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Practical Program of Revolutions in Factories - EOQ

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«PRACTICAL PROGRAM Of REVOLUTIONS <strong>in</strong><br />

FACTORIES.20 KEYS» ® IN RUSSIA<br />

RUSSIAN BENCHMARKING CLUB<br />

“BUSINESS EXCELLENCE”<br />

RUSSIAN ORGANIZATION FOR QUALITY (ROQ)<br />

YURY SAMOYLOV<br />

VICE-PRESIDENT OF BENCHMARKING CLUB<br />

”BUSINESS EXCELLENCE”<br />

EXECUTIVE DIRECTOR<br />

RUSSIAN ORGANIZATION FOR QUALITY<br />

RUSSIAN ORGANIZATION<br />

FOR QUALITY<br />

(ROQ)<br />

«PRACTICAL PROGRAM Of REVOLUTIONS <strong>in</strong><br />

FACTORIES.20 KEYS» ® IN RUSSIA<br />

OUR MISSION<br />

To <strong>in</strong>troduce benchmark<strong>in</strong>g methods and develop Russian companies<br />

understand<strong>in</strong>g <strong>of</strong> necessity to use methods <strong>of</strong> improvements for their<br />

cont<strong>in</strong>uous bus<strong>in</strong>ess excellence<br />

1. Czech Republic<br />

2. Denmark<br />

3. United Arab emirates<br />

4. Estonia<br />

5. Germany<br />

6. Hungary<br />

7. India<br />

8. Ireland<br />

9. Italy<br />

10. Malaysia<br />

11. Mauritania<br />

12. Moldavia<br />

13. New Zealand<br />

14. Poland<br />

15. Russia<br />

16. Slovakia<br />

17. South Africa<br />

18. Sweden<br />

19. Switzerland<br />

20. Grate Brita<strong>in</strong><br />

21. USA<br />

22. Australia<br />

23. Ch<strong>in</strong>a<br />

24. Ukra<strong>in</strong>e


«PRACTICAL PROGRAM Of REVOLUTIONS <strong>in</strong><br />

FACTORIES.20 KEYS» ® IN RUSSIA<br />

MISSION IS BEING REALISED THROUGH THE PROGRAM<br />

«THE BEST PRACTICE – FOR THE BEST LIFE!»<br />

The GOAL <strong>of</strong> the <strong>Program</strong> is to create the network <strong>of</strong> Bus<strong>in</strong>ess Excellence<br />

Centers under supervision <strong>of</strong> Russian Benchmark<strong>in</strong>g Club “Bus<strong>in</strong>ess<br />

Excellence” where factories can exchange their best practices with their<br />

Russian and foreign partners to <strong>in</strong>crease their productivity and<br />

competitiveness<br />

«PRACTICAL PROGRAM Of REVOLUTIONS <strong>in</strong><br />

FACTORIES.20 KEYS» ® IN RUSSIA<br />

October 2005 at International conference <strong>of</strong> 20 Keys <strong>in</strong> Zagreb (Croatia)<br />

Yoshiyuki Kobayashi (Son <strong>of</strong> Iwao Kobayashi, founder <strong>of</strong> program) and<br />

ODI Partner Johan Benadie handled LICENSE for exploration <strong>of</strong> 20 Keys<br />

<strong>in</strong> Russia to Bus<strong>in</strong>ess Excellence Ltd. (ROQ)


«PRACTICAL PROGRAM Of REVOLUTIONS <strong>in</strong><br />

FACTORIES.20 KEYS» ® IN RUSSIA<br />

May 2005 the “20 Keys” book was translated from Japanese <strong>in</strong>to Russian<br />

language, issued and sent to all Russian regions, first experts tra<strong>in</strong><strong>in</strong>g for<br />

the program start. The Russian version <strong>of</strong> this book was presented <strong>in</strong><br />

Tokyo on the meet<strong>in</strong>g with the Russian delegation.<br />

«PRACTICAL PROGRAM Of REVOLUTIONS <strong>in</strong><br />

FACTORIES.20 KEYS» ® IN RUSSIA<br />

December 2005<br />

Start benchmark<strong>in</strong>g with Japanese Union <strong>of</strong> Scientists<br />

and Eng<strong>in</strong>eers (JUSE):<br />

- methods Toyota – “TPS”<br />

- ISO9000 ISO14000 OHSAS 18000 <strong>in</strong> Japanese factories<br />

- quality circles<br />

- best practice <strong>of</strong> TQM <strong>in</strong>troduction


«PRACTICAL PROGRAM Of REVOLUTIONS <strong>in</strong><br />

FACTORIES.20 KEYS» ® IN RUSSIA<br />

2006 there were implemented benchmark<strong>in</strong>g visits <strong>of</strong> Russian companies<br />

leaders to Japanese factories: Toyota, Todentsu, Sekisui, AISIN SEIKI Co.,<br />

Ltd., HINO, Mitsubishi Electric and many others.<br />

«PRACTICAL PROGRAM Of REVOLUTIONS <strong>in</strong><br />

FACTORIES.20 KEYS» ® IN RUSSIA<br />

Every year Russian Organization for Quality and<br />

Russian Benchmark<strong>in</strong>g Club organize Russian<br />

conferences devoted to World Quality Day and<br />

European Quality Week. These Forums are be<strong>in</strong>g<br />

conducted <strong>in</strong> Russian regions together with<br />

Regional Governments (2005 Saratov, 2006<br />

Moscow, 2007 Volgograd, 2008 Lipezk, 2009<br />

Kazan, 2010 Voronezh)<br />

www.vdkrf.ru


«PRACTICAL PROGRAM Of REVOLUTIONS <strong>in</strong><br />

FACTORIES.20 KEYS» ® IN RUSSIA<br />

On the eve <strong>of</strong> these forums “20 Keys” ® sem<strong>in</strong>ars and tra<strong>in</strong><strong>in</strong>gs are be<strong>in</strong>g<br />

conducted and benchmark<strong>in</strong>g visits are organized to the local companies and<br />

factories to exchange the best practices<br />

«PRACTICAL PROGRAM Of REVOLUTIONS <strong>in</strong><br />

FACTORIES.20 KEYS» ® IN RUSSIA<br />

International “20 Keys” sem<strong>in</strong>ars are be<strong>in</strong>g organized


«PRACTICAL PROGRAM Of REVOLUTIONS <strong>in</strong><br />

FACTORIES.20 KEYS» ® IN RUSSIA<br />

«20 Keys»®<br />

20 focus areas that will help your organization to build a holistic,<br />

susta<strong>in</strong>able cont<strong>in</strong>uous improvement culture<br />

To be competitive modern factory has to<br />

meet the follow<strong>in</strong>g challenges:<br />

BETTER<br />

To <strong>in</strong>crease the quality <strong>of</strong> the goods and<br />

services, maximum satisfy customer<br />

FASTER<br />

To reduce the lead time without<br />

<strong>in</strong>creas<strong>in</strong>g the cost<br />

CHEAPER<br />

Maximum returns should be <strong>in</strong>vested<br />

<strong>in</strong>to the capital goods development<br />

«PRACTICAL PROGRAM Of REVOLUTIONS <strong>in</strong><br />

FACTORIES.20 KEYS» ® IN RUSSIA<br />

<strong>Practical</strong><br />

<strong>Program</strong><br />

Of<br />

<strong>Revolutions</strong> <strong>in</strong><br />

<strong>Factories</strong><br />

«PPORF.20KEYS»® accumulates<br />

all well known approaches <strong>in</strong><br />

factory activity improvements<br />

and works as a<br />

INTEGRATOR


20<br />

Us<strong>in</strong>g <strong>in</strong>formation technology<br />

18<br />

Efficiency control<br />

17<br />

Production schedul<strong>in</strong>g<br />

16<br />

15<br />

Skill versatility and cross tra<strong>in</strong><strong>in</strong>g<br />

14<br />

Lead<strong>in</strong>g technology / site<br />

technology<br />

Conserv<strong>in</strong>g energy and material<br />

19<br />

Empower<strong>in</strong>g employees to<br />

make improvements<br />

13<br />

Elim<strong>in</strong>at<strong>in</strong>g waste<br />

Efficiency control<br />

Skill versatility and cross tra<strong>in</strong><strong>in</strong>g<br />

Empower<strong>in</strong>g employees to make improvements<br />

Quick changeover technology<br />

Quality assurance<br />

Workplace discipl<strong>in</strong>e<br />

Elim<strong>in</strong>at<strong>in</strong>g waste<br />

Production schedul<strong>in</strong>g<br />

Us<strong>in</strong>g <strong>in</strong>formation technology<br />

Lead<strong>in</strong>g technology / site technology<br />

Develop<strong>in</strong>g your suppliers<br />

Rationaliz<strong>in</strong>g the system / goal alignment<br />

12<br />

Kaizen <strong>of</strong> operations<br />

Reduc<strong>in</strong>g WIP<br />

Ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g mach<strong>in</strong>es and equipment<br />

Clean<strong>in</strong>g and organiz<strong>in</strong>g to make work easier<br />

11<br />

Develop<strong>in</strong>g your suppliers<br />

Quality assurance<br />

Zero monitor production<br />

Coupled production<br />

Kaizen <strong>of</strong> operations<br />

Conserv<strong>in</strong>g energy and material<br />

Small group activities<br />

1<br />

Clean<strong>in</strong>g and organiz<strong>in</strong>g to make work easier<br />

2<br />

Rationaliz<strong>in</strong>g the system / goal alignment<br />

Small Group Activities<br />

Reduc<strong>in</strong>g WIP<br />

4<br />

5<br />

6<br />

Quick changeover technology<br />

Zero monitor production<br />

Coupled production<br />

8<br />

Ma<strong>in</strong>ta<strong>in</strong><strong>in</strong>g mach<strong>in</strong>es and equipment<br />

Workplace discipl<strong>in</strong>e<br />

10<br />

9<br />

3<br />

7<br />

«PRACTICAL PROGRAM Of REVOLUTIONS <strong>in</strong><br />

FACTORIES.20 KEYS» ® IN RUSSIA<br />

IWAO KOBAYASHI<br />

THE FOUNDER OF “20 Keys”®<br />

«When all employees are aware<br />

<strong>of</strong> the company's position<br />

<strong>in</strong> relation to other enterprises,<br />

a true feel<strong>in</strong>g <strong>of</strong> competition is<br />

developed and they will do<br />

whatever they can to w<strong>in</strong>!»


«PRACTICAL PROGRAM Of REVOLUTIONS <strong>in</strong><br />

FACTORIES.20 KEYS» ® IN RUSSIA<br />

Rational (LEAN) th<strong>in</strong>k<strong>in</strong>g<br />

Control Added Value<br />

Start Level<br />

<br />

<br />

World Class<br />

Level<br />

«PRACTICAL PROGRAM Of REVOLUTIONS <strong>in</strong><br />

FACTORIES.20 KEYS» ® IN RUSSIA<br />

VISUALISATION OF LEVEL OF IMPROVEMENT FOR ALL EMPLOYEES<br />

Level 1<br />

Level 2<br />

Clean<strong>in</strong>g & Organis<strong>in</strong>g<br />

Seiri (Sort and order), Seiton (keep place<br />

<strong>in</strong> order), Seiso (Clean up), Selketsu<br />

(Ma<strong>in</strong>ta<strong>in</strong> cleanl<strong>in</strong>ess).<br />

• 4 S to make your job easier! •<br />

Level 5<br />

1<br />

4S <strong>in</strong> the 20 Keys program is not someth<strong>in</strong>g<br />

imposed on you, but someth<strong>in</strong>g that helps you<br />

because these tools make your job simple and<br />

easy. The first step is to build company-wide<br />

common understand<strong>in</strong>g and then to steadily climb<br />

from level 1 to level 5. 4S is the basis <strong>of</strong><br />

productivity improvement as it l<strong>in</strong>ks with the<br />

other Keys <strong>in</strong>cluded <strong>in</strong> the program. Dur<strong>in</strong>g the<br />

course <strong>of</strong> its implementation, you may also see<br />

improvement <strong>in</strong> the other Keys. This is due to<br />

the l<strong>in</strong>kage effect between all the Keys, which <strong>in</strong><br />

turn is an <strong>in</strong>dication <strong>of</strong> adequate spread<strong>in</strong>g <strong>of</strong> 4S<br />

throughout the workplace. 4S makes your work<br />

easier and more mean<strong>in</strong>gful.<br />

Level 3<br />

Level 4


«PRACTICAL PROGRAM Of REVOLUTIONS <strong>in</strong><br />

FACTORIES.20 KEYS» ® IN RUSSIA<br />

SYSTEM IS BEING CREATED<br />

BY PEOPLE AND FOR PEOPLE!<br />

WHERE EACH PERSON IS AN INDIVIDUAL<br />

INTEGRAL SYSTEM!<br />

= <br />

SYSTEM HAS TO MEASURE IMPROVEMENTS OF<br />

COMPANY ON EACH LEVEL OF “MATURITY” ON EACH<br />

20 KEY DIRECTIONS!<br />

Sample (benchmark) is ideal<br />

world class company hav<strong>in</strong>g<br />

100 po<strong>in</strong>ts<br />

(20 EYS 5 po<strong>in</strong>ts = 100 POINTS)<br />

k17<br />

k16<br />

k18<br />

k19<br />

k20<br />

k1<br />

5<br />

4<br />

3<br />

2<br />

1<br />

0<br />

k2<br />

k3<br />

k4<br />

k5<br />

k6<br />

k15<br />

k7<br />

k14<br />

k8<br />

k13<br />

k12<br />

k11<br />

k10<br />

k9


«PRACTICAL PROGRAM Of REVOLUTIONS <strong>in</strong><br />

FACTORIES.20 KEYS» ® IN RUSSIA<br />

Team 1 Team 2<br />

k17<br />

k16<br />

k15<br />

k19 k20<br />

k18<br />

k14<br />

k13<br />

k12<br />

5 k1 4<br />

3<br />

k2<br />

k3<br />

k4<br />

2<br />

1<br />

k5<br />

0<br />

k6<br />

k11<br />

k7<br />

k8<br />

k9<br />

k10<br />

start level 2006 - 24,5<br />

present level 2009 - 36,2<br />

goal for 2010 - 50,1<br />

k17<br />

k16<br />

k15<br />

k19 k20<br />

k18<br />

k14<br />

k13<br />

k12<br />

5 k1 4<br />

3<br />

k2<br />

k3<br />

k4<br />

2<br />

1<br />

k5<br />

0<br />

k6<br />

k7<br />

k8<br />

k9<br />

k10<br />

k11<br />

start level 2006 - 25,9<br />

present level 2009 - 44,3<br />

goal for 2010 - 62,8<br />

«PRACTICAL PROGRAM Of REVOLUTIONS <strong>in</strong><br />

FACTORIES.20 KEYS» ® IN RUSSIA<br />

Russian quality specialists are be<strong>in</strong>g tra<strong>in</strong>ed to make analyses us<strong>in</strong>g 20 Keys


THE PRODUCT<br />

IS BEING MAID<br />

BY LINE<br />

OPERATORS<br />

WHO AND FOR WHOM HAS TO<br />

PROVIDE SUPPORT <br />

CUSTOMERS<br />

DIRECTOR OF<br />

COMPANY<br />

FACTORY<br />

LEADER<br />

EXTRA COSTS<br />

DO NOT<br />

PRODUCE<br />

PRODUCT<br />

PODUCTION<br />

MANAGERS<br />

LINE MANAGERS<br />

SHIFT<br />

LEADERS<br />

OPERATORS<br />

THE PRODUCT<br />

IS BEING MAID<br />

BY LINE<br />

OPERATORS<br />

WHO AND FOR WHOM HAS TO<br />

PROVIDE SUPPORT <br />

CUSTOMERS<br />

OPERATORS<br />

SHIFT<br />

LEADERS<br />

EXTRA COSTS<br />

DO NOT<br />

PRODUCE<br />

PRODUCT<br />

LINE MANAGERS<br />

PODUCTION<br />

MANAGERS<br />

FACTORY<br />

LEADER<br />

DIRECTOR OF<br />

COMPANY


Development <strong>of</strong> Team Model<br />

Confidence<br />

Support<br />

Confidence<br />

Confidence<br />

Directions<br />

Support<br />

Directions<br />

Directions<br />

Support<br />

Directions<br />

DELEGATION OF POWER<br />

- MOVEMENT INTO FUTURE<br />

WORK OF SGA AND TEAM ASPIRATION FROM THE VERY BEGINNING<br />

RESULTS:<br />

- Team members got <strong>in</strong>fo about CSMS<br />

- Assessed 1<br />

- Found out “WHAT DOES WORK DIFFICULT”<br />

- Made proposals for improvements<br />

NEXT STEPS:<br />

- Plan changes<br />

- Plan and PDCA cycle


Method <strong>of</strong> “Bra<strong>in</strong> storm”<br />

1. Stage <strong>of</strong> ideas generation<br />

Rules<br />

• Ideas should be as many as possible<br />

• Criticism is to be prohibited<br />

• Verification <strong>of</strong> idea is not need<br />

• Development <strong>of</strong> colleagues ideas are encouraged<br />

• Each idea is fixed<br />

• Team is up to 15 members<br />

• Duration up to 40 m<strong>in</strong>utes<br />

2. Stage <strong>of</strong> idea analyses<br />

Rules<br />

• To f<strong>in</strong>d rational kernel <strong>in</strong> each idea<br />

• Duration from some hours up to several days<br />

• Quantity is up to situation<br />

System <strong>of</strong> idea management


SGA<br />

-MINI BUISNESS AREAS


FOTOSTANDARDS OF WORK PLACES<br />

VOCABULARY ON THE SYSTEM<br />

MANAGEMENT


Success picture …<br />

• We are all collectively plann<strong>in</strong>g<br />

• We are all collectively implement<strong>in</strong>g<br />

• We are all collectively controll<strong>in</strong>g<br />

• We are all collectively mak<strong>in</strong>g corrections<br />

• And all collectively celebrat<strong>in</strong>g our victory<br />

PROCESS OF CONTINIOUS<br />

IMPROVEMENTS


GROW UP OF ECONOMIC EFFECT FROM IMPLEMENTED IDEAS<br />

600<br />

597<br />

500<br />

THE TOTAL IDEAS<br />

400<br />

IMPLENETED<br />

353<br />

380<br />

300<br />

275<br />

200<br />

100<br />

59<br />

139<br />

200<br />

41<br />

105<br />

150<br />

0<br />

2003 2004 2005 2006 2007 2008 (6 )<br />

NOVGOROD<br />

2007 Total Imple me nt<strong>in</strong>g Effe c t, kRUR 3 942,42<br />

2008 Total Imple me nt<strong>in</strong>g Effe c t, kRUR 532,73<br />

CHUDOVO<br />

2007 Total Imple me nt<strong>in</strong>g Effe c t, kRUR 3 342,71<br />

2008 Total Imple me nt<strong>in</strong>g Effe c t, kRUR 1 934,85<br />

INTERNATIONAL PROJECT<br />

“STRIVE TO EXCELLENCE!<br />

OPERATE LIKE TOYOTA!”


Thank you very much for your attention !<br />

I <strong>in</strong>vite all <strong>of</strong> you to attend<br />

20 Keys International Conference <strong>in</strong> Russia<br />

October 9-13, 2011, Moscow – Sankt-Petersburg!<br />

Yury Samoylov<br />

l. (7-495) 771-6652<br />

b. (7-985) 211-0912<br />

E-mail usamoylov@mirq.ru<br />

benchmark<strong>in</strong>gclub@mirq.ru<br />

www.mirq.ru<br />

www.benchmark<strong>in</strong>gclub.ru<br />

www.vdk2007.ru

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