GEMBA KAIZEN

OR
LEAN MANUFACTURING
 THE THREE PILLARS
OF KAIZEN
KAIZEN

Standardization Housekeeping Waste

Elimination
STANDARDIZATION
WHAT IS STANDARIZATION?

An Established Way People Do Their Job

Meet Quality, Cost, And Delivery Requirements
 WHAT DO WE MEAN

Procedures

Work Instructions

Formulas

Etc.
KEY FEATURES OF STANDARDS
1. Represent The Best, Easiest, And Safest Way To Do A Job
2. Offer The Best Way To Preserve Know-how And Expertise
3. Provide A Way To Measure Performance
4. Show The Relationship Between Cause And Effect
5. Provide A Basis For Both Maintenance And Improvement
6. Provide Objectives And Indicate Training Goals
7. Provide Basis For Training
8. Create A Basis For Audit Or Diagnosis
9. Provide A Means For Preventing Recurrence Of Errors And
Minimizing Variability
 KAIZEN AND ISO 9000

ISO 9001-2000 Excellent Way To Achieve

Standardization

Kaizen Efforts And Waste Elimination

Should Precede Writing Standards
HOUSEKEEPING
(The 5 S’s)
 Seiri

Shitsuke Seiton
THE 5-S
SYSTEM
Seiketsu Seiso
 THE 5-S SYSTEM

Characteristics:
• Organization
• Orderliness
• Cleanliness
• Standardized Cleanup
• Discipline
 SEIRI -SORT
• Sort Through Everything in the
Target Area

• Separate Items That Are Unneeded

or in the Wrong Place

• Remove Those Items From the

Work Area – 30 Day Rule
 SEITON
SET IN ORDER or STRAIGHTEN

• Decide and Organize Where to Keep

Necessary Items
• Decide How to Keep Them
• Designated Address, Name & Volume
• Easy for Anyone to Find and Use Them
• Make It Obvious When They Are Not in
Their Correct Place
 SEISO
SHINE or SCRUB
• Clean everything, inside and out

• Inspect through cleaning

• Prevent dirt, grime, and

contamination from occurring
 SEIKETSU - SYSTEMATIZE
• Keeping One’s Person Clean By
Wearing Proper:
Work clothes
Safety Glasses
Gloves, & Shoes

• Maintain a Clean, Healthy Work

Environment

• Continue to Work on Seiri, Seiton, and

Seiso Every Day
 SHITSUKE - SUSTAIN

• Ensure that 5-S activities become

a habit that everyone performs
continually

• Build a commitment to adhere to

5-S standards
 THE 5-S SYSTEM
Five Key Points for Success
• Do not rely solely on 5S tools
• Provide encouragement at every opportunity
• Make explanations easy to understand
• Involve everyone
• Be disciplined
IMPLEMENTING A 5S PROGRAM

Identify Responsible Individual

Develop A Plan (Address the Magic Questions)

Before Kick-off Discuss Philosophy And

Benefits Of 5s Program – Get Feedback

Hold Kick-off Meeting

Write Procedures
ELIMINATE WASTE
(MUDA)
 ADDING VALUE
Only An Activity That Physically
Changes The Product Adds Value
VALUE ADDING NON-VALUE ADDING
PLATING MOVING
HEAT TREATING COUNTING
CUTTING INSPECTION
ASSEMBLY STORING
MIXING
MELTING
ETC.
If You Are Doing Something That Does Not
Add Value – You Are Creating Waste!
THE SEVEN CATEGORIES
OF WASTE
Overproduction
Inventory
Repair / Rejects
Motion
Processing
Waiting
Transport
 OVERPRODUCTION WASTE

“Things Can Happen – To Be On The Safe Side

Produce More Than Necessary”

Just-in-time Methods Prevent This Type Of Waste

This Is The Worst Type Of Waste

• People Get False Sense Of Security
• All Sorts Of Problems Are Covered Up
• Obscures Vital Information
 INVENTORY WASTE
Final Products
Semi finished Products
Parts Final Product
Supplies Received By
Customer

Someplace
In The
Factory Value
No Value
 THE PROBLEM WITH
INVENTORY

Scrap
Productivity
Machine Vendor Problems
Inventory
Downtime Delinquencies
Change
Equipment Orders
Imbalances Long Setups

Inspection Paperwork Purchase

Backlog Backlog Lead Times
 REPAIR / REJECT WASTE
Rejects Interrupt Production & Require
Rework

Rejects May Also Damage Expensive

Jigs Or Machines

Attendants Must Be Assigned To Watch For

Rejects
 THE WASTE OF MOTION
Any Motion Of A Person’s Body Not Directly
Related To Adding Value Is Unproductive

When A Person Is Walking He Is

Not Adding Value

Any Action Requiring Heavy

Exertion Should Be Avoided
 THE WASTE OF PROCESSING
Sometimes Inadequate Technology Or Design
Leads To Waste In The Processing Work Itself
• An Unduly Long Approach Or Overrun
• Unproductive Striking Of The Press And Duburring

Many Times Results From Failure To

Synchronize Processes
 THE WASTE OF WAITING

Occurs When Hands Of The Operator Are Idle

• Work Is Put On Hold Because Of Imbalances
• Lack Of Parts
• Machine Downtime
• Operator Simply Monitoring
A Machine
THE WASTE OF TRANSPORT
All Sorts Of Transport
• Trucks
• Forklifts
• Conveyers

Transport Is Essential, But Moving Materials

Or Product Adds No Value

Damage May Occur During Transport

Any Process Distant From Main Line Should Be

Incorporated
WASTE IN MANUFACTURING
Worst Type of
Waste At Toyota
Excessive Leads To
Production Overproduction
Resources
Leads To
More: Creates a
Manpower Need For Excessive
Equipment Inventory
Floorspace
Unnecessary Capital
Leads Overtime To
Investments
 MUDA, MURA, MURI
The Three MU’s

Muda – Waste

Mura (Irregularity)– Whenever A Smooth Flow Of

Work Is Interrupted In An Operator’s Work

Muri (Strenuous Work) – Strenuous Conditions For

Worker And Machine. May Cause Slowdowns And
Mistakes

Both Mura And Muri Are Waste (Muda) And

Need To Be Eliminated
THE FOUNDATION OF THE
HOUSE OF GEMBA
 GEMBA KAIZEN

We Have Been Talking

About What Is Kaizen

Kaizen Needs To Be Applied To Gemba

Gemba Means “Real Place”

Where Real Action Occurs

In Narrower Context Gemba Means The Place

Where Products Or Services Are Formed
 GEMBA MANAGEMENT
GOLDEN RULES
1. When A Problem Arises Go To Gemba First

2. Check The Gembutsu (Relevant Objects)

3. Take Temporary Countermeasures On The Spot

4. Find The Root Cause

5. Standardize To Prevent Recurrence

 HOUSE OF GEMBA
FOUNDATION
A Learning Enterprise

Suggestion System And Quality Circles

Self-discipline

Visual Management

Just-in-time
 A LEARNING ENTERPRISE
Gemba Should Become A Citadel Of Learning

Management Must Empower Gemba Employees

By Providing Learning Experiences

Rely Heavily On Common Sense And Simple Checklists

• Asking “Why?” Five Times
• Housekeeping
• Muda, Mura And Muri
 A LEARNING ENTERPRISE
(Continued)
Based On Fundamental Human Values
• Respect For Humanity
• Commitment
• Determination
• Sensible Use Of Resources

Learning Should Mean “Doing It”

Opportunities To Learn By Practicing And Doing

 A LEARNING ENTERPRISE
(Continued)
Ten Basic Rules For Practicing Kaizen In Gemba
1. Discard Conventional Rigid Thinking About Production
2. Think Of How To Do It, Not Why It Cannot Be Done
3. Do Not Make Excuses. Start By Questioning Current
Practices.
4. Do Not Seek Perfection. Do It Right Away Even If For Only
50% Of Target.
5. Correct Mistakes At Once
6. Do Not Spend Money For Kaizen
7. Wisdom Is Brought Out When Faced With Hardship
8. Ask “Why?” Five Times And Seek The Root Cause
9. Seek The Wisdom Of Ten People Rather Than The
Knowledge Of One
10. Remember That Opportunities For Kaizen Are Infinite
 SUGGESTION SYSTEM
AND QUALITY CIRCLES
Proof Employees Actively Involved In Kaizen And Management
Successful In Building Kaizen Infrastructure

Japanese Style Stresses Morale-boosting

Japanese Managers Will Go Along With Suggestion If

It Contributes To Any One Of The Following Goals
• Makes The Job Easier
• Removes Drudgery
• Removes Inconvenience
• Makes Job Safer
• Makes Job More Productive
• Improves Product Quality
• Saves Time And Cost
 BUILD SELF-DISCIPLINE
Ways to help employees acquire self-discipline
1. Reward incremental steps
2. Catch them doing it right
3. Open yourself to questions
4. Develop a culture that says it’s okay.
5. Make the process known to improve standards
6. Conduct assessment
7. Encourage customer involvement
8. Implement a suggestion system
9. Establish quality circles
10. Build in reward systems
11. Communicate expectations clearly
12. Conduct frequent reviews of the process
 BUILD SELF-DISCIPLINE
(Continued)
13. Provide measurement feedback
14. Foster a climate of cooperation
15. Give specific instructions regarding criteria
16. Be involved in setting standards
17. Explain why
18. Set a good example
19. Teach how and why
20. Make progress displays visible
21. Remove barriers
22. Encourage positive peer pressure
23. Create a threat-free environment
 VISUAL MANAGEMENT .
Make Problems Visible
Stay in Touch With Reality
Visual Management of Five M’s
• Manpower
• Machines
• Materials
• Methods
• Measurements
Visual Management of the Five S’s
Posting Standards
Setting Targets
THE VISUAL WORKPLACE
 THE VISUAL WORKPLACE
The Team’s Territory
1. Identification of territory
2. Identification of resources, etc.
3. Identification of the team
4. Markings on the floor
5. Markings on tools and racks
6. Technical area
7. Communication & rest area
8. Information and instructions
9. Neatness
Visual Documentation
10. Mfg. instructions
Visual Production Control
11. Computer terminal
12. Production schedule
13. Maintenance schedule
14. ID of inventories & WIP
Visual Quality Control
15. Monitoring signals for machines
16. Statistical process control
17. Record of problems
Display Indicators
18. Objectives, goals and results
Rendering Progress Visible
19. Improvement activities
20. Company project & mission statement
VISUAL PLANT LAYOUT

• “Line-of-Sight” Production
• Floor-space
• Distance Traveled
• Operational Handoffs
 JUST-IN-TIME

A System of “Pull Production”

Introduction To Just-In-Time
 WHAT IS JUST IN TIME?

• Many Meanings
– Inventory Reduction
– Productivity Improvement
– Quality Improvement
• Simplification of Processes
• The Elimination of Waste
• Complete Supply Chain
ELEMENTS OF JIT
• Reduce lead times
Faster
• Improve quality to zero defects
Better
• Minimize cost
Cheaper
 EXPECTED BENEFITS
FROM JIT
Reductions!!
• 50-90% in Throughput Times
• 50-90% in Work in Process
• 60-80% in Scrap and Rework
• 50-90% in Setup Times
• 30-60% in Required Mfg. Space
Source: Just-in-Time: Making it Happen
A.W. Sandras, 1989
 MAJOR BENEFITS OF JIT
• Improved: • Reduced:
– Quality – Inventory
– Productivity – Lot Sizes
– Service – Lead Times
– Capacity – Unit Costs
– Standardization – Design Time
– Transport Systems – Space
– Flexibility – Energy
THE SEVEN ELEMENTS OF JIT
• Just-in-time Philosophy
• Quality At The Source
• Uniform Plant Load
• Overlapping Operations
• Minimum Setup Time
• Kanban
• Just-in-time Purchasing
Just-In-Time Philosophy
 JUST-IN-TIME PHILOSOPHY

ELIMINATE WASTE THROUGH

BALANCE, SYNCHRONIZATION, & FLOW
QUALITY
EMPLOYEE INVOLVEMENT

Waste - anything other than the absolute minimum

resources Of material, machines, and manpower
required to add value to the Product.
 ABSOLUTE MINIMUM
RESOURCES
• One Supplier, If Possible

• No People, Equipment, Or Space Dedicated To

Rework

• No Safety Stock

• No Excess Lead Times

• No People Doing Jobs That Don’t Add Value

Uniform Plant Load
BALANCE, SYNCHRONIZATION,
AND FLOW
UNIFORM PLANT LOAD
Cycle Time - Measures Rate Of Requirement
Produce What's Needed
Produce At The Right Speed
Start With The Last Operation
Smooth Out The Requirement
LEVEL LOADING
Produce At Right Frequency
Produce As Frequently As Customer Requires
 LEVEL LOADING
TRADITIONAL JIT
SCHEDULE SCHEDULE
Item 1 2 3 ……... Days Item 1 2 3 ……... Days
A A
10 DAYS
B B

C C

D D

CONTINUOUS IMPROVEMENT EFFORTS

REQUIRED TO ACHIEVE JIT SCHEDULE
BENEFITS OF LEVEL LOADING
• Learning Curve Improvements

• Increased Mix Flexibility

• Reduced Inventory

• Shorter Lead Times

• Quality Improvements
Overlapping Operations
TRADITIONAL MANUFACTURING
Screw Machine Dept. Milling Dept.

Drilling & Tapping Dept.

Grinding Dept.
 JUST-IN-TIME
MANUFACTURING

Layout Based On Product Not Function

 PLANT LAYOUT
OBJECTIVES
• Provide a Systematic Approach for
Manufacturing Plant Layout

• To Increase the Productivity and Effectiveness of

Those Assigned to Design and Implement
Manufacturing Plant Layouts

• To Help Prepare for Plant and Organization-wide

Implementation Programs
TYPES OF VISUAL PLANT
LAYOUT

Straight Line

U-Shaped

S-Shaped
W-Shaped
 FACTORS INVOLVED IN
EVALUATING
PLANT LAYOUT INTANGIBLES
• Ease of Future • Ease of Supervision and
Expansion Control
• Flexibility of Layout • Ability to Meet Capacity or
• Flow of Material Requirements
Effectiveness • Investment or Capital
• Material Handling Required
Effectiveness • Fit with Company
• Storage Effectiveness Organization Structure
• Space Utilization • Working Conditions and
• Safety and Employee Satisfaction
Housekeeping
 NEGATIVE IMPACTS OF A
NON-VISUAL PLANT LAYOUT
• High Materials Handling Costs
• Cycle and Lead Time Delays
• High Work-in-Process Inventories
• Lower Than Optimum Quality
• Product or Parts Damage
• Safety and Morale Problems
• Poor Equipment Utilization
• Congested Aisles
• Wasted Floor Space
Minimize Setup Times
 MINIMUM SETUP
THE KEY TO LEVEL LOADING
Time To Go From Good Product To Good Product
Ground Rules
What Is Being Done?
Simplify Not Avoid
Focus On Machine Downtime Then Cost
Achieve At Least 75% Low Cost Reduction
Why Is It Being Done?
Not To Reduce People
Not To Produce More
Who Is Doing It?
An Employee Involvement-teams
 SETUP ANALYSIS
External
Can Be Done With Machine Running
Internal
Machine Must Be Stopped
Adjustments
Eliminate
Know Exact Machine Positions
Standardize
Clamping
Do Away With Threads
Eliminate Tools
Problems
Root Cause Analysis
 TOYOTA SETUP CONCEPTS
Techniques For
Concepts Applying Concepts
Separate Internal Setup Standardize The External
From External Setup Setup Actions

Convert As Much As Standardize Only The

Possible To External Necessary Portions
Setup Of The Machine

Eliminate Adjustment Use A Quick Fastener

Process
Use A Supplementary Tool
Abolish The Setup
Step Itself Use Parallel Operations
Kanban System
THE KANBAN SYSTEM

• Pull versus Push

Systems
• Kanban Types
THE KANBAN SYSTEM

• Scheduled Push
– Internally Focused
• Demand Pull
– Externally Focused
 KANBAN RULES
1. Withdraw Necessary Products From Preceding Process In
Necessary Quantities At Necessary Point In Time

2. Preceding process should produce its products in quantities

withdrawn by subsequent process.

3. Never convey defective products to subsequent process.

4. Minimize number of Kanbans.

5. Use Kanbans to adapt to small fluctuations in demand

(fine-tuning of production by Kanban)
Quality At The Source
QUALITY AT THE SOURCE
QUALITY MAKES JIT POSSIBLE
Some JIT Quality Improvement Activities
• Autonomation
- Foolproofing
- Visual Displays
- Line Stopping
• Process Control
• 5 “S” Program
• Continuous Improvement
- Kaizen
• Job Improvement
• Company-wide Quality Assurance
Autonomation
 AUTONOMATION
“Ninben-no-aru Jidoka”

Never Allow Defective Units From A Preceding

Process Flow Into And Disrupt Subsequent Processes

Jidoka = Automatic Control Of Defects,

Ninben-no-aru Jidoka = Automation With A Human Mind

• Often Involves Automation

• Not Limited To Machine Processes
• Technique For Detecting & Correcting Production Defects
• Mechanism To Stop The Line/machine
 LINE STOPPING AT TOYOTA

Each Worker - Power & Responsibility To Stop

All Operations Must Be Done In Accordance With

Standard Operations Routine

Supervisors & Engineers Must Investigate And Take

Action

Supervisors Responsibility When Line Stops:

- Teach Workers To Stop Whenever Defects Occur
- Discover And Correct The Cause Of The Defects
 METHODS FOR STOPPING
THE LINE AT TOYOTA
Mechanical Checks

Foolproof Systems

Contact Method

Altogether Method

Action Step Method

 VISUAL CONTROLS
AT TOYOTA
Indicator Boards
Call Lights

Standard Operations Sheets

Kanban Tickets

Digital Display Panels

Store And Stock Indicator Plates

Process Controls
 PROCESS CONTROL
Know and understand the process

Define all requirements

Established procedures

Use data to monitor the process

Operator involvement
The 5 “S” System
Continuous Improvement
 CONTINUOUS
IMPROVEMENT
• What is Continuous Improvement?
“The aim is to do what we already do,
only do it better… seeks steady,
incremental improvement to process
performance”
Hammer and Champy
 CONTINUOUS
IMPROVEMENT
C.I. Philosophy & Objectives
• Study Processes
• Simplify Processes
• Reduce Waste
• Apply Missing but Needed Resources
• Implement and Document Improvements
• Continuous Improvement Cycle
Job Improvement
HUMAN RESOURCE
DEVELOPMENT
AND INVOLVEMENT
• Involvement and Empowerment
• Job Design
• Organization Design
• Education and Training
• Compensation
• Motivation
INVOLVEMENT AND
EMPOWERMENT
• Suggestion Schemes
• Cross-Functional Problem
Solving
• Self-Directed Work Teams
EDUCATION & TRAINING

• Basic Education
• Technical Education & Training
• Behavioral Education
• Cross Training
 JOB DESIGN
• Degree of Specialization
• Job Rotation
• Job Enlargement
• Job Enrichment
• Minimizing Labor Grades
 COMPENSATION

• Individual & Group Incentive

Plans
• Piece Rate Pay
• Skill-Based Pay
• Gain Sharing
 MOTIVATION

• Rewards
• Recognition
• Evaluation
• Implementation of
Ideas
• Employment Security
Company Wide Quality Assurance
 ENGINEERING
• Simultaneous Engineering
– Product Development
– Process Development
– Design for Manufacturability
– Facility Design
– Minimization of Parts
– Short Cycle Product Development
• Engineering Change Control &
Implementation
ENGINEERING - PRODUCT
DEVELOPMENT
• Reduce the Total Number of
Products or Models
• Minimize Parts and Materials
• Use the Same or Similar
Component
• Standardize Training
ENGINEERING - PROCESS
DEVELOPMENT
• Tool Redesign
• Machine Modifications
• Set-Up Reduction
• Layout Changes
• Modifications/Adjustments to
Reduce Scrap
 ENGINEERING CHANGE
CONTROL
AND IMPLEMENTATION
Possible Improvements:
• Engineering Change Notice Reduction -
75%
• Engineering Change Lead-Time
Reduction - 75 - 90%
• New Product Development Lead-Time
Reduction - 45 - 50%
• Overall Engineering Cost Reduction -
30%
 ENGINEERING CHANGE
CONTROL
AND IMPLEMENTATION
Identification of Opportunities:
• Inappropriate Staffing of
Support Functions
• Lengthy Approval Process
• Lack of Communication Between
Departments
• Inappropriate Tools
WHAT JIT BRINGS TO QUALITY

Immediate Feedback

Slower Run Speeds

Stopping The Process

Just-In-Time Purchasing
TYPICAL COST ALLOCATION

Percent Of Product Total Cost

Purchased Material & Components = 70%

Direct Labor = 10%

Overhead = 20%

A 5% Reduction In Purchasing Is
Same As 35% Reduction In Direct Labor
 THREE CATAGORIES
OF WASTE
Waste In A Company’s Own
Manufacturing Process

Wastes In The Purchasing Process Itself

Wastes In The Manufacturing Process

Of A Company’s Suppliers
 ELIMINATING WASTE IN
THE PURCHASING PROCESS
Most Purchasing Activities Do Not Add Value
Purchase Orders
Purchase Orders Amendments
Acknowledgements
Receiving Reports
Invoices
Off Loading Material NO VALUE
Placing Material Into Receiving ADDED ! !
Moving Material To Stockroom
Counting Items
Placing Items In Smaller Containers
Moving Items Into Assembly Area
 THE PURPOSE OF JIT IS
TO ELIMINATE WASTE
If It Doesn’t Add Value Then Try To Eliminate It!!

Eliminate Incoming Inspection

Insure Quality Before Incoming Inspection
Hard Work
Work With Suppliers
Understand Supplier’s Processes
Supplier’s Understand & Control Their Processes
Suppliers Understand Your Needs and Processes
CHANGING RELATIONSHIPS

Traditional Relationship - Adversarial

New Relationship
- Long Term
- Mutual Benefit
- Fewer Suppliers
- Better Suppliers
SUPPLY CHAIN MANAGEMENT

• External Customers
– Sales and Operations Planning
– Smoothing Customer Demand
– Developing JIT Customers
• External Supplier Relationships
– Evaluation, Selection & Consolidation
– Certification
– Supplier Development
– Vendor Managed Inventories
 EXTERNAL SUPPLIER
EVALUATION & SELECTION
• Quality and Reliability
• Willingness to Work Together - Responsiveness
• Technical Competence
• Commitment to Continuous Improvement
• Geography
• Price
- Total Acquisition Costs
- Processing Economics
 EXTERNAL SUPPLIER
CONSOLIDATION
• Sole Source vs.. Single Source
• Benefits
– Simpler Traceability
– Increased Communication
– Ability to Focus on Process
• Concerns:
– Traditional Focus on First-Cost
 LOGISTICS MANAGEMENT
SYSTEM
Internal
Logistics
Plants Outbound
Inbound Logistics
Logistics (Physical
distribution)

Supplier Organization Customer

The span of the logistics management system

 TIMING
Implement JIT Purchasing At The Right Time

1. Solve Internal Quality & Equipment Breakdown

Problems

2. Initiate Level Loading And

Cycle Time

3. Initiate A Pull System

IMPLEMENTATION
CONSIDERATIONS
• Management Considerations
• Determining What to do
• Measuring and Rewarding
Performance
• Implementation Phases
 MANAGEMENT
CONSIDERATIONS
• Strategic Justification
– Cost/Benefit Analysis
– Compromise/Tradeoff
• Top Management Commitment
• Leading the Cultural Change
• Developing Vision and Formulating
Plans
• Organizing for JIT
• JIT Education and Training
IMPLEMENTING
GEMBA KAIZEN
IMPLEMENTING GEMBA KAIZEN
Identify Responsible Individual &
Implementation Team
Develop A Plan
Get The Word Out And Get Feedback
Start With One Facility
Formal Kickoff
Develop Procedures
Develop A “Lessons Learned” File