KAIZEN Basics for yourself. Pl get benefitted
- 1. Kaizen
- 2. Management – a different approach • Management has two major components: 1. Maintenance 2.Improvement • Under the maintenance function, the management must first establish policies, rules, directives and standard operating procedures (SOPs) and then work towards ensuring that everybody follows SOP. • Under the improvement function, management works continuously towards revising the current standards, once they have been mastered, and establishing higher ones.
- 3. Management - Improvement • Improvement can be broken down between innovation and Kaizen. • Innovation involves a drastic improvement in the existing process and requires large investments. Kaizen signifies small improvements as a result of coordinated continuous efforts by all employees. • Kaizen (the translation of kai (change) zen (good) is “improvement‖). This method became famous by the book of Masaaki Imai “Kaizen: The Key to Japan's Competitive Success.”
- 4. So what is Kaizen ? • Kaizen refers to philosophy or practices that focus upon continuous improvement of processes in manufacturing, engineering, supporting business processes, and management. • By improving standardized activities and processes, kaizen aims to eliminate waste as in lean manufacturing( Toyota Production System ).
- 5. Why Use Kaizen? • To solve problems (without already knowing the solution) • To eliminate waste (Muda) • Transportation, Inventory, Motion, Waiting, Over-production, Over-processing, Defects • Create ownership and empowerment • Support lean thinking 5
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- 7. 7 ―All we are doing is looking at the time line; from the moment the customer gives us an order, to the point when we collect cash. We are reducing that time line by removing the non-value-added wastes.‖ Taiichi Ohno Order Cash (Reduce by removing non-value-added wastes) Simple, very clear focus
- 8. Kaizen Cycle Start Here Do It Again Document Reality Celebrate Identify Waste Plan Counter- measures Reality Check Kaizen Make Changes Verify Change Make this the Standard Measure Results 8
- 9. 9 If you make changes based on data, the data should be based on reality Everyone has to contribute Be open minded - try it instead of racking your brain for reasons why it won’t work (try-storming) Gain complete understanding, assume nothing Both in your actions and in what you implement Be safe / Think safe Six Basic Rules of Kaizen Particularly the local operators, you are in their living room Document reality Do your share Try something new Ask why (the 5 why’s)
- 10. How did it gain importance ? • Kaizen was first implemented in several Japanese businesses after World War II, influenced in part by American business and quality management teachers who visited the country. • It has since spread throughout the world and is now being implemented in many other venues besides just business and productivity.
- 12. Where is it applicable ? • It has been applied in healthcare ,psychotherapy, life-coaching, government, banking, and many other industries. • When used in the business sense and applied to the workplace, kaizen refers to activities that continually improve all functions, and involves all employees from the CEO to the assembly line workers. • It also applies to processes, such as purchasing and logistics, that cross organizational boundaries into the supply chain.
- 13. Kaizen and Management Levels
- 14. • Improvements are based on many, small changes rather than the radical changes that might arise from R & D . • As the ideas come from the workers themselves, they are less likely to be radically different, and therefore easier to implement • Small improvements are less likely to require major capital investment than major process changes • The ideas come from the talents of the existing workforce, as opposed to using R&D, consultants or equipment – any of which could be very expensive • All employees should continually be seeking ways to improve their own performance • It helps encourage workers to take ownership for their work, and can help reinforce team working, thereby improving worker motivation Key Features of Kaizen
- 15. Thus • Kaizen is a daily process, the purpose of which goes beyond simple productivity improvement. • It is also a process that, when done correctly, humanizes the workplace, eliminates overly hard work ("muri"), and teaches people how to perform experiments on their work using the scientific method and how to learn to spot and eliminate waste in business processes.
- 16. 7 Conditions for Successful Implementation of Kaizen Strategy 1. Top management commitment 2. Top management commitment 3. Top management commitment 4. Setting up an organization dedicated to promote Kaizen 5. Appointing the best available personnel to manage the Kaizen process 6. Conducting training and education 7. Establishing a step-by-step process for Kaizen introduction.
- 17. The Key Kaizen Practices 1.Mindset & Culture • customer orientation • quality control (QC) circles • suggestion system • discipline in the workplace • small-group activities • cooperative labor-management relations • total quality management (TQM) • quality improvement
- 18. The Key Kaizen Practices 2.Production Process • automation & robotics • Autonomation ( jidoka ) • zero defects • total productive maintenance (TPM) • kanban • Just-in-Time (JIT) • productivity improvement • new product development
- 19. The quick and easy kaizen process 1. The employee identifies a problem, waste, or an opportunity for improvement and writes it down. 2. The employee develops an improvement idea and discusses it with his or her supervisor. 3. The supervisor reviews the idea within 24 hours and encourages immediate action. 4. The employee implements the idea. If a larger improvement idea is approved, the employee should take leadership to implement the idea.
- 20. Kaizen at Toyota • There are two kinds of kaizen activities at Toyota: kaizen made by the supervisory staff and engineers as their functions, and that made by workers through the quality circles and suggestion system. • The management sets a reference ( target ) cost of each of the parts and a standard time for their production. Then the shop floor that produces these parts and vehicles firstly endeavors to attain these costs and standard time, and then reduces them by carrying on kaizen activities. • A maintenance team contributes to increasing the reliability of equipment mainly by executing preventive maintenance and equipment kaizen.
- 21. Kaizen at Toyota • An assembly line is divided into about ten segments per function. It is permitted to have a buffer between two segments, the buffer corresponding to five minutes operations. Thus, when a segment is stopped because of a problem, the others continue to work. So, the production efficiency of the assembly line as a whole does not get lower . • A large conveyer installed on the ground level permit workers to operate, standing on it and without walking much with a car body moving, and especially without walking backward. • Tasks to carry heavy parts also disappeared by installing automatic or semi-automatic equipment
- 22. Summary • Kaizen signifies small improvements as a result of coordinated continuous efforts by all employees. • It is also a process that, when done correctly, humanizes the workplace, eliminates overly hard work, and teaches people how to perform experiments on their work using the scientific method and how to learn to spot and eliminate waste in business processes. • The key Kaizen practices are classified as those which are part of the culture and mindset , and those which are part of the production .
- 23. Improving Productivity And Profitability Through KAIZEN CASE STUDY
- 24. About COMPANY • Axens Ltd. (COMPANY) is one of India’s largest product exporter. • COMPANY’s founding principles of ―passion, performance, people and products‖ fueled phenomenal growth over 30 years. • Through hard work and a dedication to innovation and quality, the Avani family built their company into a major supplier of the world’s most preferred apparel brands, including leading casual and sports clothing lines such as Puma and The Guess. • It is a ―one-stop shop‖ for the world’s most preferred apparel brands, including major casual and sports clothing lines. • In 2010, COMPANY had US $370 million in sales and employed 53,000 people working in 50 factories.
- 25. The Challenge • At the dawn of the 21st century, increasing competitiveness in the global garment industry started depressing the company’s profits. COMPANY’s leaders determined they would need to improve profits 15 percent to 20 percent without adding resources in order to maintain their leading position and remain competitive in the high- volume, low-margin global garment industry. • Puma, a major client, strongly suggested that the company implement lean process improvements. • Some members of COMPANY’s leadership team recognized that lean management could be a long-term solution, but long-time family members resisted, a common reaction to new ideas in many Indian businesses that have achieved success using a traditional management philosophy. They believed it was a good idea for automotive and other heavy-industry companies, but not theirs.
- 26. Solution • Puma so strongly believed that lean practices would position COMPANY for the future that the company paid for TBM Consulting to assess COMPANY’s operations in April of 2009. • The assessment revealed the potential for significant improvement, but COMPANY’s leaders still resisted. • Finally, when learning of TBM’s unconditional satisfaction guarantee, the founding fathers agreed to test the waters.
- 27. Pilot Makes an Impression • The first kaizen event took place at a pilot plant in Aug 2009. That fall, COMPANY executives attended a ―CEO boot camp hosted by TBM at which they learned of many successful lean implementations outside of heavy industry. • TBM and COMPANY launched their Lean Sigma journey at COMPANY’s Axen Product Company (APC). • The implementation went so well, it sparked a raging fire that started spreading throughout the rest of the company. Finally, the company’s leaders fully embraced the Lean philosophy.
- 28. Improvements At the APC Plant
- 29. Expansion • From January 2008 to March 2009, TBM and COMPANY expanded the program to four plants, leading to remarkable results • The company expanded its Lean approach to 15 plants by March of 2010 (75 percent of capacity) and is expanding kaizen events to business processes as well. • Companywide, COMPANY teams hold an average of 10 kaizen events a week.
- 30. Results Lean has become a key enabler for COMPANY and its future continued success in driving revenue, quality, and profitability. While the retail- clothing sector was devastated by a global recession, COMPANY made significant strides in on-time delivery, first pass yield, and productivity— even growing sales by two percent in spite of a dreadful economic downturn. Key improvements are helping to significantly improve its competitive position within the industry: lead time, employee absenteeism and attrition.
- 31. Results
- 32. Results
- 33. Overcoming Cultural Challenges • India’s culture can create unique challenges when introducing and applying lean, something that was evident from the beginning of COMPANY’s efforts. • The biggest challenge relates to worker absenteeism. When it comes to choosing between family events and going to work, family wins most of the time, especially because the garment-industry workforce is comprised mostly of women. • Another challenge is that India is a highly structured and segregated culture in many ways. Socially, there is the well-known caste system, and in the workplace, the tradition of bosses holding power and dictating instructions to workers remains.
- 34. Overcoming Cultural Challenges • Key to convincing the elders in the upper-management was patience, perseverance and taking small-but-convincing steps such as starting with one kaizen at one plant. • At the employee level, training of mid-managers planted lean thinking at the group-leader level because it was apparent the new practices would have to be accepted among mid-managers before plant-level employees could be properly trained.
- 35. Overcoming Cultural Challenges • Additionally, COMPANY appointed dedicated continuous improvement officers to each site. • The company now has 65 such officers at 15 locations. The officers have helped to bridge the gap between the ultra-traditional workplace cultures of India and lean management’s emphasis on employee empowerment. • For example, eliciting improvement ideas from operators has been difficult because it’s not in their nature to decide for themselves what to do. The idea of following the boss’s order has been instilled in them from childhood. So, the continuous improvement officers tend to introduce improvement ideas for kaizens.
- 36. Going Forward • The global recession starting in 2008 caused a drastic drop in apparel demand, but COMPANY is positioned to weather the downturn. • India is the world’s sixth-largest apparel exporter, and the third- largest among Asian nations. As the global economy recovers and demand bounces back, a wave of consolidation among small-scale producers is expected. • As a large-scale lean producer, Company is positioned to grow revenues with limited investment in new resources.