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Kaizen Training
Competing in the Marketplace
“What factors are important to the customer?”
John Deere - Supplier Development
John Deere
Supplier Development
2
Kaizen Training
TIME:
The single best indicator
of competitiveness
Set-up or Change-over Time
Manufacturing Cycle Time
Product Development Time
Customer Lead Time / Delivery Time
Working to reduce or minimize each of these times can
make your company more valuable to both its internal
and external customers.
John Deere
Supplier Development
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Kaizen Training
Shrinking Lead Times
Order Lead Times
Manufacturing Lead Times
Delivery Lead Times
Order Lead Times Manufacturing Lead Times Delivery Lead Times
Reducing the overall time from receiving the order to delivering the
product makes your company more responsive to the customer.
This can become the deciding factor when the customer makes
their selection.
As can be seen, manufacturing is only one part of the entire
process. Inputting, processing, and issuing orders is an area
for improvement, as well as, assembly, loading and delivery
to the customer`
John Deere
Supplier Development
4
Kaizen Training
Where’s the Time in Lead Time
This timeline represents an overall lead-time, with very little
time spent on adding value to the product.
Non-Value Added Time (NVA)
99% of Total Lead time
Common
Improvement Efforts
Value Added Time (VA)
1%
Concentrated on reducing VA time,
with no attention given to NVA.
Non-Value Added Time (NVA)
99% of Total Lead time
VA
1/2 %
Results of Common Improvement efforts, did not improve
response time. VA time is reduced, but, the costs for those
improvements in lead time was substantial.
John Deere
Supplier Development
5
Kaizen Training
Where’s the Time in Lead Time
When we look at attacking the NVA Activities in the Timeline
and compare that to the original timeline:
Greatest Opportunities are actually here!
Non-Value Added Time (NVA)
99% of Total Lead time
NVA Time
95% of Total Lead time
Great Job!!
Value Added Time (VA)
1%
VA
5%
This shows a 5X improvement in lead time
John Deere
Supplier Development
6
Kaizen Training
Different Types of Activities
Being able to tell the difference between NVA and VA
activities is an important step in the Improvement Process.
Value Added
Activity (VA)
An activity that changes raw
material to meet customer
expectations.
Non Value Added
Activity (NVA)
Those activities that take
time, or occupy space but do
not add to the value of the
product.
You must ask yourselves “Would you as a customer be
willing to pay for any NVA activity being performed to that
NEW 4x4 Pickup you just ordered?”
John Deere
Supplier Development
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Kaizen Training
Some examples NVA Activities:
Walking
Waiting on
machine cycle
Unnecessary
stock on hand
Generating
useless reports
Transporting
parts
Unnecessary
motion
THE GOAL IS TO ELIMINATE THE
NON-VALUE ADDED ACTIVITIES.
John Deere
Supplier Development
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A definition:
Destroy, in our minds, the
concepts and techniques of
manufacturing that we
practice today.
Create a vision of what our
production system and
manufacturing techniques
should be.
We must avoid the urge to
discover more sophisticated and
technological solutions to tasks
we shouldn’t be doing at all.
Carry out that Vision by
breaking through the status
quo.
John Deere
Supplier Development
9
Kaizen Training
Basic Rules for Change
Keep an open mind to change
No such thing as a dumb question or idea
Avoid spending money (Capital expense should
be a last resort)
Maintain a positive attitude
Don’t’ make excuses & question current practices
Think about how to do it, NOT why it can’t be done
Just do it!!
Have Fun!!!
John Deere
Supplier Development
10
Kaizen Training
Steps on Team Development
Forming
This is the development of a multi-functional
team with a variation of backgrounds and
knowledge
Storming Open & honest discussion, also brainstorming
Norming Stage where the group agrees how to
operate as a team
Performing Agreement on solutions & taking action
Adjourning Closing on the continuos improvement process
after 30 days
John Deere
Supplier Development
11
Kaizen Training
What is TAKT Time?
TAKT time is how many minutes or seconds are needed
to make one part when considering the daily volumes, to
be produced in that workcell and the total time available to
perform the job.
TAKT time is NOT the time it takes to manufacture the
product. It is based on customer demand.
Who is the customer?
The next operation
Customer orders
John Deere
Supplier Development
12
Kaizen Training
TAKT Time Calculation
Production Time Available / Period
TAKT
Number of Required Units / Period
Production Time Available / Period (one shift):
Shift Time ( 8 hrs. )
Breaks - 2 @ 10 minutes
Clean-up at end of shift
Production Time Available:
480 mins.
- 20 mins.
- 5 mins.
455 mins.
or 27,300 secs.
Units Required / Period (one shift):
10,500 Units Sold Monthly
21 Working shifts / month
TAKT Time:
500 Required units / shift
27,300 secs / shift
500 units / shift
54.6 secs.
John Deere
Supplier Development
Kaizen Training
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The 5S Housekeeping Standards
First Step towards Continuos Improvement
The aim of 5S is to create an atmosphere to keep a clean,
organized, safe and efficient workplace for everyone.
The foundation for the practice of 5S, comes from a Japanese
program derived from these words, seiri, seiton, seiso, seiketsu
and shitsuke. The 5S’s are a conventional approach towards
maintaining and improving the work place. The following words
have been chosen for the 5S acronym’s.
Sort
Straighten
Sanitize (Safety)
Sweep
Sustain
John Deere
Supplier Development
14
Kaizen Training
Meaning of the 5S’s
Sort
Straighten
Sweep
(Scrubbing clean)
Examine everything at the workplace & identify
what is needed and what can be discarded
Organizing the way things are put away with
efficiency, quality, and safety in mind. Need to
decide where and how things should be put away
and what rules should be obeyed to insure that it is
maintained.
Sweeping, scrubbing and cleaning of the building,
machines, fixtures & tools so that all areas of the
workplace are neat & tidy. This leads to early
detection of mechanical problems before they
become major breakdowns. Machines cry!
John Deere
Supplier Development
15
Kaizen Training
Meaning of the 5S’s
Sanitize
(Safety)
Sustain
(Standardize)
Insuring that each workplace is properly
designed for safety. This is to protect every
member from the dangers during the
performance of their assigned tasks.
Developing the practice necessary to continually
participate in the 5S process. This requires that
each of the S’s become a personal habit. This
is the most difficult of the 5S’s, but it is the most
important factor in achieving long term success.
Establishing routines and procedures for
maintaining and improving on the first four (S’s),
incorporating visual management tools.
John Deere
Supplier Development
Kaizen Training
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WASTE
John Deere
Supplier Development
Kaizen Training
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Do MORE with LESS
Staffing
Productivity
Waste
Productivity
John Deere
Supplier Development
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SHIFT MINDSET
CURRENT
THINKING
REQUIRED
THINKING
Processing Transportation
WASTE
Inventory
Waiting
TYPES Correction
OF
WASTE
OverProduction
Motion
WASTE NOT DEFINED
REACT TO LARGE EXAMPLES
REACTIVE IMPROVEMENT
WASTE IS "TANGIBLE”
IDENTIFY MANY SMALL OPPORTUNITIES
-LEADS TO LARGE OVERALL CHAGE
CONTINUOUS IMPROVEMENT
John Deere
Supplier Development
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ELEMENTS OF WASTE
Definition
1. Transportation - Transporting
farther than necessary or
temporarily locating, filing,
stacking and moving parts
(people, paper, information) is
waste.
Example
1. Transportation - Carrying
Tools to Point of Use
2. Correction - Doing something
over is waste.
2. Correction - Redo an Activity
Because of Error
3. Overproduction - Generating
excess paper or information, or
generating information or paper
too soon in a process is waste.
3. Overproduction - Number of
Copies
John Deere
Supplier Development
20
ELEMENTS OF WASTE
Definition
4. Motion - Unnecessary work
movements are a form of waste.
Example
4. Motion - Tools in drawers
5. Waiting - Waiting for people,
5. Waiting - Meetings to start
paper and information is waste it stops work.
6. Inventory - Too much of
anything is waste.
7. Processing - this is waste in
the process itself. Redundant
activities
6. Inventory - Supplies
7. Processing - Typed when
handwritten would be
sufficient
John Deere
Supplier Development
Kaizen Training
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• Process requires ongoing inspection and enforcement to
ensure “Standardized Work” is being followed
Standards
Inspect
Enforce
• Process does not improve automatically
Standardize
Problem Solve
Stabilize
.
Identify
Waste
- Following standards will only maintain, not improve, the process.
- Improvement focuses on the entire process.
John Deere
Supplier Development