Background
The poultry industry is a sector of agriculture focused on the breeding, raising, and processing of domesticated birds for their meat and eggs. The industry is an integral part of the global food system and plays a significant role in providing affordable protein sources for human consumption.
Our client is a South Asian conglomerate that has diversified into various activities such as the sale of broiler chicks, poultry feed, commercial layer eggs, broiler hatching eggs, and broiler live birds.
The client is also one of the highest sellers of broiler chicks and poultry feed in South Asia. As part of diversification into other industries, the client has also forayed into solvent extraction and the education sector.
As a result of tremendous organic growth, the client urgently needed more effective management systems (MCS) to have better visibility and control over its operations. They needed a partner that could easily understand the reality on the ground, and design and implement the most appropriate MCS to capitalise on current and emerging business opportunities.
Analysis
We were brought in to analyse the client’s various farms and support related functions such as purchasing and logistics. The purpose of the analysis was to understand how well systems were controlling and driving production processes, farm activities, and support functions, and how they could be changed to improve production performance.
Our analysis identified huge variabilities in how essentially the same processes were being managed. Practices were different from place to place, and knowledge was confined to only a few people. Essentially, it was the manager’s capabilities that were driving efficiencies instead of the system.
After establishing the need with top management, we kickstarted a 24-week project to design and implement more effective management systems.
Project Approach
We began by setting up a taskforce made up of client-side experts, and forming two Management Action Teams (MATs) to manage the various initiatives and ensure participation from all key process owners. Our consultants supported both the taskforce and MATs.
The results of various studies and testing methods (DILOs, MCS critque, as-is assessments, issue Trees, and more) gave us an idea of areas that needed improving. The results also informed the development and verification of a fit-for-purpose MCS. Multiple design and development workshops were carried out to foster ownership by the wider team.
Project Implementation
A time-bound implementation roadmap was approved to resolve any prevailing issues that might pop up in a sustainable way while establishing a long-term culture of continuous improvement. Management system elements were installed to improve production performance through KPIs and performance reviews.
Multiple training sessions were provided to the taskforce, farm supervisors and managers. We also improved the flow of information so that there was timely resolution of issues relating to farm performance. In order to improve data availability and expedite decision-making, we established new systems for efficient data capture and reporting.
Other solutions that were implemented during this 24-week project include:
- Identifying critical farm activities and developing SOPs for each activity. Regular training in the use of SOPs was provided and exams were conducted for the supervisors.
- Supervisors were trained analysing frequent problems using the ‘5 Whys’ methodology. Corrective actions were verified by managers and presented to top management. The best root cause analyses were rewarded to build a culture of continuous improvement.
- KPIs were identified to capture production performance. Dashboards and reports were circulated to managers to improve the decision-making process.
- Dashboard and KPI-based review methods were installed with time-bound action logs.
- Root cause analyses of critical issues in the farms were undertaken with corrective and preventive action tracers.
- Creating and training a business excellence team to ensure sustainability, by carrying out further improvements once our team had concluded the work.
“The way this team led us in identifying opportunities, developing systems, measuring KPIs, implementing change, and finally ensuring sustainability is commendable. At the end of the project, I felt that the mission was accomplished.”
CEO
Results
20%
Reduction in transport costs for chicks and eggs
1.06%
Reduction in brooding farm depletion
45%
Reduction in average bird weight variation in brooding farms
17.5%
Reduction in egg wastage
25%
Reduction in opening inventory
Not only did we help the client establish new MCS across all business units within the scope of the project, but it also laid the foundation for further operational excellence initiatives. More importantly, it motivated the entire team to achieve better results.
As a result, the client is now much better placed to meet the challenges of this highly competitive and dynamic market.
