OBEYA OPERATIONS
Tearing Down the Walls
to
Achieve Breakthrough Performance
Sam MacPherson, Lean Transformation Sensei, The Lean Leadership Academy™
Bill Levealle, General Manager, Castle Metals Aerospace, Los Angeles, CA
Robert Porter, Operations Manager, Timken Aerospace, Rutherfordton, NC
(910) 217-LEAN
www.leanleadershipacademy.com
What is an Obeya?
A Room with a View
•
•
Toyota Thailand
• The Obeya, or “The Big Room”, dates
back to its early days of Toyota, in
Japan.
• First time visitors to Toyota’s
Corporate HQ in Japan are surprised
at the large open office areas and the
lack of cubicles isolationism.
•
•
The Theory behind Obeya is based on a
simple idea: Dedicate time and space to
coordination and problem-solving and
organizational barriers will be minimized.
The ability to maintain Proper Problem
Awareness in Real-time, listen to Teammember concerns, make discoveries,
resolve problems together, collaborate,
accelerate leader and team-member
development and reach our full potential
is critical to a Lean Organization
The Obeya promotes coordination,
strategy and flexibility while leveraging the
expertise and support of teammates from
diverse areas.
The Result: Effective solutions and
actions that can be developed and
implemented quickly.
There is Always Room for Kaizen
In Coordination!
Types of Obeya
Global Launch
Obeya
When developing a new vehicle,
managers responsible for decision
making in design, production
engineering, and manufacturing
gather in one place to shorten
lead-time through real-time
communications & simultaneous
engineering
Business Process
Layout Obeya
Business
Obeya
TMC
Global
Launch Obeya
(Executive
offices)
Business
Obeya
(Sales)
Centralized data
collection, prioritizing
and action planning
Business
Obeya
Toyota University
Global
CamryCamry
GlobalLaunch
Launch
Toyota
TMM Australia
Mfg Australia
Business
Obeya
(Mfg)
Toyota University
(Engineering)
Focus Obeya
 Project War
Rooms
 SQDC/PDCA
 A3 Problem
Solving
 Jishuken rooms
Focus
Obeya
Focus
Obeya
Focus
Obeya
Focus
Obeya
Toyota Motor Sales
Large Complex Obeya
Toyota Motor Sales and Finance
• Large Open Office areas
• Accommodates dozens of team-members
• Manufacturing Operations
• Sales and Finance
• Design Engineering
• Manufacturing Engineering
Potential Issues:
• Risks being too formal and rigid
• Interoperability of IT between operations
• Sensory overload
Gap Card Suggestions
Anyone in the Toyota organization can enter
the Obeya and contribute a suggestion by
filling out a red card or red Post-it ® note.
The purpose it to accept anyone’s input.
An obeya or department leader is assigned
to address the Gap and only when the gap is
closed is the Gap Card taken down from the
Obeya wall.
Small-Focused Obeya
•
•
•
•
•
•
•
•
Focused w/Defined Purpose
Specific Projects
Jishuken or Team room
A3 Problem Solving away for
noisy gemba environment
Limits group size by design
Economical
Closed rooms melt down
barriers
Encourages idea contribution
PDCA/Problem Solving
Process Layout Model
LEAN LEADERSHIP
ACADEMY
Obeya Operations
Castle Metals Aerospace
Los Angeles
Background
• Manufacturer of Aircraft Engine Parts, Various
‘Aero Structure’ Components, Aircraft ‘Complex
Subsystem’ Components and Distributor of Exotic
Alloys / Specialty Metals
• Castle Metals Aerospace Began ‘Lean’ Journey in
January 2012
• Los Angeles was chosen as “Pilot Facility”
• Compelling Need for ‘Cost Basis’ Improvement
and Improvement in Key Performance Metrics
Why adopt ‘Advanced’ Lean Business
Processes? (Zone Control & Obeya Operation)
• Critical ‘End Use’ applications of our products:
– Commercial & Business Airplanes: 737, 747, 767, 787,
A320, A350, G150, G450, G550, G650
– Defense: F-35 JSF, F-15, F-18, C-17, C-130, Apache III
– Space: Delta IV, Atlas V, Falcon, Dragon, SLS, New
Shepard
– Various other DoD applications
• ‘-0- Defect’ Tolerance & 100% OTD of Parts and
Product is Required by Customer Base
Castle Metals Aerospace Obeya
“Management Cadence”
• 6:45 am ‘Hot Start’
• 9:20 am JSP Meeting
• 11:30 am ‘Mid Day’
Huddle
• 3:00 pm ‘PFEP’
Meeting
• 4:00 pm End of Day
Meeting
Daily JSP Meeting
(Joint Sales and Production)
What We Learned in ‘Obeya’
Operations & ‘Zone Control’
Before:
After:
• Previously: Measured Shift
Production only.
• Did not Monitor the Use of
Routine ‘Consumables’ in
Production.
• Applauded: ‘OverProduction’ when it
infrequently occurred
• Hourly Production Records
by ‘Mfg. Zone’ increased
Understanding of
Production Rates per Shift
and Variances
• Better Utilization of
Resources
• Much better grasp of
Internal ‘Costs’ per shift
• Capacity, O/A Increased
• WIP, Defects, and ‘Starving’
& ‘Waiting’ decreased
What We Learned in ‘Obeya’
Operations & ‘Zone Control’
Before:
After:
• Patterns of Work &
Production varied by
Operator
• Resulted in Inconsistent
and Non Predictive Repair
& Maintenance “pitch”
• ‘Non Standard’ Work
created variance in Part
‘Fit’ and ‘Tolerance’
• All Operators use same
Machine ‘set-ups’
• Predictable R&M
Schedule replaces
Equipment ‘Wear’ Parts
before breakdown
reducing downtime
• Predictable & Repeatable
Tolerance on Parts eases
‘Part Fit’ at Customer
Assembly
Traffic Department “No Cubicles Walls” Environment
In the “Information Flow” Realm, Our “No Cubical Walls” Obeya
Deployment Reduces the “Waste” of Walking and Improves
Communication through Face to Face communication, Administrative
Team-member Problem Awareness and Engagement
Obeya, Operations & Production
Control Work in ‘Close Proximity’
Obeya Operations: “Sales”
What We Learned in ‘Obeya’
Operations & ‘Zone Control’ “Sales”
Before:
After:
• Salespeople measured on
Monthly & Quarterly
Basis
• Sales “Pipeline” by Sales
Person reviewed and
Submitted Monthly with
Wins & Losses reviewed
• Monthly Conference Calls
with Remote Salespeople
only
• All Inside Salespeople
have Two Hour Takt Time
for Order Entry.
• “Top 5” Progress of
“Pipeline” Opportunities
discussed weekly with
Outside Sales via
Conference Call.
• Also on Call: Discussion
of Competitor Pricing,
Significant Actions
Reflections on Implementing
Obeya & Zone Control
• Mechanism for ‘Plant Shop Floor’ Problem Identification and
Problem Resolution.
– Makes Problems Visible
– Must be prepared to Address all Problems that may arise
– Reduced ‘Un-Planned’ Downtime by 71%
– Reduced ‘Key Value Stream’ Cycle Time from Order to Cash
by 62% initially, with ongoing improvements.
• Reduces Operator “Struggles” and Improves Morale
• Requires Daily Commitment & Diligence from Management
– Requires GM, Regional Operations Manager, Area Manager, Group
Leader, Team Leader have “Deep” Job Knowledge
• Builds Teamwork and Improves ‘Associate’ Relations reflected
by Vastly improved ‘Employee Engagement’ Survey Results
‘Obeya’ Operations & ‘Zone Control’ =
Breakthrough Performance Improvement
& Sustainability
“Happy” Faces on our Customers!!
LEAN LEADERSHIP
ACADEMY
Zone Control
Timken Shiloh, Rutherfordton, NC
4. Team
Leader
Response
3. Audible
Alarm
5. Op Center
Communication
6. Response
Team
2. Visual
Identification
7.Problem
Solving
Tools
1. Notification
of Problem
10. Problem prevention
re-occurrence
9. Data
Analysis
8. Data
Collection
Background
• 3 distinct flow paths serving different markets
and sales networks, Distribution and OE
• Timken Shiloh began ‘Lean’ Journey in
December 2010
• Machine Tool Value Stream was chosen as the
plant pilot flow path
• Compelling Need for step improvement in
production output, productivity, cost, customer
service, schedule attainment and On time delivery
to promise
Why accept the challenge of a lean
transformation?
• Cyclical demand cycles of three distinct product platforms:
– Aerospace: OE customer base, complex long lead-time supply
chain and demand profile. Customer requirements, significant
and variable customer to customer
– Machine Tool: High precision product ABEC 9, tied into
automotive business cycles, primarily a distribution supply chain
requiring short lead-times with little forecast visibility or
accuracy
– Commercial: Largely off highway, distribution stocking and
lower complexity, less demand variability
• ‘-0- Defect’ Tolerance , High Customer Service expectation
across multiple customer profiles and significant
competition to reduce cost
Timken Shiloh
“Management Cadence”
• 7:45 am ‘Plant Fast
Response Meeting’
• 10 -11 am Line PDCA’s
• 11-12 am Critical Point
Gemba walks
• 3:30 pm JSP review
• 7-8 pm Line PDCA’s
• Bi-Monthly Process
Reviews
• Monthly Hoshin/Kojo
Kanri reviews
Daily Joint Sales & Production
PDCA
Materials
Engineering
Quality
Scheduling
Operations Manager
Cross functional team PDCA meeting
- Daily Production Plan - Ahead or Behind
- Line Down A3 Report Outs
27
Team Leaders
Group Leaders
Plant Manager
Lean Analyst
What We Learned in ‘Obeya’
Operations & ‘Zone Control’
Before:
After:
• Help chain was 4 hours,
loosely followed
• Rarely produced objective
results
• Did not realize deviations
from plan in real time
reducing opportunity to
drive mitigation and
corrective action
• Help chain 1 hour with
rigid operator and
support compliance
• Documented processes
driving A3 thinking and
prevention reoccurrence
• Hour by hour tracking and
reporting driving action at
the time and point of
occurrence
Before
240 Minute Chain of Response
After
60 Minute Chain of Response
29
Help Chain In Action
What We Learned in ‘Obeya’
Operations & ‘Zone Control’
Before:
After:
• Little understanding of
actual performance to
standard
• Quick fix to “get back
running”
• ‘No standard work
leading to variation in
output, flow and product
• All Operators use same
Machine ‘set-ups’
• Robust repairs with
corrective actions
developed to prevent
reoccurrence where
possible
• Standard work for
operating associates and
leadership driving
consistent and rhythm
Before
After
Grind wheels in
workstation
Grind wheels at
distance
Audit Process –
Operator
Owned
No Audit Process,
No SUSTAIN
5S Event: Machine Tool
Team: Zone Team Leader, Operators
32
Reflections on Implementing
Obeya & Zone Control
• Implementation of Andon system.
– Required a change in culture, thinking and discipline at all
levels of the organization
– Absolute support top down
– Within 60 days, achieved
• 29% improvement in output
• 17% improvement in productivity
• 12% improvement in schedule attainment and on time delivery.
• Improved associate engagement and morale
• Continue to build and improve problem solving skills across
the organization
– Tendency to revert back to what we are good at, used to, quick fix
versus permanent, robust repair solutions
The Shiloh Operations Leadership
Team
Establishing an
Operations Obeya
Management
Leadership
at the Source
“TPS style improvement depends on the creative
efforts of people led by managers and work team
leaders with extreme attention to detail in the
execution of daily management techniques.”
“Having (a) proper awareness of problems and an
extremely low tolerance for the current condition
is a proper attitude.”
-Isao Kato: Father of Standardized Work and Toyota’s Supervisor
Leadership Development Program
How to Build Your “Big Room”
A Phased Implementation
Approach in Your House of Lean
Phase 5 Obeya
Phase 4 Obeya
• Deployment Focus
• TPS Integration
• External
Connections
• Full SQDCPM
Phase 2 Obeya
• Flow Focus
• Standardized
Work
• TPM Integration
• Level Production
• Full Hoshin
Integration
• Sales Obeya
• Engineering
Obeya
Obtain a Profit and Grow by Increasing Customer Value
Through the Elimination of Waste, Burden, and Fluctuation
Highest Quality - Lowest Cost - Shortest Lead Time
Just-In-Time
“Right part, right
amount, right place,
right time”
Phase 3 Obeya
• Full SQDCPM
• Organizational
Problem Solving
• A3 Management
Phase 1 Obeya
• Process Stability
• Work Standards
• Schedule
Attainment
Focus
Takt-time:
Produce at the Pace of
Sales
“Continuous Flow”
“Pull System”
In sequence of demand
Small lot sizes, frequent
Change-overs
Respect for Others
Jidoka
Respect
Teamwork
“Intelligent Automation”
Continuous Improvement
Spirit of Challenge
Kaizen – Continuous Improvement
Genchi-Genbutsu – “Go and See”
Leveled Production (heijunka)
Kaizen
“Quality from the Source”
(In-station Process Control)
“Make Each Process
The Customer”
“Make Problems Visible”
“Stop and notify about
Abnormalities”
“Error-Proof”
“Separate Man from
Machine”
Standardization
Stability and Reliability in Man, Machine, Methods, Materials
Start with Visual Management for
of each level of the House of Lean.
As you mature each level “The House” the
nature of the Obeya
Evolves and Transforms.
The Truth Telling Room
 Open Visual meeting space and Office
Environment adjacent to senior
executives desks
 No Walls - Direct Communications
between customer service, production
control, lean supply chain/materials
management/production engineering
 GTS>PDCA Flow
 Visual Connection to Hoshin
 Production Status Board
 Integrated with Andon System
 Break Down Maintenance/Quality
Dispatcher System
 Extreme Problem Awareness and
Urgency
 Dynamic Leadership Obeya Director
 Leadership Engagement
 Next 24 Shift Activity Breakdown
 Visual 30-60-90 Day Demand Planning
Area
Joint Sales and Production
(JSP) Team Planning
Operations Center
Obeya Model
Dispatcher
Operations
Current Operations Production Status Board
“Yamazumi Board”
ANDON
Status
Countermeasure
Progression (PDCA)
Quality Advancement Plan
(Do it Right)
Dashboard
Hoshin , Kojo, and Baby A3
Plans
Gemba Kanri Plans For
Zones and Value Streams
Equipment Reliability
(Fix it Right)
10-10-10 Day Master
30/60/90 Day
Month Schedule
Master Schedule
10 day three day out
Breakdown Schedule
Quality Delivery Price Service Innovation Growth
Safety Quality Delivery Cost Productivity Morale
TPM Advancement Plan
Voice of the Customer
Management Cadence Kami Shibai
Visual Control Board
Obeya Operations
Center in Action
Maintenance Mgr
And Operations
Center Director
Andon Status Awareness
Plant
Quality Manger And
Scheduler at the Gemba
Obeya Team conducts
PDCA daily to improve
Obeya Operations
Plant
Operations Manger Discussing
Hourly Production Status
Update by Group Leader with
Value Stream Managers at
Obeya Production Status Board
Single Minute Breakdown
Response Team PDCA’s Red
Zone response performance
Obeya Team prepares to
Go to the Gemba for
Red Zone Condition
Obeya
Just in Time and Jidoka
“I think the ideal situation of the Obeya should
be the full integration of People and Data which
mimics the process. Utilizing the latest
technology of human interface communication
to promote ‘Just in Time’ in human processed
information with Jidoka considerations.”
Casey Ng
Retired General Manager
Toyota Motor Manufacturing Australia