LEAN Innovations, KPI’s, Policies, Multi-site Data and Pricing

Conceived and Implemented By

Lauren Larsen

About Lauren Larsen

Manager that is dedicated to engaging staff and employeesLEAN expert focusing on the Value Stream of the operation and

wastesInnovator who successfully solves problems to increase productivity

and quality Effective communicator with all levels from employee, senior

management and national customersSuccessful leader who can build and develop highly effective teams

that produce organization cultures of collaboration and successTechnical and quality expertise in several industries such as plastics,

containers, coatings and with government contracting servicesPart-time teacher of core manufacturing, building operations systems ,

and MS office software classes at a non-profit organization

P&L and Key Performance IndexMinneapolis 2010Comments Trays 74c/74EC Jan Feb March April May June July August Sept Oct Nov Dec Yearly Totals

Pro. Rev. 186,564.27 165,119.39 178,864.26 148,807.30 137,312.62 148,749.47 117,252.57 126,402.22 122,969.86 121,484.61 122,457.51 136,267.82 $ 1,712,251.92

FG Rev. 15,652.50 13,028.64 22,677.96 23,167.48 16,068.14 18,011.05 21,326.02 20,925.12 21,784.97 20,936.53 27,228.08 24,406.45 $ 245,212.95

Sub-total 202,216.77 178,148.03 201,542.22 171,974.79 153,380.76 166,760.52 138,578.59 147,327.35 144,754.83 142,421.14 149,685.59 160,674.27 $ 1,957,464.87        

Facility 80,592.83 80,592.83 80,592.83 80,592.83 80,592.83 80,592.83 80,592.83 80,592.83 80,592.83 80,592.83 80,592.83 80,592.83 $ 967,113.96

Core Staff 77,252.12 77,252.12 77,252.12 77,252.12 77,252.12 77,252.12 77,252.12 77,252.12 77,252.12 77,252.12 77,252.12 77,252.12 $ 927,025.44

Basic Ops 92,271.96 92,271.96 92,271.96 92,271.96 92,271.96 92,271.96 92,271.96 92,271.96 92,271.96 92,271.96 92,271.96 92,271.96 $ 1,107,263.52

Sub-total 250,116.91 250,116.91 250,116.91 250,116.91 250,116.91 250,116.91 250,116.91 250,116.91 250,116.91 250,116.91 250,116.91 250,116.91 $ 3,001,402.92

Miscellaneous 34,491.18 47,579.60 15.00 0.00 16,739.30 0.00 45,035.88 36,117.69 44,128.86 19,759.14 26,796.11 23,547.03 $ 294,209.78

Total Rev 486,824.86 475,844.53 451,674.13 422,091.70 420,236.97 416,877.43 433,731.38 433,561.95 439,000.60 392,538.05 426,598.61 434,338.21 $ 5,233,318.43

CR REV sep. 23,099.15 19,489.02 25,231.65 22,406.25 21,614.44 24,681.83 20,190.98 23,590.24 20,983.81 19,271.41 18,734.37 19,736.34 $ 259,029.49   Jan Feb March April May June July August Sept Oct Nov Dec

Labor Cost 143,975.72 114,327.01 138,778.53 140,314.27 111,511.39 113,491.00 116,835.80 113,838.04 123,109.64 113,121.32 117,744.09 129,275.42 $ 1,476,322.23

Labor Ben. 54,724.27 57,133.92 55,993.86 67,456.96 49,320.79 45,396.51 42,831.52 33,661.32 100,798.22 44,928.44 38,376.82 25,209.67 $ 615,832.30

Adm Cost 54,128.65 28,288.65 46,693.41 75,118.55 60,542.25 37,117.09 37,495.42 36,081.39 33,631.28 32,432.44 34,099.17 37,386.87 $ 513,015.17                          

Total Labor Cost 252,828.64 199,749.58 241,465.80 282,889.78 221,374.43 196,004.60 197,162.74 183,580.75 257,539.14 190,482.20 190,220.08 191,871.96 $ 2,605,169.70

Staff Level 50.00 50.00 49.00 47.00 43.00 43.00 42.00 41.00 41.00 42.00 42.00 42.00Work Days 21.00 20.00 22.00 22.00 21.00 22.00 22.00 22.00 21.00 22.00 21.00 22.00Holiday 2.00 1.00 0.00 0.00 1.00 0.00 1.00 0.00 1.00 1.00 2.00 2.00

July 5th partial Ware. Poss. Hours(1) 9,104.00 8,352.00 8,624.00 8,272.00 7,520.00 7,568.00 7,680.00 7,216.00 7,168.00 7,680.00 7,632.00 7,968.00Labor$perDay 9,461.90 8,573.05 8,853.29 9,444.15 7,310.55 7,222.16 6,942.06 6,704.52 10,177.63 6,871.73 6,787.87 6,436.88Pro Hours(2) 4,444.62 4,017.65 4,248.47 3,530.65 3,159.25 3,489.99 2,842.84 3,046.42 3,012.87 3,151.69 3,207.37 3,593.07CR Hours 469.12 384.65 518.79 460.24 425.67 485.37 407.14 446.55 451.74 417.52 394.00 399.62Ware Hours 1,619.58 1,554.58 1,712.02 1,489.32 1,169.28 1,268.67 1,356.72 1,306.97 1,238.08 1,260.37 1,312.97 1,408.20Plant Wide Hrs 8,036.88 7,399.32 7,644.17 6,477.97 5,992.45 6,634.74 5,776.22 6,370.75 6,318.72 6,021.54 6,059.42 6,597.48 Jan Feb March April May June July August Sept Oct Nov Dec Yearly TotalsTot. Rev/Pt. Hrs 60.57 64.31 59.09 65.16 70.13 62.83 75.09 68.06 69.48 65.19 70.40 65.83 $ 65.65 Tot. Rev/Poss Hrs 53.47 56.97 52.37 51.03 55.88 55.08 56.48 60.08 61.24 51.11 55.90 54.51 $ 55.17                            Pro Rev/Pro Hrs 36.78 36.25 36.16 35.80 36.62 35.55 34.14 33.75 33.85 38.55 38.18 37.93 $ 35.63 FG Rev/Ware Hrs 9.66 8.38 13.25 15.56 13.74 14.20 15.72 16.01 17.60 16.61 20.74 17.33 $ 13.31 CR Rev/CR Hrs 49.24 50.67 48.64 48.68 50.78 50.85 49.59 52.83 46.45 46.16 47.55 49.39 $ 50.16 ProFG Rev/Pt Hrs 25.16 24.08 26.37 26.55 25.60 25.13 23.99 23.13 22.91 23.65 24.70 24.35 $ 25.00

P+FG Rev/ProCRWareHours 30.95 29.91 31.11 31.38 32.26 31.80 30.08 30.69 30.78 29.49 30.46 29.75 $ 31.02 Labor $/Pt Wide Hrs 31.46 27.00 31.59 43.67 36.94 29.54 34.13 28.82 40.76 31.63 31.39 29.08 Labor $/Poss Hrs 27.77 23.92 28.00 34.20 29.44 25.90 25.67 25.44 35.93 24.80 24.92 24.08 To. Labor/Days 10,992.55 9,511.88 10,975.72 12,858.63 10,062.47 8,909.30 8,572.29 8,344.58 11,706.32 8,281.83 8,270.44 7,994.67 2010 Jan Feb March April May June July August Sept Oct Nov Dec Yearly Totals% ROI 13.90 24.70 12.50 -1.20 11.60 17.70 19.00 23.60 6.90 19.80 13.50 22.80 15.5Monthly Profit $ 67,537.09 117,450.77 56,465.64 -4,953.90 47,861.38 74,012.63 82,473.96 102,443.62 30,123.93 81,707.85 53,930.63 105,155.90 $ 814,209.50 CommentsProfit/ Pl Hrs Worked 8.40 15.87 7.39 -0.76 7.99 11.16 14.28 16.08 4.77 13.57 8.90 15.94 $ 10.30

Benefits and Wages Calculations 1. Percentage of benefits to wages; includes payroll taxes, medical, workers comp, and incentive pay

35.93% Varies due to portion of taxes.

2. Percentage of payroll taxes to wages; included in OT calculations9.63%

3. Figures taken for the 1st quarter of 2007

4. Standard efficiency value will be 168% or $1.68 incentive as given estimates. Other benefits paid at 40 hours medical, workers comp and small change to incentive

Standard Labor Wages and Benefits (hourly)

Functions Wage Payroll Taxes All Benefits Total Cost9.63% 35.93%

MH $ 16.04 $ 1.544 $ 5.763 $ 21.80

Forklift $ 17.74 $ 1.707 $ 6.374 $ 24.11

Logistics $ 18.04 $ 1.736 $ 6.482 $ 24.52

Yard Dr. $ 20.39 $ 1.963 $ 7.326 $ 27.72

Mechanic $ 21.24 $ 2.044 $ 7.632 $ 28.87

OT Labor Wages and Benefits (hourly)

Functions OT Wage Payroll Taxes Incentive w/ Taxes Total Cost9.63% See 4

MH $ 24.06 $ 2.316 $ 3.996 $ 28.06

Forklift $ 26.61 $ 2.561 $ 4.241 $ 30.85

Logistics $ 27.06 $ 2.605 $ 4.285 $ 31.34

Yard Dr. $ 30.59 $ 2.944 $ 4.624 $ 35.21

Mechanic $ 31.86 $ 3.067 $ 4.747 $ 36.61

Minneapolis MTESC Safety Incentive Program

Program Goal: At the Minneapolis ARI MTESC, our goal is that each employee works safely and is provided a safe work environment. The Minneapolis plant has a several year history of being effective in achieving a safe work environment with very few if any Lost Time accidents. Due to our demonstrated ability to work safely a monetary reward program is being implemented to share with all employees the benefits of creating and maintaining a safe working environment.

 Program Outline: On January 1, 2003, the Minneapolis Safety Incentive Program will be implemented. The plant will for each 3

calendar month period will be awarded $50 of safety incentive pay to each employee for work safely.  Program Rules: Successful completion of working safely will be measured against the 3 rules. 1. No Lost Time injuries during the period. (1)2. Five or less minor injuries requiring a doctor’s visit. (2) 3. No failure to report an injury resulting in a doctor’s visit or obtain necessary medical treatment of a work injury .  (1) Lost time injury is a work injury that a medical professional prescribes absence from work for treatment of the injury.(2) A minor injury is one requiring a medical professional treatment, but does not include “Lost Time”. Payout: The payout will be in one of the following payroll periods after the completed 3 calendar month period (must be an ARI

employee during safety period and at time of payout). Each eligible employee will receive the Safety Incentive.  Note: These program guidelines is for information and illustrative purposes and are in no way meant to be a contract of

employment or guarantee of continue employment for any specific period of time. The rules contained in the Minneapolis MTESC ARI Safety Incentive program are for illustrative purposes and are not considered being exclusive. No program or policy can anticipate every circumstance or question, therefore, we reserve the right to unilaterally amend or withdraw this program or policy at any time with or without notice for any reason it deems appropriate.

1/7/

2011

1/14

/201

1

1/21

/201

1

1/28

/201

1

2/4/

2011

2/11

/201

1

2/18

/201

1

2/25

/201

1

3/4/

2011

3/11

/201

1

3/18

/201

1

3/25

/201

1

4/1/

2011

4/8/

2011

4/15

/201

1

4/22

/201

1

4/29

/201

1

5/6/

2011

5/13

/201

1

5/20

/201

1

5/27

/201

1

6/3/

2011

6/10

/201

1

90.00

110.00

130.00

150.00

170.00

190.00

Plant Percentage Efficiency 2011PHILADELPHIA

SPRINGFIELD

MINNEAPOLIS

SEATTLE

SAN FRANCISCO

Warehouse Change from Efficiency KPI4/

14/2

003

4/19

/200

34/

24/2

003

4/29

/200

35/

4/20

035/

9/20

035/

14/2

003

5/19

/200

35/

24/2

003

5/29

/200

36/

3/20

036/

8/20

036/

13/2

003

6/18

/200

36/

23/2

003

6/28

/200

37/

3/20

037/

8/20

037/

13/2

003

7/18

/200

37/

23/2

003

7/28

/200

38/

2/20

038/

7/20

038/

12/2

003

8/17

/200

38/

22/2

003

8/27

/200

39/

1/20

039/

6/20

039/

11/2

003

9/16

/200

39/

21/2

003

9/26

/200

310

/1/2

003

10/6

/200

310

/11/

2003

10/1

6/20

0310

/21/

2003

10/2

6/20

0310

/31/

2003

11/5

/200

311

/10/

2003

11/1

5/20

0311

/20/

2003

11/2

5/20

0311

/30/

2003

12/5

/200

312

/10/

2003

12/1

5/20

0312

/20/

2003

12/2

5/20

0312

/30/

2003

0

20

40

60

80

100

120

140

160

180

200

Warehouse labor reduction with my Efficiency Program Implemented

LoadedPolynomial (Loaded)UnloadedPolynomial (Un-loaded)Dept. Hours

% Price Change All SitesSITE NAME Long Island, NY Minneapolis, MN Phil, PA San Fran, CA Seattle, A Springfield, MA  Eff 12/01/09 Eff 11/01/09 Eff 11/01/09 Eff 12/01/09 Eff12/01/09 Eff 12/01/09  Unit Price Unit Price Unit Price Unit Price Unit Price Unit Price               Product Group Nylon Mailbags -3.2% -8.0% -6.3% -2.6% -8.9% -9.5%Plastic Mailbags -3.2% -7.9% -6.1% -2.5% -8.8% -9.5%Canvas Mailbags -3.1% -7.9% -6.1% -2.5% -8.7% -9.5%01V Plastic Mailbags -3.2% -7.9% -6.1% -2.5% -8.8% -9.5%03V Plastic Mailbags -3.2% -7.9% -6.1% -2.5% -8.8% -9.5% Tray ProcessingSmall Plastic Trays -4.6% -7.6% -6.4% -3.0% -7.7% -10.6%Large Plastic Trays -4.7% -7.6% -6.4% -3.0% -7.4% -10.9%Sleeves -4.0% -8.0% -6.4% -2.8% -8.7% -10.1%Lids -3.9% -8.1% -6.6% -2.9% -8.7% -9.8%Small Cardboard Trays -4.6% -7.6% -6.3% -3.0% -7.7% -10.8%Large Cardboard Trays -4.7% -7.2% -6.2% -2.9% -8.1% -11.1%AVE OF MB and TSL -3.8% -7.8% -6.3% -2.7% -8.4% -10.1%Pallet ProcessingPallet Processing -5.0% -9.4% -8.8% -4.6% -9.9% -13.7% Container ProcessingContainer Processing -2.9% -10.8% -11.7% -6.3% -9.6% -16.3% Container Mechanical RepairRepair Hamper r -3.8% -5.8% -3.8% -4.4% -11.9% -11.1%Repair UMC -2.9% -5.1% -2.6% -4.4% -11.8% -11.3%Repair 3909 GPMC -3.0% -5.2% -2.8% -4.4% -11.8% -11.3%Repari 3910 OTR (HD) -3.0% -5.2% -2.8% -4.4% -11.8% -11.3%Repair ERMC -2.9% -5.1% -2.6% -4.4% -11.8% -11.3%Repair Wiretainer (RWIRE) -3.1% -5.2% -3.0% -4.4% -11.8% -11.2%Repair 1046P Hamper -3.6% -5.7% -3.6% -4.4% -11.9% -11.2%Repair CON-CON 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%Repair 84C CWIRE 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 

Automatic Bander and WrapperEliminated manual banding and wrapping and moved 5 FTEs to added value functions

Induction Finished Goods

Automatic Conveyor and TurnEliminated manual transportation of FG pallets from Processing to the Shipping docksInventory improvement with single file data entry by conveyor

300 ft conveyor Turn

Material HandlingCreated automatic box tipper and reduced MH labor for handling this productDesigned a high volume shipping area to increase loading capacity and reduce warehouse travel

Automatic Gaylord tipper

Finished Goods order staging

Automatic Tray FoldingLEAN Initiate: reduced set up time from 1 ½ days to 30 minutesIncreased output capacity by 300% with this automation

Tray Folding unit 1 Tray Folding unit 2

EHS – Safety innovations Installed protective barriers in tight forklift

areas to protect team members and materials.

Installed protective barriers around 480 electrical areas.