PowerPoint Presentation

Seattle Goodwill Foundational Standards Production Departments

For New & Existing Store Leaders & Management

KAIZEN & LEAN Course 1

Success is the “why”.

This program is set-up and engineered to make staff successful. Leadership's role is vital for this program's realization. Success might seem obvious. Of course, we want everyone to be successful, right? That’s were Production University ensures that you and your team are just that, successful.

Donations Donations is where it all starts with products and items. However, there is a foundation that donations was built on. That foundation is KAIZEN & LEAN. In this course we will see how and why this foundation effectively drives our business forward. Production is the example we will be using in this course. We will be drilling down on Donations in another course.

Production Production is a place where we add value to an item. That journey starts in donations. Even though the item was received in donations it still has no value. It’s just an item. KAIZEN & LEAN give us the process and tools to find the right price for the right item at the right time. This symphony of movement if followed brings desired results.

Let’s Get Started!

Course 1 Kaizen/Lean

What is KAIZEN/LEAN

KAIZEN Kaizen is a concept referring to business activities that continuously improve all functions and involve all employees from the CEO to the assembly line workers. Kaizen （ かいぜん） is the Sino-Japanese word for "improvement".

Eliminating waste along entire value streams, creating processes that need less human effort, less space, less capital, and less time to produce products and services at far less costs and with much fewer defects, with efficiency. LEAN

What is KAIZEN/LEAN

KAIZEN & LEAN

Here’s a quick summation of these two words: • A created foundation and process that eliminates waste • A process that is checked in on to ensure it’s happing daily and correctly • Building a culture of eliminating waste and following a proven process • A mindset that keeps the employee and customer in mind • Improving process when needed with all with everyone's input

These two process have helped ensure Goodwill’s success.

Kaizen/Lean The Huge Impact

What is KAIZEN/LEAN

NO, REALLY TAKE A LOOK! This is what it was like before Goodwill had KAIZEN/LEAN processes in place in stores production facilities. At this point in time the thought was, “Do what you can”. Days were mentally exhausting for Production associates . They were literally pushed piles and piles of items and would try to do there best to sort and price as much as they could. This was very taxing on all employees . Know one knew if what they were doing made a difference or not.

What is KAIZEN/LEAN

NOW TAKE A LOOK! This is what it looked like after Goodwill put in KAIZEN/LEAN processes. The new quote was, “this is so much easier”. Staff were making stores goals and production felt less stressful . Everything had a place, and everyone recognized it. Morale went up and employee retention was high! It took everyone knowing what the expectation was and ensuring it was kept. Not a problem, staff never wanted to go back to pre-KAIZEN/LEAN times.

What is KAIZEN/LEAN

Lean waste is any activity or cost that adds no value. Waste, in Lean terms, is any activity that does not add value to the product, costs you money and resources, and earns you nothing as a business . It also consumes resources but brings no value to the end customer. From operating losses to missed opportunities, all 7 wastes are so universal in manufacturing/production operations, and its causes and symptoms can more easily identify each.

If waste is not controlled, it’s always dollars lost.

The 7 Wastes of lean. What are they and how do they affect Production Goals and Store Sales?

Bye, Bye?

What is KAIZEN/LEAN

Let’s break down the 7 wastes of Lean that can take down a Goodwill Production.

What is KAIZEN/LEAN

The 7 Wastes of Lean

1. Transportation This type of waste is when you move resources (materials), and the movement doesn’t add value to the product . Excessive movement of materials can be costly to your business and cause damage to quality. Often, transportation may force you to pay additionally for time, space, machinery and that ends up equaling wasted dollars.

Transportation Examples

X

1.

2.

Touch 1

Touch 3

Touch 2

Receives the donation.

Comes back and brings it inside to Furniture area. Goes back to donations.

He puts it in Furniture donation pile and leaves.

Touch 4 X

Leadership Tip

3.

Touch 5

If the Material Handler was trained to price furniture, he could have priced it at the point of receiving it and then taken to the sales floor immediately. Which would eliminate

the pile of furniture outside or inside.

3 Touch

The waste in this scenario is each piece of furniture in the pile now a must be touch 5 times instead of 3.

Comes back again to price it when he has time.

Then merchandises it on the sales floor.

What is KAIZEN/LEAN

The 7 Wastes of Lean

2. Inventory Excessive inventory is often the result of a company holding “just in case” inventories. In such cases, companies overstock themselves in order to meet unexpected demand , protect from production delays, low quality, or other problems. However, these excessive inventories often don’t meet customer’s needs and don’t add value . They only increase storage and depreciation costs and can ultimately just get in the way.

Inventory Examples

Build to Board

5/25/2021

4 8 4 12 6 8 5 12 18 6 6 15 22 8 8 4

4 9 6 6 2 15 24 4 2 2

60 60

40 40

100 100

The Build to Board is tool that helps regulate how much product you have stored at your facility in addition to what you need to order. Whether it’s raw donations or product from the warehouse ensure that you have only what you need.

When the Build to Board is not used daily product builds up and can take over an area that is dedicated to something else.

What is KAIZEN/LEAN

The 7 Wastes of Lean

3. Motion This kind of waste includes movements of employees (or machinery), which are complicated and unnecessary . They can cause injuries, extended production time (to many steps) , and more. In other words, do whatever is necessary to arrange a process where workers need to do as little as possible to finish their job.

Motion Examples

Motion is usually not something we think about in our day-to-day jobs. However, when you take the time to look around and observer employees, 9 times out of 10 you will notice extra steps or movement is being used to perform a task. In the picture to the right, you can see that this employee is taking 2 extra steps over and over to put her priced items in her shiny cart. To fix this, all she would have to do is pull the shiny cart closer to her to save time and motion. This is considered motion waste .

What is KAIZEN/LEAN

The 7 Wastes of Lean

4. Waiting This is probably the easiest waste you can recognize. Whenever goods or tasks are not moving , the "waiting waste" occurs . It is easily identifiable because lost time is the most obvious thing you can detect. For example, goods waiting to be delivered or stocked , equipment waiting to be fixed, or a document waiting for executives' approval.

Waiting Examples

Production/Textiles Department 5:45pm Everyone has gone home and this what is left.

Our customers shop from morning to night . A lot of our customers return repeatedly throughout the day and week. That’s way it is so important to have all priced product out of production and stocked at the end of the day . Fresh product grows sales . Our customer can’t shop in our Production facilities which equals missed dollars. When priced product sits in the back and not stocked until the next day you will see a negative correlation between sitting product and store sales . You will usually come up short the amount in the back.

1. 2.

3. 4.

5. 6.

The Math

If each z- rack holds 80pcs. X 6 Z- Racks left in production = 480pcs. X ave. Women's textiles selling price $6.54 = $3,139.20 is about the amount store sales will be missed for the day due to product sitting in the back.

Waiting Examples

Example 2

Donations piled on the ground.

Non-useable Donations Cart.

Broken or missing tools make more work for everyone . If you don’t have it, you can't use it. Your P&L have a dollar line item for tools each period. If you need it, get it. As you are doing your daily Production MOD walk make sure you are checking your tools to ensure that you have them all and they’re in working order.

=

What is KAIZEN/LEAN

The 7 Wastes of Lean

5. Overproduction Keeping in mind that waste is anything that the customer is unwilling to pay for , it is easy to realize why overproduction is waste. Producing more means that you exceed customer’s demand , which leads to additional costs. Overproduction triggers the other 6 wastes to appear. The reason is that excess products or tasks require additional transportation, excessive motion, greater waiting time, and so on. Furthermore, if occasionally a defect appears during overproduction, it means your team will need to rework more units. In the case of Goodwill overproduction means over packed shelves and textiles racks making it had to shop for customers.

This Donated Jacket costs Goodwill $5.28 everyday . Plus, other of hundreds of items just like it which costs Goodwill thousands of dollars a day. The Question is HOW?

Overproduction Examples

3. March, 6 th 2021, Early rag-off of the $7.99 jacket due to being to tight to shop.

2. March, 5 th 2021, The $7.99 jacket is still there and still to tight to fit in the rack and it sits there.

1. March, 3 rd 2021, $7.99 Black jacket is stocked/pushed into a very tight rack.

3. 4.

2.

1.

The Math 1. If each straight rack holds 80pcs. X 4 tight racks = 320 pcs, X ave. price. Women's textiles selling price $6.54 = - $2,092.80 of possible items that do not sell due to racks being too tight. 2. Now take the time and labor it took to accept the jacket as a donation, sorting it, tagging it and then stocking it and lastly raging it off.- $2.07

3. Now add in transportation to the Outlet. Tipped, rotated and then baled and loaded onto a shipping container. -3.21 4. How many more items would then be quality ragged off to make this shoppable? Will it fill back up again?

What is KAIZEN/LEAN

The 7 Wastes of Lean

6. Over-processing This type of waste usually reflects on doing work that doesn’t bring additional value , or it brings more value than required. Such things can be adding extra features to a given product that nobody will use, but they increase your business costs. For example, if a car manufacturer decides to put a TV screen in the back trunk of a vehicle, probably nobody will use it or find value in it. Even more, it will cost resources, and it will increase the end price of the product for something that customers are not willing to pay for.

Over-Processing Examples

Cleaning or adding any fragrance is not to standard and has been labeled “a waste of time”.

You have 30 seconds to clean and wipe down shoes. If it takes longer than 30 seconds, salvage the item. (The shoes in the image will take to long to clean and need to be salvaged).

You are allowed to wipe down and clean items for 30 seconds in any department beside Textiles. Any longer, the item should be salvaged or put in the trash.

What is KAIZEN/LEAN

The 7 Wastes of Lean

7. Defects Defects can cause rework, or even worse, they can lead to scrap. Usually, defective work should go back to production again, which costs valuable time. Moreover, in some cases, an extra reworking area is required, which comes with additional exploitation of labor and tools .

Defects Examples

Lack of stocker training in wares. Stocking the wrong items in the wrong spots.

Putting tools in the wrong spots forces staff to take time to hunt for them each time.

Condition issues that sit and take up space on sales floor because staff is producing too fast.

The 7 Wastes of Lean

7 Wastes of Lean • Transportation – in production, it may mean moving parts and materials from one place to another (how many times does on item get touched/moved) • Inventory – undelivered products or parts. Overstocking with equipment/product that may be in need somewhere in the future • Motion – unnecessary movement of employees or machinery (how many steps) • Waiting – waiting for goods to be delivered • Overproduction – too many items produced “just in case” • Over-processing – Spending a lot of time on a given task. Adding a feature that doesn’t bring value (trying to remove spots on textiles) • Defects – broken parts or defective parts that need to be reworked (condition issues of items priced and never sold)

Kaizen & Lean Goodwill Production Foundations

Each Goodwill production facility has put in processes and functionality to make a store more successful.

Let’s look!

The Foundation

Graphical

CAD Maps Each store has its own specific Kaizen layout. This layout was created with process, steps and efficiency in mind. The map shows that everything in production and donations has a place in detail. Once the layout was completed a vectored map was made to ensure the foundation is known and reinforced. Building on the Foundation Following the map layout ensures efficiency. Like all things Kaizen improvement and change can happen to help eliminate waste. If there is any change needed you must have leadership and staff involved.

The Foundation

Visual Management

Tape Colors

Yellow – Aisle Ways Blue – Department

Transitional – (Temporary Storage)

Safety/Danger – (Keep Clear)

Permanent

The example above shows Department tape with labeling of items.

The Tape shows where things should go or should not go. This type of visual management works when reinforced and followed.

The Foundation

(1 Employee) U-Shaped Workstations

U-Shape Workstation

Goodwill has U-Shaped workstations. The purpose of this type of workstation is to improve product quality and productivity while keeping costs low by eliminating all waste in the production system . U shaped work stations arrange tools and products around a U-shaped line in the order to the production operator. One employee supervises both the entrance and the exit of the product line . This requires operators to be multi-skilled to operate several different processes. Each workstation has been visually taped by blue lines to show where everything goes and to help the workstation support through Visual Management. This type of process makes it easier for the employee by eliminating the amounts of steps and bends and twists to perform their daily duties making the employee more efficient.

Range Box

Recycle

Garbage

Processing Table 2.

Tote Table

1.

3.

Shiny Cart

Full Totes of Product

Empty Totes

Exit of Product

Entrance of Product

What are Standards

(2 Employees) Textiles Standard | Paired Employees

Textiles Workstation

100 pcs. per hour is the textiles standard. It takes 2 employees to make that standard. The shifts work staggered so there is now time waste. Sorter starts 8:00am (hangs 100 pcs. 1 hour) Tagger comes in 9:30 so to have at least one rack filled to tag and stock. By the time they come back from stocking another rack should be filled. The both work a 7.5hr. Shift minus breaks and lunches. That should produce 750 pcs . *Bonus 100 pcs. Tagger fills in for Sorter on breaks and lunch = 1hr. 100pcs. Daily total for 1 sorter/1 tagger 850pcs.

Salvage Range Box

Garbage

Recycle

#2 Person Tagger Stocker

Processing Table

Blue Cage

1# Person Sorting

Women's Z-Rack

Men’s & Kids Z-Rack

Tagger/Stockers should be refilling sorters hangers and bringing empty z-rack for sorters. This prevents the sorters from stopping and leaving their station reducing table time.

The Foundation

Just in Time Production/ Visual Management

U-Shape Workstation

Processing Table Salvage Range Box

Just in Time (JIT), & Single Piece Flow Just in Time methodology , as the name suggests, ensures that materials are delivered at their point of use as and when required , not in any other quantity only that which is required in storage taped areas , or at a time that suits the workstation employee. When adding more product to a station causes pile ups and blockages. Piles ups causes production employees to slow down because the process has been disrupted. These types of situations cause wasted steps, time and dollars. * The example show how JIT should work.

Aisle Way

Recycle

Garbage

Tote Table

Shiny Cart

Full Totes of Product

Empty Totes

Exit of Product

Entrance of Product

The Foundation

Visual Management

5 Minute Drills

Daily 5 Minute Drills ensure that the right number of tools are available for the day, no more, no less. Daily 5 Minute Drills prevent staff from needing to leave the station to find missing tools. Time away from the station is time away from making goal. Daily 5 Minute Drills while training will develop the habit: we consistently do what we consistently practice!

Posted in department binder at each station.

Leadership Tip

Moring Rallies are good way to ensure 5 min. drills get done. Say at the end of the rally “ok team it’s time for 5 min. drills, I'll be around if you need supplies.

The Foundation

Visual Management

5 Minute Drills Part 2

It’s hard, you work at the same workstation once or twice a week you then start to make the area personalized with things you find in donations. However, other people work at these stations too. We don’t want to offend or distract others who work in that area so they must be removed. This is also considered mishandling. Things to look for and remove are the following: • Trinkets/figurines • Small stuffed animals' key chains • Personal items: glasses, earbuds, etc. • Pictures

• Small signs • Sports stuff • Religious Items • Magnets stuck to posts

The Foundation

Visual Management

Workstation Red Lights

Not everyone likes yelling for help at their job. Not everyone likes being yelled at to help. No professional businesses allow yelling in their work facilities. Why should we? Red Lights are in place to show the “Production Support MH” that you need something without yelling. There should be a Material Handler assigned each day to walk up and down the Production main aisle looking for Red Lights and taking care of everyone's needs. This is “Production Support. This position can not do anything else.

I need my Salvage changed out!!!!!

Leadership Tip

If you feel that the Material Handler Support person does not have enough to do, have them sweep all corners and aisle ways while not giving support. You will have a clean production in know time.

The Foundation

Graphical Foundation

How to Price Document

Department Binder

Process Document

Process Documents Each workstation station in production has a specific binder for all process documents. What you will find inside is how the process of that specific department works and tools to help you price. The process documents were created with high productivity in mind. To guarantee you have the most current documents, please order on D365. Make sure these documents are easily available and up to date to help New Hires or someone who is being cross trained to be able to reference.

TEXTILES Department

Kaizen & Lean Recap

KAIZEN Continuous improvement

LEAN

Processes that eliminates waste

Daily Leadership Involvement

Every person taking small steps to better results

Purpose, Process, People

Just in time Production • Reduction in inventory • Reduction in labor costs • Reduction in space needed to operate • Increase in production • Improvements in product quality (lower rates of defects)

• Reduction of throughput time • Reduction of standard hours • Increase in number of items produced

Common Costly Production Waste

The Foundation

Visual Management/Over Filled Station Just in Time (JIT), TAKT & Single Piece Flow The blue taped areas in the workstations are there to show staff where things should be. This also let’s Material Handlers know where RAW/Salvage product go. Sometimes Material Handlers may believe over stuffing product/blue totes in stations makes it easier for them and cuts down on bringing product when needed. This causes frustration, workstation frustration and wasted time and steps removing these extra not neccessaey items. Lastly, this takes employees off the processing table and hinders them from making Production Goals/Standards. This is a common hurdle for staff.

U-Shape Workstation Over Filled

Processing Table Salvage Range Box

Recycle

Garbage

Excuse Me!

Tote Table

Full Totes of Product

Shiny Cart

Empty Totes

Aisle Way

The Foundation

Lack of Production Support

Electronics Workstation FULL Flashing Red Light

The biggest form of waste in Lean is excess steps or wasted movement. This waste hurts the whole store. There is no added value or money made when this happens. Taking time away from employee who need to produce due to lack of proper scheduling and staff focus. This can happen all day or multiple times a day in all 9 departments. This hurts Production Goals, Sales Goals and is defeating to staff who are trying to be successful trying to make their standards.

Range Box

Garbage

Can you help me?

Processing Table

Recycle

Tote Table

Shiny Cart

Aisle Way

* This employee has stopped processing because their salvage is full.

The Foundation

Visual Waste Management/Steps

Tools in Blue Lines

Tools not in Blue Lines

The biggest form of waste in Lean is excess steps or wasted movement. Sometimes something as simple as where the tools are placed at a workstation while processing can highlight waste. These extra steps cause waisted time and money . Each step wasted could have been time processing. Extra steps also tire out staff. So, the next time you see tools that are not in their proper spots just push them back in . Help staff reach their full potential!

Salvage Range Box Processing Table

Recycle

Garbage

Recycle

Garbage

Processin g Table

Tote Table

Shiny Cart

Full Totes of Product

Full Totes of Product

Empty Totes

Empty Totes

Steps X 100

Exit of Product

Entrance of Product

Exit of Product

Entrance of Product

What are Standards

(Unadvised) Textiles Standard Takes 3 Employees | Non-paired

This is not to standard but happens due callouts and not prioritizing and assigning the correct labor. 100 pcs. per hour is still the textiles standard. We know it takes 2 employees to make the standard. In this example there is one tagger/stocker for two sorters 3 people. This puts a lot of pressure on the tagger/ stocker to assist. This may still produce 1400 pcs. however, no bonus pieces will be achieved on lunches and breaks. You will have z-racks with sorted/priced product with minimal to no price tags on them at the end of the night that will have to ticked and stocked in the morning. This process automatically puts you behind for the day.

Textiles Workstation #2

Textiles Workstation #1

Salvage Range Box Processing Table

Salvage Range Box Processing Table

2# Person Tagging/ Stocking

Garbage

Recycle

Garbage

Recycle

Women's Z-Rack

Blue Cage

Blue Cage

1# Person Sorting

2# Person Sorting

Women's Z-Rack

Men’s & Kids Z-Rack

Men’s & Kids Z-Rack

What are Standards

Textiles Workstation #3

(BURNOUT) Textiles Standard Takes 4 Employees | Non- paired

Salvage Range Box

Garbage

Recycle

Processing Table

Blue Cage

This is not to standard but happens due callouts, vacations and not prioritizing and assigning the correct labor. 100 pcs. per hour is still the textiles standard. We know it takes 2 employees to make the standard. In this example there is 1 tagger/stocker for 3 sorters. This puts a too much pressure on the tagger/ stocker to assist. You will probably run out of Z-Rack to sort on. No bonus pieces will be achieved on lunches and breaks. However, you will have a lot z-racks with sorted/priced product on them with no price tags at the end of the night that will have to ticked and stocked in the morning. This process will put you behind for the following day.

#3 Person Sorting

#1 Person Tagger Stocker

Women's Z-Rack

Men’s & Kids Z-Rack

Textiles Workstation #1

Textiles Workstation #2

Salvage Range Box

Salvage Range Box Processing Table

Garbage

Recycle

Garbage

Recycle

Processing Table

Women's Z-Rack

Blue Cage

Blue Cage

#4 Person Sorting

#2 Person Sorting

Women's Z-Rack

Men’s & Kids Z-Rack

Men’s & Kids Z-Rack

The Foundation

Work in Progress (WIP)

8:00pm

The goal of any Lean practice is to maximize value for the customer while eliminating waste. WIP limits (work-in-process limits) are fixed constraints, typically implemented in production facilities to help teams actively eliminate waste from their processes. WIP limits enable teams to optimize their workflows for value delivery. WIP in Goodwill productions is dangerous. When the day ends there should be no WIP. Example: z-racks that haven’t been tagged and stocked. Shiny carts that have not be stocked. These left behind dollars can disrupt your daily sales budget . Lean says- “Stop starting, start finishing” .

Sustaining Kaizen/Lean

Success is the “why”.

Sometimes we think Production is just that, production. It’s a tad messy, a little dirty and things are not always perfect, but it’s ok it’s a production. Success comes with processes put in place to get the desired result. Cleanliness plays a major roll in the Kaizen/Lean process.

The Foundation

Everything Has a Home

Everything single thing in production has a home Like all of us sometimes employees are in a rush or even worse haven’t been fully trained when it comes to how and why it is important to ensure things get put back in their proper spot. Every broom, tote, hand truck, piece of furniture has a home, and if not put it’s in proper spot waste comes into play . Time looking for something equals money. Yep, even when it come to looking for a broom. Let’s do the broom math – (3 employees look for a broom 3 time a day for 3 min. = 9 min. X 30 days = 270 min. = 4.5 hrs. month of time looking for a BROOM. WOW! Waste come in all types of ways).

The Foundation

Why is that there?

We know that everything has home according to our CAD map However, new things just pop up. One day you will see a bunch of retail fixtures just sitting in an area in production and everyone will work around it. Why? You must ask “why is that there”? In the world of it was just there. Training and follow-up, puts you in the driver's seat to make things easier for staff and their successful! Inorganization causes stress and frustration to all employees which turn into low performance and moral after time.

Maintaining The Foundation

6-S’s = Maintenance Waste Prevention Leadership Lean

6-S’s The first step in creating cellular production! It is a lean process improvement tool that stands for: 1. Sort 2. Set in Order (aka Straighten or Stabilize) 3. Shine (aka Scrub or Sweep) 4. Standardize 5. Sustain 6. Safety

This tool is to be used by leadership weekly to discuss efficiency and how to make it easier for staff and to ensure positive results.

You can find this doc. On SharePoint under Process Improvement.

Maintaining The Foundation

6-S | Sort Leadership Lean

Daily, remove items you don’t need; keep what you do!

• 5-Minute Drills (Supplies) • Equipment

If 5-minute drills are not done daily staff start to clutter their workstations making it hard for them to make Standards/Goal, which hinders their succuss.

Maintaining The Foundation

6-S | Straighten Leadership Lean

Straightened

Not Straightened

Maintaining The Foundation

6-S | Sweep Leadership Lean

Keeping It All Clean

Cleaning and Organization sometimes gets forgotten about and when that happens production facilities become dusty, cramped and not very enjoyable to work in. Place tools in easy find and put away areas.

Maintaining The Foundation

6-S | Standardized Leadership Lean

Tools For Employee Success

• Set Standards • Process Documents • Visual Merchandising • Goodwill Branding

Maintaining The Foundation

6-S | Sustain Leadership Lean

Daily Check-In

Range Box

• By making it a habit! • Utilize “6S Checklists” • Proactively identify Waste

Recycle

Garbage

Processing Table

That slows you down 

Tote Table

• Continually look for ways to improve! • Seek out and welcome “good change”

Shiny Cart

Full Totes of Product

Empty Totes

Entrance of Product

Exit of Product

Maintaining The Foundation

6-S | Safety Leadership Lean

“Hey Boss I Saw Something”

• Create a safety culture • Each and every employee has the right to work in a safe place • Let staff know “if you see something say something”

Maintaining The Foundation

Root Cause Leadership Lean

Helping Remove Daily Hurdles with a Detective Mindset

Ask the questions. “Hey, I noticed your Salvage range box is very full. How long have you had your Red light on waiting for it to be changed out ”? Take the time make sure there is a Production Support Person assigned each day. All Kaizen/Lean processes were set up to work with everyone's success in mind. Make sure that success can happen!

In Closing

Maintaining the Foundation that is already set up is the key to everyone success. Remember, waste is one of the biggest hurdles and over time can take down a Production bringing negative dollars to the bottom-line. It comes in many forms so keep on the lookout and train others to do the same. Lastly, building a LEAN culture means talking about it and ensuring everyone knows the why behind it.

Seattle Goodwill Foundational Standards Production Departments

For New & Existing Store Leaders & Management

Course 2 Standards

Success is the “why”.

This program is set-up and engineered to make staff successful. Leadership's role is vital for this program's realization. Success might seem obvious. Of course, we want everyone to be successful, right? That’s were Production University ensures that you and your team are just that, successful. This program works if followed with desired end results achieved.

The Tie In

In the previous Courses we saw how KAIZEN & LEAN ensures that all staff have the foundation to be successful. Standards only work because of the KAIZEN & LEAN foundation . These two things go together to ensure business unit growth. Goodwill Standards puts success in the hands of leaders and staff.

Let’s look!

What can Standards do for employees?

What are Standards

Standards

Standards provide people and organizations with a basis for a mutual understanding , and are used as tools to facilitate communication, measurement, commerce and production/manufacturing . Standards play an important role in the economy, by providing consistency between new and existing products, services and process.

What are Standards

Standards at Goodwill

Each stores sales budget is created from Production Minimum Standards . Each departments standard contributes to a portion of the total period and quarterly/yearly sales budget. This also applies to labor as well. If Standards are not made it affects the stores sales budget, wages and mission support.

What are Standards

Standards at Goodwill

Our standards tie into our KAIZEN & LEAN practices.

+ STANDARDS +

=

Standards were created in 2005 by Process Improvement. For 6 months they time studied many, many employees to find an average sort time (* some employees produced a lot more than our current standards today) of proper produced items. The results of there endeavors lead to our Production Minimum Standards.

What are Standards

Standards at Goodwill

Production Minimum Standards Per Department

Large Electronics, Large Toys, Audio/Visual, Target Items, New Goods and Furniture have no Production Standard. The standard or amount of items produced for these departments should discussed with staff producing in these departments.

What are Standards

Standards at Goodwill

Production Minimum Standards Per Department

Without Material Handler Support Assigned Each Day No One Can Do It!

These numbers/standards can only happen if Material Handler support is assigned each day. Their daily duties consist of:

• Taking away salvage on time • Taking away missorts on time • Garbage is emptied on time

• New Cages with product are replaced immediately • New Totes with product are replaced immediately • Cleaning and sweeping production throughout the day

Plain and simple. If you do not have consistent Material Handler support staff is unable to make their Standards/Numbers.

Success For Everyone Takes Engagement From Store Leaders

What are Standards

Setting the Stage

Leaders at the top should articulate a Production vision to all store leaders , describing the overriding goals of the store and how those goals serve both the store, organization and its customers. Second, leaders at all levels should communicate and model those goals to each employee (in a group and individually), ensuring that everyone in the store/production is on the same page . Those supervising people daily— should help all employees see how their own individual actions play a role in achieving the organization’s goals . This provides clear direction that allows staff to have meaningful work that everyone should have a chance to get.

What are Standards

Checking In vs. Checking Up

If you’re a leader, setting and communicating clear, inspiring store goals is hard enough. Giving people real self-sufficiency in deciding how to achieve those goals is even harder. Perhaps the most important thing you can do is to adopt a mindset of “checking in” with your employees rather than “checking up” on them . If you are mostly asking employees whether they finished this task or that task, then you are checking up on them. If you are constantly monitoring how people achieve their goals, then you are checking up. This classic micromanagement style, makes people feel that their judgment, talents, and skills are not valued . As a result, it kills both motivation and creativity.

What are Standards

Checking In vs. Checking Up

So, what does “checking in” look like?

Try asking questions like:

In this way, you can check in with people and find out how their work is coming along without making them feel as if they are under constant surveillance. And, more importantly, you will be in a much better position to provide your people with the resources and help that they really need. Finally, checking in — if done well — means sharing information that allows for open communication to happen more easily and prevents surprises down the road. “What do you need to get this project done?” “Is anything getting in you way?” “or “W at can I do to help out?”

What are Standards

Checking In vs. Checking Up

Checking in is about collaboration; checking up usually feels a bit suffocating.

Standards Work, When Leaders Plan

What are Standards

Leadership Engagement

Standards can seem tough to make at first for employees. So, what is the formula for making minimum standards? 5 major components to making standards work: 1. Leadership – Support, follow-up and checking–in (sharing produced numbers throughout the day, at least twice a day) 2. Understanding - Process, Condition, Pricing and Kaizen/Lean (training) 3. Material Handler Support – Salvage, replenishing of product, garbage, recycle and undersorts 4. Pace – Solid, steady producing pace (not too slow and not too fast) 5. Not moving from your area/workstation - (the less steps you take the better)

What are Standards

Standards Foundation

Store Leadership

Proper planned and executed on-boarding is the start for success and understanding for a new hire. Ensuring that enough time is taken for training will build a fulfilled and successful employee . This takes everyone from Buddy Trainers to Store Leaders.

Buddy Trainer

What are Standards

Standards Foundation

So how long does it take to get a new hire up to Minimum Production Standards?

The question was asked to many employees who work in production and the average and was 30 Days.

Successful Production Daily

Starting the Day

#1 Getting Ready To Start

This tool is a must in proper planning of daily production assignments. It takes the guess work out of knowing “which employee knows what”. This tool helps the whole team. When filled out, you can see at a glance who can effectively work in which departments. This Matrix has tasks and jobs throughout the front and back of the house. It is an excellent time saving when planning your day and a great way to track cross training.

This can be found on SharePoint – Department – Training – Manger Info.

If your store does not have a Training Matrix filled out, then this is truly a great way to connect with staff and see what they want to learn now and in the future.

Starting the Day

#2 Getting Ready To Start

This can be found on SharePoint – Department – Training – Manger Info.

The morning rally sets the tone for the day and at the end of the rally assigning employees to work in departments is a must to ensure that all departments produce goods for the day. The idea to utilize each employees time to cover what is needed. This takes planning. Let’s take a look:

1. 2. 3. 4. 5. 6. 7. 8. 9.

Henry

• Number of departments needed to be produced in 16 • Number of employees for the day 7

10. 11. 12. 13. 14. 15. 16.

The Production MOD Rally sheet to the left can really help ensure everything gets covered. Each department is broken down Daily Department , Production Standard , Store Goal and Scheduled Table Time which auto-populates after you enter the store goal.

Henry

Starting the Day

#2 Getting Ready To Start

Utilizing/assigning employees time to produce in multiple departments is key for ensuring all departments get produced. Which must happen to ensure you have a well rounded sales floor of new product for customers. In order for this to happen staff must be fully cross trained.

Henry

1. Steve – Accessories, Shoes, Sports and Toys | Cross trained 2. Crystal – Audio/Video, Books, Furniture | Cross trained 3. Henry – Audio/Video, Books, T-Wares | Cross trained 4. Beth – Electronics, Linens, Wares | Cross trained 5. Sara – Fashion Focus, Ladies, Mens, Kids | Cross trained 6. Tim – Fashion Focus, Ladies, Mens, Kids | Cross trained 7. Abdi – Wares | Cross trained

Henry

Starting the Day

#3 Moring Kick Off

The morning rally sets the tone for the day. Recapping the previous days wins, opportunities, up coming events, store sales and reviewing production goals and standards. Lastly, assigning employee to their departments to work in.

Starting the Day

#3 Moring Kick Off

Goal Board Is You Rally Area!

The easiest way to keep staff engaged is to review numbers from the day before. The goal board really highlights what needs to focused on and what needs to be maintained. These commonsense business conversations are a part of someone's success. Positive or negative it all goes to building a better employee. Without knowing how your doing is not fair to someone's ability to improve. Most people want to improve!

Starting the Day

#4 Starting Off On The Right Foot

5 Minute Drills

Daily 5 Minute Drills ensure that the right number of tools are available for the day, no more, no less. Daily 5 Minute Drills prevent staff from needing to leave their station to find missing tools. Time away from the station is time away from making goal. At the end of the Moring Rally announce to staff “No is time to due your 5 Minute drills”. I’ll be here if you need any supplies!

Posted on double goal post and in department binder at each station.

Standards

#5 Check In/Observation

Range Box

Most people want to be Successful. Really, very rarely when someone starts a job they says, “ I’m hoping to fail quickly at my job and then get a bunch of PIP’s and get terminated in say, a week and half” . It just doesn’t happen. That is why as Leaders asking do you have any hurdles slowing you down has to happen. Your top hurdles in Production that need to be removed will always be the same! 1. Lack of efficient Material Handler help/support. Not assigned. 2. Lack of tools or broken. 3. *Leaving/being pulled from the Workstation to often. 4. Messy/Cluttered Workstation. 5. No/Not enough product at the beginning or throughout the day. 6. Not understanding the process. Lack of training.

Recycle

Garbage

Processing Table

Yeah, but what about my goal/standards?

Hey, Can you help in donations?

Tote Table

Shiny Cart

Full Totes of Product

Empty Totes

Entrance of Product

Exit of Product

Standards

8:30am

#6 Moring Time Wasters

Ensuring someone's success means making sure they have everything they need. It just doesn’t happen. Sometimes you just don’t know that a process is broken. In this scenario the staff from the night before did not fill all workstations with product so staff cannot get started on time. What usually goes along with this is what called “morning bailout”. This is where all the donations from the night before that did not get processed get stored throughout production and Material Handlers spend anywhere from 30 min to 1 hour putting everything back outside. This is considered KAIZEN & LEAN waste and can cause and entire production to goals and standards for the day or if it goes on for weeks. This also a huge waste of labor cost.

Range Box

Recycle

Garbage

Processing Table

I see you haven’t produced anything. What happened?

I have no product. I’m waiting.

Tote Table

?

Shiny Cart

Full Totes of Product

Empty Totes

Entrance of Product

Exit of Product

Press Stop

Take a 10-minute break.

Come back and hit play!

Not Making Individual Standards/Goals Removing Hurdles

Standards

Common Sense Conversation For Their Success

This seem like an easy answer. Please “ Go faster” you will make you standards! Right? That is almost never the solution. 9 times out of 10 the there is a hurdle impeding someone's success. This were lean comes in and can truly help get on the track to success. Leaders need to be available to talk with staff one-on-one and ask staff the following when this happens :

Production Employee

Store Leadership

1. Do you know the Production Standard for your department? 2. What’s in your way from making Standards? 3. Remove the hurdles and see what happens.

These office conversations show employees you have a true investment in the employee and the business. Plus, you might be surprised what you hear.

Standards

Time Study Form

Time Studies are great way to help see what is Really Going On when an employee is not making standards. This process shows staff that you are really trying to help them succeed! It takes time but the outcome shows both you and the employee where the waste is. You will truly be surprised what you might see. Sometimes it’s something small or large. However, this observation shows all leaders that its not something as easy as going faster to produce more items . This form with instructions is found on SharePoint – in the departments drop down – Process Improvement – Tools ( 6S, 5 min drill, signage, etc.)

Standards

Training – Helping them get there

Helping staff that are not making standards through continued training is time well spent. Some employees might not have got all the training at the beginning or did not comprehend what was being taught. When Buddy Trainers are not on-boarding new hires, they are a great source for retraining or cross training. The time spent for both the Buddy Trainer and employee helps build practice for both and should pay off in the long run.

Standards

The Mental Battle

There are 2 types of thoughts surrounding Standards for staff.

2.

Management here know I’m not quite making standards but they are trying to help me and have my best interest in mind and really do want to see me grow and be successful. They take time out to speak with me and paint a clear picture of what I can do to make it. I can see they also ensure I get the support I need from others. I can do this! The Store Leaders Really Are Trying to Help Me! 1.

My Boss Wants Those Numbers!

Every day my boss drops by and says “you need to make standards today”. If the managers keep pushing me about numbers without any help I’m outta here! I know Steve and Abdi feel the same way! All numbers and no support! The only thing that happens in this scenario is self –doubt. You can bet if one employee feels this way so do others. This approach ultimately causes low morale and heavy turnover.

When Staff Are Making Standards

Here’s what to look for.

1. Has the employee been trained? 2. Does employee know goal/standard? 3. Check to see if Material Handler support is happening to standard? 4. Does employee have a flashing Red Light? 5. Is there enough product? 6. Is tagger supporting sorter? 7. Is the workstation laid out to KAIZEN standards? 8. Does employee have all necessary tools? 9. Does employee have personal effects or saved items taking up workspace?

If all these items are a “yes” then you look at the sorters speed.

Stronger, More Effective Employees

Standards

Sharing Data

Leaders sharing store numbers/data with staff is a must . This data/numbers should be discussed in weekly rallies, in addition to multiple times a day. This gives employees info to make themselves successful. By sharing numbers often employees can course correct with given information. Without it, they don’t know if what they are doing is making an impact or not. Leaders need to know and understand data just as much as staff. This step also promotes employee growth!

Standards

Working Organically

Managers assigning employees to work in production departments each day usually works. However, if an employee is just not making standards or goals and you have put in the work to help them. Ask them, “Is there another department you have an interest in? Where people want to work sometimes needs to grow organically. This model involves a natural selection process, in which staff pick-up processes faster and get better results more quickly because they want to do something they have an interest in and because of that feel valued, heard and engaged.

What are Standards

Helping Keep Staff From Being Drained

BURNOUT

Sometimes you might have a lot of call outs, to many scheduled vacations or just down people. When this happens usually staff that are there are trying to pick up the slack. That can work for a couple days or maybe a week but anything longer puts pressure, frustration and causes overall job dissatisfaction and exhausted. In a nutshell employees get tired they just don’t want to come in. So, what is a manager to do? Set realistic goals during these hard times and let staff know they need to stay the course and do there best. The next set of slides shows what can sometimes happen when leaders forget.