CONTINUOUS IMPROVEMENT (KAIZEN)

Process Management
Continuous Improvement (Kaizen)
Overview of the Concept of Kaizen
The Concept of GembaKaizen
Kaizen Check Lists

Books About KAIZEN

Some Kaizen Applications


"A NEVER-ENDING JOURNEY"      

“UNLESS YOU CHANGE THE PROCESS, WHY WOULD YOU EXPECT THE RESULTS TO CHANGE?”

The President of Texas Instruments  Defense Systems and Electronic Group

“IMPROVE CONSTANTLY AND FOREVER THE SYSTEM OF PRODUCTION AND SERVICE. IMPROVEMENT IS NOT A ONE-TIME EFFORT. MANAGEMENT IS OBLIGATED TO CONTINUALLY LOOK FOR WAYS TO REDUCE WASTE AND IMPROVE QUALITY.”

                         W. Edwards Deming

KAIZEN STRATEGY IS THE SINGLE MOST IMPORTANT CONCEPT IN JAPANESE MANAGEMENT--THE KEY TO JAPANESE COMPETITIVE SUCCESS. KAIZEN MEANS ‘ON-GOING’ IMPROVEMENT INVOLVING EVERYONE--TOP MANAGEMENT, MANAGERS, AND WORKERS.”

Masaaki Imai

“THE STARTING POINT FOR IMPROVEMENT IS TO RECOGNIZE THE NEED. THIS COMES FROM RECOGNITION OF A PROBLEM. IF NO PROBLEM IS RECOGNIZED, THERE IS NO RECOGNITION OF THE NEED FOR IMPROVEMENT. COMPLACENCY IS THE ARCH-ENEMY OF KAIZEN. THEREFORE, KAIZEN EMPHASIZES PROBLEM-AWARENESS AND PROVIDES CLUES FOR IDENTIFYING PROBLEMS.”

                                                                                                                                                               Masaaki Imai

 

First, we will discuss the subject of Process Management which is an integral part of the TQM system. It is also a major criterion for the EFQM and Baldrige Awards. Next, we will take up “Kaizen” or “ Continuous Improvement”. 

Process Management

What is a process ?
A sequence of activities that is intended to achieve some result, typically to create added value for a customer.

  • Two types of processes:

    • core processes (those that drive the creation of goods and services)

    • support processes (those that are critical to production and delivery)

  • To apply process management techniques, processes must be

    • repeatable - process must recur over time
    • measurable - information can be obtained by measurement
Characteristics of companies that successfully manage their processes:
  • They control the quality and operational performance of key processes used to produce and deliver products and services.
  • They identify significant variations in processes and outputs, determine root causes, make corrections, and verify results.
  • They continually improve processes to achieve better quality, cycle time, and overall operational performance.
  • They set “stretch goals” and make extensive use of benchmarking and reengineering to achieve breakthrough performance.
    • Stretch goals push an organization to think differently. Such radical thinking results in dramatic innovation and significant leaps in performance. Benchmarking and reengineering support innovation.
    • Benchmarking is the search for best practices, in any company, in any industry, any where in the world.
    • Reengineering is the radical redesign of business processes to achieve unprecedented improvement in performance.
    • What is a "stretch goal"? A stretch goal is an ambitious goal. Sometimes it is called a “breakthrough objective.” Stretch goals force an organization to think radically different to encourage major improvements, as well as incremental ones. Stretch goals can be set for all areas of the company, including manufacturing, sales, accounting, product design, etc.
A famous ilustration of the setting and use of "stretch goals" is the Motorola Company. Motorola set the following stretch goal in 1987:

“Improve product and services quality ten times by 1989, and at least one hundred fold by 1991. Achieve six sigma capability by 1992. With a deep sense of urgency, spread dedication to quality to every facet of the corporation, and achieve a culture of continuous improvement to assure total customer satisfaction. There is only one ultimate goal: zero defects--in everything we do.”

Concept of six-sigma quality:
Shrinking process variation (as indicated by 6 sigma) to half of the design tolerance so that only 3.4 parts out of 1 million are defective. At Motorola, six sigma became part of the common language of all employees. To them it meant “near perfection”, even if some did not understand the statistical details.

Continuous Improvement (KAIZEN)
KAIZEN is the name given by the Japanese to continuous improvement. Continuous improvement really means “continuous incremental improvement.” KAIZEN is a culture of sustained continuous improvement focusing on eliminating waste in all systems and processes of an organization. The KAIZEN strategy begins and ends with people. With KAIZEN, an involved leadership guides people to continuously improve their ability to meet expectations of high quality, low cost, and on-time
delivery. 

                                      kai   =  change

                                      zen  =  good 

KAIZEN means making changes for the better on a continual, never-ending basis.

  • Kaizen refers to improvement of both processes and people.

  • In fact, Kaizen philosophy aims at improving all aspects of an organization all the time.

  • Good is never good enough; kaizen is a never-ending journey to excellence.

Two Elements of KAIZEN 
There are two elements that construct KAIZEN, improvement/change
for the better and ongoing/continuity. Lacking one of those elements would
not be considered KAIZEN. For instance, the expression of "business as
usual" contains the element of continuity without improvement. On the
other hand, the expression of "breakthrough" contains the element of
change or improvement without continuity. KAIZEN should contain both
elements. 

Overview of the Concept of Kaizen (Imai)

  1. Kaizen value system --- continual improvement of all things, at all levels, all the time, forever.
  2. Role of top management --- top management is responsible for establishing Kaizen as the overriding corporate strategy and communicating this commitment to all levels of the organization and allocating the resources necessary for Kaizen to work.
  3. Role of middle management --- responsible for implementing the Kaizen policies established by top management; establishing, maintaining and improving work standards; ensuring that employees receive the training necessary to understand and implement Kaizen, and ensuring that employees learn how to use problem solving and improvement tools.
  4. Role of supervisors --- responsible for applying the Kaizen approach in their functional roles; developing plans for carrying out the Kaizen approach at the functional level; improving communication at the workplace; maintaining morale; providing coaching for teamwork activities; soliciting Kaizen suggestions from employees and making Kaizen suggestions.
  5. Role of employees --- responsible for participating in Kaizen through teamwork activities, making Kaizen suggestions, engaging in continuous self-improvement activities, continually enhancing job skills through education and training, and continually broadening job skills through cross-functional training.
  6. Kaizen and quality --- In a TQM environment quality is defined by customers. Regardless of how customers define quality, it can always be improved and it should be, continually.
The following excerpt is taken from the Kaizen Institute website (www.kaizen-institute.com). It sums up the philosophy and approach of KAIZEN.

"Not a day should go without some kind of improvement being made
somewhere in the company. When KAIZEN is adapted in organizations and management perspectives, however, it is easier to talk about it than to implement it. It is very natural that people will propose some kind of change in their own work place, when they become unsatisfied with their present conditions. Some of the improvements could be carried outright away. Perhaps, the boss won't even notice them. However, when approval is required, several kinds of responses from the boss could have taken place. The ideal situation is that the boss encourages their subordinates to carry out their ideas. The boss then appreciates the efforts or gives recognition. That's what people expect when they propose something. The positive response given by the boss will then develop trust with the subordinates and stimulate other improvements. Cumulatively, this will create momentum for continuing improvement. 

The Wet Blanket List 

However, life in the organization is not as easy. The boss could ask
you a silly question like: "it is not broken, why should we change it" or
"the procedure is fine with me, why should we change it?". From your
perspective, you know that if you change it, the boss will blame you. The
boss just did not want to give you a try, with a lot of reasons and/or no
reasons. You could not do anything anymore, "the boss is always right"
like the saying goes. There are so many bosses like that. The book
KAIZEN talks about the list called "The Wet Blanket List". The bosses
should encourage their subordinates, but in a real life, the wet blankets put
out the "fire" of improvement suggestions. Here is the list of wet blankets: 

THE WET BLANKET LIST

1.  I am too busy to study it 
2.  It's a good idea, but the timing is premature 
3.  It is not in the budget 
4.  Theory is different from practice 
5.  Isn't there something else for you to do ? 
6.  I think it doesn't match corporate policy 
7.  It isn't our business; let someone else think about it 
8.  Are you dissatisfied with your work ? 
9.  It's not improvement, it's common sense 
10. I know the result, even if we don't do it 
11. I will not be held accountable for it 
12. Can't you think of a better idea ?

Yes, I heard them from my boss, you may say, however, reflect on
yourself before you blame your boss. Your subordinates may also hear
them from you frequently. In an inefficient organization, everybody tends to throw wet blankets everywhere. You could also add more wet blankets
from your own vocabulary, the list could be endless. 

The Real Organizational Life 

That's what really happens in organizational life. Bosses discourage
subordinates and the subordinates become skeptical. They quit making
proposals, suggestions and improvement and the organization becomes
very stagnant. Sometime, the bosses are aware of the stagnation and buy
a new machine, change the layouts, or even hire a bunch of consultants to
make a breakthrough. They do that because it's their function to make
breakthroughs. They change everything and rock the organization.
However, they don't change and still criticize their subordinate, tossing wet blankets to the people. This is very important point, that change and
improvement should start from top management. Top management should
change their own behavior when dealing with subordinates.

Ten Basic Tips for KAIZEN activities 
As you know by now, it is not easy to implement the KAIZEN philosophy to where the culture is not solid to adopt it. KAIZEN Institute can help to change the way of thinking of your people and the culture and make a difference. Here is the first advice from us for you to start with, the list of basic tips for KAIZEN to have the first step of KAIZEN implementation. 

BASIC TIPS FOR KAIZEN ACTIVITIES
1.  Discard conventional fixed ideas. 
2.  Think of how to do it, not why it cannot be done. 
3.  Do not make excuses. Start by questioning
     current practices. 
4.  Do not seek perfection. Do it right away even if for
     only 50% of target. 
5.  Correct it right away, if you make a mistake. 
6.  Do not spend money for KAIZEN, use your
     wisdom. 
7.  Wisdom is brought out when faced with hardship. 
8.  Ask 'WHY?" five times and seek root causes. 
9.  Seek the wisdom of ten people rather than the
     knowledge of one. 
10. KAIZEN ideas are infinite."

The Concept of GembaKaizen (Kaizen in the workplace)

In manufacturing industry, there are three major activities directly related to earning money: developing, producing and selling products. Without these activities, the company cannot exist. Therefore, in a broad sense, GEMBA means the sites of these three major activities. In a narrower context, however, GEMBA means the place where the products are made. The word is usually used in this narrower context, since production sites have been one of the business arenas most neglected by management. Managers seem to write production off as only a secondary means to earn money, and usually place far more emphasis on such sectors as financial management, marketing and sales, and product development. When GEMBA or production sites do become a focus of management attention, though, they can be turned into a utopia capable of making the company far more successful and profitable. 

In the service industries, GEMBA is where the customers come into contact with the services offered. In the hotel business, for instance, GEMBA is everywhere: the lobby, the dining room, guest rooms, the receptionist's desk, check-in counters, and the concierge station. At banks, tellers are working in GEMBA, as are loan officers receiving applicants. The same goes for employee's working desks in offices and for telephone operators sitting in front of switchboards. Thus, GEMBA spans a multitude of offices and administrative functions. 

What is GEMBAKAIZEN ? 

Now you have a good understanding of the words, KAIZEN and GEMBA. GEMBAKAIZEN is KAIZEN activities that take place in GEMBA. GEMBAKAIZEN is to make continuous improvement at the real place, where the action is going on, and that can make your organization better. (Source: Kaizen Institute Web Page)

Kaizen Check Lists
Kaizen is about continual improvement of people, processes, procedures, and any other factors that affect quality. An effective way to identify problems that represent opportunities for improvement is to use a checklist that draws attention to those factors that are most likely in need of improvement.
Factors which may need improvement:
  1. personnel
  2. work techniques
  3. work methods 
  4. work procedures
  5. time
  6. facilities
  7. equipment
  8. systems
  1. software
  2. tools
  3. materials
  4. plant layout
  5. production levels
  6. inventory
  7. paradigms (mindset - anlayýţ)
Using the "5 W's and 1 H" encourages employees to look at a process and ask questions such as:

      Who ---Who is doing it?   Who should be doing it?

      What --- What is being done?  What should be done?

      Where --- Where is it being done ? Where should it be done ?

      When --- When is it being done ? When should it be done ?

      Why --- Why is it being done ? Why do it that way ?

      How --- How is it being done ? How should it be done ?

 

The "Five M Checklist" given below is an approach that focuses attention on the five key factors which are present in any process.

This checklist can always be used in problem-solving and process improvement. In the lecture materials to come, you will be introduced to some widely-used problem solving and improvement approaches and techniques.

Visit Kaizen Institute by clicking the image

Books About KAIZEN

Detailed information about these books and more may be obtained from Amazon.com website.

Some Kaizen Applications (Click the thumbnails to enlarge)

 

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