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Guide for
Planning &
Conducting
a Kaizen Event

© Operational Excellence Consulting. All rights reserved.
Contents
• Introduction
• Phase 1: Pre-event Preparation
• Phase 2: The Kaizen Event

• Phase 3: Post-event Follow Up

© Operational Excellence Consulting. All rights reserved.

3
What is Kaizen?
• The Japanese word “Kaizen” (改 善) means
change (KAI) to become good (ZEN).
Kai

Zen

改 善
Change

Good

© Operational Excellence Consulting. All rights reserved.

5
10 Rules of Kaizen 1
1. Discard conventional rigid thinking about
production.
2. Think of how to do it, not why it cannot be
done.

3. Do not make excuses. Start by questioning
current practices.
4. Do not seek perfection. Do it right away if for
only 50% of target.
5. Correct mistakes at once.
© Operational Excellence Consulting. All rights reserved.

7
What is the Purpose of Kaizen?
• Kaizen activities focus on each process in order
to add value and eliminate waste

© Operational Excellence Consulting. All rights reserved.

9
Types of Waste
Intellect
Not using employees full
intellectual contribution

Over-processing
Adding excess value
when the customer
does not require it

Over-production
Producing more than what
the customer needs

Waiting
Employees waiting for
another process or
information

Motion
Extra physical/mental
motion that doesn‟t add
value

Waste

Defects
Reprocessing, or
correcting work

Inventory
Building and storing extra
services/products the
customer has not ordered

Transportation
Moving from one
place to another

© Operational Excellence Consulting. All rights reserved.

11
Benefits of Kaizen & Kaizen Events
• Empowers employees, enriches the work
experience and brings out the best in every
person
• Promotes personal growth of employees and the
company
• Improves quality, safety, cost structures,
delivery, environments, throughput and
customer service/satisfaction
• Provides guidance from employees, and serves
as a barometer for leadership
© Operational Excellence Consulting. All rights reserved.

13
Select an Area
• Choose an area that will have an impact but not pose
too many difficult problems in the beginning
• Each event will teach you things that will make the next
event smoother and easier to run

• As people gain experience in running events, it will
become possible to tackle more complicated problems
• Develop a selection criteria to select the best event to
start first

© Operational Excellence Consulting. All rights reserved.

15
Select a Problem for Improvement
• What to avoid with initial projects
 Out of control processes
 Unreliable equipment
 Incapable equipment

 Interdependent processes
 Improvement is not seen as necessary
 A process that may soon be obsolete

© Operational Excellence Consulting. All rights reserved.

17
Setting Goals
• Set a limited number of improvement goals to be
achieved during the event
• Prioritize multiple objectives
• Use S.M.A.R.T. criteria for goal setting:
 S=Specific; M=Measurable; A=Achievable; R=Realistic; T=Timely

• Goals should be challenging – requiring real creativity
• Team should be involved in setting improvement targets
• Objectives may not be completely met

© Operational Excellence Consulting. All rights reserved.

19
Team Leader Role
• Pre-Kaizen
 Review all pre-event information
 Tour target area

• During Kaizen
 Review progress against objectives daily
 Check status of team member activity. Update to-do
list.

 Keep everyone involved in specific improvement
activities

© Operational Excellence Consulting. All rights reserved.

21
Select the Team Members
• 4 to 10 people

• From across all levels and functions impacted
by the project
• Include experts – if they have open minds

• Include people with prior Kaizen experience
• Include outsiders from unrelated functions to
obtain different points of view

• Provide focused training to the team before the
event
© Operational Excellence Consulting. All rights reserved.

23
Facilities and Logistics
• Work Areas
 Notify people of upcoming Kaizen and purpose
 Floor/equipment layout – obtain/create a schematic

• Training / Meeting Rooms
 Reserve room
 Flipcharts, overhead projector, Post-it® notes, etc.

• Food and Refreshments

• Location for Celebration
© Operational Excellence Consulting. All rights reserved.

25
Collecting Information
 Pre-Event baseline data:
 Lead

Time, Touch Time, Cycle Time, Percentages, etc.

 Number

of people in the process

 Product/Service Demand by Type, by Shift; Customer
Demand (Takt Time)

 Quality Defects, Rework Loops, Inspection Points
 Cycle time by Product/Service
 Space Requirements, Distances Traveled; Before
Pictures
 Safety Issues; Future Plans; Past Failures at a Similar
Effort
© Operational Excellence Consulting. All rights reserved.

27
Conference Room or Gemba?
• Important to “go to the gemba”
 “Gemba”: where the process actually occurs

• Kaizen can happen right on the factory floor or
information can be gathered at the process

• Conference room can be used for analysis and
discussion
• Don‟t be afraid of going back to the gemba to
challenge and test ideas

© Operational Excellence Consulting. All rights reserved.

29
Pre-Event Communications
• Communication from Leadership should:
 Explain to employees what a Kaizen Event is and why
it is needed
 Explain how it supports Lean initiatives
 Focus on long-term improvement rather than shortterm disruption
 Discuss safety and ergonomic concerns
 Set expectations for step change, not insignificant
incremental improvement
When people are familiar with the Event prior to its occurrence,
they will be more receptive and productive during the Event
© Operational Excellence Consulting. All rights reserved.

31
Tips for Success (cont’d)
• Guide but don‟t steer – allow divergent points of
view
• Do not under plan
• Be sure you are clear on the expectations from
the Event
• Be sure each team member understands
expectations from the Event

• Understand the roles of team members, SMEs,
Executive Sponsor, and yourself
© Operational Excellence Consulting. All rights reserved.

33
Pre-event
Preparation
Checklists

© Operational Excellence Consulting. All rights reserved.
Two Weeks Before Event…


Finalize Team Membership
 Should be personally invited by the Executive Sponsor/Team Leader



Define Event Schedule
 What training modules should be used?
 Develop Event agenda
 Determine time and place for mid-week reports and final Report Out



Develop Team Charter
 Get buy-in from Executive Sponsor
 Approval from PMO (to prevent duplication/coordinate lessons learned)



Publish Charter & Agenda to all Event Team Members and PMO



Send out „Invitation to Event‟ email to each member and Sponsor



Reserve a room for the week and Final Report Out



Reserve overhead projector



Make food arrangements – Lunch and coffee breaks
© Operational Excellence Consulting. All rights reserved.

37
One Day Before Event…


Verify the room is setup properly for your Event… U-shaped works nicely



Verify meals and snacks are confirmed



Verify all supplies and equipment



Coordinate with the Executive Sponsor



Coordinate with the Team Leader



Dry Run the Agenda



Rehearse presentation and timing



Prepare notes



Print handouts, make copies



Prepare Attendance Sheet (one for each day)



Prepare Day 1 Agenda on flipchart



Post Good Meeting Practice guidelines on meeting room wall
© Operational Excellence Consulting. All rights reserved.

39
3
THE
KAIZEN EVENT

© Operational Excellence Consulting. All rights reserved.
Kaizen Event Process
1. Orientation

5. Report &
Celebrate

4. Make the
Improvements

2. Understand
Current Situation

3. Develop
Future State
Design

© Operational Excellence Consulting. All rights reserved.

43
Kaizen Event Agenda*
Day 1 –
Orientation

Morning

• Welcome &
Introductions
• Set expectations
• Provide focused
training
• Identify the Customer

Day 2 –
Understand
current
situation

Day 3 –
Develop
future state
design

• Analyze current state

• Future state design

• Brainstorm ideas

• Mid-week review

• Root cause analysis
• Prioritize solutions

• Implement
improvements

Day 4 –
Make the
improvements
• Implement
improvements

• Finalize future state

• Try out or simulate new
process

• Complete training on
standard work
• Final presentation

• Train participants

• Future state design

• Tweak design as
needed

• Define Kaizen Charter

Lunch

Afternoon

Day 5 –
Report &
celebrate

• Lunch & celebration

• Implement
improvements

• Create and implement
standard work

• Root cause analysis

• Try out or simulate new
process

• Measure future state

• Prioritize solutions

• Train participants

• Establish current state

• Calculate actual
benefits

• Future state design

• Day 4 summary

• Day 1 summary

• Day 2 summary

• Tweak design as
needed
• Day 3 summary

• Set objective(s) for Day
5

• Document current state
– process map or value
stream map, identify
waste (opportunities),
data collection, etc.

• Analyze current state

• Set objective(s) for Day
2

• Brainstorm ideas

• Set objective(s) for Day
3

• Set objective(s) for Day
4

© Operational Excellence Consulting. All rights reserved.

* Adjust duration as required
45
Day 1 –
Orientation

© Operational Excellence Consulting. All rights reserved.
Orientation
• Welcome and introduce the Kaizen team
• Set expectations – what is the objective?
• Provide focused training, e.g. Kaizen overview,
VSM
 Limit to half a day maximum

• Identify the Customer – internal/external
• Define the Kaizen charter
© Operational Excellence Consulting. All rights reserved.

49
Safety & Integrity
• All event activities must be performed with your
safety and the public safety in mind
• Take the opportunity to correct hazards, even if
not directly tied to the event
• Process changes must not lower the quality of
products/services
• Consider ergonomics and focus on reducing
waste when redesigning a job/process
© Operational Excellence Consulting. All rights reserved.

51
Team Orientation
• Team member package

• Review the process

 Agenda

• Clear, simple priorities

 Background data

• Goals and work
requirements, hours, start
time, daily meetings

 Objectives
 Rules and safety
procedures

• Deadlines, milestones

 Kaizen Charter
 Policies & Procedures

• Avoiding conflicts
• Roles for management

© Operational Excellence Consulting. All rights reserved.

53
Day 2 –
Understand
current situation

© Operational Excellence Consulting. All rights reserved.
Understand Current Situation
• Crucial first step in process improvement

• Deep understanding of the existing processes
and dependencies
• Identify all the activities currently involved in
developing a new product
• Observe the process first hand
• Flowchart the process or define the value
stream
© Operational Excellence Consulting. All rights reserved.

57
Flowchart
• A flow chart is a graphical
or symbolic representation
of a process.
• Each step in the process is
represented by a different
symbol and contains a
short description of the
process step.
• The flow chart symbols are
linked together with arrows
showing the process flow
direction.
© Operational Excellence Consulting. All rights reserved.

59
Identify VA, NVA-R, and NVA
Activity
Yes

Adds Value
to Customer?

Necessary
to Produce
Output?

No

No
Yes

Yes

Contributes
to Business
Effectiveness?

No
VA

Customer
Value Added
Agree Specifications
Manufacturing

NVA-R

Sustaining
Payroll
Testing
Development Activity
Back-up Database
Changeovers
Audits
Regulatory
© Operational Excellence Consulting. All rights reserved.

NVA

Non-Value
Added
Review & Approval
Scrap
Rework
Filing
Copying
Reconciliation
61
Identify Root Causes
• Cause and Effect Diagrams

• Why-why Analysis
Causes

Materials
(or Information)

Manpower

Effect

Machines
(or Equipment)

Output

Environment

Methods

Measurement

© Operational Excellence Consulting. All rights reserved.

63
Kaizen Event Process
1. Orientation

5. Report &
Celebrate

4. Make the
Improvements

2. Understand
Current Situation

3. Develop
Future State
Design

© Operational Excellence Consulting. All rights reserved.

65
Develop the Future State

© Operational Excellence Consulting. All rights reserved.

67
Day 4 –
Make the
improvements

© Operational Excellence Consulting. All rights reserved.
Implement the New Process
• Plan
 What specific changes need to occur
 In what sequence
 Resources needed – get commitment
 Impact on existing activities and functions

 Responsibilities

• Communicate
 Who, what, when

• Implement
 Execute the plan

• Modify (as needed)
© Operational Excellence Consulting. All rights reserved.

71
Develop Implementation Plan
• Will new skill sets be
required, and how to
achieve them?
• Is the current organization
structure sufficient?
• Are there cultural issues?
• Is there potential for “push
back”?
• Any implications for
suppliers?

• Implications for customers?
• Implications for team
members?
• Do current technologies
support the new process?
Are they available and cost
justifiable?
• Technology is an enabler,
not a solution.

• Does the reward system
support the new process?

© Operational Excellence Consulting. All rights reserved.

73
Standardize the Work
Control Points for Stability
Materials &
Information

Machines
(equipment)

Methods

People

Measurements

Feed in materials
& information

Ship to customers

Sloppy work = defective,
off-standard products

Standard
© Operational Excellence Consulting. All rights reserved.

75
Mistake-proof the Process
• Mistake proof the
process.
• Take the magic out
and make it into a
repeatable science by
eliminating the ability
to make errors.

Figure out which
method applies,
starting at the top.

Best
 Elimination
 Replacement
 Prevention
 Facilitation
 Detection
 Mitigation

© Operational Excellence Consulting. All rights reserved.

77
Typical Results
• 40 – 60% reduction of lead time

• 10 – 15% productivity improvement
• 10 – 20% reduction in rework
• Improved communication between functions and
departments
• Clearly defined customer needs throughout the
value stream

• Improved customer satisfaction

© Operational Excellence Consulting. All rights reserved.

79
Day 5 –
Report &
celebrate

© Operational Excellence Consulting. All rights reserved.
The Final Presentation
• Allow teams to document and publicize
accomplishments
• All team members should participate
• Allow time during event to prepare (2-3 hours)

• Invite sponsors
• Invite employees from target areas as well
adjacent areas

• Invite audience to stay for celebration

© Operational Excellence Consulting. All rights reserved.

83
Celebration Guidelines
• Involve senior leaders in celebration

• Involve and recognize contributions of area
employees not actually on the team
• Recognize contribution of support functions

• Involve team in celebration/recognition specifics
• Recognition should be focused squarely on
results achieved, not simply on having
participated in an event

© Operational Excellence Consulting. All rights reserved.

85
Kaizen Event Post-Work
• Follow up with Event Sponsor/Champion and
Event Leaders:
 Ensure implementation plan is being met
 Ensure action plan is being executed

 Ensure the team is touching base on progress

• Teams should track progress against
performance goals
 Can be integrated into daily management activities
 Meet monthly to assure changes are adhered to
© Operational Excellence Consulting. All rights reserved.

87
Kaizen Event Post-Work
• Publish follow-up communication
 Publish and circulate successes using Lean Team
Room/Intranet
 Send summary and thank-you package to all external
participants
 Give recognition to participants via the Lean
Newsletter to:
 Broadcast

results and generate excitement

 Communicate
 Describe

lessons learned

best practices for deployment elsewhere

© Operational Excellence Consulting. All rights reserved.

89
END OF GUIDEBOOK
For more information about our
services, please visit

www.oeconsulting.co
m.sg

© Operational Excellence Consulting. All rights reserved.
A
Kaizen Event
Templates
© Operational Excellence Consulting. All rights reserved.
Kaizen Summary
Project type: ________________ Area: _________________Team Leader: ______________
Before/current state

After/future state

Reasons project chosen:

Results:

Tools used on project:

Next steps:

© Operational Excellence Consulting. All rights reserved.

95
Kaizen Status Update
Kaizen Implemented

Expected Results

© Operational Excellence Consulting. All rights reserved.

Actual Results

97
Enter Kaizen title:
Agenda

© Operational Excellence Consulting. All rights reserved.

99
Enter Kaizen title:
Metrics & Data Collection Plan
What is to be
measured

Who is responsible
for gathering of
data, and who is to
receive data

When

Where

© Operational Excellence Consulting. All rights reserved.

How

101
Enter Kaizen title:
Layout:
• Before

• After

© Operational Excellence Consulting. All rights reserved.

103
Enter Kaizen title:
Mistake proofing improvements
• Problem

• Solution

© Operational Excellence Consulting. All rights reserved.

105
Enter Kaizen title:
Lessons learned
• Lesson one

• Lesson two
• Lesson three

© Operational Excellence Consulting. All rights reserved.

107

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Kaizen Event Guide

  • 1. Guide for Planning & Conducting a Kaizen Event © Operational Excellence Consulting. All rights reserved.
  • 2. Contents • Introduction • Phase 1: Pre-event Preparation • Phase 2: The Kaizen Event • Phase 3: Post-event Follow Up © Operational Excellence Consulting. All rights reserved. 3
  • 3. What is Kaizen? • The Japanese word “Kaizen” (改 善) means change (KAI) to become good (ZEN). Kai Zen 改 善 Change Good © Operational Excellence Consulting. All rights reserved. 5
  • 4. 10 Rules of Kaizen 1 1. Discard conventional rigid thinking about production. 2. Think of how to do it, not why it cannot be done. 3. Do not make excuses. Start by questioning current practices. 4. Do not seek perfection. Do it right away if for only 50% of target. 5. Correct mistakes at once. © Operational Excellence Consulting. All rights reserved. 7
  • 5. What is the Purpose of Kaizen? • Kaizen activities focus on each process in order to add value and eliminate waste © Operational Excellence Consulting. All rights reserved. 9
  • 6. Types of Waste Intellect Not using employees full intellectual contribution Over-processing Adding excess value when the customer does not require it Over-production Producing more than what the customer needs Waiting Employees waiting for another process or information Motion Extra physical/mental motion that doesn‟t add value Waste Defects Reprocessing, or correcting work Inventory Building and storing extra services/products the customer has not ordered Transportation Moving from one place to another © Operational Excellence Consulting. All rights reserved. 11
  • 7. Benefits of Kaizen & Kaizen Events • Empowers employees, enriches the work experience and brings out the best in every person • Promotes personal growth of employees and the company • Improves quality, safety, cost structures, delivery, environments, throughput and customer service/satisfaction • Provides guidance from employees, and serves as a barometer for leadership © Operational Excellence Consulting. All rights reserved. 13
  • 8. Select an Area • Choose an area that will have an impact but not pose too many difficult problems in the beginning • Each event will teach you things that will make the next event smoother and easier to run • As people gain experience in running events, it will become possible to tackle more complicated problems • Develop a selection criteria to select the best event to start first © Operational Excellence Consulting. All rights reserved. 15
  • 9. Select a Problem for Improvement • What to avoid with initial projects  Out of control processes  Unreliable equipment  Incapable equipment  Interdependent processes  Improvement is not seen as necessary  A process that may soon be obsolete © Operational Excellence Consulting. All rights reserved. 17
  • 10. Setting Goals • Set a limited number of improvement goals to be achieved during the event • Prioritize multiple objectives • Use S.M.A.R.T. criteria for goal setting:  S=Specific; M=Measurable; A=Achievable; R=Realistic; T=Timely • Goals should be challenging – requiring real creativity • Team should be involved in setting improvement targets • Objectives may not be completely met © Operational Excellence Consulting. All rights reserved. 19
  • 11. Team Leader Role • Pre-Kaizen  Review all pre-event information  Tour target area • During Kaizen  Review progress against objectives daily  Check status of team member activity. Update to-do list.  Keep everyone involved in specific improvement activities © Operational Excellence Consulting. All rights reserved. 21
  • 12. Select the Team Members • 4 to 10 people • From across all levels and functions impacted by the project • Include experts – if they have open minds • Include people with prior Kaizen experience • Include outsiders from unrelated functions to obtain different points of view • Provide focused training to the team before the event © Operational Excellence Consulting. All rights reserved. 23
  • 13. Facilities and Logistics • Work Areas  Notify people of upcoming Kaizen and purpose  Floor/equipment layout – obtain/create a schematic • Training / Meeting Rooms  Reserve room  Flipcharts, overhead projector, Post-it® notes, etc. • Food and Refreshments • Location for Celebration © Operational Excellence Consulting. All rights reserved. 25
  • 14. Collecting Information  Pre-Event baseline data:  Lead Time, Touch Time, Cycle Time, Percentages, etc.  Number of people in the process  Product/Service Demand by Type, by Shift; Customer Demand (Takt Time)  Quality Defects, Rework Loops, Inspection Points  Cycle time by Product/Service  Space Requirements, Distances Traveled; Before Pictures  Safety Issues; Future Plans; Past Failures at a Similar Effort © Operational Excellence Consulting. All rights reserved. 27
  • 15. Conference Room or Gemba? • Important to “go to the gemba”  “Gemba”: where the process actually occurs • Kaizen can happen right on the factory floor or information can be gathered at the process • Conference room can be used for analysis and discussion • Don‟t be afraid of going back to the gemba to challenge and test ideas © Operational Excellence Consulting. All rights reserved. 29
  • 16. Pre-Event Communications • Communication from Leadership should:  Explain to employees what a Kaizen Event is and why it is needed  Explain how it supports Lean initiatives  Focus on long-term improvement rather than shortterm disruption  Discuss safety and ergonomic concerns  Set expectations for step change, not insignificant incremental improvement When people are familiar with the Event prior to its occurrence, they will be more receptive and productive during the Event © Operational Excellence Consulting. All rights reserved. 31
  • 17. Tips for Success (cont’d) • Guide but don‟t steer – allow divergent points of view • Do not under plan • Be sure you are clear on the expectations from the Event • Be sure each team member understands expectations from the Event • Understand the roles of team members, SMEs, Executive Sponsor, and yourself © Operational Excellence Consulting. All rights reserved. 33
  • 19. Two Weeks Before Event…  Finalize Team Membership  Should be personally invited by the Executive Sponsor/Team Leader  Define Event Schedule  What training modules should be used?  Develop Event agenda  Determine time and place for mid-week reports and final Report Out  Develop Team Charter  Get buy-in from Executive Sponsor  Approval from PMO (to prevent duplication/coordinate lessons learned)  Publish Charter & Agenda to all Event Team Members and PMO  Send out „Invitation to Event‟ email to each member and Sponsor  Reserve a room for the week and Final Report Out  Reserve overhead projector  Make food arrangements – Lunch and coffee breaks © Operational Excellence Consulting. All rights reserved. 37
  • 20. One Day Before Event…  Verify the room is setup properly for your Event… U-shaped works nicely  Verify meals and snacks are confirmed  Verify all supplies and equipment  Coordinate with the Executive Sponsor  Coordinate with the Team Leader  Dry Run the Agenda  Rehearse presentation and timing  Prepare notes  Print handouts, make copies  Prepare Attendance Sheet (one for each day)  Prepare Day 1 Agenda on flipchart  Post Good Meeting Practice guidelines on meeting room wall © Operational Excellence Consulting. All rights reserved. 39
  • 21. 3 THE KAIZEN EVENT © Operational Excellence Consulting. All rights reserved.
  • 22. Kaizen Event Process 1. Orientation 5. Report & Celebrate 4. Make the Improvements 2. Understand Current Situation 3. Develop Future State Design © Operational Excellence Consulting. All rights reserved. 43
  • 23. Kaizen Event Agenda* Day 1 – Orientation Morning • Welcome & Introductions • Set expectations • Provide focused training • Identify the Customer Day 2 – Understand current situation Day 3 – Develop future state design • Analyze current state • Future state design • Brainstorm ideas • Mid-week review • Root cause analysis • Prioritize solutions • Implement improvements Day 4 – Make the improvements • Implement improvements • Finalize future state • Try out or simulate new process • Complete training on standard work • Final presentation • Train participants • Future state design • Tweak design as needed • Define Kaizen Charter Lunch Afternoon Day 5 – Report & celebrate • Lunch & celebration • Implement improvements • Create and implement standard work • Root cause analysis • Try out or simulate new process • Measure future state • Prioritize solutions • Train participants • Establish current state • Calculate actual benefits • Future state design • Day 4 summary • Day 1 summary • Day 2 summary • Tweak design as needed • Day 3 summary • Set objective(s) for Day 5 • Document current state – process map or value stream map, identify waste (opportunities), data collection, etc. • Analyze current state • Set objective(s) for Day 2 • Brainstorm ideas • Set objective(s) for Day 3 • Set objective(s) for Day 4 © Operational Excellence Consulting. All rights reserved. * Adjust duration as required 45
  • 24. Day 1 – Orientation © Operational Excellence Consulting. All rights reserved.
  • 25. Orientation • Welcome and introduce the Kaizen team • Set expectations – what is the objective? • Provide focused training, e.g. Kaizen overview, VSM  Limit to half a day maximum • Identify the Customer – internal/external • Define the Kaizen charter © Operational Excellence Consulting. All rights reserved. 49
  • 26. Safety & Integrity • All event activities must be performed with your safety and the public safety in mind • Take the opportunity to correct hazards, even if not directly tied to the event • Process changes must not lower the quality of products/services • Consider ergonomics and focus on reducing waste when redesigning a job/process © Operational Excellence Consulting. All rights reserved. 51
  • 27. Team Orientation • Team member package • Review the process  Agenda • Clear, simple priorities  Background data • Goals and work requirements, hours, start time, daily meetings  Objectives  Rules and safety procedures • Deadlines, milestones  Kaizen Charter  Policies & Procedures • Avoiding conflicts • Roles for management © Operational Excellence Consulting. All rights reserved. 53
  • 28. Day 2 – Understand current situation © Operational Excellence Consulting. All rights reserved.
  • 29. Understand Current Situation • Crucial first step in process improvement • Deep understanding of the existing processes and dependencies • Identify all the activities currently involved in developing a new product • Observe the process first hand • Flowchart the process or define the value stream © Operational Excellence Consulting. All rights reserved. 57
  • 30. Flowchart • A flow chart is a graphical or symbolic representation of a process. • Each step in the process is represented by a different symbol and contains a short description of the process step. • The flow chart symbols are linked together with arrows showing the process flow direction. © Operational Excellence Consulting. All rights reserved. 59
  • 31. Identify VA, NVA-R, and NVA Activity Yes Adds Value to Customer? Necessary to Produce Output? No No Yes Yes Contributes to Business Effectiveness? No VA Customer Value Added Agree Specifications Manufacturing NVA-R Sustaining Payroll Testing Development Activity Back-up Database Changeovers Audits Regulatory © Operational Excellence Consulting. All rights reserved. NVA Non-Value Added Review & Approval Scrap Rework Filing Copying Reconciliation 61
  • 32. Identify Root Causes • Cause and Effect Diagrams • Why-why Analysis Causes Materials (or Information) Manpower Effect Machines (or Equipment) Output Environment Methods Measurement © Operational Excellence Consulting. All rights reserved. 63
  • 33. Kaizen Event Process 1. Orientation 5. Report & Celebrate 4. Make the Improvements 2. Understand Current Situation 3. Develop Future State Design © Operational Excellence Consulting. All rights reserved. 65
  • 34. Develop the Future State © Operational Excellence Consulting. All rights reserved. 67
  • 35. Day 4 – Make the improvements © Operational Excellence Consulting. All rights reserved.
  • 36. Implement the New Process • Plan  What specific changes need to occur  In what sequence  Resources needed – get commitment  Impact on existing activities and functions  Responsibilities • Communicate  Who, what, when • Implement  Execute the plan • Modify (as needed) © Operational Excellence Consulting. All rights reserved. 71
  • 37. Develop Implementation Plan • Will new skill sets be required, and how to achieve them? • Is the current organization structure sufficient? • Are there cultural issues? • Is there potential for “push back”? • Any implications for suppliers? • Implications for customers? • Implications for team members? • Do current technologies support the new process? Are they available and cost justifiable? • Technology is an enabler, not a solution. • Does the reward system support the new process? © Operational Excellence Consulting. All rights reserved. 73
  • 38. Standardize the Work Control Points for Stability Materials & Information Machines (equipment) Methods People Measurements Feed in materials & information Ship to customers Sloppy work = defective, off-standard products Standard © Operational Excellence Consulting. All rights reserved. 75
  • 39. Mistake-proof the Process • Mistake proof the process. • Take the magic out and make it into a repeatable science by eliminating the ability to make errors. Figure out which method applies, starting at the top. Best  Elimination  Replacement  Prevention  Facilitation  Detection  Mitigation © Operational Excellence Consulting. All rights reserved. 77
  • 40. Typical Results • 40 – 60% reduction of lead time • 10 – 15% productivity improvement • 10 – 20% reduction in rework • Improved communication between functions and departments • Clearly defined customer needs throughout the value stream • Improved customer satisfaction © Operational Excellence Consulting. All rights reserved. 79
  • 41. Day 5 – Report & celebrate © Operational Excellence Consulting. All rights reserved.
  • 42. The Final Presentation • Allow teams to document and publicize accomplishments • All team members should participate • Allow time during event to prepare (2-3 hours) • Invite sponsors • Invite employees from target areas as well adjacent areas • Invite audience to stay for celebration © Operational Excellence Consulting. All rights reserved. 83
  • 43. Celebration Guidelines • Involve senior leaders in celebration • Involve and recognize contributions of area employees not actually on the team • Recognize contribution of support functions • Involve team in celebration/recognition specifics • Recognition should be focused squarely on results achieved, not simply on having participated in an event © Operational Excellence Consulting. All rights reserved. 85
  • 44. Kaizen Event Post-Work • Follow up with Event Sponsor/Champion and Event Leaders:  Ensure implementation plan is being met  Ensure action plan is being executed  Ensure the team is touching base on progress • Teams should track progress against performance goals  Can be integrated into daily management activities  Meet monthly to assure changes are adhered to © Operational Excellence Consulting. All rights reserved. 87
  • 45. Kaizen Event Post-Work • Publish follow-up communication  Publish and circulate successes using Lean Team Room/Intranet  Send summary and thank-you package to all external participants  Give recognition to participants via the Lean Newsletter to:  Broadcast results and generate excitement  Communicate  Describe lessons learned best practices for deployment elsewhere © Operational Excellence Consulting. All rights reserved. 89
  • 46. END OF GUIDEBOOK For more information about our services, please visit www.oeconsulting.co m.sg © Operational Excellence Consulting. All rights reserved.
  • 47. A Kaizen Event Templates © Operational Excellence Consulting. All rights reserved.
  • 48. Kaizen Summary Project type: ________________ Area: _________________Team Leader: ______________ Before/current state After/future state Reasons project chosen: Results: Tools used on project: Next steps: © Operational Excellence Consulting. All rights reserved. 95
  • 49. Kaizen Status Update Kaizen Implemented Expected Results © Operational Excellence Consulting. All rights reserved. Actual Results 97
  • 50. Enter Kaizen title: Agenda © Operational Excellence Consulting. All rights reserved. 99
  • 51. Enter Kaizen title: Metrics & Data Collection Plan What is to be measured Who is responsible for gathering of data, and who is to receive data When Where © Operational Excellence Consulting. All rights reserved. How 101
  • 52. Enter Kaizen title: Layout: • Before • After © Operational Excellence Consulting. All rights reserved. 103
  • 53. Enter Kaizen title: Mistake proofing improvements • Problem • Solution © Operational Excellence Consulting. All rights reserved. 105
  • 54. Enter Kaizen title: Lessons learned • Lesson one • Lesson two • Lesson three © Operational Excellence Consulting. All rights reserved. 107