Marel Manufacturing System Drives Speed and Quality ...

Marel Manufacturing System
Drives Speed and Quality
Throughout its Global Operations

The QRM Center is a university-industry partnership dedicated to improving manufacturing competitiveness
through research and implementation of lead time reduction principles.

Marel Creates Customized
Manufacturing Plan
Blending QRM and Lean

by Kathleen Watson history, culture and manufacturing Company Profile
How does a multinational practices. Equal in size to what Founded 1983
Marel had become, Stork introduced Headquarters: Iceland
organization made up of 4,000 even greater diversity into the parent Presence in 30 countries
employees of different cultures company’s operations and culture. 17 manufacturing plants
who speak different languages and
perform different functions at sites With the acquisition of Stork, worldwide
in 30 countries develop a dominant, Marel’s international profile now 4,000 employees
enterprisewide, unifying strategy includes, in addition to multiple
that is understood and embraced by sales offices and its Iceland Products and Services
all? headquarters, 17 manufacturing Design and manufacture of
sites in Iceland and the United
Marel, which designs and States, the Netherlands, Brazil, single piece of equipment
manufactures highly customized China, Singapore, the UK, Spain, to entire system
food-processing equipment, faced Denmark, Norway and Slovakia. Replacement Parts
that challenge after nearly three
decades of expanding through The global economic crisis of Markets Served
acquisitions. It purchased Stork 2008–09 led to changes in Marel’s Processors of
Food Systems in 2008, a firm with top management. Aligning the
U.S. roots dating to the 1850s that sales function to achieve one poultry, fish, meat
had its own blend of acquisitions, consistent image, one identity, one
“voice” to the customer emerged Awards:
Fred Vijverstra, as a primary goal. “Customers AGRAme Award 2013:
Global Manufacturing Director saw us as a conglomeration of
different companies,” says Global Best New Poultry Product
Manufacturing Director Fred for Gulf Market
Vijverstra. Winter VIV Europe 2014
Innovation Award
A parallel goal was to effectively
capitalize on synergies within and www.marel.com
among Marel’s various facilities.
Each had developed its own unique integrate the conglomerate’s
operational process improvements, strengths through the design,
but there had never been a implementation and oversight of
structured way for those to be a new manufacturing strategy that
shared. would help meld Marel’s disparate
cultures and processes. He brought
Netherlands-based Vijverstra, a together an equal number of
20-year Marel veteran who holds a representatives from Marel and
degree in mechanical engineering, Stork; they agreed that the focus had
was charged with helping to to change from the organization’s

differences to a new vision that Another might want Marel to
recognized the organization’s design and manufacture
similarities. a complete food-
processing system
It took until 2010 to formulate that integrates
and formalize what was to become multiple machines
the Marel Manufacturing System, customized to
or MMS, and until 2011 to be ready perform a series
to introduce and roll out the new of sequential steps
approach to its 17 manufacturing from cleaning,
facilities. to deboning,

Varied customer base to sectioning,
means varied customer needs to grinding, to
and equipment weighing, to
packaging and
labeling.
Examining Marel’s customer
base and order history made clear
that because of the company’s Marel also
high-mix, low-volume production, produces
attempting to capitalize on complex stand- This illustration encompasses all key elements of MMS,
economies of scale wouldn’t make alone machines including humorous depictions of the food products its
sense. that can perform equipment is designed to process: fish, pork, poultry and beef.

Although some food-processing a variety of functions. For example, elevating the importance of speed
equipment has fairly standard Marel designed a “floating factory” in all operations would give Marel
characteristics, most is highly for seagoing vessels that cleans, a unique identity and competitive
customized. One machine, for strategy, and it would provide its
example, might simply sanitize and debones, and forms fish into
section poultry or remove bones portions of a prescribed weight — employees with a unifying shared
from meat. Other equipment might all accomplished with a singular vision and goal.

piece of equipment that has an The focus on speed, along with
extremely compact footprint. cellular manufacturing — both key

“Speed is the common denominator for success components of Quick Response
Manufacturing (QRM) — addressed
in today’s world, and it’s something everyone can the reality of Marel’s high-mix, low-
understand. The power of time has become the center volume product characteristics and
led Marel to draw heavily on QRM
of all decision-making; it comes before all other for its new global master plan.
considerations — even cost.”
— Fred Vijverstra New MMS focuses on speed,
a key QRM tenet

perform more-precise operations: Speed identified as The holistic approach that now
laser-slicing of meat to deli-thin common denominator unifies all of Marel’s locations is
specifications, for example, or known as the Marel Manufacturing
creating fish, chicken or beef Marel was already a leader System, or MMS. Its foundation
portions of an exact weight and in its field; however, the global is continuous improvement, its
shape. leadership group working on the pillars are speed and quality, and
unifying effort identified speed as its overriding goal is to ensure that
One Marel customer might need the most important and powerful Marel will always be its customers’
a piece of equipment that constitutes aspect differentiating how Marel supplier of choice.
just one phase of overall processing. operates. Members agreed that

The unwavering pursuit of continuous improvement, one- Arason and Vijverstra have
increasing speed in all operations piece flow, and responsiveness. introduced MMS around the
provides Marel employees at every Philosophies and methods used to globe. They remark on how highly
location with a common goal create a foundation for the MMS are autonomous the Marel culture
and a common metric. Speed, a QRM, Lean, Six Sigma and TOC, is — and how challenging it can
QRM tenet expressed as lead time the theory of constraints.” be to convince people, especially
in mature locations with longtime
“MMS is based on core fundamental principles such procedures in place, that there will
as speed, a team-based environment, continuous be benefits in transitioning from
improvement, one-piece flow, and responsiveness. existing traditional manufacturing
Philosophies and methods used to create a methods to a more QRM-based
approach.
foundation for the MMS are QRM, Lean, Six Sigma
and TOC, the theory of constraints.” Adding to implementation
— Pètur Arason challenges, not all Marel sites
conduct the same scope of
reduction, is measured not only in “To achieve different results, operations. Some include sales,
production, but also in engineering you have to do something different,” service and full manufacturing
and design, order entry, materials Arason stresses. His 12 years of (purchasing, parts production
procurement, shipping, and all working with Lean and continuous and assembly), some have only
support functions. improvement in general — eight manufacturing, and some have
of those at Marel — have provided combinations of functions. Most
“Speed is the common a solid foundation for nurturing still are what Arason and Vijverstra
denominator for success in today’s innovation, a core value for the call “traditionally organized.”
world, and it’s something everyone international food-processor. Lean practices are used in only a
can understand,” Vijverstra handful of plants, and few have
says. “The power of time has
become the center of all decision-
making; it comes before all other
considerations — even cost. But
in the end, the focus on speed will
improve all other parameters.”

Diverse sites, cultures, This white board depiction of a U-shaped cell layout at the Nitra facility shows the
operating practices challenge current machines being assembled there and the number of employees needed for
MMS implementation each stage of operations. The cell was designed to accommodate assembly of four
different product families. Some small machines require only three stages of the cell,
Iceland-based Global while bigger machines use all five stages. An extra staging area in the middle of the
Manufacturing Strategy Manager cell creates space to set aside a machine that has delays. A rack in that area holds
Pètur Arason, who has worked parts that are pulled from another cell or the warehouse.
alongside Vijverstra, notes that
operational staples incorporated
in MMS come from “the
knowledge residing in 17 different
manufacturing sites that were
merged under one vision and
strategy. MMS is based on core
fundamental principles such as
speed, a team-based environment,

incorporated a cellular structure, a When explaining the advantages Pètur Arason,
key component of QRM. of creating multiple cells that Global Manufacturing Strategy Manager
operate independently, yet often
QRM and Lean are comple- require duplicating equipment, help demonstrate how to apply
mentary. Cellular manufacturing Arason says, “People think it’s a MMS and what it could mean to
— a QRM concept — boosts manu- crazy idea because it will cost so Marel locations around the world.
facturing speed, and Lean dictates much.” He found his case study in Nitra,
having on hand only the number Slovakia, where an existing Marel
and size of tools needed. In counterpoint, he explains that operation that was producing ovens,
there can be economies. “Our sites standard machines and conveyors
Vijverstra and Arason also always need laser cutters,” he says. had expanded by renting space in
realize — and accept — that not all “If you buy a smaller one for a cell a separate building. The expansion
sites will interpret or apply MMS to provide a custom solution for a created an opportunity not only
principles in the same way. Each select product group, you likely will to rethink existing operations, but
site is being allowed to experiment, be able to buy three for the price also to design, from the ground
keeping what works from existing of a larger one that would have to up, a layout that more closely
ways of doing things and adding perform a much broader range reflected the foundation of cellular
new elements, all under the of tasks or serve a whole range of manufacturing that had been
umbrella of MMS and with the products. They key is to view the successful elsewhere.
overarching goal of enhancing speed purchase not in terms of numbers of
on every front. machines, but in terms of the overall Vijverstra seized the
investment and of the benefits those opportunity. “I wanted to see in
Cells go beyond teams multiple purchases will provide.” practice what I had envisioned,”
The cellular approach brings he says. Because he was overseeing
Nitra facility takes the the expansion, he had a high level
together an autonomous team that implementation lead of input related to the changes that
completes a sequence of operations would occur.
in a defined area. Cross-training A year after the 2011 MMS
fosters smooth operations and rollout, which was described as What he calls “old thinking”
reliable output, as team members “mandatory,” facility management at Nitra would have dictated
master multiple skills, enabling teams were required to submit plans employees in one building operating
them to fill in where help is needed detailing how they were going to a group of machines that performed
laser-cutting, bending and welding
“If you buy a smaller laser cutter for a cell to provide a
custom solution for a select product group, you likely
will be able to buy three for the price of a larger one
that would have to perform a much broader range of
tasks or serve a whole range of products. They key is

to view the purchase in terms of the benefits those
multiple purchases will provide.”
—Pètur Arason

to keep things flowing or when initially implement MMS as well as
someone is absent. Cells can be how broader adoption of it would
designed for office tasks as well continue.
as for the shop floor, or office
functions can be combined with Vijverstra knew that a
manufacturing in a common cell. successful pilot project would

— all QRM principles — the Nitra
operation achieved its 10-week
lead time goal within 18 months of
implementation.

Marel’s Netherlands Boxmeer
plant had been supplying Nitra with
multiple parts needed to produce
ovens. As Nitra was implementing
and finding success with MMS
internally, the Boxmeer operations
started to become the bottleneck.

Activities in the overhead-conveyor cell at the Boxmeer plant include picking of So Boxmeer began merging
parts, assembly and packaging. Smaller parts are stored along each side, and large principles from QRM and Lean.
parts are delivered via forklift truck. The cell actually is made up of two U-shaped QRM’s focus on speed, the concept
cells; corner wheels are assembled on the left, and frames are assembled on the of cells, and manufacturing critical-
right. Packed end products occupy the center. path time (MCT) combined with
Lean’s 5S and visual management
to produce parts, and then sending engineering. All resources needed to cut in half the lead time for
those parts to the second building to produce a particular product parts production. Time required to
for assembly. Using principles of were secured by cell members, who process materials being received at
MMS, he recommended that Nitra also assumed ownership of each the plant was reduced from three
create two facilities or “competence function. days to one day, and a cell created
centers.” The original building was to produce overhead conveyor parts
designated to produce ovens, and Boxmeer facility follows achieved a lead-time reduction of 10
the rental was designated to produce Nitra’s lead days; parts that used to take 15 days
standard machines and conveyors. to produce now take just five days.
The speed-related goal for Nitra
The new cellular-influenced operations was to reduce lead times “Boxmeer employees used
floor plan required relocating some on two oven models from 12 weeks QRM to keep lead-time reduction
equipment as well as investing in for one and 16 weeks for the other in their sights and to be continually
additional laser cutters, press brakes, to just 10 weeks for each. Employees measuring it, and they used Lean
bead-blasting machines, cranes and used value-stream mapping to tools where applicable to reduce lead
forklifts, to name a few. Duplicating measure and then reduce wait time times,” Vijverstra says, clarifying
this basic equipment made it between each step of the process. that they use Lean tools only when
possible for each competence center They also analyzed equipment size, applicable, as there are a number of
to focus on a particular product and function and placement, developing Lean practices that don’t apply to a
to serve four end-product cells in plans to make better use of shop- low-volume, high-mix environment.
one facility and three in the other. floor space.
Gainesville makes
Each competence center also By educating personnel, creating Quick Response Office Cell
had its own support functions: new shop-floor layouts, investing its first step
procurement, warehousing, in more equipment, outsourcing
planning, production control, some steps and finding local In the U.S., Marel’s plant in
management, and manufacturing suppliers for select purchased items Gainesville, Ga., which makes
equipment for processing poultry,
leveraged QRM principles and
methods as part of its MMS
implementations in office
operations.

The time from receiving an much “wait time,” the idle time they truly own and control the
order to releasing it for production between steps. Discussions of how entire process.
at Gainesville often reached — or to redesign the order-receipt and
exceeded — six weeks. Tracking -creation process included input Volunteers and recruited staff
and analysis revealed too many from students affiliated with the members from sales engineering,
hand-offs between departments and QRM Center. The recommendation: product engineering and electrical
customers. Sales, customer service, Create a Quick Response Office engineering made up the cell.
sales engineering, engineering and Cell, or Q-ROC, that would handle Because Marel employees know
manufacturing all were involved, orders for relatively standard that they gain value by expanding
each contributing in its own way to machinery — equipment that had their knowledge and experience,
extending order-processing time. few if any custom features. the cross-training opportunity
that came with participating in
And as is often the case with A lesson along the way a cell attracted plenty of willing
custom products, numerous reinforced the importance of the participants.
customer-initiated specification QRM tenet of narrowing a new cell’s
changes trickled in after orders had goals to a specific and defined FTMS The cell launched in 2013, and
been placed, adding to delays. — Focused Target Market Segment to date, there has been improvement
— for which cell members can take toward achieving a 70 percent
Marel modified the standard full responsibility. It’s unfair to hold overall reduction in the engineering
QRM definition of MCT — people responsible for results unless order-processing time and a 50
Manufacturing Critical-path Time
— to cover “the longest average MMS in Action
time for a machine type to go from
receipt of the purchase order until it Boxmeer Achievements
is released to manufacturing.” (The • Reduced lead time by 65% for a key product, from 14 days to 5
standard definition covers customer • Reduced picking time by 80%, from 10 hrs to 2
creation of order to delivery of • Increased throughput over 70% for a key product without capital
the first piece of that order to the
customer.) investments

Gainesville staff conducted two Nitra Achievements
forms of tagging to help measure • Reduced lead time 25% after creating U-shaped cells; after 2
MCT: 1) order tagging, which
recorded the date and time each years, achieved 65% reduction, from 30 days to 11
step was completed, and 2) resource • Increased inventory turns from 5 to 12 over 2 years
tagging, which tracked activities • Reduced cost an average of 5% for multiple products after
performed and the time spent
on each. Tagging revealed which creating U-shaped
operations were absorbing the most • Reduced lead times by suppliers of conveyor motors has yielded
resources.
annual cost saving of 1.5M EUR
Staff interviews and historical
analysis of orders provided more Gardabaer Achievements
data. Consolidating and analyzing • Reduced lead times by 30% in high-volume standard products by
the information helped narrow
the focus to engineering and sales implementing flow
engineering as sources of the most • Increased inventory turns from 5 to 9 over 2 years
significant delays.
Des Moines Achievements
In QRM terms, there was too • Reduced shop floor travel time by 90% after creating dedicated
little “touch time,” when something
was being worked on, and too machine cell
• Reduced lead time from 15 days to 4, also as result of dedicated

machine cell
• Saved investment funds of over $100,000 USD by implementing

cellular approach and investing in a used machine

percent reduction in the time to Of course, knowledge alone An employee assembles a machine
process engineering change requests won’t accomplish goals; employees on the shop floor. A nearby computer
related to new orders. at each facility need to interpret enables access to ERP and PLM
concepts for application in their systems, and a white board displays
Lessons learned guide the future own operations and processes. To key performance indicators (KPIs),
Marel has learned that constant help make that happen, Marel often planning for cell operations, and
brings in outside experts as change elements of Lean’s 5S pillars. All control
re-evaluation leads to continuous agents. “Most times, employees are tasks at this facility are handled on the
improvement, whether in the office, like flowers that need water. When shop floor.
on the shop floor or in the training someone helps them understand
room. the reason for the change and how MMS provides a shared strategy
it will work, they blossom,” Arason and a framework for achieving our
The biggest challenge to seeing says. common goal of speed, of taking
MMS spread throughout Marel has time out of our operations.”
been training. “It’s good to have a “In some cases, progress was
vision,” Arason says, “but how do slow not because of people on the
you transfer the knowledge in an shop floor, but because there were
efficient way? How do you train managers who were dragging their
people to become active problem- feet,” Arason explains. “They felt
solvers?” threatened and were afraid of losing
their power. ‘What will happen
Marel has invested in when we set this process free?’ they
presentations and animated videos, wondered.”
all with the goal of reaching
approximately 4,000 employees Instituting MMS across Marel
around the globe with the basics of does not mean that all sites function
the Marel Manufacturing System alike. “No one will do it exactly
and its emphasis on speed. the same,” says Vijverstra, “but we
need to have some boundaries.

Center for Quick QCenter for
Response Manufacturing (QRM)
uick
Established in 1993, the Center for Quick Response
Manufacturing at the University of Wisconsin-Madison is a Response
partnership between industry, faculty and students, dedicated Manufacturing
to the developement and implementation of lead time
reduction principles. University of Wisconsin-Madison

For more than two decades, the QRM Center has helped over 3160 Engineering Centers Building
200 companies of varying sizes from a wide array of industries 1550 Engineering Drive
reduce lead times in all aspects of their operations to become Madison, Wis. 53706
more competetive in the global marketplace. The Center can
point to a respectable track record, with several member EMAIL [email protected]
companies realizing lead time reductions exceeding 80%, cost PHONE 608-262-4709
reductions of up to 30%, and on-time delivery improvements WEB www.qrmcenter.org
to over 99%.

For more information, check www.qrmcenter.org, join our
QRM LinkedIn group or contact us directly at 608-262-4709.