Saskatchewan Economic Developers Association

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Saskatchewan Economic Developers Association

• Scott Summach Manager,
• Manufacturing Team, Saskatchewan Industry
  Resources

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Saskatchewan Industry and Resources

• Saskatchewan Industry and Resources
  (SIR) co-ordinates, develops, promotes and
  implements policies and programs of the
  Government of Saskatchewan that strengthen and
  diversify the Saskatchewan economy.
• The department has a twofold role to offer
  direct programs and services to individuals and
  businesses, and to play a role in coordinating
  economic development activities among other
  departments and agencies.

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Manufacturing Team

• Today, I am here to speak about three
  initiatives undertaken by SIRs Manufacturing
  Team
• Lean Thinking
• Corporate Procurement
• Industrial Regional Benefits

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I. Lean Initiatives

• Since 1999 SIR has introduced manufacturing
  companies to Lean Thinking.
• We work with individual companies as well as
  national organizations like the Canadian
  Manufacturers and Exporters (CME) that have
  developed consortium building and lean enterprise
  expertise.

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Lean Thinking

• What is Lean Thinking?
• Simply put, Lean Thinking is a focus on
  eliminating waste so that all processes in the
  total system, process, or production line add
  value from the Customer perspective.

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Why Become Lean?

• In todays global marketplace with a high
  Canadian dollar and trade border issues,
  companies must become more competitive.
• The application of Lean Thinking will reduce
  waste, improve productivity, and give companies
  that competitive edge needed to survive.

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Who Can Become Lean?

• Lean Thinking is applicable to all businesses and
  organizations. You do not have to be a
  manufacturer or processor.

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The Lean Drivers

• Lean Thinking
• Employee Involvement

Customer Success

• Flow
• Elimination of Waste

• Tools to support people and process

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Quality Processes Quality Results
Inconsistent Process
Inconsistent Results
Traditional People doing whatever they can to
get results
Consistent Process
Desired Results
Lean People using standard process to get
results
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The 5 Principles of Lean Thinking

• Define value from the customer perspective
• Identify the value stream
• Make the process flow
• Pull from the customer
• Head toward perfection

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7 Forms of Waste

• Overproduction
• Waiting (time)
• Transporting
• Inappropriate processing
• Unnecessary inventory
• Unnecessary motions
• defects

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The Lean Journey

• Should begin with Value Stream Mapping every
  process in the company from the first customer
  contact to the delivery of the product is
  examined to determine its value to the process
  and how it can be improved.

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Success in Lean

• There are many Lean resources available.
• Lean Training is not a one time course, but must
  be a corporate long term commitment.
• In our experience companies have a greater chance
  of success by working together.

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Lean Consortiums

• The Manufacturing Team works with Saskatchewan
  companies to form consortiums of manufacturers
• The Saskatchewan Consortium of Manufacturing
  Excellence
• The Northern Saskatchewan Consortium of
  Manufacturing Excellence and
• The South Saskatchewan Manufacturing Consortium

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Saskatchewan Consortium of Manufacturing
Excellence

• Canada Post
• Cover-All Building Systems Inc.
• Doepker Industries
• Industrial Machine Manufacturing Inc.
• Bourgault Industries
• Schulte Industries Ltd.

• DSI- Thiessen Team
• MIFAB Mfg
• Northern Steel Industries Ltd.
• Vanguard Inc.
• Precision Metal Fabricating Ltd.

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Northern Saskatchewan Consortium of Manufacturing
Excellence

• SED Systems
• International Road Dynamics
• Dawn Foods
• Siemens Laserworks

• CNH Global
• Hitachi Canadian Industries
• Norampac
• Standard Machine
• Combine World

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South Saskatchewan Manufacturing Consortium

• Brandt Industries
• Canada Post
• Dumur Industries
• Dutch Industries
• Stewart Steel Inc.
• Ralph McKay Empire
• Watergroup Companies Inc.

• Precision Industries
• Conserva Pak Seeding Systems
• Raider Industries
• Sasko Windows and Doors Inc.

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Training Courses

• Training begins with Value Stream Mapping
• 16 VSM spots available to businesses in
  Saskatchewan for 2006-2007. Subsidized training
  cost is 2,500 per company for 8,000 worth of
  training.
• Lean 101 and 5S courses being held in Swift
  Current, Moose Jaw, Regina, Estevan and Yorkton.

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Results

• Some results from our Consortiums
• Reduce Inventory by 56
• Decrease bank debt by 50
• Deliver product in 10 days rather that 2 months
• Engineering time reduced to 2 hours from 2 weeks
• Space requirements reduced by 35
• Space requirement reduced by 200
• Productivity increased by an average of 55

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Results

• Travel time reduced by 75
• Process time reduced by 82
• Inventory turns increased by 40
• Production time reduced by 40
• Gross Margin increased by 105
• Product Cycle time decreased from 4 weeks to 24
  hours
• 6 fold increase in throughput

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Results

• No finished good inventory all goods pulled by
  customer and shipped the day of manufacture
• On time delivery 96.1
• 25 decrease in manufacturing inventory
• Cultural change from traditional manufacturing to
  scheduling based upon product pull
• Staff are involved with the production process
  and allowed to make necessary changes.

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II.Corporate Procurement Committee

• The Manufacturing Team chairs the provincial
  Corporate Procurement Committee (CPC)
• The CPC consists of members from major
  Saskatchewan corporations representing the
  Crowns, the private sector, and government
  departments.

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CPC Mission Statement

• The Mission of the Corporate Procurement
  Committee is to promote Saskatchewan economic
  growth by developing quality, competitive
  suppliers of goods and services in Saskatchewan.

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CPC Goals and Objectives

• To maximize Saskatchewan content in the
  acquisition of goods and services
• To increase awareness of Saskatchewan supplier
  capabilities
• To encourage the export of goods and services by
  Saskatchewan suppliers

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CPC Goals and Objectives

• To identify opportunities to Saskatchewan
  suppliers
• To maximize Aboriginal content in the acquisition
  of goods and services
• To encourage the implementation of Quality
  Assurance Programs by Saskatchewan suppliers.

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CPC Action Plan

• Meet as a committee five times per year
• Share information on suppliers, new products,
  success stories, and Saskatchewan content
  statistics
• Visit supplier facilities in conjunction with
  meetings

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CPC Action Plan

• Prove information to SIR to maintain databases
  i.e.. Manufacturers Guide
• Share information on policies and programs
• Promote the selective use of offset counter trade
  agreements to support Saskatchewan suppliers.

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CPC Success Stories

• Hitachi Canadian Industries manufacture of wind
  towers for SaskPower
• Del-Air manufacture of pedestals for SaskTel
  and SaskPower
• Country Leather manufacture of leather gloves
  for SaskPower

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CPC Meetings for 2006

• March 9 Saskatoon
• April 27-28 Estevan
• June 15-16 Nipawin
• September 21-22 Moose Jaw
• November 16 Regina
• Interested in presenting to CPC? Call us.

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III. Industrial Regional Benefits (IRBs)

• Federal government policy designed to bring high
  tech and highly skilled work to Canadian
  companies and educational institutions.
• Winners of large defence contracts must spend the
  contract equivalent in Canada either directly in
  the form of suppliers to the project or
  indirectly, through research and investment in
  high tech areas.

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Prospects

• Further investment in MEMs beamline
• Investment in IT training for First Nations
• Investment in Aircraft Maintenance Engineer
  Training
• Visiting Scholar program for Lean Manufacturing
• Supply contracts for Saskatchewan manufacturers

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SIRs role

• The Manufacturing Team of SIR works with
  Saskatchewan companies and institutions to find
  opportunities with international aerospace and
  defence companies that have IRB obligations.

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Defence Spending

• Projected defence spending is 20 billion over
  the next 5 years!
• Tremendous opportunity for Saskatchewan companies
  and educational institutions to explore this
  market.

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Trade Shows and Conferences

• CANSEC Defence Industries trade show Ottawa
  April 5-6, 2006
• Western Aerospace Alliance, Campbell River, BC
  May 2006
• Atlantic Canada Aerospace, Security and Defence
  exhibition Sept 2006

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Manufacturing Week

• Province will proclaim Manufacturing Week May 29
  June 2
• Events include
• keynote speakers on innovations in manufacturing
  
• Lean manufacturing seminars
• Manufacturer open houses in Regions

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Conclusion

• The Manufacturing Team would like to work with
  you to grow and expand our manufacturing sector.
  Please contact us for further information on
  Lean, the CPC, IRBs or anything else related to
  manufacturing.

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Manufacturing Team

• Scott Summach, Manager
• Manufacturing Team
• [phone]
• ssummach_at_ir.gov.sk.ca

• Colleen Mackenzie
• Business Development Mgr
• Manufacturing Aerospace Defence
• [phone]
• cmackenzie_at_ir.gov.sk.ca

• Monique Lischynski
• Business Development Mgr
• Manufacturing
• [phone]
• mlischynski_at_ir.gov.sk.ca