SlideShare a Scribd company logo
Lean Manufacturing
& EHS Performance
1
One Family. One Team.
Charter Manufacturing Company
Corporate Structure
• Established in 1936
• 4th Generation Family
Owned
• Headquarters in Mequon
• 1900 employees (900 in
WI)
Charter Manufacturing
Company, Incorporated
Charter Steel
1978
Charter Automotive
1948
Charter Wire
1936
Saukville, WI
Cleveland, OH
Fostoria, OH
Milwaukee, WI
Litchfield, U.K.
Wuhu, China
Milwaukee, WI
Dura Bar
2012
Woodstock, IL
York, PA
Salisbury, NC
Charter Manufacturing Company
Common Threads Across the Divisions
• Engaged Workforce
– Driven by a culture of respect, trust, transparency
open communication, and family orientation
• Continuous Improvement Mindset
– Gainsharing programs, self directed work teams,
bottoms up problems solving, and a formal
continuous improvement department are examples
of the company’s commitment to improvement
• Stable ownership that is willing to reinvest
– Company has reinvested $500 million in last 12 years
• A Will to Grow
– Company has grown 11% a year for 20 years
Charter Steel
Founded 1978
• 2 Fully Integrated Wire Rod
Steelmaking Facilities
– Saukville ,Wisconsin
– Cleveland , Ohio
• 2 Full-Service Coil Processing
and Distribution Centers
– Saukville, Wisconsin
– Fostoria, Ohio
Saukville, Wisconsin
Cleveland, Ohio
Fostoria, Ohio
History of Continuous
Improvement
• Statistical Process Control in 1988
• ISO 9001 in 1994
• QS 9000 in 1998
• ISO 14001 in 1999
• TS 16949 in 2004
• OHSAS18001 in 2008
• Continuous Improvement Department
established in 2003
– Response to Customer Demands (eg- “Zero
Defects”)
– Staff Level Department
– Six Sigma, 6 Black Belts, 39 Green Belts to date
The Continuous Improvement Department
• Lean Tools
– Process flow improvement
• 5-S’s
– Workstation, work area optimization
• Root Cause Analysis
– Failure of parts, Physical, Human, Latent roots
• Orange Belt
• Six Sigma BB/GB
– Metric
– Methodology
– Vision
What is Lean Manufacturing?
• “A systematic approach to identifying and
eliminating waste (non-value-added
activities) through continuous
improvement by flowing the product at the
pull of the customer in pursuit of
perfection”
• Utilizing less inputs to create the same
outputs
– elimination of waste
– cost reduction
– employee empowerment
Lean Tools
8
What the 5S’s Stand For
• Sort - sort through, then sort out
– If you haven’t used it in the last 30 days or plan to in the next 30 days. Get rid of it!
– “When in doubt, move it out!”
• Straighten - organize what must be kept
– Arrange by frequency of use
– Visually marked / specified place for everything
• Sweep - everything that remains
– Clean and inspect equipment, tools, manuals, and workplace
– Visually sweeping the area to instantly tell what is missing or misplaced
• Standardize – standardize current practices
– Procedures, checklists, cleaning schedule
• Sustain - discipline to stick to the rules and make them a habit
– Accountability & Audits
Waste is all
around us…
But so is
opportunity!!
Hose
s
???
Damage
from jeep
poles
Waste in Manufacturing
is Usually Disguised as:
 Scrap/Rework
 Machine Setups and
Downtime
 Supplier Lead Times
 Inventories
 Lost Time/Injury
Accidents
 Material Handling
 Inspection
 Inventory Storage
 Product Test
 Counting Inventory
 Order Processing
Time
5S Guideline #1
Leaders must lead!
Everyone must be involved without exception!
5S applies to the office and shop floor
“Paves the approach” for all other improvements
Before/After 5S
13
Supervisor’s
Balcony
14
Before/After 5S
Storage Racks
15
Before/After 5S
Die Shop
Break Room…
16TRUST TEAMWORK SAFETY CONTINUOUS IMPROVEMENT
17
Preventing Things from Getting Dirty!
10/27/2015 185S Training
Preventing Things from Getting Dirty!
Universal Waste Management
TRUST TEAMWORK SAFETY CONTINUOUS IMPROVEMENT
Universal Waste Storage 5S
TRUST TEAMWORK SAFETY CONTINUOUS IMPROVEMENT
Additional Tools
• Six Sigma – DMAIC – Green/Black Belts
– Variation
– Control your inputs
– Best for defined processes
• Quick Change/Orange Belt
TRUST TEAMWORK SAFETY CONTINUOUS IMPROVEMENT
Additional Environmental
Performance Enhancements
• Energy efficiency
• Raw materials efficiency
• Inventory management
• Waste reduction
• Continuous Improvement Culture
January 14, 2015 Company Confidential 22

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Matt Schroeder, Charter Steel, Lean Manufacturing and EHS Performance, Midwest Environmental Compliance Conference, Chicago, October 29-30, 2015

  • 1. Lean Manufacturing & EHS Performance 1 One Family. One Team.
  • 2. Charter Manufacturing Company Corporate Structure • Established in 1936 • 4th Generation Family Owned • Headquarters in Mequon • 1900 employees (900 in WI) Charter Manufacturing Company, Incorporated Charter Steel 1978 Charter Automotive 1948 Charter Wire 1936 Saukville, WI Cleveland, OH Fostoria, OH Milwaukee, WI Litchfield, U.K. Wuhu, China Milwaukee, WI Dura Bar 2012 Woodstock, IL York, PA Salisbury, NC
  • 3. Charter Manufacturing Company Common Threads Across the Divisions • Engaged Workforce – Driven by a culture of respect, trust, transparency open communication, and family orientation • Continuous Improvement Mindset – Gainsharing programs, self directed work teams, bottoms up problems solving, and a formal continuous improvement department are examples of the company’s commitment to improvement • Stable ownership that is willing to reinvest – Company has reinvested $500 million in last 12 years • A Will to Grow – Company has grown 11% a year for 20 years
  • 4. Charter Steel Founded 1978 • 2 Fully Integrated Wire Rod Steelmaking Facilities – Saukville ,Wisconsin – Cleveland , Ohio • 2 Full-Service Coil Processing and Distribution Centers – Saukville, Wisconsin – Fostoria, Ohio Saukville, Wisconsin Cleveland, Ohio Fostoria, Ohio
  • 5. History of Continuous Improvement • Statistical Process Control in 1988 • ISO 9001 in 1994 • QS 9000 in 1998 • ISO 14001 in 1999 • TS 16949 in 2004 • OHSAS18001 in 2008 • Continuous Improvement Department established in 2003 – Response to Customer Demands (eg- “Zero Defects”) – Staff Level Department – Six Sigma, 6 Black Belts, 39 Green Belts to date
  • 6. The Continuous Improvement Department • Lean Tools – Process flow improvement • 5-S’s – Workstation, work area optimization • Root Cause Analysis – Failure of parts, Physical, Human, Latent roots • Orange Belt • Six Sigma BB/GB – Metric – Methodology – Vision
  • 7. What is Lean Manufacturing? • “A systematic approach to identifying and eliminating waste (non-value-added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection” • Utilizing less inputs to create the same outputs – elimination of waste – cost reduction – employee empowerment
  • 9. What the 5S’s Stand For • Sort - sort through, then sort out – If you haven’t used it in the last 30 days or plan to in the next 30 days. Get rid of it! – “When in doubt, move it out!” • Straighten - organize what must be kept – Arrange by frequency of use – Visually marked / specified place for everything • Sweep - everything that remains – Clean and inspect equipment, tools, manuals, and workplace – Visually sweeping the area to instantly tell what is missing or misplaced • Standardize – standardize current practices – Procedures, checklists, cleaning schedule • Sustain - discipline to stick to the rules and make them a habit – Accountability & Audits
  • 10. Waste is all around us… But so is opportunity!! Hose s ??? Damage from jeep poles
  • 11. Waste in Manufacturing is Usually Disguised as:  Scrap/Rework  Machine Setups and Downtime  Supplier Lead Times  Inventories  Lost Time/Injury Accidents  Material Handling  Inspection  Inventory Storage  Product Test  Counting Inventory  Order Processing Time
  • 12. 5S Guideline #1 Leaders must lead! Everyone must be involved without exception! 5S applies to the office and shop floor “Paves the approach” for all other improvements
  • 16. Break Room… 16TRUST TEAMWORK SAFETY CONTINUOUS IMPROVEMENT
  • 17. 17 Preventing Things from Getting Dirty!
  • 18. 10/27/2015 185S Training Preventing Things from Getting Dirty!
  • 19. Universal Waste Management TRUST TEAMWORK SAFETY CONTINUOUS IMPROVEMENT
  • 20. Universal Waste Storage 5S TRUST TEAMWORK SAFETY CONTINUOUS IMPROVEMENT
  • 21. Additional Tools • Six Sigma – DMAIC – Green/Black Belts – Variation – Control your inputs – Best for defined processes • Quick Change/Orange Belt TRUST TEAMWORK SAFETY CONTINUOUS IMPROVEMENT
  • 22. Additional Environmental Performance Enhancements • Energy efficiency • Raw materials efficiency • Inventory management • Waste reduction • Continuous Improvement Culture January 14, 2015 Company Confidential 22