Chapter 10Kaizen

Securing Your Tomorrow-Today

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Lean EnterpriseLean Enterprise

Six SigmaQuality

Six SigmaQuality

Workplacesafety, order,cleanliness

Workplacesafety, order,cleanliness

Flow and PullProduction

Flow and PullProduction

EmpoweredTeams

EmpoweredTeams

VisualManagement

VisualManagement

Pursuit ofPerfectionPursuit ofPerfection

The workplace issafe, orderly, and very clean

Products are built“Just In Time,”

to customer ratebased demand

Six Sigma Qualityis built into theproduct and the process

Member teamsare empowered

to make keydecisions

Visual Managementto track performance

and open the companyto all people

There is arelentless pursuit

of perfection

The Lean Enterprise Principles

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Pursuit of Perfection Supports the other Lean Enterprise

fundamentals Is a continual and constant search for ways

to do things better, quicker, faster, and easier

Is a way of life

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Pursuit of Perfection

The Most Important Aspect: It is an anti-waste mentality or mindset that

brings about a CONSTANT striving for improvement.

Perfection must be an ongoing goal even though it can never be fully attained!

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Pursuit of Perfection Ask key questions:

◦ Why do we need to improve?◦ What can we improve?◦ Where do we need to focus our improvements?◦ When are we going to complete the

improvements?◦ Who is going to participate in the improvement

effort?◦ How are we going to get it done?

Find ways to facilitate free flow of ideas:◦ The team members are the experts

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A Japanese word that means to “change for the good.”

Doing “little things” better everyday defines kaizen - slow, gradual, but constant improvement.

Continuous improvement in any area that will eliminate waste and improve customer satisfaction.

Often result in improvementsin the range of 5-20%

Kaizen

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A Japanese word that means to “radically change.”

Is about making fundamental and radical changes – fast, rapid, but constant improvement.

Often result in improvements in the range of 30-50% or more.

Both Kaizen and Kaikaku can be applied to activities other

than production.

Kaikaku

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A cross between Kaikaku and Kaizen is a Kaizen Blitz (or Kaizen Events)

Implies a radical improvement in a limited area, such as a production cell

Concentrates a team of people, from a few days to two weeks, focused on dramatic improvement in one area

Can accomplish:◦ Rapid improvement in the performance of a specific

production process or manufacturing cell. The target of kaizen is cost reduction through

the elimination of waste at all levels.

Kaizen Blitz

This results in local improvement – not system level

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Rule #1: Event based kaizens must be used only as part of an overall continuous improvement strategy. Kaizen events by themselves will not transform you into a world class manufacturer.

Rule #2: Kaizen events will make the production process or manufacturing cell more productive. Prepare a plan NOW for redeploying the members of your team who become available as a result of this initiative. Tell your team in advance what will happen.

Kaizen Rules

Waste Targets Are….

Anything that absorbs resources (manpower, equipment, time, floor space, etc.) without adding value to the product.Eight Types of Waste

Defects Overproduction Waiting Non-utilized resources Transportation Inventory Motion Extra Processing

Maximize Value Added ActivityMinimize Non-Value Added Activity

Our Objective:

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Rule #7: The keys to eliminating motion waste are:◦ Operators never have to turn around◦ Operators never have to search for anything◦ Operators never have to walk

Rule #8: To reduce the operator walking or manual times, concentrate on these improvement areas.◦ Transformation of material and parts with the cell◦ Loading and unloading of machines◦ The presentation of parts to the operator

Kaizen Rules

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Prior to Day 1◦ Create charter and team

Day 1 and 2◦ Mix between training and analysis of work area

performance and opportunities for improvement Day 3 through 5

◦ Rapid implementation to reduce waste◦ Use of the tools described up to this point

Day 5◦ Report out to top management◦ Celebration

Typical Agenda

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Phases of Team Evolution

4. Performing

Convene5. AdjourningPr

oduc

tivity

Productive

1. Forming

Inclusion

Testing

Quiet Polite Guarded Impersonal Business-like High Morale

Trust Flexible Supportive Confident Efficient High Morale

2. StormingCon

trol

Infighting

Conflict over control Confrontational Alienation Personal agendas Low morale

3. Norming

Cooperation

Organized

Establish procedures Develop team skills Confront issues Rebuilding morale

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Rule #3: Kaizen events require an investments by management in terms of people and material resources. If the event is performed in a production area, it will result in lost productivity. Management must understand and agree with this investment before the event can begin.

Rule #4: Many members of the event team should always be from the event area to be studied. These members provide “fresh eyes” and a different perspective for viewing the manufacturing process.

Kaizen Rules

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Rule #5: Kaizen events in production areas should include representatives from all production shifts in that area.

Rule #6: The basic nature of kaizen is to make improvements with what is available. It generally doesn’t cost money to do kaizen. If you must spend money, perform simulation using cardboard or wood.

Kaizen Rules

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1. Keep an open mind to change2. Maintain a positive attitude3. Create a blameless environment4. Encourage non-judgmental thinking5. Be aware of multiple alternatives6. Treat others as you want to be treated7. Respect and involve all team members8. One person, one voice9. Create a team environment10. No such thing as a dumb question11. Create a bias for action12. Creativity before capital13. Never leave in silent disagreement14. Have fun

Rules of Kaizen

We must use a mix of kaizen and kaikaku – What did your VSM tell you?

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Paradigm – a set of rules and regulations, either explicit or implicit, that:

Sets boundaries Defines a pattern or model Tells what to do to be successful within those

boundaries

Also…. Inhibits continuous improvement Causes resistance to change

Success is measured by being able to solve problems within rules.

Keep an Open Mind to Change

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“Everything that can be invented has been invented.”Charles H. Duell, Commissioner, U.S. Office of Patents, 1899

“The wireless music box has no imaginable commercial value. Who would pay for a message sent to nobody in particular?”

David Sarnoff’s associates, in response to investment in the radio, 1920’s

“Who the hell wants to hear actors talk?”Harry M. Warner, Warner Brothers, 1927

“I think there is a world market for maybe five computers.”Thomas Watson, CEO of IBM, 1943

“There is no reason for any individual to have a computer in their home.”

Ken Olsen, Pres, Chairman & Founder of Digital Equipment Corp., 1977

“640K ought to be enough for anybody.” -Bill Gates, 1981

The Past Imperfect – Paradigm Shifts

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Results are always historical◦ Yesterday◦ Last week◦ Last month

Focus on the PROCESS Improved RESULTS can only be obtained by

improving the PROCESS Process is NOW

Kaizen Process and Results

5. Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs.

- Deming 14 points

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If no problem is perceived, there can be no improvement

People are not problems, they are problem-solvers

Non-judgmental/Non-blaming Eliminates the search for who to blame Provides system improvement Allows “relentless root cause analysis” Increases trust Improves quality of communication Avoids “shoot the messenger” mentality Avoids crisis orientation

Problems are Opportunities

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Rule #9: Try to make all improvements within the event area. Avoid the tendency to blame suppliers for the event area’s problem

Kaizen Rules

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Motto: I do not accept defects I do not make defects I do not pass on defects

Source inspection – Operators must be given the means to perform inspection at the source, before they pass it along.

Poka-yoke must be considered - the removal of all potential causes of error either through design, process, or mistake proofing devices, to ensure consistent process results.

Create a Zero Tolerance Towards Defects

Raised material / lettering example

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Do not assume Analyze data Make decisions with data Take action based on data Check results

Each of the following is worth something – but of no real validity without DATA:◦ Opinions◦ Past experience◦ Sixth sense◦ Gut feeling◦ Spouse’s intuition

Speak with Data

"“In God we trust; all others must bring data.”

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The Seven Step Kaizen Process

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Create a Value Stream Map

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• Flow Map/Chart• Worksite Arrangement Diagram• Cycle Time Study• Other Data Collection Tools

• Methods Include:• Observation – Watch how the work is done• Hands-on-experience – Sample the work• Interviews – Ask questions to verify and clarify, get input from those who

do the work• Five Why’s – Ask “why” as many times as necessary to find root cause

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• Implementation Planning Worksheets• Process Flow Map/Chart• Worksite Arrangement Diagram• Cycle Time Sheet

Determine a process for monitoring resultsMonitor and evaluate results

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• Process Flow Map/Chart• Worksite Arrangement Diagram• Work Instructions• Standard Operating Procedures• Cycle Time

Revise ProceduresUpdate Training MaterialsTrain on the new procedures to ensure good results

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Organizational Assessment

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Lean Assessment Purpose

◦ Identifies potential opportunities for improvement at a high level

◦ Provides understanding of the process before change

Objective◦ A methodical evaluation that documents the

“Current State” of the business considering Lean deployment and what can be expected directionally in the future under certain assumptions

Organizational Assessment

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Preparation◦ Training for the auditor◦ Training for the areas to be audited◦ Secure templates for self-assessment

Get training Ask open ended questions Use silence Hire experienced staff Hire a consultant Use a rubric style assessment list

Conducting the Lean Assessment

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Lean Assessment Criteria We must bridge the gap from current reality

to perfection◦ Lean assessment criteria based on best practices

of other companies that are pursuing Lean Enterprise implementation

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Prepares summary and detailed reports of findings for: Specific areas for initial improvement, reasons, and

possible solutions Estimate amount of internal and external resources

needed High-level plan recommendations

Final Deliverables Report of findings Meeting with key stakeholders for review and discussion Re-cap of review meeting, assignments and deadlines

for implementation

Documentation

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Initially, less is more A minimally intrusive up-front assessment

that focuses on culture, skills, and change readiness

Get stakeholder buy-in for change Structure initial efforts to include

◦ Full-scale investigation◦ Benchmarking

Things Needed to Proceed

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A model and guideline to provide a framework for identifying and evaluating the standard for operational excellence.

The model and guidelines generally do not prescribe one single best method, system, or route to attaining operational excellence.

Principle-driven organizations are clearly viewed as the best paradigm for achieving operational excellence.

The Shingo Prize

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The Shingo Prize

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1. Respect every individual2. Lead with humility3. Seek perfection4. Assure quality at the source 5. Flow and pull value 6. Embrace scientific thinking   7. Focus on process   8. Think systemically   9. Create constancy of purpose   10. Create value for the customer

The Shingo Principles of Operational Excellence

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Lean assessments are highly recommended Follow a structured approach Leverage “experience” Document lessons learned Establishes a clear high-level strategic and

tactical plan

Summary

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Create flow Eliminate waste Create a sense of urgency Speak with data Have a bias for action Reduce variation Focus on the process Communicate, communicate, communicate

Conclusion

Now, let’s go to the Gemba……