Kaizen Institue (India)

KAIZEN INSTITUE (INDIA)
present a workshop on
KAIZEN
by
S. DURAI RAJAN
CHIEF OPERATING OFFICER,
KAIZEN INSTITUTE – AFRICA, ASIA-PACIFIC
2000
KAIZEN INSTITUTE (INDIA) 1

Impact of Kaizen Workshops
Typical results of Kaizen workshops have been:

• 50~70% reduction in THROUGHPUT time
• 20~40% increase in efficiency
• 20~40% savings in EXPENSES
• 40%-60% reduction in errors
• >50% release of space
• Significant improvement in morale
• Empowered human resource
• Discovery of new capabilities
Kaizen Stories
A FEW
IMPORVEMENTS
UNDER KAIZEN
PARADIGMS

Taj Goa - AIR-PORT TRANSFER
–
En Route- Observed
• Long waiting periods both at
the airport and at the hotel
• Monotony of the long drive
• Guest interaction with the
hotel staff.
• Insufficient Arrival and
Departure details
• Condition of the coaches
En Route-Solutions
TAKEN MEASURES TO
ENSURE :
• CLEAN COACHES
• CAPTURE OF ARR. & DEP.
DETAILS
• QUIZ ON ARR & DEP.
• PRE-REGISTRATION IN
COACH - LESS WAITING
• USE OF SMALLER COACHES

En-Route 72 day plan
• More smaller coaches to

be commissioned
• Fine tune guest registration
procedure during transit.
• System to review the quiz
feature periodically.
• Improve work environment
at the airport.

En Route- Result!!
The competition is
left far behind !!

Muda attacked; Taj Mahal - Delhi
Reducing Wait at Porch
• Observed “before”
• Why guest waits?
Car parked far!
Why? No space!
• Observed space.
• Broke walls.
• Added 25% cars
July 1999
• Standardized layout.
Mura attacked; Taj Residency, B’lore
Reducing Wait at Coffee Shop
• Why delay? No misa
• Why? Space short
• Put single piece flow in
dishwashing
• No more delay
• 25% cutlery removed
• Kitchen now spacious
June 1999
Muri attacked
Quicker Room Service -Taj, Taj,…
• Why delay?
Misa takes time
Order flows slowly
• Cellular layout made
Misa takes 30 secs!
• Eliminated Captain
• 50% reduction in time
June , July 1999
Attacking Cost – Inventory mgmt.
- Taj Mahal, Delhi
• Receipt takes 6 hrs
• High Inventory
• Mapped process
• Did Seiri & Attacked muda
• Redesigned for FLOW
• Introduced Kanban
• Receipt takes < 2 hrs
July 1999 • Rs.30 lakh released
• 3000 sq. ft. prime area
released.
Castrol - Reducing Wasteful Work
• Wasteful work
reduction (July 98 ~
Feb 99) reduced
manpower by 15%
• Next exercise (May99)
raised output by 20%
• Annual Extra Output:
$ 1,000,000
Jollyboard – A Case of Forfeited Profit
• Gemba Kaizen
workshop gives
additional output of
$200,000 per annum
• Spotless automobile
quality hardboard -
diagnosed how to
produce it.

Ispat Industries Ltd.
Prevention through Process observation
• Kaizen Problem:
Edges get damaged
Ispat Industries Ltd. • Process observation:
April 99 6 hours with team
• Diagnosed; solved
• Savings:
$50,000 per annum

Morarjee Mills, Mumbai
Gain from Kaizen Paradigm - COT
• Kaizen Problem:
Blow room down 35%
• Observation: 1 day
Basic conditions poor
• Initiated daily COT
– Cleaning
– Oiling
– Tightening
• Output up by few
millions
TELCO – Mumbai
Kaizen for Customer Satisfaction
• TELCO’s spare part sales dept
processed only 24% of
VENDOR orders in <3 days.
• Process observed.
• Applied integration of labour
and single piece flow concepts.
• Now, >80% orders are
processed in < three days

TAJ Hotel - Defect free product by
Deliberate Overlapping
• Kaizen Problem:
Minor defects in rooms
ZERO • Observation:
DEFECT Doing Room by self
• Created: Overlapping
Responsibility with
Maint. & House-keeping
• How much more
business?
Upstream Management
Q Check Point
1
Good to Find the
Customer Problems
Bad
Rework/Reject
Q Check Points
2
to Solve
Customer the Problems
Rework/Reject
Q Check Point
3
Design/ to Avoid/ Prevent
Development Customer the Problems

Kaizen - What is it?
PROFIT
PROFIT
• PROCESS
IMPROVEMENT
• OBSERVATION
• ZERO INVESTMENT
- LEAST MONEY
• LITTLE TIME
Kaizen • HUMAN
DEVELOPMENT/
EMPOWERMENT

Kaizen - What is it?
• Process Improvement
• Observation
• Use of new Paradigms
• Short time
• Zero Investment
• Human Development & Empowerment
• Profits & Savings - Plenty
Kaizen - Typical Misconceptions
• Kaizen is only for

employees.
• Kaizen is only a sort of
an implemented
suggestion scheme.
• Any implemented
improvement is Kaizen
• Kaizen is: SMALL
improvements only.

KAIZEN – Original Definition
= KAI = CHANGE
= ZEN = GOOD
(FOR THE BETTER)
= KAIZEN = CONTINUAL
IMPROVEMENT
J22
© 1986-2000 Kaizen Institute
What really is KaizenR?
Kai + zen
change + good
made thru
Process Observation
under
Kaizen Paradigms
KAIZEN Umbrella
KAIZEN
•Quality Function Deployment •Kanban
•Total Quality Control •Just In Time
•QC Circles •Zero Defects
•Suggestion System •Small-Group Activities
•Automation •Worker/Management Relations
•Total Productive Maintenance •Productivity Improvement

Why Little Money & Time
Kaizen replaces money and time by:

• Observation
• intelligence
• Physical effort
• Paradigms of high productivity &
quality

Who does KAIZEN
TOP
MANAGEMENT Innovation
MIDDLE
MANAGEMENT KAIZEN
SUPERVISORS
Maintenance
(Current Status)
WORKERS

How to do Kaizen?
• Cross-functional team
• Reserve time slot for Kaizen
• Do not do routine work during kaizen time
• Process observation first
• Do it yourself next
• Diagnose and take countermeasure today

PDCA
Act Plan
72 day plan 72 hour
plan
Check Do
At end of 72 hours 72 hour
The Improvement Cycle doing
K095
Why Cross-functional Team &
Time Slot?
• Key is: observation
• Observation needs FOCUSED minds
• Our eyes have got coloured spectacles
• Together we see (almost) all
• Can’t be sure of decision if alone
• Many hands make light work
• We encourage each other& raise energy
levels
Three most important requirements of
Kaizen:
• Top management
commitment
• Top management
commitment
• Top management
commitment
Commitment is shown
by
physical presence

Traditional Organization
Top
Customer Mgmt. Customer
expectations Middle satisfaction

Mgmt.
Gemba

Organization for Kaizen
Customer
Gemba
Customer
expectations Organization satisfaction

to
support

House of Gemba Management
Profit
management
Quality Cost D
elivery
& safety management
management
management
Workers’ Products
Information Equipment
operations & materials
Standardization
5S (Good housekeeping)
Muda Elimination
Team-work Morale enhancement Suggestions
self-discipline QC circles
The 5 Gemba Principles
1. When find an abnormality, go to Gemba first

2. Check with Gembutsu (machine, material,
failures, rejects, unsafe conditions etc.)
3. Take temporary countermeasures on the spot
4. Remove root cause
5. Standardize to prevent trouble

How to Observe?
• Go to the gemba
• Do cleaning yourself
• Do not sit anywhere
Hawk • Do not ask for ideas
• Look first for Muda
• Then look for Mura
• Finally look for Muri

7 - Muda List
1. Muda of over-production
2. Muda of waiting
3. Muda of transport
4. Muda of processing
5. Muda of inventory
6. Muda of motion
7. Muda of repair/rejects

Speak with Data
• Gather data using all five senses

• Go to gemba for data
• Analyze data - “When you see data, doubt it”
• Make decisions with data
• Take action based on data
• Check results - “When you see data, doubt it”
B565
Muda - how to see it?
• What should flow

– Material in a factory
– guest in a hotel
– document in an office
• Is it stopping? Muda!
• Is it retracting?Muda!
Muda = “Waste” • Is it piling up? Muda!
with a special meaning • Reprocessing? Muda!
Mura - Inconsitencies
• Happens only sometimes?

Mura!
• Happens to only some
people? Mura!
• Happens only some
places? Mura!
• Ask “Why” five times
• Use diagnostic method
like Kepner-Tregoe
Muri - Physical Strain
• Bend to work? Muri!

• Large batch? Muri
• Avoidable movements?
Muri!
• Do not reduce walking
by making big batches
• Standing at work is
healthier & more
efficient than sitting
Basic Kaizen Paradigm: COT & F
• DO it Yourself
• Do not Delegate
• Dirty own hands
• Cleaning is Inspection
Cleaning • Cleaning is a Health Check
Oiling • Loose & unlubricated
Tightening machines do not allow
Filing good methods to work

Magic Formulae
When you don’t know

what to do:
• Clean up something
• File and arrange
• Start measuring
some parameters
• Look up manuals

Key Kaizen Paradigm # 1
Single Piece Flow
• Big batch = Big muda

• Bigger batch =
Bigger muda
• Small batch is better
• Single Piece Flow is best
• Single piece flow = mass
customization

Unification of Labour
• Division of labour produces

large muda
• More division = more muda
• Unify labour
• Minimize handoffs
• Less handoffs = better quality
• Goal: One person does
complete work

Create Responsibility Overlaps
• Sharper division = more

muda & poorer quality
• Both are responsible
• Try playing football
without overlapping
responsibilities!

Perfect Your Machine First
RESTORE FIRST
• No Kaizen before
Restoration
• Restoration sequence:
– Machine
– Materials
– Method
– Man (people)
Non-Individual Performance Appraisal
• Beware of appraising
individual performance
against individual key
result areas!
• It breaks teamwork &
de-motivates!
• Do joint appraisals.
• Give top priority to
teamwork in appraisals.

Kaizen Tools & Techniques
• Tools & techniques used will include:

– Process Mapping
– Kaizen Costing
– 8-D (Kepner Tregoe Method for Diagnosis)
– Design of Experiments (DOE)
– Theory of Constraints (TOC)
– GEBA KAIZEN
World Class Paradigms will be used.

KAIZENCOSTING Umbrella
Kaizencosting
• Gembakaizen Diagnostics • Customer Profitability
• Kaizen measures for CI • Product-level QF Costing
• Forfeited Profit Accounting • Market-In Costing
• Direct Product Profitability • Kanban & Supply Chain Mgmt.
• Product Life Cycle Cost • Inter-organization Cost Mgmt.
•
•
J49
© 1986-2000 Kaizen Institute
KAIZEN PARADIGM
Value enhancers Waste Drivers
TOP MGMENT INNOVATION
MIDDLE MGMENT KAIZEN

Deviation
SUPERVISORS
MAINTENANCE Drivers
WORKERS

ESSENCE OF KAIZEN
Activity = Work + Muda
Expenditure = Cost + Waste

WHAT IS COST?
COST IS THE AMOUNT OF EXPENSES

(ACTUAL/ NOTIONAL) INCURRED ON OR
ATTRIBUTABLE TO A SPECIFIED THING OR
ACTIVITY.
COST IS NOT ‘‘ WHAT IS INCURRED’’. IT

SHOULD REFLECT ONLY PURPOSEFUL
SPENDING.

Need a Tool
To measure and analyze:

Differentials – (Muda & Mura) to drive the
Kaizen initiatives & achieve waste & cost
reduction targets.
Causal factors –
Deviation Drivers
Waste Drivers
Value Enhancers
Benefits of kaizen efforts at the gemba

ACTIVITY BASED COSTING
A POWERFUL TOOL FOR INTELLIGENT

DECISION MAKING ACROSS STRATEGIC,
OPERATIONAL AND TACTICAL LEVELS.
EMINENTLY SUITABLE FOR FORSTERING
CONTIUOUS IMPROVEMENT CULTURE IN
THE ORGANISATION.

ABM - Kaizen Interaction
Value Enhancers
Waste Deviation
Drivers Drivers
Close gap between target

and actual costs
Information
Exchange
Process Analysis
Generate Develop Cost

Reports Model
Capture Data

Where is Gemba Kaizen Applicable?
• Gemba Kaizen is applicable in any industry, sector-

manufacturing and service, functional area.
• It examines processes involved within and between
functional areas; isolates the non value-adding
components of the process and helps reduce them.
• It synergizes with technology -
Technology focuses on value-adding work.
Gemba Kaizen addresses the rest

Kaizen Implementation
• Start with a Kaizen Workshop:

– Identification of key improvement opportunities.
– Kaizen Workshop of two to three days duration,
where improvements are actually implemented.
– A follow up visit confirms the gains, and reinforces
the learning.
• Repeated application of Kaizen Workshops
thru 72 hour and 72 day cycles.
• Training in Kaizen paradigms and problem-
solving techniques.
Schedule for Kaizen Workshop
Day - 1
• Problems or processes, to be worked on, are
identified today at the end of the training.
• Groups are made today - one group for each
problem area or process.
• We start at a fixed time in the morning at gemba.

Schedule for Day 2 -
Do It To-day
• First, each group does process observation,
diagnosis, and planning countermeasures.
• Countermeasures planned are implemented
by each group.
• Temporary countermeasures are preferred to
check outcome.
• Permissions are taken by evening.
• We go home only on completing the work.

Day 3 - Do it Now
• Full scale implementation is done, taking help

where needed.
• Ensure involvement of people at Gemba
• Operate in the changed environment
• PDCS applied
• We go home only on completing the work.

Day 4 - Measure & Standardize
• PDCS applied
• Evaluate and quantify the benefits
• Prepare 36/ 72 -day plan
• Presentation is made at the end of the
workshop.
• Each person shares his/her experience for 1
min.

Kaizen Workshop -Basic Rules
• Do not sit while working.

• Do not take ‘NO’ for an answer.
• Do not go by others’ opinions.
• Trust your own eyes and hands only.
• Clean something when you are foxed.
• Do it NOW! Go all out for action!
• Do not go home till you complete the job.
Where Will it End?
Where you
want it to.
There is
ALWAYS
a BETTER way

Rules for the Day
• Do it Today
• Do not take NO for an
answer
• Do not find out why it
cannot or should not be
done. Do it.
• Do not wait for
perfection; 60% is good
enough. Move!
The FIVE Step
KAIZEN Movement
Seiri (Sort out)
Seiton (put things in order)
Seiso (Sparkle)
Seiketsu (Standardise)
Shitsuke (Self discipline)

Harmony & Cooperation
Alone we are weak; together we are strong.

We shall work together, as a family, in mutual trust,
and responsibility.
An association of talented people is only an undisciplined
mob, unless each member is, full of this spirit.
Progress can be achieved, only if, we are ever ready,
to change ourselves.
As the world moves forward, we must keep in step.
Working in a company, is all about teamwork.

In Retrospect:
What did we achieve in Kaizen Workshop?
• Key processes were identified

• Clutter around these processes was removed (Now
processes are more visible)
• Teamwork was stimulated
• Empowerment & Action happened
• Results became visible in short time and money
• Morale is up; fresh breeze blew; cobwebs fell.
• New challenges have become visible
In Prospect: What do we need to do now?
How do we sustain the momentum?
We make a six week Plan:

• Each team continues with same project
• Every Saturday, team does kaizen workshop
• No routine work every Saturday
• Consultant available every alternate Saturday
• Team identifies each step of the process
• Team eliminates the ‘muda’ steps and strengthens
the value-adding steps

How to monitor progress
• Measure progress on only 4 parameters:

• Defects produced - number & severity
• Throughput time
• Expenditure (= useful cost + wasteful cost)
• Customer ‘dazzling’ level
• Put up charts displaying progress on these
parameters.
Power Tools to Become World- Class
Implement world-class paradigms:

• Restore facilities (do 5-S; remove clutter)
• Single piece flow (smaller batch)
• Unification of labour (no handoffs)
• Realign Responsibility by Process (not function);
create responsibility overlaps
• Introduce process KRAs on 4 parameters
• Make teamwork into veto KRA
Review After 6 Weeks
Will Your Process become a Benchmark?
Remember!
Alone we are weak;
together we are strong!
Happy kaizening
Thank You
Happy Kaizening

Kaizen Institue (India)

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KAIZEN INSTITUE (INDIA)

KAIZEN INSTITUTE (INDIA) 1

Typical results of Kaizen workshops have been:

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• More smaller coaches to

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• Kaizen is only for

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Kaizen replaces money and time by:

KAIZEN INSTITUTE (INDIA) 25

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expectations Middle satisfaction

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expectations Organization satisfaction

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1. When find an abnormality, go to Gemba first

KAIZEN INSTITUTE (INDIA) 34

KAIZEN INSTITUTE (INDIA) 35

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• Gather data using all five senses

• What should flow

• Happens only sometimes?

• Bend to work? Muri!

KAIZEN INSTITUTE (INDIA) 41

When you don’t know

KAIZEN INSTITUTE (INDIA) 42

• Big batch = Big muda

KAIZEN INSTITUTE (INDIA) 43

• Division of labour produces

KAIZEN INSTITUTE (INDIA) 44

• Sharper division = more

KAIZEN INSTITUTE (INDIA) 45

KAIZEN INSTITUTE (INDIA) 47

• Tools & techniques used will include:

World Class Paradigms will be used.

KAIZEN INSTITUTE (INDIA) 48

Value enhancers Waste Drivers

TOP MGMENT INNOVATION

MIDDLE MGMENT KAIZEN

KAIZEN INSTITUTE (INDIA) 50

Activity = Work + Muda

Expenditure = Cost + Waste

KAIZEN INSTITUTE (INDIA) 51

COST IS THE AMOUNT OF EXPENSES

COST IS NOT ‘‘ WHAT IS INCURRED’’. IT

KAIZEN INSTITUTE (INDIA) 52

To measure and analyze:

KAIZEN INSTITUTE (INDIA) 53

A POWERFUL TOOL FOR INTELLIGENT

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Close gap between target

Generate Develop Cost

KAIZEN INSTITUTE (INDIA) 55