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

2. Management Commitment Southern Energy Homes Addison, AL Lamar Dickerson, Director of Lean Manufacturing

3. Southern Estates Plant  Started:1982  Location:Addison, AL  Home type(s):HUD Code  Price point:Moderate  Design:Some customization  Production:5 to 6 floors/day  Market area:Southeast US

4.  Material Flow  Work Space  Conveyance  Quality  Information flow Organization and new hoist relieve strain and speed production Material not close to point of use Product flow rationalized No error proofing Jigs help maintain quality Confusion leads to production of wrong parts Racks and labeling system Interior Wall Build Congestion slowed work Visibility across workstation promotes visual management Lots of toting Then Now

5. Results  Production on target  Reduced from 9 to 6.5 people  Re-assigned workers to other departments  Space reduced by 12%  Wallboard damage reduced 10%  One-time cost of RPI: $25,786  Annual labor savings of $73,200 plus the savings of not needing to hire and train 2.5 workers

6. Highlights  Wide range of RPI participants  All key people present  Strong support of plant management  Morale in wall department very high

7. Management Commitment  Dedicated director of lean  Permit teams to take time  Invest in the changes  Take workers seriously  Senior manager involvement

8. Going forward  Spread lean company-wide  Management workshop  Lean teams  Plants required to conduct lean activities

9. Lean Symposium

10. Manufactured Housing Research Alliance Jordan Dentz (212) 496-0900 x13 jdentz@research-alliance.org www.mhrahome.org Factory Building Symposium on Lean Production