Lean Implementation at WIC example 2 5 SS

Lean Implementation at WIC (example – 2. 5” SS Pressure Gauge) Pressure and Temperature Measurement

• WIKA Global Snapshot (7 yrs ago – today) • Canada • USA • Mexico • Poland • Germany • Finnland • Benelux • Russia • U. K. • Ukraine • France • Kazakhstan • Austria • Switzerlan • Spain • Italy • Iran d • Egypt • India • Middle East • Korea • Japan • China • Taiwan • Malaysia • Singapore • Brazil • Argentina Pressure and Temperature Measurement • South Africa • - 9 Manufacturing Facilities • - 30 Sales Organizations • Australia

WIKA USA § § Lawrenceville, Georgia / Metro Atlanta State-of-the-art manufacturing facility 210, 000 Sq. Ft. (110, 000 -1991; 100, 000 -1997) 9, 000 units produced annually § ISO 9001 - certified (worldwide) Since 02/2003: ISO 9001: 2000 § 600 + employees § Sales 2005 - $78 Million, 2006 - $92 Million, 2007 -$96 Million Pressure and Temperature Measurement

Pressure and Temperature Measurement

What Is Lean. Sigma Transformation? § Focusing on lead-time reduction to improve § § responsiveness Achieving simultaneous improvements in quality, cost, and delivery Leveraging improvements for growth in revenues, earnings, and market share Building a continuous improvement culture to sustain the gains Deploying Kaizen Breakthrough Methodology for rapid transformation Pressure and Temperature Measurement

Strategic Issues For Business Systems Quality 12 Cost 9 3 6 Delivery Pressure and Temperature Measurement

Lean. Sigma® Principles § Value adding focus § Link processes to create flow § Pace work to customer demand § Reduce process variation § 100% customer satisfaction Pressure and Temperature Measurement

Creating Competitive Advantage Reducing Operational Lead Time Across Your Value Chain Time Order Entry Production Planning Suppliers Manufacturing Distribution Customers Accounts Receivable Admin Business Process Kaizen Shop floor Kaizen Prod O-E Plan Supp MFG Dist Cust A/R Operational Lead Time Pressure and Temperature Measurement

Manufacturing Lead Time 1% Typical Company Original Lead Time 99% 0. 5% Traditional Manufacturing Improvement Kaizen Waste Reduction 99. 5% 10% Minor Improvement 90% Major Improvement Time Value-Adding Activities Pressure and Temperature Measurement Non-Value-Adding Activities

Kaizen Breakthrough Methodology Train Observe, Organize, Implement & Define Pressure and Temperature Measurement Improve Produce

Kaizen Breakthrough Principles • Clear objectives • Team process • Tight focus on time (one week) • Creativity before capital • Quick & simple, not slow & elegant • Necessary resources immediately available • Immediate results (new process functioning by end of week) Pressure and Temperature Measurement

Achieve Dramatic Improvements In Short – Term Operating Results Worker Productivity 20 – 30% WIP (Inventory) 50 – 70% Floor Space 30 – 40% Quality (Rejects) 50 – 70% Pressure and Temperature Measurement

Shopfloor Day 1 Layout and Material Flow 5 1 6 Work Sequence 1 FG 5 6 FG C E 3 3 2 2 RM 4 Cycle Times Pressure and Temperature Measurement A RM 4 D Other Issues B

Shopfloor Day 1 (Continued) Optimal Staffing Level 70" Collect & Organize Ideas TT = 57" Kaizen Newspaper 45" 35" A 30" B E D C Problem Action Who When Tool pickup Create holders Dan 3: 00 Parts presentation Design bins / racks Sarah 4: 30 Cooling rack obstructs flow Relocate rack Maint. Tonight Result Holders installed å OCT Operators required = = TT = 57 Finalize Scope 1 5 6 Finalize Objectives FG WIP – Reduce by 80% Space – Reduce by 50% 3 2 4 Pressure and Temperature Measurement RM Productivity – Increase by 75%

Shopfloor Day 2 3 B 2 1 RM A 4 C Pressure and Temperature Measurement 5 6 FG

Shopfloor Day 3 Test, Run, Validate, & Improve Hour-By-Hour Chart l et Ac tua rg Ta Ta Hour rg et Ac tua l Hourly Cumulative Comments / Downtime 8– 9 30 15 Training new work sequences 9– 10 30 16 60 31 Operator #2 over takt time 10– 11 25 18 85 47 Line change for new model (10 minutes) 11– 12 30 23 115 70 Wrong parts delivered for new model (8 minutes) 12: 30– 1: 30 30 27 145 97 Workers late returning from lunch (4 minutes) 1: 30 -2: 30 30 27 175 124 Quality problem at press - line stop (5 minutes) 2: 30 -3: 30 25 25 200 149 No significant problems 3: 30 -4: 30 30 29 230 178 End-of-shift cleanup (2 minutes) Pressure and Temperature Measurement Document New Operation

Managing Change • Discuss proposed changes with operators • Display status updates in production area • Walk operators through a mock layout • Explain the new layout before they leave • Back off-let them try it & talk about it Pressure and Temperature Measurement

Kaizen Team Ground Rules • • Keep an open mind to change Maintain a positive attitude Never leave in a silent disagreement Create a blameless environment Practice mutual respect every day Treat others as you want to be treated One person, one voice—no position or rank • There’s no such thing as a dumb question • Understand the process and Just Do It! Pressure and Temperature Measurement

“Quick and crude is better than slow and elegant” First, try it with the knowledge available Improve upon the results Base analysis on the facts (data) This leads to quick and elegant solutions The germ of the next action (kaizen) will sprout from it Take no action and nothing will happen Pressure and Temperature Measurement (not seeing is not knowing)

OLD LAYOUT Pressure and Temperature Measurement

LEAD TIME = 3 WEEKS (1 Week Business, 2 Weeks Mfg. ) 23 X. 5 X. 2. 5" SS Total Dist. Traveled = 170 ft Pressure and Temperature Measurement

Metrics Before Kaizen Line Name: 23 X. 5 X 2. 5" SS Improvement Measurement # of operators / day (all shifts) Before Kaizen 13 Total operator cycle time Output (units / day) Productivity (units / hr / operator) Work in process inventory 8. 27 9, 055 pcs Floor space 1, 940 Setup time 75 sec Quality (# of rejects / day) Lead time Safety Ergonomics Pressure and Temperature Measurement 3 weeks

Video 1 (Before Kaizen) Pressure and Temperature Measurement

Wastes in Manufacturing • Defective products • Excess motion • Processing • Overproduction • Transportation • Inventories • Waiting Lead time reduction is achieved by identifying and eliminating waste. Pressure and Temperature Measurement

Work Station Design/Material Resupply Pressure and Temperature Measurement

U-Shaped Cell with Supermarket I H G F E A Waterspider I H G F Pressure and Temperature Measurement E D C B B A C Aisle D

NEW LAYOUT Pressure and Temperature Measurement

LEAD TIME = 8 HRS with MTO 4 days otherwise Total Dist. Traveled = 16 ft Pressure and Temperature Measurement

Pressure and Temperature Measurement

Video 2 (After Kaizen & MTO) Pressure and Temperature Measurement

Kaizen Results Achieved Pressure and Temperature Measurement

Pressure and Temperature Measurement

Kaizen Event – Order Entry 1/14 – 1/18 Pressure and Temperature Measurement

Scope From order receipt through order shipment for orders received by the distribution group. Pressure and Temperature Measurement

Goals and Objectives • Tasks 80 % • Decisions 50 % • Delays 30 % • Inventory 80 % • Non Value Added 50 % Pressure and Temperature Measurement

Old Layout & Workstation(s) Pressure and Temperature Measurement

Takt - Time Pressure and Temperature Measurement

• Takt Time vs. Cycle Time Pressure and Temperature Measurement

Old Process Map Pressure and Temperature Measurement

Pressure and Temperature Measurement

• Old Process Map Summary Pressure and Temperature Measurement

New Process Flow Pressure and Temperature Measurement

New Process Layout Pressure and Temperature Measurement

Kaizen Results Summary Pressure and Temperature Measurement

Q&A Thank You Pressure and Temperature Measurement