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© Abdul Latif Jameel IPR Company Limited. All copyright and other intellectual property rights are fully reserved.
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Kaizen Practices @ ALJ Eng. Nazeer Gari Director Quality Assurance & Kaizen Abdul Latif Jameel – Motors 16 December 2015
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Agenda
1.Abdul Latif Jameel Overview
2.Kaizen
3.Toyota Global Content
4.Practice & Implementations
Abdul Latif Jameel Overview
Ownership - Private family company
Founded - 1945
Headquarters - Corporate: Jeddah, Saudi Arabia - International: Dubai, United Arab Emirates
Operations - Operations in 31 countries across five continents: - MENAT (Middle East, North Africa & Turkey) - Europe - Asia Pacific - Sub-Saharan Africa - Latin America
Employees - 16,500+
© Abdul Latif Jameel IPR Company Limited. All copyright and other intellectual property rights are fully reserved.
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Abdul Latif Jameel Business Sectors
© Abdul Latif Jameel IPR Company Limited. All copyright and other intellectual property rights are fully reserved.
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Advertising & Media
Advertising
Agency
Outdoor Media
Energy & Environmental
Services
Renewable Energy
Energy Efficiency
Environmental
Services
Land & Real Estate
Developer of
Integrated
Residential Projects
Commercial
Property
Investments
Joint venture with
Financial Services
Automotive
Financing
Real Estate
Financing
Consumer Goods
Financing
Consumer Products
Distributor
Engineering & Manufacturing
Automotive
Components
Aftermarket Parts
Automotive
Accessories
Transportation
Distributorships
(New Vehicles)
Dealerships
(New Vehicles)
Pre-Owned
Vehicles
Commercial
Vehicles
Industrial
Equipment
Logistics
Transportation
© Abdul Latif Jameel IPR Company Limited. All copyright and other intellectual property rights are fully reserved.
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Transportation Distributorships & Dealerships
United Kingdom
Dealerships
- HQ: Wolverhampton
- Operating since: 2006
- ALJ Branches: 2
Monaco
Dealerships
- HQ: Monaco
- Operating since: 2003
- ALJ Branches: 1
Morocco
Distributors
- HQ: Casablanca
- Operating since: 1995
- ALJ Branches: 11
- Dealers: 16
- Total Network: 27
Algeria
Distributors
- HQ: Algiers
- Operating since: 1993
- ALJ Branches: 7
- Dealers: 53
- Total Network: 60
Libya
Distributor
- HQ: Tripoli
- Operating since: 2013
- ALJ Branches: 1
- Dealers: 2
- Total Network: 3
Egypt
Distributors
- HQ: Cairo
- Operating since: 1999
- ALJ Branches: 7
- Dealers: 25
- Total Network: 32
Germany
Dealerships
- HQ: Nuremberg
- Operating since: 2004
- ALJ Branches: 3
Turkey
Distributor
- HQ: Istanbul
- Operating since: 2009
- ALJ Branches: 2
- Dealers: 57
- Total Network: 59
Saudi Arabia
Distributors
- HQ: Jeddah
- Operating since: 1955
- ALJ Branches: 199
- Wholesalers: 232
- Total Network: 431
Japan
Dealership
- HQ: Tokyo
- Operating since: 2005
- ALJ Branches: 1
China
Dealerships
- HQ: Chengdu
- Operating since: 1998
- ALJ Branches: 11 2 3
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© Abdul Latif Jameel IPR Company Limited. All copyright and other intellectual property rights are fully reserved.
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© Abdul Latif Jameel IPR Company Limited. All copyright and other intellectual property rights are fully reserved.
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What is Kaizen?
The Origin of Kaizen
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改(KAI) + 善(ZEN) To modify, to change Think, make good, make better
Japanese
What is KAIZEN?
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The Japanese word “Kaizen” means
continuous improvement.
Waste Productivity Quality GDI Profit
+ + = + Lead Time
+
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Sales Price = Cost + Profit
Profit
Cost
Sales
Price
Cost
Profit
(Monopoly)
Traditional Formula Toyota Formula
Selling Price is decided by the market
Profit
Cost
Profit
Cost
We need to reduce the cost price
Sales
Price
Profit = Sales Price - Cost
How Can You Generate More Profits?
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Cost
Current capacity = Operation + waste
- Eliminating MUDA (waste) Costs/Time -
7 Kinds of MUDA (waste) 1) Overproduction
2) Waiting
3) Transportation
4) Over Processing/Quality
5) Inventory/Stock
6) Motion (Persons' movement) 7) Correction/Rework
7 Types of Muda (Waste)
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The Pizza Business
Imagine you have a small Pizza shop!!!
7 Types of Muda (Waste)
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1) Over-Production
7 Types of Muda (Waste)
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1) Over-Production
Muda of stock resulting in…
Over-Production will lead to other Muda!
7 Types of Muda (Waste)
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2) Waiting
7 Types of Muda (Waste)
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3) Conveying/Transportation
7 Types of Muda (Waste)
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4) Over Processing/Over Quality
Pizza
7 Types of Muda (Waste)
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5) Inventory/Stock
Pizza
Pizza
Pizza
Pizza Pizza Pizza
Pizza
Pizza
Pizza
Pizza Pizza
Pizza
Pizza
Pizza Pizza
7 Types of Muda (Waste)
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6) Motion/Persons' Movement
7 Types of Muda (Waste)
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7) Correction
7 Types of Muda (Waste)
TPS
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Process 3 Process 1
1 2 3 4 5
Lead Time Reduction
Before TPS
After TPS
Process 2 Process 4 Process 5 Wasted
Time
Eliminate Wasted Time
TOYOTA Production System (TPS)
TPS aims to eliminate MUDA (waste) occurrence in the process or in between the processes.
Wasted
Time
Long Lead Time
Cultivating Kaizen
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Competitors
Difference between
Companies with Kaizen &
their Competitors
Bu
sin
ess
O
pe
ratio
n
With
Kaizen
Cultivate
KAIZEN
Time
© Abdul Latif Jameel IPR Company Limited. All copyright and other intellectual property rights are fully reserved.
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Toyota Global Content
Toyota Global Contents
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Long-term prosperity and growth as an organization
TOYOTA WAY
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TOYOTA WAY ① Toyota Way(TW)
② Toyota Business Practices(TBP)
④ On the Job Development(OJD)
③ Hoshin Kanri(HK)
Toyota Way (TW)
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Continuous
Improvement
Challenge
Genchi Genbutsu
Kaizen.
Respect for
People
Respect.
Teamwork
TOYOTA Business Practices (TBP)
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Evaluat
e
1. Clarify the Problem
2. Break Down the Problem
3. Set a Target
4. Analyze the Root Cause
5. Develop Countermeasures
6. See Countermeasures
Through
7. Evaluate Both Results
and Processes
8. Standardize Successful
Processes
Concrete Actions & Processes
Customer First
Always Confirm the
Purpose of Your Work
Ownership and
Responsibility
Visualization (MIERUKA)
Judgment Based on Facts
Think and Act Persistently
Speedy Action in a Timely
Manner
Follow Each Process with
Sincerity & Commitment
Thorough Communication
Involve All Stakeholders
Drive & Dedication
A
C
D
P
TBP
Toyota Way Values
Actions
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What does “Problem” mean to you?
Definition of “Problem”
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Ideal
Situation
Current
Situation
Gap = Problem
Hoshin Kanri (HK)
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Ve
rtica
l A
lign
me
nt
Horizontal Coordination
Company Level (Annual Policies)
Division Level
Department Level
Individual Level
Group/BU Level
Ideal State
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Nemawashi
On the Job Development (OJD)
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Mutual Trust & Respect Mutual Trust & Respect
Develop team members through “practice of daily work”
What?
Develop human resources who can self-reliantly
put TOYOTA WAY into practice
Why?
Motivation
How is The Toyota Way Different?
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TOYOTA WAY PRACTICE OTHER PRACTICES
People
Focused
How is The Toyota Way Different?
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TOYOTA WAY PRACTICE OTHER PRACTICES
Incremental &
Continuous
Breakthroughs
and Reversions
How is The Toyota Way Different?
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TOYOTA WAY PRACTICE OTHER PRACTICES
By the
People
To the
People
We Embed TOYOTA WAY Culture and Mindset at ALJ
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Practice and Implementations
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We Embed TOYOTA WAY Culture and Mindset at ALJ
To
yo
ta B
usin
ess P
racti
ces
(Pro
ble
m S
olv
ing
)
Ho
sh
in K
an
ri
On
th
e J
ob
De
ve
lop
me
nt
Ka
izen
Id
ea B
an
k
Qu
ality
Co
ntr
ol
Cir
cle
5S
Executive Training Camp
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(2012) On the Job
Development Practices
(2010) Toyota Global Content
Workshop
(2015) Competing to Achieve
Kaizen Flag
(2008 - Onwards) Hoshin Kanri Practice
(2011) Toyota
Business Practices
Hoshin Board Sample
Toyota Business Practices Sample
Toyota Business Practices Sample
Quality Control Circle Sample
Get Fit
Kaizen Marathon and Kaizen Flag
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• 1,500+ Kaizen Projects
enrolled
• 3,600+ associates were
trained (TBP & QCC)
TBP OJD QCC
Kaizen
Marathon
Kaizen
Flag
Hosh
in M
onito
ring
Via
HA
S
National Kaizen Marathon
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Kaizen Idea Bank - KIB
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• 10,000+ Idea • 3,500+
Contributors • 25% Implementation
5S (Sort, Streamline, Shine, Standardize, Sustain)
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The Challenge of Personal Mastery and Efficiency
How has The Toyota Way Helped ALJ?
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Improved Guest Delight
Other Improvements:
Market Share Gains
Increased Associate
Engagement
Reduced OPEX
100%
90%
80%
70%
60%
50%
2010 2015
GDI
Thank you
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