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OBEYA OPERATIONSOBEYA OPERATIONS

Tearing Down the WallsTearing Down the Wallsto See Problems and to See Problems and 

Achieve Breakthrough PerformanceAchieve Breakthrough Performance

Sam MacPherson, Co-Founder, The Lean Leadership Academy™

(910) 217(910) 217--LEANLEAN

http://www.leanleadershipacademy.com/contact/

http://www.leanleadershipacademy.com

My Background with Obeya’sThe Green Beret Way

Because of the complexity of Special Operations missions, the need for Situational Awareness, Coordination, and Collaboration, Special Operations Units have been using the Obeya approach for years. Our Obeya are known as Operations Centers.

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Obeya a Way of LifeObeya a Way of LifeChief of  Combat Readiness BranchChief of  Combat Readiness Branch

Chief of Exercise BranchChief of Exercise BranchChief of Asymmetric Warfare PlanningChief of Asymmetric Warfare Planning

Director of Future Special Operations Plans Director of Future Special Operations Plans –– Task Force DaggerTask Force DaggerActing Chief of Staff, Training Branch US Army Special Forces CommandActing Chief of Staff, Training Branch US Army Special Forces Command

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What is an Obeya?What is an Obeya?

A Room with a A Room with a ViewView

Toyota Thailand

• First time visitors to Toyota’s Corporate HQ in Japan are surprised at the large open office areas and the lack of cubicles isolationism. 

• The Obeya, or “The Big Room”, dates back to its early days of Toyota, in Japan.

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The Universe’s Most FamousThe Universe’s Most FamousObeyaObeya

The bridge of the Starship Enterpriseis an Obeya

NASA’s Johnson Control CenterNASA’s Johnson Control Centeraka “Houston”aka “Houston”

Another Famous Obeya

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The Vonage The Vonage “Generosity Officer”“Generosity Officer”on Breaking Down Wallson Breaking Down Walls

“Walls separate people Jose’!”Walls separate people, Jose !

Obeya “No Walls” Concept even in Popular Culture

Leadership Leadership at the Source at the Source 

“TPS style improvement depends on the creative efforts of people led by managers and work teamefforts of people led by managers and work team leaders with extreme attention to detail in the execution of daily management techniques.” 

“Having (a) proper awareness of problems and an extremely low tolerance for the current condition

i i d ”is a proper attitude.”

‐Isao Kato: Father of Standardized Work and Toyota’s Supervisor Leadership Development Program

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There is Always Room for KaizenThere is Always Room for KaizenIn Coordination!In Coordination!

• The Theory behind Obeya is based on a simple idea:“Dedicate Space and Time to Coordination and Problem Solving thenDedicate Space and Time to Coordination and Problem‐Solving, then 

organizational barriers will be minimized.” 

• The ability to maintain Proper Problem Awareness in Real‐time,– listen to Team‐member concerns, 

– Collaborate to make discoveries, resolve problems together, accelerate leader and team‐member developmentteam member development

– We will reach our full potential, which is critical to a Lean Organization

• The Obeya promotes coordination, strategy and flexibility while leveraging the expertise and support of teammates from diverse areas.

• The Result: Effective solutions and actions that can be developed and implemented quickly.

ObeyaObeya Must Support Must Support Just in Time and JidokaJust in Time and Jidoka

‘I think the ideal situation of the Obeya should be the full integration of People and Data; it mustthe full integration of People and Data; it must  mimics the flow of the process. 

The Obeya utilizes the latest technology of human interface communication to promote ‘Just in Time’ in human processed information with Jidoka’s “Zero Defects Passed” considerations.’

Casey Ng

Retired General Manager

Toyota Motor  Manufacturing Australia

Obeya Leader 

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Why Establish an Obeya?Why Establish an Obeya?

TMCTMCGl b l ObGl b l Ob

Global ObeyaWhen developing a new vehicle, managers responsible for decision making in design, production engineering, and manufacturing gather in one place to shorten 

Types ofTypes ofObeyaObeya

Toyota University

Obeya for Every LevelObeya for Every Level

Global ObeyaGlobal Obeya

Business 

offices)

Business Obeya(Executive offices)Business Process Business Process 

Layout ObeyaLayout ObeyaCentralized data collection, prioritizing and action planning 

plead‐time through real‐time communications & simultaneous engineering

Business Obeya

Business Business Obeya(Mfg.)

Business Business Obeya(Sales)

Global Camry LaunchTMM Australia

Toyota University

Camry Global LaunchToyota Mfg. Australia

FocusObeya Focus

Obeya

Focus ObeyaFocus Obeya Project War 

Rooms  SQDC/PDCA A3 Problem 

Solving Jishuken rooms

FocusObeya

Obeya(Engineering)

Toyota University

Toyota Jishuken Problem Study Team

TIEM

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What Most Obeya Have in CommonWhat Most Obeya Have in Common

Main Board(VP level) • Performance

• Gaps Only 3 layers 

for required approval

Clear Objectives

Targets

ProjectObeya

Gaps

• Solution COAs

• Recommend‐ations

• Issues i i

Metrics

Connections

Team AObeya

Team BObeya

Team CObeya

requiring decisions (Only Two per team)

Large Complex ObeyaLarge Complex Obeya

• Large Open Office areas 

• Accommodates dozens of team‐members

f

Toyota Motor Sales and Finance

• Manufacturing Operations

• Sales and Finance

• Design Engineering

• Manufacturing Engineering

Potential Issues:

• Risks being too formal and rigid

• Interoperability of IT between operations

• Sensory overload

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Obeya in Sales OperationsObeya in Sales Operations• Introduced by TMS VP Hiroaki 

Sunakawa, “Can the Obeya concept work in Sales in the United States?’

• Follows a “Customer Focused Plan‐Do‐Check‐Act Cycle.

• The Obeya is organized to reflect the ownership lifecycle, beginning with the Voice of the Customer

• Reflects the Customer’s ExperienceToyota Motor Sales Thailand

ShoppingShopping

Toyota Motor Sales - NA

Product Design & Quality

Product Design & Quality

Sales and FinancingSales and Financing

Vehicle DeliveryVehicle Delivery

Service Warranty, 

Maintenance

Service Warranty, 

MaintenanceVoice of

TheCustomer

Obeya in Lean Product Obeya in Lean Product Development and DesignDevelopment and Design

• Collaboration here is critical

• Most projects are Front loaded

• At Toyota, Concurrent Planning does not allow for Delay – most IT tools not helpful

• Room Layout Follows a (CAP‐DO) flow

Check – Adjust – Plan – Do Cycle

• Visual Process Flow for Information

• Identify bottle necks and collaborate to implement Countermeasures

U P t it’ ith f l t li i t• Uses Post‐it’s with few colors to eliminate confusion and ensure meaning understood

• Allow only two issues a week per team –potential solution must accompany issues

• Ambiguity is not allowed in this type of Obeya

Red or Green; No Amber

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Product Design/Design Review Product Design/Design Review Process Layout ModelProcess Layout Model

SmallSmall‐‐Focused ObeyaFocused Obeya• Focused with a defined purpose

• Specific Projects

• Jishuken or Team room

• Problem analysis away from noisy gemba environment

• Limits group size by design

• Economical

• Closed rooms melt down barriers

• Encourages idea contribution

Gap Card Suggestions

Anyone in the Toyota organization can enter the Obeya  and contribute a suggestion by filling out a red card or red Post‐it ® note.  The purpose it to accept anyone’s input.

An obeya or department leader is assigned to address the Gap and only when the gap is closed is the Gap Card taken down from the Obeya wall. 

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Focused Obeya PDCA & Focused Obeya PDCA & Problem Solving Process LayoutProblem Solving Process Layout

What Metrics Should Be in Obeya?What Metrics Should Be in Obeya?Only the Most ImportantOnly the Most Important

• Set Targets “State what you really need to accomplish without prejudice”accomplish without prejudice

• Prioritize Measures 

• Top Five/Hot Five: 

“If fail these measures will you will be fired?” 

T k hi T k‐Takashi Tanaka

• Target – How can we? What can we do?

• Tie in Company Hoshin to Plant Hoshin to Shop‐floor Hoshin: Set SQDCPM KPI

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Establishing anEstablishing anObeya forObeya for

Operations and LogisticsOperations and LogisticsOperations and LogisticsOperations and Logistics

How to Build Your “Big Room”How to Build Your “Big Room”A Phased ImplementationA Phased Implementation

Approach for Your House of LeanApproach for Your House of Lean

Phase 5 Obeya

JustJust--InIn--TimeTime“Right part, right

amount, right place, right time”

JidokaJidoka“Intelligent Automation”

“Quality from the Source”(In-station Process Control)

“Make Each ProcessThe Customer”

“Make Problems Visible”

“Stop and notify about Abnormalities”“Error-Proof”

“Separate Man fromM hi ”

Takt-time:Produce at the Pace of

Sales“Continuous Flow”

“Pull System”In sequence of demandSmall lot sizes, frequent

Change-overs

Obtain a Profit and Grow by Increasing Customer ValueThrough the Elimination of Waste, Burden, and Fluctuation

Highest Quality - Lowest Cost - Shortest Lead Time

Phase 3 Obeya• Full SQDCPM• Organizational 

Problem Solving• A3 Management

Phase 2 Obeya

Phase 4 Obeya• Deployment Focus• TPS Integration • External 

Connections• Full SQDCPM

Phase 5 Obeya• Full Hoshin 

Integration• Sales Obeya• Engineering 

Obeya

Machine”

Leveled Production (heijunka) Kaizen Standardization

Stability and Reliability in Man, Machine, Methods, Materials

Change overs

Phase 1 Obeya• Process Stability• Work Standards• Schedule 

AttainmentFocus

A3 Management• Flow Focus• Standardized 

Work• TPM Integration• Level Production

Start with Visual Management foreach level of the House of Lean.

As you mature each level of “The House,” the nature of the Obeya

Evolves and Transforms.

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Operations CenterOperations Center

Gemba Kanri Plans For Zones and Value Streams 

TPM Advan

cement P

la( g )

Quality Advancement Plan(Do it Right) 

Voice of the CustomerQuality Delivery Price Service Innovation Growth

Safety Quality Delivery Cost Productivity Morale 

Dashboard Hoshin , Kojo, and  Baby A3 

Plans g

d Production 

Planning

10‐10‐10 Day M

aster 

Month Sched

ule

ee day out 

n Sched

ule

Obeya ModelObeya Model

(g

)Equipmen

t Relia

(Fix it Righ

t)an

 (

)Joint Sales an

d(JSP) Team

 ))

30/60/90 Day 

Master  Sched

ule

10 day thre

Breakdown

) bility

) 

Current Operations Production Status Board“Yamazumi Board” 

Management Cadence  Kami Shibai Visual Control Board 

Dispatcher Operations 

g(

)Counterm

easure 

Progression  (PDCA)

ANDON

Status

ANDON

Status

The Truth Telling RoomThe Truth Telling Room Open Visual meeting space and Office 

Environment adjacent to senior executives desks

No Walls ‐ Direct Communications between customer service, production control lean supply chain/materialscontrol, lean supply chain/materials management/production engineering

PDCA Flow

Visual Connection to Hoshin

Production Status Board

Integrated with Andon System

Break Down Maintenance/Quality Dispatcher Systemp y

Extreme Problem Awareness and Urgency

Strong Leader in the  Obeya Director

Cross‐functional Leadership Engagement

Visual 30‐60‐90 Day JIT Demand Planning

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Operations Center Obeya in ActionOperations Center Obeya in Action

Maintenance MgrMaintenance MgrAnd OperationsAnd Operations

Plant Plant

Center DirectorCenter DirectorAndon Status AwarenessAndon Status Awareness

Plant Plant Operations Manger Discussing Hourly Operations Manger Discussing Hourly

Production Status Update by Group Leader Production Status Update by Group Leader ith V l St M t Obith V l St M t ObQuality Manger And Quality Manger And

Scheduler at the GembaScheduler at the Gemba

with Value Stream Managers at Obeya with Value Stream Managers at Obeya Production Status BoardProduction Status Board

Single Minute Breakdown Single Minute Breakdown Response Team PDCA’s Red Response Team PDCA’s Red Zone response performanceZone response performance

Obeya Team conducts Obeya Team conducts PDCA daily to improve PDCA daily to improve

Obeya OperationsObeya Operations

Obeya Team prepares Obeya Team prepares to Go to the Gemba forto Go to the Gemba for

Red Zone Red Zone ConditionCondition

Example of Operations Obeya LayoutExample of Operations Obeya Layout

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Castle Metals AerospaceCastle Metals Aerospace

Paramount Operations

Los Angeles, CA

LEAN LEADERSHIPLEAN LEADERSHIPACADEMYACADEMY

Logistics ObeyaLogistics Obeya

Castle Metals Aerospace Castle Metals Aerospace 

Los Angeles Los Angeles 

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Background 

M f f Ai f E i P V i ‘A• Manufacturer of Aircraft Engine Parts, Various ‘Aero Structure’ Components, Aircraft ‘Complex Subsystem’Components and Distributor of Exotic Alloys / Specialty Metals  

• Castle Metals Aerospace Began ‘Lean’ Journey in January 2012

• Los Angeles was chosen as “Pilot Facility”Los Angeles was chosen as  Pilot Facility• Distribution throughout Western U.S., Canada, Mexico, and Asia

• Compelling Need for ‘Cost Basis’ and Customer Service Improvement in Key Performance Metrics

Castle’s Business Need for Implementing Castle’s Business Need for Implementing Obeya in Sales, Warehouse, Traffic, and Obeya in Sales, Warehouse, Traffic, and 

ManufacturingManufacturing

• Critical ‘End Use’ applications of our products:– Commercial & Business Airplanes: 737, 747, 767, 787, A320, p , , , , ,A350, G150, G450, G550, G650 

– Defense: F‐35 JSF, F‐15, F‐18, C‐17, C‐130, Apache III – Space:  Delta IV, Atlas V, Falcon, Dragon, SLS, New Shepard  – Various other DoD applications 

• ‘‐0‐ Defect’ Tolerance & 100% OTD of Parts and Product is Required by Customer Base

h d d• High inventory increasing cost and reducing operating profit and response time.

• Pressure to relocate from Southern California toMexico to improve responsiveness and customer service

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Castle’s Business Need for Implementing Castle’s Business Need for Implementing Obeya in Sales, Warehouse, Traffic, and Obeya in Sales, Warehouse, Traffic, and 

ManufacturingManufacturing

44‐‐6 Hour6 HourYellow ZoneYellow Zone

Mix products delivered to multiple locations along fixed or flexible route on schedule or on demand multiple times per

2 Hour2 HourGreen ZoneGreen Zone

Mix products delivered to multiple sites along fixed or flexible route, on schedule or on demand, multiple times per 

day.  Can deliver hourly. 

on demand multiple times per day. Delivers twice per shift 

Case Study DiscussionCase Study Discussion

Mills• Batch production• Mill batch

minimums• Weekly/monthly

deliveries regardless of demand

• Forecast

Castle Metals Aerospace• Sales, Warehouse, and

Fabrication operations• Batch production• 1.7 Inventory turns• Low operating capital• High conveyance related

cost• Large warehouse storing

Customers• Sub-assembly Production

based in Mexico for lower labor cost

• Customs, transportation cost• Ship to U.S. and Canada for • Mill batch minimums• Weekly deliveries regardless

production use generally 21• Forecast • Large warehouse storing mostly “Air”

• Weekly deliveries• Pressure to relocate to

Mexico to cut cost and be more responsive

production use – generally 21-30 days material on hand

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Leading the implementation of Leading the implementation of JustJust‐‐InIn‐‐Time requires Commitment from Time requires Commitment from 

Executive and Senior ManagementExecutive and Senior Management

Aerospace CU President James Callan. (from front left to right), General Manager Bill Levealle, the Director, Director of Finance, and Director of Strategic Accounts develop their Just‐in‐Time Strategy for their largest distribution customers as 

a pilot for Just‐in‐Time

Sales, Warehouse and Traffic Sales, Warehouse and Traffic Obeya “No Cubicles Walls” EnvironmentObeya “No Cubicles Walls” Environment

“Information and Material Must Flow”, Castle created a “No Cubicles or Walls” Obeya environment which reduced waste in “Digital Lead‐time,” Improved

Face‐to‐Face Communication, Problem Awareness and Team‐member Engagement in Sales, Administrative, Engineering, Production Planning, Manufacturing and 

Distribution Operations

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Obeya Management ofObeya Management ofJIT & Supply Chain ConnectivityJIT & Supply Chain Connectivity

Signals and ConnectionsSignals and ConnectionsBetweenBetween

Signals and Connections BetweenSignals and Connections BetweenCustomers and CastleCustomers and Castle

Castle and MillsCastle and Mills

Hearty Triangle Kanban

Customers and CastleCustomers and Castle

A Combination of ReplenishmentKanban and Lean Material HandlingCarts/Devices Trigger the Customers Need for Materials from Castle. When empty carts are returned; full carts are sent JIT Kanban is swapped at Supermarket Shadow box ensure the right part based on fit Lean Material Kitting Carts

delivers the absolutely correct materials to Castle’s internal

processing or external customers while taking up the

exact needed footprint

Lean Material Transport Finished Goods SupermarketHearty Triangle Kanban

Are used to trigger replenishment from the Steel Mills

Lean Material Transport Carts moves all the way through the

supply change and back to Castle

Kanban attached to Customizable Extruded Aluminum Carts are right-sized for each part such

as these Aircraft Doors, loaded on “Milk Run” Trucks and travel cross-country from Virginia to

California directly “line-side” to the customers bl

Carts carry enough material to support two hours worth of material

Designed to eliminate the need forExpensive Lifts, cranes, or

retrieval system

Castle Metals Aerospace ObeyaCastle Metals Aerospace Obeya“Management Cadence”“Management Cadence”

6:45 am  ‘Hot Start’ Meeting

“No Cold Starts!”

9:20 am:  JSP Meeting

11:30 am: ‘Mid Day’ Huddle

“On Track to Target?”

3:00 pm: ‘Plan For Every Part” MeetingMeeting

4:00 pm: End of Day 

Schedule Attainment and System PDCA Review Briefing

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Daily Demand Planning Review Daily Demand Planning Review (Joint Sales and Production Team Meeting)(Joint Sales and Production Team Meeting)Monthly Demand for 30‐60‐90 Day PlanBroken Down into 3 10 Day JIT PlanBroken Down into 3‐10 Day JIT Plan

What We Learned SalesWhat We Learned Sales

• Salespeople measured onMonthly All I id S l l h T

Before: After:• Salespeople measured onMonthly 

& Quarterly Basis • Sales “Pipeline” by Sales Person 

reviewed and  Submitted Monthly with Wins & Losses reviewed

• Monthly Conference Calls with Remote Salespeople only

• Institutional walls between Outside Sales, Inside Sales, and Operations

• All Inside Salespeople have Two Hour Takt Pitch for Order Entry. 

• Sales operates like the production floor with Production Control Plans

• Andon system brings immediate attention and response to any problem in information flow

• “Top 5” Progress of “Pipeline” Opportunities to Improve through Team KaizenTeam Kaizen 

• Increased customer response• Increased Top‐Line Revenue Growth 

12%• Improved connection between Sales 

and Operations

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JustJust‐‐inin‐‐Time Operations and Obeya Time Operations and Obeya Management =   Breakthrough Performance Management =   Breakthrough Performance 

ImprovementImprovement & Sustainability& Sustainability

What We LearnedWhat We Learned

P i l M d Shift H l P d ti R d

Before: After:• Previously: Measured  Shift 

Production only.• Did not Monitor the Use of 

Routine ‘Consumables’ in Production.

• Applauded: ‘Over‐Production’ when it infrequently occurred 

• Hourly Production Records by ‘Mfg. Zone’ increasedUnderstanding of  Production Rates per Shift and Variances

• Better Utilization of Resources

• Much better grasp of f q y g pInternal ‘Costs’ per shift

• Capacity, O/A Increased• WIP, Defects, and ‘Starving’ 

& ‘Waiting’ decreased

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Reflections on Implementing JITReflections on Implementing JITIn Castle’s Distribution SystemIn Castle’s Distribution System

• JIT Requires Daily Commitment & Diligence from Management

– Requires GM, Regional Operations Manager, Area Manager, Group Leader, Team Leader have “Deep” Job Knowledge 

• Mechanism for ‘Plant Shop Floor’ Problem Identification and Problem Resolution work just as well in the front and back office.the front and back office. 

– Made Problems Visible Addressed all Problems that may arise 

– Reduced ‘Un‐Planned’ Downtime by 71%

– Reduced ‘Key Value Stream’ Cycle Time from Order to Cash by 62% initially, with ongoing improvements.

– Increased existing capacity by 60%

– Reduced overall footprint by 60%

• Able to sale forklifts and cranes no longer needed as a result of transportation waste elimination 

• 12% Top Line Growth with New Project related to improved customer service12% Top Line Growth with New Project related to improved customer service

• Close to $1 million in cost savings per value‐stream of 4 Value Streams

• Increased Operating Capital (60% accts. Rec. before acct. payable) using A‐B‐C demand planning logic

• Suppliers (The Mills) agreed to deliver daily based on demand signals (Kanban) vs. weekly forecast and mill minimums; decreasing expenditures

• Successfully integrated with customer supply chain through “Lean Material Flow Kaizen Event.” Delivery of Just in Time Inventory Levels (one‐two days cycle stock, only, everyday)

• Builds Teamwork and Improves ‘Associate’ Relations reflected by Vastly improved ‘Employee Engagement’ Survey Results

“Happy” Faces on Castles Aerospace “Happy” Faces on Castles Aerospace Customers!!Customers!!

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Timken Aerospace Bearings

Shiloh Plant

Rutherfordton, NC

LEAN LEADERSHIPLEAN LEADERSHIPACADEMYACADEMY

Why is this Timken Operations Why is this Timken Operations Leadership Team Smiling?Leadership Team Smiling?

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Timken ShilohTimken Shiloh“Obeya Management Cadence”“Obeya Management Cadence”

• 7:45 am  ‘Plant Fast Response Meeting’Response Meeting

• 10 ‐11 am Line PDCA’s

• 11‐12 am  Critical Point Gemba walks

• 3:30 pm   JSP review

• 7‐8 pm Line PDCA’s7 8 pm Line PDCA s

• Bi‐Monthly Process Reviews

• Monthly Hoshin/Kojo Kanri reviews

Connecting the Andon Connecting the Andon System, Dispatcher &System, Dispatcher &

Operations Operations ObeyaObeyaDispatcher locatedDispatcher located

TeamTeam--membermemberRecognizesRecognizesProblem andProblem andPulls AndonPulls Andon

Cord andCord andResponseResponse

Dispatcher locatedDispatcher locatedin Obeyain Obeya

Line Stop ZoneLine Stop ZoneAwarenessAwareness

Dispatcher “Data minesDispatcher “Data minesDispatcher “Data minesDispatcher “Data mines

Single Minute Response TeamSingle Minute Response TeamUses SMED approach to Uses SMED approach to

Return to Operation in less thanReturn to Operation in less than10 minutes10 minutes

Single Minute Response TeamSingle Minute Response TeamUses SMED approach to Uses SMED approach to

Return to Operation in less thanReturn to Operation in less than10 minutes10 minutes

Andon BoardAndon BoardLights UpLights Up

Music Music PlaysPlays

Notifying Notifying Team LeaderTeam Leader

Dispatcher Data minesDispatcher Data minesRecent performance issuesRecent performance issuesFor the equipment & areaFor the equipment & areaThat initiated Andon andThat initiated Andon and

Reports findings to team leadersReports findings to team leadersSingle Minute Response TeamSingle Minute Response Team

Dispatcher Data minesDispatcher Data minesRecent performance issuesRecent performance issuesFor the equipment & areaFor the equipment & areaThat initiated Andon andThat initiated Andon and

Reports findings to team leadersReports findings to team leadersSingle Minute Response TeamSingle Minute Response Team

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Proper Problem Awareness & Fast Proper Problem Awareness & Fast Response to ProblemsResponse to Problems

Line StopAwareness

ClockAndon Signal Andon Signal

StationStationEven for Lean Even for Lean AndonAndon

Andon LightAndon Light

WorkstationWorkstationAndon and Andon and

Downtime ClockDowntime Clock

Office, Traffic, and Office, Traffic, and Engineering IssuesEngineering Issues

SMaRTSMaRTTeam Team

DispatcherDispatcherLocated in Located in

ObeyaObeya

Obeya AndonObeya AndonAwarenessAwareness

AndonAndonBoardBoard

Andon Andon LightLightSwitchSwitch

Zone Andon Signal Zone Andon Signal StationStation

With Status Lights and With Status Lights and M iM i

Downtime ClockDowntime ClockLocated at Cell Located at Cell

PacemakerPacemaker

yy

AndonAndonBoardBoard

Andon System and Zone ControlAndon System and Zone ControlTimken Shiloh, Rutherfordton, NCTimken Shiloh, Rutherfordton, NC

3. Audible Alarm

4. Team Leader Response

5. Op Center Communication

7 Structure

2. Andon System Visual Problem Identification

6. Single Minute Response TeamSMED approach to SQDP BreakdownProblems

1. Notification of Problem

7.StructuredProblem Solving Process

8. Data Uses/Collection/Mining

9. Data Analysis

10. Problem prevention re-occurrence

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Before >240 Minute Chain of Response

After<60 Minute Takt‐based Chain of Response

Team Leader Acknowledgement 

and Decision, within minutes, on Problems that 

interrupt the Flowinterrupt the Flow of Quality, 

Productivity, On‐time Delivery, and 

Safety

51Highly Defined Response Timelines to Safety, Quality, Delivery and Productivity IssuesResults in 75% Improvement Response time to Problems

What We Learned in ‘Obeya’ What We Learned in ‘Obeya’ Operations & ‘Zone Control’Operations & ‘Zone Control’

H l h i 4 h

Before: After:• Help chain was 4 hours, 

loosely followed

• Rarely produced objective results

• Did not realize deviations from plan in real time d

• Help chain 1 hour with rigid operator and support compliance

• Documented processes driving A3 thinking and prevention reoccurrence

reducing opportunity to drive mitigation and corrective action

• Hour by hour tracking and reporting driving action at the time and point of occurrence

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Reflections on ImplementingReflections on ImplementingObeya & Zone ControlObeya & Zone Control

• Implementation of Andon system. R i d h i lt thi ki d di i li t ll– Required a change in culture, thinking and discipline at all levels of the organization

– Absolute support top down– Within 60 days, achieved 

• 29% improvement in output• 17% improvement in productivity • 12% improvement in schedule attainment and on time delivery.

• Improved associate engagement and morale• Continue to build and improve problem solving skills across 

the organization– Tendency to revert back to what we are good at, used to, quick fix 

versus permanent, robust repair solutions

Ex. Timken Production ImprovementEx. Timken Production ImprovementIncreased by 200+%Increased by 200+%

While Standard Labor Value Earned Increased 25%While Standard Labor Value Earned Increased 25%100% Daily Schedule100% Daily Schedule

Example Production Per Day

16881808

1504

1745

2552

2103 2131

2390

2664 2629 26662490

3103

1500

2000

2500

3000

3500

s P

er D

ay MT

Goal

Linear (MT)

Pilot

54

1504

0

500

1000

1500

2010 Jan Feb March April May June July Aug Sept Oct Nov Dec

Pcs

Month

( )

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“If a problem is left unsolved and the 

Why Must All Why Must All Problems be made Visual, Problems be made Visual, Known, Known, and Communicated?and Communicated?

supervisor is uninformed, neither Kaizen nor Cost Reduction can be applied.  Once the problem is clear, Kaizen becomes possible.”

Taiichi Ohno,

Former Executive Vice President

Of Toyota Motor Corporation