1. Lean Warehouse Strategy
• Create an empowered and
self directed work force,
managed by exception, using
visual controls and standard
work.
• Elimination of Waste and
reduction of variation by
striving for clean, professional
environment; using Lean
Sigma philosophies and tools.

2. Receiving Charter
Business Case
• All purchased material delivered to
Loram needs to be received same day.
• Customer expectations of
presentation, delivery, and ease of
consumption.
• Aligns with Speed and Performance
critical success factor and 2014 Lean
Initiative.
Opportunity Statement
• Current resource needs are 1-4
resources to receive 300-600 lines per
day.
• Average time per line received is 2.5
minutes ($3.25 per line).
• Material is touched up to 9 times
before being put away.
• Material is traveling thousands of feet
before being picked.
Goal Statement
Y = Move receiving to south bay, 5S area,
and streamline processes by 3/31/2014.
X1: Reduce the time it takes to receive a
non-inspection line item by 50%.
X2: Reduce the distance receiving
material travels to picking process by 50%.
X3: Reduce the number of times material
is touched from delivery to beginning of
picking process.
Project Scope
• Process steps from delivery to
material put away.
• Areas directly affected are Receiving
and Warehouse, Inspection location
• Creation of Visual controls to enable
management by exception.
• Out of scope:
• Picking process and Locating
• Inspection process
• All other departments
Project Plan
• Kaizen Event start date of 3/10/14 with
a completion date 3/21/14 with 4 hour
days.
The steps will include:
• 5S event
• Spaghetti Map
• Value Stream Map
• Visual Metrics
• Standard Work
Team Members
Sponsor- Scott Heilman
Project Lead- Jim Cox
8 cross-functional teammates
- Ian Torning (Material Handler)
- Robert Hilger (Material Handler)
- Brent Hobert (Cost Accounting)
- Barb Christensen(Logistics)
- Keith Rhein (Production Planner)
- Bryan Budahn (Lean)
- Jennifer Kortekaas (Procurement)
- Joe Mutua (MPE)
Subject matter experts – On call

3. RECEIVING BEFORE PICTURES

4. RECEIVING BEFORE PICTURES

5. To be received (no Receiving Lanes)

9. What is Next?
• Shipping Kaizen
• Bay 2 Renovation

10. Shipping Kaizen Charter
Business Case
• All material shipped to customers to be
picked, packed and shipped same day
or next day
• Future layout requests “Nothing on the
Floor”
• Customer expectations of
presentation, delivery and ease of
delivery
• Aligns with Speed and Performance
critical success factor and 2015 Lean
Initiative.
Opportunity Statement
• Current resource needs are 1-4
resources to stage, audit, pick pack and
ship 100-250 lines per day
• Average cycle time per line shipped is
XXX minutes
• Material is touched up to XXX times
before being shipped out
• Material is traveling XXX thousands of
feet before being shipped
• Accuracy expectation is 100%
accuracy; currently XXX
• Average Cycle time per Order to ship is
XXX minutes
Goal Statement
Y = Reduce the Non-Value added time by
50% by Streamline & align shipping
department processes.
X1: designated space for WIP and FG
X2: Implement one piece flow: pick, pack
and ship of an order
X3: Reduce the distance material travels in
warehouse before being shipped by 50%
Project Scope
• Process starts: Shipping Pick order
• Process Ends: Material shipped,
Transacted, and on a truck to customer
• Areas directly affected are Shipping,
Warehouse and Logistics
• Establish KPI’s in webfocus to enable
management by exception
• Out of scope:
• Inventory Control Functions
• Receiving Inspection Processes
• Customer Service
Project Plan
• Kaizen Event start date of Feb 16 with
a completion date Feb 20 with 8 hour
days.
Day 1 – Orientation See Link on slide 3
Day 2 - Understand the current situation
Day 3 - Develop the future state design
Day 4 - Make the improvements
Day 5 - Report and celebrate
The steps will include:
• Value Stream Maps
• Standard Work
• Spaghetti Map
• Visual Metrics
• 5S activity
Team Members
Lean Coach – David Badger
Sponsor- John Pilarski
Project Lead- Scott Helman
cross-functional teammates
- Dan Ullsperger (Material Handler)
- Curt Lindsley (Material Handler)
- Kim Berg (Manager, Financial
- Dan Leverenz (Logistics Specialist)
- Aaron Lewis(Safety Specialist)
Subject matter experts – On call