TAKT Case Studies

 

Your inspiration for productivity improvement will be greatly enhanced from the study of real life examples. Here you can read about a number of our client's practical experiences and the results obtained. From their experiences you may be able to draw parallels to your own situation.

For "commercial in confidence" reasons, the names of our client companies have not been published only their industry sector. Should you however require any additional information about any of the cases, please contact the Coach responsible for the project.

Electronics Company - A Study in Lean

Background: The client, an electronics company, wanted to introduce Lean in order to remain competitive in today's market.

Electronics ChipThe objectives set were:

Initially the company was in need of an awareness of Lean and the results, when once applied, it is capable of achieving. This awareness was delivered to all company staff, including the directors, sales staff, office admin and shop floor. This heightened awareness was to be the foundation to identifying wastes and targeting improvements aimed at the companies' stated objectives. We then started to develop a structure that would empower the staff to identify and manage the continuous improvement opportunities themselves, whilst allowing the management team to focus on planning the larger improvement tasks.

This empowerment enabled the group to eradicate a number of small but irritating problems that had been simmering for a long time; this early success had the added effect of ensuring buy in from staff as they started to experience first hand the results of their efforts. This system was managed by the departments themselves and the activities and results made highly visible using whiteboards situated within the departments, these whiteboards were also used as the driver for weekly improvement meetings.

Challenge: Maintain a more consistent stock level and reduce Lead time to less than 30 days

One of the largest issues faced by the company was the existing raw material and consumable inventory levels the company was holding. In some instances they had far too much stock, with all the extra costs and problems that entails, yet in other areas they were consistently suffering from shortages which delayed production and effected lead times and delivery dates.

To solve this they began a 5S program to identify what they actually had on site, what they felt they could do without, and what they needed more of, combining this with improving the layout and locations of the storage areas and the visibility of products. Minimum stock levels were agreed based on lead times from suppliers combined with the commonality of stock (profiles and consumables) to product, this gave an indication of which profiles were really just "specials" and which profiles were likely to be used for future orders.

With this information the company was able to confidently predict make to order lead times for products with common profiles and negotiate lead times for "specials" in advance based on knowledge of supplier lead times for those particular profiles. These improvements were then supported by a Kanban re-ordering process that was set up to ensure stock outs no longer occurred.

Results:

Challenge: Double productivity per person and reduce the number of internal quality issues

When investigating quality issues and rework, a number of different issues were impacting the company. Firstly there were instances of a perceived quality issue from the customer; this was largely due to misunderstandings and differences between terms used by customers, sales staff and shop floor staff which resulted in delays in production and occasionally products not meeting customer expectations on delivery.

To address these issues the meaning of the wording and terms used on the works orders, (this is ultimately the description used to build the product), were agreed by everyone and standardised to ensure that everyone within the company was "speaking the same language". The terminology and knowledge of the customer was also crucial to the success of this process and definition of these meanings are now fully explained to each customer as part of the sales/ordering process to ensure the information gained from the customer reflects the type of product they expect to receive and therefore obtain maximum customer satisfaction.

An internal quality system has also been set up to reduce the number of, and cost of, rework. Due to the product specifications and the nature of the manufacturing process, damage can easily occur to the appearance of the product, this was identified as the number one cause of rework within the plant. The initial activity centered on fact finding to identify where the damage was actually occurring - supplier, manufacture or storage.

The differing cost implications of these would also determine the need for improvement. We found that initially a lot of the damage seen was actually from the raw material suppliers, the reality of the situation is that the suppliers are not, and can not be, subject to the same stringent QC requirements as our company, however by identifying these faults before manufacturing had begun we could significantly reduce the cost implications of these raw material defects by not using the damaged section of the profile, this will generally not have an adverse effect on production at only a minimum cost to the business.

Analysis was done on the opportunity for defects to occur within the manufacturing process and this has been tied into the findings from the internal quality system to determine the focus for mistake proofing process to help prevent this damage from occurring. As a result the amount of handling required in the process has been reduced and mistake proofing ideas have been sought and implemented at key stages of the process to reduce the number of occurrences of profile damage during manufacture and storage.

Results:

Further Information Please contact the TAKT Australia coach responsible for this Lean journey, Mike Littler, on (07) 3369 4424 for additional information pertaining to this case study.

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Graphic House - Certificate IV in Competitive Manufacturing

Graphic House offers a unique combination of print, graphic design and advertising services, all under one roof.

Graphic House Case StudyGraphic House was established in 1988 and bought by owner and operator, Danny Stockow in 1998. With many years combined industry experience and local knowledge, in both print and design, Graphic House offers advice that ensures efficient, economical and high quality solutions.

Graphic House boasts modern cutting edge pre-press and printing equipment and fully trained staff. Graphic House stands behind its products 100%.

Our design studio employs industry-experienced artists, who are committed to high quality and creative design concepts.

We also employ fully qualified, professional print staff, working from our purpose built factory.

Why do our clients choose us?

Our company motto is "if our clients are not happy, then we are not happy!".

Our product range includes, but is not limited to: -

Certificate IV in Competitive Manufacturing:

Graphic House was given the opportunity to undertake the TAKT Australia programme for Certificate IV Competitive Manufacturing.

After a number of initial meetings and discussion with the TAKT Australia team, a total of ten (10) subjects were selected that best represented the challenges we were currently facing within the business:

Five (5) Graphic House staff commenced the program in October 2009 with the understanding that this training would provide a team solution to cutting waste and improving productivity using proven improvement methodologies. The delivery of training was undertaken in-house, allowing for specific workplace scenarios and training and as a result was embed into our workplace and allowed us to sustain a competitive manufacturing culture.

Our first day's training was a lot of fun... we learnt about Lean manufacturing and what it meant to work in a Lean environment. This was a real eye opener for all staff - as we were able to see how badly a factory can operate versus how well a factory can operate - all based on visual information, facts and data.

The staff agreed after this training that our mindsets needed to alter drastically before we could implement change. The TAKT Australia coach was able to encourage and show us what we needed to do to change our mindset throughout the program.

The group respected the fact that the employee training wasn't about being told what to do and how to do things, more so, we were given scenarios and left to our own devices to discuss, communicate and work out solutions, with the occasional question or comment thrown in by the coach, which would usually result in further discussion and understanding of our limited approach to a problem (opportunity), sometimes the obvious was hiding until pointed out to us.

This lead to a great team building environment and allowed for open communication and discussion between the staff, which has definitely assisted with team briefs and communications now and in the future when new staff are inducted into our Lean workplace.

Structured systems were implemented over the next few months of training, allowing for the future monitoring of ideas, prioritising, implementing, responsibility and monitoring outcomes based on real data collection.

Other systems were introduced allowing for rapid improvement events such as waste removal, and in turn visual processes to be implemented to ensure waste is kept to a minimum and work areas to become more productive and organised.

Administration systems were introduced allowing for a better communication (visual) flow and understanding of what is needed and when and by whom throughout the whole workplace, which was proven to be one of the biggest time wasting areas prior to training.

As a group, we feel that we are now in a position to be able to, not only, maintain the changes that we have implemented, but also to monitor and update on a weekly basis, therefore the business will not stagnate, in fact the business, with all of its staff as its driving force, can only improve from week to week, resulting in improved quality, delivery, costs, safety and employee happiness, not to mention very happy customers.

Summary of Outcomes:

All staff were involved at all operational levels and results were and still are being measured.

Our results are based on improving quality, delivery, reducing costs and mistakes, therefore providing customer and staff satisfaction.

We believe the real result of the TAKT Australia program was the ability to measure our business improvements, set up procedures and processes that are visual and are mistake free, and has provided us with a extremely valuable system to undertake staff meetings, that are concise, structured, measurable and ultimately moving the business as a whole forward on a continued basis with all staff aware of goals and achievements, and the company's desire to improve performance, safety, and happiness.

Staff interaction has changed in a positive light, as the business previously was divided into factory staff and design staff and administration staff, and this mindset has changed to being all on one team, striving for the same goals and understanding why and why not things have and have not occurred. Making for a much happier and successful workplace.

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Lean Fabrication – Kador Engineering

KadorKador Engineering is a privately owned Australian engineering firm founded in 1972. Since then they have established a history of manufacture of quality engineered products for Australia's largest resource and energy companies including BHP Billiton, Santos, Nabalco, Xstrata and Rio Tinto. Kador also manufactures components and products for Terex Lifting, Bucyrus Australia, Hastings Deering (Caterpillar), Komatsu Australia, Hitachi and the Queensland Government.

TruckKador operates from three manufacturing plants in Brisbane and employs more than 150 qualified tradespeople with diverse skills. The Company's head office and central operations are at 14 Boron Street, Sumner Park. The Company has two other Brisbane manufacturing facilities - in Sherwood and Carole Park.

Prior to commencing the Certificate IV in Competitive Manufacturing training program the TAKT Australia team met with the Directors and Senior Management of Kador Engineering to discuss the organisations operational and training requirements as well as their goals for the program.

The program is a long term commitment by Kador to further the implementation of Lean Manufacturing into the business, and involved approximately forty employees across all three manufacturing sites.

Through ongoing consultation the goals were established ‘To optimise efficiency whilst maintaining a vigilant outlook for fundamental health and safety requirements’. Customised training programs were developed for each of the five teams each comprising a cross section of personnel, including Directors, Administration, Leading Hands and Workshop Personnel employed across their three sites.

In addition, a steering committee was formed comprising Kador Senior Management and the TAKT Australia Lead Coach to ensure organisational support & direction for the program and the ongoing monitoring of the program to ensure original goals and company expectations were met.

In October 2009 Kador embarked on a 14 month Certificate IV in Competitive Manufacturing training program. The various topics for the program included;

Crane

During the initial stages of the program team members were introduced to SMART goal setting and the key fundamentals of ‘Lean Manufacturing’ including Waste Identification and Elimination and the subsequent impact on productivity, efficiency, costs, lead time and their customers.

“Practical approach to training works well for the mix of students in the program” Manufacturing Engineer
“Putting some of the lean methods to practice and seeing them work” Workshop Supervisor

WeldingThe introduction of regular, structured Lean activities through the” Team Improvement Boards” empowered team members to work through their issues and apply problem solving methods to identify root causes and develop appropriate solutions that has facilitated obvious improvements in key areas. The Plan-Do-Check-Act cycle ensuring that the improvements were sustained and a positive culture of continuous improvement fostered within the organisation.

“Open discussion regarding faults / issues that should be dealt with on the workshop floor” QA Officer

“Gives insight into the many problems that can be solved at shopfloor level” Workshop Supervisor – Cranes

The teams worked hard at implementing 5S to specific workplace focus areas with great effect and the introduction of a formal 5S auditing and scoring system to sustain the positive change. The heavy fabrication division’s work areas are better organised and having completed Value Stream Mapping there is an increased focus on planning and management of their fabrication projects. An example being the 70kl water tanks that achieved a 25% reduction in fabrication hours representing a significant reduction in costs and lead time and provided additional internal capacity for an increase in new orders.

Heavy Fabrication“The training was conducted in relation to ongoing changes on the shop floor. It gave me control in change implementation” Boiler Maker - Heavy Fabrication

The program continued in the area of Mistake Proofing with teams implementing additional Mistake Proofing, methods, processes and devices in a number of fabrication processes with a reduction of quality issues, rework and customer concerns.

“Program allows for immediate implementation of course work on the shop floor” Boiler Maker

The competitive manufacturing training teams reviewed a number of the manual handling issues highlighted in an external safety consultant InterSafe report, and have revised various work practises to eliminate hazards. For example at the Sherwood workshop, repositioning of a jib crane so that a piece weighting over 70kg is more easily moved by crane instead of pushed on a trolley, thus eliminating several hazards and improving the flow of work.

Competitive Manufacturing“TAKT successfully bonded the individuals into fully functioning teams which all produced extensive recommendations and modifications to the production processes across Kador. These improvements included reduced man hours, reduction in rework, improved quality control and reduction in product lead times. Work in progress levels also reduced allowing for greater throughput.

As a company, Kador believes this training has been invaluable both to the corporate entity and to the individuals involved. It would provide a platform to further continuous improvement in the years ahead. We thoroughly recommend TAKT Australia services to any company wishing to provide similar training to their employees.”

Philip Smith
Director Kador
Engineering (Aust) Pty Ltd

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Operational Excellence – Hyne Mouldings

Hyne LogoHyne is Australia's largest and most successful privately owned timber company. Hyne is a leader in technology implementation, product development and quality control with a world class manufacturing capacity and environmental standards that underpin their unwavering commitment to sustainably grown plantation timber production and supply in Australia.

MachineryHyne is a leading Australian manufacturer and distributor of engineered, structural and decorative softwood products for the building, construction and packaging industries both in Australia and abroad. Hyne has approximately 850 employees in 20 locations in eastern Australia.

Virginia is the home of Hyne Mouldings and is based in the northern suburbs of Brisbane in Queensland. Using finger jointed Araucaria Clears from Melawondi, this state-of-the- art moulding operation produces numerous, high quality profiles and dressed boards for decorative use in domestic and commercial building.

Prior to commencing the Certificate IV in Competitive Manufacturing training program for the Hyne Mouldings division the TAKT Australia team meet with site senior management to discuss the division’s operational and training requirements along with their goals for the program.

MachineryA customised twelve month training program was developed for two teams to minimise the impact to production schedules and shift changes. The Certificate IV in Competitive Manufacturing training program brought team members together from functional areas of the site including management, administration, production, logistics and machinists/maintenance to work together on issues within the organisation to improve the efficiency of the site.

The various topics for the program included;

"The site benefited from the total program and the involvement and input of all team members" - Manager

"The program was professionally explained and presented" – Production Operator

The Team Board was utilised by both teams and provided and excellent method to monitor site key performance indicators and identify various issues to be addressed in a collaborative and transparent manner. The teams then applied effective problem solving methods adopting the ‘Plan-Do-Check-Act cycle to develop appropriate solutions which the teams managed as site improvement projects.

"Being taught that you have to look deeper into issues to find the real cause" – Foreman

"Looking at problems and coming up with possible solutions" – Forklift Operator

EmployeeIn the area of Mistake Proofing the teams worked on their systems and processes to improve defect identification of timber feed stock with the introduction of product samples, photographs and associated documentation combined with increased training and awareness. The teams also changed their internal process and removed defective timber at the Band Saw process prior to the Moulder in-feed area further improving efficiency and eliminating double handling of product.

The site built on their existing housekeeping processes with the introduction of 5S into targeted work areas. The teams worked through and applied the individual elements of 1. Sort, 2. Set in Order, 3. Shine, 4. Standardise and 5. Sustain which improved the organisation, layout, cleanliness and safety of the work areas. A program to further implement 5S across the site for continued positive outcomes is underway.

"The 5S program was great it made us assess our work environment to work better for you" – Admin Officer

"5S and the different ways to approach the different issues and situations that arise" - Machinist

During the program a number of improvementinitiatives were undertaken by the teams including;

  1. A new racking system for bundled packs – providing easier access, less damage to timber and improved efficiency resulting in a previous 8 hour task can now be completed in 1.5 hours
  2. Introduction of a Pack Breaker at the Band Saw area – this now allows timber packs and individual planks to be separated mechanically rather than manually with a sledge hammer reducing safety issues and product damage and improved the efficiency of the operation.
  3. Modified the internal process of wrapping treated packs - this process has been completed by the external contractor that treats the finished product this has reduced safety concerns, material costs and double handling of product and increased the efficiency of the process.
  4. A number of administrative improvements were also implemented including;
    1. Introduction of balance sheets for door jamb processing
    2. Reconciliation of run sheets to ensure accurate picking of orders for despatch
    3. Handover notebooks for forklift operators

Employees"The use of practical projects and putting methods to work" – Production Operator

"The program could be related to my workplace environment" – Forklift Operator

During the later stages of the training program the team members were able to take a proactive approach to a new internal reporting system for the Hyne organisation which was to be implemented at their Virginia site. The team were split into smaller working groups to address specific data collection requirements aligned to the organisation’s Key Performance Indicators for the new of the new reporting system including;

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