Professional Documents
Culture Documents
Mr.David Huges, MD
•Our Vision:
•The supplier to the foundry industry providing greatest
value
•A highly respected company with which all
stakeholders are proud to be associated with
•Business Strategy:
•Key Strategic Objectives
•Good to great
•KAIZEN Pillars of success
•Supply Chain Efficiency
•Lean Organization
•High Performance Orientation
•Quality Systems
•Process Orientation
Foseco
Mr.David Huges, MD
KAIZEN is in line with our Values
•Team working
•Continuous Improvement
•SHE
•Empowerment
•High Performance
•Employee Focus
•Lead by Example
= ZEN = GOOD
(FOR THE BETTER)
= KAIZEN =
CONTINUAL IMPROVEMENT
Time
Who should do KAIZEN®
Your Job is: Improvement of
Standards
Set & Sustain Standards
Managers have more scope to d
TOP Investment KAIZEN; not workers!
MANAGEMENT
MIDDLE E N
IZ
KA
MANAGEMENT
SUPERVISORS
Sustenance
(Routine Work)
WORKERS
AUTONOMOUS
MAINTENANCE, 5-S &
Visual Management
When there is a problem, what do we do?
What we do is:
Implementation
(PDCA)
Problem Solving Approaches
Suggested in Books
Basis Traditional Optimal
Problem Grand Deployed Deployed
Definition composite (Broken down) (Broken down) &
One at a time
Method of Opinion of Secondary data Primary always
Data Expert & Secondary as
Collection required
Method of Forward thinking Rigorous Statistical Crude Statistical
(from cause to (segregation of
Data effect) effects first) & Backward
Analysis thinking
Attack technical Attack muda (non Attack muda (non value
Paradigm adding area); then mura &
area (value adding value adding area) muri
area) first first
11 Electricity
4 Internal Transfer
18 Other Materials
4 Packing Fee
27 Depeciation
2300 Total Supply Chain Cost
243 Production Expenses o
KAIZEN Approach
Deploying the Problem
Defining the Problem
Black Spots
Thin In terms of
Others Spots leading to
Accepted rejection
product
Most
serious
1%=Rs50la
kh
ULMA NT
Holes
Rejection ($100,000)
36% 50%
pa
Rs18 crore
($3.75million)
per annum
Drawn to scale
Corporate Strategy:
Doubling sales in Singapore
Eliminate purchase
of new equipment
–
save USD 6 million
Loss Loss
Loss Loss
70% 70%
55% 55%
OEE OEE
KAIZEN OEE OEE
30% 30%
45% 45%
12/08/100
Loss Tree
(Finding Waste)
SpeedShort
Loss Stops
Quality
Loss
Typical OEE is
30~50%
ailability Rate = Available Time / Calendar Time
formance Rate = Operating Time / Available Time
ity Rate = Quality Output / Output during operating time
Loss Availability
70% Loss
OEE Target 45%
61%
Performance Loss
OEE
35%
30%
4% Quality Loss
12/08/100 Jan- Jun 2
All Problems are universally defined as:
Gap between Expected and Actual Results.
Problem is always defined in terms of results; never in terms of causes.
Expected Result could be the Target Result.
Event chain
Expected Result
Problem
New
E vent Actual Result
Root Cause C hain
Go to gemba and
have a good look.
Look for muda, mura,
muri
muda
muda
Kaizen
Philosophy
Attack first
muda
REG. MATERIAL &
TRANSPORT MANAGER
11 10
12 13
ELECTRICAL
STORE KEEPER CONTRACTOR
9 14
DISTRICT 6 DISTRICT TECHNICAL
MANAGER OFFICER
7 8 REGIONAL
5
ENGINEER
CUSTOMER PREMISES
3 4
CUSTOMER PREMISES
Setting Up Customer Account
Data
New Block BPO
Capture
8
3
7
ctions after KAIZEN: DM 6
TO receives info from field. Old Block 5
TO fills data into CS 111 form.
1
TO fills meter no., CS111 no. etc., in register 2 DTO
TO takes form to DM
M verifies and approves by signing
4321
TO picks up signed form from DM
TO sends form to data supervisor
ata supervisor cross checks serial numbers and signs in courier book
ata supervisor allots it to data capture assistant
ata capture assistant enters data into system. Estimator
Result of 3 Processes:
ation for new service, connecting it, and setting up for
30 steps
Obvious muda
(wasteful
activities)
removed
15 steps
How much
money saved?
Sample calculation
done for
one process
Achieved So Far: (This is DONE; it is not a mere recommendation)
Savings: $$$,$$$/year for one KAIZEN project
“Setting Up New Customer Account”
Calculation of savings (forfeited revenue recoverable per annum):
• Avg time for setting up of new account is 3 to 4 months before KAIZEN
• Avg time expected is 1 to 2 months after KAIZEN (depends on billing cycle)
• Avg saving in set up time: 2 months
• Avg billing of customer in a month: 100,000 cedi
• Avg no. of new customers/day (Kumasi alone): 30
• No. of days per year: 250
• Savings (forfeited revenue): 100,000 X 2 X 30 X 250 = 1,500,000,000 cedi
• For 4 regions (120 new connections/day): 6 billion cedi
• Assume 50% failure rate.
• Savings (forfeited revenue recovered):
3 billion cedi = USD 350,000/ year
with 50% failure rate and from one project alone.
(1USD=8,500 cedi)
CS 111
All Problems are universally defined as:
Gap between Expected and Actual Results.
Problem is always defined in terms of results; never in terms of causes.
Expected Result could be the Target Result.
Event chain
Expected Result
Problem
New
E vent Actual Result
Root Cause C hain
Identifying & Eliminating Mura
Material Machine
Designed for batch loading
High operation time
Breakdown
Not Available
Effect (Problem)
Not Trained
High Lead Time
Batch Production
Absent
Long Waiting (WIP)
M/C Utilization is the key measure
Man Method
Check Sheet
Leader : PAV
Member : PTP, KCK, RC, WLD, TU, NI, KP
95 97 99 100
80 90
100 100
75
70 81
65 71 80
60
55
จํานนปญหา(ชม)
เปอรเซ็นตสะสม
50 60
45 48
40
35 40
30 24
25
20
15 20
10
5
0 0
ีว
ตก
น
อย
ั ฉก
ยี ง
บั โค
ต
ลง้ ิ
มดี
ี
บั จ
บี
กู ก
เบย้
อ งแ
งเอ
ลอ่ ื
บั ใบ
พบ
น ร
คเค
วั พ
ปร
บั ล
หอ
ั วา
บั ท
ปร
หวั
บเปู
บั ห
าจบ
เบร
ปร
บั ส
ปร
ปบ
ไฟ
ปร
บั ข
ปร
ปร
ปญหาทีเกิ
่ด
Keep asking WHY WHY WHY WHY WHY, till you feel satisfied at having
arrived at the root cause.
Cause-Effect
Correlations
Taxonomy
Mura Case Studies
To be
Deploying KAIZEN Projects done
Called
Teian through
Hidden Individual
Waste Suggestion Small savings Suggestio
Kaizen
Tonsbe
Small Group done
Moderate Savings
Activity
by
Kaizen
Small
Group
Activit
Known To
y be
WasteGEMBAKAIZEN done
Workshop Big Savings by
Manage
ment
Improvement v/s Focused
Improvement
Improvement Focused Improvement
Paper burns
GEMBAKAIZEN
Workshop
approach
The GEMBAKAIZEN Workshop
CHECK
&
PLAN DO
ACTIO
N
Pre Day 1 Day 2 Day 3 Day 4 Day 5 Post
workshop workshop
day day
ACTION
1. Annual Targets
2. Loss Tree 3. JIT/Lean
P
Compute VAR
time
(Value Added Ratio)
Brilliant
Sugges
Identify
Kaizen Non Value Adding
tion
Mgt (Teian) neede Activities
Kaize d
n
Do Process Observation:
•Identify the process to be improved
•Walk through the process
•Identify muda
•Go to Gemba
•Have a good look (observe carefully)
•Take countermeasure on the spot
•Diagnose root cause
•Standardize to prevent recurrence
What is a Process?
• A process has something flowing through it.
• To that something, value is added at some stages.
• There is a definite starting point, where that
something enters the process, and there is a definite
ending point, where that something exits from the
process.
• That something has activities done to it. Some are
value adding and some are muda.
Now it needs 2 minutes only !
Remove Connect
isolated the
islands operations Worl
d
Before KAIZEN After KAIZEN class
Stitching possi
m/c ble
Cutting Cutting
m/c m/c
Stitching m/cs
muda
Muda - how to see it?
• What should flow
– Material in a factory
– guest in a hotel
– document in an office
• Is it stopping? Muda!
• Is it retracking?Muda!
• Is it piling up? Muda!
Muda = “Waste”
• Reprocessing? Muda!
with a special meaning
7 - Muda List
1. Muda of over-production
2. Muda of waiting
3. Muda of repair/rejects
4. Muda of transport
5. Muda of inventory
6. Muda of motion
7. Muda of processing
Sustenance thru
S, Autonomous Maintenance, Visual Manageme
QFD
Smell good
till end
Soft, not
slushy
Dissolve fast in
water
• How to show higher value addition
• How to stop losing business to competitor
• No product differentiation
• Fear of losing business
• Cavities in Kalpur
• Higher DSO 120 days
• JDE not friendly
• Why frequent price rise
• Customers having O/S for more than 365 days
• Poor prediction/correlation between lab and shopfloor results
• Test certificate problem
• How to improve logistics
• No new innovation
• Poor obsolescence
• Low hit rate for projects
• Poor customer process knowledge
• How to eliminate general ledger and kardex differences
• Better cash forecasting to avoid idle cash
• Crashing annual closing deadlines without annual stress
• How to ensure the farden is maintained with lesser water consumption