Lean Process & Employee

Involvement:

Core of Innovative Manufacturing

Dave Tumbusch

Director of Manufacturing

Kim Leopold

Sr. AME Operational Excellence

Crown Equipment Corporation

Introduction to Crown

5 regional

headquarters

2.4 Billion USD

FY2013 10,700

employees

Over 500 retail locations across 84 countries

17 manufacturing plants in 11 locations worldwide

Leader in material

handling innovation

and technology

Family owned and managed industry leader since 1945

Global line of

trucks designed

to local work

practices

Innovative

fleet

management

solutions

One of the World’s Largest Lift Truck Manufacturers

Global Line of Lift Trucks

Designed to meet local standards and operator

preferences

Global Manufacturing

17 Manufacturing Plants in 11 Different Locations

North American Manufacturing

New Bremen, Ohio

(Corporate)

Troy, OH

Greencastle, IN

New Castle, IN

Kinston, NC

Queretaro, Mexico

New Bremen Manufacturing

Fabrication/Welding/Heavy Machining

Precision Machining

Wire Harness Assembly Plant/ Distribution Center

Motor Plant/Plastics

Electronic Assembly Mast Plant

Crown Company Policy:

“We are committed to leading the industry as manufacturer of choice by providing our

customers with preferred products, parts and services that will support their success as well as our own. To that end, we are dedicated to the

improvement of our people, product and processes.”

Crown Principles, Approach & Tools

Crown Principles

Crown Lean Approach • Leadership read Lean Culture by David Mann

• Developed a Plan

• Identified Modules

• Identified Sites

• Identified leads to deploy modules

• Executed a Structured Approach

• Module Development

• Subject Matter Expert Certification

• Annual Assessments

• Training for 100% of Leadership & Employees

Core Lean Tools • 5S

• Standard Work

• Kaizen

• Value Stream Mapping

• Rapid Kaizen

Structured Lean Tools

Employee Engagement Success!

Continuous Improvement Culture

People

Processes Principles

Crown Culture

Support Structure

Plant Leadership

(Lean Management System Coaches)

White Belts

(all employees)

Corporate Operational Excellence

Team*

(7 People)

*Supports all of Crown

Plant Leadership Staff

(Lean Management System & Subject Matter Expert Coaches)

(9 people)

Subject Matter Experts

(13% of support staff with at least 1

certification)

White Belts

(All Employees)

(80% Trained)

Crown’s Lean Journey

Crown’s Lean Journey

Lessons Learned • Lean Project Managers are much different than

Lean Coaches

• Focus needs to be on Developing People

• Establish standards to demonstrate desired lean

behaviors to spread across the enterprise

• Examples:

• Lean Management System

• Modules

• Whitebelt

Employee Involvement is Key

Ownership of processes and

work areas drive sustainment

Communication creates buy in

from the support staff l

Increase quality of pin points and increase safe steps

participation and feedback ratesl l l m m m

l Enhance safety teams l l l l m m m

l l lReduce process time through the reduction NVA time and

process designl l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l m l m

l l l l

Enhance IDP's w a focus on Lean tool application and

problem solvingl l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l

l l Support ops ex initiatives l l l l l l l l l l l l l l l l l l l

l Reduce Quantity of Defects (External) l l l l l l l l l l l l l l l l l l l m l m m

l l l l l Determine process capability on critical processes l l l l l m l m m

l l Improve material flow and reduce line-side inventory l l l l l l l l l l l l l l l l m m l

l l l l Increase capacity to support 5-yr projections l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l m m l m

Incr

ease

Em

ploy

ee O

wne

rshi

p of

Saf

ety

Impr

ove

dire

ct la

bor

conv

ersi

on f

acto

r by

5%

to

sup

port

5-

year

pro

ject

ions

and

att

ritio

n

proj

ectio

ns

Impr

ove

plan

t Le

an a

nd p

robl

em s

olvi

ng s

kills

Red

uce

Cos

t of

Poo

r Q

ualit

y an

d im

prov

e pr

oces

s ca

pabi

lity

Impr

ove

Mat

eria

l Vel

ocity

Rat

io

Cap

acity

gro

wth

to

supp

ort

busi

ness

goa

ls

Gra

de 1

00%

of

pin

poin

ts a

nd im

prov

e al

l non

-spe

cific

/ m

easu

rabl

e pi

n po

ints

by

end

of Q

2

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ease

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e S

teps

par

ticip

atio

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te b

y 10

% b

y en

d of

Q3

Tra

in 1

00%

of

Inci

dent

Inv

estig

atio

n te

am o

n B

asic

Pro

blem

Sol

ving

by

end

of Q

4

Red

uce

DP

MO

by

10%

by

the

end

of Q

4

Com

plet

e N

BO

milk

run

ana

lysi

s by

end

of

Q2

Dev

elop

Sta

ndar

d W

ork

for

time

stud

ies

& li

ne r

ebal

anci

ng b

y en

d of

Q1

Cer

tify

20 a

dditi

onal

RK

E S

ME

's b

y en

d of

Q4

(12

from

Mfg

gro

up a

nd 5

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m M

fg s

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om P

lann

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Exe

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Q3

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SM

SM

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1 T

rans

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nal V

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SM

E)

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nd o

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nal G

reen

belts

by

end

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qua

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1 m

anuf

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supp

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Cer

tify

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g, 1

qua

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2 m

anuf

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ring

supp

ort)

Incr

ease

Vel

ocity

Rat

io b

y 3%

ove

r la

st y

ears

ave

rage

by

end

of Q

4 (4

5% t

o 48

%)

Impr

ove

Rus

h on

-tim

e de

liver

y to

99

perc

ent

for

Top

100

0 S

ervi

ce I

tem

s by

end

of

Q4

Impr

ove

On-

Tim

e D

eliv

ery

to 9

8 pe

rcen

t fo

r S

ervi

ce I

tem

s by

end

of

Q4

Com

plet

e &

Im

plem

ent

Dat

a T

ag p

roce

ss f

utur

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ate

VS

M b

y en

d of

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reas

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atur

ity

from

4 t

o 8)

Com

plet

e 8

war

rant

y ac

tiviti

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y th

e en

d of

Q4

Dev

elop

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ndar

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s to

adj

ust

com

pone

nt in

vent

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ls (

ex k

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n) f

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ule

chan

ges

by Q

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ncre

ase

mat

urity

fro

m 5

to

8)

Red

uce

Less

Tha

n 90

Day

War

rant

y to

less

tha

n 5%

by

the

end

of Q

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tify

2 T

eam

Mem

bers

in B

SC

M (

Bas

ics

of S

uppl

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hain

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agem

ent

/ A

PIC

S)

by e

nd

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Red

uce

num

ber

of P

lant

4 E

Os

to b

e pr

oces

sed

to le

ss t

han

100

by e

nd o

f Q

4

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thly

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P R

evie

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w a

ll su

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t te

am m

embe

rs b

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d of

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ove

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ft s

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t Q

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30%

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Tra

in 9

6 E

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on

Whi

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lt by

the

end

of

Q4

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emen

t 2

Inte

rnal

Key

Fea

ture

s by

end

of

Q4

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ove

RR

/RM

eff

icie

ncy

by 6

% b

y en

d of

Q4

Sup

port

pro

duct

dev

elop

men

t pr

ojec

t, C

1669

, in

ord

er t

o ru

n M

CS

in N

ovem

ber,

201

5

Red

uce

RR

Plu

mb

rew

ork

truc

ks b

y 30

% b

y en

d of

Q3

PF

ME

A c

reat

ed f

or R

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d of

Q3

for

war

rant

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PF

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ate

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base

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by

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leco

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l 1 b

y th

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ove

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ffic

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6%

by

end

of Q

2

Dis

play

TS

/ T

SP

bas

elin

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of

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ate

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base

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by

the

end

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by 2

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by

end

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tern

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ME

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for

war

rant

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sed

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ate

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n fo

r w

arra

nty

base

d ac

tivity

by

the

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of Q

3

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ove

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eff

icie

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by 6

% b

y en

d of

Q4

PF

ME

A c

reat

ed b

y th

e en

d of

Q1

for

war

rant

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sed

activ

ity

Cre

ate

Con

trol

Pla

n fo

r w

arra

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base

d ac

tivity

by

the

end

of Q

2

Impr

ove

Pai

nt e

ffic

ienc

y by

3%

by

end

of Q

4

Red

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Pow

der

Coa

t un

plan

ned

DT

by

25%

by

end

of Q

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Com

plet

e ca

pita

l pro

ject

for

the

5-s

tage

was

her

head

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er r

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ent

thro

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prod

uctio

n st

art-

up b

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arch

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201

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plet

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l pro

ject

for

the

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boo

th o

scill

ator

rep

lace

men

ts t

hrou

gh

prod

uctio

n st

art-

up b

y A

pril

13,

2015

Dev

elop

a b

usin

ess

plan

for

pai

ntin

g 39

0 ya

rd p

arts

in M

X b

y en

d of

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plet

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ansi

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aint

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RN

by

end

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4

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plet

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l pro

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for

tab

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last

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cem

ent

by t

he e

nd o

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Do

ug

Ma

rtz

De

an

Ho

we

Me

lissa

Da

rrig

an

Bru

ce B

erg

ma

n

S S S Q C CIDP/C/Q/

DCap

IDP/C/Q/

D

IDP/C/Q/

D

IDP/C/Q/

DC/D D D C/D/Q Q D/C Q/C IDP/D/C C/D

IDP/C/Q/

S

IDP/C/Q/

SS/Q/C/D S/Q/C/D S/Q/C/D Q Q/C/D Q/C Q Q Q Q Q/Cap Q/C/D Q Q Q/C/D Q/C/D Q Q Q/C/D Q Q C/D C/D C/D/Cap C/D/Cap C/D C C/D/Cap

Plt 1 Plt 2 Plt 3 Plt 4 Plt 5 Plt 6 Plt 7 Plt 8 Plt 9 Plt 10 Plt 11 Plt 12 Plt 13 Plt 14 Plt 15 Plt 16 Plt 17 Plt 18 Plt 19 Plt 20 Plt 21 Plt 22 Plt 23 Plt 24 Plt 25 Plt 26 RR1 RR2 RR3 RR4 RR5 RR6 RR7 TS1 TS2 TS3 SP1 SP2 SP3 SP4 RC1 RC2 RC3 PT1 PT2 PT3 PT4 PT5 PT6 PT7

•Improve competencies of NBO Manufacturing staff and

manufacturing support teams

• • • • • •Execute FY15/16 operating budget, capital plan, and cost

reduction targets

• •Reduce cost of poor quality by 10% by improving the quality

of our processes and productsl

• • • • •Apply lean tools to reduce and/or eliminate waste in our

processes.m

2015-2016 Plant 4 Operations Strategy Deployment X Matrix

Owner: Chris

Rohrbach

Champion : Dave

Tumbusch

Primary Responsibility

Secondary Responsibility

Reduce TCIR and LWCIR by 25%

Team Members

•

FY 2015/16 AnnualTargets(when &

how much)

2015/16 Breakthrough

Objectives (what)

Top Level AIP's

(what)

2nd LevelAnnual Improvement

Priorities-AIP's FY2015/16

(how)

2015 - 2016 OBJECTIVES APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MARFrequency Rate 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

TCIR < 2014 (4.72)

Severity Rate 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

LWCIR < 2014 (1.57)

Internal DPMO

External DPMO Goal <TBD

Project Warranty Activities Closed 1 1 2 3 3 4 5 5 6 7 7 8

OTD Goal 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0%

OTD Actual

97.0% 97.0% 97.0% 97.0% 97.0% 97.0% 97.0% 97.0% 97.0% 97.0% 97.0% 97.0%

98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0%

98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0%

Direct Labor Conversion Factor 76.7% 76.7% 76.7% 76.7% 76.7% 76.7% 76.7% 76.7% 76.7% 76.7% 76.7% 76.7%

Overall Conversion Factor 67.3% 67.3% 67.3% 67.3% 67.3% 67.3% 67.3% 67.3% 67.3% 67.3% 67.3% 67.3%

Plant 4 On-Time Delivery to Service

Orders

2579

7211

Focus on foundational tools that

create sustainable habits

5S

Standard Work

Kaizen & Rapid Kaizen

Value Stream Mapping

Set Up Reduction

TPM

Continuous Improvement

Tools & Training

5S • Indicates change is happening

• Applicable to both office and manufacturing areas

Operator Standard Work • Baseline for improvements

• Difference between Standard Work (What) &

Work Instructions (How)

“Where there is

no standard,

there can be no

kaizen”

– Taiichi Ohno

Kaizen Events • Engage people in implementing ideas

• Teamwork (cross functional roles)

• Quick wins

• Build Momentum

Value Stream Mapping • Organize change efforts and resources

• Connect improvements to corporate strategy

• Connect value streams across the business

Rapid Kaizen Events • Point Improvements

• Achieve Target Conditions

• Use tools such as

• Gemba Walks

• Spaghetti Charts

• PDCA Cycles

Whitebelt • “Lean Fundamentals”

• Creates a common language

• Hands on application of lean tools

• Generates excitement for lean application in their

work areas

Lean Management System

Leaders responsibility: • Is the process running as

designed?

• How can we improve the

process?

We focus on the

Respect for People!

4 principle elements of LMS • Leader Standard Work

• Visual Controls

• Daily Accountability

• Leader Discipline

Plant Mgr

Group Ldr

Prod Mgr

Mfg Supv

Crown Challenge • Engages and rewards employees

• Improves communication and teamwork

• Supports business goals and objectives

• Safety, Quality, Delivery, Cost, and Operational

Excellence

• Creates a standard recognition process for

achievements

Our Next Steps

Our Strategy for Manufacturing • Focus on implementing and developing Subject

Matter Experts in the Foundational Modules at each

site

• 5S

• Standard Work

• Kaizen

• Value Stream Mapping

• Rapid Kaizen

• Leadership continues Lean Management System

training and developing themselves as Lean Coaches

• Annual Progress Assessment

• Our intent is that our:

• Org structure will change as sites become less

dependent on the corporate team

• New areas will be developed similar to

manufacturing

• Developing Subject Matter Experts in Core 5

Tools

• Advanced Lean Experts will increase and

become coaches to new Subject Matter Experts

• Leadership will be trained and help deliver

training to new leaders (“Walk the Talk”)

As we grow…

Future Training & Modules • Advanced Lean course for

Subject Matter Experts

• Facilitation Training for

Subject Matter Experts

• Transactional Lean

Application Training and/or

Modules

• 3P (Production Preparation

Process) Module

For your consideration…

For your consideration… • Put together a plan

• Focus your efforts

• Conceptual Training / Common Language

• Use proper tools to address problems

• Create an environment for involvement

• Determine your method to drive sustainment

• Leadership involvement

Thank You!

Please complete the session survey at:

www.ame.org/survey

Session: TP/07

Lean Process & Employee Involvement:

Core of Innovative Manufacturing

Dave Tumbusch / Kim Leopold

Crown Equipment Corporation David.Tumbusch@crown.com Kim.Leopold@crown.com