MANUFACTURING SAVINGS BY INDUSTRYSECTOR Labor % Savings Labor $'s ($1,000) Material ($1,000)Pharmacy (repack & mail-order) 56% $5,700 $4,200Furniture 63% $737 $600Welding, powder coat, assy. 61% $249 $200Construction (residential & comm.) 90% $520 Medical 56% $9,800 $5,900Ski rental for Vail Resorts 44% $13,000 $7,500SUMMARY (avg. & total) 62% $30,006 $18,400 Automotive 90% $500 $2.4 B.

Lean Black Belt Consultant certified by John Constanza Institute on "Demand Flow" Technology (legacy of Hewlett-Packard), the Toyota Production System, and successful projects:Medco Mail-Order Pharmacy Div. of Merck Sharp & Dome - savings of $355M by reducing labor cost per prescription from $3.25 to $1.48 (55%), reduced order processing time from 3 days to 1.2 days (60%), and inventory turns from 12 to 122 (10x)Vail Resorts Ski Rental - reengineered the ski rental process saving $13M. Conducted time studies of the current process steps, which on heavy skier days exceeded 2-hours, which caused lost future business, missed ski time and ski lessons. Organized a team of experts that formalized efficient process for each rental step, time study of the new future state, determined labor time required and balanced the workload creating an efficient flow of skiers guaranteeing they would be in and out in 15 minutes. Sterling Furniture - reengineered the woodworking and assembly manufacturing process saving $737K. Conducted time studies of the process, created a diagram of the production area and equipment, traced worker steps pickup raw wood materials to woodworking equipment, to assembly (called a spaghetti diagram), identified non-value added work (i.e. waste) which we eliminated, reducing labor time for cabinets, wardrobe and bed set by 63%.Bluebird Lawn Care Equipment - saved $249k by reengineered heavy welding, machining, and assembly of their lawn aerator, de-thatcher, comber, sod cutter, and bagger by reducing labor cost 64%, and inventory, raw & WIP by 68%.Stoneside Window Covering saving $196KCarrier Air-Conditioning - identify key processes for Lean reengineeringNorthwest Pipe - team building and coordinationGreb Div. of Bronfman Industries (Canada) - design, build, and start-up of new distribution centerMarks & Spencer Dept. Stores (S. Africa) - CAD-CAM fabric cutting for apparel

During the period of 1995 to 1998, I was Vice President of Operations for Imagyn Medical Technologies. Reporting to the COO my responsibilities grew to include nine acquisitions, four domestic manufacturing facilities with 440 employees, an operating budget of $30 million, and P&L accountability for two businesses with revenue of $5.8 million. Initially when I joined the company the core business that had been acquired by our the new management team was a contract plastic injection molding and product assembly of “TV infomercial products” that was losing $1 million annually on revenues of $4.8 million. My challenge was clear — bring order out of chaos by developing a management, technical and process infrastructure that would support the strategic plan including integrating acquisitions, convert to manufacturing medical products in a clean room environment, support business growth, regulatory compliance, ISO certification, and achieve profitability. Following a needs assessment, I recruited a new professional staff, established policies and procedures, implemented systems, negotiated contracts, converted the facility from injection molding to medical “clean room” assembly for surgical, electro-surgical and optical instruments. As a direct consequence of my efforts…• Reengineering production processes and implementing lean manufacturing resulted in a 56% reduction in labor cost or a annual savings of $3.3 million, negotiations with key suppliers and improving injection molding efficiency reduced material cost 18% saving $5.9 million, and employee empowerment reduced overhead by $600,000;• Profit margins increased to 68% while revenues grew from $5 million to more than $92 million• Employee Empowerment with no supervision, i.e. one manager mentoring 150 employees resulted in less than 1% turnover, because they enjoyed their work, who they worked with, and wee trusted and appreciated by management• Achieved an operating profit in seven months

Allscripts is a pharmaceutical company that repackages bulk medications into unit of use for physician dispensing; plus mail-order prescription plans.During this period the company's revenue grew from $9 million to $76 million with a compounded growth rate of 167% and profit of $3 million. As a result Allscripts made the INC 50 fastest growing companies.Increased productivity 62% by re-engineering the production/order fulfillment processes resulting in a $1.6 million labor savings, negotiated supplier strategic alliances saving $4.2 million or 16% and increased inventory turns from 5 to 15 with a true JIT system and same-day shipments.

Recruited to Foster Medical a $16 million home health care subsidiary of Avon Cosmetics in 1985, which we grew in 2-½ years to $480 million with a net profit of 33.3% compared to competitor's 15% net profit; which allowed us to purchase 4 competitors/month adding $8 million in revenue, and become the largest U.S. provider of home health care medical products with 320 national branches providing medical products to Medicare and Medicaid patients after they were discharged from hospital care. Abby Medical acquired Foster from Avon Cosmetics in 1987.Each acquisition averaged 92 days of inventory when 14 days was sufficient to meet the needs of the business. Approximately 35% of the inventory was in need of repair and with a minor investment in parts and labor which returned them to usable stock saving with an annualized purchase avoidance savings of $22 million. As acquisitions began to clus­ter around population centers, established 28 regional distribution/repair centers. Rapid growth required developing an inventory man­agement system to shift inventory to location with shortages, and purchase when needed resulting in inventory turns increased from 4 to 14.Foster’s rapid growth allowed the use of increasing purchasing volume to leverage advantageous, multiple-year purchasing discounts for durable medical equipment (DME), i.e. wheelchairs, beds, etc. Negotiations resulted in annualized purchasing savings of $38 million (42%).Created an Operations Audit Team to routinely audit each facility’s performance on cus­tomer service, inventory management, delivery vehicle maintenance, equipment cleaning and operating procedures. Regional Presidents received a quarterly bonus of which 25% was based on this operational audit score.Key Accomplishments:Net profit of 33.3%, which was twice our competitorsAnnualized purchasing savings of $38 million (42%)Annual repair savings (purchasing avoidance) of $22 millionIncreased inventory turns from 4 to 14

Eliminate the annual material waste by $2.4B by decentralizing 2-dimensional tool making off of GM's overloaded, slow and inefficient corporate mainframe IBM computer, to new Hewlett-Packard mini-computers located at each of the five trim factories. This decreased the material waste with more efficient tighter patterns for the Computer Numeric Control (CNC) cutting of automative trim parts, and constantly adjusted to current model mix of parts, which was impossible on the IBM mainframe.