Accounting & Finance Professionals as Change Agents Why should the Accounting & Finance Professional be involved in kaizen outside of their own function? Ø Strong analytical skills Ø Provide outside set of eyes Ø Develop collaborative relationships Ø Great ideas can come from anyone Help teach effective kaizen skills to others 1
Kaizen methodologies Ø Kaizen or rapid improvement events Ø Value Stream Mapping events Ø A3s Ø 3P Ø Daily incremental improvement Ø Longer term improvement projects Kaizen methodologies Ø All are based on Deming s PDCA Ø All are fact based go see, observe current conditions Ø All are best when practiced as a team sport Ø All should apply target condition thinking Ø All should apply set based concepts The Accounting & Finance Professional should be familiar with each 2
Kaizen methodologies Ø Kaizen or rapid improvement events l Short duration improvement efforts to address specific, pre-defined problems or processes using a team approach l There is a bias towards action Ø Value Stream mapping events l For radical system improvement over 3-12 months using a cross-functional team approach l More of a planning activity Kaizen methodologies Ø A3s Ø 3P l A process that guides the user(s) through the PDCA process using a document/template l For longer term improvement efforts that require collaboration between parties l Can use an event format as a kick off l For radical improvement in process and/or product using a cross functional team approach 3
Definition Ø Production Preparation Process or Product & Process Preparation Ø 3P is a disciplined, methodical procedure to facilitate the rapid evaluation of ideas for product design and production processes l Ideally the product is designed currently with the production process History Ø Developed by Chihiro Nakao of the Japanese consulting firm Shingijutsu Ø Though not a Toyota term, the principles are practiced by Toyota Ø Can be used for new products, existing product re-design, new process-only design, even design of an entire facility 4
The Basic Process Ø Concurrent design of the product and process Ø Prototype the product and the process Product Planning Function Definition Product Trystorming Narrow Options & more trystorming Hold trial & select Product and Process design Production Planning Process Trystorming Narrow Options & more trystorming Detailed Product Design Detailed Process Planning Process Pilot 3P General Principles Ø Collaboration between functions Ø Creativity before capital Ø Quick and simple rather than slow and elegant Ø Alternative or set-based driven ( 7 ways ) Ø Simulate, simulate, simulate 5
What makes this different? Ø Encourages consideration of alternatives, discourages narrowing too quickly Ø Encourages rapid experimentation ( trystorming ), discourages elegant testing of hypotheses Ø Not linear, but iterative learning Ø Cross-functional collaboration beyond what is traditionally practiced ( throw it over the wall ) Thinking like a 12 year old the Nakao Method Why think like a 12 year old? Ø Break down preconceived notions and concepts Ø Overcome limiting factors that were prescribed to us as trained engineers and professionals Ø Children of this age use trial and error to discover what is necessary and what works Freeing your mind to consider all possibilities! 6
Several key techniques Ø 7-Ways Ø Bio-mimicry Ø Physical Modeling Look to apply these concepts in all other kaizen methodologies when possible! Ø 7-Ways l Identify seven alternatives for whatever the problem is Product function Process function l Stretches the creative thought process l Allows for a collaboration of more ideas l Consider starting with examples from nature 7
Ø Bio-mimicry l Why nature? Gets people thinking out of the box The origin of many historic breakthrough innovations can be found in nature There is a purpose or function for everything in nature Ø Physical Modeling l Why physical modeling? Makes the fuzzy tangible Utilizes more of the senses Increases the learning Allows for greater collaboration 8
The 3P Process Ø l Step 1: What is the true function of the product/process? What problem is the product solving for the customer? By transforming raw materials to meet customer needs, what purpose does it serve? What function(s) solve that problem? Drop your own concerns and bias about the function. Do not think of the function as good or bad, just think of the function which you are addressing. Choose the predominant one(s) l Step 2: Define the essence of the function What are the intrinsic properties of the function? Describe them using key words Sketch what is happening Guide turn Clamp Rigidity shear Swivel Key Words Fasten oscillate spin brake slide press lock 9
l Step 3: Identify examples of key words from nature Avoid man-made examples Move Attach Cling Adhere Spin Attach Hinge Float Cling l Step 4: Sketch Examples Zoom in to details of example Group common examples Examine in Detail Group Common Examples Shear Attach Hinge Sketch the Examples Nature 10
Ø Step 5: Understand how the phenomena works or operates Muscle (Vastus Lateralis) Socket Lining From: To: 105 degrees rotation Force uniform 48-94 degrees flex Muscle ((Gracilus) Ø l Step 6: Combine ideas from nature and create designs Each team member identifies seven ways or seven designs Do not be afraid to propose anything Sketch out the designs 11
10/12/13 v Translating examples from nature to technical solutions Protect Identify v Translating examples from nature to technical solutions Accumulate Cool 12
l Step 7: Select seven proposals to build Combine proposed designs, as appropriate Build the prototypes using readily available materials Prototypes must exhibit the function(s) desired This is referred to as moonshine Select based on pre-defined criteria Keep it simple Think about what you need to test or prove or disprove your hypothesis. Determine the easiest way to do this. Ø Build Prototypes 13
Ø Step 8: Conduct experiments and trials l Collect real data and evaluate l Consider use of videotape for future reference (i.e. more moonshine ) l Collect the data in such a way that it is comparable between proposals l Document methods of data collection. You may will be repeating these tests in the subsequent steps Ø Step 9: Select best three designs Ø l Rate each against the criteria, not against each other l Use a scale of 1 for poor, and 5 for excellent (no zeroes) l Score assigned will be based on majority l Total the scores Combine ideas, as appropriate l Quickly change model(s) and re-evaluate The bias is always towards Trystorming! More is learned by doing rather than talking about it 14
Ø Evaluating & agreeing on best design concepts Rate each alternative against defined criteria to collapse and eliminate alternatives...quickly Ø Evaluating & agreeing on best design concepts 15
Ø Step 10: Present to management, select best design(s) l Representatives should be from design, sales, manufacturing engineering, production, tooling, machine design, quality, purchasing, other personnel l Present the three best designs Remember to consider the seven flows in each proposal l Have physical models or prototypes available l Have evaluation results available Simulate and Implement Ø Combined prototype design 16
10/12/13 v Simulate, simulate, simulate! Make the fuzzy tangible Ø Use all the senses Ø v Simulate and Implement Ø Final design and build 17
Measure results Measurement Target Improvement Actual Achieved Cycle Time 93% Touch Time 82% Yield 60% 70% Productivity 33% 33% Pre setup Time 75% 90% Change-over 70% 90% Exercise (~45 minutes) Ø Working in groups, select a product or process Ø Complete Steps #1-#5 l Clearly define the function (select one if multiple functions exist) l Identify seven examples from nature Use the Internet as necessary l Identify seven design concepts (Step #6) 18
Summary Ø Always look to apply these concepts during any improvement effort, if not precisely as prescribed, then in spirit l Encourage identification of multiple alternatives if team is heading down the single silver bullet path l Encourage simulation of any type ( air guitar, sketching) so a team can better understand what they are considering References Ø Both are available from Productivity Press 19