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KAIZEN PHILOSOPHY

Pratik Basu6 ME- 60

B.E. Semester 8th Mechanical Engg.

Lingaya’s Institute Of Management & Technology

Presentation flow

Introduction to Kaizen Key Principles Key Implementation Concepts

5 S Deming or Shewhart Cycle (PDCA) Quality circles Kanban

TOYOTA Implementation Key Benefits Applications Future prospects

Introduction : What is “Kaizen”?

Kaizen means "improvement". It is a Japanese workplace philosophy which

focuses on making continuous small improvements which keep a business at the top of its field.

The philosophy involves everyone in the organization – managers and workers alike – and urges them to make never-ending efforts for improvement. For example, in Japanese companies, such as

Toyota and Canon, several suggestions per employee are written down, shared and implemented.

The Origin of Kaizen

The foundation of Kaizen was laid in Japan after the Second World War, when the country was attempting to rebuild infrastructure and rethink many systems.

Several American experts on workplace improvement including W. Edwards Deming and Joseph Juran came to Japan to lecture and teach.

Using information from these individuals regarding the TWI (Training Within Industry) programs , the concept of Kaizen began to be formed and it took off in the 1950s.

Kaizen : Key principles

The first is a heavy reliance on teamwork, in which everyone's opinion is valued and considered.

Workers also have strong personal discipline, and morale in factories must improve under kaizen.

Workers should also be confident about offering suggestions for improvement, even when a system appears to be functioning adequately

Kaizen recognizes that there is always room for improvement

Finally, the system uses quality circles, worker groups who meet and work together to solve problems and come up with innovative changes.

Kaizen : Implementation Concepts

Kaizen encompasses many of the components of Japanese businesses that have been seen as a part of their success.

Some of these concepts inspired by Kaizen are: 5 S The Deming or Shewhart Cycle (PDCA) Quality circles Kanban

“5 S” in Kaizen

“5 S” is a method for organizing a workplace, especially a shared workplace (like a shop floor or an office space).

1. “Seiri” (Sort): Tidiness, keeping only essential items.

2. “Seiton” (Set In Order): Orderliness, eliminate extra motion.

3. “Seiso” (Shine): Cleanliness, keep the workplace clean.

4. “Seiketsu” (Standardize): Standardize work practices

5. “Shitsuke” (Self Discipline): Sustaining, maintaining discipline and reviewing standards.

The Kaizen cycle

PDCA (Plan-Do-Check-Act) cycle

Also known as the Deming or Shewhart cycle

It a continuous never-ending process i.e. cyclic ad-infinitum

Quality Circles

A quality circle is a volunteer group composed of employees, who are trained to identify, analyse and solve work-related problems and present their solutions to management.

This improves the performance of the organization, while also motivating and enriching the work of employees.

First established in Japan in 1962 in the Nippon Wireless and Telegraph Company, it quickly became popular and spread to more than 35 companies in the first year.

Kanban

Kanban (meaning “signboard” or “billboard”) is a concept related to lean and just-in-time (JIT) production.

The concept got shape when Toyota observed how supermarkets operate. The supermarket only stocks what it believes it will sell; Therefore has

limited and only necessary inventory Signboards clearly indicate to shoppers where what is stocked; so the

customers can shop efficiently and complete their shopping in time. For a lean and efficient system, it is required that the production is

determined according to the actual demand. In situations where supply time is lengthy and demand is difficult to

forecast, the best one can do is to respond quickly to observed demand. This is where a Kanban system can help: It works as a communication

system which immediately provides information about changed demand through the entire supply chain.

Kaizen in Toyota

The Toyota Production System is known for it’s use of kaizen.

After World War II, Taiichi Ohno was charged with setting up machine shops for Toyota. He studied the Ford production systems. He analyzed the various productive measures and discrepancies in the system.

Based on the analysis, he outlined several production strategies for Toyota. These production strategies later became benchmarks for production practices across the world.

Toyota thus became one of the first companies in the world to adopt practices such as Kaizen. Analysts however feel that Kaizen kept TPS, JIT, Kanban and other practices working smoothly as an interlinked strategic operational plan.

Toyota’s use of Kaizen to solve labor crisis

In the early 1990s, Toyota was facing acute labor shortage

Toyota’s initial management focus was on increasing production efficiency through higher production levels with less number of workers. This resulted in increased stress and worker exodus

The global upsurge in car demand during 1987-1991 led to drastic increase in demand for labors

Toyota realized that it would have to rely on Kaizen for modifying its existing assembly lines to attract workers.

The company decided to change its working conditions to accommodate workers of more diverse nature

The management decided to allow plants to set their own annual production efficiency targets. Production efficiency measurement was based on worker’s production time rather than on best production time

Key Benefits of Kaizen

Widely applicable – Can be used in both manufacturing and non-manufacturing environments

Highly effective & results oriented - Kaizen events will generate quick results, Measurable results, Establish the baseline, and measure the change

Higher operational efficiency – Reduces wastage, like inventory waste, time

waste, workers motion Improves space utilization and product

quality

A Learning Experience – Every member of a Kaizen Team will walk away from the event learning something new. Encourages big picture thinking Results in higher employee morale and job

satisfaction, and lower turn-over.

Kaizen – A mixed bag

Why Kaizen works well for some… It has been suggested that Kaizen works particularly well

in Japan because it has a collective culture, and Kaizen relies on collective values.

The focus is more on improvement and refinement of existing methods, rather newer innovations.

And not so for others… People in more individualistic cultures (like in Western

corporations) may struggle with some of the basic principles of Kaizen.

Kaizen idea of improvement is contrary to the beliefs of some Westerners, who place a high value on the achievement and maintenance of perfection.

Kaizen can be applied to real life also…

Consider the case of a student’s bag. The items can be classified into

Notes and assignments Stationary (pens, notepads etc.) Other items like calculators, pen drive etc.

Regular checking of the stationary items ensures that the notemaking is not affected due to lack of stationary.

Keeping notes and assignments organized enables faster access to them.

Overall checking of bag at regular intervals ensures that no necessary items are missing.

Conclusion

“Kaizen” or “continuous improvement” should be a part of our everyday life.

The concept is simple but if properly applied can lead to significant efficiency improvements for organizations.

Kaizen and its associated concepts like PDCA, Kanban and Quality Circles have been critical to the success of large organizations like Toyota, Canon and Nippon.

Sources

www.wikipedia.org www.howstuffworks.com Masaaki Imai(1986). “Kaizen: The Key to

Japan's Competitive Success” McGraw-Hill/Irwin.

www.icmrindia.org www.toyota.com

Thank you.