Principle of ongoing improvement Kaizen Principle of ongoing improvement Masaki Imai “Kaizen: The Key to Japan's Competitive Success” So, this means in English “ continuous improvement” In Japanese: …”change for the better” Kaizen: By Indrani sen

Purpose Understand the concept of Kaizan Apply this technique to solve a real life problem From your work place or personal life Kaizen: By Indrani sen

Kaizan Define Kaizen Elaborate the Kaizan concept Describe Kaizan strategy Study Kaizan action plan Show application of Kaizan in real world Use the Kaizen table to solve a problem (from your workplace or personal life) Kaizen: By Indrani sen

Meaning of Kai-Zen In Japanese this is pronounced 'kai-zen'. The original kanji characters for this word are: ('kai') KAI means ‘continuous’ or ‘action to correct’ ('zen') ZEN means 'good' As I mentioned earlier: Kai means “continuous change” 'zen' to mean good, or for the better. Kaizen: By Indrani sen

About Kaizen This is a Japanese Management technique, focusing on improving business operations. The key aspect of KAIZEN is that it is an on-going, never-ending improvement process. The Kaizan way encourages small improvements day after day, continuously and gradually, rather than any radical changes. Kaizen strategy involves everyone in the organization – managers and other employees. Focuses on actual improvement and not static standards. Ongoing Process So changing for the better. Small Improvements Quality at source: So when u see a problem, stop and fix it. To eliminate product defects, they must be discovered and corrected as soon as possible. While kaizen (in Toyota) usually delivers small improvements. These small improvements accrue and generates large results. Small-scale improvements are easier and faster. The risks are low because they generally have limited effect. However, the accumulated effect  is often greater than a single large improvement. Producing things in large batches results in huge setup costs, high capital cost of high-speed dedicated machinery, larger inventories, extended lead times, and  larger defect costs. Because Toyota has found the way to make setups short and inexpensive, it became possible for them to economically produce a variety of things in small quantities Involvement for All People at all levels of an organization can participate in kaizen, from the CEO down to any staff. Suggestions for improvement can be made by an individual, suggestion system, small group, or large group. Everyone is responsible for continuous improvement. People are responsible for their own area cleanliness, maintenance, organization So the foundations for Kaizen are: teamwork, suggestions for improvement by involving the team, taking small steps thereby improving quality circles Kaizen: By Indrani sen

Kaizen: Eliminate Waste KAIZEN is a culture of sustained continuous improvement focusing on eliminating waste. Waste refers to: "activities that add cost but do not add value" in all systems and processes of an organization or workplace. Toyota’s Lean Training grew out of this concept. Fundamental principle of process improvement: Anythhing that does not add value should be eliminated. Japan has long been sensitive about waste, as the land and raw materials are scarce. Waste can be turned into profit if it is eliminated, and so everybody is encouraged to participate in improvement efforts. Kaizen: By Indrani sen

Kaizen: Eliminate Waste All non-value activity must be eliminated. These items refers to: Overproduction of goods not demanded by actual customers Defective products Unnecessary Motion Unnecessary Processing Unnecessary Transport Unsafe or unergonomic work conditions Missing or misinformation Underutilized human potential-skills, talents, & ideas Overproduction and Inventory, items not immediately needed Defective products requiering repair or scraping Motion unnecessary movement and energy used to perform tasks Process imposing inefficient and/or unnecessary tasks, fail to synchronize systems Idling; by excessive set-up or equipment breakdowns Transport, poor timing; too frequent or infrequent movement of goods and deliveries. Employing people for jobs that can be mechanized or assigned to less skilled people. Turning loss into profit by muda elimination is one of the easiest ways for a company to improve its operations. Kaizen: By Indrani sen

Kaizen Action Plan Conduct Gap Analysis Firstly review the current work standards to check the current performance, and than estimate how and how much performance can still be improved. Make Suggestion about Workflow Everybody, regardless of rank or position all employees are encouraged to make suggestions about improving workflow. Implement Action Plan of Kaizen Committee A KAIZEN committee then reviews suggestions and make recommendations to improve performance. Evaluate Performance Everyone is empowered to make a suggestion Ask the right questions, observe very carefully “what is happening”, and what should happen? Ask the “Why” questions To eliminate product defects, they must be discovered and corrected as soon as possible.  Since workers are at the best position to discover a defect and to immediately fix it, they are assigned this responsibility. If a defect cannot be readily fixed, any worker can halt the entire line by pulling a cord (called Jidoka). In some Canon plants, the foremen are told to set aside the half-hour as Kaizen time – time to do nothing but thinking improvement in the workshop. The foremen use this period to identify problems and work on Kaizen programs. Factories are advised not to hold meetings during this 30-minute period, and foremen should not even answer the telephone calls. This technique is called the ‘Canons’ suggestion system Kaizen: By Indrani sen

Kaizen Process GAP ANALYSIS Identify current problem Make Recommendations Take Action Evaluate Ideal situation How do u identify the current problem? Observe, ask questions “why” and get to the root of the problem And what is happening? What should happen? ‘Waste’ refers to the process or resource that is causing it. Make Suggestions/Recommendations based on your observations. In some Canon plants, the foremen are told to set aside the half-hour as Kaizen time – time to do nothing but thinking improvement in the workshop. The foremen use this period to identify problems and work on Kaizen programs. Factories are advised not to hold meetings during this 30-minute period, and foremen should not even answer the telephone then... More If you are in a team, everyone is empowered to observe and make suggestions. All voices carry equal weight. If there is performance improvement, standardize the new procedure. Go back to ‘gap analysis’ to make further improvements. Standardize new improved operations Identify the ‘waste’ (resource and process) Kaizen: By Indrani sen

Improvements in Business Processes Improve Employee’s Skill Sets Education & Training Improve Work Environment Upgrade computer, software, equipments Improve Procedures Quality at Source.  JITS, Small-Lot production. Improve skills Upgrade Knowledge, provide training or higher education Improve Procedures Small-Lot Production: Producing things in large batches results in huge setup costs, high capital cost of high-speed dedicated machinery, larger inventories, extended lead times, and  larger defect costs. Because Toyota has found the way to make setups short and inexpensive, it became possible for them to economically produce a variety of things in small quantities.  Quality at the Source: Since workers are at the best position to discover a defect and to immediately fix it, they are assigned this responsibility. If a defect cannot be readily fixed, any worker can halt the entire line by pulling a cord Toyota developed the pull production method wherein the quantity of work performed at each stage of the process is dictated solely by demand for materials from the immediate next stage. The Kamban scheme coordinates the flow of small containers of materials between stages. This is where the term Just-in-Time (JIT) originated. Kaizen: By Indrani sen

Kaizen’s Applicability Business Applications Personal Development Kaizen: By Indrani sen

Toyota’s Production System Toyota’s Team Empowerment Concept Every Toyota team member is empowered to make suggestions about their work environment. JIT (Just in Time) The quantity of work performed at each stage of the process is dictated solely by demand for materials from the immediate next stage. The concept of JIT originated here. Kaizen: By Indrani sen

Canon suggestion System In some Canon plants, the employees are told to set aside the half-hour as Kaizen time This time is used to identify problems and work on Kaizen programs. Employees are always encouraged to give suggestions for improvement. Management also gives due recognition to employee's efforts for improvement. An important aspect of the suggestion system is that each suggestion, once implemented, And if suggestion leads to an upgraded standard, employees are rewarded Toyota states: "...based on the concept of continuous improvement, or Kaizen, every Toyota team member is empowered with the ability to improve their work environment. This includes everything from quality and safety to the environment and productivity. Improvements and suggestions by team members are the cornerstone of Toyota's success."... Kaizen: By Indrani sen

Kaizen’s Applicability in Healthcare The Lean Training (adopted Toyota Inc), from programs in the Healthcare field have demonstrated that: 60% reductions in patient wait times 50% productivity gains 90% cycle time reductions Kaizen: By Indrani sen

Applications in Health Care Industry Operation Name Problem Actions Taken Result Restructuring Stocking Room Inefficiencies in collecting supplies from stocking room Remove unused equipment Standardize layout, labeled, set par levels and reviewed procedure Increased nurse satisfaction  Reduced trips to supply room Slow Patient Departure Process Lack of understanding of symbols on MedHost dashboard Create "cheat-sheet" for symbols and post at every computer 71 % reduction of time to complete patient departure process Problem: -too much time to find something -nothing could be found Solution: Getting rid of the clutter Ask the right questions Sort :Unneeded items are identified and removed. Only needed parts, tools, & instructions remain. Set in order:Everything has a place; everything is in its place. Visual Scoreboard and other visual controls. Standardize : Routine cleaning becomes a way of life. Preventative maintenance is routinely performed 5S – to organize the workplace:5S is a routine way of life. Root causes are routinely identified and dealt with. 5S is a routine way of life. Sustain Immediate feedback: Improved communication Kaizen: By Indrani sen

Kaizen & Personal Development Discard what is unnecessary: This concept may be used in home and family life to mean a reduction of clutter, literally as well as emotionally. Put everything in order: When organizing make everything accessible. Elimination of waste: Remove negative influences and energy. (those factors that do not add value to our life) Let’s say u are organizing ur kitchen cabinet….keep things which u use the most closeby.for eg. keep all the things that u need to make coffee together. Kaizen: By Indrani sen

Summary On-going improvement process. Small, gradual and continuously improvements day after day, rather than any radical changes. All non-value items (waste) must be removed from an organization. Makes use of sustainable use of resources. Total employee involvement and empowerment. Kaizen strategy calls for never-ending efforts for improvement involving everyone in the organization. Kaizen: By Indrani sen

Your Assignment Identify a problem from your professional or personal life. Describe the current problem. What is the ideal situation? Identify the “Waste”. What steps (skill set, tools, process) will you take to solve this problem? Please use the chart provided to complete this project. Ask “Why?” until root cause is uncovered Kaizen: By Indrani sen

Kaizen Table Table Name: Define Problem Current Problem Ideal Situation Identify Waste Take Action Result Kaizen: By Indrani sen

Reference Kaizen: The Key to Japan’s Competitive Success By Masaki Imai Office Kaizen: Transforming Office Operations into a Strategic Competitive Advantage By William Lareau The Kaizan Pocket Handbook: By Kenneth W. Daily Lean Manufacturing that Works: Powerful Tools for Dramatically Reducing Waste & Maximizing Profts: By Bill Carreira Kaizen: By Indrani sen