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Chapter 10Kaizen
Securing Your Tomorrow-Today
2
Lean EnterpriseLean Enterprise
Six SigmaQuality
Six SigmaQuality
Workplacesafety, order,cleanliness
Workplacesafety, order,cleanliness
Flow and PullProduction
Flow and PullProduction
EmpoweredTeams
EmpoweredTeams
VisualManagement
VisualManagement
Pursuit ofPerfectionPursuit ofPerfection
The workplace issafe, orderly, and very clean
Products are built“Just In Time,”
to customer ratebased demand
Six Sigma Qualityis built into theproduct and the process
Member teamsare empowered
to make keydecisions
Visual Managementto track performance
and open the companyto all people
There is arelentless pursuit
of perfection
The Lean Enterprise Principles
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Pursuit of Perfection Supports the other Lean Enterprise
fundamentals Is a continual and constant search for ways
to do things better, quicker, faster, and easier
Is a way of life
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Pursuit of Perfection
The Most Important Aspect: It is an anti-waste mentality or mindset that
brings about a CONSTANT striving for improvement.
Perfection must be an ongoing goal even though it can never be fully attained!
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Pursuit of Perfection Ask key questions:
◦ Why do we need to improve?◦ What can we improve?◦ Where do we need to focus our improvements?◦ When are we going to complete the
improvements?◦ Who is going to participate in the improvement
effort?◦ How are we going to get it done?
Find ways to facilitate free flow of ideas:◦ The team members are the experts
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A Japanese word that means to “change for the good.”
Doing “little things” better everyday defines kaizen - slow, gradual, but constant improvement.
Continuous improvement in any area that will eliminate waste and improve customer satisfaction.
Often result in improvementsin the range of 5-20%
Kaizen
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A Japanese word that means to “radically change.”
Is about making fundamental and radical changes – fast, rapid, but constant improvement.
Often result in improvements in the range of 30-50% or more.
Both Kaizen and Kaikaku can be applied to activities other
than production.
Kaikaku
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A cross between Kaikaku and Kaizen is a Kaizen Blitz (or Kaizen Events)
Implies a radical improvement in a limited area, such as a production cell
Concentrates a team of people, from a few days to two weeks, focused on dramatic improvement in one area
Can accomplish:◦ Rapid improvement in the performance of a specific
production process or manufacturing cell. The target of kaizen is cost reduction through
the elimination of waste at all levels.
Kaizen Blitz
This results in local improvement – not system level
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Rule #1: Event based kaizens must be used only as part of an overall continuous improvement strategy. Kaizen events by themselves will not transform you into a world class manufacturer.
Rule #2: Kaizen events will make the production process or manufacturing cell more productive. Prepare a plan NOW for redeploying the members of your team who become available as a result of this initiative. Tell your team in advance what will happen.
Kaizen Rules
Waste Targets Are….
Anything that absorbs resources (manpower, equipment, time, floor space, etc.) without adding value to the product.Eight Types of Waste
Defects Overproduction Waiting Non-utilized resources Transportation Inventory Motion Extra Processing
Maximize Value Added ActivityMinimize Non-Value Added Activity
Our Objective:
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Rule #7: The keys to eliminating motion waste are:◦ Operators never have to turn around◦ Operators never have to search for anything◦ Operators never have to walk
Rule #8: To reduce the operator walking or manual times, concentrate on these improvement areas.◦ Transformation of material and parts with the cell◦ Loading and unloading of machines◦ The presentation of parts to the operator
Kaizen Rules
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Prior to Day 1◦ Create charter and team
Day 1 and 2◦ Mix between training and analysis of work area
performance and opportunities for improvement Day 3 through 5
◦ Rapid implementation to reduce waste◦ Use of the tools described up to this point
Day 5◦ Report out to top management◦ Celebration
Typical Agenda
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Phases of Team Evolution
4. Performing
Convene5. AdjourningPr
oduc
tivity
Productive
1. Forming
Inclusion
Testing
Quiet Polite Guarded Impersonal Business-like High Morale
Trust Flexible Supportive Confident Efficient High Morale
2. StormingCon
trol
Infighting
Conflict over control Confrontational Alienation Personal agendas Low morale
3. Norming
Cooperation
Organized
Establish procedures Develop team skills Confront issues Rebuilding morale
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Rule #3: Kaizen events require an investments by management in terms of people and material resources. If the event is performed in a production area, it will result in lost productivity. Management must understand and agree with this investment before the event can begin.
Rule #4: Many members of the event team should always be from the event area to be studied. These members provide “fresh eyes” and a different perspective for viewing the manufacturing process.
Kaizen Rules
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Rule #5: Kaizen events in production areas should include representatives from all production shifts in that area.
Rule #6: The basic nature of kaizen is to make improvements with what is available. It generally doesn’t cost money to do kaizen. If you must spend money, perform simulation using cardboard or wood.
Kaizen Rules
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1. Keep an open mind to change2. Maintain a positive attitude3. Create a blameless environment4. Encourage non-judgmental thinking5. Be aware of multiple alternatives6. Treat others as you want to be treated7. Respect and involve all team members8. One person, one voice9. Create a team environment10. No such thing as a dumb question11. Create a bias for action12. Creativity before capital13. Never leave in silent disagreement14. Have fun
Rules of Kaizen
We must use a mix of kaizen and kaikaku – What did your VSM tell you?
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Paradigm – a set of rules and regulations, either explicit or implicit, that:
Sets boundaries Defines a pattern or model Tells what to do to be successful within those
boundaries
Also…. Inhibits continuous improvement Causes resistance to change
Success is measured by being able to solve problems within rules.
Keep an Open Mind to Change
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“Everything that can be invented has been invented.”Charles H. Duell, Commissioner, U.S. Office of Patents, 1899
“The wireless music box has no imaginable commercial value. Who would pay for a message sent to nobody in particular?”
David Sarnoff’s associates, in response to investment in the radio, 1920’s
“Who the hell wants to hear actors talk?”Harry M. Warner, Warner Brothers, 1927
“I think there is a world market for maybe five computers.”Thomas Watson, CEO of IBM, 1943
“There is no reason for any individual to have a computer in their home.”
Ken Olsen, Pres, Chairman & Founder of Digital Equipment Corp., 1977
“640K ought to be enough for anybody.” -Bill Gates, 1981
The Past Imperfect – Paradigm Shifts
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Results are always historical◦ Yesterday◦ Last week◦ Last month
Focus on the PROCESS Improved RESULTS can only be obtained by
improving the PROCESS Process is NOW
Kaizen Process and Results
5. Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs.
- Deming 14 points
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If no problem is perceived, there can be no improvement
People are not problems, they are problem-solvers
Non-judgmental/Non-blaming Eliminates the search for who to blame Provides system improvement Allows “relentless root cause analysis” Increases trust Improves quality of communication Avoids “shoot the messenger” mentality Avoids crisis orientation
Problems are Opportunities
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Rule #9: Try to make all improvements within the event area. Avoid the tendency to blame suppliers for the event area’s problem
Kaizen Rules
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Motto: I do not accept defects I do not make defects I do not pass on defects
Source inspection – Operators must be given the means to perform inspection at the source, before they pass it along.
Poka-yoke must be considered - the removal of all potential causes of error either through design, process, or mistake proofing devices, to ensure consistent process results.
Create a Zero Tolerance Towards Defects
Raised material / lettering example
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Do not assume Analyze data Make decisions with data Take action based on data Check results
Each of the following is worth something – but of no real validity without DATA:◦ Opinions◦ Past experience◦ Sixth sense◦ Gut feeling◦ Spouse’s intuition
Speak with Data
"“In God we trust; all others must bring data.”
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The Seven Step Kaizen Process
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Create a Value Stream Map
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• Flow Map/Chart• Worksite Arrangement Diagram• Cycle Time Study• Other Data Collection Tools
• Methods Include:• Observation – Watch how the work is done• Hands-on-experience – Sample the work• Interviews – Ask questions to verify and clarify, get input from those who
do the work• Five Why’s – Ask “why” as many times as necessary to find root cause
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• Implementation Planning Worksheets• Process Flow Map/Chart• Worksite Arrangement Diagram• Cycle Time Sheet
Determine a process for monitoring resultsMonitor and evaluate results
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• Process Flow Map/Chart• Worksite Arrangement Diagram• Work Instructions• Standard Operating Procedures• Cycle Time
Revise ProceduresUpdate Training MaterialsTrain on the new procedures to ensure good results
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Organizational Assessment
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Lean Assessment Purpose
◦ Identifies potential opportunities for improvement at a high level
◦ Provides understanding of the process before change
Objective◦ A methodical evaluation that documents the
“Current State” of the business considering Lean deployment and what can be expected directionally in the future under certain assumptions
Organizational Assessment
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Preparation◦ Training for the auditor◦ Training for the areas to be audited◦ Secure templates for self-assessment
Get training Ask open ended questions Use silence Hire experienced staff Hire a consultant Use a rubric style assessment list
Conducting the Lean Assessment
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Lean Assessment Criteria We must bridge the gap from current reality
to perfection◦ Lean assessment criteria based on best practices
of other companies that are pursuing Lean Enterprise implementation
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Prepares summary and detailed reports of findings for: Specific areas for initial improvement, reasons, and
possible solutions Estimate amount of internal and external resources
needed High-level plan recommendations
Final Deliverables Report of findings Meeting with key stakeholders for review and discussion Re-cap of review meeting, assignments and deadlines
for implementation
Documentation
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Initially, less is more A minimally intrusive up-front assessment
that focuses on culture, skills, and change readiness
Get stakeholder buy-in for change Structure initial efforts to include
◦ Full-scale investigation◦ Benchmarking
Things Needed to Proceed
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A model and guideline to provide a framework for identifying and evaluating the standard for operational excellence.
The model and guidelines generally do not prescribe one single best method, system, or route to attaining operational excellence.
Principle-driven organizations are clearly viewed as the best paradigm for achieving operational excellence.
The Shingo Prize
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The Shingo Prize
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1. Respect every individual2. Lead with humility3. Seek perfection4. Assure quality at the source 5. Flow and pull value 6. Embrace scientific thinking 7. Focus on process 8. Think systemically 9. Create constancy of purpose 10. Create value for the customer
The Shingo Principles of Operational Excellence
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Lean assessments are highly recommended Follow a structured approach Leverage “experience” Document lessons learned Establishes a clear high-level strategic and
tactical plan
Summary
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Create flow Eliminate waste Create a sense of urgency Speak with data Have a bias for action Reduce variation Focus on the process Communicate, communicate, communicate
Conclusion
Now, let’s go to the Gemba……