Integration of lean, quality, energy and financial reporting

1. Strategic Integration
Lean Projects
Greenbelt Projects
Energy Projects
Financial Analysis Tools

2. Strategic Integration Project
Problems
Poor Delivery and Customer Service
Cost Competiveness
Scrap at 5% of sales
Plant losing significant cash and income

3. Strategic Integration Project
Long term plan: Solve all of the problems and leverage the
knowledge to automate the plant.

4. Problems Identified
Lean
Value stream Maps– identified bottleneck---identified non-value labor time-
--identified excess WIP
Six Sigma
Ranked top 10 scrap problems ---Over $1,000,000 in internal scrap---
identified major problems--- plating and machining scrap and 8 other
problems
Energy
$1,100,000 energy bill is about $1.00 per piece shipped. Misuse of
electric energy for water heating, drying, etc.

5. Projects Identified
Lean
Projects: 1. Plant layout project to improve bottleneck---- 2. Standard
Work A3 to improve labor utilization in machining. 3. Standard work A3 to
improve labor utilization in assembly, honing
Six Sigma
Trained 4 people in Six Sigma Green Belt ---- Project in plating--- Major
project in machining scrap--- 4 Green Belt projects on top scrap items.
Energy
Design engineering and cap ex proposal to convert plant from electric
heating of water and drying sludge to gas boiler to provide this resource.

6. Project Performance
All projects at edwardhalljones.com
Lean Process Design
Scorecard A3: 2 stroke machining
Plant layout Project
Resilient Quality Systems Design
Case Study: Improve Process Control, Implement SPC, Resilient Corrective
Actions----- summary of actual work performed
Six Sigma Projects
Broken Fins, Perpendicularity of bore, Compression Volume
Energy Systems
Case Study: Reduce Process Energy

7. Use Minitab to track cost improvement
Note reduction in cost variation as lean is implemented

8. Determine the supply curve
Demonstrates the effectiveness of continuous improvement and the effects
of volume on price.