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2007 Competitive Manufacturing in New Zealand Ian Boyd, CEO FITEC

Competitive Manufacturing In New Zealand

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Page 1: Competitive Manufacturing In New Zealand

2007

Competitive Manufacturing in

New Zealand Ian Boyd, CEO FITEC

Page 2: Competitive Manufacturing In New Zealand

2007

What is Competitive Manufacturing ?

• Basically a process tool for improving efficiency / productivity to benefit bottom line

• Can happen in a number of ways: decreasing waste / increasing productivity / increasing quality / increasing sales value

• Comes under a number of ‘labels’: lean manufacturing / TPM / Kaizen / 20 keys / TQM / The Toyota Way

• Has a number of intangible benefits: staff empowerment / staff retention / common goals / meaningful workplace

• Needs to be sustained to bring lasting benefit – that is where training is critical

• Role of Skills Councils / Industry Training Organisations

Page 3: Competitive Manufacturing In New Zealand

2007

Presentation Overview

• Mandate of MSA is to give New Zealand examples

• Case studies focussing on outcomes for three New Zealand companies– Juken New Zealand Northland Mill, Wood Manufacturing– Kapiti Fine Foods, Palmerston North, Dairy Food Manufacture– NCA Normanby, Taranaki, Stainless Steel Fabrication

• Sharing some observations and principles of success

• Bring some real people feedback directly from the New Zealand Industry (Video)

• This in no solo effort – thanks to all contributors

Page 4: Competitive Manufacturing In New Zealand

2007

Juken New Zealand – Situation

• One of three Japanese owned timber processing plants in New Zealand, less than 10 yrs old

• A combined veneer peeling, sawmilling and wood processing site with around 60 employees

• Site not performing well– Low productivity– Frequent breakdowns– High staff turnover– Low ownership of processes– High accident rates– Low staff morale and ownership of processes

Page 5: Competitive Manufacturing In New Zealand

2007

Juken New Zealand – Action Taken

APPROACH TAKEN• Mandate set by site leadership

team• Followed structured process• Cross functional and work

area based teams formed• Support by CM mentors and

management• Baseline measures used as

measure of improvement• Project plan and deadlines

agreed

IMPROVEMENT PROJECTS• Site clean up• Unsafe and inefficient

equipment removed / replaced• Maintenance schedules

accessible and displayed• Bottlenecks addressed

Page 6: Competitive Manufacturing In New Zealand

2007

Juken New Zealand - Benefits

• Increased capacity through removal of bottlenecks (investment)– Sawmill 60 %– Veneer line 16 %

• Increased overall productivity– Sawmill 300 %– Veneer line 73%

• LTI down ten fold• Key success factors

– Site management led– Structured process over 2 years– 93% of staff involved in structured training and CM activities

• All in one team (maintenance, production, management)

Page 7: Competitive Manufacturing In New Zealand

2007

Kapiti Fine Foods – Situation

• Part of the large Fonterra brands division, based in the lower North Island, over 20 years old

• A combined dairy product processing site, (ice cream manufacture, blow moulding, and milk processing, 65 staff)

• Highly successful site, winning awards for quality products and innovative business practices

• Chose CM framework in 2006 to build the business by – Delivering step changes– Sustained performance improvement

Page 8: Competitive Manufacturing In New Zealand

2007Kapiti Fine Foods – Action Taken

APPROACH TAKEN• Improvement strategy

developed and agreed • Business focus throughout

organisation• Support through NZITO CM

experts• Targets set for individual

business units on worthwhile projects

• Rigorously reviewing performance

• Formal training for all staff to level 2 / 4 in CM

IMPROVEMENT PROJECTS• Line efficiency for Ice Cream

Team• Tackling change over time for

blow moulding team• Improving quality and

efficiency in key areas for milk processing team

Page 9: Competitive Manufacturing In New Zealand

2007

Kapiti Fine Foods - Benefits • Ice Cream Unit: 20% increase in line efficiency • Blow Moulding Unit: 40% reduction in change over time • Milk Team: 20% improvement in meeting cut-off times and

reducing jam-ups• Staff morale and contribution of ideas increased • Success created desire for more success• Key success factors:

- Led from top

- Clear focus on projects

- Ongoing visible performance control

Page 10: Competitive Manufacturing In New Zealand

2007

NDA Normanby – Situation

• Established over 110 years ago, workshops in New Zealand, Australia and China, core business is stainless steel fabrication

• Manufacturing plant for food and chemical industries – from small liquid holding tanks to huge storage complexes.

• Taranaki site unable to meet requirements of their client on a four year contract to supply farm holding tanks on time.

• Serious bottleneck due to working in a batch manufacturing mode, unhappy staff.

• Site visit by management diploma students resulted in creation of a high level value stream map and some initial improvement ideas

Page 11: Competitive Manufacturing In New Zealand

2007NDA Normanby – Action Taken

APPROACH TAKEN• Outside mentor completed

operations review • Major wastes identified in

batch manufacturing process • Getting buy-in from everyone

through up front training• Identify champions willing and

capable to drive change• Clear project plan, targets and

deadline to achieve targets

IMPROVEMENT PROJECTS• Farm holdings tank assembly

changes: – Change workflow from

batch manufacturing to one piece flow

– Create 8 new work areas (shifting plant)

– Tidy up assembly area

Page 12: Competitive Manufacturing In New Zealand

2007

NDA Normanby - Benefits

• Production output increased by 100%

• Lead time to customer reduced by 50%

• Labour component reduced by average 26%, reducing labour costs by 20%

• Tremendous morale boost

• Better place to work (clean, safe, orderly)

• Keys to success– Outside mentor – Thorough analysis up front– Clearly defined projects– Focused training

Page 13: Competitive Manufacturing In New Zealand

2007

Common Principles

Page 14: Competitive Manufacturing In New Zealand

2007Common Principles

Tidy Up

Colour

Code

Page 15: Competitive Manufacturing In New Zealand

2007

Common Principles

1. Do not continue to cut down trees to sharpen the axe

2. Take time to sharpen the axe properly

3. Monitor the performance before and after the sharpening

4. Keep it sharp

Page 16: Competitive Manufacturing In New Zealand

2007

Common Principles

1. Leadership from the Top

2. Capable mentor / coach

3. Empower and Upskill

4. Share the Success

Let the People Talk

……………. Video