RED TAG Strategy

RED-TAGRED-TAG STRATEGYSTRATEGY

Achieving Excellence Through Achieving Excellence Through Japanese TechniqueJapanese Technique

5S5S

CONTENTSCONTENTS

IntroductionIntroductionRelation to 5SRelation to 5SSteps in the RED-TAG StrategySteps in the RED-TAG StrategyRED-TAG with ComputersRED-TAG with ComputersRED-TAG episodes: RED-TAG episodes: Laughing and learningLaughing and learning

Case study: The Strategy at a CompanyCase study: The Strategy at a CompanyPromoting RED-TAG StrategyPromoting RED-TAG StrategyReferences to use for ImplementationReferences to use for Implementation5 Keys to a successful implementation5 Keys to a successful implementation5 suggestions about the Implementation 5 suggestions about the Implementation

5S relation5S relation

5S5S represents 5 disciplines for maintaining represents 5 disciplines for maintaining a a visual workplacevisual workplace. These are foundational . These are foundational to Kaizen and a manufacturing strategy to Kaizen and a manufacturing strategy based "Lean Manufacturing" concepts. 5S based "Lean Manufacturing" concepts. 5S is the starting point for improvement is the starting point for improvement activities that ensure a company’s survival. activities that ensure a company’s survival.

5-’S’5-’S’

SEIRISEIRI

SEITONSEITON

SEISOSEISO

SEIKETSUSEIKETSU

SHITSUKESHITSUKE

SORTSORT

SET IN ORDERSET IN ORDER

SHINESHINE

STANDARISATIONSTANDARISATION

SUSTAINSUSTAIN

SEIRISEIRI ((sorting and clearingsorting and clearing))Eliminating unnecessary itemsEliminating unnecessary items

Can you find any unnecessary items?Can you find any unnecessary items?

In fact, there are many unnecessary items In fact, there are many unnecessary items in any factory.in any factory.

By unnecessary, we mean things which By unnecessary, we mean things which are needed for present productionare needed for present production

Have a good round in your own workplaceHave a good round in your own workplace

Unnecessary ItemsUnnecessary Items

Unusable thingsUnusable thingsUnsold productsUnsold productsUnused thingsUnused thingsSuperfluous itemsSuperfluous itemsDefective productsDefective productsIdle/ obsolete/ equipmentIdle/ obsolete/ equipmentExcessive assembly partsExcessive assembly partsExcessive work in progressExcessive work in progressAdvance supplies by vendorsAdvance supplies by vendorsCauses of inconvenience Causes of inconvenience

The 5 disciplines The 5 disciplines

1. 1. SORTSORT - Remove all items from the - Remove all items from the workplace that are not needed for current workplace that are not needed for current operations. Leave only the bare essentialsoperations. Leave only the bare essentials2. 2. SET IN ORDERSET IN ORDER – Arrange needed – Arrange needed items so that they are easy to find, use items so that they are easy to find, use and put away and put away 3. SHINE3. SHINE – Sweeping, wiping-off – Sweeping, wiping-off equipment, painting and assuring equipment, painting and assuring everything stays clean everything stays clean

4. STANDARDIZE4. STANDARDIZE – Method to maintain – Method to maintain the first 3 disciplines (sort, set-in-order, the first 3 disciplines (sort, set-in-order, shine)shine)

5. SUSTAIN5. SUSTAIN – A top-down support of the – A top-down support of the ongoing 5S process ongoing 5S process

RED-TAG Strategy is the 1RED-TAG Strategy is the 1stst step in step in implementing the 5S disciplines.implementing the 5S disciplines.

The 5 disciplines… The 5 disciplines…

RED TAG STRATEGYRED TAG STRATEGYRed Label No.______

Item_________________

Quantity______________

Location_____________

Date_______Clearance Date________

Purpose______________

____________________

____________________

Sopwith Ltd..

ARMSTRONG

B.S.A.

Hillman

IntroductionIntroduction• Companies have realized that a little cost, Companies have realized that a little cost,

these efforts can bring big rewards such as these efforts can bring big rewards such as substantially reduced inventories, Higher substantially reduced inventories, Higher productivity, Improved clerical efficiency, etc.productivity, Improved clerical efficiency, etc.

• Attaching a RED Tape can be done by Attaching a RED Tape can be done by anyone. Hence Companies are readily anyone. Hence Companies are readily implementing it.implementing it.

• It is a “Visual Organization” and hence is It is a “Visual Organization” and hence is effective than any other means.effective than any other means.

More…More…

It is never too bad, even if the factory is full of It is never too bad, even if the factory is full of RED TAG items. In fact is has to be that way.RED TAG items. In fact is has to be that way.

Red in Japanese means “DIRT”.Red in Japanese means “DIRT”.

It is not always easy to identify what ‘It is not always easy to identify what ‘WASTEWASTE’ is, ’ is, in a factory. Factory people are used to treating in a factory. Factory people are used to treating unnecessary things like vouchers, equipment, unnecessary things like vouchers, equipment, inventory, etc as personal possessions and get inventory, etc as personal possessions and get sentimental about them. Hence it is important to sentimental about them. Hence it is important to identify and determine what really is needed and identify and determine what really is needed and what is not. what is not.

1414 11

WasteWaste

Anything other than the minimum amount of equipment, materials, parts, space, and worker’s time which are “absolutely essential” in adding value to the product.

Eight Deadly Wastes

• Over Production

• Product Defects

• Inventory

• Excess Process

• Transportation

• Excess Motion

• Waiting

• Under-utilizing People

MUDA

InventoryMotion

OverProcessing

Correction

OverProduction

Waiting

Transportation

UnusedCreativity

BenefitsBenefits

It is a Simple Method that brings out ills in It is a Simple Method that brings out ills in the working of factory and enables the the working of factory and enables the Management to lower inventories, to easily Management to lower inventories, to easily and efficiently utilize the factory space and and efficiently utilize the factory space and to access the material with less effort. to access the material with less effort.

Steps in the RED-TAG StrategySteps in the RED-TAG Strategy

Step-1: Step-1: Launch the RED-TAG ProjectLaunch the RED-TAG Project

Step-2: Step-2: Identify RED-TAG targetsIdentify RED-TAG targets

Step-3: Step-3: Set RED-TAG CriteriaSet RED-TAG Criteria

Step-4: Step-4: Make the RED-TAGSMake the RED-TAGS

Step-5: Step-5: Attach the RED-TAGSAttach the RED-TAGS

Step-6: Step-6: Evaluate the RED-TAG TargetsEvaluate the RED-TAG Targets

Step-1: Launch the Step-1: Launch the RED-TAG ProjectRED-TAG Project

Optimally RED Tagging should happen every Optimally RED Tagging should happen every day, at least for a few minutes.day, at least for a few minutes.Implement each campaign as a distinct red-tag Implement each campaign as a distinct red-tag project with a period of 1-2 months.project with a period of 1-2 months.The person with final responsibility for the The person with final responsibility for the project should be a top manager i.e. the project should be a top manager i.e. the company president, the manufacturing chief, or company president, the manufacturing chief, or the factory superintendent.the factory superintendent.JIT consultants should help the factory JIT consultants should help the factory employees understand how to identify what employees understand how to identify what items are not needed.items are not needed.

Step-2: Identify Step-2: Identify RED-TAG targetsRED-TAG targets

The main targets are inventory, equipment and The main targets are inventory, equipment and space in the manufacturing division.space in the manufacturing division.Inventory can be classified in to Ware house Inventory can be classified in to Ware house inventory and In-process inventory.inventory and In-process inventory.Further, Ware house inventory can be classified Further, Ware house inventory can be classified into material, parts, products, and so on.into material, parts, products, and so on.We must be careful to target all inventory that We must be careful to target all inventory that lacks a specific location which other wise piles lacks a specific location which other wise piles up on the factory shelves.up on the factory shelves.In the clerical division, the targets must be the In the clerical division, the targets must be the unnecessary paperwork that piles up in the unnecessary paperwork that piles up in the desks, lockers and the like.desks, lockers and the like.

Step-3: Set Step-3: Set RED-TAG CriteriaRED-TAG Criteria

The most difficult thing about RED tagging is The most difficult thing about RED tagging is differentiating what is not required from what is.differentiating what is not required from what is.The most common criterion is the next months The most common criterion is the next months production schedule. What is not needed for the production schedule. What is not needed for the next month is hauled away.next month is hauled away.Another criterion can be based on the next Another criterion can be based on the next week’s schedule if the factory is more stringent week’s schedule if the factory is more stringent on this.on this.Another possible criterion is based on the last Another possible criterion is based on the last months used items list. Those which have not months used items list. Those which have not been used will be Red tagged.been used will be Red tagged.

Step-4: Make Step-4: Make the RED-TAGSthe RED-TAGS

The material used to make them does not The material used to make them does not matter. All they have to do is to Demand matter. All they have to do is to Demand Attention.Attention.

It should serve well to reflect on details like It should serve well to reflect on details like category, name, quantity, reasons, category, name, quantity, reasons, division, code, date, etc.division, code, date, etc.

Should be usable repeatedly.Should be usable repeatedly.

Step-5: Attach Step-5: Attach the RED-TAGSthe RED-TAGS

It must be made sure that the team that does the It must be made sure that the team that does the tagging understands the criterion for tagging understands the criterion for differentiating before being sent to the factory.differentiating before being sent to the factory.

It is better if they not from the factory which other It is better if they not from the factory which other wise would hinder the tagging due to sentimental wise would hinder the tagging due to sentimental resistance.resistance.

All the tagging has to be done quickly and swiftly All the tagging has to be done quickly and swiftly before moral comes down. preferably with in 1-2 before moral comes down. preferably with in 1-2 days. days.

Step-6: Evaluate Step-6: Evaluate the RED-TAG Targetsthe RED-TAG Targets

It is very important to evaluate the Red It is very important to evaluate the Red Tag targets. This helps in deciding what to Tag targets. This helps in deciding what to do with the items and how they are ware do with the items and how they are ware housed or disposed.( unnecessary items)housed or disposed.( unnecessary items)

The goal is to finally get the “unneeded” The goal is to finally get the “unneeded” items list.items list.

Classification and trimming of Classification and trimming of Usable ItemsUsable Items

Things constantly in use – Place closer to Things constantly in use – Place closer to the machinethe machine

Things constantly in use weekly – place in Things constantly in use weekly – place in work areawork area

Seldom used, but still needed Quarterly – Seldom used, but still needed Quarterly – Place in Store.Place in Store.

RED-TAG with ComputersRED-TAG with Computers

The present trend of IndustryThe present trend of Industry::

Wide variety, small-lot production with Wide variety, small-lot production with short delivery, short life cycleshort delivery, short life cycle

Thus huge information is needed by Thus huge information is needed by factories in managing each product.factories in managing each product.

Information handling is the key and thus Information handling is the key and thus computers are indispensable.computers are indispensable.

RED-TAG with Computers…RED-TAG with Computers…

When doing RED- tagging, it is important When doing RED- tagging, it is important that information about items to be tagged that information about items to be tagged be known.be known.

I.e.. Specific accounts of how parts and I.e.. Specific accounts of how parts and products are affected by this reduction of products are affected by this reduction of inventory is needed.inventory is needed.

Also needed is about their Also needed is about their disposaldisposal in in each each factory divisionfactory division..

RED-TAG with Computers…RED-TAG with Computers…

RED-TAGS indicate a factory’s RED-TAGS indicate a factory’s superfluous items. Thus they can be superfluous items. Thus they can be viewed as data.viewed as data.

Thus details like item category, item name, Thus details like item category, item name, reasons for Red-tagging, company reasons for Red-tagging, company division, etc. can be fed to a computer.division, etc. can be fed to a computer.

This data has to be fed to a computer in This data has to be fed to a computer in the form of unique codes.the form of unique codes.

What to do with Items identified by What to do with Items identified by Red tagRed tag

Give 1 week time to other depts.Give 1 week time to other depts.Shift to central Red Tag area if not usable in the Shift to central Red Tag area if not usable in the coming week, to an area cordoned off specially coming week, to an area cordoned off specially for the Red tag program. for the Red tag program. Shift to Value yard if not used for a monthShift to Value yard if not used for a monthTake disposal section, circulate to other units, Take disposal section, circulate to other units, offer to vendorsoffer to vendorsObtain write off sanctionObtain write off sanctionRepair / Recondition where necessary Repair / Recondition where necessary Take to stores after repairTake to stores after repair

FormsForms

---------------------------------------------------------------------------------------------------------------

DESCRIPTION

CELL/AREARED TAG LOCATOR

TAG NUMBER

LOCATION

3. LONG TERM STORAGE 6. OTHER__________________

ACTION TAKEN DATE

DISPOSITION REQUIRED1. DISCARD 4. REDUCE INVENTORY2. IN CELL STORAGE 5. SELL/TRANSFER

TAG DATE:ITEM NAME:QUANTITY:REASON TAGGED:

3. FINISHED MAT'L 7. FURNITURE4. TOOLS 8. OFFICE MAT'L

1. RAW MATERIAL 5. SUPPLIES 9. BOOKS/MAGAZINES2. WIP 6. EQUIPMENT 10. OTHER

CELL/AREA RED TAG TAG NUMBER

CATEGORY

Item Disposition Guidance

Directions•Determine the category each tagged item belongs

•Determine required action, record on tag and Unneeded Items Log

•Take actionActionCategory

Defective •Return to supplier

•Throw away

•Repair

Used about once per week •Store in area

Obsolete •Sell

•Hold for depreciation

•Give away

•Throw away

Scrap •Remove to proper location

Trash / garbage •Throw away

•Recycle

Used less than once per month •Store where accessible in plant

Seldom used •Store in distance place

•Sell

•Give away

•Throw away

Unneeded in this area •Remove to proper location

Use unknown •Find out use

•Remove to proper location

Used at least once per day •Carry with you

•Keep at place of use

Red Tag Checklist

Directions•Examine all items in each category

•Red tag every item that may not be needed

•Enter a when a category is inspected

Search the walls, boards, etc.Items hung on walls

Bulletin boards

Signboards

Other

Raw materials

Supplies

Parts

Work in process

Finished products

Shipping materials

Look for unneeded material / supplies

Look for other unneeded itemsWork clothes

Helmets

Work shoes

Trash cans

Other

Floors

Aisles

Operation areas

Work Stations

Corners, behind/under equipment

Stairs

Small rooms

Offices

Loading docks

Inside cabinets and drawers

Search these spaces

Machines

Small tools

Dies

Jigs

Bits

Conveyance equipment

Plumbing, pipes, etc.

Electrical equipment

Wire, fixtures, junction boxes

Look for unneeded equipment

Look for unneeded furnitureCabinets

Benches and tables

Chairs

Carts

Other

Search these storage placesShelves

Racks

Closets

Sheds

Other storage areas

Unneeded Items Log#Unneeded Item Date Reason for Tagging Notes / Disposition

Workplace Scan

To identify workers, processes, and functions of the area. To plan the Workplace Scan.

Directions:

Plan the Workplace Scan by identifying who is responsible for each step and when completion is expected

•Draw an area layout

•Draw a material spaghetti chart

•Complete 5-S & Safety audits

•Take photos

•Create a workplace scan display

Scan Step Who When

Target Area Name:

Define the boundaries of the target area and tape it off.

State the primary purpose of the target area.

Record the functions of the target area.

Workplace Audit Checklist

Sustain

Stick to the rules

Area workers have not had 5-S training

5-S is not performed routinely

Personal belongings are not stored neatly

Standard Work is not available or up to date

Daily 5-S audits are not performed

Sort

Distinguish between what is needed and not needed

Unneeded equipment, tools, furniture, etc. are present

Unneeded items are on walls, bulletin boards, etc.

Items are in aisles, stairways, corners, etc.

Unneeded inventory, supplies, parts, or materials are present

Safety hazards (water, oil, chemical, machines) exist

Set in Order

A place for everything and everything in its place

Correct places for items are not obvious

Items are not in their correct places

Aisles, workstations, equipment locations are not identified

Items are not put away immediately after use

Height and quantity limits are not obvious

Cleaning, and looking for ways to keep it clean and organized

Floors, walls, stairs, and surfaces are not free of dirt, oil, and grease

Equipment is not kept clean and free of dirt, oil, and grease

Cleaning materials are not easily accessible

Lines, labels, signs, etc. are not clean and unbroken

Other cleaning problems of any kind exist

Shine

Standardize

Maintain and monitor the first three S’s

Necessary information is not visible

All standards are not known and visible

Standard Work doesn’t exists for all cleaning and maintenance jobs

All quantities and limits are not easily recognizable

Items cannot be located in 5 seconds

BEFORE AFTER

Note: Check all that apply, plan countermeasures.

Set in Order Inspection Sheet

Directions

FurnitureCabinets

Benches and tables

Chairs

Carts

Shelves

Racks

Materials / supplies / inventoryRaw material

Supplies

Parts

Work in process

Finished product

Shipping materials

Cleaning supplies

Other items

Charts, graphs, etc.

Books, checklists, etc.

Bulletin boards

Signboards

Pens, pencils, rulers, etc.

Work clothes

Helmets

Work shoes

Trash cans

Personal items

EquipmentMachines

Small tools

Dies

Jigs

Bits


Cleaning equipment


Fixtures, junction boxes, etc.

Computer equipment

•Inspect all items in entire area

•Move items to proper place

•Enter a when a category is inspected

•Search all items in the area for cleaning needs

•Use this with the Initial Cleaning Plan

•Enter a when a category is completed

Shine Inspection Sheet

Directions

Surfaces of equipment and furnitureMachines


Plumbing, pipes, sinks


Fixtures, junction boxes

Chairs

Other itemsMaterials and supplies

Trash cans

Bulletin boards

Labels and signs

Small tools

Hoses, cords, tubing, etc.

Other

Large Surfaces

Ceilings

Aisles

Work Stations

Corners, behind/under equipment

Stairs

Loading docks

Walls

Doors

Pillars and posts

Floors

Other

Carts

Shelves

Racks

Inside equipment / furniture

Machines


Closets

Drawers

Cabinets

Sheds

Tool boxes

Storage bins

Initial Cleaning Plan

Target Area

•List tasks and complete the columns belowDirections

Location Who Materials and Tools Needed

WhenTask

Current Score:Previous Score:

1 2 3 4

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

Sustain

ScoreDate:Scored By:

Set In Order

Shine

Stabilized

5S # Check Item

Are work clothes clean?

Have improvements been made to prevent things from getting Have rules been established for maintaining the first three of 5S's?

Have improvements been made to facilitate jig and tool handling?

Trash, water or oil on floors?

Are machines covered with shaving and oil?

Have the workers developed the diciplines required for maintaing the first four of 5S's?

Has 5S become a way of life?

Are all safety signs easily readable?

Are safety guards being used properly?

Has time been set aside for sustaining?

Has management and maintenance provided all of the needed support to sustain?

Is the angle and intensity of lighting adequate for the work being performed?Are workers wearing dirty or oil stained work clothes?Instead of cleaning up the messes, have people found ways toavoid making messes?

Are the first three of 5S's being maintained?

Do operators clean their machines while checking them?

Is there a person responsible for overseeing cleaning operations?Do operators routinely sweep floors and wipe equipment without being told?Is the room/are ventilated well enough to be clear of heavy dust?

Are white/yellow lines or other markers used to clearly indicate walkways and storage area?

Are jigs and tools arranged more rationally to facilitate picking them up and returning them?

Are the floors ket shiny, clean and free of debris?

Are the machines wiped clean?

Are safety guards in place?

Time and Structure

Is there an support?

Are there any unused machines or other equipment around?Are there any unused jigs, tools, dies or similar items around?Is it obvious which items have been marked as unnecessary?

Are notices kept clean and orderly?

Are shelves and other storage area marked with indicators and addresses?Do the shelves have labels showing which items go where?Are the minimum and maximum allowable quantities indicated?

Are safety signs posted?

Have specific cleaning task been assigned?

Has clealiness become a habit?

Is there proper ventilation?

Is there proper lighting?

Is equipment inspection combined with equipment maintenance?

Are there location indicators?

Are there item indicators?

Are there quantity indicators?

Are walkways and in-process inventory identified?

Area Name:

Does the inventory or in-process inventory include any unneeded materials or parts?

Unneded materials or parts.

Sort

Description

Unneded machines or other equipment.

Unneeded jigs, tools or dies?

Have unneeded items been marked?Are display boards well organized?

RED-TAG episodes: RED-TAG episodes: Laughing and learning-Laughing and learning-11

Twenty years of InventoryTwenty years of Inventory::A factory found, up on implementing the A factory found, up on implementing the Red tagging, a part which has been in Red tagging, a part which has been in store for 20 yrs.store for 20 yrs.

ReasonReason: somehow a wrong part name has : somehow a wrong part name has been assigned.been assigned.

LessonLesson: JUST AS WE WATCH FOR : JUST AS WE WATCH FOR MISSING PARTS, SO MUST WE WATCH MISSING PARTS, SO MUST WE WATCH FOR EXCESS INVENTORYFOR EXCESS INVENTORY

RED-TAG episodes: RED-TAG episodes: Laughing and learning-Laughing and learning-22

Twice Red TaggedTwice Red Tagged::

March was designated as Red tag month. March March was designated as Red tag month. March also being the month for audit, they feared it also being the month for audit, they feared it would look horrible to the auditors to see Red would look horrible to the auditors to see Red Tags stuck all over the place. Thus the Red tags Tags stuck all over the place. Thus the Red tags which have been stuck were removed and the which have been stuck were removed and the project scheduled to April.project scheduled to April.

LessonLesson: BE SURE THAT EVERYONE : BE SURE THAT EVERYONE COMPLETELY UNDERSTANDS THE RED TAG COMPLETELY UNDERSTANDS THE RED TAG STRATEGYSTRATEGY

Promoting Promoting RED-TAG StrategyRED-TAG Strategy

Establish REDTAG teamsEstablish REDTAG teams

Attach Red tagsAttach Red tags

Collect and Transport Unneeded and Collect and Transport Unneeded and Useless itemsUseless items

Store and Dispose of Unneeded and Store and Dispose of Unneeded and Useless itemsUseless items

Report and Follow up on Disposal ResultsReport and Follow up on Disposal Results

5 Keys to a 5 Keys to a successful Implementationsuccessful Implementation

Teach the importance of the 5S’sTeach the importance of the 5S’sBe sure that everyone understands what Be sure that everyone understands what organization meansorganization meansThe company President should lead the The company President should lead the RED-tag Promotion councilRED-tag Promotion councilHave the Red tags attached by people Have the Red tags attached by people with no direct relationship to the target with no direct relationship to the target itemsitemsEstablish and Use 5S PatrolsEstablish and Use 5S Patrols

5 suggestions about the 5 suggestions about the ImplementationImplementation

Suggestion-1Suggestion-1: IF IN DOUBT, RED TAG IT: IF IN DOUBT, RED TAG IT

Sugn-2Sugn-2: Finish Red tagging in one or two : Finish Red tagging in one or two daysdays

Sugn-3Sugn-3: Set a Target Number of Red tags : Set a Target Number of Red tags to be usedto be used

Sugn-4Sugn-4: Apply one Red Tag per item: Apply one Red Tag per item

Sugn-5Sugn-5: Tag Excessive Amounts of : Tag Excessive Amounts of Needed ItemsNeeded Items

Items identified by Red tagItems identified by Red tag

Create a RED tag zone in each section and Create a RED tag zone in each section and display itemsdisplay itemsGive 1 week time to other depts to use Red tag Give 1 week time to other depts to use Red tag items as needed.items as needed.Shift to central Red Tag area after 1 weekShift to central Red Tag area after 1 weekShift to Value yard after 1 monthShift to Value yard after 1 monthTake disposal section, circulate to other units, Take disposal section, circulate to other units, offer to vendorsoffer to vendorsObtain write off sanction and dispose materialObtain write off sanction and dispose materialRepair / Recondition where necessary Repair / Recondition where necessary Take to stores after repairTake to stores after repair

Documents

RED TAG Strategy