1. KAIZENThe Key to Japan’s Competitive Success By MASAAKI IMAI // YIS//062709//

2. TABLE OF 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 // YIS//062709//

3. CHAPTER I KAIZENThe Concept // YIS//062709//

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6. Quality improvement

7. Just in Time

8. Zero defects

9. Small-group activities

10. Cooperative labor – management relations

11. Productivity improvement

12. New-product development

13. Customer orientation

14. TQC

15. Robotics

16. QC circles

17. Suggestion system

18. Automation

19. Discipline in the workplace

20. TPM// YIS//062709//

21. JOBS FUNCTION PERCEPTIONS // YIS//062709// Japanese perceptions Western perceptions Top management Middle management Supervisors Innovation Innovation Workers KAIZEN Maintenance Maintenance

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23. Deming Wheel // YIS//062709//

25. A skill award

26. A fighting spirit awardFocus more on process Rather than result !!!

27. CHAPTER II Improvement East & West // YIS//062709//

28. KAIZEN Continuous Improvement INNOVATION Breakthrough KAIZEN Innovation

29. // YIS//062709// 1

30. // YIS//062709// 2

31. // YIS//062709// Innovation Standard Actual Maintenance KAIZEN PATTERN Actual Standard Standard Actual Maintenance KAIZEN Innovation Actual Standard Innovation Time Time Innovation + Kaizen

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33. // YIS//062709// Upcoming Japanese product perceptions Technology Level Preferred Process Product High Technology Technology oriented innovation Innovative product with Kaizen orientation Technology oriented KAIZEN Low Technology People oriented KAIZEN Kaizen oriented product

34. CHAPTER III KAIZEN by TOTAL QUALITY CONTROL (TQC)

35. 1 3 5 7 9 2 4 6 8 10 Quality control deals with the Quality of people Speaks with data Quality first, not Profit first Manage the previous process ( Upstream) The next process is the customer Customer oriented TQC, not manufacturer oriented TQC TQC starts with training and ends with training Cross Functional Management to Facilitate Kaizen Follow PDCA cycles // YIS//062709// Standardize the results

36. 1. Quality assurance 2. Cost reduction TQC 3. Meeting production quota 4. Meeting delivery schedule 5. Safety 6. New-product development 7. Productivity improvement 8. Supplier management TQC // YIS//062709//

38. ACT PLAN CHECK DO // YIS//062709//

39. // YIS//062709// 4M checklist

40. CHAPTER IV KAIZEN the PRACTICE

41. // YIS//062709// MANUFACTURING OBJECTIVES

42. // YIS//062709//

43. // YIS//062709// B A C D E Seiton Seiri Seiso 5s Shitsuke Seiketsu

44. Waste of REJECTS Waste in WIP Waste in DESIGN delivery cost quality NINE WASTES !! product Waste in FIRST PHASE OF PRODUCTION Method / system resources money facilities manpower Waste in EXPENSES Waste in FACILITIES Waste in MANPOWER Waste in MANAGEMENT Waste in MOTION // YIS//062709//

45. // YIS//062709// Shortened lead time Reduced time spent on non-process work Reduced inventory JIT Better balance between different processes Problem clarification

46. // YIS//062709// Top management responsibility : Strategy & Planning Administration responsibility: Provide support

47. Time 100% Involvement 50% 0% Idea Development Design Development Model Development Trial runs & customer appraisal Final product design Tools & machinery Process control Production PRODUCT DEVELOPMENT PHASE AT IDEAL COMPANY

48. CHAPTER V KAIZEN MANAGEMENT

49. // YIS//062709// Management & Labor ; Enemies or Allies? Cooperation Working together to bake bigger pie Confrontation fighting over how to divide the pie

50. 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

51. // YIS//062709// MANAGEMENT & LABOR RELATION Confrontation Formal & Organization oriented Informal & Individual oriented Cooperation

52. // YIS//062709// Job potential If management is not flexible Calls for management initiatives Income potential - + Job allocation if labor is flexible Calls for labor initiatives Job allocation If labor is not flexible Job potential if management is flexible LABOR RESPONSE

53. General statement of direction for change (qualitative ) Top management Definition of top management statement (quantitative) Division Management Specific goals (quantitative) Middle Management Specific actions (quantitative) Supervisors POLICY DEPLOYMENT

54. CHAPTER VI The KAIZEN APPROACHto PROBLEM SOLVING

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

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57. // YIS//062709// 5Ws + 1 H

58. // YIS//062709// VELOCITY FOR COMPETITIVE ADVANTAGE Standardization Process optimization Elimination of waste Evolution in people and technique Durable training

59. // YIS//062709// CUTTING CHANGE OVER TIME Form a team & allocate responsibilities 7. Set-up board for visualization & monitoring 2. Measure current state Seven Steps 6. Analysis & improvement 3. Analysis & improvement 5. Set process with new scenario 4. Apply first improvement

60. CHAPTER VI CHANGING the CORPORATE CULTURE

61. // YIS//062709// 2 1 3 The costumer : The ultimate Judge of quality The eye of the needle – struggle to enter the market Supplier 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” 4 Changing Corporate culture : Challenge to the west

62. Anticipate Business Fluctuation

63. // YIS//062709//

64. // YIS//062709// getting workers' acceptance and overcoming their resistance to change. Constant effort to improve industrial relations Emphasis on training & education of workers Developing informal leaders among the workers Formation of Small Group Activities such as QC circles Support & 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 goals Bringing social life into the workshop as much as practical Training supervisor so that they can communicate better & create a more positive involvement with workers Bringing discipline to the workshop

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