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Kaizen Practices @ ALJ Eng. Nazeer Gari Director Quality Assurance & Kaizen Abdul Latif Jameel – Motors 16 December 2015

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Agenda

1.Abdul Latif Jameel Overview

2.Kaizen

3.Toyota Global Content

4.Practice & Implementations

Abdul Latif Jameel Overview

Ownership - Private family company

Founded - 1945

Headquarters - Corporate: Jeddah, Saudi Arabia - International: Dubai, United Arab Emirates

Operations - Operations in 31 countries across five continents: - MENAT (Middle East, North Africa & Turkey) - Europe - Asia Pacific - Sub-Saharan Africa - Latin America

Employees - 16,500+


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Abdul Latif Jameel Business Sectors


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Advertising & Media

Advertising

Agency

Outdoor Media

Energy & Environmental

Services

Renewable Energy

Energy Efficiency

Environmental

Services

Land & Real Estate

Developer of

Integrated

Residential Projects

Commercial

Property

Investments

Joint venture with

Financial Services

Automotive

Financing

Real Estate

Financing

Consumer Goods

Financing

Consumer Products

Distributor

Engineering & Manufacturing

Automotive

Components

Aftermarket Parts

Automotive

Accessories

Transportation

Distributorships

(New Vehicles)

Dealerships

(New Vehicles)

Pre-Owned

Vehicles

Commercial

Vehicles

Industrial

Equipment

Logistics

Transportation


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Transportation Distributorships & Dealerships

United Kingdom

Dealerships

- HQ: Wolverhampton

- Operating since: 2006

- ALJ Branches: 2

Monaco

Dealerships

- HQ: Monaco


- ALJ Branches: 1

Morocco

Distributors

- HQ: Casablanca


- ALJ Branches: 11

- Dealers: 16

- Total Network: 27

Algeria

Distributors

- HQ: Algiers


- ALJ Branches: 7

- Dealers: 53

- Total Network: 60

Libya

Distributor

- HQ: Tripoli


- ALJ Branches: 1

- Dealers: 2

- Total Network: 3

Egypt

Distributors

- HQ: Cairo


- ALJ Branches: 7

- Dealers: 25

- Total Network: 32

Germany

Dealerships

- HQ: Nuremberg


- ALJ Branches: 3

Turkey

Distributor

- HQ: Istanbul


- ALJ Branches: 2

- Dealers: 57

- Total Network: 59

Saudi Arabia

Distributors

- HQ: Jeddah


- ALJ Branches: 199

- Wholesalers: 232

- Total Network: 431

Japan

Dealership

- HQ: Tokyo


- ALJ Branches: 1

China

Dealerships

- HQ: Chengdu


- ALJ Branches: 11 2 3

1

3

59

32

431

11 1


7

27

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What is Kaizen?

The Origin of Kaizen

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改(KAI) + 善(ZEN) To modify, to change Think, make good, make better

Japanese

What is KAIZEN?

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The Japanese word “Kaizen” means

continuous improvement.

Waste Productivity Quality GDI Profit

+ + = + Lead Time

+

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Sales Price = Cost + Profit

Profit

Cost

Sales

Price

Cost

Profit

(Monopoly)

Traditional Formula Toyota Formula

Selling Price is decided by the market

Profit

Cost

Profit

Cost

We need to reduce the cost price

Sales

Price

Profit = Sales Price - Cost

How Can You Generate More Profits?

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Cost

Current capacity = Operation + waste

- Eliminating MUDA (waste) Costs/Time -

7 Kinds of MUDA (waste) 1) Overproduction

2) Waiting

3) Transportation

4) Over Processing/Quality

5) Inventory/Stock

6) Motion (Persons' movement) 7) Correction/Rework

7 Types of Muda (Waste)

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The Pizza Business

Imagine you have a small Pizza shop!!!


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1) Over-Production


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1) Over-Production

Muda of stock resulting in…

Over-Production will lead to other Muda!


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2) Waiting


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3) Conveying/Transportation


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4) Over Processing/Over Quality

Pizza


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5) Inventory/Stock

Pizza

Pizza

Pizza

Pizza Pizza Pizza

Pizza

Pizza

Pizza

Pizza Pizza

Pizza

Pizza

Pizza Pizza


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6) Motion/Persons' Movement


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7) Correction


TPS

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Process 3 Process 1

1 2 3 4 5

Lead Time Reduction

Before TPS

After TPS

Process 2 Process 4 Process 5 Wasted

Time

Eliminate Wasted Time

TOYOTA Production System (TPS)

TPS aims to eliminate MUDA (waste) occurrence in the process or in between the processes.

Wasted

Time

Long Lead Time

Cultivating Kaizen

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Competitors

Difference between

Companies with Kaizen &

their Competitors

Bu

sin

ess

O

pe

ratio

n

With

Kaizen

Cultivate

KAIZEN

Time


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Toyota Global Content

Toyota Global Contents

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Long-term prosperity and growth as an organization

TOYOTA WAY

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TOYOTA WAY ① Toyota Way（TW）

② Toyota Business Practices（TBP）

④ On the Job Development（OJD)

③ Hoshin Kanri（HK）

Toyota Way (TW)

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Continuous

Improvement

Challenge

Genchi Genbutsu

Kaizen.

Respect for

People

Respect.

Teamwork

TOYOTA Business Practices (TBP)

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Evaluat

e

1. Clarify the Problem

2. Break Down the Problem

3. Set a Target

4. Analyze the Root Cause

5. Develop Countermeasures

6. See Countermeasures

Through

7. Evaluate Both Results

and Processes

8. Standardize Successful

Processes

Concrete Actions & Processes

Customer First

Always Confirm the

Purpose of Your Work

Ownership and

Responsibility

Visualization (MIERUKA)

Judgment Based on Facts

Think and Act Persistently

Speedy Action in a Timely

Manner

Follow Each Process with

Sincerity & Commitment

Thorough Communication

Involve All Stakeholders

Drive & Dedication

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TBP

Toyota Way Values

Actions

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What does “Problem” mean to you?

Definition of “Problem”

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Ideal

Situation

Current

Situation

Gap = Problem

Hoshin Kanri (HK)

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Ve

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lign

me

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Horizontal Coordination

Company Level (Annual Policies)

Division Level

Department Level

Individual Level

Group/BU Level

Ideal State

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Nemawashi

On the Job Development (OJD)

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Mutual Trust & Respect Mutual Trust & Respect

Develop team members through “practice of daily work”

What?

Develop human resources who can self-reliantly

put TOYOTA WAY into practice

Why?

Motivation

How is The Toyota Way Different?

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TOYOTA WAY PRACTICE OTHER PRACTICES

People

Focused


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Incremental &

Continuous

Breakthroughs

and Reversions


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By the

People

To the

People

We Embed TOYOTA WAY Culture and Mindset at ALJ

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Practice and Implementations

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We Embed TOYOTA WAY Culture and Mindset at ALJ

To

yo

ta B

usin

ess P

racti

ces

(Pro

ble

m S

olv

ing

)

Ho

sh

in K

an

ri

On

th

e J

ob

De

ve

lop

me

nt

Ka

izen

Id

ea B

an

k

Qu

ality

Co

ntr

ol

Cir

cle

5S

Executive Training Camp

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(2012) On the Job

Development Practices

(2010) Toyota Global Content

Workshop

(2015) Competing to Achieve

Kaizen Flag

(2008 - Onwards) Hoshin Kanri Practice

(2011) Toyota

Business Practices

Hoshin Board Sample

Toyota Business Practices Sample

Quality Control Circle Sample

Get Fit

Kaizen Marathon and Kaizen Flag

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• 1,500+ Kaizen Projects

enrolled

• 3,600+ associates were

trained (TBP & QCC)

TBP OJD QCC

Kaizen

Marathon

Kaizen

Flag

Hosh

in M

onito

ring

Via

HA

S

National Kaizen Marathon

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Kaizen Idea Bank - KIB

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• 10,000+ Idea • 3,500+

Contributors • 25% Implementation

5S (Sort, Streamline, Shine, Standardize, Sustain)

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The Challenge of Personal Mastery and Efficiency

How has The Toyota Way Helped ALJ?

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Improved Guest Delight

Other Improvements:

Market Share Gains

Increased Associate

Engagement

Reduced OPEX

100%

90%

80%

70%

60%

50%

2010 2015

GDI

Thank you

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