Obvious problem: Loss of not being able to use the guidance manual and organization chart
1. The guidance manual is folded up and placed in the storage rack in the order in which they are written up; all are stored in one place. In order to borrow one, a worker must have the permission of his superior, which is inconvenient when on needs the manual right away.
2. The guidance manual and organization chart are, along with the operation instructions, stored as described in (1). There are times, however, when they are missing. Consequently they are not used often and this is a cause of loss.
3. When the organization chart is missing and a worker is responsible for two machines, he doesn’t know which machine does what operation and mistakes are made.
Next, Joseph organized the losses which are caused by these conditions.
Occurring Losses: Reduction of added value, Reduction of quality, and Increase of fixed cost ratio
1. The responsibility for quality which each worker has is not clear, so individuals cannot be evaluated for their quality record; education and training are, thus, no more than a formality and the problem becomes chronic.
2. The responsibility of each worker for production is not clear therefore individuals cannot be evaluated from their production record. Education and training are, thus, no more than a formality, and production goals are never met (decrease in added value, increase in fixed cost ratio).
3. Deadlines are always missed and schedules delayed.
4. The organization chart has bad “line balance” and neither this nor the guidance manual are helpful in PQCD (production, quality, cost, delivery) control resulting in decrease in quality and added value increase in cost and fixed cost ratio.
Next Joseph with the cooperation of his superior studied the purpose of the guidance manual and organization chart. Then he interviewed the people who wrote them, the workers who used them and the superiors who had workers use them, and asked them “Why don’t workers use these? Then he organized the causes and presented them as follows.
Causes of loss: Guidance manual is written too generally, the organization chart in too much detail and as they are both stored in the racks, they cannot be obtained easily.
The operation units that the guidance manual has used are about the same as the production quantity planned for the maximum production time. Therefore, when production quantity increases and production time is less, it can’t be used for man hour load adjustment, and man hour organization for increased production. The cause of this is that the content of the organization chart and the guidance manual is almost the same. Usually, a three to six page guidance manual would be written for an organization chart of one page.
The guidance manuals are not placed in their storage racks in “reorganization” standard groupings by part, process, and operation, but are placed as they are written and numbered consecutively. It takes time to search for them, work is stopped and losses are incurred.
Organization charts are too detailed to serve their intended purpose. This is the reason they are not read or used.
Guidance manuals are not revised when operations are improved Operation times have been made shorter in some cases.
Organization charts should be made up in the workshop right after changes have been made in production levels, but they are made up by superiors at a rate of about once a month. This means that production goals are not clear, and work is always being speeded up or slowed down to adjust to the changes.
It takes too long to write up an organization chart, so its job of adjusting the man hour load to deal with the change in production level has to be ignored.
The format of the organization chart is often too big or too long, so that it cannot be stored easily or uniformly. It does not fit in the storage rack.