PRESENTATION

GROUP 8
 NGUYỄN UYÊN LINH

GIANG TRẦN TRỌNG HIẾU

MEMBERS GROUP 8

VÕ THỊ TRÀ

HỒ THỊ HỒNG QUỲNH

 CONTENTS
TOTAL QUALITY
KAIZEN SIX SIGMA
MANAGEMENT (TQM)

What is Kaizen? What is Six Sigma ?

Principles for Kaizen What is TQM
Understanding of Six Sigma
Kaizen process and PDCA A TQM culture
Six Sigma Methodology
Cycle Principles of TQM
Key principles of Six Sigma
Kaizen 5S framework Advantages of TQM
Six Sigma Certification
Advantages of Kaizen Disadvantage of TQM
Advantages of Six Sigma
Disadvantages of Kaizen TQM Examples
Disadvantages of Six Sigma
Examples of Kaizen Examples of Six Sigam
MANAGERIAL ACCOUNTING 2

COSTING
KAIZEN

"Kaizen means
continuous
improvement in the
personal life, home
life, social life and
working life."
-Masaaki Imai
The founder of the Japan-
based 'Kaizen Institute,'

Kaizen Institutude
 WHAT IS KAIZEN?
Kaizen is the Japanese word for continuous improvement based on the idea that
small ongoing positive change can reach significant improvement.
THE DEFINITION
 Continuous
improvement
KAIZEN PHILOSOPHY 'S KEY
OBJECTIVES

Just-in-time The use of efficient

delivery equipment

Quality control

Standardized work The elimination of

waste

THE OVERALL GOAL OF KAIZEN IS TO MAKE MINOR CHANGES OVER TIME TO CREATE IMPROVEMENTS
WITHIN A COMPANY.
Kaizen costing
can be thought of
as a complement
to target costing

Ginyard International Co.

KAIZEN
COSTING AND
STANDARD
COSTING
 The aim The aim
K is to reduce costs to a level
S is to ensure actual costs do not
below standard cost, while still exceed standard costs
ensuring acceptable levels of
quality and product
functionality are maintained

KAIZEN
COSTING
OPERATES
OUTSIDE THE
TRADITIONAL
STANDARD
COSTING
SYSTEMS.
 Types of Kaizen costing

ASSET SPECIFIC PRODUCT SPECIFIC

All improvement activities Improvement activities are
are related to the
2 TYPES related to different resources
reduction of use of chosen related to the product
asset or resource
 7 TYPES OF WASTES
KAIZEN INVOLVES RELENTLESSLY SEARCHING AND REMOVING THE 7 TYPES OF WASTE:

Overproduction Overprocessing Defective Products

Unused skills and

Waiting Excess Inventory knowledge

Transportation Movement
 Five basic tenets
01 02 03 04 05

Teamwork Personal Improved Quality Suggestions for

discipline morale improvement

3 major Elimination of
watse
Good housekeeping Standardization

outcomes
 PRINCIPLES OF KAIZEN

01 It lays no emphasis on the present 02 The system does not strive for 03 It allows managers to exercise
existing situation, by disregarding perfection, rather seeking gradual discretion in the application of their
all ideas implemented in the improvements in the existing knowledge and personal skills.
production process. situation, at an acceptable cost.

04 It encourages collective decision 05 There are no limits to the level of 06 Kaizen involves setting standards
making, i.e., the ideas of many are improvements that can be and then continually improving
better than that of one single implemented. these standards to achieve long-
person. term sustainable improvements.

07 The focus is on eliminating waste, 08 Involves all employees and all

improving processes and systems areas of the business
and improving productivity.
 People who perform certain
tasks and activities are the
What is the
most knowledgeable about
basic principle that tasks. Including them to
of Kaizen? effect change is the best
strategy for improvement.
 KAIZEN
PROCESS
AND PDCA
CYCLE
COSTING
KAIZEN
KAIZEN
PROCESS
Kaizen is a process that should
occur continuously. Management
should be relentlessly focused on
optimizing the production process
and reducing non-value added
waste.
 PDCA CYCLE
4-Step Ordering Process
PDCA CYCLE The “PLAN” fraction consists of mapping out the changes, so that everyone
knows what to expect when teams try to solve a problem.

The “DO” function stands for implementing the best solution to solve the
problem.

The “CHECK” step comprises figuring out the solution to the problem to see if
it worked.

When the company performs the “ACT”, it determines whether the solution
should become a company standard, or if it requires further changes.

If managers decide to implement more changes, Kaizen goes back to the plan
step and the process start over.
 Kaizen 5S The 5Ses focus on:

framework Creating visual order Organization

Tip: Use links to go to a different page inside your
presentation.

How: Highlight text, click on the link symbol on the Cleanliness and standardization to
toolbar, and select the page in your presentation
you want to connect. improve profitability

Efficiency

Service and safety

5S OF
KAIZEN
 EIRI – SEIRI stands for classify
S Employees should classify and oganize things well. Throw what all is worthless Keep separately what all is
not required at the moment. Items which are critical and most necessary should be kept in a secure place.

SEITION – Seition means Organize

S Employees spoil half of their precious time looking for items and important documents. Every item should
have its own space and must be placed in its place only.

SEISO – The word “SEISO” stands for shine

S the workplace
The workplace needs to be kept clean. De-clutter your department. Important documents should be kept in
specific folders and files.

SEIKETSU– It stands for standardization

S Every organization should have specific standard rules and set policies to ensure superior quality.

SHITSUKE or Self Discipline

S Employees need to comply with the organization's policies and obey to the rules and regulations. Self
discipline is necessary.
 Encouraging and Employee suggestion
empowering employees system helps to find ways
lead to better results of cost reduction

Advantages of
Kaizen

Lean thinking helps

reducing resources
absorption
A permanent change Can increase the burden on
system lower level of management

Disadvantages of
Kaizen

Can lead to diminishing

returns if not implemented
wisely
EXAMPLES
 TOTAL QUALITY
MANAGERIAL ACCOUNTING 2

MANAGEMENT
(TQM)

WHAT IS
TQM?
Total quality management (TQM)
is a comprehensive structured
approach to achieving continuous
improvement in processes to
meet customers’ expectations
THE SIX KEY
FEATURES OF TQM
Total quality management is
organisation-wide
Total quality management is
customer-driven
Total quality management involves
empowerment

Total quality management has a

process perspective

Total quality management is

supported by a quality management
system

Total quality management involves

continuous improvement
 PRINCIPLES OF TQM

1 – CUSTOMER FOCUS
2 - EMPLOYEE
INVOLVEMENT
3 - INTEGRATED SYSTEM
4 – PROCESS-CENTRIC
APPROACH
PRINCIPLES OF TQM

5 – SYSTEMATIC FLOW
6 – CONTINUAL EFFORTS
7 – FACTUAL DECISION-
MAKING
8 – RELATIONSHIP
MANAGEMENT
 Training
Ethics

Building Teamwork
Integrity Foundation
Bricks
Trust Leadership

Binding
Roof Four groups Communication
Recognition Mortar
.
 Here is a list of eight key elements you
need to makes quality the driving force
behind leadership, design, planning,
and improvement initiatives.

8 KEYS 1. Ethics
2. Integrity
3. Trust
4. Training
5. Teamwork
6. Leadership
7. Communication
8. Recognition
 Defect production Cost reduction

Advantages of
TQM Customer satisfaction
Productivity
improvement

Improve employee
morale
 Requires a considerable
training period

Disadvantages
Have a negative effect on
of TQM costs

Incremental changes

Make redundant
from one's job
EXAMPLES

PLASTO TOYS
MANUFACTURERS
PLASTIC TOYS FOR
KIDS
EXAMPLES

ATLANTICARE, A
HEALTHCARE
PROVIDER IN NEW
JERSEY.
MANAGERIAL ACCOUNTING 2

SIX SIGMA

What is Six Sigma ?

Quality-control method
Bill Smith

1986
 DEFINITION

Data-driven analysis to limit

A method to work faster with
mistakes or defects in a
fewer mistakes
corporate or business process

Focused on meeting customer Six Sigma applies to all types of

requirements, improving customer industries.
retention, improving and sustaining Six Sigma training with special
products and services certifications
UNDERSTANDING
OF SIX SIGMA
In statistical analysis
Sigma (σ)=A standard deviation from the mean

It's basically a statistical benchmark

Achieving six sigma produces

less than 3.4 defects per 1 million

parts, is considered efficient

UNDERSTANDING
OF SIX SIGMA
UNDERSTANDING OF SIX
SIGMA
UNDERSTANDING
OF SIX SIGMA
UNDERSTANDING
OF SIX SIGMA
Six Sigma
DMAIC

SIX SIGMA
METHODOLOGY

Six Sigma
DMADV
 SIX SIGMA DMAIC

01 Define

02 Measure

03 Analyze
 SIX SIGMA DMAIC

04 Improve

05 Control

Should use the DMAIC methodology when an existing product or service is not meeting
customer needs or performing to its highest standards. It is used to correct an existing
process.
 SIX SIGMA DMADV

01 Define

02 Measure are identical to DMAIC

03 Analyze
 SIX SIGMA DMADV

04 Design

05 Verify

The DMADV methodology should be used when a business is developing a new

product or service, or when using DMAIC for a current project or process fails
 KEY PRINCIPLES OF SIX SIGMA
1. Focus on the Customer
Bring maximum payoff to
the customer
Understand its customers,
their needs, and what drives
sales or establishes loyalty to
its brand.
2. Use data
Two types: Special cause variation
and Natural variation
Six Sigma aims to reduce the special
cause variation
Ensuring the accuracy of
measurements, establish a
standardized data collection system.

3. Improve continuously 4. Involve people 5. Flexible and responsive

work environment
Forming a cross-functional The nature of Six Sigma is a
Make changes to the
team with people from business transformation
process, removing defects.
different backgrounds will and change for betterment
Remove the activities in
help identify variation The people and
the business process that
Six Sigma processes can departments involved
does not add value to the
have a great impact on an should be able to adapt to
customer.
organizational process change with ease
SIX SIGMA CERTIFICATION
THE IMPORTANCE OF
SIX SIGMA
Maintain its business approach benefits
include up to 50% process cost reduction,
cycle-time improvement, less waste of
materials, a better understanding of customer
demands, increased customer satisfaction,
value stream, and more trustworthy products
and services.

In 1995, General Electric CEO Jack Welch’s very

public endorsement of Six Sigma helped
businesses outside of manufacturing know how
Six Sigma methodologies can improve customer
satisfaction in any industry.
 Make it easy to spot
Proactive, which is problems and solve them
good for customers promptly

Advantages of
Spotting and eliminating
SIGMA the potential for defects
Continuous before they occur
improvement rather
than a one-time fix
Save money by
reducing returns
 Can cost money in the form of
About quality improvement, increased overhead and added
not cost reduction investment in machinery.

Disadvantages of
Consume a lot of
SIGMA
resources
Your products or services
will become higher quality,
worthy of a higher price
Requires a commitment
of resources
EXAMPLES
Q&A
SESSION
Any questions? I will try my best to
answer.
Thank You
For Your
Listening