The LEAN Donut Shop! Lean Documentary | Episode 1

i'm daniel crawford and this is the making of the lean donut shop [Music] what you're about to witness is the beginning of a grand experiment an experiment concerning lean manufacturing and donuts and you might be then thinking well what the heck does lean manufacturing have to do with donuts of all things and the answer is a lot or at least the theory behind this experiment is that it is a lot you see lean's been around for a long time for many decades but not enough time for it to be simple and clear and understood it tends to be rather complicated and technical and just boring well in this documentary series you have the opportunity to join us as we try and figure out this thing called lean which is more than just a set of technical tools and instead has to do with growing people and developing them and making that fire kick on in their eyes when they come to work because of their opportunity to use their brains and not just their hands that's what we're after and that's what you'll get to see not that we have all the answers but that we're figuring it out as we go so i'm inviting you to join me on this journey in the making of the lean donut shop the donut theory is in fact a real donut business and it was started by none other than my wife lara crawford it started in her kitchen and i wasn't even a piece of the puzzle yet she thought i was crazy i thought she was crazy and then it just blew up tell us the story yeah so i was pregnant with our third baby and i think it was equal parts needing something to do with my time that focused my my thoughts and energy on something other than my pregnancy and also wanting really amazing gluten-free donuts because i have celiac disease there you have it celiac disease and can you find a good gluten-free donut around town uh you can now with the donut theory but you could not before so what's the the quick story of what got us from the starting point to where we are today and where are we today yeah so i would say there's two and i'm not just saying this there's really two pieces one is i created a really awesome formula for donuts and two the second piece would be that my husband knows lean and he knew how to help implement systems and processes in order to make us be able to do what i was doing on a small scale to be able to do that on very large scale so we started just in our kitchen friends and neighbors it blew up before we knew it we were selling donuts from the trunk of our car and soon after that we were in this 1947 pink ford half ton classic vehicle which is a joy to drive and we've been in a commercial kitchen a shared commercial kitchen and our soon to enter into our very own storefront so there's already been a lot of evolution and change within the business starting from just the um the owner founder bringing on me bringing on additional employees a lot of progression and soon to be the storefront so it's an exciting journey can lean work for a startup let alone a more established business well we're gonna find out i would say can a startup work without lean true that's what i would ask so on today's episode we're gonna be in the donut kitchen i'm going to take you to a saturday morning bright and early with the donut crew where for the first time ever i'm teaching them about the concept of value and waste and they've never heard of it before they've been around me and we've done some things but i've never started to open their eyes to this entire new world so i'm gonna bring you with me to the donut kitchen where they discover some of the foundational elements of lean welcome to the donut kitchen today we're going to be teaching the difference between value and waste let's see it is 5 49 we've been here about 19 minutes and only until a few seconds ago did we create something of value all right value is anything the customer is willing to pay for the customer will pay for this because this is going to become a donut right now we're observing transformation avery's grabbing some ingredient and she's transforming the products that's the product so that's value right there just added value a little bit more there's a little bit more value but not everything is value in fact most of what we do is wasteful and that's no criticism of the people but it's the process so this may sound silly but this is what's going on right now we got waste waste waste waste place now there's value value value that's transformation right there value here we go now we're back to waste waste waste waste loading up the pot waste avery's not heard me do this before so it's just maybe this is stressful but waist waist we're partnering work harder waist waist waist now we're waiting well that's creating value right the mixer is working but now avery i'm used to saying man and machine for other reasons i'll get into it elsewhere but um my my woman might get out avery she is um she's not creating value yet the machine's working and adding some value but she is trying to get her next ingredient prepped it might be necessary to open up the container but there's no transformation yet of the donut dough so right now it's waste we're waiting that's some more waste and again avery's a rock star she could she it's better times on this mixer than almost anybody um but the process she is in is imperfect nothing's ever perfect all of our processes have loads of waste this is what we're looking at any process you can typically see only 10 percent of value-adding time if this is a measure of time and then 90 percent non-value-adding aka waste this is the stuff too many people stress out about this and we need faster machines we need faster people we need faster this and that but this is only 10 yeah maybe you can make it faster and maybe you can you know speed up the process but why wouldn't you go after this 90 percent of waste get rid of the waste and then this stuff can flow without anybody breaking a sweat or working any harder so actually what just happened is uh one of the girls needed a scoop for the cornmeal and uh it wasn't there for we we moved it yesterday and i don't know where it is so i'm searching now i'm looking here on the shelf somewhere here i'm told it's on the shelf i'm actually not seeing it here so i gotta go ask i'm not creating any value right now this is all waste as i'm searching for a tool something as simple as a tool savannah you said it's on the shelf did you mean the inventory shelf or in the truck it might be on the track okay let's go straight the truck waste waste i know i'm making waste right now this is wasteful it's not good i'm not creating anything of value but i have to find a tool we misplaced a tool and that's one of the reasons why we do something called 5s because of silly things like this where is the scoop okay i found it oh my gosh that took way too long i spent all that time looking for this darn scoop and it's wasteful and this stuff happens all the time and i'm i haven't created anything of value so far but i've spent minutes of my life trying to find this darn scoop and i found it so now we got to clean in we can use it the truth is is that my goal here is not to work these girls to the bone because that doesn't work for them they'll burn out they'll quit it's not good for the business they'll make mistakes people get hurt it's just stupid don't do that you don't work your machines with a bone you don't work your people to the bone they're the most valuable thing in this business because they bring their brains in the building so what we're going after here is not to just work harder and just sweat real hard and cut corners and do things like that but rather if you can learn to see what's trading value and that 90 or so of everything else is waste then you can get rid of that waste and it makes avery's job her life easier more pleasant and the business succeeds as well we can deliver a product to customers at lower cost even if we need to because we're doing the hard work now to use our brains not just our hands and get rid of some waste let's be more specific there are eight forms of waste there's actually seven original classic wastes and then an eighth one that was added later on none of these create value and we'll go into it transportation the movement of stuff inventory just things sitting around on the shelf motion the movement of people waiting anything waiting people machines material over processing putting uh more effort into things doing steps multiple times over production doing something before it's needed or in a greater quantity than it's needed defects getting something wrong making a bad quality products a bad donut and then skills not properly using the genius the brains of your people it's so terrible it has to be on video it's all over production wasted donuts what'd you say it's so sad and isn't that what you said too yesterday avery why does it make you feel sad um because i wish i was eating all those different because we make all these donuts and then we don't get to sell them and we don't get to give them yeah we work hard in here we make a good yeah we make a good product and then it doesn't get sold and it feels sad and it's not good it's over production it's the worst of every waste maddie what's the waste my scale messing up yeah what's it doing to you it's not tearing so i have to say longer time of course now it's going to so does that mean that uh you have to weigh it multiple times yes so rather than getting a weight the first time you have to try two three four times yeah yeah that's weight that's waste it takes longer yeah and she knows it's waste just intuitively just hearing the concept we would call that the waste of over processing because she's processing multiple times to try and get a weight and it's not happening the first time and that's a waste it should be the first time okay i just came back and i saw savannah and she's standing around savannah we gotta have a talk girl because you're not working why aren't you working harder uh waiting on some death you're waiting why are you waiting uh waiting on them to become rings so i can throw them in the front well isn't it your fault that you're waiting oh yeah no it's not your fault maddie it's your fault i know it's your fault that she's waiting around we had a flavor change it takes time to clean the other flavor and put the noodles you gotta work harder maddie i mean it like you really gotta work harder or we're gonna have some problems oh okay she's smiling because she knows she knows i'm just kidding it's not savannah's fault and it's not maddie's fault it's the process's fault this process sucks okay it takes a lot of time we're working towards getting rid of it but until we get rid of it we have some challenges we got to do some quick changeovers we got to keep the supply of dough coming through and if we run out of dough then the fryer goes down she's standing around she doesn't have anything to do she's bored she's not engaged on the job and it just sucks coming to the lean donut shop so we got to not critique these awesome employees but look at these processes and say hey this this could be better we need to make that better so that the process runs better the major point here is you got to focus on the process and not the people they're just doing their job and they're doing as best as they can but the process is where all of the problems are she's not waiting around because it's her fault she's waiting around because the process has some issues that need to be improved some wastes that have to be dealt with and if we can use our brains and get rid of those wastes then uh her work's more enjoyable and the process at large is much more productive and efficient okay we're going to look at motion down because everything counts so the time it takes to put on a lid the fact that she has to bend underneath to grab something under the counter and actually that's not what she needed or it's not ready so now she's walking over there yep now she got what she needed that was all motion walking is always motion walking doesn't transform the donut more motion she's repositioning the flower motion is very related to safety and ergonomics if there's too much motion or the wrong kinds of motion it may not be safe you know in any weighing process there might also be over processing because if the number is not quite right or with intolerance she'll have to adjust so she's trying to hit a target and the difficulty of this process of weighing and measuring causes her to pull some out this is over processing now there's motion involved with changing over the donuts she's got to grab each one out that's taking up her time just moving around those donuts didn't actually change from the fryer to uh the cooling rack they were in the basket above now they're just cooling on the cooling rack there was no change no transformation it was just simply her moving and i guess the donuts transporting us very short distance and now she was just grabbing more donuts from here she's reaching putting here grabbing another one putting me here there's no transformation happening here she's just relocating the donuts she has to move to get the donuts in the fryer but does it have to take that much motion now she's transporting donuts over there she just moves them from point a to point b and if i speed this up you'll see her hands just moving all over the place because there's just a lot of inherent motion in this process now that those ones have dripped enough she's putting them over here but it's more motion and more movement of product they're not actually changing and now she's gonna transport the sheet onto the sheet rack there's more motion involved too so there's all kinds of motion going through this process all right this is transportation we're moving stuff there's some transportation [Music] it's waste it's transportation she's moving inventory all right there's a certain point of view in a process like this that these donut holes are actually defects which is kind of sad because they're kind of cute right but they're defective because we were supposed to get a ring and we got this hole it's scrap all of this is scrap that has to be recycled in a sense and that conceptually is over processing we created defects then we have to process them some more so that we can get a workable product now in our case it's actually a problem to be over processing too much because the more she handles the dough the tougher the dough gets and the worse the donuts are when you chew them in your mouth so we actually can't do this too much okay let's talk about inventory the waste of inventory what is that well here's one example this inventory is just hanging out it's just waiting it's not being used it's here there is cash locked up into every one of these bags i think it's like 12 or something like that sitting inside this bag i mean not literally but it costs money to put it here and that money is not being used for other things if i had a thousand of these then that's a ton of money that the lean donut shop does not have at its disposal so reducing inventory is helpful to uh invest your money where you want it to but there's other reasons that inventory is bad now this is inventory too here's some inventory right here that just came out of the fryer here's some more inventory inside the fryer that's cooking here's some inventory maddie is creating more inventory she's got one right now avery has some inventory here in the bucket there's inventory everywhere how does that affect the process okay so this is basically our production process i mean it's missing a few steps but basically we got a mixer and it produces dough and then that dough is made into rings those rings go in a basket the basket goes in the fryer it's fried and then the rings are pulled out they're not glazed yet then they get put in the glaze and then they're glazed then they go on a car and then they go on the truck all at every point along the way there is inventory we call it work in process work in process inventory of dough then of rings then in the basket it's in the fryer all these places if you have lots of inventory then there are problems there one of the primary problems is that all the inventory takes time meaning if you have a mountain of dough then that dough is going to be sitting here for a lot more time before it gets made into rings if you have a mountain of rings it's going to be hanging out more time before it is put in a basket so the more inventory you have the more time that inventory is hanging out in your production system it affects the total time it takes from start to finish for a single donut to get produced just think about it if i spent three days just making dough then three days have gone by and i still don't have a completed doughnut okay so if the inventory is big it takes more time for a single donut to make its way through the entire process but if the inventory is small then it goes blazing fast the lead time that's what this is called the time from start to finish is short when the inventory is low when the inventory is big your lead times are also big and the more time you have your inventory your products the more opportunity there is for things to go wrong for you to have quality problems for things to get lost for you to be searching for you to need more space just all that stuff the more inventory you have the more problems you will have so you actually want to reduce it even if at first thought it it makes you feel like you have less safety less buffer one of the key ideas about over production is called just in time or sometimes you hear it called jit what it means is to have everything delivered just in time meaning just the right quantity at just the right time if we make dough before it's needed we can't do anything with it they it just hangs out in inventory and it's waiting on the shelf until we get to it and then actually there's quality problems and other things that we've discovered too when we over produce so you want just the right quantity and just the right time because that's what the customer wants you'll notice here that maddie is not rolling out all of the dough why are you not rolling out all the dough right now because it'll take too much time and i can hit some now for the fryer so the fryer doesn't stop wait wait hold on a second i asked about you and you're talking to me about the fryer yeah why are you talking to me about the fryer if i'm not fast enough i'll slow the whole process down oh cause you're thinking about your customer huh yeah yeah the fryer over here is their customer and there's one lonely donut over here in the basket and it needs eight buddies before it can get thrown in the fryer so maddie here is saying no i'm not gonna waste my time rolling out all the rest of that dough because that'd be over over production that would be rolling out enough dough for like two dozen donuts when the fryer only needs eight right now so she rolled out just enough that she can get straight to making the donuts because she's thinking about this girl who's gonna need those donuts any moment all three of these girls are team members but they're also customers of each other maddie is avery's customer avery is making dough for maddie maddy's making rings for savannah and savannah is finishing the rings for the customer so everybody is a customer they're all customers of each other and the goal is to serve our customers just in time to not give them more than they need because they don't need it and it's just a waste but to give them just what they need at just the right time it's challenging don't get me wrong but if you do that you will eliminate tons of waste because you're actually serving the customer and giving them only what they want that's what saves you from doing what they don't want which is waste what we used to do a long time ago is we would make the glaze and we made the glaze at the very front of the production day but there were problems with that when we did the glaze first we didn't get started on the dough until after and that meant that the fryer didn't get started until i don't know 45 50 minutes into the day which was a lot of lost opportunity the truth is we don't need glaze right away glaze doesn't get put on the donut until the very end but we were doing it first what we actually needed was dough so we changed things up now what we do is we do one batch of dough and then we quickly change over to glaze even though it takes more work and then go back to making dough and we've found a way to make it work even though it takes a little bit of effort it might be easier to do the glaze first because then we just get it out of the way and and all but it creates other problems all right so i haven't really talked about this one skills what is the waste of skills skills goes by a few different names tim wood tim woods is one way of remembering that eight wastes but there's other acronyms and other descriptions then the title doesn't matter the function is what matters and what skills is trying to describe is the brain power of every person working in the business maddie doesn't have just hands and feet she's got a brain and too many too many businesses hire people for their hands but they don't hire them for their brains so the waste of skills has to do with not using the creativity the talent the skills the genius of every person working in the organization that's the greatest waste of all to waste maddie's life or to waste savannah's life because she's waiting or she's fighting problems and she's waking up every day and she's frustrated that she has to work at the lean donut shop why do i have to go to work today that's the sign the symptom of employees that aren't using this that aren't valued that aren't respected it's the the worst of the wastes if i take the time to develop people to treat them well to train them to challenge them then the people can transform the processes removing the waste that then creates better products that then delight customers even better but if i don't treat them well then nobody's going to care about process improvement nobody's going to care about waste nobody's going to enjoy coming to work and so it starts with people you got to treat them right and you got to invest in them develop them and use the brains of every person use your brain and you can go anywhere but if you just use these things your hands then you'll never tap into waste elimination you'll never value standards you'll never really get anywhere you'll just be kind of status quo and clocking in clocking out that's not what i want you've now seen in this first episode the discovery of value and waste in the donut kitchen but that's not all there's a major problem going on in the business and the problem is actually me i'm in the way i'm the bottleneck because once upon a time it was just my wife all alone i wasn't even part of the picture yet and then it was the two of us and then it was employees in addition to that well the business has grown we're entering into a storefront very shortly and i am the limiting factor unless i can learn to create processes and to train people and remove myself from everything going through me so i've got to take the stuff in my head and get it out of my head um into standards and into people so that the business can grow and i'm not stressed out i'm not lacking sleep but rather we can continue this journey so that's the challenge set before me and the business right now and actually the challenge of every leader in every organization you've got to continually work towards getting out of the way so that other people and the organization itself can continue to grow so it's a never-ending journey well in the next episode we're going to talk about a very significant tool to support overcoming this challenge you know the first tool introduced in this episode was value and waste but that's not the full picture if you don't understand the role of standardization you're not going to get very far you'll get rid of some waste and then it'll just come right back into your lap within a little bit of time unless you can standardize and you can't even train people you can't even engage them in the practice of continuous improvement unless you've got a tool standards for everybody to play to and to improve so that's what you're going to witness next on episode 2 of the making of the lean donut shop

Channel: Lean Smarts

Views: 14,062

Keywords: lean manufacturing, lean documentary, lean manufacturing documentary, lean restaurant, lean training, lean manufacturing training, timwood, 7 wastes, 8 wastes, value and waste, value, lean donut shop, Daniel Crawford

Id: Lz3Rcv3kFsw

Length: 27min 32sec (1652 seconds)

Published: Tue Aug 31 2021