CITY GOVERNMENT OF ADDIS ABABA Technical & Vocational Education and Training (TVET ) Agency

Kaizen Training November, 2012

Points to be discussed .
1. 2. 3. 4. 5. 6. What is Kaizen ? The important of Kaizen . The characteristic of Kaizen . Problems alleviating methods of Kaizen . Principles of Kaizen . Human resource as the main contribution to an organizations overall success . 7. The four M for doing any job . 8. The five fields of training . 9. The three balloons for employees contribution to success .
Prepared by Maimer Shawel, TVET Agency .

10. What are the necessary elements to implement Kaizen ? 11.What are the Points that need more attention ? 12.What do you mean by Muda , Muri, and Mura ? 13.The seven type of wastes . 14 .What are the important techniques to implement Kaizen ? 15 .The seven conditions to implement Kaizen successfully .

Prepared by Maimer Shawel, TVET Agency .

1. What is Kaizen ?

Zen, means good . These two Character combine to Kaizen and mean change for better or improvement . The word Kaizen refers to small and continuous improvement . Continuous improvement in personal life, social life, and working life . Senior management commitment is essential to implement Kaizen . All employees should understand Kaizen role in their work . 4

Kai, means to change things . i.e.to modify or alter something .

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Continued
It requires a complete change in attitude and culture and needs the energy and commitment of all employees . It also requires a substantial investment of time . Good is never good enough , Kaizen is a never ending journey to excellence . Kaizen is a method to achieve continuous improvement of product quality and productivity by eliminating or reducing waste and utilization of scarce resources economically . It has key contribution by eliminating waste improves quality , cost and delivery time . Kaizen would always involves a change in method of doing .

Prepared by Maimer Shawel, TVET Agency .

2. The important of Kaizen .

Implementing of Kaizen

Eliminating of waste

Participation of all management and workers Improve quality and productivity

Giving training to employees

Minimize cost Shorten delivery time Company will be profitable

It guarantees the continuity of the company, the employees life , and customers satisfactions .
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Continued
It improves companys profit Increase competence
Create job opportunity Enhance tax payable Improve national income

Kaizen is regarded as one of the pillars of the national growth strategy

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3. Characteristic of Kaizen .
1. Continuous Improvement .

2. Participatory .
3. Improvement that dose not required major

Investments .
4. Can be implemented in any economic sectors (industries , services donors enterprises , institutes, and etc ) . 5. Accumulation of small improvements .

3 . 5 . 1 The Difference between Kaizen and Innovation .

N Methods of o Comparing 1 Result 2 Participation Kaizen Small All associated persons take part . Group oriented . Entails modifying and improving on existing technologies . Innovation Dramatic Only minority of staff members take part . Oriented around individuals . Entails the introduction of new technologies .
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3 Orientation 4 Technology

4 . Problem alleviating method of Kaizen .

Plan

Do

Act

Check

Plan Do Check Act

11

Understand

Identify the problem .

Prepare a standard & do Correct

Plan

Research the existing condition

Check the result obtained

Check

Set goal

Find the solutions and implement

Implem ent

List out the causes

Prepare plan
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Shawel, TVET Agency .

Correct

Plan
Do

Check

5. Principles of Kaizen .
1. Focus on customers . 2.Make improvements continuously . 3.Acknowledge problems openly . 4.Create work teams . 5.Cross functional teams . 6.Right relationship process . 7.Develop self-discipline . 8.Inform every employee . 9.Enable every employee .

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7 . The four Mfor doing any job .

Machine
Manpower

Method

Material

Result focused job.

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6 . Human resource as the main contributor to an organizations overall success .

20% Organization structure
20% Technology

60% Human resource development

Contribution to the companys overall success .

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8 . Five fields of training . ClinenCle

anlinessss

Cleanlin ess
Hygiene/ Health

Safety/Se curity

Quality hhhhh

Technology
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9 . The three balloons for employees contribution to success.

knowledge
Desire & Attitude Skill

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10 . What are the necessary elements to implement Kaizen ?

K - knowledge of Kaizen

A - attitude
I - involvement Z - zealous E - education N - never- ending

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11 . Points that need more attention .

1.Quality- It is fitness for use . Product or service which fulfill an aggregate requirement of

customers needs .
Quality control method, defect of product or service, and customer complain are the main character of quality which determine the product or service . 2.Cost To grasp the correct manufacturing cost to setting the standard cost and reducing cost . If productivity is improved then cost will come down . Utilization of raw materials , time management , delivery of the

product or service. have positive and negative impacts on cost .

Continued
2.1 Basic concept of cost . How can you increase profit ? Elimination or reducing of cost is one and one way of making profit sustainable . 2.2 Product or service price can be determined by market not by cost . 2.2.1 Traditional or cost method of setting price:Price= Cost + Profit 2.2.2 Market or Kaizen method of setting price :Profit = Price Cost 3 . Productivity :- Productivity refers to the relationship between inputs and outputs .
Prepared by Maimer Shawel, TVET Agency .

Continued
It would fall if additional investment was put in to machinery (input)in response to an increase in production volume (output) . 4 . Delivery time :- Shorter delivery time brings greater satisfaction of customer . Generally speaking , in sectors where production conducts to order, delivery time is an important . However ,in cause of make to stock production , delivery is not important . Realizing a shorter delivery time is often incompatible with productivity . 5 . Safety:- In work place small mistake can lead to major accidents or injuries . Incases of arc welding , electric shock cause fatalities .

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Continued
Improvement of work methods and safety equipment are essential in order to secure safety . Physical strain is another problem of safety . 6 . Morale :- Kaizen strongly emphasize the importance of high morale in the work place . The entire method focuses on keeping the employees happy and satisfied with their jobs . Improved morale essential because it improves productivity and efficiency for long time . When employees morale is low, productivity suffers . 7 . Environment problems: Environment problems over limited scope such as water pollution , air pollution , noise and vibration , to global problem such as co2 emissions .
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12 . Value added and non value added .

12 .1 . Value added It is used to describe instances where a firm takes a product that may be considered a homogenous product , and provides potential customers with a feature or add-on that gives it greater sense of value . It can either increase the products price or value . In order for work to be consider value-added, it generally takes three factors .
Capacity Information/Instructions Materials

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12 . 2 Non value added .

Activities that do not contribute to the product or the process and should therefore be eliminated . Non value added steps are waste . Non value added work, also called waste ,refers to work that does not added value to or is unnecessary for the overall project . Any thing that detracts from added value is considered waste . There are seven main types of waste, or non-value added work . Non value added falls in to two main categories;Business requirements(operational value add ) Pure waste
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13 . What do you mean by Muda, Muri , and Mura ?

Muda, Muri, and Mura are traditional Japanese terms, but generally , people refer them being the TPS vocabulary of wastes . Muda:- literally means totally useless or waste . Muri means unreasonable, over burdening that means waste due to the reduce output because of over loading.. Mura means unevenness, irregularity and inconsistence in the system . Uneven resources utilization or loading of resources varies from time to time . Three of them are increasing cost and decreasing productivity . Therefore ,they should be eliminated .

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13 . 1 Waste
Identify waste and eliminate waste are the main focus of Kaizen ,
because it will help to reduce cost .

Waste is Idol time .

It is using more energy . It is using more people or machine or space than necessary .

Kaizen methods reduce waste and lower production cost .

A key concept in implementing Kaizen is to understand what value added is and then to eliminate completely (or at least minimize) all

non value added activities .

Mura and Muri are the basis of the existence of waste (Muda) .

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13 . 2 How can we improve waste ?

Waste can be improved only by eliminating and minimizing of non value added & by increasing value added work .
The existence company work process

Value added

Non value added

No change

Traditional improvement process

Value added

k added Non value

Small improve ment

Eliminating of waste

Value added

Non value added

Great improve ment

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13 . 3 How can you analyze Muri , Mura, and Muda ?

Kind Manpower Cause Physical strain (Muri) Effect Lack of manpower .

Inconsistency (Mura)
Waste (Muda)

Inconsistency of work distribution .

Not allocating of the right person at the right place . Shortage of supply .

Raw material

Muri

Inconsistency (Mura)
Waste (Muda) Physical strain (Muri ) Machine

Fluctuation of supply
Over supply . To shorten the life of the machine . Not having a leveled production . Having extra machine
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Inconsistency (Mura)
Waste (Muda )

13 . 4 . The main seven types of wastes .

1. Over production 2. Excess inventory 3. Waiting 4. Transporting 5. Defect making 6. Unnecessary motion 7. Excess processing

COST

13 . 4 . 1 Over production. 13 . 4 . 1 . 1 Cause and outcome .

The cause
Workforce , machineries , and facilities in excess of production needs . Big and fast production machine . Products are produced on and on . Anticipatory production . Machines that turn out parts too quickly .

The outcome
Disturbance of flow . Handling of unnecessary inventory . Spoil of products . Disturbance of flexibility in planning . Advance preparation of materials and parts . Outbreak of defects .

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13 . 4 . 1. 2 How to eliminate over production ?

Full work . Line balance . One piece flow . Pull production . Level production . Quick changeover productions .

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13 . 4 . 2 . Excess inventory . 13 . 4 . 2 . 1 Cause and outcome .

The cause
Bad facility layout . Bottle-neck process . Procurement based on estimated forecast . Anticipation production . Speculative production .

The outcome
Waste of space . Increase transportation and quality control works . Tied of capital . Handling of unnecessary inventory . Defect of inventory .

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13 . 4 . 2 . 2 How to eliminate excess inventory ?

Layout of equipment by process instead of operation . Production leveling . Pull production using Kaizen . Quick changeover productions .

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13 . 4 . 3 . Waiting 13 . 4 . 3 . 1 Cause and outcome .

The cause
Bad facility layout . Bottle-necks process . Obstruction of flow . Trouble at previous process . Capacity imbalance . Big lot production .

The outcome
Waste of manpower, time, and machineries resources . Increase in the in-process inventory .

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13. 4 . 3 . 2 How to eliminate waiting (idle time) ?

Production leveling . Product-specific layout . Quick changeover . Automation maintenance . Line balancing .

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13 . 4 . 4 . Transporting 13 .4 . 4 . 1 . Cause and outcome .

The cause
Not having a good layout . Over production . Single-skilled worker . Sedentary operation . Low morale .

The outcome
Waste of space . Waste of time . Damage of products . Expansion of transportation .

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13 . 4 . 4 . 2 . How to eliminate transporting waste ?

U-shaped manufacturing cells . New layout of equipment by process instead of operation .

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13 . 4 . 5 . Defect making .
13 . 4 . 5 . 1 Cause and outcome . The cause
Utilization of not full quality control system . Poor methods and standards for inspection . Making quality control at last . Producing over quality . Lack of standard operation . Not properly handling and conveying of materials.

The outcome
Decrease productivity . Increase defective products . Increase customer complains . Increase in personnel and processes for inspection .

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13 . 4 . 5 . 2 How to eliminate defects ?

Standard operations . Mistake proofing devices . Full-lot inspection . Building quality in at each process . Flow production . Promotion of value analysis and value engineering .

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13 . 4 . 6 . unnecessary motion . 13 . 4 . 6 .1 . Cause and outcome .

The cause
Not having skill and training . Special method of operation . Not leveled production process . Not having a good layout . Over production .

The outcome
Increase in manpower and processing . Decrease of employees skill . Not continuous operation . Unnecessary movement .

13 . 4 . 6 . 2 . How to eliminate unnecessary motion?

U-shaped manufacturing cells . Flow production . Multi-skilled operations . Standing to perform operations . Higher utilization rate .

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13 . 4 . 7. Excess processing . 13 . 4 . 7. 1 .Cause and outcome .

The cause
.

The outcome
Lower work efficiency . Increase in defects . Increase in manpower and processing . Unnecessary processing and operation . Incomplete standardization .

Lack of analysis of proper order of processing . Insufficient standardization . Inadequate study of processes . Inadequate study of operation . Lack of analysis and study of materials . Lack of analysis of content of operation .

Prepared by Maimer Shawel, TVET Agency .

13 . 4 . 7 . 2 . How to eliminate excess processing ?

U-shaped manufacturing cells . Flow production. Multi-skilled operations . Standing to perform operations . Higher utilization rate .

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14 . Techniques that are required to implement Kaizen .

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. The ( 5s ) Quality control circle ( QCC ) Suggestion system The 7 quality control tools (7 QC Tools) JIDOKA Just-in-time Kanban Pokayoka Standardized working process Leveled production Continuous flow processing
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14 . 1 The (5s)

1 2 3 4 5

Implementation

of Kaizen can be started by

implementing (5s ) .

( 5s ) can be implemented with minimum cost than other Kaizen techniques .

5s are the beginning of Kaizen implementation . 5s can be implemented at less investment cost than other Kaizen techniques . 5s provides the foundation of Kaizen in the areas of quality, productivity, cost, and delivery etc The more you implement 5s, life just gets easier, better, and better . Without performing the first 2s, it is impossible to know the effect of Kaizen in the term of productivity and quality, etc .
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14 . 2 . Quality control circle (QCC) .

Employees from 3 to 10 members who have similar work are grouped is called ( QCC ) . It is a group that members can learn a lot by alleviating their problems in their work place . It is a group that common thinking and self confidence can be developed .

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14 . 3 Suggestions and Kaizen board . 14 . 3 . 1 Suggestions

It is a method that employees in group or individually give their improvement suggestions, and then the company analyze and compare the given suggestions, and offer rewards to those who brought better suggestions . Suggestions cover ideas for improving machines , tools, working methods , clerical procedures , and products . Suggestion system is effective for enhancing the participation and motivation of employees, and at the same time improving work . They result in improved productivity , improved quality , better safety , faster delivery , lower costs , and greater customer satisfaction .
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 Kaizen board is continuous improvement board . It is the main source of information regarding Kaizen and its activities leading to further improvement . The team is able to transfer their ideas and small problems into solution . Only if a problem is too big and too much money needed the team has to transfer the idea/problem . The information on the board is divided into four corners . They are staff performance corner ,the improvement/success corner , the idea/problem corner , and the solution corner
.

14 . 3 . 2 Kaizen board .

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Kaizen board .
Staff performance corner
Problem/Idea corner

Improvement/ Success corner

Solution corner

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14 . 4 The seven quality control tools .

1. Check sheets 2. Pareto diagram

3. Cause and Effect diagram

4. Histogram 5. Scatter Diagram 6. Control Chart 7. Stratification

14 . 4 . 1 . The check sheet .

The check sheet is one of the seven basic tools of quality control . It is a form (document) used to collect data in time at the location where the data are generated . The data it captures can be quantitative or qualitative . When the information is quantitative, the check sheet is sometime called a tally sheet . Check sheets typically employ a heading that answer the five Ws
.

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14 . 4 . 2 Pareto diagram .
The pareto diagram is a graphical overview of the process problems , in ranking order of the most frequent, down to the least frequent, in descending order from the left to the right . It illustrates the frequency of fault types . Using a pareto, you can decide which fault is the most serious or most frequent offender . Therefore, by concentrating on the major problem first, you can eliminate some of the small problems at the same time .

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 It is tool that helps identify, sort, and display possible cause of a specific problem or quality characteristic . It graphically illustrates the relationship between a given outcome and all the factors that influence the outcome . It is some time called fish bone diagram because of the way it looks . It is arranged into four major categories; Manpower , methods, materials, and machinery . Equipment, policies, procedure, and people .
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14 . 4 . 3 Cause-and-Effect Diagram .

14 . 4 . 4 Histograms
A histogram is a graphical display of data using bars of different heights . It is similar to a bar chart, but a histogram groups numbers into ranges, and decide what ranges to use A frequency histogram is a special histogram that uses vertical columns to show frequencies . Possibly the most useful tool available in digital photograph is histogram . The most common form of the histogram is obtained by splitting the range of the data into equal-seized bins (called classes) .
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 A scatter diagram is a graphical technique used to analyze the relationship between two variable . It shows whether or not there is correlation between two variable . Correlation refers to the measure of the relationship between two sets of numbers or variables . If it appears that values for one of the variable can be predicted based on value of the other variable, then there is correlation . Types of correlation are positive, negative, curved, and part linear
.

14 . 4 . 5 Scatter Diagrams .

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14 . 4 . 6 Control chart .
Control chart, also known as Shewhart chart or process-behavior chart . In statistical process control charts are tools used to determine if a manufacturing or business process in a state of statistical control . There are two basic types of control chart; Universal control chart . Multivariate control chart .

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 Stratification segments the population into smaller segments , called strata, to narrow the focus in order to develop more specific results . It is hierarchical arrangement of a society into different layers(strata) on the basis of distinguishing characteristic such as age, gender, life style, race, and status . Customer stratification assures a better match by measuring how much business a customer does with (sales), how profitable they are in gross margins, how loyal they are, and how costly they are to serve (to protect net margins)
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14 . 4 . 7 Stratification

Check sheets

Pareto diagram

Cause and effect diagram

Scatter diagram

Control chart

14 . 5 . Jidoka
Jidoka is a Japanese term means automation . It is simply applied to a machine that moves on its own . Jidoka refers to automation with a human touch, opposed to machine that simply moves under the monitoring and supervision of operator . Since the loom stopped when a problem arose, no defective products were produced .

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14 . 6 . Just-in-time .
Just in time (JIT ) is a production strategy that strive to improve a business return on investment by reducing in-process inventory and associated carry costs . To meet JIT objective , the process relies on signal or Kanban between different points in the process , which tell production when to make the next part . Such kind of method of processing is fast and satisfies customer need It focus on having the right material , at the right time , at the right place, and in the exact amount .

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1.Kanban is a Japanese word for sign or signboard , it is a signaling device that gives authorization and instruction for the production or withdrawal of items in a pull system . 2.It is a technique that assists how much product should be flow in order to satisfy customer need . 3.It also assists to eliminate over production and delay of production . 4.The amount of raw materials flow from one process to other process based on customers need . 5.Kanban is a system for visualizing work , making it flow , reduce waste and bottle necks , encourage continuous flow , improve quality , and maximizing customer value .
Managing the production that all produced will be sold . Production based on customer need .

14 . 7. Kanban

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14 . 8 . Pokayoka
It is a Japanese word which means mistake proofing . It is designing system and products in away to make errors difficult or impossible . Pokayoka is a great example of looking for systemic solution rather than blaming people for errors . Techniques that help operators avoid mistakes in their work caused by choosing the wrong parts , leaving out a part backwards , etc . It involves the implementation of fail-safe ways methods that detect or prevent human and machine error at or near the source .

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 The definition of standard work is the most effective combination of manpower, materials, machinery, and methods . Improving standard work is a never-ending process . It is a production method that eliminate waste and indicate working process . Hazards of a non-standardized(non-existence) process reduced quality, higher cost, wasted time, poor documentation, and degraded service . Basically , standardized work consists of three elements: Takt time . Work sequence . Standard work in process .

14 . 9 Standardized work .

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14 . 9 .1 Tackt time .
Takt time is impacted only by customer demand and the amount of time available for production . Takt is a German word which refers to the pace or drum beat of musical composition . It is the demand rate of production . Takt time provides definition to the relationship between work time available and the customer requirements, and enable us to be aware of time available to complete the job . When demand rises, takt time drops . When available production time increase, takt time increase as well .

Takt time

Available production time Customer requirements

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14 . 9 . 2 Work sequence .
The working is the sequence of operations in a simple process which leads to the production of quality goods in an efficient way . There is a best method and sequence of process steps to produce any product . The work sequence are focused on the production workers, not the parts . It also requires a way of working which reduces burden and minimizes threat of injury or illness . It instructs the operator on exactly what he is to do next, not just which process is to be applied next . Planning your work sequence is an essential part of overall production process . It is very important that you plan your work sequence so that you can easily see what:
Has been completed . Still needs to be done, and materials you will require .
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14 . 9 . 3 Standard work in process .

Standard work in process is the minimum necessary in process inventory to maintain standard work, no more, no less . It is one of the three main components of standard work . The purpose of standard WIP is to enable consistency in a process . It is the designated minimum amount of material needed to keep your standard work flow .

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14.10 . Leveled Production .

Production leveling, is referred to us production smoothing or

heijanka (Japanese term ), is the technique that was discovered by TPS that is used to reduce the amount of waste in the production system . The basic idea of production leveling is to produce goods at a constant rate so that you can allow further processing to be carried out at a constant and predictable rate . It is the rate of production that remain constant irrespective of the fluctuation in demand .

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continued
Its objective is to maximize plant capacity, utilization, and maintenance of the workforce level . Customer fluctuations adopted in lean manufacturing to help prevent the fluctuation in final line zero . How production leveling works in the manufacturing is that you are never doing the same product repeatedly, as you would do with mass production .

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14 . 11 . Continuous Flow Processing .

It is the process that products are produced in continuous flow from the raw materials to final products without interruption . Continuous flow manufacturing (CFM ) is a manufacturing strategy that produce a part via a just in-time and Kanban production approach .

The goal is an optimally balanced production line with little waste, the lowest possible cost, on-time, and defect free production .
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15.Seven condition for successful implementation of Kaizen .

Top management commitment . Top management commitment . Top management commitment . Setting up an organization dedicated to promote Kaizen . Appointing the best available personnel to manage the Kaizen process . Conducting training and education . Establishing a step-by-step process for Kaizen introduction .

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Seven basic principles for improvement .

1 .Throw out all of your fixed ideas about how to do things !!!

2 . Think of how the new method will work-not how it wont !!! 3 . Correct mistakes the moment they are found !!! 5 . Problems give you a chance to use your brain !!! 5 . Ask why ? at least five times until you find the ultimate cause !!! 6 . Dont spend a lot of money on improvements !!! 7 .Ten peoples ideas are better than one persons !!!

Thank you!!!