20130619 kaizen final
TRANSCRIPT
SIOM | Symbiosis Institute of Operations Management
Decoding KAIZEN Japanese Terminology.
Change for Better.
SIOM | Symbiosis Institute of Operations Management
Concept of Kaizen• People who perform the task are most knowledgeable about that process.
• It must be achieved with 100% participation.
• This team work encourages innovation and change.
• Helps break barriers and makes room for continuous improvement.
• Focuses upon Small but Continual Improvement.
• Approach towards higher standards in Quality enhancement and Waste reduction.
SIOM | Symbiosis Institute of Operations Management
Three Pillars of Kaizen
HOUSEKEEPINGWASTE
ELIMINATION i.e. MUDA
STANDARDIZATION
SIOM | Symbiosis Institute of Operations Management
1. HOUSEKEEPING
The following can be employed using the 5S methodology
5s includes
Seiri (Sort)
Seiton (Set in Order)
Seiso(Shine)
Seiketsu (Standardize)
Shitsuke (Sustain).
SIOM | Symbiosis Institute of Operations Management
2. WASTE ELIMINATION (MUDA)
There are seven types of wastes which are classified as:Muda of overproduction.Muda of inventory.Muda of defects (repair or rejects).Muda of motion.Muda of processing.Muda of waiting.Muda of transportation
SIOM | Symbiosis Institute of Operations Management
3. STANDARDIZATION i.e. PDCA Cycle
• PLAN : Identifying & Analyzing the problem.
• DO : Developing and Testing a Potential solution.
• CHECK : Study and Compare the results.
• ACT : Implementing the Improved solution fully.
SIOM | Symbiosis Institute of Operations Management
Elements of Kaizen Kaizen comprises of five basic elements:
TeamworkPersonal discipline Improved morale and employee satisfactionQuality circles Suggestion for Improvement
SIOM | Symbiosis Institute of Operations Management
Kaizen cultureCreating a synergy between Management and the shop floor /
operations teamThe CEO must spearhead Kaizen initiative.Management must commit required funds, time and other
resources for all employees right from grass root levels to top.Mapping results to processes
Processes are required to be set up to give a vivid picture to organizational members whether results of a particular Kaizen initiative can be directly attributed to that initiative.
BrainstormingOrganizational members need to brainstorm ideas and then
implement outcome of such brainstorming sessions so that everyone is able to see the problem and try solutions.
SIOM | Symbiosis Institute of Operations Management
Embedding Kaizen Culture
Establish the champion
Establish a governing committee
Start communication boards and newsletters
Regularly track Kaizen activities on a dash board
SIOM | Symbiosis Institute of Operations Management
Benefits of KaizenKaizen involves every employee in making change in most
cases small, incremental changesIt focuses on identifying problems at their source, solving them
at their source, and changing standards to ensure the problem stays solved
Kaizen reduces waste in areas such as inventory, waiting times, transportation, worker motion, employee skills, over production, excess quality and in processes
Kaizen Improves space utilization, product quality, use of capital, communications, production capacity and employee retention
Kaizen Provides immediate results. Instead of focusing on large, capital intensive improvements, Kaizen focuses on creative investments that continually solve large numbers of small problems.
SIOM | Symbiosis Institute of Operations Management
Drawbacks of KaizenIt’s not a programmed approach but a philosophical
approach.It doesn’t encourage radical changes but a gradual change
over a long period of time.It requires continuous monitoring ,supervision and
mentoring to maintain the spirit of kaizen.It works well when the average age of employees is low.
SIOM | Symbiosis Institute of Operations Management
Companies adopting Kaizen
GSK NASHIK
1. Corrective and preventive actions (CAPA) are formed.2. GEMBA is carried out in the form of miniature audits.3. Current issues and suggestions from the shop floor and
other departments are considered.4. This is done in such a way that daily day to day activities are
not affected.5. GSK is formulating a system called Glaxo Production
Management (GPM) system in lines with Toyota Production Management (TPM) system.
SIOM | Symbiosis Institute of Operations Management
Companies adopting Kaizen
FIDELITY INVESTMENTS
1. Fidelity Investments is the largest and best-known mutual fund manager in the United States.
2. Fidelity's commitment to Kaizen is reflected in its performance management and compensation systems.
3. Each fall, Fidelity companies establish business goals which are tiered through the company's various divisions down to the individual managerial level.
4. Progress towards goals is evaluated and adjusted on a monthly and quarterly basis.