inside lf fall09 final

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in this issue: Feature Articles 1 Teams Drive Lean Enterprise 2 Tech Center Opening in Research Park 3 Associates Embark on Lean Master Journey 3 Simplifying Business for Profitability 4 Wuxi Wafer Fabrication Goes Live 4 Global Engineering for ASBU Growth 5 Lean Office Helps LFKK Save Time Associate Relations 5 Lean Benchmarking at Steelcase 6 Pitch Boards Update Lean Progress 6 Matamoros Supports Silicon Transfers 7 One Associate’s Contribution to Lean 7 Dongguan Streamlines Varistor Production 7 Teams Streamline Order-to-Cash 8 Lean Benchmarking at Littelfuse Customer Relations 8 Custom MOV Leads to New Business 9 Fusebox Opens Door to OTB Business 9 New POWR-GARD Services Website Littelfuse in the News 10 Philippines Honored for Lean Efforts 10 Industry Awards Recognize Littelfuse Technology and Product Updates 11 POWR-GARD Capitalizes on Solar 11 POWR-GARD Protection Relay Products Programs and Process Improvements 12 Electrical Safety Training Expands TEAMS DRIVE LITTELFUSE’S LEAN ENTERPRISE INITIATIVE Since the start of the year, Littelfuse has made great strides in driving its Lean Enterprise — a culture in which engaged, empowered associates are relentlessly focused on adding value to customers while reducing waste throughout the organization. “Lean Enterprise is 80% about people and 20% about tools and techniques,” said Chairman, President and CEO Gordon Hunter in his quarterly business address to associates. “While we all need to learn how to use and deploy Lean tools and techniques such as Value Stream Maps and Kaizen, to truly succeed, we have to focus on our people and our culture.” So critical is Lean that it is one of the company’s three strategic objectives. Leading the effort is Ryan Stafford, General Counsel & Vice President, Human Resources, who has been appointed Executive Sponsor of Littelfuse’s Lean Enterprise. Working for Ryan is Lean Champion and former ESBU Operations Director Dennis Craig, who will implement Lean initiatives company-wide. “Lean will make Littelfuse a faster, more respon- sive and customer-focused organization,” said Ryan. “While it doesn’t happen overnight, we’ve already made good progress.” For example: n Three associates — Mike Yorke, Peter Kim and Tom Novak — have completed Lean Office training in their journey to become Lean Masters (see story, page 3) n To benchmark and learn from other organizations, Littelfuse team members recently visited Pella Corporation, a company known for extremely high customer satisfaction, and Steelcase, a recognized leader in Lean Enterprise (see story, page 5) continued on page 2 “Lean will make Littelfuse a faster, more responsive and customer-focused organization. While it doesn’t happen overnight, we’ve already made good progress.” — Ryan Stafford, Executive Sponsor of Littelfuse’s Lean Enterprise inside littelfuse A BRAND BUILT ON EXPERTISE IT ALL STARTS WITH YOU FALL | 2009

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Page 1: Inside LF Fall09 Final

in this issue:

Feature Articles

1 Teams Drive Lean Enterprise2 Tech Center Opening in Research Park3 Associates Embark on Lean Master Journey3 Simplifying Business for Profitability4 Wuxi Wafer Fabrication Goes Live4 Global Engineering for ASBU Growth5 Lean Office Helps LFKK Save Time

Associate Relations5 Lean Benchmarking at Steelcase6 Pitch Boards Update Lean Progress6 Matamoros Supports Silicon Transfers7 One Associate’s Contribution to Lean7 Dongguan Streamlines Varistor Production 7 Teams Streamline Order-to-Cash8 Lean Benchmarking at Littelfuse

Customer Relations8 Custom MOV Leads to New Business9 Fusebox Opens Door to OTB Business9 New POWR-GARD Services Website

Littelfuse in the News10 Philippines Honored for Lean Efforts10 Industry Awards Recognize Littelfuse

Technology and Product Updates11 POWR-GARD Capitalizes on Solar11 POWR-GARD Protection Relay Products

Programs and Process Improvements12 Electrical Safety Training Expands

TEAMS DRIVE LITTELFUSE’S LEAN ENTERPRISE INITIATIVE

Since the start of the year, Littelfuse has

made great strides in driving its Lean

Enterprise — a culture in which engaged,

empowered associates are relentlessly focused

on adding value to customers while reducing

waste throughout the organization.

“Lean Enterprise is 80% about people and 20% about tools and techniques,” said Chairman, President and CEO Gordon Hunter in his quarterly business address to associates. “While we all need to learn how to use and deploy Lean tools and techniques such as Value Stream Maps and Kaizen, to truly succeed, we have to focus on our people and our culture.”

So critical is Lean that it is one of the company’s three strategic objectives. Leading the effort is Ryan Stafford, General Counsel & Vice President, Human Resources, who has been appointed Executive Sponsor of Littelfuse’s Lean Enterprise. Working for Ryan is Lean Champion and former ESBU Operations Director Dennis Craig, who will implement Lean initiatives company-wide.

“Lean will make Littelfuse a faster, more respon-sive and customer-focused organization,” said Ryan. “While it doesn’t happen overnight, we’ve already made good progress.” For example:

n Three associates — Mike Yorke, Peter Kim and Tom Novak — have completed Lean Office training in their journey to become Lean Masters (see story, page 3)

n To benchmark and learn from other organizations, Littelfuse team members recently visited Pella Corporation, a company known for extremely high customer satisfaction, and Steelcase, a recognized leader in Lean Enterprise (see story, page 5)

continued on page 2

“Lean will make Littelfuse a faster, more responsive and customer-focused organization. While it doesn’t happen overnight, we’ve already made good progress.”

— Ryan Stafford, Executive Sponsor of Littelfuse’s Lean Enterprise

inside littelfuseA BRAND BUILT ON EXPERTISE IT ALL STARTS WITH YOU

FALL | 2009

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Ranked by U.S. News & World Report as one of the U.S.’s top five engineering schools, UIUC created the park 10 years ago to attract high-tech companies and encourage collaboration with private industry. Now underway at UIUC’s park is a 13,500 square foot building that will serve as the Littelfuse Technical Center. Planned for completion next March, it will provide Littelfuse with access to university labs, engineering professors and students — a rich pool of talent that has contributed to resident companies’ research and development programs.

“We plan to leverage these resources as we expand our new product development efforts,” said Dan Stanek, Director of Marketing and POWR-GARD Business Development.

What’s more, the UIUC Park is home to more than 70 global technology leaders — companies such as Yahoo, Caterpillar, John Deere, Qualcomm and Wolfram Research – that may result in additional new business opportunities.

As part of the transition, POWR-GARD’s engineering team will move from Arcola to the new UIUC facility, and Des Plaines engineering associates will relocate to corporate headquarters. The Des Plaines facility will then close, saving significant costs and paving the way for the property to be sold.

The High Power Lab at the Des Plaines facility will be closed at the end of the year for maintenance before it is moved to the new location in Champaign. The new building is expected to be completed by March of 2010 but the HPL team will be utilizing the Allen-Bradley High Power Lab in Milwaukee, Wisconsin until the new test Lab becomes operational. n

KEY TO ELEMENTS SUPPORTING LITTELFUSE STRATEGIC OBJECTIVES

Stories reflecting the key elements that support Littelfuse’s strategic objectives are identified by the icons shown below:

Design-wins – Develop products for customers’ specific applications

Channel excellence – Train and support distributors and sales teams so they can

better serve customers

Asia Strength – Build the Asia organization to meet customers’ needs

in the region

LEAN Enterprise – Develop a company- wide culture focused on improving

processes and reducing waste, increasing efficiency and customer responsiveness.

Littelfuse’s new High Power Lab will

be completed in March 2010.

TEAMS DRIVE LITTELFUSE’S LEAN ENTERPRISE INITIATIVE

LITTELFUSE TECHNICAL CENTER TO OPEN IN HIGH TECH RESEARCH PARK

In its quest to return to sustainable profitability and attain future growth, Littelfuse has embarked on an exciting yet

challenging new chapter in its history. Amid difficult decisions to consolidate business operations have come new

opportunities, such as relocating the company’s High Power Lab (HPL) from Des Plaines to a state-of-the-art Research

Park at the University of Illinois at Urbana-Champaign (UIUC).

continued from page 1

n Consolidating customer service and order entry is saving thousands of hours of time and allowing associates to work on other projects (see LFKK story, page 5)

n Lean Office Value Stream Mapping and Kaizen Events are helping associates such as Credit Analyst Deneen Johnston learn how to drive waste out of their work areas (see story, page 7)

n Now underway are Kaizen events tightly focused on four key areas to improve Littelfuse’s order-to-cash process (see story, page 7)

Read this issue to find out more about these and other initiatives. “If you take the order-to-cash analysis and multiply the savings in time

by the number of opportunities throughout Littelfuse, you can see that Lean is a very powerful tool that can help drive our future success,” said Gordon.

Ryan agreed, adding, “While many companies try to implement Lean, very few succeed. It takes persistence, attitude and endurance. If we are successful, it will not only improve our financial performance but ensure better, more challenging opportunities for our entire workforce.”n

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Simplification, profitability and Lean Enterprise (see story, page 1) are so critical that they have been earmarked as the company’s three strategic objectives. Dave Heinzmann, Vice President – Global Operations, has been tapped to lead the simplification initiative, Paul Dickinson, Vice President and General Manager, Silicon Products Business Unit, leads the profitability initiative, and Ryan Stafford, General Counsel & Vice President, Human Resources, leads the Lean Enterprise initiative.

All three objectives involve looking at business from a fresh perspective, focusing on the customers, products and regions that are most profitable, and building a growth strategy best for the company, its customers and shareholders over the long-term.

”Our goal is to optimize our business operations footprint by minimizing fixed costs while retaining the flexibility to support future growth,” said Global Operations Director Paul Giagnorio, who is involved in the simplification initiative. “That means looking at our company from a global perspective, evaluating each facility’s capabilities, and leveraging the stron-gest sites to generate the highest returns.”

Actions now being taken to simplify the company’s operations include consolidating manufacturing and other activities at key sites, such as moving opera-tions from Yangmei, Taiwan to the new silicon plant in Wuxi, China and Dünsen, Germany operations to

SIMPLIFYING BUSINESS TO ACHIEVE SUSTAINABLE PROFITABILITY

Littelfuse has chartered a new corporate mission: to return to sustainable profitability in the

near-term and outperform competitors as the global economy recovers. Achieving this mission

despite lower revenue and slow growth over the next 18-24 months requires that the company

simplify its business and organization.

THREE ASSOCIATES EMBARK ON JOURNEY TO BECOME LEAN MASTERS

Late last year, three associates from

three different functional areas —

Human Resources Director Mike Yorke,

POWR-GARD Arcola Engineering Manager

Tom Novak and Global Purchasing Director

Peter Kim — embarked on a two-year journey

to become Lean Masters. In the process,

they have become adept at Lean Office tools

and techniques, and are now leading Value

Stream Mapping and Kaizen events that will

ultimately benefit the entire company.

The process began last year, when the Executive Team determined which associates would be the first to undergo the intense training. “Mike, Peter and Tom were selected because of their contributions to the company and competency in leadership, communications, perseverance and other core skills,” said Ryan Stafford, Executive Sponsor of Littelfuse’s Lean Enterprise Initiative.

Peter, for example, has spent the last six years building purchasing into a network of supplier partners supporting facilities and customers worldwide. Since joining Littelfuse 15 years ago as a summer intern, Tom has taken on additional POWR-GARD responsibilities including new product development and technical support.

Mike has been focused on building the company’s talent base, recruiting key associates for the company’s North American facilities. “Little did I know when I was selected that the months ahead would bring an entirely new set of challenges,” he said.

With their Lean Office training complete, Mike, Peter and Tom have begun co-facilitating actual Value Stream Mapping (VSM) events, successfully meeting targets set for removing waste and improving cycle times. ”They’ve been very aggressive in advancing their Lean knowl-edge while driving VSM and Kaizen events ahead of expectations and schedule,” said Ryan. Later this year, they will begin training other associates, creating an army of “Lean Leaders” capable of driving Lean projects throughout the company. n

Littelfuse’s North American site in Piedras Negras, Mexico; creating a global customer service center in the Philippines; and moving quality/environmental support to factories. Some sites are being eliminated, such as Utrecht and Des Plaines, while Hong Kong and Singapore are moving to more cost-effective offices.

“Actions taken to appropriately size our business have put us in a much healthier situation,” said Paul Dickinson. Also improving the situation have been increased ASBU, ESBU and Silicon sales, new busi-

ness in Asia, and greater sales this year due to POWR-GARD’s acquisition of Startco. These factors have resulted in the company raising its second and third quarter sales estimates above expectations.

“Despite this being a challenging time, everyone has handled themselves very professionally,” said Paul Giagnorio. Paul Dickinson agreed, adding, “As always, we want to thank associates for their hard work and dedication, which will enable us to achieve our goal of sustainable profitability.” n

“Actions taken to appropriately size our business have put us in a much healthier situation.”

— Paul Dickinson, leader of Littelfuse’s profitability initiative

INSIDE LITTELFUSE |

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GLOBAL ENGINEERING PRESENCE STIMULATES ASBU GROWTH

Having application testing, project management, concept design and other engineering activities

in proximity to customers’ design-in and decision-making locations is vital to Littelfuse’s future,

according to Juergen Scheele, Director of ASBU Product and Technology Development.

“We continue to keep customer-engaging engineering functions strategically located at our

regional competence centers in North America, Germany and the Philippines, while keeping final

process engineering, product design and validation capabilities at manufacturing plants,” he said.

“It’s more efficient and helps us ensure that products meet customers’ specific needs.”

Juergen’s comments come while Littelfuse is in the midst of restructuring plans to create a leaner, flatter organization poised for growth. “Having a global presence will enable us to respond locally and drive projects globally,” he added, noting a fusebox recently engineered for Porsche involved teams from the US, Germany and the Philippines (see story, page 9.)

Other recent examples of global projects include a fuse for a European hybrid electric vehicle in which sales, application engineering and prototyping were done in Germany, project management and testing in the U.S. and component assembly in Mexico. Another — a sealed compact fuse for a U.S.-based off-road, truck and bus customer — called for sales and application engineering to be done in the U.S. while project management, design and testing were done in Germany.

“The entire process, from product development to sales, benefits when engineering and design teams are inside the plant, where they can get input and feedback on manufacturing processes,” said Juergen.

“Customers benefit by having application engineers, application labs, project management and concept design who are in the same time zone, speak the same language and share the same culture,” he added. n

Commemorative wafers from the first

production run at Wuxi’s new facility

have been encased for display at facilities

worldwide.

WAFER FABRICATION GOES LIVE AT WUXI

Littelfuse has reached a major

milestone in its effort to

simplify business and return to sustainable

profitability (see article, page 3).

This summer, the first silicon wafers meeting quality and reliability standards rolled off the production line at Wuxi, China, capping an 18-month effort to consolidate wafer fabrication, back-end assembly and testing at a single Littelfuse site. So significant was the event that commemorative wafers from the first run have been encased for display.

It is but the latest in a series of recent milestones, according to Silicon Products Business Unit Vice President and General Manager Paul Dickinson. “Over the past quarter, back-end assembly lines have been successfully moved to Wuxi from Matamoros (see article, page 6) and the Wuxi technical center is now fully functional,” he said. “These accomplishments are due to the dedication, hard work and outstanding jobs done by our Wuxi, Matamoros and Irving teams.”

Teams are now focused on ramping up production in Wuxi and ramping down production in Irving and Matamoros by the end of Q1 2010. When the transition is complete, Wuxi will provide complete product evaluation and applica-tions testing services to customers in Asia, and be capable of producing over 100,000 wafers and 50 million semiconductor products per month. n

“Having application testing, project management, concept design and other engineering activities in proximity to customers’ design-in and decision-making locations is vital to Littelfuse’s future”

— Juergen Scheele , Director, ASBU Product and Technology Development

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LEAN OFFICE SIMULATION HELPS LFKK SAVE OVER 200 HOURS OF TIME

Lean Office simulations have been underway worldwide,

helping associates learn how to apply Lean concepts

to non-production areas. Lean Office simulation enables participants

to experience an actual Kaizen event in which ideas for making

improvements are identified, decisions made, small groups established

and implementation completed within a strict time period.

One of the first sites to undergo training was the LFKK (Japan) facility, where associates faced a major challenge — streamlining Inside Sales and Customer Service so that both functions could be handled in less time without impacting service or responsiveness. “That meant we had to find 218 extra hours of time each month,” said Global Inside Sales Director Ron Hess, who led a team of associates including LFKK General Manager Yoshiki Fujino; Office Manager Sumi Owada; Inside Sales/Customer Service Associates Kiyoko Horiuchi, Megumi Kujirai, Aki Nishino, Reiko Sato, Fumiko Akimoto, Istuko Otake, Joe Ng and Liang Yan; and Singapore Office Manager Karen Ong.

Working together, the team determined that two activities — Order Processing and Pricing, and Sample Request Processing — were the leading “pareto” items accounting for 80% of associates’ time. After using Value Stream Mapping to define the current state of both processes, they applied Lean concepts to redesign them and created an implementation plan for executing these actions. Value Stream Mapping also helped the team identify five major Kaizen events that, when completed, will save over 250 hours of wasted time per month, reduce sample lead time by over 75%, optimize the sample warehouse and improve cycle times by more than 80%.

With implementation underway, team members are pleased with their efforts. “Until we looked at the entire Value Stream, I never realized how wasteful the process has been and how dissatisfied the customers were. While changing processes is challenging, it is exciting at the same time,” said Aki.

“What I found most amazing was that none of the original ideas suggested at our initial meeting was used to fix the root cause. Problem solving is a process and the most powerful way to find solutions is by applying LF6 and Lean Tools,” said Sumi.

“The entire team was highly engaged and interactive,” added Lean Champion Dennis Craig. “Management not only provided resources but participated in training and all VSM/Kaizen events.” n

BENCHMARKING PROVIDES FIRST-HAND EXPERIENCE IN LEAN TRANSFORMATION

The Littelfuse Management Team is receiving first-hand

experience in Lean concepts by learning from companies that

have undergone the same transformation. “These ‘benchmarking

experiences’ are invaluable opportunities to learn from the best

practices of other Lean Enterprises,” said Ryan Stafford, Executive

Sponsor of Littelfuse’s Lean Enterprise Initiative.

An invaluable benchmarking experience occurred this past spring, when the Littelfuse Management Team met with Lean Team members at Steelcase, a leading supplier of interior architecture, furniture and technology, with over 13,000 employees and manufacturing locations in 30 countries worldwide. “Steelcase’s team faced many of the same challenges we’re facing,” said Ryan. Among these challenges are driving Lean concepts while simultaneously training associates and implementing Lean at multiple locations, establishing a team of Value Stream managers, and communicating Lean updates internally and externally.

“These experiences are helping us think in a new way, to look beyond numbers and quantities and focus on processes,” added Ryan. “By applying benchmarking to our entire organization, we are also becoming more aware of customer needs and expectations.”

According to Ryan, benchmarking is a critical first step in Lean Enterprise transformations. “It starts with a critical review of existing business processes so we can better understand how work is actually being performed rather than how we think it’s being performed. Then we can determine which processes need to changed and involve the entire company in continuous improvement events.”

Team members also spent a full day at Pella Corporation, an innovative manufacturer of windows and doors consistently recognized for its high levels of service and customer satisfaction. n

Signs display ideas, action items and value

stream maps created by LFKK and Singapore

Inside Sales/Customer Service associates during their

recent Lean Office simulation.

The Littelfuse

Management

Team met with

Lean Team members at

Steelcase this spring.

INSIDE LITTELFUSE |

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PITCH BOARDS UPDATE LEAN OFFICE PROGRESS

To reinforce Lean Office training and Live Office simulations for customer service and inside sales associates,

Global Customer Service Director Ron Hess and Customer Service Manager Jodie Kilinski have begun implementing

“pitch boards” — a metric and measurement device used to display real-time data on critical customer measures.

“Previously, front office teams relied on metrics, but the data often lagged a week, even a month or a quarter behind,” said Ron. “Now they get immediate feedback. Teams in each SBU are using the pitch boards in daily morning meetings to review what’s happening and why, go over root causes and come up with solutions.”

According to Lean Champion Dennis Craig, the boards are especially valuable to customer service and inside sales. “They have the most contact with customers, so it’s important for them to see how they’re making an impact,” he said. “As a result, they’re more energized, morale has improved, they’ve taken ownership working on root cause analysis of the issues in their area and progress to improve the customer based metrics is being made at a rate faster than ever before.”

Ron and Jodie are now focused on rolling out identical pitch boards at customer service sites worldwide. n

Teams in each SBU are using the pitch boards in daily morning meetings

to review what’s happening and why, go over root causes and come up

with solutions.

Process improvements made by Matamoros

Engineering Section Leader Luis Raul Ramirez

are being transferred to the Wuxi facility along with

the products for which they were developed.

MATAMOROS CONTINUOUS IMPROVEMENT SUPPORT SILICON TRANSFERS

The Matamoros team has a robust and long-standing continuous improvement culture,

but until recently it was always focused on improving the manufacturing processes in

the Matamoros facility. Now they are transferring process improvements to the Wuxi, China

facility along with the products for which they were developed.

“It all started when we had a low-yield situation in the TO-218,” explained Engineering Section Leader Luis Raúl Ramirez. “An initial investigation indicated that the epoxy’s physical properties may have affected the device’s electrical performance,” he added, noting that similar problems were being experienced at a Delphi facility. The team tried a new “green” epoxy, but found it to be impractical in cost, and decided to instead cure the current epoxy prior to molding.

Believing that there had to be a more effective solution, the team began searching for a single

supplier who could solve the problem and meet all of their epoxy needs. They soon found a solution — a special epoxy formulation that works well, especially with conventional molds used for most of Matamoros’ products.

These efforts resulted in qualifying green epoxies for manufacturing silicon products at Wuxi as well as at outsourcing partners’ facilities in China. “Qualifying the green compounds as part of the transfer to Asia has given us an edge over the competition,” said Global Silicon Engineering Manager Rick Bono. “We are expanding to other lines as transfer qualifications continue.” n

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VARISTOR PRODUCTION STREAMLINED AT DONGGUAN FACILITY

Littelfuse’s acquisitions of Harris Corporation’s Suppression Products Group In 1999

and Song Long Electronics in 2006 not only resulted in the addition of two established

varistor product lines but two manufacturing facilities as well — Harris’ plant in Dundalk, Ireland and

Song Long’s plant in Dongguan, China. Varistor production lines from both plants have recently been

consolidated into a single, more modern, cost-effective facility located in the Humen business district

of Dongguan.

In addition to streamlining varistor production, the new facility features a lab ideal for quality audits, research and product development. The lab has already proved beneficial in the development of new varistors offering significant new business potential.

With quality, cost reduction and mass production well underway, the team is now focused on imple- menting Lean concepts. They have already been successful, reducing lead times on standard varistors to three weeks. Additional initiatives are also underway, all supporting Dongguan’s commitment to growing Littelfuse’s varistor business. n

LITTELFUSE’S LEAN TRANSFORMATION: THE DIFFERENCE ONE ASSOCIATE CAN MAKE

A prime example of how each

associate plays a role in Littelfuse

becoming a Lean Enterprise occurred this

past spring, when Des Plaines Credit Analyst

Deneen Johnston attended a Lean Value

Stream Mapping (VSM) event focused on

improving the entire order-to-cash process.

Among the Kaizen initiatives identified during the VSM event was the need to reduce the large backlog of customer charge backs — one of Deneen’s core responsibilities. Over the next few months, Deneen not only streamlined her work responsibilities but as part of a temporary work cell created by the Kaizen event team of Tanya Burl, Dawn Manhart and Ruthie Bybee, she signifi-cantly reduced the backlog and made sure that incoming charge backs were processed according to her new standard work guidelines.

“The results were outstanding,” said Human Resources Director and Lean Team Member Mike Yorke. “Not only was the backlog of customer charge backs dramatically reduced, but Deneen created a desk map, standardized work processes, overhauled her filing system and posted results each day on a board for the entire office to see.” She also cross-trained other associates and gave presentations on the new processes to depart-ment managers, the Executive Team and the Board of Directors.

“This is a great example of how each associate can make a huge difference,” added Mike. “The entire Lean Team thanks Deneen for her cooperation, work ethic and willingness to change.” n

TEAMS STREAMLINE ORDER-TO-CASH PROCESS

One of the improvement initiatives successfully tackled during Littelfuse’s Lean Office training

cycle was ESBU’s North American order-to-cash process — the amount of time and number

of administrative steps it takes from order entry to customer payment.

The initiative began when a cross-functional group of associates led by Lean Team Members Peter Kim, Tom Novak and Michael Yorke used Value Stream Mapping to determine that the order-to-cash process took up to five weeks. Compared to industry bench-marks of less than a week, Littelfuse’s process was significantly slower and overly complex.

ESBU’s customer service/inside sales team quickly put into motion actions to streamline the process, eliminate wasted steps, speed up order processing

and resolve credits and debits in a fraction of the time. Their efforts worked; customers are not only pleased with the improved responsiveness, but the reduction in time will lead to faster customer pay-ments for a steadier flow of cash.

Team member Ruthie Bybee commented, “I would have never believed this could happen…I am a believer in Lean now!” n

Dongguan’s

new facility is

streamlining varistor

production.

INSIDE LITTELFUSE |

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CUSTOM MOV LEADS TO MULTIPLE NEW BUSINESS OPPORTUNITIES

By modifying existing products to fit customer needs, Littelfuse

continues to win new business and open the door to untapped

markets. A prime example occurred last year, when Nelson Electric

Supply, a major wholesaler representing the POWR-GARD line, needed

help providing a circuit protection solution for a major manufacturer of

LED streetlights.

After reviewing the application, the POWR-GARD Sales Engineering Team concluded that the best solution was not a POWR-GARD fuse but an ESBU MOV-based assembly meeting the application’s overvoltage protection needs. Product Marketing Specialist Justin Lee and the POWR-GARD team worked with an outside contract manufacturer, creating a pre-wired, pre-heat-shrunk MOV assembly that can be assembled into the streetlight as a single unit.

“It was exactly what they were looking for,” said Dan Gilman, Global Sales Engineering Director, noting that the custom MOV unit saved the manufacturer considerable time outsourcing the assembly themselves. The solution has resulted in a major order with additional sales anticipated.

It has also opened the door to a new application in the lucrative LED streetlight market. Not only do LEDs burn brighter and last longer than traditional lights, but they use considerably less electricity, prompting conver-sions in dozens of cities throughout the world. Dan and OEM Sales Engineer Akhilesh Shah are now pursuing new business opportunities for supplemental overvoltage protection with other LED streetlight manufacturers. n

INDUSTRY LEADERS ATTEND LITTELFUSE LEAN BENCHMARKING EVENT

Just as Steelcase shared its best practices in Lean concepts (see

article, page 5), Littelfuse is doing the same, hosting the Chicago

Council of Operations Executives Special Interest Group (COE SIG) in June.

Comprised of senior level officers, the COE SIG provides a forum where

members can share strategic ideas and discuss challenges with their

peers, helping them improve inefficiencies in their organization.

Over 15 executives from such global leaders as McDonald’s, Komori America, Crate and Barrel, Richardson Electronics and Fellowes gathered at Littelfuse’s global headquarters to hear Lean Champion Dennis Craig discuss the company’s Lean Enterprise initiative. Representing Littelfuse’s Management Team was Phil Franklin, CFO and Vice President, Operations Support.

“The executive roundtable was not only very successful, but a great opportunity for Dennis to demonstrate his leadership skills in peer-to-peer benchmarking and sharing of Lean Enterprise best practices,” said Global Purchasing Director Peter Kim, one of three associates who have embarked on a journey to become Lean Masters (see article, page 7). n

Over 15 executives from such global leaders as McDonald’s, Komori America, Crate and Barrel, Richardson Electronics and Fellowes gathered at Littelfuse’s global headquarters to hear Lean Champion Dennis Craig discuss the company’s Lean Enterprise initiative.

Littelfuse recently shared its Lean initiatives with executives from

industry-leading companies.

A custom MOV unit has opened the door to potential new business for

POWR-GARD in the lucrative LED streetlight market.

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CUSTOMER-FOCUSED WEBSITE DRIVES BUSINESS FOR POWR-GARD SERVICES

At the totally redesigned Littelfuse.com/Electrical-Services website, customers and

prospects can quickly and easily learn how POWR-GARD Services can help them increase

electrical safety for their employees and equipment. In the process, POWR-GARD is gaining new

business leads in one of North America’s fastest-growing niche markets.

Customer input was a prime factor in the website’s new look and functionality. More streamlined and easier to navigate than the previous site, it features easy-to-identify sections with quick links to data on POWR-GARD’s Arc-Flash services, engineering services, electrical safety training, ground fault protection relays and electrical safety products right from the home page, shortening visitors’ search time.

With a single click, prospects can request free quotes on Arc-Flash, electrical engineering and electrical safety training/consultation services that could eventually turn into new business opportuni-ties. Also creating new business leads is “Ask the Safety Experts,” with POWR-GARD Services providing answers to customers’ electrical safety or circuit protection concerns. What’s more, the site is linked to Littelfuse.com, cross-selling the company’s entire portfolio of circuit protection solutions.

“We are already receiving leads from the new site,” said POWR-GARD Services Product Manager Tom Elsasser. “We anticipate even more will result as word gets out.” n

In August, Littelfuse was selected by

Draexlmaier, a Germany-based, global

supplier of automotive electrical systems, to

develop a high current fuse-module for the

highly anticipated Porsche Panamera, a unique,

four-door Gran Turismo that made its world debut

at Auto Shanghai 2009 in China this past April.

“This was a major new business win for our team,” said Edward Brouwer, Off-Road, Truck and Bus (OTB) Sales Manager. The project involved engineering a custom fuse-module for high current fuses. “The solution we engineered and our outstanding short time to market on the project were the main reasons why we won the business,” he said.

Sales, application engineering and validation were handled in Germany, where teams could be in close proximity to their counterparts at Draexlmaier and Porsche. Design took place in North America and the Philippines, with project management in the Philippines and production in Asia. As a result of the global effort, the new fuse module is now equipped on Porsche Panamera models that went on the market in September.

One of the new fuse module’s key features is its IP67 rating, resisting dust and immersion in water up to one meter. “That opens the door to additional new business opportunities with Draexlmaier/Porsche as well as customers in the agricultural equipment market, several of whom have already expressed interest,” added Edward. n

The new fuse module

developed by Littelfuse is

equipped on Porsche Panamera models.

GLOBALLY ENGINEERED FUSEBOX OPENS DOOR TO NEW OTB BUSINESS

INSIDE LITTELFUSE |

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Page 10: Inside LF Fall09 Final

LITTELFUSE IN THE NEWS

Just as important as the mentions Littelfuse receives in the media are awards recognizing the

company and associates for marketing and sales excellence, innovative product development and

technical expertise – ultimately reinforcing the company’s brand and contributing to future new

business opportunities. Four of the most recent awards are featured below.

AWARDS RECOGNIzE LITTELFUSE FOR SUPERIOR BUSINESS PRACTICES

Littelfuse has recently been recognized on three

different fronts for its excellence in business

practices and partnerships.

In April, Forbes.com included Littelfuse in its listing of “The Most Trustworthy Companies” in America. The third annual listing looked beyond raw data on the income statements and balance sheets of over 8,000 public companies to assess the true quality of a corporation’s accounting and management practices. Companies included on the listing are recognized for their transparent and conservative accounting practices and solid corporate governance and management.

Also in April, Littelfuse was awarded with Arrow Electronics’ 2008 PEMCO Supplier Excellence Award. The award recognizes best-in-class performance for Passive, Electromechanical and Connector (PEMCO) suppliers. Littelfuse received the award for its systems automation, marketing and sales achievements.

In June, Littelfuse received a 2008 Total Cost of Ownership (TCOO) Supplier Award in the category of “Most Improved TCOO Score” from Celestica, a

global leader in end-to-end product lifecycle solutions. The award recognizes suppliers supporting Celestica’s overall supply chain goal — to reduce the total cost of ownership for its customers and provide them with the flexibility they need to over-come any challenge. n

PHILIPPINES TEAM WINS GLOBAL HONORS FOR LEAN EFFORTS

Square NANO Project Team members

from the Philippines facility have won

global recognition for their successful efforts to

improve manufacturing processes by applying

Six Sigma strategies and Lean Manufacturing

techniques. This spring, they were honored as

a Silver Winner at the 2009 International Team

Excellence Award competition during the World

Conference on Quality and Improvement.

This was the first time that the team participated in the global competition, surpassing 27 other finalists. “This recognition is important, not just for the sake of winning the Silver Award, but because it points to how the team significantly increased production efficiency and, consequently, our business opportunities,” said Asia Operations Director Dan Onken.

“This team not only fixed the problem, they fixed the root cause,” said Lean Champion Dennis Craig, noting that the competition’s lead judge was overwhelmed by the enthusiasm of the Littelfuse team. “We’ve experienced a major cultural shift, set new goals and brought in tools like Six Sigma and Lean to accomplish them. As a result, we’re improving inventory turns and delivery, reducing scrap and customer defects and generating increasingly better lead times,” added Dave Heinzmann, Vice President — Global Operations. n

The Philippines Square NANO team received

an International Team Excellence Award at the

World Conference on Quality and Improvement.

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Page 11: Inside LF Fall09 Final

Now being rolled out through POWR-GARD’s North American distributor network is a

comprehensive line of protection relay products that detect hazardous electrical conditions

before they occur, preventing damage to electrical equipment while increasing safety for the workers

who use them. They are especially critical in protecting against ground faults that can lead to

catastrophic arc flash incidents.

Ground faults can occur when equipment is damaged, cable insulation is worn or excess moisture is present, creating an unintentional path for electricity to follow and a dangerous situation for workers. “By reducing the possibility of a ground fault, we can help custom-ers increase the safety of their equipment and better protect their workers,” explained Dan Stanek, Director of Marketing and Corporate Communications.

POWR-GARD’s new ground fault protection relays, for example, detect ground faults as they develop and alert personnel before a catastrophic event occurs, while their new resistance grounding systems physi-cally limit ground fault currents to safe levels. Built with advanced technology, POWR-GARD’s new motor protection relays provide additional safety features

and value-added benefits. “They not only protect workers from unsafe conditions, but result in signifi-cant cost-savings by reducing maintenance time, process downtime and motor repairs,” said Tony Locker, Product Manager, POWR-GARD Protection Relay Products.

Also available are feeder protection relays and supplemental monitoring products. All are being supported by POWR-GARD’s new “Ask the Expert” online service, with engineers responding to custom-ers’ technical questions within 24 hours.

The comprehensive line is the result of POWR-GARD’s 2008 acquisitions of K-tec Corporation, a company specializing in innovative ground fault circuit protection technology, and Startco Engineering, Ltd., a major supplier of ground fault as well as motor protection and feeder protection products. “By intro-ducing this line, we’ve made major strides in our overall strategy of providing customers with the broadest range of electrical safety products available in the industry,” added Tony. n

Not only is the PV market growing at an unprecedent-ed rate, but it is rich in new business opportunities for Littelfuse circuit protection and power management solutions, from fuses and fuseholders, to ground fault relays and TVSS devices. “Because of our broad cross-section of products, we have solutions available to protect the wires, combiner boxes, power inverters and other solar applications,” said Global Sales Engineering Director Dan Gilman, who is leading the effort to pursue PV opportunities in Europe, Asia and North America.

Helping meet these applications is POWR-GARD’s Solar Protection Fuse Series (SPF) - a new line of 1000 volt DC fuses and fuseholders specifically designed to protect PV equipment. The new line complements existing products such as KLKD fuses, MOVs and ground fault relays that have proven effective in solar applications.

Littelfuse is now building brand recognition in the PV market, publishing white papers educating engi-neers, integrators, installers and equipment manufac-turers on the types of circuit protection required for

solar applications. “The characteristics and environ-ment of PV systems may be significantly different than what most electrical designers are accustomed to,” added Dan. “We want this audience to know that we have the expertise and solutions they need.” n

LITTELFUSE CAPITALIzES ON GLOBAL SOLAR MARKET

POWR-GARD LAUNCHES PROTECTION RELAY PRODUCTS

Alternative energy sources have become more important than ever before,

accelerating the development and installation of new technologies such as Solar

Photovoltaic (PV). “It’s an exciting time to be involved in the global solar market,” said POWR-GARD

Marketing Manager Maureen Janosch. “Despite today’s economy, this market is expected to grow

by 50% each of the next four years.”

POWR-GARD recently launched a new line of

protection relay products.

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POWR-GARD EXPANDS ELECTRICAL SAFETY TRAINING PROGRAM

In just a few years, POWR-GARD Services’ Electrical Safety Trainers have helped

thousands of electricians, plant managers, engineers and maintenance workers throughout

North America learn how to identify Arc-Flash hazards and ensure safe electrical practices in

the workplace. That number is sure to increase, thanks to five additional electrical safety training

modules that will enable companies to comply with the latest industry requirements, generating

greater attention for POWR-GARD Services in the process.

New courses include a 10-hour introductory course and 30-hour intermediate course designed to help participants learn Occupational Safety and Health Administration (OSHA) guidelines for responding to workplace hazards in public buildings and facilities. Two additional intermediate level courses cover the latest workplace safety requirements issued by the National Fire Protection Association (NFPA) and Canadian Standards Association (CSA). Also new is an intermediate course covering power system grounding in industrial, commercial and institutional environments.

All sessions are presented on-site in a classroom setting, one of the most effective methods of explaining OSHA, NFPA and CSA requirements. Depending on the course, participants receive OSHA certification or continuing education credits upon successful completion.

The new modules are the latest enhancement to POWR-GARD Services’ Electrical Safety Training program. Not only has the program generated profits, but it has opened the door to additional fuse busi-ness, according to POWR-GARD Services Product Manager Tom Elsasser. “We’re already ahead of our original forecast.” n

“Not only has our training program generated profits, but it has opened the door to additional fuse business.”

— Tom Elsasser, POWR-GARD Services Product Manager

OSHA 10 Hour Training Course

Littelfuse POWR-GARD Services provides a broad selection of on-site and online Safety Training courses designed to increase safety and help your facility meet industry requirements. For complete listings of Training courses, visit www.littelfuse.com/services.

COURSE OSH101 OSHA 10 HR General Industry

Safety Training

DURATION: 10 Hours (1-2 Days)

DESCRIPTION:Most states and government agencies require contractors who perform construction or maintenance services on public buildings and facilities to employ workers who have attended an authorized 10 hour OSHA safety training class. Employees must be able to identify workplace hazards and use safe work practices and protective equipment if exposed to the hazards. Workers must have received a certified 10 hour card from OSHA. Some industrial and commercial general contractors and owners also require sub-contractors to train or employ workers who have received 10 hour OSHA safety training. Littelfuse Course OSH101 is taught by an OSHA General Industry outreach trainer authorized to issue 10 hour OSHA certification cards to those who successfully complete the 10 hour program. OSHA 29 CFR 1910 General Industry standards are reviewed and studied.

TOPICS INCLUDE: • Introduction to OSHA, Employer and employee

rights and responsibilities • OSHA inspections, Citations, and Penalties • Fall protection, walking, and working surface safety

(Subpart D) • Exit routes, Emergency Action Plans, and Fire

Protection Plans (Subparts E and L) • Introduction to Electrical safety (Subpart S) • Hazard Awareness and Communication

requirements (Subpart Z) • Personal Protective Equipment (Subpart I) • Hazardous Materials (Subpart H) • Materials Handling (Subpart N)

DELIVERABLES:• PowerPoint presentation• Workbook and classroom exercises• Handout materials

LEVEL: Introductory

ATTENDANCE: Maintenance Workers Contractor Personnel Supervisors

Safety Managers

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Littelfuse POWR-GARD Services 8755 W. Higgins Rd, Suite 500 Chicago, IL 60631 www.littelfuse.com/services

Training Course PGS405

Littelfuse POWR-GARD Services provides a broad selection of on-site and online Electrical Safety Training courses designed to increase safety and help your facility meet requirements of OSHA, NFPA and CSA standards. For a complete listing of Electrical Safety Training courses, visit www.littelfuse.com/services.

COURSE PGS405 Overview and Changes to

DESCRIPTION:This course focuses on previous and new requirements of NFPA 70E, Standard for Electrical Safety in the Workplace. An overview of the standard and its requirements will be presented with special attention to changes in the new 2009 Edition of NFPA 70E.

TOPICS INCLUDE: • Who is covered by NFPA 70E• Employee Training Requirements• Arc-Flash Hazard Calculations• NFPA 70E Table Method• Equipment Warning Label Requirements

DELIVERABLES:• PowerPoint presentation • Handout materials • Participants may receive Littelfuse CEU credit after

passing an Electrical Safety Quiz

NFPA 70E 2009 Safety Requirements

DURATION: 2-4 Hours

LEVEL: Intermediate

ATTENDANCE: Electricians

Engineers & Electrical Contractors Maintenance Personnel

Supervisors & Safety Managers Qualified Workers

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Littelfuse POWR-GARD Services 8755 W. Higgins Rd, Suite 500 Chicago, IL 60631 www.littelfuse.com/services

Training Course PGS406

Littelfuse POWR-GARD Services provides a broad selection of on-site and online Electrical Safety Training courses designed to increase safety and help your facility meet requirements of OSHA, NFPA and CSA standards. For a complete listing of Electrical Safety Training courses, visit www.littelfuse.com/services.

COURSE PGS406 Overview of CSA-Z462

DESCRIPTION:This course focuses on the requirements of Canadian Standard CSA-Z462, Standard on Workplace Electrical Safety. An overview of the standard and its requirements will be presented along with how this standard was developed to be in parallel with NFPA 70E.

TOPICS INCLUDE: • Who is covered by CSA-Z462• Basic Requirements• Arc-Flash Hazard Calculations• Z462 Table Method• Equipment Warning Label Requirements

DELIVERABLES:• PowerPoint presentation • Handout materials • Participants may receive Littelfuse CEU credit after

passing an Electrical Safety Quiz

DURATION: 2-4 Hours

LEVEL: Intermediate

ATTENDANCE: Electricians

Engineers & Electrical Contractors Maintenance Personnel

Supervisors & Safety Managers Qualified Workers

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Littelfuse POWR-GARD Services 8755 W. Higgins Rd, Suite 500 Chicago, IL 60631 www.littelfuse.com/services

POWR-GARD Services’ Electrical Safety

sessions are presented on-site in classroom

settings, enhancing the learning experience

for participants.

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