Parker Hannifin Hydraulic Filter Division Metamora, Ohio AME

Parker Hannifin Hydraulic Filter Division Metamora, Ohio AME Presentation 11-18-2010 Hydraulic Filter Division Metamora, Ohio Division of Parker Hannifins Filtration Group Since early 1970s

107,500 sq. ft. ISO 9001 Certified 2 Product Range Pressure Filters 3000-6000 psi 18/28/38P Medium Pressure 15/30P

CN Series 1000-3000 psi 50P IL8 Series Low Pressure 100-500 psi

3 Spin-ons Moduflow KLS/KLT HFD Main Asset The employees Monthly Plant Meetings 4

Division Staff Focus of Presentation A. Two Best Practices (Things the Parker Hydraulic Filter Division has done well) B. Two Lessons Learned / Opportunities C. The Value of applying for the AME Award 5 A. Two Things We Now Do Well

1. Converted a no-flow, no-visual management, massive warehouse, all 7 forms of waste facility into a Lean continuous improvement facility with a Supermarket in an open visual plant with uninterrupted flow. 2. Instilled a Lean culture of employee empowerment. 6 HFD Lean Journey History Started with Parker Filtration Group Lean kickoff

February 2002 in Ypsilanti Michigan Had to overcome the Were Different (high-mix) mind set 1+ Kaizen events per month for first 3 years 50+ events Gradually changed culture Work with Lean Senseis in beginning Three Major Site Plan Phases (now phase 4) Continuous Improvement 7

Warehouse Before: Vast Massive Storage Hid Problems 8 Before: Central Wall & Mezzanine Impeded Flow & Hid Material 9 Assembly Before:

10 Mezzanine & Central Wall Coming Down: 11 Supermarket Instead of Warehouse 12 Receiving After

13 14 PFEP & Making Material Flow @ HFD

15 BEFORE Massive random storage W/H Central mezzanine/wall blocked flow Inventory Turns < 3

150 tall racks Lost parts regularly 1200 ft travel & handle 20 times 12 recorded accidents All 7 forms of Waste No Supplier Kanbans Annual Inventory took 3+ days No 5Ss

AFTER Supermarket, PFEP, Supplier Kanbans, Water-spider Inventory Turns 11

Open visual management Travel & Handling reduced 85% Eliminated 150 tall racks Freed up 5000 sq ft Safety recorded accidents reduced 83% Surplus two fork lifts Annual Inventory now 1 day 5S Everywhere Instilling Employee Empowerment Training Teams

16

Kaizen VS 5S HPWT 10X10 All Hands On Deck Commitment Communication Celebrations

A Few HFD Initiatives 5S Golden Broom & Golden Duster 10 X 10 teams Lean Training All Employees trained on Basic Problem Solving Lean Boot Camps rolled out

17 Lean Work Shop Monthly Plant Meetings Quarterly News Letter Forklift Free Production Areas Safety Cook Outs Safety Suggestion Program On Site Physicians Assistant

18 Parkers Lean Tracking System The Boards Tell HFDs Story 19 A Few of the Results

20 Lost Time Accidents at 0 72% Reduction in Scrap WIP Reduction of 75% Inventory Returns Improved by 270% Productivity Improved by 115% Celebrate

21 Lean Celebration 22 Lessons Learned Lean must be treated as a complete continuous improvement process and not just pick and choose a few Lean tools. The Lean journey must lead to true culture change with

employee empowerment if you want it to stick. Lean can work for high mix operations tooit takes that extra effort. Positive peer pressure can be an effective tool. Opportunities Inventory Turns can improve more to high double digits Careful not to become complacent 23 Value of Applying for AME Award Benchmark to peers

Challenge: Writing a summary of your Lean Journey gives you a great perspective as to how far your company has come and what is still left to be done. Very professional volunteer examiners will give you honest feedback, including suggested opportunities for improvements. A good indicator of Lean progress No Fees Good Company / Division PR 24

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