4 Agenda Voice of the Customer Who, What, Where, When Daily Management GenbaBasic Process Measures5S+Lego ExerciseWhat have you learnedWrap-up/Questions
5 Who are the customers? The customer is the one being served A customer is someone looking for something to be provided to themThe customer sets the expectationsCustomers can be internal and external
6 Voice of the Customer VALUE CAN ONLY BE DEFINED BY THE CUSTOMER! VOC Must be surveyed, recorded and used as a key input to Quality Function Deployment activities and Continuous Improvement projects.The VOC has the:WantsNeedsNecessitiesVALUE CAN ONLYBE DEFINEDBY THECUSTOMER!The VOC Defines the Inputs From the Customer Perspective.
7 The Voice of the Customer Let’s define wants, needs and necessities:Wants: Customers overtly state that they want their product to do or perform.Needs: These are statements that are more urgent than the wants of the customer.Necessities: These are statements that are driven by legal or regulatory requirements.Capture VOC Early To Prevent “Scope Creep”
8 The Learning Curve Learning with Customers faster than the Competition ExpectationCustomerCycle TimeDemandsCapabilityLearningsLearning with Customers faster than the Competition
9 When a Customer Complains The quality mushroom4COMPLAIN
11 Introduction to Daily Management Daily Management is the process to Manage Operations at the GenbaThere are Four Pillars(Components)of Daily ManagementDAILY MANAGEMENTManaging 5 KPI DriversAt the GenbaGenba Visual ManagementProblem SolvingGenbaGenba LeadershipLean Conversion5S/SW are part of the “Lean Conversion” and are the minimum foundation to support DM
12 How Do You Spend Your Time Why Daily Management?How Do You Spend Your TimeSite LeaderPolicy DeploymentOperationsLeaderKaizenValue StreamLeaderDailyManagementFront Line Performerof Work0%100%50%Time
13 Daily Management Relationship to Policy Deployment Once Breakthrough is achieved…process is standardized toDaily Management!StrategicObjective isAchieved!PolicyDeploymentPolicyDeploymentKAIZENImprovementKAIZENPolicyDailyDeploymentMgmtDailyKAIZENMgmtDailyFoundation for PDMgmtDailyDailyMgmtMgmtYear 0Year 1Year 2Year 3Year 4
14 Policy Deployment – Flows from the top GlobalRegionalValue StreamSite
15 Daily Management – The “HOW” “Lean Conversion” is critical first step to drive results at GenbaEach Plant is at different point in the“Lean Conversion”Basic 5S/SW is the foundation of Lean ConversionVMKPIsContinuousImprovementLean ConversionDaily ManagementLean Conversion Process and Daily Management Process are intertwined.To maximize improvement, you cannot do one without the other.
16 Five Key Performance Indicator (KPI) Drivers (S) Safety(Q) Quality(D) Customer Service(I) Inventory(P) ProductivityIn Daily Management,we manage these at the Genba
17 Genba Japanese term “The place where the truth can be found." “The value proposition"“Go and See””Learn to See”
18 GenbaA Genba visit is often simply called a customer visit with unique characteristics.Main purpose is to observe (in silence)Many eyes, cross-functional, one thingNormal from abnormal conditionsAbnormalities should be apparent and visibleVisual managementOccasionally question, rarely guide or direct
19 GenbaOften the client (user or operator) is asked to describe what he/she is doing while he/she is doing it (5 why’s, etc)Open ended questionsMoments of truthIn the spirit ofContinuous Improvement
20 GenbaGenba occurs in the context where the product or service is used.This allows direct observationOf problems that arise (or have occurred)Workarounds that are appliedCapabilities or services that are never used (waste).
21 Genba OutcomesGenba provides insight and deep understanding into the thought processes and problems which often reveal differences between the customer's mental model and the model of the developers or providers of the product or service.
22 Genba (project or service) The customer (user, or operator) will often express wishes or needs while working in context that would be forgotten or suppressed in a different context such as a structured interview or sales meetingCommon cases for a customer visit include:Rapidly Solve ProblemsEnhancing the features or usability of products (especially software)Enhancing the features of devices (especially ones aimed at very broad or very niche consumers)
23 Must Not Must Do Leaders Visual Guide Flex Muscles Blame the worker Give upGenba theprocessThrow fitsKaizen yourstandard workBlame the MeasureThink of atleast 7 waysto do betterShow BoatTamper with the MeasureCover upObserve the processFind the WasteHave a visionHide in theofficeThrow People at ProblemsStress outSet theStrategyCreate smokescreensProvide theright toolsSet goalsGrovelBe clueless
24 Managing the Five KPI Drivers DAILY MANAGEMENTManaging 5 KPI Drivers at the GenbaGenba Visual ManagementGenba Problem SolvingGenba LeadershipLean ConversionSafetyQualityDeliveryInventoryProductivity
25 “Symptoms” Ask Yourself - Is your “Real Place” currently… Managers rarely visit the shop floor.Safety Meetings take place in conference rooms.5S discipline not apparent.Questions about Safety performance, cell metrics cannot be answered by either managers or Associates.Safety issues present.Safety Improvement is stagnant (no target).Associates not engaged, not participative.Minimal cross-training is taking place in jobs with repetitive motion.No Repeatable and Robust process for maintaining equipment. Associates not engaged in this process.Kaizens do not account for potential Safety concerns.Employees have no voice or no mechanism of reporting safety hazards.
26 Safety Define Safety KPI for facility and to be managed in each Cell Define Jump off Point (Audit) for facility and each CellDefine Target for facility and each CellImplement Visual Management for Safety KPICommunicate and Train
27 5S Train 5S broadly and deeply Target cells for 5S kaizen Implement 5S Checklist and 5S Patrols in each CellMonitor through 5S Checklist and Patrols and take Corrective ActionDEFINITION:5S:A process to ensurea clean, orderly,safe and productiveworkplace.
28 Associate Involvement Each associate (operator/front line leader) must understand Safety Concerns and what their responsibility is to prevent and avoidMust have Safety KPI targets and actual postedAssociates must be actively engaged with preventing accidents and unsafe conditions
29 Sort Set in Order Shine Standardize Sustain 5S Defined 5S relates to the beginning of five terms that begin with the letter S that describe workplace practices conducive to visual control and workplace organization. It is one of the foundations on which lean manufacturing is built.SortSet in OrderShineStandardizeSustain5S relates to the beginning of five terms that begin with the letter S that describe workplace practices conducive to visual control and workplace organization. It is on of the foundations on which lean manufacturing is built.SortSet in OrderShineStandardizeSustain
30 5S Improved Safety Promotes Teamwork Improved Quality SORT(Organization)Clearly distinguishneeded items fromunneeded itemsand eliminatethe laterSET IN ORDER(Orderliness)Keep neededitems in thecorrect place toallow for easyand immediateretrievalSTANDARDIZE(StandardizedCleanup)This is the condition wesupport whenwe maintainthe first three 3S’sSHINE(Cleanliness)Keep thework areaswept andcleanSUSTAIN(Discipline)Make a habitof maintainingestablishedproceduresBenefitsImproved SafetyPromotes TeamworkImproved QualityReliable DeliveryLower CostReduces BreakdownsImproved MoralThe 5S system should be the foundation for any improvement activities. Without a clean well organized work area you can not expect other types of improvements to take hold.Some of the benefits are:Improved SAFETYPromotes TeamworkImproved QualityReliable DeliveryLower CostReduces BreakdownsImproved Moral
31 Why Do 5S Plus?To survive and grow as a business we must reduce cost. Implementing “preventive controls” can and will stop the generation of defects and poor results before they take place.BenefitsImproved efficiencyWorkplace visual controlsImproved qualityWorkplace ownership and prideImproved safety and work environment5S has proven to reduce waste and cost
32 8 Wastes Defects Overproduction Motion Material Movement Waiting InventoryProcessingNot utilizing Employee TalentThe 8 Deadly WastesOverproductionOverproduction is considered the worst of the 8 wastes because it helps to hide the other waste.Waitingwaiting is also a waste, but of the 8, this one is the most desirable because it is the easiest to identify.Transportationtransportation waste refers to the double and triple handling of parts moving them from one location to another.ProcessProcessing waste is any set that does not add value such as setups.ScrapThis is an obvious waste, any word that begins with “re-” is probably a waste ex: Re-work
33 The 5S System Seiri - Sort -Housekeeping. Separate needed items from unneeded items. Keep only what is immediately necessary item on the shop floor.Seiton - Set in Order - Workplace Organization.Organize the workplace so that needed items can be easily and quickly accessed. A place for everything and everything in its place.Seison - Shine - Cleanup.Sweeping, washing, and cleaning everything around working area immediately.Seiketsu - Standardize - Consistant.Keep everything clean for a constant state of readiness.Shitsuke - Sustain - Discipline.Everyone understands, obeys, and practices the rules when in the plant.The 5Ss were originally Japanese words that have since been translated in similar English terms.Seiri - Sort -Housekeeping. Separate needed items from unneeded items. Keep only what is immediately necessary item on the shop floor.Seiton - Set in Order - Workplace Organization. Organize the workplace so that needed items can be easily and quickly accessed. A place for everything and everything in its place.Seison - Shine - Cleanup. Sweeping, washing, and cleaning everything around working area immediately.Seiketsu - Standardize - Cleanliness. Keep everything clean for a constant state of readiness.Shitsuke - Sustain - Discipline. Everyone understands, obeys, and practices the rules when in the plant.
36 Plus – SafetyAll changes made during the implementation of 5S should be done with safety in mindAn area that actively sustains 5S promotes a safe work environmentPerform job safety analysis, set goals and targets, and continually monitor performanceSafety Always!
38 Managing the Five KPI Drivers DAILY MANAGEMENTManaging 5 KPI Drivers at the GenbaGenba Visual ManagementGenba Problem SolvingGenba LeadershipLean ConversionSafetyQualityDeliveryInventoryProductivity
39 “Symptoms” Is Your “Real Place” Currently… Large team of inspectors (10%) (Receiving, 1st piece, Final Part, Finished Goods)All inspection treated as indirect laborAs material received, detailed receiving inspection performedPrior to parts being run, the set-up and first piece have to be signed off by an inspectorBefore parts go into stockroom, all material must undergo product inspectionAs finished goods complete, inspectors test and inspect the product againQuality Manual and Procedures available but not known to people on shop floor
40 Goal is quality at the source PRODUCTPROCESSEstablish process inspection; identify what to check, when to check, and how to checkTrain operators and quality techniciansEstablish statistical process control (SPC) charts as appropriateWhere assembly cells are established:Put test and equipment in the cellIdentify all points where checks/inspections are needed (Standard Work Sheet)Set up scrap bins as necessaryGoal is quality at the source
41 S : ? P : ? C : ?S = Statistical techniques used to examine process variationP = Process, ANY ProcessC = Control: Controlling the process through active managementDate of birth: 1920’s - Western Electric / Dr. Walter ShewhartUsed to identify controlled & uncontrolled variation, also known as common & special causes of variationsTries to find the process signals in all of the noiseUses control charts as main toolSo, Not Really New, but still efficient…
42 SPC Example The factory scrap level is at a year low of 2%. APRIL…The factory scrap level is at a year low of 2%.Manager presents an award to the plant.Ceremony in the cafeteria: pizza and refreshments for all!“Everyone should be proud of what you’ve accomplished”.3Scrap Level (%)2Party Time1J F M AAssumption Is Not Always A Good Approach
43 A Turn For The Worse….. Three consecutive months of scrap increases. Manager wishes he could take back the award.Recognition has backfired.Instead of holding the gains, scrap went right back up.Manager decides: “This group just needs tough management!”JUNE…3Scrap Level (%)2Manager wants to take back award1J F M A M J JSummer Vacation Effect?
44 Scrap War Scrap rises to a value of 2.6%. Manager decides to take action.A “special meeting” is called to solve this problem once and for all.After a sound lecture on the importance of scrap, the manager leaves.Employees aren’t sure what to do. Besides, they have other metrics which have more importance. So… they do nothing.NOVEMBER…3Scrap Level (%)2No more “Soft Management”1J F M A M J J A S O N DChristmas Preliminary Effect ?
45 Scrap: A Life of It’s Own? JUNE…A year later…Manager has seen reduced scrap levels since the end of last year. “Things are looking-up!” (although nothing had been done to change the system).His takeaway: “A tough management style gets results!”Manager concludes: “Tough love makes things happen”3Scrap Level (%)21J F M A M J J A S O N DJ F M A M JNo Celebration?
46 Let’s look at it with SPC eyes… UCL3Scrap Level (%)21LCLJ F M A M J J A S O N DJ F M M J J A S OManager“ Hey, I made my decision based on data - How can I go wrong ?”YOU:“Your decisions were made from observing high and low points as signals. When In reality, it was all variation. Look at the data, there was no significant change in the process.”Observe, Analyze, Understand, Then Decide…
47 Examples of Special Causes Special causes are assignable and can include:Weather (season, time of day)Lighting ConditionsMachine TypeMachine AgeMaintenanceSupplierOperatorShiftMaterial Lotetc…Process ResponseSpecial causesTimeUnfortunately, There Are So Many…
48 Built in Quality Checks Have operators/ assemblers doing the inspectionNeed to build quality into the cell and processWatch calibration and sensitivity of equipment in the cells
49 Poke-yokeWhere appropriate and needed build mistake- proofing into the processIf you have a toolroom, take advantage of their skill- set and creativity
50 Measure Quality Results Every Day 1st pass inspection by cell (# of defect/total production) normally expressed in PPM. Roll up yields can also be used. Make sure process is kept simpleReview control charts and re-establish control limits as needed.Returns from customers measured in PPMScrap $Visual Bins normally red labeled “Scrap”Simple means that anyone can understand
51 Address Issues with Necessary Tools Identify issues through KPI performanceConsider volume, customer expectation, and impact when selecting projectsPareto issues and select Problem Solving tool neededPush process down. Have cell leaders, value stream leaders, and manufacturing engineers working with operators to improveIf on-going action required, develop corrective action plans or countermeasures. Post in cell.Document corrective actions with visual aids. Use photos to assist with quality informationKeep all associates involved with improvements and expectations
52 Managing the Five KPI Drivers DAILY MANAGEMENTManaging 5 KPI Drivers at the GenbaGenba Visual ManagementGenba Problem SolvingGenba LeadershipLean ConversionSafetyQualityDeliveryInventoryProductivity
53 “Symptoms” Is Your “Real Place” Currently… Commitments not madeLead times too longPast due dollars highCustomer Service Dept. receiving many callsCustomers waiting on phone and hanging upHedge orders happeningOperations spending lots of time furnishing Customer Service with promise dates (which don’t happen)Schedules changing daily and/or hourlyWorkbook Pg 17
54 On Time Delivery (OTD)On-time delivery is measured based on customer requested date with the three following rulesOldest orders are filled first (where possible) – i.e. once an order is missed it must be a priority to be filled over new “on-time” orders. (Missed orders are only counted against delivery on the day they are missed, not when shipped)Shipments missed due to Credit Holds “Count” as on-time delivery misses and should be highlighted in the pareto as appropriateAll parts on consignment at the customer are considered to be delivery “hits” if the consignment levels remain between the min and max. If the consignment level falls outside the min/max levels it is considered a delivery “miss.”A Measure of Performance Against Customer Request
55 On – Time Delivery Exercise Plant A ships 77 lines before they are due and 12 on the day they are due out of 121 total lines requested. What is the plant’s OTD?Plant B ships 10 orders that were on credit hold 2 days after they were to ship, 12 lines early, and 30 on the day they were due out of 65 lines requested. What is the plant’s OTD?Plant C ships 34 lines to the customer 1 day late, 12 lines two days late, 16 on the day the lines were due and 84 on-time. What is this plant’s OTD?
56 On-Time Delivery Solutions Plant A ships 77 lines before they are due and 12 on the day they are due out of 121 total lines requested. What is the plant’s OTD?( ) are on-time / 121 total lines = 73.5% OTDPlant B ships 10 orders that were on credit hold 2 days after they were to ship, 12 orders early, and 30 on the day they were due out of 65 orders requested. What is the plant’s OTD?( ) are on-time / 65 total lines = 64.6% OTD (remember orders late due to credit hold “count” as an OTD miss)Plant C ships 34 lines to the customer 1 day late, 12 lines two days late, 16 on the day the lines were due and 84 on-time. What is this plant’s OTD?You really can’t tell with the data given here. How many total lines were requested? Always seek complete information! How many of you said %?, How many 68.4%?
57 Past DuePast due is defined as the monetary value of all orders with a customer requested due date earlier chronologically than the current dateAll Sales / Deliveries With A Requested Delivery Date Earlier Than Today!
72 Takt TimeUnderstand and be able to determine where takt time comes fromRelate takt time to your processUnderstand the difference between takt time and cycle timeUnderstand the basics of cycle time analysis including the time observation form
73 Net time of operation per period* Customer requirements per period* Takt TimeProduction is equal to the customer demandProportion of daily production (in seconds per piece)Net time of operation per period*Divided byCustomer requirements per period** The periods of time must be consistent (shift, day, week…)The time requirements to make your customer happy
74 Example Calculation Net time Shift: 480 minutes 480 Operation per shiftBreak: 10 minutes-20-10Cleaning: 10 minutesNet time of operation450Customer requirementsMonthly Requirements (units)10,800Amount of working days/month÷ 20Units / day540Net Time of Operations/Period = = 0.83 minTakt Time =Customer Requirements/Period0.83 * 60 = 50 secFor one shift per day: Takt Time =50”The periods of time must be consistent
75 Cycle Time T/T Machine Cycle Time Machine Automation Time Unload / Load / StartInspectionDelayPackOperator Cycle TimeCycle Time is different from Takt Time
76 Bar Chart of Takt Time Vs. Cycle Time Operation Cycle Time150 sec50 sec3 OpNumber of Operations ===Takt Time60Takt Time = 50 sec50Time4030Operation Cycle Time = 150 sec2010123456789101112Operation NumberBar graphs visually show balance of operations
77 Using this tool provides: Bar Chart of Takt Time Vs. Cycle TimeUsing this tool provides:Visual reference of operation cycle time and takt time of a specific cellDetermine the suitable number of operators (operations) necessary for a line or cellShow what is necessary to balance the line
78 Perform Cycle Time Analysis Observe tasks and group into small elementsEstablish lowest repetitive cycle time by operatorUse to create standard work
79 No Observation Detected Time Observation FormNo Observation DetectedCollect real data on the process
80 Time Observation Form Observation Times Omitted Observations Lowest and RepeatableConsistency is key!
82 OEE: Operational Equipment Effectiveness Operational Equipment Effectiveness helps you see and measure a problem so you can fix it, and provides a standardized method of benchmarking progress.OEE is the framework for measuring the efficiency and effectiveness of a process, by breaking it down into three constituent components:Availability - takes into account Down Time Loss (events that stop planned production for an appreciable amount of time)Performance – takes into account Speed Loss (factors that cause the process to operate at less than the maximum possible speed, when running).Quality - takes into account Quality Loss (parts which do not meet quality requirements).Often it is more important to focus on the OEE Factors than the metric.Relentlessly Work to Eliminate OEE Losses
83 OEE – Calculation ToolNeed to collect these 4data points on each shift85.0%Overall OEE99.9%Quality95.0%Performance90.0%AvailabilityWorld ClassOEE FactorA Little Data Collection Can Lead to Big Opportunities for Improvement !
84 OEE Example 1 - SolutionAvailability: Planned Production time: 480 – 30 = 450 minutesShift 8 hrs X 60 min = 480 minutes2 breaks X 15 min = 30 minutes, Lunch is unpaid = 0Downtime = 37 minutesAvailability = Planned Production time – Downtime ( 450 – 37)Planned Production Time (450)= .918 X 100 = 91.8%Perf Eff: Ideal Cycles per minute = 15 test cycles per hour / 60 minutes = 0.25 test cycles per minuteProcessed Amount = 68 testsActual Operating time = Planned Production time- Downtime = = 413 minutesPerf Eff = Processed Amount / Actual Operating Time (68/ 413)Ideal Cycles per minute (0.25)= .659 X 100 = 65.9%RQP: Processed Amount = 68 unitsDefects = 8RQP = Processed Amount – Defect Amount ( 68-8)Processed Amount= .882 X 100 = 88.2%OEE = Availability X Performance Efficiency X RQP = %Now it is Obvious Where to Start Improvements!
92 Daily Management Visuals…Standardized Format “At a Glance” view of PerformancePareto of issues“Everyday Kaizen” Countermeasures taken at Cell Level“Cell scorecard at the end of the cell indicates how the team is doing versus customer needs”Mandatory to use before going to next level of DM Visuals
103 Genba – Leadership Style High proportion of a Genba Style leader’s time is spent in the Genba (with users) so that supervisors and leaders can be intimately involved in issues as they arise.Their presence informs their decision making and speeds resolution of problems.This attitude is driven by the belief that all customer value is created in the Genba and it is therefore the qualities of the Genba (Genbatsu) which will determine the success of the company.
104 Genbatsu (現物)“The actual product”:Mindset teaching that when there is a problem somewhere, one should get as close to the problem as possible before proposing a solution.By observing the actual process or problem at the actual place (Genba) where it is occurring, the problem solver is able to obtain actual data or factsThis will improve the chances for a better solution.This in in contrast to most Western thinking in which managers make decisions in a remote location (like behind a desk), armed only with second hand information from others.