Lean Process & Employee
Involvement:
Core of Innovative Manufacturing
Dave Tumbusch
Director of Manufacturing
Kim Leopold
Sr. AME Operational Excellence
Crown Equipment Corporation
Introduction to Crown
5 regional
headquarters
2.4 Billion USD
FY2013 10,700
employees
Over 500 retail locations across 84 countries
17 manufacturing plants in 11 locations worldwide
Leader in material
handling innovation
and technology
Family owned and managed industry leader since 1945
Global line of
trucks designed
to local work
practices
Innovative
fleet
management
solutions
One of the World’s Largest Lift Truck Manufacturers
Global Line of Lift Trucks
Designed to meet local standards and operator
preferences
Global Manufacturing
17 Manufacturing Plants in 11 Different Locations
North American Manufacturing
New Bremen, Ohio
(Corporate)
Troy, OH
Greencastle, IN
New Castle, IN
Kinston, NC
Queretaro, Mexico
New Bremen Manufacturing
Fabrication/Welding/Heavy Machining
Precision Machining
Wire Harness Assembly Plant/ Distribution Center
Motor Plant/Plastics
Electronic Assembly Mast Plant
Crown Company Policy:
“We are committed to leading the industry as manufacturer of choice by providing our
customers with preferred products, parts and services that will support their success as well as our own. To that end, we are dedicated to the
improvement of our people, product and processes.”
Crown Principles, Approach & Tools
Crown Principles
Crown Lean Approach • Leadership read Lean Culture by David Mann
• Developed a Plan
• Identified Modules
• Identified Sites
• Identified leads to deploy modules
• Executed a Structured Approach
• Module Development
• Subject Matter Expert Certification
• Annual Assessments
• Training for 100% of Leadership & Employees
Core Lean Tools • 5S
• Standard Work
• Kaizen
• Value Stream Mapping
• Rapid Kaizen
Structured Lean Tools
Employee Engagement Success!
Continuous Improvement Culture
People
Processes Principles
Crown Culture
Support Structure
Plant Leadership
(Lean Management System Coaches)
White Belts
(all employees)
Corporate Operational Excellence
Team*
(7 People)
*Supports all of Crown
Plant Leadership Staff
(Lean Management System & Subject Matter Expert Coaches)
(9 people)
Subject Matter Experts
(13% of support staff with at least 1
certification)
White Belts
(All Employees)
(80% Trained)
Crown’s Lean Journey
Crown’s Lean Journey
Lessons Learned • Lean Project Managers are much different than
Lean Coaches
• Focus needs to be on Developing People
• Establish standards to demonstrate desired lean
behaviors to spread across the enterprise
• Examples:
• Lean Management System
• Modules
• Whitebelt
Employee Involvement is Key
Ownership of processes and
work areas drive sustainment
Communication creates buy in
from the support staff l
Increase quality of pin points and increase safe steps
participation and feedback ratesl l l m m m
l Enhance safety teams l l l l m m m
l l lReduce process time through the reduction NVA time and
process designl l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l m l m
l l l l
Enhance IDP's w a focus on Lean tool application and
problem solvingl l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l
l l Support ops ex initiatives l l l l l l l l l l l l l l l l l l l
l Reduce Quantity of Defects (External) l l l l l l l l l l l l l l l l l l l m l m m
l l l l l Determine process capability on critical processes l l l l l m l m m
l l Improve material flow and reduce line-side inventory l l l l l l l l l l l l l l l l m m l
l l l l Increase capacity to support 5-yr projections l l l l l l l l l l l l l l l l l l l l l l l l l l l l l l m m l m
Incr
ease
Em
ploy
ee O
wne
rshi
p of
Saf
ety
Impr
ove
dire
ct la
bor
conv
ersi
on f
acto
r by
5%
to
sup
port
5-
year
pro
ject
ions
and
att
ritio
n
proj
ectio
ns
Impr
ove
plan
t Le
an a
nd p
robl
em s
olvi
ng s
kills
Red
uce
Cos
t of
Poo
r Q
ualit
y an
d im
prov
e pr
oces
s ca
pabi
lity
Impr
ove
Mat
eria
l Vel
ocity
Rat
io
Cap
acity
gro
wth
to
supp
ort
busi
ness
goa
ls
Gra
de 1
00%
of
pin
poin
ts a
nd im
prov
e al
l non
-spe
cific
/ m
easu
rabl
e pi
n po
ints
by
end
of Q
2
Incr
ease
Saf
e S
teps
par
ticip
atio
n ra
te b
y 10
% b
y en
d of
Q3
Tra
in 1
00%
of
Inci
dent
Inv
estig
atio
n te
am o
n B
asic
Pro
blem
Sol
ving
by
end
of Q
4
Red
uce
DP
MO
by
10%
by
the
end
of Q
4
Com
plet
e N
BO
milk
run
ana
lysi
s by
end
of
Q2
Dev
elop
Sta
ndar
d W
ork
for
time
stud
ies
& li
ne r
ebal
anci
ng b
y en
d of
Q1
Cer
tify
20 a
dditi
onal
RK
E S
ME
's b
y en
d of
Q4
(12
from
Mfg
gro
up a
nd 5
fro
m M
fg s
uppo
rt,
3 fr
om P
lann
ing
grou
p)
Exe
cute
cha
in a
ncho
r au
tom
atio
n pr
ojec
t by
end
of
Q3
Cer
tify
2 ad
ditio
nal V
SM
SM
E's
(in
clud
ing
1 T
rans
actio
nal V
SM
SM
E)
by e
nd o
f Q
4
Cer
tify
3 ad
ditio
nal G
reen
belts
by
end
of Q
4 (1
man
ufac
turin
g, 1
qua
lity,
1 m
anuf
actu
ring
supp
ort)
Cer
tify
4 ad
ditio
nal Y
ello
w b
elts
by
end
of Q
4 (1
man
ufac
turin
g, 1
qua
lity,
2 m
anuf
actu
ring
supp
ort)
Incr
ease
Vel
ocity
Rat
io b
y 3%
ove
r la
st y
ears
ave
rage
by
end
of Q
4 (4
5% t
o 48
%)
Impr
ove
Rus
h on
-tim
e de
liver
y to
99
perc
ent
for
Top
100
0 S
ervi
ce I
tem
s by
end
of
Q4
Impr
ove
On-
Tim
e D
eliv
ery
to 9
8 pe
rcen
t fo
r S
ervi
ce I
tem
s by
end
of
Q4
Com
plet
e &
Im
plem
ent
Dat
a T
ag p
roce
ss f
utur
e st
ate
VS
M b
y en
d of
Q4
(Inc
reas
e m
atur
ity
from
4 t
o 8)
Com
plet
e 8
war
rant
y ac
tiviti
es b
y th
e en
d of
Q4
Dev
elop
sta
ndar
d pr
oces
s to
adj
ust
com
pone
nt in
vent
ory
leve
ls (
ex k
anba
n) f
or s
ched
ule
chan
ges
by Q
4 (I
ncre
ase
mat
urity
fro
m 5
to
8)
Red
uce
Less
Tha
n 90
Day
War
rant
y to
less
tha
n 5%
by
the
end
of Q
4
Cer
tify
2 T
eam
Mem
bers
in B
SC
M (
Bas
ics
of S
uppl
y C
hain
Man
agem
ent
/ A
PIC
S)
by e
nd
of Q
4
Red
uce
num
ber
of P
lant
4 E
Os
to b
e pr
oces
sed
to le
ss t
han
100
by e
nd o
f Q
4
Mon
thly
ID
P R
evie
ws
w a
ll su
ppor
t te
am m
embe
rs b
y en
d of
Q4
Impr
ove
Gro
up L
eade
r so
ft s
kills
by
end
of Q
4
Impl
emen
t Q
uad
char
t ge
mba
boa
rds
on a
ll lin
es b
y en
d of
Q1
Incr
ease
num
ber
of M
ista
ke P
roof
ing'
s im
plem
ente
d by
30%
by
end
of Q
4
Tra
in 9
6 E
E's
on
Whi
tebe
lt by
the
end
of
Q4
Impl
emen
t 2
Inte
rnal
Key
Fea
ture
s by
end
of
Q4
Impr
ove
RR
/RM
eff
icie
ncy
by 6
% b
y en
d of
Q4
Sup
port
pro
duct
dev
elop
men
t pr
ojec
t, C
1669
, in
ord
er t
o ru
n M
CS
in N
ovem
ber,
201
5
Red
uce
RR
Plu
mb
rew
ork
truc
ks b
y 30
% b
y en
d of
Q3
PF
ME
A c
reat
ed f
or R
R b
y th
e en
d of
Q3
for
war
rant
y ba
sed
activ
ity
PF
ME
A c
reat
ed f
or R
M b
y th
e en
d of
Q4
for
war
rant
y ba
sed
activ
ity
Cre
ate
Con
trol
Pla
n fo
r w
arra
nty
base
d ac
tivity
by
the
end
of Q
4 fo
r R
M m
odel
Impl
emen
t C
leco
Tor
que
syst
em in
Cel
l 1 b
y th
e en
d of
Q1
Impr
ove
TS
P e
ffic
ienc
y by
6%
by
end
of Q
2
Dis
play
TS
/ T
SP
bas
elin
e sp
aghe
tti d
iagr
ams
in 1
00%
of
stat
ions
by
end
of Q
3
Cre
ate
Con
trol
Pla
n fo
r w
arra
nty
base
d ac
tivity
by
the
end
of Q
1
Impr
ove
SP
eff
icie
ncy
by 2
.5%
by
end
of Q
2
Red
uce
SP
rew
ork
caus
ed b
y in
tern
al d
efec
ts b
y 10
% b
y en
d of
Q4
PF
ME
A c
reat
ed b
y th
e en
d of
Q2
for
war
rant
y ba
sed
activ
ity
Cre
ate
Con
trol
Pla
n fo
r w
arra
nty
base
d ac
tivity
by
the
end
of Q
3
Impr
ove
RC
eff
icie
ncy
by 6
% b
y en
d of
Q4
PF
ME
A c
reat
ed b
y th
e en
d of
Q1
for
war
rant
y ba
sed
activ
ity
Cre
ate
Con
trol
Pla
n fo
r w
arra
nty
base
d ac
tivity
by
the
end
of Q
2
Impr
ove
Pai
nt e
ffic
ienc
y by
3%
by
end
of Q
4
Red
uce
Pow
der
Coa
t un
plan
ned
DT
by
25%
by
end
of Q
4
Com
plet
e ca
pita
l pro
ject
for
the
5-s
tage
was
her
head
er &
ris
er r
epla
cem
ent
thro
ugh
prod
uctio
n st
art-
up b
y M
arch
31,
201
5
Com
plet
e ca
pita
l pro
ject
for
the
pow
der
coat
boo
th o
scill
ator
rep
lace
men
ts t
hrou
gh
prod
uctio
n st
art-
up b
y A
pril
13,
2015
Dev
elop
a b
usin
ess
plan
for
pai
ntin
g 39
0 ya
rd p
arts
in M
X b
y en
d of
Q2
Com
plet
e tr
ansi
tion
of p
aint
std
's t
o G
RN
by
end
of Q
4
Com
plet
e ca
pita
l pro
ject
for
tab
le b
last
er r
epla
cem
ent
by t
he e
nd o
f Q
4
Do
ug
Ma
rtz
De
an
Ho
we
Me
lissa
Da
rrig
an
Bru
ce B
erg
ma
n
S S S Q C CIDP/C/Q/
DCap
IDP/C/Q/
D
IDP/C/Q/
D
IDP/C/Q/
DC/D D D C/D/Q Q D/C Q/C IDP/D/C C/D
IDP/C/Q/
S
IDP/C/Q/
SS/Q/C/D S/Q/C/D S/Q/C/D Q Q/C/D Q/C Q Q Q Q Q/Cap Q/C/D Q Q Q/C/D Q/C/D Q Q Q/C/D Q Q C/D C/D C/D/Cap C/D/Cap C/D C C/D/Cap
Plt 1 Plt 2 Plt 3 Plt 4 Plt 5 Plt 6 Plt 7 Plt 8 Plt 9 Plt 10 Plt 11 Plt 12 Plt 13 Plt 14 Plt 15 Plt 16 Plt 17 Plt 18 Plt 19 Plt 20 Plt 21 Plt 22 Plt 23 Plt 24 Plt 25 Plt 26 RR1 RR2 RR3 RR4 RR5 RR6 RR7 TS1 TS2 TS3 SP1 SP2 SP3 SP4 RC1 RC2 RC3 PT1 PT2 PT3 PT4 PT5 PT6 PT7
•Improve competencies of NBO Manufacturing staff and
manufacturing support teams
• • • • • •Execute FY15/16 operating budget, capital plan, and cost
reduction targets
• •Reduce cost of poor quality by 10% by improving the quality
of our processes and productsl
• • • • •Apply lean tools to reduce and/or eliminate waste in our
processes.m
2015-2016 Plant 4 Operations Strategy Deployment X Matrix
Owner: Chris
Rohrbach
Champion : Dave
Tumbusch
Primary Responsibility
Secondary Responsibility
Reduce TCIR and LWCIR by 25%
Team Members
•
FY 2015/16 AnnualTargets(when &
how much)
2015/16 Breakthrough
Objectives (what)
Top Level AIP's
(what)
2nd LevelAnnual Improvement
Priorities-AIP's FY2015/16
(how)
2015 - 2016 OBJECTIVES APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MARFrequency Rate 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
TCIR < 2014 (4.72)
Severity Rate 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
LWCIR < 2014 (1.57)
Internal DPMO
External DPMO Goal <TBD
Project Warranty Activities Closed 1 1 2 3 3 4 5 5 6 7 7 8
OTD Goal 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0%
OTD Actual
97.0% 97.0% 97.0% 97.0% 97.0% 97.0% 97.0% 97.0% 97.0% 97.0% 97.0% 97.0%
98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0%
98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0% 98.0%
Direct Labor Conversion Factor 76.7% 76.7% 76.7% 76.7% 76.7% 76.7% 76.7% 76.7% 76.7% 76.7% 76.7% 76.7%
Overall Conversion Factor 67.3% 67.3% 67.3% 67.3% 67.3% 67.3% 67.3% 67.3% 67.3% 67.3% 67.3% 67.3%
Plant 4 On-Time Delivery to Service
Orders
2579
7211
Focus on foundational tools that
create sustainable habits
5S
Standard Work
Kaizen & Rapid Kaizen
Value Stream Mapping
Set Up Reduction
TPM
Continuous Improvement
Tools & Training
5S • Indicates change is happening
• Applicable to both office and manufacturing areas
Operator Standard Work • Baseline for improvements
• Difference between Standard Work (What) &
Work Instructions (How)
“Where there is
no standard,
there can be no
kaizen”
– Taiichi Ohno
Kaizen Events • Engage people in implementing ideas
• Teamwork (cross functional roles)
• Quick wins
• Build Momentum
Value Stream Mapping • Organize change efforts and resources
• Connect improvements to corporate strategy
• Connect value streams across the business
Rapid Kaizen Events • Point Improvements
• Achieve Target Conditions
• Use tools such as
• Gemba Walks
• Spaghetti Charts
• PDCA Cycles
Whitebelt • “Lean Fundamentals”
• Creates a common language
• Hands on application of lean tools
• Generates excitement for lean application in their
work areas
Lean Management System
Leaders responsibility: • Is the process running as
designed?
• How can we improve the
process?
We focus on the
Respect for People!
4 principle elements of LMS • Leader Standard Work
• Visual Controls
• Daily Accountability
• Leader Discipline
Plant Mgr
Group Ldr
Prod Mgr
Mfg Supv
Crown Challenge • Engages and rewards employees
• Improves communication and teamwork
• Supports business goals and objectives
• Safety, Quality, Delivery, Cost, and Operational
Excellence
• Creates a standard recognition process for
achievements
Our Next Steps
Our Strategy for Manufacturing • Focus on implementing and developing Subject
Matter Experts in the Foundational Modules at each
site
• 5S
• Standard Work
• Kaizen
• Value Stream Mapping
• Rapid Kaizen
• Leadership continues Lean Management System
training and developing themselves as Lean Coaches
• Annual Progress Assessment
• Our intent is that our:
• Org structure will change as sites become less
dependent on the corporate team
• New areas will be developed similar to
manufacturing
• Developing Subject Matter Experts in Core 5
Tools
• Advanced Lean Experts will increase and
become coaches to new Subject Matter Experts
• Leadership will be trained and help deliver
training to new leaders (“Walk the Talk”)
As we grow…
Future Training & Modules • Advanced Lean course for
Subject Matter Experts
• Facilitation Training for
Subject Matter Experts
• Transactional Lean
Application Training and/or
Modules
• 3P (Production Preparation
Process) Module
For your consideration…
For your consideration… • Put together a plan
• Focus your efforts
• Conceptual Training / Common Language
• Use proper tools to address problems
• Create an environment for involvement
• Determine your method to drive sustainment
• Leadership involvement
Thank You!
Please complete the session survey at:
www.ame.org/survey
Session: TP/07
Lean Process & Employee Involvement:
Core of Innovative Manufacturing
Dave Tumbusch / Kim Leopold
Crown Equipment Corporation [email protected] [email protected]
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