Speaker: Farmers Can Benefit from LEAN Management
Published: Friday, May 18, 2018
Does it seem like the entire day is spent putting out fires on the farm? Perhaps it's time to consider a systemic change to the entire management system.
The acronym LEAN represents a system of farming that seeks to reduce waste in every aspect of the farm, changing the mindset and approach of all people operating within the structure.
Susanne Pejstrup, a founder of Lean Farming Inc. in Denmark, Europe, introduced concepts of LEAN to attendees during an in-depth session at Great Lakes Regional Dairy Conference in Michigan last winter. Pejstrup explained how farmers can introduce standards to create a systematic work structure in a goal-oriented culture that strives for continuous improvement.
LEAN has helped farmers in many sectors reduce waste, increase productivity and develop a culture of personal responsibility among employees. Wise implementation, which in-
cludes studying and learning the system for up to a year before implementation and taking on a new attitude towards managing people, are keys to a successful LEAN operated farm.
It begins with breaking the farm down into small parts; the shop, feed mixing, chemical and fertilizer, components of the livestock enterprise, etc. Each segment is then tackled with the Five S's of LEAN in mind: Sort, Set in order, Shine, Standardize and Sustain.
In LEAN, the model shifts and employee team members are coached by leadership to improve the organization—one segment
at a time—creating and reaching towards new goals through continuous improvement. Developing easy work routines, regular maintenance, clarity and organization will reduce time spent extinguishing fires and ultimately increase productivity. With higher productivity comes lower costs, less stress and more organized work.
"When workers are involved, respected and appreciated, they become empowered," Pejstrup said. "Look at the heads, not just the hands."
Each segment in the farm's supply chain has a customer. Determining who the customer is and mapping all the processes required to service that customer identifies waste within each system. In a top-down management system, the primary customer is the boss, owner or manager; following orders and performing one task after the next to please the person in charge.
But who is the primary customer in the shop, for example. Is it the equipment? Or Is it ultimately the fields, crops or livestock which the equipment ultimately serves? Consider a segment of a dairy farm such as calf rearing. Is the customer the owner or is it the milking herd to which she will eventually enter? Map the customer and identify waste in each value stream on the farm.
Eight types of identified waste in any value stream includes defective product, overproduction, waiting time, non-utilized talent, transport, inventory, motion and extra processing.
LEAN involves the employees, and if there is any one key to implementing the system to the farm's advantage, Allen Bonthuis believes daily meetings are the key. Bonthuis, of Coopersville, Mich., is a specialist in LEAN from both manufacturing and agricultural perspectives.
"It teaches time management," Bonthuis said. "We are here for 15 minutes every day, no excuses, no tardies, no passes." The time is used to share expectations, learn from each other, and educate. It sets the standard," he added.
Meetings begin on time and end exactly on schedule. Praise for teams and individuals is part of each meeting. Over time, everyone is expected to explain or demonstrate an idea or improvement.
The meeting and culture of the organization must be a safe place for people to share without fear of ridicule, a key component in gaining the participation and commitment of every team member. Respect and appreciation towards employees will eventually bring about their active participation in creating, sustaining and improving.
Swiss Lane Farm in Alto, Mich. always had the mindset of continuous improvement. Installation of Lely robots in 2011 helped the farm become more intentional in their improvement effort. Lely helped standardize procedures in the milking facility, and from that example, the practice grew.
"Cow comfort and overall well-being to get that quality milk has always been our main value," said Annie Link, partner and spokesperson for Swiss Lane Dairy. "One thing that was really big was managing cow flow and tracking people, so they were managing their time efficiently," she said. "Minimizing steps in the pen routines helped made things more efficient and we actually eliminated hours, the equivalent of a part time person, in that area. We defined our efficiencies and tried to make sure the cows weren't disrupted."
Moving from two maternity pens on separate farms to one centralized location has been another change that delivered measurable results.
"We have improved protocols, have better training and are able to track and monitor better. Other people are no longer distracted by working in maternity and focus on what they are supposed to do. Streamlining maternity was a huge benefit," Link added.
One manager on the farm came from a manufacturing background, already trained in LEAN. His experience has made a big impact on the farm, especially in the maternity ward, according to Link.
"He helped us develop specific protocols that are more intentional," Link said.
Unexpected results of consolidated maternity pens include better and more streamlined training and the management knows that protocols are being followed. Two people were moved from maternity to managing vaccinations for the entire herd.
"In all, we eliminated three jobs in that area."
"Our employees are incredible," Link said. "They are really good at making sure our cows are the No. 1 priority. They are really committed and that is what we need."
Some things are always a challenge and inventory control is one struggle Swiss Lane is trying to conquer.
"Another thing that is unsettling, is that you are never done, you are always moving on to the next thing," said Link. "You don't want to do this (LEAN) if you are not already doing the best you can."
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