KAIZEN

Kaizen Program

KAIZEN PROGRAM
An Continuous Improvement Program That Appreciates Ideas

June 2013

KAIZEN PROGRAM

Agenda Items
1 2 3 4 5 6 7 8 9

KAIZEN

Kaizen History & Features Kaizen Program Benefits Kaizen Program Introduction Kaizen Proposal Form Process Overview Kaizen Awards Program Cost vs. Savings

Kaizen Panel
Continuous Improvement
1

1 Kaizen History & Features

KAIZEN

Developed by Japanese companies

A combination of two Japanese symbols: Better & Change (Continuous Improvement) Widely recognized and adopted by many famous Fortune 500 companies world-wide and spreading Participation of the employees on their own initiatives Effective approach for vitalizing organization management Gives credit directly to committed talented staff and managers Starts with many small improvements without significant investment A continuous improvement practices derived from daily work/operations
2

2 Kaizen Program Benefits

KAIZEN

IMPROVE
Quality Process Savings Safety

REDUCE Time Cost Errors Inventory

Staff Satisfaction
Customer Service Resource Utilization

Space
Waste Efforts

Total focus on a defined process to create radical improvement in a short period of time
3

3 Kaizen Program Introduction

KAIZEN

Require minimal resource/budget Managed by 5 Kaizen Panel members Support company objective, goals and strategies Introduction and dissemination of KAIZEN practices

Organized efforts of all company departments/divisions

Sustainable basis for improvement of quality & productivity Project is administered by HR with technical assistance from all units

HR will track the status of all submitted Kaizen ideas and produce reports
It is a strategy to improve things through many small incremental improvements

4 Kaizen Proposal Form

KAIZEN

5 Process Overview
KAIZEN

Kaizen Proposal Form

Supporting Documents

3
6

5 Process Overview
KAIZEN

Submit Idea

Approve Idea

Implement Idea

Champion fill Kaizen Proposal Form Champion attach supporting document(s) Panel member checks if form is complete Panel member assign Kaizen Number

5 Process Overview
KAIZEN

Submit Idea

Approve Idea

Implement Idea

Panel discuss idea with champion (if needed) Panel review and endorse proposal Panel awards Kaizen points Sponsor approve the idea Copy sent to Champion & Sponsor

Kaizen Points
50 100 150 200 250 300

5 Process Overview
KAIZEN

Submit Idea

Approve Idea

Implement Idea

Kaizen Points
500 1000 1500 2000 2500 3000

Sponsor lead the implementation Panel confirm implementation Panel award Kaizen Points Copy sent to Champion & Sponsor

6 Kaizen Awards Example John Smith Kaizen Proposals

2011
Gold Kaizen

KAIZEN

Points
800 1300 3500

Provide More Parking to company Staff Improve Truck Traffic Coming Into Terminal Reduce Custom Clearance Time

2012

Points
600 1100 2700

1
10,000 Points

Prevent Safety Accident in Shipment Yard Include company Banner on 1000 Websites Introduce Recycling Blue Bin Under Each Desk

Total

10,000

10

6 Kaizen Awards Example

Gold Kaizen Silver Kaizen Bronze Kaizen

KAIZEN

1
2
5000 Points
2-Days Hotel Vacation 2 Health Club Memberships Family Boat Cruise with Dinner Silver Gift Voucher 2 COSTA Cruise Vacations Family Health Club Membership 2 Travel Economy Gift Tickets Gold Gift Voucher 11

10,000 Points

3
3,000 Points
1-Day Hotel Vacation 1 Health Club Membership Family Restaurant Dinner Bronze Gift Voucher

YOUR COMPANY

Kaizen Gold Award

10,000 Points

KAIZEN

Mr. John Smith Business Development Division In recognition of your Kaizen efforts during year 2011. You have been granted a Kaizen Gold Award for practicing kaizen spirit in accordance with our company continuous improvement program.
Gold Kaizen

name Chief Executive Officer

Name Kaizen Program Manager

7 Kaizen Program Cost vs. Savings

KAIZEN

Cash vs. Non-Cash Rewards

Performance Improvement Cost per Incremental Dollar

Cash Incentive Non-Cash Incentive

13% 13.3%

12 4.1

People, Performance and Pay: Dynamic Compensation for Changing Organizations - The Hay Group
13

7 Kaizen Program Cost vs. Savings 2013

Gold Kaizen Silver Kaizen

KAIZEN

Bronze Kaizen

1
2
Cost $2,000 x 5 Cost $5,000 x 1

3
Cost $1,000 x 10

10 Staff Redeem Kaizen Points

Total Cost = $25,000

VS.
14

2013 Target =50 Kaizen Proposals 2013 Total Savings = $1 Mill.

8 Kaizen Panel
KAIZEN

Kaizen Panel Roles & Responsibilities:

Study Kaizen proposals and award kaizen points

Collaborate with units to promote Kaizen culture Work with company management to successfully execute proposed improvement kaizen ideas

Report progress to top management on total improvements made

Establish and deliver Kaizen training to all employees and managers Identify top talents and highlight their Kaizen ideas and accomplishments Approve Awards List given to employees for their improvement efforts Increase total savings from continuous improvement program at our company
15

9 Continuous Improvement at ADPC

KAIZEN

Improvement in all areas of business serves to enhance quality and efficiency at our company. Three things required for successful kaizen program: operating practices, total involvement, and training. Supervisors can direct their attention more on improvement than supervision. Continuous improvement over a long period of time with minimum financial investment, and with participation by everyone in the organization. Middle management can help create conducive environment for improvement by making employees conscious of their responsibilities for improvement. Every employee strives for improvement. Top management views improvement as part of our company strategy.
16

KAIZEN

Thank You