TPMsystem could give extra £15k/pa
By Robert Harris
BOOSTING farm profits by driving out waste and improving output is the aim of a new initiative launched this week.
Total Profit Management will benefit all producers, regardless of system type or size, claim the companies behind the scheme.
ADAS and Keenan reckon that, by applying total quality management principles proven in other industries, farmers can reduce waste and costs by 10% and increase output value by the same amount.
Both companies suggest this could add an average of £15,000 to all UK net farm incomes, restoring many to profitability, John Allen, head of business development, told farmers weekly.
All businesses were a collection of processes which could be analysed to eliminate waste of resources, he explained.
The first step was to use financial benchmarks, like the joint ADAS/HSBC Bank Spotlight dairy figures, to compare business performance against similar farms to highlight key areas of weakness.
"We then used simplified total quality management techniques to drill down behind figures to identify real opportunities to either create value by meeting customer needs, or to simplify operations to reduce waste and cost."
There were two key questions that had to be asked, said Mr Allen. "Why do we do that, and can we do it better?"
A series of farmer meetings will introduce the concept, and further events are planned to develop it.
The series kicks off on Jun 13 at the Royal Bath and West Showground, Shepton Mallet, before moving to the Belgrace Centre, NAC, Stoneleigh (Jun 14), Hoole Hall Hotel, Chester (Jun 15) and Shepherds Inn, Rosehill, Carlisle (Jun 16).
Further details from Keenan on 024 7669 8288, or ADAS on 01902 693384.
• Full participation by farm staff.
• Teamwork between farm, supplier and customer to add value.
• Creating value by: – meeting customer needs
– producing more from the same inputs
– reducing costs by simplification.