What is it all about?

The term Genba Kanri is the romanised translation of the Japanese term meaning: Genba: the real place (gen: real; ba, from bamen: place, scene, situation; i.e. the actual spot; the precise location. In a manufacturing company, the place where the value is added. Certain grammatical rules dictate that this may sometimes be pronounced alternatively as gemba'. Kanri: administration; control; management GK may be considered a 'professional approach' to undertaking all those things we need to do in terms of managing the day to day activities of our business, at operator, supervisor and manager level. This includes improving the 'status quo' Today, no-one can afford to rest on their laurels, and we are all striving for improvement. The illustration left depicts the typical approach to improvement. We traditionally rely on innovation to achieve results new products, new processes, new equipment. This tends to be unsettling, costs money, and often doesnt meet expectations. If, on the other hand, we start by making best use of what we already have, in terms of our human and physical resources, we are simply leveling up on best practice. Good days become the norm. Expectations are first made explicit (e.g. quality standards) and then we have to figure out the best, easiest, safest way of meeting these expectations. Standardisation alone actually yields benefits* as the average performance improves! Once competencies are established, people can get on with it and apply kaizen for themselves. * benefits such as productivity up 10~15%;
defects down by 90~95%

Why 'genba kanri'; why 'kaizen'? In a global economy we cannot be shy about adopting World Class practices! Survival is not compulsory!
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DETAILED EXPLANATION

What are the benefits of Genba Kanri?

Manufacturing people know that they have to improve - their quality, cost, delivery, productivity and all. Very often they get excited by the idea of a Workshop something that is going to make dramatic improvements in only a few days - which, for the investment of a little time and money will yield benefits every day thereafter and soon pay for itself. The trouble is that when we try to establish what it is we are trying to improve there is often no data! There are usually targets - which are regarded as something to aim for rather than a clear 'given' expectation - but they are often not achieved. 'Well, we do our best, but they're only targets!' is the usual attitude. There are all sorts of things which stop people achieving what is expected of them: breakdowns, staff absence, material delivery or quality problems, etc. When we take a look at the real situation on the shop floor to take that as our starting point, people say, 'Don't look at me, I'm not normally on this job', 'This machine is playing up today', 'We normally make this product on that line over there', 'These parts are from a different supplier' etc. OK, so we ask, 'How were you trained to do this job?', 'How is the machine supposed to be maintained, set and operated?', 'How do you change the line over?', 'What is the specification for the components?', and so on. We are considering: Is it simple, Is there a When was it last objective and Is it known? Is it observed? standard? improved? conspicuous? We often find that standards for these aspects of the job are unknown, unclear, out of date, or simply don't exist. Yet the people in the area are 'doing their best', each in their individual way. If we ask, for example, if the quality standard of a particular product is acceptable we're more likely to get an opinion than a definitive answer. If we conduct a Workshop in an environment like this we are almost certain to make significant improvements - but we cannot be confident that they will be sustained. If there is nothing to assure that equipment is going to be maintained, then reducing lead time and WIP, for example, will probably lead to a machine breakdown instantly stopping an entire process. If there is no system for Quick Response Quality Control then again the process will grind to a halt when deviations occur. If there is no appreciation of Standard Operations, and means of training people in them, everyone will continue to propagate their 'own best way' of doing the job. When it comes to changing the machine or the line over we'll not be able to find the required tools and equipment because there is no 5C appreciation.

In a GK company, somebody has asked the question, 'What exactly are we supposed to be doing - and how are we supposed to be doing it?!' This initially prompts scrutiny of standards for quality, cost and delivery. For example: What are the How do we How do we achieve How do we What are the significant features measure them at minimum know we are tolerances? of this product? them? cost and effort? meeting them?

This leads to the development of standards - of 'what' and 'how' for all aspects of the operation. These are linked by systems which ensure that the standards are mutually compatible (e.g. there's no point in having procedures for conducting condition monitoring of equipment if there is no capability to respond to problems reported). There are systems for dealing with deviations: 'Our target was 1000 units today, but we only made 970. How do we make good the shortfall and ensure that today's problems are not repeated?' The benefit of Genba Kanri is that all these avenues are covered. The role of the Supervisor or First Line Manager changes from that of fire-fighter, constantly responding to failures to meet (often unclear) expectations, to one in which he/she is simply applying, maintaining and improving standards. Targets are 'givens', not just something to aim for. We do what we are supposed to do, because we have done it before, we have figured out the best way of doing it, we know that it works, and we can rely on others to do what they are supposed to do. We, and our systems, are competent. We are confident in our actions and the actions of those around us. Confident in the knowledge that there are systems to cover most eventualities, we can concentrate on improving what we have. We perhaps don't know what new demands our customers may impose on us, but we have a solid foundation on which to build improvements.

We have developed a mechanism for identifying all the salient points of a manufacturing operation. This has 20 groups under the headings of Quality, Cost, Delivery, Safety & Environment, Operator Involvement and Organisation. We use this to benchmark against World Class standards and to map out an improvement programme which incorporates and builds on existing best practice in your organisation.

Basic Principles of Genba

Kanri
When visiting GK companies one cannot fail to be impressed by the use of tools and techniques for managing the day-to-day business. What is more, it is apparent that these are not just the current 'flavours of the month'. When questioned, one's hosts can explain or show the links between the various tools: 'This indicates our hourly / daily performance; this is what we do when there is a deviation; this is how we confirm the effectiveness of countermeasures....etc.' What may not be so obvious is what is in the hearts and minds of those using such tools, and maintaining healthy and effective systems! Over the years we have seen many common threads amongst such companies; these may be summarised as: Quality First
Quality is as defined and expected by our customers and consumers. Anything less is unacceptable. We adopt a quality attitude to our people, materials and equipment. This enables us to deliver - on time, in full, at minimum cost. These define expectations in terms of what we have to do and how we do it. They are simple, objective and conspicuous and reflect best practice. We establish, install and maintain them and use them as a basis for further improvement. Data enables us to measure conformance to standards. It clearly defines targets, priorities, achievements, deviations and improvements. By analysing data we are able to see patterns which help us to make decisions and guide our future actions. We pay attention to results, because they sustain healthy business; at the same time we focus on the processes that deliver the results. As they are mutually supportive we balance our efforts between the two. We have to align our people to common goals, and all must strive to achieve them. We give people the resources, competencies and confidence to achieve what is expected of them.

Respect for Standards

Speak with Data

Process and Results

Support & Direct

In our consulting work we are able to develop our clients' appreciation of these fundamental principles in a number of ways:

We can help to get the change process started by helping people to see things differently, and do things differently.

By explaining them in discrete seminars, or as a preface to shopfloor Workshops By 'walking the talk', supported by the leadership of our client companies By having people suspend their disbelief, act according to the concepts for a while, and see what results they can achieve By contrasting the above with what happens if we compromise on quality; use individual skill & judgement alone; avoid data; focus only on process or results; or simply let exhort people with threat of

punishment for failure

We tend to find, sometimes deep down, that people at all levels in the organisation really seek the same thing:

We know that there are certain things that we have to do and have if we are to achieve this:

And the basic principles must be in place if we are to succeed!

Through getting the people aligned with these principles we can start to change the way that they, collectively, conduct their business. The company becomes 'fitter' in its activities and develops a culture that is better able to respond to market demands.
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Genba Kanri Systems

On the one hand we have tools and techniques which we apply to make work easier or more convenient and in GK the work is that of accomplishing / managing the manufacturing process. On the other hand we have certain values and principles which we hold dear. What links the two? its no use an individual, or even a particular team figuring out their own best way of running the job if others go about things differently!

We all saw in Autumn 1999 how an incompatibility of imperial and metric measurements lead to the failure of a mission to the planet Mars. All on that NASA team were working to a common goal; all, undoubtedly, believed in Quality First, Speaking with Data, Process & Results and even followed standards. The problem was that two different standards were used! In GK we ensure that the many standards which dictate what we have to do and how we have to do it (and who, when) are not only aligned, but mutually supportive. There is no point having a standard which says, for example, that operators shall determine their way of working, if there is another standard that says direct employees have to account for every minute of their time in terms of parts/value processed. No point in having a standard for maintaining a machine if there are no personnel or opportunities to accomplish the maintenance. We cannot expect a job to be achieved in standard time if there are non-standard materials or conditions prevailing. A feature of GK systems is that they are closed to reflect PDCA - the Plan - Do - Check - Action cycle. There are processes and results. As live data emerges on results we modify our processes in order to ensure that we can meet expectations and improve upon them. The cycle is never-ending. For example, we perceive a potential for peoples performance to improve. We educate them (with knowledge) and train them (through hands-on activity) so that

they truly understand. We coach to ensure theyre on track. We then measure results to determine the change in behaviour. Are the trainees doing things differently by how much? We need to measure not only their performance, but understand through questioning, observation and analysis what for them has made the difference. What didnt make so much of an impact; why not? We then include more of what works well and less of the rest. Why a training example? This is a fundamental aspect of GK. If we truly believe that people are our finest asset, then we have to nurture and develop them. We expect everyone to manage their own part of the business according to standard practices so it follows that we need to inform, educate and coach them in these practices. A complimentary system provides a mechanism for skill evaluation:

As the training system supports the skill evaluation system, so skill evaluation becomes essential for ensuring that we have the required skills to operate the production process, fulfill personal development and succession plans, accommodate new products and processes, and ultimately meet the business plan.
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TQM Approach
The importance of quality both as a means of ensuring customer satisfaction and reducing cost has become increasingly recognised over the past thirty years. The philosophy has shifted from Quality Control to Quality Assurance to Zero Defects and beyond, while standards such as ISO 9000 have sought to level on the practice. Total Quality in fact means that quality is all pervasive through a companys products, processes, procedures and systems and thinking - and is practiced by all.

The question 'What is quality?' may be debated at length, and there are many definitions. For now, lets assume it primarily means 'Giving the customer what he/she wants', and 'consistency'. Consider a manufacturing process. There are a number of ways it may endeavour to ensure the customer gets what he/she wants.

1. The process can make good product, but is unreliable, and defects escape into the market. If customers complain their complaints are resolved. This is costly and may harm reputation.

2. Inspectors detect bad product at the end of the process and repair/reject it to protect the customers. This is costly and frustrating; deliveries will be delayed or costly buffers of finished goods required.

3. Defects are returned to source for rectification or rework. Costs remain, as in (2). There are delays in identifying problems so causes may not be apparent.

4. Defects are detected at source, causes will be more obvious. Delivery remains erratic, downstream customers are kept waiting, but at least they're not adding value to defective product.

5. Defects are prevented. Through improving products and processes we can assure delivery without incurring rectification costs. There are a number of things which we have to accept if we wish to achieve the scenario depicted in (5):

The customer knows what they want. We have to ask the right questions in order to define the specification. Market research may involve anticipating consumer needs; we need feedback from customers. We need data. We need materials and equipment capable of achieving what is expected, and products designed not only for market but for manufacture. We rely on those responsible for Design, Engineering and Sourcing to provide what is required. We have to accept responsibility for our own actions. People need to be trained, directed and motivated. We look to Personnel and Training for their support. We are all part of a team which is the Business; a team which is our particular Division or Department; and a team which consists of those with whom we work on a day-to-day basis. We can take pride in what we collectively achieve for our customers and shareholders, and satisfaction in playing our part as individuals. TQM primarily addresses the business as a whole, developing a state of mind consistent with the above. Three major divisions of a manufacturing company may be considered as illustrated left.

Whilst GK is consistent with this, and the same disciplines prevail in all three divisions, the prime focus for GK is Manufacturing and its immediate support areas: Six Sigma is a similar approach which uses the same tools and techniques, 'relabelling' some and according the title 'Black Belts' etc. to the facilitators. It's simple

(but not easy!) goal is to achieve six sigma capability of all business processes - a 3.4 ppb defect rate.

Just-In-Time (JIT) Approach

JIT, in manufacturing industry, is attributed largely to Taichi Ohno, of Toyota. He was inspired by his first visit to an American supermarket where he saw customers getting just what they wanted, when they wanted it. Of course the concept was not new - for example, in the catering trade and where goods are perishable, the nature of the product imposes similar demands. We are increasingly familiar with JIT in the High Street where items such as photographs, spectacles, cosmetics and music CDs are customised to order. Behind the scenes, in manufacturing industry, the same principles are being applied. With technology and fashion changing so rapidly, it makes little sense to hold stocks which may ultimately not be wanted. Even if we can be assured of eventually selling them, stock holding costs money, so we need to minimise stocks and add value which differentiates them as late as possible.

Why do we hold stocks at all if they are so costly? Well, customers can be fickle, so we need to assure them that they can have whatever they need whenever they want it - and it also takes time to make the product, transforming it from raw materials and sub-components into the finished article. If we actually take a look at the lead time - the time it takes for a product to pass through the entire process we find that most of this time is actually waiting time. It takes seconds to form a piece of metal; seconds to weld it to another; seconds to paint it, minutes to stove the paint, and perhaps a few minutes to assemble it to other components and package it. Yet that piece of metal will days - probably weeks or even months passing through the various manufacturing stages. Why? Because there is waste in the process - waste being anything that does not add value as far as the customer is concerned. Our main targets are 'WID'. we find Waste these in all sorts of jobs - on and off the shop floor. If there is difficulty - physical Irregularity or mental - there is a likelihood of somebody or something failing. We need to remove the problem. People Difficulty know what they are and are happier to get known problems out of the way before others are identified to them. Then we need to get the process under control - this is, after all one of the fundamental tenets of GK. Discover the causes of variation and iron out the irregularities. In our experience 95% of these are simply because people are not following standard procedures and methods. We now have the system under control - we have established a regular flow of product. We can now start to drain away the waste!

The Seven Deadly Wastes

Taking away the waste means that we are closer to our customers, We need to 'turn on the tap' when they want product, rather than filling buffers. A pull system, such as kanban helps us do this. Finally, we need to match the rate of production with the rate of consumption. This is known as the tact. For example, if the customer requires 60 pieces an hour, the tact will be one minute.

Flow Pull The main elements of JIT

Tact

Total Productive Maintenance (TPM) Approach

TPM is a facility / equipment based approach to assuring and improving processes. It is most appropriate in a continuous process, such as an oil refinery, where many of the typical inherent problems which JIT overcomes are not found. Capital and material costs by far outweigh labour costs. Nevertheless, we are reliant on our people to maintain and improve methods and systems, so TQC is often a precursor to TPM. With JIT, we are seeking to emulate continuous flow processes, so it becomes increasingly important that our equipment is capable and reliable, so many manufacturing companies are adopting TPM. . In its broadest sense, TPM is applied to the whole working environment procedures, standards, workplace, training and education, logistics, administration, etc. - for we want the best from these, just as we do from our equipment. It encompasses everything from routine cleaning of the workplace to what is currently becoming known a 'asset management'. Traditional 'maintenance' is not good enough in today's markets. Applying Total Productive Maintenance techniques ensures enhanced productivity through reduced cycle times, improved equipment capability - tighter tolerances and better material yields - reducing the time required for maintenance, and possibly increasing the range of the equipments activities. These gains are normally quantified using O.E.E. (Overall Equipment Effectiveness) as a measure which highlights availability, utilisation and the quality performance of equipment. A starting point for practical TPM activity is 5C (from the Japanese 5S) 1. Clearout
The first step is to decide what is needed and what is not needed to do the job - and get rid of the latter! This avoids having to work around clutter and waste time rummaging through redundant tools, materials & information.

2. Configure
Determine the most convenient place to keep things in, make it clear what is what and where it belongs. This avoids time wasted seeking things out. 'A place for everything, and everything in its place!'

3. Clean & Check

We now need to take a close look at the condition of what we've got. The act of cleaning enforces scrutiny, so that actual and potential problems can be spotted and rectified before they result in equipment failure. This gets TPM started.

4. Conformity
We don't want to lose what we've gained, so we need to establish procedures for maintenance: routinely monitoring condition; cleaning; lubricating; tightening; etc. Also set standards for operating and setting equipment, changing tools, etc.

5. Custom & Practice

Maintain the disciplines of the 5Cs whilst striving for better performance. Get more out of the facilities for less expenditure; develop peoples' skills in different areas of maintenance.

Genba Kanri Consultants

We are a consortium of independent consultancies who have worked for and with companies applying world class manufacturing techniques. Founder members learned - at first hand - the practices used in the heavy Engineering and Automotive industries in Japan, and applied them for themselves in the UK in the JAPAN 1980s, and ten years ago started to work with automotive suppliers in Europe. Initial TRAINING requests were to work with client company personnel on kaizen of their existing operations, to achieve rapid improvements in Quality, Cost and Delivery. Our approach includes not only assisting in the implementation of tools and techniques, OUR but helping clients to understand that a different way of 'doing' has to be accompanied by APPROACH a different way of thinking: we have to challenge our concepts as well as our actions! We have since expanded our activities in breadth and depth, now providing support in areas of manufacturing strategy and support function improvement, and have worked with CLIENTS a variety of manufacturing and service companies. We recognise that there are a plethora of tools, techniques, buzzwords and approaches around, and that - despite ever-increasing pressures in the market place - people can weary of new initiatives. Genba Kanri builds on existing strengths to develop an integrated approach to managing the valueadding process. Over the years we have developed expertise in twenty main areas which reflect the health of a manufacturing business. They are grouped under the headings of Quality, Cost, Delivery, Safety & Environment, Organisation and People. We have a system for diagnosing the prevailing conditions, and programmes for making improvement in all areas. These are not theoretical or academic approaches, but tried and tested practical means of making a difference up to the point where the client achieves sufficient momentum for self-sufficiency. We do not seek to create dependency in clients and recognise that some require very discrete and rapid solutions to particular problems. We network with others where specialist expertise is required. Our links to the JMA (Japan Management Association - umbrella organisation for such prestigious bodies as JIPM, JIPC, JAMC etc.) ensure that we stay abreast of cutting-edge approaches, whilst tailoring solutions to suit clients' own circumstances.

A much simplified summary of the approach in genba: