The KAIZEN Challenge

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 Definition of KAIZEN

KAI Change

ZEN Good
(for the better)

KAIZEN = Continual Improvement

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  major part of working culture
Doing without realising it


 continuous improvement
/ on-going improvement.


involves everyone
± top management, managers

 and workers of all levels.

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 „
and „ did KAIZEN helped Japan
become A Major Global Player.

Business Environment Globally

In the 1960¶s and early 1970¶s,



 

  
 
 

 

  

[e-Engineering strategy shows best results

r [apidly expanding markets
r Consumers more towards quantity than quality.
r ³Products sell by themselves´
r There is abundant and low cost-resources
r A belief that innovative products could offset sluggish
performance in traditional operations.
r Management more concerned with increasing sales and
market shares than with reducing cost.


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 The oil crisis
in 1970s!!!!

The new situation (70¶s) ü

r Cost of material, energy and labour - Sharp increases

r vercapacity of production facilities
r Increased competition in saturated or dwindling
markets (sunset industries)
r Consumer values demanding quality first
r The need to introduce new products more rapidly
r The need to lower breakeven point


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 To a company, this meant

r Increased cost of resources

r Stiffer competition
r Quality level achievement strategic to win
customers
r The need to develop customer-orientated
products and services faster than ever
before.
r Delays in adopting the latest technology
are costly
r Delays in adopting improved management
techniques are costly

Japan¶s ÷
 Strategy was able to meet the challenges

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 The Challenges Facing Us in the 21st Century

1. Need for high flexibility to respond to

market changes and customers¶
requirements
2. Greater control for investments and the
need for high returns on investments
3. Faster life cycle of products
4. Increasing cost pressure and price wars
5. Global relocation to countries of most-
benefit, e.g. China

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 The Kaizen Strategy
No cultural factors
Many Japanese management strategies succeed
simply because they are good management practices.

ver the last thirty years, many companies in many

countries worldwide (including Malaysia ± Look East)
have successfully adopted them.

The lack of cultural bias means that these practices

can be just as successfully implemented anywhere.

The difference is not one of nationality

but one of mentality.

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 6




 recognition that AN
and EVE[

company has problems in their
operations.

 corporate culture ³everyone can

freely admit these problems.´

 problems become opportunities

for improvement and solutions.

 They will not be hidden, covered

up or neglected.

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 6



r problems as opportunities for

improvements and solutions.

r problems are collective

responsibilities to be solved
together.

r Cross-functional problems
(involving a few departments, such
as design or launching new
products) in „estern management
are seen in terms of conflict-
resolution.

r apply systematic and collaborative

approach for cross-functional
problem solving.

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 Y

  

 management must satisfy the customer

and serve customers¶ needs if it is to stay
in business and make a profit.

 Customers¶ concerns include the critical

areas of cost, quality and scheduling.

 All Kaizen activities should eventually

lead to increased customer satisfaction.

³Customer is King´

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 6


 

Everyone is involved in change every day
³here will be no progress if you keep on doing
things exactly the same way all the time.´

r Kaizen generates a process-orientated way of

thinking

r Management supports and acknowledges people¶s

process-orientated efforts for improvement.

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 ÷
EN is not otal Corporate Strategy

´ Kaizen does not [EPLACE Corporate Strategy.

e.g. considerations of Product design and

marketing strategy, innovations and
diversifications
´ Important for top management to always check
actual market conditions and trends, information
from customers and competitors.
´ Identify the trade cycles (cyclic conditions or
product life cycles ± sunrise and sunset
industry/technology)

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Kaizen ± „[K CULTU[E
CNTINUUS IMP[VEMENT
INVLVES EVE[
BD

[e-Engineering - TEC NLG
D[IVEN

T [IVE N IG and FAST
G[„T IN ECNM

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â Problem [ecognition
â Problem Solving
â Customer Driven
â Process rientated
â Part of Total Corporate Strategy
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 ÷


  

Management has two components

Management works to MAINTAIN its operations
And
Management works to make IMP[VEMENTS

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 Maintenance ü
Ë activities to maintain current technological,
managerial and operating standards

Ë Management first establish policies, rules,

directives and procedures (Standard
peration Procedures ± SP)

Ë Ensure compliance by workers.

Ë Enforce through discipline if needed

Ë Management provide training or review

Ë [evise the standard so that people can

follow it.
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 Kaizen ü
 Kaizen is incremental improvements that is
continuous

 Many small improvement steps lead to total big

step

 Improvements are made with little cost involved

 It involves all the employees at all levels

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³activities directed toward improving current standards.´

Two components ± [e-ENGINEE[ING and KAIZEN

[e-ENGINEE[ING
1.Involves a drastic improvement to current conditions

2.Large investment in new technology / equipment

3.Long periods in between these innovation jumps

4.Specialist and selected top people are involved only

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„ E[E T D[A„ T E LINE??

ow much of your capability is used for each?
And
ow about the whole organisation?

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 All Job Functions has the two components

Top Management

Middle Management M




Supervisors 



„orkers

[esponsibility and Contribution

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 GEMBA KAIZEN Perception of Job Function

mprovement

Top Management

Middle Management ÷ M

Supervisors Maintenance
„orkers

[esponsibility and Contribution

All levels of employees can do KAIZEN

Some will do [e-Engineering

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 „estern Perception of Job Function

mprovement

Top Management

Middle Management
Maintenance
Supervisors

„orkers

[esponsibility and Contribution

Some will do [e-Engineering

All levels of employees do maintenance

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Nurtures  






 



(alive, like a flowering

plant)


Needs
 
 

  

Needs 

   
 

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 ÷ M

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 [e-Engineering - like a volcano that erupts in abrupt
explosions from time to time.

Ideal pattern ± the ³STEP´




Ex : Capacity for new machine 3000/day

Quality of new products when set up 10,000ppm
[eliability ± µzero breakdown¶ 30,000 hrs/mth
Sales volume 3 million pieces/month
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 After implementation of a new system,
it starts to deteriorate

Performance
Drops

ctual pattern from [e-Engineering




Benefits of [e-Engineering lost with time

Unless
Effort is made to MAINTAIN and IMP[VE the
standards
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 [e-Engineering
Alone

„hat should be
(Standard)

„hat should be Maintenance

(Standard)
„hat actually is
[e-Engineering Maintenance




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 [e-Engineering plus KAIZEN

 

[e-Engineering

 

[e-Engineering




Kaizen - constant effort not only to maintain

but to upgrade standards
Every new standard is temporary,
only a stepping stone to the next improved one.
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÷ M


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Kaizen depends on everyone

doing their little bit
to move the mountain

Skills and Experience makes workers the

experts in their process

Investing in Kaizen means investing in people

Kaizen is people-orientated

n contrast innovation is technology-

and money-orientated.

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 å 
÷




Emphasis Kaizen [e-engineering

Effect Long-term But Undramatic Short-term But Dramatic

Pace Small Steps Big Steps

Timeframe Continuous And Incremental Intermittent

Change Gradual And Constant Abrupt And Volatile

Approach Group Efforts Individual Ideas And Efforts

Involvement Everybody Selected Few

Mode Maintenance And Improvement Scrap And Build

Know-how Conventional Know-how Technological Breakthrough

[equirement Little Investment Large Investment

rientation People Technology

Evaluation Process And Efforts [esults For Profits

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 Kaizen and QC

Quality Control (QC), the old view ü

1. Inspection of finished goods and
products.
2. nly concerned for product-
quality control
3. This is the narrow viewpoint of
QC
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 Quality Control in Gemba Kaizen

Quality Control - beyond prevention of defects from

reaching the customer.

Quality Control are the goals of the company ü

 To provide

 


that satisfy
customer requirements and earn customer trust

 Steer company towards 



 

 by
improving internal management.
6rosperity to ll ogether.

 elp employees 




 for achieving
the corporate goal through policy deployment and
voluntary activities.
Mankichi Teteno (President of Japan Steel „orks )
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 Centered on improvement of managerial
performance at all levels, like ü

r quality assurance
r cost reduction
r meeting production quotas or targets
r meeting delivery schedules
r safety
r uman [esources development
r new products development
r productivity improvement
r supplier management

KAIZEN is the spirit of Quality Control

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 ÷aizen Quality
mprovement Cycle.
Building quality into people means helping them become
KAIZEN-conscious.

KAIZEN Quality Improvement Cycle is used irrespective

of cross-functional or functional problems.

1. Identify the problem

1

4. Identify 2. Standardize
the next
4 2
results to
prevent re-
problem occurrence
to tackle
3. Use problem-
3 solving tools for
counter-measures
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 ÷aizen Quality
mprovement Cycle.



U By going through these cycles continuously,

U it becomes a habit in action,
U leading to habits in thinking and
U finally people become Kaizen-minded

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 ÷
÷



UNDE[STANDING and P[ACTISING

KAIZEN CULTU[E
[
KAIZEN KE
P [ASES

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 Speak with Data

Kaizen emphasises the use of data.

Every thing can be put down to a number (quantified)

and every number can be given a cost (costing).

r „e should talk with data and facts

r „hen you see data, doubt it!
r „hen you see the measuring instrument, doubt it!
r „hen you see chemical analysis, test results, doubt it!

There are such things as false data, mistaken data and

immeasurable factors.

Kaoru Ishikawa (author ³Japanese Quality Control´)


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[eflects the belief in
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If you take care of the quality, the profits will take care of
themselves.

Quality here refers to the broader meaning of quality,

including  uality assurance, cost reduction, efficiency,
delivery and schedule, safety and employee¶s morale, etc.

Seeking improvement for improvement¶s sake is the surest

way to strengthen their companies¶ overall competitiveness.

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 Managing the 6revious 6rocess

Go back to the previous process to seek the cause of a

problem at your process.

³„
did this problem reach my process?´

Problem solving methods are used e.g. 5 „
s, 5„ 1 ,

Improvements comes from being aware of what comes

from the previous process.
Î

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There should be no assumption of the quality that
reaches us. Gemba!

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 he Next 6rocess is My Customer.
Process has become impersonalized. No feeling.

Ë 



to those in the
following process.

Ë Be sincere enough to 


±
claim ownership of your process

Ë Do everything in your powers to
 them.

ÎM
M!÷

Ë I am the   


.

Assuring quality to each customer at each stage will

assure quality in the finished product

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 Standardise the [esults
Not every operation in a work process need to be
standardised.

Identify the critical elements that must be measured and

standardized ü

cycle time, tact time, work se uence, pre-start

checklist and conditions, standard time.

Standards - binding on everyone.

Management¶s job is to ensure everyone works in

accordance with the established standards.

This is called ³Discipline´


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Every worker is in gemba for at least eight hours

Everyone is always busy and working
People moving around in a hurry or with a purpose
ow much of this time and energy is actually adding
value?

MUDA means waste

here is a much deeper connotation


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 „ is MD important?

„ork is a series of processes or steps

Starting with raw material and ending with a
final product or service
At each process, value is added to the
product or service
(In the service sector ± a document or
other piece of information)
Then it is sent to the next
process

The resources at each process ± people and

machines ± either add value or it does not

MUDA is any activity that does not add value

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 MUDA in gemba is classified into
the following seven categoriesü

 MUDA of
 
 

 MUDA of 



 MUDA of 
" #

 MUDA of 


 MUDA of 




 MUDA of a

 MUDA of  




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.  
$6YM

1. Usually start with the thinking of line supervisors

2. „orried about problems such as machine failure,
rejects, absentism
3. Feels urgent need to produce more than necessary
just to be on the safe side
4. Tries to get ahead of the planned production
schedule
5. „ith expensive machines, prioritise maximum and
efficient use rather than the quantity required to
fulfill sales requirements
6. Excess workers who may be idle, maximize
workers¶ efficiency

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r Extra consumption of raw materials before actual
sales requirement
r Usage of manpower and utilities (electricity,
overheads)
r Diversion of machinery, even adding machinery to
increase capacity
r Increase in interest burden (cost of purchase)
r Additional space to store excess inventory
r Added transportation and administrative costs
r Gives people a false sense of security
r elps cover up actual problems
r Confuses data and information that can provide clues
for kaizen
r Cost of production increase without increase of value
r Potential of ³no sales´ turning into dead-stock

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. MD of
NVEN[

r Inventories of Final products,

semi-finished products
(work-in-progress),
parts and supplies

r All inventory does not add value.

r Inventories just stay there and gather dust.

r Inventory adds cost to operation

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 MMM 
6 M "Y

[ejects interrupt production

(eg need for recovery)
require expensive rework
may have to be scrapped
waste of resources, effort

r igh speed production systems

r may cause damage to expensive jigs and
machines
r workers assigned just to monitor and stop
the machine when defects are detected.

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 M$ 
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Motion of a person¶s body that is not related to adding

value
„alking ü does not add value
Lifting ü carrying or lifting heavy objects
Transferring ü
pick up, transfer to another hand
(eg. Sewing, crimping process)
distance of parts and tools
Not following the standard process, worse cycle time

Actual motion of a worker that adds value to a product

is usually a few seconds.

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V. MD of M
N

1. Identify actual value added motion and

- reduce the other muda of motion

2. bserve the way operators use their

a) ands
b) Legs
c) ead (including eyes)
d) Body (twist, lean, transfer position)

3. [e-arrange placement of parts / jigs / actuators

(switches)


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 $ 
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Processing refers to
U the modifying to a workpiece or
U a piece of information
U in order to add value to it and
U send it to the next process.

Muda can be caused by:

1. „eaknesses in the technology used (equipment, jigs)
2. „eakness in the design of products
3. „eakness in design of process flow
4. Failure to synchronise process (over control of
specification at some stations, relaxed in others)


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 $M 
& MM

The worker cannot do his value added

work due to idling
´ his hands, body are idle
´ interruption that stops him continuing
his work
´ workers are available for and want to
work but is left waiting

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 $M 
& MM

Muda can happen due to

´ line in-balance (the previous process cannot
pass parts to him)
´ the lack of fresh parts coming to his process
´ machine or jigs breakdown
´ the worker¶s job is only to monitor automatic
machines performing the value added job
´ „orkers waiting while a machine is doing the
value added job. his is most difficult to
detect.
´ wrong parts are delivered
´ line equipment set up for model changes

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 $MM 
  6

Transport is essential part of operations

BUT it does not add any value to products
no matter how many times or
how fast we do it

Isolated Island process - streamline!

[educing transportation reduces

U excess inventory,
U waiting,
U non-value added packing,
U data and mixing control,
U equipment and materials etc.
U ther MUDAs!
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 GEMBA KAIZEN will reduce the
MUDAs through applying the
Kaizen Cycle continuously ü

 MUDA of overproduction
 MUDA of inventory
 MUDA of repairs / rejects
 MUDA of motion
 MUDA of processing
 MUDA of waiting
 MUDA of transport

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 GEMBA KAIZEN

GEMBA means the real place

³ the place where real action occurs´

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 GEMBA MANAGEMENT [elationship

Gemba
â provides product or service that satisfies customers
â achieves goals set by management
â the place to achieve real improvements
â kaizen is effectively implemented

Management
â takes initiative in establishing policies, targets and
priorities
â accountable for the outcome /success
â allocating resources such as manpower and money
â exercise leadership
â decides the most urgently kaizen strategy
â listen and learn from employees in gemba
â provide most appropriate help to actual problems

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 The Golden [ules
of
Gemba Management

1. „hen a problem arises (abnormality) go

to gemba first
2. Check the gembutsu (relevant objects)
3. Take temporary countermeasures on the
spot
4. Find the root cause
5. Standardize to prevent recurrence

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 Ú




The Gemba Circle ± training method

r Nothing else matters.

r „hen you have a concern with
Gemba,
r
ou must go there first.
r All other action is futile (MUDA)

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 ÃY 

Gembutsu means something physical, tangible

Broken down machine,
rejected product,
tool damaged,
returned goods,
a complaining customer

Gembutsu in Gemba ± find the actual root cause

³listen to gembutsu´
³Let the gembutsu speak to me´
Using the 5 senses plus commonsense

³Àe proud of the scars on your hands ³

± Soichiro onda

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
ou can always take temporary

countermeasures to keep the process moving.

 Every second lost to production is lost forever.

This is a terrible MUDA.

 ³Do it now. Do it right away!´

 [emember who and where the money earners

are!!

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Y


 Use 
  
 and common sense
solutions
e.g. 5 „
s

 Deeper  
 will be needed more
complicated problem
 Gemba can provide the   
 ! 
³Do not jump to conclusions too fast´
³Do not make a simple problem into a
complicated crisis´
p "  to be gotten from gemba (relevant
application)

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 '&!(

p „ 
 
"
 # 
#"


 
! $
Because the floor is slippery and unsafe
p „ 


 
 
" !$
Because there is oil on it
p „ 

  


$
Because the pump parts are leaking
p „ 


% $
Because the oil is leaking from the pump
couplings
p „ 


  $
Because the rubber seals are not fiitted
properly.
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 ' 
  
 
 


â nce a problem has been solves, standardise the

new procedure

â All similar problem area in gemba should now

follow the new standard way of working.

â Critical points and processes should be

documented as standards to avoid
misunderstanding.

â Standardisation is one way for all in gemba to

benefit from the Kaizen improvements.

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 Strategy of KAIZEN towards EXCELLENCE
r 
  



r
  
r   
r 


  
Concepts r 
     
r
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Customer Q D People
driven C Culture

Systems [ Tools
r !#!
r 
" r "
r 
 r -  
r
 
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%

r "


" r  
 

r  ! !"$ ! r "


 
Leadership r "&
Involvement r "

Commitment r ' 
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