6 - Chikara Nakagawa(Taika)_26 TOCPA_Japan_19 May 2016_Eng

8/16/2019 6 - Chikara Nakagawa(Taika)_26 TOCPA_Japan_19 May 2016_Eng

1/21

26th International Conference of the

TOC Practitioners Alliance - TOCPA

www.tocpractice.com 19-20 May 2016 !"#"o#a $apan

TOCによる競合の真似できない競争優位性の獲得

Competitive edge that no competitorscan imitate, gained by TOC

中川中川中川中川智加良智加良智加良智加良

太華工業株式会社太華工業株式会社太華工業株式会社太華工業株式会社

19th May, 2016


2/21

26th International Conference of the TOC Practitioners Alliance - TOCPAwww.tocpractice.com 2

中川智加良

Chikara Nakagawa太華工業株式会社専務取締役

2001年より⽇本アイ・ビー・エムの人事部門の勤務を経て、

2007年にステンレスのコイルセンター・研磨を主⼒事業とする

太華工業株式会社入社。2013年より現職。

TOCに関しては、2011年よりジュントスの⽀援のもと、コイル

センター事業にSDBR、MTAを導入し、大きな成果を上げる。

現在は、研磨事業においてもMTAを導入し、TOCの活用を通じて

さらなる⾶躍を模索している。

[email protected]

Chikara Nakagawa is Managing Director of Taika Industy Co., Ltd,who had worked for HR Department of IBM Japan.

In 2007, joined to Taika Industry, Coil Center business and Polishing Stainless Steel business.

In 2011, he implemented SDBR and MTA into Coil Center business,with support from Juntos, and achieved great results.

Currently, he is working for implementing MTA into Polishing business as well, and seeking further growth through using TOC.


3/21


Case Study

Company profile:

• Taika Industry Co. Ltd.

• Founded in 1957• Sales: 40 million Euro

• # of Employee: 150 people

• 2 plants in Japan

• Product: Stainless steel sheet

• Mode of Supply: Mainly MTO (20% of work orders are released by

MTS for short delivery to specific customers)

The market wants:

• Shorter response time with smaller quantity

• Small size products


4/21


Supply Chain Overview

Coil Shearing(CS)

Sheet Shearing(SS)

Polishing

RM

Distributer

FG

User

User

Distributer

Other Supplier

%cope of the implementation

Plant N

Plant K


5/21


Core Conflict Cloud

&'

&o not ta#e actions to(ecrease yiel( rate

C

Control cost

&

Ta#e actions to

(ecrease yiel( rate)*+. Accept or(ers with a short

(eli,ery timesmall "antity/

*ns"re fle+ile

response to

c"stomers' (eman(

AManae

pro("ction well


6/21


SDB !mplementation

• MTO Injections 1-4 are implemented and therefore:

• The flow is improved.

No excess WIP and reduced Production Lead Time (PLT) from4.8 days to 1.5 days

• Open work orders (WOs) are controlled.

The management monitors Length of Stay (LoS) and the number

of Red and Black WOs

• The flow was improved. However, the following capacity

problems (UDEs) still existed while there was no increasein sales at that moment:

• Often do not have sufficient capacity to meet all demands

• Too much overtime of the resources of Sheet Shearing (SS)


7/21


Observations

• Revealed hidden excess (protective) capacity of the CSresources (as Non-CCR) while the SS resources had no

excess capacity.

• We can improve the flow by choking the release. But, it

does not always bring higher productivity.

• Little’s Law: TP = WIP/CT

• The company had given a quotation of delivery date with

consideration for the available capacity of the production.Yet, the market wants for the company to meet standard

lead time all the time.


8/21


!dentify the !nternal Constraint

• Started implementation of MTO Injections 6-7 with the CCR – the operators of Sheet Shearing (SS)

• The team conducted a work analysis for the CCR andfound some activities that could be offloaded.

5% 34

43%

104

19%

2%

54

10%

Machine Set-up

Roughing Cut

Cut Process

Materia Preparation

Pac!ing

Shipping

Materia post-preparation

"ther


9/21


Distributer

User

"naly#e the Situation

CS SSRM

• The production had stock of fixed-scale items in front ofSS that was directly shipped to customers (as finished

goods) and also served to SS as a material.• These stock items were produced by MTS work orders.

%toc# of fi+e(-scale items


10/21


CS

Roughing

Cut

Cut

Process

SS

SS

CS

C u r r e n t w a y

S u g g e s t e d w a y

Fixed-scale

Cut

Decide $ow to %&ploit the

!nternal Constraint

MTOWO

MTOWO

RoughingCut

CutProcess

Case-by-caseCut

MTSWO

• The team suggested the following idea with the aim ofexploiting the capacity of the CCR (SS).


11/21


IF…

is implemented…

%%'s capacity will e ens"re(

oa( on C% will

e increase(

!7 stoc# of !i+e(-scale

items will e re("n(ant

O"r responsi,eness for short

(eli,ery times will o (own8

iel( rate

will e

(ecrease(8

C% will e o,erloa(e(8

!7 stoc# of

!i+e(-scale items

will e re("ce(

'es, B(T)


12/21


IF…

is implemented…

%%'s capacity will e ens"re(

Trimming NBs

CS has excess capacity. AND

Mechanics to monitor the load/

CS’s capacity is in place

Mindset:Flow is no. consideration

oa( on C% will

e increase(C% will e o,erloa(e(8

!7 stoc# of !i+e(-scale

items will e re("n(ant

O"r responsi,eness for short

(eli,ery times will o (own8

iel( rate

will e

(ecrease(8

!7 stoc# of

!i+e(-scale items

will e re("ce(

!rod"ction #$ is red"cedsi%ni&icantly


13/21


• The company decided to stop placing MTS WOs forbuilding FG stock of fixed-scale items.

• Resources of CS have enough protective capacity. But,the suggested idea demands load increase on them.

• When exploiting the capacity of a CCR, we need to ensure

enough protective capacity of Non-CCRs.

• Therefore, in order to fully focus on the internalconstraint, we have to monitor and manage the load onNon-CCRs to prevent them from being overloaded.

Subordinate to the Decision


14/21


*onitoring the +oad


15/21


esults

In,entory T"rns :et Profit

26

29

;3


16/21


esults


17/21


Ne&t Challenge

• The improved performance of the production isrecognized by the market, and it led to receiving more

customer orders.

• Sales people are happy with the excellent service level ofthe production through the TOC solution.

• However, the increased demand starts to cause theresources of CS to become CCR.

• Should we return to the previous way?


18/21


*T" !mplementation

Coil Shearing

(CS)

Sheet Shearing

(SS)

Polishing

RM

Distributer

FG

User

User

Distributer

Plant N

Plant K


19/21


hy *T"-

• The Managing Director asked me to conduct a Management

Workshop to introduce the concept of managing stock the

TOC way.• Plant N gave purchase orders (POs) to Plant K, and hence

the raw materials (RMs) were supplied by MTO.

• Due to the fact that their supply lead time was longer thancustomer’s tolerance time, some POs were placed by using

a forecast.

• Consequently, Plant N had both shortages and excess

stock of RMs, and it led to placing urgent orders that killed

the capacity of CS resources of Plant K.


20/21


*T" !mplementation

• Carefully selected 17 SKUs as MTA items and has kept

100% availability for one month while reducing on-hand

stock by 30%.

• During the implementation, we had following difficulties:

• Minimum batch policy from quality aspects

• Recorded consumption did not represent the real demand.

RMs are withdraw when sales people tentatively book necessary

stock for fictitious orders based on a forecast.

• Too big quantity of consumption within a short period

• Now added 7 SKUs, hence 24 SKUs are supplied by MTA.


21/21


DB* eport

Documents

6 - Chikara Nakagawa(Taika)_26 TOCPA_Japan_19 May 2016_Eng