1. FMS Executive Series
Kaizen

2. Continuous Improvement
Kaizen Basics
Continuous Improvement
Kaizen (Ky’zen)
“Kai” -- change
“zen” -- for the better
The 3 M’s are the major focus of Kaizen
Muda Waste
Mura Abnormality, irregularity, instability
Muri Strain, Stress, burden

3. FMS is About Value and Elimination of Waste
FMS is about creating value through the elimination of waste.
Waste itself generates other wastes that hide our ability to distinguish it from Value Add work
Deficiency
Root wastes
New Wastes
Process Consequences
* Excess WIP at random
* WIP starvation at constraint
* Little to no flexibility to change
* 5S difficult to maintain
* Excess appears justified
* Complexities develop
* Unbalanced process
* Unmanaged constraint
* Overproduction
* Inventory
* Overprocessing
* Wait Time
System Consequences
* Additional Material demands
* New Space requirements
* Apparent need for more capacity
* Lead Time increases
* Build to F’cast instead of Demand
KEY NOTE
The journey toward JIT drives improvement to all variables that affect value and generate waste

4. Kaizen Needs… Show me the Muda!
Why Kaizen
Benefits & Expectations
To systematically eliminate root causes of the 9 Wastes
To establish a method to continuously improve through everyone’s participation
Less Direct Labor Requirements
Less Indirect Labor Requirements
Less Space Requirements
Increased Flexibility
Increased Quality
Increased Responsiveness
Increased Innovation
Increased Employee Enthusiasm
When to Kaizen
When an opportunity for improvement is clearly identified
When results are needed immediately
To gain momentum and credibility in the early stages of engagement
As a change agent when there is client resistance to stimulate change
As a project launching tool leading to multi follow-on projects
For any problem with known boundaries

5. 3 Types of Kaizen at Flex Quick and Easy Kaizens (1+ days):
Executed by operators/CFT from their own suggestions to support VSM
Require minor documentation (reason for change, results, benefits)
Must have a benefit to the employee
Frequent events to keep up/stay ahead of changes
Examples: 5S, materials repositioning, personal safety, ergonomics, etc…
VSM Kaizens (3 - 5 days):
Planned kaizens as determined in the VSM
Require kaizen form and metrics follow up (3 to 6 months)
Needs cross functional team participation
Examples: line balancing, work redistribution, mat’l handling, etc…
Kaikaku (5+ days):
More radical process changes that require detail planning
May require senior management participation
Requires cross functional team and will most likely incur costs
Examples: New Equipment, Kanban implementation, Layout changes, etc…

6. How: The Deming Cycle Do it again Lessons learned (what worked best?)
Is there further improvement in this or other similar process?
Assest scope, goals and plan again
Understand the opportunity
Walk it /touch it /talk to people
Collect data and analyze it
Select approach (focus/angle/level)
Train/Train/Train…
Track the change
Determine appropriate metrics
Measure performance 3-6 moths
Assess achievement of desired and unexpected results
Explain all results (bad/good/better)
Choose a date and do it
“Best” the obstacle to better (just do it)
Use pictures and metrics
Create momentum
Recruit participants

7. Sample Kaizen Steps Preparation and Organization
Training and Process Mapping (Discovery)
Materials/Information flow layout
Conduct time study operations
Determine Non Value Added activities
Review waste elimination techniques
Brainstorm and Prioritize process improvement
Create Future State the action items list
Implement process improvements
Repeat steps 4 through 9 until objective is achieved
Develop Standard Operating Procedures

8. Current State Kaizen Future Sate
Eliminate Conflicting Demand
Current State
Finished Goods Supermarket
Establish Heijunka (Load Leveling)
Create Manufacturing Cell
Establish FIFO (Imbalance Kanban)
Total LT
NVA: 29.5 Days
VA: 730 Secs
Change Shipping Frequency
Create Flow
Future State
Eliminate Multiple WOs
Change Scheduling Method
Lead Time Reduction is The Goal
Changeover Time Improvement
Reconfigure Layout (Line Design)
Phase 1
Total LT
NVA: 10.5 Days
VA: 630 Secs

9. Implementation Plan Think global / systems optimization
Maximum impact to process
Speed of implementation – create small victories
Cost-benefit analysis (not always $)
Will new skill sets be required, and how to achieve them?
Is the current organization structure sufficient?
Are there cultural issues?
Is there potential for “push back”?
Any implications for suppliers?
Implications for customers?
Implications for team members?
Do current technologies support the new process?
Are they available and cost justifiable?
Technology is an enabler, not a solution.
Does the reward system support the new process?

10. Check and Sustain
Value = Function = Effects of kaizen
Cost sum(time/labor/all other)
Large improvements take time and can’t be done quickly … this becomes the obstacle to improvement
Small kaizens can be done immediately

11. Roadblocks Too busy to study it
A good idea but the timing is premature
Not in the budget
Theory is different from practice
Isn’t there something else for you to do?
Doesn’t match corporate policy
Not our business – let someone else analyze it
It’s not improvement – it’s common sense
I know the result even if we don’t do it
Fear of accountability
Isn’t there an even better way?
Don’t procrastinate
Don’t find an excuse
Don’t wait … now

12. Do you see opportunities to improve?
Can Lean help…
Reduce Manufacturing Lead Time?
Improve materials management?
Increase productive capacity?
Increase flexibility?
Provide higher value to customers?
Reduce overall costs?

13. Do you see opportunities to improve?
List some things we can do today