Update on Excellence Building Flexibility and Capacity at AM General's H1 Plant, Mishawaka, IN: The Experience

People-focused improvements bring results in materials and other areas.

Lea A.P. Tonkin

When people at AM General's ed project team to learn from oth- (MIT). Former MIT manager Jerry HMMWV & H1 Assembly Plant in ers," said Irvin. The project team Moore stated, "We were still work- Mishawaka, IN set their sights on was given an opportunity to survey ing back in the 70s and 80s; the organization-wide improvement, and visit a selected group of com- scope of change was tremendous. they developed challenging targets. panies that had synergy in their We quickly realized that without Their progress so far reflects signif- business and operating styles. The cultural changes in facilities, icant progress at the brownfield project started out as a materials ergonomics, safety, methods, sys- facility, yet they realize the need for improvement initiative and quickly tems, and general organization, we continued, organization-wide im- changed scope to a plant-level could not reach our potential." provements. A lean implementa- project. This early-on discovery at Everything from elimination of tion progress report and an off-road AM General led to the creation of waste to pull systems, packaging, course demonstration were includ- the Mishawaka Improvement Team etc. was scrutinized and evaluated ed in the recent AME workshop at Mishawaka and at South Bend, IN. Jim Armour, president and CEO, was the catalyst for lean In Brief implementation and change start- Offering flexibility to customers — building what they want, when they want it ing in 2001, according to Kevin —is a key benefit from the leaner operations at AM General's H1 Plant in Irvin, continuous improvement Mishawaka, IN. They're starting Phase II of a step-by-step approach that will manager here. "He took the right eliminate waste in all areas of the organization. approach, by appointing a dedicat-

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for possible implementation at H1, high product complexity, low vol- union has been very receptive and where four-wheel-drive vehicles are ume, and web-enabled communi- involved in the improvement assembled (see the box, About the cations. process. They understand that the H1 Assembly Plant"). Among the The facility's improvement plan is to balance work and make many learnings from other organiza- team realized that real change jobs easier, not to eliminate jobs." tions where lean practices had would depend on buy-in and matured: Be customer- and quality- involvement by everyone in the Setting Goals and focused throughout all operations; facility. "When you are talking Rolling Out Phase I implement pull systems; complexity about making changes — moving can be embraced in product offer- parts close to the line, workplace High-level goals set by the ings but not in logistics and produc- organization, eliminating walking improvement team, designed to tion; workplace organization (5S) is steps, etc. — you need ideas from "create a world-class operation," important; and learn how to imple- the people doing the work," said were challenging: 1) Be customer- ment returnable containerization Irvin. "When people can see how focused, 2) improve quality, 3) and multiple material delivery their feedback makes a difference reduce inventory, 4) reduce short- strategies. in the cleanliness and organization ages, 5) organize and standardize, Management realized that of the work areas, it breeds confi- and reduce complexity. The MIT long-time practices and policies — dence. Our union (UAW) is repre- developed a phased approach to what Irwin calls "monuments" — sented on our cross-functional lean improvements (see Figure 2). challenge lean revolution at a improvement team, along with Among many strategies they devel- brownfield operation such as the people from production, methods oped for this change initiative were: H1 plant. People are used to doing engineering, manufacturing engi- Identify internal and external cus- things the same way. Aside from neering, safety, quality, materials, tomers throughout operations, cre- the routines of an existing culture, and other areas (see Figure 1). The ate a plan and place for every part, the physical challenges of an older building present additional chal- lenges; visual management, parts on-line, and ergonomics may not have been part of the picture. First, the Diagnosis Mishawaka Improvement Team Shortages, inventory bulges, and disorganization hampered cus- Methods Plant Project Team Organization tomer service, and people at Mishawaka knew it. Their MIT UAW MIT Methods diagnosed a host of problems. For Engineering example, they noted the random Ergonomics put-away and delivery strategy for materials and in-plant central Materials material areas, resulting in poor Production inventory control and increasing inventories; poor internal commu- Safety Purchasing nication and with suppliers, con- tributing to inventory shortages and bulky inventory levels; and unnec- Mfg. Eng. Ind. Eng. essarily high part complexity as parts and part numbers proliferat- ed. Peer site visits to companies Facilities Human Quality such as John Deere, Bluebird, GM, Resources etc. revealed that lean could offer 23 "a better way" at union shops with Figure 1.

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an established level to the specific About the H1 Assembly Plant station at the correct time. Approximately 1000 production and 150 salaried employees work at the AM "Through a simple pull card system General HMMWV & H1 Assembly Plant in Mishawaka, IN. They assemble and min/max visual controls, we high performance four-wheel-drive vehicles for the military in the 550,000 have reduced line side space to the sq. ft. facility and also provide up-armor services (adding armor to military operator, reduced inventory in the vehicles). Previously the civilian HUMMER H1 was produced there as well. supply chain, and streamlined the It ceased production in June 2006. They use lean concepts to improve delivery process at small lot parts," process flow while meeting customer requirements for quality, delivery, and Irvin said. cost containment. This plant is adjacent to the AM General Assembly Plant. Employee Involvement An on-site vehicle test track and evaluation area is also part of the operations. Vehicles produced at Mishawaka go through rigorous track testing As in the AM General H2 plant to ensure that they meet quality and performance standards. next door, people at HI realized that they needed to start with the basics to gain buy-in for change. That meant listening to the folks who turn out the work day by day. "We implement a material pull system, opportunities by eliminating the inquired about their jobs and listened implement Logistics Optimization wastes of correction, overproduc- to their challenges and issues," said Center (LOC — an off-site ware- tion, material movement, motion, Irvin. "Then we started with work- house operation servicing the plant waiting, inventory, and processing. place organization on one line. on all material moves, sequencing, They targeted "low-hanging Then, based on the results, every- kitting, and packaging operations), fruit" workplace organization body asked for it — it exploded." and implement CMAs (Central (WPO) and 5S basics — in Phase 1. Acceptance of the "simpler" Material Areas in the plant for spe- The idea was that if all employees flow concepts reflects people- cific parts and locations). Parts could see immediate or short-term focused change. As work flow in "supermarkets," use visual man- improvements in their workplace, various areas was mapped and agement cues, conduct 5S disci- buy-in for added changes would evaluated, the operators were pline (Sort, Set, Shine, Standardize, gain momentum. Installing flow- asked for their ideas — setting parts Sustain), seek ergonomic improve- racks, organizing tool storage, and up and planning flow with more ments, and improve communica- pull systems implementation all than speed in mind. "We wanted to tions with suppliers through were part of Phase I. make changes in a way that opera- enabling technologies. Added to Implementing a pull system tors wanted, looking at ergonomic this challenging list was the goal of has enabled the plant to control the issues, for example," said Irvin. finding significant improvement flow of material to the operators at "Responsiveness to their ideas is

MIT Project — Phased Rollout Plan — Phases I and II

Phase I Phase II Work Place Organization (WPO) only: Full Mishawaka Improvement Team (MIT) plan: • Flow racks • Rebalance man assignments • Man-portable containers • Facility improvements • Pull systems • Safety and quality improvements

Figure 2.

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important, not necessarily having a Mike Peters from the IS&S a container. This strategy limits formal suggestion program." (Information Systems & Services) material quantity and container During the implementation on department (MIT) engaged an SAP size delivered lineside, based on the engine assembly line, an consultant to revamp systems demand. A pull tote is a trigger for ergonomic and safety survey delivery strategies as well as mate- CMA replenishment to the line. Pull revealed that an operator was rial pull strategies during the pilot racks are used for special materials undergoing therapy for soft tissue phase in 2001. External strategies as needed. For smaller parts such damage to her shoulder. The cause were implemented for direct ship- as fasteners with high container was determined to be manually ment from suppliers, milk runs, and quantity, an empty container is the rotating the to prop- timed deliveries. Internal strategies trigger. A min/max trigger applies erly torque the . from the LOC included repackaging for age-sensitive items such as oil Further investigation revealed that material to man-portable contain- stores; these items are managed previous operators had the same ers for tugger delivery, sequencing, within the plant CMA to a drop area history, with two operators having and kitting. in the department where they are had surgery. Their medical bills All of the materials required used. A min/max trigger is used for totaled more than $260,000 during engineering to maintain standardi- decals in the same manner. Regular the previous seven years. "We zation. Plan and Place for Every "report card and audit" procedures turned our industrial and facility Part (PFEP) data were generated —walk-abouts by superintendents engineer loose and tasked him to and loaded into SAP as each are — check whether materials are find alternatives to the manual went live. being delivered and pulled properly. rotation method," Moore said. The A pull card serves as a trigger result was a DC tool with pro- in their material pull system. Cards grammed stop points that followed are pulled before material is used in the torque sequence at the push of a button. The cost to resolve the ergonomic issue was $60,000. The payback was immediate: The affected operator was able to com- plete her therapy while continuing her job. According to Moore, "She wanted to stay on the job. Her fear was that she would have to leave a job which she enjoyed to reduce the stresses. Her seniority would have forced her into a much less desir- able position. We sent a strong message through the plant that we cared about our people and were serious about the changes we were implementing."

Material/Delivery Strategies Due to extreme complexity in the H-1 product offering, manage- ment decided to establish a Logistics Optimization Center (LOC). The LOC enabled the plant organization process to begin and gave a fast-strike approach to kick Figure 3. Thanks to increasing flexibility and capacity, up-armoring of military vehicles — adding off new strategies before using more armor (several inches thick) to being sent to combat areas can now be done at the them at the supplier level. Manager H1 facility.

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PDCA ing a lot of different configurations cases, with the cross-functional during the last eight weeks," he areas supporting this streamlined Standardization of processes continued. "We are not looking at parts flow. Material handling, main- and parts storage, etc. is essential to the same kinds of changes we did tenance, quality, purchasing, pro- a smooth-running pull system. "We last year. We try to apply lean con- duction, and vendor teamwork is are building acceptance that one cepts to kitting, sequencing, etc. so needed for speedy, repeatable parts constant thing is change," Irvin said. "We are never done, in this business. we don't overburden a station. delivery when needed. We need to standardize, maintain, People are receptive to changes then improve — PDCA or Plan, Do, when they know they will get the On to Phase II Check, Act. When you are working parts they need, for example." They and Phase III on trucks that can have 20,000 dif- average about 35 parts per station Although Irvin is hesitant to ferent configurations (such as a on an eight-minute cycle. Operator claim that all of the Phase I with the highest amount of feedback has powered work area improvements have been standard- ballistic armor on it), you need to changes so parts are accessible, ized, he noted that they are current- use lean processes and think identifiable, and replenishable as ly building on that experience for through the changes that will be needed, and resulted in reducing Phase II progress, and moving into needed. Planning the changes is key. the number of parts lineside. Phase III changes. "We're going into "A good example is that at the Getting buy-in for the new ways a more advanced lean system, end of the fiscal year, we are mak- has been challenging, in some looking at individual jobs and processes — operator methods," Irvin said. Rebalancing line assign- ments, developing new work area layouts, more changes in sequences and kitting, safety and quality improvements, and other changes — event displays and packaging — are anticipated. "We are working to eliminate waste throughout the organization, all the way through the supply chain," Irvin said. Space constraints are another concern; ways to reduce the footprint of various operations will be evaluated. "We are also looking at moving from a paper to an electronic Kanban system, and at becoming a forklift-free facility," Irvin said Operators are offering their suggestions for working "smarter" and more safely. For example, their ideas have resulted in parts presen- tation changes. On a trim line on a harness station, they have eliminated 1.2 miles of walking per week (or two marathons a year, Irvin said) through lean material presentation Figure 4. Vehicles built at the H1 facility on the new Up Armor Line. The military program name and efficient build processes with is Integrated Armor Program, or IAP, line. the operator. The previous method

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fast as we can to the men and women in the field. We have high Military customers have acknowledged morale here (many employees wear red clothing on Fridays as a sign of their increasing flexibility and capacity. camaraderie, for example), and we believe we are supporting our Up-armoring of vehicles — adding more troops by what we do here."

armor (several inches thick) to trucks Editor's notes: AM General continues being sent to combat areas, for example, to improve throughout the various operations using the techniques can now be done at the H1 facility. noted in the article. To see how hands-on lean training is adminis- tered at the adjacent HUMMER H2 facility, look for an AME event to be conducted late this summer. The assistance of Kevin Irvin and David Whitby of AM General in the develop- ment of this article is appreciated. involved a 650-ft. work area, using example, can now be done at the batch staging of parts and batch H1 facility. In the past, partially- prepping of parts. Operators used to assembled trucks were sent to travel 108.5 feet per unit — more than another plant where they were cut Lea A.P. Tonkin, Woodstock, IL is the 6800 feet per ten-hour shift. After apart and then remanufactured editor of Target Magazine. making lean improvements, their with the additional armor. "We are footprint size dropped to about 416 cutting leadtime dramatically on sq. ft. Single piece flow with no stag- giving the military finished, fully- ing of parts became the norm. armored vehicles," Irvin said. Operator distance traveled decreased "We're building versatility for our © 2007 AME® For information on reprints, contact: AME Association for Manufacturing Excellence to 88.5 feet per unit, or about 5575 customers, to give them what they www.ame.org feet per day. "We were able to mini- need when they need it. We're mize tool changeover, improve visu- applying lean manufacturing tech- al management, improve ergonomics niques to a complex build. We can and safety, implement mistake-proof- roll with the changes as long as we ing, and improve parts presentation," have a solid process." The up- Irvin said. armor line can handle 50 vehicles a day, compared to the previous pace More Flexibility, Responsive of six a day (accomplished with two Customer Service lines). "People here understand that Military customers have flexibility is important to serve our acknowledged their increasing flex- customers," continued Irvin. "We ibility and capacity. Up-armoring of put our heads together and get it vehicles — adding more armor done, working smarter and not (several inches thick) to trucks harder. Together we are finding being sent to combat areas, for better ways to deliver vehicles as

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