3. KAIZEN
Contents of the Kaizen resource guide by Graphic Products, Inc.
ORIGIN.............................................................................. pg 1
Origin of Kaizen
WESTERN PHILOSOPHIES............................................. pg 2
.
Traditional Western Business Practices
-- Common Western Philosophies
KAIZEN PHILOSPHIES.................................................... pg 4
Kaizen is Different
-- Basic Kaizen Philosophies
pg
1
BENEFITS......................................................................... pg 5
Benefits & Application of Kaizen
-- Success Stories
-- Application Elements
-- Ranking
-- Establishing Procedures
-- Incentives & Rewards
-- Customer Focus
Origin of Kaizen
SUSTAINING.................................................................. pg 11
Standardizing & Sustaining Kaizen
-- Integration
-- Issue Resolution
-- Kaizen Leaders
pg
11
Issue Resolution
TORO Kaizen Kit
available from
DuraLabel
See page 3
The information presented in this guide was obtained from sources whom we deem reliable; Graphic Products, Inc. has made every effort to ensure this
information is correct. However, we do not guarantee accuracy or completeness. Graphic Products, Inc. makes no representations or warranties of any kind,
express or implied. Information in this guide is subject to change without notice. Except as expressly provided for in writing, the liability of Graphic Products, Inc.
arising from the use of this guide is specifically excluded and Graphic Products, Inc. disclaims all warranties and any liability for damages of any kind and any
liability, whether in contract, tort under statute or otherwise, for any injury, damage or loss whatsoever. No reliance should be placed on information contained
in, implied by or inferred from this guide. Users of this guide should verify all information with ANSI and OSHA sources directly.
5. Origin
ORIGIN OF KAIZEN
Since the start of the industrial revolution, managers of facilities have spent a great deal of time looking for new ways to improve
production and decrease costs. For more than 30 years, Kaizen has been a popular and successful management philosophy used to
help facilities attain efficiency and production goals.
Kaizen was first developed in Japan just after WWII.
The literal translation is good (zen) and change (kai).
The philosophic translation is to motivate people so
they continuously improve their surroundings. As an
industrial term Kaizen means the continuous search for
imperfections and the willingness to continuously make
small changes to correct these imperfections.
The roots of Kaizen extend back to the late 1940s when
Japan’s economy was still reeling from WWII. As we
now know, Japan rapidly developed into an industrial
power and is viewed today as one of the world’s most
prosperous countries. By the late 1970s Japan was outproducing most other countries with better overall quality
and pricing. Today, Japanese facilities are renowned for
producing the highest-quality products and providing the
world some of the most advanced innovations.
In the years following the war, the U.S. provided aid to
support Japan’s reconstruction. A number of prominent
American industrial consultants were asked to participate
in the effort. These consultants introduced many new
efficiency methods to struggling facility managers. The
managers embraced these methods and improved upon
them by integrating many of their own cultural and
business philosophies. This gave these methods broader
application in their own facilities. Just like many other
popular lean manufacturing methods and systems, Kaizen
grew from this same seed.
Since its early beginnings, the Kaizen philosophy has
helped many Japanese facilities attain the highest levels
of success. Today, Kaizen is helping increase profits
and efficiencies at facilities around the globe. Success,
however, takes time. Managers and workers must be open
to accepting change and supporting the philosophy in all
DuraLabel.com
Kaizen is being successfully applied in a wide range of industries around
the globe. With a willingness to change, most industrial facilities can
successfully apply this philosophy.
their work. Many roles and responsibilities will change
with implementation. Management will turn to workers
for ideas and workers will have greater responsibilities
helping their facility succeed.
Where Kaizen is successfully applied, managers support
workers by helping them find and implement new methods
of efficiency. Even top executives are expected to actively
participate in Kaizen. This ensures all employees are
unified in their effort to constantly improve their facility.
Compared with many traditional Western management
methods, Kaizen is often well accepted by workers
from the very start. Their proactive participation and
involvement in a facility’s success naturally promotes its
continued application.
877.534.5157
5
6. Western Philosophies
TRADITIONAL WESTERN BUSINESS PRACTICES
Traditional Western philosophies and methods have been used for centuries and were most successful during the Industrial Revolution.
However, newer management philosophies and methods have proven these are less effective.
At the core of traditional Western business philosophies is
“division,” which is a segregation by work type. Western
businesses generally segregate management, labor, and
specializations into separate divisions.
Most managers in Western businesses are seen as the
leaders. They develop the ideas, propose them, and
implement them. Their role is to be in charge. Managers
in these businesses generally spend much of their time
working in an office and are usually not expected to make
regular visits to work areas. In some facilities, this may
serve as a buffer so managers have space to work. This
can, however, actually reduce communication and, in turn,
reduce their effectiveness to manage.
Common Western Philosophies
• Innovation: Developed by those designated to do so
• Reliability: Good machinery means reliable production
• Performance: Managers only visit work areas to make
improvements
• Specialization: Learning other jobs may result in a lay-off
due to redundancy
• Bottom Line: Changes are implemented only when money
can be saved
• Repetition: The more you do the same job, the better you
get at it
• Tradition: “If it ain’t broke, don’t fix it”
• Direction: Wait for management to tell you what to do or
produce
• Profit Sharing: Rewards go to employees producing
measurable profits (e.g. Sales)
• Inventory: Inventories are well stocked to avoid running out
• Quality: Good designers produce quality products
6
• Not My Job: Venturing outside of your job description may
result in an additional expected duty
• Loyalty: Always take care of “Number One”
877.534.5157
DuraLabel.com
7. Kaizen Philosophies
BENEFITS
KAIZEN IS DIFFERENT
In recent history, Kaizen-influenced business philosophies have helped to shape new roles for much of the world’s management and
labor. As a result, many facilities are experiencing greater efficiencies and organization than ever before.
More and more facilities are finding that Kaizen
increases efficiency and lowers costs. These vary from
traditional Western business methods and help to create an
environment in which all employees participate in finding
efficiency improvements. Workers are never afraid to
contribute to their facility’s success under Kaizen.
Kaizen takes worker empowerment seriously. In facilities
where Kaizen is applied, workers aren’t just encouraged to
contribute ideas for facility improvements—it’s expected.
The philosophy is shared by all and creates an atmosphere
where teamwork and achievement are promoted. The
benefits of switching to Kaizen include increased
production, morale, and communication.
In Kaizen, all suggested ideas are reviewed by
management and given serious consideration without
preferential treatment. Ideas found to have merit are
quickly implemented. Rapidly turning good ideas
into action motivates workers to constantly strive for
improvement and work to keep their facility competitive.
Kaizen encourages regular communication between workers and management.
Management supports this by remaining open to new ideas from all employees.
Basic Kaizen Philosophies
• Innovation: Comes from anyone and ideas with merit
are supported by all
• Reliability: Machine operators maintain and improve their
own machines for greater reliability
• Performance: Managers spend time in work areas so
performance improvements are well-communicated
• Specialization: Learn your job first and then learn
everything related to your job
• Bottom Line: Cost reductions involve many small steps
by both management and labor
• Repetition: The more one improves, the more a facility
saves, the more employees are compensated
• Tradition: A company should only have a tradition for
change
• Direction: Rely on visual communication to tell you what to
do next
• Profit Sharing: All employees are rewarded for finding
efficiency improvements that increase profits
• Not My Job: Find ways to make your job easier and more
interesting
• Inventory: Lower inventories reduce waste and help
uncover flaws in the system
• Goals: Management’s goal is the same as yours
• Quality: Quality comes from constant attention to all
levels of product design, development, and production
DuraLabel.com
• Loyalty: Lookout for your company
877.534.5157
7
8. Benefits
BENEFITS
BENEFITS & APPLICATION OF KAIZEN
Where Kaizen is properly applied, facilities will experience many benefits. Managers often become more effective leaders, workers are
motivated and employees begin to operate as a cohesive unit. The end-result is an environment fostering teamwork and employees
working together to achieve common goals.
Not only does Kaizen help all employees improve the
workplace, facilities experience many economic benefits.
Often, these include increased profits and lower costs.
Kaizen provides managers with access to a constant
flow of facility improving ideas and stand to benefit the
most from its implementation. Many ideas will be ones
management would never hear without Kaizen in place.
Once implemented, the impact of these ideas can ripple
throughout a facility and positively influence many
unforeseen elements. Hidden issues that may have gone
unnoticed are often revealed.
Of course, these are benefits only realized by disciplined
managers. To attain facility goals managers must work to
support Kaizen at every given opportunity and continually
seek new ideas from workers. Over time, workers place
greater value on management’s role─increasing respect
and making them more effective leaders.
This management style not only helps managers, it
empowers workers. They are more likely to implement
a change when it’s their own idea. Supporting this
empowerment brings focus to achieving the same
efficiency-improving and profit-increasing goals as
management.
The application strategies provided in this guide are
designed to help a Kaizen Leadership Team adapt Kaizen
to their own facility. Since no two facilities are the same,
the suggested strategies provided should be modified to
best suit your facility’s individual needs.
Success Stories
One of the largest auto manufacturers in the world is a
well-known pioneer in Kaizen. The company is credited
with being the first to formalize the philosophy and bring
8
Kaizen was implemented by one of the world’s largest auto manufacturers
to great success
it global acceptance. Officially applied during the 1960s,
the company credits the philosophy for fostering many
successes. Over a one-year-period the company recorded
over 75,000 suggestions from 7,000 employees. The
company reported a 99 percent implementation rate for
the ideas submitted.
These are unusual results, but clearly achievable with
proper application of Kaizen. One can only imagine
how much money the company saved with this many
improvements.
In Kaizen, facility employees must view each idea as
only one small improvement in their continual search for
ideas. Improvements add up over time and are known
to provide substantial benefits throughout a facility.
Quality, customer service, and even sales can be positively
influenced. Safety issues and sick leave are known to
decrease as well. In addition, employees working in a
Kaizen facility generally find work to be easier and more
enjoyable. This results in higher employee morale, job
satisfaction, and lower turn over.
877.534.5157
DuraLabel.com
9. BENEFITS
With every employee looking for ways to make
improvements, facilities may see several fundamental
benefits:
• Improved productivity
• Improved quality
• Reductions in safety issues
• Quicker deliveries
• Lower costs
• Increased customer satisfaction
Kaizen is known to be beneficial to facilities facing
economic challenges. In Japan, facilities applying Kaizen
overcame many great challenges. Post-WWII Japan
would be considered far from an ideal environment for
unbridled economic growth. Yet, it occurred—thanks, in
part, to Kaizen.
Like the implementation of any new method or process,
applying Kaizen requires a period of adjustment. At
first, employees and managers may be reluctant to make
changes. Their roles, after all, will be significantly
different. Holding meetings to discuss Kaizen with
management and workers will go a long way to helping a
facility overcome resistance and open the door to greater
acceptance. Ensure every employee understands the
benefits of applying Kaizen.
In general, facilities are going to benefit from Kaizen
differently—as will many employees. However, there
will be facility-wide benefits all employees will enjoy
equally. Early on, these benefits should be documented
and shared with employees. Use banners, newsletters,
and announcements at regular meetings to foster Kaizen’s
continued acceptance and use.
DuraLabel.com
Worker ideas can be as simple as adding visual communication at
strategic locations to help workers find inventory easier.
Application Elements
The following elements describe several key concepts
used to successfully apply Kaizen:
• Make continuous small improvements based on employee
suggestions
• Hold facility-wide meetings where employee suggestions
are always the central theme
• Treasure all employee suggestions as a positive
contribution to improve operations
• Move the flow of ideas up and down the chain of command
• Foster the open sharing of ideas
• Create a simple suggestion form
• Assign categories for suggestions
• Develop a process to manage suggestions
• Ensure suggestions are taken seriously
877.534.5157
9
11. BENEFITS
Ranking
As shown in the sample forms below (Fig 1 & 2), each
facility needs to develop a system of ranking suggestions.
Ranking helps managers sort ideas worth implementing
from those without merit.
Depending on the facility, medium-quality suggestions
with less complexity could be categorized for
implementation by work area personnel (WAP).
Suggestions with higher levels of complexity can
be categorized for management implementation or
involvement (MNG). In either case, all suggestions should
be easily and simply ranked. This way, managers can give
serious consideration to suggestions with the greatest
merit. Ensure all suggestions are reviewed without bias
and seriously considered. Failing to properly review
suggestions would be counterproductive.
To help rank suggestions by merit, establish a point system.
Criteria used to rank suggestions can then be categorized.
The members of the Kaizen leadership team should develop
a point system tailored to fit their facility. Ranking examples
include: Quality, Complexity, and Supervisory Attention.
Always work to encourage suggestions. This is
accomplished by ensuring contributors know their ideas
will be reviewed and seriously considered. Implementing
most reasonable ideas encourages future contributions
and allows for testing before elimination. If an idea
works, standardize it. If not, provide a reason to the
employee who made the suggestion. By creating this
avenue for contributions, the overall quality and quantity
of ideas should improve and help put Kaizen suggestions
into action.
SUGGESTION FORM
NAME: Kim Richards
WORK AREA: Station 15
DATE: 7/4/2011
#27327B
PROCESS OR STATION AFFECTED: Packaging Machine #3, Stapling Spring
ISSUE:
Machine #3 does not properly staple packages because the spring cannot properly penetrate
packaging 10% of the time. This issue is slowing production and delaying delivery.
SUGGESTION:
Replace spring on machine so packaging can be properly stapled, or allow us to hand-staple
packaging instead. This would require the purchase of a hand-stapler to replace the current
machine.
Fig 1
SUGGESTION RANKINGS
NAME
WORK
AREA
SUG. #
DATE
Rick Spencer
Station 3
27323B
7/1/2011
3
1
4
3/WAP
Bill Coffee
Station 27
27324B
7/1/2011
8
3
1
8/WAP
Jill Gentry
Station 11
27325B
7/1/2011
7
2
1
7/WAP
Joe Anderson
Station 11
27326B
7/2/2011
6
2
6
6/WAP
Kim Richards
Station 15
27327B
7/4/2011
8
7
8
8/MNG
Don Cross
Station 27
27328B
7/5/2011
3
2
5
3/WAP
Julie Fields
Station 2
27329B
7/8/2011
5
3
3
5/WAP
Tim Gross
Station 1
27330B
7/9/2011
1
1
1
1/WAP
QUALITY COMPLEXITY
SUPERVISORY RANK/
ATTENTION
IMP.
Fig 2
DuraLabel.com
877.534.5157
11
12. BENEFITS
Establishing Procedures
Incentives & Rewards
Remember to
DRYER #4
allow workers to
STARTUP PROCEDURE
implement the
1. START BLOWER AND RUN FOR 3 MINUTES
2. OPEN GAS SUPPLY TO PILOT LINE
ideas they suggest
3. PRESS LIGHTER
4. VERIFY PILOT FLAME IS BURNING
5. OPEN GAS LINE TO BURNER 1
whenever possible.
6. OPEN GAS LINE TO BURNER 2.
Implementation
CONTACT CARL JONES AT 555-1673 WITH QUESTIONS
may still require
management participation, but empowering a worker to
actively lead a procedure implementation often brings
greater acceptance and lasting adoption by workers. As
soon as a new procedure is implemented, incorporate it into
the work area’s standard operating procedures. Post new
standard operating procedures on or near locations-of-use
to reduce mistakes, improve efficiency, and reduce injury.
Never miss an opportunity to reward a good idea.
Incentives show your facility values all suggestions and
encourages more. Monetary incentives work well, but in
some situations other rewards may be just as effective.
Facilities often find a great return on these investments.
The cost of a bonus generally saves a facility much
more in return. In Japan, employees are known to have
furnished their entire homes through bonuses, while the
facilities they work at realized great savings through
implementation of quality ideas.
Depending on how a Kaizen system is structured, rewards
can go to individual employees or to work areas where an
idea originated. Rewarding workers by work areas helps
encourage teamwork, but individual rewards can also
breed more competition and better suggestions.
Visually communicate weekly progress reports within
work areas. Workers can then track the progress of the
procedures they implement. Progress charts are ideally
printed on labels and signs and adhered to walls or
equipment at strategic locations. When handled in this
manner, workers are motivated to see their ideas succeed
and open to implementing more. This increases their
performance and lifts morale. Plus, employees are known
to take greater pride in a procedure they helped define and
implement.
To track a facility’s progress, chart all successfully
implemented ideas on a banner and post it for all
employees to see (Fig 4). This creates competition and
becomes a very effective tool in attracting more
inventive ideas. When properly implemented, both
monetary and non-monetary incentive programs have
the potential to snowball into a facility-wide competition
amongst workers.
KAIZEN
2011 SUGGESTIONS
Status as of: 1/11
100
90
80
70
60
50
40
30
20
10
0
S
T
A
T
I
O
N
S
T
A
T
I
O
N
S
T
A
T
I
O
N
S
T
A
T
I
O
N
S
T
A
T
I
O
N
S
T
A
T
I
O
N
S
T
A
T
I
O
N
S
T
A
T
I
O
N
S
T
A
T
I
O
N
S
T
A
T
I
O
N
S
T
A
T
I
O
N
S
T
A
T
I
O
N
S
T
A
T
I
O
N
S
T
A
T
I
O
N
S
T
A
T
I
O
N
S
T
A
T
I
O
N
S
T
A
T
I
O
N
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
Display bar chart banners in the work areas to help workers track the progress of their contributions and compare them with others.
12
877.534.5157
DuraLabel.com
13. BENEFITS
The goal of charting successfully implemented ideas is
to provide employees with the feedback and motivation
they need to continue to make more suggestions.
Ultimately, their ideas will lead to facility improvements.
Management should make every effort to help the process
be as pleasant as possible for all employees.
Customer Focus
Ultimately, the main goal of Kaizen is to satisfy the
customer. To help achieve this, the customer’s needs
and requirements must be understood. The following
list provides several sample questions facilities may find
useful in learning customer attitudes:
Treating fellow co-workers as customers helps to fix problems and ensure
quality end products.
When workers see co-workers as customers, more care
is put into the products they produce. They may notice
inconsistencies in the product they are assembling. Instead
of overlooking the issue and passing-it-on to the next
station they ask, “why is the product inconsistent?”
• What does the customer want from this product?
• Why do they like our product?
• What makes the product more acceptable to the
customer?
• Would I want the product?
In Kaizen, the term “customer” applies to much more than
just external individuals. Employees at a Kaizen facility
consider everyone they come into contact a customer.
Employees are willing to trace these issues up the line
to the root cause. The issue can then be eliminated by
suggesting an improvement. The ultimate goal is to
provide the highest level of “customer” satisfaction.
SMS-900
DuraLabel.com
877.534.5157
13
14. Sustaining
EXAMPLE HEADER
STANDARDIZING & SUSTAINING KAIZEN
Employees need uniform, facility-wide policies to ensure Kaizen is properly followed. Procedures should be established to describe how
ideas are collected, rewarded, and implemented.
Managers should make every effort to keep the lines
of communication between work area personnel and
mangers open. Their offices should be made as accessible
as possible to all employees. As an example, product
design engineers should be communicating directly
with production managers on the floor. This feedback
helps designers recognize issues sooner and well before
production of a new product begins.
• Evaluate current facility goals and consider setting new ones
• Goals should focus on reducing production time, cost, and
waste
• Changes made to meet these goals should be reviewed and
adjusted wherever necessary
• Organizational structure and policies should be closely
analyzed so Kaizen is uniformly applied
• Information and ideas should travel up and down the chain
• Executives should commonly walk into work areas and
talk face-to-face with workers
• Executives should often ask workers about their families
and jobs
Integration
Kaizen should be viewed as a facility’s “umbrella
philosophy,” one that covers all other lean manufacturing
systems, methods, and processes. This helps to ensure
Workers solve many common work area issues by forming a Quality
Control Circle (QCC).
the successful implementation of ideas, by binding each
into a single efficiency-improving movement. In addition,
facilities experience many side benefits by integrating
Kaizen with other lean manufacturing processes, systems,
and philosophies. By doing so, techniques can be modified
to better suit unique facility requirements.
Therefore, it’s a good idea to implement Kaizen first.
Once fully implemented, employees will often be ready to
accept more complex and challenging implementations.
Issue Resolution
Set goals to reduce production time, cost, and waste.
14
In the spirit of Kaizen, a facility always views itself as
imperfect. Issues are inevitable, but some issues will
require more expertise than any single person may have.
This is where a “small group activity” known as Quality
Control Circles (QCC) can be used. QCC is specifically
designed to help workers resolve more complex issues
within their own work areas. QCC is rarely used for
formal assignments and generally formed, ad-hoc, by the
employees themselves whenever a complex issue arises.
877.534.5157
DuraLabel.com
