KAIZENThe Key to Japan’s Competitive Success

By

VIVEK SHAH 11030241180

KINJAL GUPTA 11030241191

PALAK DABAS 11030241190 VINIT HANKARE 11030241179

VICTORY ABRAHAM 11030241186

TABLE OF CONTENTS

5. KAIZEN, The Practice

4. The KAIZEN Approach to Problem Solving

3. KAIZEN Management

2. Improvement East and West

6. Changing the Corporate Culture

1. KAIZEN, The Concept

KAIZENThe Concept

CONTINUAL IMPROVEMENT

RECTIFICATION

INNOVATION DAY-TO-DAY

FURTHER DEFINITION

The story of the Kaizen miracle started in the 1930s. Sakichi Toyoda, founder of Toyota, which manufactured automatic looms at the time

In 1950 Toyota implemented quality circles leading to the development of Toyota’s unique “Toyota Production System”. 

These continual small improvements (Kaizen) add up to major benefits. They result, for example, in: faster delivery, lower costs, and greater customer satisfaction.

In 1986 Masaaki Imai introduced to the Western world the Japanese term Kaizen and made it famous through his book, Kaizen: The Key to

Japan's Competitive Success.

HISTORY

• C

ustomer orientation

• TQ

C

• R

obotics

• Q

C circles

• S

uggestion system

• A

utomation

• D

iscipline in the

workplace

• TP

M

• K

amban

• Q

uality improvem

ent

• Just in Tim

e

• Zero defects

• S

mall-group activities

• C

ooperative labor –

managem

ent relations

• P

roductivity improvem

ent

• N

ew-product developm

entKaiZe

N

Three Award in Sumo Tournament ;

- An outstanding performance award- A skill award- A fighting spirit award

Focus more on processRather than result !!!

Improvement East & West

TRADITIONAL METHOD VS KAIZEN

JAPANWESTERN

INNOVATION

KAIZEN

Science Technology Design Production Market

Innovation KAIZEN

Continuous Improvement

Breakthrough

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KAIZEN INNOVATION

Long termUn-dramatic

EffectShort term Dramatic

Small steps Pace Big steps

Continuous & incrementalTimeframe

Intermittent &non incremental

Gradual & consistent Change Abrupt & volatile

Everybody Involvement “Champion”

Collectivism, group efforts, systems

approachApproach Rugged individualism,

individual ideas & efforts

1

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KAIZEN INNOVATION

Maintenance & Improvement

ModeScrap

& Rebuild

Conventional know-how & state of the art Spark Technological breakthroughs,

new inventions, new theories

Little investment Great effort to maintain

Practical Requirements

Large investment Little effort to maintain

PeopleEffort

orientationTechnology

Process & efforts for better results

Evaluation criteria

Results for profits

Slow growth economyEconomic condition

Fast growth economy

2

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Innovation

Maintenance

Maintenance

Standard

Standard

Actual

Actual

Time

Innovation Standard

Standard

KAIZENActual

ActualKAIZEN

Time

PATTERN

Innovation

Innovation + Kaizen

KAIZEN VS SIX SIGMA

Widely applicable – Can be used in both manufacturing and non-manufacturing environments

Highly effective & results oriented. Kaizen events will generate quick results, Measurable results, Establish the baseline, and measure the change!!!

A Learning Experience – Every member of a Kaizen Team will walk away from the event learning something new! !

Team based & cross functional – Team members can be from various functions of the business. Top management participation is encouraged.

KAIZEN FEATURES

KAIZEN MANAGEMENT

Management & Labor ; Enemies or Allies?

Confrontation fighting over how to divide the pie

Cooperation Working together to bake bigger pie

JOBS FUNCTION PERCEPTIONS

Innovation

KAIZEN

MaintenanceInnovatio

n

Maintenance

Top management

Middle management

Supervisors

Workers

Japanese perceptions Western perceptions

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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

Use Kaizen in functional rules

Formulate plans for Kaizen and provide

guidance for workers

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

Workers

Engage in Kaizen through the

suggestion system and small group

activities

Practice discipline in the workshop

Engage in continuous self-development to become better

problem solvers

Enhance skills and job performance

expertise with cross education

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 labor-related subjects as technological innovation, personnel transfers, and scrapping facilities

The KAIZEN APPROACHto PROBLEM SOLVING

KAIZEN starts with a problem, more precisely the recognition that a problem exists

When there is no problem , there is no

potential for improvements

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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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VELOCITY FOR COMPETITIVE ADVANTAGE

Standardization

Process optimization

Elimination of waste

Evolution in people and technique

Durable training

KAIZEN the PRACTICE

5. Safety

6. New-product development

7. Productivity improvement

8. Supplier management

4. Meeting delivery schedule

3. Meeting production quota

1. Quality assurance

2. Cost reduction

TQC

TQC

Definitions of problem

Analysis of problem

Identification of

causes

Planning counter-

measures

Implemen-tation

Confirmation of results

Standardi-zation

PLAN

DO

CHECK

ACT

5s

2

5

3

4

1Seiri (Straighten up)

Seiton (Set in order)

Seiso (Shine)

Shitsuke (Sustain)

Seiketsu (Standardize)

Who What Where When Why How

Who does it? What to do? Where to do it? When to do it?Why does he do

it?How to do it?

Who is doing it? What is being done?Where is it

done?When is it done? Why do it? How to do it?

Who should be doing it?

What should be done?

Where should It be done?

When should it be done?

Why do it there?How should it be

done?

Who else can do it?

What else can be done?

Where else can it be done?

What other time can it be done?

Why do it then?Can this method be used in other

areas?

Who else should do it?

What else should be 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 3-Mus?

What 3-Mus are being done?

Where are 3-Mus being

done?

Are there any time 3-Mus ?

Are there any 3-Mus in the way of

thinking?

Are there any 3-MUs in the

method?

5Ws + 1 H

SEVEN WASTES !!

JIT

Shortened lead time

Reduced time spent on non-process work

Reduced inventory

Better balance between different processes

Problem clarification

CHANGING the CORPORATE CULTURE

Canon of Japan implemented in 1975 to excel over international competition and expand its operations on a global scale in 6 years.

Canon put in place a special matrix management system with numerous small group activities.

The purpose was to eliminate wastes, revitalize the workforce, and improve continuously in all business processes.

Techniques like Canon Production System, Quality Assurance, Production Assurance, and Personnel Training were introduced. Canon achieved an astonishing 3% per month productivity increase.

CANON CASE

Fidelity Investments offers various financial services.

Chairman and CEO, Johnson, introduced Kaizen in Fidelity by setting up a separate group to promote Kaizen.

Each division was defined as a separate company or business unit.

Employees were motivated to the maximum, leadership qualities were encouraged, and progress on goals was evaluated on monthly and quarterly basis for adjustments and refinements.

Customer satisfaction and profitability improved in long-term.

FIDELITY INVESTMENT

Gold Seal Engineering Products is an India-based automotive spares manufacturer, with exports to several countries.

The 5S principles of Kaizen were implemented to cut down the production set-up time by 33%.

In 6 months, production space increased 45%, lead time was down by 25%, scrap was reduced by 75%, machine down time dropped by 60%, and response time got reduced by 42%.

Gold Seal Engineering

Resistance to change

Lack of proper procedure to implement

Too much suggestion may lead to confusion and time wastage

PITFALLS IN KAIZEN

Kaizen Reduces Waste- like inventory waste, time waste, workers motion

Kaizen Improves space utilization, product quality

Results in higher employee moral and job satisfaction, and lower turn-over.

BENEFITS OF KAIZEN

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“Be it our working life, our social life, or our home life, deserves to

be constantly improved”

KAIZEN PHILOSOPHY