The TXM associates were great to work with and added significant value to our business operations” 

The Challenge

SCHÜTZ DSL is a respected leader in reuseable industrial packaging throughout Australia and South East Asia. The business manufactures and supplies the world renowned SCHÜTZ ECOBULK range of IBCs (Intermediate Bulk Containers), large plastic drums, and provides a comprehensive range of bulk packaging products and services.

Since establishing IBC production in 2002 the company has grown by 30 to 50 per cent per year, however it was experiencing significant growing pains.

The company was dealing with excess stock leading to container demurrage charges. Its processes were highly manual and not transparent. It was running out of space on site. Poor housekeeping was contributing to reduced morale and productivity and in turn higher staff turnover and increasing employee dissatisfaction on site.

By the summer of 2006-2007 the poor processes were starting to impact on profitability and customer service and the company knew it had to do something about it.

SCHÜTZ DSL General Manager Andrew Gill says the high levels of growth and the many manual processes in the absence of any sort of MRP or ERP support systems, along with the need to re-engineer the organisation structure, meant that external resources needed to be sourced to assist the re-organisation while still allowing the company to meet the daily demands on the business. This is where TXM came into the picture, along with a couple of key staff changes around this time, to assist turning the Victorian business operations around.

The TXM Response

TXM undertook value stream mapping of key product flows from material supply in Germany to the end customer in Australia. It worked with SCHÜTZ DSL to implement efficiencies and effective processes.

• Establishing processes for raw materials
• Improving the process for planning and fulfilling customer orders.
• Developing lean foundations to stablise the factory.
• Implementing leadership changes
• Improving the team culture

The Results

The work undertaken by TXM has assisted the SCHÜTZ DSL Melbourne team to make significant improvements in all aspects of the business:

• 40% reduction in Inventory.
• 50% increase in output per shift.
• 30% reduction in finished goods inventory.
• Significantly improved housekeeping.
• Lead time on most products reduced to one day.
• Workload in planning and materials reduced significantly.
• Shortages reduced significantly.
• Demurrage costs eliminated and airfreight of components significantly reduced.
• Significant culture and morale improvements.

Andrew Gill says SCHÜTZ DSL was impressed with the results TXM was able to achieve through a detailed analytical and objective review undertaken, using Lean Manufacturing principles and practices as the guide.

“Tim McLean and his team of TXM associates were great to work with and added significant value to our business operations. The Melbourne site in particular has tripled in size to over three hectares in the last five years and this has necessitated constant review of our processes and layout, which TXM has greatly assisted.”

“The TXM team communicated in a professional yet fairly relaxed manner with the largely new management team in Melbourne and this has contributed to the success of the TXM programme. This success wouldn’t happen though without the strong commitment of the SCHÜTZ DSL Melbourne team who are also commended for the project and business success.”

“The best recommendation we can give regarding TXM is that we have recently agreed to continue with stage three of our TXM relationship to refine and improve on some of the achievements of 2007 and 2008.”

Contact us today to find out how TXM can improve your operations.