GOLD MINING WITH KAIZEN BLITZ Worcester APICS Chapter February 9, 2012 Marino Associates, LLC 20121.

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2 GOLD MINING WITH KAIZEN BLITZ Worcester APICS Chapter February 9, 2012 Marino Associates, LLC 20121

3 CREATIVITY “ You can’t solve problems with the same mind that created those problems in the first place.” Marino Associates, LLC 20122

4 KAIZEN 1.Helps simplify existing processes with minimum money and maximum use of people 2.Strive for radical change in basic processes and work flows 3.Driving results in continuous quick hitting projects linking and accumulating these projects into major improvements in a specific value chain 4.Objective is to achieve incremental improvement to create more value with less waste Marino Associates, LLC 20123

5 Primary Barriers To Lean Push Back from Middle Management Lack of Implementation Know How Employee Resistance Supervisor Resistance Marino Associates, LLC 20124

6 Kaizen Gold Mining Presents A Team With:  How To See  How To Think  How To Feel  How To Rapidly and Effectively Deploy Their Improvement Ideas Marino Associates, LLC 20125

7 FINDING THE GOLD Investigate Where To Mine Have The Correct Tools To Mine With Know How To Mine Know When You Find The Gold Develop Processes For Continuous Results Marino Associates, LLC 20126

8 WHERE TO MINE Select A Clear And Measurable Project Management Support and Management enthusiasm Satisfy A Perceived Business Need Select A Visible Process Select A Confidence Builder Make It a Team Effort Management Support Of The Teams Change Simply Easy To Understand Process People Based Project A Self Contained Project Allows contribution by all employees – not a technical exercise Marino Associates, LLC 20127

9 KAIZEN TOOLS Education And Training –Process Mapping –5S Process And Audits –5 Whys –Time Observations (Walk the Gemba) –Load Analysis –Design of Experiments (DOE) General Observation Lean Tools (SMED, Pull, Mistake Proofing, Standard work) Kaizen Education Visual Controls Marino Associates, LLC 20128

10 Ten Kaizen Principles 1.Get rid of old assumptions 2.Don’t look for excuses 3.Say “No” to the status quo 4.Don’t worry about being perfect 5.Dose not require money 6.If something is wrong, fix it on the spot 7.Gold Mine for good ideas 8.Ask “Why” 5 Times 9.Look for wisdom from the group 10.Never stop doing Kaizen Marino Associates, LLC 20129

11 Selecting Kaizen Projects What to avoid with initial projects Out of control processes Unreliable equipment Incapable equipment Interdependent processes Improvement is not seen as necessary A process that may soon be obsolete Process producing “C” items for “C” Customers Marino Associates, LLC 201210

12 Types of Projects Productivity improvements –Typical goal: improve productivity by 30% Changeover or setup time improvements –Typical goal: reduce setup time by 90% One piece flow –Typical goal: reduce inventory by 50% Pull system projects –Can be difficult as initial projects – get experience first! Marino Associates, LLC 201211

13 The Team 3 to 10 people From across all levels and functions impacted by the project Include experts – if they have open minds Include people with prior kaizen experience Include outsiders from unrelated functions to obtain different points of view –“Dumb” questions often stimulate innovative thinking Marino Associates, LLC 201212

14 Support and Infrastructure Eliminate interruptions for team members –No cell phones –No visitors –Dedicated conference room –Eat together Supplies –Flip charts –White board –Snacks Management support –Team members have full support of management –Responsibilities are covered to eliminate interruptions Marino Associates, LLC 201213

15 Conference Room or Gemba? Important to “go to the “Gemba” –“Gemba”: where the process actually occurs Kaizen can happen right on the factory floor or information can be gathered at the process Conference room can be used for analysis and discussion Don’t be afraid of going back to the Gemba to challenge and test ideas Marino Associates, LLC 201214

16 Kaizen “Blitz” Total focus on a defined process to create radical improvement in a short period of time Dramatic improvements in productivity, quality, delivery, lead-time, set-up time, space utilization, work in process, workplace organization Typically five days (one week) long Marino Associates, LLC 201215

17 TYPICAL KAIZEN BLITZ Education  KAIZEN  Lean  Blitz process  One piece flow  5S  Takt time Form into teams  Team training Review target area  Tour  Process instructions  Blueprints Clean area  Floors  Machines  Cabinets Marino Associates, LLC 201216 Day One:

18 TYPICAL KAIZEN BLITZ Start cell designs 1.Brainstorm flow (type of machines) 2.Identify utilities 3.Identify tooling 4.Identify inventory (signaling) 5.Identify type of parts (SMED) 6.Identify inbound and outbound suppliers and customers (carrier control) Marino Associates, LLC 201217 Day Two:

19 TYPICAL KAIZEN BLITZ Rough out new cell design 1.Machine and bench placement 2.Tool and fixture placement (5S) 3.Utility drops 4.Hand tool storage 5.Kanban squares (size carriers) 6.New setup reduction methodology 7.Chalk up floor Some teams “split up” into sub teams Marino Associates, LLC 201218 Day Three:

20 TYPICAL KAIZEN BLITZ 1.Move machines and connect 2.Move tools and fixtures onto/into position 3.Move inventory into Kanban areas 4.Practice “rapid” setup/changeover 5.Run cell 6.Start documentation 7.Painting  Machines  Lines on floor  Etc. Marino Associates, LLC 201219 Day Four:

21 TYPICAL KAIZEN BLITZ 1.Realign cell 2.Make changes/adjustments, etc. 3.Install sustaining processes  Education/training  Documentation (step-by-step)  Measurements  Control boards  Disciplines  Safety 4.Final cleanup  Touch up, painting etc. 5.Final presentation 6.Victory dinner Marino Associates, LLC 201220 Day Five:  Refine

22 Kaizen Blitz Rules Be open to change Stay positive Speak out if you disagree See waste as an opportunity No blame environment Treat others as you want to be treated Ask the silly questions, challenge the givens Creativity before capital Understand the data and principles Just do it! Marino Associates, LLC 201221

23 Potential Roadblocks Too busy to study it A good idea but the timing is premature Not in the budget Theory is different from practice Isn’t there something else for you to do? Doesn’t match corporate policy It’s not improvement – it’s common sense I know the result even if we don’t do it Fear of accountability Isn’t there an even better way? Marino Associates, LLC 201222

24 Identify the Customer Value added is always determined from the customer’s perspective. Who is the customer? Every process should be focused on adding value to the customer. Anything that does not add value is waste. Some non-valued added activity is necessary waste (“NVA-R”) –Regulatory –Legal Marino Associates, LLC 201223

25 Observe the Current Process Crucial first step in process improvement Deep understanding of the existing processes and dependencies Identify all the activities currently involved in developing a new product Observe the process first hand Flowchart the process Take measurements – time, yield, travel distance Identify Value Added (VA), Non-Value Added Required (NVA-R), and Non-Value Added (NVA) Generally creates more questions than answers Marino Associates, LLC 201224

26 Types of Waste Overproduction Excess inventory Defects Non-value added processing Waiting Underutilized people Excess motion Transportation Marino Associates, LLC 201225

27 Flowchart Marino Associates, LLC 201226

28 Identify VA, NVA-R, and NVA Marino Associates, LLC 201227

29 Identify Root Causes Flow Charts Cause and Effect Diagrams Check Sheets Histograms Pareto Charts Scatter Diagram Control Charts Marino Associates, LLC 201228

30 Develop the Future State Marino Associates, LLC 201229

31 Implement the New Process Plan –What specific changes need to occur –In what sequence –Resources needed – get commitment –Impact on existing activities and functions –Responsibilities Communicate –Who, what, when Implement –Execute the plan Modify Marino Associates, LLC 201230

32 Execute Develop a concise, achievable milestone plan Communicate the plan to everyone –Suppliers –Team members –Customers Track activities in public Celebrate small victories and publicly analyze failures Marino Associates, LLC 201231

33 Typical Results 40 – 60% reduction of lead time 10 – 15% productivity improvement 10 – 20% reduction in rework Improved communication between functions and departments Clearly defined customer needs throughout the value stream Improved customer satisfaction Marino Associates, LLC 201232

34 Toyota Toyota implements one million ideas each year-That’s 3,000 ideas per day. Some of those ideas are single hits, some are home runs. How many can your company develop in a year? Marino Associates, LLC 201233

35 Did you strike gold? Do you have an organization with passion for improvement? Do they have a patient for persistence? Are you demonstrating a relentless effort to remove barriers to flow and enhance organizational performance? Marino Associates, LLC 201234

36 SUCCESS Utilizing strategically employed Kaizen Events your company can deliver superior customer value, resulting in faster goods and services, at lower cost, and with higher quality. Marino Associates, LLC 201235

37 MARINO ASSOCIATES, LLC THANK YOU FOR ATTENDING THIS SESSION CALL OR EMAIL MARINO ASSOCIATES FOR MORE INFORMATION ON OUR PROGRAMS, EDUCATION, AND ASSESSMENT PROCESS Phone 860-623-2521 Email-danam333@aol.com Web- www.damarinoassociates.com Marino Associates, LLC 201236