The Lean Manufacturing Journey: Positive cultural shift through LEAN
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.