kaizen | continuous improvement for organization
TRANSCRIPT
Institute of Management Consultants Myanmar
KAIZEN / Continuous Improvement for Organization
Ms. Ngwe Nyunt Shin @ Shin Lay
u Program Outlines
• Productivity
• 5S for workplace
• TPS: Toyota Production System
• Quality Control
Institute of Management Consultants Myanmar
Productivity
u What is productivity?
Raw materials,Machines,
Equipment,Energy,Workers
+Products+Services
Value Added
InputCompany Activities
Output
Productivity = ----------------------------------------------------Input (raw materials, energy, workers, etc.)
Output (products, services, etc.)
• “Productivity” means how to effectively use “Inputs” toproduce ”Outputs”.
• The ways of increasing productivity are, e.g. to increaseoutput factors or decrease input factors.
u Quality Vs Productivity
100 – 1 = 99
100 – 1 = 0
X
u Key factors of Quality and Productivity Improvement
“Management”Leadership/Commitment
Long term view of managementHuman centered management
Excellent business process
“Workers”Positive Work Attitude
MotivationTeamwork
Skill Upgrading
Improvement of Productivity & Quality
Sustainable Customer Satisfaction
u 5S & KAIZEN Application
Advanced Integrated
Productivity & Quality Improvement
KAIZEN (Continuous Improvement)
Foundation Building (5S= Clean Workplace)
ISO, TPM, TQM
u Philosophy
One can do better today than yesterday, and that tomorrow will be better than today.
Institute of Management Consultants Myanmar
5S for Office
u 5So 5S is a kind of discipline to keep working environment safe
and clean for the improvement of productivity, quality andsafety.
o 5S is a Japanese workplace organization methodology whichwhich aims to achieve a clean, neat and properly organizedworkplace through employees’ initiatives.
u Understanding 5S
u SEIRI/Sort/Straighten upClearly separate necessary things from unnecessary ones and discardunnecessary ones.u SEITON/Set in order/Put things in order“ A place for everything and everything in its place”. Arrange necessaryitems in good order so that they may be easily picked up for use. (Acontest for searching documents or materials with 30 second)u SEISO/Shine/Clean upTo clean and inspect the workplace thoroughly so that there is no dust onthe floor, tables or office rooms. (Individual cleaning responsibility).Set aside time for cleaning (e.g. annual cleaning day that involves all,cleaning should be done together with inspection.It is not only to clean the workplace but to detect every kind of wastes andproblems through complete cleaning.Assign a person who is in charge of cleaning of each workplace andmachine. Establish the cleaning standard (Where: Place, Who: Person incharge, When: Frequency, How: Cleaning method)
u Understanding 5S
u SEIKETSU/Standardize/CleanlinessTo keep the workplace well maintained by practicing 3S of SERI, SEITONand SEISO all the time. To set and maintain a high standard for aconsistently organized work environment (Rule for keeping 3S)§ Create a schedule for housekeeping
§ Form 5S cross-functional teams to brainstorm on possiblehousekeeping projects
§ Reward and recognize people for their 5S efforts
§ Learn best practices by other companies
u SHITSUKE/Sustain/DisciplineConduct in-house training or train people how to observe self-disciplineand practice the 5S system continuously so that it would become a habitand be ingrained in the culture of the organization. (Do 5S Daily)o The important point of Shitsuke is forming the habit of practicing 3S.o Change your mindset and take pride in maintaining a clean and
organized workplace
u Objectives & Benefits of 5Su P, Q, C, D, S, M (Productivity, Quality, Cost, Delivery, Safety &
Morale)u Work environment becomes cleaner, more productive, more
efficient, organized and saferu Improvements are visible to everyone, including your
customers and partnersu Reduce time of looking for somethingIf it is necessary to look for materials or tools after starting work,there could be a big loss of time.u Reduce CostIf the workplace is clean and well organized, work efficiency couldbe raised and quantity of defective services could be decreased.Accordingly, service cost will be reduced.u Shorten the delivery timeIf the shop floor is dirty and in disorder, shortage of raw materialswill lead to delay of delivery.
u Objectives & Benefits of 5S
u Secure safe working conditionRaw materials or products that are not put properly, water or oilsplit on the floor may cause occupational accidents.
u Employer’s moraleRaise employer’s morale, consequently raise productivity.
u 5S is the basis of production managementWork management, Production control, Quality management,Productivity management
u Projects a good corporate image, which will in turngenerate more business
u 7 Wastes in the office (7 MUDA)
o Over Production – More information than the customer needs, moreinformation than the next process needs, creating reports no one reads, ormaking extra copies.
o Transportation – Unnecessary movement of people or parts betweenprocesses. Retrieving or storing files, carrying documents to and from sharedequipment, taking files to another person, or going to get signatures.
o Motion – Unnecessary movement of people within a process. Searching forfiles, extra clicks or keystrokes, clearing away files on the desk, gatheringinformation, looking through manuals and catalogs, or handling paperwork.
o Waiting – People or parts that wait for a work cycle to be completed. Waitingfor faxes or a copy machine, for the system to come back up, for a customerresponse, or a handed-off file to come back.
o Unnecessary Processing and over Processing – Creating reports,repeated manual entry of data, use of outdated standard forms, or use ofinappropriate software. Processing beyond the standard required by thecustomer.
o Inventory – Raw materials, work in progress which is not having value addedto it. Files waiting to be worked on, open projects, too many office supplies, e-mails waiting to be read, or unused records in the database.
o Defects/Rework – Data entry errors, pricing errors, missing information,missed specifications, or lost records
Contents
• 5S• Understanding 5S• Objectives and Benefits of 5S• 7 Wastes (7 MUDA)• Overview of 5S implementation (P-D-C-A approach)• Roadmap of 5S implementation• Plan• Do• Check• Act• Conclusion
u Overview of 5S implementation(P-D-C-A approach)
u Planu Preparation
u Provide training & education for everyone
u Form 5S team
u Set up 5S zone
u Determine 5S objectives, goals and implementation phases
u Make 5S action plan and launch 5S
u Overview of 5S implementation(P-D-C-A approach)u Do
u Sort
u Identify what is necessary
u Set in order
u Define what and how to arrange
u Shine
u Identify dirt sources
u Identify root causes
u Take an action to eliminate dirt sources and root causes
u Standardizeu Who is responsible?
u What actions to take to maintain the desired condition?
u When must those action be taken?
u Where must they apply?
u What procedures need to be followed?
u Sustainu Everyone understand, obey and practice the rules and
procedures
u Overview of 5S implementation(P-D-C-A approach)
u Checku Assessment
u Conduct internal 5S audit
u Benchmark within the department and with other organization
u Ensure the established 5S procedures and follow them thoroughly
u Actu Continuous Development
u Develop 5S practices into a HABIT
u Compare actual goals with set goals
u Reward and recognize efforts of staff
u Register 5S certification
u Review Plan-Do-Check-Act Cycle
Roadmap for 5S implementation
u Plan
u 5S trainingu 5S awareness for Top Managementu 5S awareness for Employeesu Step by step 5S implementation for everyoneu Step by step internal 5S audit
u Official announcement of 5Su It is essential that the top management make official announcement of
5S to all employees.u Promotion poster of 5Su Big cleaningu Formation of the organization of 5S
u Objectives: To enhance total participation at all levels of employees andto develop a continuous improvement culture and best performancespirit in the teams.
u Do
u Presidentq 5S committee (consists of top management and the managers of each department)
The role of the 5S committee is:u Decision-making of 5S activity
u Leveling of 5S activity of each group
u Assisting the facilitator
u Diagnosis by the top management
q 5S Facilitator5S committee will assign the 5S Facilitator, who is the key person. His/her role is:
u Instructor of the 5S training for all workers
u Preparation of 5S promotion pamphlet, poster, etc.
u Secretariat of the 5S committee
u Advisor to all 5S group
u Promoter and reporter of 5S activity
u Record-making of 5S activity
v Managers
ü 5S groups
5S group leader
u Developing the implementation plan & 5S implementation
at his workplace
u Every member must know their own 5S responsibilities
and perform accordingly.
u Dou Guidelines for practicing SORT (SEIRI)
u Disposal Standard
u Potential impactsu Unwanted items are eliminated.
u Searching time is reduced.
u Working environment is improved.
u Space utilization is maximized.
Unnecessary items Required action
Items having no value and easy todispose
Throw away immediately
Items having some sales value Look for buyer who offers the best price
Items having no value and theirdisposal is costly
Work out the least costly and safest wayfor disposal
Necessity Example Method of arrangementLow +No use in the past year
+Use only one time in the last 6-12months
+Discard all of them+Store in a remote place
Medium +Once in the last 2-6 months+More than once in a month
+Store in the central +Storage in the workplace
High +Once a week+Everyday+Every hour
+Store close to the workplace
u Dou Guidelines for practicing SET IN ORDER (SEITON)“Set in order” reflects a very popular saying: “A place for everything and everything init’s place”.
u Set in order includes activities such as:
u Put names and numbers on all jigs and tools.
u Store tools close to the machine with which they will be used accordingto sequence of work operations.
u Organize files and store them using color cord to make it easy to identifymaterials at glance.
u Store similar items together using racks or shelves.
u Store different items in separate rows.
u Use bins to put in small items.
u Use color for quick identification of items.
u Label clearly each item and its storage area (Visual Control)
u Use see-through cover for better visibility.
u Create tool boards.
u Dou Guidelines for practicing SET IN ORDER (SEITON)
u Potential impacts:u Necessary items should be identified and positioned in the right place and
location.
u Unwanted items should be eliminated.
u Searching time could be reduced.
Necessary items Required action
Items frequently used Must be place near the point ofuse
Items sometimes used Can be place further away
Items not used at all but mustbe kept
Must be stored separately withclear identification
u Dou Guidelines for practicing SHINE (SEISO)It ensures a more comfortable and safer workplace, as well as better visibility, whichreduces searching time and ensures higher quality work, product or service. Everyoneenjoys working in a clean environment which morale and increases productivity.
Step1: Assign cleaning area to every employee.
Step2: Determine what is to be cleaned.
Step3: Determine the method.
Step4: Prepare cleaning tools and materials.
Step5: Do cleaning.
u Potential impacts:Higher quality work and products.
More comfortable and safer work environment
Better visibility and reduced searching time
Lower maintenance expense
To make a positive impression for visitors
u Dou Guidelines for practicing STANDARDIZE (SEIKETSU)
To ensure a high standard workplace organization by continuous employment of 3S (SORT, SETIN ORDER and SHINE).The checklist must serve as visual signpost to ensure that the daily 3S requirements are carriedout habitually as best practices in the work area. Items to be included in the check list:
u Job responsibilities that includes:
u Who is responsible? (ownership)
u What actions to take to maintain the desired condition?
u When should those action be taken?
u Where should they apply?
u What procedures need to be followed?
u Work-in-progress/inventory rules
u Cleaning proceduresu Maintenance schedules
u Regular work activities integrated with 3S duties.
v Potential impacts:u Better workplace standards.
u Better visual control systems.
u Establishment of rules and standard operation procedures (SOP)
u Information sharing on standards.
u Improvement in operation and workflow.
u Check – 5S Audit
u Objectives: To ensure that the organization could assess its strength forimprovement.
u The 5S self-assessment is to be monitored and documented through 5Sinternal Audit methodology.
u Organizations that have successful 5S activities measure their performancethrough periodical audits using 5S checklists. Results of the audits should bedisplayed at the 5S corner of every department. This creates an atmosphere offriendly competition and will help instill pride in the teams.
u This evaluation and competition must be linked with a reward system; mostsuccessful organizations offer monthly rewards for the winning teams in thevarious 5S categories.
u Act
u Importance of KPIsThe self-assessment and 5S certification naturally drives theorganization goal to continuously improve on the quality and thecost effectiveness of providing the product or service throughsystematic guide using Key Performance Indicators (KPIs).
u The KPIs most commonly used are:Productivity, Inventory levels, Lead time, Number of accidents,Machine breakdown, Searching time, Rework ratio, Customercomplaints
u Establish Standards (E.g. Conference Rooms)
u No food is allowed in the conference roomu Doors should be closed during all meetingsu Cell phones should be put on silent before a meeting startsu White boards must be cleared at the end of the meetingu All chairs must be put back in place and if extra seating is
brought in it must be removed at the end of the meetingu The meeting organizer is responsible for making sure the
conference room is clean and returned to standards at the endof each meeting. (accountability)
u Kaizen (Continuous Improvement)
u 5S utilizes Kaizen which is a philosophy of make steps small,actions be specific and time agreed but continuous improvementby whole organization in team.
u E.g.: Kaizen Proposal: Group, Name, Date, Current status andits problem, Proposal, Expected benefits (Be specific)
u Kaizen presentationu Kaizen rewarding at company ceremonies
u Conclusion
The 5S management is one of the preliminary steps for anorganization to practice high level tools such as, TotalProductive Maintenance (TPM) to meet the high standards ofcustomer expectations.
Institute of Management Consultants Myanmar
TPS
WHAT IS TPS
u Toyota Production Systemu A consistent way of thinkingu A total management philosophyu Focus on total customer satisfactionu An environment of teamwork and improvementu A never-ending search for a better wayu Quality built in processu Organized, disciplined work-placeu Evolutionary
TOYOTA WAY
u KAIZEN Continuous Improvement
u Respect for people, G. Convis, Toyata Kentuckeyu JIT/One-piece-flow/PULL system/Inventory Control
u Elimination of 7 waste (non-value adding works: Overproduction,Inventory, Waiting, Motion, Transportation, Rework/Defects, Overprocessing)
u JIDOKA Autonomation
u Process oriented than reactive to results. Learning Organization “We don’t just build cars. We build people.”
JUST-IN-TIME
u Right timeu Right amountu Right material
Work Samplingu Main Worku Preparationu Shop Allowance
§ Looking for documents§ Waiting for instructions§ Waiting for files/materials§ Meeting
u Work Allowance§ Reading specifications§ Inspection
u Personal Allowance§ Washing hands§ Drinking Water§ Going to toilet
u Non-work§ Chatting§ Unapproved access§ Walking unknown reason§ Absent unknown reason
Working ratio (Main work & Preparation- 9% is high) should over 75%, Shopallowance should be less than 10%, Non work ration 7% is extremely high.u Train employees work discipline and morals
Main work54%
Preparation9%
Delay: Work Allowance
9%
Delay: Shop Allowance
16%
Delay: Personal
Allowance5%
Non-work7%
EXAMPLE
Line Balance Improvement (one of the key element of JUST-IN-TIME production system)
u Line balance improvement conceptI. Operation Kaizen Method: Balancing by shortening the cycle timeII. Shifting Method: Balancing by shifting part of the operation of
bottleneck process to another processIII. Absorption Method: Balancing by taking relate operations from
outside of the line in lighter burden processesIV. Optimal Assignment Method: Balancing by appointing experienced
employees to heavier processes and inexperienced ones to lighterprocesses
V. Operation Increase Method: Balancing by increasing the number ofemployees for heavier burden processes
VI. Move all of work elements: Move all work of elements to otherstations to eliminate the employee (eliminate one process)
u Effects: Leveling the tact time of each process, reduce and minimizethe WIP, increase the line capacity, smooth production flow
Autonomation or JIDOKA
u Stop Production Line to build in Qualityu Stop the line:
§ Production people hate to stop production. Volume of productsshow their achievement.
§ Minor quality problem can be fixed later in more efficient way
§ It would affect the whole line, and problem solving might taketime.
u Do not pass defects to downstream. Fix them on the right spot.Next step is My Customer!
u Organization Autonomation: To find cause of problems and fix them
u Check Organizational issues:
u Span of control: Group leader-team leader-line worker
u Role of those leaders and actual performance. “How are they helpingworkers?”
u KAIZEN as habit
Autonomation or JIDOKAu When ANDON alarm is released, (Abnormality Detected)
1. Stop
2. Leader/QC go to the spot and see the problem
3. Understand the fact of the problem
4. Ask 5-Why (Why in five times)
5. Take Action
u Example of 5-Whys
u To err is human; to blame the next guy is even more so.
u Fix the problem, not the blame. (Root cause analysis)
Problem Countermeasures
A puddle of oil on the floor
1 Machine is leaking oil Clean up the oil
2 Gasket is deteriorated Replace the gasket
3 Gasket material is inferior Change specifications of gaskets
4 The offered price was cheap Change purchasing policies
5 Supplier selection done on short term cost saving
Change supplier evaluation policy
Autonomation or JIDOKA
u See and understand on the shop floor.~ Genchi-Genbutsu
u Observe the production floor without preconceptions and with a blank mind. Repeat “why” five times to every matter. ~Taiichi Ohno
PULL CONCEPT
u Put customer first. Next step is my customer.
WHSupplier Production WH Customer
Raw MateInventory
In-processInventory
ProductInventory
INVENTORY MANAGEMENT
u Inventory: Raws + in-process + Product + Sales WHu Involving Customer/supplier Sales patterns, customer habits,
nature of products.
WHSupplier Production WH Customer
INVENTORY MANAGEMENT FOR PRODUCTION PLANNING
u #1 ESTABLISH INVENTORY POLICYu Sales: Stability, seasonality, predictability, delivery size, cost of missed
sales, etc.
u Production: Lead time, reliability, raw mate availability, Plant availability & reliability
(e.g. Raw material 1 month (0.5-1.5), Products 0.5 month (0.3-0.8), Some products before X-mas, 3)
Production WH Customer
INVENTORY MANAGEMENT FOR PRODUCTION PLANNING
u #2 MEASURE & CONTROLu Sales data
u Inventory data
u Production data
u Missed sales due to empty stock
Production WH Customer
Production Planning
Missed opportunity
INVENTORY MANAGEMENT FOR PRODUCTION PLANNING
u #3 RE-EVALUATE, REVIEW POLICYu Inventory target – sales-days to inventory control
u Sales trends by product
u Missed opportunity
u Supplier/customer changes
Production WH Customer
SECURING CONTINUOUS IMPROVEMENT
Observe Rules
AnalysisStandardization
Improvement
Comfortable work place under
Observed Rules
Neglected Rules
Communicate employees Change Rule
Bad Employees Bad Rule
• You show by yourself• Train & teach them• Let them do• Praise them
Institute of Management Consultants Myanmar
Quality Control
Quality Control
u Quality is customer satisfaction.u Quality is a shared responsibility of the team, not just the QA’s or QA Manager.u Quality is not an activity/role, it’s a mindset.u Why Quality?
Reasons for quality becoming a cardinal priority for most organizations:
§ Competition – Today’s market demand high quality products at low cost.Having “high quality” reputation is not enough! Internal cost of maintaining thereputation should be less.
§ Changing customer – The new customer is not only commanding prioritybased on volume but is more demanding about the “quality system.”
§ Changing product mix – The shift from low volume, high price to high volume,low price have resulted in a need to reduce the internal cost of poor quality.
§ Product complexity – As systems have become more complex, the reliabilityrequirements for suppliers of components have become more stringent.
§ Higher levels of customer satisfaction – Higher customers expectations aregetting spawned by increasing competition.
The Deming Philosophy
Improve quality Decrease cost because of less rework, fewer mistakes.
Productivity improves
Capture the market with better quality and reduced cost.
Stay in business
Long-term competitive strength
Customer Complaint on Quality
Production Inspection Quality Complaint
Good x Good = No
Fail x Good = No
Good x Fail = No
Fail x Fail = Complaint
u Inspection helps improve production process
Complete quality at each step
• Customer Feedback: Comments & Complaints: good opportunity to improve quality
Root Cause Analysis: Some tools
u 5 Whys:As quick investigation. Recurrence prevention.
u Swiss cheese model:Fix defensive barriers
u Fishbone analysis:Material, Manpower, Machine/Equipment, Environment, Management,
Methods, Management System
u Brainstorming:Individual or Team
Organization Incidents
u Swiss cheese model
Worst Case
Incident
Intention
Goal
Fishbone Analysis/ Cause and Effect Diagram
IncidentUnwanted event
Immediate Action
• Discount• Replace product• Apology visit
Firefighting
Cause finding
Action Planning
Implementation
Happy CustomersHappy Employees
Recurrence Prevention
• Safety incident• Quality problem• Angry customer• Machine Failure
Focus on Firefighting Focus on Recurrence Prevention
• Angry customer! Urgent! • Need to study. May wait.
• Reactive • Proactive
• High cost/low throughput • Low cost in long term
• High failure rate • Low failure rate
• Focus on short term • Focus on long term
Training
u We can learn from minor/near miss incident. For possibly majorincident in future. Do not wait for major incident.
u On-the-Error Training, Learn from Failure
u Regular Employee TrainingMost of our product/service defect happen in our knowledge.Good communication in the team can reduce defects.
Thank You!
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