ALIGNING ACCOUNTING AND OPERATIONS ON THE LEAN JOURNEY APRIL 26-27 • NEWARK, DE More info at http://www.ame.org/event/aligning-accounting-and-operations-lean-journey-1 AME ATLANTA LEAN SUMMIT MAY 7-10 • ATLANTA, GA REGISTER NOW! More info at http://www.ame.org/atlanta BEST PRACTICES IN A JOB SHOP ENVIRONMENT MAY 16 • PENNSAUKEN, NJ More info at https://www.ame.org/event/best-practices-job-shop-environment NAVAL ACADEMY LEADERSHIP & PCL 101 JUNE 6-7 • ANNAPOLIS, MD More info at http://www.ame.org/event/naval-academy-leadership-event-people-centric-leadership-101 • AME Emerging Leaders • Event Calendar • Upcoming Events • Recognizing Partners in the Region • Upcoming MRCPA Event • Mid-Atlantic LinkedIn • Upcoming Webinars • AME Volunteers • Network.AME.org • Ups, Downs and Success in a Lean High Mix/Low Volume • Ramping Up Employee Engagement – Critical to Your Company’s Success • AME San Diego 2018 • Information • AME Mid Atlantic Region Board of Directors VOLUME 10 / ISSUE 3 / APRIL 2018 DON’T MISS THESE EVENTS Are there rising stars at your organization that should attend AME San Diego? Check out the new AME Emerging Leaders program! The AME Emerging Leaders program is a leadership development program that enables lean practitioners to participate in problem-solving work groups, network with peers, and serve the profession in a leadership capacity. AME invites rising leaders inside the AME member community with fewer than five years of experience working in a leadership or a non- leadership professional role to apply. AME also invites corporate members to recognize and sponsor emerging leaders within their organizations. The participant’s $1,000 sponsorship fee covers full registration to the AME International Conference , a free leadership clinic at the conference sponsored by Living As A Leader , access to AME’s private online learning and networking communities, and more. The deadline to apply is July 1, 2018. To apply and for more details, visit www.ame.org/emergingleaders .
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ALIGNING ACCOUNTING AND OPERATIONS ON THE LEAN JOURNEY APRIL 26-27 • NEWARK, DEMore info at http://www.ame.org/event/aligning-accounting-and-operations-lean-journey-1
AME ATLANTA LEAN SUMMIT MAY 7-10 • ATLANTA, GA REGISTER NOW!More info at http://www.ame.org/atlanta
BEST PRACTICES IN A JOB SHOP ENVIRONMENT MAY 16 • PENNSAUKEN, NJMore info at https://www.ame.org/event/best-practices-job-shop-environment
NAVAL ACADEMY LEADERSHIP & PCL 101 JUNE 6-7 • ANNAPOLIS, MDMore info at http://www.ame.org/event/naval-academy-leadership-event-people-centric-leadership-101
the Region• Upcoming MRCPA Event• Mid-Atlantic LinkedIn• Upcoming Webinars• AME Volunteers• Network.AME.org• Ups, Downs and
Success in a Lean High Mix/Low Volume
• Ramping Up Employee Engagement – Critical to Your Company’s Success
• AME San Diego 2018 • Information• AME Mid Atlantic
Region Board ofDirectors
VOLUME 10 / ISSUE 3 / APRIL 2018
DON’T MISS THESE EVENTS
Are there rising stars at your organization that should attend AME San Diego? Check out the new AME Emerging Leaders program!The AME Emerging Leaders program is a leadership development program that enables lean practitioners to participate in problem-solving work groups, network with peers, and serve the profession in a leadership capacity. AME invites rising leaders inside the AME member community with fewer than five years of experience working in a leadership or a non-leadership professional role to apply. AME also invites corporate members to recognize and sponsor emerging leaders within their organizations. The participant’s $1,000 sponsorship fee covers full registration to the AME International Conference, a free leadership clinic at the conference sponsored by Living As A Leader, access to AME’s private online learning and networking communities, and more. The deadline to apply is July 1, 2018. To apply and for more details, visit www.ame.org/emergingleaders.
UPCOMING EVENTSALIGNING ACCOUNTING AND OPERATIONS ON THE LEAN JOURNEYApril 26-27 Ɩ Newark, DE
The operational strategy most effective in achieving world-class performance is lean. Unfortunately, accounting can be an obstacle to the lean journey as traditional performance metrics are not aligned with nor promote lean behavior. Operations professionals achieve great gains on the production floor but are surprised when there is little evidence of improved operating results.Manufacturing must understand why improving flow, reducing inventory, improving customer service and creating capacity will potentially lower earnings. Manufacturing must be able to explain this, in advance, so accounting is not surprised when quarterly results are prepared. Accounting and manufacturing must work together to develop new metrics and "plain English" financial reporting. This class will illustrate the changes required based on 30 years of leading such changes. Learn how to make a complete lean transformation in this two-day workshop—both on and off the shop floor.
HOST COMPANYSiemens-Healthineers is a leader in laboratory diagnostics, medical imaging, clinical IT and medical infrastructure. With more than 45,000 employees in 73 countries worldwide, Siemens Healthineers is the biggest supplier of healthcare infrastructure in the world, with more than 209,000 patients every hour benefiting from care based on Siemens technology and equipment. The company aspires to become the trusted partner of healthcare providers worldwide to help drive their clinical excellence, operational efficiency and profitability. siemens.com
PRESENTERJerry Solomon has more than 35 years of experience working in a variety of industries where he has held the positions CFO and vice president of operations. He led lean transformations achieving dramatic improvements in inventory turns, lead-times, customer service, income and cash flow. Solomon is also a founding thought leader and subject matter expert in lean accounting and has been teaching lean accounting for the last decade. He has authored three lean books: "Who's Counting?" and "Accounting for World Class Operations" and "Leading Lean." "Who's Counting?" and "Accounting for World Class Operations" are both recipients of the Shingo Prize.
WHY ATTEND?• Understand why shop floor improvements will likely be invisible to accounting• Understand why current metrics will not illustrate lean improvements• Learn about what manufacturing practitioners can do to create an alliance with accounting• Understand why your company's cost system likely promotes non-lean behavior• Learn to value inventory in a lean environment• Learn to calculate costs without a standard cost system• Learn to construct "plain English" profit and loss statements that all associates can truly understand• See how lean tools eliminate waste and transactions in accounting and free up accountants to be
strategists and consultants to the value streams
MORE INFO & REGISTER HERE: http://www.ame.org/event/aligning-accounting-and-operations-lean-journey-1
UPCOMING EVENTBEST PRACTICES IN A JOB SHOP ENVIRONMENT May 16 Ɩ Pennsauken, NJ
Tour Disc Makers, the world’s largest CD, DVD and Blu-ray manufacturer for independent musicians, filmmakers and businesses. See how this custom order job shop has successfully applied flow concepts to the pre-production process and sequential pull systems throughout production. This is no easy task when parallel flows are involved; job routings, quantities and work content can vary greatly from order to order. On this tour you will see examples of visual management in both production and non-production environments.
During its presentation, Disc Makers will review its eight-year lean journey, successes, stumbles and key learnings. A Q&A session will follow the presentation, giving you the opportunity to deep dive into whatever subject is of interest to you. This is a can't-miss event for anyone working in a high mix low volume job shop environment!
HOST COMPANYIn business since 1946, Disc Makers is the nation’s leading independent CD & DVD manufacturer, offering a wide variety of products and services, including state-of-the-art automated printers and duplication systems, complete CD & DVD duplication, CD & DVD replication, and custom disc packaging for independent musicians, filmmakers and businesses. The company’s state-of-the-art facilities are outfitted with the latest
graphic, printing and CD & DVD replication equipment and products, as well as in-house studios for mastering and post production, DVD and CD-ROM multimedia authoring, and award-winning graphic design. Disc Makers began its lean journey eight years ago. The company manufactures and distributes a large selection of disc duplication and printing systems, as well as a full line of recordable media and disc packaging supplies. The company also offers a variety of additional services including download cards, posters, and music distribution. Disc Makers’ main office and plant is located near Philadelphia in Pennsauken, NJ; the company also has regional offices in Los Angeles, New York City, Chicago, Seattle and Nashville. discmakers.com
BENEFITS OF ATTENDING• Learn how lean concepts can be adapted and applied to a custom, job shop environment.• Learn how lean concepts can be applied to production and non-production environments.• Discover key learnings from an organization that is eight years into its lean journey.
WHO SHOULD ATTEND?• Anyone in a high mix low volume production environment• Anyone in a design-to-order business• Anyone in production or non-production roles
MORE INFO & REGISTER HERE: https://www.ame.org/event/best-practices-job-shop-environment
Join us for a two-day special event featuring AME’s people-centric leadership 101 course and the popular Naval Academy leadership event. Developing a passionate, engaged workforce is the recipe for a thriving, successful business. If you’re interested in improving leadership behaviors and increasing engagement, this AME PCL 101 Course is for you. This course was designed by AME to provide organizations with a comprehensive overview of people-centric leadership and the behaviors required to build a culture where every day, everyone is fulfilled by pursuing excellence and everybody flourishes. On day two, tour the United States Naval Academy (USNA) in Annapolis and then learn from their experts how the Navy builds leaders. USNA experts will outline the academic experiences and education each Midshipman receives throughout their 47-month curriculum, from basic follower-ship to ethics and taking the lead of a small unit, and put the curriculum into a perspective that can be applied in any organization.
HOST COMPANYThe United States Naval Academy (USNA) is the undergraduate college of our country’s naval service. USNA prepares young men and women to become professional officers of competence, character and compassion in the U.S. Navy and Marine Corps. USNA develops ethical decision-makers by looking carefully at where the youth of today develop their ethical frameworks and then how USNA can shape them into officers of high character who can be trusted to do the nation's bidding in war and to do so above reproach. The USNA then takes the classroom theories and techniques of leadership and ethics and puts them to work in actual experiences. usna.edu
WHO SHOULD ATTEND?• Passionate and willing leaders who understand the importance of "respect for people" to the long term
success of any organization.• Anyone in a leadership role – from supervisor to the CEO.• Leaders who recognize un-resolved conflict in their organizations and need a method for addressing it.• Leaders who want to increase engagement in their teams and organization overall.
WHY ATTEND?• The value and benefits of building a people-centric culture• The link between building a people-centric culture and lean/CI tools• Vision, goal setting, feedback and alignment in a people-centric culture• Key leadership behaviors necessary to build a people-centric culture, including: Honest and persistent
self-reflection, reflective listening and effective communication, building relationships, supporting the growth and development of people, and celebration and recognition
• Leadership approach used by the U.S. Naval Academy to build leadership capability in the U.S. Navy
MORE INFO & REGISTER HERE: http://www.ame.org/event/naval-academy-leadership-event-people-centric-leadership-101
The Mid-Atlantic region has been reaching out to various organizations in the region to leverage opportunities to better fulfill its mission of “Share-Learn-Grow”. We would like to express our appreciation to the following organizations who have agreed to publish AME regional events on their websites and/or in their various e-mailings to their network members. The success of any regional event relies not just with the host company, but with a strong showing of attendees who are willing to share their experiences and to continue the networking beyond an event.
So thanks to: Alliance for Manufacturing &Technology (Binghamton NY) – www.amt-mep.orgMaryland World Class Consortia – www.mwcmc.orgInnovative Manufacturers Center (IMC) Central PA – www.imcpa.comDelaware Valley Industrial Resource Center (DVIRC) – www.dvirc.orgManufacturers Resource Center (Lehigh Valley PA) – www.mrcpa.orgDelaware MEP – www.demep.orgMANTEC (S. Central PA) – www.mantec.orgNE PA Industrial Resource Center (NEPIRC) – www.nepirc.comGreater Reading Chamber (Reading, PA) – www.greaterreadingchamber.orgMaryland MEP – www.mdmep.org
It is our great hope that we will be recognizing many more organizations in the future.
RECOGNIZING PARTNERS IN THE REGION
Join us on the AME Mid-Atlantic LinkedIn groupWe are pleased to announce the creation of a group specifically for members and non members in the region to 'share-learn-grow'. We encourage you to reach out to others via this group to pose questions, share best practices, and network. Participation is key to a vibrant group. Hope to hear from you soon!! Go here to join: https://www.linkedin.com/grp/home?gid=8352655
ROOT CAUSE ANALYSIS FOR MAINTENANCEMay 8-9
This course will be hosted at Bosch Rexroth and will provide hands‐on skills and strategies while teaching the fundamental tools of Root Cause Analysis
FOR MORE INFORMATION & TO REGISTER: https://www.mrcpa.org/events/root-cause-analysis-for-maintenance/
STANDARD WORK FOR LEAN LEADERSApril 12 | 1:00 p.m. - 2:00 p.m. EDTThis webinar is about how to become more effective at developing the leadership behaviors needed to complement the tools most people focus on when embarking on a lean journey in their business. A main emphasis will be on “teaching others to see” (e.g., identifying and removing waste, developing basic problem-solving capability in associates, and using visual management skills), a key role of leaders in a lean/continuous improvement environment. We will learn about practical implementation of going to gemba (“the place where things happen”) and how to coach others to develop "eyes for waste" as well as the importance of observing the seven types of flow.MORE INFO & TO REGISTER: http://www.ame.org/event/webinar-standard-work-lean-leaders
MISTAKE-PROOFING: CREATING A CULTURE OF ZERO DEFECTSApril 19 | 1:00 p.m. - 2:00 p.m. EDTMistake-proofing is one of the most powerful lean concepts, yet after many years in the public eye it is still one of the least practiced. Broad implementation of mistake-proofing devices can reduce defects caused by human errors absolutely to zero! While the technical side of mistake-proofing is important to effective implementation, creating an environment that identifies and highlights mistakes as “gold nuggets” for improvement rather than individual shortcomings is essential. Organizations that can create this environment, enable a culture of quality, not just a quality system. After offering a short explanation of mistake-proofing as a lean technique, Mr. Hamilton will address key social and policy changes that must occur to unlock the full benefits of mistake-proofing. This webinar will review overcoming "gotcha" behaviors and how to integrate mistake-proofing into your ideas program.MORE INFO & TO REGISTER: http://www.ame.org/event/webinar-mistake-proofing-creating-culture-zero-defects
DELIVERING BREAKTHROUGH IMPROVEMENTS THROUGH ZERO LOSS THINKING April 26 | 1:00 p.m. - 2:00 p.m. EDTMany manufacturers rely on outdated approaches to establishing and achieving performance targets — and never reach their true potential. Most performance improvement initiatives are too focused on current problems rather than long-term objectives that drive sustainable success, performance improvement goals are too limited and budget-based, and performance improvement teams are too fixated on a single, large-scale issue. Instead of being overwhelmed by the total, consider a method that examines all company processes and identifies and prioritizes them as opportunities that generate the greatest gains and lead to breakthrough performance improvements — zero loss thinking. When a company starts identifying activities that contribute to losses, they can identify and guide improvement efforts. In this webinar, we’ll discuss a new way of thinking that highlights total losses and challenges what’s possible.MORE INFO & TO REGISTER: http://www.ame.org/event/webinar-delivering-breakthrough-improvements-through-zero-loss-thinking
Thanks to the relentless support and dedication of our volunteers, AME has helped lean practitioners across the globe progress on their journey toward enterprise excellence. In volunteering, our members grow their networks, share their passion for lean and give back to their communities. Watch this short video to find out why our members love volunteering with AME, and visit our volunteer webpage to learn how you can help others pursue excellence today.
Ups, Downs and Success in a Lean High Mix/Low Volume EnvironmentSignificant reductions in product development and production lead times are among the benefits of adopting lean production concepts in a high-mix/low volume environment, according to Jerry Pfister, vice president of manufacturing at Lochinvar, LLC, in Lebanon, TN, a wholly-owned subsidiary of A.O. Smith Corporation. “It hasn’t been a straight line. We’ve had our ups and downs,” Pfister said about the company’s lean transition starting in 1999. Lochinvar is the market leader in the high-efficiency condensing boiler market and a leading manufacturer of commercial water heaters.
Pfister recounted several contributors to Lochinvar’s lean progress, which has helped to slash product development lead time from five-six weeks to three weeks, and to decrease production time from 15 days to an average two days:
*Employee engagement and accountability for continuous improvement (CI). “We focus on what people can implement in their own area versus turning in ideas for others to implement,” Pfister said. “Accountability boards” at each assembly line or work area (tracking safety, quality, delivery and productivity) have helped to drive CI understanding and involvement, taking non-value-added steps out of the value stream. Pfister added that employees participating in recent AME annual conferences came back with a better understanding of pitfalls to avoid and what improvement techniques work well.
*“We were able to build a new facility designed with lean in mind, in 2001,” Pfister said. “We set up a very flexible fabrication process: pre-painted sheet metal nested by material type on turret punch presses, to a CNC-controlled brake press in which one operator completes all the bends and places the metal in a rack to be delivered to the assembly line.” Horizontal machining centers for gray iron casting enable one-step machining of heat exchangers.
*“We went from traditional line balancing to self-balancing lines,” said Pfister. “When an operator finishes one task, he or she moves up to the next operation. Visual management, including parts presentation and placement of tools, is something we’re constantly learning.” Lochinvar uses three methodologies for presenting parts to the line: two-bin Kanban triggers, vendor-managed inventory on some components and a “pull script” for certain parts (parts pulled and brought to the line as they are needed).
These lean improvements support Lochinvar’s product line expansion. “We’ve introduced 27 major new products over the past ten years,” Pfister continued. “We now run multiple families. We have about 140 base heating models and over 2000 model variations in a calendar year.”
Using a TWI (Training Within Industry) concept for training, Lochinvar creates shared understanding about standardized work sequences (not only focusing on “what” but on “how” and “why”). “We’re getting out of firefighting,” Pfister said. “Instead, we’re focusing on sustaining a lean culture, constantly tweaking it.”
Pfister’s suggestions for others getting started with lean in a high mix/low volume environment: Start with 6S –getting people to see waste. Focus on improvements in safety, quality, delivery and efficiency. A CI program can become bureaucratic if it is not resourced well; nurture engagement and implemented ideas.
Editor’s note: For information about AME regional events focused on people-centric leadership and workforce issues, employee engagement, lean implementation and other topics, check ame.org. Watch for details about tours, presentations, workshops and special interest sessions planned for the AME 2018 annual conference at ame.org/sandiego. An August 9 “Lean in a High Mix Low Volume Environment” event will be hosted by Lochinvar in Lebanon, TN.
Lea Tonkin, a contributing writer for AME regional newsletters, is the president of Lea Tonkin Communications, Woodstock, IL.
Ramping Up Employee Engagement – Critical to Your Company’s SuccessAre your employees proud to work in your company, and willing to go the extra mile for its success? Frequent communications help to create involvement and caring connections, according to Mark Buliszak, a process engineer at A.W. Chesterton Company, Groveland, MA. He recently facilitated an AME event in Lawrence, MA, “Dine & Learn: Unlock the Potential of Your People through Employee Engagement.”
“Setting the stage for engagement needs to come from the top of the organization,” said Buliszak. “A manager’s job is not necessarily to create motivation, but to sustain it. Otherwise, as time goes on, lean and improvement initiatives can start to dwindle.”
Among the basics suggested by Buliszak: Check in daily with teams, following up with them about their standard work progress and any issues. “You need to show reports and co-workers that you care, not just sit at a mahogany desk,” he said. “Get more personal – ask about their weekend, etc.”
Employees want to know that they’re making a difference. “Ask people about their suggestions for improving productivity,” Buliszak counseled. “Their ideas are important; they’re on the floor every day. Don’t just tell them to eliminate mistakes or change their process. Rely on people for their ideas, and you get better buy-in.”
Share information about how employees’ efforts contribute to the company’s success. “When you let employees know how the business is going, you might discuss how on-time delivery and quality help customers achieve theirbusiness goals,” said Buliszak. “Timely, specific and frequent recognition is an important part of engagement. A verbal ‘thanks,’ a handwritten note or bringing in snacks to share – breaking bread together – can help to show your appreciation for their efforts, and to let them know they are making a difference, as part of the chain of getting the customer what they want and need.” He added, “People at work become a second family – you care about people’s lives and their work.”
Engagement levels can make a crucial difference in your organization’s overall performance. The Gallup 2017 State of the American Workplace employee engagement survey report indicated that only 33 percent of U.S. employees are engaged, a 3 percent increase from 2012. The Gallup report noted that the annual cost of disengaged employees is approximately $450-$550 billion annually. Effective communications strategies shine in companies within the top quartile of engagement; they achieve higher productivity, sales and profitability than companies lower in the engagement ranks. An increasing number of companies use mobile technology to communicate with workers, the report noted. See http://www.theemployeeapp.com/gallup-2017-employee-engagement-report-results-nothing-changed/
Editor’s note: For information about AME regional events focused on people-centric leadership and workforce issues, employee engagement, lean implementation and other topics, check ame.org. Watch for details about tours, presentations, workshops and special interest sessions planned for the AME 2018 annual conference at ame.org/sandiego.
Lea Tonkin, a contributing writer for AME regional newsletters, is the president of Lea Tonkin Communications, Woodstock, IL.
Become a Corporate Member of AMEThe Association for Manufacturing Excellence (AME) is the leading industry-diverse community of more than 4,000 professionals dedicated to enterprise excellence. Join today to explore the latest continuous improvement methods and best practices that will help you move your career, your company and your industry forward. For more information on pricing for Corporate membership visit the Corporate Membership Program page.
AME Target Magazine and Target OnlineTarget magazine is AME’s quarterly publication designed for senior and experienced manufacturing professionals who are continuously reinventing products and services to meet tough competitive challenges. Target Online is AME’s weekly source of industry news. Delivered each Friday via email, it is the premiere source for original content and industry news focused on manufacturing, lean and continuous improvement.
AME’s Manufacturing Job BoardAME’s Manufacturing Job Board showcases job openings in manufacturing and highlights talented candidates who are exclusively interested in manufacturing / technology. The AME Manufacturing Job Board has benefits for job seekers and employers alike.
Your Lean Journey Starts HereIf you are currently pursuing or considering Lean Bronze Certification, attendance at a one hour AME regional event tour and presentation counts towards the AME/Shingo Institute/SME Lean Bronze Certification. That’s right, one hour credit per tour and presentation. it’s also one hour credit for each AME classroom event or webinar.
