continuous Process Improvement

KAIZEN MANAGEMENT SYSTEM1What is Kaizen Management System ? KMS is... ... a system of continuous improvement in quality, technology, processes, company culture, productivity, safety and leadership. Toyota company

2What is Kaizen Management System ?Kaizen is a Japanese philosophy that focuses on continuous improvement throughout all aspects of life. When applied to the workplace,as a Kaizen Management System Kaizen activities continually improve all functions of a business, from manufacturing to management.

By improving standardized activities and processes, Kaizen aims to eliminate waste.3TranslationIn Japanese this is pronounced "kaizen".

"kai" means "change" or "the action to correct".

"zen" means "good".

The word Kaizen means "continuous improvement". 4HistoryKaizen was first implemented in several Japanese businesses during the country's recovery after World War II, including Toyota, and has since spread out to businesses throughout the world. This method became famous by the book of Masaaki Imai Kaizen: The Key to Japan's Competitive Success.

5Kaizen as a reason of Japanese businesses successIn business Kaizen encompasses many of the components of Japanese businesses that have been seen as a part of their success.

Quality circles, automation, waste categories, suggestion systems, just-in-time delivery, Kanban and 5S are all included within the Kaizen system of running a business.6The ProcessThe quick and easy kaizen process works as follows: 1. The employee identifies a problem, waste, or an opportunity for improvement and writes it down. 2. The employee develops an improvement idea and discusses it with his or her supervisor. 3. The supervisor reviews the idea within 24 hours and encourages immediate action. 4. The employee implements the idea. If a larger improvement idea is approved, the employee should take leadership to implement the idea. 5. The idea is written up on a simple form in less than three minutes. 6. Supervisor posts the form to share with and stimulate others and recognizes the accomplishment. 7 5S

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Waste Categories and 9 Wastes To Be Eliminated

1. Work-in-process. Stocking items not immediately needed 2. Quality. Producing defective products. 3. Facilities. Having idle machinery and breakdowns, taking too long for setup. 4. Expenses. Overinvesting for required output. 5. Indirect labor. Excess personnel due to bad indirect labor system. 6. Talent. Employing people for jobs that can be mechanized or assigned to less skilled people.7. Motion. Not working according to the best work standards.8. Product Design. Producing products with more functions than necessary.9. New-product run-up. Making a slow start in stabilizing the production of a new product. 9Three Key Characteristics1.Permanent method changes. Change the method. Once the change is made, you cant go back to the old way of doing things. 2.Continuous flow of small ideas. The smaller ideas, the better. Kaizen is small ideas.3.Immediate local implementation. Be realistic. Kaizen is done within realist or practical constraints. 10Kaizen Time

In some Canon plants, the foremen are told to set aside the half-hour as Kaizen Time time to do nothing but thinking improvement in the workshop. The foremen use this period to identify problems and work on Kaizen programs. Factories are advised not to hold meetings during this 30-minute period, and foremen should not even answer the telephone then. 11The 3 Evils of Meetings.

12Benefits Kaizen Management Sistem empowers employees, enriches the work experience and brings out the best in every person. Serves as a barometer of leadership. Kaizen helps eliminate or reduce wastes and improves quality, safety, cost structures, delivery, environments, product and customer service. 13ReengineeringBusiness process re-engineeringis abusiness management strategy, originally pioneered in the early 1990s, focusing on the analysis and design of workflows and processes within an organization. BPR aimed to helporganizationsfundamentally rethink how they do their work in order to dramatically improvecustomer service, cutoperational costs, and become world-classcompetitors.BPR seeks to help companies radically restructure their organizations by focusing on the ground-up design of their business processes. ReengineeringAccording to Davenport (1990) a business process is a set of logically related tasks performed to achieve a defined business outcome.

Re-engineering emphasized aholisticfocus on business objectives and how processes related to them, encouraging full-scale recreation of processes rather than iterative optimization of subprocesses.

JIT (JUST IN TIME)Just in time(JIT) is a production strategy that strives to improve a businessreturn on investmentby reducing in processinventoryand associatedcarrying costs. To meet JIT objectives, the process relies on signals orKanbanbetween different points, which are involved in the process, which tell production when to make the next part. Kanban are usually 'tickets' but can be simple visual signals, such as the presence or absence of a part on a shelf. Implemented correctly, JIT focuses on continuous improvement and can improve a manufacturing organization'sreturn on investment, quality, and efficiency. To achieve continuous improvement key areas of focus could be flow, employee involvement and quality.

Just-in-time?Just-in-time is an easy concept to understand.If you think about someone's journey to work, they could leave the house just-in-time to cycle to the train station, just-in-time to catch their train, which would get them to their place of work just-in-time, allowing them to be at their desk just-in-time to start work. Think about your journey here today. Could this be applied?There is no problem with this concept; however, achieving it would be rather more complex and so too is applying this concept in engineering manufacture.What is just-in-time?In engineering, using the just-in-time theory would allow the components that are needed to produce a product to be delivered to the worker, just-in-time.The products can then be made available for the customers just-in-time.This process allows for all types of stock, including materials and finished products, to be eliminated.Implementing a just-in-time structure can mean a company is adopting a lean production system.Why use just-in-time?There are several aspects in engineering processes that are often deemed as wasteful, which can be eliminated using a just-in-time approach. These include:Time spent waiting for example, when a worker is waiting for items to be delivered to them.Over production waste from producing more than is needed.Inventory waste arising from keeping lots of stock.When is JIT a suitable system to use?JIT is a suitable production system when: The engineering manufacturer has a standard product that is steadily produced in practical amounts.The product is of high value.The workforce producing the product is a disciplined one.Flexible working practices are maintained.Machinery does not demand lengthy set up times.Quality can be guaranteed through either a cost penalty for defects or good working practices.

So, what are the main advantages of using a JIT system?Products are of a better standard.Less waste and, in turn, less rework. Set up times are reduced.Production flow is improved.Less stock.Overall savings.Efficiency is increased.Relations with suppliers are enhanced.Plus many moreKanban SystemOne important determinant of the success of production scheduling based on demand "pushing" is the ability of thedemand-forecastto receive such a "push".Kanban, by contrast, is part of an approach where the "pull" comes from the demand. The supply or production is determined according to the actual demand of the customers. In contexts where supply time is lengthy and demand is difficult to forecast, often, the best one can do is to respond quickly to observed demand. KANBAN SYSTEMThis situation is exactly what a kanban system accomplishes, in that it is used as a demand signal that immediately travels through the supply chain.This ensures that intermediate stocks held in the supply chain are better managed, and are usually smaller. Where the supply response is not quick enough to meet actual demand fluctuations, thereby causing significant lost sales, stock building may be deemed more appropriate, and is achieved by placing more kanban in the system.

Kanban SystemSupplying ProcessCustomer ProcessproductProduction CardFinished Goods StoreWithdrawal Cardproduct24This example supports what we have just stated. The customer process, whether it is an internal or external customer, requires us to provide them with our product. This signal to move product to the customer is accomplished through a Withdrawal Kanban. Withdrawal simply means that we are transferring our product to the customer based on their request. There are different types of Withdrawal Kanbans, however, they serve the same basic function. That function is to move product. This product is pulled by the customer from a store of finished goods. The function of the Withdrawal Kanban is to move product to the customer from the store. The Withdrawal Kanban serves no other function than to move material. When product is removed from the store by the use of Withdrawal Kanban, the Production Kanban already in the container at the store, is sent back to the supplying process to tell them it is time to replace what has been moved to the customer. Without a Production Kanban, the supplying process can not make material, which prevents the overproduction of parts.