Michael Hipsher

1
Welcome!

• Michael Hipsher
• Director of Operations
• TEAM Industries

2
Agenda

• What Has Changed ??
• My Aunt Nondus
• TEAM Industries Overview
• TEAM Industries Story
• The lean journey begins
• Getting some momentum
• Speed Bump Change the Game
• Going forward
• Questions

3
What has changed ??

• Name
• Position
• Company
• How long has your company been working on lean?
• On a scale of 1-10 (10 being lean nirvana) how
  are you doing?
• What is your most difficult part of lean?
• 5S
• Identifying Kaizen events
• Upper management buy in/support
• Time/Resources
• Sustainment
• Changing the culture

4
My Aunt Nondus

• (Its a small world out there)

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TEAM IndustriesOverview
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TEAM Industries Overview

• Founded in 1967 by Don Ricke
• ESOP company (30 owned by associates)
• Seven Manufacturing Locations (6 Minnesota,
  1 North Carolina)
• 1250 Associates
• 240 Million Sales

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TEAM Industries Overview
8
TEAM Industries Overview

• Agricultural Equipment
• Chassis Suspension
• Hydraulic Motor and Valve
• Industrial Power Transmission
• Gear Reduction
• Marine
• Materials Handling
• Medium Heavy Truck
• Off Road Equipment
• Performance Products
• Portable Standby Power Generation
• Recreational Vehicles
• Second Tier Automotive
• Turf Care, Lawn Garden

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TEAM Industries Overview
10
TEAM Industries Lean Story
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The Lean Journey begins at Cambridge

• Researched information, benchmarking, consulting
  analysis (July 2004)
• Development of Lean Steering Committee (9.2004)
• Established Lean Engineering Position
  Christopher Olson
• Conducted 4-hour Lean Overview Training for
  Entire Facility (9.2004-11.2004)
• Continued with Lean Education using the
  Train-the-Trainer Approach.

12
Initial Expectations Intensity

• Kaizen activity 1 major event/month/100
  employees
• CI support 1 to 2 of plant headcount
• Training 20 to 40 hours of training per
  associate per year
• Visible waste hunt, point kaizen, daily
  improvement happening every day

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Training Statistics
Development Training
14
Training Statistics
Events Related Training
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Initial Results!

• Three Formal Set-Up Reduction Kaizen Events
  Completed to Date.
• Total Labor Hours savings of 54 88
• Machine Time (machine down time for set-up)
  improvements of 52 -80
• Estimated annual savings of 74,000
• Six Formal Production Process Kaizen Events
  Completed to Date and Two Process Preparation
  (2P) Events
• Reduction in WIP of 44-99
• Reduction in Standard Cost of 2-14
• Floor Space Reduction of 12-41
• Travel Distance Reduction of 18-31
• 1,164,000 in cost avoidance (2P)
• Over 413,400 in annualized cost savings.

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More Results

• Four Formal Business Process Kaizen Events
  Completed to Date

• 23,500 in estimated annual savings (note the
  savings has not been reported yet for (1)
  event).
• Conducted Waste Hunt Projects (7-wastes) in 14
  areas
• Annualized savings not calculated.
• Conducted 1 BP (Best Practices) Project
• Savings not calculated at this time.

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Lets Compare
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CI Support Throughout TEAM
Andrews Full-time Lean Facilitator -
Open Audubon Full-time Lean Facilitator In
place 2nd Full-time Position In
place Bagley Full-time Lean Facilitator In
place 2nd Full time Position - Open Park
Rapids Full-time Lean Facilitator In
place Cambridge Full-time Lean
Facilitator/Engineer In place Full-time Lean
Coordinator In place DL Full-time Lean
Facilitator In Place Baxter Full-time Lean
Facilitator In Place
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Speed Bump in our Lean Journey
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Speed Bump

• Top Line Sales Growing
• Bottom Line results declining
• Pricing pressures from customers
• Commodity surcharges, insurance cost, pricing
  issues, etc., etc., etc.
• Looked in the mirror and our baby (TEAM
  Industries) wasnt so pretty
• Need to Change the game

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• If we do what weve always done,
• Well always get what weve always got.
• And we will always do what weve always done,
• If we always think the way weve always thought.

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Sustainable Growth Model
Customers Satisfied Loyal
Culture Committed Cooperative Creative
Sustainable Growth
Leadership Empowering Freeing Serving



BM
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• OLD GAME
• Directive
• Bureaucratic
• Conservative
• No Risks
• The Same
• Self-Protection and Promotion
• Me Silos
• Entitlement
• Top Down, Command and Control
• Low Trust
• Blame
• CYA
• Hoarding Mentality (Scarcity)

• NEW GAME
• Open-Team
• Flexible
• Collaborative
• Sharing of Information
• Growth!
• Trust - safety
• Risk Taking
• Awake and being fully present
• There are no egos or sacred cows
• FUN!
• Honest
• Filled with confidence

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Get into the ZONE!
Get out of the Comfort Zone and into the Learning
Zone!
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InterFERence
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F.L.A.G.
BM
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• INTENSIFY
• LEAN ACTION
• Participate, Support and Sustain!
• LEAN Teams Working Smart

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What If?

• You did 1.5 qualified events / 100 employees /
  month
• Each event saved 4000 / month
• (hard savings)
• You sustained the results

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Here would be the results

• Plants Activity

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The 2007 Potential

• Committed to 18 Kaizen events per month with a
  savings of 4,000/mo/event in the next 6 months.
• The savings realized in 2007 would be 72,000
  (654321)1,512,000

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Where will we find the savings?

• Factories
• Office Processes
• Corporate Value Streams
• Process Development (Quoting ? Release)
• Product Development
• Every person in the company must be able to
  produce 15 more year over year

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Going Forward
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CompanyInitiatives
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Standardized Metrics
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Standardized Tracking
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Standardized Reporting
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Soft Side Focus Also

• Monthly meeting with CI Group
• High Performance Supervision (HPS) Training
• Change focus, direction, responsibility
• Sustain, Sustain, Sustain
• Strategy Development YF(X)
• What is going to make TEAM Industries unique?
• Focus on Culture Change

38
Questions?