Case Study - Kitchen Range Foods using Mfg/Pro

Implementation of MFG/PRO ERP system in the food industry

by Phil Robinson (BPIC) - Comments to : phil@bpic.co.uk
URL : http://www.bpic.co.uk
As with most things, taking the first
step towards new working
attitudes and procedures is the
most difficult. Both as individuals
and companies people find it hard
to admit there may be room for
improvement. This is especially
difficult when you are already a
success, but that is exactly the
time to make those vital moves to
ensure tomorrow's performance is
as good as today's. Kitchen Range
Foods is a case in point.

Jargon Warning
If this case study uses terms with which you are
unfamiliar, you can look them up in the Jargon
Buster at http://www.bpic.co.uk/jargon.htm. For
more details see Business Excellence (ISBN 0952-8885-05) by Phil Robinson.

There can be few more demanding markets to service than that of speciality foods, in both
product quality, originality and lead time, but since it's inception in 1971, Kitchen Range
Foods has set and maintained the highest levels of performance. This is why it has
become a major force in the field, counting many well known catering establishments and
leading grocery chains amongst its customers. It is also a major supplier to the world's
best known fast food exponents, McDonald's.
Kitchen Range Foods started as a family owned concern and
employs just under 300 people in total across its three production
facilities. All situated in the East Midlands, at Huntingdon, Bakewell
and Bar Hill, each operation runs autonomously and is dedicated
to separate product lines.
At Bar Hill, all the vegetable lines are produced, including stuffed
and coated mushrooms, cauliflower, sweetcorn and broccoli along with vegetable burgers
and cheese novelties such as Mozzarella Fingers and coated Brie Slices. The new green
field site at Huntingdon is responsible for a wide range of potato products, featuring such
items as Nobblies, seasoned mashed potato noisettes, Potato Thins, crispy coated potato
wafers and potato based pizzas and waffles.
At Bakewell, all the sweet lines are produced, including American style donuts, a selection
of fruit desserts and the renowned McDonald's apple pie.
Kitchen Range Foods has enjoyed success from the outset, as Chief Executive, Simon
Lebus, son of the company's founder explained: "The speciality food market has grown
consistently during the last twenty years with the number of outlets increasing steadily
alongside the frequency with which people eat out".

"In addition the desire for wider choice and more unusual flavourings remains unabated,
creating a climate for quality food producers to flourish. The emphasis however is firmly on
the quality and it is for this reason that we at Kitchen Range never relax our drive for
improvement in all areas".
It was this desire for continuous improvement that led to the decision in 1994 to install the
comprehensive integrated manufacturing software system MFG/PRO and the formation of
a project team to evaluate the available solutions. At about the same time, fortuitously,
Simon Lebus heard about a seminar being held on the topic of Achieving Business
Excellence and brought it to his colleagues' attention.
The event was one of a series run by MRP Ltd, leaders in the field of manufacturing
education and consultancy and specialists in the best and latest techniques and
methodologies for continuous improvement in manufacturing, from purchasing and supply
through every aspect of production control to distribution, demand management and most
importantly customer service.
"All we heard at the seminar seemed to be exactly in line with our plans at Kitchen Range",
says Simon Lebus, "It also made us realise that what we wanted to achieve required far
more than simply selecting and implementing a good computer system. We needed to
educate all our key players to understand the whole concept, detail the objectives and
define performance measures to accurately monitor our progress".
The project team chosen was cross functional, with representatives
from finance, production, purchasing and logistics, two of whom were
full time. Denise Fassler, from the finance department, became the full
time project leader.
To support this, a top level steering committee was set up, headed by
Simon Lebus, then Managing Director of the Bakewell operation where
the project was initiated. It was completed by Mike Ellison, Divisional
Operations Director and David Parsons, Divisional Finance Director,
These were further supported by visits from Mike Salmon, Managing
Director of MRP Ltd in a consulting capacity to clarify areas of
contention and assist with problem solving.
Weekly review meetings were held between the project team and the Steering Committee
to keep the project on course. The meetings were not as successful as they should have
been as the steering committee did not question and probe so the plans were often
disjointed.
Twenty one key users were identified and they, along with the project team, attended all
the relevant external courses, as a result of which a variety of internal activities were put in
place, including education sessions, and weekly bulletins, to ensure the whole workforce
was brought up to speed and kept informed of progress. "It was important", says Denise
Fassler, "that everyone understood the aims of our Business Excellence Programme, as
we named it, and believed that it belonged to the business as a whole and each of them
individually, not to the project team". Simon Lebus feels this was a great success as he
sees enthusiasm for Business Excellence throughout all areas of the business.

Getting the timing right for education is always difficult, for instance Denise attended the
Implementors course about 6 months before she was appointed project leader. She also
believed they should have asked the people who attended courses to make presentations
on their return.
During this phase, software selection had been progressing and a decision had been
reached to implement MFG/PRO (now re-branded Global Enterprise Edition), one of the
most respected manufacturing solutions on the market at that time, supplied by Minerva
Industrial Systems (now Maxima) . Here too the project team and functional managers
enjoyed the benefits of system training and workshops to familiarise them with the product
and its application to Kitchen Range Foods.
Many people helped the implementation. MRP Ltd has a thriving base of experienced
users. This was of immense benefit. "During the early days of the project our phones were
red hot as opinions were sought and advice given by companies who have successfully
negotiated the implementation trauma", says Denise Fassler. She continues, "We visited
various Business Excellence companies, including Wrigleys, Norbar Torque Tools,
Courtaulds Socks and F.W. Talbot all of whom were incredibly willing to share their
experiences and help us learn from their mistakes". Denise felt these visits were very
importance. The Minerva consultant appointed to the project was also very helpful.
A major issue at Kitchen Range was eliminating the duplication of information. There was
a plethora of departmental software packages on a selection of databases which led to
dissention, confusion, time and paper wastage. A golden rule of MRPII and Business
Excellence is that the whole business works to one set of figures and one master plan,
arrived at through the Sales Operations Planning Process and held on one database.
Agreeing this basic information was the key to success for the whole project. Now every
department knows the correct procedures and working processes, whilst MFG/PRO
provides the integrated software technology to hold all the information and make all the
necessary transactions and calculations required to maintain accuracy.
Another important priority was involving suppliers in the process. An education session
was developed, the first presentation was attended by twenty five key suppliers and
received with encouraging enthusiasm and this process was repeated to all significant
vendors as part of a full vendor "partnership" programme. This was seen as another key
element to the success of the project. Kitchen Range Foods had never used vendor
schedules before so it was vital that vendors knew what to expect.
On January 2nd 1996, after just about a year of intensive work, education and training
Kitchen Range's Bakewell Division cutover to their new ways of working. As for the results,
Denise Fassler and her project team colleagues could certainly show an instant reduction
in working hours and increase in dreamless sleep and Simon Lebus, now Chief Executive,
is certain Kitchen Range is on track for even greater success.
Looking back on the project now, Denis can see areas for improvement that would have
made the project even more successful and will be useful for other companies
implementing planning systems. Kitchen Range Foods did not do enough education. The
21 key users who were educated were not able to get right down to the root of the
business. Also, the conference room pilots were not thorough enough. More time was
needed and a better quality of data to really make them effective. It would have been

better to have a smaller quantity of accurate data that a large amount of poor and
incomplete data.
The above meant that the project team had too much to do in the 2-3 months after going
live. They were the only ones who
knew the whole story.
Overall, Kitchen Range Foods is a
fine example of British
manufacturing management
getting it right. So many times
companies sit on their laurels and
only take action to implement new and better methodologies when the profits fall and the
competition moves into their market. Kitchen Range was already a tremendously
successful business, it had won a Management Today Best Factory Award in 1994, was
expanding its product range and customer base and experiencing 20% year on year
growth. But the top team knew standing still is not enough. They had the desire to strive
continually for improvement and were willing to change as necessary to achieve it. They
have good products, good people and a winning attitude, in fact all the ingredients for
success.

Business Excellence at Marine Projects, Plymouth

by Phil Robinson (BPIC) - Comments to : phil@bpic.co.uk
URL : http://www.bpic.co.uk
Could there be any more glamorous luxury
purchase than a custom built yacht? No expense
spared, the best design and construction
complemented by designer fittings and furnishings?
This kind of wealthy indulgence is a popular dream
for would-be lottery winners.
But looked at from the other side, it has all the
makings of a manufacturer's nightmare. Low
volume, high value, a multitude of options, (in fact
virtually unlimited) and some of the most
demanding individual customers in the world.

Jargon Warning
If this case study uses terms with
which you are unfamiliar, you can
look them up in the Jargon Buster
at
http://www.bpic.co.uk/jargon.htm.
For more details see Business
Excellence (ISBN 0-952-8885-05)
by Phil Robinson.

Add to this the complexity of a product which requires top skills in engineering and
construction along with quality craftsmanship in carpentry, plumbing and interior
decorating to name but three and you can understand the difficulties involved in achieving
a reputation as a world class supplier.
Marine Projects in Plymouth has done exactly that. Since its
inception in 1965 when three friends including David King, now
the company's Managing Director, built and sold their first boat,
the company has grown to become the acknowledged leader in
its class.
Despite increased challenges from home and abroad and the
severe effects of the recession on luxury products, it continues to
grow. Establishing high standards and continuing to improve them faster than the
competition can catch up is no easy matter but it is one in which Marine Projects is
determined to succeed.
Chris Gates, Production Director explains, "As with many industries, recession
dramatically changed our trading environment. We had to control our own production
processes more closely and improve the responsiveness of the whole supply chain, and
quickly. In the last four years all but the biggest and most efficient suppliers have gone to
the wall. Regulations on performance, health and safety have escalated and the
previously reliable home market has come under a great deal of pressure. We decided to
implement a manufacturing and business control system and achieve BS 5750
accreditation, not for the kudos of a badge on our notepaper, but to install a basic
discipline and customer focus which we knew must become our priority if we wished to
survive".
Marine Project's original single site business had by 1990 expanded. It now comprises
three geographically separate sites each responsible for a different stage of production

that takes the boat from design and specification through construction and assembly to its
final sea trials.
Although each boat is unique there is a selection of basic models on which the eventual
finished product is based. These range from a 3lft Moody sailing boat which retails at
around 55,000 to the largest and most opulent ocean going yachts which set their owners
back anything up to three quarters of a million pounds.
Making the move from a manual to a computerised system requires an enormous amount
of work to specify bills of material, routings, supplier and customer details, and total
inventory data. It also represents the most traumatic changes in working processes and
behaviour. At Marine Projects, an environment where everyone did their own job in their
own way, and no formal procedures existed, it was a daunting task.
Marine's Projects's first action was for the entire management team to attend a Top
Management Course run by Mike Salmon's MRP Ltd and following that, to have Salmon
come into the company and help them establish the foundations for a new way of running
the business. Following this a multi-discipline project team was formed, called the Blue
Print Group to reflect the nature and priority of its activities, to draw up a Blue Print Plan of
how the company would operate after the changes were achieved and define why and
how this should be accomplished.
The requirements for success at Marine Projects are fascinating to Mike Salmon.
"Implementing MRPII principles in this type of industry is very different," he says. "The
challenge is to retain all the individual skills and workmanship along with the unique design
features and quality finishing required to produce a made to order, hand crafted, luxury
item, built to demanding engineering specifications, whilst simultaneously controlling costs
and inventory, streamlining production processes, increasing responsiveness and
maintaining the highest levels of customer service." Salmon's experience in this
environment gained during his extensive work with Rolls Royce Motors was a major
benefit to Marine Projects.
The next task for the Blue Print Team was to select a pilot site for the project. They chose
the moulding factory which has the most diverse production processes. In addition to
being the most complex, the area was the least efficient, but it serviced only internal
customers, supplying the finished product to the final assembly site, so was a low risk start
point. The customer service level from the factory was not measured, but Gates estimates
it was as low as 20%. By applying MRPII disciplines this figure has moved to one
consistently at 95%. A pleasing by-product has been a dramatic improvement in the
appearance of the shopfloor, bringing a new aura of order and visibility, making it much
more attractive to visiting prospective customers.
People who had previously shouldered the blame for shortages even though there were
no bills of material, and delays, even though there were no formal production schedules,
suddenly found that if they knew what job was due, then materials could be procured in
time to complete it. Skilled craftsmen who had thought the new methodology would
interfere with their individual style found that the provision of timely schedules and
accurate information made their life easier.

In common with the luxury end of the automotive industry, the boat trade has to master the
complexities of mass production, allied to reliability, quality and a range of models within
which there is almost unlimited option choice. The first boat business to successfully
achieve this combination will be, if not invincible, then measurably ahead of its rivals.
Chris Gates comments further. "We have taken a giant step towards that goal by
implementing Sales and Operations Planning, the process from which all other procedures
flow. Headed by the Managing Director this process has facilitated increased forecast
accuracy, reliable capacity planning, steady production schedules and significantly
improved delivery dates. Our WIP inventory has reduced, but what remains is put to better
use, simultaneously reducing material shortages."
A particular benefit is the greatly improved cohesion between activities across the three
sites. Progress is being made towards operating a business in which all building slots are
predetermined and adhered to, so components and assemblies arrive at their next process
when they are expected, creating a virtual JIT environment.
Successful SOP stabilises day to day manufacturing activities and eliminates fire-fighting,
releasing management to address the real business issues such as new product
introduction and the management of obsolescence both of which are vital to Marine
Projects. An early benefit of the extended visibility and accurate information SOP provides
is the 400,000 the company has already taken out of obsolescence.
The Blue Print Group, along with line managers and those requiring in depth education in
specific disciplines required in the new company they had defined, attended the relevant
external courses run by MRP Ltd. An education team headed by Anita Gruitt, drew up a
plan to spread this knowledge throughout the company. Eventually, the entire workforce
attended the necessary sessions to ensure they understood why the changes were being
made and what their role was in implementing them. This is a long process and results are
not immediately visible, but Marine Projects is already realising the benefits as people
become more confident in the new attitudes and values being embedded in the business.
Chris Gates sums up progress so far. "Adopting a Business Excellence approach is an
essential step for us to move with the times and maintain our market position.
Improvements are beginning to be made in every area and results have exceeded
expectation."

Business Excellence at The Wrigley Company using BPCS software

by Phil Robinson (BPIC) - Comments to : phil@bpic.co.uk
URL : http://www.bpic.co.uk
As manufacturers of a wide range of products,
including chewing gum, Wrigley is a name on
everyone's lips. Yet when they outgrew their
computer system they also discovered a chance
to improve the way they ran their business at the
Jargon Warning
same time as implementing BPCS from SSA.
If this case study uses terms with
which you are unfamiliar, you can
Andrew Ogle, Wrigley's Finance Director, was
look them up in the Jargon Buster
appointed Project Manager. He understood some
at
of the problems they were facing: "Different parts
http://www.bpic.co.uk/jargon.htm.
of the company often worked to different
For more details see Business
forecasts," he explained. "For example, the sales
Excellence (ISBN 0-952-8885-05)
people would ask for more than they needed
by Phil Robinson.
from the factory to provide a cushion for errors.
In turn the factory thinking that the sales team
would never sell that much, produced
accordingly. We needed to get everyone working
together".
It was decided outside help was needed and MRP Ltd were called in. By bringing to bear
more than 40 years experience in all aspects of manufacturing industry, they were able to
help the Wrigley's team to examine their operations and target areas for improvement.
The process began with external education for the project team. The implementation of
Business Excellence was then spread internally to all levels with varying levels of intensity
and scope. Through these, the workforce gained the confidence to take part in the
decision making processes. For the first time they understood not only where their
company was going, but also their place within it - The 'It's not MY problem' attitude simply
evaporated.
Managing Director Phillip Hamilton was delighted by the change this made to his role.
"The Introduction of Sales and Operations planning gradually eliminated recurring
problems and with them my role as a firefighter". Many other senior managers also found
themselves with more time to make more use of their creative skills and take advantage of
market opportunities.
When only two years into the process the changes were dramatic. Greater accuracy of
forecasts means that Wrigley were able to reduce raw material safety stock levels. This in
turn enabled them to improve quality control of goods from suppliers. Thus costs were cut
while customer satisfaction levels rose.
At the heart of the Business Excellence principles is the philosophy of continuous
improvement. At Wrigleys the pace of the improvement process continues to drive the
company to higher levels of achievement. Recent improvements include continuing to

drive up customer service by, for instance improving their ability to forecast, the extensive
use of bar codes to improve inventory record accuracy and so on. Phillip believes
everyone is proud of their excellent results.
Although it has been hard work, the process has been simple. Together MRP Ltd and the
Wrigley team took a critical look at where they were (Company I), identified its strengths
and weakness and built on them to create Company II - exactly where they want to be.

Sara Lee Case Study

by Phil Robinson (BPIC) - Comments to : phil@bpic.co.uk
URL : http://www.bpic.co.uk

As success stories go Sara Lee Household and Personal Care is a household name. Yet
when the time came to update their computer system, they found out they were failing to
achieve their true potential.
In order to choose the right system for their needs, it was necessary to take a closer look
at the business and the way the company worked. The result was to opt for the MRP II
computer system CINCOM along with the forecasting package Logol .
Sara Lee also decided to completely overhaul their total business philosophy and this is
when MRP Ltd was called in to bring an outside view to the situation and begin Sara Lee's
examination of the route to Business Excellence.
MRP Ltd were able to help the company's management team to
scrutinise every aspect of their business and see where they
could perform better. For example, they had assumed their Bill of
Material accuracy was good, but it was only between 30% and
50%. Now 99% accuracy is the norm.
John Wilks, Operations Director for Sara Lee was delighted:
"MRP Ltd delivered a set of tools that pulled together Total Quality, MRP II and JIT. This
allowed us to measure where we were, how we could improve performance and gain a
competitive edge."
The next step was to spread that culture of continuous improvement throughout the
company External education was undertaken and cascaded down internally, promoting
change from within.
Meanwhile, the change towards complete integration was kept on target by the
introduction of a Sales and Operations Planning framework. Wilks continues: "We were
able to strip out duplication and see clearly how the company was performing, which is
essential for control and improvement" .
Today, a new stock control and location system has helped improve raw materials
inventory accuracy move from 20 / 40% to 99.8%. Finished goods inventory accuracy has
risen from 20% and under to a firm 98.5%. They have made a saving of 50% on inventory
investment, yet customer service and satisfaction have reached the highest levels ever
(99.5% plus).
But the last word must rest with Sara Lee's John Wilks who would not describe the route
they have taken as easy. "MRP Ltd's role has been to hold up a mirror to show us where
we were. The rest depends on the commitment you're prepared to give, particularly
through education and training, and the skills you can draw on within the company".

"It took us two years to see tangible results, exactly as Mike Salmon predicted. But there is
only one alternative to Business Excellence, and that is business mediocrity " Class A
since June 1994, Sara Lee continues to forge ahead.