Tqm tpm kaizen


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Tqm tpm kaizen

  2. 2. QUALITY <ul><li>TPM </li></ul><ul><li>KAIZEN </li></ul><ul><li>TQM </li></ul><ul><li>TQM - TQM capitalizes on the involvement of management, workforce, suppliers, and even customers, in order to meet or exceed customer expectations. </li></ul><ul><li>TPM - TPM (Total Productive Maintenance) is a maintenance philosophy designed to integrate equipment maintenance into the manufacturing process. The goal of any TPM program is to eliminate losses tied to equipment maintenance. </li></ul><ul><li>KAIZEN -Kaizen means Continual Improvements. No one can dispute value of the improvement. Kaizen philosophy is based on the fact that our life - be it working-life, social-life, or home life - needs to be constantly improved. You must enlighten yourself on Kaizen and apply in all walks of life. </li></ul>
  4. 4. Introduction <ul><li>Total – Made up of the whole(or) Complete. </li></ul><ul><li>Quality – Degree of Excellence a product or service provides to the customer in present and future. </li></ul><ul><li>Management – Act , art, or manner of handling , controlling, directing, etc. </li></ul><ul><li>TQM is the art of managing the whole to achieve excellence. </li></ul>
  5. 5. Total Quality Management (TQM) is a management strategy aimed at embedding awareness of quality in all organizational processes.
  6. 6. TQM requires that the company maintain this quality standard in all aspects of its business. This requires ensuring that things are done right the first time and that defects and waste are eliminated from operations.
  7. 7. What is Quality <ul><li>CONTINUOUS SATISFACTION OF CUSTOMER REQUIREMENT. </li></ul><ul><li>Q=P/E I.E Q HAS TO BE > 1 </li></ul><ul><li>Q-QUALITY, P-PERFORMANCE, E-EXPECTATION </li></ul><ul><li>QUALITY RELATES TO </li></ul><ul><ul><li>perfection, </li></ul></ul><ul><ul><li>delighting or pleasing the customer, </li></ul></ul><ul><ul><li>eliminating waste, </li></ul></ul><ul><ul><li>doing it right the first time, and/or </li></ul></ul><ul><ul><li>consistency. </li></ul></ul>
  9. 9. Evolution of quality Era 1900 1920 1940 1960 1980 1990 2000 Craftsman Foreman Inspection SQC TQC TQM TQC &CWQC Co-wide quality control Evolution Years
  10. 10. Evolution of quality –Means & Focus 1975 1980 1985 1990 1995 2000 Operation Customers Innovations Quality of Work life Quality Circle Productivity Employee Involvement Quality Employees Empowerment Total Quality Self Directed Teams TQC/TQM Self Directed/ Managed Teams
  11. 11. Kano’s Model
  12. 12. Umbrella Model of TQM SPC JIT TEI Kaizen Quality Assurance Problem- Solving tools Customer Satisfaction Taguchi Methods
  13. 13. Basic Approach <ul><li>A committed and involved management to provide long-term top - to - bottom organizational support. </li></ul><ul><li>An unwavering focus on the customer, both internally and externally. </li></ul><ul><li>Effective involvement and utilization of the entire work force. </li></ul>
  14. 14. Basic Approach <ul><li>Continuous improvement of the business and production process. </li></ul><ul><li>Treating supplier as partners. </li></ul><ul><li>Establish performance measures for the processes. </li></ul>
  15. 15. New and Old Cultures <ul><li>Quality Element TQM </li></ul><ul><li>Definition -Product Customer </li></ul><ul><li>Priorities -Service &Cost Quality </li></ul><ul><li>Decisions- Short Long </li></ul><ul><li>Emphasis- Detection Prevention </li></ul>
  16. 16. New and Old Cultures <ul><li>Errors- Operations System </li></ul><ul><li>Responsibility- QC Every Body </li></ul><ul><li>Problem Solving - Managers Teams </li></ul><ul><li>Procurement- Price Partners/JIT </li></ul><ul><li>Manager’s Role- Plan Delegate </li></ul><ul><li>Assign Coach </li></ul><ul><li>Enforce Mentor </li></ul>
  17. 17. Real Life <ul><li>TQM has being implemented in </li></ul><ul><li>TVS Group </li></ul><ul><li>Boeing Aircraft </li></ul><ul><li>Reliance </li></ul><ul><li>Tata </li></ul><ul><li>L & T </li></ul><ul><li>HMT </li></ul>
  18. 18. QUALITY GURUS - American
  19. 19. QUALITY GURUS - Japanese
  20. 20. <ul><ul><li>Plan: study current situation </li></ul></ul><ul><ul><li>Do: implement plan on trial basis </li></ul></ul><ul><ul><li>Study: determine if trial is working correctly </li></ul></ul><ul><ul><li>Act: standardize improvements </li></ul></ul>The Deming Cycle
  21. 21. Chain Reaction Improve Quality Provide jobs and more jobs Costs decrease because of less rework, fewer mistakes, delays, better use of time & materials Productivity Improves Stay in business Capture market with better quality and price
  22. 22. Deming’s 14 Points <ul><li>Create a vision and demonstrate commitment </li></ul><ul><ul><li>Long-term vision </li></ul></ul><ul><ul><li>Companies purpose is to serve their customers and employees, not simply for profit </li></ul></ul><ul><ul><li>Invest in innovation, training, research </li></ul></ul><ul><ul><li>Improve competitive position </li></ul></ul><ul><ul><li>Top management is responsible for this </li></ul></ul><ul><ul><li>Effective leadership begins with commitment </li></ul></ul>
  23. 23. <ul><ul><li>Quota-driven, adversarial management won’t work </li></ul></ul><ul><ul><li>That ignores importance of quality improvement </li></ul></ul><ul><ul><li>Labor and management have to cooperate to improve the customers’ satisfaction </li></ul></ul><ul><ul><li>Keep training people – turnover does exist </li></ul></ul><ul><li>3 . Understand Inspection </li></ul><ul><ul><li>Routine inspection – let someone else fix it </li></ul></ul><ul><ul><li>Increases costs in the end (no rework in services) </li></ul></ul><ul><ul><li>Inspect your own work and fix it </li></ul></ul>2. Learn the New Philosophy
  24. 24. 4. Don’t Buy on the Cost per Part Basis <ul><ul><li>Don’t buy from several for competition </li></ul></ul><ul><ul><li>Increases variability </li></ul></ul><ul><ul><li>Work with suppliers in long-term relationships </li></ul></ul><ul><ul><li>Improve quality with your suppliers </li></ul></ul><ul><ul><li>Also get volume discounts, fewer setups </li></ul></ul><ul><ul><li>Supplier-customer bond </li></ul></ul>
  25. 25. 5. Improve Constantly and Forever <ul><li>Reduce causes of variation </li></ul><ul><li>Engage all employees </li></ul><ul><ul><li>How to do jobs more efficiently </li></ul></ul><ul><ul><li>More effectively </li></ul></ul><ul><li>Continuous Process Improvement now is mandatory </li></ul>
  26. 26. 6. Institute Training <ul><li>People are a valuable resource and want to do a good job </li></ul><ul><li>They need training to know how to do a good job </li></ul><ul><li>Invest in their future </li></ul><ul><li>Training should include tools for </li></ul><ul><ul><li>Diagnosing </li></ul></ul><ul><ul><li>Analyzing </li></ul></ul><ul><ul><li>Solving quality problems </li></ul></ul><ul><ul><li>Identify improvement opportunities </li></ul></ul>
  27. 27. 7. Institute Leadership <ul><li>The job of management is leadership , not supervision . </li></ul><ul><li>If supervisors don’t know the job, they can’t lead </li></ul><ul><ul><li>Focus on getting product “out the door” </li></ul></ul><ul><li>Good supervisors are coaches, not prison guards </li></ul>
  28. 28. 8. Drive Out Fear <ul><li>Managers and workers must have mutual respect, 2 way communication </li></ul><ul><li>Pointing out quality problems and will everybody will work effectively </li></ul>
  29. 29. 9. Optimize the Efforts of Teams <ul><li>People have to understand what customers want </li></ul><ul><li>No barrires should be there between R&D, Sales, Admin, Production…. </li></ul><ul><li>Team should tackle the problem </li></ul>
  30. 30. 10. Eliminate Exhortations <ul><li>Do you work better with a poster on the wall? </li></ul><ul><li>Slogans assume quality problems caused by people </li></ul><ul><li>Deming thinks the system is responsible for problems </li></ul><ul><li>Workers demoralized when they cannot fix defects, and yet are held accountable </li></ul><ul><li>Workers’ attempts to fix problems only cause more variation </li></ul>
  31. 31. 11. Eliminate Numeric Quotas <ul><li>They do not encourage improvement </li></ul><ul><ul><li>If you do improve it, they’ll just raise the quota </li></ul></ul><ul><li>Risk of missing quotas </li></ul><ul><li>Once you meet the standard, why try harder? </li></ul><ul><li>Arbitrary (random) goals are demoralizing without a plan of how you can reach those goals </li></ul><ul><li>Variability in system year-to-year </li></ul><ul><li>Use statistical method to improve quality </li></ul>
  32. 32. 12. Remove Barriers to Pride in Workmanship <ul><li>People are treated like a commodity </li></ul><ul><li>Work nights to make up for cut positions </li></ul><ul><li>Don’t make your people compete against each other </li></ul><ul><li>Behavior driven by what boss wants, not Quality </li></ul>
  33. 33. 13 Education & Self-Improvement <ul><li>Not job-specific </li></ul><ul><li>Many benefits, some specific to job, others broader </li></ul><ul><li>An org not only need good people but also people who improve with education </li></ul>
  34. 34. 14. Commitment from Top <ul><li>Accomplish the Transformation </li></ul><ul><li>Start the cultural change with top management </li></ul><ul><li>People will be skeptical until they start to see change </li></ul>
  36. 36. CORE CONCEPT OF TQM <ul><li>Quality for profit </li></ul><ul><li>Right first time </li></ul><ul><li>Acceptable Quality levels </li></ul><ul><li>Cost of quality </li></ul><ul><ul><li>Failure Cost costs caused by defective parts, products, or faulty services . Internal - failures discovered during production (e.g. rework, problems, material/product losses, downtime) . External - failures discovered after delivery (e.g. warranty, returned goods, liability claims, penalties) </li></ul></ul><ul><ul><li>Appraisal Cost costs of activities designed to ensure quality or uncover defects (e.g. in-line inspection, final inspection, field testing, crash test dummies, crumpled cars) </li></ul></ul><ul><ul><li>Prevention cost costs of preventing defects from occurring (e.g. training, working with vendors, quality control procedures, quality improvement programs, extra attention in design and production) </li></ul></ul><ul><ul><li>Hidden cost Potential lost sale, scrap not reported, cost of design or software change due to quality reason) </li></ul></ul>
  38. 38. PRODUCT PROCESS SYSTEM PEOPLE LEADERSHIP FIVE PILLARS OF TQM Effectiveness Hard Aspect Suitability Soft Aspect Confluence
  40. 40. 1. TPM definition (1) <ul><li>A company-wide team-based effort to build quality into equipment and to improve overall equipment effectiveness </li></ul><ul><li>Total </li></ul><ul><ul><li>all employees are involved </li></ul></ul><ul><ul><li>it aims to eliminate all accidents, defects and breakdowns </li></ul></ul><ul><li>Productive </li></ul><ul><ul><li>actions are performed while production goes on </li></ul></ul><ul><ul><li>troubles for production are minimized </li></ul></ul><ul><li>Maintenance </li></ul><ul><ul><li>keep in good condition </li></ul></ul><ul><ul><li>repair, clean, lubricate </li></ul></ul>
  41. 41. 1. TPM definition (2) <ul><li>TPM combines the traditionally American practice of preventive maintenance with Total Quality Control and Total Employee Involvement, to create a culture where operators develop ownership of their equipment, and become full partners with Maintenance, Engineering and Management to assure equipment operates properly everyday. </li></ul>
  42. 42. 2. Origins of TPM <ul><li>Dr. Deming introduced statistical analysis and used the resulting data to control quality during manufacturing (TQM) </li></ul><ul><li>Some general concepts of TQM did not work well in the maintenance environment </li></ul><ul><li>The need to go further than preventive maintenance was quickly recognized by those companies who were committed to TQM </li></ul><ul><li>Maintenance became an integral part of TQM in the early 90’s </li></ul>
  43. 43. 3. TPM principles <ul><li>Increase Overall Equipment Effectiveness (OEE) </li></ul><ul><li>Improve existing planned maintenance systems </li></ul><ul><li>The operator is the best condition monitor </li></ul><ul><li>Provide training to upgrade operations and maintenance skills </li></ul><ul><li>Involve everyone and utilize cross-functional teamwork </li></ul>
  44. 44. 4. Eight major pillars of TPM Education and training Safety and environmental management Autonomous Maintenance Planned Maintenance Equipment and process improvement Early management of new equipment Process quality management TPM in the office
  45. 45. 4. Eight major pillars of TPM Autonomous Maintenance (1) <ul><li>Train the operators to close the gap between them and the maintenance staff, making it easier for both to work as one team </li></ul><ul><li>Change the equipment so the operator can identify any abnormal conditions and measure deterioration before it affects the process or leads to a failure </li></ul>
  46. 46. 4. Eight major pillars of TPM 4.1. Autonomous Maintenance (2) <ul><li>7 steps are implemented to progressively increase operators knowledge, participation and responsibility for their equipment </li></ul><ul><ul><li>1. Perform initial cleaning and inspection </li></ul></ul><ul><ul><li>2. Countermeasures for the causes and effects of dirt and dust </li></ul></ul><ul><ul><li>3. Establish cleaning and lubrication standards </li></ul></ul><ul><ul><li>4. Conduct general inspection training </li></ul></ul><ul><ul><li>5. Carry out equipment inspection checks </li></ul></ul><ul><ul><li>6. Workplace management and control </li></ul></ul><ul><ul><li>7. Continuous improvement </li></ul></ul>
  47. 47. 4. Eight major pillars of TPM 4.2. Equipment and process improvement <ul><li>Objective : maximize efficiency by eliminating waste and manufacturing losses </li></ul><ul><li>Manufacturing losses are categorized into 13 big losses: </li></ul><ul><ul><li>Equipment losses (6) </li></ul></ul><ul><ul><li>Manpower losses (4) </li></ul></ul><ul><ul><li>Material losses (3) </li></ul></ul>
  48. 48. 4. Eight major pillars of TPM 4.2. Equipment and process improvement 4.2.1. Equipment losses Downtime loss Speed loss Quality loss Equipment failure / breakdowns Set-up / adjustments Minor stopping / idling Reduced speed Process errors Rework / scrap
  49. 49. 4. Eight major pillars of TPM 4.2. Equipment and process improvement 4.2.2. Manpower and material losses Manpower losses Material losses Cleaning and checking Waiting instructions Waiting quality confirmation Material yield Energy losses Waiting materials Consumable material losses
  50. 50. 4. Eight major pillars of TPM 4.2. Equipment and process improvement 4.2.3 Overall Equipment Effectiveness (OEE) <ul><li>OEE figures are determined by combining the availability and performance of your equipment with the quality of parts made </li></ul><ul><li>OEE measures the efficiency of the machine during its planned loading time. Planned downtime does not effect the OEE figure. </li></ul>
  51. 51. 4. Eight major pillars of TPM 4.2. Equipment and process improvement 4.2.3 Overall Equipment Effectiveness (OEE) Overall Equipment Effectiveness = Availability x Performance x Quality Yield Availability Downtime loss Speed loss Performance Quality Yield Quality loss
  52. 52. 4. Eight major pillars of TPM 4.2. Equipment and process improvement 4.2.3 Overall Equipment Effectiveness (OEE) Overall Equipment Effectiveness = Availability x Performance x Quality Yield Availability = time available for production - downtime time available for production Performance = ideal cycle time x number of parts produced operating time Quality Yield = total number of parts produced - defect number total number of parts produced
  53. 53. 4. Eight major pillars of TPM 4.3. Planned maintenance <ul><li>Objective : establish Preventative and Predictive Maintenance systems for equipment and tooling </li></ul><ul><li>Natural life cycle of individual machine elements must be achieved </li></ul><ul><ul><ul><li>Correct operation </li></ul></ul></ul><ul><ul><ul><li>Correct set-up </li></ul></ul></ul><ul><ul><ul><li>Cleaning </li></ul></ul></ul><ul><ul><ul><li>Lubrication </li></ul></ul></ul><ul><ul><ul><li>Retightening </li></ul></ul></ul><ul><ul><ul><li>Feedback and repair of minor defects </li></ul></ul></ul><ul><ul><ul><li>Quality spare parts </li></ul></ul></ul>
  54. 54. 4. Eight major pillars of TPM 4.4. Early Management of new equipment <ul><li>Objective: establish systems to shorten </li></ul><ul><ul><li>new product or equipment development </li></ul></ul><ul><ul><li>start-up, commissioning and stabilization time for quality and efficiency </li></ul></ul><ul><li>New equipment needs to be: </li></ul><ul><ul><li>easy to operate </li></ul></ul><ul><ul><li>easy to clean </li></ul></ul><ul><ul><li>easy to maintain and reliable </li></ul></ul><ul><ul><li>have quick set-up times </li></ul></ul><ul><ul><li>operate at the lowest life cycle cost </li></ul></ul>
  55. 55. 4. Eight major pillars of TPM 4.5. Process Quality Management <ul><li>Definition: a process for controlling the condition of equipment components that affect variability in product quality </li></ul><ul><li>Objective: to set and maintain conditions to accomplish zero defects </li></ul><ul><li>Quality rate has a direct correlation with </li></ul><ul><ul><li>material conditions </li></ul></ul><ul><ul><li>equipment precision </li></ul></ul><ul><ul><li>production methods </li></ul></ul><ul><ul><li>process parameters </li></ul></ul>
  56. 56. 4. Eight major pillars of TPM 4.6. TPM in administrative and support departments <ul><li>Administrative and support departments can be seen as process plants whose principal tasks are to collect, process, and distribute information </li></ul><ul><li>Process analysis should be applied to streamline information flow </li></ul>
  57. 57. 4. Eight major pillars of TPM 4.7. Education and training <ul><li>TPM is a continuous learning process. </li></ul><ul><li>2 major components </li></ul><ul><ul><li>soft skills training: how to work as teams, diversity training and communication skills </li></ul></ul><ul><ul><li>technical training: upgrading problem-solving and equipment- related skills </li></ul></ul>
  58. 58. 4. Eight major pillars of TPM 4.8. Safety and environmental management <ul><li>Assuring safety and preventing adverse environmental impacts are important priorities in any TPM effort </li></ul>
  59. 59. 5. TPM implementation 3 requirements for fundamental improvement <ul><li>Increasing motivation: changing peoples attitudes </li></ul><ul><li>Increasing competency and peoples skills </li></ul><ul><li>Improving the work environment, so that it supports the establishment of a program for implementing TPM </li></ul>
  60. 60. 5. TPM Implementation 12 steps Preparation Kick-off Implementation Announcement to introduce TPM Introductory education campaign for the workforce TPM Promotion (special committees) Establish basic TPM policies and goals Preparation and Formulation of a master plan Develop an equipment management program Develop a planned maintenance program Develop an autonomous maintenance program Increase skills of production and maintenance personnel Perfect TPM implementation and raise TPM levels Stabilization Develop early equipment management program Invite customers, affiliated companies and subcontractors
  61. 61. 5. TPM Implementation 5.1. Announce top management’s decision to introduce TPM <ul><li>State TPM objectives in a company newsletter </li></ul><ul><li>Place articles on TPM in the company newspaper </li></ul>
  62. 62. 5. TPM Implementation 5.2. Introductory education campaign <ul><li>Seminars for managers </li></ul><ul><li>Slide presentations for all employees </li></ul>
  63. 63. 5. TPM Implementation 5.3. TPM Promotion <ul><li>Special committees at every level to promote TPM </li></ul><ul><li>Newsletters </li></ul><ul><li>Articles </li></ul><ul><li>Videos </li></ul><ul><li>Posters </li></ul>
  64. 64. 5. TPM Implementation 5.4. Establish basic TPM policies and goals <ul><li>Analyze existing conditions </li></ul><ul><li>Set goals </li></ul><ul><li>Predict results </li></ul>
  65. 65. 5. TPM Implementation 5.5. Preparation and Formulation of a master plan <ul><li>A master plan lays out your goals, what you will do to achieve them and when you will achieve them </li></ul><ul><li>Detailed plans for each pillar have to be prepared </li></ul>
  66. 66. 5. TPM Implementation 5.6. TPM kick-off <ul><li>The main kick-off to TPM should take the form of a formal presentation with all the employees attending </li></ul><ul><li>This opportunity can be used to gain the full support of the employees </li></ul><ul><li>Invite external customers, affiliated and subcontracting companies </li></ul>
  67. 67. 5. TPM Implementation 5.7. Develop an equipment management program (1) <ul><li>The tools of Total Quality Management and Continuous Improvement are applied to the management and improvement of equipment </li></ul><ul><li>Form project teams </li></ul><ul><li>Select model equipment </li></ul><ul><ul><li>identify equipment problems </li></ul></ul><ul><ul><li>analyze equipment problems </li></ul></ul><ul><ul><li>develop solutions and proposals for improvement </li></ul></ul>
  68. 68. 5. TPM Implementation 5.7. Develop an equipment management program (2) <ul><li>Typical membership of a team </li></ul><ul><ul><li>five to seven operators </li></ul></ul><ul><ul><li>a maintenance person </li></ul></ul><ul><ul><li>a technical expert </li></ul></ul><ul><li>Tools </li></ul><ul><ul><li>Pareto </li></ul></ul><ul><ul><li>Cause & effect </li></ul></ul><ul><ul><li>Root cause </li></ul></ul><ul><ul><li>Methods Analysis </li></ul></ul>
  69. 69. 5. TPM Implementation 5.8. Develop a planned maintenance program <ul><li>Set up plans and schedules to carry out work on equipment before it breaks down, in order to extend the life of the equipment </li></ul><ul><li>Include periodic and predictive maintenance </li></ul><ul><li>Include management of spare parts and tools </li></ul>
  70. 70. 5. TPM Implementation 5.8. Develop a autonomous maintenance program <ul><li>A handing-over of maintenance tasks from specialized maintenance personnel to production operators </li></ul><ul><li>Promote the seven steps </li></ul><ul><li>Tasks to hand over </li></ul><ul><ul><li>cleaning </li></ul></ul><ul><ul><li>lubricating </li></ul></ul><ul><ul><li>inspecting </li></ul></ul><ul><ul><li>set-up and adjustment </li></ul></ul>
  71. 71. 5. TPM Implementation 5.10. Increase skills of production and maintenance personnel <ul><li>The training sessions must be planned shortly after the kick-off presentation. </li></ul><ul><li>2 major components </li></ul><ul><ul><li>soft skills training </li></ul></ul><ul><ul><li>technical training </li></ul></ul><ul><li>Train leaders together </li></ul><ul><li>Have leaders share information with group members </li></ul>
  72. 72. 5. TPM Implementation 5.11. Develop early equipment management program(1) <ul><li>The principle of designing for maintenance prevention can be applied to new products, and to new and existing machines. </li></ul><ul><li>New products must be designed so that they can be easily produced on new or existing machines </li></ul><ul><li>New machines must be designed for easier operations, changeover and maintenance </li></ul>
  73. 73. 5. TPM Implementation 5.11. Develop early equipment management program(2) <ul><li>Existing machines : </li></ul><ul><ul><li>analyze historical records for </li></ul></ul><ul><ul><ul><li>trends of types of failures </li></ul></ul></ul><ul><ul><ul><li>frequency of component failures </li></ul></ul></ul><ul><ul><ul><li>root causes of failures </li></ul></ul></ul><ul><ul><li>determine how to eliminate the problem and reduce maintenance through an equipment design change or by changing the process </li></ul></ul>
  74. 74. 5. TPM Implementation 5.12. Perfect TPM implementation and raise TPM levels <ul><li>Evaluate for the PM Award: The Japanese Institute for Productive Maintenance runs the annual PM Excellence Award. They provide a checklist for companies applying for the award. </li></ul><ul><li>Set higher goals </li></ul>
  75. 75. 6. TPM Benefits <ul><li>Increased equipment productivity </li></ul><ul><li>Reduced equipment downtime </li></ul><ul><li>Increased plant capacity </li></ul><ul><li>Lower maintenance and production costs </li></ul><ul><li>Approaching zero equipment-caused defects </li></ul><ul><li>Enhanced job satisfaction </li></ul><ul><li>Increased Return On Investment </li></ul>
  76. 76. Production Methods & Kaizen
  77. 77. Production Methods & Kaizen
  78. 78. Production Methods
  79. 79. Efficiency <ul><li>Any production method relies on efficiency – this can be viewed in different ways: </li></ul><ul><li>Productivity – a measurement of output per unit of the factor used (labour, capital or land) </li></ul><ul><li>Total Output </li></ul><ul><li>Productivity = ------------------- </li></ul><ul><li>Units of Factor </li></ul><ul><li>Technical Efficiency – output produced using the fewest possible inputs </li></ul><ul><li>Productive Efficiency – output produced at the lowest possible cost </li></ul>
  80. 80. Efficiency <ul><li>Production decisions involve deciding methods for new production runs and analysis of existing methods. </li></ul><ul><li>Decisions may include: </li></ul><ul><ul><li>Substitute machinery for labour? </li></ul></ul><ul><ul><li>Use of new technology? </li></ul></ul><ul><ul><li>Organisation of the production layout? </li></ul></ul><ul><ul><li>Change of production method? </li></ul></ul>
  81. 81. Production Methods <ul><li>The choice of production method and the factor inputs depends on such things as: </li></ul><ul><li>the nature of the product factor costs </li></ul><ul><li>the scale of production </li></ul>
  82. 82. Production Decisions Which method? Type of Product One-Off Order? Mass Market product? Batch? Market size and Segment Factor Costs – Land, Labour and Capital Complexity of design
  83. 83. Production Methods <ul><li>Job Production – One-off production - each item might have particular specifications </li></ul><ul><li>Flow Production – suitable for mass market products that are identical </li></ul><ul><li>Batch Production – each stage of the production process has an operation completed on it before moving on to the next stage – allows modifications to be made to products that otherwise are the same </li></ul>
  84. 84. Production Methods Which is more efficient? Operation 1 2 3 4 5 6 7 8 9 10 11 Finished Product
  85. 85. Production Methods Operation 1 1a 1b 1c 1d 2a 2b 2c 3a 3b 3c 3d 4 Finished product Or this?
  86. 86. Production Methods Or this? Cell 1 Cell 2 Cell 3 Finished Product Finished Product Finished Product
  87. 87. Production Methods <ul><li>Answer – it could be any of them! </li></ul><ul><li>The design of the production space can influence: </li></ul><ul><ul><li>Output levels </li></ul></ul><ul><ul><li>Factor use </li></ul></ul><ul><ul><li>Efficiency </li></ul></ul><ul><ul><li>Cost levels </li></ul></ul><ul><ul><li>Quality assurance procedures </li></ul></ul>
  88. 88. Kaizen (Continuous Improvement)
  89. 89. Kaizen (Continuous Improvement) <ul><li>Japanese concept – not made redundant by the decline of the Japanese economy which may be due to other institutional factors! </li></ul><ul><li>Focus on gradual and continuous improvement </li></ul><ul><li>A whole business philosophy </li></ul><ul><li>Importance of EVERYONE buying into the concept and the vision </li></ul>
  90. 90. Kaizen <ul><li>Great attention paid to customer requirements and needs </li></ul><ul><li>Efficient stock control methods help reduce costs and improve cash-flow </li></ul><ul><li>Flexible working practices and empowerment – help increase efficiency, reduce costs and improve motivation </li></ul><ul><li>Leadership seen as vital. Ability to communicate a clear vision, take people along with the vision and to think about where the company needs to be in 5, 10, 15 and 20 years time </li></ul><ul><li>Fundamental principles – often characterised as ‘lean production’ – reducing waste, zero defects, high quality control measures at all stages </li></ul><ul><li>Punctuality in all aspects – delivery, supply, manufacture, etc. </li></ul>
  91. 91. Kaizen Training COMPETING IN THE MARKETPLACE “ What factors are important to the customer?” John Deere - Supplier Development
  92. 92. Kaizen Training TIME: The single best indicator of competitiveness Customer Lead Time / Delivery Time Working to reduce or minimize each of these times can make your company more valuable to both its internal and external customers. Set-up or Change-over Time Product Development Time Manufacturing Cycle Time
  93. 93. Kaizen Training Shrinking Lead Times Reducing the overall time from receiving the order to delivering the product makes your company more responsive to the customer. This can become the deciding factor when the customer makes their selection. As can be seen, manufacturing is only one part of the entire process. Inputting, processing, and issuing orders is an area for improvement, as well as, assembly, loading and delivery to the customer` Order Lead Times Manufacturing Lead Times Delivery Lead Times Manufacturing Lead Times Order Lead Times Delivery Lead Times
  94. 94. Kaizen Training Where’s the Time in Lead Time This timeline represents an overall lead-time, with very little time spent on adding value to the product. Improvement Efforts Concentrated on reducing VA time, with no attention given to NVA. Results of Common Improvement efforts, did not improve response time. VA time is reduced, but, the costs for those improvements in lead time was substantial. Common Non-Value Added Time (NVA) 99% of Total Lead time Value Added Time (VA) 1% Non-Value Added Time (NVA) 99% of Total Lead time VA 1/2 %
  95. 95. Kaizen Training Where’s the Time in Lead Time When we look at attacking the NVA Activities in the Timeline and compare that to the original timeline: This shows a 5X improvement in lead time Great Job!! Greatest Opportunities are actually here! NVA Time 95% of Total Lead time VA 5% Non-Value Added Time (NVA) 99% of Total Lead time Value Added Time (VA) 1%
  96. 96. Kaizen Training Different Types of Activities Being able to tell the difference between NVA and VA activities is an important step in the Improvement Process. Value Added Activity (VA) An activity that changes raw material to meet customer expectations. Non Value Added Activity (NVA) Those activities that take time, or occupy space but do not add to the value of the product. You must ask yourselves “Would you as a customer be willing to pay for any NVA activity being performed to that NEW 4x4 Pickup you just ordered?”
  97. 97. Kaizen Training Some examples NVA Activities: Walking Waiting on machine cycle Transporting parts Generating useless reports THE GOAL IS TO ELIMINATE THE NON-VALUE ADDED ACTIVITIES. Unnecessary motion Unnecessary stock on hand
  98. 98. KAIZEN A definition: Destroy, in our minds, the concepts and techniques of manufacturing that we practice today. Create a vision of what our production system and manufacturing techniques should be. Carry out that Vision by breaking through the status quo. We must avoid the urge to discover more sophisticated and technological solutions to tasks we shouldn’t be doing at all.
  99. 99. Kaizen Training Basic Rules for Change Keep an open mind to change No such thing as a dumb question or idea Avoid spending money (Capital expense should be a last resort) Think about how to do it, NOT why it can’t be done Maintain a positive attitude Don’t’ make excuses & question current practices Just do it!! Have Fun!!!
  100. 100. Kaizen Training The 5S Housekeeping Standards First Step towards Continuos Improvement The aim of 5S is to create an atmosphere to keep a clean, organized, safe and efficient workplace for everyone. The foundation for the practice of 5S, comes from a Japanese program derived from these words, seiri, seiton, seiso, seiketsu and shitsuke . The 5S’s are a conventional approach towards maintaining and improving the work place. The following words have been chosen for the 5S acronym’s. Sort Sustain Sanitize (Safety) Straighten Sweep
  101. 101. Kaizen Training Meaning of the 5S’s Sort Straighten Sweep (Scrubbing clean) Examine everything at the workplace & identify what is needed and what can be discarded Organizing the way things are put away with efficiency, quality, and safety in mind. Need to decide where and how things should be put away and what rules should be obeyed to insure that it is maintained. Sweeping, scrubbing and cleaning of the building, machines, fixtures & tools so that all areas of the workplace are neat & tidy. This leads to early detection of mechanical problems before they become major breakdowns. Machines cry!
  102. 102. Kaizen Training Sanitize (Safety) Sustain (Standardize) Meaning of the 5S’s Insuring that each workplace is properly designed for safety. This is to protect every member from the dangers during the performance of their assigned tasks. Developing the practice necessary to continually participate in the 5S process. This requires that each of the S’s become a personal habit. This is the most difficult of the 5S’s, but it is the most important factor in achieving long term success. Establishing routines and procedures for maintaining and improving on the first four (S’s), incorporating visual management tools.
  103. 103. Kaizen Training WASTE
  104. 104. Kaizen Training Do MORE with LESS Waste Productivity Staffing Productivity
  106. 106. 1. Transportation - Transporting 1. Transportation - Carrying farther than necessary or Tools to Point of Use temporarily locating, filing, stacking and moving parts (people, paper, information) is waste. 2. Correction - Doing something 2. Correction - Redo an Activity over is waste. Because of Error 3. Overproduction - Generating 3. Overproduction - Number of excess paper or information, or Copies generating information or paper too soon in a process is waste. Definition Example ELEMENTS OF WASTE
  107. 107. 4. Motion - Unnecessary work 4. Motion - Tools in drawers movements are a form of waste. 5. Waiting - Waiting for people, 5. Waiting - Meetings to start paper and information is waste - it stops work. 6. Inventory - Too much of 6. Inventory - Supplies anything is waste. 7. Processing - this is waste in 7. Processing - Typed when the process itself. Redundant handwritten would be activities sufficient Definition Example ELEMENTS OF WASTE
  108. 108. Kaizen Training Standards Enforce Inspect . Stabilize Identify Waste Improve Problem Solve Standardize <ul><li>Process requires ongoing inspection and enforcement to </li></ul><ul><li>ensure “Standardized Work” is being followed </li></ul><ul><li>Process does not improve automatically </li></ul>- Following standards will only maintain, not improve, the process. - Improvement focuses on the entire process.
  109. 114. TQM 1- Pareto chart      2- Histogram      3- Fish Bone      4- Flow Chart      5-Check points   6- Scatter Diagram      7- Control Charts 8- Activity Network Diagram      9- Affinity diagram      10- Interrelationship Diagram      11- Matrix Diagram      12- Priorities Matrix      13- Process Decision 14- Tree Diagram PROCESS 15- Root cause analysis      16- Five Whys      17- PDCA-PDSA      18- SIPOC      19- FMEA INNVATION & CREATIVITY 1- Creative thinking      2- Brainstorming      3- Mind Mapping      4- Analogies     5- Lateral thinking      6- Triz      7- SCAMPER LEAN SIX SIGMA 1- Anova                    2- balanced-scorecard              3- Capability 4-Chi-Square                       5-Kanban                       7-Mistake-proofing                   9-One-Piece-Flow 10-Priorities-matrix                                             11-Quick-Changeover 12-project-selection                 13-Regression                          17-Statistical-Process-Control                                            19-Total-Productive-Maintenance                     
  110. 115. Thank You Please visit http://anubhamaurya.blogspot.com/