Assignment (2)

20 Keys Of Lwao Kobayashi

Introduction:
The 20 Keys system was developed in Japan by Iwao Kobayashi when he, after completing industrial
studies at university, joined Mitsubishi Heavy Industries. Soon after joining them, he developed the
first mixed-lot automated assembly line in Japan (and arguably in the world).

Lwao Kobayashi was also known as the expert in Japan on quick changeover technology, and shared
learning experiences with other great Japanese engineers like Taiicho Ohno, and Shigeo Shingeo.

Practical, in the workplace learning together with inputs from employees, the shopfloor and
production technologies, led to the development of the 20 Keys.

Lwao Kobayashi later authorized a timeless book on productivity improvement, “20 Keys to
Workplace Improvement’.

Aims
 Implement best practices to achieve world class, operational excellence.
 Achieve the strategic goals of the business.
 Improve the speed of learning and innovation of the business.
 Identify and 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.
 Energize and motivate all employees to work towards the achievement of goals.
 Improve productivity, profitability and the long-term sustainable competitiveness of the
business
Features
 Comprises of 20 very practical and synergistically integrated key methods required to
strengthen the organization’s delivery system, focusing on making products and services
better, faster and cheaper.
 20 Keys is the roadmap towards a World Class company.
 Creates a common vision of where we are (AS-IS), and where we want to be (TO-BE), as well
as establishing a common language for improvement.
 A well-proven methodology for sustainable business improvement.
 A comprehensive benchmarking system, used in-house to monitor improvement progress that
utilizes visual descriptions (maps) and detailed check sheets to depict the levels of
improvement towards world class performance.
 Involves everyone in the organization on all levels and functions.
 Builds upon and strengthens current initiatives (ISO, HACCP, 6 Sigma, Lean, CRM, etc.

Benefits
20 Keys involves all employees in the accomplishment of the overall company goals – improved
quality, reduced costs, improved delivery (throughput time) and service, high morale and a safe work
environment. Many companies report significant improvements in terms of:

 Productivity increases (up to 200%),

 Reduction of defects / errors (up to 80%),
 Reduction of inventory / WIP (up to 50%),
 Significant cost reductions (up to 20% overall),
 Strengthening the skills of all employees,
 Improved morale
 Better communication and an understanding of the business goals and issues influencing
those goals, with an overall benchmark score improvement of (20 – 40 points) over a three
year period
 20 Keys Of Lwao Kobayashi

Key 1 (Cleaning and Organizing to Make Work Easy):

 The main objective of Key 1 is to make work safer, easier, and more productive, by creating
organized and clean workplaces that all people are proud of. This leads to energized work
teams, improved motivation, and improved productivity of people and machines
 Key Concepts (Clean & Organize For):
• Making work easier
• Creating a safe workplace
• Efficient working
• Efficient workflow
• Saving costs
• Clean and environmentally friendly workplace
• Functionally beautiful workplace, in which people have pride
 Techniques:
• 4S process
• MODAPTS (Modular Arrangement of Predetermined Time Standards) and ergonomics
to make work more safe, efficient, and easy
• Visual organization
• Key 1 check sheet for different workplaces, and map
  Implementation Approach:
 Train teams in Key 1, allocate responsibility areas, and implement the CAPDo (Check,
Analyze, Plan and Do) cycle for continuous improvement. Do regular progress reviews
(Check), with Key 1 check sheet and map

KEY 2 (Goal Alignment):

 Key 2 focuses on having an effective organization structure, with goal alignment at all levels.
Within the structure, the various work groups are organized as “mini-businesses”, or MBs.
Each MB is guided by Quality, Cost, Delivery, Safety and Morale performance indicators
(QCDSM measures)
 Key Concepts:
• Effective organization structure, with clearly defined responsibilities
• Coaching on employee performance development
• Defining and cascading vision, mission, values, and goals down to all organization
levels
• Implementing mini-businesses
• Aligning top down leadership, and bottom-up participation
• Implementing a management system for the implementation of the 20 Keys
 Techniques:
• Policy deployment, and goal alignment
• Implementing a balanced goal measurement scorecard of Quality, Cost Effectiveness,
Delivery (QCD) (focus on customer (including the next process) value provided, and
retention), Safety and Morale (focus on employee motivation and wellbeing)
• Mini-business management, especially by first-line leader/supervisors
• Service level agreements between up- and downstream processes (mini-businesses)
• Multi-level meetings
• 3-Item Kit (Overall Implementation Plan, Basic Policy, and Goal Achievement Matrix)
• Promotion organization
• First-line management development programs, and learner ships
• Key 2 check sheet and map
  Implementation Approach:
 Do a workshop with management on goal alignment, and draw up an implementation
Action plan for aligning and implementing QCDSM measures and objectives, at all
organizational levels. Do training with first-line managers on mini-business management,
and implement mini-businesses with an agreed list of visual information displayed in the
mini-business area. Use the mini-business coaching checklist for measuring progress, and
providing coaching. Apply the CAPDo cycle for the regular review of the Key 2
implementation action plan, as well as the maturity level of Key 2.

KEY 3 (Small Group Activities; SGAs):

 Key 3 involves forming small groups, who get together to solve problems. These problem
solving groups are called SGAs (small group activities). A SGA consists of a small group who
“brainstorm” specific problems relating to quality, cost effectiveness, delivery, safety, etc., and who
then addresses identified issues by using the SGA methodology, and various tools and
techniques. Key 3 also engages everyone with thinking about improvements which might not
necessarily require a small group for improvement (suggestions and innovations).
 Key Concepts:
• Implementing suggestions for improvement
• Forming multi-disciplinary small groups for solving problems, or focusing on improvement
themes
• Team working
• Thinking people
• Using SGAs as the approach for problem solving, autonomously, by teams
 Techniques:
• Facilitating small group activities
• Suggestion/innovation management system
• Brainstorming
• Root cause analysis
• Kaizen Blitz
• Various other tools and techniques, used as team maturity levels increase
• Key 3 map
  Implementation Approach:
 Start a suggestion/innovation management system in mini-businesses. Identify
opportunities for operations improvement, and form a small group to address it. Provide
training in the SGA methodology, and appropriate tools and techniques. Apply the CAPDo
cycle for regularly reviewing the Key 3 implementation action plan, as well as the maturity
level of Key 3.

KEY 4 (Reducing Work-in-Process; WIP):

 The Key 4 approach, together with other Keys, enables an organization to reduce work-in-
process (WIP), thereby achieving space savings, reducing working capital, having shorter
customer supply lead times, as well as other inventory reduction related benefits.
 Key Concepts:
• Continuously reduce work-in-process; all inventory in the process of converting raw
material into finished goods stock
• Work-in-process causes many problems, and hides other problems
• Work-in-process levels are influenced by both operations and strategic issues
• Key 4 is highly integrated with other Keys, especially Keys 5, 8, 16
 Techniques:
• Process flow mapping
• Eliminating the seven wastes
• Four-step methodology (create a flowchart, decide what to work on, define the
implementation team, implement the improved process)
• Rules for reducing WIP (incorporated in the four-step process)
• Implement appropriate coupling methods (Key 8)
• Implement quick changeover methods (Key 5)
• Analysis of the impact on operations (capacities, changeovers, quality, maintenance,
coupling, suppliers, scheduling, etc.) and strategic issues (marketing, sales decisions,
forecasting, product range, performance measurement, etc.) on WIP levels
• Key 4 map
  Implementation Approach:
 Have a training workshop with management, and identify operations and strategic
improvement opportunities for reducing WIP. Draw up a Key 4 implementation action
plan, and start implementation in identified priority areas. Train shop floor teams in
relevant principles for implementation. Implement a measurement system for monitoring
WIP levels. Apply the CAPDo cycle for the regular review of the Key 4 implementation
action plan, as well as achieving the target maturity level of Key 4.

KEY 5 (Quick Changeover Technology):

 Key 5 provides a methodology for continuously reducing changeover times. Doing this has an
impact on reducing inventory in the system, as well as on becoming more flexible in quickly
supplying different products to customers.
 Key Concepts:
• Reduce inventory lead times to supply customers, and improve flexibility of production
• Roll out the process via pilot areas, with model changeover teams
• Objective of single minutes changeover, and single minute information retrieval, and
ultimately, single cycle changeover times
• Changeover time is the time from the last of a good product (A), to the first of a good
product (B)
 Techniques:
• Internal changeover times vs. external changeover times
• Five-step methodology for reducing changeover times (analyze the changeover, move
internal operations to external operations, reduce internal operations time, reduce external
operations time, standardize with a standard operating procedure)
• Single minutes (9 or less) changeovers - single minute’s exchange of dies (SMED)
• Single minute information retrieval (SMIR)
• Use other Keys, especially Keys 1 and 15
• Model changeover teams
• Key 5 map
  Implementation Approach:
 Train teams (production and supporting functions) in the concepts of Key 5, single
minute’s changeover, and single minute information retrieval, and how to follow the 5-step
methodology for reducing changeover times. Identify priorities, and use model
changeover teams for analyzing and reducing times. Apply the CAPDo cycle for the
regular review of the Key 5 implementation action plan, as well as achieving the target
maturity level of Key 5

KEY 6 (Kaizen of Operations):

 With Key 6, processes and procedures are analyzed, with the objective of improving productivity.
Processes and procedures are studied for improvement by means of process flow diagrams like
activity flow diagrams and physical flow diagrams, as well as operation improvement sheets.
 Key Concepts:
• Improve productivity through ongoing analysis and improvement of processes, procedures
and tasks, in production and supporting functions
• Levels of Kaizen (spot, line, area, volumetric); from a very narrow, to a holistic focus
• Value analysis of processes, procedures and tasks; eliminating/reducing non-value adding
activities
• Ongoing improvement of procedures with the standard operating procedure (SOP) as
basis
• Focus on productivity improvement in all production and supporting functions
 Techniques:
• Five-step improvement process (identify and document the process, value analysis (VA) of
activities in the process, develop an improvement plan, improve the process, and
standardize the process (SOP)
• Activity/process flow and physical flow diagrams
• Operations improvement sheet (OIS)
• Standard operating procedure (SOP)
• Guidelines and questioning techniques for improving processes, procedures and tasks
(5 WHYs, 5W2H, etc.)
• Kaizen of operations in the process industry
• Impact projects
• Key 6 map
  Implementation Approach:
 Train teams (production and supporting functions) in the concepts of Key 6, and how to
follow the 5-step methodology for analyzing and improving processes, procedures and
tasks. Identify priority processes, procedures and tasks, and use small groups for
analyzing and improving it. Apply the CAPDo cycle for the regular review of the Key 6
implementation action plan, as well as achieving the target maturity level of Key 6

KEY 7 (Zero Monitor Manufacturing / Production):

 This Key focuses on the elimination of waste in the form of monitoring. Equipment monitoring, for
example, watching machines while they run, or monitoring it to detect possible defects is not value
adding. Equipment and machines must be improved so that there are no problems, or no defects
are produced in the first place. The same principle applies to the monitoring of people while they
work; if trained, they should be able to work without someone monitoring their activities, and
where there is an issue, they should ask for support.
 Key Concepts:
 Eliminate the waste of monitoring
 Strive for zero defects
 Roll out the process via pilot areas
 Self-regulating, and self-interrupting equipment
 Balanced work and production flow
 Techniques:
 Man-machine charts
 One-page standards (OPS) for indirect functions
 Line and workflow balancing
 Key 7 map
 Implementation Approach:
Select a pilot area for implementation, where there is quality or other issues requiring frequent
human intervention or where there is waiting time because of an imbalance in capacity/manning
on a production line. Do Key 7 training. Draw up a man-machine chart to identify opportunities for
reducing monitoring, and improving machine performance. In the case of a line imbalance, do a
line balancing exercise. Once monitoring/waiting has been reduced, identify the next area to focus
on. Apply the CAPDo cycle for the regular review of the Key 7 implementation action plan, as well
as for achieving the target maturity level of Key 7
KEY 8 (Coupled Manufacturing/Production):
 Coupled manufacturing is about a strategy, and methods to link processes in order to ensure a
smooth, fast process, product and information flow, with low inventory levels, and effective
communication between the different up- and downstream processes/functions
 Key Concepts:
• Streamlining the flow of material, products and information through the organization, by
having effective coupling methods and teamwork between up- and downstream processes
• Coupling methods are about communication, and functional and physical links between
processes and functions
• Implement a coupling strategy, and appropriate coupling methods (various methods
described in Key 8)
• Highly integrated with other Keys, especially Keys 1, 4 and 16
 Techniques:
• Coupling strategy
• Visual management (and Key 1 implementation) at coupling points
• Kanban systems
• Synchronous production system, with bottleneck and buffer management
• Cellular manufacturing
• Goldfish bowl meetings to improve flow of information, and teamwork between
departments
• Four-step methodology (determine how processes are linked, reduce inventory levels,
reduce coupling points, combine processes)
• Key 8 map
 Implementation Approach:
Map the processes and product flow to gain an understanding of where inventory is kept, and how
processes are linked. Have training workshops with management and teams on the concepts and
methods of Key 8, what the best coupling strategy for the organization is, as well as appropriate
coupling methods. Draw up a Key 8 implementation action plan, and start implementation in
identified priority areas. Apply the CAPDo cycle for the regular review of the Key 8 implementation
action plan, as well as achieving the target maturity level of Key 8
KEY 9 (Maintaining Machines & Equipment):
 The main focus of this Key is on improving the effectiveness of machines and equipment. This
is done by involving the operators and users of the equipment with first-line maintenance, by doing
daily and routine preventive maintenance tasks, and correctly operating equipment, with
maintenance artisans and engineers focusing on implementing the maintenance strategy, and
using proactive maintenance management methods for sustaining high levels of equipment
effectiveness
 Key Concepts:
 Effective maintenance is a joint venture between operators and the
maintenance/engineering function
 Improving overall equipment effectiveness (OEE)
 Keeping equipment logs, and performance history for equipment
 Preventive maintenance of machines/equipment (roll out process by starting with
important machines/equipment)
 Techniques:
 Eliminating the three evils (inadequate lubrication, cleaning and mishandling of
equipment)
 Preventive maintenance (PM)
 Model machines
 Using OEE as a diagnostic tool
 Machine/equipment log books, recording of equipment history
 Maintenance strategy/blueprint (specifying structure, roles, and responsibilities)
 Standard operating procedures and checklists, for use by Maintenance and Production
 Improvement maintenance, and root cause analysis
 Key 9 check sheet and map
 Implementation Approach:
Have a training workshop with the Maintenance function, and identify improvement opportunities
based on Key 9 principles, and the check sheet. Draw up a Key 9 implementation action plan.
Train shop floor teams in relevant principles for implementation. Implement a measurement
system for monitoring equipment effectiveness, with relevant KPIs for Maintenance and
Production. Apply the CAPDo cycle for the regular review of the Key 9 implementation action plan,
as well as achieving the target maturity level of Key 9
KEY 10 (Workplace Discipline):
 This Key focuses on the creation of a positive atmosphere, maintaining a high level of
commitment in the workplace, and respect amongst people. Attitudes that are promoted include
adherence to values, organization policies and rules, safety, Key 1 discipline, and time discipline.
The emphasis is on the application of self-discipline by all
 Key Concepts:
• Self-discipline by teams in terms of workplace related disciplines, policies, and rules
• Value adding work habits
• Regular communication/meetings about work schedules, and issues to be addresses
• Positive, friendly work atmosphere, with respect between people
 Techniques:
• Structured start of the day/shift meetings, with agendas and minutes
• Key 1 walkabouts, and progress reviews
• Visual management (attendance charts, whereabouts boards, visual workplans, and
schedules)
• Eliminating non-value adding activities
• Applying good work order rules (respect, consult, communicate, report)
• Key 10 check sheet and map
 Implementation Approach:
Train mini-business managers in the concepts of Key 10, who then implement it with their teams.
Have 2-monthly discussions with mini-business managers on Key 10 issues in the workplace, by
using the Key 10 check sheet. Apply the CAPDo cycle based on this review (Check), with
resulting action plans implemented by the mini-businesses. Implement visual management in
support of this.
KEY 11 (Quality Assurance)
 The aim of Key 11 is to assure quality at source, through a quality focused workplace. The
ultimate aims to achieve zero defects, and non-conformances, by having high levels of process
capability, where right first time quality is produced, with quality built into the process
 Key Concepts:
• Assuring quality at source
• The next process is the customer
• Striving for zero defects
• Autonomous inspection
• Measurement, quick feedback, and communication about problems (quick time to detect,
and time to correct)
• Implementing an effective quality control system
 Techniques:
• Service level agreements between processes
• Standard operating procedures, for assuring quality
• Seven quality control tools (Pareto Diagram, Fishbone Diagram, Process Control
chart, Histogram, Scatter Diagram, Run Chart, Checklist)
• Mistake-proof devices and systems
• Quality measurement system, with KPIs for Quality and Production functions
• Inspection at source
• Autonomous quality inspection checklists
• Limit samples
• Key 11 check sheet and map
 Implementation Approach:
Train the Quality Department and Production teams in the concepts of Key 11. Identify
improvement opportunities, based on Key 11 principles, and the check sheet, and draw up an
implementation action plan, with relevant KPIs for Quality and Production. Apply the CAPDo cycle
for the regular review of the Key 11 implementation action plan, as well as achieving the target
maturity level of Key 11
KEY 12 (Developing your Suppliers)
 This Key is about developing external suppliers of material and services, based on the
principle that suppliers are partners in the value chain. It introduces a formal method for managing
and developing suppliers, based on a supplier development strategy, supplier service
agreements, and measurement of supplier performance. The principles are also applied to internal
suppliers (upstream processes)
 Key Concepts:
 Optimizing value across the supply chain, from external suppliers, to the customer
 The upstream process is a supplier to the downstream process
 Treating suppliers as partners
 Supplier support and development
 Introducing suppliers to operations excellence concepts (20 Keys)
 Techniques:
 Process for managing suppliers
 Supplier development strategy (including service level agreements, and supplier
performance management systems)
 Value engineering (VE) and value analysis (VA) projects with suppliers
 Supplier development programs
 Introduce/assist with improvement of supplier quality, cost effectiveness, and delivery
performance (through the 20 Keys)
 Supplier visits
 Supplier prioritization
 Key 12 map
 Implementation Approach:
Discuss the importance of suppliers being partners in the value chain, and which strategy will be
followed for development of suppliers (with management). Priorities suppliers, and draw up a
supplier development strategy. Implement a supplier performance management system, and
identify opportunities for working together with suppliers to improve quality, cost effectiveness, and
delivery of supplies. Apply the CAPDo cycle for the regular review of the Key 12 implementation
action plan, as well as achieving the target maturity level of Key 12
KEY 13 (Eliminating Wasteful Activities)
 Key 13 is about the elimination of wasteful activities in the workplace. Seen in a broad context,
waste is anything that doesn’t add value. With this Key, the focus is on time wastage, and
specifically, how people spend their time in the workplace. The aim is to increase the time spent
on value adding tasks
 Key Concepts:
• Create awareness of wasteful activities amongst all teams (e.g., searching, walking, and
waiting)
• Ongoing focus on increasing the value adding work rate
• Measurement of how time is spent in the workplace, then “mining” out waste (identified
opportunities)
• Focus on eliminating wasteful activities in production and all supporting functions
 Techniques:
• Measurement and tracking of the value adding work rate (% value adding work)
• Activity sampling (done by team members themselves), to identify types and magnitude of
wasteful activities
• Use of the Treasure Map, to identify opportunities and priorities for reducing wasteful
activities
• Visual management (visual indication of three top priorities for eliminating wasteful
activities, on the Treasure Map)
• Key 13 map
 Implementation Approach:
Train teams in the concepts of Key 13, and what value adding and non-value adding activities are
about. Start identifying opportunities in all workplaces, to eliminate time wasters, and to encourage
suggestions about it. Schedule regular (three to four times per year) activity sampling (AS)
exercises. First train managers in doing AS, and then train team members. Apply the CAPDo
cycle for the regular review of the Key 13 implementation action plan, as well as achieving the
target maturity level of Key 13
KEY 14 (Empowering Employees to Make Improvements)
 Team empowerment is characterized by well-informed, multi-skilled team members that take
initiative, are able to investigate problems, are empowered to make decisions, and implement
improvements suggested
 Key Concepts:
• Encourage and support people to give suggestions for improvement
• People are given the training and support to implement their own ideas
• Roll out process of Kaizen/improvement corners in the workplace
• Management empowering employees to work autonomously, and to implement
improvements
 Techniques:
• Suggestions/ideas management system (Key 3)
• Kaizen/improvement corners
• Empowerment model (Direction, Support, Ownership)
• Skill development (Key 15)
• Improvement exhibition and contest (e.g., for carts and trolleys made, and other
improvements implemented)
• Key 14 map
 Implementation Approach:
Train teams in the concepts of Key 14, and effectively using the suggestions/ideas management
system (Key 3). Train first-line managers in the Empowerment Model, and coach them on its
application. Identify priority areas for implementing the concepts of Kaizen corners, and draw up
an implementation plan. Apply the CAPDo cycle for the regular review of the Key 14
implementation action plan, as well as achieving the target maturity level of Key 14
KEY 15 (Skill Versatility and Cross Training)
 Skill versatility and cross training is about ongoing implementation of learning and
development as part of the business strategy, to develop individuals to have more skills, and
higher levels of competencies. Apart from individual development, the aim is also to have flexible
teams, with a high level of skill versatility within, and between all teams; in production and
supporting functions
 Key Concepts:
 Flexibility for teams and the organization, and skill development opportunities for
individuals
 Skill versatility through cross training
 Making work easier, to facilitate on-the-job cross training
 Start within teams with skill development, then address opportunities between teams
 Tracking progress of skill development with skills matrices
 Techniques:
 Employee induction
 Skills matrix
 Skill development plan and schedule
 Team skill competence graph
 Rule of 3x3, as objective for team skill versatility level
 Standard operating procedures
 Making work easy (through implementation of other Keys), for people to learn additional
skills
 Key 15 map
 Implementation Approach:
Draw up a skill development policy. Train teams in the concepts of Key 15, and how to implement
skills matrices, as well as training plans and schedules. Draw up skills matrices with defined
targets for skill versatility (use the rule of 3x3, and monitor skill development against defined team
targets). Apply the CAPDo cycle for the regular review of the Key 15 implementation action plan,
as well as achieving the target maturity level of Key 15
KEY 16 (Production Scheduling)
The aim of Key 16 is to ensure consistent, high levels of achieving production and work schedules,
and on-time delivery to customers. Scheduling principles implemented include backwards/reverse
planning and scheduling, finite scheduling, schedule achievement measurement at control points,
load leveling, work tracking, and visual management
 Key Concepts:
• High levels of on-time delivery of products and services
• Flexibility to quickly accommodate fluctuating market requirements
• Planning, scheduling and control of all resources in the process of converting raw material
into finished goods
• Highly integrated with other Keys, especially Keys 8 and 18
 Techniques:
• Use appropriate production scheduling methods (various methods described in Key 16)
• Measurement of work and production schedule achievement, and on-time delivery
performance
• MRPII, and other system concepts
• Bottleneck / constraint management scheduling approaches
• Visual management (for example, using planning boards, displaying schedules, Gantt
charts)
• Load leveling
 Implementation Approach:
Have training workshops with management and teams on the concepts and methods of Key 16.
Analyze the current scheduling and work planning approach, and on-time production and delivery
performances, and decide how it can be strengthened. Draw up a Key 16 implementation action
plan, and start implementation in identified priority areas. Apply the CAPDo cycle for the regular
review of the Key 16 implementation action plan, as well as achieving the target maturity level of
Key 16
KEY 17 (Efficiency Control)
 With efficiency control, realistic and motivating output rates and targets are established for
processes and tasks, with the involvement of teams in production and supporting functions. Actual
performance is measured against targets, for teams to control their performance
 Key Concepts:
 Teams understand what efficiency is all about, how it is measured, and reasons for not
achieving targets
 Motivate people with having realistic efficiency targets, and involve them in setting the
standards (targets)
 Teams control their efficiency by tracking information; actual performance vs. target
 Short interval control of efficiency, to support teams to quickly act on deviations from
standard
 Techniques:
 Measurement of efficiency. Efficiency (for physical units) = Actual Output / Standard Output
 Efficiency (for time) = Standard Labor Hours / Actual Labor Hours
 Using visual performance management for efficiency control
 Setting of time standards - direct observation method
 Setting of time standards - rated observation method
 Setting of time standards - compared methods (MODAPTS, MTM, PMTS)
 Using the Key 17 ABC method for measuring efficiency
 Equipment operating rate for controlling equipment performance; availability and efficiency
 Key 17 map and check sheet
 Implementation Approach:
Train all teams (production and supporting functions) in what efficiency is all about, its
components, understanding reasons for deviations from standard performance, as well as the
other Key 17 concepts. Draw up an implementation plan, and apply the CAPDo cycle for the
regular review of the Key 17 implementation action plan, as well as achieving the target maturity
level of Key 17
KEY 18 (Using Information Systems)
 The emphasis in Key 18 is on having an information systems strategy which is aligned with the
business strategy and objectives, with seamlessly integrated systems in Production and all
supporting functions. Everyone should be trained to effectively and efficiently use systems
relevant to their workplaces, both in terms of day-to-day operations, and as an enabler for
continuous improvement
 Key Concepts:
 Use of information systems to strengthen the constitution/capability of the business
 Seamlessly integrate systems
 Simplify and reduce waste before computerizing task, procedures, and processes
 Use information systems as an enabler for operations improvement, and in support of
the implementation of Keys
 Techniques:
 Implement integrated systems for more effective and efficient operations
 Strategic information systems strategy
 Office automation
 Flexible manufacturing systems (FMS)
 CNC and PLC systems
 ERP systems
 Key 18 map
 Implementation Approach:
Have training workshops with management and teams on the concepts and methods of Key 18.
Analyze the current information systems strategy and systems, and decide how it can be
strengthened. Draw up a Key 18 implementation action plan, and start implementation in identified
priority areas/priority systems. Apply the CAPDo cycle for the regular review of the Key 18
implementation action plan, as well as achieving the target maturity level of Key 18
KEY 19 (Conserving Energy and Materials)
 Key 19 focuses on making people at all levels, and in all functions, aware of how they can help
to save energy and material in their workplaces. Doing this, even in small ways, contributes
greatly towards assisting the organization to be cost effective. Apart from this awareness, it is also
about continuously looking at energy and material saving opportunities, through the
implementation of relevant technologies
 Key Concepts:
 Improving material yield
 Creating a cost awareness and saving culture
 Start with opportunities within the existing infrastructure, then look at using advanced
technologies for achieving further savings
 Link to ISO1400, limit the waste of resources, and be friendly to the environment with
practices like recycling and waste management
 Techniques:
 Visual performance management (of cost, energy and yield) in all teams
 Waste maps
 Cost awareness campaigns, using slogans, and encouraging suggestions for conserving
energy and materials
 Mass balancing
 Drawing up a strategy to conserve energy and materials, and to improve yield
 Researching and implementing advanced technologies for conserving energy and
materials
 Pareto diagram
 Key 19 map
 Implementation Approach:
Train all teams (production and supporting functions) in the concepts of Key 19. Define cost,
energy and material measures and targets for each team, and display it visually in team meeting
areas. Draw up an organization strategy and implementation plan for creating cost, energy and
material usage awareness, and the saving of such costs. Apply the CAPDo cycle for the regular
review of the Key 19 implementation action plan, as well as achieving the target maturity level of
Key 19
KEY 20 (Leading Technology / Site Technology)
 Leading technology refers to the equipment or hardware used, and available to the company,
to design, make, or produce products or services. Site technology is about the set of skills and
know-how the company has acquired and developed over time. The critical aspect in Key 20 is the
speed of technology development, and assimilation
 Key Concepts:
• Site technology (“software”; people skills, knowledge, experience, speed at which new
technology/ products are developed in-house)
• Leading technology (“hardware”; equipment, machines, layout, infrastructure)
• Even if the company is above average compared to others with leading and site
technologies, regular assessments need to be made as, what is new today, will be old very
soon
• Regularly benchmark against industry standards
 Techniques:
• Identification of core technologies (site and leading)
• Development of criteria to do benchmarking on identified core leading and site
technologies
• Regular internal and external benchmarking of leading and site technologies
• Radar charts for leading technologies
• Radar charts for site technologies
• Technology strategy
• Skill versatility (Key 15)
• Knowledge management
• Key 20 map
 Implementation Approach:
Have training workshops with management on the concepts and methods of Key 20, and the
development of benchmarking criteria for identified leading and site technologies. Involve other
levels with benchmarking, and draw up radar charts for leading and site technologies. Draw up a
Key 20 implementation action plan, and update the technology strategy accordingly. Apply the
CAPDo cycle for the regular review of the Key 20 implementation action plan, as well as achieving
the target maturity level of Key 20
The Difference Between Lean Six Sigma, Six Sigma & 20 Keys

 Lean Six Sigma is a perfect fit for companies looking to streamline their processes and offer as
much value to the customer as possible. The phased thinking and clear roadmap provided by
the DMAIC method can be a valuable tool when applied to any business case, not just defect
prevention as in traditional Six Sigma methodology.
 As the line between Lean and Six Sigma continues to blur, entirely new methods and unique
philosophies are bound to emerge. Experts that can help companies manage these intricate
refinements will define the next great innovation in Six Sigma thinking.
 Kobayashi’s 20 keys are a checklist of manufacturing improvement concepts, whereas Six
Sigma is an industry neutral, 5-step process improvement model that takes a single
opportunity from a problem statement to a sustained implementation. Many of The 20 Keys’
concepts are used in Lean Six Sigma but they are included within the relevant phases
 The 20 Keys is a performance improvement system like no other. It is template driven so it’s
repeatable and objective. It engages people in measuring their current performance (baseline)
and it provides a way for them to make decisions about what to work on and how best to
achieve next-level results. Because of this engagement, the 20 Keys ensure that the work
people are doing to improve their processes is relevant to them. Relevance and alignment are
the two most important aspects of successful operational excellence systems.

 20 Keys is the vehicle towards continuous improvement:

1- Create a culture of continuous improvement in the business
2- Implement world class practices in the organization in a sustainable, holistic and participative
way
3- Benchmark yourself against world class practices