The KAIZEN ChallengeGEMBA KAIZEN PHILOSPHY Q GMP GMP Quality Consultants, We turn Knowledge into Practices 1 Definition of KAIZEN KAI ZEN Change Good (for the better) KAIZEN = Continual Improvement Q GMP GMP Quality Consultants, We turn Knowledge into Practices 2 K A I Z E N Q major part of working culture Doing without realising it continuous improvement / on-going improvement. involves everyone ± top management, managers and workers of all levels. 3 GMP GMP Quality Consultants, We turn Knowledge into Practices WHY and HOW did KAIZEN helped Japan become A Major Global Player. unprecedented growth with tremendous demand for new technologies and new products. We turn Knowledge into Practices . 4 Q GMP GMP Quality Consultants. Re-Engineering strategy shows best results Rapidly expanding markets Consumers more towards quantity than quality. ³Products sell by themselves´ There is abundant and low cost-resources A belief that innovative products could offset sluggish performance in traditional operations. Business Environment Globally In the 1960¶s and early 1970¶s. Management more concerned with increasing sales and market shares than with reducing cost. energy and labour . We turn Knowledge into Practices 5 .The oil crisis in 1970s!!!! The new situation (70¶s) : Cost of material.Sharp increases Overcapacity of production facilities Increased competition in saturated or dwindling markets (sunset industries) Consumer values demanding quality first The need to introduce new products more rapidly The need to lower breakeven point Q GMP GMP Quality Consultants. this meant Increased cost of resources Stiffer competition Quality level achievement strategic to win customers The need to develop customer-orientated products and services faster than ever before. Delays in adopting the latest technology are costly Delays in adopting improved management techniques are costly Japan¶s KAIZEN Strategy was able to meet the challenges Q GMP GMP Quality Consultants. We turn Knowledge into Practices 6 .To a company. The Challenges Facing Us in the 21st Century 1. We turn Knowledge into Practices 7 . e. Q GMP GMP Quality Consultants. Need for high flexibility to respond to market changes and customers¶ requirements 2. Faster life cycle of products 4. Increasing cost pressure and price wars 5. Global relocation to countries of mostbenefit. Greater control for investments and the need for high returns on investments 3. China KAIZEN strategy can work for any company that takes advantage of the Kaizen tools and turn them into a competitive advantage.g. The difference is not one of nationality but one of mentality. We turn Knowledge into Practices 8 . Q GMP GMP Quality Consultants. Over the last thirty years. The lack of cultural bias means that these practices can be just as successfully implemented anywhere.The Kaizen Strategy No cultural factors Many Japanese management strategies succeed simply because they are good management practices. many companies in many countries worldwide (including Malaysia ± Look East) have successfully adopted them. We turn Knowledge into Practices 9 .Problem Recognition o recognition that ANY and EVERY company has problems in their operations. covered up or neglected.´ o problems become opportunities for improvement and solutions. o They will not be hidden. Q GMP GMP Quality Consultants. o corporate culture ³everyone can freely admit these problems. such as design or launching new products) in Western management are seen in terms of conflictresolution. Cross-functional problems (involving a few departments. apply systematic and collaborative approach for cross-functional problem solving.Problem Solving problems as opportunities for improvements and solutions. We turn Knowledge into Practices 10 . Q GMP GMP Quality Consultants. problems are collective responsibilities to be solved together. We turn Knowledge into Practices 11 . quality and scheduling. Customers¶ concerns include the critical areas of cost.Customer Driven management must satisfy the customer and serve customers¶ needs if it is to stay in business and make a profit. ³Customer is King´ Q GMP GMP Quality Consultants. All Kaizen activities should eventually lead to increased customer satisfaction. Process Orientated Everyone is involved in change every day ³There will be no progress if you keep on doing things exactly the same way all the time. Contrast to Western management practice of reviewing people¶s performance strictly on the basis of results and not rewarding the effort people make. We turn Knowledge into Practices 12 . Q GMP GMP Quality Consultants.´ Kaizen generates a process-orientated way of thinking Management supports and acknowledges people¶s process-orientated efforts for improvement. considerations of Product design and marketing strategy.KAIZEN is not Total Corporate Strategy Kaizen does not REPLACE Corporate Strategy. We turn Knowledge into Practices 13 . e. innovations and diversifications Important for top management to always check actual market conditions and trends. information from customers and competitors.g. Identify the trade cycles (cyclic conditions or product life cycles ± sunrise and sunset industry/technology) Q GMP GMP Quality Consultants. We turn Knowledge into Practices .KEY POINTS Kaizen ± WORK CULTURE CONTINUOUS IMPROVEMENT INVOLVES EVERYBODY TECHNOLOGY DRIVEN THRIVE ON HIGH and FAST GROWTH IN ECONOMY Re-Engineering - Kaizen Strategy Problem Recognition Problem Solving Customer Driven Process Orientated Part of Total Corporate Strategy 14 Q GMP GMP Quality Consultants. We turn Knowledge into Practices 15 .KAIZEN And MANAGEMENT Management has two components Management works to MAINTAIN its operations And Management works to make IMPROVEMENTS Q GMP GMP Quality Consultants. Enforce through discipline if needed Management provide training or review Revise the standard so that people can follow it. managerial and operating standards Management first establish policies. Q GMP GMP Quality Consultants. We turn Knowledge into Practices 16 .Maintenance : activities to maintain current technological. rules. directives and procedures (Standard Operation Procedures ± SOP) Ensure compliance by workers. We turn Knowledge into Practices 17 .Kaizen : Kaizen is incremental improvements that is continuous Many small improvement steps lead to total big step Improvements are made with little cost involved It involves all the employees at all levels Q GMP GMP Quality Consultants. ´ Two components ± Re-ENGINEERING and KAIZEN Re-ENGINEERING 1.Large investment in new technology / equipment 3. We turn Knowledge into Practices 18 .Long periods in between these innovation jumps 4.Specialist and selected top people are involved only Q GMP GMP Quality Consultants.Involves a drastic improvement to current conditions 2.Improvement : ³activities directed toward improving current standards. We turn Knowledge into Practices 19 .MAINTENANCE And IMPROVEMENT WHERE TO DRAW THE LINE?? How much of your capability is used for each? And How about the whole organisation? Q GMP GMP Quality Consultants. We turn Knowledge into Practices 20 .All Job Functions has the two components Top Management Middle Management Supervisors Workers Responsibility and Contribution Improvement Maintenance Q GMP GMP Quality Consultants. We turn Knowledge into Practices 21 .GEMBA KAIZEN Perception of Job Function Improvement Top Management Middle Management Supervisors Workers Responsibility and Contribution KAIZEN Maintenance All levels of employees can do KAIZEN Some will do Re-Engineering Q GMP GMP Quality Consultants. Western Perception of Job Function Improvement Top Management Middle Management Supervisors Workers Responsibility and Contribution Maintenance Some will do Re-Engineering All levels of employees do maintenance Q GMP GMP Quality Consultants. We turn Knowledge into Practices 22 . like a flowering plant) Kaizen Needs no large investment to implement Needs continuous effort and commitment.Kaizen Nurtures small and ongoing changes (alive. We turn Knowledge into Practices 23 . Q GMP GMP Quality Consultants. KAIZEN Incremental But Continuous Progress Q GMP GMP Quality Consultants. We turn Knowledge into Practices 24 . 000ppm Reliability ± µzero breakdown¶ 30.like a volcano that erupts in abrupt explosions from time to time.Re-Engineering .000 hrs/mth Sales volume 3 million pieces/month 25 Q GMP GMP Quality Consultants. Ideal pattern ± the ³STEP´ Time Ex : Capacity for new machine 3000/day Quality of new products when set up 10. We turn Knowledge into Practices . RERE-ENGINEERING Dramatic But Intermittent Progress THE IDEAL Q Higher Standard Achieved Through Re-engineering Is Subject To Deterioration Unless Continuing Efforts Are Made First To Maintain It And Then To Improve It 26 GMP GMP Quality Consultants. We turn Knowledge into Practices . After implementation of a new system. We turn Knowledge into Practices 27 . it starts to deteriorate Performance Drops Actual pattern from Re-Engineering Time Benefits of Re-Engineering lost with time Unless Effort is made to MAINTAIN and IMPROVE the standards Q GMP GMP Quality Consultants. We turn Knowledge into Practices 28 .Re-Engineering Alone What should be (Standard) What should be (Standard) What actually is Re-Engineering Maintenance Time Maintenance Q GMP GMP Quality Consultants. We turn Knowledge into Practices 29 .Re-Engineering plus KAIZEN KAIZEN Re-Engineering KAIZEN Re-Engineering Time Kaizen . only a stepping stone to the next improved one. Q GMP GMP Quality Consultants.constant effort not only to maintain but to upgrade standards Every new standard is temporary. We turn Knowledge into Practices 30 .KAIZEN PLUS RERE-ENGINEERING Desirable Progress By Combination Of Two Opposing Methods MAINTENANCE RE-ENGINEERING KAIZEN MAINTENANCE RE-ENGINEERING Q GMP GMP Quality Consultants. Q GMP GMP Quality Consultants.People are Biggest Assets Kaizen depends on everyone doing their little bit to move the mountain Skills and Experience makes workers the experts in their process Investing in Kaizen means investing in people Kaizen is people-orientated In contrast innovation is technologyand money-orientated. We turn Knowledge into Practices 31 . We turn Knowledge into Practices .Features Of Kaizen vs Re-engineering Emphasis Effect Pace Timeframe Change Approach Involvement Mode Know-how Requirement Orientation Evaluation Kaizen Long-term But Undramatic Small Steps Continuous And Incremental Gradual And Constant Group Efforts Everybody Maintenance And Improvement Conventional Know-how Little Investment People Process And Efforts Re-engineering Short-term But Dramatic Big Steps Intermittent Abrupt And Volatile Individual Ideas And Efforts Selected Few Scrap And Build Technological Breakthrough Large Investment Technology Results For Profits 32 Q GMP GMP Quality Consultants. 2.Kaizen and QC Quality Control (QC). Only concerned for productquality control 3. This is the narrow viewpoint of QC Q GMP GMP Quality Consultants. Inspection of finished goods and products. We turn Knowledge into Practices 33 . the old view : 1. Quality Control are the goals of the company : To provide products and services that satisfy customer requirements and earn customer trust Steer company towards higher profitability by improving internal management.beyond prevention of defects from reaching the customer. Prosperity to All Together.Quality Control in Gemba Kaizen Quality Control . Mankichi Teteno (President of Japan Steel Works ) Q GMP GMP Quality Consultants. We turn Knowledge into Practices 34 . Help employees fulfill their potential for achieving the corporate goal through policy deployment and voluntary activities. We turn Knowledge into Practices 35 .Centered on improvement of managerial performance at all levels. like : quality assurance cost reduction meeting production quotas or targets meeting delivery schedules safety Human Resources development new products development productivity improvement supplier management KAIZEN is the spirit of Quality Control Q GMP GMP Quality Consultants. 1. Use problemsolving tools for counter-measures 36 . Identify the next problem to tackle 4 2 2.Kaizen Quality Improvement Cycle. We turn Knowledge into Practices 3. Identify the problem 1 4. KAIZEN Quality Improvement Cycle is used irrespective of cross-functional or functional problems. Building quality into people means helping them become KAIZEN-conscious. Standardize results to prevent reoccurrence 3 Q GMP GMP Quality Consultants. Q GMP GMP Quality Consultants.Kaizen Quality Improvement Cycle. We turn Knowledge into Practices 37 . Practice cycle continuously to build discipline By going through these cycles continuously. it becomes a habit in action. leading to habits in thinking and finally people become Kaizen-minded Quality Control then goes beyond prevention of defects from reaching the customer. We turn Knowledge into Practices .4 3 1 2 38 Q GMP GMP Quality Consultants. We turn Knowledge into Practices 39 .KEY KAIZEN CONCEPTS UNDERSTANDING and PRACTISING KAIZEN CULTURE THROUGH KAIZEN KEY PHRASES Q GMP GMP Quality Consultants. test results. We turn Knowledge into Practices .Speak with Data Kaizen emphasises the use of data. Every thing can be put down to a number (quantified) and every number can be given a cost (costing). We should talk with data and facts When you see data. mistaken data and immeasurable factors. Kaoru Ishikawa (author ³Japanese Quality Control´) 40 Q GMP GMP Quality Consultants. doubt it! When you see the measuring instrument. doubt it! There are such things as false data. doubt it! When you see chemical analysis. Q GMP GMP Quality Consultants. etc. Quality here refers to the broader meaning of quality. We turn Knowledge into Practices 41 . including quality assurance. delivery and schedule. the profits will take care of themselves. cost reduction. Not Profit First Reflects the belief in ´Quality for Quality·s sake ´ and ´Kaizen for Kaizen·s sake.µ If you take care of the quality. efficiency. Seeking improvement for improvement¶s sake is the surest way to strengthen their companies¶ overall competitiveness.Quality First. safety and employee¶s morale. I CHECK!µ There should be no assumption of the quality that reaches us. ´YOU DO.g. We turn Knowledge into Practices 42 . ³WHY did this problem reach my process?´ Problem solving methods are used e. Improvements comes from being aware of what comes from the previous process. Gemba! Q GMP GMP Quality Consultants. 5W 1H.Managing the Previous Process Go back to the previous process to seek the cause of a problem at your process. 5 WHYs. Process has become impersonalized. Never send defective parts to those in the following process. ´I DO. Assuring quality to each customer at each stage will assure quality in the finished product Q GMP GMP Quality Consultants. We turn Knowledge into Practices 43 . I CHECKµ I am the manager of my process. Be sincere enough to admit our own problems ± claim ownership of your process Do everything in your powers to solve them.The Next Process is My Customer. No feeling. This is called ³Discipline´ Q GMP GMP Quality Consultants. tact time.binding on everyone. standard time. Identify the critical elements that must be measured and standardized : cycle time. Standards . work sequence. pre-start checklist and conditions. We turn Knowledge into Practices 44 .Standardise the Results Not every operation in a work process need to be standardised. Management¶s job is to ensure everyone works in accordance with the established standards. MUDA Every worker is in gemba for at least eight hours Everyone is always busy and working People moving around in a hurry or with a purpose How much of this time and energy is actually adding value? MUDA means waste There is a much deeper connotation Q GMP GMP Quality Consultants. We turn Knowledge into Practices 45 . We turn Knowledge into Practices 46 .WHY is MUDA important? Work is a series of processes or steps Starting with raw material and ending with a final product or service At each process. value is added to the product or service (In the service sector ± a document or other piece of information) Then it is sent to the next process The resources at each process ± people and machines ± either add value or it does not MUDA is any activity that does not add value Q GMP GMP Quality Consultants. MUDA in gemba is classified into the following seven categories: MUDA of overproduction MUDA of inventory MUDA of repairs / rejects MUDA of motion MUDA of processing MUDA of waiting MUDA of transport Q GMP GMP Quality Consultants. We turn Knowledge into Practices 47 . absentism 3. With expensive machines. Worried about problems such as machine failure. prioritise maximum and efficient use rather than the quantity required to fulfill sales requirements 6.I. MUDA of OVERPRODUCTION 1. Usually start with the thinking of line supervisors 2. Excess workers who may be idle. Feels urgent need to produce more than necessary just to be on the safe side 4. Tries to get ahead of the planned production schedule 5. rejects. We turn Knowledge into Practices 48 . maximize workers¶ efficiency Q GMP GMP Quality Consultants. MUDA of OVERPRODUCTION Muda What are the potential ´MUDAµ due to the Overproduction ? MUDA leads to COST & LOSSES Q GMP GMP Quality Consultants.I. We turn Knowledge into Practices 49 . We turn Knowledge into Practices 50 . MUDA of OVERPRODUCTION Muda Extra consumption of raw materials before actual sales requirement Usage of manpower and utilities (electricity.I. even adding machinery to increase capacity Increase in interest burden (cost of purchase) Additional space to store excess inventory Added transportation and administrative costs Gives people a false sense of security Helps cover up actual problems Confuses data and information that can provide clues for kaizen Cost of production increase without increase of value Potential of ³no sales´ turning into dead-stock Q GMP GMP Quality Consultants. overheads) Diversion of machinery. semi-finished products (work-in-progress). Inventories just stay there and gather dust. parts and supplies All inventory does not add value. We turn Knowledge into Practices 51 . MUDA of INVENTORY Inventories of Final products.II. Inventory adds cost to operation Q GMP GMP Quality Consultants. effort High speed production systems may cause damage to expensive jigs and machines workers assigned just to monitor and stop the machine when defects are detected. We turn Knowledge into Practices 52 .III. MUDA of REPAIRS / REJECTS Rejects interrupt production (eg need for recovery) require expensive rework may have to be scrapped waste of resources. Q GMP GMP Quality Consultants. worse cycle time Actual motion of a worker that adds value to a product is usually a few seconds. MUDA of MOTION Motion of a person¶s body that is not related to adding value Walking : does not add value Lifting : carrying or lifting heavy objects Transferring : pick up. Q GMP GMP Quality Consultants. crimping process) distance of parts and tools Not following the standard process. Sewing. We turn Knowledge into Practices 53 .IV. transfer to another hand (eg. MUDA of MOTION 1.IV. transfer position) 3. We turn Knowledge into Practices 54 . Re-arrange placement of parts / jigs / actuators (switches) Q GMP GMP Quality Consultants. Identify actual value added motion and . lean.reduce the other muda of motion 2. Observe the way operators use their a) Hands b) Legs c) Head (including eyes) d) Body (twist. jigs) 2. We turn Knowledge into Practices . MUDA of PROCESSING Processing refers to the modifying to a workpiece or a piece of information in order to add value to it and send it to the next process. Failure to synchronise process (over control of specification at some stations. Weakness in the design of products 3. Muda can be caused by: 1. relaxed in others) 55 Q GMP GMP Quality Consultants. Weakness in design of process flow 4.V. Weaknesses in the technology used (equipment. We turn Knowledge into Practices 56 . MUDA of WAITING The worker cannot do his value added work due to idling his hands.VI. body are idle interruption that stops him continuing his work workers are available for and want to work but is left waiting Q GMP GMP Quality Consultants. VI. This is most difficult to detect. MUDA of WAITING Muda can happen due to line in-balance (the previous process cannot pass parts to him) the lack of fresh parts coming to his process machine or jigs breakdown the worker¶s job is only to monitor automatic machines performing the value added job Workers waiting while a machine is doing the value added job. We turn Knowledge into Practices 57 . wrong parts are delivered line equipment set up for model changes Q GMP GMP Quality Consultants. VII. MUDA of TRANSPORT Transport is essential part of operations BUT it does not add any value to products no matter how many times or how fast we do it Isolated Island process - streamline! Reducing transportation reduces excess inventory, waiting, non-value added packing, data and mixing control, equipment and materials etc. Other MUDAs! Q GMP GMP Quality Consultants, We turn Knowledge into Practices 58 GEMBA KAIZEN will reduce the MUDAs through applying the Kaizen Cycle continuously : MUDA of overproduction MUDA of inventory MUDA of repairs / rejects MUDA of motion MUDA of processing MUDA of waiting MUDA of transport Q GMP GMP Quality Consultants, We turn Knowledge into Practices 59 GEMBA KAIZEN GEMBA means the real place ³ the place where real action occurs´ Q GMP GMP Quality Consultants, We turn Knowledge into Practices 60 targets and priorities accountable for the outcome /success allocating resources such as manpower and money exercise leadership decides the most urgently kaizen strategy listen and learn from employees in gemba provide most appropriate help to actual problems Q GMP GMP Quality Consultants.GEMBA MANAGEMENT Relationship Gemba provides product or service that satisfies customers achieves goals set by management the place to achieve real improvements kaizen is effectively implemented Management takes initiative in establishing policies. We turn Knowledge into Practices 61 . Take temporary countermeasures on the spot 4. We turn Knowledge into Practices 62 . When a problem arises (abnormality) go to gemba first 2. Standardize to prevent recurrence Q GMP GMP Quality Consultants.The Golden Rules of Gemba Management 1. Check the gembutsu (relevant objects) 3. Find the root cause 5. Go to Gemba First The Gemba Circle ± training method Nothing else matters. You must go there first. All other action is futile (MUDA) Q GMP GMP Quality Consultants. We turn Knowledge into Practices 63 .1. When you have a concern with Gemba. rejected product. returned goods. a complaining customer Gembutsu in Gemba ± find the actual root cause ³listen to gembutsu´ ³Let the gembutsu speak to me´ Using the 5 senses plus commonsense ³Be proud of the scars on your hands ³ ± Soichiro Honda Q GMP GMP Quality Consultants. Check the Gembutsu Gembutsu means something physical. tool damaged. We turn Knowledge into Practices 64 . tangible Broken down machine.2. This is a terrible MUDA. ³Do it now. Do it right away!´ Remember who and where the money earners are!! Q GMP GMP Quality Consultants. We turn Knowledge into Practices 65 . Take Temporary Countermeasure on the Spot You can always take temporary countermeasures to keep the process moving.3. Every second lost to production is lost forever. 5 WHYs Deeper statistical tools will be needed more complicated problem Gemba can provide the necessary information ³Do not jump to conclusions too fast´ ³Do not make a simple problem into a complicated crisis´ Solutions to be gotten from gemba (relevant application) o o o Q GMP GMP Quality Consultants. Find the Root Cause o Use simple analytical tools and common sense solutions e. We turn Knowledge into Practices 66 .g.4. 5 WHYs o Why are you throwing sawdust on the floor? Because the floor is slippery and unsafe o Why is it slippery and unsafe? Because there is oil on it o Why is there oil on it? Because the pump parts are leaking o Why is it leaking? Because the oil is leaking from the pump couplings o Why is it dripping? Because the rubber seals are not fiitted properly.4. We turn Knowledge into Practices 67 . Q GMP GMP Quality Consultants. standardise the new procedure All similar problem area in gemba should now follow the new standard way of working. We turn Knowledge into Practices 68 . Standardize to prevent Recurrence Once a problem has been solves. Q GMP GMP Quality Consultants. Standardisation is one way for all in gemba to benefit from the Kaizen improvements.5. Critical points and processes should be documented as standards to avoid misunderstanding. We turn Knowledge into Practices .Strategy of KAIZEN towards EXCELLENCE Improvement & Maintenance Process Focused Quality First Management By Data Next Process Is Your Customer PDCA/SDCA Concepts Customer driven Q Systems C HR D Tools People Culture TQC/CWQC/TQM TPS TPM Policy Deployment Suggestion System QIT/ICC/SGA/QCC Leadership Involvement Commitment 5S 7 QC Tools Kanban Cell Manufacturing Single Piece Flow SMED SPC Takt Time 69 Q GMP GMP Quality Consultants.