1. The subject of an address Features, Methods, tools and Techniques of KAIZEN 1 Project on Dissemination of Quality/Productivity Improvement (KAIZEN) Practice For Small and Medium Enterprises In the Hashemite Kingdom of Jordan Japan International Cooperation Agency

2. Background of presenter, Sachinori Furuya 1961 Entered Matsushita Electric Industrial Co. (now, Panasonic Co.) TV Division, TV Dept. as Engineer of design, development & planning 1979 Transferred to Brazil Panasonic as General of manager of Engineering Dept. 1986 Transferred to Philippine Panasonic as Director and Philippine Matsushita Communication Ind. Co. as Director in charge of manufacturing and engineering 1991 Panasonic Co., TV Division as Councilor of High Definition TV Project 1998 Retired from Panasonic Co. and joint Japan Super Ind. Co. in Thailand as Factory director for supervision of parts production operation At present Unico International Co. as Kaizen Advisor Others Lecturer of Graduate School of Doshisha Univ. Member of Osaka Management Association Member of Japan Risk Management Institute Publications: “Company Policy and Comprehensive Policy Science”, etc. 2

3. 1. The basic way of thinking that is supporting KAIZEN (1) ・ KAIZEN is an activity which improves something to better result. The activity includes not only small improvement without significant investment, but also the major reforms/restructuring projects. ・ KAIZEN is a source of competitiveness. The company which maintains the competitiveness for long time has the characteristics that the employees continue KAIZEN activity. The implementation of continuous and organizational KAIZEN is a key of the prosperity in the company. ・ KAIZEN methods vary depending on the conditions of the company which practice KAIZEN. a. The scale of the company b. The field of industry and the kind of products produced in the company c. The activity in whole the company or in the limited department d. The limited subjects applied or everything e. The company has already experienced KAIZEN or not. The level of the results has been high or not. 3 ① What is KAIZEN

4. 1. The basic way of thinking that is supporting KAIZEN (2) ②How to promote KAIZEN activity systematically ・ Requirements for the systematic promotion a. Knowledge and capability to practice KAIZEN. b. KAIZEN in all the departments. c. Establishment of the groundwork for KAIZEN. ・ Subjects of KAIZEN should be in line with the direction set by the management The policy of top management is detailed to each section. The objectives are selected for KAIZEN activity. ・ Establishment of the system for the actions The organization of promotion, the rules, the commendation system, etc. for KAIZEN activity are established. KAIZEN in line KAIZEN without with management order Fig. 1-1 The object is notified in a organization Each subject is selected in line with the policy of organization. Then, KAIZEN is performed in one direction by all members. 4

5. 1. The basic way of thinking that is supporting KAIZEN (3) ・ Groundwork for KAIZEN It is necessary that importance of KAIZEN, fundamental capability for the improvement, importance of the standardization are understood by all members of KAIZEN activity. The system is established to promote KAIZEN activity. ・ Continuous education & training The basic knowledge is required to utilize or promote KAIZEN activity and it is necessary to the system for the organizational education. Fig. 1-2 The groundwork for KAIZEN It is necessary to make the system for organizational education or training in addition to individual capability in order to advance KAIZEN activity. 5

6. 1. The basic way of thinking that is supporting KAIZEN (4) ③ P-D-C-A and continuous KAIZEN ・ KAIZEN is to rotate the P-D-C-A cycle The basis of KAIZEN is a cycle to take necessary actions after the observation of actual conditions. Fig. 1-3 The fundamental QC principle of management : P-D-C-A and KAIZEN ・ Continuous KAIZEN by high level of P The target of actions is gradually made high due to implementation of P-D-C-A cycle and the output level of KAIZEN can finally becomes high. Fig. 1-4 Total uplift by the application of continuous P-D-C-A cycle In order to make the result of KAIZEN high level, it is necessary to implement P- D-C-A cycle with high-target repeatedly. 6

7. 2. Focus of improvement under the KAIZEN Points for the actionsExamples of the actionsExpected results Unreasonable volume, quantity of things, space, time “MURI” in Japanese Improvements from too much or too little volume of things, areas, volume & quantity to proper situation Removal of unsafe part, better quality Useless materials, works, spaces, time, volume & quantity “MUDA” in Japanese Reductions of excess work, time, transportation, information, documents, processes, facilities, energy, etc. Reduction of cost & areas for inventory, better productivity Uneven things, time, volume & quantity “MURA” in Japanese Improvement for working standard and even things, materials with equality, etc. Revision of working standard, even level of quality and productivity 7 Table 2-1 Above 3 points are usually used for the practical KAIZEN approaches.

8. 3. The summary of actions and the merits of KAIZEN Table 3-1 The characteristics of Japanese-style KAIZEN activity Target Strengthening & improvement Object Improvement in company wide Period Long time & continuous activity Process Trial & error to the present system, and accumulation of small improvements Approach Inductive method (analytic approach) Participa- tion Improvement by mainly working person Table 3-2 The merits of Japanese-style KAIZEN ・ Small scale investment, small risk ・ Steady investment for improvement ・ Accumulation and expansion of empirical know-how ・ Enhanced capabilities built in the organization ・ Improvement of existing system and strong encouragement 8 In order to implement KAIZEN, it is necessary to select the proper method suitable to the company or the workplace. And, it is necessary to select the fundamental knowledge, usable tools and system consisted of the groundwork for activity to get good results.

9. 4. An image map to implement KAIZEN activity Manage- ment Philosophy 9 Manage- ment policy & Target, Annual Plan Corporate culture Fig. 4-1 An Image map to implement KAIZEN activity Fundamental Knowledge, tools, system supporting KAIZEN activity 〈 QC, IE, VA/VE, target management, etc. 〉 The most proper and effective focus areas of KAIZEN 〈 S-Q-C-D-P-M, basic items for management 〉 Methods for KAIZEN ・ Suggestion system for improvement ・ＱＣＣ (Quality Control Circle) ・５Ｓ (Five S) ・ＴＱＭ (Total Quality Management) ・ＴＰＭ (Total Productive Maintenance) ・ＪＩＴ (Just in Time - Kanban system) Long term improvement of profit Improvement of company reliability Improvement of welfare for employees

10. 5. Introduction of KAIZEN system in outline (1) System name The special features of the activity Supporting tools etc. Participation Grade Sugges- tion System for Improve- ment This method was started in USA as “Suggestion System”. “Suggestion System for Improvement” was started in Japan since around 1950. This system was first put into practice mainly in a manufacturing section, and gradually expanded into office work sections. It was widely developed as the type of improvement by all the workers in the workplace in stead of USA type improvements which are attached importance to an individual idea. IE, QC, VA/VE, Small group activity, Standardi- zation, Education & training All sections, especially Manufact- uring & production engineering sections Workers & supervisors Ａ 10 ・ The grade of difficulty: A is relatively easy, C is difficult, B is in-between. Table 5-1 KAIZEN system (1)

11. 5. Introduction of KAIZEN system in outline (2) System name The special features of the activity Supporting tools etc. Participation Grade 5S Activity 5S is one of KAIZEN activities by using 5 processes, namely, SEIRI, SEITON, SEISO, SEIKETSU and SHITSUKE in workplace. For the first, it was applied to whole the factory by means of improvements for productivity, delivery, quality and safety, and it was gradually extended in office work sections to get same effects. The 5 Japanese words composed of the actions spread out worldwide. They mean typically rearrangement, tidiness, cleaning, cleanliness and discipline. IE, QC, Standard- ization, Manage- ment by objectives, Small group Activity, Education & training Mainly all sections supporting Manufactur- ing & office work, Workers & supervisors Ｂ 11 Table 5-2 KAIZEN system (2)

12. 5. Introduction of KAIZEN system in outline (3) System name The special features of the activity Supporting tools etc. Participation Grade TQM Total Quality Manage- ment Targets for quality improvement are decided and the actions are set to realize the targets company-wide. The typical actions are: communication of targets to workplace concerned, education & training to supervisors, to extend consciousness of quality & cost, manufacturing with quality control, cooperation with all sections concerned, to complete the quality targets together with suppliers and to keep high quality when changing to new model smoothly. QC, VA/VE, Documenta- tion, Small group activity, Training & encourege- ment All sections, QC section takes the lead. Workers & supervisors Ｃ 12 Table 5-3 KAIZEN system (3)

13. 5. Introduction of KAIZEN system in outline (4) System name The special features of the activity Supporting tools etc. Participation Grade QCC Quality Control Circle QCC is an organization to take actions for improving production processes and quality etc. by workers in each workplace. That is so-called “Small group activity” organized as “informal party. To study quality improvements, “QC 7 tools” are used. The results of the activity are mainly quality and productivity improvements, but lately, many other sections are aiming at improvements of any work. A part of the activities is similar to “Suggestion system for improvement”. QC, Small group activity, Training & Encour- agement, Standardiza- tion, Documenta- tion, IE, VA/VE Mainly Manufactur- ing section, but, all sections can be applied. Workers & supervisors Ｂ 13 Table 5-4 KAIZEN system (4)

14. 5. Introduction of KAIZEN system in outline (5) System name The special features of the activity Supporting tools etc. Participation Grade TPM Total Produc- tive Mainte- nance Preventive maintenance “PM” was introduced in USA in 1950s for the first. Maintenance activity for facilities was introduced by changes from Back maintenance “BM” to → “PM” → Complete maintenance (CM) in Japan. Then TPM was introduced in Japan as an independent activity by “Small group activity” in workplace in 1970s. The results expected good effects were expanded in controls of productivity, quality, cost, delivery, safety and human resources. A part of this activity is similar to 5S activity. 5S, QC, IE, IT, Small group activity, Manage- ment by objectives, Sandardiza- tion, Training & encourage- ment Manufact- uring, but, prod. engineering and purchasing sections required cooperation. Workers & supervisors Ｃ 14 Table 5-5 KAIZEN system (5)

15. 5. Introduction of KAIZEN system in outline (6) System name The special features of the activity Supporting tools etc. Participation Grade JIT Just In Time (Kanban system) JIT means a way of thinking that necessary quantity of a necessary model should be made in necessary period of time. In order to reduce the inventory of the products in process as possible, mixed different models are sent on the production line one model by one model. The lead time of total process is reduced as possible so that the company can get the competitiveness in the market. “Kanban (signboard) system” is a definite method of JIT. IE, QC, IT, 5S, Manage- ment by objectives, Standardi- za-tion, Cost manage- ment Mainly manufact- uring, but included related sections. Workers & supervisors Ｃ 15 Table 5-6 KAIZEN system (6)

16. 6. Knowledge and tools supporting KAIZEN activity (1) QC Quality Control The QC tools are concretely used to utilize the statistical method for analysis or for removing of scattering product quality, and also used for the incoming inspection of raw materials from suppliers. QCC activity is usually supported by QC 7 tools. To make the process standard for production of which quality is important, the QC process chart is needed. I E Industrial Engineering The IE Analysis method is practically used for the improvement of workplace. For example, the process analysis is used as a tool to implement an order of SEITON(tidiness) of 5S. In short, IE, QC, VA/VE is used to find problems and also used as the fundamental skills for the improvement. VA/VE Value Analysis Value Engineering The purpose is to make the value maximum when the product value is defined as Value = Function/Cost. To realize the maximum value, design change, revision of specification, process and layout improvement, and improvement required to suppliers. VA Is a skill for the stage of manufacturing and VE is for the stage of engineering. Standardiz- ation This is an action to make standards of software and hardware and helps on everything in the management. When a working standard is revised, then, the improved process is applied to other process with good results, it becomes a new standard. In case that various kinds of parts are unified as a standard to reduce to a variety, the numbers of tools used can be reduced, the stock area of parts is reduced and the cost can be reduced because of the mass production. 16 Table 6-1

17. 6. Knowledge and tools supporting KAIZEN activity (2) Management by Objectives Various skills are included in the management by objectives. For example. Top management or manager can easily give direction by looking at so-called the visible control board shown the progress of project or actual operation. Cost Management After the product specification was revised or the working process was changed by KAIZEN, the results should be numerically clear by the cost accounting. IT Information Technology IT is helpful on the improvement of management efficiency and additional values to many matters. It is necessary to use carefully and not to put confidence in IT. Safety Management The basic knowledge of safety operations, standard inspection of safety, control and arrangements for safety wears, etc. are useful on KAIZEN. Education and Training It is necessary that employees attend the small group activity and that they learn the basic knowledge about the working process, safety, discipline, etc., and that manager gives helpful comments to KAIZEN activity. Documenta- tion To utilize commonly as information source, all sorts of standard, know-how, data, working instruction, etc. in writing are accumulated and stored. This is the source for the development and the property of the company. 17 Table 6-2

18. 7. Common features of workplace in the company of bad management ・ There are common symptoms for the company of bad management. ・ Employees do not greet each other, they are also cheerless, the attendance ratio is always low, defects of products are increasing, tools are scattered around workplace and materials are piled disorderly in the company. ・ Troubles caused by products and problems of product delivery remain unchanged, human relations become bad, and KAIZEN activity is not practiced. Fig. 7-1 KAIZEN is like a mirror reflecting workplace 18

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