Kaizen

1. Kaizen 今井正明

2. Kaizen • Ongoing improvement involves everyone • Top management • Managers • Workers • A culture of supporting quality improvement • more important than the use of any specific tools

3. Kaizen • The unifying thread running through • The philosophy • The systems • The problem-solving tools developed of Japanese quality movement

4. Japanese ≠ Kaizen

6. Japanese management Kaizen Process-oriented way of thinking Western management Innovation Result-oriented thinking

7. Climate features innovation • Rapid expending markets • Increasing sales more important than reducing cost • Consumers oriented more toward quantity rather than quality • Abundant and low-cost resources • A belief that success with innovative product will offset sluggish performance

8. Climate favors Kaizen • Sharp increase in the costs of material, energy, and labor • Overcapacity of production facilities • Increasing competitions • 資訊不對稱的消失 • Need to introduce new products more rapidly • Need to lower the breakeven point

9. Kaizen Culture • A corporate culture in which everyone can freely admit these problems • A systematic and collaborative approach to cross-functional problem-solving • Internal, Next process is customer • External, suppliers

10. Kaizen Culture • A customer-driven strategy for improvement • Quality, cost, schedule, and delivery requirements • Emphasis on process • Result is not the only thing and everything • Support and acknowledge people’s process-oriented efforts for improvement

11. Kaizen and management Innovation Kaizen Maintenance Top Mgnt Middle Mgnt Supervisor Worker

12. QC Circles • Primarily focus on • Cost, safety, and productivity • Indirectly to product-quality improvement • Account for only 10% - 30% of the overall TQC efforts in Japanese companies • Making improvements in the workplace

13. TQC in Japan • A movement center on the improvement of managerial performance at all levels

14. Quality assurance Cost reduction Meeting production quotas Meeting delivery schedules Safety New product development Productivity improvement Supplier management TQC

15. Process-Oriented management vs Result-Oriented management • Evaluation the performance of employee • car sales in Taiwan • 2006, 400,000 cars • 2007, 200,000 cars? (optimistic estimates) http://www.kuozui.com.tw 國瑞汽車

16. Risks of result-oriented management • Lacking long term strategy • Missing new ideas and innovation

17. Process-oriented management • Evaluation of quality control circles • Numbers of problems solved • NOT the amount of money saved • How the problems are approached • Do they considered the company’s current situation • Do they consider safety, quality, and cost • Do they improve work standard • Directed at people’s efforts • Managers need to work with employees jointly

18. Manager’s job • Maintenance-related administration • Checking the performance (result) of work • Improvement-related management • Checking the process that has led to a specific result

19. Key phrases of TQC • Speak with data, 數據會說話 • Quality first, not profit first • Quality at source, 源頭管理 • The next process is the customer • Customer-oriented TQC • TQC starts with training and ends with training

20. Speak with data • Emphasize the use of data However, aware of • False data, • Mistaken data, • Immeasurable

21. Quality First • Customers are satisfied with the quality of products or services • Building quality into product • Building quality into people • Training is essential • Help employee become KAIZEN-conscious

22. Quality First • Making the top quality products • At the low cost • In large quantity • From the very beginning

23. Quality at source • Ask “why” 5 times • The real cause of a machine stoppage • Question 1: Why did the machine stop? • Answer 1: Because the fuse blew due to an overload • Question 2: Why was there an overload? • Answer 2: Because the bearing lubrication was inadequate. • Question 3: Why was the lubrication inadequate? • ……

24. The next process is the customer • Mass production age • The person making the products neither knows nor care who the customers are • The design engineer’s customers • The manufacturing people • (End customers)

25. Customer-oriented TQC, • Not manufacturer-oriented TQC • Build a system for designing, developing, producing, and servicing products to satisfy their customers • 華航 – 退票作業 • 要求旅客繳回機票正本 • 不告訴旅客如何 follow up • Cf. 以客為尊?

26. TQC starts with training and ends with training • Building quality into people

27. Cross-functional management to facilitate Kaizen • “Quality at source” means TQC should be extended to include • Vendors • Suppliers • subcontractors

28. Follow the PDCA cycle • Problem-solving • Management • Design – Plan: product design corresponds to the planning phase of management • Production – Do: making products as designed • Sale – Check: customers satisfied? • Research – Action: how to approach complaints

29. Not PDCF Plan Do Check Fight/fire! No layoff policy Virginia Mason Medical Center, Seattle, WA 改善造就『冗員』 Redeploys employees Training Kaizen Promotion Office Toyota’s suppliers support center

30. Use the QC story to persuade • Case study of shortening telephone waiting time • kaizenStory.doc

31. Standardize the results • There can be no improvement where there are no standards • A way of spreading the benefits of improvement throughout the organization

32. Cross-Functional Management • Building a better system for • Quality • Cost • Scheduling • Resolving inter-unit conflict on • Quality • Cost • Schedule

33. Top management Strategy & planning Production planning Marketing Quality Cost scheduling Production And purchasing Design Production preparation Administrative supports

34. Ideal Product Development 100% Marketing Involvement 50% Engineering production 0% Idea development Model development Design development Trial run

35. Cross Functional Management at Toyota • Clarify its quality goals and deploy them to all employees at every level • Establish a system of close coordination among different department • toyotaXfun.doc