Product FAMILY MATRIX

By Campbell CorporationArmory Design Phase Out brief

Daniel Defense

Project Charter1. Reason for Event: What is the scope of this event? To create flow in the Amory and reduce Lead time of product to the customer. What are the boundaries of the process (start and end points of the process that will be changed) The boundaries of this event is flow of material from inventory to shipping 2. Current StateWhat is creating the problem? Current cell layout and management of inventory does not support Lean principles. All forms of waste currently exist in the Value Stream. Excess inventory is causing rework and production issues prohibiting the flow of material. Thus increasing cost to Daniel Defense. Who / what is affected by the problem? One time delivery of product to the customer What evidence do you have that there is a problem? Turnback Data, Business METRICS, Observation and time studies.3. Future Ideal State (problem eliminated)What is the result if the problem is completely resolved? The Armory will have a flexible work cell and line that can meet different customer demand requirements with no waste. Material will have a plan for every part and inventory levels will be minimalized. Who / what will benefit from the solution? Daniel Defense as a whole. What evidence will you have that there is a solution? Meeting customer demand and being above target METRICS for quality, delivery, customer satisfaction and increased operating income. 4. Event Sponsor RequirementsWhat do Sponsor / Champion expect from this event? To design the Armory to flow product with a balanced line of production as well as control inventory with a focus on material presentation and handling along with line delivery. What specific completion tasks are required? Time observation studies, process at a glance, load leveling the operation processes, spaghetti chart and part quantity analysis.What goals / objectives need to be achieved? To create an area where flow can be implemented in order to meet customer demand.5. MeasuresHow are you going to measure changes in the process / problem? Reduction in Lead times, process times, defects as well as scrap and rework. Increased inventory turn and operating income. How are you going to quantify success? Impact on all leading METRICSMetric with a trend chart, Goal: Inventory turn, operating income, NCM, scrap, OTD, turnback data. 6. Event LogisticsWhat special expertise needs to be invited? Quality, Finance, Operations, Material's, EH&S, IT, Compliance, etc. All functional groups that are involvedWhere will the event be held? Ridgeland, SC .Will there be any expenses that need to be pre-approved? No Do you need export authorizations for any technical data or foreign national participants? No.7. Event TimelineWhen do the event outputs need to be fully implemented? End of specified implementation phase.Is there a pilot program / project targeted for new process? This program will be the pilot program for the site of Ridgeland.. 8. Event Team InformationEvent Sponsor: Roger MustianEvent Leader: Chance Lord Event Co-Leader(s): Campbell CorporationEvent Implementation Leader: Daniel Defense Team Full-Time Event Participants: Daniel Defense Team

Identifying Waste in the Current State1 Transportation2 Inventory3 Motion4 Waiting5 Overproduction6 Overprocessing7 DefectsArmory Current state

Current Lead Time2.81 Days

Current Process Time43.7 Mins

Lean Guidelines in the Future State1 Takt time2 Finished goods strategy 3 Continuous flow 4 FIFO flow 5 Pull System 6 Schedule only one point 7 Interval8 - PitchARMory Future state Future Lead Time2hrs

Future Process Time.25 Days

Takt Time2.25 Min

Application of lean elementsTo move from the current state to the future state, we will apply the Lean Guidelines using a structured approach to eliminate waste. Lean Guidelines1 Takt time2 Finished goods strategy 3 Continuous flow (apply this 1st) 4 FIFO flow (FIFO when you can)5 Pull System (Pull when you cant FIFO)6 Schedule only one point (right after a supermarket)7 Interval (smaller interval in smaller batches is best)8 Pitch (provides a management timeframe)Identifying & Eliminating Waste1 Transportation (found in current state)2 Inventory (found in current state)3 Motion (found in current state) 4 Waiting (found in current state)5 Overproduction (found in current state)6 Overprocessing (found in current state)7 Defects (found in current state)8 SkillsFor the CustomerTo create FlowMonitoring system

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KAIZEN BURST Impact Matrix

Upper / Lower

Material Presentation

FIFO

Super Market Use to prioritize burst prior to developing the implementation plan.

LowHighHighLowDegree of DifficultyImpact to Customer

12Line Delivery

Laser/ DP

QA/ Test

8. Packing 3874*Kaizen Burst prioritized by impact to customer and correspond with project implementation schedule in order of design. (see kaizen newspaper)

Phases of Cell DesignPQ AnalysisProcess matrix

DefineMeasureAnalyzeImproveControl

Spaghetti

Process at a Glance

Time ObservationsTakt timeOperations Bar ChartOperator % Loading ChartCapacity AnalysisEliminate Waste

Part Family Definition

BalanceOptimize OperatorsChoose ConceptDesign & Simulate

Product/Process Family MATRIXOperations AREA OF FOCUSArmory LASERDRILL & PINUpper Lower QA- Test PACKArmoryDDM4 RifleXXXXXXDDM4 PistolXXXXXXDDM4 ISRXXXXXXAmbushXXXXXXDD5XXXXXXAccessoriesAccessoriesXXXXRetailXXXX

*Product Family defined by similar processes and work content.

PQ-Analysis

*PQ Analysis identifies high runner

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Armory/Swim Lane Process Map

ArmoryMaterials Quality Ship / Rec LaserDrill & Pin Honing Upper Packing Lower QA / Test Incoming/Insp Ship Units Parts pulling

Physical movement (Unit/paperwork)

Internal process

Incoming*Swim lane allows us to identify functional groups relationship to the value Stream.

Suppliers Inputs QuantifiedmeasureProcessOutputsQuantifiedmeasureCustomer Defined EscapesCustomersImpact (1-5)InventoryRouterLaserEngraved part-Cycle time per std hrsAssemblyOn or before operation start date-Innacurate or missing informationArmoryReceivingPartsRouter-Complete and correctRetail Wholesale InventoryRouterDrill and PinAssembled Parts-Cycle time per std hrsArmoryOn or before operation start date -Innacurate or missing informationRetailReceivingParts-Dimensionally CorrectRouterWholesale-Complete and correct MSC/MGAPartsUpper AssemblyInspected unit-Cycle Time per std hrsRetailRetailRouter-On or before operation start date -FunctionalWholesaleWholesaleInspection data package-AccurateLaser-Dimensionally correctRouter-Complete & correct per router-Built to purchase order specsTestingDrill and PinCompleted paperwork -MSC/MGA-Parts-On or before operation start dateLower AssemblyAssembled unit-Cycle Time per std hrs-FunctionalTesting-Retail-RouterRouter-Complete & correct per router-Built to purchase order specs-Wholesale-Dimensionally correctCompleted paperwork-Serial #'s match routerToolsUpper Assembly-Assembled unit(s)Functional TestTested unit-Cycle Time per std hrsLower Assembly-Ammunition-On or before operation start dateRouter-Complete-FunctionalPack-Router-Dimensionally correctCompleted paperwork -Built to purchase order specs-Free of cosmetic defectsTesting-Tested unit-Labels printed correct and accuratePack Package unit-Cycle Time per std hrs-Built to purchase order specs-Printed labels-On or before operation start dateRouter-Accurate serial number tracking-Boxes & rifle casesCompleted paperwork-On time delivery-Magazine and literature-Rifle cases free of defectsQuality unitOn-time delivery-Functional, defect free unitFinal Customer

SIPOC

TAKT TimePurpose: To identify the maximum time allowed to produce a part that meets customer demand.Only two factors are used to figure takt time:Time available & Customer requirementsRemember your ABCs!Available Time 450 minutes / dayBarCustomer Demand 200 rifles / dayTakt time is the rhythm of the just-in-time production system, which is set by the average customer demand.Takt Time 450 mins (A 300) (B 200) (C 100)=A= 1.5 mins B= 2.25 mins C= 4.5 mins

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Line Balancing... after removing obvious waste2KaizenKaizenKaizenInitial situationafter further improvement after redistributing of work content134

EM 4EM 3EM 2EM 1121sec.EM 5

EM 4EM 3EM 2EM 1121sec.EM 5

121sec.EM 5EM 4EM 3EM 2EM 1

121sec.EM 5EM 4EM 3EM 2EM 1Remember to balance to Planned Cycle Time (typically 90% of Takt)

Here is an example of line balancing. It is a fairly simple process moving left to right. Try to fill an operators time by bringing over increments of work to another operator.

When doing this exercise, you may want to consider Planned Cycle Time (PCT). Typically PCT is estimated to by 90 to 95% of takt time. This will account for operational flaws in the system.

We want to balance from left to right and work to create work up to takt or Planned Cycle Time (PCT). Why do we do that? We want to work to get all operators to full load. By leaving the extra time at the end, we will work to remove waste in the process to eliminate the need for this additional person. In addition, by keeping the last operator with the lowest processing time, it will take the leadtime out of the process at delivery to the customer.

It is important that the operator at the end who is not fully loaded is working to improve the process. Even though we are working to eliminate the need for that additional operator, it is important that we do layout the operator. We should have a plan at the outset on where this person will go to grow the business.

MAKE SURE IT IS CLEAR THIS IS A PERCENT LOAD CHART. MODIFY CHART.

Armory Current State *In current state line is imbalance and bottlenecks exist (processes that exceed TAKT

TAKT CAPABILITY Capability A Capability B Capability C*Initial Line balancing with TAKT Capability will all Armory to be flexible with customer demand

New Cell Layout

Legend:_ _ _ Fence___ Material Flow ........ Boundary

Workstation Design

*Work Stations meet Lean standards have built in POU tooling ergonomically sound and are moveable to support TAKT scenarios.

Material Carts

*Material carts are designed to protect parts and deliver only whats needed to meet TAKT following the 5R principal.

FIFO Racks

*When we cannot utilize one piece flow we will use the FIFO principle to control our inventory

Material Trays

*Trays are stackable and made of a rigid plastic, durable and will protect materials and assist in lower site scrap %Tray insert design

UPPER Lower

Gravity Racks

VISUAL STANDARD

ATTRIBUTES OF VISUALPOU (Point of Use) Tool LocationTool AccountabilityFOD PreventionClear Color Contrast Between Top and Bottom. (See slide plastic engineering)

Tool Shadow Boarding

Creating tool shadow boards

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http://plasticeng.com/

BLUE Work in Process, Temporary Cart Parking (WIP)YELLOW Main Aisles, General Areas, Cart Parking Areas YELLOW / BLACK Machine GuardingRED Scrap ( not suspect) RED / WHITE Fire Protection, Electrical boxesGREEN Good Parts, Finished GoodsORANGE Moving Crane Parts, Compressed Gas RacksVisual Factory Guidelines

25Floor MarkingAttributes of VisualSolid Lines or Corners for Floor Markings

EH&S, Non/Hazardous Waste, Non-conforming material

Incoming/Outgoing Product (Raw or Finished Goods)

WIP in Work Cell

Main Aisle Borders4 width2 width2 width2 width

2 widthCart Parking Location

Standard CornersFloor Tape Specification: High-Strength, Double-Coated Tape, Removable Pressure Sensitive Rubber-Based Adhesive. Source: WWW.Mightyline Store.com

ITAR/PPE

Attributes of VisualWarnings/Controls Before Cell EntrancePPE for Machine/Equipment/Fixture Operation

Standardize & Sustain** 5S board to be located in the Cell.**

Upper ASSY

2

Armory Cell

TPM Machine MonitoringAttributes of VisualEquipment/Machine/Process StatusMarked TPM GagesHighlight AbnormalitiesControl Plan for Out of Normal TPM Gauge Conditions

Heat Strips

Air Flow RibbonsEasy-to-Inspect FiltersGauge Highlighting:Red - failure modeYellow warning/execute control planGreen - normal

TPM TrackingAttributes of VisualCritical Machines/Status IdentifiedMaintenance Plan ScheduledUnplanned Downtime TrackedRRCA Activities

Machine Downtime Jan 2015

TPM/Operator Walk AroundAttributes of VisualScheduled Walk Arounds/Safety ChecksOperator Checklists/Signoffs with Results Documented

Note: TPM documentation, tracking, signoff required for all class A/B machines

Operator Signoff Required

Visual Indicators/Activity Schedule: Daily --- Green Circle Weekly Yellow Diamond Monthly Blue Square

TPM/Operator Walk AroundAttributes of VisualVisual Indicators Displayed on Equipment and Checklists

Clear, Visual Operator Checklist Posted at Point of Use

Gemba Walks Reflection MeetingsAndon ResponseAccountability ProcessMentoring

METRICS & PITCH BOARDS Leadership Standard Work

Cell Level Metric Board/ManufacturingAttributes of VisualCommon Metrics, Format/ContentCentrally LocatedPDM ActivitiesOptional Category Right SideHighlight OpportunitiesStop Light Status:Red behind plan, not recoverableYellow behind plan, recoverableGreen on plan

Continuous Improvement Communication

Documents Easily Replaced, Clear and Legible

ARMORY

ARMORY Pitch Board 4

LateAhead

Pitch- is a physical and visual way letting us know if we are on time to our customers Opportunity/ IssueCode W/O Commentsmissing part PXXXXXX broken tool T XXXXXX

*Std work: If a pitch is missed update turnback on board. If more than one pitch is missed per shift notify supervisorPITCH BOARDS

36 Example-Lean Management Structure

President / General Manager

Facilities Manager CI Manager

Contracts Manager

Quality Manager

Operations Manager

Finance Manager

EH&S

HR Manager

Engineering Manager

Supply Chain ManagerDaniel Defense Operating System Transformation Team

Production Cell Supervisors

MFARCAValue StreamTPMSponsor

PractitionersLean TalentInternal Consultant6S

37Implementation Schedule

APRIL/ MAY MAYJUNEJULYPilot ProjectTraining & EducationPilot CellDry RunsMonitor & ImplementationPhase2016

Implementation Schedule Establish a communication plan for all team members with target datesGet buy in from management and employeesDevelop a Kaizen Newspaper to identify action itemsCreate a Project Plan to track, update, and brief both salaried and hourly employees for any changesDevelop a timeline to track project completions

Armory 38Kaizen NewspaperNo.ActionOwnerDue Date% Complete1Create Pitch board2Create Metric board3POU tooling design (plastic eng) 4Build tooling trays 5ANDON System Review6Order Work Stations 789

1

Material Presentation 39Kaizen NewspaperNo.ActionOwnerDue Date% Complete1Tray layout with employees2Design Trays3Order Light Box4Designate Owner / EH&S Evaluation5Define Kit high Runners6System for Auto issue7Cost / Auto Issue usage8Costing for Light box / Vendor for Trays and cut outs9

2

FIFO40Kaizen NewspaperNo.ActionOwnerDue Date% Complete1Build FIFO2Establish FIFO Max3Brief Employee on standard work and FIFO max4Establish FIFO Visual standard56789

3

SuperMArkets 41Kaizen NewspaperNo.ActionOwnerDue Date% Complete1Material Layout and location within cage2Dirll & Pin Run schedule to fill (EPEI)3Create Standard work A, B, C 4Evaluate Kanban options electornic / Man.56789

4

LINE Delivery 42Kaizen NewspaperNo.ActionOwnerDue Date% Complete1Design Material Cart2Fit Trays and stock3Create delivery cadence by pitch4Visual Factory Guidelines5Standard Work for A,B and C Takt6789

5

Process Time43Kaizen NewspaperNo.ActionOwnerDue Date% Complete1Merge Assy upper and lower (final/ QA workstation)2Process Map for Accessories 3Accessories workstation design 4Evaluate fixtures in Armory 56S audit and tracking 6Establish standard work for cell layout A, B, C 7ERP Counsel to review changes required to meet system requirements8Review Router descriptions9Align Router descriptions with system design

6

Materials 44Kaizen NewspaperNo.ActionOwnerDue Date% Complete1Schedule 3P Event (Prep., Production, Process2Create Metrics Board3Establish Standard Work (A,B &C Takt)4Establish parking location for all mat. Carts & FIFOs5Establish std work cadence 6Compliance review789

7

Laser/ D&P 45Kaizen NewspaperNo.ActionOwnerDue Date% Complete1Evaluate changeover times for DP/Laser2Create pitch board 3POU tooling 4Visual for fixture organization 5Storage area for fixtures6TPM Program opportunity 789

8

QA / Final Assembly 46Kaizen NewspaperNo.ActionOwnerDue Date% Complete1Write Std work for rework loop 2Review MRB and scrap process 3TPM program opportunity 4Visuals for Calibration System56789

9

Test 47Kaizen NewspaperNo.ActionOwnerDue Date% Complete1Create standard work for FIFO 2Establish Max 3Establish standard work A,B,C 4Dry Run 5Design and build FIFO 6789

10

Packing 48Kaizen NewspaperNo.ActionOwnerDue Date% Complete1Design Workstations2Establish Max for FIFO3Standard Work for A, B & C Takts 4Write Rework Loop standard work 5Consumable Review6789

11

Shipping 49Kaizen NewspaperNo.ActionOwnerDue Date% Complete1Visual Standard for Shipping2Shipping Label process review3456789

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