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Maximizing the Value of Oracle Transformation Using Enterprise Lean / Six Sigma (ELSS)

Rajesh Bhageria Matt LouisDeloitte Consulting Deloitte Consulting

Copyright © 2005 Deloitte Development LLC. All rights reserved.

Profile and Relevant Experience

�Certified Enterprise Lean Six Sigma Black Belt with 15+ years of industry and consulting experience at Global Clients in Diversified Manufacturing, Aerospace & Defense, Consumer Product, Life Sciences and Construction segments.

�Certified by APICS in Production & Inventory Management (CPIM) and Supply Chain (CSCP)

� Primary area of emphasis is synchronizing Supply Chain and integrating distributed business models using technology as an enabler

�Oracle implementation experience with Fortune 500 companies in Asia, Europe and USA in areas of Lean Manufacturing (Flow), Operations Management, Sales & Operations Planning and Supply Chain Management

�Authored and presented at various Oracle events:

�Extending the Lean Enterprise

�Demand Driven Supply Chain

�“Realizing Value Quickly - Supply Chain Implementation Best Practices

Key Clients/Employers Served

Rajesh Bhageria

Senior Manager, Enterprise Applications (Supply Chain Transformation)

Diebold

Butler Mfg

Handleman

Michelin

Ingersoll Rand

Tecumseh

Smith Medical

GE Aircraft Engines

Introductions


Profile and Relevant Experience

�Certified Enterprise Lean Six Sigma Master Black Belt with 13 years of industry and consulting experience at Global Clients in Telecommunications, Automotive, Aerospace & Defense, Consumer Product Manufacturing, Life Sciences, and Federal Government segments.

� Functional experience in Merger and Integration Management, Materials Management, Lean Manufacturing, Six Sigma, Operations, Supply Chain, Distribution, and Purchasing.

� Led the creation of Process Excellence organization of a large telecommunications company.

� Led prime work stream of project to understand, control, and prevent sources of margin erosion in distribution channels of a medical device manufacturer using Enterprise Lean and Six Sigma methodologies. Realized $8 million in annual margin erosion savings.

� Led the creation of Deloitte’s quality approach to the Provider segment of Life Sciences.

�Authored and presented “Enterprise Lean Six Sigma in White Collar Environments” to Firm-wide audience.

� Frequently invited to speak at industry events on lean six sigma.

Key Clients/Employers Served

Matt Louis

Manager, Strategy and Operations, Lean Operations

• Johnson & Johnson

• GE

• Procter & Gamble

• Textron

• Sprint Nextel

• US Air Force

Introductions


Who is Deloitte?

• Deloitte is the world’s largest privately held professional services firm

– Nearly 130,000 employees world-wide providing Audit, Tax, Consulting, and Financial Advisory services

– Over 37,000 Consulting professionals globally

– Serving the major manufacturing segments including Automotive,

A&D, Diversified, High-tech, Medical Devices, Process

– Providing a full range of business consulting services in:

• Strategy and operations

(includes supply chain strategy, procurement, sourcing, and lean six sigma)

• Systems integration

(Winner of Oracle Titan award – 2006)

• Human capital,

• M&A


Lean and Six Sigma can be powerful business improvement methods

•Tools to reduce process variation

•Highly analytical and data-driven

•Defined Methodology (DMAIC, DMADV)

•Focused on eliminating waste

•Provides tools and concepts for improving work

•Grounded in principles of value, flow, and pull

Six SigmaLean

“The relentless effort to systematically

reduce waste while improving the flow

of value to the customer”

“The relentless effort to systematically

reduce variation”


Consequences of Tactical Lean

� Fails to provide an architecture that allows tactical improvements toadd up to strategic benefits

�Backsliding to non-Lean, legacy processes often occur since Lean initiatives lack structural support from the enterprise as a whole

�Tendency to address symptoms, not root causes, of waste

However, lean six sigma efforts have traditionally been applied in a tactical manner focused on individual sites or functions

Even multi-plant lean efforts tend to treat each facility as an independententity. As a result, the full potential of Lean often goes unrealized

Typical Application of Lean

Business Enterprise

Plant

Plant

PlantSuppliers CustomersPlant

Tactical Lean Focus


• Deloitte’s employs a transformation approach called Enterprise Lean Six Sigma (ELSS)

LEAN(Simplicity)

SIX SIGMA(Reliability)

ENTERPRISE LEAN SIX SIGMA

Improvement Architecture

Sales &

Marketing

Product

InnovationManufacturing Distribution

Service &

Support

The application of lean across the enterprise allows tactical improvements to “add up” to strategic change

•Provides an improvement “architecture”

•Connects strategy with improvement actions

•Employs powerful lean six sigma tools and techniques

•Applicable to all business processes

•Allows lean principles to extend across the supply chain

•Incorporates information flow and technology

Supply ChainLean

+


ELSS further expands the lean six sigma focus to the entire value chain

The ELSS strategic vision is to generate greater and more sustainable benefits by not sub-optimizing the overall process

Enterprise - Level Focus

Typical Perspective

Value Chain Perspective

Cross-Enterprise Focus

Typical Lean improvement efforts focus on making

local improvements

Enterprise lean attacks waste throughout the entire global value chain

“Local”

“Global”

Sales &

Marketing

Product

InnovationProduction Distribution

Service &

Support


IT

LEAN / Six Sigma

LEAN / Six Sigma

IT

Paths to Frustration

Businesses have traditionally placed lean, six sigma and IT transformation initiatives in tension with each other

Failure to recognize the synergies between these initiatives often leads to suboptimal resource allocation

Which comes first? Impacts

• Misalignment of business strategy

• Dilution of business improvement resources

• Sub-optimal IT and lean solutions

• Unrealized value and synergy


Enterprise

IT

Solutions

An enterprise perspective on lean naturally aligns with enterprise information solutions

• Reduced Complexity

• Optimal Solutions

• Process-IT Alignment

• Greater Value

Enterprise Lean

Six Sigma

•Reduce overproduction (waste) of information

•Focus on critical operations and information

•Simplify processes, configurations, and transactions

•Define lean practices to be codified in an IT solution

•Enable lean to extend beyond the “four walls” to the enterprise

•Provide visibility and synchronization of info across demand-driven supply chains

•Capture and deliver critical operational performance information

•Codify lean business rules and policies in business systems

Integrated Lean-IT Solutions


Traditional,

Fragmented

Value

Stream

Second Tier Supplier Major Subcontractor

Typical Limited Domain of Supply Chain Improvement Projects

Company Boundaries

Second Tier Supplier Major Subcontractor

Company Boundaries Domain of ELSS

Multiple Operations within OEM

Multiple Operations within OEM

Supply Chain Example

For example, enterprise lean with IT allows supply chain optimization to extend across boundaries and borders

IT Infrastructure


Many companies now recognize the value of deploying lean, six sigma and technology in an integrated manner

• Rigorous process improvement through lean and six sigma can dramatically reduce the complexity of IT solutions

• Concurrent consideration of enterprise information requirements helps minimize “local” lean or six sigma initiatives and elevates the discussion to value chain optimization

• Lean thinking can have a significant positive impact on system implementations by adjusting application configurations to reflect and reinforce lean operating behaviors

• Companies that pursue integrated deployments realize greater operational improvements, reduced implementation costs, and more sustainable performance gains

• In short, it provides a better value proposition…faster, with more benefits, and at lower cost


IT serves as a primary enabler for lean enterprise transformation - the systematic deployment of lean methods across the business

• IT complements lean / six sigma by:

– Facilitating a transition from ‘lean manufacturing’ to ‘lean enterprise’by extending lean beyond the “four walls”

– Providing consistent, timely, and accurate information across the enterprise

– Creating visibility, collaboration, and synchronization across demand-driven supply chains

• Lean complements IT by:

– Reducing the overproduction (waste) of information

– Creating focus on critical operational information

– Simplifying application configurations by removing complexity

– Increasing the alignment of IT solutions with actual operating behaviors


Physical

Arrangement

Organizational

Arrangements

Operating

Policies

Information

Infrastructure

Lean

Configuration

of WorkTactical

Implementations

Structural

Elements

Top

Level

Architecture

Information Infrastructure

• Requires work to be viewed from multiple perspectives

• IT solutions must be designed in the context of the lean work configuration

• Information flow is an integral part of a lean configuration of work

• Designs are based on a “lean enterprise” architecture

• Allows tactical actions to “add up” to strategic change

• IT forms the enabling “backbone” for the lean enterprise

Integration of lean, six sigma, and IT requires a new perspective


Lean related activities occurs in multiple phases of the deployment

FastTrackTM for Oracle

Lean Activities

Plan andAnalyze

Design Build Deliver Operate

Project Management

Value

Strategy and Operations

Information Technology

Security and Controls

People

Project Management

Value

Strategy and Operations

Information Technology

Security and Controls

People

PH

ASES

TH

READ

S


Additional design rigor is applied to the most critical processes

In-Scope

Processes

Subprocess

Activity

Level Best Practice

Process Modeling

And Design

Mapped Directly to Oracle

O

Perform Order Management

O-020

Capture Orders

O-030

Process Orders

O-040Calculate Order

Price and Maintain

Customer/Order

Data

O-050

Manage Customer

Credit Exposure

O-060

Manage and

Track Orders

O-070

Manage

Backorders

O-090

Pick Orders

O-100

Pack Orders

O-110

Plan/Manage

Shipping/Delivery

O-120

Ship/Deliver

Orders

O-130

Bill Revenue

O-140

Process Receipts

O-150

Manage

Collections

O-160

Manage Rebates

O-170

Manage

Chargebacks

O-190

Manage Returns

and Exchanges

O-020Capture Orders

Receive Customer

Planning and/or

Shipping Schedule

Determine/Confirm

Customer Order

Requirements

Determine Order Type

Create Standard Order

Create Service

Contract Order

Create Customer

Contract Order

Check/Create

Schedule Line

Agreement

Create Tooling/Support Equipment

Order

Create Prototype

Order

Create No-charge

Order

Create Subsequent

Delivery Free of

Charge (FOC) Order

Create Swap or

Exchange Order

Create Literature

Order

Create Sample Order

Create Stock Transfer

Order

Create Inter-company

Order

Create Cash Sale

Order

Create Third-party

Order

Create Credit/Debit

Memo Request

Process Consignment

Pick-up

Process Consignment

Fill-up

Process Consignment

Issue

S-130

Initiate, Manage

and Close Direct

Sale

S-180

Provide Sales

Support

Receive Customer

Planning and/or

Shipping Schedule

Determine/Confirm

Customer Order

Requirements

Determine Order TypeIs a Third-party

Order?

Is a Consignment

Order?

Credit/Debit

Memo Request?

Create Third-party

Order

Is Consignment

Fill-up

Requested?

Is Consignment

Pick-up

Requested?

Create Credit/Debit

Memo Request

Is Notification of

Issue to End-

customer?

Process Consignment

Fill-up

Process Consignment

Pick-up

Process Consignment

Issue

O-090

Pick Orders

O-030

Process Orders

O-130

Bill Revenue

Yes

No

Yes

No

Yes

No

Yes

No

Yes

No

Yes

Cont'd.

No

~80-90% of

Processes

~10-20% of

Processes

Rigorous value

stream designs

focused on

“critical”

processes

Lean/Six Sigma

Business

Practices / Design

Considerations


Our value stream analysis methods are designed to reveal work complexity and root causes to performance problems

Typical improvement ranges for EL/SS

in a manufacturing environment

Typical improvement ranges for EL/SS

in a white collar environmentCADS

CODS

CODS

CODSCVS

PADR

CODSCADS

CADS

PADRCADS

PADR

TSOMACPAC

CODSCODSCODS

CODS

CADS

CADS

CADS

TSO

Thermo-King

Part: SL200 Blower Housing Control Box assembly (TCI 30: 0705R38197)

Weekl y requi rement: 35 approxHandoff from… Handoff to…

Step Descriptions Node Location Effort (min) Span Time Node Location Comments

1 Weekly runs list received by vendor liaison Production Control Galway, 1 5 Tues. PM Vendor Liaison Galway, 1 Fab Products vendor liaison

(Brendon O'Shaughnessy) receives runs list f rom Kevin G ill on a Fri. for

the next week (Wed. to Tues.)

2 Vendo r Liaison reviews weekly planner and prov ides net

schedule requirements to Fab Products

Vendor Liaison Galway, 1 10 Fab Products Fab

Products, 1

Brendon O. physically count s all A

items produced by Fab Products and

nets inventory items against weekly requirements. This inf ormation is

communicated to Fab Products via

the phone. Fab Products will build to

the schedule. TCI units a re built on evenings.

3 Vendo r Liaison checks daily quan tity available for pa in t

to determine call-o ff for units to Fab Products

Vendor Liaison Galway, 1 5 Paint Queue Galway, 1 Brendon O. does a daily netting of

requirements t o determine the call-off

amount fo r control boxes to Fab Products. Problems could arise if TK

is working a weekend or overtime w/o

notifying the Vendor Liaison

4 Vendo r Liaison makes an EDI call-off to Fab Products Vendor Liaison Galway, 1 5 Fab Products Fab Products, 1

EDI transmissions are done daily at noon. This transmission effects

current day deliver fo r A class items

includ ing TCI box es. Follow-up may

be requ ired via the phone if the EDI

doesn't come through or if the re are specif ic problems at Fab Product s.

Normally two-three days o f TCI

inventory is held at Fab Products

(e.g ., Wed. pm product is delivered to TK on Fr iday pm)

5 Fab Products receives call-of f for TCI boxes and ships

the units to TK via truck

Fab Product s Fab

Products, 1

NC NC Galway Drop Queue Galway, 1 Units shipped to Galway will be

pulled out of stock as discussed

above

6 Fab Products faxes a copy of the shipping document to Galway Stores

Fab Product s Fab Products, 1

NC NC Stores Galway, 1 Galway stores receives fax from Fab Products

7 St ores personnel receives shipping document and

verif ies receipt of mat erial at drop queue

Stores Galway, 1 5 Galway Drop Queue Galway, 1 St ores checks the delivery quantity.

Af ter verifying the correct delivery

amount, the EDI order is processed

as a receipt8 Pa int area charge hand (day shift) goes to outside drop

area to bring in TCI boxes for painting

Paint Booth Galway, 1 5 Galway Drop Queue Galway, 1

9 TCI boxes moved from queue to paint booth queue Galway Drop Q ueue Galway, 1 5 Paint Booth Queue Galway, 1 Charge hand brings cart in with TCI

units deliv ered on previous day. This is normally done prior to second shif t

since black painting is done on

second sh if t

10 Progress Chaser goes to the head of the control box

subassembly line and makes determination of number of units to move from paint to head of subassembly line

Control Box

Subassembly

Galway, 1 5 Paint Booth Galway, 1 Progress chaser makes the rounds of

several locations in the f actory t o determine ma ter ial needs. He then

communicates to the supplying areas

what the build requirements. TCI box

requirements a re communica ted to

the Paint Booth

11 Pa int area charge-hand (n ight shift ) performs a physical validation of box requirements by going to the head of

the subassembly a rea

Paint Booth Galway, 1 5 Control Box Sub-Assembly Queue

Galway, 1 This process invo lv es checking & rechecking rqts. Normally the paint

area likes to keep +10 items more

than are needed in the pipeline

12 Pa int booth charge hand loads TCI boxes ont o pa int f ixtures

Paint Booth Queue Galway, 1 10 Paint Booth Galway, 1 Pa int f ixtu res dictat e what is pain ted

13 Box runs through pre-t reatment, paint, and dry Paint Booth Galway, 1 120 Post Paint Queue Galway, 1 Boxes are queued at the end of the

paint booth

T herm o -K in g

Pa rt: SL 2 00 Blow er Hou sing C ont ro l Box as sembly (TC I 30: 07 05 R381 97)

Weekl y requ i rement: 35 a pp roxHa ndoff from… Hando ff to…

Ste p Des criptions Node Loca tion E ffor t (m in) S pan Time Node Location Comments

1 W ee kly ru ns l ist rece iv ed by v end or l iaison Produ ction Co ntrol Galway, 1 5 T ues. PM V end or Lia is on Galw ay, 1 F ab Prod ucts vendor l iaison

(Brend on O'S haughnessy) rece ives runs list f rom Kev in G i ll on a F r i. f o r

the n ext week (W ed. to T ues .)

2 Ve ndo r L iaison review s we ekly p lanner and prov ides net

sche dule requiremen ts to Fab Produc ts

Ven dor L ia ison Galway, 1 10 Fa b Produc ts Fab

Produc ts , 1

Bren don O. phys ica lly co unt s al l A

i te ms pro duce d by F ab Produ cts and

ne ts inv ent ory i tem s ag ainst weekly requ i re ments . Th is inf ormation is

commun ica ted to Fab Produc ts via

the p hon e. F ab Produ cts wi ll bui ld t o

the s che dule . TC I un its are bu i lt on ev en in gs.

3 Ve ndo r L iaison che cks da ily quanti ty a vai lab le f or pa in t

to determ ine ca ll -o ff fo r un its t o F a b Prod ucts

Ven dor L ia ison Galway, 1 5 P aint Queue Galw ay, 1 Bren don O. doe s a d ai ly nettin g o f

requ i re ments t o d ete rm ine the cal l -of f

am ount fo r co ntro l boxes to Fa b Prod ucts. Problems co uld ar is e if TK

is wo rk in g a week end o r overtim e w/o

no tifying the V endor Liaison

4 Ve ndo r L iaison makes a n E DI cal l -off to Fab Produc ts Ven dor L ia ison Galway, 1 5 Fa b Produc ts Fab Produc ts , 1

ED I tra nsm iss ion s are done da i ly at no on. Th is t ransm iss ion ef fect s

cur rent day deliv er fo r A c las s items

includ ing TCI box es. Fo l low-up m ay

be requ ired v ia th e p hon e i f the ED I

do es n't come th ro ugh or i f the re are speci f ic prob lem s at Fa b P ro duct s.

N orma lly tw o- three days o f TC I

inv ent ory is held at Fab Produc ts

(e.g ., W e d. pm product is del ivere d to TK on F r iday pm )

5 Fab Prod ucts rece iv es cal l -o f f f or TC I b oxes a nd sh ips

th e uni ts to T K v ia t ruck

F ab Pro duc t s Fab

Produc ts , 1

NC NC G alwa y D rop Queue Galw ay, 1 U ni ts s hipped to Galw ay w i ll be

pu l led o ut of stock as disc ussed

ab ov e

6 Fab Prod ucts f axe s a cop y o f the s hip ping document to Ga lway Store s

F ab Pro duc t s Fab Produc ts , 1

NC NC S tores Galw ay, 1 Ga lway st ores receive s fa x f ro m Fab Prod ucts

7 St ores perso nne l re ce ive s sh ippin g doc umen t an d

v eri f ies rec eip t o f m at er ia l at drop queue

Sto res Galway, 1 5 G alwa y D rop Queue Galw ay, 1 St ores check s the del iv ery qua ntit y .

A f ter v er i fying the c or rect del ivery

am ount, the E DI order is proce sse d

as a receip t8 Pa in t area c harge han d (day s hift ) goe s to o uts ide drop

area to br ing in TC I b oxe s for p aintin g

Pain t Bo oth Galway, 1 5 G alwa y D rop Queue Galw ay, 1

9 TC I b oxes m oved from q ueu e t o pa int boo th que ue Galw ay D ro p Q ueu e Galway, 1 5 P aint Boo th Queue Galw ay, 1 C harge ha nd br ings c art in w ith TC I

un i ts de liv ered on previous day . T h is is no rmally done pr ior to s econ d sh if t

sinc e black p ain t ing is done on

secon d sh if t

1 0 Prog re ss Chaser goes to the head of the c ontrol box

sub assembly line an d mak es det ermin ation of number o f uni ts to m ove from pa int to hea d o f subassembly l ine

Control Box

Sub assembly

Galway, 1 5 P aint Boo th Galw ay, 1 Prog re ss chaser m ake s the ro un ds of

sev era l loca tions in the f ac tory t o de term ine ma ter ial n eed s. H e the n

commun ica tes t o the supplying area s

w hat the bu i ld requ i re ments. TCI box

requ i re ments a re communicated to

the P aint Booth

1 1 Pa in t area c harge-ha nd (n ight shi ft ) per fo rm s a phys ica l v al idat io n o f box re qui remen ts by going to the head of

th e sub assembly area

Pain t Bo oth Galway, 1 5 Con trol Bo x Su b-A ssemb ly Queue

Galw ay, 1 T his proc ess invo lv es checking & rec hec kin g rqt s. N ormal ly th e paint

area likes to k eep + 10 i tem s more

than are need ed in th e p ip el ine

1 2 Pa in t booth charge hand loads TC I b oxe s ont o pa in t fixtures

Pain t Bo oth Queue Galway, 1 10 P aint Boo th Galw ay, 1 Paint f ixture s dic tat e w hat is pa in ted

1 3 Bo x runs throu gh pre -t reatment, paint , a nd dry Pain t Bo oth Galway, 1 12 0 P ost P a int Que ue Galw ay, 1 Box es are queue d at th e end o f the

pa int b oo th

Develop Program

Schedule

(Program Office)

B

Develop Aircraft

Schedule

Define Cost

Accounts

Obtain

Contract

(Contracts)

Develop

Engineering

(Engineering)

Generate

Planning

(Planning)

Develop BOM

(Planning)

Load/Hang

Demand in

SAP

(Program Office)

(Program Office)

(Planning)

Develop Program

Schedule

(Program Office)

B

Develop Aircraft

Schedule

Define Cost

Accounts

Obtain

Contract

(Contracts)

Develop

Engineering

(Engineering)

Generate

Planning

(Planning)

Develop BOM

(Planning)

Load/Hang

Demand in

SAP

(Program Office)

(Program Office)

(Planning)

Target value streams / processes selected

.

4

EPDMEPDM

EPDM

EPDMPro E

Pro

Interlink

EPDM

EPDM

EPDM

EPDM

EPDMEPDM

EPDM

EPDM

MAC

PAC

MAC

PACOrganizational In

formational

Physical

Policy

Convert Plan Order t o

Prod. Orde r

(Production Coo rdinato r)

Track

Fabrication

Run MRP

(IT System )

Convert Plan

Orders t o

Purchase Req.

(MRP Controller )

Convert to

Purchase

Order

(Purchasing)

Track

Purchase

Order

(Purchasing)

Receive

Material

Stock Material

(180 & 209 )Issue

(MRP Controller )

Purchase

Convert PlanOrder f or B

Product Kit

Issue to KitGoods

Receipt

DD 250

Kits GFE

Fabricate

D

Put in Work

(Production Coo rdinato r H/D/L)

DR ApprovalCycle

Hangar, Dock & Line

Hang

Demand

C

C

Assess NavyAvailability

(ACC Coordinator )

Cut DummyPO

Conduct

Make/Buy

Yes - "Q"#

No - "CAP"O&A

Track G FE(CAMS List) A

Hang

DemandBuyB

Aircraft

A

Hot DR

?

Put in Work

(Material

Coordinator )

(MRP Controller ) (MRP Controller ) (Receiving)

AVO Supply

Chain

Fit

Check

(Receiving) YES (Warehousing )

(MRP Controller )Procuremen t

(MRP Controller )

AVO

(MRP Controller )

Convert Plan

Order t o

Prod. Orde r

Comp lete

Work

DR

CORE

(ACC Coordinator ) (ACC Coordinator )

(ACC Coordinator ) (ACC Coordinator )

Kit 1 5

9

7

8

10

Actual work configuration is illustrated via work visualization tools

Work configuration data captured in structured worksheet format

Redesigned work configuration documented in worksheet and used to generate benefit estimates

Reconfiguration in multiple dimensions using lean and Six Sigma techniques

New work configuration is modeled and expressed as new process


� Current bid policy / process

requires a substantial

number of manual

information exchanges

� Physical separation of

engineering functions

creates a significant amount

of manual, paper-based

communication during

design and planning

� Perceived difficulty of

extracting information from

existing ERP system results

in planning activities being

performed in stand-alone

applications

Transactional Statistics

Findings

Cycle Time

Effort Time

6 5 4 3 2 1 Months

Denotes site change

Physical flow

Information flow

Denotes building changeDesignAssembly

Quality

Control

Receiving

Material

PlanningWIP

Mechanic

1

Mechanic

2

Mechanic

3

Mechanic

4

Mechanic

5

Mechanic

6

Mechanic

7

Mechanic

8

Supplier

1

Mechanic

9

Warehouse

Supplier

2

Supplier

3

Supplier

4

Supplier

5

Suppliers

Total Nodes Involved 19

Total Hand-offs 39

Manufacturer

Unique value stream modeling tools provide insight into workflow, organizational hand-offs, and policy impacts


� Current bid policy / process

requires a substantial

number of manual

information exchanges

� Physical separation of

engineering functions

creates a significant amount

of manual, paper-based

communication during

design and planning

� Perceived difficulty of

extracting information from

existing ERP system results

in planning activities being

performed in stand-alone

applications


Findings

Cycle Time

Effort Time

6 5 4 3 2 1 Months

DesignAssembly

Manufacturer

Customer

SalesMechanical

EGR

Electrical

EGR

Service

Quality

Control

EGR Admin

Purchasing

Production

Planning

Shelf

Supervisor

Receiving

Material

Planning

WIP

Mechanic

1

Factory

Mgr

Mechanic

2

Mechanic

3

Mechanic

4

Mechanic

5

Mechanic

6

Mechanic

7

Mechanic

8

Supplier

1

Mechanic

9

Warehouse

Supplier

2

Supplier

3

Supplier

4

Supplier

5

5010

10

Infor

InforExcel

Access

OutlookInfor

Infor Excel

50

Infor

Auto

Mgr

Auto

CAD

Infor

Infor

Infor

Suppliers


Total Hand-offs 224Denotes site change

Physical flow

Information flow

Denotes building change

Incorporation of information flows and “sources” provides the complete view of value stream complexity required for redesign


Slide 1Confidential and Proprietary. Copyright © 2003 STERIS Corporation

and Deloitte Consulting (US) LLC All Rights ReservedGMP2

Cycle Time

Effort Time

6 5 4 3 2 1 Weeks

� Current engineering

activities are heavily paper

driven and contain a

substantial number of

manual information

exchanges

� The use of multiple,

disparate information

sources and planning

systems increases both

hand-offs and the risk for

error in the process

� Inadequate process gates

result in out of sync

requirements definition,

engineering, and

manufacturing activities


Preliminary Findings


Total Hand-offs 375

10 9 8 716 15 14 13 12 1120 19 18 17

Contracts

Project MgrSalesRep

CSR

POP

Coordinator

Lead Engineer

Electrical

Engineer

Production Planning

MechanicalEngineer

Programmer

Purchasing

Draftsperson

Engineering

Manager

EGR Planning

Internal

CSR

EGR CSR

Mechanical Designer

Electrical Designer

Secretary

Order

Coordinator

Centocor

HartSmart

Out

look

Out

look

Excel

Oracle

Out

look

Out

look

Excel

Out

look

AdobeSymix

Excel WordAutoCAD

Outlook

Out

lookAutoCAD

Out

look

Out

look

Outlook

SymixWord

ExcelWordAuto

CAD

Out

look

ExcelWordAuto

CAD

Out

look

Symix

Out

look

Oracle

Excel

Out

look

Oracle

Excel

Symix Outlook

Excel

Symix

Project

Out

look

Excel

Out

look

Excel

AutoCAD

Symix

Out

look

Outlook

Excel

Excel

Word

Auto

CAD

Outlook

Out

lookSymix

SuppliersCustomer

Mentor

Erie

Quebec

The baseline process shows a complex activity map with

multiple hand offs, multiple functions, and disparate systems

resulting in long lead time

Information Flow

Denotes site change

A more complete understanding of work configuration allows integrated lean-IT designs to be developed

Reconfiguration Impacts:

• Organizational hand-offs reduced by 51%

from 375 to 134

• Reduced number of organizations involved

in order capture process by 22%

• Information sources reduced by 50%

• Effort time reduction of approximately 40%

As-Is Order Capture Process

To-Be Order Capture Process

Reconfigured Design Involved:

• Technology changes

• Policy changes

• Workflow changes

• Organizational alignment

Slide 1Confidential and Proprietary. Copyright © 2003 STERIS Corporation

and Deloitte Consulting (US) LLC All Rights ReservedGMP2

� The configuration process will

improve order definition ,

accuracy, and completeness

resulting in a reduction in

engineering involvement

� The implementation of

Siebel/Oracle will streamline the

order entry process removing the

manual interfaces between the

Order Entry Worksheet, Oracle

and Symix

� Dedicated technical support in the

sales cycle and the deployment of

the SSQ web site plus direct entry

of SSO orders into Siebel by the

Project Manger will result in clean

orders requiring less engineering

rework through in the engineering

design phase

Reconfiguration Themes

Suppliers

Customer

Mentor

The future order capture process dramatically increases order

quality while reducing overall effort and cycle time

Contracts

ProjectManager

Sales

POPCoordinator

Electrical

Engineer

MechanicalDesigner

Programmer

Purchasing

LeadEngineer

EngineeringPlanning

BOMCoordinator

Draftsperson

ElectricalDesigner

Secretary

Hart

Smart

CENTOCOR

Out

look

Out

look

Outlook

SSQ

Web

SSQ

Web

SSQ

Web

SSQ

Web

SSQ

Web

Siebel

Oracle

Project

Oracle

AutoCAD

Auto

CAD

Auto

CAD

Auto

CAD

Oracle

Adobe

Word

Out

look

SSQ

Web


Total Nodes Involved

Total Hand-offs

Reduction in Nodes

Reduction in Handoffs

Cycle Time Reduction

18

134

22%

64%

40%

Cycle Time

Effort Time

6 5 4 3 2 1 Weeks10 9 8 716 15 14 13 12 1120 19 18 17

Information Flow

Denotes site change

SSQ

Web


ELSS can have a direct impact on the design, setup, and configuration of Oracle solutions

• Workflows

– Example: Order capture workflow configuration

• BOM structure

– Example: De-layering of bill to reduce transactions and mirror material flow

• Assembly, feeder line, and cell definition

– Example: Synchronization points

• Business rules / policies

– Example: Transition of material replenishment via MRP to demand driven methods such as kanban

• Organizational roles / role definition

– Example: Roles definition for system tasks


• The project was conducted as part of a business transformation initiative for a global Fortune 1000 company using lean operating principles and Oracle technology

• Project focused on the lean reconfiguration of two European production operations and the supporting technology infrastructure

• The primary objectives of this project included the following:

– Reconfigure production, engineering, and supplier interfaces to drive cost and performance improvements

– Facilitate consolidation of production operations into a single plant

– Develop a “lean” operating configuration for the Oracle Flow Module

• A comprehensive production system design was prepared and a major component of the new, lean design was successfully implemented

Lean / Flow Transformation Case Study


• Effort (productive) time ranged between 2% and 18% of cycle time (total elapsed time)

• Up to 75% of effort time comprised of non-value added activities

• Average lead time for products from feeder lines is 5 days for products requiring only 5 hours of touch labor

• Over 900 hand-offs / transactions to build a frame

• Part routings were highly variable across multiple stations

• Batch sizes of 200 units (5 days supply)

• Imbalance of “skin”products throughout system

Work Configuration Examples

25

Value stream analysis indicates reality…unnecessary production complexity and multiple impediments to flow

Intra-site Physical Flow

Informa tion Flow

Inter-site Physical Flow

240 220 200 180 160 140 120 100 80 60 40 20

Cycle T ime

Effort Time

Hours

• Large imbalanced WIP i nventory level s required to sustain current pr oduction configuration

• Parts travel a total of 4.6 miles within the plant be fore frame is delivered to final assembly

• Value-added effort time is 15% of total cycle time

Cycle Time: 197 hrs*

Effort Time: 86 hrs*

Handoffs: 650*

Distance

Intra-site: 7353 m*

Value Stream Analysis

SHEET STORAGE

FRAME

ROBOTIC

WELDING

WELDING

TEST

ASSEMBLY 1EVAC.

LEAK

TEST

PRETEST

DIP PAINTDIP

TANKS

SUB

ASS’Y

CD ASSEMBLY

MPE

CONTROL BOX

SOLDERINGSKINNING

TLE ASS’Y

POWDER PAINT

SPRAY TUNNEL

MAINTENANCE

STORES

FORM

SPOT WELD

LINER

SUB-

ASS’Y

ASSEMBLY 2MINI MARKET

PUNCH

11

8

7

STOPA

Tool Die

U

80

100

T 260N

55 Ton

STOPA

Tool Die

U

80

100

T 260N

55 Ton

11

8

7

STOPA

Tool Die

U

80

100

T 260N

55 Ton

STOPA

Tool Die

U

80

100

T 260N

55 Ton

* Does Not Inc lude F inal Assembly

Level 1 Physical Space Map (As-Is): Frame

Dub lin

Gal way

Dub lin

Gal way

26

Complex routings increase WIP, material handling, and cycle time



Intra-s ite Phys ical Flow

Informa tion Flow

Inter-s ite Phys ical Flow

240 220 200 180 160 140 120 100 80 60 40 20

Cycle T ime

Effort Time

Hours

• Each frame consists of 81 parts tha t must be planned, pr oduced, and managed

• Complex producti on system requires “informal” pr oduction control

• Process inv olves nearly 650 tra nsacti ons (information and physical )



Handoffs: 650*

Distance

Intra-site: 7353 m*


Fork lift

W eld ing

Queue 1

W eld ing

Robot 2

W eld ing

Robot 2

Spot

Weld

100 Ton 150 TonLVD2

STO PA

ROLLER CONV EYOR

Tool Die

50 Ton

Supervis or

U

80

100

160

T P

RE

SS

GUILLOTINE

250 Ton Press

CNC T 260T 260

N

55 TonSmal l EPLVD1 P /B

P /B

Fork lift

W eld ing

Queue 1

W eld ing

Robot 2

W eld ing

Robot 2

Spot

Weld

100 Ton 150 TonLVD2

STO PA

ROLLER CONV EYOR

Tool Die

50 Ton

Supervis or

U

80

100

160

T P

RE

SS

GUILLOTINE

250 Ton Press

CNC T 260T 260

N


P /B100 Ton 150 Ton

LVD2

STO PA

ROLLER CONV EYOR

Tool Die

50 Ton

Supervis or

U

80

100

160

T P

RE

SS

GUILLOTINE

250 Ton Press

CNC T 260T 260

N


P /B LVD2

STO PA

ROLLER CONV EYOR

Tool Die

50 Ton

Supervis orSupervis or

U

80

100

160

T P

RE

SS

GUILLOTINE

250 Ton Press

CNC T 260T 260

N


P /B

Value stream analysis of sample parts highlighted complex factory work configurations that drive cost and inhibit flow

Sample Physical Map


• Final assembly stations

balanced to optimize

operator utilization

versus flow of units

Selected Findings

Additional analyses were conducted on production operations to reveal root causes of cost and performance issues

34

A capacity analysis revealed the possibility of reducing the number of machine resources required to deliver skin parts by standardizing routings

� A total of five sheet metal forming machines, down from nine, will be required in the

final to-be state

� To further increase flexibility, improve response time and decrease batch size, work

will be sequenced to minimize setup times and maximize the use of parallel work

Machine Setup

Hits/

Bends

Per Part

(min)

Setup

(min)

Pcs/

Sheet

Time/

Sheet

Demand

Size

Parts/

Uni t

Total

Run

100T P/B S1 10 2.5 20 N/A N/A 50 2 250

100T P/B S1 2 0.5 20 N/A N/A 50 1 25

100T P/B S2 1 0.25 20 N/A N/A 50 2 25

100T P/B S2 1 0.25 20 N/A N/A 50 1 12.5

100T P/B S2 1 0.25 20 N/A N/A 50 1 12.5

100T P/B Total 100 325

160T PP S1 1 0.55 15 N/A N/A 50 2 54.5

160T PP S2 1 0.5 15 N/A N/A 50 2 50.0

160T PP S3 1 0.55 15 N/A N/A 50 1 27.3

160T PP S4 1 0.55 15 N/A N/A 50 1 27.3

160T PP S3 1 0.55 15 N/A N/A 50 1 27.3

160T PP S3 1 0.55 15 N/A N/A 50 1 27.3

160T PP S3 1 0.55 15 N/A N/A 50 1 27.3

160T PP Total 105 240.9

50T P/B S1 5 1.25 25 N/A N/A 50 1 62.5

50T P/B S1 6 1.5 25 N/A N/A 50 1 75

50T P/B S1 7 1.75 25 N/A N/A 50 1 87.5

50T P/B S1 5 1.25 25 N/A N/A 50 1 62.5

50T P/B Total 100 287.5

LVD2 S1 12 3 20 N/A N/A 50 1 150.0

LVD2 S2 4 1 20 N/A N/A 50 1 50.0

LVD2 S3 2 0.5 20 N/A N/A 50 1 25.0

LVD2 S4 4 1 20 N/A N/A 50 1 50.0

80 275.0

At 346 minutes (241

run time + 105 setup time) and with the most

setup requirements the

160T Press will have to be closely monitored

when maki ng any improvements i n the

100T Press

With a total of 425 minutes (325 run time

+ 100 setup time) the 100T Press is the

machine capacity

constraint within the cell

Reconfiguration and Implementation

38

Final assembly balance (paint to skinning)

0

5

10

15

20

25

30

35

Stations

Tim

e

Despite having balanced labor per station, the workflow for units is erratic, giving rise to bottlenecks and hindering true flow

Note: This is only the time spent working on the unit. T he time for s tation 9- 32 was divided by two, evacuation’s time as well as

testing time was divided by 3 (number of stations ac tive at the time of observation)

The analysis indicates that the average work content (unit assembly) is only 8-10 minutes

per station

Final Assembly Flow Assessment

Re-work at the blower housing

caused this peak

The soldering stati ons are in line with each

other & perform the

same work, one unit has to wait for another

Electric pre-

testing

Trend line of time spent on a unit by stati on

Rework

Final

testing

Evacuation

Takt time

� Machine capacity analysis revealed

opportunity to reduce equipment

by 20% simply by standardizing

product routings

28

32

SHEE T STO RAGE

FRAME

ROB OTIC

WEL DING

WEL DING

TEST

ASSEMBLY 1E VAC.

LEAK

TEST

PRETEST

DIP PAINTDIP

TANKS

SUB

ASS’Y

CD ASSEMBLY

MPE

CONTROL BOX

SOLDE RINGSKINNI NG

TLE ASS’Y

POW DER PAINT

SPRA Y TUN NEL

MAINT-

EN ANCE

STORES

FORM

SPOT W ELD

L INER

SUB-

ASS’Y

ASSEMBLY 2MI NI MA RKET

PUNCH

In tra -si te Phy si c al Flo w

Info rma ti o n Flo w

In te r -si te Phy si c al Flo w

Cyc le Time

Effo rt Time

Hour s

Level 1 Physical Space Map (As-Is): Roadside Panel

• Redu ndan t co mmunica tio n of pro duc tio n pri orities bet ween ma nagers a nd o pera tors

• Ma chine oper ator s depe nde nt on mate rial handlers to mov e pa rts b etween pr ocesses

• F our of se ven of t he ski n parts go t hr oug h the same po wer press ope ra tio n (sa me setup) but

a re pu nche d in s epar ate nest s

Cycle Time: 147. 5 hr s

E ffor t Time: 2. 6 hrs

Hand offs: 28

Dista nce

Intra-site: 900 m

M grs. Office

SPOT

W ELD

G alwayG alway

Material Handling

Mgr’sOffice

Valu e Stre am Anal ysi s

2 40 2 20 2 00 1 80 1 60 1 40 1 20 1 00 80 60 40 20

Physical mapping of a roadside panel illustrated significant reconfiguration opportunities for the skin product value stream

� Effort time was less than 2% of cycle time

� In-factory response time of 10 working

days to deliver a product that requires less

than 5 hours of work

� Significant imbalance in skin products

throughout the production system

� The number of skin components in WIP

equated to 256 ship sets or 5.4 day s of

supply

� Howev er, the actual mix of components

y ielded only 85 complete ship sets – 67% of

the parts were not matched to end-item

demand

� Part routings were highly complex and

variable across 9 machines

� Batch sizes of 200 units were being run

through the sheet metal area

As-Is Conditions:

0

50

100

150

200

250

300

350

400

450

500

Bellyband

Bonne

t

Curbside D

oor

C urbsid

e Pan

el

Grills (

sets)

Roadsid

e Doo

r

Roadsid

e Pane

l

Skin Component WIP Profile

Reconfiguration and Implementation

� Analysis of skin product

WIP highlighted a

complete imbalance of

product flow to support

final assembly…increasing

WIP by 60%


� Production control requires multiple people, processes, and systems

� Push-oriented operating model

� Complex material flows and routings

� Disparate information systems

� Operating metrics not aligned with lean / flow mfg.

� Functionally oriented plant layout and organization

� Cumbersome engineering change management process

� Sub-optimized make / buy decision-making

� Multiple interplant and supplier dependencies

� Fragmented supplier management activities

40

Organizatio nal Space Map (As-Is) - Order Reple nishm ent Process

In tr a-si te Physic al Fl owI nfo rm ati on Flow

In ter -si te Physic al Fl ow

S i te Ma rker

Bu ildi ng Ma rker

� C ompl exi ty in the pro ce ss dr ive n

b y m ultip le I nf o rmat ion S yst em s

tha t req ui re h um an co nn ec tivity

� Org ani zat ion struc tu re dri ve s th e

ma nag em ent and lo gisti cs o f o rd er replen ishment proc es s ra th er tha n

ef fi cienc y and c ust omer ne ed s.

� For pa rt # 3D95 795 G0 7 t he tim e

fro m rep lenishmen t n eed b eing

determi ned un t il that sp eci fic part

gets a ssemb led o n a un it is ov er 1 4 wee ks

* Analysi s d oes n ot i ncl ude detail ed process in Mi nneapo lis

Han d-o ff Sta ti sti cs

In ter -S ite 5

Inside Dub l in 5

I nsi de Ga lway 22

Ins ide Minn eapo l is 3*

T otal Han do ffs 35

Total No des / Org s 2 0

CMS ( IS)

Mate ri al Co ord inat or D ubl in

Kan ban L oc D ubl in

Shi ppi ng & R ecei ving

D ubl in

Mater i al Coo rdi nat or G alw ay

Pi ckli st ( IS)

Mater ia l Runner Queue

(Ga lwa y)

Mat er ia l Runner Galw ay

St ockr oom Galway


Qu eue G alw ayShi ppi ng & Recei ving

Galw ay

T IME Syste m ( IS)

Purchasi ng G alway

Lega cy

S ystem

S ales &

Market ing

Pla nning

G alw ay

Pla nning

M inne apol is

Manufa cturing M inne apol is


M inne apol is

MAS A, M inne apol is

Val ue Stream Map pi ng

24

Weld

ing

Warehou se

Dubli n Pl ant

P unchi ng

Machin e S hop

Shi ppin g & Re ceivi ngC ra ti ng

Test

Tubi ng

P aint S hop

O ff i ces

Fi nal Ass embl y

Sub Ass embl y

Press Brake

S olde ri ng

S kinni ng

Of fi ce Of fi ce

Dubl in

G alway

L evel 1 Phy si cal Space M ap (As-I s) : Accu mul ator Tan k

Weld ing

S mal l Pa rts

St orage

Deg

Cut

Pu

Mult i

Ben

Sm s tMSLg sto

HS

In tr a -si te Ph ys ic al F low

I nf orma tio n F low

In ter -si te Ph ys ic al F low

1 20 1 10 1 00 90 80 70 60 50 40 30 20 10

Cyc le T ime

Eff o rt Ti me

Hours

• In f orma tio n abo ut pro du ction an d ma ter ia l req ui reme nts no t fo rmally co mmu nicated

• Re dundant i nf orma tio n about f inal ass embly s equ en ce track ed by sep arat e pro ce sse s

• Ou tsi de pro ce ssing th e f orming o f t he water cap in Ga lway expa nd s th e cyc l e ti me b y

a t leas t one wee k

C yc le Ti me: 117 h rs

Ef fo rt Time: 1 2 h rs

H ando ff s: 89

Di st ance

T ra veled: 11 63km

Value S tream Map ping

18

In tr a -s i te Phy s ic al Flow

I nf o rma tion Flow

In ter -s i te Phy s ic al Flow

240 220 200 180 160 140 120 100 80 60 40 20

Cy cle T ime

Eff ort T i me

Ho urs

Wel d

Warehou se

Du blin Pl ant

P unchi ng

Machin e S hop


Test

Tubi ng

P aint S hop

Weld ing & Sandi ng

O ff i ces

Sub Ass embl y

Pr ess Br ake

S olde ri ng

S kinni ng

Of fi ce Of fi ce

Dubl in

G alway

Level 1 Phy si cal Space Map (As-Is): F rame

Fro m

G alw ay

• Mult i ple pro ductio n c ont ro l syst ems in use wi th di f fer en t priori ties c oor dinated by sp ecia lis ts & l ine f eeders

• Ef for t t ime is 16% o f Cycl e ti me

• F ina l Asse mb ly uses contr ol b ox a va ilabi li ty t o determi ne frame line on seque nce

Cy cle Ti me: 191 hr

Ef for t Ti me : 31 hr

Han doffs: 5 63

Distance

I ntra-s ite: 395 2 m

V al ue Stream Map pi ng

47

Organiza tional Space Map (As-Is) - Order Replenishment Process

In tra-sit e Physic al Fl owIn formati on Flow

In ter -sit e Physic al Fl ow

S i te Ma rker

Bui ldi ng Ma rker

� Co mpl exi ty in t he pro ces s dri ve n

by mu ltipl e Info rmat ion System s

t hat requ i re h um an co nn ec ti vi ty

� Orga ni zat ion st ructu re drive s th e

manageme nt and lo gisti cs o f o rder re plenis hmen t p roc es s rather t ha n

effic ien cy a nd c ust omer ne ed s.

� F or part # 3D95 795 G0 7 the t im e

from rep le nish men t n eed being d etermi ne d un til that sp eci f ic part

get s as semb led o n a un it is ov er 1 4 wee ks

*An al ys is does no t in clu de d eta il ed process in Mi nneapo li s

Han d-o ff Sta tistics

In t er-Si te 5

Inside Dub l in 5

I nsi de Ga lway 22

I ns ide M inn eapo l is 3*

T otal Hando f fs 35

To tal N o des / Org s 2 0

CMS ( IS)

Mater i al Co ord inat or D ubl in

Kanb an L oc D ubl in


D ubl in

Ma ter ia l Coor di nat or

G alw ay

Pi ckli st ( IS)

Ma teria l R unner Queue

( Ga lwa y)

Mat er ia l R unner Galw ay

St ockr oom Galw ay

Shi ppi ng & Recei ving

Que ue G alw ayShi ppi ng & R ecei ving

G alw ay

T IM E S yste m ( IS)

P urchasi ng G alw ay

Lega cy

S ystem

S ales &

Market ing

Pla nning

G alw ay

Pla nning

Minne apol is

Ma nufact ur ing M inne apol is


M inne apol is

MASA , Minne apol is


29

Intr a -s i te Phys ic al Flow


Inter -s i te Phys ic al Flow

Dubl in

G alway

Level 1 Phy si cal Space Map (As-Is): Tube

Weld

ing

Outsid

e Stor

age

Du blin Pl ant

P unchi ng

Machin e S hop


Test

Tubi ng

P aint S hop

Weld ing & Sandi ng

O ff i ces

Fi nal Ass em bl y

Sub Ass embl y

Pr ess Br ake

S olde ri ng

S kinni ng

Of fi ce Of fi ce

Outs ide V endo rs

C yc le Time: 108 h rs*

Tou ch Time: 3 h rs*

H ando ffs: 25*

Dis tan ce

I ntra-s it e: 290 m*

* Doe s Not I nc lude Fi n al A ssem bly

• Mu lti ple production sy st ems at pl ay , compl e te ly d ef ea tin g any kan b an

production co nt ro l in iti ative s

• Ef fort ti me i s l es s than 3% of cyc le time*

• Pa rt go es th rou gh 9 q ueues f rom t ime rece ived thro ug h FA St ati on 11 queue

120 110 100 90 80 70 60 50 40 30 20 10 Ho urs

Cy cle T ime

Eff ort T i me

Val ue S tream Map pi ng

38

Cycle Time

E ffort Time

Weld

ing

Pl ant

P unchi ng

Machin e S hop


Test

Tubi ng

P aint S hop

Weld ing & Sandi ng

O ff i ces

Fi nal Ass em bl y

Sub Ass embl y

Pr ess Br ake

S olde ri ng

S kinni ng

Of fi ce Of fi ce

Dubl in

Galway

Level 1 Physi cal Space Map (As-is) –Suppor t Brack et

Cycl e Time:

E f for t Ti me

Han dof fs:

71 .5 ho urs*

3 .8 ho urs*

34

D is tan ce

In tra-sit e: 582 m

• P ull sig nal is defeated by batchi ng and queu ing of parts. Th is par t icu lar part wa s “at t he top of th e h eap”

• E ffort t ime is 5% of cyc le ti me

• U nne cessary hand li ng s tep s e. g. s ub-assembly for a 45 sec ond s tep , movement o f cut p anels outside




Y ard

*N eed fo r p art was id enti fied fiv e d ay s prio r to th is ; doe s no t i nc lu de f in al as s emb ly

120 110 100 90 80 70 60 50 40 30 20 10 Ho urs

Outs ide V endo rs


35

Weldi

ng

War ehou se

Du bli n Pl ant

P unchi ng

Machin e S hop


Test

Tubi ng

P aint S hop

Weld ing & Sandi ng

Off i ces

Fi nal Ass embl y

Sub Ass embl y

Press Br ake

S olde ri ng

S kinni ng

S ub-

Ass’ yOf fi ce

Level 1 Physical Space Ma p (As-Is): Back Idler Pu lley

I ri sh Express CargoFOMP

( It al ian Su pp li er)

In tr a-s it e Phy sic a l Flo w

In f orma tion Flow

Inte r -s it e Phy sic a l Flo w

12 0 11 0 10 0 9 0 8 0 7 0 6 0 5 0 4 0 3 0 2 0 1 0

Cycle T ime

Eff ort Ti me

Ho ur s

• Sequ ent i a l pro ces ses a re no t al i gn ed to support fl ow b etwee n pro ce sse s

• L on g setu p t im es ( 75 min vs . 5 min V A) in flu enc e 2- 3 week prod uc tio n run s

• Lo ng s uppl ie r l ead t ime s (8 week s) c reat e l arg e in vent ory req ui remen t s


Ef fort Ti me: 5 h rs

Hando ff s: 25

Di stance

I ntr a-s it e: 46 69 m

Dubl in

G alway

Value S tream Mapping

40

Organizational Space Map (As-Is) - Order Reple nishm ent Process

In tr a-si te Physic al Fl owI nfo rm ati on Flow

In ter -si te Physic al Fl ow

S i te Ma rker

Bu ildi ng Ma rker

� C ompl exi ty in the pro ce ss dr ive n

b y m ultip le I nf o rmat ion S yst em s tha t req ui re h um an co nn ec tivity

� Org ani zat ion struc tu re dri ve s th e

ma nag em ent and lo gisti cs o f o rd er replen ishment proc es s ra th er tha n

ef fi cienc y and c ust omer ne ed s.

� For pa rt # 3D95 795 G0 7 t he tim e

fro m rep lenishmen t n eed b eing determi ned un t il that sp eci fic part

gets a ssemb led o n a un it is ov er 1 4 wee ks

* Analysi s d oes n ot i ncl ude detail ed process in Mi nneapo lis

Han d-o ff Sta ti sti cs

In ter-S ite 5

Inside Dub l in 5

I nsi de Ga lway 22

Ins ide Minn eapo l is 3*

T otal Han do ffs 35

Total No des / Org s 2 0

CMS ( IS)

Mate ri al Co ord inat or D ubl in

Kan ban L oc D ubl in


D ubl in

Mater i al Coo rdi nat or G alw ay

Pi ckli st ( IS)

Mater ia l Runner Queue

(Ga lwa y)

Mat er ia l Runner Galw ay

St ockr oom Galway


Qu eue G alw ayShi ppi ng & Recei ving

Galw ay

T IME Syste m ( IS)

Purchasi ng G alway

Lega cy

S ystem

S ales &

Market ing

Pla nning

G alw ay

Pla nning

M inne apol is

Manufa cturing M inne apol is


M inne apol is

MAS A, M inne apol is

Val ue Stream Map pi ng

24

Weld

ing

Warehou se

Dubli n Pl ant

P unchi ng

Machin e S hop


Test

Tubi ng

P aint S hop

O ff i ces

Fi nal Ass embl y

Sub Ass embl y

Press Brake

S olde ri ng

S kinni ng

Of fi ce Of fi ce

Dubl in

G alway

Level 1 Physi cal Space M ap (As-I s) : Accumul ator Tank

Weld ing

S mal l Pa rts

St orage

Deg

Cut

Pu

Mult i

Ben

Sm s tMSLg sto

HS

In tr a-si te Ph ys ic al F low

I nf orma tio n F low

In ter -si te Ph ys ic al F low

1 20 1 10 1 00 90 80 70 60 50 40 30 20 10

Cyc le T ime

Eff o rt Ti me

Hours

• In f orma tio n abo ut pro du ction an d ma ter ia l req ui reme nts no t fo rmally co mmu nicated

• Re dundant i nf orma tio n about f inal ass embly s equ en ce track ed by sep arat e pro ce sse s

• Ou tsi de pro ce ssing th e f orming o f t he water cap in Ga lway expa nd s th e cyc l e ti me b y

a t leas t one wee k


Ef fo rt Time: 1 2 h rs

H ando ff s: 89

Di st ance

T ra veled: 11 63km


18



Inter -s i te Phy s ic al Flow

240 220 200 180 160 140 120 100 80 60 40 20

Cy cle T ime

Eff ort T i me

Ho urs

Wel d

Warehou se

Du blin Pl ant

P unchi ng

Machin e S hop


Test

Tubi ng

P aint S hop

Weld ing & Sandi ng

O ff i ces

Sub Ass embl y

Pr ess Br ake

S olde ri ng

S kinni ng

Of fi ce Of fi ce

Dubl in

G alway

Level 1 Physi cal Space Map (As-Is): F rame

Fro m

G alw ay

• Mult i ple pro ductio n c ont ro l systems in use wi th di f fer en t priori ties c oor dinated by sp ecia lis ts & l ine f eeders

• Ef for t t ime is 16% o f Cycl e ti me

• F ina l Asse mb ly uses contr ol b ox a va ilabi li ty t o determi ne frame line on seque nce

Cy cle Ti me: 191 hr

Ef for t Ti me : 31 hr

Han doffs: 5 63

Distance

I ntra-s ite: 395 2 m


47

Organiza tional Space Map (As-Is) - Order Replenishment Process

In tra-sit e Physic al Fl owIn formati on Flow

In ter -sit e Physic al Fl ow

S i te Ma rker

Bui ldi ng Ma rker

� Co mpl exi ty in t he pro ces s dri ve n

by mu ltipl e Info rmat ion System s

t hat requ i re h um an co nn ec ti vi ty

� Orga ni zat ion st ructu re drive s th e

manageme nt and lo gisti cs o f o rder re plenis hmen t p roc es s rather t ha n

effic ien cy a nd c ust omer ne ed s.

� F or part # 3D95 795 G0 7 the t im e

from rep le nish men t n eed being d etermi ne d un til that sp eci f ic part

get s as semb led o n a un it is ov er 1 4 wee ks

*An al ys is does no t in clu de d eta il ed process in Mi nneapo li s

Han d-o ff Sta tistics

In t er-Si te 5

Inside Dub l in 5

I nsi de Ga lway 22

I ns ide M inn eapo l is 3*

T otal Hando f fs 35

To tal N o des / Org s 2 0

CMS ( IS)

Mater i al Co ord inat or D ubl in

Kanb an L oc D ubl in


D ubl in

Ma ter ia l Coor di nat or

G alw ay

Pi ckli st ( IS)

Ma teria l R unner Queue

( Ga lwa y)

Mat er ia l R unner Galw ay

St ockr oom Galw ay

Shi ppi ng & Recei ving

Que ue G alw ayShi ppi ng & R ecei ving

G alw ay

T IM E S yste m ( IS)

P urchasi ng G alw ay

Lega cy

S ystem

S ales &

Market ing

Pla nning

G alw ay

Pla nning

Minne apol is

Ma nufact ur ing M inne apol is


M inne apol is

MASA , Minne apol is


29

Intr a -s i te Phys ic al Flow


Inter -s i te Phys ic al Flow

Dubl in

G alway

Level 1 Phy si cal Space Map (As-Is): Tube

Weld

ing

Outsid

e Stor

age

Du blin Pl ant

P unchi ng

Machin e S hop


Test

Tubi ng

P aint S hop

Weld ing & Sandi ng

O ff i ces

Fi nal Ass em bl y

Sub Ass embl y

Pr ess Br ake

S olde ri ng

S kinni ng

Of fi ce Of fi ce

Outs ide V endo rs

C yc le Time: 108 h rs*

Tou ch Time: 3 h rs*

H ando ffs: 25*

Dis tan ce

Intra-s it e: 290 m*

* Doe s Not I nc lude Fi n al A ssem bly

• Mu lti ple production sy st ems at pl ay , compl e te ly d ef ea tin g any kan b an

production co nt ro l in iti ative s

• Ef fort ti me i s l es s than 3% of cyc le time*

• Pa rt go es th rou gh 9 q ueues f rom t ime rece ived thro ug h FA St ati on 11 queue

120 110 100 90 80 70 60 50 40 30 20 10 Ho urs

Cy cle T ime

Eff ort T i me

Val ue S tream Map pi ng

38

Cycle Time

E ffort Time

Weld

ing

Pl ant

P unchi ng

Machin e S hop


Test

Tubi ng

P aint S hop

Weld ing & Sandi ng

O ff i ces

Fi nal Ass em bl y

Sub Ass embl y

Pr ess Br ake

S olde ri ng

S kinni ng

Of fi ce Of fi ce

Dubl in

Galway

Level 1 Physi cal Space Map (As-is) –Suppor t Brack et

Cycl e Time:

E f for t Ti me

Han dof fs:

71 .5 ho urs*

3 .8 ho urs*

34

D is tan ce

In tra-sit e: 582 m

• P ull sig nal is defeated by batchi ng and queu ing of parts. Th is par t icu lar part wa s “at t he top of th e h eap”

• E ffort t ime is 5% of cyc le ti me

• U nne cessary hand li ng s tep s e. g. s ub-assembly for a 45 sec ond s tep , movement o f cut p anels outside




Y ard

*N eed fo r p art was id enti fied fiv e d ay s prio r to th is ; doe s no t i nc lu de f in al as s emb ly

120 110 100 90 80 70 60 50 40 30 20 10 Ho urs

Outs ide V endo rs


35

Weldi

ng

War ehou se

Du bli n Pl ant

P unchi ng

Machin e S hop


Test

Tubi ng

P aint S hop

Weld ing & Sandi ng

Off i ces

Fi nal Ass embl y

Sub Ass embl y

Press Br ake

S olde ri ng

S kinni ng

S ub-

Ass’ yOf fi ce

Level 1 Physical Space Ma p (As-Is): Back Idler Pu lley

I ri sh Express CargoFOMP

( It al ian Su pp li er)

In tr a-s it e Phy sic a l Flo w

In f orma tion Flow

Inte r -s it e Phy sic a l Flo w

12 0 11 0 10 0 9 0 8 0 7 0 6 0 5 0 4 0 3 0 2 0 1 0

Cycle T ime

Eff ort Ti me

Ho ur s

• Sequ ent i a l pro ces ses a re no t al i gn ed to support fl ow b etwee n pro ce sse s

• L on g setu p t im es ( 75 min vs . 5 min V A) in flu enc e 2- 3 week prod uc tio n run s

• Lo ng s uppl ie r l ead t ime s (8 week s) c reat e l arg e in vent ory req ui remen t s


Ef fort Ti me: 5 h rs

Hando ff s: 25

Di stance

I ntr a-s it e: 46 69 m

Dubl in

G alway

Value S tream Mapping

Collectively, the as-is analysis identified root cause production system characteristics that impeded the adoption of lean / flow operating techniques


A lean production system was designed using the EOE top-down reconfiguration approach while optimizing work and information flow

Tactical Implementations

Structural

Elements

Top

Level

Architecture

EOE Lean Reconfiguration

10

Final Assembly

Heat E

xchanger &

Tubing A

ssemblies

Skins

Cont rol Box

Accumulator Tank

Frame

Mixed Model Final Assembly

Blower Housing

The product family analysis revealed that six feeder value streams should be incorporated in the To-Be architecture to support the single SL assembly line

Assembly Value Stream

� Single SL model assembly line

Feeder Value Streams*

� Frame Value Stream

� Skins Value Stream

� Blower Housing Value Stream

� Control Box Value Stream

� Accumulator Tank Value Stream

� Heat Exchanger and Tubing


Value streams include all the work activities and materials/components preceding the delivery of completed products to final assembly or the customer

* Product famil y anal ysis provided in the Appendi x

To-Be Plant Architecture and Reconfiguration Princip les

79

SHEET STORAGE

FRAME

ROBOTIC

WELDING

WELDING

TEST

ASSEMBLY 1EVAC.

LEAK

TEST

PRETEST

DIP PAINTDIP

TANKS

SUB

ASS’Y

CD ASSEMBLY

MPE

CONTROL BOX

SOLDERINGSKINNING

TLE ASS’Y

POWDER PAINT

SPRAY TUNNEL

MAINTENANCE

STORES

FORM

SPOT WELD

LINER

SUB-

ASS’Y


PUNCH

Intra-site Physical Flow

Informa tion Flow

Inter-site Physical Flow

Cycle T ime

Effort Time

Hours

Level 1 Physical Space Map (To-Be): Control Box

• WIP in the s ystem reduced from 5 days to 3 days supply• Overall cycle time re duce d 43%

• Effor t time reduced by 14%

• 56% reduction in hand-offs by eliminating part tracking & chasing

Cycle Time: 16 hrs

Effort Time: 4.75 hrs

Handoffs: 19

Distance

Intra-site: 503m

Fabricated Products

Galway

Limerick

Galway

60 55 50 45 40 35 30 25 20 15 10 5

Material Handling

Appendix

27

Grills

Bonnets, Back Panels

Doors and Panels

Dip

Tanks

Paint

Line

Maintenance

The final physical location of the skin cell will take advantage of synergies with the paint area

To-Be Value Stream Reconfiguration – Feeder Value Streams

Product Value Streams Defined

Value Stream Material and Info Flows

Detailed Cell and Station Layouts


The lean plant architecture consisted of a mixed model assembly line and six product value streams linked by a demand-pull system

• Mix model end unit demand

• Product/part rate of use at final assembly

• Point of use

• Replenishment cycle time

• Synchronization points

• Floor space requirements and availability

Information required to make the

linkage between feeder and

final assembly value streams includes:

Initial implementation efforts focused on the “skins”product value stream

10


� Mixed-model assembly line

Feeder Value Streams (Cells)*

� Frame

� Skins

� Blower Housing

� Control Box

� Accumulator Tank

� Heat Exchanger and Tubing

Assembly

Final AssemblyMixed Model F inal Assembly

A product family analysis revealed that six “feeder” value streams should be incorporated in the To-Be architecture to support a mixed-model assembly line

EOE Cas e S tudy

Fram

es

Heat E

xchanger an

d

Tubing Assem

blies

Accumulator Tank

Blower Housing

Control Box

Value streams (Cells) include all the work activities from raw material to delivery of completed products to final assembly or the customer

Skins


141

2

111

0

987

5

Mini

Market

Step

Mini-Market 13

3

4

6

LdB

cart

1

2

Panels Bonnets Grills Doors

Pads

Color Skins

Pads Kits

Belly

band

K

i

t

s

P

a

d

s

SB

Skins

ST 14 Door

Subassembly

Reconfigured a remote

sub-assembly station to

an in-line, position –

enabling single piece

flow

Kanban Carts

Created specific

‘homes’ for

kanban carts and

positioned them in

close proximity to

their respective

stations

ST 8 and 9 Grills

Stations rotated to

eliminate safety

concerns stemming

from the operators

proximity to aisle

and forklifts

ST 5 Panels

Repositioned

bench to

decrease

operator walking

and permit ‘flow’

ST 13 Kits

Organized area by

creating specific

locations for material

bins and ordering them

according to their ‘order

of appearance’

Color Skins

Infrequently used

color skins are

separated from

black and white

Lean principles were applied to enhance the flow of skin parts to the assembly line, improve material management, and reduce operator movement


� Line balancing / sequencing

� Feeder line modeling

� Bottleneck identification

� Kanban planning / execution

� Resource calculation

� Production execution

� Flow scheduling

� Repository of sequence of event

data

� Presentment of operation method

sheets

Sample Oracle Flow Capabilities:

Stand-Alone FlowThe business transformation effort involved the deployment of the Oracle Flow Module to support the lean production architecture

Consequently, Oracle Flow requirements, functionality, and configuration were integral components of the lean redesign effort


Reconfigured Skin Assembly LineFinal

Assembly

S050 – Unit

CleanS056 – Grill

Subassy

S058 – Door

Subassy

Spot, TIG, Sand

Flow Line

Skin Cell “Feeder” line

Kanban

Item

Producing

Line

Sizing

Calculation

Replenish

Lead Time

Oracle Flow was used during the design process to model the lean production system including the final assembly line, feeder lines, and kanban linkages

Kanban Planning


Install Front &

Back Panel

Install Bonnet

& Mesh

Day shift

demand

Currently the

two stations

are staffed with

4 operatorsLabor

needed to

meet TAKT

Evening

shift

demand

Labor needed

to meet TAKT

Grill

Subassembly

Grill Fit

Both stations

can be staffed

by one operator

on evening shift

The mixed model mapping functionality helped optimize the flow of the skin assembly line


• Operators using the ‘Flow Workstation’ can view centralized OMS information from the shop floor

• Common work practices supports flexibility in choosing manufacturing locations for products

Assembly

sequence step

Process specific instructions

and quality information

displayed to operator

Operation Method Sheet (OMS) capabilities were employed to enhance work standardization and quality


63

Level 1 Physical Space Map (To-Be): Frame

Intra-site Phys ical Flow

Informa tion Flow

Inter-site Phys ical Flow

Cycle Time: 48 hrs*


Handoffs: 375

Distance

Intra-site: m*


Dubl in

Galway


• Machine resources for the frame reduced from twenty to twelve• Cycle time reducti on of 75% to 80%

• Effor t time reduction of approximatel y 25%

• Work in pr ocess i nventory reduction of 6 5%

FRAME

TEST

ASSEMBLY 1EVAC.

LEAK

TEST

PRETEST

SUB

ASS’Y

CD ASSEMBLY

MPE

CONTROL BOX

SOLDERINGSKINNING

TLE ASS’Y

POWDER PAINT

SPRAY TUNNEL

STORES

LINER

SUB-

ASS’Y

ASSEMBLY 2

Wel di ng

Rob ot 1

Wel di ng

Rob ot 1

Wel di ng

Rob ot 2

Wel di ng

Rob ot 2

Fr ame Wel din g R obot

Top And Bot tom Member s

S ide M ember sSTO PA

T 26 0 S /AT 26 0 S /A

S ide M ember s

F eederTS 500 ( 22) F eederTS 500 ( 22)

Top & Base Member s

Jackshaf t,

C ente r Memb er & O the r Par t s

GU ILLO TI NEGU ILLO TI NE

Wel di ngWel di ng

250 To n P re ss250 To n P re ss

8 0 P8 0 P

15

0 T

on

P/B

15

0 T

on

P/B

S m all E P S m all E P

Secon d P hase

Frame Wel di ng

Secon d P hase

Frame Wel di ng

T 26 0

L arge E P (28) L arge E P (28)

LV

D1 P

/B

LV

D1 P

/B

55 P

/B

100 P 100 P

Queu e

Queu e

Queu

eQue

ue

Small Brackets and Components Cel l

Dunk

R inse

R inse

R inse

A cid

R inse

R inse

R inse

Zinc

R inse

Pass

IP K

IP K

Paint B oot h

MAINTENANCE

Cycle T ime

Effort Time

240 220 200 180 160 140 120 100 80 60 40 20 Hours

64

Level 2 Physical Space Map (To-Be): Frame – Sheet Metal & Welding


Value Stream To-Be Design

Intra-s ite Physical Flow

Informa tion Flow

Inter-s ite Physical Flow

240 220 200 180 160 140 120 100 80 60 40 20

Cycle T ime

Effort Time

Hours

Cycle Time: 48 hrs*


Handoffs: 375*

Distance

Intra-site: 3500 m*

Welding

Robot 1

Welding

Robot 2

Frame Welding Robot

Top And Bottom Members

Side MembersSTOPA

T 260 S/A

Side Members

FeederTS 500 (22)

Top & Base Members

Jackshaft,

Center Member & Other Parts

GUILLOTINE

Welding

250 Ton Press

80 P

150 T

on

P/B

Small EP

Second Phase

Frame Welding

T 260

Large EP (28)

LV

D1

P/B

55 P

/B

100 P

Queue

Queue

Queue

Queue

• Machine res ources for the frame reduced from twenty to twelve• Cycle time reducti on of 75% to 80%

• Effor t time reduction of approximatel y 25%

• Work in pr ocess inventory reducti on of 6 5%

25

Value stream analysis indicates reality…unnecessary production complexity and multiple impediments to flow


Informa tion Flow


240 220 200 180 160 140 120 100 80 60 40 20

Cycle T ime

Effort Time

Hours

• Large imbalanced WIP i nventory level s required to sus tain current pr oducti on configuration

• Parts travel a total of 4.6 miles within the plant be fore frame is delivered to final assembly

• Value-added effort time is 15% of total cycle time



Handoffs: 650*

Distance

Intra-site: 7353 m*


SHEET STORAGE

FRAME

ROBOTIC

WELDING

WELDING

TEST

ASSEMBLY 1EVAC.

LEAK

TEST

PRETEST

DIP PAINTDIP

TANKS

SUB

ASS’Y

CD ASSEMBLY

MPE

CONTROL BOX

SOLDERINGSKINNING

TLE ASS’Y

POWDER PAINT

SPRAY TUNNEL

MAINTENANCE

STORES

FORM

SPOT WELD

LINER

SUB-

ASS’Y


PUNCH

11

8

7

STOPA

Tool Die

U

80

100

T 260N

55 Ton

STOPA

Tool Die

U

80

100

T 260N

55 Ton

11

8

7

STOPA

Tool Die

U

80

100

T 260N

55 Ton

STOPA

Tool Die

U

80

100

T 260N

55 Ton



Dub lin

Gal way

Dub lin

Gal way

26

Complex routings increase WIP, material handling, and cycle time




Informa tion Flow


240 220 200 180 160 140 120 100 80 60 40 20

Cycle T ime

Effort Time

Hours

• Each frame consists of 81 parts tha t must be planned, pr oduced, and managed

• Complex producti on system requires “informal” pr oducti on control

• Process involves nearly 650 transacti ons (informati on and physical )



Handoffs: 650*

Distance

Intra-site: 7353 m*


Fork lift

W eld ing

Queue 1

W eld ing

Robot 2

Weld ing

Robot 2

Spot

Weld

100 Ton 150 TonLVD2

STO PA

ROLLER CONV EYOR

Tool Die

50 Ton

Supervis or

U

80

100

160 T P

RES

S

GUILLOTINE

250 Ton Press

CNC T 260T 260

N

55 TonSmall EPLVD1 P /B

P /B

Fork lift

W eld ing

Queue 1

W eld ing

Robot 2

Weld ing

Robot 2

Spot

Weld

100 Ton 150 TonLVD2

STO PA

ROLLER CONV EYOR

Tool Die

50 Ton

Supervis or

U

80

100

160 T P

RES

S

GUILLOTINE

250 Ton Press

CNC T 260T 260

N


P /B100 Ton 150 Ton

LVD2

STO PA

ROLLER CONV EYOR

Tool Die

50 Ton

Supervis or

U

80

100

160 T P

RES

S

GUILLOTINE

250 Ton Press

CNC T 260T 260

N


P /B LVD2

STO PA

ROLLER CONV EYOR

Tool Die

50 Ton

Supervis orSupervis or

U

80

100

160 T P

RES

S

GUILLOTINE

250 Ton Press

CNC T 260T 260

N


P /B

As-Is Frame To-Be Frame

Machines reduced

from 20 to 12

Effort time reduced by

25%Cycle time reduced by

75%

WIP inventory

reduced by 65%

Reconfigure

Simulation of the reconfigured product value streams highlighted significant performance improvement opportunities

Footprint

reduced 40%


• Lower product cost

• Reduced cycle times

• Reduced working capital

• Increased order delivery performance

• Improved quality

• Less space

• Greater flexibility

• Fewer transactions

In summary, EOE generated significant financial benefits by simultaneously configuring production operations and technology to support flow


Summary Points

• This approach drives substantially more value through the Oracle transformation program

• The approach takes a systematic approach to improvement…focus your energy and resources on the most critical processes and activities

• Incorporation of lean and six sigma in the program supports corporate operational excellence goals and can provide a more strategic alignment between IT and the lean initiative

• A more operationally oriented design reduces risk and increases adoption


Contact

Rajesh Bhageria

[email protected]

513-253-5431

Matt Louis

[email protected]

513 314 9870

For Additional Information


About Deloitte

Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, its member firms, and their respective subsidiaries and affiliates. Deloitte Touche Tohmatsu is an organization of member firms around the world devoted to excellence in providing professional services and advice, focused on client service through a global strategy executed locally in nearly 150 countries. With access to the deep intellectual capital of 120,000 people worldwide, Deloitte delivers services in four professional areas – audit, tax, consulting and financial advisory services – and serves more than one-half of the world’s largest companies, as well as large national enterprises, public institutions, locally important clients, and successful, fast-growing global growth companies. Services are not provided by the Deloitte Touche Tohmatsu Verein, and, for regulatory and other reasons, certain member firms do not provide services in all four professional areas.

As a Swiss Verein (association), neither Deloitte Touche Tohmatsu nor any of its member firms has any liability for each other’s acts or omissions. Each of the member firms is a separate and independent legal entity operating under the names “Deloitte,” “Deloitte & Touche,” “Deloitte Touche Tohmatsu,” or other related names.

In the U.S., Deloitte & Touche USA LLP is the U.S. member firm of Deloitte Touche Tohmatsu and services are provided by the subsidiaries of Deloitte & Touche USA LLP (Deloitte & Touche LLP, Deloitte Consulting LLP, Deloitte Financial Advisory Services LLP, Deloitte Tax LLP and their subsidiaries), and not by Deloitte & Touche USA LLP. The subsidiaries of the U.S. member firm are among the nation’s leading professional services firms, providing audit, tax, consulting and financial advisory services through nearly 30,000 people in more than 80 cities. Known as employers of choice for innovative human resources programs, they are dedicated to helping their clients and their people excel. For more information, please visit the U.S. member firm’s Web site at www.deloitte.com/us.

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