© Copyright 2012 Tag and Label Manufacturers Institute, Inc. All Rights Reserved. Title of Presentation | Presenters Name What Lean Means to Printers Young Leaders Development Organization – TLMI Annual Meeting 2012

© Copyright 2012 Tag and Label Manufacturers Institute, Inc. All Rights Reserved. Title of Presentation | Presenters Name Value of Lean Kelly Ferrara Project Engineer Whitlam Label Company

© Copyright 2012 Tag and Label Manufacturers Institute, Inc. All Rights Reserved. Title of Presentation | Presenters Name The Real Value of Lean Lean at the Core… 1.Focus on Customer Value & Employee Development 2.Ways to better run the business 3.Pursue continuous improvement, just-in-time production 4.Minimize waste 5.Develop a framework of Innovation Reducing setups and make ready is just the beginning.

© Copyright 2012 Tag and Label Manufacturers Institute, Inc. All Rights Reserved. Title of Presentation | Presenters Name Be For Real Lean is a simple concept, but complex to implement and sustain. It took Toyota several decades to refine their ideas It is about human capital development It is about building a culture of curiosity and continuous improvement It is about leveraging the eyes, ears, and brains of the people “on the floor” Alternatives to “the way it has always been done” Your culture will make or break the success of Lean

© Copyright 2012 Tag and Label Manufacturers Institute, Inc. All Rights Reserved. Title of Presentation | Presenters Name Issues We Deal With **Just Averages** Company Size:$10,000,000 Employees:50 Material Purchases:$4,000,000 Total Compensation:$2,500,000 Healthcare:$300,000 Total:$6,850, % Annual Increase$171,250 How do you currently plan to offset the $171,250 cost increase, or 1.7% in lost profit?

© Copyright 2012 Tag and Label Manufacturers Institute, Inc. All Rights Reserved. Title of Presentation | Presenters Name Non-Value Added Items See things through the customer’s eyes – is your estimating group a value added? Some other non-chargeable items to consider: –Waiting for substrate –Waiting for plates/cylinders –Waiting for ink –Waiting for customer –Waiting for quality approval –Waiting for maintenance –Shift clean up –Routine maintenance –Unplanned maintenance –Repairs –Rework –And a bunch of others! Difficult economic times are the right times to reinforce the importance of Lean.

© Copyright 2012 Tag and Label Manufacturers Institute, Inc. All Rights Reserved. Title of Presentation | Presenters Name Quick Changeover Steve Schulte Vice President, Sales & Marketing Mark Andy Inc.

© Copyright 2012 Tag and Label Manufacturers Institute, Inc. All Rights Reserved. Title of Presentation | Presenters Name Optimal Change Overs All market segments report that run lengths are getting shorter Shorter run lengths are driven by several factors –Customer Lean initiatives – reduction of inventories at customer facilities. –Regionalized promotions – causing variations in high running brands –Increase in brand types - more flavors within the same brand family

© Copyright 2012 Tag and Label Manufacturers Institute, Inc. All Rights Reserved. Title of Presentation | Presenters Name Are you looking to get the most out of your team and equipment? Are your change over times higher than expected? Do you even know what your target and actual performance are? Ask Yourself There can be no information without data There can be no improvement without information How Performance Improves with Management Information Improvement Measurement Data There can be no measurement without information There can be no data without shop-floor involvement

© Copyright 2012 Tag and Label Manufacturers Institute, Inc. All Rights Reserved. Title of Presentation | Presenters Name Basic pressure sensitive label, 8-color, UV ink, 50,000 label run Based on 50 weeks per year, 2 shifts, 80% run time per shift What if you save 1 minute per station? Current ProcessOptimized Process Difference Number of jobs1,9822, Direct profit margin potential - annual $636,844$706,143$69,299 Job margin30%30.5%0.5% pts. Change Over Impact

© Copyright 2012 Tag and Label Manufacturers Institute, Inc. All Rights Reserved. Title of Presentation | Presenters Name Basic pressure sensitive label, 8-color, UV ink, 50,000 label run Based on 50 weeks per year, 2 shifts, 80% run time per shift What if you save 2 minutes per station? Current ProcessOptimized Process Difference Number of jobs1,9822, Direct profit margin potential - annual $636,844$789,521$152,677 Job margin30%30.9%0.9% pts. Change Over Impact

© Copyright 2012 Tag and Label Manufacturers Institute, Inc. All Rights Reserved. Title of Presentation | Presenters Name Current ProcessOptimized Process Difference Number of jobs1,9822, Direct profit margin potential - annual $636,844$838,206$201,362 Job margin30%31.2%1.2% pts. Basic pressure sensitive label, 8-color, UV ink, 50,000 label run Based on 50 weeks per year, 2 shifts, 80% run time per shift What if you save 2 min. per station and 3 min. on die change? Change Over Impact

© Copyright 2012 Tag and Label Manufacturers Institute, Inc. All Rights Reserved. Title of Presentation | Presenters Name Current data (change over times, downtime, footage per shift, etc..) Press operators and support staff – measure and report on training Time for the improvements to take place Extra set of aniloxes, ink pans, metering rollers, doctor blade assemblies, print cylinders and change over cart Ownership of the process changes Commitment and willingness to change Standard work Things to Ensure Success

© Copyright 2012 Tag and Label Manufacturers Institute, Inc. All Rights Reserved. Title of Presentation | Presenters Name Options: 1. Create a team and do it yourself 2. Seek outside experts and find solutions to your challenges Where do you start? Prepare your team in the right way!

© Copyright 2012 Tag and Label Manufacturers Institute, Inc. All Rights Reserved. Title of Presentation | Presenters Name Some Benchmarking Ideas Video taping Spaghetti Mapping Stop watch time trails Activity logs Standard work instructions (plate mounting example)

© Copyright 2012 Tag and Label Manufacturers Institute, Inc. All Rights Reserved. Title of Presentation | Presenters Name Create Standard Work

© Copyright 2012 Tag and Label Manufacturers Institute, Inc. All Rights Reserved. Title of Presentation | Presenters Name New Technology Can Help… But economics of a press have everything to do with consumables, waste, time, and labor.

© Copyright 2012 Tag and Label Manufacturers Institute, Inc. All Rights Reserved. Title of Presentation | Presenters Name Low waste reduction between job changes Traditional or ‘older’ technology can easily take feet of material to set up a single job With new flexo, put job into register with in a few meters per color About 30 feet of material from last good label to first good label Even shorter when running versions of a label – which makes up a significant amount of short run work New Flexo Technology - Example Last good label Next job - first good label

© Copyright 2012 Tag and Label Manufacturers Institute, Inc. All Rights Reserved. Title of Presentation | Presenters Name Teamwork The key is getting everyone to work together! 1.There are 19 operations in a standard pit stop 2.Every second saves equates to about 279 feet of track position at 190 miles per hour 3.Team is measuring their performance – constantly challenging themselves 4.Share the Profit – pay bonuses on improvement

© Copyright 2012 Tag and Label Manufacturers Institute, Inc. All Rights Reserved. Title of Presentation | Presenters Name Helpful Calculator Tool Richie Muniak I.D. Images, LLC

© Copyright 2012 Tag and Label Manufacturers Institute, Inc. All Rights Reserved. Title of Presentation | Presenters Name TLMI: Partnering to Grow Through Knowledge and Education Thank you!