Six Steps of Kaizen

© Operational Excellence Consulting. All rights reserved.
6 Steps
of KAIZEN
6 Basic Steps to Improvement

© Operational Excellence Consulting. All rights reserved. 4© Operational Excellence Consulting. All rights reserved. 4
Outline
1. Introduction to Kaizen
2. Step 1: Discover Improvement Potential
3. Step 2: Analyze the Current Methods
4. Step 3: Generate Original Ideas
5. Step 4: Develop an Implementation Plan
6. Step 5: Implement the Plan
7. Step 6: Evaluate the New Method
8. Critical success factors
Copyrights of all the images used in this presentation are held by their respective owners.
This document is a partial preview. Full document download can be found on Flevy:
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© Operational Excellence Consulting. All rights reserved. 7
What is Kaizen?
• 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.

Kaizen & Lean
StabilityStability
Heijunka Standardized Work KaizenHeijunka Standardized Work Kaizen
Just-In-Time
• Continuous flow
• Takt time
• Pull system
• Flexible workforce
Just-In-Time
• Continuous flow
• Takt time
• Pull system
• Flexible workforce
Jidoka
• Separate man &
machine work
• Abnormality
Identification
• Poka yoke
• Visual Control
Jidoka
• Separate man &
machine work
• Abnormality
Identification
• Poka yoke
• Visual Control
Goals:
highest quality,
lowest cost, shortest lead times
Involvement
Kaizen is the
foundation for
all Lean
improvements

Five Ways to Increase Production
How to
Increase
Productivity?
How to
Increase
Productivity?
Quantitative
Approach
More Workers
More Machines
Work Longer
Qualitative
Approach
Work Harder
Eliminate Waste &
Simplify
Current
1 Man
1 Machine 100 Units
1 Hour
Future
1 Man
1 Machine 120 Units
1 Hour
TPS
Goal

Value Defined
Value-Added Activities
An activity that changes the size, shape, fit, form or function of the
material or information
Customer wants it (meets customer requirements)
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

Types of Waste
• Extra raw materials, work-in-progress or
finished goods
• Building/storing extra products
• Poor inventory management technique –
FILO instead of FIFO
• Material with outdated shelf life
• Large number of equipment due to low
equipment utilization
• E-mails waiting to be read
• Files waiting to be worked on
• Too many office supplies
Excess Inventory

Types of Waste
• Searching for tools and materials
• Searching for information in shared drive
• Lack of or sub-optimal standard
operating procedures (SOPs)
• Reaching, bending or unnecessary
motion due to poor ergonomics and
workplace layout
• Unnecessary walking
• Handling paperwork
Unnecessary
Motion

Types of Waste
Intellect • Not engaging or listening to employees
in finding solutions
• Narrowly defined jobs and expectations
• Mismatched work functions with skill
sets
• Lack of information or best practice
sharing across the organizationThis document is a partial preview. Full document download can be found on Flevy:

Six Steps of Kaizen
1. Discover
Improvement
Potential
2. Analyze the
Current Methods
3. Generate
Original Ideas
4. Develop an
Implementation
Plan
5. Implement the
Plan
6. Evaluate the
New Method
KAIZEN

5 Why Example
Why? Causes
1
Why is there oil on the
floor?
Oil leaks from the cylinder rod
when activated.
2 Why did oil leak? The O-ring was cut.
3 Why was the O-ring cut? The rod was flawed.
4 Why was the rod flawed? Dirt in the oil abrades the rod.
5 Why did dirt get in the oil?
There are holes and gaps on the
upper plate of the tank.
1 3 4 52
A continuum of causes

Analytical Skills for Kaizen – Organize
Example of a machine and how it can be organized into six convenient
categories that are mutually exclusive and collectively exhaustive (MECE).
Equipment Uptime
Problem
Availability
Breakdowns
Changeover Time
Performance
Cycle Time Losses
Minor Stops
Quality
Scrap or Rework
Yield Losses
Equipment Loss Categories

Opportunity Awareness
• Opportunity or problem awareness is another key
ingredient for Step 1
• Analytical skills are part of the mental mindset needed
for kaizen
• There is also a need for an open mind and an ability to
be aware of opportunities
• The common response “No problem!” is the problemThis document is a partial preview. Full document download can be found on Flevy:

Basic Methods for Uncovering Waste & Identifying
Improvement Opportunities
• There are five basic methods for uncovering waste:
1. Compare Performance to Standards
2. Production Analysis Board
3. Using the Back Door
4. Five S
5. The Eight Deadly Wastes

Compare Performance to Standards
Accidents
2013 2014 2015 2016
0
1
2
3
4
5
Accidents/Year
Better
’13/9 ’14/3 ’14/9 ’15/3 ’15/9 ’16/3 ’16/9
80
85
90
95
Percent, %
Better
Delivery Performance
Target = 97%
Actual = 94%
’13/9 ’14/3 ’14/9 ’15/3 ’15/9 ’16/3 ’16/9
200
400
600
800
1000
1200
PPM
Better
Defect Rate
Target = 400 ppm
Actual = 530 ppm
Target = 0
Actual = 2
Staff Suggestions
2013 2014 2015 2016
0
20
40
60
80
100
Suggestions/Year
Better
Target = 80
Actual = 65

Production Analysis Board
Time Period Plan Actual Difference Reason for Difference
8:00-9:00 26 21 -5
• Material late to line – 5 min
• One person late
9:15-10:00 31 27 -4
• Tester delay error five times
• Broken tool
10:00-11:00 24 22 -2
• Station 3 part jams in chute
• Station 5 defects
11:15-12:00 31 27 -4 • Material late to line – 5 mins
1:00-2:00 21 21 0 • No delays
2:00-3:00 31 25 -6 • Station 3 part jams in chute
3:15-4:00 26 27 +1 • No delays
4:00-5:00 26 15 -9
• Tester error delay – maintenance
recalibrated machine
Totals 216 185 -31

Five Key Points for Discovering Waste Through
the Back Door
1. Look at the three real
things:
The factory
The facts
Work-in-process
2. Ask “What?”
Ask what the operation is about
3. Ask “Why?”
Ask why the operation is
necessary
4. Everything that is not work
is waste
Once you have found out what
the operation’s essential
function is, you can properly
identify as waste everything in
the operation that does not
directly execute that function
5. Ask “Why?” at least five
times to find root causes
Ask why at least five times
concerning each wasteful part of
the operation. This will lead you
to the real waste.
Draft an improvement plan. Ask “How?”

5S Principles
Sort
Set In OrderShine
Standardize
Sustain

Example of 5S for Office Desk
An office desk before and after conducting 5S Sort, Set In Order
and Shine. Clutter and unused items have been removed leaving
only what is needed.
Before After

Causes of Overproduction
• Large-lot production
• Anticipatory production (producing product in advance of
demand)
• Long changeover times
• Building enough stock to replace defective parts
produced
• Overstaffing, or too much equipment
• Machines that turn out parts too quickly

How to Eliminate Inventory
• U-shaped manufacturing cells, layout of equipment by
process instead of operation
• Production leveling
• Regulating the flow of production
• Pull production using kanban
• Quick changeover operationsThis document is a partial preview. Full document download can be found on Flevy:

Causes of Defects
• Emphasis on downstream inspection
• No standards for inspection work
• Omission of standard operations
• Material handling and transportation

How to Eliminate Over-Processing Waste
• More appropriate process design
• Review of operations
• Improvement of jigs using automation
• Thorough standardization
• Promotion of value analysis and value engineering
techniques

Causes of Waiting Time
• Obstruction of flow
• Poor equipment layout
• Trouble at the upstream process
• Capacity imbalances
• Large-lot production

How to Eliminate Intellectual Waste
• Engage employees in finding solutions through kaizen or
small group activities, e.g. problem solving
• Share information or best practices, using tools such as
activity board, visual controls and daily management
• Improve matching of work functions with the right skill
sets

Introduction to Step 2
• In Step 2, we present some of the basic techniques
available for studying current methods of various work-
related processes
• All of these techniques have their roots in industrial
engineering, operations research, or similar fields
• There is no such thing as one perfect analysis
technique. Each method has its strengths and
weaknesses.
• We suggest you practice using each of the methods for
skill development. You can start with the basic methods
and then work up to some more advanced topics.

Work Analysis
• Work analysis is simply the practice of writing down the
main work components of a job and then putting the
items one by one through a deliberative thought process
for improvement
• As shown on the next slide, the process is simply to
breakdown the work components from the general level
to the minute details as follow:
(1) Job Level – (2) Task Level – (3) Major Steps – (4) Work
Elements – (5) Motion Detail
These five basic levels are what we collectively call Work Units
Analysis

Training-Within-
Industry (TWI) Job
Methods Analysis
Basic Analysis Methods:

Details of the Job Methods Process
JOB METHODS
HOW TO IMPROVE
A practical plan to help you produce greater
quantities of quality products in less time, by
making the best use of Manpower,
Machines, and Materials now available.
STEP 1 – BREAK DOWN THE JOB
1. List all details of the job exactly as done by
the current method
2. Be sure details include everything:
− Material handling
− Machine work
− Hand work
STEP 2 – QUESTION EVERY DETAIL
1. Use these types of questions:
Why is it necessary?
What is its purpose?
Where should it be done?
When should it be done?
Who is best qualified to do it?
How is the ‘best way’ to do it?
2. Question the following at the same time:
Materials, Machines, Equipment, Tools,
Produce Design, Workplace Layout,
Movement, Safety, Housekeeping
STEP 3 – DEVELOP THE NEW METHOD
1. ELIMINATE unnecessary details
2. COMBINE details when practical
3. REARRANGE for better sequence
4. SIMPLIFY all necessary details
To make the job easier and safer to do:
− Put materials, tools, and equipment into
the best position and within convenient
reach for the operator
− Use gravity feed hoppers or drop delivery
chutes whenever possible
− Make effective use of both hands
− Use jigs and fixtures instead of hands
5. Work out your ideas WITH OTHERS
6. WRITE UP the proposed new method
STEP 4 – APPLY THE METHOD
1. SELL your proposal to the boss
2. SELL the new method to the operators
3. Get FINAL APPROVAL of all concerned on
Safety, Quality, Quantity, Cost, etc.
4. PUT the new method TO WORK. Use it
until a better way is developed.
5. Give CREDIT where credit is due

The 5W & 1H
1. Why is it necessary?
2. What is its purpose?
3. Where should it be done?
4. When should it be done?
5. Who is best qualified to do it?
6. How is “the best way” to do it?
Note the order of 5Ws & 1H
Step 2: Question Every Detail

Standardized Work
Basic Analysis Methods:

Takt Time
Amount of production time per shift
Number of products needed by the customer per shift
Amount of time to produce one product
7.5 hrs/shift x 60 minutes/hr x 60 seconds/min.
450 products needed by customer/shift
27,000 seconds/shift
450 products
60 seconds Takt Time
Example :
=
=
=
=
=

Standard Work Chart – Procedure
1. Create a drawing of the operations in the cell and enter
their sequence and description.
2. Enter the quality checkpoints.
3. Enter the safety checkpoints.
4. Enter the WIP.
5. Enter the Takt time and the net cycle time.
6. Enter the amount of standard WIP.
7. Enter the breakdown numbers to indicate different
operations in the cell and total number of operators.

Improvement Goals for the 6 Big Losses
Type of Loss Goal Explanation
1. Breakdowns 0 Should be zero for all equipment
2. Setups and adjustments minimize
As short as possible; less than 10 mins with
zero adjustments
3. Reduced speed 0
Should match or – with improvements –
exceed equipment specifications
4. Minor stoppages 0 Should be zero for all equipment
5. Defects and rework 0
Extent may vary, but goal should be expressed
in parts per million (ppm)
6. Startup loss minimize
Source: TPM for Every Operator, Productivity Press Development Team

Equipment Cycle Time
• Caused by reduced operating speed – equipment
cannot be operated at original or theoretical speed
• At higher operating speeds, quality defects and minor
stoppages frequently occur, resulting in operation at a
lower moderate speed
• Measure in terms of the ratio of actual operating speed
to theoretical speed
Performance

Startup or Yield Losses
• Caused by unused or wasted raw materials
• Exemplified by quantity of rejects, scraps, chips, etc.
• Yield losses are divided into two groups
Raw material losses resulting from product designs,
manufacturing methods and equipment restrictions
Adjustment losses resulting from quality defects associated with
commencement of work, changeover, etc. Includes setup and
adjustment losses plus yield losses, in terms of both time and
material losses
Quality

• Creates an end-to-end view of the production system
• Demonstrates interaction between material/work and information flow
• Provides a common visual language for understanding a complex system
Supplier Management
Control
Customer
Work & Information Flow
Information flow
A Value Stream Map Provides an Overview of
the End-to-end Production Process

D
D
D
E
AAA
AA
B
B
A
A
A
A
AA
F
FGG
OFFICE
C
2
1
3
5
7
9
11
4
6
810
12
13
14
15
16
17
18
19 20
21
2223
24
25
26
27
28
29
30
31
32
36
33 34
3537
38
39
40
41
42
43
44
45
46
47
49
51
48
50
X Transport using truck or man
Inventory or buffer stocks
Value adding processX
X
Machining (10)
Drilling (20) Welding (28) Assembly (34)
Packaging(44)
Current State Layout

Value Stream Mapping: Before & After
Metric Current State
Projected
Future State
% Improvement
Lead Time
Cycle Time
% Activity
Rolled First Pass
Yield
Labor Effort
Add other relevant
metrics

Value-added Flow Chart: Steps 1 – 5
1. List all of the steps in a process from beginning to end.
2. Create a diagram with a box for every step, in sequence.
3. Calculate the time currently required to complete each step of the
process, and add that time to the box (See Figure 1).
4. Add the time in each box to yield the Total Cycle Time.
5. Identify those steps that do not add value to the process. Non
value-added operations include: inspection, test, rework, set-up,
inventory buffers, product movement other than customer delivery
- any activity that does not improve the form, fit, or function of the
product on the first pass through the process.

Value-added Flow Chart: Steps 10 – 14
10. Identify the target process configuration using
benchmarking and best-in-class analysis.
11. Diagram the target process and determine the Total Target
Cycle Time - see Figure 4.
12. Analyze the Non-Value-Added steps to identify actions to
reduce or eliminate these operations.
13. Analyze the Value-Added steps to identify improvement
opportunities and implement actions to reduce the cycle
time.
14. Diagram the improved process, compare to the target
process, and identify gaps for further improvement actions
on an ongoing basis until the target is achieved.

Flow Analysis Chart
• The Flow Process Chart focuses on the flow of materials
along the production process
• It helps you identify waste in your production flow
process
• To develop the chart, simply trace the flow of the
materials along the process flow, and check the symbol
for each activity or event (see chart on next slide)
• Summarize the analysis as shown in the chart and
identify which waste to eliminate

Six Steps of Kaizen
1. Discover
Improvement
Potential
2. Analyze the
Current Methods
3. Generate
Original Ideas
4. Develop an
Implementation
Plan
5. Implement the
Plan
6. Evaluate the
New Method
KAIZEN

General Advice Regarding Creativity & Teams
• Separate idea generation from judgment
• Generate as many ideas as possible
• Think from different angles
• Combine ideas with others
• Review previous analysis
• Synthesize ideas

Brainstorming
• Purpose
To creatively generate new ideas in a short period of time.
• When to use
When a broad range of options is desired.
When creative, original ideas are desired.
When participation of the entire group is desired.
When problem is “blur” and many people are involved.
For binding teams together (creative synergy).

Listing Faults
• Whenever solutions or ideas for
solutions are needed, it is because
a problem exists. If a problem
exists, it implies there is a fault in
the system.
• In seeking new ideas,
1st step: Locate and determine the fault
2nd step: Look for ways to rectify the
fault
• Use brainstorming technique to stir
up ideas.

Listing
Characteristics
Methods for Developing Innovative
Ideas:

The Gordon Method
• This method can elicit creative ideas and extract from
the imagination radically new ways of considering a
product by conceptualizing a product’s function in very
abstract terms
• For example, when we consider developing a new
toaster, it is difficult to conceive of radically new ideas by
merely looking at the toaster
• However, when we concentrate solely on the function of
the toaster, namely, “to toast”, our mental image is no
longer restricted by the notion of a conventional “toaster”
or by the usual property of being “electric”.
What other ways are there for toasting bread?

Osborn’s Checklist 2
5. How about enlarging, lengthening, thickening or
strengthening it?
6. How about miniaturizing, lowering, lightening,
shortening, compressing, sectioning or even
abandoning it?
7. How about redesigning forms, layout, order, elements
or plans?
8. How about reversing the order, functions, front and
back, top and bottom, or right and left?
9. How about combining units, aims, or ways of
thinking?

5W1H & ECRS
• The answers to Why? and What? lead us to eliminate
unnecessary details.
• We eliminate details to avoid unnecessary use of
Manpower, Machines, and Materials.
• Have group check or cross off each detail on the Present
Method Breakdown as it is eliminated.
Step 3: Develop The New Method
Eliminate unnecessary details

5W1H & ECRS
• We ‘simplify’ to make the necessary details safer and
easier to do.
• The answers to How? give us leads for simplifying
necessary details.
Step 3: Develop The New Method
Simplify all necessary details

Brainwriting
• Procedure
Define the problem.
Each person should brainstorm three ideas in two minutes on a
piece of paper.
Then have them pass the sheet of paper to the person on the left.
Have the next person to build upon or add to the existing ideas by
writing/drawing their own ideas underneath the existing ideas.
Allow 3 minutes.
Repeat the process around the table with the next person
building on existing ideas or add on new ideas, until the paper
comes back to the originator.
Share all the ideas on the table and pick out a couple of
outstanding ones.

Nyaka Method
• Procedure
Team to build a customer journey or a work process that they
want to identify the problems or issues.
Facilitator asks the group to define as many things that are wrong
with the design of the process / service / experience and write
them on the left space of a line.
Facilitator asks the group to define solutions for as many of the
problems defined as possible and write them on the right space
of the line.
Create a hierarchy of problems and hierarchy of solutions for
each problem.
Based on the discussion, the group can decide which solutions to
further develop based on certain criteria, and make prototypes.

SCAMPER
Ideas:

What If?
Ideas:

What If?
What If Questions:
1. Scarcity / Abundance:
What if a car can run without petrol?
What if you have unlimited budget to change this website?
2. Extreme Simplicity:
What if the army fight with no soldiers?
What if you can apply for a bank loan in one step?
3. Opposite:
What if your mobile phone runs to you instead of you running to your mobile
phone?
What if an employee pays the company to work instead of the company paying
the employee?

Rules for Motion Economy 2
5. Momentum should be employed to help the worker, but
should be reduced to a minimum whenever it has to be
overcome by muscular effort.
6. Continuous curvilinear movements are to be preferred
to straight line motions involving sudden and sharp
changes in direction.
7. “Ballistic” (i.e., free swinging) movements are faster,
easier, and more accurate than restricted or controlled
movements.
Use of the Human Body

5. Materials and tools should be arranged to permit the
best sequence of motions.
6. “Drop deliveries” or ejectors should be used whenever
possible so that the operator does not have to use his
hands to dispose of the finished work.
7. Provision should be made for adequate lighting, and a
chair of the type and height to permit good posture
should be provided. The height of the workplace and
seats should be arranged to allow alternate standing
and sitting.
Arrangement of the Workplace

4. Handles such as those in cranks and large
screwdrivers should be so designed that as much of
the surface of the hand as possible can come into
contact with the handle. This is especially necessary
when considerable force has to be used on the handle.
5. Levers, crossbars, and hand-wheels should be so
placed that the operator can use them with the least
change in body position and the greatest “mechanical
advantage”.
Design of Tools & Equipment

Step 4:
Develop an Implementation
Plan
5

Key Points in Planning
• Reconcile your end goal with your means of achieving
that goal
The ideas proposed in Kaizen must outweigh the costs or
difficulty of attaining that goal
In some cases, careful cost-benefit analysis must be conducted
Follow rules and guidelines in your company for obtaining
approval and justifying improvement suggestions

Example of Implementation Plan with Status Update
Kaizen Focus Point Action Item Responsible Due Status
1. Dirt and contamination Daily 5S & PM tasks Tony (T/L) 11/2 Conducting daily.
2. Grinding wheel setup check Grinding wheel setup check Tony (T/L) 11/4 In place and evaluating.
3. Manual offset function Check offset function Tony (T/L) 11/4 Checked out okay.
4. Spindle bearing loose Spindle bearing check Ed (Maint) 11/5 Loose bearing cap. Tightened.
5. Clamp & locator damage Clamp & locator check Ed (Maint) 11/5 Nothing abnormal.
6. Grinding wheel balance Grinding wheel check Tony (T/L) 11/5 Nothing abnormal.
7. Incoming part dimensions Measure part dimensions Janet (QC) 11/9 Completed. Within spec.
8. Poor material hardness Measure hardness Janet (QC) 11/9 Completed. Within spec.
9. Abnormal surface finish check Surface finish check Janet (QC) 11/9 Completed. Within spec.
10. Abnormal grinding conditions Grinding conditions check Mary (Eng) 11/13 Completed. Nothing abnormal.
ILLUSTRATIVE

Implement the Plan
• A good strategy is of no use if it is not executed properly.
Plans on paper have to be translated into specific and
effective action items on the shop floor that result in
change for the better.
• There are three key points for successful implementation
of the plan
1. Effective communication
2. Training and instruction
3. A positive and energetic attitude

Implement the Plan – Positive Attitude
• A positive and energetic attitude is required for
implementation
Leadership and attitude play a large role in helping to ensure
positive results in implementation
In Kaizen, the manager or change leader who is responsible for
helping to make sure that everyone is aware of the upcoming
change and is clear why it is occurring
A positive and energetic attitude is always an effective ingredient
in the change process
Conversely, a negative and disingenuous attitude will stifle most
teams and progress

Evaluate the New Method
• The final aspect of verifying results must be conducted
or the entire process of Kaizen is at risk
• One of the most common failures in Kaizen activities is
the failure to establish that tangible gains have actually
been made
• The Kaizen team needs to establish beyond doubt the
cause and effect are well understood, and measureable
results are obtained from certain actions with a high
degree of confidence
• In Kaizen, activity is often mistaken for accomplishment.
However, the final and ultimate test of Kaizen is in the
results.

Effect Confirmation
• Use measurements (e.g. data analysis or SPC) to
identify the real improvements based on the standard.
• Compare Pareto charts of “before” and “after”
improvement (see example on next slide).
• Are results as expected? If not, re-loop back to earlier
steps for further improvement.
• Measure related processes to ensure they are not
adversely affected.

Follow Up
• Standardize the improvement actions
• Update the QMS / SOP / Standard Work
• Share success story. Determine best practices and other
learning points.
• If the Kaizen was unsuccessful, address the causes to
prevent them from recurring. Loop back to previous
stages to correct and repeat actions.
• Document the success story

Kaizen Example – Machine Cleaning & Fault
Tagging
During initial cleaning
Afterwards –
Everyday process
Tag is removed only after the
repair is made

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

Copyrights of all the pictures used in this presentation are held by their respective owners.

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