11/18/2013

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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 and II presentation slides are already posted on section website• http://asqorangeempire.org/

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Presentation Outline• Due to the nature of the topic:

• This was a Three part Presentation• Part I: (In August Clinic)

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

Kaizen?• Part II and III (In September and October Clinic)

• Kaizen Planning• Management Support• Team Building• Implementation

• Part IV• Case Studies and • More case studies• Achievements and Lessons learned

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Additional

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

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

vinaygoyal@sbcglobal.net

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

• We have 2 guest presenters today• James McNamara – slides cannot be shared • Bhavna Mantha – slides are included

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Any Questions from the Previous Clinics ?• August, September and October Clinic Presentation

• Slides are posted on section website • If you have any questions, feel free to discuss with me

• Last month someone from the audience made a statement that the quotation “You must be the change you want to see in the world” was not from great Indian Philosopher and Leader Mahatma Gandhi• Indeed the guest presenter was correct. This classic quotation

is from Mahatma Gandhi. • “You may never know what results come of your action, but if you

do nothing there will be no result”

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Quick Review• Literal meaning of Kaizen is

• Good Change (IN English: Improvement)• We can call it Continuous Improvement or Japanese

Philosophy• Kaizen is a

• A Mindset, • An approach, • A conviction, • A way of thinking

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Quick Review• Kaizen (good change) has no boundaries

• It can be applies at • Home • Personal life• Any kind of business environment• Relationship between two countries• Technology• Healthcare• Environment• War and Peace• Literally every where

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Quick Review• Does Kaizen mean to improve bottom line results

• In CEO’s or CFO’s terms• $$$

• No, it is to bring a change and to make it good (or good change)• Good change does not always mean $$$• Good change can be:

• Improve efficiency• Automation

• Customer satisfaction• GPS, Power windows, Alarm as standard item in cars

• Improve Safety• Human and Environmental

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Quick Review• Improve efficiency

• Automation• Transportation, • Inventory Management • Motion of the Operators, • Wait • Over-processing • Over-production• Defect

• Short term automation is expensive but long term it will be more economical

• Customer satisfaction• Seismic compliance, waste water analysis, User friendliness

• Improve Safety• Human and Environmental

• Less burden on medical cost, less burden to keep you healthy and therefore on the society

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Quick Review• Unfortunately short and long term Kaizen results (gains)

in CEO or CFO terms $$$ are so small or transparent that they often go un-noticed• People do not get due recognition

• No incentive to do a good job• Employees stop sharing improvement ideas• Instead of being a leader, they become a follower and start depending on

instructions from someone• Attitude becomes: You tell me what do you want and I will get make it happen

• Leaders (sitting in their offices) start making decisions • Putting unrealistic demands on employees• Making policies and procedures that are confusing , and not easy to follow• Start thinking that people who carry out the work

• Either do not have ideas or • Not worth to ask for their opinion

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QUICK REVIEW• Examples

• 1993 – I was new to Quality (from Design, test Engineering, Customer Service to Reliability)• ISO 9000 • About 300 employees, 3 shift, 24/7 operation• Not all, but some procedures were there but either

• They were like show piece• Never revised or updates since their first draft

• Did not match with the current practices• Did not include changes• Did not cover everything they do

• Surprisingly• There were no drawing controls• Multiple revisions were floating around• People were using redlines that were incorporated long time ago

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QUICK REVIEW• First and foremost

• We got an approval (blessing) from the CEO and other senior executives

• Quality starts from the top (and from the middle or bottom)• Formed a core team (cross functional)

• Standing meeting to monitor progress• Looked for Quality manual, procedure, work instructions, records

• We need for ISO 9000?• What we have?• Gap Analysis…

• Manager were assigned to write the procedures and work instructions for their respective areas• It was a disaster

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QUICK REVIEW• Why it was a disaster?

• They were very high level and most idealistic procedures you could imagine on the face of this earth

• Did not match with the current processes• Often Managers could not explain their own procedures

• So, I spoke with the CEO• Hired a writer• Met with each department supervisor and leads• Asked them to write down their processes in simple words and

sentences• Technical writer was asked to keep them to 6 grader English• Review with rest of the department employees

• Made a few changes – released them

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QUICK REVIEW• In less than a month

• We have had• Quality Manual• Procedures• Work Instructions• Record forms

• Since they were developed by the people on the production floor (or really carry out the work, training was just minimal)

• In three months we called the registrar for a full audit• With just over a month’s records

• We passed the audit (with a long list of minor findings)

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QUICK REVIEW• Lesson learned

• Review the requirements – what applies to you• Have a vision for the most perfect and idealistic goal (perfection)

• But at some point get out never ending discussion and planning mode• Start Taking action• Small increments (Kaizen approach) with a clear vision for perfection

one day• Try in small parts, see if it works

• If it does, expand it• If not, take a different approach

• Include people from all areas• Cross functional • Top to bottom• Get the fear out – let the people speak up their mind• Recognize for good idea – even your worst enemy

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Key Things to Remember about Kaizen• Quality starts from the top

• You need executive approval • However you can improve anything within your control –starting

point

• Always keep looking and analyzing how things can be improved• Short term (with current resources), Long Term (with some

significant resources requirements)• The way things are done today can be improved

• May be in overall picture this is not a top priority but do not let it go from your radar screen – balance out your resources (business decision)

• Low hanging fruits – require minor changes

• Justify in terms of $$$ (short and long term) - ROI

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Key Things to Remember about Kaizen• Impress your immediate boss

• Do not wait for instructions (take the lead in changing anything that is within your control for a good change)

• Your action should speak for itself

• Do not get dis-hearted• You may not get the right recognition• Someone else may take the credit for your work• If it is your idea and thought, someone will recognize your efforts

sooner or later – you can speak with passion and confidence to• Your management• Potential employer• Like I am standing in front of you

• You may agree or disagree, but that worked for me and therefore I am sharing with you

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Key Things to Remember about Kaizen• Include everyone

• Who are directly and indirectly related to that process• Top to bottom• Leave your ego and preconceived idea at the door

• Be a good listener and observer• Welcome thoughts and idea• Let other people feel (those who are shy) feel comfortable to share your

view in public or private• Give due credit

• Recognition is more valuable than monetary reward

• Learn how to run meetings• Forming, storming, norming and performing • Conflict resolution, how to discipline/limit distracting members

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Key Things to Remember about Kaizen• 5Ws and 1H• 3 Mu’s

• Muda, Mura, Muri,• The following three charts

• Roles and Responsibility in terms of resources• Management, middle management, Supervisor and Workers

• Innovation and Standardization with Kaizen approach

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Quick Review - 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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Quick Review - 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 Management

Inno

vatio

n

Inno

vatio

n Inno

vatio

n Kaizen

Kaizen

Kaizen

It lacks the Kaizen strategy go along with it.

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Quick Review - Kaizen versus Innovation• If standardization is just to maintain the status quo

(existing status of affairs)

Inno

vatio

n

Inno

vatio

n Inno

vatio

n Standard

Standard

Standard

Inno

vatio

n

Inno

vatio

n Inno

vatio

n

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

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ASQ Section 0701 Case Study • I shared quite a few case studies in my previous

presentations• They are real and no fabrications

• Except I did not mention company’s name• Used the different numbers to show the example

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MORE CASE STUDIESYou can try it – if applicable

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Kaizen Case Study 4(a) ASQ 0701• Having the meeting on 2nd Tuesday of the month

• Rain or Shine

• Is this a Kaizen approach• Yes• People can work around with their schedules

• Members and Leadership Committee members

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Kaizen Case Study 4 – Try at work• If you chair a meeting (or attending a meeting which keep

changing the day and date)1. Make it a standing meeting on one fixed day of the month e.g. 1st Friday of every month at 8:00 (or whatever the day and time

convenient for most members) You team member participation will go up

2. If member cannot participate he or she should delegate to someone who can represent him or her It will further improve team members participation

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Case Study – Single Piece Manufacturing• Ideally

• Single piece manufacturing has the maximum benefit when you start from one end and finished product (including packing and labeling) is done at the other end

• Other words ready to be shipped…

• But single piece manufacturing concept is• Wherever possible (Kaizen approach – small increments)

• Combine operations • Reduced excessive handling (and all Muda, Mura and Muri)

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Case Study – Single Piece Manufacturing – Video Clip

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Three Processes, Process 1 and 2 have In and Out. Process 3 finished product

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Case Study – Single Piece Manufacturing• Video Clip

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Kaizen Kaizen II

http://www.youtube.com/watch?v=JoLHKSE8sfU

Questions• vinaygoyal@sbcglobal.net• Presentation slides will be posted on section website

within 2-3 days• Do you want me to hold one more session in November

on Kaizen • Case studies• Examples

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KAIZEN : A Success Story Part 2 Bhavna Mantha ASQ Dinner Meeting, 12 Nov 2013

One Piece Flow and The Kanban System

‘Removal of waste’ suggests that there should be a continuous goal to reduce inventory

One-piece flow : optimum, reduces inventory to minimum Where one-piece flow is not possible Kanbans can be used to

pull the correct amount of ‘units’ at the right time

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Push and Pull System

Important Aspect: Right amount of inventory at all times. Push System: In the push system, goods are manufactured in anticipation of customer orders Pull System: A pull system triggers production to manufacture only what the customer needs, when they need it. Pull Systems/Kanban control the flow of resources by replacing only what has been consumed. “Kanban (literally signboard or billboard) is a scheduling system for lean and JIT production.”

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KANBAN Concept

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Empty

Refill

Kitchen Kanban

Office Kanban

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E-KANBAN in Manufacturing Electronic kanban : Signaling system that uses a mix of technology to trigger the movement of materials Differs from traditional kanban in that it uses technology to replace traditional elements such as kanban cards with barcodes and electronic messages

Reduced lead time from 1 week to 1 day Reduced inventory by 35% Lowered Total Cost

BINS with a Red Kanban Card

ERP System – e-kanban screen