Saskatchewan LEAN Improvements in Manufacturing - Guidelines General Program Parameters Proponents do not have to receive funding under the Lean Gap Analysis component of the program to receive Infrastructure funding and vice versa. However, a Lean Gap Analysis is mandatory prior to application for Infrastructure projects so equipment needs and modifications are properly identified. Applicants must complete their project and meet all requirements by the indicated deadline dates in order to receive funding. Eligible Clientele: Applicants must be: Agri businesses involved in value added processing of agricultural products i.e. Sask. based crops and livestock into food, feed, bio products. Commercial enterprises. Located in Saskatchewan. Incorporated in Saskatchewan or federally, or paying Saskatchewan income tax. An existing facility. Expending a minimum of $200,000 on their project. The following facilities are not eligible: Facilities where the retail environment contains more square footage than the processing area. Publicly funded facilities. Processors of seafood or fish. Eligible Activities: Support for adoption of best practices, new technologies, and state of the art processes that stimulate improvements in productivity and efficiency including: Lean Gap Analysis to identify improvements in productivity and efficiency. Process automation acquisition or adaptation and installation of automated processes. Process improvement implementing lean manufacturing principles. Technology adoption adoption of new state of the art technology and processes. Activities must have a significant impact on productivity, and represent progressive development from equipment and processes currently used.
Funding: Will be provided on a first come first served basis. 50 per cent of eligible and approved expenses to a maximum of $500,000 per proponent including a maximum of $20,000 for Lean Gap Analysis. Additional projects in other facilities will be considered on a case by case basis. Funding caps apply to all items combined i.e. gap analysis, facility modifications, and equipment. Funding from all government sources (federal and provincial) cannot exceed 2/3 of total project costs. Applicants cannot access other government sources of funding for the same items e.g. items receiving funding under Food Safety Systems Program (FSSP) cannot be claimed under SLIM. Applicants accessing the FSSP, SLIM, and/or Meat Hygiene Pilots must not exceed the combined funding caps noted in FSSP. Refer to the FSSP program guidelines on the Ministry's website at www.saskatchewan.ca/agriculture for more information. Equipment and materials must be for use in the operator's own facility. Equipment and materials must be installed and fully paid for at time of claim. Equipment and materials must be related to adoption of best practices, new state of theart technologies, and processes improvements that stimulate significant improvements in productivity and efficiency. Items not eligible for reimbursement include, but are not limited to: Expenditures made prior to April 1, 2013 or after February 1, 2018. Expenditures made prior to project approval will only be considered on a case by case basis. New buildings, and additions or building modifications outside of the processing/packaging areas or related to the final product warehousing/storage space are not eligible. Building modifications, expansions to the existing footprint of the facility, and/or increases in square footage will only be considered on a case by case basis. If approved, reimbursement for building modifications and/or additions will not exceed the lesser of 25 per cent of equipment and training costs, and $50/sq. ft. in the case of additions. Items related to the addition of processing lines and equipment for the purpose of producing new products will be considered on a case by case basis. GST and PST. Labor/salaries of operator or employees. Use of own equipment. Brokerage fees. Business or Marketing Plan development. Office equipment i.e. furniture, filing cabinets, staplers, paper, phones, etc. Computers and related hardware and software. Cars, trucks, tractors, trailers, forklifts, reefers, and other mobile motorized equipment. Purchase of land or buildings. Interest payments and financing costs. Legal fees. Production disturbances.
Farm equipment. Items considered being regular repair or maintenance e.g. items requiring replacement due to normal wear and tear. Invoices under $100. APPLICATION PROCESS Pre approval is required on all projects. An initial series of application dates has been set for the program. Applicants must first apply for pre approval to undertake the Lean Gap Analysis. Applications will be reviewed as they are received, and proponents will be notified of decisions on an ongoing basis. Proponents are encouraged to apply early for Pre approval of Lean Gap Analysis in order that the required Lean Gap Analysis is completed prior to submission of the application for Preapproval of Infrastructure Projects. A Lean Gap Analysis must be completed and submitted with any application for Pre approval of Infrastructure Projects. Approval to undertake a Lean Gap Analysis does not imply approval of your Infrastructure Project Only following approval to proceed with a Lean Gap Analysis will an application for Pre Approval of Infrastructure Projects be provided. A Lean Gap Analysis must be completed and submitted with any application for Pre approval of Infrastructure Projects. Completion of a Lean Gap Analysis or provision of a Pre Approval of Infrastructure Projects application does not imply approval of your Infrastructure Project. This is a separate review process. Projects will be assessed on a number of criteria, which may include but is not limited to: impact of project on productivity and efficiencies, use of Saskatchewan inputs in the products, financial capability to support the project, and size of project. Additional application dates for receipt of Lean Gap Analysis and Infrastructure Projects will be set following the current application deadline if funds are available. LEAN GAP ANALYSIS A Lean Gap Analysis is mandatory in order that equipment needs and modifications are properly identified. Pre approval is required to undertake the Lean Gap Analysis. The Lean Gap Analysis will assist the applicant in determining what is needed to enhance productivity and/or implement LEAN manufacturing (i.e. the specific modification and equipment changes, and training requirements). Estimated costs to proceed will also be required to apply for Infrastructure funding. Funding is provided to hire an independent, third party engineer or consultant to undertake the Lean Gap Analysis. The Lean Gap Analysis must have been completed within the 24 months prior to application for Pre approval of Infrastructure Projects. Funding: 50 per cent of eligible costs to a maximum of $20,000 per proponent. This funding will be attributed towards the maximum program allocation of $500,000. Rebates under $100 will not be provided. Individual invoices must be more than $100. Expenditures for the Lean Gap Analysis will be eligible even if the proponent chooses not to proceed with infrastructure changes, or if their Infrastructure Project is declined.
If choosing to proceed, only those facility modifications and equipment, and associated installation and training identified in the Lean Gap Analysis will be eligible for reimbursement. Once pre approved, proponents may undertake their Lean Gap Analysis. Applicants should complete their analysis early enough if anticipating applying for Pre approval of Infrastructure Projects. Deadline for Lean Gap Analysis Claims: Proponents will need to complete their Lean Gap Analysis and submit their final claim within 6 months of gaining Pre approval of Lean Gap Analysis. A claim form will be provided once the proponent has been approved to undertake a Lean Gap Analysis. Projects not meeting the program requirements by the indicated deadline dates will not be eligible for any reimbursement. Interim claims are not available for Lean Gap Analysis expenditures. Ensure that a consultant knowledgeable in Lean Manufacturing and/or systems improvements is used e.g. post secondary education in a related field in conjunction with relevant experience. The Ministry cannot provide referrals or recommendations on consultants. The Lean Gap Analysis must include an in depth description of the following items: Current production line i.e. all processes undertaken. Include a schematic of the current processing line (existing process flow diagram) and of the building. Current issue(s) the current processing or efficiency issue(s) that needs to be addressed e.g. description of the bottleneck issue. Proposed solution how the issue(s) would be solved i.e. what process automation, what process improvement, and/or what state of the art technology will be adopted. This may include equipment replacements, equipment modifications, and/or facility modifications that must be made or training required. Include a schematic of the proposed processing line (proposed process flow diagram) and of the building. Productivity/efficiency gain productivity or efficiency gains that will be garnered as a result of the proposed changes e.g. % or $ productivity increase, labour savings, operational savings, etc. Lean Gap Analysis Summary Chart summary of the above. A template will be provided. Infrastructure Project application must include: A copy of the completed Lean Gap Analysis, including all of the above information. Equipment replacements, equipment modifications, facility modifications to be made, or training required. Estimated costs for each of the proposed items Higher priority items should be considered first when applying for Infrastructure funding. Pictures of the current equipment to be replaced or modified, or area to be modified
Eligible Lean Gap Analysis activities include: Feasibility studies or commercial assessments that identify automation or lean manufacturing processes or technology improvements. Engineering and technology design, assessments and process audits. Eligible Lean Gap Analysis expenses include: Consultant fees and expenses. The Lean Gap Analysis must be undertaken by an independent third party. Note: The Facility Modification (FM) Food Safety Analysis required under FSSP is specific to identifying facility modifications and equipment related to enhancing food safety. This differs significantly from the Lean Gap Analysis required under the SLIM program, which identifies facility modifications, equipment, and process improvements related to enhancing productivity and efficiencies. As such, separate Analysis documents are required if applying for each program. Only following approval to proceed with a Lean Gap Analysis will an application for Pre Approval of Infrastructure Projects be provided. A Lean Gap Analysis must be completed and submitted with any application for Pre approval of Infrastructure Projects. Completion of a Lean Gap Analysis or provision of a Pre Approval of Infrastructure Projects application does not imply approval of your Infrastructure Project. This is a separate review process. INFRASTRUCTURE COMPONENT (i.e. Facility Modifications and Equipment) A Lean Gap Analysis must be completed and submitted with any application for Preapproval of Infrastructure Projects. Pre approval for Infrastructure Projects is required. Infrastructure funding caps apply to all items combined i.e. gap analysis, facility modifications, equipment, associated installation, and training. Funding: 50 per cent of eligible and approved expenses to a maximum of $500,000 per proponent including $20,000 for Lean Gap Analysis. Additional projects in other facilities will be considered on a case by case basis. Further caps apply to those receiving funding under FSSP and/or the Meat Hygiene Pilots. See FSSP Guidelines for details. Only those facility modifications and equipment, and associated installation and training identified in the Lean Gap Analysis will be eligible for reimbursement. See above Lean Gap Analysis and Infrastructure Project application requirements. See above Lean Gap Analysis and Infrastructure Project Application requirements. The Lean Gap Analysis must have been completed within the 24 months prior to application for Infrastructure. Proponents will be asked to provide documentation which shows ability to financially contribute the necessary funds to the project e.g. letter of financial commitment from your financial institution or financial statements. Projects will be assessed on a number of criteria, which may include but is not limited to: impact
of project on productivity and efficiencies, use of Saskatchewan inputs in the products, financial capability to support the project, and size of project. Contracts will be required for with all applicants. Eligible Infrastructure expenses include: o Purchase or lease of new equipment and machinery, including replacement of existing equipment. Reimbursement of leases will be made on those portions that are paid up to time of claim. o Structural adjustments and renovations of buildings, including rental of equipment required to undertake the renovations. o Installation, delivery, shipping/handling fees, and construction expenses provided by an independent third party. o Consultation, design, engineering, training, and project management services provided by an independent third party. Training cost directly related to the project i.e. cost of independent third party trainer, books, registration fees. Activities must have a significant impact on productivity, and represent progressive development from equipment and processes currently used. Once pre approved, proponents may undertake their Infrastructure Project. Deadline for Infrastructure Claims: Proponents will need to complete their project, obtain any required permits, and submit their final claim within 24 months of project approval or by February 1, 2018, whichever is earlier. Proponents will be required to repay any monies provided if program requirements are not met within the required deadlines. Proponents must submit any claims using the electronic claim form provided upon project approval. Interim claims may be requested, however, it must provide a minimum rebate of $25,000 to be eligible for an interim payment (i.e. $50,000 in eligible expenditures must be incurred). Claims with rebates under this amount will only be paid upon final payment. Total project expenditures must be a minimum of $200,000. A 15 per cent holdback will be placed on all claims until the project has been completed, any required statuses have been achieved, and final claim submitted. Equipment and materials must be installed and fully paid for at time of claim. Individual invoices must be more than $100. Proponents are responsible for obtaining and complying with any permits or approvals required and for incorporating any relevant mitigation measures for your project. Requirements must be met prior to rebate. Proponents will be required to repay any monies provided if program requirements are not met within the required deadlines.