1. Purpose: To help demonstrate the lean principles Time: 1 hour Airplane Exercise

2. Materials Needed 1 Ream of white paper 1 Ream of color paper 1 Box of manila folders 1 package of post-it-notes 2 Stopwatches 2 Boxes of small paper clips

3. Preparation Prepare metrics flipchart (see slide 5) Identify the number of positions for round 1 Identify layout for round 1 Note: It may be helpful to have examples for each position for round 1 to help explain the process.

4. Airplane Instructions – Round 1 7 minute Round Layout should be scattered and NOT make sense. Ie - position #1 by #5 etc. Assign positions and show participants folds Batch Size = 3 pieces of paper in each folder Everyone should work on the folder with the lowest number first At 2 minutes communicate to the 1st operator to start using colored sheets of paper to indicate defects. Only Operator 4 can “see” the colored paper to indicate to Operator #1 to “Stop making bad parts”. At that time Operator #1 returns to using white colored sheets. Key to the airplane exercise is to have 1 person that has more folds than others to create a bottleneck (ie position #3 or #4). Calculate Lead-time by timing the first folder from beginning (operation #1 to finished goods) Prevent operators from making any improvements to the process (ie. moving station) Remember this should be a fun exercise for the team.

5. Record the following metrics each round MetricsRound 1Round 2 Number of Airplanes Shipped WIP (Work-in-Process) Rework Lead-time

6. Metrics Number of Airplanes Shipped –For Round #1 you can not count any airplanes shipped until work is completed for the total batch (3 airplanes) at the last station. Work –in – Process –Work-in-Process are all the airplanes in process but not complete. You need to count the total number of folders (folders with rework are included) x 3 pieces = Total WIP –This metric is pointing out all the inventory that is clogging the system. Rework –Number of folders with colored paper x 3 pieces = Rework Lead-time –The time it takes the first batch to be produced. The time for the first batch for round 1 and 1st airplane for round 2 to be shipped. (Start the stopwatch when position #1 starts and stop the stopwatch when the airplane is shipped).

7. Position #1 Insert 3 Sheets of Paper in the Folder Label for Folder Everyone should be working on lowest numbered folder first (First in First Out) Alert the first operator to start making bad parts at 2 min into the round Position #2 Fold all sheets of paper in half (per example) Round 1 - Positions

8. Position #3 Fold one corner to the center to create a triangle. Fold other side to create triangle Position #4 Fold paper side to center of paper Round 1 - Positions

9. Position #5 Fold corner to center Position #6 Fold other corner to center Round 1 - Positions

10. Position #7 Make a “dog ear” fold Position #8 Fold airplane in half Round 1 - Assignments

11. Position #9 Fold wings (make tip of are plane side flush) Position #10 Fold other side of wing Round 1 - Assignments

12. Additional Positions for Round 1 Position #11 –Add paperclip and write logo Position #12 –Flight Test person – fly airplanes and track number of airplanes shipped Position #13 –Material Handler Position #14 –Time keeper - tracks lead-time of 1st batch Position #15 –Material Handler #2

13. Questions to the team: ­Functional silos – impact on quality/quantity Anyone want to be held accountable for production of whole team? ­Process knowledge – anyone know what others are doing? ­Batching – necessary because all workers are in separate places ­Who’s bored? Who’s not? De-bunk perception that your hardest workers are your best workers ­Where is the bottleneck? How can you tell where the bottleneck is? Why is it a bottleneck? ­How does this round mimic your work area today? (silos, workers who do one job, etc.) Characteristics of Round 1 –Product moves only in batch sizes of 3 –All stations produce independently and work at maximum speed –No communication between stations –Material is pushed to next operation immediately when completed Operation 1 Operation 2 Operation 3 Lot size = 3 1 23 1 23 ROUND 1 Debrief: Batching & No connection between processes

14. Airplane Instructions – Round 2 7 minute Round Balance operations to eliminate bottlenecks and non-value added activities Eliminate the use of folders and post-it-notes Use operator #1 as a value added operator and if applicable use material handlers / timekeepers as value added operators Improve layout to have operators in sequential order Have visual aids for participants to reference Batch Size = 1 = One Piece Flow Use post-it-notes for a kanban (signal) –pacing line to slowest operation At 2 minutes communicate to the 1st operator to start using colored sheets of paper to indicate defects. Only Operator 4 can “see” the colored paper to indicate to Operator #1 to “Stop making bad parts”. At that time Operator #1 returns to using white colored sheets. Calculate Lead-time by timing the first folder from beginning (operation #1 to airplane shipped) Calculate Round 2 metrics

15. Debrief Round 2 Questions to ask in the debrief What changed? Why is a one piece flow better? Why is cross-training better? Do you know where imbalances are? How to correct them? Did you work harder? Where are the best ideas coming from?

16. Fun Facts