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     Kaizen Training
    Competing in the Marketplace
“What factors are important to the customer?”




John Deere - Supplier Development



                                          John Deere
                                          Supplier Development
                                                                2
    Kaizen Training

   TIME:          The single best indicator
                  of competitiveness


Set-up or Change-over Time
Manufacturing Cycle Time
Product Development Time
Customer Lead Time / Delivery Time
Working to reduce or minimize each of these times can
make your company more valuable to both its internal
and external customers.

                                                John Deere
                                                Supplier Development
                                                                                        3
                 Kaizen Training
                     Shrinking Lead Times
  Order Lead Times       Manufacturing Lead Times          Delivery Lead Times




        Order Lead Times Manufacturing Lead Times Delivery Lead Times


Reducing the overall time from receiving the order to delivering the
product makes your company more responsive to the customer.
This can become the deciding factor when the customer makes
their selection.
As can be seen, manufacturing is only one part of the entire
process. Inputting, processing, and issuing orders is an area
for improvement, as well as, assembly, loading and delivery
to the customer`
                                                                        John Deere
                                                                        Supplier Development
                                                                             4
             Kaizen Training
      Where’s the Time in Lead Time
 This timeline represents an overall lead-time, with very little
 time spent on adding value to the product.

          Non-Value Added Time (NVA)       Value Added Time (VA)
            99% of Total Lead time                  1%



     Common                       Concentrated on reducing VA time,
  Improvement Efforts             with no attention given to NVA.

          Non-Value Added Time (NVA)          VA
            99% of Total Lead time           1/2 %


Results of Common Improvement efforts, did not improve
response time. VA time is reduced, but, the costs for those
improvements in lead time was substantial.
                                                             John Deere
                                                             Supplier Development
                                                                                          5
             Kaizen Training
     Where’s the Time in Lead Time
When we look at attacking the NVA Activities in the Timeline
and compare that to the original timeline:
                         Greatest Opportunities are actually here!


      Non-Value Added Time (NVA)                  Value Added Time (VA)
        99% of Total Lead time                             1%


     NVA Time                      VA
95% of Total Lead time             5%




  Great Job!!            This shows a 5X improvement in lead time

                                                                          John Deere
                                                                          Supplier Development
                                                                              6
           Kaizen Training
      Different Types of Activities
Being able to tell the difference between NVA and VA
activities is an important step in the Improvement Process.


                  Value Added           An activity that changes raw
                  Activity (VA)         material to meet customer
                                        expectations.

                                        Those activities that take
                Non Value Added         time, or occupy space but do
                 Activity (NVA)         not add to the value of the
                                        product.
You must ask yourselves “Would you as a customer be
willing to pay for any NVA activity being performed to that
NEW 4x4 Pickup you just ordered?”
                                                              John Deere
                                                              Supplier Development
                                                 7
     Kaizen Training
Some examples NVA Activities:

                        Waiting on
    Walking
                        machine cycle

    Unnecessary         Generating
    stock on hand       useless reports

                         Unnecessary
    Transporting         motion
    parts


THE GOAL IS TO ELIMINATE THE
NON-VALUE ADDED ACTIVITIES.
                                 John Deere
                                 Supplier Development
                                                                          8


                                   A definition:

                                   Destroy, in our minds, the
                                   concepts and techniques of
                                   manufacturing that we
                                   practice today.

                                   Create a vision of what our
                                   production system and
                                   manufacturing techniques
                                   should be.

We must avoid the urge to          Carry out that Vision by
discover more sophisticated and
technological solutions to tasks   breaking through the status
we shouldn’t be doing at all.      quo.
                                                          John Deere
                                                          Supplier Development
                                                           9
       Kaizen Training
      Basic Rules for Change
Keep an open mind to change
No such thing as a dumb question or idea

Avoid spending money (Capital expense should
be a last resort)
Maintain a positive attitude
Don’t’ make excuses & question current practices

Think about how to do it, NOT why it can’t be done

Just do it!!

Have Fun!!!
                                           John Deere
                                           Supplier Development
                                                                 10
          Kaizen Training
 Steps on Team Development

  Forming This is the development of a multi-functional
             team with a variation of backgrounds and
             knowledge

 Storming Open & honest discussion, also brainstorming

  Norming Stage where the group agrees how to
             operate as a team
Performing Agreement on solutions & taking action

Adjourning Closing on the continuos improvement process
             after 30 days
                                                  John Deere
                                                  Supplier Development
                                                                     11
           Kaizen Training
           What is TAKT Time?

TAKT time is how many minutes or seconds are needed
to make one part when considering the daily volumes, to
be produced in that workcell and the total time available to
perform the job.

TAKT time is NOT the time it takes to manufacture the
product. It is based on customer demand.

Who is the customer?
          The next operation
          Customer orders

                                                      John Deere
                                                      Supplier Development
                                                                      12
          Kaizen Training
         TAKT Time Calculation
 Production Time Available / Period
                                                  TAKT
 Number of Required Units / Period

 Production Time Available / Period (one shift):
   Shift Time ( 8 hrs. )            480 mins.
   Breaks - 2 @ 10 minutes          - 20 mins.
   Clean-up at end of shift           - 5 mins.
   Production Time Available:        455 mins.    or 27,300 secs.

 Units Required / Period (one shift):
   10,500 Units Sold Monthly
                                  500 Required units / shift
    21 Working shifts / month

                    27,300 secs / shift      54.6 secs.
TAKT Time:           500 units / shift
                                                       John Deere
                                                       Supplier Development
            Kaizen Training                                              13



The 5S Housekeeping Standards
First Step towards Continuos Improvement

The aim of 5S is to create an atmosphere to keep a clean,
organized, safe and efficient workplace for everyone.

The foundation for the practice of 5S, comes from a Japanese
program derived from these words, seiri, seiton, seiso, seiketsu
and shitsuke. The 5S’s are a conventional approach towards
maintaining and improving the work place. The following words
have been chosen for the 5S acronym’s.

     Sort            Sanitize (Safety)                  Sweep

     Straighten                 Sustain
                                                          John Deere
                                                          Supplier Development
                                                                             14
              Kaizen Training
               Meaning of the 5S’s

         Sort       Examine everything at the workplace & identify
                    what is needed and what can be discarded

Straighten          Organizing the way things are put away with
                    efficiency, quality, and safety in mind. Need to
                    decide where and how things should be put away
                    and what rules should be obeyed to insure that it is
                    maintained.

     Sweep          Sweeping, scrubbing and cleaning of the building,
(Scrubbing clean)
                    machines, fixtures & tools so that all areas of the
                    workplace are neat & tidy. This leads to early
                    detection of mechanical problems before they
                    become major breakdowns. Machines cry!
                                                              John Deere
                                                              Supplier Development
                                                                              15
             Kaizen Training
                Meaning of the 5S’s

Sanitize          Insuring that each workplace is properly
  (Safety)
                  designed for safety. This is to protect every
                  member from the dangers during the
                  performance of their assigned tasks.


Sustain           Developing the practice necessary to continually
                  participate in the 5S process. This requires that
(Standardize)
                  each of the S’s become a personal habit. This
                  is the most difficult of the 5S’s, but it is the most
                  important factor in achieving long term success.
                  Establishing routines and procedures for
                  maintaining and improving on the first four (S’s),
                  incorporating visual management tools.
                                                               John Deere
                                                               Supplier Development
Kaizen Training                  16




 WASTE


                  John Deere
                  Supplier Development
    Kaizen Training                          17




     Do MORE with LESS



Staffing       Productivity


 Waste         Productivity



                              John Deere
                              Supplier Development
                                                                    18

                 SHIFT MINDSET
          CURRENT                              REQUIRED
               THINKING                            THINKING

                               Processing Transportation



                          Inventory    TYPES Correction

 WASTE                     Waiting
                                         OF
                                       WASTE
                                             Over-
                                             Production

                                      Motion




WASTE NOT DEFINED         WASTE IS "TANGIBLE”
REACT TO LARGE EXAMPLES   IDENTIFY MANY SMALL OPPORTUNITIES
REACTIVE IMPROVEMENT        -LEADS TO LARGE OVERALL CHAGE
                          CONTINUOUS IMPROVEMENT


                                                     John Deere
                                                     Supplier Development
                                                                                 19



             ELEMENTS OF WASTE


Definition                              Example
1. Transportation - Transporting   1. Transportation - Carrying
farther than necessary or          Tools to Point of Use
temporarily locating, filing,
stacking and moving parts
(people, paper, information) is
waste.

2. Correction - Doing something     2. Correction - Redo an Activity
over is waste.                     Because of Error

3. Overproduction - Generating      3. Overproduction - Number of
excess paper or information, or     Copies
generating information or paper
too soon in a process is waste.

                                                                  John Deere
                                                                  Supplier Development
                                                                                 20



            ELEMENTS OF WASTE


   Definition                            Example
4. Motion - Unnecessary work         4. Motion - Tools in drawers
   movements are a form of waste.

5. Waiting - Waiting for people,    5. Waiting - Meetings to start
   paper and information is waste -
   it stops work.

6. Inventory - Too much of          6. Inventory - Supplies
   anything is waste.

7. Processing - this is waste in     7. Processing - Typed when
   the process itself. Redundant       handwritten would be
   activities                                    sufficient


                                                                  John Deere
                                                                  Supplier Development
        Kaizen Training                                                   21




• Process requires ongoing inspection and enforcement to
  ensure “Standardized Work” is being followed
                              Standards



                                          Inspect
                    Enforce




• Process does not improve automatically
                           Standardize


           Problem Solve
                                             Stabilize
                                .




                               Identify
                               Waste
- Following standards will only maintain, not improve, the process.
- Improvement focuses on the entire process.


                                                           John Deere
                                                           Supplier Development