Arla uses lean manufacture to give power to the people

Arla Foods is expecting increased efficiencies and capacity boosts from the adoption of 'lean manufacturing' principles at its national distribution...

Arla Foods is expecting increased efficiencies and capacity boosts from the adoption of 'lean manufacturing' principles at its national distribution centre and flagship dairy at Stourton in Leeds.

A pilot lean study at the two sites began at the start of 2009. Across the two sites, over 300 staff have been trained in lean principles, including 90 managers who have attended a two-day course, similar to those pioneered by motor manufacturer Toyota. The work is designed to foster a culture in which employees are encouraged to act on their own ideas, take decisions and challenge the norm.

"We are generating capacity and growth by engaging in a new way with our colleagues and opening them up to new possibilities," said Jens Termansen, Arla's director for supply chain development.

Since embracing lean principles, the sites are seeing improvements in health and safety; service levels are regularly hitting 99%; and a clear link has been seen with environmental improvements, with significant reductions in waste and polluting emissions. Lean manufacture targets waste generated across a number of areas, including that generated by: over production; defects; unnecessary motion and inventory; inappropriate processing, transportation and waiting; and lastly waste from the unrealised potential of people.

"The pilot at the Stourton campus is delivering some excellent learnings, allowing us to develop a robust, tried and tested lean model, which we intend to roll out across the UK business," said Termansen.

As part of the pilot study, Arla has traced product through the sites to identify opportunities to enhance product flow and minimise downtime. Lean's 5S approach (sort, store, shine, standardise and sustain) to workplace organisation has also been employed, as well as changes to reduce product changeover times.

Food Manufacture's conference, Profitable Production, on November 3 at the Heritage Motor Centre in Warwickshire will look at turning the theory of lean manufacture into practice.