KAIZEN

The secret of JAPANESE Success

K.Mariappan
E.Mail : mariappank@yahoo.co.in

Definition of KAIZEN Definition of KAIZEN

Kaizen is defined as a philosophy of continuing improvement that involves all employees - from executives to laborer.

'Kai', which means continuous and 'zen' which means 'Kai', which means continuous and 'zen' which means improvement. improvement. Some translate 'Kai' to mean change and 'zen' to mean Some translate 'Kai' to mean change and 'zen' to mean good, or for the better. good, or for the better.

Understanding of KAIZEN Understanding of KAIZEN

Focused effort to improve system It is a People & Process oriented approach Team Based Vs Individual It will yield results in Short Period Action, doing, hands on. Gemba at the source, on the floor, not on the office.

Why we need Kaizen? Why we need Kaizen?

In any business, management creates standards that employees must follow to perform the job. In Today, maintaining and improving standards is very essential to sustain the business & the main goal of management. If you improve standards, it means you then establish higher standards which you observe, maintain and then later try to improve upon. This is an unending process. If you do not maintain the standard, it is bound to slip back, giving it the two steps forward, one step back effect. Lasting improvement is achieved only when people work to higher standards. For this reason, Kaizen is required.

Why we need Kaizen? Why we need Kaizen?

To solve problems To eliminate waste (Muda) Transportation, Inventory, Motion, Waiting, Over-production, Over-processing, Defects Create ownership and empowerment Support lean thinking.

Problem Solving :: Problem Solving

Where there are no problems, there is no potential for improvement. When you recognize that a problem exists, Kaizen is already working. The real issue is that the people who create the problem are often not directly inconvenienced by it, and thus tend to not be sensitive to the problem. In day-to-day management situations, the first instinct is to hide or ignore the problem rather than to correct it. This happens because a problem is ....well, a problem! By nature, nobody wants to be accused of having created a problem. However if you think positive, you can turn each problem into a valuable opportunity for improvement. So, according to Kaizen philosophy, when you identify a problem, you must solve that problem. Once you solve a problem, you, in essence, surpass a previously set standard. This results in the need to set a new, higher standard and is the basis for the Kaizen concept.

To eliminate waste :: To eliminate waste

All we are doing is looking at the time line; from the moment the customer gives us an order, All we are doing is looking at the time line; from the moment the customer gives us an order, to the point when we collect cash. We are reducing that time line by removing the non-valueto the point when we collect cash. We are reducing that time line by removing the non-valueadded wastes. added wastes. ----Taiichi Ohno ----Taiichi Ohno

Order

Cash

(Reduce by removing non-value-added wastes)

Simple, very clear focus

Seven (Mudas) wastes (( TIMWOOD) Seven (Mudas) wastes TIMWOOD)

Taiichi Ohnos 7 Wastes

Over - Production
TEN PLEASE!
CALL IT TWENTY? 22 TO BE ON THE SAFE SIDE!

Motion

Over -Processing
How do you spell that?

Defects / Rejects / Re-work

Waiting
Inventory
$
METSYS GNITAREPO KADOK

Transportation

$$ $ $
$

$
$

M ETSYS GNITAR EPO KADOK

METS YS GNITARE PO KADO K

METSYS GN IT AREPO KADO K

M ET SYS GN IT AR EPO KADOK

M ETSYS GNITAR EPO KADOK

M ETSY S GNITAR EPO KADOK

Create ownership and Empowerment :: Create ownership and Empowerment

It is important for management to understand the workers role in Kaizen, and to support it completely. One of the main vehicles for involving all employees in Kaizen is through the use of the suggestion system. The suggestion system does not always provide immediate economic payback, but is looked at as more of a morale booster. Morale can be improved through Kaizen activities because it gets everyone involved in solving problems. Management is willing to give recognition to employees for making efforts to improve, and they try to make this recognition visible. Often, the number of suggestions is posted individually on the wall of the workplace in order to encourage competition among workers and among groups.

Kaizen Preparation :: Kaizen Preparation

1) Define the opportunity Cost, Quality, Waste, Safety - Specific

2)

Form & train the team They must be dedicated resources commitment They must be trained in specifics regarding the task at hand. (ie: process knowledge, lean tools)

3)

Set goals / collect baseline data Is the problem well understood what does success look like?

4)

Leader & team responsibilities

Pre Kaizen steps are performed so that the Kaizen is as effective Pre Kaizen steps are performed so that the Kaizen is as effective and waste free as possible. and waste free as possible.

How to form a Kaizen Team How to form a Kaizen Team

Team composition & training is critical to the success of the team Composition should reflect the diversity of the work center A team generally consists of 6-10 people Each member will be chosen to perform a specific role everybody works

Kaizen -- Cycle Kaizen Cycle

Start Here
Document Reality Do It Again

Celebrate

Identify Waste

Make this the Standard

Kaizen
Plan Countermeasures Measure Results

Reality Check Make Changes

Verify Change

Six basic Rules of Kaizen Six basic Rules of Kaizen

1. Respect others Particularly the local operators, you are in their living room 2. Document reality If you make changes based on data, the data should be based Do your share Everyone has to contribute Try something new Be open minded - try it instead of racking your brain for why it wont work (try-storming) Ask why (the 5 whys) Gain complete understanding, assume nothing Be safe / Think safe Both in your actions and in what you implement

on reality

3.

4.

reasons

5.

6.

Dos and Dont s Dos and Dont s

Do be open minded to all approaches Do try as many ideas as possible. A minimum of three. Do as many observations of reality as possible (10). Do include one person who is convinced it cant be done. Do make sure management is committed to resolving the issue and supporting the team. . Dont utilize to implement your solution Dont just sit around and brainstorm or justify the current way things are done. Dont assume you know the problem Dont put more than one of these people on the team. Dont hold a Kaizen to resolve an issue that is not driving a business goal.

Kaizen -- Review Kaizen Review

Before the Kaizen Event 50% Mainly on Kaizen theme, Team Leader & Team selection During the Kaizen Event 50% Mainly on Targeted training, Direct observation, Bias of action & supporting resources.

Management support of Kaizen Management support of Kaizen

Kaizen requires everyones support. The driving force for keeping Kaizen going is the knowledge that with effort and time, improvements will be made. Management has to make a conscious and continuous effort to support Kaizen, or it will not last. If management can make the commitment of time and effort, the Kaizen strategy will pay off. People need to be encouraged to admit problems and try to come up with solutions Kaizen's introduction and direction must start with management, but the suggestions for Kaizen should come from the bottom, A system should be developed that rewards the efforts of workers and managers, rather than simply giving recognition based on an end result. A process-oriented manager should be people-oriented and have a reward system based on the following factors: Discipline Participation and involvement Time management Morale Skill development Communication

Kaizen Vs Innovation Kaizen Vs Innovation

KAIZEN : People & Process oriented approach Gradualist approach Subtle & slow process Continuous process Obtaining easy approval from the management Continuous effort, commitment & common sense is reqd to complete the project.
KAIZEN

INNOVATION : Technology & money oriented approach Great leap - forward approach Major technological breakthroughs & modern management concepts One shot deal process Obtaining management approval is very difficult. Highly sophisticated technology as well as huge investment is required.
INNOVATION