LEAN EDUCATION AND APPLICATION NETWORK PROGRAMS

377 Dr McFETRIDGE (Morphett) (18 February 2008).

1. How have the 'Lean Education' and 'Application Network' programs benefited business?

2. What is the cost of implementing these programs and how have taxpayers benefited from their implementation?

The Hon. K.O. FOLEY (Port Adelaide—Deputy Premier, Treasurer, Minister for Industry and Trade, Minister for Federal/State Relations): The Department of Trade and Economic Development (DTED) has advised the following:

Since the announcement of the LEANetwork by David Simmons in March 2007 and subsequent launch in June 2007, a number of programs and initiatives have been delivered within South Australia that have provided significant benefits to the organisations and individuals involved. The purpose of the LEANetwork is to contribute to the improved viability of South Australian business and industry through the adoption of lean principles.

The Network itself is a formal grouping of both local and International entities, consisting of:

The South Australian Department of Trade and Economic Development (through the SA Centre for Innovation)

University of South Australia

University of Adelaide

Cardiff University (Lean Enterprise Research Centre).

The Fraunhoffer Institute (Stuttgart)

Specific benefits derived from the LEANetwork to date are:

Attraction and delivery of the globally recognised Lean Thinking Course to South Australia with over 40 participants already progressing through the program. This program is delivered by Cardiff University and includes delivery from world leading experts such as Professor Peter Hines and John Bicheno. This program has also been delivered to a number of departments within the South Australian public sector.

A suite of Toolbox courses have been developed and delivered to over 170 participants within various industry sectors. These courses provide resource and cost effective mechanisms for industry to learn the basic Lean skills from. The toolbox sessions cover five major topics to date and are delivered ‘on demand'.

Over eight case studies have been developed in conjunction with South Australian organisations, all showing genuine benefits to the operational sustainability of those businesses. The case studies cover a number of different industry sectors (from food, viticulture, tourism through to general manufacturing and furniture making). The case studies are further utilised via Awareness sessions where the projects are presented to local industry as examples of how to implement Lean and the results that can be achieved.

A series of lean starter programs are currently under way to engage South Australian SME’s in the Lean processes and outline the advantages they can gain from this approach. These programs will be run both in Adelaide and the regions and will include between 5 and 7 companies per group.

Fraunhoffer Institute’s Innovation Audit program has been piloted within South Australia and the LEANetwork is currently looking towards developing further Fraunhoffer input.

A Lean Supply Chain program has been developed and delivered on two occasions, involving 11 local companies. The program has provided participating organisations with detailed insights into their manufacturing efficiencies through the experiences of other companies.

Cost of the LEANetwork to date is approximately $80,000 net. This amount includes a significant amount allocated to set up costs for a number of the aforementioned programs. A number of the programs offered are delivered on a full cost recovery basis and this is included in the above amount.

Benefits to Taxpayers include:

Increased viability of South Australian manufacturers leading to both sustained employment and an increase in employees in a number of companies that have worked with the Network.

Improved sales and profits within companies that have directly worked with the Network.

Development of Lean champions in South Australia, which will filter through the State’s manufacturing industry to provide increased capabilities at the management level.

Increased general awareness of the techniques that directly improve the performance of businesses.

Attraction to South Australia of world leading institutes and practitioners who have already begun to raise the profile of the state in the field of Business Excellence.