This document provides an overview of continuous improvement strategies like Kaizen, 5S, and the Toyota Production System (TPS). It discusses key aspects of each including: - The 5 pillars of TPS: JIT, Jidoka, Kaizen, Heijunka, and respect for people. - Components and benefits of 5S including sort, set in order, shine, standardize, and sustain. 5S aims to create a clean and organized workplace. - Guidelines for implementing the different elements of 5S like sorting unnecessary items, clearly labeling storage areas, and establishing cleaning procedures and responsibilities. - Using a PDCA approach for continuous 5S implementation including planning, doing, checking

1. Institute of Management Consultants Myanmar
KAIZEN / Continuous Improvement
for Organization
Ms. Ngwe Nyunt Shin @ Shin Lay

2. u Program Outlines
• Productivity
• 5S for workplace
• TPS: Toyota Production System
• Quality Control

3. Institute of Management Consultants Myanmar
Productivity

4. u What is productivity?
Raw
materials,
Machines,
Equipment,
Energy,
Workers
+Products
+Services
Value Added
Input
Company Activities
Output
Productivity = ----------------------------------------------------
Input (raw materials, energy, workers, etc.)
Output (products, services, etc.)
• “Productivity” means how to effectively use “Inputs” to
produce ”Outputs”.
• The ways of increasing productivity are, e.g. to increase
output factors or decrease input factors.

5. u Quality Vs Productivity
100 – 1 = 99
100 – 1 = 0
X

6. u Key factors of Quality and Productivity Improvement
“Management”
Leadership/Commitment
Long term view of management
Human centered management
Excellent business process
“Workers”
Positive Work Attitude
Motivation
Teamwork
Skill Upgrading
Improvement of Productivity & Quality
Sustainable Customer Satisfaction

7. u 5S & KAIZEN Application
Advanced
Integrated
Productivity &
Quality Improvement
KAIZEN
(Continuous Improvement)
Foundation Building
(5S= Clean Workplace)
ISO, TPM,
TQM

8. u Philosophy
One can do better today than yesterday, and
that tomorrow will be better than today.

9. Institute of Management Consultants Myanmar
5S for Office

10. u 5S
o 5S is a kind of discipline to keep working environment safe
and clean for the improvement of productivity, quality and
safety.
o 5S is a Japanese workplace organization methodology which
which aims to achieve a clean, neat and properly organized
workplace through employees’ initiatives.

11. u Understanding 5S
u SEIRI/Sort/Straighten up
Clearly separate necessary things from unnecessary ones and discard
unnecessary ones.
u SEITON/Set in order/Put things in order
“ A place for everything and everything in its place”. Arrange necessary
items in good order so that they may be easily picked up for use. (A
contest for searching documents or materials with 30 second)
u SEISO/Shine/Clean up
To clean and inspect the workplace thoroughly so that there is no dust on
the floor, tables or office rooms. (Individual cleaning responsibility).
Set aside time for cleaning (e.g. annual cleaning day that involves all,
cleaning should be done together with inspection.
It is not only to clean the workplace but to detect every kind of wastes and
problems through complete cleaning.
Assign a person who is in charge of cleaning of each workplace and
machine. Establish the cleaning standard (Where: Place, Who: Person in
charge, When: Frequency, How: Cleaning method)

12. u Understanding 5S
u SEIKETSU/Standardize/Cleanliness
To keep the workplace well maintained by practicing 3S of SERI, SEITON
and SEISO all the time. To set and maintain a high standard for a
consistently organized work environment (Rule for keeping 3S)
§ Create a schedule for housekeeping
§ Form 5S cross-functional teams to brainstorm on possible
housekeeping projects
§ Reward and recognize people for their 5S efforts
§ Learn best practices by other companies
u SHITSUKE/Sustain/Discipline
Conduct in-house training or train people how to observe self-discipline
and practice the 5S system continuously so that it would become a habit
and be ingrained in the culture of the organization. (Do 5S Daily)
o The important point of Shitsuke is forming the habit of practicing 3S.
o Change your mindset and take pride in maintaining a clean and
organized workplace

17. u Objectives & Benefits of 5S
u P, Q, C, D, S, M (Productivity, Quality, Cost, Delivery, Safety &
Morale)
u Work environment becomes cleaner, more productive, more
efficient, organized and safer
u Improvements are visible to everyone, including your
customers and partners
u Reduce time of looking for something
If it is necessary to look for materials or tools after starting work,
there could be a big loss of time.
u Reduce Cost
If the workplace is clean and well organized, work efficiency could
be raised and quantity of defective services could be decreased.
Accordingly,service cost will be reduced.
u Shorten the delivery time
If the shop floor is dirty and in disorder, shortage of raw materials
will lead to delay of delivery.

18. u Objectives & Benefits of 5S
u Secure safe working condition
Raw materials or products that are not put properly, water or oil
split on the floor may cause occupationalaccidents.
u Employer’s morale
Raise employer’s morale, consequently raise productivity.
u 5S is the basis of production management
Work management, Production control, Quality management,
Productivity management
u Projects a good corporate image, which will in turn
generate more business

19. u 7 Wastes in the office (7 MUDA)
o Over Production – More information than the customer needs, more
information than the next process needs, creating reports no one reads, or
making extra copies.
o Transportation – Unnecessary movement of people or parts between
processes. Retrieving or storing files, carrying documents to and from shared
equipment, taking files to another person, or going to get signatures.
o Motion – Unnecessary movement of people within a process. Searching for
files, extra clicks or keystrokes, clearing away files on the desk, gathering
information, looking through manuals and catalogs, or handling paperwork.
o Waiting – People or parts that wait for a work cycle to be completed. Waiting
for faxes or a copy machine, for the system to come back up, for a customer
response, or a handed-off file to come back.
o Unnecessary Processing and over Processing – Creating reports,
repeated manual entry of data, use of outdated standard forms, or use of
inappropriate software. Processing beyond the standard required by the
customer.
o Inventory – Raw materials, work in progress which is not having value added
to it. Files waiting to be worked on, open projects, too many office supplies, e-
mails waiting to be read, or unused records in the database.
o Defects/Rework – Data entry errors, pricing errors, missing information,
missed specifications, or lost records

20. Contents
• 5S
• Understanding 5S
• Objectives and Benefits of 5S
• 7 Wastes (7 MUDA)
• Overview of 5S implementation (P-D-C-A approach)
• Roadmap of 5S implementation
• Plan
• Do
• Check
• Act
• Conclusion

21. u Overview of 5S implementation
(P-D-C-A approach)
u Plan
u Preparation
u Provide training & education for everyone
u Form 5S team
u Set up 5S zone
u Determine 5S objectives, goals and implementation phases
u Make 5S action plan and launch 5S

22. u Overview of 5S implementation
(P-D-C-A approach)
u Do
u Sort
u Identify what is necessary
u Set in order
u Define what and how to arrange
u Shine
u Identify dirt sources
u Identify root causes
u Take an action to eliminate dirt sources and root causes
u Standardize
u Who is responsible?
u What actions to take to maintain the desired condition?
u When must those action be taken?
u Where must they apply?
u What procedures need to be followed?
u Sustain
u Everyone understand, obey and practice the rules and
procedures

23. u Overview of 5S implementation
(P-D-C-A approach)
u Check
u Assessment
u Conduct internal 5S audit
u Benchmark within the department and with other organization
u Ensure the established 5S procedures and follow them thoroughly
u Act
u Continuous Development
u Develop 5S practices into a HABIT
u Compare actual goals with set goals
u Reward and recognize efforts of staff
u Register 5S certification
u Review Plan-Do-Check-Act Cycle

24. Roadmap for 5S implementation

25. u Plan
u 5S training
u 5S awareness for Top Management
u 5S awareness for Employees
u Step by step 5S implementation for everyone
u Step by step internal 5S audit
u Official announcement of 5S
u It is essential that the top management make official announcement of
5S to all employees.
u Promotion poster of 5S
u Big cleaning
u Formation of the organization of 5S
u Objectives: To enhance total participation at all levels of employees and
to develop a continuous improvement culture and best performance
spirit in the teams.

26. u Do
u President
q 5S committee (consists of top management and the managers of each department)
The role of the 5S committee is:
u Decision-making of 5S activity
u Leveling of 5S activity of each group
u Assisting the facilitator
u Diagnosis by the top management
q 5S Facilitator
5S committee will assign the 5S Facilitator, who is the key person. His/her role is:
u Instructor of the 5S training for all workers
u Preparation of 5S promotion pamphlet, poster, etc.
u Secretariat of the 5S committee
u Advisor to all 5S group
u Promoter and reporter of 5S activity
u Record-making of 5S activity
v Managers
ü 5S groups
5S group leader
u Developing the implementation plan & 5S implementation
at his workplace
u Every member must know their own 5S responsibilities
and perform accordingly.

27. u Do
u Guidelines for practicing SORT (SEIRI)
u Disposal Standard
u Potential impacts
u Unwanted items are eliminated.
u Searching time is reduced.
u Working environment is improved.
u Space utilization is maximized.
Unnecessary items Required action
Items having no value and easy to
dispose
Throw away immediately
Items having some sales value Look for buyer who offers the best price
Items having no value and their
disposal is costly
Work out the least costly and safest way
for disposal
Necessity Example Method of arrangement
Low +No use in the past year
+Use only one time in the last 6-
12months
+Discard all of them
+Store in a remote place
Medium +Once in the last 2-6 months
+More than once in a month
+Store in the central
+Storage in the workplace
High +Once a week
+Everyday
+Every hour
+Store close to the
workplace

28. u Do
u Guidelines for practicing SET IN ORDER (SEITON)
“Set in order” reflects a very popular saying: “A place for everything and everything in
it’s place”.
u Set in order includes activities such as:
u Put names and numbers on all jigs and tools.
u Store tools close to the machine with which they will be used according
to sequence of work operations.
u Organize files and store them using color cord to make it easy to identify
materials at glance.
u Store similar items together using racks or shelves.
u Store different items in separate rows.
u Use bins to put in small items.
u Use color for quick identification of items.
u Label clearly each item and its storage area (Visual Control)
u Use see-through cover for better visibility.
u Create tool boards.

29. u Do
u Guidelines for practicing SET IN ORDER (SEITON)
u Potential impacts:
u Necessary items should be identified and positioned in the right place and
location.
u Unwanted items should be eliminated.
u Searching time could be reduced.
Necessary items Required action
Items frequently used Must be place near the point of
use
Items sometimes used Can be place further away
Items not used at all but must
be kept
Must be stored separately with
clear identification

30. u Do
u Guidelines for practicing SHINE (SEISO)
It ensures a more comfortable and safer workplace, as well as better visibility, which
reduces searching time and ensures higher quality work, product or service. Everyone
enjoys working in a clean environment which morale and increases productivity.
Step1: Assign cleaning area to every employee.
Step2: Determine what is to be cleaned.
Step3: Determine the method.
Step4: Prepare cleaning tools and materials.
Step5: Do cleaning.
u Potential impacts:
Higher quality work and products.
More comfortable and safer work environment
Better visibility and reduced searching time
Lower maintenance expense
To make a positive impression for visitors

31. u Do
u Guidelines for practicing STANDARDIZE (SEIKETSU)
To ensure a high standard workplace organization by continuous employment of 3S (SORT, SET
IN ORDER and SHINE).
The checklist must serve as visual signpost to ensure that the daily 3S requirements are carried
out habitually as best practices in the work area. Items to be included in the check list:
u Job responsibilities that includes:
u Who is responsible? (ownership)
u What actions to take to maintain the desired condition?
u When should those action be taken?
u Where should they apply?
u What procedures need to be followed?
u Work-in-progress/inventory rules
u Cleaning procedures
u Maintenance schedules
u Regular work activities integrated with 3S duties.
v Potential impacts:
u Better workplace standards.
u Better visual control systems.
u Establishment of rules and standard operation procedures (SOP)
u Information sharing on standards.
u Improvement in operation and workflow.

32. u Check – 5S Audit
u Objectives: To ensure that the organization could assess its strength for
improvement.
u The 5S self-assessment is to be monitored and documented through 5S
internal Audit methodology.
u Organizations that have successful 5S activities measure their performance
through periodical audits using 5S checklists. Results of the audits should be
displayed at the 5S corner of every department. This creates an atmosphere of
friendly competition and will help instill pride in the teams.
u This evaluation and competition must be linked with a reward system; most
successful organizations offer monthly rewards for the winning teams in the
various 5S categories.

33. u Act
u Importance of KPIs
The self-assessment and 5S certification naturally drives the
organization goal to continuously improve on the quality and the
cost effectiveness of providing the product or service through
systematic guide using Key Performance Indicators (KPIs).
u The KPIs most commonly used are:
Productivity, Inventory levels, Lead time, Number of accidents,
Machine breakdown, Searching time, Rework ratio, Customer
complaints

34. u Establish Standards (E.g. Conference Rooms)
u No food is allowed in the conference room
u Doors should be closed during all meetings
u Cell phones should be put on silent before a meeting starts
u White boards must be cleared at the end of the meeting
u All chairs must be put back in place and if extra seating is
brought in it must be removed at the end of the meeting
u The meeting organizer is responsible for making sure the
conference room is clean and returned to standards at the end
of each meeting. (accountability)

35. u Kaizen (Continuous Improvement)
u 5S utilizes Kaizen which is a philosophy of make steps small,
actions be specific and time agreed but continuous improvement
by whole organization in team.
u E.g.: Kaizen Proposal: Group, Name, Date, Current status and
its problem, Proposal, Expected benefits (Be specific)
u Kaizen presentation
u Kaizen rewarding at company ceremonies

36. u Conclusion
The 5S management is one of the preliminary steps for an
organization to practice high level tools such as, Total
Productive Maintenance (TPM) to meet the high standards of
customer expectations.

37. Institute of Management Consultants Myanmar
TPS

38. WHAT IS TPS
u Toyota Production System
u A consistent way of thinking
u A total management philosophy
u Focus on total customer satisfaction
u An environment of teamwork and improvement
u A never-ending search for a better way
u Quality built in process
u Organized, disciplined work-place
u Evolutionary

39. TOYOTA WAY
u KAIZEN Continuous Improvement
u Respect for people, G. Convis, Toyata Kentuckey
u JIT/One-piece-flow/PULL system/Inventory Control
u Elimination of 7 waste (non-value adding works: Overproduction,
Inventory, Waiting, Motion, Transportation, Rework/Defects, Over
processing)
u JIDOKA Autonomation
u Process oriented than reactive to results. Learning Organization “We don’t
just build cars. We build people.”

40. JUST-IN-TIME
u Right time
u Right amount
u Right material

41. Work Sampling
u Main Work
u Preparation
u Shop Allowance
§ Looking for documents
§ Waiting for instructions
§ Waiting for files/materials
§ Meeting
u Work Allowance
§ Reading specifications
§ Inspection
u Personal Allowance
§ Washing hands
§ Drinking Water
§ Going to toilet
u Non-work
§ Chatting
§ Unapproved access
§ Walking unknown reason
§ Absent unknown reason
Working ratio (Main work & Preparation- 9% is high) should over 75%, Shop
allowance should be less than 10%, Non work ration 7% is extremely high.
u Train employees work discipline and morals
Main work
54%
Preparation
9%
Delay: Work
Allowance
9%
Delay: Shop
Allowance
16%
Delay:
Personal
Allowance
5%
Non-work
7%
EXAMPLE

42. Line Balance Improvement (one of the key element of
JUST-IN-TIME production system)
u Line balance improvement concept
I. Operation Kaizen Method: Balancing by shortening the cycle time
II. Shifting Method: Balancing by shifting part of the operation of
bottleneck process to another process
III. Absorption Method: Balancing by taking relate operations from
outside of the line in lighter burden processes
IV. Optimal Assignment Method: Balancing by appointing experienced
employees to heavier processes and inexperienced ones to lighter
processes
V. Operation Increase Method: Balancing by increasing the number of
employees for heavier burden processes
VI. Move all of work elements: Move all work of elements to other
stations to eliminate the employee (eliminate one process)
u Effects: Leveling the tact time of each process, reduce and minimize
the WIP, increase the line capacity, smooth production flow

43. Autonomation or JIDOKA
u Stop Production Line to build in Quality
u Stop the line:
§ Production people hate to stop production. Volume of products
show their achievement.
§ Minor quality problem can be fixed later in more efficient way
§ It would affect the whole line, and problem solving might take
time.
u Do not pass defects to downstream. Fix them on the right spot.
Next step is My Customer!
u Organization Autonomation: To find cause of problems and fix them
u Check Organizational issues:
u Span of control: Group leader-team leader-line worker
u Role of those leaders and actual performance. “How are they helping
workers?”
u KAIZEN as habit

44. Autonomation or JIDOKA
u When ANDON alarm is released, (Abnormality Detected)
1. Stop
2. Leader/QC go to the spot and see the problem
3. Understand the fact of the problem
4. Ask 5-Why (Why in five times)
5. Take Action
u Example of 5-Whys
u To err is human; to blame the next guy is even more so.
u Fix the problem, not the blame. (Root cause analysis)
Problem Countermeasures
A puddle of oil on the floor
1 Machine is leaking oil Clean up the oil
2 Gasket is deteriorated Replace the gasket
3 Gasket material is inferior Change specifications of gaskets
4 The offered price was cheap Change purchasing policies
5 Supplier selection done on short
term cost saving
Change supplier evaluation
policy

45. Autonomation or JIDOKA
u See and understand on the shop floor.
~ Genchi-Genbutsu
u Observe the production floor without preconceptions and with a
blank mind. Repeat “why” five times to every matter.
~Taiichi Ohno

46. PULL CONCEPT
u Put customer first. Next step is my customer.
WHSupplier Production WH Customer
Raw Mate
Inventory
In-process
Inventory
Product
Inventory

47. INVENTORY MANAGEMENT
u Inventory: Raws + in-process + Product + Sales WH
u Involving Customer/supplier Sales patterns, customer habits,
nature of products.
WHSupplier Production WH Customer

48. INVENTORY MANAGEMENT FOR PRODUCTION PLANNING
u #1 ESTABLISH INVENTORY POLICY
u Sales: Stability, seasonality, predictability, delivery size, cost of missed
sales, etc.
u Production: Lead time, reliability, raw mate availability, Plant availability
& reliability
(e.g. Raw material 1 month (0.5-1.5), Products 0.5 month (0.3-0.8), Some
products before X-mas, 3)
Production WH Customer

49. INVENTORY MANAGEMENT FOR PRODUCTION PLANNING
u #2 MEASURE & CONTROL
u Sales data
u Inventory data
u Production data
u Missed sales due to empty stock
Production WH Customer
Production Planning
Missed opportunity

50. INVENTORY MANAGEMENT FOR PRODUCTION PLANNING
u #3 RE-EVALUATE, REVIEW POLICY
u Inventory target – sales-days to inventory control
u Sales trends by product
u Missed opportunity
u Supplier/customer changes
Production WH Customer

51. SECURING CONTINUOUS IMPROVEMENT
Observe Rules
AnalysisStandardization
Improvement
Comfortable work
place under
Observed Rules
Neglected
Rules
Communicate
employees
Change Rule
Bad Employees Bad Rule
• You show by yourself
• Train & teach them
• Let them do
• Praise them

52. Institute of Management Consultants Myanmar
Quality Control

53. Quality Control
u Quality is customer satisfaction.
u Quality is a shared responsibility of the team, not just the QA’s or QA Manager.
u Quality is not an activity/role, it’s a mindset.
u Why Quality?
Reasons for quality becoming a cardinal priority for most organizations:
§ Competition – Today’s market demand high quality products at low cost.
Having “high quality” reputation is not enough! Internal cost of maintaining the
reputation should be less.
§ Changing customer – The new customer is not only commanding priority
based on volume but is more demanding about the “quality system.”
§ Changing product mix – The shift from low volume, high price to high volume,
low price have resulted in a need to reduce the internal cost of poor quality.
§ Product complexity – As systems have become more complex, the reliability
requirements for suppliers of components have become more stringent.
§ Higher levels of customer satisfaction – Higher customers expectations are
getting spawned by increasing competition.

54. The Deming Philosophy
Improve quality Decrease cost because
of less rework, fewer
mistakes.
Productivity improves
Capture the market
with better quality
and reduced cost.
Stay in
business
Long-term
competitive
strength

55. Customer Complaint on Quality
Production Inspection Quality Complaint
Good x Good = No
Fail x Good = No
Good x Fail = No
Fail x Fail = Complaint
u Inspection helps improve production process

56. Complete quality at each step
• Customer Feedback: Comments & Complaints:
good opportunity to improve quality

57. Root Cause Analysis: Some tools
u 5 Whys:
As quick investigation. Recurrence prevention.
u Swiss cheese model:
Fix defensive barriers
u Fishbone analysis:
Material, Manpower, Machine/Equipment, Environment, Management,
Methods, Management System
u Brainstorming:
Individual or Team

58. Organization Incidents
u Swiss cheese model
Worst
Case
Incident
Intention
Goal

59. Fishbone Analysis/ Cause and Effect Diagram

60. Incident
Unwanted event
Immediate Action
• Discount
• Replace product
• Apology visit
Firefighting
Cause finding
Action Planning
Implementation
Happy Customers
Happy Employees
RecurrencePrevention
• Safety incident
• Quality problem
• Angry customer
• Machine Failure
Focus on Firefighting Focus on Recurrence Prevention
• Angry customer! Urgent! • Need to study. May wait.
• Reactive • Proactive
• High cost/low throughput • Low cost in long term
• High failure rate • Low failure rate
• Focus on short term • Focus on long term

61. Training
u We can learn from minor/near miss incident. For possibly major
incident in future. Do not wait for major incident.
u On-the-Error Training, Learn from Failure
u Regular Employee Training
Most of our product/service defect happen in our knowledge.
Good communication in the team can reduce defects.

62. Thank You!
No. 258/262, Strand Road, 12th Floor,
Classic Strand, Pabedan Township,
PO 11141, Yangon, Myanmar.
Tel: +95 1 256425. 248237
Fax: +95 1 249824
E-mail: info@imcmyanmar.org.mm
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