2. Decoding KAIZEN
Japanese Terminology.
Change for Better.
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Management
3. Concept of Kaizen
• People who perform the task are most knowledgeable about
that process.
• It must be achieved with 100% participation.
• This team work encourages innovation and change.
• Helps break barriers and makes room for continuous
improvement.
• Focuses upon Small but Continual Improvement.
• Approach towards higher standards in Quality enhancement and
Waste reduction.SIOM | Symbiosis Institute of Operations
Management
4. Three Pillars of Kaizen
HOUSEKEEPING
WASTE
ELIMINATION i.e.
MUDA
STANDARDIZATION
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Management
5. 1. HOUSEKEEPING
The following can be employed using the 5S methodology
5s includes
Seiri (Sort)
Seiton (Set in Order)
Seiso(Shine)
Seiketsu (Standardize)
Shitsuke (Sustain).
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Management
6. 2. WASTE ELIMINATION (MUDA)
There are seven types of wastes which are classified
as:
Muda of overproduction.
Muda of inventory.
Muda of defects (repair or rejects).
Muda of motion.
Muda of processing.
Muda of waiting.
Muda of transportation
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Management
7. 3. STANDARDIZATION i.e.
PDCA Cycle
• PLAN : Identifying & Analyzing the
problem.
• DO : Developing and Testing a Potential
solution.
• CHECK : Study and Compare the
results.
• ACT : Implementing the Improved
solution fully.
SIOM | Symbiosis Institute of Operations
Management
8. Elements of Kaizen
Kaizen comprises of five basic elements:
Teamwork
Personal discipline
Improved morale and employee satisfaction
Quality circles
Suggestion for Improvement
SIOM | Symbiosis Institute of Operations
Management
9. Kaizen culture
Creating a synergy between Management and the shop floor /
operations team
The CEO must spearhead Kaizen initiative.
Management must commit required funds, time and other
resources for all employees right from grass root levels to top.
Mapping results to processes
Processes are required to be set up to give a vivid picture to
organizational members whether results of a particular Kaizen
initiative can be directly attributed to that initiative.
Brainstorming
Organizational members need to brainstorm ideas and then
implement outcome of such brainstorming sessions so that
everyone is able to see the problem and try solutions.
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Management
10. Embedding Kaizen Culture
Establish the champion
Establish a governing committee
Start communication boards and
newsletters
Regularly track Kaizen activities on
a dash board
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Management
12. Benefits of Kaizen
Kaizen involves every employee in making change in most
cases small, incremental changes
It focuses on identifying problems at their source, solving them
at their source, and changing standards to ensure the problem
stays solved
Kaizen reduces waste in areas such as inventory, waiting times,
transportation, worker motion, employee skills, over
production, excess quality and in processes
Kaizen Improves space utilization, product quality, use of
capital, communications, production capacity and employee
retention
Kaizen Provides immediate results. Instead of focusing on large,
capital intensive improvements, Kaizen focuses on creative
investments that continually solve large numbers of small
problems.
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Management
13. Drawbacks of Kaizen
It’s not a programmed approach but a philosophical
approach.
It doesn’t encourage radical changes but a gradual change
over a long period of time.
It requires continuous monitoring ,supervision and
mentoring to maintain the spirit of kaizen.
It works well when the average age of employees is low.
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Management
14. Companies adopting Kaizen
GSK NASHIK
1. Corrective and preventive actions (CAPA) are formed.
2. GEMBA is carried out in the form of miniature audits.
3. Current issues and suggestions from the shop floor and other
departments are considered.
4. This is done in such a way that daily day to day activities are
not affected.
5. GSK is formulating a system called Glaxo Production
Management (GPM) system in lines with Toyota Production
Management (TPM) system.
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Management
15. Companies adopting Kaizen
FIDELITY INVESTMENTS
1. Fidelity Investments is the largest and best-known mutual
fund manager in the United States.
2. Fidelity's commitment to Kaizen is reflected in
its performance management and compensation systems.
3. Each fall, Fidelity companies establish business goals which
are tiered through the company's various divisions down to
the individual managerial level.
4. Progress towards goals is evaluated and adjusted on a
monthly and quarterly basis.
SIOM | Symbiosis Institute of Operations
Management