How to implement lean - Executive overview

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How to Implement Lean/TPS Executive Overview

Thinking win, Win, WIN

How to Implement TPS / LeanExecutive Overview

Marek Piatkowski – February 2017

CAPABILITIES

DEVELOPMENT

Sustainable improvement capabilities in all people at

all levels

PROCESS

IMPROVEMENT

Continuous, real, practical

changes to improve the

way the work is done

Responsible Leadership

LEAN

TRANSFORMATION- Value Driven Purpose -

MANAGEMENT

SYSTEM

Basic Thinking, Acceptance, Mindset and AwarenessPDCA – PROBLEMS SOLVING – GEMBA - SCIENCE

WHAT PROBLEMS DO WE NEED TO SOLVE?


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Introduction - Marek Piatkowski

Professional Background Toyota Motor Manufacturing Canada (TMMC) - Cambridge, Ontario from

1987-1994

TPS/Lean Transformation Consulting - since 1994

Professional Affiliations TWI Network – John Shook, Founder

Lean Enterprise Institute (LEI) – Jim Womack

Lean Enterprise Academy (LEA) – Daniel Jones

CCM/CAINTRA – Monterrey, Mexico

SME, AME, ASQ, CME

Lean Manufacturing Solutions - Toronto, Canada

http://twi-network.com

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The Most Studied Company in the World

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Toyota Production

System(TPS)

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Toyota’s Philosophy - People

The Toyota Production System (TPS) itself is based on the belief that the company that ignores human respect will not endure

People – a company’s greatest asset is its people. Toyota does as much as possible to take care of the employees, recognizing first and foremost the importance of job security

People enjoy their work when it involves trying out their own ideas, mastering new skills and making visible contributions

Teamwork is a foundation of TPS – all employees are required to participate and to follow rules and principles of TPS

Operators who are the most knowledgeable of any manufacturing operation are people who perform that job daily – their involvement is critical to the success of implementation of TPS

“Good Thinking, Good Product” – employees are expected to contribute to the improvement of their own work.

Sakichi ToyodaFounder of Toyota

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Stability

GOAL: Highest Quality, Lowest Cost, Shortest Lead Time

1. Stable Manufacturing Processes2. 100% Quality Parts

Heijunka Standardized Work Kaizen

Just-in-Time Jidoka

Stop the lineand fix

the Problem

Separate man’s work from

machine’s work

ContinuousFlow

Takt Time

Pull System

The Toyota House

Toyota Production

System(TPS)

9

Production should take place with a little inventory as possible,preferably only the one component that is to be processed or assembled next.

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Toyota Production System (TPS)

We never asked Toyota how did they build their house of TPS?

Taiichi Ohno

Credited with realizing

the concept of the

Toyota Production

System.

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What is Lean Transformation?

Lean Transformationof

Tools and Methodologies

Lean Transformationof how we

Think and Manage

Lean does not work for us


Operational Stability

Continuous

Flow

Takt Time

Pull System


Stop and

fix the

Problem

Separate

man’s

work from

machine’s

work

Jidoka

The Toyota House

Just-in-Time


Operational Stability

Continuous

Flow

Takt Time

Pull System


Stop and

fix the

Problem

Separate

man’s

work from

machine’s

work

Jidoka

The Toyota House

Just-in-Time

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Chairman of Toyota Motor Corp. and former President of Toyota Motor Manufacturing, KY

and Toyota Motor Corp.

Toyota’s ChairmanFujio Cho

Three Keys to Lean Leadership

Go See “Senior Management must spend time

on the front lines”

Ask Why “Use the “Why” techinques daily.”

Show Respect “Respect your people.”

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Chairman of Toyota Motor Corp. and former President of Toyota Motor Manufacturing, KY

and Toyota Motor Corp.

Toyota’s ChairmanFujio Cho

“Many good companies have respect for

individuals and practice Kaizen and other TPS

tools. But what is important is having all

elements together as a management system.

It must be practiced every day in a very

consistent matter – not is spurs – in a concrete

way on the shop floor.”

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Lean Transformation in Manufacturing

Life in Manufacturing consists of solving

problems and implementing solutions.

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Toyota’s Philosophy – Manager’s Role

In a true TPS environment decision making process should be made at the lowest possible level of the organization.

Simple, effective solutions are the most effective

A manager’s or supervisor’s role consists of leading problem solving activities in a multi-skilled, cross-functional team environment

Managers role is to make sure that for everything that we do there is a well defined standard process

Continuous Improvement (Kaizen) activities are management responsibilities.

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Two Types of Problems

Sub-standard performance,

abnormal situation

New Standard

New Challenge

1. Daily problems:

deviation from normalitybreakdownquick fixes

2. Long term improvements:

new company objectivesnew expectationslooking for a better long term solution

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CAPABILITIESDEVELOPMENT


all levels

PROCESSIMPROVEMENT





- Value Driven Purpose -

MANAGEMENTSYSTEM



LEANTRANSFORMATION

2016

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What is a Problem ?

A problem is defined as any variation (abnormality) between the actual situation and the standard (Caused Gap) or desired situation (Created Gap)

Problem solving activity is an effort to reduce or eliminate such a variation

All problems must be defined in terms of numbers or data

Key Performance Indicators - KPIsit is not a problem if you cannot define it as a number

“In God we Trust, everyone else bring data” Dr. E. Deming

SAFETY QUALITY DELIVERY PRODUCTIVITY COST PEOPLE

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?

I know LeanEngineering driven

Hobby driven

Knowledge Driven

“So what ?“

Kanban

Leveledschedule

Supermarket

SMED

PullTPMHeijunka

Jidoka

VSM

Lean Transformation

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?

I know LeanEngineering driven

Hobby driven

Knowledge Driven

“So what ?“

Kanban

Leveledschedule

Supermarket

SMED

PullTPMHeijunka

Jidoka

VSM

Business NEEDS driven

1. USE KPIs to understand your Current Status

2. Set goals and objectives

3. Start solving problems

4. Check progressand measureresults

B

A

True North

Lean Transformation

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KPI KPI100%

Target – Key Performance Indicators (KPIs)


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Levels of Support

Level I – Meeting Customer Requirements

The company/ supplier does not meet Customer’s expectations

Main focus – root cause analysis and improvement of Quality and Delivery KPIs

Level II – Creating Operational Stability

The company/supplier meets minimum Customer requirements

Processes are not stable and predictable

Root Cause analysis of all six KPIs – Safety, Quality, Delivery, Performance, Cost and People

Level III – Process Improvements

The company/supplier meets minimum Customer requirements

Process are stable and predictable

KKKKKK – root cause analysis and process Kaizen of all six KPIs

1

2

3


K.P.I.Customer

Safety ___

Quality ___

Delivery ___

Performance ___

Cost ___

People ___

Scorecard or or21 3

1 - Does not have (process/system) 2 - Has it, but does not use effectively 3 - Has it and uses it.

K.P.I.Supplier

Safety ___

Quality ___

Delivery ___

Performance ___

Cost ___

People ___

Scorecard or or21 3

AssessmentSurvey Tool

Quality

Delivery

Compare and evaluate

Assess and Evaluate

Performance

Tracking

Prod. Weeks

OTD

-%

C/M

Today

14 15 16 17 18 19 20 21 22

Prod. Weeks

PPM

C/M

Today

Clarify the Problem

Initial Problem Perception(Large, vague, complicated problem)

The "Real" Problem

Locate Area /Point of Cause

PoC

Direct CauseWhy ?

Cause

Cause

Cause

Cause

Countermeasure

Root Cause

Why ?

Why ?

Why ?

Why ?

Cause

Investigation

Grasp the

Situation

5 W hy ?

Investigation of

Root Cause

Basic Cause & Effect

Investigation

Problem IDRoot Cause Analysis

Support Methodology – Level I

Current Condition: The Company does NOT meet Customer expectations - Quality and Delivery

1

2



K.P.I.Company

Safety ___

Quality ___

Delivery ___

Performance ___

Cost ___

People ___

Scorecard or or21 3

AssessmentSurvey Tool

Safety

Quality

Delivery

Performance

Cost

People

Assess and Evaluate

Performance Tracking

Prod. Weeks

OTD

-%

C/M

Today

14 15 16 17 18 19 20 21 22

Prod. Weeks

PPM

C/M

Today

Clarify the Problem


The "Real" Problem


PoC

Direct CauseWhy ?

Cause

Cause

Cause

Cause

Countermeasure

Root Cause

Why ?

Why ?

Why ?

Why ?

Cause

Investigation

Grasp the

Situation

5 W hy ?

Investigation of

Root Cause


Investigation

Problem IDRoot Cause Analysis

2

3

2

3

2

2

Support Methodology – Level II

Current Condition: Processes are not stable and predictable



STEP 1

STEP 2

STEP 3

STEP 4

STEP 5

Identifying Business Needs

Review and Assess Customer KPIs – Quality and Delivery

Which Internal KPIs need to be addressed:- Safety - Performance- Quality - Cost- Delivery - People

Opportunities Analysis Target Conditions and

Milestones

Building the Foundation

Process Improvements

Cycle Time and Lead Time Reductions

Sustain and Improve

Creating Operational Stability –Predictable Performance

Root cause analysis of problems Visual Controls Roles and Responsibilities Heijunka – leveled production,

reduction of variation Standardized Work Training and Development of

Internal Change Agents

Building TPS Pillars:• JIT – creating continuous

flow of production• Jidoka – stop the Line, fix

the problem Pull System - Information Flow

and Material Flow SMED – Set-up Reduction Information Centers SFM – Shop Floor

Management Team Leader based

Organization

Takt Time - Operational Transformation

Layout improvements Manufacturing Work Cells TPM – Equipment

Maintenance Minimum lot sizes – single

piece flow Reduction of Inventory buffers Employee Engagement –

Quality Circles & Suggestion Program

Closing performance gaps Partnership with Suppliers Removing obstacles to the

flow of work Aligning decision-making

process to respond quickly to changes and problems

Flexible workforce -multiskilled operator

Self-directed Work Teams How to manage in a Lean

Environment Kaizen, Kaizen, Kaizen

Support Methodology – Level IIIStep-by-Step Implementation of Lean Manufacturing

CAPABILITIES

DEVELOPMENT


all levels

PROCESS

IMPROVEMENT





LEAN

TRANSFORMATION- Value Driven Purpose -

MANAGEMENT

SYSTEM



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Steven Spear

H. Kent Bowen

October 1999

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Decoding the DNA of TPS

Four-year study of the Toyota Production System

Inner workings of more than 40 plants in the United States, Europe, and Japan, some operating according to the system, some not

Studied both process and discrete manufacturers whose products ranged from prefabricated housing, auto parts and final auto assembly, cell phones, and computer printers to injection-molded plastics and aluminum extrusions

Studied not only routine production work but also service functions like equipment maintenance, workers’ training and supervision, logistics and materials handling, and process design and redesign

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How to Improve

We found that the key to understand that the Toyota Production System creates a community of scientists.

Whenever Toyota defines a specification, it is establishing a set of hypotheses that can then be tested. In other words, it is following the scientific method.

To make any changes, Toyota uses a rigorous problem-solving process that requires a detailed assessment of the current state of affairs and a plan to improvement that is, in effect, an experimental test of the proposed changes.

With anything less than such a scientific rigor, change at Toyota would amount to little more than random trial and error – a blindfolded walk through life.

Who, What, Where,

When, Why and How

Clarify the Problem


The "Real" Problem


PoC

Direct CauseWhy ?

Cause

Cause

Cause

Cause

Countermeasure

Root Cause

Why ?

Why ?

Why ?

Why ?

Cause

Investigation

Grasp the

Situation

5 W hy ?

Investigation of

Root Cause


Investigation

Grasp the

Situation

Cause

Investigation

Basic Cause &

Effect Investigation

Ask Why 5 times?

Investigation of

Root Cause

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How to Improve

Identifying problems is just a first step. For people to consistently make effective changes, they must know how to change and who is responsible for making the changes.

Toyota explicitly teaches people how to improve, not expecting them to learn strictly from personal experience. That’s where the rule for improvement comes in.

Any improvement to production activities, to connection between worker and machines, or the pathways must be made in accordance with the scientific method, under the guidance of a teacher, and the lowest possible organizational level.

To make changes, people are expected to present the explicit logic of the hypothesis.

Frontline workers make the improvements to their own jobs, and their supervisors provide direction and assistance as teachers.

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“Secret” of Toyota’s Success

To understand Toyota’s success, you have to unravel the paradox – you have to see that the rigid specification is the very thing that makes the flexibility and creativity possible.

The unspoken knowledge that underlies the Toyota Production System can be captured in four basic rules

These rules guide the design, operation, and improvement of every activity, connection, and pathway for every product and service

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TPS System Rules

Rule 2:

Every customer-supplier

connection must be direct, and there must be a unmistakable yes-or-no way to send requests and receive responses

Rule 1:

All work shall be highly specified (standardized) as to content,

sequence, timing and outcome

Rule 3:

The pathway for every product and service must be simple and direct –

flow

Rule 4:

Any improvement must be made in accordance with the scientific method, under the guidance of a teacher, at the lowest possible level in the organization

1999

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Using scientific methods to

Solve Problems

Use Scientific Problem Solving to dig beyond symptoms of

common causes

Does your company use Lean Tools and Methodologies to Solve Problems?

Addressing this is more effective than jumping to solutions and launching hundreds of project

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Knowledge and Skills

To know, to understand the meaning correctly and to be able to teach

Lean Knowledge

Kanban, Pull system, Jidoka, Supermarket, 5S, TPM, SMED, JIT, Kaizen, STW, SOS, WCT, FTQ, PPM, Takt Time, etc …

I know this!

Lean Skills

Be able to solve problems and advance the organization by using Lean Knowledge properly

Use Lean knowledge to motivate people, achieve results, reduce costs, improve the operation and address business needs

Can you Play a Violin?

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Solving Problems

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Implementation of Lean – The Six Steps Approach

Step 1 – Sort out as many quality problems as you can, as well as downtime or other instability problems. Make sure that you ship 100% on time to your Customers. Get Engineers to worry seriously about internal scrap.

Step 2 – Make sure the flow of parts through the system is as continuous as possible, which involves setting up the U-calls and making market locations, avoiding variations in the operator’s work cycle.

Step 3 – Introduce Standardized Work and make sure the pace of work stabilizes through the various processes

Step 4 – Start pulling, so that no parts or material move forward until they are called for. Start looking at production schedule and eventually replace production weekly or daily orders with some type of frequent signal, like Kanban card.

Step 5 – Even out the production flow by reducing batch sizes, increasing the rhythm of internal deliveries, and leveling your internal demand.

Step 6 – And when you accomplish all that and everything works perfectly you pull resources out and start again.

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Changing the World. One Transformation at a time

This presentation is an intellectual property of W3 Group Canada Inc.No parts of this document can be copied or reproduced

without written permission from:

Marek PiatkowskiW3 Group Canada Inc.iPhone: 416-235-2631

Cell: 248-207-0416

[email protected]://twi-network.com


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How to implement lean - Executive overview

Leadership & Management

Transcript of How to implement lean - Executive overview