Bergey Improvements Overview
George Chao, Regional manager
All Content © Copyright 2015, Manex Consulting
Purpose
• Bergey faces continuing pressures to reduce costs, reduce lead times and
continue to provide quality, high value products to its customer.
• The task is “how do we incorporate and implement a Continuous
Improvement Methodology” throughout the company
• The answer is to get the leadership educated in the benefits of a Lean
Enterprise approach to running the business. Lean is a “top down driven
program”
• Once the leadership is behind this approach, we will educate the workforce
and we teach and implement the concepts along with your team:
• Focused 5S training
• Focused Practical Problem Solving Kaizen Event
All Content © Copyright 2015, Manex Consulting
Manex
(The Corporation for Manufacturing Excellence)
• Since 1995, Manex has provided a broad array of proven solutions and
resources exclusively to manufacturers, distributors, and their supply
chains, enabling them to compete on a global scale
• Manex uses a holistic and proven approach, from strategy to
implementation, to impact all facets of business performance
• Services areas include Strategy, People, Process and Performance
• Results: growth, profitability, and competitive advantage
• Manex is one of 60 NIST/MEP Centers throughout the US. We are here to
help manufacturers, distributors, and their supply chains grow profitably
All Content © Copyright 2015, Manex Consulting
3
Manex
(cont’d)
• Focused on results and delivering Rapid Return On Investment to position
clients for long-term success: Typical result is 6:1. Spend a dollar get six
back. Better than the bank
• Affiliate of the National Institute of Standards and Technology (NIST)
Manufacturing Extension Partnership (MEP) program. NIST MEP
frequently cited as among the country’s most effective and successful
public-private partnerships
• Leading Consulting Firms (such as Booz Allen Hamilton) cited NIST MEP as a
significant factor in mastering innovation and in company growth and
success
• Value Manex provides to clients is measured by NIST to ensure we meet
and exceed clients’ business objectives
All Content © Copyright 2015, Manex Consulting
4
Manex Approach
Phase 1: Lean
Manufacturing
Training with
Simulation
Phase 2:
Value Stream Map
Phase 3:6S
Training and
Kaizen events
 VSM Overview




 VSM Program for Tower
Sections
 1 Hands on Demonstration of One
Piece Flow; Executive team and SKU
workforce
 Creation of mock P and L for financial
impact
Phase 4: Practical
Problem Solving- 5
day Kaizen Event
1-5 day Kaizen Events with Teams
Standard work
In process inspection
Shop area focused
 6S Training: 4 hours’
• 1 Hands on 6S event
All Content © Copyright 2015, Manex Consulting
5
Lean Manufacturing with Simulation
Agenda
Introductions
Lean Manufacturing
Lean Services
History & Culture
Principles
Obstacles
Benefits & Results
Simulation Round 1
Leadership Role & Behaviors
Eliminating Waste
5S Principles
Standard Work
Simulation Round 2
Pull & Flow
Total Productive Maintenance
Set-up Reduction
Value Stream Mapping & Kaizen
Practical Problem Solving
Simulation Round 3
Lunch
All Content © Copyright 2015, Manex Consulting
2
Typical Simulation Pictures
All Content © Copyright 2015, Manex Consulting
7
Simulation Profit & Loss
All Content © Copyright 2015, Manex Consulting
Manex Approach
Phase 1: Lean
Manufacturing
Training with
Simulation
Phase 2:
Value Stream Map
Phase 3:6S
Training and
Kaizen events
 VSM Overview




 VSM Program for Tower
Sections
 1 Hands on Demonstration of One
Piece Flow; Executive team and SKU
workforce
 Creation of mock P and L for financial
impact
Phase 4: Practical
Problem Solving- 5
day Kaizen Event
1-5 day Kaizen Events with Teams
Standard work
In process inspection
Shop area focused
 6S Training: 4 hours’
• 1 Hands on 6S event
All Content © Copyright 2015, Manex Consulting
9
Manex Proposal
• Create a current state Value Stream Map to identify areas for
improvement.
• Need to have accurate cycle times for each operation so that the
bottleneck operation can be identified
• Current State VSM will show;
• Information flow
• Inventory between stations
• Non value added costs in the total process
• Customer demand
• Creates the road map for improvement
• Future state map is the Ideal state that we want to move the company
to.
• Need a team to do this.
All Content © Copyright 2015, Manex Consulting
Real life example: Original Layout
HAI - Current State Layout
Assy workbench 25
At all work benches: 1 ethernet drop
1 120 circuit
Test workbench 30
Inspection Station 4
Office
Phase 2 expansion
10 sq. ft.
6"
Recycle &
Shred Bin
Cabinet
Cabinet
VSDL
12
VISD
SCREENS
Quad
23 sq. ft.
14 sq. ft.
3
belt oven and small oven
Hot Air Reflow
Machine
Fridge
Eye wash
OPEN
OPEN
OPEN
OPEN
JAD
EMIL
DON
DANEL
Open
JIM
114 sq. ft.
TO SHIPPING
Super
Cart
RUTH
TAM
Thermotron
Super
Cart
RICK
4
“Depot 1”
3
2
17
3ph, 400Hz, 120V, 20A
outlet
1
9 sq. ft.
8'-0"
VMULT
Binford
3ph, 208V, 20A
17 sq. ft.
RAMIL
18
Cabinet
CCA MODULE TEST
8 ‘ between stations
Card Mechanical
Assembly
OPEN
CART
Rack
Binford
3ph, 208V, 20A
CART
17 sq. ft.
ROBERT
QA In
CART
CART
CART
CART
Dry Erase
Board
OPEN
Rack
Rack
1'-4"
8
CART
QA Out
MICHAEL
Rack
Wire
Rack
OPEN
OPEN
11
Rack
5
9
VMULT
“Depot
6”
OPEN
ERIC
SCC Bench
7
Tools
Cable work Cell
Cabinet
VBIM
“Depot 5”
Cabinet
12
Rack
11
CART
10MHz
Cabinet
VSYNTH
“Depot 4”
10
9 sq. ft.
CART
CART
CCA MODULE TEST
7 ‘ between stations
Rack
VBIM
“Depot 3”
OPEN
CART
13
VMPE
Wire
Rack
CART
Shred
Bin
Pat
CART
CART
CART
CART
OPEN
OPEN
SANG
SIMON
Julie
SCC Bench
Spray cool assembly
7' between rows
4'-4 3/16"
CART
CART
CART
CART
CART
Pat
Warren
ROMEO
Wire Rack
Cabinet
OPEN
CART
Freq
Cabinet
AATS Testing
Cabinet
6 sq. ft.
VIFD2 Test
“Depot 11”
Cabinet
Dry Erase
Board
BOBBI
VIFD2 Test
“Depot 12”
Dry
Era
se
Boa
rd
WIP
182 sq. ft.
2 Workstations to
accommodate
WIP
Need ethernet
drop and each
bench needs
power
OPEN
10'-10 5/8"
Rack
Binford
3ph, 208V, 20A
20 sq. ft.
RICK
11
Cabinets
VMULT TEST
“Depot 10”
Rack
VSDL
VMULT TEST
“Depot 9”
Cabinet
OVEN
Cabinets
CART
Flam
mabl
e
3 Workstations to
accommodate
Humi touch up
Min. Req.:
ethernet drop,
standard 120
power,
compressed air,
and one needs a
hood connection
CART
CART
Rack
Cabinet
CART
Cabinet
CART
MRB
VWPF
“Depot 8”
CART
15
QA
Hold
VPEM
Rack
14
4 desks
3 racks
1 cart
Stamping /
Part Marking
Step
Ladder
9 sq. ft.
FRED
3ph, 400Hz, 120V, 20A
outlet
3ph,60Hz 208V, 30A
outlet
OPEN
CART
16
Cabinet
CART
3ph, 400Hz, 120V, 20A
outlet
3ph,60Hz 208V, 30A
outlet
CART
9
9 sq. ft.
9 sq. ft.
ANNE
Occupancy – 6 max, 2 typical.
10 foot ceiling
Vapor Degreaser
230 V 3KW
Vapor Bath Tank
115 V 1.5KW
BSSE
3ph, 208V, 20A
20 sq. ft.
1 square = 2.5' in 33%
view
All Content © Copyright 2015, Manex Consulting
11
Future State Plant Layout
HAI – “CCAT” Layout
CART
CART
KIT
KIT
ELECTRICAL
AREA
DO
NOT
BLOCK
Assy workbench 25
At all work benches: 1 ethernet drop
1 120 circuit
CART
Test workbench 30
DO
NOT
BLOCK
CART
CART
KIT
CART
OVERFLOW
STAGING
&
CART
KITTING
WIP
New Assembly Bench
New QA/QC Bench
Inspection Station 4
KIT
KIT
KIT
CART
CART
CART
CART
HANGERS
Office
DO
NOT
BLOCK
CABINET
CABINET
SOILED
BIN
GOWNING
AREA
Phase 2 expansion
New Test Bench
10 sq. ft.
LOCKERS
KIT
HANGERS
CART
BENCH
LOCKERS
CART
Cabinet
DO
NOT
BLOCK
DO
NOT
BLOCK
DO
NOT
BLOCK
DO
NOT
BLOCK
Rack
Rack
DO DO
NOTNOT
BLOCK
BLOCK
4
3
2
DO
NOT
BLOCK
Rack
1
Cabinet
Card Mechanical
Assembly
CART
Cable work Cell or
Mechanical Assy
CART
PC
Cabinets
9 sq. ft.
Cable work Cell or
Mechanical Assy
CCA MODULE TEST
10 ‘ between stations
Cabinet
9 sq. ft.
DO
NOT
BLOCK
8
11
QA Out
CART
DO
NOT
BLOCK
Cabinet
3ph, 400Hz, 120V, 20A
outlet
DO
NOT
BLOCK
5
9
PC
Cabinets
CART
DO
NOT
BLOCK
DO
NOT
BLOCK
CART
7
Rack
QA In
10MHz
14'-1 1/2"
QA
Hold
72 sq. ft.
DO
NOT
BLOCK
VPEM
VSDL
DO
NOT
BLOCK
Cabinet
CART
CART
CART
CART
CART
CART
CART
CART
CART
CART
CART
1'-0"
12
“Depot 1”
3 Workstations to
accommodate
Humi touch up
Min. Req.:
ethernet drop,
standard 120
power,
compressed air,
and one needs a
hood connection
Flam
mabl
e
Occupancy – 6 max, 2 typical.
10 foot ceiling
DO
NOT
BLOCK
DESK
DESK
DESK
VMULT
“Depot
6”
DO
NOT
BLOCK
Test
Rework
Vapor Degreaser
230 V 3KW
Vapor Bath Tank
115 V 1.5KW
Thermotron
BSSE
3ph, 208V, 20A
20 sq. ft.
NEW
Step
Ladder
VMULT
TEST STAGING
WIP
Dry Erase
Board
VSYNTH
“Depot 4”
DO
NOT
BLOCK
Dry Erase Board
DO
NOT
BLOCK
Rack
Cabinet
Dry Erase Board
Cabinet
OVEN
DESK
CART
Cabinet
DO
NOT
BLOCK
DO
DO
NOT NOT
BLOCKBLOCK
DO
NOT
BLOCK
AATS Testing
Rack
15
Recycle &
Shred Bin
Cabinet
Cabinet
Rack
Rack
14
DO
NOT
BLOCK
11
VBIM
“Depot 3”
DO
NOT
BLOCK
DO
NOT
BLOCK
BinfordCabinet
3ph, 208V, 20A
6 sq. ft.
17 sq. ft.
Freq
3ph, 400Hz, 120V, 20A
outlet
3ph,60Hz 208V, 30A
outlet
Binford
3ph, 208V, 20A
20 sq. ft.
Rack
6'-2 3/16"
CART
17
ASSY
STAGING
WIP
Wire Rack
Cabinet
CART
Rack
DO
NOT
BLOCK
11'-3 1/4"
13
VMPE
CART
Wire
Rack
DO
NOT
BLOCK
16
NEW
9 sq. ft.
SCC BENCH
SCC BENCH
VBIM
“Depot 5”
9 sq. ft.
DO
NOT
BLOCK
Rack
Cabinet
Rack
DO
NOT
BLOCK
Cabinet
Binford
3ph, 208V, 20A
17 sq. ft.
Rack
Rack
FLOOR STOCK
WIP
VWPF
“Depot 8”
NEW
CART
CART
DO
NOT
BLOCK
9
18
Rack
FLOOR STOCK
WIP
10
CCA MODULE TEST
11 ‘ between stations
CART
CART
VMULT TEST
“Depot 10”
VIFD2 Test
“Depot 11”
MRB
CART
Super
Cart
NEW
Super
Cart
STAMP /
PART MARK
DO
NOT
BLOCK
11
New Rack
Test
Rework
VMULT TEST
“Depot 9”
Rack
STAMP /
PART MARK
VIFD2 Test
“Depot 12”
3ph, 400Hz, 120V, 20A
outlet
3ph,60Hz 208V, 30A
outlet
12
Tools
DO
NOT
BLOCK
Wire
Rack
CART
Shred
Bin
9 sq. ft.
1 square = 2.5' in 33%
view
All Content © Copyright 2015, Manex Consulting
12
Manex Approach
Phase 1: Lean
Manufacturing
Training with
Simulation
Phase 2:
Value Stream Map
Phase 3:6S
Training and
Kaizen events
 VSM Overview




 VSM Program for Tower
Sections
 1 Hands on Demonstration of One
Piece Flow; Executive team and SKU
workforce
 Creation of mock P and L for financial
impact
Phase 4: Practical
Problem Solving- 5
day Kaizen Event
1-5 day Kaizen Events with Teams
Standard work
In process inspection
Shop area focused
 6S Training: 4 hours’
• 1 Hands on 6S event
All Content © Copyright 2015, Manex Consulting
13
5S Program and Focused Kaizen Event
• 4 hours of classroom training in 5S
• Executive team
• 1 SKU work teams
• Learn about the importance of workplace organization
• 1 SKU focused Kaizen Events – reduce Waste!
• Create Standard Work for affected part
• Standard Work Combination Table
• Standard Work Chart
• Standard Work Process Capacity
• Create dedicated work fixtures
• Create correct material flow
• Understand TAKT time and cycle time
• Goal: To reduce costs immediately on high running SKUS by
reducing cycle times, reducing waste, implementing “build in quality”
and improving moral.
All Content © Copyright 2015, Manex Consulting
Eliminating NVA (Waste) - DOWNTIME
DEFECTS
TRANSPORTATION
OVER PRODUCTION
INVENTORY
WAITING
MOTION
NVA PROCESSING
EMPLOYEE
All Content © Copyright 2015, Manex Consulting
15
5S System
From Japanese words for five practices leading to a clean and manageable
work area.
• Sort (Seiri) – Eliminate unnecessary items/materials and ensure needed
items are present.
• Straighten (Seiton) – A place for everything & everything in its place.
• Shine (Seiso) – Cleaning and eliminating the source of contamination.
• Standardize (Seiketsu) – A procedure to maintain/monitor the first 3 S’s.
• Sustain (Shitsuke) – Train, educate and change habits while following
the first four S’s.
• Safety – Create and maintain a safe work environment!
All Content © Copyright 2015, Manex Consulting
16
5S Pictures – Before & After
AFTER
BEFORE
Remove the clutter, organize the affected areas so
operators do not waste time looking for items they need
All Content © Copyright 2015, Manex Consulting
17
Sample Results after Kaizen
All Content © Copyright 2015, Manex Consulting
Manex Approach
Phase 1: Lean
Manufacturing
Training with
Simulation
Phase 2 :
Value Stream Map
Phase 3:5S
Training and
Kaizen events
 VSM Overview




 VSM Program for Tower
Sections
 1 Hands on Demonstration of One
Piece Flow; Executive team and SKU
workforce
 Creation of mock P and L for financial
impact
Phase 4: Practical
Problem Solving- 5
day Kaizen Event
1-5 day Kaizen Events with Teams
Standard work
In process inspection
Shop area focused
 5S Training: 4 hours’
• 1 Hands on 6S event
All Content © Copyright 2015, Manex Consulting
19
Kaizen Goals for Bergey
• Reduce Cycle Times
• Eliminate Clutter
• Improve Layout
• Eliminate Parts Waiting
• Fix Defects In BOM
• Eliminate Passing Bad Parts
• Create Information Flow
• Improve/Create Flow
• Eliminate Tribal Knowledge
• Reduce Linear Walk
• Eliminate Excessive Motion
• Move Toward Pull System
• Reduce Table Count
• Reduce Real Estate
• Reduce Interruptions
• Create Work Instructions
• Reduce WIP
• Eliminate Defects
• Introduce Kitting
All Content © Copyright 2015, Manex Consulting
Kaizen Process
• Use the VSM to define the current state opportunity
• Brainstorm with team areas for improvement
• Create action list!
• Implement revised flow / layout
• Implement “build in quality” or “quality at source”
• Implement material handling processes
• Understand the importance of “good quality”
All Content © Copyright 2015, Manex Consulting
Team Brainstorm
• Using the problem as the basis for your question, ask “What is
causing this problem?”
• Post all suggestions
All Content © Copyright 2015, Manex Consulting
22
Name the Groups
• Once we name groups, it gives the team something to focus on
• Further brainstorming can now be performed to ensure we have exhausted
all of our intellectual resources
• Grouping ideas will also give us a means to manage implementation
actions later in the problem solving process
Product
Development
Strategic
Planning
Maintenance
Excellence
Lean Culture
Built In
Quality
Supply Chain
Management
All Content © Copyright 2015, Manex Consulting
23
Kaizen Tools
Plan
Act
Do
Check
1W
• Why?
2W
• Why?
3W
• Why?
4W
• Why?
5W
• Why?
Product
Development
Strategic
Planning
Maintenance
Excellence
Lean Culture
Built In
Quality
Supply Chain
Management
All Content © Copyright 2015, Manex Consulting
24
Eliminate Waste
Situation
KPI
Improvement
KPI
Raw materials and waste
Over 45% waste
Raw materials and waste
Under 15% waste
Running 3 shifts per day
8 pieces of equipment,
200+ lights and devices
Running 2 shifts per day
50% energy
consumption and waste
streams
Rework of finished goods
12% QA failure
Rework of finished goods
1% QA failure
Profitability
-3.2%
Profitability
+5.7%
All Content © Copyright 2015, Manex Consulting
25
Proof That “Lean Systems” Work
It does not matter what business you are in, going Lean will
drive up the bottom line
1. Medical device manufacturer reduced their cost of production by
over 50%.
2. Accessories manufacturer increased net income more than 20%
3. Contract manufacturer doubled their market share and increased
prices by 8%
4. Food company achieved over $400k in sales per employee, best in
class
5. Division of aerospace company increased sales by 700%.
6. Leading winery saw $300,000 in savings during the harvest by
reducing waste in their processes.
All Content © Copyright 2015, Manex Consulting
26
Bergey’s Challenges
1. Demand can range from 200 – 1,500 sections
annually
2. Reliant of skilled, certified welders in a regional with
a cyclical demand for welders from higher wage
industries (e.g., oil and gas)
3. Galvanizing logistics and delays can cause delivery
problems and occasionally expedited shipping
expenses
4. High CAPEX for robotic welding
5. Very high CAPEX, environmental permitting and
safety risks for in-house galvanizing
All Content © Copyright 2015, Manex Consulting
3 things MFG strive for
1. Cost: fixed costs/ variable costs/ labor costs/
shipping costs
2. Quality: MFG process/ Supplier & Vendors
3. Delivery performance: Incoming / Outgoing
All Content © Copyright 2015, Manex Consulting
Cost
1.
2.
3.
4.
Fixed costs: Machines/ Equipment maintainess cost and also
rent/ lease cost.
Variable cots: Material/ vendor cost. Are they using one supplier
for steel flanges, plates, legs and girts or ? Maybe quote from
more suppliers. Cost of bringing Galvanizing in house or
compare with other finishing process
Labor costs: work with welder to identify if there are improvement
can be made to the fixture to help min cycle time. If area more
organized, then no wait around time. Look for waste.
Shipping costs: Find few carriers to compare quotes. Also see if
you can find local galvanizing vendors to reduce shipping cost.
Or see if you can get the galvanizing vendor to pay the shipping
cost somehow.
All Content © Copyright 2015, Manex Consulting
Quality
1.
2.
3.
Quality of each MFG process: what is the quality level for semiauto welding, welding and final inspection. Often times quality
levels are skewed to seem higher than reality since operator
performs rework without telling anyone. Rework takes a long
time, so best is to get it right the first time.
Quality of supplier and vendors: sometimes supplier and vendors
have their own quality problems. Sometimes the operation will
simply accept a certain level of quality from suppliers, therefore
doing extra work in house. Ex, maybe the legs don’t come in
straight enough, then welder need to straighten it before starting
his work.
Galvanizing welded components, might have re-galvanizing/
leaching issues. By working with the vendors on product design
for manufacturability could eliminate these issues.
All Content © Copyright 2015, Manex Consulting
Delivery
1. Is the company lead times increasing? Maybe due to
inefficient in the office or mfg floor? VSM can help in
this area.
2. Capacity issue? To measure this is to capture takt
time and compare that to cycle time of such mfg
process
All Content © Copyright 2015, Manex Consulting
Questions?
George Chao
Regional Manager
925.807.5119
Chao.george@manexconsulting.com
All Content © Copyright 2015, Manex Consulting