Lean & TPS

knowledge sharing program at

University of Sri Jayewardenepura

207-08-11
Content

• Company Introduction
• What is lean ?
• Lean History
• Toyota Production System ( TPS)
• Challenges
• Brief introduction to HEPS
• HEPS implementation
• Success Stories at Hexpol Plant in Sri Lanka

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HEXPOL AB

• Head Office is in Malmo, Sweden

• Listed in the Stockholm Stock Exchange
• Sales to more than 100 geographical markets

• Vision is to be a world number one or two in

all our strategic business areas..

• Working with longterm customer and financial

commitments
The HEXPOL Group

4,100 employees.
Annual turnover: US$ 1.3 Billion
42 Production units in 11 countries

HEXPOL AB

Wheels
Elastomeric
Stellana Compounds
PHE Gaskets
Sri Lanka,China,
Sweden and USA
 Elastomeric Product Range

Rubber Wheels For Casters Industrial solid tyres

Moulded products
What is Lean Management ?
• Lean Manufacturing – A way to eliminate waste and
improve efficiency in a manufacturing environment

• Lean focuses on flow, the value stream and

eliminating muda, the Japanese word for waste

• Lean manufacturing is the production of goods using

less of everything compared to traditional mass
production: less waste, human effort, manufacturing
space, investment in tools, inventory, and engineering
time to develop a new product
Mura is the waste of unevenness or inconsistency.
Mura creates many of the seven wastes and Mura drives Muda!
By failing to smooth our demand we put unfair demands on our
processes and people and cause the creation of inventory
and other wastes.

As an example is production processes where the manager is measured on monthly output,

the department rushes like mad in the final week of the month to meet targets, using up
components and producing parts not actually required. The first week of the month is then
slow due to component shortages and no focus on meeting targets

Muri is to cause overburden, by this we mean to give unnecessary stress to our employees
and our processes. This is caused by Mura and a host of other failures in our system such
as lack of training, unclear or no defined ways of working, the wrong tools, and ill thought
out measures of performance.
Lean History

9
Sakichi Toyoda – (Founder of Toyoda) Jidoka
Kiichiro Toyoda – 1935 Model A1 (Change to Toyota)
How Lean Production (Toyota Production System)
was born
■1937: Establishment of TOYOTA
■1950: E. Toyota and T. Ohno visited to Ford Factory

Problem of Japanese Car Market in 1950’s Concept of TPS

Market size in Japan was small,
But customer demand was very variety.
Small Lot Many
Variety Production
Difficult to lay off people. in 1 Line
Wage was increased along with people’s age.

Money shortage for investment High Efficiency Line

Difficult to buy the newest western machine Based on
Autonomic Activity
by Skilled Worker
GM, Ford started the business in Japan.

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Toyota Production System (TPS)

12
 Basic Way of Thinking of Lean
Production
1. Company Objective (All employees)
2. KAIZEN (Continuous Improvement)
3. Profit = Price – Cost
4. Move vs. Work
5. 7 Wastes

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Lean Organisation
Plant Manager

Section leader

Superviser

Team Leader

Team member

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15
 TPS leaning Points
The philosophy of TPS is to remove or minimize the influence of
all forms of waste
An important process learned during the USA trip was the Ford
Motor Company suggestion system. Eiji instituted the concept and
it is considered to be one of the major building blocks of the
Toyota Production System of continuous improvement
(Kaizen).

It is made up of soft or cultural aspects, such as automation with

the human touch autonomation and hard, or technical, aspects,
which include just-in-time, kanban, and production smoothing.

Each aspect is equally important and complementary.

 Cont. TPS leaning Points

Eiji & Taiichi Ohno credited to two concepts. (Kanban &

Continues improvement)
1. From Henry Ford’s Book Today and Tomorrow published in
1926 provided the basis of a manufacturing production system.
2. The supermarket operations in the United States observed
during a visit in 1956. The supermarket concept provided the
basis of a continuous supply of materials as the supermarket
provided a continuous supply of merchandise on the store
shelves.
Shigeo Shingo, a Quality consultant hired by Toyota, who
assisted in the implementation of quality initiatives; and
Edward Deming who brought Statistical Process Control to
Japan.
 Why TPS Fails ???? (Challenges)
• TPS has proven itself to be one of the most efficient
manufacturing systems in the world but although leading
companies have adopted it in one form or another, few have
been able to replicate the success of Toyota

• Becoming “Lean” is a commitment to a process and a

tremendous learning experience we should attempt to
implement Lean principles and practices into our organization.

• The TPS could not just copy the American automotive

industry, but needed to produce superior automobiles, and
do it with creativity, resourcefulness, wisdom, and hard
work.
Cont. Challenges
• The Principles and Practices are not easily to
implement, which many companies will attest too.
Implementation requires a commitment and
support by management, and participation of the
all personnel within an organization to be
successful.
• We couldn’t respond to the changing market.
Worst of all, the people working in our plants
couldn’t make things better, even though they
had plenty of good ideas, because they were
bogged down by the rigid, traditional structures
 Cont. Challenges
• One of the fundamental elements of TPS that management
must be fully committed to is the “customer-first”
philosophy. Typically, organizations envision the customer
only in terms of the person who purchases the final product
at the end of the process. TPS has a different view
• All departments realize their dual role: they are at once the
customers of the previous operation and the suppliers to
the next operation downstream.
• the entire organization shares problems and must
work together to ensure that a solution is found
• Positive attitude is essential in a TPS environment.
 Cont. Challenges
• Management must have a shop-floor focus
• All value-added activities start on the shop floor
• We are out there to help them do their jobs, not as part of a
command structure, bent on telling them what to do.
• The most common roadblock to the successful
implementation of TPS is the failure on the part of
management
• Company leaders lack the total commitment to, and
understanding of, TPS, that are essential to its adoption.
• TPS implementations fail is that managers try to implement
individual elements instead of the entire TPS approach. (Since
the elements of TPS are integrated and interdependent, any attempt to
implement TPS only partially is bound to produce very unsatisfactory
results).
 Cont. Challenges
• Greenhouse, where just the right combination of soil,
light, temperature, humidity, water and nutrients allow
plants to grow and flourish. If any one of these
elements is removed, the plants will weaken and
eventually die.

• TPS is an interlocking set of three underlying elements:

1. The Philosophical min-set,

2. The Managerial culture and
3. The Technical tools.
 Cont. Challenges
• The philosophical mind –set include a joint shop-floor,
customer-first focus, an emphasis on people first, a
commitment to continuous improvement or kaizen, and
a belief that harmony with the environment is of critical
importance.

• The managerial culture for TPS is rooted in several

factors, including developing and sustaining a sense of
trust, a commitment to involving those affected by first,
teamwork, equal and fair treatment for all, and finally,
fact-based decision making and long-term thinking.
 Cont. Challenges
• The Philosophical mind-set, the Managerial Culture and the
Technical Tools – must be in place and in practice for TPS to
truly flourish and provide the high-quality, high-productivity
results it is capable of producing

• The Human Dimension is the single most important element

for success.

• Management has no more critical role than motivating and

engaging large numbers of people to work together toward a
common goal.
Cont. Challenges
• Defining and explaining what goal is, sharing a path to
achieving it, motivating people to take the journey with us,
and assisting them by removing obstacles
• Shape the organization not through the power of will or
dictate, but rather through example, through coaching and
through understanding and helping others to achieve their
goals. This, I truly believe, is the role of management in a
healthy, thriving, work environment.
• The tools are important. TPS uses the technical elements,
such as kanban, just-in-time, small lot delivery, Jidoka or
quality in the process, heijunka or leveling of demand, visual
control and 5S or clean, orderly worksites, to manage the
day-to-day production system as efficiently as possible.
 Toyota Production System

Customer
Customerfocus
focus Philosophy
People first
People first
Kaizen
Kaizen
Environment
Environment

Long
Longterm
termthinking
thinking
- -Kanban,
Kanban,just-in-time,
just-in-time, Fact base thinking
Fact base thinking
Small lot delivery,
Small lot delivery, Team
Teamwork
work
- -Jidoka
Jidokaororquality
qualityininthe
the Sense
Sense ofThrust
of Thrust
process,
process, Commitment
Commitment
- -Heijunka
Heijunkaororlevelling
levellingofof
demand,
demand,
- -Visual
Visualcontrol
control People
- -55SS

Technology Management

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Case Study - Center on the people who add value

Before (1982) After (1985)

GM Closed the Fremont, • Productivity & quality doubled,
California Plant due to • exceeded all other GM plants
• Lowest Productivity • Drug and alcohol abuse
• Highest Absenteeism disappeared
• 1983 – Reopened as NUMMI • Absenteeism virtually stopped
(Toyota & GM) • Time to expand the plant
• Same work force
• White-collar jobs switch from
directing to support
• Small work teams trained to
design, measure,
• standardize and optimize their
own work

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 HEPS
Hexpol Engineered Production System
July 2015
Our Competitive Environment
• Today, we have professional customers with
increasing demands on quality and efficiency
• Our products offer limited opportunities for
differentiation vs competition
• Daily, we face global competition and we must be
world class in all processes to be the winner

• In June 2015, the Hexpol Management Team decided

to develop and launch the Hexpol Engineered
Production System across all units!
HEXPOL Vision

HEXPOL AB’s vision is to be a market leader,

ranking number one or two in selected
technological or geographical segments in
order to generate growth and shareholder
value.
Where HEPS fits in the business
concept
HEXPOL ENGINEERED PRODUCTION SYSTEM

Business
Business
Concept
Concept
• New Business
• New products
Growth
Growth • New Segment
• Market share
• Acquisition
•
Vision
Vision Mission
Mission •

•HEPS
Cost (Hexpol Engineered
Cost Production
efficiency
efficiency System)

• Sourcing
• Investment
utilization
What is HEPS?
• Eliminate losses and waste
HEPS a way of thinking.

• Robust, endurable and flexible system

Fantastic performances, from ordinary people, working in
excellent systems.

• Involves all employees

Hexpol is nothingelse but a team of people.
How we act daily

Results To meet the targets

Methods A Way of doing things

… A way of thinking
Values
HEPS House
Success Story @ EEC
 Key Success Factors
• Focused on Operational Excellence though HEPS
Tools

• Optimizing Efficiency Levels (Internal Compound Mixing)

• Bring down Product Cost, Product Design Cost

• Virgin to polymer blends/composites

• Re Engineering /Re Structuring of Organization

• PDCA Thought Structured meetings

• Strong networking with research institute and

Polymer Universities
Strong networking with research institutes
and Polymer Universities
Our Results…

National Awards
 Our Results…

PRI Cricket Tournament – 1st Runner up

“Daya Kulathunga “Champion Trophy – Champions 2015

Our hospitality for society…
”Coming together is beginning.
Keeping together is Progress
Working together is sucess ”

Henry Ford

Thank You!