Culture, Productivity, Kaizen, Lean, Business Improvement

All the above are current buzz words, especially productivity.  No matter which of these areas we focus on, I think we would agree that leadership is of utmost importance.

When talking about the above we mention empowering individuals, and allowing for innovation from within.  But how can we achieve this without effective leadership, and a culture that thrives on the excitement of being involved in creating a better department, company or economy.

The Australian prime minister’s task force came up with a report on manufacturing entitled “Smarter Manufacturing for a Smarter Australia”. (http://www.innovation.gov.au/Industry/Manufacturing/Taskforce/Documents/SmarterManufacturing.pdf)

While looking at the challenges that face the manufacturing sector, the report also focuses on the opportunities that this creates.  It discusses the importance of manufacturing to Australia, the economy and most importantly our people, you, me and our children.

One comment in the report, also made directly to the Prime Minister, Ministers Combet and Shorten was: “We are particularly concerned that leadership and judgement is brought to bear on the ‘perceptions issue’ about Australian manufacturing.”

Again we are talking about leadership and judgement, but the report further outlines the importance of broad-based Australian economy, built on competitiveness, productivity and innovation.

Figure 1.1 below highlights the importance of policy in achieving the above objective through a strong direction created by a solid strategy.  The total report spans over 117 pages and contains detailed data on the manufacturing industry.  I would recommend that you have a good read of it, if you are interested in the future of our country.

Figure 1.1 SMARTER MANUFACTURING FOR A SMARTER AUSTRALIA – POLICY FRAMEWORK

The bottom line however is that while policies can be set, strategies discussed, and recommendations presented, it is up to the individual’s leading the businesses within the sector, as well as the ones supplying the sector, and finally the consumers to ensure the path is sustainable.  Associations and industry councils, advisory boards, the education sector and we as individuals also play an important part.  We all have a hand in shaping the future of this country, as insignificant as it may seem.

At the end of the day, it will be the voice of many that will create a better future.  I think none of us can be under the illusion that it will be easy.  We must accept that severe changes will be required about how and where we do business.  And the “pessimists” must stop the negativity and winching, and should focus on the opportunities that are presented to us.  The faster this happens, the sooner we will move on.

Change can be exciting, although scary at times, and it will mean entering a zone that we are not comfortable with.  But if we are big enough to accept that there are other options, and that we need to open our eyes, we will be able to see the light at the end of the tunnel.

There are many tools that will help us achieve better productivity, leaders, culture and so on.  Not all will work for everyone, but they will allow individuals at the front line to help pave our way to the future.  Together with the right leaders these individuals will create companies that are efficient and sustainable.  There are already many programs available to businesses that will support change financially.  These could be initiatives to support sustainable practices, reduce environmental impacts, or purely arm individuals with the skills required to affect the necessary changes within industry.

For more information on initiatives, leadership, or any other comments, please contact me at Chase Performance on 1300 880 338.  I am located in Melbourne, but regularly visit our offices in Adelaide, Perth, Brisbane and Sydney, and am always happy to have a chat and discuss any of the items above in person over an Espresso.

Best regards

Roland Weber

What is 5S

5S is the name of a workplace organisation methodology that uses a list of five Japanese words which are seiri, seiton, seiso, seiketsu and shitsuke. Transliterated or translated into English, they all start with the letter "S". The list describes how to organise a work space for efficiency and effectiveness by identifying and storing the items used, maintaining the area and items, and sustaining the new order.

Sorting (Seiri)

Eliminate all unnecessary tools, parts, and instructions. Go through all tools, materials, and so forth in the plant and work area. Keep only essential items and eliminate what is not required, prioritising things per requirements and keeping them in easily-accessible places. Everything else is stored or discarded.

Stabilising or Straightening Out (Seiton)

There should be a place for everything and everything should be in its place. The place for each item should be clearly labeled or demarcated. Items should be arranged in a manner that promotes efficient work flow, with equipment used most often being the most easily accessible. Workers should not have to bend repetitively to access materials. Each tool, part, supply, or piece of equipment should be kept close to where it will be used – in other words, straightening the flow path. Seiton is one of the features that distinguishes 5S from "standardised cleanup". This phase can also be referred to as Simplifying.

Sweeping or Shining (Seiso)

Clean the workspace and all equipment, and keep it clean, tidy and organised. At the end of each shift, clean the work area and be sure everything is restored to its place. This makes it easy to know what goes where and ensures that everything is where it belongs. Spills, leaks, and other messes also then become a visual signal for equipment or process steps that need attention. A key point is that maintaining cleanliness should be part of the daily work – not an occasional activity initiated when things get too messy.

Standardising (Seiketsu)

Work practices should be consistent and standardised. All work stations for a particular job should be identical. All employees doing the same job should be able to work in any station with the same tools that are in the same location in every station. Everyone should know exactly what his or her responsibilities are for adhering to the first 3 S's.

Sustaining the Practice (Shitsuke)

Maintain and review standards. Once the previous 4 S's have been established, they become the new way to operate. Maintain focus on this new way and do not allow a gradual decline back to the old ways. While thinking about the new way, also be thinking about yet better ways. When an issue arises such as a suggested improvement, a new way of working, a new tool or a new output requirement, review the first 4 S's and make changes as appropriate.

Safety

A sixth phase, "Safety", is sometimes added. There is debate over whether including this sixth "S" promotes safety by stating this value explicitly, or if a comprehensive safety program is undermined when it is relegated to a single item in an efficiency-focused business methodology.

Security

A seventh phase, "Security", can also be added. In order to leverage security as an investment rather than an expense, the seventh "S" identifies and addresses risks to key business categories including fixed assets (PP&E), material, human capital, brand equity, intellectual property, information technology, assets-in-transit and the extended supply chain.

Satisfaction

An eighth phase, “Satisfaction”, can be included. Employee Satisfaction and engagement in continuous improvement activities ensures the improvements will be sustained and improved upon. The Eighth waste – Non Utilised Intellect, Talent, and Resources can be the most damaging waste of all.
It is important to have continuous education about maintaining standards. When there are changes that affect the 5S program such as new equipment, new products or new work rules, it is essential to make changes in the standards and provide training. Companies embracing 5S often use posters and signs as a way of educating employees and maintaining standards.


For more information on how we can assist you at no cost to implement these systems in your organisation please contact me on 1300 880 338 or email sales@chaseperformance.com


Here is another beneficial link to our Japanese associates:  http://www.process-improvement-japan.com/lean-5s.html

Finally, you can visit our web site for more information: http://www.chaseperformance.com