Meeting the Challenge of Rising Costs and Skills Shortage in the Australian Rail Industry

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• Meeting the Challenge of Rising Costs and Skills
  Shortage in the Australian Rail Industry
• Bede Boyle, Jim Laird and Michael Minns
• Synergy Management Consulting Group

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Our paper is presented in two parts

• Part A Meeting the Challenge of Rising Costs
• 1 Effective Corporate and Business Strategies
• 2 Business Risk and Opportunity Management
• 3 Change Management Mission Critical Skills
• 4 Lean Six Sigma Doing More with Less
• Presented by Bede Boyle

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Our paper is presented in two parts

• Part B Meeting the Challenge of Skills Shortage
• 5 Skills Shortage A Big Picture View
• 6 Managing the Situation Strategy
  Development
• 7 Developing a Highly Productive Workplace
  Culture
• 8 Company Branding
• 9 Case Study
• Presented by Michael Minns

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Challenges for the Rail Industry

• The Australian Rail Industry is suffering from
  the cumulative impact of rising capital and
  operating costs compounded by a critical skills
  shortage
• We will focus on how Lean Six Sigma can build
  capacity and capability to simultaneously meet
  the dual challenges of cost increases and skills
  shortage

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Achieving More with Less Resources

• The rail industry needs to simultaneously improve
  productivity and reduce costs
• Achieving More with Less Resources is perhaps
  the industries greatest challenge
• This is really the management dilemma
• How can I achieve more with less?

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Achieving More with Less Resources

• Process Management will deliver the best
• value for investment will entail four steps
• Develop a process focus to identify value-adding
  and non value-adding processes
• Measure and Benchmark process performance
• Design and Implement process change
• Deploy Improvement Initiatives measured
• against benchmarks

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Process Management
6?

• Outcomes
• Satisfied customers
• Good image in market
• Loyal employees
• Reputation as socially responsible
• Friendly to environment
• Profit

Stakeholders view of process
Control process outputs to achieve process
outcomes
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Six Sigma

• Six Sigma is a means of measuring and
• managing processes to consistently deliver
• outcomes that meet customer expectations
• It most importantly holds the dual promise of
• improving productivity and reducing costs
• whilst up skilling the organisation

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Six Sigma Methodology
SIX SIGMA Method
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Developing Six Sigma Capability

• Six Sigma Capability is developed by progressing
  participants through three levels of Six Sigma
  projects which deliver increasing
• Operational,
• Financial and
• Strategic benefits to the enterprise

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Developing Six Sigma Capability

• Level 1 Six Sigma Learn-by-Doing
• transfers problem solving skills to key people
• who Learn-by-Doing on Real Projects
• Level 2 Six Sigma Projects
• achieve sustainable improvement in core processes
  that are identified by management as constraining
  operational performance
• Level 3 Lean Six Sigma Projects
• drive process simplification to impact the bottom
  line by eliminating non value adding activities
  in core and support processes

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Thank You

• Bede Boyle Director
• Synergy Management Consulting Group
• boyle.bede_at_synergymcg.com
• Free Six Sigma briefings
• www.synergymcg.com