As American Standard

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As American Standards Corporate Vice President
of Manufacturing Technology, Dave Gleditsch led
the lean transformation of this 8.5 Billion
multi-national conglomerate.   American Standard
brands are global leaders in not only kitchen and
bath fixtures, but also in HVAC (Trane) and
electronic braking, stability, suspension, and
transmission control systems (WABCO).  Across
more than 100 factories in 35 countries, American
Standard has generated tremendous shareholder
value with enterprise-wide improvements through
lean best practices and business process
reengineering. Dave Gleditsch is a graduate of
General Motors Institute (now Kettering) and
holds an MBA from Regis University. Dave's 30
plus years of manufacturing experience includes
his assignments with General Motors,
Hewlett-Packard, Seagate, and American Standard -
as well as consulting assignments with a variety
of Fortune 500 companies. Dave has led the
development of three different software
applications in support of Just-In-Time and Lean
manufacturing - and he holds four patents on
demand planning methodologies. Currently Dave
serves as Chief Technology Officer for Pelion
Systems, the leading provider of Manufacturing
Process Optimization (MPO) software products and
services to support demand-driven manufacturing
strategies, such as Lean, six Sigma, and Flow
Manufacturing, to enable companies to achieve
and sustain manufacturing excellence.
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Ten Important Lessons
Air Conditioning - 5.0 billionBath and Kitchen
- 2.2 billionVehicle Controls - 1.4
billion 2003 Total Sales - 8.6 billion
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Results at American Standard
Industry analysts recognize lean capabilities as
the single most important contributor to
Standards turnaround
Dave Gleditsch, Corporate VP of Manufacturing
Technology 85 Plants Implemented 25 Plants
Certified
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Bath Kitchen American Standard is the world's
largest global manufacturer of bath kitchen
products. Standard has the industry's most
diverse range of products --- from faucets,
fixtures, whirlpools, accessories, showers - to
even the kitchen sink! American Standard can
trace their history back to 1875 when The
Standard Sanitary Manufacturing Company made
cast-iron bathtubs, washstands and water closets
in Pittsburgh, Pennsylvania.
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TRANE HEATING and COOLING Following a tradition
begun by James and Reuben Trane in 1913, Trane
makes heating and air conditioning systems for
both residential and commercial customers. Trane
Commercial Systems has the broadest product line
in the industry, with units rated for the highest
efficiency and sold at a competitive
price. Trane Residential Systems has a bold new
family of high-efficiency air conditioning
systems that are 20 percent smaller than their
predecessors and have 60 percent fewer parts.
Trane residential systems can now be found at
retailing giant Home Depot.
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VEHICLE CONTROLS WABCO is the world's leading
producer of electronic braking, stability,
suspension and transmission control systems for
heavy commercial vehicles. WABCO products are
also increasingly used in luxury cars and sport
utility vehicles (SUVs). WABCO is the only
company in the world that offers a our stability
control system for trucks that constantly
monitors the vehicle's speed, steering angle and
motion. WABCOs "Air Glide" suspension system
uses compressed air instead of steel springs to
deliver improved handling, comfort and fuel
efficiency. It's now being used in automobiles
and SUVs by DaimlerChrysler, Renault, BMW, Audi,
Land Rover, GM, Porsche, Volkswagen and Ford.
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Ten Important Lessons
Air Conditioning - 5.0 billionBath and Kitchen
- 2.2 billionVehicle Controls - 1.4
billion 2003 Total Sales - 8.6 billion
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1 - Do everything with the customer in mind

• Trane comfort systems are solutions
• Big Box Retail store opening process
• Supplier of the Year products plant
• Quick Cycle Shipping last minute changes
• Rapid prototyping global design team
• Defining Metrics where is the customer ?
• Voice of the Customer Six Sigma process
• Demand Driven Manufacturing

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Demand Driven Manufacturing

• Processes are aligned for fast response
• Execution is consistent
• Self-management speeds decisions reaction
• Flexibility is a known capability
• Believe the forecast !
• a team effort to define ACT closer-in to real
  events
• Build products replenish material as close to
  the need date as possible
• liberate lost capacity working on the wrong thing

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Demand Driven Manufacturing

• Processes are aligned for fast response
• Execution is consistent
• Self-management speeds decisions
• Flexibility is a known capability
• Believe the forecast !
• a team effort to define ACT closer-in to real
  events
• Build products Replenish material as close to
  the need date as possible
• liberate lost capacity working on the wrong thing

Promise the Best and Deliver What is Promised
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2 - One Size Does Not Fit All

• Technology, not just philosophy
• Higher volume, machine intensive, OEM customers
• 17 days to order a toilet
• We can flow around anything

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• Dont fear best practice flexibility
• Stop anarchy by providing structure
• Certification Mastery to eliminate cosmetic
  efforts
• Drive and support your defined method
• Walk the Talk
• When the going gets tough
• Give people the skills and tools to do the work
• Reasonable investments in capital and enabling
  technology
• Demand verified results
• Bringing all plants up to the level of the best
  performers
• Link compensation with business compelling KPIs

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3 - Show Me the Money !
1, 2, or 3
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Rigorous Control
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Connecting the Dots
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Without a yardstick, there is no measurement.
And without measurement, there is no control.
4 - How Good are We ENTITLED to Be ?
Pravin M. Shah Indian management consultant 1932-
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4 - How Good are We ENTITLED to Be ?
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Series of Breakthroughs Compounding Results
Series of Projects From To
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Maintaining Momentum How Good Are We Entitled
to Be ?
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5 - Think BIG with respect to Process
How Do Your Products Want to Be Produced ?
Clean Sheet of Paper Thinking
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Visualize Future State Breakthroughs
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Imagination is more important than knowledge.
Albert Einstein
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Effective Modeling Analysis
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There is nothing so useless as doing efficiently
that which should not be done at all.
Peter Drucker Business philosopher and author
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Methodically Driving Productivity

• Streamline eliminate
• Align reorganize standardize
• Optimize improve
• Maximize reengineer

The CFOs Frustration bottlenecked improvements
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6 - Deploy Technology to Foster Change
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Pick battles big enough to matter, small enough
to win.
7 - Three Bucket Approach to Change
Jonathan Kozol American author
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Three Bucket Approach
Next
Next
Strategic
Next
Next
Strategic
Month
Quarter
Next Year
Month
Quarter
Next Year

• KAIZEN
• 1 Wk Event
• Focus Do

• Enabling Tech
• Value Engineer
• Supplier Prog

• Wall to Wall
• Platform Design
• Standardization

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Key Elements of a Lean Destination

• KAIZEN
• 1 Wk Event
• Focus Do

• Enabling Tech
• Value Engineer
• Supplier Prog

• Platform Design
• Wall to Wall
• Standardization

SUSTAINABLE
FACT-BASED
VISIBLE
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8 - Reducing Risk and Disruption

• Clearly defined process one step at a time
• Eliminate waste and frustration from wandering
• Align with compelling business goals
• Dont work on things that dont matter or dont
  add up
• Enabling technology for productivity
• People on teams have another job to do
• Reasonable investment in organization
• Well-deployed support creates a lot of leverage
• Systematic change and control
• Define Measure Analyze Improve - Control

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Assumption is the mother of screwup.
Angelo Donghia American designer 1935-1985
Luck favors the prepared.
Louis Pastuer
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Concrete methods in times of change
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The man who makes no mistakes does not usually
make anything.
A word of caution
Edward John Phelps 1899
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9 - You Get What You Pay For

• Business Performance
• Sustaining Methods Infrastructure
• Breakthrough Results with Metrics

100,000
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10 - Leaders are Winners

• Aberdeen Study leaders in lean focused on
  competitive advantage as Priority One
• Toyota just announced an increase in their sales
  forecast for every one of their markets
• The Wall Street Journal
• Suppliers who took the lead with American
  Standard
• Rewarded with new and larger shares of business
• Weve never been afraid to be the first company
  to deploy new technology.
• Ben Stein Corporate Officer
• Sacred cows make the best burgers.
• Jim Schultz President of Trane
• You have to break eggs to make an omelet.
• Mano Kampouris Chairman Emeritus of American
  Standard

How Good Do You Want To Be ???
How Good Do You HAVE To Be ???
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Why Should Your Enterprise Care ?
Source Aberdeen Group, January 2005
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10 - Leaders are Winners

• Aberdeen Study leaders in lean focused on
  competitive advantage as Priority One
• Toyota just announced an increase in their sales
  forecast for every one of their markets
• The Wall Street Journal
• Suppliers who took the lead with
  American Standard
• Rewarded with new and larger shares of business
• Weve never been afraid to be the first company
  to deploy new technology.
• Ben Stein Corporate Officer
• Sacred cows make the best burgers.
• Jim Schultz President of Trane
• You have to break eggs to make an omelet.
• Mano Kampouris Chairman Emeritus of American
  Standard

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10 - Leaders are Winners

• Aberdeen Study leaders in lean focused on
  competitive advantage as Priority One
• Toyota just announced an increase in their sales
  forecast for every one of their markets
• The Wall Street Journal
• Suppliers who took the lead with
  American Standard
• Rewarded with new and larger shares of business
• Weve never been afraid to be the first company
  to deploy new technology.
• Ben Stein Corporate Officer
• Sacred cows make the best burgers.
• Jim Schultz President of Trane
• You have to break eggs to make an omelet.
• Mano Kampouris Chairman Emeritus of American
  Standard

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Pelion SystemsCreating Value from Experience
Pelion provides
Manufacturing Process Optimization driven by a
unique blend of expertise and technology

• Proven best practice methods in modular software
  solutions
• World class manufacturing expertise
• Track record of breakthrough results
• Globally recognized customer base
• Strong venture backing
• Customer-focused engagement process makes it easy
  to see whether Pelion solutions will add value
  for you

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Improvement Methodology Deployment
Source Aberdeen Group, January 2005
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Pelion MPO - Factory Pull System Software
The key to the Toyota Way and what makes Toyota
stand out is not any of the individual elements
... But what is important is having all the
elements together as a system. It must be
practiced every day in a very consistent manner
not in spurts.