SUCCESS INDICATORS

JOHN CHANDLER, JR

CEO | COO | General Manager | Multisite, Multifaceted

Company President | Optimizing Performance

5S Training / Process Improvements Increase Production By

200%, Generating Gross Profit of 24.39%

Company operation was not generating run rate required to meet financial objectives.

Efficient product flow was nonexistent. Challenge was to develop a suitable lean

continuous improvement model that met the needs of the customer, business, and

culture.

Put plant leadership through extensive training in 5S and value stream mapping in

support of plant transformation starting with machine shop. Machine shop went from a

large batch and queue process to a one-piece flow, reducing welding lead time from

three hours to 87 minutes.

Production increased to 200%, generating a gross profit of 24.39% and line failures

dropped to under 6% almost overnight.

Newly Restructured Manufacturing and Quality Assurance

Departments Improve Gross Profits By 10.1%+

Recognized opportunity to drive higher gross profit margins by restructuring

manufacturing and quality assurance departments. Batch and queue process was

outdated and teams did not understand the value of new process and were hesitant to

see a change that would require new learning.

Restructured manufacturing and quality assurance departments. Transitioned plant to a

cellular manufacturing process that consisted of implementing lean enterprise

workplace organization and inspection / maintenance systems.

Improved gross profit from 26.7% to 36.8% and increased production from 86 units per

year to 254 units per year in less than three years.

One-Piece Flow Pull System Increases Productivity By 49.6%

Company was paying more than it should have for the proper level of output; i.e.,

producing far more than downstream customer demand required, resulting in inventory

overruns, costly large batch movements, and higher damaged goods.

Developed process for staging transition from batch and queue to one-piece flow pull

system. Implemented steps necessary to convert manufacturing plant without loss of

production. Established use/hr, FTT, and PIA metrics to determine effectiveness and

efficiency of lean manufacturing processes.

Increased productivity 49.6% resulting in a 65.7% increase in unit/hr production.

Achieved FTT scores in excess of 97% from ~85%.

Multidepartmental and Facility Task Force Delivers $4.7+ Million In

Cost Savings

Company was paying more than it should have for the proper level of output; i.e.,

producing far more than downstream customer demand required, resulting in inventory

overruns, costly large batch movements, and higher damaged goods.

Developed process for staging transition from batch and queue to one-piece flow pull

system. Implemented steps necessary to convert manufacturing plant without loss of

production. Established use/hr, FTT, and PIA metrics to determine effectiveness and

efficiency of lean manufacturing processes.

Increased productivity 49.6% resulting in a 65.7% increase in unit/hr production.

Achieved FTT scores in excess of 97% from ~85%.

Operational Processes / Strategies Cut Costs By 47%+, Boost Sales By

11%, and Doubles Profitability

Company had two consecutive years at 5% loss position, a nonsustainable condition.

Firm’s entrenched way of doing things for the past 10 years had left operation stuck in

a rut with little guidance or motivation to change.

Closely assessed improvement areas and rolled out strategies supporting inventory

management, changes to operating procedures, financial controls, and

communications. Defined clear change objectives and worked closely with team

leaders to achieve buy-in from team members.

Turned around operations in one year, lowered operational costs by 47%+, increased

sales by 11%, and doubled profitability.

Lean Manufacturing Process Reduces Task Time By 2.5 Days And Work-

In-Process By 50%

Outdated “batch and queue” process inherently lends itself to excessive waiting,

overproduction, increased inventory/work-in-process (WIP), additional

transport/handling/motion, and damage/defeats.

Transitioned plant from “batch and queue” process to “one-piece flow pull system” and

implemented lean enterprise inspection and maintenance systems with each

department 5S’ed and shadow boarded.

Reduced task time from 5.5 days to 3 days and work-in-process by 50%, while

increasing units per hour from 67 to 111.

Change Management Practices Improve Material Yields By 20% and

Production Yield By 11%

Needed to find a way to reduce inventories while diminishing material shortages.

Warehouses were organized in part-number sequence without regard to location and

usage with excess raw materials and work-in-process (WIP). Traditional inventory

control system created excessive transport, motion, inventory, and work-in-process,

therefore increasing costs unnecessarily.

Produced value stream map to determine present state and identified future state

objectives. Replaced traditional inventory control system with Just-in-Time (JIT) lean

systems.

Improved material yields by 20% and production yield by 11% over standard costs.

Sales Structure and Compensation Plans Boost Part Sales By 50%

Small parts sales costs were excessive at 26% of sales. There was great resistance to

change in both the company and the industry because things had always been done

the same way.

Revamped small parts sales compensation plans to more directly reflect company

goals. Narrowed target niches to those with greatest current success and future

potential. Drove market share increases as a result of more targeted market approach.

Boosted company-part sales by 50% in three years, cutting costs by 14% of sales.

Cross-Functional Task Force Turns Around and Salvages $50 Million in

Sales

Company lost three large customers and two major customers had placed the

company on notice for product, packaging, and service quality issues. Customer order

fulfillment rate was 85%, generating 15% loss in sales on a daily basis. Sales force

morale was low and sales personnel were in customer maintenance mode.

Established cross-functional task force to ensure retail store display requirements and

rotations were followed across operations and that plant production was aligned with

customer demand.

Improved customer order fulfillment rate to 99% in less than 30 days, salvaging $50

million in sales.

Forecasting, Scheduling, & Process Controls Reduce Labor / Overhead

Variance By Under 3%

Labor variances were outside desired limitations and needed to be brought back under

control. There was a clear lack of focus and direction on leadership teams across the

organization, with limited understanding of process controls.

Collaborated with team leads to create and implement forecasting, scheduling and

process controls that allowed more transparency in business operations, including

manpower availability and utilization. Created visual tools for tracking key indicators

and trained personnel on their application.

Achieved outstanding labor and overhead variances of under 3%.

New Warehouse Management and Procurement Procedures Slash Inventory By

53.4%, Material Handling Labor By 58.2%, and Material Touches By 60%

Needed to establish control over increasing inventory assets and reduce amount of

cash tied up in product inventory. Raw material inventory growth was outpacing sales

growth, diminishing margins and restricting cash flow / profitability.

Revised warehouse management and procurement procedures to establish control and

timely reporting over inventory network / POs. Transitioned firm from traditional

warehousing system to a point-of-use methodology.

Slashed inventory by 53.4%, material handling labor by 58.2% and material touches by

60%.