The Foundation for Continuous

Improvement:

The Purpose of Pillars

Milliken Performance System

Safety

• Safety is the foundation of the performance system that engages all associates in the uncompromising pursuit of zero incidents.

What

• Foundation that signals the individuals’ personal well-being comes first, and from there creates the elements for a high performance work environment.

Role in the System

• All associates

Who

• Zero incidents, high morale, 100% associate engagement, trust between associates and management

Deliverables How

• Total associate ownership

• Hazards, risks identified

• Steering committees

• Sub-committees

• Use of continuous improvement tools and methods

• Management as a resource and coach

Daily Team Maintenance

• DTM provides operators with the knowledge and skills required to proactively prevent breakdowns and waste caused by accelerated equipment deterioration and abnormalities.

What

• Improved reliability and stability, setting foundation for other pillar improvements

Role in the System

• Operators, technicians, maintenance, production leadership

Who

• Reduction in minor stops, breakdowns, changeover time

DeliverablesHow

• 0: Prepare for Restoration

• 1: Restore, Inspect, Understand

• 2: Identify Deterioration & Implement Solutions

• 3: Establish Cleaning & Lubrication Standards

• 4: Train Operators to Detect/Correct Abnormalities

• 5: Apply Practical Application of Methods

• 6: Standardize DTM Throughout the Location

• 7: Continuously Improve the Process

5S

• Process used to organize and maintain the workplace environment in order to improve efficiency and safety, reduce waste, and eliminate non-value added activities.

What

• Foundational process which establishes the expectations of discipline and overall engagement

Role in the System

• All associates

Who

• Improved safety, reduction in non-value added activities

DeliverablesHow

•Model areas

•Separate

•Simplify

•Systematize

•Standardize

•Sustain

Continuous Skills Development

• A standardized training process to ensure our associates are doing things the right things, the right way, every single time.

What

• Decrease variation within the production systems attributed to training opportunities

Role in the System

• All associates

Who

• Reduction in process variation, turnover, and overall training spend

Deliverables How

• Model areas

• Skills element tree

• Skills assessment

• Associate certification

• Re-training process

• Individual performance measurement

Focused Improvement

• FI provides a logical thinking process which identifies root causes of opportunities in order to reduce / eliminate losses.

What

• FI Planning and FI projects direct and then generate resources to fund the performance system while improving capability of processes, people and reducing loss

Role in the System

• Operators, technicians, maintenance, process improvement leadership, engineering

Who

• Reduction in targeted loss areas, increase in problem-solving confidence

Deliverables

How

• Project approach following the DMAIC methodology

•Define

•Measure

•Analyze

•Improve

•Control (and replicate)

Planned Maintenance

• Combination of preventive, predictive, andzero failure activities. Oversees maintenance schedule, processes, and activities to prevent breakdowns before they occur instead of repairing them after the fact

What

• Foundation for reliability and continuous improvement

Role in the System

• Maintenance technicians, maintenance leadership, engineering

Who

• Reduction in breakdowns and spare parts spend

Deliverables

How

•DTM support

•Lubrication management

•Spare parts management

•Predictive maintenance

•Cost management

•Preventive maintenance

•Skills enhancement

•Zero failure activities

The Advanced Pillars

Building on the Core

Production Control

How

• 7 Step process

•Value stream mapping

•Waste walks

•Improvement projects

•Layered audits

•Demand planning

•Skills enhancement

•Zero failure activities

• Reduce overall system cost through the elimination of waste identified within the system. To align the business offering with manufacturing execution.

What

• Maximization of the velocity of information and material flow through the process/system.

Role in the System

• Supply chain, production leadership, operators, technicians, suppliers, customers

Who

• Improve working capital/inventory, variable conversion cost, capacity utilization, floor space availability, inventory optimization

Deliverables

Quality Management

How

• 10-Step QM project implementation

•model project on model equipment defect

• A systematic methodology to achieve zero quality defects (not just fewer defects) by systematically seeking out, identifying, and eliminating root causes of ALL defects.

What

• Take processes beyond reliability to capability and the quality process from compliance to assurance

Role in the System

• Operators, maintenance, quality assurance, quality leadership

Who

• Reduction in defects, yield loss, waste

Deliverables

Early Equipment Management

• To “design out” losses related to equipment start-up before they occur by utilizing existing measurement data & learnings.

What

• Improved reliability and stability, setting foundation for other pillar improvements

Role in the System

• Operators, technicians, maintenance, production leadership, engineering

Who

• Reduction in start-up time, losses and costs

Deliverables

How

• concept and equipment planning

• equipment design

• manufacture equipment

• preliminary testing

• install equipment

• commission new equipment

• full production implementation

New Product Development

• Cross-functional activity to provide a continuous flow of innovative, new products

What

• To ensure a robust stream of new products into the system that creates value for the company and customer

Role in the System

• Customers, suppliers, business, research, manufacturing, supply chain

Who

• Shortened delivery cycle, high quality zero loss start-ups, meet/beat targeted costs, 100% on-time delivery

DeliverablesHow

• 6 Step Process

• Discovery & concept development

• Product design requirements

• Design for manufacturing

• Adoption & launch

• Scale-up & commercialization

Pillar Relationship Matrix5S DTM CSD PM FI QM PC EEM NPD

5S ● ● ● ● ● ● ● ●

DTM ● ● ● ● ● ● ● ●

CSD ● ● ● ● ● ● ● ●

PM ● ● ● ● ● ● ● ●

FI ● ● ● ● ● ● ● ●

QM ● ● ● ● ● ● ● ●

PC ● ● ● ● ● ● ● ●

EEM ● ● ● ● ● ● ● ●

NPD ● ● ● ● ● ● ● ●

= interaction= major impact on success

Energy

Inventory

Obsolescence

Quality / reworks

Waste

Training

Inspection & Testing

Material Handling

Planning

PM & Cleaning Downtime

Speed Loss

Minor Stops

Start-up / shut down

Change time

Breakdowns

NPDEEMPCQMPMFICSDDTM5S

Energy

Inventory

Obsolescence

Quality /

Waste

Training

Inspection & Testing

Material Handling

Planning

PM & Cleaning Downtime

Speed Loss

Minor Stops

Start-up / shut down

Change time

Breakdowns

5S

Some impactSome impact Medium impactMedium impact Major impactMajor impact Future impactFuture impact

Pillar to Loss Relationship Matrix