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LEADING KAIZEN EVENTS

LEADING KAIZEN EVENTS. HOUSEKEEPING. Fire Alarms Exits Bathrooms Lunch & Breaks Cell Phones Meeting Norms. INTRODUCTIONS. Name Division ACE and continuous improvement experience Class expectations. At the end of this course, you will be able to effectively:

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LEADING KAIZEN EVENTS

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  1. LEADING KAIZEN EVENTS

  2. HOUSEKEEPING • Fire Alarms • Exits • Bathrooms • Lunch & Breaks • Cell Phones • Meeting Norms

  3. INTRODUCTIONS • Name • Division • ACE and continuous improvement experience • Class expectations

  4. At the end of this course, you will be able to effectively: Identify the different types of kaizen events Identify why and when to use kaizen List the process flow for running a kaizen event Identify the key inputs/outputs for each event step Identify required kaizen standard work elements COURSE OBJECTIVES

  5. AGENDA • Introduction to kaizen • Kaizen event steps 4

  6. “Kai” = Take apart and make new (change) “Zen” = Think, make good the actions of others, do good deeds and help others “Kaizen” = To take (processes) apart to understand them, then (and only then) put them back together to improve people's lives. Business philosophy of continuous, incremental improvement Rapid, team-based activity within a short time period Application of intelligence and ingenuity over spending money Focus on quick and simple results to eliminate waste KAIZEN DEFINED

  7. KAIZEN EVENT DEFINED A planned and structured effort that enables a team to improve some aspect of their business Kaizen is an intensive burst of process improvement

  8. D Defects / rework O Overproduction W Waiting N Non-utilization of people’s skills T Transportation I Inventory M E Motion Excess processing PURPOSE OF KAIZEN • Kaizen is the action element of lean philosophy Create a standard Eliminate waste “Where there is no standard, there can be no kaizen.” Eight Wastes TaiichiOhno VP, Toyota Motor Corporation 1912 - 1990

  9. TODAY'S ACE OPERATING SYSTEM • Equal emphasis on quality and flow Customers Employees Stakeholders Process Certification Shainin Red X methodology Lean transformation Logistics from the line back Perfect Products & Services Robust Lean Processes Tools Competency Culture

  10. Willingness to change Process vision ACE organization Workshop/project plan Training Methods/tools Customer Metrics Communication SUCCESS FACTORS FOR KAIZEN • Kaizen must exist within a total continuous improvement process Success factors

  11. Kaizen: Tests the will of management Teaches skills for problem solving Enables meeting your business targets Develops effective teaming in small groups Builds future leaders that will sustain the system Pushes consensus driven decision making downward Drives company attitude towards continuous improvement TOTAL KAIZEN PHILOSOPHY Strive to continuously optimize processes and products through the elimination of waste and the realization of the lean vision.

  12. WASTE ELIMINATION • Value-adding activities only account for a small proportion of the process Added value Work process • Activities that add tothe value of the product • Activities for which the customer is preparedto pay Obvious waste Added value Obvious waste (Non value-added and unnecessary) • Activities that are definitely not requiredto add value to the product Hidden waste • Work that does notadd to the product’s value but which may be required under certain circumstances Hidden waste (Not value-added but necessary) Has to be eliminated, e.g. scrap, rework, inventory, waiting time Can only be reduced e.g. changeover, transport time, movement time (without product) 11

  13. WASTE ELIMINATION • Critical questions have to be asked to identify non-value-add elements • How many of the tasks performed are essential for the process? • How many of the tasks only increase product cost instead of product value? • How many of the tasks have a genuine bearing on what customers need? Everything that does not add value is waste!

  14. WAITING EXCESS-PROCESSING DEFECTS OVERPRODUCTION WASTE ELIMINATION • Eight forms of waste in a process: DOWNTIME NON-USE OF SKILLS INVENTORY TRANSPORTATION MOVEMENT REQUIRED ON-HAND Which form of waste is most damaging?

  15. Problems Problems WASTE ELIMINATION • Inventory hides process inefficiency Inventory (WIP) Problems Problems become obvious Causes can be eliminated Problems are hidden Do business and engineering processes have inventory?

  16. EXAMPLES OF PROCESS WASTE

  17. CREATING A STANDARD Locks in changes Provides foundation for future improvements Captures knowledge Spaghetti Diagram

  18. AGENDA • Introduction to kaizen • Kaizen event steps • Strategic planning • Event planning & logistics • Event pre-work • Event week • Event follow-up 17

  19. KAIZEN EVENT PHASES Up to 30 days prior to kaizen 30-60 days after kaizen One to six months prior to kaizen • Needs analysis • Sponsor alignment • Draft charter • Finalized charter • Event checklists • Logistic plan • ACP event setup • Current state analysis • Team training • Finalized plan • Implemented improvements • Documented results (TPR) • Post-event plan • Out-brief • Kaizen event newspaper • Gantt charts • Final out-brief • ACP credit Timing and duration of pre-event tasks will depend upon the type of event

  20. KAIZEN EVENT PROCESS Deliverables Process Step • Perform a needs analysis to identify level • and type of kaizen activity • Meet with the senior leadership sponsor of the event Objective • The right kaizen type and level are selected • Business objectives and event resources are confirmed • Needs analysis • Sponsor alignment • Draft charter

  21. KAIZEN DEMAND "WE NEED A KAIZEN!" 20

  22. KAIZEN NEEDS ANALYSIS "Why are we having this event?" "Does this process have significant impact on our customer or business?" "Do we have a clear picture of the current state and the desired future state?" "Do we know what kind of kaizen is most appropriate?" "Do we understand the required scope of the event? 21

  23. BUSINESS CASE FOR KAIZEN Strategic objectives Process analysis Kaizen opportunities Roadmaps Metrics Cell Design Event Future state VSM TPM 22

  24. BUSINESS CASE FOR KAIZEN • Business and process metrics will align with kaizen needs analysis Lead-time Inventory Total product cost Quality Customer satisfaction Market growth

  25. DIFFERENT LEVELS OF KAIZEN • Kaizen can be applied at multiple levels within an organization Consider the business impact Business Impact • Value Stream / Enterprise • Site • Cell • Process • Work step

  26. Net Sales Profit after Taxes Operating Expenses Taxes Free Cash Flow minus Working Capital Change A/R Inventory A/P Invested Capital Buildings & Equipment Capital Expenditures LEAN IMPACT ON VALUE STREAM METRICS Decrease operating expenses Decrease inventory Increase profitability Increase free cash flow Decrease working capital Increase inventory turns Increase velocity Increase productivity Gain market share 25

  27. LEAN JOURNEY • At the beginning of the journey we reduce waste in the value stream with process kaizen and lean events 26

  28. LEAN JOURNEY: CELL LEVEL • At the cell level, lean improves business metrics exponentially 27

  29. LEAN JOURNEY: CELL LEVEL • At the cell level, lean improves business metrics exponentially 28

  30. LEAN JOURNEY: SITE LEVEL • The benefits of lean are compounded as cells are connected A site is a logical grouping of cells or work groups connected by processes Cell 1 Customer Site Cell 2 Cell 3 29

  31. LEAN JOURNEY: SITE LEVEL • The benefits of lean are compounded as cells are connected 30

  32. LEAN JOURNEY: ENTERPRISE • Optimize your value stream with an enterprise application of lean 31

  33. LEAN JOURNEY: ENTERPRISE • Optimize your value stream with an enterprise application of lean Eight Success Factors $ 32

  34. LEAN JOURNEY: ENGINEERING • There are unique kaizen events for design engineering 33

  35. KAIZEN NEEDS ANALYSIS • Events derive from business plans and/or future state VSM Future State VSM Cell Design Event DIVE

  36. EXERCISE: NEEDS ANALYSIS You have been selected by the general manager to lead a kaizen event to address delivery issues between two of his UTC ACE sites. You are given no additional information. The GM has set up a 30 minute meeting with you to discuss your plan. • Form teams of four-six people: • Based on the information provided, outline the kaizen type and level(s) and what ACE tools might be most appropriate for this problem. Use the matrix reviewed earlier as your guide. • What questions you would ask to better understand the scope of the event/activity? • As the event leader, what other questions do you need answered at this stage? • Post your information on a flipchart and share with the rest of the class.

  37. KAIZEN EVENT CHARTER • Begin documenting the plan early in the event process Problem statement Current state analysis Desired state Metrics alignment Event deliverables Schedule and plan Team membership Leader and sponsor

  38. PRE-WORK KAIZEN EVENT PROCESS Based on scope of preliminary objectives and availability of personnel and facilities. Initially from GMT. May be modified during pre-work if scope too large or too small. Local people + “Outside eyes” + Suppliers/customers + Informal leaders + Problem solvers The link to Policy Deployment /Macro Plan Part time support – Example: Facilities, EH&S, M&P, etc. List the real problems, not “solutions in disguise” Takt time for external customer value adding events. May be other measure for other types of events Key attributes of theprocess being improved

  39. THE IDEAL KAIZEN TEAM • Five to eight members recruited from cross-functional areas Process customer One employee per shift Process user Who is missing? KAIZEN Leader Sponsor Engineering/Quality Process supplier Other support

  40. DISCUSSION: KAIZEN SPONSOR What is the sponsor's role in kaizen planning? Process customer One employee per shift Process user ____________________________________________________________________________________________________________________________________________________________________________________ Sponsor KAIZEN Leader Engineering/Quality Process supplier Other support

  41. STRATEGIC PLANNING • Align kaizen level, type and expected results with sponsor Quality Customer satisfaction Market growth Lead-time Inventory Total product cost • 5S • TPM / Setup • QCPC • DIVE • Standard work • Process cert • Process robust • Benchmarking • 3P • Factory • Site / Process • Cell / process • Work step

  42. PRE-WORK KAIZEN EVENT PROCESS Develops insight on how strongly the Value Stream’sImpacted Metrics affect the current Aerostructures Goals

  43. STRATEGIC PLANNING • Sponsor alignment on objectives High-level problem statement Confirmed kaizen level Defined event objectives Assurance that the project aligns to strategic plans Proposed event team members/leader(s) Confirmed event dates & agenda Approved event budget & resources Final project approval Project charter

  44. Develops insight on how strongly the Value Stream’sImpacted Metrics affect the current Aerostructures Goals PRE-WORK KAIZEN EVENT PROCESS

  45. STRATEGIC PLANNING • Event stakeholder and participant communication Quality Customer satisfaction Market growth Lead-time Inventory Total product cost • Factory • Site / Process • Cell / process • 5S • TPM / Setup • QCPC • DIVE • Standard work • Process cert • Process robust • Benchmarking • 3P • Work step 44

  46. KEY LEARNING POINTS Kaizen can be applied at different organizational levels Needs analysis will determine the level of kaizen The kaizen type should align to the need Event plans must be actively endorsed by the sponsor Stakeholders and participants must be engaged early Event charter documents crystallize the approved plan

  47. EXERCISE: STRATEGIC PLANNING Prior to your scheduled event planning meeting with the sponsor you get an email from him that instructs you to conduct a 5S event to resolve the delivery problem. This manager is known as a 'get it done' type that supports ACE and expects quick results. You have a 15 minute meeting next week with the GM to discuss it. • In your previously formed teams: • Do you agree with this approach? Does it align with the plan you prepared earlier? Would it produce the desired results? • What alternatives can you propose? • Who should you involve at this point? • How will you communicate your recommendation to the sponsor? • What do you need from your sponsor? • Post your information on a flipchart and share with the rest of the class.

  48. KAIZEN EVENT PROCESS Deliverables Process Step • Develop a detailed problem statement • Confirm team membership and roles • Confirm event scope and boundaries • Create the logistics plan Objective The event charter and logistics plans are finalized and loaded to the ACP event management tool. • Finalized charter • Event checklists • Logistics plan • ACP event setup

  49. EVENT PLANNING CHECKLISTS Event guides available from ACE website Standard checklists for pre-event preparation Event type and scope determine most appropriate checklist 48

  50. FINALIZE THE CHARTER • Define a specific problem statement Clear Specific Quantifiable A problem statement expresses the words that will be used to keep the effort focused and it should represent a solvable problem. 49

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