CONTENTS

Origination of Kaizen ................................................pg. 3 Traditional Western Business Practices ..................pg. 4

Kaizen is Different ....................................................pg. 5 Basic Kaizen Philosophies ..................................pg. 5 Benets & Application of Kaizen .............................pg. 6 Success Stories....................................................pg. 6 Applications Elements .........................................pg. 7 Ranking ................................................................pg. 8 Establishing Procedures ......................................pg. 9 Incentives and Rewards .......................................pg. 9 Customer Focus ....................................................pg. 10 Standardizing & Sustaining Kaizen .........................pg. 11 Integration .............................................................pg. 11 Issue Resolution ...................................................pg. 12 Kaizen Leaders ......................................................pg. 12

The information presented in this best practices guide was obtained from sources whom we deem reliable and the best available sources; Graphic Products, Inc. has made every effort to assure this information is correct. However, we do not guarantee accuracy or completeness. Graphic Products, Inc. makes no representations or warranties of any kind, express or implied. Information in this guide is subject to change without notice. Except as expressly provided for in writing, the liability of Graphic Products, Inc. arising from the use of this guide is specically excluded and Graphic Products, Inc. disclaims all warranties and any liability for damages of any kind and any liability whether in contract, tort under statute or otherwise for any injury, damage or loss whatsoever. No reliance should be placed on information contained or to be implied or inferred in this guide, and users of this guide should verify all information with ANSI and OSHA sources directly.

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INDEX

Common Western Philosophies .........................pg. 4

ORIGINATION OF KAIZEN
ince the start of the industrial revolution, managers of facilities have spent a great deal of time looking for new ways to improve production and decrease costs. For over 30 years, Kaizen has been one of the more popular and successfully applied management philosophies used to help facilities attain these goals. Kaizen was rst developed in Japan just after WWII. The literal English translation of Kaizen means continuous improvement. When applied as a management term, the meaning is expanded and more specic. This denition is: The active participation by all employees to continually look for imperfections. The roots of Kaizen can be traced back to the late 1940s. A time when Japans economy was still reeling from the war. Of course, Japan overcame its many challenges and is viewed as one of the worlds great economic powers today. In fact, Japanese facilities were out-producing most countries by the 1970s with better overall quality and pricing. Today, Japanese facilities are renowned for producing high-quality products and implementing innovation. What made Japan such a force to be reckoned with?

In the years following World War II, the U.S. provided aid to help reconstruct Japans economic infrastructure. As part of this aid, U.S. industrial consultants travelled to Japan to teach modern methods of production and efciencies. Japanese facilities embraced these new methods and improved-uponthem by integrating many of their own cultural and business philosophies. This is how Kaizen originated. Since then, the philosophy has helped many Japanese facilities become very successful. Today, Kaizen is helping to increase the prots and efciencies of facilities located all over the world. However, for this to be successful, all employees must embrace the philosophy and be willing to apply its ideals in their work and with coworkers. Implementing Kaizen is likely to change many roles and responsibilities in a facility. Management will begin looking to all employees for ideas to improve a facility. This, in turn, will place greater responsibility on employees to nd improvements. Where Kaizen is successfully applied, managers support employees by helping them nd and implement new methods of efciency. Since ideas for improvement come from all employees, managers will nd the new methods spawned from these ideas are easier to implement. Even top executives are expected to actively participate in Kaizen. This ensures everyone is on the same page and a facility constantly improves. Compared with methods used in many traditional Western business, Kaizen can be much simpler to implement and maintain since all employees actively participate. -32009 Graphic Products, Inc. All rights reserved.

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TRADITIONAL WESTERN BUSINESS PRACTICES

s with any region in the world, North American and European businesses have their own philosophies and management styles. At the core of traditional Western business philosophy is division, or segregation by work type. Western businesses generally segregate management, labor and specializations into their own separate divisions.

In many Western businesses, managers are seen as leaders because they develop the ideas, propose them and implement them. Their role is to be in charge. Managers in these businesses generally spend much of their time working in an ofce and are not expected to make regular visits to work areas. In some facilities, this may serve as a buffer to allow managers space to work. However, the result can actually limit their communication with work area personnel and reduce their effectiveness as a manager. COMMON WESTERN PHILOSOPHIES
Innovation Innovations are typically developed by those designated to do so. Performance Managers visit work areas when improvements are required. Bottom Line Changes are implemented only when money can be saved. Tradition If it aint broke, dont x it is a common ideal. Prot Sharing Rewards go to employees producing measurable prots (e.g. Salespeople). Inventory To avoid running-out of inventory, its well-stocked. Quality Good designers produce quality products. Reliability Good machinery means reliable production. Specialization Focus only on your job. Learning other jobs may result in a lay-off due to redundancy. Repetition The more you do the same job, the better you get at it. Never deviate from your training. Direction Wait for management to tell you what to do or produce. Not My Job Venturing outside of your job description may result in an additional expected duty. Loyalty Always take care of Number One.

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KAIZEN IS DIFFERENT

n recent history, Kaizen-inuenced business philosophies have helped to shape new roles for much of the worlds management and labor. As a result, many facilities are experiencing greater efciencies and organization than ever before.

Many of these advancements are the direct result of a labor force empowered by Kaizen. This creates an environment in which all employees participate in nding efciency improvements and are never afraid to contribute to the success of their facility. Modern Kaizen takes this belief one step further. Work area personnel arent just encouraged to contribute ideas for facility improvements its expected. This is a philosophy shared by all employees and helps build an atmosphere of teamwork and achievement. This can greatly improve communication between work area personnel and management and help facilitate efciency improvements in work areas. In a Kaizen facility, all suggested ideas are reviewed by management, without preferential treatment. Ideas found to have merit are quickly implemented, no matter who suggested it. This level of active participation empowers employees to constantly strive for improvement and work to keep their facility competitive. BASIC KAIZEN PHILOSOPHIES
Innovation Comes from anyone, but the right environment must be provided. Performance Managers spend time in work areas so performance improvements are well communicated. Bottom Line Cost reductions involve many small steps by both management and labor. Tradition A company should only have a tradition for change. Prot Sharing All employees are rewarded for nding efciency improvements that increase prots. Inventory Lower inventories, reduce waste and help uncover aws in the system. Quality Quality comes from constant attention to all levels of product design, development and production. Reliability Good station operators maintain and improve their own machines for greater reliability. Specialization Learn your job rst and then learn everything related to your job. (Never Specialize. This helps employees formulate new ideas for improvement.) Repetition The more one improves, the more the company saves and the more they have to pay employees. Direction Look around for visual cues for what to do next. Not My Job Instead of complaining, nd ways to make your job easier and more interesting. (The managements goal is the same as yours.) Loyalty Look-out for your company. It has the same goal as you.

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BENEFITS & APPLICATION OF KAIZEN

here Kaizen is properly applied, many unforeseen benets may result. Managers often become more effective leaders, work area personnel are motivated and all employees operate more as a cohesive unit. The end-result is an environment fostering teamwork, where people work together to achieve common goals. Not only does Kaizen help all employees improve the work they do, facilities experience many benets as well. Often, these are realized as increased prots and lower costs. Managers stand to benet the greatest by applying Kaizen. They will nd they have a constant ow of ideas on how to improve their facility, many of which they would never have thought of themselves. Once implemented, the effect these ideas have can ripple through a facility, positively inuencing many unforeseen elements. They are also known to expose many issues. Many times, issues managers may have been unaware of. These benets are only realized by disciplined managers who actively seek new ideas from all employees. Managers who follow through on these responsibilities are rewarded for their efforts. They gain greater respect from employees and, in turn, become more effective managers. This alone brings value to a facility. This style of management empowers employees by making them responsible for managing the implementation of their own ideas. They become focused on achieving the same efciency-improving and prot-increasing goals as management. Several popular application strategies are listed in this guide to help properly apply Kaizen. Since no two facilities are the same, these are only suggested strategies and should be modied to best suit a facilitys individual needs. SUCCESS STORIES One of the largest auto manufacturers in the world, Toyota, is well-known as a pioneer in Kaizen. They are credited with formalizing the philosophy and helping turn it into a globally accepted management philosophy as early as the 1960s. Since then, Toyota claims to have experienced many successes through the continued practice of Kaizen. In one example, Toyota managers claimed to have received over 75,000 suggestions from 7,000 employees in a one year period, of which 99% were implemented. These are unusual results, but clearly possible with the proper application of Kaizen. One can only imagine how much money Toyota saved by implementing this many improvements. In Kaizen, the implementation of an idea is viewed only as one small improvement in a continual search for improvements. However, these individual improvements add-up over time and can provide substantial benets for any facility. Quality, customer service and even sales can increase, while safety issues and sick days decrease. In addition, employees working in a Kaizen facility generally nd work to be easier and more enjoyable. This results in higher employee morale, job satisfaction and lower turn-over.

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With every employee looking for ways to make improvements, facilities may see several fundamental benets. These include:
Improved productivity Improved quality Reductions in safety issues Quicker deliveries Lower costs Increased customer satisfaction

Kaizen is known to be benecial to facilities facing economic challenges. In Japan, facilities applying Kaizen were known to overcome many great economic obstacles. In fact, post-WWII Japan was far from an ideal environment for unbridled economic growth. Yet, it occurred. Thanks, in part, to Kaizen. Like the implementation of any new method or process, applying Kaizen does require a brief period of adjustment. At rst, employees and managers may be reluctant to make changes in their roles. Preparing a long list of employee and facility-wide benets can help overcome this resistance and open the door to greater acceptance. In general, facilities are going to benet from Kaizen differently as will many employees. However, there will be some common, facility-wide benets for each employee. Early on, these benets should be shared with employees during regularly scheduled facility meetings, along with any success stories, to help foster Kaizens continued acceptance and use. APPLICATION ELEMENTS The following elements describe several key concepts used to successfully apply Kaizen:
Make continuous small improvements based on employee suggestions Foster the open sharing of ideas Hold facility-wide meetings where employee suggestions are always the central theme Treasure all employee suggestions as a positive contribution to improve operations The ow of ideas should move up and down the chain of command Create a simple suggestion form Categorize suggestions Assign categories for suggestions Develop a process to manage suggestions Assure suggestions are taken seriously

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RANKING As shown in the sample forms below (Fig 1, 2), each facility needs to develop a ranking system to aid in the suggestion evaluation process. Ranking systems help managers sort ideas worth implementing and eliminate those without merit. Depending on the facility, medium quality suggestions with less complexity could be categorized for implementation (IMP) by work area personnel (WAP). Those with higher levels of complexity may be categorized for management implementation or involvement (MNG). In either case, all suggestions should be easily and simply ranked. This way, managers can give serious consideration to the better suggestions. Assure all suggestions are reviewed without bias and seriously considered. Failing to properly review suggestions would be counter-productive. To help rank suggestions by merit, establish a point system. Criteria used to rank suggestions can then be categorized. Point systems are, of course, up to members of the Kaizen Implementation Team to design and should be tailored to t an individual facility. Ranking examples include: Quality, Complexity, Supervisory Attention. Always work to encourage suggestions. This is accomplished by assuring contributors know their ideas are under review and will be seriously considered. Implementing most reasonable ideas encourages future contributions and allows them to be tested before elimination. If an idea works, standardize it! If not, provide a reason to the employee who made the suggestion. By creating this avenue for contributions, the overall quality and quantity of ideas should improve and helps put Kaizen suggestions into action.

SUGGESTION FORM
NAME: Kim Richards ISSUE: SUGGESTION: WORK AREA: Station 15 DATE: 2/4/09 #27327B PROCESS OR STATION AFFECTED: Packaging Machine #3, Stapling Spring Machine #3 does not properly staple packages because the spring cannot properly penetrate packaging 10% of the time. This issue is slowing production and delaying delivery. Replace spring on machine so packaging can be properly stapled, or allow us to hand-staple packaging instead. This would require the purchase of a hand-stapler to replace the current machine.

Fig 1

SUGGESTION RANKINGS
NAME Rick Spencer Bill Coffee Jill Gentry Joe Anderson Kim Richards Don Cross Julie Fields Tim Gross WORK AREA Station 3 Station 27 Station 11 Station 11 Station 15 Station 27 Station 2 Station 1 SUG. # 27323B 27324B 27325B 27326B 27327B 27328B 27329B 27330B DATE 2/1/09 2/1/09 2/1/09 2/2/09 2/4/09 2/5/09 2/14/09 2/15/09 QUALITY COMPLEXITY 3 8 7 6 8 3 5 1 1 3 2 2 7 2 3 1 SUPERVISORY RANK/ ATTENTION IMP. 4 1 1 6 8 5 3 1 3/WAP 8/WAP 7/WAP 6/WAP 8/MNG 3/WAP 5/WAP 1/WAP

Fig 2
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ESTABLISHING PROCEDURES Successfully implemented ideas should be incorporated into a work areas standard operating procedures as soon as possible. This requires properly documenting procedures so work area personnel have an easy-to-read visual reference. Posting procedures on, or near, locations-of-use is an excellent way to permanently embed a new procedure into a work area. Labels and signs, such as the example in Fig 3, help facilities improve safety, increase production and reduce employee training.

DRYER #4

STARTUP PROCEDURE
1. 2. 3. 4. 5. 6. START BLOWER AND RUN FOR 3 MINUTES OPEN GAS SUPPLY TO PILOT LINE PRESS LIGHTER VERIFY PILOT FLAME IS BURNING OPEN GAS LINE TO BURNER 1 OPEN GAS LINE TO BURNER 2.

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Fig 3

As previously mentioned, its generally best to allow the employee who suggests an idea the opportunity to implement it. This may still require management participation, but empowering an employee to actively manage the implementation of their idea increases its chance to succeed and its continued use. When handled in this manner, work area personnel not only work to see their ideas succeed, they are more open to other new ideas. This increases their performance and lifts morale. Plus, employees are known to take greater pride in a procedure they helped dene and implement. INCENTIVES AND REWARDS Never miss an opportunity to reward a good idea. Incentives show your facility values all suggestions and encourages more of them. Monetary incentives work well, but in some situations other rewards may also be just as effective. Facilities often nd they are rewarded with a monetary savings well-beyond the cost of a bonus. In Japan, employees are known to have furnished entire homes with their rewards, while their facilities realized even greater savings. Depending on how a reward system is structured, rewards can go to individual employees or to work areas where an idea originated. Rewarding employees by work areas helps encourage teamwork, but individual rewards can also breed more competition and better suggestions. To track a facilitys progress, chart all successfully implemented ideas on a banner and post it for all employees to see. This creates competition and becomes a very effective tool in attracting more inventive ideas. When properly implemented, both monetary and non-monetary incentive programs have the potential to snowball into a facility-wide competition amongst employees. The goal of charting successfully implemented ideas is to provide employees with the feedback and motivation they need to continue to make more suggestions. Ultimately, this leads to facility improvements so management should make every effort to help the process be as pleasant as possible for all employees.
Displaying a bar chart banner in the work area can help personnel track the progress of their contributions and compare them with others.

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CUSTOMER FOCUS With Kaizen, the main goal is to satisfy the customer. To help achieve this, the customers needs and requirements must be understood. The following list provides several sample questions facilities may nd useful in learning customer attitudes:
What does the customer want from this product? Why do they like our product? What makes the product more acceptable to the customer? Would I want the product?

In Kaizen, the term customer applies to much more than just external individuals and entities. Where properly applied, employees using Kaizen consider everyone they come into contact as their customer. When production personnel see coworkers as customers, more care is put into the products they produce. They may notice inconsistencies in the product they are assembling. Instead of overlooking the issue and passing-it-on to the next station they ask, Why is their product inconsistent? Employees of a Kaizen Facility trace these issues, up the line, to the root of the cause. The issue may then be eliminated by suggesting an improvement. The ultimate goal is to provide the highest level of customer satisfaction, without regard to whether a customer is internal or external.

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STANDARDIZING & SUSTAINING KAIZEN

mployees need uniform, facility-wide policies to assure Kaizen is properly followed. Rules should be established to describe how ideas are collected, rewarded and implemented.

Managers should make every effort to keep the lines of communication between work area personnel and mangers open. Their ofces should be made as accessible as possible to all employees. As an example, product design engineers should be communicating directly with production managers on the oor. This feedback helps designers recognize issues sooner and well before production of a new product begins.
Evaluate current facility goals and consider setting new ones Goals should focus on reducing production time, cost and waste Changes made to meet these goals should be reviewed and adjusted wherever necessary A facilitys organizational structure and policies should be closely analyzed so Kaizen is uniformly applied Information and ideas should not only travel down the chain, but up the chain as well Executives commonly walk into work areas and talk face-to-face with work area personnel Executives often ask work area personnel about their families and jobs.

INTEGRATION Kaizen should be viewed as a facilitys umbrella philosophy. One that covers all other Lean Manufacturing systems, methods and processes. It helps to ensure the successful implementation of ideas, by binding each into a single efciencyimproving movement. In addition, facilities experience many side-benets by integrating Kaizen with other Lean Manufacturing technologies. By doing so, techniques can be modied to better suit unique facility requirements. Therefore, its a good idea to implement Kaizen rst. Once fully implemented, employees will often be ready to accept more complex and challenging implementations.

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ISSUE RESOLUTION In the spirit of Kaizen, a facility always views itself as imperfect. Issues are inevitable, but some require more expertise than a single person may have. This is where a small group activity known as Quality Control Circles (QC Circles) can be used. QC Circles is a method specically designed to help work areas and facilities tackle more complex issues. QC Circles are never formal assignments and are generally formed, ad-hoc, by the employees themselves whenever a complex issue arises.

KAIZEN LEADERS In many facilities, Middle Managers become the leading advocates of the Kaizen Philosophy. Their regular interaction with work area personnel gives them the unique ability to directly encourage employee suggestions and assure good suggestions are implemented. Once fully applied, Middle Managers will nd Kaizen to be an invaluable tool in aiding the implementation of many of their goals and those established by upper management. Converting a facility to Kaizen takes time and patience. It also requires a dedication. Utilize the following tips to help improve the conversion process:
Make meetings more efcient by developing employee problem-solving-skills Show employees the many ways Kaizen benets them and the facility in which they work Assure a facility is Kaizen Conscious by applying the philosophy daily and by rewarding suggestions Identify good problem solvers in your facility and look to them for ideas in solving complex issues The more employee-solved-issues; the easier it is to meet goals set forth by upper management Standardized policies help to maintain direction and achieve goals Never hesitate to change policy when they become dated or no longer useful Since Kaizen promotes constant change, policies must remain exible for continued adjustment.

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