Kaizen, Six Sigma and Seven Wastes

Presented by:-
Devyani Singh
Koustav Ghosh
Pradeep Singh
Kaizen
 Kaizen

Masaaki Imai is known as the developer of Kaizen.

He is known as the father of continual improvement.
Author of the book Kaizen, Key to Japan’s
competitive success and Gemba Kaizen.

DEFINITION: Kaizen is defined as a continuous

effort by each and every employee (from the CEO to
field staff) to ensure improvement of all processes
and systems of a particular organization.
Kaizen works on the following basic principle:
“Change is for good”.
 TYPES OF
KAIZEN

• Point Kaizen
• Line Kaizen
• Plane Kaizen
• Cube Kaizen
 Kaizen
Methodology

• Finding out the pain area

• Analysis of the pain area
3Ms- MURA, MURI, MUDA
- Muda(non-value adding work): Is avoided through just in
time systems which are just based on little or no inventory,
by supplying the production process with the right part, at
the right time in the right amount.
- Muri(Overburden): can be avoided through standardized
work, to achieve standard condition or output must be
defined to assure effective judgment of quality
- Mura(unevenness): can be avoided by identifying and
eliminating non value adding and unnecessary activities.
 Gemba
Kaizen

Gemba is a Japanese word

meaning ‘real place’, where the real
action takes place. In business
Gemba is ‘shop floor’ or ‘production
place’, where the value adding
activities to satisfy the customer are
carried out.
3 Ground Rules for practicing
Kaizen in Gemba are:
• House Keeping
• Muda Elimination
• Standardization
 Housekeepi
ng
5S is a method of organizing a workplace,
especially a shared workplace and keeping it
organized.
To take the kaizen concept to its ultimate level to
its simplicity, it offered the following “5S” steps:
SEIRI - SEIRI stands for Sort Out. According to
Seiri, employees should sort out and organize
things well.
SEITION - Seition means to Organize.
SEISO - The word “SEISO” means shine the
workplace.
SEIKETSU-SEIKETSU refers to Standardization.
SHITSUKE or Self Discipline - Employees need
 Muda
Elimination

Work that does not add value and is not necessary

• Transport
• Inventory
• Motion
• Waiting
• Overproduction
• Over processing
• Defects
 Standardizati
on

Standardization may be
defined as the best way to
do the job.
Products and services are
created as a result of
process. Certain
processes must be
maintained at each
process in order to assure
quality.
Standards can also
prevent reoccurrence of
the same problem.
 Toyota Production
System

The four main ideas of Toyota’s

Way:
• Having a long term philosophy
that drives a long term
approach to building a learning
organisation
• The right process will produce
the right results
• Add value to the organization
by developing its people &
partners
• Continuously solving root
problems to drive
 Benefits of
Kaizen

The advantages of
implementing Kaizen
include, but are not limited
to:
• Utilization of Resources
• Increased efficiency
• Employee satisfaction
• Safety improvements
Six Sigma in
Lean
Manufacturing
 About Six Sigma

Six Sigma Was Developed at Motorola in the 1980’s as a

Method to
improve Process Quality.

It is basically a set of tools and techniques that enable process

improvement.

It Was First Used to Improve Manufacturing Process Capability

and
then Migrated to Business Processes Capability.

Companies That Have Deployed Six Sigma: Bank of America,

Motorola,
 What is Six
Sigma?
Six Sigma is a methodology that helps
improve
business processes by using statistical
analysis.

Objective: Minimize the variability in

business
and manufacturing processes.

It is a data-driven and highly disciplined

methodology and approach that ensures
elimination of defects in any type of
business or organizational process.
 Definition of Six
Sigma
Business Definition

A break through strategy to significantly improve

customer satisfaction and shareholder value by reducing variability
in every aspect of business..

Technical Definition

A statistical term signifying 3.4 defects per million opportunities.

 Philosophy of Six
Sigma
• CTQ - Know what is important to the Customer

• Reduce defects - Six Sigma emphasizes on reducing the defects

to the
level of 3.4 defects per million opportunities (DPMO)

• Target at the mean – Six Sigma aims to achieve the centre of

Tolerance

• Reducing Variation – Variation is the Enemy of Quality

Six Sigma and
Processes
 Key Concepts of
Six Sigma
• Critical to Quality: Attributes most important to the customer

• Defect: Failing to deliver what the customer wants

• Process Capability: What a process can deliver

• Variation: What the customer sees and feels

• Stable Operations: Ensuring consistent, predictable processes to

improve what the customer sees and feels

• Design for Six Sigma: Designing to meet customer needs and

process capability
 Process Capability of
Six Sigma
Process Capability means the ability to
do a particular work without producing
or producing least defects.

It measures the “goodness of a

process”.

Compares the “voice of the process”

with
“voice of the customer”.

Process Capability analysis helps to

determine the ability to manufacture
parts within the tolerance limits and
Six Sigma Methodologies - DMAIC and
 DMAI
C
D - Define - Define the project Targets
and Customer

M - Measure – Measure the process to

determine the current process
performance

A – Analyze – Find out the root causes of

defects

I – Improve – Improve the process by

removing defects
 DMA
DV
D - Define the project goals and customer
deliverables

M - Measure the process to determine the

current performance level

A - Analyze and determine the root causes of

defects

D - Design the process in detail to meet the

customer needs

V - Verify the design performance and it’s ability

to meet customer needs
 Benefits of Six
Sigma

Time Management Employee Motivation Strategic Planning

Improved Customer Loyalty Reduced Cycle Time Supply Chain Manageme

 The Seven
Wastes in Lean
Manufacturing
 Types of
Work
Costs Time,
Value Adding Valuable Costs VALUABL
Effort Money, E
Adds Value

Valuele
ss
Effort Costs Time,
Non-Value Adding WASTE
Costs Money,
Obvio Adds No
us Value
Waste
 Waste

TOYOTA defines waste as: Anything other than the minimum

amount of equipment, materials, parts, and working time absolutely
essential to production.

The seven wastes are categories of unproductive manufacturing

practices identified by Taiichi Ohno, the father of the Toyota
Production System (TPS).

Every activity should be considered as waste, unless it:

-Meets an explicit customer requirement.
-Cannot be shown to be performed more economically.
 The 7
Wastes
To produce sooner,faster or
in greater quantities than
customer demand.
Over Processing
Overproduction
Processing beyond
the standard Inventory
required by the
customer. 11 Raw material,

7
7 22
work in progress or
finished goods which
is not having value
added to it.
Rework
Non right
first time. Waiting
Repetition
or correction
6
6 3 People or parts
of a process. that wait for
a work cycle to
be completed.

Transportation 5 4 Motion Unnecessary movement

Unnecessary movement of people or of people, parts or
parts between processes. machines within
a process.
 Overproductio
n
 Overproduction causes other wastes
and obscures the need for
improvement
 It results from producing more (or
faster) than required
 Overproduction is caused by
 Large batch sizes
 Unreliable processes
 Unstable schedules Avoid overproduction by
 Unbalanced cells or departments balancing supply to
demand
 Inventory
• Unnecessary inventory that accumulates
before or after a process is an indication
that continuous flow is not being achieved.
• Excess inventory can be caused by;
– Lack of balance in work flow, forcing
inventory build-up between processes
– Large batch sizes
– Failure to observe first in first out -
stagnant materials
– Incapable processes
– Long changeover time
Stock wastes space and
effort
 Waiting

 Waste of waiting is any idle time

produced when two interdependent
processes are not completely
synchronised
 Waiting results from:
 Poor man / machine coordination
 Long changeovers
 Unreliable processes / quality
 Batch completion, not single piece
Waiting time results from
transfer between operations failure to synchronize
 Time required to perform rework activities
 Motion

 Waste of motion is any motion of man

and / or equipment that does not add
value to the product or service.

 Wasteful motion is caused by:

 Poor workstation layout -
excessive walking, bending,
reaching
 Poor method design - transferring
parts from one hand to another
 Poor workplace organisation
 Large batch sizes Work smarter not
 Reorientation of materials harder
 Transpor
t
 Transport waste is material movement
that is not directly associated with a
value adding process.
 Excess transportation may be caused by
:
• Poor layouts
• Large distance between operations
• Lengthy, or complex material
handling systems
• Large batch sizes
• Working to faster rate than Poor layout
customer demand (overproduction) exacerbates
• Multiple storage locations
transportation wastes
 Defects

 Waste of correction includes additional work

performed on a product or service
 Caused by no or unclear operating
procedure / specifications
 Defects are caused by
• Inadequate training
• Skills shortage
• Incapable processes
• Incapable suppliers
• Operator error
• Excessive stock Right first time avoids
• Transportation scrap & rework
 Over-
Processing
• Over processing is putting more
into the product than is valued by
the customer,
• painting of unseen areas
• unnecessarily tight tolerances
• cleaning and polishing beyond the
level required
• The goal is to do only the level of
processing to match that which is
useful and necessary
• Over-processing is caused by: Clear, standardized
instructions avoid over-
• No standardization of best processing
techniques
 Benefits of Eliminating
Waste

Improves process efficiency Reduces cost

Ability to work faster Increases productivity