kaizen continuous improvement philosophy
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The KAIZEN Challenge
GEMBA KAIZEN PHILOSPHY
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KAIKAI
ZENZEN
ChangeChange
Good(for the better)
Good(for the better)
KAIZEN = Continual ImprovementKAIZEN = Continual Improvement
Definition of KAIZENDefinition of KAIZEN
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KA
IZ
ENinvolves everyone top management, managersand workers of all levels.
continuous improvement
/ on-going improvement.
major part ofworking culture
Doing without realising it
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WHY and HOW did KAIZEN helped Japan
become A Major Global Player.
Business Environment Globally
In the 1960s and early 1970s, unprecedented growth with
tremendous demand for new technologies and new products.
Re-Engineering strategy shows best results
Rapidly expanding markets
Consumers more towards quantity than quality.
Products sell by themselves
There is abundant and low cost-resources
A belief that innovative products could offset sluggishperformance in traditional operations.
Management more concerned with increasing sales andmarket shares than with reducing cost.
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The new situation (70s) :
Cost of material, energy and labour - Sharp increases
Overcapacity of production facilities
Increased competition in saturated or dwindling
markets (sunset industries)
Consumer values demanding quality first The need to introduce new products more rapidly
The need to lower breakeven point
The oil crisis
in 1970s!!!!
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To a company, this meant
Increased cost of resources
Stiffer competition
Quality level achievement strategic to wincustomers
The need to develop customer-orientatedproducts and services fasterthan everbefore.
Delays in adopting the latest technologyare costly
Delays in adopting improved managementtechniques are costly
Japans KAIZEN Strategy was able to meet the challenges
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1. Need for high flexibility to respond tomarket changes and customersrequirements
2. Greater control for investments and theneed for high returns on investments
3. Faster life cycle of products4. Increasing cost pressure and price wars
5. Global relocation to countries of most-benefit, e.g. China
The Challenges Facing Us in the 21st Century
KAIZEN strategy can work for any companythat takes advantage of the Kaizen tools and
turn them into a competitive advantage.
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The Kaizen Strategy
No cultural factorsMany Japanese management strategies succeed
simply because they are good management practices.
Over the last thirty years, many companies in many
countries worldwide (including Malaysia Look East)have successfully adopted them.
The lack of cultural bias means that these practices
can be just as successfully implemented anywhere.
The difference is not one of nationalitybut one of mentality.
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Problem Recognition
o recognition that ANY and EVERY
company has problems in their
operations.
o corporate culture everyone canfreely admit these problems.
o problems become opportunities
for improvement and solutions.
o They will not be hidden, covered
up or neglected.
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Problem Solving
problems as opportunities for
improvements and solutions.
problems are collectiveresponsibilities to be solvedtogether.
Cross-functional problems(involving a few departments, suchas design or launching newproducts) in Western managementare seen in terms of conflict-resolution.
apply systematic and collaborativeapproach for cross-functionalproblem solving.
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Customer Driven
management must satisfy the customerand serve customers needs if it is to stayin business and make a profit.
Customers concerns include the critical
areas of cost, quality and scheduling.
All Kaizen activities should eventuallylead to increased customer satisfaction.
Customer is King
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ProcessOrientated
Everyone is involved in change every day
There will be no progress if you keep on doing
things exactly the same way all the time.
Kaizen generates a process-orientated way ofthinking
Management supports and acknowledges peoples
process-orientated efforts for improvement.
Contrast to Western management practice of reviewing peoples
performance strictly on the basis of results and not rewarding the effort
people make.
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KAIZEN is notTotal Corporate Strategy
Kaizen does not REPLACE Corporate Strategy.
e.g. considerations of Product design andmarketing strategy, innovations anddiversifications
Important for top management to always checkactual market conditions and trends, informationfrom customers and competitors.
Identify the trade cycles (cyclic conditions orproduct life cycles sunrise and sunset
industry/technology)
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Kaizen WORK CULTURE
CONTINUOUS IMPROVEMENTINVOLVES EVERYBODY
Re-Engineering - TECHNOLOGYDRIVEN
THRIVE ON HIGH and FAST
GROWTH IN ECONOMY
Kaizen Strategy Problem Recognition
Problem Solving
Customer Driven
ProcessOrientated
Part of Total Corporate Strategy
KEY POINTS
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KAIZEN
And
MANAGEMENT
Management has two components
Management works to MAINTAIN its operationsAnd
Management works to make IMPROVEMENTS
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Maintenance :
activities to maintain current technological,
managerial and operating standards
Management first establish policies, rules,
directives and procedures (Standard
Operation Procedures SOP)
Ensure compliance by workers.
Enforce through discipline if needed
Management provide training or review
Revise the standard so that people can
follow it.
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Kaizen :
Kaizen is incremental improvements that iscontinuous
Many small improvement steps lead to total bigstep
Improvements are made with little cost involved
It involves all the employees at all levels
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Improvement :
activities directed toward improving current standards.
Two components Re-ENGINEERING and KAIZEN
Re-ENGINEERING1.Involves a drastic improvement to current conditions
2.Large investment in new technology / equipment
3.Long periods in between these innovation jumps
4.Specialist and selected top people are involved only
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MAINTENANCE
And
IMPROVEMENT
WHERE TO DRAW THE LINE??
How much of your capability is used for each?And
How about the whole organisation?
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Top Management
Middle Management
Supervisors
Workers
Improvement
Maintenance
Responsibility and Contribution
All Job Functions has the two components
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Top Management
Middle Management
Supervisors
Workers
Improvement
Maintenance
Responsibility and Contribution
GEMBA KAIZEN Perception of Job Function
KAIZEN
All levels of employees can do KAIZEN
Some will do Re-Engineering
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Top Management
Middle Management
Supervisors
Workers
Improvement
Maintenance
Responsibility and Contribution
Western Perception of Job Function
Some will do Re-Engineering
All levels of employees do maintenance
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Kaizen
Nurtures small and
ongoing changes
(alive, like a flowering
plant)
Kaizen
Needs no large investment to implement
Needs continuous effort and commitment.
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KAIZENKAIZEN
Incremental But Continuous Progress
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Re-Engineering - like a volcano that erupts in abrupt
explosions from time to time.
Ideal pattern the STEP
Time
Ex : Capacity for new machine 3000/day
Quality of new products when set up 10,000ppm
Reliability zero breakdown 30,000 hrs/mth
Sales volume 3 million pieces/month
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RERE--ENGINEERINGENGINEERING
THE IDEAL
Dramatic But
Intermittent
Progress
Higher StandardAchieved Through Re-engineering Is Subject
To Deterioration Unless Continuing EffortsAre Made First To
Maintain ItAnd Then To Improve It
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After implementation of a new system,
it starts to deteriorate
Actual pattern from Re-Engineering
Performance
Drops
Benefits ofRe-Engineering lost with time
Unless
Effort is made to MAINTAIN and IMPROVE thestandards
Time
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Time
Re-Engineering
What should be
(Standard)
Maintenance
Maintenance
What should be(Standard)
What actually is
Re-Engineering
Alone
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Time
Re-Engineering
Re-Engineeringplus KAIZEN
Re-Engineering
KAIZEN
KAIZEN
Kaizen - constant effort not only to maintain
but to upgrade standards
Everynew standard is temporary,
only a stepping stone to the next improved one.
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MAINTENANCE
RE-ENGINEERING
KAIZEN
MAINTENANCE
KAIZENKAIZEN PLUSPLUSRERE--ENGINEERINGENGINEERINGDesirable Progress By
Combination OfTwo
Opposing Methods
RE-ENGINEERING
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People are Biggest Assets
Kaizen depends on everyone
doing theirlittle bit
to move the mountain
Skills and Experience makes workers theexperts in their process
Investing in Kaizen means investing in people
Kaizen is people-orientated
In contrast innovation is technology-
and money-orientated.
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Emphasis Kaizen Re-engineering
Effect Long-term But Undramatic Short-term But Dramatic
Pace Small Steps Big Steps
Timeframe Continuous And Incremental Intermittent
Change Gradual And Constant Abrupt And Volatile
Approach Group Efforts Individual Ideas And Efforts
Involvement Everybody Selected Few
Mode Maintenance And Improvement Scrap And Build
Know-how Conventional Know-how Technological Breakthrough
Requirement Little Investment Large Investment
Orientation People Technology
Evaluation Process And Efforts Results For Profits
FeaturesOfKaizen vsRe-engineering
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Kaizen and QC
Quality Control (QC), the old view :
1. Inspection of finished goods andproducts.
2. Only concerned for product-quality control
3. This is the narrow viewpoint ofQC
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Quality Control in Gemba Kaizen
Quality Control - beyond prevention of defects from
reaching the customer.
Quality Control are the goals of the company :
To provide productsand
service
sthat satisfycustomer requirements and earn customer trust
Steer company towardshigher profitability by
improving internal management.
Prosperity to AllTogether.
Help employees fulfill theirpotential for achieving
the corporate goal through policy deployment and
voluntary activities.Mankichi Teteno (President of Japan Steel Works )
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Centered on improvement of managerial
performance at all levels, like :
quality assurance
cost reduction
meeting production quotas or targets
meeting delivery schedules safety
Human Resources development
new products development
productivity improvement supplier management
KAIZEN is the spirit of Quality Control
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Kaizen QualityImprovement Cycle.
Building quality into people means helping them becomeKAIZEN-conscious.
KAIZEN Quality Improvement Cycle is used irrespectiveof cross-functional or functional problems.
1
24
3
1. Identify the problem
3. Use problem-
solving tools for
counter-measures
2. Standardizeresults to
prevent re-occurrence
4. Identify
the next
problemto tackle
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Kaizen QualityImprovement Cycle.
Practice cycle continuously to builddiscipline
By going through these cycles continuously, it becomes a habit in action,
leading to habits in thinking and
finally people become Kaizen-minded
Quality Control thengoesbeyondprevention
ofdefects fromreaching the customer.
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1
23
4
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KEY KAIZEN CONCEPTS
UNDERSTANDING and PRACTISING
KAIZEN CULTURE
THROUGH
KAIZEN KEY PHRASES
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Speak with Data
Kaizen emphasises the use of data.
Every thing can be put down to a number (quantified)
and every number can be given a cost (costing).
We should talk with data and facts
When you see data, doubt it!
When you see the measuring instrument, doubt it!
When you see chemical analysis, test results, doubt it!
There are such things as false data, mistaken data andimmeasurable factors.
Kaoru Ishikawa (author Japanese Quality Control)
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Quality First, Not Profit First
Reflects the belief in
Quality forQualityssakeand
Kaizen forKaizenssake.
If you take care of the quality, the profits will take care ofthemselves.
Quality here refers to the broader meaning of quality,including quality assurance, cost reduction, efficiency,delivery and schedule, safety and employees morale, etc.
Seeking improvement for improvements sake is the surestway to strengthen their companies overall competitiveness.
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Managing the Previous Process
Go back to the previous process to seek the cause of a
problem at your process.
WHY did this problem reach my process?
Problem solving methods are used e.g. 5WHYs, 5W 1H,
Improvements comes from being aware of what comes
from the previous process.
YOU DO, I CHECK!
There should be no assumption of the quality that
reaches us. Gemba!
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The NextProcess is My Customer.
Process has become impersonalized. No feeling.
Neversenddefectiveparts to those in thefollowing process.
Be sincere enough to admitourownproblems
claim ownership of your process
Do everything in your powers tosolve them.
I DO, I CHECK
I am the managerofmy process.
Assuring quality to each customer at each stage willassure quality in the finished product
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Standardise the Results
Not every operation in a work process need to bestandardised.
Identify the critical elements that must be measured and
standardized :
cycle time, tact time, work sequence, pre-start
checklist and conditions, standard time.
Standards - binding on everyone.
Managements job is to ensure everyone works inaccordance with the established standards.
This is called Discipline
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Every worker is in gemba for at least eight hours
Everyone is always busy and working
People moving around in a hurry or with a purpose
How much of this time and energy is actually addingvalue?
MUDA means waste
There is a much deeper connotation
MUDA
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WHY is MUDA important?
Work is a series of processes or stepsStarting with raw material and ending with a
final product or service
At each process, value is added to theproduct or service
(In the service sector a document orother piece of information)
Then it is sent to the nextprocess
The resources at each process people and
machines either add value or it does not
MUDA is any activity that does not add value
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MUDA in gemba is classified into
the following seven categories:
MUDA ofoverproduction
MUDA ofinventory
MUDA ofrepairs / rejects
MUDA ofmotion
MUDA ofprocessing
MUDA ofwaiting
MUDA oftransport
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I. MUDA of OVERPRODUCTION
1. Usually start with the thinking of line supervisors
2. Worried about problems such as machine failure,rejects, absentism
3. Feels urgent need to produce more than necessary
just to be on the safe side4. Tries to get ahead of the planned production
schedule
5. With expensive machines, prioritise maximum andefficient use rather than the quantity required tofulfill sales requirements
6. Excess workers who may be idle, maximizeworkers efficiency
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I. MUDA of OVERPRODUCTION
Muda
What are the potential MUDA
due to theOverproduction ?
MUDAlead
s
to COST
& LOSS
ES
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I. MUDA of OVERPRODUCTION
Muda
Extra consumption of raw materials before actual
sales requirement
Usage of manpower and utilities (electricity,
overheads)
Diversion of machinery, even adding machinery to
increase capacity Increase in interest burden (cost of purchase)
Additional space to store excess inventory
Added transportation and administrative costs
Gives people a false sense of security
Helps cover up actual problems
Confuses data and information that can provide clues
for kaizen
Cost of production increase without increase of value
Potential of no sales turning into dead-stock
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II. MUDA ofINVENTORY
Inventories of Final products,
semi-finished products
(work-in-progress),
parts and supplies
All inventory does not add value.
Inventories just stay there and gather dust.
Inventory adds cost to operation
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III. MUDA of REPAIRS / REJECTS
Rejects interrupt production
(eg need for recovery)
require expensive rework
may have to be scrapped
waste of resources, effort
High speed production systems
may cause damage to expensive jigs andmachines
workers assigned just to monitor and stopthe machine when defects are detected.
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IV. MUDA of MOTION
Motion of a persons body that is not related to addingvalue
Walking : does not add value
Lifting : carrying or lifting heavy objects
Transferring :
pick up, transfer to another hand
(eg. Sewing, crimping process)
distance of parts and tools
Not following the standard process, worse cycle time
Actual motion of a worker that adds value to a productis usually a few seconds.
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IV. MUDA of MOTION
1. Identify actual value added motion and
- reduce the other muda of motion
2. Observe the way operators use their
a) Handsb) Legs
c) Head (including eyes)
d) Body (twist, lean, transfer position)
3. Re-arrange placement of parts / jigs / actuators(switches)
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V. MUDA of PROCESSING
Processing refers to
the modifying to a workpiece or
a piece of information
in order to add value to it and
send it to the next process.
Muda can be caused by:
1. Weaknesses in the technology used (equipment, jigs)
2. Weakness in the design of products
3. Weakness in design of process flow
4. Failure to synchronise process (over control ofspecification at some stations, relaxed in others)
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VI. MUDA of WAITING
The worker cannot do his value added
work due to idling
his hands, body are idle
interruption that stops him continuing
his work
workers are available for and want towork but is left waiting
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VI. MUDA of WAITING
Muda can happen due to
line in-balance (the previous process cannot
pass parts to him)
the lack of fresh parts coming to his process
machine or jigs breakdown
the workers job is only to monitorautomatic
machines performing the value added job
Workers waiting while a machine is doing the
value added job. This is most difficult to
detect. wrong parts are delivered
line equipment set up for model changes
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VII. MUDA ofTRANSPORT
Transport is essential part of operationsBUT it does not add any value to products
no matter how many times or
how fast we do it
Isolated Island process - streamline!
Reducing transportation reduces
excess inventory,
waiting,
non-value added packing, data and mixing control,
equipment and materials etc.
Other MUDAs!
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GEMBA KAIZEN will reduce theMUDAs through applying theKaizen Cycle continuously :
MUDA ofoverproduction
MUDA ofinventory MUDA ofrepairs / rejects
MUDA ofmotion
MUDA ofprocessing
MUDA ofwaiting
MUDA oftransport
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GEMBA KAIZEN
GEMBA means the real place
the place where real action occurs
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GEMBA MANAGEMENT Relationship
Gemba
provides product or service that satisfies customers
achieves goals set by management
the place to achieve real improvements
kaizen is effectively implemented
Management takes initiative in establishing policies, targets and
priorities
accountable for the outcome /success
allocating resources such as manpower and money
exercise leadership
decides the most urgently kaizen strategy
listen and learn from employees in gemba
provide most appropriate help to actual problems
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1. When a problem arises (abnormality) goto gemba first
2. Check the gembutsu(relevant objects)
3. Take temporary countermeasures on thespot
4. Find the root cause
5. Standardize to prevent recurrence
The Golden Rules
of
Gemba Management
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1. Go toGemba First
The Gemba Circle training method
Nothing else matters.
When you have a concern with
Gemba,
You must go there first.
All other action is futile (MUDA)
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2. Check theGembutsu
Gembutsu means something physical, tangible
Broken down machine,
rejected product,
tool damaged,
returned goods,
a complaining customer
Gembutsu in Gemba find the actual root cause
listen to gembutsu
Let the gembutsu speak to meUsing the 5 senses plus commonsense
Be proud of the scars on your hands Soichiro Honda
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3. TakeTemporary Countermeasure
on the Spot
You can always take temporary
countermeasures to keep the process moving.
Every second lost to production is lost forever.
This is a terrible MUDA.
Do it now. Do it right away!
Remember who and where the money earners
are!!
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4. Find the RootCause
o Use simple analytical tools and common sensesolutions
e.g. 5 WHYs
o Deeperstatistical tools will be needed morecomplicated problem
o Gemba can provide the necessary information
Do not jump to conclusions too fast
Do not make a simple problem into a
complicated crisiso Solutions to be gotten from gemba (relevant
application)
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4. 5 WHYs
o Why are you throwing sawdust onthe floor?Because the floor is slippery and unsafe
o Why is it slippery and unsafe?Because there is oil on it
o Why is there oil on it?Because the pump parts are leaking
o Why is it leaking?Because the oil is leaking from the pumpcouplings
o Why is it dripping?Because the rubber seals are not fiittedproperly.
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5. Standardize to prevent Recurrence
Once a problem has been solves, standardise thenew procedure
All similar problem area in gemba should nowfollow the new standard way of working.
Critical points and processes should bedocumented as standards to avoidmisunderstanding.
Standardisation is one way for all in gemba tobenefit from the Kaizen improvements.
Strategy of KAIZEN towards EXCELLENCEStrategy of KAIZEN towards EXCELLENCE
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Customer
driven
People
Culture
Leadership
Involvement
Commitment
QQ
CC
DD
Concepts
Systems ToolsHR
Strategy of KAIZEN towards EXCELLENCEStrategy of KAIZEN towards EXCELLENCE
Improvement & Maintenance
Process Focused
Quality First Management By Data
Next Process Is Your Customer
PDCA/SDCA
TQC/CWQC/TQM
TPS
TPM
Policy Deployment
Suggestion System QIT/ICC/SGA/QCC
5S
7QC Tools
Kanban
Cell Manufacturing
Single Piece Flow
SMED
SPC
Takt Time
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