Kaizen – Kaizen is Japanese for "change for the better" or "improvement". A business philosophy of continuous cost reduction, reducing quality problems and delivery time reduction through rapid team-based improvement activity. Kaizen is all about moral training, encouraging people to clean up their worksite and to improve their production targets.
Kanban – Kanban is a Japanese word for "sign". Kanbans are typically a recorder card or other method of triggering a pull system based on actual usage of material. Kanbans are attached to the actual product at the point of use. Kanban cards have information about the parts (name, part number, quantity, sources, designation, etc) but cards, boxes and electronic signals can also be used. Squares painted on the floor to indicate storage or incoming areas are frequently but mistakenly referred to as 'kanbans'.
Lean Manufacturing – Lean manufacturing is a business practice, characterised by the endless pursuit of waste elimination. A manufacturer that is lean uses the minimum amount of manpower, materials, money, machines, space, etc, to get the job done on time.
Government Grants For SMEs
Types of businesses that can apply for a Business Evaluation
The Entrepreneurs' Infrastructure Program has commenced, with Business Evaluations being offered over 11 industry groups.
Within each industry group, there is a fairly wide segment of individual types of businesses that are eligible to apply. In this edition, we are commencing an overview of the various types of businesses that are eligible to apply, under the various industry classifications.
To be eligible to apply for a Business Evaluation and, subsequently, for a Business Growth Grant, the business must be conducted by a company or a company acting as trustee of a trust.
• Minimum turnover of $1.5 million, maximum turnover of $100 million.
• Applications can be made by any Australian-based company that provides or has the capacity to provide defence-specific goods or services in a supply chain, which leads to a Department of Defence, either domestically or internationally, is eligible to apply.
Energy, Water and Waste Management
• Minimum turnover of $1.5 million, maximum turnover of $100 million.
• This category applies to:
- businesses that provide services for the generation of energy from renewable and low carbon sources;
- businesses that supply equipment and technology use and to reduce energy demand or increase energy efficiency; and
- businesses that provide services in waste management, recycling, environmental assessment, monitoring and remediation.
• Minimum turnover of $1 million, maximum turnover of $100 million.
• Applies to businesses that provide services through:
- Visual Arts
- Performing Arts
- Software Development
- Interactive Content
If you're operating a business which, you believe, may be eligible for a Business Evaluation, please contact us and we'll make contact with the Entrepreneurs' Infrastructure Program's business advisors. We'll continue this eligible business overview next month.
Everyone Has 1,440 Minutes A Day
Time is one of those things which cannot be expanded, however it can be better managed. Every one of us has 24 hours or 1,440 minutes per day. Some business people are better managers of their time than others. Business people need to allocate the number of hours per day that they are prepared to spend at work and then prioritise how they are going to spend that time.
Managers need to consider a lot of things when allocating time covering:
• technical issues:
• management issues:
developing new products and services
raining and development
How do you better manage your time? Here are some suggestions:
• Establish daily and weekly priority goals/"to do" lists. Mark off the task when it's completed and periodically prepare a log sheet of the amount of time you spent on various tasks.
• Control the telephone. Do not allow the telephone to control you. Perhaps you could have messages taken during the day and then have very specific time allocations to return telephone calls (e.g. one in the morning, the other in the afternoon). Have a "quiet period" each day so you can use the "quality time" to plan your daily activities and business strategies.
• Consider and analysis those persons or tasks that cause you to waste time. Can you change your management style to overcome these time wasters (e.g. it might be better if you visited others in their offices or business premises rather than meeting in your office?) The visitor can close the meeting and basically leave.
• Meetings. All meetings should have an agenda and should start and finish on time. At meetings, ensure that minutes are taken and distributed and follow these up at the next meeting. If this type of activity continues at all meetings it will speed up the process.
• Delegate. Is there anything currently on your desk or work area that could be delegated to someone else in the organisation?
Management of time is essential if you wish to be successful in business. Effective management involves planning, delegation and eliminating bad time wasting practices. Remember, everyone is allocated the same amount of time each day. How you effectively spend it will have a significant impact on how you perform as a business person.
Elimination Of Waste Is A Key Management Challenge
Waste is defined as anything within the process, people or structure that is wasteful, including space, time, parts, people's potential and more. Management needs to observe what's happening on the workshop floor, shop floor, office, hospital, surgery, etc, to get a full understanding of the potential for waste reduction. There's no use worrying about tomorrow when you cannot identify today's waste. Businesses need to monitor the way the business is operating so the entire team develops the ability to observe waste in the workplace. Customers ultimately won't pay for waste. The business strategy should be to eliminate waste, improve customer satisfaction and improve profitability. It's generally accepted that there are seven major waste areas. These are:
Over production is caused by producing goods over and above the amount required by the market. Getting ahead of demand results in extra raw materials, labour and storage being utilised. There's a greater chance of damage, deterioration or obsolescence.
• operator waiting for components or materials;
• waiting for instructions; and
• waiting for set-ups or changeovers of production flow;
• parts queuing, waiting to be processed.
• waiting for breakdowns to be fixed;
Management should ensure that when allocating where a job is to be set up, consideration has been given to the next job at that location, particularly if the location allocation is going to involve excessive movement around the workshop.
Inappropriate or excessive processing, which does not add value to the customers. Performing work that provides no additional value to the customer.
Excess inventory increases costs. For example, cost of capital tied up in materials, extra handling, consumes materials that could be used for customers' orders.
Any movement that is not adding value includes the movement of parts and operators walking from one station to another to find materials or tools and equipment.
Costs involved in rejects or reworks, downgraded products and refurbished items. Can the work process be changed to reduce defects to nil? Management should be closely examining the quantity of defects each day and mentoring the team members on how to reduce the quantity of defects being produced.