Bowler introduced QMI Solutions to BioMérieux Australia because he had used the Queensland Government-sponsored support organisation in a previous position. He knew an external adviser was needed to help rebuild BioMérieux and improve its market position.
Preparation area before 5S
Initially, QMI conducted a benchmark exercise. It measured BioMérieux's practice and performance results to determine the company's effectiveness. The process has since been replicated annually to plot improvement.
Benchmark scores of more than 80% for practice and 80% for performance place an organisation in the world-class category. Those scoring between 60% and 80% for performance and practice are labelled contenders. In early 2009, BioMérieux achieved 66% for performance and 67% for practice, giving the company a clear goal to aim for improvement.
QMI Solutions also implemented a communication building program. "This initial stage was about teambuilding, and creating a team environment that did not previously exist," Bowler said.
"The key was to build staff engagement and satisfaction. Staff turnover had to improve if any system was to be rolled out."
Preparation area after 5S
In 2010, QMI Solutions helped BioMérieux implement the lean manufacturing 5S system, which is designed to create an organised workplace as a foundation for other best practices to prosper. "That stage was about increasing our manufacturing efficiency and capabilities," Bowler said.
5S was developed in Japan to establish basic discipline and order in the workplace. It creates an effective work environment by logically organising the work area and is a platform for introducing lean manufacturing techniques.
Bowler said improvements from 2009 to 2010 were amazing. The cost of ineffective and inefficient activities (non-quality costs) reduced by 44.3%; consumer complaints reduced 49%; and average manufacturing cycle times dropped by 12%. Staff turnover dropped from 160% in 2008 to 13% in 2010.
Before QMI Solution's involvement, the manufacturing process took 14 to 21 days, but that has now dropped to four days. BioMérieux has reduced warehouse stock, meaning more money in the bank. Over two years, the company saved $132,000 in non-quality costs alone.
In 2010, QMI again benchmarked BioMérieux to plot its improvement. It achieved a rating of 68% for performance and 73% for practice, compared to its 2009 results of 66% and 67%. While it is still in the contender category, BioMérieux is quickly working its way towards being world class.
Bowler said BioMérieux would continue to work with QMI Solutions to improve the company. In 2011, it plans to implement further lean manufacturing processes.
He is considering introducing Six Sigma, a business management strategy that aims to improve the quality of process outputs. It identifies and removes causes of defects and minimises variability in manufacturing and business processes.
Bowler said it was vital QMI continued to support BioMérieux Australia in its rebuilding process. He said the support kept competition alive and meant BioMérieux continued bringing business into Queensland.
Currently, BioMérieux faces two competitors in the Australian market, one based in New Zealand and the other in South Australia. Bowler estimated BioMérieux's market share at 40%-45%; the South Australian competitor 35%-40%; and the New Zealand competitor and hospitals accounting for about 20%. "It is important we continue to grow so we can remain competitive."
In bigger organisations, internal politics could make it difficult to get changes approved. "Using an external, government-funded body, like QMI Solutions, makes introducing change a lot easier."
Bowler said in smaller organisations, managers sometimes understood the theories for improving efficiency, but that didn't always help.
"You can have all the theory in the world, but that means nothing if managers don't know how to apply it to their business. QMI plays a coaching role on how to apply the theory."