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Online Student Guide

OpusWorks 2019, All Rights Reserved

Kaizen Event

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Table of Contents LEARNING OBJECTIVES ....................................................................................................................................3

INTRODUCTION ..................................................................................................................................................3 KAIZEN DEFINITIONS .................................................................................................................................................................... 3 KEYS TO A KAIZEN EVENT ........................................................................................................................................................... 3 KAIZEN EVENTS ENABLE PERFORMANCE ................................................................................................................................ 4 EMPLOYEE & COMPANY BENEFITS ............................................................................................................................................ 4 SCOPING THE KAIZEN EVENT ...................................................................................................................................................... 4 STRUCTURED APPROACH ............................................................................................................................................................. 5

PREPARATION ....................................................................................................................................................5 PREPARATION – DEFINE .............................................................................................................................................................. 5 TYPICAL KAIZEN EVENTS ............................................................................................................................................................. 6 KAIZEN EVENT TEAM.................................................................................................................................................................... 6 PREPARATION – READINESS ....................................................................................................................................................... 6 PREPARATION – COMMUNICATE ................................................................................................................................................ 7 EVENT AGENDA .............................................................................................................................................................................. 8

EVENT WEEK .......................................................................................................................................................8 EVENT WEEK – KICKOFF ............................................................................................................................................................. 8 EVENT WEEK – TRAINING ........................................................................................................................................................... 9 EVENT WEEK – EXECUTION ........................................................................................................................................................ 9 EVENT WEEK – CLOSE ............................................................................................................................................................... 10 KAIZEN SUMMARY REPORT ...................................................................................................................................................... 10

FOLLOW-UP ...................................................................................................................................................... 11 KAIZEN EVENT EXAMPLES ........................................................................................................................................................ 11

SUMMARY.......................................................................................................................................................... 12

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Learning Objectives

Upon completion of this course, student will be able to: Define Kaizen Event and discuss its purpose and application Explain how Kaizen Events can provide rapid organizational benefits and accelerate the

execution of larger initiatives

Walk you through the structured approach for running Kaizen Events in both office and manufacturing processes

Introduction

Kaizen Definitions

Kaizen is a Japanese term that means “improvement.” In the context of Lean and Six Sigma, the term Kaizen indicates a focus on continuous improvement through productivity improvement and the elimination of waste. A Kaizen Event is a highly focused improvement project that has a limited

scope and is intended to be executed very rapidly, usually within one week. Kaizen Events typically target business process issues that are barriers to the success of a specific functional area. Another common name for “Kaizen Event” is “Kaizen Blitz.” Later in this module, we will show you some specific examples of how Kaizen Events might be applied in the workplace. But first, let’s look at what it takes to implement this unique type of improvement project.

Keys to a Kaizen Event

There are four keys to a successful Kaizen Event: teamwork, waste elimination, discipline, and rapid execution.

Because teamwork is critical in a Kaizen Event, teams must be assembled correctly. The team should include several people who perform the work that is the target of the event. It should also include representatives of the “suppliers” and “customers,” or the groups who execute process steps before and after the work activity in question. All team members must be committed to participate full time for the duration of the Event, which is typically one week. To gain the most business benefit from the Kaizen Event, there needs to be intense focus on eliminating all waste from the process. The team should be encouraged to evaluate every step of the current process and every tool used; nothing should be “off-limits.”

Due to the rapid pace inherent in Kaizen Events, a high level of discipline is essential. To be successful, the team must take a structured and methodical approach to preparation, execution, and follow-up. The team should also be prepared to aggressively execute stretch goals within the stated time frame.

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Kaizen Events Enable Performance

Regular use of Kaizen Events enables continuous improvement and encourages the implementation of innovative approaches. Over time, many small, rapid improvements implemented through Kaizen Events will increase overall performance.

Employee & Company Benefits

Improved performance is not the only benefit of Kaizen Events. The company will also benefit from greater cost savings, more satisfied customers, and more motivated employees. When Kaizen teams start to take ownership of their work processes and are able to implement creative improvements, they feel more involved and empowered in the workplace. Kaizen Events have a snowball effect; when groups are recognized for their Events and the news spreads across the organization, more teams will want to contribute to the improvement efforts.

Scoping the Kaizen Event

A Value Stream Map is an important tool for visualizing and identifying waste in a process. From an analysis of the Value Stream Map, improvements can be identified which can be implemented using Kaizen events. It is important for the team to select and scope an event so it meets the improvement objectives in a short period of time. For a Kaizen Event to be successful, it is critical to define exactly what the team is to accomplish. It is equally critical to communicate the event scope so there is a clear understanding between the team and the organization regarding the parameters and expectations.

There are several elements to the scope:

The event name and process should be easily recognized

The starting and ending points will define

the event boundaries

The Process Trigger is the activity that starts the action in the first step.

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Other considerations will include restrictions or constraints.

Structured Approach

Now that you know the definition of a Kaizen Event, and you understand its purpose and benefits, let’s look at how to put this unique process into action. Successful Kaizen Events follow a very structured approach of preparation, execution, and follow-up. Preparation starts four weeks before the Event is planned and ensures the Event is properly scoped.

Often, pre-work is necessary to make certain the team has all the information and tools it needs to execute during Event Week. Event Week is an intense period when the Kaizen team plans and executes the improvements. After Event Week, follow-up activities are required to ensure the gains achieved are sustained.

Preparation

Preparation – Define

The first step of preparation is to define the project. In this step, the business opportunity (the business gap or the reason for selecting the project) is documented and agreed upon. The project scope must be achievable within the one-week timeframe to help ensure the team’s success. The Event leader and team need to be selected carefully. The leader should be someone who is well respected by those who execute the work. It is not necessary for the Event leader to be a supervisor or manager; many times the best Event leaders are those who are experienced in the work area. The team should include a mixture of people from within the work area and from upstream or downstream work areas. We will talk about team selection in more detail soon. Measureable stretch goals and targets are established as part of the preparation phase.

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Typical Kaizen Events

Many Lean techniques are well-suited for a Kaizen Event’s rapid pace and limited scope. Typical Kaizen Events include: 5S, Changeover Reduction, Office Work Flow, Value Stream Mapping, Standard Work, Office Templates and Forms, Pull Systems, Workplace Design, and Total Productive Maintenance.

Kaizen Event Team

Now let’s look more closely at the Kaizen team.

The Kaizen Event team’s first task is for leadership to select the appropriate opportunities or work areas to execute Kaizen Events. Leadership involvement is important in setting high level goals and expectations for the execution of Kaizen Events. Because Kaizen team members will be dedicated to the Event instead of their daily work duties for one full week, leadership support is critical. Lean Coaches are very important to the Kaizen Event opportunity and project selection. They have been trained in the Lean tools and techniques that may be employed during the Kaizen Event, and act as

project advisors, guiding the team through application of the Lean tools. Because Lean Coaches have experience running Kaizen Events, they can also help the Event leader keep the team on track. As mentioned earlier, the composition of the team is critical to the success of the Event. The Event leader needs to be someone who understands the work area and who is well respected by those who work in the target area. Often the Event leader is not a manager or supervisor, but rather is a person with solid experience in the functional area. The team will typically consist of seven cross-functional team members, with half coming from the target work area. The other half of the team members should be from “supplier,” “customer,” and key “support” organizations. Supplier organizations are those that perform work activities that occur before the target process, and often supply work components (information or parts) to the target process. Customer organizations are those that follow the target process. Support organizations include groups that do not directly perform work on the product or process, but provide support activities, such as material replenishment, tool and die expertise, or information systems support.

Preparation – Readiness

Once the project has been defined, the second aspect of Kaizen Event preparation is to get the target area ready for Event Week. The primary goal is to ensure that the Kaizen team will have all the information and supplies it needs to quickly engage in the project.

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Typically, the Lean Coach and the Event leader will be involved in these activities, with limited assistance from Kaizen team members as needed. They must gather all necessary documentation of the current process, such as process maps, workflow information, and organizational charts. Any current process data that may be needed during Event Week is also collected at this time. Finally, they must ensure that all equipment and resources needed for Event Week will be available, including cleaning supplies, display boards, labels, special equipment, cameras, stopwatches, etc. During this preparation phase, the Event leader works with leadership of the target area to create a plan for continuing daily work during Event Week and to ensure all enabling pre-work and preparation is scheduled and completed prior to the start of Event Week.

Preparation – Communicate

The final component of the preparation phase is to communicate the Event. All participants are notified of the Event dates; meeting rooms are scheduled; and arrangements are made for special visitors, food, and any training the team will need during the Event. It is good practice to invite key members of leadership to kick off the event and to attend the daily and final report out sessions. It is important to communicate the Event details to all stakeholders, including those working in and around the target area, and to supporting organizations. To make certain all participants know why the Event is taking place, an Event Agenda is provided, including purpose, Kaizen Event Overview, and logistics. Once the project has been defined, the team has been assembled, the target area has been readied, and the agenda and expectations have been communicated, preparation for Event Week is complete!

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Event Agenda

Here is a sample Event Agenda. It is important to note the agenda must be flexible, and the event may last from 1 to 5 days.

Event Week

Event Week – Kickoff

The Kaizen Event Kickoff is important to set the tone for the Event and to show leadership support of the team’s efforts. Teams can be encouraged when a number of key leaders attend the kickoff and report out meetings. Arrange for the most senior leader to kick off the Event, and discuss how Kaizen Events will contribute to company goals. Remember to introduce the team members to each other! It is common in large companies that the cross-

functional team members may not know each other, especially if the Kaizen team is composed of members that are from different working locations.

The kickoff is the Event leader’s opportunity to ensure that all team members clearly understand the purpose and goals of the Event. Event leaders should also reinforce with the team members that the week is a full time commitment. It may help to remind them of the plan for continuing daily work that was developed within their work areas.

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Event Week – Training

After the kickoff meeting, the team continues with training that’s focused on the Lean tools and techniques to be used during the Kaizen Event.

The training should be delivered by a qualified instructor, possibly the Lean Coach for the Event. Because the Lean Coach will be involved with the team throughout Event Week, the initial training is kept relatively short, typically within two hours. This “just in time training” should give the team members an overview of the Lean tools they will be using and a brief roadmap of the activities for the week, and should prepare them to start executing the project right away.

Event Week – Execution

The first step of Kaizen Event execution is characterizing the current state of the target work area or work process. The team may videotape current work practices, draw a Current State Value Stream Map, diagram a work area, create a spaghetti diagram, or develop a detailed process map. Based on the data and workplace observation, the team creates a characterization of the current state of performance. Regardless of what tools are used to observe current state, the team should focus on exposing as much waste in the current process as possible.

Next, the team spends time brainstorming to develop a hypothesis for the achievable future state. In identifying opportunities for improvement, the team considers the goals and objectives developed during the planning phase and focuses on changes that can be implemented within the week. The Kaizen Team leader then verifies these opportunities with the key stakeholders, making adjustments to expectations and plans as needed.

Remember that the purpose of a Kaizen Event is to execute and implement improvements within one week with a “Bias for Action”.

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This requires a bias for action and a “Just Do It!” attitude. The Lean Coach and Kaizen team leader will help guide the team through this planning phase and safeguard against “over-engineering” or developing a solution that is too complex to implement quickly. This may require constant reminders that the best solutions are simple and easily implemented. The most elegant solution will not be effective if it cannot be implemented and sustained. Kaizen promotes a culture of continuous improvement by enabling the achievement of quick, sustainable gains. To continually eliminate waste and improve productivity, the work process is revisited after the Event.

Event Week – Close

The close of a Kaizen Event is just as important as the kickoff. Upon implementation of the improvements, a control plan is put in place to sustain gains.

Control plans do not have to be complex, and can come in many forms, such as preventive maintenance schedules, daily workplace housekeeping duties, or visual management boards that show current execution metrics. A Kaizen Event Summary Sheet is completed at this time as well. The Kaizen Event may close with a few outstanding items that could not be completed within the week.

These activities need to be tracked and closed with a 30-day action list that the team develops and commits to. The team should prepare a final report-out to leadership and key stakeholders. Just as with the kickoff, plan for senior leaders to attend the final report-out and help recognize the team. Celebrate team participation and achievements with a team lunch, company shirts, cake, or other awards.

Kaizen Summary Report

This is an example of a Kaizen Event Summary Sheet. Click on each topic to see an example of a completed summary report.

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Follow-Up

After the Kaizen Event is over, it is critical to follow-up to ensure the improvements implemented are effective and maintained and to complete all the items on the 30 day action plan. These final steps are necessary to complete the Event.

The Kaizen team leader tallies the final performance benefits and communicates the effectiveness of the Kaizen Event to the team, stakeholders, and leadership. Communicating the benefits gained through a Kaizen Event is the first step in repeating the process in more work areas. As the news spreads, other teams and work groups will become interested in improving their processes using Kaizen Events. It is also typical for Kaizen teams working with the new process to develop even more ideas for further improvement. This “buzz” is essential to developing a culture of continuous improvement within an organization.

Kaizen Event Examples

Now that you understand the structured approach of a Kaizen Event, let’s look at some real world examples. Example 1: A sourcing organization had a lengthy, non-standard, and error prone RFQ (Request for Quote) writing process. A one week Kaizen Event with global sourcing personnel simplified the RFQ process and created a standardized RFQ template. The Event resulted in a standardized process flow, a 50% reduction in the number of pages in the average RFQ, and a 30% reduction in the number of required RFQ updates and error corrections.

Example 2: A chemical blending facility was experiencing lengthy changeover between products, resulting in large production batch sizes. A team consisting of production operators and engineers executed a four day changeover reduction Kaizen Event to assess the changeover practices and improve work flow. The resulting changeover process resulted in: more parallel work activities; changeover time reduced from three days to one day; and a

shift in the fulfillment process from “make to stock” to “make to order,” resulting in an inventory reduction of 7 million dollars. Example 3: A tool room in an organization’s tooling department required constant shuttling of dies to and from an external warehouse due to lack of storage space on site. This resulted in a one day lead time to deliver tools to the machines. Many times, delivery needed to be manually expedited when changes in the production schedule occurred. A 5S Kaizen Event was executed by a team of tool room personnel, production operators, and facilities team members. Their solution included keeping high usage dies in the tool room, moving low usage dies to the external warehouse, and removing obsolete dies completely. The Event had the following results: Most dies available within one hour; Shuttle runs to the external warehouse reduced to one per week; and a more organized, neater, and safer tool room.

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Example 4: A company whose products require custom quoting included an approval process that took two weeks to complete. A Kaizen Event was executed to analyze the approval process and the necessity of each approver. The solution included a reduction in the number of required approvals and the creation of a “virtual workplace,” where the

estimator and product manager approved quotes twice weekly during regularly scheduled standing meetings. As a result, the lead time for a custom quotation was reduced from two weeks to three days, and waste in the form of unnecessary approvals was eliminated.

Summary

As you’ve seen in the examples just presented, Kaizen Events are a powerful way to execute improvements quickly. Approximately nine weeks are required to adequately plan, perform, and close out an Event. Kaizen Events create “buzz” within an organization, and therefore are effective tools to gain buy-in, participation, and enthusiasm for performance improvements throughout a company. Any work environment can benefit greatly from using Kaizen Events to improve work areas, processes, tools, and techniques.