CONTINUAL IMPROVEMENT using

KAIZEN Thinking

BRICKPLANT
PPMC & PRODUCTION
Course Content:

Unit 1 Basic Principles of Continual Improvement

Unit 2 The Improvement Cycle
Unit 3 Tools and Techniques for Quality
Improvement
Unit 4 Tools for Non-Numerical Data
Unit 5 Tools for Numerical Data
Unit 6 Using Graphical Tools for Problem Solving

BRICKPLANT
PPMC & PRODUCTION
 UNIT 1

The Basic Principles of

Continual Improvement

BRICKPLANT
PPMC & PRODUCTION
What is KAIZEN?

 Kaizen is the Japanese word for continual

improvement.

 "Kai = "To Change“

 "Zen“ = "Make Better".

 The underlying philosophy is that there is always room for

improvement, and a culture of continuously becoming better is
created.

BRICKPLANT
PPMC & PRODUCTION
Why is Quality Important?

 It is the main determinant of customer satisfaction

and business success.

 As quality improves:
 Waste is reduced.
 Operating costs reduce.
 Profitability increases.
 Competitiveness improves.
 Customer satisfaction increases.

BRICKPLANT
PPMC & PRODUCTION
What is Quality?

 A degree to which a set of inherent characteristics of

a product or service fulfill the needs and
expectations of our customer.

 Quality can be used with such objectives as:

 Poor
 Good
 Excellent

BRICKPLANT
PPMC & PRODUCTION
Quality and Customer Satisfaction

 The quality of an organization’s products, services

and other outputs is determined by the customer.

 Quality and customer satisfaction results from the

effectiveness and efficiency of the product
realization and support processes.

 Effective = meeting requirement on time

 Efficient = meeting requirement on time using minimum
resources

BRICKPLANT
PPMC & PRODUCTION
The Phases of Quality Management
Inspection before Corrective action Quality built into process
and after production. during production. through preventive action.

Acceptance Process Continual

Sampling Control Improvement

Least Progressive Most Progressive

Kinds of Acceptance Sampling

•Attribute Acceptance Sampling

•Pass-Fail
•Yes-No
•Variable Acceptance Sampling
•Height
•Weight

BRICKPLANT
PPMC & PRODUCTION
The ISO 9000 Family of Standards

 ISO 9000 = Quality Management Systems:

Fundamentals and Vocabulary
 ISO 9001 = Quality Management Systems:
Requirements
 ISO 9004 = Quality Management Systems:
Guidance for Performance Improvements
 ISO 19011 = Guidelines on Quality and Environmental
Auditing (Issue 1st Qtr 2002)
 For Lead Auditors

BRICKPLANT
PPMC & PRODUCTION
The Role of the ISO 9000 Family of Standards

 Provides:
 A framework for continual improvement.
 Confidence in ability to consistently fulfill customer requirements.
 Helps organizations to enhance customer
satisfaction.
 Encourages organizations to:
 Analyze customer requirements.
 Define processes that contribute to achieving quality product.
 Keep these processes under control.

BRICKPLANT
PPMC & PRODUCTION
The Basis of the ISO 9000 Family of Standards

 The ISO 9001:2000 Standards are based on 8

Principles of Quality Management.
 The requirements and guidelines are structured
around those principles.
 The principles can be used to guide management
action.
 They can also be used as a framework for
establishing quality policy.

BRICKPLANT
PPMC & PRODUCTION
Quality Improvement

 Quality improvement is achieved by improving

business processes.
 A process is a set of interrelated or interacting
activities which transforms inputs into outputs.
 Quality improvement is a continual activity to
constantly improve process performance and the
ability to fulfill requirements and increase customer
satisfaction.

BRICKPLANT
PPMC & PRODUCTION
Approaches to Continual Improvement

 There are two fundamental ways to conduct process

improvement:
 Business Process Re-engineering
 Kaizen

 The most effective approach is to use both

approaches.

BRICKPLANT
PPMC & PRODUCTION
Business Process Re-engineering

 Involves breakthrough projects which either lead to

radical revision and improvement of existing
processes or the implementation of new processes.
 Usually carried out by cross functional teams outside
routine operations.
 Usually involves significant re-design of existing
processes.
 Usually involves the use of enabling information
technology.

BRICKPLANT
PPMC & PRODUCTION
Kaizen

 Involves small step incremental improvement

activities conducted within existing processes,
usually by people involved on the process.
 The emphasis in applying Kaizen is on using simple,
yet effective tools and techniques to continually
improve business processes.
 The aim is to involve everyone in the organization in
quality improvement, using tools and techniques that
everyone can learn and apply.

BRICKPLANT
PPMC & PRODUCTION
Corrective and Preventive Action

 Corrective and preventive actions improve the

processes of an organization and are critical to
quality improvement.
 Corrective action is taken to eliminate the cause of a
detected problem and prevent recurrence.
 Preventive action is taken to eliminate the cause of a
potential problem and prevent occurrence.

BRICKPLANT
PPMC & PRODUCTION
Management Commitment

 Without the leadership of top management playing

an active role, no continual improvement effort will
succeed, regardless of the desires and effort of
subordinates.
 Successful continual improvement processes must
have the support and involvement of management at
all levels.
 Management must also communicate the idea to that
quality is everyone’s business.

BRICKPLANT
PPMC & PRODUCTION
Kaizen and Teamwork

 Process improvement activities are usually more

successful when conducted in teams.
 For incremental improvement projects team
members should normally be drawn from those who
own and operate the process.

BRICKPLANT
PPMC & PRODUCTION
 UNIT 2

The Continual Improvement Cycle

BRICKPLANT
PPMC & PRODUCTION
The Kaizen Improvement Process

 Typically involves these steps:

1. Select process for improvement and set goals for improvement.
2. Study and document the current processes.
3. Seek ways to improve the process.
4. Designed an improved process.
5. Implement the improved process.
6. Evaluate it.
7. Document the improved solution, communicate it to all
concerned and establish appropriate training.

 Steps 4-6 may be repeated as necessary until

satisfactory results are achieved.

BRICKPLANT
PPMC & PRODUCTION
The Kaizen Improvement Cycle
Select a
process Must be specific

Document

Study/Document

Evaluate

Seek ways to
Implement
improve it
improved
process

Design an
improvement
process

BRICKPLANT
PPMC & PRODUCTION
Key Elements in the Improvement Cycle

 A number of key elements in the improvement cycle

further illustrate the nature of the activities involved.
 They are:
 Standardization (documentation)
 The plan-do-check-act cycle
 Methods and tools used.

BRICKPLANT
PPMC & PRODUCTION
Standardization

 Process of carefully documenting the best way of

performing an operation.
 Applies in two ways:
 Before attempting to improve the process = pre-standardization
 After the process has been improved = post-standardization

BRICKPLANT
PPMC & PRODUCTION
Post Improvement Standardization

 Occurs after the process has been improved.

 New method is documented so it becomes the new
standard for the process.
 It is also then a reference for:
 Training workers
 Other related processes
 Further improvement at a later time

BRICKPLANT
PPMC & PRODUCTION
Kaizen is a Disciplined Approach

 Standardization illustrates the disciplined approach

used in Kaizen.
 Important to carefully document improvements.
 Can be difficult to adhere to over a long period of
achievements.

BRICKPLANT
PPMC & PRODUCTION
The Plan-Do-Check-Act (PDCA) Cycle

 Also referred to as the Shewhart cycle Deming Wheel.

 The PDCA cycle is the conceptual basis for Kaizen or
continual incremental improvement activities.
 Can be applied to the improvement of all processes.
 It is a continual process as illustrated on the next
slide.

BRICKPLANT
PPMC & PRODUCTION
The PDCA Continual Improvement Cycle

Plan

Act Do

Check

BRICKPLANT
PPMC & PRODUCTION
Phase 1 = Plan

 Begin by studying current process.

 Standardize that process.
 Then collect data to identify problems.
 Next, analyze data and develop a plan for
improvement.

BRICKPLANT
PPMC & PRODUCTION
Phase 2 = Do

 Implement the plan – on a small scale if possible.

 Document any changes that are made during this
pahse.
 Collect data systematically for evaluation.

BRICKPLANT
PPMC & PRODUCTION
Phase 3 - Check

 Evaluate the data collected during the do phase.

 Check to see how closely the results match the
original objectives of the plan phase.

BRICKPLANT
PPMC & PRODUCTION
Phase 4 - Act

 If the results are successful, standardize the new

method and communicate new method to all people
associated with the process.
 Implement training for the new method.
 Consider opportunities for replicating the same
changes in other similar processes.
 If the results are not successful, either revise the
plan and repeat the process, or cease this project.

BRICKPLANT
PPMC & PRODUCTION
Replicating Successful Improvement Projects

 In replicating successful results elsewhere in the

organization, the PDCA cycle is repeated.
 Similarly, if the plan was not successful and further
modifications are to be attempted, the PDCA cycle is
repeated.
 Employing the sequence of steps represented by the
PDCA cycle provides a systematic methodology for
continual improvement.

BRICKPLANT
PPMC & PRODUCTION
 UNIT 3

Tools and Techniques That Support Kaizen

BRICKPLANT
PPMC & PRODUCTION
The Use of Supporting Tools and Techniques

 Decisions based on analysis of situations and data

play a leading role in Kaizen based quality
improvement projects and activities.
 Success is enhanced by proper application of tools
and techniques developed or these purposes.

BRICKPLANT
PPMC & PRODUCTION
Tools for Numerical Data

 Where possible, process improvement decisions

should be based on numerical data.
 Decisions regarding differences, trends, and
changes in numerical data should be based on
proper statistical interpretation.

BRICKPLANT
PPMC & PRODUCTION
Tools for Non-Numerical Data

 Some process improvement decisions may be based

on non-numerical data.
 Such data play an important role in decision making
in:
 Marketing
 Research and Development
 Management
 Appropriate tools should be used to process
properly this kind of data to transform them into
useful information fro decision-making.

BRICKPLANT
PPMC & PRODUCTION
Training in Applying The Tools and Techniques

 All members of the organization should receive

training in quality improvement tools and techniques
to improve their work processes.
 Training separated from application is rarely effective.
 Numerous tools and techniques have been
developed.
 For the purpose of this course, we shall concentrate
on some of the more commonly used methods.

BRICKPLANT
PPMC & PRODUCTION
Methods and Tools

 The incremental improvement process has a number

of phases in which various methods and tools are
used.
 They include tools and techniques for:
 Identifying the problem
 Describing the current and revised processes
 Generating ideas for process improvement
 Achieving consensus among team members
 Evaluating and monitoring results

BRICKPLANT
PPMC & PRODUCTION
Linking the Tools and Techniques to the PDCA Cycle

 Some of the quality improvement tools are applicable

to specific phases of the PDCA improvement cycle.
 Others are appropriate to more than one phase.
 For example, problem solving tools are more
applicable to the Plan phase of the PDCA cycle, than
say the Do phase, although not exclusively so.

BRICKPLANT
PPMC & PRODUCTION
 Applicability of Tools to PDCA Cycle Phases
No. Tools and Techniques Plan Do Check Act
For Non-numerical Data
1 Data Collection Form # # # #

2 Benchmarking # #
3 Brainstorming #
4 Cause and Effect Diagram #
5 Flowchart # #
6 Tree Diagram #
For Numerical Data
7 Data Collection form # # # #
8 Control Chart # # #
9 Histogram #
10 Pareto Diagram #
11 Scatter Diagram # # #

BRICKPLANT
PPMC & PRODUCTION
 UNIT 4

Tools and Techniques for

Non-Numerical Data

BRICKPLANT
PPMC & PRODUCTION
Common Tools and Techniques for Non-Numerical Data

 Data collection form

 Affinity Diagram
 Benchmarking
 Brainstorming
 Mind mapping
 Cause and Effect diagram
 Flowchart
 Tree Diagram

BRICKPLANT
PPMC & PRODUCTION
The Data Collection Form or Check Sheet

 Can be used for both non-numerical and numerical

data collection
 Used to gather data systematically to obtain a clear
picture of the facts.

BRICKPLANT
PPMC & PRODUCTION
Affinity Diagram

 Used to organize into groupings a large number of

ideas, opinions or concerns about a particular topic.
 Designed to stimulate creativity and full participation
within a team.
 Works best with groups of not more than 8 members.
 Ideas are written on cards and shuffled to get
random assortment, then sorted into related groups.

BRICKPLANT
PPMC & PRODUCTION
Benchmarking

 Process of measuring organizations performance on

key processes or customer requirements against the
best in the industry, or the best in any industry.
 Establishes a standard against which performance
can be judged and a model for learning how to
improve.

BRICKPLANT
PPMC & PRODUCTION
Benchmarking Questions

 Which organization does it the best?

 How do they do it?
 How do we do it now?
 How can we change to match or exceed the best?

BRICKPLANT
PPMC & PRODUCTION
Brainstorming

 To identify possible solutions to problems and

potential opportunities for improvement.
 Encourages unrestrained collective thinking and free
flow of ideas.
 For successful brainstorming:
 Criticism is absent
 One or a few members are not allowed to dominate the sessions
 All ideas are welcomed.

BRICKPLANT
PPMC & PRODUCTION
Mind Mapping Creative Thinking Tool by Edward Bono

 Provides a means of viewing a problem or situation

in a systemic or holistic way.
 Allows key words to be noted down and linked
together in a pattern, to summarize and simplify the
thought processes.
 Main topic is placed in the center and key words
radiate out from the center.
 Can be used in conjunction with brainstorming, or as
a problem solving tool.

BRICKPLANT
PPMC & PRODUCTION
Part Complete Example of Mind Mapping

Q Tools

BRICKPLANT
PPMC & PRODUCTION
Cause and Effect Diagram

 Also known as a fishbone diagram or Ishikawa

diagram.
 Used to analyze and communicate problem cause
and effect relationships.
 Facilitates problem solving from symptom to cause
to solution.
 Helps organize problem solving efforts by providing
several layers of categories that may be factors in
causing problems.

BRICKPLANT
PPMC & PRODUCTION
Example Cause and Effect Diagram

Environment Methods Materials

Cause
Cause
Cause
Cause
Cause
Cause
Effect
Cause Cause
Cause Cause

Cause Cause

Cause Manpower Machines

BRICKPLANT
PPMC & PRODUCTION
The Flowchart

 Visual representation of the key steps in a process or

procedure.
 Normally called a process map when representing a
process.
 May be a physical process, such as the movement of
material through production.
 Might be an information based decision making
process portraying the decisions that are made with
respect to a certain activity.

BRICKPLANT
PPMC & PRODUCTION
Example of a Flowchart
Start
Symbol:
Design prototype
Beginning and end steps

Evaluate
prototype
Activity Description

Trial Production

Decision Box
Evaluate
trial

Direction of Flow Produce Goods

Stop
BRICKPLANT
PPMC & PRODUCTION
The Tree Diagram

 Shows the relationship between a topic and its

component elements.
 Systematically breaks down a topic into its
component elements.
 Ideas generated by brainstorming and clustered with
an affinity diagram can be converted into a tree
diagram to show logic and sequential links.

BRICKPLANT
PPMC & PRODUCTION
Example of a Tree Diagram

Cellphone
(Topic)

Texting Controls
Call Cost
Facility (Major category)

Easy to use Clearly Durable

(Component Element) Marked Keyboard

On-screen Directory
Instructions easily
(Sub-elements) accessed

BRICKPLANT
PPMC & PRODUCTION
 UNIT 5

Tools and Techniques for

Numerical Data

BRICKPLANT
PPMC & PRODUCTION
Common Tools and Techniques for Numerical Data

 Data collection form or check sheet

 Control Chart
 Histogram
 Pareto Diagram
 Scatter Diagram

BRICKPLANT
PPMC & PRODUCTION
The Data Collection Form or Check Sheet

 Can be used for both non-numerical and numerical

data collection.
 Used to gather data systematically to obtain a clear
picture of the facts.

BRICKPLANT
PPMC & PRODUCTION
Example Check Sheet –Package Label Defects

Day Time Missing Off Loose or Other Total

Label Center Folded
F 12 to 1 IIII III I 8
1 to 2 II 2
2 to 3 I IIII 5
3 to 4 II II 4

4 to 5 I IIII 6
5 to 6 II 2

Total 7 14 6 0 27

BRICKPLANT
PPMC & PRODUCTION
Control Chart

 Time ordered plot of sample statistics distinguishing

variations due to assignable or non-random causes
from the random variations inherent in the process.
 Chance variations repeat randomly within predictable
limits
 Variations due to special or assignable causes
indicate that some factors affecting the process need
to be identified, investigated and brought under
control.

BRICKPLANT
PPMC & PRODUCTION
Applications of the Control Chart

 Diagnosis:
 To evaluate process stability
 Control:
 To determine when a process needs to be adjusted and when it
needs to be left as it is.
 Verification:
 To verify the effectiveness of an improvement to the process.

BRICKPLANT
PPMC & PRODUCTION
Types of Control Chart

 There are a number of types of control chart to

choose from, depending on type of data involved.
 These fall into one of two categories:
 Control charts for variables:
 Variables are measured values, usually on a continuous
scale.
 e.g. Amount of time to complete a task, length or width of a
part.
 Control charts for attributes:
 Attributes are data counted
 e.g Number of defective parts in a sample, number of
complaints.

BRICKPLANT
PPMC & PRODUCTION
Control Charts for Variables

 The conceptual basis of control charts for variables

is the normal distribution.
 Mean and range run charts are used to monitor
variables.
 Mean or X-charts monitor the central tendency of a
process.
 Range or R-charts measure the process variability or
dispersion.
 Mean and range charts used together compliment
each other.
 Run chart shows performance or improvement over
time.

BRICKPLANT
PPMC & PRODUCTION
 Example of Mean and Range Charts Used together –
Shift in Mean

Sampling (Processing mean

Distribution is shifting upwards)

UCL

(X-chart detects shift)

Xbar-chart
LCL

UCL

R-chart (R-chart does not

detect shift)
LCL

BRICKPLANT
PPMC & PRODUCTION
 Example of Mean and Range Charts Used together –
Increase in Variability

Sampling (Processing variability

Distribution is increasing)

UCL

(Xbar-chart does not

Xbar-chart initially detect the increase)
LCL

UCL

R-chart (R-chart detects

the increase)
LCL

BRICKPLANT
PPMC & PRODUCTION
Example of Run Chart – Shows Performance Over Time

120%

100%

80%
% Defects

60%

40%

20%

0%
1 2 3 4 5 6
Month

BRICKPLANT
PPMC & PRODUCTION
Control Charts for Attributes

 P-chart is a control chart for attributes used to mnitor

proportion of defectives generated in a process.
 The theoretical basis for the p-chart is the binomial
distribution.
 C-chart is used where the goal is to control the
number of defectives per unit.
 The theoretical basis for the c-chart is the Poisson
distribution.
 More detailed consideration of control charts is
beyond the scope of this introductory course.

BRICKPLANT
PPMC & PRODUCTION
The Histogram

 Used to display the pattern variation of data.

 Facilitates visual communication of data about
process behavior.
 Helps in making decisions about where to focus
improvement efforts.

BRICKPLANT
PPMC & PRODUCTION
Example of a Histogram

Number of occurrences 25

20

15

10

0
0 5 10 15 20 25 30 35 40 45 50 55 60
Weight in grams

BRICKPLANT
PPMC & PRODUCTION
The Pareto Analysis

 Based on empirical method and used to display in

order of importance, the contribution of each item to
the total effect.
 Used to rank opportunities for improvement.
 Holds that relatively few factors generally account for
a large percentage of the total cases
(e.g. complaints, defects, problems)
 Also known as the 80-20 Rule, it states approximately
80% f the problems (or value, cost, etc.) stem from
20% of the items or factors.

BRICKPLANT
PPMC & PRODUCTION
Example of a Pareto Diagram

BRICKPLANT
PPMC & PRODUCTION
Scatter Diagram

 Used to discover and display the relationships

(correlation) between two variables.
 Also used to confirm anticipated relationship
between two associated sets of data.

BRICKPLANT
PPMC & PRODUCTION
Commonly Occurring Scatter Diagrams with Positive
Correlation

y y y

x x x
Strong positive Weak positive No relationship
correlation correlation

BRICKPLANT
PPMC & PRODUCTION
Commonly Occurring Scatter Diagrams with Negative
Correlation

y y y

x x x
Strong negative Weak negative Curvilinear correlation
correlation correlation

BRICKPLANT
PPMC & PRODUCTION
Interpreting the Scatter Diagram

 Relationship between the associated sets of data are

inferred by the shape of the clouds.
 A positive relationship between x and y means
increasing values of x associated with increasing
values of y.
 A negative relationship means increasing values of x
are associated with decreasing values of y.

BRICKPLANT
PPMC & PRODUCTION
 UNIT 6

Using Graphical Tools for Problem Solving

BRICKPLANT
PPMC & PRODUCTION
Using Graphical Tools for Problem Solving

 The tools and techniques for quality improvement

are used in appropriate combinations.
 Use the PDCA cycle as the project methodology.
 The following slides illustrate some examples.

BRICKPLANT
PPMC & PRODUCTION
Using a Combination of Tools for Problem Analysis

BRICKPLANT
PPMC & PRODUCTION
Comparison of Before and After Using Pareto Charts

Before 100% After

Improvement
100%

BRICKPLANT
PPMC & PRODUCTION
Using a Control Chart to Track Improvements

UCL
UCL
UCL

LCL
LCL

LCL

Jun-03 Jun-18

Process not centered Process centered Additional improvements

and not stable and stable made to process.

BRICKPLANT
PPMC & PRODUCTION
Course Review

 Kaizen means continual improvement.

 It involves incremental improvements in processes which
improve quality and customer satisfaction, this in turn improves
business performance.
 If an organizations products and processes are in good shape,
the continuous improvement efforts can be beneficial.
 If an organization is not in good shape, incremental
improvement may not be sufficient, major breakthroughs may
be needed through reengineering.
 There are many tools and techniques developed for quality
improvement.
 The PDCA cycle provides an effective methodology within
which to employ them.
 The underlying theme is that the quest for quality is never
finished.

BRICKPLANT
PPMC & PRODUCTION
END

BRICKPLANT
PPMC & PRODUCTION