20/11/22 Bilal Iqbal MIan, CUI Sahiwal

Dua to Recite Before Study

Bilal Iqbal MIan, CUI Sahiwal

Lecture objective
 To develop an understanding of quality improvement
philosophy and tools
 To be able to implement quality improvement in any sphere of
life
 To create culture of quality improvement with zeal and zest

Bilal Iqbal MIan, CUI Sahiwal

Kaizen
 The Key to Japan’s
Competitive Success

20/11/22 Bilal Iqbal MIan, CUI Sahiwal

 Masaaki Imai-
known as the developer of Kaizen

Kaizen originated in Japan in 1950

First, it was been introduced and applied by Imai in 1986 to
improve efficiency, productivity and competitiveness in Toyota

“If you learn only one word of

Japanese, make it KAIZEN.” Masaaki Imai

Bilal Iqbal MIan, CUI Sahiwal

 What is KAIZEN?
Kaizen translated literally means
'Change for Good'.
Kai – to take apart; to change
Zen – ‘good’
Kaizen: to take apart and
change for good

Bilal Iqbal MIan, CUI Sahiwal

The three different understandings of Kaizen:

1. Let’s start with the literal dictionary translation of Kaizen,

改善 . In the Japanese language the word Kaizen is derived
from two Kanji, the first ‘Kai’ 改 , meaning ‘change,’ and
the second ‘zen’ 善 , meaning ‘good.’ Hence the literal
meaning of the word being ‘change for the better’ i.e.
improvement. So the average Japanese would use the word
Kaizen to express improvement. Notice there is no reference
to this improvement being continuous or in small steps or
being part of a philosophy or mindset.

Bilal Iqbal MIan, CUI Sahiwal

The three different understandings of Kaizen:

2. The second understanding of Kaizen, 改善 , is that of a

method or business tool for improvement. It could be in a
workshop / group work format, sometimes referred to as
Kaizen workshops or ‘blitz Kaizen,’ or an individual’s
initiative to improve herself.

Bilal Iqbal MIan, CUI Sahiwal

The three different understandings of Kaizen:

3. The third understanding of Kaizen, 改善 , refers to the Kaizen philosophy. In

the 1950’s and 60’s Japanese academics and business leaders noticed that
Toyota was working differently from other manufacturers with far better
results. Its culture and way of working referred to in Japan as Toyota’s
Kaizen mindset, 改善の考え方 , Lean.
 Lean refers to an organisation like a body, where a healthy one is lean and with little fat
versus an unhealthy organization that has lots of waste or Muda, 無駄 .
 Hence the terms Lean Management or Lean Thinking.
 An internal document ‘The Toyota Way 2001,’ トヨタウェイ 2001. This mindset however,
the Kaizen mindset that Toyota in Japan was known for and what the West called Lean
Management, is what Toyota finally labeled as the Toyota Way, トヨタウェイ .
 Over the next few years all the divisions in Toyota adapted and documented the Toyota
pertaining to their areas such as the Toyota Way in R&D and the Toyota Way in Sales &
Marketing.

Bilal Iqbal MIan, CUI Sahiwal

 KaiZen

Bilal Iqbal MIan, CUI Sahiwal

KaiZen - Introduction
 It is a planned and controlled change to achieve
the next step in continual improvement
 Kaizen is a process of continuous incremental
improvement.
 It moves you from the existing Current State
toward the defined Future State you have
established as your goal.

Bilal Iqbal MIan, CUI Sahiwal

KaiZen Blitz (or Kaizen Event)
 The “kaizen blitz” is a five-day continuous improvement activity focused
on a very specific process.
 True Kaizens are typically done as a focused ‘blitz’:
A point in time team effort rather than a gradual metamorphosis
over time.

Bilal Iqbal MIan, CUI Sahiwal

Why Kaizen Events?

Future
Current Kaizen State
State
(Lean)

Kaizen drives the improvements which lead to a leaner

business operating system

Bilal Iqbal MIan, CUI Sahiwal

Two elements of KAIZEN
There are two elements that construct KAIZEN:
Improvement/Change for the better
Ongoing/Continuity/Maintenance

Lacking one of those elements would not be

.considered KAIZEN

The philosophy of Kaizen has kindled considerable

interest among researchers because it increases
productivity of the company and helps to produce
.high-quality products with minimum efforts

Bilal Iqbal MIan, CUI Sahiwal

Kaizen Philosophy
 Kaizen, also known as continuous improvement, is
a long-term approach to work that systematically
seeks to achieve small, incremental changes in
processes in order to improve efficiency and
quality.
 Kaizen can be applied to any kind of work, but it is
perhaps best known for being used in lean
manufacturing and lean programming.
 If a work environment practices kaizen, continuous
improvement is the responsibility of every worker,
not just a selected few.

Bilal Iqbal MIan, CUI Sahiwal

Kaizen Philosophy
 Kaizen can be roughly translated from Japanese
to mean "good change."
 The philosophy behind kaizen is often credited to
Dr. W. Edwards Deming.
 Dr. Deming was invited by Japanese industrial
leaders and engineers to help rebuild Japan after
World War II.
 He was honored for his contributions by Emperor
Hirohito and the Japanese Union of Scientists
and Engineers.

Bilal Iqbal MIan, CUI Sahiwal

What is Kaizen Events?
Evaluate

Implement

Plan and Design

Assess/Reassess

Kaizen activities that address issues over a period of one week had
become the industry norm and they had been named as ‘Kaizen
events’. These small models are used to understand problems and
issues in the business processes, arrive at solutions, and apply
them to improve the processes and eliminate wastes.

Bilal Iqbal MIan, CUI Sahiwal

 Five Main Areas of Kaizen

 Teamwork (Most Important)

 Personal discipline
 Improved morale
 Quality circles
 Suggestions for improvement

Bilal Iqbal MIan, CUI Sahiwal

Who are Stakeholders – Who
benefit from Kaizen?
The principal stakeholders of
Kaizen philosophy are:

 Employees of the organization.

 Top level management
 last level worker in the company.
 External stakeholders like
vendors, customers, and
 Shareholders.

Bilal Iqbal MIan, CUI Sahiwal

The Kaizen Umbrella

 Customer orientation  Kamban

 TQC (total quality  Quality improvement
control)  Just-in-time
 Robotics
 Zero defects
 QC circles
 Small-group activities
 Suggestion system
 Cooperative labor-
 Automation
management relations
 Discipline in the
 Productivity
workplace
 TPM (Total Productive improvement
Maintenance)  New-product
development
Bilal Iqbal MIan, CUI Sahiwal
Benefits of KAIZEN

 Reduces waste- like inventory waste, time waste,

workers motion.
 Improves space utilization, product quality
 Results in higher employee morale and job satisfaction,
lower turn-over.
 Widely acceptable-can be used in both manufacturing
and non-manufacturing environments, for processes as
well as people.
 Highly effective and success-oriented-Kaizen events will
generate quick results, measurable results, establish the
baseline and measure the change.
 A learning experience-every member of a Kaizen Team
will walk away from the event learning something new

Bilal Iqbal MIan, CUI Sahiwal

Pitfalls in KAIZEN

 Resistance to change

 Lack of proper procedure to implement

 Too much suggestion may lead to confusion

and time wastage

Bilal Iqbal MIan, CUI Sahiwal

 Easy Kaizen Flow

1 START 2 3
Establish existence Develop problem
Identify problem
of problem statement

END
7 4
Document/Standardize
Formulate solution(s)
improvements

6 5

Evaluate results Implement solution(s)

Bilal Iqbal MIan, CUI Sahiwal

Kaizen, The Concept

Bilal Iqbal MIan, CUI Sahiwal

 Jobs Function Perceptions

Japanese Western perceptions

perceptions
Top management
tion ti on
a a
nov nov
n
I
ZEN Middle management In
I e
KA e a nc
a nc ten
ten Supervisors a in
in M
Ma
Workers

Bilal Iqbal MIan, CUI Sahiwal

 Middle
Top
Management & Supervisors Workers
Management
Staff

Determine to Use Kaizen in

Deploy and functional rules
introduce Kaizen as a implement Kaizen Engage in Kaizen
corporate strategy goals as directed by through the suggestion
top management system and small
Formulate plans for group activities
through policy Kaizen and provide
Provide support and deployment and cross guidance for workers
direction for Kaizen by functional
allocating resources management
Practice discipline in
Improve the workshop
Use Kaizen in communication with
Establish policy for functional capabilities workers and sustain
Kaizen and cross high morale
functional goals
Establish, maintain,
Engage in continuous
and upgrade standard Support small group self-development to
activities (such as become better
Realize Kaizen goals quality circles) and problem solvers
through policy Make employees
Kaizen-concious the individual
deployment and audits suggestion system
through intensive
training programs
Introduce discipline in
Build system, the workshop
procedures, and Help employees Enhance skills and job
structures conducive develop skills and tools performance expertise
to Kaizen for problem solving Provide Kaizen with cross education
suggestions
Bilal Iqbal MIan, CUI Sahiwal
 Deming Wheel
Design

Research Production

Plan

Sales
Act PDCA Do

Check
Bilal Iqbal MIan, CUI Sahiwal
 Continuous Improvement
KAIZEN

JAPAN
WESTERN
INNOVATI
ON
Breakthrough

Science Technology Design Production Market

Innovation
Bilal Iqbal MIan, CUI Sahiwal KAIZEN
 KAIZEN 1 INNOVATION

Long term Short term

Effect
Un-dramatic Dramatic

Small steps Pace Big steps

Time Intermittent &

Continuous & incremental
frame non incremental

Gradual & consistent Change Abrupt & volatile

Everybody Involvement “Champion”

Collectivism, Rugged individualism, individual

Approach
Bilal Iqbal MIan, CUI Sahiwal ideas & efforts
group efforts, systems approach
 KAIZEN 2 INNOVATION

Maintenance & Scrap

Mode
Improvement & Rebuild

Conventional know-how & state of Technological breakthroughs,

the art
Spark new inventions, new theories

Little investment Practical Large investment

Great effort to maintain Requirements Little effort to maintain

Effort
People Technology
orientation

Process & efforts for Evaluation

Results for profits
better results criteria

Economic
Slow growth economy Bilal Iqbal MIan, CUI Sahiwal Fast growth economy
condition
 INNOVATION KAIZEN

Creativity Adaptability

Individualism Teamwork (system approach)

Specialist oriented Generalist-oriented

Attention to great leaps Attention to details

Technology oriented People oriented

Information: closed, proprietary Information: open, shared

Functional (specialist) orientation Cross functional orientation

Seek new technology Build on existing technology

Line + staff Cross functional organization

Limited feedback Comprehensive feedback

Bilal Iqbal MIan, CUI Sahiwal
Upcoming Japanese product perceptions

Technology Level Preferred Process Product

Innovative product
High Technology oriented
with Kaizen
Technology innovation
orientation

Technology oriented
KAIZEN

People oriented Kaizen oriented

Low Technology
KAIZEN product

Bilal Iqbal MIan, CUI Sahiwal

Kaizen by Total Quality Control
(TQC)
“The Kaizen philosophy assures that our way of life, or our home
life, deserves to be constantly improved”
- Masaaki Imai

Bilal Iqbal MIan, CUI Sahiwal

1 Quality control deals with the Quality of people

2 Speaks with data

3 Quality first, not Profit first

4 Manage the previous process ( Upstream)

5 The next process is the customer

6 Customer oriented TQC, not manufacturer oriented TQC

7 TQC starts with training and ends with training

8 Cross Functional Management to Facilitate Kaizen

9 Follow PDCA cycles

10 Standardize the
Bilal Iqbal results
MIan, CUI Sahiwal
 1. Quality assurance

TQC 2. Cost reduction

3. Meeting production quota

4. Meeting delivery schedule

5. Safety

6. New-product development

7. Productivity improvement

8. Supplier management

TQC
Bilal Iqbal MIan, CUI Sahiwal
 Manpower

Technique

Method

Time

Facilities
Muda (Waste)
Muri (Strain) Jigs and tools
Mura (Discrepancy) Materials

Production volume

Inventory

Place

Way of thinking
Bilal Iqbal MIan, CUI Sahiwal
 ACT

PLAN

CHECK
Definitions
Standardization
Confirmation
Analysis of
ofof problem
problem
results
Identification
Implementation
Planning of causes
counter-measures

DO
Bilal Iqbal MIan, CUI Sahiwal
Kaizen The Practice

Bilal Iqbal MIan, CUI Sahiwal

 MANUFACTURING
OBJECTIVES
Maintain a
questioning &
Use tools &
Achieve open-minded
facilitates to
maximum Maintain attitude for
Eliminate hard maximize
quality with minimum constant
work quality &
maximum inventory improvement
efficiency &
efficiency based on
minimize effort
teamwork &
cooperation

Bilal Iqbal MIan, CUI Sahiwal

 Waste of Waste in Waste in
REJECTS DESIGN WIP

quality cost delivery

NINE
WASTES !! product

Waste in
Method / system
FIRST PHASE OF PRODUCTION

resources

manpower facilities money

Waste in Waste in Waste in Waste in Waste in

MOTION MANAGEMENT MANPOWER
Bilal Iqbal MIan, CUI Sahiwal
FACILITIES EXPENSES
 5 S Concept:
Seiton
Straightening Out

Seiri A C Seiso
Sorting Cleaning Up

5s

Shitsuke E D Seiketsu
Sustaining the Standardizing
Practice Bilal Iqbal MIan, CUI Sahiwal
 Shortened lead time

Reduced time spent on non-process

work

Reduced inventory

J
I
T Better balance between different
processes
Bilal Iqbal MIan, CUI Sahiwal
Problem clarification
 Marketing

Top Production
Product Administration
&
management Purchasing
planning
responsibility:

QCS
responsibility : Provide
Strategy & support
Planning

Production
Design
preparation

Bilal Iqbal MIan, CUI Sahiwal

Kaizen Management

Bilal Iqbal MIan, CUI Sahiwal

Management & Labor ;
Enemies or Allies?

Cooperation
Working together to bake bigger
pie

Confrontation
fighting over how to divide the
Bilal Iqbal pie
MIan, CUI Sahiwal
 Manager's first job is to learn to communicate with his
employees so both workers and the company can achieve their
common goal

Union leader who cannot understand financial statement and analyze the company's
performance will not be able to negotiate with management on such labor-related
subjects as technological innovation, personnel transfers, and scrapping facilities
Bilal Iqbal MIan, CUI Sahiwal
The Kaizen Approach to Problem
Solving

Bilal Iqbal MIan, CUI Sahiwal

 When there is no
problem , there is no
potential for
improvements

KAIZEN starts with a problem,

more precisely the
recognition that a
problem exists

Bilal Iqbal MIan, CUI Sahiwal

 Seven Statistical
tools New Seven tools

• Pareto diagrams • Relations diagram

• Cause & Effect diagram • Affinity diagram

• Histograms • Tree diagram

• Control charts • Matrix diagram

• Scatter diagram • Matrix data-analysis diagram

• Graphs • PDPC (Process Decision Program

Chart)
• Check-sheets
• Arrow Diagram
Bilal Iqbal MIan, CUI Sahiwal
 Who What Where When Why How

Who does it? What to do? Where to do it? When to do it? Why does he do it? How to do it?

Where is it
Who is doing it? What is being done? When is it done? Why do it? How to do it?
done?

H
Who should be What should be Where should When should How should it be
Why do it there?
doing it? done? It be done? it be done? done?

+ 1
s
Can this method
Who else can do What else can be Where else can What other time
Why do it then? be used in other
it? done? it be done? can it be done?

W
areas?

do it? done?
5
Who else should What else should be
Where else
should it be
done?
What other time
should it be done?
Why do it that
way?
Is there any other
way to do it?

Are there any 3- Are there any

Who is doing 3- What 3-Mus are being Where are 3- Are there any time
Mus in the way of 3-MUs in the
Mus? done? Mus being done? 3-Mus ?
Bilal Iqbal MIan, CUI Sahiwal thinking? method?
 VELOCITY FOR COMPETITIVE
ADVANTAGE

Standardization
Process optimization
Elimination of waste
Evolution in people and technique
Durable training Bilal Iqbal MIan, CUI Sahiwal
 CUTTING CHANGE
OVER TIME
1. Form a team &
allocate
responsibilities

7. Set-up board for

visualization & 2. Measure
monitoring current
state
Seven
6. Analysis &
Steps
improvem 3. Analysis &
ent improvement

5. Set process
4. Apply first
with new
improvement
scenario

Bilal Iqbal MIan, CUI Sahiwal

Kaizen Costing Concept

Bilal Iqbal MIan, CUI Sahiwal

Kaizen Costing Concept
 Target Costing is a process,
 Ensuring that the products are
designed in such a way that the
company can sell them cheaply &
still make a fair profit.
 Kaizen costing focuses on the value
& profitability of the manufacturing
phase, both of new & existing
products.
 Kaizen costing activities should be a
part of a process of business
improvement continuously, with
improvements in quality, product
functionality and service jointly.
Bilal Iqbal MIan, CUI Sahiwal
Kaizen – Changing the
Corporate Culture
“A never-ending journey”

Bilal Iqbal MIan, CUI Sahiwal

 The customer : 1
The ultimate Judge of quality

The eye of the needle – 2

struggle to enter the market

Supplier relations 3

Changing Corporate culture : 4

Challenge to the west
“We call some societies primitive
because of their desire to remain in
the same state and in unchanging
standard of living – as their ancestors
created them at the beginning of
time”
Bilal Iqbal MIan, CUI Sahiwal
Anticipate Business Fluctuation

Establishing better Developing additional

criteria to measure supply sources that
optimum inventory can ensure faster
BUY levels delivery

(Outside
contactors)
Improving the quality
MAKE Improving how orders
are placed
of information provided
to suppliers
(part time
/contract
employee)

Establishing better Understanding the

physical distribution suppliers internal
system requirements better

Bilal Iqbal MIan, CUI Sahiwal

Companies applying Kaizen
Pharmaceutical Industry:
Food and Beverages Industry
 Boehringer Ingelheim
 Nestlé
 Sanofi Aventis
 Unilever
 Pfizer
Financial Services  Cadbury Schweppes
 Schwarz
 Societe Generale  Bongrain
 Merck
 Unilabs  National Australia Bank/BankofSadia
New Zealand  Tchibo
 Zydus Cadila
 N.M. Rothschild  Bacardi
 Europcar Lease Services  Pernod Ricard
 Commonwealth Bank  Brown Forman
 Adelaide Bank  Hochland
 St.George Bank

Healthcare Public Sector

 Independent Hospitals of Australia  Government of the United
 Hospital General de Santo Antonio Arab Emirates
 Calgary Laboratory Services  Government of Mauritius
 Mayo Clinic  Government of Kenya
 Danbury General Hospital  Government of India
Bilal Iqbal MIan, CUI Sahiwal
 Owensboro Medical Health System
7 Principles of Toyota
Production System (TPS)
1. Reduced Setup Times
2. Small-Lot Production
3. Employee Involvement and Empowerment
4. Quality at the Source
5. Equipment Maintenance
6. Pull Production
7. Supplier Involvement

Bilal Iqbal MIan, CUI Sahiwal

Statements on KAIZEN
“The starting point for improvement is to
recognise the need. This comes from
recognition of a problem. If no problem is
recognized, there is no recognition of the
need for improvement. Complacency is the
arch-enemy of Kaizen. Therefore, Kaizen
emphasizes problem-awareness and provides
clues for identifying problems.”

Masaki Imai

Bilal Iqbal MIan, CUI Sahiwal

Statements on KAIZEN
“Improve constantly and forever the system of
production and service. Improvement is not a
one time effort. Management is obligated to
continually look for ways to reduce waste and
improve quality.”
W.
Edwards Deming

Bilal Iqbal MIan, CUI Sahiwal

Statements on KAIZEN
Philosophy of quality control
“The Kaizen philosophy assures that
our way of life, or our home life,
deserves to be constantly
improved”

- Masaaki Imai

Bilal Iqbal MIan, CUI Sahiwal

 Conventional Japanese
Wisdom Revolutions
Higher quality leads to Higher quality leads to
higher costs lower costs

Larger lots lead to Smaller lots lead to

lower costs lower costs

Workers do not need to A thinking worker is a

be taken into account productive worker
Bilal Iqbal MIan, CUI Sahiwal
 KAIZEN
PHILOSOPHY

“Be it our working life, our social

life, or our home life, deserves to
be constantly improved”

Bilal Iqbal MIan, CUI Sahiwal

Good is never good enough, kaizen is a
never-ending journey to excellence.

Bilal Iqbal MIan, CUI Sahiwal

Questions & Comments

20/11/22 Bilal Iqbal MIan, CUI Sahiwal