Kaizen is a system of continuous improvement in quality, technology, processes, company culture, productivity, safety and leadership.

1. Presentation Topic :KAIZEN
SIOM | Symbiosis Institute of Operations
Management

2. Decoding KAIZEN
 Japanese Terminology.
Change for Better.
SIOM | Symbiosis Institute of Operations
Management

3. Concept of Kaizen
• People who perform the task are most knowledgeable about
that process.
• It must be achieved with 100% participation.
• This team work encourages innovation and change.
• Helps break barriers and makes room for continuous
improvement.
• Focuses upon Small but Continual Improvement.
• Approach towards higher standards in Quality enhancement and
Waste reduction.SIOM | Symbiosis Institute of Operations
Management

4. Three Pillars of Kaizen
HOUSEKEEPING
WASTE
ELIMINATION i.e.
MUDA
STANDARDIZATION
SIOM | Symbiosis Institute of Operations
Management

5. 1. HOUSEKEEPING
 The following can be employed using the 5S methodology
5s includes
 Seiri (Sort)
 Seiton (Set in Order)
 Seiso(Shine)
 Seiketsu (Standardize)
 Shitsuke (Sustain).
SIOM | Symbiosis Institute of Operations
Management

6. 2. WASTE ELIMINATION (MUDA)
 There are seven types of wastes which are classified
as:
 Muda of overproduction.
 Muda of inventory.
 Muda of defects (repair or rejects).
 Muda of motion.
 Muda of processing.
 Muda of waiting.
 Muda of transportation
SIOM | Symbiosis Institute of Operations
Management

7. 3. STANDARDIZATION i.e.
PDCA Cycle
• PLAN : Identifying & Analyzing the
problem.
• DO : Developing and Testing a Potential
solution.
• CHECK : Study and Compare the
results.
• ACT : Implementing the Improved
solution fully.
SIOM | Symbiosis Institute of Operations
Management

8. Elements of Kaizen
 Kaizen comprises of five basic elements:
 Teamwork
 Personal discipline
 Improved morale and employee satisfaction
 Quality circles
 Suggestion for Improvement
SIOM | Symbiosis Institute of Operations
Management

9. Kaizen culture
 Creating a synergy between Management and the shop floor /
operations team
 The CEO must spearhead Kaizen initiative.
 Management must commit required funds, time and other
resources for all employees right from grass root levels to top.
 Mapping results to processes
 Processes are required to be set up to give a vivid picture to
organizational members whether results of a particular Kaizen
initiative can be directly attributed to that initiative.
 Brainstorming
 Organizational members need to brainstorm ideas and then
implement outcome of such brainstorming sessions so that
everyone is able to see the problem and try solutions.
SIOM | Symbiosis Institute of Operations
Management

10. Embedding Kaizen Culture
Establish the champion
Establish a governing committee
Start communication boards and
newsletters
Regularly track Kaizen activities on
a dash board
SIOM | Symbiosis Institute of Operations
Management

11. SIOM | Symbiosis Institute of Operations
Management

12. Benefits of Kaizen
 Kaizen involves every employee in making change in most
cases small, incremental changes
 It focuses on identifying problems at their source, solving them
at their source, and changing standards to ensure the problem
stays solved
 Kaizen reduces waste in areas such as inventory, waiting times,
transportation, worker motion, employee skills, over
production, excess quality and in processes
 Kaizen Improves space utilization, product quality, use of
capital, communications, production capacity and employee
retention
 Kaizen Provides immediate results. Instead of focusing on large,
capital intensive improvements, Kaizen focuses on creative
investments that continually solve large numbers of small
problems.
SIOM | Symbiosis Institute of Operations
Management

13. Drawbacks of Kaizen
 It’s not a programmed approach but a philosophical
approach.
 It doesn’t encourage radical changes but a gradual change
over a long period of time.
 It requires continuous monitoring ,supervision and
mentoring to maintain the spirit of kaizen.
 It works well when the average age of employees is low.
SIOM | Symbiosis Institute of Operations
Management

14. Companies adopting Kaizen
 GSK NASHIK
1. Corrective and preventive actions (CAPA) are formed.
2. GEMBA is carried out in the form of miniature audits.
3. Current issues and suggestions from the shop floor and other
departments are considered.
4. This is done in such a way that daily day to day activities are
not affected.
5. GSK is formulating a system called Glaxo Production
Management (GPM) system in lines with Toyota Production
Management (TPM) system.
SIOM | Symbiosis Institute of Operations
Management

15. Companies adopting Kaizen
 FIDELITY INVESTMENTS
1. Fidelity Investments is the largest and best-known mutual
fund manager in the United States.
2. Fidelity's commitment to Kaizen is reflected in
its performance management and compensation systems.
3. Each fall, Fidelity companies establish business goals which
are tiered through the company's various divisions down to
the individual managerial level.
4. Progress towards goals is evaluated and adjusted on a
monthly and quarterly basis.
SIOM | Symbiosis Institute of Operations
Management