Lean Manufacturing in Practice – Bittercube

bittercube-productsIn this blog series, I’m showcasing products manufactured in my home state of Wisconsin. In addition to sharing some fun facts about the various companies and their products, I’ll be highlighting the Lean Manufacturing Principles that are best exhibited at each respective organization. These principles are derived from the Japanese manufacturing industry and center on making obvious what adds value while reducing waste muda. The six Lean Manufacturing Principles are: 1) Workplace safety, order, and cleanliness 2) Just in Time (JIT) production 3) Six Sigma quality 4) Empowered Teams 5) Visual Management 6) Pursuit of Perfection.

A cocktail renaissance has swept across the country, inspiring a new fascination with the ingredients, techniques, and traditions that make the American cocktail so special. The use of bitters, liquor that is flavored with the pungent taste of plant extracts, has been gaining popularity over the past decade. Originally developed for medicinal and digestive purposes, bitters now serve mainly as cocktail flavorings. The alcohol functions as a solvent for botanical extracts as well as a preservative.

Milwaukee has contributed to this cocktail renaissance with the help of Bittercube. Founded by Nicholas Kosevich and Ira Koplowitz in 2009, Bittercube handcrafts eight varieties of artisanal bitters, using only naturally sourced ingredients. By happenstance, the operations are run from the location that Foamation once occupied. Milwaukee was perceived as an untapped market with room to grow. Also, the low cost of operating expenses allow for maximum revenue generation.

Henry Ford created the first all-inclusive manufacturing strategy. However, it was Eiji Toyoda, a Japanese engineer, who after analyzing Ford’s methods, improved upon them by keeping an eye out for waste. Waste (or muda in Japanese) refers to any kind of wasted motion, effort or materials in the manufacturing process. Toyoda popularized the concept of Reducing Waste, which has become a basic tenet of Lean Manufacturing and falls under the principle of Pursuit of Perfection.

The objective of Lean is that every step must add value and be waste-free. A non-value added, or wasteful activity is one that neither adds value to the customer nor provides a competitive advantage to the organization.  Some non-value added activities include waiting and inappropriate processing. Waste can also take a tangible form, such as idle raw material or defects. Although transportation is an important aspect of the manufacturing process, it is a non-value added activity, as it adds to cost but not to value. It should be noted that some non-value adding activities like accounting and regulations are important and cannot be avoided.

Lean-manufacturing-bwThe continuous Pursuit of Perfection encompasses the idea that one must always strive to eliminate waste in the organization, while constantly making improvements, even if those improvements are small and incremental.  Improving processes results in reducing or eliminating variation, and improving the process flow or speed. Learning and consistent measures for improvement should be part of all processes if an organization intends on growing.

Bittercube has reduced waste by improving on their processes. In the past, they used a generic, high-density plastic container to process the bitters. There was no way to remove the botanical material after the batch was processed, other than to climb into the container and physically remove it by hand. Although this left the person who cleaned the container smelling of cinnamon, cloves, and vanilla, it wasted time and did not add value to the process. They have since updated to a custom-built processing/cooking tank with a bottom compartment where botanical material can easily be removed and cleaned.

Bittercube previously used generic boxes that weren’t cost efficient to ship. They have since opted for custom-made boxes with dimensions that maximize the number of bottles in each box, thus reducing wasted space and shipping costs.

Lean supports the notion that nothing should be wasted and a use must be found for everything. Bittercube has also reduced tangible/physical waste by reusing and recycling the processed materials. Instead of discarding the used botanicals, Bittercute has begun composting these materials. The finer botanical sediment will be reused in other products, such as an ingredient for Purple Door Ice Cream.

Autumn is upon us! Try this seasonal Maple Old Fashioned recipe!

2 oz. Johnny Drum Private Stock Bourbon, Fat .25oz. Maple Syrup, a dash of Jamaican #2 Bitters, a dash of Bittercube Bolivar Bitters, Garnish: Fat orange peel

To view other recipes and product offerings, visit Bittercube.

To read more about bitters, visit The History of Bitters

For more information on Lean Manufacturing see: Lean Waste Stream by Marc Jensen, Lean Enterprise: A Synergistic Approach to Minimizing Waste by William A. Levinson and Raymond A. Rerick, and Learning to See: Value Stream Mapping to Create Value and Eliminate MUDA by Mike Rother and John Shook

Voice of the Customer – Critical to Quality Trees

Don’t Get Stumped by Broadness

Often times, employees are able to identify a service need or improvement opportunity, but do so in a way that is too broad or can’t be acted on by the team. Employees may have identified needs such as a comfortable work environment, increased competitiveness in the marketplace, or improved customer service, but what does that really mean and how can it be achieved?

In this case, having a structured approach in place with which to identify specific characteristics or requirements that are critical to quality is imperative. To achieve this, implement techniques for process improvement known as Six Sigma . Through the use of the Six Sigma technique, Voice of the Customer (VOC), you’re able to gain insight into customers’ needs and their perception of quality. One VOC tool, Critical to Quality (CTQ) Trees, aid in identifying quality measures from the customer perspective.

What Does It Do?
  • It aids in the transition from broad, Voice of the Customer (VOC) needs / vague statements to precise, actionable performance requirements
  • It identifies problems along with root causes
  • It enables employees to identify features by which customers can evaluate companies’ services and that can be used as measures for a project
  • A useful CTQ characteristic is:
    • Critical to the customer’s perception of quality
    • Specific
    • Easy to measure
How To Do It?

Identify Critical Needs

  • Ask yourself “What is critical for this service or product?”
  • Brainstorm to identify the critical need that has to be met
  • Create a CTQ Tree for each identified need

pic 1Identify Quality Drivers

  • Identify specific quality drivers that have to be present to meet the needs identified in the previous step
  • When considering each need, ask, “What would that mean?”
  • “Good Customer Service” means “Knowledge of Product”

pic 2

Identify Performance Requirements / CTQs

  •  Identify the performance requirements that must be satisfied for each quality driver
  • Keep asking “What would that mean?” until reaching the level of detail that the team’s knowledge will allow
  • “Knowledge of Product” means “Zero Calls Transferred”

pic 3

What’s the Benefit?

It’s easy to get trapped by broad concepts that are not so easily quantified, such as providing good customer service. When you branch out and translate performance in terms of units (e.g. number of calls made) time (e.g. amount of time on hold) or money (e.g. total expenses) you start to see the clearing through the trees. The Voice of Customer approach is a great way to obtain clear, desired performance requirements that promote overall company goals. In my next blog, I continue exploring the Voice of Customer, but do so using the tool of Kano Analysis. It’s sure to delight!

For more information on Voice of the Customer, or other related Six Sigma processes, the following book is recommended: Voice of the Customer: Capture and Analysis.

Without a trace…..

NYresolutionsIn earlier posts  here  and here, we talked about how social media is changing the game when it comes to consumer recalls.  I just took a peek at the FDA enforcement report in my inbox, and all I can say is that it will help motivate my January diet resolutions…

Today, let’s take a look at another key part of the recall readiness toolkit: traceability. Over on FoodDive, the Traceability playbook describes six key advantages of implementing a comprehensive, modern traceability system:

  • Operational visibility that extends into your supply chain so that you can verify quality of raw materials
  • Rapid training of a multi-lingual workforce, because modern systems eliminate the need for language skills by relying on barcode scanning
  • Providing a foundation for improving operational efficiency by making it easier to find bottlenecks and address sourced of confusion
  • Through integration with CRM and social media, a modern traceability system enables tailored responses to inbound social media complaints and concerns, so that you can get a head start on recalls and find the source of the quality issue more quickly
  • Enables you to meet growing consumer desire for non-ingredient attributes of your products, for things like non-GMO, free-range, fair trade, etc.
  • You can issue targeted (as opposed to blanket recalls) to address quality issues, because you can trace your raw materials and packaging as well as the employees and production equipment who touched a particular lot

Diligent, cross-functional process modeling, coupled with modern traceability systems, can make or break you, if you are suddenly in a recall situation. Are you ready?