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Mr. yasser mostafa kaizen the key to japan’s competitive success

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  • 1. Kaizen The Key to Japan‟s Competitive SuccessPresented By:Dr. Yasser MostafaQA Manager – Al Yasra Food Co.
  • 2. Speaker Profile:Dr. Yasser Mostafa ◦ Certified Quality Manager – ASQ ◦ LA ISO 9001, 14001 & 22000 ◦ Member in Kaizen Institute – Egypt ◦ B. Sc. in Veterinary Medicine from Cairo University. ◦ Over more than 12 years, with accumulated experience in quality field in Egypt, Saudi Arabia and Kuwait. ◦ Currently he is Quality Assurance Manager in Al Yasra Food Co. ◦ Member International Register of Certificated Auditors (IRCA) ◦ Member in American Society For Quality (ASQ) ◦ Member in Egyptian Society For Quality (ESQ)
  • 3. Contents: 1. KAIZEN, The Concept 2. Improvement East and West 3. KAIZEN by Total Quality Control 4. KAIZEN, The Practice 5. KAIZEN Management 6. The KAIZEN Approach to Problem Solving 7. Changing the Corporate Culture
  • 4. What is KAIZEN?Kaizen translated literally means Change for Good.  Kai – to take apart; to change Zen – „good‟  Kaizen: to take apart and change for good
  • 5. Masaaki Imai-known as the developer ofKaizenKaizen originated in Japan in 1950First, it was been introduced andapplied by Imai in 1986 to improveefficiency, productivity andcompetitiveness in Toyota“If you learn only one word ofJapanese, make it KAIZEN.” Masaaki Imai
  • 6. Introduction It is a planned and controlled change to achieve the next step in continual improvement It moves you from the existing Current State toward the defined Future State you have established as your goal. Kaizen is a process of continuous incremental improvement. The “kaizen blitz” is a five-day continuous improvement activity focused on a very specific process. True Kaizens are typically done as a focused „blitz‟: A point in time team effort rather than a gradual metamorphosis over time.
  • 7. Why Kaizen Events? Future Current Kaizen State State (Lean)Kaizen drives the improvements which lead to a leaner business operating system
  • 8. Two elements of KAIZENThere are two elements that construct KAIZEN: Improvement/Change for the better Ongoing/Continuity/MaintenanceLacking one of those elements would not beconsidered KAIZEN.The philosophy of Kaizen has kindled considerableinterest among researchers because it increasesproductivity of the company and helps to producehigh-quality products with minimum efforts.
  • 9. Kaizen Philosophy Kaizen, also known as continuous improvement, is a long-term approach to work that systematically seeks to achieve small, incremental changes in processes in order to improve efficiency and quality. Kaizen can be applied to any kind of work, but it is perhaps best known for being used in lean manufacturing and lean programming. If a work environment practices kaizen, continuous improvement is the responsibility of every worker, not just a selected few.
  • 10. Kaizen Philosophy Kaizen can be roughly translated from Japanese to mean "good change." The philosophy behind kaizen is often credited to Dr. W. Edwards Deming. Dr. Deming was invited by Japanese industrial leaders and engineers to help rebuild Japan after World War II. He was honored for his contributions by Emperor Hirohito and the Japanese Union of Scientists and Engineers.
  • 11. What is Kaizen Events? Evaluate Implement Plan and Design Assess/ReassessKaizen activities that address issues over a period of one week hadbecome the industry norm and they had been named as „Kaizenevents‟. These small models are used to understand problems andissues in the business processes, arrive at solutions, and applythem to improve the processes and eliminate wastes.
  • 12. Five Main Areas of Kaizen  Teamwork (Most Important)  Personal discipline  Improved morale  Quality circles  Suggestions for improvement
  • 13. Who are Stakeholders – Whobenefit from Kaizen?The principal stakeholders ofKaizen philosophy are: Employees of the organization. Top level management last level worker in the company. External stakeholders like vendors, customers, and Shareholders.
  • 14. The Kaizen Umbrella Customer orientation  Kamban TQC (total quality  Quality improvement control)  Just-in-time Robotics  Zero defects QC circles  Small-group activities Suggestion system Automation  Cooperative labor- Discipline in the management relations workplace  Productivity TPM (Total Productive improvement Maintenance)  New-product development
  • 15. Benefits of KAIZEN Reduces waste- like inventory waste, time waste, workers motion. Improves space utilization, product quality Results in higher employee morale and job satisfaction, lower turn-over. Widely acceptable-can be used in both manufacturing and non-manufacturing environments, for processes as well as people. Highly effective and success-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
  • 16. Pitfalls in KAIZEN Resistance to change Lack of proper procedure to implement Too much suggestion may lead to confusion and time wastage
  • 17. Easy Kaizen Flow1 START 2 3 Establish existence Develop problem Identify problem of problem statement END 7 4Document/Standardize Formulate solution(s) improvements 6 5 Evaluate results Implement solution(s)
  • 18. Kaizen, The Concept
  • 19. Jobs Function Perceptions Japanese Western perceptionsperceptions Top management Middle management Supervisors Workers
  • 20. Middle Top Management & Supervisors WorkersManagement StaffDetermine to introduce Use Kaizen in functionalKaizen as a corporate Deploy and implement rules Engage in Kaizen strategy Kaizen goals as through the suggestion directed by top system and small management through Formulate plans for group activities policy deployment and Kaizen and provide Provide support and cross functional guidance for workersdirection for Kaizen by management allocating resources Practice discipline in Improve the workshop Use Kaizen in functional communication with Establish policy for capabilities workers and sustain Kaizen and cross high morale functional goals Establish, maintain, and upgrade standard Engage in continuous Support small group self-development to activities (such as become better problem Realize Kaizen goals quality circles) and the solvers through policy Make employees Kaizen-concious individual suggestiondeployment and audits system through intensive training programs Introduce discipline in Build system, the workshop procedures, and Help employees Enhance skills and jobstructures conducive to develop skills and tools performance expertise Kaizen for problem solving Provide Kaizen with cross education suggestions // YIS//062709//
  • 21. Deming Wheel DesignResearch Production Plan Act PDCA Do Sales Check
  • 22. Continuous ImprovementKAIZEN INNOVAT ION BreakthroughScience Technology Design Production Market Innovation KAIZEN
  • 23. 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, individual Approach ideas & effortsgroup efforts, systems approach
  • 24. KAIZEN 2 INNOVATION Maintenance & Scrap Mode Improvement & RebuildConventional know-how & state of Technological breakthroughs, 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
  • 25. INNOVATION KAIZEN Creativity Adaptability Individualism Teamwork (system approach) Specialist oriented Generalist-oriented Attention to great leaps Attention to details Technology oriented People orientedInformation: closed, proprietary Information: open, sharedFunctional (specialist) orientation Cross functional orientation Seek new technology Build on existing technology Line + staff Cross functional organization Limited feedback Comprehensive feedback
  • 26. Upcoming Japanese product perceptionsTechnology Level Preferred Process Product Innovative product High Technology oriented with Kaizen Technology innovation orientation Technology oriented KAIZEN People oriented Kaizen orientedLow Technology KAIZEN product
  • 27. Kaizen by Total Quality Control(TQC)“The Kaizen philosophy assures that our way of life, or our home life,deserves to be constantly improved” - Masaaki Imai
  • 28. 1 Quality control deals with the Quality of people2 Speaks with data3 Quality first, not Profit first4 Manage the previous process ( Upstream)5 The next process is the customer6 Customer oriented TQC, not manufacturer oriented TQC7 TQC starts with training and ends with training8 Cross Functional Management to Facilitate Kaizen9 Follow PDCA cycles10 Standardize the results
  • 29. 1. Quality assuranceTQC 2. Cost reduction 3. Meeting production quota 4. Meeting delivery schedule 5. Safety 6. New-product development 7. Productivity improvement 8. Supplier management TQC
  • 30. Manpower Technique Method Time Muda (Waste) Facilities Muri (Strain) Jigs and toolsMura (Discrepancy) Materials Production volume Inventory Place Way of thinking
  • 31. ACT PLAN Standardiz Definitions ation of problemCHECK Confirmation Analysis of of results problem Identificati Implement on of ation causes Planning DO counter- measures
  • 32. Kaizen The Practice
  • 33. Maintain a questioning & Use tools & Achieve open-minded facilitates to maximum Maintain attitude for Eliminate hard maximizequality with minimum constant work quality & maximum inventory improvement efficiency & efficiency based on minimize effort teamwork & cooperation
  • 34. 5 S Concept: Seiton Straightening Out B Seiri A C SeisoSorting Cleaning Up 5sShitsuke E D SeiketsuSustaining the StandardizingPractice
  • 35. Waste of Waste in Waste in REJECTS DESIGN WIP quality cost deliveryNINEWASTES !! product Waste in Method / system FIRST PHASE OF PRODUCTION resources manpower facilities money Waste in Waste in Waste in Waste in Waste in MOTION MANAGEMENT MANPOWER FACILITIES EXPENSES // YIS//062709//
  • 36. Shortened lead time Reduced time spent on non-process work Reduced inventoryJIT Better balance between different processes Problem clarification
  • 37. Design Product planningTop Administrationmanagement responsibility:responsibility :Strategy & QCS Production preparation Provide supportPlanning Marketing Production & Purchasing
  • 38. Kaizen Management
  • 39. Management & Labor ; Enemies or Allies? Cooperation Working together to bake bigger pie Confrontationfighting over how to divide the pie
  • 40. Managers first job is to learn to communicate with hisemployees so both workers and the company can achieve their common 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
  • 41. The Kaizen Approach to ProblemSolving
  • 42. When there is no problem , there is no potential for improvementsKAIZEN starts with a problem,more precisely therecognition that aproblem exists
  • 43. 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
  • 44. Who What Where When Why How Who does it? What to do? Where to do it? When to do it? Why does he do it? How to do 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 Is there any other should it be Why do it that way? do it? done? should it be done? 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?
  • 45. VELOCITY FOR COMPETITIVE ADVANTAGEStandardizationProcess optimizationElimination of wasteEvolution in people and techniqueDurable training
  • 46. CUTTING CHANGE 1. Form a team & allocate OVER TIME responsibilities 7. Set-up board for visualization & 2. Measure monitoring current state Seven6. Analysis & Stepsimprovem 3. Analysis &ent improvement 5. Set process 4. Apply first with new improvement scenario
  • 47. Kaizen Costing Concept
  • 48. Kaizen Costing Concept Target Costing is a process, Ensuring that the products are designed in such a way that the company can sell them cheaply & still make a fair profit. Kaizen costing focuses on the value & profitability of the manufacturing phase, both of new & existing products. Kaizen costing activities should be a part of a process of business improvement continuously, with improvements in quality, product functionality and service jointly.
  • 49. Kaizen – Changing theCorporate Culture“A never-ending journey”
  • 50. The customer : 1 The ultimate Judge of quality The eye of the needle – 2 struggle to enter the market Supplier relations 3 Changing Corporate culture : 4 Challenge to the west“We call some societies primitivebecause of their desire to remain in thesame state and in unchanging standardof living – as their ancestors createdthem at the beginning of time”
  • 51. Establishing better Developing additional criteria to measure supply sources that optimum inventory can ensure faster levels deliveryBUY(Outsidecontactors) Improving the quality Improving how orders MAKE are placed of information provided to suppliers (part time /contract employee) Establishing better Understanding the physical distribution suppliers internal system requirements better
  • 52. Companies applying KaizenPharmaceutical Industry: Food and Beverages IndustryBoehringer Ingelheim NestléSanofi Aventis UnileverPfizer Financial Services Cadbury SchweppesSchwarz Societe Generale BongrainMerckUnilabs National Australia Bank/Bank ofSadia TchiboZydus Cadila New Zealand N.M. Rothschild Bacardi Europcar Lease Services Pernod Ricard Commonwealth Bank Brown Forman Adelaide Bank Hochland St.George BankHealthcare Public SectorIndependent Hospitals of Australia Government of the United ArabHospital General de Santo Antonio EmiratesCalgary Laboratory Services Government of MauritiusMayo Clinic Government of KenyaDanbury General Hospital Government of IndiaOwensboro Medical Health System
  • 53. 7 Principles of ToyotaProduction System (TPS)1. Reduced Setup Times2. Small-Lot Production3. Employee Involvement and Empowerment4. Quality at the Source5. Equipment Maintenance6. Pull Production7. Supplier Involvement
  • 54. Statements on KAIZEN“The starting point for improvement is to recognise the need. This comes from recognition of a problem. If no problem is recognized, there is no recognition of the need for improvement. Complacency is the arch-enemy of Kaizen. Therefore, Kaizen emphasizes problem-awareness and provides clues for identifying problems.” Masaki Imai“Improve constantly and forever the system of production and service. Improvement is not a one time effort. Management is obligated to continually look for ways to reduce waste and improve quality.” W. Edwards Deming (philosophy of quality control)“The Kaizen philosophy assures that our way of life, or our home life, deserves to be constantly improved” - Masaaki ImaiWant a Kaizen Culture? Take You Vitamin C!Kaizen Principle: Be like MacGyver, use creativity before capital!
  • 55. Conventional Japanese Wisdom RevolutionsHigher quality leads to Higher quality leads to higher costs lower costsLarger lots lead to lower Smaller lots lead to costs lower costsWorkers do not need to A thinking worker is abe taken into account productive worker
  • 56. KAIZEN PHILOSOPHY“Be it our working life, our sociallife, or our home life, deserves tobe constantly improved”
  • 57. Good is never good enough,kaizen is a never-ending journey to excellence. Thanks