Sturm, Ruger & Company, Inc. · NYSE:RGR
Sturm, Ruger & — Investor Day (May 2012)
14 slides from Sturm, Ruger &'s investor day presentation, May 1, 2012
Slide 1: Analyst & Shareholder Day
RUGER Analyst & Shareholder Day » R ELTA BLE F iR EA RM S§ Agenda Welcome / Introductions Lean 101 Starting Point Current State Factory Tour Future Vision Questions REUSGSGSEs Oy nee Lee A Se Bee FtiReEARM S§S
Slide 2: Welcome / Introductions
Welcome / Introductions Mike Fifer, President and CEO Tom Dineen, CFO Tom Sullivan, VP, Newport Operations Chris Killoy, VP, Sales and Marketing Steve Maynard, VP Lean RWGGEO, RELA BLE FtiReEARM S Lean 101 RUGGED, RELIABLE FIREARMS
Slide 3: Lean Production quote and PDCA Cycle
“All we are trying to do in Lean Production is to get one process to make only what the next process needs, when it needs it. We are trying to link all processes - from raw materials to final consumer - in a smooth flow without detours that generates the shortest lead time, highest quality, and lowe
Slide 4: Kinds of Waste / The Toyota Production System
8 Kinds of Waste Overproduction Waiting ss Over Transportation Processing Inventory People Utilization RUWOGGEOD, RELLA BLE FIREARM S The Toyota Production System (TPS) ¢ Focused on: ¢ Reducing Waste ¢ Improving Processes ¢ Changing the Culture to a “Learning Culture” « TPS Affects Every Part of the
Slide 5: TPS: Top-Down & Bottom-Up Approach
TPS: Top-Down & Bottom-Up Approach ¢ Strategy Deployment: ¢ Ties Corporate Goals to Specific Initiatives ¢ Reviewed Monthly ¢ Lean Tools, Tactics, Strategies: ¢ Business Units ¢ Lean Production Tools * Quality Approach U0GBGED, RELULA BLE FIREARM S Lean Tools, Tactics, Strategies Business Units: Pro
Slide 6: Lean Tools, Tactics, Strategies
Lean Tools, Tactics, Strategies Lean Production Tools: ¢ Focus on Reducing Throughput Time, Exposing & Solving Problems e Extensive Use of PDCA Cycle « Single Piece Flow, Pull, Mistake-Proofing, Visual Management, etc. Quality Approach: * Quality Built into Processes ¢ Mistake-Proofing ¢ 100% In-Pro
Slide 7: Starting Point: 2006
Starting Point: 2006 ¢ Disjointed Operations: ¢ Factory Set Up by Process (Drilling, Milling, Assembly, etc.) * Component Production in Large Batches: ¢ Drove Long Throughput Times (as Long as 4-6 Months) ¢ High Levels of Scrap & Rework ¢ Poor Delivery: Never Had What Customers Really Wanted. ¢ Very
Slide 8: Starting Point: 2006
Starting Point: 2006 ¢ Piecework Culture: * Overproduction of Wrong Parts ¢« No Management: Only Expediters ¢ Very Little Teamwork, Poor Culture e Hidden Factory: ¢ Insufficient Process Documentation ¢ Problems Hidden, Very Little Accountability RUGG@EoD, RELIABLE FtiREARM S Current State RUGGED, RE
Slide 9: Current State: 2012
Current State: 2012 ¢ Business Units in Place ¢ Value Streams Set Up for All Product Families ¢ From Component/Assembly Cells to “Supercells” ¢ Throughput Times Reduced to 1 Week or Less Problems Identified & Fixed Quickly (Usually Permanently) Costs Reduced/Volumes, Productivity & Margins up Signif
Slide 10: Factory Tour
Factory Tour ¢ Foundry: ¢ Progress from Traditional Foundry (with Cells) to Single Setup Flow “Supercell” ¢ GEM: ¢ Single Piece Flow (SPF) Manufacturing Cells Building to Pull Signal (Kanban) from Gun Factory ¢ Gun Factory: ¢ Product Family-Based, Single-Piece Flow Component/Assembly & Supercells RW
Slide 11: Factory Tour: Lean Assessment Sheet
Factory Tour: Lean Assessment Sheet Jo Word Class | RWG@GGEO, RELLA BLE FIREARM S Factory Tour: Route Start at Pine Tree Castings (PTC) with Legacy Foundry Process (Story boards along tour route explaining process, improvements.) Mini Foundry Last Stop at PTC Van Ride to Gun Factory: Start with Stra
Slide 12: Factory Tour: Route
Factory Tour: Route ¢« Down Far Aisle Past Legacy Single-Action Component Cells Stop at Small Parts to Look at Last Remaining Batch Ops Stop at SP101 Cell: (Story board for standard work.) Through Tunnel Past 10/22 Stop at LCR “Supercell” Stop at Ruger American Rifle “Supercell’” Into Conference Roo
Slide 13: Future Vision
Future Vision ¢ Continued Focus on Operational Excellence ¢ Many Opportunities Ahead: ¢ Productivity Improvements on Both Shop Floor & Non-Production Areas ¢ Supply Chain Improvements ¢ Keep Working on Deploying Lean Knowledge ¢ Keep Working on Developing Learning Culture RWG@GGEOD, RELA BLE FtiReEA
Slide 14: Thank You!
Q RUGER Thank You!