The document provides an overview of lean production principles and the system kaizen process for continuous improvement. It describes the Plan-Do-Check-Act cycle and how to document an improvement project using the A3 report format. The A3 report guides teams through defining the current condition, target condition, implementation plan, key performance indicators, and approval process. The goal is to standardize improvements to sustain gains over time on the path towards an ideal lean system with continuous flow and zero waste.

1. System Kaizen ProcessLean Production

2. PDCA

3. A3

4. Business Case

5. Initial Condition

6. Target Condition

7. Implementation

8. Indicators

9. Approval2“Lean Production” stands for...... a philosophy, as well as production techniques, for “cutting the fat” from production processes. …the complete and through elimination of waste to reduce the timeline from receipt of customer order to delivery....quick and agile as it provides the flexibility and speed to design and produce a wide variety of products customized to specific orders and delivered with extremely short lead times.... customer orientation, orientation for quality and cost reduction.…the right part, in the right quantity, at the right moment, in the right quality,at the right place....increase of efficiency and standardization by continuous improvements....the highest quality, lowest cost, shortest lead time... ...A business system for organizing and managing product development, operations, suppliers, and customer relations that require less human effort, less space, less capital, less material, and less time to make products with fewer defects to precise customer desires.2/6/2011

10. 3Plan, Do, Check, Act (PDCA)An improvement cycle based on the scientific method of proposing a change in a process, implementing the change, measuring the results, and taking appropriate action.StandardizeThe PDCA cycle has four stages:Plan: Determine goals for a process and needed changes to achieve them.Do: Implement the changes.Check: Evaluate the results in terms of performance.Act: Standardize and stabilize the change or begin the cycle again, depending on the results. Grasp the Situation2/6/2011

11. 4A3 ReportA one page storyboard on 11”x17” paper, commonly known as A3-size paper. Logic flows from the top left to the bottom right, and each box leads to the next one.An A3 includes both analysis (number-crunching) and synthesis (storytelling). It’s a practice of getting the problem, the analysis, the corrective actions, and the action plan on a single sheet of paper. The primary purpose of the A3 is to gain a shared understanding of critical issues in order to solve problems and get results. It’s a way of thinking.2/6/2011

12. 5A3 ReportProject Name:Implementation:Background / Business Case:Initial Condition:IndicatorsTarget Condition:Approval2/6/2011

13. 6Define the Business CaseIncreasing Customer expectations require improved quality, delivery, and costNeed to improve cost competitiveness to survive in a global economy- Growth/New Markets- Inventory Turnover- ROI CapitalCost Reductions / Increase Margins$Be sure to link your plan to business objectives.2/6/2011

14. 7A3 – Document Business CaseProject Name: Hose Line Productivity Improvement1. Increasing customer expectations and pressure require improvements in quality, delivery, and cost. 2. Need to improve cost competitiveness.Background / Business Case:2/6/2011

15. 8The LEAN JourneyBefore you can begin the journey you must “Grasp the Initial Condition”.IDEAL ConditionUnclear Journey100% Value Add

16. 0 Defects (Internal)

17. One Piece Continuous FlowHuman Development

18. Value to SocietyInitial ConditionHidden Waste (Problems)

19. Poor Equipment Efficiency

20. Poor Labor Efficiency

21. High Defect Rates

22. Large Batches

23. Infrequent improvement2/6/2011

24. 9Racetrack 1Hose Assy 1Butter-Fly 1Crimp 1Clench1Test, Inspect,Tape, Gauge,And Pack1CutterRacetrack 2Hose Assy 2Butter-Fly 2Crimp 2Clench2Racetrack 3HoseAssy 3Butter-Fly 3Crimp 3x 3 x 3 x 3 x 1 x 2 x 1= 54 different possible paths through production MascoRawWIPARawBRanso-hofffCBushingPressGantryLoadGrasp the Initial ConditionWalk / Observe the Value Stream(s) from shipping to receiving.Map the Process- Value Stream Map- Flow Chart- Spaghetti Diagram- Bubble Diagram- Work FlowKey Process IndicatorsProblems / OpportunitiesBarriersBarriers:Supplier Quality System