1 00:00:00,000 --> 00:00:02,520 The following content is provided under a Creative 2 00:00:02,520 --> 00:00:03,940 Commons license. 3 00:00:03,940 --> 00:00:06,330 Your support will help MIT OpenCourseWare 4 00:00:06,330 --> 00:00:10,660 continue to offer high-quality educational resources for free. 5 00:00:10,660 --> 00:00:13,320 To make a donation or view additional materials 6 00:00:13,320 --> 00:00:17,190 from hundreds of MIT courses, visit MIT OpenCourseWare 7 00:00:17,190 --> 00:00:18,370 at ocw.mit.edu. 8 00:00:27,942 --> 00:00:29,418 [HYDRAULICS HISSING] 9 00:00:40,242 --> 00:00:41,718 [MACHINE RUMBLING] 10 00:00:46,638 --> 00:00:48,114 [HYDRAULICS HISSING] 11 00:00:49,870 --> 00:00:51,620 EARLL MURMAN: Well, good morning, Claudio. 12 00:00:51,620 --> 00:00:52,470 CLAUDIO GELMAN: Good morning, Earll. 13 00:00:52,470 --> 00:00:53,790 Thank you, again, for coming. 14 00:00:53,790 --> 00:00:58,140 It's always a pleasure to show you the factory to you. 15 00:00:58,140 --> 00:01:00,740 So before the main purpose of today, 16 00:01:00,740 --> 00:01:03,780 I'll show you the value stream, the factory, the product flow. 17 00:01:03,780 --> 00:01:05,810 But before that, I'm going to give you 18 00:01:05,810 --> 00:01:07,733 a little preview of who we are. 19 00:01:07,733 --> 00:01:08,900 EARLL MURMAN: Oh, wonderful. 20 00:01:08,900 --> 00:01:09,025 Yeah. 21 00:01:09,025 --> 00:01:10,230 Well, everybody knows New Balance, 22 00:01:10,230 --> 00:01:11,855 but tell us about your journey to lean. 23 00:01:11,855 --> 00:01:14,300 CLAUDIO GELMAN: Specifically about the Lawrence factory. 24 00:01:14,300 --> 00:01:18,500 The factory, it specifically is divided into-- 25 00:01:18,500 --> 00:01:21,008 standing here, you've got to your left side the portion 26 00:01:21,008 --> 00:01:22,550 that we call the [? cutting ?] stage. 27 00:01:22,550 --> 00:01:26,540 This is the made in America shoes that we cut from scratch 28 00:01:26,540 --> 00:01:27,590 and we cut here. 29 00:01:27,590 --> 00:01:28,730 And to your right-- 30 00:01:28,730 --> 00:01:29,750 it's my right side-- 31 00:01:29,750 --> 00:01:32,930 is what we call the source upper world. 32 00:01:32,930 --> 00:01:36,710 We get the sole and the upper from Asia, 33 00:01:36,710 --> 00:01:38,260 and we just put it together. 34 00:01:38,260 --> 00:01:40,260 EARLL MURMAN: Now, are you the only shoe company 35 00:01:40,260 --> 00:01:42,080 that actually manufactures shoes in the US? 36 00:01:42,080 --> 00:01:43,280 CLAUDIO GELMAN: I understand yes, it is. 37 00:01:43,280 --> 00:01:45,080 EARLL MURMAN: That's what's behind me here. 38 00:01:45,080 --> 00:01:48,110 CLAUDIO GELMAN: And that's our competitive advantage is great. 39 00:01:48,110 --> 00:01:51,307 You know, turn around shoes in two or three days. 40 00:01:51,307 --> 00:01:52,640 EARLL MURMAN: Two or three days? 41 00:01:52,640 --> 00:01:54,080 CLAUDIO GELMAN: Yeah, we're going to get it 42 00:01:54,080 --> 00:01:54,940 in the customer's hand. 43 00:01:54,940 --> 00:01:56,310 EARLL MURMAN: We'll see how you do that when 44 00:01:56,310 --> 00:01:57,290 we go through the value stream. 45 00:01:57,290 --> 00:01:59,300 CLAUDIO GELMAN: Absolutely, I'll show that. 46 00:01:59,300 --> 00:02:04,610 So some statistics, we pack 5,200 pair a day 47 00:02:04,610 --> 00:02:06,500 and ship 5,200 pair a day. 48 00:02:06,500 --> 00:02:08,840 We are 220 associates. 49 00:02:12,013 --> 00:02:14,680 I'm going to show you when we go through operation and the value 50 00:02:14,680 --> 00:02:18,700 stream, which is a group operation put strategically 51 00:02:18,700 --> 00:02:22,503 in a cell or U-shape to make a product. 52 00:02:22,503 --> 00:02:24,920 There's some history behind it, and it's very interesting. 53 00:02:24,920 --> 00:02:27,820 What you see here is a product of three and a half, 54 00:02:27,820 --> 00:02:30,400 four years of lean transformation. 55 00:02:30,400 --> 00:02:31,990 Three and a half years ago, we decided 56 00:02:31,990 --> 00:02:33,790 to work with a [INAUDIBLE] production 57 00:02:33,790 --> 00:02:37,190 company to learn about that, their production system, 58 00:02:37,190 --> 00:02:42,100 which lean is another name for it. 59 00:02:42,100 --> 00:02:43,900 Four years ago, it used to take us 60 00:02:43,900 --> 00:02:46,360 eight days to make a pair of shoes. 61 00:02:46,360 --> 00:02:46,960 Eight days. 62 00:02:46,960 --> 00:02:47,870 EARLL MURMAN: From start to finish? 63 00:02:47,870 --> 00:02:48,730 CLAUDIO GELMAN: From start to finish. 64 00:02:48,730 --> 00:02:50,920 EARLL MURMAN: You mean you weren't working on that shoe 65 00:02:50,920 --> 00:02:52,390 the whole time but start to finish-- 66 00:02:52,390 --> 00:02:53,110 CLAUDIO GELMAN: Well, that's a good question 67 00:02:53,110 --> 00:02:55,420 because it's what we call the value added work, 68 00:02:55,420 --> 00:02:57,450 which was only 23 minutes. 69 00:02:57,450 --> 00:03:00,820 So the shoe was floating in this factory for eight days, 70 00:03:00,820 --> 00:03:03,760 with only associates touching the shoe, 71 00:03:03,760 --> 00:03:07,540 adding value to the shoe for 23 minutes. 72 00:03:07,540 --> 00:03:10,180 With lean transformation, after three and a half years, 73 00:03:10,180 --> 00:03:12,280 we went from eight days to right now, 74 00:03:12,280 --> 00:03:15,880 it would take us between two and three hours in value stream 75 00:03:15,880 --> 00:03:17,570 to produce a pair of shoes. 76 00:03:17,570 --> 00:03:19,597 So that's in 98% reduction. 77 00:03:19,597 --> 00:03:22,180 EARLL MURMAN: It's still about 23 minutes of value added time? 78 00:03:22,180 --> 00:03:23,590 CLAUDIO GELMAN: Yes, absolutely. 79 00:03:23,590 --> 00:03:24,520 EARLL MURMAN: So there's actually still 80 00:03:24,520 --> 00:03:26,380 some room potentially for improvement. 81 00:03:26,380 --> 00:03:27,880 CLAUDIO GELMAN: Once you start lean, 82 00:03:27,880 --> 00:03:29,200 it becomes part of your DNA. 83 00:03:29,200 --> 00:03:30,430 You never stop. 84 00:03:30,430 --> 00:03:33,670 Well, you see supervisors and flow coordinators, 85 00:03:33,670 --> 00:03:36,370 which are our team leaders, always with a watch, 86 00:03:36,370 --> 00:03:40,000 looking at the cycle time to see if there's 87 00:03:40,000 --> 00:03:41,815 opportunity to improve. 88 00:03:45,710 --> 00:03:49,190 So there are other statistics we reduced. 89 00:03:49,190 --> 00:03:51,800 We used to be in two floors. 90 00:03:51,800 --> 00:03:52,850 Right now, we're in one. 91 00:03:52,850 --> 00:03:54,620 We emptied a quarter. 92 00:03:54,620 --> 00:03:59,510 I think it's close to 2,500 square feet of floor. 93 00:03:59,510 --> 00:04:01,343 The beginning of a value stream-- 94 00:04:01,343 --> 00:04:03,260 in those days, it was not called value stream. 95 00:04:03,260 --> 00:04:05,150 It was like straight lines-- 96 00:04:05,150 --> 00:04:07,575 used to be in the first floor, the beginning. 97 00:04:07,575 --> 00:04:09,950 And being on the second floor was too much communication. 98 00:04:09,950 --> 00:04:12,680 EARLL MURMAN: So now you can see the whole value stream. 99 00:04:12,680 --> 00:04:14,758 CLAUDIO GELMAN: And I'll show you later, 100 00:04:14,758 --> 00:04:16,300 from a management point of view, they 101 00:04:16,300 --> 00:04:19,540 built it to have a value stream where the beginning and the end 102 00:04:19,540 --> 00:04:20,089 meet. 103 00:04:20,089 --> 00:04:23,090 It's extremely powerful. 104 00:04:23,090 --> 00:04:26,520 So square footage, I think, is close to 30% reduction. 105 00:04:26,520 --> 00:04:27,770 It's a work in process. 106 00:04:27,770 --> 00:04:33,290 Like I said, 98%, so it's incredible. 107 00:04:33,290 --> 00:04:35,720 So how did we do that? 108 00:04:35,720 --> 00:04:40,130 Part of lean, there are two basic concepts, takt time, 109 00:04:40,130 --> 00:04:45,100 which is flow based on our capacity of the value stream 110 00:04:45,100 --> 00:04:46,600 and availability. 111 00:04:46,600 --> 00:04:50,290 It's a takt time of 25, 22 and 1/2 seconds, which 112 00:04:50,290 --> 00:04:52,210 means that it's a frequency. 113 00:04:52,210 --> 00:04:54,052 Takt time is a frequency of delivery, 114 00:04:54,052 --> 00:04:55,510 so at the end of the line, you will 115 00:04:55,510 --> 00:04:57,420 see a shoe leaving every 22. 116 00:04:57,420 --> 00:04:59,170 EARLL MURMAN: Or a pair of shoes every 45. 117 00:04:59,170 --> 00:05:00,295 CLAUDIO GELMAN: Absolutely. 118 00:05:00,295 --> 00:05:03,210 So that's the concept of the takt time and flow, 119 00:05:03,210 --> 00:05:06,400 and the other concept is of waste. 120 00:05:06,400 --> 00:05:10,180 Actually, we have a course we call waste detectives, where 121 00:05:10,180 --> 00:05:12,490 we put our associates through and identify, 122 00:05:12,490 --> 00:05:14,720 what is a way in the lean world-- 123 00:05:14,720 --> 00:05:17,380 EARLL MURMAN: Is every associate a waste detective? 124 00:05:17,380 --> 00:05:19,172 CLAUDIO GELMAN: Yes, that's where they are. 125 00:05:19,172 --> 00:05:22,190 Everyone here becomes a waste detective. 126 00:05:22,190 --> 00:05:23,620 I have a poster, very interesting, 127 00:05:23,620 --> 00:05:27,490 that I like to use for tours and also for educational purposes, 128 00:05:27,490 --> 00:05:31,090 where in the lean world, they are like the deadly wastes. 129 00:05:31,090 --> 00:05:35,380 And they are-- I'll go through with you-- overproduction, 130 00:05:35,380 --> 00:05:38,860 when we produce ahead, waiting, and this is very interesting. 131 00:05:38,860 --> 00:05:40,840 There are some interesting pictures, 132 00:05:40,840 --> 00:05:44,560 with associates participating in them, of the examples. 133 00:05:44,560 --> 00:05:46,630 Transportation, overprocessing. 134 00:05:46,630 --> 00:05:48,850 EARLL MURMAN: So just on the waiting, for example, 135 00:05:48,850 --> 00:05:51,400 eight days with 23 minutes of value 136 00:05:51,400 --> 00:05:53,363 added, there was a lot of waiting. 137 00:05:53,363 --> 00:05:55,280 CLAUDIO GELMAN: Yes, and it used to be normal. 138 00:05:55,280 --> 00:05:56,170 Now, it's-- 139 00:05:56,170 --> 00:05:58,628 EARLL MURMAN: On transportation, you had two floors before. 140 00:05:58,628 --> 00:05:59,753 CLAUDIO GELMAN: Absolutely. 141 00:05:59,753 --> 00:06:00,640 EARLL MURMAN: OK. 142 00:06:00,640 --> 00:06:02,140 CLAUDIO GELMAN: Overprocessing, this 143 00:06:02,140 --> 00:06:05,140 is a interesting way that people sometimes have to understand. 144 00:06:05,140 --> 00:06:08,740 In this particular case, this shoe, 145 00:06:08,740 --> 00:06:10,870 it needs a row of stitching at the bottom. 146 00:06:10,870 --> 00:06:12,302 Now, they put two. 147 00:06:12,302 --> 00:06:14,260 People may think, well, two is better than one. 148 00:06:14,260 --> 00:06:15,550 No, it's not. 149 00:06:15,550 --> 00:06:18,490 The shoe needs one, but sometimes, we tend to add two. 150 00:06:18,490 --> 00:06:20,860 Like maybe three coats of paint when two was enough. 151 00:06:20,860 --> 00:06:21,550 EARLL MURMAN: Oh, very interesting. 152 00:06:21,550 --> 00:06:22,220 CLAUDIO GELMAN: So we look into that. 153 00:06:22,220 --> 00:06:23,445 EARLL MURMAN: Yeah. 154 00:06:23,445 --> 00:06:24,820 CLAUDIO GELMAN: Excess inventory. 155 00:06:24,820 --> 00:06:25,360 EARLL MURMAN: Yep. 156 00:06:25,360 --> 00:06:26,277 CLAUDIO GELMAN: Waste. 157 00:06:26,277 --> 00:06:27,703 I mean, interesting, assets seems 158 00:06:27,703 --> 00:06:28,870 to be in the balance sheets. 159 00:06:28,870 --> 00:06:29,320 EARLL MURMAN: And we'll see this-- 160 00:06:29,320 --> 00:06:29,940 CLAUDIO GELMAN: [INAUDIBLE] 161 00:06:29,940 --> 00:06:30,910 EARLL MURMAN: We'll see this as soon as we 162 00:06:30,910 --> 00:06:32,215 start the value stream walk. 163 00:06:32,215 --> 00:06:33,340 CLAUDIO GELMAN: Absolutely. 164 00:06:33,340 --> 00:06:35,920 Actually, this is the first part of the cutting department. 165 00:06:35,920 --> 00:06:38,400 Unnecessary motion, safety has a lot to do with here. 166 00:06:38,400 --> 00:06:40,150 Here, you have an associate placing a shoe 167 00:06:40,150 --> 00:06:43,360 and overstretching, very different from getting closer 168 00:06:43,360 --> 00:06:45,280 to an associate. 169 00:06:45,280 --> 00:06:46,660 And defects. 170 00:06:46,660 --> 00:06:50,790 And we added an eight, which is unused associate creativity. 171 00:06:50,790 --> 00:06:51,790 EARLL MURMAN: Wonderful. 172 00:06:51,790 --> 00:06:53,680 CLAUDIO GELMAN: It's wonderful. 173 00:06:53,680 --> 00:06:58,060 What we've all been trained here is that, as we walk the floor, 174 00:06:58,060 --> 00:06:59,320 we do analysis. 175 00:06:59,320 --> 00:07:02,828 We are trying to identify this waste. 176 00:07:02,828 --> 00:07:04,120 We see somebody overstretching. 177 00:07:04,120 --> 00:07:05,200 It's motion. 178 00:07:05,200 --> 00:07:06,730 We see somebody waiting. 179 00:07:06,730 --> 00:07:10,660 So whenever we see this waste, we 180 00:07:10,660 --> 00:07:13,630 put together a continuous improvement activity. 181 00:07:13,630 --> 00:07:15,260 They call this an activity. 182 00:07:15,260 --> 00:07:18,820 So the whole goal is reduce waste, improve flow. 183 00:07:18,820 --> 00:07:20,323 Reduce waste, improve flow. 184 00:07:20,323 --> 00:07:22,240 EARLL MURMAN: I want to see your value stream. 185 00:07:22,240 --> 00:07:22,700 Can we get started? 186 00:07:22,700 --> 00:07:23,230 CLAUDIO GELMAN: Let's start it, then. 187 00:07:23,230 --> 00:07:23,644 EARLL MURMAN: OK. 188 00:07:23,644 --> 00:07:24,058 CLAUDIO GELMAN: Absolutely. 189 00:07:24,058 --> 00:07:25,300 EARLL MURMAN: Wonderful. 190 00:07:25,300 --> 00:07:28,992 CLAUDIO GELMAN: This is the beginning of the value stream. 191 00:07:28,992 --> 00:07:31,450 EARLL MURMAN: So this is the front end of your value stream 192 00:07:31,450 --> 00:07:31,910 here? 193 00:07:31,910 --> 00:07:33,490 CLAUDIO GELMAN: This is the front end of our value stream. 194 00:07:33,490 --> 00:07:35,020 EARLL MURMAN: And you don't call this a department. 195 00:07:35,020 --> 00:07:36,100 You call it a value stream. 196 00:07:36,100 --> 00:07:36,820 CLAUDIO GELMAN: The value stream. 197 00:07:36,820 --> 00:07:39,190 The definition is the value stream is a series 198 00:07:39,190 --> 00:07:44,200 of operations put in sequence-- we call it a cell-- 199 00:07:44,200 --> 00:07:46,703 to make a particular product. 200 00:07:46,703 --> 00:07:48,120 It doesn't have to be one product. 201 00:07:48,120 --> 00:07:49,990 It can two products, three products, 202 00:07:49,990 --> 00:07:52,300 but there is some similar operations. 203 00:07:52,300 --> 00:07:53,550 And then you can connect them. 204 00:07:53,550 --> 00:07:54,258 EARLL MURMAN: OK. 205 00:07:54,258 --> 00:07:56,710 Now in a little bit bigger sense, 206 00:07:56,710 --> 00:07:59,656 your value stream goes all the way back to your suppliers 207 00:07:59,656 --> 00:08:03,167 and eventually out to your stores and so on, 208 00:08:03,167 --> 00:08:05,000 but we're looking just at the value stream-- 209 00:08:05,000 --> 00:08:05,800 CLAUDIO GELMAN: Absolutely. 210 00:08:05,800 --> 00:08:06,580 EARLL MURMAN: --starting with what's 211 00:08:06,580 --> 00:08:07,405 coming from the suppliers. 212 00:08:07,405 --> 00:08:08,988 And maybe at the end, we'll see what's 213 00:08:08,988 --> 00:08:10,150 going out to your stores. 214 00:08:10,150 --> 00:08:10,630 CLAUDIO GELMAN: Correct. 215 00:08:10,630 --> 00:08:12,580 And as a concept of value stream issues 216 00:08:12,580 --> 00:08:14,770 within a cell in manufacturing, the [? concept ?] 217 00:08:14,770 --> 00:08:17,200 is also true for the whole corporation, 218 00:08:17,200 --> 00:08:20,170 whether we are, let's say, a purchasing department. 219 00:08:20,170 --> 00:08:24,120 It would be a department part of the whole corporation's value 220 00:08:24,120 --> 00:08:25,420 stream, so you are correct. 221 00:08:25,420 --> 00:08:27,153 EARLL MURMAN: Yeah. 222 00:08:27,153 --> 00:08:29,320 CLAUDIO GELMAN: So what you see here is the cutting. 223 00:08:29,320 --> 00:08:33,220 That's the first operation, and basically, materials 224 00:08:33,220 --> 00:08:35,350 are coming from our suppliers. 225 00:08:35,350 --> 00:08:37,090 They come in in rolls. 226 00:08:37,090 --> 00:08:39,400 They go to the consolidation center 227 00:08:39,400 --> 00:08:43,590 and then pull based on the demand and the production 228 00:08:43,590 --> 00:08:44,090 schedule. 229 00:08:44,090 --> 00:08:45,507 EARLL MURMAN: So this value stream 230 00:08:45,507 --> 00:08:46,610 pulls based on its demand. 231 00:08:46,610 --> 00:08:48,160 CLAUDIO GELMAN: Exactly, exactly. 232 00:08:48,160 --> 00:08:52,120 And the materials are layered, and we 233 00:08:52,120 --> 00:08:53,548 build what we call a web. 234 00:08:53,548 --> 00:08:54,424 EARLL MURMAN: OK. 235 00:08:54,424 --> 00:08:55,658 I can see it's stapled. 236 00:08:55,658 --> 00:08:56,700 It's stapled right there. 237 00:08:56,700 --> 00:08:58,090 CLAUDIO GELMAN: Exactly. 238 00:08:58,090 --> 00:09:00,643 How much is a given to the cutter its based-- 239 00:09:00,643 --> 00:09:02,060 so we have a computer system that, 240 00:09:02,060 --> 00:09:05,080 based on the schedule, the number of pairs, 241 00:09:05,080 --> 00:09:08,620 the size, and the width, puts out how many pairs we need 242 00:09:08,620 --> 00:09:15,100 and then how much square footage to give to the cutter. 243 00:09:15,100 --> 00:09:18,165 EARLL MURMAN: How frequently you make that calculation? 244 00:09:18,165 --> 00:09:19,790 CLAUDIO GELMAN: Well, it's per quarter. 245 00:09:19,790 --> 00:09:20,630 Like, daily. 246 00:09:20,630 --> 00:09:21,050 EARLL MURMAN: Daily? 247 00:09:21,050 --> 00:09:21,967 CLAUDIO GELMAN: Daily. 248 00:09:21,967 --> 00:09:24,755 Daily, and right now with the different materials, almost 249 00:09:24,755 --> 00:09:27,393 any calculation, we deliver 45 hours worth of material. 250 00:09:27,393 --> 00:09:29,560 EARLL MURMAN: So that's kind of like adjusting time. 251 00:09:29,560 --> 00:09:32,930 CLAUDIO GELMAN: Absolutely, absolutely. 252 00:09:32,930 --> 00:09:35,660 So the cutter will pick up what's 253 00:09:35,660 --> 00:09:40,610 called a die, which has the shape of the part, 254 00:09:40,610 --> 00:09:45,710 with the hydraulic machine and place the die on the material. 255 00:09:45,710 --> 00:09:47,529 The placement of the die is called nesting. 256 00:09:47,529 --> 00:09:48,446 EARLL MURMAN: Nesting. 257 00:09:48,446 --> 00:09:49,672 OK. 258 00:09:49,672 --> 00:09:51,380 You're trying to minimize waste, I guess. 259 00:09:51,380 --> 00:09:53,260 CLAUDIO GELMAN: Exactly, it's like a puzzle. 260 00:09:53,260 --> 00:09:56,450 Cutters may take from three months to six months 261 00:09:56,450 --> 00:10:01,790 to get good at it, not only to understand where the die goes, 262 00:10:01,790 --> 00:10:06,940 but also make it with speed because talk about speed. 263 00:10:06,940 --> 00:10:09,800 Let me talk a bit of a key concept, which 264 00:10:09,800 --> 00:10:12,270 is the concept of takt time. 265 00:10:12,270 --> 00:10:18,080 In the lean world, the goal is to flow and to reduce waste, 266 00:10:18,080 --> 00:10:20,210 flow and to reduce waste. 267 00:10:20,210 --> 00:10:22,970 Based on the demand in this value stream, 268 00:10:22,970 --> 00:10:26,150 which is 50 cases a day, a case being 12 pairs, 269 00:10:26,150 --> 00:10:27,500 and available time per day-- 270 00:10:27,500 --> 00:10:28,520 EARLL MURMAN: That's 600 pairs a day 271 00:10:28,520 --> 00:10:29,730 that this value stream puts out? 272 00:10:29,730 --> 00:10:31,550 CLAUDIO GELMAN: [INAUDIBLE] specifically. 273 00:10:31,550 --> 00:10:35,240 And seven and a half hours in a shift. 274 00:10:35,240 --> 00:10:40,220 The frequency of output is 22 and 1/2 seconds per shoe. 275 00:10:40,220 --> 00:10:42,332 That frequency is called takt time. 276 00:10:42,332 --> 00:10:43,040 EARLL MURMAN: OK. 277 00:10:43,040 --> 00:10:45,373 CLAUDIO GELMAN: Takt time. 278 00:10:45,373 --> 00:10:47,540 Now, although I just mentioned that the frequency is 279 00:10:47,540 --> 00:10:52,460 22 and 1/2 seconds per shoe, at this stage, 280 00:10:52,460 --> 00:10:55,910 because of the characteristics of the operation, 281 00:10:55,910 --> 00:10:59,370 we are not flowing one shoe at a time. 282 00:10:59,370 --> 00:11:01,800 We are still in a batch world. 283 00:11:01,800 --> 00:11:04,210 EARLL MURMAN: OK, but a small batch? 284 00:11:04,210 --> 00:11:05,830 CLAUDIO GELMAN: Small batches. 285 00:11:05,830 --> 00:11:10,160 In the past, as I said before, when our lead time was eight 286 00:11:10,160 --> 00:11:14,540 days, in an equivalent value stream, 287 00:11:14,540 --> 00:11:17,840 we will have close to 400 cases of [INAUDIBLE].. 288 00:11:17,840 --> 00:11:18,560 EARLL MURMAN: OK. 289 00:11:18,560 --> 00:11:21,160 CLAUDIO GELMAN: Now, with the lead time of three hours, 290 00:11:21,160 --> 00:11:25,210 our work in process is 20, 25 cases. 291 00:11:25,210 --> 00:11:26,875 That's a reduction of 98%. 292 00:11:26,875 --> 00:11:29,250 EARLL MURMAN: So I see a little green thing on the floor, 293 00:11:29,250 --> 00:11:32,660 and the visual control says cutting whip, seven cases 294 00:11:32,660 --> 00:11:33,160 maximum. 295 00:11:33,160 --> 00:11:34,308 CLAUDIO GELMAN: Absolutely. 296 00:11:34,308 --> 00:11:36,350 EARLL MURMAN: So that's all the space you've got. 297 00:11:36,350 --> 00:11:42,090 CLAUDIO GELMAN: So the cutters will cut the individual parts 298 00:11:42,090 --> 00:11:44,100 based on the material, and they will be 299 00:11:44,100 --> 00:11:46,870 placing the parts on the bins. 300 00:11:46,870 --> 00:11:47,650 EARLL MURMAN: OK. 301 00:11:47,650 --> 00:11:49,442 CLAUDIO GELMAN: When they finish the hour-- 302 00:11:49,442 --> 00:11:53,920 so here, the unit of flow-- 303 00:11:53,920 --> 00:11:55,570 you can call it an hour-- 304 00:11:55,570 --> 00:11:59,602 could be between six and seven cases, depending on the style. 305 00:11:59,602 --> 00:12:00,310 EARLL MURMAN: OK. 306 00:12:00,310 --> 00:12:03,520 So while we're here, I see a broom hanging up there, 307 00:12:03,520 --> 00:12:05,620 so I want to just ask you about 5S. 308 00:12:05,620 --> 00:12:08,650 CLAUDIO GELMAN: 5S, actually, it's very typical. 309 00:12:08,650 --> 00:12:14,680 5S is a system or an organization. 310 00:12:14,680 --> 00:12:18,200 5S is for Sort, Sitting Order, Shine, Standardize, 311 00:12:18,200 --> 00:12:19,090 and Sustain. 312 00:12:19,090 --> 00:12:22,570 And it's much more than just cleaning. 313 00:12:22,570 --> 00:12:26,530 Once you understand the 5S, there are economics in place, 314 00:12:26,530 --> 00:12:31,480 and there is a very key location of parts. 315 00:12:31,480 --> 00:12:33,880 This is the first system implemented five years ago. 316 00:12:33,880 --> 00:12:35,422 EARLL MURMAN: I was going to ask you. 317 00:12:35,422 --> 00:12:37,180 It's hard for me almost to imagine a place 318 00:12:37,180 --> 00:12:38,690 where it wouldn't naturally be 5S, 319 00:12:38,690 --> 00:12:40,830 but you had to start with 5S. 320 00:12:40,830 --> 00:12:44,790 CLAUDIO GELMAN: Exactly, because one of, I think, the mistakes 321 00:12:44,790 --> 00:12:46,830 is thinking that 5S is just cleaning. 322 00:12:46,830 --> 00:12:48,292 So everybody understands cleaning, 323 00:12:48,292 --> 00:12:49,500 and there's so much to clean. 324 00:12:49,500 --> 00:12:51,408 And when you're starting a new process, 325 00:12:51,408 --> 00:12:53,200 you can get so many gains by just cleaning. 326 00:12:53,200 --> 00:12:55,630 It looks good, but there's much more to it. 327 00:12:55,630 --> 00:12:58,650 But the broom in that place with the label that says broom, 328 00:12:58,650 --> 00:12:59,310 that's been-- 329 00:12:59,310 --> 00:13:01,260 EARLL MURMAN: It becomes part of your organizing your self. 330 00:13:01,260 --> 00:13:03,218 CLAUDIO GELMAN: Absolutely, and it goes deeper. 331 00:13:03,218 --> 00:13:08,220 I think that 5S is actually a reflection of leadership. 332 00:13:08,220 --> 00:13:13,250 If you cannot get an organized workplace and clean, 333 00:13:13,250 --> 00:13:17,370 your chances of flowing product and meeting that takt time are 334 00:13:17,370 --> 00:13:20,020 very slim, so it has to do with the discipline. 335 00:13:20,020 --> 00:13:22,822 It's much deeper than that, than just cleaning. 336 00:13:22,822 --> 00:13:23,530 EARLL MURMAN: OK. 337 00:13:31,220 --> 00:13:34,180 CLAUDIO GELMAN: So this is a cutting department. 338 00:13:34,180 --> 00:13:36,610 About seven cases now, and we're going 339 00:13:36,610 --> 00:13:39,588 to walk to the next department is called the prefit department 340 00:13:39,588 --> 00:13:40,630 part of the value stream. 341 00:13:40,630 --> 00:13:42,010 EARLL MURMAN: It looks like the second part of the value 342 00:13:42,010 --> 00:13:42,130 stream. 343 00:13:42,130 --> 00:13:44,200 CLAUDIO GELMAN: It's the second thing in the value stream. 344 00:13:44,200 --> 00:13:44,800 EARLL MURMAN: You got the cutting. 345 00:13:44,800 --> 00:13:46,092 Now we're going to do stitches. 346 00:13:46,092 --> 00:13:47,130 CLAUDIO GELMAN: Exactly. 347 00:13:47,130 --> 00:13:49,320 The prefit is a shoe-making technique. 348 00:13:49,320 --> 00:13:51,780 Many years ago when we didn't have computers, 349 00:13:51,780 --> 00:13:55,290 the way a shoe was stitched is it used to be fitted, 350 00:13:55,290 --> 00:13:58,320 two parts coming together, and a very skillful stitcher 351 00:13:58,320 --> 00:13:59,730 would put it together. 352 00:13:59,730 --> 00:14:04,620 Before you're able to prefit and stitch it, we fit it. 353 00:14:04,620 --> 00:14:07,525 It needs to be prefitted, which is you do marking. 354 00:14:07,525 --> 00:14:08,560 You do embroidery. 355 00:14:08,560 --> 00:14:11,050 You do other things before you put the shoe together. 356 00:14:11,050 --> 00:14:13,240 That's where the name comes from, prefit. 357 00:14:13,240 --> 00:14:16,960 So we do embroidery with the logo. 358 00:14:16,960 --> 00:14:19,012 EARLL MURMAN: That's where the NB comes on. 359 00:14:19,012 --> 00:14:22,140 CLAUDIO GELMAN: Our main USA logo is there. 360 00:14:22,140 --> 00:14:26,700 And then you will see a series of miscellaneous operations 361 00:14:26,700 --> 00:14:29,130 that are required to make a shoe, for example, 362 00:14:29,130 --> 00:14:31,530 the reinforcement of the tip. 363 00:14:31,530 --> 00:14:32,740 I talked about embroidery. 364 00:14:32,740 --> 00:14:34,140 Some styles take embroidery. 365 00:14:34,140 --> 00:14:36,370 Others do not. 366 00:14:36,370 --> 00:14:40,050 Here, we have a machine called [INAUDIBLE],, a radio frequency 367 00:14:40,050 --> 00:14:40,560 machine. 368 00:14:40,560 --> 00:14:43,150 It's not being operated right now, but as an example, 369 00:14:43,150 --> 00:14:45,795 this is the part that will make these [? decals. ?] 370 00:14:45,795 --> 00:14:50,680 It's a nice feature because it's nice what it's going to do. 371 00:14:50,680 --> 00:14:52,090 Again, some cells have it. 372 00:14:52,090 --> 00:14:53,560 Some cells do not. 373 00:14:53,560 --> 00:14:56,650 And if he go through the team, you'll 374 00:14:56,650 --> 00:14:59,350 see associates making other miscellaneous operations 375 00:14:59,350 --> 00:15:01,760 to the parts of the shoe. 376 00:15:01,760 --> 00:15:04,650 EARLL MURMAN: You have the flow of material start over there, 377 00:15:04,650 --> 00:15:05,230 goes to the-- 378 00:15:05,230 --> 00:15:07,890 CLAUDIO GELMAN: So we go cutting, prefit. 379 00:15:07,890 --> 00:15:09,750 Well, let's go to the computer stitching, 380 00:15:09,750 --> 00:15:15,320 and we'll see some stitching and then eventually the assembly, 381 00:15:15,320 --> 00:15:16,675 where they put the sole on. 382 00:15:16,675 --> 00:15:18,800 EARLL MURMAN: So if things are getting a little out 383 00:15:18,800 --> 00:15:22,670 of sequence, timing-wise, could someone from here 384 00:15:22,670 --> 00:15:25,155 go over and help the prefit people? 385 00:15:25,155 --> 00:15:26,780 CLAUDIO GELMAN: It's a very good point. 386 00:15:26,780 --> 00:15:29,600 When we changed from the batch and queue world 387 00:15:29,600 --> 00:15:32,690 to the lean world, we changed the management system. 388 00:15:32,690 --> 00:15:36,510 In the past, you have associates and supervisors, 389 00:15:36,510 --> 00:15:37,910 nobody in the middle. 390 00:15:37,910 --> 00:15:42,820 In order to support that takt time of 22 and 1/2 seconds 391 00:15:42,820 --> 00:15:45,945 and maintain that flow, now we changed the system 392 00:15:45,945 --> 00:15:47,320 where we have the supervisors, we 393 00:15:47,320 --> 00:15:49,780 have the team leaders, and then the associates. 394 00:15:49,780 --> 00:15:53,650 So team leaders fill in if there is a disruption of any kind, 395 00:15:53,650 --> 00:15:58,150 a bathroom break to a phone call to a quality issue. 396 00:15:58,150 --> 00:16:00,420 They will jump in to maintain the flow. 397 00:16:00,420 --> 00:16:01,130 EARLL MURMAN: The team leader will? 398 00:16:01,130 --> 00:16:01,420 CLAUDIO GELMAN: Absolutely. 399 00:16:01,420 --> 00:16:03,545 EARLL MURMAN: So the team leader can do everything? 400 00:16:03,545 --> 00:16:05,350 CLAUDIO GELMAN: Absolutely, yes. 401 00:16:05,350 --> 00:16:10,510 So still, in this team and the prefit, we have batches. 402 00:16:10,510 --> 00:16:13,930 The parts are prefitted. 403 00:16:13,930 --> 00:16:16,160 We put a reinforcement to the toe 404 00:16:16,160 --> 00:16:17,410 and make a little [INAUDIBLE]. 405 00:16:17,410 --> 00:16:19,017 EARLL MURMAN: OK. 406 00:16:19,017 --> 00:16:20,600 CLAUDIO GELMAN: These associates, they 407 00:16:20,600 --> 00:16:22,970 are making little holes on the part. 408 00:16:22,970 --> 00:16:26,050 They put them back on those bins that we talked before 409 00:16:26,050 --> 00:16:30,340 and brought [INAUDIBLE] batch to this department that's 410 00:16:30,340 --> 00:16:31,830 called computer stitching. 411 00:16:31,830 --> 00:16:32,600 EARLL MURMAN: Computer stitching. 412 00:16:32,600 --> 00:16:34,892 CLAUDIO GELMAN: So what I'm going to show you right now 413 00:16:34,892 --> 00:16:42,920 are stitching machines, but they have a computer and cameras. 414 00:16:42,920 --> 00:16:46,280 And the way it works, you'll see an associate picking 415 00:16:46,280 --> 00:16:48,105 these kinds of parts, put them on what's 416 00:16:48,105 --> 00:16:52,720 called a pallet, these little holes that you put on pins. 417 00:16:52,720 --> 00:16:57,050 And they probably will be fed into this machine, 418 00:16:57,050 --> 00:17:01,960 and you have lights taking pictures and a computer. 419 00:17:01,960 --> 00:17:05,030 And it's taking a picture three frames per second, 420 00:17:05,030 --> 00:17:07,599 so the cameras tell the computer, this is the edge. 421 00:17:07,599 --> 00:17:10,300 And the computer tells the sewing machine 422 00:17:10,300 --> 00:17:11,986 where to put the stitch. 423 00:17:11,986 --> 00:17:12,720 EARLL MURMAN: OK. 424 00:17:12,720 --> 00:17:13,452 OK. 425 00:17:13,452 --> 00:17:15,660 CLAUDIO GELMAN: At this computer stitching department 426 00:17:15,660 --> 00:17:19,069 is where we transition from the batch to the flow, 427 00:17:19,069 --> 00:17:20,819 and that's what I'm going to show you now. 428 00:17:20,819 --> 00:17:22,728 EARLL MURMAN: OK, great. 429 00:17:22,728 --> 00:17:24,270 CLAUDIO GELMAN: This associate here-- 430 00:17:24,270 --> 00:17:25,687 I forgot to mention when we talked 431 00:17:25,687 --> 00:17:28,604 about the different management system, remember takt time 432 00:17:28,604 --> 00:17:30,030 and flow. 433 00:17:30,030 --> 00:17:31,860 Supervisor and team leader to help, 434 00:17:31,860 --> 00:17:36,220 but also, we want associates to be on the line producing 435 00:17:36,220 --> 00:17:38,010 the shoes at that takt time. 436 00:17:38,010 --> 00:17:40,764 So another level is called the point of use. 437 00:17:40,764 --> 00:17:42,253 EARLL MURMAN: OK. 438 00:17:42,253 --> 00:17:43,920 CLAUDIO GELMAN: The goal of point of use 439 00:17:43,920 --> 00:17:47,100 is to bring the parts to-- 440 00:17:47,100 --> 00:17:47,940 EARLL MURMAN: OK. 441 00:17:47,940 --> 00:17:50,190 CLAUDIO GELMAN: --the operators, actually adding value 442 00:17:50,190 --> 00:17:50,870 to the shoe. 443 00:17:50,870 --> 00:17:52,620 EARLL MURMAN: So this lady's a point of use associate? 444 00:17:52,620 --> 00:17:53,520 CLAUDIO GELMAN: That's correct, a point of use associate. 445 00:17:53,520 --> 00:17:54,690 EARLL MURMAN: She looks pretty busy, too. 446 00:17:54,690 --> 00:17:55,920 CLAUDIO GELMAN: Very busy. 447 00:17:55,920 --> 00:17:59,370 They have to distribute a case every nine minutes, 448 00:17:59,370 --> 00:18:03,340 and they have the flow from this computer stitching 449 00:18:03,340 --> 00:18:06,990 to the next department and come back and flow. 450 00:18:06,990 --> 00:18:08,310 Everything is about flow. 451 00:18:08,310 --> 00:18:09,300 EARLL MURMAN: So you want to keep 452 00:18:09,300 --> 00:18:11,400 this person-- you want to have everything she needs 453 00:18:11,400 --> 00:18:12,525 to do what she needs to do. 454 00:18:12,525 --> 00:18:15,570 CLAUDIO GELMAN: Exactly, exactly. 455 00:18:15,570 --> 00:18:18,270 In the past world, this person would leave the machine, 456 00:18:18,270 --> 00:18:21,410 would go and pick up the parts, come back. 457 00:18:21,410 --> 00:18:24,900 A lot of variability in the system, and reduction of waste 458 00:18:24,900 --> 00:18:27,122 is to reduce variability at the same time. 459 00:18:27,122 --> 00:18:29,580 EARLL MURMAN: They must have to work very closely together. 460 00:18:29,580 --> 00:18:31,230 CLAUDIO GELMAN: Yes, absolutely. 461 00:18:31,230 --> 00:18:34,360 So here, you have the computer stitching machine. 462 00:18:34,360 --> 00:18:39,880 These are the parts that came from the cutting, 463 00:18:39,880 --> 00:18:44,807 and the associate puts the parts on this pallet. 464 00:18:44,807 --> 00:18:45,890 It's fed into the machine. 465 00:18:45,890 --> 00:18:46,070 EARLL MURMAN: OK. 466 00:18:46,070 --> 00:18:47,570 Goes back in the machine. 467 00:18:47,570 --> 00:18:50,138 CLAUDIO GELMAN: You got the cameras taking pictures. 468 00:18:50,138 --> 00:18:51,680 EARLL MURMAN: And now it's stitching. 469 00:18:51,680 --> 00:18:53,555 CLAUDIO GELMAN: And then the sewing machine's 470 00:18:53,555 --> 00:18:55,704 stitching where the computers tell them to stitch. 471 00:19:01,030 --> 00:19:01,990 The pallet comes up. 472 00:19:07,300 --> 00:19:08,230 Here, we got the part. 473 00:19:08,230 --> 00:19:08,938 EARLL MURMAN: OK. 474 00:19:11,960 --> 00:19:14,450 CLAUDIO GELMAN: Now, why only three parts? 475 00:19:14,450 --> 00:19:19,880 It's because under the takt time of 22 and 1/2 seconds, that's 476 00:19:19,880 --> 00:19:22,490 all that fits in this machine. 477 00:19:22,490 --> 00:19:27,620 So we take all the time that is required to stitch a shoe. 478 00:19:27,620 --> 00:19:29,228 We divide it by 22 and 1/2 seconds, 479 00:19:29,228 --> 00:19:30,770 and that tells us how many associates 480 00:19:30,770 --> 00:19:32,780 we need to put to flow. 481 00:19:32,780 --> 00:19:35,750 EARLL MURMAN: Now, when you switched to the takt time 482 00:19:35,750 --> 00:19:38,300 approach, did you have to redesign some of these machines 483 00:19:38,300 --> 00:19:38,930 to-- 484 00:19:38,930 --> 00:19:40,368 CLAUDIO GELMAN: Completely. 485 00:19:40,368 --> 00:19:40,910 In the past-- 486 00:19:40,910 --> 00:19:42,950 EARLL MURMAN: The old machines couldn't fit the takt time? 487 00:19:42,950 --> 00:19:43,460 CLAUDIO GELMAN: I'm sorry. 488 00:19:43,460 --> 00:19:44,360 The machines are OK. 489 00:19:44,360 --> 00:19:46,318 We have to change the thinking of the designing 490 00:19:46,318 --> 00:19:47,090 of the pallets. 491 00:19:47,090 --> 00:19:49,670 In the past in the batch and queue world, 492 00:19:49,670 --> 00:19:52,850 we were very proud when we could put as many layers as possible 493 00:19:52,850 --> 00:19:53,830 to save machinery. 494 00:19:53,830 --> 00:19:54,703 EARLL MURMAN: OK. 495 00:19:54,703 --> 00:19:56,870 CLAUDIO GELMAN: The goal was the machine efficiency. 496 00:19:56,870 --> 00:19:57,350 EARLL MURMAN: Great. 497 00:19:57,350 --> 00:19:59,475 CLAUDIO GELMAN: Because you get rewarded in a batch 498 00:19:59,475 --> 00:20:01,250 world for machine efficiency. 499 00:20:01,250 --> 00:20:03,750 Right now, the goal is into efficiency 500 00:20:03,750 --> 00:20:05,282 and associate [? tool ?] safety. 501 00:20:05,282 --> 00:20:05,990 EARLL MURMAN: OK. 502 00:20:05,990 --> 00:20:07,580 CLAUDIO GELMAN: So what we did is now 503 00:20:07,580 --> 00:20:09,810 we don't takt as many layers as we can. 504 00:20:09,810 --> 00:20:12,442 We only put enough layers to maintain flow. 505 00:20:12,442 --> 00:20:14,150 The machines are the same, but the design 506 00:20:14,150 --> 00:20:17,030 of the pallet and the number of parts has changed radically. 507 00:20:17,030 --> 00:20:18,470 EARLL MURMAN: Very good. 508 00:20:18,470 --> 00:20:22,100 And did the associates participate in that redesign? 509 00:20:22,100 --> 00:20:23,392 CLAUDIO GELMAN: Oh, absolutely. 510 00:20:23,392 --> 00:20:24,860 I mean, that's a great question. 511 00:20:24,860 --> 00:20:26,420 When we talk about the team leaders, 512 00:20:26,420 --> 00:20:29,510 that's one of the major, major changes. 513 00:20:29,510 --> 00:20:32,060 You know, we're reading the books about our associates 514 00:20:32,060 --> 00:20:33,180 are [INAUDIBLE] assets. 515 00:20:33,180 --> 00:20:39,063 And I think we're talking about-- 516 00:20:39,063 --> 00:20:40,730 you know, we're doing great things here, 517 00:20:40,730 --> 00:20:44,600 where associates have a great part 518 00:20:44,600 --> 00:20:49,930 in the problem-solving activity and the design, supervisors 519 00:20:49,930 --> 00:20:53,030 and team leaders consulting all the time. 520 00:20:53,030 --> 00:20:54,870 That's what makes a big, big difference. 521 00:20:54,870 --> 00:20:56,480 But before when we talk about batch, 522 00:20:56,480 --> 00:20:58,250 now you see single [INAUDIBLE] flow. 523 00:20:58,250 --> 00:20:59,705 You have flow. 524 00:20:59,705 --> 00:21:01,330 EARLL MURMAN: So we've got a cell here. 525 00:21:01,330 --> 00:21:02,090 We have a cell. 526 00:21:02,090 --> 00:21:03,798 CLAUDIO GELMAN: You have a cell, exactly. 527 00:21:03,798 --> 00:21:06,985 EARLL MURMAN: I mean, this is a very good graphical realization 528 00:21:06,985 --> 00:21:07,820 of a cell. 529 00:21:07,820 --> 00:21:10,070 You can see it all connected together. 530 00:21:10,070 --> 00:21:11,570 CLAUDIO GELMAN: That's a good point. 531 00:21:11,570 --> 00:21:14,060 This is a good example of flowing, 532 00:21:14,060 --> 00:21:18,037 and we ask them not to have more than two pairs. 533 00:21:18,037 --> 00:21:20,120 EARLL MURMAN: It says right there, two pairs only. 534 00:21:20,120 --> 00:21:21,620 CLAUDIO GELMAN: Two pairs only, yes. 535 00:21:24,190 --> 00:21:26,923 EARLL MURMAN: And you got some visual work instructions here. 536 00:21:26,923 --> 00:21:28,340 CLAUDIO GELMAN: Absolutely, that's 537 00:21:28,340 --> 00:21:30,590 part of the standardized work, where we 538 00:21:30,590 --> 00:21:32,400 define the standardized width. 539 00:21:32,400 --> 00:21:35,220 And visual management is a big part of it, 540 00:21:35,220 --> 00:21:38,595 and if you have more, if I see three pairs, you know, 541 00:21:38,595 --> 00:21:40,595 there's a problem because the associate probably 542 00:21:40,595 --> 00:21:41,810 was having a problem. 543 00:21:41,810 --> 00:21:43,475 The flow coordinator, or the-- we 544 00:21:43,475 --> 00:21:44,870 call the flow coordinator the team leaders. 545 00:21:44,870 --> 00:21:46,120 We calling them flow coordinators. 546 00:21:46,120 --> 00:21:46,630 EARLL MURMAN: Oh, they're flow coordinators. 547 00:21:46,630 --> 00:21:48,230 CLAUDIO GELMAN: Yeah, it's the name we came up with. 548 00:21:48,230 --> 00:21:50,313 EARLL MURMAN: That's much better than team leader, 549 00:21:50,313 --> 00:21:52,200 CLAUDIO GELMAN: Yeah, because their goal is 550 00:21:52,200 --> 00:21:53,540 to maintain the flow, in a way. 551 00:21:53,540 --> 00:21:55,457 EARLL MURMAN: Well, the title flow coordinator 552 00:21:55,457 --> 00:21:57,145 means-- a team leader focuses on them. 553 00:21:57,145 --> 00:21:59,270 The flow coordinator focuses on what they're doing. 554 00:21:59,270 --> 00:22:01,160 CLAUDIO GELMAN: Exactly, exactly. 555 00:22:01,160 --> 00:22:03,185 So visually, if you see three pairs, 556 00:22:03,185 --> 00:22:04,810 the flow coordinator will come and say, 557 00:22:04,810 --> 00:22:06,590 something is not right. 558 00:22:06,590 --> 00:22:09,530 So visually, very powerful. 559 00:22:09,530 --> 00:22:11,930 EARLL MURMAN: So Claudio, I see some little red dots here 560 00:22:11,930 --> 00:22:13,310 where it says, red color label. 561 00:22:13,310 --> 00:22:14,270 What are those for? 562 00:22:14,270 --> 00:22:17,000 CLAUDIO GELMAN: It could be that these machines sometimes 563 00:22:17,000 --> 00:22:20,330 are very sensitive to the shape of the part. 564 00:22:20,330 --> 00:22:23,630 Because you're taking a picture, the part is sort of warped. 565 00:22:23,630 --> 00:22:26,840 It fools the machine, so in shoe-making technology, 566 00:22:26,840 --> 00:22:29,190 it can have a stitch runoff. 567 00:22:29,190 --> 00:22:31,005 So they're searching for a little red dot, 568 00:22:31,005 --> 00:22:33,230 and as it goes by, the flow coordinator 569 00:22:33,230 --> 00:22:36,097 will notice, fix it quickly, and put it back into the line. 570 00:22:36,097 --> 00:22:38,180 EARLL MURMAN: Now, is that something that came out 571 00:22:38,180 --> 00:22:39,618 of an employee suggestion? 572 00:22:39,618 --> 00:22:40,910 CLAUDIO GELMAN: Probably, yeah. 573 00:22:40,910 --> 00:22:43,820 And they like to have that, and they identify it themselves. 574 00:22:43,820 --> 00:22:46,977 At least, the defect is there, but they take ownership. 575 00:22:46,977 --> 00:22:48,310 That's a big thing that changed. 576 00:22:48,310 --> 00:22:50,240 In the past, they were just trying to, 577 00:22:50,240 --> 00:22:53,040 you know-- we have inspectors on the line put in the dots. 578 00:22:53,040 --> 00:22:55,580 Now, defects happen, but now they have ownership. 579 00:22:55,580 --> 00:22:58,300 And we're very proud. 580 00:22:58,300 --> 00:23:04,040 It's really an environment that it's OK to show their mistakes, 581 00:23:04,040 --> 00:23:05,330 and there's no problem. 582 00:23:05,330 --> 00:23:06,500 EARLL MURMAN: And they're happy with that? 583 00:23:06,500 --> 00:23:07,917 CLAUDIO GELMAN: Oh, not a problem. 584 00:23:07,917 --> 00:23:10,850 And interestingly, when we changed from the batch 585 00:23:10,850 --> 00:23:14,250 to the lean, standards are very important. 586 00:23:14,250 --> 00:23:17,722 Standardized work, which is the definition of the best 587 00:23:17,722 --> 00:23:21,050 flow of a product, considering cost, [INAUDIBLE],, economics. 588 00:23:21,050 --> 00:23:22,960 And some people thought, well, if I 589 00:23:22,960 --> 00:23:26,270 have to do always the same, management 590 00:23:26,270 --> 00:23:28,160 was concerned that our associates 591 00:23:28,160 --> 00:23:29,450 would feel like robots. 592 00:23:29,450 --> 00:23:33,590 And the feedback that we got after a few months 593 00:23:33,590 --> 00:23:36,170 of lean implementation is that they 594 00:23:36,170 --> 00:23:39,590 love to know what they have to do, 595 00:23:39,590 --> 00:23:44,060 so management and even human resource's concept 596 00:23:44,060 --> 00:23:46,250 that they would feel like robots was not correct. 597 00:23:46,250 --> 00:23:50,153 And what we're trying to teach them is that instead 598 00:23:50,153 --> 00:23:52,070 of a paradox-- because standardized work tells 599 00:23:52,070 --> 00:23:53,653 you, always have to do the same thing, 600 00:23:53,653 --> 00:23:57,110 but as you do always the same thing, 601 00:23:57,110 --> 00:23:58,900 you have a foundation for problem-solving 602 00:23:58,900 --> 00:24:00,650 and for continuous improvement. 603 00:24:00,650 --> 00:24:05,524 So standardized work is a continuous improvement tool. 604 00:24:05,524 --> 00:24:07,420 It depends how you look at things. 605 00:24:07,420 --> 00:24:09,987 Through that repetition, they will recommend changes. 606 00:24:09,987 --> 00:24:12,070 EARLL MURMAN: That's a really interesting approach 607 00:24:12,070 --> 00:24:15,200 because that makes standardized work be something where you're 608 00:24:15,200 --> 00:24:17,290 always trying to improve it compared to, 609 00:24:17,290 --> 00:24:18,685 now we can forget about it. 610 00:24:18,685 --> 00:24:20,102 CLAUDIO GELMAN: Right, absolutely. 611 00:24:20,102 --> 00:24:21,910 But that's another thing. 612 00:24:21,910 --> 00:24:24,250 Sometimes, we go crazy, and it never stops. 613 00:24:24,250 --> 00:24:25,850 Once you've got the stream rewired 614 00:24:25,850 --> 00:24:28,780 for continuous improvement, it never stops. 615 00:24:28,780 --> 00:24:34,540 Because of management, it really changed radically. 616 00:24:34,540 --> 00:24:39,610 Managers become more teachers and coaches. 617 00:24:39,610 --> 00:24:41,963 Challenges, I think, it's always-- 618 00:24:41,963 --> 00:24:43,380 production managers, we call them, 619 00:24:43,380 --> 00:24:48,370 they always have to have gentle tension. 620 00:24:48,370 --> 00:24:52,150 In my experience of what I read, you will not introduce lean 621 00:24:52,150 --> 00:24:53,650 with that tension. 622 00:24:56,360 --> 00:24:58,040 You know, I read somewhere else. 623 00:24:58,040 --> 00:24:59,900 This is like a pressure cooker. 624 00:24:59,900 --> 00:25:02,030 It's always pressure to just release the pressure. 625 00:25:02,030 --> 00:25:03,020 EARLL MURMAN: Very good analysis. 626 00:25:03,020 --> 00:25:03,330 CLAUDIO GELMAN: OK. 627 00:25:03,330 --> 00:25:04,356 EARLL MURMAN: Great. 628 00:25:04,356 --> 00:25:05,505 Maybe we should move on. 629 00:25:05,505 --> 00:25:06,880 CLAUDIO GELMAN: Yes, so here, you 630 00:25:06,880 --> 00:25:09,710 got the case ready for the next department. 631 00:25:09,710 --> 00:25:11,405 EARLL MURMAN: OK. 632 00:25:11,405 --> 00:25:12,780 CLAUDIO GELMAN: And the case will 633 00:25:12,780 --> 00:25:15,510 be sent to the stitching department, 634 00:25:15,510 --> 00:25:16,920 so I think we should go around. 635 00:25:16,920 --> 00:25:18,270 And I'll show you from the beginning. 636 00:25:18,270 --> 00:25:19,437 EARLL MURMAN: OK, very good. 637 00:25:23,693 --> 00:25:25,610 CLAUDIO GELMAN: We're just going to go around. 638 00:25:25,610 --> 00:25:26,600 EARLL MURMAN: OK, good. 639 00:25:43,930 --> 00:25:45,700 Boy, a lot of visual control here. 640 00:25:45,700 --> 00:25:48,910 CLAUDIO GELMAN: Yes, so I wanted to talk to you about that 641 00:25:48,910 --> 00:25:53,750 before we talk about the stitching cell. 642 00:25:53,750 --> 00:25:55,300 EARLL MURMAN: OK. 643 00:25:55,300 --> 00:25:57,090 CLAUDIO GELMAN: Takt time, flow. 644 00:25:57,090 --> 00:26:03,937 Flow coordinators are required to keep details of-- 645 00:26:03,937 --> 00:26:06,020 you have the exact idea of the plan versus actual, 646 00:26:06,020 --> 00:26:07,742 if there are any deviations. 647 00:26:07,742 --> 00:26:08,450 EARLL MURMAN: OK. 648 00:26:08,450 --> 00:26:10,283 CLAUDIO GELMAN: This is the production board 649 00:26:10,283 --> 00:26:12,710 for the last team that we haven't talked yet, 650 00:26:12,710 --> 00:26:17,540 but if there is negative, they have to put a reason. 651 00:26:17,540 --> 00:26:20,120 In this case, it was waiting for the closing. 652 00:26:20,120 --> 00:26:21,200 Closing happened to be-- 653 00:26:21,200 --> 00:26:22,450 EARLL MURMAN: This is today's? 654 00:26:22,450 --> 00:26:23,700 CLAUDIO GELMAN: This is today. 655 00:26:23,700 --> 00:26:25,624 EARLL MURMAN: So I have five after 8:00, 656 00:26:25,624 --> 00:26:26,970 and this says 7:00 to 8 o'clock. 657 00:26:26,970 --> 00:26:28,910 So immediately, this was filled in. 658 00:26:28,910 --> 00:26:29,200 CLAUDIO GELMAN: Yes. 659 00:26:29,200 --> 00:26:30,650 EARLL MURMAN: Because we're now on this shift here. 660 00:26:30,650 --> 00:26:32,480 CLAUDIO GELMAN: Right, and we'll see what happened. 661 00:26:32,480 --> 00:26:33,188 EARLL MURMAN: OK. 662 00:26:33,188 --> 00:26:34,838 CLAUDIO GELMAN: OK? 663 00:26:34,838 --> 00:26:36,330 Yeah, that's a good observation. 664 00:26:36,330 --> 00:26:41,475 So for supervisors, managers, you come here, 665 00:26:41,475 --> 00:26:43,100 and you know we're waiting for closing. 666 00:26:43,100 --> 00:26:46,070 So the first question I will have, 667 00:26:46,070 --> 00:26:49,190 what happened in closing and the stitching? 668 00:26:49,190 --> 00:26:52,640 You have a board there that then the flow coordinator says, 669 00:26:52,640 --> 00:26:54,720 machine number seven was down for 10 minutes. 670 00:26:54,720 --> 00:26:55,428 EARLL MURMAN: OK. 671 00:26:55,428 --> 00:26:57,740 CLAUDIO GELMAN: Just big picture detail. 672 00:26:57,740 --> 00:26:59,900 On their desk, they have a more detailed log 673 00:26:59,900 --> 00:27:01,275 that will tell them what happened 674 00:27:01,275 --> 00:27:02,870 with that particular machine, but you 675 00:27:02,870 --> 00:27:04,070 see how they're connected. 676 00:27:04,070 --> 00:27:05,320 EARLL MURMAN: Very, very good. 677 00:27:05,320 --> 00:27:07,903 CLAUDIO GELMAN: And it's part of the supervisor and management 678 00:27:07,903 --> 00:27:09,573 to make sure that they make sense. 679 00:27:09,573 --> 00:27:10,490 EARLL MURMAN: Morning. 680 00:27:10,490 --> 00:27:12,220 ROSE MARY MUNOZ: [INAUDIBLE] broken the thread. 681 00:27:12,220 --> 00:27:12,780 Good morning. 682 00:27:12,780 --> 00:27:13,280 How are you? 683 00:27:13,280 --> 00:27:14,140 EARLL MURMAN: Good. 684 00:27:14,140 --> 00:27:15,140 CLAUDIO GELMAN: You see? 685 00:27:15,140 --> 00:27:16,190 They've broken the thread. 686 00:27:16,190 --> 00:27:16,880 ROSE MARY MUNOZ: Broken the thread. 687 00:27:16,880 --> 00:27:17,390 CLAUDIO GELMAN: That's why-- 688 00:27:17,390 --> 00:27:18,210 EARLL MURMAN: Oh, the thread broke? 689 00:27:18,210 --> 00:27:18,720 CLAUDIO GELMAN: The thread broke. 690 00:27:18,720 --> 00:27:19,780 That's what we're talking about. 691 00:27:19,780 --> 00:27:20,590 She knows about it. 692 00:27:20,590 --> 00:27:21,290 ROSE MARY MUNOZ: I told [INAUDIBLE].. 693 00:27:21,290 --> 00:27:21,985 CLAUDIO GELMAN: OK. 694 00:27:21,985 --> 00:27:22,860 EARLL MURMAN: Is she the flow coordinator? 695 00:27:22,860 --> 00:27:24,318 CLAUDIO GELMAN: She's a supervisor, 696 00:27:24,318 --> 00:27:25,460 25 years in the company. 697 00:27:25,460 --> 00:27:25,820 EARLL MURMAN: OK. 698 00:27:25,820 --> 00:27:26,480 CLAUDIO GELMAN: What an asset. 699 00:27:26,480 --> 00:27:27,990 ROSE MARY MUNOZ: That's my team. 700 00:27:27,990 --> 00:27:29,030 EARLL MURMAN: Yeah, so this her team. 701 00:27:29,030 --> 00:27:29,480 ROSE MARY MUNOZ: Uh-huh. 702 00:27:29,480 --> 00:27:31,147 EARLL MURMAN: I saw you're way up there. 703 00:27:31,147 --> 00:27:31,680 [LAUGHTER] 704 00:27:32,690 --> 00:27:35,480 CLAUDIO GELMAN: So like we were talking before, 705 00:27:35,480 --> 00:27:38,090 we talked about the [INAUDIBLE] generation, problem-solving, 706 00:27:38,090 --> 00:27:41,780 involvement, and we have a very simple way 707 00:27:41,780 --> 00:27:46,817 to appreciate the associates. 708 00:27:46,817 --> 00:27:48,650 To talk about interaction between supervisor 709 00:27:48,650 --> 00:27:51,260 and associates, I will introduce to you Rose Mary Munoz. 710 00:27:51,260 --> 00:27:52,890 She's our supervisor-- 711 00:27:52,890 --> 00:27:53,190 EARLL MURMAN: Buenos dias. 712 00:27:53,190 --> 00:27:54,398 ROSE MARY MUNOZ: Buenos dias. 713 00:27:54,398 --> 00:27:54,980 Como estas? 714 00:27:54,980 --> 00:27:56,060 CLAUDIO GELMAN: --in the wide value stream. 715 00:27:56,060 --> 00:27:57,690 She's been with a company 25 years. 716 00:27:57,690 --> 00:27:58,440 EARLL MURMAN: Wow. 717 00:27:58,440 --> 00:28:00,050 CLAUDIO GELMAN: So she's seen a lot 718 00:28:00,050 --> 00:28:04,743 from the batch and queue world to the-- 719 00:28:04,743 --> 00:28:05,660 EARLL MURMAN: It's OK. 720 00:28:05,660 --> 00:28:08,240 CLAUDIO GELMAN: --from the batch and queue world to the lean 721 00:28:08,240 --> 00:28:11,360 world, so any questions you want to ask her, it's-- 722 00:28:11,360 --> 00:28:14,690 EARLL MURMAN: Yeah, Rose Mary, it's 723 00:28:14,690 --> 00:28:16,970 really critical-- in transformation to lean, 724 00:28:16,970 --> 00:28:19,005 the people are really, to me, the key part, 725 00:28:19,005 --> 00:28:19,850 the critical part. 726 00:28:19,850 --> 00:28:20,060 ROSE MARY MUNOZ: Uh-huh. 727 00:28:20,060 --> 00:28:22,140 EARLL MURMAN: And you're a front-line supervisor, 728 00:28:22,140 --> 00:28:23,690 and you have a value stream. 729 00:28:23,690 --> 00:28:26,690 I guess this is a picture of your value stream here. 730 00:28:26,690 --> 00:28:28,040 Yours is the gold value stream. 731 00:28:28,040 --> 00:28:29,040 ROSE MARY MUNOZ: Uh-huh. 732 00:28:29,040 --> 00:28:31,498 EARLL MURMAN: So as supervisor, what are some of the things 733 00:28:31,498 --> 00:28:34,112 that you do when you work with your value stream team? 734 00:28:34,112 --> 00:28:35,570 ROSE MARY MUNOZ: The most important 735 00:28:35,570 --> 00:28:39,830 is to work with the associates because lean 736 00:28:39,830 --> 00:28:46,550 is 90% associates and 10% the rest, material 737 00:28:46,550 --> 00:28:47,870 or maybe supervisor. 738 00:28:47,870 --> 00:28:52,670 They're the most important ones to introduce lean system, 739 00:28:52,670 --> 00:28:54,500 and they understand what they're doing. 740 00:28:54,500 --> 00:28:56,150 That's the most important thing that we 741 00:28:56,150 --> 00:28:58,810 can do to get that [INAUDIBLE]. 742 00:28:58,810 --> 00:29:00,560 EARLL MURMAN: Yeah, Claudio was telling me 743 00:29:00,560 --> 00:29:02,510 that one of the ways you do this is you 744 00:29:02,510 --> 00:29:04,120 get suggestions from them. 745 00:29:04,120 --> 00:29:06,100 You engage them with suggestions. 746 00:29:06,100 --> 00:29:10,678 So Rhea here, she's contributed some kinds of suggestions, 747 00:29:10,678 --> 00:29:12,220 and what happens to those suggestions 748 00:29:12,220 --> 00:29:13,480 when she contributes them? 749 00:29:13,480 --> 00:29:15,022 ROSE MARY MUNOZ: The suggestions they 750 00:29:15,022 --> 00:29:19,200 give, we check if-- we try to implement 751 00:29:19,200 --> 00:29:21,100 all the ideas that they have. 752 00:29:21,100 --> 00:29:24,200 When they give me some idea, we try to implement. 753 00:29:24,200 --> 00:29:27,000 We work with them, and that way they feel more-- 754 00:29:31,230 --> 00:29:32,020 how I can say it? 755 00:29:32,020 --> 00:29:33,187 EARLL MURMAN: More involved? 756 00:29:33,187 --> 00:29:35,980 ROSE MARY MUNOZ: More involved in helping the team. 757 00:29:35,980 --> 00:29:36,940 EARLL MURMAN: Yeah. 758 00:29:36,940 --> 00:29:39,760 CLAUDIO GELMAN: How do you help them with the idea? 759 00:29:39,760 --> 00:29:43,267 Do you help them think to it, or do they come up with idea 760 00:29:43,267 --> 00:29:43,850 by themselves? 761 00:29:43,850 --> 00:29:46,350 ROSE MARY MUNOZ: No, they came up with the idea by themself. 762 00:29:46,350 --> 00:29:49,810 And when they don't have no idea, I go with them, 763 00:29:49,810 --> 00:29:53,000 and I would say, for example, what do you think? 764 00:29:53,000 --> 00:29:56,140 You don't have no idea how you can get any ideas? 765 00:29:56,140 --> 00:29:59,260 Sometimes, they say, oh, maybe I don't have too many time 766 00:29:59,260 --> 00:30:00,680 to think and something like that. 767 00:30:00,680 --> 00:30:02,500 I told her, what do you think if we 768 00:30:02,500 --> 00:30:05,900 had put, for example, the [INAUDIBLE] here close to you? 769 00:30:05,900 --> 00:30:07,510 You can save one second. 770 00:30:07,510 --> 00:30:08,410 I said [INAUDIBLE]. 771 00:30:08,410 --> 00:30:09,190 That's fine [INAUDIBLE]. 772 00:30:09,190 --> 00:30:09,773 We can try it. 773 00:30:09,773 --> 00:30:13,275 They all try anything that I can help them do. 774 00:30:13,275 --> 00:30:14,650 EARLL MURMAN: So as a supervisor, 775 00:30:14,650 --> 00:30:18,270 what's the biggest challenge you have in this job? 776 00:30:18,270 --> 00:30:20,102 I mean, you've got 25 people. 777 00:30:20,102 --> 00:30:21,398 That's a lot right there. 778 00:30:21,398 --> 00:30:22,690 ROSE MARY MUNOZ: Work together. 779 00:30:22,690 --> 00:30:23,000 EARLL MURMAN: Work together. 780 00:30:23,000 --> 00:30:25,453 ROSE MARY MUNOZ: And teamwork, that's the most important. 781 00:30:25,453 --> 00:30:26,911 When we're all working like a team, 782 00:30:26,911 --> 00:30:28,780 you can get anything you want [INAUDIBLE].. 783 00:30:28,780 --> 00:30:29,863 EARLL MURMAN: Well, super. 784 00:30:29,863 --> 00:30:31,368 Well, let's go back in the factory. 785 00:30:31,368 --> 00:30:32,660 You've got a lot of work to do. 786 00:30:32,660 --> 00:30:33,440 ROSE MARY MUNOZ: Yeah. 787 00:30:33,440 --> 00:30:33,830 Thank you. 788 00:30:33,830 --> 00:30:34,600 EARLL MURMAN: OK, thank you. 789 00:30:34,600 --> 00:30:35,683 CLAUDIO GELMAN: Thank you. 790 00:30:35,683 --> 00:30:39,065 So this one's called stitching. 791 00:30:39,065 --> 00:30:40,440 Before in the computer stitching, 792 00:30:40,440 --> 00:30:43,170 the upper was in the flat form. 793 00:30:43,170 --> 00:30:46,692 Here is the first time the upper takes a 3D form. 794 00:30:46,692 --> 00:30:47,400 EARLL MURMAN: OK. 795 00:30:47,400 --> 00:30:53,520 CLAUDIO GELMAN: So it's a cell, and basically, it will follow-- 796 00:30:53,520 --> 00:30:54,840 something stopped here. 797 00:30:54,840 --> 00:30:55,950 You have to understand. 798 00:30:55,950 --> 00:30:57,180 You will follow these [INAUDIBLE]---- 799 00:30:57,180 --> 00:30:57,972 EARLL MURMAN: Yeah. 800 00:31:01,980 --> 00:31:04,860 CLAUDIO GELMAN: --to feed to what we call the assembly 801 00:31:04,860 --> 00:31:05,550 department. 802 00:31:05,550 --> 00:31:05,940 EARLL MURMAN: OK. 803 00:31:05,940 --> 00:31:07,380 CLAUDIO GELMAN: What is the sole. 804 00:31:07,380 --> 00:31:08,160 EARLL MURMAN: OK. 805 00:31:08,160 --> 00:31:10,285 CLAUDIO GELMAN: Still, in the stitching department, 806 00:31:10,285 --> 00:31:12,840 you still have continuous flow. 807 00:31:12,840 --> 00:31:16,500 If you looked between the station 808 00:31:16,500 --> 00:31:19,810 to upper, to upper, to upper, that associate 809 00:31:19,810 --> 00:31:23,190 just noticed he did not put another shoe on that tray 810 00:31:23,190 --> 00:31:24,420 until one was removed. 811 00:31:24,420 --> 00:31:25,710 EARLL MURMAN: The combine, OK. 812 00:31:25,710 --> 00:31:26,130 Flow. 813 00:31:26,130 --> 00:31:27,450 CLAUDIO GELMAN: Exactly, so they're pulling-- 814 00:31:27,450 --> 00:31:28,380 EARLL MURMAN: Pulling, yeah. 815 00:31:28,380 --> 00:31:29,797 CLAUDIO GELMAN: --very frequently. 816 00:31:29,797 --> 00:31:32,380 That discipline is very, very important. 817 00:31:32,380 --> 00:31:34,050 You don't want that overproduction. 818 00:31:34,050 --> 00:31:34,770 EARLL MURMAN: You're right. 819 00:31:34,770 --> 00:31:36,240 There are two there, two there. 820 00:31:36,240 --> 00:31:37,040 CLAUDIO GELMAN: And you still have-- 821 00:31:37,040 --> 00:31:37,160 they were stopped. 822 00:31:37,160 --> 00:31:38,290 EARLL MURMAN: I just saw the switch. 823 00:31:38,290 --> 00:31:39,570 CLAUDIO GELMAN: Yeah, and they were stopped. 824 00:31:39,570 --> 00:31:41,403 EARLL MURMAN: As soon as she pulled one off, 825 00:31:41,403 --> 00:31:42,630 he put one there. 826 00:31:42,630 --> 00:31:44,880 CLAUDIO GELMAN: It takes months and years to get that, 827 00:31:44,880 --> 00:31:46,350 but they understand. 828 00:31:46,350 --> 00:31:50,020 They understand that the shoes are not going anywhere 829 00:31:50,020 --> 00:31:50,880 if they overproduce. 830 00:31:50,880 --> 00:31:52,980 EARLL MURMAN: You know, it looks like a symphony. 831 00:31:52,980 --> 00:31:55,095 Everybody's playing together. 832 00:31:55,095 --> 00:31:55,970 CLAUDIO GELMAN: Yeah. 833 00:31:55,970 --> 00:31:57,740 Yes, exactly. 834 00:31:57,740 --> 00:31:58,370 It's a takt. 835 00:31:58,370 --> 00:32:01,124 It's like a rhythm. 836 00:32:01,124 --> 00:32:06,128 The shoe circulates to the department. 837 00:32:06,128 --> 00:32:06,670 They stopped. 838 00:32:06,670 --> 00:32:08,680 That's why they don't have a shoe here. 839 00:32:08,680 --> 00:32:11,380 The associate will put a-- 840 00:32:11,380 --> 00:32:14,500 and basically, the department is-- 841 00:32:14,500 --> 00:32:16,030 there are two basic operations. 842 00:32:16,030 --> 00:32:19,940 It's called the last thing, where you-- 843 00:32:19,940 --> 00:32:20,940 this is called the last. 844 00:32:20,940 --> 00:32:21,670 EARLL MURMAN: The last, OK. 845 00:32:21,670 --> 00:32:23,003 CLAUDIO GELMAN: You have a last. 846 00:32:23,003 --> 00:32:25,802 This is a style, and you have a last per the foot. 847 00:32:25,802 --> 00:32:27,010 The foots are very different. 848 00:32:27,010 --> 00:32:27,814 EARLL MURMAN: Yeah. 849 00:32:27,814 --> 00:32:28,740 [INTERPOSING VOICES] 850 00:32:28,740 --> 00:32:30,190 CLAUDIO GELMAN: Then they have-- 851 00:32:30,190 --> 00:32:31,540 the width is David. 852 00:32:31,540 --> 00:32:34,430 That's D. It's called David. 853 00:32:34,430 --> 00:32:36,590 New Balance specializes in width, 854 00:32:36,590 --> 00:32:41,590 so this particular shoe goes from B, very narrow, to a 6E, 855 00:32:41,590 --> 00:32:42,580 very wide. 856 00:32:42,580 --> 00:32:47,120 And each foot requires a different last. 857 00:32:47,120 --> 00:32:49,600 EARLL MURMAN: So how do we know when the shoes are 858 00:32:49,600 --> 00:32:51,870 going through this cell that-- 859 00:32:51,870 --> 00:32:54,640 are they making it for a particular size last? 860 00:32:54,640 --> 00:32:57,910 CLAUDIO GELMAN: There is a document that 861 00:32:57,910 --> 00:33:00,520 is printed every day and distributed 862 00:33:00,520 --> 00:33:04,240 to all the supervisors per value stream 863 00:33:04,240 --> 00:33:06,865 that they know exactly the sequence, 864 00:33:06,865 --> 00:33:08,510 so he knows very well. 865 00:33:08,510 --> 00:33:10,240 The flow coordinators in this teams 866 00:33:10,240 --> 00:33:11,545 knows very well what's coming. 867 00:33:11,545 --> 00:33:13,462 EARLL MURMAN: So that's done on a daily basis, 868 00:33:13,462 --> 00:33:15,880 so you're really responding on almost a daily basis 869 00:33:15,880 --> 00:33:17,233 to the pull in customer? 870 00:33:17,233 --> 00:33:18,150 CLAUDIO GELMAN: Right. 871 00:33:18,150 --> 00:33:19,130 Yeah, it's a daily. 872 00:33:19,130 --> 00:33:21,605 Yeah, daily. 873 00:33:21,605 --> 00:33:22,480 Sometimes are weekly. 874 00:33:22,480 --> 00:33:25,740 Sometimes are daily, but we know exactly. 875 00:33:25,740 --> 00:33:27,460 At the end of the day or the afternoon 876 00:33:27,460 --> 00:33:31,000 before, it gets put in these documents. 877 00:33:31,000 --> 00:33:33,100 EARLL MURMAN: Is that based on the orders that 878 00:33:33,100 --> 00:33:34,450 are coming in for shoes? 879 00:33:34,450 --> 00:33:35,680 CLAUDIO GELMAN: Yeah, it depends on the work orders. 880 00:33:35,680 --> 00:33:37,930 Some shoes are go directly to customers. 881 00:33:37,930 --> 00:33:41,140 Some orders go to the warehouse. 882 00:33:41,140 --> 00:33:43,870 It depends who they are for. 883 00:33:43,870 --> 00:33:47,020 It can be a weekly work order or a daily work order. 884 00:33:47,020 --> 00:33:50,290 Regardless of that, this document is daily, 885 00:33:50,290 --> 00:33:52,690 and it gets distributed, again, to the supervisor, flow 886 00:33:52,690 --> 00:33:54,190 coordinator, and set-up people. 887 00:33:54,190 --> 00:33:56,310 Set-up people are the ones that bring the work. 888 00:33:56,310 --> 00:33:59,150 So there's no question. 889 00:33:59,150 --> 00:34:01,840 So in the case of the last, the set-up person 890 00:34:01,840 --> 00:34:05,530 will have a document, so there's no need to talk. 891 00:34:05,530 --> 00:34:09,110 Every single transaction is very clear who's responsible, 892 00:34:09,110 --> 00:34:10,485 what needs to be done. 893 00:34:10,485 --> 00:34:12,610 EARLL MURMAN: This must give you a competitive edge 894 00:34:12,610 --> 00:34:16,060 over your competitors whose shoes are 895 00:34:16,060 --> 00:34:17,800 being made in another country. 896 00:34:17,800 --> 00:34:19,870 And the market is here, and there's 897 00:34:19,870 --> 00:34:23,800 a time lag between those two. 898 00:34:23,800 --> 00:34:26,199 CLAUDIO GELMAN: Yes, it is. 899 00:34:26,199 --> 00:34:30,400 We're working right now with our lead time of three days. 900 00:34:30,400 --> 00:34:33,550 It's to try to help the retailers to minimize 901 00:34:33,550 --> 00:34:36,949 the inventory, so it started Friday. 902 00:34:36,949 --> 00:34:38,739 Saturdays and Sundays are big days. 903 00:34:38,739 --> 00:34:40,540 On Monday, they place an order. 904 00:34:40,540 --> 00:34:43,136 Three days later, we can deliver it back to them. 905 00:34:43,136 --> 00:34:45,219 EARLL MURMAN: And this lady is doing it right now. 906 00:34:45,219 --> 00:34:46,219 She's-- 907 00:34:46,219 --> 00:34:46,719 CLAUDIO GELMAN: Absolutely. 908 00:34:46,719 --> 00:34:47,719 EARLL MURMAN: Real-time response. 909 00:34:47,719 --> 00:34:48,219 OK, cool. 910 00:34:48,219 --> 00:34:50,719 CLAUDIO GELMAN: This is to be in a customer in three or four 911 00:34:50,719 --> 00:34:54,750 days, and that makes a big difference. 912 00:34:54,750 --> 00:34:59,667 Basically, in this department, these associates-- 913 00:34:59,667 --> 00:35:01,875 the shoe is put into what's called a conditioner just 914 00:35:01,875 --> 00:35:04,300 to get some steam to soften up a little bit. 915 00:35:04,300 --> 00:35:10,140 So when he removes a last, puts on the paint, 916 00:35:10,140 --> 00:35:15,320 and put the shoe on, it flexes [INAUDIBLE] to fit. 917 00:35:15,320 --> 00:35:17,630 The shoe gets cemented on the bottom. 918 00:35:17,630 --> 00:35:19,760 EARLL MURMAN: OK. 919 00:35:19,760 --> 00:35:24,040 CLAUDIO GELMAN: The sole is the layer from behind. 920 00:35:24,040 --> 00:35:28,680 The associates with that yellow machine over there, 921 00:35:28,680 --> 00:35:30,660 basically, what it does is activates-- maybe 922 00:35:30,660 --> 00:35:32,880 I'll show you a little more closely here. 923 00:35:32,880 --> 00:35:34,635 So the shoe is cemented. 924 00:35:34,635 --> 00:35:37,202 It's put in this big dryer-- 925 00:35:37,202 --> 00:35:37,910 EARLL MURMAN: OK. 926 00:35:37,910 --> 00:35:38,952 CLAUDIO GELMAN: --to dry. 927 00:35:38,952 --> 00:35:41,102 The sole underneath, this comes from behind. 928 00:35:41,102 --> 00:35:41,810 EARLL MURMAN: OK. 929 00:35:41,810 --> 00:35:44,870 CLAUDIO GELMAN: The right sole for the right upper. 930 00:35:44,870 --> 00:35:47,225 The cement gets a little bit of heat in that-- 931 00:35:47,225 --> 00:35:48,350 EARLL MURMAN: In that oven? 932 00:35:48,350 --> 00:35:50,720 CLAUDIO GELMAN: It's called a activator oven. 933 00:35:50,720 --> 00:35:55,850 Then the associate will get the upper and the sole activated. 934 00:35:55,850 --> 00:35:59,450 They will stick it together, put it in this big press 935 00:35:59,450 --> 00:36:02,690 where the shoe stays for two minutes to ensure bonding. 936 00:36:02,690 --> 00:36:04,010 EARLL MURMAN: OK. 937 00:36:04,010 --> 00:36:06,470 CLAUDIO GELMAN: And then goes to our table 938 00:36:06,470 --> 00:36:10,280 where the packing associates will do some basic inspections, 939 00:36:10,280 --> 00:36:13,010 will remove any cement, will apply 940 00:36:13,010 --> 00:36:17,180 the laces, any tags, advertisements. 941 00:36:17,180 --> 00:36:21,928 Some tissue inside the shoe to keep its shape inside the box. 942 00:36:21,928 --> 00:36:22,840 EARLL MURMAN: Yeah. 943 00:36:22,840 --> 00:36:23,590 CLAUDIO GELMAN: Get packed. 944 00:36:23,590 --> 00:36:24,490 EARLL MURMAN: And that's it. 945 00:36:24,490 --> 00:36:25,740 CLAUDIO GELMAN: And that's it. 946 00:36:25,740 --> 00:36:28,400 EARLL MURMAN: OK, so Claudio, this now goes to your customer, 947 00:36:28,400 --> 00:36:28,960 and if I-- 948 00:36:28,960 --> 00:36:29,400 CLAUDIO GELMAN: Yeah. 949 00:36:29,400 --> 00:36:32,005 EARLL MURMAN: If I go to a New Balance outlet or a shoe store, 950 00:36:32,005 --> 00:36:32,630 I can buy this. 951 00:36:32,630 --> 00:36:33,880 CLAUDIO GELMAN: You'll see those shoes, absolutely. 952 00:36:33,880 --> 00:36:35,630 EARLL MURMAN: Claudio, thanks so much for showing-- 953 00:36:35,630 --> 00:36:36,280 CLAUDIO GELMAN: It's been a pleasure. 954 00:36:36,280 --> 00:36:37,280 Really, a pleasure. 955 00:36:37,280 --> 00:36:38,230 EARLL MURMAN: And you know, as we're leaving, 956 00:36:38,230 --> 00:36:40,063 I kind of want to know, what's the next step 957 00:36:40,063 --> 00:36:41,290 in your lean journey? 958 00:36:41,290 --> 00:36:42,665 CLAUDIO GELMAN: It's interesting. 959 00:36:42,665 --> 00:36:47,900 The answer is more of the same, but what I mean by that-- 960 00:36:47,900 --> 00:36:50,600 everything is about the thinking. 961 00:36:50,600 --> 00:36:54,430 So what we'll do, we will work in more sophisticated problems. 962 00:36:54,430 --> 00:36:57,890 We continue sharpening our problem-solving skills, 963 00:36:57,890 --> 00:37:01,390 so we will be able to resolve more complicated waste 964 00:37:01,390 --> 00:37:02,940 problems.