Agenda. 1. Background 2. Lean Path 3. Lean Accounting Role 4. Lessons Learned 5. Next Steps 6. Questions / Answers

Transcription

1 Agenda 1. Background 2. Lean Path 3. Lean Accounting Role 4. Lessons Learned 5. Next Steps 6. Questions / Answers 1

2 Facility Overview 65,000 sq. ft. 35,000 Air-Conditioned Mfg. 25,000 Warehouse 5,000 Office 50,000 sq. ft. Additional Expansion Space Acquired 2009 Custom Injection Molding 24 Machines 20 to 500 US Tons Part Size.5g to 30 oz Engineered Thermoplastics (over 50 active resins) 300 SKU s Integrated Automation 3 Quality Test Stations Climate Controlled 2

3 Custom Extrusion & Injection Stretch Blow Molding 15 Machines Container Size.5oz to 1 Gallon Materials HDPE LDPE PP PVC PETG PET 70 SKU s Integrated Automation & Leak testing SPC Inspection Station Climate Controlled Responsiveness / Reliability V² =Velocity x Value The combination of speed or true velocity in everything we do combined with superior value that incorporates total quality, operational precision & efficiency and established organizational core values. 3

4 Lean Enterprise (V 2 ) Process Map Value Stream Org S s Standardized Work Value Stream Mapping Targeted Kaizen & 6 Sigma Projects Capability Development Lean Accounting Strategic Planning Currier Plastics Notables Strategic Framework* One Page Plans Benchmarking Lean Accounting* Financing Technical & Leadership Development* QWL / Quad Strat Recruitment / Interview Process Profit Sharing* Skills Continuum Temporary Labor Use * - covered in today s presentation V 2 = Value x Velocity* TWI (JI, JR, JM)* 6S s SPC / CpK s /QRC Visual Management* Set-up Reduction TPM Kanban SCM Strategy/Lean Logistics Machine Modernization NPD Process Production Monitoring* Safety Integration 4

5 Leading Cultural Transformation There is no magic pill, it takes consistent, visible, active, persistent, perceptive and passionate leadership from the top down The ultimate objective is development of leadership, everywhere in the organization Self directed, self correcting, self improving (fully empowered) Ingredients: Skill, Will, Authority, Information Currier Plastics Strategic Framework Strengthen individual & team performance Set world class benchmark for operational excellence Strategic customer alliance and targeted investments 5

6 Key Result Measures Numbers shown are for illustrative purposes only Awards / Customer Recognition 6

7 Results Metric Units Change Sales normalized % Ann. Profit normalized % Cost of Quality % of Sales 6.3% 1.7% -73.0% Efficiency % Possible 76.5% 90.2% 17.9% On Time Delivery Acknowledged 88.8% 99.5% 12.0% Total Inventory Days of Supply % 6S Audits % Possible 33% 81% 145.5% Quality of Worklife Survey Results 71% 84% 18.3% Getting Started w/ Lean Accounting 1. Plastics News Executive Forum 2. Lean Accounting Summit (CFO) 3. Al s Experience (Lean/Parker) 4. Currier Plastics Vision 5. BMA Workshop 6. Strategic Project 7. Patience, Persistence & Perseverance 8. Expansion 7

8 Lean Accounting Mechanics 1. Use income statement as template 2. Map data into box score format 3. Automate (custom reports) 4. Categorize General Ledger: 1. System fed 2. Fixed cost 3. Averaging 5. Backflush materials 8

9 Lean Accounting Information Feeds 1. Production Report (OEE, PDT, Util.) 2. OTD report 3. Material Transactions 4. Packaging 5. G/L download 6. Box Score Master 7. Stock Status 8. Revenue/Tooling Red Custom Report from ERP system 9

10 CPI Lean Accounting Value Stream Box Scores Timely Accurate Meaningful Understandable Improved Decision Making and Problem Solving Numbers shown are for illustrative purposes only Four Up Charts Overall Efficiency Productive Downtime 100.0% 14.0% 95.0% 12.0% Actual Goal 90.0% 85.0% 10.0% Act ual Trend 80.0% 75.0% Act ual Goal 8.0% 6.0% 70.0% 0% 65.0% Act ual Trend 4.0% 60.0% 2.0% 55.0% 50.0% 7-Sep 21-Sep 5-Oct 19-Oct 2-Nov 16-Nov 30-Nov 14-Dec 28-Dec 11-Jan 25-Jan 8-Feb 22-Feb 8-Mar 22-Mar 5-Apr 19-Apr 3-May 17-May 31-May 14-Jun 28-Jun 12-Jul 26-Jul 9-Aug 23-Aug 6-Sep 20-Sep 4-Oct 18-Oct 1-Nov 15-Nov 29-Nov 13-Dec 27-Dec 10-Jan 0.0% 9/7/2008 9/21/ /5/ /19/ /2/ /16/ /30/ /14/ /28/2008 1/11/2009 1/25/2009 2/8/2009 2/22/2009 3/8/2009 3/22/2009 4/5/2009 4/19/2009 5/3/2009 5/17/2009 5/31/2009 6/14/2009 6/28/2009 7/12/2009 7/26/2009 8/9/2009 8/23/2009 9/6/2009 9/20/ /4/ /18/ /1/ /15/ /29/ /13/ /27/2009 1/10/2010 On Time Delivery Cost of Quality 100.0% 5.0% 4.5% Act ual Goal 95.0% 90.0% Actual Goal Act ual Trend 4.0% 3.5% 3.0% Act ual Trend 85.0% 2.5% 2.0% 80.0% 1.5% 75.0% 1.0% 0.5% 70.0% 7-Sep 21-Sep 5-Oct 19-Oct 2-Nov 16-Nov 30-Nov 14-Dec 28-Dec 11-Jan 25-Jan 8-Feb 22-Feb 8-Mar 22-Mar 5-Apr 19-Apr 3-May 17-May 31-May 14-Jun 28-Jun 12-Jul 26-Jul 9-Aug 23-Aug 6-Sep 20-Sep 4-Oct 18-Oct 1-Nov 15-Nov 29-Nov 13-Dec 27-Dec 10-Jan 0.0% 7-Sep 21-Sep 5-Oct 19-Oct 2-Nov 16-Nov 30-Nov 14-Dec 28-Dec 11-Jan 25-Jan 8-Feb 22-Feb 8-Mar 22-Mar 5-Apr 19-Apr 3-May 17-May 31-May 14-Jun 28-Jun 12-Jul 26-Jul 9-Aug 23-Aug 6-Sep 20-Sep 4-Oct 18-Oct 1-Nov 15-Nov 29-Nov 13-Dec 27-Dec 10-Jan Numbers shown are for illustrative purposes only 10

11 Conflicts Overcome Basic Accounting Understanding Terminology Education Credibility & Confidence Bank had to fight the people, not the numbers How is the Extra Time Spent? More Meaningful Corrective Action Continuous Improvement Employee Development Work on what happened and how Work on what happened and how do we do it better, verses generating and questioning numbers 11

12 Information Use? 1. Customer Rationalization 2. Break Even Analysis 3. Machine Rates 4. Make vs. Buy 5. Product Rationalization 6. New Capital Investment 7. Problem Solving 8. Profit Sharing Culture Change Essence of V-Squared Aids Speed of Decision Making Facilitates Ownership/Stake Facilitates Cause/Effect (6 Sigma & CI) lean isn t a set of tools, it s a way of life 12

13 Lean Accounting - Transaction Elimination Temp. Labor Timekeeping Eliminated Three Way Match - P.O.'s, invoices and packing slips Check Run - Eliminated Three Transactions Monthly Journal Entries Eliminated Loans/Leases - Eliminated Three Transactions Recurring Purchase - Eliminated Three Transactions 13

14 Other Improvement Drivers Talent Management: Right People in the Right Place (by Value Stream) Top Down Top Grading Self Directed, Flexible Workforce Core Competency focused Technical Training Program Equipment Modernization Supply Chain Management Training & Coaching 14

15 Lessons Learned Strategic linkage is critical Test/validate more Flow map via kaizen with broad participation Involve suppliers early it takes more time than you think to do it right Path Forward Profit Sharing effectiveness Transaction elimination/flow i simplification Eliminate financial statements entirely Minimize allocations 15

16 Disciplined People using Disciplined Thought applying Disciplined Action Adapted from Jim Collins 16