kaizen - strategy for performance excellence

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A STRATEGY FOR

PERFORMANCE

EXCELLENCE


Executive Overview

Participant manual

Tools WorkbookKnowledge

Breakthrough

Lecture notes Lecture notes

Performance Excellence Series

Training Module Elements


Table of Contents

Executive Overview

Session 1.0 Introduction…………………………..3

Session 2.0 Wastes elimination…………………. .9

Session 3.0 Kaizen Methodology………………..15

Session 4.0 Integrated Improvement Strategy…...28

Session 5.0 Kaizen Project Examples……………32


Model: Performance ExcellenceDeliverable Integration of Lean Robust Processes

Through Elimination of the Nine Wastes of Processes: Over production, Delays, Transportation, Process, Inventories, Motions,

Defective Products, Untapped Resources, Mis-used Resources

Manufacturing

Production

Feedback

InputsCore Business Processes

Output

1. Customer

*Wants

*Needs

2. Suppliers

Raw Material

Sub-Assemblies

Products

MRO

3. Customer Returns

Signature Service

Non-Signature Service

Demand Management

Supply Management

• Procurement

• Inventory/Material

Management

• Supplier Management

Forecasting

Order Services• order attainment

• order entry

Service > 99%

Finance

Treasury

Accounting

What is needed,

in Quantity that is

needed at the

time it is needed

at a competitive

cost

+

Flexibility,

Responsiveness

towards

customer’s wants

and needs

Delivery:

• Minimal shipment/order

• On - time

Costs:

• low cost associated

with customer value focus

Quality

• Low to zero defects

• Service beyond shipment

• Feedback

Lean Site Manufacturing Total Productive Maintenance Mistake- Proofing (Poka-Yoke)

Quick Changeover (S.M.E.D)

5S Statistical Problem SolvingDesign of Experiments

Process Capability Analysis

Kanban Visual Management Pull Systems Cellular Manufacturing Priority Planning

Spaghetti Chart Takt Time

Quality Cost & DeliveryStandard Work

Fishbone Pareto

Production Part Approval Process

Advanced Product Quality Planning

Product Creation Process

QuintusMulti-Generation Product Planning

Regression Analysis

Failure Mode Effects Analysis

Pareto Analysis

5W’s, 2H’s

MSA

Mistake Proofing

Process Mapping

HistogramFishbone Diagram

Affinity Diagram

Approach: Kaizen Six Sigma (6δ)

Information Technology

Operational Management

Engineering Management

Quality Management

Human Resources

Order Fulfillment

Operations Management

Marketing/Sales

Statistical Process Control

Parameters

Value

1st Priority People

Optimize Profits/EVA

Continuous Improvement

Lean - Robust Process

Management Characteristic

Visionary

Cooperation & Collaboration

Focus & Perseverance

Required Information

Individual Behavior Motivation

Organization Evolution

Group Dynamics

Market Requirements


Why Kaizen

TimeCPI Project

Time

CPI

Time

Sa

vin

gs

Sa

vin

gs

Sa

vin

gs

Process

Improvement

Project

Implemented

Maintenance of

Process

Performance

Kaizen

CPI• Data Driven Methodology to Magnify Impact of

Process Improvement

• Apply Control Techniques to Eliminate Erosion of

Improvements

• Proceduralize/Standardize Improvements for

Improved Maintenance of Critical Process Parameters

Kaizen• Use Small Teams to Optimize Process Performance

by Implementing Incremental Change

• Apply Intellectual Capital of Team Members Intimate

with Process

CPI Projects Emphasize

Control and Long Term

Maintenance

Kaizen Projects

Emphasize Incremental

Improvements


CPI

• Disciplined Methodology

• Technical Approach

(Quantitative)

• Data Driven - Statistical

• Operational Focus

• Reduce Variation

• Focus on Large Impact

• Larger/Longer Projects

Kaizen

• Philosophical Approach

• Common Sense Approach

(Qualitative)

• Data Driven - Observation

• Customer Focus (Takt time)

• Waste Elimination

• Incremental Change

• Smaller/Shorter Projects

Performance Excellence Obtained

by Continuous Improvement

Improvement Tools

Complimentary Tools Driving Continuous Improvement

Expanding the Strategy


Comparative Analysis

Improvement Methodologies

• Similar in Structure

• Improvements measured against established

process

• Team oriented

• Similar improvement tools

• Measure effectiveness of improvements

• Maintain new performance level

• Standardize & Proceduralize

Results

• More Efficient Processes

Comparison

• Both are Effective Improvement Mechanisms

• CPI/6s best applied to large complex

problems

• Kaizen/Lean best applied to achieve

incremental changes and eliminate wastes.

Measure

- Data Collection

- Determine Process Potential / Goals

Evaluate

- Root Cause / Vital Few

- Statistical Analysis

Improve & Verify

- Implement Improvement

- Validate Improvement

Standardize

- Standardize / Leverage

- SPC

- Update Procedures

Evaluate

- Baseline Process Performance

- Establish Target

Decide

-Compare solutions

- Choose

Act

-Communicate

- Implement improvement

- Control

Measure

- Validate improvement

- Standardize

- Update ProceduresFocus

- Reduce Process Variation

- Identify Critical Cause and Focus

Resources for Maximum Impact

Focus

- Eliminate Waste 5 s

- Seek Incremental Process Changes

Kaizen/Lean6

• Different methods used to determine

improvement opportunities

Summary

- Technical Approach based on

Statistical Analysis

- Requires Significant Data Collection

- Best applied to Manufacturing

Processes

- Typical Projects 1-3 Months

Summary

- Common Sense Approach based on

Observation

- Applicable to all types of processes

- Defined improvement strategy

- Typical Projects 1 week


Major CPI

Tools (6 ) Kaizen Lean Description

Cp/Cpk 4 Process capability assessment

DOE 4 Design of experiments

SPC 4 Process control based on statistics and data analysis

FMEA 4 Risk assessment tool

Regression 4 Correlate effect one variable has on another

Process Map 4 4 4 Map process steps to communicate and identify opportunities

5 whys /2 hows 4 4 4 Determination

methods for root cause discovery

Pareto 4 4 4 Column chart ranking items highest to lowest

Fishbone 4 4 4 Cause / Effect Diagram

5S 4 4 Elimination waste

Visual Mgmt 4 4 4 Emphasis on visual techniques to manage process

Poka-Yoke 4 4 Error proofing techniques

Spaghetti Chart 4 4

Kanban 4 4 Material storage technique used to control process

Takt Time 4 4 Determine pace or beat of a process

Std Work 4 4 Evaluate tasks done during a process

SMED 4 4 Single minute exchange of dies - Quick machine set up

TPM 4 4 Integrate maintenance strategy with process

Cellular Flow 4 4 Reduce inventory & cycle time thru process layout and pull

production techniquesExpand Process Improvement Program to Utilize Kaizen Tool Kit

Tool Kit Comparison


Performance Excellence:

Expanding the Strategy through Kaizen

Introduction

Wastes elimination

Kaizen Methodology

Integrated Improvement Strategy

Kaizen Project Examples


Continuous Improvement

Is the continuous

elimination of waste


What Does Kaizen Mean?

KAI ZENTo modify, to change Think, make good, make better

= KAIZENMake it easier by studying it, and making the improvement through

elimination of waste.

+


What is Waste?

Everything we make that

costs something without

adding value to the product

Our objective > Value added = Maximum

Non-Value Added = Minimum


The Nine types of waste

Overproduction

Delays (waiting time)

Transportation

Process

Inventories

Motions

Defective products

Untapped resources

Misused resources

9

Wastes


Elimination of Wastes and Continuous

Improvement

Elimination of

wastes

KAIZEN

Continuous

Improvement

One piece flow

SMED

Visual Controls

Workplace

Organization

Kanban

Standard Work

Process Control

Total Productive

Maintenance

Poka-Yoke

The Approach The Means The Strategy

Lead-time

Costs

Quality the first

time


Introduction

Wastes elimination

Kaizen Methodology






Kaizen Methodology Kaizen improvement

The mandate

One-piece flow

SMED

Visual controls

Kanban

Workplace organization

Standard work

Quality every time

Total productive maintenance


Kaizen Improvement is a Team

Multi-disciplinary

Specific mandate

Short delays

Responsible teams


Kaizen Improvement

is composed of 4 steps

To Evaluate

To Decide

To Act

To Measure

E

D

A

M


Kaizen Improvement

is continuous improvement


Kaizen Improvement

is NOW !!!


To Evaluate

You can only improve things

you know well.


To Evaluate

Tools for analysis

•The 5 whys : search for root cause

•Matrix

•Pareto diagram

•Fishbone diagram

•Distribution histogram

•Check sheet

•etc.

E

D

A

M


To Decide

The value of a decision is no greater than the

quality of the analysis.

Compare all solutions;

cost, feasibility, efficiency, etc.

Choose

Establish measurable objectives

E

D

A

M


To Act

Communicate

operators,

other employees from the area

other people servicing the area

Implement decisions

Control their execution

E

D

A

M


To Measure

Compare the results in relation

to the objectives.

Resume EDAM

E

D

A

M


Become familiar with the Mandate

Draft the plan of attack

Current situation

Desired situation

Complete the observations

Current situation

•Matrix

•Setups video

•Etc...


Implement one-piece flow

Analyze

•Identify the products

•Identify the customers

•Understand and describe the Processes

–part/process matrix

–Flow diagram

–analysis of the Process Flow

–Spaghetti diagrams

–TAKT time


Introduction

Wastes elimination

Kaizen Methodology






Complimentary Continuous Improvement Approaches

Kaizen

6 Sigma Lean Site


Category

of Waste

Type of

Waste

Waste

Reduction

Approach

Methods Focus Points Principle

Worksheets

Desired

Results

People

Processing

Motion

Waiting

Workplace

Management

Standard Work

Workplace

Organization

Kaizen

Layout

Labeling

Tools/parts

arrangement

Work Instructions

Efficiency

Skills training

TAKT time

Shift meetings

cell/area teams

Visual displays

Standard Work Sheet

(SWS)

Time Observation

Form

Standard Work

Combination Sheet

(SWCS)

Work Load Balancing

Sheet (WLBS)

Work Load Balancing

Sheet

Kaizen Target Sheet

Kaizen Action Sheet

High

efficiency

and output

work areas

that are safe

QuantityInventory

Making too

much

Moving

things

Just in Time

Kanban

Leveling

SMED

Preventive

Maintenance

Work balance

WIP location &

amount

Kanban types

Lot sizes

Changeover analysis

TPM analysis

SWS

SWCS

WLBS

Kanbans

Production Capacity

by Process

TPM Scheduling

Sheet

What You

Need

When You

Need It

Quality

Fixing defects Error

Proofing

Detection

Warning

Prediction

Prevention

Automated

assistance

Fixture

modifications

Successive checks

Photocells,

templates, etc.

Cross training

SWCS

Error Proofing Action

Sheet

Error Proofing “To

Do” List

Skills Training Matrix

Desired

Quality

Performance Excellence Manufacturing


Sales per employee

increased 155%

Labor costs

reduced 75%

100% of hourly

employees on self

directed work

teams

Inventory reduced

by 70%

515 Inventory

turns per year

100% customer

retention rate

Annual labor

turnover less than

1%

1% worker

absentee rate

ROA increased to

55%

Productivity

increased by 208%

Worker developed

HR policies

0.4 Lost workday

rate per 100

employees

On-time or free

delivery guarantee

Scrap and rework

decreased by 65%

Warranty costs of

0.36 percent of

sales

1997 Plant of the Year

Industry Week


Introduction

Wastes elimination

Kaizen Methodology






Kaizen/CPI

A STRATEGY FOR PERFORMANCE

EXCELLENCE

Kaizen Project: Corporate Quality

ISO Hardcopy Procedures Elimination

an Office Process Improvement Example


Kaizen Project: ISO Hardcopy Procedures Elimination

an Office Process Example

Background:

ISO Policy and Procedures are currently on the company web site.

Hardcopy sets of policy and procedures are also mailed to 95 remote

facilities and distributed to 40 locations within Corporate

Headquarters.

Kaizen Project:

Eliminate hardcopy distribution of policy and procedure manuals for

all corporate headquarters locations and all other facilities having

company web site access.


Current Process:

1. Outside vendor prints 135 sets of

ISO Policy & Procedures manuals: $3,000

2. 95 sets of manuals mailed (Fed Ex) to facilities

beyond Corporate Headquarters. $18 /set x 95 sets = 1,710

$4,710

updated and distributed twice per year x 2

$9,420



Action Plan:

1. Survey all corporate facilities to determine those having Web site

access. (1/7/00)

2. Remove from hardcopy distribution list those facilities having web

site access. (1/10/00)

3. E-mail bulletin all facilities having web site access of

discontinuance of hardcopy manuals distribution, and to use web

site instead. (prior to planned March, 2000 distribution)


Improved Process:

1. Outside vendor prints 40 sets of

ISO Policy & Procedures manuals: $889

(for facilities not able to access web site procedures

and eight extra sets)

2. 32 sets of manuals mailed (Fed Ex) to facilities

beyond Corporate Headquarters. $18 /set x 32 sets = 576

$1,465

updated twice per year x 2 = $2,930

(current cost) $9, 420 - (improved cost) $2,930

Kaizen project annual cost savings: = $6,490



Ongoing Continuous Improvement

Action Plan:

1. Establish timetable for implementation of website access for

facilities not presently able to view electronic procedures. (TBD)

2. Remove from hardcopy distribution list these facilities once web

site access is established. (TBD)

3. E-mail bulletin latest facilities having web site access of

discontinuance of hardcopy manuals distribution, and to use web

site instead. (TBD)


Kaizen/CPI

A STRATEGY FOR PERFORMANCE

EXCELLENCE

Kaizen Project:

Color Key - Optimize Press Capability

a Shopfloor Process Improvement example


Color Key - Optimize Press Capability

Dec. 6 - 10, 1999

Team members: Herkie Hill (Team Leader)

Derick Fultz (Sub- team leader)

Lee Salsberry

Carolyn Oliver

Phylis Dancy

Marvin Bell

Lueontine Smith

John Whittington

Dave Hensley (Consultant)

Hosea Foster

Objectives:

Reduce WIP by 70%

Improve throughput by 40%

Reduce backlog by 50%

Reduce leadtime by 5 days

Identify (5) 5S improvements

Train operators on all shifts

Work hard and have fun


Kaizen Project: Color Key Press Optimization

a Manufacturing Process Example

Background

Color Key area currently has 14 days of WIP in front of the 4

press operations. The presses are operated on 3 shifts, 5 days per week. The lead

time for these products is approximately 4 weeks.

Kaizen Project

Optimize press capability and reduce lead time by 5 days.


Current Process of S. Tai Press:

1. Current production average = 118 pcs/hr for a cost of .09 cents per piece

2. Total cost anualized per customer demand = $129,168

Gross Vs Realization Capacity Analysis

S. Tai Dec 99

66

15

60

90

990

210Tool Change

Clean Up

Breaks

Lunch

Run Time

Unaccounted Time



1. Improve set up reduction techniques

2. Introduce short cycle scheduling with 2 day window

3. Locate production management board by press

4. Organize WIP by tube size

Action plan:


SET UP TIMESMachine: S. Tai Start Date: 12/8

Target: 25 % Improvement

1211:38

27% Improvement

Min

ute

s

adjustment

8:308

8:23 adjustment

5:044

remove

& install

tooling

established external check list

& created tooling cart for preset up

1 2

Observation Number

remove

& install

tooling


Improved Process of S. Tai Press:

1. Improved production average = 179 pcs/hr for a cost of .06 cents per piece

2. Total anualized per customer demand = $86,112

WIP reduced .5 day

Kaizen Project annual cost savings : = $43,056

S. TAI Realization Capacity Analysis

Jan 0024

15

60

90

1119

132Tool Change

Clean Up

Breaks

Lunch

Run Time

Unaccounted Time



Ongoing Continuous Improvement

Action Plan:

1. Create daily review panel of pacer board to help resolve daily problems

in a timely manner. Include maintenance, planning, supervisors and KPO. (1/24)

2. Install 2nd counter on press to help maintain daily output numbers. (12/31)

3. Locate rack near press to organize parts by tube size. (1/14)

4. Add yellow and red lights to press for visual notice of downtime. (12/14)

5. Design & implement 3 move die exchange. (1/31)


A Key Strategy In Pursuit

Of World Class

Performance

kaizen - strategy for performance excellence

Documents

impact of process improvement

process variation

process kaizen projects

process potential goals

focus resources

improvement control

needs management

supply management