the value of an engaged workforce for the food industry
TRANSCRIPT
The Value of an Engaged WorkforceMark Moshier | Laura Dunn-Nelson
February 17, 2015
Today’s Speakers
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Laura Dunn-NelsonAlchemy
Mark MoshierArrowsight
Diana PeñaModerator
Webinar Logistics
3Confidential and Proprietary
• All lines are in listen-only mode
• Post your questions early and often!
• A link to the webinar recording will be emailed shortly after the event
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Poll QuestionWhat is your company focus?
A) Cost
B) Quality
C) Safety
D) All of the above
Industry Challenge
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$450 – $550 Billion in
lost productivity
70% of workers are
either unengaged or
actively disengaged
$
Source: Gallup
Common Reasons for Disengaged Employees
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• Lack of effective training
• Ill-defined performance expectations
• Inconsistent coaching by supervisors
• Inadequate executive leadership support
• Poor equipment/work environment
FRONT-LINE WORKER CHARACTERISTICS
High direct impact on safety, quality, yield and productivity
High risk environment
Multilingual and multicultural
Highly diverse workforce
Limited computer access
20% to 100%+ turnover
The Front Line Supervisory Reality
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• 50 – 70 hours per week expected
• Generally poor bonus or profit sharing %
• Annual compensation range: $35 - $55K
• Educational level: usually high school diploma and perhaps some college
• Generally either long term with no mobility or short term transient
• < 30% Grade A in most facilities
• Most do not pursue balance: C+ Q+ S
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Why Do Companies Exist?
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To Return Dividends to Shareholders!
The Front-line Workers & Supervisors are Key
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Safety
Productivity
Quality
Yield
All of which drive PROFIT EXPANSION
Front-line employee behavior and supervisor interaction drive improvements in:
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Key Profitability Levers
•Uptime
• Labor
•Waste
•Rate
• First Pass Quality Production
•Yields
•Raw Materials, Packaging, Energy, Infrastructure
Just imagine…
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How well a business process will perform if the front line supervisor is
• Driven
• Accountable
• Has the tools to excel in cost, quality, and safety areas
Example - Yield Gains
Fully Cooked Bacon; Reduce over
grading and de-valuation of high
value product
• Audit Applications: assess grader
performance every 15 minutes;
remove ends & pieces only
• Feedback Methods: real-time
email alerts to managers;
automated daily & weekly email
reports
• Results: Reduced over grading
>1.5% of product flow = >$325,000
per 2 shift line/yr.
Reduce over grading by operator
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Example - Harvesting Efficiency
Valued added DSI process: yield
optimization program
• Audit Applications: assess
operator harvest of high value
portions vs. trim
• Feedback Methods: real-time
email alerts to managers;
automated daily & weekly email
reports
• Results: 1.5% increase in portion
yield valued at >$300,000 per
shift (4 line) department
Multiple audits per operator per shift for proper harvest of high value
portions vs. trim
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Poll QuestionWhat % of “superstar” supervisors do
you have in your organization?
A) < 10%
B) 11% – 30%
C) 31% - 60%
D) > 61%
Recent Research
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68%
82%94%
Pre-Training Post-Training After 3Observations
Source: Behavior Change Study
24/7 Communications
TrainingCoaching
Innovative Employee Communication
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Example – Farmer John Challenges
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Challenge:
• 100% Turnover of new hires
• Negative morale among supervisors and employees
• Poor productivity
• Average quality
• Estimated annual cost?
– $9M (hiring, training, production losses)
Example – Farmer John Action Plan
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Actions:
• New selection process
• New hosts of orientation
• “Make their day”
• Updated orientation material – relevant to the employee
• First two days – classroom only, tour department with supervisor
• Increased safety and medical involvement
• Probation completion ceremony after 90 days –
– “We are Farmer John”
– Safety and HR
– Evaluation of process from both the employee and the manager
– CIP
Example – Farmer John Results
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<20% turnover of new hires
Increase effectivenesswhile increasing efficiency
Operations attaining annual productivity goals
Results:
Example – Increasing Productivity
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Beef Plant /Backing Heads
• Effectively trained trimmers cut an additional 50 grams/animal
• $0.02 x 50 grams/animal = $1.00/animal
• Daily increased yield/3,500 animal operation = $3,500
Increase Profit?
$3,500/day x 5 days/week x 52 weeks/year = $910,000!Realized from optimized use of existing equipment and existing personnel
Taking It Home - Engaging Your Workforce
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• Identify those key operational areas needing improvement
– Ex. Take your ‘best” employee’s behaviors and duplicate them in all of your employees?
• Create an appropriate cross functional team to effect change
• Leverage employee training and communication tools
• Establish metrics for measuring success
• Actively monitor and trend data
• Use data results for continuous improvement
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Q & A
THANK YOULaura Dunn Nelson, Alchemy
Telephone: [email protected]
www.alchemysystems.com
Mark Moshier, [email protected]