Kellogg’s TRACC journey to world class
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This document summarizes Kellogg's journey in implementing the TRACC operations best practices framework across its Latin American plants from 2009-2013. Key points: - In 2009, Kellogg's selected TRACC to drive its continuous improvement initiative K-Lean at its four Mexican plants. - By 2010, K-Lean was rolled out to all eight of Kellogg's Latin American plants. This resulted in a 5% increase in overall operating efficiency within a year. - In 2012, Kellogg's introduced the Administrative Excellence TRACC in Mexico and Colombia to complete the implementation across its entire supply chain. - By 2013, Kellogg's Latin America region became the first to implement
Kellogg’s TRACC journey to world class
- 1. TRACC TRACC J URNEY to world class!
- 2. www.traccsolution.com • info@traccsolution.com 2 CLIENT TRACC JOURNEY TRACC Evolution is key With the accelerating pace of global change, multinationals such as Kellogg’s constantly need to adapt their go-to-market strategies, as well as the logistics resources and capabilities necessary to support end-consumer demand.
- 3. www.traccsolution.com • info@traccsolution.com 3 CLIENT TRACC JOURNEY TRACC Understanding the challenges Before embarking on its World Class Manufacturing journey in 2009, Kellogg’s identified several challenges: World economic changes Supporting consumers and clients How the supply chain could be a facilitator and not an obstacle Developing people to manage the business in the future Creating future results today
- 4. www.traccsolution.com • info@traccsolution.com 4 CLIENT TRACC JOURNEY TRACC Powering K-Lean withTRACC After a meticulous selection process during 2008, Kellogg’s selected the TRACC Operations Best Practices to drive its K-Lean continuous improvement initiative at its four Mexican plants.TRACC
- 5. www.traccsolution.com • info@traccsolution.com 5 CLIENT TRACC JOURNEY TRACC Rolling out change Once successfully introduced during the course of 2009, K-Lean was extended to the four remaining Kellogg’s plants in Latin America, including: • Venezuela • Colombia • Ecuador • Brazil
- 6. www.traccsolution.com • info@traccsolution.com 6 CLIENT TRACC JOURNEY TRACC How to win • A strategic imperative for Kellogg’s was that once the manufacturing fundamentals were in place, the focus would shift to how to win and how to lead its category and industry • The aim was to create an end-to-end supply chain, while seeking to establish manufacturing excellence, customer service and logistics as competitive advantages
- 7. www.traccsolution.com • info@traccsolution.com 7 CLIENT TRACC JOURNEY TRACC The spotlight shifts to Planning A best practice assessment conducted in 2013 revealed that the PLANNING component was the single biggest cause of bottlenecks in the supply chain.
- 8. www.traccsolution.com • info@traccsolution.com 8 CLIENT TRACC JOURNEY TRACC Delivering to promise The challenge for Kellogg’s was to build capability to deliver the company’s products effectively across Latin America to suit different markets and different consumer needs through different channels. Critical to this was the application of Lean tools in the office environment, which turned out to be a powerful way of introducing a proven operations standard to people processes.
- 9. www.traccsolution.com • info@traccsolution.com 9 CLIENT TRACC JOURNEY TRACC Today, Kellogg’s is forging ahead with K-Lean transforming into the Kellogg Work System (KWS). continues to be part of this journey. The transformation continues TODAY TRACC
- 10. www.traccsolution.com • info@traccsolution.com 10 CLIENT TRACC JOURNEY TRACC 2009 • Kellogg’s selects the TRACC Operations Best Practices to drive its K-Lean continuous improvement initiative at its four Mexican plants • The Querétaro plant is identified to convert plant capacity improvements quickly into product sales and cash flow • A series of kaizen blitzes is introduced to reduce maintenance intervention time TRACC Milestones • The kaizen team at the Querétaro plant won a global kaizen award for successfully improving production volume targets, resulting in a 30% increase in sales • The plant also increased packaging throughput equivalent to 100 days of capacity • Today the plant is one of Kellogg’s top five plants worldwide in terms of production volume HIGHLIGHT
- 11. www.traccsolution.com • info@traccsolution.com 11 CLIENT TRACC JOURNEY TRACC 2010 • K-Lean is rolled out on the shop floor and implemented at all eight Latin American plants, four of which are in Mexico TRACC Milestones After this exercise, teams no longer saw themselves as separate departments with separate job functions, but as a multidisciplinary team who were working towards a common goal, and who were capable of better results when they worked together. They now understand how their roles interlink and are continually finding ways within the system to improve. — Alejandro Arenas, Operations Manager, Querétaro Plant “ ”
- 12. www.traccsolution.com • info@traccsolution.com 12 CLIENT TRACC JOURNEY TRACC TRACC Milestones 2011 • Just over a year after the pilot implementation at Querétaro, overall operating efficiency increases by 5%. This improvement helps pave the way for full implementation across all eight sites 2012• This year sees the reinforcement of the K-Lean Programme across all the plants, plus the introduction of the Administrative Excellence TRACC in Mexico and Colombia The integrative approach of TRACC proved crucial in the second leg of our improvement journey. Introducing the Administrative Excellence TRACC to the non-manufacturing side was made much easier as the Lean principles of identifying and eliminating waste were already entrenched on our manufacturing side. We believe that this TRACC completes the ‘Make’ piece of our end-to-end supply chain. — Victor Muñoz, Continuous Improvement Manager, Kellogg’s Latin America “ ”
- 13. www.traccsolution.com • info@traccsolution.com 13 CLIENT TRACC JOURNEY TRACC TRACC Milestones 2013 • The LatAm region becomes the first at Kellogg’s to implement four TRACCs from the TRACC Value Chain Improvement Solution: Value Chain Alignment, Demand Planning, Supply Planning, and Sales and Operations Planning • Unplanned orders and change requests reduced by 94.5% through adherence to planning discipline, value-added metrics and visibility of impact to scheduling • Customer demand is now increasingly being anticipated and met ‘on time in full’ HIGHLIGHT
- 14. CCIThe People Behind TRACC The TRACC framework helps organisations build standardised and integrated good practice and performance capacity across their Plan, Source, Make and Deliverfunctions.Simultaneouslyitacceleratestheircollaborationandalignment capacity to build world class end-to-end value chains enabling the organisation itself to become the ultimate source of sustainable competitive advantage. TRACC® ONESOLUTION TO ACHIEVE YOUR IMPROVEMENT STRATEGY www.traccsolution.com • info@traccsolution.com Visit http://traccsolution.com/resources/integrative-improvement/ to find out how an integrative improvement approach can help deliver superior results for your organisation. Copyright © 2014 CCI (Pty) Ltd All rights reserved TRACC, its logo, and Integrative Improvement System are trademarks of CCI.