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Fast Track Management Consultants

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About - Fast Track Management Consultants

• Fast Track Management Consultants (A division of Fast Track Corporate Solutions Pvt Ltd) is a young, dynamic and fastest growing Management Consulting, HR Recruitments, Outsourcing and Training services providing organization driven by knowledge, integrity and performance and committed to customer delight.

• We are one stop corporate solutions provider company, having headquarter at Pune, India. Our offerings span Management Consulting, Business plan and strategy formulation, HR

Recruitments, Outsourcing and Training services to corporate sector.

• Our services have developed based on over 18 yrs of industrial experience, international best practices and learning's from number of assignments executed by us and are adapted to suit our clients’ businesses. Be it the right Business plan and strategy for your organization, or a productivity and business performance improvements, or effective manpower planning and recruitment services or outsourcing of critical functions, or solutions for your corporate training needs, our services are customized and made suitable…. just for you.

• Our business consulting and outsourcing services help accelerate innovation, increase

productivity, reduce costs and optimize asset utilization in order to achieve consistent sales growth and profitability.

• Our HR Recruitments services will help you to identify and recruit the best talent with the relevant

experience at fast speed.

• Our drive - We Help You Grow >>


Fast Track - Santosh Kasture

Santosh Kasture is a highly result oriented and successful corporate professional, Business growth consultant, Management process leader, Entrepreneur, Author, Corporate trainer and Public speaker on Business and Management. As a Management thinker and executor he specialize in the areas of Strategic Vision, Business planning, Leadership, Benchmarking, Performance management and Manufacturing operations techniques.

He is Mechanical Engineer with a Masters in Operations and Management from Pune University. He is also a post-graduate in materials management from IIMM, Bangalore. He has two decades of industry experience working as a top management team member in India and abroad with world’s leading MNC's - in different functions like Corporate strategy and planning, Profitability, Manufacturing operations, Purchase and SCM, Branding and product management, Sales and marketing and International business management.

He is having wide international business experience and frequently travelled more than 30 countries including USA, UK, France, UAE, Oman, South Korea, Singapore, Malaysia, China and others. He is a management consultant and associated with aspiring and growth oriented MSME's and some of the best-known companies in India and abroad.

He believes that the people, process, product and performance (4P) are the key ingredients for the success of any organization. He founded the Fast Track Corporate Solutions Pvt Ltd to help the organizations to explore their true potential, be committed and focused in their approach and work and achieve the desired goals consistently by managing the 4P's effectively.

Active as a corporate trainer and Guest faculty with leading Management institutes in India, he has vast experience in classroom training as well as outdoor training programs. Has taken sessions at all management levels in corporate/institutes on Strategic vision, Business planning and strategy, Profitability thru focus, Goal and Role setting for Growth, Leadership, Lean manufacturing, Supply chain management, Time management, Negotiation skills, Branding and Marketing, Selling skills, Teamwork and Team Building, Communication and Behavioral skills and other areas.


4

• TPS

• Lean Manufacturing

• JIT

• TPM

• 5S

• BPR

• TQM

• Six Sigma

By

Santosh Kasture

World Class Manufacturing

Presented by - Santosh Kasture 5

• The Toyota Production System (TPS) is an integrated socio-technical system,

developed by Toyota, that comprises its management philosophy and practices.

• The TPS organizes manufacturing and logistics for the automobile manufacturer,

including interaction with suppliers and customers.

• The system is a major precursor of the more generic "Lean manufacturing."

• Taiichi Ohno, Shigeo Shingo and Eiji Toyoda developed the system between 1948

and 1975

• Originally called "Just In Time Production," it builds on the approach created by the

founder of Toyota, Sakichi Toyoda, his son Kiichiro Toyoda, and the engineer Taiichi

Ohno.

• The founders of Toyota drew heavily on the work of W. Edwards Deming and the

writings of Henry Ford. When these men came to the United States to observe the

assembly line and mass production that had made Ford rich, they were unimpressed.

• While shopping in a supermarket they observed the simple idea of an automatic drink

resupplier; when the customer wants a drink, he takes one, and another replaces it. The

principles underlying the TPS are embodied in The Toyota Way.

The Toyota Production System ( TPS )


• The main objectives of the TPS are to design out overburden (muri) and inconsistency

(mura), and to eliminate waste (muda).

• The most significant effects on process value delivery are achieved by designing a

process capable of delivering the required results smoothly; by designing out 'mura'. It is

also crucial to ensure that the process is as flexible as necessary without stress or 'muri'

since this generates 'muda'. Finally the tactical improvements of waste reduction or the

elimination of 'muda' are very valuable.

• There are seven kinds of muda that are addressed in the TPS:

1.over-production

2.motion (of operator or machine)

3.waiting (of operator or machine)

4.conveyance

5.processing itself

6.inventory (raw material)

7.correction (rework and scrap)



• Toyota received their inspiration for the system, not from the American automotive industry

(at that time the world's largest by far), but from visiting a supermarket. This occurred when

a delegation from Toyota (led by Ohno) visited the United States in the 1950s. The

delegation first visited several Ford Motor Company automotive plants in Michigan but,

despite Ford being the industry leader at that time, found many of the methods in use to be

not very effective. They were mainly appalled by the large amounts of inventory on site, by

how the amount of work being performed in various departments within the factory was

uneven on most days, and the large amount of rework at the end of the process.

• However, on a subsequent visit to a Piggly Wiggly, the delegation was inspired by how the

supermarket only reordered and restocked goods once they’d been bought by customers.

Toyota applied the lesson from Piggly Wiggly by reducing the amount of inventory they

would hold only to a level that its employees would need for a small period of time, and then

subsequently reorder. This would become the precursor of the now-famous Just-in-Time

(JIT) inventory system.

• While low inventory levels are a key outcome of the Toyota Production System, an

important element of the philosophy behind its system is to work intelligently and eliminate

waste so that inventory is no longer needed.

• This system, more than any other aspect of the company, is responsible for having made

Toyota the company it is today. Toyota has long been recognized as a leader in the

automotive manufacturing and production industry.



• The cycle of kaizen activity can be defined

as:

1. standardize an operation

2. measure the standardized operation (find

cycle time and amount of in-process

inventory)

3. gauge measurements against

requirements

4. innovate to meet requirements and

increase productivity

5. standardize the new, improved operations

6. continue cycle

This is also known as the Shewhart cycle,

Deming cycle, or PDCA.

• The Toyota Production System is known for kaizen, where all line personnel are expected to

stop their moving production line in case of any abnormality and along with their supervisor,

suggest an improvement to resolve the abnormality which may initiate a kaizen.


http://upload.wikimedia.org/wikipedia/commons/f/f4/PDCA-Two-Cycles.svg


The underlying principles, called "The Toyota Way" are outlined as follows:-

• The right process will produce the right results

1.Create continuous process flow to bring problems to the surface

2.Use the "pull" system to avoid overproduction

3.Level out the workload (heijunka). (Work like the tortoise, not the hare.)

4.Build a culture of stopping to fix problems, to get quality right from the first

5.Standardized tasks are the foundation for continuous improvement and employee

empowerment

6.Use visual control so no problems are hidden

7.Use only reliable, thoroughly tested technology that serves your people and processes.

The Toyota Way

Base your management decisions on a long-term philosophy,

even at the expense of short-term financial goals.


• Add value to the organization by developing your people and partners

1.Grow leaders who thoroughly understand the work, live the philosophy, and teach it to

others.

2.Develop exceptional people and teams who follow your company's philosophy.

3.Respect your extended network of partners and suppliers by challenging them and helping

them improve.

• Continuously solving root problems drives organizational learning

1.Go and see for yourself to thoroughly understand the situation (Genchi Genbutsu);

2.Make decisions slowly by consensus, thoroughly considering all options (Nemawashi);

implement decisions rapidly;

3.Become a learning organization through relentless reflection (Hansei) and continuous

improvement (Kaizen).

• The Toyota production system has been compared to squeezing water from a dry towel.

What this means is that it is a system for thorough waste elimination. Here, waste refers to

anything which does not advance the process, everything that does not increase added

value.

The Toyota Way


• Andon - Signboard

• Genchi Genbutsu - Go and see for yourself

• Hansei - Self-reflection

• Heijunka - Production Smoothing

• Jidoka - Autonomation - automation with human intelligence

• JIT - Just in time

• Kaizen - Continuous Improvement

• Kanban - Sign, Index Card

• Manufacturing supermarket - where all components are available to be withdrawn by a

process

• Muda - Waste

• Mura - Unevenness

• Muri - Overburden

• Nemawash - Laying the groundwork / Going around the roots

• Poka-yoke - fail-safing / fool proof

Commonly Used Terminology


• Lean manufacturing or lean production, which is often known simply as "Lean“, is a

production practice that considers the expenditure of resources for any goal other than the

creation of value for the end customer to be wasteful, and thus a target for elimination.

• Working from the perspective of the customer who consumes a product or service, "value"

is defined as any action or process that a customer would be willing to pay for.

• Lean is centered around creating more value with less work.

• Lean manufacturing is a generic process management philosophy derived mostly from the

Toyota Production System (TPS) and identified as "Lean" only in the 1990s.It is renowned for

its focus on reduction of the original Toyota seven wastes in order to improve overall

customer value

• Lean manufacturing is often seen as a more refined version of earlier efficiency efforts,

building upon the work of earlier leaders such as Taylor or Ford, and learning from their

mistakes.

Lean Manufacturing


Lean Manufacturing


• Lean is the set of "tools" that assist in the identification and steady elimination of waste

(muda). As waste is eliminated, quality improves while production time and cost are reduced.

Examples of such "tools" are Value Stream Mapping, 5 S, Kanban (pull systems), and poka-

yoke (error-proofing).

• There is a second approach to Lean Manufacturing, which is promoted by Toyota, in which

the focus is upon improving the "flow" or smoothness of work, thereby steadily eliminating

mura ("unevenness") through the system and not upon 'waste reduction' per se. Techniques to

improve flow include production leveling, "pull" production (by means of kanban).

• Both Lean and TPS can be seen as a loosely connected set of potentially competing

principles whose goal is cost reduction by the elimination of waste. These principles include:

- Pull processing, - Flexibility,

- First-time right/quality, - Smart automation,

- Waste minimization, - Load leveling and production flow,

- Continuous improvement, - Visual control

- Building and maintaining a long term relationship with suppliers,

Lean Manufacturing


• The TPS has two pillar concepts: Just-in-time (JIT) or "flow", and "autonomation" (smart

automation).

1. JIT / Flow :- If production flows perfectly then there is no inventory; if customer valued

features are the only ones produced, then product design is simplified and effort is only

expended on features the customer values.

2. Autonomation :- The other of the two TPS pillars is the very human aspect of

autonomation, whereby automation is achieved with a human touch.The "human touch" here

meaning to automate so that the machines/systems are designed to aid humans in focusing

on what the humans do best. This aims, for example, to give the machines enough

intelligence to recognize when they are working abnormally and flag this for human attention.

Thus, in this case, humans would not have to monitor normal production and only have to

focus on abnormal, or fault, conditions.

• Lean implementation is therefore focused on getting the right things to the right place at the

right time in the right quantity to achieve perfect work flow, while minimizing waste and being

flexible and able to change.

• Lean aims to make the work simple enough to understand, do and manage. To achieve

these three goals at once there is a belief held by some that Toyota's mentoring process, is

one of the best ways to foster Lean thinking up and down the organizational structure. This is

the process undertaken by Toyota as it helps its suppliers improve their own production.

Lean Manufacturing


• While the elimination of waste may seem like a simple and clear subject it is noticeable that

waste is often very conservatively identified.

• The elimination of waste is the goal of Lean, and Toyota defined three broad types of waste:

muda, muri and mura.

• The original seven muda are - TIMWOOD :-

1. Transportation (moving products that is not actually required to perform the processing)

2. Inventory (all components, work-in-progress and finished product not being processed)

3. Motion (people or equipment moving or walking more than is required to perform the

processing)

4. Waiting (waiting for the next production step)

5. Overproduction (production ahead of demand)

6. Over Processing (due to poor tool or product design creating activity)

7. Defects (the effort involved in inspecting for and fixing defects)

Lean Manufacturing

June 2009 Presented by - Santosh Kasture 17

Lean Implementation :- With a tools-based approach

1. Senior management to agree and discuss their lean vision

2. Management brainstorm to identify project leader and set objectives

3. Communicate plan and vision to the workforce

4. Form the Lean Implementation team (5-7 works best, all from different departments)

5. Appoint members of the Lean Manufacturing Implementation Team

6. Train the Implementation Team in the various lean tools - make a point of trying to visit

other non competing businesses which have implemented lean

7. Select a Pilot Project to implement – 5S is a good place to start

8. Run the pilot for 2–3 months - evaluate, review and learn from your mistakes

9. Roll out pilot to other factory areas

10. Evaluate results, encourage feedback

11. Stabilize the positive results by teaching supervisors how to train the new standards

you've developed with TWI methodology (Training Within Industry)

12. Once you are satisfied that you have a habitual program, consider introducing the next

lean tool. Select the one which will give you the biggest return for your business

Lean Implementation


Lean Implementation


• Shigeo Shingo ( 1909-1990), born in Saga City, Japan, was a Japanese industrial engineer

who distinguished himself as one of the world’s leading experts on manufacturing practices and

The Toyota Production System.

• Shingo is known far more in the West than in Japan, as a result of his meeting Norman Bodek, an

American entrepreneur and founder of Productivity Inc in the USA. In 1981 Bodek had travelled to

Japan to learn about the Toyota Production System, and came across books by Shingo, who as an

external consultant had been teaching Industrial Engineering courses at Toyota since 1955.

• Shingo had written his Study of The Toyota Production System in Japanese and had it translated,

very poorly, into English in 1980. Norman Bodek took as many copies of this book as he could to

the USA and arranged to translate Shingo's other books into English, eventually having his original

study re-translated. Bodek also brought Shingo to lecture in the USA and developed one of the first

Western lean manufacturing consultancy practices with Shingo's support.

• In 1988, Utah State University recognized Dr. Shingo for his lifetime accomplishments and

created the Shingo Prize that recognizes world-class, lean organizations and operational

excellence.

• Shingo is the author of numerous books including: A Study of the Toyota Production System;

Revolution in Manufacturing: The SMED System; Zero Quality Control: Source Inspection and the

Poka-yoke System; The Sayings of Shigeo Shingo: Key Strategies for Plant Improvement; Non-

Stock Production: The Shingo System for Continuous Improvement; and The Shingo Production

Management System: Improving Process Functions.

Dr Shigeo Shingo


• Just-in-time (JIT) is an inventory strategy implemented to improve the return on

investment of a business by reducing in-process inventory and its associated carrying

costs.

• In order to achieve JIT the process must have signals of what is going on elsewhere within

the process. This means that the process is often driven by a series of signals, which can

be Kanban, that tell production processes when to make the next part.

• When implemented correctly, JIT can lead to dramatic improvements in a manufacturing

organization's return on investment, quality, and efficiency.

• Quick communication of the consumption of old stock which triggers new stock to be

ordered is key to JIT and inventory reduction. This saves warehouse space and costs.

Just-in-time ( JIT )


• The philosophy of JIT is simple - inventory is defined to be waste. JIT inventory

systems expose the hidden causes of inventory keeping and are therefore not a simple

solution a company can adopt; there is a whole new way of working the company must

follow in order to manage its consequences.

• Inventory is seen as incurring costs, or waste, instead of adding and storing value,

contrary to traditional accounting.

• With this way of working, businesses are encouraged to eliminate inventory that does

not compensate for manufacturing process issues, and then to constantly improve those

processes so that less inventory can be kept.

• Secondly, allowing any stock habituates the management to stock keeping.

Management are then tempted to keep stock there to hide problems within the production

system. These problems include backups at work centers, machine reliability, process

variability, lack of flexibility of employees and equipment, and inadequate capacity among

other things.

• In short, the just-in-time inventory system is all about having “ the right material, at the

right time, at the right place, and in the right (exact) amount ”,without the safety net

of inventory.

JIT Philosophy


Steps to JIT


1.Set up time reduction

Cutting down the set up time to be more productive will allow the company to improve their

bottom line to look more efficient and focus time spent on other areas that may need

improvement. This allows the reduction or elimination of the inventory held to cover the

"changeover" time, the tool used here is SMED.

2.Faster flows of goods

Having employees focused on specific areas of the system will allow them to process goods

faster instead of having them vulnerable to fatigue from doing too many jobs at once and

simplifies the tasks at hand. Small or individual piece lot sizes reduce lot delay inventories

which simplifies inventory flow and its management.

3.Multi skill employee utilization

Having employees trained to work on different parts of the inventory cycle system will allow

companies to use workers in situations where they are needed when there is a shortage of

workers and a high demand for a particular product.

JIT – Key Benefits


4.Better consistency of scheduling and consistency of employee work hours

If there is no demand for a product at the time, workers don’t have to be working. This can

save the company money by not having to pay workers for a job not completed or could have

them focus on other jobs around the warehouse that would not necessarily be done on a

normal day.

5.Increased emphasis on supplier relationships

No company wants a break in their inventory system that would create a shortage of supplies

while not having inventory sit on shelves. Having a trusting supplier relationship means that

you can rely on goods being there when you need them in order to satisfy the company and

keep the company name in good standing with the public.

6.Supplies continue around the clock keeping people productive and businesses

focused on turnover.

Having management focused on meeting deadlines will make employees work hard to meet

the company goals to see benefits in terms of job satisfaction, promotion or even higher pay.

JIT – Key Benefits


• IBM - Continuous Flow Manufacturing

• HP - Stockless Production

- Repetitive Manufacturing System

• GE - Management by Sight

• Motorola - Short Cycle Manufacturing

• Japanese - The Toyota System

• Boeing - Lean Manufacturing

JIT Synonyms


• Management philosophy

• Pull system though the plant

WHAT IT IS

• Employee participation

• Industrial engineering/basics

• Continuing improvement

• Total quality control

• Small lot sizes

WHAT IT REQUIRES

• Attacks waste

• Exposes problems and bottlenecks

• Achieves streamlined production

WHAT IT DOES

• Stable environment

WHAT IT ASSUMES

JIT Manufacturing


JIT - Capacity Utilization

10 20 30 40 50 60 70 80 90 100

30

10

20

% Capacity

Utilization

60

Production Lead Times (days)

40

50 Traditional

Manufacturing

JIT

Manufacturing


JIT Manufacturing

Quality

Problems Material

Shortages

Machine

Breakdowns

Workload

Imbalances

Worker

Absenteeism

Out-of-Spec

Materials

Quality

Problems

In-Process

Inventory

We must lower the water level! Visible Production

Problems are Only

5% of the Total!


• Total Productive Maintenance is a new way of looking at maintenance - a reversion to old

ways but on a mass scale.

• TPM is a maintenance process developed for productivity improvement

• In TPM the machine operator performs much, and sometimes all, of the routine

maintenance tasks themselves. This auto maintenance ensures appropriate and effective

efforts are expended since the machine is wholly the domain of one person or team.

• TPM is a critical adjunct to lean manufacturing. If machine uptime is not predictable and if

process capability is not sustained, the process must keep extra stocks to buffer against

this uncertainty and flow through the process will be interrupted.

• One way to think of TPM is "deterioration prevention" and "maintenance reduction", not

fixing machines. For this reason many people refer to TPM as “ Total Productive

Manufacturing " or “ Total Process Management “.

• TPM is a proactive approach that essentially aims to prevent any kind of slack/failures

before occurrence.

• TPM motto is “ zero error, zero work-related accident and zero loss “

Total Productive Maintenance ( TPM )


TPM - Definition

• A company-wide team-based effort to build quality into equipment and to improve

overall equipment effectiveness

Total

• all employees are involved

• it aims to eliminate all accidents, defects and breakdowns

Productive

• actions are performed while production goes on – zero downtime

• troubles for production are minimized – trouble free production

Maintenance

• keep in good condition - include 5S

• repair, clean, lubricate - Prevention

• TPM combines the traditionally American practice of preventive maintenance with

Total Quality Control and Total Employee Involvement, to create a culture where

operators develop ownership of their equipment, and become full partners with

Maintenance, Engineering and Management to assure equipment operates properly

everyday ( 24X7 ).


• TPM is a Japanese idea that can be traced back to 1951 when preventive maintenance was

introduced into Japan from the USA.

• Nippondenso, part of Toyota, was the first company in Japan to introduce plant wide

preventive maintenance in 1960. In preventive maintenance, operators produced goods using

machines and the maintenance group was dedicated to the work of maintaining those

machines. However with the high level of automation of Nippondenso maintenance became a

problem as so many more maintenance personnel were now required. So the management

decided that the routine maintenance of equipment would now be carried out by the operators

themselves (this is autonomous maintenance, one of the features of TPM). The maintenance

group then focused only on 'maintenance' works for upgrades.

• The maintenance group performed equipment modification that would improve its reliability.

These modifications were then made or incorporated into new equipment. The work of the

maintenance group is then to make changes that lead to maintenance prevention. Thus

preventive maintenance along with Maintenance prevention and Maintainability Improvement

were grouped as Productive maintenance. The aim of productive maintenance was to

maximize plant and equipment effectiveness to achieve the optimum life cycle cost of

production equipment.

• Nippondenso of the Toyota group is the first company to obtain the TPM certifications.

TPM - History


TPM - Origin

• Dr. Deming introduced statistical analysis and used the resulting data to control

quality during manufacturing (TQM)

• Some general concepts of TQM did not work well in the maintenance environment

• The need to go further than preventive maintenance was quickly recognized by those

companies who were committed to TQM

• Maintenance became an integral part of TQM in the early 90’s


• TPM has five goals

• TPM identifies the 16 losses (types of waste) and then works systematically to eliminate

them by making improvements (Kaizen). TPM has 8 pillars of activity , each being set to

achieve a “zero” target. These 8 pillars are:

- Autonomous Maintenance,

- Planned Maintenance,

- Focused Improvement ( Equipment and Process )

- Early Management of new equipment,

- Process Quality Maintenance,

- Office TPM,

- Education and Training,

- Safety, Health and Environment.

TPM - Implementation

June 2009 Presented by - Santosh Kasture 34

TPM – 8 Pillars


TPM -1st Pillar - Autonomous Maintenance

• Train the operators to close the gap between them and the maintenance staff, making

it easier for both to work as one team

• Change the equipment so the operator can identify any abnormal conditions and

measure deterioration before it affects the process or leads to a failure

• 7 steps are implemented to progressively increase operators knowledge, participation

and responsibility for their equipment :-

1. Perform initial cleaning and inspection

2. Countermeasures for the causes and effects of dirt and dust

3. Establish cleaning and lubrication standards

4. Conduct general inspection training

5. Carry out equipment inspection checks

6. Workplace management and control

7. Continuous improvement


TPM - 2nd Pillar - Equipment and Process improvement

• Objective: maximize efficiency by eliminating waste and manufacturing losses

Manufacturing losses are categorized into 13 big losses:-

• Equipment losses (6) :-

- Equipment failure / breakdown

- Set up / adjustment

- Minor stopping / idling

- Reduced speed

- Process errors

- Rework / Scrap

• Manpower losses (4) :-

- Cleaning and checking

- Waiting materials

- Waiting instructions

- Waiting quality confirmation

• Material losses (3) :-

- Material yield

- Energy losses

- Consumable material losses


TPM - 2nd Pillar - Equipment and Process improvement

Equipment losses (6) Manpower losses (4) & Material losses (3)


TPM - 3rd Pillar - Planned Maintenance

• Objective:- To establish Preventative and Predictive Maintenance systems for

equipment and tooling in order to achieve natural ( planned/designed ) life

cycle of individual machine elements

• Planned maintenance consists of :-

• Correct operation / procedure

• Correct set-up

• Periodic Cleaning

• Periodic Lubrication

• Retightening / Validation

• Timely feedback and repair of minor defects

• Quality spare parts


TPM - 4th Pillar - Early management of new equipments

• Objective: To establish systems to shorten :-

• new product or equipment development

• start-up, commissioning and stabilization time for quality and efficiency

• New equipment needs to be:-

• Standardized - for operation /spares

• Proper layout

• easy to operate

• easy to clean

• easy to maintain and reliable

• have quick set-up times

• operate at the lowest life cycle cost


TPM - 5th Pillar - Process Quality Management

• Definition: a process for controlling the condition of equipment components that affect

variability in product quality

• Objective: to set and maintain conditions to accomplish zero defects

• Quality has a direct correlation with :-

• material conditions

• equipment precision

• production methods

• process parameters / settings

• workmanship


TPM - 6th Pillar - Office TPM

• Administrative and support departments can be seen as process plants whose

principal tasks are to collect, process, and distribute information

• Process analysis should be applied to streamline information flow


TPM - 7th Pillar - Education and Training

• TPM is a continuous learning process.

• Training process has 2 major components :-

• Soft skills training: how to work as teams, diversity training and

communication skills

• Technical training: upgrading problem-solving and equipment- related skills


TPM - 8th Pillar - Safety, health and environment

• Assuring safety, health and preventing adverse environmental impacts are important

priorities in any TPM effort.


TPM - Principles

• There are 5 basic principles of Total Productive maintenance :-

1. Increase Overall Equipment Effectiveness (OEE)

2. Improve existing planned maintenance systems

3. The operator is the best condition monitor

4. Provide training to upgrade operations and maintenance skills

5. Involve everyone and utilize cross-functional teamwork


TPM - Overall Equipment Effectiveness (OEE)

• OEE figures are determined by combining the availability and performance of your

equipment with the quality of parts made

• OEE measures the efficiency of the machine during its planned loading time. Planned

downtime does not effect the OEE figure.


TPM - Overall Equipment Effectiveness (OEE)

• OEE Calculations :-


• 5S is the name of a workplace organization methodology that uses a list of five Japanese

words which, translated into English, start with the letter S.

• 5S is a philosophy and a way of organizing and managing the workspace and work

flow with the intent to improve efficiency by eliminating waste, improving flow and reducing

process unevenness.

• 5S is a method for organizing a workplace, especially a shared workplace (like a shop floor

or an office space), and keeping it organized.

• The key targets of 5S are eliminating waste, improving flow, workplace morale, safety

and efficiency. It also instills ownership of the process in each employee.

5 S


The 5S's are:-

• Seiri / Sorting :-

Going through all the tools, materials, etc., in the plant and work area and keeping only

essential items. Everything else is stored or discarded.

• Seiton / Straighten or Set in Order :-

Focuses on efficiency. When we translate this to "Straighten or Set in Order", it sounds like

more sorting or sweeping, but the intent is to arrange the tools, equipment and parts in a

manner that promotes work flow. For example, tools and equipment should be kept where

they will be used (i.e. straighten the flow path), and the process should be set in an order

that maximizes efficiency. For every thing there should be place and every thing should be in

its place. (Demarcation and labeling of place.)

• Seiso / Sweeping or Shining or Cleanliness :-

Systematic Cleaning or the need to keep the workplace clean as well as neat. At the end of

each shift, the work area is cleaned up and everything is restored to its place. This makes it

easy to know what goes where and have confidence that everything is where it should be.

The key point is that maintaining cleanliness should be part of the daily work - not an

occasional activity initiated when things get too messy.

5 S


• Seiketsu / Standardizing / Systemization :-

Standardized work practices or operating in a consistent and standardized fashion. Everyone

knows exactly what his or her responsibilities are to keep above 3S's.

• Shitsuke / Sustaining the discipline / Self discipline :-

Refers to maintaining and reviewing standards. Once the previous 4S's have been

established, they become the new way to operate. Maintain the focus on this new way of

operating, and do not allow a gradual decline back to the old ways of operating.

• A sixth S - "Safety" is sometimes added. The key here is following 5S correctly will result in

a safe work environment.

5 S


• Business process reengineering (BPR) is, in computer science and management, an

approach aiming at improvements by means of elevating efficiency and effectiveness of the

business process that exist within and across organizations.

• The key to BPR is for organizations to look at their business processes from a "clean slate"

perspective and determine how they can best construct these processes to improve how they

conduct business.

• Business process reengineering is also known as BPR, Business Process Redesign,

Business Transformation, or Business Process Change Management.

• It is the radical redesign of an organization's processes, especially its business processes.

Rather than organizing a firm into functional specialties (like production, accounting,

marketing, etc.) and considering the tasks that each function performs; complete processes

from materials acquisition, to production, to marketing and distribution should be considered.

• The main proponents of re-engineering were Michael Hammer and James A. Champy. In a

series of books including Reengineering the Corporation, Reengineering Management and

The Agenda, they argue that far too much time is wasted passing-on tasks from one

department to another. They claim that it is far more efficient to appoint a team who are

responsible for all the tasks in the process. In The Agenda they extend the argument to

include suppliers, distributors, and other business partners.

Business Process Reengineering ( BPR )



http://upload.wikimedia.org/wikipedia/commons/a/a2/Business_Process_Reengineering_Cycle.svg


• Business process reengineering (BPR) began as a private sector technique to help

organizations fundamentally rethink how they do their work in order to dramatically improve

customer service, cut operational costs, and become world-class competitors.

• Business process reengineering is one approach for redesigning the way work is done to better

support the organization's mission and reduce costs.

• Reengineering starts with a high-level assessment of the organization's mission, strategic

goals, and customer needs. Basic questions are asked, such as "Does our mission need to be

redefined? Are our strategic goals aligned with our mission? Who are our customers?"

• Within the framework of this basic assessment of mission and goals, reengineering focuses on

the organization's business processes--the steps and procedures that govern how resources are

used to create products and services that meet the needs of particular customers or markets.

• Reengineering identifies, analyzes, and redesigns an organization's core business processes

with the aim of achieving dramatic improvements in critical performance measures, such as cost,

quality, service, and speed.

• Reengineering recognizes that an organization's business processes are usually fragmented

into sub processes and tasks that are carried out by several specialized functional areas within

the organization. Often, no one is responsible for the overall performance of the entire process.

• For that reason, reengineering focuses on redesigning the process as a whole in order to

achieve the greatest possible benefits to the organization and their customers.


http://en.wikipedia.org/wiki/File:Reengineering_guidence.jpg


1.Envision new processes

• Secure management support

• Identify reengineering opportunities

• Identify enabling technologies

• Align with corporate strategy

2.Initiating change

• Set up reengineering team

• Outline performance goals

3.Process diagnosis

• Describe existing processes

• Uncover pathologies in existing processes

BPR - Implementation


4.Process redesign

• Develop alternative process scenarios

• Develop new process design

• Design HR architecture

• Select IT platform

• Develop overall blueprint and gather feedback

5.Reconstruction

• Develop/install IT solution

• Establish process changes

6.Process monitoring

• Performance measurement, including time, quality, cost.

• Link to continuous improvement

BPR - Implementation


• Total Quality Management (TQM) is a business management strategy aimed at embedding

awareness of quality in all organizational processes.

• TQM has been widely used in manufacturing, education, hospitals, call centers,

government, and service industries, as well as NASA space and science programs[1].

• When used together as a phrase, the three words in this expression have the following

meanings:

Total : Involving the entire organization, supply chain, and/or product life cycle

Quality : With its usual definitions, with all its complexities

Management : The system of managing with steps like Plan, Organize, Control, Lead, Staff,

provisioning and organizing

• As defined by the International Organization for Standardization (ISO) :

"TQM is a management approach for an organization, centered on quality, based on the

participation of all its members and aiming at long-term success through customer

satisfaction, and benefits to all members of the organization and to society."

Total Quality Management ( TQM )


• In Japan, TQM comprises four process steps, namely:

1.Kaizen – Focuses on "Continuous Process Improvement", to make processes visible,

repeatable and measurable.

2.Atarimae Hinshitsu – The idea that "things will work as they are supposed to" (for

example, a pen will write).

3.Kansei – Examining the way the user applies the product leads to improvement in the

product itself.

4.Miryokuteki Hinshitsu – The idea that "things should have an aesthetic quality" (for

example, a pen will write in a way that is pleasing to the writer)

• TQM requires that the company maintain this quality standard in all aspects of its

business. This requires ensuring that things are done right the first time and that defects

and waste are eliminated from operations.

Total Quality Management ( TQM )


1) Statistical Measurement :

We measure defect rates in all the Processes through an expanding

statistical concept, and we use ‘ s ’in measuring process capability.

2) Business Strategy :

We gain a competitive edges in Quality, Cost, Customer Satisfaction.

3) Philosophy :

We should work smarter, not harder

Six Sigma Six Sigma - Introduction

What is Six sigma ???


Z

6

5

4

3

2

PPM

3.4

233

6,210

66,807

308,537

Process Defect Capability Opportunity

Sweet Fruit Design for Manufacturability

Bulk of Fruit Process Characterization and Optimization

Lower Hanging Fruit Seven Basic Tools

Ground Fruit Logic and Intuition

Z Level Harvest

5 s Wall, Improve Designs

3 s Wall, Work with suppliers

4 s Wall, Improve Processes

Six Sigma - Introduction


1s 1s

2s 2s

3s 3s

4s 4s

5s 5s

6s 6s

68.3 %

95.45 %

99.73 %

99.9936 %

99.99 99 4 %

99.99 99 99 8 %

The Percentage

Acceptable Area under

the Curve Increases as

the Z Value ( the Number

of Standard Deviations

s) Increases .

The Area Under the Curve represents the Acceptance or Yield,

whereas the Area outside the Curve represents the Rejection

x (Mean)

USL LSL

Six Sigma - Introduction


Six Sigma - History

• The U.S Defense system developed a system known as SQC to manage the

complex weapon system & to handle the distributed defense contractors.

• SQC:- is a set of tools that originated in the Military Standards and the basis of

SQC process was 3 sigma limits which yields a rate of 2700 defects per million.

• After World war 2 US companies returned to their Original strategy while the

defeated countries were rebuilding their Industries. General Mc Arthur who was

the Governor general of JAPAN at that time Imported some of the U.S. Pioneers of

SQC to help train their counterparts in JAPAN.

• By 1970~ 1980 Japanese producers were renowned for their Quality & durability.

• U.S Companies slowly realized that to attain the desired Quality level two things

are necessary

• One should be able to measure the quality level I.e it should be Quantifiable &

Measurable.

• Motorola pioneered the Use of Six Sigma , Bill Smith VP &Senior QA

Manager of Motorola is regarded as the Father of Six Sigma.


Theme

Selection

(Define)

Measurement

Analysis

Improvement

Control

• Define problem

• Define range

• Measuring capability

of CTQ

• Clearfy measuring method

• Clearfy factors

• Find vital few

• Optimize process

• Control vital few

• Set up control system

Capability OK ?

Redesign ?

Theme Selection

Measurement

Analysis

Improvement

Control

Redesign

N

N

Y

Y

N

Y

Capability OK ?

Objective

Six Sigma – D-M-A-I-C


The 3 Sigma Company

• Spends 15-25% of sales dollars on cost of failure • Produces 66,807 defects per million opportunities • Relies on inspection to find defects • Believes high quality is expensive • Benchmarks themselves against their competition • Believes 99% is good enough • Defines CTQs internally

The 6 Sigma Company

• Spends 5% of sales dollars on cost of failure • Produces 3.4 defects per million opportunities • Relies on capable processes that don’t produce defects • Knows that the high quality producer is the low cost producer • Benchmarks themselves against the best in the world • Believes 99% is Unacceptable • Defines CTQs from customers

3 Six Sigma Vs 6 Sigma


` Quality

Control

Total Quality

Control

Total Quality

Management

Six Sigma

“ Production line focussed Improvement “

--- Lead by Japanese Companies

“ Six Sigma Management” ---

Lead by American Companies

Total Optimization

of R&D,

Production , Sales

and Service is

necessary

Improve Product

Quality

• Small group of sections

• Toward total Solution

Six Sigma & Quality management


Sample

Total Study Group Small Group taken

from Population

The facts derived

from the sample

The Group of 100

people who

possesses a Fan Age and Number of

decision makers

purchasing a Fan

Six Sigma - Definitions


Data Point : The single entity in the sample.

Data : The trend of data points in a sample I.e the facts derived from the sample.

Information : The data presented in a form which conveys some result, Conclusion

Sample : A Sample is a portion of the whole collection of Items (population)

Population : The population consists of the set of all measurements in which the

investigation is interested. It is also called Universe.

Statistic : A numerical value such as standard deviation or mean , that characterizes the

sample.

Statistics : An application theory & method to reach appropriate & wise decisions in

unknown circumstances.

Population

Sample

Six Sigma - Definitions


Six Sigma – Types Of Data

Types of Data

A.) Continuos Data : - The Data which can be measured and has unit

associated with it is called continuous data. It can be in fractions.

E.g Length of a Playground, Thickness of the paint coating, ect.

B) Attribute Data :- The data which can has only two options Yes/No,

True/False is called Attribute data.

E.g Quality of Food ( OK/NG),

C) Discreet Data : - The data which can be measured only in whole

number and has no units associated with it is called Discreet data. It is the

Count of the Number of Attributes E.g number of Heart Beats in one

minute, Number of Type A defects.


Characteristics of Normal Curve

Normal Distribution Curve is known as Density

Curve meaning the area under the curve is

equal to one.

A.) The Normal curve is a bell shaped curve and it

has single peak (Mode ) at the center.

B) The mean & median of the distribution are equal

and are located at the peak.

C) The Normal distribution curve is symmetrical

about the mean.

D) The curve is asymptotic I.e the curve gets close

to X-Axis but it never touches it

Standard Normal curve is one having Mean=0,

and standard deviation =1.

x USL

Normal distribution curve


Measures of Central Tendency of Data

A.) Mean : The mean of a set of Observations is their average. It is equal to the sum of all

Observations divided by the number of Observations in the set. E.g Consider the data set

given below

1 , 2 , 3 , 4 , 5 ; Mean = 1+ 2 + 3 + 4 + 5 = 15/5 = 3

Mean of Sample, X = SXi = x1 +x2 +x3 +x4+……..xn

b.) Median : The Median term of the given data is given by

Median = term, where n is the number of

Observations in the given data(arranged in increasing order).

I=1

n

n

n + 1 2

th

E.g 3, 5 , 1 , 8 , 2 , 7 , 1 , 4 . No. of Terms = 8, Arrange data in Increasing Order = 1 , 1 , 2 , 3 , 4 , 5 , 7, 8

Median Term = 4.5th Term = 4th Term + 0.5 ( 5th - 4th Term ) = 3 + 0.5 ( 4- 3) = 3.5


Measures of Central Tendency of Data

C) Mode : The value Occurring maximum number of times

E.g 3, 4 , 3, 6, 5, 3, 7, 4 , Mode = 3

E.g Calculate the Median of the Following data :

2, 4, 6, 8, 12, 15, 10

Sol. Arrange the data in Increasing Order

2, 4, 6 , 8 , 10 , 12 , 15

No.of Observations = (7 + 1 ) / 2 = 4th Term = 8


Measures of Spread/Dispersion of Data

a.) Range : The Difference between Maximum & Minimum value.

b) Standard Deviation ( s ) : It gives tells us about the variation in data .

c ) Variance ( s2) : It is defined as the square of the standard deviation to

account for the total variation observed in the data.

E.g : The Process Specification = 10 +- 2

Sol. USL = 12 , LSL =8 Range = USL - LSL = 12 - 8 = 4

Consider the data set 3, 2, 5, 1, 4

Mean = 3

Standard Deviation ( s ) = (10/4 )1/2 = 1. 5

Variation ( s2 ) = 2.25

Mean = 3

Data Variation Variation 2

1 -2 4

2 -1 1

3 0 0

4 1 1

5 2 4

0 10


Measures of Spread/Dispersion of Data

d) Quartile : It divides the total range into 4 equal parts (quarters ) and tells that in

which Quartile a particular data point is lying.

n + 1 4

th Q1 = , Q2 = 2 * n + 1

4

th , Q3 = 3 * n + 1

4

th

where Q1,Q2 and Q3 are 1st 2nd & 3rd Quartiles resp. Interquartile Range ( IQR ) = Q3 -

Q1, contains 50 % of the Total data points

Upper Limit Uu = Q3 + 1.5 IQR

Lower Limit LL = Q1 - 1.5 IQR

Eg. Calculate the First , second & Third Quartile for the data given below. Also calculate the IQR &

Upper & Lower Limits. 10, 17, 14, 23, 18 , 11 , 9, 13

Sol . Arrange data in Increasing order = 9 , 10 , 11, 13, 14 , 17 , 18 , 23

Q1 = [ ( 8 +1) / 4 ] th = 2.25th Term = 2nd Term + 0.25 ( 3rd Term - 2nd Term ) = 10 + 0.25( 1) = 10.25

Q2= 2* 2.25th Term = 4.5th Term = 13 + 0.5 (14 - 13 ) = 13.5, Q3= 3* 2.25th Term = 6.75th Term = 17.75

IQR = Q3 -Q1 = 17.75 - 10.25 = 7.50 ; Uu = 17.75 + 1.5( 7.50 ) = 29 ; UL = 10.25 - 1.5 (7.50) = -1


Six Sigma is a tool that can be applied to all business systems, Design,

Manufacturing, Sales & Service

R&D

Mfg

SVC

Guarantee for design completion

• Selecting CTQ to meet customer requirement

• Deciding reasonable Tolerance

• Guarantee CTQ’s through capability analysis

Quality Assurance in Manufacturing Stages

• Improve serious Problems

• Real Time Monitoring

• CTQ control system

Maximizing Sales & Service

• Improve cycle time & accuracy

• Cost Improvement

Six Sigma – Applications

Think Business Growth….Think Fast Track>>

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