Obeya presentation

OBEYA OPERATIONS

Tearing Down the Walls to

Achieve Breakthrough Performance

Sam MacPherson, Lean Transformation Sensei, The Lean Leadership Academy™ Bill Levealle, General Manager, Castle Metals Aerospace, Los Angeles, CA

Robert Porter, Operations Manager, Timken Aerospace, Rutherfordton, NC (910) 217-LEAN

www.leanleadershipacademy.com

What is an Obeya?

A Room with a View

• The Obeya, or “The Big Room”, dates back to its early days of Toyota, in Japan.

• First time visitors to Toyota’s Corporate HQ in Japan are surprised at the large open office areas and the lack of cubicles isolationism.

• The Theory behind Obeya is based on a simple idea: Dedicate time and space to coordination and problem-solving and organizational barriers will be minimized.

• The ability to maintain Proper Problem Awareness in Real-time, listen to Team-member concerns, make discoveries, resolve problems together, collaborate, accelerate leader and team-member development and reach our full potential is critical to a Lean Organization

• The Obeya promotes coordination, strategy and flexibility while leveraging the expertise and support of teammates from diverse areas.

• The Result: Effective solutions and actions that can be developed and implemented quickly.

Toyota Thailand

There is Always Room for Kaizen In Coordination!

TMC Global

Launch Obeya

Focus Obeya

Focus Obeya Focus

Obeya

Focus Obeya Project War

Rooms SQDC/PDCA A3 Problem

Solving Jishuken rooms

Business Obeya

(Executive offices) Business Process

Layout Obeya Centralized data collection, prioritizing and action planning

Global Launch Obeya

When developing a new vehicle, managers responsible for decision making in design, production engineering, and manufacturing gather in one place to shorten lead-time through real-time communications & simultaneous engineering

Focus Obeya

Business Obeya

(Engineering)

Business Obeya (Mfg)

Business Obeya (Sales)

Types of Obeya

Global Camry Launch TMM Australia

Toyota University

Toyota Motor Sales

Toyota University

Camry Global Launch Toyota Mfg Australia

Large Complex Obeya

• Large Open Office areas • Accommodates dozens of team-members • Manufacturing Operations • Sales and Finance • Design Engineering • Manufacturing Engineering Potential Issues: • Risks being too formal and rigid • Interoperability of IT between operations • Sensory overload

Toyota Motor Sales and Finance

Gap Card Suggestions

Anyone in the Toyota organization can enter the Obeya and contribute a suggestion by filling out a red card or red Post-it ® note. The purpose it to accept anyone’s input. An obeya or department leader is assigned to address the Gap and only when the gap is closed is the Gap Card taken down from the Obeya wall.

Small-Focused Obeya

• Focused w/Defined Purpose • Specific Projects • Jishuken or Team room • A3 Problem Solving away for

noisy gemba environment • Limits group size by design • Economical • Closed rooms melt down

barriers • Encourages idea contribution

PDCA/Problem Solving Process Layout Model

LEAN LEADERSHIP ACADEMY

Obeya Operations

Castle Metals Aerospace Los Angeles

Background

• Manufacturer of Aircraft Engine Parts, Various ‘Aero Structure’ Components, Aircraft ‘Complex Subsystem’ Components and Distributor of Exotic Alloys / Specialty Metals

• Castle Metals Aerospace Began ‘Lean’ Journey in January 2012

• Los Angeles was chosen as “Pilot Facility” • Compelling Need for ‘Cost Basis’ Improvement

and Improvement in Key Performance Metrics

Why adopt ‘Advanced’ Lean Business Processes? (Zone Control & Obeya Operation)

• Critical ‘End Use’ applications of our products: – Commercial & Business Airplanes: 737, 747, 767, 787,

A320, A350, G150, G450, G550, G650 – Defense: F-35 JSF, F-15, F-18, C-17, C-130, Apache III – Space: Delta IV, Atlas V, Falcon, Dragon, SLS, New

Shepard – Various other DoD applications

• ‘-0- Defect’ Tolerance & 100% OTD of Parts and Product is Required by Customer Base

Castle Metals Aerospace Obeya “Management Cadence”

• 6:45 am ‘Hot Start’ • 9:20 am JSP Meeting • 11:30 am ‘Mid Day’

Huddle • 3:00 pm ‘PFEP’

Meeting • 4:00 pm End of Day

Meeting

Daily JSP Meeting (Joint Sales and Production)

What We Learned in ‘Obeya’ Operations & ‘Zone Control’

• Previously: Measured Shift Production only.

• Did not Monitor the Use of Routine ‘Consumables’ in Production.

• Applauded: ‘Over-Production’ when it infrequently occurred

• Hourly Production Records by ‘Mfg. Zone’ increased Understanding of Production Rates per Shift and Variances

• Better Utilization of Resources

• Much better grasp of Internal ‘Costs’ per shift

• Capacity, O/A Increased • WIP, Defects, and ‘Starving’

& ‘Waiting’ decreased

Before: After:


• Patterns of Work & Production varied by Operator

• Resulted in Inconsistent and Non Predictive Repair & Maintenance “pitch”

• ‘Non Standard’ Work created variance in Part ‘Fit’ and ‘Tolerance’

• All Operators use same Machine ‘set-ups’

• Predictable R&M Schedule replaces Equipment ‘Wear’ Parts before breakdown reducing downtime

• Predictable & Repeatable Tolerance on Parts eases ‘Part Fit’ at Customer Assembly

Before: After:

In the “Information Flow” Realm, Our “No Cubical Walls” Obeya Deployment Reduces the “Waste” of Walking and Improves

Communication through Face to Face communication, Administrative Team-member Problem Awareness and Engagement

Obeya, Operations & Production Control Work in ‘Close Proximity’

Traffic Department “No Cubicles Walls” Environment

Obeya Operations: “Sales”

What We Learned in ‘Obeya’ Operations & ‘Zone Control’ “Sales”

• Salespeople measured on Monthly & Quarterly Basis

• Sales “Pipeline” by Sales Person reviewed and Submitted Monthly with Wins & Losses reviewed

• Monthly Conference Calls with Remote Salespeople only

• All Inside Salespeople have Two Hour Takt Time for Order Entry.

• “Top 5” Progress of “Pipeline” Opportunities discussed weekly with Outside Sales via Conference Call.

• Also on Call: Discussion of Competitor Pricing, Significant Actions

Before: After:

Reflections on Implementing Obeya & Zone Control

• Mechanism for ‘Plant Shop Floor’ Problem Identification and Problem Resolution. – Makes Problems Visible – Must be prepared to Address all Problems that may arise – Reduced ‘Un-Planned’ Downtime by 71% – Reduced ‘Key Value Stream’ Cycle Time from Order to Cash

by 62% initially, with ongoing improvements. • Reduces Operator “Struggles” and Improves Morale • Requires Daily Commitment & Diligence from Management

– Requires GM, Regional Operations Manager, Area Manager, Group Leader, Team Leader have “Deep” Job Knowledge

• Builds Teamwork and Improves ‘Associate’ Relations reflected by Vastly improved ‘Employee Engagement’ Survey Results

‘Obeya’ Operations & ‘Zone Control’ = Breakthrough Performance Improvement

& Sustainability

“Happy” Faces on our Customers!!

LEAN LEADERSHIP ACADEMY

Zone Control Timken Shiloh, Rutherfordton, NC

1. Notification of Problem

3. Audible Alarm

4. Team Leader Response

5. Op Center Communication

7.Problem Solving Tools

8. Data Collection 9. Data

Analysis

2. Visual Identification

6. Response Team

10. Problem prevention re-occurrence

Background

• 3 distinct flow paths serving different markets and sales networks, Distribution and OE

• Timken Shiloh began ‘Lean’ Journey in December 2010

• Machine Tool Value Stream was chosen as the plant pilot flow path

• Compelling Need for step improvement in production output, productivity, cost, customer service, schedule attainment and On time delivery to promise

Why accept the challenge of a lean transformation?

• Cyclical demand cycles of three distinct product platforms: – Aerospace: OE customer base, complex long lead-time supply

chain and demand profile. Customer requirements, significant and variable customer to customer

– Machine Tool: High precision product ABEC 9, tied into automotive business cycles, primarily a distribution supply chain requiring short lead-times with little forecast visibility or accuracy

– Commercial: Largely off highway, distribution stocking and lower complexity, less demand variability

• ‘-0- Defect’ Tolerance , High Customer Service expectation

across multiple customer profiles and significant competition to reduce cost

Timken Shiloh “Management Cadence”

• 7:45 am ‘Plant Fast Response Meeting’

• 10 -11 am Line PDCA’s • 11-12 am Critical Point

Gemba walks • 3:30 pm JSP review • 7-8 pm Line PDCA’s • Bi-Monthly Process

Reviews • Monthly Hoshin/Kojo

Kanri reviews

Daily Joint Sales & Production PDCA

27

Cross functional team PDCA meeting - Daily Production Plan - Ahead or Behind - Line Down A3 Report Outs

Materials

Quality

Engineering

Operations Manager

Scheduling

Team Leaders

Group Leaders

Plant Manager

Lean Analyst


• Help chain was 4 hours, loosely followed

• Rarely produced objective results

• Did not realize deviations from plan in real time reducing opportunity to drive mitigation and corrective action

• Help chain 1 hour with rigid operator and support compliance

• Documented processes driving A3 thinking and prevention reoccurrence

• Hour by hour tracking and reporting driving action at the time and point of occurrence

Before: After:

Before 240 Minute Chain of Response

After 60 Minute Chain of Response

29

Help Chain In Action


• Little understanding of actual performance to standard

• Quick fix to “get back running”

• ‘No standard work leading to variation in output, flow and product

• All Operators use same Machine ‘set-ups’

• Robust repairs with corrective actions developed to prevent reoccurrence where possible

• Standard work for operating associates and leadership driving consistent and rhythm

Before: After:

Before After

32

Audit Process – Operator Owned

No Audit Process, No SUSTAIN

Grind wheels at distance

Grind wheels in workstation

5S Event: Machine Tool Team: Zone Team Leader, Operators

Reflections on Implementing Obeya & Zone Control

• Implementation of Andon system. – Required a change in culture, thinking and discipline at all

levels of the organization – Absolute support top down – Within 60 days, achieved

• 29% improvement in output • 17% improvement in productivity • 12% improvement in schedule attainment and on time delivery.

• Improved associate engagement and morale • Continue to build and improve problem solving skills across

the organization – Tendency to revert back to what we are good at, used to, quick fix

versus permanent, robust repair solutions

The Shiloh Operations Leadership Team

Establishing an Operations Obeya

Management

Leadership at the Source

“TPS style improvement depends on the creative efforts of people led by managers and work team leaders with extreme attention to detail in the execution of daily management techniques.”

“Having (a) proper awareness of problems and an extremely low tolerance for the current condition

is a proper attitude.”

-Isao Kato: Father of Standardized Work and Toyota’s Supervisor Leadership Development Program

How to Build Your “Big Room” A Phased Implementation

Approach in Your House of Lean

Just-In-Time “Right part, right

amount, right place, right time”

Jidoka “Intelligent Automation”

“Quality from the Source” (In-station Process Control)

“Make Each Process The Customer”

“Make Problems Visible”

“Stop and notify about Abnormalities” “Error-Proof”

“Separate Man from Machine”

Leveled Production (heijunka) Kaizen Standardization

Stability and Reliability in Man, Machine, Methods, Materials

Takt-time: Produce at the Pace of

Sales

“Continuous Flow”

“Pull System” In sequence of demand

Small lot sizes, frequent Change-overs

Continuous Improvement Spirit of Challenge

Kaizen – Continuous Improvement Genchi-Genbutsu – “Go and See”

Respect for Others Respect

Teamwork

Obtain a Profit and Grow by Increasing Customer Value Through the Elimination of Waste, Burden, and Fluctuation Highest Quality - Lowest Cost - Shortest Lead Time

Phase 1 Obeya • Process Stability • Work Standards • Schedule

Attainment Focus

Phase 3 Obeya • Full SQDCPM • Organizational

Problem Solving • A3 Management Phase 2 Obeya

• Flow Focus • Standardized

Work • TPM Integration • Level Production

Phase 4 Obeya • Deployment Focus • TPS Integration • External

Connections • Full SQDCPM

Phase 5 Obeya • Full Hoshin

Integration • Sales Obeya • Engineering

Obeya

Start with Visual Management for of each level of the House of Lean.

As you mature each level “The House” the nature of the Obeya

Evolves and Transforms.

The Truth Telling Room Open Visual meeting space and Office

Environment adjacent to senior executives desks

No Walls - Direct Communications between customer service, production control, lean supply chain/materials management/production engineering

GTS>PDCA Flow Visual Connection to Hoshin Production Status Board Integrated with Andon System Break Down Maintenance/Quality

Dispatcher System Extreme Problem Awareness and

Urgency Dynamic Leadership Obeya Director Leadership Engagement Next 24 Shift Activity Breakdown Visual 30-60-90 Day Demand Planning

Area

Operations Center Obeya Model Equipm

ent Reliability (Fix it Right)

Gemba Kanri Plans For Zones and Value Streams

TPM Advancem

ent Plan

Quality Advancement Plan (Do it Right)

Voice of the Customer Quality Delivery Price Service Innovation Growth

Safety Quality Delivery Cost Productivity Morale Dashboard

Current Operations Production Status Board “Yamazumi Board”

Management Cadence Kami Shibai Visual Control Board

Hoshin , Kojo, and Baby A3 Plans

Dispatcher Operations

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Status

Obeya Operations Center in Action

Plant Quality Manger And

Scheduler at the Gemba

Maintenance Mgr And Operations Center Director

Andon Status Awareness

Plant Operations Manger Discussing

Hourly Production Status Update by Group Leader with

Value Stream Managers at Obeya Production Status Board

Single Minute Breakdown Response Team PDCA’s Red Zone response performance

Obeya Team conducts PDCA daily to improve

Obeya Operations

Obeya Team prepares to Go to the Gemba for Red Zone Condition

Obeya Just in Time and Jidoka

“I think the ideal situation of the Obeya should be the full integration of People and Data which mimics the process. Utilizing the latest technology of human interface communication to promote ‘Just in Time’ in human processed information with Jidoka considerations.”

Casey Ng Retired General Manager

Toyota Motor Manufacturing Australia