Final Conference – ERIP SME case study The German experience

1. Final Conference – ERIPSME case studyThe German experience Jens Mehmann Prof. Dr. Thorsten (ERIP Project Manager) • Hochschule Osnabrück • Institut für Management und Technik • Am Wall Süd 16 E-Mail: t.litfin@hs-osnabrueck.de • 49808 Lingen URL: www.mut.fh-osnabrueck.de

2. Authors and Institute German Project Partner Case one – Lean Production SME – Grimm SME – Siems SME – Bley SME – Sport Import Case two – Lean Administration SME – L-Druck SME – Duo Collection Conclusion Overview

3. Jens Mehmann: Research Assistant ERIP University of Applied Sciences Osnabrueck, Department for Management and Engineering, Prof. Dr. Thorsten Litfin: Project Manager ERIP University of Applied Sciences Osnabrueck Department for Management and Engineering • University of Applied Sciences Osnabrueck: • Faculty of Agricultural Sciences and Landscape Architecture • Faculty of Engineering and computer science • Faculty of Economics and Social Sciences • Faculty of Management, Culture and Technology • Institute of Music

4. German Project Partners Organizations and Institutes Testing SMEs ERIP – A strong project with different branches and a lot of experiences

5. Case one – Lean Production Grimm Branch of industry: Metal processing Employees: 66 Contact: Oliver Grimm • 1. Workshop in the production: • Purchasing of a new storage system in the cutting area. • Independent introduction of additional lean elements like KANBAN… • 2. Workshop in the administration • Development of a matrix organization with responsibilities • Improvement of the processes by increasing the transparency • Challenge: • Introduction of lean management methods in the production • Analysis of business processes in the administration

6. Case one – Lean Production Siems Branch of industry: Window production Employees: 90 Contact: Uwe Siems • Establish and maintain a workplace organization in the production area of the end stop • Independent introduction of workplace organization in the administrative areas • Constant focus on process improvement through team leader rounds, company visits, etc. • Continuation of self-improvement measures • Total Logistics Analysis • Value stream analysis in the production • … • Challenge: • Introduction of lean management methods for workplace organization in the production

7. Case one – Lean Production Bley Branch of industry: meat and meat products Employees: 230 Contact: Rolf Bley • Construction of a storage structure • Definition of ordering and provisioning processes and development of an action plan • Optimization of the storage locations using ABC-clustering • Challenge: • Introduction of lean logistics and the lean change methodology for SME in the company,

8. Case one – Lean Production Sport Import Branch of industry: Bicycle wholesale Employees: 55 Contact: Ralf Fischer • The transit time in the goods receipt has been reduced by 10% • Based on process analysis are numerous optimization potentials identified and measures have been defined • Gradually more departments will be optimized • The change agent is driving independently further optimization measures • Challenge: • Introduction of lean management methods for workplace organisation Results:

9. Case two – Lean Administration L-Druck Branch of industry: Printing Employees: 55 Contact: Thomas Ihnen • Reduction of cycle time in an administrative process of 16 hours to 2 hours. • Independent introduction of a kanban card in the paper logistics • Introduction of standards in the production, as well as in the administration • Permanent focus on process optimization for the responsible persons • Direct cost savings as part of improvement initiatives • Challenge: • Analysis of business processes between two locations

10. Case two – Lean Administration Duo Collection Branch of industry: Wholesale Furniture Employees: 10 Contact: Jan Steinhoff • All employees could be illustrated the process • Based on an information structure analysis the e-mail traffic is very transparent • Integrated a lot of standards for the workflow optimization • Development of an electronic data exchange with suppliers and customers (currently, approximately 80% of invoices are transmitted via EDI interfaces) • Challenge: • Transparent representation of the processes and staff training in the methods of Lean Administration

11. General: Effective methodology for resource saving in the SME The ERIP Lean change methodology works in the production as well as in the administration Different branches can work with the methodology The companies can learn from each other A lot of SMEs have a high potential to modify the processes Conclusions Experiences: • Contact Persons and Change Agents are needed in the companies • The commitment of the Management is elemental needed • Different companies have different potentials • The self-initiated implementation is necessary and the key to a sustainable implementation • SMEs need projects like ERIP

12. Your questions please?