LEAN Success & Initiatives

The fourth quarter of 2009 saw some interesting changes as we continued to set new sales records and records for on time delivery performance. A major change was the addition of hour by hour measurements of performance at the trim and molding operations through the use of a control chart. This control chart allows us to view the hour by hour throughput performance and identify any major issues immediately. This is a giant step forward, in terms of LEAN, as we move from a review of our performance after the order has been completed to an hour by hour review of our performance as the order is being processed.

Another significant step forward in LEAN was creating flow at the Robots. The first step was to minimize down time and then determine the optimum lot size based on Job size. Jobs were produced at a quantity of 15,000 parts and then transferred to subsequent processing steps. 5,000 pieces was selected based on the number of parts molded per hour and a safety factor. Flow created visibility to product output, equipment downtime, and enabled the team to meet on time delivery.

Key to the success of LEAN is a paradigm shift from an organization of departments to an organization that works together within a process. In the traditional model, departments are organized based on performing a function and possessing specialized skills and/or training that is held within the walls of the department (e.g., molders can only mold, trimmers can only trim, only QA can check or inspect, etc.). In a LEAN environment, all of the departments become the process and the success of the process is contingent on communication, cross training, and a common understanding of the process among all, not the individual department. We began our shift by having the molders and trimmers work together as jobs are stated at the molding station. Trimmers share their knowledge of the part in terms of aesthetics so molders know what to look for at the molding operation (instead of waiting until all parts are molded, post cured, etc.). Issues are identified earlier on in the process saving time, money, and improving our quality.

We are raising the bar. We are expecting that higher standards be met by everyone supporting the manufacturing team. We are working to provide feedback on any issues identified from documentation, instructions, training, etc. In addition, new job feedback on tooling, molding, trimming, and any other aspect of the job will now be captured on a manufacturing feedback sheet which is to be reviewed at the completion of the job. This feedback will lead to less scrap, less downtime, higher productivity, and improved quality.

The results, of the above activities, are apparent in our monthly key indicators. There has been a significant improvement in productivity, defective parts per million, on time delivery, etc., from our 2008 baselines. With aggressive goals set for the operations team in 2010, continued work toward all LEAN initiatives will be a top priority.

The 2010 focus of the Sil-Pro Operations Team is the Customer. In order to continue to delight our customers, the Sil-Pro Operations Team will need to continue to improve in many areas. The Operations Team has established aggressive goals for 2010:

• 95% OTD Minimum
• Increase Productivity by 15%
• Reduce Scrap by 30%
• Reduce Lead Time by 20%
• Reduce Internal and External Quality Issues by 30%

To be successful and achieve our goals, four key elements must be in place. The first is to have goals established that stretch us and at the same time be achievable. The second is to have a plan, fully supported by management, with enough detail so we know what is to be done, who will do it, and when it is to be completed. The third is to have measures in place so we can review our performance against the plan. The performance indicators, or measures, give all employees at Sil-Pro and idea as to our progress. The fourth item is execution of the plan. We need to ensure that the resources necessary are available and that we carry out the plan on schedule.All four elements are now in place for 2010.

Key objectives of the Operations plan are:

• JobBoss and uniPoint Systems Training
• Problem Solving Training
• Data and Information accessible at the Operator Level
• Integrated Inspection upstream in the Process
• Process Control and Statistical Process Control
• 5S and Safety

In order for us to be successful in 2010 (Operations, Sil-Pro, our Customers), the Operations Team will need to execute our plan on schedule and use our new skills and systems to drive change and improvement.