THE LEAN JOURNEY

TO A VISUAL WORKPLACE

BRADY CASE STUDY: TOSHIBA CORPORATION

Toner Manufacturing Plant Mitchell, South Dakota

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 TOSHIBA CORPORATION - THE LEAN JOURNEY TO A VISUAL WORKPLACE

TABLE OF CONTENTS

3 About the Customer: Toshiba America Business Solutions, Inc.

Plant History
The Journey to Lean
- Traffic Definition: The Green Belt
- Warehouse Organization
- Production Control

7 Total Productive Maintenance (TPM)

Visual Applications

8 Lessons Learned
- The Power of Communication
- On Demand Label Creation

9 Visual Workplace Success

Toshiba Workplace Today

10 Looking Ahead: Next Steps

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About Toshiba America Business Solutions, Inc.

Toner Manufacturing Plant Mitchell, South Dakota

In operation since 1986, the Toshiba toner manufacturing plant in

Mitchell, South Dakota produces toner primarily for use in Toshiba
copiers. The plant has 186,000 square feet of manufacturing space,
104 employees and four key processes: mixing, melting, grinding and
packaging. The plant runs three shifts a day, five days a week, and
produces approximately 15 products that are packaged into nearly
120 skus. Its primary service is to the North American market, but its
products will occasionally ship to Central and South America, Europe
and Asia, as well.

Originally built by Ross Laboratory and purchased by 3M, the plant

was aquired in 1986 by Toshiba America Business Solutions, a global
manufacturer of copiers, facsimiles, multifunction products, network We knew that if we could get
controllers, and toner products. Toshiba retained all of the 3M employees better organized, wed become
and made the plant a part of its US-based operations, which are
headquartered in Irvine, California. a safer facility, Safety was
the number one issue that we
The Journey to Lean
Toshiba introduced lean and total productive maintenance (TPM) initiatives
were looking at.
to the Mitchell plant in 1991. The plant chose Jon Wessel, Bill Kummer - Jon Wessel
and Ed Weber to lead the initiative. The three team members received two
weeks of full-time training in Japan, where they were introduced to the
Toshiba Total Productivity (TP) system, including lean, six sigma, TPM, visual controls, and more. They then returned back
to the plant, accompanied by a Japanese TP specialist, Mr. Hagiwara, to initiate the program on a local level.

In their journey to lean, the plant had a number of goals for the changes that would be made. First and foremost, the main
objective of their initiative was to improve the safety of their facility. To do this, they needed to create a more organized and
controlled work environment.

We knew that if we could get better organized, wed become a safer facility, said Wessel. Safety was the number one
issue that we were looking at.

While creating a safer environment, the team planned to improve the quality and productivity of the work environment as well.
They aimed to create an environment where employees could do their job better and easier than before. To do this, they needed
to eliminate information deficits. Employees did not have the knowledge they needed to do their jobs efficiently and effectively.
Instead, they were often forced to waste valuable time searching, waiting or retrieving that information. By implementing a visual
workplace, the plant could eliminate these questions, and in turn, see significant improvements in productivity and quality.

Traffic Control The Green Belt

The first project in the plants TP initiative was aimed at improving safety on the
production floor. Armed with a roller and a few gallons of green paint, Wessel
and Hagiwara began to separate the plants pedestrian traffic from its vehicle
traffic. They created a designated pedestrian walkway throughout the plant, and
painted it green to clearly mark the area for people traffic. The green belt was
defined as a safe area, and employees were required to utilize it as they walked
to and from work areas throughout the plant.

Toshibas Green Belt Walkway

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When the green belt walkway crossed paths with lanes for vehicle traffic, the team
painted a red stop sign onto the floor at the intersection a clear indication that caution
should be exhibited before proceeding into the crossway.

Consistent with the principles of visual workplace, the team classified the visuals
according to their purposes. If a visual is intended to simply share information, it is called
a visual display. If a visual is intended to try to change an employees behavior, it is
called a visual control. The red stop sign mentioned above was considered a visual
control because it was a visual that communicates a change in behavior. The ultimate
visual control is a poka-yoke device a mistake-proof visual that actually prevents,
corrects or draws attention to errors as they occur.
A poka-yoke device indicates when a
roll of tape should be thrown away.

THE DIFFERENT ROLES OF VISUALS:

The levels of visual management are often explained
Visual Display = Share information using the analogy of a railroad crossing. When you
pass a railroad, you may encounter all three types
Visual Control = Guides behavior
of visuals. First, youll see a railroad crossing sign.
Poka-yoke = Error-proof device This sign ser ves as a visual display because it
provides you with infor mation; it tells you that you
are approaching a railroad crossing. As you near the
R

railroad crossing, you may see a stop sign, perhaps

G
A
R

IN
IL
A

IN

S
IL

R R with a flashing light. These ser ve as visual controls,

S
S

O
RO
S

R
O

AD
RO

as they instruct you to stop, but do not force you. And

R

AD
C

finally, a crossing gate will lower to physically prevent

you from crossing the tracks, which ser ves as a poka-
yoke device.

Warehouse Organization
After the green belt walkways had been successfully implemented, the team initiated the next project: organizing and color
coding the warehouse. The goal of this project was to eliminate confusion, reduce search times, control inventory and
minimize the plants carrying costs. Visual controls were a key component of the organization process, with the goal of
controlling inventory not only electronically on the computer, but visually on the shop floor as well.

You want to make your visual control system so simple and so easy that anybody can understand it, said Kummer. If it is
an outsiders first day in the factory, after a brief introduction and walk around they should be able to understand what were
trying to do. We want to make it so that anybody can notice an abnormality and point out the problem.

The team based their strategy for re-organizing the warehouse on three main initiatives: visual identification of stored
items, storage space restraints, and production pickup and drop-off areas.

1. Visual identification of stored items:

Using borders, placards and color, the team identified all of the storage areas for the
items in the warehouse, and then divided the items into three categories: raw materials,
finished product and packaging supplies. They assigned a color to each category
yellow, red or green and moved the items in that category to a specific section of
the warehouse. All of the labels, placards, floor markings and other visuals in the
section were all color coded to match. The team even labeled the aisles and rows
of each section according to an apartment complex model, marking each storage
spot with a color-coded unit or location number.

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Before we started, we had a warehouse that was accurately

called random storage, said Wessel. You could just put things
Before we star ted, we had a
where you wanted to. There were a lot of times when we would warehouse that was accurately
have to search because we didnt know exactly where the material
was. When we went to designated storage areas, everything was called random storage. When
easier to find. It was easier to keep track of inventory so there was
less time wasted looking
we went to designated storage
for supplies. areas, ever ything was easier to
2. Storage space restraints: find. It was easier to keep track of
To prevent the plant from overstocking its inventory, the team also
limited the size of the storage spaces throughout the warehouse. inventor y so there was less time
In the past, items were stored wherever there was room, and
oftentimes items were overstocked because they were spread
throughout the warehouse.
wasted looking for supplies.
- Jon Wessel
After the team limited the storage spaces, there was no space for
extra inventory. If a storage space was only able to hold 4 items, the warehouse only accepted 4 items of that product
and nothing more. If excess inventory was purchased, the inventory would have to be placed outside of the storage
area, making it distinctly obvious that a mistake had occurred.

After limiting the storage space in the warehouse, the team realized there were several other benefits that resulted
from this project. The new storage space system also made it easier to identify inactive or obsolete materials.
Employees could now easily detect when an item has been in storage for an extended period of time and then take
the necessary steps to free up that storage space accordingly.

3. Production Pickup/Drop-off Zones:

The team created pickup and drop-off
areas that housed a designated amount of
raw materials specifically for the production
staff members. This prevented production staff
members from taking items from the warehouse,
and helped the team manage their inventory
levels more effectively.

We developed a raw materials staging area

and told the operators that this was their area,
said Wessel. We set up slots specifically for
them. When their slots were depleted or nearing
depletion, they can radio to the warehouse
folks for more. That was their area but the
warehouse was now off limits.

In the past, production staff could come into

the warehouse and take whatever items they
needed. This often led to costly stock outs and
skewed inventory levels. The new pickup and
drop-off zones kept production personnel out of
the warehouse, which allowed the warehouse
employees to keep things better organized. As
a result, the warehouse was able to reduce their
overall inventory levels and significantly improve
its inventory management.

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 TOSHIBA CORPORATION - THE LEAN JOURNEY TO A VISUAL WORKPLACE

Production Control:
Visuals were the key component of the continuous improvement
initiatives that took place in the production areas of the plant.
The team used visuals to color code production lines, tools and
equipment. The colors of the tools matched their designated
production line, making it evident when a tool was mistakenly placed
or borrowed by a different line. To ensure that the appropriate toner
was always sent to the correct production line, the team color coded
the tote bins that contain toner product as well. Even the procedure
binders used to hold a given set of standards were color coded
by product.

Similar to the storage space restraints of the warehouse, the team also created a predetermined number of storage slots
for the work in progress inventory on the lines. Each line was set up to reflect a fifo methodology, or first in, first out. This
kept the production staff from overproducing, as they were only allowed to produce the inventory that they had room for in
their fifo slots.

Additionally, labels and signs were also used as a common way to show quality standards or give one point lessons for
their employees. They would create a label that had instructions on how to execute the most critical part of the procedure.
As a result, many of the plants most common mistakes were remedied and equipment operating errors were significantly
reduced.

Total Productive Maintenance (TPM)

After successfully separating the people traffic from the vehicle traffic, organizing the warehouse and implementing
production controls, the team focused their attention on equipment reliability improvements. Utilizing a methodology called
Total Productive Maintenance (TPM), they implemented a series of preventative maintenance projects aimed to keep
machines in optimal working condition.

The first project was establishing preventative TPM checks, or scheduled equipment inspections. Every TPM check point
was audited based on its assigned time interval (e.g. 1 week, 6 months, 3 years), which was marked by a visual on the
piece of equipment. These checks helped the plant keep the machines in working order, and detect abnormalities or errors
before equipment failures occurred.

The team used a variety of visuals to help implement these TPM checks. They marked infrared inspection points with
labels to ensure that the infrared testing was consistently conducted in the exact same point. They put multicolor labels
on gauges near equipment as a simple way for employees to check for process
abnormalities, and they placed labels and color coded visuals throughout the
maintenance tool crib to reduce search time.

We used to have several pieces of equipment that had build-up problems after
repeated runs or usage, said Wessel. It required extensive downtime to shut it
down and clean it out. The operators were having a tough time deciding when the
build-up was severe enough that it needed to be shut down and cleaned. So we
decided to make it simple we had our engineers take a look at it and then we built
a simple gauge label. We attached it to a chain and put it by the equipment, and now
operators can use the gauge to check the build-up level, knowing exactly when its
time to clean the equipment.

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Visual Applications
With the versatility to create labels internally, the team was able to
experiment with visuals throughout the plant. Many of the applications
they implemented proved to be extremely valuable to their continuous
improvement initiatives.

For example, they marked the front panels of equipment and

machines with visuals that contained information about the where
power to the equipment was fed from. When the equipment needed
to be de-energized, these visuals would then tell employees which
switch to turn off, and direct them to the location of that switch in the plant. At the
control panel or switch panel, the different breakers were again identified with
visuals, cross referencing the piece of equipment being serviced. These visuals
significantly reduced search time during the de-energizing process, and helped
to ensure that the correct shutdown procedures were easily identified and clearly
understood at all times.

Visuals were used to mark employees tool carts with the color of their
department, making it easy to identify where each cart belonged in the plant.
Inside the cart, employees were asked to label their toolbox with their name in
the same color, and create cut out foam spots for each one of their tools so that
missing tools could be noticed at a glance.

Visuals also marked the location of eyewash stations, fire extinguishers and
other safety equipment. The team posted large signs and painted bold colored
stripes on the wall above the equipment. The painted stripes extended up to the
ceiling, making the location of the items easily visible from anywhere in the plant.
Safety equipment was marked with green paint and visuals, and fire fighting
equipment was marked with the color red.

Lessons Learned
There were a number of lessons learned throughout the Toshiba toner plants
lean journey that other plants can benefit from. The lean management team
made the following insights about the plants experiences:

The Power of Communication

One of the most important aspects of a successful visual workplace initiative
is how the projects are communicated to the employees. In hindsight, the team at Toshiba would have spent more time
educating its employees about the concepts and techniques behind the changes that were going to be made. In some
cases, processes were implemented before they were explained to department heads or shop floor employees. For
example, it wasnt until after the green belt was painted that employees were told why it was there.

If we had to do it all over again, I would have got everybody together and said, Okay, there is going to be a transition here
in our facility - we didnt do that, said Wessel.

The team quickly learned that communication was crucial to the success of their lean projects. By educating their
employees about the purpose and benefits of the changes being made, they found the projects faced less resistance; most
importantly, employees were more willing to help the changes be successful.

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On-Demand Label Creation

With such a large amount of visuals needed for each project, the team
quickly realized that creating labels in-house could save them time and
Its really impor tant for the
money. If they outsourced the labels, it would take days for them to be operators to have the ability
ready, and the costs were significantly higher than in-house labeling
system.
to make a label or replace a

Many of the plants employees have the ability to create labels on demand,
label when they need to.
including maintenance employees and shop floor employees. In fact, it - Duane Letcher
is typically the operators who determine when a visual is needed not
management. The plant has two standalone label printers, the Brady
Labelizer Plus and the Brady GlobalMark Cut & Color printer,
as well as a portable label printer, the Brady IDXpert printer.
Duane Letcher, the total productivity representative, and two other
employees are trained to create more complex, multicolor visuals
on the GlobalMark printer; however, the majority of the visuals
are created by employees with little to no training. Standards
are posted next to the label printers to help employees design
the labels, ensuring that the legends and abbreviations remain
consistent throughout the plant.

Its really important for the operators to have the ability to make a
label or replace a label when they need to, said Letcher. You want
them involved in the making the labels and keeping them up-to-
date because theyre the ones that use the machines and equipment every day.

Whenever shop floor employees have spare time in their shifts, they are often asked to create labels with one of the plants
in-house label makers. These employees will create visuals for new processes and lean initiatives, and identify equipment
throughout the plant.

Visual Workplace Success

Since implementing the lean and visual workplace techniques in their facility, the plant has seen an increase in
productivity, safety and quality. Color coding, equipment identification, instructive signs, and other types of visuals have
made the facility cleaner and more organized, which helps employees do their jobs more effectively. In fact, new employee
training has been significantly reduced because the visuals can now guide new and temporary employees through the
processes.

Lean and visuals have also helped the plant achieve its ISO certification, passing the ISO 9000, 14000, and 18000 on
the first time. Its Cost of Poor Quality metric has drastically decreased since the visuals have been installed. Delivery is
typically over 99%, and customer complaints are minimal.

While the exact return on the investment is not made public, its clear that the plants visual workplace initiatives have been
tremendously successful. Completed projects have cost savings between $10,000 and $200,000 per project.

Each year we have a goal for the amount of financial savings that we aim to meet through our programs, said Kummer.
Weve met that goal for the last 5 years. And those targets have been very aggressive. But all that we do for visual
workplace, for lean, for TPM its all supposed to roll into that. Thats what we believe.

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Looking Ahead: Next Steps

Today, the Toshiba plant boasts a team of more than 15 people
who are actively involved with their continuous improvement plans,
including two primary lean champions, 11 project leaders or green
belts, one plant manager and one TPM manager.

In order to ensure that this success is sustained in the months

ahead, directors and managers of the leadership team tour the
plant each month. They write up reports of any incidents or
abnormalities detected throughout the tour, and send the reports
to the department managers, who are then held accountable for
remedying the situation within two to three weeks.

With several centrally managed lean successes under their

From left to right: Bill Kummer, Duane Letcher and Jon Wessel
belt, they are now shifting their efforts toward Kaizen continuous
improvement strategies, with the goal of creating a lean culture where improvements are driven by the shop floor.

The concepts and the ideas are in place, said Wessel. Now we are just trying to disseminate that training down to the
shop floor employees. We have made a lot of improvements, but many of the employees are still waiting for me, Duane or
their supervisor to get them going. We want them to just to do it on their own.

The entire workforce is currently being trained on the concepts and techniques of lean manufacturing. The team is using a
15-step training process that involves problem definition, root cause analysis, value stream mapping, and countermeasure
methods like Poka-yoke, Standard Work and Plan, Do, Check and Adjust (PDCA) management. The lean project leaders,
or green belts, have been implementing and coaching the employees throughout the process. The use of visuals has
played a vital role in communicating and sustaining these new best practices.

Everyone has their different capacities throughout the plant, but they all have ideas, said Wessel. You need your shop
floor employees, your maintenance operators and your supervisors out there to be engaged. Everybody in the plant needs
to be able to recognize when something is out of place and needs improvement.

The team has set a target of generating one to two lean improvement
ideas per employee this year, with plans of completing many more small
projects throughout the year. Theyll accept project ideas with cost-savings
estimated to be as low as $50 per project, and get together with their team Ever ybody in the plant needs
every two weeks to prioritize the upcoming projects. With ideas coming to be able to recognize when
from employees throughout the entire organization, the team hopes many
of the small projects will reap big benefits. something is out of place and
Theres always room to improve, said Wessel. There will always be
opportunities out there. But we now have the strategies in place to
needs improvement.
recognize those opportunities, and whenever possible, see them through. - Jon Wessel
And because of that, our plant will be better off in the future. A lot better.

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Learn more about Bradys Visual Workplace

Solutions
The team at the Toshiba toner plant used a variety of Brady visual
workplace products throughout their lean journey, including benchtop and
portable label printers, and hundreds of labels, signs and tags.

If youd like to talk to a representative about how Brady can help you start
your journey to lean, please call 888-250-3082.

To learn more about the Brady visual workplace product solutions used
throughout the Toshiba plant, visit www.BradyID.com/VisualWorkplace.
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