bowen e z go shingo prize case study

8/11/2019 Bowen E Z GO Shingo Prize Case Study

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Company Confidential 1

E-Z-GO Shingo Prize Case Study

Westy BowenVice President of Quality and Six Sigma

October 15, 2009


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E-Z-GOs Beginning State

A plaque outside the E-Z-GO weld shop shows the transformation of the facility andcommemorates the shops embarking on a journey of continuous improvement.

It reads, In 2007 the weld-shop team began a journey of continuous improvement.

This ongoing journey will transform the shop into a benchmark of premier fabrication

performance. This spot has intentionally been left unimproved, not as a look

backward, but as a constant reminder of the importance of moving forward.

History of AutocraticLeadership

Top down - do as you are told

Firefighting Heroes

2001 Strategy to Outsource

Dungeon Facilities

Aging Equipment


3/27

State of the Business

E-Z-GO was Losing Market Share and Less Profitablethan Main Competitor in an Oligopoly Market

1999 2000 2001 2002 2003 2004 2005 2006 2007F

Brand X Sales E-Z-GO Sales

1999 2000 2001 2002 2003 2004 2005 2006 2007F

Brand X NOP E-Z-GO NOP


4/27

Textron VisionTo be the premier multi-industry company recognized forour network of powerful brands, world-class enterprise

processes and talented people

E-Z-GO MissionTo be the premier provider of light transportation vehicles

achieving global recognition as the benchmark forcustomer satisfaction and financial results

E-Z-GO Values StatementTo fulfill these goals, E-Z-GO will exemplify

Textrons values of integrity, trust, respect and the pursuitof excellence which will enable us to become the employer

of choice in the industry

Strategic Direction: Premier


5/27

What is the Enterprise Shingo Prize?

Shingo Prize for Operational Excellence:

Established 1988;

Enterprise Level Prize Established 2008

Shingo Prize for Operational Excellence is named forJapanese industrial engineer Shigeo Shingo

Business Week stated that the Shingo Prize is theNobel prize of manufacturing

The Shingo Model Provides Engine for LeanTransformation

E-Z-GO Shingo Prize Video


6/27

Textron Business System Assessment

Section 1:CulturalEnablers(20%)

Section 2:BusinessOperating

System(45%)

Section 3:EnterpriseThinking(10%)

Section 4: BusinessResults(25%)

1.1Leadershipand Ethics

1.2PeopleDevelopment

1.3Empowerment

and Involvement1.4 Environmental,Health & Safety

2.1BusinessManagement and LeanPrinciples

2.2 CustomerManagement

2.3Product/ServiceDevelopment

2.4 Operations

2.5SupplyManagement

3.1 LeanEnterprise Culture

3.2 PolicyDeployment

4.1 PeopleDevelopment

4.2Quality

4.3Delivery

4.4Cost

4.5Financial Impact

4.6CompetitiveImpact

TBSA Aligned with Shingo Prize Criteria


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Goal set in 2004: Shingo Gold in 08

Leadership Right People in Right Place

100% Turnover in Sr. Leadership Team (2002-2004)

Vision Established for Operational Excellence

Textron Challenge to Go for Gold

Textron Business System Assessment

Accelerator Pilot

Developed Roadmap

Lean Maturity Roadmap

Action Plans for Manufacturing and Functional Areas

Key is to Just Get Started and Include Everyone


8/27

Implementation Evolution

2004-2005: Cell Improvement

Single Point Kaizen Events

Big Impact Kaizen Events

2005-2007: Value Stream Improvement

Material Flow; Process Flow

Information Flow; Communication

Cultures, Mindsets and Behaviors (CMB)

2007-2008: Business Level Improvements

Goal Deployment (GDP/Hoshin)

Performance Management

Pro ject Leader Name Maintenance

Manufacturing

Engineering

Operations

Quality

Purchasing

ProductionControl

DesignEngineering

Sales/Marketing

Finance

Warehouse

OperatorMixedModel

Line

FleetPowertrain

Operator(OtherShops)

GB-NGGCTeam(Former

Back-shopexpertise)

OperationServices

Project 1 Hegel

Eliminate schedule dispersion and

create pull process from Pedal Box

(accelerator only) Back Shops

John

Thomann

Debbie

Burton,

Tommy

G arne r A nn T ate

Barry

Lenart Lori Daly

Mary

Hampton,

Barry

Austin

Rick

Schieberl,

( 1) TBD TBD

Project 2 Stern Powertrain Rebalance/ Layout/5S TBD

Ricky

Criss

James

Gonella

Raju

Janardhan

Kim

Schleiff

Spanky,

Marvin

(Lee)

Sims

John

Whitehea

d

Donna

Glascock,

Shane

Holley,

Reco Grant

Project 3 Corradino

Feasibilitystudyof moving line

over to Bldg 3

Gary

Toole

Don

Bingham Janie Burnsed

Russell

Watts

Herbert

Fryer

TBD

(Backshop)

(Least 2)

Steve

Franks;

David

Jones

Pr oj ect 4 Ke ndi nger De vel op Mat er ial Pl an for MP T l ine

Jeff

Wall

Krystal

Mottel

John

Schmidt

Jason

Muterspaugh

Orlando

Mays

Mike

Smith

TBD(Backshop)

(Least 2)

Safety/Maintenance/Operation

Svcs/ Forklift Operator as Floaterwith exception of Powertrain

changes. Will need dedicated

Maintenance person involved.

Shingijutsu Led Kaizen Event

Cross Functional Teams


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Initial TBSA February 2005


10/27

2006 High Level Lean Maturity Road Map


11/27

What is an Accelerator ?

How to build:

A lean Operating SystemSupporting InfrastructureAligned mindset and capabilities

Skilled practitionersTeam of ~ 20 full-time; 10 part-time

Proven in multiple environmentsStandard, but tailored to a specificsituation

On what matters most, asidentified by the TBSA

Relevantknowledge

Skilledpeople

Provenprocess

Focus

Reach outcontinuous

improvementmindset

2-5x faster

A proven process to achieve customer satisfaction, operational andfinancial improvement in a significantly accelerated sustainable way

A capability engine that builds the skills of management, supervisors andfront line workers so they will be able to drive continuous improvement


12/27

Accelerator Composed of 4 Teams

Process Flow

Physical Layout; Line Balancing

Material Flow

Line Side Inventory; Warehouse Mgt.

Right Part at Right Place at Right Time

Information Flow

Systems (MIS); MRP; Production Control

Cultures/Mindsets/Behaviors

Operator Involvement; Training

Order of Physical Activity and ChangesReverse Order of Impact to Sustain Improvements


13/27

Meeting Cadence

Workingteamsupdate

Content of meeting

Impactreview withALT

Staffupdates

Required

participation Frequency Duration

Accomplishments of dayProgress Value Stream. planmilestones

All Team LeadersFull time teammembers & ProcessOwners (as often

as possible)

Daily at4:30

30 min

Impact and ProgressFuture milestonesCountermeasures

Weekly 4-Blocker Review

ALT membersProject ManagerAll Process Owners

Weekly onThursdaysat 1PM

60 min

Impact to dateBarriers/roadblocksRoll-out plan to other value streams

ELTProject Manager

Monthly onspecific Staff

meetings

15 min

Impact to date

Lessons learnedLearn from Cessna and Bell

Project Managers Weekly 30 min

Workingteamsupdate

Content of meeting

Impactreview withALT

Staffupdates

Required

participation Frequency Duration

Accomplishments of dayProgress Value Stream. planmilestones

All Team LeadersFull time teammembers & ProcessOwners (as often

as possible)

Daily at4:30

30 min

Impact and ProgressFuture milestonesCountermeasures

Weekly 4-Blocker Review

ALT membersProject ManagerAll Process Owners

Weekly onThursdaysat 1PM

60 min

Impact to dateBarriers/roadblocksRoll-out plan to other value streams

ELTProject Manager

Monthly onspecific Staff

meetings

15 min

Impact to date

Lessons learnedLearn from Cessna and Bell

Project Managers Weekly 30 min

Daily, weekly, monthly touch points Established


14/27

Current State Value Stream Map

30% productivity lossDue to imbalanced line

70% of FTQ issues areFrom material shortage issues

50% of parts have a lead timeGreater than the order visibility; parts

are ordered from forecast

Excess inventoryin the yard


15/27

Future State Value Stream Map

Customer

Ship

Assembly

(Paced)

Custom CarsSMRs

Include Reconfigs

OE withTFC Tie

SIOP

SchedulingMPS, Traffic,

Sales, Load Seq

MRP

Suppliers

Receiving

InternalFabrication

Cars

Accy

Internal& Purchased

Internal

CommonParts

Drop-off

Warehouse

E-Z-GO3PL

RBW

Trailers

Raw Materials

FIFO

ECR/ECN

FIFO

Crate Cars

Line balanced acrossmodels

Order and forecastingClosely linked

Standard workFor incomingMaterial flow

Match orders withFG inventory


16/27

Themes

Impact

FTQInventoryaccuracy

High impact

Med impact

Visual management Practical problem solving

Strong performance dialogs Shared leadership vision Leadership standard work

Culture, Mind-sets, Behaviors

Performancemanagement

Process flow

Low impact

Production scheduling automated and streamlined Orders and quotations integrated material Effective control procedures that ensure accurate inventory parameters

InformationFlow

Balance line to takt and build capability Redesign line layout Design and document safer, more ergonomic and more efficient operations

Execution of PFEP across all MML parts Improvement of material flow via sequencing Standard work for all conveyance and material management

Material flow

Keys to drivingsustained impactacross MixedModel valuestream and E-Z-GO

Productivity

Design Principles - Metrics


17/27

Future state manningrequirements are~30% less:

Total work content per2+2G* = 2 hr 15 min

Cars per day = 85

Work content per day= 191 hr 15 min

Number of operatorsrequired** = 21(current = 31)

Some stations very close or over takt (when

walking time included) limiting production

capacity and causing waiting elsewhere

Red = walking

Orange = sub-assemblies

Yellow = variation

Green/blue = 2+2G work elements

On average, station cycle time is

30% lower than takt to meet 85

vehicles/daythere is significant

opportunity to rebalance to fewer

stations Takt = 85vehicles/day

Process Flow: Manage to Takt


18/27

Business Level Metrics Cascaded throughoutOrganization

Safety, Quality, Delivery, Cost (SQDC)

COUNTER MEASURES COUNTER MEASURES COUNTER MEASURES COUNTER MEASURESISSUE ACTION WHO DUE STATUS ISSUE ACTION WHO DUE STATUS ISSUE ACTION WHO DUE STATUS ISSUE (P/N) ACTION WHO DUE STATUS

# of Safety/Ergo Improvements Implemented TSS Survey Results # Projects Closed $ Cash Improvement

DELIVERY

Key Performance Indicators - Textron Six Sigma

CloseTSSProjects that generateCash$(reducedinventory, usedcars,

receivables; increaseNOP)Numberof distinct safetyand ergonomic improvements implementedi nall

Black Belt and GreenBelt projects closedduringthemonth

SatisfactionSurveyof overallexperiencewithTSSfrompartic ipants

(Process Owners, Champions, Teammembers)onBBproject. Numberof GreenBelt andBlack Belt projects closedduringthemonth

COST/ PRODUCTIVITY5s / SAFETY QUALITY

0

1

2

3

4

5

6

7

8

9

10

0

1

2

3

4

5

6

7

0

2

4

6

8

10

12

14

16

18

20

0.0

100,000.0

200,000.0

300,000.0

400,000.0

500,000.0

0

200

400

600

800

1,000

1,200

1,400

J

M

M

A

D

F

A

J

J

S

O

N

J

F

A

M

J

J

A

O

N

S

D

M

J

F

A

M

J

J

A

O

N

D

M

J

F

A

M

J

M

J

A

O

S

N

D

J F M A M J SAJ O N D J F M A M J SAJ O N D J F M A M J SAJ O N D J F M A M J SAJ O N D

MonthlyObjectiveAchived MontlhyObjectiveNot Achived




MonthlyObjective MontlhyActual MonthlyObjective MontlhyActual MonthlyObjective MontlhyActual MonthlyObjective MontlhyActual

S

0

50

100

150

200

250

300

350

400

450

500 MonthlyObjective MontlhyActual


19/27

Material Flow: Sequence Center to Assembly


20/27

Control Block

SEQ - STEP (What) -

2

On Option line of main screen, Type in

the part number, buyer number, the

warehouse, and the delivery date

SYM -

3 Type "F-8" to update

Send e-mail or call applicable supplier

to determine shipping schedule

4

1Log onto the 36/PMR session on AS400

system.

A Textron Company

1

Improvements Made

Short-Term MPS Tool

Expanded MRP visibility to

configured quotes

Reduced PAR volume

SIOP impact tool for what-if analysis

Standard work for

Buyer/Planners

Standard work for ChangeNotice Implementations

Piloting A2 Kanban processfor windshields

Information Flow: Scheduling


21/27

The work has been very hard butin the end has been very

rewarding.We know that there are still some

things that need to be checkedand worked out

You can movearound the areas

a lot easier

With the new waythe line moves, it

give me more timeto get done what I

need to do

Parts are

stocked up all ofthe time now

Now we run bythe schedule,

unless wehappen to be

out of aparticular part

Now it is not ascluttered and

things are wellorganized, so

we have plentyof room

Before the changes on the assembly manypeople were weary of it and didnt think

actually that it would work.So far it has worked out extremely well.

I think the process has been beneficial toeveryone on the line as well as to E-Z-GO.

Partspresentationis a MAJOR

change

The big differenceI see is how the

line runs now itlooks like the lineis running slower

Communicationboards help usknow what is

going on and whatwe have to face

for the day

Now it is a lotSAFER to

work

CMB Team: Employee Engagement


22/27

Cultures Mindsets and Behaviors

Most Important Link

Begin to See Shift in Lean Capabilities

John Ward Lean Team Video


23/27

Evolution to Business Level Improvement Goal Deployment Process (Hoshin Planning)

Targets to Improve (TTIs)

Key Process Improvement Metrics (KPIVs)

Rigorous Reviews with Countermeasuresl Operations - Key Operational Improvements l l l l m l m m l

l Growth - Develop and Execute Growth Agenda l m u m m m m m l m

l Customer - Develop and Execute Action Plans l l l l u l m

GrowRevenue

X%byYYear

ImproveCustom

erSatisfactionbyX%

ImproveCustom

erOnTimeDeliveryfromX%toY%by(date)

ImproveDPMO

fromXtoYby(date)

ImproveFillRatefromXtoYby(date)

ReduceNewProductIntroductionCycleTimebyX%by(date)

ReduceFreight

CostbyX%by(date)

ImproveWarran

tyas%SalesbyX%by(date)

ReduceSG&AExpensebyXby(date)

VicePresident,

GlobalSales

VicePresident,

BusinessDevelopment

VicePresident,

HumanResources

VicePresident,

Quality

VicePresident,

Operations

ChiefFinancialOfficer

ChiefInformatio

nOfficer

VicePresident,

Engineering

VicePresidentCommunicationsandBrandManagement

l l World Class Customer Satisfaction

l l Engaged Employees u

l l Achieve Shingo Prize for Enterprise Level l

l l Grow Business m Enabling Resource

Action Plan Owner

Primary IP Owner

Top LevelPriorities/Actions

2009 AnnualPremier Objectives

4 Year Premier

Objectives

Targets toIm rove

KPI Owner 2008 JOP2009 YTD

ACTJUN JUL AUG SEP OCT NOV DEC Full Year

Talent0.90 KPI Stretch 0.90 0.90 0.90 0.90 0.90 0.90 0.90 0.901.35 Act. / Fore. 1.15 1.26 1.09 0.97 0.99 0.90 0.85 0.85

30.1% KPI Stretch 30.1% 30.1% 30.1% 30.1% 30.1% 30.1% 30.1% 30.1%32.6% Act. / Fore. 32.6% 32.6% 32.6% 32.6% 32.6% 32.6% 32.6% 32.6%

0.9% KPI Stretch 1.1% 1.2% 1.4% 1.5% 1.7% 1.8% 2.0% 2.0%0.6% Act. / Fore. 0.6% 0.6% 0.6% 0.6% 0.6% 0.6% 0.6% 0.6%

Cash11,375$ KPI Stretch 11,325$ 11,275$ 11,225$ 11,175$ 11,125$ 11,075$ 11,075$ 11,075$

$10,754 Act. / Fore. $11,200 $10,600 $10,200 $9,800 $9,500 $9,000 $9,000 9,000$

9,188$ KPI Stretch 8,267$ 7,992$ 8,128$ 8,324$ 8,332$ 8,002$ 7,786$ 7,786$$8,118 Act. / Fore. $7,500 $ 9, 30 0 $ 8, 72 6 $8,274 $ 8, 78 6 $ 8, 82 3 $7,586 7,586$

2,400$ KPI Stretch 2,600$ 2,600$ 2,100$ 2,000$ 1,900$ 1,800$ 1,700$ 1,700$2,521$ Act. / Fore. 1,715$ 1,635$ 1,555$ 1,475$ 1,395$ 1,315$ 1,300$ 1,300$

1,629 KPI Stretch 233 300 638 500 700 700 700 5,4001,865 Act. / Fore. 233 225 130 403 306 419 460 4,041


23,809 KPI Stretch 5,753 3,060 5,451 5,559 8,502 5,858 4,677 65,22324,139 Act. / Fore. 5,004 3,060 5,451 5,559 8,502 5,858 4,677 62,250

8,396 KPI Stretch 1,599 1,679 2,162 1,819 2,349 1,981 1,453 24,700

8,038 Act. / Fore. 2,000 1,679 2,162 1,835 2,535 1,981 1,453 21,68319,205 KPI Stretch 6,424 6,240 6,240 6,240 6,224 6,214 6,214 63,00024,113 Act. / Fore. 4,800 5,860 5,860 5,860 5,900 5,900 5,907 64,200




NOP$56,286 KPI Stretch 10,493$ 12,346$ 12,787$ 12,052$ 11,503$ 11,399$ 7,880$ 134,748$$43,218 Act. / Fore. $9,668 $9,071 $11,589 $9,894 $13,489 $10,486 $7,888 115,302$


3,807$ KPI Stretch 497$ 693$ 516$ 476$ 525$ 671$ 1,071$ 8,256$4,753$ Act. / Fore. 497$ 693$ 516$ 476$ 508$ 577$ 821$ 8,842$

(1,053)$ KPI Stretch 266$ 931$ (270)$ (538)$ (505)$ (607)$ 298$ (1,479)$(2,511)$ Act. / Fore. 574$ 1,060$ (211)$ (904)$ (1,138)$ (184)$ 1,148$ (2,167)$

9.0 KPI Stretch 9.3 10.7 7.1 7.6 7.5 7.5 7.4 8.47.2 Act. / Fore. 9.3 10.7 7.1 7.6 7.5 7.5 7.4 8.4

Process98% KPI Stretch 98% 98% 98% 98% 98% 98% 98% 98%98% Act. / Fore. 98% 98% 98% 98% 99% 99% 99% 98%

157 KPI Stretch 147 138 128 119 109 100 90 90145 Act. / Fore. 147 138 128 119 109 100 90 90

$8.9M

Collins $12.3M

Collins

Moinikunta

$9.3M

$38.8M

141

Specialty SIOP demand forecast accuracy of 95% Miller

Total Net Warranty from $9.3M to $8.3M by 12/31/09 Younger

60,958

Decrease Branch Stock Specialty inv by $1.3M by

12/31/09 ($5.3M to $4M / Units - 1,511 to 1,000)5.3M

Miller

Miller

Reduce Specialty floorplan from $44.9m to $34m

by 12/31/09 (Units 8,600 to 6,515)Miller

Decrease Used Car Inventory by $5.8M (to 17,379

units) by 12/31/09 ($1,473 per unit)

Jhant/Miller $2.6M

Decrease Branch Parts Inventory from $2.2M to

$1.7M by 12/31/09Jhant $2.2M

Sell 5,400 additional used golf cars to fleet channel

by 12/31/09Jhant 0

Exceed AOP targets for Raw/WIP inventory by

$1.3m by 12/31/09

Reduce Labor Hours Per Vehicle from 8.9 to 8.4 for

2009

Decrease Augusta Finished Goods Inventory from

$2.6M to $2.1 by 12/31/09

Miller

Achieve Used car sales of 63,000 by 12/31/09

(includes used cars to the fleet channel)

Fleet SIOP demand forecast accuracy of 95% Jhant

Decrease Parts inventory by $3.3M by 12/31/09

Achieve AOP Specialty sales of $134.7M

Improve FTQ from 96% to 98% by 12/31//09

Miller

Achieve AOP Parts sales of $40M Kopay

Neely

Safety - Achieve TRIR of .90 by 12/31/09 Johnson

Reduce Regretted Turnover from 4% to 2% by

12/31/09

Improve CR/CN Cycle Time from 141 days to 90

days by 12/31/09

K. Reeves

Sustain Inclusive Workforce at 30.1% by 12/31/09 K. Reeves

Achieve AOP targets for total manufacturing

variancesDraper

Heffline

30.1%

0.69

$3.5M

134.7M

$44.9M

$31M

NA

4.0%

NA

8.9 est

96%


24/27

Driving CI Responsibility to Operator

Developed Curriculum and Schedule to Train 80%Workforce in Lean Techniques

Attend 24 Hours of Training

Complete 2 projects (team or individual) in 12 Month Period

Certify as an E-Z-GO Lean Technician

Promotes Kaizen as Way of Life: Everyone EmpoweredSession Course Location Instuctor

Time

allotment in

minutes

Session 1Material Movement Kanban Simulation Bldg III T/Room Deb Smith/Eric Ethington 110

What is World Class Bldg III Plant Renee Stern 55

Finance Bldg III Plant Jason Alford 55

Session 3 Standard Work Bldg III Plant Rick McCoy / Allen Evans 110

Visual Management Bldg III Plant Scott Seigler 55

Poka Yoke Bldg III Plant Chris Furman 55

Session 5 5S Bldg III Plant Eric Safford 110

Question & Answer with Plant Manager QA T/Room Darryl Heffline 45

Team Building QA T/Room Vito Corradino 65

Session 7 7 Wastes Bldg II plant Jay Johnson/Mike Rouse 110

Quality Bldg II plant Vivek Moinikunta 55Supply Chain Bldg II plant John Collins 55

Intro to Rack Building Bldg II plant Shawn Flanagan/Marlon Bray 55

Total Productive Maintenance (TPM) Bldg II plant Mark Thrasher 55

Session 10One Piece Flow (Lego race cars) LeanSimulation

Bldg I T/Room Goran Rajkovic/Poppie Blue 110

Practical Problem Solving (PPS-5whys/

Bldg II plant Brad Hanson 55

SQDC - Metrics (Safety, Quality,Delivery, Cost)

Bldg II plant John Thomann 55

"Jeopardy" Reinforcement Questions This will be conducted in the lastclass of the day by all instructors

All Instructors 55

Session 2

Session 4

Session 6

Session 8

Session 11

Session 9


25/27


26/27

Accelerator is Results Driven:

Metric Before After

Operator Load Efficiency 54% 98%

First Time Quality 51% 98%

Inventory Accuracy 82% 97%

Schedule Adherence 62% 95%

Be Patient: Likely to Get Worse BeforeImprovement is Realized


27/27

What is Next?

Sustain is more important than ever

Continuous improvement is part of everyones job

Other recognition for best in class (Industry Week)

Benchmarking tours

Pushing Continuous Improvement to Suppliers andCustomers

The Journey Continues

bowen e z go shingo prize case study

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