International Expert Workshopon Lean Manufacturing

Balázs Németh, Phd.

The National Localization IndabaDurban

5 June 2014

Background� Hungary (Central Eastern Europe)� 93 000 square km, 10 Million People� Major industries

� Automotive� Chemicals & Pharmaceuticals� Information Technology� Manufacturing (Metal fabrication, pressing etc.)� Electronics (Shrinking, contract manufacturing was

leaving)� Food Industry + Agriculture� Construction Industry� Clothing & Textiles used to be big (not anymore)

2

Clients – Examples for industries

3

4

Competition

5

How to do more with less?

time

Requirements

Common goal: Improving productivity

Productivity =

Output

Input

(Shareholders, managers, employees, customers)

Satisfaction

Commitment

6

Reponses

� TQM� Six Sigma� Automation� BPR� Cost Cutting, Right Sizing� Outsourcing� Lean� TPM� Theory of Contraints

7

8

Historical Overview

Industrialization

Automotive

TQM

xxxxxxxxx xxxxxxx

Baldridge award

ISO 9000,

Six Sigma

BPM

19301955

1965

1980

1987

1992

Artisans

SPC

PDCA

QC Japan

Aerospace

TQC

EFQMBenchmarking

5S

Automotive

ISO/TS 16949

Lean

1999

Walter A.

ShewhartHenry Ford

Frederick W.

Taylor

Kaoru Ishikawa

W. Edwards Deming

Armand W. Feigenbaum

Philip B. CrosbyJoseph M. Juran

Mikel HarryRobert Camp

James HarringtonGenichi Taguchi

Taichi Ohno

Daniel Jones

James Womack

Shigeo Shingo

Hiroyuki Hirano

LEAN - TOYOTA – Sources of competitiveness

9

Toyota Production System

Taichi OhnoShigeo Shingo

„All we doing is looking at the timeline from the moment the customer gives us an order to the point when we collect the cash. And we are reducing that time by removing non value added wastes.” Taichi Ohno

10

11

Lean approach

Order Payment

Material received Product delivered

Material payment

Material ordered

Lead time from order to payment

Lead time from cash to cash

Lead time of transformation system

Lead time of order fulfillment

5 Principles of Lean Management

1. Specify value from the standpoint of the end customer by product family.

2. Identify all the steps in the value stream for each product family, eliminating whenever possible those steps that do not create value.

3. Make the value-creating steps occur in tight sequence so the product will flow smoothly toward the customer.

4. As flow is introduced, let customers pull value from the next upstream activity.

5. Pursue perfection. As value is specified, value streams are identified, wasted steps are removed, and flow and pull are introduced, begin the process again and continue it until a state of perfection is reached in which perfect value is created with no waste.

(Daniel Jones, James Womack)

Value

Value stream

Flow

Pull

Perfection

12

LEAN modules

JITPeople

involvment

JIDOKABuilt inquality

LEAN thinking, culture

KAIZENWaste elimintaion

Visual mgmt. 5SStandardization

TPMSTABLE OPERATION

LSM

13

Application of Lean Practices

StrategicGoals

Values,Principles

LEAN BehaviourPractices

ProcessesStandards

14

15

MISSION

POLICY

Kurt MedlitschF&C Manager

Jim CallusPlant Manager

Carl Friedrich WayandPurchasing Manager

Peter LendvayHuman Resource Manager

Karl-Heinz PreissLogistics Manager

Péter MajorFacility Manager

Csaba MáthéOperation Manager

András HáryTQ Manager

STRATEGY

OBJECTIVES

QUALITY POLICYQUALITY POLICYQUALITY POLICYQUALITY POLICY

• The Philips Szombathely management commits itself to the continuous improvement of the integralquality of our products, services, processes and the entire organization. We strive to satisfy totally ourstakeholders (to exceed customer expectations, create value for shareholders, provide steady andchallenging workplace for people and act as a responsible member of the community) in order to sustaina long-term profitable business.

ENVIRONMENTAL POLICYENVIRONMENTAL POLICYENVIRONMENTAL POLICYENVIRONMENTAL POLICY

The management and employees of Philips Szombathely take responsibility asglobal corporate citizen for continuous reduction of the actual and potential

pollution of the environment and decrease specific energy consumption. Weregularly registrate all actual and potential pollution of the environment, either theair, the ground or the water. We comply with all applicable laws, regulations, andintegrate the guidelines of environmental protection into all applicable processes.

PHILIPS VALUESPHILIPS VALUESPHILIPS VALUESPHILIPS VALUES

• Develop mutual benificial partnership with customers and suppliers, ensuringinvolvement and participation in defining requirements for joint improvement ofproducts and related services.

• Entrepreneurship - encourage innovative behavior and recognise thecontribution of teams and individuals.

• Create an environment and atmosphere where people like to work at PHILIPSSzombathely and contribute to our joint objectives.

• To be a responsible and supportive member of the local and national communitywe operate in.

• Improve capabilities and manage business effectively in a dynamic businessenvironment in order to achieve profitable business growth.

Szombathely, Oct 2001

The strategy of Philips Szombathely is:The strategy of Philips Szombathely is:The strategy of Philips Szombathely is:The strategy of Philips Szombathely is:1. Become Region Europe manufacturing centre for 17”/19” CRT Monitors and LCD1. Become Region Europe manufacturing centre for 17”/19” CRT Monitors and LCD1. Become Region Europe manufacturing centre for 17”/19” CRT Monitors and LCD1. Become Region Europe manufacturing centre for 17”/19” CRT Monitors and LCD2. Szombathely products become the most competitive for the European market2. Szombathely products become the most competitive for the European market2. Szombathely products become the most competitive for the European market2. Szombathely products become the most competitive for the European market3. Exploit supply chain throughput and leadtime advantages of regional manufacturing3. Exploit supply chain throughput and leadtime advantages of regional manufacturing3. Exploit supply chain throughput and leadtime advantages of regional manufacturing3. Exploit supply chain throughput and leadtime advantages of regional manufacturing4. Develop strong business partnership with branded Europe and OEM Region4. Develop strong business partnership with branded Europe and OEM Region4. Develop strong business partnership with branded Europe and OEM Region4. Develop strong business partnership with branded Europe and OEM Region5. Drive productivity and line rate 5. Drive productivity and line rate 5. Drive productivity and line rate 5. Drive productivity and line rate increase to 3000 and beyond on CRT lines andincrease to 3000 and beyond on CRT lines andincrease to 3000 and beyond on CRT lines andincrease to 3000 and beyond on CRT lines and toward 2500 on LCD line per shift output toward 2500 on LCD line per shift output toward 2500 on LCD line per shift output toward 2500 on LCD line per shift output6. Develop and implement world-class HR management structure6. Develop and implement world-class HR management structure6. Develop and implement world-class HR management structure6. Develop and implement world-class HR management structure7. Develop labour flexibility model to support business needs7. Develop labour flexibility model to support business needs7. Develop labour flexibility model to support business needs7. Develop labour flexibility model to support business needs8. Implement Ariba system and LSDB as well as prepare for implementation of SAP and I28. Implement Ariba system and LSDB as well as prepare for implementation of SAP and I28. Implement Ariba system and LSDB as well as prepare for implementation of SAP and I28. Implement Ariba system and LSDB as well as prepare for implementation of SAP and I29. Implement PBE-BEST program9. Implement PBE-BEST program9. Implement PBE-BEST program9. Implement PBE-BEST program

Financial IFO > 8MEUR Cash Flow > 10.5 MEUR NOC Turns > 20.3 COO/Box-Ex. W&D < 7.6 EUR Inventory Turns > 22.2 Profit Margin > 2.2 % Customer CLISP > 95 % CROT =100 % FCR 17” < 1.8% CROV =100 % FCR 19” < n.a. IFIR < 1000 dppm FCR- FPM < 1.5% Process FOR-17” < 2 % FOR-FPM < 2 % FOR-19” < 4 % Environmental objectives: Recycling Rate > 87% Competence ISO & DOR Compliance =100 % QIT Participation Rate > 50% PBE Score > 500 Training > 2.5 % Order Fulfilment Audit on A level

The mission of Philips Monitors Szombathely is to become world classmanufacturer in Europe.

PHILIPS Szombathely Business Policy Szombathely Business Policy Szombathely Business Policy Szombathely Business Policy

MONITOR 2001MONITOR 2001MONITOR 2001MONITOR 2001

Gábor NémethEngineering Manager

Copy No.:

Példa

Business Policy 2001

16

Philips practices

� PBE – Phililps Business Excellence Award� PBE validation audits (Bronze, Silver, Gold)� TQM Steering Group (Criteria Owners)� Business Improvement Programs (5-6 / year)� Quality Improvement Teams (QIT)� Quality Circles� Dashboard (Balanced Scorecard) � PDCA meetings

17

Hoshin Kanri - Policy Deployment

Vision, Mission

Strategy

Anual goals

Strategic Actions

Scorecard• Result to be achieved next year• Way of implementation•Measurement•Tartget value•Deadline

Impementation

Measure, CheckEvaluation

Gap AnalysisBenchmarking

tény

Present

Future

18

Herend Porcelain Manufactory Ltd.

� Customer Surveys� Continuous education � Own artisans school � International Partners, Close to the customer

Integrated Quality Management System� Problem solving � SPC� Employee ownership program� Employee Satisfaction Survey

Lean implementation program

1.0 Lean Philosophy and Culture

2.0 Lean Strategy and Vision (Future Value Stream)

4.0 Create Basic Stability – 4M

5.0 Transformation process - Gemba Kaizen Actions

3.0 Lean infrastructure (organization)

5.2 ContinuousFlow

5.2 ContinuousFlow

5.4 JIDOKA 0 deffects

5.4 JIDOKA 0 deffects

5.3 Pull System5.3 Pull System

5.1 LayoutOptimization

5.1 LayoutOptimization

19

Lean implementation steps� Gain Top Management commitment � Introduce and train the Lean philosophy and methods� Case for Change� Prepare Lean implementation program� Prepare the organization for Lean implementation (OD program)� Build strong foundation (Create Basic Stability, 5S, standard work,

visual control) � Prepare Current State Map of the Value Streams� Identify improvement points and opportunities (Bottlenecks) � Set up Kaizen System, involve and empower people� Proceed step by step (pilot project, Kaizen workshops) � Follow the 5 Lean principles (while improving the pilot areas)! � Continuously improve the System � Involve the Suppliers

20

Lean Assessment, Value Stream Mapping

LEAN AUDIT category results

3

3

3

3

33

3

3

0,56

2,14

1,94

2,13

1,20

2,702,43

2,70

2,50

3

0,00

1,00

2,00

3,00

4,00Pull system, continuous flow

Production - Effectiveness

Visual Control

Standard work

Disciline, TransparencyPDCA, corrective actions,

improvement

Flexible, motivated workforce

0 deffects, Built in Quality

Management support,conditions

Actual score Goal 21

Value Stream Analysis

1. Activity

2. Activity

3. Activity

CustomerSupplier

Value Addingpart

Non-ValueAdding part

Value adding time

Total time

1. Eliminate

2. Reduce3. Change

Value AddingMuda IMuda II

= 1-10-20% ??

Muda II Muda IVA

22

Current Value Stream Map

23

KAI ZEN

� Continuous improvement� Small frequent improvement by the

involvement of everyone. � Low cost (no investment)� Change of method � Perfection of the existing (standards) ways of

working� Long term process

Change + Better

24

SDCA and PDCA cycle

A S

C D

D C

P A

Maintenance(Daily work)

Improvement(KAIZEN)

25

• Defining expectations

• Comparing base

• Operation, process controlling

• Maintaining the achieved results

• Reproduceability

Time

Per

form

ance

„standard wedge“

P D

A C

Role of standards

26

� The Problem is a „Gap”� Deviation between the Ideal (Desired) and

Actual situation

� Quantify the Gap

A

I

Problem

27

Continuous improvement

6. Standardizesolution

7. Reflect on process and next problem

Analyze thesituatution

Define the problem

2. Collect andanalyze data

3. Analyzecauses

Implement solution

5. Evaluateresults

Senseproblem

1. Select theme

4. Planand…

Level ofExperience

Level ofThought

data 1data 2data 3

Reactive Improvement

Proactive Improvement

Process Control

(Shoji Shiba VW modell)

28

Recognition of Kaizen opportunities in the work environment

Muda

Waste

Muri

OverburdenStrain

Illogical

Mura

Irregularity Variability

29

30

5W2H –Understanding the problem

� Who?� What?� When?� Where?� How?� How Many

• Why?

Root Cause Analysis

5 Why - method

Cross Functional Problems

Functional Problems

Problem Root Cause AnalysisCountermeasures

31

Elements of effective Kaizen mechanism

Goa

ls, e

xpec

tatio

ns, S

tand

ards

Identify theproblem

Findingsolution

Problemanalysis

ImplementationPDCA

EvaluatingThe results

Problem centric„good sheperd” approach

Data collectionProblem catalogueFailure cardsBrain storming

Value Stream MappingKaizen workshop, 7 QC tools5 Why? 7 MUDA, 3MU, 4M..Structured problem solving

Sta

ndar

ds,p

roce

sses

, pra

ctic

e

Lean, Kaizen knowledge, methods, coordination

Empowermentdecisions, resources

Lean KPIsSPS AuditLayered Audit

Kaizen diaryMonitoring

Accountability, Recognition

32

Kaizen workshop - Agenda

33

Brush Transformation

34

Layout Transformation

35

5S implementation in Assembly area

Blocked material

Finnished goodsInventory

WIP inventory

Cleaning devices

WIP inventory

Blocked material

Inspection area

Finnished goods

36

5S implementation, waste elimination

37

Kaizen Workshop

idıÍV 2F

EgyD D

Egy

enge

t

ívez

For

rasz

t

Kié

get

Elő

nyom

at

Lera

k

idıÍV 2F

Elő

EgyD

Egy

enge

t

& E

lőké

szít

ívez

&m

ozg

For

rasz

t

Elő

nyom

at

& M

ozga

t

Before Kaizen After Kaizen

38

Kaizen workshop

Before KAIZEN After KAIZEN

Result: 50% area reduction, one piece flow, 60% inventory reduction, FIFO

39

40

Tevékenység Probléma Megtett akciók Eredmények

Kaizen elıtt Kaizen után

Dátum

ST 70Torziós rúd előkészítése

Rossz helyen van az anyag, az operátor nem éri el.

Csúszdás anyagbetöltés kialakítása, tároló áthelyezése

Kevesebbet kell mozogni az operátornak, kívülről FIFO rendszerben tölthető a sor

41

Operation Problem Actions Results

Before Kaizen After Kaizen

Date: 17.11.2010.

Safety issuesProducts are Not stored properly

Fast moving products are stored on „A” level on 1 palette

Storage system

Easy picking, lower risk of injury

42

Operation Problem Actions Results

Before Kaizen After Kaizen

Date: 05.10.2010.

Stair profile making

New „Kanban” trolleys have been introduced, min max levels indicated (visual control)

Reduced transportation, Moving time is 6 sec, 5 m

Stair profiles stored on pallets, moved with forklift (1,5 min moving time, 38 m)

maximum

minimum

Stair profil supermarket, pull system

OEE based improvements

Improvement Steps

Identify Waste

Quantify Waste

ObjectiveIncrease Machine availability by reducing machine waste through

collective problem solving.

ObjectiveIncrease Machine availability by reducing machine waste through

collective problem solving.

Identify gap betweeen actual and optimal operating time

Identify major source of waste on areas of:

Avilability, Performance and Quality

Identify Causes of

waste

Determine Countemeasur

esImplement Monitor

Results

43

Pareto Analysis –Frequency of failure types

Pareto for failure frequency

14

9

76

4

2 2 2 2 2 2 2

0

2

4

6

8

10

12

14

16

Tool exc

hange

rSeiz

ed do

or

Y axis

exch

ange

Pistol

(air)

exc

hang

e

Surfa

ce fa

ilure

on b

olste

r

Rotor e

xcha

nge

PLC fa

ilure

Hidrauli

c chu

ckOil l

eakin

gNC co

ntrol

Seized

chuc

kLa

mp

Failure type

Fre

quen

cy

44

45

Area Problem Suggestion Expcected result

Before Kaizen After Kaizen

Date: 11.18.2010. Turbomill

Tool Exchanger

Have spare part on hand at the machine to enable quick fixing

Failure, breakdown

Reduced down time

46

Operation Problem Suggestion Expected Result

Before Kaizen After Kaizen

Date: 11.18.2010. Turbomill

Machine Body Apply protection plate, regular cleaning, Quick fastener for faster cleaning

Seized Door, Waiting for Maintenance to clean

Reduced Down Time, Operator can fix the problem

Steps of SMED

1. Observe the current c/o process.

2. List all operations.

3. Measure the time for each operation.

4. Value-added analysis of activities (VA, NVA)

5. Eliminate unnecessary activities

6. Separate internal and external times

7. Prepare a current SMED diagram.

8. Transform internal activities to external time

9. Reduce the internal times

10. Reduce the external times

11. Prepare the improved SMED diagram.

12. Try out the new process and evaluate the proces s

13. Standardize the new process, prepare a checklis ttim

e

SMED SMED SMED SMED diagramdiagramdiagramdiagramExternal External External External ----InternalInternalInternalInternal

PresentPresentPresentPresent ImprovedImprovedImprovedImproved

Reduced timeReduced timeReduced timeReduced time47

Standard Operation Sheet

MINŐSÉG ELL.QUALITY CHECK

BIZTONSÁGSAFETY

ERGONÓMIAERGO

KRITIKUSCRITICAL

SORONLÉVŐ KÉSZLETIN PROCESS STOCK

MENNYISÉGNO.

OPERATOR

KÉZIHANDWORK

GÉPIMACHINE

MOZGÁSWALKING

sec 23,41 0,47sec

FT/ 2-os munkahely GYAKORISÁGFREQ

IDŐSZÜKSÉGTIME

Készítette Prepared by: Gyártómérnök

Csoportvezet ő T/L Műszakvezet ő S/L

Minőségbiztosítás

Munkabiztonság

ÜTEMIDŐTAKT TIME

23,88TELJES CIKLUSIDŐTOTAL CYCLE TIME

VÁRAKOZÁS A CIKLUSIDŐN BELÜLWAIT w/in CYCLE TIME

23,88KÉZI+MOZGÁSI IDŐKHANDWORK + WALK TIME

ÖSSZESÍTÉSSUB TOTALS

PPE lap szerint

BIZTONSÁGI KÖVETELMÉNYEK SAFETY REQUIREMENTS

Aláírások Signatures

AKTUÁLIS ÜTEMIDŐACTUAL TAKT TIME

JÓVÁHAGYÁS CONTROL BLOCK FELÜLVIZSG. DÁT. REV. DATE: 2010. jan.. 22.

CIKLUSONKÉNTI ALKATRÉSZEK SZÁMAPARTS PER CYCLE

12,50

6 Éltartam visszaírása.

7

1,00

4Szerszámcsere utáni mérés8

0,07

0,07

4

5 A daru kezelése szerszámcsere után.

3

Szerszámcsere.

EGYSÉGES MŰVELETI LAP - S TANDARD OPERATION SHEET

MUNKAELEM IDEJEELEMENT TIME

A gép munkaterének tisztítása.

SO

RS

Z.

#

0,03

2

1

Motor / Főtengely

0,03

4,00

ESETI FELADATOK INCIDENTAL WORK

0,03

0,07

0,20

MUNKAFOLYAMAT ÁBRAWORK FLOW DIAGRAM

MŰVELET NEVE, SZÁMAOPERATION NAME / #

Szerszámcsere előkészítése a kezelőpulton.

Szerszámcsere utáni gépindítás.

Szerszámcsere Heller 2/1 Szerszámcsere

0,10

MUNKAELEMEK JOB ELEMENTS

TERÜLET/CSOPORT:GROUP/TEAM

FOLYAMAT NEVE:Minden TipusPROCESS NAME

4

1

2

3

S16

0B

73S

276

S16

3

Lang Attila

1,00

0,01

A daru előkészítése a szerszámcseréhez.

1,00

MŰ-SZAK

Shift

MEL HELYE JES LOCATION:

S16

1S

159

S16

2

AC

1

5

6

4

7

Darú

TPM

Ken

ésH

idra

ulik

a

Kezelôpult

2

3

4

8

48

49

Standard Work Combination SheetMunka-kombinációs lap Termékazonosító Projektteam: Db/műszak kézi művelet

Kaizen terület /* téma Terület Operátor gépi mű

Heller 2/1 Terméknév Taktidő:

mozgás

No. Kézi Gépi Mozgás

1 60

2 90

3 30

4 20

5 140

6 80

7 50

8 20

9 10

10 55

11 15

12 70

13 75

14 55

15 75

16 25

17 10

18 40

19 60

20 10

21 70

22 30

23 35

24 15

25 10 10

26 90

27 15

28 15

Összesen 575 90 10 30 60 90 120 150 180 210 240 270 300 330 360 390 420 450 480 510 540 570 600 630 660 690 720 750 780 810 840 870 900 930 960 990 1020 1050 1080 1110 1140 1170 1200 1230 1260 1290 1320 1350 1380 1410 1440

Függeszték daru eltávolítása a gépb ől

Külső mérőeszközhöz megy

etalont ellen őriz

Etalon ellen őrzése bent

Első darab ellen őrzés bent

Darabot ellen őriz

Darabot visszavisz

Ajtó zárás vezérl ő nyomkodás

Külső vezérlő indítás

Tárcsát kocsira emel

Függeszték átrakása a másik tárcsára

Kapcsolódó felületek tisztítása

Új tárcsa beemelése a gépbe

Első darabra vár

Első darabot mér

Elment géprongyért

Munkateret tisztít

Új tárcsa rögzítése

Takarítás

Daru ellen őrzés napló kitöltés

Kocsit betol

Darut leereszt függesztéket felrak

Sapka

e

Függeszték felrakása a tárcsára

Tárcsa rögzítést old

Művelet

Gép kiáll végpontra

Gépet szerszámcsere helyzetbe hoz

Vezérlőt nyomkod

(SEC)

Before 2010.04.15.

After 2010.04.22.

25 min

11 min

5050

Task Problem Action Result

Before Kaizen After Kaizen

Date: 16 June 2012

Tool Change over

Place only for two tools, used and new marked with colors, smaller trolley

Difficult to store and handle

tools, ease to mix up

Less movement, no

mix up

Kaizen Workshop success factors � Proper Kaizen action preparation (data collection tools) � The definition of Kaizen workshop area (manageable, measurable and

visible)� Definition of Kaizen themes (relevant, motivating)� Definition of Kaizen goals quantifiable available) � Selection of team members (complementary to each other and

knowing the knowledge and methodology) � Go to the gemba, identification of development opportunities (Gemba

Kaizen, 3MU, 4M, PQCDSM) � Keep deadlines of actions and schedule (Kaizen log)� Management support, ensuring the conditions and resources

(maintenance, equipment, overtime, the availability of space) � Action (fast, efficient, PDCA)� Monitoring (the monitoring results, a clear assignment of

responsibilities)� Communication and education

51

Integrating Kaizen into daily work

� Plan kaizen activities of into daily work and give time to do it

� Make the Kaizen become part of everyday work

� Ensure implementation of the Kaizen necessary powers and resources

� Continually educate the workers and accompanied back to the Kaizen results

52

Preconditions of successful Kaizen activity

• Top management support

• Kaizen thinking, culture

• Chance to change things

• Available resources

• Interested and motivated people

• Feedback

53

54

Maintaining momentum

• Commited participation of the management „Actions speak louder, then words”

• Employee involvement

• Keep high level of motivation. Gain the people. Answering: „What is in it for me?” question

• Establish and continuously improve standards

• Education Kaizen

Further Information

Kvalikon Consulting Ltd.

Budapest, HU-1125 Istenhegyi út 63/B

Telephone: (+36-1) 201 12 35, 489 0003

E-mail: nemeth.balazs@kvalikon.hu

Web: www.kvalikon.hu

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