SALES PROSPECTING KIT

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1 Distributed by: SALES PROSPECTING KIT LEAN MANUFACTURING LAST UPDATED 4/2009

2 What is Lean Manufacturing? Lean manufacturing is an improvement methodology designed to eliminate waste and improve operational efficiency. Lean serves as a key tool in many operational excellence and world-class manufacturing initiatives. Lean Adoption in North America Over 70% of U.S. manufacturers and 50% of Canadian manufacturers have adopted lean practices, making lean the most widely used manufacturing improvement methodology in North America (twice as popular as Six Sigma). The main driving force behind this trend is the need to remain competitive with low-cost overseas manufacturers. Overview of Lean Concepts Lean concepts are often graphically represented as a house. The foundational concepts are used to establish a base of operational stability and a work culture dedicated to continuous improvement. The left pillar shows the lean tools used to smooth and speed the flow of product through the production system. The tools in the right column are employed to ensure optimum quality. The roof of the house displays the benefits that result from adopting the lean system. Lean Foundational Concepts 5S Workplace Organization: 5-step technique (sort, shine, set-in-place, standardize, sustain) used to maintain a clean and orderly work environment. Standard Work: Method used to standardize how tasks are performed in order to simplify training, promote adherence to best practices, and improve consistency between workers (tie-in with ISO9001). Total Productive Maintenance (TPM): Program whereby responsibility for equipment care and improvement is shared by maintenance, operations and engineering, with a focus on reliability (preventing or predicting failures before they occur) over repair (fixing equipment after it breaks down). Kaizen: Program whereby shop floor employees are tasked with continuously improving the processes that impact their work. Sometimes kicked off as a 3-5 day intensive event targeting a specific work area (called a kaizen blitz). Visual Workplace (aka Visual Factory): The use of visual devices such as signs, tags and labels to post critical operating information at the point of use, ensuring that lean improvements and best practices remain clearly visible, readily understood, and consistently adhered to by all employees. See glossary at the end of this document for an explanation of other lean terms.

3 The Role of Visual Workplace in Lean Manufacturing Visuals Eliminate Information Deficits A primary cause of waste is information deficits employees lack the knowledge they need to do their jobs efficiently and effectively. This leads employees to waste valuable time asking, searching, waiting, or just giving up. A visual workplace eliminates questions, significantly enhancing worker productivity and efficiency. In a visual workplace, information critical to the manufacturing process is built right into the physical environment. The visual devices are positioned at the point of use and are designed to be easily understood at a glance, thereby eliminating information deficits that lead to wasted time and motion. To better understand the benefits, think about the visual devices used on our roads and highways. Lane indicators guide our path, while traffic signals control flow at intersections. Street signs provide direction and parking spaces instruct us where store our vehicles when not in use. These visual devices are so embedded in the environment that we hardly even notice them. But their function is critical to the smooth flow of goods and people along our nation's roadways. Visuals are just as important in the workplace! Visuals Enhance Operational Stability Visuals are key to maintaining operational stability in 5S, Standard Work and TPM programs. The examples below show how visuals help to stabilize the work environment, work procedures and equipment/process reliability. 5S Visuals Standard Work Visuals TPM Visuals Visuals Sustain Continuous Improvement Efforts Visuals are also critical to the success of kaizen continuous improvement programs. It is important to keep in mind that a continuously improving work environment is also a constantly changing work environment. Kaizen practitioners report that keeping employees informed of evolving best practices and preventing the natural tendency to revert back to old habits is a major hurdle. The use of visuals helps to ensure that new standards remain clearly visible, readily understood, and consistently adhered to by all employees. Visual Workplace Sustains lean improvements! VW Improvement Cycle Plan Do Act Check Time Improvement

4 TARGET CUSTOMERS Lean manufacturing techniques are being employed by both large and small production facilities across virtually all industrial sectors. This includes both discrete manufacturers (eg. durable goods makers, parts suppliers) and process industries (eg, petrochem, food & beverage). Even institutions like hospitals, universities and military bases are using lean to eliminate waste and improve efficiency. Lean initiatives are typically led by manufacturing managers and production engineers on the Operations side of the business. Maintenance, Safety, Logistics and Warehousing also play supporting roles (but typically are not the key decision makers). People and departments with the following terms in their titles represent excellent prospects. Operational excellence, world class manufacturing, lean manufacturing Kaizen, continuous improvement, process improvement, business performance, value stream Equipment / process reliability, asset care, TPM SALES OPPORTUNITY Average expected anticipated sales of Brady product to lean manufacturers. Corporate (Multi-Plant) $100,000 - $250,000 KEY BRADY PRODUCTS Primary visual workplace solutions for the lean market: Industrial label printers (eg, GlobalMark 2, MiniMark, HandiMark ) MarkWare Lean Tools software Workbench, tool board and floor marking supplies Large-format information display boards, placards and signs Single Plant Small or maintaining: $10,000 - $20,000 Large or just starting: $25,000 - $50,000 Additional cross-selling opportunities: Facility identification (eg, pipemarking, safety signage, equipment ID) Services (eg, facility marking assessment, procedure writing service) Lockout / tagout solutions Sorbents SELLING & TRAINING TOOLS Lean prospecting questionnaire (see next page) Distributor training module for lean ( Visual workplace website ( White papers: Sustain Lean Gains and Equipment Reliability Made Visual (download from website) Visual Workplace Solutions For Lean Enterprises catalog (order Y or download from website) Product sell sheets: MarkWare (Y893136), GlobalMark (MS3312), HandiMark (MS3048) Brady Visual Workplace Awareness presentation (download from website)

5 Company: Lean Questionnaire Use this questionnaire to qualify potential customers. Discuss the results with your Brady Territory Manager to determine the best course of action. Contact: Phone: 1. Has your facility initiated any manufacturing improvement programs? c Lean manufacturing c Six Sigma c Total Quality Management c Other: 2. Do you use any of the lean concepts shown? c Kaizen (continuous improvement) c 5S (workplace organization) c Standard Work c Total Productive Maintenance c Other 3. Do you have people that perform the following roles? c Operational excellence / world class manufacturing manager c Lean coordinator, kaizen facilitator, continuous improvement manager c TPM / reliability / asset care manager Note names & titles: 4. How would you rank your company s lean expertise? c Beginner c Intermediate c Advanced 5. Have you implemented any of the following reliability improvement programs? Autonomous maintenance (operator-based care) Yes No Unsure Preventative maintenance (scheduled inspection & replacement) Yes No Unsure Predictive maintenance (ie, oil, vibration and thermal testing) Yes No Unsure 6. Is improving equipment reliability & performance a key mgmt goal? Yes No Unsure 7. Have you experienced difficulty sustaining lean improvements & best practices (for example, due to employees forgetting training or reverting to old habits)? Yes No Unsure 8. Are your lean and reliability improvement efforts strictly plant driven, or does corporate provide some level of direction or assistance? Corp. Plant Unsure How many plants does your company / division have in the USA?

6 Sales Prospecting Kit - Lean Manufacturing KEY LEAN & RELIABILITY TERMS 5S (Sort, Shine, Set in Place, Standardize, Sustain): technique used to maintain a clean and orderly work environment 5Y s: technique used to facilitate problem solving whereby the investigating team asks Why did that happen? each time a cause is identified in order to work back towards the true root cause. Autonomous maintenance: operators assume responsibility for routine care and inspection of equipment, freeing maintenance for more technical, value-added tasks. Cellular manufacturing: method of arranging production processes and equipment so as to minimize the distance that product and people must travel between stages. Error proofing (aka pokayoke): use of creative countermeasures and inexpensive devices to detect and prevent quality defects from passing through to the next production stage. Just in time (JIT): Inventory control method whereby raw materials, parts and semi-finished goods are delivered to the downstream production process just when needed. Kaizen: continuous improvement effort driven by shop floor employees; sometimes done as a 3-5 day intensive workshop (called a kaizen event) targeting a specific work area. Kanban: pull-style system whereby production is driven by actual customer demand and inventory depletion (vs push production system which is driven by sales forecasts) Man-machine synergy (autonomation): achieving the optimum balance between automation and manual tasks. One-piece flow: concept of reducing production lot sizes (ideally to one unit of product) in order to minimize work-in-progress inventory and shorten lead times. Predictive maintenance: use of tools such as oil analysis, vibration monitoring, infrared and ultrasound measurements to facilitate early detection (and correction) of potential failures. Preventative maintenance: scheduled parts inspection and replacement performed in order avoid equipment breakdowns and unplanned downtime. Standard work: method used to standardize and document how tasks are performed in order to simplify training and enhance efficiency and consistency between workers. Quick Changeover (aka SMED: Single Minute Exchange of Dies): method used to reduce changeover & setup times to promote flexible scheduling of multiple products on one line. Total productive maintenance (TPM): equipment improvement program where responsibilities are shared by maintenance, operations, and engineering. Includes autonomous, preventative, and predictive maintenance concepts, as well as other maintenance reliability techniques. Visual workplace (aka visual factory): use of visual devices such as signs, tags, and labels to post critical operating information at the point of use, ensuring that lean improvements and best practices remain clearly visible, readily understood, and consistently adhered to by all employees. Distributed by: Brady Worldwide Inc., All Rights Reserved