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Total Quality
               Management
                 Presentation (Internal-II)



Submitted to:                            Submitted by:
Dr. Piyush Kendurkar                     Jayant Nannore
                                           MBA(BF)
Kaizen
 ( 改善 )
“Continuous Improvement”
Introduction
• ‘Kaizen’ literally means improvement in Japanese.

• From business management point of view it is
  defined as the measures for implementing
  continuous improvement.

• It is a method that strives toward perfection by
  eliminating waste (MUDA) in the work place
  (GEMBA).
Masaaki Imai

• Known as the “Lean Guru” and the father
  of Continuous Improvement (CI)
• Pioneer and leader in spreading
  the Kaizen philosophy all over the world
• Authored the book ’Kaizen: The Key to Japan’s
  Competitive Success’
• Now companies around the world use kaizen for
  greater productivity, speed, quality and profits with
  minimal cost, time and effort, to get results and to
  become recognized industry leaders.
The Origin of Kaizen
• The foundation of Kaizen was laid in Japan after the
  Second World War, when the country was attempting
  to rebuild infrastructure and rethink many systems.
• Several American experts on workplace improvement
  including W. Edwards Deming and Joseph Juran
  came to Japan to lecture and teach.
• Using information from these individuals regarding
  the TWI (Training Within Industry) programs , the
  concept of Kaizen began to be formed and it took off
  in the 1950s.
KAIZEN-The Concept
• Process Oriented Approach
   – Leads to Improved Results
      • Focus on the process improvement without loosing
        sight of the expected results.
• People Oriented Approach
   – Focus on ….
      • Discipline
      • Time Management
      • Skill Development
      • Participation and Involvement
      • Morale
      • Communication
Kaizen Umbrella




             Masaki Imai
Kaizen : Key principles
• The first is a heavy reliance on teamwork, in which
  everyone's opinion is valued and considered.

• Workers also have strong personal discipline, and morale in
  factories must improve under kaizen.

• Workers should also be confident about offering
  suggestions for improvement, even when a system appears to
  be functioning adequately

• Kaizen recognizes that there is always room for
  improvement

• Finally, the system uses quality circles, worker groups who
  meet and work together to solve problems and come up with
  innovative changes.
KAIZEN and INNOVATION
                                        KAIZEN                  INNOVATION
1. Effect                   Long-term and business as     Short term and dramtic
                            usual
2. Pace                     Small Steps                   Big Steps

3. Time frame               Continuous and Incremental    Intermittent and non-
                                                          incremental
4. Change                   Gradual and constant          Abrupt and volatile

5. Involvement              Every-one                     Selected champions

6. Approach                 Collective group efforts,     Individual ideas and efforts
                            systems approach
7. Mode                     Maintenance and Improvement   Scrap and Rebuild

8. Effort Orientation       People                        Technology

9. Practical Requirements   Little investment but great   Large investment but little effort
                            efforts to maintain           to maintain
10. Advantage               Works well in slow growth     Better suited in fast growth
                            economy                       economy
INNOVATION plus KAIZEN

                                         rd
                                  St anda
                            New               KAIZEN




                            INNOVATION


            dard
  Ne w Stan
                   KAIZEN


INNOVATION
Another comparison of Innovation and
KAIZEN
                Innovation                           KAIZEN

   Creativity                            Adaptability
   Individualism                         Teamwork (systems approach)
   Specialist-oriented                   Generalist-oriented
   Attention to great leaps              Attention to details
   Technology-oriented                   people-oriented
   Information: closed, proprietary      Information: open, shared
   Functional (specialist) orientation   Cross-functional orientation
   Seek new technology                   Build on existing technology
   Line + staff                          Cross-functional organization
   Limited feedback                      Comprehensive feedback
The Approach
•    The Kaizen Approach is composed of 3 segments:
    A. Pre-event Prep: Identify and plan narrowly
        scoped events
       • Reducing defects in order entry
       • Implementing marketing metrics
       • Performing customer surveys to get VoC
    A. Kaizen Event: measure, analyze, implement, and
        control improvements in one week
    B. Follow-up Actions: remaining action items must
        be completed within four weeks after event
Kaizen Event
• A few days, highly structured and coached intense
attack on waste in a process or work area by a
small group


                  When to use Kaizen
• Waste sources have been identified (Low-hanging
fruits)
• The scope of a problem is clearly defined
• Results are immediate and risk is minimal
Kaizen Training                                  15




 Steps on Team Development

   Forming
              This is the development of a multi-functional
              team with a variation of backgrounds and
              knowledge
 Storming    Open & honest discussion, also brainstorming

   Forming    Stage where the group agrees how to
              operate as a team
Performing    Agreement on solutions & taking action
Adjourning    Closing on the continues improvement process
              after 30 days
// YIS//062709//
Management Oriented                Group Oriented KAIZEN           Individual Oriented
                          KAIZEN                                                             KAIZEN
Tools            Seven Statistical Tools             Seven Statistical Tools         Common sense
                 New Seven Tools                     New Seven Tools                 Seven Statistical Tools
                 Professional skills
Involves         Managers & Professional             QC- circles group members       Everybody

Target           Focus on system & Procedures        Within the same workshop        Within one’s own work
                                                                                     area
Cycle (Period)   Lasts for the duration of project   Requires 4-5 months to          Anytime
                                                     complete
Achievements     As many as management chooses       2-3 per years                   Many

Supporting       Line & Staff project team           Small-group activities          Suggestion system
system                                               QC circles
                                                     Suggestion system
Implementation   Sometimes require small             Mostly inexpensive              Inexpensive
cost             investment to implement the
                 decision
Result           New system and facility             Improved work procedures        On-the-spot improvement
                 improvement                         Revision of standard
Booster          Improvement in Managerial           Morale improvement              Morale improvement
                 performance                         Participation                   KAIZEN awareness
                                                     Learning experience             Self-development
Direction        Gradual & visible improvement       Gradual & visible improvement   Gradual & visible
                 Marked upgrading of current                                         improvement
                 status                                                                        // YIS//062709//
Who                  What               Where               When                Why                  How

 Who does it?         What to do?        Where to do it?    When to do it?    Why does he do it?     How to do it?


                                           Where is it
Who is doing it?   What is being done?                     When is it done?       Why do it?         How to do it?
                                            done?

Who should be                      Where should              When should                           How should it be
              What should be done?                                             Why do it there?
  doing it?                         It be done?               it be done?                              done?


                                                                                                Can this method be
Who else can do     What else can be     Where else can    What other time
                                                                                Why do it then?   used in other
      it?               done?             it be done?      can it be done?
                                                                                                      areas?


                                          Where else
Who else should What else should be                         What other time                       Is there any other
                                          should it be                        Why do it that way?
    do it?            done?                                should it be done?                        way to do it?
                                            done?


                                          Where are 3-                        Are there any 3-       Are there any
Who is doing 3- What 3-Mus are being                       Are there any time
                                           Mus being                          Mus in the way of      3-MUs in the
   Mus?                done?                                    3-Mus ?
                                            done?                                thinking?             method?

                                                                                                   // YIS//062709//
Team Rules
•   Be open to change
•   Maintain a positive attitude
•   Never leave disagreements unspoken
•   We’re not interested in assigning blame – only in creating
    solutions!
•   Practice mutual respect
•   Treat others as you want to treated
•   One person, one vote – position doesn’t matter
•   The only stupid questions are the ones not asked
•   Have fun!
•   Understand the process, and…JUST DO IT!
Kaizen in Toyota
The Toyota Production System is known for it’s use of kaizen.

•   After World War II, Taiichi Ohno was charged with setting up machine
    shops for Toyota. He studied the Ford production systems. He analyzed the
    various productive measures and discrepancies in the system.

•   Based on the analysis, he outlined several production strategies for Toyota.
    These production strategies later became benchmarks for production
    practices across the world.

•   Toyota thus became one of the first companies in the world to adopt
    practices such as Kaizen. Analysts however feel that Kaizen kept TPS, JIT,
    Kanban and other practices working smoothly as an interlinked strategic
    operational plan.
Toyota’s use of Kaizen to solve labor crisis
•    In the early 1990s, Toyota was facing acute labor shortage

•    Toyota’s initial management focus was on increasing production efficiency
     through higher production levels with less number of workers. This resulted
     in increased stress and worker exodus

•    The global upsurge in car demand during 1987-1991 led to drastic increase in
     demand for labors

•    Toyota realized that it would have to rely on Kaizen for modifying its existing
     assembly lines to attract workers.

•    The company decided to change its working conditions to accommodate
     workers of more diverse nature

•    The management decided to allow plants to set their own annual production
     efficiency targets. Production efficiency measurement was based on worker’s
     production time rather than on best production time
Why Toyota stands Out than Big Three




Those company can execute better than competitors
at the micro level (process improvement) will be the
winner.
Kaizen to Toyota is the elimination of three
basic things like:

 Muri (Overburden on employees)
 Mura(Unevenness in production)
 Muda (Waste)
PIT FALLS IN KAIZEN
• Resistance to change

• Lack of proper procedure to
  implement

• Too much suggestion may
  lead to confusion and time
  wastage


                                 24
Key Benefits of Kaizen
•   Widely applicable – Can be used in both
    manufacturing    and   non-manufacturing
    environments

•   Highly effective & results oriented - Kaizen
    events will generate quick results, Measurable
    results, Establish the baseline, and measure the
    change

•   Higher operational efficiency –
     – Reduces wastage, like inventory waste,
        time waste, workers motion
     – Improves space utilization and product
        quality
•   A Learning Experience – Every member of a
    Kaizen Team will walk away from the event
    learning something new.
     – Encourages big picture thinking
     – Results in higher employee morale and job
        satisfaction, and lower turn-over.
Kaizen can be applied to real life
               also…
Consider the case of a student’s bag. The items can be classified
  into
• Notes and assignments
• Stationary (pens, notepads etc.)
• Other items like calculators, pen drive etc.

Regular checking of the stationary items ensures that the
  notemaking is not affected due to lack of stationary.
Keeping notes and assignments organized enables faster access
  to them.
Overall checking of bag at regular intervals ensures that no
  necessary items are missing.
Conclusion
• “Kaizen” or “continuous improvement” should be a
  part of our everyday life.

• The concept is simple but if properly applied can
  lead to significant efficiency improvements for
  organizations.

• Kaizen and its associated concepts like PDCA,
  Kanban and Quality Circles have been critical to the
  success of large organizations like Toyota, Canon
  and Nippon.
When there is no
             problem , there is no
                 potential for
                improvements




KAIZEN starts with a problem,
more precisely the
recognition that a
problem exists
KAIZEN
 PHILOSOPHY

“Be it our working life, our
social life, or our home life,
 deserves to be constantly
          improved”




                                 // YIS//062709//
KAIZEN HELPS YOU TO…


         SEE THE WASTE.
     TURN PROBLEMS INTO PROFIT.
CONSTANTLY CHANGE FOR THE BETTER.

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kaizen (mba bf)

  • 1. Total Quality Management Presentation (Internal-II) Submitted to: Submitted by: Dr. Piyush Kendurkar Jayant Nannore MBA(BF)
  • 2.
  • 3. Kaizen ( 改善 ) “Continuous Improvement”
  • 4. Introduction • ‘Kaizen’ literally means improvement in Japanese. • From business management point of view it is defined as the measures for implementing continuous improvement. • It is a method that strives toward perfection by eliminating waste (MUDA) in the work place (GEMBA).
  • 5. Masaaki Imai • Known as the “Lean Guru” and the father of Continuous Improvement (CI) • Pioneer and leader in spreading the Kaizen philosophy all over the world • Authored the book ’Kaizen: The Key to Japan’s Competitive Success’ • Now companies around the world use kaizen for greater productivity, speed, quality and profits with minimal cost, time and effort, to get results and to become recognized industry leaders.
  • 6. The Origin of Kaizen • The foundation of Kaizen was laid in Japan after the Second World War, when the country was attempting to rebuild infrastructure and rethink many systems. • Several American experts on workplace improvement including W. Edwards Deming and Joseph Juran came to Japan to lecture and teach. • Using information from these individuals regarding the TWI (Training Within Industry) programs , the concept of Kaizen began to be formed and it took off in the 1950s.
  • 7. KAIZEN-The Concept • Process Oriented Approach – Leads to Improved Results • Focus on the process improvement without loosing sight of the expected results. • People Oriented Approach – Focus on …. • Discipline • Time Management • Skill Development • Participation and Involvement • Morale • Communication
  • 8. Kaizen Umbrella Masaki Imai
  • 9. Kaizen : Key principles • The first is a heavy reliance on teamwork, in which everyone's opinion is valued and considered. • Workers also have strong personal discipline, and morale in factories must improve under kaizen. • Workers should also be confident about offering suggestions for improvement, even when a system appears to be functioning adequately • Kaizen recognizes that there is always room for improvement • Finally, the system uses quality circles, worker groups who meet and work together to solve problems and come up with innovative changes.
  • 10. KAIZEN and INNOVATION KAIZEN INNOVATION 1. Effect Long-term and business as Short term and dramtic usual 2. Pace Small Steps Big Steps 3. Time frame Continuous and Incremental Intermittent and non- incremental 4. Change Gradual and constant Abrupt and volatile 5. Involvement Every-one Selected champions 6. Approach Collective group efforts, Individual ideas and efforts systems approach 7. Mode Maintenance and Improvement Scrap and Rebuild 8. Effort Orientation People Technology 9. Practical Requirements Little investment but great Large investment but little effort efforts to maintain to maintain 10. Advantage Works well in slow growth Better suited in fast growth economy economy
  • 11. INNOVATION plus KAIZEN rd St anda New KAIZEN INNOVATION dard Ne w Stan KAIZEN INNOVATION
  • 12. Another comparison of Innovation and KAIZEN Innovation KAIZEN Creativity Adaptability Individualism Teamwork (systems approach) Specialist-oriented Generalist-oriented Attention to great leaps Attention to details Technology-oriented people-oriented Information: closed, proprietary Information: open, shared Functional (specialist) orientation Cross-functional orientation Seek new technology Build on existing technology Line + staff Cross-functional organization Limited feedback Comprehensive feedback
  • 13. The Approach • The Kaizen Approach is composed of 3 segments: A. Pre-event Prep: Identify and plan narrowly scoped events • Reducing defects in order entry • Implementing marketing metrics • Performing customer surveys to get VoC A. Kaizen Event: measure, analyze, implement, and control improvements in one week B. Follow-up Actions: remaining action items must be completed within four weeks after event
  • 14. Kaizen Event • A few days, highly structured and coached intense attack on waste in a process or work area by a small group When to use Kaizen • Waste sources have been identified (Low-hanging fruits) • The scope of a problem is clearly defined • Results are immediate and risk is minimal
  • 15. Kaizen Training 15 Steps on Team Development Forming This is the development of a multi-functional team with a variation of backgrounds and knowledge Storming Open & honest discussion, also brainstorming Forming Stage where the group agrees how to operate as a team Performing Agreement on solutions & taking action Adjourning Closing on the continues improvement process after 30 days
  • 17. Management Oriented Group Oriented KAIZEN Individual Oriented KAIZEN KAIZEN Tools Seven Statistical Tools Seven Statistical Tools Common sense New Seven Tools New Seven Tools Seven Statistical Tools Professional skills Involves Managers & Professional QC- circles group members Everybody Target Focus on system & Procedures Within the same workshop Within one’s own work area Cycle (Period) Lasts for the duration of project Requires 4-5 months to Anytime complete Achievements As many as management chooses 2-3 per years Many Supporting Line & Staff project team Small-group activities Suggestion system system QC circles Suggestion system Implementation Sometimes require small Mostly inexpensive Inexpensive cost investment to implement the decision Result New system and facility Improved work procedures On-the-spot improvement improvement Revision of standard Booster Improvement in Managerial Morale improvement Morale improvement performance Participation KAIZEN awareness Learning experience Self-development Direction Gradual & visible improvement Gradual & visible improvement Gradual & visible Marked upgrading of current improvement status // YIS//062709//
  • 18. Who What Where When Why How Who does it? What to do? Where to do it? When to do it? Why does he do it? How to do it? Where is it Who is doing it? What is being done? When is it done? Why do it? How to do it? done? Who should be Where should When should How should it be What should be done? Why do it there? doing it? It be done? it be done? done? Can this method be Who else can do What else can be Where else can What other time Why do it then? used in other it? done? it be done? can it be done? areas? Where else Who else should What else should be What other time Is there any other should it be Why do it that way? do it? done? should it be done? way to do it? done? Where are 3- Are there any 3- Are there any Who is doing 3- What 3-Mus are being Are there any time Mus being Mus in the way of 3-MUs in the Mus? done? 3-Mus ? done? thinking? method? // YIS//062709//
  • 19. Team Rules • Be open to change • Maintain a positive attitude • Never leave disagreements unspoken • We’re not interested in assigning blame – only in creating solutions! • Practice mutual respect • Treat others as you want to treated • One person, one vote – position doesn’t matter • The only stupid questions are the ones not asked • Have fun! • Understand the process, and…JUST DO IT!
  • 20. Kaizen in Toyota The Toyota Production System is known for it’s use of kaizen. • After World War II, Taiichi Ohno was charged with setting up machine shops for Toyota. He studied the Ford production systems. He analyzed the various productive measures and discrepancies in the system. • Based on the analysis, he outlined several production strategies for Toyota. These production strategies later became benchmarks for production practices across the world. • Toyota thus became one of the first companies in the world to adopt practices such as Kaizen. Analysts however feel that Kaizen kept TPS, JIT, Kanban and other practices working smoothly as an interlinked strategic operational plan.
  • 21. Toyota’s use of Kaizen to solve labor crisis • In the early 1990s, Toyota was facing acute labor shortage • Toyota’s initial management focus was on increasing production efficiency through higher production levels with less number of workers. This resulted in increased stress and worker exodus • The global upsurge in car demand during 1987-1991 led to drastic increase in demand for labors • Toyota realized that it would have to rely on Kaizen for modifying its existing assembly lines to attract workers. • The company decided to change its working conditions to accommodate workers of more diverse nature • The management decided to allow plants to set their own annual production efficiency targets. Production efficiency measurement was based on worker’s production time rather than on best production time
  • 22. Why Toyota stands Out than Big Three Those company can execute better than competitors at the micro level (process improvement) will be the winner.
  • 23. Kaizen to Toyota is the elimination of three basic things like: Muri (Overburden on employees) Mura(Unevenness in production) Muda (Waste)
  • 24. PIT FALLS IN KAIZEN • Resistance to change • Lack of proper procedure to implement • Too much suggestion may lead to confusion and time wastage 24
  • 25. Key Benefits of Kaizen • Widely applicable – Can be used in both manufacturing and non-manufacturing environments • Highly effective & results oriented - Kaizen events will generate quick results, Measurable results, Establish the baseline, and measure the change • Higher operational efficiency – – Reduces wastage, like inventory waste, time waste, workers motion – Improves space utilization and product quality • A Learning Experience – Every member of a Kaizen Team will walk away from the event learning something new. – Encourages big picture thinking – Results in higher employee morale and job satisfaction, and lower turn-over.
  • 26. Kaizen can be applied to real life also… Consider the case of a student’s bag. The items can be classified into • Notes and assignments • Stationary (pens, notepads etc.) • Other items like calculators, pen drive etc. Regular checking of the stationary items ensures that the notemaking is not affected due to lack of stationary. Keeping notes and assignments organized enables faster access to them. Overall checking of bag at regular intervals ensures that no necessary items are missing.
  • 27. Conclusion • “Kaizen” or “continuous improvement” should be a part of our everyday life. • The concept is simple but if properly applied can lead to significant efficiency improvements for organizations. • Kaizen and its associated concepts like PDCA, Kanban and Quality Circles have been critical to the success of large organizations like Toyota, Canon and Nippon.
  • 28. When there is no problem , there is no potential for improvements KAIZEN starts with a problem, more precisely the recognition that a problem exists
  • 29. KAIZEN PHILOSOPHY “Be it our working life, our social life, or our home life, deserves to be constantly improved” // YIS//062709//
  • 30. KAIZEN HELPS YOU TO… SEE THE WASTE. TURN PROBLEMS INTO PROFIT. CONSTANTLY CHANGE FOR THE BETTER.

Hinweis der Redaktion

  1. Kaizen KAI ZEN“Kai” in Japanese means ‘Change’ and ‘Zen’ means good. The literarymeaning of Kaizen is “change for good” Kaizen KaizenKaizen is the Japanese philosophy of continuous improvementby all the employees in an organization so that they perform theirtasks a little better each day.It is a never ending journey centered on the concept of startingnew each day, with the principle that the methods can always beimproved. Kaizen Kaizen¢ The road to excellence is not the major break-through , but small continuous improvements which result in real cost savings, higher quality or better productivity.¢ The latest developments in Japan advocate the idea of taking small incremental Risks along with small continuous improvements to win .
  2. One hot day, a thirsty crow flew all over the fields looking for water. For a long time, he could not find any. He felt very weak, almost lost all hope. Suddenly, he saw a water jug below the tree. He flew straight down to see if there was any water inside. Yes, he could see some water inside the jug! The crow tried to push his head into the jug. Sadly, he found that the neck of the jug was too narrow. Then he tried to push the jug to tilt for the water to flow out but the jug was too heavy. The crow thought hard for a while. Then looking around it, he saw some pebbles. he suddenly had a good idea. he started picking up the pebbles one by one, dropping each into the jug. As more and more pebbles filled the jug, the water level kept rising. Soon it was high enough for the crow to drink. His plan had worked! Moral: Think and work hard, you may find solution to any problem.
  3. Japanese for "improvement", or "change for the better"
  4. What is “Kaizen”? KAIZEN means improvement: Kaizen is small incremental changes made for improving productivity and minimizing waste. Improvements without spending much money, involving everyone from managers to employees, and using much common sense. Continuous improvement is nothing but continuous elimination of wastes. Measures for implementing continuous improvement. On-Going: Continuous improvement is nothing but continuous elimination of wastes Kaizen is primarily a reactive process where you "check" to see if anything is wrong, then go about fixing it. It is a daily activity and always under the control of a supervisor. Improves productivity by daily monitoring and elimination of wastes. Waste in the workplace is defined as activities that add cost but do not add value.
  5. MASAAKI IMAI AND TOTAL QUALITY MANAGEMENT : Masaaki imai the chairman of the Cambridge corporation international management firm based in Tokyo. Masaaki imai together the management philosophies theories of single concept “kaizen”. Kaizen is a Japan's economic name formal system to promote process continuous improve quality.
  6. Understanding kaizen: Kaizen begins with the notion that an organization it is long time quality and success only when every member in the operating system the firm actively pursues opportunities to identify and implement every day. Kaizen sets no conditions for the magnitudes of quality improvement. The quality improvement perspective of kaizen saying “Every day and every way we are getting better and better”.
  7. “ kaizen” refines its improvement for three guiding principles : Process view of the system: The process analysis could affect a process for making product or a process for designing a product among other processes. Stress comes from people : Kaizen program relies heavily on depends on intelligent the firms process to continuous improvement .success of the quality. Discipline Employee participation Skill development Effective communication Constant sense of urgency: A successful kaizen program depends on unceasing awareness of the need for change.everyone must feel that the improve the much more quality in good sufficient and the over confidence weaken kaizen
  8. Toyota production system is known for kaizen, where all line personnel are expected to stop their moving production line in case of any abnormality and, along with their supervisor, suggest an improvement to resolve the abnormality which may initiate a kaizen.
  9. Kaizen – A mixed bag Why Kaizen works well for some… It has been suggested that Kaizen works particularly well in Japan because it has a collective culture, and Kaizen relies on collective values. The focus is more on improvement and refinement of existing methods, rather newer innovations. And not so for others… People in more individualistic cultures (like in Western corporations) may struggle with some of the basic principles of Kaizen. Kaizen idea of improvement is contrary to the beliefs of some Westerners, who place a high value on the achievement and maintenance of perfection.
  10. Kaizen Strategy Benefits * Reduces waste or non value add activities * Reduces cycle times * Improves quality * Improves productivity * Reduces cost of operations * Improves throughput * Improves customer satisfaction * Improves profits