Fueling the Fire of throughout the

Mark Preston, [email protected] 404-308-2898 cell

Lean Foundations

Elimination of Waste – Success Foundation

Operational Excellence or Lean is a mindset. It’s all about how we can work better together – cross functionally and collaboratively – to make a difference for our customers, and to make a difference by eliminating waste. It demands excellence in everything we do through our processes and by continuously improving.

2 Lean Foundations

Some of The History behind Lean:

Henry Ford Taichi Ohno

•Switched from batch to • Production continuous flow in 1913 System – Just in Time (90% improvement) and

Deming (Plan-Do-Check-Act) Jim Womack and Dan Jones Lean Principles

1. Specify Value through the Eyes of the Customer

2. Identify the Value Stream (end-to-end process)

3. Identify and Eliminate Waste

4. Make Value Flow at the Pull/Demand of the Customer

5. Create or Enhance Process Flexibility

6. Continuously Improve in Pursuit of Perfection

7. Involve Associates (Cross representation)

8. Create a Visual Management System

9. Do Not Reward Overcoming, Drive Root Cause Elimination

10. Don’t Fool Yourself !!

The Eight Wastes Type of Definition Example Waste

Handoffs of information, Unnecessary movement poor website design and Motion of people or information Motion layout

Processing Unnecessary process Unneeded audits of Processing steps or variation of information by systems or process methods people Over-Production

Excessive reporting, copies, Over- Unnecessary Transportation and Walking notifications and alerts that information Production do not add value Defects

Transporta- Routing of AE’s/other ap- Walking (people) or Inventory provals, inadequate office tion and routing (information) layout Walking Waiting Quality issues with infor- Verifying, adding, or fixing Unused Creativity Defects mation or products/ information on forms or services documents

Inboxes (physical or A task waiting to be electronic), electronic work Inventory started (WIP) queues, excess catalogs and brochures

System downtime, waiting Delays and queues Waiting for approval

Improvement ideas that are Unused Time not given for im- developed but not provement - Peter Drucker Creativity implemented The Lean Enterprise

• Value stream is from raw material to final consumer Sales Channels to • All companies along the value Market stream comprise the Lean Enterprise

• The Entire Lean Enterprise must be healthy in order for it to survive Your • Every component of the Lean Company Enterprise needs to be lean (i.e. continuously improving)

Suppliers Strategy Deployment Process

Improvement at the Point of Impact!! Map Process Mapping - Transformation Plan - Charters

Recognition Kaizen - Suggestion System - Planning - Training - Celebration - Training - Facilitation of Event - Report out - Teaming - Mentoring - Plan–Do–Check-Act Sustaining - Report Card Mgt.- SharePoint Mgt. - Visual Management System - Key Performance Indicators Strategy Deployment

Executive Team SD Matrix Strategy Deployment Process (3yr. Breakthrough and Next Year Annual Improvement Priorities)

Sales SD Matrix (3yr. Breakthrough and Next Year Annual Improvement Priorities)

Executive Team Individual Sales Channel SD Matrix and Sales Support SD Matrix (3yr. Breakthrough and Next Year Annual Improvement Priorities)

Sales Team Individual, Regional or Vertical SD Matrix (3yr. Breakthrough and Next Year Annual Improvement Priorities) Value Stream, Operations and Support teams

Factory Teams

The Purpose of Strategy Deployment: - Communication of Goals throughout the organization - Get everyone involved in Kaizen (Change for the Good) Kaizen Process

Value Stream Map – Current and Future with Transformation Plan

Charter for Kaizen – Target and Deliverables Type of Kaizen – Std. Work, Kanban, SMED, TPM, ETC….

Training Day 1 Benchmarking and Suggestions Implementation Report out with Report Card

30-60-90 day Follow up for Sustainment Value Stream Mapping

PRODUCTION 90/60/30 day 6 - week CONTROL Pacific Forecasts SteelPacific Co. Forecast CUSTOMER SteelPacific Co. MRP Steel Co. Weekly Fax Daily Order 80 linkages/mo Raw materials -40 silver Suppliers - 20 gold - 20 black Tray 10 Pieces 2 shifts Weekly Schedule Daily Ship Schedule Weekly delivery BOLT 1X Week Hardening Plts I 5 days Raw bolts 10 days Bolts 5 days NUT PAINT ASSEMBLY SHIPPING I I MANUF. I (NUTS) Nuts Staging 15 days Steel Balls 5 days 15 days 15 days Daily

C/T = 3.5 second C/T = 7.5 seconds C/T = 6 seconds C/T = 15 seconds C/O = 15 sec C/O = None C/O = 0 C/O = 0 Yield = 99% Yield= 100% Yield = 95% Yield = 98% 1 Person 1 Person 1 Person 2 People EPE = 4 weeks EPE = Day EPE = 4 weeks EPE= 4 Weeks

Concurrent work add longest lead-time Production Lead Time = 15 days 5 days 10 days 15 days 15 days 55 days (3300 sec) 7 sec 15 sec 12 sec 30 sec Value Added Time = 64 sec.(<1 day) The Three Flows

. Information

. Product

. Time / Value Added Definition of Kaizen

•To Break Apart •Think •To Modify •Make Good •To Change •Make Better

•Change for Better •Improvement •Continuous Improvement 4M’s of Operations and Office Plant Operations

Man Machine Material Method

•TPM Total Preventative •Material Flow / Pull •Process Improvement •Training Opportunities Standard Work Communication Systems Maintenance •Kanban Replenishment •Cycle Time •Lead time improvement Best Practices

•Autonomation

Office

Man Metrics Missing Method

•Process Improvement •Key Performance Drivers •Missing Opportunities •Training Opportunities Standard Work Windshield and Rear View Gaps that we need to close Communication Systems Best Practices Mirror Thinking

Learning to See

“Seeing the Whole and the Details” Learning to See Going on a Rattlesnake Hunt

Area and Cell World Class Needs: Non Negotiables • No Long Term Handwritten Signs • No Outdated, Torn or Non-Laminated Signs • No Unpainted Wood or Steel • Cables must be all tied and organized • No wires on the floor • Upon leaving the Cell – All tools are on Shadow Boards. • The 5-S To-Do List must accompany all audit sheets. • Labeling on every designated location • Correct any Safety issues immediately • Designate a red tag area in the plant and disposition everything within 60 days. • Aisle ways are clearly marked and clear at all times. • Pallet Jacks, Carts and Forklifts are painted and not scratched • Andon Lights must have descriptive signs of meaning. • Eliminate Cardboard where ever possible • All equipment and benches remain clean and painted. • Color coding consistency must exist • No Flat Surfaces above 6 ft. Daily Gemba Walk

Why can a Sensei take 3 steps into the Factory and say there is no Standard Work? •First Impression Area – WOW Factor

•5-S Culture – Everything has a place and Everything is in it’s place •Closed Loop Systems •Visual Management •4 M Control •Data •Root Cause Counter Measure System •Measurement Feedback to the Cell Level •Visual Evidence of Ownership and Accountability Plant Conversion Conveyor Lines to U-Shaped Cells From Lines to Cells Before

28 people producing 280units/hr. in 5000 sq. ft. After

16 people producing 300 units/hr. in 2200 sq. ft. with 2 cells 5S & Standard Work Assessment Closed Loop System

Responsibility Map Monthly Results Summary (Averaged by Plant and Area)

Stand. Work Assess. Summary

5S Results Summary

Graphs by Cell / Area Primary Area of Responsibility (Color Coded & Person’s name and picture)

2 2 5s and S/W -- Responsibility Map

5S & SW Top Performers

Also Include Auditor Role Picture 2 Primary Area of Responsibility Assigned3 Color Coded with Person’s Name & Picture)

Kanban Events

flow to cells

Supermarket

Kanban mixed: Visual Kanban by bins and Kanban by Cards. From Supermarket to Production Cell

Kitting Cars identified by cell and workstations

Making Product Flow from the Customer Pull ABS in our Value Streams

Plant KPI Board Focused Factory (Value Stream) Level Cell Level

Safety Cross 5S Audit

Std. Work Audit 5S Cleaning Roles

Cell Layout

Operator Loading Chart TPM Checklist

Kaizen Newspaper Kaizen Report Card Cell Information Training Matrix Hourly Performance Info.

Hourly Comments Green Color when Target is Met

Red Color when KPI Charts (EQDC) Assembly Cell Hourly & KPI Board Target isn’t Met

3 2 Lego Plant Layout – True scale model

Lego Layout Monthly Kaizen transformation Board Lean Leadership Training Lean Leaders Standard Work

“Seeing the Whole and the Details” •Lean Leaders Playbook Reference Material 4M Questions and Answers Individual Standard Work

2. Kaizen War Room Organization

Mobile Cart with all Kaizen Supplies for point of use availability

“Dedicated Location for Every Part, Every Part in its Location”

MAINTENANCE 1. Employee Ownership

Warehouse Rack Responsibility Assignation

ABS with Suppliers – Sur-Seal

Cleaning Organize Remove Station No Hidden Cabinet Doors Carts Waste

Playing a Round of Golf with the Lean Golf Bag for Sales

Strategy Deployment Process Mapping

Lean Leadership Playbooks 5-S Value Stream Management Value Analysis Visual Management Kaizen Key Performance Root Cause – Counter Measure Indicators

Continuous ImprovementLean Solving Problems Lean Tool bag with the right Club Create High Level Map First – SIPOC • Company, Value Stream, Team, Job --- Great Place to Start

SIPOC Diagram

Suppliers Customers Physical Suppliers Information Suppliers Internal External

Inputs Processes / Activities Outputs

Physical Information Physical Information

4M Opportunities Data Box Man Metrics Method Missing Visual Management

Sales Project Board

Sales People

$10K to $40K

$40K to $100K

> $100K

30 30 Week 1 30 Week 1 30 30 60 60 Week 2 60 Week 2 60 60 90 90 Week 3 90 Week 3 90 90 >90 >90 >3 weeks >90 >3 weeks >90 >90

Submital Complete Hold Order Spec Quote Quote Job Buy Price Submittal and w/ Approved Opportunity Complete Request Issued Awarded Issued Hold Order Required Forwarded Submittal Won Lost Sales KPI Boards

5 Key Performance Visual Indicator Goal vs. Root Cause Owner Metrics and Trend Actual Corrective Action Team Suggestion Board Types of Playbooks For each customer demand level or planned process deviation, there is a “Play”

1.) Job Playbook

2.) Business Unit Playbook – Channel, Value Stream

3.) Product Playbook

What is in a Playbook? Results and Accomplishments from Playbooks

•Unified Message •Clear understanding of the Products - - Pros-Cons-Gaps

•Sales Approach Best Practices

•Product Portfolio Roadmap •Model Best Practice Approaches for each Specifier Type •Communication and Connection to the Product Value Streams •Checklist •90 Day Plan

50 Brainstorm Ideas

Clarify – Gain common understanding - Eliminate Duplicates

Categorize – Sort into related Categories

Multi-vote – Identify Top Priority Items Time-bound Process Map

• Each day is represented by pink post it • Each hour is represented by vertical line • Duration for each process steps is represented by the number of post its in relation to the vertical line

Takt Time = 1 per month Create “Time-bound” As-Is Process Map

PT = 12 hours LT = 24 hours Marketing Concept 1 2 %C &A = 98%

No Platform is Correct? PT = 3 hours Yes New Job Marcom Created Opened LT = 16 hours Manager VA %C &A = 80% Insp

Lit code PT = 1 hours Log new Update log needed? Update log 3 LT = 8 hours Traffic Job and sign Insp %C &A = 98%

PT = 16 hours Place Sticker/ Graphics Create imagery LT = 40 hours Draft Copy Assemble 1st Log into Created Proof tracking sys VA Insp %C &A = 99%

PT = .5 hours Production Notify External Vendors/ Quote LT = 5 hours Total PT = 32.5 hours %C &A = 98% Total LT = 93 hours Insp Process Mapping with Customers

Lean World Questions?