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    Sparsh Arora 9030241432Suryasnata Mohapatra 9030241434Saiyad Ali Marjaie 9030241428

    KAIZENThe Key to JapansCompetitive Success

    By MASAAKI IMAI

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    2

    Agenda

    2. Targets

    3. Waste

    4. Time

    5. Implementation

    1. An Introduction

    6. Commandments

    7. Case Study

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    Be it our working life, our sociallife, or our home life, deserves to

    be constantly improved

    KAIZEN Philosophy

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    KAIZEN- An Introduction

    Masaaki Imai is known asthe developer ofKaizen.

    ('kai') KAI means'change' or 'the action tocorrect'.

    ('zen') ZEN means

    'good'

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    Kaizen is small incremental changes made for

    improving productivity and minimizing waste.

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    Customerorientation

    TQC

    Robot

    ics

    QCc

    ircles

    Su

    ggestionsyste

    m

    A

    utomation

    Disciplineinthe

    workplace

    TPM

    Kamban

    Qualityim

    provement

    JustinTime

    Zerod

    efects

    Small-groupactivit

    ies

    Cooperativelabor

    managem

    entrelations

    Productivityim

    provement

    New-produc

    tdevelopment

    KaiZe

    N

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    2 types of change for improvement

    The 1st involves innovation - applying high costsolutions such as state of the art technology

    The 2nd uses common sense tools, checklists &

    techniques that do not cost money.

    This approach is called kaizen

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    Kaizen Target

    Easy Handling of operations Improve equipment effectiveness Zero loss in minor stops, measurement and

    adjustments, defects and unavoidabledowntimes.

    30% Manufacturing cost reduction

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    Shift Mind Set

    Current Thinking Required Thinking

    WASTETYPESOF

    WASTE

    Correction

    Processing

    Motion

    Waiting

    Inventory

    Transportation

    Over-Production

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    KODAK OPERATING SYSTEM

    CALL ITCALL IT

    TWENTY?TWENTY?

    22 TO BE ON22 TO BE ON

    THE SAFE SIDE!THE SAFE SIDE!

    TENTEN

    PLEASE!PLEASE!

    Over - Production

    Taiichi Ohnos 7 Wastes

    KODAK OPERATING SYSTEM

    Waiting

    KODAK OPERATING SYSTEM

    Transportation

    KODAK OPERATING SYSTEM

    How do you spell that?

    Over -Processing

    KODAK OPERATING SYSTEM

    Inventory

    $$$$ $$$$ $$$$$$

    $$ $$$$$$

    $$

    KODAK OPERATING SYSTEM

    Motion

    KODAK OPERATING SYSTEM

    Defects / Rejects / Re-work

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    VELOCITY FOR COMPETITIVE ADVANTAGE

    StandardizationProcess optimizationElimination of waste

    Evolution in people and technique

    Durable training

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    TIME:TIME: The single best indicatorof competitiveness

    Customer Lead Time / Delivery Time

    Working to reduce or minimize each of these times canmake your company more valuable to both its internaland external customers.

    Set-up or Change-over Time

    Product Development Time

    Manufacturing Cycle Time

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    Shrinking Lead Times

    Order Lead Times Manufacturing Lead Times Delivery Lead Times

    Manufacturing Lead TimesOrder Lead

    TimesDelivery Lead

    Times

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

    Value Added Time (VA)1%

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

    VA1/2 %

    Value AddedActivity (VA)

    Non Value Added

    Activity (NVA)

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    Wheres the Time in Lead Time

    NVA Time95% of Total Lead time

    VA5%

    When we look at attacking the NVA Activities in the Timelineand compare that to the original timeline:

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

    Value Added Time (VA)1%

    This shows a 5X improvement in lead timeGreatJob!!

    Greatest Opportunities are actually here!

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    .1 &Form a teamallocate

    responsibilities

    SevenSevenStepsSteps

    .2 Measurecurrent

    state

    . &3 Analysisimprovemen

    t

    .4 Apply firstimprovement

    .5 Set processwith new

    scenario

    .6 Analysis&

    improvement

    . -7 Set up boardfor

    visualizatio

    &nmonitoring

    CuttingChange overtime

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    PLAN

    DO

    CHECK

    ACT Implementation

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    Kaizen in 5 days

    Conceptual:raining on

    ay 1

    -rojectpecificTraining

    &easurenalyze

    urrent WorkProcess

    ormulaterocessImprovements

    ay 2ay 1

    valuateImprovements

    stablish NewtandardProcess

    perate Usingew StandardProcess

    inalize NewtandardProcess

    resentesults and

    !elebrate

    ay 4ay 1 ay 2 ay 3

    reate andap newprocess

    ay 3ay 1 ay 2 ay 4ay 1 ay 2 ay 3 ay 5ay 4ay 2 ay 3ay 1

    usinessrocessKaizen tandardOperations5S aizenMethodology &oolsTechniques

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    Result

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    Improv

    emen

    t

    Time

    A P

    DC

    A PDC

    Innovate

    Innovate

    Two Primary Ways to Improvement:Breakthrough / Innovation Cycle and

    Kaizen

    Adapted from: Imai, Kaizen

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    Backslide

    What usually happens

    Time

    I

    mprov

    emen

    t

    Backslide

    Backslide

    Could-a-Been

    Actual

    If worked to thenew standards

    Innovate

    Innovate

    Adapted from: Imai, Kaizen

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    Kaizen Prevents Backsliding

    Time

    Improv

    emen

    t

    Kaizen

    New Way Actual

    OldWayActual

    Kaizen

    Kaizen

    Innovate

    Innovate

    Standardize

    Adapted from: Imai, Kaizen

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    Kaizen Tools

    Why - Why analysis

    Error correctionSummary of losses

    Kaizen register Kaizen summary sheet

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    Benefits of Kaizen

    It is a process oriented approach, hence has lasting impact asimprovements are made where faults are identified.

    There is a high level of employee involvement which enhances theirmorale and motivation.

    It helps to improve quality, there by enhancing customer satisfaction.

    It helps to improve productivity resulting in low cost of operation.

    It helps to reduce the rate of accidents thus improving work safety.

    It aids in waste reduction in areas such as inventory, waiting time,transportation and others which in turn aids in better utilization ofspace and resources.

    26

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    Challenges faced by Kaizen

    It requires lot of effort especially by executives at thetop-most level.

    It is a people oriented approach. So employee supportis critical for successful implementation of Kaizen.

    It requires a long term discipline and commitment.

    So everyone should be patient about the results.

    It should be a continuous process or else the expectedresults would not be obtained.

    27

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    11The costumer :The ultimate Judge of quality

    22The eye of the needle struggle to enter the market

    33Supplier relations

    44Changing Corporate culture :Challenge to the west

    (Citizens Against Virtually Everything)

    28

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    Kaizen Commandments Top Twelve

    No interruptions from outside the Event.

    No veto power from outside the team.

    Rank has no privilege.Abandon departmental / silo thinking.

    Finger-pointing has no place.

    Avoid scope creep. Use creativity before capital.

    29

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    Kaizen Commandments Top Twelve Think yes, if instead of no, because

    Get good data, then add experience and instinctto the mix.

    Seek the wisdom of ten rather than the knowledgeof one.

    Keep an open mind. Challenge existing

    paradigms. Challenge everything! Improvements implemented today are better thanplanning to implement in the future.

    30

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    Dont see the happy face?

    Sewing machine

    An old lady employee

    Both hands engaged to lead the narrow band

    Material roll on a stool Production process should stop if somewhere itches!!

    Case

    1

    CURRENT SITUATION

    Sewing machine

    An old lady employee

    Both hands engaged to lead the narrow bandProduction process should stop if somewhere reaches!!

    Happy face

    Hands off to scratch wherever you want!!

    Non-stop Production

    Hands as important resources are free

    + KAIZEN

    AFTER KAIZEN

    31

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    Dont see the wastage?

    Case

    2

    32

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    Results

    33

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    uAffect regulatory severityu

    uForce hasty, inadequate workuuCut cornersu

    uWork against the agency missionu

    uSeek to fault staffu

    Kaizen Does not...Kaizen Does not...

    34

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    References

    Kaizen, Imai

    The Idea Generator (Quick and Easy Kaizen),Bodek

    The Idea Generator (Quick and Easy Kaizen)Workbook, Bodek

    Creating a Lean Culture, David Mann