Lean Cultural Change – Teams, Technology & Tools

Retraining Gerstenslager in the Global Economy

November 2, 2010

Individuals’ Background• Steven Delmoro – Gerstenslager Company Director Sales,

Engineering & Materials– Technical professional with over 20 years of experience in the field of

automotive BIW stampings & assemblies– Key leader driving cultural change necessary to survive the recent

recession and place company on path to global competitiveness

• Keller McGaffey – Interactive Training Systems (ITS) President– Founder and owner of ITS– Created and implemented training and technical support tools

necessary to permanently transform Gerstenslager’s production Systems

AgendaA. Gerstenslager Company – Background B. Improvement PlanC. Interactive Training System (ITS) – BackgroundD. Needs AssessmentE. Implementation Plan

• Technical Reference System• Work-Team Training• Total Productive Maintenance & Lean• Government Grants and Support

F. Results and Current Status

“Technical workers need to be better trained. They must understand complicated processes and be able to Predict, Prevent, Troubleshoot, and Solve Problems in a high pressure environment”

– The Automotive TechnicalEducation Collaborative

(AMTEC)

“Traditional technical education and training simply don’t provide such workers with the skills they need to succeed—or the skills their employers need to be competitive”

– NGA Center for Best Practices

Gerstenslager CompanyBackground

Gerstenslager Business• Established in 1860 – Transportation business• Location – Wooster, Ohio & Clyde, Ohio• Leading automotive service parts supplier for outer body sheetmetal

panels & assemblies– $100M stamping division of Worthington Industries, headquartered in

Columbus, OH. www.worthingtonindustries.com• Primary Products and Services

– Large Sheetmetal Stampings– Welded Assemblies – Automotive door, hood, fender– Electrodisposition paint process– Warehousing and logistics services

• Current Employment – 584 employees

Why is Gerstenslager Different?

Gerstenslager Other Suppliers

Customer Base 7 Main Customers35 Total Customers

3-6 Main Customers

Primary Product 70% Auto Service Prod20% OE Auto Products10% Non-Automotive

10% Auto Service Prod90% OE Auto Product

Dies & Tools 14,000 200 - 250

Part Numbers/SKU 3500 60 - 80

Ave Prod Lot Quantity ~ 400 ~ 2000

Production Processes Blank, Stamp, Welded Assembly, Ecoat, Pack,

Warehouse, Distribution

Stamp, Welded Assembly

Core Competency Manage Service Life of Automotive Parts

Launch New Vehicle Part Production

Improvement Plan

Gerstenslager Improvement History

Past Programs and Training• Kiazen Teams – Ford • PICOS – GM• Lean Sigma Assessment –

Nissan• Lean Training Programs

– 5 S– SMED – Value Mapping –

Schedule• Team Development

Results • Complexity of business challenged

lean convention• Infrequent running of low volume

product suppressed savings• Flexibility of workforce made

training difficult• Focus lost due to competing

priorities• Poor sustainability of

improvements • Tactical improvements not culture

changing improvements

Strategic Improvement Plan

SAFETYIMPROVEMENT

INITIATIVE

SCRAP &REWORKINITIATIVE

FIXED COSTREDUCTIONINITIATIVE

INVENTORYREDUCTIONINITIATIVE

IMPROVEDEQUIPMENTUTILIZATION

TEAM BUILDING– Technology– Team Build– Lean/TPM

• Key Workstations

Interactive Training Systems• Preferred training supplier to the State of Ohio• Customers include:

– Ford, GM, Chrysler– Detroit Diesel, Caterpillar, Paccar, etc.– Original Equipment Manufacturers (OEMs)– Tier Ones, Twos, Threes– Industries: Stamping, Assembly, Machining, Paint

• Recent recipient of the Ford Presidents Health and Safety Award for two custom eLearning training courses developed for the Ford Lima Engine ECPL Training

Interactive Training Systems• History

– 40 years in the industry– Engineering based– Technical writers and trainers– Real world experience– Machine designers - Mechanical/Controls

Interactive Training Systems• Technical Reference Systems

– Safety - General and Machine specific– Operation, Repair, and Maintenance procedures developed

using Step-By-Step program (StepBuilder)– Troubleshooting procedures developed using FaultBuilder

program– Exploded views with part specifications– Controls information (Hydraulics, Pneumatics, Lubrication,

Coolant, etc.)– Machine operation simulations– Assembly/Disassembly/Set-up/Calibration procedures

Interactive Training Systems– Operation and Maintenance Step-By-Step Samples

Interactive Training Systems– Troubleshooting - FaultBuilder Samples

Interactive Training Systems– Exploded View Samples

Interactive Training Systems– Controls Information Samples

Interactive Training Systems– Simulation Sample

Interactive Training Systems• Technical Reference Objectives:

– Get technical information into workers’ hands quickly and accurately to reduce MTTR and increase MRTBF

– Benefits: Ensure standardized work processes

(ISO 9001:2008 compliant) Team training tool for consistency Continuous improvement

o Procedures can be easily updated as procedures and processes are streamlined

Interactive Training Systems

• Leadership Development– Assess Current Leadership Styles and Relationships– Facilitate the Development of the Organizational

Vision– Develop and Rollout Strategy Deployment

ORGANIZATIONAL DEVELOPMENT

Interactive Training Systems

• Team Development– Develop and Rollout Organizational Design

Document– Develop Team Skills– Develop HPTs (High Performance Teams)

Pilot Area and Replicate– Train Team Skills– Coaching/Mentoring Leaders– Coaching/Mentoring Support Functions– Coaching/Mentoring Team Leaders and Members

ORGANIZATIONAL DEVELOPMENT

• Evaluation of Organizational Change– Develop Performance Management System– Develop Survey Instrument– Develop Measures and Tracking Process

Interactive Training SystemsORGANIZATIONAL DEVELOPMENT

Lean Cultural Change Objectives• To transform Gerstenslager into a world-class

manufacturer• Increase the knowledge level, productivity, and

competitiveness of the workforce and management team at Gerstenslager

• Increase the value, size, and diversification of Gerstenslager’s customer base by improving cost, quality, and scheduling

• Retain the existing workforce and prepare them for new opportunities as the severe recessionary environment rebounds

Needs Assessment Analysis

Initial Needs Analysis

Assessment Results• Gerstenslager Leadership is committed to adopting a

cultural change and support of Team and Lean based initiatives.

• Teams were already put in place, but needed training and support

• 3 prong approach required:– Technical Reference

Systems– Develop High Performance

Work Teams– Lean Manufacturing implementation

Implementation Plan

Implementation – 3 Phase Plan

Phase One – ($250,000 Ohio State Grant)

– Steering Committee formed(Joint Leadership — Union and Management)

– Teams formed (A-Line Pilot Area)2 shifts

– Technical Reference System developed for A-Line– Approximately 50 employees trained

April 2009 June 2009 June 2010 June 2011

Implementation – 3 Phase Plan

Phase Two – ($300,000 Ohio State Grant)

– Steering Committee supporting teams– Teams formed on Y-Line - 2 shifts and Hem 1 Cell– Technical Reference Systems developed

Y-Line Hem 1 Cell

– Approximately 300 employees trained– Adopting “Worthington Lean Academy” Model– Positive results in key metrics

April 2009 June 2009 June 2010 June 2011

Implementation – 3 Phase Plan

Phase Three – ($250,000 Ohio State Grant)

– Steering Committee supporting teams– Expanding Lean Tools and Methods

thru “Worthington Lean Academy” – Expanding Teams and Technical Reference Systems

to Clyde facility– Technical Reference Systems development

Clyde facility press line Paint system

– Estimated 300 employees to be trained

April 2009 June 2009 June 2010 June 2011

Operations Lean Academy

The Operations Lean Academy was developed to help our organization establish sustained business growth to consistently maximize shareholder valueGoal: Establish participant skills and ability to facilitate lean activities that will realize and sustain the impact of continuous improvement activities at their respective facilities. 

Core Learning Modules:•Company Transformation Update•Performance Management Process•Lean 101 Workshop•Presenting With Impact Workshop•6S Workshop•Waste ID Workshop•SMED (Single Minute Exchange of Die) Workshop•Sustaining Change Workshop

Lean-specific workshops include experiencing the workshop as a participant, followed by a train-the-trainer session and individual practice in front of the group. The Lean Academy is conducted in five (5) sessions over a ten-week period. Participants are required to conduct live workshops at their facilities between each Academy session.

Local Operations / Plant Managers partner with the Lean Academy participants to reinforce and sustain improvements.

Phase One Participants

Industry Recognized Certificates

Technical Reference Systems

• Emphasis on standardized work practices• Computer based work instructions at the workstation

providing– Safety documentation– Operational and technical Information– Repair and Troubleshooting support

– Setup Procedures– Role/Team Definitions– ISO/TS Support

• Employees certified in training and demonstration of work procedures and navigation of Technical Reference Systems

• Updated as teams streamline and error proof processes

Technical Reference Systems• Example of Gerstenslager ITRS opening screen:

Technical Reference Systems• Examples of Gerstenslager ITRS screens

Technical Reference Systems• Examples of Gerstenslager ITRS Safety screens

Technical Reference Systems• Examples of Gerstenslager ITRS Maintenance

screens

Results and Current Status

Gerstenslager Results

• Leadership Preparation– Direction and support of Work Teams– Alignment of goals at all levels of organization

• Ongoing coaching of Team Process• Development of Team Skills• Effectiveness Measures

– Communication Skills– Decision-Making – Productivity Metrics

DEVELOPMENT OF EFFECTIVE WORK TEAMS

Gerstenslager Results

• Understanding and responding to operational constraints

• Value Stream mapping• 5S and Visual Management• Daily Walk-Around Audit• Preventive and Predictive Maintenance• Total Productive Maintenance (TPM)• TPM to Lean Manufacturing

TOTAL PRODUCTIVE MAINTENANCE/LEAN MANUFACTURING

Gerstenslager Results• Team Development:

– Increased leadership on floor– Increased communication up and down organization– Expectations of team to take responsibility for safety, quality and

productivity of each workcell

• Set-up time reduction - Data shows positive trend – Press and Assembly operations

• Downtime and Scrap reduction efforts becoming new focus – engagement of team

• Best Practices communicated among shifts and workstations

Automated Pressline Results

Stratified Setup Times

0%20%40%60%80%

100%

Jun Jul Aug Sep

> 5.5

4.5 - 5.5

3.5 - 4.5

2.5 - 3.5

< 2.5

Avg Hrs per Setup

2

3

4

5

6

PY J un J ul Aug Sep

# of Setups

-1020304050

J un J ul Aug Sep

Automated Assembly ResultsAvg Hrs per Setup

2

3

4

5

PY J un J ul Aug Sep

# of Setups

-510152025

J un J ul Aug Sep

Stratified Setup Times

0%20%40%60%80%

100%

Jun Jul Aug Sep

> 5.0

4.0 - 5.0

3.0 - 4..0

2.0 - 3.0

< 2.0

Lean Implementation Results• 150 Employees added since Lean Implementation

424Employees

584Employees

June ‘09 September ‘10

Benefits to Ohio

• Maintain Manufacturing Economy - $1 from manufacturing creates $1.43 of other economic activity – 2X that of services

• High wage sector with supporting benefits• Leading contributor to the state and community tax

base• Position Ohio for modern manufacturing and attract

new business in the future