Kaizen Event Agenda

Kaizen Event Agenda

Past Student

Jack Welch Management Institute

Professor Richard Chua

JWMI550 Operations Management

February 4, 2018

1

Improvement to Internal Review Portion of Work Order Processing

Potential Kaizen Events

The Events listed are derived from the value stream map on page 4.

• The % C&A that is received for Internal Review is low at 75%. This indicates that the Statement of Work (SOW) Development is making too many errors. The SOW development must be further looked at to determine the best way to improve quality.

• The % C&A that is received for Implementation is low at 80%. This points to design issues that are causing errors in either the design itself or the parts ordered. The Design process will need to be reviewed for improvements.

• The Lead Time for materials and parts is excessive and will need to be reduced to make the flow more efficient.

• The Process Time to update documentation is too great. The drawing and procedure change processes need to be reviewed. It could be that the engineers are putting more detail than is required into these updates.

• The Rolled % C&A indicates that over 2/3rd of all products are returned, due to defect, sometime during a project. This is too high and needs to be reduced by providing better quality products.

Chosen Kaizen Event and Why:

The Kaizen event will be held to look into the % C&A for the Internal Review block. The quality of the SOW needs to substantially improve which will increase the % C&A. The Rolled % C&A is not good at 26.9%. The biggest contributor to this poor rolled value is the Internal Review block. A Kaizen event needs to be focused and one mistake many groups make is trying to do too much in one Kaizen. So, the scope will be limited to the Internal Review block and not the entire value stream map. “If the scope is too large you run the problem of never implementing an improvement” (McMahon, 2015).

Kaizen Objective:

The objective is to improve the quality of the SOW and plan for the implementation of these changes.

Kaizen Scope:

The scope of this kaizen includes all SOWs worked by the engineering department. Smaller SOWs that are developed by project implementers are not included in this event because they are significantly less complicated and do not have the same quality issues.

2

Kaizen Event Agenda

Day 1 – Training then Define/Measure/Analyze Time Session Topic/Objective Lean Tools Output/Deliverables Rationale

8:00 - 9:00 Greeting and Group Interaction N/A N/A Get group comfortable with each other

9:00 - 11:00 Kaizen DMAIC training All N/A

Provide basic understanding of the Kaizen process and become failure with the various lean tools that will be used

11:00 - 12:00 Lunch

12:00 - 12:30

Define Phase - Review project charter, review project schedule and identify inputs, outputs and key players SIPOC

Project charter, SIPOC diagram showing customers and deliverables

SIPOC diagram used to set boundaries and help team understand inputs and outputs and key contributors

12:30 - 1:00

Measure Phase - review value stream map (VSM) of entire process (update as required) and explain problem with Internal Review block Value Stream Map

Updated value stream map, understanding of % C&A issue, improvement goals, way to measure results

It is important to understand background of the Internal Review block, to have a broad view of the entire Work Order process using the Value Stream Map and to have a clear picture of issue with SOW development.

1:00 - 3:00

Analyze Phase - Analyze data showing problem with % C&A. Determine Cause and discuss impact

Cause and Effect diagram

Causes of high % C&A documented. Fishbone Diagram

The fishbone diagram is the main focus of this phase. It helps identify the root cause of the 75% C&A for the Internal Review block of the VSM

Day 2 – Improve/Control Time Session Topic/Objective Lean Tools Output/Deliverables Rationale

8:00 - 8:15 Day1 recap - preview of day2 N/A N/A Reminder of day 1 accomplishments and look forward to day 2

8:15 - 11:00

Improve Phase - Development of ways to improve consistency of SOW preparation SMART Goals

Set specific goals as a target.

Set SMART Goals. SMART Goals are Specific, Measurable, Attainable, Relevant, and Time-Specific

11:00 - 12:00 Lunch

12:00 - 1:00 Improve Phase (continued) - Poka-Yoke (mistake proofing)

Improvement solution to improve quality and consistency of SOW preparation

Look into ways to mistake proof SOW preparation, i.e., use of template that limit input.

1:00 - 3:00

Control Phase - this answers the question of how the solutions will be implemented in improving % C&A Process Control Plan

Process Control Plan showing how to implement and monitor improvements

The process control plan is used to show how to implement and monitor improvements. A quality product is vital to insure flow through.

Day 3 - Prepare/Deliver Report Time Session Topic/Objective Lean Tools Output/Deliverables Rationale

8:00 - 8:15 Day2 recap - preview of day3 N/A N/A Reminder of day 2 accomplishments and look forward to day 3

8:15 - 10:00

Prepare Final Report - report is to include the VSM, Fishbone diagram, SMART goals, and Process Control Plan PowerPoint Presentation

Presentation developed for upper management to get buy-in. It condenses the Kaizen showing the results and how they were obtained.

10:00 - 11:30 Deliver Final Report All listed above Approval to implement

The goal is for upper management to buy into the proposed improvements so implementation can begin immediately

3

Kaizen Event – Explained

Number of Days:

This process takes two and a half days. Two days are dedicated to analyzing the process for improvement and one half day is used to pull together the final report and deliver it to upper management. The Internal Review block is not extremely complicated and two days should be enough to thoroughly exam it and provide improvements.

Sequence for Session Topics:

The issue to be resolved is providing better consistency and quality in the development of SOWs. The sequence is based on first establishing a common understanding with key stakeholders so that analysis can be done by the group in the Kaizen event to improve the quality and consistency in the development of SOWs.

Lean Tools:

The lean tools are: SIPOC diagram, VSM, Fishbone diagram, SMART goals, Poka-Yoke, and Process Control Plan. The SIPOC diagram and VSM were used to help clarify the problem. The Fishbone diagram will help the team determine causes of the problem. SMART goals are used to set expectations and to keep process accountable. Poka-Yoke is a lean tool to mistake-proof a process. The team will look for ways of implementing safeguards that will help keep errors out. A Process Control Plan is the formal plan for implementing controls and monitoring and maintaining the process.

Session Outputs:

First day outputs are SIPOC diagram, updated value stream map, improvement goals, and Fishbone diagram. These products all work toward clearly defining the SOW development issue. The second day outputs include SMART goals, Poka-Yoke solution, and Process Control Plan. The final day is dedicated to presenting the results of the Kaizen, and management approval of our implementation recommendations.

How Agenda Supports the Kaizen Objective and Scope.

This Kaizen event is needed to improve the Work Order development process in use by ACME. The SOW development is specifically being targeted for improvement. There is a need to improve the quality and consistency of SOWs. Only SOWs being worked by the engineering department are affected by these changes.

4

Value Stream Map for Work Order Processing

References:

George, M., Rowlands, D., Price, M. and Maxey, J. (2005). Lean Six Sigma Pocket Tool Book. McGraw-Hill Publisher. New York, NY

McMahon, T. (2015). 10 Common Mistakes To Avoid On Your Next Kaizen Event. A Lean Journey website. Retrieved from http://www.aleanjourney.com/2015/10/10-common-mistakes- to-avoid-on-your.html