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