The workers were sorted into teams and assigned responsibilities accordingly. Workers were also offered rewards for putting in best efforts towards fulfilling their responsibilities. This helped in motivating the staff, a critical component in today's business context. Motives help in providing a reason for the staff to act in more efficient manner. On the other hand lack of the motivation can actually result in distorting the working environment.
The five elements of 5S included Sort, Set, Shine, Standardize and Sustain. Once the workforce realises that the management is indeed quite serious about sustaining the business the long term, they too start connecting their future with efficient functioning of the company. During the years prior to 1999, no positive motivation was in sight for the workers. The lack of any positive motivation by the managers often results in an automatic provisioning of negative motivation. But the 5S adopted by management helped in changing this attitude.
From the year 1995 to 1998 the staff turnover ratio is consistently on an increase. Workers appears to have given up and considering it a sinking ship the workers getting opportunities elsewhere thought it fit to leave at the first available opportunity. This is reflected in the incremental percentage of the staff turnover. This leads to increase in costs as once a set of trained staff leaves, a new process for recruiting is required to be taken up. The new incumbents take some time to familiarise themselves with the work and working environment. This affects the production levels and efficiency of the respective departments.
In 1999, it appears in the initial months, the percentage of staff turnover had been on the rise, but after the motivation thoughts and positive signals sent in by Geoff, this trend stopped.
Subsequently during the period 1999 to 2003, the impact of a visionary leadership is quite perceptible on the working style of the staff. This has not only resulted in lowering in staff turnover ratio, but it has also helped in making the functioning more cost effective. The small profit is the outcome of such efforts.
d) Examine how waste would be reduced by introducing JIT and Six-Sigma.
JIT Approach: The concept of JIT or Just-in-Time is another revolutionary concept from the stable of Japanese management style. In this style of functioning the inventories were recharged or ordered when the management felt the need for it. This is possible when the teams in different departments adopt a coordinated approach duly supported by the management. Each department sends across its requirements to the centralised ordering system while so that the inventories are not required to be kept for longer periods. This results in multiple benefits like;
i. The company is not required to store the items for