“The Six Sigma approach takes ‘gut feel management’ out of the process. It puts in the required disciplines that take the focus off of people and onto the processes and specific situations. Insyte Consulting's hands on approach enabled us to effectively make this transition and lay the foundation for an expanded Six Sigma program at Tyson Foods." Ken Murray, Plant Manager
Ham mix is poured into molds prior to baking at Tyson Foods.
Benefits of Green Belt Projects
- Six Sigma Green Belt certification received by 8 individuals
- $300,000 anticipated impact in product yield and waste reduction in first year
- >$140,000 impact in slicing area
- $90,000 reduction in kitchen scrap
- $70,000 increase in ham yield
- Green Belts continue to find process improvement opportunities
- Plans to train additional Green and/or Black Belts
Tyson Foods, Inc. is a manufacturer of processed meats including hams, various smoked sausage products and numerous cold cuts, both bulk and sliced. The company's products are sold nationally, both direct and through food brokers, to restaurants/ delis and major retail chains like Kroger's and WalMart.
Manufacturing operations are conducted on two shifts at the Buffalo, NY plant, with sanitation functions addressed on the third shift. Although the 200,000 square-foot facility was built in 1952, its single floor layout meets modern manufacturing standards for efficient product flow. In addition, the company has continually upgraded both plant and equipment in order to maintain competitiveness. Tyson Foods currently employs 450 people, including about 300 hourly production personnel.
Situation
Over the years, Tyson Foods has consistently produced high quality products with minimal internal or external quality issues. Although there had been various shop floor controls in place, plant management recognized that, in most cases, the root causes of problems were not identified or understood. Elements of both lean manufacturing and Total Quality Management were introduced to address this issue. However, both methodologies met with mixed and limited results.
Solution
Management believed that Lean Six Sigma (LSS) methodology would enable the company to better determine root cause analysis and subsequently introduce the appropriate corrective actions. Since Six Sigma addresses process variation, it would be very compatible with lean manufacturing activities that are intended to address process waste. It was determined that eight individuals covering both production shifts would be trained and certified as Six Sigma Green Belts in order to facilitate the introduction of Six Sigma into the organization. Due to its hands on approach, Insyte Consulting was selected over several other vendors to provide the training for this initiative.
The Green Belt training was provided in weekly classroom sessions. One of the requirements of Green Belt certification is the successful completion of a project using Six Sigma principles. Tyson Foods identified four areas where they were experiencing cost or waste issues that would be addressed by the eight trainees in a partnering approach. The four areas selected were:
Slicing yield - Packaged cold cuts are sold based on weight, e.g. 12oz. packages. All packages must meet the minimum stated weight. However, typically the packages exceeded the minimum weight thus representing increased cost and lost revenue to the company. This project focused on eliminating the variance and increasing the yield for this issue referred to as "give-away". It was considered to be particularly significant since the company packages about 300,000 pounds in a typical week.
- Kitchen Scrap - This problem is defined as product that is thrown out due to changeovers and other activities. The group focused on reducing changeover time that increased yield, reduced scrap and improved overall machine effectiveness.
- Ham Throughput - Processed hams are produced through a process that includes both pumping and blending material through the equipment. It was believed that there were opportunities for increased efficiency, particularly through improved changeover techniques.
- Shape Defects - Tyson Foods has stringent standards for the shape and appearance of its processed hams. The ham musclel is placed in a bag and inserted into a mold and subsequently baked in this area. There was significant yield lost since the finished hams often had shape deformities that would not be acceptable for retail sale.
The teams actively evaluated the problems and developed solutions based on the Six Sigma principles and techniques presented in the formal training. Significant progress was made in resolving the above problems with the direction and guidance of the Insyte Consulting instructor.
Results
All eight individuals received their Green Belt certification. In addition, Tyson Foods realized significant improvement in product yield and waste reduction due to the successful completion of the projects. Conservatively, the anticipated impact from the first year alone is over $300,000. The slicing area in particular has experienced significant impact estimated at over $140,000. Kitchen scrap has been reduced by $90,000 and ham yield has increased by about $70,000. In addition, the Green Belts are continually attacking additional process improvement opportunities where Six Sigma principles can be applied. Tyson Foods' management has recognized the success of the project and is committed to further expanding it. There are plans to add more Green Belts and/ or Black Belts in order to realize further gains in the near future.
