Implementing Kaizen Philosophy Within

Hidroelectrica
Author: Ionela Stancu - Project Manager
Crowne Plaza Hotel, Bucharest, November 21, 2011

Making Good Companies Great ...

The Conference is organized by
KAIZEN Institute Romania,
together with KAIZEN Institute
Global, adicted to Kaizen
Management / Lean
Management Continuos
Improvement Management.

PROJECT TITLE : FORMAREA I PERFECIONAREA PERSONALULUI SOCIETII, N

CONFORMITATE CU STRATEGIA DE DEZVOLTARE A RESURSELOR UMANE, BAZAT PE PRINCIPIILE
MBUNTIRII CONTINUE A NTREGII ACTIVITI, N SCOPUL CRETERII CAPACITII DE
ADAPTARE A SOCIETII LA MEDIUL ECONOMIC N SCHIMBARE.
The Proiect is financed from Sectorial Operational Program Developing of Human
Resources 2007-2013: Invest in people !
State help scheme for general and specific proffesional training Money for Professional
Training !
Priority axis 3 Rising the ability of workers and enterprises
Major intervention domain 3.2 Training and support for enterprises and employee for
promoting adaptability
ID number of the contract: POSDRU/77/3.2/A/61491
Beneficiary: S.C. HIDROELECTRICA S.A.
Project duration : 21 Months

Project budget:
Hidroelectrica SA contribution
40,95% 600.000 lei
Grant Financial assistance
59,05% 865.000 lei

Project goal
The Project promotes a gradual change of mentality in the
organization by introducing the KAIZEN concept, the
continuous improvement of process efficiency in organization ;
Certifying a number of specialists within the organization for
continuing the training in process improvement after
finalizing the project as well project sustainability;
The training of 17% of the employees for a continuous
improvement of their activities, and the processes
(30.04.2012).

Weve begun to build the projects culture..

CONTINUOUS IMPROVEMENT: A STORY FROM THE TIME OF ESOP
THE IMAGE BELONGS TO KAIZEN: THE KEY TO JAPANS COMPETITIVE SUCCES, BY
MASAAKI IMAI (MCGRAW HILL, 1986)
CONTINUOUS IMPROVEMENT, in small steps
Climbing
step by
step on a
steep slope

INNOVATION, a major change, with fast

improvement

Jump
over a
step

The activities of the project

1. Project management
2. Public aquisitions
3. Selection of the target group
4. Training of the target group
5. Strategy and work procedures development for
implementing the continuous improvement
philosophy in the entire organization PROJECT
SUSTAINABILITY
6.Dissemination of the results
7. Promotion and project visibility

Completed implementation stages

Opening Project Conference
SELECTION
TRAINING:
Employees Awareness in subsidiaries through organizing an
awareness course (120 employees, the courses were organized in 4
subsidiaries)
Course for process improvement specialists (45 employees)
Course for process improvement managers (15 employees)

The strategy for the dissemination of the Kaizen philosophy in the

company

The strategys expected results

Dissemination and continuous sustainability of the project for
training of our own employees in the next three years:

Until 30.04.2012: 17% of employees;

Until 31.12.2012: 40% of employees;
Until 31.12.2013: 65% of employees;
Until 31.12.2014: up to 90 % of employees.

STRATEGY - in development together with

KAIZEN Institute Romania .
1.1 AWARENESS through practical and theoretical training

I. EMPLOYEE
TRAINING

17%
90%

1.2 TRAINING THE NEW

KAIZEN TRAINERS

until 31.12.2012
A minimum
of 5 sites
5S/ SH

Development of 5S sites

II.COST AND
STOCKS
REDUCTIONS

Development of TPM sites

Flow optimization
Stock reduction

until 30.04.2012
until 31.12.2014

4 sites/ SH

A minimum of 3 flows

Kanban for supplies

The projects results

The annual minimum numbers of suggestions for
process improvement = 2 /employee
The number of suggestions thet can be
implemented from the total of suggestions
received from the employees =a minimum of 5%/
year
2% from the estimated annual increase for work
efficiency in physical units for the total medium
employees will represent the effect of
implementing the process improvement strategy.

This is how it started.

Opening Conference, 16.11.2010

The portrait of the kaizen manager:

Strong points= talent+ (abilities + knowledge)

Performance oriented
Willing to learn and to teach others
With respect for work and profession
Good team work abilities
Creative
Tenacious
Responsible
Ambitious
An empathic person
Modest
13

Selection of the target group

The selection procedure developed with the
KAIZEN Institute Romania
How?
in cascade
120 employees awareness trained in the
KAIZEN Basics 45 process improvement
specialists
15 kaizen managers.

SELECTION STAGES

Selecting the
employees for the
Managers Training
Program

Selecting the
employees for the
Awareness Program

Selecting the
employees for the
Specialists Training
Program

Selecting the
employees for the
Dissemination
Program (900)

Criteria for the selection of the 120 employees group

that were trained in the KAIZEN philosophy
Results obtained by the employees at the annual
individual performance assessment;
Results obtained following the occupation interest
questionnaire applied by the companys
psychologists;
Territorial dispersion (implication of all subsidiaries).
700 EMPLOYEES from those with superior studies
applied ( about 40%) !!!!

Criteria for the selection of the 45 specialists process

improvement group from the employees that were
trained in the KAIZEN philosophy
Results obtained in the awareness program (theory
and involvement in the 5S sites);
Supplementary: territorial criteria (maximum 6minimum 2 employees qualified as process
improvement specialists/ subsidiary depending on
its size) .

Criteria for the selection of the 15 kaizen managers

group among the certified process improvement
specialists
Results obtained within the process improvement
specialists program (35% theory and 35% KAIZEN practice);
Future KAIZEN managers Leadership Potential (30%)
evaluation performed with an instrument developed by the
GALLUP company for HIDROELECTRICA SA.
Supplementary: employee desire, territorial criteria
(minimum 1 manager / subsidiary ) .

TRAINING (phase 1) : Awareness Courses

Where are we training the employees in KAIZEN awareness?
....at BISTRIA, PORILE DE FIER, ARGE and VLCEA

Oradea

Bistrita
Bistrita

Cluj
Cluj
Sebes

Hateg
Hateg

Caransebes
Caransebes

Sibiu

Sebes
Sibiu Rm Curtea
Tg .Jiu
Jiu Valceade Arges
Tg

Rm. Valcea
Slatina
Portile
Portile
Fier
de
deFier
Slatina

Buzau
Buzau

Bucuresti
Bucuresti

The subsidiaries
where we
implemented the
awareness
program

Bistrita Hydroelectric Subsidiary,

Stejaru HPP

Portile de Fier Hydroelectric Subsidiary,

Porile de Fier 1 HPP

Curtea de Arges Hydroelectric Subsidiary,

Vidraru Dam

Ramnicu Vilcea Hydroelectric Subsidiary,

Lotru Ciunget HPP

First stage of training:

AWARENESS COURSES IN THE FOUR SUBSIDIARIES :

Ramnicu Vilcea

Portile de Fier

Curtea de Arge Multifunctional Hall

Bistrita- Piatra Neamt

5S Site Organization in subsidiaries

Ramnicu Vilcea Office Turnu HPP

Portile de Fier - Warehouse

Curtea de Arges Administrative office Vidraru HPP

Piatra Neamt Plant dispatcher

The teams worked efficiently !

Ramnicu Vilcea Engine Hall Turnu HPP rack tidying

Porile de Fier - Warehouse

Curtea de Arges Administrative Office Vidraru HPP

Piatra Neamt - Warehouse

We found and solved the problems ...

Numar de
Numarof
probleme
identificate
93.71 %
%
Number
ofprobleme
problemsrezolvate/
solved/ Number
problems
identified == 93.71

Number of problems solved/ Number of problems identified = 93.36 %

350
286

300

268

250
200
142

150
88

100
56

132

problems
probleme
identified
identificate

problems
identified

probleme
problems
rezolvate
solved

problems
solved

84

52

50
0

S1

S2

S3

sortare
Sorting

ordonare
Tidying

stralucire
Cleanliness

TOTAL

Sorting

Ramnicu Vilcea

Tidying

Cleanliness

Curtea de Arges

Number of problems solved/ Number of problems identified = 98.03 %

Number of problems solved/ Number of problems identified = 95.97 %

problems
problems
identified
identified

problems
identified

problems
problems
solved
solved

problems
solved

Sorting

Tidying

Cleanliness

Portile de Fier

Sorting

Tidying

Cleanliness

Piatra Neamt

The power of visual management .

Ramnicu Vilcea
Warehouse Turnu HPP

Portile de Fier - Office

Curtea de Arges Engine

Hall Vidraru HPP

Piatra Neamt Dispatcher Room

Second stage of training:

Process Improvement Specialists Course

Lecturer KAIZEN
Ing. Marian Dumitru
Lecturer KAIZEN
Ing. Dan Stavr

Process Improvement Specialists Course

Period : February July 2011, 152 hours/

(72 theory + 80 practice)
Module 1 Kaizen Basics
Module 2 Total Productive Maintenance Basics
Module 3 Total Flow Management Basics
Module 4 Total Quality Management Basics
Module 5 Total Services Management Basics

1- 12 August 2011: Visits in sites from the Kaizen lecturers & Project
management team in the 13 Hidroelectricas subsidiaries

1. Caransebes HS

3. Slatina HS

2. Portile de Fier HS

4. Buzau HS

1- 12 August 2011: Visits in sites from the Kaizen lecturers & Project
management team in the 13 Hidroelectricas subsidiaries

5.Oradea HS

7. Cluj HS

6. Sebes HS

8. Sibiu HS

1- 12 August 2011: Visits in sites from the Kaizen lecturers & Project
management team in the 13 Hidroelectricas subsidiaries

9. Bistrita HS

11. Ramnicu Vilcea HS

10. Hateg HS

12. Slatina HS

1- 12 August 2011: Visits in sites from the Kaizen lecturers & Project
management team in the 13 Hidroelectricas subsidiaries

13. Targu Jiu HS

The Visits from the Kaizen teams in the subsidiaries (gemba) had as purpose,
monitoring the implementation of knowledge obtained through applying
the Kaizen philosophy and practice in Hidroelectricas subsidiaries.
The necessary corrections were performed for the efficient development of
activities.

Third stage of training:

Process Improvement Managers Course

Process Improvement Managers Course

Period : September November 2011,

144 hours/(78 theory + 66 practice)
Module 1 Kaizen Coach
Module 2 Kaizen Toolbox
Module 3 Total Flow Management Basics
Advanced
Module 4 Kaizen Managers
Module 5 Kaizen Leadership

Project visibility ..
DISCUTIONS FORUM and Kaizen information exchange on
the internet.
COMPANYS INTRANET The development stages of the
project were posted on Hidroelectricas intranet;

Posting on Hidroelectricas website of the press releases

concerning the stage of the project;
Publishing in Hidroelectricas 2010 ANNUAL Report of an
article about the project.

Step by step.
A race we began with 120 employees, well continue it with
17% of the employees until 2012 and in a few years, all of the
companys employees will enter the race .

38

Thank you for your attention!

HIDROELECTRICA SA

3 Constantin Nacu St., Bucharest

www.hidroelectrica.ro