The Lean Enterprise All About Kaizen Lean Foundations Continuous Improvement Training

Another methodology: Kaizen  Within the Continuous Improvement tools arena, perhaps none is more critical than Kaizen events. While other lean tools may stand alone, Kaizens seek to change culture and processes through the utilization of many of the lean enterprise principles  Kaizens seek small daily improvements resulting in large yearly savings  Compared to a large-scale DMAIC project, Kaizens focus on short-term “blitzes” to make immediate impact and change (change for the better)  The process of leading a Kaizen however, follows the DMAIC format  Within the Continuous Improvement tools arena, perhaps none is more critical than Kaizen events. While other lean tools may stand alone, Kaizens seek to change culture and processes through the utilization of many of the lean enterprise principles  Kaizens seek small daily improvements resulting in large yearly savings  Compared to a large-scale DMAIC project, Kaizens focus on short-term “blitzes” to make immediate impact and change (change for the better)  The process of leading a Kaizen however, follows the DMAIC format

Learning Objective  This section seeks to standardize the process of Kaizens in an attempt to provide useful tools allowing ‘first-time’ facilitators to ‘hit the ground running’ with a project of their own. One important concept is to start small and tackle the more complex problems at a later date - once momentum is built and the Kaizen process has been understood  Some of the tools include a Kaizen Schedule, Kaizen Area Improvement Sheet, 7W and 5S forms, Area Action Form, Prioritization Matrix, and a Problem Record Sheet (These are embedded in the presentation and located in forms section …)  This section seeks to standardize the process of Kaizens in an attempt to provide useful tools allowing ‘first-time’ facilitators to ‘hit the ground running’ with a project of their own. One important concept is to start small and tackle the more complex problems at a later date - once momentum is built and the Kaizen process has been understood  Some of the tools include a Kaizen Schedule, Kaizen Area Improvement Sheet, 7W and 5S forms, Area Action Form, Prioritization Matrix, and a Problem Record Sheet (These are embedded in the presentation and located in forms section …)

OverviewOverview  Kaizen is one of the critical tools within a Continuous Improvement Process (CIP)  Kaizen is one of the critical tools within a Continuous Improvement Process (CIP) Mistake Proofing Set-up Reduction Visual Management Cellular Layout Kanban TPM Standardized Operations Problem Solving Kaizen events VSM 5S

OverviewOverview  What is Kaizen ? (Ky-Zen) “Continual Improvement” Kai = Change Zen = Good (for the Better) The Basic Philosophy Is to Involve All Employees in Small, Daily Improvements within their Work Areas.

OverviewOverview  Benefits of Small Daily Improvements can Add Up 20% Improvement (One Time) 20% (One Time) 1/10 of 1% (Every Day) 1/10 x 250 Workdays 25% Improvement Per Year

DMAIC and PDCA Identify Waste Collect Data Identify Desired Result Find a Solution Standardize (ROLL-OUT SOLUTION) Prevent Recurrence Mistake-proof Evaluate Implement Solution (PILOT first) Achieve desired result ? Act Do Plan Check Did not achieve desired result FIRST - Standardize, Do, Check, Act (Ensure process is stable) THEN – Plan (for more improvement), Do, Check, Act D M A I C

 What is a Kaizen event?  A Kaizen event is a planned event (2 - 5 days) of intense improvement activities directed at specific areas of the business toward a larger goal  Kaizen events are essentially narrow-focused, short-term DMAIC projects. These can ALSO be done as part of any Lean, BB or GB project  A Kaizen event is a cycle of improvement  How do I do a Kaizen event ?  You do a Kaizen the same way as a DMAIC project and using PDCA as your guide  What is a Kaizen event?  A Kaizen event is a planned event (2 - 5 days) of intense improvement activities directed at specific areas of the business toward a larger goal  Kaizen events are essentially narrow-focused, short-term DMAIC projects. These can ALSO be done as part of any Lean, BB or GB project  A Kaizen event is a cycle of improvement  How do I do a Kaizen event ?  You do a Kaizen the same way as a DMAIC project and using PDCA as your guideOverviewOverview

Cycle of ‘Continual’ Improvement Kaizens follow a continuing cycle of improvement S = Study the change, assure it is stable – then, improve again!

OverviewOverview Kaizen concentrates on improving several aspects of the business: – Kaizen concentrates on improving several aspects of the business:  Safety  Quality  Speed How? Value to Customer Waste (Muda) Elimination Working to Takt Time TPM 5S 1-piece Flow Pull System

Benefits of a Kaizen  Teamwork  Everyone is able to participate and make improvements  No one individual, but a team, make the improvements  Communication  Improved relations between associates and management  Education  Improved problem solving  The more you teach someone to fish the more than can feed themselves  Teamwork  Everyone is able to participate and make improvements  No one individual, but a team, make the improvements  Communication  Improved relations between associates and management  Education  Improved problem solving  The more you teach someone to fish the more than can feed themselves

 Awareness  Understanding of broad issues and objectives of the organization as a whole  Better understanding of Continuous Improvement and the challenges involved with Change  Confidence  Stronger feelings of self-worth  Empowerment  Increased control over the job and work environment which fosters ownership and commitment to the change process All employees now feel they have a voice in the process!  Awareness  Understanding of broad issues and objectives of the organization as a whole  Better understanding of Continuous Improvement and the challenges involved with Change  Confidence  Stronger feelings of self-worth  Empowerment  Increased control over the job and work environment which fosters ownership and commitment to the change process All employees now feel they have a voice in the process! Benefits of a Kaizen

Planning requires good Project Management Planning requires good Project Management Define (Plan) Measure (Do) Analyze (Check) Improve & Control (Act)

How is a Kaizen Done? (With Good planning!)  Groundwork Period: (D-Phase/Plan)

The Kaizen Groundwork Period The Kaizen Groundwork Period  Determining Areas of Improvement  Document current state (performance)  Determining Areas of Improvement  Document current state (performance)

Kaizen Preliminary Day  Preliminary Day: (D-Phase/Plan)

7W Form

6S Form (Embedded below)  Your Company

Kaizen Day 1  Day 1: M-Phase/Do

Kaizen Day 1  Identify and Track Improvement Actions

Kaizen Day 1  Prioritize Actions: (Use Project Prioritization Matrix) High Priority Low Cost to Implement Work Methods (Man) Low PriorityHigh Cost to Implement Machine Methods Materials

Kaizen Day 1  Suggestions:  Take pictures and document the ‘BEFORE’ condition (setup) !!  You may also list these on a ‘Problem Record Sheet’  Suggestions:  Take pictures and document the ‘BEFORE’ condition (setup) !!  You may also list these on a ‘Problem Record Sheet’

Kaizen Day 2  Day 2: Analyze Phase/ Check  Test/ Pilot/ Verify Solutions  Day 2: Analyze Phase/ Check  Test/ Pilot/ Verify Solutions

Kaizen Day 3  Day 3: Improve & Control Phase (Act)  Complete Final Report-out to Management and Sponsors  Day 3: Improve & Control Phase (Act)  Complete Final Report-out to Management and Sponsors

Kaizen Best Practices  No rank on team, each person gets one vote (similar to brainstorming techniques)  Be creative, practical, and open minded to other ideas (“Think outside-of-the-box” and break Paradigms)  Don’t blame others and ALL questions are good questions  Accomplish as much as you can during the Kaizen  Document results with pictures for presentation to show verification  HAVE FUN !! (This is the time to work on culture change !)  No rank on team, each person gets one vote (similar to brainstorming techniques)  Be creative, practical, and open minded to other ideas (“Think outside-of-the-box” and break Paradigms)  Don’t blame others and ALL questions are good questions  Accomplish as much as you can during the Kaizen  Document results with pictures for presentation to show verification  HAVE FUN !! (This is the time to work on culture change !)

Information to Review at Initial Roll-Out Meeting  Overview of Process  Key Factors for Success:  Composition of team  Team member background  Management Commitment  Up-front agreement and understanding  Employees are the greatest resource -  give them the tools, training, & support to do a great job  Overview of Process  Key Factors for Success:  Composition of team  Team member background  Management Commitment  Up-front agreement and understanding  Employees are the greatest resource -  give them the tools, training, & support to do a great job

Information to Review at Initial Meeting

Workshop Fundamentals Stakeholder Analysis  Composition of Team  Involvement of All People Affected by Changes  Support and Commitment of Top Management  Upfront Agreement and Understanding of Workshop Requirements  Composition of Team  Involvement of All People Affected by Changes  Support and Commitment of Top Management  Upfront Agreement and Understanding of Workshop Requirements

Team Members  Representatives from these areas:  Operators from area (2 from each shift)  Technical Resources  Industrial, Process, and Design Engineers  Safety  Maintenance  Management (middle to upper levels)  Manufacturing Supervision  Optional Representatives from Production Control, Quality, Materials Management, Union  Representatives from these areas:  Operators from area (2 from each shift)  Technical Resources  Industrial, Process, and Design Engineers  Safety  Maintenance  Management (middle to upper levels)  Manufacturing Supervision  Optional Representatives from Production Control, Quality, Materials Management, Union

Desired Background of Team Members  Knowledge & Experience of the Process Being Studied  Team Player  Willing to Change  Positive Mental Attitude  Innovative and Creative  Able to Think Beyond the Current Way of Doing Things  Recognize & Accept that the Workshop May Involve Long Hours  Knowledge & Experience of the Process Being Studied  Team Player  Willing to Change  Positive Mental Attitude  Innovative and Creative  Able to Think Beyond the Current Way of Doing Things  Recognize & Accept that the Workshop May Involve Long Hours

Management Support & Commitment Required  Clear Empowerment to Team Members to Make Change  Presence of Top Leadership at Kick-Off & Wrap- Up Meetings  Demonstrate Support by "Dropping In" at Various Times During the Workshop  Expectation of Workshop Outcome Conveyed Clearly to Team.  "Champion" Identified to Support the Process and Deal with Roadblocks  Provide Recognition & Feedback  Clear Empowerment to Team Members to Make Change  Presence of Top Leadership at Kick-Off & Wrap- Up Meetings  Demonstrate Support by "Dropping In" at Various Times During the Workshop  Expectation of Workshop Outcome Conveyed Clearly to Team.  "Champion" Identified to Support the Process and Deal with Roadblocks  Provide Recognition & Feedback

Managerial Responsibilities and Support  Commitment to Support Action Plans that Deal with Productivity Issues Such as -  Cross Classification  Multi-Function Operators  Manpower Reductions  Work Element Changes  Standardized Operations  Team Empowerment to Use Other Areas as a Resource to Address Issues Impacting Operations with Waste.  Support to Implement the Ideas or Action Plans that can be Accomplished During the Workshop Period  Commitment to Support Action Plans that Deal with Productivity Issues Such as -  Cross Classification  Multi-Function Operators  Manpower Reductions  Work Element Changes  Standardized Operations  Team Empowerment to Use Other Areas as a Resource to Address Issues Impacting Operations with Waste.  Support to Implement the Ideas or Action Plans that can be Accomplished During the Workshop Period

 Review with Workshop Team Members and Worksite Personnel Prior to Workshop Beginning  Commitment to People Displaced  Company Expectations  Support for Making Change  Company and Process Competitive Position  Workshop Agenda and Scope  Ongoing Activities  Provide Information Regarding Issues Such as Safety, Quality, Productivity, Delivery, Cost Drivers and Schedule Performance  Review with Workshop Team Members and Worksite Personnel Prior to Workshop Beginning  Commitment to People Displaced  Company Expectations  Support for Making Change  Company and Process Competitive Position  Workshop Agenda and Scope  Ongoing Activities  Provide Information Regarding Issues Such as Safety, Quality, Productivity, Delivery, Cost Drivers and Schedule Performance Managerial Responsibilities and Support

 Recommendation for Workshop Focus (e.g. Current Problem Area) or Concurrence with Workshop Facilitator Suggestion  Understanding that Workshop Facilitators will Push Group to Reach for Solutions to the Opportunities Found, Potentially Impacting Sensitive Issues  Providing the List of Team Members within Sufficient Time for Workshop Facilitators to Review and Adjust if Necessary to Achieve the Desired Composition and Background  Reviewing "Kaizen Activity Contract" and Having all Aspects Completed Prior to Workshop Facilitator's Arrival  Recommendation for Workshop Focus (e.g. Current Problem Area) or Concurrence with Workshop Facilitator Suggestion  Understanding that Workshop Facilitators will Push Group to Reach for Solutions to the Opportunities Found, Potentially Impacting Sensitive Issues  Providing the List of Team Members within Sufficient Time for Workshop Facilitators to Review and Adjust if Necessary to Achieve the Desired Composition and Background  Reviewing "Kaizen Activity Contract" and Having all Aspects Completed Prior to Workshop Facilitator's Arrival Managerial Responsibilities and Support

During The Workshop  The Involvement of the Targeted Area Team Members (Operators, Technical Support, Supervision, Maintenance etc.) is Critical to the Success of the Workshop. Let Them Know how Important Their Input and Support are to you.  Top Management Support of Process Must Be Displayed  Team Member Reviews are Necessary Before Changes to Targeted Area are Made  Establish Target Dates for Follow-Up  The Involvement of the Targeted Area Team Members (Operators, Technical Support, Supervision, Maintenance etc.) is Critical to the Success of the Workshop. Let Them Know how Important Their Input and Support are to you.  Top Management Support of Process Must Be Displayed  Team Member Reviews are Necessary Before Changes to Targeted Area are Made  Establish Target Dates for Follow-Up

Utilize a Kaizen Checklist

Kaizen Workshop - Best Practices  Distribute all printed materials for learners  Apply visual controls to model process, use workplace organization  Set Target Floor Area Facilitator materials by exit for them to carry out  Set up message board, beeper check table, flip charts  Distribute all printed materials for learners  Apply visual controls to model process, use workplace organization  Set Target Floor Area Facilitator materials by exit for them to carry out  Set up message board, beeper check table, flip charts

 Complete Action Plan Items From Workshop  Prepare a Plan to Implement Workshop Concepts Throughout Facility. Continue Implementing!  Follow-Up and Review Status / Progress on Action Plan Items. Determine New Action Plans  Complete Action Plan Items From Workshop  Prepare a Plan to Implement Workshop Concepts Throughout Facility. Continue Implementing!  Follow-Up and Review Status / Progress on Action Plan Items. Determine New Action Plans Kaizen Workshop - Best Practices

 Discuss the Purpose of the Workshop  Conduct Hear, See, Do Sessions  Close the Workshop  Finalize Commitment to Workshop Results  Introduce the Follow-Up Plan  Review Impact to other Standardized Processes  Report Cost Savings  Discuss Workshop Continuation for Visiting Guests  Break Down Main Classroom/ Meeting room  Discuss the Purpose of the Workshop  Conduct Hear, See, Do Sessions  Close the Workshop  Finalize Commitment to Workshop Results  Introduce the Follow-Up Plan  Review Impact to other Standardized Processes  Report Cost Savings  Discuss Workshop Continuation for Visiting Guests  Break Down Main Classroom/ Meeting room Kaizen Workshop - Best Practices

 Complete the Contract  Complete 30/60/90 day ‘Results’ report  Review New Initiatives  Re-assess Customer Needs  Monitor Changes to Sponsor Approval  Update Cost Savings Progress  Complete the Monthly Reporting Form  Complete the Contract  Complete 30/60/90 day ‘Results’ report  Review New Initiatives  Re-assess Customer Needs  Monitor Changes to Sponsor Approval  Update Cost Savings Progress  Complete the Monthly Reporting Form Kaizen Workshop - Best Practices

The Lean Enterprise All About Kaizen Lean Foundations Continuous Improvement Training