How I Got Blitzed and Lived to Tell the Story: Supplier Development Fast, Slow, Kaizen to the Max!

Patricia E. Moody President Patricia E. Moody, Inc

Copyright 1999 Patricia E. Moody, Inc 978-526-1278 PEMoody@aol.com

Lets Zero in On Supplier Development:

Expertise at the supplier level does not equal expertise for the customer THE GOAL IS SUPPLIER SELF-RELIANCE
Suggestion systems Kaizen programs Honda BP, Chrysler SCORE, Motorola U, Nypro Institute Typical results: Improved productivity, inventory down, waste gone, lean mfg and smarter purchasing.
Copyright 1999 Patricia E. Moody, Inc 978-526-1278 PEMoody@aol.com

Supplier Development Methods

Classic Industrial Engineering or, The Kaizen Family: Honda BP Kaizen Blitz and other Kaizen programs Chrysler SCORE Solectron C.S. Index John Deere programs
Copyright 1999 Patricia E. Moody, Inc 978-526-1278 PEMoody@aol.com

The Roots of Kaizen (to make better)

Post-World War II Japan industrial productivity 1/8 of U.S. 1948 Training Within Industries ramp-up 1950s - Juran, Deming, Shainin Quality Drives Labor unions outlawed --Quality Circles 1960s - Toyota Production Systems and JIT 5Ss, U-line cells, pull systems, fail-safe, visibility systems, fast flow, jidoka
Copyright 1999 Patricia E. Moody, Inc 978-526-1278 PEMoody@aol.com

Typical Kaizen Process Elements

1. Kanban 2. Cells 3. Pull systems and one-piece flow vs. batch 4. Standard work (industrial engineering) 5. Tool boards, maps, video, observations, base and on-going data gathering.

Copyright 1999 Patricia E. Moody, Inc 978-526-1278 PEMoody@aol.com

Learning to See
Gemba - The Three As The Seven Wastes PDCA The Supplier Survey

Copyright 1999 Patricia E. Moody, Inc 978-526-1278 PEMoody@aol.com

Honda BP
origins of BP proven results not-consultant dependent 13 weeks

Copyright 1999 Patricia E. Moody, Inc 978-526-1278 PEMoody@aol.com

What is BP?
Best Position Best Productivity Best Product Best Price Best Partners

Copyright 1999 Patricia E. Moody, Inc 978-526-1278 PEMoody@aol.com

BP Basic Data
Created by Teruyuki Maruo, Japan 1977 90+ companies - 120+ projects Supplier associates affected 120k NA Productivity gains overall: 47% (total pieces/hr before BP compared to after) Quality improvement overall: 30% Cost down overall: 7.25% +/Copyright 1999 Patricia E. Moody, Inc 978-526-1278 PEMoody@aol.com

BP Basics
Associate involvement Utilize existing resources Minimum investment Raw material utilization Identify and eliminate waste C.O.P.D.S.

Copyright 1999 Patricia E. Moody, Inc 978-526-1278 PEMoody@aol.com

Seven Wastes
Over-production Idle time Delivery waste Waste in the work itself Inventory waste Wasted movement Waste from rejected parts
Copyright 1999 Patricia E. Moody, Inc 978-526-1278 PEMoody@aol.com

Plan Do Check Act

Plan: Analyze situation, make schedule, assign responsibility Do: Implement the plan Check: Compare the results from implementation against the plan Act: Countermeasure faults. Standardize and repeat continuous improvement cycle.

Copyright 1999 Patricia E. Moody, Inc 978-526-1278 PEMoody@aol.com

The 3As
Go to the actual place, the value-adding location, the mountain where the gold is buried. See and touch the actual parts to understand the actual situation.

Copyright 1999 Patricia E. Moody, Inc 978-526-1278 PEMoody@aol.com

Kaizen Blitz
Rapid improvements in typically 3 days, setup reduction 70 - 90%, productivity 20 - 60%, process time reduction 40 - 80%, inventory reduction 30 - 70%, walking distance reduction 40 - 90% Just do it! - Change is good! Powerful (and dangerous) What happens next?
Copyright 1999 Patricia E. Moody, Inc 978-526-1278 PEMoody@aol.com

Kaizen Blitz Principles

Be open-minded. Maintain a positive attitude. Reject excuses, seek solutions. Ask Why? Why? Why? Take action. Implement now. Dont wait for perfection. Go to the experts. Disregard rank. Copyright 1999 Patricia E. Moody, Inc Just do it! 978-526-1278 PEMoody@aol.com

Four Days to Blitz, The New Way

Prework: Learning, Planning, Preparing Day 1: Hit the ground running, Do it Now! Day 2: Build it, Try it, Change it! Day 3: Change it again, Try it again and again Day 4: Refine it, Test it, Prove it!

Copyright 1999 Patricia E. Moody, Inc 978-526-1278 PEMoody@aol.com

Three Steps to Workforce Development

Step 1. Perform a workforce audit. Step 2. Create a training and development master plan that includes: Component 1: The Budget Component 2: The Management Review Component 3: The Capabilities Survey Step 3. Reward results and build accountability.
Copyright 1999 Patricia E. Moody, Inc 978-526-1278 PEMoody@aol.com

Four Steps to Process Flow Development

Step 1 - Compress a sequence of process steps. Step 2 - Put process steps in parallel (vs. serial) Step 3 - Build on process platforms. Copy and improve. Step 4 - Expand the view of the process, e.g. from a group of cells to flow.
Copyright 1999 Patricia E. Moody, Inc 978-526-1278 PEMoody@aol.com

How to tell if there is improvement...

1. Time 2. Space 3. Resource use - resource usage ratios, costs 4. Results - process quality, primary customer satisfaction, secondary customer satisfaction, financial cash flow.

Copyright 1999 Patricia E. Moody, Inc 978-526-1278 PEMoody@aol.com

Customer/Supplier Alignment
It is NOT about sameness; it IS about parallel movement in the same direction.

Copyright 1999 Patricia E. Moody, Inc 978-526-1278 PEMoody@aol.com