KAIZEN 1 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute KAIZEN ® Institute Sweden Congress October 2009 Masaaki

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KAIZEN 1 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute KAIZEN Institute KAIZEN Institute Copyright 1985-2006 KAIZEN Institute, Ltd. All rights reserved. KAIZEN and GEMBAKAIZEN are registered trademarks of KAIZEN Institute, Ltd. Copyright 1985-2006 KAIZEN Institute, Ltd. All rights reserved. KAIZEN and GEMBAKAIZEN are registered trademarks of KAIZEN Institute, Ltd. Slide 2 KAIZEN 2 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute The three KAIZEN Books Gemba KAIZEN How to do KAIZEN KAIZEN What is KAIZEN spirit? KAIZEN FSL KAIZEN as strategy Slide 3 KAIZEN 3 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute KAIZEN (Original Definition) KAI ZEN Change Good (for the better) Good (for the better) KAIZEN = Continual Improvement Slide 4 KAIZEN 4 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute - Everyday improvement - Everybody improvement - Everywhere improvement - From small incremental improvement to dramatic strategic improvement KAIZEN (new Definition) Slide 5 KAIZEN 5 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute What is Management? Top- management Middle management Employees Improvement Maintenance Slide 6 KAIZEN 6 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute What is Management? Top- management Middle management Maintenance Employees Innovation Supervisors KAIZEN Slide 7 KAIZEN 7 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute Organisation for KAIZEN Customer Expectations Customer Satisfaction Gemba Organization to support Slide 8 KAIZEN 8 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute The 5 Gemba Principles 1. When an abnormality occurs, go to Gemba first 2. Check with Gembutsu (machine, material, failures, rejects, unsafe conditions etc.) 3. Take temporary countermeasures on the spot 4. Remove root cause 5. Standardize to prevent trouble Slide 9 KAIZEN 9 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute House of Gemba Management Profit management Workers operations InformationEquipment Products & materials Q C D Quality & safety management Cost management Logistic management Standardization 5S (Good housekeeping) Team-work self-discipline Morale enhancement QC circles Suggestions Muda Elimination Slide 10 KAIZEN 10 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute 7 Types of Muda 1. Muda of over-production 2. Muda of waiting 3. Muda of transport 4. Muda of processing 5. Muda of inventory 6. Muda of motion 7. Muda of repair/rejects Slide 11 KAIZEN 11 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute Gemba Deteriorates Everything in Gemba deteriorates if left alone. That is the reason why Gemba needs to be sustained and improved. Slide 12 KAIZEN 12 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute Five Ss Practical means to realize a shortest flow and synchronization between processes. If 5Ss are not contributing to the above objectives, it benefits are not fully gained. Slide 13 KAIZEN 13 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute Slide 14 KAIZEN 14 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute Slide 15 KAIZEN 15 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute Disneyland Behavioral standards Make Eye contact and Smile Greet and welcome Each and Every Guests Seek out Guest Contact Provide Immediate Service Recovery Display appropriate Body Language Preserve the Magical Guest Experience Thank Each and Every Guest Slide 16 KAIZEN 16 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute Pillars of World Class Management Total Quality Management Total Productive Maintenance Just In Time TQMTFMTPM Total Service Management TSM Quality cost LossesFlowCustomer satisfaction Slide 17 KAIZEN 17 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute World class KAIZEN Road Map to world class (1) TQM TPM JIT Quality of Product, Service, Systems and Work Quality of Equipment Cost and delivery Elimination of all types of MUDA Cost and delivery Elimination of all types of MUDA Slide 18 KAIZEN 18 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute World class KAIZEN Road Map to world class (2) TQM TPM JIT Phase 0 1 2 3 Integration of JIT and IT Electronic KANBAN Order entry system / Producing as many as need in the same sequence Upstream Managem./ involve R&D and engineering Leveling / Adding flexibility to Production Scheduling Pull system / Allowing no advance Production TAKT Time / Producing only what customers ordered Flow Production / Lead Time Reduction (MUDA of Conveyance, inventory, excess manpower) Autonomous maintenance 5S Supplier management / Supplier involvement in JIT / KAIZEN Slide 19 KAIZEN 19 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute World class KAIZEN Road Map to world class (3) TQM TPM JIT Integration of JIT and IT Electronic KANBAN Order entry system - Quick delivery - Menu - Large orders Upstream Managem./ involve R&D and engineering Leveling - Small lot production - Lead time prod. - Layout design Pull system - Kanban - Mitsusumashi - Store - Reserved seat TAKT Time Production - Standard work sheet - Standard work combination sheet Flow Production - One Piece Flow - Low Cost Autom. - U-shaped cell, AGV - Jidohka - Poka Yoke - Dedicated line - Set up KAIZEN (SMED) Autonomous maintenance - Cleaning - PLS - Cleaning/Checking Standards, Inspection - Auton. Process-Inspec. - Standardization - Complete Self-management 5S - Seiri - Seiton - Seiso - Seiketsu - Shitsuke Supplier management - Extending JIT / KAIZEN Slide 20 KAIZEN 20 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute Batch Production vs. JIT Production (1) BatchJIT No takt timeWork to takt time Large inventory Small inventory (eventually one-piece) Isolated islandsFlow production Push schedulingPull scheduling No-standard inventoryStandard inventory Larger, faster and special equipment Even paced equipment (Takt time synchronised) Slide 21 KAIZEN 21 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute Batch Production vs. JIT Production (2) BatchJIT Less frequent set-up changesMore frequent set-up changes One person per machineOne person for many machines Single skill operatorMultiple skill operator Sitting workStanding and walking work Advance production allowedAdvance production not allowed Quality control grouping, Sampling inspection All number inspection Slide 22 KAIZEN 22 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute When forecast is discarded We have a more efficient operation and a cost structure that is roughly half that of other companies in our industry We dont rely on forecasts Michael Dell Slide 23 KAIZEN 23 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute Two types of production systems Traditional Mass Production Starts from forecast Starts from customer orders Lean Production Builds inventories Does not allow inventories ProductionInventoryCustomer ProductionCustomer Forecast Slide 24 KAIZEN 24 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute - The learning organization - Respect for people - Education & training - Challenging spirit - Challenging management (Oh, NO! - System) - KAIZEN, Toyotas DNA The Toyota Way 1 Slide 25 KAIZEN 25 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute The Toyota Way 2 - Team work - Quality First - Long term perspective - Genchi (Gemba) Gembutsu - Do it right away - Muda elimination Slide 26 KAIZEN 26 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute Advantages of shortening the flow Improve quality Shorten lead time and realize prompt delivery Reduce inventory and stagnation Use minimum resources Simplify management (Less managerial and administrative intervention) Realize minimum cost and maximum profit Slide 27 KAIZEN 27 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute When the Flow is shortened Quality automatically improves Delivery automatically improves Cost automatically goes down Big Profit! and brings Slide 28 KAIZEN 28 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute Conditions for minimizing the flow Standardization 5S Visual Management MUDA Elimination Reorganizing Management Structure Building KAIZEN Culture Slide 29 KAIZEN 29 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute Christopher Columbus School of Management When he set out, he didnt know where he was going When he got there, he didnt know where he was When he returned, he didnt know where he had been He did it all with borrowed capital Slide 30 KAIZEN 30 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute Man & Ape Slide 31 KAIZEN 31 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute The three Flows Material Flow Cash Flow Information Flow $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$ Slide 32 KAIZEN 32 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute 3 Conditions to Create a Pull System Flow Synchronization Leveling Slide 33 KAIZEN 33 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute Who manages the Flow? Let the flow manage the processes, and not let management manage the flow. (Taiichi Ohno) Slide 34 KAIZEN 34 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute FSL Checklist Is tact time employed as a basis of production? Is standardized work employed? Are all processes physically and logistically connected ? Is one-piece flow practiced? What is the current level of Five S? What is your current status? Slide 35 KAIZEN 35 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute The FSL Checklist Logistics People Quality Equipment Management OEE Improvement Qualification Processes Leadership Performance Q1 Stabilized Value Stream Slide 36 KAIZEN 36 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute Examples of logistic checkpoints Logistic checkpoints Production control board Five S Visual management One piece flow Standardization Three logistic principles Standard work Elimination of Muda. Muri and Mura Tact time No isolated islands No conveyers Kanban Separation between man and machine Slide 37 KAIZEN 37 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute Tools & problems Tools come first and problems second? or Problems come first and tools second? Slide 38 KAIZEN 38 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute LEARNING BY DOING Slide 39 KAIZEN 39 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute Common Misconceptions by Management (1) Proprietary technology vs managerial Technology Set policy and results will follow Train employees and Gemba improves Rely on sophisticated tools instead of common sense Believes Gemba will ask What is in it for me? Slide 40 KAIZEN 40 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute Efficiency is industrial engineers job Cost cutting, not cost management KAIZEN without focus and targets Do not go to gemba Quality is quality managers job Common Misconceptions by Management (2) Slide 41 KAIZEN 41 KAIZEN and GEMBAKAIZEN are the trademarks of KAIZEN Institute The West versus Japan Kaizen Innovation The West Japan Innovation versus Kaizen