Continuous Improvement

1. Continuous Improvement Wabash Manufacturing Systems

2. What is Continuous Improvement ? • A continuous process of working towards achieving incremental gains in the lean indicators using cross functional teams. • Typical CI tools includes 5S, TPM, Standard Work, SMED, Variation Reduction, Safety and Ergonomics analysis, etc…

3. Lean Indicators and Definitions • Lead Time – the time from customer approval to perform work to delivery of completed work to the customer • Inventory – the amount of on hand materials needed to do the job • Floor Space – the amount of space needed to do the job • Productivity - number of labor hours per order • Distance Traveled- the walking distance per cycle

4. The 4 Tenets of Employee Involvement • Learn By doing • Teach By doing • Use the subject matter experts to obtain ideas and implement them • By focusing on those adding value, you are focusing on the customer

5. The 10 Commandments of Continuous Improvement • Abandon fixed ideas. • Think of ways to make it possible. • No excuses needed. • Go for the simple solution, not the perfect one. • Correct mistakes right away. • Use your wits, not your wallet. • Problems are opportunities. • Repeat “Why?” five times. • Seek ideas from many people. • There is no end to improvement.

6. “Profits are made or lost on the shop floor … plain and simple.” -Bill Greubel President & C.E.O.

7. 5S at Wabash National A tool and strategy to develop improvement activities in our workplace.

8. What is 5S? An easy definition is: Finding aplace for everything and putting everything in its place. 5S is also the beginning point for continuous improvement (CI). Lastly, 5S is vital to our jobsandto Wabash National’s security.

9. What 5S isn’t . . . • A program • A one time event • Voluntary • Something we tried before • A cleanup to “sell the branch” • Too hard because we are “busy”

10. Why do we need 5S? “We must be better today than we were yesterday, and better tomorrow than we are today” – Dick Giromini, C.O.O. Wabash National Corporation To remain in business we have to accept change 5S will allow us to reorganize and grow to be a stronger company

11. 5S is a tool to help eliminate Waste • Transportation – Parts delivered to a standard, mapped location. • Overproduction – One piece flow. • Motion – Place tools near the point of use. • Defects – Standard Operating Procedures. • Waiting – Balancing operator work. • Inventory – A min/max system to ensure the proper amount of parts are in the area. • Process – a clean, bright workplace to remove extra steps in process.

12. 48 87 45 72 30 33 27 3 69 51 21 24 18 9 57 75 54 6 78 36 63 60 15 12 81 Imagine this represents your shop floor, can you find number 4? 42 39 84 66 90 53 2 68 80 77 86 62 74 29 65 5 41 20 23 35 56 32 89 44 8 83 50 26 47 17 11 38 71 59 14 31 64 49 34 61 7 28 54 40 16 52 58 76 10 22 88 73 85 1 43 4 82 25 13 37 19 67 79 46 70

13. What does 5S stand for? • Sort (Seiri) • Set In Order (Seiton) • Shine (Seiso) • Standardize (Seiketsu) • Sustain (Shitsuke)

14. What does SORT mean? SORT means we remove all items from the workplace that are not needed for current production (parts, tools, equipment, etc). Once we complete the sort process for tools in a work area, we must develop a standard list of tools that belong in this area and validate the area is kept free from non-needed items 30,60 and even 90 days from the initial sort.

15. 48 45 30 33 27 3 21 24 18 9 6 36 15 12 Imagine this represents your shop floor after sort, can you find number 4 easier? 42 39 2 29 5 41 20 23 35 32 44 8 26 47 17 11 38 14 31 49 34 7 28 40 16 10 22 1 43 4 25 13 37 19 46

16. Sort - Before and After

17. Sort - Before and After

18. What is SET IN ORDER? SET IN ORDER means we arrange items so they are easy to use, and labeling them so they are easy to find and put away. It begins with eliminating waste. Once we set in order for tools, we must standardize the locations for the tools and audit to the Set-In Order 30,60 and 90 days from the initial set in order.

19. 48 45 30 33 27 3 21 24 18 9 Imagine this represents your shop floor after set in order with labeled racks, can you find number 7? 6 36 15 12 42 39 Part # 3,12,21,30,39,48 Part # 9,18,27,36,45 2 29 5 41 20 23 35 32 44 8 26 47 17 11 38 14 Part # 8,17,26,35,44 Part # 2,11,20,29,38,47 31 49 34 7 28 40 16 10 22 1 43 4 25 13 37 19 46 Part # 7,16,25,34,43 Part # 1,10,19,28,37,46 Part # 4,13,22,31,40

20. SET IN ORDER - Example

21. SET IN ORDER - Example

22. Set In Order Violations

23. SET IN ORDER – Before and After

24. What is SHINE? SHINE means keeping everything swept and everything clean. It means keeping everything in top working condition so that it may be used when it is needed. Once we shine, we must standardize our housekeeping requirements and audit to this standard 30, 60 and 90 days from the initial shine

25. SHINE - Example

26. SHINE - Example It takes everyone to succeed!!! VP of Manufacturing – Jerry Linzey

27. SHINE Example of Housekeeping Map

28. What is STANDARDIZATION? STANDARDIZATION exists when the first three S’s are properly maintained. It means we develop methods to SORT, SET IN ORDER, and SHINE our workplace. It means we define everything so everyone will know exactly what we are responsible for; and, exactly when, where, and, how to do it.

29. Numbers from 1 to 49 2 10 4 7 8 6 3 5 9 1 16 20 15 17 18 11 19 14 12 13 Imagine this represents your shop floor after standardize, can you find number 7? 21 24 25 27 28 22 26 30 23 29 32 31 33 36 37 34 39 38 40 35 41 47 44 43 45 49 48 42 46

30. STANDARDIZE - Examples

31. What is SUSTAIN? We SORT areas. We SET IN ORDER work places. We SHINE areas. With STANDARDIZATION it is easy to identify anything out of place. SUSTAIN is different. It isn’t a single separate activity. We SUSTAIN when we have developed habits of always using the first 4 S’s together on a daily basis.

32. 48 87 45 72 30 33 27 3 69 51 21 24 9 57 75 54 6 78 36 63 60 15 12 81 39 84 66 90 53 2 68 80 77 86 62 74 29 65 5 41 20 23 35 Imagine this represents your shop floor, can you find which number is missing? 56 32 89 44 8 83 50 26 47 17 11 38 71 59 14 31 64 49 34 61 7 28 55 40 16 52 58 76 10 22 88 73 85 1 43 4 82 25 13 37 19 67 79 46 70

33. Numbers from 1 to 49 Imagine this represents your shop floor, can you find which number is missing? 2 10 4 7 8 6 3 5 9 1 16 20 15 17 11 19 14 12 13 21 24 25 27 28 22 26 30 23 29 32 31 33 36 37 34 39 38 40 35 41 47 44 45 49 43 48 46

34. AREA BEING SUSTAINED

35. AREA NOT BEING SUSTAINED

36. What violations do you see?

37. When does 5S happen? ALL THE TIME!! 5S is a mindset and a culture. The 5S’s are a part of each Associate’s workday. There will also be CI Events. In an Event, Associates are taught how to implement the principles of Continuous Improvement.

38. How will 5S be implemented? By the associates! Who has a better idea to make our jobs easier than us? Our management is committed to improving how we work. We want to work smarter, not harder. Along the way, support will come from EVERYONE, including a CI Team of Associates. We will teach the 5S process, and together we will implement it and make it work.

39. Who is our 5S Team? • CI Team • Engineering • Safety and Environmental • Maintenance • Human Resources • Shop Floor & Upper Management • YOU!

40. Benefits to Us & Wabash National • JOB SECURITY! • We get involved in our company • Our jobs become pleasant and satisfying • Obstacles and frustration are removed • We know our expectations

41. Benefits to Us & Wabash National • Quality will improve • Safety will improve • Costs will be lower • Our reputation will increase • Profits will increase

42. “Our organization has made significant gains in Safety, Quality and Productivity. A key enabler to these gains has been improved Workplace Organization also known as 5S, WPO or simply Housekeeping. The improved organization means not tripping over parts, being able to find your tools, having clear aisles, installing the correct parts, etc. Workplace Organization is critical to our success.” -Jerry Linzey VP, Manufacturing and Continuous Improvement

43. Continuous Improvement Summary • It doesn’t take an expert to implement CI • It is not all about 5S, but 5S is usually a good place to start • Employee Involvement Is CRITICAL to the success of CI. • The employees will buy in quicker when they see the management team getting dirty too. • Take the lean leap! Try it! If you fail trying to improve, then you successfully gained knowledge for your next try. • Never stop Improving