Summer Training Report in HR

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Exploring the Concept ofKaizen

2013

PIYUSH KUMAR

MBA- 2012-2014

KANSAI NEROLAC PAINTS LTD. | KANPUR


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A

Summer Training Research Report On

Exploring the Concept of Kaizen

SUBMITTED TO:

Gautam Buddh Technical University, Lucknow

For the partial fulfillment of the requirement of

Masters of Business Administration

(MBA -2012-2014)

UNDER THE SUPERVISION OF:

Mr. Satyendra Singh

Human Resource Officer

KANSAI NEROLAC PAINTS LIMITED

KANPUR

SUBMITTED BY:PIYUSH KUMAR

MBA FIRST YEAR

Roll No. 1218170061

SCIENCE AND TECHNOLOGY ENTREPRES PARK

HARCOURT BUTLER TECHNOLOGICAL INSTITUTE, NAWABGANJ,

KANPUR-208002


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DECLARATION

I Piyush Kumar student of MBA III sem. of STEP-HBTI, Kanpur hereby declare that

this project report Exploring the Concept of Kaizen of KANSAI NEROLAC PAINTS

LIMITED is written and submitted by me under the guidance of Mrs. SATYENDRA

SINGH (HR. Officer). The entire analysis and conclusion of this report are based on

the information which is collected by me during the training period.

The empirical finding in the report are based on the data collected myself while

preparing this project. I have not copied anything from any source or other

project submitted for the similar purpose.

DATE: 15 JULY 2013

PLACE: KANSAI NEROLAC PAINTS LTD.

(SIGNATURE OF THE STUDENT)


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ACKNOWLEDGEMENT

The pages that follow comprise a report on Exploring the Concept of Kaizen.

Before we get into think of things. I would like to add a few heartfelt words for

the people who were a part of this project in numerous ways. In particular I would

like to thank Mr. Satyendra Singh (HR. Officer) for leading his time and valuable

efforts for making this project a success.

And finally I would like to thank to all those who helped in submitting this project

in time and in a systematic and decent manner.

PIYUSH KUMAR


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PREFACE

The Summer Training is an integral part of academic curriculum. During the training, a

student gets an opportunity to understand the practical aspects of theory by making

their concepts more clear. This project report is the outcome of the summer training

that I have undergone at KANSAI NEROLAC PAINTS LIMITED, KANPUR for the

partial fulfillment of my Masters of Business Administration. The topic allotted to me

by the company is Exploring The Concept of Kaizen.

I have tried my level best to make a good report. However, no one can claim for

perfection entirely. Preparation of project requires perseverance, initiatives, proper

guidance and direction. So, it is mandatory to take the aid of various departments.


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INDEX

TOPICS PAGE No.

1. About the Kaizen 57

2. Objective of Kaizen study 8-11

3. Kaizen Events 12-32

4. Rewards and Recognition Policy 32-375. Company profile 38-44

6. The HR Policy 45-59

7. Awards of KNPL 60-69

8. Kaizen Impact Flow Chart 70

9. Kaizen Criteria and Methodology 71-72

10.PDCA Cycle 73

11.5S 74-80

12.Research Work and Its Agenda 81-90

13.Findings 91

14.Conclusion and suggestions 92-93

15.Limitations of Study 94-95

16.Questionnaire 96-103

17.Reference 104


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ABOUT THE KAIZEN

Kaizen means Kai (Change) and Zen (For Good). Any change for Good can be termed

as Kaizen.

Kaizen is any small improvement done in the current working procedure, equipment.

Kaizen is a daily process, the purpose of which goes beyond simple productivity

improvement. It is also a process that, when done correctly, humanizes the workplace,

eliminates overly hard work , and teaches people how to perform experiments on their

work using the scientific method and how to learn to spot and eliminate waste in

business processes.

In all, the process suggests a humanized approach to workers and to increasing productivity:

"The idea is to nurture the company's human resources as much as it is to praise and encourage

participation in kaizen activities." Successful implementation requires "the participation of

workers in the improvement." People at all levels of an organization participate in kaizen, from

the CEO down to janitorial staff, as well as external stakeholders when applicable. The format

for kaizen can be individual, suggestion system, small group, or large group.

At Toyota, it is usually a local improvement within a workstation or local area and involves a

small group in improving their own work environment and productivity. This group is often

guided through the kaizen process by a line supervisor; sometimes this is the line supervisor's

key role. Kaizen on a broad, cross-departmental scale in companies, generatestotal quality

management,and frees human efforts through improving productivity using machines and

computing power
http://en.wikipedia.org/wiki/Scientific_methodhttp://en.wikipedia.org/wiki/Total_quality_managementhttp://en.wikipedia.org/wiki/Total_quality_managementhttp://en.wikipedia.org/wiki/Total_quality_managementhttp://en.wikipedia.org/wiki/Total_quality_managementhttp://en.wikipedia.org/wiki/Scientific_method


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Condition or any process leading to benefits to the person doing Kaizen and company. Kaizen

will be recognized only when the format is filled, idea is implemented and expected benefits are

understood/ verified by sectional head / AET leader.

Kaizen is a daily process, the purpose of which goes beyond simple productivity improvement. It

is also a process that, when done correctly, humanizes the workplace, eliminates overly hard

work , and teaches people how to perform experiments on their work using thescientific

method and how to learn to spot and eliminate waste in business processes. In all, the process

suggests a humanized approach to workers and to increasing productivity: "The idea is to nurture

the company's human resources as much as it is to praise and encourage participation in kaizen

activities.

"Successful implementation requires "the participation of workers in the improvement." People

at all levels of an organization participate in kaizen, from the CEO down to janitorial staff, as

well as external stakeholders when applicable. The format for kaizen can be individual,

suggestion system, small group, or large group. At Toyota, it is usually a local improvement

within a workstation or local area and involves a small group in improving their own work

environment and productivity. This group is often guided through the kaizen process by a line

supervisor; sometimes this is the line supervisor's key role. Kaizen on a broad, cross-

departmental scale in companies, generatestotal quality management, and frees human efforts

through improving productivity using machines and computing power.

While kaizen (at Toyota) usually delivers small improvements, the culture of continual aligned

small improvements and standardization yields large results in the form of compound
http://en.wikipedia.org/wiki/Scientific_methodhttp://en.wikipedia.org/wiki/Scientific_methodhttp://en.wikipedia.org/wiki/Total_quality_managementhttp://en.wikipedia.org/wiki/Total_quality_managementhttp://en.wikipedia.org/wiki/Scientific_methodhttp://en.wikipedia.org/wiki/Scientific_method


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productivity improvement. This philosophy differs from the "command and control"

improvement programs of the mid-twentieth century. Kaizen methodology includes making

changes and monitoring results, then adjusting. Large-scale pre-planning and extensive project

scheduling are replaced by smaller experiments, which can be rapidly adapted as new

improvements are suggested.

In modern usage, it is designed to address a particular issue over the course of a week and is

referred to as a "kaizen blitz" or "kaizen event". These are limited in scope, and issues that arise

from them are typically used in later blitzes.

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.

Many of these advancements are the direct result of a labor force empowered by Kaizen.

This is an environment in which all employees participate in finding efficiency

improvements and are never afraid to contribute to the success of their facility. Modern

Kaizen advances this philosophy further. In many modern facilities, work area personnel

arent just encouraged to contribute ideas for facility improvements its expected.

This is a philosophy shared by all employees and helps build an atmosphere of teamwork

and achievement. This greatly improves communication between personnel and

management and helps facilitate efficiency improvements in work areas.
http://en.wikipedia.org/wiki/Command_and_control_(management)http://en.wikipedia.org/wiki/Command_and_control_(management)


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In Kaizen, all suggested ideas are reviewed by management and given serious

consideration without preferential treatment. Ideas found to have merit are quickly

implemented, no matter who suggested it. This level of active participation empowers

employees to constantly strive for improvement and work to keep their facility

competitive.


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Objective of the study

A 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

timeframe . Recent evidence suggests that Kaizen events are becoming increasingly popular as a

method for targeting initial improvement both in business performance and social system

outcomes . However, the initial success of a Kaizen event does not guarantee the sustainability of

event outcomes. In fact, some practitioners note that Kaizen events should not be performed

unless they are done with the intent and activities necessary to sustain results.

To over come this situation my objective was how to make Kaizen event more efficient,

effective, and interesting and make this useful and helpfull in the company.

A Kaizen Event

A Kaizen is a highly focused assault on an area or process to achieve rapid

improvement in the organization which uses a cross-functional team with process

insiders and outsiders. It achieves as many improvements as possible during a typical

day event in every organization every year has to be done. It has some augments, but

does not replace, continuous improvement in the works and the employees and workers to

do all the work together and have all the problem short-out during the work.


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When Are Kaizen Events Appropriate?

Kaizen Events are done in the organization because for the improvement and the work

progress in doing all the work which has been done for it. It has some conditions in

which Kaizen are given in the prizes in which the events are going to be held. The

events are going to be held because of the following conditions:-

Need for solution is urgent

Competitive crisis

High customer dissatisfaction

Big impact projects

Significant impact on sales or profits

Bottlenecks

Cannot tolerate prolonged disruption


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Selecting Candidates for Kaizen Events

The selection of the candidates for Kaizen events which going to be held by the

organizations are selected through these of the following factors:-

Factors to consider the entering of the candidates.

Strategic goals of the organization

Current performance of process, department, machine (good time for Value Stream

Mapping)

Feasibility (difficulty, resources required, probability of success)

Selecting the top few candidates

Decision matrix (sample available on request)


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Selecting the Pilot Event

The event must be the highly visible and obelized by the advertisement and all the

event are done in higher scale. The PILOT EVENT means that event which are going to

be held in larger in scale and there is the success of the event which has been for

growing change in the organization. The pilot event has some success points which has

been detailed according to these points:-

a. High likelihood of success.

b. Results will be highly visible.

c. Makes a significant impact to the organization.

d. Solves operational problems, not management issues.

e. Area has a stable current process.


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Preparing For the Event

The team has to be prepared for all the departments or the sections in which the

progress or the result outcome has to be concerned about it. The team has to be selected

for all the members in which every member has to participate in this event and they

must have to play important role with the co-ordination of the team. It has some major

aspects which may define it easily:-

Select team sponsor

Select team leader

Choose the facilitator

Choose team participants

Develop the team charter

Gather data prior to the event

Prepare the organization


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Recorder

The recorder means that part in which the person records all the important data,

decisions, etc. which may useful for the future aspects and all the data are provided

easily within a less time of period. It has some important facts are as follows:-

Records important results, actions, & decisions

Promptly distributes minutes to participants

Usually a team member


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Traits of Good Participants

The good participants may have the idea about what Kaizen means and all the work

done through easily and done all the work in very less and accurate time period. The

good candidates may active at any time in which it may have to be highly worked at

that time. The following criteria which have been seen in the applicable candidates are as

follows:-

Understands the target area

May work in area

Can learn the area

Open to doing things differently

Will get involved

Good communicators

Brings knowledge (technical or procedural) that will help the team succeed.


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The Kaizen Team Charter

The Kaizen team charter has to be well known about all the rules, types, scopes, etc. the

team has to be defined or selected by all the Top Level of Management or the Board of

Directors which are selected under the supervision of it.

Team Charter clearly identifies rules of operation

Objectives

Scope

Resources available (budget, assistance, etc.)

Authority of the team (and its limits)

Deliverables

Schedule

Code of Conduct (developed at kick-off meeting)

_ Created by leader and approved by team


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Before 1st Team Meeting

The very first step is to 1st meeting of all the volunteers has meet with all the applied

candidates who participated in the event which was held by the organization. The

following methods are as follows:-

1. Gather detailed information in advance

2. Process steps

3. WIP levels

4. Capacities/process times

5. What is produced and how much?

6. Cycle and queue times

7. Batch sizes & changeover frequency

8. Defect Rates


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9. Up-time

10.Number of operators

11.Photos and layout of target area

Rolling Out the Kaizen Event

Kaizen event are the major event for all the organization in which the development and

the growth is important for everyone. The rolling out in the Kaizen event is the main

part of all event which may have to handle about it. The Kaizen event may have to take

the supervision of the management. It may help to preparing the organization

considerations which may to develop in all about it. The various parts of rolling out are

as follows:-

Developing a sense of trust across the organization

Generating enthusiasm about the event

Demonstration of commitment by management

Publicizing the event - before and after

Getting the union to cooperate


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Team Kickoff (includes sponsors)

Review draft charter, modify, approve

Develop code of conduct (agreement on rules)

Discuss training and event logistics, etc.

BASIC KAIZEN PHILOSOPHIES

The basic Kaizen Philosophies are as follows:-

InnovationComes from anyone, but the right environment must be provided.

PerformanceManagers spend time in work areas so performance improvements are well

communicated.

Bottom LineCost reductions involve many small steps by both management and labor.

TraditionA company should only have a tradition for change.

Profit Sharing All employees are rewarded for finding efficiency improvements that

increase profits.

InventoryLower inventories reduce waste and help uncover flaws in the system.

QualityQuality comes from constant attention to all levels of product design, development

and production.


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Reliability Good station operators maintain and improve their own machines for greater

reliability.

SpecializationLearn your job first and then learn everything related to your job. Never

specialize.

RepetitionThe more one improves, the more the company saves and the more they can pay

employees.

DirectionLook around for visual cues for what to do next.

Not My Job Instead of complaining, find ways to make your job easier and more

interesting.

GoalsThe managements goal is the same as yours.

LoyaltyLookout for your company, it has the same goal as you.

Implementation

TheToyota Production System is known for kaizen, where all line personnel are expected to stop their

moving production line in case of any abnormality and, along with their supervisor, suggest an

improvement to resolve the abnormality which may initiate a kaizen. The cycle of kaizen activity can

be defined as:

Standardize an operation and activities.

Measure the standardized operation (find cycle time and amount of in-process inventory)

Gauge measurements against requirements
http://en.wikipedia.org/wiki/Toyota_Production_Systemhttp://en.wikipedia.org/wiki/Toyota_Production_System


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Innovate to meet requirements and increase productivity

Standardize the new, improved operations

Continue cycle ad infinitum

Five main elements of Kaizen

Teamwork

Personal discipline

Improved morale

Quality circles

Suggestions for improvement

Benefits & Application Of Kaizen

Where Kaizen is properly applied, facilities will experience many benefits. Managers often

become more effective leaders, work area personnel are motivated and employees begin to

operate as a cohesive unit. The end-result is an environment fostering teamwork and employees

working together to achieve common goals.

Not only does Kaizen help all employees improve the workplace, facilities experience many

economic benefits. Often, these include increased profits and lower costs. Managers actually

stand to benefit the most from the application of this philosophy. Kaizen provides managers


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with access to a constant flow of new ideas to improve their facility. Many of these are ideas

only a Kaizen workforce will communicate to management. Once implemented, their effect can

ripple through a facility and positively influence many unforeseen elements.

Often, uncovering issues management would not know of otherwise. Of course, these are

benefits only realized by disciplined managers. To be rewarded, they must work to support

Kaizen at every given opportunity and seek new ideas from all employees. Eventually, all

employees will grow to respect these managers. The result helps managers become more

effective leaders and brings greater value to the work they provide.

This style of management not only helps managers, it also empowers workers by making

them responsible for managing the implementation of their own ideas. Workers become focused

on achieving the same efficiency-improving and profit-increasing goals as management. Several

popular application strategies are listed in this guide to help properly apply Kaizen. Since no two

facilities are the same, these are only suggested strategies and should be modified to best suit a

facilitys individual needs.

SUCCESS STORIES

One of the largest auto manufacturers in the world is well-known as a pioneer in Kaizen. This

manufacturer, a well-known Japanese company, is credited with formalizing the philosophy and

helping turn it into a globally accepted management philosophy as early as the 1960s. Since then,


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the company claims to have experienced many successes through the continued practice of

Kaizen. In one example, company managers claimed to have received over 75,000 suggestions

from 7,000 employees in a one year period. Of these suggestions, 99% were implemented.

These are unusual results, but clearly achievable with the proper application of Kaizen. One can

only imagine how much money the company saved by implementing this many improvements.

In Kaizen, the implementation of an idea is viewed only as one small

improvement in a continual search for other improvements. However, these individual

improvements add-up over time and can provide substantial benefits for any facility. Quality,

customer service and even sales can increase, while safety issues and sick days decrease. In

addition, employees working in a Kaizen facility generally find work to be easier and more

enjoyable. This results in higher employee morale, job satisfaction and lower turn-over. With

every employee looking for ways to make improvements, facilities may see several fundamental

benefits:

Improved productivity

Improved quality

Reductions in safety issues

Quicker deliveries

Lower costs

Increased customer satisfaction

Kaizen is known to be beneficial to facilities facing economic challenges. In Japan, facilities

applying Kaizen were known to overcome many great economic obstacles. In fact, post-WWII

Japan was far from an ideal environment for unbridled economic growth. Yet, it occurred.


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Thanks, in part, to Kaizen. Like the implementation of any new method or process, applying

Kaizen does require a brief period of adjustment. At first, employees and managers may be

reluctant to make changes in their roles. Preparing a long list of employee and facility-wide

benefits can help overcome this resistance and open the door to greater acceptance. In general,

facilities are going to benefit from Kaizen differently as will many employees. However, there

will be some common and facility-wide benefits for each employee. Early on, these benefits

should be shared with employees during regularly scheduled facility meetings, along with any

success stories, to help foster Kaizens continued acceptance and use.

PIT FALLS IN KAIZEN

Resistance to change

Lack of proper procedure to implement

Too much suggestion may lead to confusion and time wastage

Purpose

To Define the Kaizen working i.e. defining the Kaizen, defining the role of Kaizen pillar team,

Format and procedure for kaizen recording and submission of Kaizen, Defining the Rating


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system - Kaizen Reward and Recognition policy, Horizontal Across plants Kaizen deployment

policy.

Kaizen

Kai (Change) and Zen (For Good). Any change for Good can be termed as Kaizen.

Kaizen is any small improvement done in the current working procedure, equipment

Condition or any process leading to benefits to the person doing Kaizen and company. Kaizen

will be recognized only when the format is filled, idea is implemented and expected benefits are

understood/ verified by sectional head / AET leader.

Key Elements of Kaizen are Quality,

efforts, Involvement of all employees, Willingness to change and Communication.

KAIZEN is a (relatively) low cost, simple, team-based approach Kaizen Pillar Team


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The Kaizen Pillar Team

Pillar team means a Team made from a combination of various AETs Members lead by

a Manager, the team responsible for making the Kaizen drive happening at plant level.

The team meets fortnightly to review its implementation progress, identify/overcome

barriers, celebrate successes, and document its processes.

The Team is also responsible for finding out the opportunity of Kaizen implementation at

cross-functional area i.e. Horizontal deployment of achieved Kaizen; the champion will

track and record the progress of Horizontal deployment.

Role of Pillar Team Members

As each member is also a part of AETs he will be reporting Kaizen progress in two

meetings viz. AET meetings and Kaizen pillar meeting.

Ensuring the Kaizen movement in there section and are named as leader / contributor for

kaizen movement in section.

Communication / Coordination of Kaizen implementation requirement and highlighting

the requirements of some bigger Kaizen required intersectional representation/co-

ordination in Kaizen pillar team meeting.

Making the action plan of why and how Kaizen activities are going good or bad in his

section and how he is planning to improve the same.


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Verification of the submitted Kaizen before signing and forwarding it to AET leader for

evaluation and recording it to Kaizen recorder.

Along with AET leader assessment of Kaizen and rating to the Kaizen (Quality Kaizen or

Non-quality Kaizen)

Posting and forwarding the Kaizen in soft on weekly basis to Kaizen recorder.

Role of Kaizen Champion

Receiver / Coordinator / Recorder / Leader / Policy Maker / Evaluator / Motivator

Recording the No. Of Kaizen category wise.

Forwarding the Quality Kaizen to the Kaizen evaluation team, working with team for

evaluation of Quality Kaizen ratings.

He should be involved in getting the benefits clarified and certified by external auditors.

Representative of the plant in Kaizen pillar external review meetings.

Updating Kaizen in KM and will coordinate and keep track of horizontal deployment /

progress of kaizen within plant.

Uploading the Best Kaizen in completely filled format for easy deployment in other

location. (Not only in Summary sheet)

Kaizen Pillar Champion should make MIS for Kaizen progress and should forward the

same to ME cell coordinator of the plant.

He is responsible for communication of potential Horizontal deployment opportunity of

Kaizen implementation across plant and should ensure the communication of acceptance


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of deployment of kaizen from other plant is happening also should keep a track of actual

implementation status of these Kaizen opportunities.

Role of AET leader

After receiving the signed Kaizen format from Kaizen coordinator AET leader and

Kaizen coordinator to assess the Kaizen whether it is Quality Kaizen or Non-quality

Kaizen and rate the Kaizen according to the guidelines given below

After review it is the Joint responsibility of AET leader that Kaizen filled format is

submitted to Kaizen recorder of the Plant

Role of Sectional officers

Officers role is facilitator, whenever any kaizen is suggested by operator for

implementation, all the help required for implementation to be extended by officer. His

name should not appear on kaizen form.


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Role and Team Composition Kaizen review team

The cross sectional Kaizen coordinators team of 3~4 members will verify the Kaizens

from other sections.

These team members will evaluate the Fortnightly submitted Quality Kaizen of rating

system attached with this document.

The details will be recorded by Kaizen champion

This team will also be responsible for making action plan along with sectional Kaizen

coordinator where the movement is not happening

Kaizen Recording and Evaluation Process

After completion of idea implementation it can be recorded in attached format the format

should be filled and signed by the person completing the Kaizen along with team member

played the supportive role to sectional Kaizen coordinator or AET Leader

Sectional coordinator will verify the implemented kaizen and will submit the filled form

after signing to sectional AET leader.

AET leader and Kaizen coordinator to assess the Kaizen whether it is Quality Kaizen or

Non-quality Kaizen and rate the Kaizen according to the guidelines given below.

Kaizen coordinator will forward the Kaizen forms to Kaizen recorder after uploading the

details in the File weekly.


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Kaizen recorder will record the Kaizen in summary file.

Kaizen recorder will give the area wise quality Kaizen to the Kaizen review team All the

quality Kaizen will be reviewed by this team fortnightly and confirm the ratings.

The Kaizen review team will also check the possibility of deployment of Kaizen in other

areas and will communicate to other AET leader/ section heads.

Kaizen review team will meet fortnightly to review the Kaizen.

Reward and Recognition Policy

General Guideline

Irrespective of importance and saving potential No plant personnel has got a right in term of

committing any financial or non financial benefits to person or group of person apart from the

guidelines mention in this document.

The price distribution, updating in guidelines is the sole rights of GNP management. Union or a

group of unionized people participation in demanding a change in guidelines will not be

entertained.


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1stLevel Rating of Kaizens (1

stYear Of Kaizen Launch)

This Scheme will be applicable for initial one Year of Kaizen Launch and

implementation the focus is to have kaizen from all employees.

2 Persons name can be mentioned on Kaizen form

Both the persons will be entitled for Getting Kaizen counted on their names.

The Award will be given on Based on No. Of Kaizen completed by the Person

The Awards will be given to the Persons on 10,25,50,100,150,200,250,300,350,500 and

more than these No. of Kaizen.

Along with No. of Kaizens the Quality Kaizens giving the savings of more than > 15000

pa will also rewarded as equal to 5 Kaizens and if an employee gives such type of

Kaizens will be rewarded once he reaches No. Equal to 10,25,50,100 etc.

The award amount will be

No. of

Kaizen

Award Amount No. of

Kaizen

Award Amount

10 < Rs. 75 250 < Rs. 500

25 < Rs. 125 300 < Rs. 550

50 < Rs. 225 350 < Rs. 600

100 < Rs. 300 400 < Rs. 700

150 < Rs. 400 450 < Rs. 750

200 < Rs. 450 500 < Rs. 1000


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2nd

Level Rating of Kaizens (After One Year of Kaizen Scheme Launch)

Any Kaizen will get one point irrespective of grade.

Quality Kaizen will be rewarded 3 or 5 points based on the below mentioned

criterion.

If any employee gives 5 Kaizens in a month, one bonus point will be awarded.

Initiator will get full marks and assistant will get half points

If some Kaizen is exceedingly good and helpful to other sections or factories, Kaizen

review team can award 10 points after getting approval from Kaizen leader.

Individual Rewards will be based on points.

Individual Rewards will be for 10,25, 50, 100 points. & Multiples of 50 points

The employee getting maximum points in a month will be rewarded as Kaizen King

of the month (He will be rewarded with a Gift amounted Rs. 150


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The Scheme of Reward will be

Note

Once the

Person

Touches

the 1000

Point

score his

score will

restart

from

Zero

Level

Kaizen trophy will be given to the section that scores maximum.

Kaizen score will be calculated as the multiplication factor of % participation and

Points per person.

% Participation = No of persons giving Kaizens / total no of persons in the section.

Points /person = Total points of the section/ total no of persons in the section

Kaizen trophy will be given every month.

A section, winning trophy for consecutive three times will retain the trophy.

Kaizen Points Award Amount Kaizen Points Award Amount

25 < Rs. 125 500 < Rs 500

50 < Rs. 225 550 < Rs. 525

100 < Rs. 275 600 < Rs. 550

150 < Rs. 325 650 < Rs. 575

200 < Rs. 350 700 < Rs. 600

250 < Rs. 375 750 < Rs. 625

300 < Rs. 400 800 < Rs. 650

350 < Rs. 425 850 < Rs. 675

400 < Rs. 450 900 < Rs. 700

450 < Rs. 475 1000 = Rs. 1000


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Criterion for rating Quality Kaizen

Criterion 3 points 5 points

Stress reduction / ease of

o eration

Substantial stress

reduction

Substantial stress reduction coupled

u with increase in roductivitProductivity 5 ~ 10 % increases in

roductivit

> 10 % increase in productivity

Recurring cost saving

>10000 & 25000 per annum

One time >5000 15000

Safety Permanent measures for prevention

of accidents / near misses1.Substantial improvement in

e ui ment condition2. Breakdown Prevention

Quality Consistency in current

erformance of rocess/

Up gradation of quality of process /

roduct

Cost saving

Equipment condition and

efficiency

1.Substantial

improvement in

equipment condition


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Launch of Kaizen at Workplace or Factory

1. Making a Kaizen Pillar TeamIdentification of members and champion.

2. Sharing of Kaizen Presentationconcept to the team members

3. Reward and Reorganization scheme with team members

4. Forming a Policy statement for Kaizen Pillar

5. Identification of one block in the AET board - dedicated to Kaizen/ improvements.

6. Making the role and responsibility clear to Kaizen pillar team members.

`


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KANSAI NEROLAC PAINTS LIMITED

Origin & Evolution of Nerolac:-

It is the second largest coating company in India and market leader in Industrial Coatings. Its

Industrial Coatings it has a wide range of products in the Automotive, Powder, General Industrial

and High performance Coatings space. Nerolac paints, as it is popularly known, is an established

brand in decorative paints.Kansai Nerolac Paints Ltd is a subsidiary of Japan based Kansai Paint

Company Limited, which is one of the top ten coating companies in the world. The technological

edge of Kansai helps us constantly innovate and come up with products that meet consumer need

gaps. Kansai Nerolac has always believed that the key to its business is :

Technology

Research & Development

Innovations

Quality


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Year 1920, we began as Gahagan Paints and Varnish Co. Ltd. in Mumbai. The journey is marked

by moving from strength to strength in every sphere of business be it product introductions

through innovation, value engineering and superior technology.

1920:We started our journey as Gahagan Paints and Varnish Co. Ltd at Lower Parel in Mumbai.

1957:Goodlass Wall Pvt. Ltd grew popular as Goodlass Nerolac Paints (Pvt) Ltd. Also, it went

public in the same year and established itself as Goodlass Nerolac Paints Ltd.

1976:Goodlass Nerolac Paints Ltd. became a part of the Tata Forbes Group on acquisition of a

part of the foreign shareholdings by Forbes Gokak.

1983: Goodlass Nerolac Paints Ltd. Strengthened itself by entering in technical collaboration

agreements with Kansai Paint Co. Ltd, Japan and Nihon Tokushu Toryo Co. Ltd, Japan.

1999:Kansai Paint Co. Ltd, Japan took over the entire stake of Tata Forbes group and thus GNP

became wholly owned subsidiary of Kansai Paint Company Ltd.

2006:On the 11th

of July, Goodlass Paints Ltd. name has been changed to Kansai Nerolac Paints

Ltd.

Management & Key People

The people who make the company are its real assets.

At Kansai Nerolac, we stand by this. The success of Kansai Nerolac has hinged on this

philosophy since 1920, and being the second largest paint company in India is the rightful tribute

to its people's commitment and dedication.


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With employee strength of around 2000 spread over the country and an efficient management,

the company provides the conducive work atmosphere to develop and grow. Our team of Ph.D's,

engineers and technicians visit collaborator's plants abroad to update themselves with the latest

techniques.

Board Of Directors

Dr. Jamshed Jiji Irani Chairman

Mr.Devendra Motilal Kothari ViceChairman

Mr.Harishchandra Meghraj Bharuka Managing Director

Mr.Susim Mukul Datta Director

Mr. Hiroshi Ishino Director

Mr. Pradip Panalal Shah Director

Mr. Noel Tata Director

Mr. Pravin Digambar Chaudhari Wholetime Director

Mr. Yoshikazu Takahashi Director

Mr. H. Nishibayashi Director


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Management Committee Members

Name Of The Person Designation

Mr. H.M. Bharuka Managing Director

MR. Pravin Chaudhari Director

Mr. Shrikant Dikhale Vice PresidentHR

Mr. Anuj Jain Director - Decorative Sales-Marketing

Mr. Mahesh Mehrotra Vice President - Technical

Mr. Hitoashi Nishibayashi Director Supply Chain & Auto Marketing

Mr. P.D. Pai Vice President - Finance

Mr. Jason Gonsalves Vice President - Corporate Planning & IT

Mr. Sudhir Rane Vice PresidentAutomotive Coatings


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Quality

It is the philosophy of Kansai Nerolac Paints Ltd., and its associates to achieve complete

customer satisfaction by providing products and services that consistently meet or exceed the

customer needs and expectations, pursuant to agreed specifications, delivery schedules and

competitive prices. It is the philosophy of the company to systematically operate its

manufacturing facilities by inculcating commitment to total quality management at all levels and

on a continuous basis with a view to achieving First Time Right results in manufacture,

services and other operations.

In continuation of our efforts to achieve highest Quality standards we the Kansai Nerolac Paints

Ltd have successfully implemented various Quality Managements Systems in our organization.

All manufacturing locations of KNPL have been certified for ISO 9001-2008

Being major Industrial paint manufacturer & supplier to OEM customers KNPL has also

implemented QMS as specified by ISO/TS 16949 standard .Our industrial paint manufacturing

locations are certified for ISO/TS 16949 -2009

The Japanese 5-S and TPM (total productive maintenance) concepts have been implemented in

organization.


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Quality Policy

We are committed to provide total customer satisfaction by supplying Quality products and

services to meet or exceed customer requirements.

Safety

The Company takes the greatest possible care to ensure the safety, health and welfare of its staff

and the communities living around its facilities. All manufacturing locations are OHSAS-18001

certified. Safety is given paramount importance across the organization. Safety and occupational

health programme are in place to ensure the wellbeing of employees and facilities at all

locations. The safety management system is in line with guidelines set by the British Safety

Council.


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The HR Angle

The HR Philosophy:-

At Nerolac we recognize our human resources as extremely important and critical assets. We

honor the dignity of each individual, irrespective of position and highly value the feelings and

emotions of people.

Our Human Resource Policy is, to facilitate creation of synergy, mutuality and interdependence

between individual and corporate development and growth through total employee involvement

and building an enabling work culture in the organization.

Informality in interactions, transparency and openness in communications at all levels, and an

enabling work environment supporting high autonomy of work, transparency and an objective

subjectivity of Performance Management System, fair dealing, tremendous care and concern for

people are a few of the softer aspects of permeable people management environment which

represent the organizational climate and culture. Our faith is averred by the fact that people feel

pride in being part of the Nerolac family. We care for people; people care for our business.

To provide for a policy framework so as to institutionalize the Performance Management

System by developing an integrated process of KRA setting, self assessment, appraiser and

reviewer evaluation which is transparent and helps creating a performance driven culture

whereby organisation members are committed and motivated to continuously excel, thus leading

to individual development and organisational growth.


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2. Objectives

2.1 To provide a framework for systematic planning of the Key Result Areas (KRAs) at the

beginning of each financial year.

2.2 To facilitate periodic reviews through self assessment and appraiser evaluation.

2.3 To provide employees useful performance feedback and developmental inputs.

2.4 To ensure an objective evaluation of employee performance.

2.5 To provide inputs for determining Compensation and Incentives payable.

2.6 To provide inputs for training needs for development of individual employees.

2.7 To evaluate employees on Corporate values.

3. Process

3.1 The performance appraisal process will be applicable to employees in Managerial, Executive

and Sales category.

3.2 The process of performance appraisal shall start with the exercise of KRA setting in the

month of March/April every year. For the new joinees the KRAs should be set within the first

one month of the employee joining. Based on the role & job description of an employee, the key

result areas for the next financial year will be worked out and mutually agreed upon by the

immediate appraiser and the employee along with the weightages of each KRAs. These key

result areas will form the basis of overall performance targets of the employee and they will be in

terms of Qualitative & Quantitative parameters and Sales KRAs wherever applicable. (Ref.

Annexure 6.1 & 6.2)

Key Result Areas (KRAs) refer to focused areas of outputs or outcomes for which a role is

responsible. These are tasks and activities that are most important in evaluating individual


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performance towards achieving organizational goals. A typical role will have targets of three to

five Quantitative & Qualitative KRAs.

3.3 TheKRA plan will be reviewed periodically (ideally 2-3 times a year). The fourth quarter

will be the Annual Performance Appraisal and will provide for data that would aid in various

other processes of compensation, promotion, reward and recognition career progression &

employee development.


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3.4 The entire process of appraisal from Setting of KRA to the Annual review will be facilitated

by the Corporate HR through the Employee Self Service (ESS) portal in HRScapes which is an

online tool accessible to all employees in Managerial, Executive and Sales Category.

3.5 While setting the KRAs, the appraiser will enter Quantitative, Qualitative, and Sales KRAs

(as per the applicability) for the appraisee and will send the same to him/her for consideration

and acceptance. The appraisee will either accept the set KRAs or send to the appraiser for

reconsideration in case he/she has to suggest any other view point. The process of KRA setting

will be completed by mutual agreement on the same by the appraiser and the appraisee. The

criteria while setting KRAs will be as below:

(1) Alignment with the organisational goals.

(2) Relevance to given roles

(3) Specific & Measurable

(4) Under employees control (Achievable)

(5) Understood and accepted by appraise

AppraiseeOne who is appraised; one undergoing an appraisal

AppraiserThe immediate supervisor of the appraisee

ReviewerThe immediate supervisor of the appraiser

3.6 The KRA review will be triggered as per the review period agreed. The appraisee will assess

himself/herself on each KRA and send the self assessment to appraiser for further evaluation.

The appraiser shall call the appraisee for the KRA performance review meeting and discuss the


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progress on each KRA at length, give constructive feedback and guidance and record the

agreements/disagreements before arriving at the achieved scores. (Ref Annexure 6.3 & 6.4)

3.7 The annual appraisal process or the final quarter review will be triggered in the end of the

financial year. During the annual review, the Appraisee will also assess himself/herself on the

competency framework (as per the applicability) and will be evaluated on the Corporate Values

too. The appraiser can make recommendations regarding promotions based on the Performance

and Potential of the person. For promotion proposal it will be necessary for Appraiser to give full

justification for the recommendation made. (Ref. Annexure 6.5, 6.6 & 6.7)

3.8 The scores and promotion recommendation given by the appraiser and evaluated by the

reviewer can be moderated by the HOD jointly with Corporate HR in an attempt to differentiate

the various members of the team based on their performance in line with the suggested

distribution matrix given below, as well as taking into consideration factors such as business &

location complexities and unforeseen environmental changes.

3.9 The appraiser and reviewer will indicate the key areas of development for the individual w.r.t

to competencies and function specific skills so as to determine training needs. The HR

department will pool the inputs from this process and work jointly with the departmental head

for nominating employees for training programs. The needs identified from this process are

Holistic in nature and it may not be necessary that the training will be imparted to all employees

for all the needs identified. The needs compiled will be re-confirmed at a later stage with the

HODs. (Ref. Annexure 6.8)

3.10 In case of change of role of the appraisee due to reason such as inter function transfer, promotion,

role enhancement etc. the new/updated Quantitative and Qualitative KRAs (as per the applicability) will

be assigned by the appraiser in the beginning of the forthcoming quarter.


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. 4:APPLICABILITY

The process of Performance Appraisal is applicable to the following category of employees and

has the given areas of emphasis:

Employee

Category

Grade Quantitative

KRA

Qualitative KRA Competency

Framework

Managers A to MP Yes Yes Yes

Executives E1, T1, S1 Yes Yes Yes

Executives E2 to E4, T2 to

T3, S2 to S3

Yes Yes Yes

Executives E5 to E6 No Yes Yes

Sales TSE to TSS No Yes Yes


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5. GENERAL

5.1 The suggested distribution of performance appraisal ratings for all categories of employees

is as under:

Performance Level Rating No. of employees Remarks

Excellent A 05% Exceeds expectations

Above Average/Good B 25% Meets or slightly

exceeds expectations

Satisfactory C 65% By and large meets

expectations and is a

current fit

Below Average D 5% Exit Plan

The above distribution matrix is only indicative in nature as such and the Management

Committee, depending on the needs and circumstances can vary it.


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6. Appendix:

6.1 Screen on Quantitative KRA setting window


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6.2 Screen on Qualitative KRA setting


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6.3 Screen on Self AssessmentQuantitative KRAs


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6.4 Screen on Self AssessmentQualitative KRAs


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6.5 Screen of Competency Review


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6.6 Screen on Core Values Review


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6.7 Screen on Promotion Justification


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6.8 Screen on Developmental / Training Inputs


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Cultural Ethos

Vision driven organization

Employees feel pride in being part of the organization

Recognition of human resources as extremely important and critical assets

High level of human dignity

Transparency and openness among employees at all hierarchical levels

Performance-linked reward system

Management and employee commitment to organization values is high

Autonomy in work is high

High commitment to quality products

Open Door Policy:-

Working together requires that we have a friendly atmosphere based on trust and respect

amongst all of us.

At Nerolac we follow an Open Door policy. Any person is free and welcomed to share good

idea, suggestion, doubt, problem about job or work place, or uncertainties about ones future in

the organization. An open and transparent communication is appreciated.


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Corporate Values

Vision Values and Culture:-

In todays dynamic business environment, no organization can afford to survive without a well -

articulated and carefully thought vision stating the overall strategic direction and long-term

future of its business.

We have been at the forefront of paint manufacturing over eight decades pioneering a wide

spectrum of quality products that change the face of economy and lifestyles of people at large.

It is our vision to leverage global technology, for serving our customers with superior coating

systems built on innovative and superior products and world class solutions, to strengthen our

leadership in Industrial coatings and propel for leadership in Architectural coatings, all to the

delight of our stakeholders.

We firmly believe that it is not only the vision of where we wish to go which will form a

cornerstone of all our further growth, but also our conviction to the fact that the values based

proposition has to be ultimate foundation of our business.

To this end we consciously have internalized and been practicing these values in all our business

transactions though human beings:

Innovation

Entrepreneurial

Responsive

Simplicity

Team Orientation


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SOCIAL CONDUCT

Kansai Nerolac Paints Ltd, as a professional organization, encourages growth of individuals

irrespective of gender, religion, caste or community. Through all the policies, the organization

focuses on ensuring that no preferential or discriminatory treatment is meted out to anyone on

grounds of gender alone. The primary focus of this policy is to ensure a congenial work

environment that is free from threat or fear.

OBJECTIVE:

The objective of the policy is:

To ensure and emphasize that any verbal or physical conduct of any employee that

harasses, disrupts or interferes with anothers work performance or that creates an

intimidating, offensive or hostile environment, would not be tolerated.

To provide an appropriate complaint mechanism to redress the complaint made by the

victim.

To provide a conducive and productive environment in the workplace and to reaffirm

commitment to maintain work environment free from all forms of harassment and

discrimination.


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SCOPE:

The policy is applicable for all employees of the organization, which includes corporate

office, branches, depots and manufacturing locations etc.

The policy is applicable to nonemployees as well i.e. business associates, vendors,

trainees etc.

The policy is applicable to all the employees who have been a part of any such an issue, which

may have arisen during their tenure of service and includes preventive measures,

complaints procedure and redressal mechanism to deal with such problems.

DEFINITIONS:

Based on the guidelines given by the Supreme Court given below are details of what would be

considered harassment.

1. Harassment:

Harassment is defined as conduct that is insulting, intimidating, humiliating, offensive or

physically harmful. Types of behavior which constitute harassment include, but are not limited

to: (a) Unwelcome jokes, innuendo or teasing about a persons looks, body, attire, age, race,

religion, sex or sexual orientation.

(b) Condescending, patronizing, threatening or punishing actions which undermine self esteem

or diminish performance.

(c) Practical jokes, which cause awkwardness or embarrassment, endanger a persons safety or

negatively affect performance.

(d) Unwanted or unnecessary physical contact including touching, patting or pinching.

(e) Any form of physical assault or abuse


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(f) Any sexual offence.

2. Sexual harassment:

Sexual Harassment, includes such unwelcome sexually determined conduct (whether

directly or by implication) as: Physical harassment:

(a) Physical contact and advances.

(b) Intentional touching, pinching, grabbing, brushing against another.

(c) Sexual assault

(d) Cornering, trapping or blocking a persons pathway.

(e) Excessively lengthy handshakes

(f) Any unwelcome physical or non -verbal conduct of sexual nature.

3. Verbal Harassment:

(a) Gestural harassment by way of making sexually suggestive or offcolour comments,

innuendos, threat, slurs and sexual propositions including a demand or request for sexual

favours.

(b) Sexual jokes or sexually coloured / gender-specific remarks or jokes or teasing. (c)

Comments about appearance, especially parts of body


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Awards and Achievements:-

While we look to the future, it is important to bask in past glory. Nerolac has won many

accolades for its stupendous work in product development, environmental consciousness and in

being a responsible corporate citizen.

'Golden Peacock Environment Management Award 2005' for environment management of

Jainpur factory & DSIR National Award ACED for adaptation of technology to suit local

needs.

Short listed for the Best Managed Company award from Business Today & A.T. Kearney

2005.

Best Vendor Award from customers like Toyota Kirloskar Motors (TKML) for Cost & from

Maruti Udyog (MUL) on overall commendation.

Awards for Marketing initiatives like Cannes2007 Bronze for press Ad


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Emvies 2007 Gold & Silver for Best Media innovation, Best case study-Media

innovation(Impression Rang Zamade), Best Integrated Campaign, Best Media strategy &

Peoples Choice Award

Readers Digest Trusted Brands Gold Award for 2008

Frost & Sullivan Market Leadership Award in Indian Industrial Paints & Coating Market

Hall of Fame from CTO Forum, PC Quest & Best Implementation-APO in IT

Excellence in Corporate Governance from ICSI

Greentech Environment Excellence Gold & Silver for Bawal & Chennai units

Association of Business Communicators of India, Silver for Annual Environment Report.

Environmental Excellence Gold Award by Greentech Foundation for the Lote Plant for the year

08-09.

Nerolac Beauty Flexi won Product of the year award (2008-09) in the paint category.

Asia Manufacturing excellence Award (AMEA) conducted by Frost and Sullivan for Lote and

Jainpur Factories November 2009

Consolation prize in the Energy Conservation Awards by Tata Power November 2009

Our Technical Partners (NIPA Chemical Chennai), was awarded with TKMLs Best delivery

performance award. April 2009

Golden peacock Innovative Product/service Award for the year 2011 for Nerolac Impression

Ecoclean ultra Luxury Emulsion

Out Standing Company in Paints & Coatings sector for the year 2010 by EPC World Awards

2010


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Golden Peacock Award 2010 for most innovative product/service category for introduction of

3C1B technology of paint in the Automotive paint segment category.April 2010

Best Delivery Performance Award by Whirlpool India Ltd at FaridabadApril 2010

Award for the Most Proactive Contribution through New Developments in Powder Coatings

by Godrej Appliances Ltd April 2010

Product of the Year Award 2010 for Nerolac ExcelApril 2010

Product of the Year 2011 for Nerolac Excel Total with Heat-guard Technology April 2011)

SAP Ace Award 2011 for the Best run Business in consumer and Trade Industry 2011

Sustainability Award for outstanding contribution by Mahindra and Mahindra - October 2011

Kansai Nerolac Paints rated at level 4 out of 5 in the Karmayogi ratings for the Corporate Social

Responsibility initiatives 2011

Best vendor PERFORMANCE AWARD in Paint Suppliers Category by Honda Motor cycles

and scooters at their annual conference Jan 2012


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KAIZEN impact Flow Chart

management

briefing and projectplanning

education on kaizen process

team selection baseline and objectives

project schedule

budget and resources

kaizen team trainingand planning

training on kaizen process and tools

identify and prioritise important projects

work assignmentbegin work

kaizen event

complete work assignment

implement improvements

document results

team presentation

and forwardplanning

kaizen team presentation

tour of improvement area

forward planning and schedule for next kaizen event


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RESEARCH METHODOLOGY

INTRODUCTION:

Research is a term that stands for a careful investigation or enquiry especially through

search for new fact in any branch of knowledge.

Research Methodology is way to systematically solve the research problem. In it we

study the various steps that are generally adopted by a researcher in studying his

research problem along with logic behind them. We also need to understand the

assumption underlying various techniques and procedures will be applicable to certain

problems and other will not. So it is necessary for us to design methodology for the

problem as it differs from problem. So research methodology is not only method

research but also logic behind the methods we use in context of our research study and

explain why we are using a particular method or technique and why we are not using

others so that research results are capable of being evaluated.

Marketing research is the systematic design, collection, analysis and reporting of data and

findings relevant to specific marketing situation facing the company. An effective

marketing research involves following five steps in a sequential manner.

Defining the research objective.

Developing research plan

Collecting the information

Analyze the information


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Present the findings.

DEFINING RESEARCH OBJECTIVE

Objective is the main theme on which is my job is based. Research is a good planning

of facilities and welfare of procedure to complete in the market. The objective of the

project should be very precise; it should neither be very broad nor be very narrow.

For this research I defined the following objective:-

To study the satisfaction level of employees with respect to their welfare in

KNPL, KANPUR and to suggest measures to strengthen this regime.

To study the practices, procedures & policies still to be satisfy to the employees

of KNPL.

DEVELOPING RESEARCH PLAN

The research plan is the main body or you can call the blue print in which we carry

the research. The research plans consist of data sources, research instruments, sampling

plan and contact methods.

1. DATA SOURCES:

a. Primary data:

Primary data are the data gathered for the specific research project and are directly taken

from the very source of information.


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Responses of employees through questionnaire.

b. Secondary data:

Secondary data are the data, which already exists and were collected for some other

purpose or for similar previous studies. Secondary data were proved to be instrumental in

structuring the questions to be asked for collecting primary data.

Various books on Human Resources.

Website of KNPL, www.nerolac.com

.

2. Research Instrument:

The two main research instruments in collecting primary data are:

A. Personal interview

B. Questionnaire

A.Personal interview

It is one of the important sources to collect primary data. Through personal

interview interviewer can ask question according to the research requirement. Data

which is collected by personal interview is more reliable than other sources.

B.Questionnaire

Questionnaire consist of a set of questions presented to the respondent for their

answer. Because of its flexibility the questionnaire is by far the most common


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instrument used to gather primary data. Questionnaire needs to be carefully

developed and tested before they are actually used on a large scale.

Questions are of two types:

Open ended

Close ended

Open Ended Questions:A type of question that requires participants to responds in his or her

own words without being restricted to pre-defined response choices is known as an open- ended

questions.

Close Ended Questions: Questions, which restrict the interviewees answers to pre-defined

responses options, are called close-ended questions.

SAMPLING TECHNIQUE: Simple Random Sampling.

Scale: 5- point scale

SAMPLING PLAN

After deciding on research and research instrument the researcher must design a sampling

plan. This plan calls for five decisions.

a) Sample population


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It is segment to Executive class and Non-executive class employees of KNPL.

b) Sampling Frame

Since the manpower of KNPL, KANPUR is 1989 of different grades, so the sample frame

is obtained accordingly.

c) Sampling Unit

The sample unit consists of all Executives and Non- executives of KNPL, Kanpur

d) Sample size

Though large sample give more reliable results than small samples. However, it is not

necessary to sample the entire population or even a substantial portion to achieve reliable

result. So after considering time constraint and cost effectiveness for the project total 50

peoples are surveyed.

.

e) Placeof information

KNPL, JAINPUR PLANT

KANPUR


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Analysis of Data

After the data have been collected, the researcher turns to the task of analyzing

them. The analysis of data requires a numbe r of closely related operations such

as establishment of categories, the application of these categories to raw data

through coding, tabulation and then drawing statistical inferences. The unwisely

data should necessary be condensed into a few manageable groups and tables for

further analysis. Thus researcher should classify the raw data into some

purposeful and usable categories. In the process of analysis, relationships or

differences supporting or conflicting with original or new hypotheses should be

subjected to tests of significance to determine with what validity data can be

said to indicate any conclusion.


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Kaizen Criteria and Methodology at KANSAI NEROLAC PAINTS Ltd

Kaizen criteria

Proposed Value of

Reward (Rs.) for the

period 12-13

Period / Frequency of Consideration

>= 50 < 150 ( Kaizen points ) Rs.200

On the basis of cumulative scores

Annually

>= 150 < 300 ( Kaizen points ) Rs.600

>= 300 < 450 ( Kaizen points ) Rs.1000

>= 450 < 500 ( Kaizen points ) Rs.1500

>= 500 ( Kaizen points ) Rs.2000

Highest No. of Gold (20 point)

Kaizens a) Rs.500Monthly

Monthly

Highest No. of Silver (10 point)


Highest No. of Bronze (6 point)


AET / CANDOs with Highest no.

of -

a)Number of Kaizens per

employee,

b)Gold Kaizens per employee,

Personal Appreciation - RS

400 to Kaizen coordinator

of AET and Rs. 600 to team

for small get together

Annually


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c) Silver kaizens per employee,

d) Bronze Kaizens per employee,

e) % operators' participation,

f) % Officers' participation,

g)% KM portal upload wrt total

Quality Kaizens,

Best Plant with Highest no. of

(plant kaizen coordinator)

a)Number of Kaizens per

employee,

b)Gold Kaizens per employee,

c) Silver kaizens per employee,

d) Bronze Kaizens per employee,

e) % operators' participation,

f) % Officers' participation,

g)% KM portal upload wrt total

Quality Kaizens,

Suitable gift as decided by

HO

Annually(Only one gift interplant )

Notes:

1. Monthly' reward is a one time reward for the performer in its category in that month and not recurring.

2. Annualreward is a one time reward for the performer in its category in that year and not recurring.


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On the basis of PDCA cycle and 5S kaizen work which are under follows

THE PDCA CYCLE

The cycle of Kaizen which I have researched in KNPL, JAINPUR activity can be

defined as:

Standardize an operation and activities.

Measure the standardized operation (find cycle time and amount of in-process

inventory)

Gauge measurements against requirements

Innovate to meet requirements and increase productivity

Standardize the new, improved operations

Continue cycle ad infinitum
http://en.wikipedia.org/wiki/File:PDCA-Two-Cycles.svg


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This is also known as the Shewhart cycle, Deming cycle, or PDCA. Other

techniques used in conjunction with PDCA include 5 Whys,which is a form of root

cause analysis in which the user asks "why" to a problem and its answer five successive

times. There are normally a series of root causes stemming from one problem, and they

can be visualized using fishbone diagrams or tables.

The Origins of 5S

5S was developed in Japan. It was first heard of as one of the techniques that enabled what was

then termed Just in Time Manufacturing. The Massachusetts Institute of Technologys 5-year

study into the future of the automobile in the late 1980s

identified that the term was

inappropriate since the Japanese success was built upon far more than components arriving only

at the time of requirement. John Krafcik, a researcher on the project, ascribed Lean to the

collective techniques being used in Japanese automobile manufacturing; it reflected the focus on

waste in all its forms that was central to the Japanese approach. Minimised inventory was only

one aspect developed by Hiroyuki Hiranowithin his overall approach to production

systems. Many Western managers coming across the approach for the first time found the

experience one of enlightenment. They had perhaps always known the role of Housekeeping

within optimised manufacturing performance and had always known the elements of best

practice. However, Hirano provided a structure for improvement programs. He pointed out a

series of identifiable steps, each building on its predecessor. Western managers, for example, had

always recognised the need to decide upon locations for materials and tools and upon the flow of

work through a work area; central to this (but perhaps implicit) is the principle that items not
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essential to the process should be removed stored elsewhere or eliminated completely. By

differentiating between Seiri and Seiton, Hirano made the distinction explicit. He taught his

audience that any effort to consider layout and flow before the removal of the unnecessary items

was likely to lead to a sub-optimal solution.

Equally the Seiso, or cleanliness, phase is a distinct element of the change program that can

transform a process area. Hiranos view is that the definition of a cleaning methodology (Seiso)

is a discrete activity, not to be confused with the organisation of the workplace, and this helps to

structure any improvement program. It has to be recognised, however, that there is inevitably an

overlap between Seiton and Seiso. Western managers understood that the opportunities for

various cleanliness methodologies vary with the layout and storage mechanisms adopted.

However, breaking down the improvement activity in this way clarifies that the requirements for

the cleanliness regime must be understood as a factor in the design aspect of Seiton. As noted by

John Bicheno. Toyotas adoption of the Hirano approach, is 4S, with Seiton and Seiso

combined presumably for this very reason. The improvement team must avoid the trap of

designing the work area and then considering the cleanliness or tidiness mechanism.

Hirano also reminded the world of the Hawthorne Effect. We can all introduce change and while

people in the business consider the change program to be under management focus the benefits

of the change will continue, but when this focus has moved (as is inevitably the case)

performance once more slips. Western managers, in particular, may have benefited from the

distinction between the procedural or mechanical elements, Seiketsu, of keeping these matters in

focus and the culture change, Shitsuke, which is a distinct approach to bringing about a new way

of working. A number of publications on the subject in the West have questioned whether this

culture can really be tackled as part of an exercise of relatively limited scope.[5]

The broader
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kaizen, or continuous improvement, approach is built, among other things, upon the companys

valuation of all members of the workforce. If employees dont feel valued within the overall

company culture, perhaps the change required falls outside the limits of a Housekeeping

improvement program.

The Objectives of 5S

Hirano identified a range of benefits from improved housekeeping, all of which can be regarded

as falling within the Lean portfoliothat is, they are all based around the elimination of waste in

one form or another.

The most obvious benefit from items being organized in such a way (i.e. that they are always

readily available) is that of improved productivity. Production workers being diverted from

production to look for tools, gauges, production paperwork, fasteners, and so on is the most

frustrating form of lost time in any plant. A key aspect of Hiranos organisation approach is that

the often-needed items are stored in the most accessible location and correct adoption of the

standardisation approach means that they are returned to the correct location after use. Another

element of Hiranos improved housekeeping is improved plant maintenance workers owning

a piece of plant, responsible for keeping it clean and tidy, can take ownership for highlighting

potential problems before they have an impact on performance. (Of course, this brings with it the

interface with preventive maintenance and the need for clarity in the assignment map, that is

who does what. The division of tasks between production workers and specialist maintenance


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engineers varies with the nature of the business, but ownership rests within the business unit

rather than within the service provider.)

The next aim is Quality. The degree of impact of dirt in a manufacturing environment, obviously,

varies with the nature of the product and its process but there are few, if any, areas where dirt is

welcome. Even if it is only in the form of soiled documentation accompanying the goods to the

customer this can send a very negative message about the company and its culture. In other cases

dirt can have a serious impact on product performance either directly or indirectly, perhaps

through compromising the integrity of test processes. Of course, 5S does more than address dirt;

an inappropriate layout can result, for example, in product damaged through excessive

movement or through the use of tooling other than that defined as the standard. Standardisation is

a theme of Hiranos approach, overlapping to a considerable extent with, for example, that of

Ohno. A Standard Operating Procedure for tool certification is much easier to achieve if the tool

to be certified is always in a clearly-marked location.

Another goal is improved Health & Safety. Clear pathways between workbenches and storage

racks can minimise accidents, as can properly-swept floors. As with Quality, a well-organised,

clean and tidy facility lends itself more readily to standard practice. Hirano also described how

an environment in which the workforce has pride in their workplace can contribute to a

considerable extent in a number of ways including customer service. Improving the layout of the

facility merges with the concept of visual management; if workers can see the status of plant and

of work in the facility, thus removing the need for complex tracking and communication

systems, then benefits will accrue. 5S can also be a valuable sales tool when potential customers

visit; a well-organised, clean and tidy facility sends a message of a professional and well-

organised supplier.


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One point made by all practitioners is that the adoption of 5S must be driven by goals. An article

in the journal of the UKs Institute of Operations Management written by Mark Eaton and Keith

Carpenter of the Engineering Employers Federation noted that the successful implementation

of 5S requires that everyone understand why it is being used and what the expected results are.

As with all Lean techniques the aim is improvement in business performance; the adoption is not

an end in itself..


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5S are as follows

Phases of 5S

There are five primary 5S phases: sorting, straightening, systematic cleaning, standardizing, and

sustaining. On the basis of all these 5S best kaizen is been selected at KNPL.

Sorting (Seiri)

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 per requirements and keeping them in easily-accessible places. Everything

else is stored or discarded.

Stabilizing or Straightening Out (Seiton)

There should be a place for everything and everything should be in its place. The place for each

item should be clearly indicated. Items should be arranged in a manner that promotes efficient

work flow, with equipment used most often being the most easily accessible. 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 in other words, straightening the flow

path. Seitonis one of the features that distinguishes 5S from "standardized cleanup". This phase

can also be referred to as Simplifying.[1]
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Sweeping or Shining (Seiso)

Clean the workspace and all equipment, and keep it clean, 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. Spills, leaks, and other

messes also then become a visual signal for equipment or process steps that need attention. A

key point is that maintaining cleanliness should be part of the daily work not an occasional

activity initiated when things get too messy.

Standardizing (Seiketsu)

Work practices should be consistent and standardized. All work stations for a particular job

should be identical. All employees doing the same job should be able to work in any station 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.

Sustaining the Practice (Shitsuke)

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.


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RESEARCH WHICH IS BEEN DONE AT KANSAI NEROLAC PLANT

LIMITED

KAIZEN is an activity which every person employed in a company can do while giving

suggestions on daily basis or weekly or any change which a person can bring into the PLANT

that can lead in progress of KNPL. KAIZEN is mandatory done every month in KNPL so as to

motivate workers, employees by giving them rewards for giving best ideas that are successfully

implemented in KNPL and have lead to reduction in cost or time and have increased the moral

of workers by doing so .

While doing analysis in KANSAI NEROLAC regarding KAIZEN implementation in plant and

awareness in employees, contracters, operators and labours, taking a sample of 100 workers

and asking them do they know about KAIZEN?

The answer which I got from them was 50-50. 75% workers including labour said they do not

know what is this KAIZEN.

5% said they know about KAIZEN but do not initiate in this due to lack or shortage of time or

due to work load in production department.

20% said they are very well aware about this terminology and actively participate in this activity

and have gained rewards too in form of gifts, cash prize etc


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To over come this problem some step have been formed so that KAIZEN can be easy going for

each and every worker of the company:-

Finding Time for Kaizen Events

Work overtime to recover lost production

Reroute production to other area

Perform the event over a weekend

Run the event early in a production period

Finish period production early and then run the event

Take advantage of a slow time

Outsource some production to buy time

Run the event concurrent with production


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Basically the research work which has been done at KANSAI NEROLAC PAINTS

Ltd is if a contractor, officer, or any employee of a company make any KAIZEN and

implement it then under which THRUST area it will be kept and according to that under

which point categ

Documents

Summer Training Report in HR