The Hardware Journal spoke to Paul & Derek Heavin, Topline Heavins & Euronics in Athlone about implementing their Lean Processes and how it has revolutionised their productivity and efficiency.
How did Heavins identify their initial need or problem?
We had found ourselves in a position where the level of business had grown beyond our operational capacity and current ways of working, and our colleagues were being stretched. This was significantly affecting the customer experience which was not at the standard that Heavins wanted to deliver.
How did Athlone Local Enterprise Office assist with a resolution?
The Local Enterprise Office suggested that the business may benefit from participation in a Lean for Micro programme and assigned Jigsaw Better Business, www.jigsawbetterbusiness.ie, to support with this. Lean for Micro programmes are designed to assist businesses in many different sectors and are an effective
way to address productivity and efficiency issues. We met with Mark from Jigsaw to scope the programme and agree the best approach to resolve the issues.
What were the initial actions to identify the issues?
Jigsaw Better Business worked alongside our Lean project team, comprising colleagues from each area of the business, and after some initial Lean training we began to “process map” the product journey, from ordering stock, goods receipt, merchandising and storage to selling and customer experience. Lean allows businesses to focus on their process and to understand the difference between “what they think they do” and “what they actually do,” and process mapping is a key Lean methodology which supports a business in achieving this understanding.
What did the process involve?
Lean has origins in Japan and has evolved from the Toyota Way where every process in car production is continually reviewed and improved to increase efficiency and productivity. Muda, Mura and Muri are three types of wasteful actions that negatively impact workflow, productivity and ultimately customer satisfaction.
On a typical Lean project, the team will work to understand the causes of these wasteful activities and develop solutions for their removal. This is done on the sales floor and in the warehouse where, through observation of the process, they identify the activities that are happening that are wasteful and do not add value.
It is important that the team are involved in this process as their engagement and participation are vital in achieving sustainable solutions.
Was this initially a daunting prospect?
This can be a challenging process and a business needs to consider the barriers to change that they may encounter, however by working with the team, seeking their input and encouraging their ideas, there was a great effort made by all of our colleagues to make it work. By including our colleagues in the process,
it empowered them to spot other areas of the business to be improved. Although there was initially some resistance, we trusted the process and we are reaping the benefits now.
How disruptive was the process?
The process required commitment from the company in terms of time and allowing the sessions to happen. However, the impact on the customer was negligible.
How long did the individual actions take to implement and improve your process?
Lean is about continual improvement, and every enhancement was achieved through gradual progress. The warehouse reflow for example was completed over a period of several weeks with each improvement incrementally building towards better efficiency and productivity. This approach ensures that we can
continue to serve the customer and minimise any impacts of the process on trading.
What resources had Heavins to provide in regard to time, people, finance?
The programme was generously subsidised by our Local Enterprise Office and businesses are only required to pay a nominal fee. Our biggest commitments were in facilitating the required changes to warehouse and storage layouts in terms of people and freeing up time away from the sales floor without comprising service.
Was there buy in from the staff initially and subsequently?
Our Lean team were engaged from the beginning and felt involved in the programme. As enhancements were made and changes implemented the wider team began to see and feel the benefits. The implementation of the enhanced and improved ways of working have resulted in a marked increase in colleague engagement and staff morale. The impact of this has been significant and to some extent unexpected.
Were there any issues peculiar to Hardware or Building Materials handling that were identified?
Lean thinking and the implementation of Lean can be applied in any sector. Our approach was to apply Lean and use Lean to increase our customer facing time, reducing task and maximising the time we get to spend with customers. In Hardware and Building Materials there can be a significant time dedicated to stock handling and our focus was to minimise this. Stock storage, merchandising and stock working routines are traditionally areas where Hardware and Building Materials businesses can use resources inefficiently, and Lean allowed us to understand where our opportunities for improvement were to be found.
How did Heavins measure the improvements?
For the different tasks that we applied the Lean process to, we measured the time it took to complete the process from start to finish. By reducing the cycle time, we improved efficiency and reduced waste. This resulted in cost saving and measuring cost savings helped us to determine the effectiveness of the Lean
initiatives.
What were the tangible improvements to the Instore business, Warehouse and the Online business?
The Instore Business – We improved our customer service by having the sales staff spend 100% of their time looking after the most important part of the business which we believe are the customers. Before Lean, the sales staff were processing some goods-in at the sales desk, so their heads were looking down at paperwork instead of heads-up looking out for customers. It is a simple thing, but it made a huge difference taking goods-inwards completely away from the shop floor.
The Warehouse – Goods now flow smoothly and travel less distance in the warehouse, this resulted in faster goods-in processing which allowed us to stop processing goods on the shop floor. It also means that the products are getting to the shop shelves more quickly which results in more sales. The warehouse is not clogged up with pallets anymore which led to less frustration in the warehouse.
The Online Business – As this is a relatively new aspect of our business, we are constantly learning and trying to improve the service for our heavins.ie customer. Applying the Lean Process allowed us to re-organise the layout of the online department which leads to cost savings on staff and faster order delivery for the online customer.
How did the Lean process change the Heavins business mindset?
The Lean process has allowed us to see the benefits of “asking why,” we don’t just accept things the way they are, we are more likely to challenge the status quo, and look to see if we can do things better, quicker or cheaper and increase value for our customer. When asking why, if the answer is “because we
always did it that way!” then you need to change the answer to “Is there a better way we can do this?”
How suitable did you find the Lean Process for your business in general and would you recommend the journey to others in our Hardware / Building Materials sector?
A lot of people believe the Lean Process applies only to the manufacturing industry and we found this to be false. It can definitely be applied to the Hardware / Building Materials sector, and we are proof of that. As we have said before, you need to trust the process, we had some hesitations at the start but once
we took the leap, we could see the improvements. What we also learned is that the Lean Process is a continuous process, it doesn’t just stop when the initial process is over, we are in the Lean mindset now and we use the principles on all aspects of our business. We would highly recommend the Lean process
to others in the sector, but don’t just do it for the sake of it, you need to embrace it. Any time you invest in Lean you will get back multiple times.
You can view Paul & Derek talking about uncovering their Lean Process on their YouTube Channel, Topline Heavins & Euronics @toplineheavinseuronics2993.
