1. Internal Communication & Kaizen Benoît ROZIERES Jérôme DIDOT How a Kaizen approach may humanize the workplace?

2. Internal Communication & Kaizen Summary : - Introduction to Kaizen - Tools used to develop a Kaizen spirit at workplace - Application of Kaizen attitude within Toyota - Some reasons why Kaizen can lead to a failure - Conclusion

3. Introduction to Kaizen – PartI: Basis of Kaizen Japan, 1950’s: A post-WorldWarII need to restore the nation Experts worked on methods & processes destined to improve working structures :  Operations standardization & optimization  Constant measures for continual improvement Internal Communication & Kaizen

4. Introduction to Kaizen – PartII: Ancestral meaning Japanese translation of “KAIZEN”: ‘KAI’ : ‘change’ or ‘the action to correct’ ‘ZEN’ : ‘in a good way’  improvement Not a simple concept, but a whole philosophy Ancestral meaning focused on better life in society Internal Communication & Kaizen

5. Introduction to Kaizen – PartIII: A way of thinking Workplace ‘quality’ strategy: Processes, monitors then adjusts technics Eliminates mental & physical wasteful works/tasks Improves continuously the way of doing business - Linkage between a process & its result as a whole - Learning & non-judgmental views re-examination - Smooth way of approaching changes (not radical!) Former ‘Kaizen’ values applied to the business place Internal Communication & Kaizen

6. Introduction to Kaizen – PartIII: A way of thinking Every stakeholder is an equal active actor for the development & improvement of the company. “Upward model” of the basic organizational chart Internal Communication & Kaizen Customers Staff (Workers) Middle Management CEO & Top-Management UPWARD

7. Tools used to develop a Kaizen spirit at workplace - 5S Methodology - Total Quality Management (TQM) - PDCA (“Wheel of Deming”) - Six Sigma| - Lean Thinking| - Balanced Scorecard - … Internal Communication & Kaizen  TOC Lean Six Sigma

8. - 5S Methodology Organization, Orderliness, Cleanliness, StandardCleanup, Discipline - Sorting - Simplifying - Shining - Standardizing - Sustaining  Improve levels of quality communication  Improve information sharing, morale, safety Internal Communication & Kaizen

9. - Total Quality Management (TQM) Management strategy in organizational processes : - Quality - All members’ participation (Teamwork) - Long-term success - Benefit to all stakeholders  Educate and create employees’ satisfaction Internal Communication & Kaizen

10. - PDCA (“Wheel of Deming”) Problem-solving process used in quality control - PLAN - DO - CHECK - ACT  Review all steps  Improve it for next implementation Internal Communication & Kaizen

11. - Six Sigma / Lean Thinking  TOC Lean Six Sigma Set of practices that improve processes by eliminating defects - Executive Leadership (CEO + Top Mngers) - Champions - Master Black Belts - Experts - Black Belts - Green Belts - Yellow Belts  Professionalize quality management functions  Improve process to that level of quality or better Internal Communication & Kaizen

12. - Balanced Scorecard Concept measuring concordance of objectives with corpo’ strategy, by providing greater contextual justification for each measure taken. - Learning & Growth - jobs (human capital), - systems (info capital), - climate (organization capital)  Provide a ‘human’ view of a business to act in the best long-term interests of both workers and CEO. Internal Communication & Kaizen

13. Kaisen and Toyota: Reduce cost, increase productivity is the key of the success. For Toyota, the internal crisis during the 90’s wasn’t a symbol of good corporate management. Kaisen method was the solution to: Fight the wasting to reduce the number of the tasks and the agents of manufacturing, thus increase the productivity. Internal Communication & Kaizen

14. Some reasons why Kaizen can lead to a failure Reason 1: Lack of internal communication Reason 2: Lack of top-down management support Reason 3: Lack of middle management/supervisor buy-in Reason 4: Non understanding of the link with human behavior Reason 5: Lack of customer focus Reason 6: Lack of improvement measures Reason 7: Lack of lean leadership Reason 8: Gap between human measures and lean goals Reason 9: Using Kaizen as a sole improvement measurement Reason 10: Using bonus pay systems to only generate ‘profit’ Internal Communication & Kaizen

15. Conclusion Kaisen activity imply 4 effects:  Paying attention to the quality and the productivity  A long and durable process not short and radical (innovation): acquiring little by little kaisen and problem solving ability  Perceiving the work place as their own  Understanding the meaning of kaisen Obviously Kaisen imposed provokes their workers hostile or negative reaction against improvement of their own working process. So, it’s the priority for company to construct good human relationship among them, which workers kaisen activities can be one of the means to involve them in. Internal Communication & Kaizen