Six Sigma, Lean, TPS, TQM

Here are four brief descriptions of terms that you will encounter when dealing with us at Chase Performance.  Our programs are customised tailored solutions which are implemented with both state and federal government assistance in most cases at no cost to your business, and can be applied to any industry.  Please visit us at www.chaseperformance.com or email me: roland.weber@chaseperformance.com

Roland Weber
Executive Manager, Strategy & Sustainability


Six Sigma


is a business management strategy, originally developed by Motorola, USA in 1986.
Six Sigma seeks to improve the quality of process outputs by identifying and removing the causes of defects (errors) and minimizing variability in manufacturing and business processes. It uses a set of quality management methods, including statistical methods

A six sigma process is one in which 99.99966% of the products manufactured are statistically expected to be free of defects (3.4 defects per million)

Lean


Lean manufacturing, lean enterprise, or lean production, often simply, "Lean," is a production practice that considers the expenditure of resources for any goal other than the creation of value for the end customer to be wasteful, and thus a target for elimination. Working from the perspective of the customer who consumes a product or service, "value" is defined as any action or process that a customer would be willing to pay for.

TPS


Essentially, lean is centered on preserving value with less work. Lean manufacturing is a management philosophy derived mostly from the Toyota Production System (TPS) (hence the term Toyotism is also prevalent) and identified as "Lean" only in the 1990s

TQM


Total quality management is an integrative philosophy of management for continuously improving the quality of products and processes.

TQM functions on the premise that the quality of products and processes is the responsibility of everyone who is involved with the creation or consumption of the products or services offered by an organization. In other words, TQM capitalizes on the involvement of management, workforce, suppliers, and even customers, in order to meet or exceed customer expectations.

Motivation in the Workplace

In light of the recent addition to the Chase Performance team, Angela Corriero, and the subsequent connection to Process Improvement Japan (http://www.process-improvement-japan.com/), we have learnt even more about the importance of culture in a company in regards to Lean.  The below article is a direct copy of the information on Process Improvement Japan (http://www.process-improvement-japan.com/motivation-in-the-workplace.html).  For more information please visit the Process Improvement Japan site, the Chase Performancec site (http://www.chaseperformance.com) or contact us at sales@chaseperformance.com.  We would be happy to discuss this further directly with you, and with offices around Australia one of our consultants or coaches is never far ayay.

Motivation in the workplace is key!An exclusive interview with Executive Vice Chairman Yasuhito Yamauuchi, Aisin Seki, Japan.
Aisin Seki is one of the major Toyota Group companies. It is also a fortune 500 company. Mr. Yamauchi, elected Vice Chairman in 2009, served as the President of Aisin Seki from 2005 to 2009. Prior to that, he was Executive Managing Director of The Toyota Motor Corporation from 2001 to 2005. Managing all production plants internationally. 
Photo above: Mr. Yasuhito Yamauchi, Aisin Seki left, Ms. Angela M. Corriero, Process Improvement Japan, right.

Process Improvement Japan had the opportunity to sit down with Mr. Yasuhito Yamauuchi to discuss his views on Total Quality Management and Lean Kaizen implementation. What came out was the link between successful lean management and motivation in the workplace. An understanding, Mr. Yamauuchi says, excellent companies around the world have in common.

Managing Success

“Effective Total Quality Management and Lean Kaizen implementation starts with the thorough implementation of the job`s basic work standards. After standardization has been decided, it has to be practiced exactly. In order to practice the standards perfectly, workers must know the true meaning and value of each standard – not only in theory. They must have the skill and knowledge to put it into practice. Then, it is the supervisor`s duty to check and confirm the standards have been put into practice exactly. The role of the supervisor is a very important one. Education and training to supervisors is essential. We create standardization based on the supervisor`s skill and knowledge; with the benefits for the company in mind. Supervisors are the link between the front line workers and upper management.To become a supervisor at Toyota Motor Corporation or Aisin Seki, takes a lot of experience.

Where Gemba kaizen comes inSometimes, implementation of work standards is not enough. The operators may carry out the work sequence and standards but feel some uneasiness – this is the time for them to suggest kaizen.
The key is to create a working environment where workers can suggest improvements.
Work standards must be followed, but once workers realize that a particular standard is not enough, it is the time for kaizen. When there is a need for Kaizen, supervisors must be able to improve the work sequence or fix the abnormality. Motivation in the workplace creates momentum for effective gemba kaizen implementation
Photo above: A worker explains his gemba kazien suggestion.

For details on kaizen and lean manufacturing principles, click here.

On workforce management

Upper level (above supervisors) must understand the Kaizen philosophy and the importance of motivation in the workplace. Actually, it`s front line workers` ideas and suggestions which must be absorbed into the upper levels of management. Kaizen implementation is truly a bottom- up approach to effective management. In the West, there is a separation between blue collar and white collar workers. If blue collar workers must follow white collar rules, it inhibits effective Kaizen, employee engagement and employee motivation – This inhibits cost reduction and profit maximization.

How success is culminated, one step, one worker at a time:
A company is built up by a culmination of individual efforts. Section to department to Company wide. This is something we`ve been doing at Toytota from the beginning. It`s nothing special, just the way of doing business.Material costs are pre-determined by the market. Therefore, our strategy has long been:

Increase Performance Rates to increase Profit.

Key in The Toyota Production System: The Elimination of Waste
When busy, it is very difficult to reduce waste, implement continuous kaizen and lean 5s consistently. After the Lehman shock, it became easier to do this as we had lower production demands. The results have been impressive. 
Although, we have not reached our pre-Lehman production levels, our profit level has been increasing rapidly.
This is the power of the Toyota Production System fundamentals of Standardization, Just-In-Time manufacturing, lean 5s and continuous kaizen.

For more details on The Toyota Production System`s view on profit and the elimination of waste, click here.

Motivation in the Workplace is Essential

Unless we have vitalized front line workers, we cannot be successful. They are the ones who actually produce the product and the profit. Our job in management, is to make them energized. The corporate culture must be vitalized. At the factory sites, I tell workers, `you are the people who actually create profit through your skills and wisdom. Material costs are pre-determined by the market. How do we increase profits? You. Through your skills and performance.`
Unless employees are motivated, we cannot create a good attractive company.

Managers, directors and supervisors must understand this or their system won`t work. Leadership Styles are important.
As a leader, I have to communicate the corporate vision to all members of the company and must show that we are very concerned about our vision and our future direction. Whenever I have time, I visit the Gemba of all divisions. I visit people. Because I am in a high position, If I call others to come, it`s no good. No, I go to them.”

CASE STUDY: Motivation Theory & Employee Engagement, click here.

How to motivate employees, click here.

Mr. Yamauuchi praised Proctor and Gamble`s corporate philosophy, “Proctor and Gamble share the same idea. They pay good attention to employees. We see things in common among excellent companies throughout the world.”

For Mr. Yamauchi`s view on employee engagement, click here.

What is 5S

5S is the name of a workplace organisation methodology that uses a list of five Japanese words which are seiri, seiton, seiso, seiketsu and shitsuke. Transliterated or translated into English, they all start with the letter "S". The list describes how to organise a work space for efficiency and effectiveness by identifying and storing the items used, maintaining the area and items, and sustaining the new order.

Sorting (Seiri)

Eliminate all unnecessary tools, parts, and instructions. Go through all tools, materials, and so forth in the plant and work area. Keep only essential items and eliminate what is not required, prioritising things per requirements and keeping them in easily-accessible places. Everything else is stored or discarded.

Stabilising or Straightening Out (Seiton)

There should be a place for everything and everything should be in its place. The place for each item should be clearly labeled or demarcated. Items should be arranged in a manner that promotes efficient work flow, with equipment used most often being the most easily accessible. Workers should not have to bend repetitively to access materials. Each tool, part, supply, or piece of equipment should be kept close to where it will be used – in other words, straightening the flow path. Seiton is one of the features that distinguishes 5S from "standardised cleanup". This phase can also be referred to as Simplifying.

Sweeping or Shining (Seiso)

Clean the workspace and all equipment, and keep it clean, tidy and organised. At the end of each shift, clean the work area and be sure everything is restored to its place. This makes it easy to know what goes where and ensures that everything is where it belongs. Spills, leaks, and other messes also then become a visual signal for equipment or process steps that need attention. A key point is that maintaining cleanliness should be part of the daily work – not an occasional activity initiated when things get too messy.

Standardising (Seiketsu)

Work practices should be consistent and standardised. All work stations for a particular job should be identical. All employees doing the same job should be able to work in any station with the same tools that are in the same location in every station. Everyone should know exactly what his or her responsibilities are for adhering to the first 3 S's.

Sustaining the Practice (Shitsuke)

Maintain and review standards. Once the previous 4 S's have been established, they become the new way to operate. Maintain focus on this new way and do not allow a gradual decline back to the old ways. While thinking about the new way, also be thinking about yet better ways. When an issue arises such as a suggested improvement, a new way of working, a new tool or a new output requirement, review the first 4 S's and make changes as appropriate.

Safety

A sixth phase, "Safety", is sometimes added. There is debate over whether including this sixth "S" promotes safety by stating this value explicitly, or if a comprehensive safety program is undermined when it is relegated to a single item in an efficiency-focused business methodology.

Security

A seventh phase, "Security", can also be added. In order to leverage security as an investment rather than an expense, the seventh "S" identifies and addresses risks to key business categories including fixed assets (PP&E), material, human capital, brand equity, intellectual property, information technology, assets-in-transit and the extended supply chain.

Satisfaction

An eighth phase, “Satisfaction”, can be included. Employee Satisfaction and engagement in continuous improvement activities ensures the improvements will be sustained and improved upon. The Eighth waste – Non Utilised Intellect, Talent, and Resources can be the most damaging waste of all.
It is important to have continuous education about maintaining standards. When there are changes that affect the 5S program such as new equipment, new products or new work rules, it is essential to make changes in the standards and provide training. Companies embracing 5S often use posters and signs as a way of educating employees and maintaining standards.


For more information on how we can assist you at no cost to implement these systems in your organisation please contact me on 1300 880 338 or email sales@chaseperformance.com


Here is another beneficial link to our Japanese associates:  http://www.process-improvement-japan.com/lean-5s.html

Finally, you can visit our web site for more information: http://www.chaseperformance.com

Lean Mining

Chase Performance are specialist consultants in the implementation of Lean business improvement processes.  Lean methodologies evolved in the manufacturing sector where they have been used to identify and eliminate "wasteful" or "non-value adding" activities.  Lean processes have been highly effective in the resources sector where they are rapidly being implemented in an effort to create stable, safe and efficient mining environments. 

Prime examples in Australia are BHP and RIO.  

Even with companies like BHP and RIO who employ their own business improvement specialists, we can assist and support their programs in most cases cost neutrally through our nationally recognised programs that attract government funding to assist in the implementation.

Chase Performance combines extensive Lean experience from the manufacturing sector with decades of resource industry involvement through our experts.  This is a unique and powerful offering resulting in the development and application of a tailored solution to our clients.

Our approach is to work with the management teams of operating resource sites to revitalise Business Improvement efforts through the targeted injection of Lean.  Our experience at all levels of the organisation allows us to offer a range of solutions from company or site wide Lean implementations to specific process/problem solutions.  Typical activities include:

• Ø  Improving Site Safety & Efficiency through 5S implementation
• Ø  Reduction in cycle time on repeat processes such as drill and blast, heavy vehicle servicing, underground deployment, preventative maintenance, etc.
• Ø  Introducing and ensuring safety and efficiency routines and processes
• Ø  Utilising visual information management for improved workforce participation
• Ø  Enhancing the speed at which contractors can be mobilised and demobilised through quick changeover processes
• Ø  Minimising the effects of equipment shutdowns, days lost and shift changes
• Ø  Overall reducing waste, pollution and minimising effects on the environment through the implementation of environmental management systems (like ISO14000)
• Ø  And many more…

Our most recent program with Leighton’s HWE has resulted in an immediate cost reduction of five Million Dollars in one small area of the business, with ongoing savings of the same amount on an annual basis.

Please contact me so that we can discuss in detail how Chase Performance can add value to your organisation at all levels from operations through management.  You will find our approach both engaging and seamless, with great outcomes and often no expense to your business.

If you can’t see how or think this is not possible, try me…

Tim Woods - 7 + 1 Wastes (Taken from Toyota Way Fieldbook)

Here is some more information in regards to the seven plus one wastes often discussed around Lean Six Sigma.  To find out how we can help you eliminate these from your business through a cost neutral solution while creating the bottom line benefits for your organisation send me an email at roland.weber@chaseperformance.com or visit our web site www.chaseperformance.com.

With offices in Melbourne, Sydney, Perth, Adelaide & Brisbane we can assist you with a national program.  You will get access to all our experts, MBA's and back belts to maximise the benefits to your business.  We do not teach but coach.  We actively get involved on the floor, rather than just classroom style presentations.  Everyone participating in our programs will gain a nationally recognised qualification as an added bonus.

Transportation or conveyance. Moving work in process (WIP) from place to place in a process, even if it is only a short distance. Or having to move materials, parts, or finished goods into or out of storage or between processes.

Inventory. Excess raw material, WIP, or finished goods causing longer lead times, obsolescence, damaged goods, transportation and storage costs, and delay. Also, extra inventory hides problems such as production imbalances, late deliveries from suppliers, defects, equipment downtime,

and long setup times.

Movement. Any motion employees have to perform during

the course of their work other than adding value to the part, such as reaching for, looking for, or stacking parts, tools, etc. Also, walking is waste.

Waiting (time on hand). Workers merely serving as watch persons for  an automated machine, or having to stand around waiting for the next processing step, tool, supply, part, etc., or just plain having no work because of no stock, lot processing  delays, equipment downtime, and capacity bottlenecks.

Overproduction. Producing items earlier or in greater quantities than needed by the customer. Producing earlier or more than is needed generates other wastes, such as overstaffing, storage, and transportation costs because of excess inventory. Inventory can be physical inventory or a queue of information.

Overprocessing or incorrect processing. Taking unneeded steps to process the parts. Inefficiently processing due to poor tool and product design, causing unnecessary motion and producing defects. Waste is generated when providing higher quality products than is necessary. At times extra “work” is done to fill excess time rather than spend it waiting.

Defects. Production of defective parts or correction. Repairing of rework, scrap, replacement production, and inspection means wasteful handling, time, and effort.

Skill under utilised Losing time, ideas, skills, improvements,

and learning opportunities by not engaging or listening to your employees.