The Process of Implemekaizennta

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The process of implementation of improvements

KAIZEN

Anna Wronka

The Centre for Improving Process OperationsDepartment of Logistics Faculty of Management, University of Lodz

Lodz, Poland

[email protected]

Abstract-The paper presents the assumptions of Kaizen

techniques of small improvements, implemented as a part of

Lean Management. Moreover, based on qualitative research it

describes schematically the implementation of improvement

processeswith particular emphasis onthe potential benefits and

risksgenerated by theimplementedchanges.

Key words: Lean Management, Kaizen, contin uous

impr ovement, costs, r isk

I. INTRODUCTIONToday'smarket realitiesaremore difficultfrom the pointof

view ofsuppliersof material goodsand /or services.More andmoredemanding customers,bothindividual andindustrialandat the same timean intensifyingpressure onqualityand priceof competing operators,and the economic crisis, are themajorfactors forcing continuous changes in management, theoperational management in particular, for economic operators.Among the innovative, although not new concepts aimed atimproving the broader utility (mainly in terms of quality anddelivery, while reducing costs (called QCD - Quality, Cost,Delivery), Lean Management tools and support it are worth

noticing, including, inparticular, low-cost assumptions, basedon common senseapproach toKaizen.

II. LEANMANAGEMENTUnderstanding the purpose of application of Kaizen,

requires placement this methodology in the managementphilosophy ofLeanManagement, which is a conceptorientedprimarily on eliminating waste (any waste, so-called. Muda,defined asactivitiesthat addnovalue), generated byprocessesin all business areasorganization. This system, oftenreferred toin the literatureas "slimming or leanmanagement", basedonthe paradigm of the continuous improvement, the so-calledvalue stream, enabling the production and movement of

products at optimum speed specified by the customer. Leanimplementationrequires the definition of the fivefundamental

principles, namely: the definition of the values definedby thefinal customer, identifying the value stream, defined as allactivities (adding and not adding value) required to meet theneeds of customers, ensuring smooth flow throughout thevalue-chain cycleproduction, manufacturingin the pullsystem,according to customer ordersandcontinuous improvement. Inaddition, it is recommended to reorganize the order of the

processes taking place in the enterprise, from project activities,through administrative, regulatory, organizational processes,and those related to human activities. The successful

implementation ofLeanprinciplesalso requires, perhaps aboveall, to build a particular organizational culture which allemployees of a company co-create and improve. This is anongoingprocess thatactuallyforces changes in thementality ofthe people, and determines the transition from the traditionalrole of the leaders into mentor - leaders with attitudesmotivating teams to actively engage in the processes ofcontinuousproblem solving. The amount of aspects of the

concept caused that its assumptions are increasingly being usednot only in manufacturing but also in the service sector,

particularly in the public administration (Lean Administration)and the medical industry (Lean Healthcare). The specificity ofLean processes determines the selection of certain managementmethodologies, realizing the assumptions of the concept. Theydiffer mainly in approach and level of detail of research

procedure, andproceduraltoolsuseddepending on the purposeand scope of the project (so called Lean toolbox). In theliterature, it is stressed more often that Lean bringsorganizationbenefitsonly if its implementation isbased on atriad: philosophy - the system- tools. Exemplarytools to assistrecognition ofLean areshown in Table 1.

TABLE I. EXEMPLARY TOOLS FOR IMPLEMENTING LEANMANAGEMENT PRINCIPLES

Tool Characteristics

Vizualization A way to improve communication by

illustrating issues related to the workplace, process or employees.

5S A way to visualize the working place,

assuming the care of the workplace,on the basis of: selection, systematics,

cleaning, standardization and self-

discipline

Kanban Production control method, based on

the organization of delivery of

materials, on which there is an actual

requirement. This approach

complements the Just-in-time method.SMED A tool assuming changeover time

reduction of machines andsimplification of the production

process. It is based on the division of

all ongoing operations, necessary forchangeover time to the unit number to

10 minutes, for internal and external

operations. SMED often runs in fourstages: analysis of the process of

changeover, following internal and

external transformation changeovers

and improvements.

TPM Actions improving the continuous

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maintenance of machinery, by

preventing accidents and downtime.

An indirect measure of the

effectiveness of TPM is the OEE

(Overall Equipment Efficiency) - thedegree of effective use of equipment,

measured as a percentage.

Poka-Yoke Preventing mistakes in processes andproducts, through careful design of

the production. It may take the form

of a control system or an alert system

Kaizen Continuous improvement using smallsteps, with the involvement of all

employees in the organization.

Source: own study based on: A. Stabrya, Analiza i projektowanie systemw zarzdzaniaprzedsibiorstwem, Mfiles 2010, s. 399 orazwww.lean.org.pl;www. Lean-management.pl

III. KAIZEN PHILOSOPHYKaizen (from Japanese Kai-good and Zen - change) is a

philosophy aimed at continuous improvement of processes,particularly those related to the production and management,using small, systematically implemented changes. According toMasaki Imai, the main promoter of this method, the Kaizen "isthe most attractive possibility of a permanent, continuous

improvement your own business and the realization that evensmall changes, when put together, can have a great impact onthe success of the enterprise. [...] Kaizen answers the questionhow to run a business, harmoniously combining the needs ofcustomers and continually improving the quality and efficiencyand most importantly, all still make money. Kaizen

philosophy is based on a human and technological subsystem(improvement tools and techniques) . Depending on thecomplexity and purpose, Kaizen can be oriented towardsmanagement / top management (focusing on key strategicissues, processes and systems), the team (based on collectiveactions which use statistical tools for solving problems ) and

per unit (based on the assumption that each employee is able towork better and can make a contribution to the improvement of

the organization). In practice, the implementation of Kaizenprogram is focused primarily on the employees that make upthe organization, their continuous and effectivecommunication, cooperation and commitment to theorganization, in particular through active exploration andcorrection of common sources of causes arising in the

processes of non-compliance. In addition, the possibility ofimpacting on working conditions, often leads to an increase inemployee satisfaction, improved work environment and othermeasurable effects, favoring the need for long-termimprovement.

Due to the fact that all flows occurring in the enterprise(for example, materials, services or information) involving not

only the top management, but also employees at lower levels ofthe organizational structure, effective implementation ofKaizen forces a change in the way of thinking, or even culturethroughout the facility. It is a prerequisite to achieve the

benefits, at least in terms of productivity growth, shorteningproduction time and reducing unnecessary inventories. Kaizenculture is most often understood as the totality of behaviors,

projects, attitudes and values conducive to creating andachieving ever higher levels of excellence, both in themanufacturing process and its result. Developing a pro-qualityorganizational culture conducive to adapting guidelines of

Kaizen, requires the organization to develop a climate of trust,mutual respect, self-control, the need for creative thinking, asense of responsibility and loyalty to colleagues and employers.Moreover, the integration of the business structures withKaizen implies dissemination to staff and managers the basic

principles of the implemented methods, in particular withregard to the importance of teamwork and group problemsolving, responding and eliminating anything that might result

being wasteful and a systematic and permanent improvementof the standards of their work.

As part of the transformation of the organizational cultureoutside of training, there are also undertaken other activitiesthat build internal structures which mission is to promote andsupport the described dimensions of Kaizen. An examplewould be the so called Kaizen Story, a standard, consisting ofeight stages, recording formats and Kaizen activities, mainlyused in the process of visualization and problem-solvingsituations.

Considering further benefits achieved through Kaizen thefinancial dimension of introduced improvements should benoted. Numerous case studies illustrate the benefits achievedthrough the implementation of small improvements.

IV. THE IMPLEMENTATION OF KAIZENAlthough the basic premise of Kaizen is to create simple

and transparent solutions that streamline processes and thusimprove the results, it should be emphasized that this is a long-term transformation of the organizational culture and

philosophy of comprehensive action. In principle, thetransformations made in manufacturing processes are designedto improve their effectiveness, but every change is associatedwith a potential risk, meaning the risk of failure to achieve

business objectives and implementation difficulties arisingfrom the specificity of the different phases of implementation.

Therefore, it is worth noting that Kaizen is also a potentialsource of qualitative regression process, where new solutionswill not bring tangible benefits. Among the key barriersidentified, related to the implementation of Lean Management,including Kaizen, in manufacturing companies, one shoulddistinguish the lack of competence of persons responsible forthe implementation of solutions for broadly defined Lean, poorinvolvement of top management, incompetent linking ofstrategy and company structure with those of Lean, inadequateinfrastructure, as well as active and passive resistance ofemployees to change and an unmatched organizational culture.Kaizen, though assuming slow, small changes, that build long-term stabilization of the the business market requires proper

preparation of resources, not only human, which requires

financial expenditure, which may not always be profitable.According to some authors, , Kaizen is effective mainly in theslow economic development, and in times of rapiddevelopment of new technologies, innovation and optimizationof strategies implemented by management is desirable.

The success of Kaizen, besides involvement of allemployees, including executives, has also developed a numberof measures improvements the verification of improvements

being developed. In the implementation of strategies tomaintain and improve identified through Kaizen standards, M.Imai suggests proceeding in accordance with the PDCA cycle,

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assuming planning the aim of improvements, theimplementation of the idea, its evaluation and thenstandardization and developing new procedures. This cycle isrepeated, which means that improvement is not considered ascompleted until the new status quo will be the basis for furtherimprovements.

Companies develop Kaizen procedure based on the fourstages of the Deming cycle.

During the planning stage, an idea for an improvementoccurs, which every employee can report. Most often it isassumed that this improvement can be carried out in groupsconsisting of a few people. The originator of improvements, theso called Initiator (sometimes referred to as Kaizen TeamLeader), submits the proposal to the Kaizen coordinator bydescribing the improvements in a specially prepared form ofimprovement cards. Coordinators, depending on the areascovered by the Kaizens are often leaders of areas (for examplein the field of health and safety aspects and 5S) and engineers(in the case of improvements affecting the manufacturing

processes).The coordinator, before approving submitted idea,by signing the consent form for the implementation, has toverify it. In practice, such an assessment can refer to two basicassumptions. First Kaizen cannot be corrected status quo. It hasto be improvement in workstations or ongoing processes indefined, for the organization, aspects of Kaizen. These aspectsmust be compatible with the policies and objectives of the

business enterprise and, for example, may relate to security (theelimination of a potential accident), cost of production(elimination of waste, including in particular the use andoptimization of material flow) or learning and sharing ofknowledge (actions to improve competence of workers in theframework of practical training approach (called TWImethodology, called training within Industry). Moreover,coordinators must remember that the suggested kaizen, cannot

have a negative impact on other aspects of the work andprocesses already in place.

The second step in the process of Kaizen is theimplementation of approved ideas for improvements. It isrecommended that the team responsible for the improvementcarried out the pilot implementation of the changes on a smallsample, and depending on the results, carried out theimplementation at an appropriate scale.

The next step is to evaluate the improvements. Aftercompletion of the team members complete the form in whichyou must take into account the description of the situation

before and after the implementation of the improvements, andif possible, attach a photo documentation illustrating the effects

of the implemented idea. The coordinator, analyzes theefficiency of the improvement and its impact on pre-definedaspects of Kaizen. Depending on the strength of the impact ofimprovements in various aspects, the coordinator of the teamgives them points that under the system of motivation, areexchanged for awards.

The last step is to register the improvements in the Kaizendatabase . At this stage, according to the assumptions of theDeming cycle occurs the standardization of the verifiedsolutions and their further improvement.

The presented Kaizen implementation process takes placein the so-called system of improvement, also referred to as theactivity of small working groups (Small group activities).Verification of usefulness and cost-effectiveness offered by ateam of improvements to the coordinator, who single-handedlydecides on the acceptance and use of the solution. However,such an approach may be too risky for the sensitive areas of theorganization, such as those related to health and safety. That is

why large companies prefer to comply with the so-calledemployee suggestion system, which involves the evaluation ofthe proposals by the top management or a specially appointed ,interdisciplinary team of professionals.

In addition, minimalizing the risk of ineffectiveimplementation of solutions can also consist of the system ofmeasuring the effects of the implementation . In the case ofKaizen method it is a current control primarily based on all theresults that have been reflected in the indicators ofeffectiveness. Depending on the distinguished aspects to becovered, improvements may include data on accidents,employee engagement (so called engagement survey), processefficiency, the percentage of waste production and on-time

delivery. Kaizens implemented within the Lean management,like all investments, may also be subject to calculations on thepayback period. However, traditional management accountinginstruments do not always show the actual effectiveness of the

projects. Therefore, depending on the specific system ofimprovement, it is recommended to do an individualdevelopment of a model for assessing the effectiveness of the

production, which stimulates action in line with the philosophyof Lean and is accepted by the finance department andunderstood in the production area.

Effective implementation of Kaizen requires numeroustools supporting reduction of losses, in particular for the socalled 3M - muri, mura and muda, meaning strain and

difficulties, mura - irregular, mudawaste.The synergy of tools used in Kaizen and the management

processes in the organization, most often mentioned in theliterature, is show in the form of the so called HouseKaizen/Gemba. It is a schematic, constructed analogously tothe so called House of Quality recognition of the relationshipof individual areas (levels) integrated by Kaizen.

The top of the house is formed from management processesnecessary to achieve the efficiency and performance of anorganization support the application of Kaizen. Thefoundations of the House are formed of action, involvingemployees. However, a necessary condition to ensure thatemployees perform their tasks and at the same time striving to

maintain and raise standards is continuing managementinvolvement, which should demonstrate their strong motivationand focus on Kaizen.

CONCLUSION

The Kaizen method is both an opportunity and a threat forthe modern organization, especially for enterprises. Dependingon how and to what extent consciously the implementation ofthe changes is pursued, it could be an opportunity to strengthencompetitiveness or an additional source of costs or activities

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not generating any added value and thus bringingmeasurableloss.

Figure 1. Kaizen House

Source: Wider: M. Van Assen, G. Van Den Berg, P. Pitersma, Key Management Tools. The 60+ models

every managers need to know. 2nd edition, Prentice Hall, 2010, s.54

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Management of quality, safety, costs and logistics

Managerial Profile (yield

management)

Management of people, resources, information and supplies

Standardization

5S - Seiri (selection, screening), Seiton (systematics), Seiso

(cleaning), Seiketsu (standardization), Shitsuke (discipline / self-

improvement)

Elimination of MUDA - waste

Supporting tools: Team work, Quality circle, Personal discipline,Improved morale, suggestion for improvements, Visible

management

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