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Alberta guide to productivity PDF

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Alberta II Guide to Productivity Now is t he best time to improve your productivity, helping your business to work smarter n a c hanging economy, Alberta improvement, system solutions and renewal companies have to be light on of the business model. their feet, working smarter, In these pages you'll find some great advice leaner and - above all — more productive- from other Alberta companies who've been ly. That might mean implementing lean there and done that. There are resources for the business philosophy, or it might mean beginner and tips that you can take away and addressing any of the five main zones apply to your business today. of productivity improvement: product What are you waiting for? Roll up your improvement, market extension, process sleeves and get s tarted. Learn to enhance your business's productivity. More than ever, you need the edge to last you through downtimes and see your business emerge stronger on the other side. in nn Welcome Alberta's competitive edge and financial well being depend on our ability to up the productivity factor. Here's your guide am pleased to invite you to read this first-ever publication about productivity, innovation and what they mean for Alberta industries and Albertans' competitiveness. Alberta is proving itself a l eader in the new Canadian economy, and we're working to show the world that our companies can compete with the best. By opening this booklet, you've taken a m ajor step to enhancing your company's competitiveness. Compare Alberta today with eadier times, and one fact stands out: Albertans live better. This is due to an entrepreneurial attitude and a s pirit by i mproving their productivity and innovation to achieve. Improvement to productivity across within their operations. industry has ensured that Albertans get more Albertans from all walks of life have shown goods and services from the effort they devote to they have the knowledge and skills to build our work, and that they secure economic progress and great province to become what it i s t oday. And earn bigger paycheques. The power of productiv- it's w ith this same energy that Albertans will grab ity has m ade Alberta more prosperous. hold of the freedom to create a new economy to benefit everyone. The Alberta spirit is c entral Let's put to rest the myth that productivity im- provement sis imply another way to have people to achieving the productivity and innovation work harder or longer. Improving productivity growth needed to secure the wealth and quality is a bout Albertans working smarter and taking of life for current and future Albertans. advantage of technology, innovation and invest- Once you've read through this booklet, I e n- ment to c reate products and services worth more courage you t o contact the productivity experts in in the marketplace. the Alberta government to see howyour company can benefit from this important work, and how In this guide, you'll find information on what productivity is a nd its importance to your you can join us on this exciting journey. I w ish you a most productive and profitable future. organization's success and how you can provide the leadership to bring your organization to the Honourable Iris Evans next level. You'll also find inspiring stories from five Alberta companies already realising success Minister of Finance and Enterprise PRODUCTIVITY SUMMER 2009 WWW.ALBERTACANADA.COM/PR0DUCTIVITY Contents PUBLISHER Ruth Kelly 4 Always a G ood Time... ASSOCIATE PUBLISHER Daska Davis The cost of a ny product falls over time, EDITOR Mifi Purvis COPY CHIEF KimTannas which means it's n ever a b ad time to ART DIRECTOR Charles Burke seek productivity gains DESIGNER Rodrigo Lopez Orozco PRODUCTION Betty-Lou Smith 7 Case Studies CO-ORDINATOR Meet some great Alberta companies CONTRIBUTING WRITERS David DiCenzo and learn from their journey to SRtaechpehla n iSei n gShp arks improved productivity 23 Get Fit, Go Lean Government Become a company that's adaptive, waste-free and with an engaged, of Alberta ■ efficient workforce 28 Rate Your Productivity Alberta's Guide to Productivity \s published for Alberta Finance and Enterprise by Venture Publishing: Take this self-test and assess where Venture Publishing Inc. your business is o n the productivity 10259-105 Street continuum Edmonton, AB T5J 1EV3 TEL: 780-990-0839 32 A Formula That Pays TOLL-FREE: 1-866-227-4276 Embarking on a p roductivity FEA-XM:A IL: 780-425-4921 [email protected] improvement is n ot necessarily a WEBSITE: www.albertaventure.com big c ash drain Contents copyright 2009 by Venture Publishing Inc. 34 By the Numbers Content may not be reprinted without permission. Productivity at a g lance Printed in Canada by Transcon Canadian Publications Mail Product Sales Agreement #40020055 ▼ publishing inc. Venture WWW.ALBERTACANADA.COM/PRODUCTIVITY SUMMER 2009 PRODUCTIVITY Always a Good Time. . . Take steps today to ramp up productivity in y our business so you can weather the recession and conrie out stronger rowth in productivity is c ritical As the Mills can tell you, in business it's a lways a g ood time to invest in productivity. Whether to remaining competitive," says Ray Mills, CEO and - with his there's a l abour crunch or a recession, you'll father - founder of Kudu Industries Inc., a want to find out how to improve output relative manufacturer of progressive capacity oil pumps. to resource input. That could mean maintain- "The cost of any product falls over time." It's a ing your current workforce and increasing out- simple pressure that manufacturers everywhere put through lean business practices, technology face. One of the most important realizations adoption or workflow improvement. Or it c ould Mills and his father came to was that compla- mean slightly less output for substantially less cency would be a d eath knell and that seeking input. At its k ernel, productivity measures how productivity was a c ontinuous process. At Kudu, efficiently an economy or a b usiness transforms he says, "processes are continuously improved, its labour, capital and raw materials into goods and services. inch by i nch, day by d ay, by r emoving waste." PRODUCTIVITY SUMMER 2009 WWW.ALBERTACANADA. COM/PRODUCTIVITY Don't Wait While productivity, like Kudu's Ray Mills says, is a constant process, there are steps businesses can take to improve it t oday. There's always some low-hanging fruit that can be plucked with little grief or cost. Productivity improvement helps you meet Can you see some places in your business that would benefit from starting productivity challenges facing Alberta's economy, includ- improvements today? j i ng a h igh dollar, increased material costs and Benchmark. Calculate your labour produc- ' a s lump in business. In these pages you'll find a r oadmap that will help you get s tarted on the tivity toe stablish a benchmark. Divide rev- road to productivity. enue byt he number of hours worked, which There are five key avenues of productivity im- equals output per hour. Start learning. Attend brown-bag lunches, provement available to you: product improve- ment, system solutions, process improvement, trade shows and conferences. Take produc- tivity courses online and read up. business model improvement and market ex- Ask for advice. Consultants can help with tension. We'll take a l ook at some companies production flow, plant layout and lean prin- who've trod the road before and learn from their ciples. Institutions such as SAIT and NAIT experience in these five key zones. And we'll offer productivity courses. look at h ow you measure productivity and how Keep it u p. Maintain your early gains and ! you can take steps now to earn gains in the short and medium term. seek sustainability. Appoint staff productiv- ity champions, and carve some time in t heir Whether it's through process improvements schedules to set the stage for success. such as lean manufacturing, outsourcing or in- Schedule regular meetings and consider vestment ina utomation, companies are looking investing in professional development to in- to best practices to be more competitive. Don't crease company literacy in productivity. be left behind. WWW,ALBERTACANADA.COM/PRODUCTIVITY SUMMER 2009 PRODUCTIVITY Resource Room Lean Enterprise Assessment Program: Get deeper into lean business practices with If y ou are new to productivity, the first thing this program. LEAP is a model for expansion you want to do is start learning. Check out into other areas of organizational assessment. these resources: Visit www.albertacanada.com/productivity/lean Innovative Manufacturing Works: to learn more. Learn more about manufacturing innovation in Automation and the Welding Process, Alberta. IMW promotes innovative companies by James M. Berge. As Berge says, your and best practices in manufacturing across competition is g lobal and you'd better develop the province with plant tours, productivity strategies to cope with new forces affecting improvement seminars and information net- your business. works. Visit www.manufacturinginnovation.ca. A Guide to the Automation Body of Construction Users Round Table: Knowledge, 2nd edition, by Vernon Trevathan. Measure productivity in t he construction Billed as a t echnical summary of automation for industry. Check out www.curt.org/pdf/ those who need a comprehensive perspective MeasuringProductivity.pdf. in t heir job. NAIT Shell Manufacturing Centre: With a Automation Unplugged, by Jim Pinto. mandate to help small and medium-sized "Industrial automation is not just one applica- manufacturing enterprises in Alberta, the tion," says P into. "The problems are always NAIT Shell Manufacturing centre offers a challenging and the results are rewarding." host of services. Navigate to Services, then The Goal: A Process of Ongoing Productivity Enhancement from www.nait. Improvementhy Eliyahu M. Goldratt, Jeff Cox, ca/26738.htm. and David Whitford PRODUCTIVITY SUMMER 2009 WWW.ALBERTACANADA.COM/PR0DUCTIVITY Case studies roductivity describes the out- put of g oods and services as they relate to the resources used in production. Nationally, with a one per cent rise in productivity growth, real income takes 72 years to double. With a t hree per cent rise, it t akes 24 years. Closer to home, productivity is a bout the future growth and well-being of your company. Beyond cost over sales, productivity accounts for in- put and output and their effect on your Productivity business. Improvement Zones For example, an increase in output value, adjusted for inflation, relative to the rise in Product improvement lets you become the number of workers is a r eal cost reduc- more competitive, creating new value for tion. But a cut in wages, without a c hange in your customer. Market extension adds new features or the number ofworkers, does not represent a gain in productivity. services for products to support custom- ers. Adapt products and services for new In a l abour shortage or in a r ecession, pro- markets. ductivity iys our key to competitiveness in Process improvement means streamlin- the marketplace. ing your business to become efficient Productivity gains can be realized in five and productive. It m akes workflow easier, key ways: product improvement, market faster and more accurate. extension, process improvement, system System solutions help you accomplish . solutions and business model renewal. your goals of selling and servicing great Each of the five companies profiled in the products. Rethink current systems or find following pages is a r eal-world example of new ways to solve problems. productivity improvement in Alberta today. Renew your business model and Read about their experiences and find tips to think about how you do business to pro- apply to your own business in the short and vide greater value for your customers. medium term. WWW.ALBERTACANADA.COM/PR0DUCTlViTY SUMMER 2009 PRODUCTIVITY Case studies Process Improvement: All Weather Windows PRODUCTIVITY SUMMER 2009 WWW.ALBERTACANADA.COM/PR0DUCTIVITY Process improvement: Streamline business processes, mailing them more productive, effective and efficient. Improving work processes makes throughput easier, faster, more accurate and reliable. HHHh hen All Weather Windows started A'A'fl operations in 1978, it h ad nine Bi^Bi employees. Three decades later, there are approximately 1,000 employees and All Weather Windows is t he country's largest pri- vately owned window and door manufacturer. But every business needs a tweak now and then. In November 2005, All Weather Windows' management team began to imple- ment al ean manufacturing approach. "Our ownership group felt we needed a c ultural change," says James Simon, the company's se- nior lean supervisor. Improving processes at All Weather Windows was a b ig part of the new direction. The main principle of lean manufacturing is getting rid of waste and adding value for the customer, so management needed to consult with its most important asset - the staff "We Another process change involved better recy- needed a process that would sustain the changes cling. "We're trying to create sustainable manu- we were considering, to be able to produce more facturing sot hat our materials are not going to without adding additional resources and equip- landfill," Simon explains. "What we're doing is ment," says S imon, noting that management we're capturing it a nd recycling it. W e've been also wanted employees to be intellectually stim- able to implement the Green Phase of our pro- ulated. "Al ot of the changes came from working gram, which is t aking ofi^ extremely well. We're recycling 100 per cent of our PVC (polyvinyl with the employees on the shop floor." Some of the changes implemented at All chloride) regrind. Weather Windows were simple. For instance, The results of A ll Weather Windows' process benches in the work area were tidied up and or- improvements have been significant. There has ganized tot he point where employees only had been a d ecrease in product defects and a corre- what was needed to perform day-to-day activi- sponding 98p er cent quality rate with its manu- factured items. ties -" nothing more, nothing less," says Simon, WWW.ALBERTACANADA.COM/PR0DUCTIVITY SUMMER 2009 PRODUCTIVITY 9 www.allweatherwindows.com Live it, B reathe it The key to improving processes at a business capacity planning and quality control and, quite is simple: commitment. regularly, company president Richard Scott. "There needs to be a 1 00 per cent com- "We have that support from the very top," says mitment from the top," says All Weather Simon. "It's walking the walk and talking the talk Windows' lean supervisor James Simon. every day, not rocket science. It's just working "That means that management is involved. with people to make things happen." They don't just take a book and say, 'You need Simon adds that given the volatile state of the to read this,' which happens so often." economy, these practices make sense and are Every morning at 7:30 a.m., the All crucial to a business's survival. Believing the Weather Windows management team gets message is imperative. together for a "gemba" walk, gemba being a "It's not just taking on the principles as a f ad," Japanese term that means "the actual place" he says. "It's living it, b reathing it a nd making it a - in t his case the shop floor. It's here that value part of the business, a part of what you do every is c reated. The group includes senior produc- day to improve. If y ou're not doing that now, then tion supervisors, the purchasing manager, chances are you're not going to be around to health and.safety personnel, employees from make those decisions in t he future." PRODUCTIVITY SUMMER 2009 WWW.ALBERTACANADA.COM/PR0DUCTIVITY

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Most books are stored in the elastic cloud where traffic is expensive. For this reason, we have a limit on daily download.