SALZER ELECTRONICS LTD.

CONTINUAL IMPROVEMENT

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Improving with People Ideas
 WORD OF WISDOM

“It is not the strongest nor the

most intelligent of the species
that survives, but the one that is
most adaptable to change”
- Charles Darwin

"We don't have to change, survival isn't mandatory” 2

- W. Edwards Deming, Father of Quality Management
 Targets of Lean System

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The main Target of every company is to generate Profit.
 Continual Improvement and Waste
Continual Improvement frequently mention
the term “waste” which is anything that doesn’t add value.

Example for Waste:

Excessive Inventory

Inventory Value Sale Value

“The most dangerous kind of waste is the waste we do not recognize.” 4
- Shigeo Shingo (Toyota)
 Definition of Waste

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If it doesn’t add value, it’s waste.” – Henry Ford
 Lean… simply defined

TIME LINE
ORDER CASH

“All we are doing is looking at the time line, from the

moment the customer gives us an order to the point
when we collect the cash. And we are reducing the time
line by reducing the non-value adding wastes.”
- Taiichi Ohno
Taiichi Ohno (1912 – 1990) was a Toyota executive and one of the chief architects of the Toyota
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Production System. He is considered to be the father of Lean manufacturing system.
 Example: Value added & Non-Value added

Elapsed Time from Order to Delivery: 30 Days 7

Value-Added Time: 1 Hour, 25 Minutes
 Value added & Non-Value added
In typical companies, only about 5 percent of the total work performed
actually adds value to the product or service.

Lean manufacturing is a strategy for remaining competitive 8

through the endless pursuit of waste elimination.
 What is Value Added Work?

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Maximize Value added Activities
 What is Non-Value Added Work?

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Minimize Non-Value added Activities
 7 Wastes
The seven wastes originated in Japan,
where waste is known as “MUDA."
VALUE Non-Value Added (7 Wastes)
ADDED
 Transportation
 Inventory
 Motion
 Waiting
 Overproduction
 Over Processing
 Defects
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An easy way to remember the 7 wastes is TIMWOOD.
 Lean = Eliminating the 7 Wastes

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TPM = Eliminating the Waste + Continuous improvement
Waste 1. Over Production

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 Waste 1. Over Production
Definition: Producing materials that aren’t needed now

INTRODUCE JUST IN TIME (JIT)  JUST IN CASE 14

Waste 2. Inventory

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 Waste 2. Inventory
Definition: Excess raw-material, Work-in process or finished goods

INTRODUCE JUST IN TIME (JIT)  JUST IN CASE 16

SINGLE PIECE FLOW

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”
SINGLE PIECE FLOW

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Waste 3. Waiting

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 Waste 3. Waiting
Definition: Lost time due to Poor product flow

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LINK THE PROCESSES;
Waste 4. Transportation

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 Waste 4. Transportation
Definition: Excess movement of Work-in- process

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MAP THE PRODUCT FLOW
Waste 5. Motion – Unnecessary/Excess

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 Waste 5. Motion – Unnecessary/Excess
Definition: Wasted motion made while working.

ANALYZE AND REDESIGN THE ACTIVITIES / MOVEMENTS 24

Waste 6. Over Processing

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 Waste 6. Over Processing
Definition: Work that adds no value to the customer or business.

STREAM LINE EXISTING PROCESS & IMPLEMENT STANDARD26

OPERATING PROCEDURES (SOP)
Waste 7. Defects

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 Waste 7. Defects
Definition: Production of components which do not meet standards.

REDUCE DEFECTS THROUGH EMPLOYEE INVOLVEMENT AND28

CONTINUOS PROCESS IMPROVEMENT (CPI)
 8th Waste……!!!!
Modern Lean Manufacturing includes
"Unused Employee Creativity” as a eight waste.

Unused Employee Creativity: People’s Knowledge and skills

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that are not utilized by the company
 So… There are 8 wastes

Modern Lean considers 30

"Unused Employee Creativity” as the major waste.
 Creativity in Individuals
A function of Resources, Motivation and Creative thinking

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Creativity is a function of Resources, Motivation and Creative thinking
 What is Continuous Improvement?

Improvement
Time
Continuous improvements are linear, incremental improvements
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to an existing process, product or services.
 Problem with
continuous improvement
“With out standards there can be no improvement” (Taiichi Ohno)

Continuous improvements without Standardization leads to disaster

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 Continual Improvement

PDCA Cycles
PDCA
Continual Improvement
Standardize

Continual improvement speaks to the PROCESS of improvement

(always and forever (continually) ongoing,) rather than 34
the NATURE of the improvements - Edward Deming
 Break-through improvement
Ex: Six Sigma/
Lean

Continual Improvement

Breakthrough improvements are incremental, innovative or35

Radical improvements which involves high rate of return.
Improvement Continual Improvement

Improvement
Time Improvement Time
PDCA
Continuous Break-through
Improvement Improvement

Time Continual
Improvement

Continual improvement is a subset of continual 36

and break - through improvement.
 Employee Involvement in
Continuous Process Improvements

 Toyota, rather than hiring outside consultants

to improve its production process, relies
heavily on its employees to devise ways of
doing jobs more efficiently.

 In 1990 employee groups reduced total

production time by 30 seconds per car per day
while sustaining a high level of quality.
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 Employee Involvement – Toyota & General Motors

Toyota Motors Corp received Over 20 million suggestions

over a span of 40 years
General Motors, USA
Toyota, Japan
100 90%
90
80
70
60
50
40
30 23%
17.9%
20
10 0.84%
0
Suggestions received per Suggestions accepted
year

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Every Toyota employee suggested one suggestion per week!
 Continual Improvement (CI)
Salzer believes that the employee on the job knows the best
and can contribute significantly towards its growth and
prosperity by enthusiastic participation.

The continual improvement scheme is introduced to:

 To simulate creativity
 To encourage employee participation
 To recognize constructive ideas
 To recognize supervisors/Managers who motivate
employees and implement the suggestions

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Continual Improvement (CI)

Guide lines…..??? 40
 ELIGIBLE SUGGESTION

Suggestions should be based on PQVC and 7 Wastes

1. Improve Employee work culture
2. Increased Safety / Prevention of accidents
People
(Including EHS) 3. Improve the Environment, etc.
1. Improve product Quality
Quality 2. Improve aesthetics
3. Eliminate Quality Defects. etc.
1. Increase Cycle Time / Line speed
Velocity 2. Improve Process Flow
(Speed) 3. Increase Lead time, etc.,

1. Reduce Product Cost

2. Reduce Raw material cost
Cost 3. Reduce cost by new methods/techniques,
etc.

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Eligibility: All Employees & Visitors
 7 WASTES

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Target for suggestions: Min 2 per month per Employee
 NON – ELIGIBLE SUGGESTION

 Suggestions on Government Policies

 Suggestions which are already under consideration

of management / already implemented

 Suggestions on matters which are of the primary

responsibility of the suggested

 Repeated suggestions

 Suggestions which don't have feasible solutions .

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Suggestions shall be forwarded by individual and not group.
 CI SUGGESTION PROCESS - CI BOARD

CI Boards located at Assembly, Machine shop (Ext & IM) 44

and Transformer Division at Present
 Continual improvement Cards - CI Cards

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CI Cards provided in the CI Board – Bottom Left
 CI SUGGESTION PROCESS – STEP 1

After completing all the details, an assembler 46

put the card in the “New” Column
 CI SUGGESTION PROCESS – STEP 2

Suggestions
to be
assigned with
in 48 Hrs.

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CI Co-ordinator after checking the feasibility, “Assigned” the card
 CI SUGGESTION PROCESS – STEP 3

Short Term: 30 days Long Term: 90 days

Commitment for corrective actions shall be given by the

concerned with in 48 Hrs after the assignment.
Based on the actions required concerned HoD allot the card in
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“In process short Term” or “In process Long term”.
 CI SUGGESTION PROCESS – STEP 4

If the actions are not completed in the committed date the card
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shifted to “Past Due”. Top management will involve and advise.
 CI SUGGESTION PROCESS – STEP 5

After successful completion, the card is reviewed 50

by the audit Team for benefits
 CI SUGGESTION PROCESS – STEP 6

The Employees
will be suitably
awarded based on
the benefits of the
suggestion.
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After review the card is moved to “Completed”
 Continual Improvement (CI)

“Successful innovators
do not wait
until…they get a
bright idea – they go
to work. Innovators
will have to learn to
practice systematic
innovation”

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Thank you for the Patience A.Muthuswamy