1. Canadian Collision Industry Forum Mississauga, Ontario January 21, 2006 Process & Innovation Committee

2. Committee Members Ken Friesen, Concours Collision Tony Canade, Assured Automotive Bob Dubreuil, Akzo Nobel Paul McFarlane, The Boyd Group Mark Bonsor, Dupont Wayne Riley, Aviva Canada Neil Anderson, Anderson Consulting Tom Bissonnette, Parr Auto Body

3. PROCESS ENGINEERING Your Business Where Do I Start ? Ken Friesen Process Mapping Tony Canade 7 Types waste Bob DuBreuil 5 s

5. Admin Process Total Days: 32 Steps 42 Value 13 Travel People 1478ft. Product 524ft. Time Total 156min. Non Value 128min. Value 28min.

6. Planning Process Total Days: 12 Steps 54 Value 5 Travel People 4029ft. Product 524ft. Time Total 131min. Non Value 94min. Value 37min.

7. Production Total Days: 5.5 Steps 48 Value 11 Travel People 8173ft Product 1524ft Time Total 684min. Non Value 113min. Value 571min

8. Total Total Days: 19.5 - 32 Steps: 144 Value: 29 Travel People: 13,680ft 2.6 miles Product: 2,577ft.5mile Time Total: 971min. 16.2hrs. Non Value: 335min. 5.6hrs. Value: 636min 10.6hrs

9. Waste - Muda Muda means Waste – specifically any human activity which absorbs resources but creates no value to the Customer (insurer, vehicle owner)

10. 7 Types of Waste Rework – product or admin. Overproduction –of goods not needed by next step Inventories – goods waiting to start or further processing

11. 7 Types of Waste People Movement – office/shop Product Movement – office/shop Process Time – goods /admin. Waiting/Sleep Time

12. Based on Japanese words that begin with S. 5S philosophy focuses on: Work place organization Standard Operating Procedures What is 5 S?

13. Simplifies the work environment Reduces waste Reduces non-value activity Improves quality efficiency Improves workplace safety What is 5 S?

14. Sorting (Seiri) Set in Order (Seiton) Scrubbing Clean (Seiso) Standardizing (Seiketsu) Sustain (Shitsuke ) What is 5 S?

15. Why 5S? Eliminate waste from uncontrolled processes Improve delivery consistency Gain control of equipment, material, and inventory Improve quality Improve safety Improve consistency

16. # 1 – Sorting Process to eliminate unnecessary items from the workplace Tag and evaluate need Move occasional use items to storage location Discard unneeded items (scrap etc) Get rid of J.I.C. mentality

17. Systematic Sorting & Organization Eliminate space taken up by unneeded items-huge toolboxes, benches, scrap parts Remove outdated papers and files Reduce cabinets, shelving, lockers that have no current use Eliminate outdated posters, wall boards, metrics, slogans, banners

18. # 2 - Set in Order A place for everything and everything in its place Equipment – shop and office Tools Cabinets and files Brooms and trash cans!!

19. Sort Visual Colour System Work areas (mark on the floor) Aisle ways Equipment locations Storage locations

20. #3 - Scrubbing Clean The cleaner the better Clean areas where red tagged items were removed Remove dirt, oil, scrap, and garbage Look at lighting Clean on a daily basis Audit the cleaning process Improve equipment maintenance

21. Scrubbing Clean Clean aisles, walkways, floors, machines, desks Assign cleaning responsibilities Create target areas: equipment, floors, inventories Cleaning checklists Correct deficiencies Cleaning is a team effort Correct root cause of messy areas

22. # 4 - Standardize Standard Operating Procedures Implement SOPs in all areas Involve staff in developing SOPs Involve vendors Involve consultants Document all SOPS

23. Standardize Step 1: Planning Who does what and when Step 2: Allocation Assign resources to tasks

24. Standardize Step 3: Act Train all employees Step 4: Implement Step 5: Verify Ensure effectiveness

25. # 5 - Sustain Most difficult of the 5 S Employees tend to return to comfort zone Need to monitor and influence until new culture becomes the status quo Takes time!!

26. Benefits of 5S Increased efficiency Increased productivity Increased profitability Improved morale A nicer place to work

27. Clean is Lean!

28. THANK YOU FOR YOUR TIME!! Please join us in our Breakout Session this Afternoon!!