Brandon.ppt

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Improvement begins with “I”.

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Brandon R. Kho

[email protected] OFFICE: +1-208-885-4410

ontinuous CImprovement

- Arnold H. Glasow

Introduction Quality

“Quality” means those features of products which meet customer needs and thereby provide customer satisfaction

“Quality” means freedom from deficiencies—freedom from errors that require doing work over again (rework) or that result in field failures, customer dissatisfaction, customer claims, and so on

In this sense, the meaning of quality is oriented to costs, and higher quality usually “costs less

Juran's Trilogy is possibly the most simple, complete, and pure representation of managing for Quality ever devised. The trilogy exemplifies the essence of Quality. It completely meets its objective in the most efficient and effective manner possible

JURAN’S TRILOGY

Quality Planning Establish quality goals Identify who the customers

are Determine the needs of the

customers Develop product features that

respond to customer’s needs Develop processes able to

produce the product features Establish process controls;

transfer the plans to the operating forces

Quality Control

Evaluate actual performance

Compare actual performance with quality goals

Act on the difference

Quality Improvement

Prove the need Establish the infrastructure

Identify the improvement projects

Establish project teams Provide the teams with resources, training, and motivation to:

Diagnose the causes Stimulate remedies

Establish controls to hold the gains

Fig : THE JURAN’S TRILOGY

Strength of Juran’s Trilogy The methodology searches a

continuous improvement of quality in every aspects of the organization, because if the implementation of the methodology does not give the desire results it is possible to start all over again

The methodology allows the use different quality tools to cover the steps of Juran’s Trilogy. It allows a better understanding of the relationships of every stage of the company

The methodology is well structured and allows the companies that implement it, an easy understanding and application.

Weakness of Juran’s Trilogy To have quality control it is necessary to have a

trained person with knowledge in statistical processes or train a special person to be in charge of quality

The program is focus in the company process and not in labor force

Analyzing the requirements of the program we found that the companies who apply the program have a complex level of organization

This kind of methodologies show results in a long term; this represents a risk for the company because the implementation of the quality program can be a waste of time, money and resources.

o Japanese wordo means “gradual, orderly and continuous improvement”o does not need any capital investment, but requires time and efforts of every employee in the organization

Kaizen

Overview of tools - Kaizen

Japanese term – “Kai”- meaning continuous

“zen”- meaning improvement

Small scale continuous improvements Incremental steps- addresses single

problem Rapid intense effort lasting 3-5 days

Known as Kaizen Events, Kaizen Blitz Kaizen bursts 5-15 minutes in length DoD Rapid Improvement Event

The Kaizen philosophy assumes that our way of life—be it our working life, our social life, or our home life deserves to be constantly improved.

Maasaki Imai

Two (2) Activities of Kaizen

1. Maintenance involves activities directed at maintaining current technological, managerial and operating standards.

2. Improvement (Kaizen) while efforts are going on for improving the processes, the present activities should continue as per improvements of the current processes.

Kaizen

Kaizen

KAIZEN is different from innovation.

Innovation – aims at dramatic improvement

of the existing processes, whereas,Kaizen – aims at small incremental improvement in the existing processes

Comparison of INNOVATION & KAIZEN

INNOVATION KAIZENCreavitivity AdaptabilityIndividualism Team WorkTechnology People- orientedInformation- Closed

Information-Open

Seeks New Technology

Builds on Existing Technology

Limited Feedback

Comprehensive Feedback

Kaizen

KAIZEN activities in Japan• Finding new ways or improving the ways in which the tasks are currently carried out• Improving working environment• Improving processes• Improving capability of machinery through periodic as well as preventive maintenance• Improving usage of tools and fixtures• Improvement of human resources through training and job rotation• Improving plant layout

Kaizen

Kaizen

Three (3) Basic Principles of KaizenThere are essential three basic principles of KAIZEN.

1.Work place effectiveness

2.Elimination of waste, strain and discrepancy

3.standardization

1.Work place effectiveness Japanese have

developed the 5S tools for addressing the work place effectiveness.

2. Eliminating waste, strain and discrepancy Kaizen is achieved

through application of 5s tools for workplace effectiveness and elimination of three Mus.

3. Standardization Japanese have

developed the 5S tools for addressing the work place effectiveness.

GOALS OF KAIZEN

• implemented not for profit but for quality.• should be measurable through its impact on the customer satisfaction.• process oriented• employees should be encourage to admit when there is a problem• suggestion system is an integral part

Kaizen

Goals of KAIZEN• Customer driven strategy for improvement• Problem – solving tool based on cross-functional team and collaborative approach• Improving the processes in the organization• Collaboration between the cross-functional team, the process owners and the management is essential for success of Kaizen• Quality Circles can become part of Kaizen, a group oriented suggestion system.

Kaizen

KAIZEN BLITZ a quick improvement

methodology Usually completed in

a single week Kaizen – making

small improvement over an extended period.

KAIZEN BLITZ in the traditional sense aimed at creating a

perfect production

line, the goal of Kaizen Blitz is simply “to create a better production line”.

5 S

Seiri – Sorting Seiton – Straighten or Set in order

Seiso – Sweeping, shining or cleanliness

Seikestu – Standardising

Shitsuke – Sustaining the discipline

SortClear out rarely usedItems by Red Tagging

StraightenOrganise and Label aPlace for Everything

ShineClean ItStandardise

Create Rules to Sustainthe first 3 5’S

SustainUse Regular ManagementAudits to Stay Disciplined Eliminate

Waste

5 S’s

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SEI-RI-sortSEI-RI-sortIdentification of materials, equipment and tools data which are necessary or not necessary, discarding and make space for the required one’s.

Identification of materials, equipment and tools data which are necessary or not necessary, discarding and make space for the required one’s.

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SEI-TON = StraightenSEI-TON = Straighten

Once Cleaned and then arrange them in orderly manner.

People should cultivate the habit of return the tools to the place from where it was taken.

Easily accessible Reduces time and confusions Improves Efficiency

Once Cleaned and then arrange them in orderly manner.

People should cultivate the habit of return the tools to the place from where it was taken.

Easily accessible Reduces time and confusions Improves Efficiency

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SEI-SO = ScrubSEI-SO = Scrub

After Clearing & Arranging . Organization should Identify and Eliminate source of Dirt, Dust, (or) Trash

Update Constantly

After Clearing & Arranging . Organization should Identify and Eliminate source of Dirt, Dust, (or) Trash

Update Constantly

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SEI-KE-TSU = SystematizeSEI-KE-TSU = SystematizeGood Working Condition and Personal Hygiene

Clean Person is conscious of his Work Place

Good Sanitary Condition

Good Working Condition and Personal Hygiene

Clean Person is conscious of his Work Place

Good Sanitary Condition

SHI-TSU-KE = StandardizeSHI-TSU-KE = Standardize

Not only Job Related but also Personally it is important. Job Discipline is the habit of Skill Development to do work as per Standards.

Observe Rules & Policies of the Company

Not only Job Related but also Personally it is important. Job Discipline is the habit of Skill Development to do work as per Standards.

Observe Rules & Policies of the Company

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The Seven Deadly Wastes(And How to Tame (And How to Tame

Them)Them)   

7 wastes….7 wastes….

1.      Waste from overproduction2.      Waste of waiting time3.      Transportation waste4.      Processing waste5.      Inventory waste6.      Waste of motion7.      Waste from product defect

1.      Waste from overproduction2.      Waste of waiting time3.      Transportation waste4.      Processing waste5.      Inventory waste6.      Waste of motion7.      Waste from product defect

1. Overproduction due to1. Overproduction due to

· Extra inventory · Extra handling · Extra space · Extra interest charges 

· Extra machinery and equipment 

· Extra inventory · Extra handling · Extra space · Extra interest charges 

· Extra machinery and equipment 

· Extra defects · Extra overhead · Extra people · Extra paperwork 

2. Waiting2. Waiting

Waste from waiting is usually readily identifiable.E.g. Idle workers who have completed the required amount of work or employees who spend much time watching machines but are powerless to prevent problems. These are easy to spot.

(By completing only the amount of work required, the capacity - both speed and volume - of each work station can be monitored. This will result in using only the machinery and personnel required for the minimum amount of time to meet production demands, thereby reducing waiting time)

Waste from waiting is usually readily identifiable.E.g. Idle workers who have completed the required amount of work or employees who spend much time watching machines but are powerless to prevent problems. These are easy to spot.

(By completing only the amount of work required, the capacity - both speed and volume - of each work station can be monitored. This will result in using only the machinery and personnel required for the minimum amount of time to meet production demands, thereby reducing waiting time)

3. Transportation3. Transportation

The transportation and double or triple handling of raw and finished goods are commonly observed wastes in many factories.

Often the poorly conceived layout of the factory floor and storage facilities, which can mean long distance transportation and over-handling of materials.

This situation is aggravated by factors such as temporary storage or frequent changes of storage locations. In order to eliminate transportation waste, improvements must be made in the areas of layout, process coordination, methods of transportation, housekeeping and general organization or the operation.

The transportation and double or triple handling of raw and finished goods are commonly observed wastes in many factories.

Often the poorly conceived layout of the factory floor and storage facilities, which can mean long distance transportation and over-handling of materials.

This situation is aggravated by factors such as temporary storage or frequent changes of storage locations. In order to eliminate transportation waste, improvements must be made in the areas of layout, process coordination, methods of transportation, housekeeping and general organization or the operation.

4. Processing4. Processing

The processing method.

In observing this type of waste, one often finds that maintenance and manufacturability are keys to eliminating it. If fixtures and machinery are well-maintained, they may require less labor on the part of the operator to produce a quality product.

Regular preventative maintenance may also reduce defective pieces produced. When the principles of design for manufacture (DFM) are employed and manufacturability is taken into consideration in product design, processing waste can be reduced or eliminated before production even begins

The processing method.

In observing this type of waste, one often finds that maintenance and manufacturability are keys to eliminating it. If fixtures and machinery are well-maintained, they may require less labor on the part of the operator to produce a quality product.

Regular preventative maintenance may also reduce defective pieces produced. When the principles of design for manufacture (DFM) are employed and manufacturability is taken into consideration in product design, processing waste can be reduced or eliminated before production even begins

5. Inventory5. Inventory

Inventory waste is closely connected with waste from overproduction. That is, the overproduction creates excess inventory which requires a list of extras including handling, space, interest charges, people and paperwork. Because of the often substantial cost associated with extra inventory, rigorous measures should be taken to reduce inventory levels

Inventory waste is closely connected with waste from overproduction. That is, the overproduction creates excess inventory which requires a list of extras including handling, space, interest charges, people and paperwork. Because of the often substantial cost associated with extra inventory, rigorous measures should be taken to reduce inventory levels

6. Motion6. MotionWaste of motion can be defined as whatever time is spent NOT adding value to the product or process:

Movement ≠ Work

This type of waste is most often revealed in the actions of the factory workers. It is clearly evident in searching for tools, pick and place of tools and parts kept out of immediate reach of the work station and especially by the walking done by one operator responsible for several machines. All of these can be eliminated by carefully planned layout and fixture selection

Waste of motion can be defined as whatever time is spent NOT adding value to the product or process:

Movement ≠ Work

This type of waste is most often revealed in the actions of the factory workers. It is clearly evident in searching for tools, pick and place of tools and parts kept out of immediate reach of the work station and especially by the walking done by one operator responsible for several machines. All of these can be eliminated by carefully planned layout and fixture selection

7. Product Defects7. Product Defects

Waste from product defects is not simply those items rejected by quality control before shipment, but actually causes other types of waste throughout the entire manufacturing process.

Waiting time is increased in subsequent processes, increasing costs and lead timesRework may be required to make the part usable, increasing labor costsAdditional labor may be required for disassembly and reassemblyAdditional materials may be needed for replacement partsSorting the defective from acceptable parts requires additional labourScrapping the defective pieces wastes both the materials and the work already added

Waste from product defects is not simply those items rejected by quality control before shipment, but actually causes other types of waste throughout the entire manufacturing process.

Waiting time is increased in subsequent processes, increasing costs and lead timesRework may be required to make the part usable, increasing labor costsAdditional labor may be required for disassembly and reassemblyAdditional materials may be needed for replacement partsSorting the defective from acceptable parts requires additional labourScrapping the defective pieces wastes both the materials and the work already added

BUSINESS PROCESS REENGINEERING

(BPR)

What is BPR? BPR is fundamental rethinking and radical redesign of business processes to achieve dramatic improvements critical contemporary measures of performance such as cost, quality, service and speed.

Dr Michael Hammer.

Reengineering business processes means tossing aside existing process and starting over.

What is Business Process Reengineering or

Redesign?

Business Process Reengineering is defined as;

“the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary

measures of performance such as costs, quality and speed”.(Hammer and Champy, 1993)

***Business process re-engineering is also known as business process redesign, business transformation, or business process change

management.

FundamentalFundamental implies that everything – every assumption, every reason, every activity – is challenged by asking why it should be continued. The implication is nothing should be accepted as scared. Over time, practices that were once required become obsolete and need to be removed.

RadicalDo not try to improve the existing situation, invent(create/design) completely new ways of accomplishing(complete/achieve) work.

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This definition contains four key words:This definition contains four key words:

DramaticDo not use business process redesign to obtain marginal (small slight) improvements, aim at order-of-magnitude improvements (ten times). If the marginal gains – 5 to 10 percent – are the goal, then continuous improvement is a more appropriate path than reengineering.

Process

Focus on the business processes instead of organizational structures.

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This definition contains four key words:This definition contains four key words:

COLLEGE OF BUSINESS ADMINISTRATION