2. KAIZEN 3. KAIZEN-The Concept
-
- Our way of life need to be constantly improved
-
-
- Working life, social life, home life
4. KAIZEN-The Concept Masaki Imai 5. KAIZEN-The Concept 6.
KAIZEN INNOVATION KAIZEN-The Concept 7.
- Process Oriented Approach
-
- Leads to Improved Results
-
-
- Focus on the process improvement without loosing sight of the
expected results.
-
-
- Participation and Involvement
KAIZEN-The Concept 8. KAIZEN-The Practice On the spot
improvement Improved work procedures New System and Facility
improvement Results Inexpensive Mostly inexpensive Small investment
Implementation Cost Individual work area Group Work area Systems
and Process Target Everyone QC Circles Managers and Professionals
Involves Common Sense Seven QC Tools Seven QC Tools New Seven Tools
Seven QC Tools New Seven Tools Professional Skills Tools Individual
Group Management 9.
- Just In Time- Management Oriented Kaizen
-
- Exact number of required units brought to each successive stage
of production at the appropriate time
-
-
- Reduced time spent on non-process work
-
-
- Better balance between processes
KAIZEN-The Practice 10.
- Group Oriented Kaizen- SMALL GROUP ACTIVTIES
-
- Informal, voluntary small groups, organized within the
company
-
-
- Carry out specific improvement activities
-
-
- QC circles, Suggestion Groups, Workers group
-
- QC Circlesthe most famous
-
-
- Emphasis on problem solving in the work area
-
-
-
- Labor-Management relationship improved
KAIZEN-The Practice 11.
- Individual Oriented Kaizen- SUGGESTION SYSTEM
-
- Individual provides suggestion on how to improve his work
area.
-
- Helps the individual to be Kaizen conscious.
-
-
- Opportunity for management to help workers.
-
-
- An valuableopportunity for two way communication
-
- Suggestions normally covers:-
-
-
- Savings in energy, material and other resources
-
-
- Improvement in working environment
-
-
- Improvements in machines, processes, jigs and tools
-
-
- Improvements in customer services
KAIZEN-The Practice 12. KAIZEN- Implementation
- Seven Conditions for Successful Implementation of Kaizen
Strategy
-
- Top management commitment
-
- Top management commitment
-
- Top management commitment
-
- Setting up an organization dedicated to promote Kaizen
-
- Appointing the best available personnel to manage the Kaizen
process
-
- Conducting training and education
-
- Establishing a step-by-step process for Kaizen
introduction.
13. KAIZEN &INNOVATION 14. Time Figure 2.2 Ideal pattern
from innovation Figure 2.3 Actual pattern from innovation Time 15.
INNOVATION plus KAIZEN KAIZEN KAIZEN INNOVATION INNOVATION New
Standard New Standard 16. KAIZEN and INNOVATION Better suited in
fast growth economy Works well in slow growth economy 10. Advantage
Large investment but little effort to maintain Little investment
but great efforts to maintain 9. Practical Requirements Technology
People 8. Effort Orientation Scrap and Rebuild Maintenance and
Improvement 7. Mode Individual ideas and efforts Collective group
efforts, systems approach 6. Approach Selected champions Every-one
5. Involvement Abrupt and volatile Gradual and constant 4. Change
Intermittent and non-incremental Continuous and Incremental 3. Time
frame Big Steps Small Steps 2. Pace Short term and dramtic
Long-term and business as usual 1. Effect INNOVATION KAIZEN 17.
Another comparison of Innovation and KAIZEN Innovation KAIZEN
Creativity Individualism Specialist-oriented Attention to great
leaps Technology-oriented Information: closed, proprietary
Functional (specialist) orientation Seek new technology Line +
staff Limited feedback Adaptability Teamwork (systems approach)
Generalist-oriented Attention to details people-oriented
Information: open, shared Cross-functional orientation Build on
existing technology Cross-functional organization Comprehensive
feedback 18. 6 Sigma 19.
- Six Sigma Was Developed at Motorola in the 1980s As a Method to
Improve Process Quality.
- It Was First Used to Improve Manufacturing Process Capability
and Then Migrated to Business Processes Capability
- Companies That Have Deployed Six Sigma: Bank of America,
Motorola, GE, IBM, Kodak and Many More
- The Basic Premise Is, All Processes Have Variation. Variation
Is the Enemy.
About Six Sigma 20. Six Sigma Philosophy
- Know Whats Important to the Customer (CTQ)
- Center Around Target(Mean)
- Reduce Variation (Standard Deviation)
? GE Company Proprietary November 1998 21.
-
- A break through strategy to significantly improve customer
satisfaction and shareholder value by reducing variability in every
aspect of business .
-
- A statistical term signifying3.4defects per million
opportunities.
SIX SIGMA-Definitions 22. SIX SIGMA DEFINATIONS 6 3.4 99.9997% 5
320 99.98% 4 6 210 99.4% 3 66 800 93.3% 2 308 000 69.2% 1 690 000
30.9% Your Sigma is Your DPMO is. If your yield is 23. SIX
SIGMA-Definitions
- In brief,Six Sigmais a process control method to improve the
quality of products or services in a continuous manner.
- This method uses six standard deviations of a normal
distribution as the limits of customers acceptance of the systems
products.
- This method is applicable to manufacturing as well as service
industries.
- With six sigmas, only 3.4 defects per million are allowed, or
an acceptable level of 99.9997% is required
24. Six Sigma Performance Source: The Six Sigma Way by Peter
Pande and Others Less than 2 crashes 4100 crashes Out of every
500,000 computer restarts 1.8 seconds of dead air 1.68 hours of
dead airFor every week of TV broadcasting per channel 1 misdelivery
3,000 misdeliveries For every 300000 letters delivered With Six
Sigma Quality With 99 % Quality 25. Who is Implementing Six
Sigma
- At least 25% of the fortune 200 claim to have a serious six
sigma program -Michael Hammer.
- Financial - Bank of America, GE Capital, Electronics - Allied
Signal, Samsung, Sony
- Chemicals - Dupont, Dow Chemicals
- Manufacturing - GE Plastics, Johnson and Johnson, Motorola,
Nokia, Microsoft, Ford.
- Airline - Singapore, Lufthansa, Bombardier
- And hundreds of others in Americas, Europe, Sub Continent.
26. Six Sigma Results Six Sigma Savings as % of revenue vary
from1.2 to 4.5 % For $ 30 million/yr sales Savings potential $
360,000 to $ 1.35 million. Investment: salary of in house experts,
training, process redesign. Annual Savings Company *$1.5
billion(*since inception in 1998) JP Morgan Chase $600 million
Honeywell$500 million Johnson & Johnson $ 16 billion(*since
inception in 1980s) Motorola $2.0+ billion General Electric 27. Key
Concepts of Six Sigma
- At its core, Six Sigma revolves around a few key concepts.
-
- Critical to Quality:Attributes most important to the
customer
-
- Defect:Failing to deliver what the customer wants
-
- Process Capability:What your process can deliver
-
- Variation:What the customer sees and feels
-
- Stable Operations:Ensuring consistent, predictable processes to
improve what the customer sees and feels
-
- Design for Six Sigma:Designing to meet customer needs and
process capability
28. Dissecting Process Capability
- Premise of 6 Sources of variation can be:
Defects Process Capability Inadequate Design Margin Inadequate
Process Capability Unstable Parts & Materials Defects
Acceptable LSL USL 29. D efine C ontrol I mprove A nalyze M easure
D efine the problem and customer requirements. M easuredefect rates
and document the processin its current incarnation. A nalyzeprocess
data and determine the capability of the process. I mprovethe
process and remove defect causes. C ontrolprocess performance and
ensure that defects do not recur. Common sense doesnt mean commonly
done or when done, done well. Six Sigma Methodology 30. Six Sigma
Methodology Control Define Measure Analyze Improve
- Establish standards to maintain process;
- Design the controls,implement and monitor.
- Evaluate financial impact of the project
- Identify, evaluate and select projects for improvement
- Collect data on size of the selected problem,
- identify key customer requirements,
- Determine key product and process characteristic .
- Analyze data, establish and confirm the vital few determinants
of the performance.
- Develop ideas to remove root causes
- Design and carry out experiments,
Project Phases 31. Six Sigma Case Study Service Organisation
- M/s Alpha Inc. manages out bound cargo from a distribution
centre to different stores.
- Deliveries made on trucks - owned and hired.
- Customers dissatisfied at delivery schedules.
- Leadership decision to deploy Six Sigma;
- Team of 1 Black Belt and 3 Green Beltsformed
- Sponsor of the project Distribution Manager
32. Define - Critical to Quality (CTQ)
- Focus on customers generating annual revenue of USD
400,000/-.
Current process sigma level - 2.43 or 175889 DPMO Delivery
within +/- 1 hour of scheduled delivery time Level 3 CTQOn time
delivery to schedule Level 2 CTQTimely delivery Level 1 CTQImproved
delivery performance Customer needs 33. Define - Goal Statement
- Reduce number of delayed deliveries by 50 % by 31st December Y
2002 to better meet customer requirement of timely delivery defined
as within +/- 1 hour of scheduled delivery.
34. Define -Performance Standards 1 opportunity for a defect per
scheduled delivery of freight. No. of defect opportunities per unit
Delivery earlier or later than 1 hour. Defect Scheduled time or
zero minutes deviation Target LSL = -60 minutes USL= +60 minutes
Specification limits Process starts when an order is receivedEnds
when goods are received & signed for at customers desk. Process
measurement Deviation from scheduled delivery time in minutes.
Project Y measure Timely delivery Output characteristic A scheduled
delivery of freight Output unit 35. Define - SIPOC Diagram
- Detailed process maps drawn
Store Manager C ustomer Received freight with Documents O utput
Receive order Plan delivery Dispatch Driver with goods Deliver
goods to stores Receive delivery P rocess Steps (high level) Stores
Order I nput Stores Manager S upplier 36. Measure and Analyze
- Driver and Distance identified as key factors influencing
delivery performance.
- Driver selected for focus.
- Potential root causes as to why Driver influenced the
time:
37.
- Experiments designed and conducted using truck type and tyre
size.
-
- Larger tyres took longer time at certain routes where area was
cramped and time lost in maneuvering.
-
- High incidence of tyre failures since tight turns led to stress
on tyres thus increasing number of flat tyres.
- Team modified planning of dispatch process by routing smaller
trucks at more restrictive areas.
Improve 38.
- Process sigma level up from 2.43 or 175889 DPMO to3.94 or
7353DPMO.
- Performance still fell short of best in class4.32 or 2400
DPMO.
- Improvement led to significant customer satisfaction.
- Process continually monitored and data on new cycle times, tyre
failure collected as per defined methods and frequency, analysed
and monitored.
- Customer satisfaction measured and monitored.
Control 39. Key Lessons Learnt
-
- Difficulty in identifying the right project anddefining the
scope;
-
- Difficulty in applying statistical parameters to Voice of the
Customers;
-
- Trouble with setting the right goals;
-
- Inefficient data gathering;
-
- Lack of speed in execution;
40. Key Lessons Learnt
-
- Challenge of identifying best practices
-
- Overuse of statistical tools/ under use of practical
knowledge
-
- Challenge of developing hypotheses
-
- Challenge of developing ideas to remove root causes
-
- Difficulty of implementing solutions
-
- Lack of follow up by Managers/ Process Owners
-
- Lack of continuous Voice of the Customer feedback
-
- Failure to institutionalize continuous improvement.
41. Key Lessons Learnt
- Define ranked most important step but gets the lowest resource
allocation
- Project scoping and its definition is critical to its success/
failure;
- Measure is considered most difficult step and also gets the
highest resources
- Source: Greenwich Associates Study Y 2002
42.
- Breakthrough improvements
- Structured & disciplined problem solving methodology using
scientific tools and techniques
- Involvement of leadership is mandatory.
- Action learning (25% class room, 75 % application)
- Creating a dedicated organisation for problem solving (85/50
Rule).
What Makes Six Sigma Different? 43. Benefits of Six Sigma
- Generates sustained success
- Sets performance goal for everyone
- Enhances value for customers;
- Accelerates rate of improvement;
- Promotes learning across boundaries;
- Executes strategic change
44. 6 Sigma vs Kaizen 45. Six Sigma & Kaizen- The Difference
RELIES UPON GROUP DYNAMICS FIXED PLAN OF IMPLEMENTATION Difficult
and High Cost Simpler and Low cost Implementation Improve Existing
System Statistical Method Improvement Framework-DMAIC Improve
Existing System Human Based Approach YES YES Continuous Improvement
YES YES Quality Improvement SIX SIGMA KAIZEN 46.
-
- Japanese OriginWestern Origin
-
- CultureMethodology (or Culture)
-
- Continuous ImprovementImmediate Perfection
-
- Mistakes as Possibility for ImprovementReducing Variation
andDefects
-
- Long-term ResultsShort-term ResultsPossible
-
- Every Possible Improvement Prioritising Projects
-
- Providing QualityEnsuring Profitability
-
- Participation of Every Single EmployeeCreation of
ProjectTeams
47. Thank You