Kaizen Philosophy

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A presentation on The Kaizen Pholosophy, a well known workplace management philosophy originated in Japan.
The application of this philosophy has led to the success of several companies like Toyota and Canon.

Published in: Business, Technology

Kaizen Philosophy

  1. 1. KAIZEN PHILOSOPHY Pratik Basu 6 ME- 60 B.E. Semester 8 th Mechanical Engg. Lingaya’s Institute Of Management & Technology
  2. 2. Presentation flow <ul><li>Introduction to Kaizen </li></ul><ul><li>Key Principles </li></ul><ul><li>Key Implementation Concepts </li></ul><ul><ul><li>5 S </li></ul></ul><ul><ul><li>Deming or Shewhart Cycle (PDCA) </li></ul></ul><ul><ul><li>Quality circles </li></ul></ul><ul><ul><li>Kanban </li></ul></ul><ul><li>TOYOTA Implementation </li></ul><ul><li>Key Benefits </li></ul><ul><li>Applications </li></ul><ul><li>Future prospects </li></ul>
  3. 3. Introduction : What is “Kaizen”? <ul><li>Kaizen means &quot;improvement&quot;. </li></ul><ul><li>It is a Japanese workplace philosophy which focuses on making continuous small improvements which keep a business at the top of its field. </li></ul><ul><li>The philosophy involves everyone in the organization – managers and workers alike – and urges them to make never-ending efforts for improvement. </li></ul><ul><ul><li>For example , in Japanese companies, such as Toyota and Canon, several suggestions per employee are written down, shared and implemented. </li></ul></ul>
  4. 4. The Origin of Kaizen <ul><li>The foundation of Kaizen was laid in Japan after the Second World War, when the country was attempting to rebuild infrastructure and rethink many systems. </li></ul><ul><li>Several American experts on workplace improvement including W. Edwards Deming and Joseph Juran came to Japan to lecture and teach. </li></ul><ul><li>Using information from these individuals regarding the TWI (Training Within Industry) programs , the concept of Kaizen began to be formed and it took off in the 1950s. </li></ul>
  5. 5. Kaizen : Key principles <ul><li>The first is a heavy reliance on teamwork , in which everyone's opinion is valued and considered. </li></ul><ul><li>Workers also have strong personal discipline , and morale in factories must improve under kaizen. </li></ul><ul><li>Workers should also be confident about offering suggestions for improvement, even when a system appears to be functioning adequately </li></ul><ul><li>Kaizen recognizes that there is always room for improvement </li></ul><ul><li>Finally, the system uses quality circles, worker groups who meet and work together to solve problems and come up with innovative changes. </li></ul>
  6. 6. Kaizen : Implementation Concepts <ul><li>Kaizen encompasses many of the components of Japanese businesses that have been seen as a part of their success. </li></ul><ul><li>Some of these concepts inspired by Kaizen are: </li></ul><ul><ul><li>5 S </li></ul></ul><ul><ul><li>The Deming or Shewhart Cycle (PDCA) </li></ul></ul><ul><ul><li>Quality circles </li></ul></ul><ul><ul><li>Kanban </li></ul></ul>
  7. 7. “5 S” in Kaizen <ul><li>“ 5 S” is a method for organizing a workplace, especially a shared workplace (like a shop floor or an office space). </li></ul><ul><li>“ Seiri” (Sort): Tidiness, keeping only essential items. </li></ul><ul><li>“ Seiton” (Set In Order): Orderliness, eliminate extra motion. </li></ul><ul><li>“ Seiso” (Shine): Cleanliness, keep the workplace clean. </li></ul><ul><li>“ Seiketsu” (Standardize): Standardize work practices </li></ul><ul><li>“ Shitsuke” (Self Discipline): Sustaining, maintaining discipline and reviewing standards. </li></ul>
  8. 8. The Kaizen cycle <ul><li>PDCA (Plan-Do-Check-Act) cycle </li></ul><ul><li>Also known as the Deming or Shewhart cycle </li></ul><ul><li>It a continuous never-ending process i.e. cyclic ad-infinitum </li></ul>
  9. 9. Quality Circles <ul><li>A quality circle is a volunteer group composed of employees, who are trained to identify, analyse and solve work-related problems and present their solutions to management. </li></ul><ul><li>This improves the performance of the organization, while also motivating and enriching the work of employees. </li></ul><ul><li>First established in Japan in 1962 in the Nippon Wireless and Telegraph Company, it quickly became popular and spread to more than 35 companies in the first year. </li></ul>
  10. 10. Kanban <ul><li>Kanban (meaning “signboard” or “billboard”) is a concept related to lean and just-in-time (JIT) production. </li></ul><ul><li>The concept got shape when Toyota observed how supermarkets operate. </li></ul><ul><ul><li>The supermarket only stocks what it believes it will sell; Therefore has limited and only necessary inventory </li></ul></ul><ul><ul><li>Signboards clearly indicate to shoppers where what is stocked; so the customers can shop efficiently and complete their shopping in time. </li></ul></ul><ul><li>For a lean and efficient system, it is required that the production is determined according to the actual demand. </li></ul><ul><li>In situations where supply time is lengthy and demand is difficult to forecast, the best one can do is to respond quickly to observed demand. </li></ul><ul><li>This is where a Kanban system can help: It works as a communication system which immediately provides information about changed demand through the entire supply chain . </li></ul>
  11. 11. Kaizen in Toyota <ul><li>The Toyota Production System is known for it’s use of kaizen. </li></ul><ul><li>After World War II, Taiichi Ohno was charged with setting up machine shops for Toyota. He studied the Ford production systems. He analyzed the various productive measures and discrepancies in the system. </li></ul><ul><li>Based on the analysis, he outlined several production strategies for Toyota. These production strategies later became benchmarks for production practices across the world. </li></ul><ul><li>Toyota thus became one of the first companies in the world to adopt practices such as Kaizen. Analysts however feel that Kaizen kept TPS, JIT, Kanban and other practices working smoothly as an interlinked strategic operational plan. </li></ul>
  12. 12. Toyota’s use of Kaizen to solve labor crisis <ul><li>In the early 1990s, Toyota was facing acute labor shortage </li></ul><ul><li>Toyota’s initial management focus was on increasing production efficiency through higher production levels with less number of workers. This resulted in increased stress and worker exodus </li></ul><ul><li>The global upsurge in car demand during 1987-1991 led to drastic increase in demand for labors </li></ul><ul><li>Toyota realized that it would have to rely on Kaizen for modifying its existing assembly lines to attract workers. </li></ul><ul><li>The company decided to change its working conditions to accommodate workers of more diverse nature </li></ul><ul><li>The management decided to allow plants to set their own annual production efficiency targets. Production efficiency measurement was based on worker’s production time rather than on best production time </li></ul>
  13. 13. Key Benefits of Kaizen <ul><li>Widely applicable – Can be used in both manufacturing and non-manufacturing environments </li></ul><ul><li>Highly effective & results oriented - Kaizen events will generate quick results, Measurable results, Establish the baseline, and measure the change </li></ul><ul><li>Higher operational efficiency – </li></ul><ul><ul><li>Reduces wastage, like inventory waste, time waste, workers motion </li></ul></ul><ul><ul><li>Improves space utilization and product quality </li></ul></ul><ul><li>A Learning Experience – Every member of a Kaizen Team will walk away from the event learning something new. </li></ul><ul><ul><li>Encourages big picture thinking </li></ul></ul><ul><ul><li>Results in higher employee morale and job satisfaction, and lower turn-over. </li></ul></ul>
  14. 14. Kaizen – A mixed bag <ul><li>Why Kaizen works well for some… </li></ul><ul><ul><li>It has been suggested that Kaizen works particularly well in Japan because it has a collective culture, and Kaizen relies on collective values. </li></ul></ul><ul><ul><li>The focus is more on improvement and refinement of existing methods, rather newer innovations. </li></ul></ul><ul><li>And not so for others… </li></ul><ul><ul><li>People in more individualistic cultures (like in Western corporations) may struggle with some of the basic principles of Kaizen. </li></ul></ul><ul><ul><li>Kaizen idea of improvement is contrary to the beliefs of some Westerners, who place a high value on the achievement and maintenance of perfection. </li></ul></ul>
  15. 15. Kaizen can be applied to real life also… <ul><li>Consider the case of a student’s bag. The items can be classified into </li></ul><ul><li>Notes and assignments </li></ul><ul><li>Stationary (pens, notepads etc.) </li></ul><ul><li>Other items like calculators, pen drive etc. </li></ul><ul><li>Regular checking of the stationary items ensures that the notemaking is not affected due to lack of stationary. </li></ul><ul><li>Keeping notes and assignments organized enables faster access to them. </li></ul><ul><li>Overall checking of bag at regular intervals ensures that no necessary items are missing. </li></ul>
  16. 16. Conclusion <ul><li>“ Kaizen” or “continuous improvement” should be a part of our everyday life. </li></ul><ul><li>The concept is simple but if properly applied can lead to significant efficiency improvements for organizations. </li></ul><ul><li>Kaizen and its associated concepts like PDCA, Kanban and Quality Circles have been critical to the success of large organizations like Toyota, Canon and Nippon. </li></ul>
  17. 17. Sources <ul><li>www.wikipedia.org </li></ul><ul><li>www.howstuffworks.com </li></ul><ul><li>Masaaki Imai(1986). “ Kaizen: The Key to Japan's Competitive Success ” McGraw-Hill/Irwin. </li></ul><ul><li>www.icmrindia.org </li></ul><ul><li>www.toyota.com </li></ul>
  18. 18. Thank you.

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