4KAIZEN® (new Definition) - Everyday improvement- Everybody improvement- Everywhere improvement- From small incremental improvementtodramatic strategic improvement
5Improvement Maintenance What is Management?Top-managementImprovementMiddlemanagementMaintenanceEmployees
6Innovation KAIZEN® Maintenance What is Management?Top-managementInnovationMiddlemanagementKAIZEN®SupervisorsMaintenanceEmployees
7Organisation for KAIZEN® GembaCustomerExpectationsCustomerSatisfactionOrganizationtosupport
8The 5 Gemba Principles1. When an abnormality occurs, go to Gemba first2. Check with Gembutsu (machine, material,failures, rejects, unsafe conditions etc.)3. Take temporary countermeasures on the spot4. Remove root cause5. Standardize to prevent trouble
9House of Gemba Management ProfitmanagementWorkers’operationsInformationEquipmentProducts& materialsQ C DQuality& safetyCostLogisticStandardization5S (Good housekeeping)Team-workself-disciplineMorale enhancementQC circlesSuggestionsMuda Elimination
107 Types of Muda1. Muda of over-production2. Muda of waiting3. Muda of transport4. Muda of processing5. Muda of inventory6. Muda of motion7. Muda of repair/rejects
11Everything in Gemba deteriorates if left alone. That is the reason why Gemba needs to be sustained and improved.
12Five S‘s Practical means to realize a shortest flow and synchronization between processes.If 5S’s are not contributing to the aboveobjectives, it benefits are not fully gained.
15Make Eye contact and Smile Greet and welcome Each and Every Guests DisneylandBehavioral standardsMake Eye contact and SmileGreet and welcome Each and Every GuestsSeek out Guest ContactProvide Immediate Service RecoveryDisplay appropriate Body LanguagePreserve the “Magical” Guest ExperienceThank Each and Every Guest
16４ Pillars of World Class Management TQMTPMTFMTSMTotalQualityManagementTotalProductiveMaintenanceJustInTimeTotal ServiceManagementQuality costLossesFlowCustomer satisfaction
17KAIZEN® Road Map to world class (1) JITCost and deliveryElimination of all types of MUDATPMQuality of EquipmentTQMQuality of Product, Service, Systems and Work
18KAIZEN® Road Map to world class (2) Integration of JIT and ITWorldclassElectronic KANBANOrder entry system / Producing as many as need in the same sequenceUpstream Managem./ involve R&D and engineeringSupplier management / Supplier involvement in JIT / KAIZENLeveling / Adding flexibility to Production SchedulingJITPull system / Allowing no advance ProductionTAKT Time / Producing only what customers orderedTPMFlow Production / Lead Time Reduction (MUDA of Conveyance, inventory, excess manpower)Autonomous maintenanceTQM5SPhase 0123
19KAIZEN® Road Map to world class (3) Integration of JIT and ITWorldclassElectronic KANBANOrder entry system - Quick delivery - Menu -Large ordersUpstream Managem./ involve R&D and engineeringSupplier management - Extending JIT / KAIZENLeveling - Small lot production - Lead time prod. - Layout designJITPull system - Kanban - Mitsusumashi - Store - Reserved seatTAKT Time Production - Standard work sheet - Standard work combination sheetTPMFlow Production - One Piece Flow - Low Cost Autom. - U-shaped cell, AGV -Jidohka - Poka Yoke - Dedicated line - Set up KAIZEN (SMED)Autonomous maintenance - Cleaning - PLS - Cleaning/Checking Standards, Inspection - Auton. Process-Inspec. - Standardization - Complete Self-managementTQM5S - Seiri - Seiton - Seiso - Seiketsu - Shitsuke
20Batch JIT Batch Production vs. JIT Production (1) No takt time Work to takt timeLarge inventorySmall inventory(eventually one-piece)Isolated islandsFlow productionPush schedulingPull schedulingNo-standard inventoryStandard inventoryLarger, faster and special equipmentEven paced equipment(Takt time synchronised)
21Batch JIT Batch Production vs. JIT Production (2) Less frequent set-up changesMore frequent set-up changesOne person per machineOne person for many machinesSingle skill operatorMultiple skill operatorSitting workStanding and walking workAdvance production allowedAdvance production not allowedQuality control grouping,Sampling inspectionAll number inspection
22When forecast is discarded “We have a more efficient operation anda cost structure that is roughly half thatof other companies in our industry”“We don’t rely on forecasts”Michael Dell
23Two types of production systems TraditionalMassProductionLeanProductionStarts from forecastStarts from customer ordersBuilds inventoriesDoes not allow inventoriesProductionInventoryCustomerProductionCustomerForecast
24- The learning organization - Respect for people The Toyota Way 1- The learning organization- Respect for people- Education & training- Challenging spirit- Challenging management (Oh, NO! - System)- KAIZEN, Toyota’s DNA
25- Long term perspective - Genchi (Gemba) Gembutsu - Do it right away The Toyota Way 2- Team work- Quality First- Long term perspective- Genchi (Gemba) Gembutsu- Do it right away- Muda elimination
26Advantages of shortening the flow Improve qualityShorten lead time and realize prompt deliveryReduce inventory and stagnationUse minimum resourcesSimplify management(Less managerial and administrative intervention)Realize minimum cost and maximum profit
27When the Flow is shortened Quality automatically improvesDelivery automatically improvesCost automatically goes downand bringsBig Profit!
28Conditions for minimizing the flow Standardization5SVisual ManagementMUDA EliminationReorganizing Management StructureBuilding KAIZEN® Culture
29Christopher Columbus´ School of Management When he set out, he didn’t know where he was goingWhen he got there, he didn’t know where he wasWhen he returned, he didn’t know where he had beenHe did it all with borrowed capital
31The three Flows Material Flow Information Flow Cash Flow $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$
323 Conditions to Create a Pull System FlowSynchronizationLeveling
33Who manages the Flow?…Let the flow manage the processes, and not let management manage the flow.(Taiichi Ohno)
34What is your current status? FSL Checklist● Is tact time employed as a basis of production?● Is standardized work employed?● Are all processes physically andlogistically connected ?● Is one-piece flow practiced?● What is the current level of Five S?
35Q1 The FSL Checklist Logistics People Quality Equipment Management OEE Value StreamLogisticsQualificationPeopleStabilizedQ1QualityProcessesOEEImprovementEquipmentLeadershipPerformanceManagement
36Examples of logistic checkpoints Logistic checkpoints Tact timeFive SThree logistic principlesOne pieceflowProduction control boardElimination of Muda. Muri and MuraLogistic checkpointsNo isolated islandsNo conveyersStandard workSeparation between man and machineVisual managementKanbanStandardization
37Tools come first and problems second? Tools & problemsTools come first and problems second?orProblems come first and tools second?
39Proprietary technology vs managerial Technology Common Misconceptions by Management (1)Proprietary technology vs managerial TechnologySet policy and results will followTrain employees and Gemba improvesRely on sophisticated tools instead of common senseBelieves Gemba will ask “What is in it for me?”
40Quality is quality manager’s job Common Misconceptions by Management (2)Quality is quality manager’s jobEfficiency is industrial engineer’s jobCost cutting, not cost managementKAIZEN without focus and targetsDo not go to gemba
41Innovation versus Kaizen The West versus JapanInnovation versus KaizenKaizenInnovationThe WestJapan