KAIZEN

The Key to Japans Competitive Success

By VIVEK SHAH KINJAL GUPTA PALAK DABAS VINIT HANKARE VICTORY ABRAHAM 11030241180 11030241191 11030241190 11030241179 11030241186

TABLE OF CONTENTS
1. KAIZEN, The Concept

2. Improvement East and West

3. KAIZEN Management

4. The KAIZEN Approach to Problem Solving

5. KAIZEN, The Practice

6. Changing the Corporate Culture

KAIZEN The Concept

RECTIFICATION

CONTINUAL IMPROVEMENT

INNOVATION

DAY-TO-DAY

 The story of the Kaizen miracle started in the 1930s. Sakichi Toyoda, founder of Toyota, which manufactured automatic looms at the time  In 1950 Toyota implemented quality circles leading to the development of Toyotas unique Toyota Production System.  These continual small improvements (Kaizen) add up to major benefits. They result, for example, in: faster delivery, lower costs, and greater customer satisfaction.  In 1986 Masaaki Imai introduced to the Western world the Japanese term Kaizen and made it famous through his book, Kaizen: The Key to Japan's Competitive Success.

Three Award in Sumo Tournament ; - An outstanding performance award - A skill award - A fighting spirit award

Focus more on process Rather than result !!!

Improvement East & West

TRADITIONAL METHOD VS KAIZEN

KAIZEN

Continuous Improvement

INNOVA TION
Breakthrough

Science

Technology

Design

Production

Market

Innovation

KAIZEN

KAIZEN
Long term Un-dramatic

INNOVATION
Short term Dramatic

Effect

Small steps

Pace

Big steps

Continuous & incremental

Time frame

Intermittent & non incremental

Gradual & consistent

Change

Abrupt & volatile

Everybody

Involvement

Champion

Collectivism, group efforts, systems approach

Approach

Rugged individualism, individual ideas & efforts // YIS//062709//

KAIZEN
Maintenance & Improvement

INNOVATION
Scrap & Rebuild

Mode

Conventional know-how & state of the art

Spark

Technological breakthroughs, new inventions, new theories

Little investment Great effort to maintain

Practical Requirements Effort orientation Evaluation criteria Economic condition

Large investment Little effort to maintain

People

Technology

Process & efforts for better results

Results for profits

Slow growth economy

Fast growth economy // YIS//062709//

Standard Maintenance Actual Standard Maintenance Innovation Actual

Innovation

Time

Actual Standard

KAIZEN

Innovation + Kaizen
Innovation

Actual KAIZEN Standard Time // YIS//062709//

 Widely applicable Can be used in both manufacturing and non-manufacturing environments  Highly effective & results oriented. Kaizen events will generate quick results, Measurable results, Establish the baseline, and measure the change!!!  A Learning Experience Every member of a Kaizen Team will walk away from the event learning something new! !  Team based & cross functional Team members can be from various functions of the business. Top management participation is encouraged.

KAIZEN MANAGEMENT

Management & Labor ; Enemies or Allies?

Cooperation Working together to bake bigger pie

Confrontation fighting over how to divide the pie

JOBS FUNCTION PERCEPTIONS

Japanese perceptions Western perceptions

Top management Middle management Supervisors Workers

Top Management
Determine to introduce Kaizen as a corporate strategy Provide support and direction for Kaizen by allocating resources Establish policy for Kaizen and cross functional goals Realize Kaizen goals through policy deployment and audits Build system, procedures, and structures conducive to Kaizen

Middle Management and Staff

Deploy and implement Kaizen goals as directed by top management through policy deployment and cross functional management Use Kaizen in functional capabilities Establish, maintain, and upgrade standard Make employees Kaizen-concious through intensive training programs Help employees develop skills and tools for problem solving

Supervisors

Workers

Use Kaizen in functional rules Formulate plans for Kaizen and provide guidance for workers Improve communication with workers and sustain high morale Support small group activities (such as quality circles) and the individual suggestion system Introduce discipline in the workshop Provide Kaizen suggestions

Engage in Kaizen through the suggestion system and small group activities

Practice discipline in the workshop

Engage in continuous selfdevelopment to become better problem solvers

Enhance skills and job performance expertise with cross education

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Manager's first job is to learn to communicate with his employees so both workers and the company can achieve their common goal

Union leader who cannot understand financial statement and analyze the company's performance will not be able to negotiate with management on such laborrelated subjects as technological innovation, personnel transfers, and scrapping facilities

The KAIZEN APPROACH to PROBLEM SOLVING

When there is no problem , there is no potential for improvements

KAIZEN starts with a problem, more precisely the

recognition that a problem exists

Seven Statistical tools

Pareto diagrams Cause & Effect diagram Histograms Control charts Scatter diagram Graphs Check-sheets

New Seven tools

Relations diagram Affinity diagram Tree diagram Matrix diagram Matrix data-analysis diagram PDPC (Process Decision Program Chart) Arrow Diagram
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VELOCITY FOR COMPETITIVE ADVANTAGE

Standardization Process optimization Elimination of waste

Evolution in people and technique

Durable training
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KAIZEN the PRACTICE

1. Quality assurance TQC 2. Cost reduction 3. Meeting production quota 4. Meeting delivery schedule 5. Safety 6. New-product development 7. Productivity improvement 8. Supplier management

TQC

ACT PLAN
Standardization Definitions of problem

CHECK

Confirmation of results

Analysis of problem

Implementation Planning countermeasures

Identificati on of causes

DO

Seiton (Set in order)

Seiri (Straighten up)

Seiso (Shine)

5s
Shitsuke (Sustain)

Seiketsu (Standardize)

Who
Who does it?

What
What to do?

Where
Where to do it?

When
When to do it?

Why
Why does he do it?

How
How to do it?

Who is doing it? What is being done?

Where is it done? Where should It be done?

When is it done?

Why do it?

How to do it?

Who should be doing it?

What should be done?

When should it be done?

Why do it there?

How should it be done? Can this method be used in other areas?

Who else can do What else can be Where else can What other time it? done? it be done? can it be done?

Why do it then?

Who else should What else should be do it? done?

Where else should it be done?

What other time should it be done?

Why do it that way?

Is there any other way to do it?

Who is doing 3Mus?

What 3-Mus are being done?

Where are 3Are there any 3Are there any time Mus being Mus in the way of 3-Mus ? done? thinking?

Are there any 3-MUs in the method?

SEVEN WASTES !!

Shortened lead time Reduced time spent on non-process work Reduced inventory

J I T

Better balance between different processes Problem clarification

CHANGING the CORPORATE CULTURE

 Canon of Japan implemented in 1975 to excel over international competition and expand its operations on a global scale in 6 years.  Canon put in place a special matrix management system with numerous small group activities.  The purpose was to eliminate wastes, revitalize the workforce, and improve continuously in all business processes.  Techniques like Canon Production System, Quality Assurance, Production Assurance, and Personnel Training were introduced. Canon achieved an astonishing 3% per month productivity increase.

 Fidelity Investments offers various financial services.  Chairman and CEO, Johnson, introduced Kaizen in Fidelity by setting up a separate group to promote Kaizen.  Each division was defined as a separate company or business unit.  Employees were motivated to the maximum, leadership qualities were encouraged, and progress on goals was evaluated on monthly and quarterly basis for adjustments and refinements.  Customer satisfaction improved in long-term. and profitability

 Gold Seal Engineering Products is an India-based automotive spares manufacturer, with exports to several countries.  The 5S principles of Kaizen were implemented to cut down the production set-up time by 33%.  In 6 months, production space increased 45%, lead time was down by 25%, scrap was reduced by 75%, machine down time dropped by 60%, and response time got reduced by 42%.

 Resistance to change  Lack of proper procedure to implement  Too much suggestion may lead to confusion and time wastage

 Kaizen Reduces Waste- like inventory waste, time waste, workers motion  Kaizen Improves space utilization, product quality  Results in higher employee moral and job satisfaction, and lower turn-over.

KAIZEN PHILOSOPHY

Be it our working life, our social life, or our home life, deserves to be constantly improved

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