The Genie in the Bottle Implementing and Sustaining Lean Pg 1
What We’ll Cover Introduction 1. The Definition of “True North” 2. Key Philosophies Successful Lean Organizations 3. Quick review of the Toyota House 4. Discussion Activity on Why has Toyota been so successful, 5. and what went wrong with Toyota’s Quality? Why Organizations fail in Lean Implementation 6. The Four Capabilities 7. Avoiding the 8 th Waste Through Building Trust 8. Additional Tips for Sustaining your Journey 9. Pg 2
What is “True North”? (1) ON DEMAND, IMMEDIATE - Pull - 0 Lead Time (2) 1 BY 1 - Batch Size of 1 - 0 Changeover Time (3) DEFECT FREE (4) NO WASTE, LOWEST COST 1. Over production 2. Inventory 3. Defects, rework 4. Motion (Non value added) 5. Waiting 6. Conveyance, material handling 7. Processing 8. Under Utilization of People (5) SAFE - Physical - Professional (job stability, security) - Emotional (fear, threats) Pg 3
Key Philosophies 1. The Customer always comes first (internal and external) 2. People truly are the most valuable resource 3. Kaizen (Continuous Improvement) is a way of life, not an event 4. Focus on the shop floor Pg 4
Quick Review- The Toyota House Pg 5
Quick Discussion… • Why has Toyota been so successful in its application of TPS? • Despite Toyota’s willingness to share its practices, why do so many companies fail at Lean/TPS? • Is there some secret to the Toyota Production System that Toyota hasn’t shared with others? • Is their success due to cultural differences between Japanese and others? • What caused Toyota’s Quality problems in recent years? Pg 6
Reasons for Toyota’s Struggle with Quality • Rapid expansion in the 1980’s and 1990’s • Technological advances in how Cars and Trucks are built. Pg 7
The Fallen House… If you Google the Term “Muda” you will get 51,400,000 hits. l While at the same time, if you Google the term “Jidoka” you only get 130,000 hits! Just In Time: -Flow -Takt Time -Pull System Leveling Standardized Work Kaizen Pg 8
Why Organizations fail…? -Copy lean tools only without making the work self diagnostic and without embracing the Human side of the Lean Journey -Working around problems even when they are recognized -Failure to share knowledge gained throughout the Organization -Lack of training and mentorship to enable their Teams to design work, improve work, and implement changes based on new knowledge Pg 9
Reasons for Toyota’s Success • Toyota has developed a culture where how work is performed is tightly coupled with how that work is improved toward True North . • Additionally, four main capabilities exist in Toyota that have allowed them to make steady improvements over time leading to their superior performance…. Pg 10
The Four Capabilities of the Operationally Outstanding. Pg 11
Background 1990- The Book “The Machine that Changed the World” is published. Based on MIT’s 5 year, 14 country study of the Auto industry, it was the first book to examine Toyota’s Production System. In 1999 Steven J. Spear and H. Kent Bowen wrote a Harvard Business Review Paper Titled: “Decoding the DNA of the Toyota Production System.” This paper outlined the “Four Rules” that Toyota used as the bedrock of its production systems, and explained how these rules are ingrained into every aspect of their organization. “The Capabilities of the Operationally Outstanding” Are 4 key competencies that Spear recognized as being deeply imbedded in Toyota’s culture. These competencies are also present in other Organizations that are successful in their Lean journey. Pg 12
The Four Rules • All work is highly specified as to content, sequence, timing, and outcome. • Every customer/supplier connection must be direct, and there must be a crystal clear way to send requests and receive responses. • The pathway for every product and service must be specified, simple, and direct. • Any improvement must be made in accordance with a scientific method, under guidance of a teacher, at the lowest possible level within the organization. Pg 13
Characteristics of a Lean Organization • All work is designed so best practices are captured and problems are evident immediately. • Problems are immediately addressed, both to contain them, and to trigger problem solving activities. • Knowledge generated locally becomes systemic through shared problem solving. • The most senior management has to own the capability development process. Pg 14
PRESPECIFICATION AND EMBEDDED TESTS Making the work self diagnostic Pg 15
VIBRATION WHEN GOING OFF THE ROAD Prespecification Embedded Test Pg 16
ROTTEN EGG SMELL OF NATURAL GAS Prespecification - No Leaks Embedded Test Pg 17
VISUAL & AUDIBLE LOW ON FUEL Prespecification Embedded Test Pg 18
VISUAL SPEED MONITORING Prespecification Embedded Test Pg 19
VISUAL COLOR CHANGE WITH TEMPERATURE Prespecification - Too hot for Baby! Embedded Test Pg 20
AUDIBLE WARNING VEHICLE HEIGHT Prespecification Embedded Test Pg 21
PROCESS DESIGN The Four Levels (SYSTEMS, PATHWAYS, CONNECTIONS, ACTIVITIES) Pg 22
System – Output “Pre - Specification” Pg 23
System – Output “Embedded Tests” Ex. 1 – Electronic PC Board Ex. 2 – Manual PC Board Actual output can be color Actual output can be color coded coded as based upon a as based upon a deviation from deviation from the target. the target. T/L would observe the Sounds or the visual can alert results x-times per shift for T/L’s of abnormality. abnormalities. Pg 24
Pathway – Responsibility “Pre - Specification” Ex. 1 - Production Process Ex. 2 - Quality Process Pg 25
Pathway – Responsibility “Embedded Tests” Ex. 2 – Sequence (Order) Ex. 1 – Who (Responsibility) Pg 26
Connection – Handoff “Pre - Specification” Ex. 2 - Kanban Signal Ex. 1 - Light Signal Request for The customer (prod.) will material is turn light on when materials made by are needed. The supplier placing the (materials) will be clear that empty rack in a request has been made. the pre- specified location. The response is to fill the empty rack with the pre-specified quantity and return to location. Pg 27
Connection – Handoff “Embedded Tests” Ex. 1 – Lights / Sounds Ex. 2 – Footprints Note : Further escalation could occur where a team leader is notified of the abnormality via cell, beeper, or other means. Pg 28
Activity – Method “Pre - Specification” Example: STANDARDIZED WORK – Quality Inspection Pg 29
Activity – Method “Embedded Tests” Ex. 1 – Team Leader Ex. 2 – Sequence (Order) Pg 30
Quiz Time! Pg 31
ANDON CALL FOR PRODUCTION PROBLEMS CONNECTION Pg 32
SAFETY EXPECTATIONS FOR CELL SYSTEM Pg 33
PART TAGGED WITH INFORMATION FOR NEXT STATION CONNECTION Pg 34
DESIGNATION OF WHO IS RESPONSIBLE FOR WHAT ROLE PATHWAY Pg 35
STOCK MATERIAL ORDERING TAG CONNECTION Pg 36
OPERATOR TOOLING ORGANIZED FOR CHANGEOVER ACTIVITY Pg 37
MAINTENANCE PROCESS PERFORMANCE BOARD SYSTEM Pg 38
TAG USED TO ORDER REPLACEMENT MATERIAL CONNECTION Pg 39
OPERATOR CLEANING MATERIALS ORGANIZED ACTIVITY Pg 40
SHIPPING SCHEDULE CONNECTION Pg 41
SYSTEM OUTPUT BOARD WITH RESPONSIBILITIES SHOWN PATHWAY Pg 42
LOCATION DESIGNATION FOR MATERIAL CART 1.Activity 2.Connection Pg 43
STANDARD WORK CHART ACTIVITY Pg 44
PRODUCTION PROCESS PERFORMANCE BOARD SYSTEM Pg 45
COMMUNICATION OF NEXT PRODUCTION JOB CONNECTION Pg 46
OPERATOR COLOR CODED CHANGEOVER TOOLING ACTIVITY Pg 47
PRODUCTION PROCESS PERFORMANCE BOARD SYSTEM Pg 48
SIGNAL THAT CHANGEOVER HAS STARTED CONNECTION Pg 49
1. MODIFICATION OF WORK FOR Operator # 3 & # 4 2. REBALANCE OF WORK BETWEEN OPERATERS 1. ACTIVITY 2. PATHWAY Pg 50
OPERATOR TOOLS ORGANIZED FOR CHANGEOVER ACTIVITY Pg 51
Why is it Important to Categorize the Four Levels? Pg 52
Problem Solving Pg 53
Prevention vs. Detection Which is better? Preventing a heart attack? or Have a heart attack and seek treatment afterwards? Pg 54
Detection vs Prevention Pg 55
Common Roadblocks to Problem Solving Common Roadblocks l Problem not well defined l Problem solving effort is untimely l Poor team dynamics l Participants – lack of understanding of problem solving and problem solving l techniques Inadequate resources allocated – not enough time l Root cause not identified l Management support l Pg 56
Key Element Number 1- “Go and See” When a problem surfaces, go to the actual workplace and see • for yourself what is happening. -The Actual Product -The Actual Process -The Actual Place -The Actual Person -In a Timely Manner (rapid response) Treat the process or area where the problem is occurring as a • crime scene. (Just like CSI) Pg 57
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