1. Quick Changeover/SMED 3.1.3 Patrick Bye, President Dan Brook, General Manager 11/16/09

2. EDI - Located in Rockford, Illinois Since 1980 22 employees CNC machine shop driven by Lean Thinking Engaged Member of SEA Multiple industries Responsive customer service

3. Initial Process – Before SEA Engagement Identified need and set up A3 ( Kaizen project tool see attached Excel sheet)..\A3 blank.xls..\A3 blank.xls Pulled team together for basic training. Analyzed data, families, volumes, set up and machining times. Identified External and Internal activities. Created master set up template ( see attached Excel file)..\set-up activity sheet.xls..\set-up activity sheet.xls Tracked using A3.

4. How can you do more set ups and not cost more? Part A Set up time = 8 hrs Part A = 2 hrs Part B = 2 hrs Part C = 2 hrs Part D = 2 hrs Apply Lean and quick changeover OLD. We can do 1 set up in 8 hrs NOW. We can do 4 set ups in 8 hrs Did our costs go up with doing 4 x the number of set ups? Example of Basic Training Material

5. Old State  2 Customers, 3 part families, 12 part variations.  Build 3 or more months depending on volumes (4 to 7 turns per year).  Order to cash 47 days best case for first pieces and 90 – 120 days for the last pieces. Multiplied by 12 parts!  Changeover times 4 – 6 + + hours? New/Current State  2 Customers, 3 part families, 12 part variations and increased volumes.  Build 1 week’s volume every week based on customer Kanban pull (40 T per year).  Order to cash 35 days every time.  Changeover times less than 2 hrs and more to come.  Enabler for increased setups. Results: Our First Cell/SMED Project

6. That was a success story for us, however we stalled… We have the standard set up sheets in each cell. We had an external trainer train the shop on quick change using simulations. We picked part number setups, videotaped and tried to follow thru but parts have not repeated. And, our changeover times in the rest of the plant have not improved at the same level. What we did wrong… We did not target the new setups based on the value streams ie they were the current pet peeve/problem, not the most important problem.

7. Which spigot needs to be fully open first? Credit to Beth’s slides for the modified graphic/idea! Op 20Op 30Op 40 60 min set up 60 min total process time 90 min set up 10 min total process time 60 min set up 40 min total process time

8. Our Renewed Focus Using SEA LES… Use the value stream to target the best opportunity target cell. Use the value stream and $ volume to determine best part/family within the target cell to focus on. Conduct Kaizen/SMED event and document standard work/training. Utilize the Kaizen/SMED/6S/Training Calendar. Go Back to the Value stream and repeat! If you pick a process or changeover that doesn’t count ie not picked using the value stream it ultimately will die and not help in the long run!

9. Thank You! Please visit our website at: www.energy-dynamics-inc.com/ Pat Bye, President patbye@energy-dynamics-inc.com 815-877-1410