Gaining Efficiencies in Contract Sewing Through LEAN Manufacturing Techniques

Bob RosaniaCEO

Ehmke Manufacturing CompanyOctober 15, 2018

AGENDA:

• Why Change? (One Company’s Perspective)

• LEAN Philosophy

• LEAN Tool Box

• LEAN Outcomes

Why Change? (One Company’s Perspective)

Ehmke – Your Textile Solutions ProviderSince 1929

From concept to finished product, Ehmke can help make your ideas become reality

Product Offerings:

1. Aircraft Products & Custom Interiors.

2.Tactical Systems (HIGH GROUND Tactical Gear)

3. Custom OEM & Military Sewn Products

4. Commercial Products

Pro

Sewn End-Products Since 1929

Current State (Yr. 2006):

• Top Down Management & Direction.• Batch Loading Production Lines.• Significant Work in Process (WIP).• Excess Inventory.• Piece Work Culture.• Tool Crib/Machine Warehouse/Clutter• Discreet Order Driven.

Future State (Yr. 2018):

• LEAN Culture – Production Cell Driven.• One-Piece Flow.• Significantly reduced WIP (Cart Reduction Program)• 50% Reduction in Inventory for 2X the amount of business.• Team Productivity Bonus.• 5S Approach.• Process Flow Driven.• Dramatic Improvement in Quality.

Implementing LEAN Tools = Improved Profitability

LEAN Philosophy

LEAN Philosophy“A systematic approach to identifying and Eliminating Waste (non-value-added

activities) through continuous improvement by flowing the product at the pull of the

customer in pursuit of perfection.”

The MEP Lean Network

“An organized war on waste.”

1. Know your TARGET: https://www.youtube.com/watch?v=3wAjpMP5eyo

2. Consider new ways to perfection: https://www.youtube.com/watch?v=_XmhBaUdges

Definition of Lean Thinking:

A systemic approach that maximizes customer value while minimizing non-value activities and frustration in pursuit of a vision / direction.

The term “LEAN" was coined to describe Toyota's

business during the late 1980s by a research team

headed by Jim Womack, Ph.D., at MIT's

International Motor Vehicle Program.

History of Lean Manufacturing

1920’s

Ford

1970’s

1920’s

Ford 1970’s

Toyota 1990’sLEAN

Manufacturing2000’s

LEANEnterprise

Lean = Eliminating the Wastes

Value Added

Typically 95% of all lead time is non-value added

• Transportation

• Inventory

• Motion

• People

• Waiting

• Overproduction

• Overprocessing

• Defects

Non-Value Added

Examples of Waste

▪ Redundant Inspection

▪ Multiple Systems (MRP)

▪ Excess Forms and Supplies

▪ Batch Loading

▪ Downtime (Computer Networks)

▪ Searching for Paperwork

▪ Waiting for Instruction

▪ Excessive Transactions

5 Guiding Principles of Lean / CI:

PERFECTION

PULL FLOW

VALUE

VALUE

STREAM

Characterize the Value

Stream (set of activities)

for each service /

process while removing

waste.

Progressive achievement

of value creating steps with

minimal queues and no

stoppages or backflows of

product, information or

services

A system in which

nothing is produced by a

supplier until the

customer signals a need

Always compete

against perfection

not just your

current competition

Define value as seen by your customer

LEAN Tool Box

• Kaizen Opportunity Form

• Current vs Future State Summary

• Value Stream Mapping Tool

• Spaghetti Diagrams / Process Flow

• SLEAT Analysis

• 5S Organization

Title: What are you talking about?

Background & Observation of problem

Current Conditions

Goals / Objectives

Analysis

Proposed Countermeasure(s)

Plan Implementation

Follow up & Replication

Describe the business problem

- Why are we talking about this? - What is the negative effect of the problem on the process outputs

Where do things stand today?

Utilize the concept of 5W and 1H to define the scope of the issue

What When

Where Who

Which How

-Describe what you are trying to accomplish. Use as many metrics as possible to define .

-What specific outcomes are we seeking?

What are the potential root cause(s) of the problem.

- Why are we experiencing the symptom?

- What constraints prevent us from the goal?

Choose the simplest problem-solving tool for this issue:

- Five whys

- Fishbone

Verify the root cause by being able to turn the problem on and off.

Your proposal to reach the future state, the target condition.

- What alternatives could be considered?

- How will you choose among the options? What decision criteria?

How your recommended countermeasures will impact the root cause to change the current situation and achieve the target.

What activities will be required for implementation and who will be responsible for what and when?.

A Gantt chart or facsimile that shows actions/outcomes, timeline and responsibilities. May include details on the specific means of implementation.

- Who will do what, when and how?

Indicators of performance, of progress.

- How will we know if the actions have the impact needed?

- What are the critical few, visual, most natural measures?

- Create process standards and institutionalize

Monitor performance and assure remaining issues that can be anticipated are addressed

- Any failure modes to watch out for? Any unintended consequences?

Ensure Replication in other areas

OwnerDate

19

LEAN Outcomes

EHMKE MFG COMPANY INC.

Government Order Shipping Process

Date of Event: May 15, 2016

Project Champion: XXXXXXXX, XXXXXXXX, XXXXXXXX

Focus: To improve the order process, eliminate errors, reduce process time

Value Add Time Non-Value Time

Future State Summary Future State Future State

Process Time 6.25 Hrs 0

Transportation 0 390 Ft

Waiting 0 4.0 Hrs

Over Process 0 0 Min.

Waste Identified: Current Future

Transportation: Order traveles around the Plant as a 12 Step process through 4 Departments. 1644 Feet 390 Feet

Inventory: Current Process takes almost 21 hours (over (2) 10 hour days) 20 Hr. 55 Min. 10 Hr. 15 Min.

Motion: Departments handle the same order multiple times. Production (3), Shipping (3), Quality (4). 12 Steps 4 Steps

People: Same people handle the order multiple times.

Waiting: Order waits to be processed at each step. 14.16 Hrs 4 Hrs

Over Processing: Same people review the order at different steps. 30 Min. 0 Min

Over Production: Reviewing documents to extract the same information at different steps in the process.

Defects: Processing the same information multiple times at different steps increases the chance of an error. 1 Error / Order 0 Errors

AutoDWG copy drawing's einties to clipboard, www.autodwg.com

Spaghetti Diagram – Raw Data

LEAN TOOL BOX

LEAN Outcomes

Spaghetti Diagram – Ehmke Plant Layout – Current State (2006)

Plant LEAN Flow: Opportunities And Challenges

• Shipping and Receiving all materials at one docking point

• Scattered raw material inventory points

• Multiple Upstream processing cells

• Obsolete materials occupying rack space

• Open floor plan – able to see whole plant from front to back

Spaghetti Diagrams - Ehmke Plant Layout – Future State (2007)

SLEAT EVALUATION (Annually) 2006: 1.8 out of 5.02010: 3.8 out of 5.0

Ehmke Manufacturing Co., Inc.

April 6th, 2006

0

1

2

3

4

5

1.1 Company vision

1.2 Vision Deployment

1.3 Setting Goals

1.4 Lean Plan

1.5 Communication

1.6 Workforce Attitude

1.7 Working Environment

2.1 Value Stream Analysis

2.2 Factory Organization

2.3 Supplier Management

2.4 Product Flow

2.5 All Reasonable Physical

2.6 Communication of Production

2.7 Shop Floor Control

2.8 Inventory Control3.1 CPI Project 3.2 CPI Training

3.3 Data Availab

3.4 5S’s Implementation

4.1 Manufacturing Teams

4.2 Empowerment

4.3 Multi-Skilled Labor

4.4 Training

5.1 Standard Work

5.2 Total Productive Maintenance

5.3 Variation Management System

5.4 Facilities

6.1 Cross Functional Teams

6.2 Producibility

6.3 Design to Cost

6.4 Performance Measures

Ehmke Manufacturing Co., Inc.

Ehmke Evaluation May 03, 2010

0

1

2

3

4

5

1.1 Company vision

1.2 Vision Deployment

1.3 Setting Goals

1.4 Lean Plan

1.5 Communication

1.6 Workforce Attitude

1.7 Working Environment

2.1 Value Stream Analysis

2.2 Factory Organization

2.3 Supplier Management

2.4 Product Flow

2.5 All Reasonable Physical

2.6 Communication of Production

2.7 Shop Floor Control

2.8 Inventory Control

3.1 CPI Project

3.2 CPI Training

3.3 Data Availab

3.4 5S’s Implementation

4.1 Manufacturing Teams

4.2 Empowerment

4.3 Multi-Skilled Labor

4.4 Training

5.1 Standard Work

5.2 Total Productive Maintenance

5.4 Facilities

5S Organization Audit

1. SORT

2. Straighten

3. Shine

4. Standardize

5. Sustain

6. Safety

5S AUDIT CHECKLIST

Date

SortWhat is need and not needed for production.

1 poor

2fair

3good

4verygood

5 excellent

Tools, materials, equipment NOT required for current job

No obstructions in aisle ways. Comments

Raw Materials, WIP, and Finished Goods are NOT to

be considered as part of this criteria.

StraightenA place for everything and everything in its place

1 poor

2fair

3good

4verygood

5 excellent

Material and machine locations are designated.

Materials and machines are in(side) proper locations. Comments

Also includes: sample(s), templates, and communication boards

Carts, ladders, and samples can be returned at the end of the shift.

ShineClear and clean work surfaces and area

1 poor

2fair

3good

4verygood

5 excellent

Machines are free of grease or material buildup.

Work surfaces are free of any substances that might damage product Comments

or machinery.

Daily debris from normal production should be cleaned at the end

of the shift and not counted against this criteria.

StandardizePlant wide use of common practices

1 poor

2fair

3good

4verygood

5 excellent

Markings, colors, and designations are the same in production areas

to material storage racks to maintenance areas. Comments

Within a certain area - a particular practice must be used for all

common resources (i.e. same numbering system on machines,

identificationn of raw material boxes)

SustainMaintain & improve Sort, Shine, Straighten, Standardize

1 poor

2fair

3good

4verygood

5 excellent

Area clean up at end of shift (minimum) or more frequently.

Communication board being utilized to raise questions, comments, or Comments

clarification of a new piece of equipment or best practice.

Compare last two audits' observations - have these been addressed

and/or did they occur again?

Score

5S – SORT, STRAIGHTEN, SHINE, STANDARDIZE, SUSTAIN (and SAFETY)

5S – SORT, STRAIGHTEN, SHINE, STANDARDIZE, SUSTAIN (and SAFETY)

LEAN Outcomes (Since 2006)• Improved Productivity

• Yr. 2007 to Yr 2008• 48% Increase in Top Line Revenue• 110% Increase in EBITA• Net 2 FTE added

• One-Piece Flow instead of Batch Loading• Significant reduction in Work-in-Process (WIP)• Reduction in Inventory / Increase in Inventory Turns/ Point-of Use Inventory• Improved Quality

• Customer - Global Aerospace Company• Deliver approximately 10,000 Contract Line Items (CLINs) Annually• 1st Time Quality Rating: 99.82%• On-Time Delivery Rating: 99.71%• Global Performance Excellent Award 5 out of 11 years• Global Supplier of the Year (selected from 14,000 global suppliers)

• Employee Retention - Productivity “LEAN Line” Bonus (Simple, Visual, Employee Involvement)• Production Cell Bonus vs Piece Work

• Corporate Culture Gains (Trust, Transparency, Scope & Sequence)

• Sales & Marketing Tool

Resources• Books:

• LEAN Thinking – James P. Womack (1996)• Toyota KATA – Mike Rother (2009)• LEAN Turnaround – Art Bryce (2012)• How to Implement LEAN Manufacturing – Lonnie Wilson (2009)

• YOU – Executive / Management sets the vision, but the Shop Floor makes it successful!• Willingness to learn• Willingness to adapt (Philly Special)• Willingness to improve

• LEAN/Six Sigma Training: IASSC• Website: https://www.iassc.org

• Manufacturing Extension Partnership / NIST• Fifty-One (51) Industrial Resource Centers nationwide to assist SMEs• Website: https://www.nist.gov/mep/mep-national-network

• Philadelphia area Delaware Valley Industrial Resource Center (DVIRC) is the national leader in providing LEAN Training to SMEs (Website: www.dvirc.org)

Manufacturing Extension Partnership (MEP) Industrial Resource Centers

THANK YOU

Ehmke Manufacturing Company, Inc.

4200 Macalester Street

Philadelphia, PA. 19124

Ph: (215) 324-4200

E-Mail: brosania@ehmkemfg.com

Visit our Website @ www.ehmkemfg.com