Kaizen Management

Kaizen Management

Continuous improvement
 What is Industry ?

Man-power Products
Machines Services
Materials
Methods
(4M’s, 1E)
 What are evaluation
criteria for the output ?

1
KAIZEN is a feedback.

KAIZEN is a corrective
action.
KAIZEN is a Japanese word
Definitions of KAIZEN

A selection of better means or a

change of current method for
achieving an objective.
An accumulation of small
changes
The First Step is...

...To Understand Why

The “Why” is Simple

Work (Manufacturing/Service) processes

basically exist for one purpose and one
purpose only--

--To add value by transforming materials,

parts or components into
products/services that customers want and
are willing to pay for...
But...

When we add value we also add costs.

The challenge is to add value faster than we add

costs. If we add costs faster than we add value,
then…
• we may have to lower our price for our
products to compete in the marketplace, or
• we end up losing money no matter what we
do.
So the first question to ask is--

Where are the costs?

The costs are hidden in our normal way of doing
business. For example,
• Inefficiencies in how we do the work
• The cost of expediting orders to get them to
the customer when they’re supposed to be
there
• Producing the wrong thing or producing the
right thing at the wrong time
• Or producing too many or not enough
 Traditional Principle of Cost

Price
Price to
to Customer
Customer

If we want to
make more profit
Profit we increase price

Cost to Make

Cost
Cost ++ Profit
Profit ==Price
Price
Today’s Principle of Cost Reduction

Price
Price to
to Customer
Customer
Marketplace Pressure

Profit If we want to
make more profit
we reduce waste
in our process

Cost
Cost to
to Make
Make

Price
Price-- Cost
Cost == Profit
Profit
 Have a Vision
A clear vision, with a strategy for achieving it,
gives a context to all subordinate activities.

Vision without action is merely a

dream.
Action without vision is just
passing time.
Vision and action can change
Vision
the world.
Joel Barker
Strategy
 Vision for Excellence

“Our design and production systems will be among

the best in the world with:
•Short Time to Market
•Short Flow Times
•Short Cycle Times
•High Quality
•Minimum Physical Resources
(Machines, Tooling, Floor Space)
•Low Inventory.”
 Strategy

If necessary, revise Ensure plans for further

objectives against vision actions are consistent
ACT PLAN with vision and
strategy.

Check result CHECK DO Application of methods,

against strategy and
tools and actions gives
vision.
a result.

IfIfthe
thevision
visionisn’t
isn’tclear,
clear,and
andthe
thestrategy
strategyand
andobjectives
objectivesdon’t
don’t
support
supportit,it,how
howcan
canyou
you“Check”
“Check”your
yourresults?
results? You
Youhave
haveno
no
way
wayof ofknowing
knowingififyou
youare
aremoving
movingforward.
forward.
 3 Core Competencies

1. Detailed customer/market knowledge and focus.

2. Large-scale quality/productivity campaign.

3. Lean, efficient design and manufacturing - falls under the

"must be very good" category.
We can secure our future if we do this well.
Lean, efficient design and manufacturing is key to winning markets.
It is key to great margins on the exports.
It is key to market success of the domestic consumer products.

We must get to lean fast - with velocity.

Why To Create a Lean Enterprise?

Business Realities
- Cost Pressures
• Hold sales prices down
• Cost of doing business is increasing
- Time Pressures
• Increased demands for faster customer
response
• Longer cycle times cost more
- Quality Pressures
• Competitor six sigma challenge
• Customer Expectation
 Lean is...
A set of principles, concepts and techniques
designed for a relentless pursuit in the
elimination of waste. Producing an efficient just-
in-time production system, that will deliver to our
customers
 exactly what they need,
 when they need it,
 in the quantity they need,
 in sequence,
 without defects,
 and at the lowest possible cost.
 A Lean System is Built on Principles

Takt-time
production paced
to the customer’s These principles will lead to:
rate of demand
• Increased production volume
One-piece flow
produces products • Faster customer response
Flow continuously without
e
piec interruption
On
e- • Higher quality
y
ead
a dy
R Pull production
Re
builds a product only • More efficient space utilization
ed
Ne
ti on when the customer
duc
ro • Lower costs
ull P has asked or
in P
ust e
J im
“pulled” for it
T
 Elements of a Lean Production System
JUST IN TIME
JIT means you get what you
need, where and when you
need it.
By reducing the overall flow
time of our products, we can
reduce many of the
associated costs of
production, such as
inventory holding costs, and
improve overall quality.
Sort Simplify
Standard Takt Time
People Work Production
JIDOKA
Stop at every abnormality
People using standard work to produce a product at a pace
that matches the rate of customer demand — takt time. We can achieve high quality
processes and products by:
•Standard WIP One-Piece stopping production anytime
Materials a defect is detected,
•Kanban Flow
designing reliable processes
and machinery to prevent
A standard quantity of materials to keep everyone in the defects from occurring in the
process operating, and a signal, which can tell you to
“build one more,” will permit one-piece flow. first place, and separating
human work from machine
work so people perform work
•Operational
Pull that requires decision-making
Machines Availability
Production and problem solving skills.
•Andon Doing these, we can eliminate
Machines available when you need them, and a signal to tell rework, scrap and lost
you when there’s a problem. Once a predictable pace of production time.
production, one-piece flow and reliable machinery are in
place, a pull production environment can be achieved.
Leveled Production
Sweep Standardize Self-Discipline
 Lean Manufacturing Kaizen Sequence

To Get Here
Pull
ay System Kaizen

Equipment Kaizen
sW

Autonomation
Thi
Go

Factory Layout Kaizen

Flow Production

Factory Kaizen
Observe Operator Methods & Create Standard Work
5. Self-Discipline
Start Here 1. Sort 2. Simplify 3. Sweep 4. Standardize
 10 Hints for Doing Successful Kaizen
1. No Excuses: Don’t make excuses.... Don’t accept excuses...
Excuses
Explanations are often still excuses (If you have time to make up
excuses, you have time to think of improvement ideas!)

2. Don’t be a concrete or titanium head: Throw out traditional

concepts.... Think how a new method can work, not how it won’t. (Switch
your mind yourself if you feel you are being a concrete head !)

3. Do Kaizen by getting your hands dirty on the shop floor:

vs. All information necessary for Kaizen is available on the shop floor..... You
can not understand a process until you observe and do it first hand.

4. Quick and crude is better than slow and elegant:

vs. Don’t seek perfection......50% Improvement Rate is fine, as long as it is
done on the spot.
5. Produce actual improvement :
VS.
Observe actual gains.....Simulation and Ideas are NOT REAL until they
are implemented, observed and maintained. .
 Implement Kaizen Newspaper items as committed: Don’t
TO

6.
DA
Y

put off Kaizen until tomorrow.

7. Do Kaizen by adopting ideas of workers: Put yourself in the

worker’s position.....The ideas of 10 people are better than the knowledge of one.

8. VS.
Do Kaizen without spending lots of money: Many small
improvements add up to big results..... Implement quickly with less risk.

9. MU
DA Don’t overlook even the smallest waste (Muda):
Ask ”why?” five times..... Many small improvements add up to big results...
MUDA
Implement quickly with less risk.... Increased opportunity and
frequency to learn.
MT WT F

10. Document results on Target Progress Report: Document and

Report Results at Regular Report Outs. fill in the condition even if there has
been no change.

Do Kaizen HONESTLY with the spirit of “ Yes, I will try! “ Yoshio Oba
The Next Step Is…

…To Understand and Do It

The way of packing oranges
in Japan
Orange Packing (1)
It is difficult to open a net and put
oranges in the net at the same time.

I need
help.

Productivity: 1 net per min.

Orange Packing (2)
Cooperation increases a work efficiency.

Productivity: 5 nets per min.

A selection of better means or a
change of current method for
achieving an objective.

Can you think of a better

method to pack oranges?

Productivity: 10 nets per min.

1
 When a waitress served a glass of water,
she placed the glass strongly on the table.
Hold the glass with care.
Place the glass with care.
Treat customers from your heart.
Change the way of
holding the glass

Hold the bottom of the glass.

Support the glass with a little finger.
Touch the little finger to the table.

2
 Do not give customers
uncomfortable feelings!
When you hang up the telephone, put it
smoothly with an appreciation to the
customer.
Since the customer pays your salary,
hang up your telephone receiver politely.
You must teach a way of accomplishing
the job.
Telephone
 KAIZEN
- Quality Control Circles
- Suggestion System
- Just-in-time
- TQC (Total Quality Control)
- Total Productive
maintenance
- 5 S Kaizen
The Kaizen Umbrella
- Cooperative Labor-
Management relationship
- Small-group activities
- Productivity Improvement
- Quality Improvement
- New product development
- Zero Defect (ZD)
 When a waitress served a glass of water,
she placed the glass strongly on the table.
Hold the glass with care.
Place the glass with care.
Treat customers from your heart.
Change the way of
holding the glass

Hold the bottom of the glass.

Support the glass with a little finger.
Touch the little finger to the table.

2
KAIZEN Steps
- Abolition
- Discontinuance
- Exclusion
- Removal

- Simplification
- Centralization
- Synchronization
- Standardization
- Management for exceptions
- Integration
- Combination

- Alternation
- Exchange
- Conversion
- Diversification
- Separation
4
Elimination Remove this
sliding door

What is the use of the sliding

doors?
KAIZEN by “Elimination”
Why are shoes box doors needed?

Before After
1
 KAIZEN by “Elimination”
No sleeves down-jacket is easy to work.

Before

1
After
Reduce A fluorescent light
bulb was removed.

The number of fluorescent light

were reduced.
KAIZEN by “Reduction”
Are two bricks needed
to stop a car?

Before
Parking Lot
KAIZEN by “Reduction”
One brick is enough
to stop a car.

Before

After 1
Zebra Zone

1
KAIZEN by “Reduction”
Side lines of
the zebra zone
are removed.

Before

After
1
KAIZEN by “Reduction”
A brush part of the toothbrush is
not necessarily long.

Before After
1
 Change

By watching the ribbon movement,

one can recognize that the air
conditioner is working.
KAIZEN by “Change”
The hollow about the key hole
smoothes the key movement.

Before After
1
KAIZEN by “Change”
To oil the pan, a small teapot is
more convenient than a ladle.

Before After
1
 KAIZEN by “Change”
Stairways at the railway station
should have signs of up and down.

Before After
1
At JR Kurume Station
Rush Hour
 KAIZEN by “Change”
The shape of the handing strap
fits the hand.

Before After 1
Hanging Straps
in trains
Hanging strap in
Hong Kong
subways

to Suggestion System
Contents
 Objective: Read the gauge to
keep the liquid level constant.

Exercise (1)
Exercise (2)
Exercise (3)
Exercise (4)
Exercise (5)
Exercise (6)
Exercise (7)
 Suggestion System
You suggest your ideas, and I will
examine them and implement some
of your ideas later.
Suggestion System
Concept

Reward

Idea

Idea
 KAIZEN System
Implemented ideas must be submitted

N
AIZE
K eet
sh
 Suggestion System
Workers’
responsibility Management responsibility

Workers’ responsibility Management

responsibility

KAIZEN System
Difference (1)
 Suggestion system
Propose improvement ideas for
any activity in the company.

KAIZEN system
Propose only improvement ideas
which will improve your own work.

Difference (2)
KAIZEN
1
Memo
AOTS Kaizen
KAIZEN
AOTS KAIZEN
 Different styles of change
1. Small change --- By individual effort, a better
way of proceeding a job is
(KAIZEN) considered. (Idea creation)

2. Medium change --- By group effort, a better way

is proposed by following
(Small group predetermined steps (or rule).
activities)
3. Big change --- By investments in new technology
or equipment, dramatic alterations
(Innovation) are achieved.
2
THANK YOU