KAIZEN

The continuous Improvement process program

What is Kaizen ?
A kanji word - made up of KAI & ZEN. KAI means change and ZEN means for the better.
Thus KAIZEN means Change for the Better and implies Continuous Improvements in all areas & at all levels.

It implies a continuous improvement in all company functions, and at all levels.

What is Kaizen ? Cont

The wider meaning is continuous improvements, done consistently, at every time, every step, every place, leading to self development.
This in turn influences the neighborhood development , not only at the company level, but also the society at all the three levels that one plays such as producer, consumer and a good social being.

Kaizen model
KAI ZEN KAIZEN = = = Change Good (For the better) Continuous Improvement

THE KAIZEN ORGANIZATION

EFFORTS WITHIN CUSTOMER EXPECTATIONS ORGANIZATION CUSTOMER SATISFACTION

Why Kaizen ?
Change is the only permanent solution. Change is required to meet the challenges of changing needs of customers

Person close to the job knows best about

the job Enhances the pride of people (By contributing their share)

Kaizen Flow
Performance Bonus Plan
KAIZEN COMMITTEE

Team members

Plan Do Check Act Cycle

Best Team Award

Kaizen rewards

Kaizen
GRADUAL, CONTINUOUS, NEVERENDING, IMPROVEMENTS WITH LITTLE THINGS DONE BETTER. SETTING AND ACHIEVING EVER HIGHER STANDARDS INVOLVING EVERYONE

Kaizen and Innovation

Kaizen believes on continuous incremental improvements.
Innovation is based on sudden and drastic improvement

How is Kaizen is different from Innovation ?

Effect Long Term and long lasting but undramatic v/s the Short Term Change gradual and constant v/s abrupt and volatile Involvement everybody v/s few champions Req little invst. reqd, but great efforts to maintain it. Efforts of orientation People v/s Technology

How is Kaizen different from Innovation ? Cont

Approach Collective, system-oriented v/s individualistic Feedback limited v/s comprehensive Time frame continuous and incremental v/s intermittent
Science Technology Design Prodn. Mkt.

Innovation

Kaizen

Kaizen System concept

Starting from top management to total employee involvement by supporting and encouraging self-directed KAIZEN teams. The system necessarily starts with faith, conviction, complete commitment, and the impassioned involvement by the top management team in the KAIZEN system. Thereafter it should percolate to middle management, and with successful implementation at both these levels, it should go down to all lower levels.

Kaizen System concept. Cont

Empowering people and giving them protected freedom. Empowerment means effective delegation of authority to the lower level to take decisions in their work area, but keeping the responsibility with the self. This shall create an environment of protected freedom at the work place.

Organizational Structure of KAIZEN

CEO
Advisor KAIZEN COMMITTEE

Facilitators
Team Coordinators

Member

Member

Member

Member

Kaizen or Continuous Process Improvement, implementation

Goal:
To achieve perfection by continuously improving the business & production process. Perfection is an Elusive goal, however one must continuously strive for attaining it.

Aim
To make the process

1.
2.

3.
4. 5.

Efficient Effective Under control Simplify and Adaptable To Achieve this GOAL..

Requirements

View all work as a process.

(whether production or business)

Make all processes

1. Effective
2. Efficient 3. Adaptable

Anticipate the change in customer needs.

Requirements. Cont
Control in process performance

using measurements such as

1. Scrap reduction

2. Cycle time
3. Control charts

Maintaining constructive

dissatisfaction with present levels of performance.

Requirements. Cont
Eliminate waste and rework Find activities that do not add value to

the product or service

Eliminate non conformities at all

phases of every ones work; even if the increment of improvement is very small
Use bench marking to improve

competitive advantage

Requirements. Cont

Innovate to achieve Break through Incorporate the lessons learnt into future activities Use technical tools such as
1. SPC

2. Experimental Design
3. Bench Marking 4. QFD, and so on.

Process

Process refers to business and production activities. It has Input, Process, and Out Put activities.
Process Process

Input Material Money Information Data People Equipment Method Procedures Environment Material

Out Put Information Data Product Service

Process. cont

The process definition should begin with Internal/External Customers. Customer defines the purpose of organisation and every process within it. The process improvements must be defined in terms of
1. Customer satisfaction 2. Quality of products 3. Good service

Process. cont
The process must have value

added activities and repeatability.

It must be a part of process

improvement.

Improvement

1.

The five basic points

Reduce resources More resource Waste Errors Reflects Poor Workmanship. Meet or Exceed Customer Satisfaction Improved Process. Make the process safer More Productive. Make the process more satisfying to the person doing it.

2. 3.

4. 5.

Jurans Trilogy

1.

2.
3.

The process improvement involves three important components. Planning (5stages) Control Improvement

1. Planning Stage
I Marketing External customer Stated Needs Real Transportation Automobile

These Needs must be translated to requirements II Internal customer III Develop product or Service Features. 1) customer needs 2) needs of the organisation 3) compititive 4) optimise the cost of all stake holders

Planning Stage. Cont

These needs are to be analyzed by Multifunctional Team using the tools such as,
1. QFD
2. CE

3. Taguchis Quality Engineering

4. FMEA and so on

Stage IV

Develop the process to produce product and service features. This task is carried by design team, for which the facilities required are
4. Operation 5. Maintenance 6. Process Capability Evaluation

1. Training 2. Control 3. Scaling up (prototype)

Stage V
1. 2. 3. 4. 5.

Operation: Process planning Production facilities Men Material Positrol (positive control) i.e., the important variables are to be kept under control.

2. Control stage

This is being used by operating forces to help the product, process, and service requirements. They also get the feed back. The steps involved are 1. Evaluating actual operating performance 2. Comparing actual performance to goals, and 3. Acting on the difference

Tools used in this stage

SPC Pareto Diagram Flow Charts Cause and Effect Diagram Check Sheets Histogram Control Charts Scatter Diagram Find whether the process is centered or not.

3. Improvement stage

This stage involves developing an effective Infrastructure through Quality Council. The Duties of Quality council are To identify improvement projects and establishing the team Providing the resources to determine the causes Developing solutions Establishing control to hold the gains.

1.
2. 3. 4.

Phases of Kaizen Process

Problem solving method

Phase-VII Continuously improve Phase-I Identify the oppertunities

Phase-VI Pilot or Varify changes

Phase- II Define the Scope

Phase-V Implement changes

Phase-IV Envision the future process

Phase-III Analyse the current process

Phase I
Identify and prioritize opportunities for improvement, through the following two steps Identify the problem Form the TEAM

Identification of Problem
Pareto analysis of Repetitive External Alarm Field failures Complaints Return Other complaints

Pareto analysis of Repetitive External Alarm

Provides Information on 1. Scrap 2. Rework 3. Sorting

Feed back information

Proposals from suggestion schemes Field survey of user needs Data on performance of products v/s competitors Comments of key people (customers, suppliers, critics, journalists) Brain storm with working groups

These feed backs provides opportunities for improvement

Formation of Team
If the team is a natural work group it is complete If the problem is Multifunctional in nature, then it must selected by Quality Council The team leader is the owner of the process Goals and dead lines are determined Work is carried

Phase II
Problem statement must be crystal clear A Well Defined Problem is Half Solved The characters required are 1. Clear description & that must be understood easily 2. What is wrong, when it happens and where it is occurring. ( not why it is wrong and who is responsible)

Phase II. Cont

It should focus on 1. What is known 2. What is un known 3. What needs to be done It should be with the facts & free of judgements Should emphasize on the Impact on customer

Problem statement charter to the team

1. 2. 3.
4. 5.

Charter specifics Authority who authorized the team Objective and Scope specific areas to be improved and the expected outputs Composition who are the team members, process and sub process owners Direction and control guide lines for the operation of the team General methods to be used, resources and specific mile stones.

Phase III
Analyzing the current process Key activities are to determine measurements needed to analyse the process Gather data Define process boundaries Out puts Customer and supplier inputs Process flow Identification of root causes The levels of customer satisfaction

1. 2. 3. 4. 5. 6. 7.

Process flow Diagram

Team must develop a process flow diagram Process flow diagram is an Eye opener Target performance measures are defined NO MEASUREMENT, NO IMPROVEMENT WHAT GETS MEASURED, GETS DONE

New products
Establish performance measures W.R.T customer requirements Determine the data needed to manage the process Establish regular feed back with customers and suppliers Establish measures for Quality/cost and inputs/out puts

Required data
Design information data Process information data Statistical information data Quality information data

Phase IV
Envision the future process Finding the solution using creativity techniques such as Brain storming Check listing Attribute listing Synectic and so on.

1. 2. 3.

4.

Phase V
Implement changes Objectives are to provide 1. Implementation plan 2. Obtaining approval from the quality council 3. Implementing the process

Phase VI
1. 2. 3. 4. 5.

Pilot or verifying the changes. Monitoring Evaluating Finding the effectiveness of the process Reviewing the process Making pilot changes in small scales To monitor measurements must be taken

Phase VII
1. 2. 3. 1. 2. 3.

Continuous improvement Continuously strive to improve Quality Delivery Reduce cost Continuously strive to reduce Complexity Variation Out of control process

Phase VII. cont

Continuously review the progress made by 1. Quality council 2. Work group Establish areas for future improvements and track performance W.R.T. Internal and External customers.

KAIZEN Progress
Initial Period (2 to 3 months): Motivation Phase Gain Familiarity with the system Identify Obvious / trivial Kaizens Obtain Mixed response including enthusiasm, ridicules, cynicism etc Reasons for Some drop in productivity

KAIZEN Progress. Cont.

Medium Term (3 months onward) HRD Phase
Measure Significant improvements. Identify Some mistakes, errors that surfaces. Identify Shortage of Kaizens. Exploring applications elsewhere (at home) Middle management begins to take interest

KAIZEN Progress. Cont

Long Term (8 m to 1-2 yrs and further) Improvement Phase
Kaizens work in groups Complex problems are solved Postulate Need and awareness for training Exhibit High expectancy for rewards Evolving good organizational structure Major savings and increase in productivity And further Institutionalization Phase So that KAIZEN becomes culture

Aligning the continuous improvements by HOSHIN KANRI

HOSHIN=Objectives KANRI=Control or Management To delight the customer through the manufacturing and servicing process by implementing the quality goals of the organization. Implementation of 5s techniques.

Aligning the continuous improvements by HOSHIN KANRI. Cont

Organizational goals which are framed at different levels involving people at all levels are to be used as measurable goals in order to make the employees understand the importance of quality improvement process Performance development by focusing on the efforts in kaizen evaluation and conducting performance appraisal

5S The House Keeping Tool

SEIRI Sorting out SEITON Systematic Arrangement SEISO Spic &Span SEIKETSU Standardising SHITSUKE Self Discipline Sort of unnecessary items in the work-place and discard them Arrange necessary items in good order so that they can be easily picked for use. A place for everything & Everything in its place Clean your work place completely so that there is no dust on floor, machine and equipment. Maintain high standard of housekeeping and work place organisation at all times. Train people to follow good house keeping disciplines autonomously

Why House keeping is Important?

Workplaces become clean and better organised. Results are visible to everyone Insider and outsider. Visible results enhances generation of more and new ideas. People get automatically disciplined. People become proud of clean and organised workplace. Resultant good company Image generates more business. Happier people involvement Greater people involvement.

Why House keeping is Important?

Low employee turnover. Increased number of suggestions. Better use of floor space. Less inventories Better flow of work Low accident rates High yield of materials Stepping stone to TQM, ISO and other QMS

Where can 5S be implemented ?

AT OFFICE Sorting Out: Used./broken pens Useless papers/files Old diaries Broken furniture Systematic arrangement: File cabinets unlabeled Cluttered drawers, shelves, bookcases, tables Records and documents not arranged well File heaps and papers all over AT HOME Sorting Out: Broken toys Old clothes Broken suitcases Old packing cases Systematic arrangement: Cluttered drawers, cupboards, book cases. Kitchen things in disarray Clothes not kept well in almirahs Newspapers left in a heap in store rooms

Where can 5S be implemented ?

AT OFFICE Spic & Span: Dirty furniture Dust and grime in computer, copiers, OHPs etc Littered dirty floor Cobwebs Dirty windows Dust in hidden places and top of shelves Standardizing: Lack of pest control Toilets not disinfected Self Discipline: Continuous Training & education AT HOME Spic & Span: Dirty furniture Unclean floor Dusty windows, bookshelves, walls, cupboards, etc Cobwebs Grime in kitchen, Grime in fans, lamps, other equipments Standardizing: Lack of pest control Toilets not disinfected Self Discipline: Continuous Training & education

The end

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