KAIZEN

Concept and System

Kaizen
•is a Japans economic name formal system
to promote process continuous improve
quality
•A philosophy that calls for people and
their organizations to experience ongoing
improvement at every level
•Focuses on small, incremental change
rather than dramatic innovation without
large capital investment
•The principles is first introduces by Dr.
Edward Deming
 Kaizen Guiding Principles

1. Good processes carry good results

2. Go see for yourself to grab the present
situation
3. Speak with data, direct by facts
4. Take action to contain and remedy root
causes of problems
5. Work as a team
6. Kaizen is everyone’s business
Types of Kaizen
• Gemba (actual workplace)
is an action oriented approach and
improvement activities are carried out in
the actual workplace. Methods or system
use under this type are quality circles and
suggestion system
• Teian (plan)
is a theory-based approach and refers to
the strategic improvement s that are
preferred by the top management.
Implementation of the latest processes and
practices plays the most dominant role.
Methods or system widely used under this
type are JIT and Total quality control
Process vs. Results Management
•Process oriented management focus
on how process are carried out through
the assessment of performance indicators
set by the organization generated by
measuring or observing the process flow
ex. Enrolment process: the enrolling
officer tend to encode student’s profile
correctly and asking follow up
question on data that are not legibly
written (process is slow and time
consuming)
Process vs. Results Management
• Result oriented management basically
disregards how the process flow work but
rather focuses on the results or outcome
obtained
ex. Enrolment process: the enrolling officer
tend to encode student’s profile hurriedly
and does not ask on the data that are not
legibly written with a motivation to reach
target number of enrollees in a short span
of period (process is faster and ten to
cater more clients)
Process vs. Results Management
• Managers who use Kaizen concern themselves first
with the way things are done before they focus on
results. Western management tends to think of
results first, according to Poornima M.
Charantimath, author of “Total Quality
Management.”
• The Kaizen concept dictates that you can’t expect to
get good results until you improve your process for
achieving your desired outcome. For example, in a
process-oriented model, workers are rewarded
through recognition for following a good process
that consists of discipline, time management, skill
development, participation, morale and
communication.
• Both process and result oriented mgt. must be
strongly adopted together as advised by most gurus
to generate successful continuous improvement
strategy
Sample scenario on the use of PDCA
cycle
Plan: Open a new branch or outlet on the
neighboring town
Do: scout for a feasible location which is
accessible to your customer and suppliers as well
Check: conduct an ocular inspection on the
possible target location, assess possible rental
cost, does some interview within the neighboring
community and observe the environment
Act: If the all given requirements are satisfied,
have the lease contract signed
Standard is the best, safest and easiest way,
to achieve and maintain a defined quality
level. It should be:
1. Be simple, clear and conspicuous
2. Be the best, easiest, safest-way-should only
have one at a time
3. Preserve know-how
4. Be guide-lines that enable performance
5. Measurement of tasks delegated
6. Assure quality, cost, delivery and safety
7. Show relationship between cause and effect
Three Dimensions in Improving
Performance
• Quality – is typically among the most essential
criteria customers use to make the purchase
- is usually customers defined and referred to as the
perceived characteristics and features of a product.
• Cost – is generally looked at coming from
manufacturer’s viewpoint, as the overall cost of
making and selling a product. Important factors
being considered are the elimination of waste in
production and process, scrap, inventory, repair,
reject, etc.
• Delivery – refers to bringing the necessary quantity
of products in the right place at the right time. Poor
delivery affects company’s reputation
Speak with Data
• Kaizen is a problem solving process
• Problem must be understood and recognized
• Data are very essential in making sound
solution to every problem that may arise
• Collecting, verifying and analyzing data for
improvement is vital
• Data are referred to the historical information
or records that are kept
• Guides the organization to predict possible
future outcomes that they may encounter and
be avoided
• Reliable data yields reliable results
Kaizen System
I. TQM Control
II.JIT
III.TPM
IV.Policy Development
V. Suggestion System
VI.Small Group Activities
I. TQM Control
• A management tool for improving total
performance
• An organized kaizen activities involving
everyone in the organization from the top
management down to the workers
• It geared towards increased increasing
customers satisfaction through continuous
improvement, building quality into its people
which brings a company a half-way towards
producing quality products and services
II. J.I.T Production System
•An internal process
•A revolutionary way to cut down
inventory and other cost while at the
same time meeting customer’s delivery
needs
•Allows the company to utilize space
intended for warehouse and finances
related thereto for other purposes
•Company must have a good inventory
system and a reliable supplier for such
production system
III.TPM Total Productive Maintenance
• A system that focuses on maintaining all
equipment in top working condition to avoid
breakdowns and delays in manufacturing
process and maintain product quality output
• TPM increases productivity while incurring
modest investment in maintenance and obtain
equipment optimum life cycle
• TPM increases overall equipment effectiveness
of plant equipment and addresses the cause of
accelerated deterioration of an equipment while
creating correct environment between
operators and the equipment to create
ownership
Types of Maintenance
1. Breakdown Maintenance - under this
maintenance, people waits until
equipment fails and repair it. Applicable
when equipment failure does not affect the
operation or production and does not
generate loss on the part of the company
2. Preventive Maintenance – refers to the
daily maintenance of equipment such as
cleaning, inspection, oiling, retightening,
etc. design to retain the healthy condition
of equipment and prevent failure
Types of Maintenance
3. Corrective Maintenance – improves the
equipment and its components. For
instance, providing sturdy casing, tinting
of transparent glass, providing anti-
scratch
4. Maintenance Prevention – refers to the
weakness of current machine that are
sufficiently studied and are incorporated
before commissioning a new equipment
IV. Policy Development
•People follow policy (good/bad). It is also
important therefore that policy must be
clear, well defined and known to all
reflecting the company’s commitment
and orientation. It needs to state the level
of defects or errors that are acceptable
and covers conformance to requirements,
time and money
•Company must ensure that its employees
understood the policy well
V. Suggestion System
• Regarded as individual-oriented Kaizen
• Encourages all employees to talk all their
suggestion orally with supervisors and put them
into actions
• Suggestion system does not entail economic
benefits to the employees
• Number of suggestions is regarded as
important criteria in reviewing the performance
of the worker’s supervisors. Suggestions are
then incorporated to overall Kaizen strategy.
Once suggestions are implemented, it leads to
an upgraded standard
Stages of Suggestion System
Encourage
people to
participate

awards/ Suggestion Improve

recognition cycle proposal

Review,
evaluation &
guidance
 Stages of Suggestion System
1. Encouragement – company must make and
initiate the effort to help workers provide
suggestion, no matter how primitive for the
betterment of the worker’s job and the
workshop
2. Education – management should stress
employees education to provide better
suggestion. Likewise, employees should be
equipped to analyze problems and
environment
3. Efficiency – refers to the economic impact of
the suggestion
VI. Small Group Activities
• Also called as quality circles
• Includes small group activities, informal and voluntary
groups organized to carry out specific tasks in a
workshop environment
• Addresses issues such as cost, safety and productivity. It
searches the problem root causes and eliminating them,
creating standardize solution to prevent reoccurrence of
the problem
• Tools used: fishbone, cause and effect, etc.
• Team members are taught communication skills.
Working and deciding by teams in order to use each
others knowledge and experience
• It introduces team building, higher involvement of
employees, employees learn to analyze and solve
problems