5. Because…
• Chicopee continues to be the golf ball manufacturing center for the
corporation.
• Golf Digest Equipment Issue, January 2008, recognized Callaway golf balls
as leading the industry
• Customer returns decreased by 84%
• 14% improvement in orders shipped on time and complete
• Scheduling points were reduced from 13 to 2 through the application of a
visual pull system
• Lead time for end to end production went from a typical 21 days to 5 days
• WIP inventory turns improved 68% from 2005
• Total inventory turns improved 26% from 2005
• Finished goods inventory was reduced by $10,000,000
• Packaging inventory was reduced approximately 40%
• Potential loss from obsolescence of packaging is down by 50%
• Order lead times for Custom Ball improved 44%
6. Because…
• 33% of production space opened up as a direct result of lower WIP allowing
other growth opportunities. One of these was the transfer of custom club to
Chicopee from Carlsbad.
• Custom ball customer service level went from 57% in 2006 to 92% in 2007,
an increase of 38%
• Premium freight charges were reduced by 28%
• Employee grievances are down 42%, with payout dropping from $15,010 in
2006 to $876 in 2007, a 92% reduction
• All employees have received at least 12 hours of training in lean concepts
and methods
• Accidents are down 23.5% resulting in a $400,000 savings in workers
compensation costs
• Incident Rate was reduced by 2.9%
• Achieved a 10.1 ton reduction in hazardous solid waste and a 141 ton
reduction of non-hazardous solid waste
• Greenhouse gas emissions were reduced by 1,547 metric tons
7. Because…
• Average Product Cost were reduced by 8%
• Cost savings from waste identification and elimination was $3,000,000 in
2006 and increased to $9,300,000 in 2007
• Inventory accuracy went from 68% in 2006 to 99.7% in 2007, directly
attributable to the visual pull system and inventory reduction
• Quality Levels are at 98.7%
• The entire plant received the Callaway ELY Award, which is bestowed on
“individuals” in recognition of outstanding achievement and contribution to
corporate goals. This recognition is typically given to individuals, however
because the entire Chicopee team is involved in the transformation, the
plant as a whole was given the 2007 award.
8. Excuses For Not Doing Lean
• We’ve never done it before
• No one in our industry is doing it
• We tried it before and it didn’t work
• We are different
• It’s not my job
• Yes, but…
• We’re doing all right as it is
• We don’t have the time
• We don’t have enough people
• ……more and more…
9. What We Did !
Businesses Transformation Timeline
10. What We Did !
Businesses Transformation Timeline
• 2003 March Kickoff the first Kaizen Events
• 2004 July Kickoff SIX SIGMA Greenbelt Projects
• 2005 May Launch 100% Employee Involvement
Continuous Improvement Training
• 2006 Convert Push to Pull system
• 2007 Custom Quick Turnaround, Idea System
• 2008 Goal World-class “BEST Practices” Manufacturing
Learning by Doing
Everybody Everyday
11. What We Use ….
• Select The Right People
Business Vision Alignment
• Policy Deployment Identify Improvement Opportunities
• Value Stream Mapping
• 5S
• Standard Work
• Visual Pull 100% employee involvement
• Set-up Reduction Everybody, everyday
• Poka-Yoke
• Visual Controls
Process Variation Reduction
• Six Sigma
DMAIC problem solving thinking
• More….
12. Policy Deployment
Hoshin = goals Kanri=means to achieve those goals
Top-Flite X-type Matrix 2005-6
x x x x x x x x x xxo x x
Reduce all changeover times by half.
x x x x x x x x x xxo x x x x x x
Establish visual pace and problem mechanisms
x x x x x x x x x x xox x x o
Introduce pull system for packaging and p-card.
x x x x x xxx xxo
Reduce environmental emissions to state permit.
x x x x x xxx xox x
Reduce energy usage through conservation.
x x x x x x x x xxox x
Implement voluntary protection program.
x x x x x xx x ox
Work with supplier for improved delivery costs
x x x x x x x x x x oxx x x xxxxxxx
End to end pilot for pull system.
x x x x x x x x x x x oxx x x x xxx x
Standardized work for operations and conveyance.
x x x x x x x x x x x xxx xx o x
Selected 6 sigma projects to reduce scrap/rework.
x x x x x x x x x x x x o
Increase machine uptime for selected equipment.
x x x x x x x x x x x x xxx x oxx xxx
Improve process/prod development
x x x x x x x x x x x xxx ox xxxxxxx
Train for 7 Wastes and Best Practices
Reduce overtime costs by half by 1/07
Reduce packaging costs by 10% by 8/06
Reduce rubber costs (total costs) by 1%
Reduce scrap by 50%.
Reduce P-Card Costs by half.
Reduce utility costs by 10%.
Reduce Freight Cost by 25%.
Cut Finished Goods Inventory by 33%.
Reduce WIP by 50%.
Reduce Raw Materials by 50%.
Reduce non-hazardous solid waste by 141 tons.
Reduce hazardous solid waste by 10.1 tons.
Reduce emission by 5%.
Each existing cell producing 800 dz/day by 7/31/05
On time in full to 90% or better.
Reduce lost time by 50%
Keep Golf-Ball Manufacturing in Chicopee
Improvement
Reduce costs by $10 Million per year
Regain 5% Market Share Per Year
Priorities
Manufacturing
Supply Chain
Engineering
Human Resources
Finance
R&D
Facilities
EHS
Distribution
Quality
Sales and Marketing
Maintenance/Tool Room
Measurements
Objectives
Targets
Material
Labor 0.2 3.0 2.0 2.0
Implementation Section
Labor 1.0 2.2 0.3 0.7
TOP FLITE
Overhead
Overhead 0.7 0.6 0.1 0.1 0.1 0.1
Add'l Revenue
X-Matrix
3.0 1.0
Developed on June 2, 2005
Millions
13. Value Stream Flow: The Past…2003.
What a mess!
60 %
Primed
Balls
40
%
50%
FIF
O
15. Identifies Improvement Through Mapping
Top-Flite Value Stream Improvement Project
** all project due on Oct 2007
Team Members /
Measures
Project- in order of priority Champion May June July Aug Sept
Resources
Current Target
Do It Again!
Omega and Avenger
Value Eng. Dept, Development, Development, Development,
production ready by
New Products Vince S. Howard, Dan Fleck, EJ, Product and Product and Product and Rec Equip Install Equip
11/1/07, at target
Frank Lopes Process Process Process
cost
45% uptime and 90% uptime John Shaw, Mike K., Training and
85% uptime by Complete by
Packaging output Changeover up to Changeover < 10 Mike N/Paul T/Val Maintenance, Andrew, implement Std.
6/1 9/1
45 minutes minutes Supervisors, Tech work
Howard, Rich S., Rich
90% uptime H., Mike M.,
75% uptime and Complete by
Finishing Output Changeover Kevin S. Dev plan Measure Implement
Maintenance,
changeover ?? 9/30
reduced by 50% Supervisors, Tech, John
S.
Implement
Mark W., Mark L., Dave Reduce by Additional
consignment
Reduction in Raw Materials $6.4/30.8 days $4m/20 days Dan Gomez/Jude P. S., Howard, Warehouse $1.5M by end $2.5m reduction
with 2 key
Rec (TBD) May by end Sept.
suppliers
Viki, Kathy C., Andy,
Review safety Reset safety In line to $11 m
Reduction in Fin. Goods $27/6m/56 days $11m/30 days Dan Gomez/Jude P. Mark M., Howard, Mike Gloversville pull
stocks stocks by 9/30
M.
Dan Fleck, Peter M.,
Reduction in De-gas time 16 hours 8 hours Ray H. Jay, Brian M., Howard, Establish plan 2 pc 3 pc 3 pc Glebar 4 pc
Tech
Financial Tracking of progress Lean statement Mario / Mike G.
17. First Phase Completed - February, 2007
Improvement Implemented
After:
Before
Currently, inks carts with materials needed
Previously, all materials required to do
to complete an order are brought together!
a job were scattered throughout the
room
18. Required LEAN & Six Sigma Tools and Training
• Value Stream Mapping
• Visual Pull System
• Setup Reduction On Stamping Machine
• Standardized Work For Each Process
• Cell Layout
• Problem Solving
• 5S (Workplace Organization)
• Visual Control / Management
19. Custom Transformation Results
• Employee Moral UP
• On-time Delivery Up 78%
• Production Lead Time Down 43% to 3 Days or Less
including peak month
• Productivity Up 30%
• WIP Down 96%
• Sales Up 16%
Custom Continuous Improvement is still going…and there is never ending
20. People Are A Company’s Greatest Asset
Q&A?
Lean is all about PEOPLE being engaged ; 100% employee involvement
