Manex is a consulting firm that has helped manufacturers improve performance since 1995. They use a holistic approach across strategy, people, process, and performance to drive growth, profitability, and competitive advantage for clients. Case studies show Manex's work with clients reducing costs by 40-45% and increasing sales by 24-40% through implementing lean manufacturing techniques. Their services are proven to deliver a typical 6:1 return on investment.

1. Introduction to Manex
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2. The Corporation for
Manufacturing Excellence (Manex)
• Since 1995, Manex has provided a broad array of proven solutions
and resources exclusively to manufacturers, distributors, and their
supply chains, enabling them to compete on a global scale
• Manex uses a holistic and proven approach, from strategy to
implementation, to impact all facets of business performance
• Services areas include Strategy, People, Process and Performance
• Results: growth, profitability, and competitive advantage
• Manex is one of 60 NIST/MEP Centers throughout the US. We are here
to help manufacturers, distributors, and their supply chains grow
profitably
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3. Manex (cont’d)
• Focused on results and delivering Rapid ROI to position clients for
long-term success: Typical result is 6:1 ROI
• Affiliate of the National Institute of Standards and Technology (NIST)
Manufacturing Extension Partnership (MEP) program. NIST MEP
frequently cited as among the country’s most effective and
successful public-private partnerships
• Booz Allen Hamilton cited NIST MEP as a significant factor in
mastering innovation, showing NIST MEP program plays a key role in
helping midsized companies improve their innovation processes
• Value Manex provides to clients is measured by NIST to ensure we
meet and exceed clients’ business objectives
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4. Our Service Offerings
>>Strategy >>Process
• Corporate Strategy and Business • Lean Manufacturing
Planning • Plant Layout and Expansion
• Market Research and Development • Process Optimization
• Mergers & Acquisition Advisory and • Supply Chain Management
Integration • Logistics and Distribution
• Product Innovation • Inventory Optimization
• Customer Satisfaction, Loyalty and
Retention
• Turnarounds and Workouts
>>Performance
>>People
• Benchmark Assessment
• Six Sigma Training
• Management Dashboards and
• Organization and Operations Design Scorecards
• Knowledge Management • Key Performance Indicators (KPIs)
• Access to Federal and State • Quality Management Systems
Workforce Grants
• Six Sigma
• Nationally Recognized Lean
Certification Program • ISO/AS Implementation and
Certification
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5. Industry Focus & Expertise
• We cover a broad range of industries
• Food and beverage • Biotechnology
• Consumer packaged goods • Pharmaceuticals
• High technology • Precision manufacturing
• Medical devices • Automotive
• Aerospace • Rubber and Rubber Recycling
• Commercial Printing • Construction
• Our sweet spot: Companies with revenues between $10MM and $200MM
• Our diverse team brings an average of 20 years of experience to deliver
depth and breadth of industry and business know-how, from strategy
through implementation, including former:
• General Managers
• Directors of Lean
• Vice President of Sales
• Directors of Logistics
• Plant Managers
• Fortune 50 Consultants
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6. Rapid ROI Case Study
• Becoming Lean reduced total effort, scrap, waste, conveyance/transportation,
excess motion, energy/electricity and reduced time to ship finished goods
• Results included increased product sales and prices, decreased cost of
manufacturing and defect rate
• Improvements increased the value of the company by $6 million
Before After
Total Lead Time 21 days 15 days
Total Processing Time 6 days 5 days
Sales Levels $24 million $29 million
Pre-tax Earnings 2.67% 5.51%
Valuation $10.9 million $16.75 million
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7. Success Story – Biotech Company
Biotech Company Saves $25 Million on Expansion
Client’s Business Needs
• Medical device and software biotech needed to lower its cost structure to provide more features at the same
price, thereby providing more demand for its DNA sequencing products
• Company sought to reallocate production and administrative resources into R&D, which would be the key enabler to
add features and functionality without adding to the price
Our Approach
• Provided full-immersion Lean Training for entire team, starting with senior management
• Value stream map (detailed view of all processes) and high-impact events to reduce non-value add activities
• Workplace organization (process called 5S) of all workstations and production areas, to eliminate the biggest causes
of wasted time, motion and materials
The Results
• 40% increase in productivity
• Reduction of required floor space (“footprint”), eliminating need for a new building/facility
• 100% increase in throughput in Surface Production
• Reduced cycle time by 68%
• Consolidated 2 manufacturing areas into a single area in less than 1 day
• Reallocated 4 key personnel from production to R&D function
• Company announced IPO issuance in 2010!
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8. Success Story – Defense Contractor
Throughput Increased by 309%
Client’s Business Needs
• Fortune 100 defense contractor and aerospace company received massive Department of Defense order
• Company realized that they could grow their workforce to meet capacity, or improve operations and add
only a few new employees; they preferred the latter
Our Approach
• Construction of current and future state Value stream map (detailed view of all processes) of their order-
through-delivery cycle
• Identification of gaps and non-value added activities (between current and future state) and implementing
lean improvements to eliminate the gap and the non-value added activities
• Highly engaged training for all division staff on lean, quality systems and workplace organization
The Results
• 72% reduction, on average, of actual processing and assembly time
• 95% reduction in defects and rework for finished components
• 77% reduction in lead time (which increased productivity and sales opportunities)
• $13.4 million lower labor costs
• Carryover of concepts and improvements into Design/Engineering function and Stores Depot
• Ability to propose contracts on a more profitable, “fixed price contract” model
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9. Success Story – Coating & Sealant Co.
Holistic Approach Drives 45% Reduction in Material Costs and 24%
Growth in Sales
Client’s Business Needs
• The management team engaged Manex to assess the current manufacturing operations and identify
opportunities for improvement from order entry through shipping.
• Quality improvements and reduction in lead time led to an immediate increase in sales and demand.
• With a sharp increase in sales, company‟s capabilities were stretched to meet this increasing demand.
Company was now looking for a way to concentrate on operational excellence to help grow the business
and increase revenue even more.
Our Approach
• Conducted a detailed assessment consisting of 12 key business metrics benchmarked against leading
companies in the coating industry.
• Developed a roadmap to help prioritize activities to support and achieve their short and long term
business objectives.
• Lean methodologies were used as the foundation for continuous improvement. Manex trained the
workforce in 5S and the team implemented key process improvement activities (identified by Manex) and
eliminated bottlenecks throughout their operations.
The Results
• 24% growth in sales (year over year)
• 45% reduction in core materials costs
• 11% improvement in on-time shipments
• 2 day shorter lead times in remakes
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10. Why Implement Lean?
4 key points:
• Lean is simple
• Lean is common sense
• Lean can be used in any organization and in any area of
the organization
• Lean improvements will drop to the bottom line
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11. What is a Lean Manufacturing System?
• Systematic approach
• Eliminates waste
• Continuous improvement
• Pull of the customer
• Pursuit of perfection
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12. Phase 1 – Typical Current State VSM
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13. Phase 1 – Typical Future State VSM
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14. Impact / Effort Chart Prioritize
Opportunities
1. Need Usable and Timely
2 4 Metrics
1 2. Logistics Costs /
3 Inaccuracy
6
3. Production Scheduling
and Capacity
5 4. Warehouse Layout
7
Impact
5. Warehouse Processes
9 6. Yield Issue
7. Raw Material Availability
8. Weigh up Process
9. Product Hold for Test
8
Effort
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15. Reduce or Eliminate Non-Value Added
Activities to Improve Efficiency and Sustain
Growth
Source: Manex Consulting
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16. Value Added vs. Non-Value Added
• Value added is something the customer is willing to pay for.
Value Added is anything that changes:
• Form
• Fit
• Function
• Non-Value Added is:
• Everything else
WASTE NVA increases costs
making us less competitive
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17. Value Added vs. Non-Value Added
Value Added Examples:
5% • Drilling a hole
• Installing a flange
• Driving a screw
Non Value
Added, but
Necessary
35%
Examples:
• Reach for the drill
• Pull down wrench
• Unclamp and clamp Non Value
Added
60%
Example:
• Walking to get
parts
• Waiting time
• Part storage
• Transport
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18. Eliminating NVA (Waste) - DOWNTIME
DEFECTS OVER PRODUCTION WAITING NVA PROCESSING
TRANSPORTATION INVENTORY MOTION EMPLOYEE
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19. Focus on Total Costs and Not Just Labor
Source: Manex Consulting
All Content © Copyright 2012, Manex Consulting 19

20. Importance of good quality
Type
At 6σ (99.73%) At 4σ (95.46%)
Postal delivery
in US 7 lost mails per hour 20,000 lost mails per hour
Surgical 1.7 incorrect surgical 5,000 incorrect surgical
operations in operations per week operations per week
US
Flight One short or long landing at Two short or long landings at
landings in major airports each year most major airports daily
US
Drug 68 incorrect drug 200,000 incorrect drug
prescriptions prescriptions each year prescriptions each year
in US
What is Your Quality Level?
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21. A Great Layout Reduces Costs
• An effective layout reduces your costs, improves your quality and keeps
your team working on what they do best, build and assemble wall curtains.
• Real life Ex: Aerospace client. Total Travel Distance for all components
including Sub Assembly, Final Assembly in a 5000 sq/ft facility. Each
assembly is $1.5MM!
• 122,610 inches
• 10,217.5 feet
• 1.9 miles for each major assembly
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22. Typical Spaghetti Diagram of work flow for one part
HAI - Current State Layout
Travel Distance:
Assy workbench 25
At all work benches: 1 ethernet drop
1 120 circuit
Test workbench 30
9,684 inches
Why a good 807 feet
.15 miles
Inspection Station 4
layout is
Office
Phase 2 expansion
10 sq. ft.
6"
Cabinet Recycle &
important VSDL Quad Shred Bin OPEN OPEN
12 SCREENS belt oven and small oven Eye wash
3 Hot Air Reflow Cabinet
Machine
VISD 23 sq. ft. 14 sq. ft. Fridge
114 sq. ft.
TO SHIPPING
Super
Cart RUTH TAM
Thermotron
Super
Cart
Card Mechanical OPEN
OPEN OPEN
RICK Assembly
3ph, 400Hz, 120V, 20A
outlet 4 3 2 17
1 CART JAD EMIL
“Depot 1” Cabinet Binford Rack
3ph, 208V, 20A
18
Binford ROBERT
RAMIL
9 sq. ft. 17 sq. ft. 3ph, 208V, 20A QA In
VMULT CCA MODULE TEST 17 sq. ft. CART CART CART Dry Erase
8 „ between stations OPEN Board
8'-0"
Rack
CART CART CART QA Out
8 Rack Rack MICHAEL
1'-4"
Wire
Rack DON DANEL
VMULT
“Depot OPEN OPEN OPEN ERIC SCC Bench
Rack
11
6” 5
9
7
Tools Open JIM
Cable work Cell
ANNE
Cabinet 10MHz
CART
VSYNTH 12 11 10
“Depot 4” Cabinet Rack
CART
9 sq. ft.
9
9 sq. ft.
CART
VBIM Cabinet
“Depot 5” OPEN OPEN
9 sq. ft. Rack CCA MODULE TEST
CART CART
7 „ between stations
CART
Wire
Rack
Pat
“Depot 3”
16
VBIM
3ph, 400Hz, 120V, 20A
CART
outlet Cabinet OPEN OPEN SIMON Julie
13 SANG SCC Bench
3ph,60Hz 208V, 30A 14 15
outlet 9 sq. ft. VMPE
Spray cool assembly
CART CART CART CART CART CART 7' between rows 4'-4 3/16"
FRED Shred
Rack Bin QA
Cabinet Cabinet Cabinet
VPEM
Hold
CART
Wire Rack OVEN
Pat ROMEO OPEN CART
MRB CART CART CART CART CART CART Cabinet
VWPF Rack
Warren 3 Workstations to
“Depot 8” Flam accommodate
CART
Humi touch up
CART mabl
CART
Cabinets
Min. Req.:
e ethernet drop,
VMULT TEST
VSDL
standard 120
“Depot 9” Rack Freq power,
AATS Testing Cabinet compressed air,
Stamping /
4 desks Part Marking
and one needs a
VMULT TEST
11 Binford 3 racks
“Depot 10”
WIP hood connection
Cabinets
1 cart
3ph, 208V, 20A Cabinet
Ladder
Step
20 sq. ft. 182 sq. ft.
Rack
2 Workstations to
3ph, 400Hz, 120V, 20A accommodate
OPEN
outlet WIP
10'-10 5/8"
3ph,60Hz 208V, 30A Need ethernet Occupancy – 6 max, 2 typical.
RICK
outlet drop and each
Dry 10 foot ceiling
bench needs
Era
VIFD2 Test
power
“Depot 11”
se
Boa
rd Dry Erase
Vapor Degreaser
Board
230 V 3KW
BOBBI
Vapor Bath Tank
Cabinet BSSE 115 V 1.5KW
VIFD2 Test 3ph, 208V, 20A
“Depot 12” 6 sq. ft. 20 sq. ft.
1 square = 2.5' in 33%
view
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23. Improved flow reduces waste and costs!
HAI – “CCAT” Layout
ELECTRICAL
AREA
Travel Distance:
CART
CART
DO
NOT Assy workbench 25
BLOCK At all work benches: 1 ethernet drop
1 120 circuit
KIT
KIT
5,414 inches
CART
CART KIT Test workbench 30
CART DO OVERFLOW
451 feet
NOT STAGING
BLOCK & New Assembly Bench
CART KIT CART
CART KITTING
WIP
.09 miles
Inspection Station 4 New QA/QC Bench
CART KIT
CART HANGERS CABINET CABINET SOILED
BIN
GOWNING
LOCKERS
DO Office AREA
Phase 2 expansion New Test Bench
NOT
HANGERS
KIT
KIT
10 sq. ft. BENCH
BLOCK
CART
CART
LOCKERS
Cabinet
DO DO DO DO DO DO DO DO
4 3 2
CART
NOT NOT NOT NOT NOT NOT NOTNOT
DO DO
BLOCK BLOCK BLOCK BLOCK BLOCK BLOCK BLOCK
BLOCK
NOT NOT
BLOCK BLOCK
CART
Rack Rack Rack
Cabinet 1
CART Card Mechanical
Cabinets
Assembly 9 sq. ft.
PC
Cable work Cell or Cable work Cell or CCA MODULE TEST
CART Mechanical Assy Mechanical Assy Cabinet 10 „ between stations
Cabinets
3ph, 400Hz, 120V, 20A 9 sq. ft.
PC
outlet DO QA Out DO 8
NOT NOT
11
BLOCK
CART
BLOCK 5 9
7
Cabinet
CART
Rack
QA In
14'-1 1/2" 10MHz
Tools 12 11 10
VMULT TEST
CART Wire DO
“Depot 9”
Rack
NOT
Shred BLOCK
New Rack
Bin 9
CCA MODULE TEST
CART
“Depot 10” DO CART 11 „ between stations
Rack NOT Super Super QA
VMULT TEST MRB 18
BLOCK Cart Cart Hold
11'-3 1/4"
CART
STAMP / Rack
VIFD2 Test
“Depot 11”
PART MARK
NEW
PART MARK
NEW
Cabinet
STAMP /
CART
Rack Binford 16
FLOOR STOCK Rack 3ph, 208V, 20A 9 sq. ft. NEW
WIP 17 sq. ft.
DO
CART NOT
VIFD2 Test Cabinet Rack
BLOCK
Rack
“Depot 12”
1'-0"
13
9 sq. ft. 14 15
DO SCC BENCH VMPE
17
NOT Binford
CART ASSY Rack DO
BLOCK 3ph, 208V, 20A
3ph, 400Hz, 120V, 20A Wire STAGING NOT
VPEM
Rack 20 sq. ft.
outlet BLOCK
FLOOR STOCK
6'-2 3/16"
3ph,60Hz 208V, 30A WIP
WIP
outlet Recycle &
SCC BENCH CART 72 sq. ft. Shred Bin
CART Wire Rack Dry Erase Board
11
VWPF Cabinet Cabinet
“Depot 8”
Rack Cabinet BinfordCabinet
3ph, 208V, 20A
DO 17 sq. ft. sq. ft.
6
Cabinet Cabinet Cabinet
NOT
“Depot 3”
DO DO DO BLOCK DO DO DO
VBIM
DO DO DO
NOT NOT NOT NOT NOT NOT OVEN
NOT NOT NOT
BLOCK BLOCK BLOCK BLOCKBLOCK BLOCK
BLOCK BLOCK BLOCK
3 Workstations to
Flam accommodate
Humi touch up
Rack mabl
VBIM Dry Erase Board
DO Min. Req.:
VSDL e
“Depot 5” CART CART CART CART CART CART DO NOT ethernet drop,
standard 120
Freq NOT BLOCK power,
DESK
AATS Testing BLOCK compressed air,
Rework
DO
Test
and one needs a
NOT hood connection
“Depot 1”
6”
“Depot BLOCK CART CART CART CART CART CART
12
VMULT
3ph, 400Hz, 120V, 20A Occupancy – 6 max, 2 typical.
outlet Dry Erase
TEST STAGING 10 foot ceiling
3ph,60Hz 208V, 30A WIP
DESK
Board
VMULT
outlet Rack Test
Rack
DO DO Rework
NOT DESK DESK NOT Vapor Degreaser
BLOCK BLOCK 230 V 3KW
Vapor Bath Tank
VSYNTH
“Depot 4”
Thermotron 115 V 1.5KW
Ladder
BSSE
Step
Cabinet 3ph, 208V, 20A
Rack
20 sq. ft. NEW
9 sq. ft.
1 square = 2.5' in 33%
view
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24. Real Life Cost Reductions
Original Jan 2010 Jan 2011
Touch Time 4221 hrs 2448 hrs 1737 hrs
(VA)
Burden Rate $67 $67 $67
Cost / $282,807 $164,016 $116,379
Chassis
Savings / - $118,791 $166,428
Chassis
Savings / - $5,939,550 $8,321,400
Year
(50 chassis)
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25. Sample Project Results: Annual savings
from plant consolidations for a real
Manex Client
.
….and a further $3,390,000 is the next five years!
All Content © Copyright 2012, Manex Consulting 25

26. Proof That “Lean Systems” Work
It does not matter what business you are in, going Lean will
drive up the bottom line
1. Medical device manufacturer is growing sales 80% over 2008
2. Accessories manufacturer increased net income more than 20%
3. Contract manufacturer doubled their market share and increased
prices by 8%
4. Food company achieves over $400k in sales per employee, best in
class
5. Division of aerospace company increased sales by 700% over past
24 months
6. Automotive supplier achieves 38% EBITDA
7. OEM supplier awarded a $7MM contract due to Lean
implementation
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27. Typical Operations Accomplishments
• Improved utilization of personnel by 20%
• Improved machine utilization by 40%
• Reduced Non Value added operations by 40%
• Provided the training for an informed and empowered
work force for Continuous Improvement Programs
• Typical ROIs on Kaizen events and training is 6:1
• “Train the Trainer” format utilized for optimal
knowledge transfer
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28. Contact Information
Bill Browne
Director of Client Services
925.807.5103
925.997.0004
wbrowne@manexconsulting.com
Greg Cho
Senior Consultant
415-601-8225
gcho@manexconsulting.com
All Content © Copyright 2012, Manex Consulting 28