The document outlines an "Island of Excellence" improvement process for machine performance. It involves forming dedicated teams to focus on safety, housekeeping, maintenance and continuous improvement activities. The goals are to achieve significant performance results in the short term through these focus areas, and sustain world-class performance levels in the long term.

1. Island of Excellence Safety Housekeeping Results Oriented Maintenance Continuous Improvement Activities Short Term Results Long Term Results

2. Island of Excellence A Focused Reliable Method to Elevate Machine Condition and Performance to Sustainable World Class Levels Break away from the “Status Quo” No more of the “Same Old, Same Old”

3. Island of Excellence An improvement process: Focused events with a dedicated team Machine condition and performance - achieve significant results in a short period of time Phase 1 – Manufacturing Basics Ensure that machine and processes are safe, clean, organized, well maintained and capable of achieving world class performance results Safety, Housekeeping & Results Oriented Maintenance Phase 2 – Performance Results Sweet Spot Analysis / Top Speed – Non Stop Set Up Reduction Downtime Reduction Continuous Improvement

4. Island of Excellence Goals: 1st Year - 2009 - Be the best in (Plant Name) Machine Expectations = 75% or better (see assessment) Performance = 100% of Process Reliability Standards 2nd Year - 2010 Machine Expectations = 100% or better (see assessment) Performance = World Class

5. Create Dedicated Team Dedicated team for each machine: Machine Operators Machine Maintenance Champion Machine Supervisor One Manager – GM, PM, Supt, QM, PRM, SM, CSM, etc. Facilitator – may be an outside resource NOTE – All team members should receive Machine Specific LOTT Training Prework: Machine Goals Machine Performance Charts Machine Specs Top Orders

6. Expectations Safety Housekeeping Results Oriented Maintenance Continuous Improvement Activities Short Term Results Long Term Results Team will complete an Island of Excellence Assessment to benchmark current condition and create an Action Item List identifying opportunities to improve machine and processes

7. Safety Machine is configured to be as safe as possible Guards, Curtains, Safety Signage, Organization, etc. Safety Reliable Methods are a way of life Standard LOTT Design, Boards & Training Procedures JSAs at machine and understood / followed by all No duct tape or baling wire on machine these are a symptom of something that has not been corrected properly The goal is ZERO incidents Safety Incidents can cause unnecessary pain and suffering and reduce machine productivity Most Safety Incidents occur in “Upset Conditions” The elimination of upset conditions will improve Safety and Productivity Safety must never be compromised for productivity

8. Safety

9. Housekeeping A Place For Everything & Everything In Its Place Machine Area Layout – indicating proper layout and location of LOTT Board, scrap, waste cans, tools, cutting dies, printing plates, equipment, etc All tools readily available with a designated place The Machine “Sparkles”… Clean Surfaces Buff Paint Proper Lighting Deep Cleaning

10. Housekeeping – Machine - External Before After

11. Housekeeping – Machine - Internal Before After

12. Housekeeping - Organization

13. Results Oriented Maintenance Team approach b/w Maintenance & Operations Machine Maintenance Champions Maintain OEM (Original Equipment Manufacturer) Condition Essential Equipment Care Housekeeping, Lubrication, Preventive Maintenance, Calibration don’t just repair the problem - determine root cause of failure & eliminate PM’s Scheduled & Completed on Time Document all Work with Work Orders Plan & Schedule all Non-Emergency Work Maintenance Planning Meeting Use History to Improve the Quality of PM’s Condition Monitoring All machine controls & gauges are clearly and professionally identified The ultimate objective is zero unplanned downtime

14. Condition Monitoring

15. Condition Monitoring

16. Continuous Improvement Activities Goals Performance Ratio, Downtime, Speed, Set Up Time, Waste, etc. Performance Tracking Charting at Machine LED’s Recognition & Accountability Crew Meetings - Action Plans Daily Downtime Meetings (if DT over target level) Machine Calibration & Centerlining Top Speed - Non Stop

17. Phase One – Manufacturing Basics Island of Excellence Assessment Benchmark current condition and performance Measure Improvement Action Plan What needs to be done, by when and by whom Flipcharts at machine Crew Meetings Follow up with Action Plan during regularly scheduled crew meetings

18. Phase 2 - Top Speed - Non Stop Agree on Machine Capability Machine Specs Sweet Spot Analysis Identify machine Sweet Spot Identify Top 10 Orders by quantity & frequency Choose “Focus Jobs” from Top 10 orders that fall within the Sweet Spot Sweet Spot Analysis results should be used by Sales & Customer Service to better understand whether a job runs with higher or lower productivity and by scheduling to determine which machine is best for each order

19. Sweet Spot Analysis Width (Machine Direction) Length (Cross Machine Direction) Out of Machine Capability Reduced Rate Sweet Spot – Max Speed 0-15 15-25 25-35 35-45 45-55 55-65 65-75 75-85 95-97 97+ 0-10 10-15 10 15-20 3 20-25 2 1 9 25-30 8 30-35 6 35-37 5 4 37-48 7 48+

20. Phase 2 - Top Speed - Non Stop Top Speed Non Stop Goal is to run top sweet spot orders at top machine speed with minimum downtime (without affecting safety & quality) Effective preparation is key: Safety, Housekeeping and Preventive Maintenance must be addressed ahead of time Orders must be scheduled, cutting dies and printing dies must be in good condition, and all materials must be ready to go Increase speed incrementally to identify issues and eliminate – keep detailed log during process – “Hit the Fast Button”

21. Phase 2 - Top Speed - Non Stop Top Speed Non Stop The exercise should show that significant performance improvement is possible if everything is organized effectively and machine speeds are pushed The challenge is to get the processes in place to be able to sustain top speed on an ongoing basis in future

22. Short Term Results Safe, Clean and Organized Machine & Area Zero Safety Incidents 100% or greater Machine Performance Ratio Downtime - less than Process Reliability standard Speed - greater than standard Set Up Time - less than standard

23. Long Term Results Single Digit Downtime Machine & Process Downtime under 5% for Corrugators & under 10% for Finishing Average 75% of maximum machine speed Single minute Set Up Time Zero No Stock Downtime

24. Island of Excellence – Top Speed Non Stop BEFORE

25. Island of Excellence – Top Speed Non Stop AFTER

26. The Path To Excellence

27. Island of Excellence – Top Speed Non Stop Before After!

28. Your Island of Excellence

29. Island of Excellence

30. Contact Information The Box Doctor 46 Years Experience - LLC Roger M. Maxson 475 Maplebrooke Dr. West Westerville, Ohio 43082 Office/Home 614-899-0473 Cell 614-406-6145 Fax 614-899-9329 E-Mail: [email_address] [email_address] [email_address] Web Site: www.MaxsonContainerConsultants.com Skype # roger.maxson