Sparking change at Dix Welding
For Clinton Osborne, General Manager at Maryborough-based Dix Manufacturing Group, ‘good’ was never good enough.
Before it enlisted the services of QMI Solutions to improve the business, Dix already used a functional resource planning system to conduct transactions and manage operations; had a well-established quality assurance system; good safety records; and a stable workforce.
On all accounts, the business was in a good position. But Osborne and his management team wanted to take Dix to the next level.
After seeking QMI Solutions’ assistance in 2009, Dix has introduced a range of Lean Manufacturing best practice principles to advance the business towards a world-class standard.
Efficiency has increased through a workshop restructure; enhanced staff engagement; improved feedback channels; controlled audit systems; and waste minimisation.
Dix was established in 1959 as Dix Welding Works and in 2011 relaunched as Dix Manufacturing Group. It has two divisions: steel retail and workshop fabrication. The retail division supplies steel in various forms to its own fabrication division, and a range of clients and industries.
The fabrication division produces engineering and fabricated work for manufacturers. Dix’s relationship with QMI Solutions began in 2006 after several Dix employees attended QMI’s five-day ProEdge program. Three years later, Dix began one-on-one interactions with QMI Solutions through its supplier relationship with Downer EDI.
QMI Solutions had worked with Downer to advance its supply chain to a world-class standard. As a Downer supplier, Dix liaised closely with QMI Solutions to identify key areas that could, in the short term, improve the supply chain and, longer term, improve Dix’s own business processes.
Osborne said Dix always had competent structures, practices, accountability and transparency, but he knew there was room for improvement.
“We wanted to use QMI because we value our customers at Downer and wanted to fully satisfy their needs. But we also saw individual benefits for our business. “For us, it was not about making the business bigger, but making what we had better.”
Dix had sound practices in place, but they could be tweaked to increase efficiency. For example, QMI observed that Dix dropped its defect rate substantially and its delivery capability to clients is now exceedingly high.
Specifically since 2009, Dix has introduced the 5S system, Visual Performance Measures (VPM) and employees have participated in Leading and Managing Change training sessions.
Originally developed in Japan, the 5S Lean Manufacturing principle is designed to create an organised, effective work environment as a foundation for other best practices to prosper.
Through 5S, Dix restructured its retail and fabrication workshops. Equipment was sorted, ordered, maintained and standardised to increase efficiency.
Osborne said it was too soon to quantify and measure the 5S system’s impacts, but there were clear benefits. Savings were also difficult to measure now. “While at this early stage implementation costs outweigh savings, I’m sure that, over the next few years, we will have reduced costs.”
Employee satisfaction improved because of better work area conditions; accountability existed within work spaces; waste was reduced in terms of space, product wastage and time; safety standards improved; and regular checks and balances could be easily conducted during the audit process.
A visual scheduling board was introduced to optimise the accuracy and movement of materials throughout the workshop. “Most factories struggle to maintain housekeeping standards set by their proprietor or management. There are often many interpretations and different expectations of what standards are correct,” Osborne said.
Workshop area after 5S
“But the 5S system brings a very structured approach to an organisation and sets a common standard for all to follow.”
Osborne said it gave Dix a mechanism through which standards could be defined and aligned from management through to workshop employees.
“It increases employee participation because they can take ownership of their work areas to improve their own efficiencies. It is a robust system that allows managers to deal with today’s issues and actively introduce improvements.”
Dix has installed a display board as part of QMI Solutions’s VPM standards. It publishes meaningful outputs that have a direct impact on the company’s performance. Production efficiency, quality, labour use, delivery, 5S and safety results are displayed in a bid to directly influence staff activities on the shop floor.
Dix's Visual Measurement Performance board
Osborne said the VPM board gave staff easy-to-understand performance feedback; encouraged them to improve; created a platform for team problem solving; and provided clear indicators that led to ownership and transparency in the workplace.
“It provides timely, appropriate feedback that triggers corrective actions at the source and therefore limits production errors.”
Dix’s leadership team attended a Leading and Managing Change workshop to improve communication skills.
Osborne said it was hard for Dix to completely implement change in that area. Dix’s leaders had no formal business management backgrounds and approached the job in a technical way, so developing better personal interaction was a challenge.
“We found it easy to focus on introducing technical changes, but people management was a bit more difficult to implement.” He said Dix would continue developing that side of the business, with the help of QMI training, in the future.
In 2009 and 2010, Dix completed two Microscope benchmarking assessments through QMI Solutions to measure its practice and performance results. Both assessments put the business in the ‘contenders’ category of the performance-practice model. That meant it was running at 60% to 80% capacity of its performance and practice.
Dix will continue to work towards the world-class category, which requires it to run at more than 80% for performance and practice.
Osborne said Dix had not yet reached world class, but was on the way. “We will continue to drive the success of the organisation into the future, and develop and improve every aspect.”
The QMI consultant observed Dix already has made significant advances. “It has been very gratifying on a personal basis to have worked with Dix and seen the level of commitment to transforming the business to world class.”
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