SHOWING THE VALUE OF IMPROVEMENT!

THE CLIENT

Australia’s largest port services organisation, operating in over 40 locations throughout Australia and New Zealand. Services provided include port, terminal and supply chain logistics. The organisation works hard to provide a quality service, underpinned by the values of Safety, Customer, People & Teamwork and Performance.

THE PROBLEM

The client’s site was focused on improving its cost base in order to continue being competitive and to win new contract work with clients. The site employees had many ideas for improvement, however to achieve the benefits, individuals within the dispersed work teams needed to have a way that allowed the ideas to be captured and discussed.

THE GESTALTIX® SOLUTION

The work teams followed the approach in the Improvement 123 Add Value kit to identify opportunities that would eliminate the ‘8 wastes’ within the workplace. Over 163 improvements were identified, the outcomes went way beyond expectations, with significant monetary savings and associated gains in productivity and workplace safety.

Add Value activities resulted in:

  • identification of over $1.1m in direct savings, with $900,000 of these implemented within 3 months
  • Improvements identified included savings in areas such as:
    • $100,000 in eliminating hire of external site services
    • $200,000 reduction in equipment repair costs by preventing damages
    • 20% reduction in the number of forklifts used on site
    • 20% reduction in equipment off-hire expenses
  • Customers visiting the site commented positively on the simple, visual approach used to involve staff in the capture and tracking of improvements.

“In term of “Direct Savings” there have been initiatives identified of $1.1m. $900,000 of these have actually been implemented, and the benefit being seen so far in the P&L is $200,000. In addition to this there are other potential “cost avoidance / other” initiatives of $400,000.” (General Manager Finance)”

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