March 2011

THE WORKPLACE CHALLENGE

Tools for Conducting a Kaizen Project

NEWSLETTER

The purpose of the Workplace Challenge Programme (WPC) of Productivity SA is to help South African enterprises to implement Lean / World-class / Best Operating Practices / Continuous Improvement Programmes in a Networking context. The purpose of the WPC Newsletter is to share the lessons learned among enterprises that are busy implementing these practices and principles. Between 2006 and 2010, the Japan Productivity Center (JPC), as partner of Productivity SA and other Pan African Productivity Association members (Botswana, Kenya, Zambia and Mauritius) presented a few very useful productivity improvement techniques to the Workplace Challenge Change Facilitators. In this March 2011 Issue of our Newsletter we would like to tell you of One such technique, the Kaizen Project Method which the JPC presented to Productivity SA during 2009 and 2010. As you may know, Kaizen is the Japanese word for Continuous Improvement. We would like to present you with a summary of the Kaizen Project Method and demonstrate its application by means of one recent case study. The Kaizen Project (KP) Method At the heart of the Kaizen Project method is the KP Sheet which is a short and powerful Problem Solving Framework, developed by the Japan Productivity Center (JPC). It is similar to the A3 process of the Lean Manufacturing discipline. It is a simple means of summarizing and communicating about a Kaizen Project. The KP Sheets purpose is to Guide a Problem Solving Team (Kaizen Team), and to help Display ( to management and other stakeholders) simply and with impact: The various Problems experienced by the team The Root Causes of problems as determined by the team The Actions planned and taken by the team to solve the root causes of problems The Direct Results of the actions The Impact of the actions on people, costs etc. Future Continuous Improvement actions Following the KP Sheet Method, a Kaizen Project involves 10 Steps: 1. Identify *Kaizen Projects for Quality Improvement (* Short term project and Mid term project) 2. Set Kaizen Goal based on prioritisation of problems 3. F ocus on specific defects to be addressed by looking at the Current Situation (Genjitsu) 4. Uncovering causes of defects 5. Formulate Hypotheses about the real causes of defects based on actions 3&4

WORKPLACE CHALLENGE

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THE WORKPLACE CHALLENGE

6. 7. 8. 9. 10.

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Gather facts and data, and conduct experiments to Confirm Hypotheses right or wrong Take counter action to improve the situation Measure Direct Result of Kaizen Actions Measure Other Effects of Kaizen Actions Take action to prevent return to previous state

Lets look at these steps one by one: Step 1. Identify *Kaizen Projects for Quality Improvement To be able to deal effectively with company problems (especially quality problems), the JPC suggests a Small Kaizen Team be appointed. Let us look at each of these steps in some more detail. The JPC advises that we need to evaluate the companys current situation to prioritize problems to target through Kaizen Projects *(Continuous Improvement Projects). Key questions to ask oneself are: Which quality defects are troubling the company? Are there any products produced by the enterprise where quality is unstable? Step 2. Set Kaizen Goal based on prioritisation of problems

U sually we select the problems with the highest scores out of 10 to deal with through the Kaizen Project Method. Agree on the goals of Kaizen for Quality Improvement.

A t this point any goal may be seen as too steep because people may have grown used to the specific problem, but it is important to set a goal to motivate team members involved

WORKPLACE CHALLENGE

March 2011

THE WORKPLACE CHALLENGE

NEWSLETTER

Start filling in the different pieces of information on the KP Sheet (Kaizen Project (Summary) Sheet) (see attached image) This becomes a valuable communication instrument, because it will show the whole Kaizen Project at a glance T he wording of each step (especially 4, 5, and 6) may have to be rewritten from time to time during the project as a result of new insights or investigations, but this is normal in Kaizen Projects.
Step 2.1 Step 2.2 Step 3.1 Step 3.3 Step.5.1

Step 3.2

Step 8

Step 5.2

Step 9 Step 10

Step 6&7

Step 3. Focus on specific defects to be investigated To be able to understand everything around the defects troubling the organisation it is important for the Kaizen Team to Make Observations of the Current Situation (JPC Calls the Current Situation Genjitsu). To make sense of ones Observations, three actions might be helpful C ollect samples of Normal and Defect Products (Genbutsu): Make sure you can distinguish between Normal Products and all types of Defects. One can collect samples for a period of 1 month, 1day or 1hr etc. Keep Samples of Defect Products (Genbutsu) for future reference. Classify the Defect Products by type and count the number of each type. Calculate the Defect Rate (defect per product) for each type and produce statistics. A nalyse defects statistics and draw Pareto diagram. A Pareto diagram helps to identify the 20% of the products that make up 80% of the defects. If one can solve the real cause of this defect, you would solve 80% of the problem. Upon interpreting the blue line on the Pareto diagram below it becomes clear that Defect 1 represents about 60% of the problem, and Defect 1, 2 and 3 together, make up 90% of the problem.

WORKPLACE CHALLENGE

March 2011

THE WORKPLACE CHALLENGE

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Step 4. Uncovering causes of defects. The JPC suggests 4 useful techniques to help the Kaizen team to get to the root cause of the problem: L ook at (Samples of Normal and Defect Products (Genbutsu) O bserve Manufacturing Space (5M&E or Men, Machine, Materials, Method, Measurement & Environment) (Genba) Analyse Distribution of Product Quality Data, or Analyse simultaneous data of Production Factors (5M&E) vs Quality Step 4.1 By looking at Samples of Normal and Defect Products (Genbutsu) will help the Kaizen Team to understand the real nature of defects, and as such will help to determine the Causes of Defects. Consider the following example:

Step 4.2 Observing Genba (Manufacturing Space)(focusing on 5M&E) can be done by means of a tour of the Production Facility, by taking Photos or Videos and by talking to Operators or Team Leaders Step 4.3 Checking the Distribution of Product Quality data may help to determine why the defect products are below or above the standard specifications:

WORKPLACE CHALLENGE

March 2011

THE WORKPLACE CHALLENGE

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Step 4.4. By checking Simultaneous Data of Product Quality, 5M, and Environment Factors one can often see patterns which may indicate the reason for certain defects. See the diagram below:

Step 5. Formulate Hypotheses about causes of defects based on actions of step 3, 4.1, 4.2, 4.3 and 4.4 The JPC relies on the tried and tested Fishbone Diagram to guide the Kaizen Teams brain storming, but one can also use other Hypothesis techniques such as the 5 Why technique to think why different Defects can happen, and thinking through what the Root Causes of defects are? The Fish Bone Chart helps the team to focus again on 5M & E

WORKPLACE CHALLENGE

March 2011

THE WORKPLACE CHALLENGE

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The 5 Why technique used by the Workplace Challenge Programme also helps the Kaizen Team to focus on 5M & E:

Step 6. The JPC experts stressed the importance of gathering facts and data, and conducting experiments to prove Hypotheses right, or wrong, in other words making sure of the Root Cause before embarking on an expensive solution that might prove ineffective! The key is to conduct an experiment and to gather data with the purpose of making sure whether we found the real cause(s). This should again be done for each type of defect, and again focusing on 5M&E. Consider the diagram below:

WORKPLACE CHALLENGE

March 2011

THE WORKPLACE CHALLENGE

NEWSLETTER

Step 7. Take counter action to improve the situation Once the Kaizen Team is sure of the Root Causes of Defects / the problem, they can do a Brainstorming session to come up with ideas of counter actions to eliminate the Root Cause(s) and so improve the situation. Then of course they must agree on actions to be taken (Kaizen Contents) to address the real cause(s), and then the last step is to carry out the actions as planned. Step 8. Measure the Direct Result of Kaizen Actions The direct quality result the Kaizen Team wants from Kaizen actions, is a reduction in the number of defects produced. Less defects means less customer complaints.

Step 9. Measure Other Effects of Kaizen Actions The JPC distinguishes a number of areas of Other Effects where the Kaizen Project may have had an effect. While monitoring the impact of the Kaizen Project one should look for effects in the areas of Economic effect (profit & loss); Improvement in human relations; Improvement in peoples ability / skill; or Improvement in teamwork. The WPC Programme measures impact in five easily definable areas following the acronym QCDSM:

WORKPLACE CHALLENGE

March 2011

THE WORKPLACE CHALLENGE

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Q = Quality this can be done by measuring the number of Defects as in step 8, or by counting a reduction in the number of customer complaints C = Cost. This can be done by monitoring the cost of production and specifically the cost of defects, and even increases in profit D = Delivery, meaning improvements in lead times as a result of a reduction in rework S = Safety. Maybe the defects were caused by an unsafe procedure. Then a reduction in injuries may be regarded as a result of the Kaizen Project M = Morale or People. This can be measured in aspects like absenteeism, number of grievances or improvements in skills level

Step 10. Take action to prevent a return to previous state and to ensure Continuous Improvement When the Kaizen Team has dealt with the 20 % problems causing the 80% of the defects ( refer back to step 3) they can turn their attention to the remaining problems to attempt reducing defects to zero. They can do a Kaizen Project focusing on those other causes. They should also remember that once they turn their attention away from the problem they have solved recently, it may resurface if they do not take action to sustain thesolution, especially if the problem was rooted in human nature. Therefore, to prevent a relapse, the JPC Consultants advise the Kaizen Team to: Formulate a Point Card (.This simply means Revising the Work Standard or Standard Operating Procedure Educate the Workers on the Point Card (Revised Work Standard) Consider the diagram below-

Presentation In presenting the Results and Actions followed during the Kaizen Project to management or other stakeholders, the KP Sheet (see Diagram between steps 2 and 3) and every step mentioned above can be captured in a Power Point presentation. By simply creating internal links between the slides, the Kaizen Team can present the whole Project with impact by using the KP Sheet as the central slide and jumping to the different slides displaying each of the 10 steps of the Kaizen Project.

WORKPLACE CHALLENGE