The document discusses the concept of Kaizen, which originated in Japan and means continual improvement. It explains that Kaizen involves making many small improvements over time through activities like quality circles and employee suggestion systems. This contrasts with Western ideas of innovation that focus on occasional large changes. The document also outlines how Kaizen can be applied through management systems, problem solving tools, and changing corporate culture to emphasize continuous incremental improvement.

1. KAIZEN
The Key to Japan’s
Competitive Success
By
VIVEK SHAH 11030241180
KINJAL GUPTA 11030241191
PALAK DABAS 11030241190
VINIT HANKARE 11030241179
VICTORY ABRAHAM 11030241186

2. TABLE OF CONTENTS
1. KAIZEN, The Concept
2. Improvement East and West
3. KAIZEN Management
4. The KAIZEN Approach to Problem Solving
5. KAIZEN, The Practice
6. Changing the Corporate Culture

3. KAIZEN
The Concept

5. RECTIFICATION CONTINUAL
IMPROVEMENT
INNOVATION DAY-TO-DAY

6.  The story of the Kaizen miracle started in the
1930s. Sakichi Toyoda, founder of Toyota, which
manufactured automatic looms at the time
 In 1950 Toyota implemented quality circles leading
to the development of Toyota’s unique “Toyota
Production System”.
 These continual small improvements (Kaizen) add
up to major benefits. They result, for example, in:
faster delivery, lower costs, and greater customer
satisfaction.
 In 1986 Masaaki Imai introduced to the Western
world the Japanese term Kaizen and made it famous
through his book, Kaizen: The Key to
Japan's Competitive Success.

8. Three Award in Sumo Tournament ;
- An outstanding performance award
- A skill award
- A fighting spirit award
Focus more on process
Rather than result !!!

9. Improvement
East & West

10. TRADITIONAL METHOD VS KAIZEN

11. Continuous Improvement
KAIZEN
INNOVA
TION
Breakthrough
Science Technology Design Production Market
Innovation KAIZEN

12. KAIZEN 1 INNOVATION
Long term Short term
Effect
Un-dramatic Dramatic
Small steps Pace Big steps
Time Intermittent &
Continuous & incremental
frame non incremental
Gradual & consistent Change Abrupt & volatile
Everybody Involvement “Champion”
Collectivism,
Rugged individualism,
group efforts, systems Approach individual ideas & efforts
approach // YIS//062709//

13. KAIZEN 2 INNOVATION
Maintenance & Scrap
Mode
Improvement & Rebuild
Conventional know-how & Technological breakthroughs,
state of the art
Spark new inventions, new theories
Little investment Practical Large investment
Great effort to maintain Requirements Little effort to maintain
Effort
People Technology
orientation
Process & efforts for Evaluation
Results for profits
better results criteria
Economic
Slow growth economy Fast growth economy
condition
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14. Standard
Maintenance Innovation
Actual
Standard
Maintenance
Innovation Actual
Time
Actual
KAIZEN
Standard
Innovation + Kaizen Actual
KAIZEN
Innovation Standard
Time
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16.  Widely applicable – Can be used in both
manufacturing and non-manufacturing
environments
 Highly effective & results oriented. Kaizen
events will generate quick results,
Measurable results, Establish the baseline,
and measure the change!!!
 A Learning Experience – Every member of
a Kaizen Team will walk away from the
event learning something new! !
 Team based & cross functional – Team
members can be from various functions of
the business. Top management participation
is encouraged.

17. KAIZEN
MANAGEMENT

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

19. JOBS FUNCTION PERCEPTIONS
Japanese perceptions Western perceptions
Top management
Middle management
Supervisors
Workers

20. Middle
Top
Management Supervisors Workers
Management
and Staff
Determine to Use Kaizen in
Deploy and Engage in Kaizen
introduce Kaizen as functional rules
implement Kaizen through the
a corporate strategy goals as directed by suggestion system
top management Formulate plans for and small group
through policy Kaizen and provide activities
Provide support and deployment and guidance for workers
direction for Kaizen cross functional
by allocating management
resources Practice discipline in
Improve the workshop
Use Kaizen in communication with
Establish policy for functional capabilities workers and sustain
Kaizen and cross high morale
functional goals Engage in
Establish, maintain,
and upgrade standard Support small group continuous self-
activities (such as development to
Realize Kaizen goals
quality circles) and become better
through policy Make employees
the individual problem solvers
deployment and Kaizen-concious
audits through intensive suggestion system
training programs
Introduce discipline in
Build system, Help employees the workshop Enhance skills and
procedures, and develop skills and job performance
structures conducive tools for problem expertise with cross
Provide Kaizen
to Kaizen solving education
suggestions
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21. 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 performance will not be able to
negotiate with management on such labor-
related subjects as technological innovation,
personnel transfers, and scrapping facilities

22. The KAIZEN APPROACH
to PROBLEM SOLVING

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

24. Seven Statistical
tools New Seven tools
• Pareto diagrams • Relations diagram
• Cause & Effect diagram • Affinity diagram
• Histograms • Tree diagram
• Control charts • Matrix diagram
• Scatter diagram • Matrix data-analysis diagram
• Graphs • PDPC (Process Decision
Program Chart)
• Check-sheets
• Arrow Diagram
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25. VELOCITY FOR COMPETITIVE
ADVANTAGE
Standardization
Process optimization
Elimination of waste
Evolution in people and technique
Durable training // YIS//062709//

26. KAIZEN
the PRACTICE

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

28. ACT
PLAN
Standardi- Definitions
zation of problem
CHECK Confirmation Analysis of
of results problem
Identificati
Implemen-
on of
tation
causes
Planning
DO
counter-
measures

29. Seiton (Set in order)
2
Seiri 1 3 Seiso (Shine)
(Straighten up)
5s
Shitsuke 5 4 Seiketsu
(Sustain) (Standardize)

30. Who What Where When Why How
Why does he do
Who does it? What to do? Where to do it? When to do it? How to do it?
it?
Where is it
Who is doing it? What is being done? When is it done? Why do it? How to do it?
done?
Who should be What should be Where should When should How should it be
Why do it there?
doing it? done? It be done? it be done? done?
Can this method
Who else can do What else can be Where else can What other time
Why do it then? be used in other
it? done? it be done? can it be done?
areas?
Where else
Who else should What else should be What other time Why do it that Is there any other
should it be
do it? done? should it be done? way? way to do it?
done?
Where are 3- Are there any 3- Are there any
Who is doing 3- What 3-Mus are Are there any time
Mus being Mus in the way of 3-MUs in the
Mus? being done? 3-Mus ?
done? thinking? method?

31. SEVEN
WASTES !!

32. Shortened lead time
Reduced time spent on non-process
work
Reduced inventory
J
I
T Better balance between different
processes
Problem clarification

33. CHANGING
the CORPORATE CULTURE

34.  Canon of Japan implemented in 1975 to
excel over international competition and
expand its operations on a global scale in 6
years.
 Canon put in place a special matrix
management system with numerous small
group activities.
 The purpose was to eliminate wastes,
revitalize the workforce, and improve
continuously in all business processes.
 Techniques like Canon Production System,
Quality Assurance, Production Assurance,
and Personnel Training were introduced.
Canon achieved an astonishing 3% per
month productivity increase.

35.  Fidelity Investments offers various financial
services.
 Chairman and CEO, Johnson, introduced
Kaizen in Fidelity by setting up a separate
group to promote Kaizen.
 Each division was defined as a separate
company or business unit.
 Employees were motivated to the maximum,
leadership qualities were encouraged, and
progress on goals was evaluated on monthly
and quarterly basis for adjustments and
refinements.
 Customer satisfaction and profitability
improved in long-term.

36.  Gold Seal Engineering Products is an
India-based automotive spares
manufacturer, with exports to several
countries.
 The 5S principles of Kaizen were
implemented to cut down the production
set-up time by 33%.
 In 6 months, production space increased
45%, lead time was down by 25%, scrap
was reduced by 75%, machine down time
dropped by 60%, and response time got
reduced by 42%.

37.  Resistance to change
 Lack of proper procedure to
implement
 Too much suggestion may lead
to confusion and time wastage

38.  Kaizen Reduces Waste- like
inventory waste, time waste,
workers motion
 Kaizen Improves space
utilization, product quality
 Results in higher employee
moral and job satisfaction, and
lower turn-over.

39. KAIZEN PHILOSOPHY
“Be it our working life, our social
life, or our home life, deserves to
be constantly improved”
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