LEARNING LMS

THROUGH

UNDERSTANDING KAIZEN
A key to Japan’s Competitive success

MASAAKI IMAI
 Acknowledgments
I have merely brought together the
management philosophies, theories, and
tools that have been developed and used
over the years in Japan.
If I have contributed anything , it is in
organizing them under a single and
readily understandable concept:
KAIZEN
Masaaki Imai.
Definitions of key KAIZEN
terminology and concepts.
ANALYTICAL APPROACH: Approach based on learning
from the evaluation of past experience.

AUTONOMATION : ( Jidoka ): describe a feature of TPS.

Machine is designed to stop automatically wherever a

defective part is produced.

CHECK POINTS AND CONTROL POINTS :

Check points represent process oriented criteria & control
points represent result oriented criteria.
Check point to the manager becomes a control point to the
CROSS FUNCTIONAL MANAGEMENT :

The interdepartmental co ordination required to realise the

policy goals of KAIZEN & TQC pgm.( corporate strategy -
planning- objectives for CF efforts ).

DEMING CYCLE : ( W.E. Deming -continuous rotating wheel )

Interaction among research , design , production , and sales so as

to arrive at an improved quality that satisfies customers.

GOALS AND MEASURES :

Goals are usually quantitative fig. Established by top level mgt.

( sales , profit, market share targets )
Measures are specific action pgms. To achieve these goals.
Goals not expressed in terms of the specific measures are slogan.
IMPROVEMENT :

It is a mind set inextricably linked to maintaining and

improving standards.

JUST IN TIME :

A production and inventory control technique to cut waste in

production .

KAIZEN :

Continuing improvement in personnel life, social life, and

working life.

KANBAN :

Communication tool in JIT production and inventory control

system developed by Taiichi Ohno at Toyota.
MAINTENANCE :

Activities that are directed to maintaining current technological ,

managerial, and operating standards.

MANAGEBLE MARGIN :

the acceptable limits in a production processes.

PDCA CYCLE :

Every managerial action can be improved by careful application of

the sequence : Plan , Do, Check & Action.

POLICY :

Long and medium range management orientations as well as annual

goals or targets.
( it is composed of both goals and measures I.e. ends and means )
POLICY DEPLOYMENT :

The process of implementing the policies of a KAIZEN program directly

through line managers and indirectly through cross functional
organization .

POLICY PRIORITIZATION :
Management’s policy statement must be re stated at all mgt levels in
increasingly specific and action oriented goals, eventually becoming
precise quantitative values.

PROCESS ORIENTED MGT. : ( In KAIZEN P criteria )

Manager must support and stimulate efforts to improve the way

employee do their jobs.
( discipline, time management, skill development, participation and
involvement, morale and communication . )
QC ( QUALITY CONTROL ) :

system of means to economically produce goods or services that

satisfies customer requirements.

QC (QUALITY CONTROL ) CIRCLES :

Group that voluntarily performs QC activities within the work place ,

carrying out it’s work continuously as part of a company wide pgm. Of
QC, self development, mutual education, flow control, and improvement
within the work place.

QUALITY :

Quality is anything that can be improved.

The foremost concern here is with the quality of people. Building quality
into people means helping them become KAIZEN conscious.
QUALITY ASSURANCE :

Assuring that the quality of the product is satisfactory, reliable , and yet
economical for the customer.

QUALITY DEPLOYMENT :

technique to deploy customer requirements ( true quality char. ) into

designing char. ( counterpart char. ) and deploy them into such sub
systems as components, parts, and the production processes.

RESULTS ORIENTED MGT : ( R criteria ):

emphasis controls, performance, results, rewards ( usually financial ) , or

the denial of rewards and even penalties.

SDCA CYCLE : ( standardize, do, check, action )

Refinement of PDCA : management decides first to establish standard
Before performing the regular PDCA.
STANDARDIZED WORK :

This is the optimum combination of workers , machines and materials.

STANDARDS :

set of policies, rules, directives, and procedures established by

management for all major operations, which serves as guidelines that
enable all employees to perform their jobs successfully.

SUGGESSION SYSTEM : ( individual oriented KAIZEN ).

TPM : ( total productive maintenance )

Maximizing equipment effectiveness throughout the entire life of the

equipment.
TQC / CWQC: ( total quality control/ company wide quality control ) :

organized KAIZEN activities involving everyone in the company-

managers and workers - in a totally integrated effort towards improving
performance at every level.

VISIBLE MANAGEMENT (e.g. Kanban )

Technique of providing information & instruction about the elements of

a job in a clearly visible manner so that a worker can maximize his
productivity.

WARUSA- KAGEN :

Things that are not yet problems , but are still not quite right . Left
untended they may develop into serious problems
worker becomes first echelon of maintenance and improvement.
The KAIZEN Challenge :

most important difference between Japanese mgt. & Western mgt. Is :

Japanese KAIZEN and its process oriented way of thinking vs the

West’s innovation and results oriented thinking.

This presentation explains why KAIZEN strategy is so indispensable to

meeting the challenges in 1980s and 1990s. Yet this emphasis on
KAIZEN doesn’t mean that innovation can or should be forgotten.
both innovation and KAIZEN are needed if company is to survive and
grow.
Since KAIZEN starts with the recognition that any corporation has
problems, KAIZEN solves problems by establishing a corporate culture
in which everyone can freely admit these problems.

Masaaki Imai, 1986.

01. KAIZEN , The Concept .

LEAN/KAIZEN

Kanban
Customer orientation quality improvement
TQC JIT
robotics zero defects
QC circles small group activities
suggestion systems corporate labor- mgt . Relations
automation productivity improvement
discipline in the workplace NPDT
TPM
KAIZEN and Management :

as indicated mgt. Has two major components: maintenance &

improvement.
Maintenance refers to activities directed towards maintaining current
technological, managerial , and operating stds.:
improvement refers to those directed toward improving current
standards.

Top management

middle management Improvement

supervisors Maintenance

workers
 KAIZEN signifies small improvements made in the status quo as a
result of ongoing efforts.

Innovation involves a drastic improvement in the status quo as a

result of a large investment in new investment in new technology
& /or equipment

Top management
Improvement
middle management

supervisors KAIZEN

workers Maintenance
In Western managers’ perception of job functions ,

there is little room for the KAIZEN concept.

Top management Improvement

middle management

supervisors
Maintenance
workers
Since KAIZEN is on going process & involves everyone in
the organization , everyone in the mgt. hierarchy is involved
in some aspects of kaizen.
Hierarchy of KAIZEN involvement :

Top mgt. Middle mgt & staff Supervisors workers

 Be determined to  Deploy and implement  Use KAIZEN in  Engage in KAIZEN

introduce KAIZEN KAIZEN goals as functional roles. through the suggession
as a corporate directed by top mgt.  Formulate plans for system and small group
strategy. Through policy KAIZEN and provide activities.
 Provide support and deployment and cross guidence to workers.  Practice disciplin in the
direction for functional mgt.  Improve communication workshop.
KAIZEN by  UseKAIZEN in with workers and sustain  Engage in continuous self
allocating functional capabilities. high morle. development to become
resources.  Establish, maintain , and  Support small group better problem solvers.
 Establish policy for upgrade standerds. activities ( such as quality
KAIZEN and cross  Make employees circles ) and the
functional goals KAIZEN concious individuals suggession
 Realise KAIZEN through intencive training system.
goals through pgms.  Introduce disciplin in the
policy  Help employees develop workshop.
deploymentsand skills and tools for  Provide KAIZEN
audits. problem solving. suggessions.
 Build systems ,
procedures , and
structures
conductive to
KAIZEN.
QC & KAIZEN :

Instead of the productivity & quality,focus on KAIZEN

Starting point Of improvement is to recognize the need, which

comes from recognition of problem.

KAIZEN emphasizes problem awareness and provides clues

for identifying the problems. Thus this is also a problem
solving process.

Quality is anything that can be improved.

( products & services- way the people work, m/c are operated,
systems & procedures dealt with )
Hence more useful to talk about KAIZEN than Quality,
productivity.
July 1950 ( JUSE ) : W.E. Deming.
R-D-P-S ( OR ) P-D-C-A cycle.

July 1954 ( J.M. Juran )

1960 the 1st quality circle:

( as a company wide pgm for quality control , self
development, mutual education, and flow control and
improvement within the workshop )

QC circle is a part of CWQC it is never the whole of TQC or

CWQC.
No matters which name it is used, TQC & CWQC mean
company wide KAIZEN activities involving everyone in the
company, managers and workers alike.
KAIZEN & TQC :

People have been fooled by the term QC and have often

constructed it within the narrow discipline of product quality
control.

TQC undergoes perceptual change and improvement, and it is

never quite the same from one day to another.

Management efforts for TQC have been directed mostly at

such areas as education, system development, policy
deployment, cross functional management, and , most
recently, quality deployment.
KAIZEN & the suggestion system :

The role of the QC circles may be better understood if we

regard them collectively as a group oriented suggestion system
for making improvements.
( Japanese mgt. Generates great no of suggestions from
workers. )

Toyota Motor chairman Eijji Toyota said,

“ One of the features of the Japanese workers is that they use

their brains as well as their hands . Our workers provide 1.5
million suggestions a year., and 95 % of them are put to
practical use. There is an almost tangible concern for
improvement in the air of Toyota. ”
KAIZEN and Competition :

Normally the driving forces for the competition are price,

quality, and service. In Japan , however it is safe to say that
the ultimate use of the competition has often been competition
itself.

Japanese companies are now even competing in introducing

better and faster KAIZEN programs.

Once the KAIZEN movement is started , there is no way to

reverse the trend.
Process- oriented management Vs
Result oriented management :

Since process must be improved before we get improved

results, KAIZEN generates process oriented thinking.

Japan is process oriented society while US is result oriented

society.
E.g. sales manager evaluates salesman's performance.
Japan : Attitudinal factors.
US : Sales.
Sumo tournament :

Besides tournament championship, outstanding performance

award, a skill award, and fighting sprit award.
 PROCESS RESULT

A-----B------C------D----------------------------E

Efforts for improvements Performance

Support and stimulate Control with stick

P CRITERIA R CRITERIA
PROCESS ORIENTED THINKING :

Workman who takes a genuine concern for P criteria is

interested in :

Discipline.
Time management.
Skill development.
participation and involvement.
Morale.
Communication.
02 ) KAIZEN Vs INNOVATION :

1. KAIZEN doesn’t call for a large investment to implement

it , it does call for a great deal for continuous effort and
commitment.
2. KAIZEN requires common sense , on the other hand
Innovation requires highly sophisticated technology , and huge
investment.
3.This can be linked with staircase ( innovation ) & slope
( KAIZEN )
4. To implement KAIZEN we need simple conventional
techniques such as seven QC tools ( Pareto analysis , C-E
diagram, histogram, control charts, scatter diagram, graphs,
and check sheets. )
Ideal Pattern from Innovation :

Time

Actual pattern of innovation :

Innovation plus KAIZEN :

There is no such thing as static constant. All systems are

destined to decorate once they have been established.
( Parkinson’s Law )

Thus there must be a continuing effort for improvement to

even maintain the status quo.

KAIZEN means a constant effort not only to maintain but also

to upgrade standards. KAIZEN strategies believe that
standards are by nature tentative.

Thus KAIZEN is people oriented , where as innovation is

technology-and money- oriented.
It is extremely difficult to increase sales by 10 % . It is not so
difficult to cut mfg . Costs by 10 % to even better effect.

Total Manufacturing chain :

Science----Technology-----Design----Production----Market

Innovation KAIZEN

KAIZEN has been applied to R & D activities while

innovative ideas were applied to marketing to create the
supermarkets and discount stores.
KAIZEN and measurement :

Productivity is only a description of a current state of affairs

and the past efforts of people.
QC was started as a post modern inspection of the defects
produced in the production process.

Productivity and QC are not the reality and serve only as a

measure for checking the results , then what is the reality.?

Efforts put to improve both productivity and quality are the

reality.

When we deal with improvement, we should be working on

process oriented indices. ( P criteria ) ( sharing, caring ,
commitment.)
INSTILLING QUALITY INTO PEOPLE HAS ALWAYS
BEEN FUNDAMENTAL TO -TQC
BUILDING BLOCKS
OF
BUSINESS
SPEAK WITH DATA :
WHEN YOU SEE DATA -------------------------DOUBT IT !!!
WHEN YOU SEE IMT EQUIPMENT ----------DOUBT IT !!!
WHEN YOU SEE CHEMICAL ANALYSIS ---DOUBT IT !!!
TOTAL QUALITY ( IMPROVEMENT ) CONTROL
INCLUDES :
1. QUALITY ASSURANCE .

2. COST REDUCTION.
3. EFFICENCY.

4. MEETING DELIVERY SCHEDULE

5. SAFETY.
MANAGING THE PREVIOUS PROCESS :
Taiichi Ohno, former Toyota Motor vice president , once gave the
following example of finding the real cause of machine stoppage :

WHY DID MACHINE STOP ?-------------------Overload.

WHY THERE WAS AN OVERLOAD ?-------Bearing lubrication

WHY WAS THE LUBRICATION INADEQUATE ?– Lubrication

was inadequate.
pump was not functioning well.
WHY WASN’T THE LUB. PUMP WORKING RIGHT ?—Pump axle
was worn out.

WHY WAS IT WORN OUT ?------------------Because sludge got in .

WHY WHY ANALYSIS :

It was possible to identify the real cause and hence the real
solution .

PROBLEM / SYMPTOM :

MACHINE STOP .

REAL CAUSE :

SLUDGE IN PUMP AXLE.

REAL SOLUTION:

ATTACHING A STRAINER TO THE

LUBRICATION PUMP.
TQC ( MARKET-IN CONCEPT )
IT IS NOT A PRODUCT OUT CONCEPT:
Indicate a priority on producing goods and services
without paying sufficient attention to the customer.

THUS TQC FOCUSES UPON :

1. CUSTOMER ( people in the next process )
2. P CRITERIA.
3. IMPROVING THE PROCESS.
4. ELIMINATION OF THE WASTE
5. IMPROVING PEOPLE.( Building Quality in people )
6. MISTAKE PROFFING.
7. AUTONOMATION.

8. MANAGING PREVIOUS PROCESS.

TRAINING :
TQC STARTS WITH TRAININGAND ENDS WITH TRAINING.
This is a natural follow-up to the concept of building quality into
people.
MANAGING PREVIOUS PROCESS :
TQC SHOULD BE EXTENDED TO INCLUDE :

VENDORS STUDY VALUE STREAM SUPPLIERS

SUB CONTRACTORS.
RECASTING THE DEMING WHEEL :

DEMING WHEEL PDCA CYCLE :

PLAN ( mgt.)
DESIGN

Action ( mgt ) DO ( worker )

RESEARCH PRODUCTION.

SALES Check ( inspector )

CORELATION BETWEEN DEMING WHEEL AND PDCA CYCLE :

DESIGN-----PLAN :
Production design corresponds to the planning phase of
management.
PRODUCTION ---DO :
Production corresponds to doing—making or
working on – the product that was designed.
SALES--- CHECK :
Sales figures confirm whether the customer is
satisfied.
RESEARCH---ACTION :
In case a complaint is filed, it has to be
incorporated into the planning phase, and
positive steps ( actions ) taken for the next round
of efforts. Action hear refers to action for
improvement
STANDERDIZATION PROCESS :
BEFORE P—D—C—A., CURRENT STANDERDS MUST
BE STABILIZED.

PROCESS OF STABILIZATION IS OFTEN CALLED S-D-C-A. :

S—D—C—A CYCLE :

STANDERDIZE

ACTION
DO

CHECK
INTERACTION OF PDCA AND SDCA CYCLES WITH KAIZEN
AND MAINTENANCE :

P—D—C—A ( Kaizen )

P—D—C—A ( Kaizen )
S—D—C—A ( maintenance )

S—D—C—A ( maintenance )
MANAGEMENT ORIENTED KAIZEN :

WESTERN MANAGEMENT : Producing large number of similar

vehicles.

NEED : Need to develop a system for manufacturing small numbers of

many different kinds of automobiles.
CLASSIFICATION OF WASTE IN PRODUCTION PROCESS :
1. Overproduction.
2. Waste time spent at the machine .
3. Waste involved in the transportation of units.
4. Waste in processing.
5. Waste in taking inventory.
6. Waste of motion.
7. Waste in the form of defective units.
SMALL GROUP ACTIVITIES :
Those may be defined as informal, voluntary small groups
organized within the company to carry out specific tasks in the
work shop.
THESE SMALL GROUPS ACTIVITIES TAKE MANY
FORMS, DEPENDING ON THEIR AIMS :
1 Big brother group
8 Suggestion groups
2 Big sister group 9 Safety groups
3 QC Circles ( 1962 – study group )
4 ZD movements. 10 workshop involvement movements
5 No error movements 11 productivity committees.
12 management by objectives groups,
6 Level up movements.
13 work shop talk groups.
7 Mini think tanks
KAIZEN PRACTICE : ( DIFFERENT TYPES )

1 Management oriented KAIZEN.

2 KAIZEN in facilities .

3 Group oriented KAIZEN.

4 Individual oriented KAIZEN.

 TQC STRATEGY
SUPPORTED BY

MAINTENANCE KAIZEN MANAGING

MANAGING

Current business performance Improving the processes and

for results and profits systems.
UNDERSTANDING THE QCS W.R.T. TQC :

QUALITY :
Building better systems for quality assurance .

COST :
Building systems for identifying the cost factors and with
reducing the cost.

SCHEDULING:
Building a better system for both quality and delivery.
KAIZEN managing vs MAINTENANCE managing

KAIZEN MAINTENANCE
Policy Routine Management
deployment

Line Organization.
Quality

Cross Cost
functional Scheduling
management
Small Group Activities.

Individual Suggestions.
QCS WHEEL :
Top management responsible for

Strategy planning

Marketing. Product
planning

Production Product
& planning
Product
Purchasing. Designing
Production
Preparation.
( make/ buy ).

Administration responsible for providing support

CONTROL POINTS & CHECK POINTS :
Oil volume Gas Flow. Oil Temperature

Nozzle Nozzle

Meter Meter
Oil temperature
Control point( data )
Worker Worker

Check point Control point

(process Criteria ) (Result Criteria )

Foreman
IN SHORT :

1.) Control point represent R criteria & check point represent P criteria.
2.) At the higher management level, control points are policy goals and
the check points policy measures.
3.) Every goal must be accomplished by measures to realize it.
Without measures all managers can say to subordinates:
I trust that you will do your best ! OR
Work Harder !!!

4.) Goal---------control point.----------------- Result oriented.

Measure-----Check point.------------------ Process oriented.
QUALITY DEPLOYMENT :
One of the problems of the management today is that employees have
come to accept lower standards for the product they make.

Are you proud enough to buy what you build ?

People begin to accept a lower level of quality in the name of AQL.
E.G.; I want a facial cream that doesn’t melt when I go outside in the hot
summer weather.
:- A facial cream that doesn’t melt in India’s summer.
“ bullet train ” :- Customer’s requirement --- protect the passengers.
Secondary requirements :
Doesn’t leak
Doesn’t undergo change in atmospheric pressure.
Doesn’t tear into pressure.

Counterpart characteristics : tensile strength: tear strength:

extension ratio: anti-crumple strength.
CORPORATE OBJECTIVES :
The corporate objective of maximizing profits may be attained by:
a.) increasing the sales &/ or
b.) lowering both fixed and variable expenses.
KAIZEN strategy aims at both. Sales.
Variable
f i t Expenses.
Sales and expenses.

Pro

Break even point

oss Fixed
L
Expenses.

Volume
3 MU Checklist of KAIZEN activities :
A number of KAIZEN check point systems have been developed to help
both workers and management be constantly mindful of the areas for
improvement. 1.) Muda ( Waste )
2.) Muri ( Strain )
3.) Mura ( Discrepancy )
Following is a widely used example utilizing three checkpoints :

1. Manpower 7. Materials.
2. Technique. 8. Production volume.
3. Method 9. Inventory.
4. Time. 10. Place.
5. Facilities. 11. Way of thinking.
6. Jigs and tools
THE Five- Step KAIZEN movement :
The 5 S movement takes its name from the initials of five Japanese
words start with S : 1. Seri ( straighten up )
2. Seiton ( put things in order )
3. Seiso ( clean up )
4. Seiketsu ( personnel cleanliness.)
5. Shitsuke ( discipline )
1. Seri ( straighten up )
1. Work in progress.
2. Un necessary tools.
3. Un used machinery.
4. Defective products
5. Papers and documents.
Differentiate between necessary and un necessary and discard
the un necessary.
 2. Seiton ( put things in order )
Things must be kept in order so that they are ready for use when
needed.
Seiso ( clean up )
Keep the work place clean.

4. Seiketsu ( personnel cleanliness.)

Make it a habit to be clean and tidy, starting with your own

person.
5. Shitsuke ( discipline )
Follow procedures in the workshop.
QC TOOLS :

7 STATISTICAL TOOLS : NEW SEVEN TOOLS :

1. Pareto diagrams. 1. Relations diagram

2. Cause and effect 2. Affinity diagram.

diagram. 3. Tree diagram.
3. Histogram. 4. Matrix diagram
4. Control charts. 5. Matrix data analysis
5. Scatter diagrams diagram.

6. Graphs. 6. PDPC ( Process Decision

Program Chart )
7. Check sheets.
7. Arrow Diagram.