report on japan visit nov 1998

FOURTH INTERNATIONAL 20 KEYS CONFERENCE

AND STUDY MISSION

NOVEMBER 1998

20 Keys20 Keys

Contents

Page

1. EXECUTIVE SUMMARY

1.1. Introduction and objectives1.2. Summary of companies visited1.3. Summary of reasons for, approach to and results of the 20

Keys Programme implementation 1.4. Summary of lessons learned

2. COMPANIES VISITED

2.1. Seiko, Morioka2.2. Konica2.3. Sanyo Electric, Household Appliances2.4. Kosmec2.5. Sanyo Electric, Refrigeration2.6. Nichiro2.7. Seiko, Singapore

3. THE 4TH INTERNATIONAL PPORF CONFERENCE PROCEEDINGS

4. JAPAN STUDY MISSION DELEGATES

5. SUGGESTIONS FOR THE EUROPEAN INTERNATIONAL 20 KEYS CONFERENCE AND STUDY MISSION

ANNEXURE : SUMMARY OF THE 20 Keys

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1. Executive Summary

1.1 INTRODUCTION AND OBJECTIVES

1.1.1 ODI (Organisation Development International) organised an industrial study mission

to Japan and Singapore. The main objective was to attend the Fourth International

20 Keys Conference as well as to visit several companies in diverse industry

sectors which have implemented the 20 Keys Programme.

1.1.2 The tour started on Friday, 6 November 1998 and ended on Sunday, 15 November

1998. The group consisted of 58 people from 32 different companies and included

delegates from Germany, the UK, Switzerland, Moldova and South Africa.

1.1.3 Seven Japanese companies and one Singapore company in six different industries

were visited. The plant tours focussed on the 20 Keys Programme implementation

and the results achieved.

1.1.4 Approximately 700 people attended the Fourth International 20 Keys Conference in

Tokyo, Japan. 24 presentations on the implementation of the 20 Keys Programme

were made. One each from Singapore and Malaysia, three from South Africa, two

from Germany, one from Mexico and the remainder from Japan. Keynote speakers

included Prof. Iowa Kobayashi, the creator of the 20 Keys Programme (or PPORF,

Practical Programme of Revolution in Factories) and Mr Barry Venter, Managing

Director of ODI in South Africa.

1.1.5 The study tour was a great success, an enriching experience with a wonderful group

of delegates, ODI thanks them all sincerely.

2

1.2 SUMMARY OF COMPANIES VISITED

Profile of companies visited 20 Keys resultsCompany Type of

BusinessEmplo=

yeesCapital

employed

Turnover Period in 20 Keys

Opening score

Present Score

Productivity improvement

Quality defect rate

Work in progress

Seiko Morioka

Watches 900 ¥1 bn ¥23 bn 8 years 1,9 4,0 Trebled Over 95% reduced

Reduced by over 80%

Konica Films 517 ¥60 bn ¥15 bn 3 years 1,7 3,0 2,5 times Over 90% reduced

Reduced by over 35%

Sanyo Electric

Household appliances

935 ¥173 bn ¥50 bill 18 months

1,6 3,1 Improved by 84% From 9,5 to 2,1% Reduced by 76%

Kosmec Precision equipment

100 ¥60 mil ¥2,5bn 4 years 1,7 3,2 Improved by 53% Over 80% reduced

Sanyo Cooling products for

shops

700 ¥56 bn ¥51 bn 3 years 1,55 3,4 86% Reduced by 76%

Nichiro Fish products

400 ¥170 bn 6 years 1,65 3,6 Doubled Reduced by 82% Reduced by 78%

Seiko Singapore

Wrist watches

860 S$35 mil S$192 mil 7 years 1,9 3,9 From 100 to 408 PCS/MAN/Year,

300%

18205 to 3600 ppm, reduced by

over 80%

Reduced by over 80%

3

1.3 SUMMARY OF REASONS FOR, APPROACH TO AND RESULTS OF THE 20 KEYS PROGRAMME IMPLEMENTATION

Companies visited as well as those that made presentations at the conference varied

considerably in terms of industry; size; technology; and period of implementation of the

20 Keys. Some companies experienced immediate results and some sustained

improvement for seven years. All cases provided valuable learning points. The plant

visits and conference presentations confirmed the successful application of the 20

Keys (or PPORF, Practical Programme of Revolution in Factories) in a wide variety of

industries in seven countries. This report serves as a reminder of what was observed

by several people on the study tour.

Reasons for the introduction of the 20 Keys Programme can be summarised as

follows:

Almost all of the companies were experiencing increased pressure on cost and

profit. The 20 Keys Programme was introduced to:

"survive"

increase productivity, quality and delivery performance

reduce costs

become more flexible and adaptable to changing market conditions

revolutionise the delivery system

make more effective improvements

meet customer demands, and

provide focus for improvement efforts.

Although cost reduction was mentioned as an objective, reduction of labour was

never mentioned.

Several programmes, such as Quality Circles, Policy Deployment, Kaizen, TQM,

TPM, etc., were tried but it was found that expected results did not materialise.

The 20 Keys Programme provided a holistic approach with synergistic effect and

real results.

The 20 Keys Programme can be understood by everybody in the organisation,

from top to bottom, even by the shopfloor workers.

4

Approaches towards the 20 Keys Programme implementation can be summarised as

follows:

In some companies all 20 Keys were implemented at the same time, both in

direct and indirect divisions, while others started with a few selected Keys in one

area and thereafter incorporated all the Keys.

In almost all instances the proposed implementation process of the 20 Keys

programme was followed, in some instances "rigidly, and with meticulous

attention".

4S/5S or Key 1, Cleaning and Organising, is the best starting point because

everybody can see and experience immediate improvement.

In all instances all members of management have formal responsibilities

regarding the 20 Keys Programme.

In bigger companies project management is a full time responsibility.

The 20 Keys Programme is seen as long-term. Although quick results are

achieved, the focus remains on long-term sustainable competitiveness as well as

productivity improvement and on delivering outputs faster, cheaper and better.

Benchmarking of the 20 Keys is done at least once a year.

Extensive use of multilevel meetings was evident. Kick-off was usually done

about one year after introduction through a multilevel meeting and progress

reported at the end-of-year multilevel meeting.

Visual management is used extensively. The quality of the action plans is

outstanding and visual management is displayed throughout the plants visited.

Action plans are developed in many companies at the second tier supervisory

management level. The benefit of this is that higher level intellect is applied to

action planning in less action planning “units”.

5

In some companies Small Group Activities (and green areas) were used to

implement the 20 Keys Programme.

Key leaders are used to implement the 20 Keys, assist or do the benchmarking

(assessment) and take responsibility to implement a specific Key in a specific

department or section.

Results achieved through implementation of the 20 Keys Programme can be

summarised as follows:

Impressive results were presented on performance indicators such as

productivity, efficiency, work-in-process reduction and reduction in defect rates

(refer to summary and detailed results of plants visited).

It was evident that the companies were driven by market demand and changes

in consumer spending and reacted accordingly by improving productivity,

reducing costs, and improving adaptability

Some results of companies were not shared with the tour group. It could be that

the Japanese are cautious because they “see the world as their competition”.

Very evident was the mixture of old and new machines and equipment

technology and therefore a lot of emphasis on Key 9 (Maintaining Machines and

Equipment). Equipment and machines are maintained, updated and customised

to be "better than new technology".

The general quality of communication as well as people commitment has

improved in all the companies visited and it also provided a common language

between plants and companies. Improvement in teamwork was mentioned

several times.

The 20 Keys Programme played a significant role in achieving ISO certification. It

also works synergistically with and contributes to safety.

6

1.4 SUMMARY OF LESSONS LEARNED

(These remarks were made by delegates at the end of the tour)

Role of leadership in implementing the 20 Keys

“The 20 Keys have to come from top management, who have to take ownership”.

“The 20 Keys have to be a top-down and a bottom-up approach”.

“The 20 Keys Programme has to focus on the overall objectives and goals of the

company”.

“The commitment of the Japanese people was outstanding”

“One needs to have full buy-in and participation in order for 20 Keys to work”.

Long-term and holistic approach

“In order to succeed, a long-term mindset has to be developed”.

“It is not a quick-fix solution”.

“The 20 Keys Programme is a long-term approach. If you persevere long

enough, you will reap the benefits”.

“You have to live the 20 Keys. It is a systematic approach to best practices”.

“It is an extremely systematic way of how things are done”.

Investing in people

“Investment has to be made in people development”.

“A lot of enthusiasm was evident and employees communicated excitedly about

how they implemented the 20 Keys”.

“More emphasis must be placed on effort rather than on throwing more money at

it”.

“It is a team effort”.

“The mindset of the people needs to be altered in order to facilitate

implementation of the 20 Keys” (which incidentally is the focus of phase 1

implementation).

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Additional benefits gained from implementing the 20 Keys Programme

“Certain companies achieved ISO 9001 and ISO 14000 certification through the

20 Keys”.

“The 20 Keys provide a common language for people to communicate”.

“The 20 Keys turn over every stone and there is no place to hide”.

General observations

“The gap between the average UK company and Japanese companies visited

has narrowed significantly over the past few years”.

“Learning experiences which were shared whilst travelling between sites after

the visits on the bus – everybody gained from this interaction”.

“The 20 Keys Programme works in different and a wide variety of industries”.

“If you use visual management, it has to be something worthwhile that adds

value”.

“Do not try to window-dress. Do the real thing”.

“Apply some of the Keys, not necessarily all 20 Keys at once”.

8

2. Companies Visited

2.1 SEIKO, MORIOKO

2.1.1 Background

Founded in 1970 and employ 900 people. Produce almost 50% of all Seiko watches in

Japan. Annual sales total about ¥23 Billion. Produce about 4 million wristwatches per

month.

Seiko Morioka’s motto is “harmony with people, technology and nature”. Their philosophy

is "quality first". Their ultimate desire is making a system in the spirit of "People's

welfare first".

2.1.2 Reasons for introducing the 20 Keys

The company wanted to improve competitiveness and productivity; and increase quality

and profitability. 20 Keys were seen as the best means to achieve these goals.

Seiko wanted to integrate previous management methodologies, like TPM and TQM and

make it easy for all to understand and to measure progress of performance

improvement.

2.1.3 Approach towards 20 Keys implementation

Kick-off was in 1991. Seiko followed the proposed 20 Keys implementation methodology

rigidly and implemented the 20 Keys with meticulous commitment. All workers had to

participate in the programme; even temporary workers were fully involved.

The role of the managing director is to motivate people to implement the 20 Keys.

Seiko management believe that there are three approaches towards productivity

improvement:

Productivity improvement of line activities (quality management, engineering

improvements, etc) by staff functions.

Productivity improvement of line activities (production aspects) by line workers.

Productivity improvement of staff activities (sales, marketing, research and

development, planning, finance) by staff functions.

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In order to motivate people, it is necessary to promote a positive atmosphere of open

communication - people must talk to one another.

4S (Key 1) is the starting point and the 20 Keys should be fun.

Suppliers are assisted in implementing the 20 Keys

2.1.4 Results

The 20 Keys initial score was 1,9 and is now 4,0. The Bronze Prize was achieved in

September 1993 and the Silver Award in 1996.

Productivity has tripled, the defect rate was reduced by over 95% and work in progress

reduced by over 80%. Recent cost savings reached 15 to 20%.

An ISO 9002 certification was obtained in 1994. Seiko believes the 20 Keys assisted

them in achieving this in a short time. ISO 14001 was also achieved very recently.

The quick changeover target of single minute changeover was achieved on almost all

machines and other changeover activities.

Process lead-time improved significantly.

2.1.5 General learning points

Recognition is given in creative ways on achieving goals. A tree was planted to

commemorate the achievement of the Bronze Award and in 1996, on attaining the

Silver Award, a silver oak tree was planted.

Management made a commitment that nobody would be retrenched once significant

productivity improvements were made. Excess personnel are utilized on new product

development and in sales. Seiko Morioka’s remuneration levels are three times higher

than Seiko Singapore and ten times higher than Seiko, Indonesia – yet they are more

cost-competitive.

Competitions are introduced to improve morale and motivation. Fun is put into the

implementation of the 20 Keys.

Approximately 13% of the employees are Key leaders (or Key Champions), 9% are team

leaders and 74% of people have some sort of responsibility with regard to action plans.

No extra pay is given if employees learn new skills. The statement, “commitment to

people is the key to our future” was made several times in their presentation.

Key 6, Kaizen of Operations, was applied very successfully in their indirect divisions.

Seiko Morioka determines the actual work rate of the entire factory six monthly through

Key 13.

10

Small Groups (Key 3) assemble for approximately 5 minutes every day. A two-hour

kaizen meeting is held every month where the company focuses on broader process

improvements. Seiko has a policy of paying ¥500 (R25) for every new idea

implemented. In several areas simple changes to equipment as proposed by workers

were evident. One such improvement is a winding machine stopper. On some

specialised and “big” improvements, outside help is brought in.

Suppliers are assisted (Key 12) in improving their productivity with the 20 Keys.

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Figure 1: An example of visual display of the PPORF Silver Award flanked by

ISO9002 and 14001 certificates in the entrance hall.

Figure 2: Example of Key 8, Coupled Manufacturing. This coupling point of dies is between production and maintenance.

12

Figure 3: Example of Key 3, ideas generated in a Small Group Activity and Key 14, Empowering Employees to make Improvements. The employees made an automatic

stopper for this winding machine.

Figure 4: Example of a store. Responsibilities are shared and rotated as indicated by the wheel on top of the cupboard.

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Figure 5: Example of Key 3, a suggestion board. Ideas are written on a piece of paper and the paper is only taken off the board when the idea is implemented.

Figure 6: Example of Key 1, Cleaning and Organising. Notice how clean the floor is.

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Figure 7: Example of Key 4, Reducing Work-in-process and Key 8 Coupled Manufacturing. These areas are used to stack good quality products between

processes and are indicated by a pink sign and pink floor stripes.

Figure 8: Example of Key 1, Cleaning and Organising. It is an innovative way of organising tools for quick retrieval.

16

2.2 KONICA

2.2.1 Background

The plant was founded in 1965. Capital employed was about ¥60 billion. Konica have

517 employees. The average age of the employees is 34 years.

This plant primarily manufactures photographic and information-imaging products.

These include products such as compact cameras and environment friendly office

equipment.

Their vision is “Touching your Heart”.


Improvement of productivity and profit. Konica wanted to get the best out of the talents

of their people and strengthen the constitution of the company.

The poor success rate of other productivity improvement programmes over the

previous five years made them decide to implement the 20 Keys.


A full analysis of the reasons for failure of previous improvement initiatives was done.

A six-month preparation phase was started. Key leaders were selected for each Key.

Extensive training workshops were conducted during which everybody was trained in

the 20 Keys. Groups of 20-30 people were formed and the Key leaders were

responsible for the training in all the departments.

Corporate plans were launched for the 20 Keys during a multilevel meeting.

It is seen as a “way of life” and the 20 Keys are implemented in all departments.

Top management is extensively involved in implementation and participates in monthly

progress reporting.

2.2.4 Results achieved

The benchmarking score improved from 1,7 to 3,0 within three years.

Productivity improved two and a half times, the defect rate was reduced by over 90%

and work-in-process was reduced by over 35%. Overall equipment effectiveness

(OEE) is up by 6%.

The Bronze Prize Award was received in 1998.

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Although the revenue of the company is down, profits are up.

Improved teamwork was achieved as a result of the implementation of the 20 Keys.


Total commitment from top management is necessary. Every month, with the

involvement of senior management, feedback is given on the progress of the 20 Keys

implementation. Konica experienced the most resistance from new people.

Management focused on them to gain their buy-in and commitment. The alignment

and understanding of goals between top management and workers is a pre-requisite

(Key 2).

30% of middle managers and supervisors were “lost” in the process, because of their

resistance to 20 Keys implementation, or because they “did not deliver”.

The high standard of hygiene, even in the water closets, was outstanding. It showed

that the 20 Keys are holistically implemented and that the 20 Keys became a total way

of working/living.

Indirect divisions need more time and attention to understand the concepts of the 20

Keys. It was easier to implement the 20 Keys in the factory than in the office

environment.

The discipline of the people, the total neatness and the structured way of performing

duties were excellent examples of how the 20 Keys form a solid basis (constitution) for

improvement activities.

Improvement against set targets was indicated on detailed action plans.

Improvement corners (Key 14) were good examples of how employees are

empowered. “Before and after” photographs were displayed, indicating improvements

made and to serve as a reminder of improvement efforts.

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Figure 9: Example of Key 14, Improvement Corner. An employee made this trolley from scrap material.

Figure 10: Example of reducing unnecessary motions to work effectively (Key 1). Notice the plastic bag in the dustbin and the wheels of the trolley.

19

Figure 11: Example of an office environment. Notice the red and blue lines on the in-tray (Key 4). It indicates maximum and minimum levels of Work-in-process. Also

notice the lines on the back of the files. It helps to see which files are missing at the end of a working day and enable quick replacement of files.

20

Figure 12: Example of Key 6, Kaizen of Operations. It clearly shows the overall process flow of a product line. This is used for identifying improvement opportunities

and training of new employees (Key 15).

21

Figure 13: Example of good housekeeping. Notice the space allocated for the cleaning equipment, the trolley wheels and the readily available equipment at standing level.

No bending is required to retrieve the equipment.

22

2.3 SANYO ELECTRIC, HOUSEHOLD APPLIANCES

2.3.1 Background

Sanyo has twelve divisions in Japan of which this factory is one. Established in 1947.

Approximately 935 employees. Capital employed is about ¥173 billion.

Primary business is household appliances such as vacuum cleaners, electric fans, golf

carts, health and leisure goods, bicycle electrical accessories and electric motors and

semi-conductor equipment.


To improve competitiveness, productivity, effectiveness and profitability.


In 1993 management read the book and tried to implement the system on its own.

Restarted PPORF formally in 1997 and are now 18 months down the road.

Priority keys were : 1, 2,4,6,7,10 and 11.

A steering committee was set up consisting of Prof. Kobayashi, Key leaders for all twenty

Keys and department managers.

Sanyo held a goldfish bowl meeting early on to discuss and analyse quality and shipping

problems. The consequent issues were addressed through the application of all 20

Keys.

Everybody from the most senior to the most junior level is involved.

Suppliers are trained in 20 Keys.


Initial 20 Keys score was 1,6 and has improved to 3,1.

23 work areas have improved to level 3 in 4S (Key 1).

Productivity improved by 84%, defect rate reduced from 9.5% to 2.1%, and work in

progress reduced by 76%.

Functional visual management achieved.


23

Small Group Activities (Key 3) assisted the implementation of the 20 Keys. TV sets are

part of the Small Groups Areas – and are used for communication purposes.

The 20 Keys programme is regarded as a long-term project and companies should not

become impatient while trying to achieve results.

Good application of MODAPTS principles (motion and energy saving principles, Key 1)

was evident, especially at production line workstations.

High levels of automation, mechanization and computerization of production lines made

implementation and progress with 20 Keys faster than otherwise expected. Trays are

laid out so that components are counted easily. Spare parts, components and

inventory are labeled precisely and accurately.

People are utilized according to their skills and abilities. People are encouraged to

promote and implement ideas. Level of education is quite high.

No employees were wandering or strolling around. Clothing was very neat; it portrayed a

high level of efficiency.

A strong emphasis on measurement was experienced. Everything is measured and

reported. Action plans are visually displayed and the quality of the plans is high.

Extensive use of colour to show the status of 20 Keys implementation was evident.

Quality inspection is done on-line.

24

Figure 14: Example of a 20 Keys Goal Achievement Matrix indicating the improvement made by different teams with implementation of the 20 Keys. Green shows that more

than 80% of target is achieved, yellow shows between 50% and 79% target achievement and red shows less than 50% of target achieved.

Figure 15: Example of a detailed improvement action plan. Activities, time scales, responsible persons, goals, targets, performance against target and progress are visual and indicated by means of colour. Prof. Kobayashi views the excellence of

these action plans as a vital indication of the quality of the renewal and improvement initiative. Without action plans and improvement graphs in every workplace there can

be no sustainable improvements. Note that these action plans are made for 12 months.

25

Figure 16: Example of Key 1, Cleaning and Organising. Unnecessary motions are reduced to a minimum because the trolley is placed near the workplace and can be

moved around with little effort.

26

Figure 17: Example of Key 1, model desk. It indicates order, cleanliness, efficiency and no unnecessary stationery being ordered or wasted

Figure 18: Example of Key 1, Cleaning and Organising of spare parts. Racks and items are clearly numbered for easy retrieval and inventory control.

27

Figure 19: Example of Key 14, Empowering Employees to Make Improvements Employees are encouraged to make their own “gadgets” to make work easy on the

production line in these kaizen corners. Training is provided in the skill required (Key 15).

28

2.4 KOSMEC

2.4.1 Background

KOSMEC is a small company. Established in 1986 by seven people whose initials spell

the name of the company.

Kosmec develops and manufactures precision instruments and peripheral equipment for

streamlining production and reducing labour. They have 100 employees. Their slogan

is “Never fear failure, never compromise”.

Capital employed is ¥60 million.


To become more cost-efficient, productive and competitive in difficult economic

conditions.

To foster human potential/ability throughout.


Started 18 months ago when Prof. Kobayashi introduced the 20 Keys into Kosmec.

During the first six months, management was trained in the 20 Keys.

Implemented all 20 Keys simultaneously but focused on Key 1 and Key 5. Management

is totally committed to the process and gives their support.

Vector alignment was used to align employees behind a common goal (Key 2).

All departments are involved with 20 Keys, which are seen as a long-term programme

and not used as “first aid”. All employees must be able to analyse problems, come up

with solutions and implement plans to improve productivity.

They give quick feedback to employees on improvement suggestions. Bonuses are paid

on achieving set targets and results.


Initial 20 Keys score was 1,7, which improved to 3.2.

Defect rate was reduced by over 80% and productivity improved by 53%.

Achieved overall 70% single minute changeover. Also assisted their suppliers in

achieving single minute changeover.

29

Profitability increased by 29%.


The 20 Keys Programme is used as a management tool, to improve efficiency and to

improve the training of employees. Resistance was overcome through the use of Small

Group Activities (Key 3).

Use is made of Key leaders as a full-time project manager is not economically feasible.

KOSMEC has excellent housekeeping and has cheap but innovative ways to improve

the workplace. All tools are stored in the open - nothing is locked away. Organization

of the workplace and the enthusiasm of the people was outstanding.

Self-discipline of employees is extremely good. All employees dress the same.

The housekeeping in the office environment is excellent. Kan-ban cards (Key 4 and 8)

are used in the stationery cupboards. A good example was the short summary of

telephone numbers on the back of the handsets.

4S (Key 1) and Key 5 are used to assist with implementing quick changeover. All the

departments that achieved 4S level 3 were verified and recognised with a visual 4S

sign for everyone to see.

Kosmec measures the implementation of the 20 Keys programme with detailed action

plans, which are displayed visually.

Standard Operating Procedures (SOP’s) and quick changeovers, (Key 5 and Key 11)

were evident everywhere.

30

Figure 20: Example of the research and design office. All the desks and side cupboard contents are standardised and organised in a similar way (Key 1).

31

Figure 21: Example of a filing system. KOSMEC uses a Kanban system (Keys 4 and 8) and a one-minute file retrieval (Key 5) system. Notice the labels and colour coding

system.

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Figure 22: Example of Key 1, Cleaning and Organising and Key 4, Reducing Work in Process.

Figure 23: Example of a well organised factory layout and clear walkways.

33

Figure 24: Example of Key 1, Cleaning and Organising. This is a good example of one of the requirements of a model desk - no unnecessary items required.

Figure 25: Example of inventory control. Minimum and maximum levels of inventory are indicated on each tray (Key 4).

34

Figure 26: Example of Key 1, Cleaning and Organising, Key 4, Reducing Work in process and Key 8, Coupled Manufacturing in an office environment. The red line on the in-tray indicates the maximum work-in-process level and the green line indicates

readiness to receive further work.

Figure 27: Example of a typical work environment in the factory. Notice the slanted tray for easy retrieval of equipment.

35

Figure 28: Example of a Goal Achievement Matrix (Key 2, Goal Alignment) and the visual display of performance against set goals and targets. Colour is widely used to indicate the extent to which goals are achieved. Blue is used when more than 80% of the targets are achieved, yellow for between 50% and 79% achievement and red when

less than 50% of the targets are achieved.

Figure 29: Example of visual display of performance against set targets for achieving a 4S environment.

36

Figure 30: Example of Key 8, Coupled Manufacturing. Notice the use of Kanban trolleys.

Figure 31: Example of Key 5, easy, quick retrieval of instruments for quality control.

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Figure 32: Example of Key 13, Eliminating Waste. This is a treasure map, which is a visual way used to indicate opportunities for the elimination of waste. A coding

system of CGS refers to copper, gold and silver opportunities to eliminate waste.

Figure 33: Example of innovative ideas to make work easy

38

2.5 SANYO ELECTRIC, REFRIGERATION

2.5.1 Background

The company started in 1972. Their vision was “Sanyo to be needed by people all over

the world”.

Cooling products are produced for the display of food in shops. Their market share is

55% international and 35% Japan. The capital employed is ¥56 billion.

Number of employees 700.


Because of the economic downturn, the demand for Sanyo’s products decreased, prices

were pushed down, profits decreased dramatically and the need to work more

effectively became important. Sanyo also wanted to improve the quality of their

products.

Furthermore Sanyo needed to reduce costs through stock reduction and speed up

customer service.

Another motivation was to change the employees’ attitude to improve productivity.


In 1996 they started with the preparation phase, the second year was implementation

and the third year was continuous improvement.

The 20 Keys Programme was aimed at improving their quality and cost-effectiveness

significantly.

Team leaders were trained in the 20 Keys and four Keys were implemented at a time.

The sections decided which Keys to implement in the respective areas.

Management formed a core group from which implementation started.


The initial score of 1,55 was improved to 3,4 in 3 years. Productivity increased by 86%,

the defect rate was reduced by 76% and the number of people was reduced by 200.

Previously Sanyo was producing three months’ stock. The production lead time currently

stands at three weeks from ordering to delivery.

39

52% of the sections reached a 4S level 3 (Key 1) work area after the first year and in

1998 81% of the work areas reached a level 3.

Single minute changeover of machines increased from 6% to 55%.

ISO 9001 and ISO 14000 were also implemented through the 20 Keys Programme.


Implementation of “Kaizen corners” (Key 14) functions effectively.

Multi-skilling (Key 15) is used extensively to equalize workload.

The attitude of people changed through the 20 Keys by focussing on productivity. It leads

to every individual taking ownership.

40

Figure 34: Example of Key 1, Cleaning and Organising and Key 5, Single Minute Information Retrieval. Notice that the cupboard is right next to the workstation.

Figure 35: Example of a Key 1 radar chart showing the benchmarking score. It indicates the initial score, the progress made over the past few years as well as the targets set for the new year. Notice that the chart has 23 points (originally the score

was out of 23 points) but only 20 points are scored.

41

Figure 36: Example of the display of the 20 Keys action plans.

42

2.6 NICHIRO

2.6.1 Background

The company was started in 1947. The main focus is producing frozen foods, specifically

fried fish, meat and pork cutlets. Nichiro exports products to 21 countries.

Approximately 400 people are employed.

In this industry the development of new products is seen as a competitive advantage.

This is done through investment in research and development and joint ventures with

overseas companies.

Nichiro’s slogan is “ Being continuous builds power, being quick means being strong”.

They strive to be “ with the consumer all the time, in every aspect of his/her life”.


Nichiro were no longer competitive in the market. Although they had several kaizen

initiatives underway, they were still not meeting consumer demand.

Nichiro’s ability to react to market demands was not quick enough and productivity was

inadequate.


They introduced the 20 Keys in March 1992. Firstly, they undertook plant tours of other

companies who were implementing the 20 Keys.

Key 1 was started immediately while training was done on twelve selected Keys. The

official kick-off was a year later in March 1993.

12 Keys were selected for initial implementation. Kaizen presentations were held once a

month during which improvement initiatives and opportunities to improve were

discussed.

During 1995 Key 1 and Key 10 were strengthened as the basis for achieving the target

score of 70 points.

43


The benchmark score improved from 1,65 in 1992 to 3,6 currently. Productivity was

doubled; work in progress was reduced by 78%; the defect rate was reduced by 82%

and sales increased five-fold.

Nichiro received the Bronze Award in 1996.

The company aims to achieve the silver award in March 1999 and to treble productivity.


Nichiro implements their own ideas on how to work more effectively and make use of

kaizen corners (Key 14) to make devices that improve physical work areas. Small

monetary rewards are given for suggestions.

All section leaders use the same discussion area. This functions as a Small Group

Activity (Key 3).

Sample photographs of quality products are displayed for operators to check and inspect

quality themselves (Key 11). Employees are trained on maintenance and perform

simple maintenance tasks themselves (Key 9).

Coupling points (Key 8) were visible all over the factory with clear indications of minimum

and maximum levels of inventory (Key 4).

The materials store layout is clearly indicated on a board in the store. The control board

indicates the level of stock for the different line items.

Without spending a lot of capital on new equipment, a great deal has been achieved in

terms of production flow, cleanliness and organising, productivity, quality and

competitiveness.

Key leaders do 20 Keys training during lunch hours. Training is supported by visual

displays of ideas and concepts on boards and by distributing flyers.

The factory general manager plays the role of the 20 Keys project coordinator and in the

initial stages spends about 40% of his time on the 20 Keys.

44

The Nichiro 20 Keys Programme implementation process:

March1992

March1993

March1994

March1995

March1996

March1998

20 KeysIntroduction &Preparation K

ick-O

ff

20Keys

Year 1

20 KeysYear 2

20 KeysYear 3

20 KeysYear 4

Study 12 Keys Key 1 Started Tours to otherplants in otherindustries

12 Keys started Study of 8 Keys Kaizxenpresentationsevery month

20 Keysimplemented

Develop modelareas in eachKey

Kaizenpresentationsevery month

Studied linkageof the Keys

StrengthenedKey 1 andWorkplacediscipline (Key10)

Spread 20 Keys 20 Keys Studysessions

“Dry Campaign” Skill levelcontest

StrengthenedKey 1

Kaizenpresentationsevery month

PPORFquestioned

Poster slogancontests

Background:

1. We hadimplementedvariousKaizenactivities. Wewanted toincrease ourlevel further

2. There wereno quantifiedgoals in someareas

3. The companywas weak atmeetingchanges Challenge for

Level 3.5

Level 3.5attained (July)Bronze Award(Sept) – Score

71.1

PPORFScorePoints

Original:33 43-7 53.9 57.2 61.4 72

45

Figure 37: Example of a model desk.

46

2.7 SEIKO, SINGAPORE

2.7.1 Background

Seiko Singapore is an overseas manufacturing facility of Seiko SII, Japan and

manufactures Seiko watches. About 590 people are employed and manufacturing

started in 1973. The workforce is a mix between Chinese, Malaysian, Indonesian and

Indian.

Capital employed is S$35 million.

The letter “I” in the logo of the company represents innovation (advancing for people and

technology), interface (connecting people, technology and society) and instruments

(helping people and society live better).

Started with the 20 Keys in 1991. Other integrated initiatives are ISO 9001 and ISO

14000.


The most important reason was an urgent need for cost reduction and a need for

increased productivity (watches manufactured per person per day). Market conditions

had become very tough due to saturation and diversified consumer requirements.

The mother company having already enjoyed huge successes with the 20 Keys in Japan

suggested to Seiko, Singapore to introduce the 20 Keys.


Preparation started in September 1991 when Morioka Seiko was visited and six

managers were trained. During the first preparation year everybody, including the

managing director in Seiko Singapore, was trained.

Benchmarking was done in 1992 during a multilevel meeting. Kickoff was in March that

year. During the first year of implementation, 10 Keys were implemented and from

the second year all 20 Keys simultaneously.

In the beginning phase Prof. Kobayashi was present for two days per month for at least

six months.

One day per month is set aside for an official PPORF day. On this day a banner is

displayed and the day is dedicated to the 20 Keys program.


47

Initial score was 1,9 and increased to 3,9. Productivity has more than tripled, work in

progress was reduced by over 80%, the defect rate was reduced by over 80% and

cost was reduced by 40%.

Suggestions improved from 12 per person per year to 43. Seiko Singapore currently has

approximately 50 active small groups.

Unmanned operation of equipment during lunchtimes was achieved for 92% of

equipment.

Kaizen corners were established in 22 areas.

Quick changeover (Key 5) has been achieved on 90% of all large machines.


The monthly 20 Keys Day is used as a reminder and focuses the effort of the people

towards the common goal of improving productivity through the 20 Keys.

Many visual display boards are mounted on wheels for flexibility.

A level four “image” board is used to display photographs of examples of a specific

concept of a Key and what the actual standard of that Key is. Photographs of the

respective key leaders are displayed in specific areas. In that way everybody is

involved and questions can be directed at key leaders. Ownership per area is created

through the display of the responsible person’s name on a board above the work area.

Multilevel meetings are conducted six-monthly where every manager as well as

approximately 50% of first-line (supervisors) managers are present.

Frequently a specific Key is challenged and the relevant Key is indicated by means of a

sticker attached to everybody’s working clothes.

Their focus is currently on leadership development and deeper involvement of all

employees.

One year action plans per Key are developed at the second level of supervisors

48

Figure 38: Example of Key 16, Production Scheduling.

Figure 39: Example of Key 1, Cleaning and Organising, even outside the factory buildings tools are placed near the work place.

49

Figure 40: Example of Key 15, a Skills Matrix and Key 3, ideas being generated in Small Group Activities

Figure 41: Example of Key 1, Cleaning and Organising, and Key 14, Kaizen Corner.

50

Figure 42: Example of a level 4 visual image display. The photographs show examples of level 4 targets to be achieved in each key.

Figure 43: Example of Key 9, maintenance planning.

51

Figure 44: Examples of action plans per key. There is one 12 month action plan for every one of the 20 Keys - Developed at the second level of supervisory management.

Figure 45: Example of a store that is indicated by the colour pink. It indicates good quality work-in-process. It indicates how many are required (6) and how many were

made (6). It also indicates the person's name responsible for that area creating ownership.

52

Figure 46: Example of photographs being displayed showing highlights of appreciation day. Recognition for effort and achievements is given on this day.

Figure 47: Example of Key 9, Maintaining Machines and Equipment. Visual maintenance of planning is done.

53

Figure 48: Example visually displaying an idea that was implemented in terms of Key 3, Small Group Activities and Key 19 Saving Energy and Materials – through this idea

yield was improved by over 70%.

Figure 49: Example of the company's goals and objectives. These are displayed at the entry of the factory for everybody to have a look at every time they enter or leave the

factory.

54

Figure 50: Example of Key 14, Kaizen Corner, in the office environment. Notice the diagonal lines which make it easy to replace files because you ”don’t have to think or

read” (waste) before replacing it.

Figure 51: Example of Key 3, Small Group Activities. It indicates the name of the team, the date of the next meeting as well as the progress that has been made with the implementation of the ideas. The round circle is a set of action plans on how to

implement new ideas. If all the blocks are fully coloured in, the new idea is implemented.

55

Figure 52: Example of Key 4, Reducing Work-in-process (WIP). It is a visual display of a WIP tracking system.

56

3 THE 4TH INTERNATIONAL PPORF CONFERENCE

PROCEEDINGS

3.1 INTRODUCTION

The fourth International 20 Keys Conference was held in the Overseas Vocational Training

Association building (OVTA), Makuhari, Tokyo, Japan on Thursday, 12 November 1998. The

Makuhari suburb is an ultra-modern suburb built on reclaimed land from the sea. It has

modern, spacious buildings linked with broad walkways and is surrounded by parks.

The conference was attended by approximately 700 people - mainly Japanese, but including

people from the UK, Germany, Mexico, South Africa, Singapore, Korea, the USA and the

Republic of Moldova. Presentations were made by representatives from 15 Japanese

companies and eight overseas companies from six different countries.

In his keynote address, Prof. Kobayashi said that the application of 20 Keys in countries

other than Japan had grown significantly. The 20 Keys system (or PPORF) is a different

management philosophy. The previous “command and obedience” management style no

longer helps companies to survive in highly competitive environments and markets. For

example, the multilevel meeting concept of the 20 Keys makes it possible for management

to align the company goals from the top management level down to the shopfloor worker of

the company.

Prof. Kobayashi mentioned on his numerous visits to companies in different countries, it was

evident that the 20 Keys were mostly part of the corporate strategy and was not applied as a

first aid programme. It brings about dramatic changes.

In his keynote address Barry Venter made explicit reference to the global economic

slowdown which would influence the way companies did their business. He suggested that

companies could make a difference to the way their businesses responded and adapted to

any environment and they could improve the constitution of their organisations to sustainably

compete in the most difficult circumstances. He concluded by saying that in Japan,

Germany, the UK, Singapore, South Africa and many other countries, the 20 Keys PPORF

57

Programme had helped companies grow and prosper whilst others in the same industries

who are not using the 20 Keys Programme faltered, failed or closed down.

3.2 KONICA PACKAGING CO LTD

3.2.1 Background

See paragraph 2.2 for background on Konica, reasons for and approach towards 20

Keys implementation and the results achieved.

Camera films, as a means of preserving important photographs and pictures that can

never be re-taken, requires very high quality standards. For this reason, and because

intensified competition put pressure on cost, they embarked on the 20 Keys

programme.


They achieved several significant results (par 2.2.4). The main reasons and

contributors to their success can be summarised as follows:

Reduction of mini-stoppages and long time breakdowns: On the shopfloor the

three evils of waste were eliminated. The teams involved with the elimination of

waste were from engineering, manufacturing and quality assurance. A

preventative maintenance plan was drawn up and followed.

Reduction of manhours through operation kaizen: Manhours were reduced by

33% in 3 years. This was achieved by cross-training employees in operations,

operation kaizen and daily check reviews.

58

Unmanned operations: A 10% unmanned target was reached, multi-process

handling was achieved and a 4% increase in operation availability was achieved,

59

3.3 SHIKOKU KAKOKI CO LTD

3.3.1 Background

The company was founded in 1961 and employs 582 people. Capital employed was

¥145 million.

The company manufactures food and chemical processing machines as well as

packaging materials for these machines. They have a local and an export market and

also process food made from soya beans.


The company develops customised products to order and were faced with an ineffective

production delivery system. They were interested in a programme that could assist them

in kaizen as well as revolutionise production. The 20 Keys provided that answer.

Cost was also becoming a major concern when the export market faced serious

setbacks.

3.3.3 Approach towards the 20 Keys implementation

5S (4S and discipline) was implemented on the shopfloor. Prof. Kabayashi conducted

basic training in kaizen methods such as 4S and process analysis both in direct and

indirect divisions.

At kick-off all production employees were taught how to improve efficiency and how to

eliminate waste (MUDA).

Progress was slow in the third year because the design and development department,

upstream from production, was not part of the 20 Keys programme. Once this

department became involved, progress was made.

Action plans were used to align targets between different departments and focussed

effort was put into “management by objectives”.


Coupled manufacturing was achieved in the various departments and camaraderie

developed which improved teamwork.

The bronze prize was achieved in 1996.

61

The design and development department reduced time to prepare drawings by 25% and

the production rate increased by 35%. The assembly lead-time was reduced by 53%;

the production per person increased by 65%.

62

3.4 SANYO ELECTRIC CO LTD

3.4.1 Background

See paragraph 2.5 for complete details of background, reasons for implementation,

approach and results.

The crash of the economy in 1992 affected the food distribution industry and put pressure on

the company. The market shrinked, competition intensified and profits were down

substantially. There was a strong need to survive. The basic approach was the complete

elimination of waste (MUDA) and to do kaizen without any money (small investments with

big effects).


See paragraph 2.5.4 for details of results achieved. Everybody is involved in kaizen

activities. They also try not to slip back on the 4S achievements. The actual work rate has

increased and the people’s attitudes have changed towards the elimination of waste

(MUDA).

63

3.5 SANYU DENSHI KOGYO CO LTD

3.5.1 Background

The company was established in 1957 and the number of employees is 410.

Sanyu do partial and continuous plating of metal connector parts. The company is

located near Tokyo.


The company started with the 20 Keys almost five years ago - they had a lot of other

initiatives in place and were looking for something else to improve productivity. The

company was also faced with big changes in the market demand for their products.

The target was to increase productivity threefold.


4S was used to make work easy.

At the start not all 20 Keys were implemented at the same time. However all 20 are now

being implemented and scored.

Prof. Kobayashi was involved in all the phases of implementation; from preparation, to

introduction, promotion and to development of the 20 Keys programme.

A multilevel meeting was used for the kick-off and alignment of goals between top

management and the rest of the company.

Gold fish bowl meetings were held to implement Coupled Manufacturing, Key 8.


All plants are certified level 3,5 on 4S.

Control boards are used in a specific store and a level 3,5 on 4S is achieved. In the

inspection and manufacturing departments, model worktables are certified.

Single-minute information retrieval was achieved in all staff departments and a 72%

quick changeover achieved in production. The target is to have a quick changeover on

all the shifts, 2 shifts per day, as well as on all lines.

Productivity has improved by 185%, the target being 200%. The shifts have been

reduced from three 8-hour shifts to two 8-hour shifts.

64

3.6 TOYO NOKI CO LTD

3.6.1 Background

Toyo Noki operates in the agricultural sector. Products manufactured are sprayers,

potato and beat harvesters and heavy duty agricultural equipment.

The company was established in 1967 and employs 160 people. Capital employed is

¥180 million.

Their slogan, “Agri Wave“, indicates their commitment to the agricultural industry that

faces a “wave of low-cost mechanisation, a wave to reduce labour and a wave to protect

the environment”.


The agricultural industry has been rapidly changing with an open market trend and Toyo

Noki did not have the capacity to meet these trends. They were accused of being “laid

back”. Sales and marketing departments exist within the company and therefore they

have the means to hear “the voice” of their customers. They did however not react to the

needs and requirements of the customers.

The target was to establish a culture of continuous improvement to counter the threats of

the external environment.

The overall company goals were to reduce cost, increase sales, share information

between sales and marketing, reduce inventory, establish a functional quality control

system and promote related businesses.


The company introduced the 20 Keys some twelve years ago. They started by

introducing 4S. Not all departments began at the same time, which caused problems;

especially when recognition was only given to groups who performed well.

Initially the sales, marketing and product development departments were not involved in

the 20 Keys programme. Fortunately everybody is now implementing the 20 Keys and

the goals have been aligned properly. The participation of sales specifically is a big help

because the customers’ needs and requirements are reflected in their products.

Every year a multilevel meeting is held where corporate policies are announced and

goals are agreed upon.

65

The company encountered problems with implementation of the 20 Keys. One reason

was that the goals set for 20 Keys did not always match up with the corporate goals. A

matrix for every goal against targets for the 20 Keys implementation was drawn up, e.g.

cost reduction was split and allocated to specific Keys.


No indication was given.

66

3.7 SANYO ELECTRIC GAS APPLIANCES CO LTD

3.7.1 Background

Sanyo Gas manufactures and sells gas home appliances such as air conditioners, home

heaters, water supply systems and kitchen stoves.

Founded in 1977, they employ 254 people. The company strives towards manufacturing

equipment which is environment friendly.


There was a great need to improve productivity and to strengthen the company’s

constitution through quality. A zero-defect activity and a suggestion scheme had already

been implemented but needed to be upgraded to a total activity for overall efficiency.

At that stage only management realised the problems which the company faced. There

was a desire to develop an activity to enhance total participation and to include the

supplier chain.


Indirect divisions accounted for two-thirds of the company. It was therefore a problem on

how to involve the indirect divisions. Involvement was achieved by a multilevel meeting

where all departments were present, as well as outside suppliers.

Plant tours to other companies, who had already been implementing the 20 Keys, were

conducted to learn from their implementation process.


The radar benchmarking improved from 32 to 62 points in three years.

The productivity improved by 30%, WIP was reduced by 10% and in-process defects

were reduced by 75%.

Some intangible results were that awareness was heightened to perform problem-solving

tasks based on a common understanding of the real problems. Healthy, productive

competition was enhanced and employees started taking ownership and personal

responsibility.

Everybody learned patience and perseverance to continuously improve processes and

performance.

67

3.8 HIMEJI RIKA CO LTD

3.8.1 Background

The company is in the quartz glass processing business. They produce halogen lamps,

high and low pressure mercury lamps and quartz products for semi-conductors.

Himeji was established in 1968 and the capital employed is ¥49 million.


The company introduced the 20 Keys three years ago after realising that the economy

was deteriorating.

The company also wanted to prepare for the year 2000 - described as the “era of

genuineness”.


The first year was used to learn the 20 Keys methodology. Year two started with

learning about the implementation of the 20 Keys. Results became evident and a

comprehensive plan for the implementation of the 20 Keys was drafted.

Full-time project coordinators were appointed and Sales and other indirect divisions

became involved.

The overall goal and slogan was “better-faster-cheaper”.

The first stage was focused on energising the workplace through problem solving shared

by everybody. Good communication helped people to think positively.

Analysing and “kaizening” machine tasks, manhours and ergonomics of motions

improved productivity. Process capability improvements were focussed on and poka-

yoke (mistake proof) devices were applied. Complete preventative measures were taken

against every defect and complaint.

One-page standards were drawn up for standard operations on machines and to monitor

the actual tasks performed.

68


Productivity doubled, the defect rate reduced by 25% and work in process reduced by

50%.

The standard operating procedures (one page standards) are a common way of

conducting work, production and business.

69

3.9 TAKATA KYUSHU CO LTD

3.9.1 Background

The company manufactures air bags used in motor vehicles for safety reasons.

Founded in 1991, they employ 500 people and the capital employed is ¥70 million.


The production volume of airbags is increasing dramatically as they have become

standard in most newly manufactured cars. On the other hand the market price has

dropped because of new competitors and improved production processes.

This raised the need to improve productivity and continuously improve processes.

Various other activities were implemented but did not penetrate to all employees or to

the lowest levels within the company properly and it was therefore decided to implement

the 20 Keys programme.


The overall purpose was to enhance the level of awareness of all employees and

develop a strong constitution to immediately meet changes in market demand.

Study sessions started in April 1997 and tours to other companies were undertaken.

During the first multilevel meeting goals were set and discussed.

Initially only a few keys (1,4,7,9,11) were implemented. Ten teams were used for the



The benchmark score improved by ±35%.

The number of airbags produced improved by 75% while total manpower decreased by

5%.

70

3.10 SANYO ELECTRIC, LAUNDRY AND MICROWAVE DIVISIONS

3.10.1 Background

The plant manufactures a wide variety of products such as fully automated washing

machines, washing machines, dryers, microwave ovens, and micro ovens for industrial

use.

The plant contributed to the prospering of electric appliances since the development of

the agitation type electric washing machine in 1953.

The plant is located beside Lake Biwa, which is renowned for its scenic beauty and

blends well with the natural environment.


The division wanted to strengthen the manufacturing constitution for:

automation and unmanned operations of core processes

logistics and distribution Kaizen in the assembly process

CIM “wash systems” development and introduction

The direct and indirect divisions were all involved.


Training started in February 1996 and the kick-off was in December 1996.

They set a target for achievement of the bronze award in three years’ time.


The benchmark score improved from 40 to 54 points (their target is to reach 80 points by

2003).

Productivity improved significantly.

Unmanned operations and improvement of uptime on the core processes were achieved.

In indirect divisions the mechanisation of all processes has been promoted significantly.

71

3.11 NICHIRO CO LTD

3.11.1 Background

See paragraph 2.6 for the background, reasons, approach and results. Changes in lifestyle

promoted the increase of different kinds of foods that are simple and easy to prepare.

Nichiro’s drive is 4S, hygiene and speed.


72

3.12 NIPPON ABS CO LTD

3.12.1 Background

Founded in 1984, the company employs 1 075 people. Nippon is a joint venture

between a Japanese corporation, Nabco Ltd and Robert Bosch of Germany.

Nippon manufactures ABS (Antilock Breaking Systems) and tracking control systems

primarily for the automotive industry. Currently there are 11 Japanese manufacturers of

ABS and the competition has increased both in technology and price. There is therefore

an urgent need to improve productivity and secure profits.


Since ABS became standard for all Japanese cars, sales volumes were expected to

increase. However, at the same time car prices dropped significantly and the company

had to focus on productivity improvement, effective policies and ISO 9001 certification.

They tried to deliver increased sales volumes with the same number of employees. It

was therefore decided to implement the 20 Keys.

The previous top-down goal setting and management has not penetrated to all

employees and bottom-up activities like kaizen needed to be vitalised.


They started with the 20 Keys in 1995 and named the 20 Keys programme GUTS-YF -

meaning “Grade-Up by Teams of Yokosuka Factory”. Everybody wears GUTS-YF

badges on their clothing to indicate their commitment.

All 20 Keys were introduced simultaneously and goals were set at a multilevel meeting.

They have action plans for every Key.

A general manager is the sponsor for the 20 Keys, one person was allocated as a

fulltime project as project leader and four coordinators with different key leaders were

appointed.

They make use of “challenge”-stickers. These stickers are put on areas, desks and

machinery which they want to improve. Everybody therefore focuses on these

improvement areas.


73

The benchmarking score improved from 1,6 to 2,7.

Quick changeover has reduced from 17 minutes to 3 minutes. The number of

suggestions by employees has increased from zero to 300 in total per month.

Productivity has more than doubled.

74

3.13 SEIKO INSTRUMENTS, SII MICROPART CO LTD

3.13.1 Background

Founded in 1994, they employ 250 people. The company is situated in Sendai-forest

area which is known for its beautiful environment.

Micropart is a division of Seiko Instruments Incorporated. They manufacture micro

batteries for watches, cellphones, pagers, memory back-ups of computers, portable CD

players and thermometers.


The market changed and competition became fierce. The company was faced with

problems of high manufacturing costs and long lead times.

Sales and profits declined as the popularity of their products in the market weakened.


The start of the 20 Keys was a trial run on 4S to see if it would assist them in improving

output. It proved worthwhile and they started by implementing 13 Keys. The kick-off was

done through a multilevel meeting.

The goals were to improve productivity, reduce lead time, decrease inventory levels and

save energy.

75


76

3.14 SEIKO, MORIOKA

3.14.1 Background

The company manufactures watches. See paragraph 2,1 for details of background,

reasons, approach and results of the 20 Keys.


77

3.15 TOYO ELECTRIC CO LTD

3.15.1 Background

The capital employed is ¥4,4 billion. The company was founded in 1918 as a specialised

manufacturer of railway related electric products.

The product range of electric motors is manufactured for locomotives, trains, generators,

electric collectors, induction motors, ticket issuing machines, etc.


The 20 Keys programme was introduced to “survive”. The industry faced similar

problems to other industries such as increased competition and an open market.

Safety and reliability of their products became more important because more people

were being transported and the speed of the trains increased.


The 20 Keys started in January 1995 and the kick-off was in November of that year.

Keys 1 and 3 were started with and all 20 Keys were implemented simultaneously.

Team leaders were used to implement the 20 Keys and the general manager was the

main leader of the 20 Keys programme.

The goal was to completely eliminate waste. That was addressed waste in processing,

reducing walking distances, implementing a new layout of equipment in the factory and

integrating different workshops.


Five workshops were integrated into one. Travelling distances were reduced

significantly, WIP was reduced and productivity improved.

78

3.16 RYUKOKU CO LTD

3.16.1 Background

Founded in 192,1 the company employs 260 people. Capital employed is ¥30 million and

the turnover is ¥7,6 billion.

The company sells cattle feed and fertiliser, produces and sells packaged eggs and

produces omelets.


The company introduced HASSP (Hazard Analysis Critical Control Point developed for

space food at NASA) in April 1997 and strengthened hygiene and quality control in all

areas. They strive to make “safe, fresh and tasty” products.

Since eggs are fresh food, they produce eggs 365 days a year to ensure the quality and

freshness of their products. It is a major challenge to produce inexpensive quality

products and it was therefore decided to implement the 20 Keys to improve the

company’s constitution.


The Managing Director toured other plants that had already implemented the 20 Keys.

After the tour a seminar on the 20 Keys was held where Key champions and group

leaders were trained in the 20 Keys concepts.

The 20 Keys activities were started in 6 workplace areas simultaneously. All employees

were involved throughout the plant.


The benchmarking score improved significantly.

The company experienced discrepancies in results achieved by the different

departments. It is therefore a goal to invest in leadership development, have patience

and build motivation.

79

3.17 SEIKO SINGAPORE

3.17.1 Background

See paragraph 2.7 for complete details of background, reason for implementation, approach

and results of implementation.


80

3.18 SAPPI FORESTS

3.18.1 Background

The company manages 420 000 hectares of forest. Their task is to supply the mills of

Sappi with 6 million tons of logs per annum.

Sappi Forests employs 402 salaried personnel and 1600 wages staff.

Sappi’s vision is to become a world-class company.


Sappi looked for an integrated, holistic and flexible philosophy to improve the business.

Their key measures are profit, people and process. The 20 Keys are used to measure

the process area.

Sappi also looked for an operational culture that would be sufficiently diverse to cover all

operations and be meaningful to the entire staff.


Sappi uses multi-disciplinary teams to run 100-day projects based on specific Keys. After

the 100 days the team presents its findings and results to the senior management. This

forms a best-operating practice and is shared with the whole company. A true learning

company is thus achieved.

All the Keys were implemented in sets of four and run on a project management basis.

During the past thirty months forty eight teams were involved in the training and



The benchmarking score has improved dramatically. The financial gain was

approximately R23 million.

A significant improvement was made on the road to best operating practices and towards

a learning organisation.

81

3.19 CERAMIC INDUSTRIES LTD

3.19.1 Background

The company is the largest manufacturer of ceramic tiles in South Africa. Their vision is

to be amongst the top 50 ceramic manufacturers in the world and their slogan is “Striving

towards Global Competitiveness”.

The company produces approximately 850 000 square meters of tiles per annum.


Ceramic Industries identified the need to restructure and to grow.

Previously the company implemented many of the key elements in an uncontrolled basis

and wanted to control it better. It also wanted to have a tool to benchmark itself against

other companies.


All the team leaders and staff were trained in March and April 1997.

Seven Keys were initially chosen to be implemented. Monthly multilevel meetings were

held to evaluate progress, goals and plans.


The radar chart benchmarking score improved dramatically and the operating profit

increased by approximately 80%. Quality and productivity have both improved and work

in process has been reduced.

The net asset value versus market share increased by approximately five times and

earnings per share improved by approximately 100%.

The morale of the workforce has increased and the suggestion rate has therefore

improved substantially. Problem solving takes place in the small group activities.

Quality assurance is now done in-line and operators take responsibility for own quality.

Team spirit has increased.

82

3.20 SANYO E & E CORPORATION, MEXICO

3.20.1 Background

The company was founded in 1978 and manufactures compact apartment size freezers

and refrigerators. Capital employed is about US$24 million and the company employs

650 people.


The company has 9 fulltime 20 Keys members and training started in October 1996.

Initially 14 Keys were implemented.

Sanyo started evaluating each workplace area on Key 1 performance and rewards and

recognition was given for best areas.

A videocassette, containing information on the 20 Keys, was given to all new employees

as part of their induction.

Prof. Kobayashi visited them after a year of implementation and made some suggestions

for improvement, especially on Key 1. Currently 32% of their desks are model desks.

Pins, posters and pamphlets have been developed to provide information to employees

on the 20 Keys programme.

83

3.21 SEIKO INSTRUMENTS TECHNOLOGY (JOHOR) SDN BHD, KOREA

3.21.1 Background

The company was established in May 1989. Capital employed is RM$10 million and

260people are employed. The workforce consists of Chinese, Malaysians and Indians.

Seiko Instruments Singapore is the 100% shareholder. Their main business is the sub-

assembly process of self-winding mechanical watches.

The annual turnover is ¥2,8 billion.


The benchmarking score has improved from 1,9 to 3,4 in four years.

The labour productivity has improved by 100% and customer complaints have decreased

by approximately 101%. Work in progress has been reduced by 53%.

84

3.22 PITTARDS, UK

3.22.1 Background

The company was established some 170 years ago. Until about twenty five years ago

when the company became a PLC, Pittard’s was a family business.

Pittards import partially processed hairsheep skins from the African continent, they then

tan, dye and finish the skins before selling them to glove manufacturers throughout the

world. Their products serve the sport, fashion and military markets.


There is a need to be number one in the company’s market and they want to improve

continuously to be able to stay ahead of the competition.

Previously other initiatives, such as Total Quality and Team Working were implemented

with limited success. A more holistic approach was required.


An initial benchmarking was done and a gap between current and preferred scores

indicated opportunities for improvement. Ten coaches were selected and trained.

It was decided to initially roll out Keys 1, 2, 3 and 9 which was launched just after the

Christmas break.

A Pittards 20 Keys logo was designed and developed to suit their style and company

brand. Key 1 was the first to be rolled out amongst 20 areas.

Videos of before and after Key 1 implementation were made and proved that people

would understand the concepts better by seeing it on video. Commitment and buy-in

was then obtained.

.


Morning meetings started within groups where they communicate as a group about

targets to be reached, skill matrices, sickness/absence, efficiencies, courses, customer

feedback and problems.

Morale of people is very high and individuals are keen to discuss their different

achievements, even with visitors to the factory.

85

Improvement in performance measured over the past eight months has increased

dramatically. Efficiency across all production departments is up by an average of 10%.

The number of sick days has decreased by 50%.

Lead time has improved from 12-14 calendar days to 9 calendar days.

86

3.23 SANLAM LTD

3.23.1 Background

The company was established in 1918 and employs approximately 12 000 people. The

assets under management are about R150 billion.

Sanlam’s main business is life assurance and is currently moving towards a financial

institution with a broader range of financial services and products.


Three years ago it was decided to transform the company into a globally competitive and

world-class one. Several renewal projects were identified of which one was to improve

productivity and improve workplace management.

It was decided to use the 20 Keys to workplace improvement because of the holistic

approach and nature of the programme.


A project team was set up and their first step was to customise the 20 Keys to suit the

service industry.

During the first year everybody was trained in the 20 Keys. Monthly feedback was given

to top management on progress.

Several quick wins were achieved and communicated to everybody. In this way,

commitment of senior management as well as workers was built.

Key champions were appointed and were responsible for training of different sections

and to do the benchmarking. Competitions were used extensively to promote the 20

Keys.


The radar chart score has improved from 25.5 to 42.1 points.

A 100-day competition was used to improve productivity, quality, cost and lead time. The

quality improvements ranged from 2% to 80 %, the cost improvements from 12% to 66%,

lead time from 4% to 107%, number of suggestions from 3% to 433% and productivity

from 11% to 56%.

87

High levels of energy was experienced and a participative learning organisation was

created.

Transparency was achieved through extensive use of visual management and teamwork

improved significantly.

88

3.24 GILETTE CO, GERMANY

3.24.1 Background

Gillette is Europe’s largest manufacturer of blades and razors. It has the production

capacity of more than one billion blades per annum. The company employs 1040

employees in Berlin.


Gillette’s strategic business direction is “to be the very best competitor among the blade

factories in the Gillette North Atlantic Group in the year 2000”. In order to achieve this

they will focus on sharpening their competitive edge, mastering high technology, creating

a lean organisation and creating high performance individuals. They believe the 20 Keys

will assist them in this strategic initiative.

Gillette’s strategic field of actions is to take action with regard to the new relationship

between technology responsibility and line responsibility, group/teamwork, coaching and

TQM.


Gillette believed that the 20 Keys Programme was a comprehensive development

concept and they integrated it on all levels through Key promoters, Key process owners

and Key appliers.

They selected 35 Key promoters and conducted a multilevel meeting with approximately

80 participants (executives and key promoters). Four Keys, namely Keys 1, 2, 3,and 9

were selected to be implemented first and comprehensive action plans were drawn up.

The Key promoters were trained and in turn, trained the others.


Although Gillette has only started very recently, big improvements in areas of lead time

and productivity improvement has already been achieved.

89

4 Study Mission Delegates

Company Name Title Tel No Fax No E-mailAECI Mr Hendrik Koornhof

Mr Joe Tau

Distribution Manager

Section Manager

606 3694082 783 06516063244

606 3225

606 3069

[email protected]

[email protected] Bakeries Ltd Mr Nick Penstone Human Resources Director 820 0044 820 0250 [email protected] Industries Mr Johan Nieuwoudt Senior Factory Manager 083 326 2078

857 1020857 1552 [email protected]

Columbus Mr Koos BothaMr Simon Prinsloo

Manager : TrainingManager: Cold Products

0132 47 9111083 631 5815


Early Bird Farm Mr Arnold PrinslooMr Stefan Vermaak

Manager: HRProject Manager

316 34200832529078

316 4133316 4029

[email protected]

Karbochem Mrs Ina SwanepoelMr Frans Labuschagne Mr Hennie de Klerk

20 Keys FacilitatorProduction Manager Financial Coordinator

016 970 1833016 970 171103431 70 1172

016 973 3002016 970 180103431 701 383

[email protected]@karsasol.senchem.co.za [email protected]

KWV Mr Charles Whitehead Specialist: Training & Development 021 807 3168 021 807 3412 [email protected] WC Mr Spencer Rhoda Quality Assurance Manager 021 507 6700 021 54 4293 [email protected] Mr Kobus de Jager Executive Director 021 950 1300 021 945 1902 [email protected] Mr Jeff Wright

Mr Gert van HeerdenManaging DirectorConsultant

706 7897 706 7657 [email protected]

Minpro Mr Johan de WaalMr Gary Highcock

Service Manager: TransportConsulting Engineer

01456 97062083 627 0645

01456 9727401456 97274

[email protected]

NCP Mrs Aartie GrobbelaarMr Dylan PotgieterMr Jan Schlebush

Quality ControllerTraining Leader (North)Site Leader

921 3203921 3110031 902 5655083 655 3646

921 3146976 4207031 579 1541

[email protected]@[email protected]

ODI Barry VenterJohan BenadieRoland RohrsHerman Rolfes 083 448 5089 012 349 1913

[email protected]@[email protected]@lha.co.za

OIM Mr Tjaart Minnaar Director 083 675 0587021 913 2222


Rothmans International Mr Johan Schneider Training Manager 021 872 1851 021 872 7327 [email protected]

90

Company Name Title Tel No Fax No E-mailSamancor Mr Syd Absolom & Mrs Divisional Manager: Chrome Mines 378 7246 378 7397 [email protected] Mr Billie de Beer Group HR Manager 378 7140 378 7146 [email protected] Mrs Marie-Louise McLaren

Mr Francois Ozrovech & MrsMr Jan Erasmus

Firstline Manager: Policy Service Training ManagerProject Manager

012 310 0255021 947 9111021 975 0741

012 310 0668021 947 6593021 975 0741

[email protected]@[email protected]

Santam Mr JAP van der MerweMr Nico Swart

GM: HRSenior Manager: Manpower

021 915 7000 021 914 0798021 914 0709

[email protected][email protected]

Sappi Forests Mr Greg Ellis Project Manager 0331 47 3666082 568 0117


Sappi Forests Mr Marius Krijt Forester 013 734 4551082 807 1062

013 712 3782013 734 4556(n)

[email protected]

Sasol Coal Mr Hermann Wenhold Manager: Sascoal Engineering 017 614 5309 017 614 5484 [email protected] Harvest Mr Greg Anderson Operations Director 022 701 4248

(4104)022 714 3555 [email protected]

Tiger Milling Mr Ockert van der Merwe Human Resources Director 820 0111 820 0254 [email protected]

Company Name Title Tel No Fax No E-mailPittards plc Mr Richard Thurston Operations Director 0944 1935 474 321 0944 1935 427 145 [email protected] plc Mr Michael Sibley Production Manager 0944 1935 474 321 0944 1935 427 145 [email protected] to Growth Mr Joe Booth Managing Director 0944 191 420 6777 0944 191 420 6789 -

Company Name Title Tel No Fax No E-mailRepublic of Moldovo Mr Ion Tanase Minister of Industry & Commerce 09373 2 233556 09373 2 222473 -Competitiveness & Productivity Center

Mr Gheorghe Efros Executive Director 09373 2 224098 09373 2 222778 [email protected]

91

Company Name Title Tel No Fax No E-mailPanskus ODI Deutschland

Mr Gero Panskus Managing Director 0949 202 371 520 0949 202 371 5299 [email protected]

Panskus ODI Deutschland

Mrs Angelika Panskus Director 0949 202 371 520 0949 202 371 5299 [email protected]

Panskus ODI Deutschland

Dr Frank Thieme Senior Consultant 0949 202 371 520 0949 202 371 5299 [email protected]

Panskus ODI Organisationtraining

Dr Heiner Mählck Managing Director 0949 202 371520 0949 202 3715299 [email protected]

Siemens AG Mr Jan Barta Plant Manager 0949 9621 80 2457 0949 9621 803275 [email protected] AG Mr Winfried Popp Board Member 0949 2191 671414 0949 2191 671975Barmag AG Mr Daniel Paar Personnel Development 0949 2191 671619 0949 2191 671358 [email protected] AG Dr Michael Schopen Division Manager 0949 2191 671540 0949 2191 672736Barmag AG Mr Manfred Beuse Division Manager 0949 2191 671544 0949 2191 672432Kuhnke GmbH Mr Christian Freerks Division Manager 0949 4523 402262 0949 4523 402680Sulzer GmbH Switzerland

Mr Anton Leidinger Strategic Planning Manager 0041 52 2624508 0041 52 2620024

Managementberatung Mr Lothar Lehrmann Consultant 0949 4524 74007 0949 4524 74008Gillette GmbH Mr Olaf Günther Project Manager 0949 30 75641282 0949 30 7511098 [email protected] Translation Mr Wolgang Mittelhäuser Translator 0949 2327 322625 0949 2327 322645 [email protected]

92

5. SUGGESTIONS FOR THE EUROPEAN INTERNATIONAL 20 Keys CONFERENCE AND STUDY MISSION (made by delegates at the end of the study tour)

Networking opportunity

Delegates need to meet and network from the beginning of the tour.

Make more time for sharing of learning points. Create opportunities to hold

informal discussions.

Establish a formal network of companies and individuals that can share their

experiences, ideas and learning points through bulletins, newsletters, Internet

and a 20 Keys user conference.

Make time to discuss failures and learning from failures.

Approach somebody from another company to do an evaluation of your own

company.

Company visits

Reduce travelling time and walking distances. Have a better balance between

travelling time and company visits.

Try and arrange more food company visits.

More time should be spent on visiting plants. Try and structure the factory visits

more effectively. More in-depth discussion of 20 Keys implementation should be

held.

Make time to visit the German winelands (during the 1999 20 Keys Conference

in Germany).

Split into groups, have a team leader and a scribe. Task every member to learn

more about a specific Key or area of expertise and integrate afterwards.

Conference and presentations

Standardize the format of presentations.

Include input or a presentation from unions and a managing director of a

company.

Spend more time learning about specific Keys.

Tour group

Take middle managers and union representatives on the study mission.

93

ANNEXURE: SUMMARY OF THE 20 Keys

Content Page

What is the 20 Keys Programme (or PPORF, Practical

Programme of Revolution in Factories)?

2

20 Keys Relations Diagram 3

Benchmarking 4

The 20 Keys Radar Chart 5

Synergistic Power of 20 6

Improvement aims and the international awards 7

Total employee understanding and involvement 9

Implementation 10

Concise summary of critical concepts and techniques 15

Improving businesses across the world 22

1

1. What is the 20 Keys (or PPORF) Programme?

A Global Best Practices Workplace Improvement Programme:

Comprising 20 very practical key methods required to strengthen the

organisation's delivery system

Utilising simple drawings (and checksheets) to:

benchmark the organisation against best practices in the world

compare units within a group (or work units within a company)

Recognising and respecting what the company has achieved to date

Creating an image (or vision) throughout the organisation of what can be

achieved (promote stretch goals)

Enabling every unit in the organisation to set and achieve specific improvement

goals

Providing a methodology to achieve top management's strategic goals in the

workplace

Involving all employees in the accomplishment of the superordinate goal - a 20

point improvement in 4 years to:

double productivity

reduce defects by 80%

reduce work-in-process by 50%

Integrating all the best improvement methods to eliminate waste

Focusing on making products and services better, faster and cheaper

Energising and motivating employees to achieve improvement goals and ensuring

goal alignment of the whole organisation.

2

2. 20 Keys Relations Diagram

1112

16

5

4

8

15

1310

19

18

17

6

14

7

91 20

32

BetterQuality

Faster Through-put

Cheaper Cost

Strengthen And

Energise the

Workplace

Key 1: Cleaning & OrganisingKey 2: Rationalising the System / Goal AlignmentKey 3: Small Group ActivitiesKey 4: Reducing Work-in-ProcessKey 5: Quick Changeover TechnologyKey 6: Kaizen of OperationsKey 7: Zero Monitor Manufacturing /ProductionKey 8: Coupled Manufacturing /ProductionKey 9: Maintaining Machines & EquipmentKey 10: Time Control & CommitmentKey 11: Quality AssuranceKey 12: Developing Your SuppliersKey 13: Eliminating WasteKey 14: Empowering Employees to Make ImprovementsKey 15: Skill Versatility and Cross TrainingKey 16: Production SchedulingKey 17: Efficiency ControlKey 18: Using Information SystemsKey 19: Conserving Energy & MaterialsKey 20: Using Technology for Strategic Advantage

3

3. Benchmarking

3.1: The Five Levels

There are five levels in each of the 20 Keys.

These five levels are explained in a pictorial map of each Key as well as in a

checksheet format

By using the 20 Keys, 5-point multi-industry, international benchmarking system, the

organisation or department or a section of the organisation can be evaluated and an

overall 20 Keys score determined.

The lowest level score is 20 x 1 = 20 and the highest possible score is 20 x 5 = 100.

The average South African company scores about 30.

4

3.2: The 20 Keys Radar Chart

A 20 Keys evaluation should be made by most managers as well as a representative

sample of employees or through a thorough audit at least twice a year. This evaluation

is then presented in the form of a radar chart presenting the constitution or capability of

the organisation. See example below.

Current Ideal

1: Cleaning & Organising 2: Rationalising the System / Goal

Alignment 3: Small Group Activities 4: Reducing Work-in-Process 5: Quick Changeover Technology 6: Kaizen of Operations 7: Zero Monitor Manufacturing

/Production 8: Coupled Manufacturing /Production 9: Maintaining Machines & Equipment 10: Time Control & Commitment 11: Quality Assurance 12: Developing Your Suppliers 13: Eliminating Waste 14: Empowering Employees to Make

Improvements 15: Skill Versatility and Cross Training 16: Production Scheduling 17: Efficiency Control 18: Using Information Systems 19: Conserving Energy & Materials 20: Using Technology for Strategic

AdvantageTotal

Average% Improvement

1.72.1

1.71.91.51.51.51.61.91.51.81.61.11.1

1.82.51.71.81.52.3

33.91.7

59%

2.72.7

2.72.72.72.72.72.72.72.72.72.72.72.7

2.72.72.72.72.72.7

53.92.7

5

4. Synergistic Power of 20

The purpose of benchmarking is to determine where you are today in terms of global best

practices and where you would like to be tomorrow. In determining where you are and in

making the transition, the 20 Keys provides the company with practical simple steps and

stresses the synergistic effects created by the interrelationships of all the Keys.

Sometimes called the “Power of 20”, the 20 Keys taken together “revolutionise” organisations

in a logical, step-by-step and balanced way. Single focus initiatives do not have the power to

sustainable improve organisations. Single focus initiatives are like single beanstalks that are

blown away easily by a strong wind.

The 20 Keys together will build a strong

constitution enabling the company to compete in the world and aim for

international awards (see page 8)

6

Gold

Silv er

Bronze

5. Improvement aims and the international awards

The overall aim of the 20 Keys is to improve the long term sustainable competitiveness,

market share, and profitability of the business by focusing on the following specific

improvement objectives:

Productivity

Quality (Better)

Cost (Cheaper)

Delivery service (Faster)

People Commitment

The first overall company award is the Bronze prize which can be achieved if the

organisation realizes the following:

Double Productivity

Reduce defects to less than 1/5

Reduce WIP by 50%

65 Points in 20 Keys Evaluation

Stable Level 3

The international awards and their requirements are graphically outlined on the following

page.

7

8

20 Keys Overall Development Process

4Ss Level 3Workplace

4Ss Level 3.5Workplace

BRONZEAWARD

4Ss Level 4Workplace

SILVER AWARD

4Ss Level 4.5Workplace

GOLD AWARD

4Ss Level 4Factory

4Ss Level 4.5Factory

100 Points on Key 1 ChecksheetAt least level 3 in the other 19 Keys (Key 1 is complete, so operators can start operations empty handed.)Kaizen flow is complete

Over 85 points on Key 1 ChecksheetAll desks are "Model Desks"Over 55% "Single File"All "Stores" have control boards

Over 70 Points on Key 1 ChecksheetAuthorised "Model Desk"Authorised Over 10% of "Single File" or "Single Changeover""Store" has been completed

Triple ProductivityDefect Rate reduced to less than 1/10Work in Process reduced to less than 1/4100% Goal achievementOver 75 Points on 20 Keys Evaluation ScoreStable Level 3.5 +Coupled Manufacturing / Processing completeConstitution developed to quickly respond to changes

Double ProductivityDefect rate reduced to less than 1/5Work in Process reduced to less than 1/2Over 65 Points on 20 Keys Evaluation ScoreStable Level 3+Over 95% Goal achievement

BRONZE AWARD

SILVER AWARD

6. Total employee understanding and involvement

Inherent throughout the 20 Keys is the involvement, training and motivation of all

employees from top to bottom.

Prof. Kobayashi writes:

“Without individual and organisation alignment, without understanding and training

of all the people, without responsibility and authority at every level, no meaningful

and sustainable improvement can be made in organisations. People alone can

assure success. The 20 Keys programme was therefore designed not only for

clever people, but also for all to understand. It is a methodology which ensures that

everyone will work together positively towards common goals in the interest of the

business.”

“When all employees are aware of the company’s position in relation to other

enterprises a true feeling of competition is developed and they will do whatever they

can to win. Management and workers will co-operate in their efforts to raise quality

and productivity.”

9

7. Implementation

The five stages of implementation can be graphically summarised as follows:

Stage 1 is graphically summarised on the next page

(Stages can take from one to two years)

10

20Keys

Stage 1

Stage 2

Stage 3

Stage 4

Stage 5

Growth & Expansion

Institutionalisation & Stabilisation

Promotion & Wider

Application

Integrated Implementation

Preparation & Training

Focus:Challenge for undisputed market leadership, international silver (and gold) award and trebling of productivity

Focus:Understanding and buy-in and focused implementation

Focus:Realising results through synergies between the keys

Focus:Realising results through application also in suppliers

Focus:Sustained performance and doubling of productivityChallenge for international bronze award

20 Keys Implementation

Choose priority keysAppoint project manager and coachesFinalise promotion organisationTrain coachesTeach and implement one Key at a time.

Orientate & Benchmark

5

4

3

2

1

12

3

4

5

6

7

8

9

1011

12

13

14

15

16

17

18

19

20

Stage One: Preparation & Training

11

7. Implementation (Cont.)

The common implementation techniques for every Key are summarised below:

Two planning and review instruments are critical in the process. They are:

One-page Action Plan format – example on the following page; and

Goal Achievement Matrix – example on page 60.

Train and

Benchmark

(Multi-level)

PLAN

DOACTION

CHECKIMP

LE

ME

NT

AT

I ON

12

14

Goal Achievement Matrix (2nd Six Months)

KeySection

1 2 3 4

Key 1

Key 2

Key 3

Key 4

Key 5

Key 6

Key 20

GoalAchievem entColour

= >80%

= 50-79%

= <50%

8. Concise summary of critical concepts and techniques

All of the concepts and techniques referred to below are explained in or referred to in the following material:

Pictorial 20 Keys Map Book 20 Keys Text Book 20 Keys Two-Volume Manual Facilitators Manual Training Transparencies

20 Keys20 Keys

Programme

In specific client companies, this summary is further adapted to reflect the unique concepts of the company within its industry.

Critical Concepts Techniques

Key 1: Cleaning and Organising

Cleaning Organising Making work easy Visual workplace Establishing pride in the workplace

KEY MEASURE: - CHECKSHEET SCORE

- 4S AWARDS

4S1 process with Key 1 Checksheet Modapts (Modular Arrangement of Pre-

determined Time Standards) and ergonomics to make work easy

6 Step improvement process (allocate responsibility area, implement workplace patrols/reviews, train teams in Key 1, develop action plans, review progress, celebrate success)

Visual management

1 For the “5thS” see Key 10.

15


Key 2: Rationalising the System / Goal Alignment

Streamline organisation structure Defining mission, values and goals Deploy and cascade mission, values and

goals down to all levels (alignment) Align and ensure objective achievement Align “top down leadership and bottom-up

participation” Overall 20 Keys implementation and

improvement process key

KEY MEASURE: - CHECKSHEET SCORE

- GOAL ACHIEVEMENT MATRIX

Key 2 Checksheet Organisation structure design Performance measurement system (PQCDSM2) Visual management Multi-level meetings (different types) and

communication Three item kit (basic policy, goal achievement

image, overall renewal programme) Action planning, PDCA cycle (Plan-Do-Check-

Act) Vector alignment 20 Keys promotion organisation Goal achievement matrix (20 Keys robot

progress chart)

Key 3: Small Group Activities

Teamworking Motivation Communication Mini-businesses and mini-business areas Role of the supervisor / team leader Kaizen suggestionsKEY MEASURE: - NUMBER OF SUGGESTIONS

IMPLEMENTED / PERSON / YEAR

- NUMBER OF THEMES COMPLETE

Key 3 Checksheet SuperVision™ for SuperTeams Coaching

Programme Green areas Mini-business management Visual management Suggestion system Small group meetings (Kaizen teams, daily

team meetings)

Key 4: Reducing Work-in-Process

Reduce work-in-process = everything in the process of converting raw materials into finished goods stock

Work-in-process causes many problems and hides other problems

Understand that work-in-process reduction is the key to cost reduction and easier work

Shorten production lead time Highly integrated with other Keys especially

Keys 5, 8, 16

KEY MEASURE: - WIP REDUCTION

Key 4 Checksheet Eliminating the seven wastes Four step process (create a model / flowchart,

decide what to work on, define the implementation team, implement the improved process)

Kobayashi’s eight rules for reducing WIP (incorporated in the four step process)

Utilises the support techniques of Key 5 and 8 Analysis of the impact on operational

(capacities, changeovers, quality, maintenance, coupling, suppliers, scheduling, etc.) and strategic issues (marketing, sales decisions, forecasting, product range, performance measurement, etc.) on WIP

Make-for-stock and make-to-order philosophies Synchronous production system Bottleneck and buffer management

2 PQCDSM = Productivity, Quality, Cost, Delivery, Safety and Morale/Motivation

16


Key 5: Quick Changeover Technology

Improve flexibility and speed of work Roll out the process via pilot areas Goal of single minute changeover (and single

minute information retrieval) and ultimately single cycle changeover

Changeover time is time from last of good product A to first of good product B

KEY MEASURE: CHANGEOVER TIMES

- PRODUCTION

- OFFICE

Key 5 Checksheet Operation improvement sheet (OIS) (step-by-

step process flow chart) Five step process (analyze the changeover

(with an OIS), move internal operations to external operations, reduce internal operations time, reduce external operations times, standardise with a standard operating procedure)

Man-machine charts Process flowcharting Mashafinger – game Utilise other Keys, especially Keys 7, 11 and 15

Key 6: Kaizen of Operations

Improve productivity by viewing all process from a holistic point of view and eliminating non-value adding work and increasing value adding work

Value analysis of operations/processes Ongoing improvement (based on the standard

operating procedure) Involvement of all people in ongoing

improvement Levels of Kaizen (spot, line, area, volumetric)

KEY MEASURE: PRODUCTIVITY

Key 6 Checksheet Activity flow diagram Process flow diagram Physical flow diagram Operations improvement sheet (OIS) Operations improvement schedule (OISH) Standard operating procedure (SOP) Questioning techniques (5 Why’s, 5W2H, etc.) Five step process (identify and document the

process, Value Analysis (VA) of activities in the process, develop an improvement plan, improve the process, standardise the process (SOP*))

Key 7: Zero Monitor Manufacturing / Production

Eliminate the waste of monitoring Goal of zero defects Roll out the process via pilot areas Self-regulating and self-interrupting equipment

KEY MEASURE: DIRECT - % MACHINE MONITORING REDUCED

INDIRECT - % ONE-PAGE STANDARDS IMPLEMENTED

Key 7 Checksheet Customisation of equipment One page standards (OPS) for indirect

functions Key 5, 14, 15 and 20 plus all other Keys play a

role in building this Key Man-machine charts

17


Key 8: Coupled Manufacturing / Production

Streamlining the flow of material and information throughout the organisation through teamwork between up- and downstream processes and between departments

Communication, functional and physical links between processes

Various coupling methods Highly integrated with other Keys,

especially Keys 4 and 16 Pull vs. push systemsKEY MEASURE: DIRECT - NUMBER OF MODEL

STORES COMPLETED

INDIRECT - NUMBER OF GOLD FISH BOWL MEETINGS HELD / SUGGESTIONS IMPLEMENTED

Key 8 Checksheet Various concepts of coupling including

the “store” and “supermarket” concept Visual management Kanban systems (JIT) Synchronous production systems Cellular manufacturing Goldfish Bowl discussions to improve

flow of information and teamwork between departments

Four step process (determine how processes are linked, reduce inventory levels, reduce coupling points, combine processes)

Key 9: Maintaining Machines and Equipment

Joint venture between operators and maintenance / engineering

Improving the equipment operating rate (EOR) and the overall equipment effectiveness (OEE) rate

Equipment logs and history recording Preventive maintenance of machines /

equipment (roll out process by starting with important machines / equipment)

KEY MEASURE: - EOR (EQUIPMENT OPERATION RATE)- OEE (OVERALL EQUIPMENT

EFFECTIVENESS )- % 3 EVILS ELIMINATED

Key 9 Checksheet Eliminating the three evils (inadequate

lubrication, cleaning and mishandling of equipment)

Preventive maintenance (PM) Total Productive Maintenance concepts Measurement of EOR/OEE Machine / equipment log books,

recording of history Maintenance blueprint (structure, roles

and policies) Checksheets and checklists Improvement maintenance and the power

of the 5Why’s Implementation process (confirm

responsibilities, train teams, develop action plans, do and review progress/replan)

Key 10: Time Control and Commitment

Time discipline and commitment Value adding work habits Team meetings at start of work Positive, friendly work atmosphere

KEY MEASURE: CHECKSHEET SCORE

% ABSENTEEISM

Key 10 Checksheet Morning meetings Visual management (attendance charts,

boards indicating whereabouts, work plans, etc.)

Agreement of time policies (team leaders discussions)

Good work order rules (respect, consult, communicate, report)

18


Key 11: Quality Assurance

Supply chain Internal customers (next process is the

customer) / External customers Support and link to ISO9002 Quality at source through proper training,

tools and support Measurement, quick feedback,

communication (time to detect/time to correct)

Goal is zero defects

KEY MEASURE: - DEFECTS

- ABNORMALITY RATE

- FROM LEVEL 3.5 UPWARD- SIGMA

Key 11 Checksheet Defining customers (customer

relationship chart) Process for customer satisfaction

management Seven quality control tools (pareto,

fishbone, process chart, histogram, scatter diagram, run chart, SPC)

Mistake-proof devices and systems SOP’s Three pillars of quality assurance (source

inspection, 100% inspection, immediate action (TTD, TTC))

Two point inspection systems PDCA cycle

Key 12: Developing Your Suppliers

Supply chain Internal suppliers (upstream process is

the supplier) External suppliers Supplier development to strengthen the

supply chain

KEY MEASURE: SUPPLIER DEFECT LIMITS % DELIVERY DELAYS % NO OF SUGGESTIONS TO SUPPLIERS

/ UPSTREAM PROCESSES

Key 12 Checksheet Defining suppliers (supplier relationship

chart) Process for supplier development

management Value engineering (VE) and value

analysis (VA) Ten day supplier development

programme Introduce / assist with improvement of

supplier workplaces / organisations (through inter alia 20 Keys)

Key 13: Eliminating Waste

Culture of eliminating wasteful human activities (e.g. search, walk, wait, etc.)

Value adding work rate Measurement, then “mining” out waste

(opportunities)

KEY MEASURE: ACTUAL (VALUE ADDING) WORK RATE %

Key 13 Checksheet Measurement (value adding work rate) Activity sampling (by team members

themselves) to identify types and magnitude of wasteful activities

Treasure map (indicating opportunities for reducing wasteful activities)

Visual management

19


Key 14: Empowering Employees to Make Improvements

Importance of utilising creativity of people

People implement own ideas Roll out process of Kaizen / improvement

corners in the workplaceKEY MEASURE: NO OF IMPROVEMENT

CORNERS

LEVEL OF UTILISATION (PERSON / Year)

Key 14 Checksheet Kaizen / improvement corners Empowerment model (Direction, Support,

Ownership) Skills / Safety training (Key 15)

Key 15: Skill Versatility and Cross Training

Visual skill evaluation and needs analysis Skills versatility through cross training Making work easier to facilitate cross

training Flexibility for the organisation,

development opportunities for people Start within teams, then across teamsKEY MEASURE: SKILL LEVEL % IMPROVEMENT

(SKILL MATRIX)

Key 15 Checksheet Visual management Skills matrix Skills development plan and schedule Skills competence graph Rule of 3 SOP’s Making work easy (through other Keys)

for people to learn additional skills

Key 16: Production Scheduling

On time delivery of products and services Flexibility to accommodate fluctuating

market requirements Planning, scheduling and control of all

resources in the process of converting raw materials to finished goods

Highly integrated with other Keys, especially Keys 8 and 18

KEY MEASURE: DIRECT: ON-TIME DELIVERY %INDIRECT: DELIVERY TIMES IMPROVEMENT %

Key 16 Checksheet Visual management Measurement of delivery performance MRP concepts Backwards and forward scheduling Bottleneck / constraint scheduling (Drum-

Buffer-Rope method) Planning boards, Gantt charts

Key 17: Efficiency Control

Efficiency = Actual output / standard Output (for physical units) and efficiency = Standard man hours / Actual man hours (for time)

Motivate people with realistic targets, involve them in setting standards

Time standards (rough overall estimates product families operations)


EFFICIENCY % (TWO FORMULAE)

Key 17 Checksheet Measurement of efficiency Efficiency control Visual management Setting of time standards

Direct observation Rated observation Compared method (MTM, Modapts,

PMTS) Actual results

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Key 18: Using Information Systems

Use of information systems to strengthen the constitution/capacity of the business

Simplify and reduce waste before computerisation

Levels of integration (stand alone to highly integrated : office, production, suppliers, customers)


Key 18 Checksheet Growth in information systems and use of

micro processors are supported by all other Keys

Strategic Information Systems strategy Office automation Flexible manufacturing systems (FMS) CNC and PLC systems

Key 19: Conserving Energy and Materials

Improving material yield Cost saving culture Start within existing infra structure then

use advanced technology Link to ISO 9014 limit waste of resources

and waste of the environment

KEY MEASURE: YIELD IMPROVEMENT

ENERGY / COST SAVING

Key 19 Checksheet Visual management (costs, graphs,

slogans, suggestions, etc.) company wide improvement initiative

Measure and improve material yield / material conservation or preservation

Cost awareness campaigns Small group activities (Key 3) Overall strategy to conserve energy and

materials and to improve yield Advanced technology

Key 20: Leading Technology / Site Technology

Site technology (“software”; people skills, knowledge, experience, speed at which new technology/products are developed in-house)

Leading technology (“hardware”, equipment, machines, layout, infrastructure)

Identify relevant areas to compete globally

Benchmark against own industry standards

KEY MEASURE: CHECKSHEET SCORE (CRITICAL TECHNOLOGIES)

Key 20 Checksheets Identification of core technologies (site

and leading) Development of checksheet to

benchmarking on core technologies Action planning to improve core

technologies Action planning to ensure the transfer of

site technologies to new generations

-oOo-

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9. Improving businesses across the world

The 20 Keys improvement system has spread to many countries and companies across the globe.

Countries include:

- China

- Germany

- Holland

- Hong Kong

- Japan

- Korea

- Malaysia

- Mexico

- New Zealand

- Singapore

- South Africa

- Thailand

- U S A

- United Kingdom

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report on japan visit nov 1998

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