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Kaizen Training
Competing in the Marketplace
“What factors are important to the customer?”

John Deere - Supplier Development

John Deere
Supplier Development
 Kaizen Training 2

TIME: 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

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) Value Added Time (VA)

99% of Total Lead time 1%

Common Concentrated on reducing VA time,

Improvement Efforts with no attention given to NVA.

Non-Value Added Time (NVA) VA

99% of Total Lead time 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) Value Added Time (VA)

99% of Total Lead time 1%

NVA Time VA
95% of Total Lead time 5%

Great Job!! This shows a 5X 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 An activity that changes raw

Activity (VA) material to meet customer
expectations.

Those activities that take

Non Value Added time, or occupy space but
Activity (NVA) 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 4x4 Pickup you just ordered?”
John Deere
Supplier Development
 Kaizen Training 7

Some examples NVA Activities:

Walking Waiting on
machine cycle

Unnecessary Generating
stock on hand useless reports

Unnecessary
Transporting motion
parts

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 Carry out that Vision by

discover more sophisticated and
technological solutions to tasks breaking through the status
we shouldn’t be doing at all. 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. ) 480 mins.
Breaks - 2 @ 10 minutes - 20 mins.
Clean-up at end of shift - 5 mins.
Production Time Available: 455 mins. or 27,300 secs.

Units Required / Period (one shift):

10,500 Units Sold Monthly
500 Required units / shift
21 Working shifts / month

27,300 secs / shift

TAKT Time: 500 units / shift
54.6 secs.
John Deere
Supplier Development
 Kaizen Training 13

The 5S Housekeeping Standards

First Step towards Continuos Improvement

The aim of 5S is to create an atmosphere to keep a clean,

organized, safe and efficient workplace for everyone.

The foundation for the practice of 5S, comes from a Japanese

program derived from these words, seiri, seiton, seiso, seiketsu
and shitsuke. The 5S’s are a conventional approach towards
maintaining and improving the work place. The following words
have been chosen for the 5S acronym’s.

Sort Sanitize (Safety) Sweep

Straighten Sustain
John Deere
Supplier Development
 Kaizen Training 14

Meaning of the 5S’s

Sort Examine everything at the workplace & identify

what is needed and what can be discarded

Straighten 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.

Sweep Sweeping, scrubbing and cleaning of the building,

(Scrubbing clean)
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 5S’s

Sanitize Insuring that each workplace is properly

(Safety)
designed for safety. This is to protect every
member from the dangers during the
performance of their assigned tasks.

Sustain Developing the practice necessary to continually

participate in the 5S process. This requires that
(Standardize)
each of the S’s become a personal habit. This
is the most difficult of the 5S’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 REQUIRED
THINKING THINKING

Processing Transportation

Inventory TYPES Correction

WASTE
OF
WASTE
Over-
Waiting Production

Motion

WASTE NOT DEFINED WASTE IS "TANGIBLE”

REACT TO LARGE EXAMPLES IDENTIFY MANY SMALL OPPORTUNITIES
REACTIVE IMPROVEMENT -LEADS TO LARGE OVERALL CHAGE
CONTINUOUS IMPROVEMENT

John Deere
Supplier Development
 19

ELEMENTS OF WASTE

Definition Example
1. Transportation - Transporting 1. Transportation - Carrying
farther than necessary or Tools to Point of Use
temporarily locating, filing,
stacking and moving parts
(people, paper, information) is
waste.

2. Correction - Doing something 2. Correction - Redo an Activity

over is waste. Because of Error

3. Overproduction - Generating 3. Overproduction - Number of

excess paper or information, or Copies
generating information or paper
too soon in a process is waste.

John Deere
Supplier Development
 20

ELEMENTS OF WASTE

Definition Example
4. Motion - Unnecessary work 4. Motion - Tools in drawers
movements are a form of waste.

5. Waiting - Waiting for people, 5. Waiting - Meetings to start

paper and information is waste -
it stops work.

6. Inventory - Too much of 6. Inventory - Supplies

anything is waste.

7. Processing - this is waste in 7. Processing - Typed when

the process itself. Redundant handwritten would be
activities 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

Im
Problem Solve
Stabilize
pr
.

o
ve
Identify
Waste
- Following standards will only maintain, not improve, the process.
- Improvement focuses on the entire process.

John Deere
Supplier Development