The document discusses factors that are important for competitiveness, including reducing lead times. It emphasizes minimizing non-value added activities and times to improve response times for customers. This includes reducing order, manufacturing, and delivery lead times. The document also discusses takt time calculation, the 5S methodology for organizing the workplace, and steps for effective team development.

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Kaizen Training
Competing in the Marketplace
“What factors are important to the customer?”
John Deere - Supplier Development
John Deere
Supplier Development

2. Kaizen Training 2
TIME: The single best indicator
of competitiveness
Set-up or Change-over Time
Manufacturing Cycle Time
Product Development Time
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.
John Deere
Supplier Development

3. Kaizen Training 3
Shrinking Lead Times
Order Lead Times Manufacturing Lead Times Delivery Lead Times
Order Lead Times Manufacturing Lead Times Delivery 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`
John Deere
Supplier Development

4. Kaizen Training 4
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.
Non-Value Added Time (NVA) Value Added Time (VA)
99% of Total Lead time 1%
Common Concentrated on reducing VA time,
Improvement Efforts with no attention given to NVA.
Non-Value Added Time (NVA) VA
99% of Total Lead time 1/2 %
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.
John Deere
Supplier Development

5. Kaizen Training 5
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:
Greatest Opportunities are actually here!
Non-Value Added Time (NVA) Value Added Time (VA)
99% of Total Lead time 1%
NVA Time VA
95% of Total Lead time 5%
Great Job!! This shows a 5X improvement in lead time
John Deere
Supplier Development

6. Kaizen Training 6
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 An activity that changes raw
Activity (VA) material to meet customer
expectations.
Those activities that take
Non Value Added time, or occupy space but
Activity (NVA) 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?”
John Deere
Supplier Development

7. Kaizen Training 7
Some examples NVA Activities:
Waiting on
Walking
machine cycle
Unnecessary Generating
stock on hand useless reports
Unnecessary
Transporting motion
parts
THE GOAL IS TO ELIMINATE THE
NON-VALUE ADDED ACTIVITIES.
John Deere
Supplier Development

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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.
We must avoid the urge to Carry out that Vision by
discover more sophisticated and
technological solutions to tasks breaking through the status
we shouldn’t be doing at all. quo.
John Deere
Supplier Development

9. Kaizen Training 9
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)
Maintain a positive attitude
Don’t’ make excuses & question current practices
Think about how to do it, NOT why it can’t be done
Just do it!!
Have Fun!!!
John Deere
Supplier Development

10. Kaizen Training 10
Steps on Team Development
Forming This is the development of a multi-functional
team with a variation of backgrounds and
knowledge
Storming Open & honest discussion, also brainstorming
Norming Stage where the group agrees how to
operate as a team
Performing Agreement on solutions & taking action
Adjourning Closing on the continuos improvement process
after 30 days
John Deere
Supplier Development

11. Kaizen Training 11
What is TAKT Time?
TAKT time is how many minutes or seconds are needed
to make one part when considering the daily volumes, to
be produced in that workcell and the total time available to
perform the job.
TAKT time is NOT the time it takes to manufacture the
product. It is based on customer demand.
Who is the customer?
The next operation
Customer orders
John Deere
Supplier Development

12. Kaizen Training 12
TAKT Time Calculation
Production Time Available / Period
TAKT
Number of Required Units / Period
Production Time Available / Period (one shift):
Shift Time ( 8 hrs. ) 480 mins.
Breaks - 2 @ 10 minutes - 20 mins.
Clean-up at end of shift - 5 mins.
Production Time Available: 455 mins. or 27,300 secs.
Units Required / Period (one shift):
10,500 Units Sold Monthly
500 Required units / shift
21 Working shifts / month
27,300 secs / shift
TAKT Time: 500 units / shift
54.6 secs.
John Deere
Supplier Development

13. Kaizen Training 13
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 Sanitize (Safety) Sweep
Straighten Sustain
John Deere
Supplier Development

14. Kaizen Training 14
Meaning of the 5S’s
Sort Examine everything at the workplace & identify
what is needed and what can be discarded
Straighten 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.
Sweep Sweeping, scrubbing and cleaning of the building,
(Scrubbing clean)
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!
John Deere
Supplier Development

15. Kaizen Training 15
Meaning of the 5S’s
Sanitize Insuring that each workplace is properly
(Safety)
designed for safety. This is to protect every
member from the dangers during the
performance of their assigned tasks.
Sustain Developing the practice necessary to continually
participate in the 5S process. This requires that
(Standardize)
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.
John Deere
Supplier Development

16. Kaizen Training 16
WASTE
John Deere
Supplier Development

17. Kaizen Training 17
Do MORE with LESS
Staffing Productivity
Waste Productivity
John Deere
Supplier Development

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SHIFT MINDSET
CURRENT REQUIRED
THINKING THINKING
Processing Transportation
Inventory Correction
TYPES
WASTE
OF
WASTE
Over-
Waiting Production
Motion
WASTE NOT DEFINED WASTE IS "TANGIBLE”
REACT TO LARGE EXAMPLES IDENTIFY MANY SMALL OPPORTUNITIES
REACTIVE IMPROVEMENT -LEADS TO LARGE OVERALL CHAGE
CONTINUOUS IMPROVEMENT
John Deere
Supplier Development

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ELEMENTS OF WASTE
Definition Example
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.
John Deere
Supplier Development

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ELEMENTS OF WASTE
Definition Example
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
John Deere
Supplier Development

21. Kaizen Training 21
• Process requires ongoing inspection and enforcement to
ensure “Standardized Work” is being followed
Standards
Inspect
Enforce
• Process does not improve automatically
Standardize
Im
Problem Solve
Stabilize
pr
.
ov
e
Identify
Waste
- Following standards will only maintain, not improve, the process.
- Improvement focuses on the entire process.
John Deere
Supplier Development