Meeting the Challenge of Rising Costs and Skills Shortage in the Australian Rail Industry

1. Meeting the Challenge of Rising Costs and Skills Shortage in the Australian Rail Industry Bede Boyle, Jim Laird and Michael Minns Synergy Management Consulting Group

2. Our paper is presented in two parts Part A – Meeting the Challenge of Rising Costs 1 Effective Corporate and Business Strategies 2 Business Risk and Opportunity Management 3 Change Management Mission Critical Skills 4 Lean Six Sigma – Doing More with Less Presented by Bede Boyle

3. Our paper is presented in two parts Part B – Meeting the Challenge of Skills Shortage 5 Skills Shortage – A Big Picture View 6 Managing the Situation – Strategy Development 7 Developing a Highly Productive Workplace Culture 8 Company Branding 9 Case Study Presented by Michael Minns

4. Challenges for the Rail Industry The Australian Rail Industry is suffering from the cumulative impact of rising capital and operating costs compounded by a critical skills shortage We will focus on how Lean Six Sigma can build capacity and capability to simultaneously meet the dual challenges of cost increases and skills shortage

5. Achieving More with Less Resources The rail industry needs tosimultaneously improve productivity and reduce costs Achieving More with Less Resources is perhaps the industriesgreatest challenge This is really the management dilemma – “How can I achieve more with less?”

6. Achieving More with Less Resources Process Management will deliver the best $ value for investment & will entail four steps: • Develop aprocess focusto identify value-adding and non value-adding processes • Measure and Benchmarkprocess performance • Design and Implementprocess change • Deploy Improvement Initiatives measured againstbenchmarks

7. Process Management BU BU BU Process Management framework, methodology and tools Processes Processes Processes 6 • Outcomes: • Satisfied customers • Good image in market • Loyal employees • Reputation as socially responsible • Friendly to environment • Profit Stakeholders’ view of process Control process outputs to achieve process outcomes

8. Six Sigma Six Sigma ™ is a means of measuring and managing processes toconsistentlydeliver outcomes that meet customer expectations It most importantly holds the dual promise of: • improving productivity and reducing costs • whilst up skilling the organisation

9. Six Sigma Methodology Define Measure Analyse Improve Control SIX SIGMA Method

10. Developing Six Sigma Capability Six Sigma Capability is developed by progressing participants through three levels of Six Sigma projects which deliver increasing Operational, Financial and Strategic benefits to the enterprise

11. Developing Six Sigma Capability Level 1 – Six Sigma Learn-by-Doing transfers problem solving skills to key people who Learn-by-Doing on Real Projects Level 2 – Six Sigma Projects achieve sustainable improvement in core processes that are identified by management as constraining operational performance Level 3 – Lean Six Sigma Projects drive process simplification to impact the bottom line by eliminating non value adding activitiesin core and support processes

12. Thank You Bede Boyle – Director Synergy Management Consulting Group boyle.bede@synergymcg.com Free Six Sigma briefings www.synergymcg.com