1. Using Prototype Lead Time For
Competitive Advantage

2. Agenda
• Introduction (background data)
• Facing the Challenge of Change
• Best Practice(s) Details (How To)
• Best Practice Results
• Lessons Learned

3. Watlow Batavia Introduction
• Division of Watlow
Electric Manufacturing
• 101Employees
• Product – Custom
Cast Aluminum
Heated parts for the
Semiconductor, Food
Equipment and
Medical market
98% Products Custom
Designed & Manufactured

4. Facing The Challenge of Change
The Burning Platform
• 2002 – Not meeting profitability targets
• Many products on customer end of life
equipment
• Growth depended on landing new prototype
business to gain volume business
• Lead times of 12 weeks for complex new
prototypes
• Alternative competitive solutions 4-6 weeks for
prototypes
Site survival at risk

5. • Established first manufacturing cell in 2001. Lead time from
6 weeks to 12 working days. 50% improvement in
productivity
• 2nd through 4th manufacturing cells implemented through
2005
• Improved average prototype lead time from 12 weeks in
2001 to 6 weeks in 2006
• Utilized market based pricing knowing that lean could
improve profitability
• Doubled sales from 2002 to 2006
• Improved productivity by 34% from 2003 to 2006
The Lean Journey
Lean Implementation critical to business survival

6. Operational Lead Time
TimeA B
$
Goal: Shorten Lead Time
Product
Development
Scheduling
Manufacturing
Process
Distribution
Transportation
Accounts
Receivables
Pre-Product Scheduling Manufacturing Distribution A/R
A Lead Time Strategy An Enterprise View

7. Time And Delivery
• In custom heated part business, the first to get the
prototype in the Engineer’s hands usually wins the volume
business
•Customer needs:
-Greater variety of Engineered products
-Faster response time
Reduce lead time:
-Increase flexibility in terms of value
-Improve delivery performance (quicker quotes,
prototypes, and production.)
-Reduce costs
Lean Implementation critical to winning new business

8. BATAVIA PROTOTYPE LEAD TIME REDUCTION
PATH USING LEAN CONCEPTS AND TOOLS
Kaizen #1
2003
Kaizen #2
2005
Kaizen #3
2006
Kaizen #4
Q4 2006
Results
Actions
•Value stream mapped
development process
•Dedicated time for Eng to
design fixtures and BOM
•Identified workstation
bottleneck
•Scheduled daily design
reviews using visual cues
•Used visual scheduling
for design reviews
•Worked with cable htr.
Supplier to use std.
components to reduce
lead time
9 weeks lead-time
•Value stream mapping
•Visual scheduling
7 wks lead-time 5.5 wks lead-time Goal 4 wks lead-time
•Metrics established
•Completed standard work
•Created design cell for
flow
•Dedicated designers for
prototypes
•Developed visual
scheduling board (VVS)
•Documented mold
standards
•Reduced lead time by 3
weeks for tubular heaters
•Developed skills matrix
for Engineering
• Component
modularization
•Tooling and fixturing
modularization
•Scheduling improvement
•Mold drawing automation
•Configured standard
products
•Established sub cell for
less complex jobs
•Created visual backlog
indicator
• Separate value
stream
•Prototype
manufacturing
cell
• Create design
manuals
•In source
fixturing
Tools
•Design modularization
and standardization
•One piece flow
•Establishment of cell
•Product development
vertical value stream (VVS)
•Standard work
•6S
•Value stream
management
•Model cell

9. Kaizen # 1 - 2003
Accomplishments:
• Value stream mapped development process
• Dedicated time for Eng. to design fixtures and BOM
• Identified workstation bottleneck
• Scheduled daily design reviews using visual cues
• Used visual scheduling for designers
• Worked with major component supplier to use std.
components to reduce lead time
Results:
25% reduction in lead time from 12 weeks to 9 weeks
mainly driven by supplier lead time reduction using
standard components
We just scratched the surface

10. Kaizen # 2 - 2005
– Accomplishments
• Implemented vertical value stream scheduling board
• Created an Engineering prototype development cell
• Balanced work flow to the typical labor hours required
• Provided standard work documents for cell management
• Flow charted the process; created spaghetti diagrams to
reveal wastes
• Developed Engineering standards
– Results:
• Lead time reduced by 22%
• First pass yield improved to 42.4% - a 1531% improvement
• Productivity improved to 49 man-hrs/prototype – a 20%
improvement – redeployed 1 of 5 engineers
• Number of hand-off’s reduced to 32 – a 37% improvement
• Established visual metrics tracking within the cell

11. • Is a Lean approach to project management
• Goal is to:
– Run projects “least waste way”
– Creating outcome that delights customer
• Typical projects
– Have multiple rework loops
– Have multiple queues (waiting
for responses from other team
members)
Vertical Value Steam

12. datename Reviews
are for
Review
Freeze
point
Review
Freeze
point
Freeze
point
Review
Freeze
point
Review
Freeze
point
Review
Freeze
point
systemsDesignMarket’g Equip’t Leader Manuf’g serviceusersretailersShare’hs supplier supplier
task
task
task
task
task
task
task
task
task
task
task
task
?
?
?
Typical Vertical Value Steam
Std work
for each
activity
Layer
reviews
With input
& output
criteria
Freeze
points
occur
after each
layer
review

13. Lean Project Management
– Projects suffer the same wastes as in manufacturing
– Eliminating waste can control the project timeline
Typical project wastes
– Multi tasking
– Rework / multiple iterations
– Waiting for approval from internal suppliers
– Hand offs
Vertical Value Stream
Five lean principles can be applied to project management:
value, value stream, flow, pull and perfection

14. Toll Gate Review
– Primary means of eliminating waste escaping
from one layer to the next
– Paying lip service to toll gate reviews for short
term gains always results in rework and waste
– The layered approach ensures the amount of
tasks in progress is low and shortens time line
Vertical Value Stream
Getting right stakeholders is critical for successful
Toll Gate review

15. Project Trouble Charts – Decision and/on
– Used at the end of every layer review
– Looking for “project defects”
• Where was the defect found
• Where was the defect created
• Where should the defect have been found
Vertical Value Stream
Project trouble charts can help pareto problems
to drive improvement projects

16. Visual Scheduling Board
Visual Scheduling board critical to identification of defects
Trouble Board
with actions
And/on
Red/Green
magnets to
indicate
status

17. • Evaluated typical projects and identified
common freeze points on visual scheduling
board
• Defined daily review of visual scheduling board
with appropriate stakeholders and decision
makers
• Document actions to get projects back on track
and potential future kaizen opportunities
Adaptation of Vertical Value Stream
Vertical value stream adaptation critical to reducing waste
and increasing speed

18. • Quicker decision making due to more
frequent project reviews and right decision
makers being present
• Project defects identified earlier
• Easier for anyone to see project status
without looking at Gantt chart in computer
Benefits of VVS
Visual Scheduling board critical to identification of defects

19. Layout before kaizen
Hand-off’s by skill – excessive wait time; poor flow

20. Cellular Layout After Kaizen
Baton
pass
zone
Balanced work flow requires multi-skilled Engineers
for optimum performance.

21. Bar chart before kaizen
TOTAL MCT:
TAKT TIME
= (available time,sec)
(customer demand)
0
= 460
0.65 13 per month
MIN STAFFING:
= (total MCT)
(takt time)
= 3335
707.69
Average eff = sum OCT
# op's x t/t
Average eff = 94%
= 4.71
0 3335
= 707.69
0 0 0 0
Manual Cycle Time (MCT's)
667 667 667 667 667 0 0
667 667 667 667 667
0
100
200
300
400
500
600
700
800
900
1000
Design Engineer Production Engineer Manufacturing Engineer Engineer Engineer
People
Time(min)
Non-value Added
Value Added
Takt time
STANDARD WORK BAR CHART
PROTOTYPE ADMIN CELL
Before - needed 5 Engineers to meet customer takt time

22. Prototype VS Bar Chart After KAIZEN
MODELS INCLUDED: All Custom 0 Date:
0 0
TOTAL MCT:
TAKT TIME
= (available time,sec)
(customer demand)
0
= 460
0.65 13 per month
MIN STAFFING:
= (total MCT)
(takt time)
= 2314
707.69
Average eff = sum OCT
# op's x t/t
Average eff = 82%
Prototype Administrative Cell Bar Chart (loading diagram)
Manual Cycle Time (MCT's)
585 622 622 485 0 0 0 0 0 0 0
4/28/2005 19:50
= 3.27
0 2314
= 707.69
585 622 622
485
0
100
200
300
400
500
600
700
800
900
1000
Prototype engineer Prototype engineer Prototype engineer Prototype engineer
People
Time(min)
STANDARD WORK BAR CHART
PROTOTYPE ADMIN CELL
Each associate completes 1244
minutes of work - baton pass zone.
After - needed 4 Engineers to meet customer takt time

23. Standard work board
Metrics drive continuous improvement

24. Before
Circle diagram of the current
State from receipt of product brief to
Manufacturing order packet release.
Circle diagrams show the number
Of moves that a “need” goes through
During processing – current state is 51
Moves with 101 steps
Circle diagram after improvements.
The number of moves has been
reduced to 32 – a 37% improvement.
Circle Diagrams
Circle Diagrams helps see waste

25. Impact/Difficulty Matrix
Impact
Difficulty
10
HI
LO
0
LO HI
10
50
Priority Item No. Action Items Difficulty
Impact on
Metrics
Time
required
to make
change
happen
(man
hours) Team
A 50 Product engineer customer approval template (and buy in from sales) 1 6 1 Mike B, Jerry, Tony
B 16.1 Standard modularization of termination (PPL, subassy's, standards of use) 5 9 24 John, Mike
B 48 Cell creation for prototype flow 3 8 8 Ted, Jerry
C 1 Web/Excel based product brief 4 5 6 Jeff
D 13 Standardization for machine stock 3 5 8 Ken
14 Standardization for machine tolerances 3 5 8
39 Manufacturing process for components made in-house 3 5 4
28 Standardization for pinning 5 8 24
27 Electrical connectors preferred parts list (Amp, etc) and application guide (temps, tools, wire gages, ampacity)5 5 12
16.1
48
113
14
39
28
27
11
1 2
3 4
Execute in 1,
2, 3, 4 order.
9
23,24,46
22
3,30
21,29
6,33,35
17,42,49
7
34,38
16.2
15
20
Impact / Difficulty Matrix helps decision making process

26. Opportunities From Flow Chart
Metrics:
Lead Time (Flow Time) reduction, min.
Manual Cycle Time. min
FPY
Priority Item No. Action Items Difficulty
Impact on
Metrics
Time
required
to make
change
happen
(man
hours) Team
A 50 Product engineer customer approval template (and buy in from sales) 1 6 1 Mike B, Jerry, Tony
B 16.1 Standard modularization of termination (PPL, subassy's, standards of use) 5 9 24 John, Mike
B 48 Cell creation - 1 ME completing routers Ted, Jerry
C 1 Web/Excel based product brief 4 5 6 Jeff
D 13 Standardization for machine stock 3 5 8 Ken
14 Standardization for machine tolerances 3 5 8
39 Manufacturing process for components made in-house 3 5 4
28 Standardization for pinning 5 8 24
27 Electrical connectors preferred parts list (Amp, etc) and application guide (temps, tools, wire gages, ampacity)5 5 12
11 Modify meeting form to include outside processes/vendors 1 2 0.5
9 Second flag over coffee machine 1 1 1
22 Bushing parts list 1 1 1
23 Plate parts list 1 1 1
24 Bar stock parts list 1 1 1
46 Mold checking process guidelines 1 1 1
3 Two man meeting (Barry & Mike B.) 2 4 2
30 Standardization for lathe fixturing/ guidelines for fixture holes 2 4 1
21 Weld plug library feature (w/i SW) & standards 2 3 4
29 Standardization for carrot/casting size 2 3 4
6 Produce P.O. requisition and document process 2 2 3
33 Coating standards & guidelines 2 2 4
35 Standardization for cleaning guidelines / standard notes 2 2 4
45 Determine if mold materials can be ordered earlier 2 1 4
4 Metric Development for New Product Development Tracking (weekly) 3 3 2
25 Tubing preferred parts list and standards of use (pressure ratings, etc) 3 3 4
40 New Part number templates for MacPac 3 2 8
43 Transition to MoPac 3 2 6
51 Visual management for prototypes on the floor (incoming/receiving) 3 2 4
52 Planner/Product engineer to determine promise date and firm up dev. Order 3 2 4
8 Richmond expediting program - Thermocouples 4 4 8
26 Tube fittings preferred parts list (Swagelok, etc.) 4 4 6
31 Standardization for weld joint designs 4 4 8

27. Skills Matrix
Dept
Semiconductor
Food
LifeSciences
GeneralMarkets
Cast-In
Circulation
Heater
IFC
Machined
Asssemblies
HeatTransfer
ThermalSystems
FluidDynamics
Mechanical
Design
Metallurgy
ProductCosting
AgencyApproval
Performanceand
Reliability
Testing
G,D,&T
SolidModeling
Drawings
MACPACBOM
FEASoftware
TubularHeater
CableHeater
Sensor
Controller
Mold
Heater/Tube
Fixture
Machining
Fixture
HeliumLeak/
PressureCheck
Fixture
Mike B. (A)
Bob (B)
Jeff (C)
Scott
John (D)
Ken
Zeke
Dept
RouterEntry
FoundryLabor
Rates
Machining
LaborRates
Assembly/
Termination
LaborRates
Heater/Tube
Bending
Pinning
Casting
Machining/
Machining
Capabilities
Electrical
Wiring/
Circuits
General
Termination
Assembly
PartCleaning
Coating
TIGWelding
EBWelding
Induction
Brazing
SpotWelding
Manual
Brazing
Packaging
Mike B. (A)
Bob (B)
Jeff (C)
Scott
John (D)
Ken
Zeke
MACPAC Router Manufacturing Process Knowledge
MANUFACTURING ENGINEERING KNOWLEDGE
Market Knowledge Product Families Product Engineering CAD Component Design Tooling Design
DESIGN KNOWLEDGEAPPLICATION KNOWLEDGE
Skills matrix crucial to transition from Engineering
specialists to generalists

28. Shows operator cycle time only
rather than the normal use to
capture total flow time. Each
operators work is color coded.
Bar charts are built off of this
info and it’s an initial shot at
work sequence for engineers.
The baton pass zone will be in
active use particularly during
start up where skills will be an
issue and large blocks of work
make separation of elements
difficult.
Product Activity Analysis Form Symbols
Mapping the process by walking the route
Instructions : Symbols
1) Imagine you're the item going through the Process Work (value add)
2) Walk the Path the item takes Work (non value add)
2) Task must physically change item 3) Record each activity (Working, Waiting, Moving) Waiting (delayed)
3) Must be done right first time 4) Determine if the activity adds Value Waiting (stored)
Moving
Process : Prototype Batavia
Item : Manual cycle time only
Value
No Days Hours Minutes Added ? Operator
1 Assist account mgr with quotes X 6
2 Inventory review of existing matl X 5
3 Create part # in Macpac/heater calc X 3 3
4 Complete req & deliver order X 5
5 Creates MS Project & excel sheets X 15
6 Enter into Lotus Notes database X 9
7 Log Drawing (get drawing number) X 1
8 Correlate review with QA X 5 First pass, best balance
9 Conduct review meeting X 0.99 30 A 585 Front end/ back end of dsg
Conduct review meeting 30 Model B 573 Model
Conduct review meeting 30 Dwgs C 671 Dwgs
Conduct review meeting 30 D 485 Mfg / mold
10 Update metrics weekly X 8 2314
11 Pick upper part number X 5 5 Order
12 Heater calculations X 47 47 1
Create FEA model @ 5% 5 5 1.5
FEA weighted time @ 5% X 72 72 2
Look up existing parts list X 47 3
Establish pinning X 31 31 4
Establish machine fixture holes X 16 16 5
Determine shaft joint design X 16 16 6
Determine electrical assy style X 78 78 7
Determine coating/cleaning/packaging X 16 16 8
Create solid model X 523 523 9
Create drawings X 575 575 10
Create BOM X 47 47 11
Create lower component drawings X 62 62 12
Create lower part numbers in Macpac X 16 16 13
Enter BOM in Macpac X 16 16 14
Complete designer checklist X 31 15
Update mopac form X 16 16 16
Complete design file X 8 17
13 Set flag for review meeting X 5
14 Conduct mfg'ing review X 20
Conduct mfg'ing review 20
Conduct mfg'ing review 20
Conduct mfg'ing review 20
15 Check inventory X 5
16 Complete countermeasures as required NA
16 Deliver order to purchasing X 5
17 Fixture design heater bending X 60 60
18 Additional time for machine fixtures X 12 12
19 HE check fixture X 14 14
20 Design mold X 0.95 111 111
Order materials X 2 2
Get quotes from outside tool makers X 5 5
Designer places order X 2 2
Complete countermeasures as required X NA
21 Complete quality plan X 10 10
22 Complete router (total time) X 60
23 Send approval drawing to customer X 10 10
24 Incorporate customer changes as req. X 0.82 8 8
25 Resend drawing to customer X 2 2
26 order final components/move to purchasing X 0.96 10
27 Send prints to outside vendors for quote X 10
28 Activate part number in Macpac X 1
29 Get promise date from planner X 5
30 Complete DEV X 5
31 Notify customer service of promise date X 2
32 Create first article drawing X 15
33 Walk to QC, deliver drawing X 5
34 Copy prints for packet X 3
35 Take outside drawings to shipping X 5
36 Deliver packet to mfg team leader X 8
37 Assist mfg with process development X 0.88 50
38 Conduct performance testings as req X 5
Days Hours Minutes
Total Manual cycle Time 2314
Value Added Time 1780
Time
Activity
Value =
1) Customer must think task is important
Page 1 of 2
Work
valueadd
Work
nonvalueadd
Waiting
Stored
Waiting
Delayed
Moving
Transportation
Distance
© 2004 - Simpler, Inc. 888-LEAN-888 www.simpler.com
SM
Simpler
Yield
%rightfirsttime
Activity Analysis

29. Product Brief revised
After – one page with drop
down menu’s & field
requirements
Before – three pages; high source of errors and rework.
Internal Information
Prepared By: Product Manager: Date:
Quote #: Order #: Request Date: Order Date: 1st Qty:
Customer Information
Customer: Contact: Phone:
Watlow Field Sales: Roger Office Phone: 215-345-8130 Mobile Phone: 215-262-5485
Market/Application: Product Class:
Prototype Quantities: Production Quantities: Business Segment
Customer Drawing: Drawing No. Revision: Date Received:
Part Information:
Material: Shape: Size: Similar to:
Volts: Watts: Max Current:
Describe any dimensional limitations and/or how part is mounted:
Describe any height limitations for heater extensions:
Manufacturing Information:
Tooling: New Tooling Req'd?
Production Method: Casting type:
Standard Product: Standard Custom?
Outside Process Needed: Process Type:
Environment Information:
Describe the application:
Max Temp of assembly: Is part enclosed or open?
Operating Temperature: Ramp Time:
Is part in a washdown environment?: If so, PSI:
Electrical Information:
Volts: Watts
Megohm Limits: Hypot Limits:
Wire Type: Heat Shrink Type:
Wire Assembly: dropdown (tbd - John's list) WaterProof?
Connector Type:
Tubing Information:
Tube Size: Tube Material:
Fitting Type: Fitting Material: Pressure Testing?
Comments:
Sensor Information:
Sensor Type: Calibration: Material:
Lead Type: Lead Length: feet
Connector Type:
Additional Specifications:
Coating: Cleaning Specifications:
Special Handling: Special Packaging:
X-Ray: Ultrasound? FEA Required?
Performance Specifications:
Operating Temperature: link Uniformity: Ramp Rate:
Cooling Rate: Uniformity Area: Dimensional Flatness:
120
Watlow Product Brief
Product Class 1 & 2
Tony Meadors
Aichs
Food
1
Yes
Low Eng.
1
Aluminum 319 Rectangular
120
YesToolingFixtures
Cast-In Tilt-Pour
CAST-X 2000 BX13J4G400X-XXX
Yes Welding
350°C / 662°F Open
250°C / 482°F >60
No
MGT Teflon
No
Bare leads
Thermocouple J 304 SS
TFE or FEP/Stranded 3
Standard 1-1/2" Split Leads
Bare
No No No
No
Print

30. Preferred Parts List Standard For
Termination
Design Standards
Wire Derating, Common Wires Sorted by AWG
Description:
Insulation:
Conductor:
Watlow
Part Number
Color Comments
conductor
OD (in)
conductor
CMA(circ
mils area)
Insulation OD (in)
min./nom./max.
AWG @40 C
@101 to
120 C
@121 to
140 C
@141 to
160 C
@161 to
180 C
@181 to
200 C
@226 to
250 C
@ 276 to
300 C
@ 326 to
350 C
@ 376 to
400 C
24 9 7.1 6.9 6.7 6.5 6.2 5.5 4.8 3.9 2.7
530-35-11-22 Natural 0.030 700 .099/.103/.109 22 12 9.5 9.2 9.0 8.7 8.3 7.4 6.4 5.2 3.6
530-35-11-20 Natural 0.037 1000 .104/.108/.114 20 18 14.3 13.8 13.5 13.0 12.5 11.1 9.6 7.8 5.4
530-35-11-18 Natural Common leadwire 23 18.2 17.6 17.2 16.6 16.0 14.1 12.3 10.0 7.0
530-35-11-27 Black 23 18.2 17.6 17.2 16.6 16.0 14.1 12.3 10.0 7.0
530-35-11-28 Red 23 18.2 17.6 17.2 16.6 16.0 14.1 12.3 10.0 7.0
530-35-11-16 Natural 30 23.8 23.0 22.4 21.6 20.8 18.4 16.0 13.1 9.1
530-35-11-25 Green Ground 30 23.8 23.0 22.4 21.6 20.8 18.4 16.0 13.1 9.1
530-35-11-14 Natural 45 35.6 34.4 33.6 32.4 31.2 27.6 24.0 19.6 13.6
530-35-11-23 Green Ground 45 35.6 34.4 33.6 32.4 31.2 27.6 24.0 19.6 13.6
530-35-11-24 Black 45 35.6 34.4 33.6 32.4 31.2 27.6 24.0 19.6 13.6
530-35-11-29 Red 45 35.6 34.4 33.6 32.4 31.2 27.6 24.0 19.6 13.6
530-35-11-12 Natural 56 44.4 42.9 41.9 40.4 38.9 34.4 29.9 24.4 16.9
530-35-11-26 Green Ground 56 44.4 42.9 41.9 40.4 38.9 34.4 29.9 24.4 16.9
530-35-11-10 Natural 0.116 10500 .220/.225/.231 10 75 59.4 57.4 56.1 54.1 52.1 46.1 40.1 32.7 22.7
530-35-11-8 Natural .225/.262/.270 8 104 82.4 79.6 77.8 75.0 72.2 63.9 55.5 45.4 31.5
530-35-11-6 Natural .298/.305/.313 6 138 109.3 105.6 103.2 99.5 95.8 84.7 73.7 60.2 41.8
MGT, NPC Wire (Preferred) Current capacity
18
16
14
120.093
0.077 .142/.146/.1524100
6500 .159/.163/.169
0.059
0.046 .115/.119/.125
.126/.130/.136
1600
2600
450C, 600V
MGT, UL5107
NPC - 27%
Gray text = not preferred
EXAMPLE
Design standards avoids mistakes and reduce waste
looking for information

31. Kaizen # 3 Summary
Accomplishments
•Component modularization
•Tooling and fixturing modularization
•Scheduling improvement
•Mold drawing automation
•Configured standard products
•Established sub cell for less complex jobs
•Created visual backlog indicator
Results
•Reduced lead time by 21%
•Reduced fixturing costs by 71%
•Reduced mold design time by 38%

32. Accomplishments
Standardization:
• He Leak Check Fixtures
– No mechanical fasteners
• Use weight of fixture (SST)
– 3 parts maximum
• Middle cylinder optional for longer
terminations
– Custom adaptor plate
• Simple design
Benefits:
• Decrease delivery and cost due to
simpler design
• Reduce the number of new custom
fixtures that are needed.
Fixture 202057A01
40 to 16 reducer
Clamp, size 40
Clamp, 16
After:
Before:
One clamp
junction
Optional
spacer
Simple
adaptor
plate
Universal
Fixture

33. Accomplishments
Lead-Time Reduction:
• Early prototype order scheduling
• Use Master Routers
• Use skeleton BOM’s
– Request prototype manufacturing order day of Initial Design Review
– Engineering Regen’s order when complete business system
documentation is in place
• Changes business system description to *NPDT* when complete
Benefits:
1. Early notification of promise dates to customer
2. Allocate Production resources early in process
3. Use business system to plan fixturing and documentation completion
dates
4. Easier to communicate customer change effect on delivery

34. Accomplishments
Lead-Time Reduction:
• Ordering of long lead-Time Components
– Identify key components in Initial Design Review
– Add to form so that Designers know which components to
design first
– Order and expedite components ASAP
• Prior to completion of entire design and customer approval
Benefit:
• Reduces component procurement time
• NOTE: Does add risk of component rework or scrap.

35. Accomplishments
Lead-Time Reduction:
• SolidWorks Mold Drawings
– Automate the creation of
mold drawings
• Create a template with
standard views and
automatic dimensioning
Benefit:
• Save ½ to 1 day of
Design time

36. Accomplishments
High Complexity
Design Products
Low Complexity
Design Products
• Created two flow paths in design cell to improve flow and
reduce Lead time of less complex jobs
•Less complex jobs flow faster because they don’t wait behind
more complex jobs
Product Engineer
Design Cell I (High
complexity)
Design Cell II
(Low Complexity)
Sr. Designer
Sr. Designer
Designer II
MFG Engineer
Sr. Designer (Mold/Tooling Design)
Technician Specialist
Creating flow increases velocity

37. Overall Site Results From Reduced Prototype
Lead Time
Revenue by Quarter
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
$5,000
Q3-01
Q4-01
Q1-02
Q2-02
Q3-02
Q4-02
Q1-03
Q2-03
Q3-03
Q4-03
Q1-04
Q2-04
Q3-04
Q4-04
Q1-05
Q2-05
Q3-05
Q4-05
Q1-06
Q2-06
38%
CAGR
• Quote win rate increased by 15% from 2002 to 2005
• Doubled number of prototypes with same number of employees

38. Prototype Lead Time History
0
2
4
6
8
10
12
2002 2003 2004 2005 2006
Year
LeadTime(weeks)
Continual improvement in process using Kaizen approach has
driven results even as project complexity has increased

39. • Kaizen #4 planned for 4th Quarter 2006
based on output from project trouble
charts. Will include a focus on:
– Creating separate value stream for
manufacturing prototypes using a dedicated
manufacturing cell and resources
– In source manufacturing of fixturing
– Creating design manuals
Next Steps
Lean principle of Perfection will continue to be applied to gain
a competitive advantage

40. Lessons Learned
• Lean principles commonly applied on the
manufacturing floor can be equally applied to the
administrative areas (though it may seem tough at
first)
• You can kaizen the same area several times and will
continue to make significant improvements
• Have to challenge paradigms to be successful
• Design standardization is critical to shorter prototype
lead time
Shorter prototype lead times drive growth opportunities

41. Thank You
Q&A