The Lean Manufacturing Journey: Positive cultural shift through LEAN

Challenge

The business was competing in a challenging business environment including threats from cheaper imports.  The business was also operating with a high percentage of fixed costs which impacted negatively during periods of declining revenue in a COVID-19 environment.

The program provided a platform to improve output with less labour, ie. reduce the level of fixed costs without impacting throughput.  Despite COVID-19 and declining revenue, the greater efficiencies have delivered reduced direct wages, and this has lowered the wages to revenue percentage.

Excellent Outcomes at a Glance

  • Cost: $200,000 plus in cost reduction
  • Safety: 40% reduction LTIFR
  • Quality: Assembly department reduced missing parts by 75% in finished product
  • Enviro: Reduced water usage by 200,000L/yr
  • Delivery: DIFOT increased by 50% to 80%
  • People: Staff culture survey increased from 60% to 71%

Solution

As part of the improvement program, each employee was trained in either MSS30316 Certificate III in Competitive Systems and Practices or MSS40316 Certificate IV in Competitive Systems & Practices, nationally recognised training qualifications.  The training is vital to up-skill and engage staff in best practice process