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Herman Miller
Performance System
“Inspiring Designs to Help People Do Great Things”
Herman Miller’s Vision
• 105 Year Old Company
• $1.84 Billion Annual Sales in 2014
• 13 Manufacturing Sites, 2 Distribution Centers
• 5,500 Employees
• Sales in over 100 Countries, on Seven Continents
Global Company
• Products are
option rich
• Build to order
• Orders made from
multiple product lines
with 10 and 20 day
lead-time
• Installation
assembly done at
customer’s site
• Growing segment of
Consumer business
Facts About Our Business
…if your primary customer
demanded Lead Time
reduction of 70%, Price
reduction 30% and
minimum order quantities
of of 1 or you would lose
half of your business?
What Would You Do…
Section Title
Needed to fundamentally
change our manufacturing
model
The Story begins with Tu
Tu Pedestal Value Stream
Tu Initial Condition
PLA
NNED $
6 M
ADDIT
ION
Initial Floor Condition—Plant Layout
+60
• 6000/wk
• 2 lines + 4 cells
• 3 shifts
• 126 people
• 20 min changeover
1996 Tu Pedestal Value Stream
Mr. Ohba’s challenge: 1
line, 2 shifts, 16 people
Tu Initial Condition 1996
Current Condition
• 6,000/wk
• 2 lines + 4 cells
• 3 shifts
• 126 people
• 20 min changeover
• 62 hours
• 6,810/wk
• 1 line
• 2 shifts
• 30 people
• Instant changeover
• 4 hrs
Today
1996 (Tu Only) 2014 (Combined)
Results
Results
Results
Results
Who is Herman Miller?
Our Lean Journey
Our Lean Journey
Our Lean Journey
Growing and Spreading—Model Lines
Corporate Results
-
3,000
6,000
9,000
12,000
15,000
18,000
1996 2000 2005 2010 2012
1,500,000
2,000,000
2,500,000
3,000,000
3,500,000
4,000,000
1996 2000 2005 2010 2012
0
10
20
30
40
50
60
1996 2000 2005 2010 2012
60%
70%
80%
90%
100%
1996 2000 2005 2010 2012
Quality (ppm) Reliability
Inventory Turns Mfg. & Dist. Sq. Ft.
Continue to Expand the Value Stream
• People Development and
professional challenge
• Safer working
environment
• Reduce operator
struggles
• Job security
• Provide jobs that
add value
It’s as much about
the people as it is
the process!
Benefits for Our Employees
• Improved Reliability
• Shorter Lead Times
• Improved Quality
• Improved Flexibility
• Commitment to
Continuous
Improvement
Benefits for Our Customers
• Establish Serious top-
down commitment
• This is “HARD WORK!”
(Lace up your shoes
every day)
• You are changing your
culture—takes time!
Lessons Learned
• Established a LEAN
department led by top
management—they get
51% of the vote
• Need to find a good
coach—you will
eventually create
coaches in your
business
Lessons Learned
• Focus on the struggles
of the employees
• What can you do to
help them succeed?
—Don’t just focus on
the result you want
Lessons Learned
• Role of Leader changes
• Go and See—with your
own eyes (get out of the
conference room!)
• Zoom in and zoom out
—details and big
picture
• Become problem
solving coach
Lessons Learned
HMPS—Management System
We HATE investing in
expensive equipment!
Deep, time-consuming,
expensive investment in
developing all levels of the
organization
We have an unshakable
belief in our people, having
committed over 70 people
to our 6 month “Bridge
Program”
The Key to Our Success…
• Capture the gains &
reinvest in people
• Long term success
depends on it!
• Don’t underestimate
what they can do
when engaged
Lesson Learned
Ownership and engagement is needed from top level
leadership as a pre-requisite for success.
HMPS is a journey; it’s about singles not homeruns!
A Way of Life—Instill culture at all levels of the organization; HMPS is
flexible, living process of problem solving where you meet your customer’s
needs by engaging your workers and solving their struggles.
Reflection and learning at all levels of the organization
Here’s What It Takes
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