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Implementing Non-Manufacturing Lean: One Companys Experience

About Braas Company. Distributor of products and solutions for Industrial Automation 100% employee owned ? 75% by an ESOP trust and 25% by individual employeesApproximately 100 employeesOffices in MN, WI, FL, IA, NE, IL. Why Lean Administration?. ?Good is the enemy of great' ? Jim Collins Good to

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Implementing Non-Manufacturing Lean: One Companys Experience

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    1. Implementing Non-Manufacturing Lean: One Company's Experience

    2. About Braas Company Distributor of products and solutions for Industrial Automation 100% employee owned – 75% by an ESOP trust and 25% by individual employees Approximately 100 employees Offices in MN, WI, FL, IA, NE, IL

    3. Why Lean Administration? ‘Good is the enemy of great’ – Jim Collins Good to Great Desire for better customer service Desire for improved financial performance Waste is prevalent and must be minimized Many lean tools available & applicable

    4. First Steps Along the Lean Journey at Braas Top Mgm’t Commitment – Nov 2003 Consultant Selection- July 2004 Introduced Kaizen Events – Oct 2004 Introduced 6S – Mar 2005 Began Policy Deployment – July 2005 Introducing HPS – Nov 2005

    5. Top Management Commitment Vision began with example from a supplier (2003) Previous CEO helped us create our vision and begin our journey (2004) Current CEO and management team are committed to the journey Requires a cultural change across the organization

    6. Consultants Challenges Not many consultants with Lean office experience Matching Consultant personality with Company culture Flexibility of the consultant Cost

    7. Consultants Benefits Experienced trainer and mentor Event leader/facilitator Broad range of experiences Challenges our current thinking Management coach for Lean transformation ‘Task Master’

    8. Kaizen Events - Challenges Opportunities abound but may be difficult to identify Kaizen events tend to be complex - Simpler projects yield minimal results (CI) Baseline data may not exist Establishing measurable goals not easy

    9. Kaizen Events - Challenges Concurrent team facilitation and team participation Mentally exhausting Only a small number of employees share the experience and learning Sustaining results

    10. Kaizen events - Benefits Generally cross functional in nature First hand learning opportunity Value Stream Map Swim Lane Diagram Process Flow Diagram Kaizen Newspaper Plus / Delta

    11. Swim Lane Map

    12. Kaizen Newspaper

    13. Plus / Delta Daily wrap up during the Kaizen event What went right? What needs to be changed or improved upon? Anything is ok to mention

    14. Kaizen events - Benefits Excellent team building experience Strong sense of accomplishment Potentially powerful results

    15. Kaizen Events Tackled On Time Delivery Customer Account Holds New Employee Orientation & Training CRM Design Criteria

    16. Event results Implemented an on time delivery metric with current accuracy of 76% (OTD) Increased one touch order entry from 70% to a sustained 87% (On Hold) Implemented a pre hire and post hire process for customer service Developed a CRM design specification

    17. Lessons learned We CAN work together for 5 straight days and nobody left! There is a lot of knowledge within Braas that when focused on an issue can yield great results. It’s OK and even good to fail early (and often). What seems easy and simple on the surface isn’t always that easy and simple.

    18. Lessons learned – cont. Consistency of process, definition of terms and follow up is critical. Kaizen events can help knock down walls between departments. Sustaining gains takes a lot of effort and energy.

    19. 6S Early Results Recycled 8 skids of old IT ‘stuff’ plus donated 26 monitors & office supplies to schools Application engineering removed 5 file cabinets, two book cases and other miscellaneous of ‘stuff’ Work areas more organized and functional Better record retention schedule need surfaced Good start

    26. OK, So Now What? Kaizen events were interesting and worthwhile but how do we decide what to do next? 6S has some benefits but how do we decide what is really important to the organization? What can we do to steer the culture toward improvements?

    27. Policy Deployment “Aligning and focusing our efforts to execute our strategy and achieve our vision.”

    28. Terminology Vision - Where are we going? What do we want to be? Can you see where we want to be in the future? (10 – 20 years) Strategy – What is the high level view for ‘how’ we are going to achieve our vision? (5 – 10 years) Initiatives – Where will we focus our efforts and limited resources? (1 – 3 years)

    29. Terminology – cont. Goals & Objectives – What are the tangible and actionable items that reflect the business strategy? (1 year)

    30. Braas Company Vision “We will be a global supplier of world-class automation solutions”

    31. Braas Company Strategies Improve Sales Effectiveness Seek Products and Suppliers for Long-term Growth Grow High Value Services Geographic Expansion

    32. Braas Company Initiatives Meet revenue budget goals Improve GM rate Continued expansion of Lean Implementation of CRM tool

    33. Braas Company Objectives Achieve an annual operating income of X% Invest in Braas for long-term financial stability and health

    34. Braas Company Goals Achieve sales revenue of $X for FY06 Achieve overall GM of Y% for FY06 Achieve effective implementation of PD by end of FY06 Fully operational CRM by end of FY06

    36. Initiative Tracking & Reporting

    37. Policy Deployment Focuses the organization and its resources on the critical few initiatives Provides a method for de-selecting non critical activities Ensures everyone is working toward the same ends Minimizes wasteful use of scarce resources

    38. High Performance Supervision Involves supervisors and other functional area leaders and their staff Identifies key metrics for each area Creates a link from the strategic plan and PD initiatives to front line activities Helps drives improvement actions to all levels of the organization

    39. Wrap up Lots of tools available Value stream mapping Kaizen events 6S Standard work Six sigma Policy deployment and HPS are methods that use the various tools

    40. Our rate of improvement must increase for us to prosper Our world is different today and will be different again tomorrow Improvement must be methodical and transferable Technology can be an enabler or destroyer of growth or improvement – it’ not a silver bullet Continuous improvement is a process not a project Continuous improvement will be our competitive advantage

    41. Conclusions A Lean way of life is essential for our success A Lean transformation requires a cultural adjustment Lean administration is a ‘new frontier’ worth exploring Lean is a journey we must embrace to thrive

    42. Contact Information Tim Bloudek 7970 Wallace Rd Eden Prairie, MN 55344 952-937-6566 direct phone 952-949-6061 direct fax timb@Braasco.com email www.braasco.com website Tbloudek SKYPE number

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