Transcript
The KAIZEN Challenge
GEMBA KAIZEN PHILOSPHY
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Definition of KA KAIZEN IZEN
KAI
Change
ZEN
Good (for the better)
KAIZEN = Continual Improvement 2
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Definition of KA KAIZEN IZEN
KAI
Change
ZEN
Good (for the better)
KAIZEN = Continual Improvement 2
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K A I Z E N
major part of working culture Doing without realising it
continuous improvement / on-going improvement.
involves everyone ± top management, managers and workers of all levels. levels.
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WHY
and HOW did KAIZEN helped Japan become A Major Global Player.
Business Environment Globally In the 1960¶s and early 1970¶s, unprecedented growth with tremendous demand for new technologies and new products. R e-Engineering
strategy shows best results
Rapidly expanding markets Consumers more towards quantity than quality. ³Products sell by themselves´ There is abundant and low cost-resources A belief that innovative products could offset sluggish
performance in traditional operations. Management more concerned with increasing sales and market shares than with reducing cost. 4
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The oil crisis in 1970s!!!!
The new situation (70¶s) :
Cost of material, energy and labour - Sharp increases
Overcapacity
Increased competition in saturated or dwindling markets (sunset industries)
Consumer values demanding quality first
The need to introduce new products more rapidly
The need to lower breakeven point
of production facilities
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To a company, this meant
Increased cost of resources
Stiffer competition
Quality level achievement strategic to win customers
The need to develop customer-orientated products and services faster than ever before.
Delays in adopting the latest technology are costly
Delays in adopting improved management techniques are costly
Japan¶s KAIZEN Strategy was able to meet the challenges 6
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The Challenges Facing Us in the 21 st Century 1. Need for high flexibility to respond to market changes and customers¶ requirements 2. Greater control for investments and the need for high returns on investments 3. Faster life cycle of products 4. Increasing cost pressure and price wars 5. Global relocation to countries of mostbenefit, e.g. China
KAIZEN strategy can work for any company that takes advantage of the Kaizen tools and turn them into a competitive advantage. 7
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The Kaizen Strategy No cultural factors Many Japanese management strategies succeed simply because they are good management practices. Over
the last thirty years, many companies in many countries worldwide (including Malaysia ± Look East) have successfully adopted them. The lack of cultural bias means that these practices can be just as successfully implemented anywhere. The difference is not one of nationality but one of mentality.
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Problem Recognition o recognition that AN Y and EVER Y company has problems in their operations. o corporate culture ³everyone can freely admit these problems.´ o problems become opportunities for improvement and solutions. o They will not be hidden, covered up or neglected.
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Problem Solving
problems as opportunities for improvements and solutions.
problems are collective responsibilities to be solved together.
Cross-functional problems (involving a few departments, such as design or launching new products) in Western management are seen in terms of conflictresolution.
apply systematic and collaborative approach for cross-functional problem solving. 10
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Cus tomer
Driven
management must satisfy the customer and serve customers¶ needs if it is to stay in business and make a profit.
Customers¶ concerns include the critical areas of cost, quality and scheduling.
All Kaizen activities should eventually lead to increased customer satisfaction.
³Customer is King´
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Proce ss Orientated Everyone is involved in change every day ³T here will be no progress if you keep on doing things exactly the same way all the time .´
Kaizen generates a process-orientated way of thinking
Management supports and acknowledges people¶s process-orientated efforts for improvement.
Contrast to Western management practice of reviewing people¶s performance strictly on the basis of results and not rewarding the effort people make. 12
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KAIZ EN
is not T otal Corporate Strategy
Kaizen does not
REPLACE
Corporate Strategy.
e.g. considerations of Product design and marketing strategy, innovations and diversifications
Important for top management to always check actual market conditions and trends, information from customers and competitors.
Identify the trade cycles (cyclic conditions or product life cycles ± sunrise and sunset industry/technology)
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KEY POINTS WORK CULTURE
Kaizen ±
CONTINUOUS IMPROVEMENT INVOLVES EVER YBOD Y Re-Engineering
-
TECHNOLOG Y DRIVEN THRIVE ON HIGH and FAST GROWTH IN ECONOM Y
Kaizen Strategy
Problem Recognition Problem Solving Customer Driven Process Orientated Part of Total Corporate Strategy 14
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KAIZEN And MANAGEMENT
Management has two components Management works to MAINTAIN its operations And Management works to make IMP ROVEMENTS 15
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Maintenance :
activities to maintain current technological, managerial and operating standards
Management first establish policies, rules, directives and procedures (Standard Operation Procedures ± SOP)
Ensure compliance by workers.
Enforce through discipline if needed
Management provide training or review
Revise
the standard so that people can follow it. 16
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Kaizen :
Kaizen is incremental improvements that is continuous
Many small improvement steps lead to total big step
Improvements are made with little cost involved
It involves all the employees at all levels
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Improve ment : ³activities directed toward improving current standards.´ Two components ± Re-ENGINEERING and KAIZEN
Re-ENGINEERING 1.Involves a drastic improvement to current conditions 2.Large investment in new technology / equipment 3.Long periods in between these innovation jumps 4.Specialist and selected top people are involved only
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MAINTENANCE And IMPROVEMENT
WHERE How
TO DRAW THE LINE??
much of your capability is used for each? And How
about the whole organisation? 19
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All Job Functions has the two components
Top Management Middle Management
I mprovement
Supervisors
Maintenance
Workers R esponsibility
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and Contribution
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GEMBA KAIZEN Perception of Job Function I mprovement
Top Management Middle Management
KAIZEN
Supervisors
Maintenance
Workers
R esponsibility
and Contribution
All levels of employees can do KAIZEN Some will do Re-Engineering 21
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Western
Perception of Job Function I mprovement
Top Management Middle Management
Maintenance
Supervisors Workers R esponsibility
and Contribution
Some will do Re-Engineering All levels of employees do maintenance 22
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Kaizen Nurtures small and ongoing changes (alive, like a flowering plant)
Kaizen Needs no large investment to implement Needs continuous effort and commitment. 23
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KAIZEN Incremental But Continuous Progress
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Re-Engineering -
like a volcano that erupts in abrupt explosions from time to time.
Ideal pattern ± the ³STEP´
Time
Ex :
Capacity for new machine 3000/day Quality of new products when set up 10,000ppm R e liability ± µzero breakdown¶ 30,000 hrs/mth Sales volume 3 million pieces/month 25
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R E-ENGINEE NG ENGINEE RI -
Dramatic But Intermittent Progress
THE
IDEAL
Higher
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Standard Achieved Through Re-engineering Is Subject To Deterioration Unless Continuing Eff orts Are Made First To Maintain It And Then To Improve It GMP Quality Consultants, We turn Knowledge into Practices
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After implementation of a new system, it starts to deteriorate
Performance Drops
Actual
pattern from R e-Engineering
Time
Benefits of Re-Engineering lost with time Unless Effort is made to MAINTAIN and IMPROVE the standards 27
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Re-Engineering
Alone
What
should be (Standard) Maintenance
What
should be (Standard) W hat actually is
Re-Engineering
Maintenance Time
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Re-Engineering plus
KAIZEN
KAIZEN
Re-Engineering
KAIZEN Re-Engineering Time
Kaizen - constant effort not only to maintain but to upgrade standards Every new standard is temporary, only a stepping stone to the next improved one. 29
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NG KAIZEN PLUS R E-ENGINEE ENGINEE RI - Desirable Progress By Combination Of Two Opposing Methods MAINTENANCE
R E-ENGINEE RI NG
KAIZEN MAINTENANCE
R E-ENGINEE RI NG 30
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People are Biggest Assets Kaizen depends on everyone doing their little bit to move the mountain Skills and Experience makes workers the experts in their process Investing in Kaizen means investing in people Kaizen is people-orientated I n
contrast innovation is technology- and money-orientated.
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Features Of Kaizen v s R e-engineering Emphasis
Kaizen
Re-engineering
Effect
Long-term But Undramatic
Short-term But Dramatic
Pace
Small Steps
Big Steps
Timeframe
Continuous And Incremental
Intermittent
Change
Gradual And Constant
Abrupt And Volatile
Approach
Group Efforts
Individual Ideas And Efforts
Involvement
Everybody
Selected Few
Mode
Maintenance And Improvement
Scrap And Build
Know-how
Conventional Know-how
Technological Breakthrough
Requirement
Little Investment
Large Investment
Orientation
People
Technology
Evaluation
Process And Efforts
Results
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Kaizen and QC
Quality Control (QC), the old view
:
1. Inspection of finished goods and products. 2.
Only
concerned for productquality control
3. This is the narrow viewpoint of QC 33
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Quality Control in Gemba Kaizen Quality Control - beyond prevention of defects from reaching the customer. Quality Control are the goals of the company : To provide product s and s er v ic es that satisfy customer requirements and earn customer trust
Steer company towards higher prof it ability by improving internal management. P rosperity to All T ogether.
Help
employees fulf ill t heir pot ent ial for achieving the corporate goal through policy deployment and voluntary activities. Mankichi Teteno (President of Japan Steel
) 34
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Centered on improvement of managerial performance at all levels, like : quality assurance cost reduction meeting production quotas or targets meeting delivery schedules safety Human Resources development new products development productivity improvement supplier management
KAIZEN is the spirit of Quality Control 35
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K aizen
Quality I mprovement Cycle.
Building quality into people means helping them become KAIZEN-conscious. KAIZEN Quality Improvement Cycle is used irrespective of cross-functional or functional problems. 1. Identify the problem
1 4. Identify the next problem to tackle
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2. Standardize results to prevent reoccurrence
3. Use problemsolving tools for counter-measures
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K aizen
Quality I mprovement Cycle.
Practice cycle continuously to build discipline
By going through these cycles continuously, it becomes a habit in action, leading to habits in thinking and finally people become Kaizen-minded Quality Cont rol t hen goes beyond prev ent ion of def ect s f rom reac hing t he cus to mer.
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4 3
1 2
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KEY KAIZEN CONCEPTS UNDERSTANDING and PRACTISING KAIZEN CULTURE THROUGH
KAIZEN KE Y PHRASES
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Speak with Data Kaizen emphasises the use of data. Every thing can be put down to a number (quantified) and every number can be given a cost (costing).
We
should talk with data and facts When you see data, doubt it! When you see the measuring instrument, doubt it! When you see chemical analysis, test results, doubt it! There are such things as false data, mistaken data and immeasurable factors. Kaoru Ishikawa (author ³Japanese Quality Control´) 40
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Q ua lity Fir st , N ot Profit Fir st Reflects
the belief in lity for Q ua lity· s s ake ´ ´Q ua a nd
n for K aize n· s s ake .µ ´ Kaize
If you take care of the quality, the profits will take care of themselves. Quality here refers to the broader meaning of quality, including q uality assurance, cost reduction, efficiency, delivery and schedule, safety and employee¶s morale, etc. Seeking improvement for improvement¶s sake is the surest way to strengthen their companies¶ overall competitiveness.
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Managing the P revious P rocess Go back to the previous process to seek the cause of a problem at your process. ³WHY did this problem reach my process?´ Problem solving methods are used e.g. 5 WHYs, 5W 1H, Improvements comes from being aware of what comes from the previous process. ´YOU D O, I CHECK!µ
There should be no assumption of the quality that reaches us. Gemba!
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T he
Next P rocess is My Customer.
Process has become impersonalized. No feeling.
Nev er s end def ect iv e par ts to those in the following process.
Be sincere enough to admit our own problems ± claim ownership of your process
Do everything in your powers to s olv e them. ´I D O, I CHECKµ
I am the manager of my proc ess . Assuring quality to each customer at each stage will assure quality in the finished product
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Standardise the
R esults
Not every operation in a work process need to be standardised. Identify the critical elements that must be measured and standardized : cycle time, tact time, work seq uence, pre-start checklist and conditions, standard time. Standards - binding on everyone. Management¶s job is to ensure everyone works in accordance with the established standards. This is called ³Discipline´ 44
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MUDA Every worker is in gemba for at least eight hours Everyone is always busy and working People moving around in a hurry or with a purpose How
much of this time and energy is actually adding value?
MUDA means waste T here
is a much deeper connotation
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W HY is M UD A important? Work
is a series of processes or steps Starting with raw material and ending with a final product or service At each process, value is added to the product or service (In the service sector ± a document or other piece of information) Then it is sent to the next process The resources at each process ± people and machines ± either add value or it does not MUDA is any activity that does not add value 46
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MUDA in gemba is classified into the following seven categories :
MUDA of overprod uc tion MUDA of inventory MUDA of repair s / reject s MUDA of motion MUDA of proce ss ing MUDA of w aiting MUDA of tran sp ort 47
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I .
PRODU CT I ON MUD A of OV ER
1. Usually start with the thinking of line supervisors 2.
Worried
about problems such as machine failure, rejects, absentism
3. Feels urgent need to produce more than necessary just to be on the safe side 4. Tries to get ahead of the planned production schedule 5.
With
expensive machines, prioritise maximum and efficient use rather than the quantity required to fulfill sales requirements
6. Excess workers who may be idle, maximize workers¶ efficiency
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I .
MUD A of OV E RPRODU CT I ON
Muda
What
are the potential ´MUDAµ due to the Overproduction ?
MUDA leads t o COST & L OSSES
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I .
MUD A of OV E RPRODU CT I ON
Muda Extra consumption of raw materials before actual sales requirement Usage of manpower and utilities (electricity, overheads) Diversion of machinery, even adding machinery to increase capacity Increase in interest burden (cost of purchase) Additional space to store excess inventory Added transportation and administrative costs Gives people a false sense of security Helps cover up actual problems Confuses data and information that can provide clues for kaizen Cost of production increase without increase of value Potential of ³no sales´ turning into dead-stock 50
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II .
M UD A of I NVEN TORY
Inventories of Final products,
semi-finished products (work-in-progress), parts and supplies All inventory does not add value. Inventories just stay there and gather dust. Inventory adds cost to operation
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III .
A MUD A of R EP I RS / R EJE CT S
Rejects
interrupt production (eg need for recovery) require expensive rework may have to be scrapped waste of resources, effort
High
may cause damage to expensive jigs and machines
workers assigned just to monitor and stop the machine when defects are detected.
speed production systems
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I V. MUD A
of MO TI ON
Motion of a person¶s body that is not related to adding value Walking :
does not add value
Lifting
carrying or lifting heavy objects
:
Transferring : pick up, transfer to another hand (eg. Sewing, crimping process) distance of parts and tools Not following the standard process, worse cycle time Actual motion of a worker that adds value to a product is usually a few seconds. 53
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I V.
A of M OTIO N M UD
1. Identify actual value added motion and - reduce the other muda of motion 2.
Observe
a) b) c) d) 3.
the way operators use their Hands Legs Head (including eyes) Body (twist, lean, transfer position)
Re-arrange
placement of parts / jigs / actuators
(switches)
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V . MUD A of PRO CE S S ING Processing refers to
the modifying to a workpiece or
a piece of information
in order to add value to it and
send it to the next process.
Muda can be caused by: 1.
Weaknesses
2.
Weakness
in the design of products
3.
Weakness
in design of process flow
in the technology used (equipment, jigs)
4. Failure to synchronise process (over control of specification at some stations, relaxed in others)
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V I. MUD A of W AI T ING The worker cannot do his value added work due to idling his
hands, body are idle
interruption
that stops him continuing
his work workers
are available for and want to work but is left waiting
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V I. MUD A of W AI TING Muda can happen due to
line in-balance (the previous process cannot pass parts to him)
the lack of fresh parts coming to his process
machine or jigs breakdown
the worker¶s job is only to monitor automatic machines performing the value added job
Workers
waiting while a machine is doing the value added job. T his is most difficult to detect .
wrong parts are delivered
line equipment set up for model changes 57
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II . MUD V II SPOR T A of T R AN SPOR T
Transport is essential part of operations BUT it does not add any value to products no matter how many times or how fast we do it Isola Isolate ted d Island Island proc proces ess s - stre stream amlin line! e! Reducing
transportation reduces excess inventory, waiting, non-value added packing, data and mixing control, equipment and materials etc. Other MUDAs! 58
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GEMBA KAIZEN will reduce the MUDAs through applying the Kaizen Cycle continuously :
MUDA of overproduction of overproduction MUDA of inventory of inventory MUDA of repairs of repairs / rejects MUDA of motion of motion MUDA of processing processing MUDA of waiting of waiting MUDA of transport of transport 59
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GEMBA KAIZEN GEMBA means the real place ³ the place where real action occurs´
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GEMBA MANAGEMENT Relationship Gemba provides product or service that satisfies customers achieves goals set by management the place to achieve real improvements kaizen is effectively implemented Management takes initiative in establishing policies, targets and priorities accountable for the outcome /success allocating resources such as manpower and money exercise leadership decides the most urgently kaizen strategy listen and learn from employees in gemba provide most appropriate help to actual problems 61
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The Golden Rules of
Gemba Management 1.
When
a problem arises (abnormality) go to gemba first
2. Check the gembutsu (relevant objects) 3. Take temporary countermeasures on the spot 4. Find the root cause 5. Standardize to prevent recurrence 62
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1 . G o to G emba Fir st
The Gemba Circle ± training method Nothing else matters. When you have a concern with
Gemba, You must go there first. All other action is futile (MUDA)
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G emb ut su 2 . Ch eck t he
Gembutsu means something physical, tangible Broken down machine, rejected product, tool damaged, returned goods, a complaining customer Gembutsu in Gemba ± find the actual root cause ³listen to gembutsu´ ³Let the gembutsu speak to me´ Using the 5 senses plus commonsense ³Be proud of the scars on your hands ³ ± Soichiro Honda 64
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n termea su re 3 . T ake T emporary C ou on t he Spot
You
Every second lost to production is lost forever. This is a terrible MUDA.
³Do it now. Do it right away!´
Remember
can always take temporary countermeasures to keep the process moving.
who and where the money earners
are!!
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Root C au s e 4 . Find t he
o
Use simple analytical tools and common sense solutions e.g. 5 WHYs
o
Deeper statistical tools will be needed more complicated problem
o
Gemba can provide the necessary information ³Do not jump to conclusions too fast´ ³Do not make a simple problem into a complicated crisis´
o
Solutions to be gotten from gemba (relevant application)
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4 . 5 WHY s o
o
o
o
o
Why are you the floor?
throwing sawdust on
Because the floor is slippery and unsafe Why is it slippery and unsafe? Because there is oil on it Why is there oil on it? Because the pump parts are leaking Why is it leaking? Because the oil is leaking from the pump couplings Why is it dripping? Because the rubber seals are not fiitted properly. 67
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5 . Standardize to prevent Rec ur rence
Once
All similar problem area in gemba should now follow the new standard way of working.
Critical points and processes should be documented as standards to avoid misunderstanding.
Standardisation is one way for all in gemba to benefit from the Kaizen improvements.
a problem has been solves, standardise the new procedure
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