“Kaizen to improve

Operational Excellence”
9th December’22

Achieve Competitive edge

Subrata Mitra Majumdar

Management & Operational Excellence Consultant
CII Faculty, Bengaluru
 WELCOME
• Welcome to the knowledge sharing and learning
session on 'Kaizen to improve Operational
Excellence’.
• The very reason you are selected to attend this
learning session is, the organization consider
you an important member, who have the passion
and can contribute to its journey toward
Operational Excellence significantly.
• Enjoy Learning.

2
 Learning Mindset, Session Fundamentals
• Consider this learning a big opportunity provided by your
organization : WIN – WIN for you and your organization
• Ensure faculty is not distracted – no side talk, ask direct
questions, mobile switched off or in silent mode.
• Note down slide numbers where you have questions, need
clarifications. Ask question during Q & A.
• Write some problems that you are facing in your areas today
and try to ask questions at the end, related to those problems.
• Be safe wherever you are – be aware of safe exit route in
case of emergency, any tripping hazard.
• Enjoy Learning.
• Post training, identify some areas, issues, where you will
deploy these methodologies. Reach out to us for support.
• Be the ambassador of new tool, system in your plant,
function.
3
 Contents
• Concept, Key Principles and Benefits.
• Need for Kaizen - Various data, analysis
• Understanding Value and Non-value added ( Wastes )
activities.
• Identify and reduce, eliminate wastes.
• Definition of 16 Losses. Loss cost matrix.
• Losses and Why they occur.
• Route to Kaizen - Planning, preparation for Kaizen
launch.
• Kaizen generating ideas.
• Point and Flow kaizen.
• Kaizen bursts to improve Value stream.
• Process design analysis
• Process - Defect Matrix
• 5R 4
 Contents
• Some Root Cause Analysis techniques.
• Quality circle - What and Why
• 5W1H
• 7 Steps for carrying out Kaizen activities.
• Targets for major Losses as per JIPM.
• Master Plan for implementing Kaizen.
• Examples of various losses & many kaizen examples for
reducing, eliminating the losses.
• Kaizen event : Opportunities, Purpose, Planning, preparation
and conducting an event, Area selection matrix
• Ideas, practices to promote Kaizen culture. Leadership role.
• Reward and recognition
• A ‘Total Employee Involvement’ ( TEI ) model with examples.
• Employee Engagement Metrics.
• Examples, Case Studies. 5
 Faculty Profile
• I am an independent Management and Operational Excellence
Consultant . I am a Mechanical Engineer from Bengal Engineering
College, Shibpur”, Calcutta in 1986, Six sigma Master Black Belt
from Indian Statistical Institute, Lean Black Belt, TQM trained in
Japan, ‘CII Exim Business Excellence assessor’ by CII IQ.
• I have about 33 years of regional and global experience in multiple
executive roles. I have worked with both Indian and MNCs like
Anand Automotive, ABB, Saint Gobain, TATA Autocomp,
Kennametal and YG1. Some of the key positions held in my career
are Quality, EHS and WCM head in Saint Gobain-Grindwell Norton
Abrasives, Corporate Quality and Operational Excellence head in
TATA Autocomp, Asia Pacific Operational Excellence head in
Kennametal, Group Vice President Operations in Birla Precision,
Global Mfg Improvement head & Managing Director in YG Cutting
Tools India Operations.

6
 Faculty Profile
• Conducted training in India and outside – China, Singapore,
Thailand, Malaysia, Japan, Korea, Taiwan, Australia, Israel,
Germany. Trained more than 8000 people so far in last 28
years and implemented TQM, Lean Manufacturing, Six
Sigma, TPM, Constraint Management, Operational
Excellence at about 40 plants,12 countries in Asia and
Europe. Led, coached, mentored more than 2000
improvement projects that have generated financial benefits
( Top & Bottom line ) of more than 40 Million USD.
• I am an independent consultant since last July’2019.

7
 WCM DEFINITION

• WCM is a structured system, a set of tools,

techniques, and philosophies designed to
create an organizational culture of internal and
external customer focus, employee participation,
and continuous improvements to meet & exceed
customer expectations w.r.t. quality, cost,
delivery and service.

WCM : World Class Manufacturing

8
 What does it mean for the practitioner

A MANUFACTURING SYSTEM THAT ALLOWS MINIMAL USE OF

RESOURCES TO PRODUCE DEFECT-FREE PRODUCTS IN THE

SHORTEST POSSIBLE TIME WITH LEAST AMOUNT OF LEFT OVER.

9
 SMART WCM PLANT
CUSTOMER FOCUSED, METRICS DRIVEN, PROCESS
COMPLIED, INNOVATIVE

10
 Mission critical strategies
• Shared Vision
• Uncompromising values
• Visible Leadership involvement
• Fast cross the ‘valley of despair’
• Focus on Customer satisfaction
• End to End integration
• A Support system and the skill sets that enable us to
learn, lead & execute.
• Develop and focus on ‘Lead indicators’.
• Continuous improvements through kaizen
institutionalization
• Reward & recognition. Do not promote ‘mediocrity’.
11
WCM Benefits – Short term to Long term : P Q C D S
M & Customer confidence

Productivity

Quality

Cost

Delivery

Safety

Morale
12
 Management involvement

Sr. mgmt

Middle mgmt
Improvement
Frontline
supervisor Routine

Workmen

13
 What is Kaizen
• Kaizen is continuous improvement carried out by a person or small
group of persons in his / her / their area of day to day work.
• Mr.Masaaki Imai of Japan invented this concept.
• Originally a Buddhist term, Kaizen comes from the words, "Renew the
heart and make it good." Therefore, adaptation of the Kaizen concept
also requires changes in "the heart of the business” & corporate culture.
• It is a ‘way of life’ philosophy that every aspect of our life deserves to be
constantly improved.
• As opposed to the western brand of pragmatic “ why-fix-it-if-it-ain’t-
broke” philosophy, Kaizen extends a more optimistic philosophical view
: “Everything, even if it ain’t broke, can be made better”.

14
 Kaizen for
Focused Improvement
Objectives
• To improve the Production Efficiency
• To reduce the Manufacturing Cost

Target – Reduction of Wastages, Losses

15
KAIZEN is: Focused Improvement.
Improvement is different from Focused Improvement

Improvement Focused Improvement

Paper does not

burn in sunlight

Improvement is like sunlight: Paper burns

• Lot of energy, but dispersed Focused improvement concentrates the energy:
(wasted)
• Little energy, but concentrated and aligned

16
 Kaizen
• "KAIZEN means improvement. Moreover, it means
continuing improvement in personal life, home life,
social life, and working life. When applied to the
workplace KAIZEN means continuing improvement
involving everyone – managers and workers alike."

-Masaaki Imai

17
Kaizen in Japanese Society

18
 The Route to Kaizen

1. Establish the need

2. Create a sense of direction
3. Build a supportive climate
4. Launch the initiative
5. Maintain the momentum

19
Dependency Loop

20
Engage the Champions

21
 Look at Various data, records, sources

• Daily concerns at Gemba Huddle, meetings

• 4M Analysis - Man, Method, Machine, Method
• Daily Performance data
• Various Audits data
• Standing in a Circle, Waste Walk findings - 3 MUs
• Time Study, Work Study, Motion Analysis data, findings
• OEE Losses data ( Availability, Performance, Quality )
• 16 Loses data
• Customer concerns
• 5R opportunities 22
 Some Turn Offs - must change

1. I am too busy right now.

2. It’s a good idea, but the timing is wrong.
3. It is not in the budget.
4. We don’t do it like that here.
5. Theory is different from practice.
6. That’s a good idea BUT...
7. Isn’t their something else for you to do?
8. It isn’t our business. Let someone else think about it.

23
 Maintain Momentum
• Reinforce as often as possible
• Communicate results
• Measure progress
• Give support - financial, technical, verbal
• Start new initiatives based on the theme – refresh
notice boards
• Management commitment & stamina

24
Companywide Kaizen initiative will lead to big
change

25
Building Culture

26
 WHY KAIZEN ??
1. Emphasize common sense approach
2. Total employee involvement
3. In all processes, activities
4. Zero or negligible involvement of money !!
5. Not always required to get top management approval
6. Through ‘kaizen’ initiative, we would like to create platform for the
people to showcase their huge talent that they possess,
contribute toward the growth of the organization which will secure
our future and get recognized and rewarded for their contribution.
7. We would like to see that each individual can take pride of his /
her achievement.
8. Doing good job / performance and getting recognition /
appreciation is a natural human instinct, applicable for all age
group.
27
 Promote Kaizen culture
• Leadership Kaizen walk, monthly presentation
• More credit to self implementation
• Less focus on money for a kaizen. Decide a reasonable policy.
• Create awareness that it is a platform to showcase your talent,
• Have quarterly and yearly highest Kaizens and Best Kaizen
award schemes – different criteria, obverall.
• Promote Quality circle
• Internal competition
• Send best individuals and teams to participate local, national
competition

28
Kaizen format - keep simple to
start with
 KAIZEN EXAMPLE
BEFORE BOLT FIXING ELIMINATION KAIZEN AFTER TOP PLATE NOT
FIXED TO PRESS

TOP PLATE
FIXED TO PRESS

BALL PIN FIXED

IN TOP PLATE
BALL PIN FIXED FOR EJECTOR
IN 2ND PLATE LIFTING
FOR EJECTOR
LIFTING

2ND PLATE
FIXED TO TOP
TOP PLATE FIXED WITH PLATEN BY BOLTS PLATE
TOP PLATE NOT FIXED WITH PLATEN BY
BOLTS
ACTIVITY TIME
Time in
Secs
MOULD CHANGE TOTAL
TIME
700 Time in
Secs
600 542
1000
500 900
800 689
400
700
300 600
0
200
500 147
400
100 300
200
0 100
Before After 0
Before After

30
Another Kaizen format

31
Suggested Kaizen format

32
KAIZEN - Example
Co. Logo, Name

33
Kaizen

• Both Flow Kaizens ( System improvement ) and Process

level Kaizens / Point Kaizens ( Elimination of Wastes at
specific operation, area are necessary – one
compliments other.
• Flow Kaizen focuses on Material and Information flow,
Process Kaizen focuses on people and process flow.

34
 Point and System Kaizens
• Point Kaizens, Process Kaizens : focused, localized
kaizens to reduce specific waste, loss, improve methods
in a particular workstation, work area. Impact will be
small or big. Incremental improvements to the flow of
value – Q, C, D.
• System Kaizens, Flow Kaizens : Kaizens to make
systemic changes, improvement to improve operational
effectiveness and efficiencies. Impact is generally big.

“ Every day, every day, fix a problem or eliminate a

barrier to flow.” (Taiichi Ohno)

35
Definition of Value, Types of
Wastes, Consequences

36
 MUDA
What is MUDA ?
• Operation = Work + MUDA
• Work = Increases value of Production
• MUDA=Decreases value of Production
MUDA
MUDA
• Kaizen = Work

Work
Work

Operational Effectiveness = Work / ( Work+MUDA) X 100%

37
 Definition of Value

1) Customer must think the task is important

– Is the Customer willing to pay for it?

2) Task must physically change the product or

service
– Movement does not add Value

3) The task must be done right the first time

– Rework or Review Steps do not add Value

38
 Non-Value Adding Activities (8 Wastes)

• OVERPRODUCTION – Producing product or Processing information before or

more than required; producing without orders, in anticipation, extra copies; extra
storage for duplicate files/reports; sending hard copies of faxed material.
• WAITING - Waiting for tools, materials, drawings, information, quotations, etc.;
equipment waits for operator, material, downtime etc.; delays due to capacity
bottleneck, vacation, inadequate cross-training, different priorities. Person waiting,
observing or Machine waiting or Material waiting.
• INVENTORY / STORAGE - In excess of customer demand; excess Raw Material,
excess WIP, excess FG taking up capacity or space; stagnant information flow,
queues.
• TRANSPORTATION - Repeated handling and material movement; carrying WIP from
place to place, information that is relayed up/down the ladder; tracking/expediting
reports, paperwork movement.

39
Remember : DOWNTIME
 Non-Value Adding Activities (8 Wastes)

• Over PROCESSING - Over-Processing; taking unneeded steps to process parts;

more steps than optimum, reports with too much information; duplicate/triplicate
review/approval steps; excessive distribution lists.
• MOTIONS - Unnecessary motions; excessive walking; searching for tools, paper
work, drawings, supplies, faxes, etc.; confusing motion. Hand and leg motions.

• DEFECTS – Reworking; Inspection; Re-inspection, Repairing, Miscommunications,

Bad Information. Defect in Product, Service, Document, Information.
• UNTAPPED INGENUITY – failing to tap into the creativity and innovation of the real
experts (our people). Losing time, ideas, skills, improvements and learning
opportunities by not engaging or listening to our employees.

40
Remember : DOWNTIME
 Muda - Wastes

Cash is thrown straight into the trash can ! 41

 Overproduction – worst of all wastes

Operation 1 Operation 2

Supplied input Required input Output

= 12 / hour = 10 / hour = 10/Hour

Operation 1 Operation 2

After 1 Hour
42
 Overproduction – worst of all wastes

After 10 Hours

This is Hidden money

Operation 1 Operation 2
And for this hidden money ,
we spend additional money
in following forms ( Next Slide )

43
 Overproduction increases
Money spend for

- Energy
- Record keeping
- Documentation
- Tooling Cost
- Manpower
- Overheads
- Space for Storage
- Inventory cost

We incur huge loss and reduce profitability when we sell

obsolete items at higher discounts
44
 Overproduction
Causes
• MRP push rather than kanban pull
• Large batch sizes, Economic batch size
• Building to a forecast
• Looks better to be busy! Just in case reward
• High set up time
• Poor people utilization
• Local optimization
• Poor planning, scheduling, communication
• Cost accounting practices
Consequences
• Costs money – Labour, RM, Energy, Docu ments, Record keeping,
Tooling, Space etc.
• Creates inventory
• Obsolete, Discount sale
• Hides inventory/defect problems
45
 Inventory – RM, WIP, FG
Causes
• Production schedule not level
• Bottleneck process not controlled
• Inaccurate forecasting
• Line not balanced
• High cycle time, high lead time, high Set up time
• Push instead of pull, reward based on output
• Large batching
• Unreliable suppliers
• Management decisions
• Local optimization
Consequences
• Adds cost - Interest paid on the money invested to buy materials, Costs
to keep and manage inventory, cost of obsolescence, cost of price
erosion, cost of opportunity cost for making products
• Extra storage space required, Extra resource to manage
• Hides shortages & defects
• Can become damaged, obsolete. Shelf life expires
46
 Motion
Causes
• No standard operating procedure
• Poor housekeeping, workplace organization
• Poorly designed process
• Badly designed cell
• Inadequate training
• Large batch size
• Lack of communication
Consequences
• It interrupts production flow
• Increases production time
• Can cause injury

47
Examples of Motions wastes

48
 Waiting
Causes
• Shortages & unreliable supply chain
• Lack of multi-skilling / flexibility
• Downtime/Breakdown
• Ineffective production planning
• Quality, design, engineering Issues
• High cycle time
• High changeover time
• Lack of communication
Consequences
• Poor workflow continuity
• Causes bottlenecks
• Lost capacity, high operating cost
• Long lead times
• Failed delivery dates
49
 Transportation
Causes
• Badly designed process/cell, functional layout.
• Complex material flows
• Sharing of equipment
• Poor housekeeping
• Large lot processing
• Unleveled schedules
• Storage
Consequences
• Increases production time
• It consumes resource & floor-space
• Increases work in progress
• Potential damage to products
• Adds cost – Labour, Material handling,
Fuel
50
 Over processing
Causes
• Out of date standards
• Attitude - ‘Always done it like this’
• Lack of understanding of customer requirements
• Poor design, Overdesign
• Not understanding the process
• Lack of expert knowledge
• Lack of innovation & improvement
• Lack of standard operation procedures
• Inadequate, poor quality resources – 4M
Consequences
• It consumes resource – Man, Material, M/C
• It increases production time
• It’s work above and beyond specification
• Can reduce life of component
51
 Not right first time – scrap, rework
Causes
• Out of control/Incapable processes, high variation
• Lack of skill, training & on the job support
• Inaccurate design & engineering
• Work not standardized
• Machine inaccuracy
• Absence of mistake proofing
Consequences
• Adds costs
• It interrupts the schedule, adds to delays
• Consumes resources, Lost capacity
• Reduces customer confidence
52
Pictorial Understanding – Some Wastes

Overproduction, Storage

Overprocessing

Waiting

53
 Pictorial Understanding – Some Wastes

Motion

Transportation

X
✅

Defect

54
Service and Office Opportunities

55
 Remember – 7 Wastes : Manufacturing and
Administrative
7 Wastes –
Definition Administrative Manufacturing
“Muda”
1. Overproduction Generating  More information than  Producing product
more the customer needs to stock based on
output,  More information than sales forecasts
information the next process needs  Producing more to
than the  Creating reports no one avoid set-ups
customer reads  Batch process
needs right resulting in extra
now  Making extra copies
output
2. Transportation Movement  Retrieving or storing files  Moving parts in and
of material,  Carrying documents to out of storage
information and from shared  Moving material
that does equipment from one
not add  Taking files to another workstation to
value person another
 Going to get signatures  Moving patients to
and fro

56
 Remember – 7 Wastes : Manufacturing
and Administrative
7 Wastes –
Definition Administrative Manufacturing
“Muda”
3. Motion Movement of  Searching for files  Searching for
people, parts that  Extra clicks or key parts, tools, prints,
does not add strokes etc.
value  Clearing away files on  Sorting through
the desk materials
 Gathering information  Reaching for tools
 Looking through  Lifting boxes of
manuals and catalogs parts
 Handling paperwork
4. Waiting Idle time created Waiting for…  Waiting for parts
when material,  Faxes  Waiting for prints
information,  The system to come  Waiting for
people or back up inspection
equipment is not  Copy machine  Waiting for
ready  Customer response information
 A handed-off file to  Waiting for machine
come back repair

57
 Remember – 7 Wastes : Manufacturing
and Administrative
7 Wastes –
Definition Administrative Manufacturing
“Muda”
5. Over Efforts that create  Creating reports  Multiple cleaning of
Processing no value from the  Repeated manual parts
customers viewpoint entry of data  Paperwork
 Use of outdated  Over-tight
standard forms tolerances
 Use of  Awkward tool or
inappropriate part design
software
6. Inventory More information,  Files waiting to be  Raw materials
project, material on worked on  Work in process
hand than the  Open projects  Finished goods
customer needs  Office supplies  Consumable
right now  E-mails waiting to supplies
be read
 Unused records in
the database

58
 Remember – 7 Wastes : Manufacturing
and Administrative
7 Wastes –
Definition Administrative Manufacturing
“Muda”
7. Defects Work that  Data entry error  Scrap
contains errors,  Pricing error  Rework
rework, mistakes  Missing information  Defects
or lacks  Missed  Correction
something specifications  Field failure
necessary  Lost records  Variation
 Missing parts

59
 MURI = Strain
 Trying to use low precision equipment for
high precision processing
 Running machines beyond it’s capacities,
lowering its life
 People getting over tired through working
in strained postures, bad ergonomics, fatigue
 Doing work manually that ought to be done by
machines
 Strain due to poor design
 Increased work load due to non availability of
people to cope it
MURI in Machines :
 Vibration
 Noise
 Over heating
 Absence of lubrication
 Loose 60
 MURA = Uneven-ness, Inconsistency
 Happens only sometimes? Mura !
 Happens to only some people? Mura !
 Happens only some places? Mura !
 Ask “Why” 5 times !

Examples
 Variation in quality
 Unbalanced capacities of various machines
 People are too busy in one area & too idle in the other area
 Mixing up of Experienced & inexperienced workers wrongly
 Unevenness in provision of training and instructions
 Irregularity in tooling quality
61
 Think, Question Wastes
Waste Question
Overproduction Why are you producing more than is demanded by the
customer ? What storage problems and costs does it
cause ? Are you producing simply because you can –
because you have the extra time and resources ? How
does this affect the line downstream ?
Inventory Can you give a good reason for the extra inventory you
have on hand ? What about extra WIP ? Is WIP pile up in
certain areas, unbalancing the line ? What can you do
about this ?
Transportation Is all your current transport of materials really necessary ?
How far have materials or parts travelled from the previous
process ? How far to the next process ? Can better
process layout and / or storage solutions reduce your
transport time and distance ?
Waiting Why is delay happening ? Are you waiting for parts, next
machine to be ready, extra help to complete the job or
nothing to do ? What needs to change ? 62
 Think, Question Wastes
Waste Question
Extra Do you loose efficiency due to poorly functioning tools,
Processing machines ? Do they need repair or need redesign ? How
much processing is done that is overkill – over-gluing,
polishing parts that are never seen ? How of your time is
spent in rework ?
Motion How much walking do you do to complete an operation ?
Do you have to reach, bend, crawl, twist or otherwise be
uncomfortable to do processing or machine maintenance ?
How can you correct this ? What about those tools and
directions that keep getting misplaced ? How much time
do you spend looking for things ?
Defect What are the causes of poor products ? Are process
mistakes occurring too easily ? Are you getting poor
materials ? Are machines malfunctioning ? If you end with
scrap or pieces that need to be reworked, getting to the
root causes of errors will significantly improve your output
quality and quantity. 63
63
 Waste Walk

• Waste walk – Walk in the gemba by an individual or team at a

specified time to identify wastes with the objective of
eliminating them.
• You need to pick a dedicated time and area of focus. Pick a
process or an area to walk. It doesn't have to be your worst
process, just anything that has an opportunity to improve.
• As you walk the area, find as many examples of waste that
you can. Don't filter them on what you can fix and what you
cannot. Use the 7 wastes to describe and identify them. It's
not just waste, but the specific example of waste.
• Pick one or two things that you can eliminate and do it. Do it
immediately.

64
 Waste Observation sheet
Seven Forms of Waste
Observe What Assessment Questions
Waste Description
1: What is your production signal, Kanban, customer
Making more than is
Overproduction needed 1: Production arrangement order, etc.?
2: Why the actual output is over the qty. authorized?
1: What are the main defects in your area? 1: Trend of defects qty. and its % by break down?
2: What are the reworks in your area? 2: Trend of rework qty. and its % by break down?
3: How about rework area inventory? 3: Trend of complaint qty. and its % by break down?
Time and effort
Correction 4: How about scrap material quantity? 4: What is the position for the above items compare
spent fixing defects
5: How about your customers complaint goods? to the benchmark?
6: How about your process variation? 5: Do we need extra sorting or inspection?
7: Any Non-conforming goods?
1: How about the material movement in your
1: Are all those movement necessary?
area?
Excess moving or 2: Can we do anything to reduce the movement?
Transportation 2: If move parts and material back and forth?
transportation 3: Why move material back and forth?
3: How many touch points in your material
4: Can we reduce the touch points?
handling?
1: Are those motion value added?
Operator motion and its frequency, like:
2: All those motion needed?
Needless (non-value 1: Handling;
3: Can we do anything to eliminate part of those
Motion added) operator 2: Movement;
motions?
motion. 3: Turn around;
4: Can we do anything to simplify those motions, like
4: Bending, etc.;
tools / arrangement?
1: Waiting what?
People waiting for
2: How long?
Waiting material or Operator's idle time in operation
3: Waiting frequency?
instructions
4: Idle time % of total time?
1: What is the interval between two purchase
Workshop, warehouse and stockroom for:
orders?
1: RM;
2: How long does those material support your
2: Work in process (WIP);
Inventory Too much inventory 3: FG; operation/sales?
3: Enough space for those goods?
4: Purchased components;
4: Why the material stay there, waiting for what?
5: Consumable suppliers;
5: What is your frequency to update Supermarket?
1: All those steps needed?
Doing more work 65
2: Is it possible to eliminate, combine, simplify those
Over Processing than is necessary. 1: Process step in the area
steps?
 ‘Standing in a Circle’
• Identify a safe spot in the work area, mark a circle with chalk
or tape, stand there for hours ( min ½ an hour ), observe what
is going on in the workplace and learn through observations.
• Observe and identify issues, wastes – minimum 20. Small,
local issues, waste.
• Simply observe and write what you see, don’t comment or
discuss with others at this point of time.
• Don’t walk around so that you can see deeply.
• Write what you feel might be a problem, waste.

66
 Example - Checklist
What to look for
Cluttered Workspace
Illumination level
Machine Safe guards
Noise level
Restricted Aisle ways
Excessive "WIP" inventories
Not building to Customer Demand
Excessive rework
Machine Down
Waiting for decisions
Waiting for Machine
Waiting for Materials
No Operator at Machine
People leaving work area
Bottleneck not running
Excessive material handling
Process layout
Materials not at point of use
Identified Scrap/Rework areas
Is there Cross Training matrix
Question to ask your self
5S+1 is the area organized?
Are there lights out in the work area?
Are any of the machine safe guards broken?
Abnormally high?
Any dedicated aisles blocked?
Is WPO being followed?
Is it posted in area?
Is there too much Rework in work center?
Is machinery not working i.e.. "Broke"?
Employee waiting for decisions?
Is Employee waiting on machine i.e. "Idle time"?
Employee waiting for materials?
No operator in area?
Are Employees leaving work area?
Machine is Bottleneck and is not running?
Too much employee movement?
Does Process layout make sense?
Work area not arranged well?
Is WPO being followed?
Cross training Matrix present?
67
 Observe the process
• At this point, refrain from asking questions. Use your
eyes and your ears to identify wastes, abnormalities. If
you don’t understand what is happening, and really want
to ask the operator something, keep it brief. You don’t
want the operator biasing your observation.
• Describe the waste in a way that you can recall later.
This step can be rushed, but documenting something
illegibly, or that you can’t understand later doesn’t help.
• Check which type of waste this is. Don’t worry too much
about getting it ‘correct’. The categories are just a tool to
help inspire the observer.

68
 Observe the process
• Mark a priority. This is a judgment call of how much of an
impact the waste is.
• Mark the expected ease to correct. Try not to think of
solutions just yet, but some problems just seem easier
than others to resolve. This block and the priority will
help you identify the highest value projects to spend
resources on.
• Repeat - You may have to repeat the observation
several times until you don’t see any new wastes. You
will seldom see everything the first time through.

69
Observe - Waste in Operations

70
Observe - Waste in Operations

71
Observe - Waste in Operations

72
Observe - Abnormalities

73
Observe - Abnormalities

74
Stop. Don’t Look. Listen. Sounds That Shout Waste

• Although you can learn a lot by watching, sometimes you end

up identifying more waste by listening. Whether you are on
the shop floor or in an office, find a safe place to stand where
you won’t get in the way and close your eyes when teams are
in full swing. Then listen for the sounds of waste.
ON SHOP FLOOR
• Problem words
“HEY”, “WAIT”, “WATCH OUT”, “HOLD ON”. All these words
point to a problem. Even questions like, “Can I borrow
your…?”, help you identify that someone doesn’t have the
right tools for the job.

75
Stop. Don’t Look. Listen. Sounds That Shout Waste
• Hammers
Why are they being used? Often, they increase the risk of
injury and indicate that parts aren’t fitting right. In some cases,
there is a legitimate use for a hammer, but more often than
not, they are being used for ‘adjustments.’
• Grinders
In assembly areas, grinders should not be used because they
alter parts, possibly making them out of spec. In fabrication
areas, they point to a problem in an upstream process.
• Falling parts
When a part falls it presents a potential safety hazard and
can create quality problems if the part gets damaged. It also
indicates that installation or transportation methods aren’t
working correctly.
76
Stop. Don’t Look. Listen. Sounds That Shout Waste
• Vibrating Machines
Every machine has that sound it makes when something it is a little
‘off’. Think of the sound of a dentist’s drill. ZZZZZZZZZZZZZggrrrr.
That noise let your dentist know right away that something’s not
quite right with what she is doing. Even when the production team is
on a break, you can hear the sounds of waste.
• Fans and other motors
The cost adds up over time if machines are left running or lights are
left on.
• Hissing
Leaks in the air lines are often covered up by the sound of
production, but when the shop gets quiet, it can sound like a den of
snakes.

77
 Stop. Don’t Look. Listen. Sounds That Shout Waste

IN OFFICE
• Unanswered phones
• Angry voice
• Shuffling of papers
• Conversations with inanimate objects
• Loud passers-by

78
Idea Generation ( 3 MU’s & 4 M’s)
3 MU’s MUDA MURI MURA
(Waste) (Strain) (Inconsistency /
4 M’s Imbalance)
Man

Machine

Material

Method

79
16 Big Losses

80
 Losses and why they occur
• Loss is defined as wastage of material, money, time and
energy. Some of the reasons for the wastage can be
summarized below.
 Whenever an operation exceeds its standard timings
 Whenever an operation is intercepted
 Whenever a non-value adding operation performed
 Whenever a machine is idle when it should have given the
rated output
 When a machine and / or man do not give the rated output
 Consuming additional time, money, energy than the specified
norms.

81
 8 Big Equipment Loss
Type of Loss Definition

Breakdown Loss Loss of Machine’s capacity to function. It is time loss

( reduction in output ) and physical loss ( increase in
defective and rework ) arising from sporadic and
chronic failures
Set up and Time and physical loses due to set up and further
Adjustment Loss adjustment

Cutting Tool Losses incurred by stopping the machine for tool

Replacement Loss change
Startup Loss Loss incurred when machine starts but waits from run-
up until the processing condition have established
Minor stop and Idling These are losses resulting from stopping and starting
Loss and transient problems which require a machine to be
paused or idled for short period.
Speed Loss The loss arising from the difference between
machine’s design speed and actual speed ( less than
design speed ) at which it operates.
82
 8 Big Equipment Loss
Type of Loss Definition
Quality ( Rej, The physical losses ( defective and rework ) and the time
RW ) Loss losses ( to reprocess defective products acceptable )
created by defective and rework.
Shutdown Loss Time losses ( reduction in output ) incurred by shutting
equipment down deliberately for maintenance & the physical
losses ( defectives and rework ) when it starts up again.
7 Losses affect OEE, 8th one affects Utilization
5 Big Labour Losses
Type of Loss Definition
Management The loss in labour-hours occurring when operators’ time is
Loss wasted owing to management. Examples: Failure to provide
materials, spare parts, manpower resource, utilities, tools, work
instructions.
Motion Loss Losses are created due to unnecessary/excessive operator
movement and transportation, as a result of poor layout and
work organisation. Examples: Walking loss, wasted motion e.g.
unnecessary reaching and lifting etc.
83
 5 Big Labour Losses
Type of Loss Definition

Line This loss includes losses due to operators having to wait

Organisation around while others work because they do not have the
Loss necessary skills to operate multiple machines or processes,
and to unbalanced deployment of labour.
Logistics This loss is the wasted time that is experienced in the incorrect
Loss or inefficient delivery of raw materials, packaging or products to
and from the factory or the production line. Example: Incorrect
delivery of materials from supplier to store, late deliveries,
excessive handling of deliveries (double handling).
Measurement This is extra work in the form of frequent measurements and
& Adjustment adjustments that have to be carried out to prevent defective
Loss items from being made or passed on.

84
 3 Big Resource Consumption Losses
Type of Loss Definition

Energy Loss Energy loss is the input energy which cannot be used
effectively for processing (typically electricity, gas, or fuel oil).
Examples: Start-up losses, Idling losses.
Consumables, The cost of consumable items per unit of product produced. It
Die, Jig Loss includes expenses generated by replacing or refurbishing
broken or worn-out dies, jigs and tools, as well as the cost of
other supplementary supplies such as cutting & grinding fluid.
Yield Loss This is the total loss between the input of raw material and the
output of finished goods. It includes material losses in the
form of defective product, cutting debris, leaks, spills,
evaporation, product lost at startup, and the like.

85
Example – Loss Cost Matrix
Total Manufacturing Cost

Total Loss ( INR 1000 )

Cost Structure Production Cost
General
Variable Fixed

Interest Charge
Indirect Labour
Consumables

Direct Labour

Maintenance
Raw Material

Logistics cost
Admin. Cost
Repairs &
Power
Fuel
Loss Structure
Select
Shut down X 1400 Projects ,
Breakdown X X 2500 Kaizen
Downtime Set up X X 3300
event
Start Up X 320
Tool Change X X 440 based on
Performance Minor stop X X X 200 data and
loss Slow speed X X 800 Business /
Scrap X X X X X X 700
Quality Loss
Rework X X X X X
Customer
600
Management X X X X 1500 impact
Motion X 800
Labour
Line Organize X 650
Effectiveness
Logistics X X 530
Meas. / Adjust X X X X 800
Yield X X X X X X 350
Resource
Energy 800
Effectiveness
Die, Jig, Cons. X 250

l 86
 Effects Of Six Big Losses in
Equipment’s Productive Time
OEE ( Overall Equipment Effectiveness ) = Availability x Performance X Quality rate

Total Available Machine Time

Measured by
“Availability”
Equipment & Process Failures
Available Operating Time Downtime
Losses
Setup & Adjustments
Measured by
“Performance”
Idling & Minor Stoppages
Net Operating Time Speed
Losses
Reduced Speed
Measured
by
“Quality” Process Defects
Valuable Defect
Operating Time Losses
Startup/Setup Yield Losses
87
 Kaizen Goals for 7 Major Losses
Loss Category Goal Suggested Measures
Learn equipmemt and part mechenisms.
Zero.
Failure Learn how to analyse causes.
Zero for all equipment and facilities.
Study corrective and predictive maintenance.
Minimize. Review and standardize work.
Set Up Shortest Possible time. Common use of jigs, tools.
Single-step set up. Learn SMED, single touch operation.
Zero Analyze adjustment items by reasoning.
Adjustment Adjust to produce Non-defective Improve pecision and rigidity of equipmenmt,
right from the beginning, without trial parts and jigs.
Minimize.
Cutting blade / tool and
Reduce changes by extending Pursue machining theories.
Jig change
cutting blade/ tool life.
Zero.
Cutting blade / tool and
Adjust to produce Non-defective Pre-setting.
Jig adjustment
right from the beginning, without trial.
Study impacts of thermal displacement.
Minimize.
Start-up Pursue fluctuation factors for various
Reduce to zero or to PPM.
conditions.
Zero. Determine quantitatively.
Minor Stoppage
Zero for all equipment and facilities. Identify, analyse and eliminate minor defects.
Zero.
Reduce difference with design Review machining conditions.
Speed
specifications to zero. Study rigidity of equipment and jigs.
Pursue theoretical machining speed. JIPM, 1994
Minimize. Utilize PM analysis.
Defect and Rework
Reduce to zero or to PPM. Clarify standards and review criteria.
Value Stream Map - Steering Bracket : Material &
Information Flow

Customer
Requirement
12000 L
6400 R

Source – Learning to See 89

Identify, Reduce, Eliminate

90
 Some examples of wastes – VSM review
• Cycle times > Takt time
• Less than expected outputs, variations in output
• Imbalance line
• Disconnected processes
• Runner and Repeater items on the same path
• High defects
• High Down time, High Set up time
• High WIP at different stages
• Operators Waiting, Idling. Machines waiting.
• Poor Layout, Space utilization
• Lot of Movements, Motions
• Constant chasing at many processes, many expedites, recommits.
• Lack of Multi-skill
• Poor Machine-man ratio
• Big batch sizes
• Some NVAs inbuilt to the process over time – Correcting, De-burring, 100%
inspection, Sorting, Rework
• Lead time ( Suppliers to Plant, Plant to Customer, End-to-end ) high
• Poor Workplace organization, Unsafe conditions
• No time or focus for improvements and many more. 91
FLOWING RIVER ANALOGY

GAME PLAN
REDUCING INVENTORY EXPOSES PROBLEMS FOR
CORRECTION

GAME PLAN TO IMPROVE FLOW

REDUCE INVENTORY, EXPOSE PROBLEMS, CORRECT – USE BEST PRACTICES

INVENTORY

PROBLEMS

Wastes ( 3 MUs ) inhibits FLOW 92

 Continuous Improvement Lightning Bursts
/ Kaizen Bursts

Burst any idea as they become apparent!

93
Current State Analysis – identify wastes,
opportunities

94
Continuous Improvement through VSM

95
 Future state VSM – Steering Bracket

Source – Learning to See

96
 Visual Management - DAILY PERFORMANCE BOARD

Daily scrap trend

Daily plan achievement Daily Idle time

Daily rework trend Daily Breakdown hours

Daily Operator
Efficiency

Daily Set up data Daily Customer complaint

Daily Safety

97
Visual Management – Information centre

98
 Make problems on shop floor visible –
real time status
Examples of displaying Cell / Dept status live on shop floor;
STATUS BOARD
Concern

Sr No Machine no Availability
Break down Quality Safety Remarks
of resources

1 2000567

2 2000345

3 2000854

4 2000183

Symbols: Green circle for all ok, Red circle for not OK. This symbols will be of magnetic material
The machine no and remarks column need to be updated manually with white board marker

Status of each machine in a cell / line

can be updated on this board. If any
abnormality arises SWAT team to
address it and update the status of
action plan in action plan sheet. Which
should be review weekly during
GEMBA walk
99
Operation Analysis Table

100
 Map the process - Arrow Diagram of a PCB
Assembly shop
• Create a Process Map / Arrow Diagram of the area and then fill out the
Process Design Analysis Sheet

101
Process Analysis Design Sheet

102
 Summary Chart of Flow Analysis
• If you are observing complex processes, Process design analysis sheet may not
be detailed enough. In that case, we have to use the Summary Chart of Flow
Analysis which allows us to record data according to the types of activities that
occur in an operation : retention, conveyance, processing, inspection. This will
prepare us to identify areas of waste that might be eliminated. Out of four activities,
only processing is value added.

103
 Process – Defect Matrix : Example
Process Related Defects Machining Related Defects

High Also known as QA Matrix

Low 104
Defect – Cause Matrix : Example

Strong Correlation

Weak Correlation
105
 Kipling Method - 5W 1H
• Rudyard Kipling used a set of questions to help trigger ideas
and solve problems and immortalized them in the poem “Just
so stories” in 1902.
I have six honest serving men
They taught me all I knew
I call them What and Where and When
And How and Why and Who
• Use the Kipling questions at any time or when you need to get
an extra stimulus. They are good for unsticking creative
session, when people dry up and run out of ideas.
• They are also useful to help take different views when
defining the problem.
• You can also use it to ask questions when selecting an idea to
carry forward for further development. It is a structured idea
generating tool.
106
 5W1H – Some probing questions
WHAT
- What is the issue, problem ?
- What is being done ?
- What is the method,
material, machine ?
- What should be done ?
- What else can be done ?
-
HOW
- How is it being done ?
- How should it be done ?
- How can it be done in a
different way ?
- How frequently does it
happen ?
WHO
- Who is doing it ?
- Who should be doing it ?
- Who else can do it ?
- Who does it right ?
WHERE
- Where has it happened ?
- Where does it happen ?
- Where else can it be done ?
- Where else should it be
done ?
WHEN
- When does it happen ?
- When has it happened ?
- When can it happen ?
- When to do this ?
WHY
-Why does it happen ?
- Why has it happened ?
- Why to do this way ?
- Why to do this ?
- Why to do this there or then ?
- Why is it important ? 107
 Effective questions, investigations lead to
Improvement
• Analyzing WHO – can lead to : less people, more competent /
trained people.
• Analyzing WHAT : can lead to : eliminating, combining,
revising activity.
• Analyzing WHEN : can lead to reduction of lead time, change
in sequence.
• Analyzing WHERE : can we lead to change in line, m/c,
process, tooling, location.
• Analyzing WHY : can lead to eliminating an activity.
• Analyzing HOW : can lead to simplifying or finding a different
way to do, method.

These probing questions, investigations help us to avoid moving to an assumed solution.

They allow us to consider problem from a range of different angles.
108
 Specific use

• Business Process Improvement

• Problem solving
• Writing a problem statement
• Developing a Strategy
• Developing a Quality alert
• Implement new ideas

109
 Advantage

• Simple: no need for training or people trained in the

method to successfully ask these questions.
• Systematic: the key to success is to always ask all the
questions, each and every time.
• Versatile: it can be used equally well to design a new
process as to implement a corrective measure.
• Comprehensive: the method can be used to obtain a
360° view of the problem and detect the route to
resolution.

110
Part No – Quality Alert
Customer - Issue Date :

5W 2H Answer
What Happened Ball Pocket Deform and Crack at Journal face
Why is it a Problem Result into damage
When did it happen 15.02.2017
Who detected Machining Operator
Where detected After Machining
How detected Visually
How many 2 Nos. 111
Part No – Quality Alert
Customer - Issue Date :

5W 2H Answer
What Happened Rust
Why is it a Problem Can stuck while assembly
When did it happen 06.06.2015
Who detected Incoming inspector
Where detected At Customer end
How detected Visually
How many 1 Crate ( 50 Nos ) 112
 Four Ws & One H and Ask Why Five
Times
Ask the Question And Consider The Action
What is the purpose?
What

Eliminate unnecessary
Is this activity necessary? activity
Can it be eliminated?
Where is this being done?
Where

Where should we do it? Combine or change place

Ask Why Five Times

Why does it need to be done in this place?
When is this being done?
When

Why are we doing it at this time in relation Combine or change time

to other things? sequence
When should it be done?
Who is doing this?
Who

Combine or change
Why is this person doing this? person
Who should do it?
How is this being done?
Why are we doing it this way?
How

Simplify or improve
Is there a simpler or better way to achieve
method
the same result?
How should this be done?

113
 5R
• Refuse
• Reduce
• Reuse
• Repurpose ( or Recover )
• Recycle

 Applying the 5 R's to your business' waste management

and recycling strategies can positively impact the
outcome of your program by significantly reducing the
amount of waste your business generates.
 Before disposing of your waste, walk through each of
these steps.
114
 Refuse
• Learning to refuse waste can take some practice, but
incorporating this step into your business' strategy is the most
effective way to minimize waste.
• Talk to your procurement team about refusing to buy wasteful
or non-recyclable products.
• When working with vendors, refuse unnecessary product
packaging and request reusable or returnable containers.
• Making smarter purchasing decisions and setting standards
and expectations early in the process makes it easier for
organizations to “refuse” waste in the first place.
• Say NO to single use plastics.

115
 Reduce
• By reducing waste, we avoid the unnecessary use of resources such
as materials, energy& water. It means there is less waste to manage.
• Reduce the use of harmful, wasteful, and non-recyclable products.
Reducing dependency on these kinds of products results in less waste
materials ending up in landfill and the associated negative
environmental impacts.
• Always using the minimum amount required to avoid unnecessary
waste. For example, when printing a document, print double-sided to
cut your waste output in half.
• Other commonly used items businesses can focus on reducing include
single-use plastics, plastic packaging,organic waste & Styrofoam cups.
• Take a reusable shopping bag with you so you don't have to use a
paper or plastic bag from the shop.
• Take your lunch to office in a reusable container.
• Stop buying Non-essentials.
• Buy goods with little / less packaging.
116
 Reuse
• Keep items out of landfill. Always find a way to keep an item out of
landfill by keeping it in great condition, repairing it or up-cycling
when it breaks. Don’t throw away anything if you can still squeeze
some use of it.
• Reuse items throughout the workplace instead of buying new ones.
That saves you money and saves the energy and resources that
would have been used to make the new product.
• Begin by focusing on one area of your business at a time.
• Replace all of the single-use eating utensils, Styrofoam cups, water
bottles, and paper plates with compostable or reusable alternatives.
• Once you master one area, prioritize reuse for other products in
your facility like packaging food items, printer cartridges, cardboard
boxes, food containers, and rechargeable batteries.
• Make memo pads out of waste paper.
• Re-use envelopes
117
 Repurpose
• For every item that can't be refused, reduced, or reused, try repurposing
it. Many people in the green community refer to this method as up-
cycling. You may be surprised to learn how many common office
products serve more than one purpose.
• Try using wasted printer paper for scrap paper, cardboard boxes for
storing supplies, binder clips to hold power cords and chargers in place,
and even mason jars, coffee mugs, and tin cans for holding pens and
pencils.
• Designate an area of your office as an ‘Up-cycling Station’ for collecting,
storing supplies. Encourage your colleagues to add items to the station
they no longer need & check there before purchasing new supplies.
• Waste oils that can’t be refined for reuse in vehicles can be burnt for
energy recovery to reduce dependence on coal and imported oil.
• Energy recovery from waste, plastic to gasoline, anaerobic digestion of
organic waste to produce biogas etc.

118
 Recycle
• Last but definitely not least: recycle. It breaks material down to
its main component and produces new products
• Once you've gone through all of the other R's, recycling is the
most environmentally friendly waste disposal method.
• If your business doesn't already, start collecting cardboard,
mixed paper products, commingled materials ( plastics, tin,
aluminum, glass), newspaper, cardboard and magazines and
nickel cadmium and lead-acid batteries etc.
• You can buy products that are made from recycled materials.
This is called ‘Closing the loop’.
• Most companies are not aware about the amount of waste they
can reduce by establishing
an effective recycling program.

119
 Circular Economy
• A circular economy is a systemic approach to economic
development designed to benefit businesses, society, and the
environment. In contrast to the 'take-make-waste' linear model,
a circular economy is regenerative by design and aims to gradually
decouple growth from the consumption of finite resources.
• Circular systems employ reuse, sharing, repair, refurbishment,
remanufacturing and recycling to create a closed-loop system,
minimising the use of resource inputs and the creation of waste,
pollution and carbon emissions. The circular economy aims to keep
products, equipment and infrastructure in use for longer, thus
improving the productivity of these resources.
• All "waste" should become "food" for another process: either a by-
product or recovered resource for another industrial process or as
regenerative resources for nature (e.g. compost).
This regenerative approach is in contrast to
the traditional linear which has a "take, make,
dispose" model of production.
120
 Route Cause
Analysis
for
Problem Solving

121
Problem Solving Journey

• Identify Problems
• Prioritize Problem solving
- Pareto, Trend Chart,
Prioritization matrix,
Stratification
• Problem statement
• Project charter

• Brainstorming
• 4M Analysis
• Ishikawa Diagram
• Zero in on Root causes

• Countermeasure Plan
• Pilot
• Implementation plan
• Implement
• Standardize
• Sustain
122
 Known approaches for problem solving

• ‘A’ is traditionally used, as it requires no factual analysis

or observations

Symptom Remedy

• ‘B’ is scientific and methodical.

Symptom Root Cause Remedy

123
 Apparent Causes & Root Causes

Problem

Where do we spend
most of our time?
Symptoms Fix or Adjust

Apparent
Cause

Root Cause

Prevent or
Eliminate
124
 Contents
• Brainstorming
• 4 M Analysis
• Cause & Effect Diagram
• 5 Why , Tree Diagram

125
 What is Brainstorming ?
Brainstorming is a simple but effective technique for
generating many ideas of a group of people within a
short span of time to solve a given problem.

What is needed

• A group willing to solve a problem through team approach

• A Coordinator

• A meeting place

• Equipment

126
 Steps for Brainstorming

• Choose the topic

• Each member, in rotation, is asked for ideas
• Each member offers only one idea per turn,
regardless of how many he or she has in mind
• This continues until all the ideas have been
exhausted
• Ideas are to be recorded and displayed on
transparent sheets

127
Basic Rules for Brainstorming

• Defer evaluation

• Fantasize freely

• Generate quantity

• Build on ideas

128
Hurdles of effective Brain storming

• You are stepping in my Turf !

• Criticism.

• The difficult member

• Domination by more vocal members

129
 The 4 M Checklist
Man
 Does he follow standards ?
 Is his work efficiency acceptable ?
 Is he problem – conscious ?
 Is he responsible ? ( Is he accountable?)
 Is he qualified ?
 Is he experienced ?
 Is he assigned to the right job ?
 Is he willing to improve ?
 Does he maintain good human relations ?
 Is he healthy ?
130
 The 4 M Checklist
Machine (Facilities)
 Does it meet production requirements ?
 Does it meet process capabilities ?
 Is the oiling / greasing adequate ?
 Is the inspection adequate ?
 Is operation stopped often because of trouble ? (Mechanical /
Electrical)

 Does it meet precision requirements ?

 Does it make any unusual noises ?
 Is the layout adequate ?
 Is everything working in good order ?
 Are there enough machines / facilities ?
131
 The 4 M Checklist

Material
 Are there any mistakes in volume ?
 Are there any mistakes in grade ?
 Are there any mistakes in brand name ?
 Are there impurities in it ?
 Is the stock available adequate ?
 Is there any waste in material ?
 Is the handling adequate ?
 Is the quality standard adequate ?
 Is the layout adequate ?
 Is the work in process abandoned ?

132
 The 4 M Checklist
Method
 Are the work standards adequate ?
 Is the work standard upgraded ?
 Is it a safe method ?
 Is it a method that ensures a good product ?
 Is it an efficient method ?
 Is the sequence of work adequate ?
 Is the setup adequate ?
 Are the temperature & humidity adequate ?
 Are lighting & ventilation adequate ?
 Is there adequate contact with the previous & next process ?

133
 Ishikawa Diagram

• The Ishikawa diagram was developed by Dr Kaoru Ishikawa

during the 1960s as a way of measuring quality control
processes in the shipbuilding industry, in the Kawasaki shipyards.
• An Ishikawa diagram is a diagram that shows the causes of an
event and is often used in manufacturing and product
development to outline the different steps in a process,
demonstrate where quality control issues might arise and
determine which resources are required at specific times.
• A visual tool to identify, explore & graphically display, in
increasing detail, all the possible causes related to a problem or
condition to discover its root causes.
• Also called Fishbone and Cause and Effect diagram.

134
 Ishikawa Diagram – advantages

• Focuses team on the content of the problem.

• Creates a snapshot of the collective knowledge of the team.
• Creates a consensus of the causes of the problem.
• Builds support for resulting solutions.
• Focuses the team on causes, not symptoms.

135
How to prepare Cause and Effect Diagram

• Clarify the problem

• Gather members for discussion
• Conduct Brainstorming session
• Group the causes into 4M’s ( can be different
also )
 Man, Material, Machine, Method
• Draw the cause and effect chart
• Check for missing information
• Determine importance of significance of causes

136
Structure of a Cause and Effect Diagram

2 2
6
6
5
4 4
3 1
5 4 6
5

2 2

1.Effect, Problem 4.Large Bones

2.Main Groups 5.Middle Bones
3.Spine 6.Small Bones
137
For Product or Process Based Problem

138
For Transactional Problem

139
Example of a Product Defect C & E

140
 ZERO IN ON ROOT CAUSES
 Once the diagram is complete , discuss the relative
importance of the causes and short list the important root
cause. Use Cause and Effect Correlation matrix.
 We may have to review the actual process
or re-check also. Go to Gemba,
observe, test etc.

 Trials may be conducted.

 Consensus or rating may follow.

 Conduct 5Why analysis on the shortlisted causes. Verify

at every stage.

141
 Capture All Possible Causes and
Validate for the Root causes
How To Identify All Possible Causes and Getting to the Vital Few Causes
– Prioritize!
Process Experience and
Data Analysis Process Mapping
Observation

4M Analysis FMEA Process Map

Cause and Effect Analysis
List Of All Diagram Stratification
Xs C & E Diagram

Prioritized List Physical &

Of All Xs by Statistical
Validation Validation

Prioritized List of Root causes

142
 Cause & Effect Matrix - Example
Classification Cause Effect on
ID Defect
Method
1 Steel relief hole undersize 5
2 Shrink fitting method 3
3 No standard on lapping allowance 5
4 Wire cut marks exist 9
5 Ovality / Run-out of steel relief hole high 9
6 Worn out / bent bore gauges 5
7 Lapping pin not sharp 9
8 Drilling of back relief angle on bore 9
9 Sulphur shrinkage 3
Material
1 Dimensions of grinding wheel 3
2 Drill cutting edge not sharp 9
Relationship Rating:
Very Strong…..9
Strong………...5
Moderate……..3
Weak………….1 143
 Cause validation plan - a must activity
Validation Plan for potential root causes
S.No Potential Root cause Validation WHO WHEN
method

Different methods of validation of potential root causes:

Gemba observation
Process validation
Statistical analysis like test of hypothesis
Trials / Experimentation

144
 Validation Plan example

Validation methods : Physical / Workplace verification / checks, Process observation,

Interviews, Data analysis, Trial, Test.
145
Validation Evidence
Effect / Problem – ID defect in a Die Used in the manufacture of spark plug component
Potential cause - Run out variation in lapping pin due to wheel not dressed properly

Recommended Process
• Steps for Dressing the wheel
Validation Outcome:
Significant.
•Observed in the last 2 batch,
(10th july to 31st Aug, Wheel • Irregularity on the surface of
had irregular surface. the grinding wheel
•This has led to a run out • Set the dressing wheel
variation of 0.05 on the lapping
pin. Hence this is a significant attachment as shown.
root cause.

Wheel dressing

146
“The Five Whys” and Mile-Deep Thinking

147
 Five Whys method

 Encourages ‘mile-deep’ thinking

 Uncovers deep causes of problems
 Identifies potential system-level causes of problems
 Conventional problem solving stops asking WHY
when the answer is WHO. Blaming a WHO instead
of a WHAT assures that investigation will not
uncover deeper and SYSTEM wide sources of
problems but will focus only on local and superficial
causes.

148
 5 Why – miles deep analysis

Q. Why did the machine stop ?

A. There was an overload and the fuse blew.
Q. Why was there an overload ?
A. The bearing was not sufficiently lubricated.
Q. Why was it not lubricated ?
A. The lubrication pump was not pumping sufficiently.
Q. Why was it not pumping sufficiently ?
A. The shaft of the pump was worn and rattling.
Q. Why was the shaft worn out ?
A. There was no strainer attached and metal scraps got in.

Test answer - Ask, "If I remove this, will the previous answer go away?”
149
5 Why Analysis – Tree diagram

150
 Example – A tree diagram
Primary Effect WHY 1 WHY 2 WHY 3 WHY 4 WHY 5
Since the wire got jammed Sensor wire was not Lack of
while lifting the work head properly clamped to awareness on
from the machine along facilitate lifting without lifting the
Sensor Cable with sensor damage workhead
got cut Pulley was rotated along
Lack of
Wire got entangled with the cable while lifting
awareness on
around the pulley the work head from
setting gap
machine
Lack of
awareness
Feeler is made of
steel which is Recommended
Sensor harder than the by manufacturer
Damaged While setting the gap sensor head
between head & ring, Design
Feeler rubbed against the
Feeler was pulled out Insufficient space constraints
sensing face of the sensor
Sensor head rapidly & the Feeler had for accessing (Compulsory
got damaged burr head area while dismantling of
setting the gap sensor assembly
between head & while
ring replacing/servicin
g brake assembly)
Chips got entangled Chip entry was
No shielding for sensor Not taken care
between sensor head & not anticipated
head from chips while designing
ring during designing
151
Take countermeasure on the Last Why

152
 Quality Circle – What, Why
• A quality circle is a group of workers who do the similar work, who meet
regularly to identify, analyze and solve work-related problems. Self
directed team with 3 to 6 members. They meet regularly on company
time and are trained with Basic QC Tools.
• The concept of the Quality Circle is based on “respect for the human
individual”. The concept is based on the premise that the people
who do a job everyday know more about it than anyone else and
hence their voluntary involvement is the best way to solve their work
related problems.
Objectives
• To improve the team skills, capabilities, confidence and creativity
through education, training, and participation.
• To improve the product quality and the productivity of the organization.
• To explore the hidden potential of the individuals and drawing out the
infinite possibilities.
• To create a healthy work environment such that employees find the
place worthwhile to work 153
 Quality Circle Project steps
• Teams to follow Basic QC Tools steps :
 Data Collection
 Pareto / Stratification / Trend charts
 Brainstorming
 Cause and Effect Diagram
 5Why
 Validation
 Countermeasure / Improvement plan for the root causes
 Implement
 Monitor performance
 Benifits
 Learning, Horizontal deployment opportunities
 Next project
• Appoint a coordinator, Quality circle steering committee.
154
 Focus on Mistake proofing
• Mistake proofing is the general translation of Japanese
term Poka-yoke, derived from yokera ( to avoid ) and
poka ( inadvertent errors )
• The underlying philosophy of mistake-proofing
recognizes that –
- People forget and make errors
- Machines and processes fail and make errors
- The use of simple mistake-proofing ideas and methods
can eliminate both human and mechanical errors.

155
 Defects – Errors - Conditions
• All ‘Defects’ are created by ‘Errors’
• Error is any deviation from the intended process
• Not all Errors result in Defects.
• ‘Errors’ occur when necessary ‘Conditions’ required for
successful processing is absent

Defects Errors Conditions

156
 10 most common errors category
1. Omitted Processing - Leaving out one or more process steps
2. Processing error - Process operation not performed according to the
standard work procedures.
3. Wrong work-piece set-up - Using the wrong tooling or setting machine
adjustments in correctly for the current product.
4. Missing parts - Not all parts included in the assembly, welding, or other
processes
5. Operations errors - Carrying out an operation incorrectly; having the
incorrect revision of a standard process or specification sheet.
6. Wrong part - Wrong part installed in assembly
7. Processing wrong work-piece - Wrong part machined
8. Adjustment , Measurement error - Errors in machine adjustments,
testing measurements or dimensions of a part coming in from a
supplier.
9. Wrong tools and jigs - poorly designed jigs, or wrong or damaged tools
10. Errors in equipment maintenance or repair: Defects caused by incorrect
repairs or component replacement. 157
 Anticipating errors – High risk condition
Common conditions where mistakes are likely
• Adjustments
- Employees have to adjust the equipment or part to complete a step
• Tooling and tooling changes
- The use of perishable tools or tools that must be changed between
runs.
• Dimensional specification / critical conditions
- Operations which require the use of measurements to position a part in
operations or situations which require operations to be performed within
designated critical conditions ( e.g. Speed, Pressure, Temperature etc )
• Many parts / Mixed parts
- A process that require a large number and variety of parts

158
 Anticipating errors – High risk condition
Common conditions where mistakes are likely

• Rapid repetition
- Processes that require an operation to be repeated in rapid succession.
• Very high volume
-Processes that require an operation to be repeated under extreme time
pressure.
• Environmental condition
- Processes that require tight control of the environment inside or outside
of the equipment
• Asymmetry
- Operations that use a tool whose opposite sides appear identical but
are actually different in size, shape or relative position.

159
 Anticipating errors – High risk condition
Common conditions where mistakes are likely

• ‘It is ok to have few mistakes’, ‘we don’t get credit for good work’
culture
• To many steps
• Extreme time pressure
• Inadequate written standards
• Leadership accept mediocrity
• Conflicting interests, priorities

160
Poka-yoke strategies and their effectiveness

Containment – Identify defects before Good

they move to next operation.

Detection – Detect defects within Better

operation

Prevention – Makes the occurrence of Best

errors impossible

161
 Poka-yoke system functions
• A Poka-yoke system possess two functions –
- It can carry out 100% inspection
- If abnormalities occur, it can carry out immediate
feedback and actions
• Two Poka Yoke System approaches are utilized in
manufacturing which lead to successful zero defect systems:
– Control Approach
• Shuts down the process when an error occurs.
• Keeps the “suspect” part in place when an operation is
incomplete.
– Warning Approach
• Signals the operator to stop the process and correct the
problem.

162
Two approaches

163
 Error Proofing: Mechanical Solutions

• Eliminate the Condition • Standardize and solve

• Guide/reference/ • Critical condition indicator
interference rod or pin • Detect delivery chute
• Template • Stopper/gate
• Limit switch/microswitch • Sensor
• Counter • Error proof your error
• Odd-part-out method proof device
• Sequence restriction • Redesign for symmetry
• Redesign for asymmetry

164
 Example
 Limit switch or microswitch - an electrical device or instrument that,
with a light contact on its antenna section, can confirm the presence,
position, dimension, breakage or degree of use (wear) of a part, tool, or
fixture. They are also called proximity switches, photoelectric switches,
and touch switches.

Example:
buzzer
Holes were not being drilled to the
appropriate depth. Two limit
switches were mounted on the drill
press. Faulty drilling is indicated if switch 1 confirms
limit switch 1 is released before limit beginning of drilling
switch 2 has been tripped
(indicating the start of drilling limit switch 2 switch 2 confirms
without penetration). A buzzer is penetration
sounded to alert the operator.
limit switch 1

165
 Example
• Counter - an indicator that keeps track of a number - the number of
parts, turns, strokes, output, or abnormalities of a given machine or
operation.

Example:
In a process where parts are manufactured for
several different models, ten holes are tapped on
each work piece, using a single-spindle drill press.
Before Improvement: The operator had to visually
check and count the number of holes they had
tapped. This method of control relied strictly on the
workers’ vigilance and tapping was omitted now and
then.
clear button
After Improvement: A counter was added to the
tapping machine. The operator clears the counter for counter
each work piece and checks that the number of taps
is correct for the current model. Although this
amounts only to a method for assisting the vigilance
of the operator, it almost completely eliminates
omissions of tapping.
166
 Example
• Sensor - an electrical device or instrument that detects and
responds to fluctuations in characteristics related to quality, safety or
productivity. A sensor can confirm with a high degree of precision the
presence and position of a part, tool, or fixture and / or detect a
break, damage or wear.

A B
light passes light does not
through pass through

motor
Example:
Parts in a process were not being notched. A photoelectric detector was
installed to determine if each part had been notched successfully. The parts
are rotated, and if any light is detected the notching was successful. If no
light is detected, the part is identified as un-notched.

167
 Error Proofing Solution Test

• Is solution:
– Durable?
– Effective?
– Easily Maintained?
– Practical?
– Reliable?
– Easily Implemented?
– Have Real Lasting Merit?
– Cost Effective?

Any “NO” answer, requires additional investigation

168
Zero Defect Framework – An Indian company

169
Error Proofing means less dependency on
human knowledge and skill

170
Example of a company – Zero Defect Target

171
 Start the journey toward Poka-yoke
• Create a detailed process flow chart of every operation in a
process, no matter how small.
• Review each step to determine where human or machine errors
are likely to occur – this can involve the 5 Whys.
• Once every potential error is found, work through the process to
find the root cause.
• Design solutions in the process to eliminate the risk of the error
ever happening. This can include eliminating the step or replacing
it with a mistake-proof step.
• If the team cannot eliminate the step that involves the potential
error, they can come up
• with ideas to minimize its impact should an error occur. This can
include establishing inspection methods or setting strong
parameters on the functions of a step so that errors are easily
detected.
172
Summary

173
 Losses dealt by TPM Kaizen Pillar team
• KK Pillar deals with mostly those losses which are not handled by other
pillars like Quality, Safety, Plant Maintenance etc.
• Data collected from different sources, prioritize and assign projects to
teams based on highest losses.
• Usually KK ( Kobetsu Kaizen ) Pillar deals with the following losses –
 Set up
 Tool Change
 Start up Losses
 Minor Stoppages
 Speed loss
 Management loss
 Motion loss
 Line Organization loss
 Measurement and Adjustment loss
 Tools, Jigs and Adjustable loss
 Yield loss
174
 Sources of data
• OEE related losses data from Production and Inspection
records.
• Cost related losses such as spares, coolant, lubricants are
collected from Maintenance department.
• Tool losses and consumables are collected from relevant
departments.
• Vendor related quality defects, management loss and
logistics loss collected from Office TPM team.
• Operating motion loss and line organization loss by
Industrial engineering team.

175
 7 Steps for carrying out Kobetsu Kaizen
activities
Step Details Activity
1. Select and register topic.
Select Improvement
Step 0 2. Form project teams.
topic
3. Plan activities.
1. Identify bottleneck process.
Step 1 Understand situation 2. Measure failures, defects & other losses.
3. Use baseline ( benchmark ) to set targets.

1. Thoroughly study and expose abnormalities

Expose & Eliminate
Step 2 2. Restore deterioration & correct minor flaws
abnormalities
3. Establish basic equipment condition
1. Stratify and analyze causes
2. Apply analytical techniques ( Why-why, C & E,
Step 3 Analyze causes Tree etc )
3. Conduct experiments, apply specific
technology, make prototypes
1. Make improvement proposals
2. Compare cost effectiveness of alternate
Step 4 Plan Improvements
proposals and make budget
3. Check for adverse effect, disadvantages

176
7 Steps for carrying out KK activities
Step Details Activity

1. Carryout improvement as per plan

Implement 2. Perform tests, trials
Step 5
improvements 3. Provide WI on improved equipment,
operating conditions

1. Evaluate results, trends.

Step 6 Check results 2. Check whether targets have been
achieved, if not start from 3 again.

1. Prepare inspection and work standards

2. Make drawings and feed information to
Step 7 Consolidate gains Development management pillar
3. Train operators and others concerned to
sustain the results

177
Pillar Implementation – a Company case study

• Pillar Policy
• Background
• Aim
• Basic Concept – Flow diagram
• Targets
• Master plan
• Kaizen approach
• Few results, trends

178
 Pillar Policy

• Maximize overall effectiveness of equipment, processes,

and plants through elimination of losses and
improvement of performance.

179
Background

180
Aim

181
REDUCE TOTAL PRODUCT COST BY 30 %
LOSS COST TARGET
Note : Major RM Price Constant

182
 REDUCE TOTAL PRODUCT COST BY 30 %
Loss Cost Matrix for 2004 - 05

Target for 2006-07 : 50 % of the Total Loss Cost Reduction

EL – Existing losses , NL – New losses Rs in Millions
183
Basic Concept

184
 Targets

Targets Responsibilities
Better
Target -
KPIs UOM Current Prime Supporting
3 years

OEE Overeall % 66 85 KK JH, PM

Output per man day Kg 127 240 KK JH, PM
Process Scrap % 3.2 0.5 QM KK, JH
Overall Inventory Days 48 25 OTPM KK, JH
Power Cost Units / Kg 3.2 2.1 KK PM, JH

Fuel Cost Rs / Kg 7.6 3.2 KK PM, JH

185
Master Plan

186
LOSS COST MATRIX of One Operation

187
 KAIZEN APPROACH

HORIZONTAL
DEPLOYMENT
TEAM

Prioritize – Based on Company Lost cost Matrix data > Major, Medium, Minor
TVS RUBBER
MAJOR RESULTS

189
MAJOR RESULTS

190
MAJOR RESULTS

191
Approaches, Methods to reduce

some Major losses

192
 Equipment Failure Losses
• Breakdown Analysis : Pareto, Trend Chart, Why-Why, Basic
QC Tools
• Preventive Maintenance
• Autonomous Maintenance
• Predictive Maintenance
• Skill Up-gradtion
• Spares Parts Management
• Analyze and correct any design weakness in machine.

193
 Set up Losses
• Follow all the steps of SMED training material
• 4W 1H
• ECS ( Eliminate, Combine, Simplify )
• Convert Internal to External, Why-why

• Reduce Internal activities time, Investigate all steps and methods.

• Investigate purpose, causes of various adjustments

• Standardization
• Motion analysis, Work Place organization
• Operator Qualification

194
 Analyze Operator
Movement
Layout person – movement throughout
the setup or an Operation - Spaghetti
Diagram MAKE NOTES:
1. Start
2. Remove old work
4. Get new work
6 6. Get tooling
8. Check other
machine
12

10 751931311 15
8
14
2 4
Special Note:
Each destination has a termination, notice that each time the operator 195
returned to the work bench there is corresponding number
 Spaghetti Diagram
- Analyze and Reduce Motion Loss

196
 Tool and Jig Change Losses
Causes, Approach
Reasons
Steady Wear Approach from Autonomous Maintenance
• Cleaning Holders
• Fitting Methods
• Tightening Torque
• Method of pouring coolant
• Chip Breaker
Breakage Approaches from Inherent Technology
• Material
• Shape
• Chip Breaker
• Study of Machining order Work with Die, Jig, Tool
Chipping / Manufacturers to improve Tool life
Approach from Diagnostics
Chatter Mark • Vibration measurement wrt to various cutting conditions
• Frequency analysis
• Study of Rigidity
• Study of resonance with other rotary units
• Study and Optimization of Speed, Feed, Depth of cut ( DOE )
197
KAIZEN – Medium Change Loss time

Under Tool and Jig Change Loss category 198

 Start up Losses
Method Actions
Enforcement of real- • Size variation of workpieces
state examination ( Time • Time until stabilization of cycle time
series data at the time of • Cp value
start up ) • No of dimension adjustment / compensation
• Tool destruction
Examination of working • Types of oil
oil / lubricating oil • Supply pressure / temperature of lubricating oil
• Degree of contamination
• Relation between oil temperature and cycle time
Adjustment of thermal • Occurrence portions
displacement occurrence • Setting a dial gauge upon completion of work,
checking the size changes during morning set up
time.
Basic Countermeasures • Restoration measures
• Trial and Error repetition of tests
- Lubrication pressure / temperature control
- Types of working oil
• Improved method to minimize thermal displacement
199
 Minor Stoppage Losses
Steps Actions
1. Understand present status • Where they occur, how many, how frequently, which
– Survey actual condition of products, when and in what condition
phenomena
2. Analyze performance
• Stratify phenomena
• PM analysis ( QM Pillar )
• List all possible abnormalities
3. Identify, Restore • Remove tags after correction
• Keep equipment, machines • Check during Autonomous Maintenance activity
clean • Verify / validate and corrective, preventive actions
• Attach tags
4. Verify results
• Verify effects
• Identify problems to solve, to
achieve zero minor
stoppages
5. Study Optimal conditions • Pressure, vibration, sensor mounting, chute shape,
• Compare with design chip disposal, coolant condition, clearance, accuracy
conditions of each part, fitting accuracy, acceleration &
• Improve design weakness
Deceleration timing, air blow condition etc. 200
 Minor Stoppage Losses

Steps Actions
6. Longer MTBF
• Analyze, increase life of parts with
shorter life
• Correct sources of contamination
7. Challenge to operation with • Fixation of fluctuating factors, prediction of
minor stoppage changes, automatic adjustment and restoration
of variations.

201
KAIZEN – Minor Stoppage Loss
 Speed Loss
• Run all operations at right, optimum Cycle time
• Don’t reduce Cycle time by changing parameters, cutting conditions
without Design of Experiments.
• Regularly monitor Cp values
• Chip breaker, Chip evacuation
• Operator qualification
• Implement Autonomous Maintenance
• Reduce Minor stoppages
• Reduce defects
• Trial and error for reducing cycle time
• Monitor problems in case of speed increase – Minor stoppage, Defects,
Deterioration of Cp values
203
 Quality Losses
• Root cause analysis – 7 QC Tools, 5 Why, PM ( Phenomena –
Mechanism ) Analysis, 5W 1 H, Set up analysis etc.
• Preventive methods – DFMEA, PFMEA, Quality Plan, SPC,
MSA, Poka-yoke, AndOn, Automation, Quality Alert, Operator
Qualification, OPL etc.
• Six Sigma

 FMEA : Failure Mode and Effect Analysis ( D – Design, P – Process )

 SPC : Statistical Process Control
 MSA : Measurement System Analysis
 OPL : One Point Lesson

204
KAIZEN – Line Organization Loss

205
 Adjustment Loss
Analysis of Adjustments
Identify reasons for Present adjustments
• Physical Phenomena
• Location
• Operator
• Degree of adjustment
• Time of adjustment

• Poor Skill
Analyze the causes • Insufficient rigidity
• Position location
• Mechanical deficiency
Find the root causes • Insufficient standard
• Imprecision of Jigs, Fixture,
Cutting tools
Take Countermeasure • Dimension from reference
plane not standardized
• Accumulation of errors
Review the results

Horizontally Deploy
206
KAIZEN – Adjustment Loss

207
KAIZEN – Energy Loss reduction

208
KAIZEN – Energy Loss reduction

209
KAIZEN – Yield Improvement

210
KAIZEN EXAMPLE – Change over time reduction
BEFORE BOLT FIXING ELIMINATION KAIZEN AFTER TOP PLATE NOT
FIXED TO PRESS

TOP PLATE
FIXED TO PRESS

BALL PIN FIXED

IN TOP PLATE
BALL PIN FIXED FOR EJECTOR
IN 2ND PLATE LIFTING
FOR EJECTOR
LIFTING

2ND PLATE
FIXED TO TOP
TOP PLATE FIXED WITH PLATEN BY BOLTS PLATE
TOP PLATE NOT FIXED WITH PLATEN BY
BOLTS
ACTIVITY TIME
Time in
Secs
MOULD CHANGE TOTAL
TIME
700 Time in
Secs
600 542
1000
500 900

400
800 689
700
300 600
0 500
200 147
400
300
100
200
0 100
Before After 0
Before After

211
KAIZEN Example SAMPLE FOR MOULD CHANGE OVER TIME REDUCTION

212
Loss Analysis by KK Pillar

FINISHED
PRODUCT

MOULDED RUBBER PART

WITH EXTRA RUBBER
213
 Kaizen – Trimming Loss reduction
TRIMMING LOSS REDUCTION BY TRANSFER HOLE MODIFICATION

214
 KAIZEN Example FOR TRIMMING LOSS REDUCTION
TRIMMING LOSS REDUCTION BY SINGLE PART TO TUBLER PART

215
KK Objective – Capacity Enhancement of Equipment

216
Kaizen – Capacity Enhancement

217
KAIZEN SAMPLE TO ENHANCE THE CAPACITY OF EQUIPMENTS

218
KAIZEN Example – Yield Loss reduction
Co. Logo, Name

219
Near Miss Kaizen

220
Safety Poka-yoke

221
Unsafe Condition Elimination Kaizen

222
 QUALITY KAIZEN – One Example
KAIZEN THEME : TO ELIMINATE TEARING IN PRODUCT ABC
MOULD DESIGN
BEFORE AFTER

While releasing the loose sleeve No loose sleeve, (ie) product shape is
from the product, groove area incorporated with the mould plate itself.
of the product got teared
PPM Rejection Trend – Product ABC

250000

200000

150000

100000

50000

0
Apr'03 Dec'03 Jun'04 Jul'04 Aug'04
223
MTBF KAIZEN
Co. Logo, Name

224
MTTR KAIZEN

225
 OTPM - Kaizen Sheet - Process Loss Reduction
SUPPLIERS’ BILL PROCESSING / PAYMENT
BEFORE AFTER
P.O. AMENDMENTS

USERS REQUISITION
USERS VENDOR
OFFER SUPPLIERS DOCUMENTS SUPPLIES
BILLS
CHEQU
REQN. PURCHASE SUPPLIER STORES ACCOUNTS E
USER
P.O.
ENQUIRY MISMATCH BILL CERTIFICATION

ACCOUNTS CHEQUE TO
VENDOR

RESULTS /
REDUCTION IN SPEED/TIMING LOSSES & COST
LOSSES
BENEFITS

RESULTS / BENEFITS BEFORE AFTER

11 4
94- 95 97- 98
NO. OF ACTIVITIES A C TI VI TY TA R GET 9

A C TI VI TY- A C TU A L 11 9

C OS T- TA R GET 16 4

C OS T- A C TU A L 20 16

COST (RS. 000) 20 15 A C T IVIT Y T A R GET

A C T IVIT Y-A C T UA L
C OST -T A R GET
C OST -A C T UA L

226
 KAIZEN
THEME : LOSS NO.16

TOREDUCE THE PROCESSING LOSS STRUCTURE TEAM USI/ KAIZEN STARTED

TIME IN BILL ACCOUNTING JUN-2008
AREA PURCHASING COST REDUCTION Sec. Cell

BENCH MARK : 100 Hrs./Month Negotiate with Alternate Alternate Bulk Revenue Logistics M/s.RP, KBR KAIZEN FINISH
Existing Supplier Sources Material Purchase Savings Costs
SEPT-2008
TARGET : 10 Hrs./Month
PROBLEM / PRESENT STATUS : BENEFITS
Reduction in Office Man Hours.
Presently we are getting around 1250 bills / month from
(1 clerical person surrendered)
60 Job Workers - against open orders.
AIM : To reduce the processing Time for accounting & Payment Savings : Rs.1,00,000/Annum
IDEA : To get a single consolidated bill / month
100 HRS
BEFORE CLUBBING INWARD AFTER
DOCUMENTS

10 HRS

1250 60
Bills/Month Bills/Month
JUNE SEP
HORIZONTAL DEPLOYMENT
Not Applicable

227
 KAIZEN
THEME : LOSS NO.16

TO BRING DOWN LOSS STRUCTURE TEAM XYZ KAIZEN STARTED

PROCUREMENT
Warehouse FEBRUARY-2008
COST OF T.R. DIES PURCHASING COST REDUCTION
M/s.SK, PC KAIZEN FINISH
BENCH MARK : INR 51245/- Negotiate with Alternate Alternate Bulk Logistics
Existing Supplier Sources Material Purchase Costs TM & NP MAY-2008

TARGET : 10% BENEFITS

PROCUREMENT COST REDUCTION
PROBLEM/PRESENT STATUS:
IDEA : LOCALIZATION for PRICE
PRESENTLY FLAT THREAD Rs.14 Lacs
ROLLING DIES ARE REDUCTION
PROCURED FROM - JAPAN Rs.6.5 Lacs

BEFORE NEGOTIATIONS AFTER

INR 61245/ INR 44000/

PAIR PAIR HORIZONTAL DEPLOYMENT
TO BE IMPLEMENTED IN
_______ ALSO.

SAVINGS ACHIEVED INR 7245 / Pair TOTAL BENEFIT :

ANTICIPATED SAVINGS Rs.7,50,000/- Per Year Anticipated Annual Savings Rs.7,50,000/-

228
Kaizen

229
 Kaizen thinking
• Physical Phenomena of Breakdown / Quality defect
- Describe the problem exactly – worn out, crack and not use
abstract words like damage.
- As a gap between desired and actual status
- Is factual and data based
- Existence can be verified
• Action taken
 Describe the action taken for this phenomena that led to
problem removal on the day or at the earliest occasion.
 Problem and action are at the gemba.
 This action is adequate for the problem. Remember a problem
can happen because of more than one causes, different from
the current one.
 Action is to be verified. Data should be available. 230
 Kaizen thinking
• Why – Why RCA
 Why was the action required is the first question
 Try 5 Why. Action on the last Why.
 Kaizen is for future, different from Countermeasure
• Kaizen Idea :
 Exact opposite to root cause.
 What was it that I didn’t do which led to this problem.
• Kaizen and Action Plan
 Review the countermeasure : If it is poka-yoke then integrate
into a system for regular checks and training.
 Kaizen should be robust when machine, tool, equipment is
used for many more products, applications.
 Sustain the implemented Kaizen
231
 Kaizen event
• A Kaizen event is a team activity aimed at rapid use of WCM
methods to eliminate Operation waste and losses in a
particular area.
• It is well planned and structured to enable quick, focused
discovery of root causes and implementation of solutions.
• Events typically last 5 days. Though successful events are
planned for 1 to 3 days. These shorter period events are
narrowed down to smaller area, scope, problem. They usually
work well after longer kaizen events have achieved major
breakthroughs in the selected areas.
• Kaizen events or blitzes can be held periodically to make
focused changes in the workplace and for that a line or cell or
a segment of production, function may have to be shut down
while the change is made.
232
 Kaizen event
• To plan a kaizen event, an area is selected, a problem is chosen, a
baseline is determined & an improvement target and measurements are
established. Leader, coordinator and team are selected, trained and
timeframe for the event is set.
• Plan advance production to cover the reduction during event.
• Don’t impose ideas on workers but involve them to create solutions.
Employee training is must.
• Kaizen event is scheduled for many improvements –
5S ( 3S and 3D ) Visual Management, AndOn
Defect reduction QFD - House of Quality
Value Stream mapping Kanban implementation
Layout plan and change Standard work, Line balancing
Set up reduction Any problem solving, transformation
FMEA Any loss reduction
233
 Kaizen event Area Selection Matrix
Area / Area / Area / Area /
Criteria
Line A Line B Line C Line D
Deluged with WIP
Activities occur all over the plant
Significant Bottleneck
Frequent, Major Product stoppages
Everything is a mess
Product is medium to high volume
Cell / Line of no more than 12 operators
Complete, not a partial process
4-6 processes to complete the part
Visible, defined process
Process can be copied in other araes
Significant Market or Financial impact
Operational problems ( not management
issue ) to resolve
Operators are willing to make change and
want to do a kaizen event
Operators have already been cross trained
Operators have been exposed to kaizen
events
Most employees are familiar with the area
234
Elimination of Wastes is the Overall focus
 Example – a 5 day Kaizen event schedule
• A rigorous 5 day Kaizen event needs to be planned for quick
actions and results. Following are the 5 steps to be followed for
a 5 day kaizen event. Example here :VSM > Layout change
Kaizen Event – Day 1 - Current State Documentation
• Agree project scope
• Produce current state Value stream map
• Calculate takt time
• Measure cycle time
• Measure and determine optimum staff requirements
• Capture work sequence
Kaizen Event – Day 2 - Current State Evaluation
• Design an optimum flow/process
• Optimize organization layout
• Establish effective operator sequences
• Agree and define measures and metrics
• Implement layout
235
 Example – a 5 day Kaizen event schedule
• Kaizen Event – Day 3 - Characterize Future State Plan
Implementation
• Complete the layout implementation
• Test new area with existing workforce – amend as required
• Implement new layout
• Kaizen Event – Day 4 - Implement Future State
• Run Full production against layout
• Implement measures and metrics
• Document new process and standard work
• Kaizen Event – Day 5 - Operationalize Future State and
Debrief
• Align workforce and objectives
• Assess benefits
• New vs Old Cycle time and takt time
• Other measures as appropriate
• Conduct lessons learnt review with stakeholders
• 30 days Plan (balance actions, training etc) follow up review in 30 days

236
Traditional Method vs Kaizen Event

DO IT NOW 237
 Single Page Kaizen event format
Project Title: Ideal State ( Long Term): Key
Project
Champion: Leader: Text

Facilitator: Co-Facilitator: Future State ( 3-6 months) ( Improve ): Picture

Team:
Start Date:
End Date:
Depatment /
Location:
Key Tracker #
Process
Project Charter - Problem Statement ( Define ):
What is the problem? When & where does the problem occur? What is the extent
& impact of the problem? How do you know?
SMART Goals/Objectives
(1)What should be achieved with the Project? What level of performance is
expected? (2) What is the timing required to achieve the goal? (3) What key
milestones and target dates are required? (4) What is the estimated financial
benefit? Opportunities:
Scope: ( Begin and end points, area of focus) Implementation Plan ( Control ):

What is the focus of the Project? Identify the starting and ending points of the No. Action Owner Start End Comments Status
process. What is outside the Project scope?
Secondary Goals/Metrics:
(1) What secondary Metrics needs to be maintained or improved
Benchmark/Better Practice/Lessons Learnt
(1) Has a benchmark been done, how do you know (Tracker No.)?
(Internal/External) (2) Are there any Lessons Learnt?
Customers
(1) Who are the Customers?
Current State ( Measure & Analyze ):

Metrics:
Issues Identified: (Kaizen Bursts)
Operational :
Financial : 238
Example - Kaizen event format

239
Preparation before launch of Kaizen initiative
• Form a Kaizen committee - VP, GM, Plant head, HODs.
• Decide and prepare a list - what will be considered as ‘Kaizen’.
• Decide sources, ideas of Kaizen opportunities - both point and
process / system kaizens.
• Decide and prepare a list - what will not be considered as
‘kaizen’.
• Decide ‘Kaizen’ submission format. Ensure traceability.
• Decide idea / suggestion submission format - that a person can’t
implement but suggesting for consideration as he / she thinks it
will be useful. Committee to take the final decision.
• Prepare Kaizen rule - 1 or 2 persons max for 1 point kaizen, 3-5
persons for improvement project ( process or system kaizen or
quality circle / LCL team ), New ideas only, Horizontal
deployment acceptance, Approval requirement before
implementation, committee’s acceptance / evaluation, post
implementation sustenance requirement, Quarterly audit, Non-
compliance rule, how to submit etc. 240
 Preparation before launch
• Decide Recognition, Reward model.
• Print if possible and distribute Kaizen booklet.
• Form LCL team, Quality Circles. Train teams with Basic QC Tools,
Kaizen event.
• Explain the model to all. Any suggestion, discuss and consider.
• Decide support system - Verbal, Technical, Implementation,
Documentation, Financial.
• Display some good posters.
• Decide Kaizen promotion activities - Kaizen monthly walk by CEO,
COO, Plant head, OE head, Quarterly and yearly best and highest
point Kaizen awards, Quarterly and yearly team / quality circle / LCL
team competition, awards. External competition for best teams.
• Decide Kaizen records preservation process.
• Decide right KPIs to Track like : Point Kaizen per person per month,
Point Kaizen per department per month, Number of LCL / QC Circle
projects per year, No. of Kaizen events per year, Total Kaizens ( all )
per month, Improvements / benefits in PQCDS due to Kaizens etc. 241
Kaizen booklet – circulate to all employees

242
 Opportunities - Operations
• Actions, Improvements that
 will increase output per person within Cycle time.
 will reduce Cycle time in any operation, activity.
 will reduce set up / change over time.
 will reduce, eliminate a Quality defect.
 will reduce, eliminate error ( Process error, Human error, Machine
error ) in any process, document.
 will reduce lead time ( become faster ) of any process, activity in any
department.
 will reduce, eliminate risk of accident.
 will make a complex operation simpler.
 will reduce a waste – motion, transportation, waiting, scrap / rework,
extra processing.
 will reduce, eliminate spillage, leakage, wastage of chemicals, oils,
air, consumables, tools.
 will reduce machine breakdown.
 will reduce consumption of fuel, power.
 will reduce strain on man, machine.
243
 Opportunities - Purchase
• Reduction of Supplier Lead time, Replenishment time
• Implementation of 2 BIN Kanban for fast moving, regular items,
C class items.
• Implementation of Milk Van run
• Time reduction from Requisition to PO.
• Cost reduction through Long term contract
• Cycle time reduction of PO preparation
• On time receipt – not early, not later.
• Reduce number of documents, paper consumption, paperless
transactions.
• Lead time reduction of ‘Supplier Payable process’.
• Time reduction of any specific activity.
• Reduce MOQ, Batch size.
• Reduction of waiting time : Information, Document, Decision etc.
• Simplification of any process, format.
• Opportunity of 5R : Reduce, Reduce, Reuse, Repurpose, Recycle
244
 Opportunities - Purchase
• Alternate supplier development for poor quality, delivery, import
substitution, localisation.
• Eliminate unnecessary steps, activities.
• Reducing number of steps of a process.
• Satisfy Internal customers’ requirements better.
• Any cost reduction ( not by negotiation ) opportunity
• Alternate items with higher life
• Alternate item with less cost
• Improved packing to reduce transit damage.
• Packing, Logistics cost reduction
• Opportunity for energy cost reduction – fuel, electricity, gas etc.
• IT system, Online : Stock at key suppliers, PO, Bill clearance, Bill
payment, Forecasting etc.
• Any improvement to reduce lead time, cycle time, defects, inventory,
cost ( Materials, consumables, capital ), increase cash flow.

245
 Opportunities - HR, Admin.
• Reduction of Supplier Lead time, Replenishment time
• Implementation of Milk Van run
• Time reduction from Requisition to PO.
• Cycle time reduction of PO preparation, Any activity / process.
• Reduce number of documents, paper consumption, paperless
transactions.
• Time reduction of any specific activity.
• Reduce MOQ, Batch size.
• Reduction of waiting time : Information, Document, Decision etc.
• Simplification of any process, format.
• Hiring cost reduction
• Any cost reduction ( not by negotiation ) opportunity
• Requisition to Onboarding - lead time reduction.
• Multi-skill% increase.
• Opportunity of 5R : Reduce, Reduce, Reuse, Repurpose, Recycle

246
 Opportunities - HR, Admin.
• Increase Employee engagement
• Implement better system : Onboarding, PMS, Competency mapping,
Operator Qualification and Certification, YMDP, Succession
planning, Exit Interviews, VOE survey, Coaching and mentoring etc.
• Eliminate unnecessary steps, activities.
• Reducing number of steps of a process.
• Opportunity for energy cost reduction – fuel, electricity, gas etc.
• Admin cost reduction.
• Satisfy Internal customers’ requirements better.
• Reduce Food waste, Water consumption.
• IT System, Online : Leave application & approval, Leave balance,
Form 16, PF, Insurance etc.

247
 Opportunities - Finance
• Opportunities, ideas to Reduce Tax
• Opportunities, ideas to Reduce Interest
• Opportunities, ideas to Reduce Custom clearance charges, Bank
charges
• Any cost reduction opportunity
• Any Bank guarantee scheme
• Analytical report of hidden cost – additional material cost, labour
cost due to rejection, rework, customer returns etc.
• Variance analysis reporting – Materials, Purchase, Budget-actual,
DSO, Inventory, Standard cost, Sales etc.
• Order-wise, Customer-wise, Product-wise profitability reporting
• Trend analysis – Fixed Cost, Variable cost elements
• Cycle time reduction any activity / process like Invoicing, Report
generation, MIS, Bill processing, Application, Financial closure etc.
• Eliminate unnecessary steps, activities.
• Reduction / elimination of Non-compliance during Internal, External
Audits.
248
 Opportunities - Finance

• Simplification of any process, format.

• Reduction of waiting time : Information, Document, Decision etc.
• Reduce number of documents, paper consumption, paperless
transactions.
• Lead time reduction of ‘Supplier Payable process’.
• Reduce data entry errors, time.
• Develop cost reduction calculation templates.
• IT system - On line report availability

249
 Employee Engagement Metrics
• Suggestions / Kaizens per person per month.
• % of people contributing Kaizens per month.
• No of Quality Circles trend.
• % of officers, managers engaged in cross-functional CI
projects.
• % of CI projects completed on time.
• Audit Compliance by all audits.
• % of identified NCs, Abnormalities closed per month.
• Financial Benefits trends from Kaizens, CI Projects.
• No of External Awards trend.
• Number / % of Green Belts, Black Belts trends.
• Customer Satisfaction survey and Employee Satisfaction
survey scores trend.
250
Reward and Recognition
For Kaizen

Some Ideas, Options

251
 Why Reward and Recognition
• Promote both Individual and Team performance.
• Understanding on ‘what is in it for me’ ?
• Self Motivation to achieve stretched goals.
• Self Motivation to invest on learning and development to
perform better and grow.
• Much higher level of ownership, engagement and sense
of urgency.
• Smoot integration of all current and future planned best
practices for organizational excellence.
• Ensure Total Employee Involvement ( TEI ).
• From PUSH to PULL culture.
• Make organization an employer of choice.

252
 Few ideas – Individual, team wards
• Recognition of work in public – spot, function, event.
• Individual / Team Kaizen award : Token Monetary or gift.
• Improvement project teams : Gifts or other means.
• Internal kaizen competition and awards. Send best teams for
national, international competitions.
• Sponsor : Education, Books, School / College fees, of
employees, their children.
• Sponsor Family sightseeing trip.
• Awarding good performance of employees children, yearly –
Education, Sports, any other field.
• Loan facility : Housing, Education ( Self, Children ).
• Skill building for employees wives.
• Medical support beyond insurance amount.
• Some National Event Tickets

253
 Few ideas – Individual, team wards
• Sponsor Kid’s birthday Party.
• Sponsor Marriage anniversary of employees.
• Display achievements in company notice boards, newsletters,
newspaper.
• Company T Shirt, Jacket, Cap, Gift items with company logo.
• Promotion, incentives linked to Learning and Performance,
contribution on Kaizens. - Review records for the year.
• Invite family members of good performing employees to visit
factory, office.
• Sponsor family dinner.
• Celebrate success – birthdays, external awards, customer
awards, highest production , sales etc.

254
 Reward System – discriminate

• Organizational reward system should effectively

discriminates between good and poor or above average
and above average performance, ties reward to
performance and gives the best people the opportunities
for advancement.
• It should PULL instead of PUSH, majority ( 50% in 1
year, 70% in 2 years ) of the employees towards
committing, participating in embracing change and
contributing in various improvements.

255
 Criteria of Kaizen evaluation
1. Originality of idea
2. Multiple Aspects of ideas
3. Operational, Business, Customer Impact of the idea
4. Innovation included
5. Implemented
6. Benefits realised
7. Low investment ( Zero Cost Improvement)
8. No consequential risk, negative impact

256
Total Employee Engagement – LCL
model

257
Drivers of Change – Relentless Execution is the key

Frequency of reporting Method of reporting

Sponsor
Quarterly OE Lead Board

Champion
OE Lead Board
Monthly

Plant Champion
Area Dashboard
Bi-Weekly

Local Change Leaders

Daily & during Pr
Workplace meeting, oject reviews
Scheduled reviews

Team members

258
 Roles
• Organization Sponsor – CEO, COO
• OE Champion and coach – OE head or VP Operations
• Plant level champions – Plant heads
• Process Owners – Function HODs
• Plant OE co-ordinator
• LCL teams – Leader, Members, Facilitator
• OE Steering council – Senior leadership team

259
 Proposed Roles, Responsibilities, Accountabilities

Decides and articulates Organization's vision and strong believer of OE as

enabler of realizing that vision.
Has the overall knowledge of world class methodologies and their
deliverables for achieving business goals
Sponsor
Removes all hurdles that may come in the way of achieving the Vision and
Operational excellence
Guides OE Steering committee on strategies
Asks progress report from OE Champion
Develops Strategies and Roadmap
Develops Guidelines and PDCA process
Knowledge and experience in World class methodologies - Lean, Six sigma,
TQM, TPM, Business excellence
Clarity and understanding of the big picture of what OE can deliver in
realizing company vision and goals
Prepares competency development roadmap and guides plant heads for
Champion and Coach execution
Work for competency development as per plan - Develop, Coach, Mentor
Communicates and seeks strategic direction, support from Sponsor
Reviews execution, provides feedback, ensures course correction when
required.
Overall ownership for success
260
 Proposed Roles, Responsibilities, Accountabilities
Work with OE Champion for deployment and successful execution
Learn OE tools and methodlogies
Select right Coordinator, people for development and engagement
Ownership of initiatives deployment in his / her plant
Plant Champion Select right projects and initiatives in line with Operational
excellence goals
Approves Project charters
Reviews progress
Removes plant level hurdles, if any
Takes ownership for OE success in the plant

Willingness to learn and stretch beyond routines

Attends all OE training
Understands Deployment roadmap from OE / Plant champion and
align his/ her daily work in line with that.
Arrange training in coordination with Plant champion
Arrange facilities for OE / Kaizen events
OE Coordinator Coordinates with owners, leaders to ensure updated Lead board
Arrange reviews, prepares feedback notes, MOMs and shares
Interacts with Process owners, Plant champion in case of hurdles,
delays in execution.
Prepare OE MIS ( performance, progress, status ) and share
Develops himself / herself as future trainer
261
 Proposed Roles, Responsibilities, Accountabilities
Functional ( Deptt head / Value stream manager ) experts.
Learn OE tools and methodologies
Ownership of initiatives deployment in his / her function
Select right projects, teams in line with functional and company goals
Leads at least 1 project every year
Facilitates other projects in his / her function
Process Owners
Participate in review process
Ensures competency development and successful initiative and
projects execution in his / her function
Sustain improved processes, practices, results in his / her functions
Plays 3 roles - Supplier, Customer, Producer for cross functional
collaboration

Takes ownership for improvements of an area, line or Project

Complete project pre-work activities, Prepares Project charter
Work with process owner and champion to understand project goal
Selects team members for project or kaizen event, workshop
Prepares RACI
Local Change leader / Engages people with specific project activities
Project leader Prepares SPP
Reviews progress frequently to complete as per plan
Interacts with process owners and champion for any support
Ensures project success and 6 months sustenance after project closure
124 262
Proposed Roles, Responsibilities, Accountabilities
Complete assigned project pre-work activities
Attends training, learn required tools
Provides inputs / process expertise for root cause analysis
and improvement actions
Validate the causes and improvements
Project members Interacts and engages workmen, shop floor / process
leaders for data collection, brainstorming, action
implementation.
Complete all assigned project work activities as per plan
Attend all project reviews and updates status

We have to develop Lean and Six sigma Green& Black belts

Lean, Six sigma Green, Black in next 1 to 3 years - few in in every function. They will be
belts given responsibilities of guiding, handholding 2-3 project
teams during execution

Ownership of Competency mapping and development

HR through Plant heads and OE Champion

Financial benefits calculation support and verification for

Project benefits
Finance Provides inputs, shares data on areas, products where
opportunity exist for higher contribution. Helps OE / Plant
OE to prioritize projects, actions.
125 263
 LCL Structure - Example

Team size
Officers – 27
Workmen - 187

264
 LCL Structure - Example
Members
Name of The Name of The
Zone Zone Designation Zone LCL Staff Workers
Team LCL
Inward & Raw Material Inward & Raw Material
1 RAIGARGH Mr. R.S.Shinde Jr.Executive- Stores 1 1 4
Stores, Scrap Yard Stores, Scrap Yard
Mr. Sr.Supervisor-
2 Soft Stage PRATAPGARH Soft Stage 1 2 8
S.R.Ahirwar Production
Mr.
3 Heat Treatment VIJAY DURG Sr.Supervisor-Planning Heat Treatment 1 1 3
S.N.Bhombe
4 Grinding SHIVNERI Mr. D.B.Rawle Engineer-Prodution Grinding 1 2 8
SINDHU Asst.Manager-
5 Collet & Assembly Mr. T.H.Sayed Collet & Assembly 1 2 8
DURGH Production
Maintainance Store, Maintainance Store,
Sr.Engineering-
6 Utility Area & PANHALA Mr. S.N.Patil Utility Area & 1 2 3
Maintainance
Operations Cabin Operations Cabin
Final Inspection & Mr. Jr.Engineer-Quality Final Inspection &
7 DEOGIRI 1 1 3
Standard Room S.M.Kulkarni Assurance Standard Room
Finish Goods Store & Finish Goods Store &
AJINKYA Mr. Asst.Manager-FGS &
8 Packing Area, Packing Packing Area, Packing 1 2 4
TARA V.P.Somvanshi Dispatch
Material Storage Area Material Storage Area
Office Area (IT, A/c,
Mr. Office Area (IT, A/c,
9 Reception & Front PURANDAR Manager- IT 1 1 3
A.R.Bhamere Reception & Front Office
Office
10 Garden & Open Space TORNA GARH Mr. S.D.Wagh Sr.Asst.- HR & Admin Garden & Open Space 1 1 4
Main Gate, Material Main Gate, Material
Gate Security Office, Gate Security Office,
11 Water Tank, Water SINGH GARH Mr. D.J.Hiwale Jr.Officer-Security Water Tank, Water 1 2 4
Coolars & Toilets Coolars & Toilets
Total Participant 80
11 17 52
Peoples
265
Basic requirements for a kaizen to be successful
 Keep the scope small; it should never be large.
• If the scope is small, implementing will be practical.
• Larger scope will delay implementation.
 Do not strive for perfection.
• Initially try for solution/improvement to a part of a situation/problem.
• You can always go for another kaizen from this new state.
 Results to be presented/published at the completion of kaizen.
• This will motivate members of the team, as well as, another
department having a similar situation can benefit from the
publication.
 A charter is a must at the beginning itself; the charter should
have the problem statement, background information, time
frame, etc. besides, measurement of the improvement.
 Picking the right team in the planning stage of the kaizen
266
considering the skill sets, knowledge and expertise.
Basic requirements for a kaizen to be successful
 Kaizen to be linked with business plan, meeting your
organization’s goals, remember/remind often resources to
perform kaizens are limited.
 Do not hesitate to get ideas, from outside the team whose
knowledge and expertise will help in the speed of arriving at
the solution.
 Last but most important - Management commitment must for
all kaizens to succeed in implementation.

267
 The Kaizen Environment
•Success create success – Create small islands of success
•Promote team work & collective wisdom
•Don’t ridicule or criticise
•Be patient
•Don’t be complacent with the present status
•Don’t hide problems
•Be honest with your mistakes
•Have respect for individuals

268
The Kaizen Environment ( contd.,)
•Appreciate openly where deserved
•Group consensus before implementing
•Focus on what is wrong rather than who is wrong
•Seek help ( External & Internal)
•Always standardise
•Emphasise on systems rather than results
•Be proactive
•Do it now & don’t give up
•Training

269
Leadership Gemba Walk – Some Leading
Questions
1. What are you doing now ?
2. Is there a standardized process for execution ?
3. What challenges do you face ?
4. How do you identify a challenge ?
5. What do you fix ?
6. What you can’t fix ?
7. Who do you speak to when something goes wrong ?
8. Are you aware of current customer concerns, if any ?
9. How many kaizens submitted in recent times ? Can you
share one ? – Great job, keep it up.
10.What more support do you need ?
11.How can I help ?
12.Any suggestion for improvement ?
270
FROM - TO

TO
MEANS
Knowledge

• Leadership
FROM • Best Practices
• Total Employee Engagement Good Decisions
Chaos

Fire Fighting

Waste

271
Let us remember this power thought

" In any moment of decision

the best thing you can do is
the right thing,
The next best thing is
the wrong thing,
AND
The worst thing you can do is
nothing."

272
Institutionalize Kaizen

273
 IT’S CALLED MINDSET
As my friend was passing the elephants, he suddenly stopped,
confused by the fact that these huge creatures were being held by
only a rope tied to their legs. It was obvious that the elephants
could, at any time, break away from the ropes they were tied to
but for some reason, they did not. My friend saw a trainer nearby
and asked why these beautiful, magnificent animals just stood
there and made no attempt to get away.

“Well”, he said, “when they were very young and much smaller,
we used the same size rope to tie them and at that age, it’s
enough to hold them. As they grow up, they are conditioned to
believe they cannot break away. They believe the rope can still
hold them, so they never try to break free.” These animals could
at any time break free from their bonds, but because they believed
they couldn’t, they were stuck right where they were. The
powerful and gigantic creature has limited its present abilities by
the limitations of its past.

Like the elephants, how many of us go through life holding onto a

belief that we cannot do something, simply because we failed at it
once before? How many of us refuse to attempt something new
and challenging because of our so-called MINDSET?

Your attempt may fail, but never fail to make an attempt….

&
CHOOSE not to accept the false boundaries and limitations created by the past… 274
 River Nile

For any further clarification, question, reach out to me