Quality_Food_Industry_2011

Quality Food Industry - 2010 1

NUMERAL ADVANCE

Consultancy in quality and performance

Proposition for a business service : « Quality for Business ».

Project for establishing a promotion programme on Food Quality for theEuropean market.


Summary

A « Quality for Business » Programme in food industry

Part 1 : Why to do it ?

Part 2 : How to do it ?

Part 3 : Examples and references

Part 4 : Quality management with Lean Six Sigma

Part 5 : Business service offer


PART 1

Why to do it ?


1.1) Why to do it : food quality for business improvement

Food quality has a wider scope than food safety. Foodsafety is part of food quality.

Food quality will drive to:-Higher prices,-Better margins,-Better revenues.

Food Quality

Food Safety


1.2) Food Quality Criteria

Food quality is built on food quality criteria such as:

-Nutritive value,-Ease of use,-Taste and pleasure,-Energetic and feeding value,-Customer’s information,-Protection environment-Others…


1.3) Examples of French consumer’s food criteria

Nutrition information :Ingredients or dishes must be delivered with some indications on their nutritive value.

Oriental taste:Exotic and faraway regions bring some flavor and taste thatattract the french consumer.

Field and agriculture good practices:French consumer will prefer products from regions with goodagriculture practices (size of field, storm protection for cattle, open barns, hences of trees, animal type splitting…).


1.4) Your company will be an food brand

By focusing the communication on a brand linkedwith quality criteria, your company can develop itsfame and reputation of good food and agriculture for the french and European market.

Take examples of food brands like :

•« Bordeaux » brand for wine,•« Mont Saint Michel » brand for natural salt lamb,•« Poulet de Bresse » for poultry traditional farm,•Others…

The brand on quality criteria is thebest way to be know from the French and European market


1.5) From brand to quality criteria and commitments

Brand

Quality criteria of the Brand (examples) :

•Good practices in the field,•Hand pick-up for preserving the natural production environment,•Conditioning in the field with small packages,•Soft cooking process to preserve vitamins.

Quality commitments of the Brand (examples) :

•Training for good practices in the field,•Workforce welfare,•Logistic for small packages,•Cooking control process.


1.6) Food quality for business commitment

Food quality is a service that creates value.

With a brand, food quality has an efficient communication channel.

Value creation from food quality will drive to higher price and better margin.

This is the business commitment of your quality policy : to deliver better services to your customer and to gain betterrevenues and margins


PART 2

How to do it ?


2) How to do it : four steps

1.Identify the selling price for quality

2.Evaluate your business potential

3.Deploy your quality commitments

4.Build and manage your brand with qualitycommitments


2.1) Identification of the selling price for quality (1)

Benchmark Price x Quality on food product (example) :

PriceProduct quality

2,5Organic apple

1,2Landscape apple

1Dessert apple (standard quality)

0,80Apple (compote)

The difference between the price for quality and the standard priceis what the customer is ready to pay for quality.


2.2) Identification of the selling price for quality (2)

Benchmark Price x Quality on food product (example) :

PriceEnvironmentPackaging quality

Product quality

NoYes

NoYes

2,983,64

Organic apple

1,902,25

Land apple

11,15

Dessert apple(standard quality)

0,800,92

Apple (compote)

Price of quality is a complexe combination between the qualities ofthe product, of the packaging and of the environment


2.3) Evaluate your business potential

From the benchmark information, selecte your qualitycriteria.

Evaluate the cost of your quality criteria and theinvestment for its improvement.Evaluate at this stage the opportunity of getting a label or a certificate.

Fix your selling price to be competitive and to coveryour costs and margin.

This is the business potential of your quality criteria


2.4) Deploy your quality commitments

To commit on your quality criteria over time, you have to deploy Good Practices (GP), measures and checkingpoints. The best methodology is Lean Six Sigma.

This is the business commitments to your customers

Field, orchard

Harvesting

Delivery Retail

Manufacturing

Warehouse

Quality criteria monitoring


2.5) Build and manage your brand

The brand is the communication channel for your qualitycommitments :

This is the proof of your business commitments to your customers

Field, orchard

Harvesting

Delivery Retail

Manufacturing

Warehouse

Quality criteria monitoring

Brand

Brand

Brand


PART 3

Examples and references


3.1) Type of quality in fish breeding

PricesDescriptionType ofquality

6Organic fish

4Fresh fish

1Frozen fish


3.2) Quality criteria in fresh fish breeding

Criteria 1 : Natural freshwater

Criteria 2 : Rightdensity ofpopulation

Criteria 4 : Preparation in 4h

Criteria 5 : Deliveryin 12h with cold chain

Criteria 6 : Vitaminsand tasty for thecustomer

Criteria 3 : Manual handlingfor better care

Quality criteria monitoring with Lean Six Sigma method


3.3) Quality criteria in mussel breeding

Criteria 1 : Naturalsea environment

Criteria 4 : Ready to cook for customer

Criteria 2 : Right density ofpale

Quality criteria monitoring with Lean Six Sigma method

Criteria 3 : Taking out « byssus »for better conservation


3.4) Quality in a cooking process

HACCP procedures on cooking process

Large offer = Different Flavors for Different customers

Food safety

Food qualityFood Quality

Food Safety

Food quality

Parameters monitoring with Lean Six Sigma method

Temperature

Cooking time

Best before

Microbiology

Different cooking processesfor different flavors


3.5) Our References

Lean and Six Sigma projects :•Kellogs (Six Sigma on packaging),•Britvic Soft Drink (Six Sigma on packaging and logistic),•Mars (Six Sigma on packaging),•Twining (Lean and Six Sigma on conditioning and packaging),•Virgin Drink (Lean in logistic),•Socopa (Meat processing, Traceability and Lean Management),•Fleury Michon (Six Sigma diagnostic through Consumer Help Desk),•Euroserum (Entremont) (milk processing, traceability and Six Sigma management),•Hero France (canning industry, traceability and Lean Management),•Coop de France (Agriculture whosaler, Lean management),•Rungis fishery (Quality management and Lean management).

Flexibility project on 2010:•Pharmaceutical industry (new markets),•Soft drink.


PART 4

Quality Management withLean Six Sigma method


4.1) Lean Six Sigma principles

Six Sigma is a quality improvement methodology based on statistical tools. The objectives of Six Sigma is to deliver « Zero-defect » to the customer.Six Sigma method started in the electronical and mechanicalindustries in the mid 1980’s.

Lean is an operational improvement methodology based on optimisation tools. The objectives of Lean is to reach the bestperformance in operational management.Lean started in the car industry in the 1990’s and is now widelyused in different industries and services.

Combining Lean and Six Sigma (Lean Six Sigma) is managingfor the customer quick delivery with no defect.Lean Six Sigma is the best method for business commitmentson quality.


4.2) Managing the quality commitments with Lean Sigma

Professional buyers look for commitments on qualitycriteria.

The brand is linked with quality criteria.

Labels and certificates are a good support of brand management but don’t support the business commitment of quality

The business commitment of your criteria will bemanaged by Lean Sigma method.


4.3) Labels management without Lean Sigma


4.4) Labels management with Lean Sigma


4.5) Advantages of a brand managed by Lean Sigma

-To be known by the foreign professionnal buyers,-To commit to the quality criteria of the brand,-To have a method’s package for implementing qualitycommitments on market criteria,-To switch from low price selling to quality priceselling and have better margins,-To have a quality image on the french and europeanmarket,


4.6) Success and results of Lean Sigma methodon quality management

NUMERAL ADVANCE food industries referencesare demonstrating:

-An increase of 20 to 30% sales when promoting a global brand and global quality from an agricultural region,

-Improvement of 5 to 10% in margin introducing Lean Sigma in the management of the quality criteriacommitments.


PART 5

Service offer


5.1) NUMERAL ADVANCE technical proposition

NUMERAL ADVANCE experts are supplying to :

-Settle the matching between the customer’s criteria and yourcompany quality characteristic,-Establish your quality selling price,-Benchmark your company capabilities to the market criteria to establish business forecast,-Point out the key features of your company safety and qualityorganisation in order to fulfil the safety and quality criteria,-Set up the business plan of your quality policy,-Starting to build your brand.

Price (depending of the size) : starting at 10.000 Euros


5.2) NUMERAL ADVANCE business proposition

After deploying the technical proposition, NUMERAL ADVANCE will market and promote your products on someof the French and European customers :

•Food processing industries,•Fast-food industries,•Catering companies,•Mass marketing companies and retailers,•Restaurants.

Promotion on the European Fair Trade (SIAL 2012, British PrivateLabel, MDD Expo…).

Price (depending of the size) : % commissions

Tracanumeral is NUMERAL ADVANCE label for tracing the quality criteria


5.3) « Quality for business » programme

With the programme « Quality for Business » ofNUMERAL ADVANCE, your quality is in the business.

This is the answer to:

•How to market the value of Quality ?

•How to integrate the Quality plan into the business plan ?

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