Lean Manufacturing Empowers Staff: Productivity Up, Absenteeism Down

Challenge
This rapidly growing food processing business manufactures dressings, sauces, mayonnaises and desserts for airlines, hotels, cafes and restaurants, and for gourmet delicatessens and select supermarkets in Australia and South East Asia.

The company is continually looking to expand into new market segments and to improve production processes.

This is a highly seasonal business and during peak production in December-January additional shifts have been needed to meet demand.

Excellent Outcomes at a Glance

  • Delivery: DIFOTIS improves to 96.4%
  • Cost: Quick changeovers save $48k
  • People: 5.7% increase in output per FTE; additional shift eliminated
  • People: 17.7% reduction in absenteeism
  • Safety: Reduction in injuries saves $265k in Workers Comp premiums
Solution
The company engaged Corporate Partners to initiate Lean in the workplace. Corporate Partners introduced a suite of Lean Manufacturing tools including 5S, Value Stream Mapping, Visual Workplace Management and Mini Business Teams.

Mini Business Teams and Value Stream Mapping are vital Lean Manufacturing tools and are the cornerstone of successful business transformation. Teams are equipped with the tools and skills to develop and achieve their mini business targets. This team approach truly engages employees in the business improvement process and has everyone working together towards achieving workplace excellence.

visual-board

Mini Business Teams and Visual Workplace Management form the cornerstone for successful business transformation.

The introduction of Lean processes has improved productivity with an increase in output-per-employee of 5.7%.

absenteeism-reduced

Employees are more engaged and empowered and absenteeism has gone down by 17.7%.

Lean Manufacturing Results
The introduction of Lean Manufacturing has improved productivity with an increase in output-per-employee of 5.7%. Peak demand is now being met without an additional night shift.

Delivery in Full on Time and in Specification has improved by 2%.

The Mini Business Teams are solving problems with greater speed and contributing improvement suggestions. Employees are more engaged and empowered and absenteeism has gone down by 17.7%.

An initial focus on safety resulted in a 129% increase in reported incidents, however the increase in reporting has resulted in a reduction in lost time to injuries and the company has saved $265,000 in workers compensation premiums.

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“The benefits to our business from implementing Lean Manufacturing through Corporate Partners have been significant. For example we have increased our production efficiencies significantly and more importantly these have been sustainable. We have been able to have a safer and more productive environment through our 5S training. I would recommend Corporate Partners in a training/facilitating function.” – General Manager