Kaizen

1
Chapter 10

• Kaizen
• Securing Your Tomorrow-Today

2
Kaizen

• A Japanese word that means to change for the
  good.
• Doing little things better everyday defines
  kaizen-slow, gradual, but constant improvement.
• Continuous improvement in any area that will
  eliminate waste and improve customer satisfaction.

3
Kaizen

• The target of kaizen is cost reduction through
  the elimination of waste at all levels in the
  manufacturing processes.

4
Kaizen Event

• Can accomplish
• Rapid improvement in the performance of a
  specific production process or manufacturing cell.

5
Kaizen

• Waste targets are
• Unnecessary motion
• Unnecessary material handling
• Waiting time
• Rework/Scrap
• Unnecessary Part Processing
• Excess Inventories/Over Production

6
Rules of Kaizen

1. Keep an open mind to change
2. Maintain a positive attitude
3. Create a blameless environment
4. Encourage non-judgmental thinking
5. Be aware of multiple alternatives
6. Treat others as you want to be treated
7. Respect and involve all team members
8. One person, one voice
9. Create a team environment
10. No such thing as a dumb question
11. Create a bias for action
12. Creativity before capital
13. Never leave in silent disagreement
14. Have fun

7
Phases of Team Evolution

• Forming
• Storming
• Norming
• Performing

8
Paradigms

• Inhibitors to Continuous Improvement
• Resistance to change
• Paradigms
• Paradigm a set of rules and regulations (either
  explicit or implicit) that
• Set boundaries
• Tell what to do to be successful within those
  boundaries
• Success is measured by being able to solve
  problems within rules.

9
The Past Imperfect

• The wireless music box has no imaginable
  commercial value. Who would pay for a message
  sent to nobody in particular?
• David Sarnoffs associates, in resposne to his
  urgings for investment in the radio in the 1920s
• Who the hell wants to hear actors talk?
• Harry M. Warner, Warner Brothers, 1927
• I think there is a world market for maybe five
  computers
• Thomas Watson, CEO of IBM, 1943
• There is no reason for any individual to have a
  computer in their home.
• Ken Olsen, Pres, Chairman Founder of Digital
  Equipment Corp., 1977
• Everything that can be invented has been
  invented.
• Charles H. Duell, Commissioner, U.S. Office of
  Patents, 1989

10
Lean Manufacturing

• A manufacturing philosophy that achieves shorter
  lead times to deliver high quality, low cost
  products by eliminating waste in the
  manufacturing process
• An integrated system that provides value for the
  customer and respect for the workers
• A flexible production system that is able to
  produce a variety of products in the exact
  quantities, at the exact same time, as required
  by the customer

11
Target Pricing
12
Target Pricing
13
5 Key Performance Measures

• Quality
• Scrap, rework, time to check, etc.
• Cost
• Materials, labor, building, etc.
• Delivery
• Total lead-time of part/service
• Safety
• Lost time incidents, ergonomoics, etc.
• Morale
• Employee turnover, tardiness, etc.

14
Lead Time Oil Change Example
15
Eliminating Waste
16
Eliminating Waste
17
Eliminating Waste
18
Eliminating Waste
19
The Foundations of Kaizen

• Systems Thinking
• Each process (person) is one part of a series of
  dependent events
• A chain is no stronger than its weakest link
• Information communication is critical
• Effect on total team (process) goals is
  considered.

20
Process and Results

• Results are always historical
• Yesterday
• Last week
• Last month
• Focus on the PROCESS, improved RESULTS can only
  be obtained by improving the PROCESS
• Process is NOW

21
Problems are Treasures

• Problems are opportunities
• If no problem is perceived, there can be no
  improvement
• People are not problems, they are problem-solvers
• Non-judgmental/Non-blaming
• Eliminates search for who to blame
• Provides system improvement
• Allows relentless root cause analysis
• Increases trust
• Improves quality of communication
• Avoids shoot the messenger mentality
• Avoids crisis orientation

22
Key Kaizen Building Blocks

• Quality at the source
• Customer identification
• Customer focus
• Standardized work
• Incremental improvement
• Speak with data
• Production preparation Process
• Quality at the Source
• Quality Results
• Quality Process
• Quality Perception

23
Zero defects

• Motto
• I do not accept defects
• I do not make defects
• I do not pass on defects
• Source inspection Operators must be given the
  means to perform inspection at the source, before
  they pass it along.
• Poka-yoke is the removal of all potential causes
  of error either through design, process, or
  mistake proofing devices, to ensure consistent
  process results.

24
Speak with Data

• Do not assume
• Analyze data doubt it
• Make decisions with data
• Take action based on data
• Check results
• Each of the following is worth something but of
  no real validity without DATA
• Opinions
• Past experience
• Sixth sense
• Gut feeling
• Bosss spouses intuition

25
Conclusion

• Create flow
• Eliminate waste
• Create a sense of urgency
• Speak with data
• Have a bias for action
• Reduce variation
• Focus on the process
• Communicate, communicate, communicate