Continuous Improvement & Kaizen

21/04/2010
What does Kaizen mean?

KAI
+ ZEN
change
good or better
==> improvement
Usually translated as continuous
continuous improvement
improvement
which has 2 meanings:
1.
Continuously trying to improve what you do
forever (i.e. Continuous Improvement)
Improvement)
2.
Using cycles of reflection (PDCA cycles) to
produce frequent incremental
improvements in work processes
(i.e. Kaizen)
Kaizen)
A strategy for
performance
excellence
Original source: unknown
Modified by N. Hanna & M. Burns
1
Continuous Improvement
definitions (web)
Is the continuous
elimination of waste

The constant effort to eliminate waste, reduce

response time, simplify the design of both
products and processes, and improve quality
and customer service.
Continuous incremental improvement of aspects
connected with a manufacturing process.
A quality philosophy that assumes further
improvements are always possible and that
processes should be continuously rere-evaluated
and improvements implemented.
The ongoing evaluation and change of
processes, products, programs and services to
make them work better.
5
definitions (web): (cont)
A management approach that involves

continuously searching for ways to improve
processes and the goods and services they
produce.
Incremental improvements that take place over
time as the results of corrective actions are fed
back into the Quality System.
Continuous improvement anticipates the
incremental changes that take place over time to
minimize the recurrence of repetitive quality
problems.
6
21/04/2010
Continuous Improvement (CI)

Is a business philosophy that aims at creating a
steady growth and improvement.
It produces quantum leaps when cumulative
improvements synergize
The sum of all the small improvements can
cause a profound net effect greater than the
sum of all the small improvements.
Is a set of activities that an organization routinely
carries out in order to enhance its ability to meet
requirements.
Small improvements in work processes, through
ongoing efforts by everyone - adding up to a
large improvement.
7
Continuous Process Improvement

is the systematic and continuous
elimination of waste of:
of:
Continuous Improvement (CI)

those which are found to add little or no
value.
The goal is to increase effectiveness by
reducing inefficiencies, frustrations, and
waste (rework, time, effort, material, etc).
Improvement/change
Ongoing/continuity
7 Wastes
1.
2.
3.
4.
materials
5.
people's time
6.
7.
Exercise 1: Wastes Identification

(form on next screen)
The Seven types of waste
capital
10
Two elements of Kaizen
Adopting new activities and eliminating
Overproduction
Delays (waiting time)
Transportation
OverOver-processing
Inventories
Motions
Defective products
Think Break
1. List at least one example of each of the 7 categories of

waste from a process within your organization.
2. Identify at least one possible cause for each of the
specific wastes listed.
3. Propose one or more actions to reduce each of these
wastes.
4. Identify methods of measurement to determine results
of waste reduction efforts.
11
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21/04/2010
Exercise 1: Wastes Identification

Identify one
example of each
waste type below.
Possible
cause
Proposed
action
Seven recognized forms of waste
Think Break
Seven Forms of
Waste
Method of
measurement
Defects
Overproduction
Factory Example
Scrap or rework
Elimination of Wastes and Continuous

Improvement
Office Example
The secret:
secret:
Drawing or planning
errors
Waiting
For parts, tools or

information
For concurrence from all

disciplines
Transporting
Parts moving to the

warehouse and back
Data handoffs
Inventory
Excessive work in process
Backlog of design or
tooling changes
OverOver-processing
Inventories
Unnecessary
Motion
Retrieving parts, tools, or

information
Extraneous analysis
OverOver-processing
Performing unneeded
operations
Too many signoffs
Excessive work in process
Preparing designs that

are never used
Delays
Transportation
Motions
Defective
products
OverOver-production
13
Once a year, have an outsider review your business.
Do the simple and cheap things first and quickly.
Have a formal suggestions system for your employees.

15
Key points when looking at your

continuous improvement plan
Celebrate, acknowledge and reward accomplishment.
Outsiders can often see what you cannot.
This builds credibility, momentum and commitment with your

people. It also gives you practice.

See article on Suggestions Spreadsheet.
Bring up continuous improvement issues in your

production and business meetings.
Make certain your improvements involve your
customers. Focus on delivering increasing value.
Look for breakthrough improvements.
Set up a plan and do it in stages. See article on Action Plan

Spreadsheet.
One of the added benefits of continuous improvement is

everything is on the table. Some small improvements can turn
out to be major improvements.
Try to work on two or three top priorities.

This creates a positive environment for improvement which

encourages employee participation.
Do not try to do it all at once.

The process never stops.

continuous improvement plan
Continuous means ongoing.

ongoing.
14

continuous improvement plan:
Working on more than that can diffuse effort, energy and resources.
resources.
16
be systematic
Work with a versatile team

Measure, evaluate
Find the 5 Whys (Who, what, why, when
and how)
Follow up
Standardize, make uniform
Simplify
Combine
Prevent
Make waste ugly
17

Develop a continuous improvement system that works for

your business. Do not copy without trying it out what
works for one business may not work for another.
Look inside your industry,
industry, at your competition and best
practices. Competitors can often show you a better way. If
it works, use it!
Use a costcost-benefit analysis if you have difficulty setting
priorities.
Look outside your industry to see what other industries are
doing.
Be hungry for new ideas and ways to improve.
improve. Make this a
part of your business culture. Set the example and your
people will follow.
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12 Generic Steps
Set up the Project Team.
Define the scope.
Set the goals.
Understand the process.
Plan the project.
Determine Information Needs.
1.
How to Carry out a

Project
2.
3.
4.
5.
6.
19

9.
10.
11.
12.

A low level process team should have people from the

working level.
level.
A high level process team should include managers
because they have a broader perspective.
22
Choose the tools for the job

Identify the root causes
Develop solutions
Implement the solutions
Review the results
Standardize the change
21
Set the goals
The scope of the project must include:
team building skills and

understand the tools and strategies that can be used for
problem solving.
8.
Define the scope
A team is more effective than an individual for problem

solving.
Ensure that someone on the team is knowledgeable in
every aspect of the process being studied.
studied.
The team members must be knowledgeable in:
7.
20
Set up the Project Team.

12 Generic Steps (cont)
Starting point:
point: find out what the customer
and the end user want.
The statement of the problem

A definition of the boundaries
The magnitude of improvement goals
A target date for completion and
The resources available
The goal:
goal: to find out their expectations and
meet them.
The goals should be quantified and used
as a benchmark to measure the success.
Team must be very clear about the
expectations for the Project.
23
24
21/04/2010
Process Description
Understand the Process

Understand how the current
process
works and what it is supposed to do.
There are two approaches to
understanding the present process
Graphical
The team should ask and answer key questions:

What does the process do?
What are the stages of the process?
What are the starting and finishing points of the
process?
What are the inputs and outputs from the
process?
Who are the suppliers and the customers of the
process?
Who uses the product and who pays for it?
Are there obvious problems with the process?
Process Description:
Description: The team should ask
and answer key questions
Visual/Graphical representation
25
Plan the Project
Identify root causes

2. Develop (cost(cost-effective) solutions
3. Implement the changes
4. Review the results
27
Choose the tools for the Job

brainstorming
Need to know:
1. what information is available
2. what information is not available and,
3. how to collect the currently unavailable
information.
28
A Top Down flow chart shows only the essential

steps in a process without detail.
Deployment Matrix Chart.
Chart. This is useful because it
shows who is responsible for each activity, how they
fit into the flow of work and how they relate to others
in accomplishing the overall job.
26
Determine information needs
1.
Flow Charts.
Charts. A flow chart of the process (visual
picture) is particularly helpful in obtaining an
understanding of how the process works.
flowcharts
cause and
effect/Ishikawa diagram
checksheets/tallysheets
runcharts
Pareto chart
histograms
29
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21/04/2010
Identify the Root Causes
Implement the solutions
Develop Solutions
Define required changes.

changes.
List the implementation activities
3. Determine the sequence of
implementation steps required.
4. Properly inform all those people who
are affected by the changes and ensure
they understand how the changes will
take place.
1.
1.
To get at the root cause you need to ask
2.
the question:
What is the cause of the cause?
Ask why again and keep asking 'why?'
until the team cannot think of another
cause level.
3.
4.
5.
Define the characteristics of an ideal solution and,

Identify the criteria that must be satisfied and the criteria
that are desirable but not absolutely necessary.
Identify proposed solution constraints.
Evaluate each possible solution against the criteria for
selection.
Seek to develop a solution which comes closest to:

solving the root causes

is the easiest to implement

satisfies the criteria for selection, and

does not impact on the constraints.
31
2.
32
33
CPI (Continuous Performance Improvement)

summary
Review the results
Process Improvement
Project Implemented
Savings
Standardize the change
Did the team achieve the expected

benefits?
2. Were there any unexpected benefits or
problems?
3. What can the team learn from these?
4. What can be done to finefine-tune the
solution so that it can be applied on a
wider basis?
1.
The process should be refined and

applied to other similar processes.
Time
Savings
34
Maintenance of
Process
Performance
35
CPI
Project
Data driven methodology to magnify the

impact of Process Improvement
Applies control techniques to eliminate
the erosion of improvements
Proceduralizes/standardizes
improvements for improved
maintenance of critical process
parameters
CPI projects emphasize

improvement jumps and
the control and long term
maintenance of those
improvements
Time
36
21/04/2010
Kaizen summary
Uses small teams to

optimize process
performance by
implementing
incremental change.
Applies intellectual
capital of team
members who are
intimate with the
process.
Savings
Kaizen
CPI
Time
Kaizen projects emphasize incremental improvements

gained from identifying and eliminating the 7 forms of
process waste.
37

Continuous Improvement & Kaizen

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21/04/2010

What does Kaizen mean?

The constant effort to eliminate waste, reduce

A management approach that involves

Continuous Improvement (CI)

Continuous Process Improvement

Continuous Improvement (CI)

Exercise 1: Wastes Identification

The Seven types of waste

Two elements of Kaizen

Adopting new activities and eliminating

1. List at least one example of each of the 7 categories of

Exercise 1: Wastes Identification

Seven recognized forms of waste

Elimination of Wastes and Continuous

For parts, tools or

For concurrence from all

Parts moving to the

Excessive work in process

Retrieving parts, tools, or

Too many signoffs

Excessive work in process

Preparing designs that

Once a year, have an outsider review your business.

Do the simple and cheap things first and quickly.

Have a formal suggestions system for your employees.

Key points when looking at your

Celebrate, acknowledge and reward accomplishment.

Outsiders can often see what you cannot.

This builds credibility, momentum and commitment with your

See article on Suggestions Spreadsheet.

Bring up continuous improvement issues in your

Set up a plan and do it in stages. See article on Action Plan

One of the added benefits of continuous improvement is

Try to work on two or three top priorities.

This creates a positive environment for improvement which

Do not try to do it all at once.

The process never stops.

Key points when looking at your

Continuous means ongoing.

Key points when looking at your

Work with a versatile team

Develop a continuous improvement system that works for

How to Carry out a

A low level process team should have people from the

Choose the tools for the job

Set the goals

The scope of the project must include:

team building skills and

Define the scope

A team is more effective than an individual for problem

Set up the Project Team.

12 Generic Steps (cont)

and the end user want.

The statement of the problem

Understand the Process

The team should ask and answer key questions:

Plan the Project

Identify root causes