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4 Agenda Voice of the Customer –Who, What, Where, When Daily Management –Genba –Basic Process Measures –5S+ Lego Exercise –What have you learned Wrap-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 them The customer sets the expectations Customers can be internal and external
6 Voice of 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: –Wants –Needs –Necessities The VOC Defines the Inputs From the Customer Perspective. VALUE CAN ONLY BE DEFINED BY THE CUSTOMER!
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 CustomerExpectation Cycle Time Customer Demands Capability Learning with Customers faster than the Competition
9 4 COMPLAIN When a Customer Complains
10 Customer Loyalty
11 Introduction to Daily Management Daily Management is the process to Manage Operations at the Genba There are Four Pillars (Components) of Daily Management 5S/SW are part of the “Lean Conversion” and are the minimum foundation to support DM DAILY MANAGEMENT Managing 5 KPI Drivers At the Genba Genba Visual Management Genba Problem Solving Genba Leadership Lean Conversion
12 Why Daily Management? Site Leader Operations Leader Value Stream Leader Front Line Performer of Work Policy Deployment Daily Management Kaizen 0% 50% 100% Time How Do You Spend Your Time
13 Daily Management Relationship to Policy Deployment Improvement Daily Mgmt Daily KAIZEN Year 0Year 1Year 2Year 3Year 4 Daily KAIZEN Policy Deployment Policy Deployment Once Breakthrough is achieved… process is standardized to Daily Management! Strategic Objective is Achieved! Mgmt Foundation for PD Policy Deployment
14 Policy Deployment – Flows from the top Global Regional Site Value Stream
15 Daily Management – The “HOW” “Lean Conversion” is critical first step to drive results at Genba Each Plant is at different point in the “Lean Conversion” Basic 5S/SW is the foundation of Lean Conversion Lean Conversion Daily Management VM KPIs Continuous Improvement Lean 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 In Daily Management, we manage these at the Genba (S) Safety (Q) Quality (D) Customer Service (I) Inventory (P) Productivity
17 Genba ■ Japanese term ■ “The place where the truth can be found." ■ “The value proposition" ■ “Go and See” ■ ”Learn to See”
18 ■ A Genba visit is often simply called a customer visit with unique characteristics. ■ Main purpose is to observe (in silence) ■Many eyes, cross-functional, one thing ■Normal from abnormal conditions ■Abnormalities should be apparent and visible ■Visual management ■ Occasionally question, rarely guide or direct Genba
19 ■ Often 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 questions ■Moments of truth ■In the spirit of Continuous Improvement Genba
20 ■Genba occurs in the context where the product or service is used. ■This allows direct observation ■Of problems that arise (or have occurred) ■Workarounds that are applied ■Capabilities or services that are never used (waste). Genba
21 ■Genba 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. Genba Outcomes
22 ■ 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 meeting ■ Common cases for a customer visit include: ■Rapidly Solve Problems ■Enhancing the features or usability of products (especially software) ■Enhancing the features of devices (especially ones aimed at very broad or very niche consumers) Genba (project or service)
23 Must Not Must Do Provide the right tools Set goalsCreate smoke screens GrovelBe clueless Give up Cover up Stress out Leaders Visual Guide Set the Strategy Genba the process Think of at least 7 ways to do better Kaizen your standard work Have a vision Observe the process Find the Waste Hide in the office Throw fits Blame the worker Blame the Measure Tamper with the Measure Throw People at Problems Flex Muscles Show Boat
24 Managing the Five KPI Drivers DAILY MANAGEMENT Managing 5 KPI Drivers at the Genba Genba Visual Management Genba Problem Solving Genba Leadership Lean Conversion u Safety u Quality u Delivery u Inventory u Productivity
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 Cell Define Target for facility and each Cell Implement Visual Management for Safety KPI Communicate and Train
27 5S Train 5S broadly and deeply Target cells for 5S kaizen Implement 5S Checklist and 5S Patrols in each Cell Monitor through 5S Checklist and Patrols and take Corrective Action DEFINITION: 5S: A process to ensure a clean, orderly, safe and productive workplace.
28 Associate Involvement Each associate (operator/front line leader) must understand Safety Concerns and what their responsibility is to prevent and avoid Must have Safety KPI targets and actual posted Associates must be actively engaged with preventing accidents and unsafe conditions
29 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. S ort S et in Order S hine S tandardize S ustain
30 SORT (Organization) Clearly distinguish needed items from unneeded items and eliminate the later SET IN ORDER (Orderliness) Keep needed items in the correct place to allow for easy and immediate retrieval STANDARDIZE (Standardized Cleanup) This is the condition we support when we maintain the first three 3S’s SHINE (Cleanliness) Keep the work area swept and clean SUSTAIN (Discipline) Make a habit of maintaining established procedures Benefits Improved Safety Promotes Teamwork Improved Quality Reliable Delivery Lower Cost Reduces Breakdowns Improved Moral 5S
31 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. Benefits Improved efficiency Workplace visual controls Improved quality Workplace ownership and pride Improved safety and work environment Why Do 5S Plus? 5S has proven to reduce waste and cost
33 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 5S System
34 Before After Machine Shop
35 Before After Cell Workstation
36 Plus – Safety All changes made during the implementation of 5S should be done with safety in mind An area that actively sustains 5S promotes a safe work environment Perform job safety analysis, set goals and targets, and continually monitor performance Safety Always!
37 5S Checklist
38 Managing the Five KPI Drivers DAILY MANAGEMENT Managing 5 KPI Drivers at the Genba Genba Visual Management Genba Problem Solving Genba Leadership Lean Conversion u Safety u Quality u Delivery u Inventory u Productivity
39 “Symptoms” Is Your “Real Place” Currently… Large team of inspectors (10%) (Receiving, 1 st piece, Final Part, Finished Goods) All inspection treated as indirect labor As material received, detailed receiving inspection performed Prior to parts being run, the set-up and first piece have to be signed off by an inspector Before parts go into stockroom, all material must undergo product inspection As finished goods complete, inspectors test and inspect the product again Quality Manual and Procedures available but not known to people on shop floor
40 Quality Establish process inspection; identify what to check, when to check, and how to check Train operators and quality technicians Establish statistical process control (SPC) charts as appropriate Where assembly cells are established: Put test and equipment in the cell Identify all points where checks/inspections are needed (Standard Work Sheet) Set up scrap bins as necessary PRODUCTPROCESS Goal is quality at the source
41 S : ? P : ? C : ? So, Not Really New, but still efficient… ■Date of birth: 1920’s - Western Electric / Dr. Walter Shewhart ■Used to identify controlled & uncontrolled variation, also known as common & special causes of variations ■Tries to find the process signals in all of the noise ■Uses control charts as main tool S = Statistical techniques used to examine process variation P = Process, ANY Process C = Control: Controlling the process through active management
42 SPC Example Assumption Is Not Always A Good Approach 2 3 Scrap Level (%) 1 J F M A Party Time ■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”. APRIL…
43 A Turn For The Worse….. Summer Vacation Effect? J F M A M J J Manager wants to take back award ■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!” Scrap Level (%) JUNE…
44 Scrap War Christmas Preliminary Effect ? J F M A M J J A S O N D No more “Soft Management” ■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. Scrap Level (%) NOVEMBER…
45 Scrap: A Life of It’s Own? No Celebration? ■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” J F M A M J J A S O N D J F M A M J Scrap Level (%) JUNE… A year later…
46 Let’s look at it with SPC eyes… Observe, Analyze, Understand, Then Decide… J F M A M J J A S O N D UCL J F M M J J A S O LCL Scrap Level (%) ■Manager “ 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.”
47 Examples of Special Causes Unfortunately, There Are So Many… Process Response Time ■Special causes are assignable and can include: Weather (season, time of day) Lighting Conditions Machine Type Machine Age Maintenance Supplier Operator Shift Supplier Material Lot etc… Special causes
48 Built in Quality Checks Have operators/ assemblers doing the inspection Need to build quality into the cell and process Watch calibration and sensitivity of equipment in the cells
49 Poke-yoke Where appropriate and needed build mistake- proofing into the process If you have a toolroom, take advantage of their skill- set and creativity
50 Measure Quality Results Every Day 1 st pass inspection by cell (# of defect/total production) normally expressed in PPM. Roll up yields can also be used. Make sure process is kept simple Review control charts and re-establish control limits as needed. Returns from customers measured in PPM Scrap $ Visual Bins normally red labeled “Scrap” Simple means that anyone can understand
51 Address Issues with Necessary Tools Identify issues through KPI performance Consider volume, customer expectation, and impact when selecting projects Pareto issues and select Problem Solving tool needed Push process down. Have cell leaders, value stream leaders, and manufacturing engineers working with operators to improve If 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 information Keep all associates involved with improvements and expectations
52 Managing the Five KPI Drivers DAILY MANAGEMENT Managing 5 KPI Drivers at the Genba Genba Visual Management Genba Problem Solving Genba Leadership Lean Conversion u Safety u Quality u Delivery u Inventory u Productivity
53 “Symptoms” Is Your “Real Place” Currently… Commitments not made Lead times too long Past due dollars high Customer Service Dept. receiving many calls Customers waiting on phone and hanging up Hedge orders happening Operations spending lots of time furnishing Customer Service with promise dates (which don’t happen) Schedules changing daily and/or hourly Workbook Pg 17
54 On Time Delivery (OTD) ■ On-time delivery is measured based on customer requested date with the three following rules –Oldest 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 appropriate –All 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% OTD Plant 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 57.55%?, How many 68.4%?
57 Past Due ■ Past due is defined as the monetary value of all orders with a customer requested due date earlier chronologically than the current date All Sales / Deliveries With A Requested Delivery Date Earlier Than Today!
72 Understand and be able to determine where takt time comes from Relate takt time to your process Understand the difference between takt time and cycle time Understand the basics of cycle time analysis including the time observation form Takt Time
73 The time requirements to make your customer happy Takt Time * The periods of time must be consistent (shift, day, week…) Net time of operation per period* Customer requirements per period* Divided by Proportion of daily production (in seconds per piece) Production is equal to the customer demand
74 The periods of time must be consistent Example Calculation 50” For one shift per day: Takt Time = Customer Requirements/Period 540 Net Time of Operations/Period = 450 = 0.83 min Takt Time = 540 Units / day ÷ 20Amount of working days/month 10,800Monthly Requirements (units) Customer requirements Cleaning: 10 minutes Break: 10 minutes Operation per shift 480Shift: 480 minutes Net time Net time of operation * 60 = 50 sec
75 Cycle Time is different from Takt Time Cycle Time Machine Cycle Time Operator Cycle Time Machine Automation Time Inspection Pack Delay Unload / Load / Start T/T
76 Bar Chart of Takt Time Vs. Cycle Time Time Operation Number Takt Time = 50 sec Operation Cycle Time = 150 sec Number of Operations = Operation Cycle Time Takt Time = 150 sec 50 sec 3 Op = Bar graphs visually show balance of operations
77 Bar Chart of Takt Time Vs. Cycle Time Visual reference of operation cycle time and takt time of a specific cell Determine the suitable number of operators (operations) necessary for a line or cell Show what is necessary to balance the line Using this tool provides:
78 Perform Cycle Time Analysis Observe tasks and group into small elements Establish lowest repetitive cycle time by operator Use to create standard work
79 Time Observation Form No Observation Detected Collect real data on the process
80 Time Observation Form Omitted Observations Lowest and Repeatable Observation Times Consistency 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 Tool 85.0%Overall OEE 99.9%Quality 95.0%Performance 90.0%Availability World ClassOEE Factor 85.0%Overall OEE 99.9%Quality 95.0%Performance 90.0%Availability World ClassOEE Factor data points on each shift Need to collect these 4 A Little Data Collection Can Lead to Big Opportunities for Improvement !
84 OEE Example 1 - Solution ■ Availability: Planned Production time: 480 – 30 = 450 minutes Shift 8 hrs X 60 min = 480 minutes 2 breaks X 15 min = 30 minutes, Lunch is unpaid = 0 Downtime = 37 minutes Now it is Obvious Where to Start Improvements! Availability = 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 minute Processed Amount = 68 tests Actual Operating time = Planned Production time- Downtime = = 413 minutes Perf Eff = Processed Amount / Actual Operating Time (68/ 413) Ideal Cycles per minute (0.25) =.659 X 100 = 65.9% RQP = Processed Amount – Defect Amount ( 68-8) Processed Amount 68 =.882 X 100 = 88.2% ■RQP:Processed Amount = 68 units Defects = 8 OEE = Availability X Performance Efficiency X RQP = 53.3%
92 Daily Management Visuals…Standardized Format Mandatory to use before going to next level of DM Visuals “Cell scorecard at the end of the cell indicates how the team is doing versus customer needs” “At a Glance” view of Performance “Everyday Kaizen” Countermeasures taken at Cell Level Pareto of issues
93 Daily Management Visuals…Hourly Scorecard
94 Daily Management Visuals…Standardized Format
103 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. Genba – Leadership Style
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 facts –This 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.