Gemba Kaizen. A Commonsense Approach to a Continuous Improvement Strategy. Masaaki Imai. Second Edition. Me Graw Hill

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1 Gemba Kaizen A Commonsense Approach to a Continuous Improvement Strategy Masaaki Imai GEMBAKAIZEN* Second Edition Me Graw Hill New York Chicago San Francisco Lisbon London Madrid Mexico City Milan New Delhi San Juan Seoul Singapore Sydney Toronto

2 CONTENTS Preface Acknowledgments About Kaizen Institute xiii xvii xix CHAPTER 1 An Introduction to Kaizen 1 Major Kaizen Concepts 2 Kaizen and Management 3 Process versus Result 4 Following the PDCA/SDCA Cycles 4 Putting Quality First '.: 6 Speak with Data 7 The Next Process Is the Customer 7 Major Kaizen Systems 7 Total Quality Control/Total Quality Management.. 8 The Just-in-Time Production System 8 Total Productive Maintenance 9 Policy Deployment 9 The Suggestion System 10 Small-Group Activities 10 The Ultimate Goal of Kaizen Strategy 11 CHAPTER 2 Gemba Kaizen 13 Gemba and Management 14 The House of Gemba 19 Standardization ; 19 The Five S (5S) of Good Housekeeping 21 Muda Elimination 21 The Golden Rules of Gemba Management 23 Go to the Gemba First 24 Check the Gembutsu 28 Take Temporary Countermeasures on the Spot vii

3 viii I Contents Find the Root Cause 30 Standardize to Prevent Recurrence 31 Application of the Golden Rules 33 CHAPTER 3 CHAPTER 4 CHAPTER 5 f / Quality, Cost, and Delivery at the Gemba 37 Quality: More Than Just a Result 37 Quality Management at the Gemba 40 Cost Reduction at the Gemba 44 Improve Quality 45 Improving Productivity to Lower Costs 45 Reduce Inventory 45 Shorten the Production Line 46 Reduce Machine Downtime 46 Reduce Space 47 Reduce Lead Time (Throughput Time) 47 Role of the Gemba in Overall Cost Reduction 48 Delivery 48 Quality Improvement and Cost Reduction Are Compatible 49 Standards 51 Maintain and Improve Standards 51 Operational Standards 53 Key Features of Standards 54 Toyoda Machine Works 57 The Kaizen Story 57 The Toyota Business Practice: The Standard Problem-Solving Story at Toyota 58 Kaizen and International Quality Standards 61 The 5S: The Five Steps of Workplace Organization 65 Good Housekeeping in Five Steps 66 5S for the City: Civic Pride in Romania 67 A Detailed Look at the Five Steps of 5S 69 Seiri (Sort) 70

4 Contents IX Seiton (Straighten) 72 Seiso (Scrub) 74 Seiketsu (Systematize) 75 Shitsuke (Standardize) 75 Introducing 5S 76 CHAPTER 6 Muda 79 Muda of Overproduction 80 Muda of Inventory 82 Muda of Defects 82 Muda of Motion 83 Muda of Processing 83 Muda of Waiting 84 Muda of Transport 84 Muda of Time 87 Categorizing Muda in the Service Sector 87 Muda, Mura, Muri 90 Mura (Variation) 90 Muri (Overburden) 90 Removing Muda from Public-Sector Organizations CHAPTER 7 The Foundation of the House of Gemba 95 A Learning Enterprise 96 Suggestion System and Quality Circles 99 Building Self-Discipline 100 CHAPTER 8 Visual Management 103 Making Problems Visible 103 Staying in Touch with Reality 104 Visual Management in the Five Ms (5M) 106 Manpower (Operators) 106 Machines 107 Materials 107 Methods 107 Measurements 107 Visual Management to Manage Complexity 108

5 Contents Visual Management with 5S 109 Posting Standards 110 Setting Targets Ill CHAPTER 9 The Supervisors' Roles in the Gemba 113 Training Within Industries 113 Managing Input (Manpower, Materials, and Machines) 117 A Day in the Life of a Supervisor at Toyota Motor Manufacturing Kentucky 120 Morning Market (Asaichi) 126 Best-Line Quality-Assurance Certification 130 Defining Challenges 132 Pseudomanagerial Functions of Supervisors in the Gemba 132 CHAPTER 10 Gemba Managers' Roles and Accountability Kaizen at Toyota Astra Motor Company Role Manuals at TAM 136 TAM Group Leaders' Responsibilities 139 TAM Foremen's Responsibilities 140 TAM Supervisors' Responsibilities 140 Items That Need to Be Managed in the Gemba 141 Group Leaders' Daily Schedule of Activities: Examples from the TAM Manual 142 Group Leaders'Activities: Production, Cost, and Quality Examplesfromthe TAM Manual Foremen's Activities: Cost-Reduction Examples from the TAM Manual 145 Supervisors' Activities: Personnel and Training Examples from the TAM Manual 146 Section Managers' Roles and Accountabilities: Examples from the TAM Manual 148 The Conditions Necessary for Successfully Defining Roles and Accountability at TAM 148 Staff Development 149 On-the-Job Training 149

6 Contents XI Formal Classroom Training 150 Voluntary Activities 150 The Identification of Potential Problems 150 Hiyari Reports 150 Training in the Anticipation of Problems 151 The Benefits of Kaizen at Toyota Astra Motor Company 151 CHAPTER 11 CHAPTER 12 From Just-In-Time to Total Flow Management. 153 Just-In-Time at Aisin Seiki's Anjo Plant 154 Takt Time versus Cycle Time 156 Push Production versus Pull Production 157 Establishing Production Flow 158 The Introduction of JIT at Aisin Seiki 160 The First Step o/kaizen at Aisin Seiki 161 The Second Step of Kaizen at Aisin Seiki 162 Spreading the Benefits of JIT to Other Industries Total Flow Management 164 TFM Transformation in Company A 167 Just-In-Time at Wiremold...{. 183 CHAPTER 13 The CEO's Role in Kaizen 195 CHAPTER 14 Going to the Gemba 205 Gemba Kaizen and Overall Corporate Kaizen Two-Day Kaizen 207 Checklists as a Kaizen Tool 210 Gemba Kaizen Workshops 211 Case Studies 217 Lessons from a 20-Year Kaizen Journey 219 Changing the IT Culture at Achmea 225 Daily Kaizen at Tork Ledervin 229 Kaizen in Public Spaces: Transforming Rome's Airports 233

7 xii I Contents Sonae MC: The Silent Revolution 239 Surpassing Expectations through Kaizen at Embraco Kaizen at Oporto Hospital Centre: Making Patient-Centric Care A Reality 261 Kaizen Enables Innovation and Customer Intimacy at Densho Engineering 269 Kaizen Enables Innovation and Customer Intimacy Cutting Red Tape at a Public Utility: Enexis 275 People Power: Participation Makes the Difference for Electrical Manufacturer in China 279 Rossimoda: Kaizen and Creative Product Development 283 Finsa Uses Kaizen to Emerge Stronger from a Crisis Innovating with Kaizen at Group Health 301 Kaizen Helps Caetano Bus Deliver on Schedule 307 Kenyan Flour Producer Uses Kaizen to Increase Capacity, Improve Efficiency 313 Kaizen as the Foundation for Innovation at Medlog..317 Growing with Kaizen at Supremia 323 Exceeding Customer Expectations at Walt Disney World /. 329 Kaizen Experience at Alpargatas 335 Transforming a Corporate Culture: Excel's Organization for Employee Empowerment 345 Quality in a Medical Context: Inoue Hospital 353 The Journey to Kaizen at Leyland Trucks 359 Tightening Logistics at Matarazzo 369 Stamping Out Muda at Sunclipse 373 Housekeeping, Self-Discipline, and Standards: Tokai Shinei Electronics 381 Solving Quality Problems in the Gemba: Safety at Tres Cruces 389 Glossary 397 Index 407 Worldwide Contact Information for Kaizen Institute Consulting Group 423