Strategic IntegrationBusiness Case

Cultural Evaluation Project Plan

Policy Deployment MatrixResults

Growth Plan

Strategic Integration Project

Business Problems

Poor Delivery and Customer ServiceCost Competiveness Scrap at 5% of sales

Plant losing significant cash and income

.

Company Culture Evaluation

Operations No lean work

Labor underutilized Bottleneck not managed High energy cost electricity

used for wash water $1,100,000 energy bill

No significant safety process

Bonding Weekly customer rejects On time delivery is dismal Strained personal

relationships, customer can go elsewhere for parts.

Product Offering New product introduced with significant quality problems.

Quality $1,000,000 in scrap No process controls

Human Resources No training of senior or middle

managers. Direct labor are basically

considered machine loaders

Technology Sister plant making similar

product are automated to reduce labor cost.

Projects to move from A to BOperations

Plant layout improvement to improve bottleneck

Standard work project to improve labor utilization.

Standard work project to improve labor utilization in assembly/honing etc.

Do significant cap ex energy project to convert electric heat to gas heat. Bonding

Create written corrective actions for all customer rejects to demonstrate we have controls on the problems.

Make presentation on bottleneck improvements and lean improvements.

.

Product Offering Suggest design changes in new product.

Quality Perform Black Belt level

project and 4 Green Belt projects. Create controls in plating and

machining.

Human Resources Eliminate some managers. Training for managers, ISO,

Greenbelt, Lean, Safety, Train direct labor in SPC,

Process control, and lean implementation

Technology Create robust processes

ready for automation.

Strategic Integration Project

Long term plan: Solve all of the problems and leverage the knowledge to automate the plant.

Project PerformanceAll projects at edwardhalljones.com

Lean Process DesignScorecard A3: 2 stroke machining

Plant layout Project

Resilient Quality Systems Design Case Study: Improve Process Control, Implement SPC, Resilient Corrective

Actions----- summary of actual work performed

Six Sigma Projects Broken Fins, Perpendicularity of bore, Compression Volume

Energy SystemsCase Study: Reduce Process Energy

Use Minitab to track cost improvement

Note reduction in cost variation as lean is implemented

Determine the supply curveDemonstrates the effectiveness of continuous improvement and the effects

of volume on price.

Growth Plan Sales 65% lawn and garden 35% Powersports ( motorcycle, ATV)

Lawn and garden 100% manufactured in plant with reasonable margins. Very high US market share. Powersports mostly pistons purchased off shore with low margins. Very high US market share.

Used the Delta Model Process to segment the Powersports customers value added requirements.

Found significant opportunities to provide Powersports engine components ( cylinders, heads, etc) using existing technology and

engineering capability.

Created unique value propositions for each customer matching customer value added needed with our unique capabilities.

Developed opportunities equal to 70% of the existing sales in the plant.