This document provides an overview of Donnelly Corporation's continuous improvement process using lean principles. [1] It describes Donnelly's journey from a small startup to a large successful manufacturer through strategic expansions and implementing lean tools like visual management, daily war room meetings, extensive training programs, and a structured approach to mistake-proofing. [2] Key metrics like on-time delivery, value-added per employee, and scrap levels improved significantly through this process. [3] Donnelly's lean approach focuses on eliminating waste and variability to achieve operational excellence in high-complexity short-run production.
2. Agenda
• Donnelly & the Short Run Challenge
• Business Results
• Our Continuous Improvement Process:
Lean in the Short Run
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3. Donnelly Story Challenges Results TWI Mistake-proofing
The Donnelly Story
• Donnelly was founded in 1984
• A small, one-story building
• Four presses, eight people, no customers
-
• An idea to focus on short run, close tolerance parts
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4. Donnelly Story Challenges Results TWI Mistake-proofing
The Donnelly Story
• Today, the organization is over 225 people strong
- Best-in-class technologies and quality systems
- 24/7 Operations, 125,000 square foot facility with
33 presses
- 700+ Materials used
- 2500+ active molds 3000+ active parts
- 40-50 changeovers per day; median 8-hour run
- Industry-leading and world-renowned OEM customers
- - $29+ Million in Revenues
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6. The Cos m ic Law Of Nature
g
s s in
e
o gr
Pr
Nothing is Static
Re
g re
ssi
ng
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7. Donnelly Story Challenges Results TWI Mistake-proofing
The Donnelly Story
Brief overview of Donnelly’s Journey
• 1991 – Completed 25,000 sq ft expansion
• 1991 – Establish internal training process & sales strategy
• 1993 – Expand value-added services & leadership training
• 1994 – Incorporated TOC in our operations
• 1995 – Completed 5,000 sq ft expansion
• 1996 – Attained ISO 9001 Certification
• 1996 – Completed 36,000 sq ft expansion
• 1997 – Implemented the War-Room Concept
• 1998 – Focused our selling on industrial OEM’s
-
• 1999 – Implemented a new Manufacturing Launch Process
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8. Donnelly Story Challenges Results TWI Mistake-proofing
The Donnelly Story
Brief overview of Donnelly’s Journey (Continued)
• 2000 – Discipline of Market Leadership in Customer Intimacy
• 2001 – Initiated a Customer Qualification Process
• 2002 – Marketing Communications and Formalized Sales Process
• 2003 – Adopted the principles of Lean Manufacturing
• 2004 – Used Strategic process outlined in “Good to Great”
• 2005 – Added Training Within Industry component to Lean Mfg.
• 2005 – Developed the process for finding “bulls-eye” customers
• Developed Industry/Product & Customer Profiles (filters)
• Set process for mining companies with selected products
• 2006 – Completed a 19,500 sq ft expansion
-
• 2007 – Attained ISO 13485 certification
8 • 2007 – Finalist – Plastics News Processor of the Year
9. 42 million
Donnelly Story Challenges Results TWI Mistake-proofing
The Complexity Factor
7,000,000
Complexity Factor = Active Molds
6,000,000 x Materials Used x Presses
5,000,000
Comparative Data:
4,000,000 Plante Moran’s 2004
North American
3,000,000 Study of the Plastic
Molding Industry
2,000,000
1,000,000
0
Over 50%
Over 25%
Automotive
Donnelly
Over $25MM in
Participating
Injection
Molding
Companies
Over 25%
Medical
sales
All
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10. Donnelly Story Challenges Results TWI Mistake-proofing
Addressing the Complexity Factor
• Process orientation with measurements • Peer Accountability
- Manufacturing Launch (40 measures) - Production War Room
- Critical Success Factors (12 key - Visual Management
measures)
Complexity
• Constancy of purpose • Attention to detail
- Short Run - Checklists
- Quality Management System (incl. MRT) - Supervisor audits
- Lean Manufacturing Techniques - Team Leader audits
- Training
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11. Agenda
• Donnelly & the Short Run Challenge
• Business Results
• Our Continuous Improvement Process:
Lean in the Short Run
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16. Donnelly Story Challenges Results TWI Mistake-proofing
Scrap value Scrap History Scrap$/prod'n$
at std cost at std cost
$1,400,000 9.0%
$1,200,000 8.0%
7.0%
$1,000,000
6.0%
$800,000 5.0% $
$600,000 2008 Goal = < 4.5% 4.0% %
3.0%
$400,000
2.0%
$200,000 1.0%
$0 0.0%
2005 2006 2007 2008(proj)
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17. Agenda
• Donnelly & the Short Run Challenge
• Business Results
• Our Continuous Improvement Process:
Lean in the Short Run
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18. Components of Continuous
Improvement
• Quality System
• Daily War Room Meetings
• Visual Management – beyond 5S
• Lean Events – at least 9 per year
• Technical Training
• Leadership Training
• Training Within Industry
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19. Donnelly Quality System
Deliver Good Products On
Time
Management Review Team
Corrective Action Process
RCA What other
Why was the parts might
ISO 9001:2000 ISO 13485:2003 defective part have this
produced? same issue?
Why was the
defective part
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shipped?
20. Daily War Room Meetings
Review last 24 hrs Look ahead to the next 24 hrs
• Safety • Set Priorities
• Changeovers & efficiency
• “At Risk” shipments
• Hours Run & efficiency
• Down Time • High scrap jobs
• Scrap • Mold issues
• Problem Jobs
• Action items
• This is a problem identification, not problem solving meeting
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• Action items assigned with peer accountability to resolve them
within 48 hrs
22. Press Visual Management
Large press group
• Blue light (flashing): Waters
not running
• White light (flashing): Barrel
temps left on
• Red: “Must run” press
• Green: “Needs to run” press
• Yellow: “Should run” press
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23. 5S Audit Process
• Next shift Team Leader audits
section w/current shift Team
Leader
• Record results on current shift
schedule showing assignments
• Highlight in green if OK; pink if a
problem with
notes at bottom
• Hang schedule
on current shift
clipboard for
Supervisor to
review
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24. Certified Molding Operator
Training
• Must apply
• 16-18 classes
• Mix of classroom &
hands-on training
• Final written test
• Must pass muster
by doing most
complex mold
changeovers
within standard
• Pass and receive
raise, bonus,
plaque, CMO shirt
• CMOs fill many
24 other positions
25. Training
Within Industry
• Training for those who direct the
work of others (supervisor)
• “The Foundation of Lean”
• Three Key Elements or Skills
- Job Relations: get results by
gaining cooperation of others
- Job Instruction: efficiently and
effectively train others
- Job Methods: generate & imple-
ment ideas for improving the work
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26. Donnelly Story Challenges Results TWI Mistake-proofing
Training Within Industry structure
• Training in 2-hour blocks for 4-5 days
• Small classes of 8-10 people
• Demonstrate, then learn by doing – learn from
each other
• Identify and solve today’s real problems
during the training
• Focus on areas within your control
• Learn how to implement your ideas – SAUC
• Pocket-sized reminder card
TWI is a proven method of providing relevant solutions to today’s real problems
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29. Donnelly Story Challenges Results TWI Mistake-proofing
Structured Approach to Mistake-
proofing
• What went wrong – what mistake was made?
• Identify the root cause(s)
- Has the job been simplified using Job Methods?
- Was Job Instruction used to train effectively?
• Develop the best solution
- Consider cost versus risk
- Is the right way the easy way?
• Apply the solution
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Is the risk reduced?
30. Mistake-proofing & Core Values
- Do your best
• Eliminate barriers like mistakes so we can take
pride in what we do
- Treat others the way you want to be
treated
• With respect for the human condition
- Don’t be afraid to ask for help
• Identify mistakes and work with others to
discover the root cause
- Always work as a team
• Mistake-proofing builds teamwork
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31. Donnelly Story Challenges Results TWI Mistake-proofing
What it’s really all about...
• Believe in something
bigger than ourselves
• Believe in the company,
its leadership, values,
vision and mission; and
our products and services
• Eliminating motivational
inhibitors – like making
mistakes
True Compensation
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