kaizen system diagnosis(1)

05/03/202313:58:40 file:///tt/file_convert/54bd82e14a795948698b46c5/document.xls 1

10 LEAN SYSTEMS DIAGNOSISCOMPANY: ___________________________DIAGNOSIS PARTICIPANTS: START NOW

◄ PRIORITY KEYDIAGNOSIS DATE: _____/_____/_____ MEDIUM

PLANT: ______________________________ LOW

SYSTEM WBS ELEMENT 5 = STATE OF THE ART 4 = ACCELERATING 3 = STRUCTURED LEARNING 2 = AWAKENING 1 = UNDERDEVELOPED VISIONRATE COMMENTS ACTION TO IMPROVE

1 1.1 = 1

1.2 1

1.3 IMPROVEMENT PROCESS 1

1.4 TEAM INVOLVEMENT 1

1.5 1

ORGANIZATION FOR KAIZEN

ORGANIZATIONAL STRUCTURE

Organizational design is a work systems model structured in top-down bottom-up autonomous value streams. The value streams comprise of interactive and interdependent small group teams. Teams members contribute individual ideas to the success of the larger business unit. 4 rules in use (Work Activities, Connections Pathways, Problem Solving). These are integral to its existence.

Integrated into a single company with little departmental walls. Well organized collaborative with just 3 management levels fully disciplined.

Divided in different departments, bu work well together though skill old school departments.

Organizational structure has multiple levels of managerial controlling influences. Wide area departmental 'silos' . Monopoly of skills, monopoly of knowledge and monopoly of management. Interdepartmental protectionism and isolation are making a systematic transition plan to become a lean enterprise an administrative impossibility.

MANAGEMENT COMMITMENT

Gaining people's commitment for a change is an important component of any key business project. Leaders of change are equipped to manage the change process and employees are equipped to work through the change process. Actions demonstrate a focus on the human side of change. Sustainability and disruption levels are measured and monitored. These results indicate high commitment and return on change efforts.

In addition to basic actions to build people's commitment to a change, specific risk areas are assessed proactively to identify potential areas for action to minimize or mitigate risks associated with the change, i.e. sponsorship, capacity, culture synergy, resistance and change agent skills.

Stakeholders are identified and the need for their commitment is understood. Commitment levels are diagnosed and basic actions are done to build commitment for the change, i.e. clarify and communicate.

Changes are implemented, but they are surrounded in turmoil stress and disruptions to the business. Actions by plant management do not reflect commitment.

Long-term sustained results can not be demonstrated. Business changes, initiatives and projects focus only on the technical requirements and aspects and do not consider the human aspects of the change.

Workshops are replaced by natural work teams. The learning from each value stream is horizontally deployed to other value streams.

What is learned in workshops is taken to other similar lines. Many types of workshops are done in each area to remove the problems at the Gemba.

Workshops are conducted, follow up is done routinely by team leader and by the organization's lean support team.

A process is in place for conducting workshops, follow up is done haphazardly.

No workshops are planned so the shop floor remains unchanged.

Teams work as cross-functional body to integrate the improvement activity between shop floor and support systems. Meetings held at Gemba instead of conference room.

Workshops are done to improve the support systems for the affected value streams (purchasing, materials control human resources, finance, accounting, etc.)

Workshops are done to eliminate the muda and flow problems identified during the material and Information Flow on a pilot value stream.

Audits begin value streams using Material and Information Flow Analysis.

No improvement activity is planned and no structure is in place to make it happen.

IN-HOUSE SUPPORT OF FORMING TEAMS

Shop floor personnel given the appropriate tools and training to make their own jigs, fixtures and workstation modifications.

In house personnel to support the fabrication of jigs, fixtures, and workstation modifications.

Lean support team given some tools and a part time person to help with fabrication of jigs, fixtures and workstation modifications.

Maintenance helps with workshop support, but difficult to develop priorities, often outside maintenance people contracted.

No improvement workshop support provided at all.


1.6 2

1.7 PLANNING FOR CHANGE 1

1.8 ACCOUNTABILITY 1

1.8 RESILIENCE 5

EDUCATION AND UNDERSTANDING

All plant personnel receive 40+ hours of Lean training per year. Employees regularly participate in events that alter the current status-quo. Change is part of the culture and is expected by all personnel. Senior and middle management are capable of teaching Lean and regularly teach multiple modules of the Lean /Concepts. In addition to a formal methodology for change, all project leaders and team members understand how to recognize and address resistance, ineffective sponsorship, and other key risk factors.

Most of the plant leadership "walks the talk" and exhibits a good understanding of Lean concepts. Change management methodology is understood and how to apply it and appropriate tools for handing resistance and other risks. Change sponsors, agents and participants are educated in these areas. 75% of the leadership have attended train the trainer training.

About 50% of the plant personnel participate in some type of Lean training (F-K Way 'Lego' Lean Basics voluntary or not). Lean principles and concepts are understood and are incorporated into business projects. There is an acceptance of change but not widespread support. Some managers are seen as Change Agents and attempt to make improvements. All employees are educated on the change process and their roles within it.

Knowledge of Lean principles by plant personnel is limited. Sponsors, advocates and change agents do not have clearly defined or understood roles and responsibilities for managing the change to a Lean environment.

plant does not have a Lean awareness or education plan designed or in place. Change is perceived to be a weakness of management inability to control the plant.

Resistance is anticipated and drawn out early on in a change. Effective strategies for addressing resistance are in place. Lessons learned are captured, shared and leveraged. Change plans extend beyond the project implementation date and include actions to continue to build commitment and sustain the change. These activities are primarily owned by plant management and supported by key members of the project team

The culture is open to change and is aware that it will be met with some understandable resistance. Leaders are equipped to recognize and effectively address resistance. Diagnoses are conducted to identify any human risks to the project. Project plans are updated to include the risk management activities. These are monitored and updated throughout the project and beyond implementation.

Change plans are integrated into the Project Plan and address the needs of people to prepare, build acceptance and implement the change. These plans are formal and utilize project or staff forums for review, but the plant may underestimate the impact of people's resistance to change. Change management activities are centered on impacted employee groups. These activities are cascaded throughout the organization by change agents and managers of impacted employees.

Leaders of change make efforts to enable the organization to prepare, build acceptance and implement the change, but these efforts are inconsistent and informal. They rely on the personalities of the change leaders and are often done as a response to resistance rather than in anticipation of resistance. There is covert resistance to change that is not recognized or addressed. Often this work is done in the isolation of the project team and sustaining sponsors are not engaged until the project is near implementation.

Compliance with business changes is expected. Resistance and other key risks to the change are underestimated or ignored. Fear of change is prevalent among plant personnel. The culture is deep rooted and entrenched and resists change.

Business leaders are measured on the sustainability of the change projects in their areas. These results indicate a positive return on change efforts.

Human objectives for a project are identified, but are often not achieved or measured. In these cases plant leaders do not take ownership for poor implementation of sustained results. The project teams appear to have sole ownership for success or failure.

Human objectives and either project success measures are established at the onset of a project. These are communicated to all impacted and are monitored and measured throughout the project. Role maps are created that identify ownership and accountability for the change across the organization.

Human objectives for a project are identified, but are often not achieved or measured. In these cases plant leaders do not take ownership for poor implementation of sustained results. The project teams appear to have sole ownership for success or failure.

Change Leaders do not consider the human side of the change project. Project objectives do not include "human objectives",

Change projects are implemented on time with minimal disruption to the business. The organization is able to manage more change initiatives than the prior year and is increasing its capacity to handle an increasing volume, complexity and rate of change. The organization expects ongoing change and views it as the "norm". plant leaders are measured on the sustainability of the change projects in their areas. These results indicate a positive return on change efforts.

Organizational capacity for change is assessed. This assessment is a factor in setting organizational priorities. A formal change management process is followed. People in the organization adapt to the changes and are ready for more.

Changes project are prioritized. People have a clear understanding of these priorities, but it is still somewhat of a struggle to make progress on changes in the face of day to day responsibilities and "emergencies". Sustainability of the changes is a common issue.

Plant does not see the need for change. No plan exists to incorporate change management plans into the strategic plans. Change projects are started but see many disruptions and reprioritizations in the face of "emergencies"

The organization is overwhelmed by the volume, rate and complexity of changes required. Priorities are not clear and work items are often late or incomplete. People in the organization demonstrate signs of stress and dysfunction.


1.9 5

2 LEADERSHIP 2.1 INTERNAL VISION 5

2.2 5

2.3 POLICY MANAGEMENT 5

NON-MANUFACTURING SUPPORT

Complete alignment of non-manufacturing functions (administrative and engineering) to support the manufacturing function. There is continuous elimination of waste in all functional units of the organization. Continuous improvement is incorporated into the mission/vision for the plant. Proactive dialogue to eliminate problems before they occur is the norm.

Some alignment of non-manufacturing functions (administrative and engineering) to support the manufacturing function. There is continuous elimination of waste in many of the functional units of the organization. Many high-level department goals include waste elimination actions such as need to reduce transactional cycle time, improve responsiveness, and improve lead time. Continuous improvement is a major focus for many managers.

Some of the support organizations willingly get involved in applying Lean concepts. There is awareness of the potential benefits but the regular application of Lean tools is not in evidence. Some high-level department goals and some plant level goals include waste elimination actions such as need to reduce manufacturing cycle time, improve responsiveness and lead time. There is increased dialogue between manufacturing core process work group leaders, value stream managers and the support areas to resolve daily production problems.

A few of the support organizations show interest in applying Lean concepts. There is awareness of the potential benefits but not a concerted effort to get started. Some dialogue between manufacturing and the support areas to work together. Lean terminology starts to appear in communications and discussions.

Lean is viewed as a manufacturing focus and applicable to anything else. There is little to no awareness of Lean principles in non-manufacturing areas. Department goals and objectives do not include the identification and elimination of waste. "Us" vs "Them" is the prevailing culture.

Vision is developed as a prerequiplant to improvement planning by top management. Vision is clearly communicated to all. Gaps between current reality and vision are identified and serve as a basis for improvement planning. Leaders continue to evaluate and adjust vision and subsequent strategies as required.

Organization is energized by vision and how then see model ideal lines becoming the reality across the whole company.

Vision aligned to strategy and beginning to link to model ideal line projects.

Management beginning to develop a vision, but not aligned to strategy or goals.

Vision is not developed. The purpose of a vision in planning is not understood by leadership. Management and associates are often confused by the initiatives brought in by leadership and unable to link them to a particular vision or strategy.

STYLE AND CROSS FUNCTIONAL

COOPERATION

Cross-functional cooperation and total systems improvement participated in by all key leaders lead by the top executives of the company. Focus on product, safety, quality, delivery, cost & employee morale (PQCDSM ODCOTODD) & what delights the customer - short medium and long range.

Performance reviews done using cross functional measures and manager's collaboration between departments.

Systems improvement work is beginning, Cross functional measures and policy being developed.

Task force and event focused improvement.

Departmental functions are working separately - "as long as we do our work right, everything will be okay"

Policy is deployed top down/bottom up, linked to a clear vision. kaizen planning is integrated to business challenges and reflected in the company's president (Mike Roeder) business A3 plan. Action plans are effectively communicated at all levels and incorporate ongoing feedback regarding process and results of activities at all levels. Middle and top management provide visible support and involvement at workstations. Management aligns people, systems & resources to achieve the vision and in support of the core process.

Managers at different levels work together, playing "catch ball' and also evaluating the organization for its level of ability for each of the 10 systems of kaizen.

Goals and objectives of management are broken down to detail for each level of the organization.

Functional charts are made with details, enabling the elimination of the duplication and assuring important projects to not get dropped.

There is no clear management system. There are no clear plans to improve either the internal business or the internal processes in the company. Alignment of resources is not clear. People are not viewed as assets capable of self-managed work or providing essential knowledge. Management skills required for policy management and deployment not in place. Communication between levels is not effective.


2.4 TECHNICAL LEADERSHIP 5

2.5 5

2.6 DECISION MAKING

2.7

2.8

2.9 SINGLE POINT LESSONS

3 3.1

Organization uses leadership to promote and implement world-class practices. There is sustained personal commitment and involvement to drive Lean practices by all of the organization's managers. A plan for establishing and deploying the Lean principles is in place and executed.

Most leadership promotes and implements world-class practices in all business cycles. There is a high level of personal commitment and involvement to drive Lean practices by most of the organization's managers. A plan for establishing and deploying the Lean principle is in place, reviewed and supported by most plant leadership.

Plant leadership periodically demonstrates a commitment to making the plant a Lean environment. The plant leadership will separate the daily needs of the business from Lean principles in times of business pressures (e.g. end of month, increased demand).

Plant management makes a token effort towards commitment to Lean. Knowledge of Lean principles is limited a few key change agents. Plant management provides little vision of how lean will benefit the business.

Actions by plant management do not reflect commitment. Knowledge of Lean principles by plant personnel is limited. Plant does not see the need for change. No plan exists to incorporate Lean plans into the Strategic plans.

LEADERSHIP COMMUNICATIONS

Value Stream Managers and Work Group Leadership teams hold monthly detailed reviews of projects, team members do the presentations, status covered in every all-employee meeting, articles included in every periodical or written communication.

Value Stream Managers and work group leaders teams hold monthly detailed reviews of projects and consistent communication of status to all employees.

World class manufacturing status is consistently communicated to employees and some management review of WCM projects occurs.

World class manufacturing is mentioned in some employee communications but it is not consistent or frequent.

Value Stream Manager and work group leaders teams are not reviewing projects, World class manufacturing is rarely mentioned in all-employee meetings or written communications.

Decisions are top down/bottom up to achieve vision. Safety, Quality, Delivery and Cost targets are clear and based upon effective benchmarking processes and data collection. Customers, suppliers and associates are seen by leaders as key sources for SQDC target selling and routinely involved. Leaders follow key principles of Process and Results and Total Systems thinking in decision making. Quality in the process is always, before Cost and Delivery, and supported by Value Stream Managers and supervisors in production and support services. Internal measurements and targets are directly linked to financial measurements.

Decision making and target setting is spread throughout the company by use of projects whose goals are to satisfy the customer. Visual controls are used to manage the workplace through empowered small group teams.

Decision making and target setting begins in model project areas, aligning process output with customer requirements. Decisions are made to increase customer value.

Leaders begin to analyze the needs of the customer and the needs of the organization internally, focusing on making "Quality First" decisions.

Decisions are strictly top/down with little input from associates and middle management. Safety Quality, Delivery and Cost targets are arbitrarily set and not verified with customers (external or internal). Quality is not put first in the production process and production data are not effectively collected or used for improvement. Inconsistency of decisions is pervasive and reduces associate's confidence in leadership decisions.

COMPANY-WIDE COMMUNICATION

Communication strategy used in annual reports to show integration of business strategy.

Company newsletter (The Pellet) and details of workshops used to horizontally deploy improvement activity from one area or plant to another.

Company newsletter (The Pellet) and company briefings show kaizen plan and tell stories of what has been done in various workshops.

Improvement activity is discussed in plant or company-wide meetings.

No one in the company knows about any improvement activities.

VALUE STREAMS COMMUNICATIONS

Departmental communication dashboards/storyboards show attainment, current improvement activity and future planned improvement activity to S.Q.C.D.

Departmental communication dashboards/storyboards show attainment and improvement for value stream's safety quality, delivery and cost

Line communication dashboards/storyboard show attainment and improvement for each line's safety, quality, delivery and cost.

Improvements tracked on line communication dashboard/storyboard.

No communication of improvements.

Single point lessons are used to train all who work in that as standard work.

Line associates develop single point lessons to help learn the details of a process.

Improvement done and standards written by team members.

Improvement done and standards written by engineers.

Improvement is not done and standards are not followed.

PERFORMANCE MEASUREMENT

DATA INFORMATION COLLECTION

Improvement data is collected visible and integrated to the company improvement plan.

Improvement data is consistently collected by the Value Stream Managers

Improvement data is collected by area, but each area has its own scorecard.

Improvement data is only collected during workshops.

Improvement data is not collected. Trends or Pareto analysis of data is not done.


3.2 3

3.3 PERFORMANCE FOCUS 3

4 PEOPLE 4.1 SKILLS AND TRAINING 3

4.2 3

4.3 TIME MANAGEMENT 2

PERFORMANCE MEASUREABLES

Selected measures vertically integrated. All measures are displayed for all employees to see and reviewed for understanding at frequent intervals. Customer Satisfaction is the driving measure. The measures package is constantly reviewed and updated to ensure a Balanced Scorecard is in effect. Priorities are clear to all. Trends are positive. Leadership regularly reviews data with Line Technicians.

Partial attempt at a Balanced Scorecard is made with some vertical link to business measures. Employees are exposed to various measurements and see the link between their job and profits. Priorities become a little clearer.

The measures are related to the type of business and product produced. Customer Sat. has sizeable influence over performance decisions. Some visibility of the measures is gained through weekly/monthly measures but adherence to a “hot” few is common.

Still a large number of measures tracked but a few get the most attention. Some awareness of Customer Satisfaction and the profitability of the business.

Measurements are primarily efficiency based and used as a negative motivator. Employees do not see a connection between their job and the organization making money. Customer satisfaction is not important. Large number of measures in place causing conflict.

Employees are clearly aware of the need to meet changing customer demands and improve to succeed. Improvement activity is regular and vigorous. Needs and feedback are communicated well. Line Technicians understand and present performance to the leadership team.

Most employees understand and participate in ongoing improvement and have knowledge of customer demands. Focus on performance still needs to be built into training/compensation.

Employees are interested in improving and are given limited feedback and training. However, involvement is low key and not well organized. Some customer awareness is present.

Passive suggestion system is in place, but no real training or motivation supplied to employees. Little feedback or communication to employees on their involvement in

Only real concern is the paycheck. No interest in general business operation, improvements, or belief in change. Very little/no contact or interest with the customer.

Training deployed from training strategy to support core process. Managers aligned with training support responsibility. Natural & cross-functional teams form to meet organizational needs. All employees trained in core competency and job task skills and this information is posted in matrix form in the forming teams departments.

Training across job classifications and kaizen tools are learned & used by all associates.

All areas have multiple skill matrix dashboards & all associates have doubled their skill base within the last quarter.

Multiple skill cross training begins within process areas using standards and matrix skill boards.

Training is a low priority. Tools brought in without implementation strategy or alignment to business plan and organizational needs. Leaders do not participate in training or adequately support implementation. No one is interested in multiple skills development.

INVOLVEMENT IMPROVEMENT IDEAS AND

TEAMS

Associates understand how their equipment works and improve constantly. Performance evaluation tracks participation in kaizen at all levels, including management. People recognized and rewarded to encourage participation. 60 improvement ideas per person, per year.

Each area has teams in place and complete two projects per year per team. 24 improvement idea per person, per year.

Every major work area has improvement area. 24 improvement ideas per person, per year. Improvements done through teams and individuals.

Model improvement areas developed for associates to make improvement items. 6 improvement ideas per person, per year.

Improvement & problem solving are the responsibility of managers and technical experts (engineers, process technicians). Improvement is viewed negatively and a source of tension between worker & management. Associates see kaizen as a burden, adding work rather than eliminating it, reducing it, simplifying it or incorporating it.

Steady, easy predictable rhythm in all jobs. Standards clearly communicated and supervision for time management is not required.

Associated work entire shift with no punctuality problems.

Work group leaders and supervisors and associates work on time control issues. Breaks, lunches, and meetings, last as long as scheduled.

"Tool Box" meetings are held at the beginning of each start of cycle for each team and each shift.

Punctuality with respect to start, end, breaks, lunch meetings is not tracked or important.


4.4 4

4.5 IMPROVEMENT IDEAS 4

5 QUALITY 5.1 PRODUCT QUALITY 5

5.2 ASSURANCE SYSTEM

EMPOWERMENT AND CULTURE

People are competent, self managed, and empowered, driven by data and collaborate in solving problems rather than assigning blame. kaizen principles used as a barometer of self assessment. All levels and disciplines respect the need for diversity of their roles and skills and work together. People have confidence in the direction of leadership.

Management leads teams to do improvement projects. Each area has teams in place and complete two projects per year per team

Every work area has projects in place which are aligned with management goals and driven by management. Complete one project per year per team.

Begin training in principles and concepts of kaizen (foundation). Model areas working on specific improvement projects.

Leadership direction is ambiguous and unclear. Blaming is pervasive with little attempt to problem solve or prevent future issues. Favoritism and politics frame leadership and management decisions. Management believes associates need to be highly supervised. Poor information flow at all levels. kaizen principles and concepts are not known or understood.

II Improvement Idea) system is fully operational and is management closely. Ideas on how associates can improve Safety, Quality, Delivery, Cost, Productivity, Manufacturing Cycle Time, Overtime, Scrap, Defects, Outbound Freight, Inventory Accuracy, Customer Service, First Time Quality, Internal Quality, External Quality, On-time Delivery, Redundancies, New products, Current Products Breakdowns or increase morale average 30 a month.

Archaic 'suggestion box' in which employees suggest ideas that do touch on companies performance metrics.

No employee improvement ideas program exists.

Product quality is competitive (as shown by benchmarking data in the market) with few returns or complaints from users. Quality problems are detected, solved and prevented on the line, not at the end of the line. Line technicians are responsible for quality characteristics in the process and manage defect and error resolution (visual controls and mistake proofing) as part of their daily jobs. Customer input regarding quality cost and delivery requirements is continual and supported by effective systems of communication. Quality in the process is a shared understanding at all levels. Supplier to customer value chair is emphasized as essential to Quality First. Teams use appropriate problem solving tools (5 Whys/8D) to prevent quality problems.

Most production processes are left running and unmonitored during lunch and breaks. All office operations have a one page standard. Customer returns low measured in parts per million. Intense work with suppliers to improve product and process quality.

Process capability across the board is 1.3 CpK or higher. 10% of office operations have a one page standard.

Waste of rework, scrap and regrind equipment monitoring recognized. Shift to quality at the source associates inspect their own quality. Model areas have specific quality standards. Process capability studies done on major equipment.

Customer returns and complaints are common and measured in percentage and not PPM's. Inspection sorting are routinely performed, both in house and at the customer plant. Focus is on product rather than process quality at all levels. Quality is seen as a QA department and engineering responsibility. high variations in process resulting in high rework scrap and regrind. Outdated or non-documented standards exist. 7 visual controls are not in place. Processes are monitored one machine one person "because they could make a defect."

QA systems better than ISO-9000 requirements. Quality data (internal 7 external) effectively collected, reported, documented & used for improvement leads to ongoing kaizen of all standards.

Improvement of quality system seen in all areas of the plant per ISO-9000 requirements. Associates along with supervisors write standards.

Quality system ISO-9000 level in all areas of the plant and company. Alignment of management system to associate activity on shop floor.

Quality systems change is being modeled in pilot areas. ISO-9000 implementation has begun. Standards are associated assuring quality.

Quality system is based upon military standards and is inspection oriented. ISO-9000 is seen as a required quality system rather that a standards checklist common to all systems.


5.3 PREVENTION 1

5.4 DETECTION SYSTEMS 2

6 PROCESS FLOW 6.1 MUDA ELIMINATION 2

6.2 LAYOUT 2

6.3 LOAD SMOOTHING 2

Process variation due to machine, Line Technician/method, and material causes are routinely investigated and eliminated. Line Technicians follow standard work methods and consistently performs tasks correctly. Tools such as FMEA, SPC, defect data are widely used. Supplier quality programs are in place and managed. Error proofing methods are used at the source to drive zero defects. Deviation to standard is identified and managed. Value streams are operating at a 5+ sigma level.

Routine use of FMEA (Failure Mode Effects Analysis), Corrective Actions are generated for all problems including supplier related problems. Continuing Improvement as well as periodic audits of actions on Machine, Line Technician/Method assignable causes. Value Streams are operating at a 4 sigma level.

Routine use of SPC (Statistical Process Control). Some Corrective Actions are generated whenever a problem arises, Defects are repaired at the source and do not pass downstream. FMEA ( Failure Mode Effects Analysis) are developed for some products.

Managers and Line Technicians are aware of problems and use SPC sparingly to collect defect data periodically or other monitoring tools to signal when problems develop. Line Technicians are empowered to stop the line when problems arise.

No preventative quality tools are used. Significant amount of inspection is used. Process quality is not repeatable nor reliable. Line Technicians enter data into Infinity SPC software as perfunctory awareness.

Error-proofing devices are present on all applicable machines/processes. All understand value and use of error-proofing. Line technician assignable causes are minimal. Operation can be performed flawlessly without paying attention by any line technician or inspector packer.

Error-proofing devices are present on majority of machines and processes. Error proofing is used in fixing root problems. Most people understand value and use of error-proofing.

Error-proofing devices built into a number of machines but their further application is not part of continuous improvement process. Design is largely limited to engineers.

Value Stream Managers aware of problems and use SPC or other monitoring to signal when problems develop.

Not used at all. No effort made to error-proof process. Background level of production errors is accepted.

Self-managed teams produce according to customer demand utilizing one piece flow (JIT), pull systems for materials (Kanban), & self managed inventory. Travel distance, lead times, changeover times & batch sizes are minimal 8 continuously improved.

Overall ratio of value added to muda is 85:15. Autonomation in place on machines & lines begin to be load/load lines. Teams work on kaizen, making low cost automation and automated part sensors.

Muda being eliminated through team kaizen activity.

Everyone understands muda & each area makes up lists of muda.

Product manufactured in large batches, pushed through production regardless of customer demand. Muda in changeover times, travel distance, parts delivery, inventory are excessive & uncontrolled. No one seems to understand muda.

Equipment and processes are close enough together for hand transport and job sharing. Equipment/processes are arranged in small, product specific, flexible cells. Work “loops” are easily re-balanced. Facilities are flexible to change, Line Technician workflow are uninterrupted. Equipment and tools are not shared.

Transportation delay is very minimal, and Line Technicians are close enough together to share some jobs. Cell concept is present. Increased amount of resource dedication based on product families (similar processing needs).

Most processes are placed in close proximity, but long-distance transportation delay still occurs. A few problems occur when products with different processing needs are produced on the same line. Some use of cells formation are used.

Limited dedication of resources. Processes are placed apart leading to sporadic batch processing and a moderate amount of transportation delay.

Equipment and sequential processes are placed far apart from each other, leading to batch processing and a lot of transportation delay. Products change direction multiple times during the process. Double handling of the product is prevalent in all movements. Typical flow diagram looks like “Spaghetti” and cannot be easily followed. High number of shared resources causes “traffic jams”

Production of priority products as well as “spot” demand occurs daily. High degree of visibility to customer demand. Production is synchronized among processes and based on customer selling speed time analysis. System rules for flexibility and order processing are defined and managed by the line. Orders are managed to adhere to lead time.

Production of priority products takes place daily. Production is synchronized among processes and is based on customer selling speed with little disruption to the process. Some build-up inventory due to changing mix.

Production of priority products takes place at least once a week and is fairly well synchronized among processes. Fair amount of visibility to demand mix. Schedule is fairly stable. System has only one setting based on average customer demand.

Production of priority products takes place at least once a week. Production pace differs by process and is controlled heavily by manufacturing problems.

Production of priority products takes place at least twice a month and is scheduled. Production pace differs by process and is controlled heavily by manufacturing problems. Schedule is constantly reprioritized by a planner. (no offence Debbie)


6.4 INVENTORY STORAGE 4

6.5 CONTINUOUS FLOW 5

6.6 PULL SYSTEMS 1

6.7 VALUE ADDED WORK 1

7 7.1 5S 1

All materials, WIP, and equipment have designated, well labeled storage close to point of use. Quantity figures are always accurate. All employees understand and follow procedures. Parts arrive when needed for production. Supply Chain Management has reached 80 percent of original plans goals.

Supply Chain Management has performed an 80/20 analysis on those parts and suppliers that are causing or could cause significant variations in the production process and has a plan in place to reduce lead-times, quality issues, or lot size issues. Storage continues to be moved to line side stocking where applicable.

Storage areas are specifically designated and may be relatively close to the point of use, and employees generally comply with procedures. Some FIFO mechanisms exist. Line side stocking replenishment system is being utilized.

Storage areas have begun utilizing visual controls and are beginning to establish a replenishment system for line side stocking with the involvement of Supply Chain Management.

Storage is disorganized and has no clear visual controls on location or volume. Items often located in unmarked locations. Work stations are frequently waiting for material to be delivered from a central location warehouse.

True single piece flow (lot size=1) occurs in virtually all areas of the line(s). Employees understand the value of this and constantly work to improve efficiency of setups/changeovers and reduce variability. Production system is defined by linked cells supporting a product streams. Deviations to single piece flow are understood and standardized. Setup time is equal or less than customer safety stock level.

Production basically runs in a continuous flow, but small inventory buffers exist between processes to insulate each individual process from variability in others and/or high changeover times.

Parts of the lines are run on continuous flow basis but batch processing still occurs in some areas. WIP levels are moderately low.

Batching is used heavily, but batch sizes are moderate and material moves through the system in the proper sequence. Batch sizes have been reduced to half of daily demand.

Finished goods move through the production line in large batches often backing up several hours. Batch sizes on average are equivalent to daily demand. Overall WIP inventory is large and material gets out of sequence.

Production is driven completely by pull control. Daily output demands are given to final assembly only + drawn back up the line using Kanban cards or similar device. WIP levels are low + strictly limited, system is highly disciplined. All material flow (raw and WIP) through the production system is driven by consumption and is independent of forecast. Materials are ordered and linked via a Pull system directly to suppliers.

Kanban (or similar) systems are in place either in multiple areas to support specific Value or product streams. Replenishment to the lines, Pull between separated work areas, Pull from supermarkets for CTO are readily identifiable and evident. Minimal reliance on buffers to prevent line disruptions. Discipline in pull control by Line Technicians is good. Some supplier pull systems are in place for key materials.

Partial Kanban (or similar) system is in place either in very limited area of line or in materials replenishment at work stations but relies on high buffer sizes to prevent line disruptions. Management is aware of value of pull control. Discipline in pull control may be slightly imperfect.

Production output at individual stations may be somewhat limited by backup of WIP downstream. A “cap-limit” or maximum WIP level is in place. Communication between stations is poor.

Production flow is completely MRP based with no in-line control on operations or production pace. Material enters and is pushed downstream on forecast only.

Percent of value-added work is very high. Work is streamlined down to a hand motion level. Improvement teams work extensively to improve productivity and make jobs better and easier. VA-NVA ratio is > 20%. Elimination of Non-value added time is a priority.

Waiting time is minimal, and most work is value-added. Cross-functional improvement teams work regularly to increase the productivity of the work areas.

A moderate amount of work that does not add value is found in redundant activity such as multiple inspections, and changeover. Line Technicians are more involved in developing new work methods. VA-NVA ratio is > 10%

Non-value-added activity consumes the majority of time, but efforts are made to make work more efficient and eliminate steps. Line Technician involvement is limited.

A great deal of time spent waiting on machines, parts, people. Significant amount of time is spent walking, inspecting, resolving work stoppages, changeover, moving material, repair. VA-NVA ratio is <5%

WORKPLACE ORGANIZATION

Causes of dirt/dust/debris/process excess and disorder eliminated. Workplace stays clean without much cleaning. Visual controls allow materials and information to be found at a glance. 5S activity is used by all to maintain order and visual controls in the work area.

Clarity of organization and visual management in all sections. Tools organized for each work station. Abnormalities perceived right away.

Clean equipment, clearly marked paths, corners of work areas and areas behind big equipment cleared of dirt/dust/debris/process excess. Proper locations clearly marked. Closets and drawers still disorganized.

Unneeded items gone, area clean. Work in Progress organized neatly. Proper locations not clearly marked.

Scrap, paper and tools scattered in offices and plant. Workplace is dirty, disorganized, disorderly and undisciplined. Spend much time searching for materials tools, information and standards. No one has had 5S training. No in house keeping standard developed or adhered to.


7.2 VISUAL MANAGEMENT 1

7.3 LAYOUT FOR KAIZEN

7.4 3

7.5 PRODUCTION SCHEDULING 2

8 EQUIPMENT 8.1 5

All can visually check status and performance in all Value Streams of the plant. Problems are quickly noted and corrective actions are taken immediately. Information is maintained by employees. System status is visible and obvious to all shifts. Teams use storyboard to analysis misses of flow to corrective actions. Dashboards are used to track performance of Safety, Quality, Delivery and Cost targets.

All Employees are able to understand performance, goals, and status of the process from the posted information. Information is thoughtfully tailored to individual areas. Storyboards installed on all lines and their use to being adopted by non-manufacturing uses by other departments in the plant. 80% of associates have been trained in storyboard theory and practice and fill them out correctly.

Visual communication tools and displays are used, but the information is not very complete or as up to date as it could be. Performance and status are fairly clear to most people. Storyboards have been installed to 75% of the line in both Forming and OMV.

A few visual communication tools are used. It is still very difficult to see performance, goals, and current status. A few storyboards have been installed. A few people have been trained in storyboard theory, but do not practice its use. A few dashboards have been installed to communicate performance, but are not maintained.

No visual displays showing performance, goals, or current status exist. Visual tools are not used for communication process. No storyboards have been installed and no one has been trained in their use. No dashboards have been installed to communicate performance.

Full multiple process operations linked together to provide true one piece flow in the plant. Kanban is fully implemented. All departmental walls have been removed.

One piece flow process layouts are linked, reducing need for in process inventory stores. Information flow from support systems (marketing, sales purchasing) is linked and aligned.

Line layouts geared for single piece flow. Small lot size and optimal motion through inter-process stores with min/max visual management. Kanban used with supplies and warehouse stores.

Job shop layout, some small lot production and many conveyers in use. Some successful use of chutes in place. Associates involved in kaizen activity.

Job shop production. Large lots of material accumulate near process equipment. Each process moves at its own pace. Inventory everywhere.

INVENTORY CONTROL AND TOOL CHANGEOVER

Inventory has been reduced by 80% from kaizen starting point. Changeovers are all completed within allotted time. (10 hours for tool change, 6 hours for color change, 2 hours for boxes) single digit and done within the cycle time of the work to be done. Material handlers make sure lines never run out of material. Lead times dramatically reduced.

At least one line in each area (OMV and Forming) has maintained an average of 10 hours for tool changeover. WIP down 75% from kaizen starting point.

Inventory down 50% from kaizen starting point. 10% of all changeovers are at or below allotted times. All associates trained in quick changeover techniques such as SMED. Changeover exhibition held for training & kaizen purposes.

Model ideal lines areas beginning to do quick changeover studies, but still not the normal way of doing. Inventory reduction forcing some problem solving.

WIP is a necessary evil. Rushing orders, pushing product through the system is common. Changeover done 1-2 times per month regardless of customer requirements and can take well over 10 hours before it is signed off We are a "victim of our customer's constantly changing needs business attitude.

100% delivery on time. Production schedules done daily with leveled production. Overall flow is based on planning rate, cycle time or standard flow. Even rush orders not a problem. Departments are very agile to customers' change in demand.

All deliveries on time, production scheduled daily, but there are some areas where "push production" is going on.

Some deliveries late and customer has to be placated. Production control done with computer on a weekly basis. Process flow charts track all products and work orders.

Production control boards present on each line and lines running close to flow, cycle time or standard flow. Still busier at the end of the month. Production schedules done manually twice a month.

Production scheduling done once per month with many interruptions from customers changing their minds, "a nuisance". Deliveries are rarely on time and "rush orders" are the norm.

AUTONOMOUS MAINTENANCE

Entire organization has responsibility for maintenance at all levels in an integrated approach to reduce equipment downtime. Roles are clarified to vision and all are trained in areas of responsibility, including engineers and maintenance. Line Technicians and natural work teams clean, inspect, lubricate, bolt and repair their own equipment. OEE >85% across the whole factory.

OEE is improved so that over 50% of the plant has achieved 85% OEE. Associates efficient in the routine maintenance of their own equipment.

OEE is improved. Downtime 50% of original. Associates and skilled labor jobs are changing. Associates are involved in the cleaning, inspecting, bolting and lubrication of their own equipment.

OEE is gathered in pilot areas as part of autonomous maintenance training.

The use of Overall Equipment Effectiveness (OEE) is not understood or utilized in an ongoing manner. Line Technicians are not empowered or trained to do autonomous maintenance. "You run; I fix" division of labor. There is no in-process tracking of problems by Line Technicians on the line. Maintenance is seen as the responsibility of the maintenance department. Roles are unclear and a source adversarial tension.


8.2 LOSSES 2

8.3 RELIABILITY 2

8.4 PLANNED MAINTENANCE 1

8.5 PREDICTIVE MAINTENANCE 1

8.6 QUALITY 3

Constantly reducing the losses in energy, motion, and efficiency of equipment, facilities, and materials. Recycling materials in best known way to protect environment. 1SO 14001 fully implemented. Loss reduction linked to cost reduction effort. Elimination of contamination maintained and all standards are visible. Single point lessons are routinely used updated. Safety standards (JSAs) are clear and followed. Equipment is compact and mobile.

Plant wide equipment improvement process in place and new technology used to recycle materials and conserve energy.

Losses are dramatically reduced with speed by doing work-shops throughout the plant. Factory wide conservation process begins.

Begin to understand the various loses as learned through equipment improvement workshops in pilot areas.

No one concerned about various losses in equipment, materials or energy. Conservation is not considered important. ISO 14001 is not known as environmental standard that is kept by the ISO.

All equipment upgraded to improve reliability and information passed on to new equipment purchasing group.

Equipment upgraded in areas where constant wear and tear tend to reduce reliability.

Pilot projects are conducted to improve equipment reliability (MTTR and MTBF).

Reliability studies being done to determine the frequency of planned maintenance required.

Reliability of equipment not understood thus constantly breaking down.

Equipment breakdowns are low and immediately seen, analyzed documented and re-standardized when they occur. Maintenance systems are efficient and support the needs of production. Mean Time To Repair (MTTR) and Mean Time Between Failures (MTBF) are routinely monitored. History and reliability data are current.

Condition monitoring and predictive maintenance begin. Routine inspection and PM schedules are established for all motorized equipment and 100% completed on schedule Maintenance activities include reduction of Mean Time To Repair and Improvement of Mean Time Between Failures.

Individual equipment histories are complied. Full, clear data on equipment kaizen and modifications recorded regularly. All major equipment included in PM program. Planned maintenance is done on schedule 85% of the time.

A Computerized Maintenance System tracks and manages activities. Maintenance personnel coordinate activities with autonomous maintenance teams. Less than 50% of planned maintenance is done on schedule.

Breakdowns are high and fire fighting is the pattern. Maintenance systems are inefficient and engineer/maintenance roles are mixed with no reasonability by Line Technicians. Mean Time To Repair is long (days) and Mean Time Between Failures is not collected or used efficiently. Storyboards are not used for data collection and analysis.

Predictive maintenance and life cycle costing are routine for all machines. New and current equipment is modified/designed for ease of maintenance. Techniques such as PM Analysis are well known and utilized.

Plant maintenance and engineering staff involved in the design stages for new equipment and purchase.

Plant engineer and maintenance. staff customizing old equipment or newly purchased equipment to optimize utilization and reduced costs with input from associated. Includes improved jigs, fixtures and autorotation features.

Critical equipment selected for analysis and overhaul. kaizen efforts for new equipment coordinated with autonomous maintenance teams.

Predictive maintenance is not done. Equipment hard to maintain and not designed with maintenance as a priority. Equipment is brought in based upon purchased cost without much concern for the life cycle costs nor ease of maintenance. No involvement from operations.

Autonomation stops the machine when there are defects and abnormalities. Quality problems are immediately noticeable with use of visual controls and mistake proofing and are immediately addressed by Line Technicians and technical experts as needed. Quality in the process is transparent and variation is controlled and continually reduced based on continuous feedback from each station and subsequent operations. Emphasis is on prevention of errors, not inspection of defects.

Process equipment and equipment supply problems are prevented upstream in the design arena with input from operator associates maintenance and production engineering. Defects are reduced to 90% of the original level when the kaizen activity started.

Defects are reduced 50% from the original level. Mistake proofing is on all equipment. Quality issues of process and supply drastically reduced.

Pilot projects in place to use Process Failure Mode Effect Analysis (PFMEA) to determine opportunities for mistake proofing and autonomation.

Equipment passes defects on without stopping. Most defects are found downstream from where they were created through inspection procedures. Quality is not immediate at the source nor a system of 100% inspection or SPC is used. Mistake proofing, if it exists at all, primarily attempts to catch defects after they are made, not through prevention. Visual controls are minimal or ineffective and variation in machine capability is high.


8.7 CHANGEOVER AND SETUP 3

9 SYSTEMS 9.1 4

9.2 INFORMATION SYSTEMS

9.3 STANDARDIZATION 4

Inventory has been reduced by 80% from kaizen starting point. Changeovers are all completed within allotted time. (10 hours for tool change, 6 hours for color change, 2 hours for boxes) single digit and done within the cycle time of the work to be done. Material handlers make sure lines never run out of material. Lead times dramatically reduced.

Setup on machines is within 30+/- minutes of schedule. Repeatability of the process is very noticeable. Material availability is improved to re-supply complete within 30+/- minutes of schedule. Setup times in assembly areas are short predictable and repeatable. On-going improvements are visible.

Setup reduction teams exist on key machines and times are improving, but progress still needs to be made. Set-up time has been reduced by 75% as defined by “Last good piece with old tools to first good piece with new tools (includes 1st piece approval and sign off)”. Some beginning focus on the material supply processes.

People are aware of the need and value in lowering setup times. Improvement activities are selective, not formally built into the system. Setup times are fairly high (10 plus hours) and no investigation for setup over schedule is conducted.

Setup is done once or twice per month. Little to no awareness of need for frequent setups. Setup may take half a day or more. No consistent measurement of Set-up time. Material availability is ignored.

CROSS-FUNCTIONAL TEAMS

All support departments (e.g. HR, Engineering, QC, Materials, Marketing, Sales, MIS, etc.) are aligned and integrated to support the core process (production of service) based upon a clear understanding of Total Systems thinking and the kaizen work system mode. Systems are simple, cross-functionally developed, and implemented with continual review and improvement cycles. Systems are flexible enough to change based upon external and internal customer demand.

Measurements for support system departments are aligned with the core process and the support departments are re-engineering all their systems.

All departments are piloting the re-engineering of the support systems to improve their quality, lead time and integration with the core process.

Educational process begins and pilot projects in place to improve non-manufacturing systems quality, lead time and integration with the core process.

Functional staff departments do not view themselves as a support to the core process and frequently make decisions to enhance their departmental strengths. These decisions are either not effective or harmful to the core process and/or other support services in the system. Reaction, fire fighting, defensiveness, job protection negative competition between departmental 'silos' and poor communication are the indicators.

Computer integrated Manufacturing (CIM) (SAP) completely implemented. Systems information group aligned to real time kaizen activities on shop floor. Systems data feeds policy management system.

CIM is tuned to factory needs and point of production. Computer use is fully implemented supplementing visual controls in real time.

Office automation and factory automation developed. Point of production system is in place along with visual control boards at the Gemba. Managers "go to gamba" to get data.

Required data tracked and visually managed on the shop floor to solve problems in real time. Limited use of factory or office automation.

The "old manual way is best" mentality. Most data is hidden and fragmented, plus not used for real time process problem solutions.

Gemba workers help design standards that are well defined and built into the workstation, displaying all necessary data for decision making at point of use information centers using visual controls and mistake proofing as appropriate. Standards support flexibility and rapid change as required to meet customer demand. process variability is low, defects eliminated in the process at the source. Cycle time are balanced. Line technicians, inspector packers are empowered with line start/stop authority and to upgrade or re-standardize on the line for improvements. Process variability is low and adherence to standards is high.

All process documentation has included ISO steps as well as muda reduction steps, improving original ISO-9000 process documentation.

ISO-9000 documentation completed, plant certified. Much of the plant has undergone Gemba kaizen workshop activity, resulting in new "standard work".

Some pilot activity in place for improvement and standards are written by teams. Also beginning to develop ISO-9000 documentation.

Standards are poorly defined arbitrary, and confusing - often not documented. Standards written only by engineers with minimal or no line technician or inspector packer involvement. Machine & Line Technician cycles do not support customer demand and changes in demand are met only with great cost & effort. Safety, Quality, Delivery and Productivity data are not clearly evident at the work station. Variation is high and adherence to standards is low. Work area is not orderly.


9.4 STANDARD WORK

10 10.1 SUPPLIER RELATIONSHIP

10.2 SUPPLY MANAGEMENT

10.3 PRODUCTS

All work areas are covered in integrated standard work sheets. Sheets are updated regularly, and are the driver for continuous improvement of processes and procedures by the Line Technicians. Line Technicians create/maintain standard work methods and documents. Line Technicians adhere to standards and audit for compliance in all teams, on all shifts.

Majority of stations are covered in integrated Standard Work Sheets. Sheets are updated regularly, and are used regularly as baselines for continuous improvement of processes and procedures. Line Technicians create/maintain Standard work methods and documents. Line Technicians adhere to standards on all shifts.

Fairly complete Standard Work Sheets are developed and basically followed, and located at line side. However these are not frequently used as baselines for continuous improvement activities.

Basic aspects of Standardized Work Procedures are developed but not always updated well. Taken only as a “general guideline” for the stations to follow. Concepts good, but slips occur in application. Some Line Technician input into the methods.

Work procedure charts exist in basic form but are not rigidly followed. No consideration given to areas such as WIP levels, machine time, or critical safety and quality items.

SUPPLY LINKS AND BUSINESS DEVELOPMENT

Efforts continually aim at integrating all suppliers in the value chain. The organization works collaboratively with suppliers to improve Quality, Cost and Delivery targets. Self-billing and open book costing is possible. Suppliers are qualified and certified based upon their on-time reliability, quality of product or service, attention to cost management, improvement and effective (honest, open, continuous) communications.

Long term suppliers are certified and a conscious effort is going on with them and the rest of the value chain to reduce overall Cost, improve Quality and Delivery (see 9.3)

Supply base is reduced to a significant percentage of the starting point (50% or less). The criteria for keeping a supplier is qualification, excellent performance against rating system and progress toward certification.

Qualification of suppliers is beginning through examination of supply rating system and actual Quality, Cost, and Delivery performance.

The organization does not attempt to integrate suppliers into the value chain, dealing with them separately. Suppliers are selected primarily by price of because engineering brought a supplier in with a new product. The relationship is closed, untrusting and blame oriented. Customer demands are made without collaboration or input from supplier.

Parts and materials spend a lot of time in transit. System counts do not match available parts. Large equipment and process downtime due to missing parts. Several parts areas with no visible customer separation.

Material supply strategy is consistent with current Operating Model needs (Line-side stock vs replenishment). Appropriate packaging methods/media are in place. Minimal material returned to the stockroom. Suppliers ensure good parts are available at the cell. Parts are clearly labeled and part counts match system numbers. Material handlers are measured on cell uptime. Material is delivered ready for use. Material status is visible at all times (on order, when due, what is late, lead time problem parts). Supply Chain has resolved 80% of Major issues identified in the recovery plan. A process is in place to identify and address supply issues on an on-going basis.

Upstream involvement of production Gemba, suppliers, and customers is core to development process. Core to this is to improve ability to identify and meet requirements, reduce lead times and improve quality with maximum customers and Gemba input. Lead time 35% of original.

Lead time to introduce products us reduced to less than 50% of original measured process. All are launched on schedule. Customers are delighted with new product quality and selling prices.

Lead time to introduce products is reduced to 70% of original and most of the new products are launched ahead of projected schedule.

Product development begins to pilot projects which involve customer delight input, concurrent engineering. Design Failure Mode and Effects Analysis (DFMEA) and value analysis techniques to improve lead time and quality of product and process.

Product development process is functionally controlled and does not utilize customer nor production input effectively. Lead-time to develop new products is long or unknown and more products come to market late and do not meet customer expectations. New processes for new products have high variation and are difficult to maintain.


10.4 NEW PRODUCTS

10.5 NEW TECHNOLOGIES

10.6 S.Q.D.C KAIZEN

10.7 BUSINESS

New products developed with shared involvement upstream. Supplier engineers , Line Technicians, are involved with internal sales, engineers and the customer. Seed technology and black box technology are not used leading to reduce product development lead time and more viable products. All are aware of the mutual benefits in new business that can be driven by the collaborative process.

Co-design of new products is a way of life. Supplier input is highly valued for product and process design.

Pilot projects in place with some suppliers doing co-design along the whole value chain.

Suppliers given the mandate to manage their supply base and to be collaboratively involved in designing new products.

Suppliers not involved in new product development. They produce according to specifications or prints sent to them.

New technology and documented workplace improvements of processes upstream provide and increase pull for new business. Linkage between external researchers, universities, and internal engineering developments as well as production floor improvements continues to provide engineers with new product and process ideas. New products have improved quality over existing products and are developed using Quality Function Deployment for enhanced customer linkage. Value analysis and simultaneous engineering used to ensure upstream management of the process.

One step ahead of the industry average. Beginning to see results because customers want product and service from technologically advanced supplier.

Keeping pace with average technology in industry, in order to compete locally as well as internationally.

Recognition by plant and company that they are slow to adopt new technology, and that competition is taking market share due to this problem.

Research and linkage to resources for new technology are rare and sales are from existing products only. Quality, Delivery and Cost of new products is not improved with increasingly high costs and sales defecting to competition. Content with status quo.

Suppliers and customer set SQDC targets together, emphasizing quality, minimal inventory quantity, and cost to schedule requirements throughout the supply chain and effective process to integrate customer supplier kaizen targets & activities is developed.

Supplier involved with second and third tier suppliers, helping them change their culture and systems to ones that are constantly improving Safety Quality, Delivery and Cost.

Suppliers begin to incorporate kaizen type activities; constantly improving processes. Each supplier plant has many improvement projects.

Pilot projects in place to do Gemba kaizen work with suppliers at "our plant" to improve SQDC.

Mandatory price reductions primarily drive unregulated SQDC improvements. Supplier rating system is complex and political.

Marketing and sales continuously improve their own processes to eliminate waste and increase the reliability of methods for bringing in new market riches and increasing sales. They also have a clear understanding of their support to the core process, including bringing in new business to utilize capacity which result from production improvements.

Link new business, new markets with overall company strategy for design and manufacturing. Sales and profits increased substantially.

Pilot marketing processes which are more efficient. Bring in more sales through improved utilization of existing resources.

Begin to recognize that excess capacity and improved resource management are linked and can lead to improved sales and profits.

Marketing and sales are not involved in improving their own processes, nor do they see a link in their development of better processes to bring in new markets. Links to support of core process resource utilization are unclear. Sales, Marketing and Engineering departments do not see themselves as constraint.

ORGANIZATIONAL STRUCTUREMANAGEMENT COMMITMENTIMPROVEMENT PROCESSTEAM INVOLVEMENTIN-HOUSE SUPPORT OF FORMING TEAMS

EDUCATION AND UNDERSTANDINGPLANNING FOR CHANGE

ACCOUNTABILITY

RESILIENCE

NON-MANUFACTURING SUPPORT

INTERNAL VISION

STYLE AND CROSS FUNCTIONAL COOPERATION

POLICY MANAGEMENT

TECHNICAL LEADERSHIP

LEADERSHIP COMMUNICATIONS

DECISION MAKING

COMPANY-WIDE COMMUNICATION

VALUE STREAMS COMMUNICATIONS

SINGLE POINT LESSONS

DATA INFORMATION COLLECTION

PERFORMANCE MEASUREABLES

PERFORMANCE FOCUS

SKILLS AND TRAINING

INVOLVEMENT IMPROVEMENT IDEAS AND TEAMSTIME MANAGEMENT

EMPOWERMENT AND CULTUREIMPROVEMENT IDEAS

PRODUCT QUALITYASSURANCE SYSTEMPREVENTIONDETECTION SYSTEMSMUDA ELIMINATIONLAYOUT LOAD SMOOTHING

INVENTORY STORAGECONTINUOUS FLOWPULL SYSTEMS

VALUE ADDED WORK5S

VISUAL MANAGEMENT

LAYOUT FOR KAIZEN

INVENTORY CONTROL AND TOOL CHANGEOVER

PRODUCTION SCHEDULING

AUTONOMOUS MAINTENANCE

LOSSES

RELIABILITY

PLANNED MAINTENANCE

PREDICTIVE MAINTENANCE

QUALITY

CHANGEOVER AND SETUP

CROSS-FUNCTIONAL TEAMS

INFORMATION SYSTEMS

STANDARDIZATION

STANDARD WORK

SUPPLIER RELATIONSHIPSUPPLY MANAGEMENT

PRODUCTSNEW PRODUCTS

NEW TECHNOLOGIESS.Q.D.C KAIZENBUSINESS

0

5

10 LEAN SYSTEMS DIAGNOSIS RADAR CHART1. ORGANIZATION FOR KAIZEN

2. LEADERSHIP

3. PERFORAMNACE MEASUREMENT

4. PEOPLE

5. QUALITY

6. PROCESS FLOW

7. WORKPLACE ORGANIZATION

8. EQUIPMENT

9. SYSTEMS

10. SUPPLY LINKS AND BUSINESS DEVELOPMENT