nemLEAN

A CONSTRUCTIVE APPROACH TO IMPLEMENTING LEAN METHODOLOGY

The business climate today points to an increasingly challenging environment and depending how this is managed performance can be significantly affected for the better or the worse. The challenge of managing increasing costs, quality of products and services and customer satisfaction against a background of increased competition often stretches already limited resources. Business owners can have access to an effective solution in the form of a practical tried and tested process that enables them to manage positive changes that will deliver tangible and fast benefits to the organisation. Lean is a business process that can practically help your manufacturing or service business to drive positive change.

WHAT IS LEAN ALL ABOUT?

There is a simple philosophy behind Lean to which any business leader can immediately relate. Its about providing products and services; According to the required specification At competitive prices At the required time In the agreed quantities With consistency and reliability and With friendly and knowledgeable service

THE BENEFITS OF LEAN

Lean will typically identify some low hanging fruit that will enable benefits to be realised and recognised over the short to medium term. This is an important motivator for both management and work teams to see results from their efforts. Here are some typical benefits that are both tangible and can be measured; Reduction in process cycle time Reduction in lead times Inventory shrinks Quality increases as defects are reduced Increase in customer satisfaction Sustained continuous improvement Staff motivation and commitment towards change
Improved profitability and ROI

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THE BUILDING OF LEAN

The building of Lean processes within a company can be visualised as the construction of a house. First starting with the foundations upon which the structural framework is placed with up-rights that are all interconnected with supporting lateral beams. This then provides support for the roof. Various tools are needed to make a solid construction that will withstand a tough business climate, rain or shine. Lets take a look in more detail at the main elements of building Lean

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THE FOUNDATION
Management commitment is essential and must be seen to drive the process through workplace teams. Workplace teams are at the core of a successful Lean implementation. It is these teams that will use the Lean tools to construct the framework. Companies will realise the benefits of utilising the huge reserves of knowledge, experience and ideas within the workforce. Staff will gain ownership of the process and will be motivated by seeing results that they have realised.

WORK TEAMS, MANAGEMENT COMMITMENT

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THE FRAMEWORK
Up-rights are the main elements of Lean working practices and they are all inter-connected and do not exist in isolation; Minimising waste and non-value adding processes Sustained workplace organisation Managing set-ups and production changes Minimise production downtime and interruptions Efficient workflow and physical layouts Reducing mistakes, re-work and customer complaints Work team/ cell organisation Continuous improvement of all processes

MANAGING PRODUCTION CHANGE

WORK TEAMS, MANAGEMENT COMMITMENT

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CONTINUOUS IMPROVEMENT

STRUCTURED WORKCELLS

ORGANISED WORKPLACE

MINIMISING DOWN TIME

EFFICIENT WORKFLOW

REDUCING MISTAKES

MINIMISE WASTE

THE ROOF
Once the framework has been established upon a solid foundation with the help of Lean tools, the roof can be constructed. When in place the roof represents the overall tangible results and benefits of Lean in terms of cost efficiencies, customer satisfaction and financial gain. Just as the roof provides the protection for the building so do these benefits provide the motivation to sustain Lean practices going forward and help to protect the company against a harsh business climate and increasing competitive forces.

IMPROVED ROI COST EFFICIENCIES CUSTOMER SATISFACTION

MANAGING PRODUCTION CHANGE

WORK TEAMS, MANAGEMENT COMMITMENT

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CONTINUOUS IMPROVEMENT

STRUCTURED WORKCELLS

ORGANISED WORKPLACE

MINIMISING DOWN TIME

EFFICIENT WORKFLOW

REDUCING MISTAKES

MINIMISE WASTE

THE TOOL SHED

Construction cannot be realised without good tools. There are various tools than can assist with the implementation of Lean and they are directly related to the needs of the foundation and structural framework. They are all practical and user-friendly. Value Stream Mapping (VSM) Sort, Shape, Shine, Standardise & Sustain (the 5Ss) Single Minute Exchange of Dies (SMED) set up reduction Total Productive Maintenance (TPM) Original Equipment Effectiveness (OEE) Causation analysis (Pareto Charting) Failure Mode & Effect Analysis (FMEA) Just-in-time inventory control (Kanban) Continuous Improvement (Kaizen)

IMPROVED ROI COST EFFICIENCIES CUSTOMER SATISFACTION

MANAGING PRODUCTION CHANGE

CONTINUOUS IMPROVEMENT

STRUCTURED WORKCELLS

TOOL SHED

ORGANISED WORKPLACE

MINIMISING DOWN TIME

EFFICIENT WORKFLOW

REDUCING MISTAKES

WORK TEAMS, MANAGEMENT COMMITMENT

VSM 5Ss SMED TPM OEE PARETO FMEA KANBAN KAIZEN

So what part of the framework of your business is not sound? Which tools would you choose from the tool shed to help you improve the situation? Why not ask a well rounded business professional from nem to help you see through the maze and reach a point of clarity on what will work best for you.

MINIMISE WASTE

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IMPLEMENTING LEAN
Every business is different and nem does not have a one size fits all approach towards Lean implementation. nems Australia-wide network includes Principals with senior management experience of implementing Lean within businesses across a range of industries. nems management experience using tried and tested techniques will facilitate the smooth implementation of Lean according to each unique business situation. Essential to this is how to sell the process internally, setting up a Lean organisation and where to begin.

Lean can be implemented in modular form, step-by-step starting with a basic process whereby improvements can be realised quickly. This allows stakeholders to realise that changes can be effectively managed and benefits can soon be seen in the workplace.

HOW CAN I FIND OUT MORE ABOUT IMPLEMENTING LEAN WITH nem?
nem Principals would be pleased to discuss the benefits of Lean and how these could be realised for your company. This can be done with a complimentary coffee meeting or as a result of a formal business review that identifies the potential benefits of Lean. Initial steps include establishing the Lean organisation, identifying priorities with regards to the implementation of Lean principles and the overall timing of the process. nem is also able to add further value through introduction to the financial incentives of the Australian Governments Enterprise Connect program including assistance with applications and eligibility. www.enterpriseconnect.gov.au

Melbourne Sydney Brisbane

Level 6, 606 St Kilda Road, Melbourne VIC 3004 Level 30, 100 Miller Street, North Sydney NSW 2060 Level 2, 50 McDougall Street, Milton QLD 4064 www.nem.net.au 1300 857 636