Running a modern farm requires constant improvement—reducing downtime, optimizing workflow, and making better use of labor, equipment, and inputs. That’s where Lean Six Sigma can make a real impact. Though originally developed for manufacturing in the late 1900’s, these proven process-improvement tools have spread to other industries (service, financial, etc.) and today, can translate extremely well to farm operations of all sizes.
As a quick introduction, Lean Six Sigma combines Lean principles (reducing waste) and Six Sigma (reducing variation). Together, they create an overall disciplined approach to improving areas like field processes across typical planting, spraying, harvesting, and overall equipment management, but these techniques also apply to office processes, purchasing practices, cash management, and much more.
Today, in this very difficult Ag economic environment, with farmers fighting tight margins, labor shortages, rising input costs, etc., utilizing these improvement techniques is a must for maintaining any successful farming business.
The following are some key Lean Six Sigma points and tools that, when applied effectively, can make a huge difference in any farming business. The first two points help the farmer understand and utilize a proven methodology to identify areas to improve.
The DMAIC model—Define, Measure, Analyze, Improve, Control—is the foundation of Lean Six Sigma. Farmers can use this 5-step process to diagnose any problem and to help implement long-lasting solutions for continual improvement.
Identify the scope and impact of the issue.
Example: The corn profit center fell short by $100,000 this year.
Determine what data is needed to quantify the problem.
Example: Total corn yield vs county vs previous APH, moisture levels, seed/fertilizer/chemical & equipment/labor cost per acre, etc.
Interpret the data to confirm the cause.
Example: Average yield was 10% below the target; main focus of input cost is too high per unit.
Develop ideas/possible solutions; implement the easiest/most cost-effective solutions first.
Example: Improved planting timing, adjusted seeding rate, and focused on N uptake per bushel.
Set controls so improvements stick.
Example: Seed germination testing prior to planting, periodic check on planter calibration, tissue sampling throughout the season to allow in-season adjustments.
Bottom line: The DMIAC process is a simple but effective acronym to use in solving any problem with a data-driven analysis.
Lean identifies seven forms of waste, summarized in W-UPTIME, another acronym which can be applied directly to farm logistics, labor, and equipment use. All waste (and beginning to reduce that waste) can be broken into the following areas:
For example: Are trucks backed up at the elevator?
For example: Do team members lack autonomy to make routine decisions?
Note: For more on maximizing the value of your farm team, see our blog on How Does Ag Accounting Differ from Business Accounting, which highlights operational efficiencies and management accountability.
For example: Are you making unnecessary passes over the field?
For example: Are trucks routed efficiently and loaded correctly, with little if any delay?
For example: Do leftover inputs indicate over-ordering or poor planning?
For example: Could better SOPs (Standard Operating Practices) and improved training reduce wasted steps and time?
For example: Do avoidable losses occur, such as sprayer mixing errors, grain spillage or excessive equipment breakdowns?
Waste can be measured in hours, but quickly that should be turned into “dollars” so you can calculate the COW or Cost of Waste. This allows you to prioritize your efforts.
The following are six key tools utilized in an overall, comprehensive Lean Six Sigma improvement approach for any business. These six tools are particularly useful for simple but effective improvement in a farming operation.
The 5S system in Lean helps maintain organization and improve workflow efficiency in any farm workplace, such as shops, trucks, equipment sheds, and office spaces. It is a structured 5 -step process as follows:
Remove unnecessary tools and supplies.
Make tools easy to find and return (by color coding, shadow boards, etc.).
Keep spaces and equipment clean.
Create SOPs and checklists for tool usage, cleaning, and storage.
Train and motivate your team to maintain the system long-term.
Value Stream Mapping normally uses a team approach to identify/detail the “current state” of any process and then help visualize an improved “future state” workflow, by identifying inefficiencies, and then developing ideas for a better process. Once we implement these changes, after a while, this new process becomes our new “current state”, and then over time, we can do it again as we move to the next “improved future state.”
1. Define the boundaries
2. Identify value vs non-value to the customer
3. Walk through and document the current process
4. Gather data (time, cost, resources)
5. Create a “current-state” visual map
6. Analyze constraints and waste
7. Design the ideal future-state map
8. Implement improvements
9. Monitor and adjust the new process
Example: Transforming a cluttered office system or inefficient harvest workflow by mapping each step and eliminating bottlenecks. This can also be used to improve office processes, like reducing the “delivery to cash” cycle.
For more ways to track critical metrics and operational performance, see 6 Essential Financial Measures for Farm Managers to Monitor, which pairs perfectly with VSM for informed decision-making and process improvement.
Poka-Yoke prevents errors before they occur—ideal for operations/processes where processing mistakes cause significant delays or are very costly.
QCO, or Quick Changeover, focuses on reducing downtime between production tasks, particularly on tasks that recur many times throughout a normal season. These are normally done as a “team exercise” by the people performing the changeover. A quick video of the process, followed by a review in a quiet setting by all the people doing the work, is typical to develop/capture improvement opportunities.
The best and simplest way to think about QCO is picturing the difference between a kid changing a tire on an unlevel road vs a pit crew changing 4 tires in a race. Which is more efficient? Why? What did they do differently?
Kitting bundles all materials needed for a task into a single ready-to-use “kit.”
This approach reduces wasted time and ensures consistency. For broader operational insights, check out our blog on Farm Accounting and Financial Management Simplified.
This general tool focuses on farm signage/labelling that is easy to understand and leads to a more efficient workplace. Labelling on shelving/drawers, color coding of tools, simple maps of field/routing in trucks, whiteboards in the shop & office areas for group discussions, SOPs and checklists with pictures, etc., are all good examples of effective visual controls.
Also consider “progress” tracking visuals, such as “burn down” charts, which track progress on any big task. This simple but effective tool allows all employees to see progress being made (ex. planting or harvesting). Burn down charts can help “rally the troops” to continue to productively perform the job at hand and form an excellent control for management to track and inform all employees on daily and weekly progress.
Applying Lean Six Sigma principles helps farms reduce waste, save money, and improve overall efficiency. When combined with strong accounting practices and performance tracking, these tools give you a competitive edge in today’s agricultural landscape.
If you want to improve workflow, streamline operations, or strengthen your farm management practices, UnCommon Farms can help. From advisory services to hands-on training courses, we equip farm owners and managers with the tools they need to operate more efficiently. Contact us today to learn how our management, leadership, and training resources can support your operation.