How Lean Six Sigma Works in Food Industry
Lean Six Sigma is a fact-based methodology for improving various processes based on data-driven principles emphasizing reducing variation, waste, and cycle time. In addition, it also promotes work standardization and flows to create a competitive advantage and always focuses on improving customer service. With the progression of the lean six Sigma concept for the food industry, now, it is being applied in many industries like six sigma green belt and six sigma yellow belt certified professionals are already working in this department very closely to bring up positive changes in this business. Because almost every industry goes through waste reduction problems, and all businesses want to do more productive work while staying within limited resources. So, to grow profits, reduce costs, and build effective teams with effective strategies lean six sigma is a must to do.
Here are some of the main sectors that implement lean six sigma.
- Automotive
- Transportation and Travel
- Logistics
- Chemical
- Biotechnology
- Advertising
- Education
- Healthcare
- Electronics
- Entertainment
- Telecommunications
- Retail
- Hospitality
- Food
In this blog, we will discuss the lean six sigma concept for the food industry.
Relationship Between Lean Six sigma and Food Industry
Lean Six Sigma and the foodservice industry are highly compatible. Food service professionals need to forecast and predict customer demand by the day, by the week, by the month, and even by the season. Perishable food must be ordered according to this forecasted demand to ensure that all orders can be fulfilled without waste. As far as hygiene and health considerations are concerned, attention to detail is of the utmost importance. The professionals need to ensure precise measurements and accuracy regarding recipes.
Professionals in the food industry must adhere to strict measurements, cooking times, and food temperatures. As these examples demonstrate, food service is all about processes and procedures that must be replicated without error or waste. The key to success for any company within the food services industry is implementing six sigma methods with 99.997% accuracy. By using the Six Sigma method, you will be able to improve the pathways within your food service company to increase the flow between the front-of-house and back-of-house professionals, streamline the processes which produce the food you offer, eliminate wasteful ingredients, improve the quality and freshness of your product, and increase customer satisfaction. All of these improvements increase profit, which is the goal of every food service company.
Any meal or snack prepared for immediate consumption outside the home falls under the Food Services industry. In addition to restaurants, caterers, food courts, cafeterias, and grab-and-go foods, many other establishments provide food for people. Historically, Six Sigma has been used within the manufacturing process to decrease variability. The Six Sigma process has gained popularity in other industries as well because of its data-driven success, especially in those with high-volume sales and tight profit margins, like food service.
There is a fine line between productivity and customer satisfaction regarding the food that customers will eat. Customers share good and bad experiences on social media if they are dissatisfied. The Six Sigma Process will make your food service stand out from the competition by increasing productivity and profits while decreasing inefficiency and waste.
Lean Six Sigma Concept for Your Food Business
You may wonder if Lean Six Sigma is a good fit for your food company. And if you do, you’re not alone. A lot of business owners have that same question. The truth is Lean Six Sigma can be adapted to any industry, but it comes with challenges in implementation, specifically in food space. For starters, the food sector is constantly changing, so you need a team that’s agile and able to adapt quickly. Another challenge is ensuring you have the right people in place. It would significantly help if the team members are passionate about process improvement and understanding the methodology inside out to get the most out of Lean Six Sigma. Finally, training and education are fundamental for a successful implementation. Your team needs to be familiar with Lean Six Sigma tools and techniques and be able to use them effectively to see results.
Benefits of Implementing Lean Six Sigma Concept for Food Industry
Here are some of the main benefits that lean six sigma can deliver to your business.
Increases Revenue
Lean six sigma can increase any company’s productivity by integrating its processes. Streamlined processes arise in products or services with the lean six sigma methodology. By delivering their services and products with the six sigma methodologies, companies can see long-term revenue growth and main advantages for the company and shareholders. Thus, this methodology allows organizations to sell, manufacture and deliver more products using fewer resources.
Reducing Waste
Once you streamline your business, then lean six Sigma is going to help in reducing waste too. With the right strategy for reducing waste, your production rate will boost. Ultimately, your business will be decreasing waste with minimal use of the inventory.
Increasing Customer Service
Another approach from Lean Six Sigma depends on the Voice of the Customer (VOC) to enhance customer satisfaction. VOC is a must to recognize your customers’ expectations and preferences for food and service. A well-run business delivers good customer service. And when you have the Lean Six Sigma concept for food Industry, you’ll be able to provide the best possible service to your customers, making them come back for more. Also, Lean Six Sigma focuses on making constant improvements through detailed analysis by monitoring and measuring your efforts carefully.
Strategic Planning
Any strategic vision can benefit from lean Six Sigma. As soon as you have created a mission statement and conducted a SWOT (strength, weaknesses , opportunities, threats) analysis, Six Sigma can help you identify areas for improvement.
For example, if your business strategy is to be a cost leader in the market, the Six Sigma concept for food industry can be used to improve internal processes, increase yields, eliminate unnecessary complexity, and achieve or maintain supplier agreements at the lowest cost. Whatever your company’s strategy may be, Six Sigma can help it to be the best.
Lean Six Sigma’ Success Stories
Here are some lean six sigma restaurant case study examples; after implementing six sigma method to their industry:
Brasil Canasul
Brazil Canasul, a Brazilian sugar-cane supplier, was asked to introduce a third shift to meet a client’s production needs. After a few months of operation, they noticed several issues, such as a low level of production, a high level of downtime, increased staff turnover, and customer complaints. The company decided to adopt Lean six sigma methodologies. After the implementation, the company could evaluate its processes, improve efficiency, and ultimately generate more revenue.
Pal’s Sudden Service
In 1956, Pal’s Sudden Service was founded in Tennessee as a drive-thru-only fast-food chain serving burgers and fries. With 26 locations, the chain had one focus: its customers. Founder Pal Barger and CEO Thom Crosby were said to be obsessed with using Lean techniques to eliminate waste, reduce human error, and simplify processes. During peak hours, cars and trucks pulled away from Pal’s, bag in hand, every 14 seconds. The success came from efficient design, simple menu offerings, and the nonexistence of electronics.
Red Fire Farms
In the last 27 years, Red Fire Farms owner Ryan Voiland tried everything to keep his 200-acre farm alive and sustainable. When cooperative growers put pressure on product prices, Voiland opted for lean farming to make his business sustainable and active. After implementing the lean six sigma methodology, finally, Violand was able to remove excess waste and improve turnaround time.
Starbucks
The implementation of lean Six Sigma ensures Starbucks’ success. It was basically introduced in early 2000. Starbucks experimented with introducing a new machine that used to roast espresso and steamed the milk replacing hand roasting. But eventually, it didn’t become a hit and was criticized badly due to the drop in sales.
Then, finally, they did great with the implementation of lean six sigma and today we can witness the results as well. In these years, Starbucks has climbed the ladder from a standalone shop in Seattle to becoming the world’s largest coffee chain.
Final Remarks
Lean Six Sigma helped various businesses and industries to stand out from the competition. Especially if we talk about the food industry, the proper use of lean Six Sigma is still helping many food businesses to develop and become sustainable. By using lean Six Sigma in your business, you can have great production while staying within limited resources; moreover, it will add value to your customer service. Many food brands like Kids’ food basket, Red fire farms Nestle and others opted for this strategy and did their business on the top. If your business is not going very well, you might also require lean Six Sigma.
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