1. BA 395 – independent research Tori Bybel Dom DiBetta Kevin Mcnavage Kyle yorke Dr. jenniferedmonds Lean & Green Operations in Local NEPA Businesses
2. Project Introduction Dr. Jennifer Edmonds What does it mean to be LEAN? Kevin McNavage What does it mean to be GREEN?Dom DiBetta What does this mean for Restaurants?Tori Bybel The Restaurant Industry - Scope of Project Kyle Yorke Next Steps Dr. Jennifer Edmonds Your questions are welcome at any time…
4. Defining Lean A systematic approach to identifying and eliminating waste (non-value-added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection
13. Definition of Value Added Value added- Any activity that increases the market form or function of a product or service. (Things customers are willing to pay for) Non-Value-Added- Any activity that does not increase the market form or function & is unnecessary ( These should be eliminated, simplified, reduced, or integrated)
14. Beginning of Lean Born in 1914 with Henry Ford’s Motor Company Mass Production Assembly Line (Batch Processing) - Production at rapid rate What about the customer? - Choices - Demand - Satisfaction
15. Toyota Production System(TPS) Inability to compete - Lack of money & space Imperative: become innovative After WWII - Ford 10x more productive than Toyota
16. Toyota Production System cont.. Revolutionizing Japanese Automotive Industry - Gap between U.S. & Japan reversed Benefits to Customers - More Productive - Higher Quality “One Piece Flow” Doing More With Less Coined “Lean Manufacturing”
17. Lean Manufacturing and the 5 S’s The Five Kaisen Principles Sort: keep only necessary things Set in order: arrange efficiently Sweeping: maintain cleanliness/avoid clutter Standardize: proceed efficiently Sustain: cooperative working environment Use Team Effort to succeed!
18. Real World Examples Caterpillar Issue: Tools in wrong location & Wasted Time Outcome with Lean Manufacturing - Millions saved in parts & labor costs - 80% Reduction in internal manufacturing lead time
19. Real World Examples McDonald’s Issue: Overproduction and Motion Waste Outcome with Lean Manufacturing One Piece Flow > Batch Systematic production line Millions saved due to efficiency
20. Keys to Sustaining Lean Internalize into daily routines Never ending process Provide discipline/motivation/incentives Visible management commitment Open Communication Standardize as not to slip back
22. What it means to “Go Green” Changing global climates created awareness for mother earth. Understanding what practices effect the environment Make changes to benefit the environment and yourself Evaluate the outcomes and continue to grow
23. Green Practices for Businesses Do it and do it right Local, State, and Federal Laws and Regulations Environmental, Health, and Safety Walk the walk, Talk the talk Prove what you say you have doneand will do
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25. Room for Improvement Be practical and profitable Benefit the business and environment
26. Vision Statement Idea to Implement Everything you would like to see becomea reality Foundation for customers, stakeholders, community,and all employees to show your willingness to investin the environment Get Feedback Which employees and team members are on board
31. Employee participation is crucialPromote participation, going above and beyond, and unbridled acts to the company’s vision Creating incentives, rewards, and recognition plans for those who step up and take on more than what’s expected of them
38. Where To Focus Energy Audits Free or inexpensive Yield huge financial savings Using energy service companies that make upgrades at little or no cost to your company Alternatives to toxic products Cleaners, toners, glue, batteries Seek out better options to reduce toxic emissions and waste accumulation
55. Where To Focus Understanding product life-cycle Know how long they are good for and good inventory management to make sure they are used before they are unusable or will run out Shelf life for food Expected life for uniforms
56. Help Yourself and Help Others Apply for corporate environmental awards to benchmark success and sustainability efforts Take advantage of financial incentives to meet your goals Share your experience and get more people on board by showing the possibilities
63. Motion Flow of the kitchen Cooking, desert, dishes, ovens etc. Different Areas One or two entrances: In/Out Set up of Restaurant Floor Tables, Entrance, Waiting Area
64. Production Defects Wrong Order Over/Under Cooked Too much/too little Not well prepared..(hair in food or contamination)
67. Seeking Alternatives Meat, Dairy and Eggs Produce Seafood Food Transportation Coffee and Tea Bottled Beverages
68. Choose Alternative Location of Restaurant Based on Menu: Size: number of items Type of food, Italian, Chinese, Deli Cost Specialize: Breakfast, lunch, dinner
69. Take Action Add or Remove old items Reduce Wastes Change suppliers Long distance to local
70. Dining Operations Cleaning Chemicals “Green” Cleaning products Limit toxic cleaning products Waste and Recycling Cooking and Refrigerating Equipment Energy efficient Turn off when not in use
71. Dining Operations Water Use Flow valves to reduce water use Water efficient dish washers Construction and Design Efficient lighting HVAC technology Update to “green” standards
74. Importance 2010 Overview: Sales ($580 billion) Locations (945,000) Employees (12.7 million),will reach 13.3 million by 2012 Share of the food dollar = 49% 1/3 of adults in the U.S. have worked in this Industry
75. Research $2,698: Average household expenditure for food away from home in 2008 52 %-of adults say they would be more likely to patronize a restaurant if it offered a customer loyalty and reward program. 57 %-of adults say they are likely to make a restaurant choice based on how much a restaurant supports charitable activities and the local community. 56 %-of adults say they are more likely to visit a restaurant that offers food grown or raised in an organic or environmentally friendly way.
77. Industry Size Small - Mid Size Restaurants Eliminating franchises/ big business Focusing on Mom and Pop type businesses Definition: privately owned and operated, with a small number of employees (less than 100) and relatively low volume of sales. Local example: Januzzi’s Pizza
79. Luzerne County Restaurants List of 680 potential Restaurants Made available by the SBDC Further Research will decide which ones will be used specifically in our study
80. Data Collection Prepare a questionnaire to conduct interviews with ‘local’ restaurants Data Preparation How green are we? How lean are we? How do local restaurants compare? Next Steps
81. References Environmental Defense Fund website - Green Dining Best Practices http://innovation.edf.org/page.cfm?tagID=34864&s_src=ggad&s_subsrc=greendining&gclid=CK_T-ZKZuqQCFRI95 Collier, David., & Evans, James. (2010). Operations Management (Student ed.). South-Western Cengage Learning. Greening Your Business." GreenBiz. Green Business Network, 2001. Web. www.greenbiz.com National Restaurant Association website. http://www.restaurant.org/research/facts/ http://www.allbusiness.com/manufacturing/food-manufacturing-fruit/701215-1.html http://en.wikipedia.org/wiki/Small_business
