Kaizen Management

Continuous improvement
Kaizen Management
What is Industry ?
Man-power
Machines
Materials
Methods
(4Ms, 1E)
Products
Services
What are evaluation
criteria for the output ?
1
KAIZEN is a corrective
action.
KAIZEN is a feedback.
KAIZEN is a Japanese word
A selection of better means or a
change of current method for
achieving an objective.
An accumulation of small
changes
Definitions of KAIZEN
The First Step is...
...To Understand Why
The Why is Simple
Work (Manufacturing/Service) processes
basically exist for one purpose and one
purpose only--
--To add value by transforming materials,
parts or components into
products/services that customers want and
are willing to pay for...
But...
When we add value we also add costs.
The challenge is to add value faster than we add
costs. If we add costs faster than we add value,
then
we may have to lower our price for our
products to compete in the marketplace, or
we end up losing money no matter what we
do.
So the first question to ask is--
Where are the costs?
The costs are hidden in our normal way of doing
business. For example,
Inefficiencies in how we do the work
The cost of expediting orders to get them to
the customer when theyre supposed to be
there
Producing the wrong thing or producing the
right thing at the wrong time
Or producing too many or not enough
Traditional Principle of Cost
Cost + Profit = Price
Cost + Profit = Price
Cost to Make
Profit
If we want to
make more profit
we increase price
Price to Customer
Price to Customer
Todays Principle of Cost Reduction
Price - Cost = Profit
Price - Cost = Profit
Price to Customer
Price to Customer
Cost to Make
Cost to Make
Profit
If we want to
make more profit
we reduce waste
in our process
Marketplace Pressure
Strategy
Vision
Vision without action is merely a
dream.
Action without vision is just
passing time.
Vision and action can change
the world.
Joel Barker
A clear vision, with a strategy for achieving it,
gives a context to all subordinate activities.
Have a Vision
Vision for Excellence
Our design and production systems will be among
the best in the world with:
Short Time to Market
Short Flow Times
Short Cycle Times
High Quality
Minimum Physical Resources
(Machines, Tooling, Floor Space)
Low Inventory.
DO
DO
PLAN
PLAN
CHECK
CHECK
ACT
ACT
Application of methods,
tools and actions gives
a result.
Check result
against strategy and
vision.
If necessary, revise
objectives against vision
Ensure plans for further
actions are consistent
with vision and
strategy.
If the vision isnt clear, and the strategy and objectives dont
support it, how can you Check your results? You have no
way of knowing if you are moving forward.
If the vision isnt clear, and the strategy and objectives dont
support it, how can you Check your results? You have no
way of knowing if you are moving forward.
Strategy
3 Core Competencies
1. Detailed customer/market knowledge and focus.
2. Large-scale quality/productivity campaign.
3. Lean, efficient design and manufacturing - falls under the
"must be very good" category.
We can secure our future if we do this well.
Lean, efficient design and manufacturing is key to winning markets.
It is key to great margins on the exports.
It is key to market success of the domestic consumer products.
We must get to lean fast - with velocity.
Why To Create a Lean Enterprise?
Business Realities
- Cost Pressures
Hold sales prices down
Cost of doing business is increasing
- Time Pressures
Increased demands for faster customer
response
Longer cycle times cost more
- Quality Pressures
Competitor six sigma challenge
Customer Expectation
Lean is...
A set of principles, concepts and techniques
designed for a relentless pursuit in the
elimination of waste. Producing an efficient just-
in-time production system, that will deliver to our
customers
exactly what they need,
when they need it,
in the quantity they need,
in sequence,
without defects,
and at the lowest possible cost.
A Lean System is Built on Principles
These principles will lead to:
Increased production volume
Faster customer response
Higher quality
More efficient space utilization
Lower costs
Takt-time
production paced
to the customers
rate of demand
One-piece flow
produces products
continuously without
interruption
Pull production
builds a product only
when the customer
has asked or
pulled for it
O
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JUST IN TIME
JIT means you get what you
need, where and when you
need it.
By reducing the overall flow
time of our products, we can
reduce many of the
associated costs of
production, such as
inventory holding costs, and
improve overall quality.
JIDOKA
Stop at every abnormality
We can achieve high quality
processes and products by:
stopping production anytime
a defect is detected,
designing reliable processes
and machinery to prevent
defects from occurring in the
first place, and separating
human work from machine
work so people perform work
that requires decision-making
and problem solving skills.
Doing these, we can eliminate
rework, scrap and lost
production time.
Elements of a Lean Production System
People using standard work to produce a product at a pace
that matches the rate of customer demand takt time.
A standard quantity of materials to keep everyone in the
process operating, and a signal, which can tell you to
build one more, will permit one-piece flow.
Machines available when you need them, and a signal to tell
you when theres a problem. Once a predictable pace of
production, one-piece flow and reliable machinery are in
place, a pull production environment can be achieved.
People
Standard
Work
Takt Time
Production
Materials
Standard WIP
Kanban
One-Piece
Flow
Machines
Operational
Availability
Andon
Pull
Production
Sort Simplify Sweep Standardize Self-Discipline
Leveled Production
Factory Kaizen
Observe Operator Methods & Create Standard Work
Equipment Kaizen
Factory Layout Kaizen
Pull
System Kaizen
Autonomation
Flow Production
5. Self-Discipline
1. Sort 2. Simplify 3. Sweep 4. Standardize
To Get Here
Start Here
G
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T
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W
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Lean Manufacturing Kaizen Sequence
10 Hints for Doing Successful Kaizen
1.
Excuses
No Excuses: Dont make excuses.... Dont accept excuses...
Explanations are often still excuses (If you have time to make up
excuses, you have time to think of improvement ideas!)
2.
Dont be a concrete or titanium head: Throw out traditional
concepts.... Think how a new method can work, not how it wont. (Switch
your mind yourself if you feel you are being a concrete head !)
3.
Do Kaizen by getting your hands dirty on the shop floor:
All information necessary for Kaizen is available on the shop floor..... You
can not understand a process until you observe and do it first hand.
Quick and crude is better than slow and elegant:
Dont seek perfection......50% Improvement Rate is fine, as long as it is
done on the spot.
4.
Produce actual improvement :
Observe actual gains.....Simulation and Ideas are NOT REAL until they
are implemented, observed and maintained. .
5.
vs.
vs.
VS.
6.
Implement Kaizen Newspaper items as committed: Dont
put off Kaizen until tomorrow.
7.
Do Kaizen by adopting ideas of workers: Put yourself in the
workers position.....The ideas of 10 people are better than the knowledge of one.
8.
Do Kaizen without spending lots of money: Many small
improvements add up to big results..... Implement quickly with less risk.
Dont overlook even the smallest waste (Muda):
Ask why? five times..... Many small improvements add up to big results...
Implement quickly with less risk.... Increased opportunity and
frequency to learn.
9.
10.
Document results on Target Progress Report: Document and
Report Results at Regular Report Outs. fill in the condition even if there has
been no change.
T
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MUDA
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MT WT F
Do Kaizen HONESTLY with the spirit of Yes, I will try!
Yoshio Oba
VS.
The Next Step Is
To Understand and Do It
The way of packing oranges
The way of packing oranges
in Japan
in Japan
It is difficult to open a net and put
oranges in the net at the same time.
Productivity: 1 net per min.
Orange Packing (1)
I need
help.
Cooperation increases a work efficiency.
Productivity: 5 nets per min.
Orange Packing (2)
Can you think of a better
method to pack oranges?
1
Productivity: 10 nets per min.
A selection of better means or a
change of current method for
achieving an objective.
Hold the glass with care.
Place the glass with care.
Treat customers from your heart.
Change the way of
holding the glass
Hold the bottom of the glass.
Support the glass with a little finger.
Touch the little finger to the table.
When a waitress served a glass of water,
she placed the glass strongly on the table.
2
When you hang up the telephone, put it
smoothly with an appreciation to the
customer.
Since the customer pays your salary,
hang up your telephone receiver politely.
You must teach a way of accomplishing
the job.
Do not give customers
uncomfortable feelings!
Telephone
- Productivity Improvement
- New product development
- TQC (Total Quality Control)
- Quality Control Circles
- Suggestion System
- Total Productive
maintenance
- 5 S Kaizen
- Quality Improvement
- Just-in-time
- Zero Defect (ZD)
- Small-group activities
- Cooperative Labor-
Management relationship
K A I Z E N
The Kaizen Umbrella
Hold the glass with care.
Place the glass with care.
Treat customers from your heart.
Change the way of
holding the glass
Hold the bottom of the glass.
Support the glass with a little finger.
Touch the little finger to the table.
When a waitress served a glass of water,
she placed the glass strongly on the table.
2
- Management for exceptions
- Abolition
- Discontinuance
- Exclusion
- Removal
- Simplification
- Centralization
- Synchronization
- Standardization
- Integration
- Combination
- Alternation
- Exchange
- Conversion
- Diversification
- Separation
KAIZEN Steps
4
Elimination
Remove this
sliding door
What is the use of the sliding
doors?
KAIZEN by Elimination
Before
After
Why are shoes box doors needed?
1
Before
After
KAIZEN by Elimination
No sleeves down-jacket is easy to work.
1
The number of fluorescent light
were reduced.
Reduce
A fluorescent light
bulb was removed.
KAIZEN by Reduction
Before
Are two bricks needed
to stop a car?
Parking Lot
After
Before
KAIZEN by Reduction
One brick is enough
to stop a car.
1
Zebra Zone
1
Before
After
KAIZEN by Reduction
Side lines of
the zebra zone
are removed.
1
Before After
KAIZEN by Reduction
A brush part of the toothbrush is
not necessarily long.
1
By watching the ribbon movement,
one can recognize that the air
conditioner is working.
Change
KAIZEN by Change
Before After
The hollow about the key hole
smoothes the key movement.
1
Before
After
KAIZEN by Change
To oil the pan, a small teapot is
more convenient than a ladle.
1
Before
After
KAIZEN by Change
Stairways at the railway station
should have signs of up and down.
1
At JR Kurume Station
Rush Hour
Before
After
KAIZEN by Change
The shape of the handing strap
fits the hand.
1
Hanging Straps
in trains
Hanging strap in
Hong Kong
subways
Contents
to Suggestion System
Objective: Read the gauge to
keep the liquid level constant.
Exercise (1)
Exercise (2)
Exercise (3)
Exercise (4)
Exercise (5)
Exercise (6)
Exercise (7)
Suggestion System
You suggest your ideas, and I will
examine them and implement some
of your ideas later.
Suggestion System
Concept
R
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a
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Implemented ideas must be submitted
KAIZEN System
K
A
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E
N

s
h
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t
Workers
responsibility
Workers responsibility
Management responsibility
Management
responsibility
Suggestion System
KAIZEN System
Difference (1)
Suggestion system
Propose improvement ideas for
any activity in the company.
KAIZEN system
Propose only improvement ideas
which will improve your own work.
Difference (2)
KAIZEN
Memo
1
AOTS Kaizen
KAIZEN
AOTS KAIZEN
1. Small change
2. Medium change
3. Big change
(KAIZEN)
(Small group
activities)
(Innovation)
--- By individual effort, a better
way of proceeding a job is
considered. (Idea creation)
--- By group effort, a better way
is proposed by following
predetermined steps (or rule).
--- By investments in new technology
or equipment, dramatic alterations
are achieved.
Different styles of change
2
THANK YOU