KAIZEN FROM START TO FINISH?

1 KAIZEN FROM START TO FINISH? Vinay Goyal 2 Disclaimer This presentation has nothing to with my current employer and its internal practices. I will try to avoid sharing names and internal practices of my previous companies during my presentations (unless they no longer exist) All of the companies I worked for or with were successful companies in their respective fields A copy of this presentation will be posted on Section website Part I and II presentation slides are already posted on section website http://asqorangeempire.org/ 1

3 Presentation Outline Due to the nature of the topic: This was a Three part Presentation Part I: (In August Clinic) What is Kaizen? What are the key definitions, terminologies that are commonly used with Kaizen? Part II and III (In September and October Clinic) Kaizen Planning Management Support Team Building Implementation Part IV Case Studies and Additional More case studies Achievements and Lessons learned Those who have been part of the Kaizen This is an interactive session Please feel free to share your success (or lesson learned ) story If you have any questions, please feel free to discuss, email me at vinaygoyal@sbcglobal.net 4 Those who are new to Kaizen Please feel free to ask questions We have 2 guest presenters today James McNamara slides cannot be shared Bhavna Mantha slides are included 2

Any Questions from the Previous Clinics? August, September and October Clinic Presentation Slides are posted on section website If you have any questions, feel free to discuss with me Last month someone from the audience made a statement that the quotation You must be the change you want to see in the world was not from great Indian Philosopher and Leader Mahatma Gandhi Indeed the guest presenter was correct. This classic quotation is from Mahatma Gandhi. You may never know what results come of your action, but if you do nothing there will be no result 5 6 Quick Review Literal meaning of Kaizen is Good Change (IN English: Improvement) We can call it Continuous Improvement or Japanese Philosophy Kaizen is a A Mindset, An approach, A conviction, A way of thinking 3

7 Quick Review Kaizen (good change) has no boundaries It can be applies at Home Personal life Any kind of business environment Relationship between two countries Technology Healthcare Environment War and Peace Literally every where 8 Quick Review Does Kaizen mean to improve bottom line results In CEO s or CFO s terms $$$ No, it is to bring a change and to make it good (or good change) Good change does not always mean $$$ Good change can be: Improve efficiency Automation Customer satisfaction GPS, Power windows, Alarm as standard item in cars Improve Safety Human and Environmental 4

9 Quick Review Improve efficiency Automation Transportation, Inventory Management Motion of the Operators, Wait Over-processing Over-production Defect Short term automation is expensive but long term it will be more economical Customer satisfaction Seismic compliance, waste water analysis, User friendliness Improve Safety Human and Environmental Less burden on medical cost, less burden to keep you healthy and therefore on the society 10 Quick Review Unfortunately short and long term Kaizen results (gains) in CEO or CFO terms $$$ are so small or transparent that they often go un-noticed People do not get due recognition No incentive to do a good job Employees stop sharing improvement ideas Instead of being a leader, they become a follower and start depending on instructions from someone Attitude becomes: You tell me what do you want and I will get make it happen Leaders (sitting in their offices) start making decisions Putting unrealistic demands on employees Making policies and procedures that are confusing, and not easy to follow Start thinking that people who carry out the work Either do not have ideas or Not worth to ask for their opinion 5

11 QUICK REVIEW Examples 1993 I was new to Quality (from Design, test Engineering, Customer Service to Reliability) ISO 9000 About 300 employees, 3 shift, 24/7 operation Not all, but some procedures were there but either They were like show piece Never revised or updates since their first draft Did not match with the current practices Did not include changes Did not cover everything they do Surprisingly There were no drawing controls Multiple revisions were floating around People were using redlines that were incorporated long time ago 12 QUICK REVIEW First and foremost We got an approval (blessing) from the CEO and other senior executives Quality starts from the top (and from the middle or bottom) Formed a core team (cross functional) Standing meeting to monitor progress Looked for Quality manual, procedure, work instructions, records We need for ISO 9000? What we have? Gap Analysis Manager were assigned to write the procedures and work instructions for their respective areas It was a disaster 6

13 QUICK REVIEW Why it was a disaster? They were very high level and most idealistic procedures you could imagine on the face of this earth Did not match with the current processes Often Managers could not explain their own procedures So, I spoke with the CEO Hired a writer Met with each department supervisor and leads Asked them to write down their processes in simple words and sentences Technical writer was asked to keep them to 6 grader English Review with rest of the department employees Made a few changes released them 14 QUICK REVIEW In less than a month We have had Quality Manual Procedures Work Instructions Record forms Since they were developed by the people on the production floor (or really carry out the work, training was just minimal) In three months we called the registrar for a full audit With just over a month s records We passed the audit (with a long list of minor findings) 7

15 QUICK REVIEW Lesson learned Review the requirements what applies to you Have a vision for the most perfect and idealistic goal (perfection) But at some point get out never ending discussion and planning mode Start Taking action Small increments (Kaizen approach) with a clear vision for perfection one day Try in small parts, see if it works If it does, expand it If not, take a different approach Include people from all areas Cross functional Top to bottom Get the fear out let the people speak up their mind Recognize for good idea even your worst enemy 16 Key Things to Remember about Kaizen Quality starts from the top You need executive approval However you can improve anything within your control starting point Always keep looking and analyzing how things can be improved Short term (with current resources), Long Term (with some significant resources requirements) The way things are done today can be improved May be in overall picture this is not a top priority but do not let it go from your radar screen balance out your resources (business decision) Low hanging fruits require minor changes Justify in terms of $$$ (short and long term) - ROI 8

17 Key Things to Remember about Kaizen Impress your immediate boss Do not wait for instructions (take the lead in changing anything that is within your control for a good change) Your action should speak for itself Do not get dis-hearted You may not get the right recognition Someone else may take the credit for your work If it is your idea and thought, someone will recognize your efforts sooner or later you can speak with passion and confidence to Your management Potential employer Like I am standing in front of you You may agree or disagree, but that worked for me and therefore I am sharing with you 18 Key Things to Remember about Kaizen Include everyone Who are directly and indirectly related to that process Top to bottom Leave your ego and preconceived idea at the door Be a good listener and observer Welcome thoughts and idea Let other people feel (those who are shy) feel comfortable to share your view in public or private Give due credit Recognition is more valuable than monetary reward Learn how to run meetings Forming, storming, norming and performing Conflict resolution, how to discipline/limit distracting members 9

19 Key Things to Remember about Kaizen 5Ws and 1H 3 Mu s Muda, Mura, Muri, The following three charts Roles and Responsibility in terms of resources Management, middle management, Supervisor and Workers and Standardization with Kaizen approach Quick Review -, Invention, Kaizen and Standardization Maintenance: By Management Maintenance: By Workers 20 Management Maintenance Task: Establish Policies Rules Directives Procedures Monitor They have been followed People are able to follow but do not follow Introduce Discipline People are unable to follow Take appropriate actions Training Review and Revise 10

Quick Review - Kaizen versus But the reality the actual progress achieved through innovation generally follows the pattern Why?: Once a system is placed as result of innovation Deteriorate unless continuing efforts to Maintain and Improve Supported by the Management Kaizen Kaizen 21 Kaizen It lacks the Kaizen strategy go along with it. Quick Review - Kaizen versus If standardization is just to maintain the status quo (existing status of affairs) Standard Standard Standard 22 Kaizen efforts not only maintain the standards but also take them to new heights 11

23 ASQ Section 0701 Case Study I shared quite a few case studies in my previous presentations They are real and no fabrications Except I did not mention company s name Used the different numbers to show the example 24 MORE CASE STUDIES You can try it if applicable 12

25 Kaizen Case Study 4(a) ASQ 0701 Having the meeting on 2 nd Tuesday of the month Rain or Shine Is this a Kaizen approach Yes People can work around with their schedules Members and Leadership Committee members 26 Kaizen Case Study 4 Try at work If you chair a meeting (or attending a meeting which keep changing the day and date) 1. Make it a standing meeting on one fixed day of the month e.g. 1 st Friday of every month at 8:00 (or whatever the day and time convenient for most members) You team member participation will go up 2. If member cannot participate he or she should delegate to someone who can represent him or her It will further improve team members participation 13

Case Study Single Piece Manufacturing Ideally Single piece manufacturing has the maximum benefit when you start from one end and finished product (including packing and labeling) is done at the other end Other words ready to be shipped But single piece manufacturing concept is Wherever possible (Kaizen approach small increments) Combine operations Reduced excessive handling (and all Muda, Mura and Muri) 27 Case Study Single Piece Manufacturing Video Clip Three Processes, Process 1 and 2 have In and Out. Process 3 finished product 28 14

29 Case Study Single Piece Manufacturing Video Clip Kaizen Kaizen II http://www.youtube.com/watch?v=jolhkse8sfu 30 Questions vinaygoyal@sbcglobal.net Presentation slides will be posted on section website within 2-3 days Do you want me to hold one more session in November on Kaizen Case studies Examples 15

KAIZEN : A Success Story Part 2 Bhavna Mantha ASQ Dinner Meeting, 12 Nov 2013

One Piece Flow and The Kanban System Removal of waste suggests that there should be a continuous goal to reduce inventory One-piece flow : optimum, reduces inventory to minimum Where one-piece flow is not possible Kanbans can be used to pull the correct amount of units at the right time 2

Push and Pull System Important Aspect: Right amount of inventory at all times. Push System: In the push system, goods are manufactured in anticipation of customer orders Pull System: A pull system triggers production to manufacture only what the customer needs, when they need it. Pull Systems/Kanban control the flow of resources by replacing only what has been consumed. Kanban (literally signboard or billboard) is a scheduling system for lean and JIT production. 3

KANBAN Concept Empty Kitchen Kanban Refill Office Kanban 4

E-KANBAN in Manufacturing Electronic kanban : Signaling system that uses a mix of technology to trigger the movement of materials Differs from traditional kanban in that it uses technology to replace traditional elements such as kanban cards with barcodes and electronic messages BINS with a Red Kanban Card ERP System e-kanban screen Reduced lead time from 1 week to 1 day Reduced inventory by 35% Lowered Total Cost 5