Canon Follows Kaizen Approach

In 1975, Canon set an ambitious goal for it--to become a world class corporation within sixyears. It succeeded beyond anyone's expectations, raising productivity an astonishing 3 % per month and introducing new products with the latest technology at an unprecedented rate.It beginswith a commitment to the total elimination of waste. A matrix management system thatincorporates many small group activities follows Canon's keys to success are waste elimination,continuous improvement, and a vitalized workforce."Canon's continuous improvement system isconsidered one of the best in Japan. Visit any Canon factory and you'll quickly see why. In everypart of the plant there are visible signs of ongoing improvement activity: up-to- date status chartsin every work center, and eye-catching handmade posters promoting the factory-wideimprovement focus for the month. A small group meeting is held in the lunch room, while inanother room workers visiting from another plant view improvement results presented on anoverhead projector. In assembly, a young foreman consults a long list and visits with workers --he's distributing small cash awards for work improvement proposals to almost every worker onthe line! Rigorous control activities are also in evidence. Clear work guidelines and qualitystandards are posted at every work station; quality and productivity measures are recordedcontinuously. And throughout the plant, a quiet intensity prevails -- everyone works at a rapidpace, but there's no sign of a rush anywhere. This is the result of Canon's "software for success" -the "hidden" management systems that make the idea of continuous improvement a functioning reality at canon. In business Kaizen encompasses many of the components of Japanese businesses that have beenseen as a part of their success. Quality circles, automation, suggestion systems, just-in-timedelivery, Kanban and 5S are all included within the Kaizen system of running a business.

The Objectives of Canon Production System CPS The objectives of Canon Production System (CPS) are to manufacture better quality products atlower cost and deliver them faster.Reflecting rigorous organization (5Ss, Kaizen, TPM) the CPS aims at bringing about constantimprovements in performance and has provided the spring-board for Canon.Implementing Kaizen: 7 Conditions The Three Basic Structures of CPS 1.Quality Assurance (QA) System Canon tries to ensure the best quality in all stages of development, production, anddelivery to gain worldwide respect for their products. 2 Production Assurance (PA) System. PA is aimed to achieve just-in-time manufacturing, fast delivery, low cost, and also adoptthe "visual control" philosophy. Canon has devised two subsystems to attain these PAgoals: Canon's HIT System (equivalent to just-in-time) and Signal System. The HITSystem means making parts and products only when needed and only in the quantityneeded. Canon uses either HIT cards or signals for this purpose. 3 Personnel Training (PS) System Under this system, Canon's employees are continually educated through a life-long educationprogram. The other critical instruments for realizing CPS objectives are the "four investments"(technologies, human resources, facilities, and welfare) and "elimination of 9 wastes." Waste Categories and 9 Wastes to Be Eliminated 1.Work-in-processStocking items not immediately needed 2.QualityProducing defective products. 3.FacilitiesHaving idle machinery and breakdowns, taking too long for setup. 4.ExpensesOverinvesting for required output. 5.Indirect labor - Excess personnel due to bad indirect labor system. 6.TalentEmploying people for jobs that can be mechanized or assigned to less skilledpeople. 7.MotionNot working according to the best work standards. 8.Product DesignProducing products with more functions than necessary.

9.New-product run-upMaking a slow start in stabilizing the production of a new product.

Benefits of 9-part classification of wastesHelps employee become problem conscious. Helps them move from operational improvement to systems improvement. Helps employees recognize the need for self development. Kaizen Time In some Canon plants, the foremen are told to set aside the half-hour as Kaizen time time to donothing but thinking improvement in the workshop. The foremen use this period to identifyproblems and work on Kaizen programs. Factories are advised not to hold meetings during this30-minute period, and foremen should not even answer the telephone then. 6 Guidelines of the Canon's Suggestion System 1.Always show a positive response to suggestions for improvement.

2.Help workers to write easily and give them helpful suggestions about their work. 3.Try to identify even the slightest inconvenience for the workers. (This requires very goodsuperiorsubordinate communication.) 4.Make the target very clear. Example: How many suggestions do we need this month?Which area (quality, delivery, manpower, etc.) do we need to work on now? 5.Use competition and games to arouse interest, such as displaying individual achievementcharts. 6.Implement accepted suggestions as soon as possible. Give awards before payday. A Model Workshop At Canon, a Model Workshop means a workshop where: Performance is continually improving Manpower development efforts are continually made

There is always Kaizen for reducing wastes.

Individual roles and goals are clearly defined

The agreed-upon rules are strictly obeyed What is going on in the workshop is readily visible and understandable

What is Continuous Improvement Firm (CIF)?

CIF is a firm continuously improving on customer value due to improvements in productivity initiated by the members of the general work force. Productivity in CIF is broadly defined to include all facets of product quality as well as output per worker. A basic operating principle of the CIF is that improvements in product quality often produce simultaneous reductions in costs. The key success factor in this endogenous, incremental and continuous technological and operational change is the organization and management of the firm in such a way that all members are motivated to promote change and is supported in their effort to do so. What is remarkable about the CIF is its ability to operate simultaneously in all innovation areas: strategy new products, new technology, new organizational forms, and new customer relationship management.

People as Their Most Important Asset

People are their most important asset. Your technologies, products and structures can be copied by competitors. No one, however, can match your highly charged, motivated people who care. People are your firm's repository of knowledge and they are central to your company's competitive advantage. Well educated, coached, and highly motivated people are critical to the development and execution of strategies, especially in today's faster-paced, more perplexing world, where top management alone can no longer assure your firm's competitiveness.

Social Networks (SN) and Modern Companies

: SN is a major capital of thecompany. They may help to leverage real peoples interactions for everything from trendspotting by scouring public conversations to identifying internal experts within a department toensuring that a manager actually results in cooperation among employees.

Canon follows the five-S approach

The "5S" refers to five Japanese principles for workplace management to increase efficiency. 1.Seiri (Sort): Do things in the proper order. Eliminate unnecessary items from theworkplace. Keep the strict minimum. 2.Seiton (Set in order): Specify a location for everything. Put things where they belong.Set in order and identify useful items in order to locate them more easily. "A place for everything and everything in its place." Designate Location by number, color coding,name, etc. 3.Seiso (Shine): Specify recommended procedures for cleanup. Follow the procedures.Thoroughly clean the work area or work place. 4.Seiketsu (Standardize): Standardize best practices in the work area. Keep equipmentand the workplace in the best possible condition.

5.Shitsuke (Sustain): Scrutinize practices; expose the wrong ones; learn correct practicesand make sure you use them. The 5 S approaches is a basis for continuous improvement and can lead to less waste. The 2 S (Sort and Set in order) are the keystone for the 5S. The other 3 S (Shine, Standardize, and Sustain) are the keystone for the 2 S.

Implementation
The Five Ss are implemented through frequent grading of each work area by using an inspectioncheck sheet. In some factories, Five-S committees conduct regular inspections of plants anddepartments using Five-S criteria. In other factories, the work areas evaluate themselves on aweekly basis.All work is expected to continuously find ways to improve regardless of their performance. Results of evaluations are posted on bulletin boards to foster responsibility and pride. The best work areas are awarded recognition plaques. Benefits The Five-S movement helped change attitudes. Employees started readily follow workplace rules(keeping parts and tools in the right place, etc.), that previously had been difficult to employ. As a result, performance measures such as defect rates, equipment breakdowns, and number of accidents have all been improved.

The Five-S movement helped change attitudes. Employees started readily follow workplace rules(keeping parts and tools in the right place, etc.), that previously had been difficult to employ. As a result, performance measures such as defect rates, equipment breakdowns, and number of accidents have all been improved.

CPS Notebook
Each Canon employee receives a 55-page pocket-size CPS Notebook that explains the CPS, how to get Kaizen targets, and the award system. These CPS Notebooks also have special pages entitled "My SelfDevelopment Goals Method, Tools, and Investment" to be filled in by the worker .

Human Resources Development

At Canon, it is the supervisor's responsibility to attempt to give each employee the widestpossible range of skills. This is achieved both by formal training and through job rotation.Managers attach considerable importance to the direct involvement of employees in processdesign, process improvement, and the achievement of smooth harmonious production.In each working area, matrix charts are displayed. The vertical axis lists the names of alloperators in the department and the horizontal axis is divided into columns, each describing aspecific skill or task. The boxes in the chart are shaded against each employee to show at aglance the skills each has acquired.

Award System
Canon employees are offering around 50 improvement ideas per year per employee.Canon provides awards for individuals, small groups and workshop units. These awards areintended to show management's appreciation for the efforts and the results.A unique feature of Canon's suggestion system is the lifetime cumulative award system. Eachsuggestion is given a certain number of points, and every year President's Awards are given tothe 20 people who have accumulated the most points since the system's inception. Each recipientreceives a certain amount of money and a gold medal.Since this can get a bit repetitious, there are also Presidential Awards for the most points in agiven year, the top 30 people receiving a smaller amount of money and silver medals.The list of Annual Awards provided at Canon includes: Model Workshop Award, Runner-upModel Workshop Award, and Award for Eliminating 9 Wastes, CPS Performance Award,Excellent Small-Group Activities Award, Cumulative-Point Presidential Award, Annual-PointsPresidential Award, and Special Presidential Award.Canon gives also Gold, Silver, and Special awards to their suppliers that have built promisingsystems for Quality, Cost, and Delivery.