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Kaizen Management

Kaizen Management

Continuous improvement

What is Industry ?

Man-power
Machines
Materials
Methods
(4Ms, 1E)

Products
Services

What are evaluation


criteria for the output ?

KAIZEN is a feedback.

KAIZEN is a corrective
action.

KAIZEN is a Japanese word

Definitions of KAIZEN
A selection of better means or a
change of current method for
achieving an objective.
An accumulation of small
changes

The First Step is...

...To Understand Why

The Why is Simple


Work (Manufacturing/Service) processes
basically exist for one purpose and one
purpose only---To add value by transforming materials,
parts or components into
products/services that customers want and
are willing to pay for...

But...
When we add value we also add costs.
The challenge is to add value faster than we add
costs. If we add costs faster than we add value,
then
we may have to lower our price for our
products to compete in the marketplace, or
we end up losing money no matter what we
do.

So the first question to ask is-Where are the costs?


The costs are hidden in our normal way of doing
business. For example,
Inefficiencies in how we do the work
The cost of expediting orders to get them to
the customer when theyre supposed to be
there
Producing the wrong thing or producing the
right thing at the wrong time
Or producing too many or not enough

Traditional Principle of Cost


Price
Price to
to Customer
Customer

Profit

Cost to Make
Cost
Cost ++ Profit
Profit ==Price
Price

If we want to
make more profit
we increase price

Todays Principle of Cost Reduction


Price
Price to
to Customer
Customer
Profit

Cost
Cost to
to Make
Make
Price
Price-- Cost
Cost == Profit
Profit

Marketplace Pressure
If we want to
make more profit
we reduce waste
in our process

Have a Vision
A clear vision, with a strategy for achieving it,
gives a context to all subordinate activities.
Vision without action is merely a
dream.
Action without vision is just
passing time.
Vision and action can change
the world.

Vision

Joel Barker

Strategy

Vision for Excellence


Our design and production systems will be among

the best in the world with:


Short Time to Market
Short Flow Times
Short Cycle Times
High Quality
Minimum Physical Resources
(Machines, Tooling, Floor Space)
Low Inventory.

Strategy
If necessary, revise
objectives against vision

Check result
against strategy and
vision.

ACT

PLAN

CHECK

DO

Ensure plans for further


actions are consistent
with vision and
strategy.

Application of methods,
tools and actions gives
a result.

IfIfthe
thevision
visionisnt
isntclear,
clear,and
andthe
thestrategy
strategyand
andobjectives
objectivesdont
dont
support
supportit,
it,how
howcan
canyou
youCheck
Checkyour
yourresults?
results? You
Youhave
haveno
no
way
wayof
ofknowing
knowingififyou
youare
aremoving
movingforward.
forward.

3 Core Competencies
1. Detailed customer/market knowledge and focus.
2. Large-scale quality/productivity campaign.
3. Lean, efficient design and manufacturing - falls under the
"must be very good" category.
We can secure our future if we do this well.
Lean, efficient design and manufacturing is key to winning markets.
It is key to great margins on the exports.
It is key to market success of the domestic consumer products.

We must get to lean fast - with velocity.

Why To Create a Lean Enterprise?


Business Realities
- Cost Pressures
Hold sales prices down
Cost of doing business is increasing
- Time Pressures
Increased demands for faster customer
response
Longer cycle times cost more
- Quality Pressures
Competitor six sigma challenge
Customer Expectation

Lean is...
A set of principles, concepts and techniques
designed for a relentless pursuit in the
elimination of waste. Producing an efficient justin-time production system, that will deliver to our
customers
exactly what they need,
when they need it,
in the quantity they need,
in sequence,
without defects,
and at the lowest possible cost.

A Lean System is Built on Principles


Takt-time
production paced
to the customers
rate of demand

These principles will lead to:


Increased production volume

ed
Ne

in
st e
u
J im
T

One-piece flow
produces products
continuously without
interruption

low
F
e
iec
p
eOn
y
ad
e
R
dy
a
Re

ll P
u
P

ti
uc
d
ro

on

Pull production
builds a product only
when the customer
has asked or
pulled for it

Faster customer response


Higher quality
More efficient space utilization
Lower costs

Elements of a Lean Production System


Standard
Work

People

JUST IN TIME

Takt Time
Production

JIDOKA
Stop at every abnormality

JIT means you get what you


need, where and when you
need it.
By reducing the overall flow
time of our products, we can
reduce many of the
associated costs of
production, such as
inventory holding costs, and
improve overall quality.

People using standard work to produce a product at a pace


that matches the rate of customer demand takt time.

Materials

Standard WIP
Kanban

One-Piece
Flow

A standard quantity of materials to keep everyone in the


process operating, and a signal, which can tell you to
build one more, will permit one-piece flow.

Machines

Operational
Availability
Andon

Pull
Production

Machines available when you need them, and a signal to tell


you when theres a problem. Once a predictable pace of
production, one-piece flow and reliable machinery are in
place, a pull production environment can be achieved.

We can achieve high quality


processes and products by:
stopping production anytime
a defect is detected,
designing reliable processes
and machinery to prevent
defects from occurring in the
first place, and separating
human work from machine
work so people perform work
that requires decision-making
and problem solving skills.
Doing these, we can eliminate
rework, scrap and lost
production time.

Leveled Production
Sort

Simplify

Sweep

Standardize

Self-Discipline

Lean Manufacturing Kaizen Sequence


To Get Here

ay

Pull
System Kaizen

Go

Thi
sW

Equipment Kaizen
Autonomation
Factory Layout Kaizen
Flow Production
Factory Kaizen
Observe Operator Methods & Create Standard Work

Start Here

1. Sort

5. Self-Discipline
2. Simplify
3. Sweep

4. Standardize

10 Hints for Doing Successful Kaizen


1.

Excuses

No Excuses: Dont make excuses.... Dont accept excuses...


Explanations are often still excuses (If you have time to make up
excuses, you have time to think of improvement ideas!)

2.

Dont be a concrete or titanium head: Throw out traditional


concepts.... Think how a new method can work, not how it wont. (Switch
your mind yourself if you feel you are being a concrete head !)

3.

Do Kaizen by getting your hands dirty on the shop floor:


vs.

4.

All information necessary for Kaizen is available on the shop floor..... You
can not understand a process until you observe and do it first hand.

Quick and crude is better than slow and elegant:


vs.

5.

Dont seek perfection......50% Improvement Rate is fine, as long as it is


done on the spot.

Produce actual improvement :


VS.

Observe actual gains.....Simulation and Ideas are NOT REAL until they
are implemented, observed and maintained. .

6.

Implement Kaizen Newspaper items as committed: Dont

TO
DA
Y

put off Kaizen until tomorrow.

Do Kaizen by adopting ideas of workers: Put yourself in the

7.
8.

workers position.....The ideas of 10 people are better than the knowledge of one.

Do Kaizen without spending lots of money: Many small

VS.

9.

improvements add up to big results..... Implement quickly with less risk.

Dont overlook even the smallest waste (Muda):

MU
DA

MUDA

MT WT F

10.

Ask why? five times..... Many small improvements add up to big results...
Implement quickly with less risk.... Increased opportunity and
frequency to learn.

Document results on Target Progress Report: Document and


Report Results at Regular Report Outs. fill in the condition even if there has
been no change.

Do Kaizen HONESTLY with the spirit of Yes, I will try!

Yoshio Oba

The Next Step Is

To Understand and Do It

The way of packing oranges


in Japan

Orange Packing (1)


It is difficult to open a net and put
oranges in the net at the same time.

I need
help.

Productivity: 1 net per min.

Orange Packing (2)


Cooperation increases a work efficiency.

Productivity: 5 nets per min.

A selection of better means or a


change of current method for
achieving an objective.

Can you think of a better


method to pack oranges?

Productivity: 10 nets per min.


1

When a waitress served a glass of water,


she placed the glass strongly on the table.
Hold the glass with care.
Place the glass with care.
Treat customers from your heart.
Change the way of
holding the glass

Hold the bottom of the glass.


Support the glass with a little finger.
Touch the little finger to the table.

Do not give customers


uncomfortable feelings!
When you hang up the telephone, put it
smoothly with an appreciation to the
customer.
Since the customer pays your salary,
hang up your telephone receiver politely.
You must teach a way of accomplishing
the job.

Telephone

KAIZEN
- Quality Control Circles
- Suggestion System
- Just-in-time
- TQC (Total Quality Control)
- Total Productive
maintenance
- 5 S Kaizen

- Cooperative LaborManagement relationship

- Small-group activities
- Productivity Improvement
- Quality Improvement
- New product development
- Zero Defect (ZD)

The Kaizen Umbrella

When a waitress served a glass of water,


she placed the glass strongly on the table.
Hold the glass with care.
Place the glass with care.
Treat customers from your heart.
Change the way of
holding the glass

Hold the bottom of the glass.


Support the glass with a little finger.
Touch the little finger to the table.

KAIZEN Steps
- Abolition
- Discontinuance
- Exclusion
- Removal
- Simplification
- Centralization
- Synchronization
- Standardization
- Management for exceptions
- Integration
- Combination
- Alternation
- Exchange
- Conversion
- Diversification
- Separation

Elimination

Remove this
sliding door

What is the use of the sliding


doors?

KAIZEN by Elimination
Why are shoes box doors needed?

Before

After
1

KAIZEN by Elimination

No sleeves down-jacket is easy to work.

Before

After

Reduce

A fluorescent light
bulb was removed.

The number of fluorescent light


were reduced.

KAIZEN by Reduction
Are two bricks needed
to stop a car?

Before

Parking Lot

KAIZEN by Reduction
One brick is enough
to stop a car.

Before

After

Zebra Zone

KAIZEN by Reduction
Side lines of
the zebra zone
are removed.
Before

After

KAIZEN by Reduction
A brush part of the toothbrush is
not necessarily long.

Before

After
1

Change

By watching the ribbon movement,


one can recognize that the air
conditioner is working.

KAIZEN by Change
The hollow about the key hole
smoothes the key movement.

Before

After
1

KAIZEN by Change
To oil the pan, a small teapot is
more convenient than a ladle.

Before

After

KAIZEN by Change
Stairways at the railway station
should have signs of up and down.

Before

After
1

At JR Kurume Station

Rush Hour

KAIZEN by Change
The shape of the handing strap
fits the hand.

Before

After

Hanging Straps
in trains

Hanging strap in
Hong Kong
subways

to Suggestion System

Contents

Objective: Read the gauge to


keep the liquid level constant.

Exercise (1)

Exercise (2)

Exercise (3)

Exercise (4)

Exercise (5)

Exercise (6)

Exercise (7)

Suggestion System
You suggest your ideas, and I will
examine them and implement some
of your ideas later.

Idea

Idea

Reward

Suggestion System
Concept

KAIZEN System
Implemented ideas must be submitted

N
IZE
A
K eet
sh

Suggestion System
Workers
responsibility

Management responsibility

Workers responsibility

Management
responsibility

KAIZEN System
Difference (1)

Suggestion system
Propose improvement ideas for
any activity in the company.

KAIZEN system
Propose only improvement ideas
which will improve your own work.
Difference (2)

KAIZEN
Memo

AOTS Kaizen
KAIZEN

AOTS KAIZEN

Different styles of change


1. Small change --- By individual effort, a better

way of proceeding a job is


considered. (Idea creation)

(KAIZEN)

2. Medium change --- By group effort, a better way


(Small group
activities)

3. Big change
(Innovation)

is proposed by following
predetermined steps (or rule).

--- By investments in new technology


or equipment, dramatic alterations
are achieved.
2

THANK YOU