Kaizen Revised 19-01-2009

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John DeereSupplier Development

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Kaizen TrainingCompeting in the Marketplace

What factors are important to the customer?

John Deere - Supplier Development

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2Kaizen TrainingSome examples NVA Activities:

Walking Waiting onmachine cycle

Transporting

parts

Generatinguseless reports

THE GOAL IS TO ELIMINATE THENON-VALUE ADDED ACTIVITIES.

Unnecessarymotion

Unnecessarystock on hand

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3Kaizen Training

TIME: The single best indicatorof competitiveness

Customer Lead Time / Delivery Time

Working to reduce or minimize each of these times canmake your company more valuable to both its internaland external customers.

Set-up or Change-over Time

Product Development TimeManufacturing Cycle Time

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5Kaizen TrainingWheres the Time in Lead Time

This timeline represents an overall lead-time, with very littletime spent on adding value to the product.

Non-Value Added Time (NVA)99% of Total Lead time

Value Added Time (VA)1%

Improvement EffortsConcentrated on reducing VA time,with no attention given to NVA.


VA1/2 %

Results of Common Improvement efforts, did not improveresponse time. VA time is reduced, but, the costs for those

improvements in lead time was substantial.

Common

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6Kaizen TrainingWheres the Time in Lead Time

NVA Time95% of Total Lead time

VA5%

When we look at attacking the NVA Activities in the Timelineand compare that to the original timeline:


Value Added Time (VA)1%

This shows a 5X improvement in lead timeGreat Job!!

Greatest Opportunities are actually here!

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7Kaizen TrainingDifferent Types of Activities

Being able to tell the difference between NVA and VAactivities is an important step in the Improvement Process.

Value AddedActivity (VA)

An activity that ch anges rawmaterial to meet customerexpectations.

Non Value AddedActivity (NVA)

Those activities that take

time, or occupy space but donot add to the value of theproduct.

You must ask yourselves Would you as a customer bewilling to pay for any NVA activity being performed to that

NEW 4x4 Pickup you just ordered?

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A definition:

Destroy, in our minds, theconcepts and techniques ofmanufacturing that wepractice today.

Create a vision of what ourproduction system andmanufacturing techniquesshould be.

Carry out that Vision bybreaking through the statusquo.

We must avoid the urge to discover more sophisticated and technological solutions to tasks we shouldnt be doing at all.

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9Kaizen TrainingBasic Rules for Change

Keep an open mind to change

No such thing as a dumb question or idea

Avoid spending money (Capital expense shouldbe a last resort)

Think about how to do it, NOT why it cant be done

Maintain a positive attitude

Dont make excuses & question current practices

Just do it!!

Have Fun!!!

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10Kaizen TrainingSteps on Team Development

Forming This is the development of a multi-functionalteam with a variation of backgrounds andknowledge

Norming Stage where the group agrees how tooperate as a team

Storming Open & honest discussion, also brainstorming

Performing Agreement on solutions & taking action

Adjourning Closing on the continuos improvement processafter 30 days

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11Kaizen TrainingWhat is TAKT Time?

TAKT time is how many minutes or seconds are neededto make one part when considering the daily volumes, tobe produced in that workcell and the total time available toperform the job.

TAKT time is NOT the time it takes to manufacture theproduct. It is based on customer demand.

Who is the customer?

The next operationCustomer orders

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12Kaizen TrainingTAKT Time Calculation

Production Time Available / PeriodNumber of Required Units / Period

TAKT

Production Time Available / Period (one shift):

Breaks - 2 @ 10 minutesShift Time ( 8 hrs. )

Clean-up at end of shiftProduction Time Available:

- 20 mins.480 mins.

- 5 mins.455 mins.

Units Required / Period (one shift):10,500 Units Sold Monthly21 Working shifts / month

27,300 secs.or

500 Required units / shift

TAKT Time: 27,300 secs / shift500 units / shift

54.6 secs.

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13Kaizen TrainingThe 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 Japaneseprogram derived from these words, seiri, seiton, seiso, seiketsu and shitsuke . The 5Ss are a conventional approach towardsmaintaining and improving the work place. The following wordshave been chosen for the 5S acronyms.

Sort

Sustain

Sanitize (Safety)

Straighten

Sweep

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14Kaizen TrainingMeaning of the 5Ss

Sort

Straighten

Sweep(Scrubbing clean)

Examine everything at the workplace & identifywhat is needed and what can be discarded

Organizing the way things are put away withefficiency, quality, and safety in mind. Need todecide where and how things should be put awayand what rules should be obeyed to insure that it ismaintained.

Sweeping, scrubbing and cleaning of the building,machines, fixtures & tools so that all areas of theworkplace are neat & tidy. This leads to earlydetection of mechanical problems before theybecome major breakdowns. Machines cry!

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15Kaizen Training

Sanitize(Safety)

Sustain(Standardize)

Meaning of the 5Ss

Insuring that each workplace is properlydesigned for safety. This is to protect everymember from the dangers during the

performance of their assigned tasks.

Developing the practice necessary to continuallyparticipate in the 5S process. This requires thateach of the Ss become a personal habit. This

is the most difficult of the 5Ss, but it is the mostimportant factor in achieving long term success.Establishing routines and procedures formaintaining and improving on the first four (Ss),incorporating visual management tools.

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17Kaizen Training

Do MORE with LESS

Waste Productivity

Staffing Productivity

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1. Transportation - Transporting 1. Transportation - Carryingfarther than necessary or Tools to Point of Use

temporarily locating, filing,stacking and moving parts(people, paper, information) iswaste.

2. Correction - Doing something 2. Correction - Redo an Activityover is waste. Because of Error

3. Overproduction - Generating 3. Overproduction - Number ofexcess paper or information, or Copiesgenerating information or papertoo soon in a process is waste.

Definition Example

ELEMENTS OF WASTE

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4. Motion - Unnecessary work 4. Motion - Tools in drawers

movements are a form of waste.

5. Waiting - Waiting for people, 5. Waiting - Meetings to startpaper and information is waste -it stops work.

6. Inventory - Too much of 6. Inventory - Suppliesanything is waste.

7. Processing - this is waste in 7. Processing - Typed whenthe process itself. Redundant handwritten would beactivities sufficient

Definition Example

ELEMENTS OF WASTE

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John Deere

21Kaizen Training

Standards

Enforce Inspect

.

Stabilize

IdentifyWaste

Problem Solve

Standardize

Process requires ongoing inspection and enforcement to

ensure Standardized Work is being followed

Process does not improve automatically

- Following standards will only maintain, not improve, the process.- Improvement focuses on the entire process.

Kaizen Revised 19-01-2009

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