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TWI Continuous Process Improvement Overview Charles S. Logan

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CPI uses four very important principles for a total improvement to any program/process. - Lean (Eliminate Waste) - Six Sigma (Minimize Variation) - Theory of Constraints (Strengthening Weakest Link) - Training within Industry (Standard Work) You can’t just use one…… When all four are used together, you can truly see the difference!!!

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Page 1: CPI Training overview

TWI

Continuous Process Improvement

Overview

Charles S. Logan

Page 2: CPI Training overview

2

• Explain the basic principles of Continuous Process Improvement (CPI), including Lean Thinking, Six Sigma, Theory of Constraints (TOC) and Training Within Industry (TWI).

Learning Objectives

At the end of this lesson you will be able to:

Page 3: CPI Training overview

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History of CPI

• Roots of Lean: back to early 1900’s• Henry Ford: continuous flow production, waste

elimination• TWI: (Training Within Industry), 1940-1945 • Kiichiro Toyoda and Taiichi Ohno: low inventories,

flexibility• U.S. supermarkets: pull systems• Shigeo Shingo: mistake proofing, reduced set up times• Toyota Production System• MIT and James Womack: bring Lean back to U.S.• Eli Goldratt: published book “The Goal”, early 1980’s

(TOC)• Motorola & others: developed Six Sigma early 1990’s

NIKE

Page 4: CPI Training overview

Continuous Process Improvement

• CPI uses four very important principles for a total improvement to any program/process. - Lean (Eliminate Waste)

- Six Sigma (Minimize Variation)

- Theory of Constraints (Strengthening Weakest Link)

- Training within Industry (Standard Work)You can’t just use one……

When all four are used together, you can truly see the difference!!!

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Four Methodologies• “Lean Thinking” is a management philosophy focusing on

reduction of the 8 wastes in products and services. By eliminating waste, quality is improved, production time is reduced, and cost is reduced.

• “Six Sigma” can be defined as a methodology to manage process variations that cause defects, defined as unacceptable deviation from the mean or target; and to systematically work towards managing variation to eliminate those defects.

• “Theory of Constraints (TOC)” a methodology for identifying the most important limiting factor (i.e. constraint/bottleneck) that stands in the way of achieving a goal.

• “Training Within Industry” standardized techniques, training, and continuous improvements in order to maximize the potential of every worker. Source: Wikipedia Encyclopedia

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What is Lean?Lean Principles

• Value has been specified– From the Customer’s perspective

• The Value Stream has been identified– For each product/service

• The product/service Flows without interruptions

• The Customer can Pull value from the process

• Continuous pursuit of Perfection

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Wastes-Those Elements of a process that Do Not Increase the Value of a Product or Service as perceived by the Customer, but Increases Cost and Cycle times.

IDENTIFY AND ELIMINATE THESE WASTES:

Types of Waste:

Inventory (Excess)

Transportation

Motion

Knowledge Check: Eight Sins of Waste

T

MI

WaitingOver-ProductionOver-ProcessingDefectsD

WOO

U Under utilization of employees

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Eight Forms of Waste (Muda)Type Physical Process Transactional Example

Defects Scrap or Rework Drawing or PlanningErrors, Rework

Waiting Parts, Tools,Information

Meetings, Approval, System Down Time

Transporting Parts Moving toWarehouse and Back

Data Handoffs

Inventory Excessive Work-in-Process

Backlog of Design orTooling Changes

Motion Retrieving Parts,Tools, Information

Poor Office Lay-Out

Over-Processing Performing UnneededOperations

Approvals (Too Many Sign-offs)

Over-Production Working Ahead ofSchedule

Printing Paper Too Soon

Under utilization ofemployees

More people involved than required to perform physical or transactional tasks.

Page 9: CPI Training overview

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The Value of Time

TIMEBrokenComponent

RepairedComponent

Wait

Transport

Transport

InspectSet-up

= Value-Added Time = Non-Value-Added Time (WASTE)

Machine Machine

Disassemble

Start Finish

Re-InstallRemove From

Ship

Value-added time is only a very small percentage of the total time.

Within the 8 wastes, time is a significant factor.

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Time

The Value of Time

2) Lean Focus• Make all of the Value

Stream visible• Reduce or eliminate

Non-Value-Added portions of the process

• Result: Large time savings

1) Traditional Focus• Improve Value-Added

work steps• Better tools, machines,

instructions• Result: Small time savings Amount of

Time Eliminated

amount oftime saved

Small

Note: The focus is not on the value-added steps or the people performing them. Instead, the focus is to remove barriers and better support the people doing the work!

LARGE

1

2

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What is Six Sigma ?• Sigma (s) is the 18th letter of the Greek alphabet.• In statistics, s represents standard deviation, a

measure of variation for process performance.• Sigma is calculated from population or sample

data.– Process data can be collected and evaluated to determine its

impact on productivity, performance, and customer satisfaction

– The measurements provide the ability to “predict” process performance and provide a benchmark to determine if actions have produced results

Page 12: CPI Training overview

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What is Six Sigma? (cont’d)

“Six Sigma” is an optimized performance level approaching zero defects in any process - whether it produces a:• product• service • transaction

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MEASURED IN UNITS OF STANDARD DEVIATION (SIGMA)

Critical Relationship Between Process Performance and Customer Satisfaction

Voice of the Process

Voice of the Customer

Source: ASQ LSS Training Material

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DMAIC Problem-Solving Roadmap

CONTROL

IMPROVE

DEFINE

MEASURE

Validate & Replicate Changes

ANALYZE

DESCRIBE AS-IS CONDITION

IDENTIFY OPPORTUNITY

IDENTIFY KEY CAUSES

PROPOSE & IMPLEMENT SOLUTIONS

SUSTAIN THE GAIN

TWI

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Why “Six Sigma”?

• 20,000 lost postal mail items per hour

• 15 minutes of unsafe drinking water per day

• 2 long/short landings per day at a major airport

• 5,000 incorrect surgical operations per week

• 7 hours of lost electricity per month

• 20,000 incorrect prescriptions per month

• 7 lost postal mail items per hour

• 1 unsafe minute every seven months

• 1 long/short landing every five years

• 1.7 incorrect operations per week

• 1 hour without electricity every 34 years

• 68 wrong prescriptions per year

Hey, 99% is good enough right?

99% 99.99966% (6 Sigma)

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What is Theory of Constraints?

• A system must have a goal on which everything in that system is evaluated

• Systems function as chains. Strengthening the weakest link benefits the system the most

• Optimum system performance is NOT equal to the sum of the individual process optima

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Principles of TOC

• Systems operate in an environment of cause and effect. Visible problems are usually indicators (undesirable effects or UDE) of some critical root cause(s) that must be addressed

• An optimal solution deteriorates over time. Improvement must be continuous.

• Policy constraints are the most common and most difficult to break. Policy constraints offer the most opportunity for system improvement.

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TOC focuses on Constraints

• Constraint = Anything that impedes Throughput. TOC concentrates on identifying and improving the worst impediment

• Identifying constraints– Visual identification of WIP (Work in Process)– Calculating Throughput for each process step

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TOC Measures of Progress

• Throughput: The rate at which the system produces customer value or generates money

• Inventory: Inventory is all the money invested in buying things that will at some time be sold (turned into Throughput) or that is tied up in the system (investment). Includes costs for raw materials, infrastructure, etc.

• Operating Expense: The costs associated with turning Inventory into Throughput. Includes costs for labor, utilities, interest, etc.

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TOC Applications• Drum-Buffer-Rope (DBR): Links the pace of the first step in a

process to the exit rate of the constraint. One of the most common TOC applications; often applied to repetitive processes.

• Critical Chain: An advanced application of DBR used in the project management field which treats time as inventory.

• Supply Chain Management: DBR concepts applied in the logistics arena, concentrating on the system’s ability to replenish stock. The metric, “Time to Reliably Replenish” (TRR), is an offshoot of this application.

• Thinking Processes: TOC tools to link improvement efforts to the system’s goal using the logic of cause and effect. Uses logic trees as a way to step through the process.

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TOC Steps1. Identify - What’s the constraint?

2. Exploit – Get the most out of the constraint with minimum investment.

3. Subordinate - Focus non-constraints towards supporting the constraint

4. Elevate – Increase the constraint’s capacity

5. Repeat Step 1 - The constraint has probably moved.

(From The Goal by Eli Goldratt)

Drum-Buffer-Rope uses this methodology

Page 22: CPI Training overview

What is TWI?3 J-Programs

Developed by the U.S. Government to increase WWII production, by standardized techniques, training, and continuous improvements in order to maximize the potential of every worker.

Page 23: CPI Training overview

What is TWI?

Job Instruction (JI): Structure for effective training, to eliminate the waste caused by varied work practices.

JIT taught supervisors the importance of proper training for their workforce and how to provide this training.

Job instruction is the way to get a person to quicklyremember how to do a job; Correctly, Safely & Conscientiously.

(LEAN)

(SIX SIGMA)

Page 24: CPI Training overview

TWI Job Instruction Card

Page 25: CPI Training overview

What is TWI?

Job Methods (JM): Structure for job improvement, listing each step and questioning why, what, where, when, who & how which leads to ideas towards improvement.

JMT taught how to generate and implement ideas for continuous improvement.

Page 26: CPI Training overview

TWI Job Methods Card

Page 27: CPI Training overview

TWI and Kaizen

• Job Methods - The Original KaizenThe objective of Job Methods was to give supervisors a practical method to improve production in their work area other than better technology, proving to be both simple and effective.

Job Methods pocket cards were issued in the US to stimulate ongoing improvement, an idea similar to kaizen, usually translated as CONTINUOUS IMPROVEMENT. As TWI originally expressed it.

Page 28: CPI Training overview

What is TWI?

Job Relations (JR): Structure for how to promote teamwork and resolve basic worksite communication problems.

JRT taught leadership and human relations.

Page 29: CPI Training overview

TWI Job relations Card

Page 30: CPI Training overview

Job Breakdown SheetReasons

• Always go with key points

• Makes the job easier to learn or remember

• Support: Q,C,D,T,V and

Safety

Key points• Safety

• Makes or breaks the job

• Makes the job easier to do

• Calibrates 5 senses

• Special Information

Important Steps• Advance the

work

• Change form, fit or function

• Adds Value

• Noun & Verb

Page 31: CPI Training overview

Step Job Instruction

Job Methods

Job Relations PDCA Cycle Scientific

Method

1Preparation

Prepare the worker

Break down the job

Get the facts

Define & Analyze a Problem

Observation & Description

2Presentation

Present the operation

Question every detail

Weigh and decide

Devise a Solution

Formulation of an Hypothesize

3Application

Try out performance

Develop the new method

Take action

Confirm Outcomes Against Plan

Use of Hypothesis to make Prediction

4Inspection

Follow upApply the new method

Check results

Standardize Solution

Interpret Predictions & Conclusions by Experiments

3 J-Programs overviewTWI is simply applied Scientific Method!

Page 32: CPI Training overview

Training Within Industry

WHEN THE 3J-PROGRAMS ARE USED TOGETHER

Page 33: CPI Training overview

Job Instruction (Know How)

- Develop Standard- Train Each Person Job Methods (Better Way)

- Question Every Detail

- Improve Standard

Job Relations (Confidence to Proceed)

- Encourage Innovation- Solve People Problems

Training Within Industry…

…it’s that simple

Variability Causing Unstable Performance

Reduce Variability and Cut Waste With Standard Work

Improve Performance and Bottom Line From Stable Baseline

You must standardize the work and remove variability first before you can improve it.

Stable Process & Less variation

Improved Process

Page 34: CPI Training overview

STANDARD WORK is nothing more than applying Job Methods

(Better Way) and Job Instruction (Know How) within the boundaries of Job Relations (Confidence to Proceed).

Training Within Industry…

JM(Kaizen)

JI(standardize)

JR(No Blame, Mentoring, Understanding)

Holding StandardWork

Not Holding StandardWork

Indicators ofImprovement

Time

JI(standardize)

JI(standardize)JM

(Kaizen)

JM(Kaizen)

JM(Kaizen)

(Performance with Sustainment)

(Performance without Sustainment)What actually

becomes the

standard when

people do not

sustain the changes

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Page 36: CPI Training overview

CPIContinuous

Process Improvement

Integrating a Culture of Continuous Improvement

1. Identify the Constraint2. Exploit the Constraint3. Subordinate to the Constraint4. Elevate the System’s Constraint5. Repeat Step 1, the Constraint

has probably moved

Theory of Constraints

Constraint Mitigation Consistent Repeatable Processes Process Design / Redesign Defect Prevention Statistical Analysis Voice of the Customer

Six SigmaReducing Process

Variation

Training Within IndustryJob Instruction

(Know How) Develop Standard Train Each Person

Job Methods(Better Way) Question Every Detail Improve Standard

Job Relations (Confidence to Proceed) Encourage Innovation Solve People Problems

Page 37: CPI Training overview

PMP & CPI PROJECT LIFE CYCLE

STARTProcess Owner

CLOSURE

SUSTAIN /CONTROL

VALIDATE(BI-WEEKLY REPORTS

TO CPI OFFICE)

INITIATE

PROJECTSELECTIO

NDEFINE(CONCEPT)

ENDProcess Owner

TRANSFER

TO PM / LEAD

BELT

MEASURE

CONTROL

ANALYZE

DEFINE (DETAILED)

PLANPM / LEAD BELT

MONITOR & CONTROL MENTORING & OVERSIGHT BY

CPI LEAN CHAMPION(BI-WEEKLY REPORTS TO

CPI OFFICE)

SEE THE

PROCESS

SEE THE

WASTE

TRANSFER

FROM PM / LEAD

BELT

IMPROVE IMPROVE

VISUALIZETHE

PERFECTSTATE

LEADTHE WAY

EXECUTEPM / LEAD BELT

(LEAN / 6 SIGMA / TOC / TWI)

Page 38: CPI Training overview

DMAIC Process

TWI

Page 39: CPI Training overview

• Select a Project (use Process Managers and/or CPPI Office)

• ID Business Opportunity (What, Where, When, Extent, Impact)

• Develop Charter (Charter, Business Plan, Strategic Plan, SMART Objectives)

• Develop SIPOC (SIPOC)

• Develop Project Plan / Timeline

DEFINE

Page 40: CPI Training overview

• Develop Data Collection Plan (Collection Plan)

• Develop As-Is Map (Gemba Walk, Walk the Process, Base Line Data)

• Continue Measurement (Base Line Data)

• Validate Measurement System (Gage R&R)

• Evaluate Normality, Stability & Capability (Run Charts, Control Charts, Process Capability)

MEASURE

Page 41: CPI Training overview

• Identify Processes Constraints (TOC / LEAN)

• Organize Potential Causes (Cause & Effect Diagram)

• Preform FMEA (Failure Modes & Effects Analysis)

• Conduct Hypothesis Testing • Develop Future State Map (Lean, Six Sigma, TOC)

ANALYZE

Page 42: CPI Training overview

IMPROVE

• Generate, Evaluate & Select Solution• Conduct Design of Experiment (LEAN)

• Pilot & Debug (TWI: JI & JM)

• Plan the Implementation (Gantt Chart, TWI: JI & JM)

• Implement Plan (TWI: JI & JM)

Job Instruction (Know How)

- Develop Standard- Train Each Person

Job Methods (Better Way)

- Question Every Detail

- Improve Standard

Job Relations (Confidence to Proceed)

- Encourage Innovation- Solve People Problems

Page 43: CPI Training overview

• Monitor the Process (Run Chart, TWI: JM)

• Establish Visual Controls• Control as Required (Control Plan)

• Manage Process Performance • Clean Hand-off to Process Owner

CONTROL

Page 44: CPI Training overview

• Monitor the Process• Manage Process Performance (Sustainment)

VALIDATE

Baseline

Performance with Sustainment

Performance without Sustainment

Historical Momentum

RIE #1 RIE #2 RIE #3 RIE #4

RIE: Rapid Improvement Event

Page 45: CPI Training overview

CPIContinuous

Process Improvement

Integrating a Culture of Continuous Improvement

1. Identify the Constraint2. Exploit the Constraint3. Subordinate to the Constraint4. Elevate the System’s Constraint5. Repeat Step 1, the Constraint

has probably moved

Theory of Constraints

Constraint Mitigation Consistent Repeatable Processes Process Design / Redesign Defect Prevention Statistical Analysis Voice of the Customer

Six SigmaReducing Process

Variation

Training Within IndustryJob Instruction

(Know How) Develop Standard Train Each Person

Job Methods(Better Way) Question Every Detail Improve Standard

Job Relations (Confidence to Proceed) Encourage Innovation Solve People Problems

Page 46: CPI Training overview

Continuous Process Improvement

TWI

Any Questions?