Ad Monsters Kaizen - Mark Verone
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The document discusses the concept of Kaizen, or continuous improvement, and how it can be applied to operations teams to achieve higher quality and eliminate waste. It provides background on the origins and principles of Kaizen in Japanese manufacturing. Key aspects include focusing on process improvement over results alone, taking a systemic view, and avoiding blame. Methods like PDCA (Plan-Do-Check-Act) and focusing on small, incremental changes are emphasized. The document argues that cross-training, reducing redundancies, and viewing problems as opportunities for improvement have helped the operations team discussed provide better service through Kaizen.
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- 1. Kaizen: Achieving Operational Excellence through Continuous Improvement AUGUST | 2008 Mark Verone Director, Partner Marketing Operations
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Editor's Notes
- INTRODUCTION: Why Kaizen? My favorite MBA class was Operations Management. The professor was very hands-on when it came to explaining things and he was responsible for building Grainger’s distribution systems. The pivotal moment of the class was when he took us on a field trip to the $200MM Grainger Distribution Center he built in Chicago. All these concepts came together and jumped out of the text book. While the concepts I am discussing today are rooted in manufacturing, I believe they can apply to Ad Operations…and we are now seeing the results of our efforts
- Masaaki Imai made the term famous in his book, Kaizen: The Key to Japan's Competitive Success . Kaizen is a Japanese term for continuous improvement that has its roots in America’s brain trust.
- Kaizen is a daily activity whose purpose goes beyond improvement. It is also a process that, when done correctly, humanizes the workplace, eliminates hard work (both mental and physical), and teaches people how to do rapid experiments using the scientific method and how to learn to see and eliminate waste in business processes. Importantly, kaizen must operate with three principles in place: process and results (not results-only); systemic thinking (i.e. big picture, not solely the narrow view); and non-judgmental, non-blaming (because blaming is wasteful). Everyone participates in kaizen; people of all levels in an organization, from the CEO on down, as well as external stakeholders if needed. The format for kaizen can be individual, suggestion system, small group, or large group. Kaizen is a long term culture shift
- Kaizen often takes place one small step at a time, hence the English translation: "continuous improvement", or "continual improvement." Yet radical changes for the sake of goals, such as just in time and moving lines, also gain the full support of upper level management. Goals for kaizen workshops are intentionally set very high because there are countless examples of drastic reductions in process lead time to serve as proof of their practicality. The cycle of kaizen activity can be defined as: standardize an operation -> measure the standardized operation (find cycle time and amount of in-process inventory) -> gauge measurements against requirements -> innovate to meet requirements and increase productivity -> standardize the new, improved operations -> continue cycle ad infinitum . This is also known as the Shewhart cycle , Deming cycle, or PDCA. The "zen" in Kaizen emphasizes the learn-by-doing aspect of improving production. This philosophy is focused in a different direction from the "command-and-control" improvement programs of the mid-20th century. Kaizen methodology includes making changes and looking at the results, then adjusting. Large-scale preplanning and extensive project scheduling are replaced by smaller experiments in improvement, which can be rapidly adapted as new improvements are suggested.
- PDCA was made popular by Dr. W. Edwards Deming, who is considered by many to be the father of modern quality control; however it was always referred to by him as the "Shewhart cycle." Later in Deming's career, he modified PDCA to "Plan, Do, Study, Act" (PDSA) so as to better describe his recommendations. In Six Sigma programs, this cycle is called "Define, Measure, Analyze, Improve, Control" (DMAIC). PDCA should be repeatedly implemented, as quickly as possible, in upward spirals that converge on the ultimate goal, each cycle closer than the previous. This approach is based on the understanding that our knowledge and skills are always limited, but improving as we go. Often, key information is unknown, or unknowable. Rather than enter "analysis paralysis" to get it perfect the first time, it is better to be approximately right than exactly wrong. Over time and with better knowledge and skills, PDCA will help define the ideal goal, as well as help get us there. Velocity of change is a key competitive factor in today's world. PDCA allows for quantum breakthroughs (typical Western approach), as well as Kaizen (typical Eastern Lean approach with continuous improvement); thereby providing the best of both worlds. In this way, PDCA helps ensure the fastest rate of improvement; often a critical success factor. The power of Deming's concept is in its simplicity. While easy to understand, it is often difficult to accomplish on a on-going basis due to complacency, distractions, loss of focus, lack of commitment, re-assigned priorities, lack of resources, etc. While most claim full knowledge and on-going application, few have in-depth understanding, and even fewer practice PDCA on a consistent basis.
- PDCA (aka the Deming Cycle , Shewhart cycle , or Deming Wheel ) is an iterative four-step quality control strategyThe Shewhart Cycle PLAN establish the objectives and processes necessary to deliver results in accordance with the specifications . DO implement the processes. CHECK monitor and evaluate the processes and results against objectives and Specifications and report the outcome. ACT apply actions to the outcome for necessary improvement. This means reviewing all steps (Plan, Do, Check, Act) and modifying the process to improve it before its next implementation.
- The Joiner Seven Step Method – Brian Joiner – Deming Protégé - Retired Professor of Statistics and Director of Statistical Consulting, University of Wisconsin The Plan-Do-Check-Act cycle can (and should) be applied at all levels of improvement. However, it is useful to have a fuller, more detailed macro P-D-C-A that applies to the project as a whole. This provides us with: a framework with which we can visualize progress through a project, check-steps that allow us to see that we are not trying to proceed too quickly through part of the improvement process without having gained sufficient understanding, a means of documenting a project. One useful framework to do this is the "7 Step Model", developed by Joiner Associates ( Brian L. Joiner ). As well as providing a disciplined framework for progressing through a project, the 7 Step model provides a good framework for documenting a project.
- Possible hand out…print at business center