Six Sigma at CintasSix Sigma at Cintas

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• Who is Cintas?

• Six Sigma Deployment & Key

Elements

• Case Studies

• Sustainability

Six Sigma - OutlineSix Sigma - Outline

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- Over 273 Cintas Operations acrossNorth America- Over 27,000 partners

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First Aid and SafetyFirst Aid and Safety

Rental Uniform ProgramsRental Uniform Programs

CatalogCatalog

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Fiscal year 2004 was our 35th consecutive year of uninterrupted growth in sales and profits through all economic cycles. In the last four years we have acquired over 85 companies Annual sales over $2.8 Billion

Cintas Principle Objective StatementCintas Principle Objective Statement

““To maximize the long-term value of To maximize the long-term value of Cintas for its shareholders and working Cintas for its shareholders and working partners by exceeding our customers’ partners by exceeding our customers’

expectations”expectations”

Best Value PropositionBest Value Proposition

DELIVERY/CYCLE TIME

COST

QUALITY, REVENUES & CUSTOMER SATISFACTION

DRIVE DOWNDRIVE DOWN

PRODUCE WORLD CLASS QUALITY

MAXIMIZE ENTITLED REVENUE

EXCEED CUSTOMER EXPECTATIONS

DRIVE UP

Six Sigma at Cintas - OverviewSix Sigma at Cintas - Overview

• First pilot project started October 2001

• Three Divisions: - National Account Sales Division - Distribution/ Production Planning- Manufacturing & Logistics

• 18 Black Belts – full-time

Six Sigma Results Six Sigma Results

KPIKPI FY02FY02 FY04FY04

TurnoverTurnover 38%38% 15%15%

CSICSI 55%55% 74%74%

Back ordersBack orders 150,000/day150,000/day 30,000/day30,000/day

Inventory Inventory Reduction Reduction $40 million$40 million

Distribution/Production PlanningDistribution/Production Planning

Six Sigma at Cintas - OverviewSix Sigma at Cintas - Overview

• October ’02 management decision- Six Sigma pilot was deemed successful- Plan to rollout company wide in ‘03

• Marketing• Management Information Systems• Finance/Accounting• Research & Development• Rental Operations – Central Group• First Aid & Safety

Six Sigma at Cintas Six Sigma at Cintas

• 24 Black Belts certified in May ’04

• Deploy Six Sigma across the Rental Operating Division (22,000 employees): Jun ’04

• 38 Black Belts, Wave 3 – started Sep ’04

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““I feel this will be one of the most important, I feel this will be one of the most important, long lasting initiatives our company has ever long lasting initiatives our company has ever undertaken...”undertaken...”

- SCOTT FARMER- SCOTT FARMER CEO, CintasCEO, Cintas

Six Sigma Initiative at CintasSix Sigma Initiative at Cintas

Green Belts

Master Black BeltsCo-Champions

Champions

ExecutiveChampion

Frontline Partners

Black Belts

• Owns the vision, direction, integration, results

• Supports Six Sigma

by participating on project

teams and leading CDMS

• Train and coach Black Belts, Green

Belts and give guidance to Co-

Champion and Champions

• Align with business strategies

• Execute vision set by Champions

• Identify human resources• Identify and Scope projects

• Set Divisional vision

• Identify and scope

projects

• Identify, coach and develop BBs and MBBs

• Provides day-to-day management and direction of Six Sigma program

• Leads change for Cintas

Cintas Six Sigma – Led from the topCintas Six Sigma – Led from the top

• Apply Six Sigma toolsto specific projects, lead

and direct teamto execute

projects

CEOCorp ESC

•Ideas, quick hits

Local ESC leaders

• Identify projects• Ensure implementation

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Key Elements of Six Sigma Key Elements of Six Sigma

at Cintasat Cintas

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Key Elements of Six Sigma at CintasKey Elements of Six Sigma at Cintas

1. Structure: Executive Steering Committees

- Identify, review and prioritize Six Sigma projects

- Provide required resources and training (MBB, BB, GB)

- Implement Six Sigma policies and procedures

- Measurement of results

2. Six Sigma Projects - Traditional Six Sigma (in depth / longer term projects) - Lean (eliminate waste / reduce setup / reduce costs)

3. Sustainability & Frontline Involvement Cintas Daily Management System (CDMS)

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Executive Steering Committee - CharterExecutive Steering Committee - Charter

The ESC, responsible for establishing & guidingThe ESC, responsible for establishing & guiding

• Change ManagementChange Management

• Staffing & TrainingStaffing & Training

• Policies & ProceduresPolicies & Procedures

• Measurement of ResultsMeasurement of Results

The ESC isn’t a “Staff Meeting”, it’s a Change The ESC isn’t a “Staff Meeting”, it’s a Change Management leadership teamManagement leadership team

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Cintas Executive Steering Committee StructureCintas Executive Steering Committee Structure

Corporate Executive Steering Committee

Division Level Executive Steering Committee

Site Executive Steering Committee

Site Level Work Groups

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Six Sigma Project SelectionSix Sigma Project Selection

Voice of the Business

Voice of the Customer

Voice of the Partner

Voice of the Process

Voice of the Partner

Prioritized Projects

111

3

2

Project Prioritization

Matrix

Issues/

Project Ideas

Full Automation

Awareness

Fail-Proof

Simplification

Training

• No Manual Intervention

• Notification, “big stick”

• Certification and Audits

• Eliminate Activity

• Impossible to Fail

Behavior typically

reverts back to defects

If behavior cannot be changed,

change the process that the behavior

follows

Most Desired

Least Desired

Searching for SolutionsSearching for Solutions

Daily Mgt Systems/ • Defect feedback/visibility

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Key Elements of Six Sigma at CintasKey Elements of Six Sigma at Cintas

1. Structure: Executive Steering Committees

- Identify, review and prioritize Six Sigma projects

- Provide required resources and training (MBB, BB, GB)

- Implement Six Sigma policies and procedures

- Measurement of results

2. Six Sigma Projects - Traditional Six Sigma (in depth / longer term projects) - Lean (eliminate waste / reduce setup / reduce costs)

3. Sustainability & Frontline Involvement Cintas Daily Management System (CDMS)

TRADITIONAL LEANTRADITIONAL LEAN

• Quick hits

• Visual, intuitive tools - Process map - Value stream map - Spaghetti map - Fishbone diagram - Pareto - Control charts

TRADITIONAL SIX SIGMATRADITIONAL SIX SIGMA

• Deep dive / discover critical X

- Simulation

- Statistical analysis (ANOVA, T-test)

- Design of Experiments

Six Sigma Projects at CintasSix Sigma Projects at Cintas

Combining Lean and Six SigmaCombining Lean and Six Sigma

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Lean Project #1Lean Project #1

Reduce Linen Expense Reduce Linen Expense

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Lean Project SummaryLean Project Summary

Current Performance

Achieve Project Goals

Immediate impact plans

Sustainability plans

1. Update/Modify Master Crewing Guide

2. Hire and train 5-6 for 1st shift, 4-5 for 2nd shift

3. Hire and train 2 supervisors

4. Develop leadership startup meetings

5. Focus on elimination of backlog

6. Use partner productivity data

• Address Critical Components (team identified 15, chose top 5)

a) Processing time

b) Scrap rate

c) Inventory control

d) Credits/LRs/Pricing

e) Training

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Reduce Linen ExpenseReduce Linen Expenseproject slides to be displayedproject slides to be displayed

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Lean Project #2: Lean Project #2:

Decrease Returns Department Decrease Returns Department Processing TimeProcessing Time

Returns Project: Before

Liq

Damaged

Mono

Rebox

Garbage

HoldsStorage

Staged Work

TailoredGarments

TailoredGarments

Liq

Damaged

Mono

Rebox

Garbage

HoldsStorage

Staged Work

TailoredGarments

TailoredGarments

Returns Project: After

1

2

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Additional Returns Department Additional Returns Department project slides to be displayedproject slides to be displayed

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Lean Project #3: Lean Project #3:

Decrease Digitized Logo Decrease Digitized Logo Processing Time & ExpenseProcessing Time & Expense

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Digitized Logo Project

31

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Additional Digitized Logo Additional Digitized Logo project slides to be displayedproject slides to be displayed

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Key Elements of Six Sigma at CintasKey Elements of Six Sigma at Cintas

1. Six Sigma Projects - In depth / longer term projects - Lean (eliminate waste / reduce setup / reduce costs) - Quick hit (blitzes)

2. Structure: Executive Steering Committees

- Identify and review Six Sigma projects

- Provide required resources and training (MBB, BB, GB)

- Implement Six Sigma policies and procedures

3. Sustainability & Frontline Involvement Cintas Daily Management System (CDMS)

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The Five Components of the CDMSThe Five Components of the CDMS

1. A daily work group* Shift Start-up (SSU) meeting.

2. A work group* Primary Visual Display (PVD).

3. A Kaizen Action Sheet (KAS) improvement system.

4. A KCG 20 Keys assessment and improvement plan.

5. Detailed micro-process metrics tracking on a daily and weekly basis.

* An intact work group (of no more than nine people) works in close proximity for most of the time and has a process or functional connection that tends to pull its members together.

Each intact work group* of no more than nine people must maintain:

Contribution: KCG, Kauffman Consulting GroupContribution: KCG, Kauffman Consulting Group

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Shift Startup Meetings are a daily forum for communicating and sharing information & sustaining the gains

Shift Start-Up MeetingsShift Start-Up Meetings

• A 5-10 minute planned daily meeting with a workgroup

• A consistent approach to communication

• A means of expediting the sharing of information

• A discipline that helps to drive over communication

• A focal point for updating or showing updates to a workgroup’s Visual Display Board

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Work Group Primary Visual DisplayWork Group Primary Visual Display

PVDs Typically Display:

- Key Performance Indicators

- Kaizen Action Sheet Status

- Core Performance Review

- Customer feedback

- Six Sigma projects

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Area Top Issues:

•Efficiency Improvement•Scrap Reduction•Kaizen Improvements•Cleaning and Organizing

Visual Attendance

LarryChuckKathyJoeJim

August

1 2 3 4 5 6 7 8 9 10 11 12 13 ....

QualityProductivity

KaizenSkills Flexibility

LarryChuckKathyJoeJim

Skills Flex %

OperationalMechanical

Lost Time

Action Sheets

To Do’s

Service

20 Keys of Lean Mfg

012345

1 2 3 4 5 6 7

Before: After:

Housekeeping Audit Results and Examples

1. 4

2 5

3. 3

50

70

90

110

1 2 3 4 5 6 7

50

70

90

110

1 2 3 4 5 6 7

50

70

90

110

1 2 3 4 5 6 70

20406080

100

1 2 3 4 5 6 7

020406080

100

1 2 3 4 5 6 7

PVD ExamplePVD Example

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Kaizen Action SheetsKaizen Action Sheets

• As operational problems are identified and performance awareness/interest increases, employee involvement must become more structured

• Kaizen Action Sheets (KAS) provide a system to capture, submit and manage improvement ideas so that performance improvements can be made