Red Tag Strategy

RED-TAG STRATEGY Achieving Excellence Through Japanese Technique

5S

CONTENTS Introduction Relation to 5S Steps in the RED-TAG Strategy RED-TAG with Computers RED-TAG episodes: Laughing and learning Case study: The Strategy at a Company Promoting RED-TAG Strategy References to use for Implementation 5 Keys to a successful implementation 5 suggestions about the Implementation

5S relation 5S represents 5 disciplines for maintaining a visual workplace. These are foundational to Kaizen and a manufacturing strategy based "Lean Manufacturing" concepts. 5S is the starting point for improvement activities that ensure a company’s survival.

5-’S’ SEIRI SEITON SEISO SEIKETSU SHITSUKE

SORT SET IN ORDER SHINE STANDARISATION SUSTAIN

SEIRI

(sorting and clearing)

Eliminating unnecessary items Can you find any unnecessary items?  In fact, there are many unnecessary items in any factory. By unnecessary, we mean things which are needed for present production Have a good round in your own workplace

Unnecessary Items Unusable things Unsold products Unused things Superfluous items Defective products Idle/ obsolete/ equipment Excessive assembly parts Excessive work in progress Advance supplies by vendors Causes of inconvenience

The 5 disciplines 1. SORT - Remove all items from the workplace that are not needed for current operations. Leave only the bare essentials 2. SET IN ORDER – Arrange needed items so that they are easy to find, use and put away 3. SHINE – Sweeping, wiping-off equipment, painting and assuring everything stays clean

The 5 disciplines… 4. STANDARDIZE – Method to maintain the first 3 disciplines (sort, set-in-order, shine) 5. SUSTAIN – A top-down support of the ongoing 5S process RED-TAG Strategy is the 1st step in implementing the 5S disciplines.

RED TAG STRATEGY

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Introduction • Companies have realized that a little cost, these efforts can bring big rewards such as substantially reduced inventories, Higher productivity, Improved clerical efficiency, etc. • Attaching a RED Tape can be done by anyone. Hence Companies are readily implementing it. • It is a “Visual Organization” and hence is effective than any other means.

More… It is never too bad, even if the factory is full of RED TAG items. In fact is has to be that way. Red in Japanese means “DIRT”. It is not always easy to identify what ‘WASTE’ is, in a factory. Factory people are used to treating unnecessary things like vouchers, equipment, inventory, etc as personal possessions and get sentimental about them. Hence it is important to identify and determine what really is needed and what is not.

Waste Anything other than the minimum amount of equipment, materials, parts, space, and worker’s time which are “absolutely essential” in adding value to the product.

Eight Deadly Wastes • Over Production

• Transportation

• Product Defects

• Excess Motion

• Inventory

• Waiting

• Excess Process

• Under-utilizing People 1

14

Over Production

Correction

Waiting Transportation

MUDA

Unused Creativity

Over Processing Motion

Inventory

Benefits It is a Simple Method that brings out ills in the working of factory and enables the Management to lower inventories, to easily and efficiently utilize the factory space and to access the material with less effort.

Steps in the RED-TAG Strategy Step-1: Launch the RED-TAG Project Step-2: Identify RED-TAG targets Step-3: Set RED-TAG Criteria Step-4: Make the RED-TAGS Step-5: Attach the RED-TAGS Step-6: Evaluate the RED-TAG Targets

Step-1: Launch the RED-TAG Project Optimally RED Tagging should happen every day, at least for a few minutes. Implement each campaign as a distinct red-tag project with a period of 1-2 months. The person with final responsibility for the project should be a top manager i.e. the company president, the manufacturing chief, or the factory superintendent. JIT consultants should help the factory employees understand how to identify what items are not needed.

Step-2: Identify RED-TAG targets The main targets are inventory, equipment and space in the manufacturing division. Inventory can be classified in to Ware house inventory and In-process inventory. Further, Ware house inventory can be classified into material, parts, products, and so on. We must be careful to target all inventory that lacks a specific location which other wise piles up on the factory shelves. In the clerical division, the targets must be the unnecessary paperwork that piles up in the desks, lockers and the like.

Step-3: Set RED-TAG Criteria The most difficult thing about RED tagging is differentiating what is not required from what is. The most common criterion is the next months production schedule. What is not needed for the next month is hauled away. Another criterion can be based on the next week’s schedule if the factory is more stringent on this. Another possible criterion is based on the last months used items list. Those which have not been used will be Red tagged.

Step-4: Make the RED-TAGS The material used to make them does not matter. All they have to do is to Demand Attention. It should serve well to reflect on details like category, name, quantity, reasons, division, code, date, etc. Should be usable repeatedly.

Step-5: Attach the RED-TAGS It must be made sure that the team that does the tagging understands the criterion for differentiating before being sent to the factory. It is better if they not from the factory which other wise would hinder the tagging due to sentimental resistance. All the tagging has to be done quickly and swiftly before moral comes down. preferably with in 1-2 days.

Step-6: Evaluate the RED-TAG Targets It is very important to evaluate the Red Tag targets. This helps in deciding what to do with the items and how they are ware housed or disposed.( unnecessary items) The goal is to finally get the “unneeded” items list.

Classification and trimming of Usable Items Things constantly in use – Place closer to the machine Things constantly in use weekly – place in work area Seldom used, but still needed Quarterly – Place in Store.

RED-TAG with Computers The present trend of Industry: Wide variety, small-lot production with short delivery, short life cycle Thus huge information is needed by factories in managing each product. Information handling is the key and thus computers are indispensable.

RED-TAG with Computers… When doing RED- tagging, it is important that information about items to be tagged be known. I.e.. Specific accounts of how parts and products are affected by this reduction of inventory is needed. Also needed is about their disposal in each factory division.

RED-TAG with Computers… RED-TAGS indicate a factory’s superfluous items. Thus they can be viewed as data. Thus details like item category, item name, reasons for Red-tagging, company division, etc. can be fed to a computer. This data has to be fed to a computer in the form of unique codes.

What to do with Items identified by Red tag Give 1 week time to other depts. Shift to central Red Tag area if not usable in the coming week, to an area cordoned off specially for the Red tag program. Shift to Value yard if not used for a month Take disposal section, circulate to other units, offer to vendors Obtain write off sanction Repair / Recondition where necessary Take to stores after repair

Forms

RED TAG

CELL/AREA

TAG NUMBER

CATEGORY 1. 2. 3. 4.

RAW MATERIAL WIP FINISHED MAT'L TOOLS

5. 6. 7. 8.

SUPPLIES EQUIPMENT FURNITURE OFFICE MAT'L

9. BOOKS/MAGAZINES 10. OTHER

TAG DATE: ITEM NAME: QUANTITY: REASON TAGGED:

DISPOSITION REQUIRED 1. DISCARD 2. IN CELL STORAGE 3. LONG TERM STORAGE

ACTION TAKEN

4. REDUCE INVENTORY 5. SELL/TRANSFER 6. OTHER__________________

DATE

--------------------------------------------------------------------------------------------------------------CELL/AREA

RED TAG LOCATOR

LOCATION DESCRIPTION

TAG NUMBER

Item Disposition Guidance •Determine the category each tagged item belongs

Directions

•Determine required action, record on tag and Unneeded Items Log •Take action

Category Obsolete

Action •Sell •Hold for depreciation •Give away •Throw away

Defective

•Return to supplier •Throw away •Repair

Scrap

•Remove to proper location

Trash / garbage

•Throw away

Unneeded in this area

•Remove to proper location

Used at least once per day

•Carry with you

•Recycle

•Keep at place of use

Used about once per week

•Store in area

Used less than once per month

•Store where accessible in plant

Seldom used

•Store in distance place •Sell •Give away •Throw away

Use unknown

•Find out use •Remove to proper location

Red Tag Checklist Directions

•Examine all items in each category •Red tag every item that may not be needed •Enter a √ when a category is inspected

Search these spaces Floors Aisles Operation areas Work Stations

Corners, behind/under equipment Stairs Small rooms Offices Loading docks Inside cabinets and drawers

Look for unneeded equipment Machines Small tools Dies Jigs

Bits Conveyance equipment Plumbing, pipes, etc. Electrical equipment Wire, fixtures, junction boxes

Look for unneeded furniture Cabinets Benches and tables Chairs Carts Other

Search these storage places Shelves Racks Closets Sheds

Other storage areas

Search the walls, boards, etc. Items hung on walls Bulletin boards Signboards Other

Look for unneeded material / supplies Raw materials Supplies Parts Work in process

Finished products Shipping materials

Look for other unneeded items Work clothes Helmets Work shoes Trash cans Other

Unneeded Items Log Unneeded Item

#

Date

Reason for Tagging

Notes / Disposition

Workplace Scan To identify workers, processes, and functions of the area. To plan the Workplace Scan. Target Area Name:

Directions:

Define the boundaries of the target area and tape it off.

State the primary purpose of the target area.

Record the functions of the target area.

Plan the Workplace Scan by identifying who is responsible for each step and when completion is expected Scan Step •Draw an area layout •Draw a material spaghetti chart •Complete 5-S & Safety audits •Take photos •Create a workplace scan display

Who

When

Workplace Audit Checklist BEFORE

Sort

Set in Order

Shine

Standardiz e

Sustain

AFTER

Distinguish between what is needed and not needed Unneeded equipment, tools, furniture, etc. are present Unneeded items are on walls, bulletin boards, etc. Items are in aisles, stairways, corners, etc. Unneeded inventory, supplies, parts, or materials are present Safety hazards (water, oil, chemical, machines) exist A place for everything and everything in its place Correct places for items are not obvious Items are not in their correct places Aisles, workstations, equipment locations are not identified Items are not put away immediately after use Height and quantity limits are not obvious Cleaning, and looking for ways to keep it clean and organized Floors, walls, stairs, and surfaces are not free of dirt, oil, and grease Equipment is not kept clean and free of dirt, oil, and grease Cleaning materials are not easily accessible Lines, labels, signs, etc. are not clean and unbroken Other cleaning problems of any kind exist Maintain and monitor the first three S’s Necessary information is not visible All standards are not known and visible Standard Work doesn’t exists for all cleaning and maintenance jobs All quantities and limits are not easily recognizable Items cannot be located in 5 seconds Stick to the rules Area workers have not had 5-S training 5-S is not performed routinely Personal belongings are not stored neatly Standard Work is not available or up to date Daily 5-S audits are not performed

Note: Check all that apply, plan countermeasures.

Set in Order Inspection Sheet •Inspect all items in entire area

Directions

•Move items to proper place •Enter a √ when a category is inspected

Equipment

Materials / supplies / inventory

Machines Small tools Dies Jigs

Raw material Supplies Parts Work in process

Bits Conveyance equipment

Finished product Shipping materials

Cleaning equipment Electrical equipment Fixtures, junction boxes, etc. Computer equipment

Cleaning supplies

Furniture Cabinets Benches and tables Chairs Carts Shelves Racks

Other items Charts, graphs, etc. Books, checklists, etc. Bulletin boards Signboards Pens, pencils, rulers, etc. Work clothes Helmets Work shoes Trash cans Personal items

Shine Inspection Sheet •Search all items in the area for cleaning needs

Directions

•Use this with the Initial Cleaning Plan •Enter a √ when a category is completed

Large Surfaces Ceilings Aisles Work Stations Corners, behind/under equipment Stairs Loading docks Walls Doors Pillars and posts Floors Other

Carts Shelves Racks

Inside equipment / furniture Machines Conveyance equipment Closets Drawers Cabinets Sheds Tool boxes Storage bins

Surfaces of equipment and furniture

Other items

Machines Conveyance equipment Plumbing, pipes, sinks Electrical equipment

Materials and supplies Trash cans Bulletin boards Labels and signs

Fixtures, junction boxes Chairs

Small tools Hoses, cords, tubing, etc. Other

Initial Cleaning Plan Directions

•List tasks and complete the columns below

Target Area Task

Location

Who

When

Materials and Tools Needed

Current Score: Previous Score:

Area Name: 5S

S o r t

#

Che ck Ite m

1

Unneded materials or parts.

2

Unneded machines or other equipment.

3

Unneeded jigs, tools or dies?

5

Have unneeded items been marked? Are display boards well organized?

S e t

6

Are there location indicators?

7

Are there item indicators?

I n

8

Are there quantity indicators?

O r d e r

9

Are walkways and in-process inventory identified?

4

10

Have improvements been made to facilitate jig and tool handling?

11

Trash, water or oil on floors?

Scored By: Date:

Description Does the inventory or in-process inventory include any unneeded materials or parts? Are there any unused machines or other equipment around? Are there any unused jigs, tools, dies or similar items around? Is it obvious which items have been marked as unnecessary? Are notices kept clean and orderly? Are shelves and other storage area marked with indicators and addresses? Do the shelves have labels showing which items go where? Are the minimum and maximum allowable quantities indicated? Are white/yellow lines or other markers used to clearly indicate walkways and storage area? Are jigs and tools arranged more rationally to facilitate picking them up and returning them? Are the floors ket shiny, clean and free of debris?

14

Are machines covered with shaving and oil? Is equipment inspection combined with equipment maintenance? Have specific cleaning task been assigned?

15

Has clealiness become a habit?

S t a b i l i z e d

16

Is there proper ventilation?

17

Is there proper lighting?

18

Are work clothes clean?

S u s t a i n

21 22

Are safety signs posted?

Are all safety signs easily readable?

Are safety guards in place?

Are safety guards being used properly?

23

Time and Structure

Has time been set aside for sustaining?

24

Is there an support?

25

Has 5S become a way of life?

S h i n e

12 13

19 20

Have improvements been made to prevent things from getting Have rules been established for maintaining the first three of 5S's?

Are the machines wiped clean? Do operators clean their machines while checking them? Is there a person responsible for overseeing cleaning operations? Do operators routinely sweep floors and wipe equipment without being told? Is the room/are ventilated well enough to be clear of heavy dust? Is the angle and intensity of lighting adequate for the work being performed? Are workers wearing dirty or oil stained work clothes? Instead of cleaning up the messes, have people found ways toavoid making messes? Are the first three of 5S's being maintained?

Has management and maintenance provided all of the needed support to sustain? Have the workers developed the diciplines required for maintaing the first four of 5S's?

1

Score 2 3

4

RED-TAG episodes: Laughing and learning-1 Twenty years of Inventory: A factory found, up on implementing the Red tagging, a part which has been in store for 20 yrs. Reason: somehow a wrong part name has been assigned. Lesson: JUST AS WE WATCH FOR MISSING PARTS, SO MUST WE WATCH FOR EXCESS INVENTORY

RED-TAG episodes: Laughing and learning-2 Twice Red Tagged: March was designated as Red tag month. March also being the month for audit, they feared it would look horrible to the auditors to see Red Tags stuck all over the place. Thus the Red tags which have been stuck were removed and the project scheduled to April. Lesson: BE SURE THAT EVERYONE COMPLETELY UNDERSTANDS THE RED TAG STRATEGY

Promoting RED-TAG Strategy Establish REDTAG teams Attach Red tags Collect and Transport Unneeded and Useless items Store and Dispose of Unneeded and Useless items Report and Follow up on Disposal Results

5 Keys to a successful Implementation Teach the importance of the 5S’s Be sure that everyone understands what organization means The company President should lead the RED-tag Promotion council Have the Red tags attached by people with no direct relationship to the target items Establish and Use 5S Patrols

5 suggestions about the Implementation Suggestion-1: IF IN DOUBT, RED TAG IT Sugn-2: Finish Red tagging in one or two days Sugn-3: Set a Target Number of Red tags to be used Sugn-4: Apply one Red Tag per item Sugn-5: Tag Excessive Amounts of Needed Items

Items identified by Red tag Create a RED tag zone in each section and display items Give 1 week time to other depts to use Red tag items as needed. Shift to central Red Tag area after 1 week Shift to Value yard after 1 month Take disposal section, circulate to other units, offer to vendors Obtain write off sanction and dispose material Repair / Recondition where necessary Take to stores after repair