NTS Proprietary

Supplier Excellence Alliance (SEA)Process Owner Forum

3.1.1 - Kaizen

Presented by: Dan Cannondan.cannon@ntscorp.com

781-439-5723

October 11, 2010

NTS Proprietary

About NTS

A leading provider of Integrated Engineering and

Testing Services

Founded in 1961

20+ Engineering Offices & Test Facilities (Arkansas, Arizona, Calgary, California, Colorado, Kansas, Massachusetts, Michigan, New Jersey, Virginia)

Approx. 700+ Full Time Employees, 150 Project Employees

www.ntscorp.com

Distinguishing characteristics related to SEA:– Service Organization– Enterprise-wide approach

We continuously strive to make the execution of strategy a core competency– Core Values– Balanced Scorecard– PIPELine Process (SEA)

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NTS Proprietary 3Acceleration

Thermal Vacuum Chamber

Vibration

CapabilitiesCapabilities

NTS Proprietary 4

EMC/EMI Testing

Thermal Testing

Shock Testing

CapabilitiesCapabilities

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Why SEA for NTS

A lean enterprise eliminates waste throughout the value streams by applying the philosophy & techniques of lean process

The goals: » On-time Delivery » Excellent & Consistent Quality» Cost Containment & Cost Reduction

A culture where all employees work toward:» Customer Satisfaction» Lean and other organizational goals» Continuously improving personal and team skills

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NTS Proprietary 6

Our Core Values determine how we develop our culture,

brand and business strategies: Organizational Integrity - we inspire honest and respectful interactions

Respect for the Individual – we value initiative, understanding, ethical behavior

Quality Customer Service – foster loyalty and respect

Stewardship – “Obligations to Stakeholders”- properly utilize & develop resources

Embrace & Drive Change - continuous process improvement

The Best People Make the Best Teams- attract, retain, develop talent

Personal & Organizational Growth- challenge and stretch ourselves

One Enterprise- leverage our service, capabilities and relationships

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NTS Core Values

NTS Proprietary 77

NTS Strategy Map

3.1.1 Kaizen Process

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SEA Roadmap

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Leadership & Culture Processes

9

Plan

Do

Check

Act

3.1.1 Kaizen Process

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SEA Kaizen Criteria

How does your organization set and review priorities for Kaizen events?

How is recognition for team members provided and who is involved?

How are lessons learned shared with others who can benefit?

How are process improvements documented and deployed to others using the same or similar processes?

How are internal Kaizen leaders developed and deployed?

How are goals set for Kaizen leadership and how is progress monitored?

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3.1.1 Kaizen Process

NTS Proprietary

SIPOC

Suppliers: Inputs Process Output

Exec Team: Corporate Strategy Map / BSC

Process Mapping Future State Process Maps / SOPs

Process Champ.: Team Charter

Implementation Leaned Process

Leadership Team: Metrics

Training Training Materials / Trained Staff

Process Owner: Current State Process Maps

Recognition Improved Metrics

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Continuous Improvement – PIPE Line

Champion identifies Process

OwnerPO Trained?

Train PO

PO & Champion create Team

Charter

Exec Team member

approved?

PO holds team kick-off meeting

Team completes Process

WorksheetExec Team Approval?

Current State Process Mapping

(multiple)

Standardized Enterprise

Process Mapping

Future State Enterprise

Process Mapping

Champion, Exec team, or LT identifies

improvement need

Identify Team roles

Draft SOP

Create Training Plan

Master Trainer creates Training

material incl. Test, presentations,

etc.

Leadership Team comment period (2

weeks)

Team addresses comments & revise SOP &

training

Ballot Approval?M.T. executes Training Plan

Team & NTS Quality create

enterprise audit plan

Conduct & document audits

CPARs ?

Complete CPAR & revise SOP &

training plan

Identify Cross-functional Team & ID

Master Trainer

Master Trainer trained?

Train MT

Continue to PM-4

Enterprise Audit Report approved by Dir. Operational

Excellence?

Team conducts Supplier Input

survey

Team conducts Customer

Requirements validation

Team conducts User Feedback

survey

No No

No

No

No

No

Yes Yes

Yes

Yes

YesYes

Yes

PM-0

PM-1

PM-2

PM-3

No

3.1.1 Kaizen Process

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Feedback

Collect feedback and improve process

Setup Preparation

Process Owner or Kaizen Leader collects datafrom work area related toupcoming Kaizen event

Kaizen Leader confirmsobjectives with Process Owner and Champion

Resources are requested and approved byChampion and facility/group directors

Kaizen event schedule is setwith specific daily action plans

Corporate Strategy MapBalanced ScorecardValue Stream MapsAnnual Imp. Plan

Process Owner assigned to initiate PIPELine team

PIPELine Team objectives set via Team Charter and linked to Annual Improvement Plan

Process Owner determines Kaizen tool appropriate

Kaizen Objectives set and linked to PIPELine Team charter

Conduct training

Assign action plans

Daily report outs

Pilot run if applicable

Create new standard work and training

Prepare report out

Present results at quarterly Leadership Team meeting

Area

s Ad

dres

sed

Post Event

Manage event and Leadership Team meeting follow-up

Process Maturity Level 2 Gate Review

Event

3.1.1 Kaizen Process

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Virtual Kaizen Process

NTS enterprise-wide implementation of lean principles

Service organization – very few cells or factories

Leveraging video/teleconference meeting technology

Incremental working meetings rather than start to finish event

Structured milestones and goals for each meeting

Action items and homework assignments between meetings

Collaboration website to post and share results

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What makes it virtual ?

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Process Mapping Example via Virtual Kaizen

Welcome Screen: select appropriate

Group & Right Click on Quote & Job

Mainenance

Customer Selection Screen: Click on

Jump to Quote/MJO

At Quote Maintenance

Screen: Click on Convert/Link to MJO

MJO Attached to Quote Screen: Click on “Add

New”

PO Order Entry Screen: Fill in the following fields: Pre-Assigned MJO #

Purchase Order # Customer PO Value Customer PO order date & PO Receive

Date (PO Value will automatically populate based on Quote Value

(change value if different)

PO Order Entry Screen: begin entry of Line

Items

PO Order Entry Screen: Enter line # /quantity/testdescription and cost for

each line of purchase order

PO Order Entry Screen: Confirm that PO Value

entered matches final total

Billing Customer Selections screen: Select your Billing

Address

MJO Information Screen: Enter Data into the following fields: Job Name

Description CSA Program ManagerContract Review Contract Review Date

Contract Type Scheduled start date (if known)

MJO Information Screen: Click on Report And select type

of data/report ordered

MJO Information Screen: Click on

Inspected tab check who will be

doing the test inspection

Save your work

MJO Information Screen: Click on Test Specifications: On this page Type in the following: Customer name/po#/po value and date of po NTS Quotation number and date List the name of the Test Specification Rev and Date Document any

drawings or other pertinent information related to the program then hit update to save and return.

MJO Information Screen: Click on Test Items and fill in the following fields:

Description of Unit (unit name, if available) Part Number (if available) Serial number (if available)

Quantity (if available)Condition (if available)

Shipping info (if available)

At the Customer Test Items screen : If completed entering test items hit

“Return”

At the Customer Test Items screen: If additional test items

to be entered click on add new and repeat previous step

MJO Information Screen: Click on special instructions (lab specific notes) then hit

Update to save and return

Data Entry is completeHit Save & Return

PO Order Entry Screen: If PO total

and final total match,

Hit Update

PO Order Entry Screen: After all purchase order

lines have been entered hit “Calculate”

At the “Enter Quote # or MJO# “: Enter

the suffix of the quotation number

MJO Information

Screen: Click on Gov’t Contract

populate if note

MJO Information

Screen: Select Main &

Secondary Contacts

Order Entry Process

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Kaizen Example for Order Entry Screen

Order Entry Process

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Collaboration Website

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Training Plan Example for Order Entry Kaizen

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Questions?

Dan Cannondan.cannon@ntscorp.com781-439-5723www.ntscorp.com

THANK YOU!