Presentation from Sustainex 2013

1. John McClune
Productivity Improvement Team

2. Cost & Cost Reduction Principle
SALESPRICE
Profit
Cost
Profit = Price – (OE +VA + NVA)
Value added work = customer is willing to pay for.
To increase profits costs must be reduced
Reduce
What costs are totally within your control?

3. A Different Approach: Thinking Lean!
• A way of working that eliminates waste & creates
continuous flow in a value stream to deliver
improved value and service, based on identified
customer requirements.
Lead Time
(time to deliver product / service to customer)
Typically up to 90% of all lead time
can be non-value added
Wrong
materials Queue / Wait
Time
Errors /
Rework
Equipment
unavailable
Batching /
end of period
Inadequate
Resource
Changes

4. T - Transport
I - Inventory
M - Motion
W - Waiting
O - Over production
O - Over processing
D - Defects - Rework
S - Skills (unused)
The Eight Wastes.
MOVE IT OVER
THERE UNTIL
WE NEED IT
Transport
DefectsOver processing
Over productionWaiting
MotionInventory
Skills

6. Productivity Improvement Team
• Experienced practitioners to deliver quantifiable productivity
improvements.
• Train, facilitate, mentor, advise and provide on-site support.
Improvement Opportunity Typical Improvement
Productivity 25%
Scrap / Defects 25%
Cycle Time 30%
Turnover 25%+
Client Issues Improvements
Gen Manufacturing
69 employees
Plant at max capacity & costs increasing; long
lead times; high stock levels; poor quality.
Throughput 50% (1000 to 1500 units /
week); improved TO & profit; Defects14%
Food & Drink
7 employees
Packing taking too long & at capacity; stock-
outs; late deliveries.
OTD 10%
Throughput 25% (£425K)
Printing
22 employees
Plant at capacity & high costs; long setup
times; stock levels increased & poor quality.
Throughput 20%; Lead Time 30%;
Quality 90% to 95%
Support a range of sectors from small to large

7. What Next ? InvestNI Client?
Contact Client Executive /
bisinfo@investni.com &
request lean support
Lean Fundamentals
Training
Lean Advisor Assigned
Scope a project.
1:1 support
Check the websites:
boostingbusinessni.com
nibusinessinfo.co.uk
Y N
Further advice email :
bisinfo@investni.com
Local support
e.g. Council websites
Request support on your
evaluation form