Lean for Micros Pilot Review Robert Hernan January 2016

Lean Works * Lean Transform Significant savings Forfas Review of Enterprise Ireland’s Lean Business Offer Employment up an average of 11% Overall Programme Funding = €62.4m ( €17.8m - State, €44.6m - Companies ) Total productivity gains = €662 million Product & Service quality up 30% Delivery adherence up 43% Sales up 40% Sales per Employee up €37k =20% Productivity Improvement 6,029 people trained in programme 1,600 trained after programme 58% appointed Lean Champion

Lean for Micro 2014 – 2015 Timeline 2014 Action Plan for Jobs December 2014: Enterprise Ireland proposal to LEOs March 2015: Lean for LEOs Workshop 7 Regions: Galway, Limerick, Kerry, Cork South, Tipperary, Westmeath, Cork West Donegal Lean for Micro Pilot Start: April Finish: December 2015

Lean for Micro Funding : Total Project Costs €5000 / LEO funding €4000 Engagement: 5.5 days Service Provider paid by LEO office Application / Reports as per Enterprise Ireland Lean Business Offer Supporting Resources e.g. Information brochure, FAQ

Lean for Micro Companies: 12 Project Duration: 6 weeks – 5 months Consultancies: 8 Donegal 11 Companies Introduction to Lean Workshop (2 days) 5 x 0.5 days engagement One consultant

Pilot Companies Micro – Enterprises Measure 1 - Turnover 200k – 1000k Less than 10 employees

Lean for Micro - Process Step 1: Client submits application to LEO Step 2: LEO reviews and approves application Step 3: Client / Consultant agree and carry out assignment Step 4: Client sends final report to LEO / EI Step 5: Client submits claim to LEO, approved, paid

Lean for Micro – Tools and Techniques Applied Introduction to Lean Process Mapping / VSM Standardization / Standard Work Workplace Organisation (5S) Flow Kaizen (Continuous Improvement) Preventative Maintenance (Downtime Analysis) Overall Equipment Efficiency (OEE) Visual Management ERP Total Lean Business – Sales/Financial Analysis

Lean for Micros – Results Annual Cost Savings: Average: €41,000 Range: €8,600 to €151,000 1% to 25% of Turnover Output / Capacity: Average: 45% Range: 10% - 100%

Consultant Feedback Holistic approach – whole business Lean across all business sections All aspects of business including strategy, sales analysis, financial analysis…. Short intervention – half day Small Advantages: Cover a lot of small projects Flexible – react quickly to changes Big impact Disadvantages: Busy with the business – MD and workers Dominance of MD Very Positive - Challenging and rewarding

Company Feedback West Cork Vegetable Solutions “The course has made our organisation more profitable by reducing distribution costs, increasing production efficiency and personally showed me how to protect my profit margins” Unison “..standard methods and improved efficiency increasing ability to meet demand at a competitive price” The Scullery “Introducing Lean Manufacturing will give me the competitive edge I need to move forward to the next level of my business” RTR Electronics “..improved productivity and quality….developed a long term vision…..I was delighted with the results” Savvy Kitchens “The Lean project allowed us take stock of our whole operation and improve in a lot of areas” MedCo Ltd “It has been a compelling and very worthwhile exercise with a lot of positive learnings for the business”

Summary Action Plan for Jobs, 2014 Seven Regions Twelve Companies, Micro Enterprises, Different Sectors Eight consultancies Duration: 1.5 to 5 months VSM / 5S / Standardization Overall business Savings: €41,400 (€8,600 – €151,000) Output / Capacity: 45% (10-100%) Positive

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