Kaizen Scheme

4 Dec, 2019

©2019 Tecumseh Products Company LLC

1 Objective & Scope

2 Classification of Suggestions & Benefits

AGENDA
3 Reward Criteria & It’s Process

4 Process Flow

5 Types of Rewards

6 Specified Format

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 Objective & Scope

SCOPE
OBJECTIVE o All the employees of Tecumseh (Including Temps, Workmen,
Apprentice & Staff

To promote employee involvement in o Suggestion in terms of Improvement in Safety, Productivity,

improving the procedures at Tecumseh and
building a work culture of continuous
improvement across the organization
Quality, Cost, Delivery, 5S (Design & Purchase ideas not to be
considered)
o Every suggestion which can be implemented inside the
premises of the plant.

o Recognition for best implemented suggestions to employees

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Classification of Suggestion Benefits to Company

Tangible Benefits • Quantitative benefits to company which can be defined

(Direct Cost Saving) in terms of Monetary savings (Recurring or One time)

Intangible Benefits • Qualitative benefits to company but does not give any
(Indirect Saving) monetary savings but are valuable for the organization

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 Reward System for Tangible Benefits to Company- Criteria 1
Benefits (choose one of the
following benefits)
Productivity Improvement
Quality Improvement
Downtime Reduction
Type. of Accidents
Type of control applied
2 Marks 3 Marks 5 Marks
Effective Very Effective Extremely Effective
2 % increase 3% increase 5% increase or above
Extremely Effective
Very Effective 40% Defect
75% Defect Reduction/ Considerable
Reduction/ Required Quality
Effective quality improvement observed which
achieved which was basic defined
25% Defect Reduction is important for the
/ desirable standard resulting in
Part/Product/Systems resulting in
improved customer satisfaction
customer delight
Effective
Very Effective 40% Equipment Extremely Effective 75% Equipment
25% Equipment
downtime Reduction downtime Reduction
downtime Reduction
Very Effective Extremely Effective
Effective Prevention of occurrence of Near
Prevention of occurrence of First Prevention of occurrence of Major
Miss
Aid Injury
Very Effective
Effective
3S Maintenance with automatic Implemented across
3S Maintenance with visual control
control
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 Reward System for Tangible Benefits to Company-Criteria 2

Scoring 2 Marks 3 Marks 5 marks

Adaptability / Applicability / Deployed on own machine/work Deployed on many machines Deployed many machine across
horizontal deployment place in his workplace/deptt. plant

Originality & diagnosis Idea /hints are taken ; but idea is Completely original and Kaizen solving long pending or
good & usefully developed inturn bringing improvement chronic problem and inturn
bringing improvement

Efforts Some efforts by others Considerable efforts by self & Considerable efforts made and
others no. of difficulties had to be
overcome by self only

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 Reward System for Tangible Benefits to Company-Criteria 3

Scoring 2 Marks 5 Marks 10 marks

Cost saving benefits (recurring / .Rs.500 to Rs.2,500 Rs.2501/- - rs.10000/- Rs. 10001/- -Rs.25000/
month)

Cost saving benefits 1500/- to 7500/- Rs. 7501/- to rs. 30000/- Rs.30001/- to rs.75000/-
(one time)

* Only New Cost Saving Idea in this category, cost avoidance is not considerable in this category

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Types of Rewards
Rewards Level for Regular employee’s:
• Plant level Kaizen (P)
• Department Level Kaizen (D)

2. Non – Quantifiable (Gift Award) (Based on total points on Total Points= Sum of Crtiteria
Categories 1,2,3 & 4): 1 + Criteria 2+Criteria 3 Score
Kaizen Reward
A) 15-20 points – Worth Rs.500
B) 10-14 points – Worth Rs.250
C) 7 – 9 points – Worth Rs.100
D) 6 points – Worth Rs.50
Note:
• Max. No. of members in a Kaizen team is restricted to 2. Gift
worth will be divided in such a case.
• Topic of Kaizen should address either reduction or elimination
of 16 Losses identified as per TPM philosophy

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Process Flow

Complete kaizen form & Suggestor Ensure proper

submit it to Shop In charge Completion of Form

Evaluation on
Kaizen Evaluation by Section Coordinator Parameters mentioned &
Shop In charge Allocation of points

Kaizen Implementation Implementation

with help of support function Section Coordinator possible or not ,
Maintaining of MIS

Implemented Kaizen
forwarded to Kaizen Send Received & implemented
Section Coordinator
Sub-Committee Kaizens every week

Implemented Kaizen Review Kaizen on weekly

forwarded to Kaizen Kaizen Committee Basis and forward to HR for
Sub-Committee Recognition by 30th of every month

Reward and Recognition Human Resource 5th of Every Month

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 16 Losses

Availability Losses Productivity Production Losses

Losses

• Machine Failure • Management Losses • Loss of Energy

Reduction • Motion Losses • Die,Jig & Tool Losses
• Setup Time Reduction • Line Organization • Yield losses
• Tool Change • Logistic
• Start-up Losses • Adjustments
• Minor Stoppages
• Speed Losses
• Defects & Rework
• Preventive Maintenance

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 Availability Losses
1. Breakdown loss (failure losses) - Losses due to failures. To attain zero failure, it is necessary to correct the misconception about
breakdown maintenance that failures are unavoidable

2. Planned Maintenance Time Loss (Shut Down Loss)- Time when equipment is shut down for maintenance. However shut down related
work generally affect the operating time rate of equipment. Shutdown related work must be regarded as a loss and reduction of shutdown
work time must be sought.

3. Setup Loss- e.g. Change of Dies, machining fixtures etc. Adjustments how to reduce, eliminate? One slot adjustment or trial or error till 3-4
components is tried.

4. Tool Change Loss / cutting blade losses -e.g. Change of Drill, tap, rammer, cutter etc. Stoppage losses caused by changing the cutting
blade due to breakage or caused by changing the cutting blade when the service life of the grinding stone, cutter has been reached

5. Start up Loss- e.g. furnace, paint shop oven, powerpack etc. Start up after holidays, Start up after lunch breaks

6. Minor stoppage loss- i.e. Frequent stoppage for short time from seconds to less than 5 minutes for recovery e.g. Component stuck to die
while stamping etc. To reduce minor stoppage, it is important to adequately analyze the phenomena involved and thoroughly eliminate
minor defects. The target number of minor defects is zero.

7. Reduce speed loss - e.g. 50 parts produced against standard of 53 parts as a cycle time increased to 9 min from 8.5 due to less
speed/feed

8. Defects and rework - i.e. any reworked or rejected product shows direct time loss due to poor quality
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 Productivity Loss

1. Management losses - e.g. Row material/ persons not available esp. poor planning. Waiting losses that are caused by management,
such as waiting for material, waiting for a dolly, waiting for tools, waiting for instructions, waiting for repairs of breakdowns, etc.

2. Operating Motion Loss (OML) - e.g. Excess motion like walking, bending, stretching etc. These include motion losses due to
violation of motion economy, losses that occur as a result of skill differences, and walking losses attributable to an inefficient layout.

3. Adjustment & Measurement loss - e.g. Frequent tool adjustment after few components. Work losses from frequent measurement
and adjustment in order to prevent the occurrence and outflow of quality defects.

4. Line organization loss - e.g. 75% manpower utilization due to poor line balancing. These are waiting time losses involving multi –
process and multi stand operators and line balance work in conveyor work

5. Logistics loss/ distribution losses - e.g. operator travels/ waits for want of material on stage.

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 Production Loss

3 major losses that impede efficient use of production resources

1. Energy losses- e.g. losses due to heat radiation, leakage of fuel, air, oil, losses, due to ineffective utilization of input energy (electric,
gas, fuel oil, steam, air and water etc) in processing . Etc. Because of electricity, fuel, utility cost represents a high percentage of the
total cost, all companies are striving to reduce them

2. Die/ Tool loss- e.g. lose of tool due to regrinding, poor life of molds etc, repairs of Dies/ Tools/ consumables. These are monetary
losses resulting from the mfg and repair of dies, jigs and tools necessary for the production of products

3. Yield loss- e.g. Excess material stock/ weight, Exclusive splashes etc…Material losses due to differences in the weight of the input
materials and the weight of the quality products.

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 Kaizen Committee

Name Department Role Name Department Role

Gaurav Munjal MED & OP-EX Member JV Rao Operations
BN Mishra Production Member Dinesh Sikka Operations Steering
Sunil Kumar Finance/IT Member Kapil Seth HR Committee
Anil Chahal MED Member Ruchi Babbar Finance
Saurav Sharma Maintenance Member

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Kaizen Detail Format
TECUMSEH PRODUCTS INDIA PVT.LTD.,
Ballabgarh
KAIZEN
Area / Dept Subject / Issue :
KAIZEN No.

M/c or Process Started on :

Need for improvement Completed on:
Contributed by Facilitator : Rajpal/Pawan

Prior to Improvement After Improvement

Improvement
Area
Quality
Cost Reduction
Productivity
Safety
5'S'
Enviornment
Cost incurred

Horizontal Deployment

Action Plan / Proposal Standardization

Area Status

Implemented All Lines Done

Authorized Signatory

Result & Savings

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THANK YOU