B7 STEEL YARD AWO July 22 – July 26, 2013

Team Leader: Chris French Area Leader: Gerald Beuvelet Tech Resource: Sarah Chuplis

Safely, Deliver On-Time, in a Cost Competitive Manner

SAFETY v  Begin and End with Safety.

v  No Task or Part is worth risking the well-being of ourselves and team.

v  Focus Efforts to Improve the Safety of our Work Environment.

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• Utilize Talent & Experience

• Standardize

• Develop Process

• Track Progress

• Challenge What You “Know”

SAW AREA DELIVERY PERFORMANCE

KEY DIRECTIVES

VALUE STREAM MAP

ROOT CAUSE ANALYSIS

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Team Area Operators Business Leaders MTA’s Purchasing Flow Leaders Lean Leaders Co-Ops & Interns

Target Areas Raw Material Order Process Visual Inventory Standard Work

Current Process does not support efficient Inventory Replenishment in the Steel Yard

nor does it provide clear instructions for Saw Area Material Presentation

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TEAM 1 - Order Process and Standard Work Liam Clapp - Kevin Weschler - Melanie Stetson - Roger Estok

Ron Nowacinski - Doug Larson Current State: •  Demand Notice to Receiving Material 4-6 business days •  14 Unit Conversions in Current Order Process •  Undefined Standard Work

Goals: •  Develop Process for Same Day Order Placement •  Simplify Standard Material Order Process & Delivery

Schedule •  Create Standard Work for Steel Yard Team

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Value Stream Map

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4 Hours

Before Kaizen After Kaizen

Operation Problem Actions Taken Results

Demand Notice to Receiving Materials = 4-6 business days

Empower Steel Yard EE to place orders, Increased order deadline by 1 hour

4-6 business days reduced to 2-3 business days

Order Process

36 Hours

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Before Kaizen After Kaizen

Operation Problem Actions Taken Results

Job book comes out of CAS Parts Needed

Order sheet with job book Parts Needed

Steel yard operator calculates pieces of bar stock needed to fulfill job

Pieces of Bar Stock Steel yard operator calculates weight of

needed pieces of bar stock Weight

Steel yard operator writes needed material on order sheet if not on shelf

Pieces of Bar Stock and Weight

MTA enters pieces of bar stock for bar/rod/angle into spreadsheet to get weight

Weight

MTA enters weight into CAS for bar/angle/rod Weight

MTA emails supplier bar/angle/rod order Weight

bar/angle/rod supplier converts weight to pieces of bar stock. Ajusts to even pieces of bar stock

Pieces of Bar Stock

MTA enters pieces of bar stock for tube into spreadsheet to get total

length Total Length

MTA emails tube order to buyer Total Length

Buyer converts to weight and adjusts tube order as nueeded

Weight Buyer enters weight into CAS for

tube Weight

Buyer emails supplier tube order Weight

Tube supplier converts weight to pieces of bar stock Pieces of Bar Stock

MTA writes what is ordered on order bill and gives back to steel yard operator

Pieces of Bar Stock and Weight

Delivery notice Pieces of Bar Stock

Job book comes out of no material drawer Parts Needed

Steel yard operator determines pieces of bar stock needed to take to saw

Pieces of Bar Stock

Saw operator cuts up pieces of bar stock into parts needed

Parts Needed

Job book comes out of CAS Parts Needed

Order sheet with job book Parts Needed

Steel yard operator calculates # of sticks needed to fulfill job # of Sticks

Steel yard operator calculates weight of # of sticks needed for bar/angle/rod Weight

Steel yard operator enters order into CAS and emails the supplier Weight

Bar/angle/rod supplier fills order for weight based on weight per unit length Weight

Steel yard operator receives material, checking invoice against order quantity in CAS

Weight

Steel yard operator calculates total length of # of sticks needed for tube Total Length

Steel yard operator enters order into CAS and emails the supplier Total Length

Tube supplier fills order for total length based on standard length of materials

Total Length

Steel yard operator receives material, checking invoice against order quantity in CAS

Total Length

Steel yard operator determines which jobs to move to the saw and moves the material

# of Sticks

Saw operator cuts up sticks into parts needed Parts Needed

Frequency of Unit Conversions leads to Order

Quantity Errors

SIMPLIFY

Reduced number of conversions by 60%

Unit of measure

conversions

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Before Kaizen After Kaizen

Operation Problem Actions Taken Results

Poorly defined Steel Yard EE Requirements

Create Standard Work Package

Standardized Roles and Responsibilities, Defined Work Pulse,

New EE Training Guide

Standard Work

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TEAM 1 RESULTS

Goal: Develop Process for Same Day Order Placement - Empowered Steel Yard EE, Order to Vendor < 4

hrs.

Goal: Simplify Standard Order Process & Delivery Schedule

- Reduced frequency of Unit Conversions

- Cut Order Process Steps from 6 to 2

- Establish Delivery Pulse with Vendors

Goal: Create Standard Work for Steel Yard Team - Defined Roles and Responsibilities

- Established Daily Pulse

- Developed Training Manual

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Team 1 Kaizen Newspaper Project Description Owner Due Date Notes

Train current steel yard operators Larson/Estok 07/25/13

Train new first shift steel yard operator Larson/Estok 08/30/13 Will begin working after shutdown

Create process for maintaining and updating standard work French 08/30/13

Ensure delivery window compliance & make windows narrower Stetson 09/27/13 WIP

Change unit of measure in CAS for ordering bar and angle from lbs to ft

Long term project that may require another AWO

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Tyler Anderson - Jesse Taylor - Nigel Corea Ron Mozdi - Eric Suroviec– Daniel Reynolds

TEAM 2 - Inventory Organization and Management

Current State: •  No standardized labeling or organization system •  Undefined inventory quantities •  Obsolete material dispersed throughout racks Goals: •  Define standard inventory and reduce non-standard $ by

25% •  Organize and label steel racks •  Establish visual inventory management system and create

process to sustain inventory management

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Value Stream Map

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BEFORE AFTER

PROBLEM

Raw material is not classified or standardized

CORRECTIVE ACTIONS

Created ABC list of steel yard raw materials through

data analysis

RESULTS

Understanding of what items should always be

on stock vs. order as needed

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BEFORE AFTER

PROBLEM

Minimal rack organization

CORRECTIVE ACTIONS

Developed and implemented a layout for raw material among the

five racks

RESULTS

Labeled racks; Intuitive layout of ABC items for

better material flow

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BEFORE AFTER

PROBLEM

Lack of inventory management

CORRECTIVE ACTIONS

Visual inventory management system hand-

in-hand with labeling

RESULTS

Min, max, and reorder quantity for all A-items

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BEFORE

PROBLEM

No standard work for managing inventory flow

CORRECTIVE ACTIONS

Developed a practical SW and an information board

RESULTS Visual management

process, defined order quantities, reduced

double orders

AFTER

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TEAM 1 RESULTS

Goal: Define Standard Inventory & Reduce Non-Standard Inventory $ by 25%

•  All Raw Material Defined, Plan Established for Non-Standard Inventory

Goal: Organize and Label Racks •  Standard and Obsolete Material identified on shelf

•  Location Established for All Raw Material

•  Labels Designed for Identifying Parts

Goal: Create Process for Visually Managing Inventory •  Set Min/Max Using Visual Cues for Standard

Inventory

•  Defined Sustainable SW for Managing Inventory

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Team #2 Kaizen Newspaper

Project Description Owner Due Date Notes

Completely Organize Racks Mozdi/Nowacinski FW 33 After Shutdown

Finish Labeling Racks Corea FW 31

Implement Visual Inventory Management Taylor FW 31

Finalize Standard Work Anderson FW 31

Assemble Information Board French FW 34

Take Action on C-Items Estok/Nowacinski FW 35 WIP

Add Locations of Materials to CAS Estok/Chuplis FW 35

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LESSONS LEARNED

•  “A place for everything and everything in its

place” is cliché but significant.

•  Simple steps have big results.

•  Stay within the Scope of Project

•  Team Engagement is critical to developing a

culture of Continuous Improvement

•  Impact of Effective Standard Work on Quality,

Productivity, and Sustainability

B7 Steel Yard AWO

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5S IMPLEMENTATION

•  BASELINE AUDIT = 15 •  2 OSHA VIOLATIONS CORRECTED •  2 SAFETY CONCERNS IDENTIFIED •  RED TAG EVENT •  5S STANDARD WORK •  C.I. PROJECTS SCHEDULED

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4/27/15 THANK YOU!