Kaizen: Kaizen By Sourabh Slide 2: 1. Management : a different approach 2. Kaizen , Its History and importance 3. Key Features and requisites of Kaizen 4. Key Kaizen Practices 5. Kaizen at Toyota 6. Summary Management – a different approach: 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: 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 ?: 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 ). How did it gain importance ?: 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 ?: 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: Kaizen and Management Levels Key Features of Kaizen: 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: 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: 7 Conditions for Successful Implementation of Kaizen Strategy 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. The Key Kaizen Practices: 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 Mindset and Culture - Explained: Mindset and Culture - Explained 1. A Customer Orientation holds that the main task of the organization is to determine the perceptions, needs, and wants of target markets and to satisfy them through the design, communication, pricing, and delivery of appropriate and competitively viable offerings. ------- P . Kotler 2. A small group of employees who come together to discuss with the management issues related to either quality control or improvement in production methods form a Quality Control Circle (QCC). These employees usually work in the same areas, and voluntarily meet on a regular basis to identify, analyze and solve their problems. Mindset and Culture - Explained: Mindset and Culture - Explained Suggestion Process involves some of these steps - Improvement in one's own work ,Improvement in the working environment ,Improvements in product quality and Ideas for new products , Customer services and customers relations Discipline in the work place Small Group activities are designed to help groups develop effective communication & problem-solving skills. Ex : Objects are scattered in an indoor or outdoor place. In pairs, one person verbally guides his/her partner, a blindfolded person, through the minefield. Mindset and Culture - Explained: Mindset and Culture - Explained Co-operative Labor Manager Relations . TQM functions on the premise that the quality of the products and processes is the responsibility of everyone who is involved with the creation or consumption of the products or services offered by the organization. Quality Improvement is a formal approach to the analysis of performance and systematic efforts to improve it. There are numerous models used. Some commonly discussed include: PDSA , Six Sigma , CQI, TQM The Key Kaizen Practices: 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 Production Process - Explained: Production Process - Explained 1. Automation and Robotics Autonomation is ‘ automation with a human touch ‘ . If there is a problem the machine can not resolve , the production is stopped and the human workers look into the matter and apply countermeasures so that such things do not happen again . Zero defects tries to bring defects in production to zero . The belief here is that defect prevention is preferable to quality inspection and correction . Ex : Car companies reducing their Quality Control processes and asking suppliers to ensure defect free parts Production Process - Explained: Production Process - Explained In Total Productive Maintenance , the machine operator is thoroughly trained to perform much of the simple maintenance and fault-finding. Eventually, by working in "Zero Defects" teams that include a technical expert as well as operators, they can learn many more tasks . Kanban is one means through which JIT is achieved . It is a scheduling system that tells you what to produce, when to produce it, and how much to produce . This it achieves by the use of coloured kanban cards or gestures . Production Process - Explained: Production Process - Explained The Just-in-time inventory system focus is having “the right material, at the right time, at the right place, and in the exact amount”-Ryan Grabosky , without the safety net of inventory. Productivity Improvement involves improvement of product quality which often leads to cost reductions .It also tries to increase output per worker . New Product Development The quick and easy kaizen process: The quick and easy kaizen process The employee identifies a problem, waste, or an opportunity for improvement and writes it down. The employee develops an improvement idea and discusses it with his or her supervisor. The supervisor reviews the idea within 24 hours and encourages immediate action. The employee implements the idea. If a larger improvement idea is approved, the employee should take leadership to implement the idea. Kaizen at Toyota: 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: 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 Visionaries: Visionaries Henry Ford Taiichi Ohno Summary: 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 .