Drive quick improvements which lead to a leaner business operating system

1. Kaizen Events - Blitz (Kaikaku ) & Lean Projects Drive quick improvements which lead to a leaner business operating system Anand Subramaniam

2. 2 “Manpower is something that is beyond measurement. Capabilities can be extended indefinitely when everyone begins to think.” - TaiichiOhno

3. Highlights Kaizen Overview Kaizen Event – Kaikaku / Kaizen Blitz / Kaizen Super Kaizen Event – Implementation Kaizen Blitz Lean Project with Kaizen Kaizen – Problem Solving Manage – Stakeholders & Change Kaizen Workshops Kaizen – Tools & Techniques 3

4. Kaizen - Overview

5. Kaizen 5 Kaizen 改善改 Kai = To Break善 Zen = For the Better

6. Kaizen – Origination A tool developed by Toyota, as part Toyota Production System (TPS) to enable continued improvement It began as "Quality Circles," where manufacturing staff solved quality issues within a structured - team framework, using specific tools Adapted by many firms around the world as a way of accelerating improvements 6

7. 7 Why Kaizen ? Reduces scrap & defects while minimising the need for capital expenditures Reduces lead times and WIP dramatically Improves Safety, Quality, and Delivery, by the elimination of waste (muda) in its many forms Clear objectives and measurement focus Assists management to find new ways to gain substantial savings in time, space and labor output Why? Uses creativity before capital Improves worker productivity by breaking down “silos” within & between depts. & divisions Empowers workers who know the situation best, to make decisions in the quickest time Data driven, fact based and improves standard operation procedures

8. Kaizen – Principles Team process Clear objectives Quick and simple, action first Tight focus on time (one week) Necessary resources available right away Immediate results (new process functioning by end of week) 8

9. Kaizen Strategies / Goals Prioritising problems Elimination of wastes (8W) Define clear leadership initiatives Create a culture where Perfection is perpetually chased Teamwork: train employees (Kaizen & problem solving) Communicate ideas up and down company hierarchy; every one is encouraged to seek out and exploit new opportunities 9

10. 10 Kaizen – Blitz & Projects Reduce setup times - SMED Establish new metrics Visual factory Reduce WIP MRO Eliminates long conveyor assembly lines with cells Combine operations Kaizen Projects New product development Change process 5 S Determine proper tooling needed and organise Reduce lot sizes Load level schedule Improve safety

11. Kaizen – Key Success Factors It should change / remove the “Value Stream” (VS) constraint(s) Be certain to define whole “VS” metrics when, determining and assessing the impact of a Kaizen implementation Redeploy resources so that they contribute to adding value; not just eliminating them Ensure Value Stream Mapping (VSM) process is implemented correctly, this will end up with a list of potential Kaizen events as actions lists on the Implementation Plan A Kaizen is an ACTION that, increases “Value” in the VS. It must have a permanent positive impact on the VS as a whole, in order to be called Kaizen 11

12. Kaizen Event – Kaikaku / Kaizen Blitz / Kaizen Super

13. Kaizen Event A Kaizen event is any planned action that causes a Current State Map (“As~Is”) to become obsolete and that causes the Value Stream's productivity to permanently* change for good. * by permanently means ..until the next Kaizen improves it further... 13

14. 14 Why Kaizen Events? Kaizen drives the improvements which lead to a leaner business operating system Future State (Lean) (To~Be) Current State (As~Is) Kaizen

15. What is a Kaizen Event? Kaizen Event Specific Goals Short time frame Specific Deliverables Dedicated Resources Highly focused activities Continuous Improvement Teams work together to create radical change Also known as Kaizen Super Kaizen Blitz Kaikaku Lean Event Rapid Fire Lean Rapid Continuous Improvement Event 15

16. Kaizen Event – Goal / Objective Improve an area of the business Throughput Labor Efficiency Waste / Space Reduction Output Improvement Quality or Mistake Proofing Employee Involvement Culture change Trying out ideas Manageable Initiatives that can be done right away (Not OPEX / CAPEX projects) 16

17. Kaizen Event - Resource Involvement Dedicated Resources No other responsibilities for event duration 8 hours for 5 days Core Team Members Event Leader Subject matter expert (non) operations Process Owner / Supervisor (from the target area) 17

18. Core team expectation during an event Hear out every member’s ideas Group decides on direction Ideas should be tried & tested Accountable to the goals established Work as a group throughout the period (no rank, no title) Everyone must be a full participant (no observers) for 3 ~ 5 days 18

19. Kaizen Event - Implementation

20. Kaizen Umbrella Quality Improvement Customer Orientation Total Quality Control Discipline in Work Place Productivity Improvement Total Productive Maintenance New Product Development Co-operative Labour Management Relations Kanban Robotics Zero Defect Q.C. Circle Automation Just-in–Time Suggestion System Small Group Activity 20

21. Kaizen Event – Key Principles Say “ NO “ to status quo Good ideas come when the going gets tough Do not look for excuses, find ways to make it happen Do not worry about being perfect - even if you get half way - Start now If something is wrong fix it on the spot Get rid of old assumptions It does not have to cost a lot of money to improve the process Look for wisdom from the team rather than one individual Do not stop asking questions till root causes of problems are established Never stop doing Kaizen event 21

22. Kaizen Events – Concepts / Application Widely applicable – Can be used in both manufacturing and non-manufacturing environments Team based & cross functional – Team members can be from various functions of the business. Top management participation is encouraged. Planned & tied to business goals – Events are planned in advance and tied to business goals and or value streams. Planning is critical to the success of the event. Focused in scope – Events are very focused, Don’t take too much on at one time! …. 22

23. Kaizen Events (Contd.) Short term, fast & iterative – Events last approximately 2 to 5 days. Even though the process has gotten better you may have to repeat events on the same process… Continuous Improvement Based on IMPLEMENTATION – Events are biased to ACTION. Plan your events on DOING……… Highly effective & results oriented - Kaizen events will generate quick results. Measurable results. Establish the baseline, and measure the change! A Learning Experience – Every member of a Kaizen Team will walk away from the event learning something new! 23

24. Kaizen Cycle 24 Start Here Do It Again Celebrate Document Reality Make this the Standard Identify Waste Kaizen Measure Results Plan Counter- measures Verify Change Reality Check Make Changes

25. Kaizen Event - Implementation Successful implementation of Kaizen Event, include – 5-S 8-W The 5 Whys Value Stream Mapping PDCA (Plan, Do, Check, Act) 25

26. Typical Kaizen Event ( 3 ~ 5 days) Team training (1/2 day) Lean overview Structure of Kaizen event Team conducts Kaizen on the factory floor area (2.5 ~ 3.5 days) Identifying problems Defining current process Observing, sketching process and collecting data Brainstorming suggestions for improvement Implementing solutions (rearrange equipment, modify machines, change methods, etc) Team measures improvements and verifies solutions (0.5 day) Team presents results to management, co-workers and shop floor personnel (0.5 day) 26

28. Standard Operations

29. 5S

30. Kaizen Methodology

31. Tools & Techniques

32. Discover Problem

33. Measure & Analyse Current Work Process

34. Brainstorm solutions & formulate Process Improvements

35. Create and map new process

36. Apply rapid implementa-tion

37. Establish New Standard Process

38. Operate Using New Standard Process

39. Finalise New Standard Process

40. Monitor & Control

42. Kaizen Blitz

43. Kaizen Blitz A Kaizen Blitz is an intense and rapid improvement process in which a team or a department throws all its resources into an improvement project over a short time period, as opposed to traditional Kaizen applications, which are performed on a part-time basis

44. Kaizen Blitz - Benefits Required resources are low Change is almost immediate Relatively simple to plan and implement Many small improvements can be as, if not more, beneficial than larger scale changes

45. Lean Project with Kaizen

46. 33 Kaizen – Implementation Roadmap Project / Change Management Diagnostic Kaizen Sustain Planning Pre Diagnois-tic Plan Manage Stakeholder Expectations Continuous Improvement Plan (Define) As~Is Collect Date Business Improvement To~Be Monitor Execute VSM, 7W, Takt, 5S, Prioritise (Future Projects) DMA IC 1 ~ 4 5 6 7 8 9 10 11 ~ 15 Weeks

47. Planning / Diagnose Phase Planning and preparing for kaizen events includes: Collecting background data Selecting a target area and problem Scheduling the event Selecting team members Making all preparations for a successful event 34

48. Kaizen Phase Process changes are made. Typical steps include: Team orientation Gathering baseline data (time studies, etc.) Mapping the process Brainstorming improvement ideas Testing ideas – visioning process Analysing the results / quality assurance Documenting the new process, and Presenting the results 35

49. Monitor, Control & Sustain Phase Closure and follow-up activities, to ensure that the results of a Kaizen event are communicated and sustained. Typical steps include: Lesson learnt and highlight improvements made during the event on bulletin boards / newsletters Celebrate success, recognise and award team member contributions Hold monthly “mini-meetings” to discuss the need for adjustments and to ensure unresolved actions are completed 36

50. Kaizen – Problem Solving

51. Kaizen – Eliminate the Gap 38 Eliminate the Gap! Kaizen will help us do that Customer Supplier

52. Kaizen - Steps Select a bottleneck situation Understand the “Current State” of the bottleneck Brainstorm the “Future State” to set improvement goals. Implement within the five days Then use the 30 day opportunity log to finish up any items requiring more time 39

53. Kaizen – Teams Understand Goals and objectives Team rules and guidelines Know the process Members - dedicated or volunteers Team performance evaluation Team reward and recognition 40

54. Kaizen – Goal Setting Team must define the purpose / objective State the desired goal of the process and set aggressive stretch goals Goals should be “SMART” (e.g. Reduce machine set up time in the fabrication process, from 65% to 75% by 30.06.2010) 41

55. Kaizen – Team Charter Challenge Everything and NOT a license to spend No action – no success Focus on improving things, not pointing fingers Quick and simple is better than slow and fancy If it doesn’t work out, can always go back to the way it used to be 42

56. Lesson Learned Get everyone involved Complete all actions on time Take photos before and after Your customer or your CFO should see results Management support critical for long term success Plan events that support company goals (avoid “shotgun Kaizen”) It’s easier to cut costs by 10% than it is to increase sales by 10% 43

57. Manage – Stakeholders & Change

58. Stakeholder (Sponsor) Engagement 45 SPONSORS CHANGE AGENTS TARGETS

59. 46 Sponsor’s Role Model a confident and constructive view of change Solicit feedback Understand the need for the change and help others design the “Future State” Monitor and readjust priorities & allocate resources Acknowledge what people are experiencing and give them opportunity to express it Sponsor Show personal support – both public and private - throughout the change Hold Change Agents & the Targets accountable Change the reward / recognition system

60. 47 Change Agent’s Role Modify time frames / resources as needed Integrate the change into the culture Exhibit leader behavior and create dissatisfaction with the “status quo” Plan and/or implement the “communication”, “education & training” and “reward” strategies Understand the need for the change & the impact on all involved Change Agent Communicate the change clearly and CONSTANTLY Involve the Targets in planning whenever possible Manage the change resources

61. 48 Targets Successful Change begins with understanding the Targets of the change Think first about what they have to give up, not what they’ll get Be concerned that they don’t have enough skill or resources Feel alone even if everyone else is going through the change Targets Feel self conscious and ill at ease when confronted by change Be at different levels of readiness for change Only be able to handle so much change Try to go back to doing things the “right way” when the pressure is off

62. 49 Resistance It would have worked in other places but not here We need to spend more time thinking about it We’ve tried something like this before We don’t have time for this It’s a good idea; it just won’t fit here Resistance It’s impossible; it just won’t work The union / shop floor / etc. won’t go for it Too many changes have been made already It will cause conflict / difficulty / chaos I just want to be left alone to do my job / my thing It’s unrealistic; reality will kill it The company is doing fine already; who needs it?

64. Too much effort for so little gain

65. Change is a criticism of my past performance

66. Don’t trust the Change Agents

68. Don’t believe organisation can get through transition and too much disruption

69. Nobody asked my opinion

70. The change is Irreversible

71. Doesn’t solve the problem

73. Hidden “time bombs”

74. Change not supported

75. Negative outcomes

76. Caused a loss of jobs

79. Validate the Current State

80. Clearly define the Desired State

81. Identify what is not going to change

83. Provide information and answers in a variety of ways

84. Create safe ways to express resistance

85. Honor the old ways

87. Communicate positive results of Desired State

88. Acknowledge the price they have paid

90. Assess gap between current knowledge/skill level and desired level

92. Provide training about change and the change process

94. Provide refresher courses as needed

96. Identify behaviors that are desired and need to be encouraged

98. Reward incremental steps toward new performance levels

100. Reward achievement of new performance measurements

101. Do not reward or ignore undesirable performance

104. Team-building

105. Skill-building

106. Issue generation

107. Issue prioritisation

108. Facilitated problem-solving teams

109. ‘Fairs’ to involve stakeholders

111. Every idea gets a response

113. Headline

114. Newspapers

115. Meeting summary

116. Status reports

117. Remove barriers

119. Charter the workshop and contract with Sponsor

120. Sensing Sessions to collect data, identify issues and refine the problem/ opportunity statement

121. Select and refine topic

122. Collect background data and determine topic questions

123. Design Workshop meeting agenda and plan logistics

124. Identify participants and communicate expectations

126. Kaizen Workshop – Characteristics A focus on an area or process to achieve a specific goal Includes a team that is empowered to make changes Team make-up should include: operators, maintenance, quality, outside eyes and a process owner (If possible a customer) Supported by Management with $$, time, and frequent “Gemba” activity Managed to resolution and a commitment to sustain 58

127. Pre-Kaizen Workshop – Planning Define the opportunity cost, quality, delivery, waste, safety, morale etc – Be Specific Form & train the team Must be dedicated resources and commited Must be trained in specifics regarding the task at hand. (ie: process knowledge, lean tools) Set goals / collect baseline data Is the problem well understood – what does success look like? Leader & team responsibilities 59

128. Kaizen Teams Team composition & training is critical to the success of the team Composition should reflect the diversity of the work center / shop floor / warehouse A team generally consists of 3 ~ 8 people Each member will be chosen to perform a specific role 60

129. Kaizen – Engagement Rules Respect others Particularly the local operators, you are in their living room Document reality If you make changes based on data, the data should be based on reality Do your share Everyone has to contribute 61

130. Kaizen – Engagement Rules (Contd) Try something new Be open minded - try it instead of racking your brain for reasons why it won’t work (try-storming) Ask why (the 5 why’s) Gain complete understanding, assume nothing Be safe / Think safe Both in your actions and in what you implement 62

131. Kaizen – Do & Do Not Do Do Not Open minded to all approaches Try as many ideas as possible. Minimum of three (3) Do as many observations of reality as possible (10) Do include one person who is convinced it can’t be done Do make sure management is committed to resolving the issue and supporting the team Assume everything is good on what you hear (see it with your eyes) Just sit around but brainstorm (justify the current way things are done) Assume you know the problem Hold a Kaizen to resolve an issue that is not driving a business goal 63

132. Kaizen – Tools / Techniques

134. Identify problems

135. Set targets and enter on Target Progress Report

136. Plan & initiate Kaizen Workshop

137. Pair up 2 for each process

138. One times w/ stopwatch, other jots down times

139. Verify if Cycle Time meets TaktTime

140. Observe site

141. Identify Process

142. Prepare StandardisedWork Sheet

143. If equipment seems to lack in capacity, use Capacity Sheet to define problems

144. Fill out StandardisedWork Combination Sheet with best times

145. Note long times on Combination Sheet, there are opportunities for Kaizen

146. Continue to observe site, note problems on Kaizen Newspaper

147. Try out ideas for kaizen immediately, verify results

148. Prepare Kaizen Proposal Sheets for effective kaizen ideas

149. Update Kaizen newspaper

150. Update Target Progress Report

152. 67 Lean - Tools 5S 7 W (Waste) Jidoka / Andon / PokaYoke / Mistake Proofing Single minute exchange of die (SMED) Standard Operating Proced-ures Kaizen Tools Kanban Total Preventa-tiveMainten-ance Takt time Through-put time Spaghetti diagram Value Stream Mapping Kaizen blitz or event

153. 68 “If we don’t change our direction, we might end up where we’re headed.” - Chinese Proverb

154. 69 Good Luck http://www.linkedin.com/in/anandsubramaniam