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The Impact and Benefits of
Continuous Improvement
The Continuing Journey
At Loewen
1
Fencon17
Feb.10th, 2017
Agenda
2
A conversation on the experience at Loewen…
• Starting out with lean tools
• Total systems approach
• “Lean” and Business culture
• Impact on the business
• How to step it up
About Loewen Founded in 1905 by C.T. Loewen as a lumber
mill
Created a sash and door joinery factory in 1919
During the 30s and 40s, produced beekeeping
equipment, church pews, and wood cross-
members for rural electrification
Started producing pre-assembled windows
(frame and sash) in 1948
Today Canada's largest wood window and door
manufacturer
5
Guiding Principles
Integrity - the cornerstone of Loewen culture;
keeping our promises
Passion - for customers, quality and performance
Innovation - relentlessly seeking the best, creating
unique solutions
Respect - for customers, employees, partners, the
community and the environment
Stewardship - giving back generously and sharing
our blessings
Courage - to follow our convictions, risk taking
Competitive Issues - Historical US Housing Starts
Competitive Challenges
Deliver more products & services faster, cheaper - at higher quality
Sustain and enhance gains - building on achievements to attract, retain, and inspire changing demographics
Be the supplier of choice – as supplier numbers are reduced
Thrive regardless of currency fluctuations
Adapt to changing trade realities
Compete & win – anywhere…. Now and in the future
Supply Chain Management - Maximize the business potential of an industrial sector …
Worlds Best Approach – Evolve to best in Business quickly
Competitive Issues - Historical Canadian Housing Starts
Production challenges – Example of mix variation
9
B B
What is ‘Lean’?
• Continuous Improvement thinking
• EVERYONE and EVERYDAY looking at ways to improve on how things get done
• Extensive tools set
• System to:
• Provide customer required quantity with defect free product & service
• Focus on eliminating waste and creating value to the customer
• Engage, empower & excite staff
• Increase the fun level for millennials
My Word Collection …
Simple
Visible
Flow
Data Driven
Repeatable
Ownership
Empowers People
Relentless Attack on Barriers
Data Drives Decisions
Attack the Process, Not the People
Honour the Past, Embrace the Future
Silence is Compliance
6S – Safety
What else is ‘Lean’ (Next level)?
11
Total Systems, Holistic, Systematic Approach to:
• Review your business
• Redefine your business model
• Determine, establish & set strategic direction
• Execute business strategies to generate a profit
• Change your culture
Total systems approach
The traditional approach has been to optimize sub-systems; the
total systems approach is to optimize the total system.
Total systems approach
Relating our Lean Program to our Organization’s Strategic Goals
& Culture is critical to success …
Often, in our eagerness to ‘get lean’, we fail to properly connect
our lean efforts with the ‘big’ picture, namely Customer needs
and the Business Strategy.
Then, in launching our Lean Program, we:
• Train to achieve Lean understanding
• Select a lean champion/team
• Select an appropriate area to begin
• Launch efforts such as 5S, JIT, Kanbans, 2 Second, Kaizen,
etc. in parallel
…. all in keeping with what we read and are taught.
A Generic Roadmap is tailored to our Business Situation …
A total systems approach ensures Change to Lean is Sustained
a rapid organizational transformation to Lean Manufacturing &
Support Processes
Incorporates the small steps with the significant efforts
Business Process Redesign & Culture Change Management
methodology is used to achieve the step change in performance
This enables the Company/Corporation to (quickly) attain
Cash flow & drop-through profits (lower costs)
Capacity to acquire greater market share
Customer performance to expand/capture markets
Manufacturing model for future products or operations
Achieve a Real Cultural Change to Lean
Value stream view of the Whole System
Inventory Relief
Quarterly Forecast
Sealed Units Shop Packs
Customer (H.O.)
DealerBuilder
Architect
Customer ChangesBest Case:
LT: 242 Min
VA: 81 Min
Worst Case:
LT: 2492 Min
VA: 186 Min
16
Order Entry
During Quote Process
5 Buyers
1 Admin Assistant
1 Procurement Specialist
5 – 10 P.O.s per day
Rework: <5%
LT: 6300 Min
VA: 177 Min
Purchasing
Glass SupplierCARDINAL CG/CARDINAL IG,PPG GLASS
Metal SupplierAPEL EXTRUSIONS LTD.
Standard Colours have a lead-time of 4 weeks
Lumber SupplierDouglas: 4-5 Week lead-time on firm orders from Group “A”
Mahogany: 3 month lead-time due to geographic location
CATTERMOLE TIMBER, SPRUCE TOP LUMBER, TRIAD
FOREST PRODUCTS
Hardware Supplier
Min order quantities
Batching of orders
Orders on Monday
$337,469 in Inventory
Glass represents 5.1% of
production on average
Turns 2.4 x month
Glass Receiving
Overall
30 – 55% Rework
47% Overall Scrap rate
From Breakout to Central
Inventory
32% Scrap Rate in BO 1&2
3 or 6-day cycle
25,000 – 30,000 pcs/day
Special Orders
50+ qty
2 Scan/Rip Machines
Breakout 1 & 2
10% Remake (of that Breaks 39%,
Defects 46, Order Error 11%, Supplier
4%)
53% of Redates due to Glass
LT: 2240 MIN
VA: 42
Glass Cutting
Estimate:
LT: 1350
VA: 120 MIN
Assembly
20-54' trailers
C/O 12 Min
Throughput 7089 Cubes
LT: 2700 Min
VA: 270 Min
24
Shipping
Ship
pin
g N
otice to D
eale
r
Ship to Customers Weekly
25,000 pcs
per day
16% Scrap Rate (Mill shop &
Paint)
Millshop
5,000 pcs per day
4% Rework
22% of Redates due to Metal
LT: 692 MIN
VA: 41 MIN
Metals Fabrication
Pick
During Quote Process
LT: 7350 Min
VA: 4818 Min
2
Sales &
Architectural
Services
Sales Process
Consistency, pricing, approval
LT: 60 Min
VA: 30 Min
Review/Posting
Customer Orders1-7 days
1-10
days
1 day
4 wks
(12 turns)
FIFO
OXOX
1 Scheduler
5 Planners
600 w/o per day total
LT: 1688 Min
VA: 112Min
Scheduling &
Production Planning
OXOX
Business Unit/Product Line
Optimization
Leveling
Expediting
Production
Coordination
Shop Packs
Picklists
5-7 days
$5 - $6MM
67 Working days
98 Accounting
days
1 day
1 - 2
days
$2,278,700 in Inventory
Metal represents 5.9% of
production on average
Turns .31 x month
Or once every 3.23 months
Metals Receiving
$718,757 in Inventory
Hardware represents 6.2%
of production (Feb)
Turns .5 x month
West Receiving
$1,314,876 in Inventory
Lumber represents 11.4% of
production on average
Turns 1 x month
10% of Redates due to
Lumber Stockouts
Lumber Receiving
12% Reject
Wood Components
Re-order
Flags
Load Lists
Shipping Schedule
1,000 Claims/mth
1,500 parts orders/mth
CT: 30 min
LT: 2,400 min
85-100/day
11 Advisors
Service /
Warranty
Customer Claims
Service Orders
Forecast history log flags
12 per week
4 Planners plus Coordinators
600 w/o per day total
80% Grilles (480), 1440 copies
printed
LT: 1 day
**Commodity Optimization**
Supply B.U.
Planning &
Coordination
Marketing
Mfg Eng
Quality
Design
Purchasing
LT: 1050 Min
VA: 150 Min
5
Approvals
Best Case
LT: 1152 Min
VA: 150 Min
Worst Case
LT: 3075 Min
VA: 573 Min
6
Drawings
A
B
C
D
E
F
If inventory turns once/month the
Annual Increased Revenue if this
money was invested would be
$438,445year
42 Working days
61 Accounting
days
8.8 Working days
12.7 Accounting
days
G
H
43910 Cubes on
Dock ~ 6 days of
inventory
I
J
Inventory Levels,
Aging of Components
Quality (subjective)
Monthly Remake Report 2006.xls
2006_RedateCauses.xls
2006_RedateCauses.xls
2006_RedateCauses.xls
February Monthly Metrics
(Purchasing) Powerpoint
February Monthly Metrics
(Purchasing) Powerpoint
February Monthly Metrics
(Purchasing) Powerpoint
February Monthly Metrics
(Purchasing) Powerpoint2006-Monthly Wood Scrap
Rates.xls
Best Case has one drawing
Worst case has 2 revisions
Although from start of process
average revisions/drawing is 5
WoodScrap
Report.xls
WoodScrapReport.xls
• 1988: Just-In-Time Manufacturing – WIP reduction – Production line balancing – Loewen Improvement Teams
• 2000: Continuous Quality Improvement – Implemented 5S – Began Total Productive Maintenance (TPM) Program – CQI charter teams
• 2003: Demand Flow Manufacturing – Assembly redesigns
• 2005: Lean Redesign – Manufacturing and Systems – Holistic Review
• 2015: Kaizen + Continuous Improvement + …. – 2 Second Lean
Loewen Continuous Improvement History
Continuous Quality Improvement – Foundation 5S
Demand Flow Manufacturing
19
Assembly processes
– Line designed for future demand
– Daily flow rates controlled by adding or
removing staff
– Materials available when and where required
– Pull system
20
TQC / Verify
Checks visible at each work station
“WORLDS BEST” GUIDING PRINCIPLES FOR REDESIGN
TIME
PE
RF
OR
MA
NC
E
Step
Change Step Change achieved by reducing
waste, increasing visibility, simplifying
structure & and reducing overheads.
A “Step Change” in performance was required
customer
requirements
analysis
current systems
analysis
financial
analysis
gap analysisstep change
targets
new process
design
boundary
definition and
natural grouping
definition
steady state
design
dynamic design
control systems
design
job design
implementation
planning
Roadmap to jump start into Lean Manufacturing
Establish Project Terms of Reference
23
The Terms of Reference is
an important Guiding
Document:
Project Introduction
Objective
Deliverables
Scope & Boundary
Targets
Metrics
Approach
Timeline
Resources/team
Administration & Controls
Sustainment
Document Revision Control
Terms of Reference
Awning Casement Redesign
Updated August 11, 2006 (June 5, 2006)
INTRODUCTION:
The next phase (concept stage) of redesigning operations to Lean has been approved by the Loewen Executive. This terms of reference will set the objectives & deliverables, scope & boundaries and outline the approach, timeline and resources required to complete the business unit design and implementation planning phases. Conversion of operations & support areas to lean is essential to support profitable growth, meet competitor challenges, enable improvements (safety, quality on time, costs, efficiency), overcome physical capacity constraints and to engage the talent of our employees. Awning Casement is selected to be the next department to undergo this conversion due the percentage volume of total plant product mix. It is the largest department in current operations and is expected to impact the largest number of employees.
OBJECTIVES AND DELIVERABLES*:
At the highest level, the objectives of this project are:
to achieve & sustain 100% on-time delivery; to reduce lead time to deliver product within two days per unit/basic; to reduce inventory by 80%, to eliminate sources of injury to integrate a new recessed mullion design and; to provide enough awning casement capacity to meet the forecast demand for the years 2007 to
2010 – including the ability to handle a 20% surge;
SCOPE & BOUNDARIES:
The project scope includes all business processes necessary to transform a customer order into awning & casement products ready for shipping. Specific process & layout boundaries will be determined during design, but the redesign effort will focus on achieving maximum, 100%, ownership. The concept design will outline the proposed ownership boundaries supported with rationale & data.
APPROACH, TIMELINE & RESOURCES
Phase 1 – Concept Design
Team Recruitment & Training (July, 3 weeks)
postings, selection criteria, selection of the Project Team, review, modification & agreement of the project TOR, communication of the project objectives, scope & approach to the plant & office staff.
Current State Data Collection
• Value stream maps of all processes related to the
Business Unit.
• Evaluate all historical data on product configurations.
• Obtain input on planned design changes.
• Review past safety, quality, scrap, service, on-time
and other key performance indicators.
• Calculate current space utilization.
• Determine ownership opportunities.
• Layout and existing infrastructure.
Loewen Lead-Time
“Office”
“Supply Chain”
Actual Assembly
‘Waterfall’ Diagram to understand holistic system
A high level design:
• requires the best market information - forecast
• reviews product data & processes - accuracy
• reviews physical layout – limitations
• performs a first cut product/business evaluation
… the basis may be initiated with a diagnostic
of an organization, much like a physical check-up.
Establish high level design parameters
Lean Redesign – Initial Objectives
27
– 100% on-time delivery
– Reduce quality non-conformance by 50%
– Product lead time – 2 days
– Inventory reduction by 80%
– 100% Ownership
– Eliminate sources of injury
Establish Guiding Principles
• Smaller, agile, and more cells
• Minimize sequencing risk in the process & remove
earlier than later
• Smaller, right sized equipment
• Seek opportunities for commonality
• Zero changeovers
• Zero coordination (i.e. no control systems)
• Keep parts of finished unit together as much as
possible
• Remove waste
• Addressing ergonomics
Assemble your Team
Establish Team Vision
Collect and sort data
Configure your Data (to drive decisions)
11 configurations make up 50% volume
82 configurations make up 30% volume
1434 configurations make up 20% volume
Look at Internal Suppliers (Wood Fabrication VSM)
Suppliers
AC METAL CLAD TPL TOP RAIL VSM
(REPEATERS)
PRODUCTION
PLANNINGSALES CUSTOMER
RIP SAW
#PEOPLE=
MACHINE # 1586,
1510
LT = 30 secs
CT = 12 secs
II
SCANNER
#PEOPLE= 1
MACHINE # 2294,
1731
LT = 20 secs
CT = 15 secs
AUX SAWS
#PEOPLE= 1
MACHINE # 1567,
1566, 1565, 1564,
1512, 1306, 1380
LT = 11 secs
CT = 10 secs
PLANNER
#PEOPLE=
MACHINE # 22 AL,
2236, 1272
LT = 15 secs
CT = 2 secs
GLUER
#PEOPLE= 1
MACHINE # 12717,
1215, 1167, 2214
LT = 10 min
CT = 1 min
MOULDER
#PEOPLE= 1
MACHINE # 1716,
1164, 1262, 1260
LT = 15 secs
CT = 2 secs
DOUBLE END
#PEOPLE= 1
MACHINE # 1750,
2256, 1639, 1140, 1138
LT = 1 min
CT = 2secs
MOULDER DIPPING
#PEOPLE= 1
MACHINE #
LT = 24 hrs
CT = 25 min
PAINT LINE
#PEOPLE= 1
MACHINE #
LT = 6 min
CT = 5 secs
BUYERSUPPLIER
I
UNLOAD WOOD
DAILY SCHEDULE
WOOD COMPONENT
PLANNER
ASSEMBLY
#PEOPLE=
MACHINE #
LT =
CT =
SHIPPING DOCK
#PEOPLE=
MACHINE #
LT =
CT =
#PEOPLE= 1
MACHINE # 1716,
1164, 1262, 1260
LT = 15 secs
CT = 2 secs
II
I
FINGER JOINTER
#PEOPLE=1
MACHINE # 1585
LT = 6 min
CT = 10 secs
I
I I I I I I I I
10 secs 2 secs 1 min 2 SECS 2 secs 2 secs 25 min
I
10 secs
15 secs12 secs
10 Days.72 Days .25 Days 1.5 Days .1 Days .1 Days 2.92 Days 1.16 Days 14.22 Days
5 secs
Production
Lead Time =
30.99 Days
Processing
Time = 26.83 min
30.97 Days
1610 Secs
VA = 1%
NVA = 99%
Lead Time – 31 days Process Time – 27min. VA – 1% NVA – 99%
Identify: Wood Fabrication Opportunities
HDWR
Transportation: Distance between lumber storage and central inventory – ½ mile
Inventory: 14 days of central inventory @ $467k
Motion: Supplier located far from customer
Waiting: 24hr wait period for preservative dip.
Overproduction: Large batch release from production planning
Defects: 35% of inventory is scrap @ $163k
Business Unit Space Utilization
Conduct a Natural Grouping Exercise
1. 1st pass takt time
2. By volume – runner, repeater, stranger
3. By attribute – size, weight, attachment, etc.
4. By work content – configuration & process
5. By house package
Natural Group Exercise – select ‘clumps’ of data
Lean Redesign – Conceptual Flow
38
Convert to Electronic: Business Unit Layout
660 basics/day (5 day avg.) Additional 330 basics/day (5 day avg.)
Cell #1
Ru
nn
er
Ce
ll
60
% o
f b
as
ic m
ix
(Sin
gle
/2W
AC
w/
sim
ple
SD
L)
Re
pe
ate
r/S
tra
ng
er
Ce
ll
40
% o
f b
as
ic m
ix
(Pu
sh
ou
t +
Fre
nch
Ca
se
me
nt +
Com
ple
x A
wn
ing
/Ca
se
me
nt w
/ Im
pa
ct)
-19 assembly people/shift
-7 min/basic takt time
-26 assembly people/shift
-12 min/basic takt time
Rough Cut
Wood
Glue
(1 - ?)
Plane
(1 - ?)Sash Mould
(1)
Prime
(1)Dryer Oven
(1)
Preservative
Application
Frame
Tenoner
(1-2)
Final
Cut
Frame
Mould
(1)
Paint Booth
(1-2)
Dryer Oven
(1, 2 passes)
Kanban
Cutstock
Sash M/C
Appl/Nail
Jambs
Idle
Sash Nail
& Drill
Apply
Hardware
Apply W/S
& Tape
Drop
S/U
Apply
Glazing Stop
Nail
Glazing
Stop
Jambs
Idle
Jambs
Idle
Jambs
Idle
Jambs
Idle
Jambs
Idle
Jambs
Idle
Clean S/UDrill Jambs
& Apply T/B
Notch Sill
Cover/SM’s
Tape/Fit
I/S SDL
Apply I/S
SDL
Nail
Mouldings
Tape/Fit
O/S SDL
Apply R/G &
Nail Sill
Cover
Apply O/S
SDL
Apply W/S
to Jambs
Apply
HardwareSash Idle
Frame
NailSash Idle
Mull &
Frame
M/CSash Idle
Apply Drip
CapSash Idle
Apply Ext.
& BullnoseSash Idle
Drop Sash
Screen
Build/Install
Sa
sh
Ris
k
Fra
me R
isk
Sash M/C
Appl./Nail
Jambs
Idle
Sash Nail
& Drill
Apply
Hardware
Apply W/S
& Tape
Drop
S/U
(incl. IMP)
Apply
Glazing Stop
Nail
Glazing
Stop
Jambs
Idle
Jambs
Idle
Jambs
Idle
Jambs
Idle
Jambs
Idle
Jambs
Idle
Clean S/UDrill Jambs
& Apply T/B
Notch Sill
Cover/SM’s
Tape/Fit
I/S SDL
Apply I/S
SDL
Nail
Mouldings
Tape/Fit
O/S SDL
Apply R/G &
Nail Sill
Cover
Apply O/S
SDL
Apply W/S
to Jambs
Apply
HardwareSash Idle
Frame
NailSash Idle
Mull&Frame
M/C + Apply
Drip CapSash Idle
Apply Ext. &
Bullnose+
Drop Sash
Screen
Build/Install
+ Packaging
SDL
Job Shop
Completion
Job Shop
Mull &Frame
M/C + Apply
Drip CapSash Idle
Apply Ext. &
Bullnose+
Drop Sash
Screen
Build/Install
+ Packaging
Spur 1Spur 2 Spur 3
Sash
Triggers
Start of
Frame
Build
Sash
Triggers
Start of
Frame
Build
SDL Bar
Notcher
M/C Cut
Sa
sh
Ris
k
Fra
me
Ris
k
Sash Tenon/
Tape
(<16)
Jambs
Idle
Sash Tenon/
Tape
(<16)
Jambs
Idle
M/C Cut
SDL Bar
Notcher
M/C
Cut/Tape
Packaging
M/C Cut/
Tenon/Drill/
Punch/Tape
Cell #2
Ru
nn
er
Ce
ll
60
% o
f b
as
ic m
ix
(Sin
gle
/2W
AC
w/
sim
ple
SD
L)
Re
pe
ate
r/S
tran
ge
r C
ell
40
% o
f b
asic
mix
(Pu
sh
ou
t +
Fre
nch
Ca
se
me
nt
+ C
om
ple
x A
wn
ing
/Ca
se
me
nt
w/
Imp
act)
-19 assembly people/shift
-7 min/basic takt time
-26 assembly people/shift
-12 min/basic takt time
Rough Cut
Wood
Glue
(1 - ?)
Plane
(1 - ?)Sash Mould
(1)
Prime
(1)Dryer Oven
(1)
Preservative
Application
Frame
Tenoner
(1-2)
Final
Cut
Frame
Mould
(1)
Paint Booth
(1-2)
Dryer Oven
(1, 2 passes)
Kanban
Cutstock
Sash M/C
Appl/Nail
Jambs
Idle
Sash Nail
& Drill
Apply
Hardware
Apply W/S
& Tape
Drop
S/U
Apply
Glazing Stop
Nail
Glazing
Stop
Jambs
Idle
Jambs
Idle
Jambs
Idle
Jambs
Idle
Jambs
Idle
Jambs
Idle
Clean S/UDrill Jambs
& Apply T/B
Notch Sill
Cover/SM’s
Tape/Fit
I/S SDL
Apply I/S
SDL
Nail
Mouldings
Tape/Fit
O/S SDL
Apply R/G &
Nail Sill
Cover
Apply O/S
SDL
Apply W/S
to Jambs
Apply
HardwareSash Idle
Frame
NailSash Idle
Mull &
Frame
M/CSash Idle
Apply Drip
CapSash Idle
Apply Ext.
& BullnoseSash Idle
Drop Sash
Screen
Build/Install
Sas
h R
isk
Fra
me
Ris
k
Sash M/C
Appl./Nail
Jambs
Idle
Sash Nail
& Drill
Apply
Hardware
Apply W/S
& Tape
Drop
S/U
(incl. IMP)
Apply
Glazing Stop
Nail
Glazing
Stop
Jambs
Idle
Jambs
Idle
Jambs
Idle
Jambs
Idle
Jambs
Idle
Jambs
Idle
Clean S/UDrill Jambs
& Apply T/B
Notch Sill
Cover/SM’s
Tape/Fit
I/S SDL
Apply I/S
SDL
Nail
Mouldings
Tape/Fit
O/S SDL
Apply R/G &
Nail Sill
Cover
Apply O/S
SDL
Apply W/S
to Jambs
Apply
HardwareSash Idle
Frame
NailSash Idle
SDL
Job Shop
Sash
Triggers
Start of
Frame
Build
Sash
Triggers
Start of
Frame
Build
SDL Bar
Notcher
M/C Cut
Sas
h R
isk
Fra
me
Ris
k
Sash Tenon/
Tape
(<16)
Jambs
Idle
Sash Tenon/
Tape
(<16)
Jambs
Idle
M/C Cut
SDL Bar
Notcher
M/C
Cut/Tape
Packaging
M/C Cut/
Tenon/Drill/
Punch/Tape
Cell #3
Ru
nn
er
Ce
ll
60
% o
f b
as
ic m
ix
(Sin
gle
/2W
AC
w/
sim
ple
SD
L)
Re
pe
ate
r/S
tra
ng
er
Ce
ll
40
% o
f b
as
ic m
ix
(Pu
sh
ou
t +
Fre
nch
Ca
se
me
nt
+ C
om
ple
x A
wn
ing
/Ca
se
me
nt
w/
Imp
act)
-19 assembly people/shift
-7 min/basic takt time
-26 assembly people/shift
-12 min/basic takt time
Rough Cut
Wood
Glue
(1 - ?)
Plane
(1 - ?)Sash Mould
(1)
Prime
(1)Dryer Oven
(1)
Preservative
Application
Frame
Tenoner
(1-2)
Final
Cut
Frame
Mould
(1)
Paint Booth
(1-2)
Dryer Oven
(1, 2 passes)
Kanban
Cutstock
Sash M/C
Appl/Nail
Jambs
Idle
Sash Nail
& Drill
Apply
Hardware
Apply W/S
& Tape
Drop
S/U
Apply
Glazing Stop
Nail
Glazing
Stop
Jambs
Idle
Jambs
Idle
Jambs
Idle
Jambs
Idle
Jambs
Idle
Jambs
Idle
Clean S/UDrill Jambs
& Apply T/B
Notch Sill
Cover/SM’s
Tape/Fit
I/S SDL
Apply I/S
SDL
Nail
Mouldings
Tape/Fit
O/S SDL
Apply R/G &
Nail Sill
Cover
Apply O/S
SDL
Apply W/S
to Jambs
Apply
HardwareSash Idle
Frame
NailSash Idle
Mull &
Frame
M/CSash Idle
Apply Drip
CapSash Idle
Apply Ext.
& BullnoseSash Idle
Drop Sash
Screen
Build/Install
Sas
h R
isk
Fra
me
Ris
k
Sash M/C
Appl./Nail
Jambs
Idle
Sash Nail
& Drill
Apply
Hardware
Apply W/S
& Tape
Drop
S/U
(incl. IMP)
Apply
Glazing Stop
Nail
Glazing
Stop
Jambs
Idle
Jambs
Idle
Jambs
Idle
Jambs
Idle
Jambs
Idle
Jambs
Idle
Clean S/UDrill Jambs
& Apply T/B
Notch Sill
Cover/SM’s
Tape/Fit
I/S SDL
Apply I/S
SDL
Nail
Mouldings
Tape/Fit
O/S SDL
Apply R/G &
Nail Sill
Cover
Apply O/S
SDL
Apply W/S
to Jambs
Apply
HardwareSash Idle
Frame
NailSash Idle
SDL
Job Shop
Sash
Triggers
Start of
Frame
Build
Sash
Triggers
Start of
Frame
Build
SDL Bar
Notcher
M/C Cut
Sas
h R
isk
Fra
me R
isk
Sash Tenon/
Tape
(<16)
Jambs
Idle
Sash Tenon/
Tape
(<16)
Jambs
Idle
M/C Cut
SDL Bar
Notcher
M/C
Cut/Tape
Packaging
M/C Cut/
Tenon/Drill/
Punch/Tape
Universal Wood Fabrication Cell
(Supplies all AC cells)
Mull&Frame
M/C + Apply
Drip CapSash Idle
Apply Ext. &
Bullnose+
Drop Sash
Screen
Build/Install
+ Packaging
Completion
Job Shop
Mull &Frame
M/C + Apply
Drip CapSash Idle
Apply Ext. &
Bullnose+
Drop Sash
Screen
Build/Install
+ Packaging
Spur 1Spur 2 Spur 3
Mull&Frame
M/C + Apply
Drip CapSash Idle
Apply Ext. &
Bullnose+
Drop Sash
Screen
Build/Install
+ Packaging
Completion
Job Shop
Mull &Frame
M/C + Apply
Drip CapSash Idle
Apply Ext. &
Bullnose+
Drop Sash
Screen
Build/Install
+ Packaging
Spur 1Spur 2 Spur 3
-receive wood jags-rip/sort/scan/pile cut stock
-auxiliary saws-finger joint-glue up partsglued up wood components-wood sticks (non glued up)-rework material-shipping/sash blocks-poplar board
-receive lineal metal clad/glass/spacer bars-inspect lineal metal clad/glass/spacer bars-inventory lineal metalclad/glass/spacer bars-trouble shoot materialissues
-customer liasonfor clarification/changes-inputs customerconfigurationrequirements
-acquisition of rawmaterial (allcommodities)-sourcing new suppliers/commodities-trouble shooting &corrective action of mtl.-material ETA’s
-time & attendance-benefits-employee issues
-vacation-performance reviews-hiring/terminations-arrange social functions-payroll issues
Specialty-receive AC basics
-build shape SDL-build shape product
-provide butt hinge router to AC-use AC FCA & multipoint equip
-use AC wood, metal & hardware
Everyone Else-receive AC basics
-build shape product (cyp)-use AC wood parts (cyp)
-use AC hardware
-creates/maintains workinstructions-new process training-process improvements(trouble shooting)-implements new products/processes-product approvals-fixtures/tool design-lock out/tag out procedure
-designs new products/processes-maintain products-writes/releases pcn’s-support documentation-trouble shooting-product certifications &testing-support drafting, productplanning, service
-inputs product
configurationdata(new &revisions)
-Mould parts-Double endparts-Dip parts
-pc support-purchase hardware-software support-websitedevelopment/maint
-provides employeetraining & development-career planning-set up external training-orientation-hosting, etc.
-produces shopdrawings-liaison w/ customer(clarification,changes)-product approvals-autolisp support
-schedules workload-distributes work to supply& assembly-liaison between mfgdepartments & sales-inventory control-coordinating shop pacs toline
-expediting lates
-ordering-maintains/suppliesshop supplies-special p/u’s-supply first aid/ppe’s-p/u parts fordowntime equip
-receives, stores& deliverssuppliesconsumables
-pick parts-cut bars-corner fitting-cut/apply mesh-drill bars for pins-apply screen pins-deliver screens-supply remakes (ACphysically takes them over)
-provide air, lights, heat,humidification-garbage removal-floorwashing-dust rafters-eye wash station upkeep-fire ext. safety checks
-equipmentmaintenance/pm’s-upkeep of electrical,air, suction-air tool repairs-service mtl handlingequipment-sign-off on new equip
-field service offinished goods-pick service partsfrom AC-inspect serviceparts
-stores finished goods-p/u finished goodsfrom Asmbly-p/u product outside ofSteinbach-package s/u’s-stages/load housepackages intocontainers
-cut to length & widthstandard wood parts-notch wood parts-deliver non std woodparts to AC-delivery of recuts
-receive glass/bars
-pick glass/bars-cut glass/bars
-edge delete/stamp glass-wash glass
-bend bars-make internal grills
-desiccant fill bars-apply butyl
-assembly
-secondary seal-completion
-staging-sequencing/deliver
-p/u empty a-frames-supply remakes
-apply cap tube-repairs (buffs, patches)
-pick metal from MetalReceiving-cut metal-route metal-tape metal-stage metal-deliver processed metal-process remakes-process/deliver nail flange
-rough scuffwood parts-paint/primeparts-hand spray(special colors)
-material handling of wood parts
-inventory counts-pick wood parts-pick wood parts for MillshopCutting-measure scrap-replenish loads to central-pick/deliver primed/painted mtl-transport packaging/sash/frameblocks-coordinate remakes
-TQC/Verify support-process/finishedgoods inspection-material/process
support & changes
Breakout
HumanResources
Metal/Sealed UnitReceiving
Quality
Millshop
Purchasing
Assembly(non AC)
Order Desk
Mfg. Eng.Stores
ProductDevelopmentPDM/BOMDraftingInformation
TechnologyProductionPlanning
EmployeeDev.
MillshopCutting
Shipping
WestReceiving
Sealed Units
Metal CuttingPower
Engineering
Screening(non POC)
ServiceMaintenance
PaintingCentral
Inventory
-assemble perimeter
wood grilles-cut/notch sdl woodbars-kit sdl bars by batch-sdl recuts
Grilles
-P & L report-budgetinformation-variance reports
-product costing-payroll admin.
Finance(payroll, accounting,
costing)
-sharpen tooling-develop/prototypetooling
-prepare drawings-machine programspecifications
GrindingRoom
-run lab-build prototypes-product testing-source newmaterials
R & D
-provide safe workprocedures-coordinate back towork-provide safety shoes &prescription glassesforms (req’s)-ergonomic support-safety commities
Health & Safety
-develop & supportdealer orderingsoftware
Quotemaster
-p/u grills & SDL kits-department orientation of new employees-p/u metal clad SDL lineal length-build basics (non shape) for other departments-build combinations (non shape) for other departments-build pushout & french casement pushout screens-produce SDL shapes on red cell only)-quality & job training-employee review-cut extensions & attachments-build/package finished products-build sub-assemblies (spreadmulls)-stock/maintain POUR’s-replenish line material (kanbans)-CNC router supplies specialty routed mouldings & sash-sequence completion material (attachments)-process/supply service parts-order wood, metal, glass remakes-continuous quality improvement (i.e. 5S’ing)-order hardware-daily safety checks-deliver/pick up millshop recuts-pick up screen remakes-service POC screens-build display units-build corner sections
Awning/Casement
-AS400 build/sequencelist-verbal remake request
-Mary S in person
-written employee request forms-written/electronic performanceevaluations
-written time & attendance documents-written/electronic paystubs-verbal payroll issues-verbal advice for performance issues-verbal direction for employees-limited on Eve shift since HR is onlyhere until 5:00pm-Candace, Colleen, Val, Sara via phone
-AS400 sequence list-AS400 remake request-verbal trigger for sealed unitsdelivery-verbal service request (buff, seals,cap tubes)-verbal signoff on material quality-Matt Martens via phone
-written dock & process inspection-verbal feedback on inspectionresults-verbal material sign-off-Mike B & Eddie W via phone
-verbal defect feedback-verbal expediting of late product-Brian T via phone
-verbal stockout inquiries-special requisition stockouts-stockouts are communicated tothe eve shift through reports, dayshift leadership or otherdepartments-eve shift has no contact withpurchasing-Brian W., Janice F, Ernie F viaphone
-verbal expediting of late/missingbasics-verbal request to build shape sdl-written wood component issue sheet-Team Leads or Coordinators verbally
-verbal order clarification(very limited on eve shift since mostclarification occurs on day shift)-Sales via phone
-verbal workinstruction clarification-verbal processimprovement requests
-limited support on eve shift-Jan F via phone
-written signout of supplies-email or voicemail for specialrequests and special orders-Jim via phone
-sdl drawings/specifications
-verbal/written order clarification-non existent on eve shift-drafting via phone/in person
-verbal/written remake request-written repair tag-verbal material signoff-Roy/Kathy via phone
-electronic picklist requirements-“rush” electronic material delivery-Bernard via phone
-verbal expediting of lates-verbal feedback on damaged finishedgoods-Adolf/Wendy via phone
-verbal inquiries/expediting about impactglass-Gary Starkman (glass) & Don G. (m/c) viaphone
-AS400 re-cut request-phonecalls for re-cuts-verbal/written stockout updates-verbal signoff on material-Team Leaders via phone
-verbal/page for facilitiesrepair & garbage removal-Rose via phone
-AS400 sequence list-verbal remake request (physically takedamaged screen to screening-verbal/written stockout update-Rodney/Ann via phone
-verbal downtime request-air tool kanban-written work request-verbal signoff to free up m/c for PM
-written/verbal request-written request for handspray-Brian via phone
-most communication w/painting is through CI-written scrap-verbal defect feedback-pkg block kanban-Mary R. via phone
-verbal - - - wrong info. On shop pac
-verbal - - - missing info.-verbal - - - s/u info unclear-verbal - - - units sent down the wrong line
- Admin.
- Mfg. 34% current ownership to
75% future ownership-receive wood jags-rip/sort/scan/pile cut stock
-auxiliary saws-finger joint-glue up partsglued up wood components-wood sticks (non glued up)-rework material-shipping/sash blocks-poplar board
-receive lineal metal clad/glass/spacer bars-inspect lineal metal clad/glass/spacer bars-inventory lineal metalclad/glass/spacer bars-trouble shoot materialissues
-customer liasonfor clarification/changes-inputs customerconfigurationrequirements
-acquisition of rawmaterial (allcommodities)-sourcing new suppliers/commodities-trouble shooting &corrective action of mtl.-material ETA’s
-time & attendance-benefits-employee issues
-vacation-performance reviews-hiring/terminations-arrange social functions-payroll issues
Specialty-receive AC basics
-build shape SDL-build shape product
-provide butt hinge router to AC-use AC FCA & multipoint equip
-use AC wood, metal & hardware
Everyone Else-receive AC basics
-build shape product (cyp)-use AC wood parts (cyp)
-use AC hardware
-creates/maintains workinstructions-new process training-process improvements(trouble shooting)-implements new products/processes-product approvals-fixtures/tool design-lock out/tag out procedure
-designs new products/processes-maintain products-writes/releases pcn’s-support documentation-trouble shooting-product certifications &testing-support drafting, productplanning, service
-inputs product
configurationdata(new &revisions)
-Mould parts-Double endparts-Dip parts
-pc support-purchase hardware-software support-websitedevelopment/maint
-provides employeetraining & development-career planning-set up external training-orientation-hosting, etc.
-produces shopdrawings-liaison w/ customer(clarification,changes)-product approvals-autolisp support
-schedules workload-distributes work to supply& assembly-liaison between mfgdepartments & sales-inventory control-coordinating shop pacs toline
-expediting lates
-ordering-maintains/suppliesshop supplies-special p/u’s-supply first aid/ppe’s-p/u parts fordowntime equip
-receives, stores& deliverssuppliesconsumables
-pick parts-cut bars-corner fitting-cut/apply mesh-drill bars for pins-apply screen pins-deliver screens-supply remakes (ACphysically takes them over)
-provide air, lights, heat,humidification-garbage removal-floorwashing-dust rafters-eye wash station upkeep-fire ext. safety checks
-equipmentmaintenance/pm’s-upkeep of electrical,air, suction-air tool repairs-service mtl handlingequipment-sign-off on new equip
-field service offinished goods-pick service partsfrom AC-inspect serviceparts
-stores finished goods-p/u finished goodsfrom Asmbly-p/u product outside ofSteinbach-package s/u’s-stages/load housepackages intocontainers
-cut to length & widthstandard wood parts-notch wood parts-deliver non std woodparts to AC-delivery of recuts
-receive glass/bars
-pick glass/bars-cut glass/bars
-edge delete/stamp glass-wash glass
-bend bars-make internal grills
-desiccant fill bars-apply butyl
-assembly
-secondary seal-completion
-staging-sequencing/deliver
-p/u empty a-frames-supply remakes
-apply cap tube-repairs (buffs, patches)
-pick metal from MetalReceiving-cut metal-route metal-tape metal-stage metal-deliver processed metal-process remakes-process/deliver nail flange
-rough scuffwood parts-paint/primeparts-hand spray(special colors)
-material handling of wood parts
-inventory counts-pick wood parts-pick wood parts for MillshopCutting-measure scrap-replenish loads to central-pick/deliver primed/painted mtl-transport packaging/sash/frameblocks-coordinate remakes
-TQC/Verify support-process/finishedgoods inspection-material/process
support & changes
Breakout
HumanResources
Metal/Sealed UnitReceiving
Quality
Millshop
Purchasing
Assembly(non AC)
Order Desk
Mfg. Eng.Stores
ProductDevelopmentPDM/BOMDraftingInformation
TechnologyProductionPlanning
EmployeeDev.
MillshopCutting
Shipping
WestReceiving
Sealed Units
Metal CuttingPower
Engineering
Screening(non POC)
ServiceMaintenance
PaintingCentral
Inventory
-assemble perimeter
wood grilles-cut/notch sdl woodbars-kit sdl bars by batch-sdl recuts
Grilles
-P & L report-budgetinformation-variance reports
-product costing-payroll admin.
Finance(payroll, accounting,
costing)
-sharpen tooling-develop/prototypetooling
-prepare drawings-machine programspecifications
GrindingRoom
-run lab-build prototypes-product testing-source newmaterials
R & D
-provide safe workprocedures-coordinate back towork-provide safety shoes &prescription glassesforms (req’s)-ergonomic support-safety commities
Health & Safety
-develop & supportdealer orderingsoftware
Quotemaster
-p/u grills & SDL kits-department orientation of new employees-p/u metal clad SDL lineal length-build basics (non shape) for other departments-build combinations (non shape) for other departments-build pushout & french casement pushout screens-produce SDL shapes on red cell only)-quality & job training-employee review-cut extensions & attachments-build/package finished products-build sub-assemblies (spreadmulls)-stock/maintain POUR’s-replenish line material (kanbans)-CNC router supplies specialty routed mouldings & sash-sequence completion material (attachments)-process/supply service parts-order wood, metal, glass remakes-continuous quality improvement (i.e. 5S’ing)-order hardware-daily safety checks-deliver/pick up millshop recuts-pick up screen remakes-service POC screens-build display units-build corner sections
Awning/Casement
-AS400 build/sequencelist-verbal remake request
-Mary S in person
-written employee request forms-written/electronic performanceevaluations
-written time & attendance documents-written/electronic paystubs-verbal payroll issues-verbal advice for performance issues-verbal direction for employees-limited on Eve shift since HR is onlyhere until 5:00pm-Candace, Colleen, Val, Sara via phone
-AS400 sequence list-AS400 remake request-verbal trigger for sealed unitsdelivery-verbal service request (buff, seals,cap tubes)-verbal signoff on material quality-Matt Martens via phone
-written dock & process inspection-verbal feedback on inspectionresults-verbal material sign-off-Mike B & Eddie W via phone
-verbal defect feedback-verbal expediting of late product-Brian T via phone
-verbal stockout inquiries-special requisition stockouts-stockouts are communicated tothe eve shift through reports, dayshift leadership or otherdepartments-eve shift has no contact withpurchasing-Brian W., Janice F, Ernie F viaphone
-verbal expediting of late/missingbasics-verbal request to build shape sdl-written wood component issue sheet-Team Leads or Coordinators verbally
-verbal order clarification(very limited on eve shift since mostclarification occurs on day shift)-Sales via phone
-verbal workinstruction clarification-verbal processimprovement requests
-limited support on eve shift-Jan F via phone
-written signout of supplies-email or voicemail for specialrequests and special orders-Jim via phone
-sdl drawings/specifications
-verbal/written order clarification-non existent on eve shift-drafting via phone/in person
-verbal/written remake request-written repair tag-verbal material signoff-Roy/Kathy via phone
-electronic picklist requirements-“rush” electronic material delivery-Bernard via phone
-verbal expediting of lates-verbal feedback on damaged finishedgoods-Adolf/Wendy via phone
-verbal inquiries/expediting about impactglass-Gary Starkman (glass) & Don G. (m/c) viaphone
-AS400 re-cut request-phonecalls for re-cuts-verbal/written stockout updates-verbal signoff on material-Team Leaders via phone
-verbal/page for facilitiesrepair & garbage removal-Rose via phone
-AS400 sequence list-verbal remake request (physically takedamaged screen to screening-verbal/written stockout update-Rodney/Ann via phone
-verbal downtime request-air tool kanban-written work request-verbal signoff to free up m/c for PM
-written/verbal request-written request for handspray-Brian via phone
-most communication w/painting is through CI-written scrap-verbal defect feedback-pkg block kanban-Mary R. via phone
-verbal - - - wrong info. On shop pac
-verbal - - - missing info.-verbal - - - s/u info unclear-verbal - - - units sent down the wrong line
- Admin.
- Mfg. 34% current ownership to
75% future ownership
Future State Boundary Analysis
Dynamic Design “Hands on” Simulation
41
Simulate process to test variables such as mix, downtime, etc.
Design the Skills Matrix
42
Last Updated: 1 =
2 =Total Employees 27 ##### 891 25 FTE 3 =
Total Jobs 33 #REF! 26% (level 2-4) 2 P/T 4 =
Total # Needed 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 2
# of Trainers (4) 4 3 7 7 8 6 5 5 5 16 7 9 8 5 8 6 4 3 7 11 8 8 5 4 4 4 4 4 1 3 1 0
# Fully Trained (3) 1 1 4 3 3 3 2 5 5 2 0 2 2 5 3 5 0 0 1 4 1 1 0 2 0 0 0 1 0 0 0 0
# In Training (2) 4 1 1 1 3 1 1 4 4 0 1 0 0 3 0 0 0 4 1 1 1 1 3 1 2 4 2 1 2 1 0 0
Total Still Required -6 -2 -9 -8 -11 -7 -5 -11 -11 -15 -5 -8 -7 -10 -8 -8 -1 -4 -6 -13 -7 -7 -5 -4 -3 -5 -3 -3 0 -1 1 0
Hrs. for Training
Total Training Hours 0
Employee Name
Kit
tin
g
BB
Q S
aw
/ N
CL
ex
t.
Cu
t e
xt
co
ve
rs, s
top
s a
nd
in
terl
oc
k
Pre
p a
nd
cu
t e
xt
fra
me
/ H
AA
S
Cu
t a
nd
pre
p f
ram
e v
iny
l
Cu
t in
eri
or
fra
me
an
d s
as
h
Cu
t in
teri
or
fra
me
Te
no
n in
teri
or
/ e
xte
rio
r fr
am
e a
nd
sa
sh
Pre
p in
teri
or
fra
me
/ p
rep
sa
sh
fo
r h
ard
wa
re
Dip
pin
g
Ko
ch
- D
ow
el a
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dri
ll
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na
ilin
g
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me
as
se
mb
ly(b
ala
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ck
sh
oe
,fu
zzy
)
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sh
bu
ild
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mm
et
dri
llin
g
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me
me
tal a
pp
SU
pre
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zin
g
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ree
nin
g
Ex
teri
or
sa
sh
ap
p
Cle
an
sa
sh
SD
L -
in
teri
or
SD
L -
ex
teri
or
Fra
me
na
il, w
ea
the
rstr
ip
Sa
sh
ha
rdw
are
Ex
teri
or
co
mp
leti
on
/ a
tta
ch
me
nts
, S
cre
en
in
sta
ll
Mu
llin
g
Ex
teri
or
Pa
ck
ag
ing
Inte
rio
r c
om
ple
tio
n -
sto
ps
an
d a
tta
ch
me
nts
Ha
ng
ing
Inte
rio
r P
ac
ka
gin
g
Co
mp
lex
SD
L
Cu
ttin
g C
ell
Sh
ap
es
Bu
ild
Emploee 1 2 2 2 4 2 2 4 4 4 2 4 4
Employee 2 2 2 2 4 4 3 2 2 2 3
Employee 3 4 2 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 2 4 4 2 2
Employee 4 3 3 4 3 3 4 4 4 2 3 2
Employee 5 4 4 4 3 3 4 4 4 4 4 4 2 4 4 4 4 4 4 4 4 2
Employee 6 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 2 4 4 3 3
Employee 7 2 2 2
Employee 8 2 2 4 4 4 4 4 3 4 4 4 4 4 4 4 4 4 4
Employee 9 3 3 3 3 3 2 2 3 3 3 3 3
Employee 10 3 3 3 3 3 1 1 1 1 1 1
Employee 11 2 2 3 2 4 4 4 2 2
Employee 12 2 2 2 4 4 4
Employee 13 4
Employee 14 3
Employee 15 2 4 4 4 4 4 4 4 4 3 4 4 4 4
Total # Needed 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 2 0
# Trained 2 1 5 5 5 4 4 5 5 9 2 7 6 5 5 5 3 2 4 9 6 6 3 6 2 2 2 3 1 1 1 0
# In Training 2 1 1 1 2 1 1 4 4 0 0 0 0 2 0 0 0 2 1 1 1 1 2 1 1 2 1 1 2 0 1 0
Total Still Needed -1 1 -3 -3 -4 -2 -2 -6 -6 -6 1 -4 -3 -4 -2 -2 0 -1 -2 -7 -4 -4 -2 -4 0 -1 0 -1 0 2 0 0
fully trained
fully trained, can train others
identified for training
In training
Cross Training Matrix
January 27,2016 Updated by: Leader
43 T
ransom
Assem
bly
Pre
serv
ative a
pplic
ation
Assem
bly
Insta
lled
Wood C
om
ponent
Pic
kin
g
Vin
yl C
uttin
g
Grille
Notc
hin
g &
Assem
bly
/ M
eta
l T
enonin
g
Wood F
abrication -
S
ash &
Fra
me
Wood F
inis
hin
g
Pre
serv
ative D
ryin
g
Scre
en A
ssem
bly
Wood F
abrication -
Mis
c
Ste
el D
oor
F
ram
e A
ssem
bly
Meta
l C
uttin
g
Design Baseline
0%
20%
40%
60%
80%
100%
30/1
1/2
005
04/1
2/0
6
10/0
1/0
6
11/0
1/0
6
12/0
1/0
6
01/1
5/0
7
03/1
2/0
7
03/3
0/0
7
03/3
0/0
7
04/0
6/0
7
04/1
2/0
7
04/1
6/2
007
04/1
6/2
007
05/2
3/0
7
09/2
8/0
7
TD Ownership (%) Forecast %
Current %
Design Baseline
Bridge to New System Design
Lean Redesign in Manufacturing
44
45
Redesign Results
25.0%
30.0%
35.0%
40.0%
45.0%
Q1 2006 Q2 2006 Q3 2006 Q4 2006 Q1 2007 Q2 2007 Q3 2007 Q4 2007 Q1 2008 Q2 2008 Q3 2008 Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q1 201010.0%
15.0%
20.0%
25.0%
30.0%
Material % Labor %
CHART - Terrace Door Reengineering Process - Labor /material costs as % of Sales
Then the
processes
and culture
change take
hold and the
improvement
is dramatic
It got a lot worse
before it got better!
46
Culture Change is always a Challenge
• Lean & continuous improvement is mainly about CULTURE CHANGE
• But also Process, flow, process
• But - mainly culture
o 20% technical (process), 80% soft (people)
• Establishing ownership by the people (grassroots)
o Developing problem-solving skills
• Had to change the mindset of most of the leaders……
Results often Exceed Expectations
48
Initial Redesign Results – Terrace Door
• On-Time Delivery
50% to 85%
• Manufacturing labor
25+% cost improvement
• Indirect material handling
80% reduction
• Material costs
5% cost improvement
• Inventory turns (WC)
$1M inventory reduction in 6
months
49
Further progress since the initial
Redesigns ….
Visual Factory – KanBan Inventory
Before After
Multi Card Kanban Quasi MRP
Lean Redesign in Office
51
Office Lean – Business Information Systems Redesign
52
Office Lean – Business Information Systems Redesign
53
Kaizen Events
54
Continuous Improvement Culture –
Safety/Production/Quality
55
Executive
Gemba walks
56
Training U
• Assembly cell set up for skills training
• All new employees train in production cell until
they are ready to be assigned to a department
based on their capabilities
• Existing employees go through refreshers
Training Within Industry
57
• Developed during WWII
• Three TWI components available
1. Job Instruction
• HOW to complete standardized work
2. Job Relations
• LEADING to create good relations; preventing & handling people issues
3. Job Methods
• CI methodologies
• Job Instruction (JI) recommended
– Very prescribed & standardized training methodology
– Uses verbal, demonstration & hands-on doing instruction
– Students learn through repetition, memorization & demonstration
– Students learn the tasks steps, key points & reason(s) why for each step
Levels of Change
58
As an organization develops it’s continual
improvement approach, levels of change
become apparent in terms of change impact,
resource required, approval levels, timing,
etc.
Level 1: No major capacity or capability
changes, normal business unit / work station
improvements; 5S, JIT, kanban, 2 second
lean, C.I.s, etc.
Level 2: system changes within a business
unit, requires facilitation; kaizen, equipment /
process impact changes, control system
adjustments; requires transformation
methodology.
Level 3: enterprise wide transformation
changes, business unit redesign, company
wide system changes; requires
transformation project team structure and
methodology.
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DEFINITION ASSESS IMPACT DEFINITION & ANALYSIS PROCESS REVIEW & GROUPING ANALYSIS DESIGN MODEL FOR OPERATIONS DYNAMIC TEST OF SSD MODEL IMPLEMENTATION PLAN & EXECUTION
OPPORTUNITY STATEMENT OBTAIN & TRANSLATE SALES FORECASTS HISTORICAL CONFIGURATION ANALYSIS REVIEW PROCESSES: REMOVE NVA, INPUT SSD MODEL SSD SENSITIVITY ANALYSIS EXECUTE IMPLEMENTATION PLAN
STRATEGIC VALUE INTO PRODUCTION VOLUMES PRODUCT DEVELOPMENT SCOPE DEFINITION FUTURE CONFIGS & REDESIGN PROCESS LIST DEFINE FLEX CRITERIA DETAILED ODL, TIMELINE & ACTIONS
SWOT OBTAIN MARKETING INPUT INTO BUSINESS ANALYZE CURRENT STATE WASTE (NVA) LABOUR / RESOURCES FLEX THE DESIGN, NOTE OUTCOMES
ASSUMPTIONS TRENDS CURRENT SYSTEM SUMMARY NEW PRODUCT INTRODUCTIONS (NPI) # OF WORKSTATIONS PERFORM SIMULATION TESTING LAUNCH & MAINTAIN BUDGET MANAGEMENT
INPUT/OUTPUT DIAGRAM- HIGH LEVEL VOICE OF THE CUSTOMER BILLS OF MATERIAL OF COMPONENTS ID CRITICAL NPIs # OF EQUIPMENT TEST & CONFIRM SSD MODEL
CURRENT STATE VSM & FLOW DIAGRAMS ID NPIs WITHIN PROJECT SCOPE FLOOR SPACE REQUIREMENTS SUMMARIZE FINDINGS SPECIFIC PROCESS TRAINING
HIGH LEVEL DIAGNOSTIC DATA HIGH LEVEL PROCESS MAP/VSM CONTROL SYSTEMS ASSESS RISK OF DELAYED NPIs DETAILED LAYOUT
CUSTOMER / SUPPLIER RELATIONSHIPS & SAFETY & ERGONOMICS FINALIZE NEW PRODUCTION INTRODUCTION BALANCED LINE FINALIZE SSD MODEL BUSINESS UNIT SUPPORT
TERMS OF REFERENCE & BOUNDARIES SKILLS MATRIX *** SIGN-OFF: PRODUCT DEVELOPMENT *** FINALIZE LAYOUT
SCOPE DEFINE ALL COMPONENTS BOUNDARY ANALYSIS INFRASTRUCTURE CAPACITIES CREATE IMPLEMENTATION STORYBOARD
DELIVERABLES DELIVERY DIAGRAMS (SPAGHETTI) - H.L. CURRENT KPIs HISTORICAL MANUFACTURING ISSUES REVIEW EQUIPMENT PLAN INTEGRATION & CONTROL SYSTEM COMMUNICATION & INFO PLAN EXECUTION
RESOURCES INVENTORY $$$ REVIEW MATERIAL ISSUES WITH PROCESS CONSTRAINTS DEFINED DESIGN PROCESS COMPLETION
TIMELINE (HIGHLEVEL ODL) HIGH LEVEL SSD MODEL (SPREADSHEET) LEAD TIME CONTROL SYSTEMS RELEASE LONG LEAD TIME EQUIPMENT P.O.s
COMMUNICATION PLAN BEGIN DESIGN BINDER PRODUCTION VOLUMES CREATE IDEAL STATE (GREENFIELD) HUMAN RESOURCING PLAN
ADMINISTRATION QUALITY DATA CREATE IMPLEMENTATION PLAN CREATE/UPDATE COMMISSIONING PLAN
SUSTAINMENT EQUIPMENT PERFORMANCE HISTORY CREATE FUTURE STATE MAP 1st DRAFT BUDGET (based on Concept) ODL OF IMPLEMENTATION
FACILITIES ANALYSIS 1st DRAFT CBA TRANSITION PLAN METRICS, REPORTS AND VISUAL CONTROLS
LEADERSHIP RECRUITMENT HISTORICAL LINE DESIGN ANALYSIS DEFINE GAP & CONSTRAINTS EQUIPMENT PLAN INITIATE KPIs
TEAM FORMATION & PLANNING CONFIGURATION DEFINITION PRODUCTION INFORMATION REQUIREMENTS INFRASTRUCTURE AND FACILITIES PLAN
TEAM TRAINING CONFIGURATION/COMPONENT PROCESS CREATE HIGH LEVEL DESIGN BUDGET DEFINE BUSINESS UNIT KPIs CONTROL SYSTEMS PLAN FINALIZE DESIGN BINDER
TIMES DOCUMENTS / CHARTERS AS REQUIRED CUSTOMER / SUPPLIER AGREEMENTS
SCRAP & REWORK DATA CREATE PRELIMINARY SSD MODEL
UPDATE DESIGN BINDER COMPLETE BUDGET & CBA COMMISSIONING PLAN & EXECUTION
COMMUNICATION FLOW I/O ANALYSIS UPDATE DESIGN BINDER PREPARE P.O.s FOR LONG LEAD TIME
EQUIPMENT SIGN-OFF SHEETS COMPLETED
STAFF INTERVIEWS
COMPLETE BUSINESS UNIT DESIGN BUSINESS UNIT PERFORMANCE AUDITS
LEVEL OF AUTOMATION UPDATE DESIGN BINDER
DATA SPREADSHEET MODELS *** PROJECT SIGN-OFF ***
UPDATE DESIGN BINDER
SUSTAINMENT PLAN EXECUTION
ACCOMPLISHMENT SUSTAINMENT
EARLY WARNING SYSTEMS
TQC & VERIFY EEFORTS
QMS LEVEL AUDITS
SIGN-OFF: Signatures Required
EMPLOYEE LAYOUT SIGN-OFF
SIGN-OFF: SIGN-OFF: Signatures Required SIGN-OFF: SIGN-OFF: SIGN-OFF: TEAM LAYOUT SIGN-OFF SIGN-OFF: Signatures Required
TOR AUTHORS LEAN TRANSFORMATION LEADER PROJECT LEADER PROJECT LEADER PROJECT LEADER PROJECT LEADER PROJECT LEADER
LEAN TRANSFORMATION LEADER LEAN REDESIGN FACILITATOR LEAN TRANSFORMATION LEADER LEAN TRANSFORMATION LEADER LEAN TRANSFORMATION LEADER LEAN TRANSFORMATION LEADER LEAN TRANSFORMATION LEADER
PROJECT LEADER PROJECT LEADER PROJECT SPONSOR PROJECT SPONSOR PROJECT SPONSOR PROJECT SPONSOR PROJECT SPONSOR
PROJECT SPONSOR MARKETING, SALES & SERVICE STEERING COMMITTEE STEERING COMMITTEE STEERING COMMITTEE STEERING COMMITTEE STEERING COMMITTEE
CHANGE COUNCIL STEERING COMMITTEE CHANGE COUNCIL CHANGE COUNCIL CHANGE COUNCIL CHANGE COUNCIL CHANGE COUNCIL
2 - 3 Weeks 12 - 24 Weeks
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CHANGE COUNCIL UPDATE
2 - 6 Weeks 2 - 3 Weeks 4 - 6 Weeks3 Weeks 2 - 3 Weeks
INVITE TO SIMULATION
EXPENDITURE AND IMPLEMENTATION
BOUNDARYDIAGRAM
RESULTS OF CURRENT STATE ANALYSIS
DEMONSTRATION OF LEARNED SKILLS
DIAGNOSTIC
CONCEPT DESIGN DETAILED DESIGN
Loewen Lean is Created
Standard Aero Proprietary & Confidential
Lessons Learned:
Top management support is essential!
It’s difficult to get people on side without education.
Traditional business structures are ill-equipped to manage Change - you need a separate ‘Change Management’ structure.
You can never communicate enough.
Full-time teams of your best people are highly preferred (“part time is no time”).
A thorough design alone does not guarantee success.
Implementation requires significant resources.
Sustainment: The post-implementation audits are as important as the redesign itself.
Housekeeping is the bellwether of a team’s health.
Success is directly proportional to the number of grassroots employees involved.
Celebrate your successes!
Implementing Lean Principles & tools will improve the
processes within an organization, but:
• We must ensure our efforts will benefit the customer and our core
business, present & future.
• Implementation must be based on a holistic strategic plan (or HLD)
• The impact of less visible processes, office for example, must be
incorporated.
• We must ensure not to sub-optimize one area at the expense of the
whole.
• Sustaining real continuous improvement is most successful when
incorporated as a continuing strategic perspective.
We must remember that we are using tools to improve a
business entity, as opposed to using tools just for the sake of
using them.
We must drive our lean efforts from the ‘big’ picture.
In Conclusion:
Questions / comments …
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