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Kaizen

Management a different approach


Management has two major components: 1. Maintenance 2.Improvement Under the maintenance function, the management must first establish policies, rules, directives and standard operating procedures (SOPs) and then work towards ensuring that everybody follows SOP. Under the improvement function, management works continuously towards revising the current standards, once they have been mastered, and establishing higher ones.

Management - Improvement
Improvement can be broken down between innovation and Kaizen. Innovation involves a drastic improvement in the existing process and requires large investments. Kaizen signifies small improvements as a result of coordinated continuous efforts by all employees. Kaizen (the translation of kai (change) zen (good) is improvement). This method became famous by the book of Masaaki Imai Kaizen: The Key to Japan's Competitive Success.

So what is Kaizen ?
Kaizen refers to philosophy or practices that focus upon continuous improvement of processes in manufacturing, engineering, supporting business processes, and management. By improving standardized activities and processes, kaizen aims to eliminate waste as in lean manufacturing( Toyota Production System ).

Why Use Kaizen?


To solve problems (without already knowing the solution) To eliminate waste (Muda) Transportation, Inventory, Motion, Waiting, Over-production, Over-processing, Defects Create ownership and empowerment Support lean thinking

All we are doing is looking at the time line; from the moment the customer gives us an order, to the point when we collect cash. We are reducing that time line by removing the non-value-added wastes. Taiichi Ohno

Order

Cash

(Reduce by removing non-value-added wastes)

Simple, very clear focus

Kaizen Cycle
Start Here
Do It Again Document Reality Celebrate

Identify Waste Make this the Standard

Kaizen
Plan Countermeasures Measure Results

Reality Check Make Changes 8

Verify Change

Six Basic Rules of Kaizen


Respect others

Particularly the local operators, you are in their living room

Document reality

If you make changes based on data, the data should be based on reality

Do your share

Everyone has to contribute

Try something new

Be open minded - try it instead of racking your brain for

reasons why it wont work (try-storming)

Ask why (the 5 whys)

Gain complete understanding, assume nothing

Be safe / Think safe

Both in your actions and in what you implement

How did it gain importance ?


Kaizen was first implemented in several Japanese businesses after World War II, influenced in part by American business and quality management teachers who visited the country. It has since spread throughout the world and is now being implemented in many other venues besides just business and productivity.

Where is it applicable ?
It has been applied in healthcare ,psychotherapy, life-coaching, government, banking, and many other industries. When used in the business sense and applied to the workplace, kaizen refers to activities that continually improve all functions, and involves all employees from the CEO to the assembly line workers. It also applies to processes, such as purchasing and logistics, that cross organizational boundaries into the supply chain.

Kaizen and Management Levels

Key Features of Kaizen


Improvements are based on many, small changes rather than the radical changes that might arise from R & D . As the ideas come from the workers themselves, they are less likely to be radically different, and therefore easier to implement Small improvements are less likely to require major capital investment than major process changes The ideas come from the talents of the existing workforce, as opposed to using R&D, consultants or equipment any of which could be very expensive All employees should continually be seeking ways to improve their own performance It helps encourage workers to take ownership for their work, and can help reinforce team working, thereby improving worker motivation

Thus
Kaizen is a daily process, the purpose of which goes beyond simple productivity improvement.

It is also a process that, when done correctly, humanizes the workplace, eliminates overly hard work ("muri"), and teaches people how to perform experiments on their work using the scientific method and how to learn to spot and eliminate waste in business processes.

7 Conditions for Successful Implementation of Kaizen Strategy


1.
2. 3. 4. 5.

Top management commitment


Top management commitment Top management commitment Setting up an organization dedicated to promote Kaizen Appointing the best available personnel to manage the Kaizen process Conducting training and education Establishing a step-by-step process for Kaizen introduction.

6. 7.

The Key Kaizen Practices


1.Mindset & Culture
customer orientation
quality control (QC) circles suggestion system discipline in the workplace small-group activities

cooperative labor-management relations


total quality management (TQM) quality improvement

The Key Kaizen Practices


2.Production Process
automation & robotics Autonomation ( jidoka )

zero defects
total productive maintenance (TPM) kanban Just-in-Time (JIT) productivity improvement

new product development

The quick and easy kaizen process


1. The employee identifies a problem, waste, or an opportunity for improvement and writes it down. 2. The employee develops an improvement idea and discusses it with his or her supervisor. 3. The supervisor reviews the idea within 24 hours and encourages immediate action.

4. The employee implements the idea. If a larger improvement idea is approved, the employee should take leadership to implement the idea.

Kaizen at Toyota
There are two kinds of kaizen activities at Toyota: kaizen made by the supervisory staff and engineers as their functions, and that made by workers through the quality circles and suggestion system. The management sets a reference ( target ) cost of each of the parts and a standard time for their production. Then the shop floor that produces these parts and vehicles firstly endeavors to attain these costs and standard time, and then reduces them by carrying on kaizen activities.

A maintenance team contributes to increasing the reliability of equipment mainly by executing preventive maintenance and equipment kaizen.

Kaizen at Toyota
An assembly line is divided into about ten segments per function. It is permitted to have a buffer between two segments, the buffer corresponding to five minutes operations. Thus, when a segment is stopped because of a problem, the others continue to work. So, the production efficiency of the assembly line as a whole does not get lower . A large conveyer installed on the ground level permit workers to operate, standing on it and without walking much with a car body moving, and especially without walking backward. Tasks to carry heavy parts also disappeared by installing automatic or semi-automatic equipment

Summary
Kaizen signifies small improvements as a result of coordinated continuous efforts by all employees. It is also a process that, when done correctly, humanizes the workplace, eliminates overly hard work, and teaches people how to perform experiments on their work using the scientific method and how to learn to spot and eliminate waste in business processes.

The key Kaizen practices are classified as those which are part of the culture and mindset , and those which are part of the production .

CASE STUDY

Improving Productivity And Profitability Through KAIZEN at Gokaldas Exports Ltd.(GEX)

About GEX
Gokaldas Exports Ltd. (GEX) is one of Indias largest apparel exporter. GEXs founding principles of passion, performance, people and products fueled phenomenal growth over 30 years. Through hard work and a dedication to innovation and quality, the Hinduja family built their company into a major supplier of the worlds most preferred apparel brands, including leading casual and sports clothing lines such as Nike and The Gap. It is a one-stop shop for the worlds most preferred apparel brands, including major casual and sports clothing lines.

In 2008, GEX had US $250 million in sales and employed 45,000 people working in 45 factories.

The Challenge
At the dawn of the 21st century, increasing competitiveness in the global garment industry started depressing the companys profits. GEXs leaders determined they would need to improve profits 15 percent to 20 percent without adding resources in order to maintain their leading position and remain competitive in the high-volume, low-margin global garment industry. Nike, a major client, strongly suggested that the company implement lean process improvements. Some members of GEXs leadership team recognized that lean management could be a long-term solution, but long-time family members resisted, a common reaction to new ideas in many Indian businesses that have achieved success using a traditional management philosophy. They believed it was a good idea for automotive and other heavy-industry companies, but not theirs.

Solution
Nike so strongly believed that lean practices would position GEX for the future that the company paid for TBM Consulting to assess GEXs operations in March of 2007.
The assessment revealed the potential for significant improvement, but GEXs leaders still resisted. Finally, when learning of TBMs unconditional satisfaction guarantee, the founding fathers agreed to test the waters.

Pilot Makes an Impression


The first kaizen event took place at a pilot plant in May 2007. That fall, GEX executives attended a CEO boot camp hosted by TBM at which they learned of many successful lean implementations outside of heavy industry. TBM and GEX launched their LeanSigma journey at GEXs Euro Clothing Company (ECC). The implementation went so well, it sparked a raging fire that started spreading throughout the rest of the company. Finally, the companys leaders fully embraced the Lean philosophy.

Improvements At the ECC Plant

Expansion
From January 2008 to March 2009, TBM and GEX expanded the program to four plants, leading to remarkable results The company expanded its Lean approach to 15 plants by March of 2010 (75 percent of capacity) and is expanding kaizen events to business processes as well. Companywide, GEX teams hold an average of 10 kaizen events a week.

Results
Lean has become a key enabler for GEX and its future continued success in driving revenue, quality, and profitability. While the retailclothing sector was devastated by a global recession, GEX made significant strides in on-time delivery, firstpass yield, and productivity even growing sales by two percent in spite of a dreadful economic downturn. Key improvements are helping to significantly improve its competitive position within the industry: lead time, employee absenteeism and attrition.

Results

Results

Overcoming Cultural Challenges


Indias culture can create unique challenges when introducing and applying lean, something that was evident from the beginning of GEXs efforts. The biggest challenge relates to worker absenteeism. When it comes to choosing between family events and going to work, family wins most of the time, especially because the garment-industry workforce is comprised mostly of women. Another challenge is that India is a highly structured and segregated culture in many ways. Socially, there is the well-known caste system, and in the workplace, the tradition of bosses holding power and dictating instructions to workers remains.

Overcoming Cultural Challenges


Key to convincing the elders in the upper-management was patience, perseverance and taking small-but-convincing steps such as starting with one kaizen at one plant. At the employee level, training of mid-managers planted lean thinking at the group-leader level because it was apparent the new practices would have to be accepted among mid-managers before plant-level employees could be properly trained.

Overcoming Cultural Challenges


Additionally, GEX appointed dedicated continuous improvement officers to each site. The company now has 65 such officers at 15 locations. The officers have helped to bridge the gap between the ultra-traditional workplace cultures of India and lean managements emphasis on employee empowerment. For example, eliciting improvement ideas from operators has been difficult because its not in their nature to decide for themselves what to do. The idea of following the bosss order has been instilled in them from childhood. So, the continuous improvement officers tend to introduce improvement ideas for kaizens.

Going Forward
The global recession starting in 2008 caused a drastic drop in apparel demand, but GEX is positioned to weather the downturn. India is the worlds sixth-largest apparel exporter, and the thirdlargest among Asian nations. As the global economy recovers and demand bounces back, a wave of consolidation among small-scale producers is expected. As a large-scale lean producer, GEX is positioned to grow revenues with limited investment in new resources.

GEX Lean Timeline

Kaizen Week at GEX

THANKYOU
PRESENTED BY: AKRITI DIXIT(1) SAKSHI KHURANA(14) SUGANDHA RATHORE(20)

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