Parker Hannifin Hydraulic Filter Division

Metamora, OhioAME Presentation 11-18-2010

Presented By: Tom Albaugh

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• Metamora, Ohio

• Division of Parker • Hannifin’s Filtration Group

• Since early 1970’s

• 107,500 sq. ft.

• ISO 9001 Certified

Hydraulic Filter Division

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Product Range

• Pressure Filters • 3000-6000 psi

• Medium Pressure • 1000-3000 psi

• Low Pressure • 100-500 psi

18/28/38P 15/30P 50P

Spin-onsModuflow

CNSeries

IL8Series

KLS/KLT

HFD Main Asset – The employees

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Monthly Plant Meetings 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

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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.

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HFD Lean Journey History

• Started with Parker Filtration Group Lean kickoff February 2002 in Ypsilanti Michigan

• Had to overcome the ‘We’re Different’ (high-mix) mind set

• 1+ Kaizen events per month for first 3 years• 50+ events• Gradually changed culture

• Work with Lean Sensei’s in beginning • Three Major Site Plan Phases (now phase 4)• Continuous Improvement

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Vast Massive Storage Hid Problems

Warehouse Before:

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Before: Central Wall & Mezzanine Impeded Flow & Hid Material

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Assembly Before:

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Mezzanine & Central Wall Coming Down:

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Supermarket Instead of Warehouse

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Receiving After

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BEFOREBEFORE AFTERAFTER• 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 5S’s

• 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

PFEP & Making Material Flow @ HFD

Instilling Employee Empowerment• Training• Teams

• Kaizen• VS• 5S• HPWT• 10X10

• All Hands On Deck• Commitment• Communication• Celebrations

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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

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

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Parker’s Lean Tracking SystemThe Boards Tell HFD’s Story

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A Few of the Results

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

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Celebrate

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Lean Celebration

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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 too—it takes that extra effort.

• Positive peer pressure can be an effective tool.

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Opportunities• Inventory Turns can improve more to high double digits• Careful not to become complacent

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

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