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Junwoo Park
Visual Management


       Establish and display work priorities



       Visually display daily process performance


       Support communication within a work area or
       between management and staff

       Provide feedback to team members, supervisors and
       managers and make it possible for all employees to
       contribute to continuous improvement
Visual Management


              Management innovation




    Process       People              Product




                  VALUE
¥108.6 billion


- 703 stores in Japan
- 1000 stores in China


 30,000 employees
Quality
Service

          DNA
Space Management

Uniqlo’s 4

   1   No personal table



   2   No chairs in meeting rooms



   3   No personal conversation during work time



   4   No lights after 7 p.m.
Characteristics of Six Sigma


               Quality
                                    Six Sigma

                                    1)  Getting fast can
                                        actually improve quality
                                    2)  Improving quality can
    Quality   Six Sigma   Quality
                                        actually make you
                                        faster
                                    3)  Reducing complexity
                                        improves speed and
                                        quality
                Speed
Customer trends : 2S+4G



                   Smart + Slow life style

                   Global Digital

                   Grey

                   Green

                   Gender
Visual control tools and methods
                               To set up poles next to
                               inventory stacks and
                               mark down the maximum
                               allowable stock

         Signboard             Red line
         Strategy              demarcators




   Red Tag                 White line
   strategy                demarcators
                          To organize workshops in
                          an orderly condition,
                          marking out pathways
                          and in- process storage
                          sites
Visual control tools and methods


                     Standard
                     operation
           Kanban    charts        Error
                                   prevention



   Andon       Production   Defective
               management   item
               boards       displays
Kaizen




         Kaizen
Statistical approach


                          40 hours
           10
                                     1 year
       Minutes/day



                       X all employee= ???
1 week salary
Marketing Strategy Program

                                  Information




             Implementation       Marketing       Insight
             Feedback             Strategy




                                      Idea




Mobilization Environment   Customer    내부역량     Strategic   Strategy   Monitoring
             Analysis      Analysis             Fit         Deployment
Method Management




   1   Business core management



   2   Business structure adjustment



   3   Timing & Risk Management
Method Management
Starbucks’ Brand Meaning



                      Samsung


          Remove


          Reduce

          Rearrange
Acquaintance Management




    1   Global trend



    2   Benchmarking



    3   Communication



    4   Ex. IBM (Innovation Jam, P&G (Virus Marketing))
Result Management




    1   How much you create value, not how much you work



    2   Infinite challenge



    3   Compensation and Incentive
Time Management




   1    Focus on highly efficient work



   2    Work & Life Balance



   3    Reduced-Load Work
Specific steps for accurate project

  Select Issue               Business system / Process            Sustain
                                                                  The best


                                                 Optimize
  Define




  New
                  Identify           Design        Optimization   Verify
  Process
                                                   (if needed)




  Measure        Analyze           Redesign          Improve          Control
                                    Redesign




                                                     Enough
                                                     capability
TPM
                                                  All-out autonomous
                                                  management


                                           Standardization



                                 Autonomous inspection


                            General inspection


                      Preparation of tentative
                      ‘Jishu-hozen’ standards

 Countermeasures for the causes of forced
 deterioration and improving hard to access
 areas

 Initial clean-up



    Examples of steps for evolving ‘ Jishu-Hozen’
Classification of Maintenance Activities



                                                As for
                                                measures                1     Normal Operation
Maintain activities       1                     to maintain

                                                                              Preventive
                              Maintenance                           2
Kaizen activities     2       measures                                        maintenance




                                            As for Kaizen
                                            activity            1
                                                                            Corrective
Incorporated into 3 elements                measures                        maintenance

  Activities to prevent deterioration                                   Maintenance
  Activities to measure deterioration                       2
                                                                        Prevention
  Activities to restore deterioration
TPM- What do Skills Mean?


               Persons who can        Who can act
  Phenomenon
                precisely judge        reflexively
     found
               the phenomenon


 5 senses      Brain                 The Limbs




  Perception    Judgment              Acton

                            Information
                            Accumulation
                            Education
                            Experience
TPM – Concept of Life Cycle cost


   Cost of Purchases
   (R&D, Production)



      Training cost
                                       Service cost
                                       & technical
                                       information
                                           cost
    Logistical
   Support cost        Transport and
                       Handing cost



                                           Facility and
       Replacement and                     equipment
          scrap cost                          cost
Failure factors of Kaizen



               Systems without passion




                Passion without Systmes
Characteristics of bankrupt companies


      1       Arrogant-overconfidence of managers and executives



          2        Lack of Employee education, inadequate education



               3     Lack of business goals and planning



          4        Lack knowledge of new products



      5       Delay of technology development
Characteristics of bankrupt companies


      6       Workers discord, problems



                  Confusion, mix business with personal affairs,
          7
                  Lack of business philosophy



              8     Lack of strength of decision making & power of execution



          9       Lack of computation management and study



     10       Stubbornness, lack of self examination
Poor Management




Errors&
Wastes         Kaizen
Definition of TPM
                               Operator’s skills   Operation standards

Instruction of operation          Knowledge            Sequence           Output
                                  Skill                Method
      Products
                                                                          Products
      Quantity
      Delivery                                                            Service
                                                                          Information
      Input
    Material                              Process                        Utilities
    Energy
    Information                                                          Electricity
                                                                         Gas
        Environment                                                      Steam
                           Support material & Energy     Equipment       Compressed air
        Cleanliness                                                      Industrial water
        Brightness                                      Die
        Vibrations               Lubricant              Tools & Jigs
        Noise                    Cutting oil            Cutting blades
        Temperature              Working oil            Measuring
        Humidity                 Others                 instruments
VOR

        VOS

  VOM



VOC           Strategy              Business
              Department            Strategy




                                               improvement)
                                               (Continuous
                                               Kaizen
 VOE
                       Communication
        VOT
                  Risk Management

                  Cooperation Management

                  Leadership Management
VOC Analysis


    1       Necessity for grasping current & potential customers needs



        2     Necessity for more customer’s information



             3   Differentiation from other competitors



        Understanding from VOC
        -  Customer’s business
        -  Core factors of customers
        -  Knowing things to do/ Kaizen for right process
Statistical approach



                        100%
         100%                     100%




                       13 departments

   100%                   99%
                           .99^13=.88
                             88%
Speed



Simple                System

            New
             5S

  Service           Smile
Genba
(現場,                            Kaizen
actual place)
                      3GEN



      Genbutsu               Genjitsu
      (現物,                   (    ,
      actual thing)            Actual facts
Product                            Genba
                                design                        su
                                                        Genbut
        Productio
                    n techno
                               logy                            Genjitsu
Manufac
       turing te
                 c  hnology

                                              Kaizen
                                                                Capi
                                                                         tal eq
                                                                                  uipm
                                                                                      ent m
                                                                                               anag
                                                              Prod                                    eme
                          ntrol                                       uct fl                                nt
                  tion co                                                      ow c
           Produc                                                                  ontro
                                                                                           l
                                                       Stan
                                si n g                        dard
                        Purcha          ent
                                                                     izatio
                                                                              n
                                   nagem
                           on ma
                Inf ormati
Purpose of Inspection

      Total cost of revenue improvement
                      in risk management
        Correction of significant
                       risk issues
            Presentation of
 management’s determination
        Provide objective                           Muri(
              information
                                           Kaizen   Muda(
      Improvements of risk                          Mura( )
             management
          Normal or defeats
             Reasons of defeats
        Know countermeasures of defeats
Inventory hides waste


             Poor         Quality         Long set up
                                                          Line
             Scheduling   problems        time
                                                        imbalance


                                                                 Lack of
   Raw                       Efficiency of production         house keeping
  Material


             Machine      Long
             Breakdown    transportation Absenteeism    Vendor
                                                        Delivery


                                                           Communication
                                     Customer service
                                                              problem
TPM

Definition of TPM

      1    Total



      2    Productive



      3    Maintenance
Necessity of TPM


   •  Even more severe and total elimination of waste




   •  Requirements for produce quality




   •  To reduce the 8 major equipment losses to zero has been recognized
     as necessary for corporate survival




   •  Avoidance of the 3 Ds (Difficult, Dirty and Dangerous)
Customer orders/ sales plan



  Production planning               Manufacturing




Material         Worker                         Customer
                                 Products                    Q
& Energy                                        demands
                  Equip.                                     C
                                                             P
Investment                                                   D
in equip.

                                                           Safety
                                                           Morale
             Maintenance     Utility


                                                      Management
                                                      Method
TPM

                                             Equipment downtime
                                             loss
  8 Major                                                      Cutting
                                              >   Set-up &   >            >
  Losses                      Equipment
                                                  Adjustment
                                                               blade &
                                                                            Start up loss
                              downtime                         Jig change
                              failure loss        loss         loss



                        <                    <              <                <




                                                                   Defect loss
                          >
            Minor               Speed
            stoppage &          loss
            idling losses
                                                                      >
                                                        Defects &
                                                                          Shutdown loss
                                                        Rework loss
                                                                                            8 Major
                                                                                            Losses
 Equipment
 performance loss
TPM

      5 major losses obstructing manpower efficiency


 Production    •  Management loss
  manhour      •  Operating motions loss
    loss


    Line       •  Line organization loss
               •  Loss due to failure to automate
organization
               •  Logistics loss
manhour loss



  Defect
  Quality      •  Measurement and adjustment loss
   loss
TPM
 Competing with Information Technology

  3 major losses obstructing efficiency of material and energy 1
  utilization


        1




        2




        3
Starbucks’ Brand Meaning
TPM


                      Production automatization

          Operation                        Maintenance



           Automated                      Not automated




    Unmanned equipment produces
                                    It is the “ role of human beings”
                                    to maintain equipment
Starbucks’ Brand Meaning
TPM


  Life cycle of Production system               TPM activity



          Plan and design           -    Easy to produce product design
                                    -    Program to prevent loss

     Construction or building up

                                    -    Setting conditions to prevent
     Operation & Maintenance
                                         losses
                                    -    Controlling conditions to
               Scrap                     eliminate losses
                                    -    Improvement of production
                                         system
TPM

       All worker
       participation type
                                          Dictator type

                                          Mgmt based on order and
 Mgmt based on self-decision              control
 and self control

 -  Relationship and support
                                           -  High productivity can be
 principal
 -  Problem solving by the group           achieved within a short
                                           period
 -  Setting a higher target of
                                           -  Lack of reliability
 performance to be achieved
                                           -  Productivity would
                                           decrease over a long period
                                           of operation
  Effect
  -  Solid reliability
  -  Higher productivity



                                   Comparison
TPM

            To restructure the corporate culture


 Improving      1)  Operator: ‘Jishu-Hozen’
   Human        2)  Maintenance team : High quality maintenance
 resources      3)  Production manager: maintenance free equipment plan




Improving       1)  Attain efficiency through revamping of the existing equipment
  plant         2)  LCC- considered designing of new equipment and minimizing
equipment           their run-up time




                Improving the corporate culture
5 Principles in TPM development


    1    Establish the system to achieve production efficiency



    2    Establish initial production and flow control system for new
         Products and equipment


    3    Establish the ‘Hinshitsu-Hozen’system’



    4    Establish the system to realize operation in the administration



    5    Establish safety, hygiene and working environment protection
TPM

  TPM aims at:


      1       Establishing a corporate culture



          2       Organizing ‘genba-genbutsu’ system to prevent losses
                  and achieve such ‘reduction - to – zero’ targets


              3     Involving all functions of an organization



          4       Involving every member of an organization



      5       Achieving zero losses through the activities
12 steps in TPM development program

Preparations

         Declaration by top management   Declared in TPM

  1

          Introductory education and     Managers/
  2       campaign for TPM               General employees




         Establishing TPM promotion      Committee
  3      Organization and pilot          Special subcommittee
         organization model              TPM promotion office
12 steps in TPM development program




        Setting basic policy and target   Benchmark & target
                                          prediction of effect
  4

        Creating of master plan for       From preparations for
  5     Implementing TPM                  implementation




                                          Invite suppliers,
  6     TPM Kickoff                       cooperation and
                                          affiliated companies
12 steps in TPM development program

Implementation


            Establishing systems for            Pursuing maximum
            Improving Production efficiency     efficiency of production
   7

            Initial control system for new     Easy-to-manufacture
                                               product development &
   8        Products and equipment
                                               easy to operate equipment



                                               Setting conditions to
   9        Establishing the Hinshitsu hozen   Eliminate defective
            system                             Products and control
12 steps in TPM development program

Implementation & Steady application


            Establishing the system to realize   Support for production,
            Operation efficiency in the          Increasing efficiency in
            administration                       Office and OA equipment
   10

            Establishing safety, hygiene, and    Zero-accident,
            Working environment protection       Zero pollution
   11       systems




                                                 Challenge of a
   12       Total application of TPM and
            Raising of its level                 higher target
Project plan Meaning
Starbucks’ Brand



                      Main Tools

    5 Why                      VSM


    MGP                        Gantt Chart


    SIPOC                      Bench Marking

    In-Out of frame            Risk Management

    WBS
TPM


 Equipment efficiency


   Availability

    =      Loading time - downtime
               Loading time
TPM


 Performance rate


   Speed operating rate

    =     Standard cycle time
            Actual cycle time
TPM


 Performance rate


   Net operating rate

    = Product units processed × actual cycle time
          Loading time - downtime
TPM


 Performance rate


   Performance rate

   = Speed operating rate × Net operating rate
TPM


 Quality products rate


   QPR

    = Product units processed – defect units
          Product units processed
TPM


 Overall Equipment Efficiency


   OEE

    = Availability × Performance rate × QPR
TPM



 External appearance                Installation accuracy



 Dimensional accuracy   What the     Function
                        equipment
                        must be
 Assembly accuracy                  Usage environment



  Usage condition                    Material strength
What the equipment must be


              Equipment functions & performance can be
              fully utilized or maintained




             The optimum conditions with the necessary
             conditions satisfactorily maintained




         Recognized                        Not Recognized




Principles are not         Level of criteria
be strictly observed       abided by is low
Slight defects    Law of Heinrich       To prevent slight
grow                                       defects


                                        Induce other
                                           effects

Stop synergy     Even if each effect   Render a greater
Effect of           has a smaller      influence
slight defect       probability
                                       Trigger a mutual
                                       chain reaction



                                       Might be a lot of
Find clue to     Several causes        causes
   solve         Combined causes       Factors which
                                       causes for the
                                       symptom
                                       The combination of
                                       possible causes
Restoration Concept

                            How quickly should we
                            find them?




                What does
 What is        proper
 restoration?   condition
                mean?



                            How to properly restore
TPM


 Normal and abnormal


 1.  They can be judged as normal or abnormal if the viewpoint
     changed
 2.  The relationship of causes and effect from the trouble cannot
     be clearly identified
 3.  Even if the trouble is corrected, it is impossible to predict the
     results of the corrections
 4.  Cases where the correction is considered to contribute to the
     creation of a good result are few
 5.  Should be set of the range of the boundary should be narrowed
 6.  Should be applied in the trial and error manner to see the
     results
Basic Philosophy of Zero Failure


       1




       2




       3
Classification of Latent defects



                1)  Defects which cannot be visually observed unless the
 Physical
  Improving         equipment is dismantled
 latent
    Human       2)  Defects which cannot be visually noticed due to improper
 defects
  resources         installation location of equipment
                3)  Defects which are likely to be ignored since they are covered
                    with dust or they are heavily soiled

Improving
  plant
equipment
                1)  Operator or maintenance man’s indifference
Psychological   2)  Operator or maintenance man is not well familiarized with type of
latent              defects
                3)  Operator or maintenance man’s ignorance bases on their own
defect
                    judgement
5 countermeasures to reduce failure to zero



     1     Establish Basic Conditions



     2     Keep operating conditions



     3     Restore the deterioration



     4     Improve the weak points in design



     5     Improve the skill level
TPM

How to advance ‘Kobetsu – Kaizen’


 Efficient equipment, worker, and material and energy utilization, that
 is extremes of productivity, and aims at achieving substantial effects
TPM- 10 step development of Kobetsu-Kaizen
        Select model equipment/line/process


        Organize project teams

        Grasp present losses

        Kaizen theme and goal setting

        Mapping out and evaluation of analysis and countermeasures

        Select model equipment/line/process

        Organize project teams

        Grasp present losses

        Kaizen theme and goal setting

        Mapping out and evaluation of analysis and countermeasures
PM Analysis


              Phenomena (non)

  P
              Physical



              Mechanism
  M
              Relationship
              ( Machine, Man, Material & Method
Steps forBrandanalysis
Starbucks’ PM Meaning




  1. Clarification of phenomenon    5. Study of what the conditions
                                    must be
                                    6. Study of investigation
  2. Physical view of phenomenon
                                    method

  3. Contributing conditions for    7. Point out “fuguai”
  phenomenon

 4. Study the relation between      8. Implementation and plan of
 equipment, men, material& method   KAIZEN
Kaizen Process with core process




                   Business        Essential
                   Strategy      Business Index
Leadership
 Process
                 Core Business     Result of             Customer’s
                    Process        Process                 Needs




             Process of
         delegation of power            Kaizen Process
Project Risk Management


 Examples of Risk


  1.  Overwork and possibilities of change of project team

  2.  Target products/ services and process changes

  3.  External business intervention
Project Risk Management


 Risk Factor Mgmt

  Control by Champion

  1.  Factor deduction : Brainstorming, SIPOC review

  2.  Factor analyze : Project evaluation by Risk factors

  3.  Risk factor measure establishment :
      - Set up main priority with management

  4. Reduction of risk management : Progress method by mgmt
Project Risk Management


 Risk Factor Mgmt


   Risk = Unknown
   •    Unknown
        - Macro issues
        - Possibilities for Kaizen opportunities
        - Cannot control by decision maker
        - Unclear of probability


   Risk = Danger + Opportunity
Delphi




                                     Interview

                    Risk
                    Identification
Brainstorming




                              SWOT
VOC Analysis




              VOC
      1       (Voice of Customer)


              KCI
      2
              (Key Consumer Issue)


              CCR
      3
              (Critical Customer Requirements)




    To analyze data (VOC) about customer’s needs
VOC Analysis


    1       Necessity for grasping current & potential customers needs



        2     Necessity for more customer’s information



             3   Differentiation from other competitors



        Understanding from VOC
        -  Customer’s business
        -  Core factors of customers
        -  Knowing things to do/ Kaizen for right process
VOC Analysis Procedure



  VOC Survey Method       VOC Classify Tools     VOC Analyze Tools

  1.    Passive Method     -  Scene scenario      -  Pareto Analyze
  -     Materials          -  Affinity Diagram    -  Kano Analyze
  -     Internal survey    -  Tree Diagram
  -     External survey

  2.    Active Method
  -     Interview
  -     FGI
  -     Survey
  -     Observation
VOC Analysis



              Passive Survey Method
   1.  Customer claim
   2.  Customer complaint
   3.  Return
   4.  Products/ service sales preferences
   5.  Contract cancel rate
   6.  Market share transition
   7.  Customer Retention
   8.  Website product contact number
   9.  Marketing strategy report
   10.  B/M report
   11.  Technology result report
VOC Analysis

                           Active method


Interview    Grasp customers needs from individual interview



FGI          Gather representative people from groups and gather a
             data during conversation


Survey       Collect data with survey paper



Observatio   Observe customers action and grasp their needs
n

Collect
             Grasp data from external research sources
data
VOC Analysis- Interview

 Purpose



  To find specific customers needs of Service Issue, Products/ Service Quality



 Usage        Process of interview is important to grasp customers



  Beginning stage
  -  Grasp customer’s expectation and understanding for important things for
  customers

  Mid stage
  -  Understanding why these issues are important and investigate points

  Last stage
  - Clarifying new issues, collecting ideas and verifying ideas
VOC Analysis- Interview


              Characteristics of necessary information

               •  individual specific points
               •  Participate in senior level
 Individual    •  Big scale of customers


               •  Information for customer’s needs for Similar products & services
  Group        •  Participate in mid and lower level
               •  Big scale of customers


   Tele.       •  Information for customers in different areas
               •  Information of basic and simple data
  / Male       •  Fast transition of collecting data
VOC Analysis- Information Technology
 Competing with Interview

 Key characteristics


       1




       2




       3
VOC Analysis- Interview

 For effective interview


     Select interviewee who can share right information

     Make understand customer

     Being a good listener


     Standardization of survey to prevent errors

     Comply appropriate time –try to finish in an hour

     “ Is there anything that I forgot to ask you?”
VOC Analysis- FGI

 Purpose



  To compose specific segmentation of customer group’s needs



 Usage



  -  Classify and define customer's needs

  -  Secure the priority of customers needs and insight

  -  Abstain feedback
VOC Analysis- FGI


  Method




  -  Consist of 7 to 13 people
  -  Organize focus at least 3 focus group to avoid mistakes and
  errors
  -  2~4 hours
  -  Ask discussion to participants with many topics
  -  Give incentive to participants
VOC Analysis- Information Technology
 Competing with Interview
VOC Analysis- Survey

 3 principles for survey



         1        Right Purpose



         2        Right Way



         3        Right Value
Tree Diagram


                   Generalize




 Specific &
 Easy to measure
VOC Analysis Information Technology
 Competing with

 Method to know Customer’s needs

       1


       2


       3


       4


       5
Project CTQ

 CTQ – Critical To Quality



         1        Measurable



         2        Indicator for success of projects



         3        Indicator for Customer needs
Project CTQ

 CTQ – Critical To Quality



         4        Understandable



         5        To provide basic data for decision
                  making


         6        To apply wisely and widely
Project CTQ

 CTQ – Critical To Quality



         7        One Interpretation



         8        Need to be economic



         9        Compatibility
Project Techniques
Thank You
   Bodek Group

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Junwoo Park

  • 2. Visual Management Establish and display work priorities Visually display daily process performance Support communication within a work area or between management and staff Provide feedback to team members, supervisors and managers and make it possible for all employees to contribute to continuous improvement
  • 3. Visual Management Management innovation Process People Product VALUE
  • 4. ¥108.6 billion - 703 stores in Japan - 1000 stores in China 30,000 employees
  • 6. Space Management Uniqlo’s 4 1 No personal table 2 No chairs in meeting rooms 3 No personal conversation during work time 4 No lights after 7 p.m.
  • 7. Characteristics of Six Sigma Quality Six Sigma 1)  Getting fast can actually improve quality 2)  Improving quality can Quality Six Sigma Quality actually make you faster 3)  Reducing complexity improves speed and quality Speed
  • 8. Customer trends : 2S+4G Smart + Slow life style Global Digital Grey Green Gender
  • 9. Visual control tools and methods To set up poles next to inventory stacks and mark down the maximum allowable stock Signboard Red line Strategy demarcators Red Tag White line strategy demarcators To organize workshops in an orderly condition, marking out pathways and in- process storage sites
  • 10. Visual control tools and methods Standard operation Kanban charts Error prevention Andon Production Defective management item boards displays
  • 11. Kaizen Kaizen
  • 12. Statistical approach 40 hours 10 1 year Minutes/day X all employee= ??? 1 week salary
  • 13. Marketing Strategy Program Information Implementation Marketing Insight Feedback Strategy Idea Mobilization Environment Customer 내부역량 Strategic Strategy Monitoring Analysis Analysis Fit Deployment
  • 14. Method Management 1 Business core management 2 Business structure adjustment 3 Timing & Risk Management
  • 15. Method Management Starbucks’ Brand Meaning Samsung Remove Reduce Rearrange
  • 16. Acquaintance Management 1 Global trend 2 Benchmarking 3 Communication 4 Ex. IBM (Innovation Jam, P&G (Virus Marketing))
  • 17. Result Management 1 How much you create value, not how much you work 2 Infinite challenge 3 Compensation and Incentive
  • 18. Time Management 1 Focus on highly efficient work 2 Work & Life Balance 3 Reduced-Load Work
  • 19. Specific steps for accurate project Select Issue Business system / Process Sustain The best Optimize Define New Identify Design Optimization Verify Process (if needed) Measure Analyze Redesign Improve Control Redesign Enough capability
  • 20. TPM All-out autonomous management Standardization Autonomous inspection General inspection Preparation of tentative ‘Jishu-hozen’ standards Countermeasures for the causes of forced deterioration and improving hard to access areas Initial clean-up Examples of steps for evolving ‘ Jishu-Hozen’
  • 21. Classification of Maintenance Activities As for measures 1 Normal Operation Maintain activities 1 to maintain Preventive Maintenance 2 Kaizen activities 2 measures maintenance As for Kaizen activity 1 Corrective Incorporated into 3 elements measures maintenance Activities to prevent deterioration Maintenance Activities to measure deterioration 2 Prevention Activities to restore deterioration
  • 22. TPM- What do Skills Mean? Persons who can Who can act Phenomenon precisely judge reflexively found the phenomenon 5 senses Brain The Limbs Perception Judgment Acton Information Accumulation Education Experience
  • 23. TPM – Concept of Life Cycle cost Cost of Purchases (R&D, Production) Training cost Service cost & technical information cost Logistical Support cost Transport and Handing cost Facility and Replacement and equipment scrap cost cost
  • 24. Failure factors of Kaizen Systems without passion Passion without Systmes
  • 25. Characteristics of bankrupt companies 1 Arrogant-overconfidence of managers and executives 2 Lack of Employee education, inadequate education 3 Lack of business goals and planning 4 Lack knowledge of new products 5 Delay of technology development
  • 26. Characteristics of bankrupt companies 6 Workers discord, problems Confusion, mix business with personal affairs, 7 Lack of business philosophy 8 Lack of strength of decision making & power of execution 9 Lack of computation management and study 10 Stubbornness, lack of self examination
  • 28. Definition of TPM Operator’s skills Operation standards Instruction of operation Knowledge Sequence Output Skill Method Products Products Quantity Delivery Service Information Input Material Process Utilities Energy Information Electricity Gas Environment Steam Support material & Energy Equipment Compressed air Cleanliness Industrial water Brightness Die Vibrations Lubricant Tools & Jigs Noise Cutting oil Cutting blades Temperature Working oil Measuring Humidity Others instruments
  • 29. VOR VOS VOM VOC Strategy Business Department Strategy improvement) (Continuous Kaizen VOE Communication VOT Risk Management Cooperation Management Leadership Management
  • 30. VOC Analysis 1 Necessity for grasping current & potential customers needs 2 Necessity for more customer’s information 3 Differentiation from other competitors Understanding from VOC -  Customer’s business -  Core factors of customers -  Knowing things to do/ Kaizen for right process
  • 31. Statistical approach 100% 100% 100% 13 departments 100% 99% .99^13=.88 88%
  • 32. Speed Simple System New 5S Service Smile
  • 33. Genba (現場, Kaizen actual place) 3GEN Genbutsu Genjitsu (現物, ( , actual thing) Actual facts
  • 34. Product Genba design su Genbut Productio n techno logy Genjitsu Manufac turing te c hnology Kaizen Capi tal eq uipm ent m anag Prod eme ntrol uct fl nt tion co ow c Produc ontro l Stan si n g dard Purcha ent izatio n nagem on ma Inf ormati
  • 35. Purpose of Inspection Total cost of revenue improvement in risk management Correction of significant risk issues Presentation of management’s determination Provide objective Muri( information Kaizen Muda( Improvements of risk Mura( ) management Normal or defeats Reasons of defeats Know countermeasures of defeats
  • 36. Inventory hides waste Poor Quality Long set up Line Scheduling problems time imbalance Lack of Raw Efficiency of production house keeping Material Machine Long Breakdown transportation Absenteeism Vendor Delivery Communication Customer service problem
  • 37. TPM Definition of TPM 1 Total 2 Productive 3 Maintenance
  • 38. Necessity of TPM •  Even more severe and total elimination of waste •  Requirements for produce quality •  To reduce the 8 major equipment losses to zero has been recognized as necessary for corporate survival •  Avoidance of the 3 Ds (Difficult, Dirty and Dangerous)
  • 39. Customer orders/ sales plan Production planning Manufacturing Material Worker Customer Products Q & Energy demands Equip. C P Investment D in equip. Safety Morale Maintenance Utility Management Method
  • 40. TPM Equipment downtime loss 8 Major Cutting > Set-up & > > Losses Equipment Adjustment blade & Start up loss downtime Jig change failure loss loss loss < < < < Defect loss > Minor Speed stoppage & loss idling losses > Defects & Shutdown loss Rework loss 8 Major Losses Equipment performance loss
  • 41. TPM 5 major losses obstructing manpower efficiency Production •  Management loss manhour •  Operating motions loss loss Line •  Line organization loss •  Loss due to failure to automate organization •  Logistics loss manhour loss Defect Quality •  Measurement and adjustment loss loss
  • 42. TPM Competing with Information Technology 3 major losses obstructing efficiency of material and energy 1 utilization 1 2 3
  • 43. Starbucks’ Brand Meaning TPM Production automatization Operation Maintenance Automated Not automated Unmanned equipment produces It is the “ role of human beings” to maintain equipment
  • 44. Starbucks’ Brand Meaning TPM Life cycle of Production system TPM activity Plan and design -  Easy to produce product design -  Program to prevent loss Construction or building up -  Setting conditions to prevent Operation & Maintenance losses -  Controlling conditions to Scrap eliminate losses -  Improvement of production system
  • 45. TPM All worker participation type Dictator type Mgmt based on order and Mgmt based on self-decision control and self control -  Relationship and support -  High productivity can be principal -  Problem solving by the group achieved within a short period -  Setting a higher target of -  Lack of reliability performance to be achieved -  Productivity would decrease over a long period of operation Effect -  Solid reliability -  Higher productivity Comparison
  • 46. TPM To restructure the corporate culture Improving 1)  Operator: ‘Jishu-Hozen’ Human 2)  Maintenance team : High quality maintenance resources 3)  Production manager: maintenance free equipment plan Improving 1)  Attain efficiency through revamping of the existing equipment plant 2)  LCC- considered designing of new equipment and minimizing equipment their run-up time Improving the corporate culture
  • 47. 5 Principles in TPM development 1 Establish the system to achieve production efficiency 2 Establish initial production and flow control system for new Products and equipment 3 Establish the ‘Hinshitsu-Hozen’system’ 4 Establish the system to realize operation in the administration 5 Establish safety, hygiene and working environment protection
  • 48. TPM TPM aims at: 1 Establishing a corporate culture 2 Organizing ‘genba-genbutsu’ system to prevent losses and achieve such ‘reduction - to – zero’ targets 3 Involving all functions of an organization 4 Involving every member of an organization 5 Achieving zero losses through the activities
  • 49. 12 steps in TPM development program Preparations Declaration by top management Declared in TPM 1 Introductory education and Managers/ 2 campaign for TPM General employees Establishing TPM promotion Committee 3 Organization and pilot Special subcommittee organization model TPM promotion office
  • 50. 12 steps in TPM development program Setting basic policy and target Benchmark & target prediction of effect 4 Creating of master plan for From preparations for 5 Implementing TPM implementation Invite suppliers, 6 TPM Kickoff cooperation and affiliated companies
  • 51. 12 steps in TPM development program Implementation Establishing systems for Pursuing maximum Improving Production efficiency efficiency of production 7 Initial control system for new Easy-to-manufacture product development & 8 Products and equipment easy to operate equipment Setting conditions to 9 Establishing the Hinshitsu hozen Eliminate defective system Products and control
  • 52. 12 steps in TPM development program Implementation & Steady application Establishing the system to realize Support for production, Operation efficiency in the Increasing efficiency in administration Office and OA equipment 10 Establishing safety, hygiene, and Zero-accident, Working environment protection Zero pollution 11 systems Challenge of a 12 Total application of TPM and Raising of its level higher target
  • 53. Project plan Meaning Starbucks’ Brand Main Tools 5 Why VSM MGP Gantt Chart SIPOC Bench Marking In-Out of frame Risk Management WBS
  • 54. TPM Equipment efficiency Availability = Loading time - downtime Loading time
  • 55. TPM Performance rate Speed operating rate = Standard cycle time Actual cycle time
  • 56. TPM Performance rate Net operating rate = Product units processed × actual cycle time Loading time - downtime
  • 57. TPM Performance rate Performance rate = Speed operating rate × Net operating rate
  • 58. TPM Quality products rate QPR = Product units processed – defect units Product units processed
  • 59. TPM Overall Equipment Efficiency OEE = Availability × Performance rate × QPR
  • 60. TPM External appearance Installation accuracy Dimensional accuracy What the Function equipment must be Assembly accuracy Usage environment Usage condition Material strength
  • 61. What the equipment must be Equipment functions & performance can be fully utilized or maintained The optimum conditions with the necessary conditions satisfactorily maintained Recognized Not Recognized Principles are not Level of criteria be strictly observed abided by is low
  • 62. Slight defects Law of Heinrich To prevent slight grow defects Induce other effects Stop synergy Even if each effect Render a greater Effect of has a smaller influence slight defect probability Trigger a mutual chain reaction Might be a lot of Find clue to Several causes causes solve Combined causes Factors which causes for the symptom The combination of possible causes
  • 63. Restoration Concept How quickly should we find them? What does What is proper restoration? condition mean? How to properly restore
  • 64. TPM Normal and abnormal 1.  They can be judged as normal or abnormal if the viewpoint changed 2.  The relationship of causes and effect from the trouble cannot be clearly identified 3.  Even if the trouble is corrected, it is impossible to predict the results of the corrections 4.  Cases where the correction is considered to contribute to the creation of a good result are few 5.  Should be set of the range of the boundary should be narrowed 6.  Should be applied in the trial and error manner to see the results
  • 65. Basic Philosophy of Zero Failure 1 2 3
  • 66. Classification of Latent defects 1)  Defects which cannot be visually observed unless the Physical Improving equipment is dismantled latent Human 2)  Defects which cannot be visually noticed due to improper defects resources installation location of equipment 3)  Defects which are likely to be ignored since they are covered with dust or they are heavily soiled Improving plant equipment 1)  Operator or maintenance man’s indifference Psychological 2)  Operator or maintenance man is not well familiarized with type of latent defects 3)  Operator or maintenance man’s ignorance bases on their own defect judgement
  • 67. 5 countermeasures to reduce failure to zero 1 Establish Basic Conditions 2 Keep operating conditions 3 Restore the deterioration 4 Improve the weak points in design 5 Improve the skill level
  • 68. TPM How to advance ‘Kobetsu – Kaizen’ Efficient equipment, worker, and material and energy utilization, that is extremes of productivity, and aims at achieving substantial effects
  • 69. TPM- 10 step development of Kobetsu-Kaizen Select model equipment/line/process Organize project teams Grasp present losses Kaizen theme and goal setting Mapping out and evaluation of analysis and countermeasures Select model equipment/line/process Organize project teams Grasp present losses Kaizen theme and goal setting Mapping out and evaluation of analysis and countermeasures
  • 70. PM Analysis Phenomena (non) P Physical Mechanism M Relationship ( Machine, Man, Material & Method
  • 71. Steps forBrandanalysis Starbucks’ PM Meaning 1. Clarification of phenomenon 5. Study of what the conditions must be 6. Study of investigation 2. Physical view of phenomenon method 3. Contributing conditions for 7. Point out “fuguai” phenomenon 4. Study the relation between 8. Implementation and plan of equipment, men, material& method KAIZEN
  • 72. Kaizen Process with core process Business Essential Strategy Business Index Leadership Process Core Business Result of Customer’s Process Process Needs Process of delegation of power Kaizen Process
  • 73. Project Risk Management Examples of Risk 1.  Overwork and possibilities of change of project team 2.  Target products/ services and process changes 3.  External business intervention
  • 74. Project Risk Management Risk Factor Mgmt Control by Champion 1.  Factor deduction : Brainstorming, SIPOC review 2.  Factor analyze : Project evaluation by Risk factors 3.  Risk factor measure establishment : - Set up main priority with management 4. Reduction of risk management : Progress method by mgmt
  • 75. Project Risk Management Risk Factor Mgmt Risk = Unknown •  Unknown - Macro issues - Possibilities for Kaizen opportunities - Cannot control by decision maker - Unclear of probability Risk = Danger + Opportunity
  • 76. Delphi Interview Risk Identification Brainstorming SWOT
  • 77. VOC Analysis VOC 1 (Voice of Customer) KCI 2 (Key Consumer Issue) CCR 3 (Critical Customer Requirements) To analyze data (VOC) about customer’s needs
  • 78. VOC Analysis 1 Necessity for grasping current & potential customers needs 2 Necessity for more customer’s information 3 Differentiation from other competitors Understanding from VOC -  Customer’s business -  Core factors of customers -  Knowing things to do/ Kaizen for right process
  • 79. VOC Analysis Procedure VOC Survey Method VOC Classify Tools VOC Analyze Tools 1.  Passive Method -  Scene scenario -  Pareto Analyze -  Materials -  Affinity Diagram -  Kano Analyze -  Internal survey -  Tree Diagram -  External survey 2.  Active Method -  Interview -  FGI -  Survey -  Observation
  • 80. VOC Analysis Passive Survey Method 1.  Customer claim 2.  Customer complaint 3.  Return 4.  Products/ service sales preferences 5.  Contract cancel rate 6.  Market share transition 7.  Customer Retention 8.  Website product contact number 9.  Marketing strategy report 10.  B/M report 11.  Technology result report
  • 81. VOC Analysis Active method Interview Grasp customers needs from individual interview FGI Gather representative people from groups and gather a data during conversation Survey Collect data with survey paper Observatio Observe customers action and grasp their needs n Collect Grasp data from external research sources data
  • 82. VOC Analysis- Interview Purpose To find specific customers needs of Service Issue, Products/ Service Quality Usage Process of interview is important to grasp customers Beginning stage -  Grasp customer’s expectation and understanding for important things for customers Mid stage -  Understanding why these issues are important and investigate points Last stage - Clarifying new issues, collecting ideas and verifying ideas
  • 83. VOC Analysis- Interview Characteristics of necessary information •  individual specific points •  Participate in senior level Individual •  Big scale of customers •  Information for customer’s needs for Similar products & services Group •  Participate in mid and lower level •  Big scale of customers Tele. •  Information for customers in different areas •  Information of basic and simple data / Male •  Fast transition of collecting data
  • 84. VOC Analysis- Information Technology Competing with Interview Key characteristics 1 2 3
  • 85. VOC Analysis- Interview For effective interview Select interviewee who can share right information Make understand customer Being a good listener Standardization of survey to prevent errors Comply appropriate time –try to finish in an hour “ Is there anything that I forgot to ask you?”
  • 86. VOC Analysis- FGI Purpose To compose specific segmentation of customer group’s needs Usage -  Classify and define customer's needs -  Secure the priority of customers needs and insight -  Abstain feedback
  • 87. VOC Analysis- FGI Method -  Consist of 7 to 13 people -  Organize focus at least 3 focus group to avoid mistakes and errors -  2~4 hours -  Ask discussion to participants with many topics -  Give incentive to participants
  • 88. VOC Analysis- Information Technology Competing with Interview
  • 89. VOC Analysis- Survey 3 principles for survey 1 Right Purpose 2 Right Way 3 Right Value
  • 90. Tree Diagram Generalize Specific & Easy to measure
  • 91. VOC Analysis Information Technology Competing with Method to know Customer’s needs 1 2 3 4 5
  • 92. Project CTQ CTQ – Critical To Quality 1 Measurable 2 Indicator for success of projects 3 Indicator for Customer needs
  • 93. Project CTQ CTQ – Critical To Quality 4 Understandable 5 To provide basic data for decision making 6 To apply wisely and widely
  • 94. Project CTQ CTQ – Critical To Quality 7 One Interpretation 8 Need to be economic 9 Compatibility
  • 96. Thank You Bodek Group