VIEWING SUPPLIERS AS ONE THEY HAVE OUR SAME DESIRES

Transcription

1 VIEWING SUPPLIERS AS ONE THEY HAVE OUR SAME DESIRES Mr. Russ Scaffede Mr. Mark Loscudo OUR BACK GROUNDS Russ Mark GM Owens Corning Fiberglass Corp. Toyota Manufacturing Wilson Sporting Goods Co. Consultant Faurcia, (Tier 1 Automotive) Donnelly Corp Steinhauser Printing Tiara Yachts Smith Midland Corp. Toyota Boshoku America Board of Examiners, Shingo Prize Semi-retired, trainer for Operational Excellence And Consultant Recipient of the Shingo Prize and Industry Week's Best Plants Award WHAT I(RUSS) DO NOT KNOW OR RELATIVELY NEW AT: Precast industry and business systems We do not know a lot about purchasing We do not know a lot about your suppliers WHAT WE DO KNOW You are not automotive, Sporting goods, or Yacht builders You have manufacturing practices which are mostly based off mass production (Henry Fords Mass System) You have Suppliers, Employees, Owners, Customers The process of TPS (lean) based on continuous improvement will work for you also WHAT DO YOU WANT TO LEARN FROM THIS SESSION? INTRODUCTION TO TPS (LEAN) NPCA 1

2 WHERE DOES THE WORD LEAN COME FROM? WHERE DOES THE WORD LEAN COME FROM? FROM THE BOOK THE MACHINE THAT CHANGED THE WORLD, BY JAMES WOMACK, REFERRING TO THE TOYOTA MOTOR COMPANY. THE JAPANESE DID NOT HAVE A WORD FOR IT. IT WAS JUST THE TOYOTA PRODUCTION SYSTEM, OR TPS DEFINITION OF A LEAN SYSTEM DEFINITION OF STANDARDS FROM WEBSTER S Developing a lean enterprise SYSTEM allowing for the setting of STANDARDS aimed at CONTINUOUS IMPROVEMENT by ALL team members through the CONSTANT ELIMINATION OF WASTE. Something used as a rule or BASIS OF COMPARISON to evaluate quality, quantity, value, etc Some names you will hear during this presentation and should get to know: Advanced Product Planning T P S Achieving Lean Leadership Mr. Tiachii Ohno: Founder of the Toyota Production System, (TPS) Mr. Fujio Cho: Retired, Honorary Chairman of Toyota Frederick Taylor: Principles of Scientific Mgt Mr. Shiego Shingo: Toyota Production System Edward Deming: Statistical Quality Control Mr. Bruce Hamilton: President of GBMP Financial T P S Corporate Management Team TPS Sales TPS Tooling Engineering Manufacturing Highest Possible Quality TPS Customer Customer At lowest possible cost Customer Advances Process Product Launch Life Cycle R & D Cycle Of Product (Updated Improved Standards) (Continuous Improvement) 12 NPCA 2

3 Mass Production 101 Mr. Henry Ford wrote a book entitle Ford Today And Tomorrow in My Superior at Toyota Brilliant process management is our strategy. We get brilliant results from average people managing brilliant processes. We observe that our competitors often get average (or worse) results from brilliant people managing broken processes. Mr. Fujio Cho Former President & Current Chairman of Toyota Some names you will hear during this presentation and should get to know: Mr. Tiachii Ohno: Founder of the Toyota Production System, (TPS) Mr. Fujio Cho: Retired, Honorary Chairman of Toyota Frederick Taylor: Principles of Scientific Mgt Mr. Shiego Shingo: Toyota Production System Edward Deming: Statistical Quality Control Mr. Bruce Hamilton: President of GBMP 15 LEAN IS NOT ONLY FROM JAPAN! SCIENTIFIC PRINCIPLES OF MANAGEMENT Scientific Principles of Management Quality Control Concepts Ford Mass Production System TWI Materials Etc. How to study operations for improvement Time and motion study Fostered key developments in materials science and cutting tool methods Many other areas NPCA 3

4 Deming Leadership in Quality Training Within Industry Line operator tracking data on critical characteristics Hand drawn trend chart with upper and lower statistical control limits Highly successful U.S. Department of Defense Program Transferred to Japan post WWII during occupation Job Instruction Job Relations Job Methods TWI material introduced to Toyota in early 1950 s. Many consider this to be part of the roots of Lean. Toyota examples from 1950 s & 60 s following the advice of Deming and many others OR Lean Manufacturing System QUESTION AND ANSWERS Total Employee Involvement Competency Participation Lean Manufacturing System Level Production Machine Reliability Just-In-Time Visual Delivery System Preventative Maintenance Total Productive Maintenance Stop the Line Traffic Light System Mistake Proofing In-Station-Process-Control 21 FOR TODAY WE WILL FOCUS ON DELIVERY AND QUALITY RELATIONS. PRICING NEGOTIATIONS ARE A SEPARATE TOPIC INFINITY DIAGRAM BREAKOUT SUPPLIERS: WHAT CAN OEM DO TO ASSIST YOU BETTER? OEM: WHAT CAN SUPPLIERS DO TO BETTER ASSIST YOUR OPERATIONS? NPCA 4

5 SUPPLIER RELATIONSHIP AT TOYOTA AND DONNELLY Toyota Separation of roles and responsibility Purchasing/Quality/Supplier Readiness Manufacturing support but allow QC to handle (Toyota examples here) Accept as 100% good product until proven wrong Containment and Sort process Supplier Quality Control Board in receiving Suppliers are an extension of the company Value stream map with suppliers Give exact details of what you expect and stick to this Sharing in suggestions together Always available to come to assist if you haven t proven you are now out of trouble. Two way supplier conferences DELIVERY Money put into raw materials or into finished stock is thought of as live money. It is the money of business, it is true, but having raw material or finished goods in excess of requirements is waste which, like every other waste turns up in high prices and low wages. ALL MANUFACTURING OR SERVICES IS A FLOW PROCESS FROM RAW,), MATERIAL (INFORMATION), IN THE EARTH TO FINISHED GOODS THE FINAL CUSTOMER MR. CHO WORKED WITH MR. OHNO ON SUPPLIER TRAINING FOR TPS VALUE STREAM MAPPING TRUE BEGINNING I want to buy at lowest cost Expect 100% quality Expect on time delivery Supplier I want to sell at the highest possible price and give 100% Quality I want to buy at lowest cost Expect 100% quality Expect on time delivery OEM I want to sell at the highest possible price and give 100% Quality Happy Customer I bought at the best price On time and great quality OBSERVATIONS AT TOYOTA AND DONNELLY First we must have your house in order of what is expected All information the supplier needs to perform highest quality Understanding of process if quality fails Supplier selection and relationship Trust Toyota View, One total values stream Mr. Ford felt the same in the 1920 s NPCA 5

6 OBSERVATIONS AT TOYOTA Supplier quality was separate from purchasing All Annual negotiations was with purchasing (yes, they did know quality performance) plant quality issues were handled by the quality department All suppliers were expected to deliver 100% quality parts and no receiving inspection If poor quality found, QC department begin 100% inspection, supplier called in or 3 rd party sort performed. OBSERVATIONS AT TOYOTA Supplier is expected to resolve the issue and communicate the problem solving process Toyota (good lean companies) is always available to come to the supplier and assist with issues (if the supplier requests the assistance) Remember this is a trust relationship so no stone throwing or concern of demanding money from this request WHAT SHOULD YOU DO WHEN YOU GO BACK TO YOUR OPERATIONS NEXT WEEK? WHAT SHOULD YOU DO WHEN YOU GO BACK TO YOUR OPERATIONS NEXT WEEK? 1. GO NARROW, GO DEEP 2. PICK A SMALLER SUPPLIER TO WORK WITH 3. BEGIN TO DEVELOP A SUPPLIER PROCESS a. MEET WITH THAT SUPPLIER b. DISCUSS WITH YOUR SUPPLIER WHAT IS IMPORTANT TO YOU TO MEET YOUR OPERATIONAL GOALS c. DISCUSS WHAT IS IMPORTANT TO YOUR SUPPLIER TO MEET THEIR OPERATIONAL GOALS WHAT SHOULD YOU DO WHEN YOU GO BACK TO YOUR OPERATIONS NEXT WEEK? WHAT SHOULD YOU DO WHEN YOU GO BACK TO YOUR OPERATIONS NEXT WEEK? d. ESTABLISH SOME MUTUAL OBJECTIVES FOR THE NEXT 6 MONTHS INCLUDING A FEW METRICS e. FOCUS ON PROCESS NOT SO MUCH LAGGING INDICATORS f. SET UP REGULAR CROSS FUNCTIONAL MEETINGS TO REVIEW THE CURRENT STATE BASED ON THE METRICS AND THE NEXT LEVEL OF IMPROVEMENT g. FOLLOW PDCA PROCESS, (PLAN, DO, CHECK ACT) h. RECOGNIZE AND CELEBRATE i. SHARE THE RESULTS OF THE IMPROVEMENT j. EXPAND TO YOUR NEXT SUPPLIER PARTNER NPCA 6

7 QUESTION AND ANSWER PERIOD NPCA 7