Case Study 1 - 25% gain in labour productivity

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Drivers for Change: Cost pressures & lead times

Main focus: Labour Productivity, Capital Productivity, Energy Productivity

Key Strategies: Changes to working practices with introduction of flexible rostering and revised incentive scheme

Outcome: 25% improvement in labour productivity within 1 month (step-change solution). Significant improvement in energy productivity and asset utilisation. Added bonus of improved lead times/responsiveness. 

KPI's employed: Tonnes per man/shift, kwh per Tonne, overall equipment effectiveness (OEE),  %, ROI

Notable challenges:  Required workforce acceptance of contractual changes 

Drivers for Change: Survival of manufacturing Plant

Main focus : Labour Productivity, Material Yield

Key Strategies: Changes to working practices and introduction of a revised incentive scheme

Outcome: 20% improvement in labour productivity within 2 months. Process waste reduced by 50%

KPI's employed: Value added per man/hour, material yield %, sales/payroll

Notable challenges: Acceptance of change by a very traditional and highly unionised workforce

Drivers for Change: To facilitate exponential growth

Main focus : Labour Productivity, capital asset productivity

Key strategies: Upskilling and development of 1st line supervisors. Introduction of Lean manufacturing practices and a revised incentive scheme

Outcome: 200% turnover growth within 2 years with minimal capital investment. 

KPI's employed: Value added per man/hour, sales/payroll, sales rate of change, sales/floor area, OEE%

Notable challenges:  Space constraints, acceptance of revised incentive scheme