Kaizen

A Lean Manufacturing Tool

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CONTENTS
INTRODUCTION............................................................... pg 1

DEFINING THE KAIZEN APPROACH................................. pg 2

How is Kaizen Different?

Western Philosophies
Kaizen Philosophies

What are the Benefits of Kaizen?

THE PLAN-DO-CHECK-ACT (PDCA) CYCLE.................... pg 4

Plan

pg 2 Defining the Kaizen Approach

Do
Check
Act

COLLECTING SUGGESTIONS........................................... pg 6

Meetings
Kaizen Cards
Quality Circles

THE ONGOING PROCESS................................................. pg 8

Responding to Suggestions
Communicating Change Over Time

pg 6 Collecting Suggestions and Issue Resolution

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INTRODUCTION
Facility managers always want to improve production and decrease costs. For more than 30 years, Kaizen has been a
popular and successful management philosophy that works to achieve these goals.

The word Kaizen literally means “improvement”—“kai”
meaning “change” and “zen” meaning “good” in
Japanese. As a business philosophy, Kaizen means an
approach that motivates people to continually improve
their surroundings. Under Kaizen, workers search for
imperfections and make small changes to correct them
as part of their ordinary work routine. These small steps,
building on each other over time, lead to significant
ongoing improvement.
“It's not enough to do your best;
you must know what to do, and
then do your best”
— W. Edwards Deming
Toyota, one of the largest auto manufacturers in the world,
is a well-known pioneer in Kaizen. The company is credited
as the first to formalize the philosophy and implement
it as part of a global business plan. Over a single year,
one of Toyota’s plants in the United States recorded
over 75,000 suggestions from 7,000 employees, and
reported implementing over 99% of those suggestions.
Every implemented step had a positive effect on safety,
efficiency, productivity, or reliability. While each step may
have been small on its own, the total result was a drastic
and long-lasting improvement in the company. The drive
of Kaizen is many small steps, all in the right direction,
continuing indefinitely.

The roots of Kaizen reach back to the late 1940s, when In just one year, a
Japan’s economy was still reeling from the second World Toyota plant in the U.S.
War. The United States provided aid to support the implemented almost
reconstruction efforts. Part of the aid was the service of 75,000 employee
several prominent business consultants, most famously, suggestions.
W. Edwards Deming. These consultants introduced
new efficiency methods, including statistical analysis of
business processes.

Working with Deming and other consultants, Japanese

industries created several new management approaches, 7,OOO
one of which was Kaizen. Using these approaches they EMPLOYEES
were soon able to out-produce their counterparts
in other industrial nations, and earn a
reputation for quality and economy.
Today, Japan is a world leader in auto
and electronics manufacturing, and
the Japanese Union of Scientists
and Engineers (JUSE) awards
an annual Deming Prize for
major advances in quality
improvement.
75,OOO
SUGGESTIONS

99%
IMPLEMENTATION

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DEFINING THE KAIZEN APPROACH
To understand the Kaizen system, you need to see how its underlying philosophy is different from traditional Western
business philosophies.
How is Kaizen Different?
Traditional Western business practices have been used
in industry for centuries. Kaizen challenges some of
these practices, and offers a different philosophy for
business organization.
Western Philosophies
At the core of traditional Western business philosophy
is the idea of “division of labor,” keeping different jobs
separate. Managers have their own offices, designers
might work in a separate building, and production line
workers stay on the production floor. Each employee has
a role and is expected to perform that one function only.
Managers are the leaders of the business; they develop
ideas, propose them, and implement them. The role of
management is to “command and control.” In practice,
many managers spend most of their work days in an
office and are not expected to make regular visits
to work areas. This can serve as a buffer, giving the
managers room to work effectively, but another result
is a disconnect between the managers and the work
that they manage. Communication breaks down and
effectiveness is lost.
Some common elements of Western business
philosophies are:
• Managers assess reports and issue decisions
• Employees are expected to follow procedures
• Innovation comes from the designated “innovators”
• Final quality comes from strong initial design
• Reliability comes from fail-proof machines
• Large inventories are kept to prevent shortages
• Specialization is important because “redundancy”
means “someone’s losing a job”
• Changes to the system are declared by the powers
that be in response to something going wrong
Kaizen Philosophies
In contrast to Western approaches, Kaizen shapes new
roles for the employees in a workforce. While labor is
still divided by fields of expertise, outside input is always
appreciated. Worthwhile suggestions can come from
877.534.5157 | GraphicProducts.com  
Under Kaizen, workers become the leaders of the business; they
develop ideas, propose them, and implement them.
anywhere and often spring from “cross-pollination”—
people working in one process gain useful insights from
observing or participating in another process.
The workers become the leaders of the business; they
develop ideas, propose them, and implement them.
The role of management is to organize and facilitate.
Managers review suggestions, assess their importance,
and make sure that appropriate action is taken. Managers
work to keep open lines of communication across all
departments, because without that communication, the
business as a whole cannot move forward.
Under Kaizen, some of the common elements of business
philosophy change drastically:
• Managers see how things are done, organize, and
implement changes
• Employees are expected to offer improvements to
procedures
• Innovation can come from anyone with an idea
• Final quality comes from attention at every step of
production
• Reliability comes from good maintenance processes
• Small inventories are kept to reduce waste; production
problems should be caught and resolved before a
shortage arises
• Specialization is useful, but understanding “before”
and “after” gives extra insight (making each employee
that much more valuable)
• Changes to the system are made constantly, in small
steps, at every level of the company, to achieve ongoing
improvement
 2
DEFINING THE KAIZEN APPROACH

What are the Benefits of Kaizen?
Where Kaizen is properly applied, facilities experience
many benefits. Managers become more effective
leaders and workers are motivated. The end result is an
environment that fosters teamwork, with all employees
working together to achieve common goals. The
organization succeeds and the people in the organization
thrive.
Kaizen creates a constant flow of facility-improving ideas.
Many of these ideas would never be shared, and would
never be implemented, without Kaizen. Each new idea is a
small step in the right direction and part of the continuing
process of improvement. Over time, these numerous small
steps add up to provide substantial benefits to your facility.
When managers support the Kaizen approach, workers
see that their input is considered and valued. The workers
then continue to provide more and better input, and the
business improves. Workers take more pride in their work
when they have a say in how it is done. Managers gain
more respect by paying attention to what actually happens
and ensuring that the workers’ feedback is acted on.
As for the bottom line, steadily improving on efficiency
and quality will make your organization more successful.
Breaking that progress into small chunks will help to ease
the process, minimizing the delay of retraining and the
investment of facility overhauls. Kaizen assumes that
your “show must go on,” even while the improvements are
taking place. This keeps your productivity up today, while
preparing for better productivity tomorrow.

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THE PLAN-DO-CHECK-ACT (PDCA) CYCLE
The heartbeat of Kaizen is a four-step cycle, sometimes called the Deming Cycle or the Shewhart Cycle (after two of the
analysts who helped create it.) It’s also called the PDCA Cycle, because the four steps are Plan, Do, Check, and Act.

This cycle is based on the scientific method of inquiry.

Scientists start with observations and create a hypothesis,
then test the hypothesis with experiments, and analyze
the results of the experiment. Those results are then
used to improve the hypothesis and continue testing. This
approach reinforces critical thinking as part of ongoing
improvement efforts. Toyota, known for their success
in Kaizen, actually teaches this approach to all new
employees at the very beginning of their job training and
refers to this process as “building people before building
cars.”

Plan
This first step of the cycle involves defining the problem
and spelling out a possible solution. Specific details are
understand how a plan will work in the real world without
important. Exactly what is happening now? What is the
seeing it in practice. Trying out new approaches will
goal of this improvement, and how can it be implemented?
provide the experience and information needed to make
better choices in the future. A habit of trying new things
When suggestions are made, management should
also encourages workers to adapt to new plans easily, and
take them seriously. Some of the suggested steps may
to make their own suggestions more frequently.
depend on other factors, or may require a large up-front
investment before any testing can be carried out. For these
When possible, the person who made a suggestion should
suggestions, more information may be needed as part
take a leading role in establishing the change. While many
of the planning step. This may involve observation and
implementations will require management participation,
analysis, or even research with outside resources.
empowering a worker to make their own changes can bring
even quicker acceptance of the new approach. Employees
Don’t let suggestions become “lost” in this planning step.
will also take greater pride in a system they helped to
Once the suggestion has been clarified to the point where
shape.
it can be acted on, it’s time to move to the next step.
No single solution will solve everything—that’s not the
approach that Kaizen uses. As the Chinese philosopher Check
Laozi said, “A journey of a thousand miles begins with a
single step.” This step is also called “Study” because it’s not just a
quick confirmation that the plan worked; valuable insight
can be gained from a close look at what happened. There
Do are several questions to ask:
Now that a suggestion has been turned into a formal
• Did the actual implementation match the plan? If not,
plan, put that plan into action. For many suggestions this
why not?
will mean implementing the idea immediately, across the
facility. Other ideas may be smaller in scope, only affecting • Did the planned result actually follow the
a small part of the facility, or only requiring communication implementation? To what degree?
to achieve their goals. • Were there any unexpected problems? What about
unexpected benefits?
Some of the plans may offer a potential complication or • Are there any inconsistencies, with different results
chance of failure. Instead of stalling, try these suggestions in separate areas? If so, what might be causing those
on a small scale as a “pilot program.” It can be difficult to different results?

877.534.5157 | GraphicProducts.com    4
THE PLAN-DO-CHECK-ACT (PDCA) CYCLE

In order to properly check the results of a change,
you need a system of observation and recording. One
useful tool is a Control Chart, which shows variation in a
system over time, with an emphasis on consistency and
identifying change. The information gained from a trial and
observation should be communicated across the facility.
Use signs and charts to track progress and results.
If the benefits of the plan outweigh the costs, the
suggestion should be adopted facility-wide. This is where
standardization comes in. Write down what was done, why,
and what happened as a result. Then, write down what
the new process is, including the new steps. Spread this
information within your company so that everyone involved
understands the new process—so everyone can see the
benefits of the Kaizen approach.

Act It’s important that your entire facility is open to change. If

This step is sometimes called “Adjust” to emphasize that you can’t change, you can’t improve. If you can’t improve,
the plan has already been acted on, in the Do step. Based you lose.
on the results that were observed and analyzed during the
Check step, the plan may need to be changed. If so, send
it back to the Plan step.

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COLLECTING SUGGESTIONS
In order to succeed with Kaizen, you need suggestions from workers. There are three common ways to get these
suggestions: Meetings, Kaizen cards, and Quality Circles.

The PDCA Cycle is driven by suggestions, and the

suggestions come from everyone who has a stake in
the success of the company. All employees, from the
entry-level production line worker all the way up to the
CEO, have a stake in the company! How can you get
real, useful suggestions at every level? The best way
is to start by opening communication. Create a safe
situation in which anyone can speak up, and ensure
that they are heard.

Meetings
The most basic way to get Kaizen rolling is with a
meeting. Gather teams together and describe your goal
of continual improvement through Kaizen. Make sure
that everyone understands several important elements,
right at the beginning:

1. Kaizen will lead to a better company.

2. The process relies on everyone’s input.
3. Each suggestion will be seriously considered.
4. There are no negative repercussions to making a
suggestion. (Your facility may even offer rewards.) A basic suggestion form is an easy way to empower
employees to share their ideas.
5. This is not a once-and-done approach; Kaizen is here
to stay.
Each Kaizen card should include a set of details:
Leave plenty of time to answer questions about the
process, and to start taking suggestions. Meetings are • Date of the suggestion
not the time to discuss how to implement ideas, they’re
• Name of the suggesting employee (optional, to
a time to gather as many ideas as possible.
provide anonymity if desired)
Your first meeting will provide fuel to start the PDCA • Part of the facility to be affected and the manager
cycle; afterward, more meetings should be conducted. who would need to approve the change
Introduce new employees to the Kaizen system, • Problem being addressed
recognize the contributions from previous suggestions, • Suggested solution or course of research
and gather new suggestions again.
Additionally, your facility may want to track suggestions
Kaizen Cards more closely. Try including:

An easy way to continue the flow of ideas is with Kaizen
cards. These are simply note cards or slips of paper
with a basic form; for some facilities, these can even be
made electronic.
• Type of suggestion being made (safety, production,
waste reduction, morale, etc.)
• Urgency of the change
• Expected resources to implement the idea
• Team to be credited for the suggestion

877.534.5157 | GraphicProducts.com    6
COLLECTING SUGGESTIONS

These cards should be readily available in common spaces

of your workplace, such as break rooms. If possible, make
the cards available elsewhere, such as workstations
where employees are actively engaged in their jobs. This
way, workers can write down ideas as they come up. The
completed Kaizen cards can then be dropped off in a
designated box, to be collected and distributed to the
appropriate managers.

As suggestions collect, don’t become discouraged.

Suggestions do not indicate problems, they indicate
improvements! It may be helpful to create friendly
competition by keeping track of the contributions from
different teams in your facility.

Quality Circles
These teams, usually three to twelve individuals, are
composed of volunteers. Quality Circles meet periodically
(at least once a month, but usually once a week) to
discuss quality issues. Typical Quality Circles will include
members from a given department or work area, along
with a supervisor, and occasionally an “outsider” to
provide a fresh view.
The meetings of a Quality Circle act as a smaller, more
focused Kaizen meeting. Since the workers in a given area
are represented there, along with a supervisor who has
the authority to approve certain changes in the workplace,
minor changes that are suggested here can often be put
into practice the same day.
Common work area issues can be addressed during regular
Quality Circle meetings.
Dedicating some of the Quality Circle’s time to Kaizen
allows them to handle much of the data collection and
analysis that is required in the Check stage of PDCA.
The people close to a problem can discuss it in greater
detail, and will have a better understanding of exactly
what has changed when an idea is implemented. As the
Quality Circle develops over time, they can use valuable
analysis tools like histograms, cause-and-effect analysis,
and control charts. These tools improve the results of
your Kaizen efforts, and they also train the employees in
a Quality Circle to think analytically and carefully, which
makes them more valuable assets to your company.

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THE ONGOING PROCESS
Kaizen improves in value over time. To keep the process moving, you need to maintain communication. Respond to all
suggestions, and let your employees know what is happening.

Responding to Suggestions Communicating Change Over Time

It is never appropriate to discard a suggestion outright. If
you refuse to consider a suggestion, why bother asking
for one? If it turns out that a suggestion will not work in
your facility, make sure that the person who provided it
understands the reasons. They may have an alternative
solution to provide, and they will know that they were
taken seriously. If the suggestion could not possibly work,
then the person who suggested it may not understand
the company’s structure, or they may have discovered a
weakness in that structure. These are opportunities to
improve.
Remember that managers in a Kaizen system do not
dictate change. Instead, they organize and facilitate
change. All of the suggestions that are submitted must
go through a supervisor or manager to be recorded and
approved before they are implemented. This should not
mean that the manager hoards suggestions, and then
doles out approvals as an exercise of power. Managers
and supervisors should be resources and advocates for
their teams.
Part of the effectiveness of every team is the flow of their
suggestions into the PDCA Cycle. Another part is the flow
of improvements that result from those suggestions.
Managers should take the lead in improving their
teams’ effectiveness. Encourage and reward valuable
contributions, because those contributions make the
entire organization more successful.
A big part of the Kaizen process is implementing
change—over, and over, and over again. Things are always
changing in a Kaizen-oriented facility. How can everyone
stay up to date?
It is critical to use visual communication to inform
employees. When a procedure changes, let the affected
workers know, and create a label at the point of need to
remind them of the new process. Change the label when
the process changes again. Post signs and charts that
show the rate of suggestions and the benefits of those
changes. Track contributions and announce the next
steps.
The Kaizen business philosophy has helped many
facilities achieve great success, in Japan and around
the world. Success, however, takes time. Managers and
workers must be willing to accept change, and must
support the Kaizen approach in all their work. Many
roles and responsibilities may change when Kaizen is
implemented; managers will turn to workers for ideas, and
workers will have greater responsibility for the success of
their facility.

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