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MEM

Process Engineering and

Continuous Improvement

FUNDAMENTALS OF CONTINUOUS
IMPROVEMENT

”5 S’s” , PARETO ANALYSIS and

KAIZEN EVENTS
José António de Sousa Barros Basto

Professor Auxiliar F.E.U.P. - DEGI

10 November 2020

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CONTINUOUS IMPROVEMENT

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CONTINUOUS IMPROVEMENT
“Characterizing kaizen as simply "continuous
improvement" trivializes the concept and portrays it
as cautious and lacking in imagination...
More typically, the implementation of kaizen reflects
a radical commitment to an entire way of operating
that requires floor-to-ceiling change in
management, work, manager-worker relationships,
discipline, decision making, and the organization of
knowledge, that transforms an organization into a
federation of problem solvers.”
• Peter Keen, Chairman of Keen Innovations

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CONTINUOUS IMPROVEMENT
1. Keep on improving!
2. A cultural objective
3. Person based
4. Long term goal
5. Bottom-up initiative
6. Key for success
7. Need involvement of everyone, from CEO to janitor!
8. Affects all areas of a company (not only the QC
department)
9. Front line workers must take the initiative to change , solve
problems and improve the company.

A LIFETIME PATH OF SEARCHING, REFLECTING,

LEARNING AND IMPROVING!
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CONTINUOUS IMPROVEMENT
What it is NOT:
1. Troubleshooting
2. Kaizen events only
3. Tools application
4. Delegating to a special type of worker
5. No worker involvement
6. Short term goals
7. Firing people because they improve!
8. No clear objectives
9. Changing for the worse

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Why and how Kaizen Fails

1. “Absence of a real culture”

2. “Politics and blame games”
3. “General resistance to change”
4. “Lack of momentum”
5. “No sense of ownership/no empowerment”
6. “Short-term vision”
7. “Failure to identify problems”
8. “Failure to see root causes”
9. “Failure to plan and execute”
10.“Lack of resources”
Excerpt From: Ángel Medinilla. “Agile Kaizen” (2014)

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CONTINUOUS IMPROVEMENT
PLAN – DO – CHECK – ACT (PDCA)

By Christoph Roser at AllAboutLean.com under the free CC-BY-SA 4.0 license.

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HISTORY
– Training Within Industry program (TWI Job Methods)
during World War II in the USA
– Introduced in Japan after the War as part of the Marshall
Plan
– W. Edwards Deming did further training in statistical
methods for Japanese engineers.
– Toyota was an early adopter of Kaizen
– Masaaki Imai made the term famous in his book Kaizen:
The Key to Japan's Competitive Success (1986)

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Masaaki Imai Video

– https://www.kaizen.com/what-is-kaizen.html

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KAIZEN TOOLS
5S’s
• Seiri = Sort
• Seiton = Set in Order
• Seiso = Shine
• Seiketsu = Standardize
• Shitsuke = Sustain

• It is considered to be the basis of TPS – Toyota

Production System - because until the workplace is in
a clean, organized state, achieving consistently good
results is difficult

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KAIZEN TOOLS
5S’s
• Seiri = Sort
– The first step of 5S, Sort, involves going through all the
tools, furniture, materials, equipment in a work area to
determine what needs to be present and what can be
removed
• What is the purpose of this item?
• When was this item last used?
• How frequently is it used?
• Who uses it?
• Does it really need to be here?

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KAIZEN TOOLS
5S’s
• Seiri = Sort
– Go to Gemba: ask the workers!
– For cases when an item's value is uncertain—for example,
a tool hasn't been used recently, but someone thinks it
might be needed in the future—use the red tag method
– Simple sticker or cardboard tag
» Location
» Description
» Name of person applying the tag
» Date of application
– Then the item is placed in a “red tag area” with other
questionable items. If after a designated amount of time (a
month ?) the item hasn't been used, it's time to remove it
from the workspace
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KAIZEN TOOLS
5S’s
• Seiton = Set in Order
– Now with “house clearing” done, it is easier to put order in
the remaining items
– One place for each tool; each tool in its place!
– Who uses it?
– When?
– How frequently?
– Should tools be grouped by type or by product?
– Where should we put the tools?
» Choose the most ergonomic placement to avoid muda (waste)
of motion
– Do we need more boxes to keep items organized ?
– Is the layout adequate?
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KAIZEN TOOLS
5S’s
• Seiso = Shine
– Cleaning up is the job of everybody, not just the janitor!
– Make sure you reserve time for the job (usually at the end
of shift); it is not to be done after-hour…
– Easy to skip, mostly when busier…
– Clean environment means easier to spot mal-functions (oil
leakage, …)
– Should include basic maintenance of machine-tools
– Improves morale and induces ownership of the workspace
by the collaborators
– Make sure that each workstation has the necessary
cleaning tools and materials

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KAIZEN TOOLS
5S’s
• Seiketsu = Standardize
– Now the workplace should be a motive of pride!
– Need to avoid fall back to previous chaos… “entropy” is
alive in any plant
– Bet in “Visual Management” : signs; floor markings;
“shadow” tools organizers or foam with specific openings
for toolboxes
– Need to turn 5S’s into a habit: create schedules; post
visual instructions; with time, 5S will become routine!
– Daily , weekly, monthly checklist
– Supervisors and managers must give example

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KAIZEN TOOLS
5S’s
• Shitsuke = Sustain
– Everybody must be in the same boat: workers, supervisors,
managers
– 5S Management walks to communicate engagement from
the top (may use visual cards for “Achievement” and
“Improvement”)
– Extend to other areas (locker rooms; WC)
– The warehouse and the office must also be part of the
effort
– 5S’s are a long-term program, but the fruits of it are
invaluable!

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KAIZEN TOOLS
5S’s BENEFITS
• With the 5S working the company can improve
– Reduces set-ups
– Reduces the time to build a product
– Gains space

– Reduces the number of accidents

– Reduces time losses
– Uses better the equipment’s

– Transforms the workplace in a more suitable place to work

– Removes obstacles and frustrations from the work
– Facilitates communication
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KAIZEN TOOLS
TYPES OF RESISTANCE TO 5S
1. What is the great 7. I know my workplace is
importance of organizing confused, but I know where
and tidying up? things are
2. Do you want me, the 8. We have already
implemented the 5S 5 years
administrator, to lead the 5S ago
project?
9. The 5S and continuous
3. Why clean up if it's going to improvement are only for
get dirty again quickly? the factory
4. Implementing organizing 10. We don't have time, we are
and tidying won't increase too busy to implement or
production maintain the 5S
11. Why should someone come
5. Why worry about obvious to my workplace and tell me
things? that it's a mess?
6. The 5S are already 12. We don't need the 5S; as it
introduced is, it works
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KAIZEN TOOLS
FORD 5S

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KAIZEN TOOLS
EXAMPLE 5S
• Before • After

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KAIZEN TOOLS
VISION 6S – SAFETY INCLUDED

Sort (Get rid of it)

• Separate what is needed in the work area from what is
not; eliminate the latter
Set in order (Organize)
• Organize what remains

Shine (Clean and Solve)

• Clean and inspect

Safety (Respect workplace and employees)

• Create a safe place to work

Standardize (Make consistent)

• Standardize the cleaning, inspection, and safety
practices
Sustain (Keep it up)
• Make 6S a way of life

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KAIZEN TOOLS
PARETO ANALYSIS
• Pareto Principle: any population that contributes to a
common effect, a relative few of the contributors—the
vital few—account for the bulk of the effect.
• Sometimes stated as the 20 / 80 rule: original study
found that 20% of Italian population concentrated
80% of wealth.
• Example : paper mill’s goal of reducing its cost of
poor quality (from Quality Handbook by Juran)

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made easier when the tabular data are presented in graphic form. Figures 5.8, 5.9, and 5.10 present the
paper mill data graphically. Like their tabular counterparts, each of these graphs contains three
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elements:
1. The contributors to the total effect, ranked by the magnitude of their contribution
2. The magnitude of the contribution of each expressed numerically and as a percentage of total
KAIZEN TOOLS
3. The cumulative percentage of total contribution of the ranked contributors
PARETO ANALYSIS
TABLE 5.3 Pareto Analysis by Accounts

Percent of total quality loss

Accounting category Annual quality loss,* This category Cumulative
$thousands
Broke 5560 61 61
Customer claim 1220 14 75
Odd lot 780 9 84
High material cost 670 7 91
Downtime 370 4 95
Excess inspection 280 3 98
High testing cost 1190 2 100
TOTAL 9070
*Adjusted for estimated inflation since time of original study.

One of these seven categories is called “broke.” It amounts to $5,560,000, or 61 percent

of total. Clearly,
TABLE 5.4there will be
Pareto no major
Analysis by improvement
Products in the total unless there is a
successful attack on broke—this is where the money is concentrated. (Broke is paper mill
dialect for paper so defective that it must be returned to the beaters for reprocessing.)
Product type Annual broke loss,* Percent of Cumulative percent
$thousands broke loss PECI
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A 1320 24 24
 Downtime 370 4 95
Excess inspection 280 3 98
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High testing cost 1190 2 100
TOTAL 9070
KAIZEN TOOLS
*Adjusted for estimated inflation since time of original study.
PARETO ANALYSIS
TABLE 5.4 Pareto Analysis by Products

Product type Annual broke loss,* Percent of Cumulative percent

$thousands broke loss broke loss
A 1320 24 24
B 960 17 41
C 720 13 54
D 680 12 66
E 470 8 74
F 330 (4480) 6 80
47 other types 1080 220 100
TOTAL 53 types 5560 100
*Adjusted for estimated inflation since time of original study.

Six of the 53 product types account for $4,480,000, which is 80 percent of the $5,560,000.
There will be no major improvement in broke unless there is a successful attack on these
six types of paper. Note that studying 12 percent of the product types results in attacking
80 percent of the cost of broke.
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KAIZEN TOOLS
5.22 SECTION FIVE
PARETO ANALYSIS
TABLE 5.5 Matrix of Quality Costs*

Type Trim, Visual defects,† Caliper, Tear, Porosity, All other causes, Total,
$thousands $thousands $thousands $thousands $thousands $thousands $thousands
A 270 94 None‡ 162 430 364 1320
B 120 33 None‡ 612 58 137 960
C 95 78 380 31 74 62 720
D 82 103 None‡ 90 297 108 680
E 54 108 None‡ 246 None‡ 62 470
F 51 49 39 16 33 142 330
TOTAL 672 465 419 1157 892 875 4480
*Adjusted for estimated inflation since time of original study.
†Slime spots, holes, wrinkles, etc.
‡Not a specified requirement for this type.

The largest number is $612,000 for “tear” on paper type B. Next comes $430,000 for
“porosity” on paper type A, and so on. Each such large number has a high likelihood of
being nominated for an improvement project.

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 D 82 103 None‡ 90 297 108 680
E 54 108 None‡ 246 None‡ 62 470
F 51 49 39 16 33 142 330
TOTAL 672 465 419 1157 892 875 4480 26
*Adjusted for estimated inflation since time of original study.
†Slime spots, holes, wrinkles, etc.
‡Not a specified requirement for this type.

KAIZEN TOOLS
PARETO ANALYSIS

FIGURE 5.8 Pareto analysis: annual loss by category.

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KAIZEN TOOLS
PARETO ANALYSIS THE QUALITY IMPROVEMENT PROCESS 5.23

Key: Loss Cum. Loss Type % Loss Cum. %

A 1,320,000 1,320,000 A 24 24 1320 1320
B 960,000 2,280,000 B 17 41 960 2280
C 720,000 3,000,000 C 13 54 720 3000
D 680,000 3,680,000 D 12 66 680 3680
E 470,000 4,150,000 E 8 75 470 4150
F 330,000 4,480,000 F 6 81 330 4480
Other 1,080,000 5,560,000 Other 19 100 1080 5560
TOTAL 5,560,000 100 5560

6
100
Annual Loss, $ Millions

Loss
Cum Loss 80

Percent of Total
4
60

2 40

20

0 0
A B C D E F Other
Paper Type
FIGURE 5.9 Pareto analysis: annual loss by paper type.

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KAIZEN TOOLS
PARETO ANALYSIS
5
100
Annual Loss, $ Millions

4 Loss
Cum Loss 80

Percent of Total
3
60
2 Key:
40
Ca Caliper
1 20 Po Porosity
Te Teat
Tear
0 0 Tr Trim
Te

Ca

Te

s
-T

er
-T
-P

-P
B-

E-
C-

th
A
A

O
Paper Type – Defect Type
FIGURE 5.10 Pareto analysis: annual loss by defect type.

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KAIZEN TOOLS
PARETO ANALYSIS

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KAIZEN TOOLS
KAIZEN EVENTS
• Done in Gemba.
• Use of standard methodology.
– Small team (5 – 10 members)
– Using cross-functional teams, predominantly from the workforce
– “Supply” and “Customer” departments present
– Support Department as needed (Maintenance; Quality)
– Limited in time (typically one week deployment)
– During that week, the team members should be “cut” from their
everyday job: full time dedication to Kaizen event (no phone calls,
no e-mails, etc)
– Supply training in basic problem solving tools: brainstorming, cause-
and-effect, …
– Facilitator should be well trained and respected

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KAIZEN TOOLS
KAIZEN EVENTS
• Gaining results with low cost, aiming the elimination
of Muda (wastes)
• Holding action-orientated Kaizen events
• With team member authority/autonomy
• Well-defined problem scope: ‘Reduction of waste’ ;
‘Increase in productivity’; ‘Improvement of quality’
• With management support
• Having rewards and recognition for team members
• Organizational policies and procedures to support
Kaizen events, e.g., a “no layoffs” policy
• Must include “follow-up” events to avoid “back-slide”
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KAIZEN TOOLS
KAIZEN EVENTS

Time line:
W-3 W-2 W W+2 W+7
1 d. prep. 1 d. prep. 5 d. intensive 1 d. follow up 2 d. follow up

KAIZEN Week
Kaikaku
Collect Data

Follow up (check & Follow up (check &

act) act)

Moderator and
team leader
Target and team ready
building
Results and
Presentation

Source : Kaizen Institute

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KAIZEN TOOLS
KAIZEN EVENTS
• Holding a Kaizen Event:
– Day 1: Define your goals for the event. Map and measure the
process’s current state and identify wastes. Decide on desired
results.
– Day 2: Consider root causes of wastes and identify possible
solutions. Achieve consensus on improvements to be implemented.
Document resources needed to apply improvements.
– Day 3: Implement the improvements.
– Day 4: Test the improvements. Measure the results of
improvements made and apply any necessary adjustments.
Standardize and document new procedures.
– Day 5: Train employees on new standard work procedures.
Communicate the changes to the organization. Recognize and
reward team members who contributed to success.

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KAIZEN TOOLS
KAIZEN EVENTS
• Major barriers:
– ‘Insufficient awareness’
– Insufficient implementation assistance
– ‘Backsliding to the old days of working’
– ‘Staff attitude’
– Insufficient knowledge and Employees’ skills

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KAIZEN TOOLS
KAIZEN EVENTS
• References:
– Glover, W. J., Farris, J. A., & Van Aken, E. M. (2014). Kaizen
events: Assessing the existing literature and convergence of
practices. Engineering Management Journal, 26(1), 39-61.
– Garza-Reyes, Jose Arturo, Christos Christopoulos, Anil Kumar,
Sunil Luthra, Fernando González-Aleu, Vikas Kumar, and Bernardo
Villarreal. "Deploying Kaizen events in the manufacturing industry:
an investigation into managerial factors." Production Planning &
Control 33, no. 5 (2022): 427-449.

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KAIZEN TOOLS

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