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

2. Chelsea Modular Homes Marlboro, NY Kenneth Hutchings, Lean/Safety Manager Leveraging Lean

3. Chelsea Modular Homes  Started:1986  Location:Marlboro, NY  Home type:Modular  Price point:Mid to high- end  Design:Extensive customization  Production:3 to 4 floors/day  Market area:Northeast US

4. Spackling: Problem  Value stream mapping identified in framing  Initial RPIs met with limited sustainable successes  Targeted spackling  Poor quality at inspection

5. Spackling: Causes  Lack of cross- departmental coordination and cooperation  Teams not taking responsibility for work quality  Pervasive “not my job” attitude  Process and product issues not addressed

6. RPI process  Form RPI team  Meet half days for a week  Divided time between plant conference room  Conclude with presentation to management  Team members take responsibility > Kenneth Hutchings, lean manager (leader) > Santos Laboy, touch-up crew > Miguel Lora, sidewalls > Randy McGee, mid-line supervisor > Bryon Sharoh, yard supervisor > Dennis Veseley, spackling group leader

7. Changes  Product changes  Process changes  Equipment improvements  New work rules  Standardize work  Organizational changes Lean principles: The “5 why’s,” stop and fix, standardized work

8. Results  Defects/rework cut by 85%  Fewer touch-up workers needed  QC spends less time on drywall  Results visible to entire plant

9. Highlights  No-cost changes  Workers understand production as a system  Improved morale  Lean is forcing Chelsea to confront critical issues  Lean providing a forum for management to converse with workers  Lean tapping into worker commitment to the company

10. Going forward  Regular major RPI events  Frequent smaller 5S events

11. Lean Symposium

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