Lean Principles – Blog by Kulbir Dhanda
The Cost of Poor Tool Management – Why Every Second Counts
Kulbir Dhanda, Business Improvement Specialist at OSAAP Australia, brings over 20 years of experience in applying LEAN principles to optimise business processes. He is dedicated to improving manufacturing efficiency and minimising waste.
In this series, Kulbir will examine how businesses can implement LEAN strategies to address everyday challenges, beginning with tool management.
Many companies overlook the true cost of disorganised tools. While searching for misplaced tools may seem like a minor inconvenience, the lost time quickly adds up, leading to production delays, missed deadlines, increased equipment damage, and even safety risks.
Through his expertise, Kulbir will break down practical ways to enhance tool management, reduce inefficiencies, and improve overall productivity.
Common Challenges in Tool Management
- Lost or misplaced tools: Employees waste time searching instead of working.
- Damaged equipment: Improper storage leads to increased repair and replacement costs.
- Lack of accountability: No tracking system leads to unorganised workspaces.
LEAN Principles for Better Tool Management
5S Methodology:
1. Sort: Keep only necessary tools.
2. Set in Order: Designate a specific place for each tool.
3. Shine: Keep tools and storage clean.
4. Standardise: Ensure storage practices are consistent.
5. Sustain: Maintain organisational discipline.
Visual Management:
Foam inserts, shadow boards, and labels allow instant identification of missing tools.
Standardised Storage:
Consistent setups across workstations prevent wasted time adapting to different storage systems.
How OSAAP Solutions Improve Efficiency
OSAAP’s custom foam inserts and storage solutions prevent waste, reduce search times, and increase workplace efficiency. Businesses using our solutions have reported:
- 40% reduction in tool search time.
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- Improved workflow and reduced equipment damage.
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- Standardised processes that save time and money.
Real Businesses, Real Results
OSAAP’s real-world applications show that structured tool management is not just about convenience—it is about cost savings, safety, and efficiency. Our solutions have delivered measurable results for businesses across multiple industries:
• Defence Contractor: Partnered with client to reduce search time by 40% and improved critical component damage time by 100% by implementing custom foam tool and component control solutions, improving compliance and efficiency.
• Aviation Firm: Partnered to standardise tool storage across multiple workstations and sites, reducing downtime and tool loss while improving accountability.
• Aerospace Engineering Firm: Partnered to implement a shadow board and foam insert system that streamlined maintenance processes, cutting tool retrieval time in half.
• Construction firm: Partnered to protect valuable equipment before damage occurs. New equipment purchased due to previously badly treated gear.
We have seen numerous businesses transform productivity by changing how they store and manage tools. A farming cooperative we worked with reduced downtime by 25% after implementing a structured tool storage system.
Previously, employees wasted time searching for tools, causing production delays. After introducing foam inserts, standardised storage, and a tracking system, efficiency skyrocketed. Workers could instantly find what they needed, leading to faster turnaround times and fewer interruptions. This simple change made a significant impact, and the company continues its partnership with OSAAP to further improve production workflows.
Smarter Workflows – Quick LEAN Tip
How to Improve Tool Management Today
Business owners looking to improve tool management should start with a tool tracking audit. For one week, track how much time employees spend searching for tools. If tool misplacement is a common issue, the following steps can provide immediate improvements:
• Declutter and Sort: Remove unnecessary or duplicate tools.
• Assign a Home for Every Tool: Use foam inserts or shadow boards for clear storage spaces.
• Standardise Storage: Ensure every workstation follows the same system.
• Introduce Tool Accountability: Implement check-in/check-out systems to track high-value tools.
The ideal LEAN tool storage system
A best-practice setup includes:
1. Custom Foam Inserts & Shadow Boards – Every tool has a dedicated, colour-coded space, making it instantly visible when something is missing.
2. Modular & Mobile Storage – Toolboxes and stations should be adaptable to workflow changes.
3. Standardisation Across the Workplace – No matter which workstation an employee is at, tools should be stored the same way.
4. Digital Tracking & Accountability – Barcode or RFID tracking can enhance tool accountability. This is most applicable for high-value tools or mission-critical areas (defence, aerospace).
Take the Next Step Toward LEAN Efficiency
Embracing LEAN tool storage solutions is more than just an organisational upgrade—it’s a strategic move toward long-term efficiency, cost savings, and operational excellence.
If your business is facing challenges with misplaced tools, inefficiencies, and workflow disruptions, now is the time to take action. Implementing custom foam inserts, standardised storage, and digital tracking will help streamline processes, boost productivity, and reduce unnecessary expenses.
Rather than asking, “Can we afford to invest in structured tool storage?”, the real question is,“Can we afford not to?”
Contact our team today to discuss tailored solutions that will transform your workspace and enhance your efficiency.