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HY-CAPACITY, INC.
HY-CAPACITY, INC.

• Keys to Success

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Welcome to Hy-Capacity
Company Highlights

• Founded in 1978 as a remanufacturer of
  clutches, water pumps and torque amplifiers
• Currently offer over 30,000 new and
  remanufactured parts for agricultural equipment
• Employ approximately 115 full-time and 10
  part-time employees
• Cab Interior plant in Dayton, Iowa with 6
  full-time and 3 part-time employees
• 23 Distributors that service over 10,000
  dealers throughout the United States and Canada

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Welcome to Hy-Capacity
Team Driven Company
- Believing in employee empowerment and
continuous improvement -
Working through Teams to

• reduce cycle time
• reduce inventory
• reduce Work-in-Process (WIP)
• reduce costs
• improve quality
• increase productivity
• increase capacity
• increase sales
• increase profits

Here is Hy-Capacitys Concept of Lean and how it
works for us!
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Hy-Capacity - Team Driven
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HY-CAPACITY, INC.
HY-CAPACITY, INC.

• Lean Process

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Stage 1 - Opportunity Identification
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Stage 2 - Solution Design
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Teamwork

• Team Selection
• Upstream Customer
• Downstream Customer
• Expert
• Maintenance
• Management
• Facilitator

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Lean Goals

• Increase productivity
• Reduce space
• Decrease inventory levels
• Improve quality
• Maintain on-time delivery performance
• Maintain load fulfillment performance
• Reduce overtime expenses
• Reduce manpower/part-time hours

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Lean Team Day 1

• Discuss each Team members role
• Discuss Team goal
• Establish Team rules
• Discuss current process
• Observe current process

Lean Teams meet Monday Friday 1015 1200 for
2 weeks
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Team Meetings

• Recap from Previous Day
• Current Meeting Notes
• Action Plan for Next Day
• Responsibilities
• Deadlines

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Brainstorm
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Brainstorm
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Product Flow Mapping

• Improve Product Flow
• Eliminate Product Travel

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Cardboard Model 1-Inch Scale

• Improve Product Flow

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Stage 3 - Implementation
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Paper Model 11 Scale

• Employees simulate job operation
• Adjustments are made here
• Team votes on final plan

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Implementation Plan
Project Project   Team Start Finish Status
Stage 1 Stage 1 Stage 1        
Teardown Tables     Maintenance 01/12/06 01/25/06  
  Air dropped Air dropped Maintenance 01/12/06 01/25/06  
  Electrical dropped Electrical dropped Maintenance 01/12/06 01/25/06  
  Lighting Lighting Maintenance 01/12/06 01/25/06  
  Make Teardown Tables (or modify) with Racking, Tool boxes under table Make Teardown Tables (or modify) with Racking, Tool boxes under table Maintenance 01/12/06 01/25/06  
  Use old table components when possible Use old table components when possible Maintenance 01/12/06 01/25/06  
  Move Welder - cut hole in wall Move Welder - cut hole in wall Maintenance 01/12/06 01/25/06  
  Mount air cleaner Mount air cleaner Maintenance 01/12/06 01/25/06  
  Move welding curtains Move welding curtains Maintenance 01/12/06 01/25/06  
  Floor Mats - like Machine Shop Floor Mats - like Machine Shop Maintenance 01/12/06 01/25/06  
  Move HOT Table Move HOT Table Maintenance 01/12/06 01/25/06  
Stage 1 COMPLETED BY Stage 1 COMPLETED BY Stage 1 COMPLETED BY        
Stage 2 Stage 2 Stage 2        
Remove Washer     Maintenance 01/26/06 01/26/06  
  Take down part of track Take down part of track Maintenance 01/26/06 01/26/06  
  Move through Production room Move through Production room Maintenance 01/26/06 01/26/06  
  Blow pump out Blow pump out Maintenance 01/26/06 01/26/06  
  Take to Foth Building Take to Foth Building Jerry 01/26/06 01/26/06  
  Bring Greenie back from Livermore (will stay in Maint area until Viking is removed) Bring Greenie back from Livermore (will stay in Maint area until Viking is removed) Jerry 01/26/06 01/26/06  
Stage 2 COMPLETED BY Stage 2 COMPLETED BY Stage 2 COMPLETED BY        

• Broken into stages
• Team members assigned responsibilities
• Deadlines established

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Stage 4 - Performance Review
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Celebrate Success of Team

• Team T-Shirt
• Team Photo
• Team Lunch

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Continuous Improvement
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HY-CAPACITY, INC.
HY-CAPACITY, INC.

• Lean Teams The Journey

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Original Plant Layout
Machine Shop
UPS Loading Dock
Component Parts
Offices
TA
Hydraulic Pump
Core Room
Pressure Plate
Teardown
Boxing
Core Room
Disc
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Original Plant Layout
Machine Shop
UPS Loading Dock
Component Parts
Offices
TA
Hydraulic Pump
Core Room
Pressure Plate
Teardown
Boxing
Core Room
Disc
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Original Plant Layout
Machine Shop
UPS Loading Dock
Component Parts
Offices
TA
Hydraulic Pump
Core Room
Pressure Plate
Teardown
Boxing
Core Room
Disc
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Original Plant Layout
Machine Shop
UPS Loading Dock
Component Parts
Offices
TA
Hydraulic Pump
Core Room
Pressure Plate
Teardown
Boxing
Core Room
Disc
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Original Plant Layout
Machine Shop
UPS Loading Dock
Component Parts
Offices
TA
Hydraulic Pump
Core Room
Pressure Plate
Teardown
Boxing
Core Room
Disc
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Original Plant Layout Upstairs
UPS Loading Dock
Shipping Area
Core Room
Teardown
Boxing
Water Pump
Core Room
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Original Plant Layout Upstairs
UPS Loading Dock
Shipping Area
Core Room
Teardown
Boxing
Water Pump
Core Room
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Original Plant Layout Upstairs
UPS Loading Dock
Shipping Area
Core Room
Teardown
Boxing
Water Pump
Core Room
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HY-CAPACITY, INC.
HY-CAPACITY, INC.

• Phase 1 Core Room

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Core Lean Team

• ITS IMPOSSIBLE!!!
• CHANGE?!?!
• 525 Large Baskets
• 112 Small Baskets
• Mixed Unsorted Baskets
• Unidentified Baskets
• Basket Racks
• Transportation
• New Warehouse Layout

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Before Lean Team
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Before Lean Team
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Lean Team Results
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Lean Team Results
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Core Warehouse
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Meet the Team...
Cindy Danielson
Jerry Berte
Vouth Varangkounh
Daryl Rash
Greg Beekman
Molly Varangkounh
Karen Skoglund
Jeri Lane
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HY-CAPACITY, INC.
HY-CAPACITY, INC.

• Phase 2 Layout

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Layout 1
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Layout 1
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Layout 1
Shipping
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(No Transcript)
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New Area Receiving/Maintenance
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Meet the Team...
Bob Krug
Jerry Berte
Cindy Danielson
Molly Varangkounh
Greg Beekman
Keith Edge
Karen Skoglund
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HY-CAPACITY, INC.
HY-CAPACITY, INC.

• Phase 3 Disc

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Team Goal

• Move and Consolidate Humboldt Livermore Disc
  Rooms

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Team Goal

• Incorporate Packaging Into Production Line

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Disc Lean Team

• Space Constraints

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Disc Lean Team Layout
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Disc Lean Team Results
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Meet the Team...
Kenny Bratland
Bob Krug
Jerry Berte
Karen Skoglund
Cindy Danielson
Molly Varangkounh
Dean Kellner
Greg Beekman
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HY-CAPACITY, INC.
HY-CAPACITY, INC.

• Phase 4 Shipping

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New Shipping Area
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Shipping Lean Team Layout
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Planning, Preparation, Organization
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"Movers Shakers"

• 37 Employees and Several Distributors Contributed
• Hours worked
• Friday 600pm 1000pm
• Saturday 700am 500pm
• Sunday 700am 500pm
• MONDAY NORMAL BUSINESS DAY

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Shipping Area Results
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Continuous Improvement
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Meet the Team...
Mike Grimm
Karen Skoglund
Bob Krug
Jay Gould
Cindy Danielson
Jerry Berte
Jeri Lane
Molly Varangkounh
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HY-CAPACITY, INC.
HY-CAPACITY, INC.

• Phase 5 PPA 1

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Team Goal

• Move and consolidate Humboldt Livermore
  pressure plate rooms
• Design a layout that has the capacity to meet
  customers demands

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PPA Lean Team Results
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Meet the Team...
Bob Krug
Keel Zinnel
Karen Skoglund
Jerry Berte
Kenny Bratland
Chad Vaudt
Molly Varangkounh
Scott Dahl
Cindy Danielson
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HY-CAPACITY, INC.
HY-CAPACITY, INC.

• Phase 6 PPA 2

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Layout 2
TA
Offices
Machine Shop
Maintenance
Receiving
Hyd. Pump
Core Storage
R D / Catalog
PPA Components
Shipping / Finished Goods
Water Pump Prep
Shipping
Pressure Plate Assembly
Teardown
Water Pump
Disc Assembly
Disc Components
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Layout 2
TA
Offices
Machine Shop
Maintenance
Receiving
Hyd. Pump
Core Storage
R D / Catalog
PPA Components
Shipping / Finished Goods
Water Pump Prep
Shipping
Pressure Plate Assembly
Teardown
Water Pump
Disc Assembly
Disc Components
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Layout 2
TA
Offices
Machine Shop
Maintenance
Receiving
Hyd. Pump
Core Storage
R D / Catalog
PPA Components
Shipping / Finished Goods
Water Pump Prep
Shipping
Pressure Plate Assembly
Teardown
Water Pump
Disc Assembly
Disc Components
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Layout 2
TA
Offices
Machine Shop
Maintenance
Receiving
Hyd. Pump
Core Storage
R D / Catalog
PPA Components
Shipping / Finished Goods
Water Pump Prep
Shipping
Pressure Plate Assembly
Teardown
Water Pump
Disc Assembly
Disc Components
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Team Goal

• Redesign a layout to increase capacity to meet
  our customers needs

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PPA Lean Team Results
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Continuous Improvement
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Meet the Team...
Chad Vaudt
Bob Krug
Jerry Berte
Molly Varangkounh
Cindy Danielson
Keel Zinnel
Reggie Kopecky
Karen Skoglund
Scott Dahl
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HY-CAPACITY, INC.
HY-CAPACITY, INC.
Phase 7 PPA Prep Component Parts
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Team Goal

• To develop an efficient prep line with point of
  use storage

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Lean Team Results
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Meet the Team...
Bob Krug
Cindy Danielson
Karen Skoglund
Keel Zinnel
Kenny Bratland
Chad Vaudt
Scott Dahl
Jerry Berte
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HY-CAPACITY, INC.
HY-CAPACITY, INC.

• Phase 8 Water Pump

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Team Goal

• Move Water Pump Downstairs to the Production Area
• Increase Efficiency

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Lean Team Results

• Water Pump - Assembly

• Water Pump - Prep

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Continuous Improvement
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Meet the Team...
Jerry Berte
Greg Beekman
Cindy Danielson
Jay Gould
Bob Krug
Molly Varangkounh
Karen Skoglund
Steve Jarvis
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HY-CAPACITY, INC.
HY-CAPACITY, INC.

• Phase 9 A/C Hose

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Lean Team Results
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Meet the Team...
Greg Beekman
Steve Jarvis
Bob Krug
Cindy Danielson
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HY-CAPACITY, INC.
HY-CAPACITY, INC.

• Phase 10 TA

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Team Goal

• To increase efficiency and improve product flow

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Lean Team Results
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Meet the Team...
Dan Brownfield
Don Riley
Steve Lehman
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HY-CAPACITY, INC.
HY-CAPACITY, INC.

• Phase 11 Hydraulic Pump

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Team Goal

• To increase efficiency and improve product flow

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Lean Team Results

• Hydraulic - Assembly

• Hydraulic - Prep

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Meet the Team...
Bob Krug
Cindy Danielson
Steve Lehman
Chad Lange
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HY-CAPACITY, INC.
HY-CAPACITY, INC.

• Phase 12 Quality Return

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Team Goal

• To increase efficiency and improve product flow

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Lean Team Results
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Meet the Team...
Bob McBurney
Keel Zinnel
Michael Bleich
Jeff McCullough
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HY-CAPACITY, INC.
HY-CAPACITY, INC.

• Phase 13 Teardown - PPA

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Team Goal

• To increase efficiency and improve product flow

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Lean Team Results

• Before

• After

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Lean Team Results
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Meet the Team...
Greg Beekman
Jeremy Tinken
Karen Skoglund
Dustin Scott
Molly Varangkounh
Bob Krug
Cindy Danielson
Karen Rapple
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HY-CAPACITY, INC.
HY-CAPACITY, INC.
Phase 14 Teardown - Disc Waterpump IN
PROCESS
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Team Goal

• To increase efficiency and improve product flow

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Meet the Team...
Greg Beekman
Karen Skoglund
Cindy Danielson
Jeremy Tinken
Molly Varangkounh
Karen Rapple
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Current Layout
Completed Lean Process
In Process
TA
Offices
Machine Shop
Maintenance
Receiving
Hyd. Pump
Core Storage
R D / Catalog
PPA Components
Shipping / Finished Goods
Water Pump Prep
Shipping
Pressure Plate Assembly
Teardown
Water Pump
Disc Assembly
Disc Components
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Upcoming... Teardown - TA
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Upcoming... Machine Shop
Steve Lehman
Dustin Scott
Josh Miller
Steve Lanning
Todd Baker
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Upcoming... Receiving
Gary Flurer
Karen Olson
Karen Skoglund
Molly Hendrickson
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Upcoming... Warehouse 12
Jerry Berte
Terese Granahan
Aric Lange
Delmer Zinnel
Shane Tofteberg
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Upcoming... Accounting
Amy Rodenberg
Angie Sampson
Shelly Erpelding
Marianne Shepherd
Mary Bormann
Mindy Derrig
Jaclyn Olson
Carol Schiltz
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Upcoming... Inside Sales/Tech
Barb Wiuff
Jeff McCullough
Steph Bowden
Diane Flood
Craig Flood
Dan McKibban
Keel Zinnel
Lee Inman
Terri Edwards
Christy Larson
Cindy Danielson
Jeri Lane
Jeff Olson
Roberta Clark
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Upcoming... Purchasing
Kenny Bratland
Pam Anderson
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Upcoming... RD/Catalog
Mike Grimm
Jess Caryl
Tawny Pingel
Charlene Sandven
Scott Dahl
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Upcoming... Scheduling
Butch Sumner
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Upcoming... Cab Interior Division
Deb Hayes
Jeff Helvick
Tracey Anderson
Scott Danielson
Rob Hansen
Sherri Hansen
Sara Morford
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Continuous Improvement
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Lean Teamwork ---------------------- RESULTS

• Increased Productivity 75 - 100
• Reduced Space by 76 on average company wide
• Reduced Overtime costs by 96 since 2003
• Reduced Manpower/Part-time hours by 28.5 since
  2003
• Reduced company wide inventory levels by 30
• Defects reduced to less than 1
• On-Time Delivery to customers is currently 99.8
• Load Fulfillment Performance is currently 99.8

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HY-CAPACITY, INC.
Lean is a journey, not a destination.