1 John Deere Supplier Development Kaizen Training Kaizen Training Competing in the Marketplace Competing in the Marketplace “What factors are important to the customer?” John Deere - Supplier Development John Deere - Supplier Development 2 John Deere Supplier Development Kaizen Training Kaizen Training TIME: TIME: The single best indicator of competitiveness Customer Lead Time / Delivery Time Working to reduce or minimize each of these times can make your company more valuable to both its internal and external customers. Set-up or Change-over Time Product Development Time Manufacturing Cycle Time 3 John Deere Supplier Development Kaizen Training Kaizen Training Shrinking Lead Times Order Lead Times Manufacturing Lead Times Delivery Lead Times Manufacturing Lead TimesOrder Lead Times Delivery Lead Times Reducing the overall time from receiving the order to delivering the product makes your company more responsive to the customer. This can become the deciding factor when the customer makes their selection. As can be seen, manufacturing is only one part of the entire process. Inputting, processing, and issuing orders is an area for improvement, as well as, assembly, loading and delivery to the customer` 4 John Deere Supplier Development Kaizen Training Kaizen Training Where’s the Time in Lead Time This timeline represents an overall lead-time, with very little time spent on adding value to the product. Non-Value Added Time (NVA) 99% of Total Lead time Value Added Time (VA) 1% Improvement Efforts Concentrated on reducing VA time, with no attention given to NVA. Non-Value Added Time (NVA) 99% of Total Lead time VA 1/2 % Results of Common Improvement efforts, did not improve response time. VA time is reduced, but, the costs for those improvements in lead time was substantial. Common 5 John Deere Supplier Development Kaizen Training Kaizen Training Where’s the Time in Lead Time NVA Time 95% of Total Lead time VA 5% When we look at attacking the NVA Activities in the Timeline and compare that to the original timeline: Non-Value Added Time (NVA) 99% of Total Lead time Value Added Time (VA) 1% This shows a 5X improvement in lead time Great Job!! Greatest Opportunities are actually here! 6 John Deere Supplier Development Kaizen Training Kaizen Training Different Types of Activities Being able to tell the difference between NVA and VA activities is an important step in the Improvement Process. Value Added Activity (VA) An activity that changes raw material to meet customer expectations. Non Value Added Activity (NVA) Those activities that take time, or occupy space but do not add to the value of the product. You must ask yourselves “Would you as a customer be willing to pay for any NVA activity being performed to that NEW 4x4 Pickup you just ordered?” 7 John Deere Supplier Development Kaizen Training Kaizen Training Some examples NVA Activities: Walking Waiting on machine cycle Transporting parts Generating useless reports THE GOAL IS TO ELIMINATE THE THE GOAL IS TO ELIMINATE THE NON-VALUE ADDED ACTIVITIES. NON-VALUE ADDED ACTIVITIES. Unnecessary motion Unnecessary stock on hand 8 John Deere Supplier Development A definition: Destroy, in our minds, the concepts and techniques of manufacturing that we practice today. Create a vision of what our production system and manufacturing techniques should be. Carry out that Vision by breaking through the status quo. We must avoid the urge to discover more sophisticated and technological solutions to tasks we shouldn’t be doing at all. 9 John Deere Supplier Development Kaizen Training Kaizen Training Basic Rules for Change Keep an open mind to change No such thing as a dumb question or idea Avoid spending money (Capital expense should be a last resort) Think about how to do it, NOT why it can’t be done Maintain a positive attitude Don’t’ make excuses & question current practices Just do it!! Have Fun!!! 10 John Deere Supplier Development Kaizen Training Kaizen Training Steps on Team Development Forming Forming This is the development of a multi-functional team with a variation of backgrounds and knowledge Norming Norming Stage where the group agrees how to operate as a team Storming Storming Open & honest discussion, also brainstorming Performing Performing Agreement on solutions & taking action Adjourning Adjourning Closing on the continuos improvement process after 30 days [...]... Establishing routines and procedures for maintaining and improving on the first four (S’s), incorporating visual management tools John Deere Supplier Development Kaizen Training 16 WASTE John Deere Supplier Development Kaizen Training 17 Do MORE with LESS Staffing Productivity Waste Productivity John Deere Supplier Development 18 SHIFT MINDSET CURRENT THINKING REQUIRED THINKING Transportation Processing... Sustain (Standardize) Insuring that each workplace is properly designed for safety This is to protect every member from the dangers during the performance of their assigned tasks Developing the practice necessary to continually participate in the 5S process This requires that each of the S’s become a personal habit This is the most difficult of the 5S’s, but it is the most important factor in achieving... the work place The following words have been chosen for the 5S acronym’s Sort Straighten Sanitize (Safety) Sweep Sustain John Deere Supplier Development Kaizen Training 14 Meaning of the 5S’s Sort Straighten Sweep (Scrubbing clean) Examine everything at the workplace & identify what is needed and what can be discarded Organizing the way things are put away with efficiency, quality, and safety in mind... and how things should be put away and what rules should be obeyed to insure that it is maintained Sweeping, scrubbing and cleaning of the building, machines, fixtures & tools so that all areas of the workplace are neat & tidy This leads to early detection of mechanical problems before they become major breakdowns Machines cry! John Deere Supplier Development Kaizen Training 15 Meaning of the 5S’s Sanitize... Training 13 The 5S Housekeeping Standards First Step towards Continuos Improvement The aim of 5S is to create an atmosphere to keep a clean, organized, safe and efficient workplace for everyone The foundation for the practice of 5S, comes from a Japanese program derived from these words, seiri, seiton, seiso, seiketsu and shitsuke The 5S’s are a conventional approach towards maintaining and improving... 20 ELEMENTS OF WASTE Definition 4 Motion - Unnecessary work movements are a form of waste Example 4 Motion - Tools in drawers 5 Waiting - Waiting for people, 5 Waiting - Meetings to start paper and information is waste it stops work 6 Inventory - Too much of anything is waste 7 Processing - this is waste in the process itself Redundant activities 6 Inventory - Supplies 7 Processing - Typed when handwritten...Kaizen Training 11 What is TAKT Time? TAKT time is how many minutes or seconds are needed to make one part when considering the daily volumes, to be produced in that workcell and the total time available to perform the job TAKT time is NOT the time it takes to manufacture the product It is based on customer demand Who is the customer? The next operation Customer orders John... or temporarily locating, filing, stacking and moving parts (people, paper, information) is waste Example 1 Transportation - Carrying Tools to Point of Use 2 Correction - Doing something over is waste 2 Correction - Redo an Activity Because of Error 3 Overproduction - Generating excess paper or information, or generating information or paper too soon in a process is waste 3 Overproduction - Number of... Deere Supplier Development Kaizen Training 21 • Process requires ongoing inspection and enforcement to ensure “Standardized Work” is being followed Standards Inspect Enforce • Process does not improve automatically Standardize Im o pr Problem Solve Stabilize ve Identify Waste - Following standards will only maintain, not improve, the process - Improvement focuses on the entire process John Deere Supplier... WASTE Inventory Waiting TYPES Correction OF WASTE OverProduction Motion WASTE NOT DEFINED REACT TO LARGE EXAMPLES REACTIVE IMPROVEMENT WASTE IS "TANGIBLE” IDENTIFY MANY SMALL OPPORTUNITIES -LEADS TO LARGE OVERALL CHAGE CONTINUOUS IMPROVEMENT John Deere Supplier Development 19 ELEMENTS OF WASTE Definition 1 Transportation - Transporting farther than necessary or temporarily locating, filing, stacking . 1 John Deere Supplier Development Kaizen Training Kaizen Training Competing in the Marketplace Competing in the Marketplace “What factors are important to the customer?” John Deere - Supplier Development John. Training Kaizen Training Some examples NVA Activities: Walking Waiting on machine cycle Transporting parts Generating useless reports THE GOAL IS TO ELIMINATE THE THE GOAL IS TO ELIMINATE THE. This is the most difficult of the 5S’s, but it is the most important factor in achieving long term success. Establishing routines and procedures for maintaining and improving on the first