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© Abdul Latif Jameel IPR Company Limited. All Copyright and Other Intellectual Property Rights Are Fully Reserved. 1 1 © Abdul Latif Jameel IPR Company Limited. All copyright and other intellectual property rights are fully reserved. Kaizen Practices @ ALJ Eng. Nazeer Gari Director Quality Assurance & Kaizen Abdul Latif Jameel – Motors 16 December 2015 2 Agenda 1.Abdul Latif Jameel Overview 2.Kaizen 3.Toyota Global Content 4.Practice & Implementations 3 Abdul Latif Jameel Overview Ownership - Private family company Founded - 1945 Headquarters - Corporate: Jeddah, Saudi Arabia - International: Dubai, United Arab Emirates Employees - 16,500+ Operations - Operations in 31 countries across five continents: - MENAT (Middle East, North Africa & Turkey) - Europe - Asia Pacific - Sub-Saharan Africa - Latin America 4 © Abdul Latif Jameel IPR Company Limited. All copyright and other intellectual property rights are fully reserved. Abdul Latif Jameel Business Sectors Transportation Engineering & Financial Energy & Land & Advertising Consumer Manufacturing Services Environmental Real Estate & Media Products Services Developer of Distributorships Commercial Automotive Automotive Advertising Renewable Energy Integrated Distributor (New Vehicles) Vehicles Components Financing Agency Residential Projects Dealerships Industrial Real Estate Commercial Aftermarket Parts Energy Efficiency Outdoor Media (New Vehicles) Equipment Financing Property Investments Pre-Owned Logistics Automotive Consumer Goods Environmental Vehicles Accessories Financing Services Joint venture with 5 © Abdul Latif Jameel IPR Company Limited. All copyright and other intellectual property rights are fully reserved. Transportation 6 © Abdul Latif Jameel IPR Company Limited. All copyright and other intellectual property rights are fully reserved. Transportation Distributorships & Dealerships United Kingdom Germany Turkey China Dealerships Dealerships Distributor Dealerships - HQ: Wolverhampton - HQ: Nuremberg - HQ: Istanbul - HQ: Chengdu - Operating since: 2006 - Operating since: 2004 - Operating since: 2009 - Operating since: 1998 - ALJ Branches: 2 2 - ALJ Branches: 3 - ALJ Branches: 2 - ALJ Branches: 11 3 - Dealers: 57 - Total Network: 59 Monaco Dealerships 1 - HQ: Monaco - Operating since: 2003 - ALJ Branches: 1 59 1 11 Morocco 27 Distributors - HQ: Casablanca 60 32 - Operating since: 1995 3 - ALJ Branches: 11 431 - Dealers: 16 - Total Network: 27 Algeria Libya Egypt Saudi Arabia Japan Distributors Distributor Distributors Dealership - HQ: Algiers - HQ: Tripoli - HQ: Cairo Distributors - HQ: Tokyo - Operating since: 1993 - Operating since: 2013 - Operating since: 1999 - HQ: Jeddah - Operating since: 2005 - ALJ Branches: 7 - ALJ Branches: 1 - ALJ Branches: 7 - Operating since: 1955 - ALJ Branches: 1 - Dealers: 53 - Dealers: 2 - Dealers: 25 - ALJ Branches: 199 - Total Network: 60 - Total Network: 3 - Total Network: 32 - Wholesalers: 232 - Total Network: 431 7 © Abdul Latif Jameel IPR Company Limited. All copyright and other intellectual property rights are fully reserved. What is Kaizen? 8 © Abdul Latif Jameel IPR Company Limited. All copyright and other intellectual property rights are fully reserved. The Origin of Kaizen Japanese 改(KAI) + 善(ZEN) To modify, to change Think, make good, make better 9 What is KAIZEN? The Japanese word “Kaizen” means continuous improvement. + + + = + Waste Lead Time Productivity Quality GDI Profit 10 How Can You Generate More Profits? Traditional Formula Toyota Formula Sales Price = Cost + Profit Profit = Sales Price - Cost Selling Price is decided by the market Profit Sales Sales Price Profit Price Profit Profit Cost Cost Cost Cost (Monopoly) We need to reduce the cost price 11 7 Types of Muda (Waste) - Eliminating MUDA (waste) Costs/Time - 7 Kinds of MUDA (waste) 1) Overproduction 2) Waiting Cost 3) Transportation 4) Over Processing/Quality 5) Inventory/Stock 6) Motion (Persons' movement) Current capacity = Operation + waste 7) Correction/Rework 12 7 Types of Muda (Waste) The Pizza Business Imagine you have a small Pizza shop!!! 13 7 Types of Muda (Waste) 1) Over-Production 14 7 Types of Muda (Waste) 1) Over-Production Muda of stock resulting in… Over-Production will lead to other Muda! 15 7 Types of Muda (Waste) 2) Waiting 16 7 Types of Muda (Waste) 3) Conveying/Transportation 17 7 Types of Muda (Waste) 4) Over Processing/Over Quality Pizza 18 7 Types of Muda (Waste) 5) Inventory/Stock Pizza Pizza Pizza Pizza Pizza Pizza Pizza Pizza Pizza Pizza Pizza Pizza Pizza Pizza Pizza 19 7 Types of Muda (Waste) 6) Motion/Persons' Movement 20 7 Types of Muda (Waste) 7) Correction 21 TPS TOYOTA Production System (TPS) TPS aims to eliminate MUDA (waste) occurrence in the process or in between the processes. Long Lead Time Wasted Wasted Time Before TPS Process 1 Time Process 2 Process 3 Process 4 Process 5 Eliminate Wasted Time After TPS 1 2 3 4 5 Lead Time Reduction 22 Cultivating Kaizen With Kaizen Operation Business Cultivate Difference between KAIZEN Companies with Kaizen & their Competitors Competitors Time 23 Toyota Global Content 27 © Abdul Latif Jameel IPR Company Limited. All copyright and other intellectual property rights are fully reserved. Toyota Global Contents TOYOTA WAY ① Toyota Way（TW） Long-term prosperity and growth as an organization P D A ② Toyota Business Practices（TBP） C P ③ Hoshin Kanri（HK） A D C P P ④ （ A D A D On the Job Development OJD) C C P P P A D A D A D C C C TOYOTA WAY 2828 Toyota Way (TW) Challenge Continuous Improvement Kaizen. Genchi Genbutsu Respect. Respect for People Teamwork 29 TOYOTA Business Practices (TBP) Concrete Actions & Processes Drive & Dedication Customer First 1. Clarify the Problem Always Confirm the 2. Break Down the Problem Purpose of Your Work P 3. Set a Target Ownership and Responsibility 4. Analyze the Root Cause Actions Visualization (MIERUKA) 5. Develop Countermeasures Judgment Based on Facts Think and Act Persistently TBP 6. See Countermeasures D Through Speedy Action in a Timely Manner 7. Evaluate Both Results Follow Each Process with C and Processes Values Evaluat Sincerity & Commitment e Toyota Way 8. Standardize Successful Thorough Communication A Processes Involve All Stakeholders 30 What does “Problem” mean to you? 31 Definition of “Problem” Ideal Situation Gap = Problem Current Situation 32 Hoshin Kanri (HK) Ideal State P Company Level (Annual Policies) P A D Vertical A D C C P P A D A D P Group/BU Level C C A D P P Alignment C P P A D A D A D Division Level P C C C A D C P P P P P A D A D A D A D A D Department Level P C C C C C A D P P P C P P P A D A D A D A D A D A D Individual Level C C C C C C Nemawashi Horizontal Coordination 33 On the Job Development (OJD) What? Develop team members through “practice of daily work” Why? Develop human resources who can self-reliantly put TOYOTA WAY into practice Mutual TrustMutual & Respect Trust & Respect Motivation 34 How is The Toyota Way Different? TOYOTA WAY PRACTICE OTHER PRACTICES People Focused 35 How is The Toyota Way Different? TOYOTA WAY PRACTICE OTHER PRACTICES Incremental & Continuous Breakthroughs and Reversions 36 How is The Toyota Way Different? TOYOTA WAY PRACTICE OTHER PRACTICES To the People By the People 37 We Embed TOYOTA WAY Culture and Mindset at ALJ 38 Practice and Implementations 39 We Embed TOYOTA WAY Culture and Mindset at ALJ Culture and Mindset at WAY TOYOTA Embed We 40 5S Kaizen Idea Bank Quality Toyota Business Practices Control (Problem Solving) Circle Hoshin Kanri On the Job Development Executive Training Camp (2015) Competing to Achieve Kaizen Flag (2012) On the Job Development Practices (2011) Toyota Business Practices (2010) Toyota Global Content Workshop 41 (2008 - Onwards) Hoshin Kanri Practice Hoshin Board Sample Toyota Business Practices Sample Toyota Business Practices Sample Quality Control Circle Sample Get Fit Kaizen Marathon and Kaizen Flag • 1,500+ Kaizen Projects enrolled • 3,600+ associates were TBP OJD QCC trained (TBP & QCC) Kaizen Via HAS Via Marathon Hoshin Monitoring Hoshin Kaizen Flag 47 National Kaizen Marathon 48 Kaizen Idea Bank - KIB • 10,000+ Idea • 3,500+ Contributors • 25% Implementation 49 5S (Sort, Streamline, Shine, Standardize, Sustain) The Challenge of Personal Mastery and Efficiency 50 How has The Toyota Way Helped ALJ? Improved Guest Delight 100% GDI 90% 80% 70% Other Improvements: 60% 50% Market Share Gains 2010 2015 Increased Associate Engagement Reduced OPEX 51 Thank you 52 .
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