A Commonsense Approach to Low

Cost Management
Management

A Presentation to the Strathmore University

- 24th. September 2007
By
Dr. Manu Chandaria

GOALS & OBJECTIVES OF KAIZEN

The Goals of Kaizen is to reduce waste-MUDA in:
1. Transportation/movement
p
p
people/material
p
2. Inventory - Overstocking
3. Searching
4. Waiting man-machine-material
5. Non-prime generation Rework
6. Over- production

The ultimate objective is effective utilization

of available resources hence good:

Quality Delivery,
Quality,
Delivery Cost utilization &
Services

WHAT IS GEMBA KAIZEN?

= REAL

PLACE (YOUR WORK PLACE)

= KAI = CHANGE
= ZEN = GOOD (FOR THE BETTER)
CONTINUAL IMPROVEMENT
= KAIZEN =CONTINUAL

GEMBA KAIZEN THEREFORE MEANS:

CONTINUAL IMPROVEMENT AT THE WORK PLACE

WHERE CAN WE APPLY KAIZEN. & WHY?

Where?

What?

Offices

Layout
Procedures
Storage (Filing)

Processes

Production control
Stock control
Improve layout

Equipment

Maintenance
Flow Layout

St
Stores

St k control
Stock
t l

Homes

Storage
Layout

Why?

To Eliminate waste &

Improve

Quality,
Q
li D
Delivery,
li
C
Cost
utilization & Services

STEPS OF KAIZEN IMPLEMENTATION

RULE #1 - Go To The GEMBA
RULE#2 - OBSERVE By cleaning & inspection/ Taking
primary data
RULE#3 - Take Temporary Countermeasures
RULE#4 - Find
Fi d Out
O t Root
R tC
Cause
RULE#5 - Standardize & Sustain Gains
Remember!

1. Work as a Team
2. No boardroom Solutions!

(The reality is at the Gemba!)

THE BACKBONE OF IMPLEMENTATION OF

KAIZEN IS 5K (5S in Japanese)
What is 5K or 5S?
1. Kuchagua
2 Kupanga
2.
K
3. Kusafisha
4. Kudumisha
5. Kufundisha

- Seiri
- Seiton
S it
- Seiso
- Seiketsu
- Shitsuke

- sort out
-systematic
t
ti arrangementt
- Scrub clean
- State the rules
- Self-discipline (Follow rules)

After this exercise:

There should be a Place for Everything
Everything at its Place
te s should
s ould be easy to find
d
Items
And at the required quantities

AFTER 5K. Identify areas of waste & act:

Waste

Action

Transportation/
movement
people/material

Inventory Overstocking

Stock

Waiting
g manmachine-material

Do

Non-prime
generation rework

Over- production

Re-arrange to reduce distances in between

Re
Re-design
design layout to reduce distances in
between 5K
as per next process immediate needs
Stock
St k iin designated
d i
t d areas (if nott seen re-order
d
may occur) 5K
batch p
processes to ensure no waiting
g time
between man-machine-material
Improve machines (Basic maintenance by
user Autonomous Maintenance)
Zero-in on areas/process-stages causing
damage & improve
Produce as per customer (Pull Production)
immediate need

EXAMPLES OF APPLICATION
OF KAIZEN

Transaction in a 4-storey building (movements)

House A after
Kaizen

Process 1`

Process 3

Process 2
movem
ments

Process 5`

P
Process
1
Process 2
Process 4

move
ements

House A before
Kaizen

P
Process
3
Process 4

IN

OUT

Process 5

IN

OUT

You definitely leave House A after Kaizen less fatigued & happy!

Overstocking & Systematic Arrangement -5K

((Same as over p
production))
Before Kaizen

Damage to goods
Space restricted
Stock mixed-up
mixed up
More Capital held

After Kaizen

9 No damage
9 Space airy
9 Stock
S k organized
i d
9 Less capital held

Less inventory = lowered risks!

Un-balanced Processes/Movement
Before Kaizen

After Kaizen
Waiting!

B
10m

Process B faster than A

over processing.
Wide gap between two
the two operations more
movement

B
1m

9 Process B & A balanced

batch p
processes
9 Gap reduced less
movement

Faster & balanced delivery of final product/document

ACTUAL SCENARIO OF KAIZEN APPLICATION - STORAGE

WHO HAS SUCCEEDED IN THE USE OF KAIZEN?

.. And SAFAL GROUP of

companies have taken this direction
with success!

HOW DO WE SUCCEED IN IMPLEMENTATION

OF KAIZEN

R
Remember!
b !

Kaizen Is Continual Improvement

p
process

= Improve
= Sustain

BUT FOR US TO SUCCEED.

WE REQUIRE.