1. In Progress Queensland

2. Upcoming Events March 13thCIWG – OH&S at Bluescope; (920 Nudgee Rd. Banyo) Free to members and guests 13&14 th RCA problem solving; Townsville 25% discount to members 20 th CIWG – OH&S at Parmalat; (35 Boundary Str. South Brisbane) Free to members and guests 22&23 rd Ron Moore – Reliability Leadership; (Novotel Brisbane) 25% discount to members 28 th Leaders Roundtable – Key Personnel Strategies Port of Brisbane Visitor Centre I seat free to members and guests Feedback required on agenda items for balance of 2012 please

3. Agenda 9.00amSafety Brief (site representative) 9.05amIntroduction to waste elimination – quick change over - Presentation by Gary Practical application of waste elimination - Presentation by Nufarm 10.30amMorning Tea 10.50am Factory Tour - High lights of waste elimination on the Nufarm site 12.15pmLunch 12.45pmWaste elimination workshop - Discovery and documentation of what we have learnt 2.00pm Close

4. Lean – Waste Elimination

5. LEAN Tools A model implementation is like building a house …… Start with the foundations Progressively work on building quality into the products and processes Ensure that processes are developed to eliminate waiting and queuing Through effective education, involvement and leadership the people have the capability to make this happen and develop a culture for continuous improvement

6. LEAN Pillars Quick Change Over-Can also be referred to as Single Minute Exchange of Dies (SMED); subject of today Single Piece Flow-Very small or single production runs versus large batch mentality, allowing significant flexibility to meet market demand Pull-Manufacturing system where production is based on market demand not manufacturing capacities (Push). Ensure that processes are developed to eliminate waiting and queuing

7. Quick Change Over or SMED (Single Minute Exchange of Dies)

8. Concept developed by Shigeo Shingo for Japanese Automakers in the 1950s SMED - The aim is to reduce change over times and increase frequency! What is SMED? Shigeo Shingo “Are you too busy for improvement? Frequently, I am rebuffed by people who say they are too busy and have no time for such activities. I make it a point to respond by telling people, look, you’ll stop being busy either when you die or when the company goes bankrupt.”

9. The time from the last good piece produced at the standard production rate to the first good piece produced, again, at the standard production rate. Run Down Stopped Ramp Up Time Rate Changeover Time Lost Production Change Over Time

10. SMED is commonly used on the shop floor, but can be applied to any process…. SMED – Key Outcomes More Frequent Changeovers Customer Satisfaction Reduced WIP Reduced Lead Time Improved Quality Increased Profitability Reduced waste Increased Capacity Increased Flexibility

11. 3 2 1 45 Product A Product B Identify Classify Convert Streamline Measure, Monitor & Standardize No cost Low cost Five Step Method

12. Quick Changeover Activity Sheet # 1 2 3 4 5 6 7 8 InternalExternalActivity Elapsed Time Taken Go to office for paperwork2.35 3.27Unbolt and remove fences Unbolt and remove guard Unbolt and remove cutters Go to tool room new cutters Set cutters into position Adjust into cutting circle Bolt fences into position 3.54 4.32 6.45 7.29 7.45 8.47 155 sec 52 27 38 133 44 16 62 Step 1 – Identify Activities

13. Document Process Flow

14. Quick Changeover Activity Sheet # 1 2 3 4 5 6 7 8 InternalExternalActivity Elapsed Time Taken Go to office for paperwork2.35 3.27Unbolt and remove fences Unbolt and remove guard Unbolt and remove cutters Go to tool room new cutters Set cutters into position Replace guard Bolt fences into position 3.54 4.32 6.45 7.29 7.45 8.47 155 sec 52 27 38 133 44 16 62 Step 2 – Classify Activities Classification Internal activities can only be performed when the process is stopped; while External activities can be performed without interrupting process and maintaining standard outputs.

15. Ask WHY 5 times Bring an independent person into the process to question every activity Step 3 – Convert Internal to External Activities

16. Quick Changeover Activity Sheet # 1 2 3 4 5 6 7 8 InternalExternalActivity Elapsed Time Taken Go to office for paperwork2.35 3.27Unbolt and remove fences Unbolt and remove guard Unbolt and remove cutters Go to tool room new cutters Set cutters into position Replace Guard Bolt fences into position 3.54 4.32 6.45 7.29 7.45 8.47 155 sec 52 27 38 133 44 16 62 Step 3 – Convert Internal to External Activities

17. Can an activity be streamlined through? Elimination Reduction Simplification Running in parallel Teamwork Combination Step 4 – Streamlining Activities

18. Management Principle “If you can’t measure it, you can’t control it.” Changeover Principle “If you don’t measure it, you won’t repeat it” Step 5 – Measure, Monitor, Standardise

20. Current Changeover Time Targeted Time Change Over Time Shadow board Standard Fasteners Hard Stops Quick Release Guards Layout Program Accessibility Implementation Step 5 – Measure, Monitor, Standardise

21. SMED is a process for achieving waste reduction or elimination, through documentation, brainstorming and standardisation; producing significant improvements in: Customer satisfaction Decreased lead times, increased flexibility, improved quality Employee satisfaction Increased efficiency, lower downtime, better work environment, lower operator risk Financial returns Lower downtime, increased capacity, reduced WIP, reduced stock holding, waste reduction Summary

22. Lean - Waste Elimination Nufarm’s approach to waste elimination!

23.  Tony Your Presentation will go in here….. 23 Waste Elimination

24. 24 Factory Tour  Host to give run down on safety requirements for the factory tour….

25. Lean – Waste Elimination Key points from today Breakaway group activity

26.  Get foundations right first  Engagement of employees/management  Change over matrix  Identify waste streams/pie chart  Waste audits  Ecobiz network grants  Sustainability model (pacia)  5 whys – “look outside the box”  Different approach to lean  True cost of waste elimination  Communication critical  Break down tasks Key Points From Today

27.  SMED Activity  Split into 2 or 3 groups  Complete a basic SMED exercise to reduce the waste factor in a simple activity or process which you may have seen today or may currently be an issue in your workplace.  Utilise the 5 steps methodology  Brainstorm ideas on how to reduce or eliminate waste  Document the process and positive outcomes  Present and share with the group Exercise (Group Activity 30 mins & Presentation)

28. Exercise (Team A – Liquid Fill Line) Quick Changeover Activity Sheet #ActivityElapsed Time Time Taken (Seconds) InternalExternal 1Retract spill tray2 2Lower nozzle8 3Fill10 4Raise nozzle8 5Extend spill tray2 Total45 Options Retract as you fill Pressure fill Sterac nozzles Parallel fill

29. Exercise (Team B – Bottling & Labelling) Quick Changeover Activity Sheet #ActivityElapsed Time Time Taken (Minutes) InternalExternal 1Check Paperwork2 2Collect Labels5 3Retrieve empty bottles3 4QC check2 5Adjust machine10 6Run sample0.5 7QC test2 Total24.512.512.0

30. Exercise (Team B – Bottling & Labelling) Activities Items 2 to 5 – Complete while previous job is running Item 6 – Standard settings, visual colour code, label toolkits, shadow boards, work instructions & training Item 7 – As is Item 8 – Rapid adjust guide Time reductions 0 -7 0 -2 Additional considerations Improved scheduling Measure conformance Root Cause Waste – eg. Categories & time