KAIZEN

The Key to Japans Competitive Success

By MASAAKI IMAI

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TABLE OF CONTENTS
1. KAIZEN, The Concept
2. Improvement East and West 3. KAIZEN by Total Quality Control

4. KAIZEN, The Practice

5. KAIZEN Management

6. The KAIZEN Approach to Problem Solving

7. Changing the Corporate Culture

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CHAPTER I

KAIZEN The Concept

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KAIZEN Values

Kaizen & Management

Implications of QC for KAIZEN

KAIZEN & TQC

KAIZEN & The Suggestion System

Kaizen & Competition

Process Oriented Management VS Result Oriented Management

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JOBS FUNCTION PERCEPTIONS

Japanese perceptions Western perceptions

Top management Middle management Supervisors Workers

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Top Management
Determine to introduce Kaizen as a corporate strategy Provide support and direction for Kaizen by allocating resources Establish policy for Kaizen and cross functional goals Realize Kaizen goals through policy deployment and audits Build system, procedures, and structures conducive to Kaizen

Middle Management and Staff

Deploy and implement Kaizen goals as directed by top management through policy deployment and cross functional management Use Kaizen in functional capabilities Establish, maintain, and upgrade standard Make employees Kaizen-concious through intensive training programs Help employees develop skills and tools for problem solving

Supervisors

Workers

Use Kaizen in functional rules Formulate plans for Kaizen and provide guidance for workers

Engage in Kaizen through the suggestion system and small group activities

Improve communication with workers and sustain high morale Support small group activities (such as quality circles) and the individual suggestion system Introduce discipline in the workshop Provide Kaizen suggestions

Practice discipline in the workshop

Engage in continuous selfdevelopment to become better problem solvers

Enhance skills and job performance expertise with cross education

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Deming Wheel
Design

Research

Production
Plan

Sales

Act

PDCA

Do

Check

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Three Award in Sumo Tournament ; - An outstanding performance award - A skill award - A fighting spirit award

Focus more on process Rather than result !!!

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CHAPTER II

Improvement East & West

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KAIZEN

Continuous Improvement

INNOVA TION
Breakthrough

Science

Technology

Design

Production

Market

Innovation

KAIZEN

KAIZEN
Long term Un-dramatic

1
Effect

INNOVATION
Short term Dramatic

Small steps

Pace

Big steps

Continuous & incremental

Time frame

Intermittent & non incremental

Gradual & consistent

Change

Abrupt & volatile

Everybody

Involvement

Champion

Collectivism, group efforts, systems approach

Approach

Rugged individualism, individual ideas & efforts // YIS//062709//

KAIZEN
Maintenance & Improvement

2
Mode

INNOVATION
Scrap & Rebuild

Conventional know-how & state of the art

Spark

Technological breakthroughs, new inventions, new theories

Little investment Great effort to maintain

Practical Requirements Effort orientation Evaluation criteria

Large investment Little effort to maintain

People

Technology

Process & efforts for better results

Results for profits

Slow growth economy

Economic condition

Fast growth economy

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Standard Maintenance Actual Standard Maintenance Innovation Actual

Innovation

Time

Actual Standard

KAIZEN

Innovation + Kaizen
Innovation

Actual KAIZEN Standard Time // YIS//062709//

INNOVATION
Creativity Individualism Specialist oriented Attention to great leaps Technology oriented Information: closed, proprietary Functional (specialist) orientation Seek new technology Line + staff Limited feedback

KAIZEN
Adaptability Teamwork (system approach) Generalist-oriented Attention to details People oriented Information: open, shared Cross functional orientation Build on existing technology Cross functional organization Comprehensive feedback // YIS//062709//

Upcoming Japanese product perceptions

Technology Level

Preferred Process

Product

High Technology

Technology oriented innovation

Innovative product with Kaizen orientation

Technology oriented KAIZEN

Low Technology

People oriented KAIZEN

Kaizen oriented product

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CHAPTER III

KAIZEN by TOTAL QUALITY CONTROL (TQC)

Quality control deals with the Quality of people Speaks with data Quality first, not Profit first Manage the previous process ( Upstream) The next process is the customer Customer oriented TQC, not manufacturer oriented TQC TQC starts with training and ends with training Cross Functional Management to Facilitate Kaizen Follow PDCA cycles Standardize the results
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2
3 4 5 6 7 8 9 10

1. Quality assurance TQC

2. Cost reduction
3. Meeting production quota

4. Meeting delivery schedule

5. Safety

6. New-product development
7. Productivity improvement 8. Supplier management

TQC

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Manpower
Technique Method Time

Muda (Waste) Muri (Strain) Mura (Discrepancy)

Facilities Jigs and tools Materials Production volume Inventory Place Way of thinking

ACT

PLAN
Standardization Definitions of problem

CHECK

Confirmation of results

Analysis of problem

Implementation

Identificati on of causes Planning countermeasures

DO

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Man ( operator)
Does he follow standard? Is his work efficiency acceptable? Is he problem conscious? Is he responsible/accountable? Is he qualified?

Machine (facilities)
Does it meet production requirements? Does it meet process capabilities?

Material
Are there any mistakes in volume?

Operation Method
Are the work standards adequate?

Are there any mistakes in Is the work standard upgraded? grade?

Is the oiling (greasing) adequate?

Are there any mistakes in the brand name?

Are there impurities mixed in? Is the inventory level adequate?

Is it a safe method? Is it a method that ensures a good product? Is it an efficient method?

Is the inspecction adequate? is operation stopped often because of mechanical trouble?

Is he experienced? Is he assigned to the right job? Is he willing to improve?

Does it meet precision requirements?

Is there any waste in material?

is the sequence of work adequate?

Is the setup adequate? Are the temperature and humidity adequate? Are the lighting and ventilation adequate? Is there adequate contact with the previous and next processes? // YIS//062709//

Does it make any unusual noises? Is the handling adequate? Is the work in process abandoned?

Is the layout adequate?

Does he maintain good human relations?

Are there enough machines/facilities?

Is the layout adequate?

Is he healthy?

Is everything in good working order?

Is the quality standard adequate?

CHAPTER IV

KAIZEN the PRACTICE

Achieve maximum quality with maximum efficiency

Maintain minimum inventory

Eliminate hard work

Use tools & facilitates to maximize quality & efficiency & minimize effort

Maintain a questioning & open-minded attitude for constant improvement based on teamwork & cooperation

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Management Oriented KAIZEN

Tools Seven Statistical Tools New Seven Tools Professional skills
Managers & Professional Focus on system & Procedures Lasts for the duration of project As many as management chooses Line & Staff project team

Group Oriented KAIZEN

Seven Statistical Tools New Seven Tools
QC- circles group members Within the same workshop Requires 4-5 months to complete 2-3 per years Small-group activities QC circles Suggestion system

Individual Oriented KAIZEN

Common sense Seven Statistical Tools
Everybody Within ones own work area Anytime Many Suggestion system

Involves Target Cycle (Period) Achievements Supporting system

Implementation cost
Result Booster

Sometimes require small investment to implement the decision

New system and facility improvement Improvement in Managerial performance Gradual & visible improvement Marked upgrading of current status

Mostly inexpensive

Inexpensive

Improved work procedures Revision of standard Morale improvement Participation Learning experience Gradual & visible improvement

On-the-spot improvement Morale improvement KAIZEN awareness Self-development Gradual & visible // YIS//062709// improvement

Direction

Seiton

Seiri

Seiso

5s
Shitsuke

Seiketsu

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Waste of REJECTS

Waste in DESIGN

Waste in WIP

NINE WASTES !!

quality

cost

delivery

product

Waste in FIRST PHASE OF PRODUCTION

Method / system resources

manpower

facilities

money

Waste in MOTION

Waste in MANAGEMENT

Waste in MANPOWER

Waste in FACILITIES

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Waste in EXPENSES

Shortened lead time Reduced time spent on non-process work Reduced inventory

J I T

Better balance between different processes

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Problem clarification

Design

Product planning

Top management responsibility : Strategy & Planning

Marketing

QCS
Production & Purchasing

Production preparation

Administration responsibility: Provide support

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Time
100%

Involvement

50%

0% Idea Design Development Development Model Development Trial runs & customer appraisal Final product design Tools & machinery Process control Production

PRODUCT DEVELOPMENT PHASE AT IDEAL COMPANY

CHAPTER V

KAIZEN MANAGEMENT

Management & Labor ; Enemies or Allies?

Cooperation Working together to bake bigger pie

Confrontation fighting over how to divide the pie

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Manager's first job is to learn to communicate with his employees so both workers and the company can achieve their common goal

Union leader who cannot understand financial statement and analyze the company's performance will not be able to negotiate with management on such laborrelated subjects as technological innovation, personnel transfers, and scrapping facilities

MANAGEMENT & LABOR RELATION

Confrontation

Collective bargaining

Alleviation of frustrations

Formal & Organization oriented

Labormanagement consultation Small-group activities

Informal & Individual oriented

Cooperation

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Income potential Job allocation if labor is flexible

+
Job potential If management is not flexible

Calls for management initiatives

Job potential if management is flexible

Calls for labor initiatives Job allocation If labor is not flexible

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General statement of direction for change (qualitative ) Definition of top management statement (quantitative) Specific goals (quantitative) Specific actions (quantitative)

Top management

Division Management

Middle Management Supervisors

POLICY DEPLOYMENT

Goals
Long range policy

Governing Body
Board of directors meeting

Annual top management policy

Top management

Cross-functional policy

Top management cross functional committee

Departmental (functional) policy

Line management

CHAPTER VI

The KAIZEN APPROACH to PROBLEM SOLVING

When there is no problem , there is no potential for improvements

KAIZEN starts with a problem, more precisely the

recognition that a problem exists

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Seven Statistical tools

Pareto diagrams
Cause & Effect diagram Histograms Control charts Scatter diagram Graphs Check-sheets

New Seven tools

Relations diagram
Affinity diagram Tree diagram Matrix diagram Matrix data-analysis diagram PDPC (Process Decision Program Chart) Arrow Diagram
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Who
Who does it?

What
What to do?

Where
Where to do it?

When
When to do it?

Why
Why does he do it?

How
How to do it?

Who is doing it? What is being done?

Where is it done? Where should It be done?

When is it done?

Why do it?

How to do it?

Who should be doing it?

What should be done?

When should it be done?

Why do it there?

How should it be done? Can this method be used in other areas?

Who else can do What else can be Where else can What other time it? done? it be done? can it be done?

Why do it then?

Who else should What else should be do it? done?

Where else should it be done?

What other time should it be done?

Why do it that way?

Is there any other way to do it?

Who is doing 3Mus?

What 3-Mus are being done?

Where are 3Are there any 3Are there any time Mus being Mus in the way of 3-Mus ? done? thinking?

Are there any 3-MUs in the method?

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VELOCITY FOR COMPETITIVE ADVANTAGE

Standardization Process optimization Elimination of waste

Evolution in people and technique

Durable training
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CUTTING CHANGE OVER TIME

1. Form a team & allocate responsibilities 7. Set-up board for visualization & monitoring

6. Analysis & improvem ent

Seven Steps

2. Measure current state

3. Analysis & improvement

5. Set process with new scenario

4. Apply first improvement

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CHAPTER VI

CHANGING the CORPORATE CULTURE

The costumer : The ultimate Judge of quality The eye of the needle struggle to enter the market

1 2 3 4

Supplier relations

Changing Corporate culture : Challenge to the west We call some societies primitive because of their desire to remain in the same state and in unchanging standard of living as their gods or ancestors created them at the beginning of time

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BUY
(Outside contactors)

Establishing better criteria to measure optimum inventory levels

Developing additional supply sources that can ensure faster delivery

MAKE
(part time /contract employee)

Improving how orders are placed

Improving the quality of information provided to suppliers

Establishing better physical distribution system

Understanding the suppliers internal requirements better

Conventional Wisdom
Higher quality leads to higher costs

Japanese Revolutions
Higher quality leads to lower costs

Larger lots lead to lower costs

Smaller lots lead to lower costs

Workers do not need to be taken into account

A thinking worker is a productive worker // YIS//062709//

Constant effort to improve industrial relations

Emphasis on training & education of workers

Developing informal leaders among the workers

getting workers' acceptance and overcoming their resistance to change.

Formation of Small Group Activities such as QC circles

Support & recognition for workers KAIZEN effort

Creating a Cooperative atmosphere and corporate culture

Conscious effort for making the workplace a place where Workers can pursue life goals Bringing social life into the workshop as much as practical Training supervisor so that they can communicate better & create a more positive involvement with workers

Bringing discipline to the workshop

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KAIZEN PHILOSOPHY

Be it our working life, our social life, or our home life, deserves to be constantly improved

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