kaizen 101 continuous improvement

改善Abdulrahman Alghamdi

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改 善KAI ZEN

To Modify, To Change Think, Make Good, Make Better

= KAIZENMake It Easier By Studying It, And Making The Improvement Through

Elimination Of Waste.

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Can you save 500,00 SR

out of your salary ?

Assume you have 20 years to retire , can

you make it ?

Can you safe 10 SR

Every day ?

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100,000

200,000

300,000

400,000

500,000

600,000

700,000

0% 73,000

5%120,691

6% 134,267

10%209,054

20%681,411

Can you increase Your savings to

1.5 million SR?

Can you keep saving 10 SR/ Day

For 5 more years?

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200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

1,800,000

73,000 120,691 134,267 209,054

681,411

91,265 174,220 200,272

358,984

1,722,751

20 Years 25 Years

Think

BIG

Think

BIG

Think small

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Affect BIG

Think Small

Typical Improvement Opportunities Available

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Improvement Approachesof Typical Companies

Leveraging Opportunities At All Levels

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???? Ask questions ????

• How can we …….

• KISS

• Think small

• Act

• Problems are opportunities to LEARN• Hiding problems undermines the system

“No Problem” “No Problem” is problem

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Most common mistake

Jumping from “problem” to “solution” without clear understanding and analysis

PROBLEM

SOLUTION

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KAIZEN ( 改善 ) continuous improvement

Diagram by Karn G. Bulsuk

PCDA Cycle

• Plan: For Improvement• Do: making improvement as planned • Check: is the customers satisfied with

the improvement?• Act: how to approach mistakes and

complaints

Develop A High-Performance Team!

ImproveQuality

DecreaseCost

Improve Productivity

DecreasePrices

IncreaseMarketShare

GrowThe

BusinessWith Better

Quality & LowerPrice

Quality’s Chain ReactionOur Problem is Quality!

W. Edwards Deming

How do you organize for Quality?

Three Methods To Improve Quality

1. Improve The System: Improve the Process that creates the product, or service.

2. Distort The System: Get the demanded result, but it will only be short lived.

3. Distort the Figures: Use creative accounting to hide rework and waste.

CHOICES 2 & 3 ARE THE EASYEST BUT, THEN AGAIN, “SURVIVAL IS NOT MANDITORY”.

W. Edwards Deming

What is a System?

A “System”: A network of inter-dependent components (sub processes) that work together to try to accomplish the “Aim” of the “System.” The OUTCOME of any “System” pre-exist in the methods of that “System.”

The Organization As A System

MANAGEMENT’S JOB IS TO:

• Improve The System•Improve The People Working In The System!

Kaizen and Management

TopMgnt

MiddleMgnt Supervisor Worker

Innovation

Kaizen

Maintenance

The Five Main Elements Of KAIZEN

• Teamwork• Personal Discipline• Improved Morale• Quality Circles*• Suggestions For Improvement

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*Quality Circles : a volunteer group composed of workers , under the leadership of their supervisor , who are involved to identify, analyze and solve work-related problems and present their solutions to management in order to improve the performance of the organization

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KAIZEN EVENT

KAIZEN EVENT

• Increase awareness of continuous improvement in our teams .

• Introducing the concept• Coaching when needed

• Encourage team members to be involved in improvement

• Personal level• Team level

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Kaizen Event Principles

• The goal of a Kaizen Event is NOT to create a PERFECT process. The goal is simply to create a better process.

• A Kaizen Event does not present the luxury to think of BIG, EXPENSIVE SOLUTIONS.

• Continuous Improvement means :• Simplify• Combine• Eliminate

Kaizen Mindset!

• Throw out all fixed ideas about how to do things!

• Think of how the new method will work - not how it won’t

• Don’t seek perfection. 50% on the spot is excellent!

• Correct mistakes the moment they’re found!

• Ten people’s ideas are better than one person’s!

Roles & Responsibilities• Facilitators ( us )

– Focus on participant expectations– Keep participants and Kaizen Event on track– Facilitate application of training to Kaizen Objectives– Relentless pursuit of learning from YOU!

• Participants ( our teams )– Ask questions– Challenge status quo– Actively apply new knowledge/skills to MAKE

CHANGE HAPPEN!

Continual Improvement Flow Diagram

Define ProblemDefine

Problem

Identify Waste in Current Process

Identify Waste in Current Process

Conduct Gap & Root Cause

Analysis

Conduct Gap & Root Cause

Analysis

Measure Current Performance

Measure Current Performance

Define Should-BeProcess

Define Should-BeProcess

Improve Current Process

Improve Current Process

Develop Measurements

for Success

Develop Measurements

for Success

Standardize Operating Procedures

Standardize Operating Procedures

Develop 30 Day Action Plan

Develop 30 Day Action Plan

Expose ProblemsExpose Problems

Find theRoot CauseFind the

Root Cause

ImplementChanges

ImplementChanges

StandardizeWork

StandardizeWork

Do

It

Do

It

How Would You Improve This Process?

Who is the customer?

What is their short term need?

What is their long term need?

How can we improve the process?

One Potential Solution...

Short term solutions can create long term problems.

Kiazen is not only about working on adding a value ,

work on elimination of waste

Waste - Defined

• Any activity that consumes resources but creates no value.

• Anything that the customer will not pay for•

• Anything that does not show up in the customer experience.

Operational Cycle Time

VA NVA

VA

NVA

NVAVA

Typical Company

Traditional Improvement

Waste Reduction

Original Lead Time

Minor Improvement

Major improvement

Time

Improvement Practices

Buying bigger, faster processing equipment addresses only the small value added portion of work performed. Concentrate on eliminating non-value added work to achieve major improvements in lead time.

$$$$$$$$$$$$$

• VA = Value Added Function or Activity• NVA = Non-value added Function or Activity

KAIZEN Hero

How to create Kaizen heroes ?

• Check the performance of each member NOW

• Motivate everyone to IMPROVE• Not to be the first or highest

• Reward the highest growth• Usually will not be the first

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THANK YOU

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