kaizen from start to finish part i - asq orange empire

8/13/2013

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“KAIZEN FROM START TO FINISH?”Vinay Goyal

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Disclaimer

• This presentation has nothing to with my current employer and its internal practices.

• I will try to avoid sharing names and internal practices of my previous companies during my presentations (unless they no longer exist)• All of the companies I worked for or with were successful

companies in their respective fields

• A copy of this presentation will be emailed to you• Also posted on Section website

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Presentation Outline

• Due to the nature of the topic:• This is a Three part Presentation

• Part I:• What is Kaizen?

• What are the key definitions, terminologies that are commonly used with Kaizen?

• Part II:• Kaizen Planning

• Management Support

• Team Building

• Implementation

• Part III:• Reporting

• Celebration

• On-going sustaining and future Kaizen Planning

• Q & A

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Question:• Have attended Kaizen training or Seminar? Or are/were part of

Kaizen event(s)? And

• Believe that Kaizen is the way of life?• Personal

• Professional

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Those who have been part of the Kaizen• This is an interactive session

• Please feel free to share your success (or “failure” ) story• If you have any questions, please feel free to discuss, email me at

[email protected]• If I do not know the answer, I will get back to you.

• Last session in October will be a Q&A session

• Those who are new to Kaizen• Please feel free to ask questions

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PART Io What is Kaizen?

o What are the key definitions, terminologies that are commonly used with Kaizen?

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What is Kaizen?

• Kaizen (改善)

• The Japanese – Kanji - word "kaizen" simply means "good change”• In the Japanese dictionaries or in every day use, It has no inherent

meaning of either • “Continuous" or “Philosophy”

• The word Kaizen refers to any improvement (like in English). It can be • One-time

• On-going

• Large or

• Small

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What is Kaizen?

• The word Kaizen is used to identify • The Japanese industrial and business improvement techniques

and often referred as continuous improvement, or Japanese philosophy

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Kaizen in Japan

• One of the most commonly used words in Japan• Japanese media is bombarded daily with statements by

government officials and politicians regarding the• KAIZEN of our trade balance with the United States

• KAIZEN of diplomatic relations with country X

• KAIZEN of the social welfare system.

• Both labor and management speak of the KAIZEN of industrial relations

• In business, the concept of KAIZEN is so deeply ingrained in the minds of both managers and workers that they often do not even realize that they are thinking KAIZEN• That is true with anyone in our personal and professional life

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There is no one fixed formula

• No mathematical equation or formula • It is a combination of

• Philosophy

• Related measuring methods

• You can pick and choose applicable quality tools Old and New

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Common Sense• Everything we are going to discuss here is nothing but a

collection of common sense practices• But common sense is not ________

• Common• Something that is a common sense for you may be a rocket science

for someone else• Do not presume that others have the same experience, knowledge

understanding as yours

• It comes with • Exposure• Experience• Listening• Sharing• Discussing• Most importantly Be a Good Listener First and look from other’s

perspective

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Common Sense

• That’s what Kaizen is • There should not be any rank

• Leave your ego at the door• Everybody has equal opportunity to speak

• No idea is a bad idea

• Intention is not to look for a perfect solution • Yes, if possible

• But look for a better and improved solutions

• Keep making it better in smaller increments

• We cannot do it alone, so bring people from cross functional areas and work on process improvement

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Good Change Has No Boundaries

• What we are going to talk about applies to everyone irrespective of it you work for • Medical

• Drugs

• Aerospace

• Food

• Any kind of Industry

• Our day today personal life

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Typically what is the most important thing in our life• Happy and prosperous life

• Recognition and Appreciation

Do It Again

Kaizen

Identify Waste

PlanCounter-measures

RealityCheck

MakeChanges

Celebrate

MeasureResults

Make thisthe Standard

DocumentReality

VerifyChange

Start Here

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Kaizen

• Endless Pursuit of Waste Elimination

• A continuous improvement mindset

• Everything that we do today can be improved

• Kaizen has no end• So title Kaizen from Start to Finish

• Finish means a short break for celebration but it is a never ending process

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Personal Experience

• Before coming to the US • I was the Service Manager North India in one of the largest

entertainment electronics company in India for over 5 years• Company was in collaboration with

• Japanese companies • Akai and National (Panasonic) – Video Cassette Recorders

• Taito and Namco – Video games

• Our sales and service offices, manufacturing sites were constantly visited and audited (anonymously) by these companies• Unaware of Japanese terms like Kaizen, PokaYoke, SPC, Muda, Mura,

Muri, etc.

• Because – “They were the part of doing business”

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Personal Experience

• My first job in the US:• I was an hourly employee

• There was a minimal training

• I was given the procedure to read and follow

• I was told that I have had 90 days probation period to achieve (fixing) trouble shooting average 20 drives a day

• Challenge was:• Procedures were bulky

• Procedures did not match with the process

• When I challenged certain steps in the procedure, management showed me the right approach but no-one corrected them

• Anytime I asked a question, I was warned that I was asking too many questions and reminded 90 day probation

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Personal Experience

• I was confused with the system

• In the Japanese work environment • We always had work (technology companies were doing very well)

• Work was evenly spread out

• We have had enough staff to support the demand

• In the US• Shelves were full in the morning, empty in the afternoon

• Worried – I may not have a job next day

• There were days, when we did not have enough work• Waiting, wasting time

• There were days, we were expected to work over time• When we did not want to

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Personal Experience

• Solution• Created my own trouble-shooting guide using my engineering

background

• Started documenting my own findings

• Created a trend chart (manually plotting and sorting the data)• Symptom - where I can find the solution

• Most of the failures were attributed to handful problems• Marginal Design (certain sections of design)

• Workmanship problem

• Improved my productivity to an average of 40 drives a day within 45 days

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Personal Experience

• Reason:• Competition: Engineering was under pressure to design a faster,

better and cheaper product

• Demand was high – so goal was to ship as many products as possible

• Bottom line – there was no or very little effort to improve the processes and design• Especially based on the production and field data

• Data was collected but no time to review it

• Company could not afford to spend time to discuss improvement

• Often workers had better solutions but they were not consulted

• Number of products waiting for repair/rework were constantly growing

• Those who knew the solution did not want to share with others• Job security and SILO mentality

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Improvement East Versus West

• There are two contrasting approaches to progress: • The gradualist approach, and

• The great-leap-forward approach

• Japanese companies• Generally favor the gradualist approach called Kaizen and

• Western companies the great -leap approach - an approach exemplified by the term Innovation:

Kaizen Innovation

Japan Strong Weak

West Weak Strong

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Kaizen Innovation

Effect Long-term and long- lasting but un-dramatic (publicity)

Short-term but dramatic (big shows, press, celebration)

Pace Small steps Big steps

Involvement Everybody Select few "champions"

Approach Collectivism, group efforts, system approach

individual ideas and efforts, specific project team

Investment Little Investment Scrap and rebuild

Efforts People Technology

Advantage Works well in slow-growth economy

Better suited for fast growth economy

Kaizen versus Innovation

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• Is one better than the other?

• Both approach to progress are successful and pay dividend depending upon the situation.

• Innovation brings• Staircase progression

• Kaizen brings• Gradual progress

Inn

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Inn

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Kaizen

Kaizen

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• But the reality the actual progress achieved through innovation generally follows the pattern

• Why?: • Once a system is placed as result of innovation

• Deteriorate unless continuing efforts to• Maintain and

• Improve

• Supported by the

Management

Inn

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Inn

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Kaizen

Kaizen

It lacks the Kaizen strategy go along with it.

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• Typically all systems are destined to deteriorate once they are established.• People gets complacent after the system is in place

• When efforts are lacking decline is evitable

• Key Point is:• Once the innovation is achieved, it must be followed by a series of

Kaizen efforts to maintain and improve it

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• If standardization is just to maintain the status quo (existing status of affairs)

Inn

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Inn

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Standard

Standard

Inn

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Inn

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Kaizen efforts not only maintain the standards but also take them to new heights

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• Kaizen approach is • Recognizing the results while emphasizing the means (path to

achieve it)• Involve and recognize all than a few (project team) who are with striking

success or breakthrough in innovation

It is extremely difficult to increase the sales by 10% but not to cut manufacturing cost by 10%

Improving process

Removing non value added materials and processes

Today more and more Western Companies are improvement conscious and placing high priorities to Kaizen like efforts

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• Innovation Leads to• New Products based on New Technological Innovation

• High Rewards

• Management Obsession for the bottom line ($$$)

• More sophisticated accounting and reporting systems• Forcing Managers to

• Account every action they take and

• Return on Investment of every managerial decision

Such as system does not lend itself to building a favorable climate for improvement

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• Improvement is typically• Gradual

• Often Invisible

• Takes a while to show the results

• In Western world• Job was reviewed strictly based on the results

• “I do not care what you do and how you do it……I want the result now ! (or by a certain date)

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Kaizen Growth in Japan

• Dr. Deming and Juran in the late 1950s’ and 1960’s helped Japanese companies by introducing new Kaizen tools e.g. Statistical Process Control and TQC

• Most new concepts, systems and tools that are widely used in Japan today for improvement

• Were developed using Kaizen approach

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Kaizen and Management

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Japanese Perception of Job Function

• Improvement: Improving current standards• Maintenance: maintaining current technological, managerial and

operating standard


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• Management Maintenance Task:• Establish

• Policies• Rules• Directives• Procedures

• Monitor • They have been followed

• People are able to follow but do not follow• Introduce Discipline

• People are unable to follow• Take appropriate actions

• Training• Review and Revise

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• Managers• Improve standards (adopt higher standards)

• Workers• Once become proficient in his/her work• Start thinking and contributing for

improvement• Important asset (but often ignored)

• Improvement• Innovation + Kaizen (Management and

cross functional team including people responsible to carry out the work)


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Japanese Perception of Job Function

Western Perception of Job Function

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But time has changed

• More US companies are encouraging Kaizen events• Design Input from cross functional teams

• Product realization processes/Design Transfer

• Total Life Cycle Management

• One of the reason is due to local and international standards emphasize on companies to have a Continuous Process Improvement (CPI) programs• FDA regulations

• ISO standards

• Still there is a tremendous opportunity for improvement• Often there is no or little action as the outcome of Kaizen

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PART Io What is Kaizen?

o What are the key definitions, terminologies that are commonly used with Kaizen?

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3 MUs

• Toyota Production System (TPS) picked three Mus• Widely recognized as a reference to product improvement

program

• Muda (Waste, Uselessness)

• Mura (Unevenness)

• Muri (Overburden)

• Waste reduction is one of effective ways to increase profitability • A process adds value by producing goods or providing a service

that a customer will pay for

• A process consumes resources and waste occurs when more resources are consumed than are necessary to produce the goods or provide the service that the customer actually wants

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Muda

Easy way to remember the 7 wastes is TIMWOOD.

• T: Transportation

• I: Inventory

• M: Motion

• W: Wait

• O: Over-processing

• O: Over-production

• D: Defect

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Mura

• Mura• is avoided through Just In Time (JIT) systems

• Keeping little or no inventory

• Supplying the production process • With the right part,

• At the right time,

• In the right amount, and

• First-in, first out (FIFO) component flow.

• JITs create a “pull system” in which each sub-process withdraws its needs from the preceding sub-processes, and ultimately from an outside supplier

• If parts or material defects are found in one process, the JIT approach requires that the problem be quickly identified and corrected

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Muri

• Muri

• Overburden, unreasonableness• Putting employees or processes under unnecessary stress through

making unreasonable demands on them • Rapid changes in demand

• High rates of output with overtime to meet production targets and

• Working slowly due to exhaustion of components and lower demand

• Putting untrained operators on a process

• Not providing clear instructions

• Not providing the right • Tools,

• Equipment,

• Components and

• environment

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5 Ws and 1 HWHO

• Who does it?

• Who is doing it?

• Who should be doing it?

• Who else can do it?

• Who else should do it?

• Who is doing 3 MUs

WHEN

• When to do it?

• When is it done?

• When should it be done?

• What other time can it be done?

• What other time should it be done?

• Are there any time 3 MUs

WHAT

• What to do?

• What is being done?

• What should be done?

• What else can be done?

• What else should be done?

• 6. What 3-MUs are being done? being done?

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5 Ws and 1 HWHERE

• Where to do it?

• Where is it done?

• Where should it be done?

• Where else can it be done?

• Where else should it be done?

• Where are 3 MUs being done

WHY

• Why does he do it?

• Why do it?

• Why do it there?

• Why do it then

• Why do it that way?

• Are there any 3-MUs in the way of thinking?

HOW

• How to do it?

• How is it done?

• How should it be done?

• Can this method be used in other areas?

• Is there any other way to do it?

• Are there any 3-MUs in the method?

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Autonomation (Jidhoka)

• A word was created to describe a feature of the Toyota production system whereby a machine is designed to stop automatically whenever a defective part is produced.

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Just-in-Time

• A production and inventory control technique that is part of the Toyota Production system

• This is to cut down waste due to excessive inventory

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Kanban

• It is a communication tool in the JIT production and inventory control system• Developed by Taiichi Ohno at Toyota

• A Kanban, or sign board is attached to specific part in the production line signifying the delivery of a given quantity.

• When the parts have been used, the same sign is returned to its origin where it becomes an order for more

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Kaizen Umbrella

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Kaizen Activities at ASQ 0701

• In 2007 • Section was losing over $1500 per month

• There were two options• Increase the registration fee

• From $30 to $55

• Keep loosing and become bankrupt

• If you were the CEO of the company what were you going to do?

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Step 1 – Brain Storming

• Review all expenses• Categorize them

• Look which could be eliminated/reduced without jeopardizing the services

• Do we still need to increase the registration fee

• Validate your potential action plan

• Implement it

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Review Expenses• First and foremost thing caught my eyes was

• News Letter “Scope”• We were paying about $2750 per month to about 2000 members in

our distribution list• Printing• Mailing

• In this age of electronic media, some of the issues discusses• Pros

• Cost Savings if we switch to “eScope” electronic version• Green Initiative (saving trees, chemicals, and transportation)• Real time/Just In Time delivery to unlimited people• Can be accessed from anywhere

• Cons• Emotional value• Some people do not like emails or do not have computers• People were ready for change

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Review Expenses

• Challenges:• Who is going to take care of formatting (typing/Type setting)?

• It is a huge task

• Person should have some experience with Graphic design etc

• Luke Foo (Vice Chair) Volunteered to do that

• Emotional Value/People who do not have computers• We gave the options to members that if they need a hard copy, we can

mail them

• I did a survey • Visited 53 people and asked them if they would prefer an electronic copy or

hard copy or both• 48 people did not want a hard copy (no additional hard copy mail)

• 5 people opted for both

• I asked 5 people if they are asked to pay $2 per copy, would they still consider a hard copy, and all 5 said no and would be OK with E-copy

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Review Expenses• We published both

• Electronic and Hardcopy and asked members if they have any issues with us going to E-copy

• Not a single person responded

• That helped section to save over $32,000 per year• A section that was constantly loosing money started having

positive cash flow• Quality Day – budget before 2007 $6000• Quality Day since 2007 was raised to $16,000 • We did not increase a penny since 2007• We have not only improved Quality of our services e.g. December

Social but kept our cost to minimum• Better awards, recognition, promotion of section events

• New members free dinner registration• Scholarships, Discounts for unemployed and student members

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Review Expenses• In 2007-2008

• We had about $X in our reserves

• In 2009• We had over $1.5X in our reserves

• Today• We have 2X in our reserves

• My questions to those who are part of this section for long time• Have you noticed improvement? Registration, Location, Quality Day

etc.• Have you seen any cost increase? No?• Those who were part of Leadership Committee

• Do you agree with these numbers? Yes

• What is this?• This is what Kaizen is all about

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Next Month

• Part II:• Kaizen Planning

• Management Support

• Team Building

• Implementation

If you have any questions, please email me at [email protected]

In the subject: please type Kaizen

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References

• Kaizen• By Masaaki Imai

• www.sohpec.org/files/ LeanToolsKaizen.ppt

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kaizen from start to finish part i - asq orange empire

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