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

2. R-Anell Housing Group Denver, NC Clifford Robbins, Lean Manufacturing Engineer Building a Lean Culture

3. R-Anell Housing  Started:1972  Location:Denver, NC  Home type:Modular  Price point:Moderate to high-end  Design:Substantial customization  Production:6 floors/day  Market area:Southeast US

4. R-Anell’s Kaizen (RPI) Process 1.Gather data 2.Train associates 3.Map value stream 4.Develop revised layout 5.Implement changes 6.Evaluate production and refine 7.Report to executive team and celebrate 8.Document process and create job instructions

5. R-Anell’s Kaizen (RPI) Process 1.Gather data 2.Train associates 3.Map value stream 4.Develop revised layout 5.Implement changes 6.Evaluate production and refine 7.Report to executive team and celebrate 8.Document process and create job instructions

6. Gather Data  Make spaghetti charts  Record procedures  Document current layout, distances and inventory Travel DistancesFeet Sheathing cut (per occurrence) 341 Load gable walls on carrier (per occurrence) 158 Move dormer side walls to assemble dormer (per occurrence) 4 Move dormer window walls to assemble dormer (per occurrence) 35 Dormer build (per occurrence) 282 Access dormer miter saw and lumber (per week) 3,420 Move cut lumber (per week) 2,400 Small Overhead Cabinets Procedure Feet walked Check schedule/print for next cabinet 57 Step to back panel storage – obtain panel – carry to panel saw – place on saw 62 Adjust saw – cut length – put aside excess material to be used or to waste – turn cut piece 9 Adjust saw – cut width – put aside excess material to be used or to waste – carry to wall cabinet build table 82 Step to panel storage – obtain panel – carry to saw and position onto saw 85 Adjust saw – cut sides, top, and bottom pieces – put aside excess material to be used or to waste – obtain pieces and carry to table 66 Lay out side panels – obtain bottle of glue – apply glue to ends 0 Obtain top – position to side – obtain back – position to cabinet – obtain bottom – position to side 0 Stack multiple cabinets as required 0 Step – obtain 4 clamps – return to table – position one clamp to each corner 26 Set cabinet aside for glue to set 0 Total Feet Walked387

7. R-Anell’s Kaizen (RPI) Process 1.Gather data 2.Train associates 3.Map value stream 4.Develop revised layout 5.Implement changes 6.Evaluate production and refine 7.Report to executive team and celebrate 8.Document process and create job instructions

8. Train Associates: Pipe Factory  Simulate a production line  Teach lean concepts in a learning-by-doing method  Successive rounds demonstrate the value of lean techniques

9. R-Anell’s Kaizen (RPI) Process 1.Gather data 2.Train associates 3.Map value stream 4.Develop revised layout 5.Implement changes 6.Evaluate production and refine 7.Report to executive team and celebrate 8.Document process and create job instructions

10. Map value stream  Area associates develop understanding of production as a system  Learn how lean techniques apply to their production environment

11. R-Anell’s Kaizen (RPI) process 1.Gather data 2.Train associates 3.Map value stream 4.Develop revised layout 5.Implement changes 6.Evaluate production and refine 7.Report to executive team and celebrate 8.Document process and create job instructions

12. Develop Revised Layout  Leverage area associates knowledge  Reinforce sense of ownership

13. R-Anell’s Kaizen (RPI) Process 1.Gather data 2.Train associates 3.Map value stream 4.Develop revised layout 5.Implement changes 6.Evaluate production and refine 7.Report to executive team and celebrate 8.Document process and create job instructions

14. Report and Celebrate  Describe effort  Celebrate and broadcast success  Document changes

15. Identifying the Target: Dormer Area  Production not being met  Consistently required overtime  Additional team member requested  Other considerations › First major event › Good supervisor › Off-line operation

16. Goal: Productivity and Space  Excessive walking  Poor material flow  Batching materials  Excessive inventory  Poor equipment positioning  No table saw

17. RPI Team >Charles Jervais, director of process development >Clifford Robbins, lean engineer >Carlos Soto, safety manager >Gary Lynn, supervisor >Jorge Jordan, team leader >Luis Aleman >Pedro Aleman >Stanley Axe >Michael Childers >Miguel Davia >Joseph Flowers >Ricky Gibbs >Steve McEntire >Silverio Martinez

18. Then  Layout before RPI Now  Layout after RPI Logical flow puts products where they need to be Extended crisscrossing flow and bloated work areas

19. Results  Provided 2,400 sf for building large gable dormers  Reduced material inventory  Value of manufacturing space freed up: $108,000  Annual labor savings: $27,300 IssueThenNowChange Floor area 6,988 sf4,726 sf Reduced 2,262 sf Travel distances 13,0272,848 Reduced 2 miles per day Employees 98 Reduced by 1

20. Highlights  Associates speak directly to management  Deep respect for associates efforts  Substantial management commitment  Substantial investment in associate time

21. Going forward  Accelerated lean training schedule  Concentrate on problem areas identified by the Value Stream Map  Provide lean support for move  Include lean training for new associates during orientation

22. Lean Symposium

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