KAIZEN Contents of the Kaizen resource guide by Graphic Products, Inc. ORIGIN.............................................................................. pg 1 Origin of Kaizen WESTERN PHILOSOPHIES............................................. pg 2 . Traditional Western Business Practices -- Common Western Philosophies KAIZEN PHILOSPHIES.................................................... pg 4 Kaizen is Different -- Basic Kaizen Philosophies pg 1 BENEFITS......................................................................... pg 5 Benefits & Application of Kaizen -- Success Stories -- Application Elements -- Ranking -- Establishing Procedures -- Incentives & Rewards -- Customer Focus Origin of Kaizen SUSTAINING.................................................................. pg 11 Standardizing & Sustaining Kaizen -- Integration -- Issue Resolution -- Kaizen Leaders pg 11 Issue Resolution TORO Kaizen Kit available from DuraLabel See page 3 The information presented in this guide was obtained from sources whom we deem reliable; Graphic Products, Inc. has made every effort to ensure this information is correct. However, we do not guarantee accuracy or completeness. Graphic Products, Inc. makes no representations or warranties of any kind, express or implied. Information in this guide is subject to change without notice. Except as expressly provided for in writing, the liability of Graphic Products, Inc. arising from the use of this guide is specifically excluded and Graphic Products, Inc. disclaims all warranties and any liability for damages of any kind and any liability, whether in contract, tort under statute or otherwise, for any injury, damage or loss whatsoever. No reliance should be placed on information contained in, implied by or inferred from this guide. Users of this guide should verify all information with ANSI and OSHA sources directly.
Origin ORIGIN OF KAIZEN Since the start of the industrial revolution, managers of facilities have spent a great deal of time looking for new ways to improve production and decrease costs. For more than 30 years, Kaizen has been a popular and successful management philosophy used to help facilities attain efficiency and production goals. Kaizen was first developed in Japan just after WWII. The literal translation is good (zen) and change (kai). The philosophic translation is to motivate people so they continuously improve their surroundings. As an industrial term Kaizen means the continuous search for imperfections and the willingness to continuously make small changes to correct these imperfections. The roots of Kaizen extend back to the late 1940s when Japans economy was still reeling from WWII. As we now know, Japan rapidly developed into an industrial power and is viewed today as one of the worlds most prosperous countries. By the late 1970s Japan was outproducing most other countries with better overall quality and pricing. Today, Japanese facilities are renowned for producing the highest-quality products and providing the world some of the most advanced innovations. In the years following the war, the U.S. provided aid to support Japans reconstruction. A number of prominent American industrial consultants were asked to participate in the effort. These consultants introduced many new efficiency methods to struggling facility managers. The managers embraced these methods and improved upon them by integrating many of their own cultural and business philosophies. This gave these methods broader application in their own facilities. Just like many other popular lean manufacturing methods and systems, Kaizen grew from this same seed. Since its early beginnings, the Kaizen philosophy has helped many Japanese facilities attain the highest levels of success. Today, Kaizen is helping increase profits and efficiencies at facilities around the globe. Success, however, takes time. Managers and workers must be open to accepting change and supporting the philosophy in all DuraLabel.com Kaizen is being successfully applied in a wide range of industries around the globe. With a willingness to change, most industrial facilities can successfully apply this philosophy. their work. Many roles and responsibilities will change with implementation. Management will turn to workers for ideas and workers will have greater responsibilities helping their facility succeed. Where Kaizen is successfully applied, managers support workers by helping them find and implement new methods of efficiency. Even top executives are expected to actively participate in Kaizen. This ensures all employees are unified in their effort to constantly improve their facility. Compared with many traditional Western management methods, Kaizen is often well accepted by workers from the very start. Their proactive participation and involvement in a facilitys success naturally promotes its continued application. 877.534.5157 5
Western Philosophies TRADITIONAL WESTERN BUSINESS PRACTICES Traditional Western philosophies and methods have been used for centuries and were most successful during the Industrial Revolution. However, newer management philosophies and methods have proven these are less effective. At the core of traditional Western business philosophies is division, which is a segregation by work type. Western businesses generally segregate management, labor, and specializations into separate divisions. Most managers in Western businesses are seen as the leaders. They develop the ideas, propose them, and implement them. Their role is to be in charge. Managers in these businesses generally spend much of their time working in an office and are usually not expected to make regular visits to work areas. In some facilities, this may serve as a buffer so managers have space to work. This can, however, actually reduce communication and, in turn, reduce their effectiveness to manage. Common Western Philosophies Innovation: Developed by those designated to do so Reliability: Good machinery means reliable production Performance: Managers only visit work areas to make improvements Specialization: Learning other jobs may result in a lay-off due to redundancy Bottom Line: Changes are implemented only when money can be saved Repetition: The more you do the same job, the better you get at it Tradition: If it aint broke, dont fix it Direction: Wait for management to tell you what to do or produce Profit Sharing: Rewards go to employees producing measurable profits (e.g. Sales) Inventory: Inventories are well stocked to avoid running out Quality: Good designers produce quality products 6 Not My Job: Venturing outside of your job description may result in an additional expected duty Loyalty: Always take care of Number One 877.534.5157 DuraLabel.com
Kaizen Philosophies BENEFITS KAIZEN IS DIFFERENT In recent history, Kaizen-influenced business philosophies have helped to shape new roles for much of the worlds management and labor. As a result, many facilities are experiencing greater efficiencies and organization than ever before. More and more facilities are finding that Kaizen increases efficiency and lowers costs. These vary from traditional Western business methods and help to create an environment in which all employees participate in finding efficiency improvements. Workers are never afraid to contribute to their facilitys success under Kaizen. Kaizen takes worker empowerment seriously. In facilities where Kaizen is applied, workers arent just encouraged to contribute ideas for facility improvementsits expected. The philosophy is shared by all and creates an atmosphere where teamwork and achievement are promoted. The benefits of switching to Kaizen include increased production, morale, and communication. In Kaizen, all suggested ideas are reviewed by management and given serious consideration without preferential treatment. Ideas found to have merit are quickly implemented. Rapidly turning good ideas into action motivates workers to constantly strive for improvement and work to keep their facility competitive. Kaizen encourages regular communication between workers and management. Management supports this by remaining open to new ideas from all employees. Basic Kaizen Philosophies Innovation: Comes from anyone and ideas with merit are supported by all Reliability: Machine operators maintain and improve their own machines for greater reliability Performance: Managers spend time in work areas so performance improvements are well-communicated Specialization: Learn your job first and then learn everything related to your job Bottom Line: Cost reductions involve many small steps by both management and labor Repetition: The more one improves, the more a facility saves, the more employees are compensated Tradition: A company should only have a tradition for change Direction: Rely on visual communication to tell you what to do next Profit Sharing: All employees are rewarded for finding efficiency improvements that increase profits Not My Job: Find ways to make your job easier and more interesting Inventory: Lower inventories reduce waste and help uncover flaws in the system Goals: Managements goal is the same as yours Quality: Quality comes from constant attention to all levels of product design, development, and production DuraLabel.com Loyalty: Lookout for your company 877.534.5157 7
Benefits BENEFITS BENEFITS & APPLICATION OF KAIZEN Where Kaizen is properly applied, facilities will experience many benefits. Managers often become more effective leaders, workers are motivated and employees begin to operate as