Oji IntertechOji Intertech

Reorganization Into Value StStreams

Wendell AldrichWendell AldrichPlant ManagerOJI Intertech

PH: 260‐982‐1544 Ext. 29waldrich@ojiintertech.com

Timeline For Lean Implementation26 years of  Focused 1. Organized Received Completed

Step 1 Step 2 Step 3 Step 4y

operating under mass production system Culture

Implementingthe House ofLean

ginto three value streams

PPF

training grantto complete Lean/Six Sigma training

pBlack BeltProject

Started TPMsystem.  Culture was set in mass production thinking.

Started with Kanban tocreate pull

‐ PPF‐ F10‐ Extrusion

Sigma training

Completed three Green 

Started TPM At ExtrusionCoating line

Belt projects 

1980Company  was incorporated 

August 2006Started implementing Lean

2010‐CompletedBlack BeltCertifications

2009Partnered with Purdue MEP ‐Completed 

2011Reorganized company into value streamsp Lean 

‐Completed  Advanced Lean   C tifi ti

pGreen Belt  Certification‐Completed   I t d t t CertificationsIntroductory to Lean Training‐ OEE Boards

Associate Communication from S d d C A i LStandard Cost Accounting to Lean

• Initial Inventory adjustments impacted the financial statements negativelystatements negatively

• Standard cost accounting encouraged mass production• At Plant Meeting we were communicating to associates g gin standard cost variances and the associates were getting confused with the complexity (Efficiency Variances))

• Streamlined the communication to include performance matrix that they deal with daily on the production floorproduction floor

• Real Numbers by Jean E. Cunningham and Orest J. Fiume is a great resource that helped us understand how to translate standard cost accounting into leanhow to translate standard cost accounting into lean measurables (Inventory Reductions)

Performance Communication To AssociatesCustomer Satisfaction Automotive

Metrics - March 2011 2011 2010 2011 Goal CommentsCustomer PPM Monthly 35 ppm 108.5 ppm 0 ppm 21 pieces for delamination and warp for JS

C t PPM YTD 32 3 39 3 15

Customer Satisfaction - Automotive

Customer PPM YTD 32.3 ppm 39.3 ppm 15 ppm 11 pieces for 920/930 due to Spun Bond Wrinkles and Delamination

On Time Delivery Monthly 99.98% 99.08% 100% Expedited to Webasto due to Quality Issues

ON Time Delivery YTD 99.99% 99.27% 100%$ $ $Expedited Freight Monthly $522.50 $1,409.00 $0

Expedited Freight YTD $522.50 $2,169.00 $0

Metrics - March 2011 2011 2010 2011 Goal CommentsCustomer FPM Monthly 450 fpm 0 fpm 0 fpm Reeves Rejection

Customer Satisfaction - Extruder

Custo e o t y 50 p 0 p 0 p ee es eject oCustomer FPM YTD 380 fpm 550 fpm 100 fpmOn Time Delivery Monthly 100.00% N/A 100%ON Time Delivery YTD 100.00% N/A 100%ON Time Delivery YTD 100.00% N/A 100%Expedited Freight Monthly $0.00 $790.00 $0Expedited Freight YTD $0.00 $2,440.00 $0

M t i M h 2011 2011 2010 2011 G l C tCost and Productivity

Performance Communication To Associates

Metrics - March 2011 2011 2010 2011 Goal CommentsAbsenteeism 3.71% 1.83%Vacation 2.54% 3.79%Total 10% Oji Intertech plans for 10%Scrap Automotive 3.00% 4.20% 4.10%Scrap Automotive 3.00% 4.20% 4.10%Scrap Extruder 4.0% 4.90% 5%Automotive Inventory TurnsRaw 32.3 23.7 25.2WIP 61.8 47.9 45.2Finished 90 74 67.2Total 17.2 13.1 13.2Extruder Inventory TurnsRaw 20.3 18.4 18.2WIP 81 4 36 7 75WIP 81.4 36.7 75Finished 13.2 14.3 12Total 7.3 6.6 6.2OEE March February TargetOne Pass Line 81.61% 67.60% 65.00%900 Line 91.33% 85.40% 85.00%Cell # 1 100.49% 83.50% 83.50%Cell # 2 78.17% 81.60% 80.00%Auto Die 116.09% 113.60% 90.00%Mi ll A bl 102 46% 96 10% 85 00%Miscellaneous Assembly 102.46% 96.10% 85.00%Extruder 83.58% 82.50% 75.00%Rewinder 113.81% 123.30% 90.00%

Performance Communication To Associates

M t i M h 2011 2011 2010 2011 G l C tInjuries

Metrics - March 2011 2011 2010 2011 Goal CommentsNear Miss Monthly 3 0N Mi YTD 5 0Near Miss YTD 5 0Minor Injuries Monthly 0 1 0Mi I j i Y T D t 6 5 0Minor Injuries Year To Date 6 5 0Recordable Injuries Monthly 1 2 0R d bl I j i YTD 3 6 0Recordable Injuries YTD 3 6 0Lost Time Accidents Monthly 0 0 0L t Ti A id t YTD 0 1 0Lost Time Accidents YTD 0 1 0

Structuring Organization into Value Streams

• Production Manager had responsibilities for all production operations

• Restructured the organization so each value stream had a manager that will be responsible from customer ordering to final shippingcustomer ordering to final shipping.

• The manager can evaluate the value stream for any wasted activity and take appropriate correctivewasted activity and take appropriate corrective actions

• Lean Thinking by James P Womack and Daniel• Lean Thinking by James P. Womack and Daniel T. Jones provided the framework we used to structure the organization into value streamsstructure the organization into value streams

Industrial Packaging Product LineIndustrial Packaging Product Line

F‐10 Product lineF 10 Product line

PPF Product LinePPF Product Line

Value Stream Mapping

• Value Stream DefinitionValue Stream Definition

“The specific actions required to design, order, and provide specific product, from concept to launch, p p p , p ,order to delivery, and raw materials into the hands of the customer.” – Lean Thinking

• By mapping our processes it provided a visual tool to identify where we wanted to make process 

h h l d limprovements within the value stream and always striving towards a future state.

Developing Improvement Plan and Utilizing A3 F P bl S l i d L L dFor Problem Solving and Lessons Learned

• Once we established our future state we developedOnce we established our future state we developed an improvement plan to provide a road map to achieve the items identified.

• The Value Stream Manager utilizes the A3 format to guide the team members in the improvement process.

A3 – Poly Coating Splattering 

Lessons Learned26 years of  Focused 1. Organized Received Completed

Step 1 Step 2 Step 3 Step 4y

operating under mass production system Culture

Implementingthe House ofLean

ginto three value streams

2 Moved

training grantto complete Lean/Six Sigma training

pBlack BeltProject

Started TPMsystem.  Culture was set in mass production thinking.

Started with Kanban tocreate pull

2. Moved towardsLeanAccounting

Sigma training

Completed three Green 

Started TPM At ExtrusionCoating line

Belt projects 

OrganizedI t l

Focused on 5S, t d d k

Focused on i l ti

Partnered ith P dInto value

streams andtransition toLean

standard work, and stabilizing the processes before 

implementing the rest of the lean tools.

with PurdueMEP for SixSigma  Training and 

1980Company  was Incorporated 

Accounting.Partnered with Purdue MEP for Lean

establishing thepull systemwith Kanban .

gimplementedskills for processImprovements

p

MEP for Lean ManufacturingTraining.

Step 1 Step 2 Step 3

Improvements.

Step 4

QUESTIONSQUESTIONS