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Kaizen Training
Competing in the Marketplace
What factors are important to the customer?

John Deere - Supplier Development

John Deere Supplier Development

Kaizen Training TIME:

The single best indicator of competitiveness

Set-up or Change-over Time

Manufacturing Cycle Time

Product Development Time Customer Lead Time / Delivery Time
Working to reduce or minimize each of these times can make your company more valuable to both its internal and external customers.
John Deere Supplier Development

Kaizen Training
Shrinking Lead Times
Order Lead Times Manufacturing Lead Times Delivery Lead Times

Order Lead Times Manufacturing Lead Times Delivery Lead Times

Reducing the overall time from receiving the order to delivering the product makes your company more responsive to the customer. This can become the deciding factor when the customer makes their selection. As can be seen, manufacturing is only one part of the entire process. Inputting, processing, and issuing orders is an area for improvement, as well as, assembly, loading and delivery to the customer`
John Deere Supplier Development

Kaizen Training
Wheres the Time in Lead Time
This timeline represents an overall lead-time, with very little time spent on adding value to the product.
Non-Value Added Time (NVA) 99% of Total Lead time Value Added Time (VA) 1%

Common Improvement Efforts

Concentrated on reducing VA time, with no attention given to NVA.

VA 1/2 %

Non-Value Added Time (NVA) 99% of Total Lead time

Results of Common Improvement efforts, did not improve response time. VA time is reduced, but, the costs for those improvements in lead time was substantial.
John Deere Supplier Development

Kaizen Training
Wheres the Time in Lead Time

When we look at attacking the NVA Activities in the Timeline and compare that to the original timeline:
Greatest Opportunities are actually here!

Non-Value Added Time (NVA) 99% of Total Lead time NVA Time 95% of Total Lead time VA 5%

Value Added Time (VA) 1%

Great Job!!

This shows a 5X improvement in lead time

John Deere Supplier Development

Kaizen Training
Different Types of Activities
Being able to tell the difference between NVA and VA activities is an important step in the Improvement Process.

Value Added Activity (VA)

An activity that changes raw material to meet customer expectations. Those activities that take time, or occupy space but do not add to the value of the product.

Non Value Added Activity (NVA)

You must ask yourselves Would you as a customer be willing to pay for any NVA activity being performed to that NEW 4x4 Pickup you just ordered?

John Deere Supplier Development

Kaizen Training
Some examples NVA Activities:
Walking
Unnecessary stock on hand Transporting parts Waiting on machine cycle Generating useless reports Unnecessary motion

THE GOAL IS TO ELIMINATE THE NON-VALUE ADDED ACTIVITIES.

John Deere Supplier Development

A definition: Destroy, in our minds, the concepts and techniques of manufacturing that we practice today. Create a vision of what our production system and manufacturing techniques should be.
We must avoid the urge to discover more sophisticated and technological solutions to tasks we shouldnt be doing at all.

Carry out that Vision by breaking through the status quo.

John Deere Supplier Development

Kaizen Training
Basic Rules for Change
Keep an open mind to change No such thing as a dumb question or idea Avoid spending money (Capital expense should be a last resort) Maintain a positive attitude Dont make excuses & question current practices

Think about how to do it, NOT why it cant be done

Just do it!! Have Fun!!!
John Deere Supplier Development

Kaizen Training
Steps on Team Development
Forming This is the development of a multi-functional
team with a variation of backgrounds and knowledge

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Storming Open & honest discussion, also brainstorming

Norming Stage where the group agrees how to
operate as a team

Performing Agreement on solutions & taking action

Adjourning Closing on the continuos improvement process
after 30 days
John Deere Supplier Development

Kaizen Training
What is TAKT Time?
TAKT time is how many minutes or seconds are needed to make one part when considering the daily volumes, to be produced in that workcell and the total time available to perform the job.
TAKT time is NOT the time it takes to manufacture the product. It is based on customer demand.

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Who is the customer?

The next operation Customer orders
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Kaizen Training
TAKT Time Calculation
Production Time Available / Period

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Number of Required Units / Period

TAKT

Production Time Available / Period (one shift):

Shift Time ( 8 hrs. ) Breaks - 2 @ 10 minutes Clean-up at end of shift Production Time Available: 10,500 Units Sold Monthly 21 Working shifts / month 480 mins. - 20 mins. - 5 mins. 455 mins.

or 27,300 secs.

Units Required / Period (one shift):

500 Required units / shift

TAKT Time:

27,300 secs / shift 500 units / shift

54.6 secs.
John Deere Supplier Development

Kaizen Training
The 5S Housekeeping Standards
First Step towards Continuos Improvement
The aim of 5S is to create an atmosphere to keep a clean, organized, safe and efficient workplace for everyone.
The foundation for the practice of 5S, comes from a Japanese program derived from these words, seiri, seiton, seiso, seiketsu and shitsuke. The 5Ss are a conventional approach towards maintaining and improving the work place. The following words have been chosen for the 5S acronyms.

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Sort
Straighten

Sanitize (Safety)
Sustain

Sweep

John Deere Supplier Development

Kaizen Training
Meaning of the 5Ss
Sort
Straighten
Examine everything at the workplace & identify what is needed and what can be discarded

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Organizing the way things are put away with efficiency, quality, and safety in mind. Need to decide where and how things should be put away and what rules should be obeyed to insure that it is maintained. Sweeping, scrubbing and cleaning of the building, machines, fixtures & tools so that all areas of the workplace are neat & tidy. This leads to early detection of mechanical problems before they become major breakdowns. Machines cry!
John Deere Supplier Development

Sweep
(Scrubbing clean)

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Meaning of the 5Ss
Sanitize
(Safety)

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Insuring that each workplace is properly designed for safety. This is to protect every member from the dangers during the performance of their assigned tasks.
Developing the practice necessary to continually participate in the 5S process. This requires that each of the Ss become a personal habit. This is the most difficult of the 5Ss, but it is the most important factor in achieving long term success. Establishing routines and procedures for maintaining and improving on the first four (Ss), incorporating visual management tools.
John Deere Supplier Development

Sustain
(Standardize)

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WASTE

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Do MORE with LESS

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Staffing
Waste

Productivity
Productivity

John Deere Supplier Development

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SHIFT MINDSET
CURRENT THINKING REQUIRED THINKING
Processing Transportation

WASTE
WASTE NOT DEFINED REACT TO LARGE EXAMPLES REACTIVE IMPROVEMENT

Inventory

Waiting

TYPES Correction OF WASTE OverProduction Motion

WASTE IS "TANGIBLE IDENTIFY MANY SMALL OPPORTUNITIES -LEADS TO LARGE OVERALL CHAGE CONTINUOUS IMPROVEMENT

John Deere Supplier Development

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ELEMENTS OF WASTE
Definition
1. Transportation - Transporting farther than necessary or temporarily locating, filing, stacking and moving parts (people, paper, information) is waste. 2. Correction - Doing something over is waste. 3. Overproduction - Generating excess paper or information, or generating information or paper too soon in a process is waste.

Example
1. Transportation - Carrying Tools to Point of Use

2. Correction - Redo an Activity Because of Error 3. Overproduction - Number of Copies

John Deere Supplier Development

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ELEMENTS OF WASTE
Definition
4. Motion - Unnecessary work movements are a form of waste.

Example
4. Motion - Tools in drawers

5. Waiting - Waiting for people, 5. Waiting - Meetings to start paper and information is waste it stops work. 6. Inventory - Too much of anything is waste. 7. Processing - this is waste in the process itself. Redundant activities 6. Inventory - Supplies

7. Processing - Typed when handwritten would be sufficient

John Deere Supplier Development

Kaizen Training
Process requires ongoing inspection and enforcement to ensure Standardized Work is being followed
Standards

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Enforce

Inspect

Process does not improve automatically

Standardize Problem Solve Stabilize
.

Identify Waste

- Following standards will only maintain, not improve, the process. - Improvement focuses on the entire process.
John Deere Supplier Development