KAIZEN PROCESS 3.1.1 INTEGRATING MANUFACTURING & SPECIAL PROCESSING

3.1.1 Kaizen Process INTEGRATING MANUFACTURING & SPECIAL PROCESSING The purpose of the Kaizen Process is to accelerate and create breakthroughs in work-area process performance. 3.1.1 Kaizen Process – How does your organization set and review priorities for Kaizen events? How are Kaizen events conducted? How is recognition for team members provided and are senior managers and the workforce involved? How are lessons learned shared with others who can benefit? How are process improvements documented and deployed to others using the same or similar processes? How are internal Kaizen leaders developed and deployed? How are goals set for Kaizen leadership and how is progress monitored? Setup Preparation Event Post Event KAIZEN PROCESS Kaizen Leader collects data from work area related to upcoming Kaizen event Kaizen Leader confirms objectives with Process Owner and Champion Resources are approved by Champion – standby resource confirmed Kaizen event schedule is set with specific daily action plans Value Stream Maps Kaizen Splash Plans Annual Improvement Plan Kaizen Team Leader appointed from work area Kaizen Objectives set and linked to Annual Improvement Plan Conduct training Assign action plans Daily report outs Pilot run if applicable Create new standard work and training Prepare report out Present results Manage event follow-up Share results and learning with other teams/work areas PPT report Feedback Collect feedback and improve process Areas Addressed 3.1.1 Kaizen Process INTEGRATING MANUFACTURING & SPECIAL PROCESSING

INTEGRATING MANUFACTURING & SPECIAL PROCESSING PLAN From strategic plans From previous kaizens From CAPA From Organizational performance From operators From metrics Facility management approvals Includes ROI estimates at this level INTEGRATING MANUFACTURING & SPECIAL PROCESSING

Team Leader follows up on Action Items related to the Kaizen. Key Roles Team Leader follows up on Action Items related to the Kaizen. Process Owner is responsible for updating documentation, and ensuring that training takes place. Process Champion oversees the change process, and ensures accountability of the Process Owner and Team Leader. INTEGRATING MANUFACTURING & SPECIAL PROCESSING

Strategic Goals INTEGRATING MANUFACTURING & SPECIAL PROCESSING Goal #1 Increase Process OTD from 97% to 98% by September 2012. (Measured on a 3 month rolling average) Goal #2 Increase Manufacturing OTD from 96% to 97% by September 2012. (Measured on a 3 month rolling average) Goal #3 Increase Productivity (earned hours/actual paid hours) from 55% to 85% by September 2012. (Measured on a 3 month rolling average) Goal #4 Reduce Scrap Dollars from $15,476/mo. (2.4% of Sales) to $10,850/mo.(1.7% of Sales – 1% per month) by September 2012. Goal #5 Decrease Internal and External PPM from 3273 to 2000 by September 2012. (Measured on a 3 month rolling average) Goal #6 Decrease Safety Incidents from 3 to 0 by September 2012. Strategic Goals INTEGRATING MANUFACTURING & SPECIAL PROCESSING

INTEGRATING MANUFACTURING & SPECIAL PROCESSING Set-Up Reduction Value Stream Improvement Process (VSM) Kanban- Pull Systems Office Kaizens Flow Manufacturing The one common element: these tools help us eliminate waste from our processes. INTEGRATING MANUFACTURING & SPECIAL PROCESSING

Value Streams INTEGRATING MANUFACTURING & SPECIAL PROCESSING The effect on a VSM is also required at the PLAN stage The first of many “WHYS” INTEGRATING MANUFACTURING & SPECIAL PROCESSING

INTEGRATING MANUFACTURING & SPECIAL PROCESSING Many versions of a ROI. This is one, a lean benefits calculator tool, excel based. Other types CASH DOCTOR Create your own The Idea is to PLAN and be ready for the questions of the management team INTEGRATING MANUFACTURING & SPECIAL PROCESSING

INTEGRATING MANUFACTURING & SPECIAL PROCESSING Every event must utilize 6S 6S can also be the event. It is a great starting place. INTEGRATING MANUFACTURING & SPECIAL PROCESSING

INTEGRATING MANUFACTURING & SPECIAL PROCESSING CONTRACT REVIEW PROCESS FLOW PO REC TRIGGER < 90 N Y NEW NPD PROCESS REVIEW EDIT QA PRODUCTION Process Flows, product Synchronizations, flow charts Whatever you want to call them. They provide the process naming, resource planning, and common language. The start and stop points. INTEGRATING MANUFACTURING & SPECIAL PROCESSING

INTEGRATING MANUFACTURING & SPECIAL PROCESSING ENGINEER TO ORDER PROCESS FLOW Process Flows, product Synchronizations, flow charts Whatever you want to call them. They provide the process naming, resource planning, and common language. The start and stop points. INTEGRATING MANUFACTURING & SPECIAL PROCESSING

INTEGRATING MANUFACTURING & SPECIAL PROCESSING HOSPITAL ADMISSIONS PROCESS FLOW Process Flows, product Synchronizations, flow charts Whatever you want to call them. They provide the process naming, resource planning, and common language. The start and stop points. INTEGRATING MANUFACTURING & SPECIAL PROCESSING

INTEGRATING MANUFACTURING & SPECIAL PROCESSING Process Flows, product Synchronizations, flow charts Whatever you want to call them. They provide the process naming, resource planning, and common language. The start and stop points. INTEGRATING MANUFACTURING & SPECIAL PROCESSING

INTEGRATING MANUFACTURING & SPECIAL PROCESSING Spag diagrams are a big assistance when defining the flow Actually walk the parts once Use steps to count how far things move. Look for WIP in the locations (VSM Information validation) Validate the process flow INTEGRATING MANUFACTURING & SPECIAL PROCESSING

INTEGRATING MANUFACTURING & SPECIAL PROCESSING

INTEGRATING MANUFACTURING & SPECIAL PROCESSING days per period [ 249 Growth number of period [ 1 8% Part Number Description Period Volume Daily Volume Line Design Volume   - Totals [ Volume definitions Time period plans Growth rate and potential Use the 80 / 20 rule to define the items, family, cell etc….. INTEGRATING MANUFACTURING & SPECIAL PROCESSING

INTEGRATING MANUFACTURING & SPECIAL PROCESSING LEAVE WJ/BRAKE CELL SWAP CNC WALL CURRENT FUTURE 1 FUTURE 2 FUTURE 3 FUTURE 4 LABOR MATERIAL DISTANCE WATER 22 30 24 SAW 3 25 LASER 1.3 50 0.9 BRAKE 1.5 4.7 1.9 1 6 0.75 MAN MILL 10 52.55 CNC 8 0.2 0.1 15 5.3 1.0 0.6 0.8 3.8 20 1.1 2.1 2.3 4.0 DEBUR 28.96 1.2 5096 MIG 90 61 12.5 6.6 9 9.6 GRIND 6.9 4.4 5 SANDBLAST 8.75 4.375 PAINT 252.5 35.4 MIN 503.5 STEP 331.1 477.5 264.5 241.8269231 255.1692308 266.0336538 HRS 8.4 FT 827.7 8.0 661.2 604.5673077 637.9230769 665.0841346 26 66.6 89.26843891 75.92613122 65.06170814 199.8 267.8053167 227.7783937 195.1851244 3.3 4.463421946 3.796306561 3.253085407 0.0 HOURS 0.4 4 YRS 1102.8 565.1 757.3 644.1 551.9 $0.00 SAVGS $167,296.29 $14,126.62 $18,932.35 $16,102.67 $13,798.50 SETUP 419.1 TOTAL SAVGS 683.8 $181,422.91 $186,228.64 $183,398.95 $181,094.79 MOVE $22,022.48 $2,500.00 ELECT $19,801.59 $30,000.00 COST $37,500.00 $35,000.00 $143,922.91 $148,728.64 $148,398.95 $146,094.79 $90,000.00 $233,922.91 $238,728.64 $238,398.95 Generate ideas for improvement, identify the top options by team votes ROI each idea. This is an example of a cell design we did for a small family of products 4 cell ideas, 2 persons teams, and justify the idea Baseline it to the current method Labor, walking, queue, WIP, machines, movers Estimate savings as per the baseline costs. INTEGRATING MANUFACTURING & SPECIAL PROCESSING

INTEGRATING MANUFACTURING & SPECIAL PROCESSING

Metric Pre-Kaizen Post-Kaizen Change Travel 1986’ 500’ 1486’ 74.8% CONTRACT REVIEW KAIZEN Metric Pre-Kaizen Post-Kaizen Change Travel 1986’ 500’ 1486’ 74.8% LT Mfg 20.2 d 1 d 19 d 95% LT Process 2 d 0.5 d 1.5 d 75% WIP 18 j 4 j 14 j 77.8% INTEGRATING MANUFACTURING & SPECIAL PROCESSING

Metric Pre-Kaizen Post-Kaizen Change ENGINEERED TO ORDER KAIZEN Metric Pre-Kaizen Post-Kaizen Change Cycle time – New 2150 min 1725 min 425 min 19% Cycle time – Repeat 830 min 645 min 185 min 22% Work Instructions 5 Lead Time 387 hrs 375 12 hours 4% Through-put 1.78 Jobs/d 2.54 jobs/d .76 jobs/d 46% $4,000,000/yr INTEGRATING MANUFACTURING & SPECIAL PROCESSING

Metric Pre-Kaizen Post-Kaizen Change Planning time 4 days 1 day 3 days PRODUCTION PLANNING KAIZEN Metric Pre-Kaizen Post-Kaizen Change Planning time 4 days 1 day 3 days 75% WIP Inventory 71 Jobs $1.3 mil 24 Jobs $0.4 mil 47 Jobs 66% Through put 75 pcs/day INTEGRATING MANUFACTURING & SPECIAL PROCESSING

Dollarized Improvement Dollarized Improvement HOSPITAL 7S KAIZENS Benefits PROJECT 1 Metric Pre-Event Post-Event Improvement Percentage Dollarized Improvement 7S AUDIT SCORE 12 pts  91 pts   79 pts 658%    SQUARE FOOTAGE  172 sq ft 100 sq ft   72 sq ft  42% $100,800 SAFETY Dangerous Hazard free TIME 30 min  100% $15,750 Benefits PROJECT 2 Metric Pre-Event Post-Event Improvement Percentage Dollarized Improvement 7S AUDIT SCORE 3 pts   67 64 pts  2133%   SQUARE FOOTAGE  8 sq ft TIME 10 min  100%  $1100.00  GENERAL APPEARANCE  cluttered  neat INTEGRATING MANUFACTURING & SPECIAL PROCESSING

LESSONS LEARNED Don’t be rigid in your kaizen process Have a coordinator to manage the events Too many events at once will create a mess Schedule the events to manage resources Communicate, Communicate, Communicate ROI Before the event Small to make big, Big to make better INTEGRATING MANUFACTURING & SPECIAL PROCESSING

QUESTIONS ? INTEGRATING MANUFACTURING & SPECIAL PROCESSING

Thank You INTEGRATING MANUFACTURING & SPECIAL PROCESSING Paul Kobishop Director of Quality Assurance and Lean Systems Continuous Improvement Manager Phoenix, AZ pkobishop@yahoo.com 303-882-6040 INTEGRATING MANUFACTURING & SPECIAL PROCESSING