kaizen basic

35
Kaizen Kaizen is a restless state of constant questioning, re-appraisal and incremental improvements, however tiny. One of the principles used in Kaizen is “1% improvement“ - the idea of looking for and acting on tiny improvement possibilities- every day. KAIZEN> Introduction Kaizen means 'gradual, unending improvement, doing little things better' -Masaaki Imai. Kaizen is a combination of two Japanese words, Kai - meaning change and Zen - meaning good. Kaizen thus means change for the better. Kaizen is applicable to any area from an individual’s personal life to a complex business process. In a work environment Kaizen is understood as gradual, orderly and continuous improvement involving minimal investment. Kaizen is a restless state of constant questioning, re-appraisal and incremental improvements, however tiny. One of the principles used in Kaizen is “1% improvement” - the idea of looking for and acting on tiny improvement possibilities- every day. Kaizen’s role in business: Two aspects should necessarily be part of an initiative for it to be termed as Kaizen. One is improvement and the other it should be ongoing. Any improvement on its own cannot be termed as Kaizen. For instance, a one time new idea that revolutionised a business cannot be termed as Kaizen. This is because though the idea brought about an improvement, it was a one -time affair. Similarly, a process may be ongoing, but it cannot be called Kaizen if it is not improving. Kaizen should contain both the aspects of ongoing improvement. Maintenance, innovation and kaizen are the three functions that should occur simultaneously in any organisation. Maintenance refers to the smooth functioning of the current state, setting up procedures and implementing standards. Usually, lower level personnel are responsible for maintenance. Innovations are breakthrough activities such as introducing new technologies, new machines and equipment, or R&D breakthroughs. Kaizen is an intermittent function involving small steps but with continuous betterment. Lower/middle management and workers with encouragement and direction from the top management should implement it. The History: The history of Kaizen dates back to the 1950s when Toyota decided to introduce quality checks within its processes. Quality was inspected at every stage of the production process instead of checking for defects in the finished product. The deviations identified were rectified in the process stage itself. This led to making continuous improvement in the small details of a process, which later came to be known as Kaizen. Taiichi Ohno the man behind the Toyota Production System envisioned this concept. The Kaizen philosophy is one of the drivers behind the Japanese quality. Throughout the later half of the last century the Japanese applied Kaizen principles in their workplace. They developed better processes and innovative products and became leaders in the industrial world. Up until the 80’s the rest of the world was left guessing about the real reason behind the Japanese success. It was a book titled, ‘Kaizen-The key to Japanese Competitive Success’ written by a Japanese named Maasaki Imai that introduced Kaizen to the rest of the world. Soon top-notch American and European companies like Ford, AT&T, Siemens, Phillips and General Motors began applying Kaizen.

Upload: rajaabid

Post on 12-Nov-2014

3.328 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Kaizen Basic

Kaizen

Kaizen is a restless state of constant questioning, re-appraisal and incremental improvements, however

tiny. One of the principles used in Kaizen is “1% improvement“ - the idea of looking for and acting on tiny

improvement possibilities- every day.

KAIZEN> Introduction  

Kaizen means 'gradual, unending improvement, doing little things better'                                                                                                             -Masaaki Imai.

 Kaizen is a combination of two Japanese words, Kai - meaning change and Zen - meaning good. Kaizen thus means change for the better. Kaizen is applicable to any area from an individual’s personal life to a complex business process.

In a work environment Kaizen is understood as gradual, orderly and continuous improvement involving minimal investment.

Kaizen is a restless state of constant questioning, re-appraisal and incremental improvements, however tiny. One of the principles used in Kaizen is “1% improvement” - the idea of looking for and acting on tiny improvement possibilities- every day.

Kaizen’s role in business:Two aspects should necessarily be part of an initiative for it to be termed as Kaizen. One is improvement and the other it should be ongoing. Any improvement on its own cannot be termed as Kaizen. For instance, a one time new idea that revolutionised a business cannot be termed as Kaizen. This is because though the idea brought about an improvement, it was a one -time affair. Similarly, a process may be ongoing, but it cannot be called Kaizen if it is not improving. Kaizen should contain both the aspects of ongoing improvement.

Maintenance, innovation and kaizen are the three functions that should occur simultaneously in any organisation.

Maintenance refers to the smooth functioning of the current state, setting up procedures and implementing standards. Usually, lower level personnel are responsible for maintenance.

Innovations are breakthrough activities such as introducing new technologies, new machines and equipment, or R&D breakthroughs.

Kaizen is an intermittent function involving small steps but with continuous betterment. Lower/middle management and workers with encouragement and direction from the top management should implement it.

The History:The history of Kaizen dates back to the 1950s when Toyota decided to introduce quality checks within its processes. Quality was inspected at every stage of the production process instead of checking for defects in the finished product. The deviations identified were rectified in the process stage itself. This led to making continuous improvement in the small details of a process, which later came to be known as Kaizen. Taiichi Ohno the man behind the Toyota Production System envisioned this concept.

The Kaizen philosophy is one of the drivers behind the Japanese quality. Throughout the later half of the last century the Japanese applied Kaizen principles in their workplace.  They developed better processes and innovative products and became leaders in the industrial world.

Up until the 80’s the rest of the world was left guessing about the real reason behind the Japanese success. It was a book titled,  ‘Kaizen-The key to Japanese Competitive Success’ written by a Japanese named Maasaki Imai that introduced Kaizen to the rest of the world. Soon top-notch American and European companies like Ford, AT&T, Siemens, Phillips and General Motors began applying Kaizen.

Continue the tour:Welcome To The Shop Floor

Concept > Welcome To The Shop Floor

Maasaki Imai recommends that managers go down to the Gemba (Japanese for shop floor) more often to observe the nitty-gritty of the production processes. Hands-on experience is what triggers off the grey cells.

He says. “The key is to be inquisitive. If I, as a manager, notice a leak in one of the machines I must be able to track down the problem. I must know that the leak is because of a gap, which has been caused by the vibrating action of the machine.

Page 2: Kaizen Basic

And that the vibration has caused two specific screws to loosen and cause the gap.” After putting forth the case, he continues, “The immediate solution could be in tightening those two screws every morning before starting the machine. Thus, avoiding the possibility of a leak.” The next step would be to find a more long-term solution. Sounds simple. Well, because it is. That is Gemba Kaizen.

The above instance highlights opportunities in the manufacturing industry. But what about the fastest growing sector, the service sector? Can Kaizen be implemented in the service sector too? Yes it can!

Service too involves processes be it the front- end facing customers or back -end processing operations. Thus, there is a great scope for making improvements such as reducing lead times, improving customer service and simplifying procedures. Hotel Taj is a classic example.

The Taj group is a leading five star hotel chain in South Asia. One of their hotels the Taj Mahal, decided to adopt Kaizen. They divided their 44 middle managers into 11 cross-functional teams and allocated different divisions to observe and suggest changes. The teams were asked to implement the suggestions within four days. Some of the changes made resulted in better customer service.

For example, customer check-in normally took about 10 minutes but with Kaizen they managed to cut it down to two minutes. They made simple changes like placing the credit card swiper under the counter, which was earlier away from the counter. They are still in the process of reducing the check-in time to 90 seconds.

More than a process change, Kaizen involves a change in attitude beginning from the top management. It also involves questioning certain preconceived notions. For instance, in the Taj case, earlier the assumption was that people went to a Five Star restaurant for the experience. Hence the order placed would be processed slowly, giving the customer time to muse. Some customers though may be in for a quick cup. The restaurant must thus be geared to meet individual needs.

Kaizen helps organisations purge red tapism. As organisations have grown, systems and hierarchy have gained an overpowering importance. Taj plans an entire revamping by introducing a flat organisation structure which it hopes to complete the within two years.

Unlike some other methodologies, Kaizen is neither complicated nor expensive. It shows that the problems in the company are not as intractable as they often seem.

Kaizen activities whether individual or group, veer round improvement of

Work. Working environment. Process. Machine capability i (minimum down time). Production aids (jigs, fixtures, tools etc.). Service areas – office work. Quality. Customer service and customer relations. New products (ideas). HUMAN individual capabilities.

Japanese management believe that managers should spend half their time in making improvements and eliminating waste. Management – oriented Kaizen should result in:

Achieving maximum efficiency and quality. Minimum inventory. Eliminating methods that cause fatigue to workmen. Maximising utilisation of facilities, tools etc to achieve efficiency. An open management, which allows questioning of the existing systems and processes. Encouraging learning and providing opportunities for its employees to learn. Encouraging synergistic teamwork and cooperation. Striving for and catalysing continuous improvement at all levels. Systems improvement.

Kaizen is about involved leadership that guides people to continuously improve their ability to meet expectations of high quality, low cost, and on-time delivery.

Page 3: Kaizen Basic

Techniques and Methods > Problem Solving

“You can't do Kaizen just once or twice and expect immediate results. You have to be in it for the long haul.”                                                                                                                                                                        - Maasaki Imai

Kaizen is a simple approach that uses common sense and cost effective techniques. The place where Kaizen is performed is called Gemba. In Japanese Gemba is the “place where the real action takes place”. It is the work place where the products are made and the services provided.

The two different opportunities in the Gemba where Kaizen can be implemented are in Problem Solving and making Everyday Improvements.

The 5-Gemba principles used in Kaizen problem solving are:

a. Get to the Gemba:Most managers wish to work on their desks rather than going to the Gemba -the place where the real work gets done. They prefer to get information regarding any problem by means of reports or regular meetings. Being secondary sources of information these are not sufficient for understanding the problem completely. Gemba is the place where one can observe the nuts and bolts of the production process. Hence, the manager should make it a point to visit the Gemba instead of trying to solve a problem from his desk.

b. Get hands on feel of the Gembutsu:In Japanese “Gembutsu “ is the specific location where the problem occurs. For example, if the problem is with a particular machine then the machine becomes the Gembutsu.  If the problem is in billing then the billing counter becomes the Gembutsu.

The manager should personally test and observe the Gembutsu to understand the problem better. He will then be in a position to suggest and approve better solutions.

c. Take interim measures immediately: To find an effective solution for any problem, the root cause for the problem has to be identified. This could be time consuming. Stopping a machine from running until the root cause is identified may prove costly. Therefore, temporary measures should be taken to tide over the present need. Meanwhile, detailed investigation and analysis should continue. 

d. Get to the root of the problem:To prevent recurrence of the problem the root cause has to be identified and addressed. Various methods such as FMEA analysis or the 5 Whys technique can help identify the root cause of the problem.

e. Standardise the process:Once the root of the problem is identified, and a solution developed, it should be standardised.  The solution should be documented and communicated to other personnel likely to face a similar problem. This helps in saving time and improving productivity.

Continue the tour: Everyday Improvement Techniques and Methods > Everyday Improvement

Everyday improvements through Kaizen involves the application of the following three principles:

       1.  House keeping.       2.  Eliminating muda.       3.  Standardisation.

House keeping:House keeping is one of the main focus areas of Kaizen. House keeping is about keeping the workplace neat and organised. It emphasises that better environment leads to better work, thereby leading to better productivity.

5S is an acknowledged housekeeping technique. The term ‘5-S’ represents five words in Japanese namely, Seiri, Seiton, Seiso, Seiketsu and Shitsuke.  In English these terms mean Sort, Set in order, Shine, Standardise and Sustain.

Page 4: Kaizen Basic

a) Seiri (Sort):  This term suggests that unnecessary items need to be sorted out of the workplace. This will help provide more free space. Some things that can be sorted out are damaged tools, surplus raw material and other items not needed in the normal course of day-to-day work.

b) Seiton (Set in order): Once the workplace has been freed of unnecessary items, the next step is to set in order. This involves creating appropriate storage space for items needed around the workplace. They should be placed such that they can be quickly identified and accessed.       

c) Seiso (Shine): Shine means cleaning the workplace till it is spic and span. A neat workspace has two advantages. One it helps generate a sense of pride in the workmen. Second it helps easily identify indications of malfunction in equipment such as leaks and loose screws among others.

d) Seiketsu (Standardise):  This emphasises developing and maintaining standard work practices. It includes aspects such as visual communication, work procedures, personal and environmental cleanliness and safety among others. It also involves the company’s 5S best practices. Standards are the best way to ensure uniform performance.

e) Shitsuke (Sustain): The important but difficult thing in 5S implementation is sustaining the progress made.  5S cannot be a one- time affair. Often companies start off very well in their implementation of 5S. A walk through the workplace during the early days of 5S implementation will reveal a clean and orderly work environment. However, as days go by there is a tendency to neglect the simple practices and before long the work place becomes as dirty and disorderly as it was earlier. Sustaining 5S requires discipline. This discipline bears in the long run.

Eliminating Muda: The next focus area of Kaizen is the elimination of Muda. In Japanese Muda means waste. Thus any non-value adding activity is called Muda.  Muda is observed in various areas of an organisation.  Elimination of Muda can greatly enhance the productivity of an organisation by minimising operating costs.

The seven broad areas categorised as wastage in any business are:

Resources and Man-hours due to non- value added processes. Resources and man hours in trying to rectify mistakes. Resources and man hours through producing in excess. Resources through holding excess inventory. Resources and man-hours through transportation of excess inventory. Man-hours due to non- value added movements of employees. Man-hours by employees spending time waiting for resources.

These wastes are not limited to manufacturing concerns alone but are found in the service functions too. Kaizen seeks to identify and eliminate all forms of wastes in an organisation. This has to be an ongoing process to be effective.

Standardisation:  Standard work practices are the best way to ensure consistent quality performance. Standards are the simplest, safest and most effective way to perform a work. Kaizen involves developing and maintaining standards within the organisation.

Standards developed need to be documented and communicated effectively. If required, workers should be provided training to apply the standards. During training the advantages of the specific standard practice need to be conveyed to gain better buy in. The organisation should also develop systems to ensure that all concerned adhere to the standard practices. However, room should be given to the worker for experimentation with new ideas to improve on the standard. Standards will thus keep evolving and improving over time.

Organisations are often on the lookout for that one -time break through for improving performance. They are thus constantly in search of the latest technology or the newest innovation. Such measures help in improving performance. However, they normally involve larger investments. Kaizen implementation applying the principles of housekeeping, Muda elimination and Standardisation are effective, simple and involve minimal investment.

Tools > Kaizen Tools

Kaizen is one of the most popular approaches for continuous improvement. During its implementation Kaizen practitioners use various tools, depending on the area of application.

Kaizen can broadly be applied to:

Increase productivity. Improve quality. Reduce Waste. 

Some productivity tools applied in Kaizen implementation are: 

Page 5: Kaizen Basic

SMED. Total Productive Maintenance. Demand Flow Technology. Kanban. 5 S’s.

 Some of the quality tools applied in Kaizen : 

Poka yoke. Standardised Work. Jidoka. Value Stream Mapping.  

Some Kaizen tools for waste reduction: 

7 Wastes. Visual Management.

Single Minute Exchange of Die (SMED)

A Japanese management consultant, Shigeo Shingo in 1969, originally developed SMED.

The SMED technique is by far the best method for achieving really significant reductions in set-up times. Machine setters and operators can easily understand and apply it themselves, after just a few hours of instruction.

The SMED system is a simple but often misleading term as it can be applied to processes other than machine tools that use a die. The focus is on reducing non-value adding set-up time like changing tools or die, clamping and unclamping work and other such non-productive activities. This concept can be of great value in all industries. Set-up and changeover times are broken down into the simple elements and each element is analysed to eliminate, externalise and simplify.

A set-up will normally consist of a number of separate tasks, some of which can only be carried out when the machine or process is stopped. Others could be carried out when the machine or process is in operation.

Shingo called the former ‘internal activities’ and the later ‘external activities’.

Examples of ‘internal’ activities are: 

Removing work from machines, tools dies etc., cleaning down the work surfaces, fixing new tools in place, conducting trial runs and adjusting the machines etc.

Examples of ‘external’ activities are: 

Getting instructions for the next job, procuring material and tools for the next job from the stores, returning tools from the last job to tool stores etc.

There are three stages to the SMED technique application.

The first stage that Shingo developed in 1950 enabled him to reduce the average time for changing set-up on large steel presses from four hours to less than ninety minutes.

The second and third stages, introduced in 1969, led to reducing the same to less than ten minutes.

Since Shingo developed his ideas mainly on steel presses and plastic moulding and extrusion machinery, he called the technique ‘Single Minute Exchange of Dies’ (‘single minute’ meaning less than double figures, i.e. less than ten minutes).

The three stages of the SMED procedure are as follows:

Stage1: Identify internal and external activities; arrange for external activities to be carried out while the machine is working on another batch, instead of during the set-up time.

Stage 2: Convert as many internal activities as possible into external activities, so that they too can be done while the machine is working on another batch.

Stage 3: Continuously strive to improve or eliminate each element of the remaining internal and external activities.

Page 6: Kaizen Basic

It wasn’t until the 1980s that the Western world started applying SMED. Even today only a few manufacturers have realized the tremendous benefits of the process.

Many companies assume that their processes are different and hence do not consider SMED principles.  According to Dr. Shingo, ‘knowing the process we are associated with implies understanding why we do it. If we know that, changing how we do it is simple’.

Reducing set up time till it is economic to manufacture in small batches is a key aim of the SMED technique.

Quality Tools > Total Productive Maintenance (TPM)

Today’s global marketplace is dominated by opportunities and competition. Companies are thus drawing business strategies to deliver reliable products or services to promptly satisfy customer requirements. To be competitive prices of products and services must be low and yet fetch profitable revenues.

Manufacturing companies should aim at reduction and elimination of unnecessary costs associated with material and time wastages.

Thus, a great deal of attention should be paid on the reliability of production lines and their effective functioning. Although most manufacturing operations are automated, maintenance activities depend profoundly on human inputs.

Total Productive Maintenance (TPM) is a productive maintenance programme, which focuses on:

Maximising equipment effectiveness. Establishing a thorough system of Preventive Maintenance (PM) for the equipment’s entire life span. Involving every single employee from top management to shop floor workers. Empowering employees to initiate corrective activities. Implementing TPM.

The steps for implementing TPM are: 

Designing and implementing improvement activities to enhance equipment efficiency. Training equipment operators to be “equipment conscious”, “equipment skilled” and establishing a system of

autonomous maintenance for them to perform· Establishing a planned maintenance system. Conducting training courses to improve operators’ skills. Creating Maintenance Prevention (MP) design and early equipment management. MP design generates equipment

requiring minimal maintenance and early equipment management makes new equipment operational in a short time.

Bringing maintenance into the forefront, TPM focuses on scheduling it as an integral part of the manufacturing process. The goal is to minimise and eventually eliminate emergency and unscheduled maintenance.

Quality Tools > Demand Flow Technology

The world demands a wide range of products especially in the auto, electronics, consumer durables, and computer industry that are custom built and delivered quickly. An organisation that is able to meet as well as stimulate such demand will get a head start that competitors will struggle to catch up with.

John Costanza’s Demand Flow Technology (DFT) concept does just that.

DFT eliminates schedules, forecasts, and finished goods inventory. It uses Raw-In-Progress inventory (RIP) that can be used flexibly to customise the final product. The products are made to order and delivered with no stopgap in between.

With the need for future business to become highly responsive to the varying demands of customers, Costanza felt the existing systems of production would not suffice. He decided to develop a production system that would enable manufacturing systems to quickly respond to changing customer demand.

The system he developed system can be illustrated thus:

A car manufacturing plant needs to build eight cars in a day. The work time available in a day is 8 hours, implying the plant will have to produce one car every hour. The normal line production system takes 32 hours to build a car. Breaking the 32 hours of work into one-hour slots and assigning each piece to a worker and machine can achieve this target. What if some pieces of work need more than an hour while others less than that? The solution is to reallocate workers who complete their tasks earlier, to other tasks in the plant. This will also ensure that work in process inventory for the less time consuming tasks is kept under control.

Page 7: Kaizen Basic

The production cells in DFT are designed to handle a wide range of products, instead of a single or narrow line. The work to be done for making a particular product is first broken into Sequence Of Events (SOE) i.e. a defined number and sequence of operations at a given level of quality. While designing SOE, the non-value adding work is kept at the minimum. The best mix of products that can be produced is determined depending on the production cell. To provide flexibility, DFT incorporates tools to reallocate work, change levels of inventory, and add resources depending on demand variation. The daily product mix and volume are closely tied up to the variations in demand.

Due to this in built flexibility, DFT is better able to handle seasonal and unforeseen fluctuations in demand.

Similarly, unpopular products can be discontinued and new products introduced easily into the production process without much disruption.

In DFT, set up and changeover come under non-value adding operations and hence should be kept at a minimum through continuous improvements. This apart from the fact that DFT cells are designed to accommodate the most likely but broad product families makes the tooling and fixture aspects flexible enough to provide optimal set up and changeover times.

DFT requires, and hence trains personnel in at least three operations of the flow line. Each of the cell personnel should know the operations of the one before and one after their own. This means that even if every alternate employee is taken out from the flow line creating holes, the production will continue though at a slower rate. This provides the plant excellent flexibility in labour management.

In times of low demand, some employees can be taken out from the flow line. Their services can be utilised in other areas, like developing and modifying SOEs, preparing related operation sheets, training, maintenance and so on.

The flow line gets flexed at different locations to adjust the daily variation in demand. The focus of DFT is less on individual efficiency and more on team productivity based on proper staff management and utilisation of resources.

In DFT, operation sheets are prepared, based on the sequence of events for easy reference. Written instructions are kept to a minimum. The operation sheets give graphical and colour coded instructions regarding work to be done and quality levels

to be maintained. These are then placed at every workstation for ready reference.

The instructions also include checking quality of the work done at the previous operation before starting an operation. A similar check of the quality is done on the work completed before forwarding the work piece for the next operation.

Thus DFT is a technique that combines the best features of lean and flexibility in manufacturing.

Quality Tools > Kanban

Global manufacturing enterprises strive hard to develop their manufacturing operations to stay ahead of their competitors. Admittedly, prosperous manufacturing organisations boast of unparalleled success as they meet changing customer demands efficiently.

Complying with changing customer order pattern requires an accurate and precise manufacturing system. An efficient manufacturing system is one that absorbs lesser lead times (from order to delivery).

Manufacturing Systems can be essentially classified as a ‘Pull’ System and a ‘Push’ System.

Most manufacturing organisations use the traditional “Push” manufacturing system, even though it not equipped to handle changing customer demands. Push systems often have excess inventory and extended lead-times from order to delivery. This is because production is scheduled from one stage to the next irrespective of customer demand.

Pull system, on the other hand provides companies flexibility in manufacturing, thereby avoiding excess inventories and large order lead-times.

Working on the principle of operating backwards, it uses signals to generate production events. These signals are triggered by the requirement of finished products at the finished goods warehouse, which are then sent to the preceding manufacturing stage. This stage signals to the component fabrication work centre for necessary components, which in turn, signal the vendor for raw material replenishment.

Kanban, meaning card or marker in Japanese is a more widely known and recognised type of pull system.

The “Kanban Pull” System enables the production line to be altered on the basis of signals received at the end of the supply chain. Thereby, it assists replenishment of finished products, components and raw materials.

This concept was first initiated at the Toyota Automobile Corporation. Hence, it is also referred to as the Toyota Production System.

The Kanban System uses a specifically sized container that cycles back and forth between workstations. Each Kanban card set between departments authorises material to be pulled into the previous department for processing and delivery to the next department. These cards are used to control work-in-progress (WIP) and inventory flows.

Page 8: Kaizen Basic

A Kanban system allows a company to use Just-In-Time (JIT) production and ordering systems, which in turn minimise their inventories while still satisfying customer demands.

Two Kanban cards are utilised in the pull system. These are:

Production Kanban: The primary function of the production Kanban is to release an order to the preceding stage to build the lot size indicated on the card. Production Kanbans are transferred at regular intervals to a collection box. This box acts as an authorisation for the personnel to produce the required parts within a specified time frame. It is then attached to the production Kanban and placed in a warehouse where it awaits transfer to the using department. Production occurs at a department provided the raw material is available and it has a card authorising production. Material is pulled through the system only when it receives the authorisation to move.

Conveyance (withdrawal) Kanban: The main function of a conveyance Kanban is to pass the authorisation for the movement of parts from one stage to another. After getting the parts from the preceding process it moves them to the next process and so on until the process has consumed the last part. The withdrawal Kanban then travels back to the preceding process to get parts thus creating the cycle.

A Kanban Pull System is governed by three simple rules: 

Producing departments do not produce parts unless a production Kanban in the despatch box is authorised for production 

Every container has only one conveyance Kanban and one production Kanban. The numbers of containers are controlled by production management and kept to the minimum possible quantity.

Companies use different card formats as per their requirements. Some variations of the conventional card system are: 

Single card Kanban systems. Metal plates. Ping-pong balls. Quality Tools > 5S Practice

5S is an acknowledged housekeeping technique. The ‘5-S practice’ is now a highly appreciated technique in business. It not only helps to impress customers but also to establish effective quality processes for good services

and products. The term ‘5-S’ represents five words in Japanese namely, Seiri, Seiton, Seiso, Seiketsu and Shitsuke.  In

English these terms mean Sort, Set in order, Shine, Standardise and Sustain.

a) Seiri (Sort): This term suggests that all unnecessary items at the workplace need to be sorted out. This provides sufficient free space. Some things that can be sorted out are damaged tools, surplus raw material and other items not needed in the normal day-to-day work.

b) Seiton (Set in order): Once the workplace has been freed of unnecessary items, the next step is to set in order. This involves creating appropriate storage space for items needed around the workplace. They should be placed such that they can be quickly identified and accessed.       

c) Seiso (Shine): Shine means cleaning the workplace till it is spic and span. A neat workspace has two advantages. One, it helps generate a sense of pride in the workmen. Second, it helps easy identification of malfunctions in equipment such as leaks and loose screws among others.

d) Seiketsu (Standardise):  This emphasises developing and maintaining standard work practices. It includes aspects such as visual communication, work procedures, personal and environmental cleanliness and safety among others. Standardisation also includes the company’s 5S best practices. Standards are the best way to ensure uniform performance.

e) Shitsuke (Sustain): The important but difficult thing in 5S implementation is sustaining the progress made.  5S cannot be a one- time affair. Often companies start off very well in their implementation of 5S. A walk through the workplace during the early days of 5S implementation will reveal a clean and orderly work environment. However, with passage of time, there is a tendency to neglect the simple practices and before long the work place becomes as dirty and disorderly as it was earlier. Sustaining 5S requires discipline. This is what will ensure success.

Quality Tools > Poka-Yoke/Mistake Proofing

Mistakes happen in organisations for many reasons, but almost all of them can be prevented. This though requires effort to identify when problems happen, define root causes, and then take the proper corrective actions. The objective is to prevent, or at least, detect and weed out defects, as early as possible in the process. The use of simple Poka-Yoke mechanisms and other safeguards can prevent mistakes from becoming catastrophic events.

Shigeo Shingo introduced the concept of Poka-Yoke in 1961, when he was an industrial engineer at Toyota Motor

Page 9: Kaizen Basic

Corporation.Poka-Yokes are mechanisms used to mistake-proof an entire process. Ideally, Poka-Yokes ensure that proper conditions exist before actually executing a process step. This prevents defects from occurring in the first place. Where this is not possible, Poka-Yokes perform a detective function, promptly eliminating defects in the process.

Poka-Yoke mechanisms can be in electrical, mechanical, procedural, visual, human, or any other form that prevents incorrect execution of a process step. Poka-Yokes can also be implemented in areas other than production such as sales, order entry, purchasing, or product development where the cost of mistakes is much higher than on the shop floor.

The Centre for Excellence in Operations (CEO) has developed a Poka-Yoke framework to help its clients understand, the various classifications and applications of mistake-proofing mechanisms. Given below is a brief overview of the framework:

Prevention-Based Poka-Yokes:Prevention-based mechanisms sense an abnormality that is about to happen, and then signal the occurrence or halt processing, depending on the severity, frequency or downstream consequences. There are two approaches for prevention-based Poka-Yokes:

Control Method: This method senses a problem and stops a line or process, so that corrective action can take place immediately, thus avoiding serial defect generation. An example of this is an assembly operation wherein, if one of the components is found to be missing before the actual assembly step takes place, the process shuts down automatically. Another example is an incomplete sales order, which cannot be released for production until a true manufacturability configuration is defined.

Warning Method: This method signals the occurrence of a deviation or trend of deviations through an escalating series of buzzers, lights or other warning devices. However, unlike the control method, the warning method does not shut down the process on every occurrence. It is used when a bandwidth of acceptance exists, for a process. An example could be pressurising a vessel or a filling operation, in which the results need not be exactly the same. Although the process continues to run, the Poka-Yoke signals the operator to remove a defect from the line, or make necessary adjustments to keep the process under control.

Detection-Based Poka-Yokes:In many situations, it is not possible or economically feasible to prevent defects. This is particularly so where the capital cost of the Poka-Yoke mechanism, significantly exceeds the cost of prevention. For these situations, defects are detected early in the process, preventing them from flowing to downstream processes and multiplying the cost of non-conformance. The three categories of detection-based Poka-Yokes are as follows:

Contact Method: This method detects any deviation in shape, dimensional characteristics or other specific defects, through mechanisms that are kept in direct contact with the part. A subset of this category is the non-contact method, which performs the same function through devices such as photoelectric cells. An example of this might include a chute that detects and removes upside-down or reversed parts, or an in-line gauge that removes dimensional defects and reroutes them to a defect lockbox.

Fixed Value Method: This method is used in operations, where a set of steps is sequentially performed. The fixed value method employs automatic counters or optical devices and controls the number of moves, rate and length of movement besides other critical operating parameters. In this case, mechanisms are usually built into progressive stamping, welding, Systems Manufacturing Technology (SMT), and automatic insertion equipment. Sometimes this is referred to as odd part out method. Here parts left over after assembly signal a defect. Fixed value also includes critical condition detection (pressure, temperature, current, etc.) through electronic monitoring devices.

Motion Step Method: This method ensures that a process or operator does not mistakenly perform a step that is not part of the normal process. An example of this is colour coding of electronic components on drawings and totes to prevent using mixed or incorrect parts. Another example is a visual to assist customer service representatives, in providing the right literature sets for various products.

The Poka-Yoke philosophy requires a strong foundation in TQM. However, first, organisations must learn to be customer focused.

Second, organisations must promote quality at the source, and ensure proper investment in their people. As a consequence they are truly empowered.

Third, a clear distinction needs to be made between good versus bad quality.

Fourth, organisations must embrace the PSP philosophy: Pre-, Self-, and Post-Inspection at the source.

Finally,, Poka-Yokes require real-time feedback and corrective action. These are the building blocks of an effective Poka-Yoke effort.

Additional Reading:

Page 10: Kaizen Basic

1. Everyday examples of Mistake Proofing:This article gives the everyday examples of mistake proofing.http://www.campbell.berry.edu/faculty/jgrout/everyday

Quality Tools > Standardised Work

In any organisation a work/job is defined as a combination of many inter related activities or work elements.

Standardised work is defined as a work in which the successive activities have been properly structured so that it can be done efficiently.

Standardised work forms the basis for the continuous improvement of a process.

The aim of standardised work is to bring the process under control by reducing variation. This in turn eradicates wastages and increases the productivity.

A standardised work sequence signifies the best practices for the worker to follow in completing his job. Details of best practices are documented and displayed at various departments using standardised work charts.

This helps all the employees working in a particular process to stick to the optimal work sequence. The worker can easily handle problems discovered in the process, at any point of time by referring to the standardised work charts.

Standardised work is built on the three principles of:

Takt time. Work sequence. Standardised in-process stock.

Takt time:Takt time is defined as the time required for producing a unit of output.

Takt time is found out by utilising the equation: Takt time = time available per shift / no of items to be produced based on demand.

For e.g. the time available per shift is 8hrs, and the required number of items to be produced based on demand is 400 per shift. The Takt time is therefore 28800seconds / 400 = 72 seconds.

Takt time depends on customer demand and changes with variations in demand.

Work Sequence: It is the sequence in which the operations have to be performed by the workers in order to complete a work.

The work sequence is displayed at the work place so as to determine the workers conformance to standardised work.

Standard In-Process Stock:In-process stock is defined as the optimum amount of stock necessary to complete a job.

The standard in-process stock is documented and displayed at the workplace on the standardised worksheets.

This helps in reduce inventory wastage.

Two work sheets are used to put across the standardised work to the team members in the production department:

Standardised work analysis sheet. Standardised work combination sheet.

Standardised work analysis sheet:The standardised work analysis sheet provides a graphical representation of the work place.

Sometimes the machinery and equipment that the worker operates are also illustrated.

Information about the three principles of standardised work i.e. takt time, work sequence, standardised in-process stock is provided in the work analysis sheet.

The graphics are produced by hand rather than by a computer emphasising the fact that the worksheets can be modified easily or updated as and when required.

Standardised work combination sheet:In any organisation a work is a combination of many activities, which are inter related. These activities can also be called as

Page 11: Kaizen Basic

work elements. Standardised work combination sheet provides information regarding the work sequence of an operation.

It also graphically conveys the time required for each work element in the form of a bar chart.

The time required for each work element comprises the handwork, machine time and walking that are graphically displayed on the chart.

With the help of this chart the conformance of a worker to standardised work sequence can be easily determined.

Additional Reading:

1. Standardised Work instruction processes.  This article explains Standardised work and some critical sub processes in the form of flowcharts.http://www.steelconsulting.com/Adobe_Documents/Work_instruction.pdf

Quality Tools > Autonomation/Jidoka

Autonomation:An organisation must ensure that the products manufactured in a batch are zero percent defective. Care should also be taken to ensure that the product flow is consistent and within the specified time frame. Therefore, the reliability of the automated processes assumes critical importance in a manufacturing system.

Jidoka (Intelligent Automation as it is popularly known) can be defined as a technique that makes a machine controlled process more dependable in terms of quality. Autonomation should not be mistaken for automation. Autonomation is making the automated operation autonomous i.e. making the automated (machine controlled) manufacturing equipment “Intelligent”. It involves the “empowering” of the automated machines with human discretion so as to differentiate products that conform to quality from those that do not. This ensures the reliability of the process. ‘Do’ in Jidoka is a Japanese word that signifies a human character.

Autonomation can also be viewed as the technique of stopping a manufacturing process when an abnormality crops up. This is done either manually or automatically. An abnormality is any form of variation from the specifications.

Autonomation derives its origin from the Toyota Production System.

Autonomation or Jidoka along with the Just in Time concept is the cornerstone of Toyota Production System.

The Toyota Power loom:The Toyota Power loom is one instance, where the Jidoka concept was successfully incorporated.

Before introducing the Jidoka concept in the power loom, the shuttlecocks that were a part of the production process would cause defects in the yarn being manufactured. Some of the shuttlecocks would stick to the yarn thereby rendering the cloth defective. Prior to automation, the weaver could spot this problem in the loom and immediately stop the process for rectification. However, the automated machines in the power looms would operate continuously irrespective of the defects caused during the manufacturing process. This caused a steep increase in the wastage, cost of production, and customer dissatisfaction.

As a part of its Jidoka approach, the Toyota loom put in place a stopper that sends alarm signals each time the shuttlecocks stuck to the cloth.  This in turn helped stop the process flow and set right any variations in the process. The result was manufacture of high quality yarn.

Jidoka thus implies making the process autonomous enough 

To operate on its own, To identify abnormalities cropping up, and To deal with those abnormalities.

Quality Tools > Value Stream Mapping

Most management approaches focus on a specific area for achieving functional excellence. The result is excellence in a specific few areas only.

Value Management is viewed as an approach to overcoming this problem.

Page 12: Kaizen Basic

Value Management is a style of management particularly dedicated to motivating people, developing skills and promoting synergies and innovation. It aims at maximising an organisation’s overall performance.

Value Management is different from traditional management approaches, in that it simultaneously integrates characteristics normally not found within a single management system.

One of the important methodologies in Value Management is Value stream mapping.

A value stream is a collection of all the activities required to bring a product through the main flow i.e. from raw materials to delivery to the customer. A value stream refers to the specific areas and activities of the firm that actually add value to a particular product or service. The objective is to identify and get rid of the waste in the process (waste being any activity that does not add value to the final product)

Identification of the value stream reveals the wastes in a company. These wastes may be in the form of unnecessary steps, backtracking, or waiting time as products move from one department to another or from one company to another.

Therefore, it is crucial to first identify the entire value stream for every product and product family. All departments and supply chain partners should together create a channel to eliminate all wastes. Value stream mapping is crucial here.

The internal manufacturing operations in a company can be broadly categorised as. 

Non-Value adding operations: These activities are unnecessary wastes and ought to be eliminated completely. These include waiting time, unnecessary handling of products and piling up intermediate inventory. 

Necessary but non-value adding: Though these activities are a waste they are required to be performed. Such activities include walking long distances to pick up parts, unpacking of products delivered in the warehouse and transferring of tools from one machine to another. 

Value adding: Activities that involve the conversion of raw materials or intermediate products to finished products fall in this category of operations. Activities such as sub-assembly of parts, turning raw material, painting a product body are typical examples.

Operations classified thus facilitate easy identification of waste.

A map is essential before any important journey. But before reaching the final destination one should know where he is presently. In short, one needs a “current state map”. To know what should be achieved in the future one needs a “future state map”. Current and final state maps are the starting points to mapping the value stream.

Value Stream Mapping has been recognised as an important tool for effectively designing and introducing lean production systems. It also facilitates shorter lead times through the value chain. Serving as blueprints for lean manufacturing implementation, seven key tools for the implementation of value stream mapping have been identified. They are: 

Process activity mapping. Supply chain response mapping. Quality filter mapping. Production variety funnel. Demand amplification mapping. Decision point analysis. Physical structure mapping.

Process Activity Mapping [PAM] :With its origins in industrial engineering PAM aims to establish a map of the processes under study. First, a primary analysis of a process is done. This is followed by a detailed analysis. All resources required in each process are recorded.

The processes can first be categorised into activity types such as processing, transportation, inspection and storage. Then the machine or area used for each of the activity types is noted. A flow chart of the activity type being undertaken can then be made. This includes details like distance moved, time taken and the number of people involved. Using this flow chart and applying techniques such as 5 Whys (progressively asking why 5 times) helps eliminate non-value adding activities.

A simplification, sequence change or a combination of activities can take place during this waste elimination. Various alternatives for improvement can be mapped before choosing the best one for implementation.

Supply Chain Response Mapping:This tool originated from the time compression and logistics movement. It was originally used in a textile supply chain setting. The tool aims at a ‘time based process mapping’. The critical lead-time constraints are represented in a simple diagram or simple graph. The cumulative lead-time can be shown on the x-axis and the number of days of material held in the system on the y-axis. The total response time can then be calculated. Once this is done individual lead times and inventory amounts can be improved.

Production Variety Funnel:

Page 13: Kaizen Basic

Production variety funnel is similar to IVAT analysis and helps one understand how products are produced. IVAT analysis is used to view the internal operations in companies consisting of activities that confirm to I, V, A or T shapes.

‘I’ plants are unidirectional, regular production of multiple items as in a chemical plant. In a ‘V’ plant a limited number of raw materials are processed into a large number of finished products in a generally diverging pattern. Divergence means that the relatively few raw materials diverge into a greater number of intermediate items and those intermediate items diverge into still more items and so on until the final process or assembly. Textile and metal fabrication are examples of V plants.

Few end items and many raw material and parts items are the main characteristics of an ‘A’ plant. Unlike the V plant, the flow of materials and parts “converge” as they approach final assembly. Convergence means that fabricated parts converge into a subassembly, which, in turn, converge into another subassembly and so on until final assembly. Aerospace and major assembly industries are typical examples of ‘A’ plants.

‘T’ plants are characterised by a large number of end items made from a relatively few common parts. These plants are similar to “A” plants except that the process is dominated by divergences almost all occurring at or near the final assembly point. Typical examples are the electronics and household appliance industries.

Such a description using the production variety funnel allows the person responsible for mapping to recognise how the firm or the supply chain functions. It also helps in targeting the point to reduce inventory and make changes to the processing of products.

Quality Filter Mapping: Quality filter mapping helps in identifying quality problems. The quality filter map identifies three different types of quality defects that occur in the supply chain. Typically they are: 

Product defects: These defects are produced in products and passed onto customers. They are not identified in the in-line or end of line inspections.

Service defects: Defects associated with difficulty to a customer and not related to the product itself or production errors are service defects. The associated level of service provided causes such defects. Examples include unsuitable delivery (late or early) or incorrect documentation. 

Internal scrap: These defects are identified in the inline or end of line inspections.

Once identified these defects are mapped along the supply chain. This helps in identifying where they occur and thereby identify problems, inefficiencies and wasted effort to improve upon them.

Demand Amplification Mapping:Demand amplification mapping helps examine the increase in demand variability as one travels up the supply chain. This mapping tool is used to illustrate how demand shifts along the supply chain in varying lengths of time. The information can be used for decision-making and analysis while redesigning the value stream. It also serves as basis for managing regular demand in one manner and exceptional demand in another. Thereby it minimises variations.

Decision Point Analysis:Decision point is the point along the supply chain where the real demand-pull gives way to forecast driven push. At this point products are made according to forecast demand in place of the actual demand. With knowledge of this point, all processes that function in both directions (upstream and downstream) can be aligned as per the relevant approach adopted, either pull or push. Various alternative scenarios can be evaluated by shifting this point along the value stream.

Physical Structure Mapping:This mapping tool gives a broad overview of the value stream at an industry level. What the industry looks like and areas where development should take place are some of the questions this tool helps answer. Two sets of diagrams can be used in the process:

Volume structure: This diagram illustrates how the industry is structured. It can depict the various tiers that exist in the supply and the distribution chain. Thus it helps in capturing all the firms in a particular area of the value stream.

Cost structure: It is similar to the volume structure diagram but for the linkage to the value/cost adding process, in place of the number of firms involved.

The information derived from this tool serves as the basis for improving the value stream map. The process selected is the input and the improved value stream map the output.

Allocation of appropriate weightings that determine the usefulness of each tool to identify waste help select The Value Stream Mapping tools. These weightings depend on the industry being considered, with some wastes being more relevant in certain industries. However, used together these seven tools can provide an effective framework for identifying and eliminating wastes.

Quality Tools > 7 Wastes

Page 14: Kaizen Basic

The objective is to identify and get rid of the waste in the process (waste being any activity that does not add value to the final product). Conducting a value stream map can do this.

A value stream map is a collection of all the activities required to bring a product through the main flow i.e. from raw material to delivery to the customer. It refers to the specific parts of the firm that actually add value to a particular product or service.

The essence of mapping the value stream is to eliminate the seven commonly accepted wastes out of the manufacturing operations. They are:

Waste from over-production, e.g. making a batch of 100 when they had only orders for 50, so that the balance had to go into stock; or making a batch of 52, instead of 50, in case there were rejects. Both tie up production facilities longer than necessary and excess production may eventually have to be scrapped if it can’t be sold.

Waste of waiting time, e.g. allowing queues to build up between operations, resulting in longer lead times and higher work-in-progress.

Transportation waste, e.g. the time and effort spent in moving products around the factory as a result of poor layout. 

Processing waste: e.g. off cuts of raw materials. Inventory waste: Inventory does not add value. Not only does it cost money to run a store, but also its costs in

terms of the interest that has to be paid on the money tied up in stock. In many cases production of customers orders would have been delayed as a result of production resources being tied up in production items for stock. 

Waste of motion: e.g. as a result of inefficient layout of tools and materials around the workplace.  Waste from production defects: This is a result of not getting it right the first time. Quality Tools > Visual Management How important is communication in the industrial scenario? Perhaps most important! Operations within any

organisation involve vital transfer of information. In short, communication dictates organisational performance. Communication is all about a sender intending to reveal specific information to a receiver. Researchers believe

that effective communication can influence human behaviour and performance. An efficient communication mode must therefore be conclusive, comprehensive and clear. According to industrial gurus, organisations that strive to attain world-class status must have communications systems containing these three characteristics.  

However, in this era of cutthroat competition, communications systems must also be economical. Visual communication is one such system that is both efficient and cost effective. It includes signs, symbols, charts or even physical models that convey a message.

Visual communication helps organisations convey messages/information with minimum fuss and maximum results. Sadly though, for most companies visual communication is about a logo atop a letterhead or a building

According to industrial gurus entering an organisation without a visual image is like being asked to find the door in a dark room. Similarly, an organisation that fails to provide visual signs of what each unit does is synonymous to one operating blindfolded.

Visual communication has always been a proven asset in many fields.  Researchers believe that visual communication catches human imagination more strongly than any other form of communication. Statistics support this fact:

1. Sight - Vision - 75% of human imagination2. Hearing - Audible sounds - 13 %3. Feeling – Physical  - 6%4. Smell – Olfactory  - 3% and5. Taste – Gustatory – 3%

The role of visual communication stretches far beyond insignias within facilities. In world-class organisations, visual communication is a part of top management strategy. It enhances plant and frontline personnel performance.

Visual communications is extremely efficient because it is characteristically universal and rich in meaning. Visual signs convey the same meaning to one and all and are hence seldom misinterpreted.

Furthermore, visual communication neither interferes with another functional system nor allows any interference.  Thus there is no disturbance from or of neighbouring systems. Other communication modes may not have all these advantages

Visual communication is often misinterpreted as being advantageous only to the manufacturing facility where it is installed. In reality, it is an opportunity that can be used to enhance, the entire organisation’s reputation amongst customers.

Organisations using visual communication will earn the appreciation of not just factory workers but also external customers. For most customers visual communication is a true reflection of quality with safety being given the highest priority. Today, safety is as important to customers as is value for money. So ensuring safe working conditions necessitates providing value for money to the customer.

Visual communication is easier understood than other forms of communication. Researchers believe that visual signs are more thought provoking than words. This is because they have a higher influence on neuron interconnections, present in the visual cortex of the human brain. Hence, the likelihood of conveying the desired message to the concerned is higher. 

Visual communication does not mean logos. It encompasses the use of visual modes to communicate information. Few good examples of visual tools are control charts and storyboards. These visual/graphical performance

Page 15: Kaizen Basic

curves/charts should be displayed at the facility as they help employees understand equipment performance and work accordingly.

Tips > The Wet Blanket List

Kaizen is easier preached than practised. This is because though the concept is simple, it faces several roadblocks during the day-to-day implementation. Superiors often turn down improvement suggestions made by employees. They ask questions like, why should we change? or is the present process not sufficient? 

Referred to as ‘wet blankets’ these objections reduce employee morale and kill their enthusiasm for making improvements.

The wet blankets that superiors are often guilty of:

1. I actually have something else to work on right now. Can we look at this idea sometime later? 2. It’s a nice idea but I don’t think our company is ready for it now. 3. We do not have a provision for this in our budget. 4. Sounds good on paper but I don’t think it will really work. 5. I guess you should be busy with your work. 6. This isn’t in line with our company’s policy. 7. Why bother about something that isn’t part of our job. 8. Are you unhappy about your job? 9. There is nothing great about this idea 10. I have come across innumerable such ideas during my career. 11. There is too much of risk involved and I do not want to take responsibility. 12. I am sure you can think of something better.

Continue the tour:Tips For The Kaizen Team

Tips > Tips For The Kaizen Team

Developing a positive approach, fostering innovation and encouraging communication are critical to the success of Kaizen.

Kaizen is normally implemented through teams. Kaizen teams normally consist of personnel across different functions. The team is assigned a particular area, process or problem to apply Kaizen for making improvements. Some tips for the Kaizen team are listed below:   

1) Keep questioning the conventional methods:Employees feel comfortable with the process they are used to, even if it is faulty. They get acquainted with the process and hence are often reluctant to change. Very few employees have an attitude of constantly questioning the way things are done and seeking improvements. This questioning attitude is however essential for making continual improvements.

‘Is there a simpler way of doing things?’ and ‘What does the customer really want?’ are two questions that Kaizen team members can constantly ask themselves for making improvement.  

2) Get to know the problem first hand:  Before implementing Kaizen on any process, the Kaizen team should first go to the work place where the improvement is sought. They should observe the process first hand and identify the issues faced. Thereby, they understand the root causes and develop better solutions.  

3) Blame the process not the person:  Kaizen teams assigned for making improvements in a particular process should avoid blaming workers for any failure or issues in the production cycle. Instead they need to think of why a particular failure happened rather than thinking of who is the cause for it. Focus should be on the process rather than the person.

Page 16: Kaizen Basic

4) A bird in hand is worth two in the bush:Solution to a problem need not always be perfect. The Kaizen team cannot expect to make progress if it is waiting for the perfect solution before applying it. It is better to apply the best solution in hand and seek to improve on it eventually.  

5) A failure is not the end of the world: An initiative like Kaizen is bound to have its share of mistakes and failures. Kaizen teams should not get discouraged if any of their improvement solutions fail to produce results. It is more important to learn from mistakes and move on.

6) Aim for minimum investment:Kaizen involves the application of common sense and cost effective techniques. Hence, the Kaizen team should pursue ideas that involve minimal investment.

7) Problems are but opportunities for improvement: “Necessity is the mother of Invention”. Tough situations often bring out the best solutions. Therefore, every new problem should be seen as an opportunity for improvement and embarked upon as such.

8) Keep asking ‘Why’:Kaizen teams should never be satisfied with the seemingly obvious. A solution to a problem should address its root cause to be effective. Often there could be more than one root cause to a problem. Asking why repeatedly is a simple but effective way to arrive at root causes and their relationships.

9) Look at issues from all perspectives:Before arriving at a solution to a problem the Kaizen team should view the issue from all perspectives. Seeking inputs from all people concerned - directly or indirectly - is one good approach.

The six-hat thinking technique is another good approach to analysing an issue from different perspectives. This technique involves thinking from different perspectives regarding a single issue. Based on the colour of the hat the thinker wears he thinks in modes such as facts and figure, the positives, the negatives, feelings and intuition, creative ideas, and facilitation mode. This approach helps bring out all possible aspects related to an issue.

10) There is no end to Kaizen: Complacency is the archrival of Kaizen. If a company is satisfied with its performance then it finds no motivation to make improvements. Kaizen is a restless state of continuous improvement needed to survive unrelenting competition. In that sense Kaizen implementation in an organisation should never end.

Continue the tour:Tips For Kaizen Team Leaders

Tips > Tips For Kaizen Team Leaders

Some tips for kaizen team leaders:

1.Display enthusiasm: Passion, dedication and creativity are the three essential qualities of a Kaizen team leader. A leader should generate enough interest in his team members. Team members’ enthusiasm depends on how the leader approaches Kaizen.

2. Maintain focus: It is easy for the Kaizen team to lose focus over a period of time. The reasons can vary from work related distractions to disappointments during Kaizen implementation. The Kaizen team leader should attempt to sustain team members’ interest. Setting meaningful goals and devising plans to achieve these goals in consultation with all team members is one way to ensure their involvement.

Page 17: Kaizen Basic

3.Keep the members occupied:After developing a plan each team member should be assigned a specific task and informed of the target dates. The leader should ensure that discussions do not end up in a meaningless deadlock.

4.Gather information through standard techniques:A leader should be aware of the kind of data collection and analysis tools that will be required for their Kaizen initiative.He should also be in a position to direct his team members in the use of these tools.

The leader should document progress in terms of metrics and also collect evidence of improvements made. Preferably the evidence should be photographed. This can serve as a visible proof of the effectiveness of the Kaizen initiative.

5. Facilitate meetings for better idea generation:The leader plays a critical role during team meetings. He needs to motivate every member to contribute in terms of ideas. He also needs to facilitate discussions such that meaningful ideas are taken to their logical end.

6.Ensure availability of resources:Many members get disappointed when resources are not made available to them in time. A leader should take the responsibility of ensuring availability of the necessary resources. He should act as a link between the support functions and the team. The leader should identify in advance the resources his team would need in advance, prioritise them and make them available in time.

7. Keep the management informed about the team’s progress: Generally, the management may not be aware of the changing requirements of the team. Hence, it is necessary for the leader to regularly report the activities of the team and progress made in the recent past. These briefing sessions need not be too long (not more than 10 to 20 minutes). During these sessions the leader should concentrate more on the areas where the team requires management support.

8. Use Sensei to team’s advantage: Sensei is a Japanese word for an instructor or a teacher. In a Kaizen implementation the consultant/trainer/ champion normally plays the role of the Sensei. 

A leader should be able to make use of the Sensei not just for training but also for receiving feedback on the team’s progress. He should also be able to leverage the Sensei’s influence with the management to resolve pending issues like resource allocation. 

9. Sustain the progress made:Making improvements is half the work accomplished. The next half is sustaining the improvements made. Without proper follow up the progress made could be lost due to complacency. The leader should ensure that the improvements made are continued. 

10.Make Kaizen enjoyable:Members should enjoy being a part of the Kaizen team.  Allocating members the tasks they feel comfortable with and maintaining daily humour to keep them in good spirit are possible solutions.  

Best Practices > Through the 'Kaizen Eye' !

Making improvments may not be a very difficult task, but sustaining them is. A look at how Kaizen can come to the rescue!

In the late 1980s, manufacturing underwent several changes and new ideas emerged. Companies worked extensively to reduce time-to-market, improve quality and reduce costs.

Hill-Rom is one of the two main business units of Hillenbrand Industries in the US. A leader in the healthcare community worldwide, Hill-Rom provides innovative patient care systems and solutions including vital hospital equipment. Given the highly competitive and technologically advanced market it operated in, the company attempted to reduce its cycle times in 1992 to maintain leadership.

With the help of a consultant who evaluated the company’s core business processes, Hill-Rom identified four core processes and established cross-functional teams to improve them. The teams analysed the processes, suggested changes and reviewed the changes for a year. Hill-Rom believed that the improved processes were working perfectly and disbanded the four teams in 1993. However, by 1994, the company found results from the improved processes deteriorating. The initial appearance of good results had been a consequence of measuring the processes and not due to fundamental changes introduced.

Hill-Rom then called in another consultant from Japan, who taught its employees the principles of Kaizen and the Toyota Production System (TPS).

Page 18: Kaizen Basic

Upon dropping the services of the second consultant in late 1995, Hill-Rom observed that the improvements also stopped. The principles and ideas imparted by the consultant worked as long as he guided the employees, who had not internalised the ideas.

In 1996, the CEO, a strong advocate of Kaizen and lean principles called for a meeting of key Hill-Rom managers. Initially, they were not enthusiastic, having already used similar methods twice without long-term success.

However, the CEO’s approach at the meeting changed everything. Later referred to by the participants as the ‘significant emotional event’, it was through this meeting that the CEO clearly explained his commitment to permanent improvement. He also stressed the need for employees to be committed to making permanent improvements, not just ‘quick fix’ solutions. 

Subsequently, managers at Hill-Rom employed five Hillenbrand Guiding Principles to begin continuous improvement activities for the third time in the company.

Total customer satisfaction. Niche market leadership. Manage for cash flow. Manage for individual work. Continuous improvement.

The company planned to use Kaizen principles as a system for continuous improvement and to eliminate wastes. Hill-Rom justified the Kaizen approach as it supported the company’s strategic objectives. It had an action orientation, accelerated improvement and learning (through rapid Plan-Do-Check-Act) and gave positive results.

In any manufacturing company, apart from defective products, wastes are observed in various areas as in inventories, over production, motion, processing, transportation and waiting. Hill-Rom believed that wastes were present also in the intangible area of untapped creativity.

For this, the work of employees within the company was considered to comprise value-added and non-value added work. Hill-Rom defined value added work as activities that transform material or information to meet customer requirements, from the customer’s point of view. Everything else was non-value-added work. The company estimated its value-added activity to be around 3%.

Of course, no company can ever get rid of all non-value-added work, since it comes along with value-adding activities. According to Hill-Rom, a typical company may have value-added (VA) work to non-value-added (NVA) work in the range of 25% to 75%. After a typical improvement initiative, the percentage of NVA reduces to about 60%. But this typical improvement can just be a minor one.

As per Hill-Rom, a Kaizen waste reduction effort is a major improvement, which can lead to reduction in NVA by as much as 80%. To reduce wastes, Hill-Rom used the concept of Just-In-Time (JIT) production whose principles are:

Establish a ‘takt time’ . Increase production flow. Incorporate pull production.

‘Takt time’ is the rate of customer demand. Hill-Rom‘s aim was to maintain the right takt time. A production rate faster than the established takt time is considered a waste just as one slower than the established takt time.

Hill-Rom switched to ‘pull production’ and made extensive use of visual controls on the shop floor to set the ‘one-piece’ production flow. The company found such visual controls more effective for controlling production flow.

Typical Kaizen events at Hill-Rom lasted for five days in a week, with cross-functional teams having authority to make changes. A macro level Kaizen event at Hill-Rom was as follows:

First, processes to be improved were identified following which a guidance team comprising senior management members filtered a vital few. This would ensure that Kaizen events supported Hoshin objectives.

The objective of the Kaizen event was set. These were stretch objectives aiming at a minimum improvement of 20%. Often the company obtained 50% improvements at the end of the events.

About 10-12 employees formed the Kaizen team. One third of the team members were employees currently in charge of the process to be improved while one third were stakeholders in the process like managers, engineers

Page 19: Kaizen Basic

and accountants. The rest of the team comprised employees who were not directly associated with and had no idea about the process to be improved. They were involved to provide a new perspective. It was observed that the best ideas for improvement came from them.

Every Kaizen event involved four weeks of preparation time. The actual event lasted for a week while post-event work took nearly four weeks.

On the first day of the Kaizen event, team members were trained on Kaizen and lean production principles, irrespective of their previous experiences. Brainstorming sessions were conducted to identify further improvements. On the second day, the ‘as-is’ process was studied and the first round of improvements implemented. On the third day, the impact of changes on improvement targets was assessed and further changes introduced. On day four, the changed processes were observed for stability. The last day of the Kaizen event saw a final presentation and celebration of results among all employees. 

Following the event, there was close follow-up work, which included ensuring that the improved processes performed as planned and sustained results along with other follow-up activities.

Results from one such typical Kaizen event at Hill-Rom is tabulated below:

 Before  Goal  ResultProductivity(no: of items)

 72  50%  141(100%)

Cycle time  366 seconds  50%  181 sec (100%)WIP Inventory(no: of items)

 10  -  1 (90%)

Floor space (sft)  709  -  165 (77%)

Hill-Rom says that all its Kaizen events are quick and crude, not slow and elegant. It has now become the company’s standard of thinking and working. According to Hill-Rom, its ‘Kaizen eye’ helps it to constantly attack and eliminate waste from the system. This enables greater value-addition and better products at a faster pace.

Continue: Putting The Brakes on Poor Quality The Kaizen Way

Best Practices > Putting The Brakes On Poor Quality The Kaizen Way

Continental Teves AG & Co’s plant manager aimed at continuous improvement to ensure the highest quality and be the lowest cost producer of brake assemblies in the world.

The Continental Teves AG & Co (CT) has its Braking Systems plant located at Morganton in the US. The plant operations are dedicated to the assembly of more than 80 different types of brake systems.

The plant was built exclusively to assemble the Mk. 20 ABS brakes. Its major customers are Daimler Chrysler and Ford. The other customers are Nissan, Honda, Toyota and Mitsubishi. Although these customers use the Mk. 20 ABS Brakes, there are more than 80 different types. The variations are in the form of different valves, pistons, control units, motors etc. With a staff strength of 720, CT ‘s annual production touches almost three million brake systems.

The plant manager’s goal is to make the company the ‘highest quality and lowest cost’ producer of electronic braking systems in the world. The plant’s Kaizen activities include customer driven improvements, value added activities, total productive maintenance and complete employee involvement.

CT’s plant manager aimed at continuous improvement, which would be of the highest quality and yet be the lowest cost producer of brake assemblies in the world. The implementation of Kaizen was an important step in this endeavour. The company first identified areas where improvements are required and then appointed teams consisting of staff members called  “Kaizen Improvement Teams” (KIT). One such team was formed to focus on material wastage and it brought in substantial improvements.

The KIT team for material waste reduction was formed to reduce material wastes by 10%. The team consisted of technicians, operators, supervisors and engineers who met on a weekly basis to review progress.

The team identified that one of the main causes for scrap generation was the damaged aluminium valve blocks. The aluminium valve blocks had a safety critical nature and once dropped, they were unfit for use. The slippery nature of the blocks was the main cause for their being dropped.

A simple and effective way to prevent dropping was by providing workers handling these parts with cloth gloves. In addition, visual display charts were also put up in the assembly areas. Interacting with workers helped in identifying and

Page 20: Kaizen Basic

solving process defects before rejects were produced. All the above activities helped CT to reduce material wastage by 50%.

Another important aspect was the involvement of employees in the improvement programmes. CT introduced training programmes for its staff. Training imparted new and better methods of production. The workers who had simple skills of hydraulics were trained on Statistical Process Control (SPC) methods. The newly recruited members were also given training over a period of two weeks. They had to stay at a college for a week and the next week the training was conducted in the factory.

CT found that the employees focussed more on the production capacity and also examined bottlenecks. The company had a prevailing production rate of 4000 to 4500 units per assembly line in a single shift. Plant workers concluded that by modifying the equipment, the production could be increased to 6000 to 7000 units per line per shift.

Regular communications at all levels was crucial in CT’s improvement programmes. Meetings were held on a daily and monthly basis to review the financial performance and other details. Visual management tools were displayed throughout the factory. This included scoreboards providing performance details of assembly lines like overall equipment effectiveness These scoreboards are updated every 30 seconds.

The company also rotated its workers position on an hourly basis. This gave them an opportunity to improve their skills and also to interact with other people. It also reduced the possibility of repetitive stress injuries caused by doing the same work every hour, every day.

To remain competitive companies need to focus on continuous improvement through initiatives such as Kaizen. Improving productivity without increasing capital equipment while maintaining quality requires employee involvement at all levels. The company should provide complete support to the employees and help them contribute their best by providing excellent work atmosphere, adequate training and good compensation. 

Continue:Kaizen and Plant Optimisation   

Best Practices > Kaizen And Plant Optimisation

Many companies believe that Kaizen is a slow, incremental step function, but at Black and Decker it was projected as a ‘Breakthrough event’.

Black and Decker (B&D) is a power toolmaker in the USA. It’s Spennymoor plant produces 14 million tools annually with 2000 monthly product variations which gives the company unlimited opportunities for process improvements. B&D adopted Kaizen under the guidance of the TBM consulting group. The Kaizen programme was a major breakthrough that generated enormous savings and improved employee morale and teamwork. Impressed by this, B&D then held a week- long Kaizen demonstrator event to spread the message among senior managers from Rolls Royce, Alstom, Polaroid and other companies.

In the past, people in the manufacturing industry concentrated on increasing automation. This involved high investments, inventory stocking and space wastage. The Kaizen programme aimed to concentrate on specific process areas, analyse and rebuild them by reducing wastes to achieve flexible, Just In Time manufacture.

B&D took up process improvement and aimed at plant optimisation using Kaizen under the guidance of TBM Consulting Group. TBM emphasises the principle of ‘Lean manufacturing’ in its Kaizen approach. It focuses on identifying and minimising non-value adding activities. Many companies believe that Kaizen is a slow, incremental step function, but TBM consultants projected it as a ‘Breakthrough event’. According to TBM, implementing a typical Kaizen event involves only a three-week programme.

In the first week, a Kaizen team is formed consisting of production operators, supervisors, quality engineers and a few people from other departments. The leader of this team collects information, drawings and layouts of the assembly line.

In the beginning of the second week, after a six-hour training on basic Kaizen concepts, the team reviews the entire production process. This includes flow of material, operation and market demand for the product. The team then determines the Takt time (Takt is a German word used to specify the pace of production by a unit.). It then identifies areas to be improved and also the waste and non-value adding operations. The line is then disconnected and reconfigured to enable flexible manufacturing.

Analysis of results is undertaken in the third week. It is then standardised to create the new working process. After holding more than 50 such Kaizen events, B&D earned substantial savings. Since all its employees were involved in the improvement programme, it gave them an opportunity to improve their skills. This brought in teamwork and responsibility among employees.

Although in its initial stages, Kaizen focused on finished product assembly lines that are more labour intensive; it can also be applied in areas where machines predominate. These include component manufacturing, injection moulding, and motors.

Page 21: Kaizen Basic

Continuous improvement in any process requires continuous change. To remain competitive, companies have to take up the challenge of innovation. Although some companies are reluctant to break away and change from conventional manufacturing practices, the concept of Kaizen is catching up. It has resulted in achieving maximum efficiency and quality, while minimising inventory and wastes.

Adopting Kaizen has enabled many companies to continuously improve their services and meet customer expectations of high quality, low cost and consistent, Just In Time delivery.  

Case Studies > A Five-Day KAIZEN Improves Profits

A key prerequisite to kaizen is no one is laid off as a result of process improvements made.

Form teams with your line personnel—allow them to move your machines and fixtures; give them authority to make process decisions. This is KAIZEN! Kaizen is a culture of sustained continuous improvement focusing on eliminating waste in all systems and processes of an organisation. The Kaizen strategy begins and ends with people. An involved leadership guides people to continuously improve their ability to meet expectations of high quality, low cost and on-time delivery .

Lantech Inc. a Kentucky based wrapping machine company has turned itself around – as a result of applying Kaizen principles, in its plan. In 1989 Lantech Inc. saw a host of competitors, poised to threaten its position. The company knew that it needed to lower its costs, to survive. Kaizen was the answer to its problem.

The key concept behind KAIZEN is that no worker is laid off as a result of process improvements. Lantech Inc. conducted dozens of internal Kaizens covering production processes and activities.

Kaizen teams were formed from line personnel themselves. The teams completed the job of instituting plant floor improvements within five days. Some of the key changes done by Kaizen teams on the shop floor were:

After observing one worker stop six times during a task cycle to use a tape measure to measure and cut cable, the team attached standard cable length marks to the workbench.  The operator now only needed to lay the cable along the marks and cut to the desired length. Cycle time saved was: 3min.

A roll-carriage assembler made upto 75 trips per cycle from his workbench to various locations around the fixture that held the 175-lb roll carriage. The team developed a fixture that swivelled the roll carriage to any desired any position. Total cycle time saved was: 12.5 min.

Improvements promised not only to save time but also worker fatigue. One worker had used a mallet to pound away at rivets to seat them in a plastic strip for the limit-switch mount.  Team members showed her the hand-press tool that they had bolted to her bench. Then they showed how she could simply position the fasteners on the strip and pull down the handle to seat them. She was grateful to them. Cycle time saved was: 6 min.

By virtue of performing several Kaizens, Lantech changed assembling machines from modular parts in inventory, to a total custom-order process. It as a consequence cut order processing time from about 5 weeks to 14 hours.  Now it carries no inventory and these measures have slashed costs. Sales have gone up several times, with less floor space.

Productivity in Lantech went from 50 employees turning out 8 wrapping machines per day to 20 people turning out 14 machines per day. Importantly no employee was either added or removed during this time.

Lantech willingly endured a five-day process improvement team blitz, because the five-day approach moved faster than the company’s bureaucracy could step in and stop progress. Kaizen improvements take place quickly, before vested interests can convince the change agents in a company that they need not be done. Even physical changes, such as moving machinery happen quickly.  The idea is not to debate which of the two ideas is the better but to choose one quickly and implement it. That’s how Lantech made continuous incremental improvements.  Also, Kaizen teams have no capital budgets and so they are forced to make changes that do not cost money. They instead utilise their practical experience and creativity for making improvements.

In the Kaizen system, displaced workers get better jobs. For instance, if a three -person operation is reduced to two people, the smartest or most experienced worker is the one who leaves the operation and becomes part of the resource team.  The line worker now works on team projects like instituting more plant-floor improvements, besides carrying out improvements given by the Kaizen team.

This process is not easy on the ego of managers. Managers have to listen and trust their line workers in a Kaizen system.  Those unable to adjust to this should opt out and find another place to work. Among the line workers, however, Lantech Inc. had a very low turnover.

Kaizen involves continuous, step-by-step improvements in every manufacturing activity, bringing simultaneous increase in productivity.

Page 22: Kaizen Basic

Continue:Scartching The Tip Of The Iceberg

Case Studies > Scratching The Tip Of The Iceberg!

Towards Innovative Ideas.

Early in August 2000, TRW Chassis Systems decided to implement a Kaizen event at its plant manufacturing Anti-lock Brake Systems (ABS) located at Fenton in the US.

The management brought in a Japanese expert to motivate and guide their employees to make continuous improvements. The expert issued a mandate asking employees to solve some of the plant’s most pressing problems in just five days, without stopping production. Although an arduous task, the employees took up the challenge under the guidance of the expert.

Drawing from vast and varied experience!The Japanese expert, who was brought into TRW systems to manage the Kaizen event, had visited a number of manufacturing facilities across a number of industries, ranging from aerospace (Boeing) to appliances (Maytag). He did not solve any of his client’s production problems himself. Instead, he aimed to teach plant personnel the benefits of doing things the lean way. He only served as a guide.

The expert first briefed the plant personnel at TRW on the most basic principles of lean, namely the 5-S practice. The English equivalents of 5-S are -Organisation, Neatness, Cleaning, Standardisation and Discipline. The expert then asked the employees to create action teams to solve the most pressing problems faced by the plant without hindering production.

Further, he instructed action teams to take immediate action and document whatever they observed and implemented, rather than speculate and make elaborate plans for future. Managers and engineers were asked to actually work on the production line to understand problems instead of merely going around the plant.

Ready for action!A number of Kaizen action teams were formed at TRW and the activities of one of the teams are discussed here. This team, decided to follow a basic strategy of starting each morning of the Kaizen week with brief meetings. They decided to review the previous day’s work and outline the target for that day. The team would then form smaller groups and move to the plant floor. Also the leader of the team would meet other team leaders and the Kaizen expert before the end of the day for a progress report.

A surprise in store!First the team arrived at the cycle times for every operation on one of the production lines. An interesting aspect here was that the same task was carried out a few months before the Kaizen event, and employees who worked on this line agreed with the results.

The final test station in the line was projected as the bottleneck. But when the Kaizen team scanned the operations on the line with stopwatches, they were in for a surprise…the culprit that was actually slowing down production was the bar code scanner. Analysis revealed that the scanner, which was first configured for one particular product developed problems when a different product was run on the line. The team contacted the technical team who reconfigured the scanner and thus solved the problem.

On the consecutive days, the team observed areas in the line where equipment could be shifted and production units could be moved together. These would help minimise the movement of parts between operating lines. It would also bring operators closer, thus giving them the opportunity to interact among themselves and help one another. This could result in substantial reduction of man-hour and overtime costs.

The fifth day of the Kaizen event was dedicated to preparing projects for the improvement of ideas. The team realised that they had many more ideas that could be implemented to improve production. What they observed during the five day Kaizen event was just the tip of the iceberg!

The troublesome bit:The Kaizen teams at TRW however, had trouble interpreting the Japanese concept of "Water Spider”. A Water Spider is a “jack-of-all-trades”, in other words, an operator/worker who stands-in for an operator who needs a break, helps out if someone in the line is behind schedule, or helps to stock the line. The Kaizen expert felt that although operators at TRW were not very open to this idea, with encouragement and training they would change their views.

The final analysis of the five-day Kaizen event at TRW showed many improvements, and also opened avenues for many more, which with a little tweaking became part of the Standard Operating Procedure (SOP). Ultimately, continuous improvement is just scratching the tip of the iceberg, only to bring more of the ‘iceberg’ to the surface!!

Continue:Furnishing Kaizen

Case Studies > Furnishing Kaizen

Page 23: Kaizen Basic

Open Plan Systems Inc in USA is a re-manufacturer of office products. It concentrated on maintaining an expansive inventory of parts and products, for almost ten years. But soon discovered that more effort was being spent on inventory management, than on customer service. It introduced a new cell environment in which similar functions are grouped together bringing down its plant size from 200,000 sqft to 140,000 sqft. In the previous set up, for example, the lamination unit was miles away from the edge band unit.

Typical customers of Open Plan Systems included large corporations, who had excess furniture consequent to relocation or take over. These customers preferred to utilise the services of a re-manufacturer of furniture than to rent a warehouse and manage the inventory. Other customers included those who like to update their furniture appearance. It remanufactured about 12 million pounds of used furniture every year, which otherwise would have been dumped into landfills. When used furniture was brought to Open Plan Systems, it was immediately evaluated and sent into production if it fitted an order, otherwise it would be put in inventory for future use. Based on the orders received, it either remanufactured the furniture, or the company made brand new products.

The three production units in Open Systems were:

1. Unit for new self-edge work surfaces. 2. Unit for remanufactured T-moulded work surfaces. 3. Unit to produce panels for wall partition. 

Open Plan Systems delivered about 30,000 pounds of furniture per day, which catered to the needs of 25 to 30 customers. The company decided to implement the “Kaizen approach” to overcome its problems in inventory management. Kaizen has a culture of sustained continuous improvement focusing on eliminating waste in all systems and process of an organisation. The Kaizen strategy begins and ends with people.  One of the biggest challenges faced by the company during the change from mass production to Kaizen style of manufacturing was gaining employee trust. The company introduced a bonus for time improvements to motivate the employees. The company took one department at a time and implemented Kaizen. In the process it involved the management and department representatives. Employees were required to give a presentation on the proposed changes and their impact on labour, time, cost of materials and quality to the management and board members.

Open Plan Systems focused on small batch sizes than on maintaining finished goods inventory and on smooth flow of each process instead of relying on one lot of material handling. As a result, the panel lot sizes dropped from 60 to 12.  This left the company with time and work force to handle customer projects and special requests.

In 1997, 120 people were handling 75% of sales volume, but currently the company is able to do the same work with 60 sales people. The lead-time was dropped from 4 to 2 weeks, for most of the projects after the transition. The material handling time has reduced, and so have bottlenecks in mass-production.

Management oriented Kaizen has resulted in achieving maximum efficiency and quality along with minimising inventory and waste in several organisations. Business or organisations need to recognise that Kaizen guides people to continuously improve their ability to meet high quality, low cost and on-time delivery.

Continue:A Commitment to Continuous Improvement

Case Studies > A Commitment To Continuous Improvement

Aeroquip Inoac Co. (AIC), a joint venture owned by Cleveland based Eaton Corp. and Japan-based Inoac Corp. manufactures rear-deck spoilers and body side mouldings in its plant located at Livingston. Besides these, AIC also has exterior trim manufacturing plants at Atlanta, Fremont and Ohio.

AIC’s customers include leading automobile giants like General Motors Corp., Ford Motor Co., Toyota Motor Corp., and Honda Motor Co. Ltd. Built in the year 1987, AIC’s plant in Livingston now has an employee strength of 187.

A visit to this plant shows that the interior walls are lined with photographs of plant managers and other employees along with detailed accounts of their accomplishments. What these depict are the achievements of the closely-knit group of employees dedicated to the cause of continuous improvement.

The plant’s efforts towards continuous improvement are remarkable. Numerous quality initiatives, Kaizen events and benchmarking studies have helped the plant to deliver high-quality products using Just-In-Time methods. Implementation of employee suggestions is a crucial aspect that has helped the plant in its continuous improvement efforts.

However, the situation was not the same in the initial days of the company. Prior to 1992, the plant followed the conventional quality-control environment, wherein quality technicians conducted routine inspections on products after their manufacture. Much of the responsibility for product quality was with the quality department. However, the transition to a Quality Assurance (QA) operation resulted in a major change in employees’ perspective of quality. The QA environment aimed at “defect prevention” rather than “defect detection”. Thus, quality became the responsibility of all employees.

Page 24: Kaizen Basic

A newly appointed officer at the plant ventured to shift to the new quality initiative. He believed in the power of employee ownership and the benefits involved. The plant started off on a Kaizen initiative, and the employees participated with keen interest. They appreciated the fact that their suggestions were being valued and implemented.

An average of three Kaizen events were held each month which generated significant improvements especially in the work cells. Some of the major benefits were

185% increase in throughput. 50% reduction of floor space. 76% reduction in material wastages. 80% reduction in walking distance.

The concept of implementing employee suggestions has brought tremendous improvements and benefits in two areas of the plant. They are the spoiler sanding area and painting cells. Rearranging the cell and using a new type of sander and grade of sandpaper helped to reduce the manual sanding steps per part from ten to four. The number of pieces sanded per hour increased from 8 to 12.5 and the walking distance was reduced by 46%.

Introduction of JIT /continuous-flow methods have not only helped AIC to minimise inventory, but also to identify and eliminate defects speedily. This has minimised capital investment for the plant. According to an official at AIC, “the Livingston plant only manufactured what each customer required for the next day”. This tight inventory control resulted in an almost perfect on-time delivery rate of 99.997%.

In order to ensure customer satisfaction, AIC requested its customers to participate in the Kaizen events. Two teams from AIC, the Customer Focus Team and the Customer Awards & Recognition Team conducted customer visits, surveys and review customer ratings. All these efforts have helped the Livingston division to capture 60% of the rear-deck-spoiler market.

The benefits can be summarised briefly as

An increase in plant level profitability by almost 235% in the last five years. Winner of Aeroquip’s Quality Plus Awards in 1995, 1997 and 1999. No lost-time accidents in the last four years.

The management at AIC accentuates that an empowered workforce and commitment to continuous improvement are the driving factors for the company’s success. Creating and sustaining the culture of team work to solve problems helps companies to improve their manufacturing processes.

The dynamics of new-product introductions and shorter product life create a market that demands response in terms of days, not weeks. To successfully respond to such situations, one of the vital requirements for continuous improvement, there must be complete synergy in the manufacturing processes. This synergy can be best obtained by embracing the ideas and skills of the employees.

Offline Reading > Books

Given below are some books relating to Kaizen with a brief description on each of them.

1. Kaizen: The Key To Japan's Competitive Success by Masaaki Imai Book DescriptionFor the professional manager or student of management, a comprehensive handbook of 16 Kaizen management practices that can be put to work. KAIZEN uses more than 100 examples in action and contains 15 corporate case studies.

2. Gemba Kaizen: A Commonsense, Low-Cost Approach to Management by Masaaki Imai Book DescriptionWhen it comes to making your business more profitable and successful, don't look to re-engineering for answers. A better way is to apply the concept of kaizen, which mean making simple, common-sense improvements and refinements to critical business processes. The result: greater productivity, quality, and profits achieved with minimal cost, time, and effort invested.

In this book, you discover how to maximize the results of kaizen by applying it to gemba--business processes involved in the manufacture of products and the rendering of services--the areas of your business where, as the author puts it, the "real action" takes place.

3. Office Kaizen: Transforming Office Operations into a Strategic Competitive Advantage by William Lareau

Page 25: Kaizen Basic

Book DescriptionMany business functions have been significantly improved through the use of a variety of quality techniques, but for the most part office and administrative functions have not kept pace. Most companies find it difficult to reduce costs in the office without noticeable sacrifices in performance. Some progressive companies are seeing improvements in their office environments through the use of Office Kaizen™, which emphasises making continuous improvements over the long haul.

Office Kaizen: Transforming Office Operations Into a Strategic Competitive Advantage presents a unified, consistent approach that enables businesses to establish a strategic competitive advantage by significantly improving the efficiency, quality and productivity of their office and administrative processes. 

4. The Idea Generator: Quick and Easy Kaizen by Bunji Tozawa, Norman BodekBook DescriptionThe goal of this book is to guide improvement activities throughout the organisation: to use creative ideas from all employees to serve both internal and external customers, to unlock the hidden potential of every single employee, and to bring new excitement and joy into the workplace. Dana Corporation gets over 2,000,000 ideas a year from all of their employees. This book tells you how to do it.

5. Kaizen Event Implementation Manualby Geoffrey L. MikaBook DescriptionKaizen Event Implementation Manual is a training material. Follow the instructions, and do the simulation and everything falls into place. The other books skirt all around the details, this book gives all the answers to all the situations. This is the only book that you need, to be able to successfully hold a Kaizen Event. It has everything! It is easy to follow and understand. This sensei Mika knows his stuff. The simulation was perfect. It was exactly the right lesson on what to do to stage an event. All of our "Lean Champions" will be required to use this manual.

6. Gemba kaizen – the common sense approach to business managementby Masaaki Imai.Book DescriptionThe word "gemba" literally means, "real place", but Imai has broadened it to encompass any on-the-spot location (like a hotel reservations desk) where key transactions take place. This book features hundreds of "gemba kaizen" success stories and "how to" examples from the US and every continent.

Online Navigator > Concept

Given below are some online links that detail the Kaizen concept.

ConceptTransformation is not achieved overnight. A significant improvement in the performance of an organisation demands efforts over a period of time. Continuous improvement is the only possible route for organisations to sustain and succeed over a period of time. The Japanese term for continuous improvement is ‘Kaizen’. Kaizen fetches results because it focuses on gradual continuous improvements through elimination of wastes. It necessitates the involvement of everyone in the organisation to work together. It can be aptly stated that Kaizen starts and ends with people.

1.What is Kaizen?An overview of Kaizen, Kaizen strategy, Kaizen approach and Kaizen implementation.http://www.wested.org/nerrc/Powerpoint%20files/CIMPPresentation2002a.ppt

2. Fundamentals of continuous improvementContinuous improvement can be instilled in an organisation if it is viewed as a tactic or strategy. It is essential to involve employees to find out and implement improvements. This presentation gives an overview of the fundamentals of continuous improvement.http://hyperserver.engrg.uwo.ca/mme492b/lectures.htm

3. The Power of Common SenseThe organisation decides to incorporate continuous improvement. Key areas have been identified. The strategies have been sincerely studied for applicability. The steps have been drafted and religiously applied. Despite on this the system fails to deliver results.Why? This PDF document suggests that the possible reason could be a lack of understanding of operations of the ‘Gemba’ – the work place.http://www.kaizen.org/PDFfolder/kaizenpcs.pdf

4. Kaizen strategiesThis presentation outlines Kaizen strategies for successful organisational change.http://www.mercynet.edu/faculty/feinstein/inbs640/studentpresentations/spring02/DebCron.ppt

Page 26: Kaizen Basic

5. Go to gemba firstThis document focuses on the importance of visiting the Gemba when a problem arises. http://www.kaizen.org/PDFfolder/gembafirst.pdf

Continue:Online links to Techniques and Tools

Online Navigator > Techniques and Tools

Kaizen is based on simple principles and does not involve complex techniques. The first step is to identify the key processes. The second is to continuously improve these processes. The key processes must be an important part of Gemba. Any variation in the processes of Gemba directly affects the final output.

Given below are some online links that encompass the techniques and tools in Kaizen.

Techniques:

1. Gemba Kaizen, the management approachThis PDF document centres its attention on Gemba – the real work place. Continuous improvement of processes related to Gemba will ensure the progress of the organisation.http://www.acpa.org.au/docs/Plenary/Imai.PDF

2. Kaizen – An ergonomic toolThis presentation gives an overview of Kaizen, the benefits of Kaizen and the steps involved in its implementation.http://www.woema.org/wkn/Speaker%20Powerpoint%20WOHC/Harada%20Slides.ppt

Tools:

Kaizen implementation involves the application of simple and cost effective tools. Some links:

1. Continuous process improvementThis PDF is a paper on Continuous process improvement (CPI). It explains the CPI models, steps in CPI, monitoring procedure for CPI and evaluation of CPI.http://www.voctech.org.bn/Virtual_lib/Programme/Regular/TQM/LeadPaper.pdf

2. Impact of Poka Yoke on job performanceThis study explains how the application of the Kaizen philosophy and Poka-Yoke techniques can help improve the productivity and job oppurtunities of individuals with cognitive disabilities.http://64.233.167.104/univ/colorado?q=cache:L1fWN5MImXsJ:www.cs.colorado.edu/~l3d/clever/projects/maps/erlandson.pdf+poka+yoke&hl=en&ie=UTF-8

3. Kaizen – a strategy for performance excellenceThis presentation provides an illustration of how Kaizen helps eliminates wastes, and subsequently helps reduce costs.http://www.landp.com.au/special/presentation_demos/lean_smpl_1.ppt

Continue:Online links to Tips

Top

Online Navigator > Tips

Given below are online links providing inputs for better Kaizen implementation.

1. Quality control circles:This PDF explains the role that quality control circles can play in an organisation’s quality pursuit.http://www.kaizen.org/PDFfolder/kaizenqcc.pdf

2. Introduction to Kaizen:This document outlines the kaizen process and makes a comparison of kaizen with innovation.http://www.kaizen.org/PDFfolder/kaizenseries2.pdf

Page 27: Kaizen Basic

3. Key elements of Kaizen:Organisations are always on the look out for something new. Any new programme that comes up catches the attention of managers. The programme is then launched on a large scale aiming for astronomical goals. But within a short span of time the enthusiasm fades away taking the programme along with it. This PDF outlines what top management needs to do to sustain continuous improvement in an organisation.http://www.kaizen.org/PDFfolder/kaizenseries3.pdf

4. About Gemba:Gemba – the work place directly affects the final product. Any variations in output can be directly rooted to variations in the processes in Gemba. But in most of the cases the management is totally ignorant of the realities of Gemba. Their decisions are based on the reports they receive from Gemba. This document outlines the rules of Gemba that ensure sustained continuous improvement.http://www.kaizen.org/PDFfolder/kaizenseries4.pdf

5. A case for standards:Standardising the process helps in increasing the use of time for producing quality goods/service at a reasonable cost. This PDF document outlines the significance of standards along with the differences between the west and Japan in the context of standards.http://www.kaizen.org/PDFfolder/kaizenstandards.pdf

6. Suggestion systems:An important component of Kaizen is the suggestion system followed by Japanese organisations. This article explains the suggestion system followed in the Japanese Kaizen implementation.http://www.kaizen.org/PDFfolder/kaizensuggesion.pdf

7. Management focus: The will to lead:Leaders with will power must head the improvement process. Will is unlike desire or ambition. Desire and ambition draw power from external sources, whereas will is the awakening of an inner consciousness. Will is strengthened, when it is based on principles that differ, from what people have been conditioned to throughout their lives. This document details a few principles that contribute for the growth of will power.http://www.kaizen.org/PDFfolder/leadership.pdf

8. Supervising with the personal touch:Employee involvement is critical for continuous improvement. Employee involvement increases when the supervisors give them the required attention. “Supervising with the personal touch” is essential for increasing the motivation of the employees in Gemba. This document explains the elements that are a significant part of this process.http://www.kaizen.org/PDFfolder/personaltouch.pdf

9. Inside Japan’s Kaizen Powerhouses:Japan’s progress is proof enough that the philosophy of Kaizen works. This document takes a look into the Kaizen environment of Japanese organisations.http://www.kaizen.org/PDFfolder/powerhouse.pdf

Continue:Online links to Additional Resources

Online Navigator > Additional Resources

Given below are some online links that provide additional information pertaining to Kaizen other than the concept, techniques,tools and the tips.

1. Guru’s view of Gemba:This document outlines the contrast between Kaizen and Western approaches as viewed by Kaizen guru Masaaki Imai.http://www.kaizen.org/PDFfolder/kaizenguru.pdf

2. An interview with Masaaki Imai:This document consists an interview with Kaizen guru Masaaki Imai.http://www.qualitydigest.com/june97/html/imai.html

3. Reading materials to sharpen Kaizen awareness:This website is an archive of various articles and reading materials relating to kaizen. These articles are displayed under different sub-groupings as Kaizen news, kaizen forum, kaizen links and kaizen cases.http://www.kaizen-institute.com/knowkaizen/centralmagazine.html

4. The Five S’s:The Five S methodology is easy to understand and relatively straightforward to implement (it's GMP and commonsense). This link provides free 5-S’s articles, white papers and resources. http://www.saferpak.com/fives.htm

Page 28: Kaizen Basic

5. Glossary:This documents contains the glossary of terms that are a part of the Kaizen concept.http://www.1000ventures.com/business_guide/glossary_lean_kaizen.html

Service Providers > Kaizen Consultants

Given below is a list of Kaizen consultants with a brief on each of them as posted in their websites.

1. KAIZEN® Institute http://www.kaizen-institute.com/institute/institute.html Kaizen® Institute (KI) is a global management consulting company, recognized as the international leader in enabling companies to learn and implement continous improvement through KAIZEN® strategies. KI enables clients to build competitive advantage through their unique approach to process improvement. KI facilitates the development of a new organization culture that embraces employee involvement, vision and leadership.

KI provides worldwide support to companies through strategically aligned business units. Located in North America , Europe, Asia/Pacific region and Southern Africa. Our consultants are the biggest assets to KI as well to our clients. KAIZEN® Institute consultants are highly experienced and have the ability to work with all levels of an organization, including union leadership. Every consultant has led significant change efforts, both as consultants and as executives in a variety of manufacturing and service companies. 

2. Kaizen Training Limitedhttp://www.kaizen-training.com/ Kaizen Training Limited is a consulting and training firm based in the UK and offering its services to the global business community.  Our vision is simple - to help our chosen clients realise theirs. We make a positive difference in the world through the three strands of learning, leading and changing. 

Kaizen Training has grown since 1987 to become a consulting and training firm with an international reputation in designing and delivering brain-friendly learning, leadership development and organisational transformation.

3. Gemba Researchhttp://www.gemba.com/contact.htm Customer satisfaction is our number one priority. We provide support and service until the results of the project are met and sustained.  Kaizen and Lean manufacturing training is only the beginning of the services that we offer.  We implement Lean thinking into any organization from Hospitals to distribution centers to office areas.

4. Blom consultancy:http://www.blomconsultancy.nl/Blom%20Consultancy.htm Consultancy in Netherlands specialised in full-scale planning and implementation support of World Class Manufacturing (WCM) programs such as TPM, EFQM, Kaizen, TQM, Six Sigma, JIT and Lean Manufacturing. WCM aims for ‘higher production at less effort’ by continuously reducing losses and creating ownership.

5. Business process solution international: http://www.bps.net/ A consulting service and education organisation that blends strategic, operational, and educational expertise to provide powerful solutions to resolve complex competitive issues. This US based consulting firm helps refocus your goals, define your organisational objectives, and improve profitability. 

6. Solution plus Inc: http://www.solutionplus.com/index.htm Founded in 1996, A Canada based consulting firm Solutions Plus Inc. is an International Lean Process, Business Transformation and Human Capital consulting firm specializing in an integrated approach to continuous product, process & human improvement, with an emphasis on professional development & adult learning.

7. Wyrick Enterprises Inc:http://www.wyrickenterprises.com/ California-based training and consulting firm whose mission is to improve client organisational performance by assessing their Leadership, Processes & Systems needs and providing the appropriate resources at the Right Time…with the Right Talent…to produce the Right Results!  Our resources work together to help your resources work together . . . better!

 

Page 29: Kaizen Basic