Competing in the Marketplace pptx

1
John Deere
Supplier Development
Kaizen Training
Kaizen Training
Competing in the Marketplace
Competing in the Marketplace
“What factors are important to the customer?”
John Deere - Supplier Development
John Deere - Supplier Development
2
John Deere
Supplier Development
Kaizen Training
Kaizen Training
TIME:
TIME:
The single best indicator
of competitiveness
Customer Lead Time / Delivery Time
Working to reduce or minimize each of these times can
make your company more valuable to both its internal
and external customers.
Set-up or Change-over Time
Product Development Time
Manufacturing Cycle Time
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John Deere
Supplier Development
Kaizen Training
Kaizen Training

Shrinking Lead Times
Order Lead Times Manufacturing Lead Times Delivery Lead Times
Manufacturing Lead TimesOrder Lead Times Delivery Lead Times
Reducing the overall time from receiving the order to delivering the
product makes your company more responsive to the customer.
This can become the deciding factor when the customer makes
their selection.
As can be seen, manufacturing is only one part of the entire
process. Inputting, processing, and issuing orders is an area
for improvement, as well as, assembly, loading and delivery
to the customer`
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John Deere
Supplier Development
Kaizen Training
Kaizen Training
Where’s the Time in Lead Time
This timeline represents an overall lead-time, with very little
time spent on adding value to the product.
Non-Value Added Time (NVA)
99% of Total Lead time
Value Added Time (VA)
1%
Improvement Efforts
Concentrated on reducing VA time,
with no attention given to NVA.
Non-Value Added Time (NVA)
99% of Total Lead time
VA
1/2 %

Results of Common Improvement efforts, did not improve
response time. VA time is reduced, but, the costs for those
improvements in lead time was substantial.
Common
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John Deere
Supplier Development
Kaizen Training
Kaizen Training
Where’s the Time in Lead Time
NVA Time
95% of Total Lead time
VA
5%
When we look at attacking the NVA Activities in the Timeline
and compare that to the original timeline:
Non-Value Added Time (NVA)
99% of Total Lead time
Value Added Time (VA)
1%
This shows a 5X improvement in lead time
Great Job!!
Greatest Opportunities are actually here!
6
John Deere
Supplier Development
Kaizen Training
Kaizen Training
Different Types of Activities
Being able to tell the difference between NVA and VA

activities is an important step in the Improvement Process.
Value Added
Activity (VA)
An activity that changes raw
material to meet customer
expectations.
Non Value Added

Activity (NVA)
Those activities that take
time, or occupy space but
do not add to the value of
the product.
You must ask yourselves “Would you as a customer be
willing to pay for any NVA activity being performed to that
NEW 4x4 Pickup you just ordered?”
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John Deere
Supplier Development
Kaizen Training
Kaizen Training
Some examples NVA Activities:
Walking
Waiting on
machine cycle
Transporting
parts
Generating
useless reports
THE GOAL IS TO ELIMINATE THE

THE GOAL IS TO ELIMINATE THE
NON-VALUE ADDED ACTIVITIES.
NON-VALUE ADDED ACTIVITIES.
Unnecessary
motion
Unnecessary
stock on hand
8
John Deere
Supplier Development
A definition:
Destroy, in our minds, the
concepts and techniques of
manufacturing that we
practice today.
Create a vision of what our
production system and
manufacturing techniques
should be.
Carry out that Vision by
breaking through the status
quo.
We must avoid the urge to
discover more sophisticated and
technological solutions to tasks
we shouldn’t be doing at all.
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John Deere
Supplier Development
Kaizen Training

Kaizen Training
Basic Rules for Change
Keep an open mind to change
No such thing as a dumb question or idea
Avoid spending money (Capital expense should
be a last resort)
Think about how to do it, NOT why it can’t be done
Maintain a positive attitude
Don’t’ make excuses & question current practices
Just do it!!
Have Fun!!!
10
John Deere
Supplier Development
Kaizen Training
Kaizen Training
Steps on Team Development
Forming
Forming
This is the development of a multi-functional
team with a variation of backgrounds and
knowledge
Norming
Norming
Stage where the group agrees how to
operate as a team
Storming
Storming
Open & honest discussion, also brainstorming
Performing

Performing
Agreement on solutions & taking action
Adjourning
Adjourning
Closing on the continuos improvement process
after 30 days
11
John Deere
Supplier Development
Kaizen Training
Kaizen Training
What is TAKT Time?
TAKT time is how many minutes or seconds are needed
to make one part when considering the daily volumes, to
be produced in that workcell and the total time available to
perform the job.
TAKT time is NOT the time it takes to manufacture the
product. It is based on customer demand.
Who is the customer?
The next operation
Customer orders
12
John Deere
Supplier Development
Kaizen Training
Kaizen Training
TAKT Time Calculation
Production Time Available / Period
Number of Required Units / Period
TAKT

TAKT
Production Time Available / Period (one shift):
Breaks - 2 @ 10 minutes
Shift Time ( 8 hrs. )
Clean-up at end of shift
Production Time Available:
- 20 mins.
480 mins.
- 5 mins.
455 mins.
Units Required / Period (one shift):
10,500 Units Sold Monthly
21 Working shifts / month
27,300 secs.
or
500 Required units / shift
TAKT Time:
TAKT Time:
27,300 secs / shift
500 units / shift
54.6 secs.
13
John Deere
Supplier Development
Kaizen Training
Kaizen Training
The 5S Housekeeping Standards
First Step towards Continuos Improvement
The aim of 5S is to create an atmosphere to keep a clean,
organized, safe and efficient workplace for everyone.

The foundation for the practice of 5S, comes from a Japanese
program derived from these words, seiri, seiton, seiso, seiketsu
and shitsuke. The 5S’s are a conventional approach towards
maintaining and improving the work place. The following words
have been chosen for the 5S acronym’s.
Sort
Sustain
Sanitize (Safety)
Straighten
Sweep
14
John Deere
Supplier Development
Kaizen Training
Kaizen Training
Meaning of the 5S’s
Sort
Straighten
Sweep
(Scrubbing clean)
Examine everything at the workplace & identify
what is needed and what can be discarded
Organizing the way things are put away with
efficiency, quality, and safety in mind. Need to
decide where and how things should be put away
and what rules should be obeyed to insure that it is
maintained.
Sweeping, scrubbing and cleaning of the building,
machines, fixtures & tools so that all areas of the
workplace are neat & tidy. This leads to early

detection of mechanical problems before they
become major breakdowns. Machines cry!
15
John Deere
Supplier Development
Kaizen Training
Kaizen Training
Sanitize
(Safety)
Sustain
(Standardize)
Meaning of the 5S’s
Insuring that each workplace is properly
designed for safety. This is to protect every
member from the dangers during the
performance of their assigned tasks.
Developing the practice necessary to
continually participate in the 5S process. This
requires that each of the S’s become a personal
habit. This is the most difficult of the 5S’s, but it
is the most important factor in achieving long
term success. Establishing routines and
procedures for maintaining and improving on
the first four (S’s), incorporating visual
management tools.
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John Deere
Supplier Development
WASTE
Kaizen Training

Kaizen Training
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John Deere
Supplier Development
Kaizen Training
Kaizen Training
Do MORE with LESS
Waste Productivity
Staffing Productivity
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John Deere
Supplier Development
SHIFT MINDSET
CURRENT
THINKING
REQUIRED
THINKING
WASTE NOT DEFINED
REACT TO LARGE EXAMPLES
REACTIVE IMPROVEMENT
WASTE IS "TANGIBLE”
IDENTIFY MANY SMALL OPPORTUNITIES
-LEADS TO LARGE OVERALL CHAGE
CONTINUOUS IMPROVEMENT
WASTE
TYPES
OF
WASTE
Correction
Processing

Motion
Waiting
Inventory
Transportation
Over-
Production
19
John Deere
Supplier Development
1. Transportation - Transporting 1. Transportation - Carrying
farther than necessary or Tools to Point of Use
temporarily locating, filing,
stacking and moving parts
(people, paper, information) is
waste.
2. Correction - Doing something 2. Correction - Redo an Activity
over is waste. Because of Error
3. Overproduction - Generating 3. Overproduction - Number of
excess paper or information, or Copies
generating information or paper
too soon in a process is waste.
Definition Example
ELEMENTS OF WASTE
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John Deere
Supplier Development
4. Motion - Unnecessary work 4. Motion - Tools in drawers
movements are a form of waste.
5. Waiting - Waiting for people, 5. Waiting - Meetings to start
paper and information is waste -

it stops work.
6. Inventory - Too much of 6. Inventory - Supplies
anything is waste.
7. Processing - this is waste in 7. Processing - Typed when
the process itself. Redundant handwritten would be
activities sufficient
Definition Example
ELEMENTS OF WASTE
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John Deere
Supplier Development
Kaizen Training
Kaizen Training
Standards
Enforce
Inspect
.
Stabilize
Identify
Waste
I
m
p
r
o
v
e
Problem Solve
Standardize
•

Process requires ongoing inspection and enforcement to
ensure “Standardized Work” is being followed
•
Process does not improve automatically
- Following standards will only maintain, not improve, the
process.
- Improvement focuses on the entire process.