Transcript No Slide Title

Waste Reduction in the Chilled
Food Sector
Anne Norton
(PhD Student)
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Products manufactured by companies in the
Chilled Food sector include
• Recipe Dishes/ready
meals
• Fresh Pasta
• Chilled Pizza
• Delicatessen Products
• Sliced Meats
• Prepared Vegetables
• Salad Products
• Dressed Salads
• Dressings
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Dips
Sushi
Chilled Soups
Chilled Sauces
Pies, Flans and Quiches
Sandwiches
Sandwich Fillings
Desserts
Prepared Fruit
Short shelf life - must be kept chilled to maintain safety
and/or quality
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Questions to be addressed
• Where does most waste arise in the chilled
food supply chain (from farm gate to retail
outlet)?
• What are the root causes of waste?
• How might the quantity of waste be
reduced?
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Methodology to be used
Sustainable Value Stream Mapping (SVSM)
• Proposed by Simons and Mason (2002)
– Based on Value Stream Mapping (VSM),
a diagnostic technique used to visualize
the value stream of a specific product
– VSM is widely used to support the
implementation of Lean Manufacturing
methods
– Aim of Lean Manufacturing is to drive out
waste caused by operational inefficiency
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Lean Manufacturing
– An approach to manufacturing initiated by
the Japanese car company, Toyota
– Involves eliminating waste by re-thinking
the manufacturing process
– Minimize activities that absorb resources
but create no value
– Greater benefits when entire value stream
is considered (both intra- and intercompany)
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The Seven Wastes (Ohno, 1988)
• Overproduction
• Waiting (by operators and machines)
• Transportation of materials
• Unnecessary or overcomplicated processes
• Excess stock or materials
• Excess movement by operators
• Defective products
Result – low productivity, poor quality, increased
costs and wasted resources
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Lean Thinking (Womack and Jones, 2003)
• Five basic principles:
– Define value by specific product (value can
only be defined by the customer)
– Identify the value stream on the basis of a
single product (or product family)
– Make value flow without interruptions
– Let the customer ‘pull’ value from the
producer (production should be demand led)
– Pursue perfection (continuous improvement)
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Value Stream Mapping (Rother and Shook, 2003)
• Highlights bottlenecks in the production chain,
e.g. as build-up of inventory between processes
• Facilitates the identification and measurement of
– value-adding (VA) activities
– non-value-adding (NVA) activities
– necessary but non-value-adding (NNVA)
activities
• Aids analysis of information flows
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VSM Procedure
• Analyse activities in the current state and categorize
as VA, NVA or NNVA
• To achieve a desired future state:
– Eliminate NVA activities
– Minimize NNVA activities
– Optimize VA activities
– Improve information flows, e.g. from retailer to
supplier
• The future state becomes the next current state in a
process of continuous improvement
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Source: Red Meat Industry Forum (2003)
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Source: Red Meat Industry Forum (2003)
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Sustainable Value Stream Mapping extends
conventional VSM
• Considers both operational and environmental
aspects of the value stream
• Has been used to analyse CO2 emissions
arising from the transport steps of various
logistics scenarios (Mason et al., 2002)
We aim to use a similar approach to analyse
various wastes and their association with
value-adding and non-value-adding activities
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Extending SVSM
In the context of analysing physical waste:
• Identify the avoidable wastes arising from NVA
and NNVA activities
• Where practicable, eliminate or reduce these
wastes
• Where waste is related to VA activities and
currently appears unavoidable:
– Reduce as far as possible by improving efficiency
– Where appropriate, identify less harmful replacement
materials
– Identify improved methods for waste management,
including re-use, recycling or energy recovery
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Wastes typical of the Chilled Food sector
• Solid wastes
– Food, cardboard packaging, plastic packaging,
metal containers
• Emissions to air
– Greenhouse gases, e.g. from energy usage and
refrigerants
– Other permitted discharges to air, e.g. particulates
such as seasonings
• Liquid wastes
– Water consumption
– Trade effluents: (BOD/COD)
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General observations from factory visits
• Forecasting is used as an aid to predict the
likely size of orders from the retailer
• Generally inaccurate (e.g. by 50 %!)
• Production often starts in advance of
receiving the final order
• Can lead to overproduction and waste
• Raw materials have to be held in cold storage
to ensure availability – short shelf life
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General observations from factory visits
• Many ingredients are supplied fully or partially
prepared
• Meat and vegetables supplied in sealed plastic bags,
in secondary packaging (plastic or cardboard)
• Wet ingredients supplied in plastic buckets with lids
(sometimes lined with plastic bag) or in pouches
• Dry ingredients supplied in plastic/paper sacks
• Fairly small quantities, e.g. 10kg, industry standard for
ease of handling
Therefore large quantities of packaging waste
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General observations from factory visits
• Automated production lines
– More waste, mainly due to losses in pipework/hoppers,
but also damaged packs
– Greater accuracy in delivering specific weights, so fewer
under- and over-weights
– Cannot be used for ‘lumpy’ sauces
• Manual production lines
– Generally, less waste
– Less accurate weights, so more under- and overweights, especially in ‘healthy lifestyle’ products
– Greater flexibility in the types of product, e.g. ‘lumpy’
ingredients
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In summary
To reduce waste:
• Identify NVA activities and associated physical wastes
- ELIMINATE
• Identify NNVA activities and associated physical
wastes - MINIMIZE
• Identify VA activities and associated physical wastes
- OPTIMIZE through continuous improvement
Our research aims to show that SVSM provides the
insights needed to bring about improvements in
operational efficiency and reductions in physical waste
throughout the value stream
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References
Mason, R, Simons, D, Peckham, C and Wakeham, T (2002) Wise Moves
Modelling Report: Life Cycle Modelling CO2 Emissions for lettuce, apples
and cherries, URL:
http://www.dft.gov.uk/stellent/groups/dft_freight/documents/page/dft_freight_508
272-22.hcsp
Ohno, T (1988) Toyota Production System: Beyond Large Scale Production,
Productivity Press, New York
FCC/RMIF (2003) Cutting Costs – Adding Value in Red Meat, Food Chain
Centre, Watford/Red Meat Industry Forum, Milton Keynes
Rother, M and Shook, J (2003) Learning to See: Value Stream Mapping to
Create Value and Eliminate Muda, Version 1.3, Lean Enterprise Institute,
Brookline, USA
Simons, D and Mason, R (2002) Environmental and transport supply chain
evaluation with sustainable value stream mapping, Proceedings of the 7th
Logistics Research Network Conference, Birmingham
Womack, JP and Jones, DT (2003) Lean Thinking, 2003 Edition, Simon and
Schuster UK Ltd, London
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