Facilitator's

Manual

Facilitator's
Manual
Table of Content

CHAPTER 1: INTRODUCTION TO THE 20 KEYS PROGRAMME 3

1.1 Introduction 3
1.2 Aims and objectives of the 20 Keys programme 5
1.3 Benefits of the 20 Keys programme 6
1.4 Reasons for implementing the 20 Keys 9
1.5 An overview of the 20 Keys programme 10
1.6 The 20 Keys five-level scoring system 35
1.7 20 Keys and lean thinking 39
1.8 The interrelationship between the 20 Keys 41
1.9 The fundamentals of the 20 keys 62
1.10 Integrating other initiatives into the 20 Keys framework 67
1.11 20 Keys and the strategy of the organisation 69

CHAPTER 2: IMPLEMENTING THE 20 KEYS PROGRAMME 70

2.1 Implementation stages of the 20 Keys programme 71
2.2 Summary of implementation stages 77
2.3 Implementation case study 78
2.4 Top management commitment and understanding 80
2.5 Training of Keys 84
2.6 Recognition of achievement and celebration of success 86
2.7 Critical success factors and biggest mistakes 88
2.8 Implementing the 20 Keys in support departments 94

CHAPTER 3: 20 KEYS IMPLEMENTATION ROLES AND RESPONSIBILITIES 96

3.1 Introduction 96
3.2 Leading the 20 Keys 96
3.3 The promotion organisation 100

CHAPTER 4: THE 20 KEYS MANAGEMENT SYSTEM 108

4.1 Introduction 108
4.2 Aligning the 20 Keys to the business strategy 111
4.3 20 Keys benchmarking 115
4.4 Basic policy and goal achievement image 123
4.5 The 20 Keys overall implementation plan 128
4.6 Multi-level meetings 132
4.7 Key action plans 146
4.8 Managing the 20 Keys to produce results 153
4.9 Impact projects 163

CHAPTER 5: MAPS, CHECKSHEETS AND BENCHMARKING GUIDELINES 172

CHAPTER 6: MODEL WORKPLACE AND INTERNATIONAL AWARDS 228

6.1 Model workplaces 229
6.2 International awards 236

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ICONS
Icons used in this module:

EXAMPLE

TOOLS AND TECHNIQUES

HOW-TO STEPS

IMPORTANT INFORMATION

LEARNING APPLICATION

ICONS
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chapter 1
FACILITATOR´S MANUAL

Introduction to the
20 Keys Programme

1.1 Introduction
Companies all around the globe find themselves in a different world from a few years ago: a market
with different demands; a workforce with different needs; a game with different and new players. An
oil crisis looms, a clash of civilizations seems imminent, travel and communication is easier than ever
before, African economies are growing, China is booming, global warming threatens to change things
we take for granted and globalisation continues to complicate and simplify, all at the same time…

Subsequently, organisations wanting to stay relevant and profitable need to become masters of change.
Changing before you need to change becomes a skill that distinguishes victors from victims. And the
companies that have adopted change as a way of doing business, find themselves not only able to adapt
to an unpredictable world, but they also find opportunities where they never even thought of searching!

IMPORTANT INFORMATION

"The only thing harder than changing, is paying the price for failing to change."
Norman Augustine, former Chairman of the Lockheed Martin Corporation.

"You cannot step twice into the same river, for other waters are continually flowing in."
ca. 500 BCE - Heraclites

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IMPORTANT INFORMATION

"It takes a lot of courage to release the familiar and seemingly secure, to embrace the new. But there is
no real security in what is no longer meaningful. There is more security in the adventurous and exciting,
for in movement there is life, and in change there is power." - Alan Cohen.

And on the lighter side, a word from W. Edwards Deming:

"It is not necessary to change. Survival is not mandatory."

Continuously improving is continuously changing - proactively. Changing proactively and

continuously puts your company in the best possible position to counter and absorb changes in the
business environment. It is, by far, the best guarantee for a company's survival and growth in the long
term. For this very reason, the 20 Keys programme was developed; to equip companies in changing
times and to lead them to world class ahead of their competitors.

The 20 Keys is the vehicle with which your company can:

• create a culture of continuous improvement in the business
• implement world class practices in the organisation in a sustainable, holistic and participative way
• benchmark yourself against world class practices
• ultimately survive and grow in a changing world.

In short, the 20 Keys is an implementation approach used for implementing a comprehensive range of
world class practices. Many books have been written to define what best practices are, but it certainly
has proven to be easier to define best practice than it has been to implement it in a holistic and
sustainable way. The 20 Keys provides an approach which is based on the experience of other
companies who have successfully navigated the journey of implementing best practice. It is also based
on the lean philosophy.

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IMPORTANT INFORMATION

What people say about Prof. Kobayashi's book, “20 Keys to Workplace Improvement” - reviews
posted on www.amazon.com

“20 Keys is a powerful `white-glove test' for a lean-type environment … If you understand lean practices,
20 Keys may simply help you to identify where to start and where to proceed to; you select the right tools
from all those already at your disposal to create a coordinated strategy.” Larry R. Graham, USA

“This is probably the finest book of the world class journey ever written, not in theory, but the things we
have to do to keep on the journey. Prof Kobayashi brings to light the 20 different skills in a broad
perspective that any organization can use effectively to make the journey possible. To truly understand
the subtle secrets you will eventually read this book 20 times.” Greg, RSA

“This is a must-read for all production personnel interested in understanding how to obtain more
throughput from existing resources. The twenty steps are proven techniques and you do not need an
advanced degree or significant training to fully implement these methods for reducing costs of inventory,
maintenance, loss time searching for tools or components.” Unknown.

1.2 Aims and objectives of the 20 Keys programme

• Achieve the strategic goals of the business
• Improve the speed of learning and innovation of the business and improve the productivity and
flexibility of the organisation to adapt more readily to changing market requirements
• Eliminate all forms of waste (non value-adding activities) to improve customer satisfaction and
market share by making products and services better, faster and cheaper
• Energise and motivate employees to work towards the achievement of the company’s goals
• Improve competitiveness, profitability and long term sustainable business success.

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1.3 Benefits of the 20 Keys programme
• Measurable improvements in the strength of first-line management
• Immediate application of learning in the workplace
• Strengthening of bottom-up management
• Improved goal alignment
• Coaching is focused on individual development needs
• Establishes a culture of learning
• Delivers results in terms of quality, cost, delivery, safety and morale

DID YOU KNOW?

Several 20 Keys clients from all over the world have shown some remarkable results through
dedicated implementation of the 20 Keys programme. They have shown results such as:
• Doubling of productivity
• Reduction of defects by up to 80%
• Reduction of work-in-process by up to 50%.

The most remarkable benefit of the programme is the level of involvement which is created in
the organisation, and Prof. Kobayashi says:

“When all employees are aware

of the company's position
in relation to other enterprises,
a true feeling of competition is developed
and they will do whatever they can to win”.

“Management and workers will cooperate in their efforts to raise quality and productivity.”

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IMPORTANT INFORMATION

Productivity definition in the 20 Keys

Productivity in the 20 Keys is defined as output per man-hour. Company executives are
generally interested in the monetary value associated with output per operator. However,
currency and inflation fluctuations result in it being easier for first-line managers and operators
to understand the productivity goal if quantities (actual number of products produced) are used
to measure productivity. Motivation is enhanced when the goal is given in an easily
understandable format. Remember that the 20 Keys programme caters for all employees - it is
not only a programme for “clever” people.

Case study examples: Doubling of productivity

Profile of companies visited 20 Keys results
Period Productivity Quality Work-in-
Company Type of Employees Opening Present
Turnover In 20 Keys improvement defect progress
business Score Score
rate

Seiko Over 95% Reduced

Watches 90 ¥23 bn 8 years 38 80 Trebled
Morioka reduced by over 80%

Over 90% Reduced

Konica Films 517 ¥15 bn 3 years 34 60 2.5 times
reduced by over 35%

Sanyo Household Improved From 9.5 Reduced

appliances 935 ¥50 bill 18 months 32 62 by 84% by 76%
Electric to 2.1%

Processing Improved Over 80%

Kosmec 100 ¥2.5 bn 4 years 34 64
equipment by 53% reduced

Cooling
Reduced
Sanyo products 700 ¥51 bn 3 years 31 68 86% by 76%
for shops

Fish Reduced Reduced by

Nichiro 400 ¥170 bn 6 years 33 72 Doubled
products by 82% 78%

From 100 to 18205 60

Seiko Wrist 408 PCS / 3600 ppm, Reduced by
860 S$192 mil 7 years 38 78
Singapore watches MAN / Year, reduced by over 80%
300% over 80%

Seiko Instruments Inc.’s company goal is to become the world’s strongest watch manufacturing
and sales group. The mission of the company is to please customers throughout the world - by
“Respecting People and Respecting Performance” - as the company philosophy.

Morioka Factory was selected as a model plant when the Seiko Instruments Group decided to
implement the 20 Keys in November 1990. 20 Keys study sessions commenced under the
leadership of Prof. Kobayashi in February 1991 and the official kick-off occurred in October
1991.

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Why was the 20 Keys programme created?

1) To make products and services Better

Packaging

0.35
0.31
0.30

0.25

0.20
0.16
0.15
0.11
0.10

0.05 0.018 0.024 0.015

0.00
1995 1996 1997 1998 1999 2000

Reduced defects by 90%

2) To deliver products and services Faster

eldim 2 Eldim:
Jet Engine Parts Manufacturer,
The Netherlands

Reduced leadtime from six weeks to <1 week

(+80% improvement)

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3) To deliver products and services Cheaper

Parmalat Cheese Factory,

Bonnievale

Doubled productivity and reduced cheese

waste by 80%

1.4 Reasons for implementing the 20 Keys

Over 300 companies have already introduced the 20 Keys and their reasons for adopting this
approach varies from company to company and depends on their particular situation.

Some companies face a crisis, whilst others introduce it for future growth and development. Below is
a list of common reasons found in companies wishing to improve their constitution through the 20
Keys:

• To “survive”
• To increase productivity, quality and delivery performance
• To reduce costs
• To become more flexible and adaptable to changing market conditions
• To revolutionise the delivery system
• To make more effective improvements
• To meet customer demands
• To provide focus for improvement efforts
• To build upon and make initiatives like TPM and TQM a success
• To energise the organisation
• To utilise a holistic systems approach in order to achieve improvement goals..

In sum, companies introduce the 20 Keys programme to achieve the strategic goals of the business as
well as long term sustainable profitability and competitiveness and to create an environment in which
the company is able to continuously improve itself.

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LEARNING APPLICATION 1

Why is your company implementing 20 Keys?

1.5 An overview of the 20 Keys programme

1.5.1 The 20 Keys relations diagram

1. Cleaning and Organising to Make Work Easy

2. Rationalising the System / Goal Alignment
3. Small Group Activities
4. Reducing Work-in-Process
5. Quick Changeover Technology
6. Kaizen of Operations
7. Zero Monitor Manufacturing / Production 1 20
8. Coupled Manufacturing / Production 9 11 12
9. Maintaining Machines and Equipment 7 16
10. Workplace Discipline
14 5
11. Quality Assurance
12. Developing your Suppliers 6 4
13. Eliminating Waste
14. Empowering Employees to Make 17 8
Improvements 18 15
15. Skill Versatility and Cross Training 19 10 13
16. Production Scheduling 2 3
17. Efficiency Control
18. Using Information Systems
19. Conserving Energy and Materials
20. Leading Technology / Site Technology

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1.5.2 An explanation of the 20 Keys relations diagram

The 20 Keys programme consists of 20 focus areas. These Keys are the twenty aspects of operations
which we have to focus on to get to world class in a holistic and sustainable way. Four of these Keys are
Foundation Keys, which lay the foundation for sustainable improvement and the other sixteen are
Focus Keys which help us to improve in a certain aspect of the operations.

DID YOU KNOW?

The four foundation Keys energise the workplace. The four small 'gears' on the outside start to
turn the Energised Workplace axis on the inside. Once this axis turns, the workplace is geared
to become Better, Faster, Cheaper - continuously.

Once the foundation Keys have laid the basis for improvement, the organisation is ready to implement
improvements in a focused way. The focus Keys in the diagram are loosely grouped around the three
focus points: Better, Faster and Cheaper.

1.5.2.1 The heart of the 20 Keys - an energised workplace

At the very heart of the 20 Keys lies an energised workplace. This is a workplace where people
understand the bigger picture and subsequently, they are willing to participate in creating a world
class company.

IMPORTANT INFORMATION

Says Jack Welch:

"The companies that find a way to engage every mind - harness every volt of passionate energy, bring
excitement to the lives of the people, motivate people to come to work in search of a better way - every
day - will be the companies that will win."

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Prof. Kobayashi, discovered the same thing. Those companies that were able to rise to world class in
less than four decades were the companies that managed to energise and involve their employees in
the improvement effort. For this reason it lies at the heart of 20 Keys.

Energising the workplace is the role of leadership. Providing a sense of purpose and explaining the
bigger picture empowers people. Empowerment allows for initiative. Initiative allows for
improvement. The Foundation Keys, especially Keys 1, 2 and 3, are instrumental in bringing about this
energy. These Keys are discussed below.

1.5.2.2 The focus: Better, Faster, Cheaper … continuously

Once a company has managed to energise its workforce towards improvement, it has enabled itself to
continuously become better, faster and cheaper. The different Keys contain different areas of world
class practices and are aimed at these three goals:
• Better - fewer mistakes, less rework, better yield
• Faster - right product, right amount, right time
• Cheaper - less waste of materials, equipment and time

1.5.3 Four foundation Keys

1 20
9 11 12
7 16
14 5

6 4

17 8
18 15
19 10 13
2 3

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As mentioned before. the 20 Keys programme consists of 20 Keys, which are the 20 focus areas
which we need to implement in order to get us to world class. Using all 20 Keys will allow us to grow
our company in a holistic way - not implementing one concept at the cost of the other.

Four of these Keys are what we call Foundation Keys. Just like the foundations of a house, they also
form the basis on which sustainable improvement is built. It is important not to skim over the
implementation of these four Keys, as they make the difference between simply implementing best
practice and making it part of the fabric. However, it is also important to harness these Keys to bring
about real and meaningful improvement. Implementing the Foundation Keys is not an end in itself, but
rather the beginning of the journey - the journey of continuous improvement to world class.

The four Foundation Keys are briefly described below:

Key 1 - Cleaning and Organising to Make Work Easy

1 20
9 11 12
7 16
14 5

6 4

17 8
18 15
19 10 13
2 3

This is a very important Key in that it lays the physical foundation for improvement in the workplace. It
is about creating a visual, functional, organised workplace that improves productivity, highlights
improvement, improves safety and eliminates the need for searching. This Key has the following
benefits:
• Creates a safer environment
• Increases productivity and efficiency
• Machines last longer and break down less often
• Improves stock control and reduces duplicate ordering
• Creates a more pleasant environment to work in
• Gets us into improvement mode
• Etc.

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Energised Workplace
Better Faster Cheaper (Motivation/Safety)
Key 1 Critical Concepts Techniques Benefits

Cleaning • Cleaning • 4S process with Key 1 checksheet • Cleaning

and • Organising and supplementary checksheet • Organising
Organising • Making work easy • Modapts (Modular Arrangement of • Pride
• Visual workplace Predetermined Time Standards) • Productivity
and ergonomics to make work
• Establishing pride in the workplace easy
• Three-step improvement process
(train teams in Key 1, allocate
responsibility areas, implement
CAPDo cycle)
• Visual management

Key Measure • Checksheet score

• 4S Awards

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Key 2 - Goal Alignment 1

7
9 11 12
16
14 5

6 4

17 8
18 15
19 10 13
2 3

Key 2 is about giving people a sense of purpose. It is about allowing them see the bigger picture - to
take initiative, to take ownership.

In this Key, the management team and other important stakeholder partners answer the following
questions:

• WHY do we need to change? Why?

• Strategic alignment of the 20 Keys
• Articulating the case for change

• WHAT do we need to change?

• Translating the case for change into measurable, achievable KPIs
• Cascading these objectives to departments and all levels What?
• HOW are we going to change it?
• The fundamentals of the system
• Overview of the system
• Ensuring critical success factors How?
• Management style
• 20 Keys Management System
• Impact projects
Who?
• WHO is going to change it?
• Implementation roles and responsibilities

• WHEN are we going to change it?

• Implementation plan (including launch) When?
Once the questions above have been answered and the organisation is willing to participate and
contribute, teams will be given the opportunity to get involved in a structured manner.

In Key 2, we structure the organisation according to mini-businesses, so that every person is part of a
team that is accountable for a specific part of the business. In this way, the organisation becomes more
manageable and certainly more agile. Every team has its own set of internal and external customers,
with whom it builds relationships. In addition, every team has a set of Key Performance Indicators -
measures that it influences directly and is directly responsible for.

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Energised Workplace
Better Faster Cheaper (Motivation/Safety)
Key 2 Techniques Benefits

Rationalising • Streamline organisation structure • Key 2 checksheet • Streamlined

the System / • Define mission, values and goals • Organisation structure design organisation
Goal • Deploy and cascade mission, values • Performance measurement system • Clear
Alignment and goals down to all levels (QCDM) measurable
(alignment) • Visual management goals
• Align and ensure objective • Multi-level meetings (different • Goals deployed
achievement types) and communication to first-line
• Align “top down leadership and • Three-item kit (basic policy, goal • Top and bottom
bottom-up participation” achievement image, overall work together
• Overall 20 Keys implementation and renewal programme) as one team
improvement process key • Action planning, CAPDo cycle • People and
company goals
• Vector alignment aligned
• 20 Keys promotion organisation • Improved
• Goal achievement matrix (3-colour communication
evaluation chart)

Key Measure • Checksheet score

• Goal achievement matrix

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Key 3 - Small Group Activities 1

7
9 11 12
16
14 5

6 4

17 8
18 15
19 10 13
2 3

One of the fundamentals of the 20 Keys is the involvement of all

in the improvement effort. Key 3 is about getting everyone
thinking about improvement throughout the organisation. Small
group activities are small problem solving groups comprised of
people from all levels and functions of the organisation. It could
be a group of three to five operators brainstorming about a
specific issue they faced on the previous shift, or it could be a
small group of people from different levels thinking about a new
way of caring for our machines.

This Key is about implementing as many as possible

improvements. For this we need to establish a good system for
generating ideas and an even better system for implementing
ideas.

Key 3 works closely with Key 14.

Energised Workplace
Better Faster Cheaper (Motivation/Safety)
Key 3 Critical Concepts Techniques Benefits

Small Group • Teamworking • Key 3 map • Utilise the

Activities • Motivation • SuperVision™ for SuperTeams wisdom (ideas)
• Communication Coaching Programme of the people
• Mini-businesses and mini-business • Green areas • Improve
areas • Mini-business management motivation
• Role of the supervisor / team leader • Visual management • Improve
teamwork
• Kaizen suggestions • Suggestion system
• Supervisors
• Small group meetings (Kaizen become coaches
teams, daily team meetings)
• Mini-business
concept
implemented
• Improved
communication

Key Measure • Number of themes completed

• Number of suggestions implemented / person / year

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Key 20 - Leading Technology / Site Technology
1 20
9 11 12
7 16
14 5

6 4

17 8
18 15
19 10 13
2 3

An important aspect of staying both relevant and competitive in the market is having a proactive, well-
thought through technology strategy. This Key will help us to develop such a strategy - so that our
company will have technology that will help us to lead the industry - this is called leading technology.
However, Key 20 will also guide us in developing site technology - this refers to our ability to develop
and improve technology in-house.

The word "technology" refers to hardware (machines and equipment), information technology (IT
hard- and software), know-how and intellectual property and patents.

Better Faster Cheaper Technology

Key 20 Critical Concepts Techniques Benefits

Leading • Site technology (“software”; people • Key 20 map • Measure

Technology / skills, knowledge, experience, speed • Identification of core technologies “technology”
Site at which new technology/products (site and leading) (“software” –
Technology are developed in-house) • Development of criteria to people skills and
• Leading technology (“hardware”, benchmarking on core experience and
equipment, machines, layout, technologies “hardware”
infrastructure) infrastructure,
• Action planning to improve core machines, etc.)
• Identify relevant areas to compete technologies
globally • Use measure to
• Action planning to ensure the plan and achieve
• Benchmark against own industry transfer of site technologies to
standards improvement
new generations

Key Measure • Radar chart evaluation

• Critical technologies / Number of patent applications

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1.5.4 16 focus Keys
When the Foundations Keys have been launched and a sufficient foundation has been formed, we start
focusing our improvement efforts in a very structured way. We do this through the implementation of
the 16 Focus Keys. Each of these Keys focuses on a specific aspect of operations. They are briefly
described below:

Key 4 - Reducing Work-in-process 1

9 11 12
20

7 16
14 5
This Key helps us to establish a smooth flow of product, 6 4

information and service. Like a boat flowing down a river is 17 8

18 15
slowed down by dams holding up the flow of the river, so 19 10 13
2 3
the different work-in-process stores (such as WIP stores
and in-trays) hold up the flow of work through the system. This Key makes use of techniques such as
Value Stream Mapping to help us identify how and where value flows. It also uses techniques and
methodologies such as Just-In-Time, Theory of Constraints and Re-order levels, etc.

Better Faster Cheaper Delivery

Key 4 Critical Concepts Techniques Benefits

Reducing • Reduce work-in-process = • Key 4 map • Broad view of

Work-in- everything in the process of • Eliminating the seven wastes WIP
Process converting raw materials into • Four-step process (create a model / • Reduction in
finished goods stock flowchart, decide what to work on, WIP
• Work-in-process causes many define the implementation team,
implement the improved process) • Cost reduction
problems and hides other problems
• Kobayashi’s eight rules for reducing
• Understand that work-in-process WIP (incorporated in the four-step
reduction is the key to cost process)
reduction and easier work • Utilises the support techniques of Keys
• Shorten production lead time 5 and 8
• Highly integrated with other Keys • Analysis of the impact on operational
especially Keys 5, 8, 16 (capacities, changeovers, quality,
maintenance, coupling, suppliers,
scheduling, etc.) and strategic issues
(marketing, sales decisions, forecasting,
product range, performance
measurement, etc.) on WIP
• Make-for-stock and make-to-order
philosophies
• Synchronous production system
• Bottleneck and buffer management

Key Measure • WIP reduction value / volume

• Document in process reduction (tray height / number of excessive cases)

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Key 5 - Quick Change over Technology 1
9 11 12
20

7 16
14 5

6 4

17 8
18 15
19 10 13
2 3

This Key uses the SMED methodology to achieve single minute changeovers. SMED stands for Single
Minute Exchange of Dies - a methodology clearly seen in the pit stops of the Grand Prix! The Key helps
us to waste as little as possible time when doing changeovers and set-ups. What is more, it will help us
to be more flexible so that we are able to produce smaller batches, more frequently.

Better Faster Cheaper Cost

Key 5 Critical Concepts Techniques Benefits

Quick • Improve flexibility and speed of • Key 5 map • Flexibility and

Changeover work • Operation improvement sheet (OIS) responsiveness
Technology • Roll out the process via pilot areas (step-by-step process flowchart) of the company
• Goal of single minutes changeover • Five-step process (analyse the improved
(and single minute information changeover (with an OIS), move • Quick
retrieval) and ultimately single cycle internal operations to external changeovers/
changeover operations, reduce internal speed of work
operations time, reduce external achieved
• Changeover time is time from last of operations times, standardise with a
good product A to first of good • Speed of
standard operating procedure)
product B information
• Man-machine charts retrieval
• Process flowcharting improved
• Mashafinger – game • Cost reduction
• Utilise other Keys, especially Keys 7,
11 and 15

Key Measure • Changeover times - production (from good product A to good product B)
• Number of single changeover machines
• Single minute info retrieval %

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Key 6 - Kaizen of Operations
1 20
9 11 12
7 16
14 5

6 4

17 8
18 15
19 10 13
2 3

Key 6 looks at continuously improving (Kaizen!) the various operations that aim to transform product
or information. This Key contains many techniques traditionally used by Industrial Engineers, such as
Process Flow Diagrams, Physical Flow Diagrams, etc. All of these techniques help us to:
• eliminate wasteful activities
• optimise necessary non value-adding activities
• maximise value-adding activities

Better Faster Cheaper Cost

Key 6 Critical Concepts Techniques Benefits

Kaizen of • Improve productivity by viewing all • Key Key 6 map • Productivity

Operations processes from a holistic point of • Process improvement – Five-step measured
view and eliminating non value- process (identify and document the • Productivity
adding work and increasing value- process, value analysis (VA) of activities
improved
adding work in the process, develop an
improvement plan, improve the
• Value analysis of operations / process, standardise the process
processes (SOP))
• Ongoing improvement (based on • Activity flow diagram
the standard operating procedure) • Process flow diagram
• Involvement of all people in ongoing • Physical flow diagram
improvement • Operations improvement sheet (OIS)
• Levels of Kaizen (spot, line, area, • Operations improvement schedule
volumetric) (OISH)
• Standard operating procedure (SOP)
• Questioning techniques (5 Why’s,
5W2H, etc.)
• Value analysis questions
• Seven QC Tools
• Kaizen in the process industry (multi-
Key improvement technology)

Key Measure • Productivity (volume / person / hour or good units / person)

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Key 7 - Zero Monitoring Manufacturing
1 20
9 11 12
7 16
14 5

6 4

17 8
18 15
19 10 13
2 3

Key 7 teaches us to modify our processes so that they do not require us to monitor them "just in case
something goes wrong". It is about reducing variability and improving reliability and capability of the
processes. This Key makes use of autonomation and mistake-proofing Keys to achieve this.

Better Faster Cheaper Cost

Key 7 Critical Concepts Techniques Benefits

Zero Monitor • Eliminate the waste of monitoring • Key 7 map • Reduce waste of
Manufac- • Goal of zero defects • Customisation of equipment monitoring
turing / • Roll out the process via pilot areas • One-page standards (OPS) for • Improve quality
Production indirect functions
• Self-regulating and self-interrupting
equipment • Keys 5, 14, 15 and 20 plus all other
Keys play a role in building this
Key
• Man-machine charts

Key Measure • Indirect - % one-page standards implemented

• Direct - % machine monitoring reduced

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Key 8 - Coupled Manufacturing
1 20
9 11 12
7 16
14 5

6 4

17 8
18 15
19 10 13
2 3

Key 8 is about linking the various processes of the supply chain in the most effective way possible. It
strives to make the coupling of processes automatic and visual, so that the chain is never broken due to
poor communication. Key 8 helps us to create a "pull" system - letting the customer and the
bottleneck determine the pace of production.

Better Faster Cheaper Delivery

Key 8 Critical Concepts Techniques Benefits

Coupled • Streamlining the flow of material and • Key 8 map • Streamlined flow
Manufactu- information throughout the • Various concepts of coupling of material and
ring / organisation through teamwork including the “store” and information
Production between up- and downstream “supermarket” concept • Factory
processes and between • Visual management flexibility
departments • Up- and
• Kanban systems (JIT)
• Communication, functional and downstream
physical links between processes • Synchronous production systems
communication
• Various coupling methods • Cellular manufacturing and organisation
• Highly integrated with other Keys, • Goldfish bowl discussions to teamwork
especially Keys 4 and 16 improve flow of information and
teamwork between departments
• Pull vs. push systems
• Four-step process (determine how
processes are linked, reduce
inventory levels, reduce coupling
points, combine processes)

Key Measure • Direct - number / % model stores completed

• Interprocess coupling visually identified %
• Indirect - Number of goldfish bowl meetings held / suggestions implemented

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Key 9 - Maintaining Machines and Equipment
1 20
9 11 12
7 16
14 5

6 4

17 8
18 15
19 10 13
2 3

The main focus of this Key is to improve the effectiveness of our equipment. Key 9 does this by,
amongst other things, involving the operators of the equipment in daily and routine preventive
maintenance so that the artisans and engineers can focus on implementing the rest of the asset care
strategy. An important part of Key 9 is about establishing this partnership between production and
engineering. Another important concept worth mentioning here is the solving of root causes of
problems - this means we will spend less of our time on fixing the same old problem and more of our
time on improving equipment.

Better Faster Cheaper Quality

Key 9 Critical Concepts Techniques Benefits

Maintaining • Joint venture between operators and • Key 9 checksheet and • Equipment
Machines and maintenance / engineering supplementary checksheet operation rate
Equipment • Improving the equipment operating • Eliminating the three evils improvement
rate (EOR) (inadequate lubrication, cleaning • Three evils of
• Equipment logs and history and mishandling of equipment) machine
recording • Preventive maintenance (PM) breakdowns
Preventive maintenance of machines • Total Productive Maintenance eliminated
/ equipment (roll out process by concepts • Maintenance and
starting with important machines / • Measurement of EOR production
equipment) work together
• Machine / equipment log books, as one team
recording of history
• Machine
• Maintenance blueprint (structure, productivity
roles and policies) improves
• Checksheets and checklists
• Improvement maintenance and the
power of the 5Why’s
• Implementation process

Key Measure • Checksheet score

• EOR (Equipment Operation Rate)
• % Three evils breakdown reduced
• Number of mini stoppages / day
• Number of breakdowns / year

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Key 10 - Workplace Discsipline
1 20
9 11 12
7 16
14 5

6 4

17 8
18 15
19 10 13
2 3

Key 10 is about creating a 'sharp' site - a site with a high level of discipline in all that we do: safety, time
keeping, appearance, compliance to procedures, etc. It focuses on improving time keeping and the
overall work ethic so that productivity is not compromised through poor work practices.

Energised Workplace
Better Faster Cheaper (Motivation/Safety)
Key 10 Critical Concepts Techniques Benefits

Workplace • Workplace discipline • Key 10 checksheet • Discipline (time,

Discipline • Value adding work habits • Morning meetings work habits,
• Team meetings at start of work • Visual management (attendance cleaning and
charts, boards indicating organising)
• Positive, friendly work atmosphere
whereabouts, work plans, etc.) • Commitment /
• Agreement of time policies (team dedication
leader discussions) • Good work
• Good work order rules (respect, order rules
consult, communicate, report) (respecting,
consulting,
communicating,
reporting)
• Positive friendly
work
atmosphere

Key Measure • Checksheet score

• % Absenteeism

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Key 11 - Quality Assurance
1 20
9 11 12
7 16
14 5

6 4

17 8
18 15
19 10 13
2 3

Key 11 focuses on building quality into processes, rather than inspecting it into processes. Quality
assurance rather than quality control. Prevention rather than cure! It does this through involving
operators in inspecting their work and getting teams to focus on reducing the time to detect a mistake.

Better Faster Cheaper Quality

Key 11 Critical Concepts Techniques Benefits

Quality • Supply chain • Key 11 checksheet • Quality

Assurance • Internal customers (next process is • Defining customers (customer improvement at
the customer) / External customers relationship chart) source
• Support and link to ISO9002 • Process for customer satisfaction • Time to detect
Quality at source through proper management and time to
training, tools and support • Seven quality control tools (pareto, correct
Measurement, quick feedback, fishbone, process chart, histogram, • SOP’s
communication (time to detect / scatter diagram, run chart, SPC) • Root cause
time to correct) • Mistake-proof devices and systems elimination
Goal is zero defects • SOP’s through seven
QC tools
• Three pillars of quality assurance
(source inspection, 100%
inspection, immediate action
(TTD, TTC))
• Two-point inspection systems
• CAPDo cycle

Key Measure • Checksheet score

• Defects reduced
• Customer claims reduction
• Abnormality rate
• From level 3.5 upward – Six Sigma

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Key 12 - Supplier Development
1 20
9 11 12
7 16
14 5

6 4

17 8
18 15
19 10 13
2 3

Key 12 is about developing our suppliers and contractors. It is about developing them as strategic
partners in our journey to world class - the better, faster and cheaper they can deliver a service, the
better, faster and cheaper we can become.

Better Faster Cheaper Quality

Key 12 Critical Concepts Techniques Benefits

Developing • Supply chain • Key 12 map • Supplier

your • Internal suppliers (upstream process • Defining suppliers (supplier reliability
Suppliers is the supplier) relationship chart) • Supplier quality
• External suppliers • Process for supplier development • Supplier speed
• Supplier development to strengthen management • Supplier cost
the supply chain • Value engineering (VE) and value effectiveness
analysis (VA)
• 10-day supplier development
programme
• Introduce / assist with
improvement of supplier
workplaces / organisations
(through inter alia 20 Keys)

Key Measure • Supplier quality problems %

• Delivery delays %
• Supplier service level
• Number of suggestions to suppliers / upstream processes

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Key 13 - Eliminating Waste
1 20
9 11 12
7 16
14 5

6 4

17 8
18 15
19 10 13
2 3

Muda is the Japanese word for waste. This term includes all forms of waste - the waste of time, money,
energy, material, etc. Key 13 gets teams to focus on eliminating wasteful activities in their workplaces.

Better Faster Cheaper Cost

Key 13 Critical Concepts Techniques Benefits

Eliminating • Culture of eliminating wasteful • Key 13 map • Elimination of

Waste human activities (e.g. search, walk, • Measurement (value-adding work non value-
wait, etc.) rate) adding human
• Value-adding work rate • Activity sampling (by team work
• Measurement, then “mining” out members themselves) to identify • Improvement in
waste (opportunities) types and magnitude of wasteful value-adding
activities work rate
• Treasure map (indicating
opportunities for reducing wasteful
activities)
• Visual management

Key Measure • Actual (value adding) work rate %

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Key 14 - Empowering Employees to
make Improvements 20
1
9 11 12
7 16
14 5

6 4

17 8
18 15
19 10 13
2 3

In this Key we empower people to implement their own ideas - whether it means simply allowing them
to try new things or whether it means to give them the necessary training, material and tools to
implement their own ideas.

Better Faster Cheaper Cost

Key 14 Critical Concepts Techniques Benefits

Empowering • Importance of utilising creativity of • Key 14 map • Empowerment

Employees to people • Kaizen / improvement corners of people to
make • People implement own ideas • Empowerment model (Direction, implement own
Improve- • Roll out process of Kaizen / Support, Ownership) improvement
ments improvement corners in the ideas
• Skills / safety training (Key 15)
workplace • Enhance skill
• Improvement exhibition and level and
contest (e.g. for carts) employee
flexibility

Key Measure • Number of improvement corners

• Level of utilisation (person / year)

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Key 15 - Skill Versatility and Cross-training
1 20
9 11 12
7 16
14 5

6 4

17 8
18 15
19 10 13
2 3

A team where there is little skills versatility often finds itself vulnerable to absenteeism and other
changes. For this reason, Key 15 helps a team to ensure the necessary "skills mix". It also enables jobs
rotation and personal development - making work more interesting and more rewarding!

Better Faster Cheaper Quality

Key 15 Critical Concepts Techniques Benefits

Skill • Visual skill evaluation and needs • Key 15 map • Skill level
Versatility analysis • Visual management • Skill versatility
and Cross • Skills versatility through cross • Skills matrix • SOP adherence
Training training • Skills development plan and • Quality
• Making work easier to facilitate schedule • Motivation
cross training • Skills competence graph
• Flexibility for the organisation, • Rule of 3
development opportunities for
people • SOP’s
• Start within teams, then across • Making work easy (through other
teams Keys) for people to learn
additional skills

Key Measure • Skill level % improvement (Skill Matrix)

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Key 16 - Production Scheduling
1 20
9 11 12
7 16
14 5

6 4

17 8
18 15
19 10 13
2 3

Key 16 aims to establish an integrated, customer-focused production planning and scheduling system
which is founded on the principles of lean manufacturing. Production teams schedule their daily
production based on the requirements of their internal customers, the efficiency targets of Key 17 and
other process parameters. They subsequently also measure their adherence against this plan and then
focus on improving their performance.

Better Faster Cheaper Delivery

Key 16 Critical Concepts Techniques Benefits

Production • On-time delivery of products and • Key 16 map • On-time delivery

Scheduling services • Visual management of products and
• Flexibility to accommodate fluctuating • Measurement of delivery services
market requirements performance • Flexibility to
• Planning, scheduling and control of all • MRP concepts accommodate
resources in the process of converting • Backwards and forward scheduling changing market
raw materials to finished goods conditions
• Bottleneck / constraint scheduling
• Highly integrated with other Keys,
especially Keys 8 and 18 • Planning boards, Gantt charts

Key Measure • Direct: on-time delivery %

• If there are no delivery delays, then take daily delay against production plan (plan adherence)
• Indirect: delivery times improvement %

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Key 17 - Efficiency Control
1 20
9 11 12
7 16
14 5

6 4

17 8
18 15
19 10 13
2 3

This Key is primarily about establishing realistic and motivating throughput rates for all processes and
work. And then measuring actual performance against these targets to see how well we are
performing. The more often we measure, the better - this is where short interval controls come in.
These standards also form the basis for Key 16.

Better Faster Cheaper Cost

Key 17 Critical Concepts Techniques Benefits

Efficiency • Efficiency (for physical units) = Actual • Key 17 checksheet • Efficiency

Control output / Standard Output • Measurement of efficiency measured
• Efficiency (for time) = Standard man- • Efficiency control • Efficiency
hours / Actual man-hours • Visual management control to
• Motivate people with realistic targets, • Setting of time standards motivate
involve them in setting standards Direct observation employees
• Time standards (rough overall Rated observation
estimates product families Compared method (MTM, Modapts,
operations) PMTS)
• Actual results

Key Measure • Checksheet score

• Efficiency % (two formulae)

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Key 18 - Using Information Systems
1 20
9 11 12
7 16
14 5

6 4

17 8
18 15
19 10 13
2 3

Key 18 is an important supporting Key to almost all of the other Keys. It helps us to integrate our
information systems to that we can achieve "live" information - having the necessary information at
our disposal when we need it, in the format that we need it. It encourages us to increasingly make use
of micro-processes and software packages in order to make our jobs easier and to provide better
processes.

Better Faster Cheaper Technology

Key 18 Critical Concepts Techniques Benefits

Using • Use of information systems to • Key 18 map • Measure IT

Information strengthen the constitution/capacity • Growth in information systems and ability of
Systems of the business use of micro-processors are company
• Simplify and reduce waste before supported by all other Keys • Use measure to
computerisation • Strategic information systems plan and achieve
• Levels of integration (stand alone to strategy improvement
highly integrated: office, production, • Office automation
suppliers, customers) • Flexible manufacturing systems
(FMS)
• CNC and PLC systems

Key Measure • Benchmark score

• PC utilisation increase %

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20
Key 19 - Conserving Energy and Materials 1

7
9 11 12
16
14 5

6 4
Key 19 is about creating an organisation-wide conservation culture. Making
17 8
people at all levels aware of how they can help to save energy and materials - 18 15
19 10 13
even in small ways - will contribute greatly towards our organisation 2 3

becoming a lean, competitive market player. However, this Key not only
looks at the detail saving measures that all of us can help with on a day-to-
day basis, but it also helps us to identify those developments that will assist
us in having a big impact on our operating costs, such as energy saving
technology and the like.

Better Faster Cheaper Cost

Key 19 Critical Concepts Techniques Benefits

Conserving • Improving material yield • Key 19 map • Conservation of

Energy and • Cost saving culture • Visual management (costs, graphs, energy and
Materials • Start within existing infrastructure slogans, suggestions, etc.) company- materials
wide improvement initiative • Improved yields
then use advanced technology
• Measure and improve material yield
• Link to ISO1400, limit waste of
resources and waste of the • Cost awareness campaigns
environment • Small group activities (Key 3)
• Overall strategy to conserve energy
and materials and to improve yield
• Advanced technology

Key Measure • Raw material utilisation / Yield improvement

• Energy / Cost saving

LEARNING APPLICATION 2

Which Keys to do you believe will have the biggest impact at your workplace? Why? Share your
ideas with the group.

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1.6 The 20 Keys five-level scoring system
Throughout the 20 Keys, in all the Keys, we define the journey to world class in five levels. Below we
will briefly explain what each of the five levels is about

1.6.1 The five levels of improvement

1 2 3 4 5

The Starting
World Class
Point

Starting point - Level 1

World No. 1- Level 5

There are five levels in the 20 Keys map which easily illustrates the level of your company and what
should be done to improve it.

By using a simple five-point multi-industry, international benchmarking system, each of the 20 Keys is
evaluated within the organisation and an overall 20 Keys score is determined. Involve as many
colleagues as possible in the evaluation process to find the average score for the company. It is this
score that benchmarks organisations in terms of world class performance and forms the basis from
which improvements are measured. The five-level benchmark provides a mechanism by which each of
the 20 Keys can be quantified. The minimum score is 20 and the maximum is 100.

Through continual improvement in all the 20 Keys, organisations can achieve world class levels of
performance and sustain and enhance market share, competitiveness, profitability and customer
satisfaction. It is through the holistic application of the 20 Keys that this becomes possible.

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If a company scores five points in all the Keys, the total score is 100 points. However, there has never
been a company to score 100 points.

This programme makes it possible for employees at every level to participate in benchmarking their
company in terms of the constitution of the workplace and it provides a specific method to improve
towards their goals.

Five-level benchmarking evaluation system

Level Description

This level of organisation performance signifies the lowest possible score and it
1
is characterised by very traditional, “old style” thinking

In level 2 organisations, people have been fully trained in the concepts of the
particular Key. Thinking has changed. Improvement efforts are under way
2
with a single focus or they have undertaken a range of (relatively speaking)
unrelated initiatives

Positive results are being achieved with significant improvements in motivation,

3
productivity, quality, cost and speed of delivery

Organisation-wide teamwork is required to move to this level. In addition, the

4 company usually needs to introduce new technology. The company adds value
through all of its activities

A world leader in its field. Highly flexible, reliable, innovative, productive and
5
competitive. Able to continuously improve itself

Most organisations embarking on the 20 Keys programme have found that out of a possible 100 points,
their initial benchmarking score is about 30.

1.6.2 The importance of sequence

One of the most valuable lessons Prof. Kobayashi learned was the importance of implementing best
practice in the right sequence. Just like a human is not fit enough to climb Mount Everest without first
training, so companies are often not "fit" enough to implement sophisticated techniques without first
preparing the organisation for the implementation.

36 Facilitator's Manual
As you will see throughout all the Keys, this sequence weaves through the implementation like a
golden thread:

MOVING FROM LEVEL 1 TO LEVEL 2

• Create the need for change - explain why this Key is important
• Empower people to be involved in the change by training them in the concepts of the Key.

MOVING FROM LEVEL 2 TO LEVEL 3

• Plan, Do, Check, Act - start small, even if it means starting with a pilot project. "O v e r c o m e t h e
inertia that comes with change - energise, hold competitions, retrain, etc.
• Get comfortable with continuously improving on the concepts that have been implemented.
• Implement the basics first and make sure that people have the necessary skills and that they are
clear about their responsibilities
• make sure that people have the right tools and resources
• make sure that we are getting the basic things right - those concepts that everyone knows they
should be doing, but are often neglected
• (Examples of basics are: adhering to the planned maintenance schedule, regular lubrication of
machines, not mishandling machines, doing daily checks of machines, etc.).

MOVING FROM LEVEL 3 TO LEVEL 4 AND BEYOND

• Make sure that the improvement effort is supported by the whole supply chain and throughout the
organisation
• Start studying and developing more sophisticated techniques/concepts/technology
• Select appropriate techniques/concepts/technologies and implement
• Build the capability of the organisation to understand, implement and develop sophisticated
techniques and methodologies.

LEARNING APPLICATION 3

Have you ever experienced a change initiative that failed because: "The right sequence of imple-
mentation was not followed or done properly?

• A crucial step was omitted?

• Concepts were implemented before other things were in place?
• Other reasons?

Share the story with the group.

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1.6.3 Tips for the Journey

TIP 1: KNOWING WHEN TO MOVE AND WHEN TO STAY

An important skill to learn when implementing continuous improvement is when to move ahead to the
next level and when to rather consolidate current efforts. This is not such an easy situation to read and
this is where it is important to ask the advice of Change Agents (see Chapter 3) - people who are
sensitive to the organisation's needs.

The trick is of course not to get too comfortable and to keep challenging the organisation to improve,
but not to implement concepts superficially. A good way in which to prevent either of these situations
is to be uncompromising in holding the six-monthly benchmark of all the Keys. This will ensure that the
organisation is challenged with new ideas, and that the existing implementation is also measured
against set criteria. How the organisation scores will determine whether it is ready to move to the
next level. An organisation is ready to move on when 80% of the current level's checksheet criteria
have been met.

TIP 2: SOMETIMES YOU NEED TO STAND

ON TOP OF A HILL TO SEE THE NEXT ONE
It might appear that certain concepts described in the Keys will never be implemented in your
organisation. However, often the organisation is simply not ready to implement these concepts yet. In
the same way that a big mountain can be hidden behind a small hill (if you are standing close to it),
advanced concepts will only seem possible once the organisation has "climbed the smaller hills".
For this reason it is important not to dismiss concepts just because they do not seem possible at the
present time. As the organisation matures, it will develop the need for the next level. Therefore,
we shouldn't get too hung up on future expectations, but rather, we should focus on getting the
organisation to the most apparent, next level.

TIP 3: TAKE 2
A good pace of improvement is to take two to three years to improve one level on all 20 Keys. A
steady pace in any single Key is one to two years to move up one level.

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1.7 20 Keys and lean thinking
Key principles and techniques to eliminate Muda

Value 1 20
9 11 12
Value Stream 7 16
14 5
Flow
6 4
Pull 8
17
18 15
Perfection
19 10 13
2 3
Lean Thinking

20 Keys Philosophy

Case studies

Lantech 1 20
9 11 12
Wiremold 7 16
14 5
Pratt & Whitney
6 4
Porsche 8
17

Toyota 18 15
Distribution 19 10 13
2 3

Case Studies Nearly all Keys utilised

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Womack & Jones in their latest book [1] on the subject comment as follows:

“Lean Thinking is lean because it provides a way to do more and more with less and less
• less human effort
• less equipment
• less time
• less space
while coming closer and closer to providing customers with exactly what they want.”

“Time-to-market for new products will be halved and a wider variety of products, within product families, can be
offered at very modest additional cost. What’s more, the capital investments required will be very modest, even
negative, if facilities and equipment can be freed up and sold.

Lean thinking also provides a way to make work more satisfying by providing immediate feedback on efforts to
convert muda into value.

And, in striking contrast with the recent craze for reengineering, it provides a way to create new work rather
than simply destroying jobs in the name of efficiency.”

The prize we can grasp now

“Based on years of benchmarking and observation in organisations around the world, we have developed the
following simple rule of thumb: Converting a classic batch-and-queue production system to continuous flow
with effective pull by the customer will double labour productivity all the way through the system (for direct
managerial, and technical workers, from raw materials to delivered products) while cutting production
throughput times by 90 percent and reducing inventories in the system by 90 percent as well. Errors reaching
the customer and scrap within the production process are typically cut in half, as are job-related injuries.”

Earnest Advice
“Our earnest advice to firms today is simple. To hell with your competitors; compete against perfection by
identifying all activities that are muda and eliminating them. This is an absolute rather than a relative standard
which can provide the essential North Star for any organisation. (In its most spectacular application, it has kept
the Toyota organisation in the lead for forty years). However, to put this admonition to work you must master
the key techniques for eliminating muda.”

The 20 Keys integrates all the key techniques for eliminating muda in a comprehensive approach.
[1] Womack, P & Jones, D.T., Lean Thinking: Banish Waste and Create Wealth in your Corporation, Simon
& Schuster, New York, 1996.

40 Facilitator's Manual
g
e addin
u
Val gement
a
Man
g
Th inkin
Lean

1 2 3 4 5

Prof. Kobayashi visually relates lean thinking and the 20 Keys, as shown above.

1.8 The interrelationships between the 20 Keys

We mentioned earlier that the different Keys are loosely grouped around the focus areas (Better,
Faster, Cheaper) that they tend to influence the most. However, the Keys all complement and depend
on each other. For example, Skill Versatility (Key 15) is essential for progress in Maintaining Machines
and Equipment (Key 9). And Key 9 is essential for effective Production Scheduling (Key 16). There are
many other examples of this - this is exactly why the 20 Keys is the vehicle for HOLISTIC and
SUSTAINABLE continuous improvement.

In the tables on the next few pages, the interrelationships between the different Keys are shown using
the 20 Keys Matrix.

The 20 Keys are interrelated and it is therefore essential that it be introduced as an integrated
approach, using the power of all 20 Keys.

The 20 Keys matrix shows the interrelationships between the Keys by answering two questions :

• What needs to be done in all the other 19 Keys to improve a specific Key?
• What needs to be done in a specific Key to improve the other 19 Keys?

The 20 Keys matrix thus shows both the horizontal and vertical relationships between the Keys.

For every Key, a matrix was developed, indicating:

• Actions that should be taken in the target Key to support the other Keys, and
• Actions that should be taken in the other Keys to support the target Key.

NB: 20 Keys facilitators and Key leaders should study these interrelationships in order to be able to
guide the organisation effectively in implementation

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Matrix
Better Faster Cheaper

For every Key a workplace Kaizen matrix was developed, indicating:

• Actions that should be taken in the target Key to support the other Keys
Actions that should be taken in the other Keys to support the target Key

Target Key 1 - Cleaning and Organising to Make Work Easy

Key 1
• Post action plans in such a way that it is easy to understand and to follow up.
Key 2 4S makes work easy. Support complete accomplishment.
• Utilise Kaizen tools to make it easy to tackle the next theme.
Key 3 Tackle 4S themes one after another through small group activities for Kaizen.
• Designate and clearly mark the floor for work-in-process locations.
Key 4 Reduce inventory using rule books and save space by keeping the place neat and tidy.

• Keep tools at the point of use and make file retrieval easy.
Key 5 Place fixtures at the point of use for easy handling.
• Improve ergonomics in handling products, jigs and tools.
Key 6 Improve Modapts - minimise handling
• Sort out jigs and tools and clearly mark the location to eliminate D3 Modapts.
Key 7 Clean up during operation.

Key 8 • Colour the store area in coloured tape to make surpluses clear.
Enhance communication through control board and schedules to prevent delay.
• Clean equipment to make it possible to identify abnormalities.
Key 9
Conduct preventive maintenance to eliminate the three evils and keep equipment clean.
• Keep cleaning equipment at hand to immediately clean any dirt.
Key 10 Work until the last minute of work hours, including preparations for the next day/shift before leaving.
• Keep measuring equipment at hand. Display quality samples to find problems at an early stage.
Key 11 Institute actions and rules to quickly respond to quality problems.
• 4S to make job easy needs to be taught using case studies.
Key 12 Institute proper delivery methods to better serve subsequent processes.
• Clearly indicate locations. Eliminate waste of searching by keeping everything at the point of use.
Key 13 Conduct a waste analysis to make handling ergonomically easy.

• Erect tool racks and shelves in the form and size suitable to the workplace.
Key 14 Review tool racks and shelves to keep them tidy and easy to use.

• Store tools and manuals in clearly labeled racks within easy reach.
Key 15
Keep tool locations clear so that anyone can use the tools and can put them back in the right place.
• Make production status clearly visible by indicating and eliminating unnecessary objects.
Key 16 Run products on schedule through control board, signs and schedules. Keep everything inside designated
locations.
• Post graphs to draw attention and interest.
Key 17 Post graphs to show 4S improvement levels to promote competition.
• Sort out sections and labeling to make it easy to computerise.
Key 18
Materials should be stored properly and levels should correspond with the computer system.
• Eliminate unnecessary objects and materials not being used to save space.
Key 19 Place everything for easy ergonomic handling.

• Keep “Skill Versatility Chart” visible to energise activity so as to continually improve skills.
Key 20 Introduce new technology to reduce processes and make operation easy.

42 Facilitator's Manual
Matrix
Better Faster Cheaper

For every Key a workplace Kaizen matrix was developed, indicating:

• Actions that should be taken in the target Key to support the other Keys
Actions that should be taken in the other Keys to support the target Key

Target Key 2 - Rationalising the System / Goal Alignment

• Support 4S accomplishment to make job easy.
Visually display action plan to make follow-up by managers easy.

• Set numerical goals for Keys to ensure SGAs support for and active work on Keys.
Choose themes for SGAs one after another from overall 20 Keys action plan.

• Ensure complete understanding for the need to reduce WIP and support the formation of WIP rules.
Prepare rule books to meet goals.

• Support Kaizen through complete understanding of the single minute changeover.

Select and Kaizen target machines. Visually display “challenge sign” at the machines.

• Promote commitment to double productivity. Set numerical goals per operation.

Make “Kaizen Plan” per operation and promote Kaizen.

• Support zero monitoring actions by complete understanding of the needs of zero monitoring.
Kaizen to eliminate monitoring for all machines.

• Support activity for smooth coupling among upstream and downstream workplaces and processes.
Complete coupling beyond upstream and downstream processes to achieve Level 4 teamworking style.
• Indicate clearly losses caused by equipment failure to ensure complete understanding of the need of
preventive maintenance.
Implement Kaizen to eliminate the three evils and ensure good control to prevent recurrences.
• Strengthen first-line managers and ensure that they lead Kaizen for a disciplined workplace.
Promote communication through RCC (report, communicate, consult).
• Analyse and clarify the situation regularly for defective products and set numerical improvement goals.
Implement mistake proofing to find root cause. Establish a culture of working towards zero defect.
• Train suppliers about basic principles of 20 Keys.
Give training to suppliers in the same way as in your company to accomplish goals as a whole.
• Promote complete understanding of what waste is and support actions against waste.
Take complete action to eliminate waste and improve actual work rate.
• Guide and support employees so that they themselves can implement Kaizen.
Use Kaizen corner for your own Kaizen.
• Promote complete understanding of the needs for cross training and provide support to make it easy.
Ensure that a positive attitude for skill versatility develops, based on visual display of skill matrices.

• Enhance common understanding about promised date of delivery and promote commitment to keep it.
Smooth out operation through the use of a control board and improve on-time delivery.
• Give recognition to employees for their efforts by talking to them about efficiency control and motivate
them further.
Use graphs to show goal accomplishment in terms of efficiency control and publicise efforts.
• Understand CPU for data processing and support its introduction.
Use computers to store and process relevant information.
• Enhance awareness towards conserving energy and materials. Support actions to improve yield.
Accomplish yield goals by taking actions against visible and non-visible waste.
• Introduce and support new technology and ensure own first-class site technology.
Introduce new technology for survival, growth and development and refine and develop own site technology
through Key 15.

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Facilitator's Manual Chapter 1: Introduction to the 20 Keys Programme
Revised 08/2001
ORGANISATION DEVELOPMENT
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INTERNATIONAL
Matrix
Better Faster Cheaper

For every Key a workplace Kaizen matrix was developed, indicating:

• Actions that should be taken in the target Key to support the other Keys
Actions that should be taken in the other Keys to support the target Key

Target Key 3 - Small Group Activities

• Tackle cleaning and organising themes one after another through SGAs.
Use improved tools and Modapts to make work easy.
• Choose SGA themes from Key 2 goals and action plans.
Management to support activities by setting numerical goals.

• Tackle WIP reduction through SGA.

Management to support the system to accomplish goals through SGA.

• Improve changeover for SMED through SGA.

Support by managers is required for implementation for zero changeover through SGA.

• Use Modapts to partly improve operations.

Promote action implementation through SGA to improve productivity.

• Achieve zero monitoring through SGA to make multi-machine handling possible.

Management to support action and improvement implementation through SGA for zero monitoring.

• Conduct joint meetings between upstream and downstream groups to improve communication.
Strengthen relationship and co-operation among small groups.
.

• Implement improvement through SGA to eliminate three evils.

Management to support action and Kaizen implementation to prevent recurrence of malfunction through SGA.

• Improve discipline not only of individuals but the whole group.

Establish a system to energise SGA.

• Eliminate root causes and implement Key 11 through SGA.

Strengthen constitution for zero defect and zero claim through SGA.

• Introduce 20 Keys method to suppliers through SGA.

Guide suppliers to improve their technical capability.

• Eliminate root causes of MUDA (waste) through total employee participation.

Eliminate and Kaizen wasteful operations through SGA to improve the work rate.

• Improve the contents of suggestions from, “asking for”, to realisation, through SGA.
Involve all employees to implement their own improvement suggestions.

• Let employees teach skills to one another through SGA.

Support cross training for early accomplishment of complete skills versatility through SGA.

• Discuss and take actions within or between workplaces to secure on-time delivery.
Involve all employees to help improve delivery performance to promised date.

• Choose actions for efficiency control as a theme for SGA and Kaizen.
Post graphs to show progress and effort by groups to promote competition for further improvement.

• Increase computer utilisation rate through SGA.

Promote and improve use of computers through SGA.
• Take actions to conserve energy and materials during operations through SGA.
Organise lectures to conserve energy and materials and support improvement through SGA.

• Develop new technology into site technology and accumulate it.

Turn new technology into site technology through SGA.

44 Facilitator's Manual
Matrix
Better Faster Cheaper

For every Key a workplace Kaizen matrix was developed, indicating:

• Actions that should be taken in the target Key to support the other Keys
Actions that should be taken in the other Keys to support the target Key

Target Key 4 - Reducing Work-in-Process

• Eliminate unnecessary items using rules*. This will create space and order in the workplace.
Clearly allocate and mark all WIP stores and ensure discipline regarding the organisation of these stores.
• WIP rule books should be developed to meet the goals of the organisation.
Create complete awareness of the need to reduce WIP and of the need to follow WIP rules.
• Tackle WIP reduction as a theme in SGAs and develop detailed action plans.
Provide support to SGAs regarding WIP reduction.

• Reduce lot sizes and change set-ups more frequently.

Reduce changeover time to increase flexibility and to allow small-lot production.
• Design and implement the most efficient production system to eliminate excess WIP.
Focus process design on reducing WIP and lead time.
• Produce the exact number of products and improve equipment to prevent defects.
Perform more than one operation to eliminate the need for WIP (e.g. cellular manufacturing).
• Set up stores to serve downstream processes more effectively. Create rule books for store
management.
Utilise stores to reduce WIP between processes.
• Improve equipment reliability through preventive maintenance.
Eliminate the need for buffer inventory in the event of a breakdown.
• Eliminate time wastage through sound application of the WIP rule book principles.
Eliminate absence without notice since this creates bottlenecks and thus excess WIP.
• Decrease the abnormality rate and eliminate buffers created to provide protection against defective
products.
Reduce WIP so that problems caused by even one defect become visible.
• Conduct WIP reduction training with suppliers.
Implement delivery based on demand, instead of batch delivery to reduce WIP.
• Reduce WIP to eliminate waste such as transportation, walking and searching.
Identify the source of unnecessary handling, transportation and walking and take action.
• Create carts to improve transportation efficiency and reduce WIP.
Continuously improve carts, stores and any other areas where WIP is stored, handled or transported.
• Improve skill versatility and combine operations to eliminate the need for WIP.
Create a system of co-operation and flexibility so that absenteeism does not affect WIP management.
• Create a scheduling system that makes it possible to produce what is needed, when needed and
smooth production flow.
Eliminate batch production scheduling.
• Improve efficiency by reducing double handling, transportation and WIP.
Post efficiency graphs to motivate employees and to recognise their efforts.
• Use computers to streamline processes so as to eliminate waiting. Reduce information bottlenecks.
Improve control by narrowing down the production volume.
• Eliminate unnecessary stocks and the wasted energy and material associated with these stocks.
Reduce space available to accommodate excess WIP.
• Introduce new technology for achieving zero WIP.
Integrate processes through the application of new technology.
* Illustrated in Techniques and Tools section.

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Facilitator's Manual Chapter 1: Introduction to the 20 Keys Programme
Revised 08/2001
ORGANISATION DEVELOPMENT
45
INTERNATIONAL
Matrix
Better Faster Cheaper

For every Key a workplace Kaizen matrix was developed, indicating:

• Actions that should be taken in the target Key to support the other Keys
Actions that should be taken in the other Keys to support the target Key

Target Key 5 - Quick Changeover Technology

• Organise files for immediate retrieval, keep tools at the point of use.
Organise jigs and fixtures at the point of use to improve handling.
• Support the improvement process by promoting and enhancing the understanding of QCT.
Select appropriate machines and display a visible sign on each indicating the QCT goal to increase awareness and
motivation.
• The challenge of SMC is achieved through SGA participation.
Provide support to SGAs in implementing actions to eliminate changeovers.
• Reduce batch sizes to increase the number of changeovers and highlight the need to reduce changeover time.
Aim for SMC to eliminate the advantage believed to be in processing longer runs or (larger) batches.

• Vertical Kaizen - eliminate non value-adding set-up time (e.g. external set-up) to improve productivity.
Horizontal Kaizen - reduce set-up time and (associated) man-hours to improve productivity.
• Eliminate monitoring the machine to assist with set-up time improvement on other machines.
Separate internal and external set-up on other (nearby) machines to allow for zero monitoring and multiple machine
handling.
• Improve material flow to increase the number of changeovers and highlight the need to further reduce
changeover time.
Through QCT, lot sizes can be reduced, thereby allowing for the improvement (or reduction) of coupling points.
• Facilitate changeovers through improvement maintenance (machine modifications).
Ensure continuity of machine conditions by eliminating the need for adjustment during changeovers.
• Ensure that work (and set-ups) are completed within scheduled times through employee collaboration.
Reduce excessive talking during changeovers by concentrating on quicker changeover time.
• Prevent changeover related scrap (or spoilage) by eliminating the need for adjustments during changeovers.
Prevent defects through changeover improvements and also making use of operator controlled operation standards
(“tip and senses”).
• Provide suppliers with in-house case studies to promote QCT.
Demonstrate quick changeover at supplier plants.
• Eliminate “searching and walking” wastes during changeover to reduce the changeover time.
Ensure that jigs, fixtures and materials are kept at the point of use to reduce “process / method, searching and
transportation” wastes.
• Review and improve tools, jigs, etc. in-house to make them easier to use.
Creative innovations to tools, jigs, hoists, etc. which are not generally available from equipment suppliers become
necessary and should be made in-house.
• Improve changeovers so that anyone can perform the changeover in the designated time.
Eliminate the need for adjustments during changeovers so that anyone can perform the changeover.
• Visibly display the schedule (“what's next”) so that operators can prepare (externally) for the next job.
Smoothed and stabilised production in small lots becomes possible through SMC.
• Display improvements made to further energise improvement activities.
Set man-hour reduction targets to improve efficiency made possible by QCT.
• Reduce changeover times in indirect divisions through the use of PC's and/or CAD.
Use PC's to retrieve information within one minute.
• Enhance awareness that long set-ups (wasted time) increase yield and material wastes.
QCT reduces the production of defects (scrap) during changeovers, which in turn reduces energy and materials
required.
• Introduce new technology which requires zero set-up.
Improve site technology (in terms of changeovers) through operator controlled operating procedures (SOP's) that
contain “senses, tips, points, etc.”.

46 Facilitator's Manual
Matrix
Better Faster Cheaper

For every Key a workplace Kaizen matrix was developed, indicating:

• Actions that should be taken in the target Key to support the other Keys
Actions that should be taken in the other Keys to support the target Key

Target Key 6 - Kaizen of Operations

• Place everything to minimise unnecessary motion using Modapts.
Eliminate unnatural posture in handling products, jigs and tools.
• Develop operation improvement sheets and schedules to pursue Kaizen activities.
Promote common understanding and commitment to double productivity and establish quantitative targets for
operations.
• Promote competition among groups and support Kaizen through SGAs.
Use Modapts for partial operation Kaizen through SGAs.
• Initiate efficient production systems to eliminate excess WIP.
Reduce lead times by reducing WIP and eliminating wasteful motions in operations.
• Improve non value-adding changeovers to improve productivity.
Increase productivity by reducing changeover time and labour hours.

• Use Kaizen to make multi-machine handling possible for further productivity growth.
Free up operators' hands through standard operating procedures to eliminate unnecessary motions.
• As productivity increases, improvements on “coupling” become necessary.
Clarify operation links and prevent production delays because of waiting.
• Productivity improvement activities make the causes of equipment failure more visible.
Prevent breakdowns and mini-stoppages by eliminating root causes.
• Promote vertical Kaizen so as to start up immediately.
Practise a disciplined work schedule so that work can start and end timeously.
• Eliminate root causes of defects through cause and effect methods to double productivity.
Kaizen to strengthen operations so as not to produce defective products.
• View suppliers as part of the value-adding chain.
Educate suppliers using in-house cases of operation Kaizen to reduce material cost.
• Improve productivity and efficiency to reduce waste.
Promote competition to eliminate wasteful operations during production.
• Encourage employees to continuously make improvements themselves.
Make small tools for operation Kaizen yourself and review those to make further improvements.
• Develop training skills matrices to upgrade the capabilities of all employees.
Prevent productivity loss caused by waiting and absence without notice through cross training.
• Implement effective manufacturing, planning and control systems.
Prevent production loss through proper planning and scheduling.
• Monitor productivity improvements through easily understandable graph techniques.
Use visual management to show efficiency improvements status to energise operation Kaizen activities.
• Purchase and/or develop appropriate software to support efficient operations.
Make full use of NC equipment and computers to improve productivity.
• Prevent unnecessary processing and wastage through Kaizen activities that conserve energy and
material.
Implement energy- and resource-saving improvements as well as time-saving improvements.
• Make employees aware of new technology that will enhance systematic improvements.
Introduce new technology to improve productivity through full-scale Kaizen techniques.

D
Facilitator's Manual Chapter 1: Introduction to the 20 Keys Programme
Revised 08/2001
ORGANISATION DEVELOPMENT
47
INTERNATIONAL
Matrix
Better Faster Cheaper

For every Key a workplace Kaizen matrix was developed, indicating:

• Actions that should be taken in the target Key to support the other Keys
Actions that should be taken in the other Keys to support the target Key

Target Key 7 - Zero Monitor Manufacturing / Production

• Clean up during operations.
Divide and clearly indicate the locations of jigs and tools to eliminate wasteful searching and judgement calls.
• Implement Kaizen to eliminate monitoring of all machines.
Promote a common understanding of the need for zero monitoring and actively support it.
• Actively support implementation of Kaizen methods for zero monitoring through SGAs.
Make multi-machine handling possible through SGAs.
• Enable operators to do two things at the same time so as to eliminate excess inventory.
Improve equipment to prevent defects and to make products in exact quantities required.
• Eliminate monitoring through continuous improvement so that operators can prepare for the next set-up.
Zero monitoring enables operators to perform internal and external set-ups of other machines.
• Free operators' hands through better capacity utilisation and more efficient operations.
Kaizen to make multi-machine handling possible for further growth of productivity.

• Enable operators to push and pull materials themselves by improving zero monitoring capabilities.
Eliminate waiting between operations by physical store allocations so as to make the next operation more visible.
• Perform preventive maintenance while the machine is running.
Kaizen maintenance so operators can perform other work while machines are running.
• Consume full operational capacity through effective procedures that minimise non value-adding
activities.
Enhance awareness so that any waiting time available is effectively substituted for value-adding activities.
• Continuously improve to stabilise quality through zero monitoring.
Continuously improve to strengthen the organisational constitution so as to prevent defects occurring and to
make monitoring unnecessary.
• Educate suppliers about the waste of monitoring and how to reduce it.
Educate suppliers about zero monitoring, using internal case studies.
• Reduce waste by eliminating monitoring and repetitive judgement calls.
Dig out waste to eliminate root causes of monitoring and take corrective actions.
• Complete implementation strategies for zero monitoring.
Establish systems to eliminate defects from occurring in zero monitor manufacturing.
• Enable operators to perform more than one task simultaneously through cross training.
Continuously improve to make multi-machine handling possible with completely multi-skilled operators.
• Smooth out operations so that more than one task can be performed simultaneously utilising zero
monitoring techniques.
Ensure operators avoid the waste of waiting through effective planning and control.
• Use visual management to publicise efforts made.
Set targets for zero monitoring and use visual management to show effort and progress.
• Use computers to eliminate monitoring.
Implement unmanned operations after work hours.
• Perform more than one task simultaneously to reduce waste.
Eliminate root causes of defects that occur even with monitoring.
• Accumulate know-how for zero monitoring as site technology.
Introduce new technology for zero monitoring.

48 Facilitator's Manual
Matrix
Better Faster Cheaper

For every Key a workplace Kaizen matrix was developed, indicating:

• Actions that should be taken in the target Key to support the other Keys
Actions that should be taken in the other Keys to support the target Key

Target Key 8 - Coupled Manufacturing / Production

• Improve relationships between workplaces to enable “teamworking style” goal alignment.
Mark the store area with pink tape to allow easy identification of excess WIP

• Establish small groups to accomplish goals and to improve relationships.

Support good relationships between workplaces.

• Reduce WIP by utilising “stores” effectively through control boards.

Improve relationships and linkages through joint meetings between upstream and downstream processes

• Improve material flow and increase the frequency of set-up changes.

Set up “stores” and use rule books to assist downstream processes.

• Make the next job clear to prevent production loss caused by waiting.
Reduce lot size through set-up reduction.

• Eliminate waiting between jobs by indicating the next job through the use of stores.
As productivity increases, improvement in linkages becomes necessary.

• Completely implement zero monitoring to allow smooth coupling

Make it possible for the operators to push and pull materials through zero monitoring.

• Enhance PM so downstream processes function smoothly.

Improve reliability of coupling points by eliminating equipment failure and mini-stoppages.

• Make “coupling points” clear to prevent confusion.

Ensure adherence to “store” rules by creating a workplace that fully complies with these rules.
• Use internal cases to educate suppliers about coupling methods.
Eliminate space required for defects by improving quality.

• Eliminate “searching” and “walking” by making material flow smoothly.

Promote good relationships with suppliers through training, thus, preventing delays and shortages.
• Improve carriers and control boards to make them easier to use and eliminate waste.
Dig out root causes of “walking” and “searching” to improve linkages.
• Clearly indicate rules for “coupling” points.
Let employees make their own 20 Keys carriers to improve workflow.

• Improve skill versatility through smooth linkage between the processes.

Make collaboration possible through cross training, thus, enabling smooth functioning.

• Promote improvement of linkages between processes to make one-piece flow possible.

Use control boards to ensure material availability through an automatic “nervous” system.
• Make “coupling points” clear to prevent confusion.
Enable operators to monitor output.
• Use computers for high speed communication throughout processes.
Use personal computers for instant communication at point of production.
• Eliminate waste by keeping “coupling points” defect free, thereby preventing overproduction.
Prevent stagnation through actions to prevent defects and overproduction
• Accumulate know-how on “coupled manufacturing” and utilise it when introducing new technology.
Develop technology for automatic and high speed communication.

D
Facilitator's Manual Chapter 1: Introduction to the 20 Keys Programme
Revised 08/2001
ORGANISATION DEVELOPMENT
49
INTERNATIONAL
Matrix
Better Faster Cheaper

For every Key a workplace Kaizen matrix was developed, indicating:

• Actions that should be taken in the target Key to support the other Keys
Actions that should be taken in the other Keys to support the target Key

Target Key 9 - Maintaining Machines and Equipment

• Conduct PM including the elimination of the three evils and remove dirt from equipment.
Eliminate dirt from equipment to make it possible to identify any abnormality immediately.
• Promote Kaizen and control to prevent recurrence of problems and eliminate the three evils.
Indicate losses caused by equipment failure to enhance understanding of the need of PM.
• Support action implementation and Kaizen to prevent recurrence of problems.
Implement Kaizen to eliminate the three evils through SGA..
• Prevent abrupt breakdown to make excess stock unnecessary.
Implement complete PM and eliminate extra stock in case of equipment breakdown.
• Make changeover easy by making it simple to use equipment through Kaizen and maintenance.
Make it possible to reproduce the best conditions without adjustments during changeover.
• Prevent trouble and mini-stoppages and eliminate root causes.
Make causes of equipment trouble visible by improving productivity.
• Promote Kaizen and maintenance to make it possible for operators to perform two tasks
simultaneously.
Conduct PM while the machine is running instead of monitoring the machine.
• Improve reliability of control board, preventing breakdown and mini-stoppage.
Implement complete PM to enable “store” to fully serve its function.

• Prevent breakdown so that operators can work for a full workday without worrying.
Promote PM by enhancing discipline to stick to the rules.
• Prevent abrupt breakdown and misoperation to eliminate defects.
Dig out root causes of defects and conduct equipment Kaizen to prevent recurrence.
• Use in-house cases to educate suppliers about the elimination of the three evils and Kaizen of maintenance.
Educate suppliers about the elimination of the three evils to reduce breakdown completely.
• Reduce breakdown and waste that occurs during repairs.
Make waste of breakdown visible through “Treasure Mountain”.
• Eliminate the three evils and conduct Kaizen of maintenance to make PM easier.
Let employees make their own maintenance tools to facilitate maintenance.
• Make it possible for anyone to run equipment without relying on operator's “sense” and “tips”.
Enable operators to perform maintenance checks themselves through cross training.
• Improve the reliability of control board by completely preventing troubles and mini-stoppages.
Schedule periodical PM before problems occur.
• Improve efficiency by completely preventing troubles and mini-stoppages through Kaizen.
Post the number of breakdowns and stoppage times to motivate employees to improve.
• Utilise personal computers and sensors to Kaizen equipment.
Enable operators to perform maintenance checks of equipment, using microprocessors.
• Conserve energy and resources by preventing misoperation.
Prevent waste of energy and resources caused by oil or air leaks.
• Introduce new technology to improve equipment reliability.
Improve site technology relating to maintenance and check.

50 Facilitator's Manual
Matrix
Better Faster Cheaper

For every Key a workplace Kaizen matrix was developed, indicating:

• Actions that should be taken in the target Key to support the other Keys
Actions that should be taken in the other Keys to support the target Key

Target Key 10 - Workplace Discipline

• Work for full work hours and prepare for the next day before leaving.
Keep cleaning equipment at hand to clean up dirt as soon as it occurs.
• Enhance communication with management through frequent brief meetings.
Let managers lead and support improvement activity with regard to this Key. They set an example.
• Confirm participative system to energise SGA.
Improve individual and group discipline/commitment by making it a SGA theme.
• Prevent absence without notice and leaving work early to prevent production of excess stocks.
Eliminate unnecessary WIP and eliminate unnecessary meetings. Maintain rules.
• Adhere to changeover schedule to conduct changeover in less than 10 minutes.
Reduction of set-up time automatically reduces idle talk during the changeover.
• Promote complete discipline for zero minute start, to perform actual work for full work hours.
Establish zero minute start through vertical Kaizen following an improvement plan.
• Enhance awareness to fill every “waiting” with actual work.
Communicate assignments with operators to eliminate waiting to perform actual work, for full work hours.
• Promote discipline to keep all the coupling rules, especially “store” related rules.
Maintain smooth links not to cause inconvenience to upstream and downstream processes.
• Promote discipline to keep all the rules, especially PM related rules.
Prevent equipment breakdown to enable operators to perform actual work all day.

• Promote discipline for adherence to operating procedures to prevent defects caused by human
error.
Reduce defects to reduce the need for meetings and talk about counter measures.
• Employees greet and interact with their suppliers in a friendly manner.
Demonstrate internal discipline to suppliers as an example to them.
• Promote complete discipline rules to follow like, indication of whereabouts when leaving the
workplace.
Use “Treasure Mountain” to find root causes of discussions or long meetings and take action.
• Improve discipline to make every motion a habit and review it for improvement.
Make work assignment boards to indicate programmes or whereabouts of employees.
• Promote discipline for co-operation and collaboration through cross training.
Establish culture of co-operation and harmony by cross training.
• Make it possible to meet schedule by preventing absence without notice or leaving work early.
Determine and display clear sequences of operations to reduce the need for discussions during production.
• Improve efficiency through developing discipline rules and procedures to follow.
Boost motivation by displaying efficiency graphs and ensuring good work rules.
• Make on-line processing possible through a complete report on the status of a job.
Use computers to manage efficiency and speed up clerical work.
• Eliminate long telephone conversation to reduce cost.
Make it a habit to conserve energy and resources.
• Study new technology.
Improve competence and autonomous activity through self development and skill versatility.

D
Facilitator's Manual Chapter 1: Introduction to the 20 Keys Programme
Revised 08/2001
ORGANISATION DEVELOPMENT
51
INTERNATIONAL
Matrix
Better Faster Cheaper

For every Key a workplace Kaizen matrix was developed, indicating:

• Actions that should be taken in the target Key to support the other Keys
Actions that should be taken in the other Keys to support the target Key

Target Key 11 - Quality Assurance

• Post action rules, detailing actions to be taken immediately after defects.
Keep measuring equipment at hand to identify defect immediately and display quality samples.

• Implement poka-yoke for root causes, thereby establishing the constitution for zero defects.
Clarify defect criteria and set numerical goals

• Use SGAs to support the constitution for zero claim and zero defect.
Design and implement poka-yoke to eliminate root causes through SGA.

• Eliminate emergency stocks, built up to provide protection against defects, by eliminating root causes.
Reduce WIP to make the first defect produced, visible.
.

• Eliminate adjustment to prevent scrap, following changeovers.

Prevent defects through improved changeovers that requires operator involvement.

• Kaizen to establish a constitution that totally eliminates defects.

Take action against root causes through actions designed to double productivity.

• Eliminate the need of monitoring by preventing defects.

Stabilise quality even with zero monitoring.

• Eliminate space for accommodating defects between processes.

Make “coupling points” clear to eliminate problems caused by lack of coordination.

• Eliminate root causes of defects and conduct equipment improvements.

Prevent defects caused by breakdowns.

• Reduce defects to reduce the time spent on action meetings and non value-added discussion.
Establish zero minute start up discipline to prevent defects caused by mental factors.

• Educate suppliers to prevent recurrence of problems by using in-house cases.

Train suppliers in poka-yoke and provide support every time a defect is detected.
• Complete prevention of defects reduces waste.
“Dig out” waste caused by defects (e.g. walking, discussions, etc.) by eliminating defects.
• Review processes and Kaizen to build a constitution that does not allow defects to occur.
Allow employees to make poke-yoke devices to eliminate defects.
• Kaizen defect related factors to make cross training easier.
Improve skill levels to reduce defects.
• Prevent shortages caused by defects to enable on-time delivery.
Use clear schedules to prevent emergencies that destabilize operations and cause panic.
• Improve efficiency through the complete prevention of defects that cause waste.
Post graphs to show the impact of efforts made, this will enhance the drive for zero defects
• Use computers to establish a constitution for zero defects
Use computers to automate measuring processes and prevent human error.
• Reduce excessive use of energy and resources by preventing defects.
Take complete action against defects to save energy and resources.
• Develop new technology for zero defects
Introduce new technology for measurement and quality control for zero defects

52 Facilitator's Manual
Matrix
Better Faster Cheaper

For every Key a workplace Kaizen matrix was developed, indicating:

• Actions that should be taken in the target Key to support the other Keys
Actions that should be taken in the other Keys to support the target Key

Target Key 12 - Developing your Suppliers

• Instruct suppliers to alter their delivery method to serve downstream process better.
Educate suppliers about Key 1, to make the job easy using case studies.
• Provide guidance to suppliers in terms of defining and achieving goals for the benefit of the supplier chain.
Clarify and educate your suppliers in terms of your strategy and targets to improve your 20 Keys score contained in
your basic policy.
• Enhance workplace improvement and actions of suppliers through small group activities with their
employees Supplier Development Teams (SDT's).
Educate suppliers about the 20 Keys, using their small group activities to conduct the training.
• Reduce delivery batch sizes and increase frequency of deliveries to reduce WIP.
Conduct the same WIP reduction training with suppliers as was done in-house.
• Educate suppliers on how to improve changeovers using in-house case study examples.
Organise a “Set-up Demonstration” for suppliers as well as for in-house employees.
• Educate suppliers on the operation improvement method using in-house case studies to reduce material cost.
Educate suppliers on how to use improvement sheets and schedules.
• Educate suppliers on zero monitoring using in-house case studies.
Educate suppliers on how to promote Kaizen, using zero monitoring approaches.
• Strengthen supplier relationships through training to completely prevent delays and shortages.
Promote coupling rules by educating on concepts of “store”, “control board”, “lodge”, “seats”, etc. using in-house
case studies.
• Ensure supplier awareness of the three evil elimination to reduce breakdowns as a whole.
Educate suppliers on techniques to eliminate the three evils and promote Kaizen maintenance using in-house case
studies.
• Provide suppliers with models or excellent examples of workplace discipline to set the standard for a
good customer-supplier relationship.
Create a pleasant working atmosphere by cheerful greetings to suppliers and colleagues, which also facilitates
training.
• Conduct training and support to promote poka-yoke every time a defect appears.
Educate suppliers on the use of poka-yoke to prevent recurrence of defects, using in-house case studies.

• Educate suppliers on the waste elimination approach using in-house case studies.
Explain the concept of waste to suppliers to enhance awareness to eliminate it.
• Show suppliers examples of carts or jigs made in Kaizen corners.
Enhance supplier awareness as to the results and benefits that are achievable without spending large amounts of
money.
• Educate suppliers about skill versatility through in-house case studies.
Make it possible for employees to communicate with suppliers even when the responsible person is not available.
• Educate suppliers about visual scheduling systems (control boards) using in-house examples.
Strengthen, support, simplify and smooth out internal operations and help suppliers to do the same.
• Apply internal efficiency measures to your suppliers to improve the supplier chain as a whole.
Highlight the importance of visually displaying efficiency performance to your suppliers.
• Implement real-time/on-line communication systems between your company and its suppliers.
Provide suppliers with training involving the use of computers in the Kaizen process.
• Encourage suppliers to save energy and materials to reduce the wasteful cost of these to the supplier chain.
Provide examples of improvements in energy and material savings to enhance awareness.
• Provide training and support to suppliers about the successful adoption or introduction of new technology.
Share site technology with suppliers whenever and wherever possible.

D
Facilitator's Manual Chapter 1: Introduction to the 20 Keys Programme
Revised 08/2001
ORGANISATION DEVELOPMENT
53
INTERNATIONAL
Matrix
Better Faster Cheaper

For every Key a workplace Kaizen matrix was developed, indicating:

• Actions that should be taken in the target Key to support the other Keys
Actions that should be taken in the other Keys to support the target Key

Target Key 13 - Eliminating Waste

• Eliminate wasteful motion in handling materials through the treasure map.
Divide and clearly mark areas and keep everything at the point of use to eliminate searching.
• Improve actual work rate through complete actions to eliminate waste.
Enhance complete understanding of waste.
• Support Kaizen action implementation to eliminate waste and improve actual work rate through SGA.
Dig out root causes of waste by total employee participation and take actions.
• Dig out root causes of handling, transportation and walking and take corrective actions.
Reduce WIP to eliminate waste of “transportation”, “walking” and “searching”.
• Try and reduce set-up changeover time through Kaizen to eliminate searching and walking.
Keep tools and materials at hand to reduce “walking”, “searching” and “transportation”.
• Promote group competition to get rid of waste during operations.
Dig out treasure map to further improve productivity.
• Dig out “treasures” to take complete actions against root causes of monitoring.
Use treasure map to eliminate judgement calls during operation.
• Improve “coupling points” through eliminating root causes of “walking” and “searching”.
Establish smooth flow of materials to eliminate “walking” and “searching”.
• Bring waste caused by equipment failure to the surface through the treasure map.
Reduce waste caused by repair work through the reduction of equipment failure.
• Find causes of long discussions through the treasure map and take corrective action.
Establish discipline to keep rules such as, indicating destination, when leaving workplace.
• Dig out defects that causes walking and discussions and take corrective action.
Prevent defects completely to eliminate waste of taking actions.
• Explain what waste is to suppliers and let them understand the need to eliminate it.
Educate suppliers on how to eliminate waste using in-house case studies.

• Kaizen the problems dug out through the treasure map in a short period of time.
Review and Kaizen actions taken through the treasure map for further effects.
• Promote skill versatility by digging out waste caused by unbalanced operation.
Eliminate waste of waiting through cross training.
• Eliminate wasteful motions and transportation to keep production on schedule.
Smooth out operation through control board to eliminate waste of waiting.
• Try to completely eliminate waste by digging out “treasures”.
Visually display graphs on targets and progress to eliminate waste an enhance motivation for achievement.
• Use e-mail / computers to eliminate the need to leave the workplace or walking to communicate.
Use personal computers to process data and supply detailed analysed data.
• Dig out the causes of wasted time and get rid of them through the treasure map.
Reduce cutting chips, etc. by improving yield through conservation of energy and materials.

• Introduce new technology for unmanned operation by completing wasteless motions.

Eliminate waste during operation through well refined site technology.

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Matrix
Better Faster Cheaper

For every Key a workplace Kaizen matrix was developed, indicating:

• Actions that should be taken in the target Key to support the other Keys
Actions that should be taken in the other Keys to support the target Key

Target Key 14 - Empowering Employees to Make Improvements

• Review and Kaizen tool racks and shelves to make it easier to use and to make the place look neat.
Place tool racks and shelves in sizes that are suitable to the workplace.
• Let employees create Kaizen themselves using Kaizen workshops.
Give guidance and support to employees to let them implement their Kaizen themselves.
• Involve all employees to implement Kaizen suggestions.
Kaizen the contents of suggestions to change them from “asking for this and that kind” to “we can
implement that kind”.
• Reduce WIP by improving transportation efficiency through 20 Keys carts, etc.
Review and Kaizen “carts” and “stores”, etc. by reducing WIP.
• Modify changeover tools to make it easier to use.
Create tools that are required for quick changeover but are not available in the market.
• Let employees make their own Kaizen tools and review and Kaizen those further.
Improve productivity by implementing Kaizen suggestions immediately.
• Establish system to completely prevent defects, even without monitoring.
Review and Kaizen actions for zero monitoring.
• Smooth the flow by self-made 20 Keys carts, etc.
Review and Kaizen control boards to make it easier to use.
• Let artisans make maintenance tools themselves for easier maintenance.
Conduct Kaizen maintenance to make PM easy by eliminating the three evils.
• Make a notice board indicating destination when leaving the workplace to improve discipline.
Review and Kaizen motions to improve discipline. Make good motions a habit.
• Make mistake-proof devices yourself to eliminate defects.
Review and Kaizen your production constitution to prevent defects.
• Educate suppliers about Kaizen workshops, as a method of Kaizen, with little money.
Use a cart made in a Kaizen workshop as an example to teach suppliers.
• Review Kaizen treasure map actions to make further improvements.
Kaizen “treasures” yourself.

• Make it possible for anyone to use the Kaizen workshop.

Improve autonomous Kaizen skills through cross training.
• Review and Kaizen the tools, like control boards, to make it easier to use.
Build an easy to understand visual production control system yourself.
• Implement Kaizen immediately by yourself to improve production.
Post graphs showing progress to motivate employees to Kaizen operations.
• Use micro-processors and sensors for your own Kaizen of equipment.
Develop easy-to-use software to improve utilisation rate of computers.
• Accumulate small Kaizen ideas to conserve energy and resources.
Implement Kaizen ideas to conserve energy and resources yourself.
• Document accumulated know-how, developed through autonomous Kaizen, as site technology.
Kaizen new technology, making it easier to use after introduction.

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Matrix
Better Faster Cheaper

For every Key a workplace Kaizen matrix was developed, indicating:

• Actions that should be taken in the target Key to support the other Keys
Actions that should be taken in the other Keys to support the target Key

Target Key 15 - Skill Versatility and Cross Training

• Develop a system to enable anyone to return tools to the original place.
Divide and mark the area to indicate clearly where tools and work standards are for easy access.
• Implement cross training, using a skills development chart.
Enhance understanding of the need of skill versatility and support it.
• Support early completion of cross training within groups through SGA.
Let employees teach each other skills through SGA.
• Reduce excess stock/WIP resulting from absenteeism through Key 15.
Improve teamwork by eliminating emergency stock.
• Reduce set-up time by enabling everyone to perform changeover in the same time standard.
Make changeovers adjustment-free to enable anyone to perform them.
• Prevent production drop, caused by waiting and wasteful motions,through skill versatility.
Eliminate wasteful motions to simplify operation.
• Promote continuous improvement to make multi-machine handling possible through skill
versatility.
Let employees perform other tasks while machine is running, using a “skills development chart”.
• Involve people in defining coupling points that are easy to understand and maintain.
Clarify rules of “coupling points” for multi-direction material flow.
• Make autonomous maintenance possible through skill versatility.
Make reliance on “sense and tips” unnecessary to enable anyone to operate the machine.
• Develop culture of participation, to create discipline with commitment, through skill versatility.
Promote skill versatility through commitment and a positive work atmosphere to help each other.
• Improve skill levels through cross training to reduce defects.
Make it easy to cross train operators by eliminating root causes of defect.
• Make communication with suppliers possible even when responsible person is unavailable.
Use in-house case examples to educate suppliers on cross training.
• Eliminate the waste of waiting through skill versatility.
Promote skill versatility by digging out waste caused by unbalanced operation.
• Improve autonomous Kaizen ability through cross training.
Improve autonomous Kaizen skills to enable everyone to use the Kaizen corner.

• Secure on-time delivery by balancing the work load.

Teach process control as a means to pace operation.
• Improve efficiency by improving skill levels of the group through cross training.
Post graphs to show progress to enhance motivation towards skill versatility.
• Make it possible for all employees to use computers.
Use micro-processors to eliminate the need of “sense” and “tips” to operate equipment easily.
• Save energy and materials by eliminating human errors through skill development.
Improve skills, to take actions to save energy and materials.
• Accumulate further developed site technology through cross training.
Introduce newly developed equipment that is easy for anyone to operate to make cross training easy.

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Matrix
Better Faster Cheaper

For every Key a workplace Kaizen matrix was developed, indicating:

• Actions that should be taken in the target Key to support the other Keys
Actions that should be taken in the other Keys to support the target Key

Target Key 16 - Production Scheduling

• Run production on schedule, using control boards and place WIP in designated areas
Visualise production status by dividing and marking storage areas and eliminate unnecessary objects

• Improve delivery performance by smoothing operations through the use of control boards, etc.
Ensure commitment to on-time delivery by promoting understanding of promised delivery dates

• Involve all employees to improve delivery performance

Discuss and take actions to meet on-time delivery

• Smooth production quantity by eliminating ups and downs caused by batch production.
Make it possible to make what is needed, when needed, to smooth production.

• Display clearly the next job on control boards for external set-up.
Stabilise production for small lots through SMED.

• Avoid reduced production through clear job instructions.

Reduce lead time through operation Kaizen to make rush orders possible.

• Eliminate waiting through visual control boards.

Smooth operations by doing other tasks during machine runs, through zero monitoring.

• Control materials by using control boards.

Improve the reliability of control boards by ensuring smooth “coupling”.
• Conduct periodical PM to improve equipment reliability.
Improve the reliability of control boards by eliminating equipment downtime.
• Use one-page standards to reduce discussions during production flow.
Ensure schedule achievement by preventing absence without notices and early leaving.
• Stabilise awareness by pacing operations through daily production control meetings.
Prevent shortage caused by defects.
• Smooth out internal operation and make it possible to smooth out suppliers' operations.
Educate suppliers regarding the use of visual control boards.

• Smooth out operations using control boards and thereby eliminating the waste of waiting.
Eliminate wasteful motions.
• Ensure that the production control system is simple enough for operators to monitor production.
Review and Kaizen control boards to make them user-friendly.
• Teach production control as a means to pace and level production.
Secure on-time delivery by improving everyone's skills.

• Improve efficiency by implementing production control to work out manpower requirements.

Post graphs to show progress and to enhance motivation.
• Use computers for high speed information processing relating to production control.
Speed up production control through POP.
• Make inventories unnecessary through on-time delivery to conserve energy and resources.
Prevent over-production to save energy and materials.
• Utilise know-how on production control at the time of new production control introduction.
Introduce and improve production control techniques through personal computers.

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Matrix
Better Faster Cheaper

For every Key a workplace Kaizen matrix was developed, indicating:

• Actions that should be taken in the target Key to support the other Keys
Actions that should be taken in the other Keys to support the target Key

Target Key 17 - Efficiency Control

• Graphically display progress in cleaning and organising to foster and promote competition.
Display graphs in the most visible areas to foster interest.
• Graphically display efforts made towards given goals for recognition.
Always talk to employees to recognise their efforts and to motivate them to accomplish goals.
• Use visual management to accelerate progress through group competitions.
Select themes relating to efficiency improvement and make improvements through SGAs.
• Use visual management to promote motivation for WIP reduction.
Improve efficiency by reducing handling and transportation through WIP reduction.
• Use visual management to energise set-up time reduction activities.
Improve efficiency by reducing set-up time.
• Graphically display the progress of efficiency control so as to energise operation Kaizen activities.
Improve efficiency through group competitions in order to improve productivity.
• Set target time for zero monitoring and graphically display progress.
Visually display efforts made for zero monitoring to give recognition.
• Create flow to enable monitoring of production output so as to improve efficiency.
Kaizen for smooth “coupling” to make single-lot production possible.

• Display the number of breakdowns and downtime to enhance motivation to continually improve.
Improve efficiency by completely preventing breakdowns and mini-stoppages.
• Use visual management to energise activities so as to improve discipline.
Improve reliability for efficiency by strict adherence to procedures.
• Use visual management to enhance motivation for zero defects.
Improve efficiency by completely preventing defects that cause waste in all the Keys.
• Teach suppliers the importance of maintaining efforts and progress.
Apply similar efficiency methods at suppliers to strengthen the value chain.
• Visually display targets and efforts made to enhance motivation.
Eliminate waste completely.
• Use visual management to promote operation Kaizen.
Let employees implement improvement ideas immediately to improve efficiency.
• Use visual management to enhance motivation for skill versatility.
Improve efficiency by improving skill levels of groups through cross training.
• Use visual management to enhance motivation to improve delivery performance.
Try to improve efficiency by proper manning and production control.

• Use personal computers to calculate the progress of efforts made.

Use personal computers for office Kaizen to improve efficiency.

• Use visual management to energise activities to conserve energy and materials.

Improve efficiency by making improvements related to conserving energy and materials.
• Use the results and what has been learnt from efficiency control to estimate economic utilisation of
new equipment.
Introduce new technology to break through the status-quo to improve efficiency.

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Matrix
Better Faster Cheaper

For every Key a workplace Kaizen matrix was developed, indicating:

• Actions that should be taken in the target Key to support the other Keys
Actions that should be taken in the other Keys to support the target Key

Target Key 18 - Using Information Systems

• Use a computer system to make it easy to control and optimise storage of materials to facilitate retrieval
without it being cumbersome
Divide, assign and demarcate workplace areas to facilitate the use of computers.
• Use computers to store, process and update information relating to QCDSM goals, 20 Keys and other business
information.
Create the necessary awareness and understanding of micro-processors for data processing and fully support its
introduction.
• Obtain suggestions from SGAs to improve (Kaizen) the use of micro-processing.
Promote and introduce micro-processors through SGA involvement and commitment.
• Use computers to speed up information processing and reduce waiting delays.
The required level of process control is improved by ensuring that each process only produces what it is supposed to
provide and when it is required.
• Use computers (and CAD) to reduce set-up time.
Use computers to file information for easy one minute retrieval of data.
• Optimise the use of current NC, CNC or other micro-processor-based equipment to improve productivity.
Use micro-processors or computers to improve (plan) the productivity of shared equipment for the benefit of the system.
• Promote the use of NC or CNC to implement unmonitored operations after working hours.
Use micro-processors or computers to improve or optimise processes for the successful adoption of zero monitoring.
• Implement real-time communication systems between processes using OA, FA and POP systems.
Use micro-processors to optimise and speed up the coupling system.
• Ensure that employees can easily check and maintain micro-processor-based equipment.
Promote the use of micro-processors and sensors when going about the process of equipment improvement maintenance.
• Workplace discipline and attendance monitoring information is processed faster using computers.
Ensure that job start and job end times are recorded precisely, to facilitate the use of real-time (on-line) processing.
• Implement automatic inspection (or measuring) devices to completely prevent errors.
Use micro-processors to facilitate the improvement process to achieve zero defects.
• Assist suppliers in promoting the use of micro-processors and promote / using micro-processors.
Implement high speed on-line “coupling” with suppliers.
• Use computers to provide detailed analyses of processes.
Use computers to communicate electronically and reduce the need for physical movements (i.e. leaving one's desk and
walking)
• In-house tailoring and adaptation of software to improve the computer utilisation rate.
Promote the use of micro-processor and sensors for employees to improve equipment themselves.
• Eliminate the need for detailed skill and experience (“senses and tips”) through the use of micro-processors,
making the operation easy to learn and conduct.
Train and develop all employees to operate equipment with micro-processors.
• Enhance production control by speeding up the retrieval and updating of information through OA, FA, POP, etc.
Use computers for high speed processing of production control information.
• Use computers to improve office efficiency.
Use computers to facilitate and speed up the process of calculating and displaying efficiency levels.

• Use OA equipment to reduce costs.

Promote the use of computers (or micro-processors) to conserve energy and materials.
• Enhance the development of new technology by promoting and energising the use of micro-processors.
Enhance the knowledge of micro-processor through the introduction of new technology such as robots.

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Matrix
Better Faster Cheaper

For every Key a workplace Kaizen matrix was developed, indicating:

• Actions that should be taken in the target Key to support the other Keys
Actions that should be taken in the other Keys to support the target Key

Target Key 19 - Conserving Energy and Materials

• Place everything at the point of use in the most ergonomic way to eliminate wasteful motions.
Eliminate unnecessary items to reduce wasteful use of space.
• Work out actions against visible and invisible waste to accomplish goals.
Enhance awareness of the importance of conserving energy and resources and support actions.
• Conduct lectures about conserving energy and materials and support continuous improvement
initiatives through SGAs.
Take actions against the problems related to energy and resource savings through SGAs.
• Minimise space to eliminate excess WIP.
Eliminate wasteful use of energy and resources by eliminating unnecessary inventories.
• Enhance awareness of time loss and reduce set-up time.
Make conserving energy and materials possible through zero scrap changeovers.
• Continuously improve the use of energy and materials as well as making improvements to reduce
lead time.
Prevent wasteful use of energy and resources through continuous improvement.
• Eliminate root causes of defects that occur, even with monitoring.
Perform tasks while machine is running to reduce time wastage.
• Completely prevent delays and stagnation because of defects and overproduction.
Eliminate defects and resource wastage by completely preventing defects caused by improper operation.
• Take actions against loss of energy and resources due to oil and air leakages.
Promote conserving energy and resources by completely preventing defects caused by improper operations.
• Take appropriate actions to conserve energy and materials at your workstation.
Reduce cost by limiting non-productive activities.
• Prevent defects to conserve energy and materials.
Eliminate wasteful use of energy and materials by eliminating defects.
• Use Kaizen case studies to enhance awareness of the importance of conserving energy and
materials.
Prevent wasteful use of material by taking actions for conserving energy and materials at suppliers.
• Improve material yield so as to reduce the need to clean cutting chips.
Identify waste of time and take appropriate actions.
• Let employees implement improvement ideas to conserve energy and resources.
Accumulate small improvements to reduce wasteful use of energy and resources.
• Improve skill levels to prevent waste of energy and resources.
Improve skill levels to completely prevent human-related defects and to save energy and materials.
• Secure on-time delivery by preventing overproduction in order to save energy and materials.
Eliminate inventories through on-time delivery so as to save energy and resources.
• Improve efficiency by implementing improvements related to conserving energy and resources.
Use visual management to vitalise activities to conserve energy and resources.
• Use micro-processors to more efficiently utilise energy.
Eliminate wasteful cost through office automation.

• Accumulate know-how, developed through activities, to conserve energy and resources as site
technology.
Study and promote new technology to enable you to conserve energy and resources.

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Matrix
Better Faster Cheaper

For every Key a workplace Kaizen matrix was developed, indicating:

• Actions that should be taken in the target Key to support the other Keys
Actions that should be taken in the other Keys to support the target Key

Target Key 20 - Leading Technology / Site Technology

• Introduce new technology to reduce processing time and make operation easier.
Visually display skill matrices throughout the organisation to promote skill development.

• Introduce new technology for survival and develop it into site technology.
Introduce new technology and support activity to turn it into first-class site technology.

• Make new technology into site technology through SGA.

Refine new technology to improve it to site technology.

• Integrate processes through new technology to reduce WIP.

Introduce new technology for zero WIP through one-piece flow.

• Introduce new technology for zero changeover.

Accumulate and document “sense tips” and key points for set-up change as site technology.

• Improve productivity through complete Kaizen, utilising new technology.

Develop and refine technology to improve productivity.

• Introduce new technology for zero defects.

Accumulate know-how for zero monitoring as site technology.

• Develop new technology to transmit information rapidly and automatically.

Accumulate know-how for “coupling” to utilise it when introducing new technology.

• Improve site technology related to advanced maintenance systems.

Introduce new technology to improve equipment reliability.

• Let operators develop their own skills and ability through skill development.
Initiate study on new technology through operator self-development.
• Introduce new technology for quality control to completely prevent defects.
Develop new technology for zero defects.
• Teach site technology (which is not commercially confidential) to suppliers.
Provide guidance and support for the introduction of new technology at suppliers.

• Eliminate waste during operations by developing site technology.

Introduce new technology for unmanned operation through complete elimination of wasteful motions.
• Kaizen new technology further to make it easier to use.
Accumulate know-how developed through autonomous Kaizen as site technology.
• Make skill versatility easier by introducing new equipment for anyone to use.
Accumulate higher level and refined site technology through skill versatility.
• Introduce and Kaizen production control through computerised technology.
Utilise know-how of production control when introducing new control system.
• Create production systems to break through the status quo with new technology.
Utilise experience with efficiency control to work out the profitability of new equipment.
• Introduce new technology like robots and enhance the knowledge of micro-processors.
Vitalise the use of micro-processors to develop new technology.
• Study methods to conserve energy and resources through new technology.
Accumulate know-how to conserve energy and resources into a site technology.

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1.9 The fundamentals of the 20 Keys
There are a couple of fundamental principles which underline the 20 Keys. It is important to highlight these
in order to understand the philosophy and the approach of the system. If one understands the underlying
principles, one will also be able to solve implementation issues easier because you would be able to go back
to think about what the underlying principle is, rather than to keep on looking for a specific answer.

1.9.1 Eliminating waste in all its forms

"Our earnest advice to lean firms today is simple: to hell with your competitors; compete against
perfection by identifying all activities that are muda (waste) and eliminating it…..this approach has kept
Toyota in the lead for more than 40 years……However, you must master the key techniques for
eliminating muda…"
James P. Womack and Daniel T. Jones, Lean Thinking

The above quote sums up our first 20 Keys fundamental - to eliminate anything that does not add value
to the customer. By doing this, we will be able to become proactive, rather than just playing catch-up
with the rest of the industry. By competing with perfection - an environment where no time, money,
effort, material, energy is wasted - we'll always have a reason to improve. Refer to section 1.7 to see
how “lean” and “20 Keys” interact.

1.9.2 Empowerment

We have mentioned before that everyone will have to change and grow in their roles and
responsibilities as the organisation matures and the environment changes. The best way in which to
make sure that we are able to do this is to get the right people accountable for the right jobs. And this
means that we will have to actively empower people - to take responsibility for tasks and jobs, to take
initiative and to innovate. Without this we will not be able to free ourselves up enough to look ahead
to the future, and for us to actually make a plan to get there!

Another reason for empowerment as a fundamental to the 20 Keys is that we want to make use of the
total intellect of the workforce.

Often, companies duplicate responsibility by the way in which they managed people and processes.
They take away the expectation of people to participate in decision making and improvement. For this
reason, the 20 Keys will need us to adopt an empowerment approach through training, involvement
and participation.

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But how does on actually do this?

Below is a model for empowerment, which we will encounter again in the Keys.

Ownership
Ownership
Support
Ownership

Support
Direction

Direction Support
Direction

Direction

EMPOWERMENT

The first pillar shows a situation where a lot of direction is given. When problems arise, managers tell
operators what to do to fix it. Very little problem solving and initiative is expected, because all the
answers are given by management. This type of situation is good in a crisis such as a military campaign
or a medical emergency, when it is better to follow instructions than it is to debate or try out new
things. It is not good to encourage innovation and ownership.

To change this situation, one must follow a gradual process whereby less direction is given, but a lot of
problem solving support. For example, in a situation where an operator reports a breakdown, the
first-line manager used to tell the operator to notify maintenance, but now the first-line manager might
resist the temptation to give direction, but rather asks the operator to make the decision about what
comes next by asking "Well, what do you think we should do about it?" If the operator struggles with
the answer, the first-line manager provides support by coaching him on how he, as the first-line
manager, would typically make this decision by asking him, "What do we usually do in this situation?"
When the operator replies that he usually needs to notify maintenance, the first-line manager gives
him the recognition for coming up with a possible solution by saying "I agree with you - will you notify
maintenance?" If the operator needs further assistance in doing this, the first-line manager provides
this support.

Clearly this will not necessarily always be a smooth transition, but we need to allow people to make
their mistakes and to learn from them. A first-line manager might want to start by delegating to people
who are already empowered - every team has one or two stars who can be trusted with new
responsibilities immediately. And every first-line manager has routine tasks that he/she can delegate

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immediately. The trick is to start small and to make this a gradual process of changing mindsets,
encouraging participation, coaching and recognising contribution.

Some books mention what they call "self-directed teams". These are teams who can function
operationally without a first-line manager for significant amounts of time - even all the time! You can
imagine what a first-line manager would be able to focus on if he/she knew that the operation is taken
care of. He/she would be able to spend most of his/her time on coaching people, facilitating problem
solving, helping the team to identify root causes of problems, motivating people, etc.

1.9.3 The CAPDo cycle

One of the major reasons for programmes and initiatives and best practice implementations failing, is
the fact that there is no proper review system in place. Below, one of the best review systems in the
world is displayed - it is called the CAPDo cycle: Check, Analyse, Plan, Do - it is derived from
Demming's CAPDo cycle.

CAPDo cycle

CHECK means to:

• monitor performance against the plan to ascertain if
objectives are being achieved

• Get early readings of the results of the plan – use the various QC Tools
DO is to: • Plot the results on the achievement graphs – visually ANALYSE / ACT means to:
• Discuss results (good and bad) and identify reasons for performance • identify corrective action
• carry out the plan and
• Communicate results to all who need to know if the objectives are not
communicate the achieved and re-enter
• Draw lessons and recommendation from the experience
change to all who the plan phase
need to know • standardise the changed
CHECK process once it is under
control - through
• Communicate to all who need
reviewing the SOP's
to know – visually display the
• analyse reasons for poor
plan
• Implement the plan
(or good) performance
• Provide training wherever DO ANALYSE and to identify corrective
necessary measures
• Ensure resources are provided
wherever necessary • Analyse results
• Identify corrective actions and
PLAN re-enter plan phase if objectives
were not fully achieved
• Standardise through review of
SOP's
• Advise all who need to know
PLAN means to: • Ensure that training in the new
• gather information on the process and, on the basis way takes place
of that information, to plan improvement • Ensure monitoring of SOP to
ensure gains are held
• Identify the process or problem to be addressed
• Involve the relevant people
• Collect and analyse data and other information
• Set objectives
• Develop the plan (action steps – What?) and dates (When?)
• Pinpoint responsibilities (Who?)
• Ensure resource allocation

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Some companies fail at the planning stage because they do not spend enough time on planning. Or they
have knee-jerk reactions and then passionately drive initiative after initiative without really
understanding whether it will add value. Other companies struggle at the doing stage. They spend a
long time planning, but then simply find it hard to get things done. A good reason for this is usually that
they simply do not go over to the next step to ask the question 'Why are we not making progress?' so
that they can take corrective action. Other companies fail to go for the second round of the cycle, so
that the initiative is continuously improved.

Another crucial mistake is not keeping the cycle going by celebrating/energising/recognising. When
people feel as if their efforts are not noticed, they might just start working on something new, which
they feel will bring them the recognition they need.

LEARNING APPLICATION 4

In terms of the CAPDo cycle,

• Where do you think your company's weakness lies?

• Where does you personal weakness lie?

It is easy to see why the CAPDo cycle is a fundamental of the 20 Keys - it is the very definition of
continuous improvement! You will see that the last chapter in every Key workbook is about
implementing that specific Key. And each of the Keys will be implemented using the CAPDo cycle.
Even when teams meet to solve problems, or when we implement best practice, they will be
encouraged to use the CAPDo cycle to ensure that what they plan gets done and what they do adds
value.

An important step of the CAPDo cycle worth discussing here is that when we have made the
necessary corrections, we should standardise the initiative as part of our business processes. When
we start something new or change something, our natural tendency will be to "roll back" to what we
are used to. For this reason, we document the new process in a standard operating procedure to make
sure that we don't slip back to our old ways of doing things.

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S
DB
CHECK

DO celebrate ANALYSE
success

PLAN

Continuous
Improvement
s
ard
d
S tan

1.9.4 Total employee involvement

“When all employees are aware of the company’s position in relation to other enterprises a true feeling
of competition is developed and they will do whatever they can to win. Management and workers will
cooperate in their efforts to raise quality and productivity.”
Iwao Kobayashi

Inherent throughout this process is the involvement of all employees. Says Jack Welsh previous
Chairman and CEO of General Electric:

“The companies that find a way to engage every mind - harness every volt of passionate energy, bring
excitement to the lives of the people, motivate people to come to work in search of a better way - every day - will
be the companies that will win.”

and Gianni Ravazotti Chairman of Ceramic Industries SA:

“As managers we must encourage and challenge all our people to constantly develop and improve. Then we
shall see energised, productive, competitive and profitable companies that just keep on growing!”

People alone can ensure success. The 20 Keys programme was designed with the above in mind and
for all to understand.

The result is a very powerful multi-industry international benchmarking and development tool for the
boardroom and the shopfloor - a methodology which ensures that everyone will work together
towards common goals in the interest of the business.

66 Facilitator's Manual
Implementation of the 20 Keys doubles productivity, strengthens the organisation’s constitution,
improves the competitiveness of the business, focuses on making work easier, energises employees
and creates a pleasant disciplined work environment - this leads to the ultimate happiness and
security of employees in general.

1.10 Integrating other initiatives into the 20 Keys

framework
A critical success factor of implementing a continuous improvement programme is integrating all
current inititiatives into the continuous improvement system. The 20 Keys is a vast, holistic
programme covering all aspects of operations and it provides a sufficient framework to integrate
other initiatives. This will ensure that all initiatives in the company are implemented according to
the sustainable approach of the 20 Keys.

DID YOU KNOW?

Integration is about using the 20 Keys as a broad focus system, which can be used as a tool to
achieve any goals of importance to the company, such as safety or maintenance.

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20 Keys - a solar system

Leadership

Balanced
Scorecard Kaizen / Innovation

Supplier
Development Teamwork
7

20
Keys
Lean
TQM / EFQM Production

New
Technology
Multi skilling /
BPR Learning

Sometimes called the “Power of 20”, the 20 Keys, taken together, “revolutionises” organisations in a
logical and balanced way so that positive effects in one area impact those in another - illustrated above.

Hence, single-focused initiatives, although useful in themselves, lack the lateral support necessary to
achieve long-term sustainable business success.

The 20 Keys programme is a holistic improvement system, integrating all of the many initiatives used
today to improve companies. See 20 Keys Solar System above.

The 20 Keys approach emphasises that one improvement activity influences the other, directly or
indirectly, and each acts as a “foothold” for the other. For instance, should a company wish to
improve quality, it will focus on the quality Key (11) but they should understand that improvement in
quality is dependant upon improvement in Key 9 (Maintenance), Key 15 (Skill Versatility and Cross
Training), Key 12 (Developing your Suppliers), Key 3 (Small Group Activities), etc. Also, it will be seen
that improving quality will improve productivity, cost effectiveness and delivery.

Note: The 20 Keys interfaces and supports other improvement initiatives, for example, TQM, MRP II,
JIT, etc. The 20 Keys includes these initiatives as part of the framework.

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1.11 20 Keys and the strategy of the organisation

The 20 Keys provides the methodology and assists top management in achieving its strategy in the
workplace.

Organisations can only maximally utilise their strategic options and achieve their strategic objectives if
they develop an outstanding strategy and a strong delivery system.

The direct link between strategy and the 20 Keys is through Key 2.

This link is summarised graphically as follows:

Strategy

Strategic Strategic
options objectives
created and achieved
utilised

Delivery System
(20 Keys)

Please note that the meaning of this diagram is described in more detail in the Management System,
Chapter 4.

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chapter 2
FACILITATOR´S MANUAL

Implementing the
20 Keys Programme

In this chapter we will look at specific implementation guidelines. Every implementation will look
different and needs to be sensitive to the needs of the company. It should focus on delivering bottom-
line results.

In implementing the programme, we follow a two-pronged approach:

• build a continuous improvement culture
• use impact projects to drive quick wins.

IMPORTANT INFORMATION

This section should be read together with the 20 Keys Management System discussed in
Chapter 4, which explains the concepts referred to below (such as multi-level meetings) in more
detail.

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2.1 Implementation stages of the 20 Keys programme
The stages of implementation can be graphically summarised as follows:

Implementation stages - detail

Stage 5 Focus:
Growth and Expansion Challenge for undisputed market
leadership, international Silver and
Gold awards and trebling of
Stage 4 productivity
Focus:
Institutionalisation and Stabilisation Sustained performance and doubling of
productivity. Challenge for international Bronze
award
Stage 3
Focus:
Promotion and Wider Application Realising results through more intensive application,
also in suppliers

Stage 2
Integrated Focus:
Implementation Realising results through synergies between the different Keys

Stage 1 Focus:
Preparation and Introduction Understanding and buy-in and single focus
implementation

The stages of implementation can be graphically summarised, as above.

2.1.1 Stage 1: Preparation and introduction (typically year 1)

Overview
This stage provides for initial education of the 20 Keys programme and the communication of its
fundamental concepts and applicability. Results will be achieved during this stage but focus is on
creating understanding and buy-in and preparing the platform for real improvements in stage 2 and
beyond.

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The activities of Stage 1 are summarised below.

Orientate • Orientate and benchmark current position and establish three to four year
and goals
Benchmark • Ensure full understanding by top executive group
• Involve trade unions and “opinion leaders” and all other levels of the
organisation
• Clarify overall company objectives (QCDSM)
• Choose priority Keys and tailor 20 Keys programme to the needs of the
company
Plan • Determine broad implementation programme and schedule
• Establish 20 Keys Promotion Organisation or structure
• Appoint Key leaders and project facilitator / manager
• Q = Quality; C = Cost; D = Delivery; S = Safety; M = Morale
Train • Train coaches (usually Key leaders and responsible managers and first-line
managers)
Implement • Implement priority Keys through the CAPDo cycle

• Review progress monthly and six-monthly at multi-level meetings

Review • Recognise achievements and celebrate successes
• Adjust implementation programme as necessary

2.1.2 Stage 2: Integrated implementation (typically years 2 & 3)

At the end of the first 12 months, the first multi-level planning meeting is conducted during which the
integrated plan of action, to achieve business objectives, is finalised – and integrated into the business
planning system. Training must be scheduled to finish about two months before the financial year-end
for the multi-level meeting to take place about one month before the start of the new financial year.

It is at stage 2 that the formal kick-off takes place. Employees now understand the power of 20 and
what it can do for them and the company. The formal kick-off can take many forms – e.g. a tree
planting ceremony; brochures for all employees; multi-level kick-off meeting, etc.

72 Facilitator's Manual
The activities of Stage 2 are summarised below.

Benchmark • Re-benchmark to determine progress

and
Review • Develop and visually display colour goal achievement matrix
• Develop overall improvement plan to achieve business objectives
Plan • Finalise and communicate company’s basic policy and plan at multi-level
planning meeting
• Facilitate further learning in implemented Keys
Train
• Train and learn new Keys
• Launch formal kick-off of 20 Keys programme
Implement
• Implement new Keys
• Ensure integration of all Keys
• Tie in all other improvement initiatives into integrated plan of action
• Review progress monthly and half-yearly at multi-level meetings
Review
• Recognise achievements and celebrate success
• Aim for 20% increase in productivity, supported by significant improvement
Target
in quality, cost-effectiveness and delivery

Summary of events after kick-off:

• Model desk certificates

• Single minute file retrieval certificates
• Quick changeover certificates
• 4S Level 3 Workplace certificates
• 4S Level 3.5 Workplace certificates
• Fishbowl meetings
• Mid multi-level meeting
• 20 Keys improvement exhibition and content (e.g. carts)
• Treasure mountain map discussions.

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2.1.3 Stage 3: Promotion and wider application
(typically years 4 & 5)

During the third year of the 20 Keys programme, more ambitious improvement targets are set
and aspired to, e.g. in terms of delivery / speed, quality and cost-effectiveness.

The activities of Stage 3 are summarised below.

Benchmark • Re-benchmark to determine progress

and
Review • Update and display colour goal achievement matrix

• Review integrated action plan to achieve business objectives

Plan
• Determine more ambitious improvement targets

Train • Facilitate further learning in implemented Keys

Implement • Ensure all Keys are implemented and fully integrated into all activities

• Review progress monthly and half-yearly at multi-level meetings

Review
• Recognise achievements and adjust programme as necessary

• Aim for 20 to 30% increase in productivity supported by significant

Target improvements in quality, cost-effectiveness and delivery
• Challenge for Bronze Award

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2.1.4 Stage 4: Institutionalisation and stabilisation
(typically years 6 & 7)

By the end of this stage the goal of doubling productivity would have become a reality together with
the real prospect of attaining the Bronze 20 Keys award. (NB. The Bronze, Silver and Gold 20 Keys
Awards are described in Chapter 6 of this workbook).

The 20 Keys themselves have become an integral part of the organisational culture, permitting greater
stability of operations.

The activities of Stage 4 are summarised below.

Benchmark • Re-benchmark to determine progress

and
Review • Update display colour goal achievement matrix

Plan • Plan to achieve Bronze Award

Train • Facilitate continuous enhanced learning of all Keys

Implement • Ensure continuous improvement in all Keys and full integration of all

• Review progress at half-yearly multi-level meetings

Review
• Recognise achievements and adjust programme as necessary

• Achieve the goal of becoming a genuine world class enterprise and achieve
the Bronze Award
• 65 points and International Bronze Award
Target
• Doubling of productivity
• Reducing defects by 80%
• Reducing WIP by 50%
• Improved customer service
• Never cease to improve – challenge for Silver and Gold awards

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2.1.5 Stage 5: Growth and expansion
(typically year 8 and onward)

This final stage represents the ever upward process of continuous learning and improvement - the
setting of new and higher productivity targets so that the Silver and Gold 20 Keys awards can be
achieved. It is a journey rather than a final resting place.

The activities of Stage 5 are summarised below.

Benchmark • Re-benchmark to determine progress

and
Review • Update display colour goal achievement matrix

Plan • Plan to achieve Silver Award

Train • Facilitate continuous enhanced learning of all Keys

• Ensure continuous improvement in all Keys and successful application of

Implement
advanced tools and techniques

• Review progress at half-yearly multi-level meetings

Review
• Recognise achievements and adjust programme as necessary
• Achieve first Silver and later the International Gold Award
Target
• Never cease to improve

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Promotion
2.2
Preparation and Integrated Institutionalisation Growth and
Stages and Deeper
Introduction Implementation and Stabilisation Expansion
Application

First stage Second stage Third stager Fourth stage Fifth stage onwards

• 20 Keys • 20 Keys further • All 20 Keys • Towards Bronze • Towards Silver

introduction and education implemented and award and Gold awards
initial • Integrated promoted into all • Continued on-the- • Continuous
benchmarking implementation activities job training improvement of
• 20 Keys training plan • Continued on- • Synergy of 20 world class
• Set up promotion • On-the-job the-job training Keys practices
Events organisation training and • More ambitious • Action plans
• Single focus implementation improvement
improvements • Follow up targets are set
made • Action plans and aspired to
• Implementation of • Implementation of • Action plans

Facilitator's Manual Chapter 2: Implementing the 20 Keys Programme

Key 1 and other most Keys
priority Keys to
basic level (±3 – 5)

• Orientation and • 20 Keys planning Mid-term and Mid-term and Mid-term and year-
Multi-level Meetings training meeting year-end meeting year-end meeting end meeting
Summary of implementation stages

• Kick-off, midterm

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and year-end
meeting

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Productivity 30% - Doubled in 30% Trebled in

There are five major stages of implementation, as shown and described in the table above.
20 – 30% 30%

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Improvement Goals three years three years

ORGANISATION DEVELOPMENT
Case Study – 36 48 54 Challenge for Challenge for Silver
20 Keys Score Bronze Award - 65 and Gold Awards

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78
March 1992 March 1993 March 1994 March 1995 March 1996 March 1997
2.3

20 Keys
Implementation,
20 Keys 20 Keys 20 Keys 20 Keys
Implementation
Year 2 Year 3 Year 4 Year 5
Year 1 and
Kick-off

BACKGROUND • Study 20 Keys • Started • Implemented all • Strengthen Key • Strengthen Key 1
• Started implementation 20 Keys 1 and workplace • Kaizen
• We implemented implementation of of 12 Keys • Developed model discipline (Key presentations
various Kaizen Keys 1, 10 and 11 • Study of 8 Keys areas for each 10) every month
activities. We • Tours to other 20 • Kaizen Key • Spread 20 Keys • PPORF
wanted to Keys plants in presentations • Kaizen • 20 Keys study questionnaire
improve our other industries every month presentations sessions utilised
constitution every month • “Dry Floor
• There were no • Study linkages Campaign”
quantified goals in between Keys • Key 14 contest
Implementation case study

some areas Level 3.5 attained

• The company was (July) Bronze
weak at meeting Challenge for Award (Sep) –
changes in the Level 3.5 Score 71.1
market

20 Keys Original
Score 33 43.7 53.9 57.2 61.4 72

Facilitator's Manual
The implementation approach of Nichero Foods outlined above illustrates the previous model in practice.
Avtivity June July Aug Sept Oct Nov Dec Jan Feb Mar Apr May
Hold Overall Planning Session Fri 17
Train Management System Tue 21
Select Priority Keys 2006 Tue 21
DO BENCHMARKING Thurs 23
EXAMPLE

HOLD MULTI-LEVEL MEETING (LAUNCH) Fri 8

Train Keys 2 (Management) Thurs 21
Train Keys 2 (Shopfloor) Fri 22
Train Keys 2 (Shopfloor) Mon 25
All Mini-Businesses Established Fri 28
Train Key 1 & Hold Yellow Tagging Day Sat 10
year of implementation of a client company.

Train Key 1 & Create Model Areas Sat 8

Implement Keys 1, 2, 3
Launch SGAs
DO BENCHMARKING & PLAN

Facilitator's Manual Chapter 2: Implementing the 20 Keys Programme

HOLD MULTI-LEVEL MEETING
Study Key 9 & Plan (Maintenance & Supervisors)
Implement Basic Key 9 Concepts
Roll out Key 9 Training
Implement Key 9
Study Key 11 & Plan (Key Leaders)
Train ISO/HACCP (Key Leaders)

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Roll out Key 11
Implement Key 11
Study Key 16

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Study Key 15

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DO BENCHMARKING & PLAN

ORGANISATION DEVELOPMENT
HOLD MULTI-LEVEL MEETING

Example of implementation plan for the first year of implementation for Meadow Feeds Port Elizabeth.
The above are guidelines for implementation. Below is another example of a client company's first

79
2.4 Top management commitment and
understanding

CAPDo
Capability to
CONVICTION UNDERSTANDING manage the
and belief that the and application
SUCCESS = 20 Keys programme
X X 20 Keys
of the Keys LEARNING AND
will deliver results
IMPROVEMENT
SYSTEM

The chief promotion officer (usually the MD) announces the introduction of the 20 Keys at the start of
the first day. This announcement usually consists of:

• A case for change and reasons for the 20 Keys introduction – linking it very closely to the strategic
goals of the organisation
• Expressing a commitment to achieve a Bronze award and doubling of productivity within three to
four years
• Providing an overview of events
• Committing himself and the organisation for the long term.

In addition, the MD must:

• Ensure that everybody is properly trained in the 20 Keys

• Provide the means/resources and quick decisions
• Set tough but achievable objectives and insist on their achievement
• Review results, recognise achievements and celebrate success.

It is recommended that senior executives study the 20 Keys book.

IMPORTANT INFORMATION

Use 20 Keys to:

• achieve business objectives and solve problems once and for all
• make work easier.

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2.4.1 Use 20 Keys to achieve business objectives

Make 20 Keys part of the business improvement plan

Strategy

Strategic Strategic
options objectives
created and achieved
utilised

Delivery System
(20 Keys)

Chief executives develop a conceptual model over time of how to run and improve a business. 20
Keys should be made part of the CEO’s model and should be regularly communicated as such.

Integrated business and 20 Keys objectives

7 Zero Monitoring Manufacturing / Production

9 Maintaining Machines and Equipment
Quality
Q Improvement
11 Quality Assurance
12 Developing your Suppliers
15 Skill Versatility and Cross Training

13 Eliminating Waste

Cost 14 Empowering Employees to Make Improvements

Reduction
C (Productivity 6 Kaizen of Operations
Improvement) 17 Efficiency Control

19 Conserving Energy and Materials

Process Flow 5 Quick Changeover Technology

Improvement
/ WIP 4 Reducing Work-in-Process
D Reduction /
16 Production Scheduling
Faster
Delivery 8 Coupled Manufacturing / Production

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Goal 20 Keys
1 Cleaning and Organising to Make Work Easier

Energise 2 Rationalising the System / Goal Alignment

M&S Workplace
3 Small Group Activities

10 Workplace Discipline

Technology 18 Using Information Systems

T Development 20 Leading Technology / Site Technology

For example, if one business objective is a level of 95% equipment operating rate (availability x
performance) then that should be set as the target for Key 9 (Maintaining Machines and Equipment).
The Key 9 action plan, developed by teams, should focus on this target and the performance graph
should measure achievement of this goal. The same for quality – the business target here should
become the target for Key 11 (Quality Assurance). And the same for productivity – the business
target here should become the target for Key 6 (Kaizen of Operations).

Please also see the goal configuration table.

DID YOU KNOW?

The strategy map explained in Chapter 4 is an excellent way in which to align your 20 Keys
implementation to the business objectives.

2.4.2 Easier, not extra!

People might regard their real work and 20 Keys work as two different things and only do the latter
because top management requires it of them. In other words, the real work of the business and 20
Keys work is not integrated and the latter is seen as additional work.

Real Extra “20 Keys work

Work Work is seen as
additional work”

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The solution
Create real understanding.

Starting with leadership, real understanding needs to be created regarding the following:
• The purpose and philosophy of the 20 Keys
• Successful implementation
• The Keys themselves.

Create real understanding

FROM TO
Traditional Way 20 Keys Way

Real Reduce work by

Real Extra
Work using the
Work Work
brainpower of
the operator and
the 20 Keys
methodologies

A practical example illustrating the traditional way is of a machine that wastes material. The traditional
way would be to insist that the operator cleans up a number of times per day - that, pure and simple, is
extra work and the perception of the operator is strengthened - 20 Keys means extra work!

The 20 Keys way teaches us all to use the most basic problem-solving tool. That is, to ask “Why” five
times until we reach the root cause of the problem - and eliminate the source of the material waste.
When we succeed in doing that, it should be celebrated because we have reduced at least three types
of waste.

1. Waste of extra work (Key 1)

2 Waste of material (Key 19)
3 Waste of not using the ideas of first-line employees (Key 3) (which is critical for the long-term
motivation of the employees - liberating the “Picasso” in the people!)

Also inherent throughout the process, is the involvement of all employees in benchmarking and
improvement.

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2.5 Training of Keys

1 2 3
Train everybody Train all
Coaches train
in large first-line manager
and managers who Key Leaders
multi-level OR then train their
OR who then train
groups teams
teams

FIRST-
LINE
MANAGERS KEY
AND LEADERS
MANAGERS

GROUPS

TEAMS TEAMS TEAMS TEAMS

The ideal is to train all employees together with management. (See alternative training approaches
above.) This is not always feasible, especially in large organisations. In the latter cases, managers and
first-line managers are trained in the new Key; they train their subordinates and implement the action
plan for the Key. During each consequent monthly multi-level training session, progress on the action
plans is reviewed with the assistance of the goal achievement matrix before the next Key is introduced.

Companies generally provide introductory lectures for all Keys (or for at least eight to 12
Keys) and implement three to five Keys in the preparation stage.

The reason for utilising managers and first-line managers as trainers is very important. As long ago as
1953, Edward Fleishman found that first-line managers (and employees) behaved according to the
actions of their own bosses - no amount of training will change that unless the training comes from the
first-line manager's boss or the first-line manager - who will then in all probability change as a result of
it.

The Stage 1 training alternatives can be graphically explained and summarised as above.

The best alternative in our view is Option 2

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EXAMPLE

The action plan should be explained in detail on day one

20 Keys introductory lectures should be carefully planned. After the first year of preparation, the
basic principles should have been acquired by the company. Concepts which are not well understood,
will require supplementary training. Review training every quarter and renew the training plan each
year according to the company’s requirements.

NB: The sequence of training will depend on the needs of the company.

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2.6 Recognition of achievement
and celebration of success
An important part of implementing the 20 Keys is be to motivate people within the organisation to
change and then to keep the organisation energised. For this reason, it is important for the leadership
team to firstly accept their responsibility as the main motivators and energisers of the organisation and
secondly, to decide how they will do this: thinking of appropriate recognition and reward systems and
ideas (and budgeting for this!)

How recognition and reward will be done will depend on the culture of the organisation or the culture
that the organisation will want to create. However, with the 20 Keys, celebration of success will
become an integral part of the implementation plans and methodology and therefore also of the
organisation's culture.

In the paragraphs below we will list some examples of how other companies manage to recognise their
stars, celebrate success or energise their organisations.

IMPORTANT INFORMATION

Celebrating is not necessarily something people expect, but it sure is appreciated and motivates
people to participate again and to put in an even better effort.

CELEBRATE, ENERGISE, MOTIVATE, RECOGNISE … CONTINUOUSLY

There are a few golden rules for recognising and rewarding people. Here are three very important
points:

• All recognition and reward MUST have respect as its basic component. All recognition is just a
symbol of our respect for the individual and his/her contribution. Recognition without respect is
just token recognition.

• Recognition must be as immediate as possible. Recognition loses its energising effect the later it
comes after the event. A thank you that comes a month after the event feels like an afterthought. In
contrast, a thank you that comes on the same day or within the same week almost has a synergistic
effect with the sense of achievement that the person feels.

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• Recognition must be specific. "Thank you for being such good team members" simply doesn't have
the same effect as "Luvuyo, Moses and Mike, I appreciate you working late last night to get that job
done - you helped us out of a tight spot". The more specific recognition is, the more energising it
will be - it somehow shows that thought has been put into the idea. Being specific refers to both the
reason and the person.

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Below is a list of examples of how continuously improving companies are celebrating, energising,
motivating and recognising:

• Take before and after Photos - publish and/or display them

• Write articles for the company newsletter
• Invite successful teams to present their case study to management
• Send successful teams to conferences to present their success on behalf of the company
"Take visitors to the area and ask operators and artisans to explain to the visitors what they have
achieved and how they approached it
• Hold '20 Keys days' where employees get a chance to display their knowledge of the Keys by
competing against each other in 20 Keys quizzes and the like - even invite family members!
• Show appreciation in unexpected ways such as the management team greeting employees at the
gate at the start of a shift with a warm cup of coffee
• Send teams on visits to other continuously improving companies
• Arrange special 20 Keys courses for high-performance teams to provide them with more
improvement ideas
• Get the management team to write their congratulations and appreciation on a large poster
• This poster is then displayed in the team's area or in a general meeting area such as the canteen
• Get specific 20 Keys recognition gifts which managers can use to recognise their teams with
• Start a 20 Keys recognition guide which provides guidelines and ideas to managers in giving the
appropriate recognition
• Certificates: filled in by the manager, specifying exactly what the person is recognised for
• Hold competitions or announce challenges
• Hand out sown-on badges for star employees or people like safety reps, first aiders, Key champions
(see the chapter on implementation roles and responsibilities), etc.

2.7 Critical success factors and biggest mistakes

In every implementation there are some things that are critical to the success of the initiative. These
factors have been identified through decades of continuous improvement implementation. They are
listed below.

2.7.1 Characteristics for rapid progress

• Top management always shows a positive attitude towards improvement

• All the Keys are implemented - this creates synergy and support for the other Keys "Corporate
goals and the 20 Keys goals are fully aligned

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• Senior management regularly evaluates 20 Keys status - their follow-ups avoid delays in
implementation
• Multi-level meetings ensure that corporate goals are completely understood by employees and
what, when and up to where to implement is clear
• The CAPDo cycle of the 20 Keys rotates successfully
• There is a strong belief that the company will be able to achieve tremendous results through
implementing the 20 Keys, but understands that it will take time

2.7.2 Most profound actions and biggest mistakes

A survey was done at a conference where 140 delegates implementing continuous improvement in
their workplaces were asked to identify:
1. The two most profound actions taken that facilitated continuous improvement implementation;
and
2. The two biggest mistakes they made.

These are discussed below.

2.7.2.1 Most profound actions

1. MANAGING DIRECTOR COMMITMENT

This issue was raised by a lot of people as being the single most profound action one should take to
ensure successful implementation. This MD commitment is achieved by:
• MD training
• MD involvement
• A top-down approach
• The MD being the driver
• MD buy-in.

2. MANAGER / MANAGEMENT COMMITMENT

As is the case with MD commitment, management commitment is viewed as being critical for
successful implementation. The following is needed to achieve management commitment:
• Continuous evaluation of managers, with 20 Keys implementation progress as one of the criteria
• Appoint managers as coaches
• Involve managers and first-line managers in the actual implementation of the 20 Keys
• Ensure management buy-in.

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3. DEDICATED HUMAN RESOURCE ALLOCATION
The appointment of dedicated human resources includes programme managers, facilitators and
Key champions. This is further discussed in Chapter 3.

4. INVOLVING ALL STAKEHOLDERS

This point emphasises the involvement of all stakeholders at every stage in the process. This
involvement includes allowing and enabling employees to take ownership of the implementation
process and making them accountable for their actions.

This involvement can also be achieved through the formation of small groups and teams, as well as
the use of multi-level meetings.

An important group of stakeholders is the union, which should be treated as a partner in the
process they should be kept informed and involved throughout the process.

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5. INITIATIVE INCORPORATED IN BUSINESS PROCESSES
Integrating the 20 Keys and the existing business processes means integrating all programmes such
as NOSA, 6 Sigma, etc. with the programme. This also involves the use of the 20 Keys to achieve
business objectives and integrating it into the company vision.

Integration is about using the 20 Keys as a broad focus system, which can be used as a tool to
achieve any goals of importance to the company, such as safety or maintenance.

6. TRAINING PROGRAMMES / INCENTIVES TO CREATE ENTHUSIASM

Knowledge through training is viewed as being one of the most important enablers with regards to
the 20 Keys. Without understanding the programme, one cannot expect people to be enthusiastic
about it. Training should be the starting point to get enthusiasm going, but should take place right
through the process. Another important point on training is that it should take place on all levels
and should be customised for every level according to needs and literacy level.

Incentive schemes directly connected to continuous improvement is also viewed as being critical
for motivation and creating enthusiasm.

7. REGULAR BENCHMARKING
Benchmarking is a powerful tool which can be used to structure, re-focus and re-energise an
improvement effort. By benchmarking the organisation and involving all in the benchmark,
everyone gets a clear vision of what still needs to be done and what successes can be celebrated.

Benchmarking can re-energise a slowed down process; be used as a training tool for first-line
employees and it can create an excellent opportunity to involve all levels in the programme.

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8. DEVELOPING THE FIRST-LINE MANAGEMENT LEVEL
When a paradigm shift is needed in a company, it is necessary to develop the first-line managers as
they are the ones that drive the change on the front-line. Programmes such as SuperVision for
Energised Work teams (see www.odi-sa.co.za) were designed to help strengthen this level.

Companies which acknowledge the first-line manager as one of the most important persons in the
continuous improvement chain should drive their development with much enthusiasm.

9. WIDE INFORMATION SHARING

Another way in which to establish ownership through knowledge is by sharing as much information
as possible with all stakeholders. Visual and verbal information sharing is of importance in 20 Keys
implementation and therefore an effective communication structure or system should be
established early in the process. This information should not only include action plans and general
information, but should also include recognition of success.

Regular meetings should be held with all stakeholders to share and further explain information and
progress.

10.STRUCTURAL ADJUSTMENTS
If the organisation structure or headcount needs to be changed, these adjustments should be done
prior to the launch of the 20 Keys so that employees do not perceive the Keys in a negative way.

2.7.2.2 Biggest mistakes

The following are common mistakes identified by companies who have been in the programme for
some time:

1. Lack of MD/CEO commitment and involvement

2. Lack of involving all stakeholders
3. Lack of appropriate training
4. Not integrating the 20 Keys and other business initiatives
5. Moving too fast too soon
6. Developing the first-line management level too late.

3.7.3 Critical success factors checksheet

In the checksheet on the following page, the above points have been summarised. It is recommended
that over 70% of these factors should be in place before the launch of the 20 Keys to the wider
organisation.

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No. Critical Success Factor /X

1 The MD has a good understanding of the 20 Keys and has expressed his
commitment to the programme for the long term.

2 The site management team has a good understanding of the 20 Keys and has
expressed their commitment to the programme for the long term.

3 Important stakeholders have been identified, have a good understanding of the 20

Keys and have bought into the programme. They are involved in the planning
process.

4 The case for change has been articulated and a plan exists to communicate the 20
Keys to the whole workforce.

5 The case for change has been translated into QCDSM targets for the site.

6 An overall 20 Keys implementation plan for the site has been drawn up.

7 The implementation roles and responsibilities of the 20 Keys promotions

organisaion have been agreed upon. Where necessary, resources have been
appointed or are being recruited.

8 It has been agreed that all best practice implementations will take place within the
implementation framework of the 20 Keys. Other existing initiatives have been
included in the site 20 Keys implementation plan.

9 Managers have committed time for training - for themselves and their teams.
A budget has been created to facilitate the implementation.

10 A forum has been created in which senior management regularly evaluates the 20
Keys implementation status according to the CAPDo cycle.

11 All foreseeable restructuring and right-sizing will be done before implementation

starts.

12 A plan is in place to develop the first-line management level so that they will be
able to lead the initiative at first-line level.

13 A plan is in place to develop the operator level so that they will be able to
participate and contribute to the continuous improvement of the organisation.

14 The first progress benchmark has been planned and the management team has
committed to holding such a benchmark every six months.

15 The CAPDo cycle is well understood and is being incorporated into all
improvement initiatives, projects, etc.

16 Impact projects have been identified to generate value right from the word 'go'

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2.8 Implementing the 20 Keys in support departments
It is important that support departments are involved from the start of implementation. There are a
few reasons for this:
• It ensures that the 20 Keys is not perceived as 'something for the first-line' or 'a production system'.
If this perception starts, it will be difficult to involve the departments later
• It ensures that we don't build a tall, lean tower. The 20 Keys is a holistic system - it not only looks at
the areas that need improvement, but also at the aspects that will need to support this
improvement
• A lot of value is hidden in support functions - it would be a waste not to access it. People in support
functions are able to come up with great improvement ideas and can be very creative and
enthusiastic
• Support functions are often able to progress and implement faster, creating energy and early
successes.

The 20 Keys implementation should not only involve support departments from the start, but thought
should also be given to involving strategically important contractors and suppliers. Key 12 - Supplier
Development, deals more with how suppliers and contractors can be involved.

The implementation roles and responsibilities for support departments look similar to that of
operations. The manager of the area will be the chief promoter, while staff members will be the
implementers. The site 20 Keys support team (facilitator and Key leaders), as well as the central 20
Keys resources, should also provide support to support functions. In support departments, Key
champions often play a powerful role during implementation.

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20 Keys activities in support departments

11 Quality assurance system

20 Leading technology/site technology

15 Skill versatility

1 4S 9 Maintaining
equipment
5 Single minute filing
Empowering
19 Zero based 3 Small group activities 14 workers
budgeting to make
improvements

2 Rationalising the 7 Zero monitor 6 Value analysis of

system/goal manufacturing operations
alignment
Operations
improvement
Workplace policies One-page standards sheet

Reducing
4 inventory 17 Efficiency control 6 Value analysis of
operations
(shortening lead time)
Collection and Improvement
Revolutionising analysis of work planning
business processes time data chart

8 Coupled manufacturing 10 Time control and 13 Eliminating

Commitment waste
12 Developing your 18 Using information systems
suppliers
16 Production scheduling

The 20 Keys programme, although having evolved in production facilities, also applies to support
divisions since high quality, cost-effectiveness and speed of delivery are also important criteria for
good performance. For instance, Key 1: Cleaning and Organising, and Key 5: Quick Changeover
Technology, are vital for the improvement of office work. Key 2: Rationalising the System / Goal
Alignment, allows for departments to clarify their duties and responsibilities and it encourages
improvements to be made. Key 7: Zero Monitor Manufacturing, advocates the use of a one-page
standard for work procedures indicating required labour hours and efficiencies; supporting Key 17:
Efficiency Control. Key 15: Skill Versatility and Cross Training, is also facilitated by this one-page
standard which in turn becomes part of Key 20: Leading Technology, for strategic advantage. Notice
too that quality of work will increase as clear procedures obviate error, and hence Key 11, Quality
Assurance, is further reinforced. Clerical operations are thus made easier and productivity
dramatically improves.

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chapter 3
FACILITATOR´S MANUAL

20 Keys
Implementation Roles
and Responsibilities

3.1 Introduction
As we saw in Chapter 2, the provision of appropriate human resources is essential for the success of
the continuous improvement initiative. Another critical success factor is the involvement and
commitment of management. This chapter highlights and describes the roles and responsibilities of the
various stakeholders.

However, before we start looking at the detail of the roles and responsibilities, we will take a look at
the leadership style required to drive a programme like this successfully.

3.2 Leading the 20 Keys

Sustainable change is brought about through:
• involvement of everyone
• the use of the CAPDo cycle
• empowerment of people so that they understand and own the process
• expecting the change once it has been implemented
• providing coaching and support.

Telling people what to do is easy. But getting them to keep on doing it when you turn your back,
requires a completely different approach. The following are characteristics of the type of leadership
and management style that we will need to adopt as an organisation in order to implement the 20 Keys
successfully:

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RESPECT: This characteristic underpins everything we do. When people sense that we respect
them and their contribution, they will be much more willing to offer their opinions and ideas. This
characteristic starts with believing that everyone has something to contribute - even if it is just by
helping us to understand the problem.

EMPOWERMENT: Empowering people is about developing them and then allowing them to use
those skills. It also about handing over some of the power that you have to someone else - this takes
courage on the part of the manager.

INVOLVEMENT: Two heads are better than one. And the best person to solve a problem is the
person who works closest to the problem. Both of these principles should be in the hearts of every
manager driving the 20 Keys.

FACILITATION: This is closely connected to the previous points of involvement and

empowerment. A manager must be a facilitator of ideas and energy. By facilitating problem solving,
rather than simply giving the answers, you allow your team to buy into the process and to achieve
something that will make them feel good about contributing.

MOTIVATION: People don't find it easy to change. For this reason, managers need to keep on
motivating the reason for change, recognise people who are willing to change and keep the team
energised and focused.

COACHING: In the 20 Keys we will be empowering people to contribute, to take responsibility and
to innovate. This will require managers to become active coaches - a trainer that is involved through
careful observation, in continuous hands-on coaching. Without managers taking an active role as
coaches within their teams, the 20 Keys will not take off. Coaching refers to coaching individuals in
one's team but also to coaching the team as a whole to work together more effectively.

SITUATIONAL: Change is not easy to manage. Because it has to do with people, it is often hard to
predict. For this reason, leaders will have to be able to read the change. This means that they will have
to change their strategy to suit the situation - driving results, forcing through a decision, nurturing
teamwork, coaching, leading - whatever it takes to get the team to the new level.

SERVING: The 20 Keys will help us to achieve our vision of turning the organisation upside down so
that everyone in production support will support production to add the value that makes us exist and
grow as a business. A serving leader does not consider how he/she can look good or come up with 'the
next big thing'. Rather, a serving leader looks around him/her to see how he/she can make life easier
for the people around and below him/her. This is the attitude that we want - looking at how we can
make it easy for our organisation to add value.

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IMPORTANT INFORMATION

"We (as managers) teach others the knowledge, skills and strategies they need to succeed. And we
work hard to get obstacles out of their way so they can make progress."
The Serving Leader - Jennings & Stahlwehrt

"In the past a leader was a boss. Today's leaders must be partners with their people.... they no
longer can lead solely based on positional power."
- K. Blanchard

LEARNING APPLICATION 5

a. Rate your management style according to the concepts on the previous page.

Little evidence of it Some evidence of it We generally do this Our strong point

Respect
Empowerment
Involvement
Facilitation
Motivation
Coaching
Situational
Serving

b. What should the targets be for two years from now?

c. Which do you believe are the characteristics that we should improve first?
d. Consider each characteristic mentioned and think of someone on site or in the company who
displays this characteristic in his/her management style. Explain to the group why you believe
this person possesses this characteristic.

Characteristic Name of Champion

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What type of manager are you?

High on relationships

High on performance
Warm and

Low on performance
World Class
Ineffective

Cold and
Frightening Autocratic

Low on relationships

The bottom left corner describes a management style which neither cares for performance, nor for
relationships. People being managed in such an environment find it a cold and frightening place - they
know that they are not performing, but no-one cares enough to address this either.

The bottom right corner describes the autocratic leadership style. This type of manager drives
performance at the cost of relationships. This type of style only manages to win a grudging respect
from people.

The top left management style is warm and ineffective: it drives relationships at the cost of
performance. This type of manager does not address performance issues easily because it might cause
unhappiness within the team.

The top right management style clearly demonstrates the type of leadership that we require for the 20
Keys - it develops people to drive performance. It manages to strike a balance between maintaining
cooperative, professional relationships within the team, while driving those things that will make a
difference to Key Performance Indicators.

IMPORTANT INFORMATION

To make the 20 Keys successful, we will have to do the 'relationship thing': develop, coach,
facilitate, motivate, etc. But, we will also have to make the system deliver the desired results. As
a management team, we will have to measure ourselves on exactly how good we are at
maintaining this balance.

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The 20 Keys Management System (Chapter 4) was designed to ensure that we keep an eye on the
performance of the system, while the various development programmes, such as SuperVision for
SuporTeams (see www.odi-sa.co.za) will focus on helping us to adopt the required management and
leadership styles.

LEARNING APPLICATION 6

Draw the previous model on a flipchart or white board. Let each member of the group come
forward and plot where they believe their management style lies - the group is allowed to
influence this opinion!

Discuss where your strengths and weaknesses lie, as a leadership team.

3.3 The promotion organisation

General manager
or Managing director
Chief promoter of the 20 Keys

20 Keys Facilitator Key Leader

Facilitator of the programme Expert in the Key

Responsible for providing necessary Responsible for providing necessary

support to departments and expert support to departments and co-
coordinating the implementation ordinating the implementation of the
of the programme relevant Key

Department manager
Promoter of the 20 Keys in his/her
section or department

First-line manager
Promoter of the 20 Keys in his/her team

Operator
Implementer of the 20 Keys in
his/her workplace

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This model shows the organisation's reporting line. However, in the various functions, the same model
would apply:
• Line management (in any department) drives the 20 Keys
• 20 Keys facilitator and Key leaders support the 20 Keys.

IMPORTANT INFORMATION

It cannot be over-emphasised how important it is for the line function to assume and retain
responsibility for the programme.

If the operations function takes responsibility for the programme, the following will
happen:

• Best practice becomes part of daily operations

• Implementation reflects operational priorities - this delivers real results and gives the
programme credibility in terms of making work easier and solving problems
• The pace is regulated by operational realities and priorities - ensuring that
implementation is not rushed, which leads to a superficial, burdensome and
unsustainable implementation.

If a support function takes responsibility for the programme, the following will happen:

• The 20 Keys stays an initiative rather than 'the way of doing things'. This means it will
have to compete with other new initiatives
• The implementation reflects that department's perception of what operational
priorities are
• The pace is either too fast or too slow: too fast guarantees a superficial, unsustainable
implementation and too slow means it is not addressing the operational needs and will
lose its credibility
• The support function leans the implementation towards its field of expertise and
therefore the implementation is not holistic or balanced in order to provide the
synergistic support that the 20 Keys can provide.

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3.3.1 Line management implementation roles and
responsibilities

Title Level Roles

Finalises and communicates:

• Strategy
General Manager or Managing Director

• Policy
• Overall goals
• Overall improvement plan
20 Keys Chief Promoter

Sets tough but achievable objectives; insists on their achievement;

reviews results; recognises achievements and celebrates success
Takes ultimate responsibility for the 20 Keys and commits him-/herself
and the organisation to the long term
Prepares action plan for Keys 2, 17, 18, 19 and 20
Approves promotion organisation (selects Key leaders) and delegates
responsibility
Advises and leads Key leaders and 20 Keys facilitator
Ensures that everybody is properly trained
Approves agenda for and leads multi-level meetings
Approves awards; provides the means and resources for successful
implementation and quick decisions.

Takes responsibility for the implementation of the programme in

his/her department
20 Keys Promoter

Prepares overall plan and goals for his/her department in the case of
Department
Manager

large organisations
Prepares action plans for implementation of Keys 4, 5, 7, 8, 9, 13, 14,
15, 16 in his/her department
Approves action plans of teams
Follows up on progress on action plans and goal achievement matrices
and provides necessary guidance.
Promoter

First-line
Manager

Takes responsibility for 20 Keys implementation in his/her team

20 Keys

Prepares action plans for Keys 1, 2, 3, 6, 10, 11

Follows up progress on action plans and takes corrective action.
Implementer

Operator

Comes up with ideas for improving the workplace

20 Keys

Implements and lives the concepts of the 20 Keys

Contributes to small group activities and impact projects.

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3.3.2 Site support function implementation roles and
responsibilities

3.3.2.1 Site 20 Keys facilitator

It is preferable to assign a full-time person to the role of 20 Keys facilitator. In larger organisations, two
or three facilitators can be assigned to look after implementation in specific departments.

Title Level Roles

Facilitates the whole process of implementation. Constantly reviews

the process of implementation, identifies “rocks” in the way and takes
appropriate corrective action to ensure smooth implementation
Assists the General Manager or Managing Director with successful
implementation of the 20 Keys in the company
Manager or Specialist
20 Keys Facilitator

Makes all preparation for and organises multi-level meetings to meet

the intentions of the General Manager
Prepares and compiles the draft overall plan
Manages the promotion organisation structure
Plans and organises Key leader and promoter meetings to facilitate
coordination and implementation
Plans and promotes training sessions and in-house case study
presentations
Provides 20 Keys material
Provides 20 Keys advice and support
Liaises with outside 20 Keys consultants.

IMPORTANT INFORMATION

The 20 Keys facilitator is an ENERGY MANAGER. A talented 20 Keys facilitator knows how to:
• Create energy
• Locate energy
• Channel energy into improvements.

Not all teams and individuals will be equally excited about improvement. It is the job of the 20
Keys facilitator to read the energy levels of the organisation. Where energy is found, it should be
mobilised by providing training, implementation support and recognition.

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CHARACTERISTICS OF A GOOD 20 KEYS FACILITATOR

• Organised attitude towards work in terms of project management

• Stable character and temperament
• Passionate and energetic
• Gets the best out of others through influencing skills
• Assertive and determined to overcome barriers
• Self starter
• Good communicator - at all levels of the organisation
• Exhibits the leadership characteristics mentioned in chapter 3.2 and the company values.

IMPORTANT INFORMATION

A manager once asked a consultant for advice on whom to appoint as the on-site facilitator. The
consultant answered: "The busiest manager in your organisation. The guy who always takes on extra
responsibility."

This is the type of manager who likes challenges, is committed and has a great attitude.

3.3.2.2 Site Key leader

Title Level Roles

Assists 20 Keys promoters and the 20 Keys facilitator in promoting

Key activities company-wide
Assists the project manager with preparation for the mid-year and
Manager or Specialist

year-end multi-level meeting, e.g., progress review, 3-colour charts,

etc.
Key Leader

Serves as coordinator, advisor and trainer for the Key for which
he/she is responsible
Meets regularly with Key champions to support and advise
Assists the 20 Keys project manager with Key progress review and re-
planning
Facilitates specific small group activities or impact projects in his/her
Key.

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IMPORTANT INFORMATION

Although the Key leader will usually be the in-house subject expert, it is also important to ensure
that this person has a passion for the implementation and for empowering people. The Key
leader should display much of the characteristics of a 20 Keys facilitator. The most successful
Key leaders are the ones that manage to energise and engage. So, although it will be important
for the Key leader to have a thorough basic knowledge of the Key, his/her personality will also
play a large part in ensuring the success of the Key's implementation.

For this reason, it is sometimes advisable to let the 20 Keys facilitator initiate the Key's
implementation. Once the Key has been launched, it will soon be clear who in the organisation
exhibits a passion for the subject and a flair for implementing it. This is sometimes the best
recognition for this person - appointing him/her as Key leader for the site. 'Stars' like this are also
most likely to do this in addition to their current positions. These types of people are always the
busiest in the organisation, but they love every minute of it.

CHARACTERISTICS OF A GOOD KEY LEADER

• Possesses project management skills

• Able to translate complex concepts into a fun, simple format
• Has a good understanding of the subject matter
• Good communicator at all levels of the organisation
• Able to train first-line teams
• Eager to empower and enable - doesn't hog information or knowledge
• Able to create energy.

A great way in which to make the 20 Keys team known to the organisation is by displaying the Key
leaders' photos alongside their Keys on the Radar Chart (see Chapter 4).

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EXAMPLE

20 Keys Radar Chart

Key 1
5

4
Key 14 3 Key 2
2

1
0

Key 11 Key 3

Key 9 Key 6

3.3.2.3 Team Key champion

Title Level Roles

Serves as team coordinator, advisor and trainer for the Key for which
Team Member
Key Champion

he/she is responsible
First-line

Assists his/her manager and Key leaders to promote the Key within
his/her team
Assists the Key leader with drawing up an action plan for the specific
Key.

IMPORTANT INFORMATION

The Key champion usually appears during the early phases of implementation. The manager
might initiate the Key, but can soon hand it over to someone who exhibits a good understanding
of and enthusiasm for the Key.

CHARACTERISTICS OF A GOOD KEY CHAMPION

• Has a good understanding of the subject matter of the Key

• Good communicator - especially with his/her team members
• Able to explain concepts to his/her team
• Is able to cope with change.

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3.3.3 Central support function implementation roles and
responsibilities

In the case of large companies with central resources:

Title Level Roles

Facilitates the whole process of implementation across all sites.

Constantly reviews the process of implementation, identifies "rocks" in
the way and takes appropriate corrective action to ensure smooth
Manager or Specialist
20 Keys Coordinator

operation
Assists General Managers and 20 Keys facilitators with successful
implementation of the 20 Keys in their operations
Makes all preparation for and organises multi-level meetings to meet the
intentions of the Managing Director
Holds regular progress review meetings with General Managers
Plans and organises central workshops for Key leaders and 20 Keys
facilitators
Provides 20 Keys advice and support
Liaises with outside 20 Keys consultants.
Manager or
Key Leader

Stays abreast of best practice developments in the Key

Specialist
Overall

Serves as coordinator, advisor and trainer for the Key for which he/she is
responsible
Meets regularly with Key leaders to support and advise.

Provides training for the Keys - either directly or on a train-the-trainer

External Consultant
20 Keys Consultant

basis
Provides implementation support to the General Manager and 20 Keys
facilitators
Provides implementation support to Key leaders and champions
Develops 20 Keys material
Facilitates improvement projects, when required
Helps to identify improvement opportunities.

IMPORTANT INFORMATION

With the 20 Keys, we will be building our organisational capability to drive improvement
independently. As the organisation matures in its ability to drive and implement change, the use
of external consultants should therefore be gradually reduced.

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chapter 4
FACILITATOR´S MANUAL

The 20 Keys
Management System

4.1 Introduction
Changing our organisation's culture to one of continuous improvement will require us to actively
manage the 20 Keys programme and to consciously adopt disciplines and approaches that will guide us
on the way to world class. For this reason the 20 Keys management system was developed. This
system provides the framework for building continuous improvement into the operations of the
business. It ensures that our 20 Keys implementation balances “inputs” (doing the right things) with
“outputs” (doing things right) - this produces a stronger company and better results..

IMPORTANT INFORMATION

The Foundation Keys should always be one step ahead of the other Keys. However, it is
important not to 'starve' the Foundation Keys by launching the Focus Keys too late. This means
that one should not get too caught up in implementing the Foundation Keys without launching
the Focus Keys. A good guideline is that, as soon as the Foundation Keys are at a level 3, energy
should shift towards making progress in the Focus Keys.

Rolling out the Focus Keys

Once the Foundation Keys are established, start rolling out the Focus Keys. The progress target for

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these Keys is to increase the Key benchmark level by half a level every 12 months. Based on the
operation's priorities, two to five Focus Keys can be launched every year. The amount and type of
Keys implemented depends on the operation's needs.

In the diagram below, an implementation blueprint is shown as a guideline. Your operation's

implementation plan will be drawn up at the initial planning workshop and it must be reviewed and
updated every six months in time for the multi-level meeting. This forms part of the 20 Keys
Management System, which is described later on in this chapter.

0 6 12 18 24
2 2.5 3
Key 1
L Implement Sustain / Advance
2 2.5 3
Key 2
L Implement Sustain / Advance

1.5 2 2.5
Key 3
L Early suggestions L Implement Sustain / Advance
1.5
Focus
Keys
Impact Projects
Benchmark
and Plan

Multi-level
Meeting

2 L
Key Level Event Launch

The 20 Keys Management System answers the question of "How do we implement the 20 Keys?"

4.1.1 The 20 Keys management system

The model on the next page is a graphic representation of the 20 Keys management system. The
20 Keys is managed in parallel with the financial year. Overall goals are set at the beginning/end of
the financial year and action plans are developed. Progress against the action plans is reviewed
monthly by teams. However, every six months, a major progress review is done when we:

• Benchmark ourselves against world class (20 Keys benchmark)

• Review our achievement of our goals
• Revise and update our action plans to ensure that we achieve our goals.

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STRATEGIC AND BUSINESS GOALS

Overall Goals - Company and Departments

Overall Action Plan - Company and Departments

Annual Review Multi-level Meeting Mid-year Review

Action plans

20 Keys Progress Review Mini-business Review

3-Colour Goal Achievement Chart

(Monthly and Six-monthly)

20 Keys Benchmark
(Six-monthly)

Impact Projects

Follow up and recognise

achievements

Promotion Organisation

Each of the elements of the 20 Keys management system will be explained in the sections that follow.

IMPORTANT INFORMATION

It is of course easier said than done to change an organisation's culture. The management system
helps us to do this in a structured way. However, please note that the organisation might not be
able to utilise all the tools in this section from the start. Some organisations still struggle with
drawing up and reviewing action plans at the early stages. Continuous improvement is a journey
where maturity is developed over time in your organisation. By its very definition it is about
taking small steps at a time.

The tools that follow are useful and powerful. However, burdening the organisation too early with
a too formal implementation structure might be the end of the initiative - so be sensitive to this!

Start simple. Use the management system to provide the drum beat and introduce more and
more detail to each of the implementation approaches as the organisation starts to develop the
need for them. Your consultants will be able to help you gauge your organisation's maturity.

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In Key 2, under Goal Alignment, we have articulated a case for change and we have also defined KPIs
and targets in order to achieve this case for change. These are Steps 1 and 2 of the annual 20 Keys
implementation cycle.

STRATEGIC AND BUSINESS GOALS

Overall Goals - Company and Departments

Overall Action Plan - Company and Departments

Annual Review Multi-level Meeting Mid-year Review

Action plans

20 Keys Progress Review Mini-business Review

3-Colour Goal Achievement Chart

(Monthly and Six-monthly)

20 Keys Benchmark
(Six-monthly)

Impact Projects

Follow up and recognise

achievements

Promotion Organisation

Step 3 is to draw up the 20 Keys implementation plan for the year. This is done based on:

The strategy map

The 20 Keys benchmark.

These two inputs to the plan are discussed in the following two sections.

4.2 Aligning the 20 Keys to the business strategy

The strategy map is one of the most powerful tools in the 20 Keys. It helps us to align the 20 Keys to the
business strategy. If this is not done up front, the 20 Keys can easily become a separate strategic focus
rather than the vehicle that will deliver the strategy. The 20 Keys should never become an end in itself.

In short, the strategy map prioritises the implementation of the Keys, based on the
strategic priorities of the operation.

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112
Strategy Map
Key Strategic Actions
Market Supply Chain Efficiency People
Leverage Optimise Improve Improve Vertical &
Regain & Quality Optimise Reduce
EVALUATION & Introduce Rationalise Raw Reduce Fleet Develop Horizontal
Grow Shift Bags through Production Depre- No. Priority Order
KEYS Promote New Product Material Milling Systems Utilisation Motivated Skills Factor of
FACTO Customer to Bulk ciation of X's
Technical Products Mix Procure- Loss Implemen- Efficiency & Reduce Team Develop- Priority
Base Cost
Skills ment tation Overtime ment
Zero-Monitoring
EXAMPLE

7 Manufacturing 7% 7% 18% 3 0.32

Maintaining Machi- 10%
9 nes & Equipment OEE Strategic focus areas 7% 7% 18% 8% 10% 6 0.60 3
Quality
11 Assurance CR per 1000T 10% 9% 9% 7% 7% 18% 6 0.60 2
Supplier
12 Development 9% 7% 2 0.16

Skills Versatility Skills Matrix

Quality 15 Score
9% 2% 7% 7% 18% 8% 6 0.51 5
Eliminating
13 Waste

Empowering Will this Key deliver the strategic focus area?

14 Employees 10%
Kaizen of If yes, allocate the relevant weight.
6 Operations

Efficiency Control
20 Keys 18% 8%
17 2 0.26
Cost Conserving
19 Energy & Materials
7% 18% 2% 3 0.27
Quick
5 Changeover 10% 2 0.28
Sum of the weights allocated to this key
4 Reducing WIP 1 0.18
Production Schedule 10%
16 Scheduling Adherence 9% 7% 18% 8% 5 0.52 4
Coupled
Delivery 8 Manufacturing 8% 3 0.35
Cleaning & Key 1 Checksheet Sum of the weights determines the
Safety 1 Organising Score 2% 10% 7 0.63 1
3 Colour Goal
Key's implementation priority
2 Goal Alignment Achievement 10% 5 0.56 1
No of
Small Group Implemented
3 Activities
10% 9% 7% 7% 18% 10% 6 0.61 1
Suggestions
Morale Workplace
10 Discipline 10% Weighting of strategic focus areas 10% 3 0.38
Using Information 10%
18 Systems 9% 18% 4 0.44
Site & Leading 9% 8%
Technology 20 Technology 18% 4 0.44

Number of X's 10 4 1 0 2 9 9 6 19 6 2 6 2

Weighting 10% 9% 2% 3% 7% 9% 7% 7% 18% 8% 2% 10% 8%

Facilitator's Manual
HOW-TO STEPS

How the strategy map works:

The rows of the matrix each represent a Key. The columns each represent one of your
strategic focus areas.

Step 1: Fill in your strategic focus areas in the column headings.

Step 2: Assign a weighting (%) to each of these focus areas in the row just below the column
headings. The weightings indicate priorities (the higher the %, the more important
the focus area). The weightings should add up to 100%.

Step 3: Start with the first column. Moving down the column, Key for Key, answer the
question: "Will this Key help us in this strategic focus area?" If the answer is yes, tick
the cell that corresponds to the specific Key and focus area. If the answer is no, leave
the cell blank.

Step 4: When all the strategic focus areas have been matched with those Keys that will help
them, replace the ticks with the respective weightings of their columns.

Step 5: For each Key, add up how many 'weighting points' it scored in the column to the right
The more points a Key scored, the more useful it is to the current strategy.

Step 6: Based on these 'weighting points', assign strategic priority to the different Keys in the
last column to the left.

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IMPORTANT INFORMATION

If a Key scores particularly low, the strategy might not be well balanced and thought should be
given as to whether there has been an omission.

Seeing that the 20 Keys is a holistic system for sustainable and continuous improvement, it is a
good test for an operation's strategy. As we will see later on in this chapter, we measure the
operation across all Keys and against world class every six months. This information can also be
used to influence the strategy.

Strategy

Strategic
Strategic
options
objectives
created and
achieved
utilised
Delivery System
(20 Keys)

FREQUENCY
The strategy map is filled in once per year when the strategy is revised.

114 Facilitator's Manual

4.3 20 Keys benchmarking

IMPORTANT INFORMATION

"When all employees are aware of the company's position in relation to other enterprises, a true feeling
of competition is developed and they will do whatever they can to win.

Management and workers will cooperate in their efforts to raise quality and productivity."
Iwao Kobayashi

STRATEGIC AND BUSINESS GOALS

Overall Goals - Company and Departments

Overall Action Plan - Company and Departments

Annual Review Multi-level Meeting Mid-year Review

Action plans

20 Keys Progress Review Mini-business Review

3-Colour Goal Achievement Chart

(Monthly and Six-monthly)

20 Keys Benchmark
(Six-monthly)

Impact Projects

Follow up and recognise

achievements

Promotion Organisation

In many change management books, people emphasise the need to 'create a future state' and indeed,
this is an important part of motivating the change. It also helps organisations to stay focused on what
they want to achieve with the change. 20 Keys benchmarking does exactly this:

• It shows us where we are

• It helps us to determine where we want to be one/three/five years from now
• It shows us what world class looks like, and
• It does this across the whole spectrum of our operations.

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FREQUENCY
The 20 Keys benchmark is done every six months and corresponds to the financial year.

It forms a very important drumbeat of the 20 Keys implementation and should not be neglected. Apart
from the fact that it re-focuses the implementation, it also energises and educates - a great refresher
course! The benchmark that corresponds to the financial year-end should be a full benchmark of all
Keys facilitated by external consultants. The mid-year benchmark is more a progress review and can
be a benchmark of all 20 Keys or only the Keys being implemented.

The benchmark is done using the Key checksheets and maps. The benchmark is facilitated by a
consultant, the on-site 20 Keys facilitator or by a central resource. The score of each Key is
determined by a representative group of people from the oorganisation - people from different levels
and different functions. During the benchmark, a radar chart is produced. This is shown below:

1
20 2
19 5.0 3
4.0
18 4
3.0
17 2.0
5
1.0
16 0.0 6

15 7

14 8

13 9
12 10
11
Target (Jun 10)) Target (Jun 07) Current (Jun - 06)

• Each of the spokes of the radar chart represents a Key

• Each of the circles of the radar chart represents a progress level to world class - level 1 is the
smallest circle and level 5 is the largest circle
• As the Key is scored, a dot is made on the Key's spoke at the appropriate level
• When all the Keys have been scored, the dots are connected and coloured in
• The same is done for the target of a Key - for the next year and for three years into in the future.

116 Facilitator's Manual

IMPORTANT INFORMATION

As the organisation matures, the organisation will become used to benchmarking itself. In fact,
teams will spontaneously start to benchmark themselves and then they will draw up their own
20 Keys implementation plans.

Because a benchmark is both energising and educational, it is best to involve as many people as
possible, or, if necessary, to rotate the people involved so that more people can be exposed to
the process.

As the organisation matures, people will become familiar with the benchmarking principles and
will be able to start benchmarking their own teams. Eventually, each team should benchmark
itself and draw up its own 20 Keys implementation plan. However, from the start and as part of
establishing the CAPDo cycle, we will introduce regular team audits for all the active Keys. In the
table below, the benchmarking frequency is shown. This frequency is based on how quickly
things in this Key can progress/deteriorate.

Months
Keys
1 2 3 4 5 6 7 8 9 10 11 12

7 Map Map

9 CS CS Map CS CS Map
Q

11 CS CS Map CS CS CS Map

12 Map Map

15 Map Map

13 Map Map

14 Map Map
C

6 Map Map

17 CS CS CS Map CS CS CS Map

19 Map Map

5 Map Map

4 Map Map
D

16 Map Map

8 Map Map

1 CS CS CS CS CS Map CS CS CS CS CS Map
M&S

2 CS CS Map CS CS Map

3 Map Map

10 CS CS Map CS CS Map

18 Map Map
T

20 Map Map

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Key 1 - Cleaning and Organising to Make Work Easy
Who? Key champion and first-line manager
Could also include team members on a rotational basis
How? Fill in checksheet and give feedback to the team
Team draws up an action plan to address
When? Every month

Key 2 - Goal Alignment

Who? Individuals - either the whole or at least 20% of workforce
How? Individuals fill in checksheets, OR
Small discussion groups of people discuss checksheet criteria
Management discusses findings and draws up an action plan to address
When? Every two months

Key 2 - Mini-business area checksheet

Who? First-line manager
Could also include team members on a rotational basis
How? Fill in checksheet and give feedback to the team
Team draws up an action plan to address
When? Every month

Keys 4 - 20
Who? Key leaders and champions
Could also include team members on a rotational basis
How? Team draws up action plan to address
When? As per table

Based on the results of the benchmark (includes a score and a 12 month target), action plans can now
be drawn up. The benchmark will tell us where we are currently and what the next step is in order for
us to implement the given Key in a sustainable way. To assist with the process, the team could make
use of a table such as that shown on the next page to jot down things to do to fill the gap between
current and target score.

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MONTHLY, SIX-MONTHLY AND YEARLY REVIEW
Better Faster Cheaper
FOR EVALUATION OF PROGRESS

% Goal
Key Key Title Measures Target Actual
Ac.
Cleaning and Checksheet score (monthly – workplace review teams or patrols)
Organising to Remove the dangerous / unsafe aspects
Make Work Easy Challenge for certificates for level 3 and level 3.5 workplaces (number of 4S awards)
1 • Develop countermeasures for dropping / putting things on the floor
• Change layout to make work easy
• Passages / walkways are important
(At one factory the factory manager first painted the stairs himself, after that everyone started to paint)

Rationalising the Checksheet score (two-monthly – by everyone)

System / Goal Clarify the targets for 20 Keys (this document)
2 Alignment Use action plans to turn the CAPDo cycle
Check 3-colour evaluation (goal achievement matrix) every month
Follow up and support from managers is important
Conduct year end multi-level meetings and mid-year meetings

Facilitator's Manual Chapter 4: The 20 Keys Management System

Quality
Small Group Number of Kaizen suggestions implemented/person/year and number of completed themes
3 Activities As themes for small groups take “Improvement of quality”; “4S”; “Short stoppages”; "Inventory
reduction”; etc
Conduct a “QC circle” improvement conference

Workplace Checksheet score every two months (by all)

Discipline Clarify tomorrow’s job for each person. Display “employees job for tomorrow”
10 Have morning meetings

Revised 08/2001
Early start-ups in the morning (reduce preparation time in the morning)
Make the workplace closure for “cleaning time” shorter
Eliminate waste because of searching time

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MONTHLY, SIX-MONTHLY AND YEARLY REVIEW
Better Faster Cheaper
FOR EVALUATION OF PROGRESS

% Goal
Key Key Title Measures Target Actual
Ac.
Zero Monitor Percentage of machines operating during lunch time; or percentage of one-page standards
7 Manufacturing / or % machine monitoring reduction
Production Improve “mini stoppages”, “defects”

Maintaining Number of mini-stoppages / day; or number of machine breakdowns / year; or machine operation rate
Machines and (or overall equipment effectiveness rate) ; and checksheet score every two months (by all)
9 Equipment Increasing machine operating time (rate) is the main objective
Find countermeasure for “breakdown of machines” (Reduce three evils)
Reduce down time and reduce number of mini-stoppages

Quality Assurance Number of claims; or good product rate; or defects reduced (e.g. print errors, loss time,
etc.); and checksheet score every two months (by all)
11 Display limit samples in front of workers
Improve machines in order not to make defects
Clarify the current good product rate and number of claims and set new targets

Quality
Use fishbone diagrams and pareto graphs to reduce defects for each line
Immediately report defect information to the previous workplace

Developing your Number of defects or delays from supplier / month

12 Suppliers Are there any defects or delays from the suppliers?
To reduce this number, support the supplier
Not only purchase department, but also production people should visit the supplier

Skill Versatility and Score on matrix charts

15 Cross Training Display skill matrix charts (cross training charts)
Ensure that at least two world class persons are stationed at each workplace

Facilitator's Manual
MONTHLY, SIX-MONTHLY AND YEARLY REVIEW
Better Faster Cheaper
FOR EVALUATION OF PROGRESS

% Goal
Key Key Title Measures Target Actual
Ac.
Eliminating Waste Actual (value adding) work rate
13 Make treasure mountain map by using activity sampling
Review the purpose and characteristics of each group of activities
Determine the actual work rate
Have a presentation / discussion of the treasure mountain map

Empowering Count the number of times the improvement corner is used / number of Kaizen corners
Employees to Make Make improvement corners
14 Improvements Ensure that improvement corners are used
Conduct improvement exhibition and contest (e.g. for carts)

Kaizen of Productivity (good units / person or volume / person / hour)

Operations Target: 130% of productivity after year 1
Efficiency control is necessary
6 Speed up the process

Facilitator's Manual Chapter 4: The 20 Keys Management System

Improve good quality rate
Improve operation rate of equipment
Improve quick changeover (Key 5)
Improve starting time of machines in the morning (Key 10)
Do many Kaizens and report them (Key 3)

Cost / Profit Productivity

Efficiency Control Checksheet score every second month by middle management
17 Efficiency control is very important
How is current efficiency control done? Use the checksheet

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Conserving Energy Amount of energy and material conserved / year or % yield improvement
19 and Materials Conserving energy and material becomes profit directly
Amount of water usage, electricity and yield of materials are important

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Reduce industrial waste

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MONTHLY, SIX-MONTHLY AND YEARLY REVIEW
Better Faster Cheaper
FOR EVALUATION OF PROGRESS

% Goal
Key Key Title Measures Target Actual
Ac.
Quick Changeover Number of single changeover machines; single file retrieval shelves (or changeover times
Technology reduction)
Single changeover:
5 • Study “Key points for single changeovers”
• Two machines for one group in the first year
• Let workers, managers and technical people all join in the single changeover project

Reducing Work-in- Inventory levels (value / volume reduction)

Process At warehouse”; at “production line side”; “maintenance parts for the machines”; "packaging materials" ,
4 document in process reduction (tray height / number of excessive cases), etc..
Eliminate unnecessary items right away

Production Number of delivery delays / % on-time delivery

Scheduling If there is no delivery delay to the customers (warehouse) from the factory, take as evaluation factor the
16 daily delay against the production plan (plan adherence)
Use start-completion schedules

Cost / Profit Productivity

Coupled % / Number of model stores completed
Manufacturing / Stores with control boards
8 Production There must only be items which are necessary today (six hours) at the line side
No shortages but also not too much stock

Using Information Number of CPU’s or PC’s used

18 Systems Reduce work time for all jobs by using computers

Leading Radar chart of strategic / core technologies

Technology / Site The technological development level if compared with other companies world-wide

Tech. Dev.
20
Technology Number of patent applications

Facilitator's Manual
LEARNING APPLICATION 7

When do you think your site should have its first major benchmark? Build this into your
implementation plan.

4.4 Basic policy and goal achievement image

After the first benchmark has been done, and every year thereafter, the basic policy and goal
achievement image can be documented.

4.4.1 Basic policy

The basic policy is a document which shows how the 20 Keys will support the strategic objectives of
the company. It is a table which summarises:
• The overall goals of the company (e.g. reducing work-in-process and shortening delivery time)
• The Keys which assist in achieving those objectives
• Numerical goals for each Key (e.g. 20 Keys level to be achieved)
• A goal or goals per Key
• A slogan per Key.

20 Keys basic policy

BENCHMARK SCORES BUSINESS OBJECTIVE KEY SLOGAN

Initial Current Target

10% WWW:
Key 7 1.3 1.7 2.2 Productivity Improvement War on Waste of Watching!

QUALITY Key 9 1.5 1.9 2.5 OEE of 65% No more fire fighting!
Key 11
Key 12
Key 15
Key 13 Score at
Key 14 start of Business
COST Key 6
Key slogan.
20 Keys Target for objective Updated annually
Key 17 end of for end of
Key 19
financial financial year.
Key 4
Key 5 Most year. Updated
DELIVERY Key 8 recent score. Updated annually
Key 16 Updated annually
Key 1 every
SAFETY & Key 2 six months
MORALE Key 3
Key 10
TECH- Key 18
NOLOGY Key 20

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4.4.2 Goal achievement image

The goal achievement image describes the image of company practices and conditions that should be
in place should the target level and goals of a specific Key be achieved.

The goal achievement image per Key is developed at the annual multi-level meeting. Careful
preparation for the exercise is critical and should start well ahead of the annual multi-level planning
meeting, i.e. about two months before the multi-level meeting a draft basic policy is prepared for the
next year. The purpose is to have them prepared and contained together with the business plan.

Goal achievement image

GOAL ACHIEVEMENT IMAGE

Key 7 Every employee is aware of the fact that watching is a waste. Several small
QUALITY
group activities have started to focus on eliminating this waste. The
suggestion register shows that poka-yoke devices are being developed and
installed. In at least five places the waste of watching has been eliminated.

Key 9 Daily maintenance checks and periodic services are taking place without
exception.
There are no more unplanned breakdowns.
A programme is well underway to train operators to do first-line
maintenance of their machines.
Key 11
Key 12
Key 15
Key 13
Key 14 Updated
Key 6 annually.
COST
Key 17
Key 19
Key 4
Key 5
DELIVERY
Key 8
Key 16
Key 1
SAFETY & Key 2
MORALE Key 3
Key 10
TECH- Key 18
NOLOGY Key 20

124 Facilitator's Manual

The two documents are usually combined as in the example below:

20 Keys basic policy and goal alignment achievement chart

BENCHMARK SCORES BUSINESS KEY

OBJECTIVE SLOGAN
Initial Current Target
10% WWW: Every employee is aware of the fact
Key 7 1.3 1.7 2.2 Productivity War on
Improvement that watching is a waste. Several small
Waste of
Watching! group activities have started to focus
on eliminating this waste. The
suggestion register shows that poka-
yoke devices are being developed and
installed. In at least five places the
waste of watching has been eliminated.
QUALITY
Key 9 1.5 1.9 2.5 OEE of 65% Daily maintenance checks and periodic
services are taking place without
exception.
There are no more unplanned
breakdowns.
A programme is well underway to
train operators to do first-line
maintenance of their machines.
Key 11
Key 12
Key 15
Key 13
Key 14
COST Key 6
Key 17
Key 19
Key 4
Key 5
DELIVERY
Key 8
Key 16
Key 1
SAFETY & Key 2
MORALE Key 3
Key 10
TECH- Key 18
NOLOGY Key 20

LEARNING APPLICATION 8

Compile your business's basic policy and goal achievement image.

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126
EXAMPLE

walk-

First-line managers throughout the factory meet to

discuss and coordinate time control policies

• Direct: one cycle unmanned operation during lunch break

- over 10% for each manufacturing section
• Indirect: one page standard - over 10% of routine work
• Zero monitor manufacturing for zero defect
that

two

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EXAMPLE

-
s

one
-

one
-

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4.5 The 20 Keys overall implementation plan

STRATEGIC AND BUSINESS GOALS

Overall Goals - Company and Departments

Overall Action Plan - Company and Departments

Annual Review Multi-level Meeting Mid-year Review

Action plans

20 Keys Progress Review Mini-business Review

3-Colour Goal Achievement Chart

(Monthly and Six-monthly)

20 Keys Benchmark
(Six-monthly)

Impact Projects

Follow up and recognise

achievements

Promotion Organisation

IMPORTANT INFORMATION

In 20 Keys we refer to the 3-item kit. It consist of:

• Basic policy
• Goal achievement image
• Overall implementation plan.

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EXAMPLE

Conserving

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EXAMPLE (CONTINUED)

Conserving

130 Facilitator's Manual

FREQUENCY
The overall implementation plan spans a year's implementation, but is reviewed and refreshed every
six months. Progress is reviewed every month.

After the benchmark and the strategy map, the team will be in a good position to decide
• which Keys should be implemented
• where they stand in terms of the levels
• what the next steps are to implement.

The 20 Keys facilitator is responsible for drawing up the overall action plan.

HOW-TO STEPS

How the overall implementation plan works:

• Each row represents a Key

• Each column represents a month
• Actions are high-level actions and most will probably need more detailed action plans and
discussions
• The third column from the left shows the target level, but also the KPI that is expected to
improve through these actions
• The actions for the past month and the planned actions for the new month are discussed at a
monthly 20 Keys progress meeting (to rotate the CAPDo cycle)
• It is indicated whether an action was done or not. If an action was not done, follow-up plans
are made according to the CHECK of the CAPDo cycle
• When all actions of the past month have been reviewed, the plan achievement is indicated by
dividing the number of DONE actions by the number of planned actions for that month
• The resulting percentage determines the colour coding of the month as follows:
80% or greater = GREEN
50% or greater = YELLOW
Less than 50% = RED
• The action plan is displayed in a central place so that everyone knows what is planned for the
next month(s)
• When discussing the new month's actions, the detail of the planned events is presented by the
respective Key leaders - training and other needs are also discussed.

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IMPORTANT INFORMATION

The General Manager should chair the meeting, but Key leaders should come prepared to
present their actions (of the past and present month). The 20 Keys facilitator should ensure that
this preparation is done.

4.6 Multi-level meetings

STRATEGIC AND BUSINESS GOALS

Overall Goals - Company and Departments

Overall Action Plan - Company and Departments

Annual Review Multi-level Meeting Mid-year Review

Action plans

20 Keys Progress Review Mini-business Review

3-Colour Goal Achievement Chart

(Monthly and Six-monthly)

20 Keys Benchmark
(Six-monthly)

Impact Projects

Follow up and recognise

achievements

Promotion Organisation

The most important drum beat of the 20 Keys is the multi-level meeting which takes place every six
months. The main aim of this meeting is to ensure that everyone is clear about the goals and plans for
the next six months and that everyone has aligned their goals and plans to the greater organisations'
goals and plans.

132 Facilitator's Manual

For this reason these multi-level meetings are held to coincide with the start of the financial year and
the middle of the financial year, so that the organisation is ready to aim for the bottom-line goals from
the very beginning.

The main multi-level meeting is held at the start of the financial year. The mid-term multi-level meeting
is a half-year review to track progress on achieving the goals set at the start of the year, to review
targets and to re-plan for the second half of the year.

MAIN MID-TERM
MULTI-LEVEL MEETING
MULTI-LEVEL MEETING
In the middle of financial year
At start of financial year

During the multi-level meeting, it is typical to do the following:

• Communicate the strategic goals of the business and the state of the business
• Follow up on progress with the overall goals of the business and to set new goals
• Follow up on progress with the overall plan of the business and operation
• Develop plans for the new year (at the year-end meeting)
• Review and refine planning (at the mid-year meeting)
• Re-energise the organisation on its path to continuous improvement.

In preparation for the main multi-level meeting, the following is done:

• KPI targets for the next financial year are set
• The strategy map is completed to see how the 20 Keys will serve the strategy
• A formal benchmark is held
• A draft basic policy and goal achievement image is drawn up
• The overall action plan is drawn up (to enable the organisation to change from current levels of
performance to that required by year-end).

In preparation for the mid-term multi-level meeting, the following is done

• A formal benchmark is held
• The overall action plan is reviewed.

Based on what they've heard at the multi-level meeting, (operation’s goals, plans, etc.), teams develop
their own action plans to support these goals and plans for the next six months. Teams also identify the
Key 3 (Small Group Activities) improvement themes that they will be working on.

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Due to the fact that goal alignment is an important part of this meeting, it is preferable that all
employees attend. Where this is not possible, multi-level representative groups can attend, followed
by feedback to all employees.

IMPORTANT INFORMATION

Thorough preparation for meetings will greatly contribute towards their success. Start with
preparation early - some successful companies start two months before the meeting.

4.6.1 The main multi-level meeting

Keeping in mind that the multi-level meeting is about goal alignment through the involvement of
employees, the agenda needs to be drawn up accordingly. The time duration can vary from half a day to
one day. A typical agenda for a one-day event is shown on the following pages:

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EXAMPLE

and

Facilitator's Manual Chapter 4: The 20 Keys Management System

and and

Revised 08/2001
** This depends on the maturity of the organisation. The more mature teams are in terms of continuous improvement, the more capable they will be to contribute
towards the development of action plans. This is a process whereby the organisation can increasingly involve people in the planning of improvement and the setting of

D
goals. Start small, but keep growing. It can also depend on how big the group at the multi-level meeting is. The smaller the group, the more likely it will be that there are

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not enough representatives per team.

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4.6.2 The mid-term multi-level meeting

The time duration for the mid-term meeting can also vary from half a day to one day. A typical agenda
for a one-day event is shown below:

EXAMPLE

Implementation Group
K

and
and

136 Facilitator's Manual

4.6.3 Vector alignment

"When all employees are aware of the company's position in relation to other enterprises a true feeling
of competition is developed and they will do whatever they can to win.

Management and workers will cooperate in their efforts to raise quality and productivity."

Iwao Kobayashi

As part of the main multi-level meeting, vector alignment is done to ensure that everyone knows and
understands the objectives for the year.

WHAT IS VECTOR ALIGNMENT?

Vector alignment is about ensuring that all employees understand the targets that are aimed for in the
implementation of the 20 Keys. It is about creating a clear picture of the "end state" or "future state" of
the company - once people can see this, they will feel endlessly more motivated to achieve it than
simply being told "We are aiming for a Level 2.5". Vector alignment is not only about alignment, but it is
also a great opportunity to educate the workforce on the 20 Keys so that more and more the company
adopts a common improvement language which everyone understands.

Vector alignment is done by testing people's knowledge of the different levels of each of the 20 Keys.
For instance, what does it mean to be at a level 2.5 in Key 9? What does it look like? What is the OEE
score by then?

HOW IS VECTOR ALIGNMENT DONE?

Essentially, one wants to achieve a common understanding of the objectives of the company and make
sure that everyone is aligned to these objectives. This can be done in a number of ways. Two methods
are now described:

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HOW-TO STEPS

Multiple choice quiz method

Before the multi-level meeting

Step 1: Each Key Leader prepares multiple choice questions and answers regarding the
level that the company is aiming for in order to test people's understanding of the
target, e.g.:

Choose the correct answer to the following question:

In Key 9, we are aiming for level 2.5 at the end of this year. This means that:
A) OEE is above 50%. Operators fill in daily checksheets and artisans do periodic
inspections.
B) OEE is above 60%. No more unplanned stoppages occur. A training programme is
underway to get everyone involved in first-line maintenance of their equipment. Small
group activities focus on the elimination of minor stoppages.
C) OEE is above 55%. Most unplanned stoppages have been eliminated.
D) OEE is above 70%. All operators do their own lubrication and cleaning of their
equipment. Very few minor stoppages occur. Everyone has been trained in root cause
analysis and is using it on a daily basis.

In Key 10, we are aiming for level 3.0 at the end of this year. This means that:
A) Most people are still late for the morning meeting
B) Some people are still late for the morning meeting
C) People are late for the morning meeting with a good excuse
D) No one is late for the morning meeting.

Notes for drawing up the questions:

• The questions and answers should tie in with the items in the 3-item kit (see
section 4.5). The facilitator should state how many questions per Key should be
prepared - keeping in mind the amount of time available for the exercise at the
multi-level meeting
• Stick to a four-answer (A, B, C or D) multiple choice format to ensure user-
friendliness
• Write the question per Key in an easy form for everyone to understand. Use
simple sentences and words
• Make clear what the Key goals and targets are

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HOW-TO STEPS (CONTINUED)

• Use "key words" so that the important concepts of the Key are captured and
people can get a sense of what the focus of the implementation will be
• Do not put A to D in level order
• When preparing the answer sheet:
The sentences should reflect levels or intermediate levels only
Assign the appropriate level to each sentence
Provide hints for appropriate selection
Each image sentence should be similar in length.

Step 2: The 20 Keys facilitator does the following preparation:

• Integrates the questions into one document. This document is published one
week before the multi-level meeting to encourage debate.
• Plans how the workforce will be divided into vector alignment groups at the
multi-level meeting and appoints a group leader for each group - these groups
do not have to be mini-businesses, but could also be a mix of levels, functions
etc.
• Prepares the vector alignment sheet (see next page). Two large copies of this
sheet are made: one to be displayed on the wall of the multi-level meeting room
and the other to be cut up into strips - each team should get its own strip of all
20 Keys. See step 4 further on for more information on this.

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Better Faster Cheaper VECTOR ALIGNMENT SHEET

Group
Key Correct
1 2 3 4 5 6 7 8 Option

1 Cleaning and Organising to Make Work Easy A A B C D B A A A

2 Rationalising the System/Goal Alignment

3 Small Group Activities
4 Reducing Work-in-Process
5 Quick Changeover Technology
6 Kaizen of Operations
7 Zero Monitor Manufacturing/Production
8 Coupled Manufacturing/Production
9 Maintaining Machines and Equipment
10 Workplace Discipline
HOW-TO STEPS (CONTINUED)

11 Quality Assurance
12 Developing your Suppliers
13 Eliminating Waste
14 Empowering Employees to Make Improvements
15 Skill Versatility and Cross Training
16 Production Scheduling
17 Efficiency Control
18 Using Information Systems
19 Conserving Energy and Materials
20 Leading Technology/Site Technology
Note: Two vector alignment sheets are prepared by the facilitator, one is put on the wall, the other one is cut in strips and given to each group.
The plant manager’s option is displayed in the last column

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HOW-TO STEPS (CONTINUED)

AT THE MULTI-LEVEL MEETING

Below are examples of where vector alignment fits into the main multi-level meeting's
agenda.

EXAMPLE

a
a
v
v

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HOW-TO STEPS (CONTINUED)

EXAMPLE

a
a
v
v

l
v

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HOW-TO STEPS (CONTINUED)

Step 3: During the vector alignment sessions of the multi-level meeting, the questionnaires
are distributed to the various groups to be discussed and filled in using the 20 Keys
maps and other available material. Groups must also note down why certain Keys
are chosen.

Note: It is important that the person facilitating the sessions does not provide the
answers, but rather guides the team in its thinking. This should be a learning
experience for all involved!

Step 4: The facilitator gives each team its strip of the vector alignment sheet. The groups
write their answers (with a black pen) for every Key on a strip provided and stick
their strip onto the 'whole' vector alignment sheet displayed on the wall.

Step 5: For every Key, two to three groups are selected for short (30 seconds per group
per Key) presentations to explain why they selected their particular options (A, B,
C or D). To select the groups, the 20 Keys facilitator circles (with a red pen) the
group numbers which will make the presentations on the vector alignment sheet.
Select all opinions, for example, if the right answer was A, then choose groups who
answered A, C, D for presentations. Where all groups selected the same option
only two presentations can be selected

Group
Key
1 2 3 4 5 6 7
1. Cleaning and Organising A A B C D B A
2. Rationalising the System/Goal Alignment B B B C C D A
3. Small Group Activities

Step 6: After three presentations (on one Key) the senior manager says something (+1
minute), for example, why the right answer describes best what the company aims
for. The consultant can also briefly give input on some Keys. After the senior
manager's explanation on why an option was selected, the facilitator indicates the
(right) option on the vector alignment sheet by writing the option (for example, A)
with a red colour pen on the sheet (last column).

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Tips to make the presentations go as quickly and smoothly as possible:
• The consultant keeps time
• The facilitator calls presenters (group members) to present
• The first six presenters bring their chairs to where the sheet is displayed
• Every time a presenter goes up to the microphone, another presenter moves to the front to sit in
that chair

HOW-TO STEPS

Presentation method

Before the multi-level meeting

Step 1: The draft basic policy is published by the 20 Keys facilitator.

Step 2: Each mini-business prepares a short one minute presentation (per Key) of what
they believe their operation will look like once the target of that Key is reached.
This is submitted to the 20 Keys facilitator.

For instance for a Level 2.5 of Key 9:

"At a Level 2.5, we will be learning to do lubrication and clean our machines
ourselves and we will all be skilled at operating the machines properly. We will not
have to worry about unplanned breakdowns anymore, as we will be doing our daily
checks and periodic services of our machines. Our OEE would have improved to
above 60%."

Step 3: The 20 Keys facilitator works through the presentations of the team and selects
three teams per Key to present - these should be the best three descriptions of
each Key, but care should be taken to let each team do at least one presentation.

During the multi-level meeting

Step 4: The 20 Keys facilitator calls forward the teams that will be doing the one minute
presentations per Key. Strict time-keeping is applied and applause follows each
presentation.

Step 5: After three presentations (on one Key), the senior manager says something (+1
minute), for example, what he/she envisions for the company once the target has
been achieved. The consultant can also briefly give input on some Keys.

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4.6.4 Preparing for multi-level meetings

E.g. Key review

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LEARNING APPLICATION 9

Decide as a team when your first multi-level meeting must be held.

When should it be held?

Where should it be held?

What is the programme and what are the topics to be discussed?

Who should attend?

4.7 Key action plans

STRATEGIC AND BUSINESS GOALS

Overall Goals - Company and Departments

Overall Action Plan - Company and Departments

Annual Review Multi-level Meeting Mid-year Review

Action plans

20 Keys Progress Review Mini-business Review

3-Colour Goal Achievement Chart

(Monthly and Six-monthly)

20 Keys Benchmark
(Six-monthly)

Impact Projects

Follow up and recognise

achievements

Promotion Organisation

146 Facilitator's Manual

Different Keys are implemented at different levels. The diagram below is a guideline for the
development of action plans.

The chart below is a generalisation and the facilitator must allow for flexibility. The actual level of
planning depends on the size of sections; the number of people available for implementation and
follow up; the level of supervisory skill; etc. The content and level of the action plan will also vary from
year to year. For example, if WIP reduction was a theme for the first year, and as a result thereof WIP
within work groups was reduced, and we find there is still a lot of WIP between groups, then the focus
of WIP reduction in the second year will be placed at a higher level.

KEYS 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

A: Senior
Management

B: Middle
Management

C: First-line
manager /
Team leader

Primary responsibility for developing action plan

Should assist with developing or implementing the action plan

As we have mentioned, the overall implementation plan is for high-level planning at site level. More
detailed action plans are needed for each Key and for each team. In this section, we present an action
plan template which shows the action steps to be taken, and graphs, which help us to monitor whether
our actions are having the desired effect on our business goals. This is an important part of making the
CAPDo cycle rotate.

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148
Colour Action Plan Division/Section Loading Ref No: 1 Approved (sign)
Key Theme Responsible Person Team Members Preparation: 17 April 2007

1 Cleaning and Organising B Bassett S Harrris, R Jones, J White, 18 April 2007

H Charles, J Barry, I Mardi Approval:
Slogan Area Objective Evaluation Factor: Evaluation Factor:
April 2007 October 2007 April 2007 October 2007
EXAMPLE

Let's make cleaning and organising a habit Group A Making work easier

Making work safer

Aiming for
15 40 10 4

Improvement
Increase productivity with 4S

No Follow-up by Comments from

Action

July
Mar

May
June
Aug
Sept

April
Oct -
Responsible Person Manager

Person
1 Remove desk J.B. 4 Jan Obtain updated Safety Rules 5 Jan Complete training as soon as

13 Paint walls S.H. and Standards possible

6 Build trolley R.J. B Basset B Venter

9 Train team on Hygiene Rules and Standards I.M.

4 Update display board T.H.

4 Design racks H.C.

4 Build racks J.W. Key 1 Safety Near Misses

Checksheet Score Graph
50 14

45 12

40 10

35 8

30 6

25 4

20 2

15 0
Jul
Jul

Apr
Apr

Jun
Jun

Mar
Mar

Aug
Aug

May
Sep
May
Sep

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HOW-TO STEPS

The following steps should be followed when completing the Key Action Plan:

1. Indicate for which area the action plan is completed.

2. Indicate the title of the action plan, for example, Key 1 - Cleaning and Organising.

3. Complete the top section of the action plan with details about the team and responsible
person.

4. Indicate the starting point and target in terms of the checksheet score.

5. List all the actions required to achieve the target and the period by when they should be
completed. Make actions as specific as possible.

6. Evaluate progress made with actions and colour in actions completed with the colour
pink .

7. Calculate the 3-colour goal achievement and indicate the colour code in the space provided
on the action plan (top, left corner).

8. The manager of the responsible person can write helpful comments and feedback on the
action plan.

9. Once the action plan has been completed, the manager of the person responsible for this
action plan, should sign it off and add the date.

10. Update the action plan (actions, graphs, comments and colour achievement) every month.

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HOW-TO STEPS

Calculation of 3-colour goal achievement

There are mathematical formulas for calculating the 3-colour goal achievement. However, a
simple way is demonstrated below.

The first example is based on an increasing trend and the second one on a decreasing trend.

Example 1: Start score 15 and target score 40 (in this case checksheet points)

Step 1: Calculate the points on the graph for 50% and 80% goal achievement

(a) Deduct the start score from the target score 40 – 15 = 25

(b) Calculate 50% of (a) 50% x 25 = 12,5

Add to the start score of 15 15 + 12,5 = 27,5

(c) Calculate 80% of (a) 80% x 25 = 20

Add to the start score of 15 15 + 20 = 35

Step 2: Mark the 50%, 80% and 100% points on the goal achievement graph

The lowest point on the right hand

axis is the 50% goal achievement score = 27,5

The second point on the right hand

axis is the 80% goal achievement score = 35

The highest point on the right hand

axis is the target (100% achievement) score = 40

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HOW-TO STEPS

Step 3: Connect the above points to the start score of 15 and colour in with red, yellow and
green
50

45

40

35

30

25

20

15
Mar Apr May Jun Jul Aug Sep
Step 4: On a monthly basis, indicate the score on the graph. The colour achievement can then
be read from the graph, based on the colour band where it fits.

50

45

40

35

30

25

20

15
Mar Apr May Jun Jul Aug Sep

In the above example, the monthly score for the team was as follows:

Month Apr May Jun Jul Aug Sep

Score 25 (green) 25 (green) 25 (green) 25 (yellow) 30 (yellow) 35 (green)

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FREQUENCY
This action plan is drawn up once every six months at the multi-level meeting. It is then reviewed
monthly to see whether actions have been done and whether they are having the desired effect on the
chosen business measure. If not, the action plan is reviewed to add or change actions.

IMPORTANT INFORMATION

Action terms and abstract terms

Action Terms Abstract Terms X

Draw a white line Designate aisles
Make shelves and organise items on shelves Ensure items are not found on the floor
Determine work-in-process levels Reduce work-in-process
Draw a fishbone chart Grasp problems
Accomplish single minute changeover for
Reduce changeover time
(the number) machines
Draw a graph Improve quality

Pick up rubbish Keep clean

Conduct group discussions Work out actions
Objects, People x Actions Abstract Objects x Abstract Terms

In order to ensure that action steps are concrete, it is important to distinguish between action
verbs and the use of abstract terms. The more concrete, the better.

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4.8 Managing the 20 Keys to produce results

STRATEGIC AND BUSINESS GOALS

Overall Goals - Company and Departments

Overall Action Plan - Company and Departments

Annual Review Multi-level Meeting Mid-year Review

Action plans

20 Keys Progress Review Mini-business Review

3-Colour Goal Achievement Chart

(Monthly and Six-monthly)

20 Keys Benchmark
(Six-monthly)

Impact Projects

Follow up and recognise

achievements

Promotion Organisation

4.8.1 Mini-business review

Once per month, the mini-business (natural working teams - see Key 2) meets to review:
• Their achievement against their KPI goals
• Their achievement against the action plans.

This meeting is chaired by the manager of the mini-business, but he/she can also involve team members
as they become stronger and more empowered. If the team has already started using Key champions,
these champions can present their respective Key's progress.

Once the mini-business has reviewed its goals and plans, the results are given to the department
manager and the 20 Keys facilitator. The 20 Keys facilitator then compiles the 3-colour goal
achievement chart (see 4.8.3).

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4.8.2 20 Keys progress review

Once per month, the General Manager and his/her team should review the 20 Keys progress. This will
ensure that the CAPDo cycle rotates at least once per month. The agenda for this meeting typically
looks as follows:

1. Presentation of the 3-colour 20 Keys chart (see 4.8.3) - 20 Keys Facilitator

2. Departmental 20 Keys progress feedback and plans - Departmental Managers

a) Achievement against KPIs and Key score
b) Achievement against action plan

3. Follow-up/corrective action - General Manager

4. Celebration of stars - General Manager (20 Keys

facilitator prepares)

5. Request for Key leader/consultant support - Departmental Managers

6. General feedback - Key leaders and 20 Keys facilitator

IMPORTANT INFORMATION

Try not to create a new meeting for this, but rather try and build this review into an existing
meeting's agenda.

154 Facilitator's Manual

To aid visual management and make coordination of the programme easier, the below matrixes could
assist:

20 Keys Progress Chart

Workplace Month

1 2 3 4 5 6 7 8 9 10
Counter
Problems
3-Colour Evalua- Target Actual Target measure
Key Initial (during
Key Achieve- tion (for (for (for end -ment
Leader Value previous
ment Criteria month) month) of year) (for this
month)
month)

1
2
3
.
.
.

This chart must be completed by the responsible person for each action plan every month.

• Keys implemented in the particular workplace / area.

• Company Key leader for every Key implemented.
• 3-Colour achievement for every Key implemented.
• Evaluation criteria for every Key implemented.
• Initial values for the evaluation criteria.
• Targets for the evaluation criteria for the month.
• Actual values for the evaluation criteria for the month.
• Targets for the evaluation criteria for the end of the year.
• Problems experienced and reasons why actions were not completed during the previous year.
• Things to be done to counter problems and to complete actions. These are typically put on the
action plan for the year.

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KEY 1:
Better Faster Cheaper
CLEANING AND ORGANISING TO MAKE WORK EASY

30 35 40 45 50 55 60 60 65 65 70 75 75

Dept/ Date Date Date Date Date Date Date Date Date Date Date Date Date
Section/
Team 5/99 6/99 7/99 8/99 9/99 10/99 11/99 12/99 1/00 2/00 3/00 4/99 5/00
Score Score Score Score Score Score Score Score Score Score Score Score Score
Team 1

Team 2

Team 3

Team 4

Team 5

Team 6
Team 7

Team 8

Team 9
Team 10

Team 11

Team 12
Team 13

Team 14
Team 15

Team 16

Average

Facilitator's Manual
4.8.3 The 3-colour goal achievement chart

STRATEGIC AND BUSINESS GOALS

Overall Goals - Company and Departments

Overall Action Plan - Company and Departments

Annual Review Multi-level Meeting Mid-year Review

Action plans

20 Keys Progress Review Mini-business Review

3-Colour Goal Achievement Chart

(Monthly and Six-monthly)

20 Keys Benchmark
(Six-monthly)

Impact Projects

Follow up and recognise

achievements

Promotion Organisation

As the 20 Keys implementation accelerates, there will be more and more of a need to coordinate and
simplify the review of progress across the Keys and departments/teams. For this reason, the 3-colour
goal achievement chart was developed. At a glance, it gives us an overview of how it is going with the 20
Keys implementation.

One of the most powerful aspects of this tool is that, like many of the other 20 Keys management
system tools, it measures both INPUTS and OUTPUTS. In other words, it forces us to 'do the right
things' such as implementing best practice, doing change management, involving people, but it also
forces us to achieve results. The coloured blocks you see are a combination of 20 Keys
implementation progress and KPI achievement.

FREQUENCY
The 3-colour chart is used at the monthly 20 Keys progress review meeting as well as at the six-
monthly multi-level meetings. This chart is also updated on a monthly basis and visually displayed in a
central place for all to see. It is a very important motivator, so celebrate the champions!

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This chart is based on the 3-colour system of a traffic light where:

GREEN means > 80% goal achievement

YELLOW means 50% - 79% goal achievement
RED means <50% goal achievement

As can be seen in the example that follows, a goal achievement score is calculated PER KEY, PER
TEAM, PER MONTH.

We will use the example of the 3-colour goal achievement chart on the next page, to explain how goal
achievement is calculated.

EXAMPLE

Goal Achievement Matrix (3-Colour Evaluation Chart)

Group 1 2 3 4 5 6 7 8 9 10 11 12 13
KEYS TOTAL
Person A B C D E F G H I J K L M
11/13
1. Cleaning and Organising 100 45.5 97.9 100 100 93.9 100 100 100 100 100 100 67/7 (84.6)
10/13
2. Rationalising the System 50 0 100 100 100 100 37.2 100 100 100 100 100 100 (76.9)
6/13
3. Small Group Activities 100 79 95 100 100 89.7 65.8 65.5 69 67 98 73 74 (46.2)
6/13
4. Reducing Work-in-Process 100 60 100 33 100 5.4 100 67.4 0 33 100 85 39 (46.2)
6/13
5. Quick Changeover Technology 48 0 91 100 100 77 60 60.2 60 67 100 100 100 (46.2)
10/13
6. Kaizen of Operations 100 63 100 85 100 0 89.5 100 72 92 100 85 99 (76.9)
9/13
7. Zero Monitor Manufact/Prod 56 75.9 10 100 100 55.6 100 100 22 100 100 100 82 (69.2)
11/13
8. Coupled Manufacturing/Prod 81 50 100 100 100 100 100 100 100 100 100 40 100 (84.6)
6/13
9. Maint Machines & Equipm. 37 93.5 78 50 83 50 63 100 97.5 43 100 100 66 (46.2)
10/13
10. Workplace Discipline 100 33 81 100 87 100 100 80 80 83 100 50 10 (76.9)
11/13
11. Quality Assurance 73 100 95 100 100 82.3 80 86 80 100 100 100 100 (84.6)
6/13
12. Developing your Suppliers 100 100 100 0 64 100 0 0 0 10 80 100 30 (46.2)
10/13
13. Eliminating Waste 100 0 93 93 23 100 64 100 100 86 100 100 100 (76.9)

14. Empowering Employees to 11/13

100 45.5 97.9 100 100 93.9 100 100 100 100 100 100 67/7 (84.6)
make Improvements

15. Skill Versatility and 10/13

50 0 100 100 100 100 37.2 100 100 100 100 100 100 (76.9)
Cross Training

6/13
16. Production Scheduling 100 79 95 100 100 89.7 65.8 65.5 69 67 98 73 74 (46.2)
6/13
17. Efficiency Control 100 60 100 33 100 5.4 100 67.4 0 33 100 85 39 (46.2)
6/13
18. Using Information Systems 48 0 91 100 100 77 60 60.2 60 67 100 100 100 (46.2)
10/13
19 Conserving Energy and Materials 100 63 100 85 100 0 89.5 100 72 92 100 85 99 (76.9)
9/13
20. Leading Technology/Site Tech. 56 75.9 10 100 100 55.6 100 100 22 100 100 100 82 (69.2)

Green: 80% and above 12 3 17 16 18 11 11 13 9 12 20 16 11 169

Yellow: 50 - 79% 5 9 1 1 1 6 6 6 6 4 0 3 5 53
Results
Red: 49% and below 3 8 2 3 1 3 3 1 5 4 0 1 4 38

Rate of Green by Group 12/20 3/20 17/20 16/20 18/20 11/20 11/20 13/20 9/20 12/20 20/20 16/20 11/20 169/260
(%) 60 15.0 85.0 80.0 90.0 55.0 55.0 65.0 45.0 60.0 100 80.0 55.0 65

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HOW-TO STEPS

Calculation of the monthly goal achievement review

1. Get each team's actual achievements of their company goals (KPIs), as well as their
actual achievement of their Key goal. The latter is measured by using the checksheets
for the Keys.

2. The 3-colour graphs are shown below. These graphs are used to visually track progress
against goals, on a monthly basis, in mini-business areas. The examples below belong to
that of Team 7.

3. The 3-colour goal achievement chart on the previous page is for October 2008. Let's say
that it is Month 10 of the financial year, (this is not always the case). Team 7 scored 84%
goal achievement for Month 10 on the 3-colour goal achievement graph. How was this
calculated? Looking at Month 10 of Team 7's productivity graph, we see that the actual
performance was in the green range. When we divide the actual performance by the
target for that month, we discover that they achieved 86% of their goal.
Productivity Improvement
Productivity Improvement
GROUP
TEAM 77
33

32
Tons per manhour

31

30

29
1 2 3 4 5 6 7 8 9 10 11 12
Months

>= 80% goal achievement >= 50% goal ac

hievement
< 50 % goal ac
hievement Actual Performance

On their Key 6 graph they were also (barely!) in the green for Month 10. When we
divide this actual performance by the target performance, we see that their goal
achievement was 81%.
Key 6 6Checksheet
Facet Score
Checksheet Score
TEAM 7
GROUP
30

25
CHECKSHEET POINTS

20

15

10

0
1 2 3 4 5 6 7 8 9 10 11 12
Months

>= 80% goal achievement >= 50% goal ac

hievement
< 50 %goal ac
hievement Actual Performance

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HOW-TO STEPS (CONTINUED)

4. When the different goal achievements for the Key have been calculated, the overall goal
achievement for that Key is derived by calculating the average of the different goal
achievements. e.g. (81%+86%) / 2 = 83.5%, which was rounded up to 84%.

5. When only a checksheet score is used, that is the only score considered. If there are
three goals for a Key, the average is calculated between the three goals.

The 3-colour chart can be used to highlight the following issues:

• Why are some teams/departments making faster/slower progress than others?
• What teams/departments need support and training (red and yellow)?
• Is the organisation improving its ability to set realistic goals?
• Is the organisation improving its ability to adhere to its plans and goals?

Important questions to consider when starting with 3-colour charts are:

• Where should the 3-colour chart be displayed?
• How many 3-colour charts should be compiled?
• Who should keep it up to date?
• Who should review progress?
• How can good progress be recognised and motivated?

EXAMPLE

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EXAMPLE

Further notes on the 3-colour chart:

• If there is only a checksheet score (e.g. Key 1) the goal achievement percentage is determined in
colour code accordingly.
• If there is a checksheet score as well as one other evaluation factor, the goal achievement
percentage for both is calculated and the goal achievement percentage for the Key is then reflected
as the average of the two percentages. The goal achievement colour for the Key and the 3-colour
chart is based on this calculation.
• If there is no checksheet score as an evaluation factor (i.e. all Keys except 1, 2, 9, 10, 11 and 17), the
following method is used:
• Should there only be one evaluation factor such as “productivity” in Key 6, the goal achievement
percentage and colour code is calculated accordingly.
• Should there be two or more evaluation factors such as for Key 3 (number of implemented
suggestions and number (or percentage) of completed themes), the goal achievement
percentage for both factors is determined and the average of the two is reflected on the goal
achievement matrix.

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Scoring the goal achievement matrix
• Seeing that the checksheets for Keys 2, 9, 10, 11 and 17 are only scored every two months, the
score for the previous month should be used for the alternative month.
• A benchmarking exercise, where all 20 Keys are measured, is undertaken every six months. (For
this exercise maps are used for all the Keys, except Keys 1, 2, 9, 10, 11 and 17, where checksheets
are used).
• Six-monthly map benchmarks are not used in the calculation of the goal achievement but to update
the radar chart. Goal achievement is based on evaluation factors only.
• We should therefore limit the evaluation factors to two (where one, in the case of Keys 1, 2, 9, 10,
11 and 17, is the checksheet score).
• This will force people to choose the strongest evaluation factor (or a combination of a few).

Scoring the goal achievement matrix

= > 80% (Some companies specify green as 100% goal

achievement)
= 50 – 79%

= < 50%

• Colours, red, yellow and green are calculated on the action plan and then transferred across to a 3-
colour chart and are determined according to the evaluation factors for each Key.
• Keys can have more than one evaluation factor, depending on the Key.
• Keys 1, 2, 9, 10, 11 and 17 use the checksheet score as an evaluation factor. (Dr Kobayashi points
out that generally the only evaluation factor for Keys 1, 2, 10 and 17 is the checksheet score,
although we noticed that he used Attendance % (as the second evaluation factor for Key 10) and
Efficiency % (as the second evaluation factory for Key 17).)
• Evaluation factors can vary over time, for example, in the case of Key 11 one might want to measure
(combined with the checksheet) “customer complaints” for a period and thereafter “re-work”.
• It is recommended that only one key measure be selected per Key and that such a measure be set
for a period of at least six months (preferably 12 months).

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Purpose of radar chart vs. 3-colour chart

20 1 2
19 5 3

18 4 4
3
17 5
2 Indicates constitution
1 or ability of the company to
16 6
compete in the world
15 7

14 8

13 9
12 11 10

Indicates overall
performance of the
company

4.9 Impact projects

STRATEGIC AND BUSINESS GOALS

Overall Goals - Company and Departments

Overall Action Plan - Company and Departments

Annual Review Multi-level Meeting Mid-year Review

Action plans

20 Keys Progress Review Mini-business Review

3-Colour Goal Achievement Chart

(Monthly and Six-monthly)

20 Keys Benchmark
(Six-monthly)

Impact Projects

Follow up and recognise

achievements

Promotion Organisation

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4.9.1 Introduction

The 20 Keys was created to help us achieve our business objectives in a holistic and sustainable way.
Although the approach is to strengthen the capability of the organisation to continuously improve, this
approach cannot be an end in itself. It must deliver bottom-line results, and it must start doing this
from a very early stage. For this reason, we will also be driving impact projects from the very beginning.

Impact projects are projects aimed at:

• Converting 'low hanging fruit' opportunities into improvements
• Solving current problems.

IMPORTANT INFORMATION

Impact projects last about six to eight weeks. We want to make an impact quickly. This means
that we need to select the right project, the right people and give it the necessary focus and
support that it needs.

Impact projects are done by using a 20 Keys-aligned approach and 20 Keys-aligned practices. In
this way, we will ensure that the improvements we make with the impact projects are
sustainable and holistic.

4.9.2 Identifying improvement opportunities

There are a number of ways in which to identify improvement opportunities. Sometimes the
operations team just knows; they know where to focus and what to do, they just need the time and
opportunity. If things are not this apparent, any of the following techniques can be used:

Value Stream Mapping - described in detail in Key 6. This technique maps out the whole process,
indicating where value is generated and where it is not. The next step in the process is to eliminate or
reduce non value-adding opportunities and to optimise necessary support activities.

What Makes Work Difficult?" workshops - described in Key 3

This is an easy technique and is effective in getting as many as possible opportunities on the table. You
simply bring a first-line team together and ask them "What makes work difficult?" Seeing that they are
the ones directly adding the value in our value stream, it is important that we make it as easy as possible
for them. We can ask this question in terms of:
• Quality (What causes you to make mistakes?)
• Cost (What causes you to waste time, money, effort, materials, etc?)

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• Delivery (What causes you to be delayed? Or ,deliver late?)
• SHE (What causes you to work unsafely, harm the environment?)
• Morale (What causes you to feel demotivated?).

Once all these ideas are on the table, they have to be prioritised in terms of Quick/Slow Impact and
Big/Small Impact.

Analysing existing information. By looking at sets of information from various angles, we are able to
identify improvement opportunities and priorities. This could be production information,
maintenance information, industrial engineering information (activity sampling, process flows, etc.). 6
Sigma is a very powerful approach - see Key 11.

IMPORTANT INFORMATION

Criteria for selecting impact projects

• It is important that the selected project has potential to show results in a short period of time
• For instance, a project to increase availability of a forklift can show results almost from day
one. A project to increase plant capacity, by installing a new machine, may take months to
realise and is therefore not a good candidate
• However, also allow for some impact projects which might go beyond the six week period.

4.9.3 Conducting impact projects

4.9.3.1 Impact project methodology

Preparation 4 Weeks: 1 hour per day

Day 1, 2 Day 4, 5

Week 1 Week 2 Week 3 Week 4 Week5 Week6

Start Stop
Six Week Project

The process typically takes place over a period of six weeks with four full day workshops.

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HOW-TO STEPS

Step 1: Preparation before the start of the project

The preparation for the impact project is done by the 20 Keys facilitator (and later in
conjunction with the project leader). The facilitator coordinates and starts the
project. His/her role is not to lead the team, but merely to support the team in
making the biggest impact possible. The role of the facilitator, in the context of the
impact project , could be described as follows:
• Do preparation for project (with project leader)
• Facilitate workshops and review sessions (with project leader)
• Bring energy and motivation to the team
• Maintain focus on the issues at hand
• Stimulate critical evaluation of current practices - ask "difficult" questions to
challenge the way of thinking
• Be impartial and not involved in internal politics
• Ensure that workshops take place as scheduled.

Preparation for the impact project includes the following:

1. Select the project leader.
The role of the project leader can be described as follows:
• Leadership position and direct involvement
• Responsibilities:
Drive the project together with the facilitator
Can approve the implementation of "out-of-the-box" solutions
Provide feedback to senior management throughout the project
Follow up on outstanding issues and report back.

2. Prepare material. This includes securing the venue, access to network

computers, printers, etc.

3. Finalise responsibilities for data collection. Ensure that the people responsible
for data collection understand why they are collecting the information - this will help
them to make certain judgement calls when faced with difficult situations. The time
spent studying a process is often also very insightful - if people know what they are
looking for, it will make the whole process more valuable.

4. Finalise the team

The members of the team must be selected very carefully because the quality of
the solution depends on the team. The people involved will depend on the topic -
get the right specialists involved, but especially, get the people working in the area
involved - they hold important clues as to when and why things go wrong and they
know exactly what happens in their areas.

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HOW-TO STEPS (CONTINUED)

The ideal team size is about five to seven people and some teams may have one or
more persons assigned to the project on a full-time basis, depending on the
particular project. The other team members continue with their normal daily
responsibilities.

5. Organise the project kick-off workshop and finalise project dates.

6. Do any data collection required before the workshop or project. This

might be necessary to 'narrow down' opportunities (prioritise) or to verify the
fact that a problem exists. The topic selected for the impact project might also
need more information than what can be gathered in six weeks.

7. Communicate the start date and completion date of the project to the
team and management.

Step 2: Two-Day workshop

• Invite senior management to set the tone as early as possible during the day
• Communicate the purpose and topic
• Goal alignment in specific and financial terms
• Explain the impact project process
• Team training on techniques such as Kaizen, value stream mapping, seven wastes,
Quick changeovers, QC tools, etc.

Step 3: Implement and review progress

• One-hour workshops over a period of four weeks. These one-hour workshops
follow the following agenda:
Review yesterday's performance statistics
Follow up on the action plan
Discuss the next action on the action plan.
• Practical pointers for one-hour meetings:
Daily improvement brainstorming sessions should be limited to one hour
Start on time and end on time
Hold the meeting the same hour of the day every day
Keep updating the action plan as new problems arise
Drive the action plan - check if tasks are completed and encourage the team to
implement actions as quickly as possible
Create a list of improvements that were implemented
Where relevant, bring in specialists to assist with specific issues
Evaluate new statistics during every session - short interval reporting.

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HOW-TO STEPS (CONTINUED)

The first one-hour session will differ as the team will need to be introduced to the
procedure. At the first session, the facilitator will need to explain to the team how
the sessions will work and emphasise the 60 minutes and six week time factors. The
rest of the first session can then be spent on briefly discussing each graph /
measurement that is displayed
• All team members should understand the statistics
• Give the team the opportunity to comment and ask questions about the
measurements
• In later sessions the team members will participate more.
When the team understand the measurements, the first action can be discussed. As
soon as the team has formulated a solution or action, write it on the action plan. A
volunteer is to take responsibility for completing that task at an agreed date - this
person's name and the date are added to the action plan.

IMPORTANT INFORMATION

Remember that there are only six weeks to make an impact - evaluate
planned completion dates for the actions carefully.

The project leader and facilitator need to give informal interim feedback to
management on a weekly basis. This will keep management updated on progress,
which will enable them to provide the necessary support and advice.

Step 4: Finalise and prepare for presentation to management and team

members.

This is done during Day 3 (workshop 2, day 1) of the project. During this step, the
following preparation needs to be done:
• The facilitator and project leader must prepare the framework for the final
presentation
• Team members must prepare graphs, photos, demonstrations, etc. that will be
used in the final presentation
• The bulk of the presentation should be prepared before the end of Day 3
• The outstanding problems at this stage in the project are usually complex /
require management decisions. Prioritise and discuss unresolved issues
• Prepare a proposal for the implementation of solutions
• Add final details to the content of the presentation
• Do final preparations for presentation to management.

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HOW-TO STEPS (CONTINUED)

Step 5: Presentation to management and team members

On the last day of the six-week period, a presentation is made to management and
colleagues who were not involved in the project. This is a formal final presentation by
the team and the total meeting should take about two to four hours. The
presentation is followed by management feedback to the team, during which time
management also gives approval for the implementation of corrective actions for
unresolved issues. An action plan should be created for these issues - specific team
members should take responsibility for implementing these actions.

Step 6: Follow-up with implementation

Except for implementing the action plan for unresolved issues, the team should
monitor the improvements made to ensure that the improved performance is
sustained now that the focus is lifted. This will ensure an effective CAPDo cycle
rotation. The project leader should take responsibility for ensuring that the
performance is sustained and must give formal feedback to management after three
months (and thereafter) until all outstanding issues are resolved and we are
confident that the improved performance is sustained.

The impact project methodology discussed above is summed up in the diagram below:

PRESENTATION FOLLOW-UP PREPARATION PLANNING FOR

IMPLEMENTATION
• Training in what waste is
• Train in impact project
Methodology
• Analyse fact base
WORKSHOP 2 WORKSHOP 1
DAY 2 C DAY 1
• Visualise/map the progress
• Training in tools/
techniques
D A
FINALISE AND WORKSHOP 2 WORKSHOP 1 PLANNING FOR
PREPARE FOR DAY 1 P DAY 2 IMPLEMENTATION
PRESENTATION
• Visioning exercise
• Discuss final issues IMPLEMENT AND • Identify improvement
• Prepare for presentation REVIEW PROGRESS opportunities
• Set improvement targets
• Implement Actions
• Draw up action plans
• Review Progress
• Update Plan

WORKSHOPS: 1HR PER DAY FOR 4 WEEKS

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4.9.3.2 Critical success factors for an impact project

Senior management involvement

Set specific measurable objectives

Focus - following the impact project process

Team commitment

Success Good fact base

4.9.3.3 Monitoring the impact

A very important part of the impact project is monitoring the impact that it has on the bottom-line or
the Key Performance Indicator that was targeted for improvement. This will depend on the availability
and quality of baseline data. Although it is important to monitor the available information, care should be
taken to remember that the purpose of the project is to make an impact, NOT to prove an impact. If the
team is convinced that a project will make an impact, but it will be difficult to measure the impact, they
should go ahead with the project, regardless. However, there is always something that can be measured,
even though it is not where the main impact lies. However small the improvement, measure it!

In most cases, enough information should be available to be measured, in order to prove an impact and
here a specific person in the team should be appointed to update the information daily in the team
meeting area. The information should be displayed here.

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Case Study - Measuring Impact at Wispeco Aluminium

Wispeco Aluminium used the impact project methodology to great effect. They thought about a
good way in which to measure the impact of projects - they called it GREEN and BLUE Rands.

• Green Rands is money saved on the bottom-line. If the impact made can be seen on the
Income and Expense Statement (no matter how big it is), it is termed to be green Rands
saved.

• Blue Rands is an efficiency or utilization or effectiveness improvement that might not yet
translate into an impact on the Income and Expense Statement. This is an impact that puts
money 'in the bag', but not necessary 'in the bank' yet. It could be that the efficiency of a
machine was improved, but that this machine is not the slowest machine in the process -
this means that an impact was made, but not on the total throughput of the plant. This type
of saving could be 'cashed' in future, but not necessarily right now.

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chapter 5
FACILITATOR´S MANUAL

Maps, Checksheets
and Benchmarking
Guidelines

This chapter contains the maps and the checksheets of the 20 different Keys. In essence, these tell the
story of the journey that must be traveled in each Key.

What you will find on the following pages:

Maps: These are easy-to-use and easy-to-understand illustrations of the journey to world class in
each Key. The maps are used for training, benchmarking and as a reference to determine next steps.
The maps contain the original, fundamental concepts and principles and should not be changed.

Checksheets: The checksheets are used in benchmarking and contain specific items as criteria for
the different levels. As with the maps, these checksheets contain the original, fundamental concepts
and principles and should not be changed.

Checksheets for indirect departments: These are the original checksheets, translated for use in
service environments.

Benchmarking: Questions to ask ad things to look for - these are guidelines for the person doing the
audit or benchmark, to help them look for the right things and to ask the right questions.

Section 4.3 contains the benchmarking schedule that explains when and how benchmarking should be
done.

Award criteria for Level 3 or Level 3.5: These criteria are used when a company is aiming for the
Excellence or bronze Awards. These are very prestigious awards and therefore it is important to
make sure that the implementation has been thorough and effective.

172 Facilitator's Manual

Level 1 4S in the 20 Keys programme is not something imposed
To Increase Productivity Map No.1 1
on you, but something that helps you because these tools
make your job simple and easy. The first step is to build
Cleaning & Organising company-wide common understanding and then to
steadily climb from level 1 to level 5. 4S is the basis of
Seiri (Sort and order), productivity improvement as it links with the other Keys
included in the programme. During the course of its
Seiton (keep place in order), implementation, you may also see improvement in the
Seiso (Clean up), other Keys. This is due to the linkage effect between all
Selketsu (Maintain cleanliness). the Keys, which in turn is an indication of adequate
spreading of 4S throughout the workplace. 4S makes
4 S to make your job easier! your work easier and more meaningful.
Illustrated by Adachi Architects Ateller Iwao Kobayashi, President PDI

Level 5
Level 2

Organisation Development International Tel +27 12 665 0999

Facilitator's Manual Chapter 5: Maps, Checksheets and Benchmarking Guidelines

Level 3 Level 4

Revised 08/2001
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ORGANISATION DEVELOPMENT
© PPORF Development Institute, Tokyo Japan

173
174
Better Faster Cheaper
CHECKSHEET:
KEY 1: CLEANING AND ORGANISING TO MAKE WORK EASY
No. Category Level Evaluation Criteria Judgement Calls /X
Putting away unneeded No unneeded items lying around. There are no cigarette butts, pieces of scrap paper, tools, files, machines, materials and parts that are not
1 items
2 used for months or years.
Floor cleaning Cleaning equipment is stored neatly / everything has its place. Cleaning tools are stored near the shopfloor. Brooms are hung properly so that the edges are not
2 touching the floor.
There is no garbage, dirt or paper on the floor. There is no danger of slipping and no The floor is clean of iron scraps, water and oil so that operators do not have to walk in dirty areas.
3 trash in floorwells. There is no danger of slipping.
Display boards No outdated, torn, or soiled announcements are displayed. Papers are straight and There are no outdated, torn or soiled announcements on the display board. All announcements are
4 neat. There are no torn corners or tape marks left over from old displays. clearly displayed.
Emergency access Nothing is obstructing access to fire extinguishers and water hoses. Nothing is in front Nothing obstructs access to fire extinguishers, water hoses, emergency exits, walkways and crossings.
5 of emergency exits or corridors. Location and use of switches and breakers are posted. Fire extinguishers can be seen from 20 metres away. Use of switches and breakers are indicated. There
Zebra marks are painted on safety risk areas. are no foreign objects in electrical switchboards, ashtrays or garbage cans.
Items on the floor Work-in-process and tools are not placed directly on the floor. Operators do not have to bend over to load materials on the cart to go to the next operation. Large
6 materials are placed on pallets.
Walkway maintenance Nothing is placed on painted lines, and nothing extends over them. The layout of Nothing is placed on or extends over painted lines. Walkways are used as arteries of physical distribution.
7 3
walkways is satisfactory.
Walkways can be found at a glance and are aligned at right angles. Painted lines marking Painted lines are not chipped or soiled. Operators are satisfied with walkways in the current plant
8 walkways are not chipping off and are not soiled. layout.
Storage and stacking Items are stored and stacked properly in containers, and they are not placed directly on Cardboard boxes and plastic containers are stacked properly, and there is no danger in using and
9 methods the floor. transporting them.
Cleaning of machines, The factory and equipment are painted. There are no places in the factory (less than 2 The factory and equipment (less than 2 meters) are painted with a specific colour. There is no chipping of
10 meters on vertical surfaces) that are not painted. paint.
11 Structures and fixtures Machinery, platforms, carts, equipment and walls are not soiled. Machines, shelves, lockers, walls and equipment are not dirty with dust, rust or grime.
Nothing leans against walls, windows, pillars or equipment. Nothing leans against walls, windows, pillars or machines. Nothing is placed on and under shelves and
12 lockers.
Perimeter area cleanliness The department controls and cleans the area on the inside of the factory fence for The department cleans a 1 meter area outside of the assigned areas. Gutters around machines and
13 which it is responsible. factory buildings and toilets are also clean.
Maintenance of work-in- Desks, carts and pallets are parked/laid straight.
14 4 Empty and loaded carts and pallets are parked properly in appointed areas.
process
Storage places are clearly shown with sign panels. Inter-process coupling points (stores) are conveniently set up for customers (inventories are organised,
15 stored parallel and labeled clearly).
16 Arrangement of tools Storage places of tools are clearly shown with sign panels. Tools are placed on panels near machines and equipment for ease of use in placement and retrieval.
17 Necessary tools and jigs are placed in each shopfloor area. Necessary tools and jigs are conveniently arranged.
Organising desks and All shelves and desks are partitioned and labeled so that it is clear where things are and Tools, parts, gauges and papers are clearly organised in drawers according to their functions. All desks,
18 shelves where things should be returned to. workstations and stands comply with the requirements of model desks.
19 All shelves and desks are organised according to these partitions and labels. All shelves and desks are clearly labeled so that stored things can be found easily.
20 There are no unused files or documents on top of desks or working surfaces. Top of desks and working surfaces are clean from previous day's work.
Eliminating causes of dirt 5 Causes of dirt and disorder are eliminated. Special carts to hold work-in-process are Causes of dirt and disorder are eliminated. Special carts to hold work-in-process are utilised. All
21 and disorder utilised. Each employee can do 4S by him-/herself. employees do 4S by themselves automatically.
Marking stock levels Quantities are marked clearly like a supermarket.
22 Parts are systematically stored and there is an ordering process whereby parts are automatically ordered
clearly
when necessary.
Establishing disciplines Earning over 100 points on the Key 1 checksheet even during surprise inspections. It is possible to earn over 100 points on the checksheet even during surprise inspections.
23
= 5 Fully meets requirements X = Needs improvements
Score 0 1-15 16-30 31-50 51-70 71-85 86-100 101-110 All items
20 Key Level 1 1,5 2 2,5 3 3,5 4 4,5 5

Facilitator's Manual
SUPPLEMENTARY CHECKSHEET
Better Faster Cheaper
KEY 1: CLEANING & ORGANISING TO MAKE WORK EASY

No. Level Evaluation Criteria Judgement Calls /X

1 2 No unneeded items lying around. There are no items without clear identification labels lying around.
No items are covered in dust.
No unneeded items are lying on top of shelves.
There are no items lying around that have fallen off shelves, or which are leaning against windows.
Nothing on shelves has fallen over.
There are no unneeded items on desks and in drawers.
There are no unneeded documents on shelves.
Cleaning equipment is stored neatly / everything has its place. Cleaning equipment is available at the point where it is needed.
2
There are brooms and dustbins located in each area.
Dirt should be cleaned up immediately.
A closed cupboard is not recommended for cleaning equipment. Rather hang equipment up from a fixed hook. A broom
cart with wheels is recommended in some areas.
Old brooms should regularly be replaced.
There is no garbage, dirt or paper on the floor. There is no danger of slipping and no trash in All leaks should be fixed. Look out for any oil leaking from hydraulic joints.
3 floorwells. There should be no oil on the floor.
Oil soaked cloths should not be lying around.
There should be no slippery surfaces.
No debris from a press or similar equipment is lying on the floor.
Connect a dustbin to a worktable to prevent debris from falling on the floor.
No loose screws or other consumables are lying on the floor.
There is no dirt on the floor, and the floor is painted everywhere.
No outdated, torn, or soiled announcements are displayed. Papers are straight and neat. There There should be no outdated documents on bulletin boards.
4
are no torn corners or tape marks left over from old displays. There is no overlapping on display boards.
All four corners of documents are pressed down.
Documents are only posted on display boards.
No documents should be posted on doors or windows with cello tape.
Documents are organised in straight lines.
No unnecessary documents are posted on the side of desks and shelves.

Facilitator's Manual Chapter 5: Maps, Checksheets and Benchmarking Guidelines

Documents that are not on a display board are framed with tape.
Nothing is obstructing access to fire extinguishers and water hoses. Nothing is in front of Signs for fire extinguishers and fire hoses should be seen from 20m away.
5 emergency exits or corridors. Location and use of switches and breakers are posted. Zebra Fire extinguishers must be properly signposted.
marks are painted on safety risk areas. Doors of places where fire hoses are stored can be opened easily and there is enough space around them.
There are no foreign objects (like bolts or paper) in electrical switchboards, ashtrays or garbage cans.
Separate bins are provided for different types of rubbish and waste.
Work-in-process and tools are not placed directly on the floor. Nothing should be placed on the floor to prevent double handling.

Revised 08/2001
6 Tools must be set up close to machines and be replaced after use.
No one should be searching for tools, even when a new person is doing the job.
Tools must be placed in designated areas close to machines even when machines are not operating.
Nothing must be placed on the floor, as it becomes an obstacle.
Make use of a cart to shorten transportation distances. Keep carts close to the point of use.

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7 3 Nothing is placed on painted lines, and nothing extends over them. The layout of walkways is Nothing should be placed in such a way that it will be an obstacle in case of an emergency.
satisfactory. Nothing should extend over painted lines.

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Nothing should touch a person's body when walking within painted areas.
Fire extinguishers must be placed in their own designated areas.

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SUPPLEMENTARY CHECKSHEET
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KEY 1: CLEANING & ORGANISING TO MAKE WORK EASY

No. Level Evaluation Criteria Judgement Calls /X

8 2 Walkways can be found at a glance and are aligned at right angles. Painted lines marking walkways Aisles are appropriate and take logistics into account.
are not chipping off and are not soiled. There should be a set of rules in the company in terms of the width of carts, pallets and forklifts.
The width of walkways is standardised. A guideline is that main aisles should be 100mm wide and sub-aisles 50mm.
The width of lines and aisles comply with company standards.
Layout of aisles is done by straight lines.
Aisles along walls have painted lines on both sides.
These lines are maintained on a regular basis. Lines should not be stepped on.
Aisles should also be made in offices.
Desks should be lined up straight.

9 Items are stored and stacked properly in containers, and they are not placed directly on the floor. Cardboard boxes and work-in-process are placed in a straight line.
Nothing in cardboard boxes is placed directly on the floor.
See if it is possible to place parts directly into a cart when received from the supplier.
Nothing should be on the top of cupboards to eliminate unnecessary handling.

10 The factory and equipment are painted. There are no places in the factory (less than 2 meters on Paint, wipe and clean as needed.
vertical surfaces) that are not painted. Painting and cleaning up to a level of 2 meters can be done without a ladder.
There is a system in place to keep walls clean.
Walls have support columns so that pallets and products do not touch the wall, even when pushed right to the end.
Nothing is posted directly onto walls with pins.
There are no shoe marks on columns or walls.
11 Machinery, platforms, carts, equipment and walls are not soiled. Machines are not covered in dust.
Oil or other objects around machines or on shelves do not cause dirt.
Machines are periodically painted and kept clean.
No cutting chips and dirt have been lying around for a long time.
12 Nothing leans against the walls, windows, pillars or equipment. Nothing that can dirty walls is leaning against it.
The department controls and cleans the area on the inside of the factory, fence for which it is Confirm that all areas in the building will be subject to a 4S patrol.
13 responsible. There are no unnecessary items or rubbish within 1m of outside walls (roads, stairs, corridors).
Where workplaces have no outside walls, ditches and bottoms of columns are clean.
Desks, carts and pallets are parked/laid straight. There are designated areas inside aisles to place items in a straight line.
14
Desks must be placed straight. This is made easy by demarcation, for example, lines.
Storage places are clearly shown with sign panels. Work-in-process parts and pieces are placed in stores.
15 4 Stores are designed in such a way that is easy to retrieve parts.
Level 3 stores may not have re-order levels and control boards yet, but Level 3.5 stores must have it.
Inventory is clearly labeled and kept to a minimum, without shortages occurring.
Stock is retrieved on a first-in, first-out basis.
Storage places of tools are clearly shown with sign panels. Frequently used tools are placed on a cart to avoid searching or having to take them out of a toolbox.
16 Tools are easy to use according to MODAPTS principles.
Necessary tools and jigs are placed in each shopfloor area. Tools are placed at the point where they are required.
17 All machines are equipped in this way.
All shelves and desks are partitioned and labeled so that it is clear where things are and where All desks and worktables are certified model desks and worktables.
18, things should be returned to. Everything is within easy reach and there is no waste of searching.
19 Desks are always kept clean.
&
20

Facilitator's Manual
Benchmarking: Questions to ask and things to look for

Key 1: Cleaning and Organising to Make Work Easier

Questions to Ask /X
What is the purpose of Key 1?

What is the 4S process? How do you use it?

Do you use the 5 Whys? How?

Do you use the 5 Whys? How?

Where are your storage areas (for work-in-progress and tools)?
Which tools do you use? Is it stored close to your workplace?
What is Modapts? Have you used it? How?
How (and where) do you dispose of waste?

What to Look For /X

Floors (clean, no unneeded things lying around, no work-in-progress and tools on floors)

Cleaning (floors, walls, machines/equipment)

Stacking (safe, organised, not against walls and pillars)
Visual demarcation (machines/equipment, walkways, fire extinguishers, stores,
tools, escape ways)
Machines/equipment (clean, painted, safe, demarcated)
Obstructions (of equipment, walkways, escape ways, fire and emergency equipment)

Display boards (no old displays, neatly organised)

Storage places, desks and shelves (organised, partitioned, labeled, no unneeded things)

Cleaning materials (organised)

4S Level 3/3.5 Workplaces (4 criteria)

Action plan

Award criteria for Level 3 or Level 3.5 – Key 1

• Historical progress graph of checksheet score from kick-off
• Every area of the factory must be level 3.5, also outside the factory
• Checksheet score is over 85
• There is no hidden room or area that is not 4S reviewed
• All desks and work areas are model desks; All stores are level 3.5; more than 55% is single
changeover and single minute file retrieval = criteria for 4S level 3.5
• At all workplaces there is a “4S Level 3.5 Workplace Certificate”
• There are many photos of Kaizen improvements

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178
Level 1 Even if the company is working towards its goal, and the
To Increase Productivity Map No.2 2 goal is communicated from the top to the bottom
through each level, it is often hard to get everyone to
cooperate and be aligned towards that goal. If
someone thinks of just attaining his own goal, and
pushes others aside, the whole goal can never be
Rationalising the System / achieved. Help others and be helped by others, and
Goal Alignment then you can achieve your goal. Management and
employees should collectively think of the company
Matching top down and bottom-up
goals. They should then work towards attaining these
management and streamlining the organisation
goals. The matching of top-down and bottom-up
management enables your organisation to be responsive
Illustrated by Adachi Architects Ateller Iwao Kobayashi, President PDI
to any changes.

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Facilitator's Manual
CHECKSHEET:
Better Faster Cheaper
KEY 2: RATIONALISING THE SYSTEM / GOAL ALIGNMENT

No. Level Evaluation Criteria (bad condition) No. Level Evaluation Criteria (good condition) /X
1 1 Instructions from the manager / first-line manager are needed to proceed with each operation. 2 Each person's area of responsibility is clearly defined.

2 Managers / first-line managers are not really interested in employees' performance. Managers/first-line managers show real interest in individual employee performance.

Managers and first-line managers give different instructions. Everybody is clear about reporting relationships, which are adhered to in the main. Instructions
3 received from the first-line manager are consistent and clear.

4 Many reasons are given as to why instructions cannot be carried out and why jobs are delayed. Employees receive instructions constructively and implement it consistently.

Non-awareness regarding work in other areas creates duplication or gaps in the processes Ensure that departmental and section roles and functions are documented to eliminate wasteful
5 leading to quality and other problems. Structure unclear. duplications or gaps in work processes. Structure logical and clear.

6 2 Management goals are unclear and each department and section sets their own goals arbitrarily. 3 Top management's objectives are clearly described at each level of the organisation.

Management goals have not been analysed properly, “translated” (broken down and simplified) or Company goals are broken down into more specific objectives at each successive level.
7 conveyed to first-line managers and employees.

Goals are communicated to department level, but not further down the line. Specific department, section and workgroup goals (and plans to achieve this) are displayed by visual
8 graphs / charts for all to see.

Targets are communicated to sub-sections and first-line groups, but are not followed up. First-line managers regularly follow up on objective achievement status and encourage participation
9
in improvement plans.

Managers show no or little interest in the progress towards objectives. Managers at each level monitor the graphed progress towards objective achievement, giving feedback
10
to employees.

11 3 Employees are not interested in the organisation's constitution or health. 4 Each department and section conducts regular 20 Keys self-appraisal (20 Keys mapping).

No basic policy for the company exists, nor can its achievement be measured numerically. All managers study the 20 Keys and understand how the 20 Keys interrelate and they participate in

Facilitator's Manual Chapter 5: Maps, Checksheets and Benchmarking Guidelines

12 developing the organisation's basic policy.

There is no overall plan for improving the organisation's constitution or health over one year. Multi-level meetings are held to clarify the basic policy; goal achievement image and overall
13 improvement plan as well as target achievement.

Multi-level meetings take place but first-line employees are not fully involved. QCDSM objectives are based on basic policies and are set as numerical targets. Action plans are
14 displayed along with planned results in graphic format.

Revised 08/2001
Employees only pay attention to reaching their own goals and when these are not achieved they Groups work hard to achieve their own goals and take time and effort to assist other departments /
15 tend to blame other workplaces or departments. workplaces that are in trouble.

Companies choose a reduced range from the 20 Keys, say seven to 10 Keys, believing there are Everybody gains experience in how the 20 Keys interrelate and understand that real success with the
16
too many and that they are too difficult to carry out as a whole. 20 Keys requires synergistic improvement in all Keys.

D
The company does not achieve the overall year plan objectives even though activities proceed A mid-year, multi-level meeting is scheduled to review progress and to agree new plans for the latter

INTERNATIONAL
17 according to action plans. half of the year.

ORGANISATION DEVELOPMENT
18 The achievement rate at the mid-term multi-level meeting is low and employee motivation is low. The company strives to achieve 80% of targets at the mid-year meeting and motivation is high.

179
180
CHECKSHEET:
Better Faster Cheaper KEY 2: RATIONALISING THE SYSTEM / GOAL ALIGNMENT (Continued)

No. Level Evaluation Criteria (bad condition) No. Level Evaluation Criteria (good condition) /X
19 3 20 Keys activities are considered as improvement methods for manufacturing departments only 4 Offices and staff departments pursue their own 20 Keys programme modeled on a similar basic
and not for non-manufacturing departments. policy.
20
At year-end, the focus is on the next year's plans and the last year's evaluation is neglected. At the year-end multi-level meeting at least 80% of the goals are achieved. (The 3-colour evaluation
is all green.)
21
4 Some areas have not achieved 80% of the goals set by the mid-year multi-level meeting. 5 Over 80% of goals are accomplished by the mid-year multi-level meeting.
22
Some areas have not achieved 100% of the goals set by the year-end meeting. Goals are 100% accomplished by the year-end multi-level meeting.
23 The company's 20 Keys renewal programme has not yet spread into affiliated and supplier The 20 Keys improvement programme is operational in the whole company, including affiliated
companies and processes. companies and suppliers.
24
Although the 20 Keys include indirect departments, progress on achieving goals is slow in these Goals are 100% accomplished, not only by line departments, but also by all other indirect
departments. departments.
25
The company remains focused on yearly improvement plans and neglects the medium term. A thorough understanding of three to five year medium-term improvement objectives by every
employee is achieved.
26
Although the improvement goals for the year and for the medium term, i.e. three to five years, A thorough understanding of the 10-year long-term vision and company image by every employee
are set, there are no long-term 10-year improvement plans. should exist.
27
The goals of the company and the goals of employees seem to match theoretically but alignment Goals of the company and goals of employees are truly and fully integrated and aligned.
has not yet been achieved at a subconscious level.
28
The company can adapt promptly to almost all environmental changes, but not yet completely. The company has developed characteristics to enable instant adjustments to environmental and
market changes.

= 5 Fully meets requirements X = Needs improvements

Score 0 1-15 16-25 26-40 41-50 51-75 76-100 101-120 121-140

20 Key Level 1 1,5 2 2,5 3 3,5 4 4,5 5

Facilitator's Manual
Benchmarking: Questions to ask and things to look for

Key 2: Rationalising the System / Goal Alignment

Questions to Ask /X
Who do you report to? (briefly describe the organogram)
Describe top management’s vision, strategy and objectives in your own words

Describe the objectives and targets (QCDSM) of your team’s function

What are your responsibilities? (job description / key performance areas)

How do your first-line manager give feedback on your performance?

Are instructions from first-line managers consistent and clear?

Do employees implement instructions constructively? (positively and without follow-up from

first-line managers required)
Do first-line managers and managers regularly follow up objective achievement and give feedback
to employees? How and how often?

Have you attended a multi-level meeting? When? Did you get feedback from previous
multi-level meeting? How?
Is a multi-level meeting scheduled? For when?

Do all managers study the 20 Keys? How?

Are 20 Keys also implemented in all staff/office areas?

Who are the Key leaders for Keys implemented? Who is the 20 Keys facilitator?
Have you used the 20 Keys checksheets?

What to Look For /X

Organisational structure (organogram)
Top management’s objectives displayed in the workplace
Specific objectives and targets relevant to the team/function

QCDSM graphs and action plans are displayed and kept updated
Overall goals and implementation plan
Goal achievement matrix (3-colour evaluation chart) available

Promotion organisation (visually displayed)

20 Keys implementation in staff/office areas

Action plan

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Award criteria for Level 3 or Level 3.5 – Key 2
• Green rate of 3-colour evaluation is over 95%
• Evaluation factor is effective and appropriate for the company
• All 20 Keys are implemented
• Action plans are written for all 20 Keys
• Key leaders are active for all 20 Keys
• First-line managers’ comments are written on the 20 Keys checksheet
• Effective multi-level and mid multi-level meetings are held every year
• Vector adjustment is held in MLM.

182 Facilitator's Manual

Level 1 To Increase Productivity Map No.3 23 The foundation of small group activities is small groups
formed by first line employees, who set their own goals
related to their work itself, work environment or human
relations according to their ability. The activities are
conducted by making use of the wisdom and efforts of
Small Group Activities all group members. Without external support and
stimulation especially from upper management, the
(SGAs) activities stagnate. However, when you follow the 20
Keys implementation guidelines across your organisation,
a number of tasks or challenges can be easily identified
SGAs require support from managers because the targets for the next stage have clearly
assigned points. Since these targets correspond with
Illustrated by Adachi Architects Ateller Iwao Kobayashi, President PDI
the supervisor’s targets the SGA activities become real
and the number of Kaizen improvements increase.

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Benchmarking: Questions to ask and things to look for

Key 3: Small Group Activities (and Mini-Business Areas)

Questions to Ask /X
Do you know what a small group activity is?
Have you participated in a small group activity recently? When? What was discussed?
What was your role?

Have you submitted any suggestions? Does your first-line manager give you quick feedback
on your suggestions?
What is CAPDo? How is it used?

Do you understand all the visual displays in the team meeting area?
(Ask for an explanation of a graph, etc.)

Can you chair mini-business meetings and discussions? Have you done it recently?
When last have you received 20 Keys training? What was it about?
Information on suggestions implemented and themes completed

What to Look For /X

Visual displays in the mini-business area. Refer to the list of minimum standards
Updated action plans displayed in the mini-business area

Improvement suggestion system. Is it visual? Number of suggestions implemented

Has formal training and development of first-line managers been done

(on how to manage the mini-business and people?)

Action plan

Award criteria for Level 3 or Level 3.5 – Key 3

• Historical progress graph of suggestion numbers visually displayed
• System in place to promote generation of ideas e.g. idea generator – 12 ideas per person per month
implemented
• Improvement workshops systematically utilized
• The themes of small group activities for all groups are clear – at least two themes completed per
group
• Physical facilities for teamwork and visual management provided
• Preshift meetings in place

184 Facilitator's Manual

Level 1 In the transformation process from raw materials to
To Increase Productivity Map No.4 4 finished products there are many different types of
work-in-process in the plant or warehouses. When
work-in-process is reduced to half, processing lead time
can also be halved. In indirect divisions, documents
Reducing Work-in-Process should flow faster without delay or stagnation.
Shortening processing lead time is the key to meeting
changing orders that require short delivery lead times.
Reducing work-in-process and related Inventories incur interest, take up space, require
activities to enhance worker motivation and administration, transportation and equipment handling.
Work-in-process inventories can also cause other
reduce waste problems. By combining business processes in more
efficient ways, remarkable reductions in cycle times
Illustrated by Adachi Architects Ateller Iwao Kobayashi, President PDI become possible.

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Benchmarking: Questions to ask and things to look for

Key 4: Reducing Work-in-Process

Questions to Ask /X
Define WIP (for your process)
Name the different types of waste

Why is WIP a waste?

On which areas are you currently focusing to reduce WIP?
What are your targets (quantity, value) for reduction of WIP?
Information on WIP reduction (quality, value)

What to Look For /X

Stores (locations for WIP), visually organised
Process flow charts indicating WIP locations, levels and targets
Rule books and visual displays to achieve WIP targets.

WIP in-trays clearly marked

Action plan

Award criteria for Level 3 or Level 3.5 – Key 4

• Inventory reduction takes place in each section and the whole company
• Process of WIP reduction understood and utilised
• Rule books developed (three or four examples of the WIP rule book)
• Positive results in terms of 20 Keys tray document amount / height

186 Facilitator's Manual

Level 1
To Increase Productivity Map No.5 5 “Quick Changeover Technology” is not just a skill but a
“Revolution in the way you think”. It shifts the “Kaizen
(Improvement) of current status” concept to the
“Objective–Orientated” concept. Its goal is to perform
the changeover in less than ten minutes. The “Objective-
Quick Changeover Technology Orientated” concept is in fact the basis of the 20 Keys
implementation. When goals are realised, the fact that
the system really works motivates people to take even
Single Minute Changeover, the first step bigger strides. Stepping up progressively from one level
to the next until you reach 4 or 5 is your goal. In indirect
towards a goal-orientated approach divisions “Single Minute File Retrieval”, where anyone can
retrieve a needed document in under one minute, needs to
be implemented.
Illustrated by Adachi Architects Ateller Iwao Kobayashi, President PDI

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187
Benchmarking: Questions to ask and things to look for

Key 5: Quick Changeover Technology

Questions to Ask /X
Why is quick changeover needed?
What is the difference between internal and external changeover?
What is single minute information retrieval?
Have you played the masha-finger game?

% of employees who have studied QCT

Information on % single minute changeover and single minute information retrieval

What to Look For /X

Use of operation improvement sheets
SOP’s are used for changeover

QCT teams
Action plan

Award criteria for Level 3 or Level 3.5 – Key 5

• Kaizen sheet for machines (three or four examples)
• Example of single changeover (three or four examples) - the result, how long? – photos
• Single file (with “Single certificates” are necessary for each achieved shelf)
• More than 55% of all machines have achieved single changeover
• More than 55% of all shelves have achieved single minute file retrieval
• Quick changeover demonstrations are often carried out.

188 Facilitator's Manual

Level 1 Although the organisation can benefit greatly from
To Increase Productivity Map No.6 6 individual “one shot” improvements, looking at the entire
organisation and refining individual tasks yields even
greater results. Through Value Analysis (VA),
manufacturing functions of all work units are analyzed.
Kaizen of Operations It is a method of going back to the basics to see the
whole operation. Through this method, productivity
should increase and costs should decrease. To achieve
these goals, the principle is to conduct “vertical” Kaizen
Vertical Kaizen, horizontal Kaizen, (Kaizen to improve the operation rate of both operators
operation Kaizen and machines) as well as “horizontal” Kaizen (Kaizen to
reduce the motions required) simultaneously. A lot of
Kaizen in these two directions can often double
Illustrated by Adachi Architects Ateller Iwao Kobayashi, President PDI
productivity. A major requirement for productivity
increase is company-wide mutual co-operation.

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Benchmarking: Questions to ask and things to look for

Key 6: Kaizen of Operations

Questions to Ask /X
What is a non value-adding activity?
What is Kaizen? (vertical, horizontal)
Define efficiency and productivity

On which area are you currently focusing on (for Kaizen)?

Have you used an operation improvement sheet?
Have you been trained in techniques for value analysis? Which ones?
Have you used these techniques?

Information on efficiency and productivity improvements

What to Look For /X

Operation improvement sheets, Kaizen improvement schedules

Activity flow, process flow and physical flow diagrams

Action plans to reduce/eliminate non value-adding activities

Award criteria for Level 3 or Level 3.5 – Key 6

• Productivity improvement for each section for direct divisions (three or four examples) and for
indirect divisions (three or four examples)
• Productivity improvement for whole factory
• Example of Kaizen sheets (three or four examples)
• Improvement planning chart (vertical Kaizen and horizontal Kaizen sheet – three or four examples)
• What was most effective in order to improve productivity?

190 Facilitator's Manual

Level 1 In the production of a wide variety of products in
To Increase Productivity Map No.7 7 small lots, continuous unmanned operations seem
difficult. But it is relatively easy to run equipment
unmanned for one cycle without an operator. The
next step is to run machines unattended for one cycle
after work. By following the steps to eliminate
Zero Monitor Manufacturing / monitoring, operators can handle a multiple number of
machines without worrying about the machine
Production conditions. Regardless of the machine types, try to
eliminate monitoring. Eliminate waiting by balancing
lines in production. In indirect divisions make use of
ZMM for Zero Defects a “one page standard” to save time and accomplish
zero defects and zero monitoring.
Illustrated by Adachi Architects Ateller Iwao Kobayashi, President PDI

Level 4
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Benchmarking: Questions to ask and things to look for

Key 7: Zero Monitor Manufacturing / Production

Questions to Ask /X
Do you monitor (watch machines)? Why?
What is poka-yoke? Have you used the concept?

On which areas do you currently focus to eliminate monitoring?

Information on % of equipment which can run unmonitored, % of routine work in
indirect functions performed by one-page standards

What to Look For /X

One-page standards

Man-machine charts
Poka-yoke applications

Action plan

Award criteria for Level 3 or Level 3.5 – Key 7

• What percentage of machines are running unmonitored during lunch time?
• How did they improve unmanned operations during day time and at night?
• What is the completion rate for one-page standards for each section – provide table for each
section vs. percentage of accomplishment
• Has watching the operation been eliminated? Where? How?
• Please show the man-machine charts for some sections - three to four examples.

192 Facilitator's Manual

Level 1
To Increase Productivity Map No.8 8 The world is changing all the time. There are
changes in workplaces too. Some people, however,
do not recognise the changes. It is a major
mistake if you think you should have a large work-
Coupled Manufacturing (CM) in-process inventory to produce highly diverse and
mixed products in small quantities. Forget the
past when the economy was growing rapidly and
To create co-operation between upstream you could sell as many products as you made. Let’s
and downstream processes establish how to link processes in a visually
understandable way. Coupled manufacturing is a
Illustrated by Adachi Architects Ateller Iwao Kobayashi, President PDI method of linking processes.

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Benchmarking: Questions to ask and things to look for

Key 8: Coupled Manufacturing / Production

Questions to Ask /X
What is a coupling point?

Have you studied/discussed coupling methods?

What is your coupling strategy?

Where are your coupling points? How does it work?

What is a goldfish bowl meeting? Have you attended one?

What to Look For /X

Coupling points (stores), visually indicated and organised

Customer and supplier service level agreements

Action plan

Award criteria for Level 3 or Level 3.5 – Key 8

• Can you see stores at each section, including indirect divisions?
• What level are the stores at?
• Do these stores all have control boards or ordering point control?
• How many times were fishbowl meetings conducted?
• What % of ideas from fishbowl meetings were implemented?

194 Facilitator's Manual

Level
Level 1
1 You might say you are too busy and have to keep your
To Increase Productivity 8
Map No.9 9 machines running continuously until they break down.
Once this happens you will not be able to meet production
requirements. In order to prevent equipment breakdowns
you must eliminate the three evils of equipment abuse:
lack of cleaning, lack of lubrication and routine parts
Maintaining Machines & replacement, and mishandling. Involve all employees in
the goal setting process in order to attain maximum
Equipment results. Once the 20 Keys preventative maintenance
initiatives are under way, start-up breakdowns and
equipment deterioration will reduce. Furthermore, minor
To improve equipment operation rate stoppages caused by quality problems, material shortages
and changeovers will decrease dramatically. The
Illustrated by Adachi Architects Ateller Iwao Kobayashi, President PDI improvement of equipment operation rate will also result
in cost reduction.

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196
CHECKSHEET:
Better Faster Cheaper
KEY 9: MAINTAINING MACHINES AND EQUIPMENT

No. Level Evaluation Criteria /X

1 2 First-line employees understand the need for preventive maintenance and grasp its basic principles.
2 An equipment maintenance organisation has been formed with active study groups involving both maintenance and production staff.
3 A sign on each machine tells who is responsible for its maintenance.
4 Each machine has a maintenance log which is kept up to date. The log includes checksheets (oiling, cleaning, operating, etc.) and performance of the machine.
5 Machines which are most important and in most need of PM are labeled “PM Equipment” and have first maintenance priority, as a result sudden breakdowns on these machines do not occur.
6 Each designated PM equipment unit has a checksheet used by the operator for daily inspection and by the maintenance technician for periodic maintenance and service.

7 3 Operators know that they have primary responsibility for taking care of the machines that they use and understand the three evils.
8 Consumables, spare parts, and maintenance tools are kept nearby in clearly marked places to facilitate maintenance and speedy response to breakdowns.
9 Inspection and maintenance follows a set routine, and operators use occasional spare time to clean and touch up their machines.
10 The right kind of lubricant is kept on hand and operators follow clear instructions for lubricating their machines and replacing worn parts.
11 Operators are well trained in understanding their machine's functions and no longer have breakdowns due to mishandling.
12 There are no breakdowns caused by any of the three evils.
13 Teams have adopted maintenance improvement as a project theme for small group activities and the PM activity has been extended to all equipment.

14 4 Employees study improvement maintenance.

15 Tool and machine precision is maintained (and poka-yoke is being implemented) to prevent production of defects.
16 Measurements are taken to track equipment deterioration and to prevent related problems.
17 A clear maintenance blueprint and policy has been established for executing the 20 Keys PM cycle.
18 The EOR rate has been raised (through a 75% reduction in downtime due to mini-stoppages).
19 The organisation has reached level 3 or higher in the other 19 Keys.
20 There are no mini-stoppages caused by equipment malfunctions.
21 5 Most operators are proficient at improvement maintenance and have made maintenance improvements to their machines.
22 Improvement maintenance has made some machines better than new and have eliminated production of defects.
23 Machines produce only non-defective goods in the first run after each changeover. All machines are equipped with quick changeover technology.
24 A focused maintenance improvement programme has been thoroughly implemented and improvements have been implemented on all machines.
25 Follow-up management has also been thoroughly implemented and PM has been carried out on all machines.
26 The company's 20 Keys PM organisation and maintenance blueprint is functioning smoothly and effectively.
27 The organisation has reached at least level 4 in the other 19 Keys.
28 The EOR rate is 95% or higher.

= 5 Fully meets requirements X = Needs improvements

Score 0 1-15 16-30 31-50 51-70 71-85 86-100 101-120 121-140

20 Key Level 1 1,5 2 2,5 3 3,5 4 4,5 5

Facilitator's Manual
SUPPLEMENTARY CHECKSHEET:
Better Faster Cheaper KEY 9: MAINTAINING MACHINES AND EQUIPMENT

No. Level Judgement call for clarification of evaluation criteria on Key 9 checksheet /X
First-line employees understand the need for preventive maintenance (PM) and grasp basic principles such as early detection and prevention of equipment failure. They have been trained in the content of the checksheet and
1 2 understand the maintenance methods of their machine and that the ultimate aim is equipment stabilisation.
A maintenance organisation has been formed. It has active study groups on aspects of PM involving both maintenance and production staff. The basic roles of both groups on maintenance aspects have been clarified and defined
2 and basic responsibilities (like who should be contacted for a machine repair and who is responsible for ordering parts) as well as responsibilities for first-line maintenance and higher levels of maintenance are clear.
A sign on each machine tells who is responsible for its maintenance at first-line level and at maintenance support level. There are at least two names on the list, a responsible person (fill out the logbook, respond to major
3 breakdowns, replace parts and consumables) and a co-responsible person (do periodic oiling, cleaning, checking and properly operate equipment according to an operating standard). The sign is kept updated, also for all shifts.
(The production first-line manager or operator is the 'owner' of the sign and is responsible for keeping it (and logbook) updated.
Each machine has a maintenance log at the machine, which is kept up to date. The log includes equipment details, breakdown and maintenance and repair details. The difference between mini-stoppages and breakdowns is
4 understood and applied. Basic/first measurements of equipment downtime are done.
Some important machines are selected and labeled “PM Machines” and get professional and first maintenance priority. Such machines serve as models for level 3 actions when these concepts are to be applied to all machines. As a
5 result of this special effort on these PM machines, abrupt breakdowns do not occur on these machines.
PM assigned persons perform periodical checksheet inspections on PM machines and perform the necessary maintenance on these machines, based on the daily maintenance checksheets used by the operators of these machines.
6 Such maintenance actions are logged in the logbook.

3 Operators on all machines know that they have primary responsibility for taking care of the machines they use and understand the impact of the three maintenance evils of mishandling, untidy/dirty equipment and poor
7 lubrication/basic check-up of equipment. Participation in multi level meetings and vector alignment exercises increases the level of awareness.
Maintenance consumables and spare parts are kept in nearby, clearly labeled, racks to facilitate quick exchange of parts and consumables, effective routine maintenance and quick response to breakdowns. Maintenance planning
8 keeps such inventories at a minimum. Tool carts are well equipped so that quick repairs can be made anytime.
Inspection, cleaning and maintenance follow a set routine. Operators use available spare time to clean/tidy-up and touch up/paint their machines to detect possible problems early, become conscious of contamination and develop
9 ownership. All machines are tidy and clean at all times.
Rules on who to do what on all machines is clearly defined and understood. Lubrication of machines has been made easy (by easy to read charts indicating oiling locations, oiling intervals (for example, through the use of colour
10 codes) and oil types as well as storing clearly labeled oil close to the point of use).
Operators are well trained in the operation of their machines. They understand the basic functioning of their machines. SOPs and operating manuals are available at machines. Poka-yoke concepts have been applied to the
11 operating of machines (sequence indication on buttons etc.). There are no breakdowns due to mishandling.
There are no breakdowns caused by any of the three evils of maintenance. Always monitor breakdowns and mini-stoppages caused by the 3 evils separately from other breakdowns and mini-stoppages. (Breakdowns are stoppages

Facilitator's Manual Chapter 5: Maps, Checksheets and Benchmarking Guidelines

12 longer than 10 minutes and mini-stoppages are those shorter than 10 minutes). Feedback is given about where problems, due to the three evils, occurred.
As part of Level 3 activities, SGAs/teams have chosen prevention of breakdowns and mini-stoppages from the three evils (which allow for clear goals and targets) as themes for improvement. PM has been extended to all
13 machines. Teams are trained to apply small Kaizen improvements within these themes. The morale of teams is enhanced by these activities.
14 Both maintenance and production employees study improvement maintenance techniques (such as asking Why? five times, etc.) and apply these to prevent breakdowns. At least two people in each team have acquired these skills.
4
Tool and machine precision is maintained and poka-yoke concepts for quality problems have been implemented to prevent production of defects. No more mini-stoppages occur due to quality problems, caused by equipment
15 problems. Actions/modifications to maintain the required precision dimensions have been implemented (such as creating a dust free environment, cleaning compressor oil, right oiling, periodical inspection and modifying

Revised 08/2001
equipment).
Measurements are taken to track equipment deterioration and to prevent related problems by taken appropriate maintenance actions. Such measurements include noise, vibration, heat, etc. Tracking is done continuously and/or
16 periodically.
A clear maintenance blueprint and policy has been established and the 20 Keys PM cycle, as defined with all its feedback loops, is functioning well, thus ensuring equipment stabilisation, which leads to process stabilisation needed
17 to reduce inventories, lead time, etc.

D
18 The EOR rate has been raised through a 75% reduction in downtime due to mini-stoppages.

INTERNATIONAL
19 The organisation has reached Level 3 or higher in the other 19 Keys.

ORGANISATION DEVELOPMENT
There are no mini-stoppages caused by equipment malfunctions and all abrupt breakdowns have been prevented.
20

197
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KEY 9: MAINTAINING MACHINES AND EQUIPMENT FOR INDIRECT DIVISIONS

No. Level Evaluation Criteria /X

1 2 Everybody in indirect division understand the importance and basic principles of preventive maintenance.
2 Logbooks for office and measuring equipment (for example, in laboratories) are provided and used.

3 All office and measuring equipment are labeled to indicate the department as well as the person responsible for maintenance.

4 Logbooks to record the history of maintenance and repairs, of office and measuring equipment, are provided (including outside inspections) and used.
5 In case of equipment problems, proper actions are taken quickly, such as contacting the right people (inside or outside the company) responsible for maintenance.
6 Office and measuring equipment inventory are counted at least once a year and asset registers and logbooks are updated.
7 3 Cables of office and measuring equipment are correctly handled and neatly organised.

8 Order point control is used for copy, fax and printer paper, ink cartridges and consumables for measuring equipment.

9 Inspection and maintenance follows a set routine. Dust on all equipment and surfaces is regularly cleaned.
Papers used in printers, copiers and fax machines not needed any more or not correctly printed and copied are placed in appropriate boxes for disposal. Data sheets used for measuring equipment are sorted onto “needed” and
10
“not needed”.
11 When problems and breakdowns occur with equipment, causes are analysed and preventive measures are put into place. It is also communicated to other departments.
12 Troubleshooting manuals for office and measuring equipment are provided and used.
13 Cleaning of, and around the office and measuring equipment and preventive maintenance measures are discussed through small group activities.

14 4 Accessories of office equipment (printer cables, plugs, etc.), attachments of measuring equipment and cables are neatly organised.

15 Cleaning materials and tools for office and measuring equipment are provided and the locations of these tools are clearly indicated.

16 Office and measuring equipment that do not require time to warm-up are switched off when not in use (for example, when one leaves the office for a long time or leaves for home).

17 A consciousness to minimise the unnecessary use of copiers, fax machines and shredders has been developed.

18 Standards are set for sharing office equipment and recording sheets are provided and used to manage it.

19 The organisation has reached level 3 or higher in the other 19 Keys.

20 Mini-stoppages caused by office and measuring equipment are prevented.

= 5 Fully meets requirements X = Needs improvements

Score 0 1-15 16-30 31-50 51-70 71-85 86-100 101-120 121-140

20 Key Level 1 1,5 2 2,5 3 3,5 4 4,5 5

Facilitator's Manual
Benchmarking: Questions to ask and things to look for

Key 9: Maintaining Machines and Equipment

Questions to Ask /X
What is PM? What is your role in PM?
On which machines/equipment are you focusing for PM?
Do operators lubricate machines/equipment themselves?

Name the three evils

Do you use the 5 Why’s for maintenance improvement? How?
Is maintenance discussed in SGAs? What do you discuss?

Where do you store consumables, parts and tools?

What is OEE?

Information on OEE

What to Look For /X

Checksheets
Maintenance logs

Cleanliness of machines/equipment

Areas of responsibility for maintenance indicated

PM machines/equipment indicated

Graphs on OEE (also pareto diagrams and action plans)

Maintenance blueprint
Action plan

Award criteria for Level 3 or Level 3.5 – Key 9

• Does the company keep records of the number of machine stoppages caused by the three evils as
well as the number of unexpected machine stops?
• What is the machine work rate or OEE for each machine?
• What is the improvement rate in terms of mini-stoppages for each machine?
• What is the progress on the number of down machines or the % of downtime?
• What is the checksheet score?
• Are there machine histories for each machine?
• PM machines identified and checksheets utilized for PM machines?
• PM cycle and blueprint developed?
• Responsibility matrix visually displayed?

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200
Level
Level 11 Various actions to strengthen the workplace may
To Increase Productivity Map No.1010 be taken but these actions may not always be
effective. Discipline is established only when
managers, supervisors and employees are
competent and motivated. Just taking disciplinary
Workplace Discipline action does not help. Discipline is improved when
the corporate culture and work ethic is improved.
Furthermore, where there is strong discipline, the
Requirements to make the workplace work culture is enhanced. In a workplace where
more effective the 20 Keys are successfully implemented, step by
step, strong discipline exists and the workplace
becomes a more pleasant environment.
Illustrated by Adachi Architects Ateller Iwao Kobayashi, President PDI

Level 5
Level 1

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Level 3 Level 4
Level 1

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Facilitator's Manual
CHECKSHEET:
Better Faster Cheaper
KEY 10: WORKPLACE DISCIPLINE

No. Level Evaluation Criteria /X

1 2 Everybody is clear about starting times and work hours and employees are punctual. Visual displays are used to indicate work times and employees' names.

2 Morning and evening or shift greetings are lively and cheerful.

3 Morning meetings start and finish on time and includes a discussion on safety (every day).

4 No one smokes on the job and unneeded lights are turned out during lunch.

5 Employees wear uniforms or other appropriate, neatly kept clothing, with name tags. All safety gear is worn as prescribed.

6 Employees work purposefully and energetically. People walk without hands in pockets.

7 3 Team leaders (selected from regular work teams) from throughout the factory meet regularly to discuss and coordinate time control policies.

8 Employees arrive on time for morning meetings and begin work directly afterward.

9 Employees do not leave their stations until break time or unless clearly indicated.

10 Everyone returns tools to their proper places. Office employees leave desktops tidy when leaving the office.

11 Employees do not litter. Walkways are free of litter and dirt. If someone finds dirt or litter outside the factory or in walkways, he/she will pick it up immediately and throw it in the waste bin

12 When leaving their place of work, employees clearly display their destination or inform their first-line manager.

13 4 Employees arrive at morning meetings on time and dressed for work.

14 The morning meeting is brief and effective and it finishes on time.

15 People do not quit working until after the day or shift ends.

16 Everyone sets up for the next day's work before going home.

17 Before employees leave, the first-line manager posts the next day's work assignments, with notices regarding assignments, as well as notices regarding arranged vacations.

18 Office employees avoid long or irrelevant phone conversations. Meetings are focused and are concluded within the designated time

19 Good work order rules (respecting, reporting, communicating and consulting) are carried out reliably and consistently throughout the organisation.

Facilitator's Manual Chapter 5: Maps, Checksheets and Benchmarking Guidelines

20 Managers and employees speak clearly, plainly and courteously.

21 5 Employees perform value-adding work as soon as the day/shift starts, within cycle time the operation is fully functioning producing quality products.

22 Employees continue to perform value-adding work until the break or end-of-day.

23 Improvements have been made to eliminate all physically fatiguing work.
24 Work operations have a steady rhythm that helps employees to work smoothly and efficiently.

Revised 08/2001
25 The factory has reached at least level 4 in the other 19 Keys, an achievement that lends vital support to the improvement of workplace discipline.

= 5 Fully meets requirements X = Needs improvements

Score 0 1-15 16-30 31-45 46-60 61-85 86-100 101-115 116-125

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INTERNATIONAL
20 Key Level 1 1,5 2 2,5 3 3,5 4 4,5 5

ORGANISATION DEVELOPMENT
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Benchmarking: Questions to ask and things to look for

Key 10: Workplace Discipline

Questions to Ask /X
How often do you meet as a team? What do you discuss?
What is your role in team meetings and discussions?
What is your working hours and break times?
Do people start work immediately after the morning meeting?

Do you prepare for the next day before you go home?

What is the procedure when you want to leave the workplace during working hours?

Do you feel that time is wasted with meetings and telephone conversations?
Information on time and attendance

What to Look For /X

Time and attendance sheet

Morning meetings

Agenda for morning meetings

Adherence to workplace clothing policies (uniforms, personal protective equipment)

Adherence to smoking policies

Tools, equipment, materials lying around, things on desks

Action plan

Award criteria for Level 3 or Level 3.5 – Key 10

• What is the checksheet score?
• Improvement history on radar chart of Key 10 checksheet?
• What is the result of leader meetings?
• How does actual starting times compare with stated “policy” times?
• “Communicate, consult, respect and report” fully functioning?
• What has changed since introducing Key 10?

202 Facilitator's Manual

Level
Level 11
We tend to think of inspection when talking about
To Increase Productivity Map No.1111 quality assurance, but inspection does not reduce
defects. There are several keys to a proper QA
system. One of them is “inspection to prevent
defects rather than to find defects”. Other keys
Quality Assurance System are “processing not requiring operators’ attention
so that defects cannot be made even when
operators lose their concentration” and “zero
To strengthen the quality assurance deviation on the process so that defective
system for zero defects products don’t go out of the factory resulting in
customer complaints”. If “mistake-proof” devices
(Poka-Yoke) are installed and pre-automation is
Illustrated by Adachi Architects Ateller Iwao Kobayashi, President PDI
realised, the abnormality rate along the line
becomes less than 0,1%.

Level 1
Level 5 Level 4
Level 1

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Facilitator's Manual Chapter 5: Maps, Checksheets and Benchmarking Guidelines

Level
Level 13

Level
Level 12

Revised 08/2001
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INTERNATIONAL
ORGANISATION DEVELOPMENT
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203
204
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Better Faster Cheaper
KEY 11: QUALITY ASSURANCE SYSTEM

No. Level Evaluation Criteria /X

1 2 The concept “the next process is the customer” is well understood and practiced
2 The concept “build in quality during the process” is well understood and practiced. Defects are not included in the production volume

3 Employees have started to learn about the seven QC tools

4 A self-inspection system for operators has been established and is practiced
5 2.5 Standard operating procedures are clear (one-page standards for indirect divisions). They include key points and are visually displayed
6 Inspection standards are clear and required instruments for inspection are readily available

7 Limit samples for sensory evaluation are available. Employees are regularly trained through discussion groups in using it and for uniformity of inspection.

8 Managers and first-line managers support operators to ensure their self-judgement of the quality of work

9 3 Information on internal defects are instantly communicated and corrective measures are taken immediately
10 A feedback system for external defects is established, to immediately inform the source department in order for them to apply corrective measures
11 Corrective measures against internal and external defects include the revision of operational standards to prevent defect recurrence.
12 Photographs of where defects occurred are displayed with corrective actions indicated

13 3.5 Autonomous inspection lines are established for self-auditing and inspection

14 Quality counter measures, to ensure levels 2 and 3, are sustained and are clearly displayed in all areas
15 The concept of poka-yoke is well understood

16 Employees studied source inspection and root cause analysis and learned about its techniques

17 4 Poka-yoke devices are effectively implemented

18 Sequential inspections are done regularly, using sensory evaluation

19 The defect rate has decreased and is close to zero

20 In-process abnormality (first-time-pass) rate control has started

21 5 Poka-yoke has been implemented in the entire factory

22 Inspections are regularly enforced

23 The abnormality (first-time-pass) rate is 0.1% or less

24 The amount of re-work between processes has been reduced significantly

25 Complaints and errors between processes have been reduced to zero

= 5 Fully meets requirements X = Needs improvements

Score 0 1-10 11-20 21-40 41-60 61-80 81-100 101-110 111-125

20 Key Level 1 1,5 2 2,5 3 3,5 4 4,5 5

Facilitator's Manual
CHECKSHEET:
Better Faster Cheaper
KEY 11: QUALITY ASSURANCE SYSTEM (autonomous inspection line)

No. Level Evaluation Criteria /X

1 2 The concept “the next process is the customer” is well understood and practiced
2 The concept “build in quality during the process” is well understood and practiced. Defects are not included in the production volume
3 Employees have started to learn about the seven QC tools

4 A self-inspection system for operators has been established and is practiced

5 2.5 Standard operating procedures are clear (one-page standards for indirect divisions). They include key points and are visually displayed

6 Inspection standards are clear and required instruments for inspection are readily available

7 Limit samples for sensory evaluation are available. Employees are regularly trained through discussion groups in using it and for uniformity of inspection.

8 Managers and first-line managers support operators to ensure their self-judgement of the quality of work

9 Checksheets for quality assurance are used by operators

10 Checks are done for insects* and foreign objects in product

11 Checksheets are used for metal inspection*

12 3 Information on in-process defects is instantly communicated and corrective measures are taken immediately

13 Customers' complaints are immediately communicated to the area where the defects occurred in order for them to apply corrective measures

14 Standard operating procedures are updated, based on in-process defects and customers' complaints, to prevent reoccurrence of problems

15 Photographs of where defects occurred are displayed with corrective actions indicated

16 The time, from mixing to baking, is measured and controlled*

17 The maintenance status of dies is checked every day*

18 3.5 Quality counter measures, to ensure levels 2 and 3, are sustained and are clearly displayed in all areas
Autonomous inspection lines are established for self-auditing and inspection

Facilitator's Manual Chapter 5: Maps, Checksheets and Benchmarking Guidelines

19
20 Checksheets for autonomous inspection on the line are regularly completed. Checksheets, used by operators, are regularly checked.

Note: Items indicated by * are examples and need to be modified for the specific line/workplace

Score 0 1-10 11-20 21-55 56-85 86-100

Revised 08/2001
20 Key Level 1 1,5 2 2,5 3 3,5

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INTERNATIONAL
ORGANISATION DEVELOPMENT
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206
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Better Faster Cheaper
KEY 11: QUALITY ASSURANCE SYSTEM FOR INDIRECT DIVISIONS

No. Level Evaluation Criteria /X

1 2 The concept “the next process is the customer” is well understood and practiced. A matrix of next processes and what is supplied to them has been drawn up.

2 The concept “build in quality during the process” is well understood and practiced. Commitments are made to not make mistakes and to think of the effect of these mistakes on the next process.

3 Employees have started to learn about the seven QC tools. Graphs, checksheets and pareto analyses are used.
4 A self-inspection system for work done has been established and is practiced (checksheets are used, where appropriate, and quality assured at the point where the work is done).
5 2.5 One page standards are used. They include key points, points for attention and are visually displayed. Single minute file retrieval is implemented.
6 Standards and criteria of work and inspection are clear. Where appropriate, all testing equipment is available.
7 Quality of work standards and samples (also based on sensory evaluation) are available. Instances where first-line managers or specialists should be consulted, are clearly indicated and done.
Managers support employees, with the help of one-page standards, to ensure that the quality of their work is according to standard. Work done is checked and corrected by superiors and specialists, according to the key points
8 and points of attention on one-page standards.
9 3 Information on internal claims (about the quality of work) is instantly communicated to the department where the error was made and corrective measures are taken immediately.

10 A feedback system for external claims (about the quality of work) is established, to immediately inform the responsible department in order for them to apply corrective measures.

11 Corrective measures against internal and external claims include the revision of one page standards (key points and points for attention) to prevent recurrences.

12 Graphs and (pareto) charts, regarding problems, are displayed and corrective actions are indicated.

13 3.5 Autonomous inspections are established. Departments use their own checksheets (based on the 20 Keys checksheet but customised for their environment) for regular self-inspection of quality of work.
14 Action plans to ensure that levels 2 and 3 are sustained, are clearly displayed in all areas
15 The concept of poka-yoke is well understood. Actions to prevent errors have been discussed and preventive measures have been agreed.

16 Employees understand root cause analysis as well as the relationship between Key 11 and the other 19 Keys.

17 4 Poka-yoke devices are effectively implemented. Every claim (about the quality of work) is analysed and action is taken to eliminate the root causes.

18 Sequential checking of work is done (also based on sensory evaluation). A system is in place where superiors and specialists can be consulted for advice on anything which is difficult to judge in terms of quality of work.

19 The defect (any deviation from standard) rate has decreased and is close to zero.

20 Quality of work is monitored by a first-time-pass rate control. Quality is checked and measured at each process.
21 5 Poka-yoke has been implemented in the entire factory.
22 Inspections are regularly enforced.

23 The abnormality (first-time-pass) rate is 0.1% or less.

24 The amount of re-work between processes has been reduced significantly.

25 Complaints and errors between processes have been reduced to zero.

= 5 Fully meets requirements X = Needs improvements

Score 0 1-10 11-20 21-40 41-60 61-80 81-100 101-110 111-125

20 Key Level 1 1,5 2 2,5 3 3,5 4 4,5 5

Facilitator's Manual
Benchmarking: Questions to ask and things to look for

Key 11: Quality Assurance

Questions to Ask /X
Who are your customers?
What is your approach towards quality (who is responsible for quality)?
Name the seven QC tools? Have you been trained in it? Do you use it?

How do you check for quality?

Do you get feedback on quality problems? How?
What is 'time to detect' and 'time to correct'? Why is it important?
Information on in-process abnormality rate and customer complaints

What to Look For /X

Measurements and graphs on quality

Visual displays of quality problems

Standard operating procedures

Customer service level agreements

Action plan
Measurements and graphs on quality

Visual displays of quality problems

Award criteria for Level 3 or Level 3.5 – Key 11

• What is the checksheet score? Do all employees, including temporary workers participate in the
evaluation and improvement of the checksheet? Show the radar chart
• What is the result of reduction on outside claims?
• What is the defect reduction on the line?
• What is the good product rate? Did it improved?
• How has yield improved?
• Please show the following examples:
a) Limit gauge
b) Caution plate / warning sign – can you see it everywhere?
c) Limit sample – can you also see it everywhere?
• Autonomous inspection line checksheet developed and used?
• Is know-how written on SOPs (work standard sheet)? Work standard sheets re-written or know-
how added over time?
• Use of pareto charts. Cause and effect diagrams, seven QC tools used by general workers? Can
we see them everywhere?
• Show examples of poka-yoke
• How is the defect information flow? Does defect information immediately flow to the previous
process? (Time to detect – Time to correct?)
• Key 11 in indirect divisions, do they use the special checksheet?

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To Increase Productivity Map No.1212 It is difficult for one company to produce all parts and
materials as well as finished products. The balance
between in-house production and outsourcing
determines the effectiveness of the company. It is
said that “suppliers are the mirrors that show the
Developing your Suppliers reflection of your own company”, and relationships with
them affect quality, lead-time and cost. Let’s decide
on the support we should give our suppliers to
To strengthen support provided to suppliers strengthen their production, design and development
by helping upstream processes systems and encourage open-book costing. If your
department has nothing to do with outside suppliers,
then support internal suppliers, that is, your upstream
Illustrated by Adachi Architects Ateller Iwao Kobayashi, President PDI
processes.

4
Level 1
5
Level 1

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Level 3
Level 1

2
Level 1

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Facilitator's Manual
Benchmarking: Questions to ask and things to look for

Key 12: Developing Your Suppliers

Questions to Ask /X
Who are your suppliers?

What do you do to develop your suppliers?

What procedures do you follow when you have problems with suppliers?
Information on supplier performance

What to Look For /X

Customer / supplier charts
Customer/supplier contracts/agreements
Formal structures for communication and problem solving with suppliers
Supplier service level agreements

Supplier performance measurement

Supplier development strategy

Action plan

Award criteria for Level 3 or Level 3.5 – Key 12

• How has defects or delays from suppliers improved? Show the improvement graph
• Are there many suggestions from suppliers? Do they accept these suggestions?
• How did they support suppliers?
• How many suppliers did they support?
• How often did they visit and support suppliers?
• In indirect divisions, what did they do for Key 12?

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Level
Level
Level 111 Once waste is recognised and understood, it is
To Increase Productivity Map No.13 13 best to draw a “Treasure Map” that visually
displays locations of waste. This will enable you
to measure and evaluate the effectiveness and
interrelationship of all the 20 Keys.
Eliminating Waste
The map shows the progress and effort made by
SGA’s so that employees can make comparisons
Anything not value adding is waste within their own group and between other groups.
This will motivate and encourage employees.
(Muda). Through competitions and working together, you
can mine out the gold, silver and copper as fast as
Illustrated by Adachi Architects Ateller Iwao Kobayashi, President PDI
possible.

Level
Level 15 Level
Level 14

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Level
Level 13
Level 1
2

© PPORF Development Institute, Tokyo Japan

Facilitator's Manual
Benchmarking: Questions to ask and things to look for

Key 13: Eliminating Waste

Questions to Ask /X
Name the types of waste this Key focuses on

What is the biggest waste in your area?

What have you done to reduce this type of waste? (give examples)

On which area are you currently focusing for elimination of waste?

What is activity sampling? Who does it? When last was an activity sampling done?
Information on the treasure map and work rate

What to Look For /X

Activity sampling sheets
Treasure map (waste matrix)

Action plan

Award criteria for Level 3 or Level 3.5 – Key 13

• Treasure mountain maps are made three times per year = work sampling is carried out three times
a year
• Is the method of work sampling correct?
• Do people understand the characteristics of 20 Keys work sampling?
• Treasure mountain meetings are conducted just after work sampling
• Counter measures are taken to achieve a better actual work rate
• The actual work rate increases due to the counter measures - show the graph
• Work sampling applied to indirect divisions? What was the result? Show the improvement graph

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Level 11
To Increase Productivity Map No.1414 Improvements should be conducted within your
13 workplace. If you rely on others to perform
improvements (Kaizen) for you, your needs may
not be completely met. If you were to buy a
Empowering Employees to necessary shelf, you could make any required
corrections or adjustments yourself which would
Make Improvements make it easier to use. You could even make the
shelf yourself. It is important that you learn to
Kaizen corners, a powerful tool to promote implement your own improvements. Organisations
which have progressed in “Kaizen” activities, have
improvement visible “Kaizen corners” developed by the
Illustrated by Adachi Architects Ateller Iwao Kobayashi, President PDI employees themselves.

Level
Level 15 Level
Level 14

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Level
Level 13
Level 2
Level 1

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Facilitator's Manual
Benchmarking: Questions to ask and things to look for

Key 14: Empowering Employees to Make Improvements

Questions to Ask /X
Are you allowed to implement some of your own suggestions?
Have you been trained to use the facilities in the Kaizen corner?

When last did you use the Kaizen corner? What for?

Information on the number and use of Kaizen corners

What to Look For /X

Kaizen corners
Implemented suggestions (Were Kaizen corners used for it?)
Action plan

Award criteria for Level 3 or Level 3.5 – Key 14

• Kaizen corners are seen everywhere
• Effective Kaizen is always conducted by using the Kaizen corner
• Jigs and carts are made at the Kaizen corner
• Material is prepared at the Kaizen corner
• Safe work practices are applied in the Kaizen corner
• There are many Kaizen activities

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Level 11
If you have to stop a machine when an operator is
To Increase Productivity Map No.1515 absent and it affects production, it will be difficult to
meet changing customer requirements. If operators are
trained to perform skills not only in their own
workplace, but also in other areas, customer demand can
Skill Versatility and be met in most unexpected circumstances. It can,
however, take some years for a person to become multi-
Cross Training skilled. Therefore, it is important to simplify
operations so that employees from other workplaces can
Cross-training by making the easily perform the job with minimum training. Cross-
training also requires educational training programmes,
job easy to learn. which often do not reach all employees. Therefore, a
“cross-training skills matrix” is required for employees
Illustrated by Adachi Architects Ateller Iwao Kobayashi, President PDI
to improve their skills through on-the-job training and
development.

Level
Level 15
Level
Level 14

Organisation Development International Tel +27 12 665 0999

Level
Level 13

Level 1
Level 2

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Facilitator's Manual
Benchmarking: Questions to ask and things to look for

Key 15: Skill Versatility and Cross Training

Questions to Ask /X
What is skill versatility? Why is it important?
What jobs, other than your usual job, have you been trained for?
When last did you attend 20 Keys training?
Information on level of skill versatility

What to Look For /X

Skills matrices
Training plans and schedules

Action plan

Award criteria for Level 3 or Level 3.5 – Key 15

• Cross training schedule is always made by all sections
• Cross training schedule is checked by everyone, once every two months
• Cross training schedules are visually displayed everywhere
• Skill versatility within the group is complete
• For the Bronze award level (3 to 3.5), it is required that employees from one section can and will
easily go and work in another section

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Level 11
All production engineers dream of eliminating
To Increase Productivity Map No.16 16
the waste of “waiting” (and any other types of
idleness) and of meeting delivery requirements
completely. Nowadays customer needs are
Production Scheduling & increasingly diversified; specification levels are
higher; lead times need to be reduced; and
Process Control demand changes substantially within this
environment. We can no longer meet these
requirements by considering process control in
Process control supported by a strong isolation.
production constitution So what is the solution? Well, one is that by
Illustrated by Adachi Architects Ateller Iwao Kobayashi, President PDI
consistently developing all the Keys to a high
level, smooth process control can be realised
with improved results in other areas as well.

Level
Level 15

Organisation Development International Tel +27 12 665 0999

Level
Level 12

Level
Level 13 Level
Level 14

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Facilitator's Manual
Benchmarking: Questions to ask and things to look for

Key 16: Production Scheduling

Questions to Ask /X
What is your scheduling approach?
What can you do to ensure on-time delivery to the next process or customer?
Is there a rush at month-end to get production out?

How do you keep track of production work?

Information on schedule adherence and customer due date delivery performance

What to Look For /X

Production schedules (visually displayed)
Graphs on customer service level, schedule adherence
Toady/Tomorrow’s work displayed

Action plan

Award criteria for Level 3 or Level 3.5 – Key 16

• What is the situation on delivery time?
• Not only final delivery time to the customer is important, the company needs to decide the
schedule for and keep to it at each process
• Do all departments write action plans on Key 16? Do they utilize as evaluation factor “% on-time
delivery”? This is not only for final process, but also first process, second process, etc.
• Did they carry out start and completion schedule control?
• Did they remove the concentrated production towards the end of the month or the fixed delivery
limit? This is not only for production divisions, but also other indirect divisions

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Level
Level 11 There may be a lot of effort across your plant to
To Increase Productivity Map No.17 17 increase productivity. However, without
recognising the efforts of employees as
individuals or groups, it is difficult to boost their
motivation. Set quantitative goals and use graphs
as tools for efficiency management to motivate
Efficiency Control employees for the accomplishment of goals.
Efficiency management goals must be easy to
understand, as it is also important to train
To motivate all employees employees and build a firm foundation to develop
the means to achieve their goals. Use the 20
Illustrated by Adachi Architects Ateller Iwao Kobayashi, President PDI
Keys to strengthen the constitution of the
manufacturing plant as a whole.

Level
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Level
Level 12 Level
Level 13

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Facilitator's Manual
CHECKSHEET:
Better Faster Cheaper
KEY 17: EFFICIENCY CONTROL

No. Level Evaluation Criteria /X

1 2 A daily work report has been written for each operator.

2 Daily work time is reported for each employee and for each product model

3 Rough efficiency control units (ABC management, etc.) have been established.
4 Employees feel that their first-line managers and colleagues understand and appreciate the effort they put into their work.
5 Managers set up and maintain monthly efficiency charts for each work group.
6 Efficiency management supported by numerical value for ABC management, etc. is performed.
7 Difficulty indices and standard times are reviewed periodically.
8 3 Standard times are set for all major product models (excluding prototypes and special-order products) and types of work.

9 Actual times have been obtained for all major product models and types of work.

10 Efficiency control is implemented for all primary operations.

11 Monthly efficiency control graphs are displayed with targets for each work group.
12 Standard labour hours are used to determine labour content for each process and jobs are assigned accordingly.
13 Daily efficiency control graphs are in place and displayed with daily targets for each work group.

14 3.5 Standard times are periodically reviewed and revised.

15 4 Efficiency control is being used for prototypes and special-order products as well.
16 Daily efficiency is tracked for individuals or work groups in all operations.
17 Daily efficiency control graphs are displayed and used to detect day-to-day drops in efficiency, which are promptly addressed with corrective action.
18 Operating rate control is carried out.

19 Efficiency and operating rate estimates are used to plan number of employees required for the next month.

Facilitator's Manual Chapter 5: Maps, Checksheets and Benchmarking Guidelines

20 The company has reached level 3 or higher in the other 19 Keys. Everyone is confident about reaching their efficiency goals and they are enthusiastic about tracking their progress.
21 5 Everyone is motivated to reach their efficiency goals.
22 Everyone is confident about reaching their efficiency goals.
23 Employees feel their efforts are rewarded as they check and update their efficiency control graphs.

24 Everyone understands how efficiency control depends on progress in the other 19 Keys.

Revised 08/2001
25 Everyone takes an interest in the efficiency trends shown on the efficiency control graphs.

25 Employees consistently meet their efficiency goals, which assist with the consistent achievement of production schedules.

D
= 5 Fully meets requirements X = Needs improvements

INTERNATIONAL
Score 0 1-15 16-35 36-50 51-70 71-85 86-100 101-115 116-130

ORGANISATION DEVELOPMENT
20 Key Level 1 1,5 2 2,5 3 3,5 4 4,5 5

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Better Faster Cheaper
KEY 17: EFFICIENCY CONTROL FOR INDIRECT DIVISIONS

No. Level Evaluation Criteria /X

1 2 Daily work reports are completed for all employees (for use when the D method of efficiency control is implemented).
2 Tasks for efficiency improvement (per group) have been identified and actual times are recorded.

3 Tasks for efficiency improvement (per individual) have been identified and actual times are recorded.
4 Employees feel that their managers and colleagues understand and value the level of their efforts.
5 Monthly efficiency control graphs based on the D method of efficiency control are used. Targets are set for time reduction, for example, Target = Annual time spent / 1.3 annual time spent.
6 Where tasks with no actual data are chosen for improvement, times are estimated through ABC control and these are used as standard times.

7 Standard times estimated with ABC control are reviewed periodically (at least annually).

8 3 Standard times are set for important tasks.

9 Actual times are recorded for all important tasks (for use when the B method of efficiency control is implemented).
10 Efficiency control is implemented for all the important tasks according to the B method.
11 Monthly efficiency control graphs based on the B method are displayed with targets for the important tasks.
12 Standard man-hours are used to determine the work content of each of the tasks and staff is assigned accordingly.
13 Daily efficiency control graphs per group are displayed, including targets for improvement.
14 Standard times are periodically reviewed and revised (at least once per year).
15 4 Efficiency control based on the A method of efficiency control is implemented for all important tasks as well as other day-to-day tasks.

16 Efficiency control based on the A method of efficiency control is done for all tasks and monitored daily. For tasks where daily monitoring is not possible, it is done monthly.

17 A system is in place to quickly adjust to ensure efficiency targets are met.

18 Efficiency of employees are managed based on measurement of actual times spent vs. standard (target) time.

19 Estimated efficiency and working times are used to plan staff requirements for the next month.

20 The company has reached level 3 or higher in the other 19 Keys.

21 5 Everyone is motivated to reach their efficiency goals.

22 Everyone is confident about reaching their efficiency goals.

23 Employees feel their efforts are rewarded as they check and update their efficiency control graphs.

24 Everyone understands how efficiency control depends on progress in the other 19 Keys.

25 Everyone takes an interest in the efficiency trends shown on the efficiency control graphs.

26 Employees consistently meet their efficiency goals, which assist with in the consistent achievement of task schedules.

= 5 Fully meets requirements X = Needs improvements

Score 0 1-15 16-35 36-50 51-70 71-85 86-100 101-115 116-130

20 Key Level 1 1,5 2 2,5 3 3,5 4 4,5 5

Facilitator's Manual
Benchmarking: Questions to ask and things to look for

Key 17: Efficiency Control

Questions to Ask /X
Define efficiency
How do you control efficiency?
What is a standard time of an operation?

When last were the standards reviewed? Were you involved?

Which techniques do you use for setting standards?

What is your current efficiency?

How can you improve efficiency rates?

Do you often discuss efficiency rates?

Information on time standards and efficiency

What to Look For /X

Standard times for operations

Graphs for efficiency control

Action plan

Award criteria for Level 3 or Level 3.5 – Key 17

• Show daily efficiency control graph on each process. What is the trend of the monthly efficiency
graph over three years? These are for direct divisions
• What is the monthly efficiency graph trend for indirect divisions?
• Please indicate the methodology to measure productivity in direct division and indirect divisions
• What is the checksheet score and radar shape for each direct and indirect division?
• Efficiency control conducted by using Hs (standard time) or ABC group method? These may be
different depending on the section. Please show the data

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Office Automation (OA) and Factory Automation (FA)
Level
Level 11
have each been effectively utilised in many companies.
To Increase Productivity Map No.18 18 These can now be integrated and further developed into
Point of Production (POP) systems, Computer Integrated
Manufacturing (CIM) and Strategic Information
Systems (SIS). These integrated systems can thus be
Using Information Systems applied throughout the plant, the company and the
community at large. The computer itself, however is
only a tool; people themselves must act to meet the
ever-changing needs effectively and must act
A key to strengthening corporate health appropriately using the technology. This was a problem
in manufacturing when instituting CIM. However, if you strengthen your
company’s manufacturing capabilities through the 20
Keys and tailor your computer software to suit your
Illustrated by Adachi Architects Ateller Iwao Kobayashi, President PDI
organisation’s development stages, then the application
will be immediate, effective and will serve its purpose.

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Facilitator's Manual
Benchmarking: Questions to ask and things to look for

Key 18: Using Information Systems

Questions to Ask /X
Have you been trained in the use of computers? What kind of training?
Do you use micro-processors in manufacturing/production
(PLC’s, NC machines, robot technology)? Where and how?

How quickly can you retrieve management information from computer systems?
Are information systems fully integrated?
Is management information readily available (and correct)?
Is it in the right format for your use (trended, summarised, graphed)?

Are information systems making your work easier (or more difficult? How?
Do you use information systems to support implementation of the 20 Keys? How?

What to Look For /X

Information technology strategy and plan (for software and hardware systems)
End user computing strategy and support systems
Action plan

Award criteria for Level 3 or Level 3.5 – Key 18

• Which level of worker can use computers? Only the group leader or also general workers?
• Levels of computer work, for different employee categories, identified and a training matrix and
plan developed to achieve the targets?
• Have work been divided into handwritten jobs vs. computer jobs? What % of handwritten jobs
were changed to computer jobs?
• Is design drawing and drawing for production based on common data?
• Is the computer system used effectively?
• Full scale implementation of integrated OA and FA completed?

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Level
Level 11 After the successive oil crises, companies and countries
To Increase Productivity Map No.1919 alike have been forced to find more efficient ways to
conserve and utilise energy and other resources. In some
industries, company survival is dependant on how
successful they are in energy and resource conservation.
What is needed is to consider all available detailed saving
Conserving Energy & Materials measures through total employee participation before
introducing large-scale programmes using new technologies
for equipment improvement.
Conserving energy and resources through It is sometimes difficult to realise that there are many
existing and new technologies simple things around you that can be used to improve
energy conservation. By close examination, especially in
indirect divisions, savings can be made.
Illustrated by Adachi Architects Ateller Iwao Kobayashi, President PDI

Level
Level 14
Level
Level 15

Organisation Development International Tel +27 12 665 0999

Level
Level 13
Level
Level 12

© PPORF Development Institute, Tokyo Japan

Facilitator's Manual
Benchmarking: Questions to ask and things to look for

Key 19: Conserving Energy and Materials

Questions to Ask /X
Have you recently participated in an energy awareness programme?
Describe the different kinds of resources used in your process

Which is the most important cost indicator for you?

What are the current actual and target figures for the most important cost indicator?

What is the material yield? – for your process

What cost saving ideas have you implemented?
Information on costs and yield

What to Look For /X

Energy conservation and awareness programmes
Yield graphs

Graphs on conserving energy and materials

Cost saving action plans
Action plan

Award criteria for Level 3 or Level 3.5 – Key 19

• Cost of energy, water, material, etc. visually displayed?
• Graphs of energy utilization and reduction. Electricity? Gas? Water? Etc.
• Utilization of very new technology? Or, only general technology used?
• How much raw material savings took place? Is everyone saving electricity and raw material?
• Action plans for saving energy and raw material, actively utilized?
• Respect for the environment is achieved through this Key

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Site technology, or technology developed in-house is the
accumulation of skills, know-how, and devices developed To Increase Productivity Map No.20
It is necessary to continually benchmark
over the years in your workplace. Introduction of new
equipment does not simply improve your site technology.
yourself within your industry in order to close
Today, product life cycles are shorter and the ability of or further improve the competitive gap.
your plant to changeover to new products smoothly is what
Leading Technology /
we call “Technology Systems”. Every company relies on Site Technology Even if you are well above average, continuous
advanced technology, such as large -scale integration (LSI) improvement is necessary to sustain this, since
and mechatronics as well as site technology for what’s “new” today will be “old” in six month’s
improvement. Both leading technology and site technology Site technology and new technology based time.
enhance each other.
on common understanding
Illustrated by Adachi Architects Ateller Iwao Kobayashi, President PDI
Level
Level 11
Level
Level 15

Level
Level 13

Organisation Development International Tel +27 12 665 0999

Level
Level 12
Level
Level 14

© PPORF Development Institute, Tokyo Japan

Facilitator's Manual
Benchmarking: Questions to ask and things to look for

Key 20: Leading Technology / Site Technology

Questions to Ask /X
Have you done a technology benchmark? When? What were the results?
What is your current technology implementation plan?

What to Look For /X

Technology strategy and plan
Technology benchmark (radar chart)
Action plan

Award criteria for Level 3 or Level 3.5 – Key 20

• Technology radar chart made?
• How many technologies addressed?
• What is the current level?
• What was improved?
• How was it improved?
• What is the speed of new product development?

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chapter 6
FACILITATOR´S MANUAL

Model Workplace
and
International Awards

The 20 Keys benchmarking system provides the basis from which organisations determine their
current status and progress. Four classes of awards indicate superior progress, viz., Excellence,
Bronze, Silver and Gold. These awards are given to companies by the PPORF Development Institute
Inc., Japan.

The awards are awarded to companies. However, within companies there are always those individual
workplaces that lead the way and deserve to be celebrated and recognised. For this reason, the 20
Keys also certifies excellent workplaces with Model Workplace Certificates.

The 20 Keys recognition structure is shown and explained below.

4S Level 4.5
Factory
GOLD
4S Level 4 AWARD
Factory
SILVER
AWARD
BRONZE 4S Level 4.5
4S Level 3.5 AWARD Workplace
Excellence Workplace
4S Level 4
4s Level 3 Award Workplace
Workplace

228 Facilitator's Manual

6.1 Model workplaces

6.1.1 What is a 20 Keys model workplace?

• Model workplaces are important building blocks on the way to the International 20 Keys Awards

• With the establishment of a model workplace, a highly efficient workspace is created in terms of
skill and work conditions

• The requirements are applicable on the shopfloor, as well as in the office

• To establish a model workplace, the following Keys, in addition to Key 1, are needed:

• Key 4: WIP Reduction

• Key 5: Quick Changeover
• Key 6: Kaizen of Operations
• Key 8: Coupled Manufacturing

• The latter Keys support the systematic improvement of Key 1 - to move from cleaning and
organising to measurable improvements.

6.1.2 Achieving the 4s Level 3 workplace certificate

For Sustainable Business Improvement

LEVEL 3 CERTIFIED
WORKPLACE
Practical Program of
Revolution in Factories and other
Organisations to Increase Productivity

Awarded to

(Department or Individual Name)

(Company Name)
June 2006

JM Benadie Date

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CRITERIA FOR A 4S LEVEL 3 WORKPLACE
1. Over 70 points on the Key 1 checksheet
2. Some desks/worktables are certified model desks or worktables (one or more per workplace)
3. Over 10% single minute changeover or single minute information retrieval
4. Some stores are complete (at least one per workplace).

These criteria are explained further on.

6.1.3 Achieving the 4s Level 3.5 workplace certificate

For Sustainable Business Improvement

LEVEL 3.5 CERTIFIED

WORKPLACE
Practical Program of
Revolution in Factories and other
Organisations to Increase Productivity

Awarded to

(Department or Individual Name)

(Company Name)
June 2006

JM Benadie Date

CRITERIA FOR A 4S LEVEL 3.5 WORKPLACE

5. Over 85 points on the Key 1 checksheet
6. All desks/worktables and machines are certified as model desk, worktables or machines
7. Over 55% single minute changeover or single minute information retrieval
8. Stores are complete with control boards to prevent the waste of over-production

These criteria are explained further on.

230 Facilitator's Manual

6.1.4 Achieving the 4s Level 4 workplace certificate

For Sustainable Business Improvement

LEVEL 4 CERTIFIED
WORKPLACE
Practical Program of
Revolution in Factories and other
Organisations to Increase Productivity

Awarded to

(Department or Individual Name)

(Company Name)
June 2006

JM Benadie Date

CRITERIA FOR A 4S LEVEL 4 WORKPLACE

9. Over 100 points on the Key 1 checksheet
10. All desks/worktables and machines are certified as model desk, worktables or machines
11. Over 100% single minute changeover or single minute information retrieval
12. Stores are complete with control boards to prevent the waste of over-production.

These criteria are explained further on.

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6.1.5 Criteria for a model desk

Criteria
Criticalfor
Success
a Model
Factor
Desk /X

1. Desk top clean. There is no paperwork between the desk and glass top.

2. Desk not rusted

3. 20 Keys in-/out-trays are in use and within easy reach; in-tray is marked with a
red line to show the work-in-process (WIP) limit (volume rule); for the out-tray,
rule of frequency of removal is used (pull rule) OR
transparent 20 Keys tray is available with a red line to show the WIP limit on this
tray and has a divider card which is a bit larger than A4, indicating “away for a
moment”.

4. An area for the 20 Keys tray is clearly indicated on the desk.

5. The desk top is neatly organised and no unnecessary items are lying on the desk.
No items on the floor. There is nothing under the desk and no unnecessary items
on the floor.

6. The top drawer has a urethane mat to reflect effective MODAPTS use.

7. All other drawers are well organised and neat, containing no unnecessary items.

8. Titles of all files are neatly and clearly indicated

9. No WIP in drawers

10. Regularly used telephone numbers are available close by

6.1.6 Steps to create a model worktable

232 Facilitator's Manual

HOW-TO STEPS

Steps to create a model worktable

1. Decide on the basic design, suitable to the operation.

2. List everything needed to perform the operation (tools, jigs, measuring equipment, etc.);
organise them and decide on a designated area to place them every time.
• Do not place anything not needed to perform the operation in the designated area
• Do not place anything not frequently used, or shared, in the designated area.

3. Designated areas:
• Create a shadow box with cut-outs in the shapes of tools so that tools can be replaced
in the same spot after use. Draw white lines to show designated areas for large items)
• Consider hand motions and frequency of use and follow the principle of motion
economy (MODAPTS) to make the job easier and efficient
• Use a support block or scribe to make it easy to pick up items
• Label names clearly so that anybody can see the various areas.

4. Review the design of worktables according to the way tools / items have been organised.

5. Work standards, inspection standards, one-page standards, quality limit samples, caution
plates, etc. must be visually displayed to ensure that everyone works in the same manner.

6. Set up a control board, clearly outlining today's, tomorrow's, current and next jobs.

7. Paperwork must be filed in trays and boxes in order to eliminate mistakes and to perform
work efficiently.

8. Computer / machines cables must be tied, and fixed to the worktable.

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6.1.7 Criteria for a model machine

Criteria
Critical
forSuccess
a ModelFactor
Machine /X

1. Tools and equipment are placed in such a way that work is easy for the operator(s) and
each piece of equipment has its own allocated place. Frequently used tools, organised
visually, are placed on or close to the machine in clearly demarcated places,
(MODAPTS) easy and safe to retrieve.
• Important documents are placed on or close to the machine in such a way that they
can be found at a glance. Files are indexed in such a way that there is no need to
page through and search for the correct information. Single minute changeover
and single minute information retrieval are made possible.

2. The machine / work table is not rusty (it is clean and painted). Indicators and screens
are sparkling clean and easily readable, even from a distance. The following is clearly
indicated on the machine:
• On / off switch
• Emergency switch
• Manufacturer's details.

3. All raw material, WIP and finished goods are only placed in allocated areas and
demarcated, relevant to the model machine, near the machine and are visible at a
glance.
• Minimum and maximum levels for material, parts, WIP and finished goods are
visually indicated.
• Coupling rules (like the first-in-first-out rule) are clearly defined and are applied in
these storage areas.

4. Nothing is placed underneath work tables or machines. Work-in-process, materials,

finished goods, tools, parts and other items are not placed directly on the floor.

5. Personal items are stored in a demarcated place and are well organised.

6. The following documents (one-page standards) should be near the machine:

• Standard operating procedure
• Start-up
• Shut-down
• Changeover
• Setting
• Cleaning, lubrication and maintenance procedure
• Troubleshooting
• Quality assurance
• A sign on the machine indicates who is responsible for its maintenance
• A maintenance log which is kept up to date with history of breakdowns and causes
• Graphs, visually displayed, indicate machine performance (e.g., OEE or EOR)
against target and analysis of non-performance, e.g. pareto analysis plus plan of
action.

234 Facilitator's Manual

6.1.8 Single minute information retrieval and changeover

HOW-TO STEPS
Critical Success Factor

Certifying single minute retrieval and changeovers

1. Firstly, a shelf is selected and all team members sit at their workplaces.

2. 10 Questions are prepared and relate to subjects in the applicable files. These questions
will be posed to team members, who will have to retrieve the required information from
the files

3. The questions are now consecutively posed to team members. If the information is
found within a minute, it is regarded as a quick file retrieval. If each of the 10 questions
are answered within a minute, the shelf can be certified

4. On the shopfloor, both quick changeover and quick retrieval of documents are required

S S
Changeover File

6.1.9 Criteria for model stores

Criteria
Criticalfor ModelFactor
Success Stores /X

1. Stores are indicated by pink frames

2. Display the store manager's name on a signboard

3. There are no unnecessary objects, non-urgent products or defects in the store

4. Locations for finished products serve as stores on the shopfloor

5. All offices have a store for stationery and forms

6. Re-order levels (to reduce WIP) are clear

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6.2 International awards

6.2.1 International Excellence Award

Criteria for International

Critical Success
Excellence
Factor Award /X

• The total benchmarking score on all Keys must be 55 or more.

• Keys 1, 2, 5, 6, 8, 9, 10, 11, 13 and 15 must be at level 3 or more. Others must be at level
2,5 or more.

• All workplaces must be certified as a “4S Level 3 Workplace” including offices. There
should be no hidden areas / rooms.

• Defect rate must be less than half the rate at the start of implementation of the 20 Keys.

• Productivity must be 150% since the start of the 20 Keys.

• Work-in-process must have been reduced by 25%.

• At least four multi-level meetings must have been held.

• The company must be profitable.

1 20
9 11 12
7 16
14 5

6 4

17 8
18 15
19 10 13
2 3

PRACTICAL PROGRAM OF
REVOLUTION IN FACTORIES

A W A R D

International Excellence Award

awarded to

May 2006

PDI (Japan)

236 Facilitator's Manual

6.2.2 International Bronze Award

Criteria for International Bronze Awards

One evaluation for the whole company and one for each department
Evaluation
Item Date
Fill in or X
20 Keys score: Over 65 points – 10 or more Keys
1
score 3.5 points or higher
2 Requirements fulfilled for 4S 3.5 points workplace

3 Productivity doubled (output per man-hour)

4 Defect rate reduced by 80% or more

5 Work-in process*: Reduced by 50% or more

The whole organisation from top to bottom works
6 together as one team (to achieve the goals of the
business)

7 Over 95% of all company objectives are achieved

(>95% is green in 3-colour-evaluation)
8 70% + on 20 Keys questionnaire

* WIP – Defined as all WIP from raw materials to finished goods, not yet sold.

Refer to Chapter 5 for benchmarking requirements for Level 3 and Level 3.5.

Flow towards achieving the International Bronze Award

Actions Period

20 Keys implemented and study of all 20 Keys

Nine to
1 started. Three to five Keys have been started with
12 months
action plans
2 Kick-off. Implementation of all 20 Keys At least three
years after all
3 4S Level 3 certificate
20 Keys are
4 All workplaces have been certified as 4S Level 3.5 implemented

Audit for Bronze Award criteria. This will be Six months to one
5 year before the
conducted for each section / department and the award can be
whole company respectively expected

Final inspection for Bronze Award. Counter Six months to

5 one year
measures for the audit must be done
One-day audit for Bronze Award. Bronze Award
6 0 days
made after that

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Recommended schedule for final bronze award certificate

09h0 – 12h00 Walking tour of the factory

Please
Five minute presentation and explanation of results of each prepare a
13h30 – 15h30 Key from each 20 Keys leader made to employees and Prof. printout of
Kobayashi. Presentation to include graphs, photos, 3-colour all these
evaluation chart, etc. results plus
a CD for
Presentation on the results from each section. This should Prof.
15h40 – 17h30 include all sections (indirect divisions). Here, a presentation Kobayashi
on the eight criteria and their details will be made

17h30 Presentation of the award, should everything be acceptable

6.2.3 International Silver Award

Criteria for
Critical
International
SuccessSilver
Factoraward /X

1. Over 75 points on the 20 Keys

2. Stable Level 3.5

3. Tripled productivity

4. Defect rate less than 1/10

5. Work in process less than ¼

6. Color evaluation all green

7. Coupled manufacturing complete - seamless

8. Management matrix is fully utilized

9. Company can respond quickly to market environment changes

10. Over 85% - 20 Keys questionnaire

238 Facilitator's Manual

6.2.4 20 Keys questionnaire

Questionnaire

I can see that the 20 Keys is a company-wide activity and different from
all other improvement programmes previously implemented
I have a 70% or greater understanding of the contents of all the 20 Keys
I have a 70% or greater understanding of the policies, objectives and
action plans of my own section and workplace
I understand that the 20 Keys can improve the basic constitution of a
company
I am sure that implementation of all 20 Keys in an integrated fashion will
bring about significant results
I am sure that multi-level meetings are meaningful
We hold multi-level meetings within our section or workplace as not all
employees can attend corporate meetings
My manager / first-line manager often talks to us about the 20 Keys and
about how we, as a team, can improve
Knowledge acquired through 20 Keys training is being actively utilised
We have enough “report, communicate, consult and respect”, both
vertically and horizontally, in our workplace
I actively participate in 20 Keys activities in my workplace
70% or more people in our department actively participate in 20 Keys
activities
My skills have been improved through the 20 Keys activity within our
company
I actively participate in the 20 Keys as it provides me with the
opportunity to express myself and to implement my ideas in the
20 Keys has visibly improved the company and the constitution of the
company
The 20 Keys has improved customer satisfaction
The image of my company and its recognition has been raised through
the 20 Keys
I actively participate in 20 Keys study sessions and presentations held
every month
My manager / first-line manager gives us feedback on 20 Keys progress
all the time
Both direct and indirect divisions are involved in the 20 Keys
Score:

Maximum: 100

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