Lean For Everyone

VOC - Burnt potato chips: A defect finally becomes a product of its own!

Better Made created "Rainbow Chips" in response to customers enjoying the flavor of burnt potato chips.

Back in the 1950's my parents lived across from the Better Made factory on Gratiot Ave. in Detroit, MI. 

Occasionally they would watch through the front window as the chips came down the conveyor belt and eye the workers removing the burnt chips off the line.

My father recalls them being put into bags marked "Rainbow" and being given away to the kids watching from the outside.

Who knew that these kids would grow up to be the Voice of the Customer and help launch a new item.

 

A burnt chip is considered a defect and was almost eliminated from the process.

Burnt chips were created by inconsistencies in the heating oil, and high sugar content in the potatoes.

By improving the processing of the chips and changing the sugar content of potatoes being grown, these defects became fewer and fewer.

Instead of just giving them away as a defect why not try to market it?

While most companies would just get rid of these defective chips Better Made saw an opportunity to change a process waste into a revenue generating item. 

Demand was greater than the defect rate so they created a process to mass produce them.

The demand for the product outstripped the supply so Better Made worked with farmers to create a spud that would continuously yield a dark potato chip with the right burnt flavor.

Ironically a lightly golden potato chip would probably now be considered a defect for this product.

I spoke to my dad about the chips earlier today.  He said it was like getting french fries from Burger King and accidentally finding an onion ring.  An unexpected but pleasant find.  Maybe BK should take a few pointers from the VOC.  There is even a Facebook page dedicated to french fries/onion rings at BK.

Lean on TV : Kitchen Nightmares - Gordon Ramsay from Hell's Kitchen a change agent?

If you're wondering what Lean can do to help transform an operation then you should tune into Fox's Kitchen Nightmares on Fridays 9/8c.

 

I was watching an episode on Hulu with my wife K. last week and it dawned on me that Chef Gordon Ramsay is a Lean change agent!  He completes his process of Lean Transformation in 7 days with a lot of change.

Step 1 - Go See What the Issues are

Chef Ramsay goes to the restaurant, tries the food and offers feedback:   He arrives at a restaurant and tastes the food and examines the basic layout and decor of the place.  He then gives his feedback about the food to the Chef.  He doesn't pull any punches and can be sometimes crass however he tells it like it is.  If it tastes like dog sh*t then he says..."this tastes like dog sh*t".

Watch the current state of flow of the dinner service: Gordon observes a typical evening at the restaurant.  He sees the communication between the chef, waitstaff and customers.  Looks for the bottlenecks, processing defects and does some simple metrics.

Listen to the customers to find out what they want:  Customers expect the basics- good food, served at the appropriate temperature and in a timely fashion.  This is what is of "Value" to them.   In most of the episodes the restaurants fall short on at least 1, if not all 3 of these value items.

Step 2 - The Change Process

Simplify the menu:  The menu goes from 20-40 options to 10-12 in some cases.  Dishes are made to order with fresh ingredients as opposed to frozen or pre-made dishes.  Portion sizes are dramatically decreased.  *NOTE Value does not equal large amounts of mediocre food!

Renovate and relaunch the restaurant:  Sometimes it's just a new coat of paint, other times they move walls and bring in new tables, chairs and place settings.  This helps solidify that change has taken place for the employees and the customers.

Fix the flow of the kitchen:  With any change there are a few hiccups but everyone needs to work through them.  This may include shifting duties or just changing minor processes.

Lean Transformation Complete: With a simplified menu of fresh ingredients and smaller portion sizes the kitchen can flow orders out the door to waiting patrons.  The food is delicious and the customers are happy.

I love this show:  It is entertainment TV and it makes Lean Transformation look simple but it's an excellent example of what Lean can do when applied.  It also shows how fast a turnaround can occur if Lean is embraced and the owners are willing to change.  Great Job Chef Ramsay!!

Lean For Food: Little Caesars listens to the VOC and gives us the Hot-N-Ready

 Little Caesar’s didn’t just get it right a little they got it right a lot when they listened to their customers.

 

In 1997 they piloted a $5.00 Pizza:   It was a one day sale where you could get a large pizza with pepperoni for only $5.00.  The response was huge.  Instead of just chalking it up to another great promotional product they listened to their customers.  VOC = Voice Of the Customer and it said “Build it for $5.00 and they will come.”

For the next several years Little Caesar’s continued to refine their costs, pare down their offerings, simplify their menu and rolled out the Hot-N-Ready everywhere.

Crains, April 26:

In 2004, Little Caesars reaffirmed its value-oriented place in the market by making the $5 Hot-N-Ready pizza a mainstay on its menu. In 2007 and 2008, Little Caesars was named the "best value in America" of all quick-service restaurant chains for its Hot-N-Ready pizza

Little Caesar’s knows exactly who their clients are and are focused on doing one thing and they do it really well!  This not only allows them to excel at their core business but also to ease the pressure on their operations.

Instead of 15 pizza toppings to choose from …there are only 2.  They do offer bread sticks and soda however after speaking to one of the managers the Hot-N-Ready accounts for nearly 95% of his sales.

For you Lean people out there let’s break this down.

Each operation has succeeded in JIT (Just In Time) processing by having a pull system that replenishes the cycle stock of ready to sell pizzas.  When 2 pizza’s are pulled for an order they shout : “2 IN”  to replenish the stock.  For seasonal demand variation AKA: Football games they will increase their cycle stock and in some instance carry safety stock.