achieving supply chain excellence

1

Achieving Supply Chain ExcellenceDave Wheeler

Vice President, Global Production & Logistics

2

Sr. Management

Attention Span

Corporate

Culture

Cost

Reduction

The Challenge in 2001

3

Six Chapters of the Novel

1. Company overview

2. Our First Steps

3. Fueling the Fire

4. Leveraging Results

5. Hitting the Bottom Line

6. What’s on the Horizon

4

> 800,000B U S I N E S S C U S T O M E R S

>5,000,000U N I F O R M W E A R E R S D A I L Y

42 Manufacturing Plants3000+ Suppliers World Wide5 Regional Distribution CentersCatalog Distribution Center

National Account Distribution Center273 Laundry Plants

Cintas Corporation

5

First Aid & SafetyRental Uniform

Catalog

Fire Protection

Cintas Products/Services

Document Management

6

Industrial Uniform–the bread & butter

7

The Trucks

8Wearers

Routes

Service & Sales Rep

Orders

Customers

Plants

Cintas Services Workflow

Regional, Catalog & National

Accounts Distribution

Centers273 Laundry Plants

Global Mfg Plants &

Suppliers

9

Catalog / Direct Sale

10


11


12


13


14


15

FY 2007 Financial Results

0500

10001500200025003000350040004500

1999

2000

2001

2002

2003

2004

2005

2006

2007

Net Incom e

Revenue

Diversification Strategy‘96 Floor Mats‘97 First Aid and Safety’98 Uniforms to You’02 Restroom Supply’03 Document Mgmt’03 Fire Prevention

Profits 28.5% (cagr)

1969 2007

16

Our First Steps

1. Company overview

2. Our First Steps

3. Fueling the Fire




17

Cintas Six Sigma – First Steps

Pilot started October 2001

• Piloted three Divisions: - National Account Sales Division - Distribution/Production Planning- Manufacturing & Logistics

• 18 Black Belts

18

KPI FY ‘02 FY ‘04

15%

($0.5MM)

$1.79

Service Level 96.9% 98.9%

Inventory $186MM $142MM

Inventory $ / Units Shipped 47 37

190K

Employee Turnover 38%

Net Income ($7MM)

Cost / Unit $2.11

Units Shipped / Day

150K


19

Traditional Lean

• Quick hits / Kaizen

• Visual, intuitive tools- Process map- Value stream map- Spaghetti map- Fishbone diagram- Pareto- Control charts

Traditional Six Sigma

• Deep dive / discovercritical X

- Simulation

- Statistical analysis (ANOVA, T-test)

- Design of Experiments

Combined Lean & Six Sigma

20

DEFINEIdentify Problem

•Develop PAF•Obtain Approvals

MEASUREData CollectionPlan

•Collect Data•Data Integrity Audits

ANALYZEIdentify Sourceof Variation

•Current Capability

IMPROVESolution •Pilot•Implementation Plan

•Payback Analysis

•Obtain Approvals for Implementation

IMPLEMENTInstallTechnologyTrainingTransfer

CONTROLControl Plan•Sustain

Diverge

Questions

Converge

Answers

Diverge / Converge DMAI C2

21

Project Selection Process

Prioritized Projects

11132

Issues/

Project Ideas

Voice of the Customer

Voice of the Business Voice of the

Process

Voice of the Partner

Project Prioritization

Matrix

22

• DECISION: Deploy Six Sigma across allOperating Divisions - June ’04

Uniform & Facility Services DivisionFirst Aid & Safety DivisionDocument Management DivisionFire Services Division


23

ISSUES:

1. No common language Company-wide

2. Sustainability questioned• Solutions • Support Structure• Black Belt follow-up


24

Fueling the Fire

1. Company overview

2. Our First Steps

3. Fueling the Fire




25

Control Plans – the critical piece

Full Automation

Awareness

Fail-Proof

Simplification

Training

• No Manual Intervention

• Notification, “big stick”

• Certification and Audits

• Eliminate Activity

• Impossible to Fail

Behavior typically reverts back to defects

If behavior cannot be changed, change the process that the behavior follows

Most Desired

Least Desired

Daily Mgt Systems/PVD • Defect feedback/visibility

26

Work Group Meetings

Asuntos del Área:•Mejoramiento de Eficiencia•Reducción de Desperdicio•Mejoramientos Kaizen•Limpieza y Organización

Asistencia

JoséChuchoLucíaNachoLupe

Agosto

1 2 3 4 5 6 7 8 9 10 11 12 13 ....

CalidadProductividad

KaizenEntrenamiento Cruzado


Habilidades Flex %

OperacionalMecánico

Tiempo Perdido

Hojas de Acción

Por Hacer

Servicio

Seguridad

012345

1 2 3 4 5 6 7

Antes: Después:

Resultados y Ejemplos de Auditoría de Limpieza

1. 4

2 5

3. 3

50

70

90

110

1 2 3 4 5 6 750

70

90

110

1 2 3 4 5 6 750

70

90

110

1 2 3 4 5 6 70

20406080

100

1 2 3 4 5 6 70

20406080

100

1 2 3 4 5 6 7

Actualizado8/12/99


Asistencia


Agosto

1 2 3 4 5 6 7 8 9 10 11 12 13 ....




Habilidades Flex %


Tiempo Perdido

Hojas de Acción

Por Hacer

Servicio

Seguridad

012345

1 2 3 4 5 6 7

Antes: Después:


1. 4

2 5

3. 3

50

70

90

110

1 2 3 4 5 6 750

70

90

110

1 2 3 4 5 6 750

70

90

110

1 2 3 4 5 6 70

20406080

100

1 2 3 4 5 6 70

20406080

100

1 2 3 4 5 6 7


Asistencia


Agosto

1 2 3 4 5 6 7 8 9 10 11 12 13 ....




Habilidades Flex %


Tiempo Perdido

Hojas de Acción

Por Hacer

Servicio

Seguridad

012345

1 2 3 4 5 6 7

Antes: Después:


1. 4

2 5

3. 3

50

70

90

110

1 2 3 4 5 6 750

70

90

110

1 2 3 4 5 6 750

70

90

110

1 2 3 4 5 6 70

20406080

100

1 2 3 4 5 6 70

20406080

100

1 2 3 4 5 6 7

Actualizado8/12/99

Primary Visual Display

CDMSElements

Cintas Daily Management System

27

Primary Visual Display Board

Area Top Issues:•Efficiency Improvement•Scrap Reduction•Kaizen Improvements•Cleaning and Organizing Visual Attendance

LarryChuckKathyJoeJim

1 2 3 4 5 6 7 8 9 10 11 12 13 ....

QualityProductivity

KaizenSkills Flexibility

LarryChuckKathyJoeJim

Skills Flex %

OperationalMechanicalLost Time

Action Sheets

To Do’s

Service

Safety

012345

1 2 3 4 5 6 7

Before: After:

Housekeeping Audit Results and Examples

1. 4

2 5

3. 3

50

70

90

110

1 2 3 4 5 6 750

70

90

110

1 2 3 4 5 6 750

70

90

110

1 2 3 4 5 6 70

20406080

100

1 2 3 4 5 6 70

20406080

100

1 2 3 4 5 6 7


29


30

Work Group Meetings


Asistencia


Agosto

1 2 3 4 5 6 7 8 9 10 11 12 13 ....




Habilidades Flex %


Tiempo Perdido

Hojas de Acción

Por Hacer

Servicio

Seguridad

012345

1 2 3 4 5 6 7

Antes: Después:


1. 4

2 5

3. 3

50

70

90

110

1 2 3 4 5 6 750

70

90

110

1 2 3 4 5 6 750

70

90

110

1 2 3 4 5 6 70

20406080

100

1 2 3 4 5 6 70

20406080

100

1 2 3 4 5 6 7

Actualizado8/12/99


Asistencia


Agosto

1 2 3 4 5 6 7 8 9 10 11 12 13 ....




Habilidades Flex %


Tiempo Perdido

Hojas de Acción

Por Hacer

Servicio

Seguridad

012345

1 2 3 4 5 6 7

Antes: Después:


1. 4

2 5

3. 3

50

70

90

110

1 2 3 4 5 6 750

70

90

110

1 2 3 4 5 6 750

70

90

110

1 2 3 4 5 6 70

20406080

100

1 2 3 4 5 6 70

20406080

100

1 2 3 4 5 6 7


Asistencia


Agosto

1 2 3 4 5 6 7 8 9 10 11 12 13 ....




Habilidades Flex %


Tiempo Perdido

Hojas de Acción

Por Hacer

Servicio

Seguridad

012345

1 2 3 4 5 6 7

Antes: Después:


1. 4

2 5

3. 3

50

70

90

110

1 2 3 4 5 6 750

70

90

110

1 2 3 4 5 6 750

70

90

110

1 2 3 4 5 6 70

20406080

100

1 2 3 4 5 6 70

20406080

100

1 2 3 4 5 6 7

Actualizado8/12/99


Core Process Review

FAS Locations Customer

FAS Wholesale

Key Performance Indicators

CDMSElements


31

Kaizen Action Sheet


32

Work Group Meetings


Asistencia


Agosto

1 2 3 4 5 6 7 8 9 10 11 12 13 ....




Habilidades Flex %


Tiempo Perdido

Hojas de Acción

Por Hacer

Servicio

Seguridad

012345

1 2 3 4 5 6 7

Antes: Después:


1. 4

2 5

3. 3

50

70

90

110

1 2 3 4 5 6 750

70

90

110

1 2 3 4 5 6 750

70

90

110

1 2 3 4 5 6 70

20406080

100

1 2 3 4 5 6 70

20406080

100

1 2 3 4 5 6 7

Actualizado8/12/99


Asistencia


Agosto

1 2 3 4 5 6 7 8 9 10 11 12 13 ....




Habilidades Flex %


Tiempo Perdido

Hojas de Acción

Por Hacer

Servicio

Seguridad

012345

1 2 3 4 5 6 7

Antes: Después:


1. 4

2 5

3. 3

50

70

90

110

1 2 3 4 5 6 750

70

90

110

1 2 3 4 5 6 750

70

90

110

1 2 3 4 5 6 70

20406080

100

1 2 3 4 5 6 70

20406080

100

1 2 3 4 5 6 7


Asistencia


Agosto

1 2 3 4 5 6 7 8 9 10 11 12 13 ....




Habilidades Flex %


Tiempo Perdido

Hojas de Acción

Por Hacer

Servicio

Seguridad

012345

1 2 3 4 5 6 7

Antes: Después:


1. 4

2 5

3. 3

50

70

90

110

1 2 3 4 5 6 750

70

90

110

1 2 3 4 5 6 750

70

90

110

1 2 3 4 5 6 70

20406080

100

1 2 3 4 5 6 70

20406080

100

1 2 3 4 5 6 7

Actualizado8/12/99


20 Keys

Core Process Review


FAS Wholesale


CDMSElements


33

1. Cleaning 2 Organizing3. Team Activities4 Metrics5. Process Controls6. Continuous Process

Improvement7 Roles And

Responsibilities8. Work Leveling9. Work Standards10. Visual Systems11. Time Control &

Commitment12. Pre-Shift Meetings13 Eliminating Waste14. Empowering Workers15. Skill Versatility 16. Production Scheduling 17. Equipment

Maintenance18. Quality Assurance 19. Management of

Objectives20. Quick Changeovers

Level Level Characteristics/Conditions

5 Seamless, Transparent Automatic Excellence

4 World-class, Outstanding, Not Quite Always Automatic

3 System Installed, Frequent Glitches, Sometimes Serious

2 Awareness Established, First Small Steps Taken

1 The Usual Mess, Reactive, Few or Bad Systems, Many Problems, Most Accepted as, “Oh Well…”


34


35

Work Group Meetings


Asistencia


Agosto

1 2 3 4 5 6 7 8 9 10 11 12 13 ....




Habilidades Flex %


Tiempo Perdido

Hojas de Acción

Por Hacer

Servicio

Seguridad

012345

1 2 3 4 5 6 7

Antes: Después:


1. 4

2 5

3. 3

50

70

90

110

1 2 3 4 5 6 750

70

90

110

1 2 3 4 5 6 750

70

90

110

1 2 3 4 5 6 70

20406080

100

1 2 3 4 5 6 70

20406080

100

1 2 3 4 5 6 7

Actualizado8/12/99


Asistencia


Agosto

1 2 3 4 5 6 7 8 9 10 11 12 13 ....




Habilidades Flex %


Tiempo Perdido

Hojas de Acción

Por Hacer

Servicio

Seguridad

012345

1 2 3 4 5 6 7

Antes: Después:


1. 4

2 5

3. 3

50

70

90

110

1 2 3 4 5 6 750

70

90

110

1 2 3 4 5 6 750

70

90

110

1 2 3 4 5 6 70

20406080

100

1 2 3 4 5 6 70

20406080

100

1 2 3 4 5 6 7


Asistencia


Agosto

1 2 3 4 5 6 7 8 9 10 11 12 13 ....




Habilidades Flex %


Tiempo Perdido

Hojas de Acción

Por Hacer

Servicio

Seguridad

012345

1 2 3 4 5 6 7

Antes: Después:


1. 4

2 5

3. 3

50

70

90

110

1 2 3 4 5 6 750

70

90

110

1 2 3 4 5 6 750

70

90

110

1 2 3 4 5 6 70

20406080

100

1 2 3 4 5 6 70

20406080

100

1 2 3 4 5 6 7

Actualizado8/12/99


Short Interval Coaching

20 KeysCore Process Review


FAS Wholesale


CDMSElements

Management By Walking Around


36

Roles & Responsibilities

Green Belts

Master Black Belts

Co-Champions

Champions

ExecutiveChampion

Frontline Employees

Black Belts

• Owns the vision, direction, integration, results

• Supports Six Sigma byparticipating on project teams & leading CDMS

• Train & coach BBs, GBs & give guidance

to Co-Champion & Champions

• Align with business strategies

• Execute vision set by Champions• Identify human resources• Identify & Scope projects

• Set Divisional vision

• Identify & scope projects

• Identify, coach & develop BBs & MBBs

• Provides day-to-day management & direction of Six Sigma program

• Leads change for Cintas

• Apply Six Sigma toolsto specific projects, lead

& direct teamto execute

projects

CEO - S. FarmerCorp ESC

•Ideas, quick hits

Local ESC leaders

• Identify projects• Ensure implementation

Process Owner

37

WOR

Turnover

Absenteeism

ProblemSolving

Sales

P&L

Environmental

Workmen’sComp

Typical Weekly MeetingESC Meeting

ChangeManagement

Problem Solving

Staffing &

Training

Site Level& CDMSEngaged

Executive Steering Committees

38

Purpose:

1. Point

2. Charter

3. Facilitate


39

Business Unit / Staff Department ESC

Site Level ESC

Intact Work Teams ESC

Corporate ESCExecutive Staff and their Champions

Divisional VP and Direct Reports

Site Level Leader and a combination of Direct Reports and Front-Line employees

Quarterly

Monthly

Weekly


40

Executive SteeringCommittee Agenda

Training & Resources

ChangeManagement

Policies & Procedures -Cintas Daily

Management System


41

I. Change management1. GSCM Six Sigma Overview/Results – Year end FY072. GSCM Green Belt Projects by Group3. Green Belt Project Reviews

i. Sourcing projectii. Distribution projectiii. Quality Assurance project

4. GSCM Value Improvement Savings5. Black Belt Workload6. FY’08 BB Support Assignments7. FY’08 GB Goals8. GSCM KPI Scorecard Review9. IT Support

i. EDI progress reportii. Workload backlog and progress (SIRs)iii. Key initiatives update (dashboard review)iv. Visibility action plan

II. Training and Resources1. Black Belt Training Update2. Project Review Schedule3. GSCM Green Belt Classes

III. Policies and Procedures1. 20 Keys Update2. ESC/CDMS Functionality Status/Scorecard


42

Executive Steering Committee

Business Unit / Staff Department ESCResponsible for:1. Change Management

a. Black Belt Projects-Very cross functional-Benefits have high $ impact

b. Measurement of results

2. Staffing & Training3. Site-Level ESC active &

engaged

PointCharterFacilitate

43


Site Level ESC

Responsible for:1. Change Management

a. Green Belt Projects- Less cross functional- Benefits: reduced waste

b. Measurement of results2. Staffing & Training3. CDMS is active & engaged

PointCharterFacilitate

44


Intact Work Teams

Responsible for CDMS elements:1. Daily Work Group Meeting2. Primary Visual Displays3. Key Performance Indicators4. Core Process Reviews 5. Kaizen Action Sheets6. 20 Keys7. Short Interval Coaching8. Management By Walking Around

ExecuteInput Participate

GLOBAL SUPPLY CHAIN SIX SIGMA DEPLOYMENT/FUNCTIONALITY SCORECARD

29.5 30.028.9

30.0 30.0 30.0

28.229.8

26.928.0

30.0

26.026.1

28.8

24.0

28.027.0

20.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

Global SupplyChain Overall

ManufacturingOverall

Distribution/PPOverall

Global Logistics& VI2

Sourcing GSC HumanResources

ESC

DEP

LOYM

ENT

POIN

TS

3rd Qtr 2007 2nd Qtr 2007 1st Qtr 20074th Qtr 2006 FY'07 Goal FY'07 Goal (Revised)

Quarterly Results


46

1. Traditional Six Sigma DMAIC/DMADV

2. Traditional Lean, quick hits & tools

3. Cintas Daily Management System (CDMS)

4. Executive Steering Committees (ESC)

Cintas Six Sigma Elements

The Combination

47

Cintas Six Sigma Today

• In all Divisions

• 7 Master Black Belts

• 156 Black Belts

• 2,381 Green Belts

• 26 Senior Green Belts

Global Supply Chain

Marketing

Sales

Operations

Accounting/Finance

Human Resources

Information Technology

48

Six Sigma Financials Thru FY ‘07FY’01 THRU FY ‘07

DIVISION ANNUALIZEDBOOK IMPACT

ONE TIMEIMPACT

Document Mgmt 1,413,885 10,500Finance/Accounting 3,236,802 0First Aid & Safety 8,463,493 977,974Global Supply Chain 19,489,399 18,282,039Human Resources 3,513,624 0Information Tech 3,790,652 2,067,146Marketing 260,000 337,000National Accts Sales 11,339,801 7,308,184Rental 92,813,761 284,000TOTALS $144,321,417 $29,266,843

One Time Impact

$5MM – $10 MM

Annualized Impact

$45 MM - $65 MM

FY ’08 POTENTIAL

49

Leveraging Results

1. Company overview

2. Our First Steps

3. Fueling the Fire




50

Group Black Belt Network

Cincinnati

NE/ECNWNO

WE

SESW

GL

SC

MS

MW

MA

CP

CP

CE

Implementation Process

Issuing Black Belt

Rental Co-Champion

Champion

Group Black Belts

Black Belt identifies need

for team members, data

or implementation

of solutions

Black Belt completes Six Sigma Task

Form

Black Belt e-mails Task Form to at least three other

Rental Black Belts for review peer review and

feedback (sanity and clarity check)

Pass Peer

Review?

No

Revise Task Form

Review detail description in Task Form, considering impact and workload

Approve for Distribution to Group BBs?

No

Yes

Enter task on Tracking

Worksheets (one per Group)

Conduct weekly review of tasks with GVPs and MBB/Co

-Champion

Provide team member nominations, data and/or implementation status to

issuing Black Belt

MBB / Co-Champion

broadcasts e-mail to

requested GBBs

Memo from Rental Champion to Field (implementation

tasks)

Six Sigma Project Task

TYPES1. Implementations2. Data collection requests3. Team member request

REQUIREMENTS1. Peer review2. Financial benefits3. Details / step by step4. Forms & collection

spreadsheets attached

Detailed Instructions

- Details / step by step - Details / forms, data

Group Black Belt Task Tracking

Group Black Belt maintains, tracks, reportsGROUP BLACK BELT: Jerry Chucko

ESC: Southeast GroupUpdated 4/27/2005

17 69 71 73 74 149 201 219 220 237 258 280 283 294 438 475Task # TYPE Six Sigma Project Task Requested S. Florida St. Pete Kennesaw Orlando Tampa Daytona Decatur Augusta Vidalia Savannah L'ville J'ville W. Palm Ft. Myers Albany Calhoun Notes

(IMPROVE, DATA, TEAM) Complete date SE SE SE SE SE SE SE SE SE SE SE SE SE SE SE SE

3 DATA API Codes, error frequency & types 1/21/2005N/A 01/21/05 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A

Complete

4 DATA One Week Turns 2/18/2005 N/A 02/18/05 N/A N/A 2/18/2005 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Complete

7 Improve Washer Parts 2/4/2005 02/04/05 01/31/05 02/04/05 02/04/05 02/04/05 02/04/05 02/04/05 02/04/05 02/04/05 02/04/05 02/04/05 02/04/05 02/04/05 02/04/05 02/04/05 02/04/05 Complete

8 Improve Locker Invoice Audits 3/4/2005 03/04/05 02/25/05 03/04/05 03/04/05 03/04/05 03/04/05 03/04/05 03/04/05 03/04/05 03/04/05 03/04/05 03/04/05 02/09/05 03/04/05 03/04/05 02/25/05 Complete

9 Improve Locker Zero Query 3/4/2005 03/04/05 02/25/05 03/04/05 03/04/05 03/04/05 03/04/05 03/04/05 03/04/05 03/04/05 03/04/05 03/04/05 03/04/05 03/04/05 03/04/05 03/04/05 02/25/05 Complete

10 Improve Crossfire Training 2/1/2005 02/04/05 02/04/05 02/04/05 02/04/05 02/04/05 02/04/05 02/04/05 02/04/05 02/07/05 02/04/05 02/04/05 02/04/05 02/04/05 02/04/05 02/04/05 02/04/05 Complete

12 Improve Special Cut Revenue 2/7/2005 02/15/05 02/07/05 02/07/05 03/25/05 03/31/05 03/31/05 02/07/05 02/07/05 02/07/05 02/04/05 02/08/05 02/15/05 02/07/05 02/07/05 02/15/05 02/07/05 #149 rekeying data

13 Improve Terry Towel Ordering 1/31/2005 01/31/05 01/31/05 01/31/05 01/31/05 01/31/05 01/31/05 01/31/05 01/31/05 01/31/05 01/31/05 01/31/05 01/31/05 01/31/05 01/31/05 01/31/05 01/31/05 Complete

14 Improve Shared Locker Pool 3/4/2005 04/01/05 04/01/05 04/01/05 04/01/05 04/01/05 04/01/05 04/01/05 04/01/05 04/01/05 04/01/05 04/01/05 04/01/05 04/01/05 04/01/05 04/01/05 04/01/05 Complete

15 Improve Towel Standardization 1/31/2005 02/01/05 02/01/05 02/01/05 02/01/05 02/01/05 02/01/05 02/01/05 02/01/05 02/01/05 02/01/05 02/01/05 02/01/05 02/01/05 02/01/05 02/01/05 02/01/05 Complete

16 Improve Mat Standardization 3/11/2005 02/28/05 02/16/05 02/28/05 02/28/05 02/28/05 02/28/05 03/11/05 02/28/05 04/01/05 02/28/05 02/28/05 02/28/05 02/28/05 02/28/05 03/11/05 02/28/05

17 Measure Data Transfer 2/25/2005 02/22/05 02/22/05 02/22/05 02/22/05 02/22/05 02/22/05 02/22/05 02/22/05 02/22/05 02/22/05 02/22/05 02/22/05 02/22/05 02/22/05 02/22/05 02/22/05 Complete

18 DATA Washer Alley Parts 4/15/2005 N/A N/A N/A 04/15/05 04/15/05 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A Complete

21 Improve Truck Loading Quick Hits 6/10/2005 06/10/05 06/10/05 06/10/05 06/10/05 06/10/05 NA 06/10/05 06/10/05 06/10/05 N/A 06/10/05 06/10/05 06/10/05 N/A 06/10/05 06/10/05 Commenced 5/23/05

R

N/A

NO

NOT APPLICABLE TO LOCATION

NOT REQUIRED FOR SAMPLE - NO PLAN DATE OF COMPLETION

COMPLETE

WITHIN 14 DAYS OF COMPLETION

>14 DAYS TO COMPLETION

NO PLAN TO COMPLETE (RESOURCE SHORTAGE)

Discipline produces results

Group Actual # Items in Inventory

Percent of 75% goal made thus far

Percent of 75% goal made thus far 3/30/05 Status




Percent of 75% goal made thus far

Central 387149 30.7% 48.2% $13,289.80 47.7% $13,183.01 47.3% $13,821.95 49.6% $13,215.13 47.4%East Central 198142 51.1% 64.7% $9,571.84 67.1% $10,291.04 72.1% $11,538.47 80.9% $11,712.90 82.1%Western 134165 0.3% 102.7% $9,924.63 102.7% $9,924.63 102.7% $9,924.63 102.7% $9,924.63 102.7%Southwestern 309371 8.0% 34.9% $7,645.03 34.3% $7,580.97 34.0% $7,427.05 33.3% $6,995.80 31.4%Southeastern 264240 3.8% 59.2% $11,052.77 58.1% $10,852.15 57.0% $10,687.88 56.2% $10,069.72 52.9%South Central 311756 0.0% 31.1% $6,914.30 30.8% $6,863.83 30.6% $6,845.47 30.5% $7,111.15 31.7%Northwestern 169367 14.2% 57.5% $6,892.67 56.5% $6,822.79 56.0% $6,574.05 53.9% $6,300.63 51.7%Northern 46161 0.0% 39.4% $1,300.60 39.1% $1,756.90 52.9% $1,882.76 56.6% $1,748.41 52.6%Northeastern 176664 14.3% 48.5% $6,382.30 50.2% $6,490.48 51.0% $6,309.73 49.6% $5,943.13 46.7%North Central 298217 23.2% 54.2% $11,717.92 54.6% $11,736.88 54.7% $12,080.91 56.3% $11,845.16 55.2%Midwestern 408949 0.2% 19.1% $7,876.28 26.7% $8,031.20 27.3% $7,830.54 26.6% $7,238.03 24.6%Mid South 257231 4.1% 69.7% $13,180.73 71.2% $13,218.39 71.4% $13,022.14 70.3% $12,379.26 66.8%Mid Atlantic 255991 11.1% 55.3% $10,165.34 55.2% $10,946.32 59.4% $11,308.01 61.4% $11,453.91 62.1%Great Lakes 252432 33.0% 57.8% $10,358.23 57.0% $10,247.75 56.4% $10,088.31 55.5% $9,395.60 51.7%

14.3% 49.6% $126,272.44 50.5% $127,946.34 51.2% $129,341.89 51.8% $125,333.45 50.2%$6,566,166.67 $6,653,209.47 $6,725,778.12 $6,517,339.40

Additional Factors to consider:1. National accounts are included in above totals.2. Unknown what % of accounts have wording on contract $960,776.63 $1,088,722.96 $1,218,064.85 $1,855,601.493. Unkown if locations that already charged extra make up will be able to apply spec cut chg.

5. Amount could be more if size parameters were more strict (ie. include 3XL).6. Amount could be more if charge was more than $.10 per item in inventory.

Potential annual revenue increase dollars=

4. Amount will be more if size parameter matrix

e Improvement Opportunities for the Rental from Special Cut Charges

Ted Gemperle

Potential additional weekly rental dollars=

56

Hitting the Bottom Line

1. Company overview

2. Our First Steps

3. Fueling the Fire




57

Cintas Six Sigma Culture

DELIVERY/CYCLE

TIME

COST

QUALITY, REVENUES & CUSTOMER SATISFACTION

DRIVE DOWNDRIVE DOWN

PRODUCE WORLD CLASS QUALITYMAXIMIZE REVENUE

EXCEED CUSTOMER EXPECTATIONS

DRIVE UP

58

Crease Retention Project

59

Crease Retention Project

60

Design of Experiments (DOE)

StdOrder RunOrder Oven Time Oven Temp Press Pressure Press Temp Press Time 10 Washings 50 Washings1 1 11.0 290 60.0 250 21.02 2 16.0 290 60.0 250 14.03 3 11.0 350 60.0 250 14.04 4 16.0 350 60.0 250 21.05 5 11.0 290 95.0 250 14.06 6 16.0 290 95.0 250 21.07 7 11.0 350 95.0 250 21.08 8 16.0 350 95.0 250 14.09 9 11.0 290 60.0 300 14.010 10 16.0 290 60.0 300 21.011 11 11.0 350 60.0 300 21.012 12 16.0 350 60.0 300 14.013 13 11.0 290 95.0 300 21.014 14 16.0 290 95.0 300 14.015 15 11.0 350 95.0 300 14.016 16 16.0 350 95.0 300 21.017 17 11.0 290 60.0 250 21.018 18 16.0 290 60.0 250 14.019 19 11.0 350 60.0 250 14.020 20 16.0 350 60.0 250 21.021 21 11.0 290 95.0 250 14.022 22 16.0 290 95.0 250 21.023 23 11.0 350 95.0 250 21.024 24 16.0 350 95.0 250 14.025 25 11.0 290 60.0 300 14.026 26 16.0 290 60.0 300 21.027 27 11.0 350 60.0 300 21.028 28 16.0 350 60.0 300 14.029 29 11.0 290 95.0 300 21.030 30 16.0 290 95.0 300 14.031 31 11.0 350 95.0 300 14.032 32 16.0 350 95.0 300 21.033 33 13.5 320 77.5 275 17.534 34 13.5 320 77.5 275 17.535 35 13.5 320 77.5 275 17.536 36 13.5 320 77.5 275 17.5

61

Baton Rouge Linen Project

Problem/Goal Statement:

The Baton Rouge Linen Facility is operating at excessive material costs.

The goal of this project is to reduce linen material cost from a monthly average of 19% to a monthly average of 15% - while improving customer commitments from 60% to 100%

62

Baton Rouge Linen Project Tools

• Establish measurements

• 5 S

• Process Mapping

• Value Stream Mapping

• Work Flow Analysis

Sort Set in Order

Shine Standardize Sustain

63

Starting Clutter (1 of 14 areas)

64

Items to be discarded

65

Dashboard: Linen Material Cost Project

II. SERVICE LEVEL

0%10%20%30%40%50%60%70%80%90%

100%6/

1

6/4

6/9

6/14

6/17

6/22

6/25

6/30 7/

6

7/9

7/14

7/19

7/22

7/27

7/30 8/

4

AC

CU

RA

CY

SERVICE LEVEL PRIOR TO REWORK

SERVICE LEVEL FOLLOWING REWORK

66


III. BACKLOG VALUE (SOIL)

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

PLANNED VALUEVALUE ESTIMATE

125 carts

100 carts

75 carts

50 carts

25 carts

BACKLOG: A CART OF SOILED LINEN THAT HAS BEEN AT THE PLANT FOR MORE THAN 16 HOURS.

67


IV. LINEN INJECTIONS

$0$1,000$2,000$3,000$4,000$5,000$6,000$7,000$8,000$9,000

$10,000

6/1

6/4

6/9

6/14

6/17

6/22

6/25

6/30 7/6

7/9

7/14

7/19

7/22

7/27

7/30 8/4

FYE04AVG

BOTH $ PURCHASED

FOTH $ PURCHASED

FY04 AVG $7,700/day

6 week effort; $856,000/year benefit6 week effort; $856,000/year benefit

68

International Transit Time Project

The Issue:

• Haiti and Honduras to Ashland DC varies significantly (range: 12 – 26 days) and excessive; on average 17.5 days.

• Causes Production Planning to carry excess safety stock inventory at the main DC.

69

Process (1) Process (2) Process (3) Process (4) Process (5) Process (6) Process (7)

Ref # Plant Plant reported ship date

Container arrived at port

I/E receives paperwork from plant

I/E sends paperwork to

Broker

Entry filed by Broker

Entry cleared by Customs

Date received at DC

Age of shipment

Days to complete shipment Trailer/Container Carrier

R14478 PRISA 6/28/2006 7/2/2006 7/3/2006 7/5/2006 7/5/2006 7/10/2006 7/12/2006 14 SMLU 845093-0 SeaboardR14479 PRISA 6/28/2006 7/5/2006 7/3/2006 7/3/2006 7/13/2006 7/14/2006 7/20/2006 22 SMLU 7817094-4 SeaboardR14481 CDH 6/27/2006 7/5/2006 7/3/2006 7/3/2006 7/5/2006 7/10/2006 7/14/2006 17 CMCZ 811167 CrowleyR14482 IRA 7/2/2006 7/5/2006 7/3/2006 7/3/2006 7/6/2006 7/6/2006 7/10/2006 8 653380 LandstarR14485 EUR 7/1/2006 7/6/2006 7/3/2006 7/5/2006 7/6/2006 7/10/2006 7/13/2006 12 KKLZ 11314-8 SeaboardR14486 CDH 7/3/2006 7/8/2006 7/5/2006 7/6/2006 7/10/2006 7/10/2006 7/14/2006 11 CMCZ 833675 CrowleyR14487 IA 7/1/2006 7/5/2006 7/4/2006 7/6/2006 7/10/2006 7/10/2006 7/12/2006 11 SCSU 450295-1 AntilleanR14488 IA 7/1/2006 7/5/2006 7/4/2006 7/6/2006 7/10/2006 7/10/2006 7/12/2006 11 AMLU 459896-5 AntilleanR14489 Gluma 7/6/2006 7/7/2006 7/6/2006 7/6/2006 7/7/2006 7/8/2006 7/12/2006 6 638336 LandstarR14490 ENS 6/30/2006 7/7/2006 7/3/2006 7/6/2006 7/7/2006 7/7/2006 7/12/2006 12 633136 LandstarR14491 IRA 7/6/2006 7/8/2006 7/6/2006 7/7/2006 7/7/2006 7/12/2006 7/17/2006 11 638844 LandstarR14494 Prisa 7/4/2006 7/9/2006 7/7/2006 7/7/2006 7/10/2006 7/10/2006 7/14/2006 10 SCZU 145666-1 SeaboardR14495 ENS 7/8/2006 7/10/2006 7/10/2006 7/10/2006 7/10/2006 7/10/2006 7/14/2006 6 633666 LandstarR14497 IA 7/8/2006 7/12/2006 7/10/2006 7/10/2006 7/12/2006 7/14/2006 7/18/2006 10 UESU 483536-7 AntilleanR14498 IA 7/8/2006 7/12/2006 7/10/2006 7/10/2006 7/12/2006 7/14/2006 7/17/2006 9 AMLU 450183-0 AntilleanR14499 EUR 7/8/2006 7/12/2006 7/10/2006 7/10/2006 7/12/2006 7/14/2006 7/20/2006 12 SMLZ 81006-5 SeabordR14500 GLUMA 7/10/2006 7/12/2006 7/11/2006 7/12/2006 7/12/2006 7/12/2006 7/17/2006 7 686034 LandstarR14501 CDH 7/11/2006 7/15/2006 7/12/2006 7/12/2006 7/19/2006 7/19/2006 14 CMCZ 834654 CrowleyR14502 IRA 7/11/2006 7/13/2006 7/12/2006 7/12/2006 7/13/2006 7/13/2006 7/18/2006 7 653337 LandstarR14503 Prisa 7/7/2006 7/12/2006 7/13/2006 7/13/2006 7/17/2006 7/18/2006 7/21/2006 14 SMLU 845407-5 SeaboardR14504 Prisa 7/7/2006 7/12/2006 7/13/2006 7/13/2006 7/17/2006 7/17/2006 7/21/2006 14 SMLU 849768-9 SeaboardR14058 ENS 7/15/2006 7/17/2006 7/17/2006 7/17/2006 7/17/2006 7/17/2006 10 631563 LandstarR14509 Gluma 7/17/2006 7/17/2006 7/17/2006 7/17/2006 7/17/2006 7/19/2006 8 637578 LandstarR14510 Prisa 7/17/2006 7/17/2006 7/17/2006 7/17/2006 7/18/2006 7/18/2006 8 UXXU 480819-2 SeaboardR14511 IA 7/15/2006 7/19/2006 7/17/2006 7/18/2006 7/20/2006 7/20/2006 10 FSCU 658428-2 AntilleanR14512 IA 7/15/2006 7/19/2006 7/17/2006 7/18/2006 7/20/2006 7/20/2006 10 AMZU 837053-5 AntilleanR14513 IA 7/15/2006 7/19/2006 7/17/2006 7/18/2006 7/20/2006 7/20/2006 10 FSCU 613142-9 AntilleanR14514 IRA 7/17/2006 7/19/2006 7/18/2006 7/18/2006 7/19/2006 7/19/2006 8 638572 LandstarR14516 EUR 7/15/2006 7/20/2006 7/18/2006 7/18/2006 7/21/2006 7/21/2006 10 SMLZ 81020-4 SeaboardR14517 Prisa 7/15/2006 7/20/2006 7/19/2006 7/19/2006 7/21/2006 7/21/2006 10 SMLU 849557-8 SeaboardR14518 Prisa 7/15/2006 7/20/2006 7/19/2006 7/19/2006 7/21/2006 7/21/2006 10 SMLU 849010-7 SeaboardR14520 CDH 7/17/2006 7/20/2006 7/20/2006 8 CMCZ211919 Crowley

7 Day Average = 4.14 3.00 0.38 2.44 0.27 4.67 13.1730 Day Average = 3.91 2.66 0.62 2.33 1.04 4.59 11.7560 Day Average = 4.15 3.01 1.23 3.29 1.08 5.25 14.56

Average calendar days per process


70

302418126

20

15

10

5

0

302418126

20

15

10

5

0302418126

Haiti&Hond April Haiti&Hond May Haiti&Hond June

Haiti&Hond July Haiti&Hond August Haiti&Hond Sept.

Haiti&Hond April

18.35StDev 4.380N 20

Haiti&Hond JuneMean 18.26StDev 6.481

Mean

N 42

Haiti&Hond JulyMean 12.97StDev 3.843N 31

Haiti&Hond August

17.2

Mean 13.47StDev 3.223N 32

Haiti&Hond Sept.Mean 11.94StDev

StDev

2.651N 34

2.658N 10

Haiti&Hond MayMean

Prisa, IA, CDH, Euromoda


71

Digitized Logo Project

72


73


74


Wait at Digitizer,Editor or

Graphic Artist Desk

Wait in Queue within Folders - based onpriorities and backlog

Wait until end of shift Wait until all logoIDs are entered

Waiting for Digitizing Clerkto distribute for scanning Wait within Folders

Wait from time complete until picked up byCustomer Service Wait for distribution Awaiting Quality Review Awaiting Packaging Awaiting final shipping Awaiting final

shipping

Digitizing Department: BASELINE Value Timeline

Swatching (Status 40) to Swatches sent to Customer (Status 62)

Accumulation: First, Second and Third shiftswatches from previous day await cleanup

Awaiting final completion of cleanup(approx 8 to 11am) Awaiting final approval

Drawing not to scale

75


Digitizing Cycle Time Performance From Order Receipt to Mailing of Swatch to Customer

0

1

2

3

4

5

6

7

8

9

08/09

/0108

/22/01

09/05

/0109

/18/01

10/01

/0110

/12/01

10/25

/0111

/07/01

11/20

/0112

/04/01

12/17

/0101

/03/02

01/16

/021/2

9/200

22/1

1/200

22/2

5/200

23/8

/2002

3/21/2

002

4/3/20

024/1

2/200

24/2

1/200

24/3

0/200

25/9

/2002

5/18/2

002

5/27/2

002

6/5/20

026/1

4/200

26/2

3/200

27/2

/2002

7/11/2

002

7/20/2

002

7/29/2

002

8/7/20

028/1

6/200

28/2

5/200

2C

ycle

Tim

e (D

ays)

Goal: 1 day Turn-around

Phase 1 Improvements

Project Kickoff

Phase 2 Improvements

76

Vendor Collaboration

Improving Performance

77

GSC Project Example

Cintas Vendor

78

GSC Project Example

Cintas Planner Faxes PO to

Workrite Customer Service Manager

WR Customer Service Manager Confirms Receipt

via Return Fax

WR Customer Service Manager Allocates Order to

WR Planning

Oxnard Plant Cuts Order

Cut Pieces Shipped to One of

Four Mexico Plants for Sewing

Quality Garment Shipped to Cintas

DCs

Start

End

WR Planning Generates Cut Schedules for Oxnard Plant and Sew Schedules

for Mexico Plants**

WR Customer Service Manager

emails ASN to Cintas Sourcing

Administrator

Mexico Plant Sews Order and

Performs QC Checks

Finished Garment Shipped to Oxnard

Plant

QC Check by Oxnard Plant

** Assumes raw material on-hand and excludes cut specials sewn at Oxnard plant

Finished Garment Shipped to

Memphis Plant

Quality Garment Shipped to Cintas

DCs

End

WR Customer Service Manager

emails ASN to Cintas Sourcing

Administrator

QC Check by Memphis Plant

4 weeks1 week 1 week 1 week

1 weekNew Process

July 11th

1 week

8 weeks

7 weeks

79

GSC Project Examples

Addressed All Reasons

Co

un

t

Per

cen

t

Early/Late Ships

Count23.3 10.0 5.0 5.0 3.3

Cum % 53.3 76.7 86.7 91.7

32

96.7 100.0

14 6 3 3 2Percent 53.3

Other

Capa

c ity/Pla

nning

Issu

es

ASN Sen

t Lat

e

Capa

city I

ssues

/Inco

rrec t

LT

Cont

racto

r Per

form

ance

Issu

es

Ship

Prod

uct W

hen A

vailab

le

60

50

40

30

20

10

0

100

80

60

40

20

0

Pareto Chart of Early/Late Ships

80

GSC Project Example

8 weeks

8 weeks

8 weeks

8 weeks

8 weeks

8 weeks

14 weeks*

14 weeks*

8 weeks

8 weeks

GAINS LT (1-3-06)

8 weeks

8 weeks

8 weeks

8 weeks

8 weeks

8 weeks

8 weeks

8 weeks

8 weeks

8 weeks

GAINS LT (3-1-06)

12 weeks

12 weeks

12 weeks

12 weeks

10 weeks

10 weeks

14 weeks

14 weeks

12 weeks

12 weeks

GAINS LT (9-1-05)

16 weeks298ULT70NB60694-20

16 weeks298ULT70MB60694-80

16 weeks231IND70NB60680-20

16 weeks231IND70MB60680-80

12 weeks131ULT95NB82302-20

12 weeks131IND95NB82351-20

16 weeks110NMX60RB737-26

16 weeks110NMX60NB737-20

16 weeks431IND95NB70644-20

16 weeks431ULT95NB70640-20

GAINS LT (5-1-05)

WR Style #Cintas #

8 weeks

8 weeks

8 weeks

8 weeks

8 weeks

8 weeks

14 weeks*

14 weeks*

8 weeks

8 weeks

GAINS LT (1-3-06)

8 weeks

8 weeks

8 weeks

8 weeks

8 weeks

8 weeks

8 weeks

8 weeks

8 weeks

8 weeks

GAINS LT (3-1-06)

12 weeks

12 weeks

12 weeks

12 weeks

10 weeks

10 weeks

14 weeks

14 weeks

12 weeks

12 weeks

GAINS LT (9-1-05)

16 weeks298ULT70NB60694-20

16 weeks298ULT70MB60694-80

16 weeks231IND70NB60680-20

16 weeks231IND70MB60680-80

12 weeks131ULT95NB82302-20

12 weeks131IND95NB82351-20

16 weeks110NMX60RB737-26

16 weeks110NMX60NB737-20

16 weeks431IND95NB70644-20

16 weeks431ULT95NB70640-20

GAINS LT (5-1-05)

WR Style #Cintas #

* Fabric issues with supplier

50% Reduction in Lead Time Achieved

81

Lessons Learned…pitfalls

1. Waiting to get company-wide coverage

2. “Loose use” of Six Sigma resources – no structure

3. A focus on Cost Reduction versus Best Value

4. Not linking into personnel incentives

5. Staffing a project with too few or ineffective players

6. Thinking that Six Sigma training is a “Silver Bullet”

82

GSC Project Example

Shipping Performance Continues to Improve

Month

Prop

orti

on

Mar-06Jan-06Nov-05Sep-05Jul-05May-05Mar-05Jan-05

0.9

0.8

0.7

0.6

0.5

0.4

0.3

0.2

0.1

0.0

_P=0.6686UCL=0.6760LCL=0.6613

1 21

1

1

1

1

1

1

1

1

1

1

1

11

1

P Chart of OnTime by Improvement Grp

Tests performed with unequal sample sizes

83

GSC Project Example

The Result:

Intangible BenefitsImproved Customer SatisfactionFaster Response Time

Tangible Benefits$1.6MM Change in Working Capital$128K Productivity Savings

84

GSC Project Example

The Issue:

• The process for approving a new supplier for re-sourcing rental products is taking anywhere between 7 months (for existing pattern/components) up to 11 months (for new pattern/components).

• This results in delayed productivity for Cintas.

85

GSC Project Example

Time

SourcingMerchandisingProduction PlanningQualityTextile Sourcing

Who

Start: Identify a VendorStop: PO Ready

When

Where

NASD/Direct SaleNew Product DevelopmentNon-Garments (i.e. Corporate Purchasing)

National Rental/Rental ProductGarmentsExisting Product“Re-sourcing”

What

ExcludesIncludes

Reduce Rental Product Approval Cycletime to 60 Days for Sample Delivery and 30-60 days for Testing and Approval (90-120 Days Total)

Project Scope

Time

SourcingMerchandisingProduction PlanningQualityTextile Sourcing

Who

Start: Identify a VendorStop: PO Ready

When

Where

NASD/Direct SaleNew Product DevelopmentNon-Garments (i.e. Corporate Purchasing)

National Rental/Rental ProductGarmentsExisting Product“Re-sourcing”

What

ExcludesIncludes

Reduce Rental Product Approval Cycletime to 60 Days for Sample Delivery and 30-60 days for Testing and Approval (90-120 Days Total)

Project Scope

86

GSC Project Example

Current State Future State

Process TimesCycletime:25.5 wks with iterations

(10.3 wks w/o iterations)Leadtime:11.9 wks with iterations

----------------------------------Total Time: 37.4 wks = 8.6 months = 262 days

Process TimesCycletime:12.6 wks with iterations

(7.3 wks w/o iterations)Leadtime:0.4 wks with iterations

----------------------------------Total Time: 13.0 wks = 3 months = 91 days

24.4 Weeks or 65% Reduction Identified

87

GSC Project Example

The Result:

Intangible BenefitsNew Measurement System ImplementedReduced Cycletime for Approval

Tangible Benefits$2.0MM One-Time Savings

88

On the Horizon

1. Company overview

2. Our First Steps

3. Fueling the Fire




89

Our next frontiers for Six Sigma

1. Supply Chain Driving Revenue

2. Sales Force Effectiveness

3. Leadership Development

4. Supply Chain Risk Mitigation

90






91

COST

GEOGRAPHY

Domestic Global

High

Low

Quantifying,

And charging

for RISK

in the Global

Supply Chain

Cost of Goods

Supply Chain Costs


92






93






94






95

Questions or Comments?Dave WheelerDave WheelerCintas CorporationCintas CorporationVice President, Global Production & LogisticsVice President, Global Production & Logistics

6800 Cintas Blvd6800 Cintas Blvd

Mason, Ohio 45040Mason, Ohio 45040

[email protected]@cintas.com(513) 754(513) 754--35493549

mailto:[email protected]

achieving supply chain excellence

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