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5S and Visual Management for Returnable Packaging Service Centres
Client: Leading Global Returnable Packaging Company
Location: Australia and New Zealand
Our client is a leading global provider of returnable packaging solutions including pallets and returnable plastic containers. Its packaging products are refurbished at service centre operations. The refurbishment process is relatively simple, but processing volumes are extremely high, the product is very bulky and the work is relatively messy and risky. The low skilled nature of the work also leads to a low level of worker engagement and pride.
The TXM Solution
Our client was focused on developing pride in performance and engaging its Service Centre employees in continuously improving safety, housekeeping and operational performance.
The project (which is ongoing) initially involved five service centres in Australia and New Zealand.
The implementation was based on the proven TXM Lean Daily Management System LDMS ™ approach. This involved initially implementation of 5S to improve housekeeping and set a standard for how the workplace should be organised and maintained. It was important in this environment to understand the sources of dirt and clutter and address these. Visual standards and weekly audits were established.
5S was then extended with visual management with visual management boards established in the service centres tracking key metrics. These became the focal points for daily meetings to discuss performance and solve problems using the TXM Solving Problems Every Day SPED ™ methodology. In some plants one point lessons and visual work instructions were used to address problem areas. In one sites 5S was extended to achieve visual control of maintenance spare parts.
The service centres all achieved significant improvements in housekeeping and workplace organisation. Safety performance was already outstanding, before TXM involvement, but sites were able to achieve a further improvement in Incident rates of up to 30%. Productivity was increased by up to 20% and other cost drivers such as truck waiting times and quality issues were significantly reduced.
Most importantly employees enjoy a safer and cleaner workplace and are more engaged in improving operation performance. Front line leaders now have effective tools and empowerment to control their day to day operation, improve safety and solve problems in their area.