Waste elimination

2. F119 Cell Analysis Hoshin

3. F119 Cell Analysis 524P229-01 (408’) 524P240-01 (333’) 524P241-01 (222’) 524P235-01 (525’)

4. F119 Cell Analysis 524P229-01 (408’) 524P240-01 (333’) 524P241-01 (222’) 524P235-01 (525’)

5. F119 Cell Analysis 524P229-01 (408’) 524P240-01 (333’) 524P241-01 (222’) 524P235-01 (525’)

6. F119 Cell Analysis 524P229-01 (408’) 524P240-01 (333’) 524P241-01 (222’) 524P235-01 (525’) Lathe

7. F119 Cell Analysis 524P229-01 (408’) 524P240-01 (333’) Mill 524P241-01 (222’) 524P235-01 (525’) Lathe

9. Manual/Tumble Deburr

10. Wash

11. Inspection

12. Packing

13. Re – Layout Cell to significantly reduce Travel Times

15. Rapid Assessment

16. Rapid Assessment

17. Sept 8 – 10, 2009 Trust Technologies, Inc – Mentor, Ohio Waste Reduction Workshop F119 Cell Pt # 524P235-01

18. The TEAM 13

20. 20 Principles & 7 concepts of Lean –John Petak

21. 8 Forms of “TIM WOOD “ Waste – John Petak

22. 6 Rules of Quality – drive Quality First concept – John Petak

23. Defined 17 process steps VA 41% NVA 59% - Team

24. Defining the Current State VSM – Team (High Level Map) -Team

26. Review day one findings / lessons learned

27. Gather inventory data on all 17 process steps ( 85.7 days)

28. Kaizen Process overview with A3 Report out , Business case establish

29. Build current state metrics ( Distance part travels, inventory, manpower, cycle time, changeover time and first time yield or FTQ).

31. Review the past two days

32. Prepare new layout without “Tim Wood” waste

33. Build Plan, Do, Check and Act worksheet

34. Finalize A3 Report out

35. Measure equipment footprint to construct new layout

38. 19 Action Plan

40. General Observations 1. Excessive walk time from incoming receiving to shipping department (968’ or 324 yds) 2. Downtime not tracked and recorded daily to drive uptime in cell 3. Visual management with daily information need to run production ( KAN BAN Pull system, super markets) 4. Quality Defects or FIRST time Yield needs to be implemented 5.Train all associates to QMM standards 6. Point of use , real time of VA work.

42. Designing physical work space that supports a logical flow of all materials in the production area.Inspection & Shipping , 500 & 600 Opr #20 VALUE ADD

43. F119 Cell Analysis Hoshin

44. Future State Map – F119 524P235 - 01 24

46. Manual/Tumble Deburr

47. Wash

48. Inspection

49. Packing

50. Re – Layout Cell to significantly reduce Travel Times

52. New Layout

53. This letter is my personal recommendation for Exercise Lean. As a Project Manager, I was faced with the task of turning a non-profitable work cell into a cell that would provide 20% profit margins. Current profit margins were in the red, losing $50 for every part we had shipped to our customer was unacceptable business practice; our delivery of 30 units a week was costing the Kilroy Co. $1500 weekly.Our work culture needed to change otherwise we would be faced with the difficult decision to lay off more employees and move backwards from our goal of “growing the business”. That change was quite simple, a company from Simpsonville, South Carolina known as: Exercise Lean headed north to Mentor, Ohio to take on the challenge to prove that the Kilroy Co. can still compete globally in manufacturing, and provide profitable results in less than 6 months. President John F. Petak led the charge by coordinating a “Hoshin Process” and implementing and teaching continuous cost saving methods such as: 5 why problem solving techniques, kanban style super market pull systems, 5s, hour by hour production boards, progressing and monitoring timelines by using a plan do check act spreadsheet focusing on action items with assigned owners and implemented expenses with return on investment factored in. I am pleased to announce that in less than 6 months, we experienced a record sales month in April of 2010 due to the fact that we are now successfully shipping 100 units a week to our customer, and producing a part complete every 60’ (the initial goal was to make a part every 75’ to obtain a 20% profit margin). The 5s work shop was instrumental in making the project a success. Exercise Lean measured the old process using video cameras and stopwatches “real time” to determine where the waste essentially existed. Once the waste was identified the operators and cell leader placed a red tag on all items deemed not useful and were then placed in the red tag holding area implemented by Exercise Lean. Employees moral has also improved due to the adopted 5s culture. All hand tools, measuring devices and work instructions were placed on work stations designed by Exercise Lean, and built by the employees at the Kilroy Co. during the Hoshin Process. The workstations eliminated time spent walking or searching for items or tools needed to perform the job due to the fact that “all” needed items were in place ready to use and identified with a name, location and border therefore giving the operator or auditor instant view if an item was missing. Ergonomics were also vital in employee satisfaction, the old process traveled the length of three football fields, our current process travels less than 100 ft. Employee absenteeism has dropped by 11% over the last four months due to the new cell layout. As of today we have taken many of the principles and methods taught to us by Exercise Lean, and have implemented them throughout the entire shop floor, to better provide: quality, delivery, response, customer satisfaction and safety.I highly recommend Exercise Lean, for their services provided are nothing less than first class, they can provide value added methods to any company and have the devotion and services that are not commonly found amongst most practices today. Thank you, Brian McGill Project Manager Trust Technologies, a Kilroy Co.