1. Improving OEE using THE Honky-Tonk Conceptto reduce costs and increase throughputOEE- a key metric in TPM/LeanOEE= Availability x Performance x Yield Reliable Plant 2012; May 1-3 Slide 1 of 50 copyright

2. 2Overview My Company: Toyota Boshoku Are you effectively using yourresources today? 4-11Stand alone unit A small Change, Dramatic Results Story of a sign Lean 13-18, TPS 19-21 & Jidoka 22-29 Visual Controls 30- 41 and Honky-Tonk 42-53 Wrap-Up and Q&As 3. TOYOTA BOSHOKU TOYOTA BOSHOKU AMERICA is a leading manufacturer of seats,door trim, headliners, filtration systems and other interiorcomponents. Founded in 1918 as the first Toyota Group Company,TBA is committed to the innovative design of products. Toyota Boshoku aims to continue developing as a company thatcontributes to society and grows in harmony with our localcommunities as a good corporate citizen. We have instituted theToyota Boshoku Fundamental Principles so that we may continueto enjoy the trust of our shareholders, investors, and all otherstakeholders. We shall fulfill our corporate responsibilitiesthrough company activities based upon these principles. As a Tier 1 supplier for Toyota, Toyota Boshoku has several plantsacross the US, Central/South America and Canada. 4. MAIN PRODUCTS 5. OUR PRODUCTS Air Cabin Filtration 6. TB Americas 7. 7 Presentation 8. Why Visual Management?Eyes 83%Nose 3,5%Mouth 1%Ears 11%Combined94% Hands 1, 5%8Humans are mainly visually oriented 9. 9 Are you effectively usingyour resources?Machines Materials Manpower2 10. Can you tell the difference between anormal and an abnormal situation or10 process????Visual management = management of difficulties 11. 11Lean Tools Visual Management Would you stay for the end of this game?Click to hear what happens after next pitch INNING1 2 3 4 5 6 7 8 9 R H E VISITOR0 0 1 0 1 0 2 04 7 0 HOME 1 0 0 0 0 3 0 04 6 1 BALL: 3 STRIKE: 2OUT: 2ON BASEAT BAT:#37 PITCHER:#42POSITION:RFERA:3.59 AVG:.279W-L:11-7HR:12 Ks: 5RBI: 43BBs: 1 12. 12 Lean Tools Visual ManagementThe team you were cheering for scored a2 home runs! Did you stay to see it? Visual Management allows us to know what is happening when walking into a situation. 13. 13 A Workplace without Honky-Tonk Many companies use alarms with negative reinforcements (wheel of fortune buzzer) No signal for broken tools like i.e. drill bits One audio signal/ alarm sound for everything Using either audio or visual rarely combined Limited use of Andons or tower lights Some machine signals are reactive after a problem occurs or machine times out Lack of Standardization of colors (red, amber, green, etc.) 14. 14 A Workplace without Jidoka Operators are somewhat tied to o n e machine Maintenance & Materials driven signals are not common Machines are very complex. Some machines are error-proofed. Most signals come by messages on the touch screen 4- 8 size screen; Small message & cant read message from a distance Mastering the machine on a daily basis is not required for validation of process Machine keeps running even when condition is abnormal and requires immediate attention 15. A Quick Survey15 1. When you are on the production floor,can you visually and/or audiblyunderstand the current situation in 5seconds? 2. Can you identify the type of theabnormal condition (maintenance,quality, materials, etc.)? 16. 16 Machine Failure is an expensive option! Equipment failure can be expensive, and potentially catastrophic. Unplanned production downtime, missed contract deadlines, costly machinery replacements, as well as safety problems, environmental concerns, and regulatory violations are all potential consequences of a maintenance program that fails to predict and monitor equipment problems. Mosher, Phillip, Flowserve Corp. (2006, October). Enhancing Your Predictive Maintenance Program with ConditionMonitoring, Manufacturing.Net 17. STORY OF A SIGN17 A Small Change, Dramatic Results http://www.youtube.com/watch?v=zyGEEamz7ZM 18. 18 Lean and Machine Availability By design, flow systems have an everything works or nothing works quality. This meansthat the machinery must be made 100 percent available. -Womack and Jones, Lean Thinking Operational stability is influenced directly by the condition and availability of the production equipment. Machine downtime can never be eliminated completely, but unexpected downtime should be reduced to zero.-Standard and Davis, Running Todays Factory 19. What major changes do you envision in Reliability &19Maintainability in the next 10 years? 1.People &Culture 26% 2.More Design-inReliability & NA=75%Maintainability 20% 3.More data drivenprocesses & Tools 19% 4.Maint. ProcessImprovements 16% 5.Specific Maint.Improvements 13% 6.More sensors & Timelyfeedback 6%Klaus M. Blache, PhD,Benchmarking a BetterUnderstanding, Uptime 20. Best Quality- Lowest Cost- Shortest Leadtime, Best safety, High moraleLean Mfg.JidokaRightPeople & TeamworkQuality built-inproduct, right Auto stopvolume, RightAndontimePerson-MachineTakt timeseparation Continuous flowVisual Controls Pull system Error-ProofingQuick Change Waste Reduction Leveled Production (Heijunka)Stable & Standardized Process (TPM)Visual Management Toyota Way Philosophy20 21. 21 What is Lean Manufacturing? "A systematic approach to identifying and eliminating waste (non-value-added activities) through continuous improvement by flowing the product at the pull of the customer in pursuit of perfection.Waste Lean Manufacturing is a strategy for achieving significant, continuous improvement in performance through the elimination of ALL waste of time and resources in the total supply chain. 22. Continuously Attacking WasteWaste is everything that exceeds the required minimum in22 equipment, material, area and time ! ContinuousError Proofing Quality Control Improvement Total Productive Business Process MaintenanceRe-EngineeringContinuous Flow 5S Waste (Muda) Visual Mgmt.EliminationHonky-Tonk Quick Setup Variation ReductionStandard Work/ISO, TS16949, 9000Jidoka 23. 23 Lean Expectations Source: The lean supply chain report Aberdeen Group, 2006 Laggards (30%) below industry avg. and performance Average (50%) represents the norm and avg. industry performance Best in class (20%) superior results and top performance 24. The two pillars of TPS24 Jidoka is one of the two main pillars of TPS (the other is Just-In-Time production). The process of stopping a production line in order to fixproblems as they occur is referred to as Jidoka. Jidoka is a fundamental component of the Toyota ProductionSystem. The goal of Jidoka is to minimize defects by correctingproblems at their source and thereby continually buildingquality and reliability into the production process. Andons such as Honky-Tonk are a must for Jidoka, as theyprovide operators with quick audio-visual signals for instantlycalling their attention to problems. 25. 25Jidoka Jidoka - autonomation (automation with a human touch) Autonomation implies autonomous operation, a machines capability to operate without human intervention Autonomation English translation of Jidoka. Imparting human intelligence to a machine so that it automatically stops or provides audio- visual signal when a problem arises Jidoka means building into a production process the capability to: Immediately respond to production abnormalities Prevent the recurrence of production abnormalities Separate machine work from human work Andons are an essential element of Jidoka, as they provide operators with a practical and effective mechanism for instantly calling attention to problems. 26. 26 The Mystery Pillar of TPS Jidoka is a mysterious Japanese word that has a couple of meanings, says Art Smalley, President Art of Lean, Inc. (former Toyota Engineer) one is the notion of building in quality at the process. This is the least well understood part of TPS and the hardest to see This part of TPS is, frankly, just not understood by anyone writing about Toyota today. I call it the mystery pillar of TPS.Weber, A. (2008, April). Little Lessons from the Big Boys. Assembly Magazine 24-33 27. Autonomation- A Key Element In SuccessfulLean Manufacturing Implementations27 Taiichi Ohno and Sakichi Toyoda, originators of the TPS and practices in the manufacturing of textiles, machinery and automobiles considered Lean, JIT & Autonomation the pillars upon which TPS is built upon. Jeffrey Liker and David Meier indicate that Jidoka or "the decision to stop and fix problems as they occur rather than pushing them down the line to be resolved later" is a large part of the difference between the effectiveness of Toyota and other companies who have tried to adopt Lean Manufacturing. 28. 28There is a huge Gap between Toyota and US/European, but Why? In a survey report released in 2003, the number of defects in a Toyota vehicle per 100 vehicle was 25. but the vehicles of US and European make, it ranged between 50-70 in spite of the fact that they use tools like Six Sigma methodology & ISO-9000. The answer is Jidoka, of course! 29. 29 of 115Built Into the Process/ Machine Traditional MethodReworkInspectionA BCA B CShip ScrapJidoka Method A B C D Ship FinalBuild in Reliability Inspectionat Each Process 30. 30 Quality Loops/ QA Network Assembly, April 2008; Page 26 31. 31Jidoka The seven levels of Jidoka: Jidoka 7Quality Check (Poka-Yoke) 6 Part Removal (Hanedashi) 5 Autonomation of Returns 4 Automation of Stops 3Autonomation of Feed 2Automation of Holding 1 Autonomation of Processing 32. Jidoka- The Toyota Way32 In case of machines, we build devices into them, which detect abnormalities and stop the machine. In case of humans, we give them power to push button- called andon which bring our entire assembly line to halt.Alex Warren, Vice President, Toyota Corporation 33. 33Jidoka Principles Stop the line authority to everyonePrevents defects from being passed onAvoids extensive rework, scrap, or customer return of productSeparate machine work from human work Give machines the capability to independently perform simple, repetitive functions, instead of having people do them When abnormalities are detected, respond immediately, in order to find the root causesAllow only one defect to occurKeep asking Why?Solve the problem to prevent recurrence Give machines the capability of detecting, shutting down, and signaling when abnormalities occur Approach jidoka as a continuous improvement process 34. 34AUDIO-VISUAL CONTROLS Simple Visual and Audio Signals That Provide an Immediate Understanding of a Situation or Condition. They are Efficient, Self Regulating, and Employee Managed. 35. Visual Management (supports all tools)35 NORMAL APPLY VISUAL TOOLSVISUAL WIPSEEINDICATORSSTATUSAT-A-GLANCEABNORMALCORRECTIVE ACTION / UNITS VS PLAN (5 seconds) 6-SIGMA LOCATIONSOWNED BY THE PEOPLE WHO WORK IN THE AREA 36. Whats an Andon ?36 Its origin is in the Japanese word for paper lantern. In lean manufacturing, Andon refers to any visual display that shows status information on the plant floor. The first Andons in manufacturing were simple lights that enabled operators to signal line status based on color: green for normal operation; yellow when assistance was needed; and red when the line was down. 37. Tools: Andon & PokayokeStop and notify abnormalitiesApproach:1. Preventive2. If trouble, STOP!3. If defect, DONT PASS!ASLTE 2ORPTDefectTROUBLE Machine BreakdownHuman 37Machine 38. 38 Visual Factory Visual Elements on the Enables everyone to production flow allowsee how we are everyone to know the score and they make out of performing standard situations Helps highlight immediately obvious. problems, or variances from standard Encourages employee involvement and open discussions Special tone for goalcompletion 39. Look at the COLORS not the words Left Right Conflict Your right brain tries to say the color but Your left brain insists on reading the word.YELLOWBLUE ORANGEBLACK RED GREEN YELLOW RED PURPLE ORANGE GREEN BLACK BLUE RED PURPLE39 GREENBLUE ORANGE 40. 40Visual Control system: Improves Safety 40 300000 500 456 0 78E F 30 00 9Gasoli Reduces Quality Issues200 0600 201 ne0 Tachometer 701000 01 MPH 100 Oi Brigh Batter 0 0Odometer 11l Trip-O-Meter y0 0 80 00 ts0 00236 Lights 00 2 00 Improves CostAir Conditioning Heat 0 CDTAPE 90.55FMDefroster Improves Morale Improves Responsiveness/Delivery 41. Honky-Tonk: A-I-R41 Andon is an information tool A tool of visual which provides management, originating instant, visible and audible from the Japanese for signals to the productionlantern. Lights placed on team that there is anmachines or on production abnormality within that area.lines to indicate operationstatus combined with anaudible tone for eachcondition. 1 2 3 4 Abnormality IndicationResponse 42. 42 Every single Visual cue is reinforced with adifferent musical (TUNE) cueCommonly coded colors are:Green= OK, Auto Run, Normal operationsRed= machine down, abnormal conditionBlue= Group leader callAmber= Changeover or Planned Maintenance (TPM)Solid White= out of Materials 43. 43 Dont let the situation confuse you... 44. Honky Tonk System44 An Honky-Tonk system is a key aspect of the lean visual control strategy in a factory and a great tool in implementing a successful lean manufacturing program. It will reduce response time (over 50%) by support resources to plant operations. Honky-Tonk can be used for multiple purposes - signaling machine related issues, product condition, resources, abnormal conditions, and much more. Facilitating the transition from reactive maintenance to proactive maintenance Visual Control Tower light System with Flashing Capability Message Player 8+ Channel Speaker amp for extended range 45. 45 Go to the Source: Eyes, Ears and Nose? Do not, however, underestimate the value of other high-tech instruments your own senses. Thats right, your eyes, ears and nose can be valuable condition monitoring tools and unlike other instruments, require little training to be utilized effectively. Jarrod Potteiger, "Utilizing Your Senses As Condition Monitoring Tools". Machinery Lubrication Magazine. March 2007 46. Honky-Tonk: An efficient communication system46 A key principle underlying Honky-Tonk system is efficient communication. Honky-Tonk system is a simple, consistent, and instantaneous method of conveying information. Simplicity comes from focusing on a few key pieces of information.Consistency comes from applying variable Audio-visual cues in astandardized way (e.g. green is normal, amber is slightly deviating,and red requires immediate attention). Instantaneous comes fromusing lights and audio tunes on the plant floor that can be seenand heard over long distances. At their core, Honky-Tonk systems both empower and inform theplant floor. They enable operators to add more value to theproduction process, and to be an integral part of processimprovements. 47. 47 Honky-Tonk Business Benefits Increase Capacity (OEE) Uptime Yield Output Reduce maintenance costs Reduce supervisory costs Provide supervisors immediate signals to resolve production issues quickly such as quality, downtime and materials supply Provide empowerment to operators by taking immediate actions to rectify problems Provide consistent communications to personnel to make corrections when needed. 48. 48 Honky-Tonk Benefits & Costs OEEBeforeAfter Type I Machinery72% 81%+9% Type II Machinery 74% 86%+12% Type III Machinery69% 79%+10%A Standard Honky-Tonk system costs about $500-$1000 permachine depending on the machine and specs. Results may vary by company, products, and machinery 49. Toyotas 4 Key Tools49 At Toyota, they keep things very simple and use 4 key tools: 1. Go and See (Go to the source) 2. Analyze the situation 3. Ask why? five times 4. Use Honky-Tonk system to surface problems 50. 50Keeping it Visual Through Technology and Human systems The best visual indicators are right at the work site, where they can jump out at you and clearly indicate by sound, sight, and feel the standard and any deviation from standard. A well developed visual control system increases productivity, reduces defects and mistakes, helps meet deadlines, facilitates communication, improves safety, lower costs, and generally gives the workers more control over their environment. 51. 51Honky-Tonk ApplicationsHonky-Tonk connects into your existing machines or processes.Connect one or more sensors and Honky-Tonk will instantaneouslystart delivering audio-visual signals at your Gemba site. YOU PROVIDE Honky- Tonk PROVIDES One Sensor for MachineUnique audio visual signal for down condition 2nd Sensor (Quality reject) 3rd Sensor (manual push Button) 4th Sensor (material low inventory level) 5th Sensor (Open) 52. Machine status in 5 seconds52 53. Lessons Learned53 Develop in-house capability to redesign equipment, fixtures and tools Consider Honky-Tonk concept to improve OEE Eliminate human error in operation and maintenance Mistake proofing (lights, sounds, automatic machine stop, etc). Must do it all over, but have a pilot area and grow the lessons learned. 54. Q & As54 Thank you for coming. It is notwhat you know that counts somuch as what you do with whatyou know.