The Lean Enterprise All About Kaizen

1. The Lean EnterpriseAll About Kaizen Lean Foundations Continuous Improvement Training

2. Another methodology: Kaizen • Within the Continuous Improvement tools arena, perhaps none is more critical than Kaizen events. While other lean tools may stand alone, Kaizens seek to change culture and processes through the utilization of many of the lean enterprise principles • Kaizens seek small daily improvements resulting in large yearly savings • Compared to a large-scale DMAIC project, Kaizens focus on short-term “blitzes” to make immediate impact and change (change for the better) • The process of leading a Kaizen however, follows the DMAIC format

3. Learning Objective • This section seeks to standardize the process of Kaizens in an attempt to provide useful tools allowing ‘first-time’ facilitators to ‘hit the ground running’ with a project of their own. One important concept is to start small and tackle the more complex problems at a later date - once momentum is built and the Kaizen process has been understood • Some of the tools include a Kaizen Schedule, Kaizen Area Improvement Sheet, 7W and 5S forms, Area Action Form, Prioritization Matrix, and a Problem Record Sheet (These are embedded in the presentation and located in forms section …)

4. Overview • Kaizen is one of the critical tools within a Continuous Improvement Process (CIP) Mistake Proofing 5S VSM Kaizen events Visual Management Kanban Cellular Layout Set-up Reduction Problem Solving Standardized Operations TPM

5. Overview • What is Kaizen ? (Ky-Zen) “Continual Improvement” Kai = Change Zen = Good (for the Better) The Basic Philosophy Is to Involve All Employees in Small, Daily Improvements within their Work Areas.

6. Overview • Benefits of Small Daily Improvements can Add Up 20% (One Time) 1/10 of 1% (Every Day) 20% Improvement 1/10 x 250 Workdays (One Time) 25% Improvement Per Year

7. DMAIC and PDCA FIRST - Standardize, Do, Check, Act (Ensure process is stable) THEN – Plan (for more improvement), Do, Check, Act D Identify Waste Plan Collect Data Identify Desired Result Find a Solution M Do Implement Solution (PILOT first) A Did not Check Evaluate achieve desired result Achieve desired result ? Standardize (ROLL-OUT SOLUTION) I Act Prevent Recurrence Mistake-proof C

8. Overview • What is a Kaizen event? • A Kaizen event is a planned event (2 - 5 days) of intense improvement activities directed at specific areas of the business toward a larger goal • Kaizen events are essentially narrow-focused, short-term DMAIC projects. These can ALSO be done as part of any Lean, BB or GB project • A Kaizen event is a cycle of improvement • How do I do a Kaizen event ? • You do a Kaizen the same way as a DMAIC project and using PDCA as your guide

9. Cycle of ‘Continual’ Improvement • Kaizens follow a continuing cycle of improvement • S = Study the change, assure it is stable – then, improve again!

10. Overview • Kaizen concentrates on improving several aspects of the business: • Kaizen concentrates on improving several aspects of the business: • Safety • Quality • Speed • How? Value to Customer Pull System Waste (Muda) Elimination 1-piece Flow Working to Takt Time 5S TPM

11. Benefits of a Kaizen • Teamwork • Everyone is able to participate and make improvements • No one individual, but a team, make the improvements • Communication • Improved relations between associates and management • Education • Improved problem solving • The more you teach someone to fish the more than can feed themselves

12. Benefits of a Kaizen • Awareness • Understanding of broad issues and objectives of the organization as a whole • Better understanding of Continuous Improvement and the challenges involved with Change • Confidence • Stronger feelings of self-worth • Empowerment • Increased control over the job and work environment which fosters ownership and commitment to the change process All employees now feel they have a voice in the process!

13. Define (Plan) Measure (Do) Analyze (Check) Improve & Control (Act) Planning requires good Project Management

14. How is a Kaizen Done? (With Good planning!) • Groundwork Period: (D-Phase/Plan)

15. The Kaizen Groundwork Period • Determining Areas of Improvement • Document current state (performance)

16. Kaizen Preliminary Day • Preliminary Day: (D-Phase/Plan)

17. 7W Form

18. 6S Form (Embedded below) Your Company

19. Kaizen Day 1 • Day 1: M-Phase/Do

20. Kaizen Day 1 • Identify and Track Improvement Actions

21. Low Cost to Implement Work Methods (Man) High Priority Methods Materials Low Priority High Cost to Implement Machine Kaizen Day 1 • Prioritize Actions: (Use Project Prioritization Matrix)

22. Kaizen Day 1 • Suggestions: • Take pictures and document the ‘BEFORE’ condition (setup) !! • You may also list these on a ‘Problem Record Sheet’

23. Kaizen Day 2 • Day 2: Analyze Phase/ Check • Test/ Pilot/ Verify Solutions

24. Kaizen Day 3 • Day 3: Improve & Control Phase (Act) • Complete Final Report-out to Management and Sponsors

25. Kaizen Best Practices • No rank on team, each person gets one vote (similar to brainstorming techniques) • Be creative, practical, and open minded to other ideas (“Think outside-of-the-box” and break Paradigms) • Don’t blame others and ALL questions are good questions • Accomplish as much as you can during the Kaizen • Document results with pictures for presentation to show verification • HAVE FUN !! (This is the time to work on culture change !)

26. Information to Review at Initial Roll-Out Meeting • Overview of Process • Key Factors for Success: • Composition of team • Team member background • Management Commitment • Up-front agreement and understanding • Employees are the greatest resource - • give them the tools, training, & support to do a great job

27. Information to Review at Initial Meeting

28. Workshop FundamentalsStakeholder Analysis • Composition of Team • Involvement of All People Affected by Changes • Support and Commitment of Top Management • Upfront Agreement and Understanding of Workshop Requirements

29. Team Members • Representatives from these areas: • Operators from area (2 from each shift) • Technical Resources • Industrial, Process, and Design Engineers • Safety • Maintenance • Management (middle to upper levels) • Manufacturing Supervision • Optional Representatives from Production Control, Quality, Materials Management, Union

30. Desired Background of Team Members • Knowledge & Experience of the Process Being Studied • Team Player • Willing to Change • Positive Mental Attitude • Innovative and Creative • Able to Think Beyond the Current Way of Doing Things • Recognize & Accept that the Workshop May Involve Long Hours

31. Management Support& Commitment Required • Clear Empowerment to Team Members to Make Change • Presence of Top Leadership at Kick-Off & Wrap-Up Meetings • Demonstrate Support by "Dropping In" at Various Times During the Workshop • Expectation of Workshop Outcome Conveyed Clearly to Team. • "Champion" Identified to Support the Process and Deal with Roadblocks • Provide Recognition & Feedback

32. Managerial Responsibilities and Support • Commitment to Support Action Plans that Deal with Productivity Issues Such as - • Cross Classification • Multi-Function Operators • Manpower Reductions • Work Element Changes • Standardized Operations • Team Empowerment to Use Other Areas as a Resource to Address Issues Impacting Operations with Waste. • Support to Implement the Ideas or Action Plans that can be Accomplished During the Workshop Period

33. Managerial Responsibilities and Support • Review with Workshop Team Members and Worksite Personnel Prior to Workshop Beginning • Commitment to People Displaced • Company Expectations • Support for Making Change • Company and Process Competitive Position • Workshop Agenda and Scope • Ongoing Activities • Provide Information Regarding Issues Such as Safety, Quality, Productivity, Delivery, Cost Drivers and Schedule Performance

34. Managerial Responsibilities and Support • Recommendation for Workshop Focus (e.g. Current Problem Area) or Concurrence with Workshop Facilitator Suggestion • Understanding that Workshop Facilitators will Push Group to Reach for Solutions to the Opportunities Found, Potentially Impacting Sensitive Issues • Providing the List of Team Members within Sufficient Time for Workshop Facilitators to Review and Adjust if Necessary to Achieve the Desired Composition and Background • Reviewing "Kaizen Activity Contract" and Having all Aspects Completed Prior to Workshop Facilitator's Arrival

35. During The Workshop • The Involvement of the Targeted Area Team Members (Operators, Technical Support, Supervision, Maintenance etc.) is Critical to the Success of the Workshop. Let Them Know how Important Their Input and Support are to you. • Top Management Support of Process Must Be Displayed • Team Member Reviews are Necessary Before Changes to Targeted Area are Made • Establish Target Dates for Follow-Up

36. Utilize a Kaizen Checklist

37. Utilize a Kaizen Checklist

38. Kaizen Workshop - Best Practices • Distribute all printed materials for learners • Apply visual controls to model process, use workplace organization • Set Target Floor Area Facilitator materials by exit for them to carry out • Set up message board, beeper check table, flip charts

39. Kaizen Workshop - Best Practices • Complete Action Plan Items From Workshop • Prepare a Plan to Implement Workshop Concepts Throughout Facility. Continue Implementing! • Follow-Up and Review Status / Progress on Action Plan Items. Determine New Action Plans

40. Kaizen Workshop - Best Practices • Discuss the Purpose of the Workshop • Conduct Hear, See, Do Sessions • Close the Workshop • Finalize Commitment to Workshop Results • Introduce the Follow-Up Plan • Review Impact to other Standardized Processes • Report Cost Savings • Discuss Workshop Continuation for Visiting Guests • Break Down Main Classroom/ Meeting room

41. Kaizen Workshop - Best Practices • Complete the Contract • Complete 30/60/90 day ‘Results’ report • Review New Initiatives • Re-assess Customer Needs • Monitor Changes to Sponsor Approval • Update Cost Savings Progress • Complete the Monthly ReportingForm

42. The Lean EnterpriseAll About Kaizen Lean Foundations Continuous Improvement Training