Understanding the concept of Kaizen

1. AA STRATEGY FORY FOR
PERFORMANCEPERFORMANCE
EXCELLENCEEXCELLENCE

2. CONTINUOUS
IMPROVEMENT
FOR THE
BETTER
Kaizen aims to eliminate waste ("activities that add cost but do notKaizen aims to eliminate waste ("activities that add cost but do not
add value").add value").
It is often the case that this means "to take it apart and put backIt is often the case that this means "to take it apart and put back
together in a better way."together in a better way."
This is then followed by standardisation of this 'better way' withThis is then followed by standardisation of this 'better way' with
others, through standardized work.others, through standardized work.

3. Process-Oriented Thinking
vs.
Result-Oriented Thinking
Kaizen concentrates at improving the
process rather than at achieving certain
results.
Such managerial attitudes and process
thinking make a major difference in how
an organization masters change and
achieves improvements.

5. Kaizen and Management
Management has two major components:
Maintenance, and Improvement.
MAINTENANCE: The objective of the maintenance function is
to maintain current technological, managerial, and operating
standards.
IMPROVEMENT: Under the improvement function,
management works continuously towards revising the current
standards, once they have been mastered, and establishing
higher ones. Improvement can be broken down between
innovation and Kaizen. Innovation involves a drastic
improvement in the existing process and requires large
investments. Kaizen signifies small improvements as a result
of coordinated continuous efforts by all employees.

6. Visual Control & the Workstation
The 5 SThe 5 S
To Sort
Eliminate what’s
not absolutely
necessary
To Sanitize
Improvement of
the workstation.
Be organized to
reduce clutter.
To Straighten
Ensure space for each
thing, and a thing for
each space. No more
searching.
To Sweep
Maintain a clean and
orderly space to make
problems easily
identifiable. Eliminate
rejects and scrap..
To Sustain
Maintain
continuous effort.
This is a way of
life.

7. Employee Empowerment: the Suggestion System
• The suggestion system is an integral part of an established management system that aims at involving
employees in Kaizen. The number of worker's suggestions is regarded as an important criteria in reviewing
the performance of the worker's supervisor and the manager of the supervisor.
• The Japanese management encourages employees to generate a great number of suggestions and works
hard to consider and implement these suggestions, often incorporating them into the overall Kaizen strategy.
Management also gives due recognition to employee's efforts for improvement. An important aspect of the
suggestion system is that each suggestion, once implemented, leads to an upgraded standard.
Kaizen's Starting Point:
Setting the Right Mindset & Business Environment
• not a single day should go by without some kind of improvement being made somewhere in the company
• customer-driven strategy for improvement - any management activity should eventually lead to increased
customer satisfaction
• quality first, not profit first - an enterprise can prosper only if customers who purchase its products or services
are satisfied
• recognition that any corporation has problems and establishing a corporate culture where everyone can
freely admit these problems and suggest improvement
• problem solving is seen as cross-functional systemic and collaborative approach
• emphasis on process - establishing a way of thinking oriented at improving processes, and a management
system that supports and acknowledges people's process-oriented efforts for improvement

8. The Key Kaizen Practices
Mindset & Culture Production Process
• customer orientation
• quality control (QC) circles
• suggestion system
• discipline in the workplace
• small-group activities
• cooperative labor-
management relations
• total quality control (TQC)
• quality improvement
• automation & robotics
• autonomation
• zero defects
• total productive
maintenance (TPM)
• kamban
• just-in-time (JIT)
• productivity improvement
• new product development

10. Definition
• Voluntary groups of employees who work on
similar tasks or share an area of responsibility
• They agree to meet on a regular basis to discuss &
solve problems related to work.
• They operate on the principle that employee
participation in decision-making and problem-
solving improves the quality of work

11. Genesis
• Quality Circles were first seen in the United States in the
1950’s
• After World War I Japanese started using them for
improving products and reliability of manufacturing
• Circles were developed by Dr, Kaoru Ishikawa in Japan in
the 1960’s
• By 1975 Japanese were topping the world in quality and
Productivity
• Circles were re-exported to the US in the early 1970’s and
was accepted all over the world
• 1980s brought TQM and reduction in use of Quality
Circles

12. Philosophy
1. It is people – building philosophy
2. It is based on providing self - motivation
3. Also based on deriving happiness in improving
environment without any compulsion or monetary
benefits.
4. It calls for progressive attitude on the part of
management
5. Willingness of management to make adjustment in style
and culture

13. Concept
Quality Circle concept has three major attributes:
a. Quality Circle is a form of participation management.
b. Quality Circle is a human resource development
technique.
c. Quality Circle is a problem solving technique.
The concept of Quality Circle is primarily based upon
recognition of the value of the worker as a human being,
as someone who willingly activises on his job, his wisdom,
intelligence, experience, attitude and feelings.

14. Objectives
The objectives of Quality Circles are multi-faced.
a) Change in Attitude.
From "I don’t care" to "I do care"
Continuous improvement in quality of work life through
humanisation of work.
b) Self Development
Bring out ‘Hidden Potential’ of people
People get to learn additional skills.

15. Objectives
c) Development of Team Spirit
Individual Vs Team – "I could not do but we did it"
Eliminate inter departmental conflicts.
d) Improved Organisational Culture
Positive working environment.
Total involvement of people at all levels.
Higher motivational level.
Participate Management process.

16. Organisational Structure
Basic Framework of Organisational Structure for Quality Circles
Steering Committee
Coordinator
Facilitator
Circle Leader
Circle Members

17. Launching Quality Circles
 Expose middle level executives to the concept.
Explain the concept to the employees and invite them to
volunteer as members of Quality Circles.
Nominate senior officers as facilitators
Form a steering committee.
The Steps involved in launching of quality circles are:

18. Arrange training of coordinators, facilitators in basics of
Quality Circle approach, implementation, techniques and
operation. Later facilitator may provide training to Circle leaders
and Circle members.
A meeting should be fixed preferably one hour a week for the
Quality Circle to meet
Formally inaugurate the Quality Circle.
Arrange the necessary facilities for the Quality Circle meeting
and its operation.
Launching Quality Circles

19. Training
Training is very essential for successful operation of Quality Circles
Such Training comprises of:
 Brief Orientation programme for top management
 Programme for middle level executives
 Training for facilitators
 Training for circle leaders

20. Process of Operation
1. Problem Identification: Identify a number of problems
2. Problem Selection: Check priority and importance
3. Problem analysis
4. Generate alternative solutions
5. Select most appropriate solution
6. Prepare plan of action
7. Present solution to management
8. Implementation of solution

21. Basic problem solving Techniques
Techniques Used
1. Brain Storming
2. Pareto Diagrams
3. Case and Effect Relation
4. Data Collection
5. Data Analysis
Tools used for analysis
1. Tables
2. Bar Charts, Line Graphs
3. Histograms
4. Control Charts
5. Scatter diagrams

22. Benefits Limitations
• Increase Productivity
• Improve Quality
• Boost Employee Morale
• Inadequate Training
• Unsure of Purpose
• Not truly Voluntary
• Lack of Management
Interest
• Quality Circles are not
really empowered to
make decisions.