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Improving Fleet Productivity Through Quality and Lean Initiatives

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Title: Improving Fleet Productivity Through Quality and Lean Initiatives


1
Improving Fleet ProductivityThrough Quality and
Lean Initiatives
  • Attention Attendees
  • Thank you for attending!
  • The presentation will start in a few minutes at
    100 PM Central.
  • Please use your computer speakers to listen to
    the event. If you have audio issues, dial-in info
    is below.
  • You will be muted during the event.
  • Please use the Question feature to text questions
    to Q A. Well try to answer them during the
    QA period if they are not covered in the
    presentation.
  • The slides and recording will be posted within 7
    days at http//www.jjkeller.com/nptcinfo
  • This webcast will cover ...
  • Overview on Lean,
  • How to Use Various Lean Tools,
  • How Lean Tools Have Been Used to Drive Out Waste
    at Frito-Lay, and
  • Question Answer
  • Moderator
  • Dr. Gary Petty, President CEO, National Private
    Truck Council
  • Panelists
  • Tom Moore, CTP, Senior Vice President, National
    Private Truck Council
  • Bob Rose, Editor Transportation Management, J.
    J. Keller Associates, Inc.
  • Mari Roberts, CTP, Director, Network
    Optimization, Frito-Lay, Inc.

2
  • Dr. Gary Petty
  • President CEO
  • National Private Truck Council

3
Introduction
  • Overview on Lean Tom Moore
  • How to Use Various Lean Tools Bob Rose
  • How Lean Tools Have Been Used to Drive Out Waste
    at Frito-Lay Mari Roberts
  • Housekeeping issues
  • You will be muted during the event.
  • Please use the Question feature to text questions
    to the QA Panelist. Well try to answer them
    during the QA period if they are not covered in
    the presentation.
  • If you lose sound at any point, you can dial-in
    by phone using the number and Pass Code listed
    below.
  • If you lose the program window and need to
    re-loginbe sure to enter a different e-mail
    address to avoid being denied access for
    multiple logins.

4
Introduction and Disclaimers
  • This is an introductory course and is intended
    to highlight quality and lean methods. Time
    constraints limit our ability to go in depth.
  • We invite you to ask questions. We will answer
    them throughout todays webcast.

5
  • Tom Moore, CTP
  • Senior Vice President
  • National Private Truck Council

6
Private Fleets Role in Supply Chain Optimization
7
Definition of Lean
  • Lean is a systematic approach to continuous
    improvement that eliminates waste.
  • Waste within a process is defined as any
    activity that adds no value to the end product
  • Key Principles
  • Customer focus
  • Value driven
  • Continuous improvement
  • Waiting
  • Over-processing
  • Motion
  • Inventory
  • Defects
  • Un-utilized talent
  • Transportation
  • Processing Waste

8
Plan, Do, Check, Act
9
Define, Measure, Analyze, Improve and Control
Define
Measure
Analyze
Control
Improve
10
Qualifying Opportunities
  • Consumes too many resources (quality, costs,
    timeliness, etc.)
  • Its improvement is important to leadership
  • Has clear owners and stakeholders
  • Can be clearly defined
  • Has performance metrics in place
  • Is worth the time/effort needed to improve it

11
Low Hanging Fruit for Waste Reduction
  • Communication
  • Dock wait time
  • Out-of-route miles
  • Backhauls
  • Drivers and MPG
  • Tractor and trailer utilization
  • Maintenance down time
  • Shipment staging
  • Organization and cleanliness

12
Benefits of Lean
  • Reduce lead times
  • Improved on-time shipments
  • Decreased Work in Process
  • Better customer responsiveness and flexibility
  • Employee empowerment
  • Better resource management
  • Ultimately, a better bottom line!

13
  • Mari Roberts, CTP
  • Director, Network Optimization
  • Frito-Lay, Inc.

14
Frito-Lay Fleet Operations
  • 28 Traffic Centers
  • Equipment
  • 1,040 Tractors
  • 3,800 Trailers
  • People
  • 115 Managers
  • 195 Admin
  • 1,550 Drivers (5.8 Turnover includes retirees)
  • Network
  • Hauls 86 of Frito-Lay Volume
  • Delivers 630,000,000 Cases/Year
  • PF Drives 130,000,000 Miles/Year
  • CC Miles 30,000,000/Year
  • Generates millions of Inbound Backhaul
    Revenue/Year

15
Frito-Lay Distribution Network
16
Frito-Lay Lean Staff
17
Frito-Lay Lean Six Sigma
Six Sigma Quality, Cost Explicit Approach
LeanSpeed Waste Implicit Approach
  • Goal Reduce waste and increase process speed
  • Focus Bias for action/ Utilize existing, proven
    Lean Tools
  • Method Kaizen events, Value Stream Mapping
  • Goal Improve performance on Critical Customer
    Requirements
  • Focus Use repeatable DMAIC approach for
    sustained results
  • Method Focus on projects, performance
    improvement a key leadership activity

Lean Speed Enables Six Sigma Quality (Faster
Cycles of Experimentation/Learning)
Six Sigma Quality Enables Lean Speed (Fewer
Defects Means Less Rework)
18
  • Bob Rose
  • Editor, Transportation Management
  • J. J. Keller Associates, Inc.

19
Lean Methods
  • Value Stream Mapping
  • 5 Whys
  • Process Walks (aka Gemba Walks)
  • 5S
  • Fishbone Diagrams
  • Smart Automation (aka Jidoka)

20
Value Stream Mapping
  • Value stream mapping is a lean technique used to
    analyze and design the flow of materials and
    information required to bring a product or
    service to a consumer.
  • Steps
  • Identify the target product.
  • Draw a current state value stream map, which
    shows the current steps, delays, and information
    flows required to deliver the target product.
  • Assess the current state value stream map in
    terms of creating flow by eliminating waste.
  • Draw a future state value stream map. Work toward
    the future state condition.

21
Frito-Lay ExampleHostler Efficiency
22
5 Whys
  • The 5 Whys is a question-asking technique used to
    explore the cause-and-effect relationships
    underlying a particular problem.
  • Problem The vehicle will not start
  • Why? - The battery is dead.
  • Why? - The alternator is not functioning.
  • Why? - The alternator belt has broken.
  • Why? - The alternator belt was well beyond its
    useful service life and not replaced.
  • Why? - The vehicle was not maintained according
    to the recommended service schedule.
  • Why? - Replacement parts are not available
    because of the extreme age of the vehicle.
  • Solution Start maintaining the vehicle according
    to the recommended service schedule.
  • Solution Purchase a different vehicle that is
    maintainable.

23
Process Walks(aka Gemba Walks)
  • A method of carefully observing a process to
  • find where waste exists
  • Process
  • Notify those being observed
  • Watch and try to understand the process
  • Envision what should happen in perfect world
  • Establish awareness of what is actually happening
  • Analyze possible root causes for deviation
  • Examples
  • Driver speed management, shifting and fuel
    efficiency
  • Driver vehicle inspections and maintenance flow

24
Frito-Lay ExampleTraffic Center of the Future"
  • Methods applied Process Walks, 5 Whys
  • Designed optimal work around internal and
    external customer requirements to develop
    Transportation Strategy

25
5S
  • The 5Ss are
  • Sort
  • Straighten
  • Sweep
  • Standardize
  • Sustain
  • Examples
  • Truck cargo securement supplies and material
    handling equipment
  • In-cab truck repair supply kits

26
Frito-Lay ExampleGarage/Parts Storage
  • Methods applied 5S
  • Incorporated 5S into our Maintenance Garages and
    Parts Storage areas
  • Enables Mechanics to work safely and more
    efficiently

27
Fishbone Diagram
  • Visual representation of the causes of a
    specific event where bone categories of
    process inputs represent possible causes
  • People
  • Methods
  • Machines
  • Materials
  • Measurements
  • Environment
  • Examples
  • Inventory loss/damage
  • Out-of-route miles

28
Frito-Lay ExampleFuel Efficiency
29
Smart Automation(aka Jidoka)
  • Automation with a human touch machine with
    elements of human decision making
  • Examples
  • Geo-fencing and remote shut down
  • Ignition controls for HOS and pre-trip
    inspections
  • Anti-roll over and collision avoidance on trucks
  • Dispatch and trip planning that checks hours
    available, weather, etc.
  • Automatic shut-off on tanker pump
  • Autonomous powered trucks in warehouse with
    radar/laser guidance

30
Frito-Lay ExampleFuel Efficiency
  • Methods applied Kaizen, Smart Automation
  • Kaizen identified waste
  • Tractor speed governed at 65 mph
  • Smart automation shuts down tractor after 5
    minutes of idling
  • Savings Reduced idling from gt20 to lt5
    100,000 savings

31
Frito-Lay ExampleDynamic Direct To
  • Methods applied Smart Automation, DMAIC
  • Cross functional team identified opportunities
    with process and systems to reduce supply chain
    cost
  • Savings 1 million

32
Question Answer
  • Please submit questions toQA using the QA
    tool

33
Closing Remarks
  • Checkout the archive of past topics at
    http//www.jjkeller.com/nptcinfo
  • PowerPoint slides and recording up in 1 week
  • Topics for 2012
  • October 3 Effective Motor Carrier Safety
    Training Programs
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