LEAN & GREEN Restaurants (F10-1)

BA 395 – INDEPENDENT RESEARCH

TORI BYBELDOM DIBETTA

KEVIN MCNAVAGEKYLE YORKE

DR. JENNIFER EDMONDS

Lean & Green Operations in Local NEPA

Businesses

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…

Lean

Kevin McNavage

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

Lean = Eliminating Waste

Non-Value Added (downtime)• Defects• Overproduction• Waiting• Not utilizing employees (People Waste)• Transportation• Excess Processing• Motion Waste• Space

*Typically 95% of lead time is non-value added*

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)

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

Toyota Production System(TPS)

Inability to compete- Lack of money & space

Imperative: become innovativeAfter WWII

- Ford 10x more productive than Toyota

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 LessCoined “Lean Manufacturing”

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!

Real World Examples

CaterpillarIssue: Tools in wrong location & Wasted TimeOutcome with Lean Manufacturing

- Millions saved in parts & labor costs- 80% Reduction in internal

manufacturing lead time

Real World Examples

McDonald’sIssue: Overproduction and Motion WasteOutcome with Lean Manufacturing

One Piece Flow > Batch Systematic production line Millions saved due to efficiency

Keys to Sustaining Lean

Internalize into daily routinesNever ending processProvide

discipline/motivation/incentivesVisible management commitmentOpen CommunicationStandardize as not to slip back

Green

Dom DiBetta

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

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 done

and will do

Understanding The Impact

• Understanding how the business affects the environment and relates to the relationships with suppliers and consumers What you buy, sell, and how your perform

Tracking Operations (day to day) Utilities usage, waste management, raw materials,

packaging, purchasing, emissions, inventory management

Room for Improvement

Be practical and profitable Benefit the business and environment

Vision Statement

Idea to Implement Everything you would like to see become

a 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

Vision Statement

• EXAMPLE: The Company intends to respect the

environment in the design, production, and distribution of its products and services, committing to be in full compliance with all laws and regulations and go above and beyond whenever possible, procedure compliance for all employees, community members, and all others to access through documented action plan.

Make a Plan

• Commit to an action plan• Areas to address

• Gather support• Employee participation is crucial

• Promote 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

Where To Focus

• Administrative Waste» Paper utilization» Using fewer products and raw materials

Huge financial gains can be found here» Green printing

Printing supplies and printersRecycled paper

• Reduce, Reuse, Recycle Culture» Recycling stations» Wasted materials are wasted money» Increase efficiency for all materials, get innovative

Where To Focus

Purchasing• Commit to environmentally preferable products• Buy items made from recycled materials• Seek reconditioned, usually at a much lower cost• Work with suppliers to meet both of your goals• Understanding of the purchasing policy will ensure

success

Rent Instead of Buying Equipment• Copiers, computers, ovens, etc• Ensures a recycling or reusing processes is in place

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

Where To Focus

• Lower Energy Needs and Consumption» Turn off lights in unused areas, equipment that is not in

use especially during after hours and weekendsUtilize motion sensors and timersReflectors for fluorescent fixtures, compact fluorescent

bulbs instead of incandescent» Equipment and appliances

Energy star and updated machinery to better allocate labor usage and energy consumption and space optimization

Where To Focus

• Heating and Cooling» Efficient Insulation of building» Windows and Doors

Sealing and Retaining» Updated and efficient heating and cooling units» Thermal camera to evaluate energy losses

Where To Focus

• Water utilization» Frequent water audits to evaluate water leaks and have

them repaired quickly» Timed irrigation» Create awareness among team members to use effectively» Low flow aerators» Seek out low flow appliances» Reuse water

Rain water for irrigation

Where To Focus

• Transportation» Max MPG» Alternative fuel» Alternative travel

Car pool, mass transit, bicycles» Upkeep on current vehicles to get the most out of them

Tune ups, tires and tire pressureFuel additives to lower emissions and aid in consumption

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

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

Restaurants

Tori Bybel

Four Basic Lean Principles

Elimination of wasteIncrease speed and responseImprove qualityReduced costs

Eliminating Waste

OverproductionWaiting timeInventoryMotionProduction Defects

Overproduction

Messing up ordersCooking too much foodWasting MaterialAll Affects Inventory

Waiting time

Inflow and outflow of customersEnough WaitersEnough Kitchen staff

Inventory

IngredientsPrepared FoodFrozen foodRunning out of menu options

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

Production Defects

Wrong Order

Over/Under Cooked

Too much/too little

Not well prepared..(hair in food or contamination)

Improvements

Indentify Problems

Seek Alternatives

Choose Alternative

Take Action

Indentifying Problems

Conventional productionDangerous chemicalsEnergy CostsIncreasing Carbon Footprint

Seeking Alternatives

Meat, Dairy and EggsProduceSeafoodFood TransportationCoffee and TeaBottled Beverages

Choose Alternative

Location of Restaurant

Based on Menu: Size: number of items Type of food, Italian, Chinese, Deli Cost Specialize: Breakfast, lunch, dinner

Take Action

Add or Remove old items

Reduce Wastes

Change suppliers Long distance to local

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

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

Improving Practices

Decreasing Carbon Footprint

Decreasing Costs

Decreasing Waste

Increasing Quality

Increasing Satisfaction

Increasing Lean & Green Practices

The Restaurant

Industry

Kyle Yorke

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

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.

Limitations

Restaurant Sizes/ Types

Locations (NEPA)

How to target particular businesses?

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

Area Restrictions

PA (24,397)

NEPA

Luzerne County

Mainly Scranton/ Wilkes-Barre

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

Data Collection

Prepare a questionnaire to conduct interviews with ‘local’ restaurants

How green are we? How lean are we? How do local restaurants compare?

Next Steps

Data Preparation

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