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Developing a Continuous Improvement Culture

A Management g Perspective p

What is CI?
A long term people & process oriented programme Customer driven Using U i d data t t to i improve & set t standards t d d Using employees to work together to improve

So that CI becomes thats the way we do it here

What are the benefits of CI?


Typically 25 to 30 good suggestions per employee, per year, and to have over 90% of those implemented implemented. (Toyota had 75 75,000 000 suggestions from 7,000 employees and 99% were implemented). Small improvements p add up p to major j benefits - improved p productivity, improved quality, better safety, faster delivery, lower costs, and greater customer satisfaction. Employees E l fi find d work kt to b be easier i and d more enjoyable j bl - resulting lti i in higher employee moral and job satisfaction, and lower turn-over. CI reduces waste in areas such as inventory inventory, waiting times times, transportation, worker motion, employee skills, over production, excess quality and in processes. CI improves space utilisation, product quality, use of capital, communications, production capacity and employee retention.

The winning formula

E=QxA
A

Effectiveness = Quality of problem solving skills x cultural Acceptance

E=QxA

Quality of problem solving skills


Like any new activity people have to practice to get good at it Training in problem solving skills Facilitators to lead projects 1% 1%-2% 2% of workforce Time and resources to make improvements and develop skills critical mass >50% of workforce involved Coaching, support and feedback system
Manager/strong partner I think and solve problems

Because they do

Because they dont

I dont think or solve problems Operator/weak partner

Problem solving tools


Kaizen/Lean People/Team based structured modules Elimination of waste Six-Sigma Structured data centric problem solving methodology Elimination of variation
D efinetheexactfocusoftheimprovementproject M easurecurrentperformanceagainstagreedtargets A nalysethedatatofindthecausesofvariation I mprovetheprocesstofixthecausesofvariation C ontroltheprocesssothatitstaysthatway

WORLDCLASS
CONTINUOUSIMPROVEMENT PROBLEMSOLVINGTOOLS
CO ONTINUOUSWO ORKFLOW ANDLOWINVE ENTORY Q QUICK TOOLCHA ANGESTO INCREASEM/CC CAPACITY EFFECTIVEEQUIPMENT ALWAYSAVAILABLE RIGHTFIRSTTIME EVERYTIMEQ QUALITY

WORKFLO OW

SMED D

TQM

WORKPLACEORGANISATION ELIMINATIONOFWASTE

TPM

Waste Elimination

WASTE

Over Production

Waiting

Transport

Inefficient Process

Inventory

Operator Motion

Defects

Operation Delay Inspection Storage Transportation


Man Method

55555

Why? Wh ? Why? Why? Why? Why?

Material

Machine

5Core C Modules M d l

P bl Solving Problem S l i Tools T l

Workplace Organisation
5SHousekeeping StandardOps. VisualControls SkillM Monitoring it i
SIMPLIFY
YES

Samedi

18

25

SO RT

Establish norms 5SHousekeeping and d respect them h


11 24 4 10 17 Vendredi 3 Jeudi 2 9 16 23 15 Mercredi 22 29 30 31 1 8 Mardi 7 14 21 13 Lundi 6 20 27 28 Dimanche 12 19 26 5

EN HT IG RA ST

NO
1 2 Pro Pro Pro 4

5
SUSTAIN
P1 P2 P3 P4

4 IFY ISE PL D M R SI DA AN ST

1
50 recipes
Example : Skills matrix
ELECTRO MECHANICAL SPECIALISTS
Work Station #'S Work Description Dorothy H. Ellen B. Pat M. LeRoy W. Steve H. Bill B. Lawrence D. Diane M. Rhea F. Glenda M. Legend :
Knows Basics Training Can Do With Help Can Do Without Help Can Teach Someone Else Can Improve the process

ONE recipe
documented

Visual Controls
Form # XXXX Form # XXZZ Form # YYXX Form # ZZXY

4101
Stuff Channel

4102 4103
Stuff Top Shelf

4104
20 GA Harness

4105
14,16, 18 GA Harness

4106
18/20 Harness

4107
18 GA Asb. Harness

4108
PC Brd Harness

4109
Heavy Wire

4116
Paint

4116
SilkScreen

4118
Pack Out

4111
Tap

Mat'l Handling

Tie Wrap

Licenced

50 results (deviations) ( )

Quality the first time ( variation) (no i ti )

StandardOps.

MAX MIN

SW EE P

WorkFlow
Fishbone Line

PullSystems 1PieceFlow TaktTime Kanban Cells

U Line

L Line Back to Back Lines I Line

2
Zeit pro Tag Taktzeit = Abrufe pro Tag

Kanban Signal g
To request a new delivery
KANBAN

SMED - Quick Tool Changeovers


400

200 100 10

S ingle M inute E xchange of D ies, tools


& fixtures

Set-up is:

3
External E t l Before External Before Internal External After

Internal

External After

Total Quality Management / Six-sigma


x
ErrorProofing g CostofQuality MSA GR&R Capability/SPC Reliability Regression Designof Experiments H Hypothesis th i ANOVA 4
WARNING Indicates an error situation requiring intervention CONTROL Stops production Prevents mistakes
Bip! Bip Visual aids 12
120 V 1.5 A

Ppk Cpk
3 3

Listen up! Line 12 is stopped !!!

DOE
HARDNESS
MIN MIN MAX MAXAVG MEAN AMLC L AMUC L AVG RNG AVG S D SDS TDEV S DLC L S DUC L

678

975

832

740

924

81

30.6

13.3

-9.3

70.6

LOW HI 670 N/A

SCALE HV10
FREQ

% of Turnover

Failure Failure Appraisal Appraisal


Prevention

950 Hardn e ss HV 850


UCL
900

825

750 650 550 450


1 5 9 13 17 21 25 29 33 37 41 45 49 53 57 61 65 69 73 77

LCL AVG MEAN MEAN

750

675

600

525

450 0 5 10 15 20 25

FREQ

Prevention

80.0 Hard ne ss HV
95

60.0 40.0 20.0 0.0


1 5 9 13 17 21 25 29 33 37 41 45 49 53 57 61 65 69 73 77

UCL LCL AVG SD STDEV

80

65

50

35

20

5 0 2 4 6 8 10 12

RegressionAnalysis

MSA GR&R

Total Preventative Maintenance


Effectiveness / Capability
Autonomous Preventative Predictive
TPM
Date of Inspection Department Team Machine Name & Number Description of Malfunction Corrective Action

INSPECTION TAG No.:


Inspector

Planned Date Person Responsible of Action

Planned Action verified by: Completion Date

Preventive maintenance Autonomous maintenance Reactive maintenance

Predictive maintenance

time

9Idling and minor stoppages 9Equipment failure 9Tool T l changes h 9Scrap/rework 9Start-up losses
Simplify Access...

9Set-up/ adjustments
F

Calibr 05/87

Numerous bolts

Hinges

Pear holes

Grooves

9Reduced speed

Handles

Windows

TPM = elimination of waste + continuous improvement

Tools - Problem Solving Tools


60 40 20 0
100% 80 60 40 20

55555

ABCDEF

Pareto80%/20% Valuestreammapping

Why? Why? Why? Why? Why?

5WhyRootCause
FOR
Decision Start process Decision Operation No Yes No Yes Operation

AGAINST

Input

Operation

Output

End

8D

Operation Delay Inspection Storage Transportation

Operation

Operation

Man

Method

Forcefield

//// ///
Material Machine

?
Brainstorm

Processmapping

Fishbone

TallyChart

E=QxA

Acceptance within organisation

Management commitment M Management t support t system t A mission/strategy/objectives/targets to aim for Delegation of responsibilities and authority to sections Training in problem solving skills Time and resources to make improvements and develop skills Facilitators F ilit t t to lead l d projects j t Communication and feedback system Learning dissemination system

Dependency Loop
M Manager/strong /t partner t Ithinkand solveproblems

Becausethey ydo

Becausetheydont don t Idontthinkor solveproblems Operator/weakpartner

Learnedhelplessness &lowesteem

Both must change

Solution to Dependency Loop


Manager/strong partner I think and solve problems

Dont Don tsolveotherpeoplesproblems!!! Set smart objectives Support & guide Coach
Situation Options C Consequence Select

Because they do

Because they dont don t

I dont think or solve problems Operator/weak partner

Learned helplessness & low esteem

Support Guide Solve Problems Learntocooperate& t tb trust bygiving i i each hother th newexperiences

Frustration drives people back in to dependency


13/09/2008 Managing Kaizen 16

Bolmans Change Model


1.DenialStage Numbness Reactioninternal Disbelief Past 4. Commitment New External/Environment objectives Actionplans Denial Commitment Teamwork Future
Resistance Exploration

2.Resistance Anger Anxiety Fear Verbalreaction

Internal/Self

3.Exploratory Beginto accept tthe th inevitability Negotiation Lookingfor benefits

Traditional Method vs Kaizen


Thetraditional method
AnANALYSISCOMMITTEE makes RECOMMENDATIONS MANAGERS takethe DECISIONS AnIMPLEMENTATION COMMITTEE implements CHANGES TheEMPLOYEES ADAPT tochanges

TheKAIZEN method
AMULTIDISPLINARYTEAM analysesthesituation, takesthedecisions, takesactionsand implementsthechanges
Weeks and months

AFEWDAYS

Fire Fighting vs CI
Fi Fighting Fire Fi hti Spiral S i l
ManyProblems, waste, t rework k

C ti Continuous I Improvement tS Spiral i l


Veryfew problems

Few Improvement efforts

Firefighting

Continuous improvement

Timetothink about improvements

Focuson present

Focusonfuture

The Route to CI
1. Establish the need 2. Create a sense of direction 3. Build a supportive climate 4. Launch the initiative 5. Maintain the momentum

1. Establish the Need


Benchmarking L Long range f forecasting ti Highlight declines Share market, company performance and competitor information with everyone S.W.O.T./S.T.E.P. S W O T /S T E P analysis l i

Show need in a clear and meaningful i f l way

2. Create a Sense of Direction


Create a vision - paint a picture/anecdotes
strategy values & behaviors goals

Involvement I l t in i & communication i ti of f vision i i Budget plans - how does it relate to individuals Show the whole plan not just their bit Show how the resources are to be used Keep reinforcing the vision
mission statements news letters CI boards mention at every opportunity

3. Build a Supportive Climate


Define roles & criteria for success Communicate values, beliefs & behaviors Get managers to adopt the smart coaching style Develop alternative job roles for middle management Demonstrate management commitment Seek out and council worried employees

Some Turn Offs


Wet Blankets
I am too busy right now now. Its a good idea, but the timing is wrong. It is not in the budget. g We dont do it like that here. Theory is different from practice. Thats a good idea BUT... Isnt their something else for you to do? It doesn doesn't t match corporate policy policy. It isnt our business. Let someone else think about it.

People are not the problem. Blaming them will not solve the problem. The answer is to make people p p p problem p solvers!

4. Launch the Initiative


Not big bang and fizzle out! Start small and build
Training appoint a coordinator start with one initiative see it through!

Publicise initiatives
announcements display boards
KAZEN
Processes:
Opportunities
For Waste Elimination
Who
Date completed Date

Praise successes & good tries


Opportunity

INFO KAIZEN
Improvement

Body text

SMED

Nonconformance

Lead-time

5. Maintain Momentum
Reinforce as often as possible Communicate results Measure progress Give support pp - both financial & verbal Start new initiatives based on the theme
refresh notice boards communicate in other ways ask team to give presentation appoint new facilitators start t t next t phase h

Management commitment & stamina

Sabotage g to enthusiasm
Enthusiasm p Co-operation Co-operation with assistance Acceptance g Passive Resignation Indifference Apathy Doing only what is ordered Regressive behaviour Non-learning Protests W ki t Working to rule l Doing as little as possible Slowing down Personal withdrawal Committing deliberate errors Spoilage Sabotage

Acceptance Indifference Passiveresistance Activeresistance

Engage the Champions


Champions StrawWatchers Scallywags y g Refuseniks

20%

30%

30%

10% 10%

Convert

Some Pitfalls
The supportive sceptic - lip service only B prepared Be dt to unblock bl k th the l log-jam j Managers get too involved Not setting tough but achievable targets Underestimating resources/effort required to finish i iti ti initiatives - 80/20 rule l Not making it someone's job to make it happen Im I t too b busy spiral i l
ManyProblems, waste,rework

Few Improvement efforts

Firefighting

Focuson present

Next Steps
CI steering group at top level Appoint a coordinator Identify best in class and set targets E t bli h a CI communication Establish i ti & t training i i plan l Complete actions identified on workshop Identify next CI workshop Build systems, procedures & structures conducive to CI Promote CI in your supply base

Achieve Continuous I Improvement t