Competing in the Marketplace pptx

Kaizen TrainingTIME: 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 valuabl

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Competing in the Marketplace

“What factors are important to the customer?”

John Deere - Supplier Development

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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

Shrinking Lead Times

Order Lead Times Manufacturing Lead Times Delivery Lead Times

Manufacturing Lead Times

Order 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`

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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) 99% of Total Lead time

Value Added Time (VA)

1%

Improvement Efforts Concentrated on reducing VA time, with no attention given to NVA

Non-Value Added Time (NVA) 99% of Total Lead time

VA 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

Common

Where’s the Time in Lead Time

NVA Time

95% of Total Lead time

VA 5%

When we look at attacking the NVA Activities in the Timeline and compare that to the original timeline:

Non-Value Added Time (NVA)

99% of Total Lead time

Value Added Time (VA)

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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?”

Some examples NVA Activities:

machine cycle

Transporting parts

Generating useless reports

THE GOAL IS TO ELIMINATE THE

NON-VALUE ADDED ACTIVITIES.

Unnecessary motion

Unnecessary stock on hand

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.

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!!!

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Steps on Team Development

Forming This is the development of a multi-functional

team with a variation of backgrounds and knowledge

Norming Stage where the group agrees how to

operate as a team

Storming Open & honest discussion, also brainstorming

Performing Agreement on solutions & taking action

Adjourning Closing on the continuos improvement process

after 30 days

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

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TAKT Time Calculation

Production Time Available / Period

Number of Required Units / Period TAKT

Production Time Available / Period (one shift):

Breaks - 2 @ 10 minutes

Shift Time ( 8 hrs )

Clean-up at end of shift

Production Time Available:

- 20 mins

480 mins

- 5 mins

455 mins

Units Required / Period (one shift):

10,500 Units Sold Monthly

21 Working shifts / month

27,300 secs

or

500 Required units / shift

TAKT Time: 27,300 secs / shift 500 units / shift 54.6 secs.

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

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Meaning of the 5S’s

Sort Straighten

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!

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

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Do MORE with LESS

Staffing Productivity

SHIFT MINDSET

CURRENT

WASTE NOT DEFINED

REACT TO LARGE EXAMPLES

REACTIVE IMPROVEMENT

WASTE IS "TANGIBLE”

IDENTIFY MANY SMALL OPPORTUNITIES -LEADS TO LARGE OVERALL CHAGE CONTINUOUS IMPROVEMENT

WASTE

Correction Processing

Motion Waiting

Inventory

Transportation

Over- Production

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

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

Im pro ve Problem Solve

Standardize

• Process requires ongoing inspection and enforcement to

ensure “Standardized Work” is being followed

• Process does not improve automatically

- Following standards will only maintain, not improve, the

process.

- Improvement focuses on the entire process.