Kaizen: Continuous Improvement
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The document discusses the concept of Kaizen, which means "change for the better" or "continuous improvement". It describes Kaizen as a way to standardize proactive problem solving using the PDCA (Plan-Do-Check-Act) cycle. The 8 steps of the Kaizen PDCA process are outlined, including clarifying the problem, breaking it down, setting targets, analyzing root causes, developing countermeasures, implementing changes, monitoring results, and standardizing successful processes. Continuous improvement through small, incremental changes is presented as key to adapting to changes and remaining competitive.
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Kaizen: Continuous Improvement
- 6. That’s me
- 7. Not me
- 10. 改 善 KAI - ZEN “Change for the better”
- 11. KAIZEN IS A WAY TO STANDARDIZE PROACTIVE PROBLEM SOLVING
- 13. 70%…of Fortune 1000 companies ten years ago are no longer in business –unable to adapt to change.
- 14. 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
- 15. 現場 GENBA
- 16. >1,000,000…Can you guess the number of ideas Toyota gets ever year from Genba?
- 17. Admissions Admin Activities Others President Manager Directors Others Every Job Title / GradeEvery 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
- 18. KAIZEN IS APPLIED TO ALL SIDES OF THE BUSINESS
- 19. WHAT AREA DO YOU WANT TO DO KAIZEN?
- 20. 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 Step 5. Develop Counter- measures and Process KPI KAIZEN PDCA 8 STEPS
- 21. 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 Plan PLAN, STEP 1: CLARIFY THE PROBLEM
- 22. Ideal Situation Current Situation Gap PLAN, STEP 1: CLARIFY THE PROBLEM
- 23. 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
- 24. “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
- 25. 改善 KAIZEN “CHANGE FOR THE BETTER”
- 26. BEGIN CLAPPING
- 28. NOW STAND
- 30. 8 STEPS Step 2. Break Down 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 Plan Step 1. Clarify the Problem PLAN, STEP 2 : BREAK DOWN THE PROBLEM
- 31. 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
Editor's Notes
- This is a full time job. There is no way around it. Just so you know, my book is not your typically business book. It’s been reviewed as “an Auto bio of a business” because the storytelling exposes lessons of kaizen that can be applied to your business”
- Over barely two decades, Toyota thought, why can’t we apply this to sales?
- Our office was based in Singapore and led kaizen projects throughout the South Pacific in pilot dealerships across 14 Asian countries. Every project lasted on avg 1.5 years. If they worked, we standardized them among the country, then to other countries, spanning a dealer network of several hundred
- Which is where my team came in. As SEO of Toyota Motor Asia Pacific, my role was to manage teams across three levels of organizations: headquarters, the distributor, and the dealership team to facilitate these pilot dealerships. The term we use in Japan is Pika Pika, for shining dealer/best practice. Our success was measured by, does the team continue the project once we are gone?
- Not all dealerships were equal. Depending on the maturity level of your business, kaizen can be used for many things. Toyota dealerships were across the board, some doing very advanced like business model revenue generating kaizen, and some basic, like wait time for entry into the sales floor. In the Philippines, I ran a lost sales reduction and on time delivery project, In Malaysia, we improve the service efficiency ratio and reduction in parts depreciation
- In Malaysia, we improve the service efficiency ratio and reduction in parts depreciation
- And in India, helped improved sales efficiency and closing rates for the first small car for Toyota in India.
- A problem solving concept born out of the manufacturing side of the business and is one of two pillars of the Toyota Way. Not just to reduce waste and cut costs
- Your business can use kaizen as….
- Easy to implement/change and small payoff
- How many times, have you looked at your business and said, “I think…” I’m in the red, should fire someone, etc. Or people in tour company come to you constantly with assumption, invoicing is making mistakes or fulfillment is messing up the product on delievery.
- Save time in solving complicated problems! Minimize Trial & Error!
- The front line staff. Kaizen is a bottom up approach to improving operations. Genba in Japanese refers to the people who deal directly with the customer. The belief is leadership of the company can’t know the best solutions while sitting in the office and that Genba knows because they represent the customer voice.
- Here’s the secret: the whole business Toyota has a means of capturing customers ideas every year. Can you guess how many ideas they get from employees? Over 1,00o,ooo This helps everyone feel like they are a part of something bigger First thing to know is everyone is going to think they are losing their job
- 17
- Kaizen is the one way to consistently look at every aspect of your business and minimize uncertainty empirically every time.
- Easy to implement/change and small payoff
- 20
- 21
- Now how do we know it’s a problem. What is the ideal vs current? This is gap. Raise your hand if what you want to improve can be measured. You have to have a way to measure the process first before you can start to improve.
- 23
- Remember, how we measure success is if people sustaining the projects on their own. How to make them feel a part of the bigger business, the whole. We were a full time time.
- But they stick with it after fighting me for over 18 months of barely getting results. Which is why the ultimate measure of success was can they do Kaizen on their own. And in leadership, we teach people how to fish. We all know changing mindset is hard, but who knew ops could affect culture?
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