Continuous Improvement Product Development Report
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Product Development Session – Day 7 PRESENT: GM, Sales Director, Sponsorship Manager, CD, Conference Producer and Marketing Manager
TOPIC: Continuous Improvement CONFERENCE CODE: To be issued CONFERENCE DATE: May 8-9, 2007 PRODUCER: Alicia Boyd DATE: 15/12/2006 RESEARCH CALLS Total number of research calls : 38 Primary market : 35 ASC Barrick Gold Corporation BOC Gases Cerebos Comalco Diecraft Goodman Fielder Huhtamaki Australia Improvement Tools James Boag and Son K&K Fasteners Laminex Masterfoods ANZ Orica Limited Schefenacker Skilled Engineering Veolia Volvo Trucks Aust
ADI
Austool Boart Long Year British American Tobacco Colgate-Palmolive Davey Water Products Group Golden Circle Honeywell Hydro Aluminium Interface Australia Joy Mining Machinery KR Castlemaine Fine Foods Mack Valves National Foods Limited Riviera SIRF Roundtables The Age Print Centre Visy Paper Secondary market & related organisations : 3 Skilled Engineering BGL
Improvement Tools
► Only one respondent said that he wasn’t interested in the topic BACKGROUND The manufacturing industry is undergoing a lot of challenges posed by a changing corporate world. The trend toward globalization in particular requires manufacturers to be more competitive than ever. Continuous Improvement (CI) methodologies focus on exactly that – equipping an organisation to identify areas where they can improve their operations and continuing to do so over time. It involves an ongoing journey toward improvement, and a toolkit, or set of strategies for creating this improvement. 1
There are a range of CI methodologies available. The most popular and relevant to this sector is Lean Manufacturing and this is often used in collaboration with other systems like Six Sigma, Total Productive Management (TPM) or Total Quality Management (TQM), Theory of Constraints (TOC), 5S, Kanban. Too many others exist to list them all. Some of these CI methods are fairly gimmicky and purport to be a silver bullet solution to all of an organisation’s problems (manufacturing excellence in 10 easy steps). If used correctly, and tailored well to an organisation’s business plan, however, they are powerful tools. The philosophies of CI focus on increasing efficiency, value for money, adaptability and customer and stakeholder satisfaction. The specific areas of improvement delivered by CI are reduced waste, reduced lead times, higher quality, reduced cost, and improved cash flow – largely due to lower levels of inventories. The CI philosophy came out of Ford and Toyota starting off as the Ford Method then the Toyota Production Method Then Kanban Then TQM Then Lean. There are a range of other strategies that have been added to these systems. WHY IN AUSTRALIA? Australia has a very vulnerable manufacturing sector. A globalised market and entrenched manufacturing management that isn’t efficient, flexible and competitive has led to a large number of factory closages. Our market is showing quite low growth relative to the rest of the world. Continuous Improvement strategies can help our manufacturing industry to become better able to cope with the numerous challenges that it is facing. BENEFITS AND FEATURES FOR DELEGATES By attending this conference, delegates will learn how to: Reduce their organisation’s lead times, increasing customer satisfaction and reducing inventories Create an efficient operation that makes the most of any monetary investment Ensure the right balance between cost effectiveness and quality Compete in an increasingly globalised manufacturing market Manage their staff well – increasing ownership, motivation, productivity and communication Assess the range of continuous improvement methodologies and tailor a CI strategy that is aligned with their business strategy Avoid the pitfalls and learn from the successes of fellow manufacturers in implementing CI DEFINE THE FEAR/GREED FACTOR (LOW, MEDIUM, HIGH)? The fear factor is really high. A lot of Australian manufacturing companies have been forced to move offshore or have gone bankrupt due to increasing globalization. The trick to competing seems to be focusing on increasing quality and reducing lead times – both of which can be achieved through implementing continuous improvement (CI) strategies.
TARGET MARKET Primary Market 1. TARGET AUDIENCE – JOB TITLE 2
Directors, Managers, Leaders, Coordinators, Analysts, Coaches and Advisors responsible for: Continuous Improvement, Business Improvement, Process Improvement, Quality, Change, Lean, Six Sigma, Manufacturing, Operations, Production, Projects, Engineering, Plant, Processes, Logistics and Supply Chain It is critical that we pitch this event at the right level. Those who were disappointed with the lean manufacturing conference in February put it down to this issue – they were above the pitch level. They were experts in lean, relative to the speakers. One strategy I’ve thought of is to keep the sessions really practical – and instruct all speakers to talk about experience rather than “insight” – what they did and how they did it.
2. TARGET SECTOR All manufacturing industries, including: Food and beverage; textiles, clothing, footwear and leatherwear; wood and paper products; printing, publishing and recorded media; petroleum, coal and other energy products; non-metallic mineral products; metal products; machinery and equipment; and any other manufacturing areas. Secondary Market Continuous Improvement and Business Improvement Consultants CI System Marketers Continuous Improvement IT Solution Providers Related Organizations Victorian Lean Manufacturing Excellence Consortium Department of Innovation, Industry and Development
WHAT ARE THE MAIN PROBLEMS YOUR TARGET AUDIENCE IS EXPERIENCING WITH THIS ISSUE? WHAT ARE THEIR MAIN PRIORITIES? The main issues that the manufacturing industry is facing generally are: • Increasing competition from abroad, particularly from Asia – China, India, Korea, Taiwan • Input cost increases • Manufacturing sales market is unstable and there is not much new order growth • Production growth and investment growth are low These are the main drivers which lead companies to adopt continuous improvement strategies and this should be reflected in our conference material. CI is seen as a silver bullet – and there is a very dogmatic acceptance of lean around. I think that this is because the market is so vulnerable at the moment – and CI provides tools to reduce this vulnerability. The main challenges faced when implementing continuous improvement strategies are: Lack of upper management understanding and commitment Lack of whole organisational understanding and commitment Tailoring a CI system to fit well with your organisation’s philosophies and business plan – and vice versa HOW LARGE IS THE POTENTIAL MARKET FOR THIS CONFERENCE? 3
Primary: The amount of industry value added – which is a measure of the productivity of this sector, and thus, how big it is: Food, beverage, and tobacco - $17,535.5 million Textiles, clothing, footwear and leatherwear - $3207.4 million Wood and paper products - $6346.3 million Printing, publishing and recorded media - $9111.8 million Petroleum, coal and other energy products - $11290.2 million Non-metallic mineral products - $4528.4 million Metal products; machinery and equipment – $16132.8 million Other manufacturing - $3841 million These figures come from the ABS Yearbook Australia, 2006. Some other very useful resources are: PWC’s Surveys of Australian Manufacturing and Performance of Manufacturing Index (www.pwc.com/au) Ibis world has a fantastic review of the manufacturing sector – but we would have to pay for it http://www.ibisworld.com.au/industry/retail.aspx?indid=87&chid=1 Secondary: There is a strong vendor market, but I was unable to source exact figures. The Ibis world report would probably contain that data laid out nicely, if we were able to get it. Also, ARC’s Continuous Improvement Worldwide Systems report has a lot of specific information on the vendor market for CI http://www.arcweb.com/StudyPDFs/Study_ContImprvmtSys.pdf WHAT PERCENTAGE OF YOU TARGET AUDIENCE IS AT WHAT STAGE OF ADDRESSING THIS ISSUE? 1. Not interested 2. Research stage 3. Pilot project stage 4. Full implementation stage 5. Advanced operational stage
5% 15% 60% 10% 10%
(interested, looking at it, but no decisions) (basic/more general information needed) (presently working on or setting up the solution) (Implemented already so specific detailed information needed)
KEY CONTENTS AND STRUCTURE - Managing the human aspects of continuous improvement – change management, training, motivation, building and maintaining momentum. - The unique challenges faced by the Australian manufacturing industry – how do we compete in a globalised market? The consensus seems to be that we can’t compete on cost or volume, so we need to focus on improving quality and reducing lead times – how can CI help you do this. - Looking at all of the tools in the CI toolkit: systems, methodologies, philosophies – how can you use them, when do you use them and how do they fit together? Keeping this really practical and experience based – not overly theoretical or “sales pitchy”. 4
VENUE, LOCATION AND CONFERENCE DATE May is good timing, because it is separated well from the major competitive events Location : Melbourne COMPETITOR INTELLIGENCE COMPETITOR CONFERENCES National Manufacturing Week Reed Exhibitions http://www.nmw.reedexhibitions.com.au/ 22- 25 May 2007 Melbourne Exhibition & Convention Centre Free or nominal charge – more like a trade show This could be an advantage for us if we manage to arrange a partnership with this event – I am currently trying to do this. Lean Thinking in Manufacturing and Services Lean Enterprise Australia www.lean.org.au 6 & 7 March, 2007 Grand Hyatt, Melbourne $1500 Lean Leadership National Forum SIRF RT http://www.sirfrt.com.au/llnf.htm 20-23 February 2007 Melbourne Cricket Ground $1,950.00 Six Sigma Summit Sustaining Performance and Driving Business Growth Through Six Sigma Leadership IQPC May 29 - 30, 2006 Sofitel Wentworth, Sydney, NSW - It seems likely that they may produce another one this year $2968.90 2006 Better Business Conference SAI Global (one of our sponsors for best practice sustainability reporting) June 7-8 2006 $1700 ish RELEVANT MARCUS EVANS EVENTS TR125 CC454 CC445 TR85M TR85S
Lean Manufacturing Clean Production Lean manufacturing Lean manufacturing Lean manufacturing
Jon Jon Jon Cath Cat
18-Sep-06 14-Jun-06 9-Feb-06 30-Aug-04 26-Aug-04
5
23 26 102 17 30
SPONSORSHIP POTENTIAL WHAT IS THE SPONSORSHIP POTENTIAL OF THIS EVENT? Please mark with a cross - X HIGH __X__
MEDIUM
____
LOW _______
WHO IS THE TARGET AUDIENCE FOR SPONSORSHIP? Continuous Improvement and Business Improvement Consultants - Go into organizations and identify areas for improvement, help to train organizations and motivate them, give pointers for managing change and generally facilitate CI. Great potential speakers – this conference will be very strongly aligned with the services that they provide and the target audience that they service. Also really good for chair sponsors. CI System Marketers - Selling “one stop shop” CI systems that are guaranteed to reduce an organizations lead times, costs and improve quality in ten easy steps. This vendor market is rife with these sort of people – who confuse the idea of CI by saying that certain strategies can stand alone, and that pit strategies against each other (e.g. six sigma vs lean) – which can prevent people from seeing how compatible these ideas are, and how using them together can allow organizations to develop a more complete CI toolkit. NONE OF THESE PEOPLE CAN SPEAK AT OUR CONFERENCE – it would go down very badly. Good docs pack, luncheon or after conference drink sponsors. Continuous Improvement IT Solution Providers - Some of these are really good, however, I would be extremely reluctant to let these consultants speak as their presentations have been received really badly at previous CI events that we have held – on lean, etc. Good for docs pack, luncheon or after conference drink sponsorship.
WHO WOULD BE THE 5 KEY SPONSORS FOR THE EVENT? • • • •
Australian Manufacturing Technology Institute Limited (AMTIL) Promendo Improvement Tools GE • BGL – very highly regarded by a few of my interviewees WHO WILL BE YOUR KEY 5 CASE STUDIES WITHIN YOUR PROGRAMME? • • • • •
Ford or a major Ford supplier Toyota or a major Toyota supplier Golden Circle Nestle BOC Gases – they have a very strong potential speaker
MARKETING ISSUES Publications • • • •
Manufacturer’s Monthly Materials Handling and Distribution Quality Progress Manufacturing Week 6
• • • • • •
Advanced Manufacturing Manufacturing News Plant Manufacturer Quality Magazine Six Sigma Forum Magazine
Associations AME - The Association for Manufacturing Excellence Manufacturing Learning Australia
The Australian Manufacturing Technology Institute The International Society of Six Sigma Professionals Lean Enterprise Institute Six Sigma Benchmarking Association The Society of Manufacturing Engineers This topic should be a: Please mark with an X. Producer: __Alicia Boyd__
GO: _X__
NO GO: _____
Date: ____15/12/2006___
Conference Director : Catherine Miller
7
TOPIC: Continuous Improvement CONFERENCE CODE: To be issued CONFERENCE DATE: May 8-9, 2007 PRODUCER: Alicia Boyd DATE: 15/12/2006 RESEARCH CALLS Total number of research calls : 38 Primary market : 35 ASC Barrick Gold Corporation BOC Gases Cerebos Comalco Diecraft Goodman Fielder Huhtamaki Australia Improvement Tools James Boag and Son K&K Fasteners Laminex Masterfoods ANZ Orica Limited Schefenacker Skilled Engineering Veolia Volvo Trucks Aust
ADI
Austool Boart Long Year British American Tobacco Colgate-Palmolive Davey Water Products Group Golden Circle Honeywell Hydro Aluminium Interface Australia Joy Mining Machinery KR Castlemaine Fine Foods Mack Valves National Foods Limited Riviera SIRF Roundtables The Age Print Centre Visy Paper Secondary market & related organisations : 3 Skilled Engineering BGL
Improvement Tools
► Only one respondent said that he wasn’t interested in the topic BACKGROUND The manufacturing industry is undergoing a lot of challenges posed by a changing corporate world. The trend toward globalization in particular requires manufacturers to be more competitive than ever. Continuous Improvement (CI) methodologies focus on exactly that – equipping an organisation to identify areas where they can improve their operations and continuing to do so over time. It involves an ongoing journey toward improvement, and a toolkit, or set of strategies for creating this improvement. 1
There are a range of CI methodologies available. The most popular and relevant to this sector is Lean Manufacturing and this is often used in collaboration with other systems like Six Sigma, Total Productive Management (TPM) or Total Quality Management (TQM), Theory of Constraints (TOC), 5S, Kanban. Too many others exist to list them all. Some of these CI methods are fairly gimmicky and purport to be a silver bullet solution to all of an organisation’s problems (manufacturing excellence in 10 easy steps). If used correctly, and tailored well to an organisation’s business plan, however, they are powerful tools. The philosophies of CI focus on increasing efficiency, value for money, adaptability and customer and stakeholder satisfaction. The specific areas of improvement delivered by CI are reduced waste, reduced lead times, higher quality, reduced cost, and improved cash flow – largely due to lower levels of inventories. The CI philosophy came out of Ford and Toyota starting off as the Ford Method then the Toyota Production Method Then Kanban Then TQM Then Lean. There are a range of other strategies that have been added to these systems. WHY IN AUSTRALIA? Australia has a very vulnerable manufacturing sector. A globalised market and entrenched manufacturing management that isn’t efficient, flexible and competitive has led to a large number of factory closages. Our market is showing quite low growth relative to the rest of the world. Continuous Improvement strategies can help our manufacturing industry to become better able to cope with the numerous challenges that it is facing. BENEFITS AND FEATURES FOR DELEGATES By attending this conference, delegates will learn how to: Reduce their organisation’s lead times, increasing customer satisfaction and reducing inventories Create an efficient operation that makes the most of any monetary investment Ensure the right balance between cost effectiveness and quality Compete in an increasingly globalised manufacturing market Manage their staff well – increasing ownership, motivation, productivity and communication Assess the range of continuous improvement methodologies and tailor a CI strategy that is aligned with their business strategy Avoid the pitfalls and learn from the successes of fellow manufacturers in implementing CI DEFINE THE FEAR/GREED FACTOR (LOW, MEDIUM, HIGH)? The fear factor is really high. A lot of Australian manufacturing companies have been forced to move offshore or have gone bankrupt due to increasing globalization. The trick to competing seems to be focusing on increasing quality and reducing lead times – both of which can be achieved through implementing continuous improvement (CI) strategies.
TARGET MARKET Primary Market 1. TARGET AUDIENCE – JOB TITLE 2
Directors, Managers, Leaders, Coordinators, Analysts, Coaches and Advisors responsible for: Continuous Improvement, Business Improvement, Process Improvement, Quality, Change, Lean, Six Sigma, Manufacturing, Operations, Production, Projects, Engineering, Plant, Processes, Logistics and Supply Chain It is critical that we pitch this event at the right level. Those who were disappointed with the lean manufacturing conference in February put it down to this issue – they were above the pitch level. They were experts in lean, relative to the speakers. One strategy I’ve thought of is to keep the sessions really practical – and instruct all speakers to talk about experience rather than “insight” – what they did and how they did it.
2. TARGET SECTOR All manufacturing industries, including: Food and beverage; textiles, clothing, footwear and leatherwear; wood and paper products; printing, publishing and recorded media; petroleum, coal and other energy products; non-metallic mineral products; metal products; machinery and equipment; and any other manufacturing areas. Secondary Market Continuous Improvement and Business Improvement Consultants CI System Marketers Continuous Improvement IT Solution Providers Related Organizations Victorian Lean Manufacturing Excellence Consortium Department of Innovation, Industry and Development
WHAT ARE THE MAIN PROBLEMS YOUR TARGET AUDIENCE IS EXPERIENCING WITH THIS ISSUE? WHAT ARE THEIR MAIN PRIORITIES? The main issues that the manufacturing industry is facing generally are: • Increasing competition from abroad, particularly from Asia – China, India, Korea, Taiwan • Input cost increases • Manufacturing sales market is unstable and there is not much new order growth • Production growth and investment growth are low These are the main drivers which lead companies to adopt continuous improvement strategies and this should be reflected in our conference material. CI is seen as a silver bullet – and there is a very dogmatic acceptance of lean around. I think that this is because the market is so vulnerable at the moment – and CI provides tools to reduce this vulnerability. The main challenges faced when implementing continuous improvement strategies are: Lack of upper management understanding and commitment Lack of whole organisational understanding and commitment Tailoring a CI system to fit well with your organisation’s philosophies and business plan – and vice versa HOW LARGE IS THE POTENTIAL MARKET FOR THIS CONFERENCE? 3
Primary: The amount of industry value added – which is a measure of the productivity of this sector, and thus, how big it is: Food, beverage, and tobacco - $17,535.5 million Textiles, clothing, footwear and leatherwear - $3207.4 million Wood and paper products - $6346.3 million Printing, publishing and recorded media - $9111.8 million Petroleum, coal and other energy products - $11290.2 million Non-metallic mineral products - $4528.4 million Metal products; machinery and equipment – $16132.8 million Other manufacturing - $3841 million These figures come from the ABS Yearbook Australia, 2006. Some other very useful resources are: PWC’s Surveys of Australian Manufacturing and Performance of Manufacturing Index (www.pwc.com/au) Ibis world has a fantastic review of the manufacturing sector – but we would have to pay for it http://www.ibisworld.com.au/industry/retail.aspx?indid=87&chid=1 Secondary: There is a strong vendor market, but I was unable to source exact figures. The Ibis world report would probably contain that data laid out nicely, if we were able to get it. Also, ARC’s Continuous Improvement Worldwide Systems report has a lot of specific information on the vendor market for CI http://www.arcweb.com/StudyPDFs/Study_ContImprvmtSys.pdf WHAT PERCENTAGE OF YOU TARGET AUDIENCE IS AT WHAT STAGE OF ADDRESSING THIS ISSUE? 1. Not interested 2. Research stage 3. Pilot project stage 4. Full implementation stage 5. Advanced operational stage
5% 15% 60% 10% 10%
(interested, looking at it, but no decisions) (basic/more general information needed) (presently working on or setting up the solution) (Implemented already so specific detailed information needed)
KEY CONTENTS AND STRUCTURE - Managing the human aspects of continuous improvement – change management, training, motivation, building and maintaining momentum. - The unique challenges faced by the Australian manufacturing industry – how do we compete in a globalised market? The consensus seems to be that we can’t compete on cost or volume, so we need to focus on improving quality and reducing lead times – how can CI help you do this. - Looking at all of the tools in the CI toolkit: systems, methodologies, philosophies – how can you use them, when do you use them and how do they fit together? Keeping this really practical and experience based – not overly theoretical or “sales pitchy”. 4
VENUE, LOCATION AND CONFERENCE DATE May is good timing, because it is separated well from the major competitive events Location : Melbourne COMPETITOR INTELLIGENCE COMPETITOR CONFERENCES National Manufacturing Week Reed Exhibitions http://www.nmw.reedexhibitions.com.au/ 22- 25 May 2007 Melbourne Exhibition & Convention Centre Free or nominal charge – more like a trade show This could be an advantage for us if we manage to arrange a partnership with this event – I am currently trying to do this. Lean Thinking in Manufacturing and Services Lean Enterprise Australia www.lean.org.au 6 & 7 March, 2007 Grand Hyatt, Melbourne $1500 Lean Leadership National Forum SIRF RT http://www.sirfrt.com.au/llnf.htm 20-23 February 2007 Melbourne Cricket Ground $1,950.00 Six Sigma Summit Sustaining Performance and Driving Business Growth Through Six Sigma Leadership IQPC May 29 - 30, 2006 Sofitel Wentworth, Sydney, NSW - It seems likely that they may produce another one this year $2968.90 2006 Better Business Conference SAI Global (one of our sponsors for best practice sustainability reporting) June 7-8 2006 $1700 ish RELEVANT MARCUS EVANS EVENTS TR125 CC454 CC445 TR85M TR85S
Lean Manufacturing Clean Production Lean manufacturing Lean manufacturing Lean manufacturing
Jon Jon Jon Cath Cat
18-Sep-06 14-Jun-06 9-Feb-06 30-Aug-04 26-Aug-04
5
23 26 102 17 30
SPONSORSHIP POTENTIAL WHAT IS THE SPONSORSHIP POTENTIAL OF THIS EVENT? Please mark with a cross - X HIGH __X__
MEDIUM
____
LOW _______
WHO IS THE TARGET AUDIENCE FOR SPONSORSHIP? Continuous Improvement and Business Improvement Consultants - Go into organizations and identify areas for improvement, help to train organizations and motivate them, give pointers for managing change and generally facilitate CI. Great potential speakers – this conference will be very strongly aligned with the services that they provide and the target audience that they service. Also really good for chair sponsors. CI System Marketers - Selling “one stop shop” CI systems that are guaranteed to reduce an organizations lead times, costs and improve quality in ten easy steps. This vendor market is rife with these sort of people – who confuse the idea of CI by saying that certain strategies can stand alone, and that pit strategies against each other (e.g. six sigma vs lean) – which can prevent people from seeing how compatible these ideas are, and how using them together can allow organizations to develop a more complete CI toolkit. NONE OF THESE PEOPLE CAN SPEAK AT OUR CONFERENCE – it would go down very badly. Good docs pack, luncheon or after conference drink sponsors. Continuous Improvement IT Solution Providers - Some of these are really good, however, I would be extremely reluctant to let these consultants speak as their presentations have been received really badly at previous CI events that we have held – on lean, etc. Good for docs pack, luncheon or after conference drink sponsorship.
WHO WOULD BE THE 5 KEY SPONSORS FOR THE EVENT? • • • •
Australian Manufacturing Technology Institute Limited (AMTIL) Promendo Improvement Tools GE • BGL – very highly regarded by a few of my interviewees WHO WILL BE YOUR KEY 5 CASE STUDIES WITHIN YOUR PROGRAMME? • • • • •
Ford or a major Ford supplier Toyota or a major Toyota supplier Golden Circle Nestle BOC Gases – they have a very strong potential speaker
MARKETING ISSUES Publications • • • •
Manufacturer’s Monthly Materials Handling and Distribution Quality Progress Manufacturing Week 6
• • • • • •
Advanced Manufacturing Manufacturing News Plant Manufacturer Quality Magazine Six Sigma Forum Magazine
Associations AME - The Association for Manufacturing Excellence Manufacturing Learning Australia
The Australian Manufacturing Technology Institute The International Society of Six Sigma Professionals Lean Enterprise Institute Six Sigma Benchmarking Association The Society of Manufacturing Engineers This topic should be a: Please mark with an X. Producer: __Alicia Boyd__
GO: _X__
NO GO: _____
Date: ____15/12/2006___
Conference Director : Catherine Miller
7
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