1. Kaizen
The Key to Japan‟s Competitive Success
Presented By:
Dr. Yasser Mostafa
QA Manager – Al Yasra Food Co.

2. Speaker Profile:
Dr. Yasser Mostafa
◦ Certified Quality Manager – ASQ
◦ LA ISO 9001, 14001 & 22000
◦ Member in Kaizen Institute – Egypt
◦ B. Sc. in Veterinary Medicine from Cairo University.
◦ Over more than 12 years, with accumulated experience in
quality field in Egypt, Saudi Arabia and Kuwait.
◦ Currently he is Quality Assurance Manager in Al Yasra Food
Co.
◦ Member International Register of Certificated Auditors (IRCA)
◦ Member in American Society For Quality (ASQ)
◦ Member in Egyptian Society For Quality (ESQ)

3. Contents:
1. KAIZEN, The Concept
2. Improvement East and West
3. KAIZEN by Total Quality Control
4. KAIZEN, The Practice
5. KAIZEN Management
6. The KAIZEN Approach to Problem Solving
7. Changing the Corporate Culture

4. What is KAIZEN?
Kaizen translated literally means 'Change for Good'.
 Kai – to take apart; to change Zen – „good‟
 Kaizen: to take apart and change for good

5. Masaaki Imai-
known as the developer of
Kaizen
Kaizen originated in Japan in 1950
First, it was been introduced and
applied by Imai in 1986 to improve
efficiency, productivity and
competitiveness in Toyota
“If you learn only one word of
Japanese, make it KAIZEN.”
Masaaki Imai

6. Introduction
 It is a planned and controlled change to achieve
the next step in continual improvement
 It moves you from the existing Current State toward
the defined Future State you have established as
your goal.
 Kaizen is a process of continuous incremental
improvement.
 The “kaizen blitz” is a five-day continuous
improvement activity focused on a very specific
process.
 True Kaizens are typically done as a focused „blitz‟:
A point in time team effort rather than a
gradual metamorphosis over time.

7. Why Kaizen Events?
Future
Current Kaizen State
State
(Lean)
Kaizen drives the improvements which lead to a leaner
business operating system

8. Two elements of KAIZEN
There are two elements that construct
KAIZEN:
Improvement/Change for the better
Ongoing/Continuity/Maintenance
Lacking one of those elements would not be
considered KAIZEN.
The philosophy of Kaizen has kindled considerable
interest among researchers because it increases
productivity of the company and helps to produce
high-quality products with minimum efforts.

9. Kaizen Philosophy
 Kaizen, also known as continuous improvement,
is a long-term approach to work that
systematically seeks to achieve small, incremental
changes in processes in order to improve
efficiency and quality.
 Kaizen can be applied to any kind of work, but it is
perhaps best known for being used in lean
manufacturing and lean programming.
 If a work environment practices kaizen,
continuous improvement is the responsibility of
every worker, not just a selected few.

10. Kaizen Philosophy
 Kaizen can be roughly translated from
Japanese to mean "good change."
 The philosophy behind kaizen is often
credited to Dr. W. Edwards Deming.
 Dr. Deming was invited by Japanese
industrial leaders and engineers to help
rebuild Japan after World War II.
 He was honored for his contributions by
Emperor Hirohito and the Japanese Union
of Scientists and Engineers.

11. What is Kaizen Events?
Evaluate
Implement
Plan and Design
Assess/Reassess
Kaizen activities that address issues over a period of one week had
become the industry norm and they had been named as „Kaizen
events‟. These small models are used to understand problems and
issues in the business processes, arrive at solutions, and apply
them to improve the processes and eliminate wastes.

12. Five Main Areas of Kaizen
 Teamwork (Most Important)
 Personal discipline
 Improved morale
 Quality circles
 Suggestions for improvement

13. Who are Stakeholders – Who
benefit from Kaizen?
The principal stakeholders of
Kaizen philosophy are:
 Employees of the organization.
 Top level management
 last level worker in the
company.
 External stakeholders like
vendors, customers, and
 Shareholders.

14. The Kaizen Umbrella
 Customer orientation  Kamban
 TQC (total quality  Quality improvement
control)
 Just-in-time
 Robotics
 Zero defects
 QC circles
 Small-group activities
 Suggestion system
 Automation  Cooperative labor-
 Discipline in the management relations
workplace  Productivity
 TPM (Total Productive improvement
Maintenance)  New-product
development

15. Benefits of KAIZEN
 Reduces waste- like inventory waste, time waste,
workers motion.
 Improves space utilization, product quality
 Results in higher employee morale and job satisfaction,
lower turn-over.
 Widely acceptable-can be used in both manufacturing
and non-manufacturing environments, for processes as
well as people.
 Highly effective and success-oriented-Kaizen events will
generate quick results, measurable results, establish the
baseline and measure the change.
 A learning experience-every member of a Kaizen Team
will walk away from the event learning something new

16. Pitfalls in KAIZEN
 Resistance to change
 Lack of proper procedure to
implement
 Too much suggestion may lead to
confusion and time wastage

17. Easy Kaizen Flow
1 START 2 3
Establish existence Develop problem
Identify problem
of problem statement
END
7 4
Document/Standardize
Formulate solution(s)
improvements
6 5
Evaluate results Implement solution(s)

18. Kaizen, The Concept

19. Jobs Function Perceptions
Japanese Western perceptions
perceptions
Top management
Middle management
Supervisors
Workers

20. Middle
Top
Management & Supervisors Workers
Management
Staff
Determine to introduce Use Kaizen in functional
Kaizen as a corporate Deploy and implement rules Engage in Kaizen
strategy Kaizen goals as through the suggestion
directed by top system and small
management through Formulate plans for group activities
policy deployment and Kaizen and provide
Provide support and cross functional guidance for workers
direction for Kaizen by management
allocating resources Practice discipline in
Improve the workshop
Use Kaizen in functional communication with
Establish policy for capabilities workers and sustain
Kaizen and cross high morale
functional goals
Establish, maintain, and
upgrade standard Engage in continuous
Support small group self-development to
activities (such as become better problem
Realize Kaizen goals quality circles) and the solvers
through policy Make employees
Kaizen-concious individual suggestion
deployment and audits system
through intensive
training programs
Introduce discipline in
Build system, the workshop
procedures, and Help employees Enhance skills and job
structures conducive to develop skills and tools performance expertise
Kaizen for problem solving Provide Kaizen with cross education
suggestions
// YIS//062709//

21. Deming Wheel
Design
Research Production
Plan
Act PDCA Do
Sales
Check

22. Continuous Improvement
KAIZEN
INNOVAT
ION
Breakthrough
Science Technology Design Production Market
Innovation KAIZEN

23. KAIZEN 1 INNOVATION
Long term Short term
Effect
Un-dramatic Dramatic
Small steps Pace Big steps
Time Intermittent &
Continuous & incremental
frame non incremental
Gradual & consistent Change Abrupt & volatile
Everybody Involvement “Champion”
Collectivism, Rugged individualism, individual
Approach ideas & efforts
group efforts, systems approach

24. KAIZEN 2 INNOVATION
Maintenance & Scrap
Mode
Improvement & Rebuild
Conventional know-how & state of Technological breakthroughs,
the art
Spark new inventions, new theories
Little investment Practical Large investment
Great effort to maintain Requirements Little effort to maintain
Effort
People Technology
orientation
Process & efforts for Evaluation
Results for profits
better results criteria
Economic
Slow growth economy Fast growth economy
condition

25. INNOVATION KAIZEN
Creativity Adaptability
Individualism Teamwork (system approach)
Specialist oriented Generalist-oriented
Attention to great leaps Attention to details
Technology oriented People oriented
Information: closed, proprietary Information: open, shared
Functional (specialist) orientation Cross functional orientation
Seek new technology Build on existing technology
Line + staff Cross functional organization
Limited feedback Comprehensive feedback

26. Upcoming Japanese product perceptions
Technology Level Preferred Process Product
Innovative product
High Technology oriented
with Kaizen
Technology innovation
orientation
Technology oriented
KAIZEN
People oriented Kaizen oriented
Low Technology
KAIZEN product

27. Kaizen by Total Quality Control
(TQC)
“The Kaizen philosophy assures that our way of life, or our home life,
deserves to be constantly improved”
- Masaaki Imai

28. 1 Quality control deals with the Quality of people
2 Speaks with data
3 Quality first, not Profit first
4 Manage the previous process ( Upstream)
5 The next process is the customer
6 Customer oriented TQC, not manufacturer oriented TQC
7 TQC starts with training and ends with training
8 Cross Functional Management to Facilitate Kaizen
9 Follow PDCA cycles
10 Standardize the results

29. 1. Quality assurance
TQC 2. Cost reduction
3. Meeting production quota
4. Meeting delivery schedule
5. Safety
6. New-product development
7. Productivity improvement
8. Supplier management
TQC

30. Manpower
Technique
Method
Time
Muda (Waste) Facilities
Muri (Strain) Jigs and tools
Mura (Discrepancy) Materials
Production volume
Inventory
Place
Way of thinking

31. ACT
PLAN
Standardiz Definitions
ation of problem
CHECK Confirmation Analysis of
of results problem
Identificati
Implement
on of
ation
causes
Planning
DO
counter-
measures

32. Kaizen The Practice

33. Maintain a
questioning &
Use tools &
Achieve open-minded
facilitates to
maximum Maintain attitude for
Eliminate hard maximize
quality with minimum constant
work quality &
maximum inventory improvement
efficiency &
efficiency based on
minimize effort
teamwork &
cooperation

34. 5 S Concept:
Seiton
Straightening Out
B
Seiri A C Seiso
Sorting Cleaning Up
5s
Shitsuke E D Seiketsu
Sustaining the Standardizing
Practice

35. Waste of Waste in Waste in
REJECTS DESIGN WIP
quality cost delivery
NINE
WASTES !! product
Waste in
Method / system
FIRST PHASE OF PRODUCTION
resources
manpower facilities money
Waste in Waste in Waste in Waste in Waste in
MOTION MANAGEMENT MANPOWER FACILITIES EXPENSES
// YIS//062709//

36. Shortened lead time
Reduced time spent on non-process
work
Reduced inventory
J
I
T Better balance between different
processes
Problem clarification

37. Design
Product
planning
Top Administration
management responsibility:
responsibility :
Strategy &
QCS Production
preparation Provide
support
Planning
Marketing
Production
&
Purchasing

38. Kaizen Management

39. Management & Labor ;
Enemies or Allies?
Cooperation
Working together to bake bigger pie
Confrontation
fighting over how to divide the pie

40. Manager's first job is to learn to communicate with his
employees so both workers and the company can achieve their
common goal
Union leader who cannot understand financial
statement and analyze the company's
performance will not be able to negotiate with
management on such labor-related subjects as
technological innovation, personnel transfers, and
scrapping facilities

41. The Kaizen Approach to Problem
Solving

42. When there is no
problem , there is no
potential for
improvements
KAIZEN starts with a problem,
more precisely the
recognition that a
problem exists

43. Seven Statistical
tools New Seven tools
• Pareto diagrams • Relations diagram
• Cause & Effect diagram • Affinity diagram
• Histograms • Tree diagram
• Control charts • Matrix diagram
• Scatter diagram • Matrix data-analysis diagram
• Graphs • PDPC (Process Decision
Program Chart)
• Check-sheets
• Arrow Diagram

44. Who What Where When Why How
Who does it? What to do? Where to do it? When to do it? Why does he do it? How to do it?
Where is it
Who is doing it? What is being done? When is it done? Why do it? How to do it?
done?
Who should be What should be Where should When should How should it be
Why do it there?
doing it? done? It be done? it be done? done?
Can this method
Who else can do What else can be Where else can What other time
Why do it then? be used in other
it? done? it be done? can it be done?
areas?
Where else
Who else should What else should be What other time Is there any other
should it be Why do it that way?
do it? done? should it be done? way to do it?
done?
Where are 3- Are there any 3- Are there any
Who is doing 3- What 3-Mus are Are there any time
Mus being Mus in the way of 3-MUs in the
Mus? being done? 3-Mus ?
done? thinking? method?

45. VELOCITY FOR COMPETITIVE
ADVANTAGE
Standardization
Process optimization
Elimination of waste
Evolution in people and technique
Durable training

46. CUTTING
CHANGE
1. Form a team &
allocate
OVER TIME
responsibilities
7. Set-up board for
visualization & 2. Measure
monitoring current
state
Seven
6. Analysis &
Steps
improvem 3. Analysis &
ent improvement
5. Set process
4. Apply first
with new
improvement
scenario

47. Kaizen Costing Concept

48. Kaizen Costing Concept
 Target Costing is a process,
 Ensuring that the products are
designed in such a way that the
company can sell them cheaply &
still make a fair profit.
 Kaizen costing focuses on the
value & profitability of the
manufacturing phase, both of new
& existing products.
 Kaizen costing activities should be
a part of a process of business
improvement continuously, with
improvements in quality, product
functionality and service jointly.

49. Kaizen – Changing the
Corporate Culture
“A never-ending journey”

50. The customer : 1
The ultimate Judge of quality
The eye of the needle – 2
struggle to enter the market
Supplier relations 3
Changing Corporate culture : 4
Challenge to the west
“We call some societies primitive
because of their desire to remain in the
same state and in unchanging standard
of living – as their ancestors created
them at the beginning of time”

51. Establishing better Developing additional
criteria to measure supply sources that
optimum inventory can ensure faster
levels delivery
BUY
(Outside
contactors)
Improving the quality
Improving how orders
MAKE are placed
of information provided
to suppliers
(part time
/contract
employee)
Establishing better Understanding the
physical distribution suppliers internal
system requirements better

52. Companies applying Kaizen
Pharmaceutical Industry:
Food and Beverages Industry
Boehringer Ingelheim
Nestlé
Sanofi Aventis
Unilever
Pfizer
Financial Services Cadbury Schweppes
Schwarz
Societe Generale Bongrain
Merck
Unilabs National Australia Bank/Bank ofSadia
Tchibo
Zydus Cadila New Zealand
N.M. Rothschild Bacardi
Europcar Lease Services Pernod Ricard
Commonwealth Bank Brown Forman
Adelaide Bank Hochland
St.George Bank
Healthcare Public Sector
Independent Hospitals of Australia Government of the United Arab
Hospital General de Santo Antonio Emirates
Calgary Laboratory Services Government of Mauritius
Mayo Clinic Government of Kenya
Danbury General Hospital Government of India
Owensboro Medical Health System

53. 7 Principles of Toyota
Production System (TPS)
1. Reduced Setup Times
2. Small-Lot Production
3. Employee Involvement and
Empowerment
4. Quality at the Source
5. Equipment Maintenance
6. Pull Production
7. Supplier Involvement

54. Statements on KAIZEN
“The starting point for improvement is to recognise the need. This comes
from recognition of a problem. If no problem is recognized, there is no
recognition of the need for improvement. Complacency is the arch-enemy
of Kaizen. Therefore, Kaizen emphasizes problem-awareness and
provides clues for identifying problems.”
Masaki Imai
“Improve constantly and forever the system of production and service.
Improvement is not a one time effort. Management is obligated to
continually look for ways to reduce waste and improve quality.”
W. Edwards Deming
(philosophy of quality control)
“The Kaizen philosophy assures that our way of life, or our home life,
deserves to be constantly improved”
- Masaaki Imai
Want a Kaizen Culture? Take You Vitamin C!
Kaizen Principle: Be like MacGyver, use creativity before capital!

55. Conventional Japanese
Wisdom Revolutions
Higher quality leads to Higher quality leads to
higher costs lower costs
Larger lots lead to lower Smaller lots lead to
costs lower costs
Workers do not need to A thinking worker is a
be taken into account productive worker

56. KAIZEN
PHILOSOPHY
“Be it our working life, our social
life, or our home life, deserves to
be constantly improved”

57. Good is never good enough,
kaizen is a never-ending journey to
excellence.
Thanks