Developing a Continuous Improvement Culture

A Management
g Perspective
p
What is CI?

• A long term people & process oriented programme

• Customer driven
• Using
U i d data
t tto iimprove & sett standards
t d d
• Using employees to work together to improve

So that CI becomes
“that’s the way we do it here”
What are the benefits of CI?
• Typically 25 to 30 good suggestions per employee, per year, and to
have over 90% of those implemented
implemented. (Toyota had 75
75,000
000
suggestions from 7,000 employees and 99% were implemented).
• Small improvements
p add upp to major
j benefits - improved
p
productivity, improved quality, better safety, faster delivery, lower
costs, and greater customer satisfaction.
• Employees
E l fi
find
d work
k tto b
be easier
i and
d more enjoyable
j bl - resulting
lti iin
higher employee moral and job satisfaction, and lower turn-over.
• CI reduces waste in areas such as inventory
inventory, waiting times
times,
transportation, worker motion, employee skills, over production,
excess quality and in processes.
• CI improves space utilisation, product quality, use of capital,
communications, production capacity and employee retention.
The winning formula

Q
E=QxA

A
Effectiveness = Quality of problem solving skills x cultural Acceptance
E=QxA

Quality of problem solving skills

• Like any new activity people have to practice to get good
at it
• Training in problem solving skills
• Facilitators to lead projects 1%
1%-2%
2% of workforce
• Time and resources to make improvements and develop
skills – critical mass >50% of workforce involved
• Coaching, support and feedback system
Manager/strong partner

I think and
solve problems

Because they do Because they don’t

I don’t think or
solve problems

Operator/weak partner
Problem solving tools

Kaizen/Lean Six-Sigma
• People/Team based • Structured data centric
structured modules problem solving
• Elimination of waste methodology
• Elimination of variation
D efine the exact focus of the improvement project
WORLD CLASS M easure current performance against agreed targets
CONTINUOUS IMPROVEMENT A nalyse the data to find the causes of variation
PROBLEM SOLVING TOOLS
I mprove the process to fix the causes of variation
ORKFLOW

ANGES TO
CAPACITY

C ontrol the process so that it stays that way

EFFECTIVE EQUIPMENT
QUALITY
AND LOW INVEENTORY

ALWAYS AVAILABLE
RIGHT FIRST TIME
OW
WORK FLO
ONTINUOUS WO

TOOL CHA
INCREASE M/C C

EVERY TIME Q
SMED
D

TQM

TPM
QUICK
CO

WORKPLACE ORGANISATION
ELIMINATION OF WASTE
 Waste Elimination WASTE

Over Waiting Transport Inefficient Inventory Operator Defects

Production Process Motion

Operation 55555
Delay Why??
Wh
Why?
Inspection Why?
Storage Why?
Transportation Why?

Man Method

1 2 3 4 5 Material Machine

5 Core
C Modules
M d l P bl
Problem Solving
S l i Tools
T l
Workplace Organisation

Establish norms 5S ‐Housekeeping

ST
RA
5S Housekeeping and
d respect them
h

IG
RT

HT
SO

EN
Standard Ops.

25
18
Samedi

2
11

1
24

31
4

17
10

30
Vendredi

23
16
9
Jeudi

29
2

15

22
Mercredi

28
1

21
14
Mardi

27
13

20
Visual Controls

6
Lundi

26
19
12
Dimanche

5
YES NO 5
Skill M
Monitoring
it i SUSTAIN

1
2

4
Pro
Pro

Pro
P1 P2 P3 P4

ST
SI DA
AN
M R

3
4 IFY ISE
PL D

P
EE
SIMPLIFY

SW
1
50
ONE
recipe
Visual
recipes
Example : Skills matrix
documented
Controls
ELECTRO MECHANICAL SPECIALISTS
Mat'l Tie
Work Station #'S 4101 4102 4104 4105 4106 4107 4108 4109 4116 4116 4118 4111
4103
Handling Wrap
Form # Form # Form # Form #
Work Description Stuff
Channel
Stuff
Top
Shelf
20 GA
Harness
14,16,
18 GA
Harness
18/20
Harness
18 GA
Asb.
Harness
PC
Brd
Harness
Heavy
Wire
Paint
Silk-
Screen
Pack
Out
Tap Licenced
50 results Quality the XXXX XXZZ YYXX ZZXY

Dorothy H.
((deviations)) first time
Ellen B.
( variation)
(no i ti )
Pat M.

LeRoy W.

Steve H.

Bill B.
Standard Ops. MAX
MIN

Lawrence D.

Diane M.

Rhea F.

Glenda M.

Legend :

Knows Can Do Can Do Can Teach Can Improve

Basics With Help Without Help Someone Else
Training the process
WorkFlow
Fishbone
Line
Pull Systems
U Line
1 Piece Flow
Takt Time
Kanban
Cells
L Line
Back to Back
Lines
I Line

2
Zeit pro Tag
Taktzeit =
Abrufe pro Tag

Kanban Signal
g
To request a new
delivery
KANBAN
SMED - Quick Tool Changeovers

Set-up is:
400
S ingle
M inute
200
E xchange of
100 D ies, tools
& fixtures
10

3
External
E t l
Before External
Before

Internal Internal

External
External After
After
 Total Quality Management / Six-sigma
δ∑x WARNING Indicates an error situation
requiring intervention
Error Proofingg Ppk CONTROL
Cost of Quality Stops production

MSA – GR&R
Cpk Prevents mistakes

Bip! Bip Listen up!

Capability/SPC 3σ 3σ
Line 12 is
stopped !!!
Reliability Visual aids

Regression 12

Design of 120 V
1.5 A

Experiments
H
Hypothesis
th i
ANOVA
4
DOE % of
MIN MIN MAX MAXAVG MEAN AMLC L AMUC L AVG RNG AVG S D SDS TDEV S DLC L S DUC L LOW
HARDNESS
HI SCALE
Turnover Failure
678 975 832 740 924 81 30.6 13.3 -9.3 70.6 670 N/A HV10

950
FREQ
Failure
850 900
Hardn e ss HV

UCL 825

750 LCL 750

Appraisal
650

550
AVG MEAN
MEAN
675

600

525
Appraisal
450 450

Prevention
1

13

17

21

25

29

33

37

41

45

49

53

57

61

65

69

73

77

0 5 10 15 20 25

FREQ
Prevention
80.0
95
Hard ne ss HV

60.0
UCL 80

LCL 65
40.0
AVG SD 50

STDEV
20.0 35

20

0.0 5

Regression Analysis MSA ‐ GR&R

1

13

17

21

25

29

33

37

41

45

49

53

57

61

65

69

73

77

0 2 4 6 8 10 12
Total Preventative Maintenance
Effectiveness / INSPECTION TAG

TPM No.:

Capability
Date of Inspection Department Team Inspector

Machine Name & Number

Description of Malfunction

Autonomous Corrective Action

Predictive
Preventative
Planned Date Person Responsible Planned Action verified by:
of Action Completion Date

Preventive maintenance
Predictive
maintenance
Autonomous
maintenance

Reactive
maintenance time

5 9Idling and minor stoppages

9Equipment failure
9T l changes
9Tool h 9Scrap/rework
9Start-up losses
9Set-up/
Calibr
05/87

Simplify Access...
adjustments
F

9Reduced
Numerous
bolts
Hinges Pear holes Grooves
E
speed

Handles Windows
TPM = elimination of waste + continuous improvement
 Tools - Problem Solving Tools

60 100 % 55555
40
80 Why?
60
20 40 Why?
0 20 Why?
A B C D E F
Why?
Pareto 80%/20% Why?
Value stream mapping
5 Why Root Cause
FOR AGAINST

Start
process
Input Operation
Decision

No
Yes
Operation
Decision

No Yes
Operation Output End 8D
Operation Operation Operation
Force field
Delay Man Method

Inspection
Storage
Transportation Material Machine
//// /// ?
Process mapping Fishbone Tally Chart Brainstorm
E=QxA

Acceptance within organisation

• Management commitment
• M
Management t supportt system
t
• A mission/strategy/objectives/targets to aim for
• Delegation of responsibilities and authority to sections
• Training in problem solving skills
• Time and resources to make improvements and develop
skills
• Facilitators
F ilit t tto lead
l d projects
j t
• Communication and feedback system
• Learning dissemination system
Dependency Loop

M
Manager/strong
/t partner
t

I think and
solve problems

Because theyy do Because they don’t

don t

I don’t think or
solve problems
Learned helplessness
Operator/weak partner & low esteem

Both must change

Solution to Dependency Loop
Manager/strong partner

I think and
solve problems

Don’tt solve other peoples problems!!!

Don Because they do Because they don’t
don t

I don’t think or
solve problems
Learned helplessness
Operator/weak partner & low esteem

• Set smart objectives

Support
• Support & guide
• Coach
Guide
– Situation
– Options
– C
Consequence Solve
– Select Problems
Learn to co‐operate &
t tb
trust by giving
i i eachh other
th
new experiences

Frustration drives people back in to dependency

13/09/2008 Managing Kaizen 16

Bolman’s Change Model

1. Denial Stage 4. Commitment

• Numbness • New
External/Environment
• Reaction internal objectives
• Disbelief • Action plans
Denial Commitment • Team work
Past Future

Resistance Exploration
2. Resistance 3. Exploratory
• Anger Internal/Self • Begin to
• Anxiety acceptt the
th
• Fear inevitability
• Verbal reaction • Negotiation
• Looking for
benefits
Traditional Method vs Kaizen

The traditional
method
An ANALYSIS COMMITTEE
The KAIZEN
makes
RECOMMENDATIONS
method
MANAGERS A MULTIDISPLINARY TEAM
take the
DECISIONS analyses the situation,
An IMPLEMENTATION takes the decisions,
COMMITTEE takes actions and
implements
CHANGES implements the changes
The EMPLOYEES Weeks
ADAPT and A FEW DAYS
to changes months
Fire Fighting vs CI

Fi Fighting
Fire Fi hti Spiral
S i l C ti
Continuous IImprovementt SSpiral
i l

Many Problems, Very few

waste,
t reworkk problems

Few Time to think

Continuous
Improvement Fire fighting about
improvement
efforts improvements

Focus on
present Focus on future
The Route to CI

1. Establish the need

2. Create a sense of direction
3. Build a supportive climate
4. Launch the initiative
5. Maintain the momentum
1. Establish the Need
• Benchmarking
• L
Long range fforecasting
ti
• Highlight declines
• Share market, company performance and competitor
information with everyone
• S.W.O.T./S.T.E.P.
S W O T /S T E P analysis
l i

Show need in a clear and

meaningful
i f l way
2. Create a Sense of Direction
• Create a vision - paint a ‘picture’/anecdotes
– strategy
– values & behaviors
– goals
• IInvolvement
l t in
i & communication
i ti off vision
i i
• Budget plans - how does it relate to individuals
• Show the whole plan not just their bit
• Show how the resources are to be used
• Keep reinforcing the vision
– mission statements
– news letters
– CI boards
– mention at every opportunity
3. Build a Supportive Climate

• Define roles & criteria for success

• Communicate values, beliefs & behaviors
• Get managers to adopt the ‘smart’ coaching style
• Develop alternative job roles for middle management
• Demonstrate management commitment
• Seek out and council worried employees
Some Turn Offs
Wet Blankets
• I am too busy right now
now.
• It’s a good idea, but the timing is wrong.
• It is not in the budget.
g
• We don’t do it like that here.
• Theory is different from practice.
• That’s a good idea BUT...
• Isn’t their something else for you to do?
• It doesn
doesn'tt match corporate policy
policy.
• It isn’t our business. Let someone else think about
it.

People are not the problem. Blaming them will not solve the
problem. The answer is to make people
p p p problem
p solvers!
4. Launch the Initiative
• Not big bang and fizzle out!
• Start small and build
– Training
– appoint a coordinator
– start with one initiative
– see it through!
• Publicise initiatives
– announcements
– display boards KAïZEN Processes:

• Praise successes & good tries INFO KAIZEN

Opportunities
For Waste Elimination
Date completed
Opportunity Improvement Who Date

•Body text

SMED Non- Lead-time

conformance
5. Maintain Momentum
• Reinforce as often as possible
• Communicate results
• Measure progress
• Give support
pp - both financial & verbal
• Start new initiatives based on the theme
– refresh notice boards
– communicate in other ways
– ask team to give presentation
– appoint new facilitators
– start
t t nextt phase
h
• Management commitment & stamina
Sabotage
g to enthusiasm
• Enthusiasm
• p
Co-operation
• Co-operation with assistance
Acceptance • Acceptance
• g
Passive Resignation
• Indifference
Indifference •
•
Apathy
Doing only what is ordered
• Regressive behaviour
• Non-learning
Passive resistance • Protests
• W ki tto rule
Working l
• Doing as little as possible
• Slowing down
Active resistance • Personal withdrawal
• Committing deliberate errors
• Spoilage
• Sabotage
Engage the Champions

Champions Straw Watchers Scallywags

y g
Refuseniks
20% 30% 30% 10% 10%

Convert
Some Pitfalls
• The supportive sceptic - lip service only
• B prepared
Be d tto unblock
bl k th
the llog-jam
j
• Managers get too involved
• Not setting tough but achievable targets
• Underestimating resources/effort required to finish
i iti ti
initiatives - 80/20 rulel
• Not making it someone's job to ‘make it happen’
• I’m
I’ ttoo bbusy spiral
i l
Many Problems,
waste, rework

Few
Improvement Fire fighting
efforts

Focus on
present
Next Steps

• CI steering group at top level

• Appoint a coordinator
• Identify best in class and set targets
• E t bli h a CI communication
Establish i ti & ttraining
i i plan
l
• Complete actions identified on workshop
• Identify next CI workshop
• Build systems, procedures & structures conducive to
CI
• Promote CI in your supply base

Achieve Continuous
I
Improvement t