Low-hanging fruits and job satisfaction In less than one year, Orlik Tobacco Company has implemented an extensive administrative Lean project which has created a complete description of the factory’s administrative processes and 288 ideas for improvements. The process description is used almost directly as requirement specification for the future ERP system, and 15 improvement groups are now introducing new, efficient work processes on an ongoing basis. Why do we enter information about raw tobacco into three different spreadsheets? Why do the raw tobacco department and the production department not have the same picture of a future product when they make their budgets for the coming year? And why is the process for product development, design and marketing not the same for Danish and international products? These three questions reflect three low-hanging fruits which have now been picked by Orlik Tobacco Company in Assens (Denmark). The factory’s history goes back to 1864, and it has just implemented a wall-to-wall Lean project observing the budget and time schedule. In addition to Orlik Tobacco Company, it also included the sister company Nordisk Tobaks Kompagni and their joint subsidiary, Orlik Nobel. All 298 employees at the three locations attended an information meeting on the project, 70 employees worked in nine workshops, and they had lots of ideas which are now on the way to being introduced. Three consultants from Valcon assisted in the process. “The Lean project is about job satisfaction and not about staff rationalisation,” says Mogens Svejgaard, Project Manager for the Lean project, and internal business developer at Orlik Tobacco Company. “The philosophy behind it is that when competent employees go from a work load of 112 % to 80 %, they will be in a better position to take on a valuable helicopter perspective. Improving the efficiency of our working methods will reduce the employee overload and lead to an improved business and enhanced job satisfaction.” FaCTs aBOUT ORLIk TOBaCCO COmPany Orlik Tobacco Company is one of the world’s largest producers of smoking tobacco with the world’s largest collection of tobacco recipes. The business is also the world’s largest exporter of pipe tobacco with sale to 50 counties throughout the world. A little less than 300 employees in Assens (DK), Holstebro (DK) and Aalborg (DK) have large knowledge and an extensive production equipment at their disposal. They are behind an annual turnover of 900 million DDK. The profits in 2006/2007 were 89 million DKK. Orlik Tobacco Company is owned by Scandinavian Tobacco Group A/S (50 %), Assens Tobaksfabrik A/S (44 %), and C.B. Møller & Co. A/S (6 %). In 1993, Orlik Tobacco Company bought Peter Stokkebye International. In 2000, Alfred & Christian Petersen, a large exporter of pipe tobacco, was also acquired by the company. The latter addition gave knowledge and a number of quality tobaccos – a.o. My Own Blend and Danske Club. Orlik Tobacco Company has two up-to-date and specialised factories in Assens and Holstebro at its disposal with a floorage of 35,000 m2.
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