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6 PLANTS OF MAJOR 2 PIECE BEVERAGE
CAN PRODUCER
Company Profile:
Aluminium Beverage Can producer. 6 Plants
Objective:
Reduce the production cost per can through reducing the cost of lubricants
by $400,000 per annum to match the international benchmark.
Outcomes:
Saving over $1,600,000 per annum in the cost of lubricants. Achieved
"Worlds Best Practice" in this area.
Motivated employees to take on more responsibilities, further training and
to be more responsive to change.
Approaches used:
Optim trained a Benchmarking team, with members from each plant, in Problem
Solving and data analysis through Optim's "New Generation Problem
Solving" process. The team was also shown how to evaluate the best
practices from multiple sites and how to determine the very best practice.
Team members implemented the new practices in their respective plants.
Optim facilitated the team until the client internalised the process using
Optim's methodology.
PROJECT - LARGE COMMERCIAL BANK
Company Profile:
Payroll Services Department of an International Bank - 28,000 employees.
The Payroll Services Department was responsible for processing salaries for
every employee each fortnight and for making many hundreds of adjustments
to salaries resulting from promotions, recruitment, etc. The staff were
highly stressed and the Department was under huge pressure to perform.
Staff turnover was at record levels. Several consultants had been employed
over time to little effect.
Objective:
To improve operational efficiency delivering accuracy and improved
lead-times.
Approach used:
Optim conducted an analysis of workflow. It quickly became apparent that a
considerable portion of most operational procedures added little or no
value to the end 'customer'. It was quickly realised that if the staff were
not to own the final recommendations little change would result.
Optim created a project team, trained them through an Optim process called
"Simple Systems for Administration", and guided the team through
the processes of analysis and questioning that underpin the techniques they
had learnt. Once the final opportunity for operational waste elimination was
recognised, the team then set about redesigning the workflow and finally
re-designating responsibilities around focused team concepts and
communicated to the rest of the staff by the team.
This team also implemented the training of their peers.
Outcomes:
The first project team quickly identified that only one of forty-four steps
in a critical procedure added any real "value" to the process. Of
the remaining forty-three steps, a few were classified as "process
enabling" and the remainder were "waste". The team was able
to reduce the procedure down to a total of eight steps, most of which could
be handled by one person. Other projects had similar outcomes.
This provided the Department a way forward to make more effective use of
people's time and to radically reduce the internal lead-time for processing
salaries and changes.
2PIECE BEVERAGE CAN PRODUCER &
THEIR MAJOR CUSTOMER
Company Profile:
Aluminium Beverage Can producer and Australia's major brewing site.
5 Groups involved in the improvement process: Can producer, End producer,
Customer Service, Filling site(Brewer) and their Quality Control
department.
Objective:
To strengthen the co-operation between the company and a major customer. To
develop a mechanism for solving the problems that occur between the 2 companies
(Many long term operational problems existed between these operations).
Outcomes:
A "no blame" working relationship has been developed which has
enabled chronic problems between the 2 companies to be solved.
Joint problem solving meetings held and facilitated by Optim.
Approaches used:
Problem solving teams, made up of members from both companies, were trained
and facilitated by Optim to jointly look at ways of reducing costs and
improving productivity. They focused on being driven by facts and data
rather than opinions by using the following the "New Generation
Problem Solving" process.
PROJECT - INTERNATIONAL TEA BLENDER
& PACKER
Company Profile:
Beverage manufacturer that blends, packages and markets tea . 80 Employees.
Objective:
The Directors recognised that the company must change to stay in business
and maintain their customer base.
An initial change needed was to increase the hygiene level of the factory
and then to motivate the employees.
Outcomes:
Optim created the need for change in all employees.
The appearance of whole factory transformed by being cleared of all
unnecessary items and machinery and being cleaned.
The employees designed and implemented new procedures and visual controls
in order to maintain the new level of hygiene.
Employees were enthusiastic and motivated as a result and are now far more
willing to embrace change in the work place.
Approaches used:
Optim identified through an Employee Climate survey the gaps in employee
and management's perception of "how" the workplace should be. The
survey revealed to the employees that the work environment was at a much
lower standard than what they wanted and was a catalyst for their
commitment.
Optim's 5S process was utilised and the factory ceased production to enable
the employees to be trained., then transform the workplace with enthusiasm.
This was achieved within 2 days.
Further improvements and visual controls are now constantly being
implemented as an ongoing process which Optim facilitates.
PROJECT - INTERNATIONAL
MANUFACTURER OF LAUNDRY PRODUCTS
Company Profile:
Manufacturer of laundry products and consumer goods. An international
company with 17 plants worldwide. This site was the 2nd highest cost
producer in the group and considered, historically, to be a poor performer.
Objective:
Aim is to become the lowest cost producer with the highest productivity.
Outcomes:
Moved from 2nd highest (16th) to 2nd lowest cost producer in the group in
less than twelve months.
Developed a motivated and very flexible workforce.
Dramatic improvement in productivity with:
Line 1- capacity increased from 400 cases/day to 1250 cases/day with no
capital outlay.
Line 2 - labour cost reduced by 67% and line capacity increased by 34%.
Line availability increased from 80% to 98%.
Line 3 - reduced product variability by 50 % and saved 12.5 tons of
material annually. Warehouse - analysed the supplier delivery patterns to
find massive peaks and troughs in the delivery volume through a week. They
modified the ordering process and worked with suppliers to evenly spread
the delivery times during the days and week.
Approaches used:
All employees, including management, were trained in the dynamics of
working together and how to use a uniform problem solving methodology that
leads to decisions and actions being based on facts and data.
This was achieved through the Optim "New Generation Problem
Solving" process.
The whole plant was involved in a 2 day process to implement the 5S process
and visual control systems resulting in a clean and orderly workplace.
Ongoing facilitation by Optim is maintaining the enthusiasm and motivation
of the people through further training and review of current projects.
Optim guidance is showing the company's managers how to lead the Continuous
Improvement process.
PROJECT - INTERNATIONAL
PHARMACEUTICAL MANUFACTURER
Company Profile:
Australian operations of a US
manufacturer of prescription and retail drugs.
Objectives:
To improve machine and process efficiencies.
Approach used:
Optim has trained several groups in techniques to measure
material/information flow and machine performance. We provided the company
with a participative approach to productivity improvement through our Smart
Changeovers process.
Project teams were established with specific terms of reference and defined
authorities to make change in their work places.
Outcomes:
The results have been exceptional:
Project 1. Operators and maintenance crews worked together to simplify a
changeover process so that only operators need to be involved. Team wrote
its own procedures. Maintenance staff then improved the manufacturing
process making it more reliable and user friendly.
Project 2. 18 hours set up time reduced to 3 hours (83% reduction). A
productivity improvement of 249% is now setting a world-wide
"benchmark" for production and packaging of this drug.
INTERNATIONAL CONSUMER GOODS
MANUFACTURER
Company Profile:
A North American Confectionery and Biscuit Manufacturer.
This company is considered to be a leader in both manufacturing areas and
also in participative management.
Objectives:
To improve overall productivity and to compliment existing initiatives
already in place.
Approach used:
As this company was well advanced in realising an empowered and cooperative
workforce Optim's Smart Changeovers Process and New Generation Problem
Solving were utilised to allow rapid implementation of action plans.
Outcomes:
In the Confectionery Division:
An extra 200 tonnes capacity created per annum this adds $200,000 per annum
in profit for this plant.
Changeover times reduced from 53 minutes per set-up to 7 minutes.
Waste and scrap reduced to well below previous "World's Best
Practice" levels.
Changeovers on Packaging machines reduced to seconds, allowing critical
machinery to continue running without stoppages. Previous times created
about 20 minutes downtime per product changeover.
In the Biscuit Division:
Critical changeovers reduced by over 75% and in some instances totally
eliminated.
All of the above was achieved during the workshop training, i.e. in less
than 48 hours of the process being introduced.
This company now has over 20 facilitators trained in Optim's processes.
NATIONAL FOOD MANUFACTURER and
DISTRIBUTOR
Company Profile:
Large food producing company that has operations in all states and
overseas.
The company manufactures and distributes its products in Australia and exports overseas.
Objectives:
To improve overall operational efficiency of this division of the company.
Outcomes:
Plant productivity improved by over 10% within 4 weeks. Lead-time was
reduced from making to delivery to the customer from 8-12 weeks to 2 weeks
through increasing plant flexibility and direct delivery to customers.
State warehousing was scaled down dramatically, some warehouses closed. The
operation has been relocated into a purpose built factory, designed with
OPTIM input. Two operations have now been able to be combined into one in
the new location.
Approach used:
Optim initially conducted a series of diagnostics to discover the real needs
of the organisation and opportunities. These included:
Customer survey - Found that customers wanted shorter lead-times, fresher
product and improved communication from manufacturing.
Manufacturing Diagnostic - Showed a lack of lean manufacturing thinking and
approaches. Factory very traditional in its layout, management and
manufacturing philosophies i.e. monthly runs, maximising batch sizes, long
changeover times etc. Enormous waste and time introduced through the multi
warehousing system.
Value Added Productivity Analysis - Demonstrated that the overall
productivity of the operation had been in decline over the past 4 years and
that unless changes were made the operation would not be viable in 2 years
time. Traditional approaches in running the business used in the past would
not keep the organisation profitable in the future.
Work Environment Scale Employee Survey - This measures 10 key parameters,
which impact on the employees' performance at work, and compares these
parameters to what the employees regard as ideal. It was found that the
employees were generally happy with their jobs, their colleagues and the
environment. However they felt restricted and inhibited by the autocratic
supervision. The supervision felt unsupported and had no direction from
their management.
OPTIM's recommendations from the diagnostics were acted on. Changes were
put in place to help the supervision, OPTIM ran Smart Changeovers to
improve the flexibility and OPTIM helped in the design of a new factory. A
new factory has now been built incorporating a simple, efficient and
flexible layout.
INDUSTRIAL SACK MANUFACTURING
COMPANY
Company Profile:
Major Australian sack manufacturer that supplies the powered milk,
chemical, agricultural and cement industries.
Objective:
Reduce the lead-time to process the paperwork and enter a customer's order
into the manufacturing system.
Also to simplify the system and reduce the incidence of mistakes occurring
and the need for multiple checking.
Outcomes:
The original system had 25-30 steps and averaged 14 days turnaround time.
The new system averaged 15 steps with 2-4 days turnaround time. The new
system has far less duplication, double handling and checking.
Approaches used:
Optim trained all the administration staff, through the Optim 'Simple
Systems for Administration' workshop, in how to document the wastes in
systems and how to eliminate them. The workshop showed the employees how to
identify improvement opportunities in their systems. The simplicity of the
concepts combined with ownership of the process motivated the people to
apply the process to their own systems to make dramatic improvements. Optim
facilitated the post workshop team meetings to keep the group focussed.
TOP OF PAGE
___________________________________________________________________________
Optim Pty. Ltd
Suite 3,
5-7 Chandler Rd
Boronia VIC 3155
Tel: +61 3 97620043 Fax: +61 3 97620071
Email. info@optim.com.au
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