Successful Lean Implementation for Small & Medium Companies Nobuyuki TAMARU Director JMA C Europe Milano SpA
Agenda Introduction of JMAC Lean & TOYOTA Keys for Successful Lean Implementation for Small & Medium Companies (Copyright) 2011 JMA Consultants Europe Milano SpA 1
Introduction Lean & TOYOTA Keys for Successful Lean Implementation for Small & Medium Companies (Copyright) 2011 JMA Consultants Europe Milano SpA 2
JMAC Europe Milano Founded in 1988 by joint-venture, then 100% by JMAC Tokyo in 2002 Approximately 45 Italian consultants Major clients: Manufacturers and service providers Main consulting areas: New product development Supply chain & Manufacturing Sales/After-sales sales & Distribution (Copyright) 2011 JMA Consultants Europe Milano SpA 3
Self Introduction Nobuyuki TAMARU Joined JMAC Tokyo in 1993 Moved to Milan office in 2008 Main Consulting Area: Logistics / SCM Production / Procurement BPR / Business Portfolio Restructuring Project Experience in; Italy, Switzerland, Holland, UK, France, Germany, Sweden, Russia, Romania, Japan, Korea, China, Thailand, USA, Australia (Copyright) 2011 JMA Consultants Europe Milano SpA 4
Introduction of JMAC Lean & TOYOTA Keys for Successful Lean Implementation for Small & Medium Companies (Copyright) 2011 JMA Consultants Europe Milano SpA 5
Lean Production The words; Lean Production is used at the first time in the International Motor Vehicle Program which has been run by MIT since 1970 till today. Lean Production is a summarized concept out of the study carried by this Program on Toyota Production System. (Copyright) 2011 JMA Consultants Europe Milano SpA 6
Lean Thinking VALUE James Womack Daniel Jones MAPPING FLOW PULL PERFECTION (Copyright) 2011 JMA Consultants Europe Milano SpA 7
TOYOTA Production System Kiichiro Toyoda JIDOKA Automatic machin stop for failure Taiichi Ohno JUST IN TIME Produce - Necessary product - Necessary timing - Necessary quantity (Copyright) 2011 JMA Consultants Europe Milano SpA 8
JIDŌKA Difference between 自働化 and 自動化 自働化 JIDŌKA (Autonomation) 自動化 (Automation) Machines stop if there is a Machine do not stop unless operators come problem/abnormality. (No need for operators even though there is a problem/abnormality. to stay to watch machine condition.) Not keep producing defects. Reduce the risk to Delay to find defects, keep producing defects, break machines. then break machines. Easy to get ready to supply to machines. Preventive maintenance. Easy for root cause analysis for defects. Reactive maintenance. Difficult for root cause analysis for defects. Resource Saving Labor Saving (Copyright) 2011 JMA Consultants Europe Milano SpA 9
Conflicts between Two Requirement Customer VS Industry High Service Low Price Mass Production High Quality Yes Cost Down Yes, but Short Lead Time Long Lead Time Many Variety Small Variety etc. etc. Lean Production (Copyright) 2011 JMA Consultants Europe Milano SpA 10
Do You Work? or Move? 働く 動く Work (Value Adding Motion) Tighten Bolts Assemble Components Connect Cables Move (Waste Motion) Take and Put Materials Find out Components Transfer Products Adjust Machines The Work means to change the all energy which was generated by worker to the Value Adding Motion by eliminating the Waste Motion. The Moving well is not equal to the Working well. (Copyright) 2011 JMA Consultants Europe Milano SpA 11
Toyota Spirit 3GEN principle; Go to the site, make a direct observation, and determine the facts. 現場 現物 現実 GENBA Actual place GENBUTSU Actual At part GENJITSU The place (ba) where work is done in fact (gen) The things (butsu) being the real/ physical object one s job Actual situation The real conditions (jitsu) in which work is done in fact (gen) (gen) of (Copyright) 2011 JMA Consultants Europe Milano SpA 12
7 Types of Muda (Non-Value Added Waste) 1. Muda of Over-production: Over production against plan 2. Muda of Waiting: Waiting time of worker / machine 3. Muda in Conveyance: Unnecessary transportation 4. Muda in Processing: Waste of processing itself 5. Muda of Inventory: Excess stock of material / components 6. Muda of Motion: No value adding motion 7. Muda of Correction: Defects of quality (Copyright) 2011 JMA Consultants Europe Milano SpA 13
Introduction of JMAC Lean & TOYOTA Keys for Successful Lean Implementation for Small & Medium Companies (Copyright) 2011 JMA Consultants Europe Milano SpA 14
What is happening in Small & Medium Factories in Japan? Reduce direct labor man hour to use the saved time for continuous improvement activities Productivity Improvement Shorten total lead-time to meet customer requirement and reduce risk Total Lead-time Reduction (Copyright) 2011 JMA Consultants Europe Milano SpA 15
Why dual goals? Lead-time Reduction Trade off Productivity Improvement Production Lot Size Changeover Frequency LT reduction Big Productivity decrease Less SMED Small More Need big changes Large impact for business Good exercise to improve human resource KAIZEN capability (Copyright) 2011 JMA Consultants Europe Milano SpA 16
Linkage between Goal and Tool Lead-time Reduction Productivity Improvement Today s focus 1. JIT 2. KANBAN 3. QC circle 4. Automation 5. Leveling production planning 6. Only make necessary goods for necessary quantity Methods to Find Loss Lean Production Tools 7. SMED 8. Mixed production line 9. One piece flow production 10. Multi-skilled worker 11. Multi-functional deployment 12. Labor saving 13. Inspection at each station 14. POKAYOKE 15. ANDON 16. 5S 17. Revising standards by line manager 18. TPM (self management maintenance) 19. U-shaped line/ cell production 20. Low cost automation (Copyright) 2011 JMA Consultants Europe Milano SpA 17
Loss Structure for Direct Labor l Employee e ficiency Overall Eff ation te Opera Rat Utilization Rate Employed Man Hour Operated Man Hour Standard Time Man Hour New Standard Time Man Hour Mthd Method Loss Bad product design Bad line/station layout (many walk) Bad work method (many jig change) No automation No mechanization etc. Utilization Loss Planned stop: Company event Set up change PM Unplanned stop: Lack of material, component Blocked line Tool/Jig breakdown etc. Organization Loss Line balance Lack of worker Skill Loss Variation of worker competence (unskilled operation/sabotage) Quality Loss Rework / Repair Scrap Loss Pe erformance (Copyright) 2011 JMA Consultants Europe Milano SpA 18
Productivity Improvement Steps Low value added method Method Loss Performance fluctuation Performance Loss Unutilized resource (stop time) Utilization Loss Method Improvement Work Standardization Planning & Control Optimization (Copyright) 2011 JMA Consultants Europe Milano SpA 19
Visualization & Quantification Work Standardization Method Improvement Visualization & Quantification Planning & Control Optimization (Copyright) 2011 JMA Consultants Europe Milano SpA 20
Power Delegation Small companies Yes Yes Big companies No Yes Work standards are revised once for six months in Toyota More than 1,000,000 improvement ideas per year in Toyota Train People!! (Copyright) 2011 JMA Consultants Europe Milano SpA 21
Key Messages for Lean Implementation Set the quantitative goals and commit before start. To make sure the business impact. Forget Lean tools. Learn the methods for improvement. Tools can be different depending on your business characteristics. Wrong tools or tool applications make it worse. Genba leader empowerment, training system, and career path design. For autonomous and continuous improvement For autonomous and continuous improvement. Commitment by top management Top management must go to Genba, direct actions for actual daily yproblems, and follow-up. (Copyright) 2011 JMA Consultants Europe Milano SpA 22
Be Creative, Re-think Your Model & Implementation Strategy (Copyright) 2011 JMA Consultants Europe Milano SpA 23
Contact Nobuyuki TAMARU Mobile: +39-340-4791841 e-mail: n.tamaru@jmac.it JMA Consultants Europe Milano SpA phone: +39 02 72138.318/326 fax: +39 02 8053784 web: www.jmac.it web: www.jmacglobal.com com Via Fieno 1-20123 Milano, ITALY (Copyright) 2011 JMA Consultants Europe Milano SpA 24