How to be Creative, Innovative, Fast & Flexible

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How to be Creative, Innovative, Fast
Flexible
Releasing Hidden Capital To Maximise
Profitability

• Dr. John Blakemore
• Principal Innovation Blakemore Consulting Int.,
• masc_at_blakemore.com.au, www.blakemore.com.au,
  0414970758
• National President Manufacturing Society of
  Australia
• Advisor to Previous Australian Government on
  Innovation and Research and Development

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Sources of Hidden Capital And Costs

• Inventory (RM, WIP, FG )
• Consignment Stock
• Old Inventory
• Excess labour
• Waste in all forms
• Product made greater than EPR
• Debtors gt Creditors
• Interest rates overdraft gt borrowings
• Repairs and rework and errors
• Defective product and process.
• Not optimizing cycle time and lead time etc

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Lessons from The Best Companies in the World

• John Blakemore recently visited some of the best
  companies in the world including, Honda, Toyota,
  Canon, Mazda, Kawai, Panasonic as part of an
  investigation to add to our understanding of
  Creative Lean Flow.
• These lessons can be applied to all Enterprises
  for both information flow and product flow.
• To the list of TQM, and Lean we now need to add
  Kyosei, and the German Meister system.
• DemandProductionSupply

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Flow
Supplier
Customer
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Simulation of Creative Flow Information and
Product
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Strategy What we need to Know
1. Your Business 2. Industry Trends 3.
Organisational Effectiveness 4. Market
Opportunities 5. Competitive Position 6. The
Environment 7. Global Trends
Strategic Advantage for Winning (SAW) Match
Vision With Capability and put in Control Systems
Action Plans
Strategic Plan
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Buying Decision in the Value Chain
Value Creation
Customer
S U P P L Y
People MarketingSales Innovation Finance Operatio
ns
Customer Value
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Waste and Sustainability..Canon Toride

• Canon classifies waste as
• Material
• Expenses
• Planning
• Expenses and Material waste
• Are easy to measure. What about
• Planning Waste?

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Process Flow Before Innovation
Shipping
Warp Fill yarn
Heatset
Fill yarn
Warp yarn
N / H rolls
Beam
Inspection
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Stage 1 Improvement
Shipping
Warp Fill yarn
Shipping
Inspection
Heatset
N / H rolls
Warp yarn
Fill yarn
Beam
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Pirelli ..Output Defectives
Defectives
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What Has Been Done (Shaw (USA) in Australia).see
IPO 300M T/O 38 to 95 OTD, DPS, GM up 5,FG
Inv Down 18M
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Precision Valve AustraliaIncorrect Measurements
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Sales by Week Hi Vol line
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Value Added
PROCESS PARTS (6)
1
2
3
4
5
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1 - Setup (Preparation) 2 - Run(The Value
Added Step) 3 - Maintenance (Preventive) 4 -
Breakdown(Errors rework) 5 - Idle(available
to run but not utilised 6 - Cleanup
VA 2,(3)? Run Preventive Maintenance
Eliminate Breakdown Idle Setup? (?
SMED) Cleanup ? Concurrent
Engineering
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Conventional PL
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Defect versus Control
Industry Control (s) Some 1
Hospitals 2 Good Cos 3 Top Japanese
6 Honda Siama 7
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25 Lean, Green, Rules

• 1. People (1,2,3)
• 2. Integration (4 to 9)
• 3. Planning(10 to 16)
• 4. Operations(17 to 25)

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Cochlear and Toyota

• Cochlear is Australias most innovative
  company.(Ibis 2005)
• Blakemore Consulting consults to Dr Chris Roberts
  and has redesigned all major manufacturing
  systems using Lean
• USA hospitals were losing money fitting Cochlear
  Implants until they studied the Toyota system in
  Japannow profitable.(ref Chris Roberts 2005)
• 4. GM was the worlds biggest carmaker but
  Toyota could have bought all of GM with last
  years profit alone (Ref The Australian
  2005)since then GM, Ford and Chrysler are
  virtually bankrupt

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Concepts

• Cooperative Team Based Culture
• Continuous learning and improvement
• Kaizen and Kyosei
• Continuous Flow, Max Value Added
• Optimize the Whole
• Pull by Customer on Demand
• Lead Time Reduction (Velocity)
• Quality Cost Delivery
• Recognize 6 parts of a process
• Measure and improve the VA step
• Do Not Change the plan but reduce plan time

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Recent Achievements using 25 Rules (Innovation)

• Hazard significant productivity gains in
  18months
• Pirelli Output doubled, NP from 5 sales to
  15 profit
• CSFB 40M fr WC , OT D 38 to 95, Loss to 40M
  EBITA
• Tannery Colour defects eliminated from 15
  defective
• Steel Fabricator Plant redesign, Mat Handling
  halved
• Computer Supplier Loss 60,000 to profit 1.0M I
  year
• Aluminium Fabricator Productivity doubled in 6
  months
• Speedo QR to retailer, inventory down, service
  up.
• 14 Plastics Companies All increased bottom line
  in 1 yr.
• Geelong Cement Productivity Gain of 25 in 6
  months
• Warkworth Mine Productivity Gain of 16 in 6
  Months
• 12. BHP to PVA RM Inventory reduced from 1.5M
  to 60,000

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The End
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Acknowledgements

• Blakemore Consulting is very conscious of
  the importance of the confidentiality we afford
  to our clients. All results and comments
  presented here have been supported by the
  relevant executives and in particular we would
  like to thank the following clients
• Dr. Ezzelino Leonardi Tech Director Pirelli
  Cables
• Dr Chris Roberts CEO Cochlear
• Mr. Michael Gerakios MD Albany International
• Mr. Norris Little President Shaw USA
• Dr. Bob Blake, Mr Barry Connell, MD Precision
  Valve Australia
• Mr. Brendan Dalton Ausindustry Canberra
• Mr. Gary Lingford GM Geelong Cement
• Mr. Nick Stump MD Comalco Australia
• Mr. Don Mathews President SCAHA
• Mr. Chuck Smith CEO Moore Business Systems
• Mr Richard Hammond CEO Adelaide Brighton
• Mr Bob McCallum, CEO Panasonic Australia

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