Kaizen Synopsis 120

7/31/2019 Kaizen Synopsis 120

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FosecoMr.David Huges, MD

Our Vision:The supplier to the foundry industry providing greatest valueA highly respected company with which all stakeholders areproud to be associated with

Business Strategy:Key Strategic ObjectivesGood to great

KAIZEN Pillars of successSupply Chain EfficiencyLean OrganizationHigh Performance OrientationQuality SystemsProcess Orientation


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FosecoMr.David Huges, MD

KAIZEN is in line with our Values

Team workingContinuous ImprovementSHEEmpowermentHigh Performance

Employee FocusLead by Example

Critical new technique to take forward a number of our keyobjectives on the path from good to greatVery strong fit with out ValuesKaizen will become a natural part of the way the whole companyworks.Historically we have been looking at quantum leaps and bigdecisions


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Target:By end of the day:Some clarity on what is going to be involved

What changes in our approach to work is requiredWhat interventions (training workshops) are going to be

involved

By end of the year:Change in way of thinking and attacking problemsSeeing opportunities where none seem to exist


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= KAI = CHANGE

= ZEN = GOOD

(FOR THE BETTER)

= KAIZEN =CONTINUAL IMPROVEMENT

GEM = Real; BA = Place


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Top Management key note address

Introduction of participants

Brief Introduction of Kaizen Institute What is KAIZEN; relation to problem solving

What is going to be involved

Roadmap for the next year

Planning for the first GEMBAKAIZEN Workshop

Conclusion

Proposed Agenda


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What really is KAIZEN?

Extracting money by eliminating wastefrom process is Kaizen.Kaizen is process improvement:

which is significant (large)

done in strategically important areas

speedily

in sustainable manner

using Scientific data; not opinion. using Systematic Roadmap, Tools & Techniques under KAIZEN Paradigms resulting in Human Development


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What isyour job? Your job contains two parts:

Improve StandardsSet and Sustain Standards


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Time

Cost or Quality(parameter)

Good

Std

Problem(Sporadic) A Company dies

Problem solved:Sustenance of standard

Problem createdChronic (B)

Problem Solved:Improvement of standard


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Who should do KAIZEN

Kaizen done withoutmanagerial involvement

does not sustain.

Your Job is: Improvement of StandardsSet & Sustain Standards

Managers have more scope to doKAIZEN; not workers!


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A

UTONOMOUS

MAIN

TENANCE,5-S&

VisualManagement

SteeringCommittee

F

OCUSED

IMP

ROVEME

NT

Small Group Activity


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When there is a problem, what do we do?

What we do is:

1. We analyze, find root cause, take corrective action, and preventive2. Panic, concern,

Pl use verb nouncombination


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Problem Specifications (Symptoms)

Root Cause

Alternative Solutions (Countermeasures)

Decision (Selected Countermeasure)

Implementation

(PDCA)

Diagnostic Journey (1)

Solution Generating Journey (2)

Decision Making Journey (3)

Potential Problem Prevention Journey (4)

Easy! Just skip one of the steps

orUse ineffective technique in one of the steps

How to ensure thatproblem solving is ineffective?

Note: Doing fast is

not the same asskipping


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Problem Solving Approaches

Deployed (Brokendown) & One at atime

Deployed (Brokendown)

Grand compositeProblemDefinition

Compare pros andtake up cons inPotential Problem

Analysis

Compare prosonly

Weigh Pros &Cons

Decisionmaking

Attack muda (nonvalue adding

area); then mura& muri

Attack muda (nonvalue adding

area) first

Attack technicalarea (value

adding area) first

Paradigm

Crude Statistical &Backward thinking

RigorousStatistical(segregation ofeffects first)

Forward thinking(from cause toeffect)

Method ofData Analysis

Primary always &Secondary asrequired

Secondary dataOpinion of ExpertMethod ofDataCollection

OptimalSuggested inBooks

TraditionalBasis


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Problem Solving Approaches

Deployed (Brokendown) & One at a timeAggregated datafor problem

definition

Deploying Problem (Pareto)Defining Problem as gap

ProblemDefinition

Compare pros andtake up cons in

Potential ProblemAnalysis

Meetings offgemba

1. KAIZEN Decision Making& FMEA

DecisionMaking

Attack muda (nonvalue adding area);then mura & muri

Mass Production

Division of Labour

Info Technology

Departmentation

Demarcation

1. Single Piece Flow

2. Unification of work

3. Visual Management

4. AutonomousMaintenance

5. Responsibility overlap

Paradigm

Crude Statistical &Backward thinkingOpinions, QC 7tools, Statistical

techniques,knowledge

1. Muda identify2. Mura KDD, AM

approach

3. Muri - ergonomics

Methodof DataAnalysis

Primary always &Secondary as required

Value StreamMapping; BPR

Asking the Process(Learning to look)

Methodof DataCollection

OptimalNearest PitfallTechniqueBasis


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TOTAL SUPPLY CHAIN COST STRUCTURE PRODUCTION EXPENSES:

XYZ MAKING & PACKING XYZ MAKING & PACKING

Elements Elements

11 Electricity

264 OTHERS 31 Fuel Oil

3 Steam & Water

243 PRODUCTION EXPENSES

38 Wages/Salaries

3 Loss- Pkg. Material

402 PACKING MATERIAL

12 Loss- Raw Material 57 WIP24 Give Away - Packing

1351 RAW MATERIAL

50 Repairs & Maintenance

4 Internal Transfer

18 Other Materials

4 Packing Fee

27 Depeciation

2300 Total Supply Chain Cost

243 Production Expenses o

Kaizen Project 1

Kaizen Project 2


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Rejection36%

Rs18 crore($3.75million)per annum

Acceptedproduct

Others

ULMA NT50%

Holes

ThinSpots

Black Spots

In terms ofleading to

rejection

Mostserious

Drawn to scale

1%=Rs50lakh($100,000) pa

KAIZEN ApproachDeploying the ProblemDefining the Problem


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12/08/100

Loss70%

OEE

30%

Loss70%

OEE

30%

Loss

55%

OEE

45%

Loss

55%

OEE

45%

Eliminate purchase ofnew equipment

save USD 6 million

KAIZEN

Corporate Strategy:Doubling sales in Singapore


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Loss Tree(Finding Waste)

Calendar Time (525,600 min)Available Time

Operating TimeQuality Output

SundaysShutdown

Breakdown

Changeover Time

SpeedLoss

ShortStops

QualityLoss

OEE = Availability Rate X Performance Rate X Quality Rate

Availability Rate = Available Time / Calendar Time

Performance Rate = Operating Time / Available Time

Quality Rate = Quality Output / Output during operating time

Typical OEE is30~50%

S l ti f Th f KAIZEN


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12/08/100 2

Selection of Theme for KAIZENNarrowing down to the Most

ImportantIssue:

Loss70%

OEE

30%

Availability Loss

61%

Performance Loss

35%

4% Quality Loss

OEE Target 45%

Plan

Jan- Jun

Select for FocusedImprovement


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All Problems are universally defined as:

Gap between Expected and Actual Results.

Problem is always defined in terms of results; never in terms of causes.

Expected Result could be the Target Result.

Expected Result

Actual Result

Problem

Event chain

Root Cause


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Go to gemba andhave a good look.

Look for muda, mura, muri

Officer of Electircity company attending to customerGo to actual place of action (gemba) and observe


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Identifying & Eliminating Muda

a zen osop y:


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a zen osop y:Where does the saving

come from?

muda

All activity is eithervalue adding or non value adding.

There is nothing else.

K i


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KaizenPhilosophy

muda

K i


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Attack first

KaizenPhilosophy

muda


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DISTRICT TECHNICAL

OFFICER

DISTRICT

MANAGER

DISTRICT

ACCOUNTANT

REGIONAL

ENGINEER

JOB

COSTING

CUSTOMER

RELATION OFFICER

ELECTRICAL

CONTRACTOR

REG. MATERIAL &

TRANSPORT MANAGER

STORE KEEPER

CUSTOMER PREMISES

12

9

87

6

5

43

10

13

11

14

12


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CUSTOMER

RELATION OFFICER

COSTING, JOB CARD

REQUISITIONS CODING & SIGNING

DISTRICT TECHNICALOFFICERSTORE KEEPER

ELECTRICALCONTRACTOR

CUSTOMER PREMISES


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Setting Up Customer Account

DataCapture

DMOld Block

DTO

1

Estimator

234

5

6

New Block BPO

7

8

12

3

Actions after KAIZEN:DTO receives info from field.DTO fills data into CS 111 form.DTO fills meter no., CS111 no. etc., in registerDTO takes form to DM

DM verifies and approves by signingDTO picks up signed form from DMDTO sends form to data supervisorData supervisor cross checks serial numbers and signs in courier bookData supervisor allots it to data capture assistantData capture assistant enters data into system.


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Result of 3 Processes:plication for new service, connecting it, and setting up for billi

30 steps

15 steps

Obvious muda(wasteful activities)

removed

How muchmoney saved?

Sample calculationdone for

one process


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Achieved So Far: (This is DONE; it is not a mere recommendation)Savings: $$$,$$$/year for one KAIZEN project

Setting Up New Customer Account

Calculation of savings (forfeited revenue recoverable per annum):

Avg time for setting up of new account is 3 to 4 months beforeKAIZEN Avg time expected is 1 to 2 months after KAIZEN (depends on billing

cycle) Avg saving in set up time: 2 months Avg billing of customer in a month: 100,000 cedi

Avg no. of new customers/day (Kumasi alone): 30 No. of days per year: 250 Savings (forfeited revenue): 100,000 X 2 X 30 X 250 = 1,500,000,000

cedi For 4 regions (120 new connections/day): 6 billion cedi Assume 50% failure rate.

Savings (forfeited revenue recovered):3 billion cedi = USD 350,000/ yearwith 50% failure rate and from one projectalone.

(1USD=8,500 cedi)

CS 111


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All Problems are universally defined as:

Gap between Expected and Actual Results.Problem is always defined in terms of results; never in terms of causes.

Expected Result could be the Target Result.

Expected Result

Actual Result

Problem

Event chain

Root Cause


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Identifying & Eliminating Mura


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Effect (Problem)High Lead Time

MachineMaterial

Man Method

Breakdown

High operation time

Designed for batch loading

Not Available

Absent

Not Trained

M/C Utilization is the key measure

Long Waiting (WIP)

Batch Production


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02//Mat/Man Not

available

01/High Op Time

20///// ///// ///// /////Batch loading

03///Breakdown10///// /////M/C Util

18///// ///// ///// //High WIP

15///// ///// /////Batch Prodn

Occur FreqTally MarkCause

Check Sheet


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Leader : PAV

Member : PTP, KCK, RC, WLD, TU, NI, KP

BRAKEDOWN OF SOAP LINE 2 JAN-MAR 2000

100

24

48

71

81

90

95 9799 100

0

5

10

15

20

25

30

35

40

45

50

55

60

65

70

75

80

0

20

40

60

80

100

Pareto Analysis


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Keep asking WHY WHY WHY WHY WHY, till you feel satisfied at having

arrived at the root cause.

Mgt doesnot

understand

prodn sys

linkage

Prodnsystem

linkage not

understood

by mgt

IsolatedislandsMax m/cspeedM/Cdesigned

so

Batch Loadingof m/c

Training isbypassed

Productionsubverts

training

No trainingNewoperators

dont

know

Spillswhile

pouring

Oil onfloor

mopped

up

SawdustCons. High

Root

Cause

WHYWHYWHYWHYWHYProblem


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Taxonomy

Correlations

Cause-Effect

Progression of Knowledge- Goldratt Model


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Mura Case Studies


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KnownWaste GEMBAKAIZEN

Workshop

Small GroupActivityKaizen

SuggestionKaizen

Hidden

Waste

To be donethrough

Individual

Suggestions

CalledTeian

To bedone by

SmallGroup

Activity

To be done

byManageme

nt

Big Savings

Small savings

Moderate Savings

Deploying KAIZEN Projects

Improvement v/s Focused


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Paper does notburn in sunlight

Paper burns

Improvement Focused Improvement

Improvement v/s FocusedImprovement

GEMBAKAIZENWorkshopapproach


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Pre

workshopday

Day 1 Day 2 Day 3 Day 4 Day 5 Post

workshopday

PLAN DOCHECK

&ACTION

Collect Data

from gemba

Analyze Data(diagnose)

Confirm

diagnosisexperimentally

Start

Implementingcountermeasur

eImplemention

&Presentation

The GEMBAKAIZEN Workshop


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1. Understand strategy of the company Is it Cost Reduction? Is it Quality Improvement? What is your companys strategy

2. Identify Projects, from strategy, in advance3. Set target on the projects

4. Form teams from management staff5. Make schedule for workshop6. Identify technique7. Give training to the teams

PLAN


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1. Collect data Go to gemba and collect primary data Collect secondary data only if necessary

2. Analyze data using technique

3. Confirm analysis experimentally, if required4. Find temporary countermeasure5. Implement temporary countermeasure6. Display Results set up a measure7. Do Potential Problem Analysis (prevent future problems

8. Make permanent implementation

DO


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1. Monitor data - visual graph on board in gemba2. Modify, if required3. Validate, if required (prove over long enough period)

CHECK

Standardize new process, if successful:

Use Standard Operating Procedures (SOP)One Point Lessons (OPL)

Repeat cycle, if failure

ACTION

During the workshop


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Monday:

Walk through the process (physical process observation)

Allow cross functional people to make comments, ask questions

Observe with eyes, all relevant senses and make needed measurements

Identify muda, mura, muri. Focus on muda

Typically it will take half day Identify the big muda, and find countermeasurediscussion

Please discuss standing

By end of day you will have some clarity on some countermeasures

Look between the operations, more than the operations

Identify the seven mudas Look at batch size for processing and transfer

Look for mura (inconsistency)

Look for muri (strain)

Look for clutter and outbreak of material, dirt, leak, spill,

Identify the equipment that is critical from outbreak point of view

Identify areas to do 3-S

Safety firstHealth nextKAIZEN thirdRoutine work fourth inform people, marketing


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Tuesday: Cleaning the equipment

Put tags

Analyze the tags

Take Countermeasures Do Seiri (sort out and discard unwanted items and

equipment and parts of equipment)put tags whereequipment cannot be moved

What can be moved, please move it out. Either discard it,

or put it in red tag area

Start taking countermeasures against the muda

Some countermeasures will be change of managementdecisions.

Bolt exampleattack toolboxes


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Wednesday::

Start 2nd S in the tool box and spares area and WIP area

and make standard inventories.

Mid term review and then we decide what to do.

Changed a lot of things in the working methods


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1. Plan: Select Theme

Select Problem

Define Problem

Form Team

Make ScheduleAudit progress

2. Do: Collect Data

Analyze Data

Confirm Analysis

Finding

Countermeasures

Potential Problem

Analysis

Implementation

3. Check:

Monitor ResultsModify (if reqd)

Validate

Audit progress

4. Act: Standardize

SOP

One Point

Lesson

Audit progress:Close or go to next cycle

Focused Improvement usesPDCA Cycle


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Simple Techniques:StratificationFishbone DiagramCheck SheetPareto analysisHistogramScatter DiagramRun chart & Control ChartWhy-Why Analysis (WWBLA)5W-1H Analysis

Process MappingTime studyProcess Capability AnalysisIE Techniques

Powerful Techniques:Process ObservationKepner-TregoeP-M Analysis

Shainin-BhoteSMEDJidokaPoka-Yoke

Cell LayoutTaguchi MethodsOptimizationFMEA

5-SBrainstormingErgonomics

Focused Improvement uses Techniques

MudaMuraMuri


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Uncovering Hidden Waste

1. Annual Targets2. Loss Tree 3. JIT/Lean

MgtKaizen

P

time

Brilliant

Suggestion(Teian)

Kaizenneeded

Compute VAR(Value Added Ratio)

Identify

Non Value AddingActivities


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Do Process Observation:Identify the process to be improved

Walk through the processIdentify muda

Golden Rules of Gemba Management

Go to GembaHave a good look (observe carefully)

Take countermeasure on the spotDiagnose root causeStandardize to prevent recurrence


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What is a Process?

A process has something flowing through it.

To that something, value is added at somestages.

There is a definite starting point, where thatsomething enters the process, and there is adefinite ending point, where that somethingexits from the process.

That something has activities done to it.Some are value adding and some are muda.


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Before KAIZEN

muda

Cuttingm/c

Stitching

m/c

After KAIZEN

Cuttingm/c

Stitching m/cs

Now it needs 2 minutes only !

Worldclasspossi

ble

Connect the

operations

Removeisolatedislands


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Muda - how to see it?

What shouldflow

Material in a factory

guest in a hotel

document in an office

Is it stopping? Muda!

Is it retracking?Muda!

Is it piling up? Muda!

Reprocessing? Muda!Muda = Waste

with a special meaning

7 - Muda List


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7 Muda List

1. Muda of over-production

2. Muda of waiting

3. Muda of repair/rejects

4. Muda of transport

5. Muda of inventory

6. Muda of motion

7. Muda of processing


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Sustenance thru5-S, Autonomous Maintenance, Visual Management


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QFD

Dissolve

fast inwater

Soft, not

slushy

Smell good

till end

Wash well

Competitor

position

Cust Voice

additivesMoisturecontent

Top notesratio

TFMCo Voice


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How to show higher value addition

How to stop losing business to competitor

No product differentiation Fear of losing business

Cavities in Kalpur

Higher DSO 120 days

JDE not friendly

Why frequent price rise

Customers having O/S for more than 365 days

Poor prediction/correlation between lab and shopfloor results

Test certificate problem

How to improve logistics

No new innovation

Poor obsolescence

Low hit rate for projects

Poor customer process knowledge


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How to eliminate general ledger and kardex differences

Better cash forecasting to avoid idle cash

Crashing annual closing deadlines without annual stress How to ensure the farden is maintained with lesser water consumption

Projects to be taken up in first workshop

Zero discharge to ETP from Resin Plant

Reduction of inventory in outsourcing (local & imported) & 100% OTIF in

outsourcing.

Reduciton in admn costs associated with invoicing (reduce no of invoices)

Reduction in phenol and formalin loss in politec

How to eliminate general ledger and kardex differences

Kaizen Synopsis 120

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