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 Toyota’s 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 Japans Competitive Success.
Three Award in Sumo Tournament ; - An outstanding performance award - A skill award - A fighting spirit awardFocus more on process Rather than result !!!
KAIZEN 1 INNOVATION Long term Short term Effect Un-dramatic Dramatic Small steps Pace Big steps Time Intermittent &Continuous & incremental frame non incremental Gradual & consistent Change Abrupt & volatile Everybody Involvement “Champion” Collectivism, Rugged individualism, group efforts, systems Approach individual ideas & efforts approach // YIS//062709//
KAIZEN 2 INNOVATION Maintenance & Scrap Mode Improvement & RebuildConventional know-how & Technological breakthroughs, state of the art Spark new inventions, new theories Little investment Practical Large investment Great effort to maintain Requirements Little effort to maintain Effort People Technology orientation Process & efforts for Evaluation Results for profits better results criteria Economic Slow growth economy Fast growth economy condition // YIS//062709//
Standard Maintenance Innovation Actual Standard MaintenanceInnovation Actual Time Actual KAIZEN StandardInnovation + Kaizen Actual KAIZEN Innovation 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.
Management & Labor ;Enemies or Allies? Cooperation Working together to bake bigger pie Confrontationfighting over how to divide the pie
JOBS FUNCTION PERCEPTIONSJapanese perceptions Western perceptions Top management Middle management Supervisors Workers
Middle Top Management Supervisors WorkersManagement and Staff Determine to Use Kaizen in Deploy and Engage in Kaizenintroduce Kaizen as functional rules implement Kaizen through thea corporate strategy goals as directed by suggestion system top management Formulate plans for and small group through policy Kaizen and provide activitiesProvide support and deployment and guidance for workersdirection for Kaizen cross functional by allocating management resources Practice discipline in Improve the workshop Use Kaizen in communication with Establish policy for functional capabilities workers and sustain Kaizen and cross high morale functional goals Engage in Establish, maintain, and upgrade standard Support small group continuous self- activities (such as development toRealize Kaizen goals quality circles) and become better through policy Make employees the individual problem solvers deployment and Kaizen-concious audits through intensive suggestion system training programs Introduce discipline in Build system, Help employees the workshop Enhance skills and procedures, and develop skills and job performancestructures conducive tools for problem expertise with cross Provide Kaizen to Kaizen solving education suggestions // YIS//062709//
Managers first job is to learn to communicate with hisemployees so both workers and the company can achieve theircommon goal Union leader who cannot understand financial statement and analyze the companys performance will not be able to negotiate with management on such labor- related 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 improvementsKAIZEN starts with a problem,more precisely therecognition that aproblem exists
Seven Statistical tools New Seven tools• Pareto diagrams • Relations diagram• Cause & Effect diagram • Affinity diagram• Histograms • Tree diagram• Control charts • Matrix diagram• Scatter diagram • Matrix data-analysis diagram• Graphs • PDPC (Process Decision Program Chart)• Check-sheets • Arrow Diagram // YIS//062709//
VELOCITY FOR COMPETITIVE ADVANTAGEStandardizationProcess optimizationElimination of wasteEvolution in people and techniqueDurable training // YIS//062709//
Who What Where When Why How Why does he do Who does it? What to do? Where to do it? When to do it? How to do it? it? Where is itWho is doing it? What is being done? When is it done? Why do it? How to do it? done?Who should be What should be Where should When should How should it be Why do it there? doing it? done? It be done? it be done? done? Can this methodWho else can do What else can be Where else can What other time Why do it then? be used in other it? done? it be done? can it be done? areas? Where elseWho else should What else should be What other time Why do it that Is there any other should it be do it? done? should it be done? way? way to do it? done? Where are 3- Are there any 3- Are there anyWho is doing 3- What 3-Mus are Are there any time Mus being Mus in the way of 3-MUs in the Mus? being done? 3-Mus ? done? thinking? method?
Shortened lead time Reduced time spent on non-process work Reduced inventoryJIT Better balance between different processes Problem clarification
CHANGINGthe 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 and profitability improved in long-term.
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 sociallife, or our home life, deserves to be constantly improved” // YIS//062709//