1. Becoming a global leader takes…...
 Vision
 ISO Certification
 A Continuous Improvement Strategy
 Teamwork
 A Marketing & $ales Strategy
GLOBAL PRE-EMINENT MANUFACTURER

2. World Class Manufacturing Strategy
 Leadership
 Product Cells
 Empowerment
 Just In Time
 Material Requirements Planning
 Total Quality Management
 Standardization
GLOBAL PRE-EMINENT MANUFACTURER

3. World Class Manufacturing…what is it?
 It could be considered theIt could be considered the ““Process RevolutionProcess Revolution””..
ItIt’’s a series of management disciplines thats a series of management disciplines that
change the way a company develops andchange the way a company develops and
manufactures products, and how every singlemanufactures products, and how every single
process is conducted. Through aggressiveprocess is conducted. Through aggressive
implementation, it can increase shareholderimplementation, it can increase shareholder
returns as much as 500% in 5 to 7 years.returns as much as 500% in 5 to 7 years.
- George David, CEO United Technologies

4. World Class Manufacturing
 CHARACTERISTICS:
Flexibility High
Inventories Small
Teamwork High
Leadership
Communicators/
Visionaries Business
Known by All Measurements

5. Leadership
MANAGING
Reactive
Fighting Fires
Same Paths
Lacks Empathy
Center of Circle
No Creative Risk
Taking
LEADING
Proactive
Visionary
Blazes New Paths
Empathetic
Communicator
Risk Taker

6. Leadership
 Dramatic improvement in Communication
 More focused discussion between Teams and their Leaders
 Quality time spent on the shop floor
 Focus is on internal and external Customers
 Team building at all levels
 Everyone is clear about the “Mission” and their role
 Continuous improvement through problem solving / goal
setting
 Never enough communications!!!
MANAGEMENT WORKS FOR THE PEOPLEMANAGEMENT WORKS FOR THE PEOPLE

7. Communication Plan
 Regular shop walks
 Monthly All Employee Meetings
 Regular one-on-ones at all levels
 Monthly Business Reviews
 Daily shop toolbox meetings
 Everyone on a team: EHS, quality, cost,
process improvement, etc...

8. Product Cell Implementation
 Flow and string the current process sequence, with
everyone involved in decision making process
 Create a new Layout that puts the machines and
process steps as close as physically possible
 Rearrange the area with “speed”

9. Product Cells….what are they?
 The layout of equipment to optimize material flow
 Dedicated areas, equipment, people for each product
line/family
 Parts move from one activity to another within a
Cell
 Smaller, tighter areas reduce wasted space allowing
for additional equipment as business grows
 The optimum is being 100% self supported
 Cross train everyone

10. Product Cells….what will they do?
 Get you much quicker feedback on quality
 Significantly reduce your cycle time and TAT
 Reduce WIP (work in process)
 Create ownership, teamwork, accountability,
while morale and responsibilities improve
 People become more flexible
 Drives better customer focus
 Increase product market share

11. Cells
Process Product

12. Empowerment
 Everyone must understand key metrics at the Cell
level
 Problem prevention = Problem solving where it
counts
 Pro-active Team members: cost, quality, speed,
delivery, cell issues, etc.......
 Management works for the people and supports
them

13. Empowerment…what is it?
 Decisions and actions by everyone
 Teamwork Vs. I’m the Boss syndrome
 Responsibility & accountability
 Manager Role: Coach, Teach, Train
 Increasing power of all team members
 Replace non-thinking workers with thinking team
members
 Focus on: business indicators, 10-80-10, positives
 Problem solving meetings

14. Empowerment…what will it do?
 Continuous improvement:30%-50% in the first year alone
 Allow for increased flexibility
 Create high morale
 Team members wont be waiting for the “Boss” to solve
problems and/or give them direction
 Builds a cohesive team
 Problem solving where it counts
 Problem prevention by having pro-active team members
 Leadership development

15. Traditional non Vs. Empowered thinking
thinking team members
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Give a person a fish; it feeds them for a day.
Teach them how to fish ---- feed them for a lifetime!

16. Empowerment Principles
 Power through responsibility (clearly defined)
 Power through authority (equal to their responsibility)
 Power through standards of excellence (high yet realistic)
 Power through training and development (ongoing)
 Power through knowledge and information (share & seek)
 Power through feedback (written and verbal)
 Power through recognition (be sincere)
 Power through trust (trust model)
 Power through respect (direction to succeed)

17. Empowerment is giving people the authority and the accountability to successfully
carry out their responsibilities.
Empowerment is one of the most difficult skills for a Leader to develop because it
means allowing others to try and to fail. When they fail it means supporting them
through their failure and helping them to achieve success.
NOTE: Empowerment is not delegation, it is support management.
Empowerment

18. Power Through Responsibility
A Leader empowers others by giving them a clear understanding of the responsibilities of
their job. Job responsibilities define the work people must do in order to achieve success.
A Leader has more power to achieve his/her own objectives when the people who work for them
know what they must do to achieve success.
o Clearly define the responsibilities of the job
o Give people a sense of purpose by showing them how their job responsibilities relate
to the department goals and objectives.
o Communicate and reinforce the responsibilities on a regular basis
o Distinguish between responsibilities and tasks
o Help people feel a sense of pride and ownership in the responsibilities that have been
assigned to them
o Avoid duplication of responsibilities
o Prioritize responsibilities as plans change
o Help team members understand one another’s responsibilities

19. Power Through Authority
A Leader empowers others by giving them authority equal to the responsibility assigned to them.
People can fulfill the responsibilities of their jobs only to the extent that they have been given the
authority to do so. A Leader has more power to achieve his own objectives when the people who
work for him/her have the authority to fulfill their responsibilities.
o Always delegate authority equal to the responsibility
o Consider the competence of the person when delegating authority
o Tell the person before he/she is hired how much responsibility he/she will have
o When the person is hired, review the responsibilities of the job and corresponding authority
levels
o If the job description doesn’t adequately define the authority levels, give the person a more
detailed description
o When delegating large tasks, be sure to clarify the boundaries of the person’s authority
o Communicate the person’s authority levels to the people he/she will be working with as well as
to that person
o Use authority as a means to help the person grow
o When increasing authority, build pride by explaining that the authority granted is reward for
past performance
o Establish controls to ensure that the person is exercising authority properly

20. Power Through Standards Of
Excellence
A Leader empowers others by setting standards of excellence that enable them to reach
their full potential. When asked to stretch beyond their self-imposed limits, people
discover powers they never knew they had. A Leader has more power to achieve his/her own
objectives when the people who work for them work to their full capacity.
o Make sure standards are high yet realistic
o Set standards for quantity, quality, cost, and time for each job
o Communicate and reinforce the company, department and job standards on a
regular basis
o Motivate people to achieve excellence
o Set the example by meeting high standards yourself
o When other departments are negligent in meeting standards of excellence, take
steps to minimize the adverse effects on your people

21. Power Through Training And Development
A Leader empowers others by providing them with the skill and confidence they need
to meet the standards of excellence. People must be able to meet the standards if they
are to have the power to achieve success. A Leader has more power to achieve his/her own
objectives when the people who work for them are able to meet the job standards.
o Motivate people to learn by breaking down their resistance to change
o Make training a priority
o Work with the training department in developing an integrated training program
that will meet the training needs of your people
o Make sure that all training provides people with the skill to do the job and/or the
will to do the job
o Make training an ongoing process by utilizing a combination of training methods
o If you wish to serve as a mentor, make sure you select the appropriate person and
o Use training as a way to build self-esteem
do the things that make for a successful mentor relationship

22. Power Through Knowledge and Information
A Leader empowers others by providing them with the knowledge and information they need
to make good, sound business decisions. People must be able to make sound business decisions
if they are to achieve success. A Leader has more power to achieve his/her own objectives when
the people who work for them are able to make good decisions.
o Don’t guard and protect valuable information for fear that you will lose some of your power.
o Try to anticipate the information needs of your people
o Encourage people to seek out information on their own
o If there are company-wide communication problems that affect your people, try to work across
organizational lines to correct them
o Communicate only necessary information
o Provide information on company and department goals and objectives, company and department
plans, information from other areas, progress updates, information on the industry, information
on the respective disciplines, upcoming changes and reasons to be proud
o Use the appropriate method for communicating

23. Power Through Feedback
A Leader empowers others by giving them feedback on their performance. If people are to have
the power to succeed they must know when and how they need to improve their performance. A
Leader has more power to achieve his/her own objectives when the people who work for him/her
understand the changes they must make in their performance.
o Counsel your people on a frequent basis
o Give each person a written performance appraisal at least once a year
o When you give feedback through memos and letters, make sure they are personalized and sent
close to the time of the event or accomplishment
o Always tailor the feedback to the person. Take the needs and personality of the person into
consideration.
o Use staff (team) meetings as opportunities to give feedback to the group and individuals
o When people go beyond the call of duty and accomplish something truly outstanding,
arrange for acknowledgment from someone high in the organizational structure
o Don’t give to much feedback
o Do not neglect the high achiever because he/she is able to meet the standards on their own
o Provide feedback that will help them develop beyond the current job.

24. Power Through Recognition
A Leader empowers others by giving them recognition that enhances their self-esteem and
motivates them to continue to do their best work. A person’s power to achieve success is
dependent upon his/her belief in themselves and their desire to do consistently excellent work. A Leader
has more power to achieve his/her own objectives when the people who work for them are confident
and motivated to do their best work.
o Make people feel like winners
o Recognize them as members of a group as well as individuals
o Make sure the recognition is appropriate for the achievement
o Give recognition in a way that conveys sincere appreciation
o Be sure the recognition fully acknowledges the people’s accomplishments
o Recognize the people as well as the achievements
o Make sure the recognition is equal to the recognition you have given others for
similar achievements
o Tailor recognition to the person
o Make sure the recognition is timely

25. Power Through Trust
A Leader empowers others by trusting in them, which helps them believe in themselves.
The more people believe in themselves, the more power they have to achieve success. A Leader
has more power to achieve his/her own objectives when the people who work for them believe in
themselves.
o Distinguish between trust in people’s characters and trust in their abilities
o Let people know that trust must be earned
o Lay the foundation for trusting relationships by believing that people are basically good,
that they genuinely want to do a good job
o Remember that feelings and actions speak louder than words when you try to convey
trust to others
o Demonstrate trust by delegating important tasks and corresponding authority
o Give people freedom - don’t hover over them
o Give people the benefit of the doubt
o Allow people to interface with “higher-ups”
o When trust is violated, determine whether it was an innocent mistake or due to wrong
motives, and then take appropriate action

26. Power Through Respect
A Leader empowers others by treating them with dignity and respect. When people are
treated with respect they have a greater motivation to perform. The motivation to perform
must be present if people are to have the power to succeed. The Leader has more power
to achieve his/her own objectives when the people who work for his/her are motivated to achieve
success.
o Provide them with the necessary direction
o Give them adequate resources
o Provide them the info they need
o Respect their time
o Don’t usurp their authority
o Look for ways to make their job easier
o Tune into their needs
o Listen to them
o Provide them with feedback
o Stand up for them
o Respect their privacy
o Give them the right to express their feelings
o Acknowledge their hardships
o Respect their personal obligations

27. TRUSTTRUST
OpennessOpenness
> Being truthful >Listening> Being truthful >Listening
> Believing > Admitting> Believing > Admitting
mistakesmistakes
CredibilityCredibility
>> You can be depended on by other team membersYou can be depended on by other team members
> Everyone is treated with fairness and respect> Everyone is treated with fairness and respect
Making and Keeping AgreementsMaking and Keeping Agreements
> No fuzzy agreements> No fuzzy agreements
> Only make agreements you can keep> Only make agreements you can keep
> Immediately clean up any broken agreements> Immediately clean up any broken agreements
> If you can> If you can’t keep an agreement, give notice right away’t keep an agreement, give notice right away
Trust ModelTrust Model
Trust is something you earn, not something thatTrust is something you earn, not something that’s handed to you’s handed to you

28. Just in Time (J.I.T.)
 FIFO; first in first out
 Produce what you need - not what you can
 Lot size reduction
 Simplified scheduling
 Kanban (pull) systems
 Level loading
 Shortened changeovers

29. J.I.T..….what is it?
 It refers to the timing of production flow;
goods are delivered to the manufacturing
lines just in time to be used, just in the
immediately needed quantities, and just to
the production processes that need them.

30. J.I.T…..what will it do?
 Improve quality
 Allow for a predictable schedule
 Reduce W.I.P.
 Better customer focus
 Improve productivity
 Build teamwork
 Improve machine capacity
 Reduce overtime

31. M.R.P. - Line of Balance
Material Requirement Planning
 Scheduling / Planning process for weekly &
monthly output; tracked daily!
 A real time visual scheduling plan
 Education of constraint scheduling and capacity
analysis
 A master scheduling tool for loading the shop to
service the Customer

32. M.R.P. - Line of Balance
What is it?
 A way to meet Customer needs
 A way to adjust the factory to the Customer
 Flexible capacity
 A way to focus on constraints
 A Daily Heart rate (TAKT Time)
 Scheduling / tracking / evaluation by everyone

33. M.R.P. - Line of Balance
What will it do?
 Manage capacity
 Allow on time delivery
 Validate schedules
 Integrated plans…Line of Balance, Pull (JIT)
 Shared responsibility and accountability
 Put simple systems on the shop floor

34. T.Q.M.
Total Quality Management
 Certified processes
 Total Predictive Maintenance
 Continuous improvement
 Vendor partnerships
 Employees identify and resolve problems
 Stop production problems at the point of
generation…….never pass on defects
 Making quality everyone's problem

35. T.Q.M. ………...what is it?
 Focus on the process through reduction in
variability
 Quality Control Process Charts (process mapping)
 Employee involvement in the decision making
process
 Statistical probability and analysis
 Mistake proofing
 Visual factory

36. T.Q.M. ……..what will it do?
 Improved quality internally and externally
 Improve customer service
 Improve morale
 Improve profitability
 Increase market share
 Eliminate non-value added …….rework, scrap,
setups, delays, material movement, Queue,
equipment down time, material shortages

37. Standardization
 There are no “Sacred Cows”
 KISS…..Keep It Structured Simple
 Part Families
 Structure and focus on the process
 Have a best for all mentality

38. Standardization…...what is it?
 An approach to get control
 Making everything generic
 Document simplification
 Design concepts that are best for everyone
 Like tools, machines and processes
 Product families
 Process families

39. Standardization….what will it do?
 Improve quality and predictability
 Allow for high flexibility
 Put speed into processes
 Reduce mistakes
 Lower Engineering costs
 Focus where it counts

40. Vane Business UnitVane Business Unit
1994 1995 1996 1997
$129
$134
$96
$84
$0
$20
$40
$60
$80
$100
$120
$140
1994 1995 1996 1997
Vane Production
Averaged 190K hours / yearAveraged 190K hours / year
CPHCPH
Spent$1.2Mforcellmoves
28%yearoveryear
improvement
12%yearoveryear
improvement

41. Blade Business UnitBlade Business Unit
1994 1995 1996 1997
$109 $106
$78
$74
$0
$20
$40
$60
$80
$100
$120
1994 1995 1996 1997
Blade Production
Averaged 130K hours / yearAveraged 130K hours / year
CPHCPH
Spent$300Kforcellmoves
26%yearoveryear
improvement
3%yearoveryear
improvement
5%yearoveryear
improvement

42. General Machining Business Unit
Averaged 150K hours / yearAveraged 150K hours / year
CPSHCPSH
1997 1998 1999 2000
spent$1.2MforCellmoves
19%yearover
yearsavings