SIOM | Symbiosis Institute of Operations Management

Presentation Topic :KAIZEN

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Decoding KAIZEN Japanese Terminology.

Change for Better.

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Concept of Kaizen• People who perform the task are most knowledgeable about that process.

• It must be achieved with 100% participation.

• This team work encourages innovation and change.

• Helps break barriers and makes room for continuous improvement.

• Focuses upon Small but Continual Improvement.

• Approach towards higher standards in Quality enhancement and Waste reduction.

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Three Pillars of Kaizen

HOUSEKEEPINGWASTE

ELIMINATION i.e. MUDA

STANDARDIZATION

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1. HOUSEKEEPING

The following can be employed using the 5S methodology

5s includes

Seiri (Sort)

Seiton (Set in Order)

Seiso(Shine)

Seiketsu (Standardize)

Shitsuke (Sustain).

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2. WASTE ELIMINATION (MUDA)

There are seven types of wastes which are classified as:Muda of overproduction.Muda of inventory.Muda of defects (repair or rejects).Muda of motion.Muda of processing.Muda of waiting.Muda of transportation

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3. STANDARDIZATION i.e. PDCA Cycle

• PLAN : Identifying & Analyzing the problem.

• DO : Developing and Testing a Potential solution.

• CHECK : Study and Compare the results.

• ACT : Implementing the Improved solution fully.

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Elements of Kaizen Kaizen comprises of five basic elements:

TeamworkPersonal discipline Improved morale and employee satisfactionQuality circles Suggestion for Improvement

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Kaizen cultureCreating a synergy between Management and the shop floor /

operations teamThe CEO must spearhead Kaizen initiative.Management must commit required funds, time and other

resources for all employees right from grass root levels to top.Mapping results to processes

Processes are required to be set up to give a vivid picture to organizational members whether results of a particular Kaizen initiative can be directly attributed to that initiative.

BrainstormingOrganizational members need to brainstorm ideas and then

implement outcome of such brainstorming sessions so that everyone is able to see the problem and try solutions.

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Embedding Kaizen Culture

Establish the champion

Establish a governing committee

Start communication boards and newsletters

Regularly track Kaizen activities on a dash board

SIOM | Symbiosis Institute of Operations Management

SIOM | Symbiosis Institute of Operations Management

Benefits of KaizenKaizen involves every employee in making change in most

cases small, incremental changesIt focuses on identifying problems at their source, solving them

at their source, and changing standards to ensure the problem stays solved

Kaizen reduces waste in areas such as inventory, waiting times, transportation, worker motion, employee skills, over production, excess quality and in processes

Kaizen Improves space utilization, product quality, use of capital, communications, production capacity and employee retention

Kaizen Provides immediate results. Instead of focusing on large, capital intensive improvements, Kaizen focuses on creative investments that continually solve large numbers of small problems.

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Drawbacks of KaizenIt’s not a programmed approach but a philosophical

approach.It doesn’t encourage radical changes but a gradual change

over a long period of time.It requires continuous monitoring ,supervision and

mentoring to maintain the spirit of kaizen.It works well when the average age of employees is low.

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Companies adopting Kaizen

GSK NASHIK

1. Corrective and preventive actions (CAPA) are formed.2. GEMBA is carried out in the form of miniature audits.3. Current issues and suggestions from the shop floor and

other departments are considered.4. This is done in such a way that daily day to day activities are

not affected.5. GSK is formulating a system called Glaxo Production

Management (GPM) system in lines with Toyota Production Management (TPM) system.

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Companies adopting Kaizen

FIDELITY INVESTMENTS

1. Fidelity Investments is the largest and best-known mutual fund manager in the United States.

2. Fidelity's commitment to Kaizen is reflected in its performance management and compensation systems.

3. Each fall, Fidelity companies establish business goals which are tiered through the company's various divisions down to the individual managerial level.

4. Progress towards goals is evaluated and adjusted on a monthly and quarterly basis.