South Georgia Pecan Success Story

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Managing for Daily Improvement Reduces Turnover and Increases Productivity

Company Profile: South Georgia Pecan Company began in 1913 as a small family-run pecan shelling business in Valdosta, Georgia (then known as Pearlman Shelling). Today, the company has grown to include multiple tree nut processing plants in Georgia and El Paso, Texas, including the largest pecan processing facility in the world. South Georgia Pecan employs nearly 250 people and serves both retail and wholesale customers.

Group of manufacturers meet at a communication board.

Situation

In 2021, Nathan Smith joined the company as a plant manager. The company had recently experienced a period of rapid growth and innovation, but was suffering from high turnover and challenges in communication. Looking for solutions, Smith attended a Manufacturing Growth Meeting hosted by the Georgia Manufacturing Extension Partnership (GaMEP) at Georgia Tech on the topic, “Becoming an Employer of Choice.”  He liked the real-world insights and practical tips provided during the presentation and reached out to Hank Hobbs, GaMEP South Georgia region manager, and set up a discovery meeting.

Solution

Hobbs connected Smith with Adam Hayes, GaMEP strategy, leadership, and technology project manager, who worked with the company to complete an operational excellence assessment.

Employees in the shipping department utilize an MDI board to share information and track metrics.

“Based on my previous experience working with consultants, I was expecting the recommendations from the assessment would be complicated, expensive, and high-tech, but the solution he recommended was so simple, I was a little skeptical at first,” said Smith.

Hayes recommended a system of improving communication between departments and upper management called, Managing for Daily Improvement (MDI). MDI involves identifying key metrics for each department and creating a whiteboard that tracks those metrics along with other pieces of information critical to company success. Each day these boards are incorporated into a Gemba walk practice. During the walk, each department leader presents the latest metrics, problems that need solving, and other important information directly to the management team and the leaders of other departments.

Hayes worked with GaMEP project managers, Vance Merritt and Brad Wood to implement the system throughout the plant.

“They were a great team, each one bringing different experience and insight,” said Smith. They spent a lot of time talking with the people who work in each department and formed a rapport with them. Their hands-on approach really helped our team work through the process step-by-step and build meaningful boards that they could take pride in.”

One year later, the company was thrilled with the effectiveness of the program. At first, some team members were worried about finding the time to do the walk each day, but it has helped solve many challenges and improve communication so much, that it has freed up time previously spent in other meetings.

The board owners love having the ability to communicate directly not just with leadership, but also with other departments. It has led to an increased sense of ownership and purpose for employees by showcasing how every department contributes to the overall success of the company. By eliminating the frustrations caused by miscommunications, the company culture has improved and turnover has been significantly reduced.

Over the next year, the company plans to use the information collected from the boards to start implementing additional lean and process improvement initiatives.

Results

By working with GaMEP to implement MDI, South Georgia Pecan has:

  • Reduced turnover by 50% due to improved communication and company culture, as well as other measures taken by the company including increasing pay, adding new shifts, and improving job structure and development paths.
  • Seen a 20% improvement in productivity in the packaging department by allowing front-line leaders to set their own goals and metrics for success.
  • Lowered the number of overtime hours worked, decreasing burnout and improving employee well-being.
  • Cut the number of safety incidents in half, reducing costs associated with workers’ compensation insurance premiums and payouts.
  • Decreased customer complaints by 50%.
  • Achieved $500,000 in cost savings by reducing waste and re-work.

Testimonial

“Our work with GaMEP has made an incredible impact on our overall team performance. We’ve seen massive efficiency improvements and increased accountability throughout the plant. MDI not only encourages our team to meet and exceed their goals, but it also helps everyone feel a sense of achievement and pride in their work.”

–   Nathan Smith, Plant Manager, South Georgia Pecan