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Characteristics of
Japanese Production Systems
What is Industry ?
      Input                       Output

                      Industry



Man-power                        Products
Machines                         Services
 Materials
 Methods Technology
           Skill

  (4M’s)
                                            KM 2
Evaluation of the output ?
                 Q, C, D

   Input                               Output

                  Industry

   Q: Quality

   C: Cost
                             KAIZEN
   D: Delivery                action



                                                KM 3
KAIZEN is a feedback
  Input                          Output

            Industry



                       KAIZEN
                        action




KAIZEN is a corrective action
                                          KM 4
Productivity: 1 net per min.
                               KM 5
KM 6
Productivity: 5 nets per min.   with 2 workers
                                                 KM 7
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?




                                 KM 8
Productivity: 5 nets per min.   with 1 worker   KM 9
KAIZEN is
a continuous improvement

 Continuous = again and again



                                KM 10
Suggestion System
vs.
KAIZEN Suggestion System




                           KM 11
Suggestion System
You suggest your ideas, and I will examine
 them and implement some of your ideas
                  later.




                                         KM 12
Suggestion System Concept




                            KM 13
KAIZEN Suggestion System
 Implemented KAIZEN ideas must be
 submitted




                                    KM 14
Suggestion System
  Workers’
responsibility                 Management responsibility

                        Idea
                      generation



                 Workers’ responsibility              Management
                                                      responsibility


     KAIZEN Suggestion System
                                                               KM 15
Suggestion System
Propose improvement ideas for any
       activity in the company.



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

                                    KM 16
KAIZEN Memo   KM 17
                      1
AOTS KAIZEN




              KM 18
Reward

         For an excellent KAIZEN, a large amount of reward is
         given (5000 yen, 10000 yen, 50000 yen)




                                                                KM 19
Award Payment for Each KAIZEN
Suggestion (2008)

                      0             50        100         150          200

                 0         18
               1-99            24
            100-299                                 110
Jpn Yen




            300-499                                 109
            500-999                                              163
          1000-2999                      83
          3000-4999       11
                                               Average 385 yen
             5000+        10


                                              Surveyed 528 companies

                                                                             KM 20
2008
Among (527) companies,


   Employees who suggested at lease one idea

           Total number of employees




                     74.4%
             Implemented suggestions

                     All suggestions




            88.7%                                     KM 21   1
Different styles of change
1. Small change      --- By individual effort, a better way
                         of proceeding a job is considered.
    (KAIZEN)             (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 are
   (Innovation)       achieved.
                                                               2
                                                       KM 22
Process
Change




          Tomato Juice   KM 23
Tomato Juice




                            Process     Material

                            Change      Change




               Input                               Output

                            Industry
               Man-power
               Machines
                Materials
                Methods                KAIZEN
                                        action
                 (4M’s)
                                                                    2
                                                            KM 24
Two Attitudes




    Management     Breakthrough


      Staff

    Floor people              Status quo



                                           KM 25
Japanese firms

Management


Staff

Floor people


               Non-Japanese firms

Management


Staff

Floor people

                                    KM 26
KAIZEN is a Japanese word.




                             Contents
Definition of KAIZEN
1. better method for achieving
   an objective.


2. An accumulation of small changes.
                             Bricks
                                 Bricks

3. A corrective action
                 under constraints.
Kaizen Objectives
  Quality
  Cost
  Delivery
  (QCD)
5 S for Kaizen
1.   Simple
2.   Small
3.   Smooth
4.   Slim
5.   Smart
Kaizen PQCDSEM
 P-Productivity
 Q-Quality
 C-Cost
 D- Delivery
 S-Safety
 E-Environment
 M-Moral
Raise the
          Lower the   table
          table




A corrective action under constraints
You cannot change the table
height.
After KAIZEN


           Easy to
           work.




         Footstool   1
You must open 3 doors to start KAIZEN
(Problem
Identification)




                                            Implementation




                                  Problem solving
                                  (Idea generation)          3
KAIZEN by “Elimination”
Why are shoe box doors needed?




       Before            After   1
KAIZEN by “Elimination”
Why are shoe box doors needed?




       Before            After   1
KAIZEN by “Reduction”




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

  Before




                   After
                                 1
KAIZEN by “Change”




  Before
                     1
KAIZEN by “Change”
The hollow about the key hole
smoothes the key movement.




     Before              After
                                 1
Thank You

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