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Parker Hannifin Hydraulic Filter Division Metamora, Ohio AME Presentation 11-18-2010 Presented By: Tom Albaugh

Parker Hannifin Hydraulic Filter Division Metamora, Ohio AME Presentation 11-18-2010 Presented By: Tom Albaugh. Hydraulic Filter Division. Metamora, Ohio Division of Parker • Hannifin’s Filtration Group Since early 1970’s 107,500 sq. ft. ISO 9001 Certified.

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Parker Hannifin Hydraulic Filter Division Metamora, Ohio AME Presentation 11-18-2010 Presented By: Tom Albaugh

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  1. Parker Hannifin Hydraulic Filter Division Metamora, Ohio AME Presentation 11-18-2010 Presented By: Tom Albaugh

  2. Hydraulic Filter Division • Metamora, Ohio • Division of Parker • Hannifin’s Filtration Group • Since early 1970’s • 107,500 sq. ft. • ISO 9001 Certified

  3. Pressure Filters 3000-6000 psi Medium Pressure 1000-3000 psi Low Pressure 100-500 psi Product Range 15/30P 50P 18/28/38P IL8 Series CN Series KLS/KLT Moduflow Spin-ons

  4. HFD Main Asset – The employees Monthly Plant Meetings Division Staff

  5. Focus of Presentation • Two Best Practices (Things the Parker Hydraulic Filter Division has done well) • Two Lessons Learned / Opportunities • The Value of applying for the AME Award

  6. A. Two Things We Now Do Well • Converted a no-flow, no-visual management, massive warehouse, all 7 forms of waste facility into a Lean continuous improvement facility with a Supermarket in an open visual plant with uninterrupted flow. • Instilled a Lean culture of ☺ employee empowerment.

  7. HFD Lean Journey History • Started with Parker Filtration Group Lean kickoff February 2002 in Ypsilanti Michigan • Had to overcome the ‘We’re Different’ (high-mix) mind set • 1+ Kaizen events per month for first 3 years • 50+ events • Gradually changed culture • Work with Lean Sensei’s in beginning • Three Major Site Plan Phases (now phase 4) • Continuous Improvement

  8. Vast Massive Storage Hid Problems Warehouse Before:

  9. Before: Central Wall & Mezzanine Impeded Flow & Hid Material

  10. Assembly Before:

  11. Mezzanine & Central Wall Coming Down:

  12. Supermarket Instead of Warehouse

  13. Receiving After

  14. THE AFTER:

  15. Massive random storage W/H Central mezzanine/wall blocked flow Inventory Turns < 3 150 tall racks Lost parts regularly 1200 ft travel & handle 20 times 12 recorded accidents All 7 forms of Waste No Supplier Kanbans Annual Inventory took 3+ days No 5S’s Supermarket, PFEP, Supplier Kanbans, Water-spider Inventory Turns 11 Open visual management Travel & Handling reduced 85% Eliminated 150 tall racks Freed up 5000 sq ft Safety recorded accidents reduced 83% Surplus two fork lifts Annual Inventory now 1 day 5S Everywhere PFEP & Making Material Flow @ HFD AFTER BEFORE

  16. Instilling Employee Empowerment • Training • Teams • Kaizen • VS • 5S • HPWT • 10X10 • All Hands On Deck • Commitment • Communication • Celebrations

  17. A Few HFD Initiatives • 5S Golden Broom & Golden Duster • 10 X 10 teams • Lean Training • All Employees trained on Basic Problem Solving • Lean Boot Camps rolled out • Lean Work Shop • Monthly Plant Meetings • Quarterly News Letter • Forklift Free Production Areas • Safety Cook Outs • Safety Suggestion Program • On Site Physicians Assistant

  18. Parker’s Lean Tracking SystemThe Boards Tell HFD’s Story

  19. A Few of the Results • Lost Time Accidents at 0 • 72% Reduction in Scrap • WIP Reduction of 75% • Inventory Returns Improved by 270% • Productivity Improved by 115%

  20. Celebrate

  21. Lean Celebration

  22. Lessons Learned • Lean must be treated as a complete continuous improvement process and not just pick and choose a few Lean tools. • The Lean journey must lead to true culture change with employee empowerment if you want it to stick. • Lean can work for high mix operations too—it takes that extra effort. • Positive peer pressure can be an effective tool. Opportunities • Inventory Turns can improve more to high double digits • Careful not to become complacent

  23. Value of Applying for AME Award • Benchmark to peers • Challenge: Writing a summary of your Lean Journey gives you a great perspective as to how far your company has come and what is still left to be done. • Very professional volunteer examiners will give you honest feedback, including suggested opportunities for improvements. • A good indicator of Lean progress • No Fees • Good Company / Division PR

  24. THANK YOU QUESTIONS ???

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