© 2013 DST Systems, Inc. All rights reserved. The California Adventure.

© 2013 DST Systems, Inc. All rights reserved.© 2013 DST Systems, Inc. All rights reserved.

The California Adventure

© 2013 DST Systems, Inc. All rights reserved.2

Before Lean Pilot Program Some of our improvements What we have gained

Agenda


No single point of scheduling Material was precision picked by work unit and delivered to

machines, operators would frequently run out of materials Postal supplies were staged at several areas around the plant

and operators would perform a necessary non value added task by leaving their machine to get their own postal supplies

There was not a effective method for delivering Printed work to the inserters

Packaging Large statements was three step process and not continuous flow

Consumables on the floor were not readily available to the operator in fact some had to be ordered at time of need

Before Lean


Put together a core team of material and operations experts Core team attended Lean Courses Used one of our largest customers with daily cutoffs Did a “Paper Kaizen” to map out the current and future state Built a Plan for Every Part Trained management and operators on the new process Observed and reinforced the process 24/7 for 30 days Made some mid course corrections (Old Habits were hard to break) Results - Operator efficiency went up - Material shortages virtually eliminated Results confirmed lean was the way to go

Pilot Program


Production Control


Material at the operators finger tips

Easy material delivery


Kanbans Throughout the factory Parts Supermarket


Large statements packaged by continuous flow

Material at operators fingers tips


Postal Supplies Delivered to Machine Supplies for Job delivered to machine


High speed MPS machines went from 40+% efficiency to 55+% Materials management handled a increase of 35% in volume, took on additional

tasks and still reduced staff by almost 45% Special Handling PPLH went up 30% Operator frustration due to running out of materials eliminated. The pull delivery system allowed us to remove several non-value added steps

from the process and reassign some other activities to keep the operators at their machines.

The pull delivery system also eliminated virtually all downtime previously associated with the inadequate supply of materials at the machines, while dramatically reducing the amount of work-in-process inventory on the floor.

52 percent gain in packages per hour, 62 percent increase in statements per hour, and a 71 percent increase in machine run time.

What was gained in California

© 2013 DST Systems, Inc. All rights reserved. The California Adventure.

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