1. A STRATEGY FOR PERFORMANCE EXCELLENCE
Kaizen
A STRATEGY FOR
PERFORMANCE
EXCELLENCE

2. Performance Excellence Series Training Module Elements
Executive Overview
Knowledge
Breakthrough
Tools Workbook
Lecture notes
Lecture notes
Participant manual

3. Table of Contents Executive Overview
Session 1.0 Introduction…………………………..3
Session 2.0 Wastes elimination…………………. .9
Session 3.0 Kaizen Methodology………………..15
Session 4.0 Integrated Improvement Strategy…...28
Session 5.0 Kaizen Project Examples……………32

4. Model: Performance Excellence
Deliverable Integration of Lean Robust Processes
Through Elimination of the Nine Wastes of Processes: Over production, Delays, Transportation, Process, Inventories, Motions, Defective Products, Untapped Resources, Mis-used Resources
Required Information
Individual Behavior Motivation
Organization Evolution
Group Dynamics
Market Requirements
Management Characteristic
Visionary
Cooperation & Collaboration
Focus & Perseverance
Value
1st Priority People
Optimize Profits/EVA
Continuous Improvement
Lean - Robust Process
Feedback
Parameters
Core Business Processes
Inputs
Output
Service > 99%
Demand Management
Supply Management
Procurement
Inventory/Material Management
Supplier Management
Forecasting
Order Services
order attainment
order entry
1. Customer
*Wants
*Needs
2. Suppliers
Raw Material
Sub-Assemblies
Products
MRO
3. Customer Returns
Signature Service
Non-Signature Service
Delivery:
Minimal shipment/order
On - time
Costs:
low cost associated
with customer value focus
Quality
Low to zero defects
Service beyond shipment
Feedback
What is needed, in Quantity that is needed at the time it is needed at a competitive cost +
Flexibility, Responsiveness towards customer’s wants and needs
Information Technology
Operational Management
Engineering Management
Quality Management
Human Resources
Order Fulfillment
Operations Management
Finance
Treasury
Accounting
Marketing/Sales
Manufacturing
Production
Approach: Kaizen Six Sigma (6δ)
Lean Site Manufacturing
Total Productive Maintenance
Mistake- Proofing (Poka-Yoke)
Failure Mode Effects Analysis
Statistical Process Control
Kanban
Visual Management 5S
Pull Systems
Cellular Manufacturing
Priority Planning
Statistical Problem Solving
Fishbone Diagram
Design of Experiments
Spaghetti Chart
Takt Time
Advanced Product Quality Planning
Fishbone
Pareto
Histogram
Mistake Proofing
Process Capability Analysis
Production Part Approval Process
Multi-Generation Product Planning
Quintus
Affinity Diagram
5W’s, 2H’s
Regression Analysis
Process Mapping
Quick Changeover (S.M.E.D)
Product Creation Process
Standard Work
Quality Cost & Delivery
Pareto Analysis
MSA

5. Why Kaizen
CPI
Data Driven Methodology to Magnify Impact of Process Improvement
Apply Control Techniques to Eliminate Erosion of Improvements
Proceduralize/Standardize Improvements for Improved Maintenance of Critical Process Parameters
Process Improvement Project Implemented
Savings
Maintenance of Process Performance
Time
CPI Project
CPI Projects Emphasize Control and Long Term Maintenance
Savings
Continual Performance Improvement uses a 6 step approach to achieve process performance improvement.
Step 1 Measure Step 4 Verify
Step 2 Evaluate Step 5 Standardize
Step 3 Improve Step 6 Repeat steps 1-5
It is a conceptual strategy of approach utilizing process mapping any number of statistical methods tools to assess efficiency of performance.
Kaizen is a performance improvement methodology focused on identification and elimination of the 7 forms of process waste.
Kaizen
Use Small Teams to Optimize Process Performance by Implementing Incremental Change
Apply Intellectual Capital of Team Members Intimate with Process
Time
Kaizen
Savings
CPI
Kaizen Projects Emphasize Incremental Improvements
Time

6. Expanding the Strategy
Performance Excellence Obtained by Continuous Improvement
Improvement Tools
CPI
Disciplined Methodology
Technical Approach
(Quantitative)
Data Driven - Statistical
Operational Focus
Reduce Variation
Focus on Large Impact
Larger/Longer Projects
Kaizen
Philosophical Approach
Common Sense Approach
(Qualitative)
Data Driven - Observation
Customer Focus (Takt time)
Waste Elimination
Incremental Change
Smaller/Shorter Projects
Contrasting the improvement approaches of CPI and Kaizen.
Complimentary Tools Driving Continuous Improvement

7. Comparative Analysis 6s
Improvement Methodologies
Similar in Structure
Improvements measured against established process
Team oriented
Similar improvement tools
Measure effectiveness of improvements
Maintain new performance level
Standardize & Proceduralize
Results
More Efficient Processes
Comparison
Both are Effective Improvement Mechanisms
CPI/6s best applied to large complex problems
Kaizen/Lean best applied to achieve incremental changes and eliminate wastes.
Kaizen/Lean
Measure
- Data Collection
- Determine Process Potential / Goals
Evaluate
- Root Cause / Vital Few
- Statistical Analysis
Improve & Verify
- Implement Improvement
- Validate Improvement
Standardize
- Standardize / Leverage
- SPC
- Update Procedures
Evaluate
- Baseline Process Performance
- Establish Target
Decide
-Compare solutions
- Choose
Act
-Communicate
- Implement improvement
- Control
Measure
- Validate improvement
- Standardize
- Update Procedures
Different methods used to determine improvement opportunities
Focus
- Reduce Process Variation
- Identify Critical Cause and Focus Resources for Maximum Impact
Focus
- Eliminate Waste 5 s
- Seek Incremental Process Changes
Another comparative analysis showing the major steps in each of a Six Sigma and a Kaizen Program and that the primary focus of 5S is process related i.e. not only to the processes of cleaning,organizing etc. associated wtih5S, but also the work processes of documentation,selling,purchasing,manufacturing,distribution and integration of these with5S processes.
Summary
- Technical Approach based on Statistical Analysis
- Requires Significant Data Collection
- Best applied to Manufacturing Processes
- Typical Projects 1-3 Months
Summary
- Common Sense Approach based on Observation
- Applicable to all types of processes
- Defined improvement strategy
- Typical Projects 1 week

8. Tool Kit Comparison
Major CPI
Tools (6s) Kaizen Lean Description
Cp/Cpk Process capability assessment
DOE Design of experiments
SPC Process control based on statistics and data analysis
FMEA Risk assessment tool
Regression Correlate effect one variable has on another
Process Map Map process steps to communicate and identify opportunities
5 whys /2 hows Determination methods for root cause discovery
Pareto Column chart ranking items highest to lowest
Fishbone Cause / Effect Diagram
5S Elimination waste
Visual Mgmt Emphasis on visual techniques to manage process
Poka-Yoke Error proofing techniques
Spaghetti Chart
Kanban Material storage technique used to control process
Takt Time Determine pace or beat of a process
Std Work Evaluate tasks done during a process
SMED Single minute exchange of dies - Quick machine set up
TPM Integrate maintenance strategy with process
Cellular Flow Reduce inventory & cycle time thru process layout and pull production techniques
Expand Process Improvement Program to Utilize Kaizen Tool Kit

9. Performance Excellence: Expanding the Strategy through Kaizen
Introduction
Wastes elimination
Kaizen Methodology
Integrated Improvement Strategy
Kaizen Project Examples

10. Continuous Improvement Is the continuous elimination of waste

11. + What Does Kaizen Mean? KAI ZEN = KAIZEN
To modify, to change Think, make good, make better
= KAIZEN
Make it easier by studying it, and making the improvement through elimination of waste.

12. What is Waste? Our objective > Value added = Maximum
Everything we make that
costs something without
adding value to the product
Our objective > Value added = Maximum
Non-Value Added = Minimum

13. The Nine types of waste Overproduction Delays (waiting time)
Transportation
Process
Inventories
Motions
Defective products
Untapped resources
Misused resources
9 Wastes
These are the seven characteristic types of waste affecting process performance.
Everything we do or make that does not add value to the product is waste.
The goal is to minimize wastes, maximize value add.

14. Elimination of Wastes and Continuous Improvement
The Approach
The Means
The Strategy
Elimination of wastes
KAIZEN
Continuous Improvement
One piece flow
SMED
Visual Controls
Workplace Organization
Kanban
Standard Work
Process Control
Total Productive Maintenance
Poka-Yoke
Lead-time
Costs
Quality the first time
The focus on elimination of wastes (muda) is the core concept of Kaizen. Several means are employed to achieve the strategy of reducing lead-times, costs, and producing quality the first time, every time.

15. Performance Excellence: Expanding the Strategy through Kaizen
Introduction
Wastes elimination
Kaizen Methodology
Integrated Improvement Strategy
Kaizen Project Examples

16. Kaizen Methodology Kaizen improvement The mandate One-piece flow SMED
Visual controls
Kanban
Workplace organization
Standard work
Quality every time
Total productive maintenance
These are the methods employed to realize waste reduction that we will review. Each plays a specific role with respect to reducing the various forms of waste in production as we shall see.

17. Kaizen Improvement is a Team
Multi-disciplinary
Specific mandate
Short delays
Responsible teams
Implementing Kaizen methodology successfully relies upon the establishment of responsible, multi-disciplinary teams with specific mandates, and which are empowered to implement improvement with little delay.

18. Kaizen Improvement is composed of 4 steps
To Evaluate
To Decide
To Act
To Measure E D A M
For any improvement effort to be successful, it must be approached systematically. The traditional reactive “poke and hope” method is of no value.

19. Kaizen Improvement is continuous improvement
As processes are dynamic and ever changing, they require continuous application of continuous improvement methods to seek out and eliminate wastes

20. Kaizen Improvement is NOW !!!

21. To Evaluate You can only improve things you know well.
This underscores the importance of the multi-disciplinary team. Perceiving and evaluating the various forms of waste requires knowledge of the process.

22. To Evaluate Tools for analysis E D A M
The 5 whys : search for root cause
Matrix
Pareto diagram
Fishbone diagram
Distribution histogram
Check sheet
etc. E D A M
Use the tools of evaluation appropriate to the nature and scope of improvement objective.

23. To Decide
The value of a decision is no greater than the quality of the analysis.
Compare all solutions;
cost, feasibility, efficiency, etc.
Choose
Establish measurable objectives E D A M
Arrive at an improvement decision by comparison of alternative solutions. Then select the optimum solution and establish measurable objectives.

24. Control their execution
To Act
Communicate
operators,
other employees from the area
other people servicing the area
Implement decisions
Control their execution E D A M
Implement the decision through communication, changes in standard work instruction, tooling, process flow, ergonomic design and any other aspects of the process required.

25. To Measure Compare the results in relation to the objectives.
Resume EDAM E D A M
And lastly, measure the results to determine if the improvement objectives were achieved.

26. Become familiar with the Mandate
Draft the plan of attack
Current situation
Desired situation
Complete the observations
Matrix
Setups video
Etc...
It is important to define the scope and objectives clearly before embarking on an improvement effort. This will keep activity focused. Then, examine and understand the current “as is” process.

27. Implement one-piece flow Analyze
Identify the products
Identify the customers
Understand and describe the Processes
part/process matrix
Flow diagram
analysis of the Process Flow
Spaghetti diagrams
TAKT time
Determine the customer requirements and evaluate the process using tools to assess its effectiveness in meeting those requirements.

28. Performance Excellence: Expanding the Strategy through Kaizen
Introduction
Wastes elimination
Kaizen Methodology
Integrated Improvement Strategy
Kaizen Project Examples

29. Complimentary Continuous Improvement Approaches
6 Sigma
Lean Site
Kaizen

30. Performance Excellence Manufacturing
Determine the customer requirements and evaluate the process using tools to assess its effectiveness in meeting those requirements.

31. 1997 Plant of the Year Industry Week
The business results achieved through elimination of process wastes and implementation of one-piece flow are characteristic of world class performance.

32. Performance Excellence: Expanding the Strategy through Kaizen
Introduction
Wastes elimination
Kaizen Methodology
Integrated Improvement Strategy
Kaizen Project Examples

33. Kaizen Project: Corporate Quality ISO Hardcopy Procedures Elimination
Kaizen/CPI
A STRATEGY FOR PERFORMANCE
EXCELLENCE
Kaizen Project: Corporate Quality
ISO Hardcopy Procedures Elimination
an Office Process Improvement Example

34. Kaizen Project: ISO Hardcopy Procedures Elimination
an Office Process Example
Background:
ISO Policy and Procedures are currently on the company web site. Hardcopy sets of policy and procedures are also mailed to 95 remote facilities and distributed to 40 locations within Corporate Headquarters.
Kaizen Project:
Eliminate hardcopy distribution of policy and procedure manuals for all corporate headquarters locations and all other facilities having company web site access.

35. Current Process: 1. Outside vendor prints 135 sets of
ISO Policy & Procedures manuals: $3,000
sets of manuals mailed (Fed Ex) to facilities
beyond Corporate Headquarters. $18 /set x 95 sets = 1,710
$4,710
updated and distributed twice per year x
$9,420

36. Kaizen Project: ISO Hardcopy Procedures Elimination
Action Plan:
1. Survey all corporate facilities to determine those having Web site
access. (1/7/00)
2. Remove from hardcopy distribution list those facilities having web
site access. (1/10/00)
3. bulletin all facilities having web site access of
discontinuance of hardcopy manuals distribution, and to use web
site instead. (prior to planned March, 2000 distribution)

37. Improved Process: 1. Outside vendor prints 40 sets of
ISO Policy & Procedures manuals: $889
(for facilities not able to access web site procedures
and eight extra sets)
sets of manuals mailed (Fed Ex) to facilities
beyond Corporate Headquarters. $18 /set x 32 sets =
$1,465
updated twice per year x 2 = $2,930
(current cost) $9, (improved cost) $2,930
Kaizen project annual cost savings: = $6,490

38. Kaizen Project: ISO Hardcopy Procedures Elimination
Ongoing Continuous Improvement
Action Plan:
1. Establish timetable for implementation of website access for
facilities not presently able to view electronic procedures. (TBD)
2. Remove from hardcopy distribution list these facilities once web
site access is established. (TBD)
3. bulletin latest facilities having web site access of
discontinuance of hardcopy manuals distribution, and to use web
site instead. (TBD)

39. Color Key - Optimize Press Capability
Kaizen/CPI
A STRATEGY FOR PERFORMANCE
EXCELLENCE
Kaizen Project:
Color Key - Optimize Press Capability
a Shopfloor Process Improvement example

40. Color Key - Optimize Press Capability Dec. 6 - 10, 1999
Team members:
Herkie Hill (Team Leader)
Derick Fultz (Sub- team leader)
Lee Salsberry
Carolyn Oliver
Phylis Dancy
Marvin Bell
Lueontine Smith
John Whittington
Dave Hensley (Consultant)
Hosea Foster
Objectives:
Reduce WIP by 70%
Improve throughput by 40%
Reduce backlog by 50%
Reduce leadtime by 5 days
Identify (5) 5S improvements
Train operators on all shifts
Work hard and have fun

41. Kaizen Project: Color Key Press Optimization
a Manufacturing Process Example
Background
Color Key area currently has 14 days of WIP in front of the 4
press operations. The presses are operated on 3 shifts, 5 days per week. The lead
time for these products is approximately 4 weeks.
Kaizen Project
Optimize press capability and reduce lead time by 5 days.

42. Current Process of S. Tai Press:
1. Current production average = 118 pcs/hr for a cost of .09 cents per piece
2. Total cost anualized per customer demand = $129,168
Gross Vs Realization Capacity Analysis
S. Tai Dec 99 66 15 60
Tool Change
210
Clean Up 90
Breaks
Lunch
Run Time
990
Unaccounted Time

43. 1. Improve set up reduction techniques
Kaizen Project: Color Key Press Optimization
Action plan:
1. Improve set up reduction techniques
2. Introduce short cycle scheduling with 2 day window
3. Locate production management board by press
4. Organize WIP by tube size

44. SET UP TIMES Machine: S. Tai Start Date: 12/8 Target: 25 % Improvement
11:38
adjustment
27% Improvement
Minutes
8:30 8
8:23
adjustment
remove
& install
tooling
established external check list
5:04 4
remove
& install
tooling
& created tooling cart for preset up 1 2
Observation Number

45. Improved Process of S. Tai Press:
1. Improved production average = 179 pcs/hr for a cost of .06 cents per piece
2. Total anualized per customer demand = $86,112
WIP reduced .5 day
Kaizen Project annual cost savings : = $43,056
S. TAI Realization Capacity Analysis
Jan 00 24 15 60
132
Tool Change 90
Clean Up
Breaks
Lunch
Run Time
Unaccounted Time
1119

46. Kaizen Project: Color Key Press Optimization
Ongoing Continuous Improvement
Action Plan :
1. Create daily review panel of pacer board to help resolve daily problems
in a timely manner. Include maintenance, planning, supervisors and KPO. (1/24)
2. Install 2nd counter on press to help maintain daily output numbers. (12/31)
3. Locate rack near press to organize parts by tube size. (1/14)
4. Add yellow and red lights to press for visual notice of downtime. (12/14)
5. Design & implement 3 move die exchange. (1/31)

47. Kaizen
A Key Strategy In Pursuit Of World Class Performance