continuous improvement & kaizen

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Continuous Improvement & Kaizen

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  • 21/04/2010

    1

    11

    A strategy for A strategy for

    performanceperformanceexcellenceexcellence

    Original source: unknown Original source: unknown

    Modified by N. Hanna & M. Burns

    22 33

    What does Kaizen mean?What does Kaizen mean?

    KAI KAI + + ZENZEN

    changechange good or bettergood or better

    ==> ==> improvementimprovement

    Usually translated as Usually translated as continuous improvementcontinuous improvement which has 2 meanings:which has 2 meanings:

    1.1. Continuously trying to improve what you do Continuously trying to improve what you do forever (i.e. forever (i.e. Continuous ImprovementContinuous Improvement))

    2.2. Using cycles of reflection (PDCA cycles) to Using cycles of reflection (PDCA cycles) to produce frequent produce frequent incrementalincrementalimprovements in work processes improvements in work processes (i.e. (i.e. KaizenKaizen))

    44

    Is the continuous

    elimination of waste

    Continuous ImprovementContinuous Improvement

    55

    Continuous ImprovementContinuous Improvement

    definitions (web)definitions (web) The constant effort to eliminate waste, reduce The constant effort to eliminate waste, reduce response time, simplify the design of both response time, simplify the design of both products and processes, and improve quality products and processes, and improve quality and customer service.and customer service.

    Continuous incremental improvement of aspects Continuous incremental improvement of aspects connected with a manufacturing process.connected with a manufacturing process.

    A quality philosophy that assumes further A quality philosophy that assumes further improvements are always possible and that improvements are always possible and that processes should be continuously reprocesses should be continuously re--evaluated evaluated and improvements implemented.and improvements implemented.

    The ongoing evaluation and change of The ongoing evaluation and change of processes, products, programs and services to processes, products, programs and services to make them work better.make them work better.

    66

    A management approach that involves A management approach that involves continuously searching for ways to improve continuously searching for ways to improve processes and the goods and services they processes and the goods and services they produce. produce.

    Incremental improvements that take place over Incremental improvements that take place over time as the results of corrective actions are fed time as the results of corrective actions are fed back into the Quality System. back into the Quality System.

    Continuous improvement anticipates the Continuous improvement anticipates the incremental changes that take place over time to incremental changes that take place over time to minimize the recurrence of repetitive quality minimize the recurrence of repetitive quality problems.problems.

    Continuous ImprovementContinuous Improvement

    definitions (web): (cont)definitions (web): (cont)

  • 21/04/2010

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    77

    ContinuousContinuous Improvement (CI)Improvement (CI)

    Is a business philosophy that aims at creating a

    steady growth and improvement.

    It produces quantum leaps when cumulative

    improvements synergize

    The sum of all the small improvements can

    cause a profound net effect greater than the

    sum of all the small improvements.

    Is a set of activities that an organization routinely

    carries out in order to enhance its ability to meet

    requirements.

    Small improvements in work processes, through

    ongoing efforts by everyone - adding up to a

    large improvement.88

    Continuous ImprovementContinuous Improvement ((CI)CI)

    Adopting new activities and eliminating Adopting new activities and eliminating

    those which are found to add little or no those which are found to add little or no

    value.value.

    The goal is to increase effectiveness by The goal is to increase effectiveness by

    reducing inefficiencies, frustrations, and reducing inefficiencies, frustrations, and

    waste (rework, time, effort, material, etc).waste (rework, time, effort, material, etc).

    99

    Two elements of KaizenTwo elements of Kaizen

    Improvement/change Improvement/change

    Ongoing/continuityOngoing/continuity

    1010

    Continuous Process Improvement Continuous Process Improvement

    is the systematic and continuous is the systematic and continuous

    elimination of waste ofelimination of waste of::

    capital capital

    materialsmaterials

    people's timepeople's time

    1111

    The Seven types of wasteThe Seven types of waste

    1.1. OverproductionOverproduction

    2.2. Delays (waiting time)Delays (waiting time)

    3.3. TransportationTransportation

    4.4. OverOver--processingprocessing

    5.5. InventoriesInventories

    6.6. MotionsMotions

    7.7. Defective productsDefective products

    7 Wastes

    1212

    1. List at least one example of each of the 7 categories of waste from a process within your organization.

    2. Identify at least one possible cause for each of the specific wastes listed.

    3. Propose one or more actions to reduce each of these wastes.

    4. Identify methods of measurement to determine results of waste reduction efforts.

    Think Break

    Exercise 1: Wastes Identification (form on next screen)

  • 21/04/2010

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    1313

    Exercise 1: Wastes IdentificationExercise 1: Wastes IdentificationThink Break

    Defective Defective

    productsproducts

    MotionsMotions

    InventoriesInventories

    OverOver--processingprocessing

    TransportationTransportation

    DelaysDelays

    OverproductionOverproduction

    Method of Method of

    measurementmeasurementProposed Proposed

    actionactionPossible Possible

    causecause

    Identify Identify oneone

    example of each example of each

    waste type below.waste type below.

    1414

    Seven recognized forms of wasteSeven recognized forms of waste

    Preparing designs that

    are never used Excessive work in processOverOverOverOver----productionproductionproductionproduction

    Too many signoffs Performing unneeded

    operationsOverOverOverOver----processingprocessingprocessingprocessing

    Extraneous analysis Retrieving parts, tools, or

    information

    Unnecessary Unnecessary Unnecessary Unnecessary

    MotionMotionMotionMotion

    Backlog of design or

    tooling changes Excessive work in processInventoryInventoryInventoryInventory

    Data handoffs Parts moving to the

    warehouse and backTransportingTransportingTransportingTransporting

    For concurrence from all

    disciplines

    For parts, tools or

    informationWaitingWaitingWaitingWaiting

    Drawing or planning

    errors Scrap or reworkDefectsDefectsDefectsDefects

    Office ExampleOffice ExampleOffice ExampleOffice ExampleFactory ExampleFactory ExampleFactory ExampleFactory ExampleSeven Forms of Seven Forms of Seven Forms of Seven Forms of

    WasteWasteWasteWaste

    1515

    The The secretsecret: : be systematicbe systematic Work with a versatile teamWork with a versatile team

    Measure, evaluateMeasure, evaluate

    Find the 5 Whys (Who, what, why, when Find the 5 Whys (Who, what, why, when

    and how)and how)

    Follow upFollow up

    Standardize, make uniformStandardize, make uniform

    SimplifySimplify

    CombineCombine

    PreventPrevent

    Make waste uglyMake waste ugly

    Elimination of Wastes and Continuous Elimination of Wastes and Continuous

    ImprovementImprovement

    1616

    Key points when looking at your Key points when looking at your

    continuous improvement plan:continuous improvement plan: Continuous means ongoingContinuous means ongoing. .

    The process never stops. The process never stops.

    Once a year, have an outsider review your business.Once a year, have an outsider review your business. Outsiders can often see what you cannot. Outsiders can often see what you cannot.

    Do the simple and cheap things first and quickly.Do the simple and cheap things first and quickly. This builds credibility, momentum and commitment with your This builds credibility, momentum and commitment with your people. It also gives you practice. people. It also gives you practice.

    Have a formal suggestions system for your employees.Have a formal suggestions system for your employees. See article on Suggestions Spreadsheet.See article on Suggestions Spreadsheet.

    Do not try to do it all at once.Do not try to do it all at once. Set up a plan and do it in stages. See article on Action Plan Set up a plan and do it in stages. See article on Action Plan Spreadsheet. Spreadsheet.

    Try to work on two or three top priorities.Try to work on two or three top priorities. Working on more than that can diffuse effort, energy and resourcWorking on more than that can diffuse effort, energy and resources. es.

    1717

    Key points when looking at your Key points when looking at your

    continuous improvement plancontinuous improvement plan Celebrate, acknowledge and reward accomplishment.Celebrate, acknowledge and reward accomplishment.This creates a positive environment for improvement which encourages employee participation.

    Bring up continuous improvementBring up continuous improvement issues in your issues in your production and business meetings. production and business meetings.

    Make certain your improvements involve your Make certain your improvements involve your customers.customers. Focus on delivering increasing value.

    Look for breakthrough improvements.Look for breakthrough improvements. One of the added benefits of continuous improvement is everything is on the table. Some small improvements can turn out to be major improvements.

    1818

    Key points when looking at your Key points when looking at your

    continuous improvement plancontinuous improvement plan Develop a continuous improvement system that works for Develop a continuous improvement system that works for your business.your business. Do not copy without trying it out Do not copy without trying it out what what works for one business may not work for another. works for one business may not work for another.

    Look Look insideinside your industryyour industry, at your competition and best , at your competition and best practices. Competitors can often show you a better way. If practices. Competitors can often show you a better way. If it works, use it! it works, use it!

    Use a costUse a cost--benefit analysisbenefit analysis if you have difficulty setting if you have difficulty setting priorities. priorities.

    Look Look outsideoutside your industryyour industry to see what other industries are to see what other industries are doing. doing.

    Be hungry for new ideas and ways to improveBe hungry for new ideas and ways to improve. Make this a . Make this a part of your business culture. Set the example and your part of your business culture. Set the example and your people will follow.people will follow.

  • 21/04/2010

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    1919

    How to Carry out a How to Carry out a

    Continuous Improvement Continuous Improvement

    ProjectProject

    2020

    12 Generic Steps12 Generic Steps

    1.1. Set up the Project Team.Set up the Project Team.

    2.2. Define the scope.Define the scope.

    3.3. Set the goals.Set the goals.

    4.4. Understand the process.Understand the process.

    5.5. Plan the project.Plan the project.

    6.6. Determine Information Needs.Determine Information Needs.

    2121

    12 Generic Steps (cont)12 Generic Steps (cont)

    7.7. Choose the tools for the jobChoose the tools for the job

    8.8. Identify the root causesIdentify the root causes

    9.9. Develop solutionsDevelop solutions

    10.10. Implement the solutionsImplement the solutions

    11.11. Review the resultsReview the results

    12.12. Standardize the changeStandardize the change

    2222

    Set up the Project Team.Set up the Project Team.

    A team is more effective than an individual for problem A team is more effective than an individual for problem solving.solving.

    Ensure that someone on the team is knowledgeable in Ensure that someone on the team is knowledgeable in every aspect of the process being studiedevery aspect of the process being studied..

    The team members must be knowledgeable in:The team members must be knowledgeable in:

    team building skills andteam building skills and

    understand the tools and strategies that can be used for understand the tools and strategies that can be used for problem solving.problem solving.

    A low level process team should have people from the A low level process team should have people from the working levelworking level..

    A high level process team should include managers A high level process team should include managers because they have a broader perspective.because they have a broader perspective.

    2323

    Define the scopeDefine the scope

    The scope of the project must include:The scope of the project must include:

    The statement of the problemThe statement of the problem

    A definition of the boundariesA definition of the boundaries

    The magnitude of improvement goalsThe magnitude of improvement goals

    A target date for completion andA target date for completion and

    The resources availableThe resources available

    2424

    Set the goalsSet the goals

    Starting pointStarting point: : find out what the customer find out what the customer

    and the end user want.and the end user want.

    The The goalgoal: : to find out their expectations and to find out their expectations and

    meet them. meet them.

    The The goals should be quantifiedgoals should be quantified and used and used

    as a benchmarkas a benchmark to measure the success.to measure the success.

    Team must be very clearTeam must be very clear about the about the

    expectations for the Project. expectations for the Project.

  • 21/04/2010

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    2525

    Understand the ProcessUnderstand the Process

    Understand how the current process Understand how the current process

    works and what it is supposed to do.works and what it is supposed to do.

    There are two approaches to There are two approaches to

    understanding the present processunderstanding the present process

    Process DescriptionProcess Description: The team should ask : The team should ask

    and answer key questionsand answer key questions

    Visual/Graphical representationVisual/Graphical representation

    2626

    Process DescriptionProcess Description

    The team should ask and answer key questions:

    What does the process do?What does the process do?

    What are the stages of the process?What are the stages of the process?

    What are the starting and finishing points of the What are the starting and finishing points of the process?process?

    What are the inputs and outputs from the What are the inputs and outputs from the process?process?

    Who are the suppliers and the customers of the Who are the suppliers and the customers of the process?process?

    Who uses the product and who pays for it?Who uses the product and who pays for it?

    Are there obvious problems with the process?Are there obvious problems with the process?

    2727

    GraphicalGraphical

    Flow ChartsFlow Charts.. A flow chart of the process (visual A flow chart of the process (visual

    picture) is particularly helpful in obtaining an picture) is particularly helpful in obtaining an

    understanding of how the process works. understanding of how the process works.

    A A Top Down flow chartTop Down flow chart shows only the essential shows only the essential

    steps in a process without detail.steps in a process without detail.

    Deployment Matrix ChartDeployment Matrix Chart. This is useful because it . This is useful because it

    shows who is responsible for each activity, how they shows who is responsible for each activity, how they

    fit into the flow of work and how they relate to others fit into the flow of work and how they relate to others

    in accomplishing the overall job.in accomplishing the overall job.

    2828

    Plan the ProjectPlan the Project

    1.1. Identify root causesIdentify root causes

    2.2. Develop (costDevelop (cost--effective) solutionseffective) solutions

    3.3. Implement the changesImplement the changes

    4.4. Review the resultsReview the results

    2929

    Determine information needsDetermine information needs

    Need to know:Need to know:

    1.1. what information is available what information is available

    2.2. what information is what information is notnot available and,available and,

    3.3. how to collect the how to collect the currentlycurrently unavailable unavailable

    information.information.

    3030

    Choose the tools for the JobChoose the tools for the Job

    brainstormingbrainstorming

    flowchartsflowcharts

    cause and effect/Ishikawa diagramcause and effect/Ishikawa diagram

    checksheets/tallysheetschecksheets/tallysheets

    runchartsruncharts

    Pareto chartPareto chart

    histogramshistograms

  • 21/04/2010

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    3131

    Identify the Root CausesIdentify the Root Causes

    To get at the root cause you need to ask To get at the root cause you need to ask

    the question:the question:

    What is the cause of the cause?What is the cause of the cause?

    Ask why again and keep asking Ask why again and keep asking 'why?''why?'

    uuntilntil the team cannot think of another the team cannot think of another

    cause level.cause level.

    3232

    Develop SolutionsDevelop Solutions

    1.1. DefineDefine the characteristics of an ideal solution and,the characteristics of an ideal solution and,

    2.2. IdentifyIdentify the criteriathe criteria that that mustmust be satisfied and the criteria be satisfied and the criteria that are that are desirabledesirable but not absolutely necessary.but not absolutely necessary.

    3.3. Identify proposed solution constraints.Identify proposed solution constraints.

    4.4. EvaluateEvaluate each possible solution against the criteriaeach possible solution against the criteria for for selection.selection.

    5.5. SSeekeek to develop a solution which comes closest to:to develop a solution which comes closest to:

    solving the root causessolving the root causes

    is the easiest to implementis the easiest to implement

    satisfies the criteria for selection, andsatisfies the criteria for selection, and

    does not impact on the constraints.does not impact on the constraints.

    3333

    Implement the solutionsImplement the solutions

    1.1. DefineDefine required changesrequired changes..

    2.2. ListList the implementation activitiesthe implementation activities

    3.3. DetermineDetermine the the sequencesequence of of

    implementation stepsimplementation steps required.required.

    4.4. ProperlyProperly informinform allall those people those people who who

    are affected by the changesare affected by the changes and and ensureensure

    they understand they understand howhow the changes will the changes will

    take place.take place.

    3434

    Review the resultsReview the results

    1.1. Did the team achieve the expected Did the team achieve the expected

    benefits?benefits?

    2.2. Were there any unexpected benefits or Were there any unexpected benefits or

    problems?problems?

    3.3. What can the team learn from these?What can the team learn from these?

    4.4. What can be done to fineWhat can be done to fine--tune the tune the

    solution so that it can be applied on a solution so that it can be applied on a

    wider basis?wider basis?

    3535

    Standardize the changeStandardize the change

    The process should be The process should be refinedrefined and and

    appliedapplied to other similar processes.to other similar processes.

    3636

    CPI (Continuous Performance Improvement)

    summarysummary

    CPI

    Project

    Time

    S

    a

    v

    i

    n

    g

    s

    Data driven methodology to magnify the

    impact of Process Improvement

    Applies control techniques to eliminate

    the erosion of improvements

    Proceduralizes/standardizes

    improvements for improved

    maintenance of critical process

    parameters

    CPI projects emphasize

    improvement jumps and

    the control and long term

    maintenance of those

    improvements

    Process Improvement

    Project Implemented

    Maintenance of

    Process

    Performance

    Time

    S

    a

    v

    i

    n

    g

    s

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    Kaizen summaryKaizen summary Uses small teams to optimize process performance by implementing incremental change.

    Applies intellectual capital of team members who are intimate with the process.

    CPI

    Time

    S

    a

    v

    i

    n

    g

    s

    Kaizen

    Kaizen projects emphasize incremental improvements

    gained from identifying and eliminating the 7 forms of

    process waste.