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Kaizen is a restless state of constant questioning, re-appraisal and incremental improvements, however
tiny. One of the principles used in Kaizen is “1% improvement“ - the idea of looking for and acting on tiny
improvement possibilities- every day.
KAIZEN> Introduction
In a work environment Kaizen is understood as gradual, orderly and continuous improvement involving minimal
investment.
Kaizen is a restless state of constant questioning, re-appraisal and incremental improvements, however tiny. One of the
principles used in Kaizen is “1% improvement” - the idea of looking for and acting on tiny improvement possibilities- every
day.
Maintenance, innovation and kaizen are the three functions that should occur simultaneously in any organisation.
Maintenance refers to the smooth functioning of the current state, setting up procedures and implementing standards.
Usually, lower level personnel are responsible for maintenance.
Innovations are breakthrough activities such as introducing new technologies, new machines and equipment, or R&D
breakthroughs.
Kaizen is an intermittent function involving small steps but with continuous betterment. Lower/middle management and
workers with encouragement and direction from the top management should implement it.
The History:
The history of Kaizen dates back to the 1950s when Toyota decided to introduce quality checks within its processes. Quality
was inspected at every stage of the production process instead of checking for defects in the finished product. The
deviations identified were rectified in the process stage itself. This led to making continuous improvement in the small
details of a process, which later came to be known as Kaizen. Taiichi Ohno the man behind the Toyota Production System
envisioned this concept.
The Kaizen philosophy is one of the drivers behind the Japanese quality. Throughout the later half of the last century the
Japanese applied Kaizen principles in their workplace. They developed better processes and innovative products and
became leaders in the industrial world.
Up until the 80’s the rest of the world was left guessing about the real reason behind the Japanese success. It was a book
titled, ‘Kaizen-The key to Japanese Competitive Success’ written by a Japanese named Maasaki Imai that introduced
Kaizen to the rest of the world. Soon top-notch American and European companies like Ford, AT&T, Siemens, Phillips and
General Motors began applying Kaizen.
• Work.
• Working environment.
• Process.
• Machine capability i (minimum down time).
• Production aids (jigs, fixtures, tools etc.).
• Quality.
• Customer service and customer relations.
• New products (ideas).
• HUMAN individual capabilities.
Japanese management believe that managers should spend half their time in making improvements and eliminating waste.
Management – oriented Kaizen should result in:
Gemba is the place where one can observe the nuts and bolts of the production process. Hence, the manager should make
it a point to visit the Gemba instead of trying to solve a problem from his desk.
b. Get hands on feel of the Gembutsu:
In Japanese “Gembutsu “ is the specific location where the problem occurs. For example, if the problem is with a particular
machine then the machine becomes the Gembutsu. If the problem is in billing then the billing counter becomes the
Gembutsu.
The manager should personally test and observe the Gembutsu to understand the problem better. He will then be in a
position to suggest and approve better solutions.
c. Take interim measures immediately:
To find an effective solution for any problem, the root cause for the problem has to be identified. This could be time
consuming. Stopping a machine from running until the root cause is identified may prove costly. Therefore, temporary
measures should be taken to tide over the present need. Meanwhile, detailed investigation and analysis should continue.
d. Get to the root of the problem:
To prevent recurrence of the problem the root cause has to be identified and addressed. Various methods such as FMEA
analysis or the 5 Whys technique can help identify the root cause of the problem.
e. Standardise the process:
Once the root of the problem is identified, and a solution developed, it should be standardised. The solution should be
documented and communicated to other personnel likely to face a similar problem. This helps in saving time and improving
productivity.
Continue the tour:
Everyday Improvement
Techniques and Methods > Everyday Improvement
b) Seiton (Set in order): Once the workplace has been freed of unnecessary items,
the next step is to set in order. This involves creating appropriate storage space for
items needed around the workplace. They should be placed such that they can be
quickly identified and accessed.
c) Seiso (Shine): Shine means cleaning the workplace till it is spic and span. A neat
workspace has two advantages. One it helps generate a sense of pride in the
workmen. Second it helps easily identify indications of malfunction in equipment
such as leaks and loose screws among others.
Standardisation:
Standard work practices are the best way to ensure consistent quality performance.
Standards are the simplest, safest and most effective way to perform a work. Kaizen
involves developing and maintaining standards within the organisation.
Organisations are often on the lookout for that one -time break through for
improving performance. They are thus constantly in search of the latest technology
or the newest innovation. Such measures help in improving performance. However,
they normally involve larger investments. Kaizen implementation applying the
principles of housekeeping, Muda elimination and Standardisation are effective,
simple and involve minimal investment.
Tools > Kaizen Tools
Kaizen is one of the most popular approaches for continuous improvement. During
its implementation Kaizen practitioners use various tools, depending on the area of
application.
The SMED technique is by far the best method for achieving really significant
reductions in set-up times. Machine setters and operators can easily understand
and apply it themselves, after just a few hours of instruction.
The SMED system is a simple but often misleading term as it can be applied to
processes other than machine tools that use a die. The focus is on reducing non-
value adding set-up time like changing tools or die, clamping and unclamping work
and other such non-productive activities. This concept can be of great value in all
industries. Set-up and changeover times are broken down into the simple elements
and each element is analysed to eliminate, externalise and simplify.
A set-up will normally consist of a number of separate tasks, some of which can only
be carried out when the machine or process is stopped. Others could be carried out
when the machine or process is in operation.
Shingo called the former ‘internal activities’ and the later ‘external activities’.
The first stage that Shingo developed in 1950 enabled him to reduce the average
time for changing set-up on large steel presses from four hours to less than ninety
minutes.
The second and third stages, introduced in 1969, led to reducing the same to less
than ten minutes.
Since Shingo developed his ideas mainly on steel presses and plastic moulding and
extrusion machinery, he called the technique ‘Single Minute Exchange of Dies’
(‘single minute’ meaning less than double figures, i.e. less than ten minutes).
Stage1: Identify internal and external activities; arrange for external activities to be
carried out while the machine is working on another batch, instead of during the
set-up time.
It wasn’t until the 1980s that the Western world started applying SMED. Even today
only a few manufacturers have realized the tremendous benefits of the process.
Many companies assume that their processes are different and hence do not
consider SMED principles. According to Dr. Shingo, ‘knowing the process we are
associated with implies understanding why we do it. If we know that, changing how
we do it is simple’.
Reducing set up time till it is economic to manufacture in small batches is a key aim
of the SMED technique.
Thus, a great deal of attention should be paid on the reliability of production lines
and their effective functioning. Although most manufacturing operations are
automated, maintenance activities depend profoundly on human inputs.
The world demands a wide range of products especially in the auto, electronics,
consumer durables, and computer industry that are custom built and delivered
quickly. An organisation that is able to meet as well as stimulate such demand will
get a head start that competitors will struggle to catch up with.
John Costanza’s Demand Flow Technology (DFT) concept does just that.
DFT eliminates schedules, forecasts, and finished goods inventory. It uses Raw-In-
Progress inventory (RIP) that can be used flexibly to customise the final product.
The products are made to order and delivered with no stopgap in between.
With the need for future business to become highly responsive to the varying
demands of customers, Costanza felt the existing systems of production would not
suffice. He decided to develop a production system that would enable
manufacturing systems to quickly respond to changing customer demand.
A car manufacturing plant needs to build eight cars in a day. The work time
available in a day is 8 hours, implying the plant will have to produce one car every
hour. The normal line production system takes 32 hours to build a car. Breaking the
32 hours of work into one-hour slots and assigning each piece to a worker and
machine can achieve this target. What if some pieces of work need more than an
hour while others less than that? The solution is to reallocate workers who complete
their tasks earlier, to other tasks in the plant. This will also ensure that work in
process inventory for the less time consuming tasks is kept under control.
The production cells in DFT are designed to handle a wide range of products,
instead of a single or narrow line. The work to be done for making a particular
product is first broken into Sequence Of Events (SOE) i.e. a defined number and
sequence of operations at a given level of quality. While designing SOE, the non-
value adding work is kept at the minimum. The best mix of products that can be
produced is determined depending on the production cell. To provide flexibility, DFT
incorporates tools to reallocate work, change levels of inventory, and add resources
depending on demand variation. The daily product mix and volume are closely tied
up to the variations in demand.
Due to this in built flexibility, DFT is better able to handle seasonal and unforeseen
fluctuations in demand.
In DFT, set up and changeover come under non-value adding operations and hence
should be kept at a minimum through continuous improvements. This apart from
the fact that DFT cells are designed to accommodate the most likely but broad
product families makes the tooling and fixture aspects flexible enough to provide
optimal set up and changeover times.
DFT requires, and hence trains personnel in at least three operations of the flow
line. Each of the cell personnel should know the operations of the one before and
one after their own. This means that even if every alternate employee is taken out
from the flow line creating holes, the production will continue though at a slower
rate. This provides the plant excellent flexibility in labour management.
In times of low demand, some employees can be taken out from the flow line. Their
services can be utilised in other areas, like developing and modifying SOEs,
preparing related operation sheets, training, maintenance and so on.
The flow line gets flexed at different locations to adjust the daily variation in
demand. The focus of DFT is less on individual efficiency and more on team
productivity based on proper staff management and utilisation of resources.
In DFT, operation sheets are prepared, based on the sequence of events for easy
reference. Written instructions are kept to a minimum. The operation sheets give
graphical and colour coded instructions regarding work to be done and quality
levels to be maintained. These are then placed at every workstation for ready
reference.
The instructions also include checking quality of the work done at the previous
operation before starting an operation. A similar check of the quality is done on the
work completed before forwarding the work piece for the next operation.
Thus DFT is a technique that combines the best features of lean and flexibility in
manufacturing.
Complying with changing customer order pattern requires an accurate and precise
manufacturing system. An efficient manufacturing system is one that absorbs lesser
lead times (from order to delivery).
The “Kanban Pull” System enables the production line to be altered on the basis of
signals received at the end of the supply chain. Thereby, it assists replenishment of
finished products, components and raw materials.
This concept was first initiated at the Toyota Automobile Corporation. Hence, it is
also referred to as the Toyota Production System.
The Kanban System uses a specifically sized container that cycles back and forth
between workstations. Each Kanban card set between departments authorises
material to be pulled into the previous department for processing and delivery to
the next department. These cards are used to control work-in-progress (WIP) and
inventory flows.
A Kanban system allows a company to use Just-In-Time (JIT) production and ordering
systems, which in turn minimise their inventories while still satisfying customer
demands.
Two Kanban cards are utilised in the pull system. These are:
a) Seiri (Sort): This term suggests that all unnecessary items at the workplace
need to be sorted out. This provides sufficient free space. Some things that
can be sorted out are damaged tools, surplus raw material and other items
not needed in the normal day-to-day work.
b) Seiton (Set in order): Once the workplace has been freed of unnecessary
items, the next step is to set in order. This involves creating appropriate
storage space for items needed around the workplace. They should be placed
such that they can be quickly identified and accessed.
c) Seiso (Shine): Shine means cleaning the workplace till it is spic and span. A
neat workspace has two advantages. One, it helps generate a sense of pride
in the workmen. Second, it helps easy identification of malfunctions in
equipment such as leaks and loose screws among others.
Mistakes happen in organisations for many reasons, but almost all of them can be
prevented. This though requires effort to identify when problems happen, define
root causes, and then take the proper corrective actions. The objective is to prevent,
or at least, detect and weed out defects, as early as possible in the process. The use
of simple Poka-Yoke mechanisms and other safeguards can prevent mistakes from
becoming catastrophic events.
Prevention-Based Poka-Yokes:
Prevention-based mechanisms sense an abnormality that is about to happen, and
then signal the occurrence or halt processing, depending on the severity, frequency
or downstream consequences. There are two approaches for prevention-based Poka-
Yokes:
• Control Method: This method senses a problem and stops a line or process, so
that corrective action can take place immediately, thus avoiding serial defect
generation. An example of this is an assembly operation wherein, if one of
the components is found to be missing before the actual assembly step takes
place, the process shuts down automatically. Another example is an
incomplete sales order, which cannot be released for production until a true
manufacturability configuration is defined.
• Fixed Value Method: This method is used in operations, where a set of steps is
sequentially performed. The fixed value method employs automatic counters
or optical devices and controls the number of moves, rate and length of
movement besides other critical operating parameters. In this case,
mechanisms are usually built into progressive stamping, welding, Systems
Manufacturing Technology (SMT), and automatic insertion equipment.
Sometimes this is referred to as odd part out method. Here parts left over
after assembly signal a defect. Fixed value also includes critical condition
detection (pressure, temperature, current, etc.) through electronic monitoring
devices.
• Motion Step Method: This method ensures that a process or operator does not
mistakenly perform a step that is not part of the normal process. An example
of this is colour coding of electronic components on drawings and totes to
prevent using mixed or incorrect parts. Another example is a visual to assist
customer service representatives, in providing the right literature sets for
various products.
The Poka-Yoke philosophy requires a strong foundation in TQM. However, first,
organisations must learn to be customer focused.
Second, organisations must promote quality at the source, and ensure proper
investment in their people. As a consequence they are truly empowered.
Third, a clear distinction needs to be made between good versus bad quality.
Fourth, organisations must embrace the PSP philosophy: Pre-, Self-, and Post-
Inspection at the source.
Finally,, Poka-Yokes require real-time feedback and corrective action. These are the
building blocks of an effective Poka-Yoke effort.
Additional Reading:
Standardised work is defined as a work in which the successive activities have been
properly structured so that it can be done efficiently.
Standardised work forms the basis for the continuous improvement of a process.
The aim of standardised work is to bring the process under control by reducing
variation. This in turn eradicates wastages and increases the productivity.
A standardised work sequence signifies the best practices for the worker to follow in
completing his job. Details of best practices are documented and displayed at
various departments using standardised work charts.
This helps all the employees working in a particular process to stick to the optimal
work sequence. The worker can easily handle problems discovered in the process,
at any point of time by referring to the standardised work charts.
Takt time is found out by utilising the equation: Takt time = time available per shift /
no of items to be produced based on demand.
For e.g. the time available per shift is 8hrs, and the required number of items to be
produced based on demand is 400 per shift. The Takt time is therefore
28800seconds / 400 = 72 seconds.
Takt time depends on customer demand and changes with variations in demand.
Work Sequence:
It is the sequence in which the operations have to be performed by the workers in
order to complete a work.
The work sequence is displayed at the work place so as to determine the workers
conformance to standardised work.
The standard in-process stock is documented and displayed at the workplace on the
standardised worksheets.
Two work sheets are used to put across the standardised work to the team members
in the production department:
• Standardised work analysis sheet.
• Standardised work combination sheet.
Standardised work analysis sheet:
The standardised work analysis sheet provides a graphical representation of the
work place.
Sometimes the machinery and equipment that the worker operates are also
illustrated.
Information about the three principles of standardised work i.e. takt time, work
sequence, standardised in-process stock is provided in the work analysis sheet.
The graphics are produced by hand rather than by a computer emphasising the fact
that the worksheets can be modified easily or updated as and when required.
It also graphically conveys the time required for each work element in the form of a
bar chart.
The time required for each work element comprises the handwork, machine time
and walking that are graphically displayed on the chart.
With the help of this chart the conformance of a worker to standardised work
sequence can be easily determined.
Additional Reading:
A value stream is a collection of all the activities required to bring a product through
the main flow i.e. from raw materials to delivery to the customer. A value stream
refers to the specific areas and activities of the firm that actually add value to a
particular product or service. The objective is to identify and get rid of the waste in
the process (waste being any activity that does not add value to the final product)
Identification of the value stream reveals the wastes in a company. These wastes
may be in the form of unnecessary steps, backtracking, or waiting time as products
move from one department to another or from one company to another.
Therefore, it is crucial to first identify the entire value stream for every product and
product family. All departments and supply chain partners should together create a
channel to eliminate all wastes. Value stream mapping is crucial here.
A map is essential before any important journey. But before reaching the final
destination one should know where he is presently. In short, one needs a “current
state map”. To know what should be achieved in the future one needs a “future
state map”. Current and final state maps are the starting points to mapping the
value stream.
Value Stream Mapping has been recognised as an important tool for effectively
designing and introducing lean production systems. It also facilitates shorter lead
times through the value chain. Serving as blueprints for lean manufacturing
implementation, seven key tools for the implementation of value stream mapping
have been identified. They are:
• Process activity mapping.
• Supply chain response mapping.
• Quality filter mapping.
• Production variety funnel.
• Demand amplification mapping.
• Decision point analysis.
• Physical structure mapping.
Process Activity Mapping [PAM] :
With its origins in industrial engineering PAM aims to establish a map of the
processes under study. First, a primary analysis of a process is done. This is followed
by a detailed analysis. All resources required in each process are recorded.
The processes can first be categorised into activity types such as processing,
transportation, inspection and storage. Then the machine or area used for each of
the activity types is noted. A flow chart of the activity type being undertaken can
then be made. This includes details like distance moved, time taken and the number
of people involved. Using this flow chart and applying techniques such as 5 Whys
(progressively asking why 5 times) helps eliminate non-value adding activities.
Few end items and many raw material and parts items are the main characteristics
of an ‘A’ plant. Unlike the V plant, the flow of materials and parts “converge” as
they approach final assembly. Convergence means that fabricated parts converge
into a subassembly, which, in turn, converge into another subassembly and so on
until final assembly. Aerospace and major assembly industries are typical examples
of ‘A’ plants.
‘T’ plants are characterised by a large number of end items made from a relatively
few common parts. These plants are similar to “A” plants except that the process is
dominated by divergences almost all occurring at or near the final assembly point.
Typical examples are the electronics and household appliance industries.
Such a description using the production variety funnel allows the person responsible
for mapping to recognise how the firm or the supply chain functions. It also helps in
targeting the point to reduce inventory and make changes to the processing of
products.
Volume structure: This diagram illustrates how the industry is structured. It can
depict the various tiers that exist in the supply and the distribution chain. Thus it
helps in capturing all the firms in a particular area of the value stream.
Cost structure: It is similar to the volume structure diagram but for the linkage to
the value/cost adding process, in place of the number of firms involved.
The information derived from this tool serves as the basis for improving the value
stream map. The process selected is the input and the improved value stream map
the output.
The objective is to identify and get rid of the waste in the process (waste being any
activity that does not add value to the final product). Conducting a value stream
map can do this.
A value stream map is a collection of all the activities required to bring a product
through the main flow i.e. from raw material to delivery to the customer. It refers to
the specific parts of the firm that actually add value to a particular product or
service.
The essence of mapping the value stream is to eliminate the seven commonly
accepted wastes out of the manufacturing operations. They are:
• Waste from over-production, e.g. making a batch of 100 when they had only
orders for 50, so that the balance had to go into stock; or making a batch of
52, instead of 50, in case there were rejects. Both tie up production facilities
longer than necessary and excess production may eventually have to be
scrapped if it can’t be sold.
• Waste of waiting time, e.g. allowing queues to build up between operations,
resulting in longer lead times and higher work-in-progress.
• Transportation waste, e.g. the time and effort spent in moving products
around the factory as a result of poor layout.
• Processing waste: e.g. off cuts of raw materials.
• Inventory waste: Inventory does not add value. Not only does it cost money
to run a store, but also its costs in terms of the interest that has to be paid on
the money tied up in stock. In many cases production of customers orders
would have been delayed as a result of production resources being tied up in
production items for stock.
• Waste of motion: e.g. as a result of inefficient layout of tools and materials
around the workplace.
• Waste from production defects: This is a result of not getting it right the first
time.
• Quality Tools > Visual Management
• How important is communication in the industrial scenario? Perhaps most
important! Operations within any organisation involve vital transfer of
information. In short, communication dictates organisational performance.
• Communication is all about a sender intending to reveal specific information
to a receiver. Researchers believe that effective communication can influence
human behaviour and performance. An efficient communication mode must
therefore be conclusive, comprehensive and clear. According to industrial
gurus, organisations that strive to attain world-class status must have
communications systems containing these three characteristics.
• However, in this era of cutthroat competition, communications systems must
also be economical. Visual communication is one such system that is both
efficient and cost effective. It includes signs, symbols, charts or even physical
models that convey a message.
• Visual communication helps organisations convey messages/information with
minimum fuss and maximum results. Sadly though, for most companies
visual communication is about a logo atop a letterhead or a building
• According to industrial gurus entering an organisation without a visual image
is like being asked to find the door in a dark room. Similarly, an organisation
that fails to provide visual signs of what each unit does is synonymous to one
operating blindfolded.
• Visual communication has always been a proven asset in many fields.
Researchers believe that visual communication catches human imagination
more strongly than any other form of communication. Statistics support this
fact:
• 1. Sight - Vision - 75% of human imagination
2. Hearing - Audible sounds - 13 %
3. Feeling – Physical - 6%
4. Smell – Olfactory - 3% and
5. Taste – Gustatory – 3%
• The role of visual communication stretches far beyond insignias within
facilities. In world-class organisations, visual communication is a part of top
management strategy. It enhances plant and frontline personnel
performance.
• Visual communications is extremely efficient because it is characteristically
universal and rich in meaning. Visual signs convey the same meaning to one
and all and are hence seldom misinterpreted.
• Furthermore, visual communication neither interferes with another functional
system nor allows any interference. Thus there is no disturbance from or of
neighbouring systems. Other communication modes may not have all these
advantages
• Visual communication is often misinterpreted as being advantageous only to
the manufacturing facility where it is installed. In reality, it is an opportunity
that can be used to enhance, the entire organisation’s reputation amongst
customers.
• Organisations using visual communication will earn the appreciation of not
just factory workers but also external customers. For most customers visual
communication is a true reflection of quality with safety being given the
highest priority. Today, safety is as important to customers as is value for
money. So ensuring safe working conditions necessitates providing value for
money to the customer.
• Visual communication is easier understood than other forms of
communication. Researchers believe that visual signs are more thought
provoking than words. This is because they have a higher influence on neuron
interconnections, present in the visual cortex of the human brain. Hence, the
likelihood of conveying the desired message to the concerned is higher.
• Visual communication does not mean logos. It encompasses the use of visual
modes to communicate information. Few good examples of visual tools are
control charts and storyboards. These visual/graphical performance
curves/charts should be displayed at the facility as they help employees
understand equipment performance and work accordingly.
Referred to as ‘wet blankets’ these objections reduce employee morale and kill their
enthusiasm for making improvements.
‘Is there a simpler way of doing things?’ and ‘What does the customer really want?’
are two questions that Kaizen team members can constantly ask themselves for
making improvement.
2) Get to know the problem first hand:
Before implementing Kaizen on any process, the Kaizen team should first go to the
work place where the improvement is sought. They should observe the process first
hand and identify the issues faced. Thereby, they understand the root causes and
develop better solutions.
3) Blame the process not the person:
Kaizen teams assigned for making improvements in a particular process should
avoid blaming workers for any failure or issues in the production cycle. Instead they
need to think of why a particular failure happened rather than thinking of who is the
cause for it. Focus should be on the process rather than the person.
4) A bird in hand is worth two in the bush:
Solution to a problem need not always be perfect. The Kaizen team cannot expect
to make progress if it is waiting for the perfect solution before applying it. It is better
to apply the best solution in hand and seek to improve on it eventually.
5) A failure is not the end of the world:
An initiative like Kaizen is bound to have its share of mistakes and failures. Kaizen
teams should not get discouraged if any of their improvement solutions fail to
produce results. It is more important to learn from mistakes and move on.
6) Aim for minimum investment:
Kaizen involves the application of common sense and cost effective techniques.
Hence, the Kaizen team should pursue ideas that involve minimal investment.
7) Problems are but opportunities for improvement:
“Necessity is the mother of Invention”. Tough situations often bring out the best
solutions. Therefore, every new problem should be seen as an opportunity for
improvement and embarked upon as such.
8) Keep asking ‘Why’:
Kaizen teams should never be satisfied with the seemingly obvious. A solution to a
problem should address its root cause to be effective. Often there could be more
than one root cause to a problem. Asking why repeatedly is a simple but effective
way to arrive at root causes and their relationships.
9) Look at issues from all perspectives:
Before arriving at a solution to a problem the Kaizen team should view the issue
from all perspectives. Seeking inputs from all people concerned - directly or
indirectly - is one good approach.
The six-hat thinking technique is another good approach to analysing an issue from
different perspectives. This technique involves thinking from different perspectives
regarding a single issue. Based on the colour of the hat the thinker wears he thinks
in modes such as facts and figure, the positives, the negatives, feelings and
intuition, creative ideas, and facilitation mode. This approach helps bring out all
possible aspects related to an issue.
A leader should be able to make use of the Sensei not just for training but also for receiving feedback on the team’s
progress. He should also be able to leverage the Sensei’s influence with the management to resolve pending issues like
resource allocation.
9. Sustain the progress made:
Making improvements is half the work accomplished. The next half is sustaining the improvements made. Without proper
follow up the progress made could be lost due to complacency. The leader should ensure that the improvements made are
continued.
10.Make Kaizen enjoyable:
Members should enjoy being a part of the Kaizen team. Allocating members the tasks they feel comfortable with and
maintaining daily humour to keep them in good spirit are possible solutions.
Making improvments may not be a very difficult task, but sustaining them is. A look
at how Kaizen can come to the rescue!
In the late 1980s, manufacturing underwent several changes and new ideas
emerged. Companies worked extensively to reduce time-to-market, improve quality
and reduce costs.
Hill-Rom is one of the two main business units of Hillenbrand Industries in the US. A
leader in the healthcare community worldwide, Hill-Rom provides innovative patient
care systems and solutions including vital hospital equipment. Given the highly
competitive and technologically advanced market it operated in, the company
attempted to reduce its cycle times in 1992 to maintain leadership.
With the help of a consultant who evaluated the company’s core business
processes, Hill-Rom identified four core processes and established cross-functional
teams to improve them. The teams analysed the processes, suggested changes and
reviewed the changes for a year. Hill-Rom believed that the improved processes
were working perfectly and disbanded the four teams in 1993. However, by 1994,
the company found results from the improved processes deteriorating. The initial
appearance of good results had been a consequence of measuring the processes
and not due to fundamental changes introduced.
Hill-Rom then called in another consultant from Japan, who taught its employees the
principles of Kaizen and the Toyota Production System (TPS).
Upon dropping the services of the second consultant in late 1995, Hill-Rom
observed that the improvements also stopped. The principles and ideas imparted by
the consultant worked as long as he guided the employees, who had not
internalised the ideas.
In 1996, the CEO, a strong advocate of Kaizen and lean principles called for a
meeting of key Hill-Rom managers. Initially, they were not enthusiastic, having
already used similar methods twice without long-term success.
However, the CEO’s approach at the meeting changed everything. Later referred to
by the participants as the ‘significant emotional event’, it was through this meeting
that the CEO clearly explained his commitment to permanent improvement. He also
stressed the need for employees to be committed to making permanent
improvements, not just ‘quick fix’ solutions.
• The objective of the Kaizen event was set. These were stretch objectives
aiming at a minimum improvement of 20%. Often the company obtained 50%
improvements at the end of the events.
• About 10-12 employees formed the Kaizen team. One third of the team
members were employees currently in charge of the process to be improved
while one third were stakeholders in the process like managers, engineers
and accountants. The rest of the team comprised employees who were not
directly associated with and had no idea about the process to be improved.
They were involved to provide a new perspective. It was observed that the
best ideas for improvement came from them.
• Every Kaizen event involved four weeks of preparation time. The actual event
lasted for a week while post-event work took nearly four weeks.
• On the first day of the Kaizen event, team members were trained on Kaizen
and lean production principles, irrespective of their previous experiences.
Brainstorming sessions were conducted to identify further improvements. On
the second day, the ‘as-is’ process was studied and the first round of
improvements implemented. On the third day, the impact of changes on
improvement targets was assessed and further changes introduced. On day
four, the changed processes were observed for stability. The last day of the
Kaizen event saw a final presentation and celebration of results among all
employees.
• Following the event, there was close follow-up work, which included ensuring
that the improved processes performed as planned and sustained results
along with other follow-up activities.
Results from one such typical Kaizen event at Hill-Rom is tabulated below:
Before Goal Result
Productivity 72 50% 141(100%)
(no: of items)
Cycle time 366 seconds 50% 181 sec (100%)
WIP Inventory 10 - 1 (90%)
(no: of items)
Floor space (sft) 709 - 165 (77%)
Hill-Rom says that all its Kaizen events are quick and crude, not slow and elegant. It
has now become the company’s standard of thinking and working. According to Hill-
Rom, its ‘Kaizen eye’ helps it to constantly attack and eliminate waste from the
system. This enables greater value-addition and better products at a faster pace.
Continue:
Putting The Brakes on Poor Quality The Kaizen Way
Best Practices > Putting The Brakes On Poor Quality The Kaizen Way
Continental Teves AG & Co’s plant manager aimed at continuous improvement to ensure the highest quality and be the
lowest cost producer of brake assemblies in the world.
The Continental Teves AG & Co (CT) has its Braking Systems plant located at Morganton in the US. The plant operations
are dedicated to the assembly of more than 80 different types of brake systems.
The plant was built exclusively to assemble the Mk. 20 ABS brakes. Its major customers are Daimler Chrysler and Ford.
The other customers are Nissan, Honda, Toyota and Mitsubishi. Although these customers use the Mk. 20 ABS Brakes,
there are more than 80 different types. The variations are in the form of different valves, pistons, control units, motors etc.
With a staff strength of 720, CT ‘s annual production touches almost three million brake systems.
The plant manager’s goal is to make the company the ‘highest quality and lowest cost’ producer of electronic braking
systems in the world. The plant’s Kaizen activities include customer driven improvements, value added activities, total
productive maintenance and complete employee involvement.
CT’s plant manager aimed at continuous improvement, which would be of the highest quality and yet be the lowest cost
producer of brake assemblies in the world. The implementation of Kaizen was an important step in this endeavour. The
company first identified areas where improvements are required and then appointed teams consisting of staff members
called “Kaizen Improvement Teams” (KIT). One such team was formed to focus on material wastage and it brought in
substantial improvements.
The KIT team for material waste reduction was formed to reduce material wastes by 10%. The team consisted of
technicians, operators, supervisors and engineers who met on a weekly basis to review progress.
The team identified that one of the main causes for scrap generation was the damaged aluminium valve blocks. The
aluminium valve blocks had a safety critical nature and once dropped, they were unfit for use. The slippery nature of the
blocks was the main cause for their being dropped.
A simple and effective way to prevent dropping was by providing workers handling these parts with cloth gloves. In
addition, visual display charts were also put up in the assembly areas. Interacting with workers helped in identifying and
solving process defects before rejects were produced. All the above activities helped CT to reduce material wastage by
50%.
Another important aspect was the involvement of employees in the improvement programmes. CT introduced training
programmes for its staff. Training imparted new and better methods of production. The workers who had simple skills of
hydraulics were trained on Statistical Process Control (SPC) methods. The newly recruited members were also given
training over a period of two weeks. They had to stay at a college for a week and the next week the training was conducted
in the factory.
CT found that the employees focussed more on the production capacity and also examined bottlenecks. The company had
a prevailing production rate of 4000 to 4500 units per assembly line in a single shift. Plant workers concluded that by
modifying the equipment, the production could be increased to 6000 to 7000 units per line per shift.
Regular communications at all levels was crucial in CT’s improvement programmes. Meetings were held on a daily and
monthly basis to review the financial performance and other details. Visual management tools were displayed throughout
the factory. This included scoreboards providing performance details of assembly lines like overall equipment effectiveness
These scoreboards are updated every 30 seconds.
The company also rotated its workers position on an hourly basis. This gave them an opportunity to improve their skills
and also to interact with other people. It also reduced the possibility of repetitive stress injuries caused by doing the same
work every hour, every day.
To remain competitive companies need to focus on continuous improvement through initiatives such as Kaizen. Improving
productivity without increasing capital equipment while maintaining quality requires employee involvement at all levels.
The company should provide complete support to the employees and help them contribute their best by providing excellent
work atmosphere, adequate training and good compensation.
Continue:
Kaizen and Plant Optimisation
Many companies believe that Kaizen is a slow, incremental step function, but at Black and Decker it was projected as a
‘Breakthrough event’.
Black and Decker (B&D) is a power toolmaker in the USA. It’s Spennymoor plant produces 14 million tools annually with
2000 monthly product variations which gives the company unlimited opportunities for process improvements. B&D adopted
Kaizen under the guidance of the TBM consulting group. The Kaizen programme was a major breakthrough that generated
enormous savings and improved employee morale and teamwork. Impressed by this, B&D then held a week- long Kaizen
demonstrator event to spread the message among senior managers from Rolls Royce, Alstom, Polaroid and other
companies.
In the past, people in the manufacturing industry concentrated on increasing automation. This involved high investments,
inventory stocking and space wastage. The Kaizen programme aimed to concentrate on specific process areas, analyse and
rebuild them by reducing wastes to achieve flexible, Just In Time manufacture.
B&D took up process improvement and aimed at plant optimisation using Kaizen under the guidance of TBM Consulting
Group. TBM emphasises the principle of ‘Lean manufacturing’ in its Kaizen approach. It focuses on identifying and
minimising non-value adding activities. Many companies believe that Kaizen is a slow, incremental step function, but TBM
consultants projected it as a ‘Breakthrough event’. According to TBM, implementing a typical Kaizen event involves only a
three-week programme.
In the first week, a Kaizen team is formed consisting of production operators, supervisors, quality engineers and a few
people from other departments. The leader of this team collects information, drawings and layouts of the assembly line.
In the beginning of the second week, after a six-hour training on basic Kaizen concepts, the team reviews the entire
production process. This includes flow of material, operation and market demand for the product. The team then
determines the Takt time (Takt is a German word used to specify the pace of production by a unit.). It then identifies areas
to be improved and also the waste and non-value adding operations. The line is then disconnected and reconfigured to
enable flexible manufacturing.
Analysis of results is undertaken in the third week. It is then standardised to create the new working process.
After holding more than 50 such Kaizen events, B&D earned substantial savings. Since all its employees were involved in
the improvement programme, it gave them an opportunity to improve their skills. This brought in teamwork and
responsibility among employees.
Although in its initial stages, Kaizen focused on finished product assembly lines that are more labour intensive; it can also
be applied in areas where machines predominate. These include component manufacturing, injection moulding, and
motors.
Continuous improvement in any process requires continuous change. To remain competitive, companies have to take up
the challenge of innovation. Although some companies are reluctant to break away and change from conventional
manufacturing practices, the concept of Kaizen is catching up. It has resulted in achieving maximum efficiency and quality,
while minimising inventory and wastes.
Adopting Kaizen has enabled many companies to continuously improve their services and meet customer expectations of
high quality, low cost and consistent, Just In Time delivery.
Form teams with your line personnel—allow them to move your machines and
fixtures; give them authority to make process decisions. This is KAIZEN! Kaizen is a
culture of sustained continuous improvement focusing on eliminating waste in all
systems and processes of an organisation. The Kaizen strategy begins and ends
with people. An involved leadership guides people to continuously improve their
ability to meet expectations of high quality, low cost and on-time delivery .
Lantech Inc. a Kentucky based wrapping machine company has turned itself around
– as a result of applying Kaizen principles, in its plan. In 1989 Lantech Inc. saw a
host of competitors, poised to threaten its position. The company knew that it
needed to lower its costs, to survive. Kaizen was the answer to its problem.
The key concept behind KAIZEN is that no worker is laid off as a result of process
improvements. Lantech Inc. conducted dozens of internal Kaizens covering
production processes and activities.
Kaizen teams were formed from line personnel themselves. The teams completed
the job of instituting plant floor improvements within five days. Some of the key
changes done by Kaizen teams on the shop floor were:
• After observing one worker stop six times during a task cycle to use a tape
measure to measure and cut cable, the team attached standard cable length
marks to the workbench. The operator now only needed to lay the cable
along the marks and cut to the desired length. Cycle time saved was: 3min.
• A roll-carriage assembler made upto 75 trips per cycle from his workbench to
various locations around the fixture that held the 175-lb roll carriage. The
team developed a fixture that swivelled the roll carriage to any desired any
position. Total cycle time saved was: 12.5 min.
• Improvements promised not only to save time but also worker fatigue. One
worker had used a mallet to pound away at rivets to seat them in a plastic
strip for the limit-switch mount. Team members showed her the hand-press
tool that they had bolted to her bench. Then they showed how she could
simply position the fasteners on the strip and pull down the handle to seat
them. She was grateful to them. Cycle time saved was: 6 min.
By virtue of performing several Kaizens, Lantech changed assembling machines
from modular parts in inventory, to a total custom-order process. It as a
consequence cut order processing time from about 5 weeks to 14 hours. Now it
carries no inventory and these measures have slashed costs. Sales have gone up
several times, with less floor space.
Lantech willingly endured a five-day process improvement team blitz, because the
five-day approach moved faster than the company’s bureaucracy could step in and
stop progress. Kaizen improvements take place quickly, before vested interests can
convince the change agents in a company that they need not be done. Even
physical changes, such as moving machinery happen quickly.
The idea is not to debate which of the two ideas is the better but to choose one
quickly and implement it. That’s how Lantech made continuous incremental
improvements. Also, Kaizen teams have no capital budgets and so they are forced
to make changes that do not cost money. They instead utilise their practical
experience and creativity for making improvements.
In the Kaizen system, displaced workers get better jobs. For instance, if a three
-person operation is reduced to two people, the smartest or most experienced
worker is the one who leaves the operation and becomes part of the resource team.
The line worker now works on team projects like instituting more plant-floor
improvements, besides carrying out improvements given by the Kaizen team.
This process is not easy on the ego of managers. Managers have to listen and trust
their line workers in a Kaizen system. Those unable to adjust to this should opt out
and find another place to work. Among the line workers, however, Lantech Inc. had
a very low turnover.
Continue:
Scartching The Tip Of The Iceberg
Case Studies > Scratching The Tip Of The Iceberg!
Early in August 2000, TRW Chassis Systems decided to implement a Kaizen event at its plant manufacturing Anti-lock
Brake Systems (ABS) located at Fenton in the US.
The management brought in a Japanese expert to motivate and guide their employees to make continuous improvements.
The expert issued a mandate asking employees to solve some of the plant’s most pressing problems in just five days,
without stopping production. Although an arduous task, the employees took up the challenge under the guidance of the
expert.
The expert first briefed the plant personnel at TRW on the most basic principles of lean, namely the 5-S practice. The
English equivalents of 5-S are -Organisation, Neatness, Cleaning, Standardisation and Discipline. The expert then asked
the employees to create action teams to solve the most pressing problems faced by the plant without hindering production.
Further, he instructed action teams to take immediate action and document whatever they observed and implemented,
rather than speculate and make elaborate plans for future. Managers and engineers were asked to actually work on the
production line to understand problems instead of merely going around the plant.
A surprise in store!
First the team arrived at the cycle times for every operation on one of the production lines. An interesting aspect here was
that the same task was carried out a few months before the Kaizen event, and employees who worked on this line agreed
with the results.
The final test station in the line was projected as the bottleneck. But when the Kaizen team scanned the operations on the
line with stopwatches, they were in for a surprise…the culprit that was actually slowing down production was the bar code
scanner. Analysis revealed that the scanner, which was first configured for one particular product developed problems when
a different product was run on the line. The team contacted the technical team who reconfigured the scanner and thus
solved the problem.
On the consecutive days, the team observed areas in the line where equipment could be shifted and production units could
be moved together. These would help minimise the movement of parts between operating lines. It would also bring
operators closer, thus giving them the opportunity to interact among themselves and help one another. This could result in
substantial reduction of man-hour and overtime costs.
The fifth day of the Kaizen event was dedicated to preparing projects for the improvement of ideas. The team realised that
they had many more ideas that could be implemented to improve production. What they observed during the five day
Kaizen event was just the tip of the iceberg!
The final analysis of the five-day Kaizen event at TRW showed many improvements, and also opened avenues for many
more, which with a little tweaking became part of the Standard Operating Procedure (SOP). Ultimately, continuous
improvement is just scratching the tip of the iceberg, only to bring more of the ‘iceberg’ to the surface!!
Continue:
Furnishing Kaizen
When used furniture was brought to Open Plan Systems, it was immediately
evaluated and sent into production if it fitted an order, otherwise it would be put in
inventory for future use. Based on the orders received, it either remanufactured the
furniture, or the company made brand new products.
One of the biggest challenges faced by the company during the change from mass
production to Kaizen style of manufacturing was gaining employee trust. The
company introduced a bonus for time improvements to motivate the employees.
The company took one department at a time and implemented Kaizen. In the
process it involved the management and department representatives. Employees
were required to give a presentation on the proposed changes and their impact on
labour, time, cost of materials and quality to the management and board members.
Open Plan Systems focused on small batch sizes than on maintaining finished goods
inventory and on smooth flow of each process instead of relying on one lot of
material handling. As a result, the panel lot sizes dropped from 60 to 12. This left
the company with time and work force to handle customer projects and special
requests.
In 1997, 120 people were handling 75% of sales volume, but currently the company
is able to do the same work with 60 sales people. The lead-time was dropped from 4
to 2 weeks, for most of the projects after the transition. The material handling time
has reduced, and so have bottlenecks in mass-production.
Management oriented Kaizen has resulted in achieving maximum efficiency and
quality along with minimising inventory and waste in several organisations.
Business or organisations need to recognise that Kaizen guides people to
continuously improve their ability to meet high quality, low cost and on-time
delivery.
Continue:
A Commitment to Continuous Improvement
Case Studies > A Commitment To Continuous Improvement
Aeroquip Inoac Co. (AIC), a joint venture owned by Cleveland based Eaton Corp. and
Japan-based Inoac Corp. manufactures rear-deck spoilers and body side mouldings
in its plant located at Livingston. Besides these, AIC also has exterior trim
manufacturing plants at Atlanta, Fremont and Ohio.
AIC’s customers include leading automobile giants like General Motors Corp., Ford
Motor Co., Toyota Motor Corp., and Honda Motor Co. Ltd. Built in the year 1987,
AIC’s plant in Livingston now has an employee strength of 187.
A visit to this plant shows that the interior walls are lined with photographs of plant
managers and other employees along with detailed accounts of their
accomplishments. What these depict are the achievements of the closely-knit group
of employees dedicated to the cause of continuous improvement.
However, the situation was not the same in the initial days of the company. Prior to
1992, the plant followed the conventional quality-control environment, wherein
quality technicians conducted routine inspections on products after their
manufacture. Much of the responsibility for product quality was with the quality
department. However, the transition to a Quality Assurance (QA) operation resulted
in a major change in employees’ perspective of quality. The QA environment aimed
at “defect prevention” rather than “defect detection”. Thus, quality became the
responsibility of all employees.
A newly appointed officer at the plant ventured to shift to the new quality initiative.
He believed in the power of employee ownership and the benefits involved. The
plant started off on a Kaizen initiative, and the employees participated with keen
interest. They appreciated the fact that their suggestions were being valued and
implemented.
An average of three Kaizen events were held each month which generated
significant improvements especially in the work cells. Some of the major benefits
were
• 185% increase in throughput.
• 50% reduction of floor space.
• 76% reduction in material wastages.
• 80% reduction in walking distance.
The concept of implementing employee suggestions has brought tremendous
improvements and benefits in two areas of the plant. They are the spoiler sanding
area and painting cells. Rearranging the cell and using a new type of sander and
grade of sandpaper helped to reduce the manual sanding steps per part from ten to
four. The number of pieces sanded per hour increased from 8 to 12.5 and the
walking distance was reduced by 46%.
Introduction of JIT /continuous-flow methods have not only helped AIC to minimise
inventory, but also to identify and eliminate defects speedily. This has minimised
capital investment for the plant. According to an official at AIC, “the Livingston plant
only manufactured what each customer required for the next day”. This tight
inventory control resulted in an almost perfect on-time delivery rate of 99.997%.
The dynamics of new-product introductions and shorter product life create a market
that demands response in terms of days, not weeks. To successfully respond to such
situations, one of the vital requirements for continuous improvement, there must be
complete synergy in the manufacturing processes. This synergy can be best
obtained by embracing the ideas and skills of the employees.
Offline Reading > Books
Given below are some books relating to Kaizen with a brief description on each of them.
Continue:
Online links to Techniques and Tools
Given below are some online links that encompass the techniques and tools in
Kaizen.
Techniques:
Kaizen implementation involves the application of simple and cost effective tools.
Some links:
Continue:
Online links to Tips
Top
Online Navigator > Tips
Given below are online links providing inputs for better Kaizen implementation.
Continue:
Online links to Additional Resources
Online Navigator > Additional Resources
Given below are some online links that provide additional information pertaining to Kaizen other than the concept,
techniques,tools and the tips.
1. Guru’s view of Gemba:
This document outlines the contrast between Kaizen and Western approaches as viewed by Kaizen guru Masaaki Imai.
http://www.kaizen.org/PDFfolder/kaizenguru.pdf
2. An interview with Masaaki Imai:
This document consists an interview with Kaizen guru Masaaki Imai.
http://www.qualitydigest.com/june97/html/imai.html
3. Reading materials to sharpen Kaizen awareness:
This website is an archive of various articles and reading materials relating to kaizen. These articles are displayed under
different sub-groupings as Kaizen news, kaizen forum, kaizen links and kaizen cases.
http://www.kaizen-institute.com/knowkaizen/centralmagazine.html
5. Glossary:
This documents contains the glossary of terms that are a part of the Kaizen concept.
http://www.1000ventures.com/business_guide/glossary_lean_kaizen.html
Given below is a list of Kaizen consultants with a brief on each of them as posted in
their websites.
1. KAIZEN® Institute
http://www.kaizen-institute.com/institute/institute.html
Kaizen® Institute (KI) is a global management consulting company, recognized as
the international leader in enabling companies to learn and implement continous
improvement through KAIZEN® strategies. KI enables clients to build competitive
advantage through their unique approach to process improvement. KI facilitates the
development of a new organization culture that embraces employee involvement,
vision and leadership.
KI provides worldwide support to companies through strategically aligned business
units. Located in North America , Europe, Asia/Pacific region and Southern Africa.
Our consultants are the biggest assets to KI as well to our clients. KAIZEN® Institute
consultants are highly experienced and have the ability to work with all levels of an
organization, including union leadership. Every consultant has led significant
change efforts, both as consultants and as executives in a variety of manufacturing
and service companies.
2. Kaizen Training Limited
http://www.kaizen-training.com/
Kaizen Training Limited is a consulting and training firm based in the UK and offering
its services to the global business community. Our vision is simple - to help our
chosen clients realise theirs. We make a positive difference in the world through the
three strands of learning, leading and changing.
Kaizen Training has grown since 1987 to become a consulting and training firm with
an international reputation in designing and delivering brain-friendly learning,
leadership development and organisational transformation.
3. Gemba Research
http://www.gemba.com/contact.htm
Customer satisfaction is our number one priority. We provide support and service
until the results of the project are met and sustained. Kaizen and Lean
manufacturing training is only the beginning of the services that we offer. We
implement Lean thinking into any organization from Hospitals to distribution centers
to office areas.
4. Blom consultancy:
http://www.blomconsultancy.nl/Blom%20Consultancy.htm
Consultancy in Netherlands specialised in full-scale planning and implementation
support of World Class Manufacturing (WCM) programs such as TPM, EFQM, Kaizen,
TQM, Six Sigma, JIT and Lean Manufacturing. WCM aims for ‘higher production at
less effort’ by continuously reducing losses and creating ownership.
5. Business process solution international:
http://www.bps.net/
A consulting service and education organisation that blends strategic, operational,
and educational expertise to provide powerful solutions to resolve complex
competitive issues. This US based consulting firm helps refocus your goals, define
your organisational objectives, and improve profitability.
6. Solution plus Inc:
http://www.solutionplus.com/index.htm
Founded in 1996, A Canada based consulting firm Solutions Plus Inc. is an
International Lean Process, Business Transformation and Human Capital consulting
firm specializing in an integrated approach to continuous product, process & human
improvement, with an emphasis on professional development & adult learning.
7. Wyrick Enterprises Inc:
http://www.wyrickenterprises.com/
California-based training and consulting firm whose mission is to improve client
organisational performance by assessing their Leadership, Processes & Systems
needs and providing the appropriate resources at the Right Time…with the Right
Talent…to produce the Right Results! Our resources work together to help your
resources work together . . . better!