The Searcy Laundry Products facility has implemented a clear vision and mission focused on providing the world's finest laundry products and services with uncompromising quality, convenience and performance to serve customers. Leadership communicates this vision through managers and supervisors to empower associates. A Factory Master Plan prioritizes key projects and goals to deploy the vision. Recent LeanSigma initiatives have included opening a new lean dryer line to reduce work-in-process and free up floor space, with plans to eliminate flatline systems and old paint systems for further space recovery.
1. Searcy Laundry Products
2003 - 2004 Achievement Report
Todd Cowell
LeanSigma
®
Manager
Jeff Durham
Director of Operations
Daryl Wirges
LeanSigma
®
Engineer
Maytag Appliances
Searcy Laundry Products
200 Queensway
Searcy, Arkansas 72143 LeanSigma
®
is a registered
trademark owned by Maytag
LeanSigma®
2. Searcy Laundry Products
Introduction
Intent to Apply Form
Support Document
Section I: Leadership Culture & Infrastructure .........………………………............... 1
I A. Leadership ...........…………………………………………............................ 2
I B. Empowerment ...................................……………………………………… 5
Section II: Manufacturing Strategies & Systems Integration ...........………………... 9
II A. Manufacturing Vision & Strategy ....................…………………………. 10
II B. Innovations in Market Service & Product ..........………………….......….. 10
II C. Partnering With Suppliers/Customers & Environmental Practices………... 13
II D. World Class Manufacturing Operations & Processes ......………………..... 17
Section III: Non-Manufacturing Support Functions .................………………………. 27
Section IV: Quality, Cost & Delivery .............................………………………………. 35
IV A. Quality & Quality Improvement .....................……………………………... 36
IV B. Cost & Productivity Improvement ................…………………………...….. 42
IV C Delivery & Service Improvement ................…………...……………...…. 47
Section V: Customer Satisfaction & Profitability .....................……………………….. 49
V A. Customer Satisfaction ..........................................…………………………... 50
IV B. Profitability ................…………………………………………...……...….. 53
Summary of Achievements .......................………………………………………........... 55
Acronym Listing ……………………………………………….………………………… 58
Glossary of Terms ……………………………………………………………………….. 60
3. Searcy Laundry Products
Introduction
Laundry production for the Searcy, AR
facility started in 1970 at its current location
under the Speed Queen name. The corporate
headquarters was located in Ripon, WI. The
original Searcy plant consisted of 165,000
square feet and production included 70
automatic washers, 70 dryers, and 250 wringer
washers per day.
The facility was expanded to 235,846 in
1973 to provide for on-site finished goods
storage. Raytheon purchased Speed Queen in
1979 as the plant continued to produce laundry
products under the Speed Queen brand name.
Amana, which was also a part of the Raytheon
purchase, introduced its first line of laundry
products in 1982 at the Searcy facility.
Production rates remained relatively flat
until 1993 when Amana introduced its first
clothes dryer with a stainless steel cylinder, a
reversible door, and the largest door opening in
the industry. Over $18M was spent on new
equipment, tooling and processes between 1990
and 1993 to support the launch of these new
dryer offerings. The facility was expanded
again in 1995 to 288,946 square feet.
Goodman Holding Company purchased the
Searcy facility along with other Amana sites in
1997. The original Speed Queen Corporate
facility was not a part of this purchase and as a
result, the Searcy facility was challenged to
begin producing all of the Amana top load
washers to go along with the dryers already
being manufactured. During an 18-month
period beginning in December 1997, over $40M
was spent increasing the size, capacity, and
capability of the Searcy facility to produce both
washers and dryers. As a result of the new
Searcy washer plant, the total plant size
increased to 501,555 square feet.
Maytag purchased the Searcy facility in 2001 to
increase its laundry offerings and to build upon
the positive attitude and achievements already in
place.
Our existing continuous improvement
culture was a perfect fit with Maytag, when the
Maytag Corporation purchased our facility and
we began the transition toward a Lean
environment. Our philosophy of manufacturing
with shortest possible cycle times and excess
amounts of work in progress (WIP) were
transformed and replaced with a new concept of
operation known as TBM's (Time Based
Management of Durham, North Carolina)
Global Production System.
In 2001, Maytag SLP added the Six Sigma
methodology to its practices and created the
LeanSigma®
strategy. This environment has
encouraged change and provided associates with
the necessary tools to ensure the changes that are
implemented sustain and truly improve
processes.
The SLP plant site includes the following
functions: Finance, Human Resources,
Purchasing, Research & Development and
Manufacturing. The Sales and Marketing
functions are managed from Maytag Appliances
headquarters in Newton, Iowa. Maytag
Customer Services (MCS) are managed out of
Cleveland, Tennessee.
Some of the strengths of the plant include:
• Clean and safe work environment
• Culture oriented toward quality
• Culture oriented toward change
• Engaged work force with exceptional work
ethic
• Strong team-based environment
• Modern facility with potential for growth
• Low conversion costs associated with our
products.
The Searcy facility is a showplace of best
practices and we take pride in showing our
accomplishments to others.
4. 2004 Shingo Prize for Excellence in Manufacturing
Business Intent to Apply Form
Applicant
Company Name: Maytag Searcy Laundry Products
Mailing Address: 200 Queensway, Searcy, AR 72143
Highest Ranking Official of Applying Entity
Name: Jeff Durham Title: Director of Operations
Telephone: (501) 279-7315 Fax: (501) 279-7361
Email: jeff.durham@maytag.com
Official Contact for Correspondence
Name: Todd Cowell Title: LeanSigma Manager
Telephone: (501) 279-7357 Fax: (501) 279-7378
Email: todd.cowell@maytag.com
Eligibility Information
Check One:
Large Business: ٱ Whole Company ٱ Division/Business Unit ٱ Single Plant
Small Business: ٱ Whole Company ٱ Division/Business Unit
Industrial Classification according to U.S. SIC Codes: 335224
List all individual sites and/or facilities that make up your company, subsidiary, business unit or division. Indicate the
number of employees at each site/facility, and whether the site/facility is to be included in the application.
Site/Facility Number of Employees Included (Y/N)
Maytag (SLP) 335 Y
____________
This form should also be accompanied by a brief (2 - 5 page) description of the applying entity, its relationship to other
plants, divisions or business units within the total company, and a brief history of the company that includes a description
of product lines, organizational structure, sales history, etc.
Statement
We understand that this Intent to Apply Form and the subsequent Achievement Report will be reviewed by members of
the Board of Examiners, Board of Governors and staff of the Shingo Prize. If selected as a Candidate, our organization
agrees to host a site visit to verify information provided in the achievement report. We understand that if the company is
selected for a site visit a site visit fee will be assessed.
Signature Authorizing Official
X: Date: June 1, 2003
Name: Todd Cowell Title: LeanSigma® Manager
Note: Checks for application fees should be made payable to the Shingo Prize for Excellence in Manufacturing.
5. Shingo Prize for Excellence in Manufacturing
2004 Intent to Apply Supporting Documents
Maytag Searcy Laundry Products
Maytag Searcy Laundry Products is committed to industry leadership in meeting and
exceeding customer expectations and needs through dedication to continuous improvement
in safety, quality, cost, delivery and work environment.
Commitment to implementing positive change in these five platforms by associates that
display a positive attitude, technical expertise, inherent talent and a heightened sense of
urgency create an atmosphere for success in our industry. Maytag (SLP) associates have a
“can do” attitude that is very prevalent throughout the entire organization. The Searcy
facility has taken this “can do” attitude along with the tools of LeanSigma® to drive
continuous improvement in all areas of the value stream process including areas that are
already considered strengths of the plant. Some of the strengths of the plant include: clean
and safe work environment, culture oriented toward quality, culture oriented toward
change, engaged work force with exceptional work ethic, strong team-based environment,
modern facility with potential for growth, and low conversion costs associated with our
products. The Searcy facility is a showplace of best practices and we take pride in showing
our accomplishments to others.
Plant History
Laundry production for the Searcy, AR facility started in 1970 at its current location
under the Speed Queen name. The corporate headquarters was located in Ripon, WI. The
original Searcy plant consisted of 165,000 square feet and production included 70
automatic washers, 70 dryers, and 250 wringer washers per day. The facility was expanded
to 235,846 in 1973 to provide for on-site finished goods storage. Raytheon purchased
Speed Queen in 1979 as the plant continued to produce laundry products under the Speed
Queen brand name. Amana, which was also a part of the Raytheon purchase, introduced its
first line of laundry products in 1982 at the Searcy facility. Production rates remained
relatively flat until 1993 when Amana introduced its first clothes dryer with a stainless steel
cylinder, a reversible door, and the largest door opening in the industry. Over $18M was
spent on new equipment, tooling and processes between 1990 and 1993 to support the
launch of these new dryer offerings. The facility was expanded again in 1995 to 288,946
square feet. Goodman Holding Company purchased the Searcy facility along with other
Amana sites in 1997. The original Speed Queen Corporate facility was not a part of this
purchase and as a result, the Searcy facility was challenged to begin producing all of the
Amana top load washers to go along with the dryers already being manufactured. During
an 18-month period beginning in December 1997, over $40M was spent on increasing the
size, capacity, and capability of the Searcy facility to produce both washers and dryers. As
a result of the new Searcy washer plant, the total plant size increased to 501,555 square
feet. Maytag purchased the Searcy facility in 2001 to increase its laundry offerings and to
build upon the positive attitude and achievements already in place.
The Searcy plant is one of four Maytag laundry facilities and it contributes in excess of
$98M in annual sales. The Searcy site includes the following functions: Environmental
Health and Safety, Facilities, Finance, Human Resources, Purchasing, Research &
Development, LeanSigma®, Manufacturing, and Quality. The Sales and Marketing
functions, including Consumer Services, are managed from Maytag headquarters in
Newton, Iowa.
6. Products and Manufacturing
The Maytag (SLP) facility produces laundry washers and dryers through four Core
Manufacturing Competencies: Fabrication, Finishing, Assembly, and Lean Manufacturing.
Press form
sheet metal
parts
Fabrication
Operations
Finishing
operations
Assembly
operations
Final
Testing
Packaging
and
Warehouse
• Dual 1000T Automatic feed Transfer press
• Other automatic presses 60-600T
• Various hand feed Presses 60-600T
• Dryer cylinder machine
• Washer inner basket weld cell
• 3-sided Cabinet line
• Suspension welding cell
• (2) 10 stage multiple line wash systems
• Exterior powder coat system and oven array
• Interior powder coat system for Dryers
• Friction surface Teflon powder system
• In-house waste water treatment system
• (2) Floor conveyor systems (washer/dryers)
• Monorail overhead conveyance from press
thru paint to point of use in assembly
• Various automated assembly machines
• Fixtures, workstations, and small floor
conveyors to support one piece flow from
part to finished good delivery
• (2) 100% inspection systems that complete
functional sequence on each product.
• Post production consumer audit of a
percentage of daily production.
• (2) automated crating station (washer/dryer).
• Finished goods storage 164,000 ft2.
Sheet metal parts formed from coil and blanks
for cabinetry and internal components.
Challenges: Associate safety, Dimensional
capability, scrap costs, and on time-delivery to
fabrication and finishing departments.
,Searcy Laundry Products
Products, Processes and Challenges
Sheet metal parts washed and painted per
consumer or functional specification.
Challenges: Cosmetic issues, rework costs,
and paced delivery to final assembly.
Sheet metal parts transformed from press
formed parts into pre-assemblies to be painted
or assembled.
Challenges: Associate safety, Dimensional
capability, scrap costs, and on time-delivery to
fabrication and finishing departments.
Fabricated/finished and purchased parts are
assembled into complete functional unit for
final testing.
Challenges: Associate ergonomics, Cosmetic
and fit issues, supplier quality, direct labor
costs, and flow vs. demand.
Assembled unit is functionally tested though a
series of checks designed to reduce service call
rate and bolster consumer confidence.
Challenges: Testing vs. quality issue
containment, reduction of non-value added
activities, data collection for response to
recurring issues.
Assembled unit is prepared for shipment and
delivery to end user.
Challenges: Protection of unit from handling
damage until end user places unit into use,
maintain stock of inventory to react to natural
volume fluctuation in customer demand.
8. Searcy Laundry Products
2
Maytag, Searcy Laundry Products’
Vision is to:
• Be the “preferred place to work” in
the community
• Create an environment that
promotes a fully engaged, fully
accountable work force.
• Deliver products and services that
are recognized as having best-in-
class quality and cost.
• Provide an exceptional return on
investment to all stakeholders.
I. Leadership culture and
Infrastructure
A. Leadership
The mission statement we at SLP proudly
follow is simple and clear:
"Maytag SLP’s mission is to serve our
customers by providing the world’s
finest laundry products and services
known for uncompromising levels of
quality, convenience and performance.”
This clear statement of our purpose and
directives gives each associate at SLP a true
north indicator to guide their daily activities and
responsibilities. We use its focus on our
customers and products to refine the level of
commitment to the measures we continually
strive to improve: Safety, Quality, Cost, and
Delivery. The statement also reminds the
associates of SLP that the customer’s
expectations are always changing and the task
of delighting them is the challenge.
Fig 1.1 the Maytag SLP Vision Posting
The vision is to attain a state better than any
competitor and again, focus on achieving that
level of excellence with our customers, our co-
workers and our investors. Being the best is a
bold ambition that implies our efforts will
always pursue a higher performance than our
customer’s needs and our competition’s
abilities.
The term “customer” can be defined in
different ways, but the difference at SLP is the
concept: the customer is always the next step in
the process. That attitude is being carried
through to our improvement of all processes
with LeanSigma®
The leadership at SLP is structured typically
by area of expertise: (i.e. Accounting, HR
Production, Engineering, Etc…) Managers,
supervisors and coordinators all work to
communicate and interpret this mission and
vision, but the value to the customer is
contained in the work performed by highly
trained, talented and capable associates.
The SLP leadership team simply provides an
environment and support that allows for our
associates to succeed in the execution of these
requirements. Our plant has an Open Door
Policy, which allows our associates to take a
problem to any member of leadership at any
time. The SLP Leadership team participates in
the Maytag University Leadership Institute
programs. These programs are aligned with our
Maytag Leadership Philosophy, which means
achieving results through people. The
purpose of these programs is to provide an
opportunity for Maytag leaders to learn how to
be more effective, maximize performance and
to create an environment that allows all
associates an opportunity to grow and develop.
Planning and Deployment
The senior leadership team utilizes a
planning tool referred to as the Factory Master
Plan (FMP). This FMP is the basis for
deployment of the goals and responsibilities we
have at our site. The FMP identifies and
prioritizes key projects, key performance
9. Searcy Laundry Products
3
- Lean Dryer Line (3/24/03)
Opened 14,600 sq.ft.
Reduced WIP $17,524
TCV Return: $46,460
- Lean Washer Line
Reduce Area WIP
Free up 47% floor space
(31,000 sq.ft)
(2Q03)
Migration Plan (2003)
- Eliminate Flatline System
(4Q03)
- Remove old wet/E-coat
paint systems to free up to
20,000 square feet for future
capabilities (4Q03)
Maytag
Searcy Laundry Products
PLASTICS
- Move dryer line to same building as washer line
- Creates consolidated laundry facility
- Opens up 60,000 sq.ft. for future assembly line(s)
Future Manufacturing Capabilities
NEW
FINISHING
SYSTEM
NEW
FINISHING
SYSTEM
NEW
FINISHING
SYSTEM
- Move creates area for Future Assembly Lines
- Utilize old Paint Area for New Finishing System
- Can be used for current or new platform production
Maytag
Searcy Laundry Products
Fig. 1.2: Generalized plant layout shows the facility before the lean vision changes
Fig. 1.3 Generalized plant layout shows the facility lean vision implemented.
Note: shows an open area for new assembly lines.
10. Searcy Laundry Products
4
measures, and outlines a roadmap to achieve the
future state described in the vision. (see Figures
1.2 & 1.3)
Our Lean Execution Plan (Hoshin), outlined
in large part by the FMP is developed through
the P&R (progress and review) process with our
partners in business and continuous
improvement; TBM Consulting, of Durham,
North Carolina. The P&R is a semi-annual
process by which our lean transition is reviewed
by the SLP senior staff and TBM. A calendar
of events for the next six months is finalized
and the proper consulting expertise is matched
to the event type. Typical events include:
• 2P (production preparation) Planning
• SMED
• Shop floor
• Business process
Impact on the value stream is estimated for
clarity and understanding to allow for
prioritization.
SLP’s commitment is demonstrated by the
allocation of our resources and the forming of a
separate department; the LSO (LeanSigma
Office) whose sole charter is coordination of
continual improvement activities in all types of
processes.
Our LSO Charter is:
The focus of SLP’s LeanSigma
efforts is to
show continuous improvement by achieving:
• 10% productivity gains; reducing hours/
equivalent unit from 1.44 down to 1.30
• 35% reduction in production square
footage/unit/shift allowing for additional
operating income from new opportunities
and product lines
• 50% reduction in nonconforming PPM
• Quantifiable safety improvements
• Accomplish all the above before 12/20/2003
The LSO utilizes its internal personnel in
concert with cross-functional teams in the
kaizen format to initiate rapid change. These
cross-functional team members are assigned by
the leadership team based on their expertise in
the area or their skills as change agents. This
dedication of personnel specifically for the
continuous improvement effort allows for cross-
training, employee empowerment, and
sustainable results.
All senior leadership team members,
including the site director, have either been a
team member or leader of week-long kaizen
events. The SLP senior leadership also
participates in events through daily attendance
at the team leader meetings and final report-outs
from the teams.
Associates not directly assigned to kaizen
team membership have opportunities to directly
implement continual improvement processes
through an exceptionally active Associate
Suggestion Program. The program allows
each associate (or team) to suggest changes to
any area or process. Successful implementation
is rewarded through a variable point system.
These points can be redeemed for various
Maytag brand and other merchandise. Team
suggestions are actually encouraged by means
of doubling the point value for suggestions with
three or more associate members. The program
is eight years old and has been responsible for
countless improvements in the areas of safety,
quality, and cost.
Knowledge Management and
Communication
The management and exchange of
information and business results to all associates
of SLP is accomplished through:
• Monthly Business Reviews
• Factory Master Plan Reviews
• Monthly Key Performance Indicator (KPI)
Reviews
• Monthly Round Table Discussions
• Monthly Presidents Perspective
• Monthly Newsletter
• Weekly Laundry Line
• Benefits Newsletter
• Weekly Stop-the-Line Meetings
• Bulletin Boards
• Daily/Weekly/Monthly Quality Reports
11. Searcy Laundry Products
5
• Daily/Weekly/Monthly Departmental
Reports
• SQCD Boards
SQCD boards (Safety, Quality, Cost, and
Delivery) are used to communicate key metrics
and opportunities for improvement. These
boards are part of the visual factory
management system. Each area has a board
dedicated to its efforts located on the shop floor
level. The goals and performance to the goals
are displayed daily so that everyone in the
organization can view them at any time.
Postings on bulletin boards and both weekly and
monthly publications carry information about
our lean transformation in articles included in
our ‘Laundry Line’ and ‘Newscene’ newsletters.
(See figures 1.4 & 1.5 below)
Fig. 1.4 Fig. 1.5
All meetings are designed to present
information to the associates and to allow
feedback and questions. The Director of
Operations conducts the monthly Business
Reviews and Round Table discussions with
support from senior leadership members. The
Business Reviews are for all associates.
Round Table discussions take place over
coffee and donuts with 8-12 different associates
each month. The Human Resources Manager
also participates in the Round Table discussions
and conducts surveys on how to make SLP a
better place to work. The popular Pike Street
Fish Market Video is viewed during the Round
Table discussions to encourage associates to be
involved and to have fun.
Innovations, Entrepreneurship,
Improvements Recognitions
SLP encourages and recognizes associate
innovations, entrepreneurship, and
improvements through:
• Associate Suggestion Program in which the
associates receive points to spend on
merchandise.
• Green Belt/Black Belt Certifications through
the Maytag certification program. Certified
candidates receive recognition at bi-annual
banquets in the form of plaques, exclusive
shirts and jackets, and Maytag stock options.
• Submittals to the U.S. Patent Office
IB. Empowerment
Associate involvement and empowerment to
deploy world-class strategies and practices is
evident in the “can-do” attitude of the SLP
associates in everything they do. SLP associates
have never been shy about expressing their
ideas on ways to make improvements but with
the introduction of LeanSigma®
and the
structured tool set it provides, associate
involvement is at a much higher level.
World Class Employee Training
The culture change associated with
increased associate involvement began with the
SLP leadership team participating in a Lean 101
training event held in January 2002. During this
training event, the leadership team was exposed
to the key lean concepts through classroom
instruction and simulation exercises and how to
apply them in Kaizen events and their everyday
activities.
With the help and guidance of an outside
consulting firm, SLP has incorporated their
developed lean training materials into a kaizen
day-one training program that is used in every
shop floor event.
12. Searcy Laundry Products
6
Over 40% of our associates have
participated in Kaizen events. We conduct
day-one training for some associates even prior
to participating in a Kaizen event. SLP is also
aggressively involved in training associates in
the Maytag Green Belt and Black Belt Six
Sigma programs. World-Class training to date
includes:
• 31 associates Green Belt trained including
all design engineers, manufacturing
engineers, production supervisors, and 82%
of the senior leadership.
• Two certified Green Belts through the
Maytag certification program.
• 2 associates Black Belt trained
• The Leaders Challenge
• LDP
Orientation Training
New hire orientation training has been
expanded to include an overview of
LeanSigma®
. All new associates participate in
the training which includes the following
categories:
• Company History
• Plant Procedures
• Wages and Benefits
• Quality Systems
• LeanSigma®
• Safety
Following the 10 hour new hire orientation
training, the associates receive 2 hours of basic
departmental orientation prior to starting 38
hours of on the job training.
On The Job Training
SLP conducts OJT using the principles of
the Toyota Job Instruction process in which the
trainer follows four basic steps:
1. Prepare the team member
2. Present the operation
3. Try – out performance
4. Follow – up
Each trainer is also responsible for
instructing the associate in the key requirements
of safety, quality, and TPM pertaining to the
particular job.
In addition to the training above, SLP has a
training procedure that meets the requirements
of ISO. Our training procedure provides a
system for developing and maintaining the
technical skills and competencies of the Maytag
– SLP work force. It establishes the
responsibilities for identification of training
needs, for design and delivery of appropriate
training and for maintaining appropriate records.
Teams
Teams at SLP generally fall into one of three
categories: safety teams, process improvement
teams, and associate activity teams.
Increased associate involvement in safety
programs is critical to the continued success of
our safety program. As a result, safety
involvement has been added as a key metric to
our Goal Share program. Safety involvement is
described as:
• Leading/conducting safety training in the
‘Stop-the-Line’ meetings.
• Serving as an exercise team leader.
• Participating on a Kaizen team and
implementing three safety suggestions per
team member.
• Participating on one of the following
committees:
• Plant Safety Committee
• Voluntary Behavioral Program Committee
• Job Safety Analysis (JSA) Committee
• Ergonomics Committee
• Work Hardening Regiment
• VPP Committee
• Machine Guarding Committee
• Press Safety Committee
• Departmental Safety Committee
13. Searcy Laundry Products
7
Each of the safety committee’s or teams
mentioned above function as a cross-functional
team with input from each member. The plant
Environmental, Health, and Safety (EH&S)
Manager serves as a facilitator/coach for the
teams. Salary and hourly associates alike
participate and lead these safety teams.
Process improvement teams can consist of
formalized Kaizen teams or simply cell
improvement teams. The typical Kaizen team is
made up of a cross-functional group of
associates that are identified and selected to
focus on improvements in a particular area
during a weeklong event. If the team can not
complete all improvement ideas generated
during the event week, an action items follow-up
list is generated and it is the team leader’s
responsibility to follow up with the team and
other resources as needed to complete all action
items. Cell improvement teams are informal
teams that work to make improvements in their
immediate work cell area.
Associate activity teams focus on
providing fun and social type activities to
improve morale, to celebrate accomplishments,
and to promote interaction of everyone.
Associate Suggestion Program
The SLP Associate Suggestion Program
encourages innovative and improvement ideas
from all associates, hourly and salary alike. The
system was designed and is updated and
maintained by a cross-functional team that
benchmarks other world class suggestions
systems. Key initiatives of the suggestion
system are:
• Focuses on continuous improvement
throughout the organization.
• Encourages the use of teams to solve
problems.
• Provides quick recognition to the associates.
• Supports the Goal Sharing program.
Over two suggestions per employee were
received during the past year with almost 50%
of them being implemented.
Goal Share Program
The SLP facility provides a goal/gain
sharing program for all hourly associates. The
monthly goal share award is based on meeting
key plant metrics in safety, quality, cost, and
delivery. Each of the categories has a baseline,
target, and stretch goal. Payouts increase as
greater improvements are achieved. An hourly
associate goal share team makes improvements
to the program each year. The team also
establishes the program goals each year along
with monitoring and communicating the results
each month as shown below.
Maytag Searcy Laundry Products
Final Test
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
MONTH 2003
FINALTEST(DEFFECTIVEPARTSPER
MILLION)
SCORE 13,092.00 11,202.00 8,334.00 8,300.00 6,983.00 9,582.20
BASELINE 16,366.00 16,366.00 16,366.00 16,366.00 16,366.00 16,366.00 16,366.00 16,366.00 16,366.00 16,366.00 16,366.00 16,366.00 16,366.00
TARGET 13,911.00 13,911.00 13,911.00 13,911.00 13,911.00 13,911.00 13,911.00 13,911.00 13,911.00 13,911.00 13,911.00 13,911.00 13,911.00
STRETCH 9,820.00 9,820.00 9,820.00 9,820.00 9,820.00 9,820.00 9,820.00 9,820.00 9,820.00 9,820.00 9,820.00 9,820.00 9,820.00
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC AVG
14. Searcy Laundry Products
8
Attendance Reward Program
Good attendance is necessary for any
manufacturing facility to be successful and SLP
has experienced a fairly stable and punctual
workforce over the years. However, with the
need for continuous improvement in all areas,
an Attendance Policy Kaizen event was
conducted to generate ideas on how to develop a
program to further promote good attendance.
The results of this event are an attendance
policy that:
• Creates a method of recognition and
encouragement.
• Is easy to understand and administer.
• Increases frequency of recognition for
associates with good or perfect attendance.
• Improves morale by providing an
opportunity to show associates that the
company appreciates their dedication.
• Increases incentive for associates with “so-
so” attendance to improve their attendance.
Although the new attendance policy has
only been in effect for a few months, most
everyone is pleased with the results so far.
Expectations are that we will continue to
realize improvements in attendance and we will
reach our goal of being better than 50% Bureau
of National Affairs.
Figure 1.7
Maytag Searcy Laundry Products
Absenteeism
0%
1%
2%
3%
%ofWorkHoursAbsent
Total 0.88% 1.02% 0.51% 1.12% 1.64% 0.82% 0.81% 0.98%
BNA Avg 1.50% 1.50% 1.50% 1.50% 1.50% 1.50%
Goal 0.75% 0.75% 0.75% 0.75% 0.75% 0.75%
2001 2002 Jan-03 Feb-03 Mar-03 Apr-03
May-
03
YTD
2003
GOOD
Snow
Days
16. Searcy Laundry Products
10
II A. Manufacturing Vision & Strategy
The vision for SLP’s Manufacturing is the
use of waste removal and organizational tools
of the Toyota Production system while
incorporating the disciplines of the Six Sigma
methodology to hone the skills and experiences
we have acquired over our 30+ years of
operation. Instead of a purist approach to these
approaches, we intend to select the tool set that
best suits the application at that particular point
on our lean journey.
Examples of this approach can be seen in
using the lean tools to create one piece flow on
the production floor thus removing the WIP in a
given area; but not removing traditional WIP
storage devices like lengthy overhead
conveyors. In this case, these conveyors are
truly multi-tasking and have value beyond first
inspection: They transport, (move press parts
from the east end of the plant to assembly) they
fixture (hold parts in the correct orientation for
powder paint and cure), and deliver (acting as
part presentation and sequenced to the rhythm
of the assembly line).
Traditional lean would tell us to remove
sources of part storage to reduce the work in
progress in these systems as well. At this point
in our journey, practical use of these
mechanisms outweighed the maxims
established by TPS.
Our entire facility flows materials and
processes from East to West. From raw steel
receiving to boxed finished goods leaving the
dock; material logistics weighs heavy into our
decisions to adapt our production system to the
new layouts of lean concordance described in
the FMP.
Early in our journey we set out to remove
waste even in our approach to transition. We
held factory vision events with deliverables to:
• Review value streams of the washer and
dryer products
• Plan the future state layout of the facility
o Dryer assembly
o Washer assembly
o Press/paint/fabrication
• Pull systems/logistics for purchased and
fabricated parts
• Schedule individual kaizen events to
facilitate change at critical points along the
value stream to remove non-value adding
activities and open up floor space for future
platform launches.
These events are taking SLP on the step by step
transition from current state to the future state
outlined in the FMP by setting smaller,
attainable goals and then standardizing the
results with:
• 5S discipline, to create a standard
environment.
• posted Standard Work, to create a standard
process
• TPM, to create standard equipment.
By implementing LeanSigma®
as a business
strategy, SLP has not limited its use of kaizen to
the shop floor. The time based philosophy is
shared outside the gemba by hosting off-site
events and inviting contractors and other special
guests to be members on a kaizen event team.
II B. Innovation in Market
Service & Product
SLP design engineers work on cost
reduction for the laundry equipment we
currently manufacture. To achieve product cost,
warranty and Service Call Rate (SCR)
reduction goals, their design practices utilize the
tools of:
• Quality Function Deployment (QFD)
• Design for LeanSigma®
(DFLS)
• Concurrent Engineering
The design engineering group also works to
support new model variant launches within
Marketing’s specified delivery schedule and
17. Searcy Laundry Products
11
budget.
Quality Function Deployment
SLP’s design group has recently adopted
and now utilizes the QFD methodology for the
deployment of designs where new systems are
being developed. We utilize this tool to:
• Know and understand our customer needs
• Write solid specifications to match those
needs
• Use QFD in conjunction with Design For
Manufacturability and Assembly (DFMA)
• Hit our product performance and reliability
objectives.
• Achieve our project schedule and cost goals.
The first project to follow this methodology
was the design of a new style belt tensioner for
the dryer product.
A select group of design and manufacturing
engineers, along with a visiting LeanSigma®
master black belt and a representative from the
Maytag marketing group, held an event to:
• Train on the process
• Implement and develop the mechanism
• Develop the production process in a
progression formally dubbed Design For
LeanSigma®
(DFLS).
In summary, we identified and acquired the
right resources and used the correct tools in a
method that removes waste from the
development process. The non-value added
steps of re-communication and re-design were
eliminated
Innovations in design include our use of
concurrent engineering. Our most recent use
of this powerful tool was in the design of a
polymer inner basket for the Genesis washing
machine.
Including the mating parts, the new models
required the major redesign of five large profile
polypropylene plastic injection molded parts.
These parts have interlocking fits to each other
and the design must consider process variation
inherent to injection molded parts.
Challenging projects like this one can be
daunting to a design team. SLP (and its ‘can
do’ attitude) progressed into the task armed with
the proper tools and talent to accomplish the
mission.
Pro-E powered CAD/CAM allowed for
parametric design of these parts in the virtual
world of computer modeling. With subsequent
mold CNC machining operations being
controlled using solid model data, changes to
one part during the design process updates all
the mating parts, surfaces, and mold design
specifications.
The tools of LeanSigma®
are then utilized in
to address the natural variation and the normal
distribution of dimensional values that exist in
any process. The design team used
classification of characteristics (CofC‘s) and
statistical tolerancing (StatTol) to setup values
for critical to quality features.
Fig 2.1The above rendering shows stress
concentrations in the plastic spin basket under
out-of-balance load conditions.
Computer models were also used in the
process of Finite Element Analysis (FEA), to
determine strengths and weakness properties
with the design. This process removes the muda
of costly and time consuming prototype part
development and testing. The product was
launched on a much shorter schedule and at
lower cost than similar past projects.
18. Searcy Laundry Products
12
Competitive benchmarking gives us
important analysis opportunities and insight into
the very spirited appliance market. The tools of
Competitive Design Analysis (CDA) and
Competitive Information Analysis (CIA) are
used to dissect the cost and quality potential of
our competitors.
CDA activities are lead by Maytag Newton
and supported by each laundry site. In CDA
events, design engineers use the following
procedure to better define the actual nut & bolts
of a competitors product:
Value Line Dryer
Searcy GE Frigidaire W hirlpool
Performance
Ease of Use
Capacity
Noise
Appearance
>>> Competitive Advantage
>>> Parity
>>> Competitive Dis-advantage
Value Line Washer
Searcy GE Frigidaire Whirlpool
Performance
Suspension
Ease of Use
Capacity
Noise
Appearance
>>> Competitive Advantage
>>> Parity
>>> Competitive Dis-advantage
Maytag CDA Summaries: Feature Reconciled Cost
Product Family: Washers - Value Line
CDA Date: December, 2000, WAGE JAN 2003
Manufacturer Maytag Whirlpool Whirlpool General Electric Frigidaire Amana
Manufacturer Location Herrin, Il Clyde, OH Clyde, OH Louisville, Ky Webster City, Ia Searcy, Ark
Model PAV2300 20712 LSQ8543 WSSE4220 FWS446GHS ALW480
Style Vertical Vertical Vertical Vertical Vertical Vertical
Brand Maytag Performa Kenmore 70 Ser WP Ultimate Care GEProfile Frigidaire Amana
Material 133.31 134.44 129.83 198.17 146.06 154.52
Labor & Burden 61.27 84.34 83.47 76.14 63.35 131.90
Total ZipCost 194.58 218.78 213.30 274.31 209.41 286.42
ZIP Hours 1.16 1.60 1.58 1.44 1.20 2.50
Labor / Burden Rate 52.80 52.80 52.80 52.80 52.80 52.80
Site Conversion Rate Same 56.65 56.65 59.00 46.35 43.25
Site Labor and Burden Same 90.49 89.56 85.08 55.61 108.04
Projected Cost @Site 194.58 224.93 219.39 283.25 201.67 262.56
• Mechanical tear-down
• Manufacturing method analysis
• List value added/non value added
parts/processes
• Quotes and estimates for
o Fabricated Parts
o Purchased components
o Labor/overhead
• Estimate SCR for design
• Tabulate cost/performance model for design
Fig 2.3 The graph above shows a graphic comparison of the strengths and weakness of our competition.
Fig 2.2 Competitive data is gathered, tabulated, and analyzed.
19. Searcy Laundry Products
13
II C. Partnering with
Suppliers/Customers &
Environmental
Procurement of quality materials at
competitive prices is critical to our ability to
meet and exceed our customers’ expectations.
Procurement processes are defined and
implemented according to our ISO 9001 Quality
Management System.
Supplier Relationships
We believe that partnerships with suppliers
form a symbiotic relationship. Both parties
benefit from working closely and directly on
issues regarding cost, quality and delivery. One
of the best examples of the importance of this
relationship is with the supplier of our largest
volume commodity: coil stock steel.
Ryerson-Tull (R-T) is in the business of
connecting end-users (like Maytag) with steel
mills, coil converters, and blanking houses to
provide a steady and reliable source of raw steel
material for fabrication into finished goods for
the consumer market. R-T is, for all intents and
purposes, the sole source supplier for carbon
steel material to SLP.
Maytag has implemented procurement
processes to insure that we provide our suppliers
with accurate information regarding our
procurement requirements. This allows our
suppliers to supply us with the materials that we
need, when we need them and at a competitive
price. These include:
• Purchase document approval process that
ensures that we clearly define our
requirements to our suppliers
• Assessment of suppliers processes to
determine how we will evaluate their
performance
• Supplier quality plan process that defines
how we conduct:
o New supplier part qualification
o First Article Inspection Instruction
o Receiving Inspection/Skip Lot
Instruction
These processes are audited on an on-going
basis during our internal quality system audits
and by an external third-party auditor, to ensure
that we consistently follow our own procedures
and provide our suppliers with accurate and
complete information.
R-T partners with Maytag by:
• Sharing metallurgical resources and asking
for internal feedback from us to clarify
performance specifications and address
customer dissatisfaction quality issues
• Establishing an annual 6% cost reduction
target in usage, scrap, and fallout metrics.
• Implementing an electronic kanban system
for systematic use/replenishment of coil
stock material to improve delivery and
inventory cost measures
In addition we utilize the following
methods of promoting partnerships with our
suppliers:
• Channels of communication between
Maytag and our suppliers are defined and
clearly expressed in order to avoid possible
miscommunication
• We solicit feedback from our suppliers
regarding any issues relative to the provision
of materials
• We have implemented an electronic kanban
system for the systematic use/replenishment
of coil stock material to improve delivery
and as an inventory cost measure
• We provide feedback to our suppliers
regarding their performance through our
Supplier Scorecard System.
Cooperative Benchmarking
Our plant is one of three laundry facilities
within the Maytag system of factories. There
are facilities in Herrin, Illinois and Newton,
Iowa that conduct business much the same way
we do. The associates at those other sites face
similar challenges, both technical and business-
related. We exchange experiences between
departments and plants about many of our
processes.
20. Searcy Laundry Products
14
An example where benchmarking was
beneficial to the Maytag Corporation was in the
comparison of shop floor quality process.
Quality engineering representatives from each
of our three laundry plants met for an event to
benchmark best practices at each site for Final
testing and Customer Audit Testing (CAT).
The team completed site visits to each factory
floor where they gathered and analyzed data for
possible correlations between testing method
and SCR.
Some technologies are shared within the
corporation including other appliance sites such
as refrigeration (Amana, Iowa), public vending
(Dixie Narco, Williston SC) and Cooking
(Cleveland, TN). SLP’s initial exposure to the
kaizen LeanSigma®
culture was during a week
long site visit to our dishwasher plant in
Jackson, Tennessee.
SLP also sees the value in visiting
manufacturers of other products besides major
appliances. Our visit to Harley Davidson in
Kansas City, Missouri to observe and exchange
ideas about High Performance Work Teams was
valuable to our understanding of the next
progression in associate empowerment.
Customer Partnerships
Our plant Quality Policy,
“Maytag Searcy Laundry Products is
committed to industry leadership in meeting
customer expectations and needs through
dedication to continuous improvement in
quality, cost and delivery.”
SLP has defined several different categories
of customers:
• Retail customers
• End consumers
• Internal customers
• Corporate customer (Maytag)
The Maytag marketing group (located in
Newton, Iowa) works with retail customers and
design engineering to offer washer and dryer
products with different feature sets and color
combinations tailored to customer requests.
SLP’s products are designed in such a way that
minor changes to a working chassis and
distinctive control assembly easily differentiate
one model from another. Prohibiting same
models to different retail customers discourages
price matching.
The Marketing group also works with the
end consumer to understand requirements and
customer satisfaction issues. The marketing
group feeds appropriate information to SLP for
additional analysis and action.
SLP’s primary customer responsibilities are
associated with internal customers and the
Maytag Corporation. We have developed and
implemented processes to control the activities
associated with the acceptance and fulfillment
of corporate orders. These processes are
documented in our ISO 9001 Management
System and are audited for compliance on a
planned schedule. Corrective actions are
implemented when discrepancies are identified.
SLP has developed processes that are
designed to increase awareness of internal
customer requirements. Examples of activities
that increase internal customer satisfaction
include:
• Rolled Throughput Yield
• Cross-departmental teams that allow new
perspective
• Shop floor kaizen events
• Plant-wide communication efforts:
o Monthly, weekly, and daily meetings
with all levels of operations that shares
critical to quality information
o Postings on the bulletin boards
o Job rotations within work cells
Associate Safety
“Safety First” mentality of our associate
workforce is in part due to an extensive training
and awareness program. However, even the
best of safety program roll-outs can not succeed
without a dedicated and empowered workforce.
Our associates practice good safety techniques
even during the most mundane and casual of
21. Searcy Laundry Products
15
shop floor activities.
In 2002, SLP was
awarded the
Voluntary
Protection
Program (VPP)
“Star” status from
OSHA. VPP
participants are
recognized by
OSHA for establishing and maintaining
excellent safety and health programs within
their workplaces and are considered models for
their respective industries. OSHA’s “Star”
status is awarded to exemplary work sites that
have implemented comprehensive and
successful safety and health management
systems with injury/illness rates below their
industry’s national average. Only 850 work sites
have achieved this prestigious recognition out of
a total 7 million work sites in the United States.
SLP is the first and only laundry facility in
the United States to achieve this distinction.
Environmental Responsibility
SLP uses powder paint exclusively and has
removed all wet-paint processes from our
production floor. By doing this, we reduced the
hazardous waste we produced and eliminated
the need for a Title V air permit.
SLP eliminated hexavalent chrome sealant
in our wash/pre-treat system that preps raw
metal for the powder paint process.
SLP scored 4.82 on a scale of 5.00, higher
than any other plant within the Maytag
system of factories on the corporation’s
comprehensive safety audit.
Community Partnering
SLP and our associates are very active and
concerned community citizens. SLP is located
in the small town of Searcy, Arkansas
(Population of 19,000). However, a number of
our associates live in smaller communities
within White County and several surrounding
counties. Within this area, there are numerous
opportunities for Maytag, as well as our
associates, to provide voluntary and monetary
support and services to many local civic and
charitable organizations and activities. Several
examples of Maytag activities are included in
the figure 2.4.
The above list does not include the variety of
other programs in which our associates are
involved. A few examples of non-business
related activity involvement includes:
• School board and PTA members
• Volunteer fire departments and first
responders
• Community youth baseball and softball
programs
• CASA volunteer (Court Appointed Special
Advocate)
• Boy Scout and Girl Scout Leaders
• Chamber of Commerce Board
• United Way Board
• Lions Club
• City Council
• Community Innovation Award
• Christmas 4 Kids volunteers
• Church and community functions
Educational Partnering
Maytag SLP works closely with local
educational institutions, including several public
schools, Foothills Vocational Technical
Institute, Arkansas State University-Beebe, and
Harding University. Each year numerous
students from these schools tour our facility.
Each semester students from Harding
University’s Production Operations
Management class tours the facility and visit
with local management to discuss career
opportunities in the manufacturing field.
Foothills and Maytag have established an
educational/training program for providing the
necessary skills for industrial maintenance and
tool and die candidates. The majority of all
entry-level maintenance and tool and die
positions are filled by candidates who are
enrolled or have completed the programs at
22. Searcy Laundry Products
16
Foothills.
The Maytag Foundation annually awards
scholarships to high school seniors who are
dependents of associates who are attending
Arkansas State University. These scholarships
are offered only to select two-year colleges near
Maytag communities. The 2003 school year was
the second year for Searcy to participate in this
program and we are excited that Maytag has
awarded two scholarships each year. All phases
of the competition, including selection of
winners and payment of the $1,000 awards, are
handled for Maytag by Arkansas State
University-Beebe.
Product Donations
Searcy Children’s Home
Arkansas Sheriff’s Youth Ranch
Riverview Public Schools
Searcy Public Schools
Searcy Fire Department
Paragould Children’s Home
Financial Donations
Searcy Children’s Home
Searcy School of Dance
Arch Street Theater
White County Fair
Arkansas State Trooper Association
CARTI
American Cancer Society – Relay for Life
American Red Cross
Children’s Miracle Network
Red Ribbon
Drug Awareness Program
Arkansas Sheriff’s Youth Ranch
World of Work – SHRM
Judsonia Public Schools
McRae Elementary School
Friends for Life
Educational Partnership
ASU – Vision 2000
Harding University – American Studies Institute
Foothills Vocational Technical School Advisory
Boards
Searcy Public Schools – Be A Winner Program
Sponsor of Community Activities
& Events
Searcy Lion’s Club
Searcy Rotary Club
Searcy Noon Optimist
Searcy Kiwanis Club
Center on the Square (Kid’s Stage Corporate
Sponsor)
East Bay Sports Youth Basketball Team
Girl’s Softball Team Sponsor
Searcy Fire Department Ladies Auxiliary
Searcy Youth Baseball – World Series Sponsor
Searcy Business Expo
Searcy Adult Softball Association – 2 Teams
Christmas for Kids
23. Searcy Laundry Products
17
II D. World-Class
Manufacturing Operations &
Processes
SLP utilizes LeanSigma®
as an improvement
strategy that:
• Reduces lead time in all processes:
o Manufacturing - by integrating
subassembly cells into our main lines,
thereby creating flow.
o New product development - as with our
transmission assembly process.
o Administration - like the process of
improving our attendance policy and its
subsequent implementation.
• Improves quality by reducing variation in all
types of process.
• Establishes a competitive advantage that
will enable sales and profitability growth.
• Builds a culture where involvement and
mutual respect encourage continuous
improvement.
Examples of implementation and
sustainment prevalent in areas touched by
various continuous improvement events are as
follows:
Value Stream Mapping
Our value stream maps (both current and
future states) were created during an initial
assessment of our strengths and opportunities
for lean transformation. The current state map
we created at that time has become a
benchmark for historical reference. Current
state maps are updated upon the completion of
certain milestones. We have learned that the
more lean tools we utilize, the more
opportunities we discover, thereby making our
future state maps dynamic as well.
SLP utilizes the future state maps to help
create a vision which allows us to tactically
sequence events that are focused on strategic
impact regarding two key components of
manufacturing:
- Material Stagnation – including raw, WIP,
and finished goods
- Information Stagnation - including forecasts
(not firm), release (firm) and production
instructions
What we determined from the VSM’s is not
surprising in that they verified existing
monuments. These large, immobile and multi-
process machines were simultaneously strengths
and challenges that manifest themselves as
bottlenecks (Theory of Constraints). In
particular, the VSMs identified the need to:
• Reduce the cycle times of our current lines
and implement several lean lines with less
variation for improved flexibility
• Reduce lead time for internal processes
• Free up square footage needed for
implementation of other product types.
Value Analysis
SLP traditionally followed non-lean thought
processes of “bigger, better, faster”. Operator
cycle times were driven down by running faster
and adding more ‘bodies’ (not associates) to
meet the higher production rates (the concepts
of takt time and excess WIP were foreign to the
SLP facility). Assembly lines were overly
designed, excessive in length and heavily
manned to accommodate “just in case” increases
in customer demands.
For example, the dryer assembly line in
1997 processed 2200 units / 10 hour shift on a
330’ long assembly line with variable unit pitch
(or, the distance between products on the
conveyor). Operation cycle times at that time
were as low as 15 seconds.
Following a value analysis and
implementation of changes, that same assembly
line today is only 235’ long (30% shorter) and is
now mechanically timed so that the unit pitch is
at a controlled distance. The line is paced to a
takt time of 30 seconds and balanced to address
identified upstream constraints in the press and
paint departments.
24. Searcy Laundry Products
18
Current State Value Stream Map
(Copy w/o kaizen clouds for clarity)
Maytag Laundry Products (Searcy)
4/8/02
Current State Map - 4/2003
C/O = 60’
2 Part Nr.
Cylinder Welder
1 Operators
1600
Kanban Visual Cy cle
Count by Metal Fab
Superv isor
24
Base leg bolt m/c
1 Operator
REJ 15
WIP 87
Interior Powder Paint
2 Operators (load/unload)
C/T = 7 ‘
4
Front
BulkheadLoad
1 Operator
MRP Run (2X Weekly )
Daily Assembly Schedule
(4 Day Frozen)
Vendor Schedules
Production Supervisors
To Metal Fabrication
Superv isor
Metal Fabrication
Schedule
1.5 Days ahead of
Assembly
C/O = 15’
Heater Box
Crimper
1 Operator
53,500
Cabinet load
2 Operators
REJ 3
REAR
BLKHD LOAD
1 Operator
Canadian models
1 Operator
Ex Duct
Welder
1 Operator
360 WIP
Rear Bulk
Head Carousel
3 Operators
REJ 15
WIP7
Roller Bracket
1 Operator
C/T 7"
Idler Washer
Roller Bracket
Idler Dryer
600
4300
W/H Install Term
Blk Wire Clips
1 Operator
6
Motor/Blower
Load
1 Operator
1
Motor/Blower
13 WIP
2 Operators
C/T 40"
Lead Time
468"
Motor Wiring
1 Operator
Idler Assy
1 Operator
1350 Inventory
Motor Bracket
Assy
1 Operator
Cylinder Load
1 Operator
Baffle Machine
109 + 300 Storage Line
10
6
Air Duct Assy
1 Operator
Felt Seal &
Glide Brkt
1 operator
Top Load
1 Operator
WIP 38
Front Panel
1 Operator
WIP 45
Control Panel
Wiring
2 Operators
Control Panel
Sub-Assy
3 Operators
7
Serial Plate
1 Operator
Serial Plate
1 Operator
Test Wheel
3 Operators
20 WIP
Repair
Booster/UT
Audit
1 Operator
3WIP
Literature
1 Operator
Subassy Hoodbacks
Door Strike Line Jobs
1 Operator
Crating
3 Operators
Fork Truck
1 Operator
4 4 12
Retailer
Sales Forecast
Order EntryProduction PlanMaster Schedule
Warehouse
Distribution
Center
Stacker
200
Top Pre-Assy
1 Operator
Door/Liner
Machine
1 Operator
Front Panel Pre-
Assy
2 Operators
36
4
0
0
Inv 81
Inv 396
Access Panels
1 Operator
57 inv3
109
Steel
5 Day s
Paint
Line
Load Cure
Ov ens
Cooling
Tunnel
3 Utility
1 Lab Tech
2 Maintenance
2 Paint Operators
1 Group Leader
3 Parts Transfer
1 Sander
Dry
Cooling
Tunnel
Cabinet
Paint Booth
Top/Lid Paint
Booth
Exterior Paint Line
ToAssy
~
10 Part Nr.
Auto
Blow
2 Operators
C/O = 60’
53,500
2 Part Nr.
Blow
600
Manual
4 Operators
C/O = 60’
4000
C/O = 60’
1 Part Nr.
Verson
Hand
Fed Line
4 Operators
3000
2300
C/O = 15’
Cabinet
Line
3 Operators
C/O = 45’ to
360’
12 Part Nr.
47A
1 Operator
17,000
C/O = 60’
3 Part Nr.
48A
1 Operator 65,000
C/O = 30’
3 Part Nr.
Transf er
Press
4 Operators 10,000
C/O = 60’
2 Part Nr.
Blow
400
Manual
2 Operators 1400
C/O = 60’
2 Part Nr.
Inner
Basket
Cell
4 Operators
1600
Metal Stamping
Leg
Milkstool
Weld
1 Operator
Piv ot
Dome
Weld
1 Operator
4
180
2 Colors
1 Color Change/Week
3 Hour Color Change Over
C/T = 2 hrs
Wash
Cure
Ov ens
Daily
105 10
Spring
Install
3 Operators
1 Booster
28
Motor/
Pump
Install
1 Operator
Hub to
Tub Cell
8 Operators
1 Booster
12 Units
Milkstool
Install
2 Operators
12
Outer
Tub Assy
1 Operator
Bearing
Housing
Sub-Assy
1 Operator
2300
2 Operators (load/unload)
C/T = 7 ‘
Stacker
5 30 14 10 6
100%
Test
3 Operators
Final
Assy
2 Operators
1 Booster
Packing
Line
3 Operators
Front
Panel
Install
1 Operator
Lid
Install
1 Operator
8
Control
Panel
Install
4 Operators
21
Cabinet
Assy
7 Operators
1 Booster
Transmission
Sub-Assy
4 Operators
1 Booster1300
WIP = 9
Brake
Sub-
Assy
2 Operators
175
Motor/
Pump
Sub-Assy
5 Operators
1 Booster
WIP = 52
3
Tub-Cover
Sub-Assy
2 Operators
10
Water
Valv e
Sub-Assy
1 Operator
720 5
33
Control
Panel
Pre-wire
1 Operator
Control
Panel
Sub-Assy
5 Operators
WIP = 11
764
33 Fail/Day
17
Rework
2 Operators
WIP = 607
Outer Tub
Bottom
Pre-Assy
1 Operator
Cardboard
Base
1 Operator
4
FromExterior
Paint
~
8
WIP = 24
3
Front
Panel
Sub-Assy
4 Operators
4
Base
Clinch Nut
Install
1 Operator
Leg Bolt
Jam Nut
SLL Welder
Sub-Assy
1 Operator
Base
Tox
1 Operator
24
600
185
300
850
6
Lid
Sub-Assy
5 Operators
Lid
Switch
Sub-
Assy
1 Operator
Lid
Pre-Assy
1 Operator
TOP CELL
From Exterior
Paint
~
Fork Truck
1 Operator
Motors
Motors
Harness
Paint
Hardw are
Gear
Boxes
Electronics
Steel
Suppliers
Plastics
C/O = 60’
2 Part Nr.
A07
Automatic
Press
1 Operator
1600
~
Stainlessto
Assy
C.R.S. toPow
der Paint
FAX
FAX
Future State Value Stream Map
Steel Supplier
Electrical Supplier
Harness Supplier
Hardware Suppliers
Paint Suppliers
Motor Suppliers
Resin Suppliers
Vendor
Schedules
1
Day
RM$
1
Week
RM$
1
Day
RM$
1
Week
RM$
1
Week
RM$
2
Week
RM$
P
Fab
W
Interior Paint
Exterior Paint
Molding
Assembly
Daily On Line
Deliv eries
P
Packaging
Warehouse
Shipping
CUSTOMER
Loc:
War $:
OTD%:
Returns:
Orders/
Wk:
Del.Freq:
RDC
MRP Run
(2X
Weekly )
Daily
Assembly
Schedule
Master
Schedule
Production
Plan
Sales
Forecast
Order Entry
Figure 1.1
Figure 1.2
25. Searcy Laundry Products
19
From this, we were able to see that properly
balancing the line to takt time helps us avoid the
wastes of
• Overproduction
• Excessive transportation
• Inventory
• Waiting
• Underutilization of People
• Excessive Motion
Breakthrough Kaizen Events
(Kaikaku)
Our Kaikaku event was our initial vision
event where we gathered the key members of
leadership and discussed the SLP site of the
future. In the event we:
• Utilized our value stream maps
• Discussed drivers for change
• Assigned leadership for the change
• Planned communication paths about change
• Discussed how we would train and educate
all personnel so that we would all have one
common vision
• Completed a “Treasure Hunt” process where
we looked through “Lean Eyes”
• Described what we liked and what we did
not like about our site.
Then the team began to view improvement
opportunities from a “10,000 foot level”. The
team started with a current state schematic of
the site and then created a graphic vision of the
future layout.
The final step was to put together a plan to
indicate how our plant would change with the
recommended improvements.
Systematic Identification and
Elimination of all Forms of Waste
SLP utilizes the kaizen event format and the
Six Sigma DMAIC (Define, Measure, Analyze,
Improve, and Control) roadmap to system-
atically identify and eliminate waste on the
product value stream map.
We look at cell and machine capacity
constraints and capabilities to establish a
sequence for kaizen events. From this
sequence, an event calendar is compiled for
efficient scheduling of resources.
Wastes (muda) are identified and defined by
the team members who conduct time
observations on multiple operators to identify
variations in operator work.
Identification and elimination of waste was
the focus of a shop floor event to improve the
Washer Top/Lid cell. Outcomes of the event
included:
• Better workplace organization with foot-
printed and labeled part and tool
presentations at each station
• Removal of an inefficient 90º automated
transfer (pick & place) machine to eliminate
excessive downtime and NVA
• Feedback of cosmetic quality issues to the
paint line to improve an internal supplier
quality issue
• Elimination of a direct labor position
• Development and posting of standardized
work.
Just-In-Time Manufacturing
During kaizen shop floor events, the LSO
emphasizes three key principles of Just-In-
Time:
Figure 1.3: Typical kaizen team photo
26. Searcy Laundry Products
20
• Pacing to takt time
• Creating one piece flow production
• Incorporating a “pull” system.
These tenets of the Toyota Production
System have been used by SLP to help guide
teams to improve their work areas.
Every shop floor event starts with associate
training in the principles of waste reduction,
work place organization.
Simple calculations are performed for
determining the takt time (in seconds) for a
particular product line. Time observations are
performed and work content is sequenced and
balanced to meet takt time within each cell.
The team sets up workstations and paces
each line and subassembly to meet the
calculated takt time by varying mechanized
conveyance accordingly. Once paced, the team
reduces the footprint so that only standard work
in process (SWIP) will fit into the cell. For
example, the washer control panel was the site
of the first kaizen breakthrough waste reduction
event. The cell layout began as a sub-assembly
incorporating (2) conveyors (1 for assembly and
1 for a WIP buffer) that occupied a large
footprint not paced to takt time.
Within three days, changes were
implemented to feed the subassembly directly
into the main assembly line. Utilizing a
conveyor drive that matched the speed of the
main line (takt time), WIP between the control
panel assembly process and main line was
eliminated. A signal was set up to “pull” pre-
assembled units through the process.
5S Standards and Disciplines
It has always been SLP’s opinion that
housekeeping is a crucial mission objective.
However, the discipline, organizational
techniques and value of a “true” 5S program
were not fully understood. We now emphasize
that 5S is fundamental to our LeanSigma®
journey.
We began by conducting hour-long training
sessions with all associates to establish goals,
expectations and give a general overview of the
5S concepts. This generalized training was
completed shortly before the kaizen
methodology was introduced to SLP. We
continued 5S training and implementation of
principles during our shop floor kaizen events.
Associates are expected to carry on and
maintain the levels established during the event.
We have learned that sustaining improvements
is a difficult, yet key, aspect of the program.
We have a 5S steering committee that
randomly audits areas within the facility on a
monthly basis. Results of these audits are
forwarded to the area supervision for
issue/countermeasure actions. Membership
within this steering committee is rotated so that
different associates get an opportunity to
contribute to the process. This allows for
individual growth and training of many
associates so as to become knowledgeable
practitioners and ambassadors for the process.
SLP’s daily commitment to 5S includes a
five-minute line shut down for each shift to
conduct designated 5S activities via a checklist
that emphasizes: “A place for everything and
everything in its place”.
Discipline is required to sustain a neat, clean
and organized environment within the SLP
visual factory management system and to solve
more difficult issues like systemic quality
issues.
Standardized Work
Standardized Work implemented on the
shop floor includes:
• Cycle times of the workstation
• Takt time
• Sequential work elements using digital
pictures of each operator work element
• Elemental and total cycle times
• References to QCI (Quality Control
Instructions)
• Specific tool requirements
• Personal protection equipment and safety
concerns.
27. Searcy Laundry Products
21
Standard Operation Sheets are posted at each
workstation and are used as a training aid for
new operators. Every change to a workstation's
elements results in the revision/re-creation of
the Standard Operation Sheets. Adherence to
standard work:
• Reduces variation in the operator work
methods
• Focuses on continuous improvement efforts
• Standardizes the best way to perform a job
(not just the way it has always been
performed).
We have found effective implementation of
standard work requires continuous training of all
associates – and, their commitment.
Total Productive, Preventive,
Predictive Maintenance
At SLP, TPM is a cooperative plan between
production and the core maintenance group.
These groups collaborate on the following
maintenance efforts:
• Productive
o Daily employee check list
o Tool & Die ready system
• Preventative
o Machine lube routes
o Annual & semi-annual press/fabrication
shutdowns
o O/H hoist and crane inspections
o Internal/exterior boiler inspections
o Gas train inspections and adjustment
• Predictive
o Thermography
o Vibrational analysis
o Oil sampling
o Water analysis
At SLP, as we continue to reduce WIP and
inventories, the importance of a good TPM
program will elevate. We have identified certain
pieces of equipment to be mission critical
through constraints analysis. Downtime data are
collected and analyzed to determine optimal PM
schedules for those cells.
With reduced inventories, especially
between Fabrication presses and assembly, our
ability to meet production goals will depend on
the reliability and effectiveness of the
machinery and our ability to keep our
equipment in “like new” condition.
The purpose of our TPM program is to:
• Improve equipment uptime
• Increase manufacturing effectiveness
• Increase operator knowledge of the
equipment
• Increase maintenance knowledge of the
processes
• Improve product quality
Visual Workplace / Visual
Manufacturing
SLP has embarked on the visual workplace
journey by first reducing the size of the Dryer
Line and then implementing a straight flow line
that can be seen from one end of the line to the
other. SLP utilizes many different avenues to
meet the goal of ensuring that anyone can walk
into our facility and recognize the difference
between what is “normal” and what is
“abnormal” without having to talk to someone
in the facility. Examples of this "Visual"
management system include:
• Color-coded returnable packaging to
denote product type and reject bins
• Shadow boards indicating where
parts/tools should be located
• Andon signals strategically placed on the
line for rapid response to abnormalities
• Floor paint to indicate material storage
locations and kanbans.
Quick Changeover or Set-up
Reduction (SMED)
SLP utilizes the “Pit Crew” mentality of
SMED to reduce downtime and improve
utilization of existing equipment. Maytag (SLP)
has implemented the SMED (Single Minute
Exchange of Dies) methodology in our
28. Searcy Laundry Products
22
Fabrication Department. As a result of a kaizen
event, many improvements were implemented:
• Lead times for single operator set-ups
were reduced from 49.02 minutes to 20.10
minutes for a 59% reduction
• Other forms of waste were discovered and
eliminated by means of implementing
Poka Yokes and standardizing work
content
• An average of 5 minutes per set-up spent
cleaning up slugs from floor was
eliminated by adding a metal chute that
prevented the slugs from falling between
the press and the dumpster
• Individual operator and lift driver work
content was standardized and posted on
Standard Operation Sheet
• Die plates were modified to accept a 2”set-
up block at every hookup location on all
dies
The reduction of set-up lead times and the
elimination of other forms of waste gave us
more flexibility. These reductions allow us to
better meet our customers’ demands and needs.
Autonomation (jidoka) and
Multi-process handling
SLP has saved labor, improved productivity
and improved quality by using autonomation.
An example of this concept is the Orbital Shaft
Former machine project. In this project, we
removed a threaded connection and replaced it
with a ‘fastener-less’ connection process called
orbital forming.
Before this process was centralized, three
separate operators accomplished the task of
joining shafts to brackets. This machine,
designed to be multi-processing, now makes
three different product types utilizing only one
operator. This machine also takes SMED to the
extreme by utilizing a universal fixture with one
die can be used on all three product types.
We built this machine in-house employing
degree of autonomation that used manual
loading, but utilized an automatic unload device
(hanedashi) for improved efficiency. This
allowed us to use the machine as a load-load
(chaku-chaku) device.
We designed in poka yokes including:
• Parts can only be inserted into the fixture in
the correct orientation
• The ram height is controlled by limit
switches to eliminate over or under forming
• A light curtain was installed to disallow
operator interaction with the machine during
cycle where operator safety may be
jeopardized.
Pull Systems Integration through
the Production Sequence (Use of
kanbans)
The creation of flow within our production
system is a logical progression throughout the
general layout of facility. Raw materials are
received in the rear (east end) of the factory and
finished goods are shipped from the front (west
end). The processes follow an east to west
succession from press, through paint, assembly,
functional testing and finally into the warehouse
for shipping. Components from the SLP pull
system include:
• An electronic bar-code system kanban used
to restock fasteners and coil steel inventories
• A min/max visual kanban system to manage
the run schedule of certain press operations.
• Supermarket racks for purchase parts are
used line side to supply workstations
• Two-bin part presentation modules at many
of the workstations are used by boosters
(water spiders) to replenish part supplies in
our assembly cells.
While we have implemented good systems
for the management of raw and component part
levels, our improvement efforts will drive future
enhancements in signal-response flow systems.
29. Searcy Laundry Products
23
A planning event (held earlier this year)
took a “10,000 ft view” of our value chain in
terms of pull systems expansion. The event set
implementation goals, champions and timelines
for:
• Signal based kanban for press operations
(not visual or cadenced with coil output)
• Signal based purchased part replenishment
from the majority of our external vendors
• Stockroom part locations by assembly cell
layout and route-based delivery from stock
room to line side supermarkets.
• Eventual departure from forecast-based
production scheduling and model demand
based on historical order data.
Cellular Manufacturing and
Continuous Process Flow
We develop work cells around logical
subassemblies. The motor/pump cell is an
example of a pre-assembly cell that feeds the
main line via pull signals from that line. During
a shop floor event, we accomplished the
following:
• Created pull by re-programming a non-
synchronous pallet system to advance on an
electronic signal from the assembly line
• 20% Reduction in personnel
• 25% Increase in productivity
• 31% Improvement in floor space
• 93% Reduction in rejects/day with
• (5) Poka yokes implemented.
This cell was located close to the line so that
completed units can be placed on the main line
utilizing one-piece flow. Before the event,
finished subassemblies could build up as work
in progress inventory.
We have integrated many sub-assemblies
into our main assembly lines and have
incorporated one-piece flow in those cells.
However, it will be challenging and costly to
integrate the remaining “monuments” from pre-
lean days into cellular manufacturing for the
main lines.
Distributing Work Intelligently
and Efficiently
(Heijunka or Load Leveling)
SLP’s ability to provide our consumers with
the product they want, when they want it, and
where they want it, while maintaining
production levels to meet demand, is essential to
profitability. Our demand horizon is based upon
our annual business plan (ABP). Monthly
volumes are taken from the ABP and translated
into takt times or consumer demand. Monthly
sales and operating plan (S&OP) meetings help
us to manage production while our scheduling
model is still forecast driven.
The future objective of the laundry group is
to become closely integrated with our customers
and vendors. To accomplish this task, we will
electronically link demand signals that will be
immediately seen by all value stream partners.
SLP’s current objectives for Production
Smoothing include:
1. Build any model required, any day, with run
sizes ranging from 10 to 900 units (12
washer SKUs and 17 dryer SKUs).
2. Adjust takt time to minimize overproduction
and muda from increased inventory.
Mechanically pace assembly to control takt
time.
3. Manage a balance between day & night
assembly shifts so an even takt time is
maintained.
4. Provide level kanban signals to internal and
external suppliers.
5. Adjust for model variation in relation to
overall volume.
Source Inspection and Poka-Yoke
Critical to Quality check points are written
into the Standard Work for each operation. It is
each operator’s responsibility to not only check
their work, but to check work that has been
completed prior to their operation. We use
other verification systems to ensure quality at
the source.
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24
Achieving 6 Sigma Process CapabilityAchieving 6 Sigma Process Capability
6 Sigma6 Sigma
(3.4 DPM)(3.4 DPM)
5 Sigma5 Sigma
(233 DPM)(233 DPM)
4 Sigma4 Sigma
(6,210 DPM)(6,210 DPM)
3 Sigma3 Sigma
(66,807 DPM)(66,807 DPM)
11--2 Sigma2 Sigma
(308,537 DPM)(308,537 DPM)
Design forDesign for LeanSigmaLeanSigma
Process CapabilityProcess Capability
Process OptimizationProcess Optimization
Waste EliminationWaste Elimination
Create FlowCreate Flow
Logic & IntuitionLogic & Intuition
Some of our key performance indicators are:
• RTY (Rolled Throughput Yield)
• First and last piece inspections
completed at the press operation
• Roving audits in both assembly and
press departments
• Color testing and in-process paint
adhesion tests
It is our vision to predict or prevent defects
rather than detecting them. Each associate on
the assembly line has the authority to interrupt
the production flow based on defined criteria.
We also implement numerous mistake-proofing
practices such as:
• Part design that has a one way fit – like
harness connections that only fit the
proper terminal points
• Fixture design – an orbital forming
machine that has universal fixtures
fitting three individual brackets that
prevent mis-loading
• Safety – fail-safe light curtains on
presses and automated equipment.
Six Sigma or Statistical Process
Control
As previously stated, Maytag utilizes both Lean
and Six Sigma, giving us an expanded array of
improvement tools that, when selected properly,
direct us to the desired results.
As can be seen in Figure 1.4, in most
instances, we use tools from the lean toolbox
when working on projects with sigma
between 3 and 4. We would utilize Six
Sigma tools when working on projects with
sigma from 4 to 6. Projects of this type
require more in depth analysis techniques and
are applied to process variation related to
capabilities and optimization.
The Six Sigma methodology provides a
set of tools that assists specially trained
personnel (or teams) in reduction of process
variation. A specific issue that required sigma
tools was the Washer Belt SCR (service call
rate) Reduction. Tools that were used in the
DMAIC of this issue included:
• Defining the project scope
• Pareto Charts
• Cause and Effects Matrix
• Gauge R&R on the belt measuring
machine
• A Design FMEA on the belts
• A Taguchi Design DOE (Design Of
Experiments).
From this analysis we were able to
statistically deduce that the cord material of
the belt was a main effect and would be the
focus of improvement efforts. After the re-
specification of a new material, a new
capability study was completed on belt length
and Cpk was improved from 1.36 to 2.16.
Another main effect determined by the
DOE was the motor pulley. After a new
design was suggested and implemented by
our motor vendor, we conducted a new study
of the pulley diameter. Improving this Cpk
from 0.98 to 2.74 was the result of the new
design.
To verify impact of these improvements,
the belt completed time series plots of SCR
data for an extended time (over 6 months)
and found significant positive impact on the
problem. (Figure 1.5) Annual cost savings in
SCR were valued at $555,450.Figure 1.4
31. Searcy Laundry Products
25
Our floor processes can also benefit from
the systematic reduction in variation we
achieve through the six sigma methodology.
Our washer suspension is a sheet metal
fabrication that is resistance spot welded
together. There were lab unit failures that
occurred during an out-of-balance load test
and seemed to originate at one of the spot
weld locations. After a metallurgical study of
the failed suspensions, a suggestion was made
by design engineering to change our weld
schedule to prevent premature failures.
A belt project was initiated to optimize
the schedule for strength. A process map,
C&E matrix, and process FMEA (Failure
Mode Effects Analysis) revealed factors
(mating part fit, weld tip type) other than
weld schedule to address.
During a subsequent sigma kaizen event,
the team improved 5S in the area, arranged
machines to improve flow, and completed a
Full-Factorial DOE on the process. After a
Best Subsets analysis of the DOE data, weld
settings, mating part shapes, and a tip type
were optimized to provide the most robust
joint possible.
These were examples of how the
utilization of the right tools, to the correct
processes, guided by a concise methodology
can make a significant impact.
Product and Process Preparation (3P)
and Project Management Tools
We design production processes in less time
and for less money. This is done most
effectively and cost efficiently when it is very
early in the conceptual design of the product
and process.
We incorporate a 3P process to achieve
optimal arrangement of people, machines,
material and methods within a work area. Our
goals are to:
• Improve productivity
• Eliminate waste
• Adhere to schedule
• Adhere to budgets.
During the launch of the H2 transmission
project, we used the 3P process and project
management tools. We were tasked with:
• Reducing the foot print of the assembly area
• Maximize the efficiency of work content,
• Move the cell to our sister site in Reynosa
Mexico. We formulated a cross-functional
team of personnel from:
o The Reynosa, Mexico site,
o Herrin Ill. facility (familiar with the
design of the product and equipment)
o SLP Continuous Improvement Group
and maintenance personnel.
We completed a 3P event in which we
fashioned and mock version of the complete cell
that would be utilized at the Reynosa site. By
observing orientation of parts and fixtures, we
were able to combine several stations into one
station utilizing the one-motion (Nagara)
system. (Figure 1.6)
One obstacle we encountered was upon
assembly of the cell and observed at a sample
takt time; one particular machine did not have
enough linear travel distance to accommodate
the pace of the line. The team contacted the
machine vendor so a design change could be
implemented before the system was delivered.
Figure 1.5
32. Searcy Laundry Products
26
The 3P event team also applied Design for
Lean Sigma tools as part design changes were
discovered:
• Utilizing the cross functional team, the event
enjoyed real-time VOC (Voice of the
Customer) feed back because the Reynosa
facility would now be the supplier to both
Searcy Laundry Products and Herrin
Laundry Products.
• All CTQ (Critical to Quality) characteristics
were discussed and customer expectations
were set. The quality control plan was
written during the event week.
• As we looked at the product, we designed in
some asymmetric features as Poka Yokes to
prevent improper assembly.
It was also revealed in the event that
shipping the products horizontally would be an
issue. Lube from the inside of the transmission
would tend to leak from the output side of the
gearbox. This led us to the addition of another
seal part on the transmission. Discovery of this
issue early in the project schedule meant that
this late design change would not have an effect
on the release date of the product.
A parallel event had a team from all three
sites discussing (part by part) plans and issues
regarding logistics (or shipping) of piece parts
from all vendors into Mexico and finished
goods back into the United States.
At the end of the week, we had completed:
• The 3P(Product & Production Preparation)
(Figure 1.7)
• The logistics event,
• A Microsoft Project schedule of individual
tasks and upcoming kaizen events
These results helped us launch this project
on time and under budget. This project equated
to an approximate $16/unit savings ($120K
9/02-present)
Using this tool the project leader could now
manage tasks and resources to the Gantt chart
(Figure 1.8) and use the pert chart to understand
the critical path to completion.
Figure 1.8
Figure 1.7
Figure 1.6
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28
III Non-Manufacturing Support Functions
In its ambition to reach and maintain world-
class manufacturing status, SLP has integrated
six support departments with direct
manufacturing functions. These departments
are:
• Accounting
• Human Resources
• LeanSigma®
Office
• Facilities Engineering
• Materials & Logistics
• Quality
SLP uses cross-functional improvement teams
within our organization to provide the most
responsive and integrated effort possible. They
are designed to support and reinforce SLP's
commitment to the four deliverables, namely
Safety, Quality, Cost and Delivery (SQCD).
Each of the six support departments has
embraced the concepts of LeanSigma®
. In many
cases, there is use of the tools and documented
improvements from LeanSigma®
activities.
The focus of the support departments'
LeanSigma®
efforts is two-fold:
1. Improving manufacturing processes
2. Improving business processes
The continuous improvement concepts and tools
applied across all of SLP's departments are:
• Lean Manufacturing/Kaizen Philosophies,
Concepts and Activities
• Six Sigma Philosophy, Concepts and
Activities
• JIT and Value Stream Management
• Visual Management Techniques
• Rolled Throughput Yield (RTY)
• ISO 9001
• Pull and Material Replenishment Systems
• Root Cause/Corrective Action Tools
35. Searcy Laundry Products
29
Accounting Department
Accounting responsibilities include month end
close, month end financial reporting and
forecasting, cost accounting, general
accounting, payroll, performance reporting,
financial support and assistance to other
manufacturing departments.
Accounting is fully integrated with the
manufacturing product and process changes:
therefore; they are fully aware of all
Engineering Change Notifications (ECN's),
Pilot Builds, Bill of Material changes, and
process changes.
Accounting coordinates product structure
changes and monitors inventory levels. The
interaction between Manufacturing, Materials,
Product Engineering and Accounting is greatly
improved by this coordination.
The introduction of pull systems and inventory
reduction initiatives has created a closer
relationship between Accounting and
Manufacturing. Accounting and Procurement
have achieved tighter inventory control and
improved inventory accuracy through the Lean
systems.
Accounting supports cost reduction
opportunities and provides cost reduction
documentation to the manufacturing teams. In
addition, bi-monthly meetings are held to
review current cost improvement results and the
status of projects.
Accounting Results
The results of this department include:
• SLP financial statements are closed on the
third work day following month end, two
full days earlier than two years ago. Updated
full-year forecasts are completed on the
sixth work day.
• Monthly Goal share payout information is
developed and reported to the associates.
A bonus is paid out monthly to Direct,
Indirect, & Non-Exempt associates based on
monthly performance to goals
• Supported the Materials department with
improved inventory reporting and accuracy.
• Electronic database for Engineering Change
Notification Process has provided efficiency
gains in information, workflow coordination
and accuracy
Accounting Strategies
The department has targeted the following
initiatives:
• The application of LeanSigma tools to
standardized business systems across all of
Maytag Appliances
• Working with LeanSigma group in
capturing and recording SLP's cost reduction
initiatives
Accounting Goals
The department's goals include:
• Continue to provide timely and accurate
monthly financial reporting to Corporate
• Improve department managers access to
financial results
• Standardized accounting practices across
departments and sites
• Streamlined business processes and
improved cost management
• Continuous strengthening of working
relationship with department managers and
department associates
Support all SLP departments with timely and
accurate financial information supportive to
their continuous improvement efforts.
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30
Human Resources Department
The SLP Human Resources Department
supports all associates and operational
departments. Integration of corporate and SLP
HR with Manufacturing and Research &
Development is critical to SLP’s mission
success.
The Human Resources Department is
dedicated to our Work Environment Policy
statement which states:
"Maytag SLP is dedicated to creating a
work environment that promotes an aligned,
capable and committed workforce through
effective communication, training and
equitable treatment".
To accomplish this task, we work very
closely with each manufacturing group to
evaluate and meet their needs so that they get
everything they need to successfully complete
their jobs. This includes evaluating training
needs, publishing associate communications,
organizing associate recreational activities, and
providing policies and procedures which ensure
fair and equitable treatment of all associates.
The SLP individual associate is valued by the
corporation as an asset of knowledge, talent and
productivity. When activated as a team member,
their value grows significantly.
The introduction of kaizen events and
increased associate involvement has helped the
HR department interact with the manufacturing
associates. Just during the past year, our
associates, during kaizen events, have:
• Revised the Attendance Procedure,
• updated our Goal Sharing Plan,
• Revised our Associate Suggestion Program.
Using the kaizen process (empowering our
hourly associates on cross functional teams)
with these projects has increased the level of
acceptance and "buy-in'' from our associate
population. We are finding this process to be
much more effective than our previous method
of introducing changes.
LeanSigma®
Office
The LeanSigma®
Office was created to act
as general consultants for all departments
regarding continuous improvement activities.
LeanSigma®
teams are created around a
specific problem or set of problems. The team's
purpose is two fold:
• Train the team in the tools of LeanSigma®
,
• Define, improve and control the main
effects that cause the issue.
The LeanSigma®
Department is a key
enabler to continuous improvement efforts at
SLP. The results are numerous and can be seen
in many areas within the facility.
Examples of the department's results:
• Smaller lean lines that are platform-focused
and produce at takt times
• On-going implementation of pull systems
and Kanban processes
• Moving processes in-line with assemblies
to create one-piece flow.
• The continual reduction of variation in
production and support processes.
• Visual Management. 5S is a primary
initiative.
Numerous kaizen activities with sustainable
results support the achievement of our goals.
Individual improvements have included:
• Planning sessions to outline goals and
objectives for future events.
• Development of the Lean database as a
collection point for SLP Lean
manufacturing activity history.
• Integration of Safety department objectives
into kaizen event goals.
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Future Strategies
The goals and results of the LeanSigma®
effort include hard and soft benefits. These
include:
• Elimination of manufacturing process waste
and variation
• An empowered workforce that recognizes the
benefits of a LeanSigma®
culture.
• Proficient application of LeanSigma®
tools
when needed
Metric or data driven performance and
improvement efforts
Facilities Engineering
The charge of the Facilities Engineering
Department is to oversee major projects and the
purchase, upkeep, and upgrading of all physical
assets at SLP. The Facilities Engineering
Department is organized into 4 disciplines to
support and improve daily production operations:
• Manufacturing Engineering
• Industrial Engineering
• Tool & Die Maintenance
• Plant Maintenance
Manufacturing engineering has
responsibility for technical support of
mechanization and control of all types of
machinery within the factory or SLP owned
equipment located off-site at our vendors. Their
principle interaction with production is in the
specification and acquisition of equipment
needed to perform value-added labor while
minimizing non-value added waste in whatever
form it takes.
Most recently, manufacturing engineering
has been engaged in the re-arrangement of the
assembly departments to support the lean vision.
The rough layout was planned during visioning
events but the integration of the individual
components required to create departmental flow
needs to be coordinated directly with production.
The layout of the assembly line (to eliminate
NVA sections of WIP) drove changes in the
overhead conveyor system which, in turn, altered
the sequence of parts through the paint system,
which effected the press department
scheduling. Through organized, Gantt chart-
driven weekly meetings with engineers and
production leaders; the department addresses
issues of scheduling and system conflicts
during this time of mass transition.
The physical transition itself is an immense
task of re-routing and equipment relocation.
SLP leadership was challenged with
accomplishing this mission without excessive
expenditure or negative impact to labor
productivity metrics of the site. An
opportunity was extended to our maintenance
personnel to volunteer to join a special projects
team to specifically complete the project.
With the special project team in place, the
lean rearrangement of the assembly
departments is providing the desired
production smoothing and WIP reduction. The
dedication of associates involved denoted full
ownership of the program while avoiding
approximately 70% of the original estimated
costs.
Industrial engineering has the functions
of line balancing, labor costing, and
ergonomics.
The balance of tasks in assembly operations
is a multifaceted challenge for operator,
engineer, and supervisor. Individual work
stations within cells rotate associates. (This is
to reduce exposure to repetitive motion
dangers.) The best labor sequence for a given
work station and different operators varies,
thus creating the challenge.
Rebalancing the distribution of labor
elements on an assembly line is required when
demand changes. IE reduced the time required
to rebalance a line 50% (from two weeks to
only one) by the eliminating the NVA in the
process. This was accomplished by
development of software and a systematic
process that uses simultaneous input from labor
observations, operators and supervisors. This
improvement allowed for flexibility in meeting
the ever changing demands of our customers
and quick takt time calculation, a basic need of
shop floor kaizen events.
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Industrial engineering is committed to
continuous improvement by revisiting line
locations after a specific balance is implemented.
They respond to, or verify, reports of inefficient
work sequences. They use associate
observations, audits, and kaizen events as
opportunities to improve the flow of work.
The Tool and Die room is closely integrated
with production through preventive die and
fixture maintenance, development of special jigs
& gauges, and the fabrication of special
machines to perform VA labor and testing. They
also support Design Engineering by acting as a
model shop for mock-ups of prototype designs.
The tool room has dedicated resources that
sustain the quality of dies that form sheet metal
shapes. Tool room personnel interact with
Fabrication Equipment Operators (FEO) from the
press department, to continually improve the
dimensional quality, uptime, wear, and scrap
issues that each press operation possesses.
The tool room worked with design and
assembly to modify the process of attaching a
bracket to the washer top. The clinching process
known as “Tox®ing” holds two pieces of sheet
metal together with a single button. In some
cases, this single connection point allowed for
rotation of the bracket; the rotation, in turn,
caused customer complaints about instability.
Design suggested using two connection points to
prevent this rotation.
The Tox® assembly machine tonnage was
rated only to produce one button at a time. The
capital cost of a new machine to produce a two
button connection was estimated at $75, 000.
The tool room suggested making a change to the
machine to produce the two button joint using
only one die set by shifting the fixtured parts.
This was an innovative approach to a problem
that could have taken a more costly path. SLP
calls this practice ‘creativity before capital’.
Plant Maintenance group, in addition to
providing preventative and predictive
maintenance support of equipment, is responsible
for fast response to unexpected breakdowns and
mechanical support of special projects.
Even though shop floor kaizen teams are
empowered to make changes in areas during
events; often maintenance is required for
heavier ‘furniture moves’ - where equipment
layouts change. Their support during events is
essential.
Materials Department
The SLP Materials Department includes:
• Procurement/MRO crib
• Supplier Quality
• Production Control
• Inventory Control
• Master Scheduling
• Shipping/Receiving/Warehousing
• Information Technology (indirect)
The team is organized into commodity
groups to focus on the challenges each product
necessitates. Feedback from receiving/
inspection or from the production floor drives
improvement activities that focus on specific
issues.
The Materials department is tied very
closely to the day-to-day manufacturing
activities. The purchasing and scheduling
groups work with manufacturing to assure that
material is available for the planned production
on an ongoing basis. The Shipping Department
monitors production throughout the day and
ships available units based on customer
demands. The Master Scheduling group
likewise monitors production to assure that the
proper models are built based on demand.
The Materials group is converting to a pull
system to improve the availability of required
components. Suppliers are given a long range
production plan for planning purposes. Kaizen
events have enabled us to implement pull
systems on the production floor. This system
enables more effective material provision
based on actual customer usage.