A A STRATEGY FORY FOR

PERFORMANCEPERFORMANCE

EXCELLENCEEXCELLENCE

CONTINUOUS IMPROVEMENT

FOR THE BETTER

Kaizen aims to eliminate waste ("activities that add cost but do not Kaizen aims to eliminate waste ("activities that add cost but do not add value").add value"). It is often the case that this means "to take it apart and put back It is often the case that this means "to take it apart and put back together in a better way." together in a better way."

This is then followed by standardisation of this 'better way' with This is then followed by standardisation of this 'better way' with others, through standardized work. others, through standardized work.

Process-Oriented Thinking vs.

Result-Oriented Thinking

Kaizen concentrates at improving the process rather than at achieving certain results.

Such managerial attitudes and process thinking make a major difference in how an organization masters change and achieves improvements.

Kaizen and Management Management has two major components:

Maintenance, and Improvement.

MAINTENANCE: The objective of the maintenance function is to maintain current technological, managerial, and operating standards.

IMPROVEMENT: Under the improvement function, management works continuously towards revising the current standards, once they have been mastered, and establishing higher ones. Improvement can be broken down between innovation and Kaizen. Innovation involves a drastic improvement in the existing process and requires large investments. Kaizen signifies small improvements as a result of coordinated continuous efforts by all employees.

Visual Control & the Workstation

The 5 SThe 5 S

To Sort

Eliminate what’s not absolutely necessary

To Sanitize

Improvement of the workstation. Be organized to reduce clutter.

To Straighten

Ensure space for each thing, and a thing for each space. No more searching.

To Sweep

Maintain a clean and orderly space to make problems easily identifiable. Eliminate rejects and scrap..

To Sustain

Maintain continuous effort. This is a way of life.

Employee Empowerment: the Suggestion System

• The suggestion system is an integral part of an established management system that aims at involving employees in Kaizen. The number of worker's suggestions is regarded as an important criteria in reviewing the performance of the worker's supervisor and the manager of the supervisor.

•   The Japanese management encourages employees to generate a great number of suggestions and works hard to consider and implement these suggestions, often incorporating them into the overall Kaizen strategy. Management also gives due recognition to employee's efforts for improvement. An important aspect of the suggestion system is that each suggestion, once implemented, leads to an upgraded standard.

Kaizen's Starting Point: Setting the Right Mindset & Business Environment

• not a single day should go by without some kind of improvement being made somewhere in the company • customer-driven strategy for improvement - any management activity should eventually lead to increased

customer satisfaction • quality first, not profit first - an enterprise can prosper only if customers who purchase its products or

services are satisfied • recognition that any corporation has problems and establishing a corporate culture where everyone can

freely admit these problems and suggest improvement • problem solving is seen as cross-functional systemic and collaborative approach • emphasis on process - establishing a way of thinking oriented at improving processes, and a management

system that supports and acknowledges people's process-oriented efforts for improvement

The Key Kaizen PracticesMindset & Culture Production Process

• customer orientation • quality control (QC) circles • suggestion system • discipline in the workplace • small-group activities • cooperative labor-

management relations • total quality control (TQC) • quality improvement

• automation & robotics • autonomation • zero defects • total productive

maintenance (TPM) • kamban • just-in-time (JIT) • productivity improvement • new product development

Definition

• Voluntary groups of employees who work on similar tasks or share an area of responsibility

• They agree to meet on a regular basis to discuss & solve problems related to work.

• They operate on the principle that employee participation in decision-making and problem-solving improves the quality of work

Genesis• Quality Circles were first seen in the United States in the

1950’s• After World War I Japanese started using them for

improving products and reliability of manufacturing• Circles were developed by Dr, Kaoru Ishikawa in Japan in

the 1960’s• By 1975 Japanese were topping the world in quality and

Productivity• Circles were re-exported to the US in the early 1970’s and

was accepted all over the world• 1980s brought TQM and reduction in use of Quality

Circles

Philosophy1. It is people – building philosophy

2. It is based on providing self - motivation

3. Also based on deriving happiness in improving environment without any compulsion or monetary benefits.

4. It calls for progressive attitude on the part of management

5. Willingness of management to make adjustment in style and culture

Concept

Quality Circle concept has three major attributes:

a. Quality Circle is a form of participation management.

b. Quality Circle is a human resource development technique.

c. Quality Circle is a problem solving technique.

The concept of Quality Circle is primarily based upon recognition of the value of the worker as a human being, as someone who willingly activises on his job, his wisdom, intelligence, experience, attitude and feelings.

Objectives

The objectives of Quality Circles are multi-faced.

a) Change in Attitude.From "I don’t care" to "I do care" Continuous improvement in quality of work life through humanisation of work.

b) Self DevelopmentBring out ‘Hidden Potential’ of peoplePeople get to learn additional skills.

Objectives

c) Development of Team SpiritIndividual Vs Team – "I could not do but we did it"Eliminate inter departmental conflicts.

d) Improved Organisational CulturePositive working environment.Total involvement of people at all levels.Higher motivational level.Participate Management process.

Organisational StructureBasic Framework of Organisational Structure for Quality Circles

Steering Committee

Coordinator

Facilitator

Circle Leader

Circle Members

Launching Quality Circles

Expose middle level executives to the concept.

Explain the concept to the employees and invite them to volunteer as members of Quality Circles.

Nominate senior officers as facilitators

Form a steering committee.

The Steps involved in launching of quality circles are:

Arrange training of coordinators, facilitators in basics of

Quality Circle approach, implementation, techniques and

operation. Later facilitator may provide training to Circle leaders

and Circle members.

A meeting should be fixed preferably one hour a week for the

Quality Circle to meet

Formally inaugurate the Quality Circle.

Arrange the necessary facilities for the Quality Circle meeting

and its operation.

Launching Quality Circles

Training

Training is very essential for successful operation of Quality Circles

Such Training comprises of:

Brief Orientation programme for top management

Programme for middle level executives

Training for facilitators

Training for circle leaders

Process of Operation1. Problem Identification: Identify a number of problems

2. Problem Selection: Check priority and importance

3. Problem analysis

4. Generate alternative solutions

5. Select most appropriate solution

6. Prepare plan of action

7. Present solution to management

8. Implementation of solution

Basic problem solving Techniques

Techniques Used

1. Brain Storming

2. Pareto Diagrams

3. Case and Effect Relation

4. Data Collection

5. Data Analysis

Tools used for analysis

1. Tables

2. Bar Charts, Line Graphs

3. Histograms

4. Control Charts

5. Scatter diagrams

Benefits Limitations

• Increase Productivity

• Improve Quality

• Boost Employee Morale

• Inadequate Training

• Unsure of Purpose

• Not truly Voluntary

• Lack of Management Interest

• Quality Circles are not really empowered to make decisions.