The Acuity Business System

Russ Simpson, Talent Management and Organizational Effectiveness Acuity Brands Lighting 678-938-8304 cell

Overview

• Introduction

• What was the spark?

• Key Wins

• Improvement Opportunities

• Into the Gemba

Find the Nuggets

• Ask us Why today? We all learn from this.

• We are looking for your observations.

What was the Spark?

• New CEO

• Disruptive technology

• Global Competition

• 6 Sigma Foundation

The Genesis of ABS at Acuity Brands

• Letter from Vern

Nagal, Chairman and

CEO in Dec 2004

• Presented the Vision

of ABS for the

company

• He called for action

from every employee

Vern’s Vision

• Hallmark of ABS

– Winning at the

Customer

– global competitive

Cost structure

– Culture of excellence

and continuous

improvement

Vern’s Vision

Building ABS

“Line of Sight” to the

Customer

Deploy Lean tools

Change the way we work

…communication and

capabilities

What you can expect

Makes us a winner in the

market

Helps us exceed customer

expectations every time

Key Learning‘s

• Executive Support

• Up the Learning Curve (Year 1 – 4)

• Continuous Improvement (Year 5 on)

Key Learning’s:

Executive Support

The maniacal pursuit of the elimination of

waste…

from every business process with the ultimate

goal of providing World-Class Quality and

Delivery to our customers at the lowest

possible Cost.

Key Learning’s:

Executive Support

Elimination of Waste – Success Foundation

Key Learning’s:

Up the Learning Curve • Centralized Group

– Established an ABS Office

– Training for all Leaders and Employees on ABS overview

– Specialized ABS Leadership Training

– ABS Newsletter

– ABS Bucks

• Tool Training

– Kaizen Events throughout the organization

– Standardized KPI boards with audits

– Value Stream Mapping

• Other Changes

– Gain$hare Program

– Performance Management

Vehicle for Improvement -- Kaizen Events

It’s Not about the Numbers

It’s about the Results!!!

Bridging the Islands Channel\abs

Looking through the Windshield

instead of the Rear View Mirror

• To meet the company’s

objectives in terms of:

– E – Environmental Health and Safety

– Q - Quality (Internal and External)

– D - On-Time Delivery

– C – Cost

– I - Innovation

Value Stream Mapping

Raw material levels

Customer

Acuity

Shipping

Material ControlQuality Control

Raw Materials

Warehouse

Receiving and Material

Control

Supplier

Raw Materials

Superior Felt

I

Planning / Scheduling / Purchasing

- MRP (M2M)

- Excel

- AX

Sur Seal Current State Map - 01-08-10

IKitting

Fax or Email PO

Die Cutting

Gasket

Knife cut

Kathy - Reviews

the raw materal

levels and creates

Purchasing Orders

Production Meeting

2-7 day list of orders

reviewed

- Daily MeetingSupplier

Logistics Center

BOM

Check

Niki checks web

portal and email

orders daily

- downloads data

into spreadsheet

Job order verified

Kathy - Creates

Job ordersMaterial verified

from Spread

Sheet

Finished Goods

Warehouse

I

III

I I

I

Email

Web Portal

Supplier

Raw Materials

Rotor Clip

Supplier

Raw Materials

J-Bar

Kanban

Customer

Carrier

Web Portal

Hose Cutting

Assembly

Prep Area

Laminate

Block.

Bend

PSA

Sand BlastingMolded Rubber Trimming Machining

All - Capabilities

Std. Work

5-S

Std. Work

5-S

Std. Work

5-S

Std. Work

5-S

Visual

Management

Plant

5-S

Std. Work

5-S

Std. Work

5-S

Kanban

Kanban

Kanban

Gemba Walk

Rattle

Snakes

Std. Work

5-S

SMEDTPM

Std. Work

5-S

Cost

Reduction

Poke-

Yoke

Current State

Raw material levels

Total Lead Time

29,702 min

495.03 hrs

61.88 days

Lead 24 hrs. 1 hr. 336hrs. 7 hrs. 9 hrs. 8hrs. 4hrs. 2 hrs. 392 hrs.

Time 1,440 min 10 min 60 min 5 min 20,160min 420 min 540min 2 min 35 min 480 min 5 min 240 min 5 min 120 min 23,522 min.

86400 600 3600 300 1209600 25200 32400 120 2100 28800 300 14400 300 7200 1,411,320 sec.

Inventory 15,332$ $2,129 1,212$

120 hrs 40 hrs. 20 hrs. 180 hrs.

7200min 2400 min 1200 min 10,800 min.

432,000 144,000 72,000 648,000 sec.

Value Add 600 10800 32400 120 300 300 7200 Value Add 51720 sec.

Seconds

Non-Val Add 86400 3600 144000 300 1209600 144000 25200 2100 28800 72000 14400 Non Val. Add 1,730,400 sec

Value Add 10 180 540 2 5 5 120 Value Add 862 min

Minutes

Non-Val Add 1440 60 2400 5 20160 2400 420 35 480 1200 240 Non Val. Add 28,840 min

People Purchasing Receiving Kanban Prod. Scheduling Hose Cutter Prod. Lead Assembler Finished Goods Shipping Total People

1 1 1 1 1 1 4 1 1 12

Customer

Carrier

Shipping

Material ControlQuality Control

KanbanReceiving and Material

Control

Supplier

Raw Materials

Rotor Clip

I

Planning / Scheduling / Purchasing

- MRP (M2M)

- Excel

- AX

Sur-Seal Current State Map - 01-08-10

I

Fax or Email PO

AssemblyClamping = 4 people

Assebly and pkg.

= 6 people

Kathy - Reviews the

raw materal levels and

creates Purchasing

Orders

Production Meeting

2-7 day list of orders

reviewed

- Daily Meeting

BOM

Check

Niki checks web portal

and email orders daily

- downloads data into

spreadsheet

Job order verified

Kathy - Creates Job

ordersMaterial verified from

Spread Sheet

Finished Goods

Warehouse

I

II

Web Portal

updated

nightly

Hose Cutting

Supplier

Raw Materials

J-Bar

10min

1 day

1 hrs

- $15,332

- 90700 linear ft.

= 3 weeks

14 days

5min

- $2,129

= 1 week

4-10hrs. waiting

Clamping - 6hrs = 6300pcs.

Assembly and Pkg. - 6hrs = 6300pcs.

9 hrs. total

$1,212 = 3,150pcs,

=.5 week

=20 hours

5min

4 hours - staging to

complete order

5min

2 hours

1 day

2 min. per part

1hour for all Carrier

parts each day

This Analysis is to produce an order of 6300pcs.

2000M-319873-714

Move toward

the wood

shopI

20 - 50 min

Future State

Improvement Event Business Objective: Improve E-Q-D-C-I LAST UPDATED 1/8/2010

#### #### ##### ###### #### #### ##### ##### ##### #### #####

1/4 1/11 1/18 1/25 2/1 2/8 2/15 2/22 3/1 3/8 3/15 3/22 3/29 4/5 4/12 4/19 4/26 5/3 5/10 5/17 5/24 5/31 6/7 6/14 6/21 6/28

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26

KContols LC&D Value Stream

Mapping Event

Improve E-Q-D-C-I 1 1 M Preston M Wilz

K 5 S System Event Improve E-Q-D-C-I 4 1

K Visual Management Event Communication 6 1 M Preston

KAssembly 1 - Cell Creation -

Standard Work Event

Improve E-Q-D-C-I 8 1 M Preston

K Die Cutting - Standard Work

Event

Improve E-Q-D-C-I 8 1 M Preston

K Preco Change Over Event Cycle time reduction 8 1 M Preston

K TPM - Die Cutter Down time Reduction 8 1 M Preston

Status

LC&D Lead

Weekly Schedule

Lead

K=Kaizen

k=Mini K

p=Project

Event K, k, or p? Improvement

Sur-Seal Transformation Plan

Du

ratio

n

(w

ee

ks

)

Start W

ee

k

Transformation

Plan

Key Learning’s:

Continuous Improvement

• Recruiting Efforts

• Compensation Programs

• Training and Development

• Leadership Development

• Strategy Deployment

• Visual Management Boards Evolve

• Working on Problem Solving and Root Cause

Root Cause / Countermeasure

Why?

Idea

Idea

Idea

IdeaWhy?

Idea

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Idea

Idea

Questioning leads to Ideas!

Getting To Root Cause

Ask Why 5 Times!!

Improvement Opportunities

• Sustaining Results = Finding Root Cause

• Better Knowledge Sharing

• “It is not about the tools”

Find the Nuggets

• Ask us Why today? We all learn from this.

QUESTIONS