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Børsen - Business
Monday 5 September 2005

Our workforce showed the way to improved productivity.

(Click here for the Danish version as a PDF)

Packaging manufacturer Plus Pack received Anpro's Productivity Prize for a dramatic increase in productivity of 88%.

Productivity

Although heavy rain clouds loomed over Odense's business park, there was only optimism and a bright future in the air at packaging producer Plus Pack on Friday. The broad smiles a result of Plus Pack increasing productivity by 88% at its Odense plant.

This earned Plus Pack the Productivity Prize for 2004, awarded each year by the consultancy firm Anpro, to the company with the best productivity improvement amongst its clients.

The clearly proud Managing Director Steen Haustrup explained that the company had been able to reverse a steep downturn in efficiency levels at the factory.

"It's gone fantastically well".

"Plus Pack exhibited significant signs of ill-health, but we have rebuilt trust between management and workers", Steen Haustrup explained, adding that absenteeism had fallen from 10% to 2.75%.

He continued by mentioning that it was the workforce that had shown the way. They had gone to management to tell them that they had achieved all their objectives and now needed some fresh challenges. Torben Krøyer Bruhn also points to the role of the workers.

"The key element is to involve the workforce. Even the poorest of suggestions deserves a discussion".

There's no lack of these either. In the production area a large notice board is headlined with "The Winning Team" and a mass of red, green and amber squares. All workers suggestions are given a red square and if the idea has potential it moves on to amber. A green square is placed next to the idea when it has been implemented.

" The idea is to show workers how much is being implemented and that their suggestions are valued" Torben Krøyer Bruhn explains, whilst surveying the board. The board also shows how production is running on each line, with the data being updated six times a day.

"Our workers use the board to see how production is developing throughout the day. There is an element of competition and pride in achieving the best results", explains a satisfied Torben Krøger Bruhn.

Straight forward approach

Vice MD Torben Krøyer Bruhn explains the approach -

"It's not about reinventing the wheel. Our model is so straight forward, even I understand it. The important thing is to understand, learn and improve".

In its own market research, Anpro interviewed business leaders from 102 Danish production companies. A quarter of those interviewed felt that employees' understanding and flexibility levels were the greatest barriers to improving productivity. At the same time 65% of those surveyed were dissatisfied with their current level of productivity, with 96% saying that it could be improved.

Sean O'Hara, Managing Director of Anpro, is surprised that companies only aim for relatively modest productivity improvements, when the potential for these is far greater.

"Companies don't appreciate the size of their productivity potential which means that between 20% - 50% of resources are wasted" he says.

Anpro's research concludes that 75% of the barriers to improved productivity by those surveyed are driven by internal conditions.

Enormous Potential in Increased Productivity

With productivity improvements as the theme, 35 people attending the Productivity Day 2005 seminar listened to how Danish companies can improve their productivity.

Plus Pack received the award as a result of an 88% productivity increase, and the Minister for Trade and Finance Bendt Bendtsen had words of praise for the winners of the award.

"Plus Pack have proven that you can compete from Denmark. There are great numbers of small and medium-sized export companies, who don't utilize their full potential" he said.

3F-Union Chairman Poul Erik Skov Christensen called for businesses to utilize their workers' intelligence and interests.

"Productivity should be measured in an innovation environment and Plus Pack have succeeded in moving innovation from the boardroom to the shop floor", he said.

Kim Graugaard, Director of Danish Industry, doesn't believe that Plus Pack's success is totally "transferable".

"But the exciting thing which attracts us all is the ability to improve productivity by say 20-30%. This is a huge potential, but it's easier said than done", he underlined.

Bendt Bendtsen also sees great opportunity through increased productivity.

"Hi-tech innovation is important, but it's not enough. I am convinced that we can retain jobs in manufacturing. We don't need everyone in a white lab coat, we need people in blue overalls as well."

For further details contact:
Managing Director Sean O’Hara ()

The ANPRO consulting group established in 1988 operates primarily in the UK and Northern Europe, with subsidiaries in the UK, Sweden and Denmark. ANPRO helps clients with effective strategy implementation and has implemented more than 250 efficiency and organisational development programmes. ANPRO has worked with well-known and diverse organisations such as IKEA, Coca Cola, Ericsson and Arla, as well as a wide range of successful medium-sized businesses.

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