Key Success Factors of Kaizen Program in Minebea Electronics SDN BHD

Key Success Factors of Kaizen Program in Minebea Electronics Sdn Bhd Paper Project
CHAPTER 1
INTRODUCTION
1. INTRODUCTION
This chapter consists of six major areas namely (i) background of the study (ii) statement of
research problem (iii) research objective (iv) scope of the study (v) significance of the study and
(vi) organization of the report
1.1. BACKGROUND OF THE STUDY
The facts of more than 2000 Japan’s companies in Malaysia are very reliable and most of
them have been successful in Malaysia market. These companies have conquering most of
Malaysia’s manufacturing industry from the small to the bigger. When Japanese came to
Malaysia after the Second World War, they adopt everything about Japan in Malaysia
include culture, the life-style and the industry.
Today Malaysia industries utilize the maximum effectiveness of the Japan’s adopting. One of
them is their amazing management philosophy that has introduced a new strategy for
competitive success in business or the called “Kaizen” model. Kaizen is a Japanese word,
which means “continuous improvement” (Manos, 2007). In the broader sense, Imai (1986)
defined Kaizen as “the process of continuous improvement in any arena of life, personal,
social, home, or work.” In business, he defined it as “the process of gradual and incremental
improvement in a pursuit of perfection of business activities.” Under this strategy, continuous
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improvement is considered to be everybody’s job in an organization, in that any employee
must do his/her job and improve it (Channon, 2005).
This concept is really important in management; it’s the key to any competitive success
called continuous improvement. According to Oxford English Dictionary improvement is an
instance of improving or being improved; the action of improving or being improved or a
thing that improves something or is better than something else.
In Kaizen the ongoing improvement involving everyone in organization from the CEO
downs, as well as external stakeholder, even the office cleaner. In other words the Kaizen
approach is for small steps for improvement, done by everybody, everyday, without spend
much money. In Kaizen, management very appreciate their worker or employee by take care
of them, give intrinsic or extrinsic, motivate them and finally with create adopting warn
workplace or environment. To Kaizen, employees are investing to achieve the major result of
5’S. The 5’S System is one of several popular and simple-to-follow management tools,
designed to improve workplace efficiency through facility organization. An offshoot of
management methods, developed during the American “Industrial Revolution,” the system is
a descendent of manufacturing philosophies used in Japan’s post-WWII reconstruction. In
both cases, these early forms of the 5’S System were developed to help managers and work
area personnel systematically achieve total organization and standardization in the
workplace.
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1.2. PROBLEM STATEMENT
Malaysia market has the best competitive. The reasons are the companies adopt the best
management from West or East. Whatever from where the management is, the problem is,
how Malaysia-Japan companies manage the Kaizen system into their system. There are more
complex from the original country to accept it because in here, some people are rejecting this
system. The system is created with high full achiever. Thus the criteria can be and have been
establish at every level of management; between top management and division management;
between middle managers and supervisors, and between supervisor and workers.
The question is, either the employee involved with Kaizen management system or not. And if
they don’t, why they- the employees don’t want to involve, and how the management do to
make they accept this Kaizen program? In other way, if they accept Kaizen program, how
they maintain the participation from the employees.
Many empirical studies have been concerned with information exchange in Kaizen strategy
from different perspectives in several places. Most of them are try to find how to change. For
example, one study revealed that Kaizen was able to help various individuals, groups, and
managerial objectives to be implemented simultaneously in organizations (Styhre, 2001).
Evidently, the Kaizen strategy appeared to impress many scholar and experts around the
world. Nevertheless, some studies were critical about the contribution of the model outside
the Japanese culture, while others’ studies focused on the barriers to its effective
implementation strategy.
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1.3. OBJECTIVE
In the finally of this research, the overall result are hoped to assist organizations in
identify the key success factors of Kaizen program in Minebea Sdn Bhd. In summary,
this study intends to answer the following general objective:
o To emanate key success factors if Kaizen program implementation in Minebea
Sdn Bhd.
o To study the barrier of Kaizen program.
o To study the extent of Kaizen implementation in Minebea Sdn Bhd.
This study explains the important of Kaizen program in played to enable the companies
in compete internally. Basically, there are two kinds of companies those that subscribe to
Kaizen and those that do not. While many companies have success with Kaizen, most of
other companies have failed to realize the tremendous competitive opportunity Kaizen
offers. Partly this is because nobody has explained there are the key success factors of
Kaizen program in these companies.
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Table 1.1: Japanese related companies in Malaysia
Source: JETRO (Japan External Trade Organization) Kuala Lumpur from
http://www.jetro.go.jp/malaysia/services/jpncoinmsia/index.html/statistic.pdf
1.4. SCOPE OF PROJECT
In this research the focus only on the Japan company which operation in Malaysia. This
company involved with Kaizen program and adopts it fully. It also includes the research
based on the acceptation of company’s employee.
The scope of this study is the Malaysia-Japan company in Malaysia namely Minebea
Electronics Motor Sdn. Bhd. This manufacturer was chosen due to their role and
environment measures. Based on table 1.1 the manufacturers of electronic and electrical
product are recently having the high market Japan in Malaysia. The company includes the
employee from multilevel worker and Japan management environment workplace.
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The respondent was someone that familiar with Kaizen system. The selection of respondent
was based on the assumption that they are most qualified person to represent the company.
The method of the gather data are by interview and collecting sample data with questionnaire
to several employees to devised for a survey or statistical study.
1.5. COMPANY BACKGROUND
1.5.1. COMPANY PROFILE
Minebea Motor Manufacturing Corporation was founded by integration of Minebea Co.,
Ltd. and four operations of Motor Company of Panasonic Corporation (formerly named
Matsushita Electric Industrial Co., Ltd.) including fan motors, stepping motors, vibration
motors and DC brush motors in April 2004. (The company name has been changed to
Minebea Motor Manufacturing Corporation from Minebea-Matsushita Motor
Corporation since July 2007.)
This business integration unites the super-precision instrument processing technology,
mass production technology, and cost competitiveness of Minebea with the innovative
product development power of Panasonic Corporation. Minebea-Panasonic; Joint
Corporation is poised to develop and deliver high-value goods through strengthened
capabilities including reduced development time, increased manufacturing capacity, and
improved customer retention activities. These innovations provide the foundation to
support Minebea Motor Manufacturing Corporation's vision to become the global leader
in the integrated motor industry
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1.5.2. CORPORATE PHILOSOPHY
Figure 1.1: Five management strategies
Source: http://www.m-mmotor.com/english/company/policy.html
In Minebea Electronics Motor (M) Sdn Bhd the philosophy is important to make them
move on the track to achieve their goal and needed. There are 3 important that highlight,
are:
 Contribute to society by providing a high level of expertise and innovation in the
manufacture of small motor.
 Realize company growth while preserving harmony with the global environment.
 Create value will meet expectations of our customers, stockholders and employee.
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1.5.3. ORGANIZATION
Minebea Electronics Motor Sdn Bhd has 7 factories in the world which located in China,
Thailand, Malaysia and Japan. The main headquarter of this company is in Meguro,
Tokyo. In Malaysia, the factory is in Sungai Petani which has more than 2 215 employees
include 9 Japanese Staff) 19.6% of them are male while 80.4 % are female. The average
age of employees in this company is 29 years old. This company is lead by Mr. Kenji
Omi and he has 4 directors which in charge in different area.
Figure 1.2: Minebea Motor Corporation Organization
Souce: http://www.m-mmotor.com/english/company/organization.html
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1.5.4. ENVIRONMENTAL PHILOSOPHY
The important of this environmental philosophy is to make their community became
unity, safe and to achieve their motto: the world class number one manufacturing. This
policy have been established on August 26, 1993 and revised on September 1, 2003.
Minebea strives to contribute to higher quality, more comfortable lifestyles by providing
truly valuable products and services. At the same time, the Company works to minimize
the environmental burden of its various activities and promote greater harmony, thereby
contributing to the preservation and improvement of a healthy environment.
1.5.5. ENVIRONMENTAL POLICY
1.5.5.1. Development/Design
Minebea shall focus on the development and design of products that contain no
chemical substances harmful to the environment or the health and safety of humans
consume little energy and satisfy the "3R" criteria, that is, can be "reduced," "reused"
or "recycled
1.5.5.2. Manufacturing
Minebea shall set targets and restructure and revise its manufacturing procedures by
using materials that contain no chemical substances harmful to the environment or the
health and safety of humans, thereby improving yield, reducing waste output and
lowering energy consumption.
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1.5.5.3. Distribution
Minebea shall employ packaging materials that contain no chemical substances
harmful to the environment or the health and safely of humans and satisfy the "3R"
criteria, as well as procedures that lower energy consumption and prevent the release
of harmful substances.
1.5.5.4. Cooperation with Authorities and Local Public Entities
When coordinating manufacturing and/or distribution activities in other countries,
Minebea shall observe environment-related rules and regulations imposed by local
authorities and support environmental protection efforts of local communities. At the
same time, Minebea shall take a proactive approach to sharing new environmental
protection technologies.
1.5.5.5. Overseas Activities
In its manufacturing and distribution activities overseas, Minebea shall observe
environment-related protection rules and regulations imposed by local authorities and
do its best to preserve the environment in adjacent areas. Minebea shall also be an
aggressive supplier of new environmental protection technologies.
1.5.5.6. Environmental Audits
Minebea shall conduct periodical environmental audits at all of its production and
other facilities with the aim of ensuring the effective implementation of its
environmental management system and improving the system as necessary.
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1.5.5.7. Employee Education
Minebea shall require employees to attend related courses to encourage their
involvement in environmental protection activities in the workplace and at home.
1.5.5.8. Observe Minebea's Environmental Policy
All Minebea Group employees and other individual working at our sites shall adhere
to Minebea's Environmental Policy. If any individual has an environment-related
concern, he or she shall report it promptly to his or her manager, who shall respond
promptly.
1.5.6. THE PRODUCT
In Minebea Electronics Motor (M) Sdn Bhd there are 4 main products which produce in
here. There are:
1.5.6.1. Fan motor:
Fan motors rotate fans to cool the inside of PCs and other office automation (OA)
equipment by directing heat outside. Minebea Motor manufactures high-end fan
motors with Minebea ball bearings, and fan motors with long-life sleeve bearings.
Bearings are crucial to motor precision. Minebea Motor manufactures high-end fan
motors with Minebea ball bearings, and fan motors with long-life sleeve bearings,
which make a great contribution to motor precision and reliability. Most of parts used
in these motors - from ball bearings, casing, impellor, shaft and magnet - other than
winding and lead wires are produced in-house, giving Minebea Motor unmatched
advantage in terms of quality, supply capabilities, manufacturing costs and speed of
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delivery. A manufacturing facility in China for global markets employs Minebea
Motor's vertically integrated manufacturing system, whereby all processes from
production of components to final
1.5.6.2. Hybrid type stepping motor:
These motors rotate at fixed angles by digitally controlled electronic pulses and are
used in the paper-feeding devices of printers, copy machines, facsimiles and similar
equipment. Hybrid-type stepping motor combines a rotor with a permanent magnet
and a magnetic body using ball bearings. Bearings are crucial to motor precision.
Minebea Motor's hybrid type stepping motors use high-precision ball bearings
manufactured in-house greatly contributing to the precision and reliability of these
products. Most of parts used in these motors - from ball bearings, shaft and hub, base
and magnet - other than winding and lead wires are produced in-house, giving
Minebea Motor unmatched advantage in terms of quality, supply capabilities,
manufacturing costs and speed of delivery. A manufacturing plant in Thailand for
global markets employs Minebea Motor's vertically integrated manufacturing system,
whereby all processes from production of components to final assembly are
conducted in-house. Assembly is conducted in-house. Design and developments
centers are located in Japan.
1.5.6.3. DC Motor:
These motors are mainly used for driving digital AV equipment and PC peripherals,
and for automotive electronic components. Motors, used in increasingly compact
appliances, have become smaller over the years as above equipment has become
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smaller. The flat-type oval motors, which meet demand for smaller and slimmer
components, are becoming mainstream products. The technical innovations to
achieve higher output include higher winding space factors and improved magnet
materials. With the improved magnetizing methods and optimized commentator and
brush materials for their modes of use. All products have ELV/ RoHS compliance.
1.5.6.4. Vibration motor:
These motors are integral to mobile phones and PDAs. The motors come equipped
with three terminal shapes (shrimp, fin and dolphin) as standard. The contributing is
to more compact sets. Design innovations in construction methods and materials have
achieved a 25% improvement in properties from the previous products with the same
form, and put the new models into volume production.
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1.6. SIGNIFICANCE OF THE PROJECT
Today, Malaysian manufacturing industries depend more on employee and the strategy to
move on and give the competitive advantages. The organizations which have manage their
quality, effort, employee, improvement and communication with continuous and smartly will
be success and gain profit for the company. Therefore it is important to understand and to
identify them. This research will help the company which involved in multilevel worker.
The outcome of the present study hopefully will assist the management to make an effective
and efficient decision of making the continuous improvement in their company. These
studies provide several meaningful facts and practical contributions to the academic body of
knowledge.
1.7. ORGANIZATION OF REPORT
Having provided the overview of this study, statement of research problems, objectives,
contributions and scope of the study, the remaining sections of the dissertation of are as
follows. Chapter 2 discusses the literature review related to this study, development of the
research framework. While in research design and research methodology used in are
presented in chapter 3. Chapter 4 reveals the analysis of findings. Finally the chapter of this
report, chapter 5 will discusses the study of findings, management implications, limitations
and some recommendations for future study. The report ends with a discussion on the
conclusions obtained.
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1.8. THE CONCLUSION
As a conclusion, Kaizen’ program are vital in contributing to the success of the
manufacturing sector as well as the economy growth in Malaysia region in facing the
globalization challenges. Hence, much more efforts should be spent to increase the
competency and efficiency in the aspect of system management in any manufacturing
company. A conceptual framework, as a model for effectively implementing the Kaizen
program, I will be discussed and followed by the review of the related literature and a
description of the proposed framework by Dowlatshahi (1998).
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CHAPTER 2
LITERATURE REVIEW
2. INTRODUCTION
This chapter continues the discussion of the previous chapter which focuses on the background
of the study. Further, reviewing the literature on an overview and definition of management,
electronics, technology, continuous improvement, Kaizen, the important of Kaizen, type of
Kaizen methods, the benefit of implementation Kaizen and key success factors of Kaizen will
discussed in this chapter. This chapter will also discuss the development of theoretical
framework and hypotheses this study.
2.1. OVERVIEW DEFINITION
2.1.1. DEFINITION OF ORGANIZATION AND MANAGEMENT
The main elements in company are employee, employer, workplace, management system
and all attribute which important to involve. However the company must be in good
shape and best condition to achieve the main goal. Even small or large organization,
private or public needs management or organization activities to make their company
survive in business world. Organization can define as a social unit which comprises of
cooperative human and mutually dependent between one with other to achieve individual
goal, group, and organization (James P. Clements and jack Gido, 2004).
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While according to Wikipedia management have describe as the activity which
comprises planning, reorganizing, staffing, leading or directing, and controlling an
organization or effort for the purpose of accomplishing a goal include resourcing
encompasses the deployment and manipulation of human
resources, financial resources, technological resources, and natural resources.
The management is the organization and coordination of the activities of an enterprise in
accordance with certain policies and in achievement of clearly defined objectives.
Management is often included as a factor of production along with machines, materials,
and money conducted by the English statesman Sir Thomas More (1478-1535). As
a discipline, management comprises of the interlocking functions of formulating
corporate-policy and organizing, planning, controlling, and directing firm’s
resources to achieve the policy's objectives. The size of management can range from
one person in a small firm to hundreds or thousands of managers
in multinational companies. In large firms the directors formulates the policy which is
implemented by the chief executive officer. Some business analysts and financiers accord
the highest importance to the quality and experience of the managers in evaluating an
organizations current and future worth.
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2.1.2. DEFINITION OF TECHNOLOGY AND ELECTRONIC
Technology is a general term of human daily activity. Every man use this technology to
make their life more means and easy. There is the benefit and weakness of technology for
example human get lazier to be done their work by their self. From the website source
internal network for SME’s (INSME) Technology is a human innovation in action that
involves the generation of knowledge and processes to develop systems that solve
problems and extend human capabilities. While the meaning of electronic is concerned
with or using devices that operate on principles governing the behavior of electrons)
2.1.3. DEFINITION OF KAIZEN
2.1.3.1. KAIZEN
In the simple definition, Kaizen is continuous improvement. The changes which make
little or small but always have it all the time. The period of Kaizen program it’s up to
the company. Some companies have implement this program and the result may out
in short time or long time. Most of companies whose implement this program have
been bigger company like Honda. Kaizen program is not implement in manufacturing
only, there are in education area, human resource department and in life too. Kaizen
is important actively to follow to have the changes in our life.
Kaizen Institute founder and Chairman Masaaki Imai argue most companies are still
failing to understand and implement Kaizen correctly. Kaizen literally means
“changes for the better”, and is, first of all, a mindset and a commitment. The attitude
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is that we are never satisfied with the status quo, and believe that there are always a
better way to do the job. It is particularly important that top management adopt this
mindset, and makes the commitment, if they truly want to compete successfully at a
global level. From the website Taipei Plus, Kaizen definition is Japanese term for a
gradual approach to ever higher standards in quality enhancement and waste
reduction, through small but continual improvements involving everyone from
the chief executive to the lowest level workers.
According to website Wikipedia The term is a Japanese word adopted into English
referring to a philosophy or practices focusing on continuous improvement in
manufacturing activities, business activities in general, and even life in general,
depending on interpretation and usage. When used in the business sense and applied
to the workplace, Kaizen typically refers to activities that continually improve all
functions of a business, from manufacturing to management and from the CEO to the
assembly line workers. By improving standardized activities and processes, Kaizen
aims to eliminate waste. Kaizen was first implemented in several Japanese businesses
during the Japanese post-war economic miracle and has since spread to businesses
throughout the world.
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2.1.3.2. KAIZEN HISTORY
The history of Kaizen begins after World War II when Toyota first implemented
quality circles in its production process. Quality Circles were formed of workers at
the production site. Mr. Taiichi Ohno, a former Executive Vice-President of Toyota
Motor Company implemented Toyota Production System; -system of continuous
improvement in quality, technology, processes, company culture, productivity, safety
and leadership- was based upon Quality Circle principles and the "Just-in-Time"
concept. This revolutionary concept became very popular in Japan in the 1950s. In
1986 Masaaki Imai introduced to the Western world the Japanese term Kaizen and
made it famous through his book, Kaizen: The Key to Japan's Competitive Success.
2.1.3.3. KAIZEN IMPLEMENTATION
Kaizen implementation is said to operate on the following principles:
 That human resources are the company's most important asset
 That success cannot be achieved by some occasional radical changes alone, but
more so by incremental yet consistently arriving improvements
 That improvement must be based on a statistical or quantitative study of the
performance of the process.
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Figure 2.1: Job Function as Perceived by Japanese Manager
Source: http://dogangokhan.files.wordpress.com/2009/04/Kaizen_job_functions_6x4.png
Thus, under Kaizen, everyone is a valued contributor to the company's success, and
must therefore be given the necessary education and training in order to contribute in
his or her own way on a continuous basis. Everyone in the organization must
genuinely believe in the idea of Kaizen and strive to achieve one small goal at a time,
each of which is considered a step towards the company's over-all success. Every
person must therefore be willing to:
 Learn
 Communicate
 be disciplined
 get involved
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 change
All of this is in order to maximize gains from Kaizen. Management must also be able
to support this Kaizen structure by aligning resources, metrics, rewards, and
incentives to Kaizen principles, encouraging all employees to contribute in their own
ways:
 Management programs that promote Kaizen include but are not limited to the
following
 employee suggestion systems
 recognition systems for employees who exert effort for continuous improvement
 group-oriented suggestion or improvement systems like Quality Circles (small
groups that perform quality improvement activities)
 JIT (Just in time) s a management philosophy aimed at eliminating manufacturing
wastes by producing only the right amount and combination of parts at the right
place at the right time. This is based on the fact that wastes result from any
activity that adds cost without adding value to the product, such as transferring of
inventories from one place to another or even the mere act of storing them.
 5’S: the major result of Kaizen program. The 5’S Process, or simply "5’S", is a
structured program to systematically achieve total organization, cleanliness, and
standardization in the workplace. A well-organized workplace results in a safer,
more efficient, and more productive operation. It boosts the morale of the
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Key Success Factors of Kaizen Program in Minebea Electronics Sdn Bhd
workers, promoting a sense of pride in their work and ownership of their
responsibilities.
Total Productive Maintenance (TPM) refers to a management system for
optimizing the productivity of manufacturing equipment through systematic
equipment maintenance involving employees at all levels. Under TPM, everyone
is involved in keeping the equipment in good working order to minimize
production losses from equipment repairs, assists, set-ups, and the like.
Total Quality Management (TQM) is a structured system for managing the quality
of products, processes, and resources of an organization in order to satisfy its
internal and external customers, as well as its suppliers. Its main objective is
sustained (if not progressive) customer satisfaction through continuous
improvement, which is accomplished by systematic methods for problem solving,
breakthrough achievement, and sustenance of good results (standardization).
In his book, Masaki Imai introduce cycle of Kaizen or called PDCA cycle, which do
activities of plan, do, check and action, the adaption from Deming wheel. This cycle
asserts that every managerial action can be improved by careful application of the
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Figure 2.2: PDCA Cycle
Source: http://en.wikipedia.org/wiki/Kaizen
2.1.3.4. MAJOR RESULT
The major result for Kaizen is to eliminate of waste or Muda (Japan term) and
incorporation of efficiency. The Five S program focuses on having visual order,
organization, cleanliness and standardization. The results you can expect from a Five
S program are: improved profitability, efficiency, service and safety. The principles
underlying a Five S program at first appear to be simple, obvious common sense. And
they are. But until the advent of Five S programs many businesses ignored these basic
principles. "5’S" was invented in Japan, and stands for five (5) Japanese words that
start with the letter 'S': Seiri, Seiton, Seiso, Seiketsu, and Shitsuke. Table 2.1 shows
what these individual words mean.
Japanese Term English Equivalent Meaning in Japanese Context
Seiri Tidiness Throw away all rubbish and unrelated
materials in the workplace
Seiton Orderliness Set everything in proper place for
quick retrieval and storage
Seiso Cleanliness Clean the workplace; everyone
should be a janitor
Seiketsu Standardization Standardize the way of maintaining
cleanliness
Shitsuke Discipline Practice 'Five S' daily - make it a way
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of life; this also means 'commitment'
Table 2.1: 5'S Term
Source from http://www.siliconfareast.com/5’S.htm
Figure 2.3: Kaizen relationship
Source: http://www.12manage.com/images/picture_Kaizen.gif
2.1.3.5. PRINCIPLE OF KAIZEN
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There are 10 basic principle of Kaizen where many organizations used in their system
management (Imai, 1986). There are:
 Say no to status quo, implement new methods and assume they will work
 If something is wrong, correct it
 Accept no excuses and make things happen
 Improve everything continuously
 Abolish old, traditional concepts
 Be economical. Save money through small improvements and spend the saved
money on further improvements
 Empower everyone to take part in problems' solving
 Before making decisions, ask „why” five times to get to the root cause. (5 Why
Method)
 Get information and opinions from multiple people
 Remember that improvement has no limits. Never stop trying to improve
2.1.3.6. THE KAIZEN UMBRELLA
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Basically the usually umbrella would give protection to his consumer but in Kaizen,
his umbrella is to determine the different border of between its self and other
management system. Kaizen umbrella covers such elements like:
2.1.4. THE 5’S

Figure 2.4: Elements in Kaizen umbrella
Source from http://mfiles.pl/en/images/e/e6/KAIZEN.jpg
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5’S should be more than just housekeeping. When properly implemented, 5’S is part of
total Lean Manufacturing Strategy. Many of the benefits and effects are systemic in
nature, i.e. they cannot be evaluated in isolation from the other elements of
Lean. Nevertheless, we have attempted to identify typical improvements in the table
below. Since there seems to be few documented, rigorous studies of 5’S benefits, the
improvements in this table come from the experience of our clients and readers
Benefit Commentary Potential
Improvement
Safety Many 5’S programs use Safety as one of the Up to 70%
S'. An organization's concern for safety can Reduction
be a significant contributor to morale and
pride. It can be measured with Lost Time
Injury rates or other measures of safety
performance.
Space Cleaning out the junk will sometimes open 5%-60%
significant space by itself. If an analysis and Reduction
localized re-layout of departments is part of
the 5’S effort, there may be significant
savings. However, such space savings must
be consolidated into larger blocks of space to
be useful.
Productivity Measurement of productivity can occur in 15%-50%+
many ways and at many levels such as Increase
overall factory productivity, work team
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productivity or micro-motion productivity.
Overall factory productivity is the most
important from a competitive viewpoint but
many other factors can influence this other
than 5’S.
Pride & Morale Pride and morale are notoriously difficult to Significantly
measure but critically important. While there Improved
are survey tools for such measurement, they
are time-consuming. The practical effects are
seen primarily in absenteeism, turnover and
productivity.
Absenteeism Absenteeism results from many causes but 20%-50%
pride and morale are two of the more Reduction
important. Improvements in absenteeism, if
other factors remain constant, can be
assumed as resulting from increased pride
and morale.
Wasted Motion If 5’S teams prepare before-and-after 20%-50%+
spaghetti diagrams, they can measure Reduction
reductions in walking distance. There are,
however, other motion savings at the micro
level (reaching, bending, etc.) that are more
difficult to measure directly.

Kaizen Mind The rigor, discipline and analysis inherent in Number of
5’S can contribute to the development of the Suggestions
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"Kaizen Mind." This is a culturally induced 1500%+
attitude of constantly looking for and Increase
implementing improvement, particularly at
the level of an individual worker or a work
team.
Figure 2.5: 5'S Benefit
Source: http://www.strategosinc.com/5’S_Benefits.htm
2.2.
Literature review above aids theoretical development of Kaizen implementation and the
researchers employed an in-depth study in the research methods. The next chapter lays out
the research methodology that the researches had conducted in order to gain a better
understanding about the phenomena of Kaizen’s involvement in the implementation’s
process in system management.
CHAPTER 3
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METHODOLOGY
3. INTRODUCTION
This chapter continues the discussion of the previous chapter which focuses on the way or
method that was used to seek information that needed. This chapter covers the data collection
method and data analysis method in the research, type of research design, research
instrument and sampling design that are essential to conduct a research. The type of our
research study, from the viewpoint of the objectives, is categorized as exploratory research.
Exploratory research is usually carried out when a researcher wants to explore areas about
which the researcher has little or no knowledge (Ranjit, 1996). In this case, researcher has
conducted a research study to gain knowledge regarding Kaizen and its elements and practice
that are applied in Minebea Electronics Motor (M) Sdn Bhd (MAMM). Qualitative approach
is one in which the inquirer often makes knowledge claims based primarily on constructivist
perspectives or advocacy or participatory perspective or both (Creswell, 2003). In a
qualitative study, deductive mode is not applied whereby researcher does not start with
testing or verifying a theory. Instead, the inductive model of thinking is used, whereby a
theory may emerge during the data collection and analysis phase of the research or be used
relatively late in the research process as a basis for comparison with other theories. For this
study, the best methodology which suitable for the research was chosen and qualitative
method will be applied for it. The qualitative method applies in this study are interview and
questionnaire.
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Figure 3.2: Inductive logic of research in a Qualitative Study (Creswell,2003)
Source: http://eprints.utm.my/2778/1/75211.pdf
3.1. STUDY DESIGN
This research method is methodology of qualitative research. Qualitative method is one
concept that had protected few kind of research to understand and explain social
phenomenon and breaking style to specific topics arrangement. It concern effort to seek out
and throw light on and observation not numerical although found decision which refers on
statistics. As such, qualitative method no concentrated direction information collection. In
case studies, the researcher explores a single entity or phenomenon (“the case”) that bounded
by time and activity (a program, event, process, institution, or social group) and collects
detailed information by using a variety of data collection procedures during a sustained
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period of time (Merriam, 1988). On the other hand these methods strive to get quality
information by give focus on small sample. This qualitative research method had been made
in Minebea Electronics Motor (M) Sdn Bhd.
3.2. DATA GATHERING METHOD
Inside information gathering procedure qualitative approach constitutes four basic method
types namely interview, observation, visual document and image (Creswell, 1994).
According to Hessler (1992), qualitative data gives the researcher depth of 40 understanding
in terms of the inner workings of human organizations. Therefore, the information that
achieved of qualitative approach can give deeper understanding to researcher from internal
work aspect in the organization. There are two applicable data source form this approach to
seek information. There are major data and secondary data.
3.2.1. MAJOR DATA
Primary data are collected specifically for the analysis desired (Hanke and Reitsch,
1994). Major data is original data obtained from result of information method that have
been used. This data generally accurate and sometimes it’s go directly or not directly.
This is because is researcher responsibility to seek information in exactly needed but
doesn’t have to neglect the standard format. As such good strategy should be formed to
seek best data namely through provision constructive questions, right and satisfy of the
objective. There are the major data obtained in this research from interview, but there
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questionnaire that be distribute to employees there for gather other information that could
be help while doing this research.
3.2.2. INTERVIEW
King (1994) defines the research interview as an interview, whose purpose is to gather
descriptions of the life world of the interviewee with respect to interpretation of the
meaning of the described phenomena An interview is a conversation between two or
more people (the interviewer and the interviewee) where questions are asked by the
interviewer to obtain information from the interviewee (Olivia Crosby, 2002). Interview
is made aimed to collect result description interview by honoring explanation given to
explain about something phenomenon. This interview main objective conducted was to
get right and detailed information. This is because by used this method, it involved
information acquisition by face to face. This will give opportunity to researcher to ask
any problems or explain any difficulty on the topics. To obtain good interview result, the
innately talk between researchers with parties which interviewed were made.
3.2.3. OBSERVATION
The term ‘observation’, and in particular ‘participant observation’, is usually used to refer
to methods of generating data which involve the researchers immersing themselves in the
research setting, and systematically observing dimensions of that setting, interactions,
relationships, actions, events and so on (Mason, 1996), and is at the heart of qualitative
research (Esterberg, 2001). According to Merriam (2002), observational data represent a
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firsthand encounter with the phenomenon of interest. Observation is the best technique
when an activity, event, or situation can be observed firsthand, when a fresh perspective
is desired, or when participants are not able or willing to discuss the phenomenon under
the study. Researcher had undergone observations at this company. Researcher acted as
complete observer to obtain information related to the implementation of Kaizen, as they
had influence on the ongoing process of the company. Notes were taken to record the
observations and interpretations of the settings, and also their feeling about what was
happening. Aids such as video or audiotapes, photography, diagrams and charts were
used during observations so that visual images gave additional data that was needed for
research purpose.
In this study researcher has doing one interview with human resource management
officer and also the responsible of management program in this company, Encik Nur
Helmi Bin Nur Jalis. This interview takes place for two-hour long which started on
eleven o'clock morning until one afternoon. In the interview, lots of questions are asked
to get complete information. Among those questions which proposed by researcher was
question replying objective of the study that is about the employees, management, the
community, employees turnover, 5’S, elements of Kaizen (JIT, suggestion box, TQM,
TPM and Quality Circle) and the main question is Kaizen. Apart from that, to ensure the
information was the clear and safe, there are equipment has been in during interview
process that is like voice recorder, camera, and record book for the self record. This will
made the researcher more preparing to make the report easily for this study.
The other way that used by the researcher is questionnaire. This is because questionnaire
is a research instrument consisting of a series of questions and other prompts for the
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purpose of gathering information from respondents. Although they are often designed for
statistical analysis of the responses, this is not always the case. Questionnaires have
advantages over some other types of surveys in that they are cheap, do not require as
much effort from the questioner as verbal or telephone surveys, and often have
standardized answers that make it simple to compile data. Although questionnaires are
sharply limited by the fact that respondents must be able to read the questions and
respond to them by them researcher could gather the information that related to the study
in the fast way.
3.2.4. SECONDARY DATA
Secondary data is the data from other source of other alternative way to seek information
about the research. Secondary data also is the data statistic and were already present and
already exits (Hanke and Reitsch, 1994), where it was gathered to other purpose and not
for study needed only. For example, the data or information that achieved of website.
This data so important because the question that usually be asked during interview are
more complex and important. The basic questions usually achieved of other source.
3.3. DATA
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Media accounts such as journals, books, magazines, newspapers, paper work, case study and
past thesis were taken into account to accomplish this research. These accounts were useful
to provide an overview of the problems that the researchers were investigating. Apart from
easy to use this media resource, it does not require high cost which it the key factor why this
source become choice. They were easily accessible and cheap where they were available in
the library of Sultanah Bahiyah UUM. Internet and electronic text are becoming widely
available; therefore the researchers relied on them to provide relevant and useful data for
their researches. Online database provided by UUM was one of the approaches to obtain
online journals. For example, UUM alone provides this service through Sultanah Bahiyah’s
Library internet’s access. This website provided various facilities to help students to get all
information is wanted. For example the platform which provides electronic journals such as
Emerald in Sigh, IEEE, Science Direct and many more. Apart from that, there are other
website pages also can be used like going Yahoo, Google and others.
3.4. CONCLUSION
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The results of this study, the conclusion is that qualitative research method is one good and
useful method to seek information. This because the information that achieved and gathering
in directly or non-direct sample can be used and adopted even it just the not priority one
information. Through this method, all problems can be directed reaction be obtained
immediately. This will make the researcher report became more acquire complete with full of
quality information. Data collected through interviews, observations, documentations, media
accounts and electronic texts were analyzed by qualitative analysis which had been discussed
previously. The result gained from the analysis was reported in the following chapter.
CHAPTER 4
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DATA ANALYSIS
4. INTRODUCTION
This data analysis of data part would explain survey results or questionnaire were made on one
of the organizations in manufacturing industry. Organization was chosen Minebea Electronics
Motor (M) Sdn Bhd. The researcher has made one interview with human resource management
officer and also the responsible of management program in this company, Encik Nur Helmi Bin
Nur Jalis. The information that has gathered in this interview is about Kaizen’s element which
implementation in that factory.
4.1. THE INTERVIEW
During seeking the information, researcher used 2 ways to collect the data. By using method
of interview and questionnaire, all the needed have achieve. The interview goes so fine and
smooth. While the questionnaire are good, the feedback from employees are very satisfy. The
samples of 30 employee’s area collected and the analysis was make to make the data that
needed. The data from questionnaire have been plot in graph that makes the report more
understand by visual. There are 12 simple objective questions that been ask by researcher and
for the long period while questionnaire be proceed, the no problem from employees. All of
them give full-cooperate to researcher. While in interview, the respondent was someone that
familiar with Kaizen system and the most qualified person to represent the company.
4.1.1. THE MANAGEMENT STYLE PROGRAM
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In Minebea Electronics Motor (M) Sdn Bhd the management program in here seems not
fully implemented Kaizen program 100 percent, this is because there are a few of element
have be implement in here like customers orientated, TQC, TPM, Quality Circler,
suggestion system, discipline in work and JIT. Basic on their motto to be the number one
class world, this company have continue implemented all this elements and have admit
that this element became so important to them. The company always has planning in
doing their quality control like ISO that on schedule every year on April to December. By
joins venture with Matsushitah Motor Corporate in April, this company have large
amount of customers. The strength of this company became more and more when they
became number one in dc manufacturing and became the lead industry.
4.1.2. THE EMPLOYEES
The relation between top management, employer and employees are very unique here.
There are no borders of communications between them, and it seems here when the
management sitting together while break time with their down management and staff.
These companies very appreciate their employees and try to make their employees love
to work there. By gives the intrinsic and extrinsic like bonus, service award, medical
support and taking over their welfare. To company, employees are the most and
important assets to look after because they are very valuable. The management allows
the employees to have their own community to lets their employees happy while
working. There is Big-sister communities which have women memberships that actively
do project in here. When in the visited this community is handling coloring contest for
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their children. There are communities of sport like futsal which have won many
competitions in there like Kosmos Futsal. There are the communities which have
expertise on safety to manage the rescue and emergency case among employees.
4.1.3. THE 5’S
For over view, all the employees and employer seems know and understanding about
this 5’S. Poster and booklet are all over the factory and main office. These make clearly
that the company make 5’S their number one the way to organize them. In this company
employees are not make to adapt this 5’S because 5’S is half on their work. Of course,
not all facilities use these exact words in their own implementation and have substituted
terms better suited to their specific applications. In this company, the 5’S System is
specifically designed to be flexible and integrate directly into other popularly used
workplace management systems like the most widely used is “Lean” or Lean
Manufacturing. Facilities throughout the world are transforming to Lean and other
popularly used techniques for improving facility efficiencies by implementing 5’S first.
The result is helping these facilities identify inefficiencies before taking-on the more
complex and universally applied systems. In fact, many 5’S steps overlap elements of
these other systems. Having 5’S already in place lays the groundwork for a much easier
and a more successful Lean Manufacturing implementation. The 5’S System is
comprised of five steps. Each step plays an integral role in helping facilities successfully
implement and sustain the 5’S System. Once each step has been implemented, the 5’S
System is designed to function indefinitely. To achieve this, managers and work area
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personnel must embrace the system by integrating it into their daily work routines. Keep
in mind, reaching the final step in 5’S signifies the completion of implementation, but
never ends the system. 5’S should continue to cycle through previous steps, as
appropriate, so a facility remains organized for maximum efficiency.
5’
S
Figure 4.1: 5'S in Minebea Electronic (M) Sdn Bhd
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4.1.3.1. SEIRI
Seiri means Sorting: Going through all the tools, materials, etc., in the plant and work
area and keeping only essential items. Everything else is stored or discarded. In this
company, the first 5’S Seiri will eliminate 2 from 7 wastes that they have be focus in
every activity they make. The company focuses more on eliminate the unneeded item
as waste of operation overload and waiting time or lean time. While the 5 waste more
are just minor action on 5’S, because in eliminate the waste of inventory,
transportation, process system, movement factor and other factor there will not have
so many changes to be make. It’s just the minor action that will result the minor
impact. To help facilitate Sort, the company assures proper signage and labeling is
used wherever helpful. Red tag storage locations and directions always are clearly
indicated. Red tag is a method used in the sorting phase of 5’S that involves placing
tags on items to designate their status. Red tags indicate that an item should be
removed from the work area.
Figure 4.2: Red tagging
Source: http://www.graphicproducts.com/5’S_guidesystem.pdf
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4.1.3.2. SEITON
In Seiton or Straighten or Set in Order means focuses on efficiency or more sorting or
sweeping, but the intent is to arrange the tools, equipment and parts in a manner that
promotes work flow. In this company, tools and equipment be kept where they will be
used by used of straighten the flow path, and the process should be set in an order that
maximizes efficiency. For everything there should be place and everything should be
in its place. For this company, the process or activity that make in the second 5’S are
method of First in First out (FIFO) for keeping things, placement special for
everything to put back on place, every item and place have label clearly, easy to see
for detection, easy to access and minima finding times.
Figure 4.3: Pipe marking labels, floor labeling and tagging utilities and gauges displays
contents
Source: http://www.graphicproducts.com/5’S_guidesystem.pdf
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4.1.3.3. SEISO
Sweeping or Shining or Cleanliness: Systematic Cleaning or the need to keep the
workplace clean as well as neat. At the end of each shift, the work area is cleaned up
and everything is restored to its place. This makes it easy to know what goes where
and have confidence that everything is where it should be. The key point is that
maintaining cleanliness should be part of the daily work - not an occasional activity
initiated when things get too messy. In this company the activity of Seiso are practice
SEISO 5-10 minutes daily, assign keeper to each machine, combined cleaning (Seiso)
with inspection, comfortable in workplace, the management of equipment cost
decrease and the increase the organization's image and cooperation in gotong-royong.
4.1.3.4. SEIKETSU
Bring the meaning of standardizing which the work practices or operating in a
consistent and standardized fashion. Everyone knows exactly what his or her
responsibilities are to keep above 3S's. Ensure 3S continuously performed the control
visually through color and picture, created the orderly work schedule and systematic,
uniformity through regulations and work procedures (Operating Standard Procedure)
and help on reducing mistake and negligence when have a job. The activities that
perform in this 5’S in this company are audit checking by top management and
competition of 5’s interring department in every month.
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4.1.3.5. SHITSUKE
Sustaining the discipline: Refers to maintaining and reviewing standards. Once the
previous 4S's have been established, they become the new way to operate. Maintain
the focus on this new way of operating, and do not allow a gradual decline back to the
old ways of operating. However, when an issue arises such as a suggested
improvement, a new way of working, a new tool or a new output requirement, then a
review of the first 4S's is appropriate. To achieve this last 5’S employee and employer
must discipline themselves to smile always, provide campaign, competition, be good
listeners, encourage continuing practice and Kaizen’s oriented, show team spirit,
provide continuous training, feel proud with organization, punctual time, environment
in workplace always in good conditions and follow the rule.
4.2. THE QUESTIONNAIRE
Other than interview, researcher also using accumulated data source like questionnaire. As
much 30 sample of employee have be taken. Questions survey on the basis of age, position,
salary, period serve, education of employees and general question of Kaizen. The samples of
this 30 employee represent the employees in Minebea Electronic (M) Sdn Bhd.
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4.2.1. PROFILE OF RESPONDENT’S
Nu. Question Number of employees Percent
Questio (people)
(%)
n
1 Age:
20 years and below 2 6.67
21 years to 31 years 7 23.33
41 years and above 11 36.67
30 100
2 Position or level in companies:

Operate 5 16.67
Supervisor 1 3.33
Technician 1 3.33
Department HR 5 16.67
Other 18 60
30 100
3 Salary:
RM 500 and above 12 40
RM 1000 and above 8 26.66
RM 2000 and above 5 16.67
Other 5 16.67
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30 100
4 How long you have been working here:
2 years below 15 50
11 years above 0 0
30 100
5 Level of education
SPM 2 6.67
Diploma 13 43.33
Degree 5 16.67
Other 10 33.33
30 100
Table 4.1: Table of respondent's profile
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From this table, the company has employ 2 people from age 20 and below with the
low percentage 6.67% , 7 people with percentage 25.33% from range age 21 to 30,
10 people from range age 31 to 40, 33.33% and 11 people with the top percentage
more than 36% from 41 and above. May be look in here more senior employees
like to work here, because of the feel proud n comfortable while working here. The
royalty for their loving company which was satisfy them on their period of work.
The linking want to show in this data is, the companies very motivate in employ
people and only employ the quality one whose have more experience to create the
quality employees. The sample of 30 employees have made in social department.
From data, most of the samples are work or position as manager department, office
assistant, senior manager, junior manager, clerk, secretary and office boys with 18
people with percentage of 60%. In position of operate and human resource there are
5 people for each position by 16.67%. While in this department only have 1
supervisor and 1 technician that have on duty on one time with the lowest
percentage 3.33%. The linking of this question is the company didn’t discrimination
the population of top management with down management and the support workers.
They can work as 1 community and there no problem or argument while work that
extent their relation and make more comfortable while in working no pressure while
working among the top management. The collective of 30 people from different
position will tell the linking between. Most of these employees receive lowest salary
from company, above RM 500 with 12 people and the percentage 40% but this
company has give their salary based on their education and experience while work
in here or other place. Because the profile of respondents was taken from social
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department, the highest salary in this data was RM 5500 by one of senior manager.
The employees with salary RM 1000 and above are 8 people with percentage
26.66% and for salary RM 2000 above and other salary each with 5 people and
percentage 5 % each. For the period of services the percentage of 2 years and below
working is 15 people with 50% percentage. Then 3 to 5 years is 10 people with
percentage about 33.33% and for 6 to 10 years working is about 5 people with
16.67%. There are no one of this employees have service or work in here for 11
years and above. This is because this company very maintains their quality in
service and productivity and always employ or recruit new employee. Most of
employees has standard years and don’t want work in this company maybe of their
payment for early retreat. In this table once again, we may be detect in this
department majority of employees have higher education level and the highest
education level is in PhD. For percentage of this level education are SPM just 2
people with percentage 6.67% and Diploma employees for 13 people with 43.33%
the highest percentage. While for Degree and other education level each with 5
people with 16.67% and 10 people with 33.33%. The company still maintain their
employees quality by recruit employees whose have better education level. The
level of education is the most important to avoid non-knowledgeable among their
employees so they could not be hard to training them or for the employees easy
adapt into the Kaizen environment. In this level they eliminate unskilled employee
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4.2.2. AWARENESS AND UNDERSTANDING OF KAIZEN IN MINEBEA
ELECTRONIC SHD BHD
Nu. Question Answer Number of Percentage

Ques. employees (%)
(people)
6 Have you ever been promoted Yes 22 73.33

No 8 26.67
30 100
7 Do you know further about Kaizen and Yes 27 90
understand it
No 2 6.67
Limit. 1 3.33
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30 100
8 Do you involve actively in Kaizen Yes 25 83.33
program
No 5 16.67
30 100
9 Are there any changes in you workplace Yes 30 10

No 0 0
30 100
10 Does the company always give any Yes 30 100
intrinsic or extrinsic (incentive/ reward )

No 0 0
30 100
11 Is Kaizen program easy to follow Yes 25 83.33
No 5 16.67
30 100
12 Do you know about 5’S Yes 30 100
No 0 0
Limit. 0 0
30 100
Table 3.2: Table of awareness and understanding of Kaizen
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In table 4.2, the questionnaires more focus on the awareness and understanding of Kaizen
among the employees. Most of question the answer from employee are 100%
understanding about this philosophy and it’s clearly see like the employees have limit
knowledgeable about 5’S with Kaizen. When the researcher make observation while in
trip, seem the employees very awareness of the poster and bandage about this Kaizen
system and the employees actively involved in it like 5’S, Production Line, Kaiban, JIT
and other. They notice all the changes and improvement that have been done by top
management and agree that Kaizen are easy to follow. While they working here,
company have give so many intrinsic and extrinsic or reward to them like medical,
community club and other facilities. The result of this awareness, 86% of this employees
very awareness, understanding and involve actively in this Japan management
philosophy, Kaizen. But in this table, the issues are why the employees don’t know
further about Kaizen and understand it? Maybe it blame on the company which don’t
promoted the Kaizen’s program all the time. Then why not all the employees actively
involved in Kaizen? And the last one, its Kaizen is hard to follow? All this issues will
discuss further in chapter 5.
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4.3.
Minebea Electronics Motor (M) Sdn Bhd (MAMM) is a factory has implemented two major
of Kaizen element namely 5’S and suggestion system. There are various factors which
propelled MAMM in implementing that standards no matter for organization good, customer
or environment. This motivator factors has inspirit to MAMM to push for organizational
goal. Factors which included also include achievement of organization ' goals elements for
time future. Apart from that, before ensure the success, MAMM had provided
implementation procedures ISO standards. They have identified the processes which involve
and need to be done neatly and consistently. And the resulted from the implementation,
organization have achieved those goals in positive effect on organization such as systematic
management, healthy and safe product guarantee, cost reduction and others. Due to this, it is
clear that that organization having inside certain motive implement the Kaizen program
where their motive would be to give good part to all. As such, detailed processes and right
should be complied while carrying out those standards so that implementation main objective
would be achieved.
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CHAPTER 5
DISCUSSION AND CONCLUSION
5. INTRODUCTION
This last chapter will discuss summary and proposal on study that was carried out. Summary
have make based on result of study that is done must re-evaluated by referring to study
objectives. Apart from that also was stated also on proposal for study future and limitation
encountered throughout process produce this study.
5.1. DISCUSSION
5.1.1. KEY SUCCESS FACTORS IF KAIZEN PROGRAM IMPLEMENTATION
IN MINEBEA SDN BHD.
We carried out a literature review to ascertain the key criteria that need to be in place for
an organization to achieve and, more importantly, sustain continuous improvement. The
review considered in particular the views of Berk (1993), Bessant and Caffyn (1997),
Bounds et al. (1994), Dale and Boaden (1994), Dyason and Kaye (1995), Huda (1992),
Imai (1986), Oakland (1993), and the elements of the self-assessment models outlined
above.
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Based on a synthesis and interpretation of these views, five important and common keys
were identified:
 Leadership;
 Strategic focus;
 Organizational culture and focusing on employees;
 Processes, standardization and measurement;
 Learning from results.
Following further analysis, ten key factors were derived from the review and these are
given below.
 Senior management commitment and involvement.
 Leadership and active commitment to continuous improvement demonstrated by
managers at all levels.
 Focusing on the needs of the customer.
 Integrating continuous improvement activities into the strategic goals across the
whole organization, across boundaries and at all levels.
 Establishing a culture for continuous improvement and encouraging high
involvement innovation.
 Focusing on people.
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 Focusing on critical processes.
 Standardizing achievements in a documented quality management system.
 Establishing measurement and feedback systems.
 Learning from continuous improvement results, the automatic capturing and
sharing of learning.
An attempt was therefore made to identify the linkages and inter-relationships between
the key factors. At this stage the organizational culture and learning from continuous
improvement results were thought to be the “energizers” of the model, with the other
criteria forming the necessary linkages and foundations which had to be present before
improvement could be achieved..
Using this model, the next stage in the study was an attempt to validate it against the
experiences of organizations which had demonstrated a proactive approach to quality and
continuous improvement in terms of either using self-assessment techniques or
establishing other mechanisms or approaches towards quality improvement (such as the
use of ISO 9000 or Investors in People)
Therefore the key success factor if Kaizen program be implementation in Minebea
electronic (M) Sdn Bhd is the implementation of 5’S. Implementation of 5’S begins with
the creation of an internal committee of 5’S Team Leaders. This group is assigned to
manage this system from “Sort” through “Sustain.” Depending on a facility’s size, the
committee may be as small as a single individual or comprised of many 5’S Team
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Leaders. Disciplined leaders, coming from a variety of management, supervisory and
work area personnel levels, there should be actively promoting 5’S from its inception.
Compared with many other workplace efficiency systems, 5’S should take little time to
implement. Of course, each facility must have a strategy for implementation in place to
move forward on 5’S. Researching a facility for 5’S implementation may require several
days of regular facility-wide meetings with work area personnel and 5’S Team Leaders to
gather information and discuss ideas. In some cases, facilities will require a more
comprehensive reorganization during the “Set in Order” step to achieve success. Before
moving forward on any facility reorganization, seek the consent of all potentially affected
managers (Facility Maintenance, Safety, Production Managers, etc). This can help
smooth the transition into 5’S and may even provide new and more effective options for
implementation. Once a facility has developed a formal plan for implementation, the
system can move forward. All personnel are encouraged to actively participate in 5’S.
This requires proper training on how implementation will improve their workplaces. It
should also define each individual’s role and describe the benefits of 5’S. Over the course
of a facility’s 5’S implementation, many long-term benefits will also be realized.
Facilities typically experience many unforeseen benefits from implementing 5’S. One
long-term benefit, commonly experienced, is a reduction in workplace injuries. This, in
turn, can positively impact a multitude of other unforeseen aspects of a facility. Health
care costs may be reduced and even increases in production, through reductions in lost
time, are realized. The list of long-term benefits from 5’S implementation is quite
extensive, but also unique to individual facilities. In one documented implementation by
a national truck trailer manufacturer, 5’S played a central role in helping to reduce
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workplace accidents and related lost time. In a 2003 article by Rick Weber of Trailer-
BodyBuilders.com, Wabash National was found to have reduced its OSHA recordable
incident rate by 44%, which puts it below the industry average. Managers implementing
5’S at the company’s warehouse facility found the days-away-from-work rate was
reduced by 50% and days-away-from-work “workday rate” saw a 67% reduction, in
cases per 100 work area personnel. Although these statistics are fairly dramatic, many
facilities have experienced similar results when 5’S was properly implemented and
sustained.
In 5’s employees commitment and involvement is one of the key factors to Kaizen
implementation. Evidence of employees’ commitment and involvement was sought
through investigating the existence of leadership and direction-setting capability within
the organizations, their propensity for communicating with staff, and whether they
recognized successes. Positive responses to these questions are table 4 in chapter 4. When
asked if employees had known or understanding about Kaizen, 90 percent of the
organizations answered in the affirmative. The organizations all recognized the need for,
and importance of, having strategic aims to identify the purpose of the organization and
its future direction. Few of the organizations (10 percent) had identified didn’t have or
limit knowledge in Kaizen. This is because they are new in this organization and didn’t
have any of Kaizen trainings. Respondents were asked how their actively involved in
Kaizen. Wide range employees were used but 16 percent of the organizations considered
that the information had not been well involved in. When all employees involved actively
for sure the top manager like senior manager and junior manager involved too. These
positions on company are very important because they are the leader on their department.
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They had linked their vision/mission/long term strategic objectives into business plans
and lower level business unit objectives, and some into individual staff work objectives
by using the Investors in People standard. Most of the organizations had a quality policy
and said that this included a commitment to continuous improvement. When asked if
senior management made itself available to speak to staff, the majority of the
organizations thought that it did. In each case a range of examples of actions taken by
senior management as a result of their listening to staff was given. In communicating
successes to staff and expressing recognition, no one approach was evident as preferred,
but the means of recognition was usually tangible in terms of gifts, monetary awards,
letters of praise, certificates, publications in a newsletter etc.
The other key factor is the culture for continuous improvement. Of the organizations,
they thought that the responsibility for quality was seen as belonging to everyone. The
positive responses given to questions relating to the organizations’ culture are given in
interview. The majority of respondents thought that the working culture within their
organization did encourage continuous improvement and this had been influenced by:
 Open communications;
 Spreading the word and raising staff awareness and understanding; and
 Training people in quality concepts.
However, when it came to making mistakes, it appears that blame and punishment are
still the order of the day. One organization said that they were using the internal audit
67
process to actively encourage managers to be more supportive and learn from mistakes.
Another organization used “league tables” to identify and publicize best practice.
The last key factor in this company is Measurement and feedback systems. All of the
organizations confirmed that performance measurement mechanisms were established
and areas for improvement identified. When asked how quality problems were identified
and diagnosed, the following examples were given: through customer complaints and
internal audits, by management and staff, when things went wrong, through inspection
systems, at performance reviews, the number of rejects, at meetings, through customer
satisfaction indexes, through measuring costs, use of the business excellence model,
through staff surveys, by flowcharting processes and at quality workshops.
Areas for improvement were similarly identified through:
 customer complaints;
 audits;
 use of cross functional teams;
 use of self-assessment models;
 staff surveys;
 staff appraisals;
 identified by managers and staff;
 quality improvement programmers;
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 Use of flowcharting of processes.
While all of the organizations responded positively when asked if performance
measurement mechanisms were established, some also highlighted concerns including
measures are not sufficiently based on quality. More geared to delivery and costs. You
get what you measure like less good at non-financial measures and are actively trying to
change that.
5.1.2. THE BARRIER OF KAIZEN PROGRAM
O'Eocha (2000) goes on to list the barriers as perceived loss of control by middle
management, management structure, time, lack of planning, limited resources, space,
communications, lack of feedback, attitudes, personality clashes, lack of recognition, low
morale and low incentive.
5.1.2.1. Insecure Leadership or management – important in Kaizen to procedures
and philosophies are continually questioned, debated and changed. But if the
leadership couldn’t handle having their ideas challenged on a frequent basis then the
organization is destined to become irrelevant or passive. Leaders must be secure
enough to know that the free debate of ideas is healthy and necessary and does not
represent a personal attack on their authority or power. This isn’t to say they
shouldn’t be the final authority on decisions, only that they must allow input from
others and not be surprised or upset when their ideas are tweaked or replaced for
something better or in other way the best communication with other. Leader not
67
should be just observe employees, they should available themselves to be near, so the
employees always love and like to talk with them.
5.1.2.2. Fat on Resources – This may seem counterintuitive, but often times it is
the overabundance of resources that keeps an organization from recognizing the need
for improvement. If you have too many resources then waste is ignored and issues are
solved by more money, more committees and more positions rather than solving the
underlying problem. The invention of new production system that would later be
known as JIT is more flexible to this problem when it will have 3 questions in
whatever situation on. The 3 question like what needed? How much need? And when
needed? This entire question will avoid the waste resource and cost.
5.1.2.3. Unmotivated or non-equipped employees – The understanding that people
are more important than machines and need incentives to keep from slipping into the
“lifer” mentality. By hiring quality people and constantly providing them with
training and education opportunities they also ensure that Kaizen will be skillfully
applied by their front-line employees. If the company hired non-equipped employees
they should have to spend more money on this employee’s education and training.
But in 5’s training is the most important element for each employees and it’s
company responsible for fully it.
67
5.1.3. THE EXTENT OF KAIZEN IMPLEMENTATION IN MINEBEA SDN
BHD
In the research, there are big impacts to Minebea Sdn Bhd while they implement Kaizen
in their system management even though the top and down management didn’t share the
same philosophy. There are lots of benefit that this company gather from implement this
program such as Wasted activity like the decreasing of overproduction, waiting,
unnecessary transportation, defects under-utilization of the workers, mistakes by supplier,
time for orientation and training, time searching for tools & inventory, carrying costs
associated with stored inventory, unnecessary human motion and utilized of floor space
and the increases of safety and morale, product quality and extended equipment life. If
look from here. Why should Kaizen implementation be stop? Kaizen maybe not show the
result in the short period but the result of this implementation will impact the
organization, employer, employees, the system, the production and all elements in one
big organization.
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5.2. STUDY CONSTRAINT
During in research process there are several constraints which need to pass. Main problem
are the difficulty to seek organization wish to be research. This is because it’s difficult to
have full cooperation from this company or organization with students to seek relevant
information their organization. For the example, the limitation of area that student could be
visit for safety and confidential purpose. The other problem was the researcher faced the
limitation of time. The time which gave to finish up this study is short for about three month.
This make the researcher could not process the information process for more obtaining and
more effective. For this reasons, the researcher found that the company doesn’t implemented
the Kaizen management program hundred percent just a few of the method and have to
changes the interview questions for the last minutes. However all these constraints have been
worked out speedily by researcher and the process of gather information continue smoothly.
67
5.3. CONCLUSION
We are now in a world economy. To be effective, we must compete in a global marketplace.
Regardless of what may or may not be done regarding tariffs, anti-dumping, voluntary import
constraints, etc., we must continue to improve based upon the fact that some day we are
going to have to be able to compete on our own. The only "constant" upon which
organizational leaders can rely is change - continuous, rapid, gut-wrenching change. Unless
we learn to lead and manage change, we cannot be competitive. Every organization can be
dramatically better than it is today and will have to be even better tomorrow and the next day.
No matter how good we think we are, by whatever measures we choose, we are not good
enough and, frankly, will never be "good enough" to stop. In order to improve effectiveness
we must focus on what's going on inside the organization to a much greater extent than
what's going on outside the organization. While efforts to inform the public, increase and/or
continue import restraints, etc. are important things to do, they should be addressed only after
we have paid attention to our internal weaknesses. In other words, we must face our task
convinced that the causes for our lack of competitiveness are inside our organizations much
more than they are outside them.
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Key Success Factors of Kaizen Program in Minebea Electronics SDN BHD

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(vi) organization of the report

1.1. BACKGROUND OF THE STUDY

include culture, the life-style and the industry.

improvement in a pursuit of perfection of business activities.” Under this strategy, continuous

improvement is considered to be everybody’s job in an organization, in that any employee

must do his/her job and improve it (Channon, 2005).

called continuous improvement. According to Oxford English Dictionary improvement is an

instance of improving or being improved; the action of improving or being improved or a

thing that improves something or is better than something else.

designed to improve workplace efficiency through facility organization. An offshoot of

a descendent of manufacturing philosophies used in Japan’s post-WWII reconstruction. In

area personnel systematically achieve total organization and standardization in the

1.2. PROBLEM STATEMENT

they maintain the participation from the employees.

managerial objectives to be implemented simultaneously in organizations (Styhre, 2001).

this study intends to answer the following general objective:

o To emanate key success factors if Kaizen program implementation in Minebea

o To study the barrier of Kaizen program.

o To study the extent of Kaizen implementation in Minebea Sdn Bhd.

Kaizen program in these companies.

Table 1.1: Japanese related companies in Malaysia

Source: JETRO (Japan External Trade Organization) Kuala Lumpur from

1.4. SCOPE OF PROJECT

based on the acceptation of company’s employee.

employee from multilevel worker and Japan management environment workplace.

to several employees to devised for a survey or statistical study.

1.5. COMPANY BACKGROUND

1.5.1. COMPANY PROFILE

Minebea Motor Manufacturing Corporation was founded by integration of Minebea Co.,

Minebea Motor Manufacturing Corporation from Minebea-Matsushita Motor

Corporation since July 2007.)

This business integration unites the super-precision instrument processing technology,

product development power of Panasonic Corporation. Minebea-Panasonic; Joint

Corporation is poised to develop and deliver high-value goods through strengthened

capabilities including reduced development time, increased manufacturing capacity, and

improved customer retention activities. These innovations provide the foundation to

in the integrated motor industry

1.5.2. CORPORATE PHILOSOPHY

Figure 1.1: Five management strategies

 Contribute to society by providing a high level of expertise and innovation in the

manufacture of small motor.

Omi and he has 4 directors which in charge in different area.

Figure 1.2: Minebea Motor Corporation Organization

1.5.4. ENVIRONMENTAL PHILOSOPHY

The important of this environmental philosophy is to make their community became

Minebea strives to contribute to higher quality, more comfortable lifestyles by providing

contributing to the preservation and improvement of a healthy environment.

1.5.5. ENVIRONMENTAL POLICY

lowering energy consumption.

Minebea shall employ packaging materials that contain no chemical substances

1.5.5.4. Cooperation with Authorities and Local Public Entities

When coordinating manufacturing and/or distribution activities in other countries,

Minebea shall observe environment-related rules and regulations imposed by local

authorities and support environmental protection efforts of local communities. At the

1.5.5.5. Overseas Activities

In its manufacturing and distribution activities overseas, Minebea shall observe

environment-related protection rules and regulations imposed by local authorities and

aggressive supplier of new environmental protection technologies.

1.5.5.6. Environmental Audits

environmental management system and improving the system as necessary.

1.5.5.7. Employee Education