Submitted by : Shadab 1020331 Sanghamitra 1020353 Flavia 1020344 Thomas 1020334 Vinika 1020357 Sweta 1020356 Divya 1020343

Definition
Kaizen is a system that involves all employees from strategic management to labourers to bring a little change by improving productivity, effectiveness and reducing waste. It is the philosophy or practices that focus upon continuous improvement of processes in manufacturing, engineering, and business management. In the business sense and applied to the workplace, kaizen refers to activities that continually improve all functions, and involves all employees from the CEO to the assembly line workers.

KAIZEN is a culture of sustained continuous improvement focusing on eliminating waste in all systems and processes of an organization. It begins and ends with people. It is a method that strives toward perfection by eliminating waste (MUDA) in the work place (GEMBA).  It eliminates waste by empowering people with tools and provides methodology for uncovering improvement opportunities and making small changes.  This is also a low cost approach, using simple quality control tools: Pareto, Ishikawa diagrams and PDCA cycle. The 5 main elements of kaizen: Teamwork Personal Discipline Improved Morale Quality Circle Suggestions for Improvement

Other Definitions
Kaizen A Japanese term meaning gradual unending improvement by doing little things better and setting and achieving increasingly higher standards ~ Lean Lexicon, ASQ Small improvements generated by hands-on workers through the application of a variety of structured, low-technology methods ~ Office Kaizen, ASQ

History of Continuous Improvement

After, world war II, Japan had to rebuild Experts from US visited Japan on an advisory role, including Dr. W. Edwards Deming. Problems of low morale, lack of funds, raw materials, etc prevailed in Japan. Based on his recent experience in reducing waste in U.S. war manufacture, advised the country. Taught Japanese businesses to concentrate their attention on processes rather than results. Many companies took the advice, including Toyota, and Introduced the concept of JIT and TQM.

Masaaki Imai
Known as the Lean Guru and the father of Continuous Improvement (CI) Pioneer and leader in spreading the Kaizen philosophy all over the world Authored the book Kaizen: The Key to Japans Competitive Success Now companies around the world use kaizen for greater productivity, speed, quality and profits with minimal cost, time and effort, to get results and to become recognized industry leaders.

Basic Kaizen concepts

Kaizen typically deals with Quality assurance Cost reduction Meeting production quotas Meeting delivery schedules Safety on the job New product development Productivity improvement Supplier management

7 types of MUDA
1. 2. 3. 4. 5. 6. 7. MUDA of over-production MUDA of motion MUDA of waiting MUDA of Inventory MUDA of processing MUDA of transportation MUDA of production rejects

Kaizen Cycle
The cycle of kaizen activity can be defined as: Standardize an operation Measure the standardized operation Gauge measurements against requirements Innovate to meet requirements and increase productivity Standardize the new, improved operations Continue cycle

Kaizen Process :

Kaizen Process :
Kaizen implementation allows for building of lean culture and also helps improve company performance. The four processes involved in Kaizen process are : Plan :  High level planning : Enterprise lean deployment strategy to the specific purpose that needs to be improvd and takes into consideration the timeline in which the improvement has to occur. Answers the questions of : What are the critical needs  How to focus on our resources  How to motivate and involve the team  How to sustain the improvements made.

Middle level planning : Value stream mapping :  Enables the company to identify and eliminate the waste.  Helps in stream lining the process, cutting down the waste and thus cutting lead times, increasing the quality, etc.

Event Level Planning :  Checklist and other documents to ensure that everything is in place and that each kaizen activity is conducted successfully.

Kaizen process
Select a business process area in which Kaizen will be implemented. Create appropriate goals for the team. Ensure that relevant area personnel are informed of the Kaizen plans. Ensure availability of relevant area personnel for participation on the Kaizen team. Provide a suitable working area. Ensure timely review and approval of the Kaizen team's recommendations. Ensure timely implementation of approved recommendations.

KAIZEN UMBRELLA

10 Principles of Kaizen
1. Say no to status quo, implement new methods and assume they will work 2. If something is wrong, correct it 3. Accept no excuses and make things happen 4. Improve everything continuously 5. Abolish old, traditional concepts 6. Be economical. Save money through small improvements and spend the saved money on further improvements 7. Empower everyone to take part in problems' solving 8. Before making decisions, ask why five times to get to the root cause. (5 Why Method) 9. Get information and opinions from multiple people 10. Remember that improvement has no limits. Never stop trying to improve

Two kinds of Kaizen

High Growth Economic

Western Management Style

Japanese Management Style

Value: Expressed in term of how the specific product/service meets the customers needs, at a specific price, at a specific time. Value Added: Activities that transform input into a customer usable output. The customer can be internal or external to the organization. The objective is to eliminate all non-value added activities in producing and providing goods or service

Value Creation through Kaizen

Why Toyota stands Out than Big Three

Those company can execute better than competitors at the micro level (process improvement) will be the winner.

Kaizen Methodology
Clear objectives Team process Tight focus on time Quick & simple Necessary resources immediately available Immediate results (new process functioning by end of week) Use of various planning tools to accomplish results

Two common Kaizen Tools

1.Kaizen Teian (Suggestion System) To solicit creative ideas from all employees at workplace To instill involvement and accountability 2.Kaizen Event To be a DNA or culture for process continual improvement To utilize knowledge and know-how of people at gemba.

Kaizen Teian Objectives

1.Employees involvement & empowerment Encourage employee to participate 2.Employee skill development for enhancing job performance (On-the-job-training) Optimize employee capability and creative power 3.Achieve benefits Emphasis the benefits from the suggestions

Kaizen Teian Implementation

Success Factors in Kaizen Teian & Kaizen Event Implementation

 Kaizen Event A few days, highly structured and coached intense attack on waste in a process or work area by a small group When to use Kaizen Waste sources have been identified (Low-hanging fruits) The scope of a problem is clearly defined Results are immediate and risk is minimal

Kaizen to Toyota is the elimination of three basic things like:  Muri (Overburden on employees)  Mura(Unevenness in production)  Muda (Waste)

Q1. Kaizen means improvement in work life, social life, personal life of a person. Explain how Kaizen can be useful to organizations to improve their operational efficiency and competitive advantages. KAIZEN means improvement. Moreover, KAIZEN means continuing improvement in personal life, home life, social life, and working life. When applied to the workplace KAIZEN means continuing improvement involving everyone - managers and workers alike. KAIZEN transforms companies into 'Superior Global Competitors'.

 Three functions should happen simultaneously within any organizations: Maintenance, Innovation, and KAIZEN. By maintenance, we refer to maintaining the current status, the procedures are set and the standards are implemented. People in the lower level of organization mostly do that, they maintain their standards. By Innovation, we refer to breakthrough activities initiated by top management, buying new machines, new equipment, developing new markets, directing R&D, change of strategy etc In the middle there is KAIZEN, small steps but continuing improvement. KAIZEN should be implemented by the lower/middle management and the workers, with the encouragement and direction of the top. The top management responsibility is to cultivate a KAIZEN working climates and cultures in the organization.

KAIZEN in Organization
Insemination of KAIZEN into the Organization 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.

Examples of Kaizen
Changing machinery layout - Something as simple as changing the layout on the production line floor can make a big difference in eliminating wasted resources. For example, arranging machines so that they are in a `U' shape design can eliminate the need for an operator as the layout of the machines make them more assessable to a fewer number of workers.

Making pieces of equipment your own with small modifications - Many times a home remedy or simple adjustment to standard tools or equipment can make a huge difference to the overall efficiency of the work that is being done. For example, a chef who attaches a paper towel rack to the side of an island prep area can save himself a lot of time by not having to move around to different areas of the kitchen in order to keep his workstation and himself clean.

 Increase the number of items per package - Increasing the number of products that you package in a box can reduce the amount of time that is taken when the machinery has to recognize the need to re-load materials into new boxes.

Use what you have working for you to your advantage - You can use forces that occur naturally to make your manufacturing job that much easier to perform. For example, you can let gravity work for you by creating shoots or holes where products can simply fall through to get re-routed to their appropriate positions in the recycling bins or at different points in the production line. Using this free energy saves time, money, and frustration.

Q.2) .Toyota people dont believe in perfection only improvement. Justify this statement by explaining the role played by Kaizen in Toyotas success.
Toyotas success in both the local and global markets was mainly because of its state-ofthe-art and well-planned operational strategies. Kaizen was the major contributor to the companys global success. The company had continuously focused on gaining a competitive advantage through implementation of innovative and path-breaking ideas on its production floors. Kaizen kept TPS, JIT, Kanban, and Jidoka working smoothly as an interlinked strategic operational plan. Toyota realized that its economic gains namely cost reduction and increased productivity, came because of supervisory staff and engineers. Group leaders, chief leaders and engineers were responsible for implementing Kaizen in the production phase and it was called organized Kaizen. Toyota became famous for its operational excellence as it continued to focus on improving the TPS and implementing tools such as Kaizen, Kanban and JIT over the decades, Toyota became world-renowned for its operational excellence. Enhanced quality and efficiency were the significant benefits.

 Q.3) In the early 1990s, Toyota employed Kaizen costing for cost reduction, which according to analysts was imposed on the workforce, leading to the labor crisis. Do you agree with the above statement? What steps should an organization take to avoid such problems in adopting practices such as Kaizen?

Answer
Yes, in the early 1990s Toyota faced labour crisis due to undue pressure on the workforce on account of Kaizen. Toyotas strong focus on improving productivity and production efficiency over the decades had created strained work atmosphere as the workers were reportedly over burdened. This led to an exodus of young workers from the company. Calculation of labour costs on production efficiency and unwavering focus on high quality became a force on the workers. Only permanent workers were considered while calculating the production efficiency. Wages= [BW (1 + PAC) (1+ OPC); where BW = Basic wage; PAC = Production Allowance Coefficient and OPC= Overtime Production Coefficient

Modified/Reinvented Kaizen
The modification began with the management deciding to allow plants to set their own annual production efficiency targets. After approval, these objectives became the Kaizen norm of each plant in terms of production efficiency. The method of determining the production efficiency was altered to make it less constrained as the standard time was fixed by measuring the time really required for workers operations whereas earlier standard time was fixed on the basis of the best standard time marked in the past. The try teams started considering the working segments where young female workers and aged workers were employed for fixing the standard time. The production efficiency determined w.r.t the activities of all workers including permanent employees, workers in Kaizen groups and maintenance team workers while earlier only permanent workers were considered for this category. The production engineering division developed the Toyota Verification of Assembly Line (TVAL) to measure the workload of all operations. Those operations whose TVAL value was higher than a certain level were discontinued as they were considered as heavy operations.

The reconstruction of the assembly line was as follows:

        

Construct an assembly line where workers could work easily and execute their operations. Organizing a human-centered TPS. Form a Kaizen mind in everyone so that he/she willingly does Kaizen. Toyota made sure that the new assembly line ensured: The absence of any operations difficult to execute. Quality and worker security assurance. Efficiency in logistics. Assembling a vehicle in the shortest time possible with minimum cost. High investment returns.

 In 1990, the company introduced the concepts of grade allowance (GA, 10% of standard wage) and age allowance (AA, 10% of standard wage). The GA and AA components resulted in the share of production allowance going down from 60% to 40%. In 1993, it once again changed its wage system: Blue Collar - [Standard wage = Basic wage (40%) + GA (20%) + AA (20%) + PA (20%)]. White Collar - [Standard wage = Basic wage (40%) + GA (40%) + AA (20%)]. The new wage system further brought down the share of production allowance from 40% to 20%.

ED implementation case

Phase 1 and Phase 2 of the implementation

Review every month

Results: There were 169, 105, and 101 KIs placed in the postimplementation calendar years 2006, 2007, and 2008, respectively. Seventy-six percent of KIs submitted thus far have identified a process problem. Fifty-three percent of KIs submitted have led to operational changes within the ED. Ninety-three percent of the resident physicians entered at least one KI, and 73% of these residents submitted more than one KI. Sixty-nine percent of the attending entered at least one KI, and 89% of these attendings submitted more than one KI.

Thank you