Leadership Development

- KAIZEN and LEANKAIZEN Institute Chairman Chile, June 2012

Copyright 1985-2012 KAIZEN Institute, Ltd. All rights reserved. KAIZEN and GEMBAKAIZEN are registered trademarks of KAIZEN Institute, Ltd.

KAIZEN

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KAIZEN (Original Definition)

KAI ZEN

Change

Good
(for the better)

KAIZEN = Continual Improvement

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KAIZEN (new Definition)

- Everyday improvement

- Everybody improvement
- Everywhere improvement

- From small incremental improvement to dramatic strategic improvement

KAIZEN

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Kaizen Spirit (1)

1. Discard conventional fixed idea for production. 2. Think of how to do it, and not why it cannot be done. 3. Do not make excuses. Start by questioning current practices. 4. Do not seek perfection. Do it right away even if for only 50% of target. 5. Correct mistakes at once.
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Kaizen Spirit (2)

6. Do not spend money for KAIZEN.

7. Wisdom is brought out when faced with hardship.

8. Ask Why? five times and seek root causes.

9. Seek the wisdom of ten people rather than the knowledge of one. 10. KAIZEN ideas are infinite.
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What is Management? (1)

Topmanagement

Improvement

Middle management

Maintenance
Employees

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What is Management? (2)

Topmanagement

Innovation KAIZEN

Middle management

Supervisors

Maintenance
Employees

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Organisation for KAIZEN

Gemba
Customer Expectations Organization to support Customer Satisfaction

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The 5 Gemba Principles

1. When an abnormality occurs, go to Gemba first 2. Check with Gembutsu (machine, material, failures, rejects, unsafe conditions etc.) 3. Take temporary countermeasures on the spot

4. Remove root cause

5. Standardize to prevent trouble

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House of Gemba Management

Profit management

Cost Logistic & safety management management management Workers operations Information Equipment Products & materials

Q C D Quality

Standardization 5S (Good housekeeping) Muda Elimination

Team-work self-discipline Morale enhancement QC circles
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Suggestions
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Gemba Deteriorates

Everything in Gemba deteriorates if left alone. That is the reason why Gemba needs to be sustained and improved.

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MILTON PLASTICS` CASE (1)

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MILTON PLASTICS` CASE (2)

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MILTON PLASTICS` CASE (3)

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MILTON PLASTICS` CASE (4)

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MILTON PLASTICS` CASE (5)

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Standardization (1)

Simple, clear & conspicuous Best, easiest, safest way - - - - - - - - > should only have one at a time

Preservation of know - how Guide-lines that enable performance measurement of tasks delegated Assure Quality, Cost, Delivery and Safety
Show relationship between cause and effect
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Standardization (2)
It makes management possible (maintenance and improvement) Basis for training Basis for audit or diagnosis Recurrence prevention and control of variability

Remember: The standard used today is the worst way

of doing the job.
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Disneyland

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Disneyland

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Disneyland (1)

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Disneyland (2) Behavioral standards Make Eye contact and Smile Greet and welcome Each and Every Guests Seek out Guest Contact Provide Immediate Service Recovery Display appropriate Body Language Preserve the Magical Guest Experience Thank Each and Every Guest
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Product - out

Traditional Approach Engineering intuitively knows what customer needs Design with tolerances that approximate manufacturing capabilities

Produce to schedules convenient to manufacturing

Quality costs which are equal to past performance

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Market in Understanding consumer needs

Translating understanding into activities to

achieve consumer needs in QCD: Quality Cost Delivery Detecting trends ahead of competition DANTOTSU : .... by far superior .... by far the best
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Three Levels of Services

Latent customer expectation

Conventional wisdom

What you have to have

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The FLOW

Basic difference between Traditional and Lean System

FLOW (Realization of minimum cost)

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Conditions for making the FLOW

5S Standardization Visual Management MUDA Elimination Reorganizing Management Structure Building KAIZEN Culture
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Synchronization (1)

Takt Time - The pulse of the market

Level out product variety and volume to daily production

One-piece-flow

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Synchronization (2)

Start from the last process based on orders Cross-functional Coordination (Design- Production- Logistics- Sales)

Flexibility to meet diversified orders

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Christopher Columbus` School of Management

When he set out, he didnt know where he was going

When he got there, he didnt know where he was When he returned, he didnt know where he had been

He did it all with borrowed capital

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Man & Ape

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Who manages the FLOW?

Let the flow manage the processes, and not let management manage the flow.

(Taiichi Ohno)

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Mr. Oh, no!

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What is your current status?

FSL Checklist
Is tact time employed as a basis of production? Is standardized work employed? Are all processes physically and logistically connected ? Is one-piece flow practiced? What is the current level of Five S?

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Tools & problems Tools come first and problems second? or

Problems come first and tools second?

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Approach to problems

Problems are the mountain of treasures. The problem is that the problems are the problems.

Copyright 1985-2012 KAIZEN Institute, Ltd. All rights reserved. KAIZEN and GEMBAKAIZEN are registered trademarks of KAIZEN Institute, Ltd.
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Leadership Development - KAIZEN SPIRIT-

THANK YOU!
KAIZEN Institute Chairman June 2012

Copyright 1985-2012 KAIZEN Institute, Ltd. All rights reserved. KAIZEN and GEMBAKAIZEN are registered trademarks of KAIZEN Institute, Ltd.
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