Kaizen

1. Kaizen

3. The Definition of Success: • Health • Relationship • Work: Excellence and Enthusiasm • Sustained over Time

4. Exercise 1 What are your strategies for creating change? Please discuss a change, sale or improvement you made. What was your strategy?

5. The First Definition of Kaizen Making very small step to accomplish large goals

6. Kaizen: History TWI(training within industries)“ Job methods will help supervisors to make many small improvements on the job they are closest to.…..those that could be made without wholesale redesign of machines or tools or department layouts.” Dr. W. Edwards Deming TaiichiOhno & Toyota(kaizen) Toyota Production System Lean Production Six Sigma

7. Kaizen Some Examples

8. Examples • American Cancer Society Study • Be A Safe Driver Study • Health • “The only way to keep your health is to eat what you don’t want, drink what you don’t like, and do what you would rather not”Mark Twain

9. Examples • Health • A 2004 Swedish study showed that older adults who exercised only once a week were 40% less likely to die during the 12 year study period than those who did nothing • A 1999 study of more than 800 residents of Kings county, Washington, showed dramatic health benefits among those who gardened or walked for just an hour a week. This added up to 400 or 500 calories burned but it resulted in a 70% lower risk of sudden cardiac death

10. Examples: Health Exercise • Framingham Study of 5209 residents of the Boston suburb since 1984. Losing one pound a year for 4 years and kept it off, lowered the risk of high blood pressure by 25%. • The Power of Standing, Fidgeting, and Pacing • Overweight people tend to be more sedentary than those who are physically fit. Lean people spent two or more hours a day on their feet, standing, pacing around, and fidgeting. This translated into a 350 calorie a day difference, enough to result in a 30 to 40 pound a year difference. A Mayo Clinic Study, reported in Science

11. Examples: Health Accumulating short bouts of brisk walking—just three minutes each—for a total of 30 minutes a day, improved several measures of cardiac risk as effectively as one continuous 30 minute session. Journal of Clinical Nutrition January. 2009

12. “Ultradian rhythms” refer to 90 to 120-minute cycles during which our bodies slowly move from a high-energy state into a physiological trough. Toward the end of each cycle, the body begins to crave a period of recovery. The signals include physical restlessness, yawning, hunger, and difficulty concentrating, but many f us ignore them and keep working. The consequence is that our energy reservoir—our remaining capacity—burns down as the day goes on. Intermittent breaks for renewal, we have found, result in higher and more sustained performance. The length of renewal is less important than the quality. It is possible to get a great deal of recovery in a short time. Schwartz,T. Manage your energy, not your ime, Harvard Business Review, 2007, October, p63-73.

13. The general idea is to pave the way for full-line distribution by starting with a small order . . . Look at it this way -- when a person has signed an order for your merchandise, even though the profit is so small it hardly compensates for the time and effort of making the call, he is no longer a prospect -- he is a customer. American Salesman

14. Kaizen, the well-known Japanese process of continuous improvement. Kaizen is more a frame of mind than a business process. Toyota workers come to work each day determined to become a little better at whatever it is they are doing than they were the day before. The Economist January 21, 2006

15. Examples • Business • In 1970, GM had a 40% share of the US car and light-truck sales, Toyota has 2% • In 1980, Toyota leaped to 3% • In 1990, 8% • In 2000, 9% • In 2006, 13% • Toyota’s rise is described by the Japanese word, ‘jojo’ which means ‘slowly, gradually, and steadily.’

16. We make so many cars in so many different places with so many people. Our greatest fear is that as we keep growing, our ability to maintain the discipline of kaizen will be lost.” Teruo Suzuki Human Resources Director Toyota

19. Ajourney of 1000 miles must begin With A Single StepLao Tzu

21. Biology of Kaizen Why is it I get my best ideas in the morning while I am shaving?Albert Einstein

22. The Biology of Kaizen “Why is it I get some of my best ideas in the morning while I am shaving?Albert Einstein FEAR QUESTIONS ELIMINATES RESISTANCE

23. I’m all for progress. It’s change I object to. Mark Twain

24. Health: Checklist ICU • Israeli study, engineers observed ICUs over 24 hour periods. Average patient required 178 individual actions per day. • Error rate was 1% • two errors per day, per patient • Central lines are placed in 5 million patients per year. After ten days,, 4% of the lines become infected. • 80,000 infections a year in the US • Fatality rate is 5-28%, depending on how ill at the start • Those who survive line infections spend, on average, a week longer in the ICU.

25. Health: Checklist ICU • After ten days in with a urinary catheter, 4% of ICU patients develop a bladder infection. • After ten days on a ventilator, 6% develop bacterial pneumonia resulting in death, 40-50% of the time.

26. Health: Checklist ICU • Study by Peter Pronovost at John Hopkins 2001. Created a checklist to reduce line infections. Five steps on the checklist: • wash hands • clean patients skin with chlorhexidine antiseptic • put sterile drapes over the entire patient • wear a sterile mask, hat, gown, and gloves • put a sterile dressing over the catheter site once the line is in

27. Health: Checklist ICU • Nurses observed patients for a month. In more than a third of patients, they skipped at least one. • Nurses were then authorized to remind the physicians if they missed any steps. • A year later, the ten-day line-infection rate went from11% before the intervention to 0%. • The estimated number of infections prevented was 43, the number of deaths prevented was estimated at 8, the savings estimated was 2 million dollars.

28. Health: Checklist ICU • A second study by Pronovost used a checklist for mechanical ventilation. • The proportion of patients who didn’t receive the recommended care dropped from 70% to 4%, • The occurrence of pneumonias fell by 25% • 21 fewer patients died than in the previous year

29. Health: Checklist ICU • New England Journal of Medicine, December, 2006, the Keystone Initiative. Several Michigan hospitals used ICU checklists • Within the first 3 months of the study, the infection rate in Michigan’s ICU’s decreased by 66%. • Infection rates fell to 0. • In eighteen months, the hospitals saved an estimated $175 million and more than 1500 lives. The results have been sustained for four years

30. Advantages of Kaizen • Trains the brain • Allows time for skill development

31. My players would probably tell you they never heard me mention winning. I don’t think scores indicated you won or lost. I want them to work each and every day to improve themselves.John Wooden

32. The numbers were used to define a goal that was simple and realistic, yet they could thrust us ahead toward an incredible improvement. From a list of fifteen possible measures, we selected five that had really cost us the last championship. These defined five “trigger points,” five areas which comprised the basis of basketball performance for each role and position. We challenged each player to put forth enough effort to gain just one percentage point in each of those five areas. We defined each player’s career best effort in each area and said, “Don’t try to go 10% above it. And don’t let yourself go 10% below it. Just concentrate on moderate, sustainable improvement.” As we saw it, a one percent improvement in five areas for twelve players gave us a 60% increment!Pat Riley, The Winner Within

33. Advantages of Kaizen • Trains the brain • Allows time for skill development • Increases pleasures of daily life

34. Success is how you collect your minutes. You spend millions of minutes to reach one triumph, one moment, then you spend maybe a thousand minutes enjoying it. If you were unhappy through those millions of minutes, what good is the thousand minutes of triumph? It doesn’t equate. How many ‘successful’ people end up in suicides? Life is made of small pleasures. Good eye contact over the breakfast table with your wife. A moment of touching a friend. Happiness is made of those tiny successes. The big ones come too infrequently. If you don’t have all of those zillions of tiny successes, the big ones don’t mean anything. Norman Lear

35. I don’t know what my relationship to society is. Are people less bigoted than they were before All in the Family? But if there is one thing I want my children to learn from me, it’s to take pleasure in life’s daily small successes. It’s the most important thing I’ve learned in 57 years. Norman Lear

36. Advantages of Kaizen • Trains the brain • Allows time for skill development • Increases pleasures of daily life • Comfort in overwhelming crisis

37. ASecondDefinitionofKaizen

38. “The research I do is, well, just enough research,” he replied. “I wouldn’t even call it research, even though I’ll do some reading, take some walks. A key evening in the imaging of ‘The Waterworks’ came when I was just looking out the window” – he lives in the Village “and a fog began to descend on the city. It started moving slowly down, eliminating the World Trade Center, the Woolworth Building, the twentieth century. Finally, what was left was the nineteenth century. I was looking out at the Village and then went walking on lower Broadway, and I thought, this is Melville’s New York you’re looking at! Is that research?” E.L. Doctorow, The New Yorker

39. Internet Disneyland Credit Card Post-It Band-Aid Baby Powder Schindler’s List Bar Codes The Simpsons Viagra Penicillin Microwave “Small” Creative Moments

40. A Second Definition of Kaizen Using small moments to learn large lessons.

41. Kaizen or Innovation?A Quiz • Richard Feynman asked himself how a knife can be sharp if its atoms are always “jiggling”? • Stirrup • Falling in Love • Quitting Smoking “Cold Turkey”

42. Kaizen or Innovation?A Quiz Part 2 • The invention of the laser by Bell Laboratories • Marconi’s invention of the radio • The computer • Transistor

43. When to Use Kaizen When innovation fails After it succeeds

44. Kaizen vs. Innovation A Second Look

46. We kept thinking we would find “the one big thing,” the miracle moment that defined breakthrough. We even pushed for it in our interviews. But the good-to-great executives simply could not pinpoint a single key event or moment in time that exemplified the transition. Frequently they chafed against the whole idea of allocating points and prioritizing factors. In every good-to-great company, at least one of the interviewees gave an unprompted admonishment, saying something along the lines of, “look, you can’t dissect this thing into a series of nice little boxes and factors, or identifying moment of “Aha!” or the “one big thing.” It was a whole bunch of interlocking pieces that built one upon another.

47. No matter how dramatic the end result, the good-to-great transformation never happened in one fell swoop. There was no single defining action, no grand program, no one killer innovation, no solitary, lucky break, no wrenching revolution. Good to great comes about by a cumulative process – step by step, action by action, decision by decision, turn by turn of the flywheel – that adds up to sustained and spectacular results. Jim Collins

48. “It’s easy to believe that Jeff Bezos is one of the great innovators, but that is not exactly the case. His rise into Fortune 500-dom actually has little to do with innovation and more to do with iteration. If anything, Amazon demonstrates how a cutting-edge Internet company – of all things – can succeed slowly. The trick is taking a million tiny steps – and learning quickly from your missteps.” Fortune Magazine, May 5, 2008, p.128

49. Far more often, innovation doesn’t arrive like a thunderbolt. It emerges incrementally, in bits and chugs, forged by a mix bag of coworkers from up, down, and across an organization, sweating and wrangling it out in the trenches. Glamorous, hardly. Powerful, absolutely. Jack Welch, past CEO, GE Business Week, April 21, 2008

50. Kaizen and Mistakes