AIDC Kaizen promotion and development African Kaizen Annual Conference Presentation by: Nkumbuzi Ben-Mazwi 02 July 2018 TOGETHER MOVING THE GAUTENG CITY REGION FORWARD
Who is the AIDC Established in 2001 by Industry & Gov. Established as an industry support centre with a focus on automotive sector. The AIDC is an implementation agency of provincial government Approx. 150 staff across multiple sites 2
SA AUTOMOTIVE Landscape 3 3
Original Equipment Manufacturer Where are the Original Equipment Manufacturers, OEMs, Located in South Africa? Uitenhage Rosslyn Johannesburg Port Elizabeth Lesotho East London Durban 4
Auto Sector at a Glance Indicator Performance 2015 2016 Consumer Price Index (CPI) 4,6% 6,3% South Africa s Gross Domestic Product (GDP) (current prices) R4 049,8 billion R4 337,0 billion Broader automotive industry contribution to GDP 7,5% 7,4% Vehicle and component production as % of South Africa s manufacturing output 33,5% 33,0% Average monthly employment by vehicle manufacturers 31 260 30 953 Automotive component sector employment 82 100 82 000 Capital expenditure vehicle manufacturers R6,6 billion R6,4 billion Capital expenditure component sector R2,8 billion R2,6 billion Total South African new vehicle sales 617 648 units 547 406 units Total South African vehicle production 616 082 units 599 004 units South Africa s vehicle production as % of Africa s vehicle production 64% 58,5% South Africa s global vehicle production ranking 22nd 22nd South Africa s global vehicle production marketshare 0,68% 0,63% Vehicle ownership ratio per 1 000 persons 180 180 Total automotive export earnings R151,5 billion R171,1 billion Automotive export value as % of total South African export value 14,6% 15,6% Number of export destinations 140 154 Number of export destinations with export values more than doubling year-on-year 30 52 Topautomotive country export destination in rand value terms Germany Germany Total South African vehicle exports 333 847 units 344 859 units Value of vehicle exports R101,9 billion R118,1 billion Topvehicle export destination in volume terms UK UK Value of automotive component exports R49,6 billion R53,0 billion Top automotive export component category in rand value terms Catalytic converters Catalytic converters Topautomotive trading partner in rand value terms Germany Germany Topautomotive trading region in rand value terms EU EU Source: AIEC, Econometrix, NAAMSA/Lightstone Auto, NAACAM, OICA, SARS Top country of origin fortotal automotive imports in rand value terms Germany Germany Topcountry oforigin forvehicle imports India India Source: AIEC, Econometrix, NAAMSA/Lightstone Auto, NAACAM, OICA, SARS 5
SA Automotive Value Chain Component Assembly and Manufacturing Vehicle Assembly (OEMs) Retail Sector Total Number of Companies Tier 1 (Supply directly to OEMS) Tier 2-3 (Supply to Tier 1 and 2) 480 120 360 Total Number of Jobs 82 790 Total Number of OEM S 22 Total number of Passenger and Light Commercial OEM s Total Number of Jobs 29 700 7 Total Number of Retail Companies Total Number of Service and Repairs Companies Total number of Fuel and garage stations Total Number of Dealerships Total Number of Tyre Dealers 7 500 1 898 4 551 1 768 1 6 506
KAIZEN AIDC APPROACH and AWARD SYSTEM 7
AIDC Kaizen standardized process flow Activity 0 1 2 3 4 5 6 7 8 9 10 11 12 13 Implementing committee Management and Union Awareness Orientation Rollout strategy meeting Train the trainer Company wide mass awareness Value Stream Map Management strategy meeting Model Area 1 (A-Team) Model Area 2 (B-Team) Model Area 3 (A-Team) Model Area 4 (B-Team) Implementing committee monthly project review meeting SWOT Company MRM Company MRM Company MRM Company MRM Company MRM Company MRM Company MRM Company MRM Company MRM Company MRM Monthly champion review meeting External and Internal Responsibility matrix Internal Project review meeting (AIDC) Senior Project Manager and Champion Project Internal Project review meeting (AIDC) Senior Project Manager and Champion Project Internal Project review meeting (AIDC) Senior Project Manager and Champion Project Internal Project review meeting (AIDC) Senior Project Manager and Champion Project Customer satisfaction feedback report Customer satisfaction feedback report Customer satisfaction feedback report Customer satisfaction feedback report Management commitment, company and union awareness, monthly review meetings, Recognition, TEI (Total Employee Involvement)
KAIZEN INDUSTRY BUY IN Representatives : 1. JMAC 2. AIM (Host Supplier) 3. The Dti 4. AIDC 5. Suppliers 6. NAACAM 7. ASCCI 8. NAAMSA
KAIZEN FACILITATORS TRAINING All facilitators from different companies
Kaizen Kick-off event TPM Kick-off at Autoliv 12 December 2014 *Attended by NAACAM director
AWARD SYSTEM- SCORING CRITERIA
AWARD SYSTEM PANEL OF JUDGES Representatives NAACAM, OEM- Mercedes Benz and Lean Institute Africa
KEY NOTE SPEAKERS
AWARD OVERALL WINNER
AWARD - OPERATOR SHOP-FLOOR WINNER
KEY Stakeholder JICA and LIA (Partnerships)
Award Winners
AWARD SYSTEM- PROCESS 1. Continuous annual recognition and motivation of companies on Kaizen promotion 2. Selection and invitation of companies to participate and show case CI 3. Industry and Government support and participation 4. Standardised presentations and proccesses for the award 5. Scoring Criteria must be defined 6. Independent panel of Judges and very knowledgeable on Kaizen 7. Key support stakeholders and partners participation 8. Define categories of awards eg. Operator/employee and Management separation 9. Recognition and rewarding of excellent achievements by Senior Industry and Government representatives
AIDC Annual Best Practice Tours 8 Different manufacturing companies attended best practice tour * fully paid for by industry
JICA EXPERT TRAINERS AND APPROACH
Abnormality Management Process 1 Identify Abnormality Decide Standard and Criteria 2 Detect Abnormality 3 Stop Production by Abnormality 4 Inform Abnormality Immediately 5 Quick Countermeasures 6 Recurrence Prevention 22 22
KITTING Production Board Receiving Process Raw Material Store Wire Bulk Stock Seals MIFD Purchasing Stagnation Batch Production Supervisor Production Planner Production Planner Delivery Schedule Email EDT Portal 500 Crimp Toyota Final Test Packing Toyota 379 Test Supplier Bojan Smiths Final Test Packing Smiths SLV Bosal Process test Packing 19 M/c in total Bosal Supplier Raw Material Stores Bored Line Leader Too many operators Line imbalance Back & Fourth Movement Power Cable Layout Board Sleeving Supplier Module 23
PROBLEMS IDENTIFIED FROM MIFD 1. Stagnation and bulk production at each stage total 50 at each stage 2. Too many operators Line imbalance 3. Too much movement
OPERATION TIME Operation Time Calculation Start Finish Total Hrs Shift Time (Hours) 7:00 15:30 8:30 = 8,5 hours Shift Time (min) 510 min Less: Lunch = 30 min Less: Tea Break = 20 min Less: MDWT = 10 min Total Available Time 450 min 25
Reprogramming of Robot and forging machine
STANDARDISED WORK CHART (BEFORE)
STANDARDISED WORK COMBINATION TABLE (BEFORE) Above Takt
STANDARDISED WORK CHART (AFTER)
STANDARDISED WORK COMBINATION TABLE (AFTER) 28.5% CT improvement CT now within TAKT TIME
Challenges Commitment and leadership from an organisation leader, management and Government. Resources availability in terms of budget, qualified and experienced personnel. Kaizen Sustainability and Total Employee Involvement (TEI) National Government involvement and Prioritisation of Kaizen at Policy level 31
THANK YOU Nkumbuzi Ben-Mazwi AIDC Making excellence an attitude 32