Toyota key questions and OSKKK par René Aernoudts, Lean Global Network - Lean Summit France 2014

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LEAN GLOBAL

NETWORK

The 8 key questions & OSKKK 4ème Lean Summit France

Lyon, April 1, 2014 Drs. René Aernoudts ([email protected])

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René Aernoudts

• Active in Lean Management since 1996

• Founder and President of the Lean Management Instituut Netherlands (since 2004)

• Executive board member Lean Global Network

• Visiting professor Virginia Tech

• 18 years experience in 120+ worldwide Lean transformations (publishing, marketing, construction, FMCG, professional services, food & process industry, retail, logistics)

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The Lean Global Network

• LGN is a network of non-profit, mission-driven institutes taking responsibility for bringing Lean Thinking & Practice to their countries and the world

• Our definition of Lean Thinking & Practice: Systematically develop people and continuously improve processes to provide value and prosperity while consuming the fewest possible resources

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John Shook José Ferro

René Aernoudts

Executive Committee of LGN

Yalçın İpbüken


The Lean Global Network Australia – Lean Enterprise Australia Brasil – Lean Institute Brasil China – Lean Enterprise China Denmark – Confederation Danish Industries France – Project Lean Enterprise Hungary – Lean Enterprise Institute India – Lean Management Institute Israel – Israel Lean Enterprise Italy – Istituto Lean Management México – Lean Enterprise Mexico Netherlands – Lean Management Instituut Poland – Lean Enterprise Institute South Africa – Lean Institute Africa Spain – Instituto Lean Management Turkey – Lean Institute Turkey U.K. – Lean Enterprise Academy U.S.A. - Lean Enterprise Institute

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What are the biggest challenges in Lean Transformations?


What are the biggest challenges in Lean Transformations?

• Understanding real customer value

• Understanding the real ‘problems’

• Engaging people

• Pace of transforming: ‘haste slowly’

• PDCA on the process

• … and so on…


What are pitfalls in Lean Transformations?


Guidelines that can help…

• The tasks of Lean Managers

• Toyota’s 8 key questions

• OSKKK


The Tasks of Lean Managers

• To determine what is important

– How to focus everyone on the vital few?

• To deploy the right improvements

– How to close the performance gaps?

• To create stability, flow and synchronisation

– How to unblock obstacles to flow?

• To develop capabilities and future managers

– How to solve problems and collaborate?

• To prepare to meet future challenges

– How to think back from the customer?

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Source: Dan Jones


Toyota’s 8 key questions

1. How will you satisfy the customer and obtain a profit?

2. What are your main problems in operations?

3. How will you achieve 100% JIT?

4. How will you build in 100% quality?

5. How will you stabilise the availability to 100%?

6. How will you standardize work 100%?

7. How will you develop natural work team leaders?

8. How will you sustain and improve?

Source: Art Smalley


The 8 key questions









Purpose

Process

People

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1. How will you satisfy the customer and obtain a profit? • The goal of lean is to deliver the highest possible quality, at

the lowest possible cost, with the shortest lead-time possible. The end result of this should be:

– enhanced customer satisfaction

– improved profitability

• Properly focusing on the aims of the system and not just the means is of critical importance if you wish to achieve maximum benefit and not just reduction of inventory

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2. What are your main problems in operations? • Rather than starting with a prescriptive approach in Lean (e.g.

establish takt time, implement kanban, standardise work, improve flow), it is important to establish what exactly is the problem

• The proper step is to first practice sound problem solving and frame your exact situation with the relevant facts and details.

– Is the problem delivery? Is it quality? Is it productivity? How much?

• Many organizations tend to jump to the solutions or tools rather than frame and solve their own unique problems. Always remember the correct step in Lean is to:

– first define what exactly is the real problem

– and then move on from there with good problem solving technique

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• JIT and its associated elements such as flow, takt time, pull, and level production are what most people often mistake for the entire system.

• Focusing on this pillar will of course help shorten lead-times, reduce inventory, improve on-time delivery, and highlight many other problems.

• We have more than enough information in this area but suffer from a lack of tools and knowledge in the other areas.

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• One of the most important yet least understood elements of TPS is the concept of Jidoka.

– Jidoka relates to the notion of building in quality rather than inspecting it in at a later stage of the production process.

– it implies that the machine should automatically stop at the sign of any abnormality. This is important for establishing separation of man and machine and enabling multi process handling.

• Each of the equipment intensive production shops in Toyota (casting, forging, machining, stamping, body weld, paint, plastics, etc.) have their own different techniques for accomplishing some form of Jidoka.

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5. How will you stabilise the availability to 100%? • Few things would work in Lean unless the process is fairly

stable and predictable. Without a reliable process it is extremely difficult to achieve either JIT or pure standardized work. Many companies would be better served by spending some time on the unstable processes and fixing basic problems in operations.

• Often the basic sources of equipment instability are in the four areas of man, machine, material, and methods.

• Many companies attempt to skip this step or fail to execute it in conjunction with JIT style improvements. The result is a pull system with many quality and downtime problems.

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• The Standardized Work Chart is among the most misunderstood Lean tools. Many people mistakenly assume it is the only document Toyota uses on production to document jobs, train people, reduce variation, and drive productivity improvements.

• The Standardized Work Chart outlines vital tasks such as how to

– change tools

– gauge parts

– conduct quality checks

– troubleshoot

– clean equipment … and many others

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• For pure standardized work to function,

1. The work must be human centric, not machine centric.

2. It must be repetitive in nature and consist of similar work content.

3. The process has to be relatively free of quality or downtime problems.

• Once in place, the three primary elements composing standardized work can be established and implemented, i.e.

1. Takt time

2. Work sequence

3. Standard work in process 18


7. How will you develop natural work team leaders? • The key ingredients behind the Lean system are the people and

the work team leaders. Much of Lean boils down to daily execution, and the ability to conduct small daily improvements over time.

• The essence of Lean lies in the fundamentals of employee and leadership development. Toyota: “making things is about making people”.

• Once capable of operating a process, the employee is challenged to analyze the process in an eternal search for improvement.

• Each section of the company has its own set of analytical tools to help drive performance improvement.

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• Most Toyota managers, if asked to describe their management culture, would emphasize the rigor of basic Plan-Do-Check-Act (PDCA) management.

• Much of Lean itself arose from simple application of constantly repeating the PDCA cycle time and time again. QC circles, problem-solving, A3 thinking, and kaizen are all linked to this simple method of PDCA.

• The discipline and rigor of executing this cycle is what makes Toyota unique, not just the popular tools.

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What do you observe?


2. What are your main problems in production?




6. How will you standardise work 100%?



•On-time delivery •Inventory •Lead-time

•Customer defects •Scrap •Rework

•Capacity losses •Downtime •Scrap & Rework

•Labor productivity •Scrap & rework •Safety

•Team morale •Skills development •Small improvements

•Recurring problems •Firefighting •Poor problem solving

Typical Problems Key TPS Questions

Symptoms of problems!







6. How will you standardise work 100%?



•On-time delivery •Inventory •Lead-time

•Customer defects •Scrap •Rework

•Capacity losses •Downtime •Scrap & Rework

•Labor productivity •Scrap & rework •Safety

•Team morale •Skills development •Small improvements

•Recurring problems •Firefighting •Poor problem solving

Typical Problems Countermeasures or analysis tools

•VS Mapping •Flow of product •Pull system / kanban

•Abnormality detection •Stop the machine •Process Cpk

•6 losses: OEE •OA/Maintenance •Problem solving

•Job Instruction •Standardised work •Motion analysis

•TWI/Job Relations •TWI/Job Instructions •TWI/Job Methods

•PDCA •Root cause analysis •Recurrence prevention

Key Questions

Key questions

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OSKKK

A good way to work on continuous improvement is following the OSKKK method

OSKKK stands for the following:

• Observe

• Standardize materials, motions, tasks and management

• Kaizen 1 – Improve information and materials flow and process

• Kaizen 2 – Improve equipment

• Kaizen 3 – Improve layout

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1. Observation

For all operations:

• Take the time to see what is happening in the work area by watching multiple cycles of the same process

• Watch more than one person performing the process and note where standardization is lacking, especially where it affects quality or productivity

• Document by writing the individual process steps in the sequence they occur

• Identify the origins of variation in both flow of information and flow of materials

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2. Standardization For materials, motion, tasks and management; defined as the current optimized sequence of the process steps followed by the team members to ensure quality, safety and productivity

• Prioritize where standardization is most critical to the organization based on observations or data

• Observe all team members’ various methods for performing the task and decide on the current standard (best for quality, safety and productivity)

• Have all team members work to the current standard while improvement ideas are being discussed

• Input 5S to promote simplified and productive standardization to be put in place

• Work to minimize/eliminate problems and interruptions to the process using problem-solving techniques

• Ensure all flows and decision points in the process have a standard methodology 26


3. Kaizen One: flow & process

Information and materials first; least cost to implement (€)

• Understand and map process flow (process mapping)

• Understand and map material flow (value stream mapping)

• Improve flow of material and information to the work area

• Identify all non-value adding time in both information and process flows, then work to eliminate or minimize it

• In business processes and material flows, work to reduce throughput time

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4. Kaizen Two: equipment

Medium cost to implement (€€)

• Look at the set up time (SMED) and work to reduce it

• Look to improve feeds and speeds (reduce machine cycles)

• Use OEE as the measure to drive improvements

• Understand operator workload in comparison to machine cycle times, eliminate forced waiting

• Look for total productive maintenance improvements

• Look to simplify machines

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5. Kaizen Three: layout Most cost to implement (€€€)

• Collect data: process flows, capabilities, new products, bottlenecks, OEE, value stream maps, information flows, etc.

• Minimum of three layout proposals, all showing flow arrows and complete correlation matrixes

• New layouts to consider all lean principles and remove non-value added work to justify costs

• Should work to improve the man-machine-materials ratio

• New machinery only after working to improve existing machines and incorporating all learnings into specifications for the new machinery

• Simulate the new layout either marking the floor or with cardboard mock-ups of the equipment

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Good luck on your Lean journey!

Toyota key questions and OSKKK par René Aernoudts, Lean Global Network - Lean Summit France 2014

Leadership & Management

Transcript of Toyota key questions and OSKKK par René Aernoudts, Lean Global Network - Lean Summit France 2014