1. 5S at New Belgium Brewing Companyby
Andrew Sturm
Cellarman
New Belgium Brewing Co.
MBAA-RMD Presentation
.November 2, 2006

2. Introduction 5S Concept 5S Structure Implementing 5S at NBB
Lessons Learned
Background of 5S
Central component of WCM
Western version of a Japanese philosophy of cleaning and organization that emphasizes employee empowerment and involvement to create a world class manufacturing environment

3. 5S Concept
An organized and clean workplace is safe, efficient and productive
There are five keys to the 5S system
Sort, Set in order, Shine, Standardize, Sustain
Some tend to dismiss the 5S concept because of its simplicity, however this concept consistently produces an organized workplace, resulting in
An increase in quality
An increase in productivity
A cleaner workplace which creates a safer workplace
A reduction in required floor space
Simplicity of this concept makes it successful
“Ultimately housekeeping and workplace organization are directly linked to achieving discipline in manufacturing. WCM cannot be achieved without the discipline and culture of 5S in place”

4. 1. Sort (Seiri) (整理) Sort through all materials in work area
Keep only essential items
Everything else is stored or discarded
Sort – (Seiri), The first S focuses on eliminating unnecessary items from the workplace.
An effective visual method to identify these unneeded items is called red tagging.
A red tag is placed on all items not required to complete your job. These items are then moved to a central holding area.
This process is for evaluation of the red tag items.
Occasionally used items are moved to a more organized storage location outside of the work area while unneeded items are discarded.
Sorting is an excellent way to free up valuable floor space and eliminate such things as broken tools, obsolete jigs and fixtures, scrap and excess raw material.
The Sort process also helps prevent the JIC job mentality (Just In Case.)
Unnecessary items often become invisible to the people who are around them every day, so have an outsider take a look.
The sort phase of the 5S program should only be carried out once. After that, unnecessary items should never be brought into the workplace.
The sort phase of NBB’s 5S program was initially carried out by program administrators
This has not been exactly how it has worked at NBB, although it has brought positive and lasting results.
Example: there is still some obsolete I/O in the cellar that was identified in the initial sort phase of the program in 2003

5. Benefits of “Sort” Improved safety Improved communication
Smoother work flow
Improved quality and productivity
When unnecessary items are removed the work area becomes less crowded and easier to work in.
Potential problems are easier to spot
Improved communication between team members working in the same area.
Removal of unnecessary items eliminates visual and verbal barriers between people
Work areas with unnecessary items removed require less space and can be redesigned for improved work and production flow
Quality improves because of improved communication among people in the same work area.
Smaller work areas mean less WIP inventory which hides problems
Less time is wasted looking for items

6. 2. Set in order (Seiton) (整頓)
Tools, equipment, and materials must be systematically arranged for the easiest and most efficient access
There must be a place for everything, and everything must be in its place
Set In Order (Seiton) is the second S and focuses on efficient and effective storage methods.
You must ask yourself these questions:
What do I need to do my job?
Where should I locate this item?
How many of this item do I need?
"A place for everything and everything in its place.“
Arrange items so they are easy to use.
Mark and label the items so they are easy to find and put away
Have a designated place for everything
Store everything close to the worksite
Organize and standardize the way necessary items are stored so that anyone can find and use them
Strategies for effective Set In Order are painting floors, outlining work areas and locations, shadow boards, and modular shelving and cabinets for needed items such as trash cans, brooms, mop and buckets.
As the workspace within the cellar have changed at NBB, we have had to re-evaluate where things belong on the floor

7. Benefits of “Set in Order”
Improved safety
Improved quality
Improved productivity
Organized storage prevents items from being left in areas where they might be a safety hazard
Productivity improves significantly because there is significantly less time spent looking for items
Visible Arrangement Storage

8. Visible Arrangement Storage

9. Visible Arrangement Storage

10. 3. Shine (Seiso) (清掃) Keep the workplace clean as well as neat
Cleaning is a daily activity
At the end of each shift, the work area is cleaned up and everything is restored to its place
Shine: (Seiso) Once you have eliminated the clutter and junk that has been clogging your work areas and identified and located the necessary items, the next step is to thoroughly clean the work area.
Daily follow-up cleaning is necessary in order to sustain this improvement.
Part of the shine strategy is to develop methods and ways of preventing the accumulation of dust, dirt, chips and shavings
In the cellar there are locations in each area for cleaning supplies, cleaning up is easier if you have the necessary items close at hand.
Scheduled cleaning happens on every shift
Co-workers physically inspect and clean each area of the cellar every week

11. Benefits of “Shine” Improved safety Improved team morale and ownership
Improved quality
Reduced equipment downtime
Even safety glasses can’t stop flying dust, dirt, chips or shavings from filthy work areas getting into co-workers eyes
Clean floors reduce the possibility of slipping and falling injuries
Workers take pride in a clean and clutter-free work area and the Shine step will help create ownership in the equipment and facility.
It is very difficult and costly to deliver a clean, high quality product which was produced in a filthy environment
Cellar co-workers notice changes in equipment and facility conditions such as air, oil and coolant leaks, repeat contamination and vibration, broken or fatigued equipment, breakage, and misalignment and can report them to maintenance before they cause production downtime.

12. 4. Standardize (Seiketsu) (清潔)
Allows for control and consistency
Basic standards apply throughout facility
Co-workers understand responsibilities
Housekeeping duties are part of regular work routines
Standardize: (Seiketsu) Once the first three 5S’s have been implemented, you should concentrate on standardizing best practice in your work area.
The idea is to clean up while the task is small – by shift, daily
The 5S initiative cannot be successful without a schedule that becomes part of your facility’s culture
The cellar has used an based calendar which lists out scheduled 5S tasks by shift since 2004
Allow your employees to participate in the development of such standards.
The cellar staff decided together how to accomplish tasks without sacrificing production time

13. 5. Sustain (Shitsuke) (躾)
Sustaining discipline
Maintaining standards
Keeping the facility in safe and efficient order day after day, year after year
Sustain: (Shitsuke) This is by far the most difficult S to implement and achieve.
Human nature is to resist change
The tendency is to return to the status quo and the comfort zone of the "old way" of doing things.
Sustain focuses on defining a new status quo and standard of work place organization.
Sustaining 5S efforts in the cellar has happened because 5S has become a part of cellar work every day. It is talked about at every shift change and there is visible accountability via the task calendar.
If a co-worker is not participating it is easy to identify and address the issue

14. Benefits of “Sustain” Improved morale Increased efficiency
Positive impressions on customers
Once fully implemented, the 5S process can increase moral, create positive impressions on customers, and increase efficiency and organization.
Not only will employees feel better about where they work, the effect on continuous improvement can lead to less waste, better quality and faster lead times

15. Bringing 5S to NBB Create a 5S group of employees 5S education
Set goals
Establish measures for success
A committee of employees from all areas of production came together to roll out the 5S program
There is a 5S administrator for each area of production
The initial sort phase of the program was carried out by program administrators
Program administrators were responsible for educating staff on 5S principles
In the cellar, we held staff meetings dedicated to 5S to get the message out to our co-workers
All cellar co-workers were involved in setting expectations for man hours to be spent per shift on the shine aspect of 5S
The 5S committee meets monthly to review performance and set new goals and measures
As well as setting goals and measures in the 5S committee, area administrators are responsible for pushing the program forward in their area.
In the cellar, maintaining momentum and keeping the 5S message front and center takes daily involvement.
Program administrators hold periodic audits of production areas and report results to their department and the 5S committee
The audit system in the cellar has brought to light many areas in need of improvement.
Comments collected from auditors are the main vehicle for refinement of the cellar 5S program

16. Before and after

17. Before and after

18. Before and after

19. Before and after

20. Before and after

21. Before and after

22. Auditing Quarterly audits of production areas
Managers, cross departmental staff and administrators participate
Administrators set goals based on audit results
Audits are based on a 5 point scale
Main goal of auditing is to see how well we are putting 5S to work
Participation from many areas of production is highly encouraged

23. Sample COF5S audit form.

24. Reporting results
Results are reported to the 5S group and to the rest of production so we can easily see the effects of our work

25. Lessons learned Everyone must be involved Training
Continuous improvement
Pursue perfection
5S implementation rule #1 – Leaders must lead. Everyone must be involved without exception. 5S applies to the office and the shop floor and it “paves the approach for all other improvements which are the long term hopes for a company’s survival
At NBB it has been a challenge to get everyone involved in the 5S program.
Managers who were used to the “old school” way of doing business were reluctant to embrace the changes and their new responsibilities
Co-workers needed to be educated on why the company needed to change and why 5S is central to the company’s success.
Some areas have embraced the 5S concept more than others, and where areas intersect, issues often arise especially with sorting and set in order execution
Make sure that everyone is trained in 5S, understands your vision for the future
Cellar co-workers associated 5S only with cleaning in the beginning, as the program has evolved, emphasis is more on clean and organized.
As NBB’s 5S program has evolved, it is becoming harder to achieve higher audit scores because of the need for continuous improvement
Within the cellar, progress has been in small, continuous improvements.
Continuous improvement applies to all aspects of 5S.
Without continuous improvement, your 5S grade of 5 today may only grade out as a 2 or 3 in the future
Don’t expect perfection at the beginning (ready for inspection by the queen of England)

26. Where do we go from here? 5S becomes a sustained practice for NBB
Examine efficiencies gained from 5S

27. Cellarman – New Belgium Brewing Co.
Thank You
Andrew Sturm
Cellarman – New Belgium Brewing Co.