200 places where it can go wrong.

We grouped the 200 places into whether the problem was management, employees, planning, machinery, materials, etc. We prioritized them and suggested what to do better. The suggestions were written on sticky notes and discussed at board meetings. Since it is easier to get ideas than to implement them, some of the lines have made rules allowing only five ideas per week. All lines have made their own rules for the meetings and an operator – never a manager – is in charge of the meetings. That is important to us”.

The results from the 16 lines in the period just after Esbjerg Dairy initiated the Lean process are shown in the curve below. “Efficiency has been improved by 10%, which means we can do more with the same people and the same ­capacity”, says Jan Vrå Mikkelsen.

Board meeting at Esbjerg Dairy.

Result of the introduction of LEAN at Esbjerg Dairy

– Line efficiency increased by 10% the first year with Lean

9.1.3 Lean – Just Common Sense

Johan Thuresson is an energy engineer, who after some years in Stockholm changed to farming. Today he runs a successful farm with hybrid gilt production in Sweden.

To the question why Johan chose to introduce Lean, he replied, “I have an engineering background and have previously been in contact with Lean thinking. Therefore, it was not hard for me to understand that Lean can also provide positive effects in agriculture. The idea was, and still is, to invest in what adds value and to reduce waste”.

9.1.3.1 Specific Effects

Lean has had several specific effects at the farm. “We have obtained a good structure in the short term through our weekly meetings and a good structure in the longer term through better planning, follow-up on performance and goals”. Johan adds that he will also mention the importance of focusing on the value chain, standardization of routines, systematization and visualization, and it has become easier to handle deviations. “We have had a huge increase in production over the past year, and Lean has been an important piece in the puzzle”.

9.1.3.2 Lean is Based on the Commitment of Everyone

When asked which challenges they have encountered, Johan answers: “We have had some staff turnover, and it is always a challenge to welcome a new person in the team. Lean is based on the commitment and Lean mindset of everyone, leader as well as employee.

Lean has provided us with tips on good tools to introduce new staff in a good way, and it usually works well. Basically, Lean is based on common sense, even if it is packaged in another form”.

Management is important when it comes to Lean. Johan says management is something he constantly strives to develop, but it is also worthwhile, he says. It is often a big step to hand over control of certain points to your employees, but it is even better to see how the employees grow with their tasks.

Source: Johanna Andersson, Lean Landbruk, 2017.