Kaizen bcic
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  • 1. World Class Series: Kaizen The BCIC Manufacturing committee 2010- Session 1
  • 2. World Class Manufacturing • QUALITY – QA,TQC,TQM, ISO – ZD,COQ,PDCA, 6σ • DELIVERY – SCM, ERP – CELL, JIT,KANBAN • COST – 5S,VE,WoW – Value Chain, Cost drivers – TCM,LEAN,TPM KAIZEN UMBRELLA OF WCM
  • 3. WHY KAIZEN 1. Universally applicable to various industries and context 2. Directly impacting on all customer satisfaction parameters of business 3. Easy to implement at grass-root level compared to other tools 4. Accomplish self sustainable benefits through people involvement 5. Kaizen generates process-oriented thinking since processes must be improved before we get improved results • Support & Stimulate Efforts for Process improvement rather than Control and Command for Performance/Results improvement
  • 4. My Gurus…. • MASAKI IMAI – KAIZEN • RICHARD SCHONBERGER – Building a Chain of customers • PHIL CROSBY – Quality is Free • MICHEL GREIF – Visual Factory
  • 5. KAIZEN GURU MASAAKI IMAI SAN • Born in Tokyo, 1930 • Founded Kaizen Institute in 1986. • Wrote best seller “Kaizen : Key to Japan’s Competitive Success.” • Was translated in 14 languages.
  • 6. Illustration of Individual Kaizen Theme: Improvement in bracket bellow support assembly for machine assembly Before Kaizen: There was a strain in mounting the Bracket bellow support on to slim3 machine. 2 persons required to assemble the cover After Kaizen: Fixture made by using simple frame from in-house parts. Single person can assemble the cover. Easy handling of part since crane will be used
  • 7. WHY KAIZEN • Easy to understand • Easy to implement • All functions can participate • Does not involve much expenses • Does not need any major tool, Except ….. Motivation • No expensive training required to implement
  • 8. DEFINITION OF KAIZEN KAI = CHANGE ZEN = GOOD (FOR THE BETTER) (Next Elevated State) KAIZEN = CONTINUAL IMPROVEMENT
  • 9. CHANGE Stumbling blocks for change 1. I have done it before… it did not work 2. It is not my idea…. it will not work 3. Why change …..while I am comfortable 4. Nobody has ever tried…. so it will not work
  • 10. KAIZEN – FOCUSED IMPROVEMENT Improvement Focused Improvement KAIZEN Paper does not burn in sunlight Paper burns Improvement is like sunlight: • Lot of energy, but dispersed (wasted) • Small improvements • Slow progress. Focused improvement concentrates the energy: • Little energy, but concentrated and aligned • Enables significant (large) improvements • Small time required • Rapid progress
  • 11. TRADITIONAL ORGANIZATION Customer expectations Top Mgmt. Middle Mgmt. Gemba Customer satisfaction
  • 12. ORGANIZATION FOR KAIZEN Customer expectations Gemba Organization to support Customer satisfaction
  • 13. THE THREE GOALS OF OPERATIONS-QDC • Customer expectation is three fold: QDC – QUALITY – DELIVERY – COST Customer is satisfied QUALITY-Better firm customer • The Firm’s response should be: BFC – BETTER – FASTER – CHEAPER Firm develops competitive advantage! DELIVERY Faster - COSTCheaper
  • 14. • QDC DEFINITIONS & QUALITY CONCEPTS – – – – It is “conformance to customers requirements” Its target is “zero defect” Its measure is “cost of nonconformance” Its system is “prevention” • DELIVERY – – – – Meeting the promised time Delivering by expected time Crashing leadtimes & cycletimes Meeting schedules • COST – Value derived by customer – Driver of Competitive advantage – Nonvalue adding activities(NVA)-Waste
  • 15. 3 Mu Checklist of Kaizen activities MUDA( Waste) MURI( Strain) MURA( Discrepancy) 1 Manpower Manpower Manpower 2 Technique Technique Technique 3 Method Method Method 4 Time Time Time 5 Facilities Facilities Facilities 6 Jigs and Tools Jigs and Tools Jigs and Tools 7 Materials Materials Materials 8 Production time Production time Production time 9 Inventory Inventory Inventory 10 Place Place Place 11 Way of Thinking Way of Thinking Way of Thinking Appendix A of page 231 “Kaizen” Masaki Imai
  • 16. Kaizen & Management Improvement Innovation Top Management Middle Management Maintenance Supervisors/ Team leaders Workers Kaizen Top Management Maintenance Middle Management Supervisors/ Team leaders Workers Japanese Perception Innovation Maintenance Top Management Middle Management Supervisors/ Team leaders Workers Western Perception Innovation Top Management Middle Management Maintenance Supervisors/ Team leaders Workers Innovation Centered High Tech
  • 17. The 4M Checklist A. Man ( Operator) B. Machine (Facilities) 1. 2. 3. 4. 5. 6. 7. 8. 9. 1. 2. 3. 4. 5. 10. Does he follow standards? Is his work efficiency acceptable? Is he problem- conscious? Is he responsible/accountable? Is he qualified? Is he experienced? Is he assigned to the right job? Is he willing to improve? Does he maintain good human relations? Is he fit and healthy? 6. 7. 8. 9. 10. Does it meet production requirements? Does it meet process capabilities? Is the lubrication adequate? Is the inspection adequate? Is operation interupted due to machine trouble? Does it meet precision requirements? Does it make any unusual noises? Is the layout adequate? Are there enough machines/facilities? Is everything in good working order?
  • 18. The 4M Checklist C. Material 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Are there any mistakes in volume? Are there an mistakes in grade? Are there any mistakes in the brand name? Are there impurities mixed in? Is the inventory level adequate? Is there any waste in material? Is the handling adequate? Is the work-in-progress abandoned? Is the storage layout adequate? Is the quality standard adequate? D. Method 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Are the work standards adequate? Is the work standard upgraded? Is it a safe method? Is it a method that ensures a good product? Is it an efficient method? Is the sequence of work adequate? Is the setup adequate? Are the temperature and humidity adequate? Are the lighting and ventilation adequate? Is there adequate contact with the previous and next processes?
  • 19. The 5 W and 1 H of Kaizen Who? What? Where? 1. 2. 3. 4. 5. 6. 1. 2. 3. 4. 5. 6. 1. 2. 3. 4. 5. 6. Who does it? Who is doing it? Who should be doing it? Who else can do it? Who else should do it? Who is doing 3-Mus? What to do? What is being done? What should be done? What else can be done? What else should be done? What 3-Mus are being done? Where to do it? Where is it done? Where should it be done? Where else can it be done? Where else should it be done? Where are 3-Mus being done? When? Why? How? 1. 2. 3. 4. 5. 1. 2. 3. 4. 5. 6. 1. 2. 3. 4. 6. When to do it? When is it done? When should it be done? What other time can it be done? What other time should it be done? Are there any time 3-Mus? Why does he do it? Why do it? Why do it there? Why do it then? Why do it that way? Are there 3-Mus in the way of thinking? Masaki Imai “ Kaizen” page 235 Appendix C 5. 6. How to do it? How is it done? How should it be done? Can this method be used in other areas? Is there any other way to do it? Are there any 3-Mus in the method?
  • 20. 3 KAIZEN elements & QDC • • • • Man Machine Material Method QUALITY-MURA DELIVERY-MURI COST-MUDA 4Mx3mu=12 point improvement opportunity
  • 21. Flexibility & Agility 1. Small batch production 2. Variation in products or manf design 3. Adaptation of new manufacturing processes for higher productivity 4. Significant fluctuation in market demands 5. Manufacture of completely new products.
  • 22. Kaizen & Competitive Advantage! 1. Differentiation- you have to be different from others; and you have to sustain that over time 2. Cost Leadership- you have to be the lowest cost producer; and you have to sustain that over time • A company takes one of the above paths to win; in both, there is need for Continual Improvement to sustain the competitive advantage-market share gain or higher profitability or both
  • 23. COMPETITIVE STRATEGIES AND QDC FOCUSSED DIVERSIFIED • Unique and Intense Q &D performance leads to DIFFERENTIATION STRATEGY • Unique and Intense C performance leads to COST LEADERSHIP STRATEGY Differentiation strategy Cost Leadership Strategy
  • 24. KAIZEN & BUSINESS EXCELLENCE! • EFFECTIVENESS-Q &D – Fulfillment of External purpose of the firm – Do the right things • Q&D C EFFICIENCY-C – – – – Internal purpose of the firm Do things right Resource deployment Resource Utilization EEE measures Business as well as Operational Excellence EFFECTIVENESS CUSTOMER GOALS EFFICIENCY FIRM’S GOALS Balancing Act Of QD &C
  • 25. IMPROVEMENT ; INTERNAL CONSISTENCY • Improve over time – Firm’s own past record • Improve over space – Competitive benchmark Mutual Forces & Stress at Nodal points Q Leadtime reduction( D) Waste Reduction (C) Zero Defects (Q) All three can go hand in hand Can there be a conflict?? If so, Stress at nodes can be relieved through Kaizen D C
  • 26. Management Kaizen and “BUILDING A CHAIN OF CUSTOMERS” • Business enterprise is a chain of customers – DESIGN TO SERVICE • Integration of operational excellence to strategic goals of a business enterprise Kaizen Kaizen Design &Dev Supply Chain Kaizen Sales& Service
  • 27. JIT & Group KAIZEN • 3 JIT CONCEPTS – PULL: Kanban – SMALL LOTSIZE: Single Pc Flow – FLOW: No online buffers • 3 CELL benefits – Q: Dynamic & Autonomous quality correction – D: Shorter throughputs – C: Lower rework, Higher productivity • 3 Mus and 4 Ms CELL MFG
  • 28. 5S & KAIZEN: ASSEMBLY PRACTICES Production schedule Check Sheets Color Coding of parts with respect to sub-assembly Labeling of Part Nos. and Part Name
  • 29. Kaizen Pentagon QUALITY COST HOUSEKEEPING DELIVERY SAFETY
  • 30. Who does Kaizen? Management Kaizen Group Kaizen Individual Kaizen Involves Managers and Professionals QC Circle members; SGA members Everybody Tools Professional skills; QC tools Brainstorming; QC tools Common sense; QC tools Target Focus on systems & procedures Within the same workshop or workplace Within ones own work area Period Lasts for duration of the project Requires 4 or 5 months to complete Anytime Achievements As many as management choses 2 or 3 per year many Implementation cost Small investment may be required to implement the decisions Mostly inexpensive Inexpensive; zero cost Result New system and facility improvement Improved work procedures; revision of standard On the spot improvement Booster Improvement in Managerial Performance Group Morale improvement; participation; learning experience Individual Morale improvement; Kaizen awareness; Self development Direction Gradual and visible improvement; marked upgrading of current status Gradual and visible improvement Gradual and visible improvement Ref: Masaki Imai “ Kaizen”- the practice Fig4.1 The 3 segments of Kaizen
  • 31. KAIZEN ORGANISATION CHART TOP MANAGEMENT KAIZEN SECRETARIAT Kaizen steering committee Kaizen Champions from All functions
  • 32. Criteria for the Kaizen committee • Originality of idea • Multiple Area of ideas • Business Impact of the idea • Innovation involved • Implemented & benefits realised • Low investment
  • 33. GENERAL RULES OF KAIZEN • Do it Today • Do not take NO for an answer • Do not find out why it cannot or should not be done. Do it. • Do not wait for perfection; 60% is good enough. Move!
  • 34. KAIZEN and NEW VENTURES 1. The journey of Kaizen cannot ignore any of the QDC parametersyet any one of them is always more critical than the other two depending upon the business context at a given point in time During the startup of new ventures, 2. • • • 3. high emphasis should be given to innovation and quality assurance, and once high level of confidence was built on product reliability, thereafter the management priority shift to shorter lead-times and promised dates, and once that was settled finally cost efficiencies and business profitability become important. The top management keep an eye on the earlier objectives so that it is not diluted during the process of shifting Kaizen focus subsequently from Q to D and later from D to C.
  • 35. In conclusion…. • CUSTOMER SATISFACTION – QUALITY, DELIVERY, COST • COMPETITIVE ADVANTAGE – FASTER, BETTER, CHEAPER – OVER PAST, OVER OTHERS • CONTINUAL IMPROVEMENT – MURA, MURI,MUDA – STRAIN, DISCREPANCY, WASTAGE • Close correlation with worldclass practices in manufacturing and success of business
  • 36. KAIZEN DELIGHTS ALL THREE STAKEHOLDERS CUSTOMER! EMPLOYEE! SHAREHOLDER! Thank you and Have a Happy Kaizen Day!!!
  • 37. Actual Examples
  • 38. CONTINUAL IMPROVEMENT Before Kaizen: No coolant filtration unit for ID grinding machine After Kaizen: Coolant filtration unit created using existing tank. Chip filtration ensured
  • 39. CONTINUAL IMPROVEMENT Before Kaizen: No support for casting. Hence was being placed on critical machined surface After Kaizen: Small supporting fixture provided. Avoids any damage to machined surface. Also safe method of placing component
  • 40. CONTINUAL IMPROVEMENT Before Kaizen: There was no method other than CMM to check the final size of Ø 58 F8.Separate inspection time was required and machine was kept idle to check this diameter in CMM. Ø 58 F8 After Kaizen: Special Gauge is made to check the size,QC inspection is not required before I/D grinding.
  • 41. CONTINUAL IMPROVEMENT Theme: Improvement in bracket bellow support assembly for slim3 assembly Before Kaizen: There was a strain in mounting the Bracket bellow support on to slim3 machine. 2 persons required to assemble the cover After Kaizen: Fixture made by using simple frame from in-house parts. Single person can assemble the cover. Easy handling of part since crane will be used
  • 42. QUALITY IMPROVEMENTS Theme: Process improvement for 21M120A717 (Bearing screw) Before Kaizen: Concentricity between OD & ID was achieved about 50 microns against required 30 microns This was due to the holding of work piece with 3 jaw chuck After Kaizen: Process changed by completing the OD grinding, assembling part on to mating component and ID grinding after the assembly This ensures that both OD & ID are concentric (within 10 microns) and no distortion of parts
  • 43. QUALITY IMPROVEMENTS Theme: Storage of spindle shafts for Slim3 Before Kaizen: The storage of spindle shafts was being done with the help of a wooden V block fixture. This method was prone to damages After Kaizen: Special trolley introduced for storage of spindle shafts. Easy handling of spindle shafts. No damages will be caused during transport
  • 44. CONTINUAL IMPROVEMENT Theme: Dummy probe pocket for CMM Before Kaizen: CMM probe was kept on a surface table. Due to this being a regular working area there were chances of probe getting damaged . The probe is very expensive and costs. After Kaizen: Probe damage avoided completely. House keeping also improved on CMM surface table
  • 45. CONTINUAL IMPROVEMENT Before Kaizen: There was no fixture for proximity tightening. After Kaizen: Two holes made on the table so that proximity can be fixed while tightening the connectors
  • 46. KAIZEN CELEBRATION •Good response to Kaizen movement •Motivation levels of employees very high •Total employee involvement
  • 47. SHOP FLOOR PRACTICES •Material issued to Shop will contain a MO copy •Material moves between work centers with MO
  • 48. ASSEMBLY PRACTICES •Identification and location for every component •Modular work benches for Sub assemblies •Storage of tools and fixtures at required locations
  • 49. ASSEMBLY PRACTICES Production schedule Check Sheets Labeling of Part Nos. and Part Name Color Coding of parts with respect to sub-assembly •Components of the work bench •Color coding for parts sub assembly wise
  • 50. ASSEMBLY PRACTICES Storage of tools and fixtures in assembly
  • 51. MATERIAL SEGGREGATION •Rework and rejection separately identified •Yellow tag for rework components •Red tag for rejections
  • 52. STORES
  • 53. Thank you