1. Presenter: Mike Elsholz Company: Steelcase Inc. History: 25 years experience Engineering Project Management Test Lab Supervisor Model Shop Manager Outside interests: family, golf, football, wood working. 1 Managing Projects and Work Flow

2. 2 Victor Steelcase's history of innovation and sustainability began 100 years ago with Victor, a metal wastebasket designed to reduce fires caused by ashes in wicker wastebaskets.

3. Business Strategy and Objective Shop Layout Strategy Workflow Project Tracking Use of a database Procedures and Safety 3 Presentation Outline based on my recent Model Shop transformation/move Questions are welcome

4. Identify your business: What do you do Who are your customers What is your focus What is your core competencies (areas of strength) What is your work environment Functional model vs. soft visual models 4

5. Opportunity for Reinvention 5 Steelcase CDC

6. Opportunity for Reinvention 6 Steelcase CDC

7. Opportunity for Reinvention 7 We were planning to move out of CDC Should the model shop move Disband, move as is, move and modify Shop size (sq. footage) Evaluated who we are What we wanted to be Determined our strengths

8. An internal shop of a large Corporation Support New Product Development Our Customers are Engineers/Designers Show rooms Mock-ups for customers Facilities Sales Other Philosophy on Modeling Build to learn Build it, see it, touch it Repetitive model builds Visual and factual Hands on modeling (design and engineering) Who we are 8

9. We Focused on our Capabilities core competencies Sheet metal Upholstery Wood Painting Welding Assembly other areas Machining CNC milling 3D printing 9

10. Outsourced Capabilities CNC milling 3D printing Casting Molding; vacuum, injection, … 10

11. Model Shop Reinvention Mission statement: An integral component of New Product Development that is a collaborating part of Design and Engineering thinking. Making design ideas tangible and assessable through quality modeling and providing hands on learning. A part of the building of intelligence in new product development. Designing and modeling on the edge of solvability. Objectives: Build models collaboratively Providing input and feedback on product designs A source of knowledge Continuously improving turnaround time of prototypes, Excel Can do attitude (not limited) Easy to work with Problem solvers Versatile team with large skill set and experience Agile/Flexible Mission statement: An integral component of New Product Development that is a collaborating part of Design and Engineering thinking. Making design ideas tangible and assessable through quality modeling and providing hands on learning. A part of the building of intelligence in new product development. Designing and modeling on the edge of solvability. Objectives: Build models collaboratively Providing input and feedback on product designs A source of knowledge Continuously improving turnaround time of prototypes, Excel Can do attitude (not limited) Easy to work with Problem solvers Versatile team with large skill set and experience Agile/Flexible

12. Principles A) Modeling makes Design thinking tangible and assessable. A part of the building of intelligence in new product development. B) Modeling as method for hands on learning is integral to New Product Development and the collaboration between Design and Engineering thinking. C) Modeling is a means to defining the edge of solvability. D) Modeling is a tool, as drawing is a tool, and requires immediate and dynamic accessibility. Principles A) Modeling makes Design thinking tangible and assessable. A part of the building of intelligence in new product development. B) Modeling as method for hands on learning is integral to New Product Development and the collaboration between Design and Engineering thinking. C) Modeling is a means to defining the edge of solvability. D) Modeling is a tool, as drawing is a tool, and requires immediate and dynamic accessibility.

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14. RECOMMENDATION: It is critical for New Product Development to have a Model Shop located in close proximity to PD&L where product development is being controlled and design decisions are being reviewed and made. The new Model Shop will have the appropriate capabilities and capacity to adequately support new product development. It needs to be staffed with talented, creative, forward thinking Model Makers that can work in a professional and collaborative environment that fosters creativity. These individuals must be able to interact and share ideas with co-workers, Designers and Engineers. The Environment needs to be conducive to creativity, learning and support a collaborative work space. BENEFITS: Improves PD&L development time lines through faster turnaround on prototyping builds. Improves cycle time on learning cycles which improves PD&L intelligence. Control of our design confidentiality and intellectual property Improves the collaboration between the development teams and the Model Makers which provides better designs from increase learning. Control over Priorities (i.e. “HOT” emergency jobs) NEGATIVES: Larger move cost (relative to a Basic Shop). Larger utility and overhead cost (relative to a Basic Shop). NOTES; Recommendation is based on analysis of our experiences of outsourcing and discussions with leaders with in PD&L (Engineering and Design Directors). RECOMMENDATION: It is critical for New Product Development to have a Model Shop located in close proximity to PD&L where product development is being controlled and design decisions are being reviewed and made. The new Model Shop will have the appropriate capabilities and capacity to adequately support new product development. It needs to be staffed with talented, creative, forward thinking Model Makers that can work in a professional and collaborative environment that fosters creativity. These individuals must be able to interact and share ideas with co-workers, Designers and Engineers. The Environment needs to be conducive to creativity, learning and support a collaborative work space. BENEFITS: Improves PD&L development time lines through faster turnaround on prototyping builds. Improves cycle time on learning cycles which improves PD&L intelligence. Control of our design confidentiality and intellectual property Improves the collaboration between the development teams and the Model Makers which provides better designs from increase learning. Control over Priorities (i.e. “HOT” emergency jobs) NEGATIVES: Larger move cost (relative to a Basic Shop). Larger utility and overhead cost (relative to a Basic Shop). NOTES; Recommendation is based on analysis of our experiences of outsourcing and discussions with leaders with in PD&L (Engineering and Design Directors).

15. Let’s look at our work flow 15 order 3D machining wood assembly Completion $$$ Work Flow

16. What is your work environment? How do you work? Individually/independently Collaborative Creative Hands on Teams 16

17. Analyze your current layout Involve your Team Analyze by area What works well What does not well Wish list Pros/Cons Prioritize Requirements 17 how

18. Our focus was on collaboration and interaction (high to low) High  Office  Benches and assembly area  Sheet metal  Upholstery  Wood Low  welding  painting  Machining  Rapid Prototyping 18 new

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20. 20 Welcome to our new home Jan. 2014

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22. Repurposed an old plant 22

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33. Rapid learnings Hands on modeling Designer and Engineering 33

34. Project Tracking How do you track your projects? Use of work requests – mini form Spread sheets Electronic vs. paper What information do you want to track? Cost Timing Status of projects Work flow Completion Reports 34

35. Database Use of a database can help track work requests, cost, status of work, communication with customer and reports. Assign work request to team leads or model makers 35

36. Database Steelcase We currently are using MS Access as our data base Readily available But has limitations Need some training We are in the process of changing to SAP It our company standard It’s powerful But can be more than you need Need training 36

37. Current Database Back office 37

38. Current request form 38

39. Current Database 39

40. New Database Criteria Improve target areas: Visibility communication Tracking Through put Ease of filling out request, adding tasks, split orders 40

41. New Database Criteria adding tasks and split orders 41 request Model maker Sheet metal Model maker 2 outsource

42. New Database Criteria Work Order/ Request Generate unique number per work order Our work instructions Require: Name, Phone and email Date Needed Cost Center#, WBS# Cost Center Owner Back up Person and Phone# Cost Estimate requested (auto email back to requester) Work Instructions (similar to current) Wood Sheet Metal (s/m) 3D Printing General Model Making Drawings/Prints, Data files linked to WO to include Rev. level Easy work request creation (Auto Population) of new WO and for add on i.e. Button on original WO that uses pertinent information (use of an extension or new request number) Auto Message (email) as to which Model Maker was assigned Auto Message (email) when Work Order completed Bar code generated and assigned to each W.O. for tracking purposes 42

43. New Database Criteria Database Requirements Houses Work Order IP Protection Storage (Data, Prints) 5 years Attach and store prints and pictures Scanned PDF Legacy Data Base Keep? How long? Where? Or convert to our New Database Cross Charge/Finance Team (SAP) Track labor hours and cross charge each month to Cost Center & WBS Track material costs and cross charge each month to Cost Center &WBS Track outsourced costs and cross charge each month to Cost Center & WBS 43

44. New Database Criteria Tracking: Through Shop/Process/Department What do we Track, (outsource, split order, Process Paint, Weld, Laser, % completed, who is currently working on it) Auto email sent to requester each time the status is updated. % complete is updated each day How do we track it (Scan Bar?) scanner throughout the shop Model Maker notes and activity of project captured on Work Order(story) Who sees it (Transparency, Process, on Touch Screen) i.e.. Requester, Model Maker, Cost Center owner Tie Purchase Orders to Work Orders Time/hours work on each job (similar to today) Need to output to Finance 44

45. New Database Criteria Reports Cost by Requester, Person, Cost Center, WBS#, Supplier, In- house, Outsource, and Project Name (Same as Today) We Want Monthly Reports on (General Performance) Number or requests On Time Outsourced Cost to (Requester/Model Shop/Hours) Quality Jobs on the Floor Projects Is every WBS# and Cost Center in SAP? Controlling Data/Reports vs. open to all? 45

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47. Procedures and Safety Set safety procedure and policy Overall shop Each machine Consequences for not following JSA Safe machine operation 47

48. JSA – Job Safety Analysis 48

49. Safe use policy 49