KAIZEN

TOPS/8D’s

DMAIC/DMADV

70 GLEN ROAD, CRANSTON, RI 02920 T: 401-461-1118 | F: 401-461-1119

www.tedco-inc.com

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Kaizen literally means to break apart or separate for the

better.

Kai Zen

The word itself has been “Kaizened” to change for the

better.

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Kaizen is a system that involves every employee - from

upper management to the cleaning crew. Everyone is

encouraged to come up with small improvement

suggestions on a regular basis.

This is not a once a month or once a year activity. It is

continuous. At Japanese companies, such as Toyota

and Canon, a total of 60 to 70 suggestions per employee

per year are written down, shared and implemented.

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In most cases these are not ideas for major changes.

Kaizen is based on making little changes on a regular

basis: always improving productivity, safety and

effectiveness while reducing waste.

Suggestions are not limited to a specific area such as

production or marketing. Kaizen is based on making

changes anywhere that improvements can be made.

-Western philosophy may be summarized as, "if it ain't

broke, don't fix it."

-The Kaizen philosophy is to "do it better, make it better,

improve it even if it isn't broken, because if we don't, we

can't compete with those who do."

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Kaizen in Japan is a system of improvement that

includes both home and business life. Kaizen even

includes social activities. It is a concept that is applied in

every aspect of a person's life.

In business Kaizen encompasses many of the

components of Japanese businesses that have been

seen as a part of their success. Quality circles,

automation, suggestion systems, just-in-time delivery,

Kanban and 5S are all included within the Kaizen system

of running a business.

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Kaizen is often referred to as a Lean Manufacturing tool. It is really a Japanese cultural philosophy. In a business context, it is a continuous improvement system that uses many available tools or techniques. These include but are not limited to:

Six Sigma 5S VSM

Kanban TPM DOE

SMED Poka-Yoke ANOVA

DMAIC/DMADV TOPS SPC QFD 5 Whys FMEA

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Kaizen creates a constant

slope while innovation

creates a staircase effect.

Once a new system has

been installed as a result

of innovation, it will often

deteriorate unless Kaizen

is utilized to maintain and

improve it.

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There are different types of Kaizen’s. Long term Kaisen’s

or Kaizen Projects are a type of Kaizen at the macro

level. They tend to last weeks or months. Six sigma

projects would fit in this category.

Jishuken are Kaizen projects that are conducted by a

workgroup or a self-directed team. They focus on one

topic such as productivity improvement, and typically last

3 months or so. This could be done by a workgroup but

would most likely involve people who are not workgroup

members also. A Kaizen Breakthrough can be part of a

jishuken activity.

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A Kaizen Breakthrough, Event or Blitz is a term used for

running a one-time special event, normally 3-5 days long, to drastically make changes in a process. It is really a Kaikaku - a radical change while Kaizen means small incremental changes.

The origin of a Kaizen Breakthrough can be traced to the Shingijutsu Consulting Group founded by a group of Toyota engineers in the late 1980's. They were responsible for extending Lean principles to Toyota suppliers. These engineers worked for Taiichi Ohno the originator of the Toyota Production System (TPS).

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The first Kaizen events conducted in the United States

were called “three days and a night” due to the long

hours required. The Shingijutsu Sensei's (masters) were

contracted on a per week basis. Some of the lean

consulting firms today have ties to the Shingijutsu

Consulting Group.

Kaizen Breakthrough at Toyota Motor Corporation (TMC)

is experienced daily. Toyota has done an outstanding job

of implementing the Toyota Production System, a

system that is intolerant to waste in all its forms.

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Kaizen Inspires people to create solutions to issues that

are crucial to improving their environment. These

solutions are team based not management based.

Why do people often behave differently during a Kaizen

Breakthrough experience? Many become infected with a

desire to seek & destroy waste. We have heard of

Kaizen team members that were up all night thinking of

solution to problems they uncovered.

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The common elements of a Kaizen Breakthrough are:

1: A cross-functional team

2: The emphasis on quick action

3: Improvement focused on the gemba (actual work

place)

4: Decisions are made based on facts through direct

process observation

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QC Circles are small groups of individuals who do

similar work (workgroups) who meet on a regular basis

to discuss and analyze problems, consider solutions,

and test them in their daily work. The kaizen focus

originates from, but is not limited to Quality Control (QC).

These are perpetual teams, though the membership

changes as workers transfer in and out of the area.

Kaizen Suggestions are the small and local. They are

most often ideas you can implement yourself. As a rule,

in an effective suggestion system the team leader or

supervisor will review and approve (or provide coaching

to improve the suggestion) within the same day that it is

submitted.

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The 2 unique challenges of a Kaizen Breakthrough for

project teams are elements 3 and 4.

3: Improvement focused on the gemba (actual work

place)

4: Decisions are made based on facts through direct

process observation.

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Challenge with element #3: The Project Gemba.

It's important that the scope be well-defined and

actionable within the 5-day (for example) duration of the

kaizen event. The important thing is to define the project

gemba which are the places where actual work gets

done and where improvement is meaningful.

The scope of a Kaizen event should not encompass an

entire project or an entire value stream, but by nature the

entire project may be considered the gemba. That is the

challenge.

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Challenge with element #4: Direct Process

Observation. As we have defined them, Kaizen Projects

take longer than a day. This can be a challenge for

Kaizen Breakthrough teams.

In Kaizen, you have to go to where the work is done

(genchi or gemba) and observe the facts with the

gembutsu (actual elements of the process). At the

gemba, you need to observe the actual work being done

to get the facts of the current situation.

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You need to be able to observe the process, identify the

waste, make improvements, observe the results,

measure the impact, and document the new process and

remaining action items. All in one week. The risk of not

doing this is that your changes to one observed part of

the project may have unintended consequences on

another part of the work of the project.

In manufacturing terms this would be like observing only

one section of an assembly line and doing kaizen to it,

without understanding the effect this will have on the

next process immediately downstream.

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So unless you have a very large team, or a very short

project, this can be difficult to do and you will need to

limit your scope or run multiple kaizen events to enable

genchi gembutsu for a kaizen breakthrough.

To have a kaizen event on an entire project may be

possible if the project is a very short one. It may also be

possible a similar project is in progress and you can

observe this in a stage-by-stage fashion and use this to

design a new method for a similar project.

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There has been a lot written about how to manage

kaizen events in a step by step fashion. The way to

conduct a kaizen breakthrough for project teams would

not be any different from how you do kaizen in any other

type of work environment. There are three basic phases:

The main aspects of kaizen preparation phase involve:

-setting targets and defining a scope

-selecting the team members by following guidelines to

make sure you have a good cross functional mix

-coordinating resources to make sure the process can be

observed and that supporting data is available

-and communicating with stakeholders.

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The Kaizen week phase is when you come together as

a team to observe, redesign and test new methods and

applying various Lean tools to get rid of waste.

1. Go to the gemba where each member of the project

team does the actual work

2. Identify waste and categorize them by the *7 types to

make sure you understand them

3. Write this down on a Kaizen report

4. Identify the root causes

5. Apply countermeasures

6. Test results

7. Standardize new method

8. Repeat

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The 7 Wastes Some Related Questions

1. Waiting Can some tasks be done in parallel

Rather than in series?

2. Transportation

Can the process be configured to

move product to the next operations

(rather than have people do the

moving)?

3. Processing Itself Can some tasks be combined or

eliminated?

4. Motion

What aids, such as fixtures, new

equipment, or special tools, could

speed up the process?

5. Poor “Quality”

Where can error-proofing be used

to eliminate or reduce errors or

rework?

6. Inventory Is a supermarket needed just-in-case

or can we operate without it?

7. Overproduction Can the operation produce to order

rather than

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To set standards in the case of a project team whose

work is not as easy to fit into a process with a set time,

you may revisit the promises you made and renew them

as "standards" for the work you are responsible for.

Kaizen follow-up phase which includes continuing to

monitor the new process until it is stable, completing

action items required to implement all Kaizen ideas, and

handing over the day to day sustaining and continuous

improvement of the target process to the area managers.

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Seeing Waste During a Kaizen Breakthrough

Project team members may not be used to thinking in terms of waste and value in their individual work, their workgroup, and work stream so an emphasis on understanding the 7 types of waste in the project setting is essential. Examples of wastes within the work of a project team include:

Overproduction due to unclear requirements from the upstream process Waiting time for information from another project team member before work can be completed Inventory of projects or project tasks that are in process Motion of switching from one multi-task activity to another Defects and rework loops Transportation and the delays and loss of information caused by hand-offs

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Advantages of Kaizen Breakthrough for Project

Teams

Experience has shown that during a Kaizen

Breakthrough, a team gets more improvement done in 5

days with 8 people than you can with the same people

putting in the same 50 hours extended over 2 months, as

they would in a project.

Decisions are made in real-time based on observed facts

and new methods are tried during a Kaizen

Breakthrough, taking the place of many useless

meetings that are conducted away from the gemba in a

typical project.

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The cross-functional team aspect of a Kaizen

Breakthrough allows you to look at things from a new

perspective rather than just your own specialist

perspective or role within the project, which can be

powerful in a project team environment where these

functions are working together already.

A Kaizen Breakthrough complements project teams well

because projects team typically lack speed and a bias

for action, while Kaizen Breakthroughs can fail due to a

lack of follow up and structure, which the project

management can provide.

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Kaizen Breakthroughs are a good way to give a "boost" to a traditional project by rapidly accomplishing some core section of work as a team in a short period of time while improving communication and clarifying customer-supplier requirements.

In the long view all organizations are temporary. Project teams are created with a termination date in mind. A kaizen team is by nature temporary, forming to solve problems, set standards and to disband typically after a week.

Temporary organizations such as these need to learn to be effective quickly within their short lifespan. Learning and applying the principles that make kaizen teams successful can help make temporary organizations such as project teams more effective also.

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Getting Started With Kaizen

For most American companies Kaizen involves a

significant change in the corporate culture. This is key.

The attitudes of employees - from top management

down to new hires will need to change.

Kaizen needs to become something all employees do

because they want to, and because they know it is good

for them and the company.

It can not be something employees do because

management dictates that it be done. That means that if

management isn't ready to lead by example, Kaizen will

not get off the ground.

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Employee training and communication is important. Combined with that, direct involvement by the management is critical. For example, a manager spending a week on the shop floor working with employees to help and encourage them to develop suggestions will help.

That manager should also ensure employees see their suggestions acted on immediately. Suggestions should not be implemented next month or next week, but today. In some cases, a suggestion submitted in the morning can be implemented that afternoon, or sooner.

Keep employees informed about what happens with their suggestions. Don't have suggestions disappear into a management "black hole."

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To get Kaizen started it can be helpful to bring in outside experts. They can work in your facility identifying problems that those close to the work may not see. This serves as a "seed" allowing employees to see how Kaizen works and to experience the benefits of Kaizen.

A significant obstacle to Kaizen in many corporations is that problems are seen as negatives. We don't like problems. Someone who is associated with a problem is likely to be negatively impacted (a lower raise, missed promotion, or even fired). In Kaizen, problems are opportunities to improve. With Kaizen we want to find, report, and fix problems. Kaizen encourages and rewards the identification of problems by all employees.

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To encourage the submission of suggestions, a part of each supervisor's evaluation should be based on the number of suggestions submitted by those they supervise. Don't evaluate employees on the number of suggestions they submit, evaluate your supervisors and managers and how well they are doing at getting those who work for them to actively participate in Kaizen.

Managers should develop methods to help create suggestions and increase the number of suggestions. For example, set up teams of five to 12 people to evaluate work areas, processes, quality, productivity, and equipment availability/reliability. The team then makes suggestions for improvements, and they may even implement those improvements.

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● Train employees in using Kaizen tools such as 5S,

Kanban, and Line Balancing.

● Keep in mind that Kaizen is about action. Taking action

to generate suggestions, and taking action to implement

those suggestions immediately.

● Kaizen is focused on making small improvements on a

continuous basis.

● What Are The Benefits Resulting From Kaizen?

● Kaizen involves every employee in making change--in

most cases small, incremental changes. It focuses on:

-identifying problems at their source

-solving them at their source

-changing standards to ensure the problem stays solved

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It's not unusual for Kaizen to result in 25 to 30 suggestions per employee, per year, and to have over 90% of those implemented. For example, Toyota is well-known as one of the leaders in using Kaizen. In 1999 at one U.S. plant, 7,000 Toyota employees submitted over 75,000 suggestions, of which 99% were implemented.

These continual small improvements add up to major benefits. They result in improved productivity, improved quality, better safety, faster delivery, lower costs, and greater customer satisfaction. On top of these benefits to the company, employees working in Kaizen-based companies generally find work to be easier and more enjoyable--resulting in higher employee moral and job satisfaction, and lower turn-over.

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With every employee looking for ways to make

improvements, you can expect results such as:

-Kaizen Reduces Waste in areas such as inventory,

waiting times, transportation, worker motion, employee

skills, over production, excess quality and in processes.

-Kaizen Improves space utilization, product quality, use

of capital, communications, production capacity and

employee retention.

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Kaizen provides immediate results. Instead of focusing

on large, capital intensive improvements, Kaizen focuses

on creative investments that continually solve large

numbers of small problems.

Large, capital projects and major changes will still be

needed, and Kaizen will also improve the capital projects

process, but the real power of Kaizen is in the on-going

process of continually making small improvements that

improve processes and reduce waste.

Problem Solving Techniques

TOPS

8D’s

DMAIC/DMADV

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Companies are often surprised

to learn that as much as 80% of

their resources are typically

allocated to problem solving

activities – sometimes better

known as fire-fighting.

Everyone knows that prevention is better than cure, but

finding a way of escaping the problem solving spiral has

not been easy. Inevitably this infers a greater allocation of

resources for more planning and better prevention. But how

can more resources be allocated to prevention when they

are being constantly used for putting out fires?

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Originally developed at Ford Motor Company, 8D was introduced in 1987 in a manual titled "Team Oriented Problem Solving" (TOPS). As part of the Ford Lean Manufacturing initiative, this course was written at the request of senior management of the automaker's Power Train organization, which was facing growing frustration at the same problems that were recurring year after year.

The focus of this system was to use this approach in a team environment. Teams are to be cross-functional and include members from both the manufacturing organization as well as design engineering.

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The 8D process evolved from Dr. Deming’s Plan-Do-

Check-Act (PDCA) cycle, and the Kepner Tregoe Problem Solving Decision Making (PSDM) process.

The common thread between all three techniques is the importance of focusing on finding the real reason for the problem (Root Cause Analysis) before looking for possible solutions.

Auto repair is a case in point. A “parts changer”, if not told what to repair or replace, just starts replacing parts until the problem goes away, while a true auto mechanic knows how to analyze what is causing the problem before taking any corrective actions.

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The Ford 8D’s (disciplines) process is most effective in

dealing with chronic recurring problems, primarily defects or warranty issues. They were never intended to replace or stand as a systemic quality system. The 8Ds' focus was to deal with problems and discover the weaknesses in the management systems that allowed the problem to occur In the first place. In ISO terms, these are CAR’s and PAR’s.

The real benefit would come by changing how management decisions allowed the problem to happen. The problem is merely a symptom of a greater systemic management issue.

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Global 8D problem solving is made up of a detection cycle and a prevention cycle. It defines a corrective action methodology. The 8D’s are:

D#1 - Build the Team D#2 - Describe the problem. D#3 - Develop an Interim Containment Action D#4 - Define / Verify Root Cause D#5 - Verify Corrective Action D#6 - Implement / Validate Permanent Corrective Action D#7 - Prevent Recurrence D#8 - Recognize the Team

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Increasingly, these days, companies practicing lean manufacturing are requiring their employees to also understand the 8-Discipline approach (Eight D) to team-based problem solving. These essentially present a standard methodology for data analysis and statistical thinking and is a key lean tool.

Discipline 1 – Build The Team - Assemble a small team of people with the right mix of skills, experience and authority to resolve the problem and implement solutions. Ensure these people have the time and inclination to work towards the common goal. Get your people “on board” by using team building tools such as icebreakers and team activities.

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Discipline 2 – Describe the Problem - How can you fix it if you don’t know what’s broken? The more clearly you describe the problem, the more likely you are to resolve it. Be specific and quantify the problem where possible. Clarify what, when, where and how much e.g. what is the impact to customers? Consider using checklists from professional 8d problem solving suppliers to stimulate and open up your thinking.

Discipline 3 – Develop an Interim Containment Action - What “sticking plaster” can you use until you figure out what’s really causing the problem? Implement a temporary fix and monitor and measure the impact to ensure it’s not making things worse. Remember to keep going, as a sticking plaster will never cure a broken leg!

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Discipline 4 – Define / Verify Root Cause - There will be many suspects causing the problem, but usually only one culprit. The key is figuring out which one. This is where it can get a bit numerically challenging, as statistical tools are often used to get a deep understanding of what is going on in a process. Perform a Root Cause analysis by asking 5 Whys.

The 5 Whys is a technique used in the Analyze phase of the Six Sigma DMAIC methodology. It's a great Six Sigma tool that doesn't involve data segmentation, hypothesis testing, regression or other advanced statistical tools, and in many cases can be completed without a data collection plan.

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By repeatedly asking the question "Why" (five is a good rule of thumb), you can peel away the layers of symptoms which can lead to the root cause of a problem. Very often the ostensible reason for a problem will lead you to another question. Although this technique is called "5 Whys," you may find that you will need to ask the question fewer or more times than five before you find the issue related to a problem.

Benefits Of The 5 Whys

• Help identify the root cause of a problem.

• Determine the relationship between different root causes of a problem.

• One of the simplest tools; easy to complete without statistical analysis.

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When Is 5 Whys Most Useful?

• When problems involve human factors or interactions.

• In day-to-day business life; can be used within or without a Six Sigma project.

How To Complete The 5 Whys 1. Write down the specific problem. Writing the issue helps you formalize the problem and describe it completely. It also helps a team focus on the same problem. 2. Ask Why the problem happens and write the answer down below the problem. 3. If the answer you just provided doesn't identify the root cause of the problem that you wrote down in step 1, ask Why again and write that answer down. 4. Loop back to step 3 until the team is in agreement that the problem's root cause is identified. Again, this may take fewer or more times than five Whys.

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5 Whys Examples Problem Statement: Customers are unhappy because they are being shipped products that don't meet their specifications. 1. Why are customers being shipped bad products? - Because manufacturing built the products to a specification that is different from what the customer and the sales person agreed to. 2. Why did manufacturing build the products to a different specification than that of sales? - Because the sales person expedites work on the shop floor by calling the head of manufacturing directly to begin work. An error happened when the specifications were being communicated or written down.

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3. Why does the sales person call the head of manufacturing directly to start work instead of following the procedure established in the company? - Because the "start work" form requires the sales director's approval before work can begin and slows the manufacturing process (or stops it when the director is out of the office). 4. Why does the form contain an approval for the sales director? - Because the sales director needs to be continually updated on sales for discussions with the CEO.

In this case only four Whys were required to find out that a non-value added signature authority is helping to cause a process breakdown.

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Let's take a look at a slightly more humorous example modified from Marc R.'s posting of 5 Whys in the iSixSigma Dictionary.

Problem Statement: You are on your way home from work and your car stops in the middle of the road. 1. Why did your car stop? - Because it ran out of gas. 2. Why did it run out of gas? - Because I didn't buy any gas on my way to work. 3. Why didn't you buy any gas this morning? - Because I didn't have any money. 4. Why didn't you have any money? - Because I lost it all last night in a poker game. 5. Why did you lose your money in last night's poker game? - Because I'm not very good at "bluffing" when I don't have a good hand.

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As you can see, in both examples the final Why leads

the team to a statement (root cause) that the team can

take action upon. It is much quicker to come up with a

system that keeps the sales director updated on recent

sales or teach a person to "bluff" a hand than it is to try

to directly solve the stated problems above without

further investigation.

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5 Whys And The Fishbone Diagram

The 5 Whys can be used individually or as a part of the

fishbone (also known as the cause and effect or

Ishikawa) diagram. The fishbone diagram helps you

explore all potential or real causes that result in a single

defect or failure. Once all inputs are established on the

fishbone, you can use the 5 Whys technique to drill down

to the root causes.

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"If you don't ask the right questions, you don't

get the right answers. A question asked in the

right way often points to its own answer. Asking

questions is the ABC of diagnosis. Only the

inquiring mind solves problems."

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Discipline 5 – Verify Corrective Action - You know what’s causing the problem – how are you going to fix it? Test to make sure that your planned fixes have no undesirable side effects. If so, are there complementary fixes that eliminate side effects? If your solution just isn’t feasible, you can still change your mind before you move to the next “go live” stage.

Discipline 6 – Implement Permanent Fix - Go for it! Implement your permanent and complementary fixes and monitor to make sure it’s working. Usually you will get it right, but if not, go back a few steps and try again – the culprit is there to be caught!

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Discipline 7 – Stop It Happening Again - If you’ve gone to all this trouble, you don’t want the problem to sneak up on you again! Prevent recurrence of the problem by updating everything related to the process e.g. specifications, training manuals, or “mistake proofing” the process.

Discipline 8 – Celebrate Success - Teamwork got you this far, so put on your collective party shoes and celebrate your success. Going public with success spreads knowledge and learning across your organization, and let’s face it, we all like a little recognition now and again.

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The 8d problem solving process is used by big businesses such as Ford, Shell and Toyota. The key is focusing on facts and not opinion, being disciplined enough to follow the process and remembering that a good team are worth more than the sum of the individuals. Do that, and you’ll save time, money and lift your employees

For most manufacturing organizations, routine problem solving will not improve the product and/or process. A more systemic overall quality initiative, such as the Six

Sigma DMAIC or DMADV process is still required.

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DMAIC is used to improve an existing process that is not performing as expected.

Define the goals of the improvement activity. The most important goals are obtained from customers. At the top level the goals will be the strategic objectives of the organization, such as greater customer loyalty, a higher ROI, increased market share, or greater employee satisfaction. At the operations level, a goal might be to increase the throughput of a production department. At the project level goals might be to reduce the defect level and increase throughput for a particular process.

Measure the existing system. Establish valid and reliable metrics to help monitor progress towards the goal(s) defined at the previous step. Begin by determining the current baseline. Use exploratory and descriptive data analysis to help you understand the data.

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Analyze the system to identify ways to eliminate the gap between the current performance of the system or process and the desired goal. Use statistical tools to guide the analysis.

Improve the system. Be creative in finding new ways to do things better, cheaper, or faster. Use project management and other planning and management tools to implement the new approach. Use statistical methods to validate the improvement.

Control the new system. Institutionalize the improved system by modifying compensation and incentive systems, policies, procedures, MRP, budgets, operating instructions and other management systems. You may wish to utilize standardization such as ISO 9000 to assure that documentation is correct. Use statistical tools to monitor stability of the new systems.

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DMADV is used when developing new processes or correcting existing processes requiring more than incremental improvement.

Define the goals of the design activity. What is being designed? Why? Use Quality Function Deployment (QFD) or Analytic Hierarchical Process to assure that the goals are consistent with customer demands.

Measure the performance metrics critical to stakeholder's. Translate customer requirements into project goals.

Analyze the design options available for meeting the goals. Determine the performance of similar best-in-class designs.

Design the new product, service or process. Use predictive models, simulation, prototypes, pilot runs, etc. to validate the design concept's effectiveness in meeting goals.

Verify the design's effectiveness in actual use.

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KAIZEN

TOPS/8D’s

DMAIC/DMADV

70 GLEN ROAD, CRANSTON, RI 02920 T: 401-461-1118 | F: 401-461-1119

www.tedco-inc.com