Team Ownership of Lean Initiatives, Drives Sustainable Improvement

Challenge
New owners had taken on a pipe manufacturing business that had been operating successfully for 75 years. These new owners were committed to investing in Lean processes and recognised the need for Lean training and engaging human resources to realise the benefits of their investment.

The business had 200 employees and a production cycle running 24/7 in four shifts. However, staff members were simply coming to work each day, doing their shift and then going home. They did not own the processes and were not empowered to identify and implement improvements.

The business had a top-down approach. For example, only management were authorised to “pass” or “fail” non-conformances so production could grind to a halt when management were not on site. Similarly, operators were not the authorities for defining and classifying scrap and “scrap” was costing the business significantly.

Excellent Outcomes at a Glance

  • Quality: Shop floor team empowered to make quality calls and OFIT KPIs improved immediately
  • Safety: Scrap decreased by approx 25%
  • Safety: Zero LTIs for the last 12 months
  • People: Teams are leading change. Identifying issues and goals, and planning and delivering improvements

Lean Solution
Corporate Partners was retained to provide Competitive Management Training and to identify improvement initiatives at all levels of the organisation. They brought their toolbox of proven programs (5S, VWM etc) and worked with managers and team leaders to tailor the programs to suit the organisation’s specific needs.

shadow board

Team leaders were involved in designing shadow boards.

As hands-on instructors Corporate Partners chose to minimise the ‘classroom’ sessions and conducted training in the relevant space of the workplace. Rather than training instead of working, teams were training while they were working.

The Corporate Partners’ approach sees workplace teams becoming fully involved in the process and helping set KPIs, production standards and safety guides. The plan is to guide understanding and inspire thinking. Teams grow to understand not just what they are doing but why they are doing it. Everything is measured and recorded, and can be scrutinised and discussed.

Lean Results
Team leaders are actually leading changes rather than relying on management to “hold their hands” and set protocols and initiatives. They are taking charge of identifying issues and goals. They are making sure things happen and delivering their projects.

Teams have been taught how to learn and teach each other, so the improvement programs are sustainable evolving with the needs of the organisation.

Specifically, the shop floor team were given training on quality standards with clear criteria and then empowered to make on-the-spot calls on whether products should be available for sale or taken off the line. The on time and in full KPIs improved instantly.

categorising waste from pipe manufacturing

Creating unanimity on the definition of scrap led to waste reduction.

Operators were made the ultimate arbiters for defining and categorising scrap, and for deciding how it was recorded and dealt with. The operators own the system; they created it and manage it. Once everyone was on the same page regarding scrap, they were able to reduce it by roughly 25%.

Where previously management set the rules on Manual Handling Tasks, teams were given specific tasks and were videoed actually performing these task. The teams then went through all the potential safety issues and created their own safety programs. Lost Time to Injury or medical treatment has been zero for 12 months.

Employee engagement increased significantly. In 12 months the business formally logged 2842 improvement suggestions, two-thirds relating to procedures.