KAIZEN® Institute Ｓｗｅｄｅｎ Ｃｏｎｇｒｅｓｓ Ｏｃｔｏｂｅｒ ２００９ Ｍａｓａａｋｉ Ｉｍａｉ Ｓｗｅｄｅｎ　Ｃｏｎｇｒｅｓｓ Ｏｃｔｏｂｅｒ　２００９ Ｍａｓａａｋｉ　Ｉｍａｉ Copyright© 1985-2006 KAIZEN Institute, Ltd. All rights reserved. KAIZEN® and GEMBAKAIZEN® are registered trademarks of KAIZEN® Institute, Ltd.

Gemba KAIZEN How to do KAIZEN KAIZEN What is KAIZEN spirit? KAIZEN FSL The three KAIZEN Books Gemba KAIZEN How to do KAIZEN KAIZEN What is KAIZEN spirit? KAIZEN FSL KAIZEN as strategy

KAIZEN® (Original Definition) KAIZEN® = Continual Improvement Change ZEN Good (for the better) KAIZEN® = Continual Improvement

KAIZEN® (new Definition) - Everyday improvement - Everybody improvement - Everywhere improvement - From small incremental improvement to dramatic strategic improvement

Improvement Maintenance What is Management? Top- management Improvement Middle management Maintenance Employees

Innovation KAIZEN® Maintenance What is Management? Top- management Innovation Middle management KAIZEN® Supervisors Maintenance Employees

Organisation for KAIZEN® Gemba Customer Expectations Customer Satisfaction Organization to support

The 5 Gemba Principles 1. When an abnormality occurs, go to Gemba first 2. Check with Gembutsu (machine, material, failures, rejects, unsafe conditions etc.) 3. Take temporary countermeasures on the spot 4. Remove root cause 5. Standardize to prevent trouble

House of Gemba Management Profit management Workers’ operations Information Equipment Products & materials Q C D Quality & safety Cost Logistic Standardization 5S (Good housekeeping) Team-work self-discipline Morale enhancement QC circles Suggestions Muda Elimination

7 Types of Muda 1. Muda of over-production 2. Muda of waiting 3. Muda of transport 4. Muda of processing 5. Muda of inventory 6. Muda of motion 7. Muda of repair/rejects

Everything in Gemba deteriorates if left alone. That is the reason why Gemba needs to be sustained and improved.

Five S‘s Practical means to realize a shortest flow and synchronization between processes. If 5S’s are not contributing to the above objectives, it benefits are not fully gained.

Make Eye contact and Smile Greet and welcome Each and Every Guests Disneyland Behavioral standards Make Eye contact and Smile Greet and welcome Each and Every Guests Seek out Guest Contact Provide Immediate Service Recovery Display appropriate Body Language Preserve the “Magical” Guest Experience Thank Each and Every Guest

４ Pillars of World Class Management TQM TPM TFM TSM Total Quality Management Total Productive Maintenance Just In Time Total Service Management Quality cost Losses Flow Customer satisfaction

KAIZEN® Road Map to world class (1) JIT Cost and delivery Elimination of all types of MUDA TPM Quality of Equipment TQM Quality of Product, Service, Systems and Work

KAIZEN® Road Map to world class (2) Integration of JIT and IT World class Electronic KANBAN Order entry system / Producing as many as need in the same sequence Upstream Managem./ involve R&D and engineering Supplier management / Supplier involvement in JIT / KAIZEN Leveling / Adding flexibility to Production Scheduling JIT Pull system / Allowing no advance Production TAKT Time / Producing only what customers ordered TPM Flow Production / Lead Time Reduction (MUDA of Conveyance, inventory, excess manpower) Autonomous maintenance TQM 5S Phase 0 1 2 3

KAIZEN® Road Map to world class (3) Integration of JIT and IT World class Electronic KANBAN Order entry system - Quick delivery - Menu - Large orders Upstream Managem./ involve R&D and engineering Supplier management - Extending JIT / KAIZEN Leveling - Small lot production - Lead time prod. - Layout design JIT Pull system - Kanban - Mitsusumashi - Store - Reserved seat TAKT Time Production - Standard work sheet - Standard work combination sheet TPM Flow Production - One Piece Flow - Low Cost Autom. - U-shaped cell, AGV - Jidohka - Poka Yoke - Dedicated line - Set up KAIZEN (SMED) Autonomous maintenance - Cleaning - PLS - Cleaning/Checking Standards, Inspection - Auton. Process-Inspec. - Standardization - Complete Self-management TQM 5S - Seiri - Seiton - Seiso - Seiketsu - Shitsuke

Batch JIT Batch Production vs. JIT Production (1) No takt time Work to takt time Large inventory Small inventory (eventually one-piece) Isolated islands Flow production Push scheduling Pull scheduling No-standard inventory Standard inventory Larger, faster and special equipment Even paced equipment (Takt time synchronised)

Batch JIT Batch Production vs. JIT Production (2) Less frequent set-up changes More frequent set-up changes One person per machine One person for many machines Single skill operator Multiple skill operator Sitting work Standing and walking work Advance production allowed Advance production not allowed Quality control grouping, Sampling inspection All number inspection

When forecast is discarded “We have a more efficient operation and a cost structure that is roughly half that of other companies in our industry” “We don’t rely on forecasts” Michael Dell

Two types of production systems Traditional Mass Production Lean Production Starts from forecast Starts from customer orders Builds inventories Does not allow inventories Production Inventory Customer Production Customer Forecast

- The learning organization - Respect for people The Toyota Way 1 - The learning organization - Respect for people - Education & training - Challenging spirit - Challenging management (Oh, NO! - System) - KAIZEN, Toyota’s DNA

- Long term perspective - Genchi (Gemba) Gembutsu - Do it right away The Toyota Way 2 - Team work - Quality First - Long term perspective - Genchi (Gemba) Gembutsu - Do it right away - Muda elimination

Advantages of shortening the flow Improve quality Shorten lead time and realize prompt delivery Reduce inventory and stagnation Use minimum resources Simplify management (Less managerial and administrative intervention) Realize minimum cost and maximum profit

When the Flow is shortened Quality automatically improves Delivery automatically improves Cost automatically goes down and brings Big Profit!

Conditions for minimizing the flow Standardization 5S Visual Management MUDA Elimination Reorganizing Management Structure Building KAIZEN® Culture

Christopher Columbus´ School of Management When he set out, he didn’t know where he was going When he got there, he didn’t know where he was When he returned, he didn’t know where he had been He did it all with borrowed capital

Man & Ape

The three Flows Material Flow Information Flow Cash Flow $$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$

3 Conditions to Create a Pull System Flow Synchronization Leveling

Who manages the Flow? …Let the flow manage the processes, and not let management manage the flow. (Taiichi Ohno)

What is your current status? FSL Checklist ● Is tact time employed as a basis of production? ● Is standardized work employed? ● Are all processes physically and logistically connected ? ● Is one-piece flow practiced? ● What is the current level of Five S?

Q1 The FSL Checklist Logistics People Quality Equipment Management OEE Value Stream Logistics Qualification People Stabilized Q1 Quality Processes OEE Improvement Equipment Leadership Performance Management

Examples of logistic checkpoints Logistic checkpoints Tact time Five S Three logistic principles One piece flow Production control board Elimination of Muda. Muri and Mura Logistic checkpoints No isolated islands No conveyers Standard work Separation between man and machine Visual management Kanban Standardization

Tools come first and problems second? Tools & problems Tools come first and problems second? or Problems come first and tools second?

LEARNING BY DOING

Proprietary technology vs managerial Technology Common Misconceptions by Management　(1) Proprietary technology vs managerial Technology Set policy and results will follow Train employees and Gemba improves Rely on sophisticated tools instead of common sense Believes Gemba will ask “What is in it for me?”

Quality is quality manager’s job Common Misconceptions by Management　(2) Quality is quality manager’s job Efficiency is industrial engineer’s job Cost cutting, not cost management KAIZEN without focus and targets Do not go to gemba

Innovation versus Kaizen The West versus Japan Innovation versus Kaizen Kaizen Innovation The West Japan