One processor took notes, made changes, and reduced costly inefficiencies.
GoldRiver Orchards, a nut shelling and packing company, discovered unexpected challenges in its pack room. Although initially considered a model of speed, cleanliness, and efficiency, this seemingly optimal space turned out to be the ideal area for measurable improvements. Company leaders suspected that applying lean process improvement principles could unlock hidden potential in the pack room, so they set a modest goal: Save $20,000 and increase the number of cases packed per person per hour.
Speaking lean
It’s important to define the start and stop of the target process and select representative team members to speak to their respective steps of the process.
The core team at GoldRiver Orchards, including owners, operations leaders, maintenance, office staff, forklift drivers, and an operator team lead, began their first interaction with lean principles. They needed to learn to identify waste categories and discuss them using a common language.
A brief introduction to lean principles, focusing on the TIMWOOD framework, was in order.
TIMWOOD represents seven types of process waste:
- Transportation: movement of materials or people
- Inventory: accumulation of materials, work-in-progress, or finished goods
- Motion: team members bodily movement
- Waiting: workers or machines waiting for materials or instructions
- Overproduction: producing more than is needed
- Overprocessing: completing unnecessary steps or tasks during a process
- Defects: creating other-than-intended outputs during any process
Applying TIMWOOD
With baseline knowledge in hand, applying this framework requires reflecting on the process in action. The GoldRiver Orchards team began by visiting the gemba, the location where work happens. Equipped with notepads and practical insight, the team assessed their production lines from multiple vantage points. During this initial phase, they silently observed and identified waste for at least 30 minutes. This first round of waste identification at gemba would set the stage for achieving their financial goal.
TIMWOOD waste observed included the following:
- Transportation: Forklift drivers had to make multiple round trips to provide hopper bins on different production lines.
- Inventory: Workers were non-productive as they gathered in the hand sanitation area or at the time clocks, specifically after break periods.
- Motion: Team members on the line would manually shake cases of nuts, after passing the shaking machine.
- Waiting: Packing line workers frequently had to wait for product to be delivered to their line to start work, or they waited when there were line stops due to downstream mechanical issues.
- Overproduction: Sometimes more product cases were produced than needed for specific orders.
- Overprocessing: At least four team members had to touch and manipulate materials to ensure the product was properly packed and the line kept moving.
- Defects: Sometimes the team experienced incorrect or smudged labels in the final stage before complete cases were palletized.
Prioritizing the waste
The project goal is the foundation for prioritization. The team was reminded to consider how the waste they observed was impacting the cases produced per person, per hour.
To prioritize their efforts, the team revisited their project goal, which was to increase the number of product cases packed per person per hour.
The core team shared their findings, highlighting how each type of waste contributed to inefficiencies in the pack room. To determine the primary areas for improvement, the team used a dot vote, allowing all members to vote on the specific waste categories that should be explored further.
Root cause analysis
With waste being prioritized, the team began the root cause analysis process. Root cause analysis involves identifying the underlying causes of a problem. Generally, a problem is articulated, and a series of “why” questions follow. Many of the problems branched off with multiple causes and, therefore, produced multiple root causes and solutions.
An example branch:
- Waste – Line workers are waiting when the line shuts down.
- Why? – Workers do not know if it will be a short or long shutdown.
- Why? – It takes time to understand why the shutdown occurred.
- Why? – There are no clear indicators for identifying the equipment causing the downtime.
- Why? – The line was built so that workers could continue working even during equipment stops that took a few minutes to resolve.
- Why? – Equipment stops for several minutes in a row were not expected to happen close together.
Solutions (countermeasures)
Following the identification of root causes, the team brainstormed countermeasures to solve the waste at its deepest level. Some countermeasure ideas came with substantial costs. The team estimated the benefits and efforts associated with each solution, using a matrix with two axes: benefits and efforts. The team ultimately selected the most beneficial countermeasures with the lowest associated costs.
Some of the countermeasures that the team implemented included:
- Waiting: The maintenance team and forklift drivers developed a system to monitor hopper bin levels, ensuring timely replenishment before they ran out on the production line.
- Waiting: The team leader and operations director reinforced and communicated expected activities for line workers to perform during downtime, such as cleaning, inspecting, and lubricating machinery.
- Waiting: The team investigated and addressed the root causes of downtime in downstream equipment.
More gemba, more savings
Once the team had implemented the chosen solutions, they returned to the gemba during production to validate the impact of their work and identify remaining areas of waste. This ongoing commitment to see and address the root causes of waste allowed them to further optimize the pack room’s performance.
The implementation of the countermeasures resulted in a significant improvement in the pack room. It’s now a more efficient space, and the packing process has been streamlined, due to a reduction of waste. The team not only improved the production of cases per person per hour, but they also surpassed their goal by double.
The team saved $40,000 in pack room operations that year.
The case study of the GoldRiver Orchards pack room project is a simple demonstration of the power of lean process improvement. The company was able to achieve significant improvements in its pack room by applying lean principles and tools.
This success serves as a testament to the universality of lean methods and tools. Lean manufacturing can be applied to any industry or process to improve efficiency, reduce waste, and increase profits.
Starting a lean transformation journey
Any operation can begin a lean transformation journey. Start by creating a cross-functional team with expertise in the target process, defining clear goals for waste reduction, and fostering a shared understanding of lean principles and tools, such as TIMWOOD, fishbone diagrams, and the 5 Whys. Observe the process at gemba and prioritize waste by its impact on the operation’s goal using methods like dot voting. Apply the 5 Whys to identify the root causes of each problem, then implement solution ideas that balance benefits and efforts. Finally, monitor and adapt these solutions for sustained results.
The success of a lean transformation journey will depend on team commitment, goal clarity, and effective use of lean tools. Some additional tips:
- Focus on one process at a time. Start small.
- Celebrate successes along the way.
- Be patient and persistent. Lean transformation is a continuous journey.
Lean methodology can be successfully implemented, allowing the business to harvest the benefits it has to offer.
Main image: The GoldRiver Orchards team dot voting on a fishbone diagram. Dot voting helps prioritize categories. Photo: Josh Lane
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