KAIZENThe Key to Japan’s Competitive Success

By MASAAKI IMAI

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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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• C

ustomer orientation

• TQ

C

• R

obotics

• Q

C circles

• S

uggestion system

• A

utomation

• D

iscipline in the

workplace

• TP

M

• K

amban

• Q

uality improvem

ent

• Just in Tim

e

• Zero defects

• S

mall-group activities

• C

ooperative labor –

managem

ent relations

• P

roductivity improvem

ent

• N

ew-product developm

entKaiZe

N

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JOBS FUNCTION PERCEPTIONS

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Innovation

KAIZEN

MaintenanceInnovatio

n

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

ScienceTechnol

ogyDesign

Production

Market

Innovation KAIZEN

Continuous Improvement

Breakthrough

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KAIZEN INNOVATION

Long termUn-dramatic

EffectShort term Dramatic

Small steps Pace Big steps

Continuous & incrementalTimeframe

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

ModeScrap

& 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

PeopleEffort

orientationTechnology

Process & efforts for better results

Evaluation criteria

Results for profits

Slow growth economyEconomic condition

Fast growth economy

2

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Innovation

Maintenance

Maintenance

Standard

Standard

Actual

Actual

Time

Innovation Standard

Standard

KAIZENActual

ActualKAIZEN

Time

PATTERN

Innovation

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 TechnologyPeople oriented

KAIZENKaizen 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

Way of thinking

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Definitions of

problem

Analysis of problem

Identification of

causes

Planning 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

AT IDEAL COMPANY

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

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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

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 relationsConstant effort to improve industrial relations

Emphasis on training & education of workersEmphasis on training & education of workers

Developing informal leaders among the workersDeveloping informal leaders among the workers

“Creating a Cooperative atmosphere and

corporate culture”

“Creating a Cooperative atmosphere and

corporate culture”

Formation of Small Group Activities such as QC circlesFormation of Small Group Activities such as QC circles

Support & recognition for workers’ KAIZEN effortSupport & recognition for workers’ KAIZEN effort

Conscious effort for making the workplace a place where Workers can pursue life goals

Conscious effort for making the workplace a place where Workers can pursue life goals

Bringing social life into the workshop as much as practical

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

Training supervisor so that they can communicate better& create a more positive involvement with workers

Bringing discipline to the workshopBringing 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