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Page: 1Pathways to Automation - Avoiding the Kaizen Paradox
Page: 2Pathways to Automation - Avoiding the Kaizen Paradox
The Kaizen ParadoxHow Continuous Improvement can Impede Innovation
Page: 3Pathways to Automation - Avoiding the Kaizen Paradox
Kaizen => Change + Good => Continuous Improvement
Page: 4Pathways to Automation - Avoiding the Kaizen Paradox
• One piece flow• Just in Time (JIT) KanBan• Total Quality Management (TQM)• Total Productive Maintenance (TPM)• Zero Defects (ZD)• 5S – seiri (sort)
seiton (set in order) seiso (shine / sweep) seiketsu (standardise) shitsuke (sustain)
Page: 5Pathways to Automation - Avoiding the Kaizen Paradox
Page: 6Pathways to Automation - Avoiding the Kaizen Paradox
Kaikaku => Change + Transformation => Automation
Page: 7Pathways to Automation - Avoiding the Kaizen Paradox
Common
Candle
The 1W candle producesaround 10 lumens
kaikaku
Candles vs Light Bulbs
Page: 8Pathways to Automation - Avoiding the Kaizen Paradox
RevolutionaryProduction / DistributionInvolves Managers / EngineersDiscrete Project TimeframeHigh Productivity ImpactSignificant reduction in: -Labour Required-Space Needed
EvolutionaryCompany Wide
Involves EveryoneContinuous - Never Ends
Limited Productivity ImpactModest Efficiency Gains:
-Labour Required-Space Needed
Page: 9Pathways to Automation - Avoiding the Kaizen Paradox Page: 9
Manual Warehouse
Person to Goods (Trolley)
One Picker processes between 50 and 100 OL/hr
To process 20,000 OL: 40 to 50 pickers for 8 hours
To store 20,000 SKUs: 5,000m2
Mechanised Warehouse
Person to Goods (Conveyor / FLT)
One Picker processes between 100 and 150 OL/hr
To process 20,000 OL: 20 to 25 pickers for 8 hours
To store 20,000 SKUs: 5,000m2 (+ mezzanine)
Automated Warehouse
Goods to Person (Robot / Shuttle)
One Picker/Robot processes between 500 and 1000 OL/hr
To process 20,000 OL: 0 to 5 pickers for 8 hours
To store 20,000 SKUs: 1,000m2
kaikaku
Kaizen and Kaikaku in Warehousing
kaizen
Page: 10Pathways to Automation - Avoiding the Kaizen Paradox
(C) MANUAL + SOFTWARE
(B) MECHANISED
(A) AUTOMATED
PR
OD
UC
TIV
ITY
( O
RD
ER-L
INE
/ H
OU
R /
PIC
KER
)
200
300
400
500
1 2 3 4 5 6 7 8 9 10
(A,B,C) PAPER BASED
100
kaizen
kaikaku
CUMULATIVE ROI PERIOD (YEARS)
Page: 11Pathways to Automation - Avoiding the Kaizen Paradox
(A) AUTOMATED
200
300
400
500
1 2 3 4
(C2) MECHANISED
5 6 7 8 9 10
(C1) AUTOMATED
100
AUTOMATION ROI
UNDER 3 YEARS
kaizen
kaikaku
(B) FAILED TO AUTOMATE
CUMULATIVE ROI PERIOD (YEARS)
PR
OD
UC
TIV
ITY
( O
RD
ER-L
INE
/ H
OU
R /
PIC
KER
)
Page: 12Pathways to Automation - Avoiding the Kaizen Paradox
(A) AUTOMATED
CUMULATIVE ROI PERIOD (YEARS)
200
300
400
500
1 2 3 4 5 6 7 8 9 10
(C1) AUTOMATED
100
AUTOMATION ROI PERIOD OVER 3 YEARS
THE KAIZEN PARADOX
kaizen
kaikaku
(B & C2 ) FAILED TO AUTOMATE
PR
OD
UC
TIV
ITY
( O
RD
ER-L
INE
/ H
OU
R /
PIC
KER
)
Page: 13Pathways to Automation - Avoiding the Kaizen Paradox
should followkaizen kaikaku
Observation
Page: 14Pathways to Automation - Avoiding the Kaizen Paradox
Voice Assisted Case Picking and Mechanised Layer Picking => Improvement
Page: 15Pathways to Automation - Avoiding the Kaizen Paradox Page: 15
Case and Layer Picking with Robot and Conveyor => Transformation
Page: 16Pathways to Automation - Avoiding the Kaizen Paradox
Kakushin => Transformation + New => Innovation
Page: 17Pathways to Automation - Avoiding the Kaizen Paradox
“Toyota started by copying the technology of the front-runners. The company has made improvements on the existing technology, which has led to innovation. What's wrong about imitating and improving on others?“- Akio Toyoda, May 2018
Page: 18Pathways to Automation - Avoiding the Kaizen Paradox Page: 18
An example of Innovation: Autonomous Mobile Robots in Layer/Stack Picking
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2. Kaizen (Improve)
3. Kakushin (Innovate)
1. Kaikaku (Transform) 1. Kaizen (Improve)
Productivity Plateau (The Kaizen Paradox)
PR
OD
UC
TIV
ITY
CUMULATIVE ROI CUMULATIVE ROI P
RO
DU
CTI
VIT
Y
Page: 20Pathways to Automation - Avoiding the Kaizen Paradox
Making the leap with Industry 4.0
Leve
l of
Co
mp
lexi
ty
1st Industrial Revolution
Through the introduction of production with the aid of steam power and later electricity
4th Industrial Revolution
Internet of Things, Big Data,Cyber Physical Sys, AR and VR
2nd Industrial Revolution
Through the introduction of specialized mass production with the aid of the production line
3rd Industrial Revolution
Through the employment of electronics and IT for a further automation of production
End of 18. Cent.
Beginning of 20. Cent.
Beginning of 70sof 20. Century
today
Time
Page: 21Pathways to Automation - Avoiding the Kaizen Paradox
Modular and Scalable Systems
Increasing Storage
Incr
eas
ing
Thro
ugh
pu
t
Page: 22Pathways to Automation - Avoiding the Kaizen Paradox
