QUOTE OF THE DAY

1
QUOTE OF THE DAY

• It is very hard for people to get involved in
  improving or standardizing their own processes if
  they feel threatened with a negative impact on
  their job security
• Masaaki Imai
• Kaizen Institute

2
QUOTE OF THE DAY

• The workers must have the absolute trust that
  management will take care of the worker and have
  a job for him(her) even if revision of the
  standard renders the worker no longer necessary
  at that process
• Masaaki Imai
• Kaizen Institute

3
QUOTE OF THE DAY

• The day we think weve arrived is the day we
  should be replaced by managers of greater vision
• Jeff Bluestein
  VP, Engineering
  Harley-Davidson

4
One More Qoute of the Day

• Most companies today has the tendency to place
  too much emphasis on teaching knowledge, while
  disregarding group learning of fundamental values
  derived from common sense, self-discipline,
  order, and economy.
• Masaaki Imai Kaizen Institute

5
One More Qoute of the Day

• One does not manage people. The task is to
  lead people. The goal is to make productive the
  specific strengths and knowledge of each
  individual.
• Peter Drucker Claremont Graduate School,
  California

6
One More Qoute of the Day

• Today setup improvements are achieved through
  skill and large lot production. The concept of
  economic lot size is in use to counterbalance the
  effect of increasing inventories.
• Shigeo Shingo The creator of SMED system

7
One More Qoute of the Day

• The world has an acute shortage of competitive
  lean-production capacity and a vast glut of
  uncompetitive mass-production capacity.
• J. P. Womack, D. T. Jones and D.
  Roos The Machine That Changed the World

8
LEAN MANUFACTURING PARADIGM

• The term Lean Production is first coined by
  John Krafcik at International Motor Vehicle
  Program (IMVP) at MIT, in the 80s.
• The term was popularized by James P. Womack,
  Daniel T. Jones and Daniel Ross of IMVP at MIT,
  in their now world famous book The Machine That
  Changed the World, that was published in 1990.

9
LEAN MANUFACTURING PARADIGM

• Lean production is lean because it uses less
  of everything compared with mass production.
• Half the human effort in the factory
• Half the manufacturing space
• Half the investment tools
• Half the engineering effort
• Half the time to develop new products

10
LEAN MANUFACTURING PARADIGM

• It is difficult to give a precise definition of
  Lean manufacturing or leanness. However, there
  are some desirable characteristics of Lean
  Manufacturing we will talk about in this workshop.

11
A FACTORY IS LIKE . . .

• An orchestra
• Can you think of another analogy?

12
The Factory as an Orchestra

• Music
• Rhythm
• Tone
• Harmony

• Factory Operations
• Cycle time (takt time)
• Quality operation of each work center
• Line balance

13
The Factory as an Orchestra

• Music
• Rhythm in music drives the whole orchestra to
  synchronize with the swing of the conductors
  baton

• Factory Operations
• Cycle time (takt time)in a factory will drive
  the production line with a smooth, steady flow of
  goods

14
The Factory as an Orchestra

• Music
• Tone (not noise) is a beautiful sound coming out
  of the musical instruments at right decibels

• Factory Operations
• Quality work coming out of each work center at
  right amounts

15
The Factory as an Orchestra

• Music
• Harmony is the coordination of different sounds
  for pleasing the listeners

• Factory Operations
• Line balance or coordination of different
  operations to deliver high quality low cost
  products when the customers want them

16
The Factory as an Orchestra

• MusicHighly skilled musicians through extensive
  training with a score sheet and the conductor to
  participate and follow

• Factory OperationsHighly skilled workers
  through extensive training with standard work
  instructions and a Kaizen team and a leader to
  participate and follow

17
Integration

• The strategy development and execution process
  should become a much more interactive process
  among those who are involved.
• It should be integrated with day-to-day
  operations as the need to respond quickly to
  environmental changes increase.
• The lean manufacturing and continuous improvement
  should be an integral part of daily business.

18
Integration
19
Flexibility(in mass production)

• In many manufacturing organizations today
  flexibility is understood as sophisticated,
  computer controlled, automated, and expensive
  array of equipment grouped together. The purpose
  is to be able to manufacture small batches of
  different products quickly within the flexible
  manufacturing cell.

20
Flexibility(in lean manufacturing)

• In lean manufacturing, flexibility is
• the ability to anticipate the need to change and
• the ability to change or adopt to change
• changing market conditions
• changing technology
• changing demand pattern
• changing product mix
• changing delivery conditions
• changing customer needs

21
Flexible Organizations

22
Conventional vs. Lean Manufacturing
Operational Characteristics
23
Conventional vs. Lean Manufacturing
Organizational Characteristics
24
Road Map to Lean Manufacturing

• The journey to lean manufacturing is not an easy
  sailing. Any revolutionary change requires a
  large amount of energy and commitment of people.
• With the understanding of the need for change and
  with a clear vision of the future, we should be
  able to make it happen.

25
A Road Map for Lean Manufacturing Journey
26
Team work is at the Heart of Lean Manufacturing

• There are numerous examples at the factory floor
  verifying that no system will work unless
  consideration is given to the people involved.
• Systems make it possible people make it happen.
• The difficulty, however, is putting the elements
  of lean manufacturing approaches into practice by
  involving everyone to their maximum potential.

27
Team Work Basics

• Some people think the route to Lean Manufacturing
  can be traveled solely by project teams.
• While they are a crucial tool for the journey to
  lean manufacturing, they are only one dimension
  of the total package. There are basically six
  dimensions to lean manufacturing

28
Elements of Lean Manufacturing
29
Scientific Approach

• A scientific approach is really just a
  systematic way for individuals and teams to learn
  about processes. It helps making decisions based
  on
• data rather than hunches,
• to look for root causes of problems rather than
  reacting to superficial symptoms, and
• to seek permanent solutions rather than rely on
  quick fixes.

30
Tools of Scientific Approach

• Flow Charts
• Top-down flow chart
• Detailed flow chart
• Work flow diagram (spaghetti charts)
• Deployment charts
• Pareto Charts
• P-Q charts
• Cause and Effect Diagrams
• Time Plots

31
Tools of Scientific Approach

• Control charts
• Dot Plots
• Stem and leaf displays
• Check sheets
• Scatter diagrams
• and a host of other scientific visual aids.

32
Top Down Flow Charts
Educate and build the team
Investigate the process
Analyze data seek solutions
Clarify Goals
4.1 Study patterns 4.2 Explore alternatives 43.
Develop strategy for further
improvement
2.1 Start build team 2.2 Set ground rules 2.3
Discuss Improvements 2.4 Educate team members
about Kaizen and Lean manufacturing
1.1 Discuss mission statement 1.2 Create an
improvement plan
3.1 Describe the process 3.2 Localize
problems 3.3 Find root causes 3.4 Collect data
Take appropriate action
Closure
6.1 Evaluate team progress 6.2 Evaluate
results 6.3 Organize files 6.4 Update picture
book 6.5 Make presentations 6.6 Recommend
follow-up
5.1 Further improvements 5.2 Design and redesign
5.3 Standardize processes 5.4 Monitor
changes 55. Document progress
33
Detailed FlowchartProcess Control Procedure
Identify key product characteristics
Key characteristics in
control ?
Yes
Continue SPC Monitoring
No
Identify key process parameters and limits
No
Control for 5 runs or 30 days?
Yes
Parameters stable?
Yes
No
Process Capability Procedure
Develop plans to control parameters
34
Material Flow in Process-Oriented Layout
(spaghetti chart)
35
Deployment Chart
36
Pareto Chart
37
Cause-and-Effect Diagram
38
Time Plot
Sales history
39
Control Chart
Number of defectives 3/28/2000
40
Dot Plot
Number of orders received
? ? ? ? ? ? ? ? ? ? ? ?
? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?
?
1 2 3 4 5 6 7 8 9 10 11 12
41
Stem and Leaf Diagram
Sample Process Times in seconds (21 observations)
8 3 7 4 5 8 6 3 9 9 5 7 6 0
2 4 4 6 1 9 6 3 8 5 3 2 1 5 0
42
Scatter Diagram
Salt Content (mg)
1.0
.9
.8
.7
.6
.5
10 12 14 16 18 20 22
24 26
Minutes in Bath
43
Tools for Team Decisions

• Brainstorming
• Give everyone a minute or two to think
• Encourage everyone
• There is no silly idea
• Wish and wonder
• No discussion during brainstorming
• No judgement, no criticism
• Use analogies and others ideas
• Use flipcharts for clear visibility
• Allow a team member write down all ideas on a
  flipchart
• The facilitator enforce the ground rules

44
Tools for Team Decisions

• Multivoting
• Generate a list of items and number each
• Combine similar items
• If necessary renumber them
• Have all members write down several items for
  further discussion (each should select about 1/3
  of the total)
• Tally votes
• Eliminate items with few votes
• Repeat the last three steps as many times as
  necessary until only a few items remain
• Select the obvious favorite for detailed
  discussion

45
Tools for Team Decisions

• Nominal Group Technique
• Generate a list of items and number each
• Combine similar items
• If necessary renumber them
• If there are more than 50 items use Concept
  Screening Technique to reduce them to fewer than
  50
• Give each participant from 4 to 8 cards
• Have them write one item per card with an
  assigned value to the item (most is 8 for 8 card
  case)
• Collect cards tally results and display them in a
  Pareto Chart
• If the item with the largest weight sum is
  accepted by the group the process is over.
  Otherwise, repeat after eliminating the
  least-weight items

46
Concept Screening Matrix

• List all attributes the concepts will be
  evaluated on
• Select one concept that represents a run of the
  mill concept.
• Compare each concept against the reference
  concept with respect to each attribute.
• A concept receives a if it is superior to
  reference concept with respect to that attribute
  alone.
• A concept receives a- if it is inferior to the
  reference concept with respect to that attribute
  alone.
• A concept receives a0 if it is equal to the
  reference concept with respect to that attribute
  alone.

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Concept Screening Matrix
Potential Candidates for further Discussions
48
Concept Screening Matrix

• Note that the reference concept always get
  zeroes for all attributes. Remember, each concept
  idea is compared against the reference concept.

49
Concept Scoring Matrix

• List all attributes the concepts will be
  evaluated on and assign 1-5 importance rating to
  each attribute
• Select one concept that represents a run of the
  mill concept.
• Compare each concept against the reference
  concept with respect to each attribute.
• A concept receives a4 or 5 rating if it is
  superior to reference concept with respect to
  that attribute alone.
• A concept receives a1 or 2 rating if it is
  inferior to the reference concept with respect to
  that attribute alone.
• A concept receives a3 rating if it is equal to
  the reference concept with respect to that
  attribute alone.
• Compute total score of each concept by
  multiplying attribute importance rating with the
  corresponding concept rating and adding up
  column-wise.

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Concept Scoring Matrix
Potential Candidates for Further Discussions
51
Concept Scoring Matrix

• Note that the reference concept always get
  threes for all attributes. Remember, each
  concept idea is compared against the reference
  concept.

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Choosing Players

• Active Participants
• Guidance Team, which supports the project team
  activities, secures resources, and clears path in
  the organization.
• Team Leader, who runs the team, arranging
  logistical details, facilitating meetings, and so
  forth.
• Kaizen Advisor, a person trained in scientific
  approach, lean manufacturing, Kaizen and in
  working with groups, who helps keep team on track
  and provides training as needed.
• Project Team Members, the people who form the
  bulk of the team, who carry out assignments and
  make improvements .

53
Choosing Players

• Guidance Team
• Three to six members
• Diverse skills and resources
• Have a stake in the chosen process
• With authority to make changes in the process
  under study
• With clout and courage

54
Choosing Players

• Guidance Team (contd)
• Identifies project goals
• Prepare mission statement
• Determine needed resources
• Select the team leader
• Assign Kaizen advisor
• Select the project team

55
Choosing Players

• Guidance Team (contd)
• Meets regularly with the project team
• Develops and improves systems that allows team
  members to bring about change
• When necessary, represents the interests of the
  team to the rest of the company
• Insures that changes made by the Kaizen team are
  followed up implements changes the project team
  is not authorized to make.

56
Choosing Players

• Team Leader
• Contact Point for communication between the team
  and the rest of the organization
• Official keeper of the team records, formally
  responsible for documenting the project
• Is a full-fledged team member
• Allows and encourages active participation of
  other members in the Kaizen activities
• Retains authority as a manager or supervisor

57
Power-Sharing Between a Kaizen Advisor and a Team
Leader
Kaizen Advisors Role
Team leaders role
58
Choosing Players

• Kaizen Advisor
• Focuses on the teams process more than on its
  product
• Assists the team leader in project planning
• Works with the team leader for planning the
  upcoming meetings
• Continuously studies Kaizen and continuous
  improvement principles helps explain these to
  the rest of the team
• Helps facilitate the use of scientific methods
• Helps the team in collecting data
• Prepares teaching modules on data collection and
  data analyses
• Helps project teams design and, sometimes,
  rehearse presentations to management

59
Choosing Players

• Team Members
• Should be selected from volunteers
• Should see the project assignment as very high
  priority task
• Actively work with the team, participate on all
  aspects of team activities, attend all meetings
• Carry out their assignment between meetings
  including interviews, observing processes, data
  collection, charting, writing reports, etc.
• Should own the project

60
Guidelines for Productive Meetings

• Use Agendas including
• The agenda topics
• The presenters
• A time guideline
• Item type (discussion, deliverable, decision, or
  announcements)
• Should list following activities
• Warm-ups (activities to get into the mood)
• A quick review of the agenda
• Breaks for long meetings
• Meeting evaluation

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Guidelines for Productive Meetings (contd)

• Have a Facilitator
• To keep the discussion focused on the topic and
  moving along
• Intervene if necessary
• Tactfully prevent anyone from dominating the
  meeting or being overlooked
• Bring discussion to a close
• Ensure proper time management
• Take minutes
• Draft Next agenda
• Evaluate the meeting
• Avoid all unnecessary interruptions

62
Five Crucial Improvement Effort Activities

• Maintain communications
• Fix obvious problems
• Look upstream (you may not be it!)
• Document progress and problems
• Monitor changes

63
Learning to Work Together

• Undercurrents in team dynamics
• Personal identity in the team
• Relationship between team members
• Identity with the organization
• Stages of Team Growth
• Stage 1 Forming
• Excitement, anticipation, and optimism
• Pride in being chosen as a team member
• Initial tentative attachment to the team
• Suspicion, fear, and anxiety about the job ahead

64
Learning to Work Together

• Stage 1 Forming (continued)
• Attempt to define the task and decide how it
  will be done
• Attempt to define acceptable group behavior and
  how to deal with group problems
• Decisions on what information to be gathered
• Lofty, abstract discussions of concepts and
  issues, or impatience with these discussions
• Difficulty in identifying relevant problems
• Complaints about the organization and barriers to
  the task
• These are all perfectly normal human behavior at
  this stage.

65
Learning to Work Together

• Stage 2 Storming
• Resistance to the task and to Kaizen improvement
  approaches others are comfortable using
• Sharp fluctuations in attitudes abut the project
  and its chance of success
• Arguing among members
• Defensiveness and competition, factions and
  choosing sides
• Questioning the wisdom of the selection of this
  project and the team members
• Establishing unrealistic goals concern about
  excessive work
• A perceived pecking order disunity, increased
  tension, and jealousy
• They are just beginning to understand each other.

66
Learning to Work Together

• Stage 3 Norming
• A new ability to express criticism
  constructively
• Acceptance of membership in the team
• Relief that it seems everything is going to work
  out
• An attempt to achieve harmony by avoiding
  conflict
• More friendliness, confiding in each other, and
  sharing of personal problems discussing the team
  dynamics
• A sense of team cohesion, a common spirit and
  goals
• Establishing and maintaining team ground rules
  and boundaries (the norms)
• They are able to at last start making significant
  progress.

67
Learning to Work Together

• Stage 4 Performing
• Better insight into personal and group processes
• Better understanding of each others strengths
  and weaknesses
• Satisfaction at the teams progress
• Constructive self change
• Ability to prevent or work through group problems
• Close attachment to the team
• Increased, quality team output
• This stage may come after just a few meetings or
  it may take a few months. Dont panic. With
  patience, they will become productive Kaizen
  teams.

68
Ten Common Problems

• 1. Floundering
• 2. Overbearing Participants
• 3. Dominating Participants
• 4. Reluctant Participants
• 5. Unquestioned Acceptance of Opinions as Facts
• 6. Rush to Accomplishment
• 7. Attribution of motives for behavior
• 8. Discounts of individuals comments
• 9. Wanderlust Digression and Tangents
• 10. Feuding Team Members

69
Team Building Activities

• Warm-Ups
• Team member introductions
• Paired introductions, one-on-one interviews
• Flipchart introductions
• Talk about first job
• Background
• Superlative adjective to describe the team
• Team name and logo design
• Hopes and concerns
• What do you want for yourself out of this?
• Member mapping on the factory layout

70
Team Building Activities

• Warmups (contd)
• Group conversation starters
• Anybody will work hard if.
• People who run things should be .
• A rewarding job is one that .
• Every winning team needs
• etc.
• Many group games including simulation closely
  related to their project
• Developing a house of quality for a simple
  product by defining customer needs and product
  specifications .

71
Team Building Exercises

• Disruptive Group Behavior
• Introduce the exercise
• Brainstorm
• Select one behavior
• Discuss types of responses to disruptive behavior
• Discuss possible responses to this behavior
• Review the team decisions
• Repeat for another disruptive behavior, if needed
• Critique

72
Team Building Exercises

• The Responsibility Matrix
• Identify project tasks
• Meeting responsibilities
• Project responsibilities
• Education/training responsibilities
• Create and fill the Deployment (responsibility)
  Matrix
• Discuss the individual assignments

73
Team Building Exercises

• Quality Function Deployment (QFD)
• Present a simple consumer product
• Define Customer Needs
• Rate customer needs for importance
• Translate customer needs to product
  specifications
• Develop House of Quality (HOQ) matrix
• Populate HOQ
• List competing products
• Benchmark competitions
• Generate new product concepts
• Use Concept Screening and Concept Scoring
  Matrices for final concept selection

74
Team Building Exercises

• Taguchis Quadratic Quality Loss Function
• Present an expensive consumer product (wrist
  watch)
• Define Customer Needs in accuracy
• Sample the team for their return behavior for
  inaccurate performance
• Establish the quality loss due to returns
  including customer goodwill
• Calculate the total quality loss due to missing
  target product specifications (substitute quality
  characteristics)
• Estimate the amount of investment that can be
  afforded for improving quality
• Discuss how easy it is to afford quality
  improvement projects through savings from quality
  losses

75
Kaizen (Continuous Improvement)

• Kaizen means improvement. Moreover, Kaizen
  means continuous improvement in personal life,
  home life, social life, and working life. When
  applied to the workplace KAIZEN means continuing
  improvement involving everyone-managers and
  workers alike.

76
Kaizen (Continuous Improvement)

• Kaizen is a culture of sustained continuous
  improvement focusing on eliminating waste in all
  systems and processes of an organization. Kaizen
  transforms companies into "Superior Global
  Competitors."

77
Two Elements of Kaizen

• Improvement/Change for the better
• Ongoing/continuity

78
Cycle of Improvement
79
Kaizen Implementation Requirements

• Kaizen should be implemented by the
  lower/middle level management and workers, with
  the encouragement and direction from the top. The
  top management responsibility is to cultivate a
  Kaizen working climates and cultures in the
  organization.

80
Wet Blankets That Discourage Kaizen

• I am too busy to study it.
• It's a good idea, but the timing is premature.
• It is not in the budget.
• Theory is different from practice.
• Isn't there something else for you to do?
• I think it doesn't match corporate policy.

81
Wet Blankets That Discourage Kaizen (contd)

• It isn't our business let someone else think
  about it .
• Are you dissatisfied with your work?
• It's not improvement, it's common sense.
• I know the result, even if we don't do it.
• I will not be held accountable for it.
• Can't you think of a better idea?

82
Basic Tips for Kaizen Activities

• Discard conventional fixed ideas.
• Think of how to do it, not why it cannot be done.
  
• Do not make excuses. Start by questioning current
  practices.
• Do not seek perfection. Do it right away even if
  for only 50 of target.

83
Basic Tips for Kaizen Activities (Contd)

• Correct it right away, if you make mistake.
• Do not spend money for KAIZEN, use your wisdom.
• Wisdom is brought out when faced with hardship.
• Ask 'WHY?" five times and seek root causes.
• Seek the wisdom of ten people rather than the
  knowledge of one.
• KAIZEN ideas are infinite.

84
Ask Why Five Times

• Then you will go 5-level deep into your
  cause-and-effect diagram

85
Kaizen
Profit Management
Product Management
Cost Management
Quality Management
Prod./Matl
Information
Operations
Equipment
Standardization
Good House Keeping (5Ss)
Waste Elimination
Team Work Morale Enhancement
Self-discipline Visual management QC
Circles Suggestions
86
5 Ss of Kaizen (in Japanese)

• 1. Seiri Distinguish between the necessary and
  unnecessary and discard the later.
• 2. Seiton Arrange all items in an orderly
  manner.
• 3. Seiso Keep Machines and working environment
  clean.
• 4. Seiketsu Extend the concept of cleanliness to
  oneself and practice the above three steps.
• 5. Stihsuke Build self discipline and make a
  habit of engaging in 5S by establishing
  standards.

87
5 Ss of Kaizen (in the west)

• 1. Sort Distinguish between the necessary and
  unnecessary and discard the later.
• 2. Straighten Arrange all items in an orderly
  manner.
• 3. Scrub Keep Machines and working environment
  clean.
• 4. Systematize Extend the concept of cleanliness
  to oneself and practice the above three steps.
• 5. Standardize Build self discipline and make a
  habit of engaging in 5S by establishing
  standards.

88
5 Cs of Kaizen (in the west)

• 1. Clear Out Distinguish between the necessary
  and unnecessary and discard the later.
• 2. Configure Arrange all items in an orderly
  manner.
• 3. Clean and Check Keep Machines and working
  environment clean.
• 4. Conform Extend the concept of cleanliness to
  oneself and practice the above three steps.
• 5. Custom and Practice Build self discipline and
  make a habit of engaging in 5S by establishing
  standards.

89
Waste (Muda)

• Waste is anything other than the minimum amount
  of equipment, materials, parts, space, and
  workers time, which are absolutely essential to
  add value to the product.

90
The Seven Wastes Found in Manufacturing
1. Waste of Waiting time 2. Transportation
waste 3. Processing waste 4. Inventory
waste 5. Waste of motion 6. Waste from
overproduction 7. Waste from product
defects This is the list used by Toyota.
91
The Nine Wastes Defined by Cannon
1. Waste Caused by Work-in-Process 2. Waste
Caused by Defects 3. Processing waste 4. Waste
in Equipment 5. Waste in Expense 6. Waste in
Planning 7. Waste in Human Resources 8. Waste in
Operations 9. Waste in Startup
92
Peoples Time in a Typical Factory
93
Material Time in a Typical Factory
94
Machine Time in a Typical Factory
95
3 Ms

• MUDA In Japanese muda means Waste. However, it
  carries a much deeper connotation. In
  manufacturing Muda refers to any activity that
  does not add value.

96
3 Ms

• MURA In Japanese mura means irregularity.
  Whenever a smooth flow of work is interrupted in
  an operators work, the flow of parts or
  machines, or the production schedule, there is
  mura.

97
3 Ms

• MURI In Japanese muri means strenuous
  conditions for both workers and machines as well
  as for the work processes. Although muri does
  not imply mura or muda immediately, it will turn
  into one if left unattended.

98
12 Principles of Process Improvement

• 1. Organize the workplace
• 2. Develop Quick Setup
• 3. Eliminate transportation loss
• 4. Develop fixtures for one-touch placement and
  automatic ejection
• 5. Introduce multi-process handling
• 6. Synchronize process

99
12 Principles of Process Improvement (Contd)

• 7. Use transfer lot size of one
• 8. Introduce Jidoka (Autonomation) concepts
• 9. Introduce Poka-Yoke (mistake proof)
  Statistical process control
• 10. Eliminate machine troubles
• 11. Operate on Takt time (cycle time)
• 12. Standardize work procedures

100
Approaches to Process Improvement and Control

• Layout change
• Rabbit chase
• Linking feeder lines to assembly lines
• Tying isolated processes into the mainstream
  process
• Towards one-piece flow production
• Jidoka (autonomation)

101
Approaches to Process Improvement and Control
(Contd)

• Line stop concept
• Andon (trouble lights)
• Production control boards
• Poka Yoke (mistake proofing the process)
• Quality at the source
• Process capability
• Visual control

102
PDCA Cycle (Demings)

103
The Meeting Cycle

104
Standardize Do Check Act (SDCA) Cycle

105
Maintaining and Improving Standards

• Continuous improvement can only be achieved when
  the current work process has been stabilized by
  way of standards. The Standardize-Do-Check-Act
  (SDCA) cycle secures the status quo.
• If there are discrepancies or problems in
  production, consideration should be given to
  whether this is due to a lack of guidelines, or
  the existing guidelines not being adhered to or
  not being adequate.
• The current process can only be considered
  stable when standards have been introduced and
  are observed.

106
Maintaining and Improving Standards (Contd)

• In a continuous improvement process standards
  must be maintained and improved.
• Improvement is driven forward by the
  Plan-Do-Check-Act (PDCA) cycle whereby the
  management plans and stipulates not only the
  targets but also an action plan to bring about
  improvement.

107
Maintaining and Improving Standards (Contd)

• Once the plan has been implemented
  management must check whether the desired
  improvements have actually been achieved. In the
  fourth step the new operational processes are
  standardized so that the original problem is not
  repeated and the improvement is secured.

108
Maintaining and Improving Standards (Contd)

• Small working groups and quality circles
  describe similar Kaizen activities. The Kaizen
  story starts with a task being selected or with a
  specific company objective. Based on the current
  status, data is collected and analyzed in order
  to improve operational processes by introducing
  new standards. The Kaizen story tool helps staff
  to analyze data and visualize solutions.

109
Visible Information in the Workplace

• Rejects are often not found until it's too
  late to do anything about them. Many machines do
  not have clear markings to show the tolerances
  within which they should be operated.
• Visual management makes it easy to understand
  operating standards, figures and processes.
• When information like this is shared openly, a
  culture of quality and responsibility is fostered.

110
Visible information in the workplace (Contd)

• In every workplace standards and targets are
  depicted with the help of diagrams, checklists,
  charts and signs in order to constantly measure
  quality.
• Any deviation from the normal state is displayed
  visually.

111
Visible information in the workplace (Contd)

• Thus, by means of visual management, you can
  visibly determine whether everything is in order.
  In this way workers and supervisors can control
  and improve the processes involved in production.
  

112
How Teams Can Solve Problems

• Good quality or minimal non-productive times
  indicate that a working group is on the right
  road. It creates a sense of pride and self
  confidence. Conversely, a high number of rejects
  and numerous customer complaints signal a need
  for action.

113
How Teams Can Solve Problems (contd)

• Negative trends are a warning signal and suggest
  that fundamental corrections must be made. Only
  if such data is transparent for all those
  involved is there an incentive to take action.

114
How Teams Can Solve Problems (contd)

• There is no such thing as the perfect workplace.
• Each and every workplace can be improved in some
  way.
• Kaizen teams, quality circles and other
  team-based improvement activities are an
  effective way for teams to analyze their working
  environment and improve their processes.
• The team members learn how to use statistical
  tools and become familiar with the art of problem
  solving in the workplace.

115
How Teams Can Solve Problems (contd)

• As soon as a problem has been solved, a new
  standard is put in place to maintain the
  improvement.
• This stops the problem recurring and enables the
  team to break out of the old habit of continuous
  fire-fighting.
• This leas us to the SDCA Cycle.

116
Standardize Do Check Act (SDCA) Cycle

117
Simplify, Combine, and Eliminate

• Simplify
• setup operations
• tool access
• instructions
• design
• distinction
• material handling
• operations

118
Simplify, Combine, and Eliminate

• Combine
• multi machine assignments
• load and unload operations
• separate functions and operations
• production and inspection

119
Simplify, Combine, and Eliminate

• Eliminate
• Waste of Waiting time
• Transportation waste
• Processing waste
• Inventory waste
• Waste of motion
• Waste from overproduction
• Waste from product defects

120
Exercise 1

• Each team write down at least three items for
  each M in your factory. (3 Minutes)
• MUDA In Japanese Muda refers to any activity
  that does not add value.
• MURA In Japanese mura means irregularity.
  Whenever a smooth flow of work is interrupted in
  an operators work, the flow of parts or
  machines, or the production schedule, there is
  mura.
• In Japanese muri means strenuous conditions for
  both workers and machines as well as for the work
  processes.

121
Exercise 2

• Complete the following sentence
• My manager will be willing to implement employee
  suggestions if it contributes to. goals.

122
Exercise 3

• Each team write down ways of helping employees
  acquire self discipline for Kaizen. (5 minutes)

123
THE BASIC ELEMENTS OF LEAN MANUFACTURING

• Elimination of Waste
• Equipment Reliability
• Process Capability
• Continuous Flow
• Material flows one part at a time
• Less inventory
• Reduced defects
• Lead time reduction
• Error proofing

124
THE BASIC ELEMENTS OF LEAN MANUFACTURING

• Stop the line quality system
• Kanban system
• Standard Work
• Visual management
• In station process control
• Level production
• Takt time
• Quick changeover

125
IMPLEMENTATION OUTLINE

• Map the value chain
• Current state map
• Future state map
• Set goals for the implementation project
• Develop an implementation plan
• Steering committee
• Model area implementation approach
• Stability
• Equipment reliability
• Process capability
• Continuous flow
• Synchronized production
• Pull system

126
IMPLEMENTATION OUTLINE

• Level production
• Current State map of the model area
• Collect current state information while walking
  the actual material and information flows
• Begin with a quick walk along the entire Model
  area value stream to get a sense of the flow and
  sequence of processes
• Start at shipping for material flow and work
  upstream. Start at order entry for information
  flow
• Collect data at each process
• Understanding the whole flow is what value stream
  mapping is about
• Compare value added time to total lead time
• Develop the future state map
• Determine Takt time
• Use continuous flow processing

127
IMPLEMENTATION OUTLINE

• Select the pacemaker production process
• Will we need the supermarket pull system in order
  to control production of upstream processes?
• Will we build a finished goods supermarket from
  which the customer pulls, or build directly to
  customer order?
• How will we level the production mix at the
  pacemaker process ?
• What process improvements will be necessary for
  the value stream to flow as the future state
  design specifies?
• Set goals
• From the gap between the current state map and
  future state map, estimate savings and set goals
  for lean manufacturing implementation process
• Lead time reduction
• Inventory reduction
• Productivity improvement

128
IMPLEMENTATION OUTLINE

• Floor space savings
• Quality improvement
• Implementation plan
• From the gap between the current state map and
  Future state map, develop a lean manufacturing
  implementation plan
• Steering committee
• Review goals, current state and future state
  maps, and the implementation plan with the
  steering committee.
• Obtain the steering committee's approval to
  proceed.

129
5S's REVISITED

• Seiri (Sifting) - Only needed items at work
  station
• Seiton (sorting) - arrange items at work station
• Seiso (Sweeping) - Cleaning work site
• Seiketsu (SpickSpan) - Providing a system to
  clean
• Shitsuke ( Sustaining) - Create awareness and
  discipline

130
Overwhelming ConsiderationCustomer First

• Traditional Approach
• SALES PRICE COST PROFIT
• Different Approach
• PROFIT SALES PRICE - COST
• Manageable Market derived Variable

131
Deming's 14 Points

• Deming's Fourteen Points is a summary of Dr.
  Deming's philosophy on quality management. It
  describes what is necessary for a business to
  survive and be competitive today. The fourteen
  points are
• Create constancy of purpose toward the
  improvement of products and services in order to
  become competitive, stay in business, and provide
  jobs.
• Adopt the new philosophy. Management must learn
  that it is a new economic age and awaken to the
  challenge, learn their responsibilities, and take
  on leadership for change.
• Stop depending on inspection to achieve quality.
  Build in quality from the start.
• Stop awarding contracts on the basis of low bids.
  
• Improve continuously and forever the system of
  production and service, to improve quality and
  productivity, and thus constantly reduce costs.
• Institute training on the job.

132
Deming's 14 Points

• Institute leadership. The purpose of leadership
  should be to help people and technology work
  better.
• Drive out fear so that everyone may work
  effectively.
• Break down barriers between departments so that
  people can work as a team.
• Eliminate slogans, exhortations, and targets for
  work force. They create adversarial
  relationships.
• Eliminate quotas and management by objectives.
  Substitute leadership.
• Remove barriers that rob employees of their pride
  of workmanship.
• Institute a vigorous program of education and
  self-improvement.
• Make the transformation everyone's job and put
  everyone to work on it.