A STRATEGY FOR PERFORMANCE EXCELLENCE Kaizen A STRATEGY FOR PERFORMANCE EXCELLENCE

Performance Excellence Series Training Module Elements Executive Overview Knowledge Breakthrough Tools Workbook Lecture notes Lecture notes Participant manual

Table of Contents Knowledge Breakthrough Session 1.0 Introduction………………………… 3 Session 2.0 Wastes Elimination…………………7 Session 3.0 One-piece flow…………………….26 Session 4.0 Single Minute Exchange of Dies…..65 Session 5.0 Visual Control and Workplace Organization……………………… 78 Session 6.0 Quality the first time, every time… 97 Session 7.0 Total Productive Maintenance…...127

Continuous Improvement Is the continuous elimination of waste

+ What Does Kaizen Mean? KAI ZEN = KAIZEN To modify, to change Think, make good, make better = KAIZEN Make it easier by studying it, and making the improvement through elimination of waste.

Why Kaizen CPI (Continual Performance Improvement) Kaizen 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 Process Improvement Project Implemented Savings Maintenance of Process Performance Time CPI Project CPI Projects Emphasize Control and Long Term Maintenance Savings Continual Performance Improvement uses a 6 step approach to achieve process performance improvement. Step 1 Measure Step 4 Verify Step 2 Evaluate Step 5 Standardize Step 3 Improve Step 6 Repeat steps 1-5 It is a conceptual strategy of approach utilizing process mapping any number of statistical methods tools to assess efficiency of performance. Kaizen is a performance improvement methodology focused on identification and elimination of the 7 forms of process waste. Kaizen Use Small Teams to Optimize Process Performance by Implementing Incremental Change Apply Intellectual Capital of Team Members Intimate with Process Time Kaizen Savings CPI Kaizen Projects Emphasize Incremental Improvements Time

The Nine types of waste Overproduction Delays (waiting time) Transportation Process Inventories Motions Defective products Untapped resources Misused resources 9 Wastes These are the seven characteristic types of waste affecting process performance. Everything we do or make that does not add value to the product is waste. The goal is to minimize wastes, maximize value add.

1. Overproduction To produce more than is required * 9 Wastes To produce more than is required * To produce before required * *Required by external and internal customers Creates waste in the forms of additional storage space required, potential inventory obsolescence, shelf life issues, etc.

Elimination of Wastes and Continuous Improvement The Secret: Be Systematic Work with a versatile team Measure, evaluate Find the 5 Whys Follow up Standardize, make uniform Simplify Combine Prevent Make waste ugly Cross-functional teams employing a systematic method of approach are most effective in identifying and eliminating wastes.

Exercise 1: Wastes Identification Think Break Exercise 1: Wastes Identification 1. List at least one example of each of the 9 categories of waste from a process within your organization. 2. Identify at least one possible cause for each of the specific wastes listed. 3. Propose one or more actions to reduce each of these wastes. 4. Identify methods of measurement to determine results of waste reduction efforts. Exercise objectives: Use the 7 waste definitions as applied to the participants workplace Apply the “5 Whys” approach to identifying possible root causes Brainstorm solution possibilities Identify potential follow-up measures of solution effectiveness

Exercise 1: Wastes Identification Think Break Exercise 1: Wastes Identification Exercise objectives: Use the 7 waste definitions as applied to the participants workplace Apply the “5 Whys” approach to identifying possible root causes Brainstorm solution possibilities Identify potential follow-up measures of solution effectiveness

We will learn to: Recognize our lead-times Identify their components Reduce them with the help of the dedicated lines a one piece flow Establish dedicated lines in relation to family of parts in relation to TAKT time Attain one piece flow This is a strategy of approach to implementing one piece flow.

This is life! If not, it’s torture… When the delivery lead-time is bigger than the manufacturing lead time: This is life! If not, it’s torture… Delivery lead time Manufacturing lead time In this slide, we see the impact of manufacturing lead time on service level. Manufacturing lead time exceeding delivery time provides the excuse for having excess inventories. Delivery lead time Manufacturing lead time

False appearance of a solution Solution… What is the solution? False appearance of a solution Solution… Delivery lead time Manufacturing lead time Generate and support stocks Creating excess inventory and warehousing of finished goods masks the root cause: wastes in manufacturing. Delivery lead time Manufacturing lead time

How to reduce the manufacturing lead time? Delivery lead time Identify and eliminate all wastes in our manufacturing processes Example: manufacture a Total operations: 6 hours Mfg. lead-time: 40 days = 320 hours Difference: 314 hours Manufacturing lead time The first step in addressing waste is to identify and quantify it. ?

What are processes made of ? Delivery lead time Example: manufacture a Total operations: 6 hours Mfg. lead-time: 40 days = 320 hours Difference: 314 hours Manufacturing lead time Next, identify the components of lead-time Storage, Transport, Waiting time 98%

Visual Control & the Workstation To Sort Eliminate what’s not absolutely necessary To Straighten Ensure space for each thing, and a thing for each space. No more searching. The 5 S To Sustain Maintain continuous effort. This is a way of life. All conditions existing in the workplace that act to complicate or impede efficiency in meeting desired product or service requirements are the focus of improvement. This includes housekeeping, the 5 steps of which are diagrammed above. To Sweep Maintain a clean and orderly space to make problems easily identifiable. Eliminate rejects and scrap.. To Sanitize Improvement of the workstation. Be organized to reduce clutter.

Visual Control & the Workstation Ergonomics Adapt the workstation to the employee - more security - more comfort Reduce waste - excessive fatigue - useless efforts and movement - less physical constraints Equally important to productive efficiency is attention to the ergonomics conditions of the workstation. Excessive or difficult movements in accomplishing tasks create muda, and should be addressed.

Kaizen for the Workplace Training and Sourcebook for Kaizen Worksheets

How to Use This Manual Leadership The continuous improvement tools that are presented in Sections 1-9 of this manual are shown in order of use. These forms MUST be completed in the order presented in this manual. Each section contains a brief description of the tool, its purpose, when to use it, who should use it, how to use it, and the expected results. Remember to focus on the elimination of waste. Strive to maximize yields and obtain cost reductions from existing machinery and equipment before “buying solutions”. Improve current systems and techniques before automation. Automating a system or practices without first having an understanding of the process will not solve underlying process problems. Perhaps the most important point to remember is that we must understand a process before we make any attempt in changing it. “No Tampering” is the first rule of continuous improvement. We can not tamper with a process without understanding it. By using these tools, we will all share a common and systematic approach for questioning, analyzing, proposing solutions, experimenting, and finally, implementing proven changes. “The problems that exist in the world today cannot be solved by the same level of thinking that created them.” Leadership Identify waste Improvement Kaizen Template Measurement

Time Observation Form

How to use it 6. Once the actual cycle times are known, compare them to TAKT time. TAKT Time for measurable, repetitive task processes is calculated as follows: A. Calculate the total time available per shift, day, etc. excluding breaks and lunches. Let’s say that we have a full 8 hours available. 8 hours would equal 480 minutes or 28,800 seconds. B. Determine the required product quantity. [How many units have been sold] For this example, let’s use 395 units for the required production for this operation. C. Next, divide the total time available by the required production to arrive at the TAKT Time. 28,800 / 395 = 73 seconds per unit. D. Compare this TAKT time to the average cycle time of the observation. 1. If TAKT Time is greater than average cycle time, then we can conclude that the required production can be met within the total time available. However, we need to examine adding work from another process to minimize idle time. 2. If TAKT Time is less than average cycle time, then we can conclude that the required production cannot be met within the total time available. We must eliminate work through Kaizen or transfer work to another worker.