Japanese Lean Management System- KAIZEN & Five S’s - World Business Associates Co. Ltd., Japan Director & Senior Consultant Jun SUGIURA
Lecturer self-introduction Jun SUGIURA Occupations: - Director & Senior Consultant, World Business Associates Co., Ltd., Japan - Management Consultant Registered by Minister of Economy, Technology, & Industry , Japan - Management Advisor, Small and Medium Enterprise Support, Japan - Expert Consultant, registered by Tokyo Federation of Societies of Commerce and Industry, Japan - Member of Japan Small and Medium Enterprise Management Consultants Association Background: Graduated from BE and ME of the University of Tokyo in 1975 and In 1978, respectively From 1978 to 2003, Hitachi, Ltd.. (semiconductor business Div.) Occupied Director of Technology Development, Director of Designing Division, and General Manager of Technology, successively From 2003 to 2009, Renesas technology Corp. Occupied General Manager of Business Development Div. and Executive of Planning Div., and Board Director of two design subsidiaries
World Business Associates Co., Ltd., Japan World Business Associates Co., Ltd.(WBA) was established in April 2006, as a professional group for SME promotion, which is consisted of over 100 members including 70 affiliated consultants and 35 network members (as of January 2013), we possess a great deal of experience and expertise for the purpose of SME promotion/ support, human resource development, researches/studies and etc. both in domestic and overseas. Our business characteristics are not only providing with partial Kaizen (improvement) and level-up, but also to practice consultant and assistance services which are based on SANGENSHUGI (The Three Actuals -Actual Place, Actual Thing, and Actual Situation) through the general management, making use of advantages of SME Management Consultants. A special feature of our company’s business activity is that the project partnership and commissioned business are advanced with various international organizations including Japan International Cooperation Agency (JICA) and Japan Cooperation Center for the Middle East (JCCME). We also pursue extensive partnership with many SME promotion organizations such as The Organization for Small & Medium Enterprises and Regional Innovation, JAPAN (SME Support, JAPAN), Japan Small and Medium Enterprise Management Consultant Association (J-SMECA), and The Tokyo Chamber of Commerce and Industry (TCCI).
Table of Contents What is KAIZEN? -Continuous Improvement - 1.1. History 1.2. Background Concepts 1.3. Contents of KAIZEN 1.4. Why is it difficult to sustain? 2. KAIZEN PDCA - Continuous Spiral of Improvement – 2.1. PDCA Problem Solving 2.2. Process Improvement and People Development 3. How to Implement KAIZEN 3.1. What Is the Purpose? 3.2. Project Organization 3.3. Target Setting - Short Term and Long Term – 3.4. Kick off Meeting 4. The Way of Sustaining KAIZEN Appendix: Examples of KAIZEN in Japanese pharmaceutical companies
1. What is KAIZEN? - Continuous Improvement -
1. What is KAIZEN? -Continuous Improvement - 改 善 KAI ZEN Change For the better Meaning of words: Continuous Improvement True meaning:
1. What is KAIZEN? -Continuous Improvement - Millions of companies / organizations have introduced KAIZEN. But how many companies still maintain continuous improvement? Service (3%) Other manufacturing Industry (9%) Steel industry (7%) Electric Apparatus (15%) 1,209 companies Transportation equipment (43%) Companies registered to Union of Japanese Scientists and Engineers (August 2013)
1. What is KAIZEN? -Continuous Improvement - Number of public companies in Japan is about 2million. Then registered 1,209 companies are only 0.06%. A few 5S (Five S’s) / KAIZEN is easy to start because it is simple and requires less investment. Today’s main issue: Why is it difficult to maintain? How can it be continued?
1.1. History: Industry W. Edwards Deming (U.S.) (Statistician) Quality Control 1950 TQC KAIZEN/5S TQM KAIZEN/5S KAIZEN/5S (QC Circle) Japanese Auto Industry Electrical Industry TQM TQC KAIZEN Not same 1980’s TQC 1960’s TQC 6 sigma TQM U.S. Electrical Industry TQM
1.2. Background Concepts: Purpose of KAIZEN Continuation of company Profits Customer Satisfaction Investor Satisfaction Investment Products Materials Machines People Education Motivation KAIZEN
1.2. Background Concepts: KAIZEN is far more than a waste-reduction methodology. KAIZEN is a system of philosophy, processes, people, and problem solving that is striving for excellence. (by Jeffrey K. Liker) Mechanistic Organization （Machine Thinking) Organic Organization (System Thinking)
1.2. Background Concepts: Work Groups know problems/issues in work site. Work Groups know feasibility of countermeasures of them. Japanese TQM Western TQM Work Groups Executives Middle Managers Middle Managers Top Down Bottom Up Executives Work Groups
1.2. Background Concepts: Whose responsibility is job improvement? Vision of department Target of department Method Show direction 3 Roles of Middle Manager Give incentive Persuade members Praise Recognize Respect Communication Follow up Coaching
1.2. Background Concepts: What are executive’s roles? Company philosophy Goal of improvement Show Philosophy 3 Roles of Executive Strong commitment Show examples by top executive Manpower Resource Investment Execute improvement Attend meetings
1.2. Background Concepts: What does bottom up mean? (work group roles) • Recognize gap between present status and goal, xxxxxxxxx. • Find problems/issues which disturb filling gap, xxxxxxxxx. • Analyze root cause of the problems/issues, xxxxxxxxx. • Propose feasible countermeasures of the root cause, xxxxxxxxx. • Make executing plan of the countermeasures, xxxxxxxxx. • Do executing plan, xxxxxxxxx. • Check the result of countermeasures, xxxxxxxxx. This process is PDCA cycle. (KAIZEN)
1.2. Background Concepts: Question 1. Who should decide the target(Goal)? Question 2. What word is appropriate for xxxxxxxxx. independently or voluntary?
1.2. Background Concepts: • KAIZEN is continuous improvement spiral. ( Endless PDCA improvement cycle) Each PDCA cycle may not one cycle.
1.2. Background Concepts: KAIZEN/5S is one of the tools to improve quality. Maximum Profit Customer Satisfaction Total Quality Management Guarantee of quality Quality Control KAIZEN 5S
1.3. Contents of KAIZEN: KAIZEN is to find Muda, to reduce Muda, and eliminate Muda. Muda is Non-value-added job or motion. Gap between present status and ideal status. 無 駄 Mu da No trivial value
1.3. Contents of KAIZEN: How to find Muda in work site? • Find gap to the target in the following aspects. Check three Ms Muda Mura Muri
1.3. Contents of KAIZEN: How to find Muda in work site? • Three Ms
1.3. Contents of KAIZEN: How to find Muda in work site? • Relation among Muda, Muri, and Mura. Resource Mura Muda Muri Requested level
1.3. Contents of KAIZEN: How to find Muda in work site? • When you found Muda, you should find Muri together, and vice versa.(Relations of the top side and down side) Example: Too much eating (Muda) Stomach is overload (Muri) No more space for stocking documents (Muri) Stocking unnecessary documents (Muda)
1.3. Contents of KAIZEN: How to find countermeasure of Muda? • Use ECRS method Eliminate Combine Rearrange Simplify
1.3. Contents of KAIZEN: Seven Muda 1. Muda of Overproduction 2. Muda of Inventory 3. Muda of Waiting 4. Muda in Transporting 5. Muda of Defect making 6. Muda of Motion 7. Muda in Processing
1.3. Contents of KAIZEN: Seven Muda • Muda of Overproduction “Every products, stock in progress, materials/parts stock in works are cost. “ Don’t you think all of them are necessary now? Please change mind to “ Every object in work area is Muda”. Then you will become aware of how to reduce them.
1.3. Contents of KAIZEN: Seven Muda • Muda of Overproduction Side effects 1. Deterioration of turn-over ratio of funds 2. Lose flexibility against market change 3. Lose flexibility in production planning 4. Hide Muda of waiting 5. Need more space to stock
1.3. Contents of KAIZEN: Seven Muda • How to reduce items Assembler recognizes overproduction Put parts for just 1day consumption Stock processed parts beside the assembler Start 1day, then reduce 4Hrs, 2Hrs, …..
1.3. Contents of KAIZEN: Seven Muda • Muda of Inventory Side effects 1.Need more working capital 2. Hide other Muda (Indicator of other Muda) 3. Need more space to stock
1.3. Contents of KAIZEN: Seven Muda • Inventory for safety (Safety Stock) Theoretical Safety Stock (SS) should be predicted by calculation ( depend on order system ), but it is rather difficult to deploy for workers. Order Point Level Safety for Psychological Relief (Muda) Inventory Safety for Market Demand Change Safety for Material Distribution Safety for Machine Trouble Day
1.3. Contents of KAIZEN: Seven Muda • How to reduce material/parts inventory Example 1. Put a tag, which shows the date of use, name of parts, parts number, and Quantity on a carry case containing 1 day use parts. Date of use: Oct. 12 (Sat.) Part name: Front cover for product A #cov1234-A Quantity: 64
1.3. Contents of KAIZEN: Seven Muda • How to reduce material/parts inventory Example 2. Two (or three) bins system For Stock For Use Order new one when one of two is empty. Move New one
1.3. Contents of KAIZEN: Seven Muda • How to reduce material/parts inventory Example 3. Min/Max line system Max Stock Line Order Form Order Line The person who used the last one over the order line brings an order form to a procurement section.
1.3. Contents of KAIZEN: Seven Muda • Muda of Waiting Side effects 1. Waste of manpower and machines 2. Increase in-process inventory 3. Fall down worker’s morals
1.3. Contents of KAIZEN: Seven Muda • How to eliminate waiting Need to recognize waiting process outside ・Line balancing Re-arrange operations of each site to equalize operating times (Resource re-arrangement) Pitch Diagram Time/item Working site
1.3. Contents of KAIZEN: Seven Muda • How to re-arrange line balancing Example: Versatile workers Teach previous and/or following work to the waiting process worker and let him operate those work additionally. Previous step Waiting step Following step Operation A Clean up Operation B Put screws in holes Fasten screws Operation A Clean up Operation B Put screws in holes Fasten screws
1.3. Contents of KAIZEN: Seven Muda • Muda of Transporting Think every transportation is in vain and better avoided.
1.3. Contents of KAIZEN: Seven Muda • How to reduce transporting Example 1. Shorten the distance between processes
1.3. Contents of KAIZEN: Seven Muda • How to reduce transporting Example 2. Use parts stockers with wheels Forklift truck (Handlifter) needs pick-up time and return time.
1.3. Contents of KAIZEN: Seven Muda • How to reduce transporting Example 3. Put in-process products directly on a carrier with wheels. (Don’t put them on a floor )
1.3. Contents of KAIZEN: Seven Muda • Muda of Defect making (Accident) Side effects 1. Need additional money to change products 2. Damage Customer’s reliability
1.3. Contents of KAIZEN: Seven Muda • How to reduce defect making Example 1. Standard Operation/Inspection Manuals 1) Grades of manuals JIDOKA: Device which has Auto/manual stop with in-situ inspection
1.3. Contents of KAIZEN: Seven Muda • How to reduce defect making 1. Standard Operation/Inspection Manuals How to make manuals a) Make Standard Operation Sheet (SOS) b) Analyze operations and make corrective measures with SOS c) Determine SOM
1.3. Contents of KAIZEN: Seven Muda Standard Operation Sheet (SOS) Machine 2 Machine 1 Machine 3 7 9 1 5 4 2 6 8 3 Machine 4 Machine 5
1.3. Contents of KAIZEN: Seven Muda • How to reduce defect making 2. Feedback countermeasure to the manual ＳＯＭ Report Counter-measure for Defect A
1.3. Contents of KAIZEN: Seven Muda • Muda of Motion Side Effects 1) Waste labor time/ cycle time 2) Instability of operation 3) Operator’s fatigue causes defect
1.3. Contents of KAIZEN: Seven Muda • How to improve motion 1. Use the principles of Motion economy （Gilbreth, Frank Bunker：1868.7-1924.6） 1) Principle of Body Parts 2) Principle of Working Place Layout 3) Principle of Design for machine and tools
1.3. Contents of KAIZEN: Seven Muda • How to improve motion 1) Principle of Body Parts a) Both hands should begin and complete their movements at the same time b) Both hands should not be idle at the same time except during periods of break time c) Motions of the arms should be symmetrical and in opposite directions and should be made simultaneously
1.3. Contents of KAIZEN: Seven Muda • How to improve motion 1) Principle of Body Parts d) Minimize movements of hands and a body e) Use inertia as much as possible f) Perform the movement smoothly g) Work with natural and comfortable rhythm whenever possible