1. 1. Kaizen The Key to Japans Competitive SuccessPresented By:Dr. Yasser MostafaQA Manager Al Yasra Food Co.
2. 2. Speaker Profile:Dr. Yasser Mostafa Certified Quality Manager ASQ LA ISO 9001, 14001 & 22000 Member in Kaizen Institute Egypt B. Sc. in Veterinary Medicine from Cairo University. Over more than 12 years, with accumulated experience in quality field in Egypt, Saudi Arabia and Kuwait. Currently he is Quality Assurance Manager in Al Yasra Food Co. Member International Register of Certificated Auditors (IRCA) Member in American Society For Quality (ASQ) Member in Egyptian Society For Quality (ESQ)
3. 3. Contents: 1. KAIZEN, The Concept2. Improvement East and West 3. KAIZEN by Total Quality Control4. KAIZEN, The Practice5. KAIZEN Management6. The KAIZEN Approach to Problem Solving 7. Changing the Corporate Culture
4. 4. What is KAIZEN?Kaizen translated literally means Change for Good. Kai to take apart; to change Zen good Kaizen: to take apart and change for good
5. 5. Masaaki Imai-known as the developer ofKaizenKaizen originated in Japan in 1950First, it was been introduced andapplied by Imai in 1986 to improveefficiency, productivity andcompetitiveness in ToyotaIf you learn only one word ofJapanese, make it KAIZEN. Masaaki Imai
6. 6. Introduction It is a planned and controlled change to achievethe next step in continual improvement It moves you from the existing Current State towardthe defined Future State you have established asyour goal. Kaizen is a process of continuous incrementalimprovement. The kaizen blitz is a five-day continuousimprovement activity focused on a very specificprocess. True Kaizens are typically done as a focused blitz: A point in time team effort rather than a gradual metamorphosis over time.
7. 7. Why Kaizen Events?Future CurrentKaizen StateState(Lean)Kaizen drives the improvements which lead to a leanerbusiness operating system
8. 8. Two elements of KAIZENThere are two elements that construct KAIZEN:Improvement/Change for the betterOngoing/Continuity/MaintenanceLacking one of those elements would not beconsidered KAIZEN.The philosophy of Kaizen has kindled considerableinterest among researchers because it increasesproductivity of the company and helps to producehigh-quality products with minimum efforts.
9. 9. Kaizen Philosophy Kaizen, also known as continuous improvement,is a long-term approach to work thatsystematically seeks to achieve small, incrementalchanges in processes in order to improveefficiency and quality. Kaizen can be applied to any kind of work, but it isperhaps best known for being used in leanmanufacturing and lean programming. If a work environment practices kaizen,continuous improvement is the responsibility ofevery worker, not just a selected few.
10. 10. Kaizen Philosophy Kaizen can be roughly translated fromJapanese to mean "good change." The philosophy behind kaizen is oftencredited to Dr. W. Edwards Deming. Dr. Deming was invited by Japaneseindustrial leaders and engineers to helprebuild Japan after World War II. He was honored for his contributions byEmperor Hirohito and the Japanese Unionof Scientists and Engineers.
11. 11. What is Kaizen Events? Evaluate Implement Plan and Design Assess/ReassessKaizen activities that address issues over a period of one week hadbecome the industry norm and they had been named as Kaizenevents. These small models are used to understand problems andissues in the business processes, arrive at solutions, and applythem to improve the processes and eliminate wastes.
12. 12. Five Main Areas of Kaizen Teamwork (Most Important) Personal discipline Improved morale Quality circles Suggestions for improvement
13. 13. Who are Stakeholders Whobenefit from Kaizen?The principal stakeholders ofKaizen philosophy are: Employees of the organization. Top level management last level worker in thecompany. External stakeholders likevendors, customers, and Shareholders.
14. 14. The Kaizen Umbrella Customer orientation Kamban TQC (total quality Quality improvementcontrol) Just-in-time Robotics Zero defects QC circles Small-group activities Suggestion system Automation Cooperative labor- Discipline in the management relationsworkplace Productivity TPM (Total Productive improvementMaintenance) New-productdevelopment
15. 15. Benefits of KAIZEN Reduces waste- like inventory waste, time waste,workers motion. Improves space utilization, product quality Results in higher employee morale and job satisfaction,lower turn-over. Widely acceptable-can be used in both manufacturingand non-manufacturing environments, for processes aswell as people. Highly effective and success-oriented-Kaizen events willgenerate quick results, measurable results, establish thebaseline and measure the change. A learning experience-every member of a Kaizen Teamwill walk away from the event learning something new
16. 16. Pitfalls in KAIZEN Resistance to change Lack of proper procedure toimplement Too much suggestion may lead toconfusion and time wastage
17. 17. Easy Kaizen Flow1 START2 3 Establish existence Develop problemIdentify problem of problem statementEND 7 4Document/Standardize Formulate solution(s) improvements 6 5Evaluate results Implement solution(s)
18. 18. Kaizen, The Concept
19. 19. Jobs Function Perceptions Japanese Western perceptionsperceptions Top managementMiddle management Supervisors Workers
20. 20. Middle TopManagement &Supervisors WorkersManagementStaffDetermine to introduce Use Kaizen in functionalKaizen as a corporate Deploy and implementrulesEngage in Kaizen strategy Kaizen goals as through the suggestiondirected by topsystem and smallmanagement through Formulate plans forgroup activitiespolicy deployment andKaizen and provide Provide support andcross functionalguidance for workersdirection for Kaizen by management allocating resourcesPractice discipline inImprove the workshopUse Kaizen in functional communication withEstablish policy for capabilitiesworkers and sustain Kaizen and cross high moralefunctional goalsEstablish, maintain, and upgrade standardEngage in continuous Support small groupself-development toactivities (such as become better problem Realize Kaizen goalsquality circles) and thesolversthrough policy Make employeesKaizen-concious individual suggestiondeployment and audits system through intensive training programsIntroduce discipline in Build system, the workshopprocedures, and Help employees Enhance skills and jobstructures conducive to develop skills and tools performance expertiseKaizenfor problem solvingProvide Kaizen with cross educationsuggestions// YIS//062709//
21. 21. Deming Wheel DesignResearchProductionPlan Act PDCADo Sales Check
22. 22. Continuous ImprovementKAIZENINNOVATION BreakthroughScience TechnologyDesign Production MarketInnovationKAIZEN
23. 23. KAIZEN1 INNOVATIONLong term Short term Effect Un-dramatic DramaticSmall stepsPaceBig steps Time Intermittent & Continuous & incrementalframenon incremental Gradual & consistent Change Abrupt & volatileEverybody Involvement ChampionCollectivism, Rugged individualism, individual Approach ideas & effortsgroup efforts, systems approach
24. 24. KAIZEN2 INNOVATION Maintenance & ScrapMode Improvement & RebuildConventional know-how & state ofTechnological breakthroughs, the artSpark new inventions, new theoriesLittle investmentPractical Large investment Great effort to maintainRequirements Little effort to maintain Effort People TechnologyorientationProcess & efforts for Evaluation Results for profits better resultscriteriaEconomic Slow growth economy Fast growth economycondition
25. 25. INNOVATIONKAIZENCreativityAdaptabilityIndividualism Teamwork (system approach) Specialist oriented Generalist-oriented Attention to great leapsAttention to detailsTechnology oriented People orientedInformation: closed, proprietary Information: open, sharedFunctional (specialist) orientation Cross functional orientationSeek new technology Build on existing technology Line + staff Cross functional organizationLimited feedbackComprehensive feedback
26. 26. Upcoming Japanese product perceptionsTechnology LevelPreferred Process Product Innovative product HighTechnology orientedwith KaizenTechnology innovation orientation Technology orientedKAIZEN People orientedKaizen orientedLow TechnologyKAIZENproduct
27. 27. Kaizen by Total Quality Control(TQC)The Kaizen philosophy assures that our way of life, or our home life,deserves to be constantly improved- Masaaki Imai
28. 28. 1Quality control deals with the Quality of people2Speaks with data3Quality first, not Profit first4Manage the previous process ( Upstream)5The next process is the customer6Customer oriented TQC, not manufacturer oriented TQC7TQC starts with training and ends with training8Cross Functional Management to Facilitate Kaizen9Follow PDCA cycles10 Standardize the results
29. 29. 1. Quality assuranceTQC2. Cost reduction3. Meeting production quota4. Meeting delivery schedule 5. Safety6. New-product development7. Productivity improvement8. Supplier managementTQC
30. 30. ManpowerTechniqueMethod TimeMuda (Waste) Facilities Muri (Strain) Jigs and toolsMura (Discrepancy) Materials Production volume Inventory PlaceWay of thinking
31. 31. ACTPLANStandardiz Definitions ation of problemCHECKConfirmation Analysis ofof results problem IdentificatiImplementon ofation causes PlanningDO counter- measures
32. 32. Kaizen The Practice
33. 33. Maintain aquestioning & Use tools &Achieve open-minded facilitates to maximumMaintainattitude for Eliminate hard maximizequality with minimum constantwork quality & maximum inventoryimprovement efficiency & efficiencybased onminimize effort teamwork & cooperation
34. 34. 5 S Concept: Seiton Straightening Out BSeiri ACSeisoSorting Cleaning Up 5sShitsuke E D SeiketsuSustaining the StandardizingPractice
35. 35. Waste ofWaste in Waste in REJECTS DESIGNWIP quality cost deliveryNINEWASTES !! productWaste inMethod / system FIRST PHASE OF PRODUCTION resources manpowerfacilitiesmoney Waste inWaste inWaste inWaste in Waste in MOTION MANAGEMENTMANPOWERFACILITIES EXPENSES// YIS//062709//
36. 36. Shortened lead timeReduced time spent on non-processworkReduced inventoryJIT Better balance between differentprocessesProblem clarification
37. 37. DesignProductplanningTopAdministrationmanagement responsibility:responsibility :Strategy & QCS Production preparation Provide supportPlanning MarketingProduction&Purchasing
38. 38. Kaizen Management
39. 39. Management & Labor ;Enemies or Allies?CooperationWorking together to bake bigger pieConfrontationfighting over how to divide the pie
40. 40. Managers first job is to learn to communicate with hisemployees so both workers and the company can achieve their common goal Union leader who cannot understand financial statement and analyze the companys performance will not be able to negotiate with management on such labor-related subjects as technological innovation, personnel transfers, and scrapping facilities
41. 41. The Kaizen Approach to ProblemSolving
42. 42. When there is no problem , there is no potential forimprovementsKAIZEN starts with a problem,more precisely therecognition that aproblem exists
43. 43. Seven Statisticaltools New Seven tools Pareto diagrams Relations diagram Cause & Effect diagram Affinity diagram Histograms Tree diagram Control charts Matrix diagram Scatter diagram Matrix data-analysis diagram Graphs PDPC (Process Decision Program Chart) Check-sheets Arrow Diagram
44. 44. WhoWhat Where WhenWhy How Who does it? What to do?Where to do it?When to do it?Why does he do it?How to do it? Where is itWho is doing it? What is being done? When is it done? Why do it?How to do it?done?Who should be What should be Where shouldWhen should How should it be Why do it there?doing it?done?It be done?it be done? done? Can this methodWho else can do What else can be Where else can What other timeWhy do it then?be used in otherit? done? it be done? can it be done? areas?Where elseWho else should What else should be What other time Is there any othershould it beWhy do it that way?do it?done?should it be done?way to do it?done?Where are 3-Are there any 3-Are there anyWho is doing 3- What 3-Mus are Are there any time Mus beingMus in the way of 3-MUs in theMus? being done?3-Mus ?done?thinking?method?
45. 45. VELOCITY FOR COMPETITIVE ADVANTAGEStandardizationProcess optimizationElimination of wasteEvolution in people and techniqueDurable training
46. 46. CUTTINGCHANGE1. Form a team & allocate OVER TIME responsibilities7. Set-up board forvisualization &2. Measuremonitoring current stateSeven6. Analysis &Stepsimprovem 3. Analysis &entimprovement 5. Set process4. Apply first with newimprovement scenario
47. 47. Kaizen Costing Concept
48. 48. Kaizen Costing Concept Target Costing is a process, Ensuring that the products aredesigned in such a way that thecompany can sell them cheaply &still make a fair profit. Kaizen costing focuses on thevalue & profitability of themanufacturing phase, both of new& existing products. Kaizen costing activities should bea part of a process of businessimprovement continuously, withimprovements in quality, productfunctionality and service jointly.
49. 49. Kaizen Changing theCorporate CultureA never-ending journey
50. 50. The customer :1The ultimate Judge of quality The eye of the needle 2 struggle to enter the market Supplier relations 3 Changing Corporate culture : 4 Challenge to the westWe call some societies primitivebecause of their desire to remain in thesame state and in unchanging standardof living as their ancestors createdthem at the beginning of time
51. 51. Establishing betterDeveloping additionalcriteria to measure supply sources thatoptimum inventorycan ensure fasterlevels deliveryBUY(Outsidecontactors)Improving the quality Improving how ordersMAKEare placed of information providedto suppliers(part time/contractemployee)Establishing betterUnderstanding the physical distribution suppliers internal system requirements better
52. 52. Companies applying KaizenPharmaceutical Industry: Food and Beverages IndustryBoehringer IngelheimNestlSanofi AventisUnileverPfizerFinancial ServicesCadbury SchweppesSchwarzSociete Generale BongrainMerckUnilabsNational Australia Bank/Bank ofSadiaTchiboZydus Cadila New ZealandN.M. RothschildBacardiEuropcar Lease ServicesPernod RicardCommonwealth BankBrown FormanAdelaide BankHochlandSt.George BankHealthcarePublic SectorIndependent Hospitals of Australia Government of the United ArabHospital General de Santo AntonioEmiratesCalgary Laboratory ServicesGovernment of MauritiusMayo ClinicGovernment of KenyaDanbury General Hospital Government of IndiaOwensboro Medical Health System
53. 53. 7 Principles of ToyotaProduction System (TPS)1. Reduced Setup Times2. Small-Lot Production3.Employee Involvement andEmpowerment4. Quality at the Source5. Equipment Maintenance6. Pull Production7. Supplier Involvement
54. 54. Statements on KAIZENThe starting point for improvement is to recognise the need. This comesfrom recognition of a problem. If no problem is recognized, there is norecognition of the need for improvement. Complacency is the arch-enemyof Kaizen. Therefore, Kaizen emphasizes problem-awareness andprovides clues for identifying problems. Masaki ImaiImprove constantly and forever the system of production and service. Improvement is not a one time effort. Management is obligated to continually look for ways to reduce waste and improve quality. W. Edwards Deming (philosophy of quality control)The Kaizen philosophy assures that our way of life, or our home life,deserves to be constantly improved- Masaaki ImaiWant a Kaizen Culture? Take You Vitamin C!Kaizen Principle: Be like MacGyver, use creativity before capital!
55. 55. Conventional JapaneseWisdomRevolutionsHigher quality leads to Higher quality leads tohigher costs lower costsLarger lots lead to lowerSmaller lots lead tocostslower costsWorkers do not need toA thinking worker is abe taken into account productive worker
56. 56. KAIZENPHILOSOPHYBe it our working life, our sociallife, or our home life, deserves tobe constantly improved
57. 57. Good is never good enough,kaizen is a never-ending journey toexcellence. Thanks