Canadian Collision Industry Forum

Mississauga, Ontario

January 21, 2006

Process & Innovation Committee

Committee Members Ken Friesen, Concours Collision Tony Canade, Assured Automotive Bob Dubreuil, Akzo Nobel Paul McFarlane, The Boyd Group Mark Bonsor, Dupont Wayne Riley, Aviva Canada Neil Anderson, Anderson Consulting Tom Bissonnette, Parr Auto Body

PROCESS ENGINEERING Your Business Where Do I Start ?

Ken Friesen Process Mapping Tony Canade’ 7 Types waste Bob DuBreuil 5 ‘s

Admin Process

Total Days: 32 Steps 42 Value 13 Travel People 1478ft. Product 524ft. Time Total 156min. Non Value 128min. Value 28min.

Planning Process

Total Days: 12 Steps 54 Value 5 Travel People 4029ft. Product 524ft. Time Total 131min. Non Value 94min. Value 37min.

Production Total Days: 5.5 Steps 48 Value 11 Travel People 8173ft Product 1524ft Time Total 684min. Non Value 113min. Value 571min

Total Total Days: 19.5 - 32 Steps: 144 Value: 29 Travel People: 13,680ft 2.6 miles Product: 2,577ft .5mile Time Total: 971min. 16.2hrs. Non Value: 335min. 5.6hrs. Value: 636min 10.6hrs

Waste - Muda

“Muda” means Waste – specifically any human activity which absorbs resources but creates “no value” to the Customer (insurer, vehicle owner)

7 Types of Waste

Rework – product or admin. Overproduction –of goods

not needed by next step Inventories – goods waiting

to start or further processing

7 Types of Waste

People Movement – office/shop Product Movement –

office/shop Process Time – goods /admin. Waiting/Sleep Time

Based on Japanese words that begin with “S”.

5S philosophy focuses on: Work place organization Standard Operating

Procedures

What is 5 S?

Simplifies the work environment

Reduces waste Reduces “non-value” activity Improves quality efficiency Improves workplace safety

What is 5 S?

Sorting (Seiri) Set in Order (Seiton) Scrubbing Clean (Seiso) Standardizing (Seiketsu) Sustain (Shitsuke)

What is 5 S?

Why 5S? • Eliminate waste from

uncontrolled processes• Improve delivery consistency• Gain control of equipment,

material, and inventory• Improve quality• Improve safety• Improve consistency

# 1 – Sorting

Process to eliminate unnecessary items from the workplace

Tag and evaluate need Move occasional use items to

storage location Discard unneeded items (scrap

etc) Get rid of “J.I.C.” mentality

Systematic Sorting & Organization Eliminate space taken up by unneeded items-huge

toolboxes, benches, scrap parts Remove outdated papers and files Reduce cabinets, shelving, lockers that have no

current use Eliminate outdated posters, wall boards, metrics,

slogans, banners

# 2 - Set in Order

“A place for everything and everything in its

place” Equipment – shop and office Tools Cabinets and files Brooms and trash cans!!

Sort Visual Colour System

Work areas (mark on the floor) Aisle ways Equipment locations Storage locations

#3 - Scrubbing Clean

The cleaner the better Clean areas where red tagged items

were removed Remove dirt, oil, scrap, and garbage Look at lighting Clean on a daily basis Audit the cleaning process Improve equipment maintenance

Scrubbing Clean Clean aisles, walkways, floors,

machines, desks Assign cleaning responsibilities Create target areas: equipment,

floors, inventories Cleaning checklists Correct deficiencies Cleaning is a team effort Correct root cause of messy areas

# 4 - Standardize Standard Operating

Procedures Implement “SOPs” in all areas Involve staff in developing “SOPs”

Involve vendors Involve consultants Document all SOPS

Standardize

Step 1: PlanningWho does what and when

Step 2: AllocationAssign resources to tasks

Standardize Step 3: Act

Train all employees

Step 4: Implement

Step 5: Verify Ensure effectiveness

# 5 - Sustain Most difficult of the 5 S Employees tend to return to “comfort zone”

Need to monitor and influence until new culture becomes the “status quo”

Takes time!!

Benefits of 5S Increased efficiency Increased productivity Increased profitability Improved moraleA nicer place to work

Clean is Lean!

“THANK YOU FOR YOUR TIME!!”

Please join us in our Breakout Session this Afternoon!!