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We all are familiar with the Kaizen which is a Japanese innovation for organizational efficiency.This report/assignment focus on different aspects of Kaizen, Relation with HR and also explore it through some case studies t understand its effectivness
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5/17/2013
Human Resource Management, 2nd Sem. | Authored by : Shad Rahmani
JAMIA MILLIA ISLAMIA KAIZEN
2
KAIZEN
A Report on Kaizen
Prepared for 1st Semester submission
In
Human Resource Management course
Prepared By:
Shad Rahmani
Human Resource management
2nd Semester (1st year)
Department of Social work
Jamia Millia Islamia
Submitted to:
Prof. Sigamani P
3
KAIZEN
1
Quality is both thinking why something is done and why it is done
that way; then thinking differently to improve
(Taiichi Ohno), Chairman of Toyota)2
1 leanimprovement.blogspot.com
2 Sharma.d.d(2000) Total quality management, Delhi sultanchand &sons
4
1:-Introduction
We all are n familiar with the word KAIZEN after the visit to the
different production plants in our scheduled organisation visits.
First Thing which come in mind after seeing this word that it is a
foreign terminology, and as we all know KAIZEN is a Japanese term
meaning improvement or rather continuous improvement.
Essence of kaizen is very straight and simple. It speaks of
CONTINUOUS IMPROVEMENT. It is not just a business concept;
it is a philosophy of way of life, our professional life, social life and
personal life.
Through this assignment we would try to find the Origin, definition,
concept and framework of Kaizen.
We would further delve into conceptual understanding of topic, its
framework, different processes and implementation of the concept.
We would then analyse topic critically through case studies and try to
understand results achieved by application of kaizen.
5
2:-Theoretical background(s)
2.1:- Origin
Origin of Kaizen could be traced back to post world war
(World War II) scenario in Japanese economy. At that time most of
the Japanese companies were facing survival challenges and have to
start from the basic. At that time Experts such as W.E Deming
and M. Juran come into the leading front and introduced various
tools that helped origin of this concept around 1950s and early 1960s.
Kaizen was first implemented by Toyota in 1950 through quality
circles which lead to the development of a concept called Toyota
Production System
It was a system of continuous improvement in quality, technology,
processes, productivity, safety and leadership. It resulted in faster
delivery, lower costs, and greater customer satisfaction.
1986- Masaki Imai introduced this concept to the western world
through his book KAIZEN: The key to Japans competitive
success.
With thirty years of experience in Kaizen, Japanese companies has
flourished and set a benchmark for others.
6
2.2:-Definitions
In term of a common person we could always define kaizen as a
concept which seeks of continuous improvement. It is a very simple
and elegant definition which gives idea about what you are striving
for.
It is really amazing that a concept which changes an organisation is so
easy to describe in one sentence , In fact we could understand from
this that kaizen itself speaks of simplifying things and works toward
removal of complexity, thereby increasing productivity, performance
and profit.
Furthermore various researchers have explained Kaizen in various
different ways. We would go through them and try to understand the
concept.
1-Neese and Kong (2007)3 described kaizen as the process of
orderly continuous improvement
2- Kaizens are characterized as short bursts of intense activity driven
toward resolving a specific problem or achieving a specific company
goal in a short period of time (Chapman, 2006, p.27)4
3-Womack and Jones (1996)5 refers to Kaizen as Lean Thinking and
lay out a systematic approach to help organizations systematically
reduce waste.
4-Kaizen Event is a focused and structured improvement project
using a dedicated cross-functional team to improve a targeted work
area, with specific goals in an accelerated time frame (Letens, Farris,
and Van Aken, 2006)6
3 Mishra,Gupta anshul2010,kaizen culture: enabling organizational change management,GJEIS,vol-2,p-4
4 Mishra,Gupta anshul2010,kaizen culture: enabling organizational change management,GJEIS,vol-2,p-4
5 Lee Samson et al,1999-2000,kaizen:an essential tool for inclusion in industrial technology criteria,JIT,vol-16,p-2
6 Farris.A.Jennifer et al,2008,learning from less successful kaizen events-a case study,EMJ,vol-20,p-1
7
2.3:-Concept
Kaizen as we all have seen from definitions speaks of four main
elements
Hence kaizen is a process that sees improvement in productivity as a
gradual and methodical process.
Kaizen extract profits and productivity by eliminating waste from
overall processes
Hence we could safely assume that Kaizen is an improvement which
is
Kaizen is not expensive. The core principal of kaizen is to make small
and immediate improvements in process and standard of workplace. It
uses common sense tools checklist and techniques that do not cost
money. After a period of time all these processes would add up to-
Goal Oriented
Continuous Change Elimination
Of waste
Process
Significant
Stratigically important
Duration
Speedily
Sustainaible
Methods
Scientific data
Utilises Best Tools
Elimination Of Waste processe
Increased safety Increased Efficiency
Increased Productivity
8
2.4- Main Features
Till now we have learnt that kaizen is a goal oriented process which
emphasise on goal orientation and increasing profit by eliminating
waste processes. To implement kaizen we only need simple
conventional Techniques such as seven tools of quality control.
Here to understand main features of kaizen we would try to compare
it with western concept of innovation to get clarity.
S.no Features Kaizen Innovations
1 Effect Long term Short term
2 Pace Small Steps Big Steps
3 Timeframe Continuous Intermittent
4 Change Gradual and
Constant
Abrupt and Volatile
5 Involvement Everybody Select few
champions
6 Approach Collectivism, Group
Efforts
Individualism
7 Mode Maintenance and
Improvement
Scrap and Rebuild
8 Practical
Requirement
Little Investment
,Little effort
Large Investment,
Little effort
9 Effort Orientation People Technology
10 Evaluation Criteria Process and efforts
for better results
Results for profits
11 Advantage Works well in slow
growth economy
Better suited to fast
growth economy 7
7 Sharma.d.d(2000) Total quality management, Delhi sultanchand &sons
9
2.5-Framework
Kaizen work through its five fundamental basic principles
Which are-
Steps in Kaizen
8
8 http://www.wcmfg.com
Suggestion/feedback
QualityCircles
Improved Morale Self confidence Participation
Personal Discipline Work Culture Commitment
Team Work Group Effort Team Building
10
2.5:-Framework (contd.)
We could understand the cycle of Kaizen through PDCA cycle.
It was introduced by Deaming.It is also called Deaming Wheel or
PDCA cycle and is one of the crucial quality Control tools for
assuring continuous improvement
9
1-Plan and Design-PLAN Collection of Data, identification Of
Problem, Planning for Improvement
2-Implement-DoImpementation of Pilot Project
3-Evaluate-CheckObservation and Analysis of Procedures and
Results
4-Assess/Reassess-Action Assessing results and then redeployment
of the Improved Plan .From this stage cycle starts again.
9 http://www.kaizentek.com
11
3:-Conceptual Understanding
In this section now we will try to understand, what are different
methods of implementation of Kaizen in an organisation and how
different levels in an organisation interact and carry forward this
Process.
3.1:-Kaizen Umbrella
In practice all the quality control methods such as TQC, QC,
Zero Defect, JIT, Kanban etc come under one word i.e. Kaizen.
Hence by philosophy all the Japanese quality improvement methods
can be covered under concept of Kaizen.
KAIZEN
TQC
Quality Circles
SGAs
ZD
Suggestion System
Kanban
12
3.2:-Kaizen Strategy
1-Maintaining and improving working standards through small,
gradual improvements
2- Delineate responsibility for maintaining standards to workers, with
role of management being the improvement of standards
3- Produce a system approach and problem-solving tools that can help
in realising the goals
4-There should be everyday improvement being made somewhere in
the company
5- Maintaining quality should be highest priority; however this quality
maintenance should not be limited to finished products. It should run
through all activity such as design, production, management etc.
6- Kaizen works for problem solving and for that gathering relevant
data is very important
7- Kaizen is process oriented rather than result oriented. In kaizen
managers have to focus on Process and result should be process
oriented.
8- Elimination of waste and MUDA and realizing goals.
13
3.3-Kaizen and Management
In Kaizen management has two functions as in following chart-
Management must first establish policies, rules, directives and
procedures for everyone and ensure that everyone follows it.
Top management
Middle
Supervisors
Workers
(Japanese perceptions of Job Functions)
Top Management
Middle
Supervisor
Worker
(Management functions in KAIZEN)
Maintainance
Maintaining current technological and
operating standards
Maintaining Managerial p[rocesses
Improvement
Improving current standards
Improvement of Work practices
Improvement
Maintenance
Innovation
Kaizen
Maintenance
14
3.4:-Kaizen Implementation at Different Levels
Top
Management
Middle
Management
and Staff
Supervisors Workers
Having a
Determination to
introduce
KAIZEN as a
corporate strategy.
Deploy and
implement
KAIZEN goals as
directed by top
management.
Uses KAIZEN in
functional roles.
Engaging in
KAIZEN through
the suggestion
system and SGAs
Providing Support
and Direction for
KAIZEN by
allocating
resources.
Using KAIZEN in
functional
capabilities.
Formulating plans
for KAIZEN and
provides guidance
to workers.
Practicing
discipline in the
workshop.
Framing Policy
for KAIZEN and
Goals.
Establish,
maintain and
upgrade
standards.
Improving
communication
with workers and
sustaining high
morals.
Engaging in
continuous self
development to
become better
problem solver.
Deployment of
Policies and
audits to achieve
environment of
KAIZEN.
Organising
Training
programmes to
make employees
KAIZEN
conscious.
Introducing
discipline in the
workshop.
Enhancing skills
and job-
performance,
expertise with
cross-education.
Building system,
procedures and
structures
conducive to
Kaizen.
Help employees
develop kills and
tools for problem
solving.
Providing
Suggestions for
KAIZEN.
10
10
Charantimath Poornima,(2003) total quality managementDelhi,Pearson education
15
3.5-Kaizen Practice
Kaizen process can be divided into three segments depending upon
complexity and level.
1-Management oriented-Concentrate on logistic and strategic issues
and provides momentum to keep up progress and morale
2-Group oriented kaizen-it is a permanent approach and is represented
by QC circles and SGAs that uses various statistical tools for problem
solving. It calls for full PDCA cycle and identifying problems and
causes.
3-Individual oriented Kaizen-It is achieved in form of suggestion
system
S.No Aspects Management
oriented
Group
Oriented
Individual
oriented
1 Involves Managers QC Circle Everybody
2 Target System and
Procedures
Same
Workshop
Work area
3 Cycle Project Four to Five
Months
Anytime
4 Implement
cost
Small
Investment
Inexpensive Inexpensive
5 Result New system
and facility
improvement
Improvement
and revision
On the spot
improvement
6 Booster Improvement
in
managerial
performance
Morale
Participation
Morale
Self
Improvement
7 Direction Gradual and
visual
improvement
Gradual and
visible
improvement
Gradual and
visible
improvement
16
3.6-Kaizen in action
In Japanese philosophy there are three components that increases
waste and hamper the processes. Those are
1-MUDAWaste
2-MURIStrain
3-MURADiscrepancy
Every activity comprises of-
The Non value adding part is made up of MUDA, MURI and MURA.
When we reduce non value adding components, efficiency increases
and expenditures decreases.
A) List of MUDAS
1-Muda of over-production
2-Muda of repair/rejects
3-Muda of Inventory
4-Muda of motion
5-Muda of method
6-Muda of Time
7-Muda of materials
Value Adding
Non Value
Adding Activity
17
B) 5S Framework for quality improvement
C) Advantage of 5S
Less spending on replacing lost or damaged items Less stress Greater self-esteem More space Greater efficiency in achieving goals Greater readiness for new tasks Fewer hazards
Seiri
Sorting
Eliminate all unnecessary tools, parts, and instructions. Go through all tools, materials, and so forth in the plant and work area. Keep only essential items and eliminate what is not required, prioritizing things as per requirements and keeping them in approachable places. Everything else is stored or discarded.
Seiton
Setting in order
There should be a place for everything and everything should be in its place. The place for each item should be clearly labeled or demarcated. Items should be arranged in a manner that promotes efficient work flow. Workers should not have to bend repetitively to access materials. Each tool, part, supply, or piece of equipment should be kept close to where it will be used
Seiso
Systemic Cleaning
Keep the workplace tidy and organized. At the end of each shift, clean the work area and be sure everything is restored to its place. This makes it easy to know what goes where and ensures that everything is where it belongs. A key point is that maintaining cleanliness should be part of the daily work
Seiketsu
Standardizing
Work practices should be consistent and standardized. All work stations should be identical. All employees should be able to work in any station doing the same job with the same tools that are in the same location in every station. Everyone should know exactly what his or her responsibilities are for adhering to the first 3 S's.
Shitsuke
Sustain
Maintain and review standards. Once the previous 4 S's have been established, they become the new way to operate. Maintain focus on this new way and do not allow a gradual decline back to the old ways. While thinking about the new way, also be thinking about yet better ways. When an issue arises such as a suggested improvement, a new way of working, a new tool or a new output requirement, review the first 4 S's and make changes as appropriate.ain
18
D) Kaizen in Action (Graphical)
19
4:-CASE STUDIES
4.1-Case study-111
Title-Shortening customers telephone waiting time.
This case study is in reference to a bank where KAIZEN (QC)
program was implemented to reduce the customers waiting time on
telephone.
1-Companys Profile:-
The organisation at which this case study was taken place was a main
office of a large bank. An average of 500 customers called this office
every day. The theme of the companys telephone reception office
slogan Dont make customers wait, and avoid needless switching
from extension to extension
2-Problem/Situation:-
In a survey at the company it was found that callers tend to become
irritated if the phone rang more than five times before it was answered
and often would not call the company again. In contrast a prompt
answer after just two rings reassured them and made them feel more
comfortable.
3-Analysis:-
1-Discussion/Planning-First staff discussed why the present method
of answering calls made callers wait. They found following situations
i) Operator receives the call but due to lack of experience, does not
know where to connect the call
11
Masaaki imai 1984,the key to japans competitive success,Singapore,macgraw hill
20
ii) The receiver cannot answer the call quickly, perhaps because s/he
is unavailable or busy and nobody is there to take the call.
In such situation operator have to transfer call to another extension
causing delay
2-Cause and Effect-After arriving at problem participating members
conducted a survey regarding the callers who waited for more than
five rings. Members itemized factors at brainstorming session and
arranged them according to cause and effect.
3-Setting the target- after intense and productive session team
members decided to set a goal of reducing waiting callers to zero
4-Implementation:-
1-Taking lunches on three different shifts, leaving at least two
operators at the job all the time
2- Asking all employees to leave messages when leaving their desks.
Due to this operator were saved of transferring calls to desk where no
one is present. It was explained at regular meetings and posters were
placed all around.
3- Compiling a directory listing the personnel and their respective
jobs. It was to help operators to locate personnels easily.
5-Results:-
Although the waiting calls could not be reduced to zero, all items
presented showed a marked improvement.
Total number of delays incidents dropped from 351 to 59.
Daily average dropped from 29.2 to 4.8.
21
4.2-Case Study-212
Title-Case study at a manufacturing unit Company A
This case study is in reference to a manufacturing unit in field of
concrete reinforcement where KAIZEN techniques were applied to
increase the productivity and efficiency
1-Companys Profile:-
This case study was undertaken at a Company A at Iowa which
deals into the field of concrete reinforcement.
2-Problems/Situation faced:-
It was beginning at this plant and company attempted to invent a
structural reinforcement for concrete that carries all the strength of
steel while eliminating the problems associated with its weak
corrosive and thermal characteristics
So the situation/objective was to-
a) To develop a new product to match already established product
b) Removal of weakness in the product
c) To allow the product to reach more customers
3-Analysis/Implementation:-
Step-1.Forming the team and gather the information-
Datas related to engineering and technical aspects were collected.
Information regarding market positions on the product is gathered.
12
Lee Samson et al,1999-2000,kaizen:an essential tool for inclusion in industrial technology criteria, Journal of industrial technology,vol-16,P3-6
22
Step-2.Analysis of the process used by company A
Current method of manufacturing/processing was studied in detail.
What kind of products are manufactured, how much time is consumed
in the process, what kind of waste processes are generated are all
taken into account.
Step-3.Deciding the goal of the team
After gathering the detailed information about current process, Kaizen
team identified the goal. In this case, the team decided to improve the
method of storing the rods due to the excessive waste generation by
current storing method
Step-4.Providing the alternative methods
Following Kaizen steps, team developed seven technical ideas to
improve storage of the rods. One of the suggestions was to continue
with the current method but that was not a waste eliminating process.
Step-5.Evaluate and select best solution
The best method was an alternative number two where three rods are
extruded from the pull-truder. It showed an improvement of 97%
Step-6.Simulation and evaluation
To confirm the possibility of implementing the alternative method,
simulation was undertaken.
4-Result
As Company A is a growing company it really benefited
from the lean thinking and by eliminating waste processes.
23
4.3-Case study-313
Title:-Kaizen Implementation in an Industry in India
This case study was undertaken at HV Axles ltd.
1-Company Profile
The company HV Axles ltd which earlier was a division of Telco is
located in Jamshedpur. The major product of the company is front
axle and rear axle. It currently supplies its products to Tata Motors
Jamshedpur and Lucknow plants for commercial vehicles. This
company is mainly focussed on manufacturing as per customers
design
2-Problems faced
1-Numbers of operators like to exceed in assembly line
2-Low production efficiency
3-High production cost
4-Quality maintaining problems
5-System for simplification
13
gautam Rajesh,kumar Sushil,singh Sultan,2012 kaizen implementation in an industry in India:a case studyIJRMET,vol-2,P27-32
24
3-Implementation of Kaizen
1-Problems were discussed to managerial personals, engineers and
operators levels by considering different factors
2-Imparting proper level of training. Training was carried out by
internal/external faculties to create awareness, improving
communication and operating skills of the employee.
3-involvement of employees through group activities like quality
circles, suggestion schemes
4-Quality indicators had been employed examine the achievement of
suppliers in quality
5-Supplier companies were choosed near to the case companies to
reduce the time spent in distribution.
6-Kanban was used for transforming the information throughout the
production process.
4-Result
After using Kaizen number of operators remains same as earlier for
performing the same operation. This was possible only by multi
skilled and well trained operators.
Relevant task were given to carry out at relevant work stations.
Minimization of cost and increase in productivity is achieved because
operators become efficient.
Production improved from 210 axles per shift to 300 axles per shift by
less number of operators.
25
4.4-Case Synthesis
Parameters Case Study-1 Case Study-2 Case Study-3
Problems .Customer Dissatisfaction
.Weakness in
Product
.Storage Problem
.Low efficiency
.High Cost
.Poor Quality
Cause .Inefficient coordination
Poor engineering
Solution
.Lack of
multiskilled
workers
.Lack of Training
Objective .Streamlining the process of call
handling
.Reducing call
waiting time
.Providing new
solution for
product quality
.Expansion
.Increasing the
efficiency
.Creating pool of
multitasking
workers
.Reducing
Production Time
Methods .Cause and effect diagram
.Brainstorming
session
Designing new
storage methods
.Simulation
.Cost effectiveness
.Discussion and
planning at top
level
.Internal and
external training
.Use of quality
programmes like
JIT and Kanban
Information
System
.Charts/Posters
.Directory
Not seen .Electronic data
interchange
technique
.Suggestion
system
Changes
Brought
Drop in waiting
time for callers
.Better storage
system
.Multiskilled
employees
.Increased
production
.Reduction in
production time
Result .Positive .Not fully
achieved
Positive
.Positive
.Reduced Time of
Production
\
26
5:-Lessons Learnt
A) Overall
1-KAIZEN is a process oriented approach, hence has lasting impact
2- There is a high level of employee involvement which enhances
their morale and motivation.
3- It helps to improve quality, thereby enhancing customer
satisfaction.
4-It helps to improve productivity resulting in low cost of operation.
5- It helps to reduce the rate of accidents thus improving work safety.
6- It aids in waste reduction in areas such as inventory, waiting time,
transportation and others which in turn aids in better utilization of
space and resources.
B) Relevance to INDIA
In todays scenario of globalization our Indian companies are not
behind in implementing KAIZEN in their unit/plants/offices so as to
reduce waste and increase efficiency.
1- As we just seen that HV axles successfully implemented
KAIZEN to increase production
2- Escorts Agri machinery plant implement KAIZEN in their plant
to minimise waste and achieve specific goals. They implement it
through SGAs
3- Moser Baer Plant at Greater Noida implement KAIZEN to
minimise defects in their manufacturing
4- Lucas TVS, Chennai, Tamil Nadu conserved energy in capitive
diesel generation sets through KAIZEN. It enabled them to
conserve 84000 litres of high speed diesel per year.
27
6-Conclusion
Kaizen means improvement. It means small improvements done
consistently over a long period of time. If we integrate the kaizen
principles into our workplace, we will see improvements right away,
and great improvements in the long term. We will see improvements
in at the workstations, in the office and in our employees.
Kaizen is a philosophy that needs the involvement of all people in the
company. Emphasis should be placed on reduction in time, removal
of waste processes to meet the goal, and elimination of unnecessary
operations, activities and workstation.
It is also apparent that many organizations could gain from utilizing
the lean thinking approach. However the major components of Kaizen
are the use of teams, the use of problem-solving tools, and an
orientation to the lean thinking philosophy to reduce muda.
.
28
Overall Cycle:
14
14
Source: Archfield Consulting Group
29
7:-References/Bibliography
1-BOOKS
a) Sharma.d.d(2000) Total quality management, Delhi sultanchand &sons
b) Charantimath Poornima,(2003) total quality managementDelhi,Pearson education
c) Masaaki imai 1984,the key to japans competitive success,Singapore,macgraw hill
2-Journals
1-Mishra, Gupta anshul2010, kaizen culture: enabling organizational change
management, GJEIS, vol-2
http://www.ejournal.co.in/gjeis/index.php/GJEIS/article/viewFile/112/62
2-Lee Samson et al, 1999-2000, kaizen: an essential tool for inclusion in
industrial technology criteria, JIT, vol-16,
http://atmae.org/jit/Articles/lees1101.pdf
3-Farris.A.Jennifer et al, 2008, learning from less successful kaizen events-a
case study, EMJ, vol-20,
http://lostlagoon.info/IMFILES/5PCS%20Learning%20from%20less%20succes
sful%20Kaizen%20events.pdf
4-gautam Rajesh, Kumar Sushil, singh Sultan, 2012 kaizen implementation in an industry in India: a case studyIJRMET, vol-2, http://www.ijrmet.com/vol2/a984.pdf
3-Websites for Images
1- leanimprovement.blogspot.com
2- http://www.wcmfg.com 3- http://www.kaizentek.com