BENEFITS OF A “CI/Lean” CULTURE

Rick Foreman

Who is Federal Heath Sign Company?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 SupportNationwide Support

Markets ServedMarkets ServedAutomotive

Finance

Gaming

Hospitality

Corporate Identification/Custom

Petroleum

Restaurants

What are the Possibilities?What are the Possibilities?

• Profitable Growth in a challenging economic environment?

“CI/Lean” Culture Change“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“CI/Lean” Culture Change

Gemba

CEO & Sr. Mgmt

Middle Mgmt

Team

SERVANT LEADERSHIP STYLE SUPPORT

ENGAGE-CONNECT-INFLUENCE

ENGAGE-CONNECT-INFLUENCE

Customer & Stakeholder Satisfaction

Deployment/Sustain StrategyDeployment/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?Are We Winning? Was it a good day?

What Do We See?

• Engage through visual examples/stories outside of work environment

Engagement/AccountabilityContinuous Improvement

Tasks Owner

Comments / Results / Why? / Reducing-Eliminating Which

Waste?

Re-arrange saw in metal area to be parallel to iron worker. Review need of rack in between metal fab & weld (more of a catch-all & labeling not close to actual condition)

11-Nov

7-Jan

3-Jan Sam

Open up flow from metal fab into weld area By opening this area up we saved 23ft per trip average 8 times a day saves 184ft a day.

Consolidate / remove storage racks in the receiving area to provide ample space for inbound freight without blocking the aisle . This requires extra travel distance for lifts / buggies carrying product to areas of the shop

17-Dec

7-Jan

15-Jan Tony

Eliminate conveyance / Wasted motion Keeps the aisle clean so we do not have to move something to get down the aisle opening up 143 sq ft of floor space

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.