Day 2 - Reduce COGS

“Best Practices to
reduce COGS ”
Day 2 - 21st April ’2021
Achieve Competitive edge
Subrata Mitra Majumdar

Management & Operational Excellence Consultant
CII IQ – Bengaluru
1
WELCOME
• Welcome to the knowledge sharing and learning
session on reduction of COGS.
• The very reason you are selected to attend this
learning session is, the organization consider
you an important member, who have the passion
and can contribute to its journey toward Cost
excellence significantly.
• Enjoy Learning.
2
Learning Mindset, Session Fundamentals
• Consider this learning a big opportunity provided by your
organization : WIN – WIN for you and your organization
• Ensure faculty is not distracted – no side talk, ask direct
questions, mobile switched off or in silent mode.
• Note down slide numbers where you have questions, need
clarifications. Ask question during Q & A.
• Write some problems that you are facing in your areas today
and try to ask questions at the end, related to those problems.
• Be safe wherever you are – be aware of safe exit route in
case of emergency, any tripping hazard.
• Enjoy Learning.
• Post training, identify some areas, issues, where you will
deploy these methodologies. Reach out to us for support.
• Be the ambassador of new tool, system in your plant,
function.
3
Contents
• Understanding of Profit and Costs
• Elements of Cost of Goods Sold and cost reduction strategies –
Direct Raw Material, Direct Labour and Overheads.
• Identification, reduction, elimination of various process wastes -
3MUs, Standing in a Circle, Waste walk, Basics of VSM.
• Loss Cost Matrix
• Journey toward Cost excellence
• High-performance Team
• OEE – Overall Equipment Effectiveness
• Some Tools to improve Productivity - SMED, Standard Work,
Line Balancing, Preventive Maintenance, Autonomous
maintenance, Managers Model Machine
• Overview of Constraint Management (Theory of Constraint)
• Focused improvement – Kaizen, Kaizen event.
• Supply chain cost reduction, savings.
• Supplier Partnership for Green channel supplies.
4
Contents
• Problem-solving Tools – Pareto, 4M Analysis, Cause & Effect
Diagram, Cause and Effect Matrix, 5 Why, Tree Diagram
• Kipling method - 5W 1H
• AndOn, Stop and Fix, Response to Abnormalities.
• Poka-yoke
• Six Sigma fundamentals
• Concept of Green Mfg, 5R for waste reduction
• Product Protection
• Cost of Quality - Cost of Conformance and Cost of Poor
Quality. Hidden Cost in P & L account
• Competency Mapping, Skill matrix, Multi-skill
• Improvement Project management – Toyota A3
• Calculation of Cost Reduction and Financial benefits from
various initiatives, tools, improvements.
• Impact on P & L and Balance sheet
5
Contents
• P & L statement, strategies for Operations cost management
– a company example
• Financial benefits during my tenure
• Contribution by Sales and Design functions for Manufacturing
cost reduction.
• Right KPIs to drive cost reduction
• Reduce Breakeven point to improve profitability
• Understand Breakeven point
• Variance Analysis
• Examples, Case studies of all the Improvement Tools,
Practices.
• Cost reduction self-assessment
• What next, for implementation
6
Standard Operations >
Standard Work
Create Stabilize Improve
7
Standard Operations
A tool utilized to create flow and assure maximum performance with
minimum waste through the best combination of people, their
environment and process that is paced to takt time
Standard Operations Tools are utilized to create

Standard Work
It establishes the best and most reliable methods and
sequence for each process and each operator
8
Standard Operations Are...
• A Prescribed Sequence of Production/ Process Steps
• Assigned to a Single Operator – motion, steps
• Which Are Balanced to the Takt Time
• Standard Work Work Standards
• Needs to be Dynamic not Static
• Minimize and Control the Variation in :
– Output
– Quality
– WIP
– Cost
9
Standard Operation Tools
• Takt Time Calculation

• Time Observation sheet
• Process Capacity sheet
• Standard Work Combination Sheet
• Percent Loading Chart
• Standard Work Layout
10
TAKT Time
• Calculated using available production time

and customer demand
Total Available Production Time Per Period*

TAKT Time =
Total Production Requirements Per Period
*Time period units must be consistent (shift, day, week…)
11
Example
• The factory is a 2-shift operation

• Number of hours per shift = 8
• Break time = 10 minutes twice per shift
• Clean up time = 4 minutes per shift
• Customer Requirements = 760 per day
12
TAKT Time - Calculation Worksheet
Takt Time = Net Operating Time Available
Customer Demand
Net Operating Time available:
8 # hours/time period
480 minutes/time period (# hours/time period) X 60 minutes/hour
- 2(10) breaks( minutes)
- 4 clean up time (minutes)
- 0 set up time (minutes)
total = 456 available production minutes X 60 = 27360 Available Production Seconds
Customer Demand:
380 Customer Requirement (pieces)
Takt Time = 27360 Available Production Seconds

380 Customer Requirements
Takt Time = seconds/piece 13

72 seconds
Time Observation Form
• Focuses on manual and walk time elements
• Used to record:
– the elements of work/activity
– amount of time required to perform these elements
– cycle times for all operators
• Steps:
– Observe the Operations and Break Into Small Elements
– Establish Lowest Repeatable Elapsed Time Per Element
14
TIME OBSERVATION FORM Example
Process: Special Product Observer: Training Group Date: 2/14/02
Operation Task
Step Element 1 2 3 4 5 6 7 8 9 10 11 12 Time Remarks
1 Walk 2 2'19 4'38 6'55 9'15 11'37 13'53 16'15 18'31 20'51 23'15 25'31
2 2 2 2 2 3 2 1 2 2 2 2 2
2 Pick up 3 2'20 4'39 6'56 9'16 11'38 13'55 16'16 18'32 20'53 23'16 25'32
1 1 1 1 1 1 2 1 1 2 1 1 1
3 Walk 5 2'22 4'41 6'58 9'18 11'41 13'57 16'18 18'34 20'55 23'18 25'34
2 2 2 2 2 3 2 2 2 2 2 2 2
4 Saw 13 2'31 4'49 7'05 9'26 11'47 14'05 16'25 18'42 21'04 23'26 25'43
8 9 8 7 8 6 8 7 8 9 8 9 8
5 Walk 15 2'33 4'51 7'07 9'28 11'50 14'07 16'27 18'44 21'06 23'28 25'45
2 2 2 2 2 3 2 2 2 2 2 2 2
6 Drill 23 2'41 4'59 7'15 9'37 11'56 14'15 16'35 18'52 21'14 23'35 25'53
8 8 8 8 9 6 8 8 8 8 7 8 8
7 Walk 25 2'43 5'01 7'17 9'39 11'58 14'17 16'38 18'54 21'15 23'37 25'55
2 2 2 2 2 2 2 3 2 1 2 2 2
8 Degrease 32 2'50 5'07 7'24 9'46 12'05 14'24 16'45 19'02 21'22 23'44 26'02
7 7 6 7 7 7 7 7 8 7 7 7 7
9 Walk 34 2'52 5'09 7'27 9'48 M 14'26 16'47 19'04 21'24 23'46 26'04
2 2 2 3 2 2 2 2 2 2 2 2
10 Weld 41 2'59 5'15 7'34 9'55 12'14 14'33 16'54 19'12 21'31 23'53 26'11
put down/pick up 7 7 6 7 7 7 7 8 7 7 7 7
11 Walk 43 3'01 5'17 7'36 9'57 12'16 14'35 16'56 19'14 21'33 23'55 26'13
2 2 2 2 2 2 2 2 2 2 2 2 2
12 Heat Treat 45 3'03 5'19 7'38 9'59 12'18 14'37 16'58 19'16 21'35 23'57 26'15
outside of cell 2 2 2 2 2 2 2 2 2 2 2 2 2
13 Walk 47 3'05 5'22 7'40 10'01 12'20 14'39 16'59 19'18 21'37 23'59 26'17
2 2 3 2 2 2 2 1 2 2 2 2 2
Time for one Cycle 15
TIME OBSERVATION FORM Example
Process: Special Product Observer: Training Group Date: 2/14/02
Operation Task
Step Element 1 2 3 4 5 6 7 8 9 10 11 12 Time Remarks
14 Turn 59 3'17 5'33 7'53 10'13 12'32 14'52 17'12 19'30 21'50 24'11 26'29
12 12 11 13 12 12 13 13 12 13 12 12 12
15 Walk 1'01 3'19 5'35 7'56 10'16 12'34 14'54 17'14 19'33 21'52 24'13 26'31
2 2 2 3 3 2 2 2 3 2 2 2 2
16 Grind 1'09 3'27 5'43 8'04 10'24 12'42 15'01 17'20 19'41 22'01 24'22 26'39
8 8 8 8 8 8 7 6 8 9 9 8 8
17 Walk 1'11 3'29 5'45 8'06 10'27 12'45 15'04 17'22 19'43 22'03 24'24 26'41
2 2 2 2 3 3 3 2 2 2 2 2 2
18 Gun Drill 1'22 3'40 5'56 8'18 10'38 12'57 15'15 17'34 19'54 22'14 24'35 26'52
11 11 11 12 11 12 11 12 11 11 11 11 11
19 Walk 1'24 3'42 5'59 8'20 10'40 12'59 15'18 17'36 19'56 22'16 24'37 26'54
2 2 3 2 2 2 3 2 2 2 2 2 2
20 Inspect 1'42 4'00 6'16 8'38 10'59 13'17 15'36 17'54 20'13 22'35 24'54 27'12
18 18 17 18 19 18 18 18 17 19 17 18 18
21 Walk 1'44 4'02 6'18 8'40 11'01 13'19 15'39 17'56 20'15 22'37 24'56 27'14
2 2 2 2 2 2 3 2 2 2 2 2 2
22 Pack 2'14 4'33 6'50 9'10 11'31 13'49 16'10 18'26 20'45 23'10 25'26 27'44
30 31 32 30 30 30 31 30 30 33 30 30 30
23 Walk 2'16 4'35 6'52 9'12 11'33 13'50 16'12 18'28 20'48 23'12 25'28 27'46
2 2 2 2 2 1 2 2 3 2 2 2 2
24 Put Down 2'17 4'36 6'53 9'13 11'34 13'51 16'14 18'29 20'49 23'13 25'29 27'47
1 1 1 1 1 1 2 1 1 1 1 1 1
Time for one Cycle 137 16

Process Capacity Table
Documents process capacity per time period

Focuses on total machine time including any load/unload
• Only load/unload and cycle start should be included for
manual time
• Apportions tool change time
• Does not include abnormalities
One table per process/machine/cell
Keep on file for reference
17
18
Standard Work Comb. Sheet
One sheet per operator

Combines manual, automatic machine and walk elements
Plotted against TAKT time
Post at the start point of each work sequence
19
Cycle Times
• Operator Cycle Time (OCT):

• The total time for a worker to complete one cycle of an
operation
• Machine Automatic Cycle Time (MACT):
• The time between the instant the on button is pressed and the
point at which the machine returns to its original position after
the target machining operation has been completed
• Machine Cycle Time (MCT):
• The total time it takes for a machine to produce one unit,
including the time it takes to load and unload
20
Cycle Time
Machine Cycle Time
Unload/ Load/ Machine Automatic Time

Start
Inspect
Pack Wait
Operator Cycle Time
21
OPERATOR
NUMBER
MODEL NUMBER 12345-67890 master cylinder DATE PREPARED 2/20 QUOTA PER SHIFT 690 Manual
AND NAME STANDARD WORK Automatic
WORK SEQUENCE Master cylinder machining COMBINATION SHEET DEPT. TAKT TIME 40 Walking wwwwww
STEP TIME
NUMBER OPERATION NAME Man. Auto. Walk OPERATION TIME (IN SECONDS)
1 Pick up blank 2 2
2 M110
4 28 2
Unload/load/switch on
3 L210
5 29 2
4 D310
4 27 2
5 T410
3 12 2
6 Measure thread diameter 6 2
7 Put down finished piece 2 2
TOTALS 26 14
22
Filling Out A SWCS
Activity Key
Indicate manual work time by a solid line
Indicate machine time by a dotted line
Indicate walking time by a wavy line
Indicate waiting time by a double line
23
Percent Loading Chart / Yamazumi chart: Takt Time
vs. Op. Cycle Time Current State
Opportunity!!
210
3.68
≈4
24
Example : Balance OCT To Takt Time
Percent Loading Chart
Operator of Opportunity
• Cell should be front loaded
• All waiting time is allocated to the operator of opportunity
• All other operators should be fully loaded to TAKT time
• Operator of opportunity concept makes the waste (waiting) visual
• Exposes improvement opportunities at the last operation
25
Line Balancing
• Line balancing is the process by which work is evenly
distributed to workers to meet takt time. Some operations take
longer than others, which may cause one or more operators to
wait for next part; and some operations need more than one
operator. Line balancing helps to use every worker well and
makes sure that no one is idle for too long or working too
much. Several steps are required to balance the line.
• Step One: To balance the line you must understand the
current conditions. Draw a map of the process identifying
each operation and the number of operators currently on the
line. Note the cycle times of each operation and add them
together to get the total process cycle time. Figure next slide
shows an example of a process map of the operations of one
cell.
26
Line Balancing contd…
• You can also use a table showing current state data, like the
one below. Note the measurements for the current conditions
in each operation and for each operator.
Current state data
• Step two : The next step is to create an operator balance

chart to give you a visual representation of the data you
collected. An operators balance chart compares the cycle
times of each operation to the takt time. It will help you
understand the current condition and can also be used to plot
the desired condition or balanced line in relation to takt time.
27
Line Balancing contd….
• It is visual display of individual work operations, operation times as they
compare to total cycle time and takt time and operators at each position.
An operator balance chart will show you where opportunities for
improvement exist. In the example below, you can easily see that the
line is out of balance in the Current State.
Step three : Next determine

the number of operators needed.
The formula is :
Total Operator cycle time 202
# of operators needed = ------------------------- = ------------= 3.36
Takt Time 60
28
• In our example, the goal is to have three workers create the
part within takt time – each worker spending no more than 60
seconds for their operations. This means they would complete
the five operations in 180 seconds, a reduction of 22 seconds
in the total cycle time.
• One solution to reaching this goal is shown in the Desired
State in Figure in previous slide. It proposes that the first four
operations be combined into two – A+B and C+D. But C + D
have total time more than Takt time. Same for E. Hence
Operations C, D, & E will have to be simplified, improved to be
able to complete ( C + D and E ) them in 60 seconds or less.
This is the target. As you can see, line balancing will support
your takt time.
• The challenge is to find a way for this to be achieved. The
solution lies in the concept of full work through standardization.
29
Some key Metrics - Line Balancing
1. Balance delay
• Balance delay (%) = ((No of work station x bottleneck cycle
time – total cycle time) / (No of work station x bottleneck
cycle time)) x 100
= ((3 x 77 – 180) / (3 x 77)) x 100 = 22.07 %
• Which means the workstations are idle for 22.07% of its
working time.
2. Line efficiency
• Line efficiency (%) = (total cycle time / (no of work station x
bottle neck cycle time)) x 100
= 180 / (3 x 77 ) = 77.92 %
• It means assembly line is active 77.92% of its working time.
• Line efficiency can also be calculated by (1 – Balance delay)
• Once we reduce Bottleneck cycle time, above metrics
will improve. Waiting time comes down, Flow improves. 30
Key Metrics – FOR YOUR HOMEWORK
3. Smoothness index indicates the smoothness of flow
of product through the line. If the index is close
to zero its a perfect line.
Formula
( Bottleneck cycle time – cycle time of station 1 )2 + ( Bottleneck cycle time –
cycle time of station 2 )2 + ( Bottleneck cycle time – cycle time of station 3 )2
31
• Finding ways to evenly distribute the work among the
operators on each line and within each cell is the task of the
teams in each process.
• In this figure you can see two ways to redistribute work and
eliminate the need for one worker. Only one of these
solutions results in full work.
32
Line Balancing – Possible solutions
• Line balancing is the process by which work is evenly
distributed to target workers to meet takt time.
• Some common actions to balance a line –
- Redistribution of work
- Re-layout, Rearrange workplace
- Increase Machine-Man ratio
- Combine work / operations, Re-skilling
- Eliminate , Reduce Waste
- Cycle time reduction on high Operator Cycle Time task –
review Standard Work Combination sheet.
- Sub-contracting wherever necessary
- Simple Automation
- Technology up-gradation
- Addition of Machines, Jigs and Fixtures 33
Move from PUSH to FLOW
Designing a Future state
34
FLOW Manufacturing
Develop continuous flow wherever possible.
• Continuous flow refers to producing one piece at a time with

each item passed immediately from one process step to next
without stagnation or waste in between. Lot of creative
thinking and actions required to Implement continuous flow.
• Sometimes you may have to limit extent of continuous flow –
 Some processes are designed to operate at very fast or slow cycle times and
need to change over to serve multiple product families
 Suppliers are far away and shipping one piece at a time is not realistic
 Some processes have too much lead time or too unreliable to couple directly to
others.
35
36
Standard WIP - Turntable Process
TTT Process Time

SWIP = Takt Time
= SWIP
A = AUTO
M = MANUAL
125 sec
SWIP =
25
Turn Table Total Process time ( Manual + Auto ) = 125 SWIP = 5
sec, Takt Time = 25 sec
37
Standard WIP - Curtain Process
Curtain Quantity Calculation:
SWIP = 2X Cycle Time of Monument Process

TAKT Time
Incorporated when a monument process is required

Batch processes (Close Door to Start Up) include: Sintering, Heat-treat,
Plating, Coating etc.
38
Review - Existing Layout & Material Flow
39
Review - Existing Work Sequence
40
Criteria for a good layout
1. Maximum flexibility: A good layout will be one which can be rapidly
modified to meet changing circumstances.
2. Maximum co-ordination: Entry into, and disposal from, any
department or functional area should be in such a manner that it is
must convenient to the issuing or receiving departments. Layout
requires to be considered as a whole and not partially.
3. Maximum use of volume: Facilities should be considered as cubic
devices and maximum use made of the volume available. This
principle is particularly useful in stores, where goods can be stacked at
considerable heights without inconvenience, especially if modern lifting
devices are used. In offices, racking can be installed to minimize use
of floor space.
4. Maximum visibility: All the people and materials should be readily
observable at all the time; there should be no ‘hidden places’ into
which goods or information can get mislaid.
Criteria for a good layout
5. Maximum accessibility: All servicing and maintenance points should
be readily accessible. For example, equipment should not be placed
against a wall in such a manner that necessary maintenance cannot
easily be carried out.
6. Minimum distance: All movements should be both necessary and
direct. Handling work adds to cost but does not increase value;
consequently any unnecessary or indirect movements should be
avoided.
7. Minimum handling: The best handling of material and information is
no handling, but where it is unavoidable it should be reduced to a
minimum by the use of whatever devices are most appropriate.
8. Minimum discomfort: poor lighting, excessive sunlight, heat, noise,
vibration and smells should be minimized and if possible counteracted.
9. Inherent safety
10. Maximum security
11. Efficient process flow
Advantages of a good layout
1. The overall process time and cost will be minimized by reducing
unnecessary handling and movement.
2. Supervision and control will be simplified by the elimination of
‘hidden corners’
3, Changes in the programmers will be most readily accommodated.
4. Total output from a given facility will be as high as possible by
making the maximum effective use of available space and resources.
5. A feeling of unity among employees will be encouraged by avoiding
unnecessary segregation.
6. Quality of the products or service will be sustained by safer and more
effective methods of operation.
7. Allows easy maintenance of machines and plant.
8. Provides volume and product flexibility.
Various types
Cellular layout
• It promotes continuous flow of products, with the least
amount of delay and waiting
Op Op
#4 #3
Machines in order of processes
“U”-shape
One-piece flow
Op Multi-process-handling
#5 Op
#2
Op
#6 Op
Loop
#1
1
45
Advantage and Disadvantage – different layouts
Process layout Product layout Cellular layout
1. In process layout 1. The flow of product 1. Manage multiple

machines are better will be smooth and products with high to
utilized and fewer logical in flow lines. limited varieties.
Advantages machines are 2. Throughput time is 2. Reduced footprint /
required. less. space required.
2. Flexibility of equipment 3. Simplified production 3. Higher man-
and personnel is possible planning and control machine ratio
in process layout. systems are possible. possible.
3. Lower investment on 4. Less space is 4. Increases overall
account of comparatively occupied by work transit efficiency, reducing
less number of machines and for temporary the amount of WIP
and lower cost of general storage. while simultaneously
purpose machines. 5. Reduced material increasing the number
4. The diversity of tasks handling cost due to of finished products.
and variety of job makes mechanized handling 5. Support one-piece
the job challenging and systems and straight flow.
interesting. flow. 6. Less lead time and
5. Supervisors become 6. Perfect line balancing better on time delivery
highly knowledgeable which eliminates 7. Positive impact on
about the functions under bottlenecks and idle financial.
their department capacity.
6. A breakdown of one 7.Short Manufacturing 8. Exposes other

machine doesn’t disturb due to uninterrupted problems that can be
that much the overall flow of materials. addressed. Promotes
Advantages production. 8. Small amount of WIP. Multi-skill, SMED,
9.Unskilled workers can Autonomation, Line
learn and manage the balancing, Load
production. Little direct levelling.
supervision is required
1.Backtracking and long 1.A breakdown of one 1.Inability to reroute
movements may occur in machine in a product the product during
Limitations the handling of materials line may cause manufacturing.
thus, reducing material stoppages of machines 2.May require
handling efficiency. in the downstream of investment in new
2.Material handling the line. equipment, and
cannot be mechanised 2. Higher initial capital potentially, the need
which adds to cost. investment in SPMs. to scrap the older,
large-scale
equipment used more
to batch-and-queue
operations
3.Process time is 3.Lack of flexibility: A 3. Right-sizing and

prolonged which reduce change in product dispersing
Limitations the inventory turnover design may require environmentally-
and major alterations in the sensitive production
increases the in-process layout. processes throughout
inventory. 4.The line output is a plant can disrupt
4. More skilled labor decided by the conventional pollution
required. bottleneck machine. control systems.
5.More frequent 5.Comparatively high Example - shift to
inspection required. investment in equipment multiple, right-sized
6. Lowered productivity is required. painting and coating,
due to number of set-ups. parts washing, or
7.Throughput (time gap chemical milling
between in and out in the operations can alter air
process) time is longer. emissions control
approaches, needs,
and requirements
Standard Work Layout
• Overhead view of the cell and operations

• Shows process and work sequence
• Also documents:
– Standard WIP
– Safety precautions
– Quality checks
• Post at the start point of work sequence
49
Operating Standards Today
LATHE LATHE LATHE

LATHE
• No Organization and PART FLOW

500pcs.
No Control MILL
MILL
MILL
MILL
MILL
750pcs.
GRINDER GRINDER
GRINDER
250pcs.
DRILL
DRILL DRILL
50
51
Standard work sheet – another example
52
Assembly Cell Capacity
Work station
4 5
WIP kanban
3 6
1.This workcell can be operated by as many as 8
2 7 operators and as few as one.
1 8 2.WIP kanban provides a place to put a completed

piece and to decouple adjacent stations.
3.In an assembly cell the cycle time is determined totally by the manual
time and is made up of manual operation (tasks) times and the time to
move between stations.
4. If one person is in the cell then:

Cell CTa = Operation Times + Walk Times
Given the actual cycle time, the capacity of the cell is then = TimeAvailable
Cell CTa
53
Example : Work Cell CT and
Capacity
5 Suppose the cell at the left is operated by one
50 4 5 40
7 worker who walks from station to station. The
7 number next to each station is the time required for
20 3 6 40 the worker to perform the operation. The number by
each arrow is the time to walk between locations
5 5
(including the time To pick and place items at the
50
locations.
2 7 80
5 5
40 1 8 80 Cell CTa =  operation times +  walk times

2 2 = 400 +51 = 451 sec/unit Assuming an 8-hr workday
8 Operation time = Operator Cycle time
8 hours x 60 Min x 60 Sec = 63.9 units per day

Cell Capacity =
451 seconds / unit.
Green : Cycle time, Black : Walking time

54
Machining work cell
• Operations are done by machines, with one or more
machines located at every workstation.
• Machines are often automatic, single-cycle machines
that stop after the machining operation has been
completed.
• Stations and machines are connected to one
another using a variety of devices called decouplers.
These allow machines in a sequence to operate
somewhat independently of each other.
In essence, this serves as a WIP kanban.
Decouplers
• WIP control : machine automatically stops when WIP

reaches a certain level.
• Automatically transfer parts from operation to operation
(e. g., gravity chutes, slides, or mechanical conveyors).
• With de-couplers, workers can move in any direction
around the cell, even counter to the product flow.
• Automatic inspection is possible, even to the point of
sensing some characteristic about the part that allows
it to be routed to the appropriate downstream operation
• Part manipulation: reorients the part so it is ready for
insertion into the next machine.
Cell Capacity – Machining cell
5 Example : The numbers beside the arrows is the

40 4 5 30 walk time between stations. The numbers beside
the circles is the machine time for the station.
7
7 The task time per station is 10 seconds (unload,
load, start).
10 3 6 30
5 5
With one operator:
40 2 7 70 Cell CT = Max (Worker CT, Longest machine CT)

Worker CT = 8 (10) + 51 = 131 sec / unit
5 5
Longest machine CT = 70 sec / unit + 10 sec / unit
= 80 sec / unit
30 1 8 70
Cell CT = Max (131, 80 ) = 131 sec / unit
2 2
Black : Cycle time

8
Green : Walking time
8 hours x 60 Min x 60 Sec = 219.8 units per day

Cell Capacity =
131 sec. per unit
Significance of flow in the Manufacturing
If Materials don’t FLOW, following situations will arise
• Inventory build up
• It will block cash flow (Invested money is blocked without
giving ROI)
• Consumes floor space ( Occupancy of space )
• Un-necessary Material handling
• Occupancy of Resources ( Man power, Space etc., )
• Non moving material will leads to deterioration ( Damage ,
loss of material etc., )
• When material is not moved at right time, it may results in the
idleness of resources such as manpower and equipment.
• Lead time will increase
58
Significance of flow in the Manufacturing
• High Throughput time
• Decrease of Inventory turns
• High Product cost
• Reduction of OTD%
• Reduction in OTIF%
• Customer dissatisfaction and loss
• Revenue loss
• It will results in many of seven wastes , In fact 8 wastes.
• Above all result into cost of carrying inventory to the business
unit.
 If we implement flow the above situations can be

eliminated from the organisation
59
How Flow Mfg reduces costs
• Reduces inventories ( carrying costs, risk of
obsolescence, material handling, storage )
• Reduces scrap and rework
• Reduces direct and indirect labour needs
• Reduces overtime and extra shift requirements
• Reduces floor space requirements
• Develop more reliable, cost effective supplier base
• Reduces overall maintenance costs
• Reduces production scheduling technology requirements
60
Lead Time – Tree Diagram
Reduce NVAs
Objective and Reduce Set up time

Means
Reduce Processing time
Reduce batch size
Implement Supermarket Pull system

Reduce Lead time
Cells , focused lines
Automation
Line balancing
Reduce control points
Reduce movements
61
Preventive Maintenance
62
Equipment Failure -
The Path To Destruction
Poorly Maintained &
Managed Equipment
Machine Downtime
Deteriorates
Slight Problems
Results in lost
Ignored equipment availability,
performance, and
quality
Intermittent Losses Neglected
It is estimated that 10% to 40% of a traditional plant’s product costs are result of
poorly maintained Production equipments - Breakdown, Speed Loss, Minor
stoppage & Idling, Start up loss
Productive Maintenance Program
– A maintenance program for the plant to be carried out
based on reliability-centered maintenance concept.
– A System to improve the efficiency and availability of all
the manufacturing equipment. It includes identifying the
tasks by function – Autonomous, Preventive, Predictive
and generate maintenance schedule while improving
communication around breakdown and equipment
problem
– A System platform to enhance reliability of its plant
maintenance activities in a system driven environment, in
turn to enhance the Asset Management capabilities of
the firm.
Healthy equipment represents the lifeblood of our company

Cost benefits of effective Maintenance Mgmt.
1. Significantly reduce, eliminate unplanned downtime

2. Reduce equipment energy consumption by 5%-10%
3. Equipment lasts 30%-40% longer
4. Eliminate need for back-up equipment
5. Spares parts inventory reduced 15%-20% with 95% -
97% service levels.
6. Longer production runs
7. Safe work environment
8. Reduce Cost
65
Different Maintenance Processes
• Breakdown – This is the ‘wait until it breaks and then scramble’ or
‘fire-fighting’ strategy. This is also known as reactive maintenance.
• Preventive – This is periodic or scheduled maintenance involving
oiling, greasing, adjusting, repair or replacement of machine
components in order to prevent premature wear and major
problems. This also includes overhauls which prevent equipment
performance deterioration.
• Predictive – This is the repair and replacement of the machine
components before failure based on monitoring equipment
operation, historical data or predicted life cycles. A life cycle can be
predicted by –
- No. of cycles - Variation in the Operating
- Operation time ( Hours ) parameters of the component
- Calendar time such as temperature or vibration
- Component wear data
66
Different Maintenance Processes
• Corrective or Improvement – This is the result of root cause

analysis on component failure or wear out when it occurs,
followed by the installation of equipment modification or
upgrades to prevent recurrence.
• Maintenance Prevention – This results when we design or
specify equipment purchases in an attempt to eliminate all
forms of maintenance. Examples are sealed ‘maintenance
free’ automotive batteries or ‘sealed bearings’ used in an
automotive chassis or electric motors. Part of this strategy
includes designing or specifying equipment that is easy to
clean, inspect and lubricate.
67
Operator – Maintenance Technician Partnership
PREVENTIVE MAINTENANCE PREDICTIVE
MAINTENANCE
Operator – Maintenance Technician Maintenance
Independent Activities Activities ( Preventive ) Technician Activities
( Preventive ) ( Predictive )
Initial equipment cleanup. Provide technical support to Develop and analyze
operators during & after the equipment histories.
development of autonomous
activities.
Improve ability to clean, Develop critical spares Determine equipment
inspect & prevent defects. management program. physical parameters that
predict failure.
Develop cleaning, Eliminate equipment deterioration Develop equipment
lubrication standards and through scheduled general condition monitoring
checklists. inspection & equipment overhauls. system.
Develop equipment Identify chronic equipment
operating skills, standards problems and error proof.
and checklists.
Implement daily operator
activities
JH Model 68
What is Preventive Maintenance
 It combines time based and condition based methods
to keep equipment functioning by controlling
equipment, components, assemblies, accessories,
attachments.
 It is one of the components of TPM Planned
maintenance methodology that consists of
Breakdown, Preventive and Corrective maintenance.
 It consists of periodically inspecting , servicing and
cleaning equipment and replacing parts to prevent
sudden and frequent failures.
69
2 Key Maintenance Indicators
 MTBF : Mean Time Between Failures
= Total Operating Time / Number of stops, for a
period, preferably a month.
 MTTR : Mean Time To Repair
= Total Stoppage Time / Number of stops , for a
period, preferably a month.
 Goal : Higher MTBF, Lower MTTR
 Lower MTBF means frequent Breakdown and higher
MTTR means poor maintenance skill and inadequate
spare parts management.
70
Impact of Poor MTBF, MTTR
 Loss of Production, higher cost of Mfg.
 High expenses of spares, consumables
 Poor Quality
 Faster deterioration of equipment
 Increased waiting time
 Increased WIP
 Missed delivery dates
 Higher safety risk
Effective Preventive Maintenance will increase MTBF

71
Preventive Maintenance Vs Emergency repair
Preventive Maintenance Emergency Repair

Proactive Reactive
Efficient system Frequent system

replacement
No or minimal downtime Unnecessary and high

downtime
Cost a fraction of 2 to 15 X more than PM

Emergency repair Cost
72
Building a Periodic Preventive maintenance system
Select Define
an PM
asset Interval
Calendar time
Or Run time
Time
PM PM Task interval
Performed assigned reached
Report and
review, if time
interval and check Repeat
list are PM Flow
appropriate.
Revise if required 73
Visual PM document example
74
Autonomous Maintenance
75
TPM starts here
and Addresses
Minor Defects
to Prevent
Catastrophic
Failure
Breakdown
Teams
Before Long if we look we can find many Normal Maintenance
lurking minor defects that are being ignored, i.e.,... Normally starts here
Levels of Improvement, Maintenance
Improve
New - Optimum Condition Maintain
Failure
Lack of Lubrication
Contamination
Loose Nuts & Bolts
Misalignments
Failure
The 7 Levels of AM
1. Perform & develop initial Cleaning, Lubrication, & Inspection standards
– Tagging abnormalities & documentation
– Begin preventive maintenance
– Implement 5S+1
– Implement Work Place Organization (WPO)
– Develop a process to highlight abnormalities
2. Eliminate sources of contamination & inaccessible
areas
– Utilize Problem Solving techniques ( 5 WHY )
– Utilize one system to manage abnormalities
3. Measure Equipment Failures, Downtime, Losses AM - (Jishu Hozen) - This
– Refine & combine Cleaning, Lubricating, and Inspection Standards means "Maintaining one's
– Improve upon simple visuals equipment by oneself".
– Initiate measuring & monitoring OEE
4. Basic Operator training & advanced Maintenance training
5. Perform and Enhance Autonomous Inspection Standards
6. Enhance and Sustain Standards for Process Stability through Quality
Assurance and Advanced Visual Controls
7. Full Implementation of Autonomous Maintenance and Advanced
Improvement Activities
78
Systematic Arrangement
3 F Standard
• Fixed location: Items have a dedicated location and don’t
“wander”
• Fixed item: A place for everything, and everything in its place
• Fixed quantity: Only a pre-determined amount of items can
be stored
79
Spic and Span – Clean everywhere
FACTORY ENTRANCE SCRAP YARD

80
Standardize
81
Toyota Plant in Japan
82
Work Place Organization (WPO)
83
Example – Initial Cleaning
84
White Tags Operator Red Tags Maintenance
85
Inspect & check for:
Abnormalities
• Loose or Missing Nuts, Washers, Bolts
Safety
• Missing, Broken or Damaged Parts
• Frayed wires
• Wear of Sliding Surfaces
• Slip hazards
• Play, Looseness, Sagging, Excessive • Trip hazards
Movements
• Warpage, Deformation, Misalignments Hard to access areas
• Rust & Other Surface damage • Hard to reach lubrication ports
• Leaks, Splattering • Hard to see gages
• Vibration, Shaking
• Unusual Sounds, Abnormal Heating Areas of improvement
• Unusual Smell & Discoloration • Tools not in designated area
• Check Belts, Chains, Couplings, • Hoses not on a proper hanger
Conveyors
• Check for Excessive Noise
• Check for Excessive Heat
• Check for Dirty Filters
• Check for Fluid Levels
86
• Check Gages for Pressures
Inaccessible & Hard to Reach Areas
“Anything that inhibits the efficient performance of

required actions must be addressed and resolved”
Lube
Point Lube Point
Chips
Example – Identification of Abnormalities
88
Example – Countermeasure
89
Cumulative No. of Tags
100
150
200
250
300
350
400
450
0
50
28/03/2005
16:45:00
0
331
29/03/2005
31
13:15:00 331
29/03/2005
16:45:00
105
331
30/03/2005
13:15:00
30/03/2005 131
16:45:00
171
31/03/2005
13:15:00
207
331 335 348
Cum Tags Put
31/03/2005
16:45:00
245
382
1/04/2005
10:30:00
Date & Time

268
15/04/2005
10:30:00
321
18/04/2005
OVERALL - Tagging Progress
12:30:00
382 384 384
Cum Tags Removed
350
23/05/2005
12:30:00
401
368
30/05/2005
12:30:00
421
376
Abnormality identification and correction
90
5 Why – Source of contamination
Problem: Oil Coolant is Leaking from the Machine, Onto the Floor.
Q. Why is Coolant Leaking from the Machine, onto the Floor?
A. Oil is Splashing Onto the Hood.
Q. Why is Oil Splashing onto the Hood?
A. Wheel Splash Guard is not on the Machine.
Q. Why is the Splash Guard not on the Machine?
A. Operators Elected not to use the Splash Guard.
Q. Why did the Operators Elect not to use the Guard?
A. Operators can not view the Work Piece with the Guard on the Machine.
Q. Why can’t the Operators view the Work Piece with the Guard on the
Machine?
A. The Guard is a Solid Black Shield that can’t be seen through.
Remedy and Prevention: Design and Install a new Splash Guard that is made
of a Translucent Material.
Reducing, Eliminating Oil leakage will reduce OH cost significantly

91
KAIZEN EXAMPLE
32 RUBBER
TVS OF 113
KAIZEN EXAMPLE
32 RUBBER
TVS OF 113
Cleaning Standards
TPM Provisional Cleaning Standard
Machine: No. 2729 Mazak SQT15 Lathe Date: 10/06/03 TPM Provisional Cleaning Standard
Machine: #45 Agathon 250 PA-Plus Date: 9/10/03
2 3
1
6
7 9 10
8
4
11
# Location Method Criteria Shift Mon Tue Wed Thu Fri Sat Sun
Shop Towell, X 1 2 1 2 1 2 1 2 1 2 1 2 1 2
and , or Spray
1 Front of Machine Bottle Free of grime, clean # Location Method Criteria Shift Mon Tue Wed Thu Fri Sat Sun
Shop Towell, X 1 2 1 2 1 2 1 2 1 2 1 2 1 2 Shop Towell, X 1 2 1 2 1 2 1 2 1 2 1 2 1 2

and , or Spray Right Side of and, or, Spray
2 Door Outside Bottle Free of grime, clean 7 Machine Cabinet bottle Free of Grime, Clean
Shop Towell, X 1 2 1 2 1 2 1 2 1 2 1 2 1 2
Shop Towell, X 1 2 1 2 1 2 1 2 1 2 1 2 1 2
and , or Spray
Back of Machine and, or, Spray
3 Door Inside Bottle Free of grime, clean
8 Cabinet bottle Free of Grime, Clean
Shop Towell, X 1 2 1 2 1 2 1 2 1 2 1 2 1 2
and , or Spray Shop Towell, X 1 2 1 2 1 2 1 2 1 2 1 2 1 2
4 Control Panel Bottle Free of grime, clean Electrical Cabinet and, or, Spray
9 AC Unit bottle Free of Grime, Clean
X 1 2 1 2 1 2 1 2 1 2 1 2 1 2
Inside Turning Wash Down Wash down chips Shop Towell, X 1 2 1 2 1 2 1 2 1 2 1 2 1 2
5 Center Hose and grime. Electrical Cabinet and, or, Spray
10 Doors bottle Free of Grime, Clean
Shop Towell, X 1 2 1 2 1 2 1 2 1 2 1 2 1 2
and , or Spray Shop Towell, X 1 2 1 2 1 2 1 2 1 2 1 2 1 2
6 Top of machine Bottle Free of grime, clean
Left Side of and, or, Spray
11 Machine Cabinet bottle Free of Grime, Clean 94
Lubrication Standards
TPM Provisional Lubrication Standard
TPM Provisional Lubrication Standard
Machine: No. 2729 Mazak SQT15 MS Lathe Date: 10/06/03
Machine: No. 2729 Mazak SQT15 MS Lathe Date: 10/06/03
3
2
4
1
5
# Location Method Criteria Daily Wkly 30 Day 60 Day 90 Day 6 Mo Who

# Location Method Criteria Daily Wkly 30 Day 60 Day 90 Day 6 Mo Who
X
X
1 Automatic Lubricator Mobil DTE24 Fill to High Limit Chip Conveyor Gear Gearmaster
3 Box 80/90 gear oil Drain and refill.
X
X
Chip Conveyor Pillow Mobil XHP 222
1 Automatic Lubricator Remove top Clean suction screen 4 Block Bearings Special Grease 2 Pumps
70% Distilled
Drain, clean tank, X X
Water and 30%
suction filter, magnet Mobil Long Life Drain, clean tank,
2 Hydraulic Unit Benz HP 68 and refill. 5 Spindle Coolant Unit Coolant suction filter and refill.
95
Example – daily CLIT of Stenter
96
Eliminate/ Improve
Inaccessible & Hard to Access Areas
Before Before Before
After After After

One Point Lesson
IMPORTANT NOTE
1. TRAINER HAS TO MAINTAIN A SEPARATE
REGISTER WITH VENUE & LIST OF PEOPLE
TRAINED IN ABOVE OPL
2. THE OPL FORMAT (HARD COPY) TO
BE SENT TO WCM DEPT BEFORE 25TH OF
EVERY MONTH FOR SIGNING
3. THE DEPT SHOULD MAINTAIN THE EDUCATION
RECORD NUMBER AND DULY FILL THE SAME
IN OPL SHEET ABOVE
4. A MINIMUM OF ___ OPLs REQUIRED
EVERY MONTH
5. OPL SHOULD BE HUNG AT THE EQUIPMENT
MENTIONED ABOVE FOR ATLEAST ONE MONTH
6. ALWAYS PREFER TO USE VISUAL INDICATORS
LIKE PHOTOS IN BEFORE AND AFTER SCENARIO
7. USE OF SYMBOLS X and √ IS A MUST IN
KEYPOINT /WHY AREA OF HOW TO DO AND
HOW NOT TO DO
8.ONLY IF THE TRAINING IS GIVEN AND
RECORD MAINTAINED PROPERLY THE OPL
WILL BE ACCEPTED FOR THE MONTH
9. THE REGISTER SHOULD HAVE THE
DETAILS LIKE S.NO,DATE,OPL REF NO ,
NAME OF EMP'S,SIGN OF EMP'S & VENUE OF
TRAINING
98
Plant TPM Board
99
MTBF KAIZEN
Co. Logo, Name
TOGETHER WE EXCEL TVS RUBBER

MTTR KAIZEN

Step 4 - Identify Skills Required
• Focus on Operator’s skills
– Each facility needs to identify specific skills required by Operator
• Lubrication
• Fasteners (Screws, Nuts, Bolts & Washers)
– Enhance Operator’s knowledge & skills
• Equipment inspection and maintenance
– Expand the scope of routine inspection performed by the
operators
• Lubrication checks
• Equipment monitoring
• Promote systematic inspection of equipment
– Enhance preventative maintenance
• In the hands of the person operating the equipment
Make sure appropriate skills are transferred

Note: be careful with critical tasks that require special education !
e.g. electric, high pressure (hydraulics), …
Identify Skills Required
• Focus on Maintenance skills
– Identify specific advanced training needed for Maintenance
• Requires specific or advanced skills
• Timely & effective
• To perform preventive maintenance
– Pneumatics, Hydraulics, Electrical Systems, Drive
Systems
• To perform predictive maintenance
– Vibration Analysis
– Acoustical Emission Monitoring
– Thermography (Temperature Sensing)
– Oil Analysis
– Liquid Penetrant
– Radiographic, Eddy Current Testing
– Megohmmeter
– High Speed Video Photography
– Ultrasonic Testing
– Computerized Maintenance Management Systems
103
Develop Equipment competent
operators
TRAINING ON 7
MODULES
104
Step 4 Example - Inspection Guidelines “Drive Systems”
IMPORTANT: Conduct general inspection in accordance with safe operation
procedures; include inspection items in written standards and make sure
everyone adheres to the standards.
 Make sure all rotating parts are provided with covers, that they are safe and
easy to inspect.
 Make auditory and vibratory checks while machine is running being careful
to observe all safety rules and regulations. Conduct other inspections after
you have confirmed that equipment has stopped moving.
 Systematically inspect drive systems using the attached checklist as a
guideline.
 Document all abnormalities found on your Abnormality Summary Sheet.
Repair as many abnormalities as you can and prepare work orders for the
ones that maintenance will have to repair.
 Be sure to consider and address the causes of all of the abnormalities you
find.
 Attach non-reversible thermo-labels of an appropriate temperature range to
drive motors; check visible output of shaft to insure shaft is turning.
 Mark or label the direction of rotation near mechanism or on cover.
 Install labels on all drive covers identifying types, and lengths, of chains
and/or belts under cover.
 Check for places where lubrication is needed: Has oiled ever been changed
in drive box gear cases? Does oil need to be added to gear drive boxes?
Do reduction gears need to be oiled? Have all grease points for cam
followers, pillow block bearings, conveyor chain, etc., been greased?
Step 4: General Inspection Guidelines “Drive Systems” (Continued)
V-Belts And Woven Or Flat Rubber Belts – Check For:
 Cracks, splitting, oil residue or excessive wear
 V-belts hitting bottom of pulley grooves
 Tensile strength adequate
 Tension of multiple V-belts uniform
 Any non-standard belts in use
 Damage to lacing on woven belts
 Damaged, or loose, drive pulleys
Roller Chains – Check For:

 Insufficient lubricant between pins and bushings
 Poor meshing due to stretched chains or worn sprockets
 Check master links and master link clip for proper installation and damage
Shafts, Bearings, Keys, And Couplings – Check For:

 Overheated, vibrating, or noisy bearings due to bent or off center shafts, loose
bolts, lack of lubrication, etc.
 Play in bosses due to loose keys or set screws
 Axial wobbling or loose clamping bolts on flange couplings
Gears, Speed Reducers, And Brakes – Check For:

 Excessive noise, heat, or vibration due to worn gears
 Oil levels normal; max/min levels indicated on gauges
 Oil leaks; oil volume at correct level
 Brakes operating correctly
 Any safety covers in contact with rotating parts
 Any missing teeth, collapsing or breakage of conveyor rollers or rubber

Example – Training aid : Cut Models
107
Conduct both Classroom and On the Job Training
• Training Topics Are Selected Based on the

Site’s Needs
• TPM Teams Develop the Training Material
30% • Training Is Provided One Topic at a Time
• Implementation Is Reinforced Through
Classrom Practice
On the Job • Training Material Is Regularly Updated
70% • Training Should be Repeated for
Reinforcement
108
Operators Need to Know -
What, Why, How
• Functions of Individual Mechanisms and Each Part
of Equipment
– Operators Need to Understand How a System Functions
– They Should Be Able to Explain the Problem to
Maintenance
• What Are the Critical Checkpoints; What Are Commonly
Occurring Problems
– Operators Need to Understand What Kinds of Problems
Can Occur, Why They Occur and How Serious the Impact
Can Be.
Operators Need to Know -
What, Why, How continued ...
• Operators Need to Be Able to Recognize an Abnormal
Condition Utilizing Their Four Senses
• Operators Need to Know What Action to Take When They
Encounter an Abnormal Condition
• Operators Need to Know How to Prevent or Respond to
Problems Safely & Effectively
• Operators Need to Develop Methods for Making Inspections
Easy and Error Free
• Operators Need to Know How to Use Visual Controls to
Assure Correct Operation and Inspection
LEVEL 5 - Perform and Enhance
Autonomous Inspection Standards
Objective
• 100% Safe – Risk Finder
• Reduction of the unplanned system downtimes
• Raising of the competitiveness through improved machine availability &
system efficiency
• Established autonomous maintenance
Machine, Workplace, Area Worker, Supervisor, Maintenance

Full adherence to Cleaning, Lubircation and Transfer of maintenance tasks
Inspection Plans visible Work in Teams for continuous improvement on
Monitor Machine downtime / efficiency data machine availability & system efficiency
Monitor Spare Parts Management Team defines suitable measures to continuously
improve the OEE & TPM key metrics
Standards, Metrics
Define objectives, Training
Identify targets for improvement for TPM Prepare Training material Level 5
activities & TPM Metrics Conduct Training on Level 5
111
TPM Metrics
• Effective monitoring system
– Visible
– Reacting to data
– Monitor progress easily
Goal FY15
- 20%
+ 10%
- 10%
<2%
< 25%
<0,25
Level 5 Activities
• Review All Tasks With Maintenance to Resolve Any

Inconsistencies Between the Maintenance Department
and Operators
• Ensure That All Equipment Improvement Activities Have
Been Incorporated Into the Standards
• Ensure That up to Date Standards Are Placed in All the
Autonomous Maintenance Manual
Level 5 - Overview
• Jointly Operators, Maintenance and Engineering Must

– Study the Machine’s Operations to Ensure a
Complete Understanding of All of the Functions
– Standardize All Documentation
– Ensure That All Operators Are Fully Trained on
Machine’s Operation
– Improve and Simplify Machine Operations
– Mistake-proof Machine Operations
Step 6 - Standardization
ACTIVITIES
 Re-examine Step 1 to 5.(Progress in Model M/c’s)

• Extend Visual Controls to all Elements and Processes.
• Review and Improve Work Instructions.
• Review and improve Final Check Sheet.
32 RUBBER
TVS OF 113
Level 6 – Enhance & Sustain Standards for
Process Stability
• Introduce a systematic approach to develop visual controls
& build Quality into the process
• Promotes High Visibility in the Workplace
– All Standards Are Visible
– Areas of Responsibilities Are Clearly Defined
– Errors Are Easily Prevented or Detected
• Enhance visual controls to impact quality
• Analyze & improve
– What is critical to quality?
• Tools introduced
– Capability Studies
– FMEA
– Error Proofing
– Six Sigma
Visual Control Examples - Gages
Use Autonomation
to stop producing
another defect part
117
Example – Visual Management
118
Areas of Visual Control Opportunities
Materials/Process/Object
 Contents/quantity in storage and transport units
 Quantity in production unit (lot size)
 Date of process completion, product delivery
 Production sequence - where last - where next
 Process priority FIFO
 Method, frequency and results of inspection
 Designation of long - waiting material
 Deadline and individual assigned to dispose of defective or long waiting material
Storage Space
 Quantity of work in process
 Maximum allowable in storage
 Separate space for conforming and non-conforming material
 Establish methods for placement and stacking
 Means of regulating use (FIFO)
Equipment/Safety
 Schedule stop or breakdowns
 Workload of major equipment for next period
 Routine equipment maintenance procedure
 Maintenance routing for tools, fixtures, measuring instruments
 Routine measure for minor repairs parts and adjustments
 Location of frequently used tools
Quality/Productivity
 Daily defect reports
 Daily production output
 Scrap results
 Actual results compared to monthly schedule
Step 7 – Full AM
• Trained Teams Throughout the Plant

– Strengthen & consolidate
• Commitment is demonstrated from every level
• Continue to Standardize Improvement Activities
• Implement Results to All Other Equipment / Areas
• Make Progress Per the Master Plan
• Continues to Build Operator’s Diagnostic and Maintenance
Skills
• Ownership from everyone
– Taking initiative to make improvements
• Shop floor employees take responsibility for Basic
Maintenance
– Decision making
120
Voice of Operators
• I can inspect all the parameters available.
• I can identify abnormalities.
• I can classify the abnormalities related to failure, defect
and safety.
• I can do why-why analysis for fuguais.
• I can develop countermeasures for the abnormalities.
• I can revise the inspection standards.
• I can balance my work to regular and JH activities.
121
Managers Model Machine
122
Managers’ model machine - Concept, Idea
• “The key to the establishment and development of the basic
TPM plan is ensuring the support of the plan’s priorities and
activities by the top management who drive it forward. The
most important point is how well the top and middle managers
recognize the necessity for and future value of TPM
activities.” ( Takahashi and Osada )
• One of the TPM tools to educate managers on Autonomous
Maintenance methodology and to demonstrate the benefits of
Autonomous Maintenance implementation is the Manager’s
Model.
• During the Manager’s Model, the site management team
engages in an Autonomous Maintenance project.
123
Managers’ model machine - Concept, Idea
• Managers trained during the Manager’s Model become the
leaders of the subsequent Autonomous Maintenance Pilot
Teams that continue Autonomous Maintenance proliferation in
specific work areas.
• “Many times a company will embark on a TPM journey to
have it fail because it was not supported at a high enough
organizational level or management failed to follow the
manager’s model of experiential tops down management
involvement and participation.” ( Gardner )
• The Manager’s Model teams develop individual Autonomous
Maintenance skills, train leaders for Autonomous Maintenance
teams and demonstrate the effectiveness of Autonomous
Maintenance implementation.
124
Objectives
1. Change employee attitudes ( foster positive attitudes ) about
TPM.
2. Demonstrate the power of TPM implementation.
3. Prove and improve the TPM implementation process.
4. Show the results of effective teamwork.
5. Test the water – experiment with TPM methodologies.
6. Identify and address initial barriers to TPM implementation.
7. Build the local TPM policies and procedures.
8. Plan further TPM rollout and supporting infrastructure.
9. Prove that TPM can be implemented successfully.
10. Develop and provide tools, procedures, and infrastructure for
further TPM activity.
125
Selection of Machine and activities
1. The best candidate is non-constraint ( excess production
capacity ) equipment with a history of unreliable performance.
2. Activities on the Model machine by team of Sr Managers,
Leaders –
- Initial Cleaning
- Identify Abnormalities : Unfulfilled basic condition ( Missing
screw ), Minor Flaws ( Broken sheet ), Unsafe place ( Loose
wire, No guard ), Unnecessary and Non-urgent ( excess wire),
Sources of contamination ( Oil leak from O ring ), Hard to
access ( Hard to clean an area, do maintenance ), Quality
defect source ( worn out tool, foreign material ).
- Put abnormality tags and track closure
126
Managers’ Model Machine activities
3. Develop Countermeasures for Abnormalities, Hard to access

and Sources of contamination.
4. Establish Standard for Cleaning, Lubrication, Inspection,
Tightening. Develop Visual control.
5. Develop and implement Effective General Inspection for the
equipment and bring machine to target / ideal condition.
6. Develop Operator Training materials in Machine’s Function
and Controls. Conduct training.
7. Develop routine maintenance standards by operators.
Period : 1 year. All members to spend 45 Min. to 1 hour every day.

127
Manager Model Machine : SPM – 015
Example : OBSERVATION SHEET – TAG
DATES OF PROBLEMS TAG IDENTIFIED
RESPONSBILITY
SR. No. OBSERVATIONS IDENTIFIED SOLVED TARGET DATE No. BY
1 Electrical Problem -Open cable of work head 15-05-2016 27-05-2016 EMT 1 PSP
2 Work Head Cam Cover adjustable not present 15-05-2016 13/8/2016 MMT 2 DLP
3 Cutting oil Leakage from return oil pipe. 16-05-2016 27-05-2016 MMT 3 MSM
4 Oil Leakage - Hydraulic pipe lines 16-05-2016 07-06-2016 MMT 4 RPV
5 Safety Guard-left side of M/c operator 16-05-2016 17-05-2016 MMT 5 SGJ
6 Electrical wiring near Panel board 16-05-2016 28-05-2016 EMT 6 PSP
7 Heat exchanger Motor electrical wiring not proper 16-05-2016 28-05-2016 EMT 7 VVP
8 Front side of machine hydraulic pressure indicator dial not present. 16-05-2016 31-05-2016 EMT 8 DLP
9 Machine On/Off Switch not available 16-05-2016 31-05-2016 EMT 9 YPA
10 Oil leakage from Work head, hydraulic & cutting oil mix problem. 16-05-2016 25-06-2016 MMT 10 RPV
11 Wheel Guard for Oil flushing problem 16-05-2016 21-05-2016 MMT 11 PSP
12 Checking of heat exchanger capacity & leakage 17-05-2016 28-05-2016 MMT 12 SGJ
13 Cutting oil motor fitting on tank not proper 17-05-2016 10-06-2016 EMT 13 SGJ
14 Oil leakage in electrical panel-right side of the machine. 17-05-2016 28-05-2016 EMT 14 VVP
15 Cutting oil tank cover 17-05-2016 28-05-2016 MMT 15 SGP
16 Guard for dressing attachment to avoid oil flushing. 19-05-2016 28-05-2016 MMT 16 SGP
17 Auto dressing switch not working properly 19-05-2016 13/8/2016 MMT 17 YPA
18 Proper coolent flow on wheel for point grinding operation 19-05-2016 19-06-2016 MMT 18 PSP
19 Hydraulic oil pressure indicator dial not working 27-05-2016 29-05-2016 MMT 19 RPV
JUNE
20 job counter electronic indicator not working 01-06-2016 19-06-2016 EMT 20 HKD
21 Electrical panal board cover not proper for safety purpose 01-06-2016 05-06-2016 MMT 21 DLP
22 Not identification for front side electric board switches. 02-06-2016 11-07-2016 EMT 22 SGP
23 On/off switch not proper of machine lamp. 03-06-2016 19-06-2016 EMT 23 HKD
24 Not identification for front side hydraulic pressure knob 03-06-2016 13/8/2016 MMT 24 HKD
25 Not separte on/off connection for heat exchanger motor 07-06-2016 11-06-2016 EMT 25 PSP
26 Grinding wheel direction not shown flange 12-06-2016 19-06-2016 MMT 26 PSP
27 Oil filter not provided for cutting oil pipe 13-06-2016 15/8/2016 MMT 27 SGP
28 For job operation cycle on/off signal not available 13-06-2016 25/6/16 EMT 28 HKD
29 Front side pannel board of on/off switch not fitting proper 14-06-2016 15-06-2016 EMT 29 SGJ
30 Work head centre hight adjustment knob nut working 14-06-2016 19-06-2016 MMT 30 PSP
31 Not required extra motor for heat exchanger 16-06-2016 16-06-2016 MMT 31 PSP
32 No identification for left side oil tank and oil inlet cap is loose. 19-06-2016 19-06-2016 MMT 32 MSM
33 Limit switch of cam open oil inside. 19-06-2016 19/6/16 MMT 33 YPA
34 Oil level indicator not proper of left side oil tank 19-06-2016 25/6/2016 MMT 34 PSP
35 Oil leakage in Dressar attachment 19-06-2016 10-07-2016 MMT 35
128
MSM
Target Metrics for Managers’ Model Machine
1. Correction of Abnormalities, Hard to access, Sources of

contamination in %
2. Reduction of Breakdown Hours
3. Increase MTBF
4. Defect reduction
5. Improve OEE
6. Cost reduction – Energy, Oil, Spares and Consumable
7. Total Financial Benefit : Increase in Output + Cost Saving
129
Maintenance Costs Traditional View
Cost
Optimal Maintenance
Commitment
130
Maintenance Costs Full Cost View
Cost
Total costs
Full cost of
breakdowns
Preventive
maintenance
costs
Optimal
Maintenance
Commitment
131
Constraint management
132
Constraint
• Definition - the most important limiting factor that stands
in the way of achieving a goal or a level of performance
desired.
• In manufacturing, the constraint is often referred to as a
bottleneck which determines the maximum capacity of a
system.
• The Theory of Constraints takes a scientific approach to
improvement. It hypothesizes that every complex system,
including manufacturing processes, consists of multiple
linked activities, one of which acts as a constraint upon
the entire system (i.e. the constraint activity is the
“weakest link in the chain”).
133
Constraints
• Any system can produce only as much as its critically
constrained resource
Constraint
60 units 70 units 40 units 60 units

Per day Per day Per day Per day
Maximum Throughput = 40 units per day
134
Internal Constraints
• Internal constraints may include:
– capacity of particular machines or workstations;
– transportation bottlenecks in the production process;
– ability of the production management team to manage
certain production processes;
– ability of the production planning team to schedule/allocate
production efficiently;
– incorrect assumptions about maximum capacity
– Unable to hire right talent
135
External Constraints
• External constraints may include:

– availability of sufficient raw materials;
– availability of labor or managers in a particular location;
– brand awareness of the company’s products;
– distribution channels for the company’s products.
136
Core concept
• The core concept of Constraint management is that every
process has a single constraint and that total process
throughput can only be improved when the constraint is
improved. A very important corollary to this is that spending
time optimizing non-constraints will not provide significant
benefits; only improvements to the constraint will further the
goal (achieving more profit).
• Thus, it seeks to provide precise and sustained focus on
improving the current constraint until it no longer limits
throughput, at which point the focus moves to the next
constraint.
137
Throughput
• The rate at which the system generates money through

sales. (Or, the money coming into the organization.)
• Building inventory is not throughput
• Only $ generated by the system get counted; e.g., raw
materials and purchased parts are not throughput.
• T = Selling Price - Materials
138
Steps of Constraint management
Identify Identify the current constraint (the single part of the process
that limits the rate at which the goal is achieved).
Exploit Make quick improvements to the throughput of the constraint
using existing resources (i.e. make the most of what you
have).
Subordinate Review all other activities in the process to ensure that they
are aligned with and truly support the needs of the constraint
Elevate If the constraint still exists (i.e. it has not moved), consider what
further actions can be taken to eliminate it from being the
constraint. Normally, actions are continued at this step until the
constraint has been “broken” (until it has moved somewhere
else). In some cases, capital investment may be required.
Repeat Once a constraint is resolved the next constraint should
immediately be addressed. This step is a reminder to never
become complacent – aggressively improve the current
constraint…and then immediately move on to the next
constraint.
139
Identify constraint
• In this step, the manufacturing process is reviewed to identify the constraint. A simple but
often effective technique is to literally walk through the manufacturing process looking for
indications of the constraint.
Item Description
WIP Look for large accumulations of work-in-process on the plant floor. Inventory
often accumulates immediately before the constraint.
Expedite Look for areas where process expeditors are frequently involved. Special
attention and handholding are often needed at the constraint to ensure that
critical orders are completed on time.
Cycle Time Review equipment performance data to determine which equipment has the
longest average cycle time. Adjust out time where the equipment is not
operating due to external factors, such as being starved by an upstream
process or blocked by a downstream process. Although such time affects
throughput, the time loss is usually not caused or controlled by the
starved/blocked equipment.
Demand Ask operators where they think equipment is not keeping up with demand. Pay
close attention to these areas, but also look for other supporting indicators.
The deliverable for this step is the identification of the single piece of equipment that is
constraining process throughput.
140
Identify the constraint
A company or system is like a chain so, if the goal is to
increase the capacity of the chain, strengthening any link
other than the weakest is a waste of time and effort. In order
to identify the constraint, the company should find a way to
measure the capacity of each process and then track actual
throughput against the capacity to determine where capacity
utilization rates are the highest.
Internal
• Process constraints External
 Machine time, space, people etc. • Material constraints
• Policy constraints  Insufficient materials
• No overtime, Union contract, Government • Market constraints
regulations etc.
 Insufficient demand
Paradigm - Deeply engrained beliefs ( Orders less than Capacity )
or habits. For example, the belief that “we
must always keep our equipment running to
141
lower the manufacturing cost per piece”.
Policy Constraint
• Policy constraints deserve special mention. It may come as a
surprise that the most common form of constraint (by far) is
the policy constraint.
• Since policy constraints often stem from long-established and
widely accepted policies, they can be particularly difficult to
identify and even harder to overcome. It is typically much
easier for an external party to identify policy constraints, since
an external party is less likely to take existing policies for
granted.
• When a policy constraint is associated with a firmly
entrenched paradigm (e.g. “we must always keep our
equipment running to lower the manufacturing cost per
piece”), a significant investment in training and coaching is
likely to be required to change the paradigm and eliminate the
constraint.
142
Current state VSM – Steering Bracket Mfg
Source – Learning to See

143
Yamazumi Chart
Takt time
144
Daily Output Trend
180
160
140
120
100
80
60
40
20
0
Day 1 Day 2 Day 3 Day 4 Day 5
Op1 Op2 Op3 Op4
145
Exploit the constraint
• Once the constraint has been identified, the next step is
to identify the key factors that determine the capacity of
that process, and which of those can be manipulated to
increase the capacity of the process.
• Obtain as much capability as possible from a

constraining component, without undergoing expensive
changes or upgrades.
• For example, it may be a shortage of machines, the

speed at which machines run, the amount of downtime
due to poor preventative maintenance, a shortage of
certain tools or spare parts, etc.
146
• In this step, the objective is to make the most of what you have –
maximize throughput of the constraint using currently available
resources. The line between exploiting the constraint (this step)
and elevating the constraint (the fourth step) is not always clear.
This step focuses on quick wins and rapid relief; leaving more
complex and substantive changes for later.
Item Description
Buffer Create a suitably sized inventory buffer immediately in
front of the constraint to ensure that it can keep operating
even if an upstream process stops.
Quality Check quality immediately before the constraint so only
known good parts are processed by the constraint.
147
Item Description
Continuous Ensure that the constraint is continuously scheduled for operation
Operation (e.g. operate the constraint during breaks, approve overtime,
schedule fewer changeovers, cross-train employees to ensure
there are always skilled employees available for operating the
constraint).
Maintenance Move routine maintenance activities outside of constraint
production time (e.g. during changeovers).
Offload Offload some constraint work to other machines. Even if they are
(Internal) less efficient, the improved system throughput is likely to improve
overall profitability.
Offload Offload some work to other companies. This should be a last
(External) resort if other techniques are not sufficient to relieve the
constraint.
The deliverable for this step is improved utilization of the constraint, which in turn
will result in improved throughput for the process. If the actions taken in this
step “break” the constraint (i.e. the constraint moves) jump ahead to Step Five.
Otherwise, continue to Step Three.
148
Subordinate and Synchronize to the Constraint
• At this stage, actually solving the constraint should be a
top priority.
• This includes overcoming any emotional resistance also
to solving the constraint, including any incorrect
assumptions by managers that prevent the constraint
from being solved.
• Consequently, strong leadership will often be required at
this stage so that any internal resistance to solving the
problem can be overcome.
• The non-constraint components of the system must be
adjusted to a "setting" that will enable the constraint to
operate at maximum effectiveness.
149
Subordinate and Synchronize to
the Constraint
• In this step, the focus is on non-constraint equipment. The primary objective
is to support the needs of the constraint (i.e. subordinate to the constraint).
Efficiency of non-constraint equipment is a secondary concern as long as
constraint operation is not adversely impacted.
• By definition, all non-constraint equipment has some degree of excess
capacity. This excess capacity is a virtue, as it enables smoother operation
of the constraint.
Item Description
Upstream Upstream equipment has excess capacity that ensures that the
constraint buffer is continuously filled (but not overfilled) so that the
constraint is never “starved” by the upstream process.
Downstream Downstream equipment has excess capacity that ensures that material
from the constraint is continually processed so the constraint is never
“blocked” by the downstream process.
150
Subordinate and Synchronize to
the Constraint
Some useful techniques for this step
Item Description
DBR Implement DBR (Drum-Buffer-Rope) on the constraint as a way of

synchronizing the manufacturing process to the needs of the constraint.
Priority Subordinate maintenance to the constraint by ensuring that the constraint
is always the highest priority for maintenance calls.
Sprint Add sprint capacity to non-constraint equipment to ensure that interruptions
to their operation (e.g. breakdowns or material changes) can quickly be
offset by faster operation and additional output.
Steady Operate non-constraint equipment at a steady pace to minimize stops.
Operation Frequent inertial changes (i.e. stops and speed changes) can increase wear
and result in breakdowns.
The deliverable for this step is fewer instances of constraint operation being
stopped by upstream or downstream equipment, which in turn results in improved
throughput for the process. If the actions taken in this step “break” the constraint
(the constraint moves) jump ahead to Step Five. Otherwise, continue to Step Four.
151
Elevate Performance of the Constraint
• In this step, more substantive changes are implemented to “break”
the constraint. These changes may necessitate a significant
investment of time and/or money (e.g. adding equipment or hiring
more staff). The key is to ensure that all such investments are
evaluated for effectiveness.
Item Description
Performance Use performance data (e.g. OEE metrics plus down time
Data analytics) to identify the largest sources of lost productive
time at the constraint.
Top Losses Target the largest sources of lost productive time, one-by-
one, with cross-functional teams.
152
Elevate Performance of the Constraint
Item Description
Reviews Implement ongoing plant floor reviews within shifts to identify tactical
actions that will improve constraint performance.
Setup Reduction Target the largest sources of lost productive time, one-by-one, with
cross-functional teams.
Updates/Upgrades Evaluate the constraint for potential design updates and/or
component upgrades.
Equipment Purchase additional equipment to supplement the constraint (a last
resort).
The deliverable for this step is a significant enough performance

improvement to break the constraint (i.e. move the constraint elsewhere).
153
Repeat the Process
• In this step, the objective is to ensure that the Five Focusing
Steps are not implemented as a one-off improvement project.
Instead, they should be implemented as a continuous
improvement process.
Item Description
Constraint If the constraint has been broken (the normal case),
Broken recognize that there is a new constraint. Finding and
eliminating the new constraint is the new priority
(restart at Step One).
Constraint If the constraint has not been broken, recognize that
Not Broken more work is required, and a fresh look needs to be
taken, including verifying that the constraint has been
correctly identified (restart at Step One).
This step also includes a caution…beware of inertia.
Remain vigilant and ensure that improvement is ongoing and continuous.
154
Drum, Buffer, Rope
Buffer
60 70 40 60
Rope Constraint
(Drum)
155
Visual understanding – one more diagrams
156
Drum, Buffer, Rope
Focusing Steps of TOC
Cash?
Supply? Demand?
Customer/
Suppliers 10 12 8 11 10 Consumer
Capacity ?
Step 1 Step 2 Step 3 Step 4
Identify the Decide how Subordinate Elevate the
system to exploit everything to system
constraint system this decision constraint
constraint Potential for
constraint
100% 100%
elevation
100% Protective Capacity
Murphy/Unknown Causes New
constraint
Potential level Overproduction/rework
elevation
Starvation/Blockage
of exploitation Downtime 50%
New level of rules
50% 50%
Current level Current level of constraint
constraint of constraint exploitation
New constraint
exploitation exploitation exploitation rules
Drum, Buffer, Rope
• Drum-Buffer-Rope (DBR) is a method of synchronizing production
to the constraint while minimizing inventory and work-in-process. It
is a method to exploit the constraints in a production system.
• Drum - This is the constraint itself since it sets the drumbeat (pace)
for the other processes. Also, the drumbeat signals the upstream
operations what to produce and tells the downstream operations
what to expect. The speed at which the constraint runs sets the
“beat” for the process and determines total throughput.
• Buffer - This is the stockpile of WIP in front of the constraint. This is
the level of inventory needed to maintain consistent and highest
possible production from the constraint. It ensures that brief
interruptions and fluctuations in non-constraints do not affect the
constraint. Buffers represent time, the amount of time (usually
measured in hours) that work-in-process should arrive in advance of
being used to ensure steady operation of the protected resource.
The more variation there is in the process the larger the buffers
need to be.
158
Drum, Buffer, Rope
An alternative to large buffer inventories is sprint capacity
( intentional overcapacity ) at non-constraints. Typically there are two
buffers:
- Constraint Buffer (immediately before the constraint; protects the
constraint)
- Customer Buffer (at the very end of the process; protects the
shipping schedule ).
• Constraint Buffer is expressed as ‘Time Buffer’.
• Rope – It is a signal generated by the constraint indicating that
some amount of inventory has been consumed. This in turn triggers
an identically sized release of inventory into the process. The role of
the rope is to maintain throughput without creating an accumulation
of excess inventory. Limitations placed on production in upstream
operations which are necessary to prevent flooding the constraint
with excess work-in-progress (WIP) which are above its capacity.
159
Drum, Buffer, Rope
• DBR system is a planning system that meets throughput
expectations while managing inventory and operating expenses.
• The execution system is called “Buffer management”
• DBR implies that speed of the workflow through the production floor
and reduction in WIP to the minimum consistent with reliable
promise dates are more important than local efficiencies.
• In Made to stock systems it is work to the performed by CCR
( Capacity Constraint Resource ) to meet all customer Requirements
that fall in given time period.
• Size of time buffer is not directly related to a work center’s capacity.
Instead, it’s related to the transfer of work within the process. Time
buffers are management artifice specifically designed to help
production managers retain control of on-time deliveries.
• Time buffers are function of uncertainty in the system,
including human errors, the effect of Murphy’s law, fluctuations
in demand, and their impact on wait time. 160
Drum, Buffer, Rope
• Time Buffer represents additional lead time allowed, beyond the
required setup and Process times, for materials to flow between two
specified points in the product flow.
• Two specified points are material release (gating) and receipt of
finished goods in either warehouse or shipping
• Production lead time = Sum of process times and setup times +
Time buffers
• Time buffers protect the shipping schedule from variability
161
DBR and Waste reduction
• Overproduction avoided because DBR is “pull” system
• Inventory minimized because only buffer at constraint
• Transportation reduced because “unbuilt material”
doesn’t move
• Processing waste minimized because “unbuilt material”
• Unnecessary Motion decreased because don’t build
unneeded
• Waiting is eliminated at the constraint –only place that
counts
• Defects avoided because of “small lot”, non
conformance, and corrective action
Fundamentally, Don’t Build Until Needed

162
DBR Benefits
• A proven method to*:

 Reduce Lead times an average of 70%
 Reduce inventory an average of 49%
 Reduce Operating Expenses
 Improve on time delivery performance an average of 44%
 Increase Revenue an average of 63%
 Better control
• DBR delivers ALL of these results AT THE SAME TIME.
163
Breaking down capacity
Excess capacity over and above
Productive and protective capacity
Resource capacity in excess of what is
required to protect throughput
Protective capacity is capacity needed to restore

Buffers to their ideal state after a disruption
Non-constraints resources need protective capacity to rebuild buffers in front of

Capacity
The constraint and also at shipping to ensure that throughput is not compromised
Productive capacity is capacity equal to the constraint’s

Capacity- the ability to produce the number of units that The
constraint can produce
It can also be defined as the resource capacity required to produce the
agreed Output of the system
Protective capacity is the most vital element of DBR because if there is

Insufficient protective capacity, buffers cannot be refilled leading to possible
Starvation by upstream stations and blocking by downstream stations
Next actions
• Select, plan and implement actions, practices, tools from

step 2 to 4.
• Not all at a time – decide that will give us more than 10%
higher output from the bottleneck machines, processes.
• Use Constraint management worksheet. Collect data,
plan for improvement.
165
Capacity Analysis Worksheet
166
Capacity Analysis Worksheet
167
Benefits of Constraint management
• Fast improvement ( Result of focusing all attention on one

critical area – the system constraint )
• Improved capacity ( Optimizing the constraint enables more
product to be manufactured )
• Reduced lead times ( Optimizing the constraint results in
smoother and faster product flow )
• Reduced inventory ( Eliminating bottlenecks means there will
be less work-in-process )
• Increased profit
168
Kaizen
• KAI + ZEN
• Change for Good
• Continual Improvement
Objectives
• To improve the Operational Efficiency
• To reduce Cost
169
What is Kaizen
• Kaizen is continuous improvement carried out by a person or small
group of persons in his / her / their area of day to day work.
• Mr.Masaaki Imai of Japan invented this concept.
• Originally a Buddhist term, Kaizen comes from the words, "Renew the
heart and make it good." Therefore, adaptation of the Kaizen concept
also requires changes in "the heart of the business” & corporate culture.
• It is a ‘way of life’ philosophy that every aspect of our life deserves to be
constantly improved.
• As opposed to the western brand of pragmatic “ why-fix-it-if-it-ain’t-
broke” philosophy, Kaizen extends a more optimistic philosophical view
: “Everything, even if it ain’t broke, can be made better”.
170
Who Should Do Kaizen
 Everybody has a defined role

 Everybody’s role is equally important for organizational
excellence in performance
 Person who does the job knows the best
Hence……
Kaizen has to be done by everyone across the organisation
171
WHY KAIZEN ??
1. Emphasize common sense approach
2. Total employee involvement
3. In all processes, activities
4. Zero or negligible involvement of money !!
5. Not always required to get top management approval
6. Through ‘kaizen’ initiative, we would like to create platform for the
people to showcase their huge talent that they possess,
contribute toward the growth of the organization which will secure
our future and get recognized and rewarded for their contribution.
7. We would like to see that each individual can take pride of his /
her achievement.
8. Doing good job / performance and getting recognition /
appreciation is a natural human instinct, applicable for all age
group.
172
Questions to generate Kaizen Ideas
• Can I reduce strain in the operation ?
• Can this improvement be applied elsewhere ?
• Is there an alternative way to do it ?
• Can this loss be reduced ?
• Can this quality, parameter be increased ?
• How can I identify the defect at source ?
• What are all the non value adding activities, operations ?
• Can I reduce variations ?
• Can this be done in a faster, cheaper, safer & easier way ?
Prioritize – Based on Company Lost cost Matrix data > Major, Medium, Minor
Kaizen Goals for 7 Major Losses
Loss Category Goal Suggested Measures
Learn equipmemt and part mechenisms.
Zero.
Failure Learn how to analyse causes.
Zero for all equipment and facilities.
Study corrective and predictive maintenance.
Minimize. Review and standardize work.
Set Up Shortest Possible time. Common use of jigs, tools.
Single-step set up. Learn SMED, single touch operation.
Zero Analyze adjustment items by reasoning.
Adjustment Adjust to produce Non-defective Improve pecision and rigidity of equipmenmt,
right from the beginning, without trial parts and jigs.
Minimize.
Cutting blade / tool and
Reduce changes by extending Pursue machining theories.
Jig change
cutting blade/ tool life.
Zero.
Cutting blade / tool and
Adjust to produce Non-defective Pre-setting.
Jig adjustment
right from the beginning, without trial.
Study impacts of thermal displacement.
Minimize.
Start-up Pursue fluctuation factors for various
Reduce to zero or to PPM.
conditions.
Zero. Determine quantitatively.
Minor Stoppage
Zero for all equipment and facilities. Identify, analyse and eliminate minor defects.
Zero.
Reduce difference with design Review machining conditions.
Speed
specifications to zero. Study rigidity of equipment and jigs.
Pursue theoretical machining speed. JIPM, 1994
Minimize. Utilize PM analysis. 174
Defect and Rework
Reduce to zero or to PPM. Clarify standards and review criteria.
Promote Kaizen culture
• Leadership Kaizen walk, monthly presentation
• More credit to self implementation
• Less focus on money for a kaizen. Decide a reasonable policy.
• Create awareness that it is a platform to showcase your talent,
• Have quarterly and yearly highest Kaizens and Best Kaizen
award schemes – different criteria, overall.
• Promote Quality circle
• Internal competition
• Send best individuals and teams to participate local, national
competition
Kaizen booklet – circulate to all employees
KAIZEN EXAMPLE
BEFORE BOLT FIXING ELIMINATION KAIZEN AFTER TOP PLATE NOT
FIXED TO PRESS
TOP PLATE
FIXED TO PRESS
BALL PIN FIXED

IN TOP PLATE
BALL PIN FIXED FOR EJECTOR
IN 2ND PLATE LIFTING
FOR EJECTOR
LIFTING
2ND PLATE
FIXED TO TOP
TOP PLATE FIXED WITH PLATEN BY BOLTS PLATE
TOP PLATE NOT FIXED WITH PLATEN BY
BOLTS
ACTIVITY TIME
Time in
Secs
MOULD CHANGE TOTAL
TIME
700 Time in
Secs
600 542
1000
500 900
800 689
400
700
300 600
0 500
200
147
400
300
100
200
0 100
Before After 0
Before After
177
TVS RUBBER
Another Kaizen format
Suggested Kaizen format
KAIZEN - Example
Co. Logo, Name
180
Kaizen event
• A Kaizen event is a team activity aimed at rapid use of WCM
methods to eliminate Operation waste and losses in a
particular area.
• It is well planned and structured to enable quick, focused
discovery of root causes and implementation of solutions.
• Events typically last 5 days. Though successful events are
planned for 1 to 3 days. These shorter period events are
narrowed down to smaller area, scope, problem. They usually
work well after longer kaizen events have achieved major
breakthroughs in the selected areas.
• Kaizen events or blitzes can be held periodically to make
focused changes in the workplace and for that a line or cell or
a segment of production, function may have to be shut down
while the change is made.
181
Kaizen event
• To plan a kaizen event, an area is selected, a problem is chosen, a
baseline is determined & an improvement target and measurements are
established. Leader, coordinator and team are selected, trained and
timeframe for the event is set.
• Plan advance production to cover the reduction during event.
• Don’t impose ideas on workers but involve them to create solutions.
Employee training is must.
• Kaizen event is scheduled for many improvements –
5S ( 3S and 3D ) Visual Management, AndOn
Defect reduction QFD - House of Quality
Value Stream mapping Kanban implementation
Layout plan and change Standard work, Line balancing
Set up reduction Any problem solving, transformation
FMEA Any loss reduction
182
Example – a 5 day Kaizen event schedule
• A rigorous 5 day Kaizen event needs to be planned for quick
actions and results. Following are the 5 steps to be followed for
a 5 day kaizen event. Example here :VSM > Layout change
Kaizen Event – Day 1 - Current State Documentation
• Agree project scope
• Produce current state Value stream map
• Calculate takt time
• Measure cycle time
• Measure and determine optimum staff requirements
• Capture work sequence
Kaizen Event – Day 2 - Current State Evaluation
• Design an optimum flow/process
• Optimize organization layout
• Establish effective operator sequences
• Agree and define measures and metrics
• Implement layout
183
Example – a 5 day Kaizen event schedule
• Kaizen Event – Day 3 - Characterize Future State Plan
Implementation
• Complete the layout implementation
• Test new area with existing workforce – amend as required
• Implement new layout
• Kaizen Event – Day 4 - Implement Future State
• Run Full production against layout
• Implement measures and metrics
• Document new process and standard work
• Kaizen Event – Day 5 - Operationalize Future State and
Debrief
• Align workforce and objectives
• Assess benefits
• New vs Old Cycle time and takt time
• Other measures as appropriate
• Conduct lessons learnt review with stakeholders
• 30 days Plan (balance actions, training etc) follow up review in 30 days
184
Single Page Kaizen event format
Project Title: Ideal State ( Long Term): Key
Project
Champion: Leader: Text
Facilitator: Co-Facilitator: Future State ( 3-6 months) ( Improve ): Picture
Team:
Start Date:
End Date:
Depatment /
Location:
Key Tracker #
Process
Project Charter - Problem Statement ( Define ):
What is the problem? When & where does the problem occur? What is the extent
& impact of the problem? How do you know?
SMART Goals/Objectives
(1)What should be achieved with the Project? What level of performance is
expected? (2) What is the timing required to achieve the goal? (3) What key
milestones and target dates are required? (4) What is the estimated financial
benefit? Opportunities:
Scope: ( Begin and end points, area of focus) Implementation Plan ( Control ):
What is the focus of the Project? Identify the starting and ending points of the No. Action Owner Start End Comments Status
process. What is outside the Project scope?
Secondary Goals/Metrics:
(1) What secondary Metrics needs to be maintained or improved
Benchmark/Better Practice/Lessons Learnt
(1) Has a benchmark been done, how do you know (Tracker No.)?
(Internal/External) (2) Are there any Lessons Learnt?
Customers
(1) Who are the Customers?
Current State ( Measure & Analyze ):
Metrics:
Issues Identified: (Kaizen Bursts)
Operational :
Financial : 185
Example - Kaizen event format
186
Workshop is very powerful because it is –
“Learning by Doing”
The workshop is about sharing knowledge and skills in

learn-by-doing exercise, the most effective way of
learning – learn the way people do their work in WCM
companies, yielding results that really make a
difference.
187
Supply Chain Initiatives
188
Cost Reduction in Supply Chain
• Create a spontaneous supply chain – able to pull
materials and parts on demand.
• Product line rationalization
• Standardization of parts variety
• Eliminate incoming inspection – develop self certified
suppliers. Supplier certification program.
• Institute dock to line deliveries
• Work with suppliers to improve OTD
• Develop few suppliers with high capability and reliability
– work with them.
• Work with suppliers to continually reduce total cost of
procurement, not just cost per unit ( Service, Quality,
Agility )
189
Cost Reduction in Supply Chain
• More e-Procurement
• Find opportunities to reduce Logistics cost, Packaging
cost.
• Look for more localization, import substitution.
• Better Supply planning to avoid expedites, premium
freight.
• Global sourcing, Hedging, Negotiation.
• Sourcing of better equipment, Tooling – Efficiency,
Accuracy, Life.
• Taking back used products from customers for RM inputs.
• Rate contract.
• Right Make-Buy decision.
190
Traditional Vs. e-Procurement Process
Traditional e-Procurement
Selection Selection
• Paper Catalogue • Designated employees given access
• Coordinate with Central Purchasing • On line catalogues access through PC
• Phone calls to vendor • Price / Term comparison across vendors,
including corporate discount
Requisition Approval
• Paper based • Approvals automatically routed to
• Copies of requisition forms sent through designated managers
internal mail • Payments made electronically
Approval Order Management, Billing and Reporting
• Expensive items move up approval chain • Automated PO generation
• Long delays, numerous follow-up phone • Automated reconciliation of requisition
calls / emails numbers and Pos
Order Management, Billing and Reporting • Real time Order tracking
• Paper based PO generated by hand • Accurate real time posting of purchase
• Faxed to suppliers and costs
• Phone call to confirm receipt
• Copies of PO sent internally
191
Benefits
• 50%-80% reduction in transaction cycle time.

• Improved Just-in-time materials delivery.
• 60%-90% savings in transaction costs.
• 5%-15% reduction in materials pricing.
• Virtually error-free system.
• Greater choice of suppliers.
• Improved predictability resulting in reduced inventories.
• Improved inter-departmental integration.
192
3M Case study
Before e-procurement
• 300,000 invoices a year for supplies at USD 120 each
• Processing time = 1 to 3 days with 30% rework rate
• 36% of purchases not in compliance with contracts
After e-procurement
• 2000 buyers purchase contracted goods from a group of
online suppliers
• Reduced transaction cost of about 70% to USD 40
• Internal cycle time reduced more than 95% to 1 hour
• 100% compliance with a near perfect error rate
193
e-procurement savings – some examples
• IBM : cost of generating PO reduced from USD 35 to 1 USD
• Raytheon : PO cost reduced from USD 100 to USD 3
• Aberdeen group : average transaction cost reduced from USD
107 to USD 30, lead time from 7.3 to 2 days
• Microsoft : reduced direct purchasing cost by 92%
• British Telecom : transaction cost reduced from USD 80 to
USD 8
• Wall street journal : Average paper based PO costs USD 150,
e-commerce PO USD 25.
Reduced Cost
Reduced Cycle time
Reduced Lead time
Reduced Inventory
Error free transaction, Paper less
Greater choice of suppliers
Reduced pricing option 194
ಧನ್ಯವಾದ
நன்றி
നന്ദി
ధన్యవాదాలు धन्यवाद
Thank you
આભાર
ਤੁਹਾਡਾ ਧੰ ਨਵਾਦ ধন্যবাদ
For any further clarification, question, reach out to us
195

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“Best Practices to

Achieve Competitive edge

Subrata Mitra Majumdar

Create Stabilize Improve

Standard Operations Tools are utilized to create

• Takt Time Calculation

• Calculated using available production time

Total Available Production Time Per Period*

*Time period units must be consistent (shift, day, week…)

• The factory is a 2-shift operation

Net Operating Time available:

480 minutes/time period (# hours/time period) X 60 minutes/hour

- 2(10) breaks( minutes)

- 4 clean up time (minutes)

- 0 set up time (minutes)

total = 456 available production minutes X 60 = 27360 Available Production Seconds

380 Customer Requirement (pieces)

Takt Time = 27360 Available Production Seconds

Takt Time = seconds/piece 13

– Observe the Operations and Break Into Small Elements

– Establish Lowest Repeatable Elapsed Time Per Element

Time for one Cycle 137 16

Documents process capacity per time period

One sheet per operator

• Operator Cycle Time (OCT):

Machine Cycle Time

Unload/ Load/ Machine Automatic Time

Operator Cycle Time

Current state data

• Step two : The next step is to create an operator balance

Step three : Next determine

Designing a Future state

• Continuous flow refers to producing one piece at a time with

TTT Process Time

Curtain Quantity Calculation:

SWIP = 2X Cycle Time of Monument Process

Incorporated when a monument process is required

1. In process layout 1. The flow of product 1. Manage multiple

6. A breakdown of one 7.Short Manufacturing 8. Exposes other

3.Process time is 3.Lack of flexibility: A 3. Right-sizing and

• Overhead view of the cell and operations

LATHE LATHE LATHE

• No Organization and PART FLOW

1 8 2.WIP kanban provides a place to put a completed

4. If one person is in the cell then:

40 1 8 80 Cell CTa =  operation times +  walk times

8 Operation time = Operator Cycle time

8 hours x 60 Min x 60 Sec = 63.9 units per day

Green : Cycle time, Black : Walking time

• WIP control : machine automatically stops when WIP

5 Example : The numbers beside the arrows is the

40 2 7 70 Cell CT = Max (Worker CT, Longest machine CT)

Black : Cycle time

8 hours x 60 Min x 60 Sec = 219.8 units per day

 If we implement flow the above situations can be

Objective and Reduce Set up time

Reduce batch size

Implement Supermarket Pull system