5 s final

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5 s final

  1. 1. California State University, Northridge MSE 507 Lean ManufacturingResearch Assignment based on 5S Implementation Prepared by: Dhruv, Rijul Daga, Riyanka Dagguabti, Hitesh Professor: Hamid Gholami
  2. 2. Index Table of contents:1. Lean Journey…………………………………………………………………………. 32. 5S Principles & Implementation……………………………………………………. 43. Case Study – Northrop Grumman Corporation…………………………………. 10 a) Abstract…………………………………………………………………………. . 11 b) Introduction……………………………………………………………………… 12 c) Defining phase…………………………………………………………………... 13 d) Action Plan……………………………………………………………………...... 14 e) Lean Kaizen Methodology………………………………………………………. 15 f) Results…………………………………………………………………………..... 28 g) Conclusion……………………………………………………………………….. 294. Case Study – MaST, Australia…………………………………………………….. 30 a) Introduction……………………………………………………………. ……… 31 b) Applying the 5S…………………………………………………………………. 32 c) Conclusion………………………………………………………………………. 365. References…………………………………………………………………….. …… 37 2
  3. 3. Lean JourneyWhat do you mean by “LEAN”?LEAN is a mindset, or way of thinking, with a commitment to achieve a totally waste-free operation that’sfocused on your customer’s success. It is about people, simplicity, flow, visibility, partnerships and true valueas perceived by the customer.” Ref: David Hogg, High Performance Solutions. LEAN – from an operationsperspective cuts costs & inventories rapidly to free cash, which is critical in a slow economy.Lean Manufacturing is derived from the methods of the successful Japanese automobile manufacturer, Toyota.The focus at Toyota, according to Taiichi Ohno, was “the absolute elimination of waste,” where waste isanything that prevents the value-added flow of material from raw material to finished goods. Japanese andAmerican management specialists developed the ideas and methods over the latter half of the last century.The Lean approach leads its practitioners to improve their organizations by focusing on the elimination of anyand all waste. Lean focuses on improvement and advocates techniques to control the flow of material on theshop floor.Lean tools in manufacturing, such as Value Stream Mapping, Quick Changeover/Setup Reduction, SingleMinutes Exchange of Dies (SMED), Kaizen, Cellular/Flow Manufacturing, Visual Workplace/5S GoodHousekeeping, Total Productive Maintenance (TPM), and Pull/Kanban Systems, are used to produce change.Principles of Lean Thinking:1. The batch-and-queue mode of operation, which encourages large-batch processing and focuses on theefficiency of individual machines and workers, was an outdated model.2. Lean manufacturing, which views continuous, one-piece flow as the idea, and emphasizes optimizing andintegrating systems of people, machines, materials, and facilities, can lead to significant improvements inquality, cost, on-time delivery, and performance.3. Lean manufacturing is fundamental transformation of an enterprise and needs to be approached as a totalorganizational and cultural transformation.Most Lean initiatives start out with a 5S program to get things cleaned up and organized as one of the first stepstoward kaizen continuous improvement. 3
  4. 4. 5S Principles and Implementation5S is one of the most widely adopted techniques from the lean manufacturing toolbox. Along with StandardWork and Total Productive Maintenance, 5S is considered a "foundational" lean concept, as it establishes theoperational stability required for making and sustaining continuous improvements. Behind all workplace successes or failures are the 5S” – Hirayuki Hirano5S was developed in Japan by Japanese Guru Iwao Kobayashi. He originally compiled the simple steps to createthe best working environment. The primary objective of 5S is to create a clean, orderly environment- anenvironment where there is a place for everything and everything is in its place.5s is mostly comprised of ‘common sense’.One of the main purposes of 5S is to prepare the work environment to hold visual information. From thatperspective, 5S is a method, while creating a visual workplace is the goal. 5S exposes some of the most visibletypes of waste – Overproduction, Processing, Transport, Waiting, Inventory, Motion and Defects. It also helpsestablish the framework and discipline required to successfully pursue other continuous improvementinitiatives.5S WORKPLACE ORGANIZATION 5S is the name of a workplace organization methodology that uses a list of five Japanese words which are seiri,seiton, seiso, seiketsu and shitsuke. The S describes how to organize a work space for efficiency andeffectiveness by identifying and storing the items used, maintaining the area and items, and sustaining the neworder. The decision-making process usually comes from a dialogue about standardization which builds a clearunderstanding among employees of how work should be done. It also instills ownership of the process in eachemployee.Today Lean concept of 5S is not only about organizing and maintaining a clean work place but also aboutmaintaining a safe work place for the employees. Hence to incorporate safety into Lean principles 5S modelwas extended to form the 6S model incorporating the safety.5S is not:• A housekeeping exercise• A way to blame people for defects or to force people to do their work harder and faster• A monthly or yearly flavor e.g. Quality Month 4
  5. 5. 5S Implementation: Step 4 Plan IThe 5S implementation plan consists of the application of the PDCA cycle. 5
  6. 6. PLAN Phase: Preparation:  Provide training and education for yourself and everyone: The first thing you need to do is educate yourself on 5S. Present your proposal to management for their approval. Explain how the 5S system is a useful tool that can improve productivity, promote safety and lower costs. Emphasize the low cost involved to implement and the potential savings of a successful 5S system.  Form 5S Council: 5S Council comprises the following:  QE (5S) Steering Committee  QE (5S) Training Committee  Setting QE (5S) Policy  QE (5S) Promotion Committee  QE (5S) Audit CommitteeDO Phase: It’s the actual implementation of the 5S steps (Sort, Straighten, Shine, Standardize, and Sustain).1) Sort: The first S focuses on eliminating unnecessary items in the workplace. It is the series of steps which keep only what is needed the amount needed and when it is needed. To implement the first S the Red-Tag process is commonly employed. The Red-Tag strategy helps to identify unwanted items and determine their usefulness. There are six steps involved in creating a successful Red-Tagging process. Step 1: Launch the Red-Tag Project Step 2: Identify the Red-Tag Targets Step 3: Set Red-Tag Criteria Step 4: Attach the Tag. Step 5: Evaluate Red-Tagged Items. Step 6: Document the Results of Red-Tagging. 6
  7. 7. 2) Set in order: The second S includes activities such as: o Mark reference materials with an oblique line to detect disorder from a distance. o Put names and numbers on all jigs and tools. o Store tools beside the machine with which they will be used according to sequence of work operations. o Organize files and store using color code to make it easy to identify materials at a glance. o Store similar items together. o Store different items in separate rows. o Do not stack items together, use rack or shelf. o Use small bins to organize small items o Use color for quick identification of items. o Label clearly each item and its storage area (Visual Control) o Use see-through cover for better visibility. o Use specially designed carts to organize tools, jigs and measuring devices that are needed for each particular machine. o Create tool boards.3) Shine The third S stresses on cleanliness. Everything should be cleaned including floors, workspaces, walls and equipment. Purpose of the shine step is to expose problems because it ensures a more comfortable and safer workplace, as well as better visibility, which reduces retrieval time and ensures higher quality work, product or service. To successfully implement Shine the following steps must be practiced: Step 1: Delegate Cleaning Assignments. Step 2: Determine what is to be cleaned. Step 3: Determine the Methods to be used. Step 4: Prepare the Cleaning Tools and Materials. Step 5: Implement Cleanliness4) Standardize: The continue employment of the first 3S will ensure a high standard of workplace organization. A 5S System will only work if it is followed regularly and if everyone complies with the standards. The implement the standardize step plant must include the creation of procedures and simple daily checklists which are to be visibly displayed at every workplace. Steps to Standardize: 7
  8. 8. Step 1: Establish a Daily Schedule Step 2: Continuous Improvement: Step 3: Training and Documentation5) Sustain: The fifth and final step in a 5S System is Sustain. In this step you will instill the self-discipline and culture that will sustain the program. To sustain a 5S System you must change the culture of employees and sometimes the company. This is by far the most difficult S to implement and achieve. Human nature is to resist change. By nature people are resistant to change. The tendency is to return to the status quo and the comfort zone of the "old way" of doing things. Sustain focuses on defining a new status quo and standard of work place organization. Steps to implement: o Build awareness of the importance of 5S through retraining. o Reward and recognize efforts of staff. o Use techniques / approaches / strategies to sustain activities.CHECK Phase: At the check phase assess the company’s performance and the success of the 5S implementation. Measure the potential impacts caused by the implementation of the 5S. Assessment: o Conduct Internal QE (5S) Audit o Benchmark within the department and with other organizations o Ensure the established QE (5S) procedures are followed throughACT Phase: Once the initial phases of 5S implementation have been successfully implemented, company must instill a mentality of that continuous improvement. It is necessary to reach your company’s goals. The old adage “If you always do what you always did, you’ll always get what you always got” Is certainly appropriate. Continual Improvement: o Develop QE (5S) practices into a HABIT o Compare actual goals with set goals o Reward and recognize efforts of staff o Register QE (5S) Certification o Participate in National QE (5S) Competitions o Review Plan-Do-Check-Act Cycle 8
  9. 9.  To ensure successful 5S Implementation, each phase must proceed accordingly as illustrated in the ROADMAP TO 5S IMPLEMENTATION. A 5S System is easy to implement, has little or no cost involved and can reap great benefits. Benefits of 5S implementation: 5S has many benefits as part of lean manufacturing, it is suggested that improvements in the order or 10 to 30% in manufacturing efficiency can be gained through implementing 5S. Advantages: 1) Efficiency, improved due to the removal of clutter and the highly organized ergonomic workspace that is created through the application of 5S. 2) Delays reduced due to more visible workspace organization, missing tools and components immediately obvious. Problems are immediately obvious as they will tend to manifest as things being placed where they do not belong, thus driving people to fix them quicker. 3) Setups reduced due to ergonomic layout and organization of tools and equipment in a clearly labeled and highly visible manner. 4) Morale improved due to the employees’ involvement in improving their own workspace to their own benefit making their work easier and less stressful. 5) Marketing tool due to the tidy and organized layout resulting from your implementation of 5S. 6) Quality improved due to standardized ways or working and basic maintenance of tools and machines. There is less damage to the equipment and products. 7) Energy savings due to the improved efficiencies. 8) Safety improvements due to the removal of clutter that creates hazards, “a place for everything and everything in its place” avoiding any machine floor accidents and mishaps. 9) Increased Floor space as unwanted tools and equipment are removed 10) Increased profits due to increased efficiencies of the employees. As they take pride in their work environment. 11) Helps elimination of MUDA. 12) Extend equipment life through more frequent cleaning and inspection. 9
  10. 10. CASE STUDYNorthrop Grumman Corporation (NOC) 10
  11. 11. AbstractNorthrop Grumman: Here, we will give a brief summarization of some topics that we will be touching on aswell as some objectives for our paper. First off, as manufacturing activity slows, plant managers shift theirattention to increasing efficiency in their factories through lean manufacturing methods. Knowing exactly whereto begin a lean journey is the first task facing plant managers and improvement teams. The answer is simple, the5S program. The 5Ss are: sort, set in order, shine, standardize and sustain. We will be discussing how 5S playsa big key role within the Northrop Grumman Company. During the entire development of the 5S process eachdepartment contributes to the success of the company’s manufacturing facilities. Finally, we will conclude witha discussion on how each department incorporated the 5S structure. Our overall objectives of this paper are toportray why it is so critical to work as a team to implement the 5S system and how important it is formanufacturing companies to always improve their production line. 11
  12. 12. IntroductionNorthrop Grumman Corporation is an American global aerospace and defense technology company formedby the 1994 purchase of Grumman by Northrop. The company was the fourth-largest defense contractor in theworld as of 2010, and the largest builder of naval vessels. Its 2010 annual revenue was reported at US$34billion. Northrop Grumman ranks #72 on the 2011 Fortune 500 list of Americas largest corporations and ranksin the top ten Military Friendly employers."The best way to stabilize and understand a process is 5S," says Dave Abbett, head of Lean Material andStrategic Integration at Northrop Grumman. Northrop Grumman first deployed 5S on a part delivery process.The work area assembled a variety of components into a single product. Before 5S, the area was not wellorganized, and the process was inefficient. According to Abbett, 5S made substantial improvements in the"point-of-use kitting" area. With 5S implementation, the area saw 93 percent reduction in the space employee’stravel to complete the tasks and a 42 percent reduction in overall floor space. The system has become a one-piece flow operation between assembly and mechanics, enabling everyone involved to know what the stationhas and what it needs. Value stream mapping now provides diagrams of the workstation, indicating thelocations of essential tools and materials.We choose to critique the company Northrop Grumman on how well their manufacturing facilitiescommunicate and collaborate to design, build, produce, and sell their products and also what it is that makesthem successful as a defense contractor. The Case Study we have chosen from Northrop Grumman AerospaceSystems division’s event was held on November 17 – 19, 2005 filed as “P&SC MPD 5S Lean Event. 12
  13. 13. The Defining PhaseProblem Statement: The building M3 first floor mechanical fabrication machine shop areas are not asorganized for efficient work flow as they could be and there is waste in space usage, raw materials and damagedor unused tooling. P&SC/MPD plans to consolidate some machine shops, and this is a preliminary step towardsthat consolidation.Project description: Within a kaizen framework, 5S principles are used to specific work areas and organize,clean, standardize, and sustain. The Case Study Event contains 5 specific work areas. During the 5S processplanning these areas where organized as team.Project Objectives: Apply 5S to specific areas in MPD M3 first floor mechanical fabrication areas.Project Scope:  In : M3 First Floor Mechanical Fabrication Production Areas  Out : Office areas on same floor, NO MOVEMENT OF FLIGHT H/WDashboard metrics affected:  Square Footage of Space Used  Utilized Asset Acquisition Value 13
  14. 14. Action Plan5S area of improvement: Northrop Grumman divided the M3 1st floor building into five subareas for the initial5S improvement phase. Each area was assigned to a dedicated team leader and team members. Area 2 Area 3 Area 4 Area 5 Milling-2 Lathe & Sheet Metal Precision Turn Fab Assembly 3 1 2 3 4 5Areas: i]. Milling-1 ii] Milling-2 iii] Lathe & Turn iv] Sheet Metal Fab v] Precision 14
  15. 15. 5S Team Formation & Schedule: Team Assigned Area Team Lead Technical Lead Other Team Members* Number 1 Milling – 1 Pat Neary F, Bill Allen Luis Gonzales Bob Lowe 2 Milling – 2 Neil Hadden Ralph Clements Mitch Otera, Ric Alvarez 3 Lathe & Turn Al Curley Dave Ritchie Mike Atherton, Pert Ramos, 4 Sheet Metal Rick Fellner Joaquin Guillen Alan Hirschberg Fab 5 Precision Charlie Paul Iden Norm Stump, Lisa HenryAfter formation of the different 5S teams, Lean Kaizen event was planned based on the schedule. The Scheduleconsisted of 1] Pre-planning 2] Training 3] Kaizen implementation 4] Follow up. During the pre-planningstages the lean team decided on the area of improvement by dividing the entire floor into different zones for the5S implementation. Once the areas were assigned the teams were formed and were dedicated for each area toperform 5S. The schedule was developed and the objectives were set for each team.IMPROVEMENT SCHEDULE 15
  16. 16. Lean Kaizen MethodologyThe actual 5S implementation was performed based on the 7 steps of Kaizen event at Northrop Grumman asshown below:Lean Kaizen event: The team performed seven step processes of kaizen methodology - observe and record,analyze, develop solutions, plan, implement and evaluate, and standardize work. Standard Kaizen Process Observe & Record: It revealed how the process or operation really worked and they measured the impact of changes on a process. 16
  17. 17. 5S SUMMARY ASSESSMENT OF WORK AREADate scored: 11/18/05ENTER AN OVERALL REPRESENTATIVE SCORE OF 0 TO 4 FOR YOUR SUBTEAMS AREA(Based on observations and results of interviews of area performers) Score Team 0 1 2 3 4 Comments Newer, high vol. Mostly needed org around workflow,1: Milling-1 X tooling racks, minor cleanup. Move machine Sat; heavy duty storage already on hand- can accomplish lots Sat 2 major areas of improvement: lead man room not needed,2: Milling-2 X rack of tooling, consolidation, scrutiny of tools, work area layout. Red-tagged 29 items3-Lathe & Turn X Area was very dirty and has some setup issues 40--50 red tags. Area to be consolidated, moved into 202.4-Sheet Metal Fab X Focus on getting rid of things in prep for consolidation. Move MRB cage Examined workflow including tower, currently in a location away from the room. Plan to move mostly into room as majority is small. Later feedback from Fred Deninger that this area is slated to move to 202 anyways, so concentrate5-Precision Assembly X more on sorting and organization and cleaning rather than moving. Also saw some opportunities to ensure incoming kits are correct before starting to work on themMitch - see if we can give some surplus equipment to employees legallyOverall, received constructive comments from area performers, very positive.Mike McVey:, "Try to keep them engaged. People will want to keep a cleaner area clean." Analyze: Based on the observations and results of each area team members, an overall representative score of 0 to 4 was assigned to each area; 0 = Least significant 4 = Most significant. Based on the recorded data, it was found out that areas 3, 4 & 5 were majorly disorganized and had many unnecessary tools and equipment that were not needed in daily activities. Hence they had to conduct red tag event and remove the unwanted and extra tools. Develop plan & solutions: The kaizen to-do list was developed for each sub-team and the overall team. It is a simple matrix that lists tasks, responsibility, timing and percent completion of each item and used to track implementation progress by percent complete. The implementation used the kaizen event results worksheet, it is a tool used for presenting the overall results of the event in a pictorial or graphical format to quickly and easily communicate the before and after conditions of the team’s work. 17
  18. 18. The Kaizen to-do lists developed for each sub team have been listed below:Milling – 1: Date Status (Open or % Desired # Actionee Asngd Due Date Closed) Required Action Done Outcomes Open 1 Mike, Pat 11/19/05 Saturday, November 19, 2005 Move EDM machine (multiple areas - same Centralize functions) EDM machines and tooling Open 2 Elmo 11/19/05 Saturday, November 19, 2005 General cleaning of whole area Open 3 Pat, Luis 11/18/05 Saturday, November 19, 2005 Acquire heavy duty industrial shelving (have 1, Localized need 2 more) area for boxline tooling and raw material Open 4 Luis, Imre, Mike Optimize carts and raw material storage area Surplus excess carts and standardize storage of carts Open 5 Allen 11/21/05 Tuesday, December 20, 2005 Tool holder storage for CAT-40s Safe place to store tool holders Open 6 Allen 11/21/05 Tuesday, December 20, 2005 In-process hybrid storage area Safe storage of in process flight hardware Open 7 Allen 11/21/05 Tuesday, December 20, 2005 Acquire die card for boxline tooling Eliminate storage for tooling around machine Open 8 Brian 11/19/05 Saturday, November 19, 2005 Optimize work benches Clean and neat work areas 18
  19. 19. Milling 2: Date Status (Open or # Actionee Asngd Due Date Closed) Required Action Open 1 Subteam plus 11/18/05 Friday, November 18, 2005 Red tag cabinets by going through them. Get some other some night shift people involved in sorting. people Create the red tag log. Determine what cabinets can be eliminated or consolidated Open 2 Clements and 11/18/05 Saturday, November 19, 2005 Go through existing cabinets and identify what area performers to eliminate, redistribute, scrap and/or donate tools Open 3 Subteam plus 11/19/05 Saturday, November 19, 2005 Physically eliminate redundant and inefficiently some other used cabinets. Move them people Open 4 Subteam plus 11/18/05 Saturday, November 19, 2005 Scrap the bookshelf and outdated manuals some other people Open 5 Subteam 11/19/05 Saturday, November 19, 2005 Go through Storage rack to eliminate tools, clean, reorganize rest of tools. Move items Saturday Open 6 Otera 11/18/05 Friday, December 02, 2005 Eliminate blanketed area formerly known as the lead man office area Open 7 Clements 11/18/05 Saturday, November 19, 2005 Get right people together including subteam 1 to re-layout area mentioned above as well as adjacent areas to be more efficient per markup. Open 8 Otera 11/18/05 Friday, December 23, 2005 Do new CAD layout for all areas needing new layouts Open 9 Clements 11/18/05 Tuesday, November 29, 2005 After doing relayout, identify cabinets/shelves for purchase (common tooling and material for shop aids) Open 10 Clements, Otera 11/18/05 Friday, December 02, 2005 Investigate cost of supplying common expandable tooling for machinists into tool benches for day and night shifts to use Open 11 Clements 11/18/05 Tuesday, November 29, 2005 Ask for people to volunteer things out of their work benches and toolboxes for common shared use, get rid of scrap Open 12 Clements 11/18/05 Tuesday, November 29, 2005 Evaluate feasibility of setting up a vending machine to vend out nuts, bolts, clamps, common things used by machinists not already in vending machines. Recirc back into machine for shared use after checking it out Open 13 Clements 11/18/05 Tuesday, November 29, 2005 Come up with a simple process to establish key contacts on each shift to make them responsible for issue. Sign off sheets. Put back into locked cabinets. Tied into above action item Open 14 Clements, Otera 11/18/05 Thursday, December 08, 2005 Identify any facility fixes that need to be done Open 15 Clements, Otera 11/18/05 TBD Implement facility fixes identified above Open 16 Clements, Otera 11/18/05 Friday, December 02, 2005 Cost the move of heat treating oven to welding room. Do in conjunction with precision assembly heat treating oven 19
  20. 20. Lathe & Turn: Open 2 Ritchie 11/18/05 Friday, December 02, 2005 Get facilities support for disconnect, movement and surplus of machines Open 3 James 11/18/05 Friday, December 16, 2005 Contact junior colleges for donation of machines (e.g., El Camino, Compton, etc.) Open 4 Ritchie, Otera 11/18/05 Friday, December 16, 2005 Work with facilities for replacing floor where machines broke flooring. Include asbestos abatement as needed Open 5 Laverty 11/18/05 Friday, November 18, 2005 Create and review new draft layout of area 50% Open 6 Ritchie 11/18/05 Friday, December 02, 2005 Implement new layout Open 7 Ritchie 11/18/05 Saturday, November 19, 2005 Move, discard, reorganize, condense cabinets (~12) Open 8 Ritchie 11/18/05 Friday, January 13, 2006 Work with facilities (plumbers, electricians, etc.) to re-connect machines after they are moved Open 9 Ritchie 11/18/05 Friday, January 13, 2006 Investigate purchase of new horizontal bandsaw/cut-off Open 10 Ritchie 11/18/05 Friday, January 13, 2006 Investigate getting better vertifical bandsaw from machine shop consolidation activity Open 11 Ritchie 11/18/05 Friday, January 13, 2006 Investigate replacement for Nomura horizontal milling machine with a VTL to be able to do horizontal and vertical work including a cost- benefit analysis Open 12 Ritchie 11/18/05 Friday, December 16, 2005 Procure raw stock storage devices with labeling Open 13 Clements 11/18/05 Friday, February 03, 2006 Create a clean area policy including communication/training Open 14 Ritchie 11/18/05 Friday, December 16, 2005 Replace benches with modular benches to support ergonomic use including computers. Ensure they also have lighting on cabinets Open 15 Ritchie 11/18/05 Friday, December 02, 2005 Establish a centrally located cabinet for lathe tooling Open 16 Ritchie 11/18/05 Friday, December 23, 2005 Get new vending machine for dispensable tooling for the lathing area only Open 17 Ritchie 11/18/05 Friday, December 23, 2005 Move vending machine to lathe area Open 18 Ritchie 11/18/05 Friday, December 02, 2005 Get lathing team together to define shared tooling to put into the vending machine colocated with the lathing area Open 19 Ritchie 11/18/05 Friday, December 16, 2005 Identify and purchase a screen for mazak manual lathe to vent chips from scattering Open 20 Ritchie, Connor 11/18/05 Saturday, November 19, 2005 Relocate hazardous waste flammable cabinets that do not belong to this area Open 21 Ritchie 11/18/05 Friday, November 18, 2005 Get night shift crew to start sorting through cabinets, empty out what is not needed. Start cleaning up area as prework for Saturday Open 22 Ritchie 11/18/05 Friday, December 16, 2005 Work with facilities to replace burned out lightbulbs. Investigate possibility of lowering lamps Open 23 Ritchie 11/18/05 Saturday, November 19, 2005 Work with other areas (milling 1)to see what they want from what is being eliminated from this area Open 24 Ritchie 11/18/05 Saturday, November 19, 2005 Complete cleanup, identify what cannot be done Saturday that should be created as separate action items post event 20
  21. 21. Sheet Metal Fab: Status (Open or % # Actionee Date Asngd Due Date Closed) Required Action Done Desired Outcomes 1 Facilities 11/18/2005 12/31/2005 Open Remove MRB Cage Open space Remove shelves & cabinets in 2 11/18/2005 1/31/2006 Open inspection staging area Open space Move storage shelves against flow 3 11/18/2005 1/31/2006 Open tunnel wall Open space Add caging material to storage 4 11/18/2005 1/31/2006 Open shelves in new inspection staging area Security 5 11/18/2005 1/31/2006 Open Move inpection items to new area Open space Move center and south wall storage 6 11/18/2005 2/28/2006 Open shelves toward east wall Open space 7 Facilities 11/18/2005 2/28/2006 Open Move rotary blue tower (rolodex) east Open space 8 11/18/2005 2/28/2006 Open Rremove blue roller cabinet Open space Remove copy machine, conf room 9 11/18/2005 2/28/2006 Open table, courier shelf Open space Relocate tracker computer and remove workbench & excess packing 10 11/18/2005 2/28/2006 Open materials Open space Move area control person to inspection area and remove the area 11 11/18/2005 3/15/2006 Open control booth Open space Remove 3 storage cabinets outside 12 11/18/2005 2/28/2006 Open packaging area Open space Relocate packaging area next to 13 11/18/2005 2/28/2006 Open router staging area Open space Remove red-tagged "unused" sheet 14 Team 11/18/2005 11/19/2005 metal machinery Open space Move red-tagged but required 15 Movers 11/18/2005 TBD machinery to M1 Open space Clean sheet metal area - pick up and 16 Team 11/18/2005 11/19/2005 throw out unneeded "junk" Clean work area Clean out router staging area - e.g., 17 11/18/2005 11/19/2005 scrapped sheet metal Open space Move crates in router staging area to 18 11/18/2005 11/19/2005 dock area Open space 21
  22. 22. Precision Assembly: Date Status (Open or % # Actionee Asngd Due Date Closed) Required Action Done Open 1 Team 5 11/18/05 Tuesday, November 29, 2005 Red tag cabinets by going through them. Create the red tag log. Determine what cabinets can be eliminated or consolidated Open 2 Team 5 11/18/05 Saturday, November 19, 2005 Go through existing cabinets and identify what to eliminate, redistribute, scrap and/or donate tools Open 3 Team 5 11/19/05 Saturday, November 19, 2005 Physically eliminate redundant and inefficiently used cabinets. Move them Open 4 Team 5 11/18/05 Saturday, November 19, 2005 Scrap the bookshelf, bulletin boards and outdated manuals Open 5 Team 5 11/19/05 Saturday, November 19, 2005 Go through cabinets, create min/max cabinets, clear off the rock to eliminate seldom used tools, red tag unused tools, clean, reorganize rest of tools. Move items Saturday using existing storage Open 6 Team 5 11/18/05 Saturday, November 19, 2005 Define and error and identification and corrective action process Open 7 Team 5 11/18/05 Friday, December 23, 2005 Do new CAD and work station layout for all areas Open 8 Team 5 11/18/05 Tuesday, November 29, 2005 Request ergo review of individual work stations through health services to address deficiencies including flat screen to maximize efficiency 9 Team 5 11/18/05 Team 5 Open Reduce conveyance to Precision Assembly from Towners tower--move workable inventory into area Open 10 Team 5 11/18/05 Friday, December 02, 2005 Examine RF work stations at Bldg 108 warehouse for potential use in precisions Assembly Open 11 Paul/Norm 11/18/05 Monday, November 28, 2005 Ask for people to volunteer things out of their work benches and toolboxes for common shared use, get rid of scrap Open 12 Paul/Norm 11/18/05 Monday, November 28, 2005 Evaluate feasibility of setting up a vending machine to vend out parts. Recirc back into Precision Assembly for shared use after checking it out Open 13 Paul/Norm 11/18/05 Monday, November 28, 2005 Replace missing fluorescent light bulbs above occupied work stations Open 14 Paul/Norm 11/18/05 Monday, November 28, 2005 Clean/replace flooring tiles. (Asbestos tile) Open 15 Paul/Norm 11/18/05 Monday, November 28, 2005 Replace bulletin board with scrolling message board Open 16 Paul 11/18/05 Monday, November 28, 2005 Replace lead desk with unigroup table, return and table for staging area to improve organization Open 17 Paul/Norm 11/18/05 Friday, November 18, 2005 Ask M&P to help identify an alternative to using typewriter for electro chemical etching so we can throw out typewriter! 22
  23. 23.  Implement and evaluate: All processes are broken down into small work elements, sequenced to ensure safety, quality, and efficiency. All team members from rotated into each station and are expected to follow the standard for that workstation. On 11/19/2005 each sub team performed 5S implementation on the respective area assigned based on the schedule. Pictorial representation of the M3 5S lean event shows the following improvements. Tool Storage rack During Before Time spent looking for Sort, Shine support tooling (MUDA) After Set in order, standardize 23
  24. 24. Before After Equipment relocation to improve work flowEquipment, support tooling, cabinets, and racks heading for surplus Reduced assets, reduced space 24
  25. 25. After the implementation of the 5S’s, results of the activities were recorded.Results of 11/19/05 Activity:1] Action plans were updated and maintained in the same folder.2] Weekly meetings were led by Bob Lowe to ensure closure3] 30 day review was held on 6th Jan 2006 followed by the final review on 22nd May 2006.Action item status as on 01/06/2006: 140 Open Closed 120 Open, 31, 100 23% 104 80 60 40 38 20 12 15 19 12 31 4 8 0 5 9 5 8 0 Closed, Planning 2-Milling2 4-Sheet Total & Mgmt Metal 104, 77%Action item status as on 05/22/2006: Open, 0, 140 0% Open Closed 120 100 80 135 60 40 20 42 17 24 24 20 0 8 0 0 0 0 0 0 0 Closed, Planning 2-Milling2 4-Sheet Total & Mgmt Metal 135, 100%  Standardize: Standardize work is the foundation for this case study and if it is not firmly in place, the effects of all other elements are weakened. Clearly labeled shadowboxes were to be implemented. Actions assigned for standardization include common expendable tooling for machinists (day and night shifts) including vending machines and points of contact for controlled issue along with cleaning area policy with proper communications and regular training. 25
  26. 26. After all the process steps are implemented, accomplishments of each team are mentioned below:1] Team #1 Milling1: o Completed all action items; moved, cleaned, installed shelving, organized o “Everything has a home now” o “Team will sustain this”2] Team #2 Miling2: o Accomplished 50% action items; rest are investigative, longer term o Brought down “gray wall of china”, made areas look twice as big o Removed cabinets from area, 9 to 6, could even consolidate more later o Organized a storage rack, easy to get to now, tooling we can use not have to climb over to get to o New shelving o Got rid of at least half of stuff on racks o Follow-up plan to move oven, relay-out area to be a common area for tooling and nuts and bolts, etc. (Mitch volunteered to buy new cabinets!) o Remove a wall next week o Ralph will work with resident performers on relay-out o Will consider barcoding tools and vending machines. Now have more room for vending machines3] Team #3 Lathe & Turn: o Accomplished 50% of action items o Got rid of one of lathes themselves, movers scheduled to move out other 3 next week o Got rid of lots of old cabinets o Will re-layout areas once lathes are removed o Got rid of 11 cabinets in area4] Team #4 Sheet Metal Fab: o Got through about 50% of action items, rest are longer term for evaluation and disposition o Got rid of MRB cage, went from horizontal cage to a vertical rack o Moved shelves down about 40 feet, clearing much space o Will be putting tape on floor for demarcation of work areas o Turned around some negative perceptions o Achieved more than we thought we could, particularly with moves 26
  27. 27. 5] Team #5 Precision Assembly: o About 50% of actions, rest are longer term including computers, monitors, more functional work stations o Monday will start assessing what to put into vending machines to support work area (get what we need when we need it) o Created approx. 30% of white space in area by removing cabinets o Installed new cabinets o Want to barcode equipment or at least map it o Will be instituting kanbans o Got rid of lots of hazardous material  New opportunities: For the new opportunities needed a process for how to get rid of things and every directorate can identify 5S opportunities. The goal is to review and learn from the team effort and determine future opportunities for improvement. 27
  28. 28. Results5S is a great tool that is used to improve work organization and also improves the manufacturing efficiency ofthe company by 10 to 30%. The Northup Grumman case study shows that after they implemented 5S the resultis as follow: Before & After Square Footage & Assets Forecasted Savings ROM 11/19/05 DAY OF EVENT ROM Estimates (Later to Be Updated with More Precise Data) Team Freed Reduced # Annual Asset Red Tag Comments Square of Capital Space Base Items Footage Assets Savings Reduction ($K) (Original Acq. Costs) ($K) 1-Milling-1 250 0 $10 $0 30 2-Milling-2 800 12 $33 $21 40 3-Lathe & Turn 700 4 $29 $7 21 4-Sheet Metal Fab 2000 20 $83 $35 40 5-Precision Assembly 500 4 $21 $7 38 $70 Capital Asset Annual Cost Savings 29 cents per $100 acq value (answer is in Insurance $0.2 $K) Property Tax $15 Placeholder, to get to $20K less indirect Maintenance $3 cost in 06 from Mitch Otera $20K quote Annual Annual Freed Reduced # Saving Space Red Tag Possible additional annual soft direct Square of Capital 28 Savings Associate Items cost savings for business case* Footage Assets d with ($K) 8 Eliminated TOTAL 4,250 40 $175 $18 169 $14,438 39% Walkaway ROM 25-30% In this lean event, we got rid of over $700K of assets, so we are more efficient Could translate into $20K of indirect savings in 06Additional benefits:  Reduced Insurance on surplus capital assets  Reduced floor space and labor for searching for items due to inefficient work area  Reduced labor costs due to improved quality or less safety incidents (very low for area already)  Avoided facilitation of a new building to meet AMP SCIF needs  Charitable contribution tax benefit for equipment donations to universities, other organizations  Avoided hazardous waste cleanup due to donations (NGST is still required to dispose of it) 28
  29. 29. Conclusion 93% reduction in distance traveled by employees to complete tasks, 42% reduction in required floorspace, Cost of program $40k, Benefit of program $527K, Decrease in accidents, Higher levels of employeemorale. Improved efficiency and decrease in accident were due to the removal of clutter and the cleaner andorganized work space. The moral increased because of the improvements in the work space layout, organizationof tools and equipment.After adding up all the reductions in distance traveled, floor space, accidents and higher morale, then the totalbenefits in dollar are $527,000 and more important, the reduction of waste was achieved. This is evident by theresults achieved from the aggressive goals for improving workplace safety, cost efficiency, quality, andproductivity. How did 5S help in this process?The 5S process provides a framework by which to accomplish a less cluttered and more efficient work area,both necessary components to accomplish lean manufacturing. The largest obstacle overcome by Northrop washow to accomplish such a task in such a huge corporation, employing 75,000 people in 2009. While virtuallyevery sector of the company could benefit from 5S, Northrop intelligently decided to precede one section at atime. By following the 5S protocol, implementing it throughout the company in sections, and empowering theemployees to make suggestion and take action, the 5S program has been a success. How did Employees help in this process?A company’s most valuable assets are its employees. Therefore, employees do not merely help in this process,they drive the process. One of major advantages to the 5S is pride and ownership the employees have in boththe process and the product. These benefits aren’t just bestowed at the conclusion of the program. They areearned at every step. Employees were contributing from the very beginning, assisting with input on how toaccomplish each step, what items to “red tag”, and helping to plan the new arrangement. 29
  30. 30. Case Study - 2MaST - Australia 30
  31. 31. Introduction According to MaST, MaST is a management consultancy and training business, which concentrates onmaximizing organizational effectiveness through people development. MaST was found in 1971, inAustralia, and has expanded internationally though out the world in order to serve clients globally. Theirgoal is to keep up a good standard in order for their clients to return. Their staff has extensive knowledgeand experience in there specified areas, creating winning teams that can help organizations generateimmediate gains and long term success. MaST focuses on four main skills: 1) Leadership training and management training 2) Business training and knowledge 3) Communication skills 4) Personal effectiveness According to Facilitating change - Implementing 5-S, the Australian office was not achieving its truepotential in the market place. The board of managing directors appointed a new managing director to turnthe business around. While they were developing the organization’s strategic business plan they noticed thatthere was a distinct lack of systems and processes in place. They need to come up with a plan to support andgive effect to the strategic direction of the company. Thus they came up with the 5-S. According to Facilitating change - Implementing 5-S, in 1999 Ho suggested that the Japanese 5-Spractice is a useful starting point for a TQM program. The 5-S program is a technique used to establish andmaintain a quality environment in an organization. 31
  32. 32. The 5-S’s are: 1) Seiri (Structurise - Organization) 2) Seiton (Systematize – Neatness) 3) Seiso (Sanities – Cleaning) 4) Seiketsu (Standardize – Standardization) 5) Shitsuke (Self-discipline – Discipline) Applying the 5-S According to Facilitating change - Implementing 5-S, they first had a short tanning session on 5-S,after which the members of the organization were encouraged to put their ideas into action. The grouppreferred to look at individual work areas, processes and procedures and wanted to apply 5-S. They startedin those work areas and with processes and procedures that were known to facilitate deviation from theintentions of the strategic plan. The elements of 5-S were reviewed in turn.Seire (Organization): The immediate problem that was discovered was excess furniture, dead files and equipment justlaying around and clogging reasonable access to most parts of the suite of offices. The excess furniture wassold, and the dead files were archived. They developed a program in-house for a computer to combineinformation on clients, training programs, consultancies, participants, financial management and associatemembers / external consultants. This program also satisfies regulatory requirements of the AustralianNational Training Authority. To assist with the transition process, one-is-best of the ‘Single Point ofContact’ was developed. This principle states that one person is responsible for the flow of informationbetween the client, organization and the associates. ‘One day processing’ has also become more importantas the business grows.Seiton (Neatness): Since the organization was done, and thus giving more room to work with the workspace was re-allocated to meet the new business direction requirement. Although this was to be of a temporary naturebecause the business was moving to a new location, it was thought necessary in the meantime to promotethe 5-S program and to assist with the assimilation of the new behaviors sought. The notice boards werecleaned once and then twice, the file cabinets and the bookshelves were re-arranged so that they can haveready access. They started using white boards again, instead of storing them, to gather thoughts and newideas. Everyone was encouraged to use the 5-S practice so that when something is out of place it can be seenimmediately without a delay. 32
  33. 33. Seiso (Cleaning): As everything has been organized by removing the excess furniture and the unwanted paperwork,the place needed cleaning. A new contractor was appointed, as the old one wasn’t doing the job well.Everyone took responsibility of their own work place and kept it clean, thus resulting in keeping the officeclean and helpful to spot anything out of place. Now there were no more areas to hide anything, and ‘if yousee it, do it’ which was proposed by one of the member, was put into action.Seikutsu (Standardization): Since this is a new adaptation, it was hard for members to break their old habits. However, theorganization now has a clear and up-to-date knowledge of what is happening, where it is happening andwith whom. This has led to a better allocation of resources. A number of new initiatives have beenintroduced. They established different paper colors to differentiate between faxes (in and out), letters, andinternal memorandums. They started using bookcases rather than filing cabinets so that files and heldinformation can be seen quickly and retrieved faster. The drawers of the filing cabinets are labeled toexactly what is present on the inside. Interestingly, many of the standardization activities were occurringsubconsciously.Shitsuke (Self-Discipline): This element has become the foundation of the organization’s 5-S program. Although it is very hardto break old habits, it was needed to be done in order to inculcate the strategic plan into the neworganizational culture. Commitment by all of the staff members were clearly seen with actions such as jointdevelopment and implementation of a new telephone answering practice and a new client handlingprocedure. 5-S has helped the organization to realize that before the employees, in the work place, can workefficiently and effectively they must first work on the business. 5-S has become a part of the fortnightlyteam meeting agenda. An internal audit is done before every meeting and the information gathered is used toformulate a plan to achieve 45 of the 50 audit points. Every three months an external audit is made as part ofthe summative action plan to pick up the remaining 5 points of the 50 points.Transition: According to Facilitating change - Implementing 5-S, No one was need to be convinced about howeffective the 5-S program was working, as the results of this program was clearly seen. However, a dilemmaarose at the time of implementing 5-S, as the priority at that time was to grow the business. The dilemmawas - efforts to build the business were more successful than predicted and the organization was keen to 33
  34. 34. service the clients and secure new contracts, and 5-S would alter the priority. The team was conscious ofthis and was committed to ensuring that the introduction of 5-S and the achievement of the strategicbusiness plan goals occurred simultaneously. A factor that supported this was that the 5-S was listed in thestrategic business plan and was approved by the board of management. As with any major change, the success was largely dependent on the shared attitudinal change.Changing of the attitude was not difficult, as the prevailing attitude was one of the dissatisfaction with thestatus quo. 5-S was the right solution for the right issue at the right time. The process of introducing 5-S wasa unifying experience among the team and the new members. Now 5-S has become a great part of theorganization and is spoken about very frequently. When informing the client about organizational changes,5-S is mentioned as the reason for all those changes.Reflection and Learning:Link between 5-S practice and the Strategic Business Plan: According to Facilitating change - Implementing 5-S, the 5-S was introduced in the strategicbusiness plan to raise awareness at the board of management level and to gain commitment to itsintroduction. As the other elements to the strategic business plan were being realized, the centralcontribution that 5-S makes is being reinforced at Board level. 5-S has not been a ‘one-off intervention’ andis considered to be a pivotal part of the continual improvement process.The development of the in-house computer program and the new client relationship model can be directlyattributed to 5-S. Now, the efficiency is improved since the business can cross reference every consultancy,training program, clients, participants, consultants, in-coming fees and outgoing fees and database functionsin one package. The organization is keen on sharing its 5-S learning’s with their clients from which theymay benefit.Changes in the Internal Culture of the Organization: According to Facilitating change - Implementing 5-S, the transition phase was intended to align theorganization’s practices and behaviors to 5-S principles, which have now been achieved. The challenge nowis to make sure that the organization remains aligned. Feedback is given to individuals and teams in order toassist with the organizational management. 5-S is an important part of developing relationships as newmembers and new clients join the organization. Sometimes 5-S misalignments take place. Thesemisalignments will be detected by teams and individuals and also by external auditing functions. Whenmisalignments are identified they are investigated and re-aligned. 34
  35. 35. Lessons for the International Group: According to Facilitating change - Implementing 5-S, the international group has been having thesetypes of issues, which prompted the introduction of the 5-S into the Australian company. This washighlighted at the annual conference in London in December 2000 and the person responsible for managingsuch issues has embraced the 5-S principles as their solution. The implementation if 5-S broadly followedLewin’s 3-step change model. Particular attention was paid to 8 factors: 1) Highlighting the dissatisfaction to the status quo 2) Involving staff in the decision to adopt 5-S. 3) Gaining external advice and support 4) All staff being briefed on the principles and application of 5-S 5) Staff deciding where to start the implementation process. 6) All staff being involved all the time. 7) Celebrating the successful introduction of the 5-S principles 8) Planning for ongoing alignment and re-alignment. 35
  36. 36. Conclusion: The challenges faced by the new incoming managing director in turning the business around seemeddifficult, although it is recognized that many other businesses undergo similar challenges. Theorganizational focus was on the final outcome but it became clear very early that the day-to –dayoperational problems would interfere with the successful achievements of the corporate objectives. Thus the5-S was chosen to clear the interference. The 5-S has impacted the members of the organization in a positiveway. It has altered their way of thinking inside and outside the organization. The audit developed by Ho(1999) helped with the implementation process and also helped them to check the process. The 5-S re-energized the members and also aligned them with the strategic business plan that was required. Smallchanges in the work environment and the process contributed immensely to the morale of all concerned.The organization is ready for the maturation of the 5-S and also supports 5-S endeavors within the MaSTinternational group overseas. 36
  37. 37. References1. http://www.cmqr.rmit.edu.au/publications/pbmwicit.pdf2. Ho, S. [1999], TQM An Integrated Approach, School of Business, Hong Kong Baptist University Robbins, S.P., Bergman, R., Stagg, I. & Coulter, M. [2000], Management, 2nd edn, Prentice Hall Australia Pty Ltd, Frenchs Forest3. Charles Skinner is a 5S consultant for Productivity Inc. in Portland Ore.4. Northrop Grumman Company, File: PSC MPD Mech Fab 5S Lean 11-19-05_ROM METRICS AND SAVINGS.xls5. http://www..BradyID.com/visualworkplace 2011 Brady Worldwide Inc. 37

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