The goal of this project was to maximize the productive use of the available space in Loram's manufacturing facility. The team wanted to create designated work spaces known as Large Work Centers (LWC) to improve the product flow through the manufacturing facility. This will then minimize unproductive touches of product which will reduce the time it takes it to move through the shop and minimize the risk of damage when it is handled. The project also focused on the layout of the LWC to maximize efficient access and organization of tools and equipment needed to assemble Loram's machines. I functioned as the engineering representative on the cross functional team and provided technical knowledge on the size of the parts and assemblies, the bill of materials, and the work breakdown structure for the Loram's machines that were to be assembled in the LWC. I then used these key pieces of information to layout out the LWC and helped the team finalize the layout for the manufacturing facility. The result was $45,000 in annual savings due to reduced product movements, a reduction in damage to products when moving them within the facility, and proving that a $100,000+ expenditure on a crane was unnecessary.

1. Strictly Confidential
Large Work Center
Review
April 2017

2. Charter – Large Work Center
Business Case
This project will define and layout
the work flow for large assemblies in
the production area to minimize
unproductive touches of parts and
assemblies and minimize the risk of
damage by eliminating unneeded
touches.
The Project Team will develop a plan
that considers and incorporates
Lean principals.
Opportunity Statement
Current State has no dedicated space
for an appropriate working
environment. Material is moved and
touched too many times before
completion. This creates an
environment for potential material
damage.
Extensive labor hours are being
wasted because of inefficiencies in
product movement, tooling, and
material layout.
Goal Statement
Y = Define production assembly work
flow layout to maximize space and
minimize the 8 types of waste.
X1 = Wasted movement and inefficient
labor hours.
X2 = Work Zones have not been
defined
X3 = Work activities are not specified
and defined
X4 = No visual controls in production
environment
Project Scope
Define work activity and zones for
large assemblies in the production
area, with an indoor unloading zone
to eliminate the need for an outdoor
crane
Determine Production flow in
accordance with Lean principles.
Project Plan
Charter Completed – April 13
Charter Presented to Leadership –
April 14
Presentation of Charter to Top
Management – By April 28
Project Define Launched – April 30
Project Define Completion –
October 2015
Executive Review - Oct 2015
Team Members
Champion = Plant Supervisor
Project Leader = Lean Practitioner
Coach = Continuous Improvement Mgr.
Lean Practitioner = Manufacturing
Project Engineer
Shop Employee 1 = Shop Laborer 1
Shop Employee 2 = Shop Laborer 2
Safety = Safety Engineer
Engineering = Mechanical Engineering
Manager

3. Scope Clarity
• Define work activity and
zones for large
assemblies in the
production area
• Limited to assemblies
with BOM’s that allow all
parts to be installed or
completely assembled
• Determine Production
flow in accordance with
Lean principles

4. Current State
• Few defined 5S locations for tools and parts
– Work is not in close proximity to tools and parts causing wasted movement
• No production flow plan
– Work activities not specified, not performed in a sequential manner
• The shop was substantially undefined work space:
– Scattered assemblies, work performed wherever space can be found
– Frequently move assemblies and entire cars causing damaged parts and rework

5. • Wasted movement = Strategy X1
• No Visual Controls demonstrated = Strategy X4
Current State Continued – Large assembly movement
in the shop due to not having a dedicated assembly zone
Frequent and complicated movements are required to get assemblies into areas to do
work. Large assemblies are restricted to on-track movements based on current railroad
track cart usage.

6. Large Assembly List
• The team brainstormed
ideas of how to define the
work to be performed
• The group used types of
assemblies to develop the
zone layout
• The RG400 and SBC
product lines were utilized
as templates for size and
volume (other existing
product lines fit inside these
groups)
• Cabs
• Rooms
• Shrouds
• Above Deck Tanks
• Below Deck Tanks
• Pump Box
• Foam Storage
• Dust Units
• Troughs
• Buggies
• Conveyors
• Walkway Lighting

7. Large Assembly Worksheet
• Product structure worksheets were used to define the assemblies and spaces needed
• Only assemblies that could be built as sub-assemblies and installed into a larger
assembly were considered within scope
• Level 3 assemblies can be completely built without a car frame

8. Zone 1-G Zone 1-D
Zone 1-E
Zone 1-F
Zone 1-C
Zone 1-A Zone 1-B
Large Work Center Layout
• Flexible work zone allows different sized assemblies to use the same spaces
• Materials are located next to the work, storage shelves double the amount of
materials in the floor space
• Zones provide safe clearances for working and equipment travel

9. Future State - Final Layout
• The final layout has reconfigured work zones providing enhanced space
utilization
• The work zones are moved to the center of the shop
— Created space for an unload zone inside the shop
— Removed the need to go outside to install completed assemblies onto frames in bay 2
• Walkways widened and changed to travel lanes for people and materials
— Low profile assembly moving devices purchased to allow easy movement of large
assemblies throughout the shop

10. Future State - Final Layout

11. Tool Boards – For Easy Access and
Organization

12. Tool Boards – For Easy Access and
Organization

13. Visual Control Boards
• Consistent design following the format used in the other work centers
— Permits quick and easy visual identification of the production status
• Pull vs push inventory frees up floor space
— Reduces lost and damaged inventory

14. Safety Considerations
• Identified lanes
– Access for forklifts, scissor lifts, material, etc.
– Clear walking lanes
• Safety equipment in identified locations
– Fire extinguishers, spill kits, First Aid kits previously installed in the area
meet regulation
• Work areas sized for safe use of equipment around products
− Ladders, scissor lifts, etc.
• Proper tooling identified and readily available work
• Lighting
– High ceilings and shadows around and under material may necessitate
pairing ceiling lights and hardhat lamps/flashlights to keep the workspace
illuminated

15. Summary of Improvements
• Created a dedicated structured work zone
Strategy X1 (Reduce wasted movement and inefficient
labor hours) & Strategy X2 (Work zone identified)
• Create Standard Work Documentation
Strategy X3 (Define work activities)
• Communication – Production work flow
process and visual controls
Strategy X4 (Implement Visual Controls boards)

16. Large Work Center Payback
• Assumptions:
— The LWC will not recognize the
full benefit of shared shop
expenses
— The LWC will realize fewer
efficiency gains due to
substantial and unimproved
material movement
• Discoveries:
— Large shared expenses (such
as an outdoor crane and
material handling carts) were
not incurred
— Shop material handling lanes
opened up unforeseen
opportunities to devise better
methods of efficient material
movement
• Annual savings of
$45,000
• Estimated payback is
nine months
• No outside crane is
needed to unload
shipments saving over
$100,000+ in capital
expenditures