Gemba Kaizen

On the first day of the on-site consulting process, our experienced consultant will simply observe the day-to-day operations at your workplace (factory, warehouse, office, etc.). In this first step of Kaizen, within an hour the consultant will be able to identify many areas needing improvement. Pointing out the problem where it exists, at the time it is found, is very important. This allows operators and production management to see the problem as it occurs and observe the consequences that were invisible to them before.

Next, our consultant begins analyzing each of your processes, which includes measuring time, moving distance, information shown on labels, movement status, etc. Such details may seem trivial, but it is the accumulation of seemingly minor details that can negatively, or positively, affect productivity. Addressing problems on this level can make a dramatic difference -- the difference of success.

As you will see, personally experiencing the results of Kaizen activity is worth a thousand words, as both staff and management, together, recognize the benefits of Gemba Kaizen.

The Toyota Production System (TPS) was developed specifically with the automotive industry in mind, and remains the best efficiency technology for that industry. The SGC Production System's Kaizen concept is based on the TPS, but may be applied to any manufacturing circumstance. The following case analysis illustrates how effective the SGC Production System can be for other businesses.

Boeing, one of our clients, builds 15 to 20 of its "737" commercial jets per month in Renton, Washington. Such low unit production is quite different from the automotive industry!

The left picture (click to enlarge) was taken before SGC consultants introduced Kaizen. Problem areas the consultants detected were:

No system to identify delays in the production process.
Each job must be completed within a specified time, but this principle was NOT performed because there was no system to detect any process which exceeded the time allowed. Accumulation of small, incremental, job delays impeded the next process and created longer total lead-time, which resulted in more staff "down" time at later stages and therefore increased labor costs.
No system to identify unacceptable production process or work product.
The quality of the final work product, as well as the process to produce it, must be confirmed. This should take place either during the process or immediately following each process. However, as was the case here, often no immediate quality assurance is performed because the operation has no system for detecting defective work. Such errors (quality problems) then come to light at a later stage of production, or at final inspection. The costs associated with fixing errors later in production are much higher than the cost of reworking the moment they occur.
High volume inventory.
Frequent delays at the assembly line, and thus longer lead time, also increased inventory of items that were not used on schedule. The enlarged inventory reduced turnover of funds, required more storage space, and boosted total manufacturing costs.

The left picture (click to enlarge) shows the Boeing Gemba after our consultants led its staff and management through Kaizen implementation. The Kaizen techniques suggested and helped staff to establish were:

Process Time Monitoring.
This system is designed to alert staff when a given process is not completed within the specified time. A moving line was introduced, on which an aircraft is placed and moves forward at a constant rate. Target lines (start/finish) are drawn on the plant floor. Each process must be completed during the time the aircraft moves from the start line to the finish line. Workers know immediately if the process is on time or delayed simply by looking at the aircraft's position.
Quality Control.
A Quality Assurance team inspects all processes and work product immediately after it is completed so that improper processes and/or unacceptable products are not carried forward to the next phase. All workers are trained to understand that the quality of the final product depends on the quality of each process.
Inventory Control.
Materials for each stage of production are strategically placed at just the point they will be used, and in just the quantity needed. On-time assembly and integral quality control throughout the production process means no excess inventory is accumulated. Therefore, vendors deliver only the quantity needed for each day's assembly, at the specified time.

As the result of implementing the SGC Production System, Boeing has achieved the following savings:

Final Assembly
Factory Cycle Time Reduction:		41%
Inventory Reduction:
	Stores inventory:	43%
	WIP Inventory:	55%
Footprint (sq ft) Reduction:		46%

Final Assembly and Suppliers
Reduction in Cost of QA :		28%

Renton Site Footprint
Acres: 300 to 205
Covered Floor Space: 7.6M to 4.2M

As you can see from Boeing's experience (shorter process time, lower defect rates and overall lead-time, and reduced work space), Gemba Kaizen is a powerful way to improve any of your current systems. SGC's On-Site Consulting service demonstrates the practical aspects of Kaizen that can never be learned from books. Let SGC's experienced consultants assist you in developing the ultimate Kaizen engine for your business: concerted, continuous participation and mutual trust among all employees.