Kaizen Teian. Culture of Continuous Improvement. Sammy Obara, Honsha.org LEAN CONSTRUCTION INSTITUTE LEAN CONSTRUCTION INSTITUTE

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1 Kaizen Teian Culture of Continuous Improvement Sammy Obara, Honsha.org

2 Kaizen Teian Culture of Continuous Improvement Agenda Introductions and purpose of workshop Kaizen back to basics Kaizen: Toyota s original concept How Kaizen fits in the TPS house Why use Kaizen Teian in your organization Examples of Kaizen from around the world How to start a Kaizen culture Discussions 2

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4 Corporate Responsibility Honsha promises that a high sense of satisfaction comes with making a difference in the lives of others. They also promise a new level of respect working with those who have already made such missions their own mission for life. I cannot measure how my respect for these special individuals and organizations has grown and crystalized because of my experience in Lean For Hope. Thank you. Toni Davies Ph.D. President at Davies Consulting, Inc. and LFH envoy. Wise Madness is a nonprofit organization that takes young kids off the streets and provides them with guidance and mentorship to help make wise decisions and to navigate through the crazy life we all live. Honsha provides Wise Madness with financial support and uniforms for the kids AME Associação Missão Esperança (Brazil) Honsha helped improve the logistics methods for the distribution of medicine to remote villages in the devastated and poor areas of East Timor. When the Democratic Republic of Timor-Leste was just four years old Honsha helped its government by conducting seminars and coaching sessions aimed at supporting service organizations. Toyota by Toyota Book All proceeds from the sale of this book are destined to help social purposes such as the ones on this page. Honsha extends its gratitude to the following coauthors who have agreed on forfeiting their revenue share.: S. Ansuini, G.Damiani, C.Fukamizu, R.Kitazuka, G.Lane, R.Martichenko, P.Muller, A.Norval, S.Obara, B.Plummer, A.Smalley and D. Wilburn.

5 Oct 8 15, 2017 EXECUTIVE DEVELOPMENT MISSION LEARN LEAN IN JAPAN

6 Do We Really Need Tools? 6

7 Why Do We Need Correct Tools?

8 Why Do We Need Correct Tools? Maybe we get poor quality result!!! 8

9 Using the correct tool is it enough? 9

10 Correct Tool in the Correct way is Important! 10

11 To achieve quality results!!! 11

12 Missing the Purpose 12

13 What is the purpose? 13

14 The Most Studied Company in The World 14

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16 Lead Time all we are doing is reducing the lead time line Taiichi Ohno Where can you help eliminate waste to shorten the lead time? here? here? here? here? here? here? Order Processing shipping delivery receive $ 16

17 Employee Engagement 1 Kaizen/day 1 Kaizen/week 1 Kaizen/7 Years 17

18 The Seven Wastes OVER-PRODUCTION MOTION INVENTORY WASTE CORRECTION WAITING TRANSPORT OVER-PROCESSING

19 Kaizen Teian Kaizen Event Kaizen Blitz Kaizen Breakthrough Kaizen in Batches Kaizen Week Kaizen

20 Where is your base line?

21 May/04

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23 What is the Purpose of Kaizen? Don t start it if you don t know the purpose KAIZEN

24 The Most Studied Company in The World

25 The three Purposes Reduce Waste Improve Quality Improve Safety KAIZEN

26 PURPOSE Reduce waste? Improve quality? Increase safety?

27 The average person spends over 600 days of his/her life looking for missing things 30 /day Access to parts is easy and visible: No locks No lids No doors

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29 PURPOSE Reduce waste? Improve quality? Increase safety? ROOT-CAUSE Does it address the ROOT-CAUSE?

30 ROOT-CAUSE

31 Root Cause Which stage is your company?

32 Root Cause WHY is the computer not working? Because it is not plugged in. SOLUTION: Plug it in!! The quick and easy solution. (so easy and quick that we don t mind repeating it all the time )

33 Root Cause- the 5 Whys Technique WHY is the computer not working? Because it is not plugged in. WHY is it not plugged in? Because the cable has been pulled out of the outlet WHY was the cable pulled out of the outlet? Because something got hooked on to the cable and pulled it out. WHY things get hooked on to the cable? Because the cable lies on the floor and gets in the way. WHY does the cable lies on the floor and gets in the way? Because it is too long. WHY is the cable too long? Uh?... I don t know SOLUTION a: Shorten the length of the cable SOLUTION b: Tape the cable on the wall SOLUTION c: Bring the computer next to the outlet SOLUTION: Plug it in!!

34 PURPOSE Reduce waste? Improve quality? Increase safety? ROOT-CAUSE Does it address the ROOT-CAUSE? STANDARDIZATION Is it STANDARDIZED? KAIZEN

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36 Without Standardization: BIG Improvements Effectiveness of improvement (decreases with time) Improvements are inconsistent Results are unpredictable Gains are not sustained Improvements become repetitive BIG improvements become small with time Time

37 Standardization: Will make improvements consistent Will make results predictable Will ensure improvements stay in place Will allow a continuous improvement instead of a repetitive one Standardization Small Improvements Small Improvements become BIG gains over time Time

38 A Small but Incremental Gains SMALL BUT INCREMENTAL GAINS Mon Tue Wed Thu Fri Sat Sun $1, $1, $1, $1, $1, $1, $1, $1, $1, $1, $1, $1, $1, $1, $1, $1, $1, $1, $1, $1, $1, $1, $1, $1, $1, $1, $1, $1, $1, $1, $1,000.00

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41 1 2 3 Is This a Kaizen? 1 Check if it addressed AT LEAST one of these areas: Problem Type SAFETY WASTE: Waiting Correction Overproduction Motion Ideas not used Check all that apply QUALITY Inventory Overprocessing Conveyance Kaizen = improvement + standardization Kaizen deals with root causes A Kaizen must address Safety, Quality or Waste. If you can quantify the benefits, chances are you improved the issue. Check if it addressed the ROOT-CAUSE: 2 Check if it is STANDARDIZED: 3 A Kaizen MUST go after the real causes of the problem. Superficial remedies result in unpredictable results. A Kaizen will not roll-back with time. It will be sustained through standardization techniques.

42 3K Principle 1.Kangae = Think 2.Kodo = Action 3.Kaizen = Improvement + standardization

43 3K PRINCIPLE Six way intersection in Miami, FL (cause was assumed to be lack of traffic lights) Before improvement: After improvement: 13 accidents in one year. 16 accidents in one year.

44 Kaizen Teian Structure Manila June 2016 The form The board The metrics Structure drives behavior 44

45 Structure drives behavior 1. The Form 2. The Board 3. The Metrics SAMPLE FORM 45

46 Source: Kaizen Teian 2 by Japan Human Relations Association

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48 Kaizen Type SAFETY WASTE: Waiting Correction Overproduction Motion Conveyance Check all that apply QUALITY Inventory Overprocessing Before After Standardization 48

49 Structure drives behavior 1. The Form 2. The Board 3. The Metrics Never doubt that a small group of thoughtful, committed citizens can change the world. Indeed, it is the only thing that ever has. Margaret Mead 49

50 Kaizen Board

51 Kaizen Board The Kaizen board: To be used for display and sharing of the Kaizens in progress and completed. This is a learning tool and team promotion opportunity. It is the responsibility of management to create an environment of sharing and participation. KAIZEN BOARD IDEA IMPLEMENTATION COMPLETED REWARDED Kaizen forms 1 EMPLOYEE Fill out the Kaizen form Put it on the board - IDEA 2 SUPERVISOR/MANAGER Kaizen approval - same day Moves approved Kaizen to the IMPLEMENTATION side 4 SUPERVISOR/MANAGER Comment on the improvement Motivate further Kaizens Recognize achievement 3 EMPLOYEE Implements the Kaizen Moves it to the COMPLETED side The task of the leader is to get his people from where they are to where they have not been. Henry Kissinger

52 KAIZEN BOARD Kaizen Board IDEA IMPLEMENTATION COMPLETED REWARDED Kaizen forms

53 Structure drives behavior 1. The Form 2. The Board 3. The Metrics Never trust quotes you read on the internet Albert Einstein 53

54 Kaizen Evaluation Metrics KAIZEN EVALUATION METRICS CRITERIA X LABOR TIME 2 Less than 6 hours 6 ~ ~ ~ 849 Over 850 hours Savings per month EFFECTIVENESS Sustainability 2 Effective to implementer only Effective to trained team members Effective to any operator, no training necessary. All root causes have been eliminated. Nontrained operators can perform the task easily. Error-proofing, documentation and other standardization techniques will ensure sustainability Deals with root causes IDEA Use of existing resources Use of internal resources Low implementation cost 1 Payback in 2 years ~ Payback in 1~2 years Payback in 6 ~ 12 months Payback in less than 6 months Zero Implementation Cost EFFORT Thorough implementation 1 Single implementation Not duplicated in other areas Duplicated in more than one area Duplicated all over the plant Duplicated in other plant(s) Implemented in all potential areas 100% of plants reached INITIATIVE 1 Suggested by the supervisor Copied from other areas Copied from Kaizenland Improved from Kaizenland Original solution shared with Kaizenland

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56 Kaizen Evaluation Metrics originally developed Sept. 2000; 5 KAIZEN th modification May 2001 EVALUATION METRICS Originally developed September 2000; 5th modification: May 2001 CRITERIA X SAVINGS 2 < $50 $ $500-1,499 $1,500-2,500 > $2,500 Savings per month; can be labor or material savings EFFECTIVENESS Sustainability; deals with root causes 2 Effective to implementer only Effective to trained team members Effective to any operator No training necessary All root causes eliminated Nontrained operators can perform task easily Error-proofing, documentation, standardization techniques ensure sustainability > $2,500 Error-proofing, documentation, standardization techniques ensure sustainability PAYBACK Use of internal resources; low implementation cost Payback in 2 years Payback in 1-2 years Payback in 6-12 Payback in less than Use of existing resources; Use of existing resources; 1 months 6 months falls within monthly budgetfalls within monthly budget EFFORT 1 Single implementation, not duplicated in other areas Thorough implementation Duplicated in more than one area Duplicated all over the plant Duplicated in other plant(s); Minimum (1) one plant reached. Duplicated in all plants. 100% of US plants reached Duplicated in all plants. 100% of US plants reached INITIATIVE 1 Suggested by supervisor Copied from Kaizenland Original solution, not shared with Kaizenland Original solution, shared with Kaizenland Teamwork, original solution shared with Kaizenland Teamwork, original solution shared with Kaizenland No rewards for: LEVEL POINT RANGE $ VALUE * Partial implementation A * Ideas not implemented; intentions are not rewarded B * Changes that do not improve safety, quality, or waste reduction C D Notes: E Up to Kaizen bonus replaced with evaluation metrics procedure. 2. Kaizen board looks at kaizens assigned an A or B before they are counted and rewarded. All levels of kaizens are board-reviewed for export selection. 3. Two reward systems. First, immediate dollar reward based on kaizen level; reward is divided between contributors of each kaizen. 4. Second, each contributor of a single kaizen will be awarded the total kaizen points received during evaluation (points will not be divided). Points will accumulate to 50 points. Those who have accumulated 50 points will be awarded $0.50 for each kaizen point; that is, $25 (50 points x $0.50). Awards will be gift certificates. * * * ort selection. $ VALUE oints will accumulate to ll be gift certificates. * * * P:\PPS\Kaizen\Kaizen Evaluation Metrics_4th modification.xls Revised Revised

57 MORE AND BETTER KAIZENS BETTER RECOGNITION KAIZEN EVALUATION METRICS Originally developed September 2000; 5th modification: May 2001 CRITERIA X SAVINGS 2 < $50 $ $500-1,499 $1,500-2,500 Savings per month; can be labor or material savings EFFECTIVENESS Sustainability; deals with root causes 2 Effective to implementer only X HIGHER REWARDS Effective to trained team members Effective to any operator No training necessary All root causes eliminated Nontrained operators can perform task easily 5 > $2,500 Error-proofing, documentation, standardization techniques ensure sustainability Level POINT RANGE $ VALUE A B 26 ~ C 15 ~ D 8 ~ E Up to 7 5 PAYBACK Payback in 2 years Payback in 1-2 years Payback in 6-12 Payback in less than Use of existing resources; Use of internal resources; low 1 months 6 months falls within monthly budget implementation cost Duplicated in more than Duplicated all over the Duplicated in other EFFORT 1 Single implementation, Duplicated in all plants. one area plant plant(s); not duplicated in other areas Minimum (1) one plant 100% of US plants Thorough implementation reached. reached Teamwork, original Suggested by Copied from Original solution, not Original solution, INITIATIVE 1 solution shared with supervisor Kaizenland shared with Kaizenland shared with Kaizenland Kaizenland Cumulative amount Shared amount No rewards for: LEVEL POINT RANGE $ VALUE * Partial implementation A * Ideas not implemented; intentions are not rewarded B * Changes that do not improve safety, quality, or waste reduction C D Notes: E Up to Kaizen bonus replaced with evaluation metrics procedure. 2. Kaizen board looks at kaizens assigned an A or B before they are counted and rewarded. All levels of kaizens are board-reviewed for expo ort selection. 3. Two reward systems. First, immediate dollar reward based on kaizen level; reward is divided between contributors of each kaizen. 4. Second, each contributor of a single kaizen will be awarded the total kaizen points received during evaluation (points will not be divided). Points will accumulate to 50 points. Those who have accumulated 50 points will be awarded $0.50 for each kaizen point; that is, $25 (50 points x $0.50). Awards willl be gift certificates. * * * P:\PPS\Kaizen\Kaizen Evaluation Metrics_4th modification.xls Revised $ 25 Gift certificate

58 Kaizen Results Evaluation Procedure T/M Kaizen coordinator Supervisors Plant Committee A Supervisors, GM, Kaizen coord. Submit Kaizen Evaluation B Evaluation Board After implemented Sort by levels C Report by department Post on the board Count, File and Sharing Investigate implementation Board evaluation on level A s Coordinator records general reports File and display Provide Reward and Recognition Top 5 to be shared Kaizen metrics Ensure timely recognition Receive recognition Prompt feedback and fast recognition: the key to sustain a Kaizen culture

59 1 2 3 Is This a Kaizen? 1 Check if it addressed AT LEAST one of these areas: Problem Type SAFETY WASTE: Waiting Correction Overproduction Motion Ideas not used Check all that apply QUALITY Inventory Overprocessing Conveyance Kaizen = improvement + standardization Kaizen deals with root causes A Kaizen must address Safety, Quality or Waste. If you can quantify the benefits, chances are you improved the issue. Check if it addressed the ROOT-CAUSE: 2 Check if it is STANDARDIZED: 3 A Kaizen MUST go after the real causes of the problem. Superficial remedies result in unpredictable results. A Kaizen will not roll-back with time. It will be sustained through standardization techniques.

60 How Good is Your Kaizen? How you coach will determine the future of the Kaizen System

61 How Good is Your Kaizen? How you coach will determine the future of the Kaizen System

62 How Good is your Coaching?

63 How Good is your Coaching? Team member will explain the future plan and Supervisors will coach Kaizen contributors. Others will coach supervisors on how to better coach. Good Coaching, Good Kaizens

64 Effectiveness 1 Savings 2 Idea 3 Effort 4 5

65 x Kaizen Type SAFETY WASTE: Waiting Correction Overproduction Motion Conveyance Check all that apply QUALITY Inventory Overprocessing Before After x x Water leak in many faucets: bathrooms, factory, lab and maintenance x Replaced gasket and valve Standardization Standardization across entire site, total of 12 faucets addressed. Leak was totally eliminated, saving the company ~$450/year

66 1 2 3 Is This a Kaizen? 1 Check if it addressed AT LEAST one of these areas: Problem Type SAFETY WASTE: Waiting Correction Overproduction Motion Ideas not used Check all that apply QUALITY Inventory Overprocessing Conveyance Kaizen = improvement + standardization Kaizen deals with root causes A Kaizen must address Safety, Quality or Waste. If you can quantify the benefits, chances are you improved the issue. Check if it addressed the ROOT-CAUSE: 2 Check if it is STANDARDIZED: 3 A Kaizen MUST go after the real causes of the problem. Superficial remedies result in unpredictable results. A Kaizen will not roll-back with time. It will be sustained through standardization techniques.

67 What is Culture?

68 What Culture is NOT Knowing which tool to use Using the right tool Using the tool correctly Knowing where to use the tool

69 What is Culture? Beliefs, expectations and shared values J. Gordon Author of A Diagnostic Approach to Organizational Behavior

70 We all know what to do Lean Culture We all know who does it We all know how to do it We all know why to do it We all know where to do it We all know when to do it and we all do it!

71 KAIZEN The meaning behind the word

72 Kaizen Type SAFETY WASTE: Waiting Correction Overproduction Motion Conveyance Check all that apply QUALITY Inventory Overprocessing Before After Standardization