Kaizen Intro

Welcome to

Kaizen

Monday; Sept 15, 2003

An Improvement Philosophy

Over-manned Flight

Employees/Aircraft Passenger/EmployeeAir-India 664 153Singapore airlines 341 441Air France 277 426Emirates 267 703British Airway 227 573Lufthansa 185 714United Air lines 174 953Japanese Airlines 146 1589Industry Average 162 986

Source : BW, December 9, 2002

An Improvement Philosophy

Always Good

Continual Improvement

Change For the better

School Wisdom

Understanding

Implied Meaning

Harnessing the Godliness of Human being

Understanding

Why Keep Moving?Why Keep Moving?

SurvivalSurvival

You may be thinking that you are on a

right track, but if you keep on sitting there

some one will over run you.

A Japanese saying

Cost Of Quality

Time

Prevention cost

Appraisal cost

Cos

t of

Con

for m

ance

Total cost of Quality

Lost opportunityExceeding requirementInternal +

External Failure

Cos

t of N

on-

Con

for m

ance

Cos

t of L

ost

Opp

ortu

nity

Cost Of Quality

Operating Cost

Profit Cost of Quality, 20-30 %

Kaizen is Journey from

Event Cause

ResultProcess

Gross Micro

Understanding

Enforcement of change Inducement of

change

Kaizen is : Process improvementObservationUse of new ParadigmShort timeZero investmentHuman development & EmpowermentProfit & Saving – Plenty

Understanding

The great evolutionist,

Dr David Starr Jordan said ------

Try to overcome Imperfection and

If you succeed,

Other imperfections will come to the surface

Don’t complain, ---

That is the nature of the world

Keep on striving and correcting Until you reach the state of absolute perfection.

Imperfection Is Inherent in Nature

Kaizen is : Process improvementObservationUse of new ParadigmShort timeZero investmentHuman development & EmpowermentProfit & Saving – Plenty

Understanding

Use of New Paradigms :

Change over from Batch production to single piece production

Fish giving multitude of Eggs One Egg at a time

Use of New Paradigms :

Shojinka (unification of labour)

Overlapping of responsibility

Use of New Paradigms :

Team rather than individuals are recognised

Making your machine perfect

Kaizen is : Process improvementObservationUse of new ParadigmShort timeZero investmentHuman development & EmpowermentProfit & Saving – Plenty

Understanding

It is a positive attitude through

Existing operation has always a lot of room for improvement

Existing facilities & methods can always be improved by effort

The accumulated improvements makes big difference

Kaizen Mind

Kaizen Umbrella

TQMJITQC CircleSuggestion systemAutomation

TPM5SQuality ImprovementZero defectSmall group activity

Kaizen

Division of LabourAdam Smith, 1776

Alfred SloanMgmt Guru (Manager can

control from Hq by controlling Finance & Production number)

Henry FordProdn Guru (Work was

brought to worker in tiny repeatedly work; work was to install single part)

Major Kaizen Concepts

Kaizen and Management

Process Vs Result

Following the PDCA / SDCA cycle

Putting Quality First

Speak with Data

The next process is the Customer

Kaizen Grid – Japanese Way

Top

Middle

Supervisor

Worker

Impro

vement

Impro

vement

Impro

vement

Impro

vement

Maintenance

Maintenance

Maintenance

Maintenance

Concern

Top

Middle

Supervisor

Worker

Job Perception Elsewhere (Western)

Concern

Maintain

Maintain

Maintain

MaintainIm

prove

Worst CompaniesWorst Companies

Top

Middle

Supervisor

Worker Mai

ntai

nConcern

Culture at Worst Companies

•No Kaizen involvementNo Kaizen involvement

•Change is forced by market Change is forced by market

conditionsconditions

• DirectionlessDirectionless

Breakdown between Maintenance, Kaizen & Improvement

Concern

Improve

Kaizen

Maintenance

Top

Middle

Supervisor

Worker

Type of Improvement

Improvement

KaizenSmallincrement

InnovationDrasticincrement

Ideal Pattern of Innovation

Impr

ovem

ent

Time

Innovation

Innovation

Innovation

SN Criteria Kaizen Innovation

1 EffectLong termLong lastingUn-dramatic

Short termDramatic

2 Pace Small steps Big steps

3Timeframe

Continuous Intermittent

4 Change Gradual Abrupt

Kaizen Vs Innovation

Kaizen Vs Innovation

SN Criterion Kaizen Innovation

5 InvolvementEverybody Select few

6 ApproachGroup effortSystemsapproach

Ruggedindividual ideasand effort

7 ModeMaintenanceand improve

Scrap andrebuild

8 SparkConventionalknow how

Technologicalbreakthrough

Kaizen Vs Innovation

SN Criterion Kaizen Innovation

9Practicalrequirement

LittleinvestmentGreat effort tomaintain

LargeinvestmentLittle effort tomaintain

10Effortorientation

People Technology

11Evaluationcriteria

ProcessBetter result

Results forprofit

12 AdvantagesSlow growtheconomy

Fast growtheconomy

Parkinson’s Law

An organisation, once it An organisation, once it

has built its structure, has built its structure,

begins its declinebegins its decline

Effect of Parkinson’s LawIm

prov

emen

t

Time

What actually should be

Maintenance

What actually is

Actual Pattern of InnovationIm

prov

emen

t

Time

Decline

Decline

Belief of Kaizen Strategist

Standards are tentativeStandards are tentative

Through continuous effort, Through continuous effort, one standard leads to one standard leads to anotheranother

Standards are tentativeStandards are tentative

Through continuous effort, Through continuous effort, one standard leads to one standard leads to anotheranother

Innovation + KaizenIm

prov

emen

t

Time

Kaizen

Continuousnew standards

Innovation

Innovation

Major Kaizen Concepts

Kaizen and Management

Process Vs Result

Following the PDCA / SDCA cycle

Putting Quality First

Speak with Data

The next process is the Customer

Major Kaizen Concepts

Kaizen and Management

Process Vs Result

Following the PDCA / SDCA cycle

Putting Quality First

Speak with Data

The next process is the Customer

P D C A Cycle for Improvement

Act Do

Plan

Check

S D C A Cycle for Maintainance

Act Do

Standardize

Check

A PC D

A SC D

A PC D

A SC D

KAIZEN

KAIZEN

Maintenance

Maintenance

PDCA/SDCA CyclePDCA/SDCA Cycle

A P

C D

A P

C D

A S

C D

A S

C D

STANDARDIZATION

KAIZEN

STANDARDIZATION

KAIZEN

IMPROVEMENT

Never Ending Improvement

Solve

Takenew problem

Standardise

Major Kaizen Concepts

Kaizen and Management

Process Vs Result

Following the PDCA / SDCA cycle

Putting Quality First

Speak with Data

The next process is the Customer

Quality & Productivity

Definition of Kaizen

Putting Quality First

• Quality

• Cost & Delivery

Quality

Two Sides of a Coin

QualityQuality&&

ProductivityProductivity

QualityQuality&&

ProductivityProductivity

HeadHead

KaizenKaizenKaizenKaizen

TailTail

We don’t know what we don’t know?

We can’t do what we don’t know?

We won’t know until we measure

We don’t know measure what we don’t value

We don’t value what we don’t measure.

Speak With Data

What TQM (KAIZEN) Practitioners Do?

Work with hard dataWork with hard data

and not with, repeat not withand not with, repeat not with

Haunches and gut feelingsHaunches and gut feelings

Kauro Ishikawa’s Advice

• We must talk with facts and data

• … when you see data doubt them

• … when you use measuring instrument,

doubt it.

• … when you carry chemical analysis doubt it.

Reminder from Kauro Ishikawa Reminder from Kauro Ishikawa

Type of dataType of data

- False data- False data

- Mistaken data- Mistaken data

- immeasurable data- immeasurable data

Basic Philosophy of Quality Improvement

Whatever measured must be recorded

Whatever recorded must be analysed

Whatever analysed must be acted upon

Using DataUsing DataUsing DataUsing Data

Skill used in getting information from

data can make difference between

•Success and failureSuccess and failure

In God we believe,

Everybody else should bring Data.

Florida Light & power?

One Excellent Source of Data

Customer Complaints

Rich source for Kaizen

- Facts about customer pains

- Free of cost

Major Kaizen Concepts

Kaizen and Management

Process Vs Result

Following the PDCA / SDCA cycle

Putting Quality First

Speak with Data

The next process is the Customer

GEMBA

Management Support

Customer’s Expectation

Customer’s Satisfaction

House of Gemba Management

Profit Mgmt

Quality &

Safety Mgmt

Logistic (Delivery)Mgmt

Worker’s operation

InformationEquipment Product & Material

STANDARDIZATION

Good House Keeping ( 5 S)

MUDA ELIMINATION

Team Work Morale EnhancementSelf Discipline

Visual ManagementQC Circle

Suggestion

Cost Mgmt

Did it happen, because

We don’t have a Standard ?

Standards are not followed ??

Standards are not

adequate ???

Standardization

Seiri Seiton Seiso Seiketsu Shitsuke

3 M

MUDA (Waste)

MURI

(Strain / difficult task)

MURA (Irregularity, discrepancy)

Eliminating 3 M

MUDA

= Waste

People waiting for an item that has not been delivered, yet to deliver

Any human activity which absorbs resources but creates no value.

Movement of item/people from one place from other without any purpose

Goods/services which don’t meet the need of customer

Mistakes which requires re-works, rectification

Processing steps which are not needed

House of Gemba Management

Profit Mgmt

Quality &

Safety Mgmt

Logistic (Delivery)Mgmt

Worker’s operation

InformationEquipment Product & Material

STANDARDIZATION

Good House Keeping ( 5 S)

MUDA ELIMINATION

Team Work Morale EnhancementSelf Discipline

Visual ManagementQC Circle

Suggestion

Cost Mgmt

Golden Rules of Gemba Management

In Problem, first Go to Gemba

Check Gembutsu

Take temporary measures

Find Root cause

Stanadardise to prevent reoccurance

Golden Rules of Gemba Management

Check Gembutsu

Tool, Machine, fixture

Return good

Complaining customer

Golden Rules of Gemba Management

In Problem, first Go to Gemba

Check Gembutsu

Take temporary measures

Find Root cause

Stanadardise to prevent reoccurance

Golden Rules of Gemba Management

In Problem, first Go to Gemba

Check Gembutsu

Take temporary measures

Find Root cause

Stanadardise to prevent reoccurance

Golden Rules of Gemba Management

Find Root cause

Ask WHY as many times?

5 W & 1 H

(why, where, when, what, who,

how)

Excessive time spentOn correspondence

Too Many Errors Too Many Reviews

Typists Need More Training

Need Better Equipment

StandardsNot Clear

Fear ofTop Boss

Why – Why diagram

Six Honest

Serving

Man

Rudyard Kipling, 1865 -1936from "The Elephant's Child" in Just So

Stories

I keep six honest serving men (They taught me all I knew );

Their names are What and Why and When

And How and Where and Who. I send them over land and sea,

I send them east and west; But after they have worked for me,

I give them all a rest.

The Five Ws and The One H

Who What Where1. Who does it?2. Who is doing it?3. Who should be doing it?4. Who else can do it?5. Who else should do it?6. Who is doing 3-Mus?

1. What to do?2. What is being done?3. What should be done?4. What else can be done?5. What else should be done?6. What 3-MUs are being

done?

1. Where to do it?2. Where is it done?3. Where should it be done?4. Where else can it be done?5. Where else should it be

done ?6. Where are 3- MU s being

done?

Conscious Incompetence

Conscious Competence

Unconscious Incompetence

Unconscious Competence

1

3

4

2

Improvement Ideas

• Japan: 24 improvement ideas in writing per employee each year

• U.S. : Average less than one

• United Kingdom: one idea every six years

• India: Average 2-3 ideas per employee per annum (Nestle)

Arch Enemy of Kaizen

Kaizen’s Stress on People

If you want one year of prosperity, grow seeds,

If you want ten years of prosperity, grow trees,

If you want one hundred years of prosperity, grow people"

Chinese proverb

Kaizen Websites

www.gemba.comwww.kaizen.orgwww.papakaizen.com