Skills Victoria Corporate

State Government of Victoria


Burra Sheetmetal Goes 'Lean' for 15 per cent Productivity Increase

Advanced Technology Training Capability Alliance and Burra SheetmetalBurra-Sheetmetal

When Korumburra-based Burra Sheet Metal faced the considerable disruption of moving to new premises, it decided this was the best possible time to introduce lean manufacturing to its 15 staff.

The decision proved to be the right one, as productivity increased by 10 to 15 per cent in less than three months, making overtime almost unnecessary, says Simon Lane, Project Officer at Swinburne University’s Centre for New Manufacturing.

"If a company is moving to a new location, there's no better opportunity to implement new ideas," Mr Lane said. "Everyone works to the same goal, and there’s a tangible deadline. But if there’s no end point, things can simply drift on." Burra Sheet Metal's decision to go 'lean' was heavily influenced by cost pressures and lead-time to delivery that were making it increasingly difficult to remain competitive.

"Relocation gave us the opportunity to sort out problems which we’d had for years, and didn’t want to reproduce in the new factory," Director, Fred Clark said.

"Our target KPI of 12 days lead time has been reduced to five days, and inventory stock has reduced. Our margins have also improved." All management and shop floor staff in this closely-knit Gippsland company participated in training, which involved five units from the Competitive Manufacturing Training Package.

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Last Updated: 18 June 2009