Introduction to Kaizen

1. Introduction to Kaizen

2. Agenda Kaizen! • Learn the basics of Kaizen • Understand Kaizen terminology • Recognise when to Kaizen • Understand how to Kaizen • Kaizen tools & examples

3. What is Kaizen? • Kaizen is the focused application of lean tools to rapidly reduce waste in a process to improve cost, quality, delivery, speed, flexibility and responsiveness to internal and external customer needs. • Kaizen is a vehicle for driving quick hit value by implementing “do-now” solutions through employee involvement • Kaizen assembles cross-functional teams in a focused, 3-5 day dedicated event to reduce waste and attain sustained results

4. Why Kaizen? Waste comes in many forms, described using the “Seven Wastes”: • Transportation (moving material/product from one place to another) • Inventory (material/product/information waiting to be processed) • Motion (excess movement and/or poor ergonomics) • Waiting (delays caused by shortages, approvals, downtime) • Overproduction (producing more than is needed) • Overprocessing (adding more value than the customer is paying for) • Defect/Rework (doing the same job/task more than once) Benefits & Expectations of Reducing Waste • Less Labour Requirements • Less Space Requirements • Increased Flexibility • Decreased Costs • Improved Quality • Improved Responsiveness • Increased Innovation • Increased Employee Enthusiasm

5. When should a Kaizen Event be used? • A Kaizen event should be completed once the scope and boundaries of a problem are clearly defined and understood • When results are needed immediately • During long term projects to gain momentum, build credibility and accelerate process improvement results • As a change agent when there is resistance to stimulate change • As a project launching tool Always use a Kaizen as a continuous improvement tool

6. Kaizen Approach Kaizen is a vehicle to implement ‘Quick Hits’ Pre-Event Preparation – Identify and plan narrow scope events Kaizen Event – Implement do-now quick hits solutions during the Kaizen event Follow-up Action Items – Kaizen activity typically ends 20 days following Kaizen Pre-Event Prep (3-5 days) Kaizen! Event (3-5 days) Event Follow-up (15-20 days) A complete Kaizen timeline should last no longer than 30 days.

7. Steps within a Kaizen • Kaizen organisation and preparation • Value Stream Map the process • Measure the process • Determine non-value added activities • Determine root causes • Review waste elimination techniques • Brainstorm, affinitize and prioritise process improvements • Create future state value stream map • Create action item list • Implement process improvements • Create standard operating procedures • Management team presentation • Monitor performance and achieve improvement goals • Complete action item list

8. Draft Kaizen Event Kaizen waste elimination methodology follows the DMAIC structure Pre-Event Preparation: Define - Select an area of the business that must be addressed based upon the VOB and the VOC - Select event sponsor - Select team members - Schedule the event and communicate - Pre Kaizen checklist - Gather necessary data/information - Create a RACI chart - Define the goals/objectives of the event - Create a project Charter - Perform a project risk assessment - SIPOC During the Event: Measure - Train the team members - Take before photos of the area - Map the process (VSM) - Understand the current/baseline conditions - Create a set of performance measures

9. Draft Kaizen Event Analyse - Analyse the VSM and data - Brainstorm possible solutions and prioritise - Conduct mid-week review - Determine the best course of implementation steps Improve - Implement a pilot - Review pilot data and correct if necessary - Implement the final solution - Take photos of the improved area Control - Review performance metrics - Create standard operating procedures - Create Kaizen team presentation - Present results

10. APPENDIX

11. Example of a Project Charter

12. Typical Kaizen Weekly Schedule Monday Tuesday Wednesday Thursday Friday 9AM Mid-Week Review Measure (Present State Analysis) VSM Future State Design Finalise Future State Complete Training on Std Work Implement Improvements Perform process Participant Training Tweak design Finalise Pre-Event Prep 10:30 AM Implement Improvements Analyse Final Presentation 12:30 PM Lunch Lunch Lunch Lunch Lunch & Celebration Create and Implement Standard Work Measure Future State Calculate Actual Benefits Kaizen kick off Lean/Kaizen training Specialised training Analyse Brainstorm Ideas Idea Effort/Impact Idea Prioritisation Future State Design Implement Improvements Perform process Participant Training Tweak design 14:30 PM Measure (Present State Analysis) VSM Process Part Design Review Create Final presentation 17:00 PM

13. Process Flow Tools • SIPOC – a diagram for identifying the basic elements of a process. It is a good tool for translating customer requirements into output requirements and identifying related key output variables. • Process Mapping – Covers the elements of creating a flow chart • Value Stream Map – Process map with data, a tool for capturing process data (WIP, setup time, processing time/unit, error rates, idle time etc) • Value-added/Non-value-added analysis – gives guidelines for identifying which work in a process your customers value and don not value • Time Value Maps - Task time and takt time are visual tools for emphasizing how process time is divided between value added time and non-value added work • Benefit and Effort Matrix – Create many diverse ideas for purpose improvement and waste elimination

14. Example of a SIPOC Diagram

15. Example of a Value Stream Map

16. Example of Task/Takt Time Analysis Need to reduce to meet customer demand The takt time is the rate of customer demand to get this you should take the amount of available work time divided by the customer demand during that time period.

17. Example of Benefit and Effort Matrix