1 Kaizen Training Competing in the Marketplace What

1 Kaizen Training Competing in the Marketplace “What factors are important to the customer? ” John Deere - Supplier Development John Deere Supplier Development

Kaizen Training TIME: 2 The single best indicator of competitiveness Set-up or Change-over Time Manufacturing Cycle Time Product Development Time 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. John Deere Supplier Development

Kaizen Training 3 Shrinking Lead Times Order Lead Times Manufacturing 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` John Deere Supplier Development

Kaizen Training 4 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 Common Improvement Efforts Value Added Time (VA) 1% 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. John Deere Supplier Development

Kaizen Training 5 Where’s the Time in Lead Time When we look at attacking the NVA Activities in the Timeline and compare that to the original timeline: Greatest Opportunities are actually here! Non-Value Added Time (NVA) 99% of Total Lead time NVA Time 95% of Total Lead time Great Job!! Value Added Time (VA) 1% VA 5% This shows a 5 X improvement in lead time John Deere Supplier Development

Kaizen Training 6 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 4 x 4 Pickup you just ordered? ” John Deere Supplier Development

Kaizen Training 7 Some examples NVA Activities: Walking Waiting on machine cycle Unnecessary stock on hand Generating useless reports Transporting parts Unnecessary motion THE GOAL IS TO ELIMINATE THE NON-VALUE ADDED ACTIVITIES. John Deere Supplier Development

8 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. We must avoid the urge to discover more sophisticated and technological solutions to tasks we shouldn’t be doing at all. Carry out that Vision by breaking through the status quo. John Deere Supplier Development

Kaizen Training 9 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) Maintain a positive attitude Don’t’ make excuses & question current practices Think about how to do it, NOT why it can’t be done Just do it!! Have Fun!!! John Deere Supplier Development

Kaizen Training 10 Steps on Team Development Forming This is the development of a multi-functional team with a variation of backgrounds and knowledge Storming Open & honest discussion, also brainstorming Norming Stage where the group agrees how to operate as a team Performing Agreement on solutions & taking action Adjourning Closing on the continuos improvement process after 30 days John Deere Supplier Development

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 Deere Supplier Development

Kaizen Training 12 TAKT Time Calculation Production Time Available / Period TAKT Number of Required Units / Period Production Time Available / Period (one shift): Shift Time ( 8 hrs. ) Breaks - 2 @ 10 minutes Clean-up at end of shift Production Time Available: 480 mins. - 20 mins. - 5 mins. 455 mins. or 27, 300 secs. Units Required / Period (one shift): 10, 500 Units Sold Monthly 21 Working shifts / month TAKT Time: 500 Required units / shift 27, 300 secs / shift 500 units / shift 54. 6 secs. John Deere Supplier Development

Kaizen Training 13 The 5 S Housekeeping Standards First Step towards Continuos Improvement The aim of 5 S is to create an atmosphere to keep a clean, organized, safe and efficient workplace for everyone. The foundation for the practice of 5 S, comes from a Japanese program derived from these words, seiri, seiton, seiso, seiketsu and shitsuke. The 5 S’s are a conventional approach towards maintaining and improving the work place. The following words have been chosen for the 5 S acronym’s. Sort Straighten Sanitize (Safety) Sweep Sustain John Deere Supplier Development

Kaizen Training 14 Meaning of the 5 S’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. Need to decide where 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 5 S’s Sanitize (Safety) 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 5 S process. This requires that each of the S’s become a personal habit. This is the most difficult of the 5 S’s, but it is the most important factor in achieving long term success. 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 Processing WASTE Inventory Transportation TYPES OF WASTE Waiting Correction Over. Production 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 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 Copies John Deere Supplier Development

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 would be sufficient John 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 . Stabilize e ov pr Im Problem Solve Identify Waste - Following standards will only maintain, not improve, the process. - Improvement focuses on the entire process. John Deere Supplier Development