Kaizen by Operational Excellence Consulting

2. © Operational Excellence Consulting. All rights reserved. 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 Copyrights of all the pictures used in this presentation are held by their respective owners.

3. © Operational Excellence Consulting. All rights reserved. 3 1 Introduction to Kaizen 2 Kaizen and Waste 3 Key Concepts of Kaizen 4 Kaizen Management 5 Kaizen Practices 6 Kaizen Implementation 7 Kaizen Story 8 Developing “Kaizen Eyes” 9 Role of Management 10 Critical Success Factors Outline NOTE: As this is a PARTIAL PREVIEW, only selected slides are shown. To download the complete presentation, please visit: http://www.oeconsulting.com.sg

5. © Operational Excellence Consulting. All rights reserved. 5 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.

7. © Operational Excellence Consulting. All rights reserved. 7 Kaizen & Lean Stability Heijunka Standardized Work Kaizen Just-In-Time • Continuous flow • Takt time • Pull system • Flexible workforce 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

8. © Operational Excellence Consulting. All rights reserved. 8 The Kaizen Umbrella K A I Z E N • Customer Orientation • QC Circles • Suggestion System • 5S • TPM • Automation • Robotics • TQC • Quality Improvement • Just-In-Time • Kanban • Zero Defects • Small Group Activities • Cooperative Labor- Management Relations • Productivity Improvement • New Product Development

9. © Operational Excellence Consulting. All rights reserved. 9 Kaizen is a Continuous Process Standardize Standardize StandardizeKaizen Kaizen Kaizen P DC A Kaizen (改善) = Continuous Improvement Plan DoCheck Act

10. © Operational Excellence Consulting. All rights reserved. 10 Kaizen versus Innovation Kaizen Innovation Un-dramatic Dramatic Low Cost High Cost Low Risk High Risk Human Effort Technology No Brainer More Thought

11. © Operational Excellence Consulting. All rights reserved. 11 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

12. © Operational Excellence Consulting. All rights reserved. 12 3 Criteria of Kaizen 1. Does the idea reduce waste, improve quality or increase safety? 3. Is it standardized? 2. Does it address the root cause? ideas ideas KAIZEN

14. © Operational Excellence Consulting. All rights reserved. 14 Methods 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

15. © Operational Excellence Consulting. All rights reserved. 15 Cost Reduction Principle Cost Plus Principle COST 1 SALES PRICE 1 PROFIT 1 Present COST 2 PROFIT 2 Future SALES PRICE 2 Cost Reduction Principle COST 1 SALES PRICE 1 PROFIT 1 Present COST 2 PROFIT 2 Future SALES PRICE 2 Higher profit is achieved by increasing sales price Higher profit is achieved by reducing cost (waste) while maintaining sales price

16. © Operational Excellence Consulting. All rights reserved. 16 Activities that do Not add value Workload that is not balanced Work that creates burden for the team members or processes Source: Toyota Motor Company Three MU’s: Muda, Mura, Muri

17. © Operational Excellence Consulting. All rights reserved. 17 Eight Types of Waste Over-production Producing more than what the customer needs Inventory Building and storing extra services/products the customer has not ordered Transportation Moving product from one place to another Rework Reprocessing, or correcting work Over-processing Adding excess value when the customer does not require it Motion Extra physical/mental motion that doesn’t add value Intellect Not using employees full intellectual contribution Waiting Employees waiting for another process or a machine/tool Waste

18. © Operational Excellence Consulting. All rights reserved. 18 Key Kaizen Concepts Kaizen & Management Follow SDCA / PDCA Cycles Speak with Data Next Process Is Customer Quality First Process Vs Results

19. © Operational Excellence Consulting. All rights reserved. 19 Kaizen & Management Maintenance • Follow current Standard Operating Procedures (SOP) • SDCA Improvement • Upgrade existing Standard Operating Procedures (SOP) • PDCA

23. © Operational Excellence Consulting. All rights reserved. 23 Kaizen Event Process 1. Set the Scene 2. Understand Current Process 3. Develop Future State Design 4. Implement Solutions 5. Report & Celebrate

24. © Operational Excellence Consulting. All rights reserved. 24 Kaizen Example – Office Desk An office desk before and after conducting 5S Sort and Set In Order. Clutter and unused items have been removed leaving only what is needed. Before After

26. © Operational Excellence Consulting. All rights reserved. 26 Kaizen Summary Sheet Project type: 5S Area: Sales & Marketing Office Team Leader: John Smith Before After Reasons project chosen: • Difficult to move around a cluttered office • Difficult to find information and supplies Tools used on project: • Cleaning equipment and tools • 5S principles Results: • Unwanted materials were discarded • Less waste – e.g. transportation, motion, waiting, etc. • Improved staff morale Next steps: • Conduct monthly 5S audits • 5S for other common areas

27. © Operational Excellence Consulting. All rights reserved. 27 Kaizen Story (a.k.a. QC Story) • The kaizen story is a standardized format to record kaizen activities conducted by small-group activities as quality circles • The kaizen story follows the Plan-Do-Check-Act (PDCA) cycle • PDCA provides a framework for a team to carry out improvement Plan DoCheck Act

28. © Operational Excellence Consulting. All rights reserved. 28 The 5W & 1H of Kaizen Who? What? Where? 1. Who does it? 2. Who is doing it? 3. Who should be doing it? 4. Who else can do it? 5. Who else should do it? 6. Who is doing 3-Mu’s? 1. What to do? 2. What is being done? 3. What should be done? 4. What else can be done? 5. What else should be done? 6. What 3-Mu’s are being done? 1. Where to do it? 2. Where is it done? 3. Where should it be done? 4. Where else can it be done? 5. Where else should it be done? 6. Where are 3-Mus’ being done? When? Why? How? 1. When to do it? 2. When is it done? 3. When should it be done? 4. What other time can it be done? 5. What other time should it be done? 6. Are there any time 3-Mu’s? 1. Why does he do it? 2. Why do it? 3. Why do it there? 4. When do it then? 5. Why do it that way? 6. Are there 3-Mu’s in the way of thinking? 1. How to do it? 2. How is it done? 3. How should it be done? 4. Can this method be used in other areas? 5. Is there any other way to do it? 6. Are there any 3-Mu’s in the method? Source: Masaaki Imai

29. © Operational Excellence Consulting. All rights reserved. 29 There Are Eight Standardized Steps in the Kaizen Story 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

30. © Operational Excellence Consulting. All rights reserved. 30 The Seven QC tools QC Tool Objective Stratification To separate data gathered from a variety of sources so that patterns can be seen. Check Sheet To collect and analyze data using a structured form. Control Chart To see if a process is stable. Pareto Diagram To pick up the important few problems from the trivial many. Cause and Effect Diagram To recognize the factors (causes) which are influencing the problem. Histogram To see the distribution pattern compared against standard values. Scatter Diagram To see the relationship between two sets of data.

31. © Operational Excellence Consulting. All rights reserved. 31 A Simple Kaizen Implementation Roadmap Create Awareness Build Capability Operations Management & Improvement Kaizen Training Kaizen Leadership Training Build Kaizen Activity Board Kaizen #1: 5S Kaizen #2: Waste Elimination Value Stream Mapping for Key Processes Train-the- Trainer Training Information Sessions for Whole Organization Senior Management Awareness Kaizen #3: Standardization Month 1 Kaizen Methods & Tools Training Month 3Month 2 Daily Management Meeting Kaizen Update in Monthly Newsletter & Intranet

32. © Operational Excellence Consulting. All rights reserved. 32 What Are “Kaizen Eyes”? • Kaizen is continual improvement for the better. • "Kaizen Eyes" see opportunities to improve. These eyes are a skill that can be developed through technique and practice. • The following slides are ways (techniques) to be practiced. They will help to widen the ability to recognize opportunity that may not be in full view.

33. © Operational Excellence Consulting. All rights reserved. 33 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

34. © Operational Excellence Consulting. All rights reserved. “A leader is best when people barely know he exists, when his work is done, his aim fulfilled, they will say: we did it ourselves.” Lao Tzu

36. © Operational Excellence Consulting. All rights reserved. 36 About Operational Excellence Consulting • Operational Excellence Consulting is a management training and consulting firm that takes a human-centered approach to helping organizations in the public and private sectors to work smarter and grow faster. • The firm’s mission is to create business value for organizations through innovative operational excellence management training and consulting solutions. • OEC takes a unique “beyond the tools” approach to enable clients develop internal capabilities and cultural transformation to achieve sustainable world-class excellence and competitive advantage. For more information, please visit www.oeconsulting.com.sg

Kaizen by Operational Excellence Consulting

Operational Excellence Consulting (Singapore)

Kaizen by Operational Excellence Consulting