kaizen, japanese strategy
TRANSCRIPT
KAIZEN
PDCA
TABLE OF CONTENTS
6. The KAIZEN Approach to Problem Solving
5. KAIZEN Management
4. KAIZEN, The Practice
3. KAIZEN by Total Quality Control
2. Improvement East and West
7. Changing the Corporate Culture
1. KAIZEN, The Concept
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KAIZENThe Concept
CHAPTER I
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KAIZEN Values Kaizen & Management
Implications of QC for KAIZEN
KAIZEN & TQCKAIZEN & The
Suggestion System
Kaizen & Competition
Process Oriented
Management VS Result Oriented
Management
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• Custom
er orientation
• TQ
C
• Robotics
• Q
C circles
• Suggestion system
• Autom
ation
• Discipline in the
workplace
• TPM
• Kam
ban
• Q
uality improvem
ent
• Just in Tim
e
• Zero defects
• Small-group activities
• Cooperative labor –
managem
ent relations
• Productivity im
provement
• New-product developm
entKaiZe
N
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JOBS FUNCTION PERCEPTIONS
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Innovation
KAIZEN
MaintenanceInnovation
Maintenance
Top management
Middle management
Supervisors
Workers
Japanese perceptions Western perceptions
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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
managementUse 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 moraleSupport 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 self-development to become better
problem solvers
Enhance skills and job performance
expertise with cross education
Deming Wheel
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Design
Production
Sales
Research
PDCA
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Three Award in Sumo Tournament ;
- An outstanding performance award- A skill award- A fighting spirit award
Focus more on processRather than result !!!
Improvement East & West
CHAPTER II
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JAPANWESTERN
INNOVATION
KAIZEN
Science Technology Design Product
ion Market
Innovation KAIZEN
Continuous Improvement
Breakthrough
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KAIZEN INNOVATION
Long termUn-dramatic Effect Short term
Dramatic
Small steps Pace Big steps
Continuous & incremental Timeframe
Intermittent &non incremental
Gradual & consistent Change Abrupt & volatile
Everybody Involvement “Champion”
Collectivism, group efforts, systems
approachApproach Rugged individualism,
individual ideas & efforts
1
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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
2
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InnovationMaintenance
Maintenance
Standard
Standard
Actual
Actual
Time
Innovation Standard
StandardKAIZEN
Actual
ActualKAIZEN
Time
PATTERNInnovation
Innovation + Kaizen
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INNOVATION
Creativity
Individualism
Specialist oriented
Attention to great leaps
Technology oriented
Information: closed, proprietary
Functional (specialist) orientation
Seek new technology
Line + staff
Limited feedback
KAIZEN
Adaptability
Teamwork (system approach)
Generalist-oriented
Attention to details
People oriented
Information: open, shared
Cross functional orientation
Build on existing technology
Cross functional organization
Comprehensive feedback
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High Technology
Technology oriented innovation
Technology oriented KAIZEN
Innovative product with Kaizen orientation
Low Technology People oriented KAIZEN
Kaizen oriented product
Technology Level Preferred Process Product
Upcoming Japanese product perceptions
KAIZEN by TOTAL QUALITY CONTROL (TQC)
CHAPTER III
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1
2
3
4
5
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
6
7
Customer oriented TQC, not manufacturer oriented TQC
TQC starts with training and ends with training
8
9
Cross Functional Management to Facilitate Kaizen
Follow PDCA cycles
10 Standardize the results
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5. Safety
6. New-product development
7. Productivity improvement
8. Supplier management
4. Meeting delivery schedule
3. Meeting production quota
1. Quality assurance
2. Cost reduction
TQC
TQC
Muda (Waste)Muri (Strain)
Mura (Discrepancy)
Manpower
Technique
Method
Time
Facilities
Jigs and tools
Materials
Production volume
Inventory
Place
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Definitions of
problem
Analysis of problem
Identification of
causesPlanning counter-measure
s
Implemen-tation
Confirmation of
results
Standardi-zation
PLAN
DO
CHECK
ACT
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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
grade? Is the work standard upgraded?
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? 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?
4M
checklist
KAIZEN the PRACTICE
CHAPTER IV
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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
MANUFACTURING OBJECTIVES
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Management Oriented KAIZEN
Group Oriented KAIZEN Individual Oriented KAIZEN
Tools Seven Statistical ToolsNew Seven ToolsProfessional skills
Seven Statistical ToolsNew Seven Tools
Common senseSeven Statistical Tools
Involves Managers & Professional QC- circles group members Everybody
Target Focus on system & Procedures
Within the same workshop Within one’s 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 activitiesQC circlesSuggestion system
Suggestion system
Implementation cost
Sometimes require small investment to implement the decision
Mostly inexpensive Inexpensive
Result New system and facility improvement
Improved work proceduresRevision of standard
On-the-spot improvement
Booster Improvement in Managerial performance
Morale improvementParticipationLearning experience
Morale improvementKAIZEN awarenessSelf-development
Direction Gradual & visible improvementMarked upgrading of current status
Gradual & visible improvement
Gradual & visible improvement
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5s
B
E
C
D
ASeiri
Seiton
Seiso
Shitsuke Seiketsu
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Waste of REJECTS
quality
Waste in WIP
Waste in DESIGN
deliverycost
product
Method / system
resources
moneyfacilitiesmanpower
Waste in EXPENSES
Waste in FACILITIES
Waste in MANPOWER
Waste in MANAGEMENT
Waste in MOTION
Waste in FIRST PHASE OF PRODUCTION
NINE WASTES !!
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JIT
Shortened lead time
Reduced time spent on non-process work
Reduced inventory
Better balance between different processes
Problem clarification
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QCS
Top management responsibility :
Strategy & Planning
Administration responsibility:
Provide support
100%
50%
0%
Invo
lvem
ent
Idea Development
DesignDevelopment
ModelDevelopment
Trial runs & customer appraisal
Final product design
Tools & machinery
Process control
Production
Time
PRODUCT DEVELOPMENT PHASE
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KAIZEN MANAGEMENT
CHAPTER V
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Management & Labor ; Enemies or Allies?
Confrontation fighting over how to divide the pie
Cooperation Working together to bake bigger pie
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 labor-related subjects as technological innovation, personnel transfers, and scrapping facilities// YIS//062709//
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Collective bargaining
Alleviation of frustrations
Labor-management consultation
Small-group activities
Confrontation
Cooperation
Formal & Organization oriented
Informal & Individual oriented
MANAGEMENT & LABOR RELATION
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+Job allocation if labor is flexible
Income potential
Job potential if management is
flexible
-
Job potential If management is not flexible
Job allocationIf labor is not
flexibleLABOR RESPONSE
Calls for management
initiatives
Calls for labor initiatives
Goals
Long range policy
Annual top management policy
Cross-functional policy
Departmental (functional) policy
Governing Body
Board of directors meeting
Top management
Top management cross functional committee
Line management
Top management
Division Management
Middle Management
Supervisors
General statement of direction for change (qualitative )
Definition of top management statement(quantitative)
Specific goals(quantitative)
Specific actions(quantitative)
POLICY DEPLOYMENT
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The KAIZEN APPROACHto PROBLEM SOLVING
CHAPTER VI
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KAIZEN starts with a problem, more precisely the recognition that a problem exists
When there is no problem , there is no
potential for improvements
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Seven Statistical tools
• Pareto diagrams• Cause & Effect diagram• Histograms• Control charts• Scatter diagram• Graphs• Check-sheets
New Seven tools
• Relations diagram• Affinity diagram• Tree diagram• Matrix diagram• Matrix data-analysis diagram• PDPC (Process Decision
Program Chart)• 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?
Who is doing it? What is being done? Where is it done? When is it done? Why do it? How to do it?
Who should be doing it?
What should be done?
Where should It be done?
When should it be done? Why do it there? How should it be
done?
Who else can do it?
What else can be done?
Where else can it be done?
What other time can it be done? Why do it then?
Can this method be used in other
areas?
Who else should do it?
What else should be done?
Where else should it be
done?
What other time should it be done?
Why do it that way?
Is there any other way to do it?
Who is doing 3-Mus?
What 3-Mus are being done?
Where are 3-Mus being
done?
Are there any time 3-Mus ?
Are there any 3-Mus in the way of
thinking?
Are there any 3-MUs in the
method?
5Ws + 1 H
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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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1. Form a team & allocate responsibilities
Seven Steps
2. Measure current state
3. Analysis & improvement
4. Apply first improvement
5. Set process with new scenario
6. Analysis & improvement
7. Set-up board for visualization & monitoring
CUTTING CHANGE
OVER TIME
CHANGING the CORPORATE CULTURE
CHAPTER VI
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1The costumer : The ultimate Judge of quality
2The eye of the needle – struggle to enter the market
3Supplier relations
4Changing 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”
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
Anticipate Business Fluctuation
BUY(Outside contactors)
MAKE(part time/contract employee)
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Conventional Wisdom
Higher quality leads to higher costs
Larger lots lead to lower costs
Workers do not need to be taken into account
Japanese Revolutions
Higher quality leads to lower costs
Smaller lots lead to lower costs
A thinking worker is a productive worker
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Constant effort to improve industrial relations
Emphasis on training & education of workers
Developing informal leaders among the workers
“Creating a Cooperative atmosphere and
corporate culture”
Formation of Small Group Activities such as QC circles
Support & recognition for workers’ KAIZEN effort
Conscious effort for making the workplace a place where Workers can pursue life goals
Bringing social life into the workshop as much as practical
Training supervisor so that they can communicate better& create a more positive involvement with workers
Bringing discipline to the workshop
getting workers' acceptance and
overcoming their resistance
to change.
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“Be it our working life, our social life, or our home life, deserves to
be constantly improved”
KAIZEN PHILOSOPHY