Mansfield LFE ActivityMansfield LFE ActivityMansfield LFE ActivityMansfield LFE ActivitySeptember 5, 2008September 5, 2008

Valve Automation

Company Confidential 4/9/23 / Slide 2

Define the Process Situation Define the Process Situation Define the Process Situation Define the Process Situation Focus is the Rotary Vane Actuators, which comprise 75% of the sales revenue

with orders up 60%. Recently, delivery lead times have been extended to 20 weeks from 16. The

front-end activity comprises about five weeks of the lead time to fulfill the customer order.

Project Managers process purchase orders into shippable product by the cooperative effort with Accounting, Engineering, Procurement, and Production.

Binders with a checklist circulate in a linear fashion among responsible parties. Target dates for customer delivery are based upon available production

capacity and lead time to acquire components. The delivery date drives the schedule for engineering development of the BOM.

Engineering equivalent capacity of 3.2 staff (45% direct time) completes the BOMs necessary to build the products and an attendant set of associate documents are created to ship the products. Recently, Engineering Manager position is open.

Design Complexity ranges lead-time from one to three weeks in Engineering.

Valve Automation

Company Confidential 4/9/23 / Slide 3

Data Analysis Data Analysis Data Analysis Data Analysis 65 orders gathered beginning FY08 P02

to P05 (annual rate 195 orders) Average order has 2 line items Off-shore orders tend to be more

Design Complex

Valve Automation

Company Confidential 4/9/23 / Slide 4

Project Information Effect on Lead-timeProject Information Effect on Lead-timeProject Information Effect on Lead-timeProject Information Effect on Lead-time

Information availability/correctness reduce 1st Pass Yield, which increases rework activity

Valve Automation

Company Confidential 4/9/23 / Slide 5

Effect of Design Complexity on Lead-TimeEffect of Design Complexity on Lead-TimeEffect of Design Complexity on Lead-TimeEffect of Design Complexity on Lead-Time

Type

Range o

f Days

C3C2C1B

80

70

60

50

40

30

20

10

0

77

41.8

20.0811

28.6111

Boxplot of Initial Review to BOM Complete vs Type (Mean Days)

Valve Automation

Company Confidential 4/9/23 / Slide 6

Current Data Control Current Data Control Current Data Control Current Data Control

Valve Automation

Company Confidential 4/9/23 / Slide 7

WorkManager Data Control of WorkManager Data Control of Engineering Worksheets Engineering Worksheets WorkManager Data Control of WorkManager Data Control of Engineering Worksheets Engineering Worksheets

Linear Processing

Valve Automation

Company Confidential 4/9/23 / Slide 8

Time Allocation on Process ChecklistTime Allocation on Process ChecklistTime Allocation on Process ChecklistTime Allocation on Process Checklist

Begin

Target Info Complete

Date11 days

Target Engineering

Due Date30 days

0

5

10

15

20

25

30

35

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27

Days in Process

Sales Order Checklist Steps

Lead Time to Process Sales Order for Production

7 days7 daysTrade ComplianceTrade Compliance

Egr WS Egr WS Initial Info CompleteInitial Info Complete

14 days14 daysConfirm Info Complete Confirm Info Complete

Complete BOMComplete BOMType / Review BOMType / Review BOM

Valve Automation

Company Confidential 4/9/23 / Slide 9

Current State VSM – Order ManagementCurrent State VSM – Order ManagementCurrent State VSM – Order ManagementCurrent State VSM – Order Management

Valve Automation

Company Confidential 4/9/23 / Slide 10

Current State VSM – Order ManagementCurrent State VSM – Order ManagementCurrent State VSM – Order ManagementCurrent State VSM – Order Management

Valve Automation

Company Confidential 4/9/23 / Slide 11

Current State VSM – Order ManagementCurrent State VSM – Order ManagementCurrent State VSM – Order ManagementCurrent State VSM – Order Management

Valve Automation

Company Confidential 4/9/23 / Slide 12

Current State VSM – Order ManagementCurrent State VSM – Order ManagementCurrent State VSM – Order ManagementCurrent State VSM – Order Management

Valve Automation

Company Confidential 4/9/23 / Slide 13

Current State VSM – Order ManagementCurrent State VSM – Order ManagementCurrent State VSM – Order ManagementCurrent State VSM – Order Management

Valve Automation

Company Confidential 4/9/23 / Slide 14

Current State VSM – Order ManagementCurrent State VSM – Order ManagementCurrent State VSM – Order ManagementCurrent State VSM – Order Management

Valve Automation

Company Confidential 4/9/23 / Slide 15

Current State VSM – Binder FlowCurrent State VSM – Binder FlowCurrent State VSM – Binder FlowCurrent State VSM – Binder Flow

Valve Automation

Company Confidential 4/9/23 / Slide 16

Waste Reduction OpportunitiesWaste Reduction OpportunitiesWaste Reduction OpportunitiesWaste Reduction Opportunities More effort up front before order is accepted

– Engineering requests further updates after PM assumes sufficient information has been completed

Reduce waiting time between steps– ~33% Lead-time is Wait Time (Waste)

Clear tracking of binder locations/status– 6 to 20 binders at a time in Sales offices– 2 to 4 binders at a time in Engineer’s office

Reduce time between QA review until BOM complete Set Target Performance, make performance visible, and

countermeasure gaps Capture initialization dates and assign tracking control Reduce process variation within certain steps

Valve Automation

Company Confidential 4/9/23 / Slide 17

Near-term Incremental ActionsNear-term Incremental ActionsNear-term Incremental ActionsNear-term Incremental Actions• Determine required start date of Engineering effort based on

Design Complexity and initial checklist preparation lead time

• Broadcast Engineering Due Date using Outlook Meeting manager

• Define gate target dates to measure actual performance dates

• Developed model for visual presentation of real-time data for actual performance to gate targets highlighted with the need by red/yellow for immediate action

• Electronically track Binders with a self-check in/out tracking system, capture initialization and transfer dates

Valve Automation

Company Confidential 4/9/23 / Slide 18

Respond to TargetsRespond to TargetsRespond to TargetsRespond to TargetsCapture the START DATE when the Capture the START DATE when the customer quote is issued as a PO. customer quote is issued as a PO. Set PRELIMINARY Target Dates that Set PRELIMINARY Target Dates that

are revised as more information are revised as more information becomes available.becomes available.

Valve Automation

Company Confidential 4/9/23 / Slide 19

Project ControlProject ControlProject ControlProject Control

Valve Automation

Company Confidential 4/9/23 / Slide 20

Project ControlProject ControlProject ControlProject Control

Workflow & Project TrackingWorkflow & Project Tracking

Information Processing Information Processing

FILECODERFILECODER

ORACLEORACLE

Scanned barcode in binder Scanned barcode in binder will enter data into fieldwill enter data into field

Data may be COPY/PASTE into any MS-application (Excel, Word, Access)

Trace user who performed the transaction

Valve Automation

Company Confidential 4/9/23 / Slide 23

Long-term Actions (proposed timeline)Long-term Actions (proposed timeline)Long-term Actions (proposed timeline)Long-term Actions (proposed timeline)ID Task Name

2008

Q3Q3

1Develop consensus Future State VSM uniform among all VA sites. Determine KAIZEN Activity

12

Apply eDOCS to eliminate physical binders (use parallel processing), retain scanned documents, and promote workflow. Move to parallel processing since data can be shared and reconciled. Link to ORACLE.

Review office architecture/layout for teaming activity

Expand Engineering capacity to replace retiring staff. Increase direct time on Order Management activity by providing separate production support.

Develop a policy to assure complete design information sooner from customer or jog project date until it becomes available, which delays delivery date.

Automate repetitive predetermined activities for discounting, Import/Export, and taxing

Train and enforce Request and Promise date application

Define start date, target dates and policy to address performance gaps.

Q4

2010

Q2Q1

2009

Q4Q2Q1

11Integrate ORACLE data to monitor Order Management and product configuration capability

6Lean Office Training (5s, 8 Waste, Visual Factory Management, VSM Familiarization, Standard Work)

8Begin Lean Office Assessment incorporate with shopfloor assessment for site rating.

Apply Binder Tracking system (sequential/serial process) using barcodes and software application. Enhance Visual reports using software reports.

2

7

4

3

9

10

5