Good Business eGuide for South Australia
Industry sector: Manufacturing
Core activity: Electronic components development & production
Size (ft employees): 55
Other activities: Contract electronics manufacturing
Location: Lonsdale, SA
Background
Redarc Electronics is a family owned, South Australian business with over 30 years experience in the research, design, development and manufacture of a range of electronic voltage converters and associated products for vehicles such as cars, trucks, buses, boats and rail.
Several years ago Redarc made a conscious decision to be an innovator, not an imitator. Redarc knew they could not compete with China’s mass production abilities. Instead they decided to become smarter in the way of design. Redarc saw the potential to better harness its workforce culture and existing commitment to environmental stewardship and in late 2007, it implemented a major process improvement project with the construction of a new $5 million innovation centre in Lonsdale South Australia. This was assisted by a successful bid for $1.6million under the State and Federal Government Structural Adjustment Fund for South Australia which included provisions for sustainable development and job growth.
Results
- Since implementing its new processes, Redarc’s production volume has increased more than 20% as well as being on track to reduce absolute energy and water use by 20% by 2012 and eliminating major sources of waste.
- Awarded $1.6M grant funding to help develop the new world-class efficiency manufacturing facility, and a further $1.6M under AusIndustry’s Commercial Ready program to commercialise new clean battery management technology.
- Redarc’s facility and processes have achieved both ISO9001 (Quality management) and ISO14001 (Environmental management) accreditation.
- Public recognition and praise from industry peers including Manufacturer’s Monthly 2009 Technology Application of the Year Award, Electronics and ICT Association 2008 Environmental Sustainability award and Southern Adelaide 2008 Innovation in Sustainability award.
Action Undertaken
Some of the key features in the successful completion of the Innovation Centre project included:
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Establishing a stakeholder development team carefully selected for its array of skills and knowledge.
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Preparing a full technical brief emphasising design for function and environment. This was a critical step to achieving the vision for the facility and opening new markets. The team took a forward looking approach centred on cost, maximising manufacturing efficiency, conservation and fostering an innovation culture.
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Installing the latest state-of-the-art technology coupled with the implementation of a new lean manufacturing layout and program
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Investing heavily into new lead free technology that not only benefits the environment but results in higher quality products.
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Celebration of critical milestones with employees and all external stakeholders involved.
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Ongoing training for employees in OH&S, lean process and recycling.
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Significant ongoing investment in product research and development (20% of turnover).
Learning
- Redarc’s key to being globally competitive is to base its initiatives on a whole of business strategy and to continue to drive an innovation culture. Employee engagement and cross collaboration was found to be very important as has been acknowledging individual efforts and achievements.
- The selection of the project team for development of the Innovation Centre and change leads for other initiatives was also critical for Redarc’s success. Understanding that the business could not achieve everything effectively by itself and being prepared to seek outside help was extremely valuable in maximising outcomes.
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