EMPLOYEES AND THE WORKPLACE
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Driving greater efficiencies
Jotun strives to deliver increased operational efficiency through growing competence in Operations. At the
heart of the initiative lie seven mandatory global programmes.
Enhanced operational efficiency delivers powerful benefits for
Jotun stakeholders. Increased speed, less waste (of time as well
as other vital resources), heighted effectiveness, and improved
quality and standards all work in unison to help produce a more
profitable, predictable and effective global organisation.
Jotun is committed to a process of continual improvement in
Operations, enabling better efficiency (measured by operations
costs per litre/kg of produced product) through a highly
structured framework of key programmes.
Unlocking development
The programmes cover Flow Efficiency, 5S (safety and order
within the workplace), Production Planning, Operator Driven
Maintenance, Transport Tenders (the management of logistics
partners), SC Network Analysis (optimizing warehouse setups),
and Factory Design and Technology (standardising factory
design and implementing new technology).
These initiatives are tailored to address key areas that are
applicable to all Jotun operational facilities, creating a strong
culture of uniform standards and quality. Although all
programmes are long-term, ongoing projects, three were focal
points during 2018, namely: Operator Driven Maintenance
(ODM), Flow Efficiency and Production Planning.
Optimising performance
Flow Efficiency centres on reducing throughput time – from
an inbound order to an outbound product. Jotun is focusing
on achieving this through standardised and increasingly stable
processes, alongside greater operator involvement.
In 2018, the Group laid key foundation stones for improved
Flow Efficiency with the initiation of work to standardise Jotun’s
automation control system (automated processes are a powerful
tool for enhancing efficiency) and the beginning of a scheme
to perform and record time measurements for all operations
processes. This will help map current performance and create
future targets.
Production Planning impacts upon all parts of the business value
chain. This involves optimising planning to ensure that Jotun
produces the right quantity of products to satisfy demand and
drive overall performance. A highly complex area, it entails
integrating business forecasts, customer orders and operational
data into a system that ensures Jotun utilises its capacity in
an optimal manner. In 2018 work commenced on creating
new standards, producing documentation and planning pilot
initiatives for 2019.
Empowering operators
2018 saw the launch of the ODM programme, with a ten-step
implementation procedure created to establish a uniform culture
whereby operators are trained to conduct systematic equipment
maintenance. This introduces a stronger sense of ownership,
while reducing wear and tear and machinery downtime.
Each company initially commits to the programme, before
identifying suitable ODM equipment (e.g. forklifts, cranes, filling
machines etc.), defining tasks, creating standard operating
procedures, and providing requisite tools and training.
Successful implementation leads to ‘black belt’ maintenance
certification, with internal follow-up quarterly ODM audits and
Group Operations and Maintenance audits every second year.
By the end of 2018, five facilities had achieved black belt status,
with a further 16 sites scheduled for certification in 2019.
Ongoing impact
The result of Jotun’s ongoing campaign for enhanced
operational efficiency is a positive one, with overall operations
cost per litre/kg of product maintained in 2018 (year-on-year),
despite increased operational complexity and the impact of
inflation worldwide. The sites demonstrating the greatest
operational efficiency are those that are frontrunners in the
implementation of Jotun’s seven key programmes, illustrating
their effectiveness.
Competence