Kaizen Basics Quality Engineering and Quality Management 1 © University of Wisconsin-Madison

2 KAIZEN DEFINITION: KAIZEN is a management philosophy and strategy for running a company. It involves gradual, unending improvement, doing little things better, continuously setting and reaching goals, and thereby establishing ever-higher standards.

3 KAIZEN CONTINUOUS PROCESS Never get there, only get better (improve) relative to the past. EXAMPLE Learning is a continuous process of gaining knowledge, insight, understanding, and wisdom. Education is one strategy to foster learning.

4 KAIZEN KAIZEN solves problems by establishing a corporate culture in which everyone can freely admit problems and work together to prevent their recurrence. KAIZEN is also a customer-driven strategy for continuous improvement in the processes that affect costs, quality, scheduling, and delivery.

5 KAIZEN KAIZEN is a Way to Improve ALL Aspects of an Organization QRM--KAIZEN of Material Flow & Lead-time TPM--KAIZEN of Physical Environment TQC--KAIZEN of Support Systems KAIZEN is the overriding concept of good management. KAIZEN CQPI* *Continuous Quality and Process Improvement

6 What does KAIZEN Mean? KAI – to break apart or disassemble ZEN – to feverously improve Must do the Kai first!

7 KAIZEN BLITZ IS: A focused team effort to rapidly compress time, thus eliminating or greatly reducing waste to increase customer satisfaction. Often done in 3 to 5 days

8 KEY ELEMENTS OF KAIZEN TEAM WORK – Use a people-focused, not technology-focused approach to achieve competitiveness – Emphasize teams to gain collective knowledge and energies – Foster cooperation, mutual respect, and common goals

9 KEY ELEMENTS OF KAIZEN COMMUNICATION – Involve people in solutions – Create and foster a culture where people are free to make and admit mistakes – Listen first, speak second – Foster non-blaming/non- judgmental views

10 KEY ELEMENTS OF KAIZEN ELIMINATION OF WASTE – Identify and eliminate anything that doesn’t add “value” to the product for the “customer” – Practice “process oriented thinking”

11 KEY ELEMENTS OF KAIZEN CONTINUOUS “SMALL STEPS” – We will satisfy our customers by improving our processes continually – Take small steps…learn…improve…but do it!

12 WHY IS CHANGE NECESSARY? Customer requirements are continuously increasing. Rapid growth in new equipment and expensive technologies is often limited and constrained in terms of effectiveness.

13 WHY IS CHANGE NECESSARY? Organizations are often plagued by established levels/practices of waste. Competition is involved in on-going improvement. Unless a company changes and improves dramatically, the competition will catch and surpass it. “Improve or Perish”

14 WHY IS CHANGE NECESSARY A world-class company needs to implement new policies and practices that foster gradual, incremental, unending, and continuous improvement in its “processes.” Use a team/group approach to continuously identify and implement improvements in all processes - both shop floor and business practices.

15 WHY IS CHANGE NECESSARY? Reorganize and manage all operations as “processes,” and measure the process improvement. Empower the workforce, and provide people with the knowledge, skills, and resources needed to achieve KAIZEN as a way of life.

16 MANAGING CHANGE “Our job is to manage change. If we fail, we must change management.” Thus companies need to manage change involving continuous improvement in its processes and practices.

17 TYPES OF CHANGE 1.Abrupt Change: Innovation 2.Gradual Change: KAIZEN

18 TYPES OF CHANGE KAIZEN Small Steps Many Involved Conventional Know-How Requires Efforts Process-Oriented Slow-Growth Economy People INNOVATION Big Steps Few Involved Technological Breakthrough Investment Result-Oriented Fast-Growth Economy Technology

19 ROLES AND TYPES OF CHANGE Top Mgmt. Middle Mgmt. Supervisors Workers Ideal Job Function Situation Innovation KAIZEN Maintenance (Current Status) Reference Page 7 in Kaizen by Masaki Imai, McGraw-Hill

20 WHAT IS MAINTENANCE? Refers to activities directed to maintaining current technological, managerial, and standard operating procedures (SOP). Establish policies, rules, directives, and standard procedures Provide training Maintain discipline (adherence)

21 INNOVATION WITHOUT KAIZEN InnovationWhat actually is Maintenance What actually is Maintenance What should be (standard) Time Reference Page 26 in Kaizen by Masaki Imai, McGraw-Hill Larger Innovation

22 INNOVATION WITH KAIZEN Innovation Kaizen Innovation What should be (standard) New standard Time New standard Kaizen Reference Page 27 in Kaizen by Masaki Imai, McGraw-Hill

23 INNOVATION Plus KAIZEN HOW CAN THIS BE DONE IN YOUR ORGANIZATION?

24 Getting Started with KAIZEN Common Approaches: 1. Random Acts of Improvement – No alignment of efforts 2. Pilot Tests in High Potential Areas – OK to “prove it” where direction is not clear 3. Visible organization-wide Involvement ==> Five (5) S Campaign

25 1. Seiri (say ree) Sort (organization) Eliminate what is not needed; extra parts, materials, tools, machines, etc. Eliminate clutter and gain space– often by area using a Kaizen blitz

26 2. Seiton (say tawn) Set in order (orderliness) A place for everything & everything in its place. Tools, parts, equipment easily accessible with their places marked. Aisle ways & stairways clear, accessible and safe. Often involves the use of filing cabinets, shelves, shadow boards, drawers, etc.

27 3. Seisou (say so) Shine (cleanliness) Area, tools & equipment cleaned. Root causes of dirt also identified for future prevention. Repairs and maintenance often done to avoid breakdowns. (segway to standardization)

28 4. Seiketsu (say kets soo ) Standardize (adherence) Procedures established to maintain first three categories and for training and communication. Places and quantities for materials & tools clearly marked (color codes, tape, etc.) Checklists created for cleaning and maintenance tasks. Adjustments are incorporated to keep relevant to new requirements.

29 5. Shitsuke (sheet soo kay) Sustain (discipline) Follow the rules, make it a way of life (not just a one-time clean-up project) On going management support of 5S is required. Inspections (audits) are made to determine follow up requirements.