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Client TRACC Journey: Kellogg’s Latin America

Kellogg's

With the accelerating pace of global change, multinationals such as Kellogg’s constantly need to adapt their go-to-market strategies, as well as the logistics resources and capabilities necessary to support end consumer demand. Consequently, before embarking on its World Class Manufacturing journey in 2009, Kellogg’s identified several challenges: World economic changes, supporting consumers and clients, how the supply chain could be a facilitator and not an obstacle, developing people to manage the business in the future, and creating future results today.

Today, Kellogg’s is forging ahead with K-Lean, transforming into the Kellogg Work System (KWS). TRACC continues to be part of this journey.

After a meticulous selection process during 2008, Kellogg’s selected the TRACC Operations Best Practices to drive its K-Lean continuous improvement initiative at its four Mexican plants. Once successfully introduced during the course of 2009, K-Lean was extended to the four remaining Kellogg’s plants in Latin America, including Colombia, Venezuela, Ecuador and Brazil. A strategic imperative for Kellogg’s was that once the manufacturing fundamentals were in place, the focus would shift to how to win and how to lead its category and industry.

The aim was to create an end-to-end supply chain, while seeking to establish manufacturing excellence, customer service, and logistics as competitive advantages. A best practice assessment conducted in 2013 revealed that the Planning component was the single biggest cause of bottlenecks in the supply chain.

The challenge for Kellogg’s was to build capability to effectively deliver the company’s products across the region to suit different markets and different consumer needs through different channels. And, although the application of Lean tools in an office environment seemed foreign at first, it turned out to be a powerful way of introducing a proven operations standard to people processes.

Today, Kellogg’s is forging ahead with K-Lean, transforming into the Kellogg Work System (KWS). TRACC continues to be part of this journey.

 

TRACC MILESTONES

2009

After a meticulous selection process, Kellogg’s selects the TRACC Operations Best Practices to drive its K-Lean continuous improvement initiative at its four Mexican plants. The Querétaro plant is identified to convert plant capacity improvements quickly into product sales and cash flow. A series of kaizen blitzes for maintenance procedures is introduced to reduce maintenance intervention time.

HIGHLIGHT
The kaizen team at the Querétaro plant won a global kaizen award for successfully improving production volume targets, resulting in a 30% increase in sales. The plant also increased packaging throughput equivalent to 100 days of capacity. Today the plant is the largest in Latin America and is one of Kellogg’s top five plants worldwide in terms of production volume.

After this exercise, teams no longer saw themselves as separate departments with separate job functions, but as a multidisciplinary team who were working towards a common goal, and who were capable of better results when they worked together. They now understand how their roles interlink and are continually finding ways within the system to improve.
— Alejandro Arenas, Operations Manager, Querétaro Plant

2010

K-Lean is rolled out on the shop floor and implemented at all eight Latin American plants, four of which are in Mexico.

HIGHLIGHT
The number of boxes produced at the Querétaro plant increased by 50%, setup time for fumigation was reduced by 40%, and time spent on dryer clean-up was reduced by 66%. Teamwork also resulted in a reduction of production cycle time and nonproductive time (cleaning and fumigation).
Kellogg's

The integrative approach of TRACC proved crucial in the second leg of our improvement journey. Introducing the Administrative Excellence TRACC to the non-manufacturing side was made much easier as the Lean principles of identifying and eliminating waste were already entrenched on our manufacturing side. We believe that this TRACC completes the ‘Make’ piece of our end-to-end supply chain.
— Victor Muñoz, Continuous Improvement Manager, Kellogg’s Latin America

2011

Just over a year after the pilot implementation at Querétaro, overall operating efficiency increases by 5%. This improvement helps pave the way for full implementation across all eight sites.

Kellogg's
2012

This year sees the reinforcement of the K-Lean Program across all the plants, plus the introduction of the Administrative Excellence TRACC in Mexico and Colombia.

2013

Four years after the introduction of the TRACC-driven K-Lean program, the LatAm region becomes the first at Kellogg’s to implement four TRACCs from the TRACC Value Chain Improvement Solution: Value Chain Alignment, Demand Planning, Supply Planning, and Sales and Operations Planning.

HIGHLIGHT
Unplanned orders and change requests reduced by 94.5% through adherence to planning discipline, value-added metrics and visibility of impact to scheduling. In addition, customer demand is now increasingly being anticipated and met “on time in full”.

Kellogg's

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