1

2 Class Questions on Organizational Issues with Kaizen The underlying mission for any organization is to enable work to occur that satisfies the customer. KAIZEN is an approach that enables all aspects of any organization to continuously improve work to satisfy the customer. As leaders, how can you help involve the entire organization in KAIZEN? How should you support areas where work is done? How can you/management structure the plant/organization for executing and fostering KAIZEN? How can the organization best provide an environment for both personal/professional growth and organizational improvement?

3 TOP-DOWN ORGANIZATION BOTTOM UP ORGANIZATION Direction Setting Organization to Support Workforce Customer Satisfaction Customer Expectations

4 THE MERITS OF BOTTOM-UP IMPROVEMENT 4 KAIZEN starts with the recognition and acknowledgement of a problem. 4 Where no problem is perceived, there can be no improvement. 4 Problems are a mountain of treasures. 4 Suggestions for KAIZEN should be bottom- up…..workers closest to the problems are best able to recognize them. Studies have shown that only 3 problems out of 100 are known to managers two levels and higher up in an organization.

5 What Percent of Quality Problems are System Level – solvable only by Management? 4 What do you think?

6 THE MERITS OF BOTTOM-UP IMPROVEMENT Continued 4 People are not the problem (usually) 4 Blaming people does not solve your problem. 4 The answer is: To make people problem-solvers! PEOPLE AND PROBLEMS Break down departmental barriers to communication and process improvement. Welcome problems as opportunities for improvement….admit to the problems. “Go out and try new ways” … “Nothing is worse than doing nothing” …Make mistakes and learn… APPROACH

7 THE MERITS OF BOTTOM-UP IMPROVEMENT Continued 4 Each person in the organization is empowered to discover problems that need continuous process improvement. 4 It does not cost much money. 4 There is less resistance to process improvement. 4 The job becomes easier and work is done more productively. 4 Encourages the use of data especially when dealing with “The next process is the customer.” 4

8 WAYS TO FOSTER BOTTOM UP IMPROVEMENTS 4 Spend time helping people recognize that it is their job to improve and that they will be held accountable for it. 4 Give them time to work on process improvement. 4 Spend time developing mutual trust in the organization. 4 Line management must take risks and lead the process by recognizing good work and correcting mistakes. 4 Make sure the staff workforce does not think its work is above process improvement via hourly worker involvement.

9 TOP MANAGEMENT’S ROLE WITH KAIZEN 4 Foster KAIZEN as a corporate strategy. 4 Provide support/resources and direction 4 Establish and communicate policy and objectives 4 Foster visible involvement. 4 Build systems, procedures, and facilities 4 Create a cultural environment of openness and teamwork to cultivate KAIZEN.

10 TOP MANAGEMENT’S ROLE WITH KAIZEN Cont. 4 Introduce and use process-oriented criteria 4 Provide company-wide education and retraining programs to create an understanding and acceptance of KAIZEN…this is key. 4 Don’t expect major benefits to show up for 2-3 years…need ongoing commitment. 4

11 THE ROLE OF MIDDLE MANAGEMENT WITH KAIZEN 4 Deploy and implement KAIZEN in areas of functional capability 4 Establish, maintain, and continuously upgrade standards. 4 Make employees KAIZEN conscious 4 Assist employees in developing skills and tools for problem identification and problem solving. 4 Behave with actions that support KAIZEN concepts and philosophies.

12 NEW ROLES & RESPONSIBILITEIS FOR SUPERVISORS WITH KAIZEN 4 Use/practice KAIZEN in functional roles 4 Formulate implementation plans for KAIZEN and provide guidance to workers 4 Improve communication with workers and sustain high morale 4 Support and participate in small group activities 4 Introduce and maintain discipline to standards.

13 THE ROLES OF HOURLY WORKERS WITH KAIZEN 4 Engage in KAIZEN through small group (team) activities and by providing suggestions. 4 Practice discipline in the workshop. 4 Learn skills that increase proficiency in thinking about improvement, and in identifying and analyzing waste. 4 Look for ways to make the job easier and less tiresome. 4

14 THINGS TO DO TO BE RESENTED BY THE WORKFORCE 1. Use technical jargon exclusively. 2. Don’t listen to their opinion. 3. Discuss tools and methods only (implied “Don’t discuss their problems”). 4. Execute a plan even if they don’t understand what is going on. 5. Force them to do something they haven’t asked for. 6. Disregard existing technology and the systems being used in the workshop. 7. Disregard the human side of KAIZEN and stress only the technical side. 8. Stress only the advantages of KAIZEN goals and plans, instead of the process that has to be gone through. 9. Take credit for the results.

15 5 WORKPLACE PRINCIPLES 1. When an abnormality occurs, go to the workplace first. 2. Check the workplace (machine, material, failures, rejects, unsafe conditions, etc.). 3. Take temporary countermeasures…on the spot. 4. Find root causes (use data). 5. Standardize to prevent trouble from recurring.

16 KAIZEN REQUIRES A CULTURE 4 Where people are free to make and admit mistakes. 4 Where people work cross-functionally in a systematic and collaborative manner. 4 Where people think with an emphasis towards the process, not the result. 4 Where people are recognized and rewarded for process improvement and problem prevention. 4 Where people are given the resources (especially time) to work on process improvement. 4 Where team work, cooperation, and mutual respect are valued. 4 Where people are empowered to make decisions in their areas of responsibility—often through teams and consensus.

17 I am too busy to study it. It’s a good idea, but the timing is bad. Theory is different from practice. Isn’t there something else for you to do? I think it doesn’t match corporate policy. WET BLANKETS It isn’t our business. Let someone else think about it. Are you dissatisfied with your work? It’s not improvement, it’s common sense. I know the result, even if we don’t do it. I will not be held accountable for it. Can’t you think of a better idea? MORE WET BLANKETS

18 Class Exercise As a project leader or manager involved in process improvement, you may be asked to teach production personnel (high school education at best) about how to do basic problem solving. What specific teaching methods and strategies (not course agendas) would you use in order to maximize the amount of learning and applications of these tools by production personnel? Be specific.