Art of Lean - Kaizen Course

The following files are a derivative of the Kaizen Skills course taught in Toyota Motor
Corporation for many decades. The original supervisor skills course in the 1950’s was
based upon the TWI Job Methods training course. In the 1960’s and 70’s that was
replaced by the P-course taught 3-4 times per year by Shigeo Shingo. Then eventually
this course was created by Toyota’s Training & Education Department and taught
internally to all supervisors and engineers in manufacturing as part of planned
development. This exact course no longer exists and has no doubt been replaced by
something else internally at Toyota.
As a favor Isao Kato the former head of skills development training at Toyota helped us
put together a similar course. The following files are the basics of a five day training
course emphasizing the need for Kaizen and transferring specific skill sets to support this
topic. Please note that this material is not a “5 Day Kaizen Event” which is often
marketed by various consultants in a workshop format in the United States. Those types
of events were extremely scarce inside Toyota and were actually known as “Jisshuken”
events and conducted for intensive study and learning purposes. Later they became a
method for the Toyota Operations Management Consulting Division to help transfer TPS
to the supply base.
Internally however Toyota historically relied much more upon resources such as
managers, supervisors, and engineers to drive continuous improvement within the work
teams. In order to support these activities that generate most of the day to day
improvements (without the extensive workshop format) certain skill sets are required.
The nature of those skills have slightly changed over the years as TPS inside Toyota has
evolved. However they are all essentially a subset of industrial engineering methods
pioneered in the United States. Instead of putting those skills merely in the industrial
engineering community Toyota goes to great lengths to also instill them in the front line
supervisors guiding work teams.
The following files should give you a sense of some of those skills that Toyota built into
its workforce over the past several decades. They include time studies, motion studies,
standardized work, as well as a basic process for thinking about Kaizen. The bulk of the
material is here for you to observe and use in creating a similar course for your own
needs. There is no participant handout complete currently. Also the original
transparencies are not available at this point in time either. However with a little
creativity and effort on your own part you can easily create your own. Good luck with
your efforts in skill building and continuous improvement.
Kaizen
15 Hour Basic Course
SESSION 1
Art of Lean, Inc. 1

www.artoflean.com
Kaizen Course
Instructor’s Guide
I. Opening the Meeting

Introduction and Greeting
• Opening remarks from Operations department, or area manager.

Introduction of the instructor. Opening statement.
I am (name) of the (depart. or area) at (location). We will be studying the

topics of Kaizen (or continuous improvement). These are important concepts
that form a vital part of the Toyota Production System. I look forward to working
with you the next few sessions.
This course is primarily designed for Team Leaders and other leadership
positions in manufacturing, and consists of 5 three hour sessions. Today we will
just cover session one and some of the most basic concepts of work kaizen. I’d
appreciate it if you would please give me your full attention and cooperation.
Feel free to ask questions when necessary. For some of you, parts of this will
seem like review. For others, it may all be new. Let’s work together to make this
a worthwhile course and help each other understand the subject matter.
• Create an informal atmosphere. Try telling a joke. Put the trainees

at ease.
• Note that attendance is recorded but no tests will be given. Point

out the necessity of coming to class on time. Encourage
participation.
• Self-introductions to include: 1) Name, 2) Workplace, 3) Type of

work, 4) Number of team members*, 5) Familiarity with Kaizen*.
*If applicable
• Introduce visiting attendees as necessary. Today we have (name)

of the (area/dept.) at (location).
• Discretely inform visitors or non class participants that they are

welcome to listen but to please refrain from comments or other
actions that will disrupt the proceedings of the class.
All rights reserved 2

II. Role Of A Leader & Shop Floor Problems
1. Definition of a Leader
QUESTION: What is the definition of a Leader?
During this course I will use the word “leader” frequently. I will use the
traditional definition leader, which is:
- someone who looks after other people &

- someone who guides the work of others
Additionally, at Toyota, a leader has four main responsibilities as

measured by the System 5 survey:
- guide your work team

- promote corporate goals
- develop people in your team
- build teamwork
This class is designed mainly for Team Leaders and other supervisors in
manufacturing. However, everyone here whether you are a Team Leader,
Engineer, Manager or Team Member has the opportunity to act as a
leader in the company. Sometimes this can be as simple as leading by
example.
KEY POINT: Make sure everyone in the room realizes they are a leader.
If you are teaching a class of Team Members, this point is not as urgent.
2. Role Of Management and Team Leaders
I’d like you to think about what type of role leaders are expected to play by
management of the company. We have to act on a daily basis in
accordance with the responsibility and authority of our position.
QUESTION: What type of role do you (T/L’s) play in your area every day?

• Prompt the audience to debate their role and have them recognize
the following items listed below. Mainly focus on the things that
they are responsible for in manufacturing.
Show TP 1 - 1 “Role of a Team Leader”
1. Achieve production demand 7. Adherence to policy

2. Ensure quality 8. Work kaizen
3. Reduce cost 9. Delivery of parts
4. Ensure safety 10. Maintain team relations
5. Develop team members 11. Conduct MBP
6. Maintain equipment 12. Other
The point of this discussion is to highlight that the role of a Team Leader is
very broad. The extent of our responsibility and authority may slightly differ by
plant and area but we all have broad responsibilities and play an extremely
important role in manufacturing.
Note: If your class is not comprised of T/L’s this question will have to be altered
to fit the make up of the class.

3. Problems in the Work Site
Fulfilling the role of Team Leader smoothly is not an easy one. As we pointed
out there are many problems in the work site that make fulfilling the role of Team
Leader very difficult.
No matter what area of the company we visit, the same types of problems such
as achieving production demand, ensuring quality, reducing cost, improving
safety and morale face all of us.
For this class I’m going to define these types events that disruptive our jobs as
problems. It is these types of disruptions that we as Team Leaders have to be
alert for, and ready to deal with.
Problems that we as supervisors face fall into many categories such as

production problems, interpersonal relation problems, shop floor discipline
problems, team member development problems etc. For this class we will mainly
focus on problems related to either production, quality, cost, safety, material, or
equipment.
Write On Flipchart: Problems For Kaizen
It is important to understand that we need leaders because there are always

going to be problems. Thus as leaders we have to be ready to deal with them.
Question: What type of manufacturing problems do you have in your work site?
I’d like specific examples not just general statements. Order is not important
please state them as they come to you.

Note: Listen to the problems as they are stated, and write 8 - 10 of them on the
board. Avoid general expressions, steer them towards concrete examples. As
necessary use prompting questions to generate a list that looks as follows.
(1) Quality related Defects, repairs, scrap

(2) Cost related Overtime, scrap, unbalanced work
(3) Safety related Injuries
(4) Production related Not producing to takt time & standardized work
(5) Delivery related Short shipments
(6) Lead time related Excess parts and materials
(7) Work method related Difficult or unorganized work
(8) Process related MRO items, equipment, tools, etc.
(9) Production system Kanban, production schedule
(10) Parts & Materials Storage, conveyance
As you have pointed out, there are many types of problems that occur in our
work areas and exert a disruptive influence on our jobs. Some of these problems
require that we as leaders take actions to drive improvement. How we go about
tackling some of these problems is a primary topic for this course.
Before we begin learning how to approach some of these problems, I would like
to spend some time reviewing the economic necessity for continuous
improvement. We will next review the importance of cost reduction for any
organization and highlight some of the key challenges facing Toyota in
manufacturing.

III. Importance Of Cost Reduction
A. Circumstances Surrounding The Company
In order for Toyota to continue to obtain a profit in our current markets it is

necessary for each of us to understand company policies and objectives while
carrying out our responsibilities as Leaders. For this reason it is important for us
to fully understand the circumstances and competitive reality that surrounds the
company today.
Now I would like for us to take time now to recognize some of the circumstances
surrounding the company and reinforce why we need to conduct TPS activities
company wide.
Show TP 1 - 2a Net Sales & Gross Profit Level
Describe the recent trends of the company in terms of sales, profits and losses
over a representative period of time.
Show TP 1 - 2b Total Company Quality Data
Describe the recent company trends in terms of customer defects, scrap or

rework, warranty claims, or other quality related measures.
Write On Flipchart: if necessary

Show TP 1 - 2c Delivery & Lead-time
Describe the current situation with regards to on-time delivery, inventory, and
lead-time from order to delivery.
Show TP 1 - 2d Price Downs From Customers
If applicable indicate the general price / cost squeeze pressure that the company
is currently facing. Show the trend for the industry, market, or competitor
products if applicable.
As the graphics show, the circumstances surrounding the company are quite
difficult. The competitive realities of manufacturing are extremely harsh. In order
for us to protect our jobs and livelihood it is necessary for us to continually focus
on ways to improve quality, productivity, and delivery, while reducing costs.

B. Pursuit Of Profit
Next we are going to talk more about the pursuit of profit in manufacturing. It is
vital for all leaders and employees in manufacturing to understand the
importance of profit and structure of cost.
As we briefly touched on before it is vital for the company to balance the needs of
its employees, the needs of its shareholders, and the needs of the customers,
and suppliers. Obtaining a continued profit is of foremost importance to all the
above stakeholders.
In order for the company to obtain a profit, equal effort is required from
management of Toyota and production employees. Let’s take a moment and
think about how we secure a profit.
In particular, let’s look at the components of profit: sales price and cost.
Write On Flipchart: Profit = (Sales Price - Cost) X # of units sold
Question: Given this equation, what are the ways to increase profits?
Write On Flipchart: 1) Increase Price

2) Increase # of Units Sold
3) Lower Cost
KEY POINT: After explaining the above 3 ways explain the following points.
Method 1: Raising Price
1) Explain that sales price is ultimately decided by the market place.
-Competition leads us to competitively set our prices.

-Hard to raise prices - Cost downs are the norm.
You can only raise price to increase profit when you are a monopoly, or
have a unique, highly desired product or service that others can not easily
duplicate.

Method 2: Increase the number of units sold
1) The automotive industry is a mature industry, there is a limit to the

overall level of growth we can expect.
-Limits on equipment capacity for us and customers.

-Market demand changes gradually, not suddenly.
2) It is hard to just suddenly increase the sales of our product.
-Without special distinguishing features it is hard to increase

demand for our products.
-We can’t just make as many parts as we would like and sell them.
Customer and the market determine demand.
Method 3: Reduction Of Cost
1) We can, however, alter our production method to lower costs.
-Effectively use machines, equipment, material, parts and labor.

-Only produce what is necessary.
2) Eliminate all elements related to production that do not add value
-Reduce waste.
-Increase the ratio of those items that add value to the customer
Show TP 1 - 3 “Cost Plus & Reduction Principles”

and explain the two ways of looking at cost.
Because we are in a commodity market where supply exceeds demand, it

becomes apparent that it is nearly impossible for us to raise our prices, or
unilaterally set our sales volume to try and increase profits.
As leaders directly involved in manufacturing, it is necessary for us to

focus on cost reduction through activities involving all our employees.

C. Manufacturing And Cost
1) Now we will discuss the cost structure of manufacturing.
The percentage of cost that manufacturing occupies is only a part of the

total cost of a finished good item, and it is not easy to calculate.
The total cost of an object is made up of various costs such as purchased

parts costs, material costs, labor costs, energy costs, depreciation costs,
overhead costs, etc.
Show TP 1 - 4 “Cost Structure (top half only)” and explain the

contents of sales price.
Usually when asked about costs, materials, capital and labor usually
come to mind. However, once we have purchased the equipment, capital
costs are a fixed cost that manufacturing can not directly alter.
Additionally, labor costs in manufacturing are generally less than 10% of
the total cost of manufacturing a product.
So how does a company make more money in manufacturing? We’ve

shown that we can’t raise price, or alter the number of units sold. The
only path available to us in manufacturing is to focus on the way we
manufacture. We have to constantly focus on eliminating every little
bit of waste in the entire system.
2) Now we will discuss some of the elements that make up cost
QUESTION: What actions lead to increased costs in your work areas?
After the audience is done answering you may want to cover some of the
following examples as well.
Examples of answers:
-Overtime
-Scrap & rework
-Machine Downtime & Breakdowns
-Waiting, Walking, Or Other Non-Value Adding Motions
-Inventories Of Work In-Process & Finished Goods Inventories
-Part Shortages or expedited freight

3) Now we will discuss motions & activities that do not add value
As we just highlighted, there are many types of motions and activities that
do not add value in manufacturing. In a later section we will cover
work and waste, and the 7 specific types of waste. Every day examples of
waste that we see are excess walking, waiting, double handling of parts,
watching for machines to finish their cycle, etc.
If you look closely at the movement of machines and equipment there are
many actions such as clamping, unclamping, air feeds, returning to home
position etc., that do not add value to the product.
-Excessive Inventory or Stock
If you look around your work sites, you will notice many instances of final
product, work in process, and spare parts for equipment. If you look closely
at the necessity for these items you will find that there is rarely a need to
hold as much inventory as we do.
Inventory stagnates our work sites. It is a leading contributor to increased

manufacturing cost. Frequently work sites hold extra inventory to feel
safer. However, too much safety stock can also weaken the performance
of a company. For example excess inventory results in lack of space,
risk of obsolete parts, increased carrying costs, material movements
costs, and increased probability of defective parts.
-Material Yield
In molding operations you can notice how much material is thrown away or
targeted for regrind. In painting and silvering operations the same is true, much
material is actually wasted in the manufacturing process. In most types of
manufacturing a whole lot of material is often used to make a small part.
Compare the weight of a cast iron raw material item to the weight
of a finished good. You will probably be surprised. If the use of material
is poor in terms of yield, this will also contribute to increased cost.
-Defects & Rework
No matter what type of manufacturing you are in, it is difficult to get

100% quality products through the whole line all the time. In any process

there is typically some amount of rework or scrap that occurs. These
defective and reworked items represent parts that should have been
high quality and sent to the customer. However, we often have to throw
away defects and rework others. Both of these actions are a type of
waste that we want to minimize since they only add to the cost of
manufacturing. These types of quality defects and rework items are
among the most typical types of waste that add to cost. It is always
important to increase awareness concerning quality defects and
comprehend the need to put effective countermeasures in place to
prevent recurrence.
-Early Production & Over Production
In the course of researching waste it has been observed that the waste of
over production is among the worst types of waste.
Explain: How Over-Production creates waste by example from your

areas or from home.
As you pointed out, one waste creates another set of wasteful actions.
Thus it is important that we not produce too much or too early with respect
to delivery. It is often hard to notice the waste of over production, but if
you follow standardized work you can avoid this pitfall.
D. Importance Of Plant Floor Activities
Of course it is not possible for us as leaders in manufacturing to reduce

all costs in the manufacturing system. Many things are out of our direct
realm of control. Materials, and purchased components are specified
and controlled by other departments. Supplier performance affects our
areas daily. Initial product development and design often lock in 70% of
the cost of an item before we even begin planning for launch in
production.
Show TP 1 - 4 “Manufacturing Cost” (Bottom Half) and explain the

common components of cost.
This graphic depicts the three major categories of costs in manufacturing.
It is important to notice that even though we as leaders in production can’t

directly control all these items, we can still accomplish substantial savings
by using our human capacity for creativity, and common sense.

For leaders and employees in manufacturing it is vital for us to
understand cost because it directly affects our profits and performance.
QUESTION: Why do some companies make more money than their

competitors?
Ask 2 - 3 people the above question, then explain the following.
One reason is because of superior product or technology. All companies

would like to be in the position where they are the sole producers of a
high demand item. Quite often firms enjoy success because they are
first to the market, or hold some type of legal patent protection.
Most companies have few products, however, that fall into the
the category of superior product or technology that can command some
type of high profit niche. The vast majority of companies have to rely
upon being more efficient in order to make a profit. Unless you truly have
a product that no one else can duplicate, eventually competitors enter the
picture, patents expire, or other forms of protection expire.
Being more efficient in production means focusing on the way that we

produce. Advantages can stem from labor efficiency, material
efficiency, yield efficiency, and numerous other areas as well. The
majority of our actions and motions do not add value to the final customer.
Finding ways to eliminate these wastes, or non value added activities, is
a key determinant in our success as a company.
As I have tried to explain, it is very important for us to obtain a profit as a

company. In most areas we don’t enjoy a monopoly position, so it is
important for us to make a higher quality product than our competitors, at
a lower cost, efficiently using what equipment, machines, materials, and
people we have. Efficient combination of these items are what make up
the heart of the Toyota Production System.

IV. HOW TO VIEW & THINK ABOUT KAIZEN
A. METHODS OF INCREASING PRODUCTION
Today we are going to get started by discussing ways of increasing production.
Question: How can we increase production?

What methods might we use to increase production?
• Listen to replies, then review typical responses.
Show TP 1 - 5 “Typical Responses”
- Increase the number of workers

- Increase equipment
- Work longer
- Work harder
- Eliminate waste and overburden from the work
These are the 5 most typical types of responses we get when considering how to
achieve production and efficiency increases. Now I’d like to analyze these types
of answers in a little more detail, and show the category that we want to focus on
in the Toyota Production System and continuous improvement.
Show TP 1 - 6 Methods of Increasing Production (Top half only)
Increase Production By Affecting Work Quantity
Lets look a little more closely at the first three typical ways of increasing
production.
1) Increasing the Number of Workers
Increasing the number of workers is normally the easiest way to increase

production. Unfortunately this is usually not an effective way of generating profit.
Randomly increasing the amount of labor in a work area will increase volume, but
at a cost that frequently outweighs the benefits.
2) Increasing Equipment
Increasing equipment is another method of increasing production. Generally,

however, increasing the amount of equipment also means adding people to
operate it. Evaluated in terms of cost reduction, however, increasing equipment
is by no means cost efficient. Unless program volumes are for example,

increasing by over 30%, adding machines is a very costly proposition and takes
substantial time.
3) Working Longer
Another traditional way of increasing production is by working longer. Working

longer typically means overtime and usually results in working weekends or
holidays. This method of increasing production may be effective if done for
relatively short periods of time, however, overtime as a long term solution can be
counterproductive when we consider the impact it has on worker morale,
workplace safety, as well as wear and tear on the equipment and machinery.
The problem with the above three methods of increasing production is that they
are costly, and rest upon the premise that the output of labor, time, and machines
are fixed and can not be changed. Hence the quantity of work being done being
done must be altered to create a corresponding increase in production output.
Key Point: Have the audience realize that this is a very static and traditional
way of thinking about production. It implies that 1 person with 1
machine can make 100 parts in one hour, and that the only way to
make more is by adding more people, machines, or working longer.
Increase Production By Improving Work Quality
There is however, another way to think about methods for increasing production.
This second way of thinking relies upon the practice of improving the quality of
work performed instead of the quantity.
Show TP 1 - 6 Methods Of Increasing Production (Bottom Half Only)
1) Work Harder
One way of increasing production without adding machines, people, or work time
is to just work harder. In certain situations, like for expedite orders or other
emergency situations it may be possible to increase production by working
harder. We have all faced this type of instance before. However, we all also
know that this is a very poor long term solution. Working harder can only be
sustained for short periods of time. Over the long term it can result in injury,
frustration, and a decline in moral. For this reason we try to avoid it at all cost.

2) Eliminate Waste
Fortunately there is a another way to effectively and efficiently increase

production without increasing the number of people, machines, working harder,
or working longer. At Toyota, we do this by identifying elements of waste in the
process and then taking steps to eliminate it. Elimination of non value adding
activities in the process and product will lead to easier, more efficient work, that
is less costly, and easier to maintain. For reasons of cost, productivity, and
efficiency we should first consider elimination of waste before we resort to any
other method of increasing production or efficiency.
Key Point:
Make sure that everybody understands that “working harder” and “eliminating
waste” are both aimed at increasing production by affecting the quality (not
quantity) of work performed. Specifically in TPS, however, we want to focus
primarily on waste elimination. It is almost always possible to increase
production by first changing the way in which we work. For example, by reducing
walk or waiting time, changing job sequence or layout, we can enable an
employee on one machine, in one hour, to produce 120 parts instead of 100.
B. WASTE RECOGNITION
Definition of Waste
Now I’d like to shift gears and try and define what we mean by waste. The intent
of the Toyota Production System is to raise productivity and reduce costs by
setting standards aimed at the elimination of waste. It is very important then to
understand and be conscious of waste. Let’s take a closer look at what we mean
by “waste”.
Question: How would you define waste?
Answer:
You have given some good answers. Ultimately, waste is anything

that increases the cost of production. Any activities that does not
increase value to the product is waste, and any methods that does
not fit with our goals and objectives is waste.

Work and Waste
In the course of doing continuous improvement we aim to streamline the process

by eliminating waste. In order to really understand what we mean by “waste” it is
important to learn what we mean by “work”. Useful work, or value added work, is
defined as work which “advances the process”. It refers to actions which raise or
increase the value of the part produced. Conversely, behavior which does not
add value is waste.
Show TP 1 - 7 “Work & Waste”
This overhead shows the relationship between work and waste. As you can see,
any motion involved in manufacturing can be thought to consist of 1) waste, 2)
accompanying work, and 3) value added work.
1) Waste
As we briefly discussed above, waste is any element of the operation that does
not add value to the product. Later we will categorize waste into 7 specific types.
2) Accompanying Work
Another part of work is accompanying work. This type of work may be essential
for executing tasks directly related to production, however, it adds no value to the
product.
• Examples include: going to pick up parts, unpacking boxes of

parts, removing small quantities of parts from large pallets, and so
on.
3) Value Added Work
As its name implies value added work is that which actually adds value to the
product. This includes processing, such as molding, painting, and assembling.
The higher the proportion of work that adds value, the greater the efficiency of
the operation.
If you critically observe work carried out at a manufacturing site, you’ll notice that
the proportion of value-added work (net work) is very small, and “work” which
does not add value is large. Looking carefully at work methods, equipment, and
materials, you can find waste everywhere.

Key Point: Even though the percentage of value added activities in any
operation is extremely low, we do not mean to imply that people
are not working hard. On the contrary, everybody in Toyota
does work hard. Inherent in every job-- from the actions of the
CEO to the actions of manufacturing employees, however, is some
element of waste. It is these elements that are non value adding to
our customers that we must seek to identify and eliminate.
C. TYPES OF WASTE
Next I’d like to introduce the 7 categories in which we typically divide waste.
Show TP 1 - 8 “Types of Waste”. .
The seven classification of waste in TPS are:
(1) Waste of correction/repair

(2) Waste of over-production
(3) Waste of processing
(4) Waste of conveyance
(5) Waste of inventory
(6) Waste of motion
(7) Waste of waiting
• Describe each kind of waste as follows:
Waste of Correction/Repair
Waste of correction arises from having to correct defects. All material, time, and
energy involved in repair is waste. Even if a defective part can be repaired, its
quality is often inevitably impaired. In addition, time, materials, energy, and labor
costs are required to make repairs. All repairs raise costs. Consequently,
attention should be given to avoiding the waste of repair.
• Ask for examples of repair / correction from the audience, or provide

some of your own.

Waste of Over-Production
The waste of over-production results from excessive production. This kind of

waste can be further classified into two sub-categories.
1) Producing more parts than required;

2) Producing parts earlier than required (right part but wrong time)
Both forms of waste are undesirable, however, particular attention must be paid
to the latter since parts should not be produced earlier than necessary. Quite
often we make parts because that is what the schedule called for. However, if
we are not making exactly what we are suppose to be shipping next, we have a
major problem on our hands.
At Toyota, we focus on the concept of Just-In-Time. We try to make only what is

needed, when it is needed, in the quantity needed. Making too much or too soon
is waste.
Waste occurs when an operator uses a machine simply because it is big,

expensive, and capable of making lots of parts. Ignoring the required production
volume and producing too much is waste. Keep this in mind - producing things
that don’t sell is waste.
• Ask for examples of overproduction, or provide some of your own.
At Toyota, we consider the waste of over-production to be the most serious. This

is because it can create other kinds of waste as a result. Producing more parts
than required results in unnecessary use of labor-hours, equipment, electricity,
oil, and other resources.
Producing more parts than needed and producing parts earlier than needed
brings about an increase in the number of pallets and skids required to hold
them. Extra storage space is required. Depending on the quantity produced and
the types of parts, warehouse storage may even be required. Enhanced stock
control, first-in-first-out, and re-handling parts becomes necessary. All of these
activities increase work, yet add no value to the final product.
Finally, excess or buffer stock tends to hide the real causes of problems. As a
result, the need to do continuous improvement or make repairs of machinery and
equipment becomes less obvious.

Show TP 1 - 9 “Waste Of Over Production Invites Other Waste”
In this way, the waste of over-production precipitates other kinds of waste. Costs
keep rising and quality may be adversely affected. Maximum attention must
therefore be paid to controlling and eliminating the waste of over-production.
Return To TP 1 - 8 “Types Of Waste
Waste in Processing
The waste of processing refers to any unnecessary work done to the part.
Anything which does not contribute to advancing the process, to the accuracy of
the formed part, or exceeds specification, is a waste of processing. There are
many instances of parts being processed excessively. For example, parts which
only require rough surfaces (non critical surfaces not apparent to the customer)
may be excessively finished. Redundant inspection or checking may also be
thought of as an example of waste in processing.
• Ask for examples from the audience, or provide some of your own.
Waste of Conveyance
The waste of conveyance refers to waste incurred by unnecessarily transporting

parts. Parts should be moved only to the extent required to meet JIT production.
Both the transport of parts and information is important. However, it must be

minimized. Transportation itself adds no value to the product.
• Ask the audience for examples, or provide some of your own.
Waste of Inventory
The waste of inventory refers to holding excessive stock. The result of holding a
greater amount of running inventory than necessary between processes, or from
purchasing an excessive quantity of materials is waste.
• Ask the audience for examples or provide some of your own.
Stock is often a security measure taken in case an emergency situation arises.

At the same time, however, stock increases waste. It tends to hide the real
causes behind the emergency or breakdown. Serious or chronic problems go
unnoticed. As a result, real causes are overlooked; improvements are not made
and the recurrence of problems will not be prevented.

Waste of Motion
The waste of motion refers to actions of team members or machinery which do

not add value during the work process. One example of the waste of motion is
that of a team member searching for parts in a storage area because there are
none nearby.
Waste of motion also occurs when machines are not laid out properly. When
machines and floor team members are separated from each other, it becomes
inconvenient and a lot of time and effort is wasted in walking.
Waste of Waiting
Waiting is a form of waste. One example is when--due to the poor combination

of human and machine work-- individuals are forced to stand and wait while a
machine performs a certain operation. Another instance may be when an entire
assembly area is halted while a Team Leader or material handler searches for
needed materials or supplies.
• Ask for examples or provide some of your own.
D. UNEVENNESS AND OVERBURDEN
Now we have thoroughly covered the concept and types of waste. Remember
that eliminating waste is a goal of the Toyota Production System. It cannot be
ignored when taking measures to reduce costs.
Now let’s take a look at two other less famous, but equally important factors that
relate to waste: unevenness and overburden. These are factors related to waste
which cause variations in the process, output, quality, safety, and raise costs.

Show TP 1 - 10 “Waste, Unevenness, and Overburden”.
Unevenness
Unevenness refers to the phenomena of process fluctuations that result when

production schedules are not constant or reliable. Typically what happens is that
out of our fear of shutting down the customer we keep enough parts, material,
and people around to always be prepared for the maximum demand that can be
placed upon us. Consequently, for normal or low periods of demand we have far
too many items on hand compared to what we really need.
The effects of unevenness are manifested in many different ways. For example,
if the quantity of parts used varies from day to day, inventory will fluctuate. No
matter how good our computer systems are, inevitably errors will result that may
create instances of temporary material shortages. Or, in a work area where
manual work is performed, when the amount of work performed by each team
member is different or uneven it is difficult to truly grasp where the waste,
problems, or inefficiencies exist in a system.
Overburden
There are limits to the abilities of both machines and team members. If, for
example, the fastest possible cycle time of a rotary press is 60 seconds, it will be
difficult to perform work at a faster rate.
In the case of team members, individual differences result in differences in

working speed. For example, if a new worker is made to do a job at a rate
based on the speed of a more experienced worker, the newer worker will likely
fall behind. Performing work under such conditions jeopardizes quality and
safety. This is potentially a case of overburden in comparison to one’s individual
ability.
Overburden on team members can result in fatigue and constitute unsafe

working practices. Overburden on machinery and equipment leads to
breakdowns and defects. Understanding the concept of overburden does not
mean jumping to the response of anyone who feels tired or overworked. As
leaders however, we must pay attention to newer team members and see that
they get adequate training through Job Instruction. Additionally we must be on
the lookout for opportunities to have people rotate more in areas with strenuous
processes, or make difficult jobs easier through continuous improvement.
Key Point: Remember, by eliminating waste, unevenness and overburden, we

can hold production costs down, and improve key measurements.

E. UNDERSTANDING EFFICIENCY
Improvements in efficiency that ignore the production schedule or customer

demand will result in the waste of overproduction and will not truly improve
overall company efficiency. True improvements in efficiency display their value
by lowering costs. When evaluating efficiency, a key factor to always consider is
the necessary production quantity. We must analyze how the necessary items
can be manufactured, at the right time, with the fewest labor-hours possible.
Next I want to distinguish between two types of efficiency: Individual Efficiency
and Total Efficiency.
Individual Efficiency and Total Efficiency
When considering how to raise company efficiency by elimination of waste, we

must look at efficiency in terms of each process, the whole line encompassing
those processes, and the whole plant which contains many lines. It is crucial to
institute improvements in efficiency that affect the whole plant.
Individual efficiency refers to raising the efficiency of an individual process, line or

machine. As leaders, we must focus on not only individual processes in our own
area but also learn to think systematically on the whole value chain in the plant.
Total efficiency relates to improvements at the process and line level that equate
to numerical benefits that can be observed throughout the whole plant. In
leading continuous improvement, it is critical to learn to think in terms of total
efficiency.
When we think only about individual efficiency it is easy to mistakenly drive

improvements that are actually only apparent and not true.
True Efficiency & Apparent Efficiency
The next concept I want you to understand is that of True Efficiency vs. Apparent
Efficiency. Apparent efficiency refers to raising efficiency by increasing
production without regard for sales, and represents an “efficiency” only in terms
of numbers. For example, if we increase production from 100 units to 120 units
while keeping the number of workers constant, is this an improvement? It is not
true efficiency when the production schedule only calls for 100 units.
True Efficiency is an increase in efficiency by producing customer demand with

the fewest labor-hours and materials possible, and is an improvement in
efficiency that results in reduction of cost. A true example of efficiency is to
produce the same number of units with fewer labor hours, materials, or defects.

Show TP 1 - 11 “True vs. Apparent Efficiency”
When production demand increases, consider first if we can produce with the
same number of manpower hours. Conversely, when the production volume
declines, we must consider how to raise efficiency by using fewer manpower
hours.
Efficiency is used in various ways as a standard for evaluating productivity in

manufacturing. What we must always first consider, however, when discussing
efficiency is “what is the customer demand?”.

V. Kaizen Procedure
In this section we are next going to begin our investigation of the general
procedure for conducting continuous improvement. When focusing on work
related continuous improvement it is extremely important to have strong “kaizen
awareness” and knowledge of the job.
In other words, if we as leaders just tell people to “Do Kaizen!”, unless the
individual or team has some notion or awareness of the need for continuous
improvement efforts will usually go nowhere. Furthermore, unless the people
involved in the kaizen really understand the job, it is hard to generate true results.
To avoid these potential problems it is important to follow a standardized

continuous improvement process. The kaizen process we will be learning is like
problem solving in that it is based upon the scientific method. Scientific method
does not imply that we will be overly academic or complex – it means gathering
facts and following certain steps to help ensure success.
Show TP 1 - 12 “Steps For Kaizen” and explain the following
On the overhead I just put up are the six steps for continuous that we will be
learning. We will go into each of them in greater detail throughout the week.
First, however, I want to point out the similarity to traditional problem solving.
Listen while I read the basic steps involved in problem solving.
Step 1: Identify the Problem

• Clarify the goal
• Relate the importance of the problem
• Clarify the scope, and purpose of your effort
Step 2: Analyze the Cause

• Gather necessary facts & data
• Determine root cause
Step 3: Determine Countermeasures

• Generate ideas
• Evaluate and test ideas

Step 4: Develop Implementation plan
• Formulate detailed plan
• Communicate the plan
Step 5: Implement the plan

• Implement the action items for improvement
Step 6: Confirm Results

• Monitor progress and results of new method
• Evaluate results
• Standardized effective countermeasures / prevent recurrence
The basic pattern for continuous improvement is very similar to the problem
solving steps I just read. When we begin kaizen, we usually are looking to
eliminate some form of waste or make some type of improvement in the work
site. Thus step one is usually identification or discovery of the need for
continuous improvement. Problem solving starts with deviation from a known
standard, and tries to close that gap. Let’s briefly go through the basic steps
involved in continuous improvement.
Basic Steps For Kaizen
Step 1: Clarify the Goal: Discover the necessity for continuous

improvement
First we must establish what we will be trying to improve. Some times the need
is already clear. Other times we have to look very carefully to identify waste.
Targets for continuous improvement typically are related to cost reduction, quality
improvement, safety improvement, work improvement, or reduction of lead time.
Without a target to aim for, and a standard to compare against you can’t measure
true improvements.
Step 2: Analyze the Current Methods
In this step we generate a clear picture of the present situation. This means
when the goals of kaizen have been identified, we must get an accurate grasp of
the present situation and production methods being used. Don’t overlook
anything. In this way, we can study and adopt appropriate plans to achieve your
goals.
An appropriate picture of the present situation should not be based upon

conjecture. Search for the facts as they present themselves. There are various
ways of doing based on your needs and objectives. Then, after assessing the
present situation decide upon which of the following methods will help you to
further understand the situation.

Step 3: Generate Original Ideas
At this stage in continuous improvement we try to come up with original ideas for
dealing with the present situation. Try to base your thinking on the facts.
Observe the facts from a broad perspective; then proceed the formulate original
ideas.
It is a good idea to make judgments over time, not just based upon one sudden
snap shot. Try not to restrict your thinking, and avoid jumping to conclusions. In
this step will try to come up with as many original ideas as possible that might
suit your particular goal.
Step 4: Make a Kaizen Plan
In this stage we attempt to outline a kaizen plan. Review, organize, and

summarize your observations, facts, and ideas into a kaizen plan. Consider the
likelihood of realizing your plan, estimated costs, difficulty of implementation, and
extent to which your goals will be met. Remember that there are many ways of
reaching the same goals. Draw up several proposals. Finally, select the best
plan after considering the feasibility of it actually being successful. Give priority
to work kaizen, and improving overall efficiency.
Step 5: Implement the Plan
In this stage we actually implement the new method. When doing this, it is
necessary to involve and cooperate with related departments and teams.
Results will often not achieve your expectations if you just focus on your area
and ignore other areas that are impacted. The best of ideas can fail if they are
not properly communicated to all parties involved.
It is most important to talk with you team members about why a change is being
made. Obtain their understanding, request their input and cooperation, and then
plan for any additional training that may become necessary. Involving team
member is crucial for continuous improvement to succeed.
Step 6: Evaluate the New Method
In the last stage, after implementing a new method, follow up is necessary.

Check the status of implementation daily and evaluate the difference between
your anticipated results and the actual benefits of your efforts. Often there will be
unexpected small problems that arise and you will need to devise
countermeasures for them. Always remember that continuous improvement is
concerned with obtain results.

In summary I want to re-emphasize the following:
1) The procedure for problem solving and kaizen is basically the same. Both are
based upon the scientific method and follow a Plan-Do-Check-Action model.
2) Any continuous improvement activity needs to be based upon fact, not
opinion. Use facts to objectively and accurately asses a problem.
3) Understand the importance of following all the steps in kaizen. Skipping one
any one of them can undermine your efforts.
Introduction To Main Points Of Kaizen
Now we are going to study a little more about the content of kaizen.
Question: What is Kaizen?
Ask the participants what their definition of kaizen is. Positively encourage
responses and draw opinions and comments from everyone.
I have heard many good points regarding what kaizen is. For the purpose of this
class we will summarize and define kaizen as the following:
Definition of Kaizen
Kaizen is a process of discovering waste in man, machine, material or method

using creative ideas and as little money and time as possible to save cost. It is
not the work of only certain employees. Rather it is something that can be and
should be carried out by all employees according to their respective areas.
Show TP 1 - 13 “What are the problems”
Give the class 5 minutes to write down as many problems as they can find.
Positively judge all ideas and filter through all ideas to come up with the best.
Try and get ideas from each person.
Kaizen means making small improvements as well as big improvements.

Sometimes the progressive accumulation of even little things is important. One
example of continuous improvement that we have adopted in Toyota is the use of
Standardized Work. This document is not fixed or static; it is constantly being
revised. When applied correctly, Standardized Work can identify waste that
related to operations, and surface other problems that result from other un-
standardized items.

Sometimes it helps to view things from a different angle. When on the plant floor,
remembering the following concepts can help you identify improvement
possibilities.
1. Only produce and deliver the right part, at the right time, in the right amount.
The philosophy of producing and delivering the right part, at the right time, in the
right amount is a basic pillar of the Toyota Production System. To enable JIT
various types of standardization are necessary.
2. Separation of man and machine
When observing a person operating a machine, you can often separate tasks into
those that should be performed by a person and those that should be performed
by a machine. It is vital in terms of raising efficiency to clearly distinguish
between the two and separate those elements that machines should do from
those that humans should do. To best grasp the situation it is often necessary to
complete standardized work combination charts.
3. Production lead time.
The time from when we receive an order until the time we ship a part to the
customer is called lead time. Lead time can be broken down into processing
time and stagnant time. Stagnant time includes such items as inventory, work in
process, waiting time, inspection time, conveyance time, etc. Stagnant time adds
no value to the product and should be minimized whenever possible.
4. Visual control
To easily identify waste it is important for the Team Leader to strive to set up a
work area that clearly shows when things are running normally versus when
things are abnormal. Constantly challenge yourself to look for ways to set
standards to show when something is normal versus abnormal.
5. Individual efficiency vs. Total efficiency
For organizations to make big improvements we must often get away from just
looking at individual small items and look for total system efficiencies to improve.
One method for determining what is really necessary in an area is to go back to
customer demand and determine what is takt time, and what am I really suppose
to be producing.

6. Respect for Humanity & Productivity
In any organization the basic question of how do you treat employees must be
answered to achieve harmony between all parts of the company. In Toyota we
believe in fully utilizing the capacity of our employees. Each person is the lead
character in their job, and to improve the overall efficiency of the company mutual
cooperation from all employees is necessary.
7. Countermeasures to prevent recurrence
In every shop there are small and large problems that occur. It is important to
establish countermeasures for each and every one of these problems.
Identifying problems that rarely occur is difficult. Often you are not around to see
all the problems as they occur. As a leader we need to set up methods of
detecting problems in our work area. Often we must investigate ways to display
relevant information such as performance analysis boards, information & key
measurement boards, etc.

VI. Kaizen Step 1: Clarify The Goal
For the remainder of this first session we will now concern ourselves with the all
important first step in kaizen. The first step in any continuous improvement is to
answer the question, “Where do we need to improve?”. In other words we have
to discover the necessary point we are trying to improve.
Write On Flipchart: Step 1 Clarify the goal
Although this sounds easy it is often very difficult to identify where we really need
to improve in an area. To be successful you need to be conscious of several
items. We will now spend some time investigating what makes up process for
best discovery of where to begin improvements.
A. Problem Awareness
One of the first things necessary for discovery of where to do kaizen is a train
called problem awareness.

Problem awareness sounds easy, however, don’t most of you often feel a sense
of relative peace of mind when you walk around your area of responsibility and
observe your equipment, tools, and movement of team members? Usually we
don’t sense a lot of problems in our day to day when we just go through our daily
routines in life.
If we are content with production the way it is, or believe there are no problems,
or that however we are doing things now is the best method, then we will not
improve.

Another way of stating this is that without some type of problem awareness we
won’t be able to identify true opportunities for improvement. Complacency with
the current state means that we are submerging our ability to detect improvement
possibilities.
A famous story has Sir Isaac Newton discovering gravity when an apple fell upon
his head while he was sitting under a tree. However, do you think he really
discovered gravity just seeing an apple fall from a tree? I don’t think so. To
discover and prove a theory such as gravity he had to go though many sessions
of observation and some trial and error. Seeing an apple fall from the tree was
merely his first step in identifying the law of gravity. He saw an apple fall and
was suddenly “aware” that this presented a problem to be understood.
Like this story, in order for us to discover the need for kaizen we have to possess
a certain level of doubt about the way things currently are. For example;
“Couldn’t this job be done easier?”

“Couldn’t this job be done safer?”
“Why do defects occur?”
“Why do we have so much inventory?”
These statements are all examples of looking at things with problem awareness.
If we are satisfied with the current situation, and shut up in our own little world,
then it is very hard for our problem awareness to come out.
For us to understand kaizen it is necessary to be dissatisfied with the current

situation, to have the drive to want to change things, and to approach everything
with the innocent curiosity of a child.
B. Problem Location Recognition
Write On Flipchart: Step 1 Clarify The Goal

Being able to discover problems also means that you are capable of knowing
where such problems are located in your own work area. Important problems for
manufacturing always exist in the areas of daily production, quality, cost, safety,
etc. We as leaders of our areas need to be aware of our current company

management by plan targets, past results, etc. when we begin to identify the
need for doing continuous improvement.
In the area of production we need to constantly be aware of production increases

and decreases (i.e. changes in takt time) as this can determine how much man
power and staffing we need. On the quality front we need to be aware of defect
rates, scrap, and yield as all these affect cost. Other important areas of focus
include lead time and inventory reduction.
In terms of problem location recognition there are various categories that we

need to be conscious of as we go about our daily jobs.
1. Problems that are apparent from the onset
One kind of problem is that which is already apparent. Examples include both
large and small problems such as those that have been diagnosed, but can not
be resolved easily, or are a low priority.
2. Problems from related departments
Another category of problems includes those brought in from other departments,

or outside sources such as suppliers. Most of these occur sporadically, you can’t
tell when they will be brought on. In such cases it is often necessary to take
emergency measures quickly.
3. Hidden problems
This last category of problems are often what leaders are asked to be able to
discover and solve. As leaders we must be on the look out for where these types
of problems lie in our work areas. We need to uncover hidden problems and be
able to identify those that are important and should be tackled first.
C. Methods for discovering waste

C. Methods for Discovering Waste
Often when looking for areas to improve in we have to dig up hidden problems
that aren’t so apparent. To help discover these types of problems we need to
learn to use several methods.

1. Question The Purpose.

C. Methods For Discovering Waste
1. Question The Purpose
The first method for discovering problems deals with questioning purpose. First it
is necessary to have a purpose. All of our actions in manufacturing should be
driven by a goals. However, often in our daily lives we’re doing something simply
out of habit without being aware of the purpose of our actions.
• Give some example of actions we often do without aware of the purpose.
-Brushing our teeth

-Recording defect & yield data
-Recording or cycle counting inventory
Like these above example, if we loose sight of why we are doing something, that
action can turn into an institutionalized practice, or become a form of waste itself.
Thus it is necessary to have a concrete measurable goal in mind when doing

kaizen. When you examine goals carefully you may find you are pursuing two or
three goals at once. For example, when you brush your teeth in the morning,
you are accomplishing several goals at once. One, you are removing particles.
Two, you are preventing plaque build up. Three, you are strengthening your
gums. And four, you are freshening your breath.
By pursuing a concrete goal with a clear purpose, you will be better able to
discover real problems, i.e. points which require kaizen. In manufacturing, we
often have to resort to use of the “five why’s” to question the purpose. This is a
method of pursuing a problem to the root cause by repeatedly asking the
question “why?”. In this way, we can dig to the root cause of a problem.

2. Discovering Waste

2. Discover Waste
A second way of discovering points that need kaizen is to examine your work site
in terms of “Muda” , “Mura” & “Muri” – The English equivalents of these three
words are “Waste”, “Un-evenness”, & “Overburden”. Being able to identify waste
is another way of discovering points that need kaizen. In particular there are
seven types of waste that we need to be on the look our for in operations.
Show TP 1 - 14 “Types Of Waste”
• Explain the seven types of waste by question and answer.

• Have the students think about waste in their own areas.
• Distribute and give about 3 - 5 minutes to fill in the handout.
• After time is up, have class present answers.
Confirm that everyone understands that identifying the seven wastes is another
good way to point out areas for improvement.
Note that by changing the phrasing of the seven wastes we can easily come up
with problems in the traditional categories of Quality, Cost, Safety, Delivery, etc.
3. Production Lead Time

2. Discover Waste
All of you are aware that in manufacturing, quality, quantity, and cost are
extremely important concepts. However, one viewpoint we frequently forget to
consider is that of timing. No matter how well we produce something, if we do
not make it at the right time, it is of little or no value to the customer.

Of course if we are too late in our production timing, the product may have no
value to the customer. Or we may be forced to pay expensive premium freight to
deliver it to them on time. On the other hand however, there is a danger of
making things too early. Few people are likely to notice this type of danger and
the problems it causes.
Over or early production can lead to waste that we forget about. Early or over
production means that inventory is created. Once inventory is created the
following non value added activities occur.
• A place to store the inventory is needed

• Conveyance of the inventory is needed.
• Tools are needed to move the inventory.
• Materials and parts are ordered and consumed earlier than needed.
• Manpower is needed to move, manage, and count the inventory.
• Electricity and other utilities are needed.
• Damage to inventory occurs.
• Inventory gets misplaced, or goes obsolete.
• Other.
Poor timing of production increases the cost of the manufacturing. Either case
of parts not being at the line in time, or too many parts on the line are both
problems that adversely affect cost.
Remember when looking for waste that manufacturing cost is a function of

quality, quantity, and timing.
Typically we call the time from the start of manufacturing from raw material to the
completion of finished goods “lead time”.
Write On Flipchart: Production Lead Time = Processing Time + Non Processing Time
1) Inventory
2) Inspection
3) Conveyance
Processing time refers to the time spent actually performing value added
activities to the part such as cutting, bending, molding, machining, assembling,
etc.
Non process time is the amount of time that product spends between processes
waiting to be completed or shipped to the customer. Examples include waiting,
conveyance, inspection, storage, etc. Of course some of these activities are
important, but none of them truly add value to the customer.

Show TP 1 - 15 “Example of production lead time”
Lets take an example of a part that requires processing of raw material by

forging, machining, heat treat, machining, and assembly that take one month.
The actual amount of processing time is 5 minutes. The amount of non process
time is 715 minutes. The ratio in this case is 1 : 143, (or 0.7%) of process time
to non process time.
In any case a long lead time will drive up costs often without anyone noticing. In
looking for opportunities for improvement never neglect to consider the timing
aspect of manufacturing. We should always be on the lookout for ways to
streamline operations and make material flow more smoothly.
• Explain the difference between processing time and non process time.
• Ask the class if they are aware of their productions lead time.
• Make them think about why it is as long as it is.
• Question what type of problem makes the stagnant time so long.
• Re-emphasize that reducing lead time is often a very good way of eliminating
invisible costs.
4. Separation of man and machine

2. Discover Waste
4. Separation Of Man & Machine
Another excellent way for identifying opportunity for improvement is to distinguish

between man and machine work.
For example imagine a process where a person loads parts into the machine.
Since this is done by hand we can consider this manual or “human work”. Once
the part is loaded a robot then applies butyl or some type of adhesive to the
glass. Since this is done automatically we can consider this “machine work”.
While the robot is cycling the operator is left standing watching until the cycle is
complete. While the robot is cycling the operator is not adding value to the
product. In a sense they are guarding the machine.

When you look at the production floor, most times you will see instances of one
man one machine. If we could somehow take that time where the operator is
guarding the machine and have them do some other value added work then we
would unquestionably be more productive.
Sometimes the distinction between human work and machine work is not to easy
to separate. Often the jobs blend together in continuous motion.
Show TP 1 - 16 “Human Work and Machine Work” Point out the differences.
Like in this example by separating the two types of work can lead us to identify
motions that do not add value, or cause problems. Often improving combinations
of man and machine can lead to increased production without having to increase
the actual number of hours worked.
• Discuss combinations of man and machine work in the students work site.
• Emphasize that it is important to see both types of work in order to make
improvements.
5. Performance Analysis Board

2. Discover Waste
Usually when discussing production capacity we talk in terms of days, or shifts,

or hours. However it is almost impossible to catch the majority of problems in
production when you analyze at this level of detail. One shift of production
includes everything. For example getting started 5 minutes late, waiting for
material handling, equipment breakdowns, and occasionally planned stoppages.
Any number you take at this level of analysis will incorrectly judge the actual
capacity and become the norm. As a result the expectations placed upon
equipment will always be lower than really possible. When a production
increase become necessary, the plant will respond by scheduling additional
shifts, additional manpower, or additional machines that may not be necessary.

In order to discover points that need kaizen it is frequently necessary to analyze
production by hourly units. In other words we have to watch the actual
production output by hour and compare that to the intended capacity. We call
this watching plan versus actual production.
Doing this type of analysis makes it easy to judge planned versus actual
performance and identify all the little problems that stop us from achieving rate.
If there is a huge gap then obviously problems exist that need attention.
Show TP 1 - 17 “Performance Analysis Board”
• Explain how to fill in the chart

• Explain the columns for difference between plan and actual & reason.
• Explain an example using the plan versus actual analysis board.
For example, assume that for a planned production of 100 parts per hour 85
parts were produced during a given hour. Also assume that, however, that
during the next hour 100 parts were produced. We know that the capacity of the
line is 100 parts per hour. We therefore have to find out why only 85 parts were
made during the first hour. In other words we have to find out the root cause.
If the problem is equipment breakdown then we try to find out why it broke down
and take steps to prevent it from happening again.
Proper use of the performance analysis board is extremely useful for identifying
opportunities for improvement.
6. Five S

2. Discover Waste
6. Five S
Five S’s refer to five words in Japanese that all begin with the letter S. In English
they are best translated as: Organization, Orderliness, Cleanliness, Standardized
Clean Up, & Discipline.

The Five S’s are frequently used in context with safety and cleanliness, but they
also have spill over benefits for manufacturing as well. Learning to apply the
Five S’s will help you in identifying opportunities to eliminate waste.
• Write the Five S’s on the board and explain them.
1) Seiri / Organization
2) Seiton / Orderliness
3) Seiso / Cleanliness
4) Seiketsu / Standardized Clean Up
5) Shitsuke / Discipline
Show TP 1 - 18 “Summary Of Five S”
Seiri or Organization is the process of dividing items into those that are
necessary and those that are not necessary. Unnecessary items should be
disposed of immediately. If everything is absolutely necessary then there is no
problem, but rarely is this the case. Extra items laying around are examples of
problems or opportunities for improvement.
Seiton or Orderliness is the process of placing the above remaining items in such
a way that they can be used easily. However, if you have the necessary parts
but arrange them carelessly, they will be hard to locate and use. This means
unnecessary time required to search for something and is an example of waste.
Seiso or Cleanliness refers to the regular cleaning of equipment. When

equipment is covered in oil and dust it is difficult to manufacture quality products.
Contaminants are frequently a cause of quality problems that should be easy to
prevent. Preventing these types of simple problems through diligent cleaning is
an example of kaizen.
Seiketsu / Standardized Clean Up refers to the process of keeping the first three
S’s in order. Maintaining the first three is never easy, but if we can’t maintain it
then that itself is a problem, and point needing kaizen.
Shitsuke or Discipline, the last S’ refers to discipline or following the rules of the
workplace. Discipline can be instilled by training and leadership and can become
second nature over time. As leaders of an area we must all practice good
examples of what we expect others to follow.

The five S’ refer to more than just cleaning. It is an overall process of clarifying,
improving, and installing visual control. Proper application of Five S to a work
site will have many benefits for continuous improvement.
I have just finished covering 6 tools or methods that you can use to identify ways
to improve. Remember that problem identification is only the first step of doing
continuous improvement.
Company policy and objective will determine much of how we work in our daily
lives. However, I hope that all of you will retain an enhanced sense of problem
awareness as you go about your work. If you use these methods that I have
outlined I promise you will find areas for improvement.

VI. Close The Session
No matter where you go in manufacturing there are always problems big and
small that exist. Because there are problems there is a need for managers and
Team Leaders.
In Toyota we are trying to improve the company for the sake of all the
stakeholders, customers, employees, owners, community, and suppliers.
However the environment we face is a tough one. In order to improve the
performance of our company continuous improvement is necessary.
By the efforts of our improvements we can improve the standing of our company.
Our basic method for pursing improvement is the framework of the Toyota
Production System. We must strive to eliminate waste in our work sites and
reduce all unnecessary costs from the system.
Today in Session one, we have covered the basic premise of continuous

improvement and Step 1 of the Kaizen process.
Show TP 1 - 19 “Summary Of Session 1”
In future sessions and after this course the challenge for us is to use these tools
to identify waste and eliminate it to improve quality, improve safety, delivery and
other key measures.
Next in session two we will begin to study how to proceed with the remaining
steps of continuous improvement. Today we only covered step one. The most
important aspect of today was problem awareness. Improved awareness leads
to discovery of many types of problems and opportunities. I ask that each of you
work to increase your problem awareness in your daily activities.
Thank you for your participation. Please be on time tomorrow.

Kaizen
15 Hour Basic Course
SESSION 2
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Continuous Improvement Course
Instructor’s Guide
I. Opening the Meeting

Welcome everyone back to the beginning of session two. Thank them for
their attendance and participation.
• Create an informal atmosphere. Try telling a joke. Put the trainees

at ease.
• Introduce visiting attendees as necessary. Today we have (name)

of the (area/dept.) at (location).
• Discretely inform visitors or non class participants that they are

welcome to listen but to please refrain from comments or other
actions that will disrupt the proceedings of the class.
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A. Review Of Session 1
We will begin today by starting to review the main points of yesterday’s
session.
Show TP 2 - 1 “Review Of Session 1”
Show the TP and review the following main points by asking questions.
1) Role of Supervisor and Problems In the Work Site

a) There are many problems
b) Leading improvement is an important role of the T/L
2) Importance Of Cost Reduction

a) Circumstances Surrounding the Company
b) Pursuit Of Profit
c) Production Methods & Cost
3) How to View & Think About Kaizen

a) Methods Of Increasing Production
b) Work & Waste
c) Definition Of Waste & Types Of Waste
d) Understanding Efficiency
4) Continuous Improvement Procedure

a) 6 Steps For Kaizen
b) Step 1: Clarify the Goal: Discover Need For Improvement
B. Today’s Schedule
Next I will briefly explain the contents of today’s schedule. We will be covering:
1) Kaizen Procedure: Step 2 “Analyzing the Current Situation”

2) Basic Ways Of Analyzing the Current Situation
3) Motion Analysis
4) Work Element Analysis
5) Time Study
6) Standardized Work Review
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II. STEP 2: Analyzing The Current Situation
Once we have identified areas or points needing kaizen, it is next important to
fully investigate the current situation. Yesterday we focused on clarifying the
goal of kaizen, today we wil move into Step 2 of Kaizen: Analyzing The Current
Situation
Show TP 2 - 2 Step 2: Analyze Current Situation
One of the primary factors that determine the success of kaizen is the extent to
which you have correctly grasped the facts surrounding the current situation. If
you don’t have the facts accurately describing the situation you will be unlikely to
obtain good results, and upon occasion may fail to improve anything.
Conducting kaizen in manufacturing requires a good understanding of the

situation. Even if we can not obtain complete and perfect information we must
obtain enough information so that we can safely advance without fear of failure.
I will now cover with you some of the main points to be aware of when
conduction kaizen.
A. Basic Preparation For Performing Kaizen

1) Get The Facts From The Source
In beginning to grasp the current situation there are three basic items you must
strive to include in your analysis of the current situation. One, above all go to
the actual location to get your facts. Don’t rely upon hearsay or rumor. Go the
actual source of the problem. Two, check the actual object that you are
investigating. Don’t rely upon other people, other parts, or other materials to
provide you with all the information. Third, strive to get the facts at the actual
time the problem is occurring . Like the scene of a crime, if you can the see the
problem first hand, you won’t have to spend hours later trying to guess what
actually happened.
The old saying “Seeing Is Believing” is 100% true when conducting kaizen. This
statement stresses the importance of seeing the actual object, at the actual
location, at the time it occurs. Most subjective conjuncture is eliminated when we
are able to see with our own eyes what the problem is. Instead of relying upon
words, a motto of kaizen is always to analyze the actual object, at the actual
location, at the actual time.
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B. Posture When Observing The Current Situation
1) Don’t be swayed by preconceived notions.
All supervisors in manufacturing have lots of experience, thus we have

preconceived notions about the way things are. How many times have you
heard someone say “We have always done it this way, so what’s the
difference?”, or “We tried to fix that once, but the same old issues kept cropping
up?” . Often we fail to really listen to Team Members, or Managers because we
have a preconceived notions that something won’t work.
Particularly when topics of emotional nature come up we rarely used our full
senses of reason to rationally investigate. It is almost impossible to accomplish
accurate analysis including all the key points when we are not calm.
2) Thorough Observation
The more experienced we are the more we tend to judge things based upon
experience. Everyone knows the advantage of experience, but in conducting
kaizen, experience alone will not solve problems.
Usually, difficult problems have multiple causes. Often these causes are
complex and hard to really see. In these cases, experience alone is not enough.
Solving complex problems means going beyond the obvious and digging deep
into the details. If we fail to identify the real problem, our improvement efforts will
often stall.
Because of this, we need to conduct very thorough observations of the problem.

When observing an area be prepared to look beyond the obvious.
3) Calm Attitude
The third item we will address under correct posture is possessing a calm
attitude. Remember, kaizen is not a competition. However, no matter what the
situation, when you are leading an improvement effort you are likely to run into
problems if you lead it as an emotional event.
If you lose your poise during kaizen, it is difficult to make rational judgments with
a high degree of precision. Be sure to separate feelings and people from
problems when observing the current situation.
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C. Analytic Thinking
When conducting the current analysis phase of kaizen, a very analytic mind is
necessary. An analytic mind refers to someone who can state the facts as they
are, not overlook anything, and make accurate observations.
Show TP 2 - 3 “Analytic Thinking” and explain the following items
1) State The Facts As They Are
Stating the facts as they are means recording events as they are for current
operational methods etc. This means not pushing your own opinion, or own
supposition into your observations.
One very effective way to observe the facts as they are is to video tape them.
This method is very effective, and can be observed over and over again. When
conducting current state observation I highly recommend using video camera
when possible.
2) Don’t Overlook Anything
In observing the plant floor no matter how closely you look, it is a struggle to take
in everything correctly. If you follow the guidelines that we outline later in this
class the odds are that you will be less likely to overlook important points or
details.
Depending upon what you are looking at your technique will vary. However in all
instances it is not possible to visit the plant floor 24 hours per day. We will have
to practice looking at the plant floor in a short period of time and obtaining all the
critical information we will need. All information is potentially critical so try not to
overlook anything.
3) Analytic Thinking
Analytic thinking means that you have sufficiently studied the subject and are
able to quantify, classify, and to detail the situation. I will now explain more about
what it means to quantify, classify, and to detail when conducting kaizen.
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To quantify means to express things in terms of numbers or amount related
measurements. The opposite quantitative is qualitative. An example of a
qualitative statement is when you say “Company A has many defects”. A
quantitative statement is that “Company A has 25 defects out of 500 parts”.
It is important for you to understand the following points:
-In daily manufacturing we usually rely upon qualitative statements

Ex. “We are running good today”
“We have a lot of bad parts from the supplier”
-In Kaizen, the above qualitative statements are not enough

-Only quantitative statements give us enough detail to accurately proceed.
• Give an example of how quantitative statements are more effective.
Next we will discuss classifying, or in other words, how to organize data into
categories. For example let us investigate the instance of “5% defects”.
Even knowing that we have 5% defects is not enough information for us to
proceed towards improvement. The 5% figure has to be broken down into further
categories for it to have greater meaning.
For instance one part can be classified many ways in terms of defects:
-Part dimensional accuracy

-Surface finish
-Surface class
-Cosmetics
-etc.
All of these represent categories of defects that once understood and

investigated can take you closer to the root cause of the problem.
Unless you classify data it is usually impossible to identify the actual current
state, and improve the situation.
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Last I want to discuss the concept of detailed analysis. Depending upon the
subject it is often necessary to become extremely detailed in investigation.
Write On Flipchart: Draw the object below and ask how many squares there are.
The closer you look the more you see. If you truly count just squares you should
come up with 14. If you counted rectangles there are as many as 36 hidden in
the picture. (See appendix in back for explanation)
This was just one example, but it illustrates the difficulty of how hard it is to be
detailed in investigation. What looks obvious is often much more complex than
we realize. However, with training and practice we can obtain more skill in being
detailed.
Obtaining skill in being detailed is like becoming an experience worker. When a

veteran operator performs a job it always looks smooth and easy. To obtain this
high level of skill a lot of effort and practice was required.
However, if we conduct a detailed observation, the difference between more

skilled and less skilled individuals becomes clear. The main point I want to
emphasize is:
Skill = Good Method + Practice
If you closely observe skilled workers and their work you can often isolate what in
their method is superior, and if you understand proper Job Instruction
methodology you can then teach those methods to others in a very short period
of time. Studies have shown that skill can be roughly attributed to 80% good
method, and 20% practice. Thus in driving manufacturing improvements we
need to first focus on the method.
As we have just covered, you can develop an eye to see in detailed fashion and
accurately analyze the current state of any manufacturing operation.
This concludes our discussion of posture and attitude for observation and
analysis.
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D. Techniques For Analyzing Current Methods Of Work
In this next section we will be learning some techniques for analyzing current
methods of operation. Depending upon the goal or target, there are various tools
used to analyze how we work. We will now cover some of the more basic of
these techniques.
Show TP 2 - 4 “Various Analysis Techniques” and explain them briefly.
Technique Purpose
Motion Analysis* Detailed Analysis Of Operator Motion
Used To Eliminate Waste In Motion
Element Analysis* Detailed Breakdown Of Work Element
Use Analyze Necessity Of Each Element
Time Study* Time Analysis Of Each Work Element
Used To Determine Time Related Factors
Operation Analysis Analysis Of Percentage Of Value Added Work
Considers Man vs. Machine Work
Process Analysis Analyzes Manufacturing Process
Determines Ratio Of Process 4M’s
Standardized Work Analyzed Efficient Manpower Allocation
Combines Human Work & Machine Work
In addition to the above types of analysis there are various types of support work
that often have to be done. Since this is not a course in industrial engineering we
will not cover them in great detail. Only the first 3 items will be practiced along
with a basic review of Standardized Work.
When considering the topic of current state analysis you can break techniques up
into two categories. The first category is the flow of operation where the product
is physically altered. This is called the “Process”. The second category is the
means by which a person works on a product. This is called the “Operation”.
In this course we are chiefly dealing with the operational aspect of continuous
improvement. For this reason we will predominantly cover the topics of motion
analysis, and work element analysis, and time study in great detail.
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E. Motion Analysis
As I briefly mentioned in the last section, motion analysis is a way of breaking
down a job into its most basic motions. It represents the most detailed level of
visual observation that can be done.
There are different ways to do motion analysis, but in this course we will use the
most basic and user friendly version for supervisors in manufacturing. Once you
have mastered motion analysis it will be much easier to identify non essential
motions in manufacturing. The specific technique we will study is called the
Threblig Analysis Method.
1. Purpose Of Motion Analysis
The chief purpose of direct motion analysis can be summarized as follows.
a. Improvement Of Motion
A major objective of motion analysis is to quantify and detail the current

movements made to complete job. Comprehension of all the movements give us
many ideas in how to establish a focal point for continuous improvement.
b. Establishment Of Motion For New Work
When launching a new program or changing over to a new process the need to
establish the motion for the job occurs. In this case it is often necessary to
analyze the new work in order to determine the major operational steps for
manufacturing. For repetitive manual work this type of analysis is extremely
important.
c. Obtain Greater Motion Awareness
In general this course is about improving your ability to make improvements. By

focusing in on motion you will become more adept at the following:
-Quickly notice wasteful motions in work methods

-Develop skill in quickly determining if a change has resulted in less waste
-Become accustom to thought processes that lead to correct application of kaizen
In summary, by studying motion analysis we will become more analytic and

efficient in our observation and improve our own overall capability.
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2. Into To Therblig Analysis Technique
Having now covered the purpose behind motion analysis, I would now like to
proceed with an actual example of Therblig Analysis. Therblig Analysis was
developed by a man named Gilbreth, and consists of 18 symbols used to analyze
motion down to a minute detailed level.
Show TP 2 - 5 “Example Of Motion Analysis” and explain the following.
I will explain and show you how something as simple as picking up a pen out of a
box and placing it on the table and be analyzed in greater detail.
The actual motions performed to complete this sequence are as follows.
Motion Symbol
1. Reach Out Hand …………………………………Transport Empty
2. Grasp Pencil………………………………………Grasp
3. Pick Up Pencil……………………………………..Disassemble (from table)
4. Carry Pencil……………………………………….Transport Load
5. Set Down Pencil…………………………………..Assemble (to table)
6. Let Go Of Pencil…………………………………..Release
7. Return Hand……………………………………….Empty Transport
In motion analysis we observe motion, analyze it using Therblig symbols, and

attempt to improve the motion. Using this technique can lead to very thoroughly
analyzed improvement opportunities. However, it is not without it flaws. For one, it
is not a very quantitative since it contains no time element. To get at time we
would have to conduct another study. But for now we are just going to concentrate
on Therblig Analysis and how to use the symbols.
Show TP 2 - 6 “Therblig Symbols” and explain the following
I am going to have you practice and memorize these symbols.
• Explain each of the symbols

1) Write the symbols one at a time on flip chart.
2) Explain how to write and the meaning on flip chart
3) Explain the function of each symbol
4) After covering all symbols ask for questions.
• Have the class memorize the symbols

-Have them practice by themselves using their handout (2 - 3 minutes)
-Next test their knowledge. One by one write symbols on the board. For
the first nine anyone can answer then test certain people randomly.
• Practice using the symbols

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-Read practice item #1 (read symbols in order slowly) and have the class
write the corresponding symbols
-Walk around the class and check how everyone is doing
-Have them practice on own time difficult symbols
-Read practice item #1 again a little quicker, and with some change in order
-Check and have them practice difficult ones on their own.
• Proceed to next even if not all people have got it 100%.

• Encourage everyone to practice. When we do shop floor observation it will be
hard to do without having memorized the symbols.
3. Basic Pattern For Motion Analysis
Next I will cover some of the most basic patterns we will encounter for motion
analysis on the plant floor. Quite often there is a basic pattern of consecutive
motion that the operator follows in their job. It is this basic motion that we will next
try to learn. I will use an example to help you understand.
• Distribute the motion analysis paper Type A 3 per person Type B 5 per
person.
• Show TP 2 - 7A “Blank Therblig Sheet (A)” & explain how to use
• Show TP 2 - 7B “Blank Therblig Sheet (B)” & explain how to use
• Show TP 2 - 7C “Basic Pattern - 1” & demonstrate motion
• Show TP 2 - 7D “Basic Pattern - 2” & demonstrate motion
• Show TP 2 - 7E “Basic Pattern - 3” & demonstrate motion
• Ask Questions

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4. Observation Practice For Motion Analysis
Up to this point we have covered the basic meaning of the Therblig symbols and
how to write them. Next I’d like to do some actual practice observation.
Observation is a skill that comes with practice and effort. This exercise will be a
simple one. I’d like everyone to observe, then we will discuss the results of your
observation.
• Prepare the room for motion observation

-Clean off the tops of table
-Ready paper to write on
• Explain the observation process

-Tell the class you will do the observation 10 times. Have them watch
the first few times carefully
-This is just to practice and improve. I don’t expect perfection.
-Don’t talk to others. Just make your own observations.
• Demonstrate exercise #1 “Assemble nuts & bolts”

-Silently, assemble the nuts & bolts as in TP 2 - 7F. Be consistent.
-Have them fill in the work elements column and Therblig column
-Check the progress of the class.
• Check the results of exercise #1

-While the class is working, write the observation form on the board.
-Have 2 people come forward to fill in the columns.
-Present the more complete result of the 2 people, and one by one
correct any mistakes.
-Have the class compare their notes to the correct answer.
-Answer any questions.
Show TP 2 - 7F “Answers To Nuts & Bolt Assembly Exercise”
Motion analysis is a very old detailed observation tool that can be powerful in
analyzing work methods. It has been existence since its development in the
United States in the early 1900’s. However, it is a bit difficult in the beginning, and
some people give up out of frustration. If you take the time to master it, it will be
very useful to you. Please take time to observe some of your own areas more
closely. This practice will give you greater “motion awareness” as I discussed
earlier.
5. Focus Of Kaizen Based Upon Motion Analysis
After you have completed Therblig motion analysis you still have to consider how
you are going to make improvements upon the work.

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Show TP 2 - 8 “Motion Analysis Summary”
• Describe how to look at the observation report

• Mark value added motion is only a couple symbols
Show TP 2 - 9 “Motion Analysis Kaizen”
Here is a simple example of using motion analysis and Therblig symbols to identify
and eliminate waste. The left hand side shows the motion before kaizen where
both hands where not used efficiently. The right hand side shows a more
streamlined method where both hands move to pick up the item, both hands grasp,
carry and position, assemble, release, and return original position.
Note that there are fewer symbols and motions made to the right indicating the
greater efficiency.
Up to this point we have studied the Therblig technique for motion analysis. But I
don’t want you to think that you can go out and do Therblig analysis on any type of
operation. In some cases you may be better off doing time studies or element
analysis.
The following will serve as a guideline as to when to do motion analysis.
a. When investigating detailed actual motion.

b. When jobs are very repetitive. (If the job is not repetitive, motion analysis
won’t do you much good)
c. When there is a very short cycle time, and many small tasks are being done.
d. If cycle time is very long, motion analysis can be applied but you may
need to break the job down into smaller pieces.

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In each of your respective areas, I am certain that you will have some opportunity
to apply Therblig analysis. Please experiment with it and try to improve your
motion analysis.
F. Work Element Analysis

The next area we will cover today is work element analysis. Work element
analysis is something you may already be familiar with in your work areas. Often
documentation on work standards such as operator instruction sheets is written at
this level of detail. Looking closely at the work elements of a job is one way to
investigate continuous improvement.
1. Purpose Of Work Element Analysis
When analyzing the current situation and methods used in manufacturing, work
element analysis can be used in almost every area. Any job can be broken down
into smaller elements so that the truth can be analyzed.
By understanding the elements that make up a job we can identify waste and the
optimal work flow. Used correctly this type of analysis can help you quantitatively,
and accurately grasp the situation.
2. Work Element Analysis
I am going to show you some examples of work elements. Remember, however,

that the correct size of the element to use when conducting element analysis is
debatable. I will try to represent the general agreed upon philosophy for
conducting element analysis. In element analysis we try to break up the work
motion into units one by one that make up the job. The elements thus often
comprise several Therblig motions, and will be a little different flavor from the
previous section on motion analysis that we just covered.
A typical example of work elements in a job is:
1. Obtain part from raw material

2. Carry part to the machine
3. Take finished part out of machine
4. Set raw material in machine
5. Push start switch
6. Put finished good in container.

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Now as I said earlier, there are no concrete rules on how to determine work
elements. After a while, you will learn to develop a feel for how to break down a
job into work elements based upon the purpose of your task. Here is an overhead
that shows you some examples of “good” work elements, and some “poor”
examples as well.
Show TP 2-10A “Examples Of Work Elements” and explain the contents
The top examples in this overhead are quite good. However the ones on the
bottom are not proper for usage in work element analysis. Do you see why?
It may help you to also understand the concept regarding the correct size of
analysis unit to be used.
Show TP 2-10B “Size Of Analysis Unit”
This overhead shows you a telescopic view of how jobs can be broken down into
incredible detail. For example, start at the left side of the overhead labeled “Job”.
Here it says “Make Part A”. However we can break this task of making part A into
greater detail. In this example, making part A consists of “Assembling B & C” and
“Assembling D & E” and putting these two together. We can go deeper however.
The process of assembling B & C together, can be identified as “Placing B & C
together” and then “Screwing B & C together”. Screwing B & C together can be
further broken down into more detailed motions like “Pick Up Driver”, “Insert
Screw”, and “Tighten Screw”. Even the act of picking up the screw driver can be
further broken down into motion elements such as “Stretch out arm”, “Grasp the
driver”, “Lift & disengage from holder”, “Pull driver down to part”, etc.
Usually in work element analysis we do not go into the level of detail displayed on
the right side of the overhead. This starts to get too detailed and comes close to
some of the basic motions we studied in motion analysis. For Work Element
Analysis we will stay around the center of the overhead in the box labeled “Work
Element” or sometimes go a little deeper like the elements under the Motion box.
If you are a little confused, don’t worry, it will become clearer as we go on. I have
an example for you to try and identify work elements on your own.
Show TP 2 - 11A “Layout For Work Element Analysis Practice”
3. Proceeding with work element analysis
The overhead shows you a layout for a manufacturing operation that we will
simulate. As the layout shows we have locations for Raw Material A & B. A Punch
Machine that is actually a hole opener, and a Spot Welding Machine that is actually
a stapler. Use your imagination, please. Also we have an inspection

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table and a chute for loading parts into a package. I will silently conduct the
operation 10 times. At the conclusion you will tell me what the work elements are.
Show TP 2 - 11B “Work Element Analysis Sheet”
While you observe the demonstration I want you to fill in this observation sheet. It
will help you identify the steps I conduct, and identify areas for improvement. We
will also be using these sheets on the plant floor in the next session.
Instructions On How To Fill Out The Sheet
1) In the first column, you will write down the number of each work element in
sequence.
2) In the next column, you will write down the actual work element. For example
pick up part, pack part, etc.
3) In the next column, you will write down specific problems, if any, that relate to
to safety, distance, dimension, quality, or ease of operation.
4) In the next area you will notice the 5W’s and 1H. If you notice something that
is not efficient note it in the appropriate column and jot down any alternative
ideas you may have. For example:
Why? Why are we doing this element? Is it required?

What? What is the necessity of this element?
Where? Is this the best place to do this element?
When? Is this the best time to do the element?
Who? Is this the best person to do the element?
How? Is this the best way how to do it?
5) Lastly, you will see the column entitled ECRS. ECRS stands for Eliminate,
Combine, Rearrange, and Simplify. Ask yourself can any of the elements be
eliminated, combined, rearranged, or simplified? We will cover this topic in
more detail later in session 4.
Note To Instructor:
1) Set up the work area in front to look like the overhead.

2) Be very distinct with your motions so that some people will see many steps and
others will only see the basic elements.
3) Run the demonstration 10 times silently. Have class just watch 2-3 times then
start writing down the steps. Repeat if necessary.
4) Ask the class how many work elements they observed. You should get a
variety of answers from 6 to 16.
5) Write all elements from lowest answer on flip chart.
6) Write all elements from highest answer on flip chart.
7) Discuss the differences with the class.

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Remember, there is no correct answer for this exercise. Depending upon your
purpose, and the level of investigation, the degree to which we break down an
operation will vary. More elements will usually capture more waste.
Show TP 2-11C “Sample Answers For Work Element Analysis”
These are just sample answers they probably don’t exactly match what you wrote
on the flip charts. However they will serve to illustrate my point. If you wrote down
work elements like in sample answer 2 you can probably more easily identify waste
like in elements 2, 4, 6, etc. Being more detailed forces you to look more clearly at
work elements and is a good practice when looking to reduce seconds.
However, Sample Answer 1 has some merits as well. If you were looking to write
a work standard, teach Job Instruction, or do a time study, sometimes fewer work
elements is better.
Neither answer is wrong. In summary, my main request is that you put

considerable thought into how detailed you write down the work elements. Too
general a statement and you will miss all the little problems or opportunities for
improvement associated with that step. Too small a element and you may miss all
the bigger issues around it. Spend a fair amount of time thinking about what is the
appropriate level of detail for you to analyze the situation you are investigating.
If you have been paying close attention you may have noticed that this form we
introduced “Work Element Analysis Sheet” is not only used in Step 2: Analyzing
the Current Situation. By focusing on problems in categories such as safety,
distance, dimensions, quality, and ease of operation, as well as looking at ways to
ECRS (eliminate, combine, rearrange, and simplify) we are edging closer to Step 3
of continuous improvement “Generating Original Ideas”.
The basic pattern for conducting work element analysis is as I have just outlined.
The philosophy and thinking behind it when conducting an observation of the
current state is no different from motion analysis. This concludes our coverage of
the topic of work element analysis. We will practice more in upcoming sessions.

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G. Time Study
Next we will cover the basic points of time study. In later sessions we will
actually go out on the plant floor and make some time measurements. For this
reason we will need to practice a little in advance in the basics of using a stop
watch.
1) Time Reflects Motion
When we do a job, the element of time is greatly affected by how we do the job.
• Use an example to explain how changes in time reflect the method by which
work is done. For example:
-Time differs by your actions at the vending machine for example

-Time differs when filing down a sharp edge depending upon
how coarse or fine of a file you use.
-Time differs when an experienced person performs an operation
versus when an inexperienced person does.
Like in these examples time acts like a shadow, and reflects the time we are
taking to perform a job. Time will be affected by the sequence we perform the
work, materials and tools we use, as well as how we prepare. For this reason,
time in an unbiased judge on how we are performing a certain task and we
frequently use time as a basis for comparison when making improvement.
Always remember that the current time taken to do something is not necessarily
the best. The time required to do a task is not a fixed item that can never be
changed. As job conditions change, so should the time required to complete
them.
Later on the plant floor we will take some time studies and see what conditions
we can affect. In attempting to do kaizen it is often necessary to shorten the
amount of time taken at one or more processes. We will learn to look more
closely at these processes, break them down, and see what can be improved.
2) Time Measurement Instructions
I now want to spend a little time instructing on how to conduct time

measurements. In time study we will take whatever size of element that we
divided the work up into and record them for analysis.

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Time study is a useful skill to have because we need it to fill in the manual and
auto times on Standardized Work Charts. Also it becomes very useful when
measuring other work elements in greater detail as well.
We have already covered the basics of work element analysis in Kaizen Step 2:
Current State Analysis. Now I’d like to briefly review.
In element analysis we look to break jobs down into smaller steps such as “Pick
up Part”, “Carry Part”, “Assemble Part” , “Push Button” etc. These elements may
comprise several motions.
Let’s review by practicing an actual problem. This operation will consist of

“Walking from a chair to a white board, writing a letter, and returning to the chair”.
• Demonstrate the work sequence.

-Instruct everyone to record the work elements.
-Do the motions slowly and consistently
-Do the motions silently 3 times. Repeat if necessary.
-Ask 2 people to identify the work elements.
-Ask the class who has the most elements, who has the fewest.
Show TP 2-12 “Work Element Identification For Time Study”
Work Elements & Timing Points
Again there is no right answer for this exercise, however, these constitute a basic
level of work elements for us to analyze by time.
Before doing a time study it is critical for all of us to agree up the work elements.
If we don’t agree, we will be measuring completely different work elements, and
our individual measurements will have no meaning.
Another critical aspect of conducting time studies is where to insert the

measuring points. For each element you must have a clearly defined and agreed
up start and stop point. We call these points measuring points.
For example in the operation I just performed the act of walking to the white
board can vary by a few seconds depending upon where you start measuring
from. If you don’t carefully determine where you start measuring from your data
will be inconsistent and unreliable. We typically define a measuring point as
where the work element clearly ends.

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Measurement Practice.
Next I would like to explain a little about actual measurement methods. There
are various ways to conduct time studies. I will explain the most basic of the
accepted methods. The most basic type of time study is called the consecutive
time method. In this study you start the watch once and read the times off of it
consecutively. For example, at the respective measurement points you might
read off 5”, 12” 18” …. Consecutively and write them down on your time
measurement form.
After you have timed several cycles you can then go back and calculate the
individual times or in other words the difference between each element.
• Distribute Time Measurement Forms

• Answer questions about time measurement
Let’s go back to our previous example.
Show TP 2 - 12 “Work Element Identification For Time Study”
Not every work element can or should be measured by itself. Some elements we
identify are going to be too small to accurately measure, and others maybe too
big. We often have to adjust. In this example, I’d like to recommend that we
combine the 8 steps down into 4 groups for ease of measurement. Let’s
combine 1 & 2 together, 3 & 4 & 5 together, 6 & 7 together, and have 8 by itself.
• Circle the 4 groups clearly.

• Demonstrate each element
• Show with clear emphasis each ending point of the 4 groups
• Confirm with the class where they will stop / start measuring
• Confirm class comprehension after demonstration
3) Observation & Time Study Practice
If there are no questions I would like to conduct a little practice problem in time
study. This example is useful because it consists of consecutive motion, has
several elements, and is fairly difficult.
Show TP 2 - 13 “Time Observation Form”

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• Explain how to record measurements
-Write down the four groups of elements
1) Stand Up & Walk to Chart
2) Pick Up Marker, Write, & Put Down Marker
3) Return To Chair, Sit Down
4) Sitting
-explain how to record the seconds
• Demonstrate how you will start the exercise

-Clearly indicate the start time
-State when done with a motion
• Explain you will perform operation several times

-perform as needed several times
• Ask if there are any questions about the exercise
4) Conduct Actual Measurement Practice
• Conduct the exercise being very consistent with your actions

• The final cycle stops when you stand to start another
• Not much time is in this section to practice. If necessary report results.
• Conduct the cycle at least 2 times.
• Calculate the measurement results.
5) Organize the Measurement Results
After you have demonstrated the cycles calculate the individual times and fill in
the correct column on the overhead.
• Write a form on the board, or else use overhead TP 2 - 13 and fill in the
individuals measurements.
• Compare answers from around the class
• Wide variance in answers shows lack of clarity on either work elements or
measurement points.

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Time Measurement Practice Problem 2
Show TP 2 - 11C “Sample Answers For Work Element Analysis”
Next I will perform an operation that is a little more manufacturing like. For this
example we will go back to our punch hole, spot weld, inspect and pack example.
Please watch my motions. The purpose of this example is time measurement so
I will give you the work elements this time. Use the elements in sample answer
1.
Preparation
• Distribute blank sheets of time measurement forms

• Explain how to fill out the form
• Have the class fill in the work elements on the form
• Conduct by consecutive measurement method
• Clear everything off the table except the OHP
• Put all necessary items on the table top for the layout
• Review the layout
• Review the operation
• Decide the number of elements for measuring
• Clearly indicate the measuring points
Starting now I will perform the operation 5 times. The first time I will do the cycle
slowly while explaining. Do not time the first cycle. Mentally confirm the contents
of the work elements and the watch for the measurement points. Starting with
the 2nd time through start measuring. Normally, work on the plant floor is done in
continuous fashion. But here in the class room since we are trying to practice I
will stop at the end of each cycle. So you just have to measure 1 cycle
continuously each time.

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Start The 2nd Exercise
• Objective of the first time through

-Have the class confirm the elements and their start points
-Just use one of each sheet.
-After the 1st time through stop and confirm the measurement points
• Runs 2 through 5
-Confirm that all conduct correct measurement methods
-Watch the whole class carefully to see if they are following
• Repeat as necessary until majority of class is finished

• After completion summarize the classes results
-Have the class calculate the cycle times
-Have the class calculate their individual times
• Ready next materials & OHP
Show TP 2 - 13 “Time Observation Form” & explain the following;
1. Have class calculate all the individual times

2. At the bottom fill in the cycle times
3. Enter the times at right using the most repeated time
4. Walk around the room and check while the class fills their own out
5. Write the elements and their numbers on the board or use TP 2-13
6. Compare measurement results
7. Write most representative answers on the board or TP
-Ask 4 - 5 people their measurement results
-For large disparities ask others what they got
8. Show TP 2 - 13 “Time Observation Form (Filled in)” & Summarize
9. Evaluate the measurement results with comments

10. Ask the class their impressions about the time study
11. Encourage everyone to practice in their spare time in their own areas.
12. Clean up the materials and erase the board.

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Basic Instructions For Time Measurement On The Plant Floor
On the plant floor the types of things you will be measuring are not this easy.
Often people man more then one station and there are many work elements.
Depending upon the item produced there may be differences in motion and other
extraordinary work that gets performed.
If you prepare and observe correctly however, you won’t have any problems
making efficient time studies. The following procedure I am going to outline is
not the only one nor will it always work, but it will serve as a good reference for
you in the future.
Show TP 2 - 14 “Basic Instructions for Time Study” & explain
Step 1 Observe the work area. Learn the cycle and motion.
Observe until you know with out having to look what the operator will do
next, where they will go next, and what motion they will perform
Step 2 Write down the work elements
Analyze the work elements and write them down one by one. Adjust the
level of detail of the elements as necessary
Step 3 Measure the entire cycle a couple of times
How many times you measure depends upon the stability or variance in
process. Usually we measure ten times, but five is enough for stable
processes. Note the maximum and minimum times.
Caution: more measurements do not mean greater accuracy, especially

for unstable processes.
Step 4 Calculate the individual splits of each work element.
For extremely brief elements you may need to combine them with other
elements either preceding or following them. Measure continuously.
Step 5 Find the most repeated times. Adjust individual & cycle times.
Write down the most repeated times. Also be sure to investigate the
difference between the cycle time you measured in step 3 and the work
elemental times you measured in 4. When the total of the work elements
measured is greater than the shorter of the cycle times you measured you
may want to adjust down some of the larger elemental work times.

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Caution: You have to be very careful whether you decide to take the
shortest cycle time, an average, or the most repeatable time. Most
lean companies advocate taking the shortest cycle time. The shortest
cycle time represents the instance when everything went right without
waste. This cycle represents what we are trying to achieve on a
sustained basis. Anything that gets in the way represents a problem
to be solved.
For now in Toyota we will take the most repeatable time. But common
sense must be used. If the repeatable time has substantial wait time
or awkward motions included we must eliminate them as we go.
Step 6 Measure / Re-conform unmeasured work elements
If there are any unmeasured elements go back and get their time now.
In step 4, I suggested that you initially combine very short elements with
other. Go back now and calculate them individually
Step 7 Off Line Work Measurement
There are certain types of work that do not occur within every cycle. They
are performed only periodically throughout the day. For example quality
checks, gauging parts, cleaning fixtures, changing pallets, adjusting
equipment, labeling etc. are all instances of off line work.
These types of jobs affect production output and must also be the focus
of kaizen. Thus it is necessary to measure them as well.
This concludes the explanation of shop floor measurement procedures. Please

take the time to practice taking some time measurements in your own areas and
improve your skill in this important area. Remember that taking thorough time
measurements is a fundamental part of Kaizen Step 2: Analyzing the Current
Situation accurately, with data, stating the facts as they are.

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H. Standardized Work
Standardized work can also be used as a tool for kaizen. When used for
improvement purposes Standardized Work can be used to determine the most
efficient method for an operator to perform their work. Primarily this means
manufacturing by the method that builds in quality, safety, and low cost.
Standardized work incorporates time elements in the form of takt time, efficient
work sequence, and standard work in process. Thus when we observe a job that
has been standardized it is quite easy to analyze the current situation.
In this course will we use Standardized Work forms for the purpose of stating the
current situation and investigating improvement opportunities. Looking at the
forms will often tell us where points for improvement are, and how big they are as
well. For example investigating the work sequence will tell us walking distance and
time, wait time, and return time. This will also make it easy for us to identify the
non standardized points out side of the work cell.
As you can see, standardization of work is extremely important for analyzing the
current situation. For this reason creation of standardized work is one of the first
items we are implementing in the Toyota Production System.
Briefly, I’d would now like to review the various forms of Standardized Work.
Here I’d like to distribute a hand out to you summarizing the various forms of
Standardized Work.
• Distribute the handout and explain the following.
Show TP 2 - 15 “Process Capacity Sheet” Read definition & Function
Show TP 2 - 16 “Standardized Work Combination Table” Read Definition &

Function
Show TP 2 - 17 “Standardized Work Chart” Read Definition & Function

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III Closing The Session
How well you do the current state analysis will largely determine how successful
you are in Kaizen. It is extremely important to gather all the necessary
information to accurately grasp the situation
Today we mainly studied motion analysis, and work element analysis as ways to
analyze current work methods. Depending upon the subject, you have to choose
your tools of analysis. The majority of the time motion analysis and work element
analysis will be enough to get you through most situations.
The important things I want to stress about this session are that in analyzing any
current methods you have to go to the actual place where the work is being
done, and look at the actual objects being used. On top of this keep in mind
what it means to be analytical, quantitative, categorical, and detailed. If we just
go forward on hunches and second hand rumors we will not be able to achieve
any real improvement. Get the facts.
Remember that when analyzing work elements of a job, all things; manual work,
machine work, conveyance work, etc. can be broken down into work elements.
There is no rule as to how far to break things down into for elemental analysis.
Use your common sense and what best fits the needs of the situation.
Also remember that in conducting motion analysis you need to practice to be

able to pick up the details of work motion. The more detailed you learn to look
the more waste you will find. Today we learned the Therblig symbols for motion
analysis. Practice using them again and again on your own.
This concludes our study of session 2 and Step 2 of Kaizen: Current Methods
Analysis. In the couples hours we spent studying, we only gained some basic
knowledge of the subject matter. To obtain true skill and improve, we must
practice like any other discipline.
If you take the time to practice these items on your shop floor, I guarantee you
will be able to find many ways to improve.
Tomorrow we will start with session 3 by going to the plant floor and practicing
some of these observation tools. In your spare time review the basics of work
element analysis, and motion analysis.
Thank you for your time and effort. Please be on time tomorrow.

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APPENDIX
How many squares?
Square Size # Total

1 9 9
4 4 4
9 1 1
14
How many rectangles?
Rectangle Size # Total

1 9 9
2 12 12
3 6 6
4 4 4
6 4 4
9 1 1
36

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The following files are a derivative of the Kaizen Skills course taught in Toyota Motor

Art of Lean, Inc. 1

I. Opening the Meeting

• Opening remarks from Operations department, or area manager.

I am (name) of the (depart. or area) at (location). We will be studying the

• Create an informal atmosphere. Try telling a joke. Put the trainees

• Note that attendance is recorded but no tests will be given. Point

• Self-introductions to include: 1) Name, 2) Workplace, 3) Type of

• Introduce visiting attendees as necessary. Today we have (name)

• Discretely inform visitors or non class participants that they are

All rights reserved 2

QUESTION: What is the definition of a Leader?

- someone who looks after other people &

Additionally, at Toyota, a leader has four main responsibilities as

- guide your work team

2. Role Of Management and Team Leaders

All rights reserved 3

Show TP 1 - 1 “Role of a Team Leader”

1. Achieve production demand 7. Adherence to policy

All rights reserved 4

Problems that we as supervisors face fall into many categories such as

Write On Flipchart: Problems For Kaizen

It is important to understand that we need leaders because there are always

All rights reserved 5

(1) Quality related Defects, repairs, scrap

All rights reserved 6

In order for Toyota to continue to obtain a profit in our current markets it is

Show TP 1 - 2a Net Sales & Gross Profit Level

Show TP 1 - 2b Total Company Quality Data

Describe the recent company trends in terms of customer defects, scrap or

Write On Flipchart: if necessary

All rights reserved 7

Show TP 1 - 2d Price Downs From Customers

All rights reserved 8

Write On Flipchart: Profit = (Sales Price - Cost) X # of units sold

Write On Flipchart: 1) Increase Price

Method 1: Raising Price

1) Explain that sales price is ultimately decided by the market place.

-Competition leads us to competitively set our prices.

All rights reserved 9

1) The automotive industry is a mature industry, there is a limit to the

-Limits on equipment capacity for us and customers.

2) It is hard to just suddenly increase the sales of our product.

-Without special distinguishing features it is hard to increase

Method 3: Reduction Of Cost

1) We can, however, alter our production method to lower costs.

-Effectively use machines, equipment, material, parts and labor.

2) Eliminate all elements related to production that do not add value

Show TP 1 - 3 “Cost Plus & Reduction Principles”

Because we are in a commodity market where supply exceeds demand, it

As leaders directly involved in manufacturing, it is necessary for us to

All rights reserved 10

1) Now we will discuss the cost structure of manufacturing.

The percentage of cost that manufacturing occupies is only a part of the

The total cost of an object is made up of various costs such as purchased

Show TP 1 - 4 “Cost Structure (top half only)” and explain the

So how does a company make more money in manufacturing? We’ve

2) Now we will discuss some of the elements that make up cost

QUESTION: What actions lead to increased costs in your work areas?