Modern Trends in Manufacturing

Chapter 4
Continuous Process Improvement
1. Continuous Improvement or Kaizen:
Continuing improvement is a Japanese philosophy involving small changes throughout all areas in an
organization. This continuous improvement is also termed as Kaizen. When applied to the workplace Kaizen
involves all employees - from executives to laborers, and everyone in between. It has been used as a way to
improve production efficiency as well as improve employee morale and safety. Massaki Imai, the chairman of
the Cambridge Corporation, an international management consultancy firm based in Tokyo, propound this
useful technique in 1986.
Kaizen (Ky zen) is a Japanese term that means continuous improvement, taken from words 'Kai', which
means change or improvement and 'zen' which means good. Thus combining the two phrases, means good
change or continual improvement.
Kaizen means improvement, continuous improvement involving everyone in the organization from top
management, to managers then to supervisors, and to workers. In Japan, the concept of Kaizen is so deeply
engrained in the minds of both managers and workers that they often do not even realize they are thinking Kaizen
as a customer-driven strategy for improvement. This system emphasizes the elimination of wastes at the
workplace (gemba) This philosophy assumes according Imai that our way of life be it our working life, our
social life or our home life deserves to be constantly improved
Improvements through Kaizen have a process focus. Kaizen generates process-oriented thinking, is
people-oriented, and is directed at people's efforts. Rather than identifying employees as the problem, Kaizen
emphasizes that the process is the target and employees can provide improvements by understanding how their
jobs fit into the process and changing it. Kaizen evolves around continuous improvement involving everyone in
the organization and largely depends on cross-functional teams that can be empowered to challenge the status.
And also Improvement begins with the admission that every organization has problems, which provide
opportunities for change.

2. Tools for continuous improvement:

Measurements drive both behavior and focus of projects. It can be confirmed whether the expected improvement
has taken place or not only if the correct and appropriate tools of measurement is used.
1. The seven quality control tools
2. 5- Analysis- The why concept
3. Approach to continuous improvement. ( PDCA Cycle)
I.

The seven quality control tools

QC tools are the means for collecting data , analyzing data , identifying root causes and measuring the
results. Most of these tools are related to numerical DATA processing.

Pareto Diagram

i.

Pareto Diagram

A Pareto diagram is a combination of bar and line graphs of

(No. of Occurrences)

accumulated data, where data associated with a problem are divided

into smaller groups by cause or by phenomenon and sorted, for
example, by the number of occurrences or the amount of money
involved. (The name Pareto came from an Italian mathematician
who created the diagram.)

urrences)

Usage:

Used to identify and prioritize a problem.

Used to review the effects of an action taken
Used during phases to monitor the situation, analyze causes, and review effectiveness of an action
Results

Allows clarification of important tasks.

Allows identification of a starting point (which task to start with).
Allows projection of the effects of a measure to be taken.
II.

Cause & Effect Diagram

A cause and effect diagram is a fish-bone diagram or Ishikawa diagram that presents a systematic
representation of the relationship between the effect (result) and affecting factors (causes). Solving a
problem in a scientific manner requires clarification of a cause and effect relationship, where the effect (e.g.,
the result of work) varies according to factors (e.g., facilities and machines used, method of work, workers,
and materials and parts used). To obtain a good work result, we must identify the effects of various factors
and develop measures to improve the result accordingly.

Usage:
Used when clarifying a cause and effect relationship.[Used during a phase to analyze causes.]
Used to develop countermeasures
Results:
Can obtain a clear overall picture of causal relation. (A
change in the cause triggers a variation in the result.) Can
clarify the cause and effect relationship.
Can list up all causes to identify important causes.
Can determine the direction of action (countermeasure.

Smudges on the
copied surface
Internal devices not
working smoothly

Quality of
Copying Paper

Malfunction of
the roller
Printing too
lightly

Running out
of stock
Too thin

Deterioration of
Error in
performance due
placement of
to high
paper (setting
temperatures
its face up)

Keyboard handling
error
Error in selecting a
scale of reduction

User

Dampened

Folded

Error in
selecting
shading

Nicotinestained

Dirt on the
glass
surface
Dust

Surrounding
Environment

Many Copying Errors!

Mechanism of
Copying Machine

III.

Stratification
Stratification means to divide the whole into smaller portions according to certain criteria. In case of
quality control, stratification generally means to divide data into several groups according to common factors
or tendencies (e.g., type of defect and cause of defect).
Number of Units

Usage:

Used to observe variations among data.

Used to identify the relationship between cause and effect.
Used to identify a purpose and means to serve the purpose
Results:

Allows observation of variations among strata.

By performing a cause analysis using the stratified data, the following can
be accomplished 1.Identification and control of a problem,
2.Division of data (obtained by using each QC tool) into several groups

IV.

Check Sheet
A check sheet is a sheet designed in advance to allow easy collection and aggregation of data. By just
entering check marks on a check sheet, data can be collected to extract necessary information, or a thorough
inspection can be performed in an efficient manner, eliminating a possibility of skipping any of the required
inspection items. A check sheet is also effective in performing stratification (categorization).

Check Sheet

Usage:
Used to collect data.
Used when performing a thorough inspection.

Day
Process
Process 1
Process 2
Process 3

Results:
Ensures collection of required data.
Allows a thorough inspection of all check items.

Can understand tendencies and variations. Can record

required data.

V. Control Chart / Graph

A control chart is used to examine a process to see if it is stable or to maintain the stability of a process. This
method is often used to analyze a process. To do so, a chart is created from data collected for a certain period
of time, and dots plotted on the chart are examined to see how they are distributed or if they are within the
established control limit. After some actions are taken to control and standardize various factors, this method
is also used to examine if a process is stabilized by these actions, and if so, to keep the process in a stable
state.
Usage:

 Used to observe a change caused by elapse of time

Used during phases to monitor the situation, analyze causes,
review effectiveness of an action, perform standardization, and
implement a selected control measure.
Results
Can identify a change caused by elapse of time.
Can judge the process if it is in its normal state or there are some
anomalies by examining the dots plotted on the chart.

Control Chart
Histogram
Standard
Range

X Axis (Values

x-R Control Chart

Actually

Range of
Variations

Measured)

Graphs:
A graph is a graphical representation of data, which allows a person to understand the meaning of these data
at a glance. Unprocessed data simply represent a list of numbers, and finding certain tendencies or
magnitude of situation from these numbers is difficult, sometimes resulting in an interpretational error. A
graph is a effective means to monitor or judge the situation, allowing quick and precise understanding of the
current or actual situation. A graph is a visual and summarized representation
Scatter Diagram
of data that need to be quickly and precisely conveyed to others.
Axis

Abrasion

VI.

x Axis

Number of
Rotations

Histogram
When creating a histogram, a range of data is divided into smaller sections
having a uniform span,and the number of data contained in each section (the
number of occurrences) is counted to develop a frequency distribution table.
Then, a graph is formed from this table by using vertical bars, each having
the height proportional to the number of occurrences in each section.
Usage:

Used to assess the actual conditions.

Used to analyze a process to identify a problem point that needs to be improved by finding the
location of the mean value or degree of variations in the graph.
Used to examine that the target quality is maintained throughout the process.
Results:
Can identify the location of the mean (central) value or degree of variations.
Can find out the scope of a defect by inserting standard values.
Can identify the condition of distribution (e.g., whether there is an isolated, extreme value).
VII.

Scatter Diagram
A scatter diagram is used to examine the relationship between the two, paired, interrelated data types, such
as height and weight of a person. A scatter diagram provides a means to find whether or not these two data
types are interrelated. It is also utilized to determine how closely they are related to identify a problem point
that should be controlled or improved.
Usage:
Used to identify a relationship between two matters.
Used to identify a relationship between two matters and establish countermeasures based on their cause
and effect relation.
Results:
Can identify cause and effect relation.
Can understand the relationship between two results.

To sum up 7 QC tools (Numerical data ) are used as follow:

Pareto Diagram
Cause and Effect Diagram
Stratification
Check Sheet
Control Chart/Graph
Histogram
Scatter Diagram

To identify the current status and issues

To identify the cause and effect relationship
Basic processing performed when collecting data
To record data collection
find anomalies and identify the current status
To see the distribution of data
To identify the relationship between two things

2. Five Whys analysis

Five whys is a Root Cause Analysis Tool. Not a problem solving technique. The outcome of a 5 Whys analysis
is one or several root causes that ultimately identify the reason why a problem was originated.

Even though the discipline is called 5 Whys is not always necessary to reach 5 before the root cause of a
problem is fully explained; or it may take more than 5 whys to get to the bottom of it. It will depend on the
complexity of the process or the problem itself. In any case, 5 has been determined, as a rule of thumb, as the
number at which most root causes are clearly identified. The "5" in the name derives from an empirical
observation on the number of iterations typically required to resolve the problem.)
Any 5 Whys must address two different problems at the same time. The first part is related to the process that
made the defective part. The second one must address the detection system that was not able to detect the
defective part before it became a problem. The lack of detection of a defective product is a problem of its own
and must be treated independently than the product problem itself.
Taking an example,
The vehicle will not start. (the problem)
Why? - The battery is dead. (first why)
Why? - The alternator is not functioning. (second why)
Why? - The alternator belt has broken. (third why)
Why? - The alternator belt was well beyond its useful service life and not replaced. (fourth why)
Why? - The vehicle was not maintained according to the recommended service schedule. (fifth why, a
root cause)
The questioning for this example could be taken further to a sixth, seventh, or higher level, but
five iterations of asking why is generally sufficient to get to a root cause. The key is to encourage the troubleshooter to avoid assumptions and logic traps and instead trace the chain of causality in direct increments from

the effect through any layers of abstraction to a root cause that still has some connection to the original
problem. Note that, in this example, the fifth why suggests a broken process or an alterable behaviour, which
is indicative of reaching the root-cause level.
It is interesting to note that the last answer points to a process. This is one of the most important aspects in the 5
Why approach - the real root cause should point toward a process that is not working well or does not exist.
Untrained facilitators will often observe that answers seem to point towards classical answers such as not enough
time, not enough investments, or not enough manpower. These answers may be true, but they are out of our
control. Therefore, instead of asking the question why?, ask why did the process fail?
A good way to identify if the 5 Whys was done properly is to try to organize the collected data in one sentence
and define it in an understandable manner. If this cannot be done or the sentence is fragmented or meaningless
chances are that there is gap between one or several of the whys. You then must revisit the 5 Why and identify
those gaps to fill them in. If there is coherence in the way that the sentence is assembled, it shows consistency on
the thought process. Something like: Problem Description occurred due to Fifth Why. This was caused by
Fourth why mainly because Third Why was allowed by Second why, and this led to First Why.
3. PDCA Cycle:
Plan-Do-Check-Act Cycle is often referred to as the Deming Cycle or the Deming Wheel after its proponent, W
Edwards Deming. It is also sometimes called the Shewhart Cycle. Deming is best known as a pioneer of the
quality management approach and for introducing statistical process control techniques for manufacturing to the
Japanese, who used them with great success. He believed that a key source of production quality lay in having
clearly defined, repeatable processes. And so the PDCA Cycle as an approach to change and problem solving is
very much at the heart of Deming's quality-driven philosophy.
The four phases in the Plan-Do-Check-Act Cycle involve:
Plan: Identifying and analyzing the problem.
Do: Developing and testing a potential solution.
Check: Measuring how effective the test solution was, and analyzing whether it could be improved in any
way.
Act: Implementing the improved solution fully.

In a further detailed way, PDCA cycle can be represented as follows:

S
t
a
r
t

How to Use the Tool

3.
2.
Id
Anal
1. yzePLANen 4.
Sel curr
tif Gen
9.
ect ent
y erat
Mon
im situ
ro 5.e
CHECK
8.
Ma
itor;
pro atio
ot and
6.
Ado
p
7.
ve n or
ca cho
An
pt,
out
hol
Dra
me proc
us ose
aly
Ada
an
d
w
nt ess
es solu
ze
pt
or
d
the
op
tion
the
Aba
im
gain
con
por
s
ple
sndo clu
tun
res me
ityn sio
ult
nt
ns
s
a
tri
al
ru
n

The PDCA Cycle encourages you to be methodical in your approach to problem solving and implementing
solutions. Follow the steps below every time to ensure you get the highest quality solution possible.
Step 1: Plan: First, identify exactly what your problem is. You may find it useful to use tools like Drill Down,
Cause and Effect Diagrams, and the 5 Whysto help you really get to the root of it. Once you've done this, it
may be appropriate for you to map the processthatis at the root of the problem. Next, draw together any other
information you need that will help you start sketching out solutions.
Step 2: Do: This phase involves several activities:
Generate possible solutions.
Select the best of these solutions, perhaps using techniques like Impact Analysisto scrutinize them.
Implement a pilot project on a small scale basis, with a small group, or in a limited geographical area,
or using some other trial design appropriate to the nature of your problem, product or initiative.
Step 3: Check: In this phase, you measure how effective the pilot solution has been, and gather together any
learnings from it that could make it even better. Depending on the success of the pilot, the number of areas for
improvement you have identified, and the scope of the whole initiative, you may decide to repeat the "Do"
and "Check" phases, incorporating your additional improvements. Once you are finally satisfied that the costs
would outweigh the benefits of repeating the Do-Check sub-cycle any more, you can move on to the final
phase.
Step 4: Act: Now you implement your solution fully. However, your use of the PDCA Cycle doesn't
necessarily stop there. If you are using the PDCA or Deming Wheel as part of a continuous improvement
initiative, you need to loop back to the Plan Phase (Step 1), and seek out further areas for improvement.
When to use the Deming Cycle
The Deming Cycle provides a useful, controlled problem solving process. It is particularly effective for:

 Helping implement Kaizen or ContinuousImprovement approaches, when the cycle is repeated again
and again as new areas for improvement are sought and solved.
Identifying new solutions and improvement to processes that are repeated frequently. In this situation,
you will benefit from extra improvements built in to the process many times over once it is
implemented.
Exploring a range of possible new solutions to problems, and trying them out and improving them in
a controlled way before selecting one for full implementation.
Avoiding the large scale wastage of resources that comes with full scale implementation of a poor
solution.
Example of a PDCA Cycle implementation
Lets take a simple example: A factory that produces aluminum pieces.
We assume that the company has introduced a continuous improvement system, based on the PDCA cycle in
conjunction with other tools (such as Lean, Six Sigma , 5S or Kaizen ). Applying the continuous
improvement could happen the following:
1 ) Potential improvements are searched and analyzed, either because there have been detected problems,
because the workers have proposed a different way to perform some task, because the market offers more
efficient machines that would save costs, etc. .
2) The potential improvements and its impact are studied. We choose the improvements that can work better
and we decided to implement them in a small-scale pilot test.
3) Once finished the on the pilot test, it is verified that the changes work correctly and that they archive the
desired result. If the changes do not meet expectations, they have to be modified to work as expected.
4) Finally, if the results are satisfactory, the improvements will be implanted on a large scale in the production
line of the factory.
Once completed and implanted the improvements, the activities in the factory aluminum pieces will work more
efficiently. However, in the future we should reapply the Deming Cycle periodically.

3. Kaizen vs. Innovation

Kaizen vs. innovation could be referred to as the gradualist-approach vs the great-leap-forward approach.
Japanese companies generally favor the gradualist approach and Western companies favor the great-leap
approach, which is an approach epitomized by the term innovation. Innovation is characterized by major changes
in the wake of technological breakthroughs, or the introduction of the latest management concepts or production
techniques. Kaizen, on the other hand, is un-dramatic and subtle, and its results are seldom immediately visible.
Kaizen is continuous while innovation is a one-shot phenomenon. Further, innovation is technology and moneyoriented whereas Kaizen is people- oriented.

In the West, a middle manager can usually obtain top

management sup port for innovative projects because
they offer return on investment benefits that managers
can hardly resist. However, when a factory manager
wishes to make small changes in the way his workers
perform a task, obtaining management support can be
difficult.
Kaizen does not call for a large investment to implement
it, but it does call for a great deal of continuous effort and commitment. To implement Kaizen, you need only
simple, conventional techniques. Often, common sense is all that is needed. On the other hand, innovation
usually requires highly sophisticated technology, as well as a huge investment.
If you look at a diagram of Kaizen vs. Innovation, Kaizen is a constant slope, while innovation is a staircase.
Often, innovation does not bring the staircase effect, however, because it lacks the Kaizen strategy to go along
with it. Once a new system has been installed as a result of new innovation, it is subject to steady deterioration
unless continuing efforts are made to first maintain it and then improve on it. There is no such thing as static or
constant. All systems are subject to deteriorate unless a continuing effort is made to maintain or improve, as you
can see in the figure below.

The worst companies are those that do nothing but maintenance (no internal drive for Kaizen OR innovation).
Improvement by definition is are slow, gradual and often invisible with effects that are felt over the long run. In a
slow-growth economy, Kaizen often has a better payoff than innovation does. For example: it's difficult to
increase sales by 10% but it's not so difficult to cut manufacturing costs by 10%. Kaizen requires virtually
everyone's personal efforts and the knowledge that with that effort and time, improvements will be made.
Management must make a conscious and continuous effort to support it. It requires a substantial management
commitment of time and effort. Investing in Kaizen means investing people, not capital.
In short it can be tabulated as follows:

4. Kaizen -The three pillars

According to Imai, a guru in management philosophies and practices , the three pillars of kaizen are summarized as
follows:

a. Housekeeping (5 S)
b. Waste elimination ( 7 wastes)

c. Standardization (PDCA Cycle)

a. Housekeeping

This is a process of managing the work place ,known as Gemba (workplace ) in Japanese, for
improvement purposes .Imai introduced the word Gemba , which means real place, where value is
added to the products or services before passing them to next process where they are formed.
For proper housekeeping a valuable tool or methodology is used , the 5S methodology. The term Five S
is derived from the first letters of Japanese words referred to five practices leading to a clean and
manageable work area: seiri (organization), seiton (tidiness), seiso (purity), seiketsu (cleanliness), and
shitsuke (discipline). The English words equivalent of the 5S's are sort, straighten, sweep, sanitize, and
sustain. 5S evaluations provide measurable insight into the orderliness of a work area and there are checklists
for manufacturing and non- manufacturing areas that cover an array of criteria as i.e. cleanliness, safety, and
ergonomics. Five S evaluation contributes to how employees feel about product, company, and their selves
and today it has become essential for any company, engaged in manufacturing, to practice the
5S's in order to be recognized as a manufacturer of world-class status.
On the following table the 5S approach is presented briefly for each one from the five activities
Seiri

Seiton

Seiso
Seiketsu
Shitsuke

SORT what is not needed. Use the red tag system of tagging
items considered not needed, then give everyone a chance to
indicate if the items really are needed. Any red tagged item for
which no one identifies a need is eliminated (sell to employee, sell
to scrap dealer, give away, put into trash.
STRAIGHTEN what must be kept. Make things visible. Put tools
on peg board and outline the tool so its location can be readily
identified. Apply the saying "a place for everything, and everything a
place.
SCRUB everything that remains. Clean and paint to provide a
pleasing
SPREAD the clean/check routine. When others see the improvements
in the Kaizen area, give them the training and the time to improve
their work area.
STANDARDIZATION and self-discipline. Established a cleaning
schedule.

As some of the benefits of employees of practicing the five S could be referred to as follows: Creates
cleanliness, sanitary, pleasant, and safe working environments; it revitalizes Gemba and greatly improves
employee morale and motivation; it eliminates various kinds of waste by minimizing the need to search for
tools, making the operators' jobs easier, reducing physically strenuous work, and freeing up space; it creates a
sense of belonging and love for the place of work for the employees.
This concept of 5S can also be tabulated as follows for better understanding:

b. Waste (Muda) elimination.

Muda in Japanese means waste. The resources at each process people and machines either add value or
do not add value and therefore ,any non-value adding activity is classified as muda in Japan. Work is a series
of value-adding activities, from raw materials ,ending to a final product. Muda is any non-value-added task.
To give some examples ,there are presented here Muda in both manufacturing and office settings described
below
Muda in Manufacturing

Muda in Office

Shipping defective parts

Passing on work that contains errors

Waiting for inspection

Signature approvals, bureaucracy

Walking or routing documents
Copies, files, a lot of papers Excess
documentation

Walking and transporting parts

Overproduction
Excess inventory which hides

In Kaizen philosophy, the aim is to eliminate the seven types of waste (7 deadly wastes ) caused by
overproduction, waiting, transportation, unnecessary stock, over processing, motion, and a defective
part, and presented on the following table ,in summary
1. Overproduction Production more than production schedule
2. Inventory Too much material ahead of process hides problems
3.Defects Material and labor are wasted; capacity is lost at bottleneck
4.Motion Walking to get parts because of space taken by high WIP
5.Processing Protecting parts for transport to another process
6.Waiting Poor balance of work; operator attention time
7. Transportation Long moves; re-stacking; pick up/put down
So muda (waste) elimination will cover the categories described as follows:

i. Muda of overproduction. Overproduction may arises from fear of a machine's failure, rejects, and
employee absenteeism. Unfortunately, trying to get ahead of production can result in : tremendous waste,
consumption of raw materials before they are needed, wasteful input of manpower and utilities, additions of
machinery, increased burdens in interest, additional space to store excess inventory, and added transportation
and administrative costs.
ii. Muda of inventory. Final products, semi finished products, or part supplies kept in inventory do not add
any value. Rather, they add cost of operations by occupying space, requiring additional equipment and
facilities such as warehouses, forklifts, and computerized conveyer systems .Also the products deteriorate in
quality and may even become obsolete overnight when market changes or competitors introduce a new product
or customers change their taste and needs. Warehouses further require additional manpower for operation and
administration. Excess items stay in inventory and gather dust (no value added), and their quality deteriorates
over time. They are even at risk of damage through fire or disaster. Just-in-time (JIT) production
system helps to solve this problem .
iii. Muda of defects (repair or rejects). Rejects, interrupt production and require rework and a great
waste of resources and effort .Rejects will increase inspection work, require additional time to repair, require
workers to always stand by to stop the machines, and increase of course paperwork.
iv. Muda of motion. Any motion of a persons not directly related to adding value is unproductive. Workers
should avoid walking, lifting or carrying heavy objects that require great physical exertion because it is
difficult, risky, and represents non-value added activities. Rearranging the workplace would eliminate
unnecessary human movement and eliminate the requirement of another operator to lift the heavy objects.
Analysis of operators' or workers leg and hand motions in performing their work will help companies to
understand what needs to be done.
v. Muda of processing. There are many ways that muda can happen in processing. For example, failure to
synchronize processes and bottlenecks create muda and can be eliminated by redesigning the assembly lines
so, utilizing less input to produce the same output. Input here refers to resources, utilities, and materials.
Output means items such as products, services, yield, and added value. Reduce the number of people on the
line; the fewer line employees the better. Fewer employees will reduce potential mistakes, and thus create
fewer quality problems. This does not mean that we need to dismiss our employees. There are many ways to
use former line employees on Kaizen activities, i.e., on value-adding activities. When productivity goes up,
costs will go down. In manufacturing, a longer production line requires more workers, more work-in-process
and a longer lead-time. More workers also means a higher possibility of making mistakes, which leads
to quality problems. More workers and a longer lead-time will also increase cost of operations.
Machines that go down interrupts production. Unreliable machinery necessitates batch production, extra
work-in-process, extra inventory, and extra repair efforts. A newly hired employee without proper training to
handle the equipment can consequently delay operation, which may be just as costly as if the equipment
were down. Eventually, quality will suffer and all these factors can increase operation costs.
vi. Muda of waiting. Muda of waiting occurs when the hands of the operator are idle; when an operator's work
is put on hold because of line imbalances, a lack of parts, or machine downtime; or when the operator is simply
monitoring a machine as the machine performs a value-adding job. Watching the machine, and waiting for
parts to arrive, are both muda and waste seconds and minutes. Lead time begins when the company pays for its
raw materials and supplies, and ends when the company receives payment from customers for products
sold. Thus, lead time represents the turnover of money. A shorter lead time means better use of resources,
more flexibility in meeting customer needs, and a lower cost of operations. Muda elimination in this area
presents a golden opportunity for Kaizen. There are many ways to cut lead time. This can be done through

improving and speeding up feedback from customer orders, having closer communications with suppliers, and
by streamlining and increasing the flexibility of Gemba operations.
Another common type of muda in this category is time. Materials, products, information, and documentation
sit in one place without adding value. On the production floor, temporary muda takes the form of inventory. In
office work, it happens when documents or pieces of information sit on a desk or in trays or inside computer
disks waiting to be analysed, or for a decision or a signature.
vii. Muda of transortation In workplace ,gemba, one notices all sorts of transport by such means as
trucks, forklifts, and conveyors. Transportation is an essential part of operations, but moving materials or
products adds no value. Even worse, damage often occurs during transport. To avoid muda, any process that is
physically distant from the main line should be incorporated into the line as much as possible,
Because eliminating muda costs nothing, muda elimination is one of the easiest ways for a company to
improve its Gemba's operations.

c. Standardization
Standards are set by management, but they must be able to change
when the environm-ent changes.
Companies
can achieve dramatic improvement as reviewing the standards periodically, collecting and
analysing data on defects, and encouraging teams to conduct problem-solving activities. Once the standards
are in place and are being followed then if there are deviations, the workers know that there is a problem. Then
employees will review the standards and either correct the deviation or advise management on changing
and improving the standard. It is a never-ending process and is better explained and presented by the PDCA
cycle(plan-do-check-act), known as Demming cycle.
The management plans, each employee follow the planned activities, the inspector check, and the
management correct or secure every step, systematically. It is important to be seen that each one employee
follows his own PDCA cycle.
Standardize on new process (Write standards, Train, Foolproof, Quality-At-The-Source (QUATS). A
successful PDCA cycle then is followed by the SDCA cycle where S stands for standardization and
maintenance of the new situation. So, PDCA stands for improvement and SDCA stands for maintenance .The
two cycles are combined and presented on the figure.
Standardization process is a very important one that has few key features, presented below:
Represent the best, easiest, and safest way to do the job,
Offer the best way to preserve know-how and expertise,
Provide a way to measure performance,
Show the relationship between cause and effect,
Provide a basis for both maintenance and improvement,
Provide objectives and indicate training goals,
Provide a basis for training,
Create a basis for auditing or diagnosis, and
Provide a means for preventing recurrence of errors and minimizing variability.

5. Quality Circles:
Kaizen can operate at the level of an individual, or through
Kaizen Groups or Quality Circles which are groups specifically
brought together to identify potential improvements.
A quality circle is a volunteer group composed of workers (or

even students), usually under the leadership of their supervisor (or an elected team leader), who are trained to
identify, analyze and solve work-related problems and present their solutions to management in order to
improve the performance of the organization, and motivate and enrich the work of employees
Major Attributes to Quality Circle
1. Quality Circle is a form of participation management.
2. Quality Circle is s human resource development technique.
3. Quality Circle is a problem solving technique.
Objectives of Quality Circle:
1. Change in Attitude
2.Self Development
3. Development of Team Spirit

4. Improved Organizational
5. Culture Positive Working Environment
8 Steps in Quality circles:
1. Problem Identification
2. Problem Selection
3. Problem Analysis
4. Generate Alternative Solutions
5. Select the most appropriate solution
6. Prepare plan of action
7. Present solution to management circle members present solution to management for approval
8. Implementation of solution

6. Kaizen and suggestion systems

Through suggestions, employee participate in continuous improvements activities in the workplace and
play a vital role in upgrading standards. Employee suggestions or ideas to management systems serve a
duality of purpose. At one and the same time serving as a productivity enabler as well as a culture change
enabler.
Benefits of suggestion system
I. Improves employer-employee relation
II. Is an employee benefit scheme
III. Tents to increase morale of the workplace
IV. Acts as a good means of communication
V. Commits the workplace to take active interest in their work and company
VI. Provides management with an organized way of handling their ideas
Procedure for introducing suggestion system
1. Introduction:
In introducing and operating an employee suggestion scheme, it is necessary for management to
formulate the following principles:
The employees are intelligent enough to think constructively about their jobs.
There is always room for improvement in the company operations.
The management can gain from the ideas of employees.
The employees can contribute more than just a day's work.
2. Receiving suggestions:
The suggestions are received through:
Suggestion box:
It is an invitation to employees to share their ideas to improve the functioning of the organization. Here,
employees put forth their views and suggestions in a box. Once in a week or as per the company's policies,
suggestions are reviewed. If suggestions are rejected, it should be communicated with proper explanation.
Attitude survey:
These surveys are extremely useful to understand the state-of-art and appreciation of the future direction of
the organization. Since the participants do not have to reveal their identity, this is seen as a good
opportunity to share views, feelings, likes, dislikes and opportunity to share views freely. These surveys are
efficient as sufficient data can be generated at low cost and within a short duration. They can also be useful
for establishing trends if they are done at frequent interval.
Exit interview:
Some organizations have a policy of having a discussion with employees who have left or are on the verge
of leaving the organization since such employees can freely discuss impressions and opinions on a variety
of organizational aspects. If conducted well, it can generate some very useful information that can be used
to improve the functioning of the organization.
Quality circles:
Quality circles promotes team work and provide scope of interaction among employees for sharing their
ideas, joint decision making, logical and systematic thinking and give them responsibility of
implementation.
Others:
Open-door policy, meetings, seminars, workshops, conferences and social get togethers.
3 . Processing suggestions:
The suggestions are processed either by the management alone or by a suggestion committee comprising
representatives of both the management and employees. The relevant suggestions are selected for testing and
then implementation.
4. Implementing suggestions:
The most important thing that the management looks for in a suggestion is whether it will improve the

operations of the firm in any sphere. If the employee's suggestion is tested and found to have direct value for
the firm, this value is the pay-off to the industry for operating the suggestion system. The suggestion award is
the pay-off to the employee for his contribution.
Through the scheme, the management comes to know about the fairly bright, intelligent and alert
employees and the departments for which they are working.

7. Kaizen- practice/ types

1. Management oriented kaizen
2. Group oriented kaizen
3. Individual oriented kaizen
Management-oriented kazen
The first pillar is management-oriented Kaken. It is a crucial one, since management-oriented Kaizen
concentrates on the most important logistics and strategic issues and provides the momentum to keep up thc
progress and morale. Since Kaizen is everybody's job.. manager must be engaged in improving his own job.
The Japanese management generally believes that a manager should spend at least 50 per cent of his time on
improvement. The st.ing point of Kaizen is to identify %waste. in the worker's motion. Management-oriented
Kaizen also talces thc form of a group approach such as Kaizen teams. project teams, and task fonres.
However, these groups arc quite different from the quality con. circles in that they are composed of
management a. staff and their activities are regarded as a routine part of management's job. Thc management
should dircct its effort to systems improvement as onc of thc most important tasks of management-oriented
Kaizen. Systcms improvement concerns such crucial areas of management as planning and control, decisionmaking processes, organisation and information systems. Where managements have failed to establish such a
system a. have. instead, directed thcir efforts randomly and in bits and pieces, success has oftcn been
shornived. This is why commitment of the top management is indispensable when Kaizen is introduced. Many
top executives believe that Kaizen is 50 per cent of management's job.
Group-oriented kaizen
Kaizen in group work, as a permanent approach, is represented by small-group activities like quality control
circles that use various tools to solve problems. The permanent approach also calls for the full PDCA cycle and
demands that team members identify problem areas and also identify the causes, analyse them, implement and
test new counter-measures, and establish new standards and/or procedures. When group work is a temporary
approach, the suggestions are provided by ad hoc groups of employees formed to solve particular tasks. While
the members of these ad hoc groups arc, often, trained in the use of statistical and analytical tools, the groups
disband when their target is achieved. Small-group acdvIties: Small-group activities may be defined as
informal, voluntary small groups, organised within the company to carry out specific tasks in the workshop.
These small-group activities take many forms, depending on their aims: big-brother groups, big-sister groups,
QC circles, 7-D movements, no-error movements, level-up movements, JIC, mini think-tanks, suggestion
groups, safety groups, workshop involvement movements, productivity committees, management-byobjectives groups, and workshop talk groups. These small groups were often initially formed for the purpose of
stimulating cross-development among its members. The advantages of small group activities arc given below:
I. Setting group objectives and working for their attainment strengthens the sense of teamwork. 2. Group
members share and coordinate their respective roles better. 3. Communication between labour and
management, as well as between workers of different ages, is improved. 4. Morale is greatly improved. 5.
Workers develop new skills and knowledge and more cooperative attitudes. 6. The group is self-sustaining and
solves problems that would otherwise be left to management. 7. Labour-management relations are greatly
improved. Although small-group activities began as informal, voluntary organisations, they have now come to
occupy a respected and legitimate position in the eyes of managements and Japanese companies as a whole.

Individual oriented Kaizen

The suggestion system is a vehicle for carrying out individual-oriented Kaizen. Individual-oriented
improvement has almost infinite opportunity and is often regarded as a morale booster, and the management
does not always ask for immediate economic payback on each suggestion. Management attention and
responsiveness are essential if workers are to become 'thinking workers' always looking for better ways to do
their work. The suggestion system is an integral part of individual-oriented Kaizen. The top management must
implement a well-designed plan to .sure that the suggestion system is dynamic. The following are a few
examples for suggestions in most companies: Improvements in one's own work. Savings in energy, material
and other resources. Improvements in the working environment. Improvements in machines and process..
Improvements in jigs and tools. Improvements in office work. Improvements in product quality. Ideas for
new products. Customer services and customer relations.

8. Kaizen and Management

All jobs in any given organization have two components: process improvement and process control. Control
involves taking action on deviations to maintain a given process state. In case any process has observed
variations, control is achieved by adhering to established standard operating procedures (SOPs). In contrast,
improvement requires experimentally modifying the process to produce better results. When an improvement
has been identified, the SOPs are changed to reflect the new way of doing things.

The lower portion involves maintaining the process at its current level by following the SOPs. KAIZEN fits
into the upper portion of this picture. However. the upper portion go. beyond KAIZEN.

The figure illustrates that KAIZEN does not cover radical innovations. It can be seen that all levels of
management share responsibility for KAIZEN.

9. Kaizen Umbrella
Activities which support kaizen are referred as elements of kaizen umbrella

10.Case Studies:
a. Benefits of kaizen in Toyota:
Toyota is well known as one of the leaders in using Kaizen.
In 1999 at one US plant, 7,000 Toyota employees submitted over 75,000 suggestions, of which 99 per
cent were implemented.
These continual small improvements add up to major benefits. They resulted in improved productivity,

improved quality, better safety, faster delivery, lower costs and greater customer satisfaction.
On top of these benefits to the company, employees working in Kaizen based companies generally find
work to be easier and more enjoyable, thus resulting in higher employee morale and job satisfaction and
lower turnover.
Kaizen reduces waste in areas such as inventory, waiting times, transportation, worker motion,
employee skills, overproduction, excess quality and in processes.
It improves space utilization, product quality, use of capital, communications, production capacity and
employee retention. It provides immediate results.
Kaizen focuses on creative investments that continually solve large numbers of small problems.
Kaizen will also improve the capital projects process, but the real power of Kaizen is in the ongoing
process of continually making small improvements that improve processes and reduce waste.

b. Kaizen effects at Taj Hotels:

The famous Taj Hotels (Rs. 687 crore India Hotels Corporation Ltd) belong to the TATA group.
The Taj Hotels chain is ranked amongst the best three hotel chains in Asia, but the aim is to be among
the top chains in the world.
Over the past three years, the group has implemented both the kaizen approach and total productive
maintenance. Sr. vice president (corporate quality) Mr. H.N.Shrinivas, personally visited the worlds
leading hotel chains such as the Ritz Carlton (Marriott group) and four seasons to pick up the best
practices.
The Taj group benchmarked with Ritz Carlton on customer satisfaction measurement in luxury hotels.
According to Taj Hotels, three functions should happen simultaneously within any organization
maintenance, innovation, and kaizen.
Maintenance refers to maintaining the current status, where procedures are set and the standard
standards implemented.
Innovation refers to breakthrough activities initiated by top management, buying new machines, new
equipments, developing new markets, directing R & D, change of strategy etc.