4. Identify Waste
Operational Activity
Value Added Operations – Any process that
changes the nature ,Shape or Characteristic of the
Product in line with Customer requirement
e.g. Pressing , Welding , Machining , Heat
Treatment.
This is Where we make Profit !
5. Identify Waste
Operational Activity
Non Value Added Operations – Work carried
out which is necessary under current
conditions, but doesn't increase product value.
E.g Tool Change , Maintenance.
This is Where we make Loss!
9. • C
• L
• O
• S
• E
• M
• I
• T
Complex
Labor Hands Off
Over Production
Space
Energy
Movement
Idle Time
Transportation
How to Identify Waste
10.
11. Masaaki Imai
Born 1930, in Tokyo
He is a consultant in the field of quality management.
Known as the “Lean Guru” and the father of Continuous Improvement (CI)
Masaaki Imai has been a pioneer and leader in spreading
the Kaizen philosophy all over the world.
HISTORY
16. Ten Basic Principles of
Kaizen
– Throw out all your old fixed ideas on how to do things
– No blame -treat others as you want to be treated treat others as you
want to be treated
– Think positive – don’t say can’t
– Don t’ wait for perfection 50% improvement now is fine wait for
perfection. 50% improvement now is fine
– Correct mistakes as soon as they are found
– Don’t substitute money for thinking substitute money for thinking
– Creativity before Creativity before Capital
– Keep asking why until you get to the root cause asking why until you get
to the root cause
– Better the wisdom of 5 people that the expertise of 1
– Base decisions on data not opinions decisions on data not opinions
– Improvement is not made from a conference room!
27. 6
What Do I need to do to improve my Game?
GUTTER!
28.
29. 3 Sigma Vs. 6 Sigma
The 3 sigma Company The 6 sigma Company
• Spends 15~25% of sales dollars
on cost of failure
• Spends 5% of sales dollars on
cost of failure
• Relies on inspection to find
defects
• Relies on capable process that
don’t produce defects
• Does not have a disciplined
approach to gather and analyze
data
• Use Measure, Analyze, Improve,
Control and Measure, Analyze,
Design
• Benchmarks themselves
against their competition
• Benchmarks themselves
against the best in the world
• Believes 99% is good enough • Believes 99% is unacceptable
• Define CTQs internally • Defines CTQs externally
30. 99.9% is already VERY GOOD
But what could happen at a quality level of 99.9% (i.e., 1000 ppm),
in our everyday lives (about 4.6)?
31. 1 hour of unsafe drinking water every month
2 Unsafe plane landings per day ay O’Hara
International Airport in Chicago.
50 newborn babies dropped at birth by
doctors everyday.
20,000 incorrect drug prescriptions per year
500 incorrect surgical operations each week
22,000 checks deducted from wrong bank
accounts
Process @ 99.9%
32. 32,000 Missed heartbeats per person , per year.
12 Newborns given to the wrong parents daily.
114,500 mismatched pairs of shoes shipped
each year.
18,322 mishandled pieces of mail each hour.
2.5 Million books shipped with wrong covers.
315 misspelled entries in Webster's Dictionary.
Process @ 99.9%
