A 2-days course

on

KAIZEN
Never Ending Efforts for Improvement
– Manager & Workers Alike
 Quote

“If there is no action, there can

be no success”
 Some Path to Improvement
• Individual efforts

• Part-time groups or
teams

• Kaizen teams
 What is KAIZEN?

KAI + ZEN
To modify, to change Think, make good, make
better

= KAIZEN
Make it easier by studying it, and making the
improvement through elimination of waste.
 Kaizen
• Applicable to both
– Direct labor (production), and
– Indirect labor operations
 Kaizen Focus
• Focus on teams

• Involves all parts of the company

• Involves everyone (from CEO to line

operators)
 Kaizen Team
• Members of the operations being
studied
• Members of the previous operations
• Members of the subsequent operation
• Support members (from other
departments)
 Kaizen Implementation
• Duration:
– Often a week-long event, not months

• Idea that “doesn’t work out” is not a

negative
 Why Kaizen CPI (Continual Performance Improvement)
• Data Driven Methodology to Magnify Impact of
Process
Improvement Process Improvement
•
Project
Implemented Apply Control Techniques to Eliminate Erosion of
Savings

Improvements
Maintenance of
• Proceduralize/Standardize Improvements for
Process
Performance Improved Maintenance of Critical Process
Parameters
Time
CPI
Savings Project CPI Projects Emphasize
Control and Long Term
Maintenance

Kaizen Time Kaizen

Savings
• Use Small Teams to Optimize Process
CPI
Performance by Implementing Incremental
Change
• Apply Intellectual Capital of Team Members
Intimate with Process
Kaizen Projects Emphasize
Incremental Improvements Time
 Kaizen Benefits

• It is a team based approach

– Involves all levels, thus, improves participations
• Since changes are in small scope, individual
mistake can be easily corrected
• Quick solution (~1 week) & simple
• Immediate results (new process in place by
the end of week)
 Why Kaizen?
• Reduction in waste:
– Inventory
– Time
– Transportation
– Worker motion
– Employee skills
– Quality
– Process
 Why Kaizen?
• Improvement in:
– Space utilization
– Product quality
– Communications
– Production capacity
– Employee retention

• Provides immediate results

KAIZEN – Low Cost Implementation
 Kaizen vs. Innovation
“Western” Approach

Innovation & results-oriented thinking

▪ Reliance on technology
▪ Often higher costs
 Kaizen vs. Innovation
“Japanese” Approach

Kaizen “process” oriented way of

thinking
▪ If the process is well designed and run,
the “results will come” gradual,
orderly and continuously
▪ Often lower cost approach
 Kaizen vs. Innovation
- Summary
FACTOR KAIZEN INNOVATION
Size of improvement Small improvements Major improvements

Basis of Conventional Technology or

improvement knowledge equipment
Main resource Personal Money investment
involvement
People involved Many people A few champions

Orientation Improve the process Improve results

 Kaizen vs. Innovation
- Summary
FACTOR KAIZEN INNOVATION
Results Continuous Spontaneous

Progress Small steps Big jumps

Visibility Not dramatic Very dramatic

Economy Continue even Mainly during good

during slow economy economy
 KAIZEN EVOLUTION

vs vs

INNOVATION REVOLUTION
 Kaizen Principles
Process creates results

• Process components:
– People
– Machine
– Methods
– Material
– Environment
 Kaizen Principles
- cont’d
Focus on the total system rather than a
departmental focus

• A departmental optimum may not be a

system optimum.

• Problem solution at one location causes a

problem somewhere else.
 Kaizen Principles
- cont’d
Non-blaming and non-judgmental

• Determine “what is wrong”, not “who

is wrong”.

• Don’t kill the messenger.

KAIZEN – 7 Key Concepts
KAIZEN – 7 Key Concepts
 KAIZEN – 7 Key Concepts
1. SDCA vs. PDCA
• SDCA – Standardize, Do, Check, Action
✓ A refinement of PDCA
✓ Management decides first to establish the
standard before performing the regular PDCA
functions
• PDCA – Plan, Do, Check, Action
 KAIZEN – 7 Key Concepts
1. Shewhart cycle, PDCA
• P-Plan
✓ Pick a project (pareto principle)
✓ Gather data (histogram & control chart)
✓ Find cause
✓ Pick likely causes (pareto principle and scatter diagram)
✓ Try solution
• Do
✓ Implement solution
• Check
✓ Monitor results (pareto, histogram, control charts)
• Action
✓ Standardize on new process (write standards, train)
 KAIZEN – 7 Key Concepts
- Cont’d
2. Next process is customer
• Satisfying internal customer (the next
process) in order to achieve final
customer satisfaction
 KAIZEN – 7 Key Concepts
- Cont’d
3. Quality first
• Improving quality automatically
improves cost and delivery
• Focus on cost usually leads to
deterioration in quality and delivery
 KAIZEN – 7 Key Concepts
4. Market in vs. Product out
• Pull vs. push
• Produce only what the customer demand
• Driven by the customer
 KAIZEN – 7 Key Concepts
5. Upstream management
• Focus on the upstream processes rather
than gating at the back end
• The sooner in the design/pilot
test/production/market cycle a problem
can be found and corrected, the less
time and money are wasted.
 KAIZEN – 7 Key Concepts
6. Data collection
• The use of statistical tools – as discussed
under PDCA
• Use of facts rather than “gut” feeling
 KAIZEN – 7 Key Concepts
7. Variability control & recurrence
prevention
• Ask “Why” 5 times to get to the real
cause of a problem.
• Avoid just treating the effect of the
problem (ie treating only the symptom)
KAIZEN – 5S Process
Seen this before?
How about this?
 Consequences of Bad
Housekeeping
Unsafe Working Condition

• Accident due to poorly arranged

materials

• Trips due to oil spills

38
 Consequences of Bad
Housekeeping
Poor Work Efficiency

• When materials/tools not properly kept:

– Time wasted looking for the
materials/tools
– Cannot find the right materials/tools
to use

• Dirty and untidy surroundings may

damage the products
39
 Consequences of Bad
Housekeeping
Poor Working Environment

• Poor housekeeping leads to dirty and unpleasant working

environment

40
 Consequences of Bad
Housekeeping
Poor Work Discipline

• When the environment is messy, the job becomes

unpleasant, morale of employee will be affected

41
 What is 5 “S”?
• SEIRI
• SEITON
• SEISO
• SEIKETSU
• SHITSUKE

42
 Seiri
Sort Through & Sort Out

• Free up valuable floor space

• Eliminate unwanted things

➢ Throw away things that are no longer in used.

➢ Things used very often should be placed
closer.
➢ Things seldom used can be stored farther.
 Seiton
Store In Order

• Store necessary items in proper order so that

they can be easily picked up for use
 Seiso
Clean

Not just to clean, but to inspect for any

deterioration:

– Oil leaks
– Worn bearings
– Loose fasteners
 Seiketsu
Standardize Best Practices

• Things are labelled.

• Work instructions posted.

• Work methods standardized.

 Seiri Seiton
Eliminate Ensure space for
what’s not each thing, and
a thing for each
absolutely space. No more
necessary searching.
Shitsuke
Maintain
continuous effort.
Seiketsu This is a way of
life.
Seiso
Improvement
of the Maintain a clean
and orderly space
workstation. to make problems
Be organized easily
to reduce identifiable.
clutter. Eliminate rejects
and scrap..
KAIZEN – 7 Deadly Wastes
 Only 5% of the total time a material sits in a
factory is value added

The balanced 95% of the time is spent adding costs:

➢ Storage
➢ Delay at queue
➢ Transportation between processes, etc.

A lot of ‘muda’ (wastes) are ‘designed into’ the internal and

external flow!
 Definition of Waste

“Anything other than the minimum

amount of equipment, space and
worker’s time, which are absolutely
essential to add value to the product”

Fujio Cho
 What are the 7 “deadly waste”?

❖ Overproduction
❖ Waiting
❖ Transportation
❖ Processing
❖ Inventory
❖ Motion
❖ Defects
 Waste : Over-production
• Producing more than demand or produce before it
is needed.

• Causes:
➢ Just-in-case logic
➢ Misuse of automation
➢ Long process set-up
➢ Unleveled scheduling
➢ Unbalanced work load
➢ Over engineered
➢ Redundant inspection
 Waste : Overproduction
Extra inventory Extra handling

Extra space

Waste of Overproduction Extra interest charges

Extra machinery
Extra paperwork
Extra defects

Extra people Extra overhead

 Waste : Waiting
• Causes:
➢ Unbalanced work load
➢ Unplanned maintenance
➢ Long process set-up time
➢ Misuse of automation
➢ Upstream quality problems
➢ Unleveled scheduling
 Waste : Transportation
• Causes:
➢ Poor plant layout
➢ Poor understanding of the process flow for
production
➢ Large batch sizes
➢ Long lead times
➢ Large storage areas
 Waste : Processing
• Causes:
➢ Product changes without process changes
➢ Just-in-case logic
➢ True customer requirements not defined
➢ Over processing to accommodate downtime
➢ Lack of communication
➢ Redundant approval
➢ Extra copies/excess information
 Waste : Inventory

“The more inventory a company has…

… the less likely they will have what they

need.”

Taiichi Ohno
 Inventory
• Definition:
A physical resource that a firm holds in stock
with the intent of selling it or transforming it
into a more valuable state.

• Inventory positions:

Raw Work in Finished

materials Progress Goods
 Waste : Motion
• Motion of workers, machines, transport

• Causes:
➢ Poor people/machine effectiveness
➢ Inconsistent work methods
➢ Unfavorable facility or cell layout
➢ Poor workplace organization and
housekeeping
➢ Extra “busy” movements while waiting
 Waste : Defects
• Causes:
➢ Weak process control
➢ Poor input product quality
➢ Unbalanced inventory level
➢ Poor maintenance of machinery
➢ Inadequate education/training/work
instructions
➢ Product design
➢ Customer needs not fully understood
 Exercise #1
1. List down at least 3 examples of wastes that you
see at your work area.

2. Name at least one of the possible causes leading

to each of the wastes you have identified above.

3. Propose one or more actions to reduce each of the

above wastes.

4. Identify methods to measure the results of your

waste reduction effort.
KAIZEN – Standardization Work
 Definition of Standardized Work

• It is a tool for maintaining productivity, quality and

safety, at high level

• Is defined as work in which the sequence of job

elements has been efficiently organized, and is
repeatedly followed by a team member.

• A process whole goal is Kaizen. If standardized

work doesn’t change, we are regressing.
 Benefits of Standardization

• Eliminate inherent sources of variance,

thus, establishes process stability
• Eliminate opportunity for human discretion
error
• Provides a basis for employee training
• Reveals clear stop and start point for each
process
• Assists audit and problem solving
 Benefits of Standardization
- Cont’d
• Creates baseline for Kaizen
• Enables effective employee involvement
and poka-yoke
• Maintains organizational knowledge
 Components of Standardize Work

• Takt time and cycle time

– Takt time = daily operating time/required
quantity per day
– Cycle time = Actual time for process
– Goal is to synchronize takt time and cycle time
– Eliminate waste, then balance work to takt time.
 Components of Standardize Work
- Cont’d
• Work sequence
– The order in which the work is done in a
given process
– Can be a powerful tool to define safety
and ergonomic issues
 Components of Standardize Work
- Cont’d
• In-process stock (WIP)
– Minimum number of unfinished work
pieces required for the operator to
complete the process
 Misconception of
Standardized Work
• Standardized work is mistaken as a static work
process

• Workers feel that their jobs are at risk and,

therefore, may not participate fully in optimizing
the process

• Results of standardized work is not immediately

apparent.
– Contributing factors could be due to, among others,
learning curve, additional training required.
 Do It
Document Again Celebrate
Reality
Make this
the Standard

Identify

Kaizen
Waste

Measure
Results

Plan
Countermeasures
Reality Make Changes
Check
Verify Change
 Food For Thought

Improvement is endless and eternal

Toyota Proverb
 Case study
Assuming that you
are faced with the
following conditions
in your work area.
Apply PDCA to
improve the quality,
delivery and cost of
your products.