Factory Building Symposium on Lean Production January 29

Factory Building Symposium on Lean Production January 29, 2007 Austin, Texas

Level the Load Four Seasons Housing, Inc. Middlebury, IN Austin Baidas, CEO and President

Four Seasons Housing Started: Location: Home type(s): Production: 1994 Middlebury, IN Primarily HUD Code Moderate Limited customization 10 floors/day Market area: Northern US Price point: Design:

Objective: Balance the Line Eliminate non-value added (NVA) activity Reduce cycle time variability › Station to station › Floor to floor

Strategy 1. Map product flow 2. Analyze data to identify causes of cycle time variability 3. Implement solutions that reduce NVA and control cycle time variability

Sources of Variation Double vs. single floor stations Variation in complexity from A to B half Tactic: Convert single floor stations to double floor stations

End Wall Upper Cabinet Plumb & Tile Cabinet Shop 5 Interior Walls Side Wall Jig 6 End, Side, Drywall Side Wall Jig 7 Side, Drywall, Elec. & Electrical HVAC Mezzanine Plumb & Tile Interior Walls Cabinet Tops Then 4 Cabinet Set 2 A HVAC, H 2 O, DWV 3 Plumb, Util. , Floor Raw Material Roof Ass’y 8 Marriage, Drywall & Electrical 9 Roof Set, Drywall 2 C Decking Raw Material Mud Pit 2 B Pre-Floor Mud Pit Heater & Electrical 1 B Post-Frame Raw Material 1 A Frame 10 Rough Roof, Raw Material Exterior & Interior 13 Mud, Dry, Prep Paint, Dry, Finish Paint, Dry, Finish 11 Shingle, Siding & Interior 12 Sofit & Fascia Raw Material

End Wall HVAC Mezzanine Upper Cabinet Plumb & Tile Interior Walls Cabinet Tops Now Cabinet Shop 5 Interior Walls Side Wall Jig 6 End, Side, Drywall & Electrical Side Wall Jig 7 Side, Drywall, Elec. 4 Cab. & Utility Set Raw Material 9 Roof Set, Drywall 2 B Decking Roof Ass’y Buffer 8 Marriage, Drywall & Electrical 3 Plumb, Util. , Tile Mud Pit Heater 2 A Electrical Mud Pit 2 A Floor Box & Electrical Raw Material 10 Rough Roof, Raw Material HVAC Mezzanine Exterior & Interior 13 Mud, Dry, Prep Paint, Dry, Finish Paint, Dry, Finish 11 Shingle, Siding & Interior 12 Sofit & Fascia Raw Material

7 End, Side & Side Wall Jig Upper Cabinet Interior Walls Utility Prep. End Wall Cabinet Tops Future Lower Cabinet 6 Interior Wall Set Mate Wall 5 Cabinet Set, Tile & Utility Set 8 Marriage, Drywall & Electrical 4 Plumb Roof Ass’y 3 Decking 9 Roof Set, Drywall Plumb Side Wall Jig Heater Mud Pit 2 Floor Box & Electrical Raw Material HVAC Mezzanine 10 Rough Roof, Raw Material Exterior & Interior 13 Mud, Dry, Prep Paint, Dry, Finish Paint, Dry, Finish 11 Shingle, Siding & Interior 12 Sofit & Fascia Raw Material

Results Reduced through-put time 27% All production within facility Eliminated NVA protection for outside floors Eliminated NVA moves Identified real-time data collection requirements Started a kaizen project list

Highlights Lean initiative driven by business objective Established lean process Identified root cause Listened to the data Workers contributed mightily

Lessons Lean cannot be forced by one person Involve employees Allow team to own the decisions Lean is a process

Going Forward Refine our lean process Conduct kaizen events to improve efficiency in departments Revise plant layout to convert to double floor stations

Lean Symposium

Factory Building Symposium on Lean Production Manufactured Housing Research Alliance Jordan Dentz (212) 496 -0900 x 13 jdentz@research-alliance. org www. mhrahome. org