How to become a Best Factory

1. 5S as a foundation From Six Sigma to value stream mapping there are many stars in the continuous improvement team. But to borrow a sporting analogy, 5S is like a goalkeeper – without it, you have no platform for the other players to perform on. "If you don't start with 5S, you will have an impossible job," says David Fox, chairman and CEO of Power Panels, a multiple Best Factory Award (BFA) winner. Good housekeeping eliminates waste, helps control inventory and create a more productive working environment, according to Best Factory alumni. The biggest barrier, as with other branches of CI, is workforce buy-in, adds Fox. "We had five attempts over 10 years and we made all sorts of mistakes. I even had a petition from the shopfloor to the tune of, 'What's all this business about us tidying up? Why don't you get a cleaner'." Only then did Power Panels stop issuing edicts and start involving individuals. It was the start of a process that, so far, has resulted in seven BFAs, thanks in part to the company's rigorous focus on the fifth and most difficult S, 'sustain'. 2. Empower your people Rivals can use the same improvement tools as you, the same processes and identical machines, but one ace up your sleeve is your people. Employees are the ultimate USP, according to Gary Winstanley of 2010 Best Factory winner Siemens Mobility. "The only thing that really can make a difference is the culture of the people that work for you and how you get them to contribute." Tapping into people power is not an exact science, adds the Siemens chief. "There's no easy answer. It's everything you do everyday to keep them involved and engaged, treating them fairly and rewarding them for their contribution to making you successful. " So when Siemens was shortlisted for a BFA, senior management made sure the shopfloor were on the top table at the awards finals. Other winning sites have put on BFA parties for employees unable to attend. Suddenly entire factories start to feel good about themselves and what they do, leading to further performance gains. Recognition is the rocket fuel of Best Factories. 3. If at first you don't succeed... Few factories conquered at the first attempt. Disappointment and frustration are the hallmarks of many first-time entrants. What marks out the champions is their ability to use the benchmarking report provided by Cranfield as a launch pad for improvement, says BFA judge Mike Sweeney. "Why are more companies successful the second time round? Hopefully the benchmarking data has been used and it's a stimulus for change." Bury the report in your bottom drawer and you might as well not have entered, says Richard Cook, production and personnel director at AEESEAL. "We're very open to criticism and that's not easy because I don't like being told I'm wrong or that I don't have the best factory... But if you can take on board the feedback than you can secure maximum advantage from it." 4. Training Fail to train and you can't expect to gain. The average amount of time successful factories spend training staff has doubled from five to 10 days since 1994, according to Cranfield's Sweeney. The elite have intensive commitment to skills development through apprenticeships, NVQs and more informal coaching, he reveals. Winners also link skills development to career paths, Sweeney adds. The technique provides a virtuous circle: employees over-achieve and add value; the company becomes more successful and grows. 5. Change Life on the factory floor follows the same rules of the Serengeti. Slow movers will be caught by a predator. "Change is the norm in our businesses today," says Sean Madden, UK supply chain manager at Diversey. "When we're standing still that should be the surprise." Businesses must develop a ruthless streak to see through strategies on the shopfloor, he advises. "Be crystal clear on what you want to do. Train your staff give them all the tools and the environment to perform, but don't let anybody stand in your way. We can't afford to accept those who fight change at every step." No matter how grand your plans, success won't happen overnight, concludes Sweeney. However, there are some quick fixes: "Try to select projects where you can see quick results. You'll get good change in these areas and that will be the message that wins over the rest of the organisation." Find out more of the secrets of success from previous Best Factory Award winners at the 2012 Best Factory Conference. See www.bestfactoryconference.co.uk