Transcript Operational Excellence - Capital District Transportation

Survey of
Tactical Methods
XONITEK Consulting Group Int’l
Friday, August 13, 2010
Kaizen
What Is Kaizen?

Kaizen is the fundamental framework within with Leanstyle process improvement happens.

It is a collaborative, team-centric method for analyzing
and reducing the waste within a particular area of the
business.
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Types of Kaizens

Target Kaizen

A focused event using a specific Lean tool
 Formal Value Stream Map (VSM) created during or immediately before
event
 Focused on a specific improvement area within the whole environment

Impact Kaizen (“Blitz”)
An approach to identify “low hanging fruit” in waste reduction.
Often done in lieu of a VSM – roughly overviews entire process area or
facility and interfacing groups.
 Fluid, fast moving framework to capture easy process gains – designed
to collect data in an informal fashion.


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Process Steps
of a Target Kaizen
Kaizen - new - no red.igx
How to
Define a
Target
Kaizen
Project
Process
Analysis
Improvement
Implementation
Standardization
Project Scope Document

The initiation of the Target Kaizen should be
presented in a (semi-)formal proposal

The “Project Scope Document” is one such
format to initiate this process
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Project Scope Document sample
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Reviewing the Process with the Team

Start with a rough walk through of current state of the
selected process area

First, describe the process in words

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Commonly used name
List inputs
List outputs
Give one sentence description of general activity performed
Show “setup time”, “cycle time”, “takt time”
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Key Definitions to Understand

Setup Time
 Duration of time between the output of the last good item from the
previous job to the first good piece of this job
 Example: Clock starts when last bottle of flavor A water hits the
crate and stops when the first verified good bottle of flavor B hits the
next crate

Cycle Time
 How often a unit of output leaves this process.
 Example: if one filled bottle of water appears at the output end of
the process every 30 seconds, then cycle time = 30 seconds.

Takt Time
 How often a unit of output must leave the process to keep up with
customer demand.
 Example: if there are orders for 240 bottles of water per hour, takt
time = 15 seconds.
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Take a Walk
Take the team to observe operation of the
process:
 Record
the steps involved in the process using the
Flow Process Form – at a rough level
 Note
cycle time estimates of each step
 Categorize
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the wastes observed
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Document the Findings

When complete, formalize the observation:

Account for any potential variances in the process.

Are there typically differences due to:

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Operator?
Shift?
Tools?
Travel Distances – methods analysis.

Is there prep work for this process that may change how it operates?

Review the Process Inputs for opportunity.

Are there any factors in downstream processes that may impact the way
this area performs?
Goal: A process description of the typical execution of the process
backbone or any specific variant process steps that may exist.
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Formalize the Map

Finally, verify the observation…

Bring each element of the process description to the team.

Verify its accuracy and realism.

Resolve any discrepancies now.
Do not shortchange this process!
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Scope Validation

Verify the details of the Project Scope document:

Is the Mission of the project realistic?

Are the CAN/MUST DO’s and the MUST NOT DO’s
reasonable?

Are the goals attainable, in a general sense?
If there are any concerns, stop now and review with project
sponsor!
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Scope Refinement

Validate that the goals are specific:

Each goal should have a quantifiable target.


For example: “Reduce cycle time by 50%”
Use the wastes identified in the walk through to perform rough
calculations.

Will the specific goals meet the required ROI of the
Project Plan?

Consider reviewing the revised goals with the project
sponsor to ensure continued support.
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Visiting the Site

The Team has Decided to Go Forward…

Prepare for the team’s visit:
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
Select an operator whose activities will be “typical”.
Ensure entire team is available, without interruption, for length of
observation.
Assign roles (examples next slide) to each team member based
on the pre meeting discussions.
Goal: Record solid data from a typical performance of
the process.
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Role Assignments…

Assign roles based on talents:

Process observation coordinator

Machine observer

Stopwatch operator

Distance measurer

Photographer

Layout/Travel observer

Documentation coordinator
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Role Descriptions

Process Observation Coordinator
 Primary
goal: Record the steps in the process, along
with data from other observers (Flow Process Map)

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Note when each step in the process starts.
Note a short description of the step from the perspective of
the operator (“waits for data display”, “inspects diameter of
cut”).
When a step ends, obtain and record time and distance
measurements.
Note where machine observations belong in the flow.
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Flow Process Map
This chart allows you to map
the activities in a process very
specifically.
Draw connecting lines or “X”
out the activity of each step.
Tally the number of each
symbol and time at each step
to overview the process.
Distance and time should be
common units of measure… a
good choice is feet and
minutes.
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Role Descriptions

Machine Observer
 Primary goal: Record the steps in machine operations
 Similar to process observation role.
 Observe and record when machine begins distinct steps in its
processing.
 Obtain and record time measurements as each step begins.
 Make notes of the magnitude and nature of significant
movements within machine at each step.
 Use same stopwatch as process observer!
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Role Descriptions

Stopwatch Operator
 Primary
goal: Provide time measurements as
prompted by observation coordinator/machine
observer



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In preparation, learn the function of all controls on stopwatch.
Start stopwatch at beginning of first step and leave running.
Listen carefully to observation coordinator and machine
observer calls of “next step”.
Provide time on stopwatch at that moment.
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Role Descriptions

Distance Measurer
 Primary
goal: Measure the physical distances
walked/moved by operator



Use a distance wheel and walk the same paths the operator
walks, without interfering.
Note the nature of any smaller motions in each process step
(“three wrist turns”, “one waist twist”).
Provide measurements to observation coordinator when
prompted.
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Role Descriptions

Photographer

Primary goal: Create a visual record of the process and the
Kaizen blitz event
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In advance of the event, take pictures of all areas, machines, and
equipment involved in the process.
During the event, take pictures of the operator at each step as the
process unfolds.
Use angles/locations that provide useful identification/illustration of
the steps in the process.
Note any safety hazards observed, along with time they were
observed.
Photograph all inventory areas.
Take a few pictures of the Kaizen team during the event.
After the event, take pictures of the final layout/process operation.
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Role Descriptions

Layout/Travel Observer
 Primary
goals: Illustrate the work area layout;
document travel and transport of the process.
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In preparation for the event, draw work area layouts for all
areas involved in this process.
If possible, fit everything on one sheet.
During the event, use “spaghetti diagram” techniques to draw
movements on the layouts.
Consider using fresh layout copies for every 10-15 activities.
Take measurements of inventory found within the work area.
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Role Descriptions

Documentation Coordinator
 Primary
goal: Collect and assemble the
documentation related to the process.
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Assemble all input and output documentation to the process.
Note when in the process each is received/created.
After event, collect copies of any documents the operator
used for guidance before/during operation.
Create detailed lists of equipment and tools in the work area.
Describe all inspection points in the process.
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Role Descriptions

You can add or modify these roles as
appropriate

Additional roles should be discussed and added
as necessary
 Likewise
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with the elimination of roles
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Waste Analysis

Collect the observational paperwork created during the event.

For each step observed, categorize as a particular waste or value
add.

Sum the durations in each category.
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Make other calculations (see next slide).

Re-evaluate the goals of the event (discussed in later slides).
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Waste Analysis

Additional information to compute from observations

Sum the distances traveled.

Sum the categories of motion observed.

Sum the safety hazards observed.

Calculate the space utilization in the work areas of the process.

Obtain (or estimate) scrap and rework rates for the process.

Validate inventory measurements taken.
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Waste Analysis

Build a (semi-)formal Value Stream Map (VSM)

Re-evaluate the goals of the event

Are they achievable, based on the wastes observed?
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If not, discuss with project sponsor.

Make any updates necessary and agreed upon by the team and
the sponsor.

Move on to making improvement recommendations.
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6-week forecast
Steel
Supplier
90/60/30 day
Forecast
Production
Control
Weekly Fax
Daily Order
150sets/day
500 ft coils
Customer
Daily
I
Coils
5 days
supply
Stamping
1
I
4600L
2400R
Weld 1
2
I
1100L
600R
Assem. 1
1
I
1200L
640R
Shipping
1
C/O = 60 min
C/O = 10 min
C/O = 30 min
C/O = 0 min
C/T = 1 min.
C/T = 3 min.
C/T = 5 min.
C/T = 8 min.
Util. = 85 %
Util. = 77 %
Util. = 93 %
Util. = 88 %
Scrap 1 %
Scrap 3 %
Scrap 3 %
Scrap 0 %
417 min. avail.
EPE = 2weeks
450 min. avail.
460 min. avail.
EPE = 2weeks
1 minute
10.3 days
3 minute
8.2 days
EPE = 2weeks
5 minute
12.1 days
460 min. avail.
NVA = 35.7 days
EPE = Day
8 minute
VA = 17 min.
Improvement Development

Identify the bottleneck in the process
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How can we improve the bottleneck?
 Which points will then be the next one or two bottlenecks?
 How can those be improved?
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Which Lean tools are best to tackle the bottleneck’s waste?

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Is it a setup issue? (QCO)
Search/motion? (5S)
Inventory? (Kanban)
Based on the proposed changes, build a Future State Value Stream
Map now
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Plan the Changes

Discuss each phase of the change and what resources are required
and when…

Mechanical – moving or modifying equipment, connecting machines.

Electrical – redistribution of power, conduits.

Tooling – retool, procurement of tools, creation of new tools, spares.

Additional Training – is the operator qualified to work in an expanded
cell structure, revised machine parameters may necessitate additional
instructions.

Specialized Resources – outside contractors for specialized needs.
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Develop a Timeline

Start with a schedule of activities by sequence…

Review and optimize the activities to be most productive.
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Put timing around “groups” of actions to maintain flexibility.

Confer with all impacted departments to minimize disruptions and
possibly enable them to modify some operational plans to sustain
customer service.

Review all plans with the Kaizen team involved to assure no
misses…
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Announce the Changes

Formally announce to the impacted area.

Post in public places to inform employees with
action dates.

Electronic postings to support personnel may be
appropriate as well…

You can never have TOO much communication.
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Make the Changes

Get it done.

Don’t be afraid to step back into previous steps
in the Kaizen as new information is available.

Adjust. Repeatedly, if necessary. It’s ok.
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Create the “Leave Behind”

Use “Leave Behind Template”
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Quantify the benefits measured



“Cycle Time Reduced 50% from 1:30:50 to 0:45:25”
“Set-up Time Reduced 80% from 100 seconds to 20 seconds”
Etc.

List each improvement action implemented

Use this form as a template to measure continued use of
the improvements implemented
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Create the “Leave Behind”

Clearly document hard benefits attained

Calculate time savings attained on an annual basis

Multiply by the appropriate labor rate to get a dollar amount

Remember: It’s only a hard benefit if there is something
productive for freed labor to do!

If there is machine time saved, use the appropriate charge rate
to calculate the annual benefit, but only if the extra time can be
productively used immediately!
Remember: Hard benefits are realized by the time the event is
finished; soft benefits require some additional action to accomplish!
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Create the “Leave Behind”

Document other hard benefits

Calculate annual dollar value cost of space freed, but only if it can
immediately be productively used for something else or sold / unleased!

If there is an immediate sales gain due to orders that can now be
fulfilled from extra capacity, that revenue is also a hard benefit

If there is an immediate reduction in inventory, the annual carry cost can
be counted as a hard benefit

If there is a reduction in material used, including reduction in scrap, the
annual cost of material saved can be counted as a hard benefit

The liquidation value of any equipment sold during the event can be
counted as a hard benefit
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Example: Hard Benefits Chart
Category
Amount
Reduced
Improvement
$
%
Labor Savings due to Cycle Time
Reduction
01:30:00
$25,000 30%
Floor Space reassigned to
Production Line X
2500 sqft
$40,000 50%
Surplus Hardware sold to
Customer Q
5
wrenches
$500
--
Etc.
…
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Create the “Leave Behind”

Create an action plan for “soft” benefits identified



List each action that must be taken to convert all identified soft
benefits to hard benefits
Assign a resource to each
Identify a due date for reporting back to the team
Action
Assigned To
Due Date
Implement on water production line B $50,000
Tim Comfort
31-Mar-2011
Cross-train operators on prod. line Q
$30,000
Ed Giles
31-Jan-2011
Sell extra clamp set
$5,000
Amit Pujara
31-Dec-2010
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Payback
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Create the “Leave Behind”

List ideas for additional improvement opportunities

Use the additional improvement ideas generated during the
event that were not chosen

List no more than three

Consider those rejected on basis of time/resource constraints,
but not those with low payback

Assign each to a particular resource, with a due date!
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Closing Events

Make sure the team is publicly recognized!

Make sure all outstanding improvement implementation is
completed.

Make sure there is a plan to convert the soft benefits !!!

Schedule periodic (monthly?) reviews to ensure changes are still
utilized every time process operates.

Schedule follow-up kaizen events (twice a year?) to repeat the
cycle!
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Update Standard Work Procedures

Using the appropriate company format update the new
work procedures that are validated by the Kaizen Team.


Update the standard work document for the process
Train all affected employees in the new procedures

Expect that you will need a few cycles to observe before
this finalization can be done.

Always involve the front line employees…
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Kaizen
*** Questions and Discussion ***
5-S
Quick Changeover
AKA: Single Minute / Moment Exchange of Dies (SMED)
The Effect of QCO
Elapsed Time 3 hrs or 180 minutes
Set Up 60 min.
Produce Parts 120 pcs.
• Change Over of 1 hour is 30 sec/pc
• SKU lot size produced to absorb SU costs = 1 SKU
Elapsed Time 3 hrs or 180 minutes
• Change Over is reduced to 10 minutes and kept at 30 sec/pc
• SKU can be changed to 20 pc lots = 6 SKU’s in same time frame
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Something to consider…

In an 8 hour shift:
 Old scenario –
 2 SKU’s and part of a third.
 Downstream processes waiting
 Inventory increased.
 New Scenario –
 16 SKU’s produced
 More downstream processes supported
 Less, if anything, put into inventory.
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External vs. Internal

External Activities

Happen outside of the physical machine
 Do NOT require the machine to be stopped to be performed
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Finding tools
Finding dyes
Retrieving anything needed to start the production run
Locating employees to help with set up
Moving inventory out of the way
Internal Activities

Actions that require the machine to be stopped


Inserting a dye into the machine
Locking it in place
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Internal and External…

External Activities:

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Tools – Hand tools or machine tools necessary to perform the next job.
Fixtures – Jigs, templates or dies used to make a specific SKU.
Parts – Materials necessary to produce the job, usually from a
stockroom.
Material Handling – Hoists, booms or other devices used to move the
previous job or the current job.
Completed Jobs – Parts from orders done that are now moved to the
next operation.
Instructions – Includes setup check lists and job work parameters.
Internal Activities:

Changeover - Placement of tools into the machine or workstation done
while the machine is NOT running.
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The Process
A.
B.
C.
D.
Observe and record the process as it currently exists
Pull all External activities to the beginning
Convert Internal activities into External activities
Conduct activities in parallel
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The Observation Techniques

Based on the actual duration of the changeover:
2 hours… first hand observations with a
stopwatch.
<

First hand observations are best done with one person timing
key activities and the other making any required notes...
>
2 hours use a video camera with a visible timer to
record and later review the activities.
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Pareto the Activities

Resolve “isolated” incidences

Don’t waste time on incidences that rarely occur… establish the operator’s
responsibility to avoid or minimize…



Authority not to do…
Notification of Line Leadership for resolution…
Identify true waste factors – Non Value Add
Standardization of the hardware… the length is waste… only the last quarter
turn tightens the bolt…
 Quick Clamps to replace manual tie downs…
 Suspended Tools, pneumatic or electric to improve cycle time.
 Pre Condition the dies…


Establish Go Forward Momentum…

Define Lean tools to facilitate the QCO.
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Examples of Quick Change Hold
Downs...
Quick Turn Clamps
replacing screws…
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Put Change Over into Perspective…

Question…
 How
can a pit crew change tires, fill the vehicle with
fuel, and inform the driver in less than 30 seconds?
 What
changes in your business could be facilitated by
such a dramatic improvement?
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Quick Change Over
*** Questions and Discussion ***
Assorted Topics in Lean
Standard Work



Every process should have a standard procedure with
expected durations
Without Standard Work, improvement implementation
will not “stick”
Development of Standard Work is the most important
(and most often overlooked) element of 5S
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Poka Yoke

“Mistake Proofing”

Reduce the incidence of defects by ensuring a process MUST be
completed correctly, by design

Warning poke yoke – an alert that something is about to go wrong
Control poke yoke – it is physically impossible to make a mistake

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Poka Yoke

Contact Method

A physical attribute prevents the defect


Fixed-value Method


“Keyed” cabling, polarized plugs, uniquely shaped slots
An alert to the operator that a number of movements have not been made
Motion-step Method

An alert that a particular sequence has not been followed
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Visual Management

As much as possible, integrate visual
workplace tools in process improvement
activities

An observer should be able to determine, at
a glance, what the current state of the
process environment is

Examples:

Red/Yellow/Green status lights
 5S style floor outlines
 Work scheduling board
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Assorted Topics in Lean
*** Questions and Discussion ***