Ever wonder how continuous operations development can help your company scale and create a positive culture of engaged team members? Kaizen is your answer. In this presentation for the Gazelles Network by the former Senior Executive Officer of Toyota Motor Asia Pacific, Hilary lays out the steps to begin your first Kaizen project and dispels some myths around Kaizen along the way.

1. K A I Z E N & O P E R A T I O N S D E V E L O P M E N T
KAIZEN OPERATIONS
DEVELOPMENT AND GROWTH
TO Y O TA S E N I O R E X E C U T I V E
O F F I C E R , H I L A RY C O R N A

2. K A I Z E N & O P E R A T I O N S D E V E L O P M E N TK A I Z E N & O P E R A T I O N S D E V E L O P M E N T

3. K A I Z E N & O P E R A T I O N S D E V E L O P M E N T
WHY KAIZEN FAILS
Organizatio
n Structure
Mindset
Know-How

4. K A I Z E N & O P E R A T I O N S D E V E L O P M E N T
THE 4 PARTS
Kaizen Need
Application Team

5. K A I Z E N & O P E R A T I O N S D E V E L O P M E N T

6. K A I Z E N & O P E R A T I O N S D E V E L O P M E N T
改善
KAIZEN
Kaizen
Part 1

7. Kaizen
Part 1
K A I Z E N & O P E R A T I O N S D E V E L O P M E N T

8. K A I Z E N & O P E R A T I O N S D E V E L O P M E N T
Kaizen
Part 1

9. K A I Z E N & O P E R A T I O N S D E V E L O P M E N T
Kaizen
Part 1

10. K A I Z E N & O P E R A T I O N S D E V E L O P M E N T
Kaizen
Part 1

11. That’s me
Kaizen
Part 1
K A I Z E N & O P E R A T I O N S D E V E L O P M E N T

12. K A I Z E N & O P E R A T I O N S D E V E L O P M E N T
SUCCESS =
CAN THE TEAM SUSTAIN
KAIZEN ON THEIR OWN?
Kaizen
Part 1

13. Kaizen
Part 1
Not me
K A I Z E N & O P E R A T I O N S D E V E L O P M E N T

14. Kaizen
Part 1
K A I Z E N & O P E R A T I O N S D E V E L O P M E N T

15. Kaizen
Part 1
K A I Z E N & O P E R A T I O N S D E V E L O P M E N T

16. K A I Z E N & O P E R A T I O N S D E V E L O P M E N T
KAIZEN PDCA
8 STEPS OVERVIEW
Step 6.
See
Counter-
measures
Through
Step 7.
Monitor Both
Results and
Processes
Step 8.
Standardize
Successful
Processes
Step 5.
Develop
Counter-
measures and
Process KPI
Step 4.
Root Cause
Analysis
Step 3.
Target
Setting
Step 2.
Break Down
the Problem
Step 1.
Clarify the
Problem
ActCheckDoPlan
Kaizen
Part 1

17. Poorly Planned
(Trial & Error)
D C A
Man-hour
Up front
Planning Less man-hour
More man-hour
P
Amount of time wasted!!
PDCA Benefits:
• Save time in solving complicated problems
• Minimize trial & error
Need
Part 2

18. K A I Z E N & O P E R A T I O N S D E V E L O P M E N T
KAIZEN PDCA & OPERATIONS
DEVELOPMENT IS A WAY TO
STANDARDIZE PROACTIVE
PROBLEM SOLVING
Kaizen
Part 1

19. K A I Z E N & O P E R A T I O N S D E V E L O P M E N T

20. Need
Part 2
K A I Z E N & O P E R A T I O N S D E V E L O P M E N T

21. K A I Z E N & O P E R A T I O N S D E V E L O P M E N T
Need
Part 2
70%…of Fortune 1000 companies ten years ago are no longer in
business –unable to adapt to change.

22. K A I Z E N & O P E R A T I O N S D E V E L O P M E N T
Kaizen
Part 1
Need
Part 2

23. K A I Z E N & O P E R A T I O N S D E V E L O P M E N T
Need
Part 2

24. K A I Z E N & O P E R A T I O N S D E V E L O P M E N T
KAIZEN PDCA & OPERATIONS
DEVELOPMENT EMPOWERS
YOUR TEAM TO HELP MINIMIZE
THE PEAKS AND VALLEYS OF
GROWTH
Need
Part 2

25. K A I Z E N & O P E R A T I O N S D E V E L O P M E N T

26. K A I Z E N & O P E R A T I O N S D E V E L O P M E N T
現場
GENBA
Part 3
Application

27. K A I Z E N & O P E R A T I O N S D E V E L O P M E N T
KAIZEN PDCA
8 STEPS OVERVIEW
Step 6.
See
Counter-
measures
Through
Step 7.
Monitor Both
Results and
Processes
Step 8.
Standardize
Successful
Processes
Step 4.
Root Cause
Analysis
Step 3.
Target
Setting
Step 2.
Break Down
the Problem
Step 1.
Clarify the
Problem
ActCheckDoPlan
Part 3
Application
Step 5.
Develop
Counter-
measures and
Process KPI

28. K A I Z E N & O P E R A T I O N S D E V E L O P M E N T
HOW CAN KAIZEN BE APPLIED TO SALES?
Part 3
Application
Step 6.
1 month trial
of paper
version
Step 7.
Lost sales
reduced to 2%
from 10% in 3
mths
Step 8.
SOP
adapted &
implemented
3 months
later
Step 5.
FIFO method
unless cash
customer, no
special
privilege
Step 4.
No way of
prioritizing
insurance
applications
Step 3.
1% lost
sales
Step 2.
Problem lain
in the link
between
sales &
insurance
Step 1.
Customers
were
cancelling
orders up to
$1mil/yr
ActCheckDoPlan

29. K A I Z E N & O P E R A T I O N S D E V E L O P M E N T
HOW CAN KAIZEN BE APPLIED TO CASH
FLOW?
Part 3
Application
Step 6.
60 day
temporary
action plan
to backlog +
new SOP for
handover
Step 7.
80% of Past
Dues procured
within 30 days
& only 1 past
due for 60
days
Step 8.
SOP
adapted &
implemented
2 months
later
Step 5.
Develop
communicat
ion strategy
for post-
fulfillment
Step 4.
50% of
invoices had
mistakes
Step 3.
Procure
$46K & 0
past dues
Step 2.
Problem lain
in
communicati
on w/
customers
Step 1.
Tech
fulfillment
services past
dues totaled
$46K
ActCheckDoPlan

30. K A I Z E N & O P E R A T I O N S D E V E L O P M E N T
HOW CAN KAIZEN BE APPLIED TO HR?
Part 3
Application
Step 6.
Discuss with
individual
staff and
incorporate
into hiring
process
Step 7.
New staff
retained over 6
mth period
Step 8.
Reevaluate
quarterly to
collect 3
year data,
indefinitely
Step 5.
Revisit benefit
options and
performance
review process
Step 4.
Poor
communica
tion of
benefits to
new
employees
Step 3.
Average 2
years
serving by
millenials
Step 2.
Problem lain
in the
coaching
process of
managers
Step 1.
Low retention
ratio
ActCheckDoPlan

31. 8 STEPS
Step 2.
Break Down the Problem
Step 1.
Clarify the Problem
Step 3.
Target Setting
Step 4.
Root Cause Analysis
PROCESSES
1. Make the commitment
2. Set measurable, concrete, and challenging targets
1. Clarify the Ultimate Goal of your responsibilities & work
2. Clarify the Ideal Situation and Current Situation of your work
3. Visualize the gap between the Current Situation and the Ideal Situation
1. Break down the problem
2. Identify the Prioritized Problem
3. Specify the Point of Occurrence by checking the process through
GENCHI GENBUTSU
1. Examine the Point of Occurrence and think of possible causes without any
prejudice
2. Gather facts through GENCHI GENBUTSU and keep asking
“Why?”
3. Specify the root cause
1. Develop as many potential countermeasures as possible
2. Select the highest value-added countermeasures
3. Build consensus with others
4. Create a clear and concrete action-plan
Step 5.
Develop
Countermeasures
PlanPlan, Step 1: Clarify the Problem

32. K A I Z E N & O P E R A T I O N S D E V E L O P M E N T
Part 3
Application
QualityCost

33. K A I Z E N & O P E R A T I O N S D E V E L O P M E N T
Part 3
Application
Ideal
Situation
Current
Situation
Problem
Statement

34. 8 STEPS
Step 2.
Break Down the Problem
Step 1.
Clarify the Problem
Step 3.
Target Setting
Step 4.
Root Cause Analysis
PROCESSES
1. Make the commitment
2. Set measurable, concrete, and challenging targets
1. Clarify the Ultimate Goal of your responsibilities & work
2. Clarify the Ideal Situation and Current Situation of your work
3. Visualize the gap between the Current Situation and the Ideal Situation
1. Break down the problem
2. Identify the Prioritized Problem
3. Specify the Point of Occurrence by checking the process through
GENCHI GENBUTSU
1. Examine the Point of Occurrence and think of possible causes without any
prejudice
2. Gather facts through GENCHI GENBUTSU and keep asking
“Why?”
3. Specify the root cause
1. Develop as many potential countermeasures as possible
2. Select the highest value-added countermeasures
3. Build consensus with others
4. Create a clear and concrete action-plan
Step 5.
Develop
Countermeasures
PlanPlan, Step 1: Clarify the Problem

35. 8 STEPS
PROCESSES
1.With united efforts, implement countermeasures with speed and
persistence
2.Share information with others by informing, reporting and
consulting
3.Never give up. If you cannot achieve the expected results, try other
measures
1.Evaluate the results and the processes and share it with members
involved
2.Evaluate from three key perspectives: Customer’s, Toyota’s, and
Your Own
3. Understand the reasons of success and failure
1. Set successful processes as new standards
2. Share the new standard (YOKOTEN)
3. Start the next round of KAIZEN
Step 8.
Standardize Successful
Processes
Step 6.
See
Countermeasures
Through
Step 7.
Monitor Both
Results and Processes
Step 6 – 8 See Countermeasures
Through
Part 3
Application

36. K A I Z E N & O P E R A T I O N S D E V E L O P M E N T
Part 3
Application

37. K A I Z E N & O P E R A T I O N S D E V E L O P M E N T
Part 3
Application

38. K A I Z E N & O P E R A T I O N S D E V E L O P M E N T
Part 3
Application
KAIZEN PDCA & OPERATIONS
DEVELOPMENT IS APPLIED TO
ALL SIDES OF THE BUSINESS

39. K A I Z E N & O P E R A T I O N S D E V E L O P M E N T

40. K A I Z E N & O P E R A T I O N S D E V E L O P M E N T
Part 3
Application
>1,000,000…Can you guess the number of ideas Toyota gets ever year from
Genba?
Inward Empathy
Part 4
Team

41. K A I Z E N & O P E R A T I O N S D E V E L O P M E N T
Inward Empathy
Part 4
Team

42. Admissions Admin Activities Others
President
Manager
Directors
Others
Every Job Title / Grade
How to Practice PDCA
Every Function
P
D
C
A
P
D
C
A
P
D
C
A
P
D
C
A
P
D
C
A
P
D
C
A
P
D
C
A
P
D
C
A
P
D
C
A
P
D
C
A

43. K A I Z E N & O P E R A T I O N S D E V E L O P M E N T
GROWTH & PROFITABILITY
HAPPENS WHEN ALL PIECES OF
THE BUSINESS ARE
EXPONENTIALLY IMPROVING
TOGETHER AS A TEAM.
Team
Part 4

44. K A I Z E N & O P E R A T I O N S D E V E L O P M E N T
“No one has more trouble
than the person who claims to have no trouble.”
(Having no problems is the biggest problem of all.)
Taiichi Ohno

45. K A I Z E N & O P E R A T I O N S D E V E L O P M E N T

46. K A I Z E N & O P E R A T I O N S D E V E L O P M E N T
改善
KAIZEN
“CHANGE FOR THE BETTER”