NC Conference for Excellence

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NC Conference for Excellence October 24,
2007Embassy Suites Cary, NC
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NC Conference for ExcellenceOctober 24-25, 2007
Ashe County, NC Division
LESSONS LEARNED ON OUR
LEAN JOURNEY
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NC Conference for ExcellenceOctober 24-25, 2007
Company Background
When Charles Gates, Sr. bought The Colorado Tire
and Leather Company in 1911 for 3,500, little
did he know his small shop in Denver would evolve
into a leading rubber products company. Colorado
Tire and Leather made a single product, the
Durable Tread, a steel-studded band of leather
that motorists fastened to their flimsy car tires
to extend their mileage. From this modest
beginning The Gates Rubber Company, as it was
known then, grew into one of the world's largest
manufacturers of industrial and automotive belts
and hoses, plus a host of related products.
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NC Conference for ExcellenceOctober 24-25, 2007
Company Background
Gates Corporation
World Headquarters

Denver, CO
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NC Conference for ExcellenceOctober 24-25, 2007
Ashe County, NC Division
Ashe County Background
Originally established, in 1978, as an automotive
hose manufacturing facility. In 1998 the
facility was renovated and begin production of
automotive Micro-V belts, becoming part of the
Gates North American Power Transmission Division.
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NC Conference for ExcellenceOctober 24-25, 2007
Ashe County, NC Division
Ashe County Background
We currently employ 298 hourly and staff
associates producing products for OE customers
GM, Ford, and Chrysler and
Aftermarket customers NAPA, Carquest, and
OReilly Auto Parts.
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NC Conference for ExcellenceOctober 24-25, 2007
Ashe County, NC Division
Ashe County Background
The facility is currently certified in TS16949
Quality System ISO14001 Environmental Management
System OHSAS18001 Safety Management System GEM
Participative Management System
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NC Conference for ExcellenceOctober 24-25, 2007
The Lean Journey Begins
In 2002, Gates Lean Journey began in the Ashe
County facility. Lean at
Gates is called
Gates Production System
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NC Conference for ExcellenceOctober 24-25, 2007
The Lean Journey Begins

• Why?
• Competitive pressure
• External
• Gates
• Customer expectations
• Quality
• Delivery
• Cost
• Survival

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NC Conference for ExcellenceOctober 24-25, 2007
The Lean Journey Begins

• How?
• Hired experienced Lean facilitator
• Engaged consultants

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NC Conference for ExcellenceOctober 24-25, 2007
The Lean Journey Begins

• What?
• Established Vision Mission,
• Guiding Principles
• Gap analysis
• Conducted training education
• Established metrics
• Implemented principles

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NC Conference for ExcellenceOctober 24-25, 2007
The Lean Journey Begins
Vision We use lean principles to delight our
customers with superior Products and services
while relentlessly eliminating waste. Mission
Gates will become the most competitive supplier
in our Industry by learning and improving faster
than the Competition.
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NC Conference for ExcellenceOctober 24-25, 2007
The Lean Journey Begins
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NC Conference for ExcellenceOctober 24-25, 2007
The Lean Journey Begins

• Gap analysis -
• High scrap
• Excess inventory
• Inefficient material flow
• Downtime
• Lack of standardization
• Lack of root cause problem solving

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NC Conference for ExcellenceOctober 24-25, 2007
The Lean Journey Begins

• Training Education
• Lean Six Sigma Overview
• Overview of GPS Methodologies
• 5S
• TPM Total Productive Maintenance
• Standard work
• PPS Process Problem Solving
• Material Flow
• Continuous Improvement
• Error Proofing

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NC Conference for ExcellenceOctober 24-25, 2007
The Lean Journey Begins

• Training Education
• Initial Focus
• 5S
• TPM
• Standard work
• PPS

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NC Conference for ExcellenceOctober 24-25, 2007
The Lean Journey Begins
Training Education 5S Sift Sort Shine
Standardized Sustain A place for
everything and
everything in its place
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NC Conference for ExcellenceOctober 24-25, 2007
The Lean Journey Begins

• Training Education
• 5S Benefits
• Housekeeping
• Safety
• Efficiency (eliminate or reduce wasted
• motion)

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NC Conference for ExcellenceOctober 24-25, 2007
The Lean Journey Begins

• Training Education
• TPM Associate driven equipment
• ownership
• Autonomous, preventive, and
  
• predictive maintenance

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NC Conference for ExcellenceOctober 24-25, 2007
The Lean Journey Begins

• Training Education
• TPM Benefits
• Equipment effectiveness improvement
• Team problem solving
• Associate involvement
• Reduced unplanned downtime

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NC Conference for ExcellenceOctober 24-25, 2007
The Lean Journey Begins

• Training Education
• Standard Work Establishing and repeatedly
  utilizing best practices and processes
• Zero process variance for
  
• consistent results and output

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NC Conference for ExcellenceOctober 24-25, 2007
The Lean Journey Begins

• Training Education
• Standard Work Benefits
• Safe and efficient processes
• Consistent results
• Easily recognized abnormalities

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NC Conference for ExcellenceOctober 24-25, 2007
The Lean Journey Begins

• Training Education
• PPS A structured approach to recognizing and
  correcting abnormalities by addressing root
  cause.
• Root cause elimination equals
  
• zero reoccurrence

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NC Conference for ExcellenceOctober 24-25, 2007
The Lean Journey Begins

• Training Education
• PPS Benefits
• Focus on maintaining standard conditions
• Structured approach to problem solving
• Associate involvement

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NC Conference for ExcellenceOctober 24-25, 2007
A Lean Journey Milestone
2003 Ashe County recognized for
completing GPS Phase 1 Launched
plan to achieve
GPS Phase 2
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NC Conference for ExcellenceOctober 24-25, 2007
The Journey Continues
GPS Phase 2 Objective - GPS Phase 1
principles are fully implemented and become the
routine way of doing business at Gates Ashe
County
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NC Conference for ExcellenceOctober 24-25, 2007
The Journey Stalls

• Mid 2005 - GPS Phase 2 begins to
• lose momentum
• Jan 2006 Phase 2 completely
• stalls out

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NC Conference for ExcellenceOctober 24-25, 2007
The Journey Stalls
GPS Phase 2 Stalls Why? Where do we go from
here?
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NC Conference for ExcellenceOctober 24-25, 2007
The Journey Stalls
GPS Phase 2 Stalls Why? Associates have lost
confidence in leadership Why? Have not been
allowed to become engaged in
GPS process Why? Leadership became focused
on cosmetics of GPS instead of true
principles
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NC Conference for ExcellenceOctober 24-25, 2007
The Journey Stalls
GPS Phase 2 Stalls Why? Concerned with
meeting project timeline and milestones,
neglected real progress Why? Leader lost
focus of true GPS goal
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NC Conference for ExcellenceOctober 24-25, 2007
The Journey Revisited

• Where do we go from here?...
• Management changes
• Refocus on true GPS objective
• Strategy to engage associates

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NC Conference for ExcellenceOctober 24-25, 2007
The Journey Revisited

• Where do we go from here?...
• Associate engagement strategy
• Small group meetings to solicit associate
• input
• Acknowledgement of leadership
• shortcomings
• Recommitment to GPS objectives
• Implementation of electronic PPS log
• system, accessible to all associates

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NC Conference for ExcellenceOctober 24-25, 2007
The Journey Revisited

• Where do we go from here?...
• Associate engagement strategy
• Leadership participation in 5S and
• TPM activities
• Recognition of incremental GPS
• accomplishments
• Communication! Communication!
• Communication!

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NC Conference for ExcellenceOctober 24-25, 2007
A New Lean Journey Milestone

• Results?...
• February 2007 - Gates Ashe County
• Received Phase 2 Certification
• Highest overall GPS Audit score
• Only certified facility to be recognized for
• fully sustaining the 5th S (5S)
• Improvement in Key Performance Metrics

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NC Conference for ExcellenceOctober 24-25, 2007
Lean Accomplishments
5S -A place for everything and
everything in its
place
Before
5S Stalled
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NC Conference for ExcellenceOctober 24-25, 2007
Lean Accomplishments
5S -A place for everything and
everything in its place
5S Today
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NC Conference for ExcellenceOctober 24-25, 2007
Lean Accomplishments
5S -A place for everything and
everything in its
place
Before
5S Activity
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NC Conference for ExcellenceOctober 24-25, 2007
Lean Accomplishments
5S -A place for everything and
everything in its
place
After
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NC Conference for ExcellenceOctober 24-25, 2007
Lean Accomplishments
TPM Associate driven equipment ownership
Before
TPM in Action
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NC Conference for ExcellenceOctober 24-25, 2007
Lean Accomplishments
After
TPM Associate driven equipment ownership
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NC Conference for ExcellenceOctober 24-25, 2007
Lean Accomplishments
Key Performance Metrics Post
GPS Phase 2
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Lean Accomplishments
Key Performance Metrics Internal SD
NC Conference for ExcellenceOctober 24-25, 2007
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Lean Accomplishments
Key Performance Metrics Customer Returns/PPMs
NC Conference for ExcellenceOctober 24-25, 2007
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Lean Accomplishments
Key Performance Metrics Productivity/Unit
Increase
NC Conference for ExcellenceOctober 24-25, 2007
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Lean Accomplishments
Key Performance Metrics Days in Inventory/Dock
to Dock
NC Conference for ExcellenceOctober 24-25, 2007
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Lean Accomplishments
Key Performance Metrics Financial/Var to Std
NC Conference for ExcellenceOctober 24-25, 2007
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NC Conference for ExcellenceOctober 24-25, 2007
Lean Journey

• Lessons Learned
• Establish clear understanding of
• true objectives
• Requires unwavering commitment
• to objectives
• Must maintain clear view of
• objectives
• Must involve and engage associates

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NC Conference for ExcellenceOctober 24-25, 2007
Lean Journey

• Whats next
• GPS Phase 3
• Quality consistency
• HSE Excellence
• Sustained year on year cost downs

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NC Conference for ExcellenceOctober 24-25, 2007
Lean Journey
THANK YOU!