4/23/2017 Kaizen Concepts 2268REALa_Kaizen_Master_Checklist.xls

The Breakthrough Strategy Process Check 4/23/2017 The Breakthrough Strategy Process Check 1. Select Output Characteristic 2. Define Performance Standards 3. Validate Measurement System 4. Establish Baseline Process Capability 5. Define Performance Objectives 6. Identify Variation Sources Screen Potential Causes Discover Variable Relationships Establish Operating Tolerances – Implement Improvements 10. Validate Measurement System 11. Determine Final Process Capability 12. Implement Process Controls Kaizen principles lay the foundation for identifying variation sources They may prove useful in establishing the baseline process capability Kaizen could be adopted as a strategy, and used throughout the 12 steps. On the statistics side of Sigma Lean, the same could be said about Design of Experiments. In both cases, we are focusing on them as tactics useful within the 12 step strategy.

4/23/2017 Learning Objectives By the end of this module, the participant should be able to: Define Kaizen and its basic principles Understand why Kaizen is an effective approach Plan and prepare for a Kaizen event Conduct a Kaizen event Complete Kaizen follow up activities 1 2 3 4 5 6 7 8 9 10 11 12 D M A C I

4/23/2017 What is Kaizen? A Japanese word meaning incremental continuous improvement which involves cross-functional teams working together. To better understand Kaizen, consider these three steps: Education – You can read about Kaizen Training – You can also be taught Kaizen Experience – But you really learn by doing Kaizen Use this slide to define Kaizen. Stress the fact that Kaizen is a key component to the 12 step breakthrough strategy. In some places it is the continuous improvement philosophy or approach to running the business. It is NOT simply a workshop event. The Kaizen process is a self-learning process. Developing the ability to effectively practice Kaizen to bring about real change and improvement as needed – requires experience gained through repetition of the application of key principles and tools “Kai” means “Change” “Zen” means “Good”

Kaizen Principles…# 1-5 Get rid of old assumptions 4/23/2017 Kaizen Principles…# 1-5 Get rid of old assumptions Look for ways to make things happen Say “No” to status quo Don’t worry about being perfect – Start now It does not cost money to do Kaizen Use these two slides to present these ten principles of Kaizen. Then, discuss whether or not the organization has done Kaizen previously. If yes, discuss what worked well and what issues were encountered. If not, share from your own personal experience with previous Kaizen events. A Kaizen event is a great opportunity to test some of those ideas you’ve been to busy to try

Kaizen Principles…# 6-10 If something is wrong, fix it on the spot 4/23/2017 Kaizen Principles…# 6-10 If something is wrong, fix it on the spot Good ideas come when the going gets toughest Ask “Why” five times to get to the root cause Look for wisdom from ten people rather than one Never stop doing Kaizen Ask the class about their perception of the current business condition. Is there a sense of urgency for improvement? Use step 9 to bring up the importance of the social side of change, which we’ll be pursuing in the Breakthrough Change Strategy modules. Whether real or imagined, we need to have a sense of urgency about continuous improvement

Why Kaizen Works We break down long established paradigms 4/23/2017 Why Kaizen Works We break down long established paradigms We focus on improving quality, delivery and cost We introduce employees to the benefits of the Lean Enterprise culture We create a positive attitude towards change and success We deliver useful, measurable results And we accomplish it in a short time period This slide will reveal progressively. Review the points on this slide to reinforce why Kaizen is an effect approach to improvement. Discuss the potential impact of Kaizen on the organization with the participants.

General Expectations – Kaizen Workshop 4/23/2017 General Expectations – Kaizen Workshop An event on the floor or in the office Observe with your own eyes Identify and eliminate waste Take action to improve a process or product Focus on results – Not talk! 20% learning – 80% doing Share these expectations with the participants. The event is to be conducted for a specific product/process or product family.

Kaizen Process Map things “as they are” using Value Stream Mapping 4/23/2017 Kaizen Process Map things “as they are” using Value Stream Mapping Measure current performance Eliminate what does not add value Flow Value-Added activities Brainstorm and implement improvements Train employees in new process Test changes Measure again Put in controls to sustain gains Present and celebrate the accomplishments! Suggest that the teams follow this basic process. Note how it relates to the 12 step process.

Four Phases Of A Kaizen Event 4/23/2017 Four Phases Of A Kaizen Event 2-6 Weeks Evaluation Planning / Prep 1 Week Event Read over the four phases Point out the commitment of time and resources our company is making in this process Workshop leaders, with help from people in the organization, typically spend 4 - 6 weeks with the first 2 stages. The actual workshop covers approximately 1 week Follow up is ongoing and the responsibility of area management not the Sigma Lean organization. Ongoing Follow-up

Kaizen Events And Workplace Organization 4/23/2017 Kaizen Events And Workplace Organization Kaizen Event – Standard Work For An Event Event Elements Document Reality Plan Countermeasures Check Make Change Verify Change Quantify Results Make This The In a Week! Celebrate Do It Again! Identify Waste N S E W L A ? KAIZEN Abnormal Normal v.s. VA NECESSARY REDUCE NVA T O D R I V M U / C X Target Matrix UNNECESSARY Start Here New Standard

4/23/2017 Kaizen Project Selection Criteria Getting Started – Desirable Characteristics Clear and measurable outputs Have management support Satisfies a business need Highly visible process or location Availability of resources A simple, easy to understand process A stable repeatable process A self contained process An easy project – confidence builder A process highlighting the workers contributions Emphasize; focus, scope, and impact.

Kaizen Project Selection Criteria – Undesirable Out of control processes Unreliable equipment A machine or process that is not capable An unnecessary improvement Any project that immediate improvement can’t be completed due to technical or budgetary reasons A process highly dependent on outside influences Focuses on spending capital to make improvements

Pre-Kaizen Event Activities 4/23/2017 Pre-Kaizen Event Activities Before the workshop Choose target area for event Develop charter Scope and boundaries Definition of deliverables Select cross-functional team members Assist with logistics/resource issues Eliminate roadblocks to success Engage the workers in dialogue about Sigma Lean Help them identify, “What’s in it for us?” The Management Team is responsible to assist with charter development and to make certain the goals and objectives are well understood. The Team Leader and Process Owner work with the Black Belt/facilitator to determine the scope of the activity, clarify the boundaries, and define the workshop deliverables.

Selecting Kaizen Participants 4/23/2017 Selecting Kaizen Participants Select people who do the work in the targeted area with Process knowledge Specific skills in area or related areas *Note – Should be people who will own the process after the event Leaders Influential skeptics Supervisors, managers, and technical experts Stakeholders impacted by the Kaizen results Selecting team participants is critical -- they must include representatives from the focus area, supplier and customer areas who have experience, knowledge, and credibility. In a multi-shift process, representatives from all shifts should be on the team. Remember to include resource reps from support groups, such as Tooling, IE, ME, IS, Liaison Engineering, Facilities. They are vital when information and action are needed to get things done (such as IS people to link workstations or forklift operators to move equipment). Facilities and computing support, for example, might be on-call participants. Stakeholders may include Union representatives Safety representatives Regulatory representatives Representatives from the customer and supplier processes.

Management And Employee Education 4/23/2017 Management And Employee Education Educating management to understand Kaizen process is vital Educating employees in the Kaizen process will assist in getting the workshop off to a running start Management and employee education are important parts of the entire Kaizen experience. This education will expose managers and employees to Lean principles and address their concerns and questions about the Kaizen Management education may last from 1 hour to all day, depending on the existing level of knowledge. Tailor the education to fulfill the need. Team member training is typically as needed during the event There’s no such thing as over communicating If we don’t tell them what’s going on, they will come to their own conclusions

Phase 1: Evaluation Opportunity Products and flow Processes Equipment 4/23/2017 Phase 1: Evaluation Opportunity Products and flow Processes Equipment Workplace organization Readiness Need for rapid improvement Enthusiasm/Spirit Culture Decision to continue Purpose:Provide Management with an evaluation of the organization’s readiness and the potential for improvement from a Kaizen. Starts with: Meeting between the workshop Leader(s) and the management team to discuss expectations, identify key people, establish a schedule for completion of the assessment, etc. Performed The Workshop Leaders by: Looks at: Talk to the information on the chart Ends with: Report out to Management to review findings and recommendations, and a decision about going on.

Phase 2: Planning And Preparation 4/23/2017 Phase 2: Planning And Preparation Boundaries Are any areas or processes off limits? Objectives Remember: Small steps are better Management education and expectations Data collection Critical for monitoring success Detailed plan for success Purpose: Develop a plan for a Kaizen event that is tailored to the area. Who: Workshop Leader with help as required from the organization’s management team and other key individuals. What: Define boundaries, specific area, processes, and products upon which to focus in the workshop. Define the Workshop objectives and the approach to be used in the workshop to achieve those objectives.

4/23/2017 Master Checklist The Master Checklist is a reliable method to schedule logistics and tasks for the Kaizen event It is separated into time-oriented tasks Going through the checklist will help ensure success See example: 2268REALa_Kaizen_Master_Checklist.xls Suggest they print it out and hang it up in their work area.

Creating The Kaizen Agenda 4/23/2017 Creating The Kaizen Agenda Every Kaizen may have a unique agenda Typical formats include 3-7 day events (duration depends on the complexity of the Kaizen) Focusing the agenda will increase the success level of the Kaizen (be sure to allow plenty of time for improvement activities) Core team members should sign off on the agenda 3 day events are good for very focused Kaizens. Example: would be a setup reduction event on one piece of machinery. Seven day events are similar to 6 day agenda with both Thursday and Friday being used for training or additional data collection. Examples: 1) An event where multiple improvement techniques are being used or the team being trained is new to Lean. 2) Some events between supplier and customer where both the material and information flows are being address my require more time. Provide time for the whole Kaizen Team to come together each morning and afternoon. This time will be spent looking at what’s been accomplished and what’s planned next. Each sub-team is responsible for reporting their progress and plans. At the end of each workshop day, have each sub-team plan what it will do tomorrow.

Typical Kaizen 5 Day Event 4/23/2017 Typical Kaizen 5 Day Event Monday Vision, expectations and charter review Lean education and situation analysis (education can also be mixed in throughout the Kaizen where appropriate) Identify implementation teams and give assignments Daily report out (Event Leader, Facilitator and appropriate management only) Tuesday through Thursday Morning and after lunch updates (15 minutes) Use improvement methods, implement improvements (simulate if necessary) Daily report outs (same attendees as Monday) Friday Implement Check results, final report out, and celebration

Phase 3: Conducting The Event 4/23/2017 Phase 3: Conducting The Event Make sure the expectations are clear Maintain the “spirit” of Kaizen Assign teams according to process and technical knowledge Keep management and other interested parties informed of progress during daily report outs Solve issues and remove road blocks as quickly as possible Most important, take advantage of the momentum and improve the process during the event (quick and crude is better than slow and elegant) The actual workshop is 1 week of learning by doing. 20% education, 80% doing Mon: Education in basic principles: Focus is on identifying waste, simulations, spirit of improvement, and a process walk. Tues: Apply improvement methods learned. Workshop members develop a vision for their areas and identify, plan, and prioritize the projects that will enable their vision to be achieved. W/Th: Workshop members receive additional education on improvement methods as necessary, but the focus is on developing and implementing their project action plans Fri: Workshop members prepare for report out to management on what they’ve accomplished during the week and status on any remaining action items. Take no action and nothing will happen.

Typical Kaizen Tools Value Stream Map Spaghetti Chart Process Maps Pareto Charts Fishbone Diagrams Standard Work Sheets FMEA (Failure Modes and Effects Analysis) Takt Time Load Charts Waste identification tools VA / NVA analysis (could be Value Stream Map) Brainstorming 5S – Workplace organization

Daily Report Outs Tell what happened during the day (overall) 4/23/2017 Daily Report Outs Tell what happened during the day (overall) Inform management of the day’s progress (specific) What was accomplished Where the team needs help (support from other areas, discussion with uncooperative team member, etc.) Actions/Homework for tonight Plan for tomorrow Identify additional training (if needed) These are opportunities for the team to elicit help from leadership with regards to barrier busting. Its leadership’s opportunity to redirect the team if they’ve strayed or changed the project scope.

Final Report Out Tell the story of the workshop 4/23/2017 Final Report Out Tell the story of the workshop Inform the audience of the week’s events What the team(s) set out to accomplish What was accomplished Follow-up actions required to make the improvements hold Key learning points

Phase 4 – Kaizen Follow Up 4/23/2017 Phase 4 – Kaizen Follow Up It’s an ongoing process Hold the gains and keep moving forward Establish regular progress reviews Critical to continued success Will facilitate expansion of principles and ideas into other areas Management must be engaged and lead follow-up activity The most important part of an Kaizen is often the most overlooked -- holding the gains and the momentum. This can be done by focusing on working to the new standard operations developed during the Kaizen. Ensure metrics are in place to measure the new process. A follow-up meeting is essential to continued success of the area, and should be held the first open day after the Kaizen. During the meeting: Review all newspaper items Close items that have been completed Add or revise items if required Review what is working and what may not be working.

4/23/2017 Key Learning Points

Objectives Review The participant should now be able to: 4/23/2017 Objectives Review The participant should now be able to: Define Kaizen and its basic principles Understand why Kaizen is an effective approach Plan and prepare for a Kaizen event Conduct a Kaizen event Complete Kaizen follow up activities

4/23/2017 References Standard, C. and D. Davis. Running Today’s Factory: A Proven Strategy for Lean Manufacturing. Cincinnati, OH.: Hanser Gardner Publications, 1999. Laraia, A., P.E. Moody, and R.W. Hall. The Kaizen Blitz: Accelerating Breakthroughs in Productivity and Performance. Canada: John Wiley & Sons, Inc., 1999.

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