https://www.youtube.com/watch?v=wz28yMcDvVM
What is the relevant application
to your farm business
management and System
practices?
Take 3 minutes to list and discuss at your table
What is the relevant application
to your farm business
management and System
practices?
You dont need to be a large operation to be capable of applying best business practices.
Its sometimes hard to see the opportunities in a system which you created.
You cant change everything at once, instead focus on Kaizen continuous improvement.
"Applying Lean Manufacturing
Processes to your Operational
Decisions, Farm Accounting and
Analysis Reporting."Kent Mogler
Brian Metzger
My objective: We all gain 3 ideas for
consideration in our operation
Table discussions
Presentation ideas
Informal collaboration / reflective thinking
Throughout the conference:
You will:
pick up at least 3-5 more ideas from other presenters
Pick up more ideas from informal discussions / break-outs
If you attended yesterdays workshop, you already have some to-dos
By end of the conference
10+ ideas for consideration
Feel like this was a successful and productive use of your time
Your challenge will be to prioritize and act upon the ideas and get others in
your operation to buy-in
Star the top 3 ideas which you will take action on or investigate further
You will have just implemented a best
practice.
Status quo practice
Attend conferences
Return to work and share
that it was a good
conference
Return to business as usual
Best practice
Attend conferences
Share learnings with others and highlight top take-away priorities
Establish a due date and task list for accomplishment
3 months later, debrief again with others your progress and review notes from conference
Select 2-3 more ideas to begin taking action on
https://www.youtube.com/watch?v=wz28yMcDvVM
3 Key concepts
Muda = waste
Create Continuous Flow
Kaizen Continuous Improvement
Outside Toyota, problems have a negative connotation. Inside, we see it
as something we can improve upon.
Why focus on WASTE?
Non-Value Added
Value Added 7-11%
Change of form, fit or function Non-Value Added - 90%Resources spent which the
customer doesnt pay for - WASTE
Womack & Jones,
Lean Thinking
Results achieved
Lead Time Reduction
0 25 50 75 100
Percentage of Benefits Achieved
Productivity Increase
WIP Reduction
Quality Improvement
Space Utilization
Energy Savings
Solid Waste
Water Waste
Womack & Jones,
Lean Thinking
Characteristics of Companies which
Practice Lean / Continuous Improvement
Continuous improvement is their culture,
not their program.
Always looking for single piece flow
- Not batch processing (start / stop)
They measure waste.
Key performance indicators KPIs
Results
Industry leading in performance
Always changing / evolving their business practices with purpose & clear goals
Low employee turnover
How can I apply this to a farm operation?
I think about
Insurance
Coverage
Pig Crush &
Hedging StrategyPlant corn or soybeans?
Futures Market
Debt service and
next years input
costs
VFD from the FDA
Payroll
Converting acreage to
organic practices
3rd party Audits
P&L Statements / Cash flow
Farrowing practices
observed / non-observed?
Employee challenges
Marker Price
Discovery
Lean Definition of Waste
spending resources (money/time) on something the
customer doesnt pay for
Defects
Over production
Waiting
Non-utilization of talent
Transportation
Inventory
Motion
Excess processing
KPIs primarily point to waste loss opportunities!!
Applying these principles into a farm
operation and how we utilize FBS
Pig Hill Operations Overview
www.pighillfarm.com
A Systems View
Practical Application
Operations Overview
Applying these principles into a farm
operation and how we utilize FBS
Operations Overview
Five Generations of Farming in NW Iowa
Four brothers joined farming operation between 1977 & 1992, each having their area of focus: crops / construction beef / grain facilityhogs farrow to finish hogs & record keeping
Youngest brothers service ended in Fall 2015 to blessings eternal. Transitioned accounting to a full-time staff in 2012 Brian Metzger. Welcome FBS let the journey begin!
4 full-time 5th generation Manager / Asst. Manager new farrowing site, Agronomy & Beef, Trucking --- employed in other ag. related jobs, college, high school, elementary and waiting for school.
Systems View
Systems View
Single Source of Data
FBS
Feedmill systems
Packer Data
Weekly Barn Service Form
Pig Champ
Timecards
Payroll
Precision Crop Systems
Cattle Feed Records
Accounting Entries
KPI benchmarks
System Admin
Future:
Med Treatment records
Audit / compliance data
Equip Maintenance Schedules
Asset Management
Other
Systems View
Single Source of Data
FBS
Financial Reports
P&L StatementsBalance Sheet
Cash FlowBank Reconciliation
Livestock Operational Performance
Marketing Summary
Group Close-OutMortality
Etc.
Crop Performance
Field History Reports
Crop History Reports
Landlord Summary
Daily Operations Tasks
Feed Delivery PlanMarketing Shipment Plan
Pig Movement PlanCrop Harvest Plan
A systems value is derived only when output
is provided that is timely, accurate, clear and insightful.
Systems View
Single Source of Data
FBS
Financial Reports
P&L StatementsBalance Sheet
Cash FlowBank Reconciliation
Livestock Operational Performance
Marketing Summary
Group Close-OutMortality
Etc.
Crop Performance
Field History Reports
Crop History Reports
Landlord Summary
Daily Operations Tasks
Feed Delivery PlanMarketing Shipment Plan
Pig Movement PlanCrop Harvest Plan
It is enhanced when its a single source of truth and cascades holistically.
What is your system view?
What role does FBS play in your operation?
Only accounting
Only Production Performance use a different system for accounting
Still not sure, just getting started
Only system you use in the office
Whats your frequency of publishing financial statements by enterprise (or in total)?
How timely (within 1-2 weeks, before next month, only when needed for a review
with accountant / lender)?
Our Output Vision is Simple:
Publish Financial Results by EnterpriseOn Day 1 Every month
Why?
Drives out waste no errors, re-work or waiting
Forces Flow data comes from user at time of action
Value is derived when output is timely, accurate, clear and insightful
Our Output Vision is Simple:
Secondary benefits
Publish group close-outs within 1 week of last shipment
Weekly Health & Mortality on Tuesday (goal Monday)
Market weights and Sort CV% within 2 days (the delay is the packer).
Working on leveraging FBS for marketing closer to packer target weights dont need scales on every feed bin.
Apply Lean Principles to FBS
Eliminate waste vigorously
Employee engagement
Create flow
Apply Lean Principles to FBS
Eliminate waste vigorously.
Time event to FBS recording minimize (within 24 hours)
Error rates find root cause and eliminate
# of data touches & stores anything beyond one is waste.
Spreadsheets are for proto-typing, not for on going use.
Extra data touches, extra data stores, high overhead
maintenance and single user focus.
Apply Lean Principles to FBS
Reports should engage employees.
Emotional response wont remember what you said, but I will remember how I felt.
Focus on decisions / answering questions, not data feedback.
In context measure against KPI, last year, plan
One page
Graphs
Example
Apply Lean Principles to FBS
Create Flow
Always changing and always current
Data updates occur more frequently
Feed mill updates weekly (daily?)
A/P and A/R small task everyday
Crop Harvest recording by load or by day or by week or by season
The test: I can create a report today and it will be complete, current and useful.
Example #2
Table Discussion Time
Two Report examples
1. P&L Statements / Monthly Reports
FBS Financial Statements
Published at end of Day 1, review meeting 2-3 days later
2. Group Close-out to operational focus
Two Report examples
P&L Statements / Monthly Reports
..\..\FBS Financial Statements.pdf
Published at end of Day 1, review meeting 2-3 days later
Group Close-out to operational focus
Two Report examples
1.
2. Group Close-out to operational focus
Group Close Out Report
Group Close Out with Financials
Marketing Opportunity
Target Weight & CV % by Load
Systems View
Single Source of Data
FBS
Financial Reports
P&L StatementsBalance Sheet
Cash FlowBank Reconciliation
Livestock Operational Performance
Marketing Summary
Group Close-OutMortality
Etc.
Crop Performance
Field History Reports
Crop History Reports
Landlord Summary
Daily Operations Tasks
Feed Delivery PlanMarketing Shipment Plan
Pig Movement PlanCrop Harvest Plan
A systems value is derived only when output
is provided that is timely, accurate, clear and insightful.
It is enhanced when its a single source of truth and cascades holistically.
Considerations or distractions?
Security
Infrastructure Support
Data Ownership
Big Data and its role in the operation
Internet of Farm Things
Apps and more Apps
Implement a best practice.
Status quo practice
Attend conferences
Return to work and share
that it was a good
conference
Return to business as usual
Best practice
Attend conferences
Share learnings with others and highlight top take-away priorities
Establish a due date and task list for accomplishment
3 months later, debrief again with others your progress and review notes from conference
Select 2-3 more ideas to begin taking action on
Respect this formula
D x V x F > R
D = Dissatisfaction with current state
V = Vision for the future
F = First Steps
R = Resistance to Change
DVF must be greater than R for change to occur.
Other Resources:
2 Second Lean How to Grow People and Build a Fun Lean Culture Paul Akers
Practical Youtube Videos about a company which engages their
employees in implementing change ideas everyday
Simon Sinek Why Leaders Eat Last (Ted Talks) and book
The biological science of why scorecards, recognition, and trust are key
elements of successful organizations.
I
On behalf of Pig Hill and Mogler Farms,
you are welcome to NW Iowa. We would
be honored to have you as our guests.
Our relationships and neighbors are more
important than reports or databases!