Introduction

Introductions Name Company Current position Years of service (Ask the group to introduce themselves and cover the items noted in the slide, so everyone has an understanding of who is in the workshop.) (If it is possible to note and total the number of years experience around the room, it makes a good point to share along with commentary about the diversity of backgrounds on the team.)

Workshop Techniques Utilize “Lean Organization” approaches focused on aggressively identifying and eliminating waste. Quality Service Price Increased Capability to Deliver Great Products/Services Greater Value for the Customer Improved Worldwide Competitiveness Which results in Driving Enhanced Technology (Walk through slide.) Note the results are goals we are all seeking: security, jobs and growth. There Is No Substitute for Quality. There Is No Excuse for Failing in the Area of Service. There is No Differentiator Without the Advantage Provided by Technology. There Is No Future in Not Being Cost Competitive on a Global Basis.

Goal Transfer knowledge / commitment to lean Redefine / improve an existing process Involve team members Aggressively implement the changes Identify future process improvements Demonstrate the magnitude of improvement potential Q S T P The Supplier Development workshop goal is to: Share and transfer knowledge gained through our involvement with other industries, literature, working experience and application of principles. With this knowledge a commitment to lean should surface in recognition of the benefits derived. Redefine an existing process by dissecting the current process through concepts clarified during the workshop, and then creating a “new” process based on recommendations from the team. Utilize expertise of all team members by bringing together a cross-functional group of employees that includes all phases of the process. Implement the change immediately. The workshop is “action” oriented. Immediate change is expected during the workshop. It’s TQM with teeth! Identify future process improvements means that action items determined by the team to be short term (requiring 0-6 months to implement), and long term (requiring 6-12 months to implement), will be documented. Timing and a “champion" is attached to each. Demonstrate the magnitude of improvement potential: The methodology of Lean Techniques identifies the waste that exists within a process, defines how to eliminate the waste, and supports the team in creating a new process by the end of the workshop. Our intention is that Lean Techniques will be embraced by the organization and repeated again and again to drive waste out of all processes throughout the facility.

Expectations Safety cannot and will not be compromised! The team will aggressively identify & eliminate WASTE Significant improvement will be gained in the measurement parameters (Read the slide, emphasizing that quality and safety will not be compromised, and likely will be enhanced!) Significant improvements may be expected as over 15,000 workshops have been completed worldwide, with an average of over 50% improvement in the measurement areas.

Process Select team members Make all people affected aware of what is going to happen Identify pilot area Define current situation Identify opportunities to improve Look for new opportunities Process Recognize efforts of people Analyze & select Walk through transparency This slide depicts the workshop process. - A target area is identified at the pre-workshop meeting. - The team is selected. - All stakeholders are made aware of what is to happen. - The workshop begins and the team defines the current state. - The team will surface all opportunities for improvement. - The team will analyze all ideas, and select the best. - A new process will be developed, focusing on the low cost ideas first. - The plan will be discussed with the stakeholders. - The ideas will be implemented, focusing on immediate improvements. - The team will verify and adjust, making sure the vision is correct. - Before leaving, we’ll recognize the efforts of those involved. - And we’ll continue to look for new opportunities to apply the tool! Discuss plan with stakeholders Verify & adjust Implement new method A.S.A.P. Develop new method (apply zero/low cost ideas first) OPERATION: FROM:___________________________ QUANTITY PER SHIFT:______________ CUSTOMER CYCLE TIME:__________________ TO: _____________________________ SHIFT:________ OPERATOR CYCLE TIME:__________________ DESCRIPTION OF ELEMENT TIME STANDARD IN- QUALITY CRITICAL NO. OPERATION HAND WORK MACHINE WALK PROCESS STOCK CHECK SAFETY WORKSTATION AREA DRAWN TO SCALE C Q 03/23/94

What is Lean? Who can answer this question for me?

Defining Lean Occurring at the same time To be simultaneous To operate in unison To coincide with an action Moving at the same rate Minimum use of resources Some of Webster’s definitions are (read slide).

Lean Organization Definition: A systematic approach to the identification and elimination of waste and non-value added activities through continuous improvement in all products and services This is our definition of a lean organization. Note that it is a systematic approach, and not a “program.”

Lean Organization Characteristics: Equipment used synchronously to demand Utilizes people to their fullest capacity Simple, flexible, visible, & responsive Requires constant change Creates products/services with minimum consumption of: - Capital investment - Floor space - Materials - Labor - Time - Distance The characteristics of a lean organization are: - Equipment used to demand (which is usually not top speed) - Utilizes people to their fullest capacity (which requires cooperation, training and understanding) - Is simple, visible, flexible, responsive (vs. complicated, inflexible, hidden and slow) - Requires constant change (continuous improvement) - Creates products or services with a minimum consumption of: - Capital investment - Floor space - Materials - Time - Labor - Distance

Lean Organization Lean Organization Pull Systems Small Lots Standardized Operations Machine Process Capability Level Scheduling Reduction of Variation Supplier Development Lean Organization Lead Time Reduction Transportation Plant, Machine & Office Layout Error Proofing Containerization We refer to this as our “starburst”. It captures the 16 key strategies we have found to be critical in becoming a truly lean organization. You’re probably using many of these today. However, you will optimize operations only by utilizing all of these strategies as a singular method for running your company. Using them individually gains some improvement, but each tool’s effectiveness will never be maximized until they link up with each other. As you understand and use each strategy, they will reveal their interdependence and relationship to each other. During the workshop we touch on each of these strategies to help us identify and eliminate waste. However, we will focus on several (i.e., Lead Time Reduction, Standardized Work, Workplace Organization and Visual Controls, and Plant, Machine and Office Layout) to help address the opportunities surfaced by the team. Workplace Organization & Visual Controls Quick Set-up Planned Maintenance Employee / Process Control 09/23/97

Lean Organization Workshop Path to Lean Organization Step #1 Step #2 Waste Elimination Tools What is Waste? Lean Organization This is a “footprint” of the workshop week’s activities. First we will discuss and share an understanding of waste. Then we will use a process that is applied in the worksite to surface where waste is located, and we’ll apply several waste elimination tools. Finally we’ll implement the change during workshop week! This step is what sets Lean Implementation apart from other continuous improvement processes--immediate implementation! Step #4 Step #3 Aggressive Implementation Brainstorming & Visioning 01/20/98

Lean Organization Our Four Step Focus Step One - Understand what waste is Step Two - Use appropriate waste elimination tool to eliminate specific waste(s) identified Step Three - Brainstorm to develop a vision so as to create a plan Step Four - Aggressive implementation of plans. Do it now!!!! This is our four-step process. (Read slide.) We’ll identify, then eliminate waste in the process. And we will aggressively implement the change. It’s the “aggressive implementation” that makes the difference between Lean Implementation and other continuous improvement processes. 01/20/98

Lean Implementation Training Agenda Example DAY 1: 8:00 - 5 00 DAY 2: 8:00 - ? DAY 3: 8:00 - ? DAY 4: 8:00 - 12:00 Introductions Why we are here: Competitive situation Market conditions Define Concepts Waste Lead Time Value Added Non Value Added Standardized Operations Workplace Organization Visual Controls Define Current State Productivity Inventory Layout Brainstorm potential solutions to opportunities Develop new working method Discuss plan with stakeholders Analyze, select, prioritize good ideas Implement new working Continue Implementation Finalize Implementation Verify Adjust Document improved and future states Prepare wrap-up presentation Give wrap-up (Use either this slide, or the one to be used in the workshop if a Lean Implementation Workshop is to be performed.) This is an example of a typical workshop agenda. Note that it is very flexible in running shorter or longer based on the needs of the worksite. This flexibility extends to the agenda topics which are modified again to meet the needs of the team, and the opportunities that may exist. It is a full schedule. Notice that some days may go longer so that the team might accomplish necessary plans to achieve implementation as soon as possible. It’s important to note these longer days so that participants may plan ahead for child care or any other personal responsibilities. The success of the workshop greatly depends on 100% attendance.

Lean Implementation Workshop Summary of Results Date of Workshop: ____________ Short Term F/U date: ____________ Long Term F/U date: ____________ Lean Implementation Workshop Summary of Results Supplier: Sponsoring Division: Process: PPAP Requirements Addressed (Y/N) Creativity Team Name & Number: After Workshop Parameters Before Workshop Improved State (Current Week) Short Term (0-6 months) Long Term (6-12 months) Measure %Improved Measure %Improved Measure %Improved Productivity (parts/person/day) Forecast Actual Forecast Inventory ($) Actual Layout (Feet) Forecast Actual Lead Time (Time______) Forecast (If a Lean Implementation, Process Reengineering, Advance Workshop is selected then show this slide.) This is the Summary of Results form and is designed to capture the workshop impact, both implemented (immediate) and forecasted (short and long term). The initial measurements are completed on the last day of the workshop, and it is a deliverable report of the team’s accomplishments. (Reference the measurement handout for definitions and calculations.) The initial short and long term measurements are the forecasted impact of the short and long term action plans. During the follow-up reviews, the actual impact is calculated and entered on this form, identifying the actual impact of the efforts to date against the original forecasted measurements. Continuous improvement is the goal. The expectation is that at each follow-up review, the measurements will reflect improvement. Actual Additional Savings Identified Subject # of Items Date & updated $ Potential $ Approved $ Rejected Resource Conservation & Pollution Prevention Other: Investment, Specifications, Transportation, etc. TOTAL: Team Leader Name/Phone:

Norms (Operating Guidelines) 1. Be on time 2. Everyone participates, has equal voice 3. One speaker at a time 4. Handle other business on breaks 5. Make pagers silent 6. Function as a team 7. Speak loudly and clearly 8. No one leaves until the new process works! 9. HAVE FUN! Since we will be working closely as a team, it is important for us to agree on some workshop guidelines. (Read through the list, emphasizing why each is important.) We’ll need to “police” ourselves and each other in adhering to these rules. Is there a problem with any of these? Any suggestions for additional guides? If necessary, we can add to this list at any time this week.

Administrative Details Classroom location(s) Rest room(s) Telephones Message handling / contact phone number Lunch area / timing Refreshments Copy machines Safety requirements Starting / ending time (Read the slide and explain the arrangements.) (Note the message handling phone number and display it in the room for all to see.)