Achieving Supply Chain Excellence
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Transcript of Achieving Supply Chain Excellence
1
Achieving Supply Chain ExcellenceDave Wheeler
Vice President, Global Production & Logistics
2
Sr. Management
Attention Span
Corporate
Culture
Cost
Reduction
The Challenge in 2001
3
Six Chapters of the Novel
1. Company overview
2. Our First Steps
3. Fueling the Fire
4. Leveraging Results
5. Hitting the Bottom Line
6. What’s on the Horizon
4
> 800,000B U S I N E S S C U S T O M E R S
>5,000,000U N I F O R M W E A R E R S D A I L Y
42 Manufacturing Plants3000+ Suppliers World Wide5 Regional Distribution CentersCatalog Distribution Center
National Account Distribution Center273 Laundry Plants
Cintas Corporation
5
First Aid & SafetyRental Uniform
Catalog
Fire Protection
Cintas Products/Services
Document Management
6
Industrial Uniform–the bread & butter
7
The Trucks
8Wearers
Routes
Service & Sales Rep
Orders
Customers
Plants
Cintas Services Workflow
Regional, Catalog & National
Accounts Distribution
Centers273 Laundry Plants
Global Mfg Plants &
Suppliers
9
Catalog / Direct Sale
10
Catalog / Direct Sale
11
Catalog / Direct Sale
12
Catalog / Direct Sale
13
Catalog / Direct Sale
14
Catalog / Direct Sale
15
FY 2007 Financial Results
0500
10001500200025003000350040004500
1999
2000
2001
2002
2003
2004
2005
2006
2007
Net Incom e
Revenue
Diversification Strategy‘96 Floor Mats‘97 First Aid and Safety’98 Uniforms to You’02 Restroom Supply’03 Document Mgmt’03 Fire Prevention
Profits 28.5% (cagr)
1969 2007
16
Our First Steps
1. Company overview
2. Our First Steps
3. Fueling the Fire
4. Leveraging Results
5. Hitting the Bottom Line
6. What’s on the Horizon
17
Cintas Six Sigma – First Steps
Pilot started October 2001
• Piloted three Divisions: - National Account Sales Division - Distribution/Production Planning- Manufacturing & Logistics
• 18 Black Belts
18
KPI FY ‘02 FY ‘04
15%
($0.5MM)
$1.79
Service Level 96.9% 98.9%
Inventory $186MM $142MM
Inventory $ / Units Shipped 47 37
190K
Employee Turnover 38%
Net Income ($7MM)
Cost / Unit $2.11
Units Shipped / Day
150K
Cintas Six Sigma – First Steps
19
Traditional Lean
• Quick hits / Kaizen
• Visual, intuitive tools- Process map- Value stream map- Spaghetti map- Fishbone diagram- Pareto- Control charts
Traditional Six Sigma
• Deep dive / discovercritical X
- Simulation
- Statistical analysis (ANOVA, T-test)
- Design of Experiments
Combined Lean & Six Sigma
20
DEFINEIdentify Problem
•Develop PAF•Obtain Approvals
MEASUREData CollectionPlan
•Collect Data•Data Integrity Audits
ANALYZEIdentify Sourceof Variation
•Current Capability
IMPROVESolution •Pilot•Implementation Plan
•Payback Analysis
•Obtain Approvals for Implementation
IMPLEMENTInstallTechnologyTrainingTransfer
CONTROLControl Plan•Sustain
Diverge
Questions
Converge
Answers
Diverge / Converge DMAI C2
21
Project Selection Process
Prioritized Projects
11132
Issues/
Project Ideas
Voice of the Customer
Voice of the Business Voice of the
Process
Voice of the Partner
Project Prioritization
Matrix
22
• DECISION: Deploy Six Sigma across allOperating Divisions - June ’04
Uniform & Facility Services DivisionFirst Aid & Safety DivisionDocument Management DivisionFire Services Division
Cintas Six Sigma – First Steps
23
ISSUES:
1. No common language Company-wide
2. Sustainability questioned• Solutions • Support Structure• Black Belt follow-up
Cintas Six Sigma – First Steps
24
Fueling the Fire
1. Company overview
2. Our First Steps
3. Fueling the Fire
4. Leveraging Results
5. Hitting the Bottom Line
6. What’s on the Horizon
25
Control Plans – the critical piece
Full Automation
Awareness
Fail-Proof
Simplification
Training
• No Manual Intervention
• Notification, “big stick”
• Certification and Audits
• Eliminate Activity
• Impossible to Fail
Behavior typically reverts back to defects
If behavior cannot be changed, change the process that the behavior follows
Most Desired
Least Desired
Daily Mgt Systems/PVD • Defect feedback/visibility
26
Work Group Meetings
Asuntos del Área:•Mejoramiento de Eficiencia•Reducción de Desperdicio•Mejoramientos Kaizen•Limpieza y Organización
Asistencia
JoséChuchoLucíaNachoLupe
Agosto
1 2 3 4 5 6 7 8 9 10 11 12 13 ....
CalidadProductividad
KaizenEntrenamiento Cruzado
JoséChuchoLucíaNachoLupe
Habilidades Flex %
OperacionalMecánico
Tiempo Perdido
Hojas de Acción
Por Hacer
Servicio
Seguridad
012345
1 2 3 4 5 6 7
Antes: Después:
Resultados y Ejemplos de Auditoría de Limpieza
1. 4
2 5
3. 3
50
70
90
110
1 2 3 4 5 6 750
70
90
110
1 2 3 4 5 6 750
70
90
110
1 2 3 4 5 6 70
20406080
100
1 2 3 4 5 6 70
20406080
100
1 2 3 4 5 6 7
Actualizado8/12/99
Asuntos del Área:•Mejoramiento de Eficiencia•Reducción de Desperdicio•Mejoramientos Kaizen•Limpieza y Organización
Asistencia
JoséChuchoLucíaNachoLupe
Agosto
1 2 3 4 5 6 7 8 9 10 11 12 13 ....
CalidadProductividad
KaizenEntrenamiento Cruzado
JoséChuchoLucíaNachoLupe
Habilidades Flex %
OperacionalMecánico
Tiempo Perdido
Hojas de Acción
Por Hacer
Servicio
Seguridad
012345
1 2 3 4 5 6 7
Antes: Después:
Resultados y Ejemplos de Auditoría de Limpieza
1. 4
2 5
3. 3
50
70
90
110
1 2 3 4 5 6 750
70
90
110
1 2 3 4 5 6 750
70
90
110
1 2 3 4 5 6 70
20406080
100
1 2 3 4 5 6 70
20406080
100
1 2 3 4 5 6 7
Asuntos del Área:•Mejoramiento de Eficiencia•Reducción de Desperdicio•Mejoramientos Kaizen•Limpieza y Organización
Asistencia
JoséChuchoLucíaNachoLupe
Agosto
1 2 3 4 5 6 7 8 9 10 11 12 13 ....
CalidadProductividad
KaizenEntrenamiento Cruzado
JoséChuchoLucíaNachoLupe
Habilidades Flex %
OperacionalMecánico
Tiempo Perdido
Hojas de Acción
Por Hacer
Servicio
Seguridad
012345
1 2 3 4 5 6 7
Antes: Después:
Resultados y Ejemplos de Auditoría de Limpieza
1. 4
2 5
3. 3
50
70
90
110
1 2 3 4 5 6 750
70
90
110
1 2 3 4 5 6 750
70
90
110
1 2 3 4 5 6 70
20406080
100
1 2 3 4 5 6 70
20406080
100
1 2 3 4 5 6 7
Actualizado8/12/99
Primary Visual Display
CDMSElements
Cintas Daily Management System
27
Primary Visual Display Board
Area Top Issues:•Efficiency Improvement•Scrap Reduction•Kaizen Improvements•Cleaning and Organizing Visual Attendance
LarryChuckKathyJoeJim
1 2 3 4 5 6 7 8 9 10 11 12 13 ....
QualityProductivity
KaizenSkills Flexibility
LarryChuckKathyJoeJim
Skills Flex %
OperationalMechanicalLost Time
Action Sheets
To Do’s
Service
Safety
012345
1 2 3 4 5 6 7
Before: After:
Housekeeping Audit Results and Examples
1. 4
2 5
3. 3
50
70
90
110
1 2 3 4 5 6 750
70
90
110
1 2 3 4 5 6 750
70
90
110
1 2 3 4 5 6 70
20406080
100
1 2 3 4 5 6 70
20406080
100
1 2 3 4 5 6 7
Cintas Daily Management System
28
29
Cintas Daily Management System
30
Work Group Meetings
Asuntos del Área:•Mejoramiento de Eficiencia•Reducción de Desperdicio•Mejoramientos Kaizen•Limpieza y Organización
Asistencia
JoséChuchoLucíaNachoLupe
Agosto
1 2 3 4 5 6 7 8 9 10 11 12 13 ....
CalidadProductividad
KaizenEntrenamiento Cruzado
JoséChuchoLucíaNachoLupe
Habilidades Flex %
OperacionalMecánico
Tiempo Perdido
Hojas de Acción
Por Hacer
Servicio
Seguridad
012345
1 2 3 4 5 6 7
Antes: Después:
Resultados y Ejemplos de Auditoría de Limpieza
1. 4
2 5
3. 3
50
70
90
110
1 2 3 4 5 6 750
70
90
110
1 2 3 4 5 6 750
70
90
110
1 2 3 4 5 6 70
20406080
100
1 2 3 4 5 6 70
20406080
100
1 2 3 4 5 6 7
Actualizado8/12/99
Asuntos del Área:•Mejoramiento de Eficiencia•Reducción de Desperdicio•Mejoramientos Kaizen•Limpieza y Organización
Asistencia
JoséChuchoLucíaNachoLupe
Agosto
1 2 3 4 5 6 7 8 9 10 11 12 13 ....
CalidadProductividad
KaizenEntrenamiento Cruzado
JoséChuchoLucíaNachoLupe
Habilidades Flex %
OperacionalMecánico
Tiempo Perdido
Hojas de Acción
Por Hacer
Servicio
Seguridad
012345
1 2 3 4 5 6 7
Antes: Después:
Resultados y Ejemplos de Auditoría de Limpieza
1. 4
2 5
3. 3
50
70
90
110
1 2 3 4 5 6 750
70
90
110
1 2 3 4 5 6 750
70
90
110
1 2 3 4 5 6 70
20406080
100
1 2 3 4 5 6 70
20406080
100
1 2 3 4 5 6 7
Asuntos del Área:•Mejoramiento de Eficiencia•Reducción de Desperdicio•Mejoramientos Kaizen•Limpieza y Organización
Asistencia
JoséChuchoLucíaNachoLupe
Agosto
1 2 3 4 5 6 7 8 9 10 11 12 13 ....
CalidadProductividad
KaizenEntrenamiento Cruzado
JoséChuchoLucíaNachoLupe
Habilidades Flex %
OperacionalMecánico
Tiempo Perdido
Hojas de Acción
Por Hacer
Servicio
Seguridad
012345
1 2 3 4 5 6 7
Antes: Después:
Resultados y Ejemplos de Auditoría de Limpieza
1. 4
2 5
3. 3
50
70
90
110
1 2 3 4 5 6 750
70
90
110
1 2 3 4 5 6 750
70
90
110
1 2 3 4 5 6 70
20406080
100
1 2 3 4 5 6 70
20406080
100
1 2 3 4 5 6 7
Actualizado8/12/99
Primary Visual Display
Core Process Review
FAS Locations Customer
FAS Wholesale
Key Performance Indicators
CDMSElements
Cintas Daily Management System
31
Kaizen Action Sheet
Cintas Daily Management System
32
Work Group Meetings
Asuntos del Área:•Mejoramiento de Eficiencia•Reducción de Desperdicio•Mejoramientos Kaizen•Limpieza y Organización
Asistencia
JoséChuchoLucíaNachoLupe
Agosto
1 2 3 4 5 6 7 8 9 10 11 12 13 ....
CalidadProductividad
KaizenEntrenamiento Cruzado
JoséChuchoLucíaNachoLupe
Habilidades Flex %
OperacionalMecánico
Tiempo Perdido
Hojas de Acción
Por Hacer
Servicio
Seguridad
012345
1 2 3 4 5 6 7
Antes: Después:
Resultados y Ejemplos de Auditoría de Limpieza
1. 4
2 5
3. 3
50
70
90
110
1 2 3 4 5 6 750
70
90
110
1 2 3 4 5 6 750
70
90
110
1 2 3 4 5 6 70
20406080
100
1 2 3 4 5 6 70
20406080
100
1 2 3 4 5 6 7
Actualizado8/12/99
Asuntos del Área:•Mejoramiento de Eficiencia•Reducción de Desperdicio•Mejoramientos Kaizen•Limpieza y Organización
Asistencia
JoséChuchoLucíaNachoLupe
Agosto
1 2 3 4 5 6 7 8 9 10 11 12 13 ....
CalidadProductividad
KaizenEntrenamiento Cruzado
JoséChuchoLucíaNachoLupe
Habilidades Flex %
OperacionalMecánico
Tiempo Perdido
Hojas de Acción
Por Hacer
Servicio
Seguridad
012345
1 2 3 4 5 6 7
Antes: Después:
Resultados y Ejemplos de Auditoría de Limpieza
1. 4
2 5
3. 3
50
70
90
110
1 2 3 4 5 6 750
70
90
110
1 2 3 4 5 6 750
70
90
110
1 2 3 4 5 6 70
20406080
100
1 2 3 4 5 6 70
20406080
100
1 2 3 4 5 6 7
Asuntos del Área:•Mejoramiento de Eficiencia•Reducción de Desperdicio•Mejoramientos Kaizen•Limpieza y Organización
Asistencia
JoséChuchoLucíaNachoLupe
Agosto
1 2 3 4 5 6 7 8 9 10 11 12 13 ....
CalidadProductividad
KaizenEntrenamiento Cruzado
JoséChuchoLucíaNachoLupe
Habilidades Flex %
OperacionalMecánico
Tiempo Perdido
Hojas de Acción
Por Hacer
Servicio
Seguridad
012345
1 2 3 4 5 6 7
Antes: Después:
Resultados y Ejemplos de Auditoría de Limpieza
1. 4
2 5
3. 3
50
70
90
110
1 2 3 4 5 6 750
70
90
110
1 2 3 4 5 6 750
70
90
110
1 2 3 4 5 6 70
20406080
100
1 2 3 4 5 6 70
20406080
100
1 2 3 4 5 6 7
Actualizado8/12/99
Primary Visual Display
20 Keys
Core Process Review
FAS Locations Customer
FAS Wholesale
Key Performance Indicators
CDMSElements
Cintas Daily Management System
33
1. Cleaning 2 Organizing3. Team Activities4 Metrics5. Process Controls6. Continuous Process
Improvement7 Roles And
Responsibilities8. Work Leveling9. Work Standards10. Visual Systems11. Time Control &
Commitment12. Pre-Shift Meetings13 Eliminating Waste14. Empowering Workers15. Skill Versatility 16. Production Scheduling 17. Equipment
Maintenance18. Quality Assurance 19. Management of
Objectives20. Quick Changeovers
Level Level Characteristics/Conditions
5 Seamless, Transparent Automatic Excellence
4 World-class, Outstanding, Not Quite Always Automatic
3 System Installed, Frequent Glitches, Sometimes Serious
2 Awareness Established, First Small Steps Taken
1 The Usual Mess, Reactive, Few or Bad Systems, Many Problems, Most Accepted as, “Oh Well…”
Cintas Daily Management System
34
Cintas Daily Management System
35
Work Group Meetings
Asuntos del Área:•Mejoramiento de Eficiencia•Reducción de Desperdicio•Mejoramientos Kaizen•Limpieza y Organización
Asistencia
JoséChuchoLucíaNachoLupe
Agosto
1 2 3 4 5 6 7 8 9 10 11 12 13 ....
CalidadProductividad
KaizenEntrenamiento Cruzado
JoséChuchoLucíaNachoLupe
Habilidades Flex %
OperacionalMecánico
Tiempo Perdido
Hojas de Acción
Por Hacer
Servicio
Seguridad
012345
1 2 3 4 5 6 7
Antes: Después:
Resultados y Ejemplos de Auditoría de Limpieza
1. 4
2 5
3. 3
50
70
90
110
1 2 3 4 5 6 750
70
90
110
1 2 3 4 5 6 750
70
90
110
1 2 3 4 5 6 70
20406080
100
1 2 3 4 5 6 70
20406080
100
1 2 3 4 5 6 7
Actualizado8/12/99
Asuntos del Área:•Mejoramiento de Eficiencia•Reducción de Desperdicio•Mejoramientos Kaizen•Limpieza y Organización
Asistencia
JoséChuchoLucíaNachoLupe
Agosto
1 2 3 4 5 6 7 8 9 10 11 12 13 ....
CalidadProductividad
KaizenEntrenamiento Cruzado
JoséChuchoLucíaNachoLupe
Habilidades Flex %
OperacionalMecánico
Tiempo Perdido
Hojas de Acción
Por Hacer
Servicio
Seguridad
012345
1 2 3 4 5 6 7
Antes: Después:
Resultados y Ejemplos de Auditoría de Limpieza
1. 4
2 5
3. 3
50
70
90
110
1 2 3 4 5 6 750
70
90
110
1 2 3 4 5 6 750
70
90
110
1 2 3 4 5 6 70
20406080
100
1 2 3 4 5 6 70
20406080
100
1 2 3 4 5 6 7
Asuntos del Área:•Mejoramiento de Eficiencia•Reducción de Desperdicio•Mejoramientos Kaizen•Limpieza y Organización
Asistencia
JoséChuchoLucíaNachoLupe
Agosto
1 2 3 4 5 6 7 8 9 10 11 12 13 ....
CalidadProductividad
KaizenEntrenamiento Cruzado
JoséChuchoLucíaNachoLupe
Habilidades Flex %
OperacionalMecánico
Tiempo Perdido
Hojas de Acción
Por Hacer
Servicio
Seguridad
012345
1 2 3 4 5 6 7
Antes: Después:
Resultados y Ejemplos de Auditoría de Limpieza
1. 4
2 5
3. 3
50
70
90
110
1 2 3 4 5 6 750
70
90
110
1 2 3 4 5 6 750
70
90
110
1 2 3 4 5 6 70
20406080
100
1 2 3 4 5 6 70
20406080
100
1 2 3 4 5 6 7
Actualizado8/12/99
Primary Visual Display
Short Interval Coaching
20 KeysCore Process Review
FAS Locations Customer
FAS Wholesale
Key Performance Indicators
CDMSElements
Management By Walking Around
Cintas Daily Management System
36
Roles & Responsibilities
Green Belts
Master Black Belts
Co-Champions
Champions
ExecutiveChampion
Frontline Employees
Black Belts
• Owns the vision, direction, integration, results
• Supports Six Sigma byparticipating on project teams & leading CDMS
• Train & coach BBs, GBs & give guidance
to Co-Champion & Champions
• Align with business strategies
• Execute vision set by Champions• Identify human resources• Identify & Scope projects
• Set Divisional vision
• Identify & scope projects
• Identify, coach & develop BBs & MBBs
• Provides day-to-day management & direction of Six Sigma program
• Leads change for Cintas
• Apply Six Sigma toolsto specific projects, lead
& direct teamto execute
projects
CEO - S. FarmerCorp ESC
•Ideas, quick hits
Local ESC leaders
• Identify projects• Ensure implementation
Process Owner
37
WOR
Turnover
Absenteeism
ProblemSolving
Sales
P&L
Environmental
Workmen’sComp
Typical Weekly MeetingESC Meeting
ChangeManagement
Problem Solving
Staffing &
Training
Site Level& CDMSEngaged
Executive Steering Committees
38
Purpose:
1. Point
2. Charter
3. Facilitate
Executive Steering Committees
39
Business Unit / Staff Department ESC
Site Level ESC
Intact Work Teams ESC
Corporate ESCExecutive Staff and their Champions
Divisional VP and Direct Reports
Site Level Leader and a combination of Direct Reports and Front-Line employees
Quarterly
Monthly
Weekly
Executive Steering Committees
40
Executive SteeringCommittee Agenda
Training & Resources
ChangeManagement
Policies & Procedures -Cintas Daily
Management System
Executive Steering Committees
41
I. Change management1. GSCM Six Sigma Overview/Results – Year end FY072. GSCM Green Belt Projects by Group3. Green Belt Project Reviews
i. Sourcing projectii. Distribution projectiii. Quality Assurance project
4. GSCM Value Improvement Savings5. Black Belt Workload6. FY’08 BB Support Assignments7. FY’08 GB Goals8. GSCM KPI Scorecard Review9. IT Support
i. EDI progress reportii. Workload backlog and progress (SIRs)iii. Key initiatives update (dashboard review)iv. Visibility action plan
II. Training and Resources1. Black Belt Training Update2. Project Review Schedule3. GSCM Green Belt Classes
III. Policies and Procedures1. 20 Keys Update2. ESC/CDMS Functionality Status/Scorecard
Executive Steering Committees
42
Executive Steering Committee
Business Unit / Staff Department ESCResponsible for:1. Change Management
a. Black Belt Projects-Very cross functional-Benefits have high $ impact
b. Measurement of results
2. Staffing & Training3. Site-Level ESC active &
engaged
PointCharterFacilitate
43
Executive Steering Committee
Site Level ESC
Responsible for:1. Change Management
a. Green Belt Projects- Less cross functional- Benefits: reduced waste
b. Measurement of results2. Staffing & Training3. CDMS is active & engaged
PointCharterFacilitate
44
Executive Steering Committee
Intact Work Teams
Responsible for CDMS elements:1. Daily Work Group Meeting2. Primary Visual Displays3. Key Performance Indicators4. Core Process Reviews 5. Kaizen Action Sheets6. 20 Keys7. Short Interval Coaching8. Management By Walking Around
ExecuteInput Participate
GLOBAL SUPPLY CHAIN SIX SIGMA DEPLOYMENT/FUNCTIONALITY SCORECARD
29.5 30.028.9
30.0 30.0 30.0
28.229.8
26.928.0
30.0
26.026.1
28.8
24.0
28.027.0
20.0
0.0
5.0
10.0
15.0
20.0
25.0
30.0
Global SupplyChain Overall
ManufacturingOverall
Distribution/PPOverall
Global Logistics& VI2
Sourcing GSC HumanResources
ESC
DEP
LOYM
ENT
POIN
TS
3rd Qtr 2007 2nd Qtr 2007 1st Qtr 20074th Qtr 2006 FY'07 Goal FY'07 Goal (Revised)
Quarterly Results
Executive Steering Committees
46
1. Traditional Six Sigma DMAIC/DMADV
2. Traditional Lean, quick hits & tools
3. Cintas Daily Management System (CDMS)
4. Executive Steering Committees (ESC)
Cintas Six Sigma Elements
The Combination
47
Cintas Six Sigma Today
• In all Divisions
• 7 Master Black Belts
• 156 Black Belts
• 2,381 Green Belts
• 26 Senior Green Belts
Global Supply Chain
Marketing
Sales
Operations
Accounting/Finance
Human Resources
Information Technology
48
Six Sigma Financials Thru FY ‘07FY’01 THRU FY ‘07
DIVISION ANNUALIZEDBOOK IMPACT
ONE TIMEIMPACT
Document Mgmt 1,413,885 10,500Finance/Accounting 3,236,802 0First Aid & Safety 8,463,493 977,974Global Supply Chain 19,489,399 18,282,039Human Resources 3,513,624 0Information Tech 3,790,652 2,067,146Marketing 260,000 337,000National Accts Sales 11,339,801 7,308,184Rental 92,813,761 284,000TOTALS $144,321,417 $29,266,843
One Time Impact
$5MM – $10 MM
Annualized Impact
$45 MM - $65 MM
FY ’08 POTENTIAL
49
Leveraging Results
1. Company overview
2. Our First Steps
3. Fueling the Fire
4. Leveraging Results
5. Hitting the Bottom Line
6. What’s on the Horizon
50
Group Black Belt Network
Cincinnati
NE/ECNWNO
WE
SESW
GL
SC
MS
MW
MA
CP
CP
CE
Implementation Process
Issuing Black Belt
Rental Co-Champion
Champion
Group Black Belts
Black Belt identifies need
for team members, data
or implementation
of solutions
Black Belt completes Six Sigma Task
Form
Black Belt e-mails Task Form to at least three other
Rental Black Belts for review peer review and
feedback (sanity and clarity check)
Pass Peer
Review?
No
Revise Task Form
Review detail description in Task Form, considering impact and workload
Approve for Distribution to Group BBs?
No
Yes
Enter task on Tracking
Worksheets (one per Group)
Conduct weekly review of tasks with GVPs and MBB/Co
-Champion
Provide team member nominations, data and/or implementation status to
issuing Black Belt
MBB / Co-Champion
broadcasts e-mail to
requested GBBs
Memo from Rental Champion to Field (implementation
tasks)
Six Sigma Project Task
TYPES1. Implementations2. Data collection requests3. Team member request
REQUIREMENTS1. Peer review2. Financial benefits3. Details / step by step4. Forms & collection
spreadsheets attached
Detailed Instructions
- Details / step by step - Details / forms, data
Group Black Belt Task Tracking
Group Black Belt maintains, tracks, reportsGROUP BLACK BELT: Jerry Chucko
ESC: Southeast GroupUpdated 4/27/2005
17 69 71 73 74 149 201 219 220 237 258 280 283 294 438 475Task # TYPE Six Sigma Project Task Requested S. Florida St. Pete Kennesaw Orlando Tampa Daytona Decatur Augusta Vidalia Savannah L'ville J'ville W. Palm Ft. Myers Albany Calhoun Notes
(IMPROVE, DATA, TEAM) Complete date SE SE SE SE SE SE SE SE SE SE SE SE SE SE SE SE
3 DATA API Codes, error frequency & types 1/21/2005N/A 01/21/05 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Complete
4 DATA One Week Turns 2/18/2005 N/A 02/18/05 N/A N/A 2/18/2005 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Complete
7 Improve Washer Parts 2/4/2005 02/04/05 01/31/05 02/04/05 02/04/05 02/04/05 02/04/05 02/04/05 02/04/05 02/04/05 02/04/05 02/04/05 02/04/05 02/04/05 02/04/05 02/04/05 02/04/05 Complete
8 Improve Locker Invoice Audits 3/4/2005 03/04/05 02/25/05 03/04/05 03/04/05 03/04/05 03/04/05 03/04/05 03/04/05 03/04/05 03/04/05 03/04/05 03/04/05 02/09/05 03/04/05 03/04/05 02/25/05 Complete
9 Improve Locker Zero Query 3/4/2005 03/04/05 02/25/05 03/04/05 03/04/05 03/04/05 03/04/05 03/04/05 03/04/05 03/04/05 03/04/05 03/04/05 03/04/05 03/04/05 03/04/05 03/04/05 02/25/05 Complete
10 Improve Crossfire Training 2/1/2005 02/04/05 02/04/05 02/04/05 02/04/05 02/04/05 02/04/05 02/04/05 02/04/05 02/07/05 02/04/05 02/04/05 02/04/05 02/04/05 02/04/05 02/04/05 02/04/05 Complete
12 Improve Special Cut Revenue 2/7/2005 02/15/05 02/07/05 02/07/05 03/25/05 03/31/05 03/31/05 02/07/05 02/07/05 02/07/05 02/04/05 02/08/05 02/15/05 02/07/05 02/07/05 02/15/05 02/07/05 #149 rekeying data
13 Improve Terry Towel Ordering 1/31/2005 01/31/05 01/31/05 01/31/05 01/31/05 01/31/05 01/31/05 01/31/05 01/31/05 01/31/05 01/31/05 01/31/05 01/31/05 01/31/05 01/31/05 01/31/05 01/31/05 Complete
14 Improve Shared Locker Pool 3/4/2005 04/01/05 04/01/05 04/01/05 04/01/05 04/01/05 04/01/05 04/01/05 04/01/05 04/01/05 04/01/05 04/01/05 04/01/05 04/01/05 04/01/05 04/01/05 04/01/05 Complete
15 Improve Towel Standardization 1/31/2005 02/01/05 02/01/05 02/01/05 02/01/05 02/01/05 02/01/05 02/01/05 02/01/05 02/01/05 02/01/05 02/01/05 02/01/05 02/01/05 02/01/05 02/01/05 02/01/05 Complete
16 Improve Mat Standardization 3/11/2005 02/28/05 02/16/05 02/28/05 02/28/05 02/28/05 02/28/05 03/11/05 02/28/05 04/01/05 02/28/05 02/28/05 02/28/05 02/28/05 02/28/05 03/11/05 02/28/05
17 Measure Data Transfer 2/25/2005 02/22/05 02/22/05 02/22/05 02/22/05 02/22/05 02/22/05 02/22/05 02/22/05 02/22/05 02/22/05 02/22/05 02/22/05 02/22/05 02/22/05 02/22/05 02/22/05 Complete
18 DATA Washer Alley Parts 4/15/2005 N/A N/A N/A 04/15/05 04/15/05 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Complete
21 Improve Truck Loading Quick Hits 6/10/2005 06/10/05 06/10/05 06/10/05 06/10/05 06/10/05 NA 06/10/05 06/10/05 06/10/05 N/A 06/10/05 06/10/05 06/10/05 N/A 06/10/05 06/10/05 Commenced 5/23/05
R
N/A
NO
NOT APPLICABLE TO LOCATION
NOT REQUIRED FOR SAMPLE - NO PLAN DATE OF COMPLETION
COMPLETE
WITHIN 14 DAYS OF COMPLETION
>14 DAYS TO COMPLETION
NO PLAN TO COMPLETE (RESOURCE SHORTAGE)
Discipline produces results
Group Actual # Items in Inventory
Percent of 75% goal made thus far
Percent of 75% goal made thus far 3/30/05 Status
Percent of 75% goal made thus far 4/6/05 Status
Percent of 75% goal made thus far 4/13/05 Status
Percent of 75% goal made thus far 5/18/05 Status
Percent of 75% goal made thus far
Central 387149 30.7% 48.2% $13,289.80 47.7% $13,183.01 47.3% $13,821.95 49.6% $13,215.13 47.4%East Central 198142 51.1% 64.7% $9,571.84 67.1% $10,291.04 72.1% $11,538.47 80.9% $11,712.90 82.1%Western 134165 0.3% 102.7% $9,924.63 102.7% $9,924.63 102.7% $9,924.63 102.7% $9,924.63 102.7%Southwestern 309371 8.0% 34.9% $7,645.03 34.3% $7,580.97 34.0% $7,427.05 33.3% $6,995.80 31.4%Southeastern 264240 3.8% 59.2% $11,052.77 58.1% $10,852.15 57.0% $10,687.88 56.2% $10,069.72 52.9%South Central 311756 0.0% 31.1% $6,914.30 30.8% $6,863.83 30.6% $6,845.47 30.5% $7,111.15 31.7%Northwestern 169367 14.2% 57.5% $6,892.67 56.5% $6,822.79 56.0% $6,574.05 53.9% $6,300.63 51.7%Northern 46161 0.0% 39.4% $1,300.60 39.1% $1,756.90 52.9% $1,882.76 56.6% $1,748.41 52.6%Northeastern 176664 14.3% 48.5% $6,382.30 50.2% $6,490.48 51.0% $6,309.73 49.6% $5,943.13 46.7%North Central 298217 23.2% 54.2% $11,717.92 54.6% $11,736.88 54.7% $12,080.91 56.3% $11,845.16 55.2%Midwestern 408949 0.2% 19.1% $7,876.28 26.7% $8,031.20 27.3% $7,830.54 26.6% $7,238.03 24.6%Mid South 257231 4.1% 69.7% $13,180.73 71.2% $13,218.39 71.4% $13,022.14 70.3% $12,379.26 66.8%Mid Atlantic 255991 11.1% 55.3% $10,165.34 55.2% $10,946.32 59.4% $11,308.01 61.4% $11,453.91 62.1%Great Lakes 252432 33.0% 57.8% $10,358.23 57.0% $10,247.75 56.4% $10,088.31 55.5% $9,395.60 51.7%
14.3% 49.6% $126,272.44 50.5% $127,946.34 51.2% $129,341.89 51.8% $125,333.45 50.2%$6,566,166.67 $6,653,209.47 $6,725,778.12 $6,517,339.40
Additional Factors to consider:1. National accounts are included in above totals.2. Unknown what % of accounts have wording on contract $960,776.63 $1,088,722.96 $1,218,064.85 $1,855,601.493. Unkown if locations that already charged extra make up will be able to apply spec cut chg.
5. Amount could be more if size parameters were more strict (ie. include 3XL).6. Amount could be more if charge was more than $.10 per item in inventory.
Potential annual revenue increase dollars=
4. Amount will be more if size parameter matrix
e Improvement Opportunities for the Rental from Special Cut Charges
Ted Gemperle
Potential additional weekly rental dollars=
56
Hitting the Bottom Line
1. Company overview
2. Our First Steps
3. Fueling the Fire
4. Leveraging Results
5. Hitting the Bottom Line
6. What’s on the Horizon
57
Cintas Six Sigma Culture
DELIVERY/CYCLE
TIME
COST
QUALITY, REVENUES & CUSTOMER SATISFACTION
DRIVE DOWNDRIVE DOWN
PRODUCE WORLD CLASS QUALITYMAXIMIZE REVENUE
EXCEED CUSTOMER EXPECTATIONS
DRIVE UP
58
Crease Retention Project
59
Crease Retention Project
60
Design of Experiments (DOE)
StdOrder RunOrder Oven Time Oven Temp Press Pressure Press Temp Press Time 10 Washings 50 Washings1 1 11.0 290 60.0 250 21.02 2 16.0 290 60.0 250 14.03 3 11.0 350 60.0 250 14.04 4 16.0 350 60.0 250 21.05 5 11.0 290 95.0 250 14.06 6 16.0 290 95.0 250 21.07 7 11.0 350 95.0 250 21.08 8 16.0 350 95.0 250 14.09 9 11.0 290 60.0 300 14.010 10 16.0 290 60.0 300 21.011 11 11.0 350 60.0 300 21.012 12 16.0 350 60.0 300 14.013 13 11.0 290 95.0 300 21.014 14 16.0 290 95.0 300 14.015 15 11.0 350 95.0 300 14.016 16 16.0 350 95.0 300 21.017 17 11.0 290 60.0 250 21.018 18 16.0 290 60.0 250 14.019 19 11.0 350 60.0 250 14.020 20 16.0 350 60.0 250 21.021 21 11.0 290 95.0 250 14.022 22 16.0 290 95.0 250 21.023 23 11.0 350 95.0 250 21.024 24 16.0 350 95.0 250 14.025 25 11.0 290 60.0 300 14.026 26 16.0 290 60.0 300 21.027 27 11.0 350 60.0 300 21.028 28 16.0 350 60.0 300 14.029 29 11.0 290 95.0 300 21.030 30 16.0 290 95.0 300 14.031 31 11.0 350 95.0 300 14.032 32 16.0 350 95.0 300 21.033 33 13.5 320 77.5 275 17.534 34 13.5 320 77.5 275 17.535 35 13.5 320 77.5 275 17.536 36 13.5 320 77.5 275 17.5
61
Baton Rouge Linen Project
Problem/Goal Statement:
The Baton Rouge Linen Facility is operating at excessive material costs.
The goal of this project is to reduce linen material cost from a monthly average of 19% to a monthly average of 15% - while improving customer commitments from 60% to 100%
62
Baton Rouge Linen Project Tools
• Establish measurements
• 5 S
• Process Mapping
• Value Stream Mapping
• Work Flow Analysis
Sort Set in Order
Shine Standardize Sustain
63
Starting Clutter (1 of 14 areas)
64
Items to be discarded
65
Dashboard: Linen Material Cost Project
II. SERVICE LEVEL
0%10%20%30%40%50%60%70%80%90%
100%6/
1
6/4
6/9
6/14
6/17
6/22
6/25
6/30 7/
6
7/9
7/14
7/19
7/22
7/27
7/30 8/
4
AC
CU
RA
CY
SERVICE LEVEL PRIOR TO REWORK
SERVICE LEVEL FOLLOWING REWORK
66
Dashboard: Linen Material Cost Project
III. BACKLOG VALUE (SOIL)
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
PLANNED VALUEVALUE ESTIMATE
125 carts
100 carts
75 carts
50 carts
25 carts
BACKLOG: A CART OF SOILED LINEN THAT HAS BEEN AT THE PLANT FOR MORE THAN 16 HOURS.
67
Dashboard: Linen Material Cost Project
IV. LINEN INJECTIONS
$0$1,000$2,000$3,000$4,000$5,000$6,000$7,000$8,000$9,000
$10,000
6/1
6/4
6/9
6/14
6/17
6/22
6/25
6/30 7/6
7/9
7/14
7/19
7/22
7/27
7/30 8/4
FYE04AVG
BOTH $ PURCHASED
FOTH $ PURCHASED
FY04 AVG $7,700/day
6 week effort; $856,000/year benefit6 week effort; $856,000/year benefit
68
International Transit Time Project
The Issue:
• Haiti and Honduras to Ashland DC varies significantly (range: 12 – 26 days) and excessive; on average 17.5 days.
• Causes Production Planning to carry excess safety stock inventory at the main DC.
69
Process (1) Process (2) Process (3) Process (4) Process (5) Process (6) Process (7)
Ref # Plant Plant reported ship date
Container arrived at port
I/E receives paperwork from plant
I/E sends paperwork to
Broker
Entry filed by Broker
Entry cleared by Customs
Date received at DC
Age of shipment
Days to complete shipment Trailer/Container Carrier
R14478 PRISA 6/28/2006 7/2/2006 7/3/2006 7/5/2006 7/5/2006 7/10/2006 7/12/2006 14 SMLU 845093-0 SeaboardR14479 PRISA 6/28/2006 7/5/2006 7/3/2006 7/3/2006 7/13/2006 7/14/2006 7/20/2006 22 SMLU 7817094-4 SeaboardR14481 CDH 6/27/2006 7/5/2006 7/3/2006 7/3/2006 7/5/2006 7/10/2006 7/14/2006 17 CMCZ 811167 CrowleyR14482 IRA 7/2/2006 7/5/2006 7/3/2006 7/3/2006 7/6/2006 7/6/2006 7/10/2006 8 653380 LandstarR14485 EUR 7/1/2006 7/6/2006 7/3/2006 7/5/2006 7/6/2006 7/10/2006 7/13/2006 12 KKLZ 11314-8 SeaboardR14486 CDH 7/3/2006 7/8/2006 7/5/2006 7/6/2006 7/10/2006 7/10/2006 7/14/2006 11 CMCZ 833675 CrowleyR14487 IA 7/1/2006 7/5/2006 7/4/2006 7/6/2006 7/10/2006 7/10/2006 7/12/2006 11 SCSU 450295-1 AntilleanR14488 IA 7/1/2006 7/5/2006 7/4/2006 7/6/2006 7/10/2006 7/10/2006 7/12/2006 11 AMLU 459896-5 AntilleanR14489 Gluma 7/6/2006 7/7/2006 7/6/2006 7/6/2006 7/7/2006 7/8/2006 7/12/2006 6 638336 LandstarR14490 ENS 6/30/2006 7/7/2006 7/3/2006 7/6/2006 7/7/2006 7/7/2006 7/12/2006 12 633136 LandstarR14491 IRA 7/6/2006 7/8/2006 7/6/2006 7/7/2006 7/7/2006 7/12/2006 7/17/2006 11 638844 LandstarR14494 Prisa 7/4/2006 7/9/2006 7/7/2006 7/7/2006 7/10/2006 7/10/2006 7/14/2006 10 SCZU 145666-1 SeaboardR14495 ENS 7/8/2006 7/10/2006 7/10/2006 7/10/2006 7/10/2006 7/10/2006 7/14/2006 6 633666 LandstarR14497 IA 7/8/2006 7/12/2006 7/10/2006 7/10/2006 7/12/2006 7/14/2006 7/18/2006 10 UESU 483536-7 AntilleanR14498 IA 7/8/2006 7/12/2006 7/10/2006 7/10/2006 7/12/2006 7/14/2006 7/17/2006 9 AMLU 450183-0 AntilleanR14499 EUR 7/8/2006 7/12/2006 7/10/2006 7/10/2006 7/12/2006 7/14/2006 7/20/2006 12 SMLZ 81006-5 SeabordR14500 GLUMA 7/10/2006 7/12/2006 7/11/2006 7/12/2006 7/12/2006 7/12/2006 7/17/2006 7 686034 LandstarR14501 CDH 7/11/2006 7/15/2006 7/12/2006 7/12/2006 7/19/2006 7/19/2006 14 CMCZ 834654 CrowleyR14502 IRA 7/11/2006 7/13/2006 7/12/2006 7/12/2006 7/13/2006 7/13/2006 7/18/2006 7 653337 LandstarR14503 Prisa 7/7/2006 7/12/2006 7/13/2006 7/13/2006 7/17/2006 7/18/2006 7/21/2006 14 SMLU 845407-5 SeaboardR14504 Prisa 7/7/2006 7/12/2006 7/13/2006 7/13/2006 7/17/2006 7/17/2006 7/21/2006 14 SMLU 849768-9 SeaboardR14058 ENS 7/15/2006 7/17/2006 7/17/2006 7/17/2006 7/17/2006 7/17/2006 10 631563 LandstarR14509 Gluma 7/17/2006 7/17/2006 7/17/2006 7/17/2006 7/17/2006 7/19/2006 8 637578 LandstarR14510 Prisa 7/17/2006 7/17/2006 7/17/2006 7/17/2006 7/18/2006 7/18/2006 8 UXXU 480819-2 SeaboardR14511 IA 7/15/2006 7/19/2006 7/17/2006 7/18/2006 7/20/2006 7/20/2006 10 FSCU 658428-2 AntilleanR14512 IA 7/15/2006 7/19/2006 7/17/2006 7/18/2006 7/20/2006 7/20/2006 10 AMZU 837053-5 AntilleanR14513 IA 7/15/2006 7/19/2006 7/17/2006 7/18/2006 7/20/2006 7/20/2006 10 FSCU 613142-9 AntilleanR14514 IRA 7/17/2006 7/19/2006 7/18/2006 7/18/2006 7/19/2006 7/19/2006 8 638572 LandstarR14516 EUR 7/15/2006 7/20/2006 7/18/2006 7/18/2006 7/21/2006 7/21/2006 10 SMLZ 81020-4 SeaboardR14517 Prisa 7/15/2006 7/20/2006 7/19/2006 7/19/2006 7/21/2006 7/21/2006 10 SMLU 849557-8 SeaboardR14518 Prisa 7/15/2006 7/20/2006 7/19/2006 7/19/2006 7/21/2006 7/21/2006 10 SMLU 849010-7 SeaboardR14520 CDH 7/17/2006 7/20/2006 7/20/2006 8 CMCZ211919 Crowley
7 Day Average = 4.14 3.00 0.38 2.44 0.27 4.67 13.1730 Day Average = 3.91 2.66 0.62 2.33 1.04 4.59 11.7560 Day Average = 4.15 3.01 1.23 3.29 1.08 5.25 14.56
Average calendar days per process
International Transit Time Project
70
302418126
20
15
10
5
0
302418126
20
15
10
5
0302418126
Haiti&Hond April Haiti&Hond May Haiti&Hond June
Haiti&Hond July Haiti&Hond August Haiti&Hond Sept.
Haiti&Hond April
18.35StDev 4.380N 20
Haiti&Hond JuneMean 18.26StDev 6.481
Mean
N 42
Haiti&Hond JulyMean 12.97StDev 3.843N 31
Haiti&Hond August
17.2
Mean 13.47StDev 3.223N 32
Haiti&Hond Sept.Mean 11.94StDev
StDev
2.651N 34
2.658N 10
Haiti&Hond MayMean
Prisa, IA, CDH, Euromoda
International Transit Time Project
71
Digitized Logo Project
72
Digitized Logo Project
73
Digitized Logo Project
74
Digitized Logo Project
Wait at Digitizer,Editor or
Graphic Artist Desk
Wait in Queue within Folders - based onpriorities and backlog
Wait until end of shift Wait until all logoIDs are entered
Waiting for Digitizing Clerkto distribute for scanning Wait within Folders
Wait from time complete until picked up byCustomer Service Wait for distribution Awaiting Quality Review Awaiting Packaging Awaiting final shipping Awaiting final
shipping
Digitizing Department: BASELINE Value Timeline
Swatching (Status 40) to Swatches sent to Customer (Status 62)
Accumulation: First, Second and Third shiftswatches from previous day await cleanup
Awaiting final completion of cleanup(approx 8 to 11am) Awaiting final approval
Drawing not to scale
75
Digitized Logo Project
Digitizing Cycle Time Performance From Order Receipt to Mailing of Swatch to Customer
0
1
2
3
4
5
6
7
8
9
08/09
/0108
/22/01
09/05
/0109
/18/01
10/01
/0110
/12/01
10/25
/0111
/07/01
11/20
/0112
/04/01
12/17
/0101
/03/02
01/16
/021/2
9/200
22/1
1/200
22/2
5/200
23/8
/2002
3/21/2
002
4/3/20
024/1
2/200
24/2
1/200
24/3
0/200
25/9
/2002
5/18/2
002
5/27/2
002
6/5/20
026/1
4/200
26/2
3/200
27/2
/2002
7/11/2
002
7/20/2
002
7/29/2
002
8/7/20
028/1
6/200
28/2
5/200
2C
ycle
Tim
e (D
ays)
Goal: 1 day Turn-around
Phase 1 Improvements
Project Kickoff
Phase 2 Improvements
76
Vendor Collaboration
Improving Performance
77
GSC Project Example
Cintas Vendor
78
GSC Project Example
Cintas Planner Faxes PO to
Workrite Customer Service Manager
WR Customer Service Manager Confirms Receipt
via Return Fax
WR Customer Service Manager Allocates Order to
WR Planning
Oxnard Plant Cuts Order
Cut Pieces Shipped to One of
Four Mexico Plants for Sewing
Quality Garment Shipped to Cintas
DCs
Start
End
WR Planning Generates Cut Schedules for Oxnard Plant and Sew Schedules
for Mexico Plants**
WR Customer Service Manager
emails ASN to Cintas Sourcing
Administrator
Mexico Plant Sews Order and
Performs QC Checks
Finished Garment Shipped to Oxnard
Plant
QC Check by Oxnard Plant
** Assumes raw material on-hand and excludes cut specials sewn at Oxnard plant
Finished Garment Shipped to
Memphis Plant
Quality Garment Shipped to Cintas
DCs
End
WR Customer Service Manager
emails ASN to Cintas Sourcing
Administrator
QC Check by Memphis Plant
4 weeks1 week 1 week 1 week
1 weekNew Process
July 11th
1 week
8 weeks
7 weeks
79
GSC Project Examples
Addressed All Reasons
Co
un
t
Per
cen
t
Early/Late Ships
Count23.3 10.0 5.0 5.0 3.3
Cum % 53.3 76.7 86.7 91.7
32
96.7 100.0
14 6 3 3 2Percent 53.3
Other
Capa
c ity/Pla
nning
Issu
es
ASN Sen
t Lat
e
Capa
city I
ssues
/Inco
rrec t
LT
Cont
racto
r Per
form
ance
Issu
es
Ship
Prod
uct W
hen A
vailab
le
60
50
40
30
20
10
0
100
80
60
40
20
0
Pareto Chart of Early/Late Ships
80
GSC Project Example
8 weeks
8 weeks
8 weeks
8 weeks
8 weeks
8 weeks
14 weeks*
14 weeks*
8 weeks
8 weeks
GAINS LT (1-3-06)
8 weeks
8 weeks
8 weeks
8 weeks
8 weeks
8 weeks
8 weeks
8 weeks
8 weeks
8 weeks
GAINS LT (3-1-06)
12 weeks
12 weeks
12 weeks
12 weeks
10 weeks
10 weeks
14 weeks
14 weeks
12 weeks
12 weeks
GAINS LT (9-1-05)
16 weeks298ULT70NB60694-20
16 weeks298ULT70MB60694-80
16 weeks231IND70NB60680-20
16 weeks231IND70MB60680-80
12 weeks131ULT95NB82302-20
12 weeks131IND95NB82351-20
16 weeks110NMX60RB737-26
16 weeks110NMX60NB737-20
16 weeks431IND95NB70644-20
16 weeks431ULT95NB70640-20
GAINS LT (5-1-05)
WR Style #Cintas #
8 weeks
8 weeks
8 weeks
8 weeks
8 weeks
8 weeks
14 weeks*
14 weeks*
8 weeks
8 weeks
GAINS LT (1-3-06)
8 weeks
8 weeks
8 weeks
8 weeks
8 weeks
8 weeks
8 weeks
8 weeks
8 weeks
8 weeks
GAINS LT (3-1-06)
12 weeks
12 weeks
12 weeks
12 weeks
10 weeks
10 weeks
14 weeks
14 weeks
12 weeks
12 weeks
GAINS LT (9-1-05)
16 weeks298ULT70NB60694-20
16 weeks298ULT70MB60694-80
16 weeks231IND70NB60680-20
16 weeks231IND70MB60680-80
12 weeks131ULT95NB82302-20
12 weeks131IND95NB82351-20
16 weeks110NMX60RB737-26
16 weeks110NMX60NB737-20
16 weeks431IND95NB70644-20
16 weeks431ULT95NB70640-20
GAINS LT (5-1-05)
WR Style #Cintas #
* Fabric issues with supplier
50% Reduction in Lead Time Achieved
81
Lessons Learned…pitfalls
1. Waiting to get company-wide coverage
2. “Loose use” of Six Sigma resources – no structure
3. A focus on Cost Reduction versus Best Value
4. Not linking into personnel incentives
5. Staffing a project with too few or ineffective players
6. Thinking that Six Sigma training is a “Silver Bullet”
82
GSC Project Example
Shipping Performance Continues to Improve
Month
Prop
orti
on
Mar-06Jan-06Nov-05Sep-05Jul-05May-05Mar-05Jan-05
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0.0
_P=0.6686UCL=0.6760LCL=0.6613
1 21
1
1
1
1
1
1
1
1
1
1
1
11
1
P Chart of OnTime by Improvement Grp
Tests performed with unequal sample sizes
83
GSC Project Example
The Result:
Intangible BenefitsImproved Customer SatisfactionFaster Response Time
Tangible Benefits$1.6MM Change in Working Capital$128K Productivity Savings
84
GSC Project Example
The Issue:
• The process for approving a new supplier for re-sourcing rental products is taking anywhere between 7 months (for existing pattern/components) up to 11 months (for new pattern/components).
• This results in delayed productivity for Cintas.
85
GSC Project Example
Time
SourcingMerchandisingProduction PlanningQualityTextile Sourcing
Who
Start: Identify a VendorStop: PO Ready
When
Where
NASD/Direct SaleNew Product DevelopmentNon-Garments (i.e. Corporate Purchasing)
National Rental/Rental ProductGarmentsExisting Product“Re-sourcing”
What
ExcludesIncludes
Reduce Rental Product Approval Cycletime to 60 Days for Sample Delivery and 30-60 days for Testing and Approval (90-120 Days Total)
Project Scope
Time
SourcingMerchandisingProduction PlanningQualityTextile Sourcing
Who
Start: Identify a VendorStop: PO Ready
When
Where
NASD/Direct SaleNew Product DevelopmentNon-Garments (i.e. Corporate Purchasing)
National Rental/Rental ProductGarmentsExisting Product“Re-sourcing”
What
ExcludesIncludes
Reduce Rental Product Approval Cycletime to 60 Days for Sample Delivery and 30-60 days for Testing and Approval (90-120 Days Total)
Project Scope
86
GSC Project Example
Current State Future State
Process TimesCycletime:25.5 wks with iterations
(10.3 wks w/o iterations)Leadtime:11.9 wks with iterations
----------------------------------Total Time: 37.4 wks = 8.6 months = 262 days
Process TimesCycletime:12.6 wks with iterations
(7.3 wks w/o iterations)Leadtime:0.4 wks with iterations
----------------------------------Total Time: 13.0 wks = 3 months = 91 days
24.4 Weeks or 65% Reduction Identified
87
GSC Project Example
The Result:
Intangible BenefitsNew Measurement System ImplementedReduced Cycletime for Approval
Tangible Benefits$2.0MM One-Time Savings
88
On the Horizon
1. Company overview
2. Our First Steps
3. Fueling the Fire
4. Leveraging Results
5. Hitting the Bottom Line
6. What’s on the Horizon
89
Our next frontiers for Six Sigma
1. Supply Chain Driving Revenue
2. Sales Force Effectiveness
3. Leadership Development
4. Supply Chain Risk Mitigation
90
Our next frontiers for Six Sigma
1. Supply Chain Driving Revenue
2. Sales Force Effectiveness
3. Leadership Development
4. Supply Chain Risk Mitigation
91
COST
GEOGRAPHY
Domestic Global
High
Low
Quantifying,
And charging
for RISK
in the Global
Supply Chain
Cost of Goods
Supply Chain Costs
Our next frontiers for Six Sigma
92
Our next frontiers for Six Sigma
1. Supply Chain Driving Revenue
2. Sales Force Effectiveness
3. Leadership Development
4. Supply Chain Risk Mitigation
93
Our next frontiers for Six Sigma
1. Supply Chain Driving Revenue
2. Sales Force Effectiveness
3. Leadership Development
4. Supply Chain Risk Mitigation
94
Our next frontiers for Six Sigma
1. Supply Chain Driving Revenue
2. Sales Force Effectiveness
3. Leadership Development
4. Supply Chain Risk Mitigation
95
Questions or Comments?Dave WheelerDave WheelerCintas CorporationCintas CorporationVice President, Global Production & LogisticsVice President, Global Production & Logistics
6800 Cintas Blvd6800 Cintas Blvd
Mason, Ohio 45040Mason, Ohio 45040
[email protected]@cintas.com(513) 754(513) 754--35493549