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Kaizen the continuous_improvement_way_preview

Kaizen is commonly known as a philosophy of continuous improvement. However, it is not so commonly known that a philosophy may be effective only within a formal and well-organized system. Kaizen approach refers to many LEAN concepts and techniques. All of them, when working together within the frames of a formal system, will bring the desired results of waste reduction and effective problem solving.

Kaizen involves everybody in the Company. Its philosophy is like a friendly spirit enveloping the entire organization. Kaizen assumes that the final result of all improvement is a sum of numerous, small steps resulting from strong involvement of the entire staff, especially of the operators and their leaders. Mature Kaizen attitude means to react when seeing waste, to open the mind and bring ideas of how to proceed rather than explaining why things cannot be done. If we continue to follow that philosophy, Kaizen will root well in the way we think, work and behave. It will become our second nature, which will lead to unconscious competence in driving improvements.

In this module of LEAN Academy we will learn on how to master this uneasy skill and have our organization develop efficiently the idea of Continuous Improvement!

Kaizen the continuous_improvement_way_preview

  1. 1. © Lean & Mean Consulting. All rights reserved. 2015© Lean & Mean Consulting. All rights reserved. 2016 08/ 16 Kaizen The Continuous Improvement Way / The Philosophy & Management System World-Class Standards & Best Practices of Operational Excellence
  2. 2. 2 Learning Objectives 1. Understand the key concepts of Kaizen 2. Manage Kaizen activities as a means to eliminate waste 3. Learn the essential tools and techniques for problem solving 4. Define the key steps in conducting a Kaizen event 5. Explain the role of management in Kaizen implementation 6. Understand the critical success factors in sustaining Kaizen activities
  3. 3. 3 Agenda 1. Introduction to Kaizen 2. Kaizen & Waste 3. Key Concepts of Kaizen 4. Kaizen Management & Practices 5. Kaizen Implementation 6. Problem Solving Tools & Technique 7. Developing “Kaizen Eyes” 8. Role of Management 9. Critical Success Factors
  4. 4. 1 The Continuous Improvement Way Module. 08
  5. 5. 5 What is Kaizen?  The Japanese word “Kaizen” (改 善) means change (KAI) to become good (ZEN). 改 善 Change Good Kai Zen  Kaizen means improvement. Improvements without spending much money, involving everyone from managers to employees, and using much common sense.  The aspect of Kaizen is that it is on-going and never-ending improvement process.
  6. 6. 6 Kaizen & Lean Kaizen is the foundation for all Lean improvements Stability Goals: Superior service, lowest cost, highest quality Just-In-Time Continuous flow Takt-Time Pull system Flexible workforce Jidoka Separate man & machine work Abnormality Identification Poka-yoke HEJUNKA STANDARIZED WORK KAIZEN Involvement
  7. 7. K A I Z E N  Quality Improvement  Just-In-Time  Kanban  Zero Defects  Small Group Activities  Problem Solving Groups  Productivity Improvement  New Product Development  Customer Focus  Quality Circles  Suggestion Ideas System  5S  TPM  AM  Continuous Flow  TQM & TQC
  8. 8. 8 Key Elements of Kaizen  Quality focus  Human effort  Total involvement  Willingness to change  Communication
  9. 9. 9 Kaizen Philosophy Implement good housekeeping and workplace organization. Identify and eliminate all activities that are waste. Implement standardization. Current State Future State Solve Problems Expose Problems “True North” Value Added Time = Lead Time Full of Waste, Variation, and Constraints
  10. 10. 10 Key Kaizen Approaches Good Housekeeping (“5S”) Waste (“Muda”) Elimination Standardization Kaizen
  11. 11. 11 Benefits of Kaizen  Empowers employees, enriches the work experience and brings out the best in every person  Promotes personal growth of employees and the company  Improves quality, safety, cost structures, delivery, environments, throughput and customer service/satisfaction  Provides guidance from employees, and serves as a barometer for leadership
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  13. 13. 13 What is Waste?  Consuming more resources than are necessary to produce the goods, or service, that the customer wants  Pure Waste: Actions that could be stopped without affecting the customer  Incidental Waste: Actions that need to be done based on how the current system operates but do not add value  Government Regulations/Policies, Audit requirements, Facility Layout, Technology
  14. 14. 14 What is Waste? Typically >90% of Total Lead Time is Non-Value Added!!! Value Add Non Value Add: Incidental Waste or just necessary Non Value Add: Pure Waste
  15. 15. 15 Value-Added Activities  Processing product or information  Customer wants it  Done right the first time Non-Value Add: Incidental Waste  No value created but required by current thinking  No value created but required by process limitations  No value created but required by current technology  No value created but required by government/business regulations Non-Value Add: Pure Waste  Consume resources but creates no value for the customer  Could be stopped and it would be invisible to the customer Value Defined
  16. 16. 16 Eight Types of Waste (MUDA) Motion Extra physical / mental motion that doesn’t add value Waste Waiting Employees waiting for another process or information Over production Producing more than what the customer needs Intellect Not using employees full intellectual contribution Over processing Adding excess value when the customer does not require it Defects Reprocessing, or correcting work Inventory Building and storing products the customer has not ordered Transportation Moving from one place to another
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  18. 18. 18 Key Kaizen Concepts
  19. 19. 19 Traditional Perception of Kaizen & Job Functions Top Management Middle Management Supervisors Operators Innovation Maintenance
  20. 20. 20 Modern Perception of Kaizen & Job Functions Top Management Middle Management Supervisors Operators Innovation Maintenance Kaizen
  21. 21. 21 PDCA / SDCA Cycles Standardize DoCheck ActPlan DoCheck Act Improvement Maintenance
  22. 22. 22 QCD: Quality First Quality First DeliveryCost
  23. 23. 23 1 2 3 1 2 3 Process at the top of the stream Process at the bottom of the stream The Next Process Is The Customer
  24. 24. 24 Process vs. Results  Kaizen fosters process-oriented thinking  Kaizen focuses on human efforts  A process-oriented approach should also be:  PDCA  SDCA  QCD  TQM  TPM
  25. 25. 25 Speak with Data  Kaizen is a problem solving process.  The problem must be understood and recognized.  Solving a problem without data is not a very scientific or objective approach.  Collecting, verifying and analyzing data for improvement is vital.
  26. 26. 4 The Continuous Improvement Way Module. 08
  27. 27. 27 Cross-functional Management Kaizen Management Maintenance Management Kaizen Maintenance Quality Cost Delivery Cross-functional management Line organization Policy deployment Routine (daily) management Small-group activities Individual suggestions Source: Kaizen by Masaaki Imai
  28. 28. 28 Suggestion System  One of the cornerstones of Small Group Activities  Suggestions are job-oriented and implemented by the employee  Process improvement  Equipment reliability  Safety, health and environment  A key measure of morale – number of suggestions per employee
  29. 29. 29 Fundamentals of Gemba House (1) Building self-discipline 1. Reward small steps 2. „Catch” people at the good work 3. Stay open to questions 4. Develop positive thinking culture 5. Allow the standards improvement process become widespread 6. Carry out evaluation 7. Encourage customer involvement 8. Implement the suggestion system 9. Create quality circles 10. Build a reward system 11. Clearly communicate your expectations
  30. 30. 30 Gemba Process Problem / Abnormality (Go to the Gemba) Check Gembutsu (Physical / Tangible Objects) Temporary Countermeasures (Symptoms) Find Root Cause (Why?) Standardize & Prevent Recurrence (SDCA)
  31. 31. 31 10 Rules of Kaizen (1) 1. Discard conventional rigid thinking about production. 2. Think of how to do it, not why it cannot be done. 3. Do not make excuses. Start by questioning current practices. 4. Do not seek perfection. Do it right away if for only 50% of target. 5. Correct mistakes at once.
  32. 32. 32 Kaizen Event – What is it?  Vehicle for driving quick hit value by implementing “do-now” solutions through employee involvement  Used when problem scope and boundaries are clearly understood, and results needed immediately  Facilitated by experienced Kaizen Event facilitators, to accelerate the identification, and elimination of process WASTE, and the sustainability of improved processes  Assembles cross-functional teams in a focused, 3-5 day dedicated event to attain sustained results Definition: Rapid, focused application of LEAN to reduce Waste to improve cost, quality, delivery, speed, flexibility and responsiveness to internal / external customer needs
  33. 33. 33 Kaizen Event Process 1. Set the Scene 2. Understand Current Process 3. Develop Future State Design 4. Implement Solutions 5. Report & Celebrate
  34. 34. 34 Problem Solving Techniques  Various methods exist:  A3  Six Sigma (DMAIC)  8D  Benchmarking  etc.  All techniques adopt the PDCA cycle
  35. 35. 35 Eight Steps of Problem Solving Select the Theme Plan the Schedule Grasp the Present Situation Establish the Target Analyze the Cause & Identify Corrective Action Implement Corrective Action Evaluate the Result Standardize & Follow-up PLAN ACT CHECK DO 1 2 3 4 5 6 7 8
  36. 36. 36 Problem Solving Tools  Seven basic tools:  Stratification  Check Sheet  Control chart (Run chart)  Pareto Chart  Cause & Effect Diagram  Histogram  Scatter Diagram
  37. 37. 37 1 2 4 3 5 6 7 A3 Storyboard Format
  38. 38. 8 The Continuous Improvement Way Module. 08
  39. 39. 39 Management’s Role in Kaizen Implementation  Communicate the need to change  Demonstrate personal commitment to process improvement  Educate and train staff in Kaizen  Plan and manage the improvement process
  40. 40. 40  Set up work process measurements  Review progress  Manage resistance to change  Recognize participation Management’s Role in Kaizen Implementation
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  42. 42. 42 Keys To Success  Management commitment  Focus on the goal - eliminate waste to reduce cost  Aligned focus from the top to the bottom  Allocate the proper resources  Gather baseline information and measure results. Go to the Gemba.  Get as many people involved as possible
  43. 43.  As a team – be open minded and supportive  Understand Kaizen concepts  Effectively use Kaizen methodologies and tools  Keep it simple  Becoming truly Lean is a journey and will not be made without some discomfort
  44. 44. 44© Lean & Mean Consulting. All rights reserved. 2016