Nordson Corporation · NASDAQ:NDSN
Nordson — Investor Presentation (May 2006)
17 slides from Nordson's investor presentation, May 2006
Slide 1: Lean Manufacturing
Lean Manufacturing On-Demand, Defect-Free, One-By-One at the Lowest Cost ® © 1996-2005 www.simpler.com S im ple r … part of the Simpler Business System®
Slide 2: Why do you want to be Lean?
Why do you want to be Lean? Politically correct? Your boss says you need to? Everyone else is, we probably should be too? Flavor of the month? Begin with a purpose! ® © 1996-2005 www.simpler.com S im ple r … part of the Simpler Business System®
Slide 3: What's possible with Lean?
What’s possible with Lean? Sales 20% organic growth per year On-Time Delivery 99% on-time Productivity 25% per year Inventory Turns Double every year for 5 yrs Quality Costs 50% every year for 5 yrs SGA productivity 10% every year for 5 yrs EBIT% You can do the math ® © 1996-2005 www.s
Slide 4: 5 Principles of Lean
5 Principles of Lean Lean Thinking applies to all processes!! VALUE = Define value from the perspective of the customer. What are they willing to pay for? What is important to the customer in terms of a specific product at a specific price, and at a specific time. VALUE STREAM = Identify specific ac
Slide 5: Value Adding
Lean Focuses on the tasks that are Value Adding Finishing line tasks • Punching • Forming • Welding • Painting • Assembling These add value to the product and customers are willing to pay for them. ® © 1996-2005 www.simpler.com S im ple r … part of the Simpler Business System®
Slide 6: Non-Value Adding
Lean Focuses on reducing or eliminating processes that are Non-Value Adding Consumes time and money... but does not change the value of an item Inventory Setup Color Change Line Gaps Sorting Counting Stacking Expediting Inspecting Reworking ® © 1996-2005 www.simpler.com S im ple
Slide 7: Lean Is About Seeing Waste
Lean Is About Seeing Waste “WASTE” isn’t a judgement if it's non-value adding, it's waste implement solutions that eliminate the waste this creates performance improved performance creates job security These ground rules help: 1. If it's non-value adding, call it waste. 2. Steps are wastef
Slide 8: Eliminate the 8 Wastes of Lean
Eliminate the 8 Wastes of Lean Waiting - Stopping for materials or information Inventory - Storing materials or information including WIP Transfer - Moving materials, people or information Deficiencies - Defects, scrap, rework or incorrect information Motion - People lifting, bending, reaching, turn
Slide 9: Lean Thinking = Lowest Cost
Lean Thinking = Lowest Cost Is Your “Setup Time” an Excuse to Run Large Batches? Where do you run large batches? Why do you run large batches there? – Is there shared equipment? – Are there long set ups? – Is every set up long? – Are you sure? Would you run large batches if your setup times were
Slide 10: Lean Thinking = Lowest Cost
Lean Thinking = Lowest Cost Do You Know the Cost of Big Batches? Where is your inventory – Finished items with no buyer yet – Items partly finished (WIP) – What does it cost you to hold it there? How good is your on-time delivery? How short are your lead times? Are you working on things nobo
Slide 11: Lean Thinking = Lowest Cost
Lean Thinking = Lowest Cost What if… – You could do any changeover in < takt time (Takt time is the rate or time that a completed product is finished.) – Raw-to-finished flow times were in minutes? – You knew your customer’s real usage How would your inventories change? How would your lead times cha
Slide 12: Lean Thinking = On Demand
Lean Thinking = On Demand Total Productive Maintenance is a concept for maintaining plants and equipment. The goal of the TPM is to increase production with scheduled maintenance of equipment to reduce or eliminate unplanned downtime. 80%+ reduction in unscheduled downtime Improvements in on-tim
Slide 13: Lean Thinking = Zero Defects
Lean Thinking = Zero Defects Zero Defects is a practice that aims to reduce defects as a way to directly increase profits. Define your quality standards Establish quality checks to make sure standards are met Set corrective action process in place to solve problems permanently ® © 1996-2005 ww
Slide 14: Lean Thinking = One-by-One
Lean Thinking = One-by-One A Mixed Model flow is making value flow by taking out the waste so multiple products can be produced one-by-one. pull by the customer – high mix the cell can run any production sequence – no loss of quality – no loss of productivity a better use of resources – people
Slide 15: Lessons from the Journey to Lean
Lessons from the Journey to Lean It is always more than you think A four-fold productivity gain is possible Lean tools and principles work everywhere Lean feels wrong Lean is learned by Doing It Participation creates new attitudes and behaviors Firefighting consumes improvement energy
Slide 16: What's next?
What's next? Research, research, research Visit AME.org; Lean.Org; Simpler.com; Nordson.com Learn to see the 8 wastes • Annualize your line gaps; lost production time? • Count inventory around your paint system – how much cash? • How long is your color change – good part to good part? • Observe wast
Slide 17: Let Nordson guide your journey to lean powder coating
Let Nordson guide your journey to lean powder coating. Nordson understands lean manufacturing. PAINT , ZERO Pes - i ANY af | FASTER coLon |i Gocon INVENTORY Ar, ~~ ANY TIME ‘ ” ! ’ 7 or iA | J ¥ Call us today at 800 BARS — OF-VIsIt WWW.NOTESON.COMIPONNRK and enter promo code PW _ aseehow lean Can sa