Kaizen

KaizenThe Key to Japans Competitive Success

Presented By:

Dr. Yasser MostafaQA Manager Al Yasra Food Co.Speaker Profile:Dr. Yasser MostafaCertified Quality Manager ASQLA ISO 9001, 14001 & 22000Member in Kaizen Institute EgyptB. Sc. in Veterinary Medicine from Cairo University.Over more than 12 years, with accumulated experience in quality field in Egypt, Saudi Arabia and Kuwait.Currently he is Quality Assurance Manager in Al Yasra Food Co. Member International Register of Certificated Auditors (IRCA)Member in American Society For Quality (ASQ)Member in Egyptian Society For Quality (ESQ)Contents:6. The KAIZEN Approach to Problem Solving5. KAIZEN Management4. KAIZEN, The Practice3. KAIZEN by Total Quality Control2. Improvement East and West7. Changing the Corporate Culture1. KAIZEN, The ConceptWhat is KAIZEN?Kaizen translated literally means 'Change for Good'.Kai to take apart; to change Zen goodKaizen: to take apart and change for good

Masaaki Imai- known as the developer of KaizenKaizen originated in Japan in 1950First, it was been introduced and applied by Imai in 1986 to improve efficiency, productivity and competitiveness in Toyota

If you learn only one word of Japanese, make it KAIZEN.

Masaaki Imai

IntroductionIt is a planned and controlled change to achieve the next step in continual improvementIt moves you from the existing Current State toward the defined Future State you have established as your goal.Kaizen is a process of continuous incremental improvement.The kaizen blitz is a five-day continuous improvement activity focused on a very specific process.True Kaizens are typically done as a focused blitz: A point in time team effort rather than a gradual metamorphosis over time.Why Kaizen Events?KaizenCurrent StateFuture State (Lean)Kaizen drives the improvements which lead to a leaner business operating systemTwo elements of KAIZENThere are two elements that construct KAIZEN:Improvement/Change for the better Ongoing/Continuity/Maintenance

Lacking one of those elements would not be considered KAIZEN.

The philosophy of Kaizen has kindled considerable interest among researchers because it increases productivity of the company and helps to produce high-quality products with minimum efforts.Kaizen PhilosophyKaizen, also known as continuous improvement, is a long-term approach to work that systematically seeks to achieve small, incremental changes in processes in order to improve efficiency and quality. Kaizen can be applied to any kind of work, but it is perhaps best known for being used in lean manufacturing and lean programming. If a work environment practices kaizen, continuous improvement is the responsibility of every worker, not just a selected few.

Kaizen can be roughly translated from Japanese to mean "good change." The philosophy behind kaizen is often credited to Dr. W. Edwards Deming. Dr. Deming was invited by Japanese industrial leaders and engineers to help rebuild Japan after World War II. He was honored for his contributions by Emperor Hirohito and the Japanese Union of Scientists and Engineers.

Kaizen PhilosophyWhat is Kaizen Events?

Kaizen activities that address issues over a period of one week had become the industry norm and they had been named as Kaizen events. These small models are used to understand problems and issues in the business processes, arrive at solutions, and apply them to improve the processes and eliminate wastes.Five Main Areas of KaizenTeamwork (Most Important)Personal disciplineImproved moraleQuality circlesSuggestions for improvementWho are Stakeholders Who benefit from Kaizen?The principal stakeholders of Kaizen philosophy are:

Employees of the organization. Top level management last level worker in the company. External stakeholders like vendors, customers, and Shareholders.

The Kaizen UmbrellaCustomer orientationTQC (total quality control)RoboticsQC circlesSuggestion systemAutomationDiscipline in the workplaceTPM (Total Productive Maintenance)KambanQuality improvementJust-in-timeZero defectsSmall-group activitiesCooperative labor-management relationsProductivity improvementNew-product developmentBenefits of KAIZENReduces waste- like inventory waste, time waste, workers motion.Improves space utilization, product qualityResults in higher employee morale and job satisfaction, lower turn-over.Widely acceptable-can be used in both manufacturing and non-manufacturing environments, for processes as well as people.Highly effective and success-oriented-Kaizen events will generate quick results, measurable results, establish the baseline and measure the change.A learning experience-every member of a Kaizen Team will walk away from the event learning something newPitfalls in KAIZENResistance to change

Lack of proper procedure to implement

Too much suggestion may lead to confusion and time wastageEasy Kaizen FlowIdentify problemEstablish existenceof problemDevelop problem statementFormulate solution(s)Implement solution(s)Document/StandardizeimprovementsEvaluate resultsSTARTEND1234567Kaizen, The ConceptJobs Function PerceptionsInnovationKAIZENMaintenanceInnovationMaintenanceTop managementMiddle managementSupervisorsWorkersJapanese perceptionsWestern perceptions// YIS//062709//

Deming WheelINNOVATIONKAIZENInnovationKAIZENContinuous ImprovementBreakthroughKAIZEN1INNOVATIONLong termUn-dramaticEffectShort term DramaticSmall stepsPaceBig stepsContinuous & incrementalTimeframeIntermittent &non incrementalGradual & consistentChangeAbrupt & volatileEverybodyInvolvementChampionCollectivism, group efforts, systems approachApproachRugged individualism, individual ideas & effortsKAIZEN2INNOVATIONMaintenance & ImprovementModeScrap & RebuildConventional know-how & state of the artSparkTechnological breakthroughs, new inventions, new theoriesLittle investment Great effort to maintainPractical RequirementsLarge investment Little effort to maintainPeopleEffort orientationTechnologyProcess & efforts for better resultsEvaluation criteriaResults for profitsSlow growth economyEconomic conditionFast growth economyHigh TechnologyTechnology oriented innovationTechnology oriented KAIZENInnovative product with Kaizen orientationLow TechnologyPeople oriented KAIZENKaizen oriented productTechnology LevelPreferred ProcessProductUpcoming Japanese product perceptionsKaizen by Total Quality Control (TQC)

The Kaizen philosophy assures that our way of life, or our home life, deserves to be constantly improved - Masaaki Imai

12345Quality control deals with the Quality of peopleSpeaks with dataQuality first, not Profit firstManage the previous process ( Upstream)The next process is the customer67Customer oriented TQC, not manufacturer oriented TQCTQC starts with training and ends with training89Cross Functional Management to Facilitate KaizenFollow PDCA cycles10Standardize the results5. Safety6. New-product development 7. Productivity improvement8. Supplier management4. Meeting delivery schedule3. Meeting production quota1. Quality assurance2. Cost reduction

TQCTQC

PLANDOCHECKACTKaizen The Practice

MANUFACTURING OBJECTIVES5 S Concept:5sBECDASeiri SortingSeiton Straightening Out Seiso Cleaning UpShitsuke Sustaining the Practice Seiketsu Standardizing

// YIS//062709//Waste of REJECTSqualityWaste in WIPWaste in DESIGNdeliverycostproductMethod / systemresourcesmoneyfacilitiesmanpowerWaste in EXPENSESWaste in FACILITIESWaste in MANPOWERWaste in MANAGEMENTWaste in MOTIONWaste in FIRST PHASE OF PRODUCTIONNINE WASTES !!

Shortened lead time

Reduced time spent on non-process work

Reduced inventoryBetter balance between different processes

Problem clarificationJIT

Top management responsibility :Strategy & PlanningAdministration responsibility:Provide supportKaizen Management

Management & Labor ; Enemies or Allies?Confrontation fighting over how to divide the pieCooperation Working together to bake bigger pie

Manager's first job is to learn to communicate with his employees so both workers and the company can achieve their common goalUnion leader who cannot understand financial statement and analyze the company's performance will not be able to negotiate with management on such labor-related subjects as technological innovation, personnel transfers, and scrapping facilitiesThe Kaizen Approach to Problem Solving

KAIZEN starts with a problem, more precisely the recognition that a problem existsWhen there is no problem , there is no potential for improvements

WhoWhatWhereWhenWhyHowWho does it?What to do?Where to do it?When to do it?Why does he do it?How to do it?Who is doing it?What is being done?Where is it done?When is it done?Why do it?How to do it?Who should be doing it?What should be done?Where should It be done?When should it be done?Why do it there?How should it be done?Who else can do it?What else can be done?Where else can it be done?What other time can it be done?Why do it then?Can this method be used in other areas?Who else should do it?What else should be done?Where else should it be done?What other time should it be done?Why do it that way?Is there any other way to do it?Who is doing 3-Mus?What 3-Mus are being done?Where are 3-Mus being done?Are there any time 3-Mus ?Are there any 3-Mus in the way of thinking?Are there any 3-MUs in the method?5Ws + 1 H

VELOCITY FOR COMPETITIVE ADVANTAGEStandardization Process optimization Elimination of waste Evolution in people and technique Durable trainingForm a team & allocate responsibilities

Seven Steps

2. Measure current state3. Analysis & improvement4. Apply first improvement5. Set process with new scenario6. Analysis & improvement7. Set-up board for visualization & monitoringCUTTING CHANGE OVER TIMEKaizen Costing Concept

Kaizen Costing ConceptTarget Costing is a process, Ensuring that the products are designed in such a way that the company can sell them cheaply & still make a fair profit. Kaizen costing focuses on the value & profitability of the manufacturing phase, both of new & existing products. Kaizen costing activities should be a part of a process of business improvement continuously, with improvements in quality, product functionality and service jointly.

Kaizen Changing the Corporate CultureA never-ending journey1The customer : The ultimate Judge of quality2The eye of the needle struggle to enter the market3Supplier relations4Changing Corporate culture : Challenge to the westWe call some societies primitive because of their desire to remain in the same state and in unchanging standard of living as their ancestors created them at the beginning of time

Anticipate Business Fluctuation Companies applying KaizenPharmaceutical Industry:Boehringer Ingelheim Sanofi Aventis Pfizer Schwarz Merck Unilabs Zydus CadilaFood and Beverages IndustryNestl Unilever Cadbury Schweppes Bongrain Sadia Tchibo Bacardi Pernod Ricard Brown Forman HochlandHealthcareIndependent Hospitals of Australia Hospital General de Santo Antonio Calgary Laboratory Services Mayo Clinic Danbury General Hospital Owensboro Medical Health System Public SectorGovernment of the United Arab EmiratesGovernment of Mauritius Government of Kenya Government of India Financial ServicesSociete Generale National Australia Bank/Bank of New Zealand N.M. Rothschild Europcar Lease Services Commonwealth Bank Adelaide Bank St.George Bank 7 Principles of Toyota Production System (TPS)Reduced Setup TimesSmall-Lot ProductionEmployee Involvement and EmpowermentQuality at the SourceEquipment MaintenancePull ProductionSupplier Involvement

Statements on KAIZENThe starting point for improvement is to recognise the need. This comes from recognition of a problem. If no problem is recognized, there is no recognition of the need for improvement. Complacency is the arch-enemy of Kaizen. Therefore, Kaizen emphasizes problem-awareness and provides clues for identifying problems. Masaki ImaiImprove constantly and forever the system of production and service. Improvement is not a one time effort. Management is obligated to continually look for ways to reduce waste and improve quality. W. Edwards Deming (philosophy of quality control)The Kaizen philosophy assures that our way of life, or our home life, deserves to be constantly improved - Masaaki ImaiWant a Kaizen Culture? Take You Vitamin C!Kaizen Principle: Be like MacGyver, use creativity before capital!

Be it our working life, our social life, or our home life, deserves to be constantly improvedKAIZEN PHILOSOPHYGood is never good enough, kaizen is a never-ending journey to excellence.

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