20130619 kaizen final


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Kaizen is a system of continuous improvement in quality, technology, processes, company culture, productivity, safety and leadership.

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20130619 kaizen final

  1. 1. Presentation Topic :KAIZEN SIOM | Symbiosis Institute of Operations Management
  2. 2. Decoding KAIZEN  Japanese Terminology. Change for Better. SIOM | Symbiosis Institute of Operations Management
  3. 3. Concept of Kaizen • People who perform the task are most knowledgeable about that process. • It must be achieved with 100% participation. • This team work encourages innovation and change. • Helps break barriers and makes room for continuous improvement. • Focuses upon Small but Continual Improvement. • Approach towards higher standards in Quality enhancement and Waste reduction.SIOM | Symbiosis Institute of Operations Management
  4. 4. Three Pillars of Kaizen HOUSEKEEPING WASTE ELIMINATION i.e. MUDA STANDARDIZATION SIOM | Symbiosis Institute of Operations Management
  5. 5. 1. HOUSEKEEPING  The following can be employed using the 5S methodology 5s includes  Seiri (Sort)  Seiton (Set in Order)  Seiso(Shine)  Seiketsu (Standardize)  Shitsuke (Sustain). SIOM | Symbiosis Institute of Operations Management
  6. 6. 2. WASTE ELIMINATION (MUDA)  There are seven types of wastes which are classified as:  Muda of overproduction.  Muda of inventory.  Muda of defects (repair or rejects).  Muda of motion.  Muda of processing.  Muda of waiting.  Muda of transportation SIOM | Symbiosis Institute of Operations Management
  7. 7. 3. STANDARDIZATION i.e. PDCA Cycle • PLAN : Identifying & Analyzing the problem. • DO : Developing and Testing a Potential solution. • CHECK : Study and Compare the results. • ACT : Implementing the Improved solution fully. SIOM | Symbiosis Institute of Operations Management
  8. 8. Elements of Kaizen  Kaizen comprises of five basic elements:  Teamwork  Personal discipline  Improved morale and employee satisfaction  Quality circles  Suggestion for Improvement SIOM | Symbiosis Institute of Operations Management
  9. 9. Kaizen culture  Creating a synergy between Management and the shop floor / operations team  The CEO must spearhead Kaizen initiative.  Management must commit required funds, time and other resources for all employees right from grass root levels to top.  Mapping results to processes  Processes are required to be set up to give a vivid picture to organizational members whether results of a particular Kaizen initiative can be directly attributed to that initiative.  Brainstorming  Organizational members need to brainstorm ideas and then implement outcome of such brainstorming sessions so that everyone is able to see the problem and try solutions. SIOM | Symbiosis Institute of Operations Management
  10. 10. Embedding Kaizen Culture Establish the champion Establish a governing committee Start communication boards and newsletters Regularly track Kaizen activities on a dash board SIOM | Symbiosis Institute of Operations Management
  11. 11. SIOM | Symbiosis Institute of Operations Management
  12. 12. Benefits of Kaizen  Kaizen involves every employee in making change in most cases small, incremental changes  It focuses on identifying problems at their source, solving them at their source, and changing standards to ensure the problem stays solved  Kaizen reduces waste in areas such as inventory, waiting times, transportation, worker motion, employee skills, over production, excess quality and in processes  Kaizen Improves space utilization, product quality, use of capital, communications, production capacity and employee retention  Kaizen Provides immediate results. Instead of focusing on large, capital intensive improvements, Kaizen focuses on creative investments that continually solve large numbers of small problems. SIOM | Symbiosis Institute of Operations Management
  13. 13. Drawbacks of Kaizen  It’s not a programmed approach but a philosophical approach.  It doesn’t encourage radical changes but a gradual change over a long period of time.  It requires continuous monitoring ,supervision and mentoring to maintain the spirit of kaizen.  It works well when the average age of employees is low. SIOM | Symbiosis Institute of Operations Management
  14. 14. Companies adopting Kaizen  GSK NASHIK 1. Corrective and preventive actions (CAPA) are formed. 2. GEMBA is carried out in the form of miniature audits. 3. Current issues and suggestions from the shop floor and other departments are considered. 4. This is done in such a way that daily day to day activities are not affected. 5. GSK is formulating a system called Glaxo Production Management (GPM) system in lines with Toyota Production Management (TPM) system. SIOM | Symbiosis Institute of Operations Management
  15. 15. Companies adopting Kaizen  FIDELITY INVESTMENTS 1. Fidelity Investments is the largest and best-known mutual fund manager in the United States. 2. Fidelity's commitment to Kaizen is reflected in its performance management and compensation systems. 3. Each fall, Fidelity companies establish business goals which are tiered through the company's various divisions down to the individual managerial level. 4. Progress towards goals is evaluated and adjusted on a monthly and quarterly basis. SIOM | Symbiosis Institute of Operations Management