TOYOTA KAIZEN EXPERIENCE

By, K. Aishwarya Prachi Bhatnagar

Archana
Vikas sharma Prateek Amardeep

Introduction : What is Kaizen?

Kaizen means "improvement".

It is a Japanese workplace philosophy which

focuses on making continuous small improvements which keep a business at the top of its field. The philosophy involves everyone in the organization managers and workers alike and urges them to make never-ending efforts for improvement.
For example, in Japanese companies, such as Toyota

and Canon, several suggestions per employee are written down, shared and implemented.

What is Kaizen ?

Kaizen means continuous improvement Kaizen is basically small small improvements carried out by the person who is doing the job in his day to day work Continuous improvement everyday through involvement of everyone in the organisation is the key for excellence.

Piling small improvements on top of each other

What is Kaizen ?

Kaizen in essence, means adopting a new way, not just of doing work, but a new way of thinking, one in which problems are not shunned but eagerly sought out, welcomed and solved.

Kaizen means creating a place where employees feel better at work. - Y. Yasuda

KAIZEN
Small Steps Conventional Know-How Efforts

INNOVATION
Big Steps Technological Breakthrough Investment

Process-Oriented
Slow-Growth Economy

Result-Oriented
Fast-Growth Economy

Cultural Differences Between Kaizen and Traditional Organisations

Sl.N o. 1. 2. 3. 4. 5. 6. 7. 8. Item Management Culture View of customer View of people Shop floor (GEMBA) Shop floor methods Measurements Support staff Problem focus of solutions Kaizen Preventive Market-In Assets Improvement Source Constant Improvement Trends of Improvement Serving Shop Floor Treasures Traditional Crisis Product-Out Costs Problem / Failure Source Static and Routine End result only Critical of shop floor Rejection

Cultural Differences Between Kaizen and Traditional Organisations

Sl.N o. 9. 10. 11. 12. 13. Item Information Approach to Employee Appraisal Unions Development Supervision Kaizen Shared / Open Strengths Partners On-going learning Despecialise Traditional Restricted / Closed Weakness Adversary Do as told Specialise

14.
15. 16.

Career approach
Movement Management Concern

Coach
Slow / Broadening Cross Functional Support Process Results change long term

Inspector
Fast / Skimming Functional control Results only. Routine short term

Market-In TQC Industrial Robots QC Circles

Kanban
Quality Improvement Just-In-Time Zero Defects Small Group Activities Labour-Management Relations Productivity Improvement New-Product Development

Suggestion System
Automation Discipline in the workplace TPM

KAIZEN UMBRELLA

Key Features of Kaizen

1.

2.

3. 4.

5. 6.

Improvements are based on many, small changes rather than the radical changes that might arise from R & D . As the ideas come from the workers themselves, they are less likely to be radically different, and therefore easier to implement Small improvements are less likely to require major capital investment than major process changes The ideas come from the talents of the existing workforce, as opposed to using R&D, consultants or equipment any of which could be very expensive All employees should continually be seeking ways to improve their own performance It helps encourage workers to take ownership for their work, and can help reinforce team working, thereby improving worker motivation

The Key Kaizen Practices

1.

Mindset & Culture customer orientation quality control (QC) circles suggestion system discipline in the workplace small-group activities cooperative labor-management relations total quality management (TQM) quality improvement

2.Production Process automation & robotics Autonomation ( jidoka ) zero defects total productive maintenance (TPM) kanban Just-in-Time (JIT) productivity improvement new product development

The quick and easy kaizen process

The employee identifies a problem, waste, or an

opportunity for improvement and writes it down.

The employee develops an improvement idea and

discusses it with his or her supervisor.

The supervisor reviews the idea within 24 hours and

encourages immediate action.

The employee implements the idea. If a larger

improvement idea is approved, the employee should take leadership to implement the idea.

Kaizen : Key principles

The first is a heavy reliance on teamwork, in which everyone's

opinion is valued and considered.

Workers also have strong personal discipline, and morale in

factories must improve under kaizen.

Workers should also be confident about offering suggestions

for improvement, even when a system appears to be functioning adequately

Kaizen recognizes that there is always room for improvement Finally, the system uses quality circles, worker groups who

meet and work together to solve problems and come up with innovative changes.

Kaizen : Implementation Concepts

Kaizen encompasses many of the components of

Japanese businesses that have been seen as a part of their success.

Some of these concepts inspired by Kaizen are: 5S The Deming or Shewhart Cycle (PDCA) Quality circles Kanban

Key Benefits of Kaizen

Widely applicable Can be used in both manufacturing and

non-manufacturing environments
Highly effective & results oriented - Kaizen events will

generate quick results, Measurable results, Establish the baseline, and measure the change
Higher operational efficiency Reduces wastage, like inventory waste, time waste,

workers motion Improves space utilization and product quality

A Learning Experience Every member of a Kaizen Team will

walk away from the event learning something new. Encourages big picture thinking Results in higher employee morale and job satisfaction, and lower turn-over.

Ten basic tips for Kaizen

Discard conventional fixed ideas

Think of how to do it
Do not make excuses Do not seek perfection , do it right away even if

50% target is achieved Do not spend for Kaizen Wisdom is brought out by hardship Ask why find root causes If a mistake is made correct right away

 Seek wisdom from group rather than one

Kaizen ideas are infinite

How Kaizen can be useful to organizations to improve their operational efficiency and competitive advantages???
Kaizen strategy begins and ends with people.

With Kaizen, an involved leadership guides people continuously to improve their abilities to meet High quality expectations, low cost on-time delivery. The two most important elements of Kaizen are improvement/change for the better and ongoing/continuity. Kaizens concept was based on the belief that a

Low cost
To reduce the material costs involved in the

production cost councils were set up Kaizen was used to reduce standard time and referential cost further to increase productivity. Under Kaizen costing, costs were controlled through a division of responsibilities amongst group leaders, chief leaders and engineers. The group leaders were in charge of reducing the time taken by the workers by improving their operating process

 Reduce labor costs by fixing an amount to be

reduced by following Kaizen activities labor costs at Toyota was that it was calculated on the basis of production efficiency. Production efficiency= (Standard Time) x (Production Volume)/Real Working Hours of Working Group Only defect-free products were considered in the production volume

Improved quality
workers had to maintain the quality of products to

increase production efficiency. Each team member was a quality inspector and any time during the production process, whoever spotted a problem could stop production The two most significant benefits of these initiatives were undoubtedly enhanced quality and efficiency In the production line, the team members treated the next person on the production line as a customer and so did not pass a defective part to that person

Reduced time
The chief leaders were engaged in reducing the

standard time of their working unit by means of process improvements for reducing the workers in their unit called Shojinka. Try Teams New product development time reduced

improvement. Justify this statement by explaining the role played by Kaizen in Toyotas success.
Toyotas DNA is Kaizen.

At Toyota, Kaizen means everyday improvement in

gemba or the shop floor. Management works continuously towards revising the current standards, once they have been mastered, and establishing higher ones. Kaizen signifies small improvements as a result of coordinated continuous efforts by all employees.

Toyota employed Kaizen costing for cost reduction, which according to analysts was imposed on the workforce, leading to the labor crisis. Do you agree with the above statement? What steps should an organization take to avoid such problems in adopting practices such as Kaizen?

Toyota management set a target cost for each

part and standard time for their production and shop floors through Kaizen to meet the time and cost targets Forming try teams by skilled labor and setting targets on others taking those teams as a bench mark. labor costs at Toyota was that it was calculated on the basis of production efficiency Ideas on methods for improvement have to be taken from the workers who work in the real time

 Company must go with bottom up approach while

implementing such programs of continuous improvement because workers are the main assets in such practices The teams are to be formed based on the work and the standard time should be set taking into consideration their average worker skill sets The workers should have been given freedom to set their standards of productivity and time External environment conditions should have been considered.

solution

Division of work(work specialization)

Dynamic groups.
Strong and well informed leaders. Clear work plans Well defined standards. Pre set achievable targets Labor grievances cell. Continues human resource audit.

Minimum guaranteed pay.

Perquisites. Inter functional teams.

Adequate workers representation in management.

Work culture and environment.

KAIZEN REPORT
Subject :
DIVISION DEPT. SKETCH AND DESCRIPTION SUBMITTED BY : CHECKED BY SIGN APPR. DESCRIPTION OF SUBJECT KAIZEN DATE

Before Improvement

FOCAL POINTS

After Improvement SPECIAL EFFORTS

IMPROVEMENT EFFECT (BENEFITS)

QUALITY CHECK POINTS

EFFECTIVE FROM : (DATE)

MONTH

YEAR