Kaizen color
- 1. “ A never-ending journey” CONTINUOUS “UNLESS YOU CHANGE THE PROCESS, IMPROVEMENT WHY WOULD YOU EXPECT THE (KAIZEN) RESULTS TO CHANGE?” The President of Texas Instruments Defense Systems and Electronic Group Dr. Ömer Yağız Department of Business Administration Eastern Mediterranean University 1 2 “ KAIZEN STRATEGY IS THE SINGLE “IMPROVE CONSTANTLY AND MOST IMPORTANT CONCEPT IN FOREVER THE SYSTEM OF JAPANESE MANAGEMENT--THE KEY PRODUCTION AND SERVICE. TO JAPANESE COMPETITIVE IMPROVEMENT IS NOT A ONE-TIME SUCCESS. KAIZEN MEANS ‘ON- EFFORT. MANAGEMENT IS GOING’ IMPROVEMENT INVOLVING OBLIGATED TO CONTINUALLY LOOK EVERYONE--TOP MANAGEMENT, FOR WAYS TO REDUCE WASTE AND MANAGERS, AND WORKERS.” IMPROVE QUALITY.” Masaaki Imai W. Edwards Deming 3 4
- 2. “THE STARTING POINT FOR IMPROVEMENT IS TO RECOGNIZE THE NEED. THIS COMES FROM Lecture Plan RECOGNITION OF A PROBLEM. IF NO PROBLEM IS RECOGNIZED, THERE IS • First, we will discuss the subject of Process NO RECOGNITION OF THE NEED FOR Management which is an integral part of the IMPROVEMENT. COMPLACENCY IS TQM system. It is also a major criterion for THE ARCH-ENEMY OF KAIZEN. the EFQM and Baldrige Awards. THEREFORE, KAIZEN EMPHASIZES • Next, we will take up “Kaizen” or “ PROBLEM-AWARENESS AND Continuous Improvement”. PROVIDES CLUES FOR IDENTIFYING PROBLEMS.” Masaaki Imai 5 6 EFQM QUALITY MODEL PROCESS MANAGEMENT • What is a process ? A sequence of activities that is intended to achieve some result, typically to create added value for a customer. • Two types of processes: • core processes (those that drive the creation of goods and services) • support processes (those that are critical to production and delivery) 7 8
- 3. Characteristics of companies that Process Management contd... successfully manage their processes • To apply process management techniques, • They control the quality and operational processes must be performance of key processes used to 1. repeatable - process must recur over produce and deliver products and services. time • They identify significant variations in 2. measurable - information can be processes and outputs, determine root obtained by measurement causes, make corrections, and verify results. • They continually improve processes to achieve better quality, cycle time, and 9 overall operational performance. 10 Characteristics of companies that Characteristics of companies that successfully manage their successfully manage their processes contd... processes contd... • They set “stretch goals” and make extensive use of benchmarking and reengineering to • Reengineering is the radical redesign of business achieve breakthrough performance. processes to achieve unprecedented improvement in • Stretch goals push an organization to think performance (Intel Example -- 91 step procedure --> differently. Such radical thinking results in dramatic 8 steps) innovation and significant leaps in performance. Benchmarking and reengineering support innovation. • Benchmarking is the search for best practices, in any company, in any industry, any where in the world. 11 12
- 4. MOTOROLA Co. --A famous What is a stretch goal ? illustration of stretch goal A stretch goal is an ambitious goal. “Six Sigma Quality” concept of Motorola: Sometimes it is called a “breakthrough Motorola set the following stretch goal objective.” Stretch goals force an in 1987. organization to think radically different to “Improve product and services quality ten times by encourage major improvements, as well as 1989, and at least one hundred fold by 1991. Achieve six sigma capability by 1992. With a deep sense of incremental ones. Stretch goals can be set urgency, spread dedication to quality to every facet of for all areas of the company, including the corporation, and achieve a culture of continuous manufacturing, sales, accounting, product improvement to assure total customer satisfaction. There is only one ultimate goal: zero defects--in design, etc. everything we do.” 13 14 MOTOROLA Co. --A famous CONTINUOUS illustration of stretch goal contd... IMPROVEMENT (KAIZEN) Concept of six-sigma quality: Kaizen is the name given by the Japanese to Shrinking process variation (as indicated by continuous improvement. Continuous 6 sigma) to half of the design tolerance so improvement really means “continuous that only 3.4 parts out of 1 million are incremental improvement.” defective. Kai change At Motorola, six sigma became part of the zen good common language of all employees. To Kaizen means making changes for the better them it meant “near perfection”, even if on a continual, never-ending basis. some did not understand the statistical details. 15 16
- 5. Continuous Improvement Two Elements of Kaizen • Kaizen refers to improvement of both • There are two elements that construct processes and people. KAIZEN, improvement/change • In fact Kaizen philosophy aims at for the better and ongoing/continuity. improving all aspects of an organization all Lacking one of those elements would the time. not be considered KAIZEN. For instance, • Good is never good enough; kaizen is a the expression of "business as never-ending journey to excellence. usual" contains the element of continuity without improvement. On the other hand, the expression of 17 18 "breakthrough" contains the element of Overview of the concept of Two Elements of Kaizen Kaizen (Imai) For instance, the expression of "business as 1.Kaizen value system --- continual usual" contains the element of continuity improvement of all things, at all levels, all without improvement. On the other hand, the the time, forever. expression of "breakthrough" contains the 2.Role of top management --- top element of change or improvement without management is responsible for establishing continuity. KAIZEN should contain both Kaizen as the overriding corporate strategy elements. and communicating this commitment to all levels of the organization and allocating the 19 resources necessary for Kaizen to work. 20
- 6. Overview of the concept of Overview of the concept of Kaizen (Imai) contd... Kaizen (Imai) contd... 3.Role of middle management --- responsible 4.Role of supervisors --- responsible for for implementing the Kaizen policies applying the Kaizen approach in their established by top management; functional roles; developing plans for establishing, maintaining and improving carrying out the Kaizen approach at the work standards; ensuring that employees functional level; improving communication receive the training necessary to understand at the workplace; maintaining morale; and implement Kaizen, and ensuring that providing coaching for teamwork activities; employees learn how to use problem soliciting Kaizen suggestions from solving and improvement tools. employees and making Kaizen suggestions. 21 22 Overview of the concept of Overview of the concept of Kaizen (Imai) contd... Kaizen (Imai) contd... 5.Role of employees --- responsible for 6.Kaizen and quality --- In a TQM participating in Kaizen through teamwork environment quality is defined by activities, making Kaizen suggestions, customers. Regardless of how customers engaging in continuous self-improvement define quality, it can always be improved activities, continually enhancing job skills and it should be, continually. through education and training, and continually broadening job skills through cross-functional training. 23 24
- 7. KAIZEN KAIZEN • The following excerpt is taken from the It is very natural that people will propose some kind of change in their own work place, when they become unsatisfied with their present Kaizen Institute website (www.kaizen- conditions. Some of the improvements could be carried outright away. Perhaps, the boss won't even notice them. However, when approval is institute.com). It sums up the philosophy required, several kinds of responses from the boss could have taken and approach of KAIZEN. place. The ideal situation is that the boss encourages their subordinates to carry out their ideas. The boss then appreciates the efforts or gives – "Not a day should go without some kind of improvement being recognition. That's what people expect when they propose something. made somewhere in the company. When KAIZEN is adapted in The positive response given by the boss will then develop trust with organizations and management perspectives, however, it is easier the subordinates and stimulate other improvements. Cumulatively, this to talk about it than to implement it. will create momentum for continuing improvement.” 25 26 The Wet Blanket List THE WET BLANKET LIST 1. I am too busy to study it However, life in the organization is not as easy. The boss 2. It's a good idea, but the timing is premature could ask you a silly question like: "it is not broken, why 3. It is not in the budget should we change it" or "the procedure is fine with me, 4. Theory is different from practice why should we change it?". From your 5. Isn't there something else for you to do ? perspective, you know that if you change it, the boss will 6. I think it doesn't match corporate policy blame you. The boss just did not want to give you a try, 7. It isn't our business; let someone else think with a lot of reasons and/or no reasons. You could not do about it anything anymore, "the boss is always right" 8. Are you dissatisfied with your work ? like the saying goes. There are so many bosses like that. 9. It's not improvement, it's common sense The book KAIZEN talks about the list called "The Wet 10. I know the result, even if we don't do it Blanket List". The bosses should encourage their 11. I will not be held accountable for it 12. Can't you think of a better idea ? subordinates, but in a real life, the wet blankets put out the "fire" of improvement suggestions. Here is the list of wet blankets: 27 28
- 8. Ten Basic Tips for KAIZEN THE WET BLANKET LIST Activities Yes, I heard them from my boss, you may say, however, “As you know by now, it is not easy to implement reflect on yourself before you blame your boss. Your the KAIZEN philosophy to where the culture is subordinates may also hear them from you frequently. In not solid to adopt it. KAIZEN Institute can help to an inefficient organization, everybody tends to throw wet blankets everywhere. You could also add more wet change the way of thinking of your people and the blankets from your own vocabulary, the list could be culture and make a difference. Here is the first endless. advice from us for you to start with, the list of basic tips for KAIZEN to have the first step of KAIZEN implementation.” - KAIZEN INSTITUTE 29 30 Basic Tips for Kaizen Activities 1. Discard conventional fixed ideas. Concept of Gembakaizen 2. Think of how to do it, not why it cannot be done. 3. Do not make excuses. Start by questioning In manufacturing industry, there are three major activities current practices. directly related to earning money: developing, producing 4. Do not seek perfection. Do it right away even if for and selling products. Without these activities, the company only 50% of target. cannot exist. Therefore, in a broad sense, GEMBA means 5. Correct it right away, if you make a mistake. the sites of these three major activities. In a narrower 6. Do not spend money for KAIZEN, use your context, however, GEMBA means the place where the wisdom. products are made. The word is usually used in this 7. Wisdom is brought out when faced with hardship. narrower context, since production sites have been one of 8. Ask 'WHY?" five times and seek root causes. the business arenas most neglected by management. 9. Seek the wisdom of ten people rather than the knowledge of one. 10. KAIZEN ideas are infinite." 31 32
- 9. Concept of Gembakaizen Concept of Gembakaizen Managers seem to write production off as only a secondary In the service industries, GEMBA is where the customers means to earn money, and usually place far more emphasis come into contact with the services offered. In the hotel on such sectors as financial management, marketing and business, for instance, GEMBA is everywhere: the lobby, sales, and product development. When GEMBA or the dining room, guest rooms, the receptionist's desk, production sites do become a focus of management check-in counters, and the concierge station. At banks, attention, though, they can be turned into a utopia capable tellers are working in GEMBA, as are loan officers of making the company far more successful and receiving applicants. The same goes for employee's profitable. working desks in offices and for telephone operators sitting in front of switchboards. Thus, GEMBA spans a multitude of offices and administrative functions. 33 34 Elements of Kaizen Concept of Gembakaizen Customer Focus TPM JIT Now you have a good understanding of the words, KAIZEN and GEMBA. Elements • GEMBAKAIZEN is KAIZEN activities that take place in Labor-Man of Teamwork GEMBA. Cooperation Kaizen • GEMBAKAIZEN is to make continuous improvement at the real place, where the action is going on, and that can make your organization better. (Source: Kaizen Institute Quality Web Page) Automation Circles 35 Goetsch, D. and Davis, S. B. Introduction to Total Quality. Second 36 ed. Prentice-Hall. 1997
- 10. Kaizen Checklists contd... Kaizen Checklists HOW CAN THIS BE IMPROVED ? Kaizen is about continual improvement of Factors which may need improvement: people, processes, procedures, and any 1. personnel 9. software other factors that affect quality. An effective 2. work techniques 10. tools way to identify problems that represent 3. work methods 11. materials opportunities for improvement is to use a 4. work procedures 12. plant layout checklist that draws attention to those 5. time 13. production levels factors that are most likely in need of 6. facilities 14. inventory improvement. The factors ---next.. 7. equipment 15. paradigms (mindset) 37 8. systems 38 EFQM QUALITY MODEL FIVE W’s and ONE H Using the five W’s and One H encourages employees to look at a process and ask questions. WHO WHO WHAT WHAT WHERE WHERE WHEN WHY HOW HOW WHEN WHY 39 40
- 11. FIVE W’s and ONE H contd.. Five - M Checklist • Who ---Who is doing it? Who should be doing it? • What --- What is being done? What should Man Machines Material (Operator) be done? • Where --- Where is it being done ? Where should it be done ? • When --- When is it being done ? When should it be done ? Methods Measurement • Why --- Why is it being done ? Why do it that way ? The Five-M Checklist is an approach that focuses attention on • How --- How is it being done ? How should 41 the five key factors which are present in any process. 42 it be done ? PDCA Cycle (Deming Wheel) PUKÖ DÖNGÜSÜ PDCA Cycle (Deming Wheel) 1. Plan a change 4. Institutionalize aimed at the change or improvement. abandon or do it again. Planla Önlem al 4. Act 1. Plan BOOKS ABOUT KAIZEN & GEMBA KAIZEN 3. Check 2. Do 3. Study the results; did 2. Execute the it work? change. Kontrol et Uygula 43 44