Shanghai

Nov 14, 2013

Lin Huiqi

Lean production case study in China

Lean & TPM implementation KSF for European companies in China

- Winning and Growing in China -

1 C 2013

Lean production towards modern manufacturing industry

Market/Competition

Pressure

Local costs goes up…

Customer diversity…

2 C 2013

Improve

QCD

Just In Time

Delivery

JIDOKA

(Automation)

Pull

Continuous

Flow

Production

Tact Time

Built in

Quality

Man Power

Saving

MUDA

(waste)

Abnormality

KAIZEN

daily

continuous

improvement

HRD

(Human Asset)

Profit

(survival)

TPS ( Toyota production system ) outline

3 C 2013

Pillars of Lean

5S

is

Fo

un

datio

n

Continuous

Improvements

Waste Reduction

•Genchi-Genbutsu

•Eyes for Waste

•5 why

•Problem solving

Right-parts, right

amount, right time

•Tact Time Planning

•Continuous Flow

•Pull System

•Quick Change Over

•Integrated Logistic

Leveled Production (Heijunka)

(In-station Quality)

Make Problems Visible

•Autonomous Stops

•Andon system

•Person-machine separation

•Error proofing

•In-station quality control

•Solve root cause of problems

Stable and Standard Processes

Visual Management

Toyota Way Philosophy

Best Quality - Lowest Cost - Shortest Lead Time - Best Safety - High Morale

Through shortening the production flow by eliminating waste

People & Team Work

•Selection

•Right decision making

•Common Goals

•Cross-Training

JIT Jidoka

4 C 2013

Concrete lean production system

5S activity

Continuous improvement

Man, Machine, Material, Method

Eliminate waste mind

Chinese

Culture

European

Culture

Productiv

ity Quality Cost Delivery Safety Morale

JMAC China Lean “House”

5 C 2013

Training

Guidance

Diagnose

Approach

Implementation

Finding problem

“ Problem solving approach ”

Lean tools and methodology

Advice for solving the problems

Follow the lean implementation

Set Kaizen target

P D C A

Lean knowledge transfer

Consultant

Experience and Tips

Help to achieve the targets

Case study 1: Italian “Z” company in China (Large size)

Maintain the results and create long term lean production system

6 C 2013

Case study 1: Italian “Z” company in China (Large size)

Productivity

W I P

Quality

Lead Time

Production

Space

Production

Dept.

Quality

Dept.

Engineering

Dept.

Logistics

Dept.

R&D

Dept.

Top

Management

7 C 2013

Lead time 20%

W I P 35%

Productivity 20%

Defective 50%

Efficiency

5S , VM

Knowledge

Mindset

Tangible

Results

Intangible

Results

Production space

20% Lean System / Culture

Case study 1: Italian “Z” company in China (Large size)

8 C 2013

Lean

“Rookie”

Lean

“Average”

Lean

“Mature”

HRM

“Rookie”

HRM

“Average”

HRM

“Mature”

Case study 2: Italian company “C” in China (Small size)

Now 2 Years before Future

9 C 2013

Case study 2: Italian company “C” in China (Small size)

Lean

implementation HRM

Lean

Knowledge

Practice

Lean system

Strong

Experience

HRM

Assessment

Mutual trust

Problem

Empowerment

Capability

Enhancement

Good human resources to do Right lean implementation

10 C 2013

Lean production

Training

Start Lean HRM

Assessment

Lean small practice

HRM

Empowerment P1

HRM

Empowerment P2

Lean HRM

Create

Lean concept

Find HRM

Problem

Obtain the

Knowledge

Achieve

Tangible results

Lean production

implementation

More efficient

to the operation

Solve HRM

problem

Countermeasure

Implementation

HRM

Empowerment P3

Capability

development

Create Lean system Develop Local Human assets

Case study 2: Italian company in China (Small size)

11 C 2013

KAIZEN (change mind)

Eliminating Wastes (change attitude)

Improve Productivity & QCD

(change work site)

Increasing

Company’s Profit

Increasing

Employees’ Satisfaction

Increasing

Customers’ Satisfaction

Objective of Kaizen

12 C 2013

The reality of Lean implementation

Timing for lean?...

- Hurry up !

Company won’t change is the most dangerous things

Our staff have no motivation on lean implementation…

Our staff is lack of knowledge…

Our company won’t be change, because we are good enough….

We don’t have time…we are busy

We don’t have extra budget work on lean…

Japanese way is not suit for us…

13 C 2013

Resource for lean?...

- Human assets !

Human assets is most valuable recourses in the company !

How to manage your staff with company lean implementation ?

How to motivate your staff of doing Kaizen activities ?

How to change your staff’s mindset ?

How to cultivate your staff for company sustainable development?

The reality of Lean implementation

14 C 2013

Lean implementation KSF for European company

Lean

System

Process

Regulation

Assessment

Understanding Adopt lean thinking and culture from top to down level

Create “ daily ” lean implementation process

( P, Q, C, D, S, M on 4 M )

To ensure people follow by the right Lean process

( Established the regulation, make people compliance)

Evaluate staff lean production performance ( Related to KPI )

Human

Asset

Career

Planning

Capability

Development

Motivation

Communication Create good and efficient communication atmosphere from top

management to the down management level

Help staff to establish their clearly career path and also integrated

their willing.

Help staff to define their strong and weak capability and to improve

in order to taking their roles and responsibility better.

Give staff motivations to do the lean production

Implementation ( Tangible and intangible benefit for them )

15 C 2013

Best mix way for lean implementation

Aiming for

Increase productivity

Improve quality

Cost reduction

Shorten lead time

Improve profitability, etc.

Implement localized &

customized standard

program on shop floor led by

Chinese!

Lean

Implementation

Change

Company

Culture

Change

Company

Performance

Change

Employees

Mind