KAIZENThe Key to Japan’s Competitive SuccessBy MASAAKI IMAI// YIS//062709//

TABLE OF CONTENTS1. KAIZEN, The Concept2. Improvement East and West3. KAIZEN by Total Quality Control4. KAIZEN, The Practice5. KAIZEN Management6. The KAIZEN Approach to Problem Solving7. Changing the Corporate Culture// YIS//062709//

CHAPTER IKAIZENThe Concept// YIS//062709//

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KaiZeN Kamban Quality improvement Just in Time Zero defects Small-group activities Cooperative labor – management relations Productivity improvement New-product development Customer orientation TQC Robotics QC circles Suggestion system Automation Discipline in the workplace TPM// YIS//062709//

Kamban

Quality improvement

Just in Time

Zero defects

Small-group activities

Cooperative labor – management relations

Productivity improvement

New-product development

Customer orientation

TQC

Robotics

QC circles

Suggestion system

Automation

Discipline in the workplace

TPM

JOBS FUNCTION PERCEPTIONS// YIS//062709//Japanese perceptionsWestern perceptionsTop managementMiddle managementSupervisorsInnovationInnovationWorkersKAIZENMaintenanceMaintenance

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Deming Wheel// YIS//062709//

// YIS//062709//Three Award in Sumo Tournament ; An outstanding performance award A skill award A fighting spirit awardFocus more on processRather than result !!!

An outstanding performance award

A skill award

A fighting spirit award

CHAPTER IIImprovement East & West// YIS//062709//

KAIZENContinuous ImprovementINNOVATIONBreakthroughKAIZENInnovation

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// YIS//062709//InnovationStandardActualMaintenanceKAIZENPATTERNActualStandardStandardActualMaintenanceKAIZENInnovationActualStandardInnovationTimeTimeInnovation + Kaizen

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// YIS//062709//Upcoming Japanese product perceptionsTechnology LevelPreferred ProcessProductHigh TechnologyTechnology oriented innovationInnovative product with Kaizen orientationTechnology oriented KAIZENLow TechnologyPeople oriented KAIZENKaizen oriented product

CHAPTER IIIKAIZEN by TOTAL QUALITY CONTROL (TQC)

13579246810Quality control deals with the Quality of peopleSpeaks with dataQuality first, not Profit firstManage the previous process ( Upstream)The next process is the customerCustomer oriented TQC, not manufacturer oriented TQCTQC starts with training and ends with trainingCross Functional Management to Facilitate KaizenFollow PDCA cycles// YIS//062709//Standardize the results

1. Quality assurance2. Cost reductionTQC3. Meeting production quota4. Meeting delivery schedule5. Safety6. New-product development7. Productivity improvement8. Supplier managementTQC// YIS//062709//

ACTPLANCHECKDO// YIS//062709//

// YIS//062709//4M checklist

CHAPTER IVKAIZEN the PRACTICE

// YIS//062709//MANUFACTURING OBJECTIVES

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// YIS//062709//BACDESeitonSeiriSeiso5sShitsukeSeiketsu

Waste of REJECTSWaste in WIPWaste in DESIGNdeliverycostqualityNINE WASTES !!productWaste in FIRST PHASE OF PRODUCTIONMethod / systemresourcesmoneyfacilitiesmanpowerWaste in EXPENSESWaste in FACILITIESWaste in MANPOWERWaste in MANAGEMENTWaste in MOTION// YIS//062709//

// YIS//062709//Shortened lead timeReduced time spent on non-process workReduced inventoryJITBetter balance between different processesProblem clarification

// YIS//062709//Top management responsibility :Strategy & PlanningAdministration responsibility:Provide support

Time100%Involvement50%0%Idea DevelopmentDesignDevelopmentModelDevelopmentTrial runs & customer appraisalFinal product designTools & machineryProcess controlProductionPRODUCT DEVELOPMENT PHASE AT IDEAL COMPANY

CHAPTER VKAIZEN MANAGEMENT

// YIS//062709//Management & Labor ; Enemies or Allies?CooperationWorking together to bake bigger pieConfrontationfighting over how to divide the pie

Manager's first job is to learn to communicate with his employees so both workers and the company can achieve their common goal Union leader who cannot understand financial statement and analyze the company's performancewill not be able to negotiate with management on such labor-related subjects as technological innovation, personnel transfers, and scrapping facilities

// YIS//062709//MANAGEMENT & LABOR RELATIONConfrontationFormal & Organization orientedInformal & Individual orientedCooperation

// YIS//062709//Job potential If management is not flexibleCalls for management initiativesIncome potential-+Job allocation if labor is flexibleCalls for labor initiativesJob allocationIf labor is not flexibleJob potential if management is flexibleLABOR RESPONSE

General statement of direction for change (qualitative )Top managementDefinition of top management statement(quantitative)Division ManagementSpecific goals(quantitative)Middle ManagementSpecific actions(quantitative)SupervisorsPOLICY DEPLOYMENT

CHAPTER VIThe KAIZEN APPROACHto PROBLEM SOLVING

// YIS//062709//When there is no problem , there is no potential for improvementsKAIZEN starts with a problem, more precisely the recognition that a problem exists

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// YIS//062709//VELOCITY FOR COMPETITIVE ADVANTAGEStandardization Process optimization Elimination of waste Evolution in people and technique Durable training

// YIS//062709//CUTTING CHANGE OVER TIMEForm a team & allocate responsibilities7. Set-up board for visualization & monitoring2. Measure current stateSeven Steps6. Analysis & improvement3. Analysis & improvement5. Set process with new scenario4. Apply first improvement

CHAPTER VICHANGING the CORPORATE CULTURE

// YIS//062709//213The costumer : The ultimate Judge of qualityThe eye of the needle – struggle to enter the marketSupplier relations“We call some societies primitive because of their desire to remain in the same state and in unchanging standard of living – as their gods or ancestors created them at the beginning of time”4Changing Corporate culture : Challenge to the west

Anticipate Business Fluctuation

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// YIS//062709//getting workers' acceptance and overcoming their resistance to change. Constant effort to improve industrial relationsEmphasis on training & education of workersDeveloping informal leaders among the workersFormation of Small Group Activities such as QC circlesSupport & recognition for workers’ KAIZEN effort“Creating a Cooperative atmosphere and corporate culture”Conscious effort for making the workplace a place where Workers can pursue life goalsBringing social life into the workshop as much as practicalTraining supervisor so that they can communicate better& create a more positive involvement with workersBringing discipline to the workshop

// YIS//062709//KAIZEN PHILOSOPHY“Be it our working life, our social life, or our home life, deserves to be constantly improved”