kaizen intro
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kaizen introTRANSCRIPT
Welcome to
Kaizen
Monday; Sept 15, 2003
An Improvement Philosophy
Over-manned Flight
Employees/Aircraft Passenger/EmployeeAir-India 664 153Singapore airlines 341 441Air France 277 426Emirates 267 703British Airway 227 573Lufthansa 185 714United Air lines 174 953Japanese Airlines 146 1589Industry Average 162 986
Source : BW, December 9, 2002
An Improvement Philosophy
Always Good
Continual Improvement
Change For the better
School Wisdom
Understanding
Implied Meaning
Harnessing the Godliness of Human being
Understanding
Why Keep Moving?Why Keep Moving?
SurvivalSurvival
You may be thinking that you are on a
right track, but if you keep on sitting there
some one will over run you.
A Japanese saying
Cost Of Quality
Time
Prevention cost
Appraisal cost
Cos
t of
Con
for m
ance
Total cost of Quality
Lost opportunityExceeding requirementInternal +
External Failure
Cos
t of N
on-
Con
for m
ance
Cos
t of L
ost
Opp
ortu
nity
Cost Of Quality
Operating Cost
Profit Cost of Quality, 20-30 %
Kaizen is Journey from
Event Cause
ResultProcess
Gross Micro
Understanding
Enforcement of change Inducement of
change
Kaizen is : Process improvementObservationUse of new ParadigmShort timeZero investmentHuman development & EmpowermentProfit & Saving – Plenty
Understanding
The great evolutionist,
Dr David Starr Jordan said ------
Try to overcome Imperfection and
If you succeed,
Other imperfections will come to the surface
Don’t complain, ---
That is the nature of the world
Keep on striving and correcting Until you reach the state of absolute perfection.
Imperfection Is Inherent in Nature
Kaizen is : Process improvementObservationUse of new ParadigmShort timeZero investmentHuman development & EmpowermentProfit & Saving – Plenty
Understanding
Use of New Paradigms :
Change over from Batch production to single piece production
Fish giving multitude of Eggs One Egg at a time
Use of New Paradigms :
Shojinka (unification of labour)
Overlapping of responsibility
Use of New Paradigms :
Team rather than individuals are recognised
Making your machine perfect
Kaizen is : Process improvementObservationUse of new ParadigmShort timeZero investmentHuman development & EmpowermentProfit & Saving – Plenty
Understanding
It is a positive attitude through
Existing operation has always a lot of room for improvement
Existing facilities & methods can always be improved by effort
The accumulated improvements makes big difference
Kaizen Mind
Kaizen Umbrella
TQMJITQC CircleSuggestion systemAutomation
TPM5SQuality ImprovementZero defectSmall group activity
Kaizen
Division of LabourAdam Smith, 1776
Alfred SloanMgmt Guru (Manager can
control from Hq by controlling Finance & Production number)
Henry FordProdn Guru (Work was
brought to worker in tiny repeatedly work; work was to install single part)
Major Kaizen Concepts
Kaizen and Management
Process Vs Result
Following the PDCA / SDCA cycle
Putting Quality First
Speak with Data
The next process is the Customer
Kaizen Grid – Japanese Way
Top
Middle
Supervisor
Worker
Impro
vement
Impro
vement
Impro
vement
Impro
vement
Maintenance
Maintenance
Maintenance
Maintenance
Concern
Top
Middle
Supervisor
Worker
Job Perception Elsewhere (Western)
Concern
Maintain
Maintain
Maintain
MaintainIm
prove
Worst CompaniesWorst Companies
Top
Middle
Supervisor
Worker Mai
ntai
nConcern
Culture at Worst Companies
•No Kaizen involvementNo Kaizen involvement
•Change is forced by market Change is forced by market
conditionsconditions
• DirectionlessDirectionless
Breakdown between Maintenance, Kaizen & Improvement
Concern
Improve
Kaizen
Maintenance
Top
Middle
Supervisor
Worker
Type of Improvement
Improvement
KaizenSmallincrement
InnovationDrasticincrement
Ideal Pattern of Innovation
Impr
ovem
ent
Time
Innovation
Innovation
Innovation
SN Criteria Kaizen Innovation
1 EffectLong termLong lastingUn-dramatic
Short termDramatic
2 Pace Small steps Big steps
3Timeframe
Continuous Intermittent
4 Change Gradual Abrupt
Kaizen Vs Innovation
Kaizen Vs Innovation
SN Criterion Kaizen Innovation
5 InvolvementEverybody Select few
6 ApproachGroup effortSystemsapproach
Ruggedindividual ideasand effort
7 ModeMaintenanceand improve
Scrap andrebuild
8 SparkConventionalknow how
Technologicalbreakthrough
Kaizen Vs Innovation
SN Criterion Kaizen Innovation
9Practicalrequirement
LittleinvestmentGreat effort tomaintain
LargeinvestmentLittle effort tomaintain
10Effortorientation
People Technology
11Evaluationcriteria
ProcessBetter result
Results forprofit
12 AdvantagesSlow growtheconomy
Fast growtheconomy
Parkinson’s Law
An organisation, once it An organisation, once it
has built its structure, has built its structure,
begins its declinebegins its decline
Effect of Parkinson’s LawIm
prov
emen
t
Time
What actually should be
Maintenance
What actually is
Actual Pattern of InnovationIm
prov
emen
t
Time
Decline
Decline
Belief of Kaizen Strategist
Standards are tentativeStandards are tentative
Through continuous effort, Through continuous effort, one standard leads to one standard leads to anotheranother
Standards are tentativeStandards are tentative
Through continuous effort, Through continuous effort, one standard leads to one standard leads to anotheranother
Innovation + KaizenIm
prov
emen
t
Time
Kaizen
Continuousnew standards
Innovation
Innovation
Major Kaizen Concepts
Kaizen and Management
Process Vs Result
Following the PDCA / SDCA cycle
Putting Quality First
Speak with Data
The next process is the Customer
Major Kaizen Concepts
Kaizen and Management
Process Vs Result
Following the PDCA / SDCA cycle
Putting Quality First
Speak with Data
The next process is the Customer
P D C A Cycle for Improvement
Act Do
Plan
Check
S D C A Cycle for Maintainance
Act Do
Standardize
Check
A PC D
A SC D
A PC D
A SC D
KAIZEN
KAIZEN
Maintenance
Maintenance
PDCA/SDCA CyclePDCA/SDCA Cycle
A P
C D
A P
C D
A S
C D
A S
C D
STANDARDIZATION
KAIZEN
STANDARDIZATION
KAIZEN
IMPROVEMENT
Never Ending Improvement
Solve
Takenew problem
Standardise
Major Kaizen Concepts
Kaizen and Management
Process Vs Result
Following the PDCA / SDCA cycle
Putting Quality First
Speak with Data
The next process is the Customer
Quality & Productivity
Definition of Kaizen
Putting Quality First
• Quality
• Cost & Delivery
Quality
Two Sides of a Coin
QualityQuality&&
ProductivityProductivity
QualityQuality&&
ProductivityProductivity
HeadHead
KaizenKaizenKaizenKaizen
TailTail
We don’t know what we don’t know?
We can’t do what we don’t know?
We won’t know until we measure
We don’t know measure what we don’t value
We don’t value what we don’t measure.
Speak With Data
What TQM (KAIZEN) Practitioners Do?
Work with hard dataWork with hard data
and not with, repeat not withand not with, repeat not with
Haunches and gut feelingsHaunches and gut feelings
Kauro Ishikawa’s Advice
• We must talk with facts and data
• … when you see data doubt them
• … when you use measuring instrument,
doubt it.
• … when you carry chemical analysis doubt it.
Reminder from Kauro Ishikawa Reminder from Kauro Ishikawa
Type of dataType of data
- False data- False data
- Mistaken data- Mistaken data
- immeasurable data- immeasurable data
Basic Philosophy of Quality Improvement
Whatever measured must be recorded
Whatever recorded must be analysed
Whatever analysed must be acted upon
Using DataUsing DataUsing DataUsing Data
Skill used in getting information from
data can make difference between
•Success and failureSuccess and failure
In God we believe,
Everybody else should bring Data.
Florida Light & power?
One Excellent Source of Data
Customer Complaints
Rich source for Kaizen
- Facts about customer pains
- Free of cost
Major Kaizen Concepts
Kaizen and Management
Process Vs Result
Following the PDCA / SDCA cycle
Putting Quality First
Speak with Data
The next process is the Customer
GEMBA
Management Support
Customer’s Expectation
Customer’s Satisfaction
House of Gemba Management
Profit Mgmt
Quality &
Safety Mgmt
Logistic (Delivery)Mgmt
Worker’s operation
InformationEquipment Product & Material
STANDARDIZATION
Good House Keeping ( 5 S)
MUDA ELIMINATION
Team Work Morale EnhancementSelf Discipline
Visual ManagementQC Circle
Suggestion
Cost Mgmt
Did it happen, because
We don’t have a Standard ?
Standards are not followed ??
Standards are not
adequate ???
Standardization
Seiri Seiton Seiso Seiketsu Shitsuke
3 M
MUDA (Waste)
MURI
(Strain / difficult task)
MURA (Irregularity, discrepancy)
Eliminating 3 M
MUDA
= Waste
People waiting for an item that has not been delivered, yet to deliver
Any human activity which absorbs resources but creates no value.
Movement of item/people from one place from other without any purpose
Goods/services which don’t meet the need of customer
Mistakes which requires re-works, rectification
Processing steps which are not needed
House of Gemba Management
Profit Mgmt
Quality &
Safety Mgmt
Logistic (Delivery)Mgmt
Worker’s operation
InformationEquipment Product & Material
STANDARDIZATION
Good House Keeping ( 5 S)
MUDA ELIMINATION
Team Work Morale EnhancementSelf Discipline
Visual ManagementQC Circle
Suggestion
Cost Mgmt
Golden Rules of Gemba Management
In Problem, first Go to Gemba
Check Gembutsu
Take temporary measures
Find Root cause
Stanadardise to prevent reoccurance
Golden Rules of Gemba Management
Check Gembutsu
Tool, Machine, fixture
Return good
Complaining customer
Golden Rules of Gemba Management
In Problem, first Go to Gemba
Check Gembutsu
Take temporary measures
Find Root cause
Stanadardise to prevent reoccurance
Golden Rules of Gemba Management
In Problem, first Go to Gemba
Check Gembutsu
Take temporary measures
Find Root cause
Stanadardise to prevent reoccurance
Golden Rules of Gemba Management
Find Root cause
Ask WHY as many times?
5 W & 1 H
(why, where, when, what, who,
how)
Excessive time spentOn correspondence
Too Many Errors Too Many Reviews
Typists Need More Training
Need Better Equipment
StandardsNot Clear
Fear ofTop Boss
Why – Why diagram
Six Honest
Serving
Man
Rudyard Kipling, 1865 -1936from "The Elephant's Child" in Just So
Stories
I keep six honest serving men (They taught me all I knew );
Their names are What and Why and When
And How and Where and Who. I send them over land and sea,
I send them east and west; But after they have worked for me,
I give them all a rest.
The Five Ws and The One H
Who What Where1. Who does it?2. Who is doing it?3. Who should be doing it?4. Who else can do it?5. Who else should do it?6. Who is doing 3-Mus?
1. What to do?2. What is being done?3. What should be done?4. What else can be done?5. What else should be done?6. What 3-MUs are being
done?
1. Where to do it?2. Where is it done?3. Where should it be done?4. Where else can it be done?5. Where else should it be
done ?6. Where are 3- MU s being
done?
Conscious Incompetence
Conscious Competence
Unconscious Incompetence
Unconscious Competence
1
3
4
2
Improvement Ideas
• Japan: 24 improvement ideas in writing per employee each year
• U.S. : Average less than one
• United Kingdom: one idea every six years
• India: Average 2-3 ideas per employee per annum (Nestle)
Arch Enemy of Kaizen
Kaizen’s Stress on People
If you want one year of prosperity, grow seeds,
If you want ten years of prosperity, grow trees,
If you want one hundred years of prosperity, grow people"
Chinese proverb
Kaizen Websites
www.gemba.comwww.kaizen.orgwww.papakaizen.com