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BENEFITS OF A
“CI/Lean” CULTURE

 Rick Foreman
Who is Federal Heath Sign Company?
•Customer-focused, full-service sign company
since 1901
•Multiple manufacturing locations
•Nationwide Sign & Lighting Maintenance division
•Specialty Re-imaging division
•Diversified customer base
•Flexible to meet customer needs
•Strong financial track record
•Growth oriented
Nationwide Support
Markets Served
    Automotive

      Finance

      Gaming

     Hospitality

     Corporate
  Identification/Custom

     Petroleum

    Restaurants
What are the Possibilities?
• Profitable
  Growth in a
  challenging
  economic
  environment?
“CI/Lean” Culture Change
•   Started @ Top – CEO/President Level
•   Established full time CI/Lean Development Leader
•   Assess Organizational Culture
•   Develop Implementation Strategy
•   Know the “why” & “purpose”
•   Develop Lean Leaders & Network
•   Engage, Connect, & Influence
•   Know your audience
“CI/Lean” Culture Change
  Customer & Stakeholder Satisfaction

              Gemba              Team

      ENGAGE-CONNECT-INFLUENCE

                          Middle Mgmt
       ENGAGE-CONNECT-INFLUENCE

                      CEO & Sr. Mgmt
SERVANT LEADERSHIP
STYLE SUPPORT
Deployment/Sustain Strategy
• Systematic Identification/Elimination of Waste
• Go the “Gemba” – Engage workforce
• Rigorous CI/Lean Book Club Process
• Strong 6S: Everything has a place/in it’s place
• Hands On Problem Solving: Ask why again and
  again and again
• Organizational learning
• Maintain sense of urgency (tension)
We’re
                    Leaning
                   Things Out
The cumulative efforts of systematically
  identifying and eliminating waste continue
  to yield great results. (HOW?)
  Go See                       @ The Gemba

       CI/Lean Office Key: Ask what are
        your biggest or most frequent
          frustrations or constraints?
Are We Winning? Was it a good day?
What Do We See?
• Engage through
  visual
  examples/stories
  outside of work
  environment
Engagement/Accountability
                                                               Comments / Results
  Continuous Improvement                                       / Why? / Reducing-
                                                       Owner
           Tasks                                                Eliminating Which
                                                                     Waste?
Re-arrange saw in metal area to                                Open up flow from
be parallel to iron worker. Review                             metal fab into weld
need of rack in between metal                                  area By opening this
fab & weld (more of a catch-all &                              area up we saved 23ft
labeling not close to actual         11-    7-    3-           per trip average 8 times
condition)                           Nov   Jan   Jan   Sam     a day saves 184ft a day.
Consolidate / remove storage                                   Eliminate conveyance /
racks in the receiving area to                                 Wasted motion Keeps
provide ample space for inbound                                the aisle clean so we do
freight without blocking the aisle                             not have to move
. This requires extra travel                                   something to get down
distance for lifts / buggies                                   the aisle opening up
carrying product to areas of the     17-    7-   15-           143 sq ft of floor space
shop                                 Dec   Jan   Jan   Tony
Results
• Texas Mfg Assistance Center Awards @ Two
  Texas Facilities (TMAC Evaluator is a certified
  Shingo Examiner)
• Inventory turns up to a high of 18 from 9
• Rev. per employee up to $250k from $195k
• VOC ratings over 9 on a scale of 1-10
• Variance reductions of 10%
• Set-up reductions of 55%
• Warranty under 1% of product revenue
Key Points & Conclusion
• Influence Behavioral Change: “Change sticks only
  when it becomes the way we do things around
  here.” John Kotter, Leading Change
 Influence Cultural Change: "We don't have to
  change, survival isn't mandatory" W. Edwards
  Deming
 Model the Way / Lead: “It is amazing what you
  can accomplish if you do not care who gets the
  credit.” Harry Truman
 Continuously Communicate the “Why” & “How”:
  A vision without execution is hallucination.

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Benefits of a CI/Lean Culture

  • 1. BENEFITS OF A “CI/Lean” CULTURE Rick Foreman
  • 2. Who is Federal Heath Sign Company? •Customer-focused, full-service sign company since 1901 •Multiple manufacturing locations •Nationwide Sign & Lighting Maintenance division •Specialty Re-imaging division •Diversified customer base •Flexible to meet customer needs •Strong financial track record •Growth oriented
  • 4. Markets Served Automotive Finance Gaming Hospitality Corporate Identification/Custom Petroleum Restaurants
  • 5. What are the Possibilities? • Profitable Growth in a challenging economic environment?
  • 6. “CI/Lean” Culture Change • Started @ Top – CEO/President Level • Established full time CI/Lean Development Leader • Assess Organizational Culture • Develop Implementation Strategy • Know the “why” & “purpose” • Develop Lean Leaders & Network • Engage, Connect, & Influence • Know your audience
  • 7. “CI/Lean” Culture Change Customer & Stakeholder Satisfaction Gemba Team ENGAGE-CONNECT-INFLUENCE Middle Mgmt ENGAGE-CONNECT-INFLUENCE CEO & Sr. Mgmt SERVANT LEADERSHIP STYLE SUPPORT
  • 8. Deployment/Sustain Strategy • Systematic Identification/Elimination of Waste • Go the “Gemba” – Engage workforce • Rigorous CI/Lean Book Club Process • Strong 6S: Everything has a place/in it’s place • Hands On Problem Solving: Ask why again and again and again • Organizational learning • Maintain sense of urgency (tension)
  • 9. We’re Leaning Things Out The cumulative efforts of systematically identifying and eliminating waste continue to yield great results. (HOW?) Go See @ The Gemba CI/Lean Office Key: Ask what are your biggest or most frequent frustrations or constraints?
  • 10. Are We Winning? Was it a good day?
  • 11. What Do We See? • Engage through visual examples/stories outside of work environment
  • 12. Engagement/Accountability Comments / Results Continuous Improvement / Why? / Reducing- Owner Tasks Eliminating Which Waste? Re-arrange saw in metal area to Open up flow from be parallel to iron worker. Review metal fab into weld need of rack in between metal area By opening this fab & weld (more of a catch-all & area up we saved 23ft labeling not close to actual 11- 7- 3- per trip average 8 times condition) Nov Jan Jan Sam a day saves 184ft a day. Consolidate / remove storage Eliminate conveyance / racks in the receiving area to Wasted motion Keeps provide ample space for inbound the aisle clean so we do freight without blocking the aisle not have to move . This requires extra travel something to get down distance for lifts / buggies the aisle opening up carrying product to areas of the 17- 7- 15- 143 sq ft of floor space shop Dec Jan Jan Tony
  • 13. Results • Texas Mfg Assistance Center Awards @ Two Texas Facilities (TMAC Evaluator is a certified Shingo Examiner) • Inventory turns up to a high of 18 from 9 • Rev. per employee up to $250k from $195k • VOC ratings over 9 on a scale of 1-10 • Variance reductions of 10% • Set-up reductions of 55% • Warranty under 1% of product revenue
  • 14. Key Points & Conclusion • Influence Behavioral Change: “Change sticks only when it becomes the way we do things around here.” John Kotter, Leading Change  Influence Cultural Change: "We don't have to change, survival isn't mandatory" W. Edwards Deming  Model the Way / Lead: “It is amazing what you can accomplish if you do not care who gets the credit.” Harry Truman  Continuously Communicate the “Why” & “How”: A vision without execution is hallucination.