1. Competing in the Marketplace
Kaizen Training
Competing in the Marketplace
“What factors are important to the customer?”
John Deere - Supplier Development

2. Kaizen Training TIME: The single best indicator of competitiveness
Set-up or Change-over Time
Product Development Time
Manufacturing Cycle Time
Customer Lead Time / Delivery Time
Working to reduce or minimize each of these times can make your company more valuable to both its internal and external customers.

3. Manufacturing Lead Times
Kaizen Training
Shrinking Lead Times
Order Lead Times
Manufacturing Lead Times
Delivery Lead Times
Reducing the overall time from receiving the order to delivering the product makes your company more responsive to the customer. This can become the deciding factor when the customer makes their selection.
As can be seen, manufacturing is only one part of the entire process. Inputting, processing, and issuing orders is an area for improvement, as well as, assembly, loading and delivery to the customer`

4. Kaizen Training Where’s the Time in Lead Time
This timeline represents an overall lead-time, with very little time spent on adding value to the product.
Non-Value Added Time (NVA)
99% of Total Lead time
Value Added Time (VA) 1%
Common
Concentrated on reducing VA time, with no attention given to NVA.
Improvement Efforts
Non-Value Added Time (NVA)
99% of Total Lead time VA
1/2 %
Results of Common Improvement efforts, did not improve response time. VA time is reduced, but, the costs for those improvements in lead time was substantial.

5. Non-Value Added Time (NVA)
Kaizen Training
Where’s the Time in Lead Time
When we look at attacking the NVA Activities in the Timeline and compare that to the original timeline:
Greatest Opportunities are actually here!
Non-Value Added Time (NVA)
99% of Total Lead time
Value Added Time (VA) 1%
NVA Time
95% of Total Lead time VA 5%
Great Job!!
This shows a 5X improvement in lead time

6. Kaizen Training Different Types of Activities
Being able to tell the difference between NVA and VA activities is an important step in the Improvement Process.
An activity that changes raw material to meet customer expectations.
Value Added Activity (VA)
Those activities that take time, or occupy space but do not add to the value of the product.
Non Value Added
Activity (NVA)
You must ask yourselves “Would you as a customer be willing to pay for any NVA activity being performed to that NEW 4x4 Pickup you just ordered?”

7. Kaizen Training
Some examples NVA Activities:
Waiting on machine cycle
Walking
Unnecessary stock on hand
Generating useless reports
Unnecessary motion
Transporting parts
THE GOAL IS TO ELIMINATE THE NON-VALUE ADDED ACTIVITIES.

8. A definition:
Destroy, in our minds, the concepts and techniques of manufacturing that we practice today.
Create a vision of what our production system and manufacturing techniques should be.
Carry out that Vision by breaking through the status quo.
KAIZEN
We must avoid the urge to discover more sophisticated and technological solutions to tasks we shouldn’t be doing at all.

9. Kaizen Training Basic Rules for Change Keep an open mind to change
No such thing as a dumb question or idea
Avoid spending money (Capital expense should be a last resort)
Maintain a positive attitude
Don’t’ make excuses & question current practices
Think about how to do it, NOT why it can’t be done
Just do it!!
Have Fun!!!

10. Kaizen Training Steps on Team Development Forming Storming Norming
This is the development of a multi-functional team with a variation of backgrounds and knowledge
Storming
Open & honest discussion, also brainstorming
Norming
Stage where the group agrees how to operate as a team
Performing
Agreement on solutions & taking action
Adjourning
Closing on the continuos improvement process after 30 days

11. Kaizen Training What is TAKT Time?
TAKT time is how many minutes or seconds are needed to make one part when considering the daily volumes, to be produced in that workcell and the total time available to perform the job.
TAKT time is NOT the time it takes to manufacture the product. It is based on customer demand.
Who is the customer?
The next operation
Customer orders

12. Kaizen Training TAKT TAKT Time: TAKT Time Calculation
Production Time Available / Period
Number of Required Units / Period
TAKT
Production Time Available / Period (one shift):
Breaks - 10 minutes
Shift Time ( 8 hrs. )
Clean-up at end of shift
Production Time Available:
- 20 mins.
480 mins.
- 5 mins.
455 mins. or
27,300 secs.
Units Required / Period (one shift):
10,500 Units Sold Monthly
21 Working shifts / month
500 Required units / shift
27,300 secs / shift
TAKT Time:
54.6 secs.
500 units / shift

13. Kaizen Training The 5S Housekeeping Standards Sort Sanitize (Safety)
First Step towards Continuos Improvement
The aim of 5S is to create an atmosphere to keep a clean, organized, safe and efficient workplace for everyone.
The foundation for the practice of 5S, comes from a Japanese program derived from these words, seiri, seiton, seiso, seiketsu and shitsuke. The 5S’s are a conventional approach towards maintaining and improving the work place. The following words have been chosen for the 5S acronym’s.
Sort
Sanitize (Safety)
Sweep
Straighten
Sustain

14. Kaizen Training Meaning of the 5S’s Sort Straighten Sweep
Examine everything at the workplace & identify what is needed and what can be discarded
Straighten
Organizing the way things are put away with efficiency, quality, and safety in mind. Need to decide where and how things should be put away and what rules should be obeyed to insure that it is maintained.
Sweep
(Scrubbing clean)
Sweeping, scrubbing and cleaning of the building, machines, fixtures & tools so that all areas of the workplace are neat & tidy. This leads to early detection of mechanical problems before they become major breakdowns. Machines cry!

15. Kaizen Training Meaning of the 5S’s Sanitize Sustain
(Safety)
Insuring that each workplace is properly designed for safety. This is to protect every member from the dangers during the performance of their assigned tasks.
Sustain
(Standardize)
Developing the practice necessary to continually participate in the 5S process. This requires that each of the S’s become a personal habit. This is the most difficult of the 5S’s, but it is the most important factor in achieving long term success. Establishing routines and procedures for maintaining and improving on the first four (S’s), incorporating visual management tools.

16. Kaizen Training
WASTE

17. Kaizen Training Staffing Productivity Waste Productivity
Do MORE with LESS
Staffing
Productivity
Waste
Productivity

18. WASTE SHIFT MINDSET CURRENT REQUIRED THINKING THINKING Processing
Transportation
Inventory
Correction
WASTE
TYPES OF
WASTE
Over-
Waiting
Production
Motion
WASTE IS "TANGIBLE”
IDENTIFY MANY SMALL OPPORTUNITIES
-LEADS TO LARGE OVERALL CHAGE
CONTINUOUS IMPROVEMENT
WASTE NOT DEFINED
REACT TO LARGE EXAMPLES
REACTIVE IMPROVEMENT

19. ELEMENTS OF WASTE Definition Example
1. Transportation - Transporting Transportation - Carrying
farther than necessary or Tools to Point of Use
temporarily locating, filing,
stacking and moving parts
(people, paper, information) is
waste.
2. Correction - Doing something Correction - Redo an Activity
over is waste Because of Error
3. Overproduction - Generating Overproduction - Number of
excess paper or information, or Copies
generating information or paper
too soon in a process is waste.

20. ELEMENTS OF WASTE Definition Example
4. Motion - Unnecessary work Motion - Tools in drawers
movements are a form of waste.
5. Waiting - Waiting for people, Waiting - Meetings to start
paper and information is waste -
it stops work.
6. Inventory - Too much of Inventory - Supplies
anything is waste.
7. Processing - this is waste in Processing - Typed when
the process itself. Redundant handwritten would be
activities sufficient

21. Kaizen Training Process requires ongoing inspection and enforcement to
ensure “Standardized Work” is being followed
Standards
Inspect
Enforce
Process does not improve automatically
Standardize
Problem Solve
Improve
Stabilize .
Identify
Waste
- Following standards will only maintain, not improve, the process.
- Improvement focuses on the entire process.