Wanekisms_PrintProof-9.1.17

WANEKISMS

Teaching our philosophies one story at a time.

WE CAN’T THANK YOU ENOUGH.

We’d like to take a moment to say thank you to everyone who

took the time to share their stories with us, without which we
would not have been able to finish this book.

Our Wanekisms are not always the easiest to put into words,
but with the help of your examples, stories and personal

experiences, we feel we’ve captured the essence of each of
these expressions and how they speak to all of us.

EDITED BY: DESIGNED BY: OUR VISION

Bailey Waldera Alex Flynn We want to be the best furniture company.

Abby Peschges Kelly Hunger OUR MISSION
Improve Quality
© 2017 Ashley Furniture Industries, Inc. All Rights Reserved. Reduce Cost
Do More Business
No part of this publication may be reproduced, stored in a retrieval system or transmitted Be Profitable
in any form by any means ­— electronic, mechanical, photocopying or otherwise — Stay in Business
without the prior written permission of the publisher.

Culture is the heartbeat of a company.

We take great pride in our humble beginnings. They are the source that has fueled our
culture over time, and we want to empower employees by providing a comprehensive
understanding of the Ashley family and the Ashley experience as well as enable you to
accomplish excellence all while providing a safety-first work environment.

We wrote this book to explain the ‘why’ behind what we do: why we put our customer
first; why we believe in supporting our local communities; why we come to work every
day and give 150 percent of ourselves.

Over the years we’ve used numerous stories to teach, develop and grow our
employees, but for the purpose of this book, we chose 20 that we feel best define
our company and are the most impactful. Though we didn’t create all of these
philosophies first-hand, they’ve come to be referred to as Wanekisms because they
have proven true time and time again and are frequently used by us and other Ashley
leaders. Wanekisms are used to inspire and teach others around us and represent
who we are and how we do business. This book is filled with stories, definitions and
testimonies from you, our Ashley family, and a few others we’ve met along the way.

We hope you enjoy this book and reference it for guidance as we accomplish our
strategic goals together as one Ashley.

FOUNDER AND CHAIRMAN PRESIDENT AND CEO

67

CONTENTS 13 Growth Focused 91
19 97
Honesty and Integrity 25 Be at Peak State. 105
Don’t be a victim; find a way.
In times of war, prepare for peace. 31 We are a sunrise company not a sunset company. 113
In times of peace, prepare for war. 37 121
Customer Centric
Live within your harvest. 43 133
Water dripping on a stone eventually leaves a mark. 55 Every customer. Every time. 139
61 No exceptions. No excuses.
Passion, Drive and Discipline 149
73 Be an Ambassador. 155
Hire for attitude. Train for skill. 81 163
The harder we work, the luckier we get. Boundaryless

Continuous Improvement Yes, before no.
We are they.
If it doesn’t add value, eliminate it.
Don’t pay tuition twice. A Culture of Leadership
Fix the barn before you fix the house.
Give a man a fish, and you feed him for a day.
Dirty Fingernail Teach a man to fish, and you feed him for a lifetime.

You get what you inspect not what you expect. The speed of the leader, the speed of the team.
Obsessed with finding a better way. Choose to be extraordinary.

8 9

CORE VALUES

Honesty and Passion, Drive Continuous Dirty Growth
Integrity and Discipline Improvement Fingernail Focused

GROWTH VALUES

Customer Boundaryless A Culture of
Centric Leadership

10 11

HONESTY
AND INTEGRITY

Without hesitation, uses candor and is direct in communication
Is tough-minded in working in and meeting the demands of reality
Always tells the truth and follows through on commitments

12 CORE VALUE 13

IN TIMES OF WAR, PREPARE FOR PEACE. We always have to be prepared. When things are

IN TIMES OF PEACE, going well, we have to be ready for the worst, and when
PREPARE FOR WAR. they’re bad, we have to keep our heads up until they turn
good. On a sunny day, we can’t just sit back and relax.
14 We have to be ready for the rain. But we can’t just grab
our umbrella in case it rains, we have to have an umbrella
and other armor to protect us at all times. When the sun

is shining, we take the opportunity to invest and

improve our business, so that we can see the storm out if
and when it comes.

What we do today will never be enough tomorrow, so we
have to keep our eye on the prize and be willing to fight to

win our customer’s business.

15

War: instability; significant change in How did we WIN? Some of the
wars we have
the economy, lack of disposable income “When we were in war, it was 2008/2009. Consumers were fought in are:
literally debating: do I deal with my home or do I fix my car?
If we wait to change until we’re in war, it’s too late. We need to Prepare for the worst! The market reacted negatively, and we very quickly realigned Globalization
reduce costs and improve our quality, long before we are forced the business. Every leader made reductions in their operating
to, or we won’t survive. plan. We went through every single budget. We made deep
cuts, and we made them fast. We had to. The economy did
We all have to do our part to prepare for the inevitable! change, and we came out of it better than our competitors.

Peace: stability; minimal change in That was the real win for preparing for peace because

the economy, disposable income when order restored and when those instabilities went away,
we had lowered our operating cost, we
It’s easy to get caught up in the drama of war, but we have to lowered our prices to our customers and
situate ourselves for peace while we’re fighting. We have to come all of a sudden we were gobbling up
out of war stronger than we went into it. Then we will be our some pretty good market share.”
customers’ first choice when the dust settles.
Troy Muller, Arcadia, WI, Finance, 2002
We have to invest in hope instead of fear!
Be ready for the storm to pass!

We prepare for every scenario! Wars come in all sizes. 2008 Recession
Technology Disruption
The art of war teaches us to rely not on the likelihood of the enemy’s not Wars don’t have to be lengthy, industry-
coming, but on our own readiness to receive him; not on the chance of his not changing events. Every day we are at war with
attacking, but rather on the fact that we have made our position unassailable. our competition. We always have to be on top
of our game, staying one step ahead of the
Sun Tzu, The Art of War competition. The minute we take a break and
sit one out, is the minute we fall behind.
16
IN TIMES OF WAR, PREPARE FOR PEACE. 17

IN TIMES OF PEACE, PREPARE FOR WAR.

Sometimes to win the war, Taking the fight out of it
you have to take a few hits.
We started asking them, ‘what would you like us to do?’ and ‘how would
When we started importing through Canada, our you like it to be?’ Then we would simply say, ‘Okay, we can do that.’ There was
Imports/Exports team had to learn a whole new nothing left to argue. We ended up winning and finding a way to conduct business
border clearance process and build new relationships. the way we needed to.
They had to overcome a lot of hurdles.
Today, our relationship with this customs office
We couldn’t do anything right
is one of the strongest we have!
We had a list of what we needed to accomplish in order for business to operate as normal. It was
just a matter of getting the custom officials to see it our way and let us have what we wanted. “Some people want to battle As the 18th largest
for the sake of battle, and importer in the U.S.,
Unfortunately, it seemed like a constant battle that we weren’t going to win. Every time they told when you take the fight out of we will import
us ‘no,’ we offered a solution, which was again met with ‘no.’ It seemed like we wouldn’t be it, there’s nothing more to it.” around 92,000
able to please them, but we had no other option. This was the only office we could work with to containers in 2017.
complete the border clearance process from Canada into the United States. Christi Wozney, Arcadia, WI, International Logistics, 1990

Time for a change Did You Know

We knew we had to change tactics, so the team Customs clearance is defined as the act of passing goods
drove up to meet with the custom officials and were through customs, so that they can enter or leave the country.

determined to come back with a solution. This includes preparing, submitting and retaining required
documentation, coordinating customs examinations,
After looking at our list of business requirements, assessments, payment of duty and taking delivery of cargo
we decided what we could give up and what we had from customs after clearance.
to fight for. Our team let the custom officials beat
them up and block a few of our requests. Maybe this IN TIMES OF WAR, PREPARE FOR PEACE. 19
gave them a sense of control or the feeling power,
but they got past only telling us no, which gave us IN TIMES OF PEACE, PREPARE FOR WAR.
enough traction to start getting what we wanted.

18

LIVE WITHIN A farmer’s income is based off the amount of crops they yield —
YOUR HARVEST. the more crops harvested, the higher a farmer’s income is that

20 year. In order to be able to stay in business, a farmer

has to make enough money or save enough money to buy seeds
to plant the next year. Our harvest is our sales, and we have to
set aside enough money to continue operations as we face new
trends and new economic demands. Our income isn't consistent
from year-to-year, or even month-to-month. The trick is to

live within our means as if it is going to be a bad

harvest. Not every year has perfect weather, and we can’t
spend our seed money. If we do spend it, we won’t be around
to see next year’s harvest!

21

Be Proactive Not Reactive! We have to budget more
than money to be successful:
It’s easy to spend more money than we have, especially in today’s world of credit
cards. We manage budgets monthly and annually to keep our expenses on track in
comparison to our revenues. Budgeting is the best way to prevent spending more
than we’re able to and plan for long-term investments, growth and success.

THE MOST IMPORTANT THING; THINGS TO BUDGET
SPEND LESS THAN YOU EARN!

SMHYPUOOECWNUHD GOAL: Time People
HOW MUCH
YOU SAVE MAKE I T There are only 24 hours in a
AS BIG AS
$ YOU CAN! day, and if we don’t budget We want to put our people in
our time wisely, we won’t be the best positions to help them
HOW MUCH YOU MAKE as productive as we could be successful. Successful people Goals &
be. Streamlining procedures Strategy
really helps! make a successful business.

Resources Goals have to be reasonable and

manageable. Our goals also need

Our budget process is the road map for where we’re heading, We have to use our resources as to tie directly to the strategy to
and the basis of the scoreboard once we arrive there. efficiently as possible! That means ensure we are focusing our energy

David Keck, Arcadia, WI, Finance, 2014 having little material scrap leftover into the greater plan!
or reusing machines in new ways!

22 LIVE WITHIN YOUR HARVEST. 23

Forecasting product is like Wisconsin weather, it can change in a minute and 7 Ways to Live
you always have to be prepared and ready to make those changes. ‘Living Within Your Means
within our harvest’ is achieving high forecast accuracy on the right product
using the budgeted dollars in the most profitable way. The end result, being
able to satisfy customer demand by having the right product available.

Barb Van Sickle, Arcadia, WI, Supply Chain Planning, 2003

Keeping Watch Live Within Your Means 1 Set a budget 2 Stick to it 3 Negotiate

“Living within our harvest to me means never “This applies in business and in our own personal lives; Always get
over-expending myself in the department. We’re at home, we have to base our lifestyle off of a 40-hour the best deal!
a lean company — always finding ways that we week. Anything over that is disposable income. Same
can be able to have the same great structure but goes for running a business.”
also making sure that we’re not going over budget.
Finding ways that we can cut costs Brady Rumpel, Arcadia, WI
and we can bring more profit Human Resources, 2008
to the company, so down the
road, we’ll be ready.” 4 Identify wants 5 Save 6 Identify/Set limits

Bob Trujillo, Colton, CA from needs Being a lean Under
Retail, 2011 company we promise, and
7 Pay with cash look for even over deliver.
the smallest
Don’t spend of savings.
what you
Did you know? don’t have.

Many of our Wanekisms and stories reference LIVE WITHIN YOUR HARVEST. 25
agriculture and farming. This stems from the
fact that Ron Wanek grew up on a farm in a rural
community in Minnesota. When there was a lesson
to be taught, the best way to relate was to speak
with common terms and familiar scenarios.

24

WATER DRIPPING ON A STONE It can be hard to see small progress day-to-day, which
can be discouraging. But, over time all the little things
EVENTUALLY LEAVES
A MARK. and steps we do add up — just like water over time

26 will wear away stone. The Grand Canyon didn’t get
its size overnight, and neither will we! That’s why it’s

important to celebrate the large and small wins,

so we can keep our eyes on the bigger picture and our

overall success. Education is repetition, and

as long as we’re learning and continue to work at it,
we’re doing something right!

27

Learning is a gradual thing. What marks does your stone have?

Rick Coppola, Arcadia, WI, Sales, 2007 “Red Glowcheski always told me,
‘You can either leave it happen, or make it happen!’”
Continually Excercise Do Your Due Diligence
Andy Halama, Arcadia, WI, Casegoods, 2000
“Just because you do it once doesn’t mean you “You have to say something eight
understand it. It’s got to be one of those continual times before somebody gets it. In “If you can’t hide it, decorate it.”
things that you’re always driving to do. You’ve got communication there might be things
to continually exercise that learning and knowledge- lost, so if you just expect it to be done, Tim Robinson, Arcadia, WI, Retail, 2012
gaining aptitude. The water dripping really that doesn’t mean it’s going to happen
resonates because it’s taking the that way. So, you have to follow up, and
fear out of failing the first time and you have to do your due diligence and inspect what
reinforcing it with understanding that you expect to get the proper results. The results that
I need to do it repetitively, so that I you want.”
can further improve.”
Ben Golden, Arcadia, WI, Interior Design, 1996
Jeff Cooper, Arcadia, WI
Continuous Quality Improvement, 1995 How on earth does water actually wear away stone?

Which type of stone are you? It’s called erosion! Each time water travels over the ground, it takes small pieces of the stone —
or sand, dirt, whatever! — and carries it with it. Depending on the amount of water and pressure
Granite: behind it, a lot of pieces or one little piece can be washed away. A few pieces don’t make or
break a stone, but when a few pieces are taken away each day, it can really add up!
doesn’t want to move, makes sure it’s the right direction first
Example A: Example B:
Limestone:
Grand Canyon in Arizona Cape Hatteras Lighthouse in North Carolina
willing to move, takes a bit of convincing
Time: 5 million years Time: 119 years
Sand: What: Colorado River What: Atlantic Ocean
Damage: 1 mile deep and up to 18 miles Damage: Went from 1,500 feet from the shoreline to
easy to move, willing to go with the flow
wide in some places! 120 feet, causing an emergency relocation!

28 WWAATTEERRDDRRIPIPPPININGGOONNAASSTTOONNEEEEVVEENNTTUUAALLLLYYLLEEAAVVEESSAAMMAARRKK. . 29

PASSION, DRIVE
AND DISCIPLINE

Enjoys working hard and pursues work with energy, drive and
willpower to finish
Is disciplined in developing consistency into work processes
Is focused and relentless in achieving goals

30 CORE VALUE 31

HIRE FOR ATTITUDE. Attitude is everything. Positive attitudes are
TRAIN FOR SKILL.
contagious, and they keep us motivated while
HIRED enlightening the environment around us. When it comes
to adding new members to our Ashley family and
32 developing our current ones, we look first and foremost

at attitude and behavior. Attitude is a choice

we all have to make for ourselves. All jobs require
special skills but those can be learned faster than an

attitude can change! We can only develop and master

skills through experiences when the attitude is there.

33

A good attitude goes a long way! Take ownership of your career development
through education like these employees!
“A positive attitude is what makes your day. You’ve got 8 hours or 10 hours in one place. It
makes the day go a whole lot faster, and that’s going to make people interested in coming On-the-job training is the fastest way to learn the skills you need now, but when we’re
in the next day. And at Ashley, if you’ve got the knowledge and you’ve got the want-to, looking for skills we’ll need in the future, we look to the classroom. We proudly support
and you’re interested, you can move up in this company because Ashley’s got so many our employees’ education and offer a tuition reimbursement program.
opportunities to offer you. If we keep growing, hiring, and we keep training, the company
Passion and Drive Future Advancements
will be successful.” Ronnie Rutherford, Ripley, MS, Quality, 1991
“I started with Ashley Distribution Services in 2001. I “Through my Associate’s, my
“Well, it’s attitude, attitude, “It’s really about the people with this company. We come worked with great people who were driven and drove Bachelor’s and my Master’s
attitude, and then a little more from such diverse backgrounds, and we bring different me to want to do my best in our very fast-paced degree, Ashley’s program has
attitude and then skill! And skill sets to the table. And, with ‘attitude,’ it’s one of environment. I realized I wanted more and felt HR been there for me, helping
we’ve been really successful those things where you need to come in with a positive, would be a great career choice for me. With the help me with the financial aid
with that over the last few years. entrepreneurial attitude. It’s harder to train of my supervisor, Betty Andre, I signed up for tuition part of it. And it’s helped me
And it’s interesting how people just for the attitude as it is for your skills.” reimbursement to complete my Master’s Degree tremendously to understand
blend in with Ashley, with the proper attitude, in Human Resources. It was a lot of work but so the business side. I’ve
and their beliefs mirroring our beliefs, and the Nora Roberson, Ybor City, FL, rewarding to be able to relate my work experiences always known the manual
promotions that we’ve had in short periods of International Merchandising, 2015 with the knowledge I was gaining through my classes. side — how to cut frames, how
time. It’s been very rewarding to mentor a lot of After graduating I went onto be an ADS Application
these people coming aboard, and how they’re Specialist, HR Generalist and now an HR Manager. I to upholster a piece of furniture,
reacting and growing with our company.” have a desire and drive to keep improving my skillset how to pack a piece of furniture, how to load a piece
and knowledge base, especially in an area I am of furniture on a truck, how to run a sewing machine.
Gregory Roy, Atlanta, GA, Retail, 2011 very passionate about — Human I know how to do all of that, and that’s good, but I
Resources. I am grateful wanted to learn about the business and the marketing
Cross training is key: “I have a really to work with teams that and the financial side, so that I would be considered
hold that same drive and for future advancements in the company.”
strong cross-training program, that allows passion to continuously
me to teach all of my employees different grow for themselves and David Fowler, Advance, NC, Upholstery, 2002
functions of what they do. So, if anyone of the company.”
them is missing, I know, I can always go to A bad attitude is like a flat tire.
another one of the employees who is here and they will You can’t go anywhere until you change it. Cari Sallander, Arcadia, WI,
pick up production/labor for the people who are not here.” Human Resources, 2014

Heriberto Vallejo, Colton, CA, Distribution Center, 2012

34 WATER DRIPPING ON A SHTIROENFEOERVEATNTTIUTUALDLEY. TLREAVINESFOARMSAKRILKL. . 35

Great attitude = Greater opportunity Here are some other ways you
can take charge of your future!
“There are no limits to where a person can go in this company. All it takes is a
good attitude, willingness to learn new things and accepting new challenges.” Listen Now Online Courses

Cheryl Shaffer, Whitehall, WI, Idea Network, 2011 Have a long commute to work The best classes are free!
or just want to learn more? That’s why we’ve collected
“In 1997 I interviewed with Margaret Pronschinske and Ron Klimek for a position in what was Listen Now compiles TED online courses that directly
then called Product Planning. The interview went fine, but the job description was out of my Talks, podcasts and speeches relate to our business and
league with numbers being the core of the job. I chalked it up to a good interview experience from external sources that our many functions. No
and went back to my two part-time jobs, which included working at a local video store. Ron relate to what we’re doing! book fees, no tuition and all
Klimek came in to the store that night and offered me the job. I clearly remember telling him, relevant to you!
‘thank you for the offer, but the position was not for me.’ And he said, ‘you have a great
attitude, great energy. You are willing to learn, and we’d be happy to have you.’ So began my First Level Leader Education Book Talk

employment with Ashley Furniture!” Lori Connelly, Arcadia, WI, Customer Service, 1997 We built a program specifically More of a bookworm? Then
for our first-level leaders to try out a Book Talk! All books
“I started out in customer service, went on to the cushion department, and now I’m a Support build and enhance the skills of carry valuable stories and
Superintendent. That ability was given to me by my management team. They saw the potential anyone aspiring to become a lessons that relate to your
in me, and helped me grow to where I am today. It’s great that at Ashley Furniture you can start formal Ashley Leader! We focus work at Ashley and your
in one area and learn, then take that knowledge and experience into another area. You’re always on servant leadership, building day-to-day commitment to
trust and developing talent life.
continually growing here!” Edna Robinson, Arcadia, WI, Program Management, 2009 within our teams.
www.ashleynow.com
Hire for smiles. The soul of the Apple Store is in its people. They are hired, Continuous Improvement Education
To find out more about these learning opportunities,
trained, motivated, and taught to create magical and memorable moments Stop wasting your time, and
for their customers. The Apple Store values a magnetic personality as much start getting your Black Belt visit AshleyNOW | Learning Center
if not more so, than technical proficiency. The Apple Store cares less about in Lean Six Sigma! Or, if you’d
what you know than it cares about how much you love people. rather just learn the basic lean
principles, you can do that too
Carmine Gallo, The Apple Experience, 2012 Courtesy of McGraw-Hill through Ashley’s Continuous
Improvement Education!
36
WATER DRIPPING ON A SHTIROENFEOERVEATNTTIUTUALDLEY. TLREAVINESFOARMSAKRILKL. . 37

THE HARDER WE WORK, Working hard is crucial to our success. It seems
THE LUCKIER WE GET.
simple enough: put more work in, get more results
38 out. But much like Vince Lombardi said, ‘Practice
doesn’t make perfect. Perfect practice makes
perfect.’ Working hard isn’t about putting more

work in; it’s about working in the best, most
efficient way to make the best product, which

leads to opportunities for us to succeed — aka luck.

Luck comes when we have the momentum of hard

work behind us.

39

Ashley’s Top 5 Productivity Tips “We play hard, and we demand a lot. But, then in return, we give a
lot. Ashley has the hours, the work and the business, and there’s
Movie montages make hard work look easy, but we know that it takes a lot of always going to be somewhere to go. If you work hard and you
hours of dedication to turn hard work into luck. improve yourself, then you’re going to be recognized and given the
opportunity to grow with the company.”
1 Do your most important work first.
Bob Llewellyn, Verona, MS, Human Resources, 1998
Find the most important task, and start there!
“When I started in Advance, I was “Ashley definitely believes in hard work, but at
2 Use the power of processes. working on the line for a month. The the end of the day of hard work, you feel your
supervisor that came from Arcadia accomplishments. You know that you’ve really
Standardizing leads to streamlining, which leads saw my potential and said ‘you succeeded in doing something great.”
to improvements, which leads to efficiency. work really fast. You like to help out
everyone. Don’t you want to be a parts Joe Murphy, Leesport, PA,
3 Chop up big problems into chunks. carrier?’ She gave me the opportunity Upholstery, 1995
to work as a parts carrier. After a year I was
You eat an elephant one bite at a time, and it promoted to a parts carrier trainer. Eventually an opportunity
takes multiple pieces to form a puzzle. Break your arose, and they gave me a chance to be a supervisor. For me,
project into smaller, more manageable tasks. it’s special to see someone who helped you out. They see
your hard work. When one person believes in you, it gives you
4 Write down your ‘to do’ list. strength. If they believe in me, why can’t I do it?”

Don’t keep it in your head! Plus, when it’s written Damaris Ruiz de Jesus, Advance, NC, Casegoods, 2010
on paper, you get the joy of crossing things off.
The master in the art of living makes little distinction between his
5 Don’t neglect the small tasks. work and his play, his labor and his leisure, his mind and his body,
his education and his recreation, his love and his religion. He hardly
There will always be another fire to put out, but knows which is which. He simply pursues his vision of excellence at
we can’t forget the small day-to-day tasks that whatever he does, leaving others to decide whether he is working
are essential to our jobs. or playing. To him he is always doing both.
James Michener
40
THE HARDER WE WORK, THE LUCKIER WE GET. 41

CONTINUOUS
IMPROVEMENT

Fights to take costs and waste out of the system

Seeks to understand why something works the way it does, and
through study and improvement determines how to better all
processes and systems

Strives for more in all areas of work by developing measurements,
setting goals and then working on ways to exceed goals through
problem solving methods that look beyond the obvious

42 CORE VALUE 43

IF IT DOESN’T ADD Part of our mission statement is to reduce cost
VALUE, ELIMINATE IT.
wherever we can — and that takes many different
44 forms. It’s not just about saving a few dollars here and

there but eliminating all waste — material,

time, transportation, etc. Each of us are the experts at

what we do, so we are empowered to recognize and
eliminate waste at both the largest and smallest of

levels. We’ve even invested in dedicated individuals that
look into all ideas on how we can improve our processes

and keep our workplace lean!
If you notice waste, do something
about it. Be a waste warrior!

45

We are lean! All the work we do can be separated into
three categories:
Being a lean company means we identify, eliminate and prevent waste in
our processes and products! 1 value-added In other words:
Streamline, streamline, streamline. The waste that we take out of
our processes and products reduces our costs. This allows us to pass Any activity that increases the market Any process that a customer
our savings on to our customers and keep us competitive in the global form or function of the product or would pay for (ex. adding a
marketplace. service. support piece to the back of a
dresser)
Here is an example of how our continuous improvements did just that!
2 non-value-added/waste In other words:

Any activity that does not add market Any process that a customer
form or function or is not necessary. wouldn’t pay for. These activities
These activities should be eliminated, fall into one of the seven types
simplified, reduced or integrated. of wastes (ex. making more of
a specific product than is being
purchased)

Either your business is 3 non-value-added/required In other words:
improving or your business
Any activity that does not add market Any process that a customer
is going out of business. form or function but is necessary to stay wouldn’t pay for but is essential
in business. These activities should be (ex. using a box to package the
Dr. W. Edwards Deming streamlined or simplified. furniture)

Sold in 1994 for $219 Sold in 2017 for $169 When we can identify the work we’re doing, What work are
we can identify where we can eliminate waste! you doing?

46 IF IT DOESN’T ADD VALUE, ELIMINATE IT. 47

How can we measure The Staple Story
our progress?
Waste isn’t one big piece of the puzzle that can magically What’s the big deal?
1 Efficiency be removed when we realize it doesn’t add value. More than A staple is small, so it
likely, waste comes in small increments of excess materials, can’t do that much
Are you getting more work done in the same amount of time, time and movement that we do along the way. harm, right? Wrong!

allowing for a larger throughput? Let’s take a look at an example of using too many staples.
Walking through the factory, our Founder, Ron Wanek heard
2 Quality an excessive amount of stapling, so he walked over to check
out what was going on. He found an operator using 11 staples
Are you producing a better product than before, creating on a frame when there should have only been 4.
better customer satisfaction?
What did those seven extra staples cost us?
3 Simplicity
Quality. Our product engineers work hard to determine the best way
Is the process more streamlined than before, allowing you
to build our furniture for cost savings and structural quality. In this case,
to save time without lowering the quality of the work? they determined that four staples was optimal, and any more would
weaken the structure of the product and any less wouldn’t meet our
4 Consistency quality standards.

Does the process have less room for error, Cost. Using 11 staples is a 300% increase of what is needed. When
saving time and/or resources?
we buy $5.5 million of staples each year, a 300% increase is pretty
Ashley doesn’t have a right to exist in the market. significant! Even adding just one extra staple adds 20% more cost,
We have to earn our business by keeping costs low raising our cost to $6.6 million a year.
and quality high for our customers!
IF IT DOESN’T ADD VALUE, ELIMINATE IT. 49
48

We’re determined to elminate waste! The Value of
Employee Ideas
Defects:
details your info idea form seumccpeoswsetrhinroguegmhpthloeyireiensnotovaatcivheieidveeas No one knows your job better than you do,
inspection and repair of material in inventory NAME which makes you the best person to improve it!
PSLUEAPSEERPVRIISNOT R’S NAME SHIFT (SNEUOMTPPVEALRLOVIDYISUEONELRNE’SSUSSMSIGIBGENNREADTUBYRYEOUR SUPERVISOR) We developed the IDEA Network program to
Overproduction: DEPARTMENT reward employees for being agents of change
ILLUSTRATION and for cutting cost, eliminating waste and
making more, making it earlier, making it faster PART # passing savings on to our customers. We depend
MWMEOONRUDKEOCLP/ESTNTIOTYNELRE/#PIV # on you to make us more efficient!
Waiting:
current process BRIEF DESCRIPTION OF PRESENT METHOD We’ve saved over $2.3 million every year in
idle time created
Fun Fact!RECOMMENDED CHANGE INCLUDING IMPLEMENTATION STEPSyour idea operational costs because you said something!
Non-Utilized Talent: This allowed us to pass that savings on to our
Emmiplliloonyesetsyeepsasarvisendt6he46IF ADOPTED, HOW WILL IT BENEFIT ASHLEY FURNITURE? customers, providing them better prices.
not using people’s mental, creative and physical abilities pbatysrtaidn5esnptoifrytiantgion waste!(SNarIOIGet hTjaeaNncVvytAAeiotLiTrnmeIDU,aead.RUwtINEahareLdlsE,goSouurSidnceSdolIeimnGresmNstaeEonnDndd)atthhtieaotnbaawlcliIktDhoErfeAtfhseerbefenoccromemtaoenmtdhyeI IueDnxEdcAelurssshitvaaenlldpbrteohpefienmrat.yl aIonafdgTrhbeeienAdthsinahgtleaaynnCydodtmheacpitsaminoiyDnesemA.mTapdEleoySbeyUr TsBhhMeallAIhTsahTvleeEytDhCeomrigphatntoiesw,itrhedgraarwdinogr cehliagnibgileityt,haedporpotgioranm,
benefits
Transportation:
IF IT DOESN’T ADD VALUE, ELIMINATE IT. 51
transporting parts and materials

Inventory:

any supply in excess of a one-piece flow through your process

Motion:

movement of people or machines that doesn’t add value to the
product/service

Extra Processing:

effort that adds no value to the product/service from the
customers’ viewpoint

50

Everyone should feel Name: Department:
empowered to make a change!
Steven Lefler Maintenance

Started at Ashley: Facility:
2009 Ripley, MS

What is a Change Master? We’ve received What were his ideas? In his everyday role, Steven helps keep the facility
36,833 ideas in the running smoothly. Steven is not just an employee
Every year we recognize employees who have past 5 years from our who participates in the IDEA Network helping to save
truly made an impact through their ideas. We dedicated employees! How many the company money. He also plays a large role in
call these individuals Change Masters. They ideas have you submitted? helping other employees’ ideas come to life with his
represent the top amounts saved at their facility. fabrication abilities. Throughout the year, his ideas
Check out these two Change Masters and their
cost-saving ideas! have helped save the company a total of $61,200,

which is in turn savings in our customer’s pocket!

Their ideas are 1 Previously, furniture was getting stuck in the shrink wrap oven. Steven’s idea was to
innovative, inspirational extend the inner walls of the oven. This stopped furniture from getting stuck in the oven,
and incredibly impactful! Change which eliminated repairs, lowered packing cost, eliminated replacement of destroyed
Masters do more than just submit pieces and decreased downtime for production, packing and shipping. This idea had an
ideas — they encourage those around overall savings of $55,328!

them to do the same! There’s room for improvement 2 Prior to Steven’s idea, we bolted the uprights to the wedge table before building the
52 in all of our facilities. upholstery frames, which had to be switched whenever we changed sides. The bolts
moved a lot, so the wedge frame was not square. Steven’s idea was to mount two air
By working together to cylinders, hooked to two flat metal plates to act as clamps under the wedge tables. Then
produce a quality product for run the airline to a switch on the side of the table, this way the operators wouldn’t bump
our customers, we are able into it. This change saved time during the assembly process. It benefited the employees
to remain competitive in the and the company and allowed us to pass our savings on to our customers! The total
global marketplace. savings was $1,803!

3 Steven submitted an idea to run the Return Blower Intake hose to the outside of the
Blow Fill Cell. By doing this, the motors no longer clogged with fiber, which cut down on
maintenance time. This idea had an overall savings of $4,069!

IF IT DOESN’T ADD VALUE, ELIMINATE IT. 53

Name: Department: Putting Ashley a Ahead!

Lisa Berg Upholstery Name: Location:

Started at Ashley: Facility: Wanda Cartrette Arcadia, WI

2006 Whitehall, WI Start Date: Current Role:

Lisa is a great example of a Waste Warrior! April 1991 Wisconsin Upholstery Lean Six
Sigma Manager / Corporate Idea
She thrives on challenging herself to find ways Network Manager

to continuously improve her processes and Wanda first demonstrated her passion for manufacturing and process WomSTeEnPinAhMeaanduAfawctaurrding
improvement when she started in 1991 as a Casegoods assembly
is a true leader in the business. In a year, she line worker. For the past 13 years, she has developed, promoted and
championed the Idea Network. Since Wanda has taken over the Idea
had a total savings of $152,772! What a huge
Network, Ashley has seen over $30 million in savings! This was possible
impact for reducing our costs.
because of Wanda and her team’s commitment to following through
What were her ideas? with evaluating and implementing employee ideas. Her continuous
improvement mindset and commitment to the program have allowed
1 Lisa submitted an idea to use the back sacks and arm fiber, instead of using packing Ashley to continue to eliminate waste and pass our savings on to our
foam, in between the U982 leather kit parts. This eliminated the cost and time spent customers by providing them with the best value.
on the foam sheets and is still able to protect the color and quality of the leather
pieces. This idea had a total savings of $147,550! Because of her dedication and passion, Wanda received the
Manufacturing Institute’s Women in Manufacturing STEP (science,
2 Previously, the cut-and-sew kits were shipped from Vietnam with the arm material technology, engineering and production) Ahead Award in 2017.
folded in half, leaving a deep crease and wrinkles, that required steaming. Lisa’s This prestigious award honors women who have demonstrated
idea of laying them flat in the bag instead of folding them helped minimalize of the excellence and leadership in their careers and represent all levels
wrinkles and creases. This idea decreased the amount of time and rework of the manufacturing industry. It is part of the larger STEP Ahead
needed when the kits arrived and ultimately helped improve the final initiative, launched to examine and promote the role of women in the
product for our customers. Lisa’s idea saved $5,222! manufacturing industry through recognition, research, and leadership
for attracting, advancing, and retaining strong female talent. Only 130
54 women are recognized a year – way to go Wanda!

IF IT DOESN’T ADD VALUE, ELIMINATE IT. 55

DON’T PAY When we don’t give our full attention or try our
TUITION TWICE. hardest, we often have to repeat the same task,
wasting time and resources. Essentially, we end up
56 paying twice as much for the same end product.
We expect mistakes. Everyone missteps, which is why
we encourage new mistakes, fast fails and talking
about our mistakes, so we can all learn from them.
The faster you fail, the faster you can try again in a
new direction and accomplish what you set out to do.

All mistakes have a take away. Own it. Fix it.
Learn from what went wrong. Prevent others

from making the same mistake.

57

The Next Big Thing “We’re not perfect. Everyone makes mistakes. It’s
important for us to own up to mistakes — not even
“I’ve worked for a few leaders within Ashley. mistakes but opportunities to make a better decision.
By doing that, it shows the employees that we respect
dPehrtfhaoinvafeetodutobhnnaoadsctthekKInsknhdnooawoowrwleneldledoe, dgtdgeggaheieyan. ovueu, s Each experience has been different, but they them and, more importantly, that we’re people too.”
all have had one thing in common: they’ve all
Mike Gappa, Leesport, PA, Human Resources, 1996
said, ‘it’s okay to make mistakes, everyone
does, but be honest about your mistake.’ It I HAVE THIS

gives me as an employee the ability to go GREAT IDEA!
out and make choices to keep the company
Has it been done before?
moving forward, but to know that if I make

a mistake along the way, it’s okay. It is the
actions after the mistake that are critical.

By being honest about those mistakes, we can

all move forward and be better because of it.

Mistakes mean you tried

and you never know, that

‘mistake’ might be the

Be Cognizant next big thing!”
Heidi Hughes, Arcadia, WI

“There’s definitely areas where Human Resources, 2005

we need to take risks and go after

things, but always be cognizant of where we’ve

paid tuition on this. There’s always an element of how we buy

equipment, how we set up a factory, how we set up retail, how we structure I’m not sure. No. Yes!

technology. All of those things we’ve done as a company, so it’s making

sure you’re not going out on a tangent without involving people in the

organization that can help. It’s important to understand where you have
profound knowledge within the organization. It’s making sure we’re
not reinventing the wheel on certain things. Don’t pay tuition twice also
Go ask Ask someone
applies to very much learning your competition. Seeing what competitors someone! Ask someone why not. how they did it!

have done and how they’ve paid the tuition.”
Chris Wantlin, Ybor City, FL, Information Technology, 1993

5181 DON’T PAY TUITION TWICE. 59

What was your tuition bill? Not every idea is a successful one!

“I moved to Asia when I was 23, and I didn’t really know much of anything at the time. I was Product Line: Millennium® 2000
put in charge of some projects that I probably shouldn’t have been in charge of, and I made
a mistake. Without getting too much into details, I cost us $60,000 and probably a lot In 1986, we made the largest product line investment in furniture manufacturing to make a new collection known as
more in labor and hassle and everything else, but you know Ron and Todd let me learn Millennium®. This line was developed with a unique polyester gloss finishing technique that produced a very high-
from that mistake and honestly many others. That’s allowed me to grow and see more end finished product. It had all the bells and whistles, made a statement in the industry (named the most innovative
things and you feel that you have trust and that’s just a fantastic thing. You can invest in product of the 1980s), was very advanced for its time and was a huge success. We wanted to take it a step further
and launched the Millennium 2000 line. This second line was very sophisticated and expensive to produce and had
people in so many ways, but trusting them and letting them learn from mistakes and a lot of mechanical and moving parts. When the product line launched, it wasn’t the hit we anticipated. Customers
didn’t understand it, didn’t know how to use it, and dealers couldn’t sell it. Why? We were selling a product to our
make mistakes is really the bottom line.” Paul Dotta, Shanghai, China, China Retail,1997 customers that they didn’t want or need, and it wasn’t in their price point.

The average cost of a bachelor’s degree is $54,400. Lesson learned:
Sure wouldn’t want to pay that twice!
You can’t let your ego and personal projects decide decide what
6101 you should make or sell to your customers. You have to KNOW your
customers and stay true to who you are as a company.

It’s okay to make little mistakes.
Big mistakes can be prevented. If
we have an issue that could make a
big mistake, we should be bringing
others in and talking about it
together. Ron Wanek, Founder & Chairman

DON’T PAY TUITION TWICE. 61

FIX THE BARN A barn protects a farmer’s money makers — crops, animals,
equipment, etc. By spending money on the upkeep of a barn
BEFORE YOU FIX THE HOUSE.
and what it holds, the farmer is investing in what will
62
in turn make money, keeping the farm in business. A house
is the farmer’s comfort. It can look nice, but it doesn’t
generate the profit that the barn does. We believe in
reinvesting in our money makers — facilities, equipment and
employees. We want to be the best furniture company, and
our mission is to stay in business. To do that, we always put

our money where it counts!

63

You have to spend money Our product design and engineering is
to make money... changing, and our machines have to keep
up with what we want them to do!
…but that only works when you spend
it on the right things. “It’s the automation, and specifically robotics, that is transforming the manufacturing
environment. Automation creates consistency, improves quality, and reduces the necessary
When we grow, “The reinvestment back into our facilities allows Ashley to continue physical requirements needed to perform a job. Investing in new technology is a must to
our facilities have its growth by improving workflow and efficiencies throughout stay ahead of your competition and be competitive in a global market.”
to grow with us! the plants. As we continue to grow, the need for larger and more
updated facilities is crucial for supplying the demand. Dave Peterson, Arcadia, WI, Manufacturing Engineering, 1987
By increasing the capacity of our facilities, we allow
finished product to be delivered in a timely and Our processes and products can only
efficient manner to customers all over the world.” be as good as the people making them!

Bill Webb, Advance, NC, Manufacturing Engineering, 2012 “In my world of retail, I knew that it was more important to invest in the people – bringing
them up, teaching them the processes and getting them to perform with the Guest at that
high level – versus being concerned with, maybe, some paperwork or some processes that
you could throw some money at, and that would take care of that problem. But ultimately,
the return on investment isn’t going to be as great as if you’re fixing the people that are
working with the Guests on a daily basis.”

Sally Halverson, Arcadia, WI, Customer Service, 1996

Approximately The amount reinvested into the
$1 billion business over the past five years!

64 FIX THE BARN BEFORE YOU FIX THE HOUSE. 65

Reinvestment The Law of the Harvest
is a long-term strategy
a.k.a. “The Old Cal Story”
You can’t stay in business without
looking toward the future. Ron’s valuable lessons in timing on the farm have translated time and time again into
business. We have continually worked to make the investments at the right time,
Flexibility Investing in a Team but it’s a fine line between repairing and replacing structures and equipment!

“You can be a lot more “If we don’t invest in our As a small boy on rainy days, Ron’s father would take him for a ride on the same route,
flexible for investments with people and inspire our people, which took them past Old Cal’s farm. Since he was small, Ron would stand next to his
a privately-owned company then we can be one of those father on the seat of the pickup. When they passed Old Cal’s farm, Ron’s father would
because you don’t need a companies that are no longer comment on how well-kept the farm was. The buildings were painted and well maintained.
board of directors and worry about the stock here. And, the fact that we’re constantly Machinery was well taken care of and organized. The crops were put in and tended to at
market. You know that 3-4 years from now, growing and investing in the team and the right time, and the grounds were always meticulously manicured.
if I make that investment now, it’s going to taking care of the barn before the house
be a very good thing for this company. As is very, very significant and why we’re A few years later on one trip, they passed the farm and noticed that things had changed.
where a public company, they’ll say, ‘3 or 4 growing the way we are when others are The farm was not kept up. The buildings were in disrepair. The barns were not cleaned,
years from now, that’s a good deal, but we shutting stores down.” and the yards were messy. The cows had to be sold, or he would lose them.
can’t afford it right now because our stock
will go down, so we better hold off on that.’” Greg King, Atlanta, GA, Retail, 2010 Ron’s father explained that Cal’s father had died,
and things weren’t getting done at the right time.
Duke Schultz, Arcadia, WI, Transportation, 2012 Cal’s son wasn’t a lazy man. He just did the work
at the wrong time, so the harvest was not as
676 good as it should have been, nor was the milk
production as good as it should have been.

Timing is everything.

FIX THE BARN BEFORE YOU FIX THE HOUSE. 67

Here’s an example Sometimes it just makes sense to do it ourselves.
of how we’ve fixed our barn:
Ultimately, our decision came down to the numbers. We could invest $3 million in
Our casegoods teams manufacture just over 200 SKUs that include Did you know machines that would pay for themselves in one year, which doesn’t even include the amount
one or more drawers. we produce of ongoing savings we would have! Our manufacturing engineers designed a fabrication
workflow that could take a raw board and deliver all needed drawer parts by the end.
Previously, we had a vendor that supplied us with the drawers for 185,000 drawers
our units. When it came time for that vendor to raise their rates Concept to Completion
to cover costs, we had a tough decision to make. domestically in
just one week? We knew what we wanted to do, what it would look like, how many
Do we pay more or make the drawers ourselves? parts we would need to produce and how much space we had on the

production floor for it... we just had to figure out the ‘how.’

It took a year and a half and four suppliers to build the separate
machines that were married into one functional line.

The Upside: After numerous attempts of Look at what we gained!
working with the vendor to keep
We could control cost down, we decided to bring the Cost Savings CoQnusiasltiteynt StPrreoacmeslisned ReIdnuvceendtOonr-Hyand
quality and cost. drawer operation in-house, so that
we could continue to offer our
The Downside: customers competitive prices.

Our facility space was FIX THE BARN BEFORE YOU FIX THE HOUSE. 69
limited, and taking on the
added workload would
require more
resources.

678

When we invest in one area… ...we see the affects in all areas!

What we did The results

Take the tool grinding department for example. We invested in Out with the old, and in with the new!
machines and the employees, and we came out ahead in more than
just the physical capacity. • New machines meant we needed an Tool Grinding - Before
updated space!
Since 2010, our tool grinding department has been making drill bits,
so we don’t have to buy them. Check out the continued savings we • New lighting, floors, and painted walls
see from this investment! and ceilings make a world of difference.

• Purchased bits cost us $22 - $185 • Take a look for yourself! Tool Grinding - After
• We can make them for $6 - $16 This saves us a minimum of $1 million a year!

The initial investment: Machines Did you know? A cleaner space made for a happier and bigger team!

After two years of research, we bought two machines, • Arcadia makes 30 different The tool grinding department went “We used to have a disorderly and unclean tool room. If you
making an initial investment of $695,000 to save $803,000 drill bits for all of our plants from 6 to 12 employees! were to stop by there now it has the resemblance of a lab. It’s
in the first year! We’ve since invested in a third machine to across the globe! energized the people in the tool room. They are proud of what
make sure we can keep up with the demand! Our goal is to By recycling our carbide (material used they have accomplished. They now feel like they are a part of
save money while producing higher quality furniture, so • One of our drill bits lasted to make our bits), we save $50,000 the Ashley team. The change it did for Ashley was fantastic,
we can satisfy our customers and stay in business.” 63 times longer than a every six months! And that but the change it did for the employees was
competitor’s! doesn’t include the reduced remarkable – it empowered them to strive.
environmental impact! They are a very motivated group.”

Jerry Brooks, Arcadia, WI, Tooling, 2014

77101 FIX THE BARN BEFORE YOU FIX THE HOUSE. 71

DIRTY FINGERNAIL

Does not rely on reports to run the business, but rather goes to
the work that is being done and sees if the work is being done
right for him/herself

Has an insatiable curiosity and takes a Go and See approach to
understand the current state of the business and the competitive
realities

Takes a hands-on approach to tackle problems and demonstrates
critical thinking through use of effective questioning…asking the
5 Whys

72 CORE VALUE 73

YOU GET WHAT YOU INSPECT Rarely will something be exactly how you expected

NOT WHAT YOU EXPECT. it, which is why we don’t expect anything.
Instead, we inspect it. Rather than waiting for the
74
finished product to see what we’re going to end up with,
we inspect every piece of material and every part of the
process to make sure the end product is what we want.
After all, you can’t run a marathon from the couch!

75

Don’t assume. vs.
Follow up, and follow through.

John Marlowe, Arcadia, WI, Maintenance, 2005

Quality Product in a Box Achieving Our Mission Expectation Reality

“I was working on a second shift armoire line. "The benefit of inspecting our work is in Adapt and Improve
Second shift was just starting out. We were direct correlation with achieving our mission
all brand new on this line, and our supervisor statement. Solid inspections identify areas “I started with Ashley as an HR Intern and was assigned a project that made me realize
shared, ‘Inspect, don’t just expect,’ meaning for improving quality, reducing cost, which just how important following up with associates really is. Prior to me starting this role,
don’t just focus on what you’re doing. You allow us to do more business, and more training was introduced to help new employees understand how they were paid in Arcadia
need to understand what the person ahead business leads to more profits. Increased Upholstery. I was tasked to go out and meet with those that had gone through
of you or the person behind you is doing profits allow the company to invest in new the updated training and assess their understanding of the pay structure.
because the whole goal is to put a good technologies that keep us at the cutting This was the first time I realized that following up and being dirty fingernail
quality product in the box. Don’t just edge in the home furnishing industries." was very valuable. Having these conversations with the new associates
assume someone’s doing their job helped us adapt and look for ways to improve.”
correctly. Your job next in line is to Jessica Phenow, Arcadia, WI
make sure the person before did Quality, 2011 Brandon Ritter, Arcadia, WI, Human Resources, 2011
their job correctly.”

Jackie Cooper, Arcadia, WI
Continuous Quality Improvement, 1998

TtwwBrahaorelalukkrbzelitelaihateshbnpetoRroretuaascctwiktnehgirbaneetDsfarocpinrovyeeeurldccervAtaaeyifcrrnfkytesgocr,n!atbcSuhemeisnptndosarolievuraisnrpegnod. tteontial If you don’t take care of your quality today,
you won’t have success in the future.
76
Jim Guernsey, Advance, NC, Quality, 2013

YOU GET WHAT YOU INSPECT 77

NOT WHAT YOU EXPECT.

Lesson learned: Twreeraet yi to uars oi wf ni t.MgtbyehAotbedwttouparhiHuifWtlueirdoesplhtcswihimtskirtnosabsaeooueeiTegmeentnnuedttmtrShdgholpd.todidsaermitpal(yTtrettoorBIejbwebehohteroa2cneeedseherebmar.0isiyatnoctrmpIp8demoiyhuhonsuearrmeegagetnscsercrjAhytahtuebfohsttctcorensoroaislucmlfhcutctniiexenaoensaiagtenecrgrtssrkhdadgthbeo)oen—tnitt.oouadmeoooabtuuiWha,wlraeghuersdmab,WgepesnreideipnonoysIhattrIgpuoddgeoihiyol.ntopenheremucoIWIutaniescrhcmMrbthtdeesieekehdlwhal(asy.docafApesetbeeyutMoukdneudletrnopskitedtytnooettuihbntn.rtfefooonroujoioedgbS.tnnoenui2rsaeoylwTgribdtgnt0osmPhiuhocefot2tf1tottaiseyu2ehshrp1hnhiht,asre-,eeeahlcpAsahnsIyetnaataepsroyeinsthstnt,woaraheoadeoteudAwedlmdcproonxrpereuhaie,rraeeyertfcoaracikescoashclctdnesaofditeiddftd.ooaedditfwouaeesruIdnmfwr,ceimteClsoadrrWedtbheht,fnrtseuvoleewkIdtwytfrss,tesloAoaDetstheeruwbotulsoieari.inesolhnenuyshsmrtwtdItiteeldotr,nieteeewfihatIgdbwyoprrrweeahreui,imesoetavmdsatrwPtwowibni.tiedsoberwomiredtehAnceeaosadbroetklwrCcrqdfladiaourlt-rteretuamiooewuanoilalawnnwodyofpctlemessllgtheuimiio,ernstdtraearirdswtenygh,aeofdtka..s2adfsendetep0ytIt2tititonhc1,tkltartto1a0ettn-oaoanwctttiweyodnmdnhehhBaecdhwaodaeae)es2eoa.is.irntn0amwrocdmtlsgvid8fuawkopspoea-se.sleetclrtie3tadnIhnoyoto1natuemjjfhturiegaesslIrtetrd. hitad 100% Out-of-Box
Quality is our goal!
78
We conduct regular Out-of-Box Quality (OBQ) Audits where our employees view our
products as if they were the customer. During these audits, they answer one question:

Would you be happy with this product in your home?

Quality at the source. Why do we do this?

It’s our job, at every position throughout the We directly impact the families we
company and at every step along the way, to serve. 100% OBQ builds that trust
ensure we provide a quality product and/or and relationship that keeps them
service to our customers (both internally and
coming back. Their home is our home!
externally).

YOU GET WHAT YOU INSPECT 79

NOT WHAT YOU EXPECT.

The Dead Fish Story We don’t want to be dead fish
pickers, so we encourage each
Pleasant City, located on Pleasant River, started to outgrow its water other to go upstream or up the
source, so they built a dam upstream in order to manage the water level. line to figure out what is causing
A year or so after the dam was effectively put into place, a large number the problem in order to fix it as
of dead fish began floating in the water and getting caught on the banks. efficiently as possible!
In order to counter the problem, the city has two options:
Here’s a tip!
1 Continuously pick up the dead fish, and carry them away
from the town. Look at the five inputs that
could be causing the problem:
This increases the work the city has to do and creates
a new normal of having to fix an ongoing problem. 1. Person
2. Machine
2 Go upstream to investigate why the fish are dying, and 3. Method
find a solution. 4. Material
5. Environment
It might be a little costly to do the research, but it saves
the city a lot of time and resources in the long run by not YOU GET WHAT YOU INSPECT 81
having to manage the dead fish problem.
NOT WHAT YOU EXPECT.
80

OBSESSED WITH
FINDING A BETTER WAY.

GOOD We don’t settle. We want to be the best we can be,

BEST and we can only do that if we continue to push to find

BETTER something better. We strive to be the trendsetter

82 in our industry — which is great until another company
takes what we do and makes it better. Rather than
waiting for that to happen, we try to put ourselves out
of business by bettering our product and process before

our competition can. Then we’re the first to do it and
the best at it.

83

We have a fundamental belief that Whether it’s big changes or little
there is always a better way! changes, we strive for innovation.

We have a competitive mindset! “One of the main things that we look at every day is small
achievements. What can we do today to make tomorrow easier?
“When you’re in a race, and you’re holding that Your big achievements will happen as long as you’re making
first place, you don’t stop running. You don’t that small achievement day, after day, after day.”
slow down. You keep running the race until Robbie Hall, Verona, MS, Bedding, 1999
it’s absolutely finished. And, the race just
isn’t finished.” It took months of little changes to turn into profound change when our
engineering, design, quality and manufacturing teams took a dresser
Carlos Rodriguez, Colton, CA, Continuous Quality Improvement, 2008 being produced at 10 units an hour to 24 units an hour.

We want to be a trendsetter! How’d they do it?

“Change means to look outside the box. The teams identified the constraints in the assembly process,
taking them one by one to find a better, more efficient way
To automate is something different for the of doing it. They worked through revisions in the product
furniture industry. We’re leading edge on drawings. The next time they were assembled, they were up
that. We go out, and we build equipment. to 11 units an hour. As they overcame the next constraint they
Constantly looking for ways to automate went up to 12 units an hour until they eventually got up to 24
processes. Some work. Some don’t, so we units, increasing productivity by 250%!
just try again if it doesn’t.” The ideas for improvement came from first-hand knowledge of
our operators who assemble the dressers!
Earnie Gates, Ecru, MS, Upholstery, 1994
OBSESSED WITH FINDING A BETTER WAY. 85
We strive to be the best!

“Ashley stands for striving to be the best in
everything that we do each and every day.
We always want to continually improve.

We’re never satisfied, and we are
relentless in our approach to try and
find a better way.”

Brent Koslo, Ecru, MS, Global Manufacturing, 1999

874

Simplicity is genius! Staying up to date with
trends is only half the battle!
Keeping it simple.
We have to find a way to make our products better.
Simple doesn’t mean stupid. The more complex a process or a product, the more
opportunities there are for something to go wrong. Simple is also just easier to do. “The less variation we have,
the higher quality we can
We are always doing our best “Complexity is great, as long expect. We are better able
because we want to be known as as it’s outside of our system.” to measure and improve
the most successful business and things. That doesn’t mean
be seen with the best, highest Harry Janke, Arcadia, WI that’s where we start. We
quality furniture than any other Product Design and Engineering, 1985 start with a look that we
company. want to achieve, and then we
“It may be complex for us, but figure out how we can apply our
for another [one of our] facilities process to eliminate variation.”
it’s just normal day-to-day Phil Hoff, Arcadia, WI, Product Design, 1999
business.”
“When it comes to design, we try not to have boundaries.
Cal Everson, Arcadia, WI We try to attract everyone. A good design, is a design that even if it’s
Product Engineering, 1986 not your style, you’re still going like it, because it is visually appealing
to you. We do a lot of research on our own time, and we travel a lot.
Did you know? It allows us to understand other people and what their needs and
wants are. We go to many furniture shows worldwide and try to keep
Today, 750 of our Casegoods product designs use 20 standard size up on trends. And we have a great sales team that gives us a lot of
drawers. In 1995, we had 67 different drawer sizes. By standardizing, feedback and lets know what’s trending also.”
we get the best yield from our raw materials and quality parts.
Angel Kraemer, Arcadia, WI, Product Design, 2011
876
OBSESSED WITH FINDING A BETTER WAY. 87

Manufacturing wasn’t always so simple Taking a page from Ford’s playbook

We have Henry Ford’s invention of the moving assembly line to thank for streamlining and Henry Ford was an American Industrialist and the founder of the Ford Motor
speeding up production. There was a lot of speculation if someone would be able to mass produce Company. He was a pioneer in Continuous Flow Manufacturing and was able to
automobiles, but Ford’s team of engineers developed the moving assembly line that increased make his assembly operation close to self-sufficient.

productivity by 400%. It just took a little creativity and willingness to try something new! Henry Ford believed in many of the same principles that we do here at Ashley.

The benefits of During 2016, members of Ashley management teams traveled to
simplifying the workflow: the Ford Facilities in Dearborn, Michigan. The trip helped to further
their understandings of manufacturing processes, the need for
Higher production continuous improvement, dedicated passion for learning and
Lower cost to the customer demonstration of leadership skills in a manufacturing setting.
Consistent work pace
If we dream and have visions beyond the present,
Like Ashley, Ford is vertically alHiunetnoemrfyoorbFiomlredaossinnpsOrtaocldtlouebdcetritoh7ne, 1fo9ifr13satnmeonvtiinreg assembly you best be prepared to take on the challenges
integrated, meaning they also to see it through, picking yourself and others
own their supply chain and are up along the way. The trip was a great history
able to control costs. lesson, as well as a team building opportunity
as many groups were from mixed areas of our
Just like we control our distribution, Ford business. From a material development point of
invested in flax to make their linen over
buying cotton, engineering a new way of view, it sure made me think we could be
making cloth no one had done before! more integrated, but also the
This saved millions of dollars a year. importance of developing great
partners.
878
Rick Bryson, Arcadia, WI
Research and Development, 1991

OBSESSED WITH FINDING A BETTER WAY. 89

GROWTH FOCUSED

Understands the customer’s needs and wants, then challenges
current ways of doing business that inhibits growth and organizes
work to meet those needs

Is competitive by studying the competition, and is aggressive in
looking for ways to beat them

Strives to be the BEST by improving quality of processes, reducing
costs, doing more business, being profitable and growing the
business

90 CORE VALUE 91

BE AT PEAK STATE. It all starts with positive energy. We can control

92 our outlook on work and life, and it’s important that we

always have an optimistic mindset. We can’t

let negativity bring us down! Being at Peak State is

believing there is a way, finding opportunities and

charting a path to overcome anything. This Wanekism
helps us reach our maximum potential.

93

State: Have you noticed that when you’re upset, nothing Story: It’s the blueprint to how you view yourself
seems to go right? Or when you’re happy, everything in your environment, whether that’s at work
your state of mind, seems to fall into place? Your outlook plays a huge what you tell yourself, or home or wherever you happen to be. The
your emotion, your role in what kind of a day you’re going to have! what you think your story you tell yourself is what you think is most
mentality at any life should be, what important and what you really want out of life.
given moment Think of a time you overcame a challenge. your expectations are
Do you remember how you felt beforehand? How did that accomplishment fit
What was your state of mind then? into your story? Did it meet your
expectations?

Use these words: Not these words: Strategy: Ensure you stick with it. Set SMART goals!

Sounds good! Sure. your vision for S Specific:
We all make mistakes! I’ll try to remember. change, how you’re Measurable:M The more specific your goal, the more focused you’ll be!
I get to go to that meeting! That was a bad decision. going to get there,
Leettmmeesseteta arermeimndienrdeberfore I forget! I have to go to that meeting. your action plan for
before I forget! achieving your goals
If you can’t track your progress,
What did you do to setting a goal? what’s the point
overcome that challenge? of
How could you have
Don’t sweat the small stuff! approached it A IAf ict’stiaocntio-no-roriieenntetde,dit:’s easier to create a plan of attack.
differently? R Realistic:
Studies have shown that 85% of the stuff
Think Positive! we worry about usually has a positive or Timely:T oWuerswelavnetstuoppfuosrhsuocucrseeslsv,ens,obt ufatilwuree.also want to set
neutral outcome, and 80% of people say
they handled the outcome
better than expected!

Deadlines are a good way to keep all of us accountable!

94 BE AT PEAK STATE. 95

Have a growth mindset! How do you see the glass?

Growth mindset: Fixed mindset: Choose Your Approach

The belief that we can change, grow The belief that we will always stay "You take responsiblity for yourself first by
and accomplish new things. We are the same, no matter how hard your attitude. You have to wake up in the
accountable for our own actions and we try. We find excuses and reasons morning, and you have to choose how you're
take responsibility. to blame others for our actions and going to approach the world. Because if you
things that go wrong.” choose to approach it with the negative that
exists out there, you're going to fail. You have
How would you handle it? Half full to consciously choose to approach the world
in that, 'I'm going to win. I'm
Tkheoptosteomklieadtuse!p! ?%#! !#$% OR Half empty going to figure it out. No
?%#! matter what.' That's what
$!%# I should Open the Door we do."
have went to Archie Hall, Colton, CA, Retail, 2005
bed earlier!! “Don’t be the same, be better. It’s important
[to be better] because it’s the only way we’re Peak State is a way of living
It’s not about just trying our best. It’s about challenging ourselves and going to grow. That mentality will take you that allows us to be the best
using new strategies to solve problems! If you catch yourself saying, ‘I’m to another level. You’ll get out of that stage version of ourselves and
not good at that,’ add ‘yet’ to the end! of, ‘I will only do what I need to do. I’ll only maximize potential.
do what I have to do.’ But
when you get away from,
‘always the same,’ it opens
a lot more doors.”

Israel Garcia, Redlands, CA
Distribution Center, 2016

96 BE AT PEAK STATE. 97

DON’T BE A VICTIM; When life gives you lemons, you can make lemonade —
FIND A WAY. but first you have to find the sugar and the strength to
squeeze the juice out. Sugar isn’t always easy to find,
SUCCESS
FAILURE but asking around and looking for unexpected

RESULTS substitutions for it can lead to some pretty interesting
results! You can’t control what type of lemons you’re
98 going to get or when they will come. Fortunately, you can
control how you respond. Positive attitudes get positive

results, and determination and the ability to think
a little out-of-the-box will get you success.

99