The Business of Kaizen

Transcription

1 The Business of Kaizen

2 We ll Talk About 1. What is lean 2. The Kaizen Philosophy 3. How it can be applied to the collision business The Method

3 What is Lean? Described the Toyota s Business System Six Sigma = reduce variation Theory of Constraints = identify systemic problems Tools of efficiency = remove waste 5-S Value stream mapping Heijunka Standard Kanban systems Visual management systems

4 The Kaizen Philosophy

5 What Problem Are you Trying to Solve? How do we achieve a much higher level of Quality & Customer Satisfaction than our Competition at a much lower (operating) Cost? Cheaper - Better - Faster

6 The Math Cost + Profit = Sale Original Formula Sale Cost = Profit New Formula (Sale-Cost) x Volume = Profit 100 X Let s think about this differently

7 A Common Sense Approach that goes unpaid and burns up excess resources that causes mistakes that slows cash flow Remove it continuously and together as the actual (the job we all do) Increase the rate of value production while maintaining costs Look at it in this light

8 The Things We Do Return Estima te time Insurer credit RAC tool Post Apply Paint Wash damag Weld car Wait Ask needs supp Upload LKQ Fax boss Remov Filler keys approv s Test fit Take Image Block run ding tape Spray out Metal Tint ops signed out car Install Part Make Revie w job Explai n delay Print Fill out form

9 The Truth ed Costs $100,000 Return Estima te time Insurer credit RAC tool Post Apply Paint Wash damag Weld car Wait Ask needs supp Upload LKQ Fax boss Remov e Filler keys approv s Test fit Take Image Block run ding tape Spray out Metal Tint ops signed out car Install Part Make Revie w job Explai n delay Print Fill out form

10 The Truth Value $100,000 Return Estima te time Insurer credit RAC tool Post Apply Paint Wash damag Weld car Wait Ask needs supp Upload LKQ Fax boss Remov Filler keys approv s Test fit Take Image Block run ding tape Spray out Metal Tint ops signed out car Install Part Make Revie w job Explai n delay Print Fill out form

11 The Truth Waste $100,000 Return Estima te time Insurer credit RAC tool Post Apply Paint Wash damag Weld car Wait Ask needs supp Upload LKQ Fax boss Remov Filler keys approv s Test fit Take Image Block run ding tape Spray out Metal Tint ops signed out car Install Part Make Revie w job Explai n delay Print Fill out form

12 What s the Real Cost of ting Through This? Return Estima te time Insurer credit RAC tool Post Apply Paint Wash damag Weld car Wait Ask needs supp Upload LKQ Fax boss Remov Filler keys approv s Test fit Take Image Block run ding tape Spray out Metal Tint ops signed out car Install Part Make Revie w job Explai n delay Print Fill out form

13 $100,000 Truth Only When All Parts Interact Estima te time Insurer $2500 out car car signed Metal Ask needs tool Fax credit Weld Spray out approv LKQ Test fit Tint Apply Paint damag Return Filler tape Block run keys Upload Explai n delay We can only get the cash once we get all the way thru Fill out form Revie w job Take Image supp Print ding Make Wait Post Remov boss Install Part RAC ops s Wash

14 Truth Profit = Rate of Cash vs. ed Estima te time Insurer out car car signed Metal Ask needs tool Fax credit Weld Costs $100,000 Spray out approv LKQ Test fit Tint Apply Paint damag Return Filler tape Block run keys Upload Explai n delay Fill out form Revie w job Take Image supp Print ding Make Wait Post Remov boss Install Part RAC ops s Wash

15 Truth Waste = Cost $2400 Estima te time Insurer out car car signed Metal Ask needs tool Fax credit Weld approv LKQ Test fit Tint damag Return $1500 Filler tape keys Upload Fill out form Take Image supp $1600 Explai n delay Print ding Wait Post Remov boss $1700 Install Part ops s Spray out Apply Paint Block run Revie w job Make RAC Wash

16 Truth Time is Money Estima te time Insurer out car car signed Metal Ask needs tool Fax credit Weld Spray out approv LKQ Test fit Tint Apply Paint damag It s speed that controls net Return Filler tape Block run keys Upload Explai n delay Fill out form Revie w job Take Image supp Print ding Make Wait Post Remov boss Install Part RAC ops s Wash

17 Can We Increase Speed by Removing Insurer Ask needs Fax approv damag Waste? Take Image Metal Post tool Remov Weld Upload Test fit Filler Print $80,000 s Install Part Tint Spray out Apply Paint Make Wash

18 Truth Less Waste = Less Cost Insurer Ask needs Fax approv damag Take Image Post Remov Upload Print $80,000 Metal tool Weld Test fit Filler s Install Part Tint Spray out Apply Paint Make Wash

19 Truth Time is Money Insurer Ask needs Fax approv damag Take Image Metal Post Remov Reduce time Increase cash rate tool Weld Upload Test fit Filler Print $80,000 s Install Part Tint Spray out Apply Paint Make Wash

20 Simply Put All we are doing is looking at the time line, from the moment the omer gives us an order to the point when we collect the cash. And we are reducing the time line by reducing the non-value adding wastes. Taiichi Ohno

21 Kaizen Method 1. Identify who our omer is and what they value 2. Create flow of this value 3. Put the omer in change of the flow by allowing them to pull it and break it 4. the problem and the system 5. Set system targets to perfect (pulling strength) so we have a need to discover new things

22 Identifying the Customer and their Value Who has the money that we would like to earn? Insurers that can send us? The person who owns the damaged car? It s your business there s no wrong answer.

23 Identifying the Customer and their Value What do they value? Only tasks ( ) that they would be willing to exchange for cash 7 types of waste Overproduction Excess movement people Excess movement product Waiting Re Excess processing Inventory Less waste + more Value (with same cost) = more Profit

24 How to Create Flow of Value 1. Think river of faster river / faster cash 2. Proper sequence 3. Proper way 4. Pass no defects 5. First in first out One way street 6. Create interdependency System Where there is no standard, there can be no Kaizen - Ohno

25 Have the Customer Pull the System of Flow System is a Chain of value for the omers sake They pull it to get their value When they pull hard? When we fix that?

26 the Problem and the System What Just Broke? Why Why Why? Is it normal? What should we do?

27 Pursue Perfection to drive Discovery Not Benchmarks KPI s Not commoditize us This is a discovery process, if we knew The best way, we would be doing it!

28 The Big Problem It s the same everywhere Not knowing the problem! If we knew it we would have addressed it.

29 DuPont Approaches to Lean