KAIZEN – THE SECRET WEAPON IN THE GLOBAL MARKET COMPETITION

VSC Young Talent Training Roadshow 2012Nguyen Viet Dang Khoa, 10/ 20/ 12

The evolution process from Anthropoid to man

“It is not the strongest nor the most intelligent of the species that survives, but the one that is most adaptable to change” Theory of Evolution - Charles Darwin

Do people really want change?What is adaptation?

Do behaviors change?

Wet baby is the only person who likes change

most

THE CHANGE OF VIET NAM AO DAI

DO WE SEE THE EVOLUTION IN OUR LIFE

The evolutionary process of science technology

NA D

WHAT’S KAIZEN?

INTRODUCTION: KAIZEN - A GLOBAL CONCEPT

In Japanese, Kaizen comes from the kanji characters: “Kai” means "change“, or "the action to correct". “Zen" means "good". Kaizen is the most popular word used in multimedia channels

and social life. Kaizen means small and continuous improvement at all

aspects of work carried out by everyone in an organization. It is the process of consistently discovering and eliminating waste in as little time as possible at the lowest cost.

Kaizen is interpreted by clear message: let’s do it better even it has been good so far. Why? If you don’t do it, you cannot take the advantages against your competitors.

WHERE’S “INNOVATION” COME FROM?

Japanese square watermelon? It’s over!

VN Gold bar watermelon: $160/ EA

Reference: Google images

HOW DOES INNOVATION HAPPEN? How did these changes happen? What thinking methods caused these?

Instant noodle: one of the most valuable inventions in 20th century. It was created by Ando who was not a famous scientist.

Ideas are free The invention of Velcro was made by

a man that noticed small burrs attaching to his pants as he walked in the forest.

•Collection boxes•Shelves•Ladder chairs•Chairs•Baby toys•Toilet paper trays

RECYCLE KAIZEN FROM CLEANERS

From wood waste to:

Tissue paper

Tray

Baby Toys

Shelf

Chair

Chair

Ladder

Chair

Tissue Box

KAIZEN VS. ROCKET SCIENTIFIC BREAKTHROUGH

THE EAST VS. THE WEST

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icie

ncy

Time

Lean Model: Kaizen

Traditional Model: Invention, rocket breakthrough

KAIZEN RULES1. Everyone participates: there is no rank among

team members – one person, one vote. Do not feel of inferiority; creativity does not depend on education level or grade.

2. Possibility thinking: keep an open mind to change. Taboo words – “Can’t”, “Impossible”, “No way!”. A closed mind does not make things happen

3. Maintain a positive attitude: don’t blame anyone for anything, respect one another

4. There is no such thing as a dumb question5. Plans are only good if they can be implemented.

Plans succeed only if the gains are sustained

TEN PRINCIPLES FOR KAIZEN1. Changing the face is to change nothing but facing the

change is to change everything.2. Ten people move forward a step all the times is better than

one person takes ten steps at a time.3. Throw out fixed ideas about how to do things.4. Think of how to make the new ideas work, not excuse how it

will not work.5. Do not invest too much money on improvements, solve

problems with brain power instead. 6. Don’t seek perfection – a 50% improvement is OK.7. Correct mistakes the moment they’re found.8. Problems are good in terms of brainstorming for

improvement opportunity.9. Do not assume the potential causes; just ask WHY until we

find out the root cause.10. Improvement has no destination

COMMON EXCUSE FOR NOT DOING KAIZEN: TABOO PHRASES

Boss won’t be interested

No time! I’m very busy

It against policy

Why change? It has been good so far

We have done this way for 25 years!

Not enough budgets

We don’t want people looking over our shoulder telling us what to do!

It’s not applicable to our company

We’ll just lose money!

It’s your responsibility, not mine! It’s over our jurisdiction!

1ST KAIZEN SUCCESS STORY

“Let’s change everything, except …

Lee Kun Hee – Samsung President.

Application: 5S, kaizen, PDCA, TPM, Standardized Work, Cell line design, etc.

your wife and your children”

SAMSUNG HISTORY

1938: founded with 40 operators, specialized in fruit and dried fish.

1960: Samsung Electronics established and specialized in electronics, petrochemical industry, and shipbuilding.

1983: still was not the well-known brand name in Korea when they produced the first memory chips.

1995: unique event happened at Gumi factory: 2,000 workers gathered to destroy the big batch of poor quality mobile phones (worth $ 50 millions)2003: caught up Sony2007: global biggest market share (17%) of LCD, leader in digital technology. Took over No.1 position of Sony with 2007 parent company sales of US$100 billion.

SAMSUNG TODAY World’s 10 most valuables companies. Samsung surpassed Apple Inc. as the leading seller of

smart-phones. The latest numbers from IDC show that Samsung shipped 50.2 million smartphones in the Q2’12, nearly double the 26 million iPhones shipped by Apple.

Samsung tops Nokia (which had been the market leader since 1998) again as World’s Biggest Mobile Phone Seller

Sales hit $42.2 billion in Q2’12 Key to success = Design revolution + stamp

of Korean culture + Kaizen Attach every corner in your house.

Toyota in North America:

Nine years ago, Toyota Motor Corporation established

the chain of factories at North America and helped

Toyota become the biggest car manufacturer in the

world.

Toyota’s outward investment in U.S is increased

rapidly: direct investment capital in U.S was $16.8

billions.

GEORGETOWN – TOYOTA FAIRY STORY

GEORGETOWN – TOYOTA FAIRY STORY

Camry and Prius are two best-selling brands at U.S because of economization on saving but same quality compared with GM and Ford.

KAIZEN IS BUSINESS PHILOSOPHY OF 7,000 OPERATORS WHO ARE WORKING FOR TOYOTA FACTORY IN GEORGETOWN. IN THE FACTORY, THERE ARE OVER 500,000 CARS PRODUCED/ YEAR, MAJORITY IS CAMRY.

Georgetown – Toyota fairy story Georgetown – Kentucky

plant is the biggest factory outside Japan and produces Camry. Defeating two giant guys -GM and Ford - regardless of their “home-court” advantages - Toyota has showed the effectiveness of optimal

weapon: Kaizen.

A mfg. revolution: Tony Hendrichs – a senior worker who has been working for Toyota for 18 years – is very proud of Kaizen philosophy applied everyday in his factory. Whenever problems/ opportunities arising from production lines, every team members will gather and try to improve it together. They call it Kaizen.

Hendrichs is very angry with the complaint among public opinion: he and his colleagues betray their country to Japanese.

He affirm that “Made in USA” Toyota car is the real American brand. Why? 85% of accessories and parts are produced in U.S. Definitely, he said: “Toyota drivers are patriots”

Georgetown citizens also have the same thinking as Hendrichs. They are grateful to Toyota for over $5 billions of investment.

Before 1988- Population: 8,000 - Development area- Low education level - Famous with whisky Bourbon

Now- Population: 25,000; around 7000 people work full time at its Georgetown Toyota plant - All ten local enterprises are in well financial situation thanks to Toyota- One more school/ year- There are much more Kindergartens and colleges than any other cities.- Hospital beds increased to four times.- Prohibition of strong liquor from the year of 2000.

Georgetown Mayor – Karen Tingle Sames is pro-Japanese. She knows that her town is not as good as it is without Toyota. “We have the best water supply and traffic systems in the State of Kentucky”, said Karen.

She’s absolutely right. 70% of income tax paid by Toyota, 90% of business tax is from Toyota as well.

She often visits Toyota factory because she can learn lots of

things there. In the 1st visit, they gave her “The Toyota Way” book.

After reading, she applied the concepts in her town

management. The result was very impressive.

HOW DOES TOYOTA BECOME WORLD’S LARGEST AUTOMOBILE MANUFACTURER IN

2012?

There are three key factors those Toyota develops to a high degree:

Teamwork &

workteam

Kaizen culture

Practice Economy

http://www.newtimes.co.rw/news/index.php?i=15139&a=11054&week=26

KAIZEN CULTURE

Toyota employees generate over one million process kaizen ideas annually.

The more astounding number is the fact that 90% of those ideas are implemented.

The so-called “secret weapon” is an open secret: Toyota executives have created a culture that encourages and rewards this behavior.

Whether you are beginning or continuing your journey in global supply chain competition, the transformation to a kaizen culture is vital to your success.

According to Zawacki, one of the Toyota’s secretes of success is reducing waste of material. They try to recycle most of the wastes.

Localization is also a judicious policy. When Toyota opened more and more factories in U.S, everyone worried that the Japanese domination could upset American labor market. Actually, Toyota planned to Americanize their workforce/ management initially due to political reason. (Wall Street Journal quoted)

40,000 American employees/ Toyota factories

400,000/ outside vendors.

5% Japanese only. Job security after

military service.

In the main entrance, the U.S flag flutters in the

wind.

REFERENCES Kaizen Event Implementation Manual - Geoffrey

Mika, Society of Manufacturing Engineers - Dearborn, Michigan

Lee-Dae – KIA economic Research Institute MGNT 7322 Managing operations for competitive

advantage – Georgia Southern University http://www.graphicproducts.com/tutorials/kaizen/

kaizen-at-sony.html

KEY TAKE-AWAYImagination is more important than

knowledge because Knowledge is limited and Imagination is infinite – Einstein

THINK OUT OF THE BOX as Robert Noyce said: Don’t Be Encumbered By History, Go And Do Something Wonderful !

Become a learning organization through relentless reflection (Hansei) and continuous improvement (Kaizen)

Kaizen: moving forward a step at a time…

all the time…

Thank You!