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.

VOC - How green does my lawn have to be if you're driving at 45 mph?

Over processing is a big waste and too often we lose sight of who the customer is and what they really need. 

I grew up on 14 Mile Rd in Warren, MI, (a 5 lane street with a 45 mph speed limit) and our lawn always looked nice when you drove past.

If you parked in the driveway you would notice that it was composed of 50% weeds and 50%....other weeds, but they were "green weeds" and that's all that mattered to my dad.

My father knew who his "customer was"

At church people would tell my mother what a beautiful front yard we had and how green it was.  She would say "it's full of weeds".  The response was always..."well you can't tell."

This was dad's customer, the people driving past the house at such high speeds the difference between green weeds and green grass was imperceptible.

Over processing happens when you don't know the VOC (Voice of the Customer)

My dad could have spent $1000's of dollars in yard upkeep, chemical treatments and landscaping to make the front yard beautiful...but few people would have ever noticed. 

Companies make this same mistake time and time again.  Work without the benefit of the VOC has just as much chance of being a "value added" benefit to the customer as it does being a wasteful expenditure of effort and cost to the company.

The VOC can change and your processing should change with it.

2 years before he put the house up for sale he started paying for lawn treatments.  His customer was going to be people now parked in the driveway looking at the house in detail.  A change in the VOC warranted the extra cost for a beautiful yard.

Even today I use this test when I'm getting ready to purchase an item or fix something in my own house.  I use it in training exercises for companies and when looking at helping other people improve their processes. 

Unfortunately for me I live in a subdivision on a 15 mph street so my grass has to look a little nicer than my dad's.

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.