ConMed Managing Times, Q4 2009

MANAGINGQ4.09

S h a r i n g S o l u t i o n s f o r Y o u r L e a n J o u r n e y

TIMES

Amway Helps Local Charity ApplyLean Principles

Mel Haught,Pella’s VisionaryLeader

8

Standard Workand Pace at Pella Corporation

12 13

ConMed Corporation: Extreme Lean Expedites Efficiency for Medical Device Manufacturer

In this issue we feature ConMedCorporation, the 2008 Perfect Engine SiteAward winner. ConMed began its lean journey in 2006 and has created a businessculture that uses continuous improvement toinnovate, focus on the customer, and reliablybring new products to market. ConMed’stransformation is an impressive one becauseof their expedited approach to developing alean culture and the discipline required togenerate and sustain rapid business improve-ment. ConMed did in just one year whatmany companies do in three.

If you ask David Johnson or Don Keelerat ConMed how they did it, they wouldattribute the transformation to strong committed leadership; extremely aggressiveimplementation, including clear objectives,discipline, and accountability; a robust con-tinuous improvement cycle; a technologically-advanced visual management system; and anarmy of dedicated employees.

Also featured in this issue is the retiringCEO of Pella Corporation, Mel Haught,another visionary leader who led a company-wide LeanSigma® transformation to create ahigh-performance organization. The PellaStorm Door plant in Clear Lake, Iowa, alsowon the Perfect Engine Site Award in 2004.

One company profiled in this issue hastaken lean a step further, to help the peoplein its local community. Amway Corporation,based in Grand Rapids, Michigan, helpedthe Kids’ Food Basket, an organization thatprovides meals to school children at risk ofgoing without, streamline its meal-packingprocess, saving time and improving quality—all of which allowed Kids’ Food Basket toexpand capacity to help more children in need.

This December, I will host CEO BootCamp, an intimate, one-on-one opportunityto meet and learn from leading CEO practi-tioners who aggressively leverage lean as atool for market dominance. Attendees willspend three days meeting directly withCEOs from four leading companies who

PUBLISHER’SNOTE

have led their organizations through a leantransformation: Steinway & Sons, SealyMattress, ConMed Corporation, and H&TBattery Components. If you’re trying leanbut not succeeding, if you are thinkingabout getting started but not certain if it’sworth the time or effort, or if you just wantto benchmark your program against another,consider joining us for an inspirational,thought-provoking tour of outstanding leanorganizations.

A visit to these facilities or any otherPerfect Engine Site Award winner will leaveyou energized and ready to return homewith a renewed focus on your ownLeanSigma® transformation. Whether youjoin us for a vision tour, attend CEO BootCamp, or pick up the phone and chat withsomeone at one of these exceptional companies, I am certain you’ll reconsider the intensity of your own initiative and seekways to drive better results, faster than everbefore. This economy will take a turn for the better some time in 2010 or 2011 andyou won’t want to miss the opportunity to leapfrog your competition and go for the gold.

Anand Sharma Co-founder & CEOTBM Consulting Group, [email protected]

Seeing Is Believing

A publication of TBM Consulting Group

4400 Ben Franklin BoulevardDurham, North Carolina 27704 800.438.5535 www.tbmcg.com

PublisherAnand Sharma: [email protected]

Executive EditorWilliam A. Schwartz: [email protected]

Managing Editor Julie Poudrier

Featured Columnists Bob O’Briant Anand SharmaTravis Jansen Chris Wilson

Contributors Herb Brown Angela ScennaCarl Deeley Florence StutzmannCheryl Groves Joe TiptonGerard Messai Scott VannarsdallBob O’Briant Ken VanWinkle

Art Direction and DesignIONA designwww.ionainteractive.com

Printing Carter Printing & Graphics, Inc.www.carterprintingnc.com

Published in Durham, NC 4400 Ben Franklin BoulevardDurham, NC 27704

TBM, the TBM logo, and LeanSigma® are registeredtrademarks of TBM Consulting Group, Inc.

If you would like to receive this journal via email,send your vital information including emailaddress to [email protected]

On the cover: Utica, NY-based ConMedCorporation used an expedited approach to leanimplementation to improve customer-centricity,reliability of supply, and sales growth and profitability.

Marc Kincade is the new plant manag-er for Pella in Columbia, SC. … FrankStroscio is the new lean leader at ConMedin Utica, NY. … Don Healy is the new vicepresident of operations at Visiogen in Irvine,CA. … Erik Vaal, former KPO Manager atVermeer is now Carlisle Operating SystemDirector for Carlisle Food Service Divisionin Oklahoma City, OK. … Charlie Allen isthe new corporate KPO for Bunge inEurope. Allen is an American who has beenwith Bunge for about 15 years, the past 10or so in Geneva. He speaks fluent English,French, and Russian. … Michael Edwards,managing director for Scholle Asia Pacific,has been promoted and is now also responsi-ble for Scholle Europe. … Keith Grala hastaken the position of CI regional managerfor Multiserve Australia, relocating fromNew Zealand to Australia. … StuartFalconer has been promoted to plant man-ager for McCain Penola SA Safries. …Melissa Sawin recently joined Mid-Continent Engineering in Minneapolis,MN, as business development manager forhealthcare. … In corporate news, Fosfértil,the leading supplier of raw materials forBrazil’s fertilizer industry, received theMelhores e Maiores award from Exame mag-azine. The award is a benchmark for compa-nies operating in Brazil, and Fosfértil wasfirst in the petrochemical and chemical sec-tor, on the basis of a number of factorsincluding profitability, financial health,investments, market share, and productivityper employee. … The TBM LeanSigmaInstitute congratulates those who successful-ly completed its Lean Certification course in2009. To date, graduates are as follows:Denise Koster, Access Business Group, Ada,MI; Gary Shadick, Appleton Papers,Appleton, WI; Keith Waninger, Best HomeFurnishings, Ferdinand, IN; Jeff Chevalier,CertainTeed Corporation, Kansas City, KS;Kristin Lund, DST Output, SouthWindsor, CT; Jamie Smith, GrafTech,Clarksburg, WV; Pablo Rocha, GrafTechMexico, Apodaca, Nuevo León; Ben Cole,Harsco Air-X-Changers, Tulsa, OK; MarkElinski, Harsco HTT, Columbia, SC;Robert Siebenaler, Harsco IKG Industries,Garrett, IN; Carlos Rodriguez, HarscoPatent, Paramus, NJ; Doug Shuff, HarscoHR, Camp Hill, PA; Rick Byrd, HarscoHTT, West Columbia, SC; Phil Mackey,Harsco IKG Industries, Carnegie, PA; RobMcKenzie, Harsco Metals, Surrey, UK; PaulNott, Harsco MultiServ, Port Talbot, UK;

LEANCOMMUNITYNEWSMANAGINGQ4.09

TIMES

1

PUB

LISH

ER’S

NO

TE. L

EAN

CO

MM

UN

ITY

NEW

S

Managing Times | Q4.09www.managingtimes.com

Phillip Turner, Harsco Infrastructure SGB,Staffordshire, UK; Daniel Tranotti, HarscoPatterson Kelley, East Stroudsburg, PA;Bryan Welch, Milbank Manufacturing, ElDorado, AR; Tom Weiss, MilbankManufacturing, Kansas City, KS; LarrySterling, Milbank Manufacturing, Kokomo,IN; Cole Foley, Owens Corning, Amarillo,TX; David McCain, Owens Corning,Amarillo, TX; Glenn Benton, OwensCorning, Duncan, SC; Nadia Holloway,Owens Corning, Fairburn, GA; Bill Mars,Owens Corning, Fort Smith, AR; LarryGrant, Owens Corning, Granville, OH;Jason Younggren, Owens Corning, KansasCity, KS; Desha Smith, Owens Corning,Ladysmith, WI; Rich Baughman, OwensCorning, Springfield, TN; Felix Alonzo, Owens Corning, Toledo, OH;Anand Brahme, Owens Corning, Toledo, OH; Martin Kvetko, Owens Corning, Waxahachie, TX; Laura Jackson, Phifer, Inc., Tuscaloosa, AL; Becky Klotz, QuadTech, Sussex, WI;Gretchen Whitcomb, Saint-GobainContainers, Milford, MA; Tom Shehy,Seaman Corporation, Wooster, OH;Ricardo Goncalves, Vetrotex (OwensCorning Brazil), Rio Claro, SP Brazil; and Mike Schuh, WIKA Instruments, Ltd., Alberta, Canada.

Lexington, KY-based Link-Belt hit a milestonethis summer, reaching its 100th kaizen event. The company has had 318 people on events—about 46 percent of its population--from acrossmany areas, including the shop floor, purchasing,design engineering, and accounting. Link-Beltmarked this milestone with a celebration at whichapproximately 190 team members from previousevents showed up for cake and a picture.

CASESTUDY

2

Improving on SuccessConMed is a global medical technology

company, based in Utica, New York, thatspecializes in the development, manufacture,and sale of products that enable physiciansto deliver high-quality care and enhancedclinical outcomes for their patients. TheConMed name is recognized across theworld as a technological leader for theirmedical devices and instruments for surgicalprocedures.

ConMed has experienced great successthrough the integration of strategicallyselected acquisitions. Traditionally, the company has moved acquired product linesinto its facilities in their current state. As aresult, ConMed inherited a number of manufacturing processes that were often veryinefficient and wasteful. Rapid growth andservicing the customer took priority overimprovement, and the acquired productswere brought on line “as is.” ConMedended up with large quantities of work-in-process (WIP) inventory, low productivity,and excessive safety stock to try to guaranteetimely delivery to customers.

The situation was ripe for examiningprocesses with an eye to removing wasteful-ness and increasing productivity. ConMedchose to embark on its lean journey as a

means to grow the business, enhance customer service, and expand profitabilityfor their employees and shareholders.

Lessons Learned: Where To BeginMany companies take a standard approach

to their lean journeys, starting with the shopfloor and branching out to other areas onceoperational excellence has been achieved.More recently, a number of companies havedecided to take a more accelerated approach,realizing that greater benefits will accruemore rapidly if they are willing to dive indeep from the start.

But that deep dive takes commitment.According to Dave Johnson, Vice Presidentof Global Operations for ConMed, a leanjourney needs to be driven from the topdown, but executed from the bottom up.Says Johnson, “It’s leadership first andaccountability second, and then it’s execution with metrics.”

“I tell other companies that this isn’t aprogram, it’s a cultural change,” he adds.“And if you really want to do that, then youmust get buy-in from your senior manage-ment team, put your best people into a continuous improvement (CI) function, andthen, as the senior champion, you must startwalking the talk on the shop floor on a dailyand weekly basis.”

Another lesson Johnson learned early on isthe need to integrate the Finance Depart-


Becoming More Reliable through LeanSigma®

A Utica, New York-based manufacturer of medical devices uses LeanSigma to improve

customer-centricity and reliability of supply.

Steve Hahn, TBM Senior Management Consultant

––––––––––––––––––––––––––––––––––

“ . . . with an eye to removing

wastefulness and increasing produc-

tivity, ConMed chose to embark on its

lean journey as a means to grow the

business, enhance customer service,

and expand profitability for their

employees and shareholders. ”––––––––––––––––––––––––––––––––––

ment from the start. Without their buy-in,it’s difficult to show improvements in ameaningful way. “Our finance team can provide reports that show productivity at thecell level, and can differentiate betweenkaizened and non-kaizened lines,” notesJohnson. “We’re showing an 18-to-20-pointspread in productivity between kaizened andnon-kaizened lines. And what’s being reported out in our Friday kaizen debriefingsis being corroborated by the monthly reportsgenerated out of Finance.”

“A common mistake companies make isnot aligning their financial metrics andreporting structure to highlight the resultsyou get out of lean,” he adds. “We’ve takenour financial reporting to the point wherewe can capture variances in output, material,labor, rate, yield, and other items right downto the cell level.”

According to Johnson, although the wholeprocess of starting on a lean journey soundssimple, many companies do not perform itwell. The foremost complaint he’s heard inhis travels is that many companies just throwa lean function together and don’t give it anyteeth, dooming it to failure, or at least notgreat success.

“My philosophy is that, as the seniorleader, I must lay out the vision to the staff,put our ‘A’ players in charge of it, and thenwalk the talk every day,” says Johnson.“Walking the lines every morning createshigh visibility and is a means of holdingyour people accountable. We didn’t do apush onto the organization—the resultsspoke for themselves which actually created apull with people wanting to get involvedbecause they could see and feel the positiveresults.”

It’s that sort of passion from the top, thewillingness to walk, to talk, and to holdeveryone accountable that will start a leanjourney off on the right foot. At ConMed, itnot only started the journey, but accelerated its acceptance.

When deciding where to actually beginkaizen work, ConMed took an outside-inapproach, looking for its customers’ painpoints and focusing on products with supplyproblems or abnormally high backorders.

“We weren’t trying to get faster or savemoney; we were trying to become more reliable,” says Johnson. “Our execution wasunpredictable and not aligned with customerdemand.”

Johnson spent time with his managementteam, and with the people in the Sales andMarketing Department, to find out wherethe pain points were. As a result, many ofthe events conducted over the past 18months have been focused on productswhere a 24-hour turnaround on orders isexpected. He notes that, from a strategicstandpoint, once the Sales and Marketingpeople saw what a difference the kaizenevents made, they became “instant zealots.”They recognized how great an impact leanhad on reliability of supply, reduced costs,and improved quality. “My Operations teambought in because they had to, but I didn’thave that luxury with Finance or Sales andMarketing,” says Johnson. “I had to con-vince them through execution and results.”

Clear and Consistent ResultsIn their first year, ConMed successfully

completed 33 week-long kaizen events,including 23 shop floor kaizen breakthroughevents, six single-minute exchange of dies(SMED) events, three business processkaizen events, and one managing for dailyimprovement (MDI) event. For all events,the company established a set of standardobjectives:

• Improve productivity by 20 percent• Reduce floor space by 40 percent• Reduce line-side WIP by 75 percent

Characteristically, those objectives werenot only met, but exceeded, with productivi-ty being improved by 22 percent, floor spacereduced by 66 percent, and WIP reduced by85 percent.

More specifically, through its lean activities ConMed freed up 38 seasonedemployees, who were then available to staffnew initiatives. Considering a cost of $150per square foot for clean room space, the16,868 square feet of space that the company opened up translated not only intoa savings of more than $2 million, but also

3Managing Times | Q4.09www.managingtimes.com

CASESTUDY

represented space that the company couldthen fill with new production. Likewise,WIP reduction represented nearly $1 mil-lion in savings. Increased efficiencies createdthrough lean allowed the company toremove nearly half a million dollars’ worthof small equipment and fixtures. But all ofthese gains were just another way of improv-ing reliability for ConMed’s customers.

Real CommitmentOften, companies struggle with a lean

transformation because their associates don’tsee a firm commitment from company leadership that clearly indicates the changesare for real and will be lasting. This is the“initiative of the month” syndrome that colors the expectations and actions of somany members of any manufacturing workforce. ConMed leadership recognizedthe problems these attitudes can engenderand took proactive steps to ensure thateveryone would see the company’s commit-ment to the process.

To that end, the company built an 8,000-square foot Continuous ImprovementCenter, which includes four CI team roomsand a presentation room with seating for120 people. Don Keeler is the manager ofConMed’s Continuous Improvement Officeand, along with his staff of five, provides thekey ingredients required for a rapid andeffective transformation:

• Strong, committed leadership• A robust CI office• Extremely aggressive implementation• Visual management and modern

technology• Dedicated employees

Committed leadership is already in placein the form of Dave Johnson and his man-agement team, which includes Keeler. Keelernotes that he has a top-notch staff of hisown—the same “A” players that Johnsonfeels are fundamental to showing commit-ment and getting the job done. According toKeeler, “You’ve got to like what you do andthis is what I enjoy doing. We’ve been get-ting great results for the company, and to

Abnormality ResponseTo help drive accountability, ConMed hasinstalled a state-of-the-art visual manage-ment system, which includes andon lightsfor abnormality management and electronic messaging to responsible parties.

Line-side KiosksLine-side kiosks allow individual workcells to keep track of their performancemetrics at the cell.

SQDC TrainingBy placing clear explanations of basiclean topics where anyone can easily viewthem, ConMed has helped ensure a higher level of understanding of basiclean principles among all employees.

Touch-Screen DisplaysTouch-screen SQDC wall monitors keepmorning walk-through activities outsideof the clean rooms where productiontakes place and they enable any employ-ee throughout the plant to monitor anyproduction line within the plant.

Morning Walk-Through “Status”Keeler created a spreadsheet that heuses as part of his morning walk-through.The sheet lists each production line, theAndon status of that line, an area forexplanation of the Andon lights, and theperson responsible for that line. This isanother example of accountability management at ConMed. At the end ofthe morning walk-through, the updatedsheet is e-mailed to Johnson.

Andon Implementation TrendsThe Continuous Improvement Officekeeps track of Andon light implementationtrends. By doing so, they can keep trackof what lines have recurring problems,and they can use the trend data to beproactive in addressing potential problems.

World-Class Visual Management

Dave’s point, the key to my success is that Ihave the strong backing of the executivemanagement.”

“Without the leadership from executivemanagement, I could not have been as successful, or led my teams as well as I havebeen able to. It’s a team effort from the topdown,” he continues.

So how did the company start implemen-tation at all levels? Effective education wasthe most important step taken to prepareeveryone for the lean transformation. ForConMed, education began at the top, withan executive Quest for the Perfect Engineevent in May 2007. This was followed by 5Straining. Says Keeler, “We deal with a multi-cultural group—12 different cultures—andwhen we started talking and teaching about5S, there appeared to be a lot of confusion,so we generated a special 5S training moduleand took 1,100 employees and broke theminto groups of 50 and trained all of them on5S. All three facilities received a 2–2.5-hourtraining module on 5S, which made a verybig impact here. It took us three to fourweeks to do that, but once we got everyoneeducated to 5S, it made a huge difference.”

In fact, training is continuously availableto employees through a wall monitormounted in the main hallway at the plant,which Keeler calls his “Public Relations”monitor. Strategically situated where every-one will pass it, the monitor consists of threeelements:

1. A large screen on the left continuously runs PowerPoint training modules, which Keeler changes monthly. Employees passing down the hallway can pause and take in a training moduleon their way to or from lunch or a break.

2. In the upper right of the monitor’s screen is a video player. Observers can select from a number of lean transfor-mation videos and play them on the monitor.

3. Below that is a continuously running screen of results sheets from each production line or cell that has partici-pated in a kaizen event. It scrolls


through productivity improvements, quality, cost, and square footage improvements for each line that was kaizened.

According to Keeler, “People use it a lot—they like watching the training modules andthe videos. It is always current and they caneasily see all data from the most recentevents. We can’t fit 1,100 employees in ourpresentation room, so this gives everyone achance to see the presentations from kaizenevents. It’s a great communication tool.”

“ My philosophy is that, as

the senior leader, I must lay out

the vision to the staff, put our ‘A’

players in charge of it, and then

walk the talk every day. ”Another educational tool that Keeler’s

group has employed is a large hallway bul-letin board with an explanation of safety,quality, cost, and delivery (SQCD). “Oncewe had the 5S training program we still hadsome people with questions such as ‘Whatdoes safety mean?’ or ‘What does qualitymean?’,” Keeler remarks. “It’s a lot for somefolks to absorb all at one time, so I set upthis explanation board and it’s been very suc-cessful at helping teach people what SQCDreally means.” Again, by placing clear expla-nations of basic lean topics where anyonecan easily view them, Keeler’s team hashelped ensure a higher level of understand-ing of basic lean principles among allemployees.

Visual Management and AccountabilityAs Johnson noted, accountability is the

second key ingredient to a successful leantransformation, and part of what drivesaccountability is effective visual management.ConMed has established a state-of-the-artvisual management system, which includesandon lights for abnormality managementand electronic messaging to responsible parties.

Instead of the typical red, yellow, greenconfiguration of andons, ConMed has takenthem a step further to also include a bluelight. A red light means that the line isdown; a green light means that the line isrunning, and a yellow light means that theline has problems. Blue indicates that theline is out of material or too low on materialto meet the production schedule. At aglance, a supervisor can look at the combi-nation of lights and know exactly what isgoing on at a particular line. For example, ifboth the red and blue lights are on, then theline is down due to material shortage. Ifboth red and yellow lights are on, then theline is down due to a line problem. And ifthe green and yellow lights are both on, then the line is running, but with a problem, and so on for the other possible light combinations.

But the company didn’t stop there—theyalso use available technology to ensure thatthe responsible people would be notifiedimmediately of any issues on a line. “Within12 seconds of an operator throwing a switchon the wall, an e-mail is executed to anyoneinvolved with that particular line,” saysKeeler. “An e-mail is also forwarded to thoseindividuals with Blackberries, so they’ll getthe message no matter where they are.”Keeler notes that if someone on the produc-tion floor throws a switch, the personresponsible for that line must contact themand let them know when the abnormalitywill be addressed and provide a date bywhich it will be done. “Those dates don’t getchanged,” he says. And because the responsi-ble parties are also listed in the kaizen news-paper, there’s no avoiding accountability.

The Continuous Improvement Office alsokeeps track of andon light implementationtrends. By doing so, they can keep track ofwhat lines seem to have continuing prob-lems, and they can use the trend data to beproactive in dealing with potential problems.

The company also installed touch-screenwall monitors, which allow anyone to reviewthe performance of any line in the plant.“That’s where we, the senior managementteam, do our walk-through every morning at

8:00 a.m. without fail,” says Keeler. “Wereview safety, quality, delivery, and cost forevery line on these touch screen displays.”

The wall monitors offer several advan-tages. First, it’s a way of keeping SQCDactivities outside of the clean rooms whereproduction takes place. It also enables anyemployee throughout the plant to monitorany line within the plant. Anyone can go toa screen, select a line, and walk throughevery chart to see where that line stands cur-rently, as well as view trend sheets for theentire year.

The data displayed on the monitors isentered into preset templates at the end ofeach shift by the supervisor or lean coordi-nator. It takes about ten minutes at the endof each shift. Then, Keeler and his staffdeploy that information in a content manag-er so that all charts are updated before the8:00 a.m. walk-through.

Keeler also has created a spreadsheet thathe uses as part of his morning walk-through.The sheet lists each line and the andon sta-tus of that line. It has an area for explana-tion of the andon lights and lists the personresponsible for dealing with the problem, aswell as a date by which the problem will becorrected. “By 8:15 a.m., I’ve completed thissheet, and no matter where Dave is, thesheet is e-mailed to him and he knows thestatus of the walk-through,” notes Keeler.

And that’s just another link in the accounta-bility chain.

Another area where ConMed truly shinesis with standard work. Check any line andyou will see the standard work for that sta-tion clearly delineated in charts above theline. The standard operation sheets includetext and photos to make clear the step-by-step procedures that are to be followed for aparticular process, with a chart below thatlists the steps, their takt time, and the toolsand equipment needed for each step.

Powerful IngredientsConMed has taken a multipronged,

aggressive approach to its lean transforma-tion. As a result, the company has achievedimpressive results at a much faster rate thannormal. It’s not an easy task, but as ConMedhas discovered, the results are well worth theeffort, and as Johnson notes, “It’s all aboutresults.”

“If you don’t have the metrics in place andyou aren’t holding yourself accountable, andyou aren’t executing and course correctingwhen you need to, then it’s just an exercise,”he adds. “And that’s where most companiesfail—because they can’t measure it; they can’texplain it.”

Johnson goes on to say, “I think anothermistake companies make is that all too oftenthe operations people do it for their own

CA

SE S

TUD

Y


benefit, instead of looking at the processfrom the customer’s perspective. Lean isoften viewed as a cost-reduction opportuni-ty, but we very much took the approach thatit was a growth strategy. It’s a big philosoph-ical difference because people look at leanand say ‘I can take money out of the system,’ whereas for us it’s a form of reliabil-ity. I don’t think we’ve ever emphasized costas much as we have supply.”

Keeler adds, “If you don’t have the seniorexecutive backing, it will not work. I’ve putmy heart and soul in this for many hoursevery day—leadership is the key to thewhole thing.”

It’s clear that ConMed lacks neither leadership nor commitment. Combinedwith clear objectives, discipline, andaccountability; strong visual managementthat helps to maintain both sustainabilityand accountability; and dedicated peoplethroughout the organization, ConMed hasfound the right ingredient mix to create thekind of results it seeks in order to be reliablyresponsive to its customers and remain apremier provider of medical and surgicaldevices.

At the TBM Executive Exchange thispast spring, the assembled company principlesand owners agreed that they were focused onresizing and rebalancing their businesses asthey dealt with the global economic recession.As they acknowledged the struggle, they alsosaw this crisis as an opportunity to emergein a position of strength—even in toughtimes, destinies can be improved. It’s possible to leverage the current economicclimate to come out better in the future, andthese are the six steps these leaders believedcould help meet that goal.

Dive Deep and FastDrive lean deeper and faster into your

culture. Create internal bench strength andnurture lean leaders—the skills and depth ofknowledge you create now will be yourpower of the future. Refocus on kaizen activity: set clear objectives for events, andthen make sure to measure results and putmethodologies in place to ensure sustainment.

Create visual factories. As Dave Johnsonof ConMed noted in this issue’s case study,effective visual management is essential todrive accountability. A more visual factorywill make it easier for everyone to beinvolved. And that increased involvementwill help engender the viral spread of leanthroughout the organization.

Aggressively Commit to Policy DeploymentPolicy Deployment is the means by which

a company sets priorities and aligns its business goals. “We’re not ready” is nolonger a valid excuse. If you want to weatherthe current economic storm and come outstronger, then you must find a way tobecome extremely focused on the critical fewbreakthrough objectives that will drivemeaningful top- and bottom-line growth.This means creating the internal processes tomake significant change in the way you dobusiness. A number of companies—Vermeer,Pactiv, Hubbell, and Brady among them—are aggressively using Policy Deployment toconfront the current economic crisis and stillstay on top.

Align Business Metrics and PurposePolicy Deployment is a significant aspect

of business alignment, but you should alsoseek the opportunity to be certain that yourKPIs are aligned with your strategic objec-tives. Are you measuring what really mat-ters? Be certain that a target set of KPIs isdirectly tied to high-level business needsaround sales, profitability, customer retention,organic growth, and safety, to name a few.KPIs should be visible and easily understoodthroughout the organization—everyoneshould know what the goals are.

Install the discipline of daily, weekly, andmonthly management engagement meetings.Make sure that people are preparing and following action plans, performing rootcause analysis, and focusing on implementingimmediate countermeasures.

Create a Formal, Robust, MeasurableVOC Process

Are you focused on the customer experience? Do your new products reflectfeatures, benefits, or services that are meaningful—and can support higher pricesand better margins? If less than 20 percent ofyour current sales each year comes from newproducts, you need to ask why. Perhaps youdon’t have the processes you need to driveinnovative product development. For example, QuadTech used voice of customerand value innovation curves to develop newstrategies for three markets. As a result, theyhave entered two markets where they had no previous presence.

Your strategic planning process shouldunearth the greatest business opportunities.Your Policy Deployment process should support the effort and help drive a focusedinitiative to achieve the things that reallydrive step-change growth in your business.

Form Breakthrough SWAT TeamsIf you’ve got extra resources, get a team of

people focused on fixing a problem quickly.In law enforcement, a SWAT team is astrategic weapons and tactics team. Nophysical weapons are required here—inbusiness your weapons are the minds andskills of your team, their ability to developcreative solutions and implement themquickly, and their ability to learn from mistakes and continue to innovate. Suchteams can be on call as needed, and theirmake-up and frequency of deployment willdepend on the complexity of the problemthat needs to be solved.

Leapfrog Your CompetitorsRemember, in a global crisis like this,

everyone is hurting. Use this time to takeadvantage of their issues. If you have refocused your continuous improvementprogram and you’ve embraced PolicyDeployment, and if you’re eliminatingwaste, freeing up capital, making space,and meeting your lead-time require-ments, there’s a good chance you cansteal market share, make competitorsirrelevant or buy them, or even expandinto new business segments. Use thistime—and your lean expertise—toexcel, leapfrog, and win.


STRATEGICVISIONINGSix Steps to Sensational: Key Learning from Our Client ExecutivesAnand Sharma, Co-founder and CEO, TBM Consulting Group

CA

SE S

TUD

Y, R

AD

ICA

L ST

RA

TEG

IC V

ISIO

NIN

G

Most people have heard of Amway and arefamiliar with its network of global independentbusiness owners. Amway was founded 50 yearsago in West Michigan by two friends, Jay VanAndel and Rich DeVos. The company’s globalsuccess is well-known, and that success has con-tinued even in the recent economic downturn:Earlier this year, Amway announced record salesfor 2008 of $8.2 billion, a 15 percent increaseover 2007 sales. But this story isn’t aboutAmway’s corporate success, which is fairly obvious to anyone who follows the company; it’sabout giving back to the community.

Throughout Amway’s existence, it has heldclose to its core values of freedom, family, hope,and reward. As an extension of those values—caring for people and communities—the company has made a habit of making a differencethrough charitable contributions and local hands-on activities. This is just one such story.

Kids’ Food BasketAccording to the Kids’ Food Basket (KFB)

Web site, 14 percent of households with childrenunder 18 live in poverty in Kent County,Michigan. The federal school program, whichprovides breakfast and lunch to children in need,supplies approximately 1,000 calories a day forthese children. Unfortunately, many of these children do not have access to an evening meal,leaving them at a nutritional disadvantage of 800to 1000 calories (roughly half of their dailyrequired caloric intake). The end result of thelack of proper nutrition is children who have difficulty attending school and learning.

KFB was founded by Mary K. Hoodhood in2001 in Grand Rapids, Michigan, to address theneed for evening meals for children in poverty.KFB started providing bag dinners for 125 children from three schools. Those “sack suppers”were prepared in a church basement by volunteers. Currently, KFB is providing 1,750meals to 18 elementary schools in Kent County,

where 80 percent or more students live at thepoverty level. Clearly a need was there, and KFBwas filling it.

KFB meets this mission with an average of 75volunteers from the community each day, and hasan annual budget of $820,000, with administrativecosts making up less than 12 percent of the totalbudget. In fact, KFB had grown to the pointwhere it was considering moving to a largerspace. They believed they could do even more ifthey could find a way to expand without breaking the budget.

Enter AmwayI first got the idea of using lean to help

nonprofit organizations (NPOs) when I saw anewspaper article about Hope Network (a GrandRapids-based organization founded to empowerpeople with disabilities and disadvantages) moving to larger premises. It simply occurred tome that with lean they could increase their productivity, allowing them to be more cost effective and do more with the resources (volunteers) and funding they have. Followingthe lean principle of taking action, I, along withAmway’s Corporate Citizenship group, set up alean overview for representatives from eight areaNPOs in late 2008. Following this, and inresponse to their interest, we conducted a one-day “Understanding Lean” class, which was ahigh-level look at lean—what it is and what itdoes.

This outreach effort, which was inspired by asimple newspaper article, led to Amway’s involvement with KFB. With Marcia Carbinesand Steve Sweers of Amway facilitating and withlean volunteers from Amway’s Home Tech andCosmetics plants, KFB undertook a kaizen eventto try to improve their processes to gain morefrom existing resources, with the ultimate goal ofbeing able to help even more children.

8 Managing Times | Q4.09www.managingtimes.com

Amway and Kids’ Food Basket: Giving Back Using Lean PrinciplesChris Wilson, Operational Excellence Deployment Champion/Director, Amway

–––––––––––––––––––––––––––––

“ Thanks to the efficiencies

that this project team from

Amway created for KFB, we will

have the ability to grow our

critical services by 30 percent this

fiscal year. Because of Amway’s

efforts, hundreds more children

in Kent County won’t eat lunch

as their last meal of the day.

”— Bridget Clark Whitney,

Executive Director, Kids' Food Basket

–––––––––––––––––––––––––––––

SPEC

IAL

FEA

TUR

E

The TrainingBefore diving right in to an actual kaizen event,

the KFB team underwent training in lean principles and kaizen. To simulate KFB’s bagmeal production process, the training event usedthe assembly of Mr. Potato Head® toys.

The scope and objectives of the Mr. PotatoHead kaizen training event were to create a continuous-flow process, establish assembler standard work, establish line-side supply, andimprove output by 25 to 50 percent.

The team looked at established procedures—abatch and push process—and calculated leadtime, travel distances, quality defects, and work inprocess (WIP) inventory. They discovered a highlevel of defects and a WIP inventory of 315pieces. A number of issues were identified,including lack of standard work, wasted time,clutter, and parts not clearly marked. The teamthen came up with five best ideas for improvingthe process. The next step was to implementthose ideas following lean principles. Making thechanges outlined above led to a decrease in leadtime from 54 seconds per unit to 10 seconds perunit. Travel distance was decreased from 5,200feet to 20 feet. Quality was improved to 100 percent and WIP was reduced to 0. This was aclear object lesson in what kaizen could do.

The Main EventThe team then put its new-found lean

knowledge and skills to work addressing themeal-assembly process. Following the steps theyhad learned during kaizen training, they chose theassembly process for one school, CongressElementary, and identified process issues and thechanges needed to address them. Among theissues were clutter; lack of space and organization;excessive inventories; wasted time and motion, aswell as interrupted flow and lots of reaching andbending; assembly table height too low; mealitems difficult to find; and no obvious workinstructions.

To address these problems, the team suggesteda one-piece flow with a “plan for every ‘part’” ofthe meal that would go in the lunch bag, a totalof nine items per bag. During this phase of theevent, the team also established an 11-step standard work protocol. They determined thatmeal assemblers would work from one side of theassembly table, with line-side supply coming infrom the opposite side and a pack-out bin capable of holding 20 meals at the end of thetable. With this set up, the assemblers averaged4.5 seconds to prepare each meal; packing the105 meals intended for Congress Elementaryrequired just 8 minutes.

The time savings obtained with the newprocess was astounding. The original processrequired 41 seconds per meal, which meansassemblers were able to package 88 meals perhour. Reducing the time to 4.5 seconds per mealmeant that 800 meals could be packed everyhour—a ten-fold improvement over the oldassembly process! Not only did this mean a timesavings for volunteers, but it also meant that KFBcould potentially serve many more children without having to move into a larger space orrequiring additional volunteers.

Going ForwardFor the near-term, the meal assembly cell that

was created during this kaizen event will be dedicated to producing meals for CongressElementary. The team expects that when the celloperates with 11 work stations, assembling mealsfor Congress Elementary will take less than 10minutes.

Amway’s team members agreed to continuetheir support of KFB by offering their knowledge,skills, and experience to help further refine theCongress School Assembly Cell by using Quixx-Smart structures and other enabling materials toenhance KFB’s ability to assemble just-in-time.

Since the event, several of the Amway teammembers made an assembly table based on what

was learned during the kaizen event. The tablewas delivered to KFB, where volunteers had someimprovement suggestions, and the Amway teamis now making modifications based on those suggestions. Amway’s cell production team modifiedthe original assembly table, incorporating KFB’simprovements and made 3 additional tables,thereby completing the meal production cell.

I think the most spectacular outcome of thelean work we did is not just the incredibleincrease in throughput, but that by doing thisalong with other lean improvements KFB is ableto stay where they are. Now not only can theyoperate in the space they have, they can also seriously consider increasing the number of sacksuppers they produce, depending on food donations of course.

Bridget Clark Whitney, KFB’s executive direc-tor, says, “We are truly grateful to the Amwaycommunity for contributing their expertise andconsequently becoming a very instrumental partof our growth. As KFB is responding to a previously unmet need in the community, andgiven the economic climate in Michigan, it isimperative that KFB continues to expand ourservices for the Kent County community. KFB iscurrently serving food-insecure children in 18schools; however, we have 15 schools remainingon our waiting list for meal services. Thanks tothe efficiencies that this project team fromAmway created for KFB, we will have the abilityto grow our critical services by 30 percent this fiscal year. Because of Amway’s efforts, hundredsmore children in Kent County won’t eat lunch astheir last meal of the day.”

The Kids’ Food Basket Project is just oneexample of how corporations can give hope andassistance to people and communities in needsimply by supplying their lean expertise to helpoutreach organizations do what they do betterand with less.


9


TEC

H T

ALK

Routing standardization is a toolemployed by organizations in need of aproduct or process family focus; it worksparticularly well in organizations with high-variety, low-volume processes and createsflow where none existed before. Unlike cellular manufacturing in the 1980s and1990s, routing standardization uses thekaizen breakthrough methodology to formthe product/process families; assign theequipment; and develop the takt time,staffing, and capacity of the cell.

Product family cells are based on processsimilarities, not end-item or geometry, andusing such cells enables an organization tofocus its factory and improve performanceby creating small, manageable work areas.

The biggest impediment to starting onthis journey is understanding how to begin.The routing standardization process has several steps:

• analyzing part quantities• analyzing the routing of each process• grouping routings• simplifying process routings• calculating takt time• assigning equipment• developing operator and machine cycle

times• analyzing process capacity• developing potential layouts• developing an implementation plan

Part Quantity AnalysisThe first step is the part quantity analysis,

which allows the team to start to understandthe scope of the project and start makingdecisions about the method that will be usedto work on the product/process groupings.The part quantity analysis is used to viewthe part numbers that represent 80 percentof the total volume and place those intoproduct families. Every part must be placed;the thought process is that if you find ahome for the part numbers that represent 80percent of the volume, then the rest of thepart numbers will most likely fit into one ofthose families.

Process AnalysisThe second step is to analyze the process.

In order to reveal similar process routings,you need to understand the level at which toanalyze the process. You could have turn-

ing–milling–deburr or N/C turning–N/Cmilling–deburr, or going into even moredepth, Mazak 6 Horizontal N/Cturning–Mitsui 5 Vertical N/Cmilling–brush Deburr–hand deburr. All arecorrect, but the more specific you get withthe machine group categories the more difficult it will be to have similar productfamilies drop out of the process. At the sametime, you must separate the machine groupsinto capability in order for all the partsselected for a product family to be able to berun in a cell.

Group RoutingsThe third step in the process is to group

similar process routings. There are severalmethods to do this, including using spreadsheets or strips on a wall.

If you have 300 part numbers to segregateinto part families, writing out the routingson pieces of paper, cutting them into strips,and placing them on the wall will allow theteam to get a picture of the cells. If you have10,000 part numbers, strips will not be aseffective when trying to complete theprocess during one week.

In the case of many part numbers, thebest approach is to use a coded spreadsheetconstructed in Excel. Although a spreadsheetis helpful for handling large numbers ofparts, this method also has some shortcomingsbecause it will be more difficult for theentire team to assimilate the data and thecells will not be as obvious to the team.

Simplify Process RoutingsThe fourth step is to simplify the routings.

Often routings for similar part numbers aredifferent simply based on who created therouting, and when. Simple steps like re-arranging the order of processing, eliminat-ing redundant operations, and splitting orcombining across CNC work centers canhave a profound impact on managing thecomplexity of the business.

This is also the step were you start lookingat the “cats and dogs” (routings that do notfit the cells as defined in step three). At thisstep, you may be combining cells or addingprocesses to cells. This step and the followingfour steps are usually worked togetherbecause they commonly have an effect oneach other.

TECHTALK

Would you like to increase productivity by 50 percent,

increase the ability to be ontime with components to

close to 100 percent, reduce

your need for floor space,

improve quality dramati-

cally, reduce lead-timeby 70 percent to 80 percent,

and reduce your inventorysubstantially?

Then routing standardization

is the tool for you.

Routing StandardizationBob O’Briant, TBM Senior Management Consultant


The fifth step is to develop a takt time foreach of the new cells. This is a small step,but an important one if the team is to beginto understand each cell.

Assign EquipmentThe sixth step is to assign the appropriate

equipment to each cell. This is where thetrouble begins. Several issues can arise at thispoint: not having enough machines, havingmachines that are in a poor state of operation,and not having the correct machines.

At this point, understanding the equip-ment in the operation becomes paramount.Often companies will color code theirequipment, red–yellow–green to indicate theprocess capability or the reliability of theequipment. At this step, the team must becreative in solving each issue as it comes up.The last resort is to share a machine. Thisstep is closely related to the next two steps inthe process.

Develop Operating Cycle TimesThe seventh step in the process is to

understand the operator cycle times andmachine cycle times. Operator cycle timesshould be measured, if possible, but sometimes you must use educated guesses inorder to move forward. It’s best if themachine cycle times are based on actual dataas well, but often educated guesses are usedhere too.

Guard against using tape times in place ofmachine cycle times—these are almost neveraccurate. At this point it may become obvious that there can be many machinecycle times, and it’s tempting to use weightedaverage cycle times as a guide. Avoid this ifpossible, because for product to flowsmoothly through the cells, the manual timeand the automatic time for every part, number must be below the takt time; otherwise, you will have to use mixed-modellogic to manage the flow, and this is not themost desirable method. The automatic cycletime on machines can almost always bereduced—often substantially. Cycle timeswill be used to calculate the process capacityof each cell, so this is a very important stepto insure that each cell can perform asrequired.

Develop Machine Cycle TimesThe eighth step in the process is to calcu-

late the process capacity for each of the cellsusing the equipment and machine-cycle-timedata collected in the previous step. You mayhave to make adjustments at this time to theequipment or products if there isn’t enoughcapacity in the cell for the product familyassigned to it.

Target StaffingOnce all the parts are assigned to cells and

the manual and automatic times have beenbalanced, calculating the target staffing ispossible. Staffing requirements should bebased on the load–unload–inspection/gaugetime and not on the set-up times. Do not besurprised if direct productivity doubles; thisis very common and although it can seemunbelievable to teams, trust the numbers.The process capacity sheet can also be usedto calculate the lowest lot size in days thatcan run through the process without run-ning out of capacity, and if you do not likethe answer, then targets for setup reductioncan be set.

Develop Potential LayoutOnce you have the cell organized to meet

takt time, have the correct process capacity,and the team understands the staffingrequired you are ready for the ninth step inthe process: developing suitable layouts foreach of the cells identified. Scale foam blocksare helpful during this process, but full-sizecardboard models work best.

Things that must be taken into accountare machines that require a foundation orother special needs. The team needs to assessthe need for each foundation—in mostcases, the number of machines that require afoundation is small, and some companiesjust have a culture of putting a foundationunder all machines. Why waste the funds?

Implement the PlanThe last step in the process is to develop

an implementation plan. Many things mustbe taken into account for the implementationplan to be effective, including the overallflow of the building, any foundationsrequired, and any special needs of an individual cell, as well as any precedents ofone machine needing to move before another can move.

There are pitfalls to the process that youmust also take into account. Not every partfits into a family grouping easily, and suchparts can be dealt with in one of severalways: change the routing, change the engineering, or move the part to a supplier.The natural reaction is to create a “generalcell,” but this can be a mistake for many reasons. Issues with shared resources must bedealt with to proceed with product familycells. The last pitfall to consider is the cultural changes required. Issues always arisewhen fewer employees are needed, especiallyregarding what the organization is going todo with the excess operators. Another issue isthe need to have operators operate severalmachines instead of just one.

A Powerful ToolThe process steps for routing standardiza-

tion are logical and powerful. They allow theorganization to focus their activities on smallmanageable sections of the business; linkprocesses together; and manage resourcessuch as manpower, inventory, and floorspace. Each step plays an important part inthe organization’s transition to cellular man-ufacturing. Routing standardization alsoapplies lean manufacturing techniques to theorganization throughout the process.

The benefits to the employees include theexpansion of their skill sets and job securitythrough better performance of the organiza-tion. The tight focus of a product cell giveseach employee a sense of pride and belonging.

Routing standardization is a powerful toolfor an organization that is trying to becomemore effective and profitable. By using rout-ing standardization, an organization canhope to improve its productivity, reduceinventory, reduce lead-time, and improve theavailability of their product. By followingthe ten steps, an organization can becomemore agile and responsive to its customers,and that’s a formula for success.


Mel Haught, who has played a leader-ship role at Pella since joining the companyas vice president of manufacturing in 1991,and who became the company’s presidentand CEO in 2002, is planning to retire atthe end of November. Pella, a manufacturerof quality windows, patio doors, and entrydoor systems, is headquartered in Pella,Iowa, where the company was founded 84years ago.

I first met Mel when he attended ourKaizen Breakthrough Experience workshop,along with Pella’s CFO and vice president ofengineering. He and his colleagues were soimpressed with the continuous improvementprocess that within just a month theylaunched their own lean transformation withthe help of TBM and with absolute commitment. Our partnership has lasted for15 years and is still going strong. I considerMel to be one of the top leaders in America.

Haught not only produced incrediblyconsistent top line, bottom line, and cashflow results for Pella, but through his vision-ary leadership, he involved and empoweredemployees at all levels of the organization.As a result Pella has over many years beenconsistently voted by its employees to be one

of the top 100 companies to work for inAmerica in Fortune magazine’s survey.

Haught’s commitment to lean manufac-turing is probably his most important legacyat Pella. When he arrived at the company,Haught recognized that in order to grow thebusiness Pella needed a much broader appeal.The company had done very well in its high-end niche market, but Haught realized thatfor the company to grow, improvementswere needed. And those improvements couldbe brought about through lean and kaizen.

Haught became a driving force behind

redefining what Pella stood for in order torespond to the market and to customerneeds. He has credited the company’s continuous improvement efforts with being

a vital element in its transformation from aniche-company to a one-stop shop for all ofa home owner’s or builder’s quality windowand door needs. Says TBM’s Dan Sullivan,“Mel often had a grin on his face when wewere doing breakthrough work. He had saidto me one time, ‘I love it when we areuncomfortable ....’ His quiet demeanor andconfidence gave comfort to others as weengaged in aggressive change through theyears.”

And he didn’t stop with Pella. Haughthas had a very open door policy when itcomes to sharing Pella’s journey with others—whether those others were companies juststarting on a lean transformation or seasonedpractitioners seeking to benchmark and perhaps find ways to raise the bar. Pella hasbeen an amazing partner to TBM, willing to share its story and offer wisdom gainedthrough its own transformation and to be alearning leader to other TBM client companies.

Today, Pella is committed to incorporat-ing new technologies, increasing productivity,and practicing environmental stewardship,lean tenets that were largely brought tofruition under Haught’s leadership. With a

strong foundation in continuous improve-ment and an active, engaged employee base, Haught can retire knowing that the company is poised to continue to grow andinnovate, and to remain the top company inits market.

LEANCHAMPIONS Mel Haught: Pella’s Visionary LeaderAnand Sharma, Co-founder and CEO, TBM Consulting Group

efficiency improvement over our 2008 performance on all the lines with a count-down clock and a 5.6 percent improvementfor those without a countdown clock.

Bottom LineWell-written standard work coupled with

the use of a countdown clock or pace systemand with the appropriate support will delivera culture of “Takt Time Every Time”. If youhave a Takt Time Every Time culture youwill create the following:

• Safe work environment: focus on the standards—injuries happen when team members deviate from standard work.

• Customer satisfaction: focus on standards along with a controlled pace—team members aren’t rushing andhave time to look at the product to helpensure it is defect-free.

• Productivity improvements: focus on abnormality elimination or MDI—standard work creates the most efficient way to perform the work and pace will expose the small, but recurring abnormalities.

The combination of standard work and some form of pace can deliver outstanding results, but it is important that the team is engagedand understands the true purpose ofthe tools. Most importantly, the team must not view them simply as tools, but more as a “way of life.”The two tools used in conjunction will help deliver positive results for your business.


What Is Standard Work?Standard work is how Pella Corporation per-forms work in a prescribed sequence of stepswith an associated time for each step. Thetotal of each step will add up to a cycle time(CT) for each station within a particularwork area or assembly line. Standard workmust be designed to support takt time (TT).This seems simple, yet poses many chal-lenges.

What Is Pace?Pace is the process of controlling the flow

of an assembly line or assembly area. Pacingmethods are numerous and can range from amoving line, to a control at each station thatwill not move the product to the next sta-tion until the TT has been satisfied, to asimple countdown clock at the pack-out sta-tion with an audible andon to indicate thestart and finish of a cycle. A countdownclock is a cost-effective approach to pac-ing—or pulsing as some may call it—butone of the more challenging to coach andmaintain.

At Pella Corporation’s GettysburgOperations, we use the countdown clock fora number of reasons. We implemented aclock on an assembly line for less than $500while reinforcing the culture of “TT everytime.” Countdown clock implementationrequires extensive training of the depart-ment’s leadership team along with shop floorteam members, but once everyone is trainedand appropriate follow-through is conducted,you will achieve a high-performing teamenvironment, focused on abnormality iden-tification and elimination.

Can You Have One without the Other?You can, but your success rate goes down

significantly if you don’t incorporate the twotogether, because they are enablers of oneanother. The team must have the disciplineto follow the standard work as written,because the success of one station dependson the standard work of the pre- and pro-ceeding stations. If one person is out of syncwith their standard work, there will be atrickle-down effect throughout the entireline, resulting in poor flow or work-in-process (WIP) imbalances. Pace will give the

leadership team visibility of any CT varia-tions that may exist due to lack of standardwork adherence or any other abnormality.Along with well-written standard work, youmust have an informed team, the correctsupport structure and processes, and aresponsive leadership team.

“The pace clock is an effective tool usedto maintain a consistent flow on the windowassembly line and also helps operators meettakt time every time,” says Lyle Griffe, aPella Gettysburg Operations Double Hung 2team member. As with any other lean tool ittakes commitment, support, and a sense ofurgency to make it successful.

So What Are the Benefits?Implementing pace is difficult and

requires 100 pecent commitment at all levelsof the organization. So why invest in some-thing like this? If you are a manager or leadof a line or department, the pace clock givesyou visual management, that quickly allowsyou to survey your areas performance.

It is also an aid to Pella team members.Judy Wickline, Pella Double Hung 4 depart-ment manager says, “Team members alertthe manager or lead of any CT issues withstandard work, so the manager/lead canwork on implementing a solution. It alsoprovides a trigger for the team member toreference when the pace horn goes off, sothey know if they are ahead or behind intheir standard work.”

Using pace in the workplace allows teammembers to identify a bottle neck within acouple of seconds, which then permitsresponse in a timely manner. A pace clock isan enabler to managing for daily improve-ment (MDI). When an abnormality occurs,pace allows us to respond with a short-termsolution (save a unit mentality) and then puta long-term solution (eliminate the issue) inplace by tracking and executing a solutionbased on the appropriate data. Pace makesthose little abnormalities that may onlyaccount for 4 or 5 seconds an incident butthat show up multiple times a day moreobvious. Without pace it would be next toimpossible to identify them. This behaviorcreates long-term sustainable growth. Onaverage we have seen a 13 percent labor

FIELDNOTEStandard Work and Pace at Pella CorporationTravis Jansen, Pella Corporation, Gettysburg Operations

LEA

N C

HA

MPI

ON

S, F

IELD

NO

TE

TBM

Co

nsu

ltin

g G

rou

p, I

nc.

44

00 B

en F

ran

klin

Blv

d.

Du

rham

, NC

277

04w

ww

.tb

mcg

.co

m

PRES

OR

TED

FIR

ST C

LASS

MA

ILU

S PO

STA

GE

PAID

RA

LEIG

H, N

CPE

RM

IT #

2483

Corporate HeadquartersDurham, North Carolina

1.800.438.5535

AustraliaMelbourne, Victoria

03.9521.8654

BrazilSão Paulo

55.11.5051.7490

ChinaPudong, Shanghai

86.21.6888.6671

FranceLyon

33.472.91.32.88

GermanyHeidelberg

49 (0) 6221.825.835

IndiaGurgaon

91.124.437.5995

MexicoMonterrey

52.81.50.00.91.36

SwitzerlandGeneva

41.22.710.77.70

United KingdomDerby

44.1332.367378

TBM LeanSigma® Institute 2009 Schedule Highlights

MANAGINGQ4.09

TIMES

Leveraging LeanSigma for Growth An interactive two-day workshop for senior manufacturing executives whowish to create a clear, concise and compelling vision and leadershiproadmap for business transformation. This workshop focuses on using thepowerful and proven tools of LeanSigma, the Kaizen Breakthroughmethodology, and Value Innovation to create unique competitive advantagesand a high-performance culture for exceptional growth in sales and earnings.

•February 24-25, 2010 in Durham, NC•June 23-24, 2010 in Durham, NC

Go to www.tbmcg.com/llg for more information.

CEO Boot Camp ______________________ What is CEO Lean Boot Camp?An intimate, one-on-one opportunity to meet and learn from leading CEOpractitioners who aggressively leverage lean as a tool for market dominance.

Spend three days meeting directly with CEOs from leading companies whohave led their organizations through a lean transformation. Tour their facilities and take advantage of the opportunity to meet directly with CEOsand senior site and division leaders.

TBM executives, Anand Sharma, CEO, and Bill Schwartz, Executive VicePresident, will host CEO Lean Boot Camp. For the past several years, bothAnand and Bill have worked closely with the host CEOs throughout theirlean transformation.

•December 8-10, 2009, touring various companies in New York.Go to www.tbmcg.com/ceo for more information.

Lean Tool Kit ____________ A five-day workshop covering lean tools and how they can be integratedas business strategies to achieve improved operational results. This courseis the first class of the multi-week Lean Certification curriculum as well.

•November 2-6, 2009 - Durham, NC •February 1-5, 2010 - Durham, NC •May 3-7, 2010 - Durham, NC •August 9-13, 2010 - Durham, NC •November 8-12, 2010 - Durham, NC

Go to www.tbmcg.com/ltk for more information.

LeanSigma Black Belt Certification________________ Advanced training to drive high-impact improvement.Advanced training from the TBM LeanSigma Institute. No other programprovides full certification, together with sigma kaizen training – giving youthe toolset for superior results, in a fraction of the time.

•Define/Measure/Analyze: March 15-19, 2010 in Durham, NC•Event Week: April 12-16, 2010 at Host TBD•Analyze/Improve/Control: May 10-14, 2010 in Durham, NC•Advanced LeanSigma Skills: June 7-11, 2010 in Durham, NC

Go to www.tbmcg.com/lsbb for more information.

LeanSigma Green Belt Certification________________ Add Lean and Six Sigma improvement tools to your skill set.No other program provides full certification, together with sigma kaizentraining – giving you the toolset for superior results, in a fraction of thenormal time.

•Define/Measure/Analyze: March 15-19, 2010 in Durham, NC•Event Week: April 12-16, 2010 at Host TBD•Analyze/Improve/Control: May 10-14, 2010 in Durham, NC

Go to www.tbmcg.com/lsgb for more information.

Sustaining Lean Results________________ __________ Audit, report and sustain kaizen results.TBM’s Sustaining Lean Results workshop will give you strategies, tools andskills required to preserve the returns of your continuous improvement program.

• January 25-29, 2010 in Durham, NC•September 20-24, 2010 in Durham, NC

Go to www.tbmcg.com/slr for more information.

Documents

ConMed Managing Times, Q4 2009