Best practices mean best performance at ENAP
Brisbane-based Engineering Applications' success drew it to seek out QMI Solutions for assistance. The business had experienced exceptional growth, but its systems and processes struggled to keep up with its expansion.
Engineering Applications (ENAP) HR & OHS coordinator Shane Peacock said the business had advanced from a small to a medium-sized business, but had not adapted its work environment to support the growth.
"We realised updated systems and processes were needed if we wanted to keep growing."
He said managers had been working so hard to achieve positive developments in the business, there was no time for them to work on the business.
After seeking QMI Solutions' assistance in 2010, ENAP began upgrading its workshops. Within 12 months, the company had improved housekeeping, efficiency and employee engagement.
ENAP began in 1979 with two employees. By 2011 it had grown to more than 120 employees, including engineers, draftspeople, boilermakers, fitters, machinists, sheet metal workers and administration staff.
ENAP is an engineering design, fabrication, installation and maintenance group that works with a broad range of industries, including food production and processing; manufacturing plants; grain and feed stock; chemical processing; steel production; coal handling; and asphalt.
Its Hemmant site comprises two fabrication and assembly workshops, a sheet metal workshop, and a machine shop.
ENAP initially completed two benchmarks with QMI Solutions - the Manufacturing Microscope, which measured manufacturing operations, and the Probe for People and Leadership, which assessed cultural issues. Both self-assessment tools are designed to highlight strengths and weaknesses.
The Manufacturing Microscope benchmarking assessment measured and compared ENAP's practice and performance. It put the business in the 'contender' category, which meant it was running at 60% to 80% capacity for performance and practice.
Compared with other companies in the sheet metal work sector, the business was five points ahead in practices and one point ahead in performance.
"We were performing well and our growth was substantial, but there were areas that still needed improvement," Peacock said.
Although equipment was grouped by type and the workflow was unrestricted and logical, the benchmark said the workshops had some constraints.
"After looking at the results, we selected three key areas to address – training and development; health and safety; and quality assurance. We have focused on these over the last 12 months."
Peacock said implementing a 5S program had gone a long way to tackling ENAP's weaknesses. 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. The concept involves logical, but not always obvious, changes on the shop floor —sorting equipment, setting it in order, shining or properly maintaining it and standardising and sustaining the approach.
He said 5S had been introduced into two workshops so far. "Our housekeeping has improved, efficiency is up, and employee engagement is better. Neater workspaces improve working conditions, which has really boosted morale."
Health and safety improved because equipment was organised, and materials no longer cluttered the working spaces.
Peacock said 5S had helped address potential problem areas. "We are now aware of potential problems before they impact efficiency. Problems still crop up, but we now have a framework to identify them."
But ENAP still has a long way to go. "We are very much in the implementation stage. The 5S system is only about 30%-40% complete, so we aren't yet able to measure the changes."
ENAP's Probe for Leadership and People benchmark, completed in March 2010, assessed performance and practice for leadership and culture; employee development and involvement; and work organisation.
It identified weaknesses in ENAP's leadership skills development and employee involvement. Following QMI Solutions' assessment, ENAP's leadership team, including senior managers, undertook a leadership workshop. "Enhancing our leadership team's skills will, hopefully, increase the level of employee engagement," Peacock said.
ENAP has completed two audits to track improvements with 5S. The audits gave each component - sort, set, shine, standardise and sustain - a ranking out of four. Between May 2010 and January 2011, its 'sort' rating improved from 1.0 to 2.5; 'set' from 0.7 to 2.4; 'shine' from 1.5 to 2.5; 'standardise' from 0.5 to 1.5; and 'sustain' from 0.1 to 0.8.
Peacock said ENAP would continue working with QMI Solutions until 5S was fully introduced across the entire business. "Quality assurance is the next thing on our agenda. We will also consider introducing other lean manufacturing principles in the future.
"We are too busy to close down a work area to fully implement changes in one hit. Instead, we have decided to target specific areas, one at a time."
Peacock said QMI Solutions had shown ENAP different ways to do things. "It has heightened our awareness of best practice principles. We now know what processes are available to help increase our efficiency and quality."
He said QMI Solutions had the ability to help any business, no matter how successful, by increasing and updating current processes for greater efficiency.
"All managers should aim to continually improve the business, and QMI Solutions has the expertise to help managers do that," he said.
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