Total Quality Management

Presentation (Internal-II)

Submitted to: Submitted by:

Dr. Piyush Kendurkar Jayant Nannore

MBA(BF)

Kaizen (改善 )

“Continuous Improvement”

Introduction

• ‘Kaizen’ literally means improvement in Japanese.

• From business management point of view it is defined as the measures for implementing continuous improvement.

• It is a method that strives toward perfection by eliminating waste (MUDA) in the work place (GEMBA).

Masaaki Imai

• Known as the “Lean Guru” and the father of Continuous Improvement (CI)

• Pioneer and leader in spreading the Kaizen philosophy all over the world

• Authored the book ’Kaizen: The Key to Japan’s Competitive Success’

• Now companies around the world use kaizen for greater productivity, speed, quality and profits with minimal cost, time and effort, to get results and to become recognized industry leaders.

The Origin of Kaizen

• The foundation of Kaizen was laid in Japan after the Second World War, when the country was attempting to rebuild infrastructure and rethink many systems.

• Several American experts on workplace improvement including W. Edwards Deming and Joseph Juran came to Japan to lecture and teach.

• Using information from these individuals regarding the TWI (Training Within Industry) programs , the concept of Kaizen began to be formed and it took off in the 1950s.

• Process Oriented Approach

– Leads to Improved Results

• Focus on the process improvement without loosing sight of the expected results.

• People Oriented Approach

– Focus on ….

• Discipline

• Time Management

• Skill Development

• Participation and Involvement

• Morale

• Communication

KAIZEN-The Concept

Kaizen Umbrella

Masaki Imai

Kaizen : Key principles• The first is a heavy reliance on teamwork, in which

everyone's opinion is valued and considered.

• Workers also have strong personal discipline, and morale in factories must improve under kaizen.

• Workers should also be confident about offering suggestions for improvement, even when a system appears to be functioning adequately

• Kaizen recognizes that there is always room for improvement

• Finally, the system uses quality circles, worker groups who meet and work together to solve problems and come up with innovative changes.

KAIZEN and INNOVATIONKAIZEN INNOVATION

1. Effect Long-term and business as usual

Short term and dramtic

2. Pace Small Steps Big Steps

3. Time frame Continuous and Incremental Intermittent and non-incremental

4. Change Gradual and constant Abrupt and volatile

5. Involvement Every-one Selected champions

6. Approach Collective group efforts, systems approach

Individual ideas and efforts

7. Mode Maintenance and Improvement Scrap and Rebuild

8. Effort Orientation People Technology

9. Practical Requirements Little investment but great efforts to maintain

Large investment but little effort to maintain

10. Advantage Works well in slow growth economy

Better suited in fast growth economy

INNOVATION plus KAIZEN

KAIZEN

KAIZEN

INNOVATION

INNOVATION

New Standard

New Standard

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

The Approach

• The Kaizen Approach is composed of 3 segments:

A. Pre-event Prep: Identify and plan narrowly scoped events

• Reducing defects in order entry

• Implementing marketing metrics

• Performing customer surveys to get VoC

A. Kaizen Event: measure, analyze, implement, and control improvements in one week

B. Follow-up Actions: remaining action items must be completed within four weeks after event

Kaizen Event• A few days, highly structured and coached intense

attack on waste in a process or work area by a

small group

When to use Kaizen• Waste sources have been identified (Low-hanging

fruits)

• The scope of a problem is clearly defined

• Results are immediate and risk is minimal

15Kaizen Training

Steps on Team Development

FormingForming This is the development of a multi-functional team with a variation of backgrounds and knowledge

FormingForming Stage where the group agrees how to operate as a team

StormingStorming Open & honest discussion, also brainstorming

PerformingPerforming Agreement on solutions & taking action

AdjourningAdjourning Closing on the continues improvement process after 30 days

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Management Oriented KAIZEN

Group Oriented KAIZEN Individual Oriented KAIZEN

Tools Seven Statistical ToolsNew Seven ToolsProfessional skills

Seven Statistical ToolsNew Seven Tools

Common senseSeven Statistical Tools

Involves Managers & Professional QC- circles group members Everybody

Target Focus on system & Procedures Within the same workshop Within one’s own work area

Cycle (Period) Lasts for the duration of project Requires 4-5 months to complete

Anytime

Achievements As many as management chooses 2-3 per years Many

Supporting system

Line & Staff project team Small-group activitiesQC circlesSuggestion system

Suggestion system

Implementation cost

Sometimes require small investment to implement the decision

Mostly inexpensive Inexpensive

Result New system and facility improvement

Improved work proceduresRevision of standard

On-the-spot improvement

Booster Improvement in Managerial performance

Morale improvementParticipationLearning experience

Morale improvementKAIZEN awarenessSelf-development

Direction Gradual & visible improvementMarked upgrading of current status

Gradual & visible improvement Gradual & visible improvement

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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?

Team Rules

• Be open to change

• Maintain a positive attitude

• Never leave disagreements unspoken

• We’re not interested in assigning blame – only in creating solutions!

• Practice mutual respect

• Treat others as you want to treated

• One person, one vote – position doesn’t matter

• The only stupid questions are the ones not asked

• Have fun!

• Understand the process, and…JUST DO IT!

Kaizen in ToyotaThe Toyota Production System is known for it’s use of kaizen.

• After World War II, Taiichi Ohno was charged with setting up machine shops for Toyota. He studied the Ford production systems. He analyzed the various productive measures and discrepancies in the system.

• Based on the analysis, he outlined several production strategies for Toyota. These production strategies later became benchmarks for production practices across the world.

• Toyota thus became one of the first companies in the world to adopt practices such as Kaizen. Analysts however feel that Kaizen kept TPS, JIT, Kanban and other practices working smoothly as an interlinked strategic operational plan.

Toyota’s use of Kaizen to solve labor crisis

• In the early 1990s, Toyota was facing acute labor shortage

• Toyota’s initial management focus was on increasing production efficiency through higher production levels with less number of workers. This resulted in increased stress and worker exodus

• The global upsurge in car demand during 1987-1991 led to drastic increase in demand for labors

• Toyota realized that it would have to rely on Kaizen for modifying its existing assembly lines to attract workers.

• The company decided to change its working conditions to accommodate workers of more diverse nature

• The management decided to allow plants to set their own annual production efficiency targets. Production efficiency measurement was based on worker’s production time rather than on best production time

Why Toyota stands Out than Big Three

Those company can execute better than competitors at the micro level (process improvement) will be the winner.

Kaizen to Toyota is the elimination of three basic things like:

Muri (Overburden on employees)Mura(Unevenness in production)Muda (Waste)

PIT FALLS IN KAIZEN

• Resistance to change

• Lack of proper procedure to implement

• Too much suggestion may lead to confusion and time wastage

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Key Benefits of Kaizen• 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

• Higher operational efficiency – – Reduces wastage, like inventory waste,

time waste, workers motion – Improves space utilization and product

quality• A Learning Experience – Every member of a

Kaizen Team will walk away from the event learning something new. – Encourages big picture thinking– Results in higher employee morale and job

satisfaction, and lower turn-over.

Kaizen can be applied to real life also…

Consider the case of a student’s bag. The items can be classified into

• Notes and assignments• Stationary (pens, notepads etc.)• Other items like calculators, pen drive etc.

Regular checking of the stationary items ensures that the notemaking is not affected due to lack of stationary.

Keeping notes and assignments organized enables faster access to them.

Overall checking of bag at regular intervals ensures that no necessary items are missing.

Conclusion• “Kaizen” or “continuous improvement” should be a

part of our everyday life.

• The concept is simple but if properly applied can lead to significant efficiency improvements for organizations.

• Kaizen and its associated concepts like PDCA, Kanban and Quality Circles have been critical to the success of large organizations like Toyota, Canon and Nippon.

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

deserves to be constantly improved”

KAIZEN PHILOSOPHY

KAIZEN HELPS YOU TO…

SEE THE WASTE.TURN PROBLEMS INTO PROFIT.

CONSTANTLY CHANGE FOR THE BETTER.