1. Lean methodology
• Definition: To achieve a manufacturing cycle
time of 5 days or less for standard products over
90% of the time.
• Key metrics:
– Average Manufacturing Cycle Time
– % of Units with an MCT of 5 days or less
• Scope:
– Manufacturing Cycle Time (MCT) = Order release to
operations through shipment from manufacturing dock
– Sales orders for standard end products
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2. Lean methodology
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3. Lean methodology / 4 quadrant chart
Four Quadrant Chart Analysis
Sho-Rate Manufacturing Cycle Time - Dec FY08
Sho-Rate MCT by Unit Actual Reasons for MCT > 5 days
20
Target
Req Date > 5 days
18
16 Shipped in 5 days
Business Days
14
Purchase Part Shortage
12
10 Other
8
6 Non-stock Tube
4 Machined Part Shortage
2
0 Resources
Jan-07
Feb-07
Mar-07
May-07
Jun-07
Jul-07
Aug-07
Nov-07
Apr-07
Sep-07
Oct-07
Dec-07
0 100 200 300 400 500 600
Number of Meters
Action Plan Resp. Date Root Cause Analysis
1) Implement single piece flow to improve the A. Halteman 1/31/08 1) Batch processing is causing the cycle time in operations to be
speed and repeatabiltiy through the greater than 5 days.
production line
2a) Update published lead times to 2 weeks A. Halteman 1/18/08 2) The published lead time of 3 weeks has caused the delivery
to reflect current process capabilities & J. Dillon expectations from our customers to be > 5 days.
2b) Reevaluate published lead times for A. Halteman 3/14/08
additional potential reductions & J. Dillon
LT distribution- Line #1
100%
90%
80%
70%
60%
Over 2 weeks
Month
50% 2 weeks
1 week
40%
30%
20%
10%
0%
2007M1 2007M2 2007M3 2007M4 2007M5 2007M6 2007M7 2007M8 2007M9 2007M10 2007M11 2007M12
3 %

4. Lean methodology / Report out
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5. Lean methodology / CPI
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6. Lean methodology / Pictures
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7. Lean trainings – everyday examples
I. Visual Control - No what is going on without anyone telling you
o Highway and street signs
o Traffic signal - red, yellow , green
o Airport signs and display boards
o Soccer game score board
II. Five S - Work place organization
o Performing and sustaining Spring Cleaning
o See paper on the floor - add to it
o See paper on the floor - leave it
o See paper on the floor - pick it up
o Personal involvement and encouraging to establish and maintain great
housekeeping
o Inspecting areas for good housekeeping
III. Standardized Work - Finding the best routine and repeating it
o Your travel to work - the same way each day
o Your daily routine - rise up from bed, brush your teeth, shower, dress
yourself
o Your weekly routine - work, chores on Saturday and Church on Sunday
o McDonald Restaurant - French fries taste the same regardless of location
IV. Kanban - Sell one, buy one
o Grocery store cereal
o Milk in your refrigerator
o Gas in your car
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