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Context / Scope of project
Our client was a big part of a western Defence force, managing millions of transactions per year as well as all major bases for armed and non-armed forces. Recent years of underperformance meant that they needed to save billions of dollars within the coming decade. PIP was asked to support the introduction of Lean principles and methodologies which included training, identification of initiatives and support on improvement initiatives.
Client achieved:
- Trained over 300 defence personnel in Lean and additional 30 personnel in how to implement Lean in a sustainable way
- Redefined and optimised 4 key processes which resulted in:
- reduction in number of steps needed to be performed by 50% (with identical service level)
- reduction of time needed to do the work of up to 40%
- reduction of lead time towards customers of up to 80%
- a significant improvement in quality
- a potential to reduce costs by 28%
- Potential to save $5 million within one of its key processing hubs by bringing in 50% additional work with no additional personnel and with little additional cost. Key improvement ideas to make this possible where developed including a detailed implementation work plan
- All improvements lead to significantly clearer roles and accountabilities which helped the organisation in further improving the business. This work was key, since there had been a decision to reduce the number of regional sub-areas by more than half.
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What we did:
The work was lead by a small PIP team and involved a cross section of key staff from operations (front line to team leaders), quality/improvement department and management. The following work was undertaken:
- Developed defence specific training material that included work books, videos and games. Held the trainings in 5 different locations for personnel coming from across the different States
- Developed Value Driver Trees to find and analyse key value and cost drivers. This work included detailing who works where and does what
- Developed Value Stream Maps for all key processes of current state and future state of working
- Analysed key problem areas and ran Idea Generation sessions to develop new solutions and future ways of working
- Developed a work plan with a recommendation on how to capture the potential.
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