kaizen - strategy for performance excellence
DESCRIPTION
IKA SYAMSAUL HUDA MZTRANSCRIPT
2000, QualityToolBox.com, LLC, all rights reserved1
A STRATEGY FOR
PERFORMANCE
EXCELLENCE
2000, QualityToolBox.com, LLC, all rights reserved2
Executive Overview
Participant manual
Tools WorkbookKnowledge
Breakthrough
Lecture notes Lecture notes
Performance Excellence Series
Training Module Elements
2000, QualityToolBox.com, LLC, all rights reserved3
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
2000, QualityToolBox.com, LLC, all rights reserved4
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
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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
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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
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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
2000, QualityToolBox.com, LLC, all rights reserved8
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
2000, QualityToolBox.com, LLC, all rights reserved9
Performance Excellence:
Expanding the Strategy through Kaizen
Introduction
Wastes elimination
Kaizen Methodology
Integrated Improvement Strategy
Kaizen Project Examples
2000, QualityToolBox.com, LLC, all rights reserved10
Continuous Improvement
Is the continuous
elimination of waste
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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.
+
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What is Waste?
Everything we make that
costs something without
adding value to the product
Our objective > Value added = Maximum
Non-Value Added = Minimum
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The Nine types of waste
Overproduction
Delays (waiting time)
Transportation
Process
Inventories
Motions
Defective products
Untapped resources
Misused resources
9
Wastes
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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
2000, QualityToolBox.com, LLC, all rights reserved15
Introduction
Wastes elimination
Kaizen Methodology
Integrated Improvement Strategy
Kaizen Project Examples
Performance Excellence:
Expanding the Strategy through Kaizen
2000, QualityToolBox.com, LLC, all rights reserved16
Kaizen Methodology Kaizen improvement
The mandate
One-piece flow
SMED
Visual controls
Kanban
Workplace organization
Standard work
Quality every time
Total productive maintenance
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Kaizen Improvement is a Team
Multi-disciplinary
Specific mandate
Short delays
Responsible teams
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Kaizen Improvement
is composed of 4 steps
To Evaluate
To Decide
To Act
To Measure
E
D
A
M
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Kaizen Improvement
is continuous improvement
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Kaizen Improvement
is NOW !!!
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To Evaluate
You can only improve things
you know well.
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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
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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
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To Act
Communicate
operators,
other employees from the area
other people servicing the area
Implement decisions
Control their execution
E
D
A
M
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To Measure
Compare the results in relation
to the objectives.
Resume EDAM
E
D
A
M
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Become familiar with the Mandate
Draft the plan of attack
Current situation
Desired situation
Complete the observations
Current situation
•Matrix
•Setups video
•Etc...
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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
2000, QualityToolBox.com, LLC, all rights reserved28
Introduction
Wastes elimination
Kaizen Methodology
Integrated Improvement Strategy
Kaizen Project Examples
Performance Excellence:
Expanding the Strategy through Kaizen
2000, QualityToolBox.com, LLC, all rights reserved29
Complimentary Continuous Improvement Approaches
Kaizen
6 Sigma Lean Site
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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
2000, QualityToolBox.com, LLC, all rights reserved31
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
2000, QualityToolBox.com, LLC, all rights reserved32
Introduction
Wastes elimination
Kaizen Methodology
Integrated Improvement Strategy
Kaizen Project Examples
Performance Excellence:
Expanding the Strategy through Kaizen
2000, QualityToolBox.com, LLC, all rights reserved33
Kaizen/CPI
A STRATEGY FOR PERFORMANCE
EXCELLENCE
Kaizen Project: Corporate Quality
ISO Hardcopy Procedures Elimination
an Office Process Improvement Example
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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.
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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
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Kaizen Project: ISO Hardcopy Procedures Elimination
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)
2000, QualityToolBox.com, LLC, all rights reserved37
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
2000, QualityToolBox.com, LLC, all rights reserved38
Kaizen Project: ISO Hardcopy Procedures Elimination
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)
2000, QualityToolBox.com, LLC, all rights reserved39
Kaizen/CPI
A STRATEGY FOR PERFORMANCE
EXCELLENCE
Kaizen Project:
Color Key - Optimize Press Capability
a Shopfloor Process Improvement example
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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
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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.
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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
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Kaizen Project: Color Key Press Optimization
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:
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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
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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
2000, QualityToolBox.com, LLC, all rights reserved46
Kaizen Project: Color Key Press Optimization
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)
2000, QualityToolBox.com, LLC, all rights reserved47
A Key Strategy In Pursuit
Of World Class
Performance