18/12/2018

• Kaizen
Kaizen – Ongoing improvement involves everyone
• Top management
• Managers
今井正明 • Workers
– A culture of supporting quality improvement
• more important than the use of any specific tools

Japanese ≠ Kaizen
• Kaizen
– The unifying thread running through
• The philosophy
• The systems
• The problem-solving tools developed
of Japanese quality movement

• Japanese management • Western management

– Kaizen – Innovation
– Process-oriented way – Result-oriented
of thinking thinking

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• Climate features innovation • Climate favors Kaizen

– Rapid expending markets
• Increasing sales more important than reducing cost
– Consumers oriented more toward quantity
rather than quality
– Abundant and low-cost resources
– A belief that success with innovative product
will offset sluggish performance
– Sharp increase in the costs of material, energy,
and labor
– Overcapacity of production facilities
– Increasing competitions
– 資訊不對稱的消失
– Need to introduce new products more rapidly
– Need to lower the breakeven point

• Kaizen Culture • Kaizen Culture

– A corporate culture in which everyone can
freely admit these problems
– A systematic and collaborative approach to
cross-functional problem-solving
• Internal, Next process is customer
• External, suppliers
– A customer-driven strategy for improvement
• Quality, cost, schedule, and delivery requirements
– Emphasis on process
• Result is not the only thing and everything
• Support and acknowledge people’s process-oriented
efforts for improvement

Kaizen and management

• QC Circles
Innovation – Primarily focus on
Kaizen • Cost, safety, and productivity
• Indirectly to product-quality improvement

Maintenance – Account for only 10% - 30% of the overall

TQC efforts in Japanese companies
– Making improvements in the workplace
Top Middle Supervisor Worker
Mgnt Mgnt

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TQC
• TQC in Japan • Quality assurance • Safety
– A movement center on the improvement of • Cost reduction • New product
managerial performance at all levels • Meeting production development
quotas • Productivity
• Meeting delivery improvement
schedules • Supplier management

• Process-Oriented management vs Result- – Risks of result-oriented management

Oriented management • Lacking long term strategy
• Missing new ideas and innovation
– Evaluation the performance of employee
• car sales in Taiwan
– 2006, 400,000 cars
– 2007, 200,000 cars? (optimistic estimates)

http://www.kuozui.com.tw
國瑞汽車

– Process-oriented management • Manager’s job

• Evaluation of quality control circles – Maintenance-related administration
– Numbers of problems solved
• Checking the performance (result) of work
» NOT the amount of money saved
– How the problems are approached – Improvement-related management
» Do they considered the company’s current situation • Checking the process that has led to a specific result
» Do they consider safety, quality, and cost
» Do they improve work standard
• Directed at people’s efforts
• Managers need to work with employees jointly

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Key phrases of TQC

• Speak with data, 數據會說話 • Speak with data
• Quality first, not profit first – Emphasize the use of data
• Quality at source, 源頭管理 However, aware of
• False data,
• The next process is the customer • Mistaken data,
• Customer-oriented TQC • Immeasurable
• TQC starts with training and ends with
training

• Quality First • Quality First

– Customers are satisfied with the quality of – Making the top quality products
products or services – At the low cost
• Building quality into product – In large quantity
• Building quality into people
– Training is essential
– From the very beginning
» Help employee become KAIZEN-conscious

• Quality at source • The next process is the customer

– Ask “why” 5 times – Mass production age
• The real cause of a machine stoppage • The person making the products neither knows nor
– Question 1: Why did the machine stop? care who the customers are
– Answer 1: Because the fuse blew due to an overload – The design engineer’s customers
– Question 2: Why was there an overload?
• The manufacturing people
– Answer 2: Because the bearing lubrication was inadequate.
– Question 3: Why was the lubrication inadequate? • (End customers)
– ……

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• Customer-oriented TQC, • TQC starts with training and ends with

– Not manufacturer-oriented TQC training
– Build a system for designing, developing, – Building quality into people
producing, and servicing products to satisfy
their customers
• 華航 – 退票作業
– 要求旅客繳回機票正本
– 不告訴旅客如何 follow up
– Cf. 以客為尊?

• Cross-functional management to facilitate • Follow the PDCA cycle

Kaizen – Problem-solving
– “Quality at source” means TQC should be – Management
extended to include • Design – Plan: product design corresponds to the
• Vendors planning phase of management
• Suppliers • Production – Do: making products as designed
• subcontractors • Sale – Check: customers satisfied?
• Research – Action: how to approach complaints

• No layoff policy • Use the QC story to persuade

– Not PDCF – Virginia Mason Medical Center,
Seattle, WA – Case study of shortening telephone waiting
• Plan
• Do – 改善造就『冗員』 time
• Check • Redeploys employees • kaizenStory.doc
• Fight/fire! – Training
• Kaizen Promotion Office
– Toyota’s suppliers support center

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Cross-Functional Management
• Standardize the results • Building a better system for
– There can be no improvement where there are – Quality
no standards – Cost
– A way of spreading the benefits of – Scheduling
improvement throughout the organization • Resolving inter-unit conflict on
– Quality
– Cost
– Schedule

Top management Ideal Product Development

Strategy & planning
100%

Production
Marketing
planning
Marketing

Quality
Cost 50%
Production
scheduling Design
And
purchasing
Engineering

Production
preparation
production

0%
development

Administrative
Design

supports

• Cross Functional Management at Toyota

– Clarify its quality goals and deploy them to all
employees at every level
– Establish a system of close coordination among
different department
• toyotaXfun.doc