Lean Enterprise System Implementation Fullerton CA SEA Stage

Lean Enterprise System Implementation Fullerton, CA SEA Stage 1 Certified November 7 th 2011

Welcome to National Technical Systems Main Building Mechanical Department 1536 & 535 E. Valencia Drive Fullerton, Ca. 92831 2

About NTS Fullerton is part of the largest worldwide networks of independent testing laboratories providing expert engineering and testing services to a wide range of industries in both the commercial and military sectors. NTS Fullerton has obtained clearance from the Department of Defense to service all COMSEC and Secret programs. 3

What is 6 S? 6 S is a standardized, continuous improvement methodology focused on the cleanliness and order of the workplace. 6 S is a team based system that uses visual cues to reduce non-value added activities and promote a safe work environment. 6 S empowers the workforce to take ownership and accountability for their work environment. 4

The Six S’s • Eliminate all unnecessary tools, parts, and instructions. Go through all tools, materials, and so forth in the plant and work area. Keep only essential Sort items and eliminate what is not required, prioritizing things as per requirements and keeping them in easily-accessible places. Everything else is stored or discarded. • There should be a place for everything and everything should be in its place. The place for each item should be clearly labeled or demarcated. Items Straighten should be arranged in a manner that promotes efficient work flow, with equipment used most often being the most easily accessible. Workers should not have to bend repetitively to access materials. Each tool, part, supply, or piece of equipment should be kept close to where it will be used – in other words, straightening the flow path. Safety • Keep the workplace tidy and organized. At the end of each shift, clean the work area and be sure everything is restored to its place. This makes it Shine easy to know what goes where and ensures that everything is where it belongs. A key point is that maintaining cleanliness should be part of the daily work • Work practices should be consistent and standardized. All work stations for a particular job should be identical. All employees doing the same job Standardize should be able to work in any station with the same tools that are in the same location in every station. • Maintain and review standards. Once the previous 4 S's have been established, they become the new way to operate Sustain 5

3. 1. 1 Kaizen Process • How does your organization set and review priorities for Kaizen events? – Created a general Kaizen process document – Using employee CI suggestion sheets – VOC surveys through CSA’s • How is recognition for team members provided and who is involved? – Gift Card Program – Monthly All Hands Meeting recognition • 6 S Management Board Review Meetings • How are lessons learned shared with others who can benefit? – 6 S Management Board Review Meetings – Monthly All Hands Meetings – Special Meetings when necessary – Email 6

3. 1. 2 6 S Visual Workplace Process • How does your organization ensure effective deployment of 6 S Visual Workplace strategies for workplace organization? – By conducting standardized training and deployment Kaizens • How are the process flow, production status, employee training status and continuous improvement effort clearly displayed and visible in the office and factory floor? – Through the use of a 6 S Management Boards • How does your organization ensure that work areas are kept consistently free of dirt and clutter? – By utilizing check sheets and audits • How are improvements reviewed and recognized? – CI/Feedback system implemented – Rewards system implemented 7

Fullerton Facility 6 S Highlights • 6 S success team drafted • Created a full deployment roadmap for Fullerton facility • Machine Shop operating with full 6 S deployment as of April 2011 • Mechanical Department operating with full 6 S deployment as of June 2011 Future Goals • • Environmental Department – 6 S Metrology Department - 6 S/Quick Changeover EMI Department -6 S Vibration Department -6 S 8

Benefits / Outcomes of 6 S • • • Efficient and effective organization Safer workplace environment Improves employee morale Alignment to corporate strategic vision Fewer rework due to defects and miscommunication Eliminates excess equipment and inventory Fewer equipment breakdowns and longer equipment life Better understanding of operational status Motion and waste reductions Improves production schedules 9

Machine Shop NTS’ Machine Shop is an internal support service readily available at the request of any department. The machine shop typically deals with custom fabrication to suit the customers product and its test environment. The machine shop also performs repair and modification to facility equipment. 10

Mechanical Department NTS’ Mechanical Laboratory and its engineers routinely design and perform challenging test programs on all types of equipment and components. NTS engineers accurately reproduce various flow, stress, fatigue and load conditions on test specimens that simulate actual operating conditions. 11

The Dashboard NTS Fullerton has developed a unique way to monitor display and improve upon day to day activities. We have developed a visible, centralized, department specific “Dashboard “ located in each department. 12

The Dashboard Elements • Key Performance Indicators (KPI’s) are used to track issues on the floor. For the Machine Shop, On Time Delivery (OTD) and First Pass Yield (FPY) are monitored. • On Time Setup and Start (OTSS), and On Time Delivery (OTD) are monitored in the Mechanical Department OTSS, OTD, FPY issues are tracked as they occur and posted on the board along with and exception code. Examples of exception codes are, mechanical failure, change of scope, power outage, etc. Weekly, the KPI’s along with their exception codes, are visually displayed to show the trends and common issues leading to delays for management to evaluate and address. Visual Performance Trends Exception Reporting 13

The Dashboard Elements • • • A visible safety display is posted and is updated weekly to show any safety issues. Shop layout with clear cleaning assignments Latest 6 S and safety audit reports Area for feedback and continuous improvement ideas. Internal process maps 14

The Dashboard Benefits • Helps the organization focus on improving its production, planning, and execution processes by visually showing the weak spots and common issues that arise. These common issues are funneled up to Management for review and provide a case for corrective action. • Provides the department members with the ability to submit written improvement suggestions knowing that they will be addressed appropriately. This provides a method of continuous improvement. • Keeps the area clean of dirt and clutter with weekly 6 S audit and safety check sheets with results posted in clear view. Cleanliness is also managed with a floor map showing individual daily cleaning responsibilities. • Flow charts clearly define the department process. 15

Machine Shop – Before and After 16

Machine Shop – Before and After 17

Machine Shop – Before and After 18

Mechanical Department – Before and After 19

Mechanical Department – Before and After 20

Summary NTS has benefitted from this venture in the following ways. • Increased morale by allowing department members to take ownership of their areas • The 6 S process has put a stronger emphasis on safety by making practices visible to all. • Through the dashboard we have created a better real time view of the operational status. • Minimized miscommunications and delays by better understanding repeat problematic issues through hard visual data • SEA has provided high level visibility for the company Over the nest few months NTS will be working with the SEA to deploy the new standards across multiple facilities. We look forward to the increased efficiency. 21

Thank You For more information on SEA, please visit Seaonline. org For questions, suggestions and comments regarding 6 S or any test related activity at this facility please contact Robert Black robert. black@nts. com National Technical Systems, Fullerton, CA. 22