Using Prototype Lead Time For

Competitive Advantage

Agenda

• Introduction (background data)

• Facing the Challenge of Change

• Best Practice(s) Details (How To)

• Best Practice Results

• Lessons Learned

Watlow Batavia Introduction

• Division of Watlow

Electric Manufacturing

• 101Employees

• Product – Custom

Cast Aluminum

Heated parts for the

Semiconductor, Food

Equipment and

Medical market98% Products Custom

Designed & Manufactured

Facing The Challenge of Change

The Burning Platform

• 2002 – Not meeting profitability targets

• Many products on customer end of life equipment

• Growth depended on landing new prototype business to gain volume business

• Lead times of 12 weeks for complex new prototypes

• Alternative competitive solutions 4-6 weeks for prototypes

Site survival at risk

• Established first manufacturing cell in 2001. Lead time from 6 weeks to 12 working days. 50% improvement in productivity

• 2nd through 4th manufacturing cells implemented through 2005

• Improved average prototype lead time from 12 weeks in 2001 to 6 weeks in 2006

• Utilized market based pricing knowing that lean could improve profitability

• Doubled sales from 2002 to 2006

• Improved productivity by 34% from 2003 to 2006

The Lean Journey

Lean Implementation critical to business survival

Operational Lead Time

TimeA B$

Goal: Shorten Lead Time

Product

DevelopmentScheduling

Manufacturing

Process

Distribution Transportation

Accounts

Receivables

Pre-Product Scheduling Manufacturing Distribution A/R

A Lead Time Strategy An Enterprise View

Time And Delivery

• In custom heated part business, the first to get the

prototype in the Engineer’s hands usually wins the volume

business

•Customer needs:

-Greater variety of Engineered products

-Faster response time

Reduce lead time:

-Increase flexibility in terms of value

-Improve delivery performance (quicker quotes,

prototypes, and production.)

-Reduce costs

Lean Implementation critical to winning new business

BATAVIA PROTOTYPE LEAD TIME REDUCTION

PATH USING LEAN CONCEPTS AND TOOLS

Kaizen #1

2003

Kaizen #2

2005

Kaizen #3

2006

Kaizen #4

Q4 2006

Results

Actions

•Value stream mapped

development process

•Dedicated time for Eng to

design fixtures and BOM

•Identified workstation

bottleneck

•Scheduled daily design

reviews using visual cues

•Used visual scheduling

for design reviews

•Worked with cable htr.

Supplier to use std.

components to reduce

lead time

9 weeks lead-time

•Value stream mapping

•Visual scheduling

7 wks lead-time 5.5 wks lead-time Goal 4 wks lead-time

•Metrics established

•Completed standard work

•Created design cell for

flow

•Dedicated designers for

prototypes

•Developed visual

scheduling board (VVS)

•Documented mold

standards

•Reduced lead time by 3

weeks for tubular heaters

•Developed skills matrix

for Engineering

• Component

modularization

•Tooling and fixturing

modularization

•Scheduling improvement

•Mold drawing automation

•Configured standard

products

•Established sub cell for

less complex jobs

•Created visual backlog

indicator

• Separate value

stream

•Prototype

manufacturing

cell

• Create design

manuals

•In source

fixturing

Tools

•Design modularization

and standardization

•One piece flow

•Establishment of cell

•Product development

vertical value stream (VVS)

•Standard work

•6S

•Value stream

management

•Model cell

Kaizen # 1 - 2003

Accomplishments:

• Value stream mapped development process

• Dedicated time for Eng. to design fixtures and BOM

• Identified workstation bottleneck

• Scheduled daily design reviews using visual cues

• Used visual scheduling for designers

• Worked with major component supplier to use std. components to reduce lead time

Results:

25% reduction in lead time from 12 weeks to 9 weeks mainly driven by supplier lead time reduction using standard components

We just scratched the surface

Kaizen # 2 - 2005

– Accomplishments

• Implemented vertical value stream scheduling board

• Created an Engineering prototype development cell

• Balanced work flow to the typical labor hours required

• Provided standard work documents for cell management

• Flow charted the process; created spaghetti diagrams to reveal wastes

• Developed Engineering standards

– Results:

• Lead time reduced by 22%

• First pass yield improved to 42.4% - a 1531% improvement

• Productivity improved to 49 man-hrs/prototype – a 20% improvement – redeployed 1 of 5 engineers

• Number of hand-off’s reduced to 32 – a 37% improvement

• Established visual metrics tracking within the cell

• Is a Lean approach to project management

• Goal is to:– Run projects “least waste way”

– Creating outcome that delights customer

• Typical projects – Have multiple rework loops

– Have multiple queues (waiting

for responses from other team

members)

Vertical Value Steam

datename Reviews

are for

Review

Freeze

point

Review

Freeze

point

Freeze

point

Review

Freeze

point

Review

Freeze

point

Review

Freeze

point

systemsDesignMarket’g Equip’t Leader Manuf’g serviceusersretailersShare’hs supplier supplier

task

task

task

task

task

task

task

task

task

task

task

task

?

?

?

Typical Vertical Value Steam

Std work

for each

activity

Layer

reviews

With input

& output

criteria

Freeze

points

occur

after each

layer

review

Lean Project Management

– Projects suffer the same wastes as in manufacturing

– Eliminating waste can control the project timeline

Typical project wastes

– Multi tasking

– Rework / multiple iterations

– Waiting for approval from internal suppliers

– Hand offs

Vertical Value Stream

Five lean principles can be applied to project management:

value, value stream, flow, pull and perfection

Toll Gate Review

– Primary means of eliminating waste escaping

from one layer to the next

– Paying lip service to toll gate reviews for short

term gains always results in rework and waste

– The layered approach ensures the amount of

tasks in progress is low and shortens time line

Vertical Value Stream

Getting right stakeholders is critical for successful

Toll Gate review

Project Trouble Charts – Decision and/on

– Used at the end of every layer review

– Looking for “project defects”

• Where was the defect found

• Where was the defect created

• Where should the defect have been found

Vertical Value Stream

Project trouble charts can help pareto problems

to drive improvement projects

Visual Scheduling Board

Visual Scheduling board critical to identification of defects

Trouble Board

with actions

And/on

Red/Green

magnets to

indicate

status

• Evaluated typical projects and identified common freeze points on visual scheduling board

• Defined daily review of visual scheduling board with appropriate stakeholders and decision makers

• Document actions to get projects back on track and potential future kaizen opportunities

Adaptation of Vertical Value Stream

Vertical value stream adaptation critical to reducing waste

and increasing speed

• Quicker decision making due to more

frequent project reviews and right decision

makers being present

• Project defects identified earlier

• Easier for anyone to see project status

without looking at Gantt chart in computer

Benefits of VVS

Visual Scheduling board critical to identification of defects

Layout before kaizen

Hand-off’s by skill – excessive wait time; poor flow

Cellular Layout After Kaizen

Baton

pass

zone

Balanced work flow requires multi-skilled Engineers

for optimum performance.

Bar chart before kaizen

TOTAL MCT:

TAKT TIME

= (available time,sec)

(customer demand)

0

= 460

0.65 13 per month

MIN STAFFING:

= (total MCT)

(takt time)

= 3335

707.69

Average eff = sum OCT

# op's x t/t

Average eff = 94%

= 4.71

0 3335

= 707.69

0 0 0 0

Manual Cycle Time (MCT's)

667 667 667 667 667 0 0

667 667 667 667 667

0

100

200

300

400

500

600

700

800

900

1000

Design Engineer Production Engineer Manufacturing Engineer Engineer Engineer

People

Tim

e (

min

)

Non-value Added

Value Added

Takt time

STANDARD WORK BAR CHART

PROTOTYPE ADMIN CELL

Before - needed 5 Engineers to meet customer takt time

Prototype VS Bar Chart After KAIZEN

MODELS INCLUDED: All Custom 0 Date:

0 0

TOTAL MCT:

TAKT TIME

= (available time,sec)

(customer demand)

0

= 460

0.65 13 per month

MIN STAFFING:

= (total MCT)

(takt time)

= 2314

707.69

Average eff = sum OCT

# op's x t/t

Average eff = 82%

Prototype Administrative Cell Bar Chart (loading diagram)

Manual Cycle Time (MCT's)

585 622 622 485 0 0 0 0 0 0 0

4/28/2005 19:50

= 3.27

0 2314

= 707.69

585 622 622

485

0

100

200

300

400

500

600

700

800

900

1000

Prototype engineer Prototype engineer Prototype engineer Prototype engineer

People

Tim

e (

min

)

STANDARD WORK BAR CHART

PROTOTYPE ADMIN CELL

Each associate completes 1244

minutes of work - baton pass zone.

After - needed 4 Engineers to meet customer takt time

Standard work board

Metrics drive continuous improvement

BeforeCircle diagram of the current

State from receipt of product brief to

Manufacturing order packet release.

Circle diagrams show the number

Of moves that a “need” goes through

During processing – current state is 51

Moves with 101 steps

Circle diagram after improvements.

The number of moves has been

reduced to 32 – a 37% improvement.

Circle Diagrams

Circle Diagrams helps see waste

Impact/Difficulty Matrix

Impact

Difficulty

10

HI

LO

0

LO HI

10

50

Priority Item No. Action Items Difficulty

Impact on

Metrics

Time

required

to make

change

happen

(man

hours) Team

A 50 Product engineer customer approval template (and buy in from sales) 1 6 1 Mike B, Jerry, Tony

B 16.1 Standard modularization of termination (PPL, subassy's, standards of use) 5 9 24 John, Mike

B 48 Cell creation for prototype flow 3 8 8 Ted, Jerry

C 1 Web/Excel based product brief 4 5 6 Jeff

D 13 Standardization for machine stock 3 5 8 Ken

14 Standardization for machine tolerances 3 5 8

39 Manufacturing process for components made in-house 3 5 4

28 Standardization for pinning 5 8 24

27 Electrical connectors preferred parts list (Amp, etc) and application guide (temps, tools, wire gages, ampacity)5 5 12

16.1

48

113

14

39

28

27

11

1 2

3 4

Execute in 1,

2, 3, 4 order.

923,24,46

22

3,30

21,29

6,33,35

17,42,49

7

34,38

16.2

1520

Impact / Difficulty Matrix helps decision making process

Opportunities From Flow Chart

Metrics:

Lead Time (Flow Time) reduction, min.

Manual Cycle Time. min

FPY

Priority Item No. Action Items Difficulty

Impact on

Metrics

Time

required

to make

change

happen

(man

hours) Team

A 50 Product engineer customer approval template (and buy in from sales) 1 6 1 Mike B, Jerry, Tony

B 16.1 Standard modularization of termination (PPL, subassy's, standards of use) 5 9 24 John, Mike

B 48 Cell creation - 1 ME completing routers Ted, Jerry

C 1 Web/Excel based product brief 4 5 6 Jeff

D 13 Standardization for machine stock 3 5 8 Ken

14 Standardization for machine tolerances 3 5 8

39 Manufacturing process for components made in-house 3 5 4

28 Standardization for pinning 5 8 24

27 Electrical connectors preferred parts list (Amp, etc) and application guide (temps, tools, wire gages, ampacity)5 5 12

11 Modify meeting form to include outside processes/vendors 1 2 0.5

9 Second flag over coffee machine 1 1 1

22 Bushing parts list 1 1 1

23 Plate parts list 1 1 1

24 Bar stock parts list 1 1 1

46 Mold checking process guidelines 1 1 1

3 Two man meeting (Barry & Mike B.) 2 4 2

30 Standardization for lathe fixturing/ guidelines for fixture holes 2 4 1

21 Weld plug library feature (w/i SW) & standards 2 3 4

29 Standardization for carrot/casting size 2 3 4

6 Produce P.O. requisition and document process 2 2 3

33 Coating standards & guidelines 2 2 4

35 Standardization for cleaning guidelines / standard notes 2 2 4

45 Determine if mold materials can be ordered earlier 2 1 4

4 Metric Development for New Product Development Tracking (weekly) 3 3 2

25 Tubing preferred parts list and standards of use (pressure ratings, etc) 3 3 4

40 New Part number templates for MacPac 3 2 8

43 Transition to MoPac 3 2 6

51 Visual management for prototypes on the floor (incoming/receiving) 3 2 4

52 Planner/Product engineer to determine promise date and firm up dev. Order 3 2 4

8 Richmond expediting program - Thermocouples 4 4 8

26 Tube fittings preferred parts list (Swagelok, etc.) 4 4 6

31 Standardization for weld joint designs 4 4 8

Skills Matrix

Dept

Sem

iconducto

r

Food

Life S

cie

nces

Genera

l M

ark

ets

Cast-

In

Circula

tion

Heate

r

IFC

Machin

ed

Asssem

blie

s

Heat

Tra

nsfe

r

Therm

al S

yste

ms

Flu

id D

ynam

ics

Mechanic

al

Desig

n

Meta

llurg

y

Pro

duct

Costing

Agency A

ppro

val

Perf

orm

ance a

nd

Relia

bili

ty

Testing

G,D

, &

T

Solid

Modelin

g

Dra

win

gs

MA

CP

AC

BO

M

FE

A S

oft

ware

Tubula

r H

eate

r

Cable

Heate

r

Sensor

Contr

olle

r

Mold

Heate

r/T

ube

Fix

ture

Machin

ing

Fix

ture

Heliu

m L

eak/

Pre

ssure

Check

Fix

ture

Mike B. (A)

Bob (B)

Jeff (C)

Scott

John (D)

Ken

Zeke

Dept

Route

r E

ntr

y

Foundry

Labor

Rate

s

Machin

ing

Labor

Rate

s

Assem

bly

/

Term

ination

Labor

Rate

s

Heate

r /

Tube

Bendin

g

Pin

nin

g

Casting

Machin

ing /

Machin

ing

Capabili

ties

Ele

ctr

ical

Wirin

g /

Circuits

Genera

l

Term

ination

Assem

bly

Part

Cle

anin

g

Coating

TIG

Weld

ing

EB

Weld

ing

Induction

Bra

zin

g

Spot

Weld

ing

Manual

Bra

zin

g

Packagin

g

Mike B. (A)

Bob (B)

Jeff (C)

Scott

John (D)

Ken

Zeke

MACPAC Router Manufacturing Process Knowledge

MANUFACTURING ENGINEERING KNOWLEDGE

Market Knowledge Product Families Product Engineering CAD Component Design Tooling Design

DESIGN KNOWLEDGEAPPLICATION KNOWLEDGE

Skills matrix crucial to transition from Engineering

specialists to generalists

Shows operator cycle time only

rather than the normal use to

capture total flow time. Each

operators work is color coded.

Bar charts are built off of this

info and it’s an initial shot at

work sequence for engineers.

The baton pass zone will be in

active use particularly during

start up where skills will be an

issue and large blocks of work

make separation of elements

difficult.

Product Activity Analysis Form Symbols

Mapping the process by walking the route

Instructions : Symbols

1) Imagine you're the item going through the Process Work (value add)

2) Walk the Path the item takes Work (non value add)

2) Task must physically change item 3) Record each activity (Working, Waiting, Moving) Waiting (delayed)

3) Must be done right first time 4) Determine if the activity adds Value Waiting (stored)

Moving

Process : Prototype Batavia

Item : Manual cycle time onlyValue

No Days Hours Minutes Added ? Operator

1 Assist account mgr with quotes X 6

2 Inventory review of existing matl X 5

3 Create part # in Macpac/heater calc X 3 3

4 Complete req & deliver order X 5

5 Creates MS Project & excel sheets X 15

6 Enter into Lotus Notes database X 9

7 Log Drawing (get drawing number) X 1

8 Correlate review with QA X 5 First pass, best balance

9 Conduct review meeting X 0.99 30 A 585 Front end/ back end of dsg

Conduct review meeting 30 Model B 573 Model

Conduct review meeting 30 Dwgs C 671 Dwgs

Conduct review meeting 30 D 485 Mfg / mold

10 Update metrics weekly X 8 2314

11 Pick upper part number X 5 5 Order

12 Heater calculations X 47 47 1

Create FEA model @ 5% 5 5 1.5

FEA weighted time @ 5% X 72 72 2

Look up existing parts list X 47 3

Establish pinning X 31 31 4

Establish machine fixture holes X 16 16 5

Determine shaft joint design X 16 16 6

Determine electrical assy style X 78 78 7

Determine coating/cleaning/packaging X 16 16 8

Create solid model X 523 523 9

Create drawings X 575 575 10

Create BOM X 47 47 11

Create lower component drawings X 62 62 12

Create lower part numbers in Macpac X 16 16 13

Enter BOM in Macpac X 16 16 14

Complete designer checklist X 31 15

Update mopac form X 16 16 16

Complete design file X 8 17

13 Set flag for review meeting X 5

14 Conduct mfg'ing review X 20

Conduct mfg'ing review 20

Conduct mfg'ing review 20

Conduct mfg'ing review 20

15 Check inventory X 5

16 Complete countermeasures as required NA

16 Deliver order to purchasing X 5

17 Fixture design heater bending X 60 60

18 Additional time for machine fixtures X 12 12

19 HE check fixture X 14 14

20 Design mold X 0.95 111 111

Order materials X 2 2

Get quotes from outside tool makers X 5 5

Designer places order X 2 2

Complete countermeasures as required X NA

21 Complete quality plan X 10 10

22 Complete router (total time) X 60

23 Send approval drawing to customer X 10 10

24 Incorporate customer changes as req. X 0.82 8 8

25 Resend drawing to customer X 2 2

26 order final components/move to purchasing X 0.96 10

27 Send prints to outside vendors for quote X 10

28 Activate part number in Macpac X 1

29 Get promise date from planner X 5

30 Complete DEV X 5

31 Notify customer service of promise date X 2

32 Create first article drawing X 15

33 Walk to QC, deliver drawing X 5

34 Copy prints for packet X 3

35 Take outside drawings to shipping X 5

36 Deliver packet to mfg team leader X 8

37 Assist mfg with process development X 0.88 50

38 Conduct performance testings as req X 5

Days Hours Minutes

Total Manual cycle Time 2314

Value Added Time 1780

Time

Activity

Value =

1) Customer must think task is important

Page 1 of 2

Wor

kva

lue

add

Wor

kno

n va

lue

add

Wai

ting

Stor

ed

Wai

ting

Del

ayed

Mov

ing

Tran

spor

tatio

n

Dis

tanc

e

© 2004 - Simpler, Inc. 888-LEAN-888 www.simpler.comSM

Simpler

Yiel

d%

righ

t firs

t tim

e

Activity Analysis

Product Brief revised

After – one page with drop

down menu’s & field

requirements

Before – three pages; high source of errors and rework.

Internal Information

Prepared By: Product Manager: Date:

Quote #: Order #: Request Date: Order Date: 1st Qty:

Customer Information

Customer: Contact: Phone:

Watlow Field Sales: Roger Office Phone: 215-345-8130 Mobile Phone: 215-262-5485

Market/Application: Product Class:

Prototype Quantities: Production Quantities: Business Segment

Customer Drawing: Drawing No. Revision: Date Received:

Part Information:

Material: Shape: Size: Similar to:

Volts: Watts: Max Current:

Describe any dimensional limitations and/or how part is mounted:

Describe any height limitations for heater extensions:

Manufacturing Information:

Tooling: New Tooling Req'd?

Production Method: Casting type:

Standard Product: Standard Custom?

Outside Process Needed: Process Type:

Environment Information:

Describe the application:

Max Temp of assembly: Is part enclosed or open?

Operating Temperature: Ramp Time:

Is part in a washdown environment?: If so, PSI:

Electrical Information:

Volts: Watts

Megohm Limits: Hypot Limits:

Wire Type: Heat Shrink Type:

Wire Assembly: dropdown (tbd - John's list) WaterProof?

Connector Type:

Tubing Information:

Tube Size: Tube Material:

Fitting Type: Fitting Material: Pressure Testing?

Comments:

Sensor Information:

Sensor Type: Calibration: Material:

Lead Type: Lead Length: feet

Connector Type:

Additional Specifications:

Coating: Cleaning Specifications:

Special Handling: Special Packaging:

X-Ray: Ultrasound? FEA Required?

Performance Specifications:

Operating Temperature: link Uniformity: Ramp Rate:

Cooling Rate: Uniformity Area: Dimensional Flatness:

120

Watlow Product Brief

Product Class 1 & 2

Tony Meadors

Aichs

Food

1

Yes

Low Eng.

1

Aluminum 319 Rectangular

120

YesToolingFixtures

Cast-In Tilt-Pour

CAST-X 2000 BX13J4G400X-XXX

Yes Welding

350°C / 662°F Open

250°C / 482°F >60

No

MGT Teflon

No

Bare leads

Thermocouple J 304 SS

TFE or FEP/Stranded 3

Standard 1-1/2" Split Leads

Bare

No No No

No

Print

Preferred Parts List Standard For

Termination

Design StandardsWire Derating, Common Wires Sorted by AWG

Description:

Insulation:

Conductor:

Watlow

Part NumberColor Comments

conductor

OD (in)

conductor

CMA(circ

mils area)

Insulation OD (in)

min./nom./max.AWG @40 C

@101 to

120 C

@121 to

140 C

@141 to

160 C

@161 to

180 C

@181 to

200 C

@226 to

250 C

@ 276 to

300 C

@ 326 to

350 C

@ 376 to

400 C

24 9 7.1 6.9 6.7 6.5 6.2 5.5 4.8 3.9 2.7

530-35-11-22 Natural 0.030 700 .099/.103/.109 22 12 9.5 9.2 9.0 8.7 8.3 7.4 6.4 5.2 3.6

530-35-11-20 Natural 0.037 1000 .104/.108/.114 20 18 14.3 13.8 13.5 13.0 12.5 11.1 9.6 7.8 5.4

530-35-11-18 Natural Common leadwire 23 18.2 17.6 17.2 16.6 16.0 14.1 12.3 10.0 7.0

530-35-11-27 Black 23 18.2 17.6 17.2 16.6 16.0 14.1 12.3 10.0 7.0

530-35-11-28 Red 23 18.2 17.6 17.2 16.6 16.0 14.1 12.3 10.0 7.0

530-35-11-16 Natural 30 23.8 23.0 22.4 21.6 20.8 18.4 16.0 13.1 9.1

530-35-11-25 Green Ground 30 23.8 23.0 22.4 21.6 20.8 18.4 16.0 13.1 9.1

530-35-11-14 Natural 45 35.6 34.4 33.6 32.4 31.2 27.6 24.0 19.6 13.6

530-35-11-23 Green Ground 45 35.6 34.4 33.6 32.4 31.2 27.6 24.0 19.6 13.6

530-35-11-24 Black 45 35.6 34.4 33.6 32.4 31.2 27.6 24.0 19.6 13.6

530-35-11-29 Red 45 35.6 34.4 33.6 32.4 31.2 27.6 24.0 19.6 13.6

530-35-11-12 Natural 56 44.4 42.9 41.9 40.4 38.9 34.4 29.9 24.4 16.9

530-35-11-26 Green Ground 56 44.4 42.9 41.9 40.4 38.9 34.4 29.9 24.4 16.9

530-35-11-10 Natural 0.116 10500 .220/.225/.231 10 75 59.4 57.4 56.1 54.1 52.1 46.1 40.1 32.7 22.7

530-35-11-8 Natural .225/.262/.270 8 104 82.4 79.6 77.8 75.0 72.2 63.9 55.5 45.4 31.5

530-35-11-6 Natural .298/.305/.313 6 138 109.3 105.6 103.2 99.5 95.8 84.7 73.7 60.2 41.8

MGT, NPC Wire (Preferred) Current capacity

18

16

14

120.093

0.077 .142/.146/.1524100

6500 .159/.163/.169

0.059

0.046 .115/.119/.125

.126/.130/.136

1600

2600

450C, 600V

MGT, UL5107

NPC - 27%

Gray text = not preferred

EXAMPLE

Design standards avoids mistakes and reduce waste

looking for information

Kaizen # 3 Summary

Accomplishments

•Component modularization

•Tooling and fixturing modularization

•Scheduling improvement

•Mold drawing automation

•Configured standard products

•Established sub cell for less complex jobs

•Created visual backlog indicator

Results

•Reduced lead time by 21%

•Reduced fixturing costs by 71%

•Reduced mold design time by 38%

Accomplishments

Standardization:• He Leak Check Fixtures

– No mechanical fasteners• Use weight of fixture (SST)

– 3 parts maximum• Middle cylinder optional for longer

terminations

– Custom adaptor plate• Simple design

Benefits:

• Decrease delivery and cost due to simpler design

• Reduce the number of new custom fixtures that are needed.

Fixture 202057A01

40 to 16 reducer

Clamp, size 40

Clamp, 16

After:

Before:

One clamp

junction

Optional

spacer

Simple

adaptor

plate

Universal

Fixture

Accomplishments

Lead-Time Reduction:• Early prototype order scheduling

• Use Master Routers

• Use skeleton BOM’s

– Request prototype manufacturing order day of Initial Design Review

– Engineering Regen’s order when complete business system documentation is in place

• Changes business system description to *NPDT* when complete

Benefits: 1. Early notification of promise dates to customer

2. Allocate Production resources early in process

3. Use business system to plan fixturing and documentation completion dates

4. Easier to communicate customer change effect on delivery

Accomplishments

Lead-Time Reduction:• Ordering of long lead-Time Components

– Identify key components in Initial Design Review

– Add to form so that Designers know which components to

design first

– Order and expedite components ASAP

• Prior to completion of entire design and customer approval

Benefit:

• Reduces component procurement time• NOTE: Does add risk of component rework or scrap.

Accomplishments

Lead-Time Reduction:• SolidWorks Mold Drawings

– Automate the creation of

mold drawings

• Create a template with

standard views and

automatic dimensioning

Benefit:

• Save ½ to 1 day of

Design time

Accomplishments

High Complexity

Design ProductsLow Complexity

Design Products

• Created two flow paths in design cell to improve flow and

reduce Lead time of less complex jobs

•Less complex jobs flow faster because they don’t wait behind

more complex jobs

Product Engineer

Design Cell I (High

complexity)Design Cell II

(Low Complexity)

Sr. Designer

Sr. Designer

Designer II

MFG Engineer

Sr. Designer (Mold/Tooling Design)

Technician Specialist

Creating flow increases velocity

Overall Site Results From Reduced Prototype

Lead Time

Revenue by Quarter

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

$5,000

Q3-

01

Q4-

01

Q1-

02

Q2-

02

Q3-

02

Q4-

02

Q1-

03

Q2-

03

Q3-

03

Q4-

03

Q1-

04

Q2-

04

Q3-

04

Q4-

04

Q1-

05

Q2-

05

Q3-

05

Q4-

05

Q1-

06

Q2-

06

38%

CAGR

• Quote win rate increased by 15% from 2002 to 2005

• Doubled number of prototypes with same number of employees

Prototype Lead Time History

0

2

4

6

8

10

12

2002 2003 2004 2005 2006

Year

Lead T

ime (

weeks)

Continual improvement in process using Kaizen approach has

driven results even as project complexity has increased

• Kaizen #4 planned for 4th Quarter 2006

based on output from project trouble

charts. Will include a focus on:

– Creating separate value stream for

manufacturing prototypes using a dedicated

manufacturing cell and resources

– In source manufacturing of fixturing

– Creating design manuals

Next Steps

Lean principle of Perfection will continue to be applied to gain

a competitive advantage

Lessons Learned

• Lean principles commonly applied on the

manufacturing floor can be equally applied to the

administrative areas (though it may seem tough at

first)

• You can kaizen the same area several times and will

continue to make significant improvements

• Have to challenge paradigms to be successful

• Design standardization is critical to shorter prototype

lead time

Shorter prototype lead times drive growth opportunities

Thank You

Q&A