the impact and benefits of continuous...

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


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


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



February Monthly Metrics

(Purchasing) Powerpoint






(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



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



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


& 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)





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


& 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


& 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)





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


& 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


& 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

nd

dri

ll

Ja

mb

na

ilin

g

Fra

me

as

se

mb

ly(b

ala

nc

e, lo

ck

sh

oe

,fu

zzy

)

Sa

sh

bu

ild

Gro

mm

et

dri

llin

g

Fra

me

me

tal a

pp

SU

pre

p a

nd

gla

zin

g

Sc

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.

59

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

CU

RR

EN

T S

TA

TE

AN

AL

YS

IS

PR

OC

ES

S R

ED

ES

IGN

AN

D N

AT

UR

AL

GR

OU

PIN

G

PR

OJ

EC

T P

RE

PA

RA

TIO

N

BE

NC

HM

AR

KIN

G A

ND

CU

ST

OM

ER

AN

AL

YS

IS

ST

EA

DY

ST

AT

E D

ES

IGN

DY

NA

MIC

DE

SIG

N S

TA

TE

ENGINEERING ANALYSIS SYNTHESIS CONSOLIDATION

IMP

LE

ME

NT

AT

ION

, CO

MM

ISS

ION

ING

& S

US

TA

INM

EN

T

IMPLEMENTATION

LOEWEN LEAN TRANSFORMATION PROCESS

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 …

62

the impact and benefits of continuous...

Documents