Implementing & Sustaining Kaizen The Polaris Way

SreeRam Mangalampalli

Lean Operations Manager

Polaris Industries

Polaris Industries

Roseau Operations

Lean Journey

Kaizen Approach Daily Management

Strategic Management

The Kaizen Process

Resources

Sustainability

Challenges

Agenda

LEAN2012.COM

Canada 14%

International

16%

United States

70%

• Manufacturer of high-performance motorized products

• Strong distribution channel – 1,500 dealers in North America

– 1,000 dealers Internationally

• Productive non-union workforce – 4,400 strong

• Stakeholder focus – Product innovation for customers

– Profit sharing for employees

– Dividends / growth for investors

Off-Road Vehicles

(ORV) 69%

On-Road

Vehicles 5%

Snowmobiles

11%

Parts Garments

& Accessories

15%

ATVs

Side-by-

Sides

Key Facts 2011 Sales by Product

Sales 2011 Sales by Geography

LEAN2012.COM

Record Financial Results

• Sales top $2B for 1st time, up 33% to record $2.66B

• Net Income up 55% to $228M; EPS up 50% to $3.20

• Gross Margins up 130 bps to 27.9%

• Net Income Margins up 120bps to 8.6%

Expanded Global Reach

• Opened a plant in Monterrey, Mexico in 2011; >22k high-quality vehicles produced

• International business grew 39%, strong, experienced leaders in place to expand growth

• European HQ established in Rolle, Switzerland

Exceptional Growth Across all Business Units

• ORV continued to gain momentum, extended market share lead

• Military business more than doubled in size, ended 2011 with record backlog

• Victory profitably increased sales and share, climbed to #2 in its segment

Acquisitions Fueling On-Road Growth

• Indian: Redemption of iconic brand

• GEM: Electric people mover leader

• Goupil: Electric light duty hauler leader

LEAN2012.COM

North America ORV Market Share

0%

5%

10%

15%

20%

25%

30%

35%

2005 2006 2007 2008 2009 2010 2011

Arctic Cat

Can Am

Deere

Honda

Kawasaki

Kubota

Polaris

Suzuki

Yamaha

LEAN2012.COM 6

Roseau Operations • Produce approximately 700 units/day

– Snowmobile - 1 Line, 1 Shift (Batch) – ATVs - 1 Line, 2 Shifts, (Mixed Model) – RZR - 1 Line, 2 Shifts, (Mixed Model) – W.I.P. Inventory Turns – 72+

• Key Processes – Assembly – Metal Paint – E-Coat, Powder – 2 shifts – Plastic Paint – Liquid w/Clear Coat – 2 shifts – Weld – Steel & Aluminum Pulse MIG Welding, 28 Robotic Cells, 3 Self

Piercing Rivet Cells – 3 shifts – Tube Fab – Laser Cutting & Tube Bending –(24/7) – Injection Molding – 11 presses Ranging from 400 Ton to 3950 Ton (24/7)

• Nearly 716,000 sq ft - 66,516 sq meters – 543,200 sq ft – mfg – 50,463 sq meters – 96,000 sq ft – engineering – 8,918 sq meters – 76,800 sq ft – plastic injection – 7,135 sq meters

• 1148 employees (mfg), 229 (temps), 225 (eng) – 1780 total

LEAN2012.COM

Lean Journey • Mid 1990s

– Partners in Continuous Improvement

– Total Quality Management

– Rapid Growth

– Avoid Exponential Hiring

– Training Employees

– Empowering Employees

– Cell Teams

– Waste and 5 Pillars

• 2008

– Toyota Production System

– Lean Operations Manager

– Consultant Visit

– University of Kentucky

– Operational Excellence

– Tracking Ideas/ Kaizens

– Value Stream Mapping

– A3 Sheet problem solving

– 3P (Production Preparation Process)

Some of the terminology stills exists in our culture

LEAN2012.COM

Polaris Kaizen Approach

8

STRATEGIC

PLAN

GOAL

DEPLOYED

POLICIES

VALUE

STREAM

MAPPING

KEEPING

OUR KAIZEN

EFFORTS

FOCUSED

DAILY

MANAGEMENT

KPI’s

With limited resources we need to keep our Kaizen activity

“Focused” on our Top Priorities

Maximum Waste

Reduction

LEAN2012.COM

2 Way approach

9

Strategic Management • GDP

• CI Plan

• Value Stream Mapping

• Kaizens and Projects

Daily Management

• Ideas

• Daily Problem

Solving/ KPI Focus

Overlap

LEAN2012.COM

DAILY MANAGEMENT

10

LEAN2012.COM

Ideas and Projects • Empowering

Employees

– Improve Key Process Indicators (KPIs)

– Ideas

• Cards

• Newspaper

• SharePoint

11

LEAN2012.COM

Statistics

LEAN2012.COM

Operational Excellence Boards

Yearly

Objectives

Plant

Safety

Key Process Indicators

Safety, Quality, Delivery and

Productivity

Status & Paretos

Ideas

Implemented

By Month

Kaizen Actions

Team Leaders

Hours off line

on projects

Group Leader’s

Version

Daily

Production

Summary

Report

LEAN2012.COM

STRATEGIC MANAGEMENT

LEAN2012.COM

Continuous Improvement Plan

• CI Plan

– Strategic projects/ GDP Goals

– Priorities of Focus

– Key Process Indicators (KPI)

• CI Roadmap

– Kaizen events in each bucket

– Aligned and prioritized

– Assigned owners

– Assigned project leaders

15

LOCATION Department Planned

12-month

Savings

Actual

Savings

(Calendar)

$ - $ - Start

Date

Compl.

Date

KPI Quality Roseau ORV Assembly Routings (Vent Lines and Coolant Lines) Closed Dan Tate Matt Kvien Jared Evans 5/1/2011 6/30/2011

KPI Quality Roseau ORV Assembly Throttle Cable Routing Active Dan Tate Matt Kvien Bob Moser 4/15/2011

KPI Quality Roseau ORV Assembly Missing fasteners in Hardware bags Active Dan Tate Shane Jobman Bob Moser 3/15/2011

KPI Quality Roseau Line C/ Sled Assembly Start-up Changeover verification Closed Bill Miller Keith Buley Wendy Sikorski 3/14/2011 9/30/2011

KPI Quality Roseau Line C/ Sled Assembly Handle Bar Assembly Closed Bill Miller Steve Erickson Dave Reed 3/1/2011 5/31/2011

KPIQuality

RoseauLine C/ Sled Assembly Critical Routings Process and Review

ClosedBill Miller Joel Brichacek Dave Reed

2/14/2011 7/7/2011

KPI Productivity Roseau Line C/ Sled Assembly Gluing and Chasis Area Closed Bill Miller Keith Buley Multiple 2/14/2011

Line C Rail Line Area Closed Cycle Time Bill Miller Art Moen Lynn Kostrzewski 1/25/2011 1/28/2011

Chassis Gluing Area Closed Capacity Bill Miller Keith Buley Lynn Kostrzewski 2/15/2011 6/14/2011

KPI Quality Roseau Plastics Injection Molding Purging process establishment to reduce contaminationClosed

Harley McMillin Nick Erickson1/1/2011 2/28/2011

KPI Quality Roseau Plastics Injection Molding Cleaning Barrel and Screw process to reduce contamination Closed Harley McMillin Jamie Lisell 3/1/2011 4/30/2011

KPI Safety Roseau Plastics Injection Molding Degating Process and improve knife safety Active Harley McMillin Jamie Lisell 5/1/2011 6/30/2011

KPI Safety Roseau Plastics Injection Molding Implementing Magnetics on smaller presses Brainstorming Harley McMillin Jamie Lisell 7/1/2011 8/31/2011

KPI Quality Roseau Plastics Injection Molding Changing to improved TPO to improve processes Active Harley McMillin Nick Erickson 9/1/2011 10/31/2011

GDP Mfg. Realignment Roseau Materials Tube Fab Move Planning, Testing and Shipping Closed Jane Evans MaryJo Oslon None Ongoing 8/25/2011

GDP Mfg. Realignment Roseau Materials Osceola Transition parts/ Vendors Planning Active Jane Evans MaryJo Oslon None Ongoing Ongoing

GDP Mfg. Realignment Roseau Materials Monterrey/ S.L. Outbound Transitions Closed Jane Evans Maureen Langus None Ongoing Ongoing

KPI Material Flow Roseau Materials Internal Material Flow Strategy Active Jane Evans Glen Limesand/ Paul Gummeringer 1/13/2011

Internal Material Flow Strategy Planning Closed Jane Evans Glen Limesand/ Paul GummringerSreeRam Mangalampalli 1/13/2011 3/21/2011

Internal Picking Process Active Jane Evans Darby Dokken Robert Kulig 3/21/2011 5/31/2011

Plastic Plant-More Frequent Delivery of Parts Closed Jane Evans Paul Gummeringer Robert Kulig 3/26/2011 5/31/2011

South Wall Organization Active Jane Evans Glen Limesand/ Paul GummringerLynn Kostrzewski

Driver dedicated to Dunnage Closed Jane Evans Glen Limesand/ Paul Gummringer 8/25/2011

Parts Ordering Process Active Jane Evans Glen Limesand/ Paul GummringerSreeRam Mangalampalli 1/13/2011 2/24/2011

Implementation of Kanban Queuing system Planning Jane Evans

Rear Shock Sub Assembly Hot Calls reduction Active Dan Tate Shane Jobman 8/1/2011

KPI Material Flow Roseau ORV Assembly Parts Presentation in Line A Active Dan Tate Dwight Ruud Multiple 11/20/2010 3/31/2011

Empty Carts Process and Prioritization of Areas Closed Dan Tate Dwight Ruud SreeRam Mangalampalli 11/22/2010 11/22/2010

Hubs and Shafts Area Closed Dan Tate Shane Jobman Robert Kulig 11/29/2010 12/2/2010

Radiators Area Closed Dan Tate Matt Kvein Robert Kulig 12/6/2010 12/9/2010

Brakes Area Closed Dan Tate Mike Klien Lynn Kostrzewski 12/13/2010 12/14/2010

Outer Clutch Cover Closed Dan Tate Matt Kvein Lynn Kostrzewski 1/12/2011 1/12/2011

Side Panels Closed Dan Tate Mike Klien Lynn Kostrzewski 2/9/2011 2/10/2011

Engines Assembly Line Closed Dan Tate Matt Kvein Lynn Kostrzewski 6/28/2011 6/30/2011

Water Spider Concept Active Dan Tate Robert Kulig Robert Kulig 9/19/2011

Line A Section 3 Active

Sequencing Tires to Line A Active Dan Tate Dwight Ruud MaryJo Olson

KPI Material Flow Roseau ORV Assembly Parts Presentation in Line B Active Dan Tate Shane Jobman 2/4/2011 5/1/2011

Prioritization of areas Closed Dan Tate Myles Hogenson SreeRam Mangalampalli 2/4/2011 2/4/2011

Supply Tech Areas 411 and 501 Closed Dan Tate Beth Abrahamson Robert Kulig 2/14/2011 2/15/2011

Shocks and Springs Area Closed Dan Tate Shane Jobman Lynn Kostrzewski 2/22/2011 2/24/2011

Gas Tank Hoses Area Closed Dan Tate Josh Broten Lynn Kostrzewski 3/1/2011 3/3/2011

Control arm Trailing arm Brakes area Closed Dan Tate Shane Jobman Lynn Kostrzewski 3/22/2011 3/24/2011

Rear Shock Sub-Assembly Consolidation Closed Dan Tate Shane Jobman Lynn Kostrzewski 4/11/2011 4/15/2011

Crating Area Active Dan Tate Dave Reed SreeRam Mangalampalli 6/10/2011 6/14/2011

s Line A moving south Closed Dan Tate Dave Reed SreeRam Mangalampalli 6/10/2011 6/14/2011

Adjusted width of conveyors for RZR crates Closed Dan Tate Dave Reed SreeRam Mangalampalli 6/10/2011 6/14/2011

Part presentation of work area Closed Dan Tate Dave Reed SreeRam Mangalampalli

Line A straight to yard Planning Dan Tate Dave Reed SreeRam Mangalampalli

Setting up rework area Planning Dan Tate Dave Reed SreeRam Mangalampalli

General Ergonomics Planning Dan Tate Dave Reed SreeRam Mangalampalli

6X6 Parts Kitting Active Dan Tate Lynn Kostrzewski

KPI Mixed Model Effectiveness Roseau ORV Assembly Mixed Model Effectiveness Active Dan Tate Dwight Ruud 12/28/2010 6/30/2011

Scheduling Communications Improvement Closed Dan Tate Dwight Ruud 12/28/2010 12/28/2010

KPI Material Flow Roseau Materials Inbound Material Strategy Active Mark Karl Jane Evans Sree Mangalampalli 4/17/2011 5/31/2011

GDP Mfg. Realignment Roseau Materials Central Planning Active Jane Evans MaryJo Oslon None 11/18/2010 6/30/2011

GDP Mfg. Realignment Roseau Welding/ Tube Fab Tube Fab Move Production start up Active Al Desrosier None 1/26/2011 12/31/2011

GDP Mfg. Realignment Roseau Engines Engines Move Cancelled Daniel Tate None TBD TBD

KPI Quality Roseau Paint Metal Paint Light Paint (25% improvement) Active Richard Lynch Dwayne Butler Renee Senechal 12/27/2010 7/31/2011

First top 3 parts Active Richard Lynch Dwayne Butler Renee Senechal 12/27/2010 7/31/2011

KPI Quality Roseau Paint Metal Paint E-Coat Bubbles Closed FTQ Richard Lynch Dwayne Butler Scott Kokal 5/1/2011 8/1/2011

KPI Safety Roseau Paint Metal Paint Loading/ Unloading area Active Richard Lynch Jim Kvidt TBD 5/1/2011 4/15/2011

KPI Safety Roseau Paint Paint Carts Analysis Active Richard Lynch Jim Kvidt Sree Mangalampalli 6/1/2011

KPI Safety Roseau Paint Metal Paint Parts Storage Standardization Active Richard Lynch Jim Kvidt TBD 3/14/2011 4/30/2011

KPIQuality

RoseauPaint Plastic Paint Dirt (especially air borne)

Active

FTQRichard Lynch Renee Senechal Lynnette Jackson

12/27/2011 7/31/2011

KPI Quality Roseau Paint Plastic Paint Runs and Sags Closed Richard Lynch Jason Keller Renee Senechal 2/22/2011 4/20/2011

KPI Environment Roseau Paint Paint Reductions of Hazardous waste material Cancelled Richard Lynch Renee Senechal David Dirks 3/15/2011 12/31/2011

KPI Environment Roseau Environmental Plastic Landfill Waste Reduction Active Jim Peterson David Dirks David Dirks 1/1/2011 6/30/2011

Delta Recycling Active Jim Peterson David Dirks David Dirks 1/1/2011 6/30/2011

Central Converting Active Jim Peterson David Dirks David Dirks 1/1/2011 6/30/2011

KPI Quality Roseau Welding/ Tube Fab Robot Repeatability Active Al Desrosier Jeremy Karnowski Scott Kokal 1/4/2011 12/31/2011

Grease zerk location team Active Al Desrosier Pat O Connell 1/26/2011 3/1/2011

RZR control arm tooling CLosed Al Desrosier Jeremy Karnowski 9/1/2010 2/15/2011

Arc signature tracking Active Al Desrosier Jason Ball 2/1/2011 4/1/2011

KPI Safety Roseau Welding/ Tube Fab Part Management/ Flow Active Al Desrosier Pat O Connell Robert Kulig 1/4/2011 12/31/2011

Material flow-weld,paint,asm Prioritization of areas Active Al Desrosier Pat O Connell Robert Kulig 2/21/2011 2/22/2011

Small parts area material flow Active Al Desrosier Hasso Rothenbacher Robert Kulig 2/23/2011 2/25/2011

Weld Frame Material Management Re-alignment (ATVs) Active Al Desrosier Greg Anderson Lynn Kostrzewski 3/1/2011 3/2/2011

KPI Productivity Roseau Welding/ Tube Fab Productivity in Mixed Model Environment Active Al Desrosier Todd Koenig TBD 1/4/2011 12/31/2011

Rng 400/500 robot through-put- lower frame Closed Al Desrosier Dave Thompson 11/15/2010 1/15/2011

RZR XP robot through-put/scrap/FTQ lower frame Active Al Desrosier Kurt Wojchowski 2/2/2011 4/1/2011

Rng 400/500 crew robot through-put- lower frame Planning Al Desrosier Dave Thompson

RZRXP performance team Active Al Desrosier Todd Koenig 2/1/2011 3/1/2011

Moto 18 service/production setup of tunnels Closed Al Desrosier Jason Ball 2/4/2011 4/1/2011

Small parts w/c utilization Brainstorming Al Desrosier Todd Koenig

GDP Mfg. Realignment Parts Packaging (Monterrey/ Spirit Lake/ Roseau) Active Mark Karl Andy Miller Max Gustafson 10/1/2010 3/18/2011

Plastic Parts/ Paint Active Mark Karl Andy Miller Max Gustafson 10/18/2010 3/18/2011

Weldments Active Mark Karl Andy Miller Max Gustafson 8/1/2010

Clutches Active Mark Karl Andy Miller Max Gustafson 10/1/2010

Exhaust Active Mark Karl Jeff Schwochert

Seats (Vendor involved) Active Mark Karl Jeff Schwochert

Tubes Active Mark Karl Jeff Schwochert 1/17/2011 3/18/2011

Type: GDP/

KPI &

DAILY

MGT

Type of

Savings

StatusProject TitleTTI's / Metric to Improve

Planned Dates

Team Leader FacilitatorOwner

LEAN2012.COM

Value Stream Mapping

• Once a Year

• Action Plan review

• Current State update

• Opportunities identified

• Ideal State discussed

• New Action Plan is developed with Priorities and Owners

Snowmobiles ATV

Side by Sides

LEAN2012.COM

THE KAIZEN PROCESS

LEAN2012.COM

Charter

• Assimilate and plan

– Problem Definition

– Objectives

– Scope

– Team

– Timeframe

– Key Activities

– Limitations

• Consistency of message

– Start with charter

18

LEAN2012.COM

Kaizen • Current State

– Process Flow

– Data Collection

– Root Cause Analysis

• Opportunities – Identify as we go

– Prioritize

• Future State – How different

– Short/ long term

• Action Plan – Owners and Dates

– Follow-up

19

LEAN2012.COM 20

Problem Points:

Improvement Costs:

• Snow Assembly area will face increased capacity this year. Team’s objective was to brainstorm and develop action plan on how to improve the bottleneck, gluing area.

• $78K (conservative estimate) for new layout to offset $250K increase of costs in the area due to increased capacity.

Improvement Points:

Impact:

• Improved table design to handle both front and back of chassis.

• Adding additional table to improve capacity and avoid overtime

• New layout and process will help the line increase capacity from 150 line rate to around 190 line rate with minimum increase in costs.

Before Improvement After Improvement

Example 1:

Snow Assembly Line Chassis Gluing Area

LEAN2012.COM 21

Problem Points:

Improvement Costs:

• There were opportunities around product design associated with Safety & Ergnomics, Common parts, process improvements.

• Can’t put a cost to some that are related to employee safety.

Improvement Points:

Impact:

• Developed an action list of 155 ideas. 64 will be design related. • Examples: Heat Shields, Rear racks, Motor Mounts, Seat install,

cotter pin, steering posts, handle bars, etc.

• 2011-1 recordable. 5 first aid injuries in 2012. • At least $66,000 in downtime, rework costs reduced. • Cost of mandated gloves/ employee inconvenience • Lost production capacity with downtime.

Before Improvement Action plan

# Idea Station # Payoff matrix Person Responsible Implementation Date Comment Model 1/2/3 Category

31 4011835-LH CTRL set screw fall out or are too tight for sliding on handle bar A102 1 Steve E/Mike K 5/23/2012 Sportsman 1 Process Improvement

24 paint in the EPS lower post tie rod holes-have to drill-go to plated part A111 1 Ron D/Mike K. 5/23/2012 1 process improvement

40 commonize 500 trg steering post with the sultan A111 1 Steve E/Jeremy K 5/23/2012 Touring 1 Common Parts - Ex Hardware

36 Commonize handle bars- have option for mirrors left. common handle bars SP and XP. Goal A131 1 Steve E/Mike K 5/23/2012 1 Common Parts - Ex: Hardware

45 power steering skip tooth is off-manually rotate. EPS A201 1 Dan Weber/Mike K 5/23/2012 XP 2 Safety and Ergonomics

15 Remove small cotter pin (difficult to install), need easier locking pin. brake pedal cotter pin A202 1 Bryce E,Steve E/Mike K 5/23/2012 Sportsman 1 process improvement

46 bar code XP rear gear cases hard to scan-relocate A501 1 Steve E 5/23/2012 ECO in system, 2 Safety and Ergonomics

4 put on hub caps on tractor models, move caps to strut assembly B201/202 1 Steve E/Jacob M 5/23/2012 Tractor 1 Safety and Ergonomics

22 get 1-piece boot for the winch harness on the contactor E102 1 Jeremiah J/Mike K 5/23/2012 1 process improvement

23 add 2" length to the winch wires (Mike Klien and Greg Minor) E102 1 Jeremiah J/Mike k 5/23/2012 1 process improvement

32 Xp's winch wire, ground wire too short E102 1 Jeremiah J/Mike K 5/23/2012 xp 1 Miscellaneous

37 500/800 clutch bolts and washers commonized. Clutch mounting hardware 1/4" difference. E201 1 Ron D/Jacob M 5/23/2012 Sportsman 1 Common Parts - Ex: Hardware

1 Heat shields and pipes are sharp for XP's F302 1 Ron D/Dan Weber/Jacob M 5/23/2012 Print review, Dan Tate to discuss with Rob S. XP 1 Safety and Ergonomics

16 800 exhaust pipe hit bolt head on engine causing vibration F302 1 Steve E/Jeremy K 5/23/2012 Sportsman 1 process improvement

21 Xp air box LH mount cracks through knit line G301 1 Dan Weber/Mike K 5/23/2012 1 process improvement

25

Radiator overflow bottle modified so that brake line runs underneath. Avoids clipping brake

line. G501 1 Steve E/Jeremy K 5/23/2012 All 1 Process Improvement

26 Headlight wires need to be longer on R/S on 500 forest. XPs too (pod Light) H201 1 Greg Minor/Bryce E/Jacob M 5/23/2012 Review all models Forrest 1 Process Improvement

83 XP Speedo-doesn't fit flush. Make clips smaller. H102 1 Bryce E/Mike K 5/23/2012 XP 2 Process Improvement

17 8450096-25 hose too short, need to add 1 inch F401 1 Steve E/Jeremy K 5/23/2012 Review print for angle fitting Sportsman 1 Process Improvement

27 Torx screw on pods instead of philips I152 1 Bryce E/Jacob M 5/23/2012 1 Process Improvement

11 Pods on tractors do not stay plugged in and are hard to plug in I201 1 Bryce E/Jeremy K 5/23/2012 Tractor 1 Safety and Ergonomics

5 new plug for 800's on RH foot well near exhaust pipe, getting part quoted by Jay N. I302 1 Tammy Wahl/Jeremy k 5/23/2012 Parts in testing Sportsman 1 Safety and Ergonomics

14 Torx bits break in large amounts for rear rack assembly. Torque heads small. J201 1 Ron D/Mike K. 5/23/2012 $4036 in rework last year, $4000 in labor 1 process improvement

9 Xp touring seat suspension (concern with going back to improved old design) J402 1 Ron D/Steve E/Mike K. 5/23/2012 XP 1 Safety and Ergonomics

Xp air box seal G252 1 Dan Weber/Mike K 5/23/2012 XP 2 Process Improvement

Sultan RH side panel foil needs eco change J201 1 Steve E 5/23/2012 just eco foil for Sportsman 2 Process Improvement

41 Trailboss tie rods commonized with sultans A111 2 Steve E/Jeremy K need to review with prints and at next build Trail Boss 1 Common Parts - Ex Hardware

35

Commonize motor mounts and get rid of 076 motor mount(and isolators). engine mounts

have studs .06 shorter on one side. engine brackets-plate different colors to aid

differentiation C022 2 Bryce E/Jacob M All 1 Common Parts - Ex: Hardware

55 One Battery for 550/ 850 XP (3 to 2) C101 2 Ron D/Mike K. XP 2 Common Parts - Ex: Hardware

62 Can we reduce our battery cables? D201 2 Bryce E/Greg Minor/Jacob M All 2 Common Parts - Ex Hardware

75

400 front radiator hose, currently 2 panduits, can it replace with one clamp, Tractor Upper LH

Rad hose common with 500 D501 2 Steve E/Bryce E/Jeremy K need to review at next build, get routing photo Sportsman 3 Miscellaneous

10 make SP contactor nut/bolt asm vs selftaper E102 2 Ron D/Steve E/Mike K. Sportsman 1 Safety and Ergonomics

33 XP 550 pipe angle to engine, (exhaust leaks) Generates lot of rework. F302 2 Ron D/Bryce E/Mike K. xp 1 Miscellaneous

78

XP tool box seal glued in, sportsman is not. Can glue be removed, can seal be put in at

vendor F401 2 Dan Weber/Mike K xp 3 Common Parts - Ex: Hardware

81 Need pry bar to close the rear tool box on XP J201 2 Dan Weber/Mike K XP 3 Process Improvement

6 front cab on forest INTL models need to have holes drilled and plugged. I152 2 Steve E/Jacob M Forest 1 Safety and Ergonomics

28 Fit up on painted cabs have to add panduit- sultan I152 2 Steve E/Bryce E/Jeremy K Sportsman 1 Process Improvement

52 Side panels on XP's tabs not going in I301 2 Bryce E/Mike K XP 2 Process Improvement

18 touring passenger foot pad, difficult to install bolts, I301/I302 2 Bryce E/Jeremy K Review next build Touring 1 Process Improvement

29 Bad fit up in all rear racks J201 2 Ron D/Mike K. All 1 Process Improvement

66 Side panels on sultans come out of grommets. Rubber grommets fit issue? I401 2 Steve E/Jeremy K Review with Clint on the line Sportsman 1 process improvement

7 SP 500 touring and sportsman seats too hard to go on J402 2 Steve E/Jacob M Sportsman 1 Safety and Ergonomics

8 Tractor seats are impossible to put on. J402 2 Steve E/Jacob M Tractor 1 Safety and Ergonomics

51 Glue is not good on the hand warmers 9not sticky enough) A131 3 Bryce E/Mike K 2 Process Improvement

54 Handwarmer needs longer convolute tubing A131 3 Bryce E/Mike K 2 Miscellaneous

42 Commonization throttle cable for tractor 500 trg C032 3 Bryce E/Jeremy K Tractor 1 Common Parts - Ex Hardware

34 Tractor air solenoids, plastic fittings cracking D451 3 Ron D/Jeremy K add torque and angle spec to print? New fitting? Tractor 1 Miscellaneous

19 Oil Cooler install on trail boss, hard to put on nuts, can stamping be coined and use self- D501 3 Steve E/Jeremy K need to review at next build Concentrics 1 process improvement

69

Air intake boot to engine seems too large in diameter and moves when tightening hose

clamp (trail boss, picture available) D501 3 Steve E/Jeremy K need to review at next build Concentrics 3 Process Improvement

43 Headlight Springs in 550/ 850 forrest bumper hard to install H201 3 Ron D/Mike K. XP 2 Safety and Ergonomics

48

800 military, slots in bumper plate need to be shorter in length, allow box to open

completely H201 3 Steve E/Jeremy K Review at next build with Steve Military 2 Process Improvement

68 XP touring rear skid plate, dosen't stay on before screws can be put on. A102 4 Ron D/Jeremy K Working on moving the steel skid plate xp 3 Process Improvement

74

Fuji Engines loose hardware: We get loose parts in packet. Why cant we buy in bulk?

Unnecessary parts movement across line. C022 4 Mike K/Dan Tate Materials/purchasing group needs to review All 2 Process Improvement

20 SP 500 trg air box 1 clip typically falls off G252 4 Steve E/Jeremy K Touring 1 Process Improvement

70

Trail boss 330, hard to put screws in to hold turn lights to front rack. Looks like tabs should

have been bent down for more access for the tool. H201 4 Steve E/Jeremy K Review at next build with Steve Concentrics 3 Process Improvement

82 Delete VIC spray in crating-Put in bag? L100 4 Bryce E/Mike K XP 3 Process Improvement

63 Commonize choke/ ignition nuts on sultan I201 4 Bryce E/Jeremy K Sportsman 2 Common Parts - Ex Hardware

12 2 different screws and nuts for XP & sultan footwells- 1 metric and 1 standard- mixed I301 4 Bryce E/Mike K

Engineering will not mix chassis fasteners between

metric and standard, review with operators for real

problem XP 1 process improvement

49 have stamp for tractors on lower front l/s frame tube A101 International regulation to have VIN # on L/S of vehicle Tractor 2 Process Improvement

50 take stars off tractor vin # A101 International regulation 2 Process Improvement

73 Change from screws to push rivets on rock guard. Skid plate-frame and load for XP? A102 cannot risk skid plate falling off during use XP 3 Process Improvement

72 add 2 skip teeth in EPS steering post to error-proof assembly A201

Getting EPS unit aligned will eliminate the need for this

item 3 process improvement

64

Either standard or metric but just one for arden fasteners. Legacy is standard. New product is

metric. All

New product is Metric, Review areas where thru

fasteners can be accepted All 3 process improvement

56 Commonize 500/800 front struts B201

too much weight difference between the vehicles, have

to be different, Ride and handling suffers Sportsman 2 Common Parts - Ex: Hardware

67 550 coupler to come on engine like 850 does. Fuji engine vs. Osceola/ Mexico. C022 Logistics issue, couplers in Ohio, Engines in Japan XP 3 process improvement

53 wire routing, XP's seem cleaner than sportsmans D201 Review on new models, All 2 Miscellaneous

13 Fan and fan shroud to come assembled together. (800 sportsman only) D452 Work with Purchasing Sportsman 1 process improvement

30

Hoses for radiators have different quantites in big boxes, some does just 3 hoses? Same box

size for end of runs etc. (Work with Purchasing) D452 Sportsman 1 Miscellaneous

38 Commonize radiators for 500 & 800??? D452 Engine size and heat output Sportsman 1 Common Parts - Ex: Hardware

59

Commonize fuel pumps & hoses 400, 500, trg. Do they use the same pumps with different

routings???? Can't commonize touring. D452

pumps are common, hoses cannot be, engine and carb

location differences Sportsman 2 Common Parts - Ex: Hardware

44 113 belt very tough to intall (Process review) E101 Jeremy K/Mike K

Move to manufacturing list, find tool that was built to

open clutch. Sportsman 2 Safety and Ergonomics

60

Commonize clutch cover seal retainers?? Inner retainer. 800 has different shape than 500.

They mess it up. Error-proofing item. E102 Engine case will not allow items to be common Sportsman 2 Common Parts - Ex: Hardware

58 Commonize rear springs for 550/ 850 XP E201 Steve E/Jacob M 800 is heavier, need indicator for spring idenification XP 2 Common Parts - Ex: Hardware

57 Commonize grease zerks at E212 & E251- on a-arms and hubs ??? E212

longer ones cannot be used in A-arms (hit bolt), short

ones cannot use in casting (not enough thread

engagement) 2 Common Parts - Ex: Hardware

2 Halfshafts hard to fit into tranny due to cotter ring- force them in E302 Mike K Move to manufacturing list for QA investigation Sportsman 1 Safety and Ergonomics

3 A-arm does not fit top of bearing carrier- have to hammer it on #1017748-067 E302 Jeremy K Move to manufacturing list for QA investigation All 1 Safety and Ergonomics

39 Commonize 550/ 850 silencers (4 to 2) F302 Tested by engineering and 550 will not survive on 850 XP 1 Common Parts - Ex: Hardware

47 exhaust pipe shield, why three fasteners to hold(1262282) F302 Need three to keep part from breaking Sportsman 2 process improvement

79 Oil tank, different dip stick on scrambler, why? F401

Oil tank is mounted at different angle, requires unique

dip stick Concentrics 3 Common Parts - Ex: Hardware

80 Foil on bottom of XP tool box has screws. Can we eliminate screws and use adhesive? F401 Exhaust too hot and it effects the adhesives XP 3 Common Parts - Ex Hardware

76 Commonize gas tanks??? TRG tank is bigger. Sportsman: can't fit that in.??? G101 Touring too big for 500 and 500 too small for TRG Sportsman 3 Common Parts - Ex: Hardware

71 XP air box plug wire holder needs to be filed G252 Complete, using up old inventory 3 process improvement

77

Commonize fuel lines- clamps vs snap ins. All fuel injected are snap ons. All carborator

models are snap on. G301 Cost to implement too high vs labor savings 3 Common Parts - Ex: Hardware

65 Have XP front bumper access cover molded in like sultans instead of asm I101

tool cost to change is too high, customers would like to

see sultans removable XP 3 process improvement

61

All rear rack screws commonized across models. Metric/ standard threads on fastener.

Always have problem with right hand top corner. J201

Requires corporate directive to change all vehicles to

metric All 2 Common Parts - Ex: Hardware

Example 2:

ATV Process Improvements Kaizen

LEAN2012.COM

Kaizen Video

22

LEAN2012.COM

Resources

• People

– Director for Lean Operations

– Lean Operations Manager

– 2 Facilitators

– Team Leaders

• Infrastructure

– Creform Room

– Resource Room

– Kaizen Room

23

ROSEAU MANUFACTURING

October 2011

Holly Palm

Adm Assistant

Robert Miller

Snow M.E.

Open

Snow M.E.

Brenda Brandt

Brake/Clutch Supervisor

Kieth Buley - Temp

Snow Pre Supervisor

Steve Erickson

Snow Final Supervisor

Bill Miller

Operations Mgr

Robert Novak

Weld M.E. - ATV

Jason Ball

Weld Process Engineer

Jeremy Karnowksi

Weld M.E. Snow/Sport ATV

Todd Koenig

Welding Supervisor-1st

Pat O'Connell

Welding Supervisor-2nd

Mike Jordet

Welding Supervisor-3rd

Troy Weiland

Tube Fab Supervisor

Glen Buckta

Tube Fab Supervisor

Wally Borah

Tube Fab Supervisor

Shannon Ostby

Tube Fab Supervisor

Joel Brichacek

Enginser, Associate

Todd Hagen

Mfg Technologist

Al Desrosier

Unit Mgr Components

Open

ATV M.E.

Mike Klein

Adv. M.E. ATV

Dave Reed

Adv. M.E. SxS

Open

SxS M.E.

Shane Jobman

SxS M.E.

Dwight Ruud

Line A Supervisor

Myles Hogenson

Line B Supervisor

Lisa Thompson

Line A 2nd

Nicole McDonald

Line B 2nd

Daniel Tate

Mgr Assembly Production

Maureen Langaas

Materials Proj Lead

Paul Gumeringer Temp

Logistics Supervisor

Cindy Butler

Shipping Supervisor

Mary Jo Olson

Inventory Ctl Supervisor

Jane Evans

Materials Manager

Howard Orgon

Tool Engineer

Jamie Lisell

Mfg Engineer

Nick Ericksen

Process Engineer

Pat Novacek

Supervisor

Tim Doneth

Supervisor

Tim Nelson

Supervisor

Dean Johnson

Supervisor

Spencer Johnston

Inv. Control Supervisor

Harley McMillin

Mfg Mgr Plastic Inj.

Guy Strandberg

Maint Systems Coord

Mike Bodell

Plant Services Supervisor

Dwayne Mast

Tool & Die Sup/Buyer

Deland Broten

Technologist, Assoc.

Rick Enger

Controls Engineer

Scott Laznicka

Controls Engineer

Nate Olafson

Project Coord.

Open

Controls Engineer

Rodney Borowicz

Project Engineer

Kurt Bickler

Facilities Eng./Systems Mgr

Sree Mangalampalli

Lean Manufacturing Mgr

Bruce Stone

QA Technologist

Bob Moser

SxS QE Supervisor

Jared Evans

ATV Technologist/Sup

Scott Kokal

Weld/QESup.

Rebecca Bowes

QA Audit/Sup.

Dennis Sabourin

Technologist, Quality

Andrew Hoard

Technologist Tube Fab

Steve Pavek

Quality Assurance Mgr

Jim Kvidt

1st Shift Paint Sup.

Renee Senechal

Finishing Engineer

Richard Lynch

Unit Mgr - Metal/Plastic Paint

Mark Karl

Director Operations

LEAN2012.COM

Team Leaders • 1 every 5-8 emp.

• Approximately 65

• 50% off the line

• Work on

– Implementing ideas

– Training

– Andon

– Line balancing

– Standard work documentation

LEAN2012.COM

Creform Room

• Custom built racks

– Parts presentation

– Flexibility

– Creativity

– Maintenance requests

• Team Leaders/ Group Leaders

– Training provided

– Easy to learn

– Reuse/ Recycle

LEAN2012.COM

Resource Room • Facilitators’ office

– Assist & Support

– Mentor & Coach

• Computers – Standard work sheets

– Other lean tools

• Label Maker – Improved 5S

– Ease of use

– Training

• Sign Maker

• Library – Lean/ Business books

LEAN2012.COM

Kaizen Room

• Amenities:

– Standard work sheets

– Supplies • Post its

• Brown paper

• Markers

• Tape etc.

– Wall Space to map processes

– Dry Erase board

– Flip Charts

– Dedicated room to schedule

LEAN2012.COM

Sustainability

• Action Plan Follow-up

– Running list

– Stored in SharePoint site

– Follow-up meetings

– Champion’s call

– Color coded

28

LEAN2012.COM

Gemba Walk • Overview

– 3 Teams of Managers

– 1-2 Walks per day

– 15 min scheduled walk

– 15 min review meeting

• Process

– Rotate areas

– Review Improvements

• Purpose

– Gather Feedback

– Strategic orientation

29

LEAN2012.COM

Challenges

“It is not that we implement systems and they just happen”

Flexibility

• Mission Critical Direction Changes

• Business Need Changes

Sustainability • Hiring surge • Vigilant • Momentum • Re-energize

Standardization • Cross-site • Within the plant • Level of Standardization • Balance of priority

Lean Maturity • Started in 1995. • Buy-in and Embrace

LEAN2012.COM

Questions & Answers

Maximum: 10 minutes

LEAN2012.COM

SreeRam Mangalampalli

SreeRam.Mangalampalli@Polaris.com

Implementing & Sustaining Kaizen The Polaris Way

Please remain in the room to do the session evaluation