EHS Manufacturing wins contract work due to MPSP

EHS Manufacturing wins contract work due to MPSP, which helps Queensland suppliers build capability to increase both competitiveness and better position the company to win major project contracts.
The Queensland Government sponsored MPSP initiative has reinforced for EHS Manufacturing its strengths and providing a clear path for improvement to increase its competitiveness and capability and helped them with $480,000 worth of work on multiple contracts.
EHS are now more project-focused thanks to the direction provided under a State Government supported program that is helping  EHS reshape the business and its goals and be more aligned to working within a project environment.

Company at a glance

EHS Manufacturing is a precision machining and fabrication business that was established in Mackay in 1993 to provide specialist service to the sugar industry. Since then, EHS has grown substantially in terms of size and capability and have extended our services into the mining industry. EHS now supplies a range of unique products that we have designed and built over the last 15 years as well as continuing to develop equipment that will meet the special needs of the mining and sugar industries from concept through to finished hardware.

The opportunities and benefits

EHS Managing Director Steve Lawn said the subsidised program, the Major Project Supplier Plan (MPSP), was very useful and helped identify areas where improvement was needed.
“The MPSP was a good program to undertake and identified our strengths and weaknesses in regards to tendering for more business.”
EHS have proved themselves successful since completing the MPSP, having won numerous contracts that they tendered for.
“We have won a lot of work since undertaking the MPSP and completing the identified actions in the business plan.”
“Going into the MPSP, our main objective, which we communicated to the MPSP facilitator Mark O’Shannessy from Management Effect, was to get EHS into a position so that the company can best support major project supply chains in and around Mackay.”
“The MPSP highlighted for us our strengths and our weaknesses, and we were able to see clearly where we had to improve to be more competitive in the tenders and be part of the Mackay supply chain.”
“Mark’s awareness and industry experience was invaluable to the process as well,” Lawn said.
The MPSP highlighted for EHS their strengths in their long term relationships and credentials with their loyal customer base as a result of their strong reputation for providing reliable and high standard product and work quality.
The report also highlighted that EHS has a high level of business automation technology which could enable highly accurate and responsive customer sales and service.
Aside from highlighting the strengths of EHS, the MPSP also made them aware of the areas where they most urgently needed to improve to better their chances of winning work.
The report identified to EHS that their major weaknesses were their poor sense of business strategy and risk management, low sales and marketing activity as well as high instances of production rework on parts and items that should be produced with simplicity and high efficiency, causing delays to delivery and excessive cost.
“Having these weakness highlighted was good as we were able to prioritise as high priority action items, and the analysis showing gaps in capability against project requirements was very useful,” Lawn said.

The outcome

Almost 12 months since undertaking the MPSP, EHS have completed 60% of the actions that were identified in the MPS Plan and found that the business and processes have improved from having implemented these changes.
EHS has also been very successful in tendering for work, and credits having undertaken the MPSP for this success.
Having won over $480,000 worth of work on projects including the BMA Saraji Mine (Safety Viewing Platform and Cable Handling upgrades) and modifications on a Sugar Cane Harvester, EHS were able to clearly identify and learn from the previous mistakes in order to win this work.
“Prior to commencing work on the Sugar Cane Harvester, we scoped the job early to avoid any rework and production delays, which was one of the weaknesses identified in the Report.”
“In regards to the BMA Saraji Mine projects, we were able to approach these proposals with more professionalism than previously, including referencing relevant Australian Standards on the proposal, ensuring total compliance,” Lawn said.

Major Project Supplier Program

ICN, in partnership with the Queensland Department of State Development, Infrastructure and Planning (DSDIP) developed the Major Project Supplier Plan (MPSP) to boost Queensland industry’s success in supplying to major projects throughout Australia, including the State’s record $17.1 billion capital building program. The MPSP program is fully subsidised and provides eligible Queensland companies with a comprehensive analysis of its current position against the unique requirements of major projects.
An MPSP takes approximately 1.5 days for the assessment and the facilitator generates a report which comprises:

  • a capability assessment of the business against the requirements of major projects
  • a review and discussion of the results of the assessment with company decision makers
  • identification of key areas for improvement and a prioritised action plan.