Kanban Material Flow. Uponor

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Manufacturers Alliance Seminar Kanban Material Flow Practical experiences from peers on how to setup material delivery systems to flow just-in-time Uponor Jon Sillerud VP of Operations 1

Jon Sillerud VP of Operations We mean progress. Who is Uponor? Uponor Corporation Headquartered in Vantaa, Finland NASDAQ Helsinki Leading international systems and solutions provider for safe drinking water delivery, energy-efficient radiant heating and cooling and reliable infrastructure Net sales for 2017: 1,170.4 million 4 2

Who is Uponor? Uponor North America Headquartered in Apple Valley, Minnesota 2017 Sales: ~$373.2 million Main distribution center: 285k sq. ft. in Lakeville, Minnesota Manufacturer of 1/3 of all PEX tubing sold in North America Over ~5 billion feet of PEX tubing produced 5 What is PEX? crosslinked polyethylene X PEX PE polyethylene (Milk bottles, shopping bags) Crosslinking PEX - Higher heat resistance - Long-term pressure-holding capability - Resists creeping and cracking - More strength and abuse resistance 6 Uponor 3

Uponor ProPEX fitting system - Designed to work with PEX-a tubing - Trained installers throughout North America - Installed in all weather conditions - Larger ID than other fittings - Thicker walls and more mass than other fittings - Widest selection of configurations - Broadest array of fittings in engineered polymer (EP) and lead-free brass - No external ring/clamp, calibration or gauges - Can t be dry fit The ONLY connection that is 100% visual. 7 What we do Uponor PEX Plumbing Systems Features Uponor AquaPEX tubing with Uponor s ProPEX fitting system for a safe, clean, installation-friendly alternative to copper and other plastics. Uponor AquaSAFE Incorporates residential fire safety and protection with Uponor AquaPEX plumbing systems. Uponor Radiant Heating/Cooling Features Wirsbo hepex tubing for effective design delivering the ultimate in comfort and efficiency. Uponor Hydronic Distribution Uses Wirsbo hepex tubing to transport water to terminal units. Ecoflex Pre-insulated Pipe A flexible plastic distribution piping for a variety of hydronic heating, cooling and hot-water applications 8 4

Reel Supermarket Kaizen: Need and Objectives Need: Reduce the time required to replenish stock from 3 days to 1 day once a customer order has been picked for shipment Objectives: Develop and execute a 1 month trial for 1/2 AquaPEX supermarket Develop a replenishment system utilizing heijunka principles Develop a scheduling method for the extrusion process Identify supermarket locations for 1/2 AquaPEX 9 Before Kanban State Scheduling Mixing Extrusion Recoil DC Finished Goods 3 Day Lead Time 10 5

After Kanban State Scheduling Mixing Extrusion Recoil DC Finished Goods 1 Day Lead Time 11 Supermarket Material handlers remove cards & bring to schedule board every shipment (~3hrs) 12 6

Scheduling list Scheduling creates sorted list so area leads know which machines need ondeck cards 3 hour intervals Name Machine Event Type Size Datecode Reel Nbr Item Length Line042 Running Aquapex 1/2 UB42180222 40 W2005005 2,217 Line015 Running Aquapex 1/2 UB15180222 107 W2005005 3,190 Line034 Running Aquapex 1/2 UB34180222 452 W2005005 3,997 Line163 Running Aquapex 1/2 UB163180222 292 W2005005 6,816 Line098 Running Aquapex 1/2 UB98180222 304 W2005005 7,264 Line184 Running Aquapex 1/2 UB184180222 311 W2005005 7,606 Line188 Running Aquapex 1/2 UB188180222 230 W2005005 7,642 Line109 Running Aquapex 1/2 UB109180222 324 W2005005 9,502 Line038 Running Aquapex 1/2 UB38180222 99 W2005005 9,572 Line013 Tool Change Aquapex 1/2 UB13180222 45 W2005005 9,705 Line018 Running Aquapex 1/2 UB18180222 11 W2005005 11,422 Line101 Running Aquapex 1/2 UB101180221 209 W2005005 12,038 Line106 Running Aquapex 1/2 UB106180221 W2005005 14,765 Line052 Running Aquapex 1/2 UB52180221 330 W2005005 16,567 Line003 Lack of Material Aquapex 1/2 UB03180221 373 W2005005 21,422 Line039 Running Aquapex 1/2 UB39180221 W2005005 21,542 Line067 Running Aquapex 1/2 UB67180221 280 W2005005 25,687 Line155 Running Aquapex 1/2 UB155180221 W2005005 25,880 Line125 Running Aquapex 1/2 UB125180221 379 W2005005 26,190 Line082 Running Aquapex 1/2 UB82180221 48 W2005005 26,240 Line169 Running Aquapex 1/2 UB169180221 W2005005 27,295 Line179 Running Aquapex 1/2 UB179180221 157 W2005005 28,617 Line120 Running Aquapex 1/2 UB120180221 111 W2005005 28,980 13 Scheduling Board - Tier 1 Area Area Leads move cards from board to on-deck area on extruder 14 7

Extrusion 1/2 Aqua only On-deck card will be placed on machine Operator will attach kanban card before reel is inserted into the extruder machine 15 Standard Work 16 8

Lessons Learned Ensure the leaders allocate enough time to ensure the standard work is followed on all 4 shifts Create an audit process early on to understand adherence to standard work 17 Accomplishments Reduced replenishment lead time from 3 days to 1 day Schedulers time reduced (no searching or planning) Increased flexibility to meet the changing needs of the customer 18 9

Thank You! We mean progress. 19 Manufacturers Alliance Thank you for joining us! Visit: www.mfrall.com Call: 763-533-8239 Email: ma@mfrall.com 10