Competitive Manufacturing In New Zealand
-
Upload
nirmala-last -
Category
Business
-
view
947 -
download
3
description
Transcript of Competitive Manufacturing In New Zealand
2007
Competitive Manufacturing in
New Zealand Ian Boyd, CEO FITEC
2007
What is Competitive Manufacturing ?
• Basically a process tool for improving efficiency / productivity to benefit bottom line
• Can happen in a number of ways: decreasing waste / increasing productivity / increasing quality / increasing sales value
• Comes under a number of ‘labels’: lean manufacturing / TPM / Kaizen / 20 keys / TQM / The Toyota Way
• Has a number of intangible benefits: staff empowerment / staff retention / common goals / meaningful workplace
• Needs to be sustained to bring lasting benefit – that is where training is critical
• Role of Skills Councils / Industry Training Organisations
2007
Presentation Overview
• Mandate of MSA is to give New Zealand examples
• Case studies focussing on outcomes for three New Zealand companies– Juken New Zealand Northland Mill, Wood Manufacturing– Kapiti Fine Foods, Palmerston North, Dairy Food Manufacture– NCA Normanby, Taranaki, Stainless Steel Fabrication
• Sharing some observations and principles of success
• Bring some real people feedback directly from the New Zealand Industry (Video)
• This in no solo effort – thanks to all contributors
2007
Juken New Zealand – Situation
• One of three Japanese owned timber processing plants in New Zealand, less than 10 yrs old
• A combined veneer peeling, sawmilling and wood processing site with around 60 employees
• Site not performing well– Low productivity– Frequent breakdowns– High staff turnover– Low ownership of processes– High accident rates– Low staff morale and ownership of processes
2007
Juken New Zealand – Action Taken
APPROACH TAKEN• Mandate set by site leadership
team• Followed structured process• Cross functional and work
area based teams formed• Support by CM mentors and
management• Baseline measures used as
measure of improvement• Project plan and deadlines
agreed
IMPROVEMENT PROJECTS• Site clean up• Unsafe and inefficient
equipment removed / replaced• Maintenance schedules
accessible and displayed• Bottlenecks addressed
2007
Juken New Zealand - Benefits
• Increased capacity through removal of bottlenecks (investment)– Sawmill 60 %– Veneer line 16 %
• Increased overall productivity– Sawmill 300 %– Veneer line 73%
• LTI down ten fold• Key success factors
– Site management led– Structured process over 2 years– 93% of staff involved in structured training and CM activities
• All in one team (maintenance, production, management)
2007
Kapiti Fine Foods – Situation
• Part of the large Fonterra brands division, based in the lower North Island, over 20 years old
• A combined dairy product processing site, (ice cream manufacture, blow moulding, and milk processing, 65 staff)
• Highly successful site, winning awards for quality products and innovative business practices
• Chose CM framework in 2006 to build the business by – Delivering step changes– Sustained performance improvement
2007Kapiti Fine Foods – Action Taken
APPROACH TAKEN• Improvement strategy
developed and agreed • Business focus throughout
organisation• Support through NZITO CM
experts• Targets set for individual
business units on worthwhile projects
• Rigorously reviewing performance
• Formal training for all staff to level 2 / 4 in CM
IMPROVEMENT PROJECTS• Line efficiency for Ice Cream
Team• Tackling change over time for
blow moulding team• Improving quality and
efficiency in key areas for milk processing team
2007
Kapiti Fine Foods - Benefits • Ice Cream Unit: 20% increase in line efficiency • Blow Moulding Unit: 40% reduction in change over time • Milk Team: 20% improvement in meeting cut-off times and
reducing jam-ups• Staff morale and contribution of ideas increased • Success created desire for more success• Key success factors:
- Led from top
- Clear focus on projects
- Ongoing visible performance control
2007
NDA Normanby – Situation
• Established over 110 years ago, workshops in New Zealand, Australia and China, core business is stainless steel fabrication
• Manufacturing plant for food and chemical industries – from small liquid holding tanks to huge storage complexes.
• Taranaki site unable to meet requirements of their client on a four year contract to supply farm holding tanks on time.
• Serious bottleneck due to working in a batch manufacturing mode, unhappy staff.
• Site visit by management diploma students resulted in creation of a high level value stream map and some initial improvement ideas
2007NDA Normanby – Action Taken
APPROACH TAKEN• Outside mentor completed
operations review • Major wastes identified in
batch manufacturing process • Getting buy-in from everyone
through up front training• Identify champions willing and
capable to drive change• Clear project plan, targets and
deadline to achieve targets
IMPROVEMENT PROJECTS• Farm holdings tank assembly
changes: – Change workflow from
batch manufacturing to one piece flow
– Create 8 new work areas (shifting plant)
– Tidy up assembly area
2007
NDA Normanby - Benefits
• Production output increased by 100%
• Lead time to customer reduced by 50%
• Labour component reduced by average 26%, reducing labour costs by 20%
• Tremendous morale boost
• Better place to work (clean, safe, orderly)
• Keys to success– Outside mentor – Thorough analysis up front– Clearly defined projects– Focused training
2007
Common Principles
2007Common Principles
Tidy Up
Colour
Code
2007
Common Principles
1. Do not continue to cut down trees to sharpen the axe
2. Take time to sharpen the axe properly
3. Monitor the performance before and after the sharpening
4. Keep it sharp
2007
Common Principles
1. Leadership from the Top
2. Capable mentor / coach
3. Empower and Upskill
4. Share the Success
Let the People Talk
……………. Video