5/17/2013

Human Resource Management, 2nd Sem. | Authored by : Shad Rahmani

JAMIA MILLIA ISLAMIA KAIZEN

2

KAIZEN

A Report on Kaizen

Prepared for 1st Semester submission

In

Human Resource Management course

Prepared By:

Shad Rahmani

Human Resource management

2nd Semester (1st year)

Department of Social work

Jamia Millia Islamia

Submitted to:

Prof. Sigamani P

3

KAIZEN

1

Quality is both thinking why something is done and why it is done

that way; then thinking differently to improve

(Taiichi Ohno), Chairman of Toyota)2

1 leanimprovement.blogspot.com

2 Sharma.d.d(2000) Total quality management, Delhi sultanchand &sons

4

1:-Introduction

We all are n familiar with the word KAIZEN after the visit to the

different production plants in our scheduled organisation visits.

First Thing which come in mind after seeing this word that it is a

foreign terminology, and as we all know KAIZEN is a Japanese term

meaning improvement or rather continuous improvement.

Essence of kaizen is very straight and simple. It speaks of

CONTINUOUS IMPROVEMENT. It is not just a business concept;

it is a philosophy of way of life, our professional life, social life and

personal life.

Through this assignment we would try to find the Origin, definition,

concept and framework of Kaizen.

We would further delve into conceptual understanding of topic, its

framework, different processes and implementation of the concept.

We would then analyse topic critically through case studies and try to

understand results achieved by application of kaizen.

5

2:-Theoretical background(s)

2.1:- Origin

Origin of Kaizen could be traced back to post world war

(World War II) scenario in Japanese economy. At that time most of

the Japanese companies were facing survival challenges and have to

start from the basic. At that time Experts such as W.E Deming

and M. Juran come into the leading front and introduced various

tools that helped origin of this concept around 1950s and early 1960s.

Kaizen was first implemented by Toyota in 1950 through quality

circles which lead to the development of a concept called Toyota

Production System

It was a system of continuous improvement in quality, technology,

processes, productivity, safety and leadership. It resulted in faster

delivery, lower costs, and greater customer satisfaction.

1986- Masaki Imai introduced this concept to the western world

through his book KAIZEN: The key to Japans competitive

success.

With thirty years of experience in Kaizen, Japanese companies has

flourished and set a benchmark for others.

6

2.2:-Definitions

In term of a common person we could always define kaizen as a

concept which seeks of continuous improvement. It is a very simple

and elegant definition which gives idea about what you are striving

for.

It is really amazing that a concept which changes an organisation is so

easy to describe in one sentence , In fact we could understand from

this that kaizen itself speaks of simplifying things and works toward

removal of complexity, thereby increasing productivity, performance

and profit.

Furthermore various researchers have explained Kaizen in various

different ways. We would go through them and try to understand the

concept.

1-Neese and Kong (2007)3 described kaizen as the process of

orderly continuous improvement

2- Kaizens are characterized as short bursts of intense activity driven

toward resolving a specific problem or achieving a specific company

goal in a short period of time (Chapman, 2006, p.27)4

3-Womack and Jones (1996)5 refers to Kaizen as Lean Thinking and

lay out a systematic approach to help organizations systematically

reduce waste.

4-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 time frame (Letens, Farris,

and Van Aken, 2006)6

3 Mishra,Gupta anshul2010,kaizen culture: enabling organizational change management,GJEIS,vol-2,p-4

4 Mishra,Gupta anshul2010,kaizen culture: enabling organizational change management,GJEIS,vol-2,p-4

5 Lee Samson et al,1999-2000,kaizen:an essential tool for inclusion in industrial technology criteria,JIT,vol-16,p-2

6 Farris.A.Jennifer et al,2008,learning from less successful kaizen events-a case study,EMJ,vol-20,p-1

7

2.3:-Concept

Kaizen as we all have seen from definitions speaks of four main

elements

Hence kaizen is a process that sees improvement in productivity as a

gradual and methodical process.

Kaizen extract profits and productivity by eliminating waste from

overall processes

Hence we could safely assume that Kaizen is an improvement which

is

Kaizen is not expensive. The core principal of kaizen is to make small

and immediate improvements in process and standard of workplace. It

uses common sense tools checklist and techniques that do not cost

money. After a period of time all these processes would add up to-

Goal Oriented

Continuous Change Elimination

Of waste

Process

Significant

Stratigically important

Duration

Speedily

Sustainaible

Methods

Scientific data

Utilises Best Tools

Elimination Of Waste processe

Increased safety Increased Efficiency

Increased Productivity

8

2.4- Main Features

Till now we have learnt that kaizen is a goal oriented process which

emphasise on goal orientation and increasing profit by eliminating

waste processes. To implement kaizen we only need simple

conventional Techniques such as seven tools of quality control.

Here to understand main features of kaizen we would try to compare

it with western concept of innovation to get clarity.

S.no Features Kaizen Innovations

1 Effect Long term Short term

2 Pace Small Steps Big Steps

3 Timeframe Continuous Intermittent

4 Change Gradual and

Constant

Abrupt and Volatile

5 Involvement Everybody Select few

champions

6 Approach Collectivism, Group

Efforts

Individualism

7 Mode Maintenance and

Improvement

Scrap and Rebuild

8 Practical

Requirement

Little Investment

,Little effort

Large Investment,

Little effort

9 Effort Orientation People Technology

10 Evaluation Criteria Process and efforts

for better results

Results for profits

11 Advantage Works well in slow

growth economy

Better suited to fast

growth economy 7

7 Sharma.d.d(2000) Total quality management, Delhi sultanchand &sons

9

2.5-Framework

Kaizen work through its five fundamental basic principles

Which are-

Steps in Kaizen

8

8 http://www.wcmfg.com

Suggestion/feedback

QualityCircles

Improved Morale Self confidence Participation

Personal Discipline Work Culture Commitment

Team Work Group Effort Team Building

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2.5:-Framework (contd.)

We could understand the cycle of Kaizen through PDCA cycle.

It was introduced by Deaming.It is also called Deaming Wheel or

PDCA cycle and is one of the crucial quality Control tools for

assuring continuous improvement

9

1-Plan and Design-PLAN Collection of Data, identification Of

Problem, Planning for Improvement

2-Implement-DoImpementation of Pilot Project

3-Evaluate-CheckObservation and Analysis of Procedures and

Results

4-Assess/Reassess-Action Assessing results and then redeployment

of the Improved Plan .From this stage cycle starts again.

9 http://www.kaizentek.com

11

3:-Conceptual Understanding

In this section now we will try to understand, what are different

methods of implementation of Kaizen in an organisation and how

different levels in an organisation interact and carry forward this

Process.

3.1:-Kaizen Umbrella

In practice all the quality control methods such as TQC, QC,

Zero Defect, JIT, Kanban etc come under one word i.e. Kaizen.

Hence by philosophy all the Japanese quality improvement methods

can be covered under concept of Kaizen.

KAIZEN

TQC

Quality Circles

SGAs

ZD

Suggestion System

Kanban

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3.2:-Kaizen Strategy

1-Maintaining and improving working standards through small,

gradual improvements

2- Delineate responsibility for maintaining standards to workers, with

role of management being the improvement of standards

3- Produce a system approach and problem-solving tools that can help

in realising the goals

4-There should be everyday improvement being made somewhere in

the company

5- Maintaining quality should be highest priority; however this quality

maintenance should not be limited to finished products. It should run

through all activity such as design, production, management etc.

6- Kaizen works for problem solving and for that gathering relevant

data is very important

7- Kaizen is process oriented rather than result oriented. In kaizen

managers have to focus on Process and result should be process

oriented.

8- Elimination of waste and MUDA and realizing goals.

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3.3-Kaizen and Management

In Kaizen management has two functions as in following chart-

Management must first establish policies, rules, directives and

procedures for everyone and ensure that everyone follows it.

Top management

Middle

Supervisors

Workers

(Japanese perceptions of Job Functions)

Top Management

Middle

Supervisor

Worker

(Management functions in KAIZEN)

Maintainance

Maintaining current technological and

operating standards

Maintaining Managerial p[rocesses

Improvement

Improving current standards

Improvement of Work practices

Improvement

Maintenance

Innovation

Kaizen

Maintenance

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3.4:-Kaizen Implementation at Different Levels

Top

Management

Middle

Management

and Staff

Supervisors Workers

Having a

Determination to

introduce

KAIZEN as a

corporate strategy.

Deploy and

implement

KAIZEN goals as

directed by top

management.

Uses KAIZEN in

functional roles.

Engaging in

KAIZEN through

the suggestion

system and SGAs

Providing Support

and Direction for

KAIZEN by

allocating

resources.

Using KAIZEN in

functional

capabilities.

Formulating plans

for KAIZEN and

provides guidance

to workers.

Practicing

discipline in the

workshop.

Framing Policy

for KAIZEN and

Goals.

Establish,

maintain and

upgrade

standards.

Improving

communication

with workers and

sustaining high

morals.

Engaging in

continuous self

development to

become better

problem solver.

Deployment of

Policies and

audits to achieve

environment of

KAIZEN.

Organising

Training

programmes to

make employees

KAIZEN

conscious.

Introducing

discipline in the

workshop.

Enhancing skills

and job-

performance,

expertise with

cross-education.

Building system,

procedures and

structures

conducive to

Kaizen.

Help employees

develop kills and

tools for problem

solving.

Providing

Suggestions for

KAIZEN.

10

10

Charantimath Poornima,(2003) total quality managementDelhi,Pearson education

15

3.5-Kaizen Practice

Kaizen process can be divided into three segments depending upon

complexity and level.

1-Management oriented-Concentrate on logistic and strategic issues

and provides momentum to keep up progress and morale

2-Group oriented kaizen-it is a permanent approach and is represented

by QC circles and SGAs that uses various statistical tools for problem

solving. It calls for full PDCA cycle and identifying problems and

causes.

3-Individual oriented Kaizen-It is achieved in form of suggestion

system

S.No Aspects Management

oriented

Group

Oriented

Individual

oriented

1 Involves Managers QC Circle Everybody

2 Target System and

Procedures

Same

Workshop

Work area

3 Cycle Project Four to Five

Months

Anytime

4 Implement

cost

Small

Investment

Inexpensive Inexpensive

5 Result New system

and facility

improvement

Improvement

and revision

On the spot

improvement

6 Booster Improvement

in

managerial

performance

Morale

Participation

Morale

Self

Improvement

7 Direction Gradual and

visual

improvement

Gradual and

visible

improvement

Gradual and

visible

improvement

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3.6-Kaizen in action

In Japanese philosophy there are three components that increases

waste and hamper the processes. Those are

1-MUDAWaste

2-MURIStrain

3-MURADiscrepancy

Every activity comprises of-

The Non value adding part is made up of MUDA, MURI and MURA.

When we reduce non value adding components, efficiency increases

and expenditures decreases.

A) List of MUDAS

1-Muda of over-production

2-Muda of repair/rejects

3-Muda of Inventory

4-Muda of motion

5-Muda of method

6-Muda of Time

7-Muda of materials

Value Adding

Non Value

Adding Activity

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B) 5S Framework for quality improvement

C) Advantage of 5S

Less spending on replacing lost or damaged items Less stress Greater self-esteem More space Greater efficiency in achieving goals Greater readiness for new tasks Fewer hazards

Seiri

Sorting

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 as per requirements and keeping them in approachable places. Everything else is stored or discarded.

Seiton

Setting in order

There should be a place for everything and everything should be in its place. The place for each item should be clearly labeled or demarcated. Items should be arranged in a manner that promotes efficient work flow. 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

Seiso

Systemic Cleaning

Keep the workplace 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. A key point is that maintaining cleanliness should be part of the daily work

Seiketsu

Standardizing

Work practices should be consistent and standardized. All work stations should be identical. All employees should be able to work in any station doing the same job 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.

Shitsuke

Sustain

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.ain

18

D) Kaizen in Action (Graphical)

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4:-CASE STUDIES

4.1-Case study-111

Title-Shortening customers telephone waiting time.

This case study is in reference to a bank where KAIZEN (QC)

program was implemented to reduce the customers waiting time on

telephone.

1-Companys Profile:-

The organisation at which this case study was taken place was a main

office of a large bank. An average of 500 customers called this office

every day. The theme of the companys telephone reception office

slogan Dont make customers wait, and avoid needless switching

from extension to extension

2-Problem/Situation:-

In a survey at the company it was found that callers tend to become

irritated if the phone rang more than five times before it was answered

and often would not call the company again. In contrast a prompt

answer after just two rings reassured them and made them feel more

comfortable.

3-Analysis:-

1-Discussion/Planning-First staff discussed why the present method

of answering calls made callers wait. They found following situations

i) Operator receives the call but due to lack of experience, does not

know where to connect the call

11

Masaaki imai 1984,the key to japans competitive success,Singapore,macgraw hill

20

ii) The receiver cannot answer the call quickly, perhaps because s/he

is unavailable or busy and nobody is there to take the call.

In such situation operator have to transfer call to another extension

causing delay

2-Cause and Effect-After arriving at problem participating members

conducted a survey regarding the callers who waited for more than

five rings. Members itemized factors at brainstorming session and

arranged them according to cause and effect.

3-Setting the target- after intense and productive session team

members decided to set a goal of reducing waiting callers to zero

4-Implementation:-

1-Taking lunches on three different shifts, leaving at least two

operators at the job all the time

2- Asking all employees to leave messages when leaving their desks.

Due to this operator were saved of transferring calls to desk where no

one is present. It was explained at regular meetings and posters were

placed all around.

3- Compiling a directory listing the personnel and their respective

jobs. It was to help operators to locate personnels easily.

5-Results:-

Although the waiting calls could not be reduced to zero, all items

presented showed a marked improvement.

Total number of delays incidents dropped from 351 to 59.

Daily average dropped from 29.2 to 4.8.

21

4.2-Case Study-212

Title-Case study at a manufacturing unit Company A

This case study is in reference to a manufacturing unit in field of

concrete reinforcement where KAIZEN techniques were applied to

increase the productivity and efficiency

1-Companys Profile:-

This case study was undertaken at a Company A at Iowa which

deals into the field of concrete reinforcement.

2-Problems/Situation faced:-

It was beginning at this plant and company attempted to invent a

structural reinforcement for concrete that carries all the strength of

steel while eliminating the problems associated with its weak

corrosive and thermal characteristics

So the situation/objective was to-

a) To develop a new product to match already established product

b) Removal of weakness in the product

c) To allow the product to reach more customers

3-Analysis/Implementation:-

Step-1.Forming the team and gather the information-

Datas related to engineering and technical aspects were collected.

Information regarding market positions on the product is gathered.

12

Lee Samson et al,1999-2000,kaizen:an essential tool for inclusion in industrial technology criteria, Journal of industrial technology,vol-16,P3-6

22

Step-2.Analysis of the process used by company A

Current method of manufacturing/processing was studied in detail.

What kind of products are manufactured, how much time is consumed

in the process, what kind of waste processes are generated are all

taken into account.

Step-3.Deciding the goal of the team

After gathering the detailed information about current process, Kaizen

team identified the goal. In this case, the team decided to improve the

method of storing the rods due to the excessive waste generation by

current storing method

Step-4.Providing the alternative methods

Following Kaizen steps, team developed seven technical ideas to

improve storage of the rods. One of the suggestions was to continue

with the current method but that was not a waste eliminating process.

Step-5.Evaluate and select best solution

The best method was an alternative number two where three rods are

extruded from the pull-truder. It showed an improvement of 97%

Step-6.Simulation and evaluation

To confirm the possibility of implementing the alternative method,

simulation was undertaken.

4-Result

As Company A is a growing company it really benefited

from the lean thinking and by eliminating waste processes.

23

4.3-Case study-313

Title:-Kaizen Implementation in an Industry in India

This case study was undertaken at HV Axles ltd.

1-Company Profile

The company HV Axles ltd which earlier was a division of Telco is

located in Jamshedpur. The major product of the company is front

axle and rear axle. It currently supplies its products to Tata Motors

Jamshedpur and Lucknow plants for commercial vehicles. This

company is mainly focussed on manufacturing as per customers

design

2-Problems faced

1-Numbers of operators like to exceed in assembly line

2-Low production efficiency

3-High production cost

4-Quality maintaining problems

5-System for simplification

13

gautam Rajesh,kumar Sushil,singh Sultan,2012 kaizen implementation in an industry in India:a case studyIJRMET,vol-2,P27-32

24

3-Implementation of Kaizen

1-Problems were discussed to managerial personals, engineers and

operators levels by considering different factors

2-Imparting proper level of training. Training was carried out by

internal/external faculties to create awareness, improving

communication and operating skills of the employee.

3-involvement of employees through group activities like quality

circles, suggestion schemes

4-Quality indicators had been employed examine the achievement of

suppliers in quality

5-Supplier companies were choosed near to the case companies to

reduce the time spent in distribution.

6-Kanban was used for transforming the information throughout the

production process.

4-Result

After using Kaizen number of operators remains same as earlier for

performing the same operation. This was possible only by multi

skilled and well trained operators.

Relevant task were given to carry out at relevant work stations.

Minimization of cost and increase in productivity is achieved because

operators become efficient.

Production improved from 210 axles per shift to 300 axles per shift by

less number of operators.

25

4.4-Case Synthesis

Parameters Case Study-1 Case Study-2 Case Study-3

Problems .Customer Dissatisfaction

.Weakness in

Product

.Storage Problem

.Low efficiency

.High Cost

.Poor Quality

Cause .Inefficient coordination

Poor engineering

Solution

.Lack of

multiskilled

workers

.Lack of Training

Objective .Streamlining the process of call

handling

.Reducing call

waiting time

.Providing new

solution for

product quality

.Expansion

.Increasing the

efficiency

.Creating pool of

multitasking

workers

.Reducing

Production Time

Methods .Cause and effect diagram

.Brainstorming

session

Designing new

storage methods

.Simulation

.Cost effectiveness

.Discussion and

planning at top

level

.Internal and

external training

.Use of quality

programmes like

JIT and Kanban

Information

System

.Charts/Posters

.Directory

Not seen .Electronic data

interchange

technique

.Suggestion

system

Changes

Brought

Drop in waiting

time for callers

.Better storage

system

.Multiskilled

employees

.Increased

production

.Reduction in

production time

Result .Positive .Not fully

achieved

Positive

.Positive

.Reduced Time of

Production

\

26

5:-Lessons Learnt

A) Overall

1-KAIZEN is a process oriented approach, hence has lasting impact

2- There is a high level of employee involvement which enhances

their morale and motivation.

3- It helps to improve quality, thereby enhancing customer

satisfaction.

4-It helps to improve productivity resulting in low cost of operation.

5- It helps to reduce the rate of accidents thus improving work safety.

6- It aids in waste reduction in areas such as inventory, waiting time,

transportation and others which in turn aids in better utilization of

space and resources.

B) Relevance to INDIA

In todays scenario of globalization our Indian companies are not

behind in implementing KAIZEN in their unit/plants/offices so as to

reduce waste and increase efficiency.

1- As we just seen that HV axles successfully implemented

KAIZEN to increase production

2- Escorts Agri machinery plant implement KAIZEN in their plant

to minimise waste and achieve specific goals. They implement it

through SGAs

3- Moser Baer Plant at Greater Noida implement KAIZEN to

minimise defects in their manufacturing

4- Lucas TVS, Chennai, Tamil Nadu conserved energy in capitive

diesel generation sets through KAIZEN. It enabled them to

conserve 84000 litres of high speed diesel per year.

27

6-Conclusion

Kaizen means improvement. It means small improvements done

consistently over a long period of time. If we integrate the kaizen

principles into our workplace, we will see improvements right away,

and great improvements in the long term. We will see improvements

in at the workstations, in the office and in our employees.

Kaizen is a philosophy that needs the involvement of all people in the

company. Emphasis should be placed on reduction in time, removal

of waste processes to meet the goal, and elimination of unnecessary

operations, activities and workstation.

It is also apparent that many organizations could gain from utilizing

the lean thinking approach. However the major components of Kaizen

are the use of teams, the use of problem-solving tools, and an

orientation to the lean thinking philosophy to reduce muda.

.

28

Overall Cycle:

14

14

Source: Archfield Consulting Group

29

7:-References/Bibliography

1-BOOKS

a) Sharma.d.d(2000) Total quality management, Delhi sultanchand &sons

b) Charantimath Poornima,(2003) total quality managementDelhi,Pearson education

c) Masaaki imai 1984,the key to japans competitive success,Singapore,macgraw hill

2-Journals

1-Mishra, Gupta anshul2010, kaizen culture: enabling organizational change

management, GJEIS, vol-2

http://www.ejournal.co.in/gjeis/index.php/GJEIS/article/viewFile/112/62

2-Lee Samson et al, 1999-2000, kaizen: an essential tool for inclusion in

industrial technology criteria, JIT, vol-16,

http://atmae.org/jit/Articles/lees1101.pdf

3-Farris.A.Jennifer et al, 2008, learning from less successful kaizen events-a

case study, EMJ, vol-20,

http://lostlagoon.info/IMFILES/5PCS%20Learning%20from%20less%20succes

sful%20Kaizen%20events.pdf

4-gautam Rajesh, Kumar Sushil, singh Sultan, 2012 kaizen implementation in an industry in India: a case studyIJRMET, vol-2, http://www.ijrmet.com/vol2/a984.pdf

3-Websites for Images

1- leanimprovement.blogspot.com

2- http://www.wcmfg.com 3- http://www.kaizentek.com