“kaizen from start to finish?” - asq orange...

9/10/2013

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“KAIZEN FROM START TO FINISH?”Vinay Goyal

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Disclaimer

• This presentation has nothing to with my current employer and its internal practices.

• I will try to avoid sharing names and internal practices of my previous companies during my presentations (unless they no longer exist)• All of the companies I worked for or with were successful

companies in their respective fields

• A copy of this presentation will be posted on Section website• Part I is already presented on

section website• http://asqorangeempire.org/

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Presentation Outline

• Due to the nature of the topic:• This is a Three part Presentation

• Part I:• What is Kaizen?

• What are the key definitions, terminologies that are commonly used with Kaizen?

• Part II:• Kaizen Planning

• Management Support

• Team Building

• Implementation

• Part III:• Reporting

• Celebration

• On-going sustaining and future Kaizen Planning

• Q & A

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Those who have been part of the Kaizen• This is an interactive session

• Please feel free to share your success (or “failure” ) story• If you have any questions, please feel free to discuss, email me at

[email protected]• If I do not know the answer, I will get back to you.

• Last session in October will be a Q&A session

• Those who are new to Kaizen• Please feel free to ask questions

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Quick Review

• Kaizen (改善)• The Japanese – Kanji - word "kaizen" simply means "good

change” or English word “improvement”• No inherent meaning of either

• “Continuous" or “Philosophy”

• It can be: One-time, On-going, Large or Small

• It is a combination of • Philosophy and (Kaizen) Related measuring methods

• Often it may look like a common sense but that too comes with• Exposure

• Experience

• Listening

• Sharing

• Discussing

• Most importantly Be a Good Listener First and look from other’s perspective

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Quick Review

• Kaizen (改善)• There should not be any rank

• Leave your ego at the door

• Everybody has equal opportunity to speak

• No idea is a bad idea

• Intention is not to look for a perfect solution • Yes, if possible

• But look for a better and improved solutions

• Keep making it better in smaller increments

• We cannot do it alone, so bring people from cross functional areas and work on process improvement

• Good Changes have no boundaries

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Kaizen• Endless Pursuit of Waste Elimination

• A continuous improvement mindset

• Everything that we do today can be improved

• Kaizen has no end• So title Kaizen from Start to Finish

• Finish means a short break for celebration but it is a never ending process

• Kaizen is gradual approach to improvement • Other approach is Great Leap approach also known as Innovation

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Kaizen Innovation

Japan Strong Weak

West Weak Strong

3 MUs• Toyota Production System (TPS) picked three Mus

• Widely recognized as a reference to product improvement program

• Muda (Waste, Uselessness) • TIMWOOD:

• Transportation, Inventory Motion, Wait, Over-processing, Over-production, Defect

• Mura (Unevenness)• JIT system

• Keeping little or no inventory

• Supplying the production process • With the right part, At the right time, In the right amount, and First-in, first out

(FIFO) component flow.

• Muri (Overburden)• Putting employees or processes under unnecessary stress through

making unreasonable demands on them

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3 MUs

• Waste reduction is one of effective ways to increase profitability • Value:

• A process adds value by producing goods or providing a service that a customer will pay for

• Waste• A process consumes resources and when more resources are

consumed than are necessary to produce the goods or provide the service that the customer actually wants

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5 Ws and 1 HWHO

• Who does it?

• Who is doing it?

• Who should be doing it?

• Who else can do it?

• Who else should do it?

• Who is doing 3 MUs

WHEN

• When to do it?

• When is it done?

• When should it be done?

• What other time can it be done?

• What other time should it be done?

• Are there any time 3 MUs

WHAT

• What to do?

• What is being done?

• What should be done?

• What else can be done?

• What else should be done?

• What 3-MUs are being done? being done?

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5 Ws and 1 HWHERE

• Where to do it?

• Where is it done?

• Where should it be done?

• Where else can it be done?

• Where else should it be done?

• Where are 3 MUs being done

WHY

• Why does he do it?

• Why do it?

• Why do it there?

• Why do it then

• Why do it that way?

• Are there any 3-MUs in the way of thinking?

HOW

• How to do it?

• How is it done?

• How should it be done?

• Can this method be used in other areas?

• Is there any other way to do it?

• Are there any 3-MUs in the method?

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Innovation, Invention, Kaizen and Standardization• Invention

• 1 : The introduction of something new

• 2 : A new idea, method or device

An invention is useful only to the inventor unless it is offered to the public

• Innovation:• If the invention improves some product, process or service for the

public, then that invention transforms into an innovation. • New technological break through or new features that is incorporated

into a product, system and/or methodology to improve its usefulness

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Innovation, Invention, Kaizen and Standardization• Kaizen

• Improve existing system by systematically eliminating non-value added processes

• Standardization:• Maintaining Status quo

• Maintenance• Activities that are directed to maintaining current technological,

managerial and operating standards

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Innovation, Invention, Kaizen and Standardization

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• Management Maintenance Task:• Establish

• Policies• Rules• Directives• Procedures

• Monitor • They have been

followed• People are able to

follow but do not follow• Introduce

Discipline• People are unable to

follow• Take appropriate

actions• Training• Review and • Revise

Maintenance: By Management

Maintenance: By Workers

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Kaizen versus Innovation

• But the reality the actual progress achieved through innovation generally follows the pattern

• Why?: • Once a system is placed as result of innovation

• Deteriorate unless continuing efforts to• Maintain and Improve

• Supported by the ManagementIn

no

vati

on

Inn

ova

tio

n Inn

ova

tio

n Kaizen

Kaizen

Kaizen

It lacks the Kaizen strategy go along with it.

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Kaizen versus Innovation

• If standardization is just to maintain the status quo (existing status of affairs)

Inn

ova

tio

n

Inn

ova

tio

n Inn

ova

tio

n Standard

Standard

Standard

Inn

ova

tio

n

Inn

ova

tio

n Inn

ova

tio

n

Kaizen efforts not only maintain the standards but also take them to new heights

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In the Innovative Society

• Economy is cyclic in nature• Goes Up and Down

• Management talks about Kaizen• When economy is slow

• When economy is good• Companies

• Often invest more resources than necessary to avoid any problems or excuses

• Forget about Kaizen thinking, approach, lessons learned from the past

• But if they mix Innovation with Kaizen• It will help in faster time to market and more reliable product

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Management Support

• Quality Starts From the Top• It trickles down from the Management

• Kaizen (improvement) efforts will fade away with the time if not supported by the management

• This is single most important thing in any organization for Kaizen efforts to be successful

• Management could be• The CEO, President, General Manager, Senior VP, VP

• Manager

• Supervisor

• Team Leader

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How to Get the Management Support

• Unless Senior Executives are aware of Kaizen benefits and believe in Kaizen Philosophy• Often it is a challenge

• Otherwise the burden of proof lies on you• To convince

• Justify proper support

• In order to get Management support for Kaizen• Use Kaizen approach

• What are the two key things about Kaizen?• Small increment(s)

• Supported by ROI

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• What is ROI?• ROI: Return On Investment

• Bottom Line Results

• ROI can be:• Savings

• Making processes more efficient• Often making process more efficient are not cost savings

• They improves• Customer (internal and external) satisfaction

• Quicker and faster response time,

• Employees Moral• Good work environment – Practically possible and realistic (Muri)

• Bottom line results = more business

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• Ultimately every improvement will be good for the bottom line ($$$)• Directly or Indirectly (sometimes it so transparent that people do

not give the due credit to Kaizen Team and Kaizen efforts)

• Never give up in believing that

• Everything that we do today can be improved

• Even if you do not get the support, keep improving whatever you can within your control and given resources

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• If you work hard and diligently• Will definitely help the employer (or your boss) but in the long term

it is going to help you

• You will be standing in front of your potential employer (or a big gathering) and speak up your achievements without any fabrication

• Always remember if you ever feel stuck in your professional career• That is not the end of the world

• But always remember grass is not greener on the other side of the fence• Every company has challenges that we need to learn how to over come

• Use Kaizen principles – how to do it

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• If you do right things and are better than most of the people• You will be recognized for your efforts Sooner or Later

• Display Manufacturer• Customer returns story – my first break through

• Contract Manufacturer • Process improvement – saved $15K ($180K) per year

• ISO and RoHS efforts• Be ready to take the challenges

• Linking Shop Floor Control to Company ERP system• Small budget to large budget

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Team Building

• Most if not all ASQ certification course covers this topic

• Team building and getting the right support is crucial for any project

• Personal matter/domestic matters• You are the CEO (sometimes)

• You are accountable to yourself

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Team Building

• Organization• You are accountable to people

• Above you and

• Below you

• As the organization grows • It becomes more complex, challenges grow

• Some of the challenges are:• Finding the right people

• Right support

• Timely support

• Changes – you may have to start all over again

• Training

• Conflict

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Team Building - Challenges

• Finding the right people• Big Organizations

• Typically support comes from Senior Executives

• If it is important for the business

• RoHS and ISO

• Executives once convinced, will ask what kind of resources you need• That is their job; they control the resources e.g. Money, Man Power and

Training

• You need to provide the plan, resources required and the road map with expected completion date(s)

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• Right support• Either you have to provide a plan or

• Executives will provide you

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• Timely support• Once you form the team

• You create a score card• Actions

• Achievements

• Results

• Challenges

• If someone is not cooperating• You have to escalate

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• Changes – you may have to start all over again• Certain people are going to change their positions

• New Hires

• People leaving the organization

• This is a constant challenge• Especially if there is a significant change in organization or re-

organization

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• Training• Training team members

• Re-training/Refresher

• Bringing new person up to the speed

• Change in plan and approach

• Outside help

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• Conflict• Conflict is one of the biggest challenge

• It comes because of the ego

• As a leader and team member• It is one of the most challenging thing to overcome

• Anytime there are more than one person• Conflict is obvious

• Conflict Resolution• Learn with experience

• Life time learning experience

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Team Building - Challenges• How to run the meetings

• Is an art• You cannot treat everybody with the same stick

• Tactful• Honest/Ethical

• Like in my case, I am not a public speaker

• Upfront• Build your credibility• Open communication (not never ending)• Be a good listener• Put yourself in other’s shoes – look from his/her perspective

• A very qualified person but with bad attitude is better than a person with good attitude and willing to learn

• It comes with experience

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Team Stages

• Most teams go through four development stages before they become productive:• Forming,

• Storming,

• Norming, and

• Performing.

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Types of Teams

• Working Teams• are basic to any organization are divided according to their function

and they perform ongoing tasks for any organization: Marketing teams, Human Resource teams, Finance Teams. They.

• Special Purpose Teams• are formed to fulfill a special purpose or a one time off project

• Usually, these teams are not permanent and they are usually disbanded once the purpose of the team is served.

• These teams include working committees for a particular event, or a committee that comes together to solve a particular problem

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Types of Teams• Multifunctional Teams (Typical Kaizen Team)

• Consist of members formed from different areas of expertise • Can be short of long term - depending on the nature of the

organization

• Self-Directed Teams• Self-Directed Teams do not have a clear leader. They have shared

leadership and share responsibility of their work. Example of music group – self improvement

• Self-directed teams are not very common in companies and big organizations due to lack of recognition and reward

• Management Teams• Management Teams are like board of directors of a company. While

there is a Chairman of the Board, the directors come together to deliberate on a matter

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Implementation

• My experience• Review the problem (challenge)

• Document every (at least key) activities

• Always have action items at the end of the meeting

• Distribute meeting minutes

• Monitor the progress

• Share with the team• Give them the due and fair credit

• Share with the management

• Be good in writing reports and presentations

• Do not write a book• Keep is clear, precise and concise – these days no body is has time to

read long reports, emails.

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Implementation

• From Kaizen’s perspective:• Always remember incremental (small steps)

• Best use the resources available to you

• Your vision should be to make it perfect and world class one day• But in gradual steps

• Think to work smarter than harder

• Make processes user friendly

• Remember Kano Model• Be a delighter

• It is not a one time improvement• Improvement = Innovation + Kaizen

• Kaizen – Sustain, Kaizen – Sustain…………

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Implementation

• Do not get discouraged with the people making sarcastic comments• Believe in educating yourself and your team members

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• Last month I mentioned how section financials changed • From losing $1500 ($18,000) per year to positive cash flow

between 2007-2009

• Did not increase the dinner meeting registrations fee• Kept is at $30.00

• Heavily subsidizing• Dinner meetings, Quality Day and December Social

• Discounts for refresher courses for unemployed and students

• Better gifts/compensation for speakers, instructors

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Kaizen Activities at ASQ 0701

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• Kaizen Activity 2:• One day we have had over 90 people

• Parking was an issue

• People were coming late

• Long line at the registration desk

• Registration people as well as members were going through “Muri”

• We figured out that it was not acceptable• We decided to look for a better option

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• Parking and Long Line• Parking – we worked with the hotel

• They offered Valet parking in case the parking lot was full at some reasonable price

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• Long Line• We started looking for event management program/tools

• We came across an event Management tool “Cvent”

• We figured out the using Cvent members can register on-line in less than a few minutes

• We can monitor from the back-end who has opened and responded the invitation

• Send the reminder who has not opened or responded

• Opt-out option

• Avoid excessive cash/check handling• We are not professional accountants

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• Long Line• Cons:

• About $6000 per year ($500 per month) expense for everything

• Some people were not comfortable giving their credit card information

• Who is going to do the set up (time consuming)

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• Long Line• Pros:

• You can easily find the invitation email in your email box or registration links from section website, find out the topics/speakers of upcoming event

• Instant on-line registration from anywhere in the world• Shorter lines, waiting, motion

• Print badges• Direct deposit in Bank Account

• Lesser cash/check handling

• Greater visibility for expected members attending the event• Inform hotel ahead of time for food, seating (+/- 10%)

• Early bird and other discounts• Registration not only for the dinner meetings but all educational courses• 4 Meals choices (Chicken, Beef, Fish and Vegetarian)

• Beef – Please thank Luke Foo for his great recommendation

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• Benefits• Our section dinner meeting attendance grew by 30%

• From 40-50 to 60-90 members per month

• Our educational courses started having about 100 students per quarter in all available refresher courses

• Cost of subsidizing has gone down• Fixed cost has gone down (Room, Microphone, Screens etc.)

• Our database grew from paid members to all who wanted to be on the distribution list• 1200-1300 paying members;

• 3000 non-paying members but would like to be notified (willing to pay higher price to attend an event as non-member)

• No served dinner option for paid members ($0) and non-members ($10)

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• Using Cvent• We started doing Annual Member Satisfaction Survey

• Improved response rate to >10%• Hardcopy response was 5 max (less than 1%)

• ASQ World Conference• Volunteer Registration (over 70 Volunteers for the week long events)

• Training

• In terms of ROI:• With less than $5:00 per member per year

• Improved – efficiency • Registration (both for members and LC team), - happy customer

• Cost• Increased attendance helped in reducing cost and investing savings for our

membership (subsidizing the events)

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Kaizen

• What is this?• This is what Kaizen is all about

• Bad part is, it is so transparent, often people do not appreciate the improvements taking place behind the scene

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Kaizen• Please congratulate any Leadership committee member you

see or meet for all the hard work they put to make it happen• Dave Nagy

• Bob Mehta

• Luke Foo

• Of course one more• That’s me.

• Other new leaders to Kaizen and Sustaining it

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Ed Matthews Don Shannon Anet Ant Briana Sallows Laurie Patton

Steve Martin Stan Smith Mark Lindsey Jay Mehta

Next Month

• Part III:• Reporting

• Celebration

• On-going sustaining and future Kaizen Planning

• Q & A

• More Kaizen related stories

If you have any questions, please email me at [email protected]

In the subject: please type Kaizen

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SINGLE PIECE MANUFACTURING500 minutes versus 104 minute example:

500 minutes = 1.2 days (based on 7 hours production hours)

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SMT Reflow AOI

Current State of the Process

Stuffing & Wave

SolderingTest

Inspection, Rework

and Wash

Inspection, Rework

and Wash

Inspection, Rework

and Wash

QA

Inspection, Rework

and Wash

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SMT Reflow AOI

Batch Mode (Island Approach)

Stuffing & Wave

SolderingTest QA

100 100 100 100 100

1 1 1 1 1

100 200 300 400 500

SMT Reflow AOI

Single Piece Continuous Mode

Stuffing & Wave

SolderingTest QA

100 100 100 100 100

1 1 1 1 1

1 2 3 4 5

99

+

Total 104 Minutes

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Advantages

Real time feedbackBetter First Pass YieldShorter processing timeLesser HandlingLesser Handling related damagesQuicker turn around timeLittle/no slack timeLess Manpower/ResourcesLesser storage space

Efficiency improvement

500 minutes versus

104 minutes

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Challenges

Line Balancing

Documentation / Design Review

Tighter up front controls

Real time corrective actions

Prior prepping of partsBetter prepping instructions

Disadvantages

?

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This is the model used by

WORLD

CLASS COMPANIES

“kaizen from start to finish?” - asq orange...

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