Big Savings for Small Companies

1
Big Savings for Small Companies
2
Do you recognise these issues?

• Strong need to cut costs ideally without
  slashing staff levels
• Frequent firefighting by senior management to
  make things happen or to overcome crises
• Poor delivery performance on time in full do
  you even know?!
• Disproportionate levels of overtime or outwork
• Too many cock-ups lack of care or communication
  breakdowns?
• Too much progress chasing tying up production
  office, customer service or sales staff
• Known capacity bottlenecks often believed to be
  solvable only by further investment
• Ill-defined but high material waste levels
  paper, board or film

3
Continuous Improvement techniques

• Customer Service management
• Information Flow
• Key Performance Indicators
• Waste Reduction
• Productivity Improvements
• Workplace Organisation

4
1. Customer Service Management

• Few printers view this as a process yet bigger
  impact on customers than product cost.
• There are simple steps that make customer service
  a process
• Measure OTIF (On Time In Full)
• Measure customer satisfaction objectively
• Review and improve customer service processes
• Create Standard Operating Procedures
• Train customer service staff

5
Customer Service

• Measure On Time In Full (O.T.I.F.) Trend
  Reasons for failed deliveries

Review customer service processes agree
procedures.
Agree Roles responsibilities
6
2. Improving Information Flow

• Create standard methods of doing tasks
• Stage Status of every current job is clear
• Improved planning through Visual Management
• No time lost looking for job-bags
• Make optimum use of MIS systems

7
Example Customer Service KPIs

• Quote hit rate
• Quote turnaround time
• Proof turnaround time
• No. Proof Amends by customer
• Information Not Right First Time (N.R.F.T.)
• Lead Time (value adding vs queue time)
• Customer complaints

8
3. Key Performance Indicators (KPIs)

• IF YOU DONT MEASURE IT
• How do you know if you have improved it?
• How do you know if your costs are accurate?
• How can you plan and give accurate delivery
  promises to customers?

9
KPIs Support
10
KPIs

• Big
• Simple
• Obvious
• Locally owned
• Provides focus for team briefings

with high but achievable targets agreed by team
11
Control and Improvement
12
4. Material Waste reduction

• What are the main issues?

• Where are we now?

13
Material Waste reduction
Use data to Identify Priority areas for
improvement.
Map the process to understand where waste occurs
associated issues.
Implement, communicate agree improvements.
14
Its not just scrap and reprints.
..But its ALL lost money!
15
5. Productivity

• Overall Equipment Effectiveness (O.E.E.)
• The acid test for how well an asset is working
  for the Business

X
X
World Class 85
O.E.E. 54
16
Analyse Downtime Causes
17
Make-Ready Reduction
Typically 30-40 Reduction next step to share
agree revised method
18
Standard Operating Procedures
A means to communicate a safe most effective
current method of carrying out a process.
19
Lean Focused Maintenance

• How much time lost through breakdown or slow
  running?
• How long actually required?
• Engineer or operator task?
• Weekly block of time or break into short,
  frequent easily monitored steps which can be
  carried out during unplanned downtime?

Ask your self.. HOW MUCH WILL IT COST THE
COMPANY IF WE DO NOT TAKE CARE OF OUR EQUIPMENT?
20
6. Workplace Organisation (5C)

• Stand still at your workplace for a few moments
  each day. Look 360 around you. Ask yourself
  these questions
• Are there any things in the gangways?
• Does anything look out of place?
• Can you see parts that shouldnt be there?
• Can you spot any leaks/spills?
• Is your work station cluttered?
• Are there any damaged tools/tooling?
• Does the area look out of control?
• You cannot do it alone!
• If the answer to any of these is YES what are YOU
  going to do?

21
Benefits of 5C

• Reduced costs - fewer quality issues
• Process Improvement - reduced waste
• Increased efficiency - less wasted time
• Improved company profile - good reputation
• Impressed customers - leave wishing they were
  as good
• Future business - good efficiency good
  quality Growth
• Improved safety fewer accidents

...to this
5 C
From this
...with
22
5C Workplace Organisation
Why do we need to.
What is 5 C ? A method to organize and maintain
a clean, efficient workplace. Where all employees
work as a team to constantly maintain and carry
out well organized and completely understood
daily operations. 1. Clearout 2. Clean
Check 3. Configure 4. Conformity 5.
Custom Practice
because this is what we work round and our
customers see!
23
Goals of Continuous Improvement

• Improved Customer Satisfaction
• Reduction in Process Variation
• Higher Operating Income
• Improved Process Efficiency
• Constant Measurement
• Defeat the Competition
• Breakthrough improvements
• Changing the Culture
• Better Working Environment
• More For Less

24
Precision Printing Case Study

• Family run business with a turnover of 9million
  pa
• Stationary printers based in a 6 storey building
  in EC1 for nearly 60 years
• In May 2005 moved into a purpose built factory in
  East London and expand into the B2 market
• 85 Employees
• Won BPIF award for Print company of the year in
  2007
• B2 house with a strong colour digital function
• Thought we were running very efficiently until we
  heard about Vision in Print

25
Why We Started Process Improvements

• After 2 years in the purpose built building we
  thought we needed some insight on workplace
  organisation productivity
• We expanded faster than we could deal with,
  growth was over 60 in the 2 years
• In a very competitive marketplace
• Wanted to make sure our procedures were efficient
  and that Quality Assurance remained high
• A difficult balance to achieve

26
What We Did

• Premier Snapshot
• With ViP we looked at our current processes and
  we understood what we were good at and what we
  could improve that allowed us to target our
  efforts
• Office Pre-Press Change Cycle
• A priority was to focus on the smooth flow of
  work through the process to give more accurate
  information and to reduce the possibility of
  mistakes, also to free more Account Managers time
  to give an even higher level of service
• Materials Waste Reduction
• Aimed to better manage our materials to reduce
  our levels of paper waste and therefore reduce
  our costs

27
Difficulties of Implementing

• Hardest task was allocating staff time and staff
  allocating their own time to do programmes
• They felt they were lumbering colleagues into
  covering for them
• Staff found it hard to see the bigger picture for
  the first couple of sessions
• The attitude of some of the established members
  of staff was a tad on the tricky side
• ViP dealt with this exceptionally well and
  somehow managed to change the perspective that
  they viewed the company in
• As long as you choose a team that is enthusiastic
  as well as opinionated then the programme will
  work
• From a management perspective the PrintLondon
  funding helped immensely in the initial decision
  making
• But the overall savings warranted the ViP outlay

28
Benefits

• We all felt the MIS system we currently use was
  key to progress and was currently holding us back
• This was looked at in great depth and questioned
  throughout the programme
• A decision to either upgrade or move to a
  competitor is imminent
• Information exchange has improved throughout the
  business especially in the front end
• 40 page emails no longer follow orders with the
  critical information on page 38
• Paper wastage also reduced as we were not
  allocating enough paper on longer runs causing
  jobs to come up short and reprints to be higher
• Staff morale is much higher as they now feel part
  of a team and not like they are being dictated to

29
Further Continuous Improvement Plans

• In the process of extending the factory by 15000
  sq ft
• We will be carrying out a factory
  layout/workplace organisation programme involving
  all staff once machinery is finalised
• Will re-run some elements of Change Cycle once
  MIS change is complete
• Will look to further ongoing improvements as the
  business needs and demands change

30
How To Find Out More

• Cost Reduction Through Lean Workshop 12th Feb
  London
• 195 per delegate (1/2 Payable by PrintLondon)
• Talk to me or 2 Colleagues Richard Gray and Mark
  Guyer
• Feel free to call or email me to arrange a visit
  your business
• paul.gamble_at_visioninprint.co.uk
• 07841 213785