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Management
Guide
• January 1999 •
Serving Iowa Industry since 1963 • 500 ISU Research Park, 2501 N. Loop Drive, Ames,
Iowa 50010-8286
BACKGROUND
Kaizen means continuous improvement. To be most effective, Kaizen should involve all company
employees. Continuous improvement can be implemented as a program, but it yields its greatest
rewards to companies that adopt it as philosophy. In his 1986 book Kaizen, the Key to Japan’s
Competitive Success, Masaaki Imai1 said:
"If asked to name the most important difference between Japanese and Western management concepts,
I would unhesitatingly say, ‘Japanese Kaizen and its process-oriented way of thinking versus the
West’s innovation and results-oriented thinking’." (See Exhibit 1.)
In 1993, several Frigidaire Company employees were selected to lead the introduction of Kaizen
throughout the company. As one of those selected, I participated in training provided by Kaizen
Institute of America2. Its process for teaching Kaizen comprised two days of classroom training and
three days of team application in the team’s own work area. Teams of eight employees were selected,
typically including four employees from the process to be improved, one from the previous process,
one from the next process, and two support employees (e.g., engineering, purchasing, accounting,
maintenance, quality, or supervision).
Four to five of these teams were dedicated to Kaizen for the entire week, and they were provided
extensive support. If the team identified the need to rearrange the workspace, and this involved
electrical, air, water, or gas drops, work orders were prepared and the work completed by the night
shift maintenance employees. As a result of the intense focus of resources, teams not only identified
numerous improvement ideas, but also implemented many of them during that same week. Significant
reductions in non-value adding work, floor space requirements, cycle time, and work-in-process (WIP)
inventory were accomplished. Process documentation was developed and product quality improved.
Some ideas failed and had to be rethought before a workable approach was identified.
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For large companies and plants, this process is very effective. Kaizen Institute of America has
consultants with extensive experience to lead the process, and I would recommend them.
LESSONS LEARNED
CIRAS serves the 4,500+ manufacturing plants in Iowa. Most of these plants are small to medium
sized, employing fewer than 500 employees. Often smaller plants like these cannot dedicate even one
team of eight employees for a full week of Kaizen, even though Kaizen principles are as effective in
small companies as they are in large ones. To make Kaizen work for our client companies, I had to
continuously improve my own process. After discussions with several companies, I condensed the
process to two days of team meeting time (sometimes separated by several weeks of implementation
time). The case studies summarized below demonstrate this abbreviated process. Kaizen works equally
well in office (administrative procedures) and shop (production processes) settings. Continuous
improvement is totally compatible with participative management, total quality management (TQM),
teams, empowerment, and other management philosophies that involve all employees in making
improvements. Management teams with these philosophies recognize that if employees are given clear
expectations and time to work as teams, they will be productive with the time and tools available to
them. Conversely, Kaizen would not do well in an autocratic management environment.
KAIZEN PROCESS
Now the process, as adapted for small- to medium-sized companies, comprises as little as four half-day
sessions. Some companies choose to devote three to five days to the Kaizen workshop. Details follow
on each of the tools listed here for the four-session workshop.
l Session 1
Illustrate and discuss Kaizen vs. Innovation (Exhibit 1), Super-Ordinate Principles
(Exhibit 2), Seven Key Concepts (Exhibit 3), and Problem Solving Tools (Exhibit 4); then
go to the work area to apply Key Concepts and write down improvement ideas.
l Session 2
Brainstorm ideas from the Key Concepts, vote on priority of ideas under each concept,
develop an action plan for the Key Concept ideas, discuss the 5-S process (Exhibit 5), and
develop a flow chart for the process.
l Session 3
Review progress on the first action plan, illustrate and discuss the Seven Deadly Wastes
(Exhibit 6), go to the work area to apply the Seven Deadly Wastes and write down
improvement ideas; then brainstorm ideas from the Seven Deadly Wastes.
l Session 4
Vote on the priority of ideas under each waste, develop an action plan for the Seven
Deadly Waste ideas, illustrate and discuss Standardized Work (Exhibit7); then review and
improve the flow chart, document improvements, present the project to management, and
recognize team accomplishments.
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The team meets weekly to review its implementation progress, identify/overcome barriers,
celebrate successes, and document its processes. The team applies the 5-S process in its
work area and review the flow chart, looking for ways to eliminate non-value adding
tasks.
An alternate approach is based on a one-week Kaizen event, often called a "blitz." The implication
‘fast." This approach works especially well in larger companies. Often small companies lack the
resources to utilize this approach. For example, to be able to rearrange equipment overnight, some
dedicated resources (like maintenance and material handling) are needed.
Faced with rapid growth, Audubon Media Corporation, a printer of cookbooks ranging from small
family cookbook orders up to nationally marketed cookbooks, recognized the need for improvements
in processes and documentation. Keith McGlade, president and owner, wanted to see more team-
oriented practices implemented to involve all employees in making needed improvements. Keith asked
me to evaluate the situation and recommend a plan to improve throughput of their plant. Over a two-
year period, I facilitated five Kaizen teams for Audubon Media.
The first project was representative of the Kaizen process. Working in their bindery and press
departments, the team generated over 70 improvement ideas with an action plan for follow-up. Most of
the team’s ideas were implemented within three months. Major outcomes for this shop/production
team included (see reference 3):
Corporate Image manufactures presentation packaging products such as notebooks and video cases
used by companies to market their products and services. Fritz James, president, wanted to empower
his employees, reduce process variation (quality costs) through improved process documentation,
reduce order lead time and improve communication, both internal and external. He asked me to assess
alternatives for launching Kaizen teams. After reviewing process steps with the management team, we
agreed on a plan. Over the next twelve months, I facilitated four Kaizen workshops and two cross-team
meetings for Corporate Image.
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The first project addressed the process from first customer call through pre-press. The team established
an action plan for implementing their improvement ideas numbering well over 1000. After follow-up
meetings to consolidate their first priority, a procedures manual, the team spent less than four weeks
developing procedures for all of their processes. Major outcomes for this administrative project
included:
"Jim and I agreed…to start several Kaizen teams that would start the process of improving the
procedures used, increase understanding between departments, and set up a method of empowering
individuals and teams to make continuous improvements. The results were very positive and
contributed to the most successful year for Corporate Image."
RECOMMENDATION
Kaizen teams typically improve all three of the major drivers (quality, cost, and delivery) by
eliminating non-value adding tasks and improving process documentation. The resulting
documentation (set-up sheets, process procedures, and quality standards) makes training more
effective; and, by causing more consistent task execution, it also improves quality. The documentation
is helpful for companies pursuing ISO certification and also forms the standard from which to launch
further improvement efforts. As quality improves, both cost and delivery improve. Floor space
requirements and total process times are usually reduced by at least 20 percent. Cost of implementing
Kaizen are recovered quickly with payback ratios ranging from 3:1 to 9:1. With strong management
support, paybacks of 15:1 to 30:1 are not uncommon. In conclusion, I highly recommend Kaizen as a
low-cost, team-oriented approach that leverages company resources.
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Look for optimum vs. sub-optimum – a dime saved in one department has
no merit if it adds a dollar of cost in another department.
Determine what is wrong, not who is wrong. Find the cause of the problem
and correct it, but do not kill the messenger.
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the real cause of a problem and to avoid just treating the effect of the problem.
l P – Plan
l D – Do
Implement solution
l C – Check
l A – Act
1. Seiri SORT what is not needed. Use the red tag system of tagging items
considered not needed, then give everyone a chance to indicate if the
items really are needed. Any red tagged item for which no one
identifies a need is eliminated (sell to employee, sell to scrap dealer,
give away, put into trash.
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l Seiton STRAIGHTEN what must be kept. Make things visible. Put tools on
peg board and outline the tool so its location can be readily identified.
Apply the saying "a place for everything, and everything a place.
l Seiso SCRUB everything that remains. Clean and paint to provide a pleasing
appearance.
l Seiketsu SPREAD the clean/check routine. When others see the improvements
in the Kaizen area, give them the training and the time to improve their
work area.
The standard is the best, easiest, and safest process to complete the job. Components of
standardized work include
TAKT time The drumbeat of the process. Divide available work minutes by
quantity required to determine minutes per piece (this is the TAKT
time). Eliminate waste, then balance work to TAKT time.
Standard WIP Smallest amount of WIP required to do the job. Get parts in smaller
containers so they take less space. If WIP is kept to buffer downtime
from the producing area, take steps to reduce the maximum
downtime for that process – this reduces the buffer required.
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References
1Masaaki Imai, Kaizen, the Key to Japan’s Competitive Success (New York: McGraw-Hill Publishing
Company, 1986).
2The exhibits in this paper are patterned after materials taught by Kaizen Institute of America, 108 El
Reno Cove, Suite 100, Austin, Texas 78734.
3 Jim Black, "Audubon Media Corporation Applies the Cycle of Continuous Improvement and
Strategic Planning," CIRAS News (Spring 1997):pp. 1+.
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