KAIZEN

The Key to Japans

Competitive Success
By MASAAKI IMAI

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TABLE OF CONTENTS
1. KAIZEN, The Concept
2. Improvement East and West
3. KAIZEN by Total Quality Control

4. KAIZEN, The Practice

5. KAIZEN Management

6. The KAIZEN Approach to Problem Solving

7. Changing the Corporate Culture

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CHAPTER I

KAIZEN
The Concept
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KAIZEN Values

Kaizen &
Management

Implications of QC
for KAIZEN

KAIZEN & TQC

KAIZEN & The

Suggestion
System

Kaizen &
Competition

Process Oriented Management

VS
Result Oriented Management

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t
en
em
n prov
ba
s
am ty im e
itie
K uali n Tim ts
tiv
c
Q ust i defe p ac bor ns
t
u
J ero l-gro ve la latio emen nt
Z mal erati nt re prov pme
S oop eme ty im evelo
g
C na tivi ct d
ma uc du
ion
rod pro
tat
P ewen
ori
N
er
tom
us
C QC tics
t em
T obo rcles n sys
i
R C c estio n
e
Q ugg atio in th
S utom line
A iscip lace
D rk p
wo
PM
T

a
K

e
iZ

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JOBS FUNCTION PERCEPTIONS

Japanese perceptions
on
i
t
a
ov
n
In
EN
Z
I
KA

Western perceptions

Top management

i
Ma

e
nc
a
n
nte

Middle management
Supervisors

on
i
t
a
ov
n
In
i
Ma

e
nc
a
n
nte

Workers

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Top
Management
Determine to
introduce Kaizen as
a corporate strategy
Provide support and
direction for Kaizen
by allocating
resources
Establish policy for
Kaizen and cross
functional goals
Realize Kaizen goals
through policy
deployment and
audits
Build system,
procedures, and
structures conducive
to Kaizen

Middle
Management
and Staff
Deploy and
implement Kaizen
goals as directed by
top management
through policy
deployment and
cross functional
management
Use Kaizen in
functional capabilities
Establish, maintain,
and upgrade standard
Make employees
Kaizen-concious
through intensive
training programs
Help employees
develop skills and
tools for problem
solving

Supervisors

Use Kaizen in
functional rules
Formulate plans for
Kaizen and provide
guidance for workers
Improve
communication with
workers and sustain
high morale
Support small group
activities (such as
quality circles) and
the individual
suggestion system
Introduce discipline in
the workshop
Provide Kaizen
suggestions

Workers

Engage in Kaizen
through the
suggestion system
and small group
activities
Practice discipline in
the workshop

Engage in
continuous selfdevelopment to
become better
problem solvers

Enhance skills and

job performance
expertise with cross
education

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Deming Wheel
Design

Research

Production
Plan

Sales

Act

PDCA

Check

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Do

Three Award in Sumo Tournament ;

- An outstanding performance award
- A skill award
- A fighting spirit award

Focus more on
process

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CHAPTER II

Improvement
East & West
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Continuous Improvement

KAIZEN

JAPAN

WESTERN
INNOVA
TION

Breakthrough

Science

Technology

Innovation

Design

Production

KAIZEN

Market

KAIZEN

INNOVATION

Long term
Un-dramatic

Effect

Short term
Dramatic

Small steps

Pace

Big steps

Continuous & incremental

Time
frame

Intermittent &
non incremental

Gradual & consistent

Change

Abrupt & volatile

Everybody

Involvement

Champion

Collectivism,
group efforts, systems
approach

Approach

Rugged individualism,
individual ideas & efforts
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KAIZEN

INNOVATION

Maintenance &
Improvement

Mode

Scrap
& Rebuild

Conventional know-how &

state of the art

Spark

Technological breakthroughs,
new inventions, new theories

Little investment
Great effort to maintain

Practical
Requirements

Large investment
Little effort to maintain

People

Effort
orientation

Technology

Process & efforts for

better results

Evaluation
criteria

Results for profits

Slow growth economy

Economic
condition

Fast growth economy

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Standard
Maintenance

Innovation

Actual
Standard
Maintenance
Innovation

Actual

Time

T
T
A
P

N
R
E

Actual

Innovation + Kaizen
Innovation

Actual

KAIZEN

Standard

KAIZEN

Standard
Time
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INNOVATION

KAIZEN

Creativity

Adaptability

Individualism

Teamwork (system approach)

Specialist oriented

Generalist-oriented

Attention to great leaps

Attention to details

Technology oriented

People oriented

Information: closed, proprietary

Information: open, shared

Functional (specialist) orientation

Cross functional orientation

Seek new technology

Build on existing technology

Line + staff

Cross functional organization

Limited feedback

Comprehensive feedback
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Upcoming Japanese product perceptions

Technology Level

High
Technology

Preferred Process

Product

Technology oriented
innovation

Innovative product
with Kaizen orientation

Technology oriented
KAIZEN

Low Technology

People oriented
KAIZEN

Kaizen oriented
product

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CHAPTER III

KAIZEN by
TOTAL QUALITY CONTROL (TQC)

Quality control deals with the Quality of people

Speaks with data

Quality first, not Profit first

Manage the previous process ( Upstream)

The next process is the customer

Customer oriented TQC, not manufacturer oriented TQC

TQC starts with training and ends with training

Cross Functional Management to Facilitate Kaizen

Follow PDCA cycles

10

Standardize the results

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1. Quality assurance
2. Cost reduction

TQC

3. Meeting production quota

4. Meeting delivery schedule
5. Safety
6. New-product development
7. Productivity improvement
8. Supplier management

TQC

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Manpower
Technique
Method
Time

Muda (Waste)
Muri (Strain)
Mura
(Discrepancy)

Facilities
Jigs and tools
Materials
Production volume
Inventory
Place
Way of thinking

ACT
PLAN
CHECK
Definitions
of
problem
Standardi-zation
Confirmation
Analysis of
ofof
problem
results
Identification
causes
Implemen-tation
Planning counter-measures

DO
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Man ( operator)

Machine (facilities)

Material

Operation Method

Does he follow standard?

Does it meet production

requirements?

Are there any mistakes in

volume?

Are the work standards

adequate?

Is his work efficiency

acceptable?

Does it meet process capabilities?

Are there any mistakes in

Is the work standard upgraded?
grade?

Is he problem conscious?

Is the oiling (greasing) adequate?

Are there any mistakes in

the brand name?

Is it a safe method?

Is he
responsible/accountable?

Is the inspecction adequate?

Are there impurities mixed

in?

Is it a method that ensures a

good product?

Is he qualified?

is operation stopped often because

of mechanical trouble?

Is the inventory level

adequate?

Is it an efficient method?

Is he experienced?

Does it meet precision

requirements?

Is there any waste in

material?

is the sequence of work

adequate?

Is he assigned to the right

job?

M
4
t
s
i
l
k
c
e
h
c

Does it make any unusual noises? Is the handling adequate?

Is the setup adequate?

Is he willing to improve?

Is the layout adequate?

Is the work in process

abandoned?

Are the temperature and

humidity adequate?

Does he maintain good

human relations?

Are there enough

machines/facilities?

Is the layout adequate?

Are the lighting and ventilation

adequate?

Is he healthy?

Is everything in good working order?

Is the quality standard

adequate?

Is there adequate contact with

the previous and next
processes?
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CHAPTER IV

KAIZEN
the PRACTICE

MANUFACTURING
OBJECTIVES
Achieve
maximum
quality with
maximum
efficiency

Maintain
minimum
inventory

Eliminate hard
work

Use tools &

facilitates to
maximize
quality &
efficiency &
minimize effort

Maintain a
questioning &
open-minded
attitude for
constant
improvement
based on
teamwork &
cooperation

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Management Oriented
KAIZEN

Group Oriented KAIZEN

Individual Oriented
KAIZEN

Tools

Seven Statistical Tools

New Seven Tools
Professional skills

Seven Statistical Tools

New Seven Tools

Common sense
Seven Statistical Tools

Involves

Managers & Professional

QC- circles group members

Everybody

Target

Focus on system &

Procedures

Within the same workshop

Within ones own work

area

Cycle (Period)

Lasts for the duration of

project

Requires 4-5 months to

complete

Anytime

Achievements

As many as management
chooses

2-3 per years

Many

Supporting
system

Line & Staff project team

Small-group activities
QC circles
Suggestion system

Suggestion system

Implementation
cost

Sometimes require small

investment to implement the
decision

Mostly inexpensive

Inexpensive

Result

New system and facility

improvement

Improved work procedures

Revision of standard

On-the-spot
improvement

Booster

Improvement in Managerial
performance

Morale improvement
Participation
Learning experience

Morale improvement
KAIZEN awareness
Self-development

Direction

Gradual & visible improvement

Marked upgrading of current
status

Gradual & visible

improvement

Gradual & visible

improvement
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Seiton

Seiri

Seiso

5s
Shitsuke

Seiketsu

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NINE
WASTES !!

Waste of
REJECTS

Waste in
DESIGN

Waste in
WIP

quality

cost

delivery

product

Waste in
FIRST PHASE OF PRODUCTION

Method / system
resources

manpower

Waste in
MOTION

Waste in
MANAGEMENT

Waste in
MANPOWER

facilities

money

Waste in
FACILITIES

Waste in
EXPENSES

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Shortened lead time

Reduced time spent on non-process
work

J
I
T

Reduced inventory

Better balance between different

processes
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Problem clarification

Marketing

Top
managemen
t
responsibilit
y:
Strategy &
Planning

Production
&
Purchasing

Product
planning

QCS
Production
preparation

Administrati
on
responsibilit
y:
Provide
support

Design

// YIS//062709//

Time

Involvement

100%

50%

0%
Idea
Design
Development Development

Model
Development

PRODUCT DEVELOPMENT
PHASE
AT IDEAL COMPANY

Trial runs
&
customer
appraisal

Final product
design
Tools &
machinery
Process control

Production

CHAPTER V

KAIZEN
MANAGEMENT

Management & Labor ;

Enemies or Allies?

Cooperation
Working together to bake bigger pie

Confrontation
fighting over how to divide the pie

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Manager's first job is to learn to communicate with his

employees so both workers and the company can achieve their
common goal

Union leader who cannot understand

financial statement and analyze the
company's performance will not be able to
negotiate with management on such laborrelated subjects as technological innovation,
personnel transfers, and scrapping facilities

MANAGEMENT
& LABOR
RELATION
Confronta
tion

Collective
bargaining
Formal &
Organizati
on
oriented

Labormanagement
consultation

Alleviation of
frustrations

Small-group
activities

Cooperati
on

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Informal
&
Individua
l
oriented

Income potential
Job allocation
if labor is flexible

Calls for
management
initiatives

Job potential
if management is
flexible

Job potential
If management
is not flexible

Calls for labor

initiatives

LABOR
RESPONSE

Job allocation
If labor is not
flexible
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General statement of direction

for change (qualitative )
Definition of top
management statement
(quantitative)
Specific goals
(quantitative)
Specific actions
(quantitative)

Top management

POLICY
DEPLOYMENT

Division Management

Middle Management
Supervisors

Goals

Governing Body

Long range policy

Board of directors meeting

Annual top management

policy

Top management

Cross-functional policy

Top management cross

functional committee

Departmental (functional)
policy

Line management

CHAPTER VI

The KAIZEN APPROACH

to PROBLEM SOLVING

When there is no
problem , there is no
potential for
improvements

KAIZEN starts with a problem,

more precisely the

recognition that a
problem exists

// YIS//062709//

Seven Statistical
tools

New Seven tools

Pareto diagrams

Relations diagram

Cause & Effect diagram

Affinity diagram

Histograms

Tree diagram

Control charts

Matrix diagram

Scatter diagram

Matrix data-analysis diagram

Graphs

PDPC (Process Decision

Program Chart)

Check-sheets

Arrow Diagram
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Who

What

Where

When

Why

How

Who does it?

What to do?

Where to do it?

When to do it?

Why does he do
it?

How to do it?

Where is it
done?

When is it done?

Why do it?

How to do it?

Where should
It be done?

When should
it be done?

Who is doing it? What is being done?

Who should be
doing it?

What should be
done?

+
s

H
1

Who else can do What else can be Where else can What other time
it?
done?
it be done?
can it be done?

W
5

Who else should What else should be

do it?
done?

Who is doing 3Mus?

What 3-Mus are

being done?

Where else
should it be
done?

What other time

should it be done?

Why do it there?

How should it be
done?

Why do it then?

Can this method

be used in other
areas?

Why do it that
way?

Is there any other

way to do it?

Where are 3Are there any 3Are there any time

Mus being
Mus in the way of
3-Mus ?
done?
thinking?

Are there any

3-MUs in the
method?

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VELOCITY FOR COMPETITIVE

ADVANTAGE

Standardization
Process optimization
Elimination of waste

Evolution in people and technique

Durable training

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CUTTING
CHANGE OVER
TIME

7. Set-up board
for
visualizatio
n&
monitoring
6. Analysis
&
improve
ment
5. Set
process
with new
scenario

1. Form a
team &
allocate
responsibilit
ies
2.

Measur
e
current
state

Seven
Steps
3. Analysis &
improvem
ent
4. Apply first
improveme
nt

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CHAPTER VI

CHANGING
the CORPORATE CULTURE

The costumer :
The ultimate Judge of quality
The eye of the needle
struggle to enter the market

1
2

Supplier relations

Changing Corporate culture :

Challenge to the west
We call some societies primitive
because of their desire to remain in the
same state and in unchanging standard
of living as their gods or ancestors
created them at the beginning of time
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Anticipate Business Fluctuation

BUY

Establishing better
criteria to measure
optimum inventory
levels

Developing additional
supply sources that
can ensure faster
delivery

Improving how orders

are placed

Improving the quality of

information provided to
suppliers

Establishing better
physical distribution
system

Understanding the
suppliers internal
requirements better

(Outside
contactors)

MAKE
(part time
/contract
employee)

Conventional
Wisdom

Japanese
Revolutions

Higher quality leads to

higher costs

Higher quality leads to

lower costs

Larger lots lead to lower

costs

Smaller lots lead to lower

costs

Workers do not need to be

taken into account

A thinking worker is a
productive worker
// YIS//062709//

Constant
Constanteffort
efforttotoimprove
improveindustrial
industrialrelations
relations
Emphasis
Emphasison
ontraining
training&&education
educationofofworkers
workers

Developing
Developinginformal
informalleaders
leadersamong
amongthe
theworkers
workers

getting
workers'
acceptance
and
overcoming
their
resistance
to change.

Formation
FormationofofSmall
SmallGroup
GroupActivities
Activitiessuch
suchas
asQC
QCcircles
circles
Support
Support&&recognition
recognitionfor
forworkers
workersKAIZEN
KAIZENeffort
effort

Creating
CreatingaaCooperative
Cooperative
atmosphere
atmosphereand
and
corporate
culture
corporate culture

Conscious
Consciouseffort
effortfor
formaking
makingthe
theworkplace
workplaceaaplace
placewhere
where
Workers
can
pursue
life
goals
Workers can pursue life goals
Bringing
Bringingsocial
sociallife
lifeinto
intothe
theworkshop
workshopas
asmuch
muchas
as
practical
practical
Training
Trainingsupervisor
supervisorso
sothat
thatthey
theycan
cancommunicate
communicatebetter
better
&&create
a
more
positive
involvement
with
workers
create a more positive involvement with workers
Bringing
Bringingdiscipline
disciplinetotothe
theworkshop
workshop

// YIS//062709//

KAIZEN PHILOSOPHY

Be it our working life, our social

life, or our home life, deserves to
be constantly improved

// YIS//062709//