1 99:59:59,999 --> 99:59:59,999 [Music] 2 99:59:59,999 --> 99:59:59,999 The video that you're 3 99:59:59,999 --> 99:59:59,999 about to see is being created to 4 99:59:59,999 --> 99:59:59,999 demonstrate some of the basic philosophy 5 99:59:59,999 --> 99:59:59,999 and principles of the Toyota Production 6 99:59:59,999 --> 99:59:59,999 System, or as we call it today, 7 99:59:59,999 --> 99:59:59,999 lean thinking. Lean manufacturing. 8 99:59:59,999 --> 99:59:59,999 Or lean administrative. 9 99:59:59,999 --> 99:59:59,999 The ideas apply equally to any segment 10 99:59:59,999 --> 99:59:59,999 of the business. 11 99:59:59,999 --> 99:59:59,999 But we take them into the kitchen to try 12 99:59:59,999 --> 99:59:59,999 to get them out of all of those areas, 13 99:59:59,999 --> 99:59:59,999 so that people can watch without being 14 99:59:59,999 --> 99:59:59,999 encumbered by predispositions that they 15 99:59:59,999 --> 99:59:59,999 have about their current jobs. 16 99:59:59,999 --> 99:59:59,999 It is a go-see video, where we ask people 17 99:59:59,999 --> 99:59:59,999 to watch and become engaged, which is also 18 99:59:59,999 --> 99:59:59,999 a critical part of being lean. 19 99:59:59,999 --> 99:59:59,999 So join us and enjoy. 20 99:59:59,999 --> 99:59:59,999 It's amazing what we can learn 21 99:59:59,999 --> 99:59:59,999 from our own intuition if we will only 22 99:59:59,999 --> 99:59:59,999 watch and see, what's going on 23 99:59:59,999 --> 99:59:59,999 in the process. 24 99:59:59,999 --> 99:59:59,999 Two of the most important points of 25 99:59:59,999 --> 99:59:59,999 what we call lean manufacturing 26 99:59:59,999 --> 99:59:59,999 involve direct observation of the process. 27 99:59:59,999 --> 99:59:59,999 And then, once we understand what we see, 28 99:59:59,999 --> 99:59:59,999 effective use of countermeasures to remove 29 99:59:59,999 --> 99:59:59,999 the problems that we see. 30 99:59:59,999 --> 99:59:59,999 And in particular, 31 99:59:59,999 --> 99:59:59,999 the use of what we call Kaizen. 32 99:59:59,999 --> 99:59:59,999 Kaizen is a Japanese word that means 33 99:59:59,999 --> 99:59:59,999 "small change for the better." 34 99:59:59,999 --> 99:59:59,999 Many small changes for the better, 35 99:59:59,999 --> 99:59:59,999 and in particular, it means small changes 36 99:59:59,999 --> 99:59:59,999 that are created from the intuition, 37 99:59:59,999 --> 99:59:59,999 experience and common sense of the people 38 99:59:59,999 --> 99:59:59,999 who do the work. 39 99:59:59,999 --> 99:59:59,999 Too often, we overlook these opportunities 40 99:59:59,999 --> 99:59:59,999 and as Mr. Ono and Mr. Shingo 41 99:59:59,999 --> 99:59:59,999 at the Toyota Motor Works discovered, 42 99:59:59,999 --> 99:59:59,999 almost 9/10 of the time 43 99:59:59,999 --> 99:59:59,999 between paying and getting paid, 44 99:59:59,999 --> 99:59:59,999 in our business, involves waste -- 45 99:59:59,999 --> 99:59:59,999 which can be identified through 46 99:59:59,999 --> 99:59:59,999 direct observation if we will only watch. 47 99:59:59,999 --> 99:59:59,999 So today we have a process 48 99:59:59,999 --> 99:59:59,999 for everyone to watch. 49 99:59:59,999 --> 99:59:59,999 Every shop floor, of course, is different. 50 99:59:59,999 --> 99:59:59,999 And we need to choose a shop floor which 51 99:59:59,999 --> 99:59:59,999 is easy to bring to many people 52 99:59:59,999 --> 99:59:59,999 and one in which you all can 53 99:59:59,999 --> 99:59:59,999 provide some intuition, because you have 54 99:59:59,999 --> 99:59:59,999 done the process yourself. 55 99:59:59,999 --> 99:59:59,999 So we pick a very simple process 56 99:59:59,999 --> 99:59:59,999 and that process is making toast. 57 99:59:59,999 --> 99:59:59,999 Now it is a simple process. 58 99:59:59,999 --> 99:59:59,999 Uh, but it does involve a machine, 59 99:59:59,999 --> 99:59:59,999 a toaster. And tools. A knife. 60 99:59:59,999 --> 99:59:59,999 Conveyance equipment. A plate. 61 99:59:59,999 --> 99:59:59,999 It involves a customer. 62 99:59:59,999 --> 99:59:59,999 In this case, it's -- my wife -- 63 99:59:59,999 --> 99:59:59,999 is the customer. 64 99:59:59,999 --> 99:59:59,999 And it involves a person who is doing 65 99:59:59,999 --> 99:59:59,999 the work and that will be me. 66 99:59:59,999 --> 99:59:59,999 So I invite you to come to my shop floor 67 99:59:59,999 --> 99:59:59,999 where we can watch the process 68 99:59:59,999 --> 99:59:59,999 very carefully and watch with an eye 69 99:59:59,999 --> 99:59:59,999 for improvement to try to understand what 70 99:59:59,999 --> 99:59:59,999 can be made better in this process. 71 99:59:59,999 --> 99:59:59,999 Watch the video and then we'll get your 72 99:59:59,999 --> 99:59:59,999 thinking before we continue with 73 99:59:59,999 --> 99:59:59,999 an improvement. 74 99:59:59,999 --> 99:59:59,999 I'm making some toast for my wife. 75 99:59:59,999 --> 99:59:59,999 [Rustling noises] 76 99:59:59,999 --> 99:59:59,999 [Toaster pops] 77 99:59:59,999 --> 99:59:59,999 Geez. 78 99:59:59,999 --> 99:59:59,999 [Muttering to himself] 79 99:59:59,999 --> 99:59:59,999 [Sighs.] 80 99:59:59,999 --> 99:59:59,999 Honey, I made you some toast! 81 99:59:59,999 --> 99:59:59,999 Is it raisin toast? 82 99:59:59,999 --> 99:59:59,999 OK. I hope you enjoyed watching 83 99:59:59,999 --> 99:59:59,999 the before condition, and I'll bet 84 99:59:59,999 --> 99:59:59,999 since you were watching with 85 99:59:59,999 --> 99:59:59,999 an eye for improvement, you saw lots of 86 99:59:59,999 --> 99:59:59,999 things that could be improved. 87 99:59:59,999 --> 99:59:59,999 This, in fact, is what happens when we 88 99:59:59,999 --> 99:59:59,999 truly have direct observation. 89 99:59:59,999 --> 99:59:59,999 You know, we're all so much creatures 90 99:59:59,999 --> 99:59:59,999 of habit that we come to work, all of us, 91 99:59:59,999 --> 99:59:59,999 trying to do a good day's work, 92 99:59:59,999 --> 99:59:59,999 and we work around the problems. 93 99:59:59,999 --> 99:59:59,999 You know, the common expression is, 94 99:59:59,999 --> 99:59:59,999 whatever it takes to get the job done. 95 99:59:59,999 --> 99:59:59,999 We're not focused on improvement when 96 99:59:59,999 --> 99:59:59,999 we're trying to get our jobs done. 97 99:59:59,999 --> 99:59:59,999 We're just focused on trying to get 98 99:59:59,999 --> 99:59:59,999 things done in spite of all the problems 99 99:59:59,999 --> 99:59:59,999 that crop up. 100 99:59:59,999 --> 99:59:59,999 But this time you came and watched 101 99:59:59,999 --> 99:59:59,999 the process with an eye for improvement. 102 99:59:59,999 --> 99:59:59,999 And what are the things that you saw? 103 99:59:59,999 --> 99:59:59,999 I'll bet you saw, for example, 104 99:59:59,999 --> 99:59:59,999 that I did an awful lot of walking around. 105 99:59:59,999 --> 99:59:59,999 We call that waste of motion. 106 99:59:59,999 --> 99:59:59,999 You saw me walk back and forth, 107 99:59:59,999 --> 99:59:59,999 perhaps four times. 108 99:59:59,999 --> 99:59:59,999 You say, well, did that add any value 109 99:59:59,999 --> 99:59:59,999 to the function of making toast? 110 99:59:59,999 --> 99:59:59,999 So we look for that sort of thing 111 99:59:59,999 --> 99:59:59,999 and we try to reduce it. We look for 112 99:59:59,999 --> 99:59:59,999 ways to reduce steps and motion. 113 99:59:59,999 --> 99:59:59,999 And in fact, if we were able to move 114 99:59:59,999 --> 99:59:59,999 the toaster closer to the bread, 115 99:59:59,999 --> 99:59:59,999 that would reduce that particular 116 99:59:59,999 --> 99:59:59,999 motion altogether. This is what we call 117 99:59:59,999 --> 99:59:59,999 Kaizen: a simple improvement that can 118 99:59:59,999 --> 99:59:59,999 have a very big effect. 119 99:59:59,999 --> 99:59:59,999 One possibility, course, 120 99:59:59,999 --> 99:59:59,999 would have been that I could have had a 121 99:59:59,999 --> 99:59:59,999 motorized tract to move me back and forth. 122 99:59:59,999 --> 99:59:59,999 Mr. Shingo would have called that 123 99:59:59,999 --> 99:59:59,999 a superficial improvement, 124 99:59:59,999 --> 99:59:59,999 because that would only be automating 125 99:59:59,999 --> 99:59:59,999 the waste of motion. 126 99:59:59,999 --> 99:59:59,999 He said, we need to find ways 127 99:59:59,999 --> 99:59:59,999 to truly reduce the kinds of waste 128 99:59:59,999 --> 99:59:59,999 that we see; not cover them up. 129 99:59:59,999 --> 99:59:59,999 Here's another example of motion. 130 99:59:59,999 --> 99:59:59,999 Motion is one of those wastes that's 131 99:59:59,999 --> 99:59:59,999 truly a people waste. 132 99:59:59,999 --> 99:59:59,999 Things that we must do in our jobs 133 99:59:59,999 --> 99:59:59,999 all require motion. 134 99:59:59,999 --> 99:59:59,999 But the question is, how much motion. 135 99:59:59,999 --> 99:59:59,999 Because we would like to have 136 99:59:59,999 --> 99:59:59,999 as little as possible. 137 99:59:59,999 --> 99:59:59,999 Uh, when I was searching for the butter, 138 99:59:59,999 --> 99:59:59,999 in the refrigerator, 139 99:59:59,999 --> 99:59:59,999 how much time should I spend looking? 140 99:59:59,999 --> 99:59:59,999 I had to dig through the refrigerator on 141 99:59:59,999 --> 99:59:59,999 several shelves until I found the butter. 142 99:59:59,999 --> 99:59:59,999 Now that would be one of those things 143 99:59:59,999 --> 99:59:59,999 that we would say is necessary 144 99:59:59,999 --> 99:59:59,999 to get the job done. 145 99:59:59,999 --> 99:59:59,999 And that's true, but it is waste. 146 99:59:59,999 --> 99:59:59,999 The customer does not pay when 147 99:59:59,999 --> 99:59:59,999 we are searching for things. 148 99:59:59,999 --> 99:59:59,999 And almost every job has this condition. 149 99:59:59,999 --> 99:59:59,999 Could be a pen, could be a calculator. 150 99:59:59,999 --> 99:59:59,999 Could be a crescent wrench. 151 99:59:59,999 --> 99:59:59,999 You may be breaking a sweat 152 99:59:59,999 --> 99:59:59,999 looking for this part. 153 99:59:59,999 --> 99:59:59,999 You may spend a very long time. 154 99:59:59,999 --> 99:59:59,999 But it's not work. 155 99:59:59,999 --> 99:59:59,999 And the customer doesn't pay for it. 156 99:59:59,999 --> 99:59:59,999 You know, motion is often very tiring. 157 99:59:59,999 --> 99:59:59,999 Stressful. Sometimes even dangerous. 158 99:59:59,999 --> 99:59:59,999 But we're used to it. 159 99:59:59,999 --> 99:59:59,999 It's just something that 160 99:59:59,999 --> 99:59:59,999 we're accustomed to. 161 99:59:59,999 --> 99:59:59,999 So we do it all the time. 162 99:59:59,999 --> 99:59:59,999 Mr. Shingo pointed out 163 99:59:59,999 --> 99:59:59,999 on a number of occasions that 164 99:59:59,999 --> 99:59:59,999 eliminating waste is not the problem. 165 99:59:59,999 --> 99:59:59,999 It's identifying it. 166 99:59:59,999 --> 99:59:59,999 It's actually being able to see it. 167 99:59:59,999 --> 99:59:59,999 And sometimes we are so familiar with 168 99:59:59,999 --> 99:59:59,999 things that aren't working, 169 99:59:59,999 --> 99:59:59,999 that we've forgotten about them. 170 99:59:59,999 --> 99:59:59,999 So we need to go back and observe directly 171 99:59:59,999 --> 99:59:59,999 Observe our own work. 172 99:59:59,999 --> 99:59:59,999 Just like when we watch toast. 173 99:59:59,999 --> 99:59:59,999 In order to understand where 174 99:59:59,999 --> 99:59:59,999 those wastes are. 175 99:59:59,999 --> 99:59:59,999 When you eliminate motion from your work, 176 99:59:59,999 --> 99:59:59,999 you're making the job easier. 177 99:59:59,999 --> 99:59:59,999 You're making the day better. 178 99:59:59,999 --> 99:59:59,999 Because you're making problems 179 99:59:59,999 --> 99:59:59,999 that you've had disappear. 180 99:59:59,999 --> 99:59:59,999 And when that happens, 181 99:59:59,999 --> 99:59:59,999 you can do more work. 182 99:59:59,999 --> 99:59:59,999 It won't be more tiring, 183 99:59:59,999 --> 99:59:59,999 but it will be more work. 184 99:59:59,999 --> 99:59:59,999 And so that's just one of the seven wastes 185 99:59:59,999 --> 99:59:59,999 which Mr. Shingo identified. 186 99:59:59,999 --> 99:59:59,999 Here's another one. 187 99:59:59,999 --> 99:59:59,999 Did you get a little nervous and antsy 188 99:59:59,999 --> 99:59:59,999 watching me wait for that toast? 189 99:59:59,999 --> 99:59:59,999 Well, he said, you know, waiting is 190 99:59:59,999 --> 99:59:59,999 a big part of the process. 191 99:59:59,999 --> 99:59:59,999 The customer doesn't pay for waiting. 192 99:59:59,999 --> 99:59:59,999 There are times when waiting is part 193 99:59:59,999 --> 99:59:59,999 of the process. Where it's important. 194 99:59:59,999 --> 99:59:59,999 For example, 195 99:59:59,999 --> 99:59:59,999 if it's important for something 196 99:59:59,999 --> 99:59:59,999 to age or glue to dry. 197 99:59:59,999 --> 99:59:59,999 Or if it's important for us to take 198 99:59:59,999 --> 99:59:59,999 a rest occasionally. 199 99:59:59,999 --> 99:59:59,999 This causes a delay in the process, 200 99:59:59,999 --> 99:59:59,999 but this is important, 201 99:59:59,999 --> 99:59:59,999 because it's necessary, 202 99:59:59,999 --> 99:59:59,999 it's part of the work. 203 99:59:59,999 --> 99:59:59,999 But if you're waiting for a toaster 204 99:59:59,999 --> 99:59:59,999 which is taking a very long time, 205 99:59:59,999 --> 99:59:59,999 what else could we be doing during 206 99:59:59,999 --> 99:59:59,999 that time? 207 99:59:59,999 --> 99:59:59,999 You may think that it's easy 208 99:59:59,999 --> 99:59:59,999 to find out what to do, 209 99:59:59,999 --> 99:59:59,999 but in fact, the person's time 210 99:59:59,999 --> 99:59:59,999 is very different from the machine's time. 211 99:59:59,999 --> 99:59:59,999 And often we pay people to stand 212 99:59:59,999 --> 99:59:59,999 and watch machines. 213 99:59:59,999 --> 99:59:59,999 Sometimes we buy a big machine 214 99:59:59,999 --> 99:59:59,999 and it's making defects for us. 215 99:59:59,999 --> 99:59:59,999 So we pay somebody to stand 216 99:59:59,999 --> 99:59:59,999 and be sure that it doesn't make a defect. 217 99:59:59,999 --> 99:59:59,999 This doesn't value the employee and it 218 99:59:59,999 --> 99:59:59,999 surely does not improve our productivity. 219 99:59:59,999 --> 99:59:59,999 So there's another waste: waiting. 220 99:59:59,999 --> 99:59:59,999 In fact, you know, there's a lot of 221 99:59:59,999 --> 99:59:59,999 waiting that goes on. Not only for people. 222 99:59:59,999 --> 99:59:59,999 In fact, most often in factories, 223 99:59:59,999 --> 99:59:59,999 and in offices, we don't wait. 224 99:59:59,999 --> 99:59:59,999 People don't wait. But material waits. 225 99:59:59,999 --> 99:59:59,999 Information waits. 226 99:59:59,999 --> 99:59:59,999 It waits in inboxes. It waits on pallets. 227 99:59:59,999 --> 99:59:59,999 It waits even on trucks. 228 99:59:59,999 --> 99:59:59,999 It looks like it's moving but actually 229 99:59:59,999 --> 99:59:59,999 it's just sitting there. It's waiting. 230 99:59:59,999 --> 99:59:59,999 And Mr. Shingo said, customers don't want 231 99:59:59,999 --> 99:59:59,999 to pay for that. 232 99:59:59,999 --> 99:59:59,999 That's increasing the time between paying 233 99:59:59,999 --> 99:59:59,999 and getting paid. That's another waste. 234 99:59:59,999 --> 99:59:59,999 Now occasionally we do have 235 99:59:59,999 --> 99:59:59,999 to move that material. 236 99:59:59,999 --> 99:59:59,999 We have to move it from 237 99:59:59,999 --> 99:59:59,999 point A to point B. 238 99:59:59,999 --> 99:59:59,999 And you can't make a part or you can't run 239 99:59:59,999 --> 99:59:59,999 a business without some transportation. 240 99:59:59,999 --> 99:59:59,999 You need to move things around. 241 99:59:59,999 --> 99:59:59,999 But how far? Well, that has to do with 242 99:59:59,999 --> 99:59:59,999 the distance between operations. 243 99:59:59,999 --> 99:59:59,999 And in fact, there was some transportation 244 99:59:59,999 --> 99:59:59,999 and another waste of storage. 245 99:59:59,999 --> 99:59:59,999 Picking things up and putting them down. 246 99:59:59,999 --> 99:59:59,999 How many times did I pick the toast up 247 99:59:59,999 --> 99:59:59,999 and put it down in process of toasting? 248 99:59:59,999 --> 99:59:59,999 The function here, of course, 249 99:59:59,999 --> 99:59:59,999 is making toast, and that involves 250 99:59:59,999 --> 99:59:59,999 picking it up once anyway, 251 99:59:59,999 --> 99:59:59,999 but how many times did I pick it up? 252 99:59:59,999 --> 99:59:59,999 And how many storage points were there? 253 99:59:59,999 --> 99:59:59,999 Often when we think of storage, 254 99:59:59,999 --> 99:59:59,999 we think only of the warehouse. 255 99:59:59,999 --> 99:59:59,999 And some storage in a warehouse 256 99:59:59,999 --> 99:59:59,999 may be legitimate. 257 99:59:59,999 --> 99:59:59,999 But why everywhere else? 258 99:59:59,999 --> 99:59:59,999 Are our factories and offices warehouses, 259 99:59:59,999 --> 99:59:59,999 or are they workplaces? 260 99:59:59,999 --> 99:59:59,999 So we need to be able to see those wastes 261 99:59:59,999 --> 99:59:59,999 and identify them as waste, because 262 99:59:59,999 --> 99:59:59,999 every time we are storing information 263 99:59:59,999 --> 99:59:59,999 or material, we're not really 264 99:59:59,999 --> 99:59:59,999 adding value to it. 265 99:59:59,999 --> 99:59:59,999 The customer doesn't want to pay for that. 266 99:59:59,999 --> 99:59:59,999 We can't put at the bottom of the invoice, 267 99:59:59,999 --> 99:59:59,999 this product was stored many times. 268 99:59:59,999 --> 99:59:59,999 So we're charging you extra for it. 269 99:59:59,999 --> 99:59:59,999 So we call that value added. 270 99:59:59,999 --> 99:59:59,999 From the customer standpoint. 271 99:59:59,999 --> 99:59:59,999 What is the value that the customer 272 99:59:59,999 --> 99:59:59,999 expects in the process? 273 99:59:59,999 --> 99:59:59,999 Here's another waste. Defects. 274 99:59:59,999 --> 99:59:59,999 Were there any defects here? 275 99:59:59,999 --> 99:59:59,999 Well, in this case there was 276 99:59:59,999 --> 99:59:59,999 a very big defect. There was scrap. 277 99:59:59,999 --> 99:59:59,999 There were four pieces of scrap and why? 278 99:59:59,999 --> 99:59:59,999 Because I wasn't making what 279 99:59:59,999 --> 99:59:59,999 the customer needed. 280 99:59:59,999 --> 99:59:59,999 Now obviously in this case it would be 281 99:59:59,999 --> 99:59:59,999 easy for me to ask the customer, 282 99:59:59,999 --> 99:59:59,999 but very often, a factory or an office is 283 99:59:59,999 --> 99:59:59,999 set up working on things which are 284 99:59:59,999 --> 99:59:59,999 not needed. Not needed today. 285 99:59:59,999 --> 99:59:59,999 Maybe needed next week. 286 99:59:59,999 --> 99:59:59,999 Maybe needed next month. 287 99:59:59,999 --> 99:59:59,999 But they're not needed now. 288 99:59:59,999 --> 99:59:59,999 And if we're not careful, we'll end up 289 99:59:59,999 --> 99:59:59,999 producing something which 290 99:59:59,999 --> 99:59:59,999 we'll have to scrap. 291 99:59:59,999 --> 99:59:59,999 Now there's a couple of other wastes 292 99:59:59,999 --> 99:59:59,999 that I haven't covered yet. 293 99:59:59,999 --> 99:59:59,999 Let me just mention one now. Processing. 294 99:59:59,999 --> 99:59:59,999 Sometimes in the processing itself, 295 99:59:59,999 --> 99:59:59,999 there are things which don't make sense. 296 99:59:59,999 --> 99:59:59,999 We do them because that's the way 297 99:59:59,999 --> 99:59:59,999 the process is designed, 298 99:59:59,999 --> 99:59:59,999 but maybe we need to look at the process 299 99:59:59,999 --> 99:59:59,999 more closely to understand how 300 99:59:59,999 --> 99:59:59,999 it could be improved. 301 99:59:59,999 --> 99:59:59,999 The way I had to cut butter in 302 99:59:59,999 --> 99:59:59,999 that first condition, 303 99:59:59,999 --> 99:59:59,999 is an inadequate process. 304 99:59:59,999 --> 99:59:59,999 Sure, the function of buttering toast 305 99:59:59,999 --> 99:59:59,999 requires that we cut the butter. 306 99:59:59,999 --> 99:59:59,999 But nobody says it should be 307 99:59:59,999 --> 99:59:59,999 as hard as a rock. And of course, 308 99:59:59,999 --> 99:59:59,999 who can identify that waste? 309 99:59:59,999 --> 99:59:59,999 Now, of course, 310 99:59:59,999 --> 99:59:59,999 there needs to be a condition 311 99:59:59,999 --> 99:59:59,999 in your business when a waste like that 312 99:59:59,999 --> 99:59:59,999 is identified that we can 313 99:59:59,999 --> 99:59:59,999 make an improvement. 314 99:59:59,999 --> 99:59:59,999 In the real world sometimes a person might 315 99:59:59,999 --> 99:59:59,999 identify a waste like that, 316 99:59:59,999 --> 99:59:59,999 speak to their boss, 317 99:59:59,999 --> 99:59:59,999 and the boss might say, you know, 318 99:59:59,999 --> 99:59:59,999 we have brought people who 319 99:59:59,999 --> 99:59:59,999 solve those problems. 320 99:59:59,999 --> 99:59:59,999 Why don't you just quit complaining 321 99:59:59,999 --> 99:59:59,999 and get back to your job? 322 99:59:59,999 --> 99:59:59,999 So simple things often are not fixed 323 99:59:59,999 --> 99:59:59,999 because we don't observe directly. 324 99:59:59,999 --> 99:59:59,999 The last waste -- the last waste and 325 99:59:59,999 --> 99:59:59,999 the worst waste of all, 326 99:59:59,999 --> 99:59:59,999 we call over-production. 327 99:59:59,999 --> 99:59:59,999 Over-production is producing information 328 99:59:59,999 --> 99:59:59,999 or material either too soon or in 329 99:59:59,999 --> 99:59:59,999 too great a quantity. 330 99:59:59,999 --> 99:59:59,999 Now in our traditional thinking, 331 99:59:59,999 --> 99:59:59,999 over-production isn't even 332 99:59:59,999 --> 99:59:59,999 a meaningful word. 333 99:59:59,999 --> 99:59:59,999 How could it be a problem to produce more. 334 99:59:59,999 --> 99:59:59,999 Because we'll sell it. 335 99:59:59,999 --> 99:59:59,999 We'll sell it eventually. 336 99:59:59,999 --> 99:59:59,999 Or if we're able to do it 337 99:59:59,999 --> 99:59:59,999 sooner than later, why not? 338 99:59:59,999 --> 99:59:59,999 Uh, but if you think about over-production 339 99:59:59,999 --> 99:59:59,999 if we make something and we can't use it 340 99:59:59,999 --> 99:59:59,999 right now, 341 99:59:59,999 --> 99:59:59,999 we're gonna have to move it somewhere. 342 99:59:59,999 --> 99:59:59,999 And that's transportation. 343 99:59:59,999 --> 99:59:59,999 And then we're gonna have to store it. 344 99:59:59,999 --> 99:59:59,999 That's storage. 345 99:59:59,999 --> 99:59:59,999 And in fact if we're making something 346 99:59:59,999 --> 99:59:59,999 right now, that isn't needed, well, 347 99:59:59,999 --> 99:59:59,999 we're causing something behind to wait, 348 99:59:59,999 --> 99:59:59,999 aren't we? 349 99:59:59,999 --> 99:59:59,999 We don't think of it as waiting 350 99:59:59,999 --> 99:59:59,999 because we're very busy. 351 99:59:59,999 --> 99:59:59,999 But the customer is waiting. 352 99:59:59,999 --> 99:59:59,999 The next job is waiting. 353 99:59:59,999 --> 99:59:59,999 Why do you suppose I made four slices 354 99:59:59,999 --> 99:59:59,999 of toast? Why would I do that? 355 99:59:59,999 --> 99:59:59,999 Well, it's a four-slice toaster, right? 356 99:59:59,999 --> 99:59:59,999 Now I don't even know what 357 99:59:59,999 --> 99:59:59,999 the customer wants, but unfortunately, 358 99:59:59,999 --> 99:59:59,999 this is often the case. 359 99:59:59,999 --> 99:59:59,999 And if we don't know what 360 99:59:59,999 --> 99:59:59,999 the customer wants, 361 99:59:59,999 --> 99:59:59,999 and we may want to maximize the resource. 362 99:59:59,999 --> 99:59:59,999 We may say, don't load that oven until 363 99:59:59,999 --> 99:59:59,999 there are four slices. 364 99:59:59,999 --> 99:59:59,999 Let's keep the customer waiting. 365 99:59:59,999 --> 99:59:59,999 More efficient, isn't it? 366 99:59:59,999 --> 99:59:59,999 Well, not if the customer is 367 99:59:59,999 --> 99:59:59,999 not going to buy it. 368 99:59:59,999 --> 99:59:59,999 We're gonna end up scrapping it. 369 99:59:59,999 --> 99:59:59,999 So you see, this whole idea of 370 99:59:59,999 --> 99:59:59,999 the seven wastes -- 371 99:59:59,999 --> 99:59:59,999 -- if you look at it from 372 99:59:59,999 --> 99:59:59,999 an initiative standpoint, it makes 373 99:59:59,999 --> 99:59:59,999 a lot of sense to look for these wastes. 374 99:59:59,999 --> 99:59:59,999 But in our workplaces, 375 99:59:59,999 --> 99:59:59,999 regardless of the jobs that we do, 376 99:59:59,999 --> 99:59:59,999 we've very practiced at 377 99:59:59,999 --> 99:59:59,999 not looking for these wastes. 378 99:59:59,999 --> 99:59:59,999 The day is very long often. 379 99:59:59,999 --> 99:59:59,999 Very rarely do I hear somebody say, 380 99:59:59,999 --> 99:59:59,999 I had a great day. 381 99:59:59,999 --> 99:59:59,999 Well, the reason for that 382 99:59:59,999 --> 99:59:59,999 is all the headaches. 383 99:59:59,999 --> 99:59:59,999 All the things that you 384 99:59:59,999 --> 99:59:59,999 just observed in this process -- 385 99:59:59,999 --> 99:59:59,999 you can observe these same kinds 386 99:59:59,999 --> 99:59:59,999 of wastes in any process. 387 99:59:59,999 --> 99:59:59,999 Shigeo Shingo, who was the creator 388 99:59:59,999 --> 99:59:59,999 of these seven wastes, 389 99:59:59,999 --> 99:59:59,999 or at least the first person 390 99:59:59,999 --> 99:59:59,999 to report them, said -- 391 99:59:59,999 --> 99:59:59,999 he said it doesn't matter whether you're 392 99:59:59,999 --> 99:59:59,999 making automobiles or baking bread. 393 99:59:59,999 --> 99:59:59,999 Waste is still the same. 394 99:59:59,999 --> 99:59:59,999 Continuous improvement is not about 395 99:59:59,999 --> 99:59:59,999 the things you do well. 396 99:59:59,999 --> 99:59:59,999 That's work. 397 99:59:59,999 --> 99:59:59,999 That's what your customer is paying for. 398 99:59:59,999 --> 99:59:59,999 Continuous improvement is about 399 99:59:59,999 --> 99:59:59,999 eliminating all of the things that get in 400 99:59:59,999 --> 99:59:59,999 the way of your work every single day. 401 99:59:59,999 --> 99:59:59,999 Regardless of the job you do. 402 99:59:59,999 --> 99:59:59,999 The headaches. The problems. 403 99:59:59,999 --> 99:59:59,999 The things that slow you down. 404 99:59:59,999 --> 99:59:59,999 The things that cause you to say at 405 99:59:59,999 --> 99:59:59,999 the end of the day, I'm very tired, 406 99:59:59,999 --> 99:59:59,999 this has been a hard day. 407 99:59:59,999 --> 99:59:59,999 That's what continuous 408 99:59:59,999 --> 99:59:59,999 improvement is about. 409 99:59:59,999 --> 99:59:59,999 So why don't we stop right here 410 99:59:59,999 --> 99:59:59,999 and try to gather our thoughts 411 99:59:59,999 --> 99:59:59,999 as to what we saw in that process, 412 99:59:59,999 --> 99:59:59,999 that can be improved. 413 99:59:59,999 --> 99:59:59,999 Simple things, is what we're looking for. 414 99:59:59,999 --> 99:59:59,999 Kaizen. We're looking for the things that 415 99:59:59,999 --> 99:59:59,999 can be improved through your experience 416 99:59:59,999 --> 99:59:59,999 and common sense. 417 99:59:59,999 --> 99:59:59,999 No big machines. No innovation. 418 99:59:59,999 --> 99:59:59,999 These are improvements as well but this 419 99:59:59,999 --> 99:59:59,999 is not what we're looking for with Kaizen. 420 99:59:59,999 --> 99:59:59,999 We're looking for many small improvements. 421 99:59:59,999 --> 99:59:59,999 So what are your ideas? 422 99:59:59,999 --> 99:59:59,999 Pause the tape or DVD here to see if 423 99:59:59,999 --> 99:59:59,999 you can identify and suggest ways 424 99:59:59,999 --> 99:59:59,999 to remove the seven types of waste 425 99:59:59,999 --> 99:59:59,999 Bruce defined including motion, 426 99:59:59,999 --> 99:59:59,999 waiting, transportation, storage, defects, 427 99:59:59,999 --> 99:59:59,999 processing, and over-production. 428 99:59:59,999 --> 99:59:59,999 Okay, I'll bet by now, 429 99:59:59,999 --> 99:59:59,999 you've had a lot of ideas as to 430 99:59:59,999 --> 99:59:59,999 what can be improved in what 431 99:59:59,999 --> 99:59:59,999 we call the current condition. 432 99:59:59,999 --> 99:59:59,999 And of course, any process can be improved 433 99:59:59,999 --> 99:59:59,999 if we watch and look for the improvements 434 99:59:59,999 --> 99:59:59,999 that can be made. 435 99:59:59,999 --> 99:59:59,999 Now let's take a look and see 436 99:59:59,999 --> 99:59:59,999 what happened when my wife and I got 437 99:59:59,999 --> 99:59:59,999 together to make a better process 438 99:59:59,999 --> 99:59:59,999 for making toast. 439 99:59:59,999 --> 99:59:59,999 What type of toast would you like? 440 99:59:59,999 --> 99:59:59,999 Wheat. 441 99:59:59,999 --> 99:59:59,999 Okay. How many slices? 442 99:59:59,999 --> 99:59:59,999 Just one please. 443 99:59:59,999 --> 99:59:59,999 Very good. 444 99:59:59,999 --> 99:59:59,999 [Rustling noises.] 445 99:59:59,999 --> 99:59:59,999 Hmmm. 446 99:59:59,999 --> 99:59:59,999 [Whistling] 447 99:59:59,999 --> 99:59:59,999 [Clears throat.] 448 99:59:59,999 --> 99:59:59,999 That oughta do it. 449 99:59:59,999 --> 99:59:59,999 [Running water sounds] 450 99:59:59,999 --> 99:59:59,999 All set! 451 99:59:59,999 --> 99:59:59,999 Thanks dear. 452 99:59:59,999 --> 99:59:59,999 So now you see what we mean by Kaizen. 453 99:59:59,999 --> 99:59:59,999 Simple improvements with big benefits. 454 99:59:59,999 --> 99:59:59,999 And simple improvements which come from 455 99:59:59,999 --> 99:59:59,999 direct observation and from the thinking 456 99:59:59,999 --> 99:59:59,999 and knowledge of people that do the work. 457 99:59:59,999 --> 99:59:59,999 For example, 458 99:59:59,999 --> 99:59:59,999 moving the toaster closer to the bread. 459 99:59:59,999 --> 99:59:59,999 How many times have you 460 99:59:59,999 --> 99:59:59,999 experienced this condition? 461 99:59:59,999 --> 99:59:59,999 The work you need to do is done on 462 99:59:59,999 --> 99:59:59,999 a machine which is far away from you. 463 99:59:59,999 --> 99:59:59,999 Why is the machine there? 464 99:59:59,999 --> 99:59:59,999 Maybe that was the spot that -- 465 99:59:59,999 --> 99:59:59,999 there was space on the day that 466 99:59:59,999 --> 99:59:59,999 the machine arrived. 467 99:59:59,999 --> 99:59:59,999 Or maybe that's where 468 99:59:59,999 --> 99:59:59,999 the telephone line is. 469 99:59:59,999 --> 99:59:59,999 Or where the power is. 470 99:59:59,999 --> 99:59:59,999 But does it make it easy for you to do 471 99:59:59,999 --> 99:59:59,999 the work or is it causing you to walk long 472 99:59:59,999 --> 99:59:59,999 distances back and forth between 473 99:59:59,999 --> 99:59:59,999 the two processes? 474 99:59:59,999 --> 99:59:59,999 So we focused on a simple improvement. 475 99:59:59,999 --> 99:59:59,999 We moved the machine. 476 99:59:59,999 --> 99:59:59,999 Another improvement that we made 477 99:59:59,999 --> 99:59:59,999 was to the butter. 478 99:59:59,999 --> 99:59:59,999 I know that it's necessary to butter toast 479 99:59:59,999 --> 99:59:59,999 but nobody said that 480 99:59:59,999 --> 99:59:59,999 the butter needs to be hard as a rock. 481 99:59:59,999 --> 99:59:59,999 So we softened the butter and we put the 482 99:59:59,999 --> 99:59:59,999 butter right at the point of use as well. 483 99:59:59,999 --> 99:59:59,999 No more searching; since we don't 484 99:59:59,999 --> 99:59:59,999 need it in the refrigerator, 485 99:59:59,999 --> 99:59:59,999 we can put it right at the point of use. 486 99:59:59,999 --> 99:59:59,999 While buttering the toast is real work 487 99:59:59,999 --> 99:59:59,999 because the customer has asked for it, 488 99:59:59,999 --> 99:59:59,999 we can eliminate the Muda, 489 99:59:59,999 --> 99:59:59,999 or waste of over-processing. 490 99:59:59,999 --> 99:59:59,999 That is, putting too much 491 99:59:59,999 --> 99:59:59,999 butter on the bread. 492 99:59:59,999 --> 99:59:59,999 And at the same time, 493 99:59:59,999 --> 99:59:59,999 eliminate the strain or Muri, 494 99:59:59,999 --> 99:59:59,999 of buttering by softening the butter. 495 99:59:59,999 --> 99:59:59,999 Finally we can reduce the Mura, 496 99:59:59,999 --> 99:59:59,999 or inconsistency of the buttering process 497 99:59:59,999 --> 99:59:59,999 by making it easier to apply a standard 498 99:59:59,999 --> 99:59:59,999 and even amount of butter to the toast. 499 99:59:59,999 --> 99:59:59,999 We chose to keep the flatware where it was 500 99:59:59,999 --> 99:59:59,999 Because that was a good location for it 501 99:59:59,999 --> 99:59:59,999 for other things. 502 99:59:59,999 --> 99:59:59,999 But notice that I picked the piece of 503 99:59:59,999 --> 99:59:59,999 flatware up on the way to the process 504 99:59:59,999 --> 99:59:59,999 while asking my wife what she needed. 505 99:59:59,999 --> 99:59:59,999 I was very careful in the order of 506 99:59:59,999 --> 99:59:59,999 the process because sometimes changing 507 99:59:59,999 --> 99:59:59,999 the order of the process can make 508 99:59:59,999 --> 99:59:59,999 a big difference. 509 99:59:59,999 --> 99:59:59,999 In the first video, 510 99:59:59,999 --> 99:59:59,999 I waited a long time to start the toaster. 511 99:59:59,999 --> 99:59:59,999 In the second video, I started the toaster 512 99:59:59,999 --> 99:59:59,999 as soon as I knew what the customer wanted 513 99:59:59,999 --> 99:59:59,999 And very importantly, 514 99:59:59,999 --> 99:59:59,999 I knew what the customer wanted. 515 99:59:59,999 --> 99:59:59,999 I knew what she wanted and 516 99:59:59,999 --> 99:59:59,999 I knew how many she wanted. 517 99:59:59,999 --> 99:59:59,999 And therefore I was able to make 518 99:59:59,999 --> 99:59:59,999 exactly what was needed. 519 99:59:59,999 --> 99:59:59,999 No over-production. 520 99:59:59,999 --> 99:59:59,999 In fact, I preheated the toaster 521 99:59:59,999 --> 99:59:59,999 so there would be less waiting 522 99:59:59,999 --> 99:59:59,999 for the customer. 523 99:59:59,999 --> 99:59:59,999 Now the process was long, 524 99:59:59,999 --> 99:59:59,999 it was still long, but I found a way 525 99:59:59,999 --> 99:59:59,999 to make good, productive use of my time 526 99:59:59,999 --> 99:59:59,999 that was balanced against 527 99:59:59,999 --> 99:59:59,999 the machine time. 528 99:59:59,999 --> 99:59:59,999 Too often we think that a person's time 529 99:59:59,999 --> 99:59:59,999 is the same as the machine's. 530 99:59:59,999 --> 99:59:59,999 But it's not. 531 99:59:59,999 --> 99:59:59,999 A person can do other things. 532 99:59:59,999 --> 99:59:59,999 And once I realized this, 533 99:59:59,999 --> 99:59:59,999 I was able to load the toast, 534 99:59:59,999 --> 99:59:59,999 get that toaster process going, 535 99:59:59,999 --> 99:59:59,999 and then load the dishwasher and clean up. 536 99:59:59,999 --> 99:59:59,999 And I had plenty of time. 537 99:59:59,999 --> 99:59:59,999 In fact, I was still waiting. 538 99:59:59,999 --> 99:59:59,999 I had extra time. 539 99:59:59,999 --> 99:59:59,999 So these are simple improvements 540 99:59:59,999 --> 99:59:59,999 that were made. 541 99:59:59,999 --> 99:59:59,999 You probably thought of all these as well. 542 99:59:59,999 --> 99:59:59,999 Here's an interesting aside. 543 99:59:59,999 --> 99:59:59,999 At this point, it's important to realize 544 99:59:59,999 --> 99:59:59,999 that Kaizen is small, stepwise improvement 545 99:59:59,999 --> 99:59:59,999 We're not aiming for perfection 546 99:59:59,999 --> 99:59:59,999 in the first try. 547 99:59:59,999 --> 99:59:59,999 But for something better than we have. 548 99:59:59,999 --> 99:59:59,999 And when we get there, 549 99:59:59,999 --> 99:59:59,999 it's likely that we'll notice 550 99:59:59,999 --> 99:59:59,999 something more we can do now to 551 99:59:59,999 --> 99:59:59,999 make things even better. 552 99:59:59,999 --> 99:59:59,999 In that sense, every target condition 553 99:59:59,999 --> 99:59:59,999 immediately becomes our 554 99:59:59,999 --> 99:59:59,999 new current condition. 555 99:59:59,999 --> 99:59:59,999 As you viewed the improved condition, 556 99:59:59,999 --> 99:59:59,999 your direct observation may have uncovered 557 99:59:59,999 --> 99:59:59,999 further opportunities to reduce waste. 558 99:59:59,999 --> 99:59:59,999 What did you see? 559 99:59:59,999 --> 99:59:59,999 Did you notice a potential safety hazard 560 99:59:59,999 --> 99:59:59,999 with the location of the toaster? 561 99:59:59,999 --> 99:59:59,999 Or were you waiting for 562 99:59:59,999 --> 99:59:59,999 Bruce to wash his hands? 563 99:59:59,999 --> 99:59:59,999 Why were the dishes in the sink 564 99:59:59,999 --> 99:59:59,999 in the first place, you might ask? 565 99:59:59,999 --> 99:59:59,999 And did you observe that an operation 566 99:59:59,999 --> 99:59:59,999 was missing in the target condition? 567 99:59:59,999 --> 99:59:59,999 With Kaizen, we are always watching for 568 99:59:59,999 --> 99:59:59,999 additional improvement 569 99:59:59,999 --> 99:59:59,999 and the more eyes watching, 570 99:59:59,999 --> 99:59:59,999 the more we'll see. 571 99:59:59,999 --> 99:59:59,999 Now we've switched on that part of us 572 99:59:59,999 --> 99:59:59,999 that is going to notice waste 573 99:59:59,999 --> 99:59:59,999 and come up with small changes 574 99:59:59,999 --> 99:59:59,999 for the better. Everybody every day. 575 99:59:59,999 --> 99:59:59,999 And the most important part of this was 576 99:59:59,999 --> 99:59:59,999 that the customer was happy. 577 99:59:59,999 --> 99:59:59,999 I produced what the customer wanted. 578 99:59:59,999 --> 99:59:59,999 I made the part move faster. 579 99:59:59,999 --> 99:59:59,999 I made the job easier. 580 99:59:59,999 --> 99:59:59,999 I reduced the time between paying 581 99:59:59,999 --> 99:59:59,999 and getting paid. I reduced scrap. 582 99:59:59,999 --> 99:59:59,999 I reduced the number of steps 583 99:59:59,999 --> 99:59:59,999 that I had to take. I reduced searching. 584 99:59:59,999 --> 99:59:59,999 I made it a good day for me. 585 99:59:59,999 --> 99:59:59,999 And for the customer. 586 99:59:59,999 --> 99:59:59,999 This is what continuous 587 99:59:59,999 --> 99:59:59,999 improvement is all about. 588 99:59:59,999 --> 99:59:59,999 So this is my challenge to you. 589 99:59:59,999 --> 99:59:59,999 Yeah, toast is simple to make. 590 99:59:59,999 --> 99:59:59,999 Go take a look at another process. 591 99:59:59,999 --> 99:59:59,999 Go take a look at your job. 592 99:59:59,999 --> 99:59:59,999 But this time, watch 593 99:59:59,999 --> 99:59:59,999 with an eye for improvement. 594 99:59:59,999 --> 99:59:59,999 And see how many of these wastes 595 99:59:59,999 --> 99:59:59,999 you can identify and remove. 596 99:59:59,999 --> 99:59:59,999 [Music.]