1. P09712 Commercial Roll Line Shrink Reduction Evan DeCotis Levi Stuck Ryan Dennison Joseph Fitzery Cinthia Sanchez

2. Financial Benefit Annual Defect Cost = $321,000 40% Defect Reduction $129,000 Annual Savings!

3. Project Review Agenda  Project Overview  Customer Needs and Project Specifications  Concept Development  Systems Level and Detailed Design  Risk Mitigation  MSDII Plan  Financial Benefits

4. High Priority Customer Needs ImportanceCustomer Need (Description)Comments / Status Eliminate Shrink/Waste 9Defects5-10% current defect rate 9 Standardization of Process Currently there is minimal standardization at the bakery 9 Minimal CostDo not exceed $5,000 9=Very Important, 3=Important, 1=Somewhat Important *Simplified version - only high importance items are shown

5. Engineering Specifications Importance Specification (Description) Unit of Measure Marginal Value Ideal Value Comments / Status 9Defect rate reduction%> 20%> 60% 9 Defect occurrence area categorization #>= 2>= 5 K-roll, Proof Box, Oven, Conveyor, Bagging 9Defects type categorization#>= 4>= 6 Rolls not grouped, fingerprints in dough, dry spots, etc. 9 Standard work procedures can be learned in X minutes Minutes< 45< 15 Minimal time lost due to any necessary retraining 3Process time variationMinute range10 to 200 to 10 3Visual aid interpretationSeconds<5<1 Time will reduce from exposure 1No capital investmentUSD<= $5,000<= $1,000 9=Very Important, 3=Important,1=Somewhat Important

6. Current State Value Stream Map

7. Cause and Effect DEFECTS PEOPLE Daily Bias (Inconsistency) Lack of Thoroughness Lack of United Goals Material Handling INFORMATION Isolated Information Often does not Leave the Station Lack of Formal Training Lack of Formalized Data ENVIRONMENT Noise Level Variance in Humidity Variance in Temperature PROCESSES Line Imbalance Standard Work High Variation Reactive Vs. Proactive MACHINESMATERIAL Outdated Adjustability (Analog vs. Digital) Inconsistent Lack of Fine Tuning External Contaminants Inconsistent Dough Mixtures Upgradable

8. Data Collection

10. 70%

11. Current State Value Stream Map

12. K-Roll Process Improvement  Proposal  Run the K-rolls at a rate equal to, or less than the rate of the oven at all times  Visible Problems  Queuing before and after Proof Box  Inconsistent bake times and proof times  Ideal Proof Box Time – 50 minutes  One K-roll Running – 55 min proof with 3% - 5% defective  Two K-rolls Running – 75 min proof with 10% - 12% defective

13. Line Imbalance # Rolls per Hr Roll Production vs. Oven Capacity K-Roll 1 K-Roll 2 K-Roll OutputOven Capacity

14. Implementation  Develop a standardized K-roll procedure  Conduct training on procedure use  Develop test plan to verify improvements  *Establish performance management*  Impact  No queues before or after Proof Box  30% estimated reduction in defects

15. Proof Box Process Improvement  Proposal  Standardized rack loading and unloading procedure  Track times of racks through the Proof Box  Visible Problems  Inconsistent rack loading/unloading  Uncooked buns left outside of proof box for long periods of time  No current standardized procedures

16. Proof Box Process Improvement  Process standardization  Time tracking  Optimal batch sizes  Reduced non-controlled environment time

17. Implementation  Develop a standardized Proof Box procedure  Conduct training on procedure use  Develop test plan to verify improvements  *Establish performance management*  Impact  No queues during oven loading  10% estimated reduction in defects  Additional Benefits  Mindset of standardized work will be instilled for future improvements

18. Quality Control Process Improvement  Proposal  Improve defect sorting accuracy by creating visual aids  Create a QC training manual for all employees  Visible Problems  Lack of consistency in defect classification  Some defects get through QC and sent to customers  Some good products are rejected as defects

19. Quality Control Process Improvement

20. Implementation  Develop a standardized QC procedure  Construct two laminated “on floor” poster size visual aid stands  Construct a fully usable training manual  Develop test plan to verify improvements in sorting  *Establish performance management*  Impact  Clarified/unified defect sorting and categorization  Reduction in type I and type II errors

22. Risk Mitigation Proc. #RiskSeverityProbabilityMitigation 1,2No employee buy-in97 Employee involvement, feedback, and performance management 1,2 No long-term consistency and commitment 95 In house project responsibility, performance management 1,2Implementation delay93Adequate Planning 2 Workers may not use visual aids 97Performance management Importance: 9=Very Important, 3=Important, 1=Somewhat Important *Simplified Version, only high severity risks shown.

23. Financial Benefit 40% of total defect costs = $129,000

24. Questions or comments?

25. Appendix I: Data Collection  Hamburger  Hotdog