Consultants Spring Forum

17 April 2014

Consultants Spring Forum 17 April 2014AgendaWelcome / Introduction• LEAN Business Offer

• Competitiveness Benchmarking

• Green

• Consultants Directory Update 

• Client participation‐work‐to‐date

• Update on Current Activities: Lean Events, Conferences, Visits and Networks 

• Company Feedback – LeanTransform Summit / Consultant Quality Assurance

• Enterprise Ireland Strategy and Plans

• Consultants' experience / feedback 

• National Step Change Initiative

• Break ‐ Light Lunch @1pm

• Breakout Sessions 1.45 – 2.20pm 2.20 – 3pm

Lean Business Offer Overview

ObjectiveIncreasing competitiveness through Lean Business Principals.

3 levels of intensity:• LeanStart focus on value• LeanPlus  performance improvement• LeanTransform  business transformation

• Delivered by external consultants, method set out by EI

• Support funding from Enterprise Ireland

Key Features of the Lean Business Offer

LEANStart• introduce lean principles / agile processes• complete a specific cost reduction project• includes Environmental Best Practice Initiative

1st Steps to Green Competitiveness .• 7 days consultancy, extending over typically 8 -12 weeks.

LEANPlus• medium-scale business process improvement project• sustained use of Lean & similar business process improvement methods• significant measurable gains in capabilities & competitiveness.• typically be not less than 6 months duration.

LEANTransform• extensive, holistic company transformation programme• embed the culture & competences necessary for sustainable competitiveness gains across the

business and its supply chain. • assignments will typically extend for at least 1 year.

LeanStart – A New RequirementEnvironmental Best Practice Initiative

1st Steps to Green Competitiveness Initiative

Compulsory for all Compulsory for all LeanStart projects approved projects approved from January 2014 onwards.from January 2014 onwards.

SUMMARY OF LEAN Business Offer

Offer Level Eligible cost elements ProjectCosts

EI grant

LeanStart ‘Lean’ consultancy fees at €900 per day (7 days) €6300 €5000

LeanPlus‘Lean’ (& specialist) training fees

Cost of company lean project champion– Up to 50% of the total project cost – ≤ the external training costs – ≤ €20k

Up to €70K

Up to50%

Lean-Transform

Training fees / training costs

company staff costs and other costs as may be approved by EI

Typically over €100 k

As set by EI.< 50%

Lean Business Offer

Eligible Enterprise Ireland Clients• Established &• Scaling Division companies

Process• Company discusses with their Development Advisor (DA)• Application made on-line• Internal Enterprise Ireland approval process• Project Start Signal comes from the company • Funding contract - between Enterprise Ireland & the Company / Letter of Offer• Grant approval process

Lean Desk • Involved at approval & grant clearance stages • Keepers of the Directory of Service Providers• Role - facilitates smooth running

Competitiveness Benchmarking Company Health Check (CHC)

• A method to establish a company’s competitive position

• A strategic review of strengths & weaknesses

Comparison of: • business methods & outcomes (practice

& performance)• in a continuous & systematic process • against international SME database’s

Integrated Approach

Diagnostics + Medicine

CHC + Lean Business

What Does the Company Get?

• Objective feedback on company position

• Quantitative & Qualitative Data

• Comparison against your peers / sector /industry norms via international database’s

• Company strengths & weaknesses identified

• Prioritises opportunities for improvement

• Helps aim for superiority rather than parity

Green Offer – Overview

Purpose• Increase competitiveness through cost savings on energy / water / waste • Improve market position & opportunity through

Enhanced environmental reputation & credentialsGreen Procurement Supply Chain Pressure ISO 14001/50001 CSR Carbon Disclosure

Supports• Free advice • Funding for feasibility / external training / consultancy

Green Offer - New

Closer alignment with the Lean Offer.

• LeanStart projects to include 1st Steps to Green Competitiveness Initiative Compulsory for all LeanStart projects approved from January 2014 onwards.

• Designed to help companies begin the process of environmental improvement.

What’s involved in the 1st Steps to Green competitiveness• Introduction of a basic Environmental Policy Statement &• Use of Environmental Management Templates - 1st Steps to Green Competitiveness Guidebook• ½ day time commitment• Leanstart Report Templates amended to enable report back on this initiative• Further training will be provided as required, all queries & training enquiries to:

Green@enterprise-ireland.com Declan.White@enterprise-ireland.com Tom.Lowry@enterprise-ireland.com Kyran.Vallom@enterprise-ireland.com

• Companies may undertake GreenStart/GreenPlus as well as Lean Offer package.

• Technical Feasibility studies for product/process improvement

Green Offer

GreenStart • Consultancy support• Embedding Environmental Best Practice • Basic management system• Training and awareness

GreenPlus• Capability building to develop skills to manage environmental/energy issues. • External trainer will use hands on and classroom training to develop skills of internal Green Champion • Champion puts systems in place to manage environmental impacts and/or energy efficiency up to

international standard certification level

Technical Feasibility studies • Support towards the use of Life Cycle Analysis of products to reduce their impact on the environment.• Process based projects with similar outcomes also eligible. For example: implementing energy efficient

processes/practices, using eco-design to make products more environmentally friendly.

Green Offer

• GreenStart -Consultancy support based on embedding Environmental Best Practice through development of formalised environmental management.

– Guidelines on how projects should be conducted. 7 day consultancy, project based activity– Includes reporting mechanism– Metrics on resource efficiency savings identified– SMEs only eligible to apply

Required Reports• Day 3 report• Final report• Targets Achieved – (table below)• Case Study

Impact metrics – projected savings etc.

Annualised Cost Savings in €

% Energy, waste & water saving as outcome of assignment

Successful Tenders as a result of the assignment

Notes

Impact metrics table:

Green Offer

• GreenPlus –Training based programmed to building Capability in order to develop skills in managing environmental/energy issues.

– External trainer will use hands on and classroom training to develop skills of internal Green Champion Guidelines on how projects should be conducted.

– Champion puts systems in place to manage environmental impacts and/or energy efficiency up to international standard certification level

– Includes reporting mechanism– Metrics on resource efficiency savings identified– SMEs and large companies eligible to apply

Required Reports• Day 3 report• Interim report• Final report• Targets Achieved – (table below)• Case Study

Impact metrics – projected savings etc.

Annualised Cost Savings in € % Energy, waste & water saving as outcome of assignment

Successful Tenders as a result of the assignment

Notes

Impact metrics table:

Green Offer

GreenStart/GreenPlus:

• Guidelines available on how projects should be conducted • Includes reporting mechanism• Metrics on resource efficiency savings identified• SMEs and large companies eligible to apply

• NOTE:• Reports are required for company grant clearance purposes• No Metrics – No Grant Clearance• Reports are required in word format • All reports must be signed by company and consultant.• It is sufficient if the company submit the consultants reports by email. • Report templates are provided in the Assignment Guidelines.• Submit reports to: green@enterprise-ireland.com

Green Offer

• Technical Feasibility studies:

- Support towards the use of Life Cycle Assessment of products to reduce their impact on the environment

- Cradle to grave approach

- Process based projects with similar outcomes also eligible. For example: implementing energy efficient processes/practices, using eco-design to make products more environmentally friendly

- Companies can apply for Eco-labelsusing Technical Feasibility

- Support for internal staff time on project [restricted to companies <50 employees], consultant, prototyping, travel and subsistence

Contact Points

Lean Business Offer lean@enterprise-ireland.com

Environmental / Green OfferDeclan.White@enterprise-ireland.comTom.Lowry@enterprise-ireland.comKyran.Vallom@enterprise-ireland.com

Competitiveness BenchmarkingJan.Gallagher@enterprise-ireland.com Tadhg.Egan@enterprise-ireland.com

Tax Clearance  Self Declaration of Financial & Economic Capacity

Thank you for • completing the tax clearance declaration form• committing to remain tax compliant while on the directory

• We intend to take a snap shot of the directory from time to timeand request current tax clearance certificates

Lean Offer Required Reports

LeanStart‘Day 1 report’‘Final report’Targets AchievedCase Study

LeanPlus‘Day 3 report’‘Interim report’‘Final report’Targets AchievedCase Study

LeanTransformProject Scoping reportInterim reportFinal reportTargets Achieved

Case study

• Reports are required for company grant clearance purposes• No Metrics – No Grant Clearance• Reports are required in word format• All reports must be verified by the company and the consultant.• It is sufficient if the company submit the consultants reports by email. • Report templates are provided in the Assignment Guidelines.• Submit reports to: Lean@enterprise-ireland.com

Help keep us LEAN

Metrics, Metrics, Metrics,

Metrics, Metrics, Metrics

Metrics, Metrics, Metrics,

Metrics, Metrics, Metrics,

Help keep us LEAN

Thank you to all who provide timely and ‘Right First Time’ Reports

To everyone else we say

• Metrics, Metrics, Metrics, complete the metrics table

• If there are no metrics it is not a final report & no grant

clearance

• Word format for ease of processing

• Submit in a timely manner

Correspondence Lean Business Offer

All Correspondence to:Lean@enterprise-ireland.com

LEAN Resources

• Company Health Check • Lean Business Offer • Build a Green and Sustainable Business • LEAN Publications• Presentations

http://www.enterprise-ireland.com/en/Productivity/

• LeanStart• LeanPlus• LeanTransform

• 1st Steps to Green Competitiveness • Funding

www.Envirocentre.ie COMPETITIVENESS Weblink http://bit.ly/1eCo7iJ

LeanTransform Training Programme Specification

Programme Title

Programme Objectives

Programme Duration

Programme Course Outline

LeanTransform Training Programme Specification ‐ Example

Programme Title: Total Asset Care

Programme Objectives:Overall - Introduce relevant employees to the concept of “Total Asset Care”. Key - Provide employees with the skills to adopt asset care management and autonomous maintenance.

Programme DurationThe programme will be conducted over an agreed period of time by way of 1. A 15 day detailed Programme to develop 10 “internal experts” in TAC days training (Intensive TAC Programme for

Team Leads).2. Three 5 day sessions to provide a wider/related cohort of employees with an overview of TAC (Less detailed

Programme for shop floor staff).

Programme Course OutlineModule 1: Structure & Pillars of TPMModule 2: The Dynamics of TPMModule 3: People IssuesModule 4: ImplementationDeveloping Tasks & Schedule. Programme Trainer John Wynn.All modules will incorporate theoretical training (Classroom) minimum of 60%/ 70% of programme time.Learning Assignments, mentoring / coaching and action learning (project work to allow for application of new skills, etc.) –

30/40% of programme time

Lean Wage Costs Plan (General Training)

Name Title Salary €

No. of annual leave days

Daily Costs

EI Office use

Cost of Training

Total days training

TAC(Total Asset Care)

Black Belt

Green Belt

John Ryan Team Lead 20 0 0 0 0 15

Joe Fox Operative 20 0 0 0 0 5

LEAN TRANSFORM Training Type / Expected Duration

Type of Training Days/Range

Root Cause Analysis 3 to 7

Kaizen 2 to 7

SMED 2 to 5

Quality Circles 4 to 15

5S 1 to 3

Kanban 2 to 5

Value Stream Analysis 4 to 10

Lean Intro (White Belt) 0.5 to 1

Yellow Belt 1 to 5

Green Belt 5 to 15

Black Belt 20 to 50

OEE (TAC) 10 to 20

Type of Training Days/Range

Andon 7 to 20

KPI's Performance Measurement 2 to 8

Flow Mapping ( L. Bal.) 3 to 10

TPM Lean Maintenance 10 to 20

Six Sigma 10 to 20

Lean Management & Leadership 7 to 20

Business Improvement / Lean Strategy 2 to 8

ERP/MRP (User) 3 to 5

ERP/MRP (Lead SP) 10 to 20

ERP/MRP (Super User) 15 to 30

Lean Audits 3 to 5

Train The Trainer 3 to 10

Lean Training Record

TRAINEE: TRAINING RECORD

Employee Name: Employee Role:

ActualTraining Dates

Training Module Description Net Training Hours Trainee signature

Trainer signature

Lean Projects to 10/4/14 & Target Numbers for 2014

* A= Approved Projects to 10/10/13 ** T = Target Number for the year

Food Food

PED Micro Enterprise, Small Business And Potential Exporters

ITSSP Internationally Traded Services & Software

Scaling Scaling and HPSU

MGSC Manufacturing, Global Sourcing and Competitiveness

CCSS Construction, Consumer & Support Services

Lean Offers

CCSS Food ITSS&PP M&C PED Scaling Total

A* T** A T A T A A T A T A T

Start 3 22 1 15 0 17 10 34 1 1 3 16 91

Plus 1 4 1 15 3 10 6 14 0 0 1 11 44

Trans-form 0 0 1 11 0 4 1 4 0 0 1 2 20

Total Nos 4 26 3 41 3 31 17 52 1 1 5 29 155

Capturing LEAN Project Metrics

• Importance of doing it:

• A measure of the Value of the Lean Business Offer

• A Measure of the value to the companies

• Impact on competitiveness

• To justify the State’s continuing investment in Lean

Enterprise Ireland ‐ Lean Programme Uptake

Lean Projects Uptake

0

50

100

150

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Pilot-2009

2010 2011 2012 2013(todate)

Years

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0100200300400500600

Tota

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“Lean Works” ‐ Impact of LeanStart

Figures based on 59 Completed Assignments

• Total reported savings ………..€4,503,000 • State Investment …………….….€295,000• Total Spend by companies …..…€371,700• Average Saving ………………..….€76,000

Savings Reported from Lean Start Projects

0

100

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600

Individual Company

Thou

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“Lean Works” ‐ Impact of LeanPlus

Figures based on 12 LeanPlus Assignments

• Total reported savings ………………€2,033,000• State Investment ………………………€301,000• Total Spend (companies & State) ….. €636,000• Average Saving ………………………..€169,000

LeanPlus - Project Reported Savings

0

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100

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200

250

300

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500

Individual Company

Savi

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K)

“Lean Works” ‐ Impact of LeanTransformLeanTransform → significant management & staff training

→ to embed continuous improvement capability → across all business areas.

Examples of Impact One case described their Transform project as “Game Changing” e.g. Closing a plant in the UK and transferring production to Ireland. Others Reported

savings and benefits of over €10 million. €3.9 million increased profitability from their Lean efforts. Savings of over €600,000, secured extra business, increased employment and saved unnecessary shift premia due to increased

capacity during the day shift. Impact of the “Lean Business” approach (Lean in the Administration, Procurement and Warehousing areas,) & not just a “Lean

Manufacturing” approach.

In summary • LeanTransform projects return benefits in the order of many hundreds of thousands of Euro to millions. • Companies also report increased

– employment, productivity, – yields and – capacity increases.

(while Impossible to say that these results are being achieved purely through Lean activities, the companies report very positively on the contribution of Lean efforts to these results).

Lean Macro Impact

Company 1 Business Impacts In the 2 year timeframe since LeanTransform project commencement.

A review against 2012 ABR figures show: – Sales grew 208%– Exports by 319%– jobs by 164% and – €1.2ml saving on labour costs. – Gross Margin is strong.

The company see further strategic opportunities to expand lean to:– Design for Manufacturing– Logistics &– Supply Chain

these will further impact on Manufacturing costs & efficiency of support services.

This is a strategic imperative as labour costs are high in Ireland which could negatively affect the selected site of the New Product Platform. The NPP will embrace new product design, prototyping, manufacturing, quality, logistics and supply chain.

Lean and its accumulated benefits will be central to this strategic imperative.

Lean Micro Impacts

The Lean Transform in Company 2 (2010-2012) directly contributed to:

• 108% increase in shift capacity • 25% improvement in efficiency (resulting from the introduction & application of lean tools and techniques) • Labour Cost reduction of €300k in 2011• a further €300k annualised in indirect costs. It has also, through • increase in the capacity of the single shift, avoided circa €250k in 2011 alone in second shift premiums and

support costs.

The company has: • invested €1.3m in Lean Six Sigma external consultancy, • capital investment and • dedicated internal resources to a Project Management Office (PMO). • Developed management and key personnel in the lean concept and its application in-house, leading to:

• component management oversight• mentoring • training (WIP limits and output linearity, line redesign, line balancing, kanban & flow optimisation, revised

management operating systems & green belt projects).

This lean approach ensured that the company’s key goals and targets were successfully achieved, including the key metrics/impacts (outlined above).

Enterprise Ireland Lean Project Impacts ‐ Employment

Percentage change in employment for companies engaged in Lean Transform Projects

-60.0%

-40.0%

-20.0%

0.0%

20.0%

40.0%

60.0%

80.0%

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

Company

% C

hang

e in

Em

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men

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Lean Consultants Project Distribution 

Lean Consultants Projects Distribution

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20

30

40

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Proj

ects

Lean Leading Consultants 

Leading Lean Consultants

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s

Student Placements 

How can we do this?

Consultants Spring Forum 17 April 2014

• Feedback LeanTransform Summit

• Company Satisfaction Survey

• Consultant Quality Assurance

• Awards

• Action Plan for Jobs (APJ) 2014

• Group Sessions

• “Speed Dating”

Strategy & Plans 2014

• LEAN Transform Network- 2014- More FOCUS!!!

• Best Practice Visits Toyota plant Local & Overseas

• Focus on Environmental Competitiveness

• LEAN Educate Directory – Mary Bannon

• Benchmarking Companies before & after LeanTransform

• NSAI LEAN Swift Publication – Spread the Message!!!!

• Engineers Ireland – Lean Alliance – Dublin 29 April 2014

• LEAN Student placements

• LEAN Product Development - Limerick 13 May 2014

Speed Introductions

• Get to know each other• Some Consultancies may benefit from knowing others…..• 15 seconds to introduce yourself……key points!

Consultants Spring Forum17 April 2014

National Effort…..

• Forfas – Making it in Ireland, report Pillar A: Competitiveness-Lean & Benchmarking Pillar B: Innovation Pillar C: Internationalisation Pillar D: Collaboration

• National Productivity Step Change Initiative

Action Plan for Jobs 2014

Disruptive Reforms 2014• Entrepreneurship• Export Sales• National Step Change

Action Plan for Jobs – Table of ActionsExtracts relating to the Competitiveness Departments activities

Action Plan for Jobs – Table of ActionsExtracts relating to the Competitiveness Departments activities

Action Plan for Jobs – Table of ActionsExtracts relating to the Competitiveness Departments activities

Breakout Sessions After Lunch

– 1.45 – 2.20pm– 2.20 – 3.00pm

Topics suggested by Consultants fall into 3 categories

1. Non manufacturing lean2. Lean for IDA (Industrial Development Authority) & the LEO’s (Local Enterprise

Offices), formerly the CEB’s (County Enterprise Boards)

3. Benefits, hard and soft, finding time

Consultants Forum Spring 2014

Discussion

Questions & Answers

Consultants Forum Spring 2014

Break for Lunch

Lunch is provided in the glass walled room to the right as you exit the conference room

Breakout Sessions

– 1. Non manufacturing lean

– 2. Lean for IDA, LEO’s (Local Enterprise Offices)