Welcome Our Lean Story

Agenda• Presentation– Who is Wilson Tool– A Little about “Our Journey”– SAP Lean Examples in Order / Design Processing– Lessons Learned– Results– Questions and Follow On Discussion

Independent manufacturer of tooling for punch press,press brake and stamping industries

Punching and Bending Products

White Bear Lake, MNUnited StatesEnglandGermanyDenmarkFranceChinaEstablished in 1966ArgentinaA Network of Over 200 Direct Sales people andDistributors and over 20,000 customers.

WT’s LEAN JOURNEY1.) Why?2.) How WT started3.) Our road map and Lean tools weuse

Why Lean?• Foreign competition increasing• Costs growing significantly- steel, medical,supplies• Long lead-times thru the shop• High inventory costs due to batching• High setups due to batching• Under utilizing 100% of our staff• Morale was low• Customer requirements are increasing• We deliver great quality and service, but wework too hard• We were too top down with decision makingThe LEAN philosophy provided solutions to these challenges.

Before Lean• 2000 – SCOR Model– Supply Chain Operations Reference• Cross Industry diagnostics of your supplychain• 2001 – The ERP SAP Decision– Foundation for continuous improvement rooted inbest practices• March 2002 – SAP R3 4.6C Go Live– SD, FI, CO, PP, MM, WM, VC

How We Started• First, we needed to agree that change was needed:• Mgt group read “Toyota Way” and “Gemba”• Benchmarked surrounding companies• LEAN was supported from the top leadership• Second, we needed to see it to believe it:• Brought consultant group in to further train keypersonnel in: Value-Stream Mapping, 5S, Kaizen FlowEvents• Conducted several pilot projects (Kaizen Flow and 5S)to demonstrate real results• Created a slide show of our product to visualize waste• WE STARTED TO SEE

We put this logic to the test1 1/4” Die

• Selling price: $17– Total number of steps:• Value added (VA) 15• Non Value added (NVA) 62• Total steps……………… 77– Total lead time (VA and NVA) : approx 4 months

Where Was the Waste?% of time required to Process Work95%7 most common forms:WaitingTransportationProcessingInventoryMotionDefectsOverproductionValueAddedNon-ValueAdded

Our Road Map• Our goal was to improve flow• Identify our “value streams”• Work towards “one-piece flow”• Create standard work that insured“best practices” were sustained• Create a culture that requiredimprovement from all levels of thecompany and facilitatedsustainment

Culture• The most important element, but often the most overlookedand least talked about• Lean change must start from the top• Standard work is required throughout the company• Be prepared to empower your people• Standard cost accounting must be challenged• 100% staff must be involved• Nearly all ideas must be solicited and implemented• Allow people to take chances• LEAN is a way of life, not a project of the month orsomething you do in your spare time or when it’s convenient• No layoffs due to improvements• Information and processes become more visual so problemscannot hide

Wilson Tool’s Lean Tool Box• 5S• Kaizen• STAR• Quality Program• Leadership Standard Work

5S definedSortShineStraightenSustainStandardize

Before 5S

After 5S

STAR Program• Solutions That Achieve Results– Idea program aimed at implementing small,continuous improvements– Focus on quality, cost, delivery and safetywithin your work area– Strive to get the owner of the idea involvedwith the implementation– 2 ideas per person– Tied to performance review– Every 5 ideas results in $25 cash

Current SAP Landscape• Americas– ECC 6.0– CRM 4.0 ISA /w IPC• Europe– Enterprise 4.7• System Consolidation Project– Go Live June 2010

SAP Lean Initiatives• ISA – Internet Sales (e-Biz)– Push the order process towards the customer– Reduce lead time– Enable customers to manage their accounts– Provide services that minimize NVA activities

SAP Lean Initiatives• Internal Review Workflow– Reduce lead time– Eliminate NVA activities– Facilitate communications– Improve Quality

SAP Lean Initiatives• Engineer to Order Workflow– Reduce lead time– Eliminate NVA activities– Facilitate communications

SAP Lean Initiatives• Order Management Workflow– Reduce lead time– Eliminate NVA activities– Facilitate communications– Improve Quality– Increase Efficiency

SAP Lean Initiatives• Fast Data Entry (SD)– Reduce lead time– Eliminate NVA activities– Increase Efficiency

Lessons Learned• Have a strategic plan stating where you must go• Communicate your Strategic Plan• Use Deployment Planning; regularly updateprogress toward goals• Standard Work is critical for sustainment ofimprovements• Culture change – empowerment, recognition, peopleutilization vs. equipment utilization• Sustainment – conduct regular audits• Mgt support – involvement, education, leap of faith• Have a plan for the people you will free up

Lesson’s Learned Cont.• A successful culture is dependent on yourmanagement systems• If we don’t change the way we lead we willnot sustain the improvements• Communicate your changes 7 times, 7 ways• As leaders, get involved• Do not overlook the need for Leadership Std.Work

Kaizen AccomplishmentsKaizenPerformanceMetricsYear 1AverageResults(18 events)Year 2AverageResults(38 events)Year 3AverageResults(42 events)1. Productivity Gains20%27%27%(14 FTE)(12 FTE)(11 FTE)2. Through-Put74%25%39%3. WIP Reduction (pcs)54%See BelowTBD4. Set-up Reduction55%54%38%5. Safety Improvements7536. Standard Work100%100%100%7. Company Participation32%66%79%8. Space ReductionN/A43%11%9. Overall InventoryReductionN/A-19% cum-29% cum

Questions and Follow On• Contact Information– Miles P.J. Burd– miles.burd@wilsontool.com• Thank You for your Attention