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

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

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

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

Then Raw Material Roof Ass’y Raw Material Mud Pit Raw Material Side Wall Jig End Wall Plumb & Tile Mud Pit Raw Material 5 Interior Walls 1A Frame 1B Post-Frame 2B Pre-Floor 2A HVAC, H 2 O, DWV 2C Decking3 Plumb, Util., Floor4 Cabinet Set 6 End, Side, Drywall & Electrical 7 Side, Drywall, Elec. 8 Marriage, Drywall & Electrical 9 Roof Set, Drywall & Electrical 10 Rough Roof, Exterior & Interior 11 Shingle, Siding & Interior 12 Sofit & Fascia 13 Mud, Dry, Prep Paint, Dry, Finish Heater Cabinet Shop Interior Walls Cabinet Tops Upper Cabinet Cabinet Shop Plumb & Tile HVAC Mezzanine

Now Interior Walls Cabinet Tops Upper Cabinet Raw Material Roof Ass’y Raw Material Mud Pit Side Wall Jig End Wall Mud Pit HVAC Mezzanine Cabinet Shop Plumb & Tile HVAC Mezzanine 2B Decking 3 Plumb, Util., Tile5 Interior Walls 6 End, Side, Drywall & Electrical 7 Side, Drywall, Elec. 8 Marriage, Drywall & Electrical 9 Roof Set, Drywall & Electrical 10 Rough Roof, Exterior & Interior 11 Shingle, Siding & Interior 12 Sofit & Fascia Paint, Dry, Finish 13 Mud, Dry, Prep Paint, Dry, Finish 13 Mud, Dry, PrepPaint, Dry, Finish 2A Floor Box Heater Raw Material 4 Cab. & Utility Set Buffer 2A Electrical 13 Mud, Dry, Prep

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

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

Manufactured Housing Research Alliance Jordan Dentz (212) x13 Factory Building Symposium on Lean Production