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E. Th. GTZ – ASDA/George Pilot Project Productivity and Social Enhancement Project. L. an. Center. g. Bangladesh. D. C. Presented by: Charles Dagher March 29, 2010. Canada – Singapore – Sri Lanka. DCG Library. The Project Productivity and Social Enhancement.
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E Th GTZ – ASDA/George Pilot Project Productivity and Social Enhancement Project L an Center g Bangladesh D C Presented by: Charles Dagher March 29, 2010 Canada – Singapore – Sri Lanka
The Three Overall Objectives The three overall objectives of the project were to: • Increase productivity levels at selected Asda/George suppliers in Bangladesh • Ensure that productivity gains are shared fairly with the workers • Sustain project outcomes at supplier level
Growth with Improved Results Minimal Capital No Additional Personal
Three Pillars - Growth Three key philosophies must be integrated 1 Certainty Center of Gravity 3 Certainty 2 Company Stability Customer First Employee Satisfaction Purpose, Philosophy & Values Partnership, Practices & Principles Competitive price Just In Time Consistent Quality Inputs Outputs Embrace Company Values, Community Family Environment ID with Company Supporting Processes Working Together
The Challenges Our main goals were: To transfer knowledge to a core team in each factory, To create a learning environment amongst workers and other staff members, and To act as facilitator in driving change in the organizations. Each goal required the effective engagement of people. As such, the consultants were faced with a number of challenges which required a well-thought out and creative approach in order to reach these goals. Some of these challenges included: • Workers Security • Team Spirit and Mutual Respect • Worker Involvement • Pressure to Achieve Immediate Results
The ChallengesWorkers Security A significant portion of the workers employed in the Bangladeshi apparel industry do not really contribute to the direct value-added in production and are classed as helpers. Therefore simplifying practices and processes will lead to the possible loss of employment for many workers. Asda/GEORGE has guarantee continuity of orders while unnecessary workers are being trained to carry out value-added activities designed to enhance productivity, maintain overheads and ultimately reduce costs. Suppliers must committed that no person will leave their employment during the project implementation, and that all unskilled workers displaced are either trained to operate a sewing machine or move to another line should a vacancies occur.
The ChallengesTeam Spirit and Mutual Respect The apparel industry in Bangladesh is dominated by a military-like management system with strict rules. Line workers and other staff members are disciplined and controlled rather than supported and encouraged. Breaking down walls and developing a team spirit concept requires a holistic approach. It is extremely important – and difficult – to change attitudes and culture.
The ChallengesWorkers Involvement Senior management in Bangladesh apparel factories have little confidence in locally trained line workers, engineers or office staff. Unless all employees are empowered with the right to bring in new ideas – individual ways of redesigning processes that affect that employee – and then putting those ideas into practice, change will not occur. Real gains can only be realized if workers are fully involved in continuous improvement. This is where the value of specific knowledge comes into play. Moving from traditional production lines to a just-in-time (JIT) team concept will only be complete when all workers have been involved in all aspects of the continuous improvement culture.
The ChallengesPressure to achieve immediate results Bangladeshi Management often expects immediate results during the improvement journey. A zero-waste environment requires the even support of many pillars which must each be constructed to last. It takes time and effort to achieve the correct corporate strategy and complete overhaul of the workforce culture. Trial & Error Culture: Another challenge is convincing management that learning by making mistakes is a valid way to teach workers.
But It is Not Easy, to Improve It requires a whole-systems approach that creates a culture in which everyone in the organization continuously improves processes and practices. In Summary, It is different way of thinking and approaching work & life.
Lean Culture: Kaizen Mind In order to achieve real sustained improvement in the pilot factories, it is important to improve incrementally and simultaneously in all areas from dock to dock along with administrative area. A Lean structure supported by many pillars can still collapse if some of the pillars on one side are weak, but it will remain strong if support is evenly balanced among all pillars.
Our Commitment To replace Factory management techniques of yesterday by more efficient methods that greatly minimize waste, reduce costs, lead time and improve quality bringing in maximum value to customers. In turn, to ensure productivity gains are shared fairly with the workers. To shift the business culture and mindset from Functional Management to Value Thinking and from Make & Sell to Sense & Response. All this requires an entirely new business mindset.
Strategic Approach – Action PlanWhat’s blocking Financial Performance?
Step 1: Clarify Goals and Commitment to Change Establishment of a project steering committee Appointed project champion on full time basis To create a common voice and to align the company’s top management to common objectives, a training session was held and simulated activities were initiated “learn and apply”. Further to the training, the project’s deliverables, methods of measurement and its expected scope were defined
Step 3:Assess Current State We have covered the following areas: • Materials & Information Flow • Processes and Practices • Management Support System
Disruptions in Flow due to Complexity Complexity Kills, Scale it Back, Make it Simple and Let it Flow Simplicity is the ultimate sophistication Leonardo di Vinci
Elements of Complexity Mura: Inconsistency, Non-standardization destroys reliability & predictability. no.2 Muda: Waste Is elegance enemy no. 1 Muri: Overload Overload limits productivity, functionality, & effectiveness that discomfort or injury results. (Stress, Push, Overburden). no. 3
Root Cause of Complexity Lack of standardized work increases the variation and chaos in a process and thus yields inferior results
Step 4: Design Improvement Plan leading to Future State In this step, the participating factories learned how to see operations as an interrelated set of activities, connections and flows instead of individual parts, tools and people. Instead of only addressing change in a specific area, our approach proposed changes affecting overall management concepts and manufacturing processes. Milestones chart was developed.
Step 5: Mutual Agreement on Achievements At the conclusion of Step 4, DCG held individual factory management briefings in the presence of GEORGE and GTZ representatives where it reported on any necessary adjustments which needed to be made before proceeding to implementation of the pilot project. A list of key performance indicators (KPI) to be measured at the beginning and the conclusion of the project and a work calendar were proposed and agreed upon with management. A target potential for each KPI was also given.
Step 6: Reorganization of Manufacturing Area Optimal Lean manufacturing benefits cannot be achieved in a workplace that is cluttered, disorganized, or dirty. We then carried out 5S floor mapping, whereby all unnecessary items and inventory as well as disorganized areas and zones are identified. We then determined what visual displays were necessary at each factory in order to organize the workplace. This led to the elimination of unnecessary space, labor and items. Finally, to ensure that this activity would be sustained, we put a 5S committee in place with members from management and workers.
Step 7: Open Communication and Awareness Campaign The communication with workers included comments related to why change is needed, how change will impact on workers’ social benefits, the drawbacks of the factory’s current practices and identifying what obstacles are blocking the way to change along with the roadmap. After the project roadmap was presented, volunteers were identified and formed into trial concept teams in every department from cutting to finishing. The pilot project awareness campaign also included regularly scheduled short communication sessions to convey the why, what, who, and how of the Lean initiative.
Step 8: Developing Talented Workers The purpose of this step was to develop practical knowledge and skills amongst the workers, supervisors and team leaders prior to the implementation of any changes. Teams were formed and a training calendar was set.
Step 9: Implementation of New Concepts and Practices • Enhancing Labor and Machineries Utilization Teamwork led to maximized labor utilization and improved lead times. Many Lean tools designed to standardize work and enhance labor utilization were introduced and implemented. • Enhancing Workplace Organization (5S) and Visual Management In a visual factory, the entire workplace was set up with signs, labels and color-coded markings such that anyone unfamiliar with the process can, in a matter of minutes, know what is going on, understand the process, and see what is being done correctly and what is out of place. Visual displays related to work methods; quality, cycle time, WIP levels and Kanban replenishment signals were employed.
Step 9: Implementation of New Concepts and PracticesAchievements
Step 10: Continuous Improvement Policy Deployment
Step 11: Support Concept Multi-functional Factory Management Team approach
Step 12: Reward Pilot Members Workers were further motivated as they gained bonuses. In some of the participating factories, an additional bonus system for creativity was established.
Step 13: Overall Evaluation Once all the steps were completed, in the final month of the project a 25-day time separation was made between the factory pilot project team and the consultant/facilitator allowing the former to carry out their new functions and practices independent of consultant intervention. Then the consultant returned on-site to observe continuity and correct for any deviation in methods and set-ups as well as for further streamlining of all aspects of continuous improvement. After the evaluation and correction, an overall strategic plan was drawn up for rolling out the pilot project into the rest of the company.
