Kaizen

© Operational Excellence Consulting. All rights reserved.
Kaizen

© Operational Excellence Consulting. All rights reserved. 4
1 Introduction to Kaizen
2 Kaizen and Waste
3 Key Concepts of Kaizen
4 Kaizen Management
5 Kaizen Practices
6 Kaizen Implementation
7 Kaizen Story
8 Developing “Kaizen Eyes”
9 Role of Management
10 Critical Success Factors
Outline
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What is Kaizen?
 Kaizen means improvement. Improvements without
spending much money, involving everyone from
managers to employees, and using much common
sense.
 The aspect of Kaizen is that it is on-going and never-
ending improvement process

Kaizen versus Problem Solving
 Problem solving
• Centers on the fundamental notion of “gap” or “deviation” from
standard (e.g. cost, quality, delivery)
 Kaizen
• Focuses on achieving a new standard or level of performance
Standard – what should
be happening
Current situation – what
is actually happening
Gap = Problem

Kaizen is a Continuous Process
Standardize
Standardize
Standardize
Kaizen
Kaizen
Kaizen
P
DC
A
Kaizen (改善) =
Continuous Improvement
PlanPlan
DoDoCheckCheck
ActAct

Kaizen Philosophy
Implement good housekeeping and workplace organization.
Identify and eliminate all activities that are waste.
Implement standardization.
Current
State
Future
State
Solve
Problems
Expose
Problems “True North”
Value Added Time = Lead Time
Full of Waste,
Variation, and
Constraints

1. Good Housekeeping (5S)
 Housekeeping (5S) is an indispensable ingredient of
good management
 Through good housekeeping, employees acquire and
practice self-discipline
 Employees without self-disciplines make it difficult to
provide products or services of good quality to the
customer

Examples of Waste Elimination Practices
1. Eliminating reports that nobody reads
2. Locating the utility room (e.g. photo-copiers, fax
machines, etc.) in a central area to reduce
unnecessary walking
3. Arranging workstations in sequential order in which
work is being done
4. Providing proper storage areas and labeling for
materials and supplies (e.g. stationery) for ease of
searching
5. Organizing individual workstations to minimize
unnecessary motion, e.g. bending, reaching

Benefits of Kaizen
 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

“Waste is anything other
than the minimum
amount of equipment,
materials, parts, space,
and worker’s time which
are absolutely essential to
add value to the product.”
Shoichiro Toyoda
President, Toyota
Definition of Waste

Value-Added Activities
 Transforms or shapes material or information
 Customer wants it
 Done right the first time
Non-Value Add: Incidental Waste
 No value created but required by current thinking
 No value created but required by process limitations
 No value created but required by current technology
 No value created but required by government/business regulations
Non-Value Add: Pure Waste
 Consume resources but creates no value for the customer
 Could be stopped and it would be invisible to the customer
Value Defined

“The most
dangerous kind of
waste is the waste
we don't
recognize.”
Shigeo ShingoThis document is a partial preview. Full document download can be found on Flevy:

© Operational Excellence Consulting. All rights reserved. 37© Operational Excellence Consulting. All rights reserved. 37
Eight Types of Waste
Over-production
Producing more than what
the customer needs
Inventory
Building and storing extra
products the customer has
not ordered
Transportation
Moving product from
one place to another
Defects
Reprocessing, or
correcting work
Over-processing
Adding excess value
when the customer
does not require it
Motion
Extra physical/mental
motion that doesn’t add
value
Intellect
Not using employees full
intellectual contribution
Waiting
Employees waiting for
another process or a
machine/tool
WasteWaste

Key Concepts of Kaizen
3

Kaizen & Management
Maintenance
 Follow current
Standard Operating
Procedures (SOP)
 SDCA
Improvement
 Upgrade existing
Standard Operating
Procedures (SOP)
 PDCA

“Where there is no
standard, there can be
no improvement. For
these reasons,
standards are the basis
for both maintenance
and improvement.”
Masaaki ImaiThis document is a partial preview. Full document download can be found on Flevy:

Following the PDCA / SDCA Cycles
 ACT refers to performing and standardizing prevent
recurrence of the original problem or to set goals for the
new improvement
 The PDCA cycle revolves continuously
 Management must initiate PDCA by establishing
continuously challenging goals
 Before working on PDCA, any current process must be
stabilizedThis document is a partial preview. Full document download can be found on Flevy:

SDCA / PDCA Cycle
Kaizen
Maintenance
SS
DDCC
AA
PP
DDCC
AA
Kaizen
Maintenance
SS
DDCC
AA
PP
DDCC
AA

The Next Process Is The Customer
 The next process should always be regarded as the
customer
 Refers to two types of customers: internal and external
 When everyone in the organization practices this the
external customer will receive a high quality product or
service as a result

Speak with Data
 Kaizen is a problem solving process
 The problem must be understood and recognized
 Solving a problem without data is not a very scientific or
objective approach
 Collecting, verifying and analyzing data for improvement
is vital

Cross-functional Management
Kaizen
Management
Maintenance
Management
Kaizen Maintenance
Quality
Cost
Delivery
Cross-functional
management
Line organization
Policy
deployment
Routine (daily)
management
Small-group activities
Individual suggestions
Source: Kaizen by Masaaki Imai

©OperationalExcellenceConsulting.Allrightsreserved.64
TPM
TotalProductiveMaintenance(TPM)isaseriesof
methodstokeepequipmentrunning
ThegoalsofTPMinclude:
•Zerodowntime
•Zerodefects
•Zeroaccidents
TPM in the OfficeTPM in the Office
Safety, Health & EnvironmentSafety, Health & Environment
Autonomous MaintenanceAutonomous Maintenance
Planned MaintenancePlanned Maintenance
Focused ImprovementFocused Improvement
Early Equipment
Management
Early Equipment
Management
Quality MaintenanceQuality Maintenance
Education & TrainingEducation & Training
5S&VisualManagement5S&VisualManagement
TPMGoals:
ZeroDefects,ZeroBreakdowns,
ZeroAccidents

Kaizen Practices
5

Kaizen – The Practice
Management-
Oriented Kaizen
Group-Oriented
Kaizen
Individual-
Oriented Kaizen
Booster Improvement in
managerial
performance
Morale improvement
Participation
Learning experience
Morale improvement
Kaizen awareness
Self-development
Direction Gradual & visible
improvement
Marked upgrading of
current status
Gradual & visible
improvement
Gradual & visible
improvement

Go to “Gemba”, observe, recognize Waste
and take steps to eliminate it
 “Gemba” means the place where the real actions take
place
 It usually refers to place where employees have direct
contact with customers
 “Gemba” is where the value-adding activities to satisfy
the customer are taken place
 One place that is not “Gemba” is a manager’s deskThis document is a partial preview. Full document download can be found on Flevy:

Group / Individual Kaizen Process
1. Employee identifies a problem, waste/loss, or an opportunity
for improvement and writes it down
2. Employee develops an improvement idea and discusses it with
his or her supervisor
3. Supervisor reviews the idea within 24 hours and encourages
immediate action
4. Employee implements the idea. If a larger improvement idea is
approved, the employee should take leadership to implement
the idea.
5. Idea is written up on a simple form in less than three minutes
6. Supervisor posts the form to share with and stimulate others
and recognizes the accomplishment

Adopting The Necessary Attitude
 Adopt an attitude that supports changing the way things
have always been done
 It is very important that you understand that one purpose
of discovering waste is to take the frustration out of your
work
 Adopt the 10 principles for improvement or “kaizen
rules” (see the next 10 slides)

Do not make excuses
– Start by questioning
current practices.
3
Source: Masaaki Imai

Do not spend money
for continuous
improvement.
6

Seek the wisdom of 10
people rather than the
knowledge of one.
9

Kaizen Circle
Activity (KCA)

Kaizen Circle Roles & Responsibilities
Role Responsibilities
Circle Member
Attends meetings. Contribute ideas. Choose and analyze problem.
Recommend and implement solutions. Make presentations.
Facilitator
Attend training. Guide team members through problem-solving
process. Attend circle meetings. Complete and submit KCA meeting
records.
Advisor
Attend training. Provide technical and administrative advice as
required. Attend circle meetings. Help coordinate presentations to
management.
Circle Trainer
Develop and conduct training. Attend circle meetings if requested.
Provide problem-solving training if requested. Collect meeting
records and report to management.
Manager
Encourage circle formation and involvement. Periodically check circle
progress and offers suggestions. Approve recommendations. Attend
presentations.

Kaizen Circle Activity Promotion
 At Toyota, KCA is promoted through:
1. Report boards in production areas and other high-traffic
locations such as team member entrances
2. Plant-wide circle competitions and awards in categories such as
productivity, safety, quality costs, and environment
3. Interplant circle competitions
 Interplant circle competitions held at the company’s head
office and judged by senior management are highly
motivating, particularly for young workers

Practical Kaizen
Training

Practical Kaizen Training (PKT)
 At Toyota, a desired output for each PKT is:
• A confirmed standard work charts for the new process
• Physical changes
• Shared understanding across shifts of the new process

Kaizen Event

Kaizen Event – How is it done?
 Pre-event preparation
 Kaizen event
 Event follow-up

Exercise: Kaizen Events
Instructions:
1. In your respective groups, identify a Kaizen event (e.g. 5S, waste
elimination, standardization, etc.) that would benefit your
team/function/company.
2. What are the reason(s) for selecting the Kaizen event?
3. Briefly discuss how the identified Kaizen event can be implemented.
Where should the event be held? What preparations are needed?
Who needs to be involved?
10 mins

Kaizen Example – Office Stationery
All stationery items are clearly visible and easy to retrieve. On the left, there are
forms for re-ordering supplies. On the right is a map of the items and their locations,
forms for comments/suggestions, and contact information.

Kaizen Summary Sheet – Example 1
Before After
Reasons project chosen:
• Difficult to move around a cluttered
office
• Difficult to find information and
supplies
Tools used on project:
• Cleaning equipment and tools
• 5S principles
Results:
• Unwanted materials were discarded
• Less waste – e.g. transportation,
motion, waiting, etc.
• Improved staff morale
Next steps:
• Conduct monthly 5S audits
• 5S for other common areas
Project type: 5S Area: Sales & Marketing Office Team Leader: John Smith

Kaizen Story (a.k.a. QC Story)
 The kaizen story is a
standardized format to record
kaizen activities conducted by
small groups (e.g. quality
circles, kaizen circles)
 The kaizen story follows the
Plan-Do-Check-Act (PDCA)
cycle
 PDCA provides a framework
for a team to carry out
improvement
PlanPlan
DoDoCheckCheck
ActAct

There Are Eight Standardized Steps in the
Kaizen Story
Select the ThemeSelect the Theme
Plan the SchedulePlan the Schedule
Grasp the Present SituationGrasp the Present Situation
Establish the TargetEstablish the Target
Analyze the Cause & Identify Corrective ActionAnalyze the Cause & Identify Corrective Action
Implement Corrective ActionImplement Corrective Action
Evaluate the ResultEvaluate the Result
Standardize & Follow-upStandardize & Follow-up
PLAN
ACT
CHECK
DO
1
2
3
4
5
6
7
8

Step 3: Grasp the Present Situation
 Map out the process and identify areas of opportunity
 State the improvement opportunity
 Define scope of the project
 Define success measures (what is success?)
 Decide what data to collect and how to collect it
 Use appropriate tools for data collection and analysis
(e.g. check sheet, Pareto chart, fishbone diagram)
 Compare actual versus desired performance

Step 5: Analyze the Cause & Determine
Corrective Action
 Brainstorm possible causes of the problem or current
performance
 Identify root cause(s). Use:
• Cause-and-effect diagram
• 5 Whys analysis
 Measure and verify root cause(s)
 Propose solutions using 5W1H

Step 7: Evaluate the Result
 Use measurements to identify the real improvements
 Compare Pareto charts of “before” and “after”
improvement
 Are results as expected? If not, re-loop back to earlier
stages for further improvement
 Measure related processes to ensure they are not
adversely affected

Exercise: Problem Solving
Instructions:
1. In your respective groups, brainstorm a few problems that
you have observed or encountered in your work area or
function.
2. Identify one problem which would eliminate/reduce
frustrations within your work team or function if it is solved.
3. What is the impact if the problem is not solved?
4. What would be the tangible and intangible benefits if the
problem is solved?
10 mins

“As much as 95% of
quality related
problems in the
factory can be solved
with seven
fundamental
quantitative tools.”
Kaoru Ishikawa

1. Stratification
 Purpose
• To separate different data sources
• To collect data separately for different sources (e.g. by shift, by
machine, by location, etc.)
 Involves the use of other basic tools:
• Check sheets
• Scatter diagrams, etc.

3a. Control Chart
 Purpose
• To identify dynamic or special causes of variation in a repeating
process
 When to use
• To determine if a process is in a state of statistical control
• To differentiate between special and common causes of variation
• To detect statistical trends in measurements
• When regular measurements of a process can be made

Examples: Run Chart
Run Chart of CONC, COC & Total COQ

Examples: Pareto Chart

HIGH
SCRAP OF
BARCODE
LABELS
MAN MACHINE
MATERIAL METHOD
Handling
Wrinkled
Torn
Improper
training
Machine
Breakdown
Ineffective
adhesive
Illegible
Smear
Printwheel Dirty
Worn Ribbon
Design of label
Damage
Poor printing
Improper storage
Wrong orientation
Process changes
Improper storage
Size of label
Process changes
Example: Cause and effect diagram used in solving
the problem of “High Scrap of Barcode Labels”

7. Scatter Diagram
 Purpose
• To show the type and degree of any causal relationship
between two factors
 When to use
• To show any correlation between two factors
• When suspected that any one item may be causing another
• When both items can be measured together, in pairs

What is an A3?
 An A3 is a one-page story about the logical thinking
process to “grasp the situation”
 Helps management understand the process used and
establishes vital points
 Four types of A3:
• Problem solving
• Proposal
• Status
• informational
 Based on the PDCA format
Focus of this presentation

Key Points for A3 Storyboarding
 Make your story flow in a logical sequence. Include only
points needed to tell the story.
 Save words – use graphs and visuals to tell your story
when possible
 Make every word count – be specific, avoid specialized
language

Example of A3 Storyboard

What Are “Kaizen Eyes”?
 Kaizen is continual improvement for the better
 “Kaizen Eyes” see opportunities to improve. These eyes
are a skill that can be developed through technique and
practice.
 The following slides are ways (techniques) to be
practiced. They will help to widen the ability to recognize
opportunity that may not be in full view.

Ways to Develop “Kaizen Eyes” 3
21. Visit other places
22. Take pictures
23. Draw the value stream map
24. Ask yourself what normal should look like
25. Measure Takt (rhythm of the process)
26. Audit standard work
27. Design a simulation
28. Do logic puzzles
29. Ask "why not?" questions
30. Take specific training

Role of Management
9

Kotter’s Change Management Model
Need for
Change
Change
Behavior
Change
Direction
Change
Sustainability
1. Establish a
Sense of
Urgency
2. Form a
Powerful
Guiding
Coalition
3. Create a
Vision
4.
Communicate
the Vision
5. Empower
Others to Act
on the Vision
6. Plan for and
Create Short
Term Wins
7. Consolidate
Improvements
& Produce
More Change
8.
Institutionalize
New
Approaches
Committed
Leadership

Keys To Success
 Management commitment
 Focus on the goal - eliminate waste to reduce cost
 Aligned focus from the top to the bottom
 Allocate the proper resources
 Gather baseline information and measure results. Go to
the Gemba.
 Get as many people involved as possible

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