KAIZEN

K.VETRISELVAM SIL, HOSUR

What is Kaizen?
Change for the Better Continual Improvement The low-cost / no-cost method for improvements Includes Radical Change (Kaikaku) and Repeated incremental improvement steps

Change

For Better

Kaizen - Change For The Better

Kaizen is about deliberately constructing an environment conducive to having ordinary people creating and rapidly implementing ideas in order to resolve critical business issues in a sustainable way
Stuart Ross, Ross International

Process-oriented: results can only be improved if processes are improved (Muda Elimination)
People-oriented: based on the belief that peoples natural desire for quality and value, and that it will pay for itself in the long run Standard-oriented: standards are required in order for improvement to occur (enhanced by 5S)
Kaizen (Imai, 1986)

KAIZEN : Process oriented

Products and services are delivered to our customers through a series of work processes, not as the result of any one function Value added is always determined from the customers perspectiveWho is the customer?

KAIZEN : Process oriented

Every process should be focusing on adding value to the customer. Anything that does not add value is waste. Some non-value added activity is necessary waste
Value NonValue- Added Added Required Non ValueAdded, Pure waste

Lean Thinking
Business as Usual
CUSTOMER ORDER

Waste
Time

PRODUCT BUILT & SHIPPED

Lean Enterprise
CUSTOMER ORDER PRODUCT BUILT & SHIPPED

Waste
Time (Shorter)

What is Waste? Any thing we make that costs something, without adding value to the product

Kaizen - Elimination of Waste

Identify waste Measurement

Leadership Improvement

Kaizen is the continuous elimination of waste

Types of Waste

Overproduction Delays (waiting time) Transportation Process Inventories Motions Defective products Untapped resources Misused resources

Types of Waste

Typical Causes of Waste

Functional Organization IT gaps Excessive Controls Outdated Process Design No Back-up/Cross Training Obsolete Forms or Form design Unbalanced Workload Changing Management Priorities No Decision Rules Poor visual controls Disorganized Workplace Lack of Training

Exercise 1: Wastes Identification

List at least one example of each of the 9 categories of waste from a process within your organization. Identify at least one possible cause for each of the specific wastes listed. Propose one or more actions to reduce each of these wastes. Identify methods of measurement to determine results of waste reduction efforts.

Two types of Kaizen

Senior Management Flow Kaizen (Value Stream Improvement) Focus Front Lines Point Kaizen (Elimination of Waste)

Time

Value Stream starts with Flow Kaizen Point / Process Kaizen is very detailed implementation at a step in the Process.

Types of Improvement
Amount of Change
Sum of process control, incremental, and breakthrough

from BREAKTHROUGH

Sum of process control and incremental

from INCREMENTAL IMPROVEMENT

from PROCESS CONTROL

Time

Two types of Kaizen

Flow Kaizen Value Stream Improvement Instigating & Improving Flow Responsibility for Senior Management

Point / Process Kaizen Elimination of waste Reducing Process Times Responsibility for Operational staff

Kaizen Focus
Purpose
What is actually done? (Or What is actually achieved? Why is the activity necessary at all? What else might be or should be done?

Eliminate
unnecessary parts of the job

Place

Where is it being done? Why is done at that particular place? Where else might it or should it be done?

Combine
wherever possible and/or

Sequence

When is it done? Why is done at that particular time? When might or should it be done?

Rearrange
operations for more effective results or reduction in waste

People

Who does it? Why is it done by that particular person? Who else might or should do it?

Method

How is it done? Why is it done in that particular way? How else might or should it be done?

Simplify
the operations

Kaizen : Reducing NVA

Value-Add Activity

Non-Value-Add Activity

NVA Reduction is a Non Traditional Approach

Major Impact on Lead Time and QCD

Kaizen Targets
Starts with the Customer
EDI

Customer

Accounts Receivable

How KAIZEN?
Plan Do Check Act
Planning and preparation, based on an analysis of existing practices and performance

Plan

Act
Standardize the new practices and explore opportunities for further improvements

Do
Implementation of the plan

Check
Check whether changes have resulted in expected improvements

How KAIZEN?

Define the Current Status Observe & Analyze

5 Whys
Ask why five times so that the underlying cause can be identified Dont accept excuses for why things cant be done. Importantly blame is not assigned, problems are found and solutions implemented.

How KAIZEN?

Define the Current Status Observe & Analyze Actions Check Standardize What? Who? When?

KAIZEN : Standards oriented

Establish standards
Maintain standards

Improve standards

Management policies

Improvement activities of priority implementation items

Standardization Priority problems

A C A

P D S D

Problems

Minor problems

A C

P D

Standardization

Improvement activities to enhance management level

Current standards

How KAIZEN?

Define the Current Status Observe & Analyze Actions Check Standardize What? Who? When? Conclude

Success Stories
Good ideas should be promoted, through Success Stories Record conditions, before and after the improvement Show who (or which team) made the suggestion and implemented the improvement What gains occurred Have them prominently located Write successes as well as the new standards.
Before After

Process Improvement

Story Boards
A storyboard is a graphical series of panels that displays the history of significant changes or proposals, that together tell a story!

The 7 Quality tools may also be shown, along with others as necessary, as are the savings made and those in the teams involved.

KAIZEN : People oriented

Empowerment Utilize everyones brain power Commitment to communicate fully Creativity Motivation Proactive

KAIZEN : People oriented

Be Open to Change - Stay Positive Speak Out if You Disagree See Waste as Opportunity - No Blame Treat Others as You Want to be Treated
One Person - One Vote

Ask the Silly Questions, Challenge Givens Creativity Before Capital Understand the Principles then JUST DO IT

KAIZEN CULTURE
Being Quick, but Imperfect, is Better than Being perfect , but late.

Experiment
Learn

KAIZEN BENEFITS
Quality Cost Delivery Safety Morale Improved Simultaneously

Final thoughts
Its what you think you dont have time to do now that takes you where you need to be when its too late to do anything about it!
Robert Gary

If you pit a good worker against a bad system, the bad system will eventually win.
Rummler-Brache

Discussions

vetriselvam.k@dana.com