Manufacturing “Time” at Nicolet Plastics the successful implementation of Quick Response Manufacturing

2 What is “time” worth to you ?  If someone offered you a week of time…what would you do with it ?  How could you benefit from it?  How could you exploit “time” for your business? –Time is money…the difference between Silver or Gold… –Speed and flexibility are at the heart of competitiveness –The benefits of time-based competition and make-to-order strategies have long been recognized both globally and domestically .

3 “Time” Really is Money…and Cost Can Cost you  At Nicolet Plastics, We Manufacture “Time”!  In 2009 Nicolet Plastics embraced and began implementation of Quick Response Manufacturing throughout our organization  The Goal was to exploit a competitive advantage in a marketplace that has been focused on long run production, piece part optimization  We set out to exploit and leverage our strategic variability through our commitment to being : Fast (Shorter Lead Times) Fluid (Customer Responsiveness) Flexible (Process Integration=Higher Productivity)

4 Implementing Quick Response Manufacturing  Worked with Quick Response Manufacturing Institute and IQMS  Creating 70 Believers in 24 Months  The ABC’s of Quick Response Manufacturing…Why Time is Money and Cost can Cost you. 1.Recognition/Reward for Cross Training – Skills Matrix Development 2.Education and Making it Real – Book Review, Accountable Teams, QRM and Nicolet Format 3.Continuous Improvement Program – QRM Time Improvement Proposals 4.Time Based Metrics and QRM – Value Stream Accounting

5 The Results of Manufacturing “Time”  Lead Time Reduction – Achieved a 7 day reduction. We will reduce 4 days in the next month to get to goal of 7 days.  Total Finished Goods Inventory reduced from high of $500,000 in 2008 to average of $200,000 in 2012; while doubling total sales.  Increased of Finished Good Inventory Turns from 11 to 25  Implementation of a Time Based Scrap Hours Scrap led to a 45% reduction in for 2012 from 2011  Improved Working Capital Position (lower inventory) enabled debt pay-down  EBITDA for 2010 – 2012 will exceed the EBITDA for the preceding 10 years, COMBINED.  Return on Capital Employed (ROCE) in the 30%+ range  2010 was the best year in Nicolet’s history from an income standpoint will be the best year in company history, both in terms of revenue and earnings.

6 Manufacturing “Time” with QRM How much “Time” could your organization manufacture ? What would that “Time” be worth to your business?