Kaizen

© Operational Excellence Consulting. All rights reserved.
Kaizen
Plan
DoCheck
Act

4© Operational Excellence Consulting. All rights reserved.
Outline
1. Introduction to Kaizen
2. Kaizen & Waste
3. Key Concepts of Kaizen
4. Kaizen Management
5. Kaizen Practices
6. Kaizen Implementation
7. Problem Solving Tools & Technique
8. Developing “Kaizen Eyes”
9. Role of Management
10.Critical Success Factors
This document is a partial preview. Full document download can be found on Flevy:
http://flevy.com/browse/document/kaizen-153

What is Kaizen?
• Kaizen means improvement. Improvements
without spending much money, involving
everyone from managers to employees, and
using much common sense.
• The aspect of Kaizen is that it is on-going and
never-ending improvement process.

Kaizen & Lean
Stability
Heijunka Standardized Work Kaizen
Just-In-Time
• Continuous flow
• Takt time
• Pull system
• Flexible workforce
Jidoka
• Separate man &
machine work
• Abnormality
Identification
• Poka yoke
• Visual Control
Goals:
highest quality,
lowest cost, shortest lead times
Involvement

Kaizen Philosophy
Implement good housekeeping and workplace organization.
Identify and eliminate all activities that are waste.
Implement standardization.
Current
State
Future
State
Solve
Problems
Expose
Problems “True North”
Value Added Time = Lead Time
Full of Waste,
Variation, and
Constraints

2. Waste Elimination
• Any activity that does not add value is waste.
• People in Gemba either add value or do not add
value. This is also true for other resources, such
as machines and materials.
• Waste elimination can be the most cost-effective
way of improving productivity and reducing
operating costs.This document is a partial preview. Full document download can be found on Flevy:

Session 2
Kaizen & Waste

What is Waste?
Typically >90% of Total Lead Time is Non-Value Added!!!
Value
Add
Non Value
Add:
Incidental
Waste
Non Value
Add:
Pure Waste

Non-Value-Added Activities
Examples:
• Waiting / sorting • Recording
• Moving • Obtaining approvals
• Kitting / Staging • Testing
• Counting • Reviewing
• Inspecting • Copying
• Checking • Filing
• Reporting • Rework

Eight Types of Waste
Over-production
Producing more than what
the customer needs
Inventory
Building and storing extra
services/products the
customer has not ordered
Transportation
Moving product from
one place to another
Rework
Reprocessing, or
correcting work
Over-processing
Adding excess value
when the customer
does not require it
Motion
Extra physical/mental
motion that doesn’t add
value
Intellect
Not using employees full
intellectual contribution
Waiting
Employees waiting for
another process or a
machine/tool
WasteWaste

Kaizen & Management
• Has two major functions: Maintenance and
Improvement.
• Maintenance: current technological, managerial
and operating standards.
• Improvements: activities directed toward
elevating current standards.

Modern Perception of Kaizen & Job
Functions
Top Management
Middle Management
Supervisors
Workers
Innovation
Maintenance
Kaizen

Following the PDCA / SDCA Cycles
• ACT refers to performing and standardizing
prevent recurrence of the original problem or to
set goals for the new improvement.
• The PDCA cycle revolves continuously.
• Management must initiate PDCA by establishing
continuously challenging goals.
• Before working on PDCA, any current process
must be stabilized.

SDCA / PDCA Cycle
Kaizen
Maintenance
S
DC
A
P
DC
A
Kaizen
Maintenance
S
DC
A
P
DC
A

The Next Process Is The Customer
• The next process should always be regarded
as the customer.
• Refers to two types of customers: internal and
external.
• When everyone in the organization practices
this the external customer will receive a high
quality product or service as a result.

Speak with Data
• Kaizen is a problem solving process.
• The problem must be understood and
recognized.
• Solving a problem without data is not a very
scientific or objective approach.
• Collecting, verifying and analyzing data for
improvement is vital.This document is a partial preview. Full document download can be found on Flevy:

Policy Deployment (Hoshin Kanri)
• A planning tool that helps us identify the key
focus points and strategies we will use to steer
us towards our vision.
• Enables everyone to ‘see’
where we’re going and
our plans to get there
• Build plan and strategies
as a team
• Shared responsibility for
getting results
Vision
Key Result Areas
Key Result Measures
Key Strategies

Suggestion System
• One of the cornerstones of Small
Group Activities
• Suggestions are job-oriented and
implemented by the employee
Process improvement
Equipment reliability
Safety, health and environment
• A key measure of morale –
number of suggestions per
employee

Kaizen – The Practice
Management-
Oriented Kaizen
Group-Oriented
Kaizen
Individual-
Oriented Kaizen
Achievements As many as
management chooses
2-3 years Many
Supporting
system
Line and staff project
team
Small-group activities
QC Circles
Suggestion system
Suggestion system
Implementation
cost
Sometimes requires
small investment to
implement the
decision
Mostly inexpensive Inexpensive
Result New system & facility
improvement
Improved work
procedure
Revision of standard
On-the-spot
improvement

Gemba House
ManMan
MeasurementsMeasurements
MethodsMethods
MachinesMachines
MaterialsMaterials
Operational + Materials StandardsOperational + Materials Standards
NVA = Muda + Mura + MuriNVA = Muda + Mura + Muri
5S = Housekeeping Discipline5S = Housekeeping Discipline
QualityQuality
DeliveryDelivery
CostCost
S
DC
A
P
DC
A
InputInput ProcessProcess OutputOutput

Group / Individual Kaizen Process
1. Employee identifies a problem, waste/loss, or an
opportunity for improvement and writes it down.
2. Employee develops an improvement idea and
discusses it with his or her supervisor.
3. Supervisor reviews the idea within 24 hours and
encourages immediate action.
4. Employee implements the idea. If a larger
improvement idea is approved, the employee should
take leadership to implement the idea.
5. Idea is written up on a simple form in less than three
minutes.
6. Supervisor posts the form to share with and stimulate
others and recognizes the accomplishment.

10 Rules of Kaizen 2
6. Do not spend money for Kaizen.
7. Wisdom is brought out when faced with
hardship.
8. Ask “Why?” five times and seek the root
cause.
9. Seek the wisdom of 10 people rather than the
knowledge of one.
10.Remember the opportunities for Kaizen are
infinite.
Source: Gemba Kaizen by Masaaki Imai

Kaizen Event – How is it done?
• Pre-event preparation
• Kaizen event
• Event follow-up

The PDCA Approach to Problem
Solving
• A systematic approach
to problem solving
• Provides the framework
for a team to carry out
improvement
Plan
DoCheck
Act

Step 2: Plan the Schedule
• Assess the complexity of the project and plan
the schedule using a Gantt Chart
Break down the schedule to include all the 8 steps of
problem solving, and assign team members’
responsibilities (e.g. who does what and by when)
Estimate the time required for each of the step
• Discuss with the process owner to determine
urgency of the project and deadline
• Balance the need to carry out day-to-day work
and executing the problem solving project

Why Get to the Root?
“When we fail to grasp
the systemic source of
problems, we are left to
‘push on’ symptoms
rather than eliminate
underlying causes.
- Peter Senge
The Fifth Discipline

Step 6: Implement Corrective Action 2
• Implement the solutions
after getting management
approval
• Train people on the
changes made

Step 8: Standardize & Follow Up 2
• Identify additional improvements that may be
made for the future
• Present the results to managers and other
teams
• Use the lessons learned to improve the
improvement process itself
• Celebrate the success
• Plan for future projects

Problem Solving Tools
• Seven basic tools
Stratification
Check Sheet
Control chart (Run chart)
Pareto Chart
Cause & Effect Diagram
Histogram
Scatter Diagram

2. Check Sheet (a.k.a. Tally Sheet)
• Purpose
To manually collect data in a reliable, organized way
• When to use
For manual recording of data
To ensure that data is recorded accurately and is easy
to use later
When recording involves counting, classifying,
checking or locating
To check each measurement as it is recordedThis document is a partial preview. Full document download can be found on Flevy:

Example: Control Chart
Phase 1 Phase 3Phase 2
Xbar Chart
Data points outside the control limits suggest that there are
special causes to the process deviation

4. Pareto Chart
• Purpose
To show relative importance of a set of measurements
Also called the “80/20” rule
• When to use
To differentiate the ‘vital few’ from the ‘trivial many’
After improving a process, to show relative change in
a measured item
Sorting a set of measurements to emphasize their
relative sizesThis document is a partial preview. Full document download can be found on Flevy:

5. Cause & Effect Diagram
(a.k.a. Ishikawa Diagram, Fish-bone Diagram)
• Purpose
To identify and structure the causes of a given effect
• When to use
When investigating a problem, to identify and select
key problem causes to address
When effect of a problem is known, but possible
causes are unclear
To find other causal relationships, such as potential
risks or causes of desired effects

6. Histogram
• Purpose
To show the frequency distribution of a set of
measurements
• When to use
To investigate the distribution of a set of
measurements
To define reasonable specification limits for a process
When you want to see the actual shape of the
distributionThis document is a partial preview. Full document download can be found on Flevy:

Example: Scatter Diagram

Why Use the A3 Storyboard Format?
• Enhances logical thinking
• Enhances decision-making
• Provide standardized method of communication
• Focuses on problem solving activities
• Eliminates waste
A3 storyboard ties to Lean Thinking initiatives

1
2
4
3
5
6
7
A3 Storyboard Format

What Are “Kaizen Eyes”?
• Kaizen is continual improvement for the better.
• "Kaizen Eyes" see opportunities to improve.
These eyes are a skill that can be developed
through technique and practice.
• The following slides are ways (techniques) to be
practiced. They will help to widen the ability to
recognize opportunity that may not be in full
view.

Ways to Develop “Kaizen Eyes” 3
• Put yourself in someone else's role
• Visit other places
• Take pictures
• Draw the value stream map
• Ask yourself what normal should look like
• Measure Takt (rhythm of the process)
• Audit standard work
• Design a simulation
• Do logic puzzlesThis document is a partial preview. Full document download can be found on Flevy:

Management’s Role in Kaizen
Implementation
• Communicate the need to change
• Demonstrate personal commitment to process
improvement
• Educate and train staff in Kaizen
• Plan and manage the improvement process

Being A Good Leader
“A leader is best when people
barely know he exists, when
his work is done, his aim
fulfilled, they will say: we did it
ourselves.”
- Lao Tzu

Keys To Success
• As a team – be open minded and supportive
• Understand Kaizen concepts
• Effectively use Kaizen methodologies and tools
• Keep it simple
• Becoming truly Lean is a journey and will not be
made without some discomfort

End of Presentation
To view the full list of training presentations,
please visit us at:
Operational Excellence Consulting
http://www.oeconsulting.com.sg

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