“KAIZEN FROM START TO FINISH?” - ASQ Orange Empireasqorangeempire.org › ... › Kaizen-From-Start-to-Finish... · 10/9/2013 3 Those who have been part of the Kaizen • This

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“KAIZEN FROM START TO FINISH?”Vinay Goyal

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Disclaimer• This presentation has nothing to with my current employer and its

internal practices.

• I will try to avoid sharing names and internal practices of my previous companies during my presentations (unless they no longer exist)• All of the companies I worked for or with were successful companies in

their respective fields

• A copy of this presentation will be posted on Section website

• Part I and II presentation slides are already posted on section website• http://asqorangeempire.org/

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Presentation Outline

• Due to the nature of the topic:• This is a Three part Presentation

• Part I: (In August Clinic)• What is Kaizen?

• What are the key definitions, terminologies that are commonly used with Kaizen?

• Part II: (In September Clinic)• Kaizen Planning

• Management Support

• Team Building

• Implementation

• Part III: • Reporting

• Celebration

• On-going sustaining and future Kaizen Planning

• Q & A

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Presentation Outline

• We have a guest presenter among us• Who I will introduce in the last 15 minutes

• Loves talking a lot…

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Those who have been part of the Kaizen• This is an interactive session

• Please feel free to share your success (or “lesson learned” ) story• If you have any questions, please feel free to discuss, email me at

[email protected]

• Those who are new to Kaizen• Please feel free to ask questions

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Any Questions from the Previous Clinics ?• August and September Clinic Presentation

• Slides are posted on section website

• If you have any questions, feel free to discuss with me

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Quick Review

• Kaizen (改善)• The Japanese – Kanji - word "kaizen" simply means "good

change” or English word “improvement”• No inherent meaning of either

• “Continuous" or “Philosophy”

• It can be: One-time, On-going, Large or Small

• It is a combination of • Philosophy and (Kaizen) Related measuring methods

• Often it may look like a common sense but that too comes with• Exposure

• Experience

• Listening

• Sharing

• Discussing

• Most importantly Be a Good Listener First and look from other’s perspective

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Quick Review

• Kaizen (改善)• There should not be any rank

• Leave your ego at the door

• Everybody has equal opportunity to speak

• No idea is a bad idea

• Intention is not to look for a perfect solution • Yes, if possible

• But look for a better and improved solutions

• Keep making it better in smaller increments

• We cannot do it alone, so bring people from cross functional areas and work on process improvement

• Good Changes have no boundaries

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Quick Review - Kaizen• Endless Pursuit of Waste Elimination

• A continuous improvement mindset

• Everything that we do today can be improved

• Kaizen has no end• So title Kaizen from Start to Finish

• Finish means a short break for celebration but it is a never ending process

• Kaizen is gradual approach to improvement • Other approach is Great Leap approach also known as Innovation

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Kaizen Innovation

Japan Strong Weak

West Weak Strong

Quick Review - 3 MUs• Toyota Production System (TPS) picked three Mus

• Widely recognized as a reference to product improvement program

• Muda (Waste, Uselessness) • TIMWOOD:

• Transportation, Inventory Motion, Wait, Over-processing, Over-production, Defect

• Mura (Unevenness)• JIT system

• Keeping little or no inventory

• Supplying the production process • With the right part, At the right time, In the right amount, and First-in, first out

(FIFO) component flow.

• Muri (Overburden)• Putting employees or processes under unnecessary stress through

making unreasonable demands on them

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Quick Review - 3 MUs

• Waste reduction is one of effective ways to increase profitability • Value:

• A process adds value by producing goods or providing a service that a customer will pay for

• Waste• A process consumes resources and when more resources are

consumed than are necessary to produce the goods or provide the service that the customer actually wants

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Quick Review - 5 Ws and 1 HWHO

• Who does it?

• Who is doing it?

• Who should be doing it?

• Who else can do it?

• Who else should do it?

• Who is doing 3 MUs

WHEN

• When to do it?

• When is it done?

• When should it be done?

• What other time can it be done?

• What other time should it be done?

• Are there any time 3 MUs

WHAT

• What to do?

• What is being done?

• What should be done?

• What else can be done?

• What else should be done?

• What 3-MUs are being done? being done?

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Quick Review - 5 Ws and 1 HWHERE

• Where to do it?

• Where is it done?

• Where should it be done?

• Where else can it be done?

• Where else should it be done?

• Where are 3 MUs being done

WHY

• Why does he do it?

• Why do it?

• Why do it there?

• Why do it then

• Why do it that way?

• Are there any 3-MUs in the way of thinking?

HOW

• How to do it?

• How is it done?

• How should it be done?

• Can this method be used in other areas?

• Is there any other way to do it?

• Are there any 3-MUs in the method?

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Quick Review - Innovation, Invention, Kaizen and Standardization• Invention

• The introduction of something new, a new idea, method or device

• Innovation:• If the invention improves some product, process or service for the

public, then that invention transforms into an innovation. • New technological break through or new features that is incorporated into a

product, system and/or methodology to improve its usefulness

• Kaizen• Improve existing system by systematically eliminating non-value added

processes

• Standardization:• Maintaining Status quo

• Maintenance• Activities that are directed to maintaining current technological,

managerial and operating standards

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Quick Review - Innovation, Invention, Kaizen and Standardization

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• Management Maintenance Task:• Establish

• Policies• Rules• Directives• Procedures

• Monitor • They have been

followed• People are able to

follow but do not follow• Introduce

Discipline• People are unable to

follow• Take appropriate

actions• Training• Review and • Revise

Maintenance: By Management

Maintenance: By Workers

Quick Review - Kaizen versus Innovation• But the reality the actual progress achieved through

innovation generally follows the pattern

• Why?: • Once a system is placed as result of innovation

• Deteriorate unless continuing efforts to• Maintain and Improve

• Supported by the Management

Inn

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Kaizen

Kaizen

It lacks the Kaizen strategy go along with it.

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Quick Review - Kaizen versus Innovation• If standardization is just to maintain the status quo

(existing status of affairs)In

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Inn

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Standard

Standard

Inn

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Inn

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Kaizen efforts not only maintain the standards but also take them to new heights

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Quick Review - In the Innovative Society• Economy is cyclic in nature

• Goes Up and Down

• Management talks about Kaizen• When economy is slow

• When economy is good• Companies

• Often invest more resources than necessary to avoid any problems or excuses

• Forget about Kaizen thinking, approach, lessons learned from the past

• But if they mix Innovation with Kaizen• It will help in faster time to market and more reliable product

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Quick Review - Some of the key points

• Management Support• Take a Kaizen approach

• Show small improvements with ROI• ROI – cost savings, improved efficiency, customer satisfaction

• ROI sometimes is not cost savings• Employees moral

• Delighter customer (Internal and external) – Kano Model

• But in long term it will help in improving bottom line results for the company

• Do not get discouraged in trying out Kaizen approach• If you believe in something

• One day someone will recognize your efforts

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Quick Review - Some of the key points

• Team Building challenges• Select right team members from cross functional areas• Right support• Timely support• Changes – you may have to start all over again• Training• Conflict

• Run the meetings• Is an art – get everyone involved – some people are shy

• Team building stages• Forming, Storming, Norming, Performing

• Typical Kaizen team• Multifunctional team

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Quick Review - Some of the key points

• Implementation• As team leader and facilitator, it requires lot more responsibilities

• You have to be • Lot more tolerant

• Respectful

• Better listener

• Know when to stop someone (meeting distractors)

• Discipline members tactfully

• Recognize achievements

• Meeting discussion with executives

• Open and transparent communication

• Upfronts

• Live by example

• Bottom line build your credibility at all levels

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Credibility

• Build your credibility• If you believe in something that may improve the process and is

within your control• Do it – This is your opportunity to show your management

• Most of the time people like smarter people working for them that make them look good

• Once you build your credibility• You will get support – They know that you always come-up with a better

idea, doable and works

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Quality Tools

• I did not cover Quality Tools in this three part presentation• Most of you already know

• 7 New and 7 Old tools

• Statistics, Design of Experiments etc.

• Single Piece Manufacturing, Kanban, Poka-Yoke, 5S, Jidoka,

• Most of them are cover in• Dinner meetings, Clinics

• Refresher Courses, certification exams

• You can apply to your project as applicable

• Caution: be careful to apply diligently otherwise, you may be investing resources in the wrong place• Kaizen approach will allow you to try out these tools and if you apply

them incorrectly, take a different approach

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Kaizen Approach

• If it works great• Standardize the process

• Maintain it,

• Advertise it with achievements

• If it does not work• You still learn

• What you thought could be Good Change – did not yield expected results

• Try a different tool/approach

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Kaizen

• What is this?• This is what Kaizen is all about

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ASQ Section 0701 Case Study 3

• Part 1• Taking Kaizen approach – turned section from money loosing

proposition to money saving proposition

• Invest in our membership to provide better service

• Please plan to register for the Section 0701 Quality Day on Friday November 1, 2013 (The cost is $55 – heavily subsidized)

• Part 2• Cvent – event management program

• Faster registration, shorter lines, better survey responses etc.

• Part 3• On line meeting software

• Web and Audio

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ASQ Section 0701 Case Study 3

• Part 3• On line meeting software

• Web and Audio

• ASQ is a volunteer organization• Sometimes we are busy, tired, traveling and cannot attend Leadership

Meeting(s)

• We improved our meeting attendance by introducing Web/Audio conferencing• Our attendance has significantly grown ranging 75% - 100%

• If you are traveling, you can join from anywhere as long as you have phone lines

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ASQ Section 0701 Case Study 3

• Part 3• Other benefits

• Started on-line courses• For those who cannot attend certification courses during week days due to

some reason

• Where there is no courses available – something is better than nothing

• Urgent issues• Can be discussed without traveling

• Most recently

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Hi Folks,Bob was in a car accident and is home now (he is okay). Students called me on my cell when Bob did not show up in class. I am out in Oklahoma for my Son's graduation from the Army. Fortunately, I was able to log into Genesys and conduct an on-line class with the students at Alcon (40 students).

Thanks to Vinay that he set up a Genesys account and also to the Alcon Students in class as they were able to log into the PC in the auditorium and then online using the Genesys information I emailed them.

What is this?

• This is a Kaizen thinking and Kaizen approach

• What is the ROI in this case• $10 for the instructor log-in for 3 hours

• $10 for auditorium log-in for 3 hours

• Total $20

• 40 Happy students (Kano Model – Delighter) • Course is on-track

• This what Kaizen is all about

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SINGLE PIECE MANUFACTURING500 minutes versus 104 minute example:

500 minutes = 1.2 days (based on 7 hours production hours)

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SMT Reflow AOI

Current State of the Process

Stuffing & Wave

SolderingTest

Inspection, Rework

and Wash

Inspection, Rework

and Wash

Inspection, Rework

and Wash

QA

Inspection, Rework

and Wash

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SMT Reflow AOI

Batch Mode (Island Approach)

Stuffing & Wave

SolderingTest QA

100 100 100 100 100

1 1 1 1 1

100 200 300 400 500

SMT Reflow AOI

Single Piece Continuous Mode

Stuffing & Wave

SolderingTest QA

100 100 100 100 100

1 1 1 1 1

1 2 3 4 5

99

+

Total 104 Minutes

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Advantages

Real time feedbackBetter First Pass YieldShorter processing timeLesser HandlingLesser Handling related damagesQuicker turn around timeLittle/no slack timeLess Manpower/ResourcesLesser storage space

Efficiency improvement

500 minutes versus

104 minutes

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Challenges

Line Balancing

Documentation / Design Review

Tighter up front controls

Real time corrective actions

Prior prepping of partsBetter prepping instructions

Disadvantages

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This is the model used by

WORLD

CLASS COMPANIES

GOYAL’S FORMULAMy Last Name is GoyalI used this formula in three Electronics Manufacturing Service (EMS or Contract Manufacturer) companies and it was well received by the management and customers

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Few Assumptions• Do we live in a perfect world?

• No

• When we talk about ZERO defect • That is a virtual concept • We should target for Zero defect• But some of the variables are out of our controls

• Fishbone diagram: 5M and 1E

• Value:• A process adds value by producing goods or providing a service that a

customer will pay for

• Waste• A process consumes resources and when more resources are

consumed than are necessary to produce the goods or provide the service that the customer actually wants

• Waste reduction is one of effective ways to increase profitability

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Before I joined the company

• Marketing/Sales Quotation process for Testing a products was:• Get the feedback either from Test Engineer or the customer for test

time

• Suppose the test cycle time is 1 minutes• Loading, testing, recording, Unloading and ready to test another unit

• Your rate is $1 per minute ($60 per hour)• How much company could charge to test 60 units?

• $60

• If the testing started at 10:00 am, what time the test engineer/Manager or Director can commit about the expected completion time• 11:00 am

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Goyal’s Formula• 60 boards

• FPY 90% (not always workmanship, it could be bad part, marginal design, and other issues that are not your fault but are your problem now)

• 60 minutes (60 boards @ 1min per board)• you tested all 60 boards but only 54 passed

• To debug each board • 30 minutes• 6 X 30 = 180 minutes

• So total time should be• Total initial test time + debug time = 60 min + 180 min = 240 minutes

• And not 60 minutes

• Cost should be $240 and not $60• You were not only leaving money on the table but also creating

unnecessary Muri (unrealistic expectations) on your employees

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In the table format

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Operation Minutes Total Time

Loading, Testing, Recording and Unloading (60 units)

1 60 minutes

Troubleshoot time (6 units)

30 180 minutes

Total Test Time 240 minutes

Test rate $1 per minutes $240

Start time 10:00 am

Completion time 2:00 pm

Microsoft Excel Worksheet

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GUEST PRESENTERMS. BHAVNA MANTHA

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Thank you Bhavna !!!!

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Questions

• [email protected]

• Presentation slides will be posted on section website within 2-3 days

• Do you want me to hold one more session in November on Kaizen • Case studies

• Examples

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Kaizen Case Study 4 – ASQ 0701

• Having the meeting on 2nd Tuesday of the month• Rain or Shine

• Is this a Kaizen approach• Yes

• People can work around with their schedules• Members and Leadership Committee members

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Kaizen Case Study 4 – Try at work

• If you chair a meeting1. Make it a standing meeting on one fixed day of the month e.g. 1st Friday of every month at 8:00 (or whatever the day and time

convenient for most members)

You team member participation will go up

2. If member cannot participate he or she should delegate to someone who can represent him or her It will further improve team members participation

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