2. In Existence for over 150 Years
Headquartered in N. Canton, Ohio
Banks, Credit Unions, and More
•ATM, Deposit Automation
•VAT
•Bullet Proof Windows
•Counterettes
•Under Counter Cabinetry
•Safe Deposit Boxes
•Vault Doors
•Commercial Chest
•Electronic Monitoring of facility (fire, security), including design and installation
Reliability and a commitment to Innovation and Service
3. Company has a Global Presence
Manufacturing Operations:
Shanghai, China
Manus, Brazil
Budapest, Hungary
Goa, India
Erpe Mere, Belgium
North American Operations:
Lynchburg, VA
Greensboro, NC
Lexington, NC
4. Lexington
Facility opened in 1997, early generation of ATM’s
Plant grew to multiple shifts with over 350 associates; diverse product lines
Diebold utilizes a 3PL, UTi, to manage off site warehouse (Colfax, NC)
2003, company introduces Opteva line of ATM
2008
•Plant adds 30,000 sq feet and moves Physical Security Products
•Move one product group overseas
•Company opens operation in Greensboro to manage delayed configuration of ATM’s
End of 2009
•Two additional product groups move overseas
•Remaining ATM and module/subcomponent assembly moves to Greensboro
•All raw materials and finished goods move back into Lexington
7. Where to start?
Focus on material racks and product on the floor. Material had migrated into locations
that didn’t necessarily make sense.
•Less racks = better visibility
•Materials on floor should be fast movers, 80/20 rule. Don’t clog up space with
oddballs; make processes to support them as you need them through inventory
accuracy and accountability
•Floor space is good. Create it whenever possible since it allows you to move quickly
with new opportunities (which includes internal Kaizens).
8. June 2010; New robotic weld cell in support of Safe Deposit
We focus on a few things (which will start to sound repetitive)
•Flow of material; one piece flow where possible; pull where possible….
•Scalability of operations; additional volume can be accommodated through
additional resources (people). When volume is off, a smaller team can effectively
run the same cell.
•Reduce the clutter; one of our SD boxes is a manual build; we moved its weld
station to the back of the plant with our other fab operations.
•We minimized the racks supporting the operation. Glue robot has all materials
practically at an arms length of the operator. He is self sufficient and is responsible
for triggering replenishment of materials.
•Opens up approximately 2,200 sq feet
9. The first domino has fallen! Move Commercial Chest……
•Accommodate more chests than the original layout. I can move to the next order while
someone finishes….
•Make the associate self reliant where possible; treat them like a surgeon (carts and
shadow boards).
•Eliminate the clutter. Unique cart to hold the days requirements of back panels so it
could be loaded and brought into the production area as needed. Interiors for future
orders are staged across the aisle and moved in as needed.
•Focus on ergonomics and unnecessary handling
10. Create our Shipping Floor
•We need room to stage additional outbound product (we have space!)
•We begin drop trailer programs to facilitate loading throughout the shift (we are more
efficient!)
•We right size the Shipping Office
•We create additional space for WIP queues make a new charger station out of
“nothing” (Safety and Productivity)
11. What about Under Counter Product?
Q3, 2011; How do we transition to Make to Order? We want to reduce our Finished
Goods inventory and eliminate dormant stocks
Q4, 2011; How can we change the layout of UC Fab to improve it?
Powder Coating
Upgraded lighting and installed new epoxy floors for visibility and cleanliness
Same themes….
Emphasis on parts presentation, tools, work stations. UC is a continuous sequential
build
•March 2012; complete relay out of UC fab, opens up approx. 3,800 sq. ft.
12. Recent Activity
Product returns from overseas at the end of 2011; opportunity for Lexington to increase
powder coat volume.
We need room for parts prep and un-hang.
•Consolidate racks, take them down.
•Employee led Kaizen for new Kitting cell
•Move one area and create the new one
Continuous emphasis on housekeeping (6S), Safety, and Continuous Improvement.
What is our next opportunity?
13. Cost per Earned Hour; reduced by 23%
Significantly exceeded planned contribution
Volume was 18% Higher than 2011 Business Plan; Spend was 6% lower than 2011 Business Plan
Plant generated over $400K of documented savings including the following categories:
•Internet Broadband Cost Reduction
•Reduce Direct Labor Costs
•Reduce Manufacturing Scrap
•Reduce Electrical Costs
•Reduce Glue Purchases for Commercial Chest
•Waste Stream Reduction
Quality
2011 Plan 157 PPM
Actual 58 PPM
Reduced Field Complaint PPM by over 50% Year over Year
Delivery Performance
2011 Plan 99%
Actual 97.5%
Exceeded 99% target in 7 of 12 months
Safety
Three recordable incidents in 2011
14. Current State Lexington, North Carolina
Powdercoat
Undercounter
Assembly
Commercial Chest
Safe Deposit/Setlock
Undercounter Fabrication
