Basic awareness of Lean Manufacturing or Toyota Production System. Most profitable companies use this Business system to sustain effective economic performance such as Toyota & GE. Author is a Certified Lean Professional.

1. A STRATEGY FOR
PERFORMANCE
EXCELLENCE
MADE BY : ZEESHAN SYED - CPMP NED UNIVERSITY / PIQC
PAKISTAN CABLES LTD

2. DEFINITION OF QUALITY
“QUALITY IS THE ABILITY OF SET OF
INHERENT CHARACTERISTICS OF A
PRODUCT, SYSTEM OR PROCESS TO
FULFILL REQUIREMENTS OF
CUSTOMERS AND OTHER
INTERESTED PARTIES” ISO 9000:2000

3. OLD VS NEW CONCEPT OF QUALITY
OLD CONCEPT OF QUALITY NEW CONCEPT OF QUALITY
Emphasis on result. Emphasis on process.
Specification Driven. Customer Driven.
Accept Industry Average. Continuous Improvement.
Throwing people at problem Using Statistical Process
Control (SPC) to solve the
problem
Reactive culture. Preventive Culture.
• Quality Vs Productivity. Quality & Productivity.
Controlling operator by Quality Control of Quality by operator.

4. WHAT IS MANAGEMENT
 Management is the process of achieving organizational objectives
through the efficient use of organizational resources.
 Management is the process of taking work from people in
structured situations/ organizations.
 Management is the process of creating conditions in
organizations which allow people to achieve their full potential
while they engage in economic activity.
 An effective management system is the structure that defines an
organizations goals, policies and procedures and the processes
by which they are maintained and improved. It requires
documented processes, clear cut responsibilities, on going
training, internal checks for compliance, a way to correct non-
compliances, management reviews and continued improvement.
The critical aspect of a management system is that all elements
work cohesively towards the stated objectives.

5. CONVENTIONAL MANAGEMENT PRINCIPLES
 Profit First.
 Complex organizational structure.
 Labor Intensive.
 Low literacy rate.
 Top down approach.
 Specialized Job classifications.
 Individual work.
 Long term planning
 Homogenous nation.

6. JAPANAESE MANAGEMENT PRINCIPLES
 Customer First.
 Simple organizational structure.
 Process Intensive.
 High literacy rate.
 Consensus based.
 Multi skill development through rotation.
 Team work
 Long term planning
 Homogenous nation.

7. WORLD CLASS BENCHMARKS
Quality improvement – 50% per year.
(helped by new product introductions)
•Productivity improvement – 2% per
month
•Over 10% of total process time is
value-adding activities – compared to 5% for
most companies
•Continuous improvement culture
•Total employee involvement, with
sharing of authority, accountability, and
reward

9. What Does Kaizen Mean?
KAI ZEN
To modify, to change + Think, make good,
make better
= KAIZEN
Make it easier by studying it, and
making the improvement through
elimination of waste.

10. KAIZEN....?
 Kaizen means ”small & continuos
improvement".
 Kaizen strategy calls for never-ending efforts
for improvement.
 Involving everyone in the organization -
managers and workers alike.

11. CONTINOUS IMPROVEMENT
 Continuous Improvement means ongoing
improvement involving everyone, including
both management and workers.
 This philosophy assume that our way of life
- be it our working life or our home life
deserves to be constantly improved.

12. OBJECTIVES OF CONTINOUS IMPROVEMENT
 To promote job involvement.
 To improve communication.
 To enhance awareness of quality.
 To improve level of productivity - Saving in material,
time, energy.
 To reduce error / mistakes (Reworks).
 To develop personnel & leadership skills - by
working as a team.
 To improve safety.
 To promote preventive culture.

13. JAPANAESE MANAGEMENT PRINCIPLES – KAIZEN
STRATEGY
 “Aim is to start omitting less significant portions of
work.”
 It is a positive , constructive way of omission that
allocates surplus time and energy to important tasks
that can never be neglected.
 Kaizen is the Lifeblood of Lean Production System.
 In Japanese system , all jobs are being continually
improved..
 With standardised work , there is a Base line from
which to identify problems more easily . It is the first
step for Kaizen.

14. JAPANAESE MANAGEMENT PRINCIPLES - KAIZEN
 KAI – Change.
 ZEN - Better.
 “ Change for betterment / improvement.”
 Continuous search for Better way.
 Step by step - small and concentrated steps.
 Process oriented thinking.
 Huge Finances are not required for these changes.
 Ask “ Why “ five times and seek root causes.
 Improvement is one time activity – Kaizen is
Continuous.
 Participation of all concerned.

15. Continuous Improvement
Is the continuous
elimination of waste

16. JAPANAESE MANAGEMENT PRINCIPLES – KAIZEN AS
DEMING’S CYCLE
 P-D-C-A CYCLE
PLAN - Analysis
DO – Try Counter measures
CHECK – Confirm results
ACT - Standardization

17. JAPANAESE MANAGEMENT PRINCIPLES – T Q M
 “Total Quality Management is the integration
of all functions and Processes within an
organization in order to achieve continuous
improvement of quality of goods & services.”
 It can also be summarized as the continual
meeting of agreed customer requirements at
lowest cost by realizing the potential of all
employees.

18. MAJOR COMPONENTS OF KAIZEN
Kaizen and Management
Management has two major components:
o Maintenance.
o Improvement.
 The objective of the maintenance function is
to maintain current technological, managerial,
and operating standards.
 The improvement function is aimed at
improving current standards.

19. MAINTENANCE
 Under the Maintenance function, the
management must first establish
policies, rules, directives and standard
operating procedures (SOPs) and then
work towards ensuring that everybody
follows SOP.
 The latter is achieved through a
combination of discipline and human
resource development measures.

20. IMPROVEMENT
 Under the Improvement function, management
works continuously towards revising the current
standards, once they have been mastered, and
establishing higher ones.
 Improvement can be broken down between
innovation and Kaizen. Innovation involves a
drastic improvement in the existing process and
requires large investments.
 Kaizen signifies small improvements as a result of
coordinated continuous efforts by all employees .

22. STARTING POINT
• Not a single day should go by without some kind of improvement
being made somewhere in the company.
• Customer-driven strategy for improvement - any management activity
should eventually lead to increased customer satisfaction.
• Quality first, not profit first - an enterprise can prosper only if
customers who purchase its products or services are satisfied.
• Problem solving is seen as cross-functional systemic and
collaborative approach .
• Emphasis on process - establishing a way of thinking oriented at
improving processes, and a management system that supports and
acknowledges people's process-oriented efforts for improvement.

23. MINDSET & CULTURE
• Customer orientation
• Quality control (QC) circles
• Suggestion system
• Discipline in the workplace
• Small-group activities
• Cooperative labor-management relations
• Total quality control (TQC)
• Quality improvement

24. PROCESS ORIENTED THINKING VS RESULT ORIENTED THINKING
 Kaizen concentrates at improving the process
rather than at achieving certain results.
 Such managerial attitudes and process
thinking make a major difference in how an
organization masters change and achieves
improvements.

25. The Nine types of waste
• Overproduction
9
Wastes
• Delays (waiting time)
• Transportation
• Process
• Inventories
• Motions
• Defective products
• Untapped resources
• Misused resources

26. Overproduction
9 To produce more than is required *
Wastes To produce before required *
*Required by external and internal customers

27. Elimination of Wastes and Continuous Improvement
The Secret:
• Be Systematic
• Work with a versatile team
• Measure, evaluate
• Find the 5 Whys
• Follow up
• Standardize, make uniform
• Simplify
• Combine
• Prevent
• Make waste ugly

28. Visual Control & the Workstation
To Sort To Straighten
Eliminate what’s not Ensure space for
each thing, and a
absolutely necessary thing for each space.
No more searching.
The 5 S To Sustain
Maintain
continuous effort.
This is a way of To Sweep
To Sanitize
life. Maintain a clean and
Improvement of the orderly space to make
workstation. Be problems easily
organized to reduce identifiable. Eliminate
clutter. rejects and scrap..

29. Visual Control & the Workstation
Ergonomics
•Adapt the workstation to the
employee
- more security
- more comfort
•Reduce waste
- excessive fatigue
- useless efforts and movement
- less physical constraints

30. SUGGESTION SYSTEM
 The Suggestion System aims at involving
employees in Kaizen.
 The number of worker's suggestions is an
important criteria in reviewing performance of the
supervisor and the managers.
 The Japanese management encourages employees
to generate a great number of suggestions and
implement these suggestions, often incorporating
them into the overall Kaizen strategy.
 Management also gives due recognition to
employee's efforts for improvement

31. FORMULA FOR CHANGE
Change = V x D x A
• V = Vision
• D = Dissatisfaction
• A = Action (quick first steps)
The degree of change is the If any factor is zero, change
result of multiplying all
factors. won’t happen

33. JAPANAESE MANAGEMENT PRINCIPLES – 5 S
 These are 5 basic steps involved for an efficient
work place.
 It gives Safety , Neatness , Lesser Fatigue ,
Faster identification & improves quality.
 The 5 Japanese words are
SEIRI,SEITON,SEISOU,SEIKETSU& SHUKAN.
 Shifting , Sorting , Sweeping , Standardizing &
Supreme Attitude.

34. SEIRI
 Sort
(Seiri)
 Start by sorting the useful from the
unnecessary. The only things that
should remain in a work area are the
parts, tools, & instructions needed to do
the job.

35. SEITON
 Set in order (Seiton)
 Everything has a place; everything is in
its place.
 This is also a good time for the team to
create a Visual Scoreboard, jidoka
lights, floor paint, kanbans, and other
visual controls .

36. SEISO
 Sweep & Shine (Seiso)
 Do an initial spring cleaning.
Maybe painting, scouring, sweeping,
washing, rinsing, scrubbing, and
whatever else is needed to make your
work place shine.

37. SEIKETSU
 Standardize (Seiketsu)
 In the Standardize phase of Lean 5 S, routine
cleaning becomes a way of life.
 Preventative maintenance is routinely
performed, perhaps with planning and
scheduling and some responsibilities done by
central maintenance department, and as
much routine maintenance as possible
performed by the people that know that work
center better than anyone else.

38. SHITSUKE
 Sustain
(Shitsuke)
 Shitsuke is when five S becomes a routine
way of life. Root causes are routinely
identified and dealt with - both supervisors
and the workers should be constatntly
involved so as to appreciate the benefits of
Five S and Lean methods.

39. THE SIXTH S
 Safety ( & Smile ).
 Some companies have taken to calling
their program a 6S program - with the
inclusion of Safety issues.

40. WHY 5S ?
 One important purpose and benefit of 5 or
6S is to make your work area clean and in
order to unhide potential problems. In an
unclean workplace, it is hard to even notice
things like "When did that machine start
making that noise?" or "When did that start
leaking oil?"
 Another purpose and benefit to reduce the
amount of time wasted looking for misplaced
tools, and materials, and supplies.

41. 5 S AS STARTING POINT
 Five or Six S housekeeping is a starting point
for every successful Lean process
improvement initiative.
 Most Lean initiatives start out with 5S training
as one of the earliest initiatives, and there is a
flurry of enthusiastic cleaning and organizing.
The real test, however, is how well the new
ways "stick" over time. The success of 5s
program is often an excellent predictor of the
probable success of greater lean
manufacturing initiative.

43. WHAT IS ISO 9000
 The ISO 9000 series is a set of five individual
but related International Standard of Quality
Management and Quality Assurance.
 Technical committee ISO/TC176 is
responsible for developing & updating ISO
9000 standard.
 National delegation of 52 countries participate
in its work with another 15 present as
observers .
 Objective of ISO 9000 is aimed primarily at
achieving customer satisfaction by preventing
non-conformity at all stages.

44. DIFFERENT ISO STANDARDS
 ISO 9000 - Quality Management and Assurance
Standards - Guidelines for selection and use.
 ISO 9001 - Model for Quality Assurance in Design,
Development, Production, Installation and Servicing.
 ISO 9002 - Model for Quality Assurance in Production,
Installation and Servicing.
 ISO 9003 - Model for Quality Assurance in Final
Inspection and Testing.
 ISO 9004 - Quality Management and Quality System
Elements- Guidelines.

45. PRINCIPLES OF 1SO 9000
 Get organized.
 Have written procedure.
 Control key documents.
 Keep records.
 Carry out regular checks.
 Identify faults, correct them and prevent them
from happening again.
 Communicate well.

46. SYSTEM DOCUMENTATION PYRAMID
Level 1
QualityDefines Approach and
Manual Responsibility
Procedures Level 2
(operations) Defines Who, What, When
Work / Job Instructions Level 3
(functional, departmental) Answers How
Other Documentation Level 4
(forms & records, process sheets, Results: Shows
visual aids, posted instructions, test & that the system
inspection sheets) is operating

47. THE HEART OF SIX SIGMA
• Six Sigma Quality is achievable and desirable!
• Quality does not happen by chance or automatically
• The Customer defines quality….. VOC
• Act on fact data…. use of Statistics
• Sustained Quality is the result of building robust Processes and then
following them religiously
• Processes convert resources inputs (X’s) into desired outputs (Y’s):
Y::f(x1,x2,..xn)
• Y can be improved by improving upon the vital x’s (Y can be market share,
product, quality, production efficiency et cetera)
Measurement is the key to beginning and to making progress…. ∑ Values

49. 17 LAWS OF TEAM WORK
 The Law of the Catalyst: Winning Teams Have
Players Who Make Things Happen
 The Law of the Vision ("Compass"): Vision Gives
Team Members Direction and Confidence
 The Law of the Bad Apple: Rotten Attitudes Ruin
a Team
 The Law of Countability: Teammates Must Be
Able to Count on Each Other When It Counts
 The Law of the Price Tag: The Team Fails to
Reach Its Potential When It Fails to Pay the Price
 The Law of the Scoreboard: The Team Can Make
Adjustments When It Knows Where It Stands

50. 17 LAWS OF TEAM WORK
o The Law of Significance: One Is Too Small a
Number to Achieve Greatness
o The Law of the Big Picture: The Goal is More
Important Than the Role
o The Law of the Niche: All Players Have a Place
Where They Add the Most Value
o The Law of the Great Challenge ("Mount
Everest"): As the Challenge Escalates, the Need
for Teamwork Elevates
o The Law of the Chain: The Strength of the Team
Is Impacted by Its Weakest Link

51. 17 LAWS OF TEAM WORK
 The Law of the Bench: Great Teams Have Great
Depth
 The Law of Identity: Shared Values Define the
Team
 The Law of Communication: Interaction Fuels
Action
 The Law of the Edge: The Difference Between
Two Equally Talented Teams Is Leadership
 The Law of High Morale: When You're Winning,
Nothing Hurts
 The Law of Dividends: Investing in the Team
Compounds Over Time

52. WINNING TEAMS MUST..
• Have a great many winners in them; most of the players
poised and confident, and although they may well be
'stars' in their own right they allow others to shine in
order to a 'star team' together
• Often include winning groups and combinations which
work together so well they seem to have a six sense,
whereas in fact they have merely learned to cooperate
to make each other winners and to make a team a
winning team
• Have the winning habit and they go into every game
expecting to win

53. WINNING TEAMS MUST..
• Develop a synergy that comes from winning and
which increases not by simple progression but
exponentially: 1x1=11
• Develop both mental and physical energy to
withstand adversity
• Create a winning atmosphere - everyone
surrounding them emerges as a winner
• Make winning contagious so that new comers soon
acquire the team's magic

56. LEAN MANUFACTURING
 Lean is about doing more with less: less time,
inventory, space, labor, and money.
 Lean Manufacturing (also known as the Toyota
Production System) is, in its most basic form, the
systematic elimination of waste - overproduction,
waiting, transportation, inventory, motion, over-
processing, defective units - and the
implementation of the concepts of continuous flow
and customer pull

57. AREAS OF LEAN PRODUCTION
 Five areas drive lean manufacturing/production:
o COST
o QUALITY
o DELIVERY
o SAFETY
o MORALE
 Just as mass production is recognized as the
production system of the 20th century, Lean
production is viewed as the production system of
the 21st century.

59. BENEFITS OF LEAN
 Waste reduction by 80%
 Production cost reduction by 50%
 Manufacturing cycle times decreased by 50%
 Labor reduction by 50% while maintaining or
increasing throughput
 Inventory reduction by 80% while increasing customer
service levels
 Capacity in current facilities increase by 50%
 Higher quality
 Higher profits
 Higher system flexibility in reacting to changes in
requirements improved

61. BASIC ELEMENTS
The basic elements are :
 Waste elimination.
 Continuous one piece workflow.
 Customer pull.
When these elements are focused in the
areas of cost, quality and delivery, this
forms the basis for a lean production
system.

62. OVER VIEW OF SYSTEM
• Non-value added activities or waste are eliminated through
continuous improvement efforts
• Focus on continuous improvement of processes - rather
than results - of the entire value chain
• The lean manufacturing mindset: concept, way of thinking -
not techniques; culture - not the latest management tool
• Continuous product flow is achieved through physical
rearrangement and system structure & control mechanisms
• Single-piece flow / small lot production: achieved through
equipment set up time reduction; attention to machine
maintenance; and orderly, clean work place
• Pull reduction / Just-in-time inventory control

64. 7 WASTES TO BE ELIMINATED
• Reduced Setup Cost and Times (for semi-versatile
machinery ) - from months to hours thus making small-lot
production economically viable; achieved by organizing
procedures, using carts, and training workers to do their
own setups,
• Small-Lot Production - allowing higher flexibility and pull
production (or just-in-time manufacturing)
• Employee Involvement and Empowerment - organizing
workers by forming teams and giving them training and
responsibility to do many specialized tasks, for
housekeeping, quality inspection, minor equipment repair
and rework; allowing also them time to meet to discuss
problems and find ways to improve the process

65. 7 WASTES.....
• Quality at the Source - total quality management (TQM) ;
assigning workers, not inspectors, the responsibility to
discover a defect and to fix it.
• Pull Production, or Just-In-Time (JIT) - quantity of work
performed at each stage of the process is dictated solely
by the demand for materials from the immediate next
stage; thus reducing waste and lead times, and
eliminating inventory holding costs
• Continuous Equipment Maintenance - as pull production
reduces inventories, equipment breakdowns must also be
reduced; thus empowered operators are assigned primary
Maintenance

66. 7 WASTES....
• Multi- Skilled Workforce - as employees are
empowered to do many jobs, they must be
provided with adequate training
• Supplier Involvement - the manufacturer treats its
supplier as a long-term partners; they often must
be trained in ways to reduce setup times,
inventories, defects, machine breakdowns, etc. in
order to enable them to take responsibility for
delivering the best possible parts/services to the
manufacturer in a timely manner.

70. JUST .IN .TIME
 In Kaizen, JIT is a is a collection of
concepts and techniques for improving
productivity.
 JIT is a process aimed at increasing
value-added and eliminating waste by
providing the environment to perfect
and simplify the processes.

71. WHAT IS PRODUCTIVITY
 “Productivity is the efficient & effective
utilization of the available resources. ”
Japan Productivity Center for Socio-Economic
Development
 How to Measure Productivity
Productivity = OUTPUTS / INPUTS

72. JIT COMPONENTS
 Production Leveling
 Pull System
 Kamban (label or signboard) system
 Good Housekeeping
 Small Lot Production
 Setup Time Reduction
 Total Preventive Maintenance (TPM)
 Total Quality Control (TQC)
 JIT Purchasing
 Line Balancing
 Flexible Manufacturing
 Small-group Activities (SGA)

75. VALUE CHAIN
 Value chain is a high-level model of
how businesses receive raw materials
as input, add value to the raw materials
through various processes, and sell
finished products to customers.
 A critical pre-requisite for success in
digital economy is the implementation
of an integrated value chain that
extends across - and beyond - the
enterprise.

76. LEAN ENTERPRISE
 The 'Lean Enterprise' encompasses the entire
production system, beginning with the customer,
and includes the product sales outlet, the final
assembler, product design, and all tiers of the
supply chain (to include raw material mining and
processing).
 Any truly 'lean' system is highly dependent on the
demands of its customers and the reliability of its
suppliers.
 No implementation of lean manufacturing can
reach its full potential without including the entire
'enterprise' in its planning.

77. STATE OF ART SUPPLY CHAIN
 The entire chain is a single, integrated equity
 Suppliers contracts based on mutual benefits rather
than straight cost. Supply chains are not about buying
something a bit cheaper, these are strategic decisions
 The cost, quality, and delivery requirements of the
manufacturing customer are objectives shared by
every company in the chain
 Inventory is the last resort for resolving supply-and-
demand imbalances between the tiers
 Sharing of benefits achieved through collaboration
 Measured by lead-time on class-A purchased materials

79. SERVICE - PROFIT CHAIN
 The service-profit chain is a powerful
phenomenon that stresses the importance of
people - both employees and customers - and
how linking them can leverage corporate
performance.
 The service-profit chain is an equation that
establishes the relationship between corporate
policies, employee satisfaction, value creation,
customer loyalty, and profitability

80. ELEMENTS
 A seamless integration of all components
in the service-profit chain - employee
satisfaction, value creation, customer
satisfaction, customer loyalty, and profit
and growth - links all the critical
dynamics of top customer service.
 "The company guides, nurtures, and
empowers its employees, and the
employees play a vital role in securing
customer satisfaction and the benefits
that accrue from it".1

82. MAIN BENEFITS OF CUSTOMER SATISFACTION
oCustomers stay with the company longer.
oCustomers deepen their relationship with
company .
oCustomers demonstrate less price
sensitivity .
oCustomers recommend company's
products or services to others .

83. How To Make Customer Service and Essential Part of
Your Corporate Culture
• Demonstrate continuously to your employees that in your
company's order of priorities, customer service comes before all
else
• Gain a real-world view of the issues in customer relationships:
empower employees to identify customers' true needs; engage
not only front-line customer service people in this continuous
research and field contact with customers but all your staff,
including CEO
• Provide for customer input to be heard simultaneously throughout
your organization, by all its key functions and departments
• Develop system for collecting customer satisfaction data and
measuring customers' perception of the value created by your
organization
• Relay information concerning customer expectations to those
responsible for value creation

85. SMED is Continuous Improvement
It is a customer driven requirement. Customers are
demanding:
Product and service diversity
Lower costs
Higher reliability and quality.
In essence organizations need to become leaner !
So organizations must:
Produce smaller lots, more frequently.
Expand the scope and diversity of products and
services.
Reduce quality defects.

86. Ultimately, SMED focuses on reducing changeover and set-up
times, thus enabling organizations to:
Produce smaller lots of products and services more
frequently !
Develop a broader scope of products and services !
Reduce quality defects towards zero !
Meet Customer’s Expectations !

87. What Does Set-up/changeover
reduction mean for my business?
Increased customer service levels and
profits !
Via Waste Elimination resulting in:
Reduced Lead Times-Faster Delivery
Zero Inventories-Reduced Working Capital
Improved Quality
Smaller lots of products-flexibility
Diversified Product & Service Options

88. Why SMED ?
Look Familiar ?
•To eliminate the wastes that result from
“uncontrolled” processes increasing inventories
and
lead times..
• To gain control on equipment, material &
inventory.
• Apply Control Techniques to Eliminate Erosion of
Improvements.
• Standardize Improvements for Maintenance of
Critical Set-up Parameters.

89. Think
Break Internal External Setup
Classify Three items under each item category.
Internal External
____________ ____________
____________ ____________
____________ ____________
Which items would you convert from internal to external Setup ?
_________________________________________________________
_______________________________________________
Why?
_________________________________________________________
_______________________________________________

90. Traditional Setup Practices
Material movement occurs
after the machine is •Completed products are
turned off. transferred to next operation.
•Raw material is moved after
the machine is stopped.
Detection of defects or
missing equipment is noticed •Setup tooling delivered after
which the machine is running. the changeover has begun.
•Defective product identified
after internal setup has begun.
Defective tooling,fixtures,
setup instruments are •The operator notices that
noticed after the machine is equipment is missing after
turned on. internal setup has begun.

91. 5 “Traditional”Setup Steps Defined
 Preparation - Ensures that all the tools are working
properly and are in the right location.
 Mounting & Extraction - Involves the removal of the tooling
after the production lot is completed and the placement of
the new tooling before the next production lot.
 Establishing Control Settings - Setting all the process
control settings prior to the production run. Inclusive of
calibrations and measurements needed to make the
machine, tooling operate effectively.
 First Run Capability - This includes the necessary
adjustments( re-calibrations, additional measurements)
required after the first trial pieces are produced.
 Setup Improvement- The time after processing during
which the tooling, machinery is cleaned, identified, and
tested for functionality prior to storage.

92. “Traditional”Setup Resource Consumption Analysis
Setup Steps Setup Type Setup Type Resource Setup Type Setup Type
Traditional Traditional Consumption One-Step One-Step
Internal External ( %) Internal External
Preparation
X 20 % X
Mounting & Extraction
X 5% X
Establish Control
Settings X 15 % X
First Run Capability
X 50 % N/A N/A
Process Improvement
X 10 % X

93. Examples of wastes in a traditional setup !
Think Break
What kind of “setup wastes” can you identify in this pictures ?
________________________________________________________
________________________________________________________
________________________________________________________

94. One Step Setup
Implementation
Plan
Step 1 Step 2 Step 3 Step 4 Step 5
Develop One Step Setup Develop Specific Develop Communication Develop One Step Implement One Step
Implementation Team Implementation Plan Plan Setup Training Plan Set-up
Separate Internal
from External Progressive
Reduction of Setup
Setup Enhancements Processes
Optimizing Setup
Integrate Internal into
Processes
External Setup
Step 6
Verification / Standardization

95. Phase 2 Combining equipment functionality
Involves standardizing the equipment ( parts, tooling, processes) based on
commonality between setups to reduce the number of setup steps and cycle
times. The common setup parts were identified and
By using these replaced with this jig/holder combination.
Notice how
fixtures, the
different
parts are
quantities of the
automatically
same part can
centered and
be setup with
adjusted for
the same fixture.
height and
Also, these
flatness as a
setups can occur
part of
while the
External setup-
machine is
not Internal
running.
setup.

96. Waste associated with finding, replacing, motion will be
eliminated by this example of visual placement.
Tooling supplies are clearly Tooling supplies are neatly assigned a
labeled unique location.

97. Phase 3: Reducing setup Elimination of Bolts &
processing time. Adjustments.
Example of One Step Fastening
Bolt attachments requires 32
complete turns for each bolt or
screw (1 for each thread) to This clamp attachment requires one
fasten this bolt and die to a step to attach the die to a machine.
machine.

99. Why is “Zero Defects” an
Important Concept?
Key Element in our
capability to implement
Kaizen- Lean
Manufacturing Systems.
No need for “just in case” inventories
Allows company to make only what
the customer needs.

100. Why is “Zero Defects” an Important
Concept?
Maintain Customer Satisfaction &
Loyalty
Happy Customers mean more sales!

101. Why is “Zero Defects” an Important
Concept?
COST
There is always a cost
associated with
manufacturing defects!

102. Costs of Defects ?
Does it cost more to make processes better ? NO
Making processes better leads to reduced
Rework
Scrap
Warranty costs
Inspection costs

103. 1-10-100 Rule
The 1-10-100 rule states that as a product or service moves through
the production system, the cost of correcting An error multiplies by
10.
Activity Cost
Order entered correctly $1
Error detected in billing $ 10
Error detected by customer $ 100
Dissatisfied customer shares the experience with others the costs is
$1000

104. Why is “Zero Defects” an
Important Concept?
Key Element in our
capability to eliminate
waste.
Defects Misused resources
Inventories Untapped Resources
Motions
Delays
Processes

105. What is Waste?
Everything we do that
costs something without
adding value to the product.
Our objective > Value added = Maximum
Non-Value Added = Minimum

106. The nine types of waste
 Overproduction
9
Wastes  Delays (waiting time)
 Transportation
 Process
 Inventories
 Motions
 Defective products
 Untapped resources
 Misused resources

107. Elimination of Waste
The Method
Identify
waste
Check and Search for
measure causes
results
Implement
continuous
improvement

108. Elimination of Wastes and Continuous Improvement
The Approach The Means The Strategy
 One piece flow
 Elimination of  SMED •Leadtime
wastes
 Visual Controls
 Workplace
 KAIZEN Organization •Costs
 Kanban
 Standard Work Quality
 Continuous
Improvement  Process Control the
 Total Productive
Maintenance
First Time
 Poka-Yoke

109. What is a Zero Defect Quality System
(ZDQ)?
A quality concept to manufacture ZERO
defects & elimination of waste associated
with defects!
“ZERO” is the goal!

110. What is a Zero Defect Quality System
(ZDQ)?
Based on a discipline that
defects are prevented.
Control the process so that
defects are impossible!

111. What is a Zero Defect Quality System
(ZDQ)?
No Finger Pointing.
Operators and Machines
will sometimes make
mistakes.
Find ways to keep errors from
becoming defects!

112. What is a Zero Defect Quality System
(ZDQ)?
A Method for Mistake-
Proofing (Poka-yoke) a
process.
ZDQ assures that
defects are not shipped!

113. How ZDQ Makes Work Easier
Mistake-Proof or Poka-yoke the process!
Recognize that it is
natural for people to make
mistakes.

114. How ZDQ Makes Work Easier
Mistake-Proof or Poka-yoke the process!
Not noticing that an error
is made or a machine is
not functioning does not
make a person stupid or
foolish.

115. How Do We Achieve ZDQ ?
Mistake-Proof or Poka-yoke the process!
Errors never become defects!
No finger pointing after
the fact. No mandate to
do better next time.

116. Poka-Yoke results in Quality of
Processes
Quality the 1st time Leadtime
Cost
Transformation = Quality production the 1st time
Inspection….eliminated ???
Transport
Dedicated lines
Storage
Delay/wait One piece flow

117. Relationship between processes and quality defects.
•Almost any business activity can be considered a process.
•Production processes involve the flow of material. Machining,
assembly, and packaging are typical production processes.
•Business processes involve the flow of information. Financial
planning, purchasing & order entry are typical business
processes.
•All processes have the potential for defects. Hence, all
processes offer a opportunity for the elimination of defects and
the resultant quality improvement.

118. In order to reduce quality defects and stop
throwing away money, we must
=
Understand the process an its relationship to other
business processes.
Identify the inputs and outputs of the process.
Know who are the suppliers to and customers of the
process.
And
Reduce the
variation of the process

119. What Causes Defects?
Process Variation From
1. Poor procedures or standards.
2. Machines.
3. Non-conforming material.
4. Worn tooling.
5. Human Mistakes.
Except for human mistakes these conditions can
be predicted and corrective action can be
implemented to eliminate the cause of defects

120. What Causes Defects?
Human Mistakes
Simple errors-the most common cause of defects-occur
unpredictably.
The goal of ZDQ is zero! Make certain
that the required conditions are in place
and controlled to make acceptable
product 100% of the time.

121. Ten Types of Human Mistakes
 Forgetfulness
 Misunderstanding
 Wrong identification
 Lack of experience
 Willful (ignoring rules or procedure)
 Inadvertent or sloppiness
 Slowliness
 Lack of standardization
 Surprise (unexpected machine operation, etc.)
 Intentional (sabotage)

122. Relationship of Defects and Human Errors
Misunderstanding
Non-supervision
Misidentification
Human errors
Inadvertant
Intentional
Amateurs
Slowness
Forgetful
Surprise
Willful
Causes of defects
Missed operations
Processing errors
Errors in part set-up
Missing parts
Wrong parts
Processing wrong workpiece
Misoperation
Adjustment error
Improper equipment set-up
Improper tools and jigs
highly correlated correlated

123. The 4 Components of ZDQ
ZDQ functions by combining four elementary
components:
1. Point of Origin Inspection
2. 100 % Audit Checks
3. Immediate Feedback
4. Poka-Yoke

124. Inspection
The 3 basic approaches to inspection of processed product
are:
Judgement/Standard Inspection
Informative Inspection
Point of Origin Inspection
The first two approaches are widely used and considered
traditional.
Only Point of Origin Inspection actually eliminates
defects.

125. Point of Origin Inspection
May include: Switches that detect miss-
Focus on prevention, not detection. fed parts
One of the 4 basic elements of ZDQ. Pins that prevent miss-
feeding
Differs from Judgement and Informative:
Warning lights
Catches errors
Sound signals
Gives feedback before processing
No risk of making more defective
Process with Zero Defects
product
Detect Error
By combining Check and Do in the Feedback/Corrective Action
ZDQ approach; the Doing is controlled
so it cannot be wrong 100% of the time!

126. ZDQ/Check and Do/Point of Origin Inspection
Point of Origin Inspection
•Check for optimum process
conditions before processing is
done and errors can be made.
•Instant feedback.
•Corrections made before
defects occur.

127. 100% Audit Checks
Point of Origin Inspection on every piece.
The second of the 4 basic elements of ZDQ.
Differs from SQC inspection:
•Does not rely on sampling
•Prevents defects
•Does not assume defects will Zero Defects
statistically occur
100% Audit checks everything on the line!

128. Quick Feedback
Error correction as soon as possible
The third of the 4 basic elements of ZDQ.
Differs from traditional inspection approaches that:
•Correct problems after the process
•Address the problem when errors are already defects
•In some cases never identify an error has occurred
ZDQ sends the operator a signal and alarms
the person that an error has happened!
ZDQ Inspections = Immediate Feedback

129. The Seven Guidelines to Poka- Yoke Attainment
1.) Quality Processes - Design “Robust” quality processes to achieve zero
defects.
2.) Utilize a Team Environment- leverage the teams knowledge,experience to
enhance the improvement efforts.
3.) Elimination of Errors -Utilize a robust problem solving methodology to drive
defects towards zero.
4.) Eliminate the “Root Cause” of The Errors-Use the 5 Why’s and 2 H’s
approach
5.) Do It Right The First Time- Utilizing resources to perform functions
correctly the “first” time.
6.) Eliminate Non-Value Added Decisions- Don’t make excuses-just do it !
7.) Implement an Incremental Continual Improvement Approach-implement
improvement actions immediately and focus on incremental improvements;
efforts do not have to result in a 100% improvement immediately.

130. Poka-yoke
Mistake-proofing systems
The fourth of the 4 basic elements of ZDQ.
“The machine
Does not rely on operators catching mistakes shut down. We
must have made
an error!”
Inexpensive Point of Origin inspection
Quick feedback 100% of the time
BEEP!
BEEP!
BEEP!
Most Poka-yoke devices are sensor or
jig devices that assure 100%
compliance all the time!

131. Poka-yoke
What is Poke-yoke?
A method that uses sensor or other devices for catching
errors that may pass by operators or assemblers.
Poka-yoke effects two key elements of ZDQ:
Identifying the defect immediately ( Point of Origin Inspection)
Quick Feedback for Corrective Action
How effective the system is depends on where it is used: Point of Origin or
Informative Inspection.
Poka-yoke detects an error, gives
a warning, and can shuts down
the process.

132. Poka-yoke
Poke-yoke and Point of Origin Inspections( Proactive
Approach):
A fully implemented ZDQ system requires Poka-yoke
usage at or before the inspection points during the
process.
Poka-yoke will catch the errors
before a defective part is
manufactured 100% of the time.

133. Poka-yoke
Poka-yoke and Informative Inspection( Reactive Approach):
•Check occurs immediately after the process.
•Can be an operator check at the process or successive
check at the next process.
•Not 100% effective, will not eliminate all defects.
•Effective in preventing defects from being passed to next
process.
Although not as effective as the
Source inspection approach, this
methodology is more effective than
statistical sampling and does
provide feedback in reducing
defects.

134. Poka-yoke Systems Govern the Process
Two Poka-Yoke System approaches are utilized
in manufacturing which lead to successful ZDQ:
1. Control Approach
Shuts down the process when an
error occurs.
Keeps the “suspect” part in place
when an operation is incomplete.
2. Warning Approach
Signals the operator to stop the process
and correct the problem.

135. Control System
Takes human element out of the equation;does
not depend on an operator or assembler.
Has a high capability of achieving zero defects.
Machine stops when an irregularity is detected.
“There must have been
an error detected; the
machine shut down by
itself!”

136. Warning System
Sometimes an automatic shut off system is not an
option.
A warning or alarm system can be used to get an
operators attention.
Below left is an example of an alarm system using dials,
lights and sounds to bring attention to the problem.
Color coding is also an effective non automatic option. “I’m glad the alarm
went off, now I’m
BEEP! not making defects!”
BEEP!
BEEP!

137. Methods for Using Poka-yoke
Poka-yoke systems consist of three
primary methods:
1. Contact
2. Counting
3. Motion-Sequence
Each method can be used in a
control system or a warning system.
Each method uses a different
process prevention approach for
dealing with irregularities.

138. Contact Method
A contact method functions by detecting whether a sensing
device makes contact with a part or object within the process.
Cylinder present Missing cylinder;piston fully
extended alarm sounds
An example of a physical contact
method is limit switches that are
pressed when cylinders are driven
into a piston. The switches are
connected to pistons that hold the Cannot proceed
part in place. In this example, a to next step.
cylinder is missing and the part is Contact Method using limit
switches identifies missing
not released to the next process. cylinder.

139. Physical Contact Devices
Limit Switches Toggle Switches

140. Energy Contact Devices
Photoelectric switches can
be used with objects that
Light
are translucent or
transparent depending
upon the need.
Transmission method:
Transmitter two units, one to transmit
Receiver
light, the other to receive.
Reflecting method:PE
Object sensor responds to light
reflected from object to
detect presence.
If object breaks the transmission, the machine is signaled to shut down.

141. Contact Device
An example of a
contact device
using a limit
switch. In this
case the switch
makes contact
with a metal barb
sensing it’s
presence. If no
contact is made
the process will
shut down.

142. Contact Methods
Do not have to be high tech!
Passive devices are sometimes the best method. These can be as
simple as guide pins or blocks that do not allow parts to be seated in
the wrong position prior to processing
Take advantage of parts designed with an uneven shape!
A work piece with a hole a bump or an uneven end is a perfect
candidate for a passive jig. This method signals to the operator right
away that the part is not in proper position.

143. Counting Method
Used when a fixed number of operations are required within a
process, or when a product has a fixed number of parts that are
attached to it.
A sensor counts the number of times a part is used or a process is
completed and releases the part only when the right count is
reached.
In the example to the right a limit
switch is used to detect and count
when the required amount of holes
are drilled. The buzzer sounds
alerting the operator that the
appropriate amount of steps have
been taken in the process.

144. Counting Method
Another approach is to count the number of parts or
components required to complete an operation in advance.
If operators finds parts leftover using this method, they
will know that something has been omitted from the
process.
“I have an extra
part. I must have
omitted a step!”

145. Motion-Sequence Method
The third poka-yoke method uses sensors to determine
if a motion or a step in a process has occurred. If the
step has not occurred or has occurred out of sequence,
the the sensor signals a timer or other device to stop
the machine and signal the operator.
This method uses sensors and
photo-electric devices connected to
a timer. If movement does not
occur when required, the switch
signals to stop the process or warn
the operator.

146. Motion-Sequence Method
In order to help operators select the right parts for the right step in a
process the “sequencing” aspect of the motion-step method is used. This
is especially helpful when using multiple parts that are similar in size
and shape.
In this example, each step of the machine cycle is wired to an indicator board
and a timer. If each cycle of the machine is not performed within the required
“time” and “sequence”, the indicator light for that step will be turned on and
the machine will stop.
Machine Indicator Board

147. Types of Sensing Devices
Sensing devices that are traditionally used in poka-
yoke systems can be divided into three categories:
1. Physical contact devices
2. Energy sensing devices
3. Warning Sensors
Each category of sensors includes a
broad range of devices that can be
used depending on the process.

148. Physical Contact Sensors
These devices work by
physically touching
something. This can be a
machine part or an
actual piece being
manufactured.
In most cases these
devices send an electronic
signal when they are
touched. Depending on
the process, this signal
can shut down the
operation or give an
operator a warning
signal.

149. Touch Switch
Used to physically detect the presence or absence of an object or
item-prevents missing parts.
Used to physically detect the height of a part or dimension.

150. Energy Sensors
These devices work by using
energy to detect whether or not an
defect has occurred.
Vibration Photoelectric Fiber optic

151. Warning Sensors
Warning sensors signal Color Code
the operator that there
is a problem. These
sensors use colors,
alarms, lights to get the
workers attention !
These sensors may be
used in conjunction with Lights connected
a contact or energy to Micro
switches &
sensor to get the Lights timers
operators attention.

152. To prevent mistakes, develop error proofing
devices
POKA-YOKE
to avoid (yokeru) inadvertent errors (poka)
 Checklists
 Dowel and locating pins
 Error & alarm detectors
 Limit or touch switches
 Detectors, readers, meters, counters

153. Two types of error proofing devices
POKA-YOKE
 Control - eliminates the possibility of a
mistake to occur (automatic machine
shutdown)
 Warning - signals that a mistake can
occur (blinking light, alarm, etc.)

154. 3 Rules of POKA-YOKE
 Don’t wait for the perfect POKA-
YOKE. Do it now!
 If your POKA-YOKE idea has better
than 50% chance to succeed…Do it!
 Do it now….improve later!

155. Source Inspection
Detects mistakes before they become defects
Transformation = Quality production the 1st time
Inspection….eliminated ???
Transport
Dedicated lines
Storage
One piece flow
Delay/wait

157. CASE STUDY
 IBM compared part counts, bills of materials,
standard versus custom part usage, and estimated
processing costs by tearing down competitor
products as soon as they are available.
 "Through such tear-downs during the heyday of the
dot matrix printer, IBM learned that the printer made
by the Epson, its initial supplier, was exceedingly
complicated with more than 150 parts.
 IBM launched a team with a simplification goal and
knocked the part count down to 62, cutting
assembly from thirty minutes to only three."1