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5/12/2014
1
OBEYA OPERATIONSOBEYA OPERATIONS
Tearing Down the WallsTearing Down the Wallsto See Problems and to See Problems and
Achieve Breakthrough PerformanceAchieve Breakthrough Performance
Sam MacPherson, Co-Founder, The Lean Leadership Academy™
(910) 217(910) 217--LEANLEAN
http://www.leanleadershipacademy.com/contact/
http://www.leanleadershipacademy.com
My Background with Obeya’sThe Green Beret Way
Because of the complexity of Special Operations missions, the need for Situational Awareness, Coordination, and Collaboration, Special Operations Units have been using the Obeya approach for years. Our Obeya are known as Operations Centers.
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Obeya a Way of LifeObeya a Way of LifeChief of Combat Readiness BranchChief of Combat Readiness Branch
Chief of Exercise BranchChief of Exercise BranchChief of Asymmetric Warfare PlanningChief of Asymmetric Warfare Planning
Director of Future Special Operations Plans Director of Future Special Operations Plans –– Task Force DaggerTask Force DaggerActing Chief of Staff, Training Branch US Army Special Forces CommandActing Chief of Staff, Training Branch US Army Special Forces Command
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What is an Obeya?What is an Obeya?
A Room with a A Room with a ViewView
Toyota Thailand
• First time visitors to Toyota’s Corporate HQ in Japan are surprised at the large open office areas and the lack of cubicles isolationism.
• The Obeya, or “The Big Room”, dates back to its early days of Toyota, in Japan.
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The Universe’s Most FamousThe Universe’s Most FamousObeyaObeya
The bridge of the Starship Enterpriseis an Obeya
NASA’s Johnson Control CenterNASA’s Johnson Control Centeraka “Houston”aka “Houston”
Another Famous Obeya
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The Vonage The Vonage “Generosity Officer”“Generosity Officer”on Breaking Down Wallson Breaking Down Walls
“Walls separate people Jose’!”Walls separate people, Jose !
Obeya “No Walls” Concept even in Popular Culture
Leadership Leadership at the Source at the Source
“TPS style improvement depends on the creative efforts of people led by managers and work teamefforts of people led by managers and work team leaders with extreme attention to detail in the execution of daily management techniques.”
“Having (a) proper awareness of problems and an extremely low tolerance for the current condition
i i d ”is a proper attitude.”
‐Isao Kato: Father of Standardized Work and Toyota’s Supervisor Leadership Development Program
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There is Always Room for KaizenThere is Always Room for KaizenIn Coordination!In Coordination!
• The Theory behind Obeya is based on a simple idea:“Dedicate Space and Time to Coordination and Problem Solving thenDedicate Space and Time to Coordination and Problem‐Solving, then
organizational barriers will be minimized.”
• The ability to maintain Proper Problem Awareness in Real‐time,– listen to Team‐member concerns,
– Collaborate to make discoveries, resolve problems together, accelerate leader and team‐member developmentteam member development
– We will reach our full potential, which is critical to a Lean Organization
• The Obeya promotes coordination, strategy and flexibility while leveraging the expertise and support of teammates from diverse areas.
• The Result: Effective solutions and actions that can be developed and implemented quickly.
ObeyaObeya Must Support Must Support Just in Time and JidokaJust in Time and Jidoka
‘I think the ideal situation of the Obeya should be the full integration of People and Data; it mustthe full integration of People and Data; it must mimics the flow of the process.
The Obeya utilizes the latest technology of human interface communication to promote ‘Just in Time’ in human processed information with Jidoka’s “Zero Defects Passed” considerations.’
Casey Ng
Retired General Manager
Toyota Motor Manufacturing Australia
Obeya Leader
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Why Establish an Obeya?Why Establish an Obeya?
TMCTMCGl b l ObGl b l Ob
Global ObeyaWhen developing a new vehicle, managers responsible for decision making in design, production engineering, and manufacturing gather in one place to shorten
Types ofTypes ofObeyaObeya
Toyota University
Obeya for Every LevelObeya for Every Level
Global ObeyaGlobal Obeya
Business
offices)
Business Obeya(Executive offices)Business Process Business Process
Layout ObeyaLayout ObeyaCentralized data collection, prioritizing and action planning
plead‐time through real‐time communications & simultaneous engineering
Business Obeya
Business Business Obeya(Mfg.)
Business Business Obeya(Sales)
Global Camry LaunchTMM Australia
Toyota University
Camry Global LaunchToyota Mfg. Australia
FocusObeya Focus
Obeya
Focus ObeyaFocus Obeya Project War
Rooms SQDC/PDCA A3 Problem
Solving Jishuken rooms
FocusObeya
Obeya(Engineering)
Toyota University
Toyota Jishuken Problem Study Team
TIEM
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What Most Obeya Have in CommonWhat Most Obeya Have in Common
Main Board(VP level) • Performance
• Gaps Only 3 layers
for required approval
Clear Objectives
Targets
ProjectObeya
Gaps
• Solution COAs
• Recommend‐ations
• Issues i i
Metrics
Connections
Team AObeya
Team BObeya
Team CObeya
requiring decisions (Only Two per team)
Large Complex ObeyaLarge Complex Obeya
• Large Open Office areas
• Accommodates dozens of team‐members
f
Toyota Motor Sales and Finance
• Manufacturing Operations
• Sales and Finance
• Design Engineering
• Manufacturing Engineering
Potential Issues:
• Risks being too formal and rigid
• Interoperability of IT between operations
• Sensory overload
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Obeya in Sales OperationsObeya in Sales Operations• Introduced by TMS VP Hiroaki
Sunakawa, “Can the Obeya concept work in Sales in the United States?’
• Follows a “Customer Focused Plan‐Do‐Check‐Act Cycle.
• The Obeya is organized to reflect the ownership lifecycle, beginning with the Voice of the Customer
• Reflects the Customer’s ExperienceToyota Motor Sales Thailand
ShoppingShopping
Toyota Motor Sales - NA
Product Design & Quality
Product Design & Quality
Sales and FinancingSales and Financing
Vehicle DeliveryVehicle Delivery
Service Warranty,
Maintenance
Service Warranty,
MaintenanceVoice of
TheCustomer
Obeya in Lean Product Obeya in Lean Product Development and DesignDevelopment and Design
• Collaboration here is critical
• Most projects are Front loaded
• At Toyota, Concurrent Planning does not allow for Delay – most IT tools not helpful
• Room Layout Follows a (CAP‐DO) flow
Check – Adjust – Plan – Do Cycle
• Visual Process Flow for Information
• Identify bottle necks and collaborate to implement Countermeasures
U P t it’ ith f l t li i t• Uses Post‐it’s with few colors to eliminate confusion and ensure meaning understood
• Allow only two issues a week per team –potential solution must accompany issues
• Ambiguity is not allowed in this type of Obeya
Red or Green; No Amber
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Product Design/Design Review Product Design/Design Review Process Layout ModelProcess Layout Model
SmallSmall‐‐Focused ObeyaFocused Obeya• Focused with a defined purpose
• Specific Projects
• Jishuken or Team room
• Problem analysis away from noisy gemba environment
• Limits group size by design
• Economical
• Closed rooms melt down barriers
• Encourages idea contribution
Gap Card Suggestions
Anyone in the Toyota organization can enter the Obeya and contribute a suggestion by filling out a red card or red Post‐it ® note. The purpose it to accept anyone’s input.
An obeya or department leader is assigned to address the Gap and only when the gap is closed is the Gap Card taken down from the Obeya wall.
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Focused Obeya PDCA & Focused Obeya PDCA & Problem Solving Process LayoutProblem Solving Process Layout
What Metrics Should Be in Obeya?What Metrics Should Be in Obeya?Only the Most ImportantOnly the Most Important
• Set Targets “State what you really need to accomplish without prejudice”accomplish without prejudice
• Prioritize Measures
• Top Five/Hot Five:
“If fail these measures will you will be fired?”
T k hi T k‐Takashi Tanaka
• Target – How can we? What can we do?
• Tie in Company Hoshin to Plant Hoshin to Shop‐floor Hoshin: Set SQDCPM KPI
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Establishing anEstablishing anObeya forObeya for
Operations and LogisticsOperations and LogisticsOperations and LogisticsOperations and Logistics
How to Build Your “Big Room”How to Build Your “Big Room”A Phased ImplementationA Phased Implementation
Approach for Your House of LeanApproach for Your House of Lean
Phase 5 Obeya
JustJust--InIn--TimeTime“Right part, right
amount, right place, right time”
JidokaJidoka“Intelligent Automation”
“Quality from the Source”(In-station Process Control)
“Make Each ProcessThe Customer”
“Make Problems Visible”
“Stop and notify about Abnormalities”“Error-Proof”
“Separate Man fromM hi ”
Takt-time:Produce at the Pace of
Sales“Continuous Flow”
“Pull System”In sequence of demandSmall lot sizes, frequent
Change-overs
Obtain a Profit and Grow by Increasing Customer ValueThrough the Elimination of Waste, Burden, and Fluctuation
Highest Quality - Lowest Cost - Shortest Lead Time
Phase 3 Obeya• Full SQDCPM• Organizational
Problem Solving• A3 Management
Phase 2 Obeya
Phase 4 Obeya• Deployment Focus• TPS Integration • External
Connections• Full SQDCPM
Phase 5 Obeya• Full Hoshin
Integration• Sales Obeya• Engineering
Obeya
Machine”
Leveled Production (heijunka) Kaizen Standardization
Stability and Reliability in Man, Machine, Methods, Materials
Change overs
Phase 1 Obeya• Process Stability• Work Standards• Schedule
AttainmentFocus
A3 Management• Flow Focus• Standardized
Work• TPM Integration• Level Production
Start with Visual Management foreach level of the House of Lean.
As you mature each level of “The House,” the nature of the Obeya
Evolves and Transforms.
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Operations CenterOperations Center
Gemba Kanri Plans For Zones and Value Streams
TPM Advan
cement P
la( g )
Quality Advancement Plan(Do it Right)
Voice of the CustomerQuality Delivery Price Service Innovation Growth
Safety Quality Delivery Cost Productivity Morale
Dashboard Hoshin , Kojo, and Baby A3
Plans g
d Production
Planning
10‐10‐10 Day M
aster
Month Sched
ule
ee day out
n Sched
ule
Obeya ModelObeya Model
(g
)Equipmen
t Relia
(Fix it Righ
t)an
(
)Joint Sales an
d(JSP) Team
))
30/60/90 Day
Master Sched
ule
10 day thre
Breakdown
) bility
)
Current Operations Production Status Board“Yamazumi Board”
Management Cadence Kami Shibai Visual Control Board
Dispatcher Operations
g(
)Counterm
easure
Progression (PDCA)
ANDON
Status
ANDON
Status
The Truth Telling RoomThe Truth Telling Room Open Visual meeting space and Office
Environment adjacent to senior executives desks
No Walls ‐ Direct Communications between customer service, production control lean supply chain/materialscontrol, lean supply chain/materials management/production engineering
PDCA Flow
Visual Connection to Hoshin
Production Status Board
Integrated with Andon System
Break Down Maintenance/Quality Dispatcher Systemp y
Extreme Problem Awareness and Urgency
Strong Leader in the Obeya Director
Cross‐functional Leadership Engagement
Visual 30‐60‐90 Day JIT Demand Planning
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Operations Center Obeya in ActionOperations Center Obeya in Action
Maintenance MgrMaintenance MgrAnd OperationsAnd Operations
Plant Plant
Center DirectorCenter DirectorAndon Status AwarenessAndon Status Awareness
Plant Plant Operations Manger Discussing Hourly Operations Manger Discussing Hourly
Production Status Update by Group Leader Production Status Update by Group Leader ith V l St M t Obith V l St M t ObQuality Manger And Quality Manger And
Scheduler at the GembaScheduler at the Gemba
with Value Stream Managers at Obeya with Value Stream Managers at Obeya Production Status BoardProduction Status Board
Single Minute Breakdown Single Minute Breakdown Response Team PDCA’s Red Response Team PDCA’s Red Zone response performanceZone response performance
Obeya Team conducts Obeya Team conducts PDCA daily to improve PDCA daily to improve
Obeya OperationsObeya Operations
Obeya Team prepares Obeya Team prepares to Go to the Gemba forto Go to the Gemba for
Red Zone Red Zone ConditionCondition
Example of Operations Obeya LayoutExample of Operations Obeya Layout
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Castle Metals AerospaceCastle Metals Aerospace
Paramount Operations
Los Angeles, CA
LEAN LEADERSHIPLEAN LEADERSHIPACADEMYACADEMY
Logistics ObeyaLogistics Obeya
Castle Metals Aerospace Castle Metals Aerospace
Los Angeles Los Angeles
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Background
M f f Ai f E i P V i ‘A• Manufacturer of Aircraft Engine Parts, Various ‘Aero Structure’ Components, Aircraft ‘Complex Subsystem’Components and Distributor of Exotic Alloys / Specialty Metals
• Castle Metals Aerospace Began ‘Lean’ Journey in January 2012
• Los Angeles was chosen as “Pilot Facility”Los Angeles was chosen as Pilot Facility• Distribution throughout Western U.S., Canada, Mexico, and Asia
• Compelling Need for ‘Cost Basis’ and Customer Service Improvement in Key Performance Metrics
Castle’s Business Need for Implementing Castle’s Business Need for Implementing Obeya in Sales, Warehouse, Traffic, and Obeya in Sales, Warehouse, Traffic, and
ManufacturingManufacturing
• Critical ‘End Use’ applications of our products:– Commercial & Business Airplanes: 737, 747, 767, 787, A320, p , , , , ,A350, G150, G450, G550, G650
– Defense: F‐35 JSF, F‐15, F‐18, C‐17, C‐130, Apache III – Space: Delta IV, Atlas V, Falcon, Dragon, SLS, New Shepard – Various other DoD applications
• ‘‐0‐ Defect’ Tolerance & 100% OTD of Parts and Product is Required by Customer Base
h d d• High inventory increasing cost and reducing operating profit and response time.
• Pressure to relocate from Southern California toMexico to improve responsiveness and customer service
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Castle’s Business Need for Implementing Castle’s Business Need for Implementing Obeya in Sales, Warehouse, Traffic, and Obeya in Sales, Warehouse, Traffic, and
ManufacturingManufacturing
44‐‐6 Hour6 HourYellow ZoneYellow Zone
Mix products delivered to multiple locations along fixed or flexible route on schedule or on demand multiple times per
2 Hour2 HourGreen ZoneGreen Zone
Mix products delivered to multiple sites along fixed or flexible route, on schedule or on demand, multiple times per
day. Can deliver hourly.
on demand multiple times per day. Delivers twice per shift
Case Study DiscussionCase Study Discussion
Mills• Batch production• Mill batch
minimums• Weekly/monthly
deliveries regardless of demand
• Forecast
Castle Metals Aerospace• Sales, Warehouse, and
Fabrication operations• Batch production• 1.7 Inventory turns• Low operating capital• High conveyance related
cost• Large warehouse storing
Customers• Sub-assembly Production
based in Mexico for lower labor cost
• Customs, transportation cost• Ship to U.S. and Canada for • Mill batch minimums• Weekly deliveries regardless
production use generally 21• Forecast • Large warehouse storing mostly “Air”
• Weekly deliveries• Pressure to relocate to
Mexico to cut cost and be more responsive
production use – generally 21-30 days material on hand
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Leading the implementation of Leading the implementation of JustJust‐‐InIn‐‐Time requires Commitment from Time requires Commitment from
Executive and Senior ManagementExecutive and Senior Management
Aerospace CU President James Callan. (from front left to right), General Manager Bill Levealle, the Director, Director of Finance, and Director of Strategic Accounts develop their Just‐in‐Time Strategy for their largest distribution customers as
a pilot for Just‐in‐Time
Sales, Warehouse and Traffic Sales, Warehouse and Traffic Obeya “No Cubicles Walls” EnvironmentObeya “No Cubicles Walls” Environment
“Information and Material Must Flow”, Castle created a “No Cubicles or Walls” Obeya environment which reduced waste in “Digital Lead‐time,” Improved
Face‐to‐Face Communication, Problem Awareness and Team‐member Engagement in Sales, Administrative, Engineering, Production Planning, Manufacturing and
Distribution Operations
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Obeya Management ofObeya Management ofJIT & Supply Chain ConnectivityJIT & Supply Chain Connectivity
Signals and ConnectionsSignals and ConnectionsBetweenBetween
Signals and Connections BetweenSignals and Connections BetweenCustomers and CastleCustomers and Castle
Castle and MillsCastle and Mills
Hearty Triangle Kanban
Customers and CastleCustomers and Castle
A Combination of ReplenishmentKanban and Lean Material HandlingCarts/Devices Trigger the Customers Need for Materials from Castle. When empty carts are returned; full carts are sent JIT Kanban is swapped at Supermarket Shadow box ensure the right part based on fit Lean Material Kitting Carts
delivers the absolutely correct materials to Castle’s internal
processing or external customers while taking up the
exact needed footprint
Lean Material Transport Finished Goods SupermarketHearty Triangle Kanban
Are used to trigger replenishment from the Steel Mills
Lean Material Transport Carts moves all the way through the
supply change and back to Castle
Kanban attached to Customizable Extruded Aluminum Carts are right-sized for each part such
as these Aircraft Doors, loaded on “Milk Run” Trucks and travel cross-country from Virginia to
California directly “line-side” to the customers bl
Carts carry enough material to support two hours worth of material
Designed to eliminate the need forExpensive Lifts, cranes, or
retrieval system
Castle Metals Aerospace ObeyaCastle Metals Aerospace Obeya“Management Cadence”“Management Cadence”
6:45 am ‘Hot Start’ Meeting
“No Cold Starts!”
9:20 am: JSP Meeting
11:30 am: ‘Mid Day’ Huddle
“On Track to Target?”
3:00 pm: ‘Plan For Every Part” MeetingMeeting
4:00 pm: End of Day
Schedule Attainment and System PDCA Review Briefing
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Daily Demand Planning Review Daily Demand Planning Review (Joint Sales and Production Team Meeting)(Joint Sales and Production Team Meeting)Monthly Demand for 30‐60‐90 Day PlanBroken Down into 3 10 Day JIT PlanBroken Down into 3‐10 Day JIT Plan
What We Learned SalesWhat We Learned Sales
• Salespeople measured onMonthly All I id S l l h T
Before: After:• Salespeople measured onMonthly
& Quarterly Basis • Sales “Pipeline” by Sales Person
reviewed and Submitted Monthly with Wins & Losses reviewed
• Monthly Conference Calls with Remote Salespeople only
• Institutional walls between Outside Sales, Inside Sales, and Operations
• All Inside Salespeople have Two Hour Takt Pitch for Order Entry.
• Sales operates like the production floor with Production Control Plans
• Andon system brings immediate attention and response to any problem in information flow
• “Top 5” Progress of “Pipeline” Opportunities to Improve through Team KaizenTeam Kaizen
• Increased customer response• Increased Top‐Line Revenue Growth
12%• Improved connection between Sales
and Operations
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JustJust‐‐inin‐‐Time Operations and Obeya Time Operations and Obeya Management = Breakthrough Performance Management = Breakthrough Performance
ImprovementImprovement & Sustainability& Sustainability
What We LearnedWhat We Learned
P i l M d Shift H l P d ti R d
Before: After:• Previously: Measured Shift
Production only.• Did not Monitor the Use of
Routine ‘Consumables’ in Production.
• Applauded: ‘Over‐Production’ when it infrequently occurred
• Hourly Production Records by ‘Mfg. Zone’ increasedUnderstanding of Production Rates per Shift and Variances
• Better Utilization of Resources
• Much better grasp of f q y g pInternal ‘Costs’ per shift
• Capacity, O/A Increased• WIP, Defects, and ‘Starving’
& ‘Waiting’ decreased
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Reflections on Implementing JITReflections on Implementing JITIn Castle’s Distribution SystemIn Castle’s Distribution System
• JIT Requires Daily Commitment & Diligence from Management
– Requires GM, Regional Operations Manager, Area Manager, Group Leader, Team Leader have “Deep” Job Knowledge
• Mechanism for ‘Plant Shop Floor’ Problem Identification and Problem Resolution work just as well in the front and back office.the front and back office.
– Made Problems Visible Addressed all Problems that may arise
– Reduced ‘Un‐Planned’ Downtime by 71%
– Reduced ‘Key Value Stream’ Cycle Time from Order to Cash by 62% initially, with ongoing improvements.
– Increased existing capacity by 60%
– Reduced overall footprint by 60%
• Able to sale forklifts and cranes no longer needed as a result of transportation waste elimination
• 12% Top Line Growth with New Project related to improved customer service12% Top Line Growth with New Project related to improved customer service
• Close to $1 million in cost savings per value‐stream of 4 Value Streams
• Increased Operating Capital (60% accts. Rec. before acct. payable) using A‐B‐C demand planning logic
• Suppliers (The Mills) agreed to deliver daily based on demand signals (Kanban) vs. weekly forecast and mill minimums; decreasing expenditures
• Successfully integrated with customer supply chain through “Lean Material Flow Kaizen Event.” Delivery of Just in Time Inventory Levels (one‐two days cycle stock, only, everyday)
• Builds Teamwork and Improves ‘Associate’ Relations reflected by Vastly improved ‘Employee Engagement’ Survey Results
“Happy” Faces on Castles Aerospace “Happy” Faces on Castles Aerospace Customers!!Customers!!
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Timken Aerospace Bearings
Shiloh Plant
Rutherfordton, NC
LEAN LEADERSHIPLEAN LEADERSHIPACADEMYACADEMY
Why is this Timken Operations Why is this Timken Operations Leadership Team Smiling?Leadership Team Smiling?
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Timken ShilohTimken Shiloh“Obeya Management Cadence”“Obeya Management Cadence”
• 7:45 am ‘Plant Fast Response Meeting’Response Meeting
• 10 ‐11 am Line PDCA’s
• 11‐12 am Critical Point Gemba walks
• 3:30 pm JSP review
• 7‐8 pm Line PDCA’s7 8 pm Line PDCA s
• Bi‐Monthly Process Reviews
• Monthly Hoshin/Kojo Kanri reviews
Connecting the Andon Connecting the Andon System, Dispatcher &System, Dispatcher &
Operations Operations ObeyaObeyaDispatcher locatedDispatcher located
TeamTeam--membermemberRecognizesRecognizesProblem andProblem andPulls AndonPulls Andon
Cord andCord andResponseResponse
Dispatcher locatedDispatcher locatedin Obeyain Obeya
Line Stop ZoneLine Stop ZoneAwarenessAwareness
Dispatcher “Data minesDispatcher “Data minesDispatcher “Data minesDispatcher “Data mines
Single Minute Response TeamSingle Minute Response TeamUses SMED approach to Uses SMED approach to
Return to Operation in less thanReturn to Operation in less than10 minutes10 minutes
Single Minute Response TeamSingle Minute Response TeamUses SMED approach to Uses SMED approach to
Return to Operation in less thanReturn to Operation in less than10 minutes10 minutes
Andon BoardAndon BoardLights UpLights Up
Music Music PlaysPlays
Notifying Notifying Team LeaderTeam Leader
Dispatcher Data minesDispatcher Data minesRecent performance issuesRecent performance issuesFor the equipment & areaFor the equipment & areaThat initiated Andon andThat initiated Andon and
Reports findings to team leadersReports findings to team leadersSingle Minute Response TeamSingle Minute Response Team
Dispatcher Data minesDispatcher Data minesRecent performance issuesRecent performance issuesFor the equipment & areaFor the equipment & areaThat initiated Andon andThat initiated Andon and
Reports findings to team leadersReports findings to team leadersSingle Minute Response TeamSingle Minute Response Team
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Proper Problem Awareness & Fast Proper Problem Awareness & Fast Response to ProblemsResponse to Problems
Line StopAwareness
ClockAndon Signal Andon Signal
StationStationEven for Lean Even for Lean AndonAndon
Andon LightAndon Light
WorkstationWorkstationAndon and Andon and
Downtime ClockDowntime Clock
Office, Traffic, and Office, Traffic, and Engineering IssuesEngineering Issues
SMaRTSMaRTTeam Team
DispatcherDispatcherLocated in Located in
ObeyaObeya
Obeya AndonObeya AndonAwarenessAwareness
AndonAndonBoardBoard
Andon Andon LightLightSwitchSwitch
Zone Andon Signal Zone Andon Signal StationStation
With Status Lights and With Status Lights and M iM i
Downtime ClockDowntime ClockLocated at Cell Located at Cell
PacemakerPacemaker
yy
AndonAndonBoardBoard
Andon System and Zone ControlAndon System and Zone ControlTimken Shiloh, Rutherfordton, NCTimken Shiloh, Rutherfordton, NC
3. Audible Alarm
4. Team Leader Response
5. Op Center Communication
7 Structure
2. Andon System Visual Problem Identification
6. Single Minute Response TeamSMED approach to SQDP BreakdownProblems
1. Notification of Problem
7.StructuredProblem Solving Process
8. Data Uses/Collection/Mining
9. Data Analysis
10. Problem prevention re-occurrence
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Before >240 Minute Chain of Response
After<60 Minute Takt‐based Chain of Response
Team Leader Acknowledgement
and Decision, within minutes, on Problems that
interrupt the Flowinterrupt the Flow of Quality,
Productivity, On‐time Delivery, and
Safety
51Highly Defined Response Timelines to Safety, Quality, Delivery and Productivity IssuesResults in 75% Improvement Response time to Problems
What We Learned in ‘Obeya’ What We Learned in ‘Obeya’ Operations & ‘Zone Control’Operations & ‘Zone Control’
H l h i 4 h
Before: After:• Help chain was 4 hours,
loosely followed
• Rarely produced objective results
• Did not realize deviations from plan in real time d
• Help chain 1 hour with rigid operator and support compliance
• Documented processes driving A3 thinking and prevention reoccurrence
reducing opportunity to drive mitigation and corrective action
• Hour by hour tracking and reporting driving action at the time and point of occurrence
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Reflections on ImplementingReflections on ImplementingObeya & Zone ControlObeya & Zone Control
• Implementation of Andon system. R i d h i lt thi ki d di i li t ll– Required a change in culture, thinking and discipline at all levels of the organization
– Absolute support top down– Within 60 days, achieved
• 29% improvement in output• 17% improvement in productivity • 12% improvement in schedule attainment and on time delivery.
• Improved associate engagement and morale• Continue to build and improve problem solving skills across
the organization– Tendency to revert back to what we are good at, used to, quick fix
versus permanent, robust repair solutions
Ex. Timken Production ImprovementEx. Timken Production ImprovementIncreased by 200+%Increased by 200+%
While Standard Labor Value Earned Increased 25%While Standard Labor Value Earned Increased 25%100% Daily Schedule100% Daily Schedule
Example Production Per Day
16881808
1504
1745
2552
2103 2131
2390
2664 2629 26662490
3103
1500
2000
2500
3000
3500
s P
er D
ay MT
Goal
Linear (MT)
Pilot
54
1504
0
500
1000
1500
2010 Jan Feb March April May June July Aug Sept Oct Nov Dec
Pcs
Month
( )
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“If a problem is left unsolved and the
Why Must All Why Must All Problems be made Visual, Problems be made Visual, Known, Known, and Communicated?and Communicated?
supervisor is uninformed, neither Kaizen nor Cost Reduction can be applied. Once the problem is clear, Kaizen becomes possible.”
Taiichi Ohno,
Former Executive Vice President
Of Toyota Motor Corporation