Internal Communication & Kaizen

1. Internal Communication&Kaizen Benoît ROZIERES Jérôme DIDOT How a Kaizen approach may humanize the workplace?

2. Summary : - Introduction to Kaizen - Tools used to develop a Kaizen spirit at workplace - Application of Kaizen attitude within Toyota - Some reasons why Kaizen can lead to a failure - Conclusion Internal Communication & Kaizen

3. Internal Communication & Kaizen • Introduction to Kaizen – PartI: Basis of Kaizen Japan, 1950’s: A post-WorldWarII need to restore the nation Experts worked on methods & processes destined to improve working structures : • Operations standardization & optimization • Constant measures for continual improvement

4. Internal Communication & Kaizen • Introduction to Kaizen – PartII: Ancestral meaning Japanese translation of “KAIZEN”: ‘KAI’ : ‘change’ or ‘the action to correct’ ‘ZEN’ : ‘in a good way’  improvement Not a simple concept, but a whole philosophy Ancestral meaning focused on better life in society

5. Internal Communication & Kaizen • Introduction to Kaizen – PartIII: A way of thinking Workplace ‘quality’ strategy: Processes, monitors then adjusts technics Eliminates mental & physical wasteful works/tasks Improves continuously the way of doing business - Linkage between a process & its result as a whole - Learning & non-judgmental views re-examination - Smooth way of approaching changes (not radical!) Former ‘Kaizen’ values applied to the business place

6. Internal Communication & Kaizen • Introduction to Kaizen – PartIII: A way of thinking Every stakeholder is an equal active actor for the development & improvement of the company. “Upward model” of the basic organizational chart Customers Staff (Workers) Middle Management CEO & Top-Management UPWARD

7. Internal Communication & Kaizen • Tools used to develop a Kaizen spirit at workplace - 5S Methodology - Total Quality Management (TQM) - PDCA (“Wheel of Deming”) - Six Sigma | - Lean Thinking | - Balanced Scorecard - …  TOC Lean Six Sigma

8. Internal Communication & Kaizen - 5S Methodology Organization, Orderliness, Cleanliness, StandardCleanup, Discipline - Sorting - Simplifying - Shining - Standardizing - Sustaining • Improve levels of quality communication • Improve information sharing, morale, safety

9. Internal Communication & Kaizen - Total Quality Management (TQM) Management strategy in organizational processes : - Quality - All members’ participation (Teamwork) - Long-term success - Benefit to all stakeholders • Educate and create employees’ satisfaction

10. Internal Communication & Kaizen - PDCA (“Wheel of Deming”) Problem-solving process used in quality control - PLAN - DO - CHECK - ACT • Review all steps • Improve it for next implementation

11. Internal Communication & Kaizen - Six Sigma / Lean Thinking  TOC Lean Six Sigma Set of practices that improve processes by eliminating defects - Executive Leadership (CEO + Top Mngers) - Champions - Master Black Belts - Experts - Black Belts - Green Belts - Yellow Belts • Professionalize quality management functions • Improve process to that level of quality or better

12. Internal Communication & Kaizen - Balanced Scorecard Concept measuring concordance of objectives with corpo’ strategy, by providing greater contextual justification for each measure taken. - Learning & Growth • jobs (human capital), • systems (info capital), • climate (organization capital) • Provide a ‘human’ view of a business to act in the best long-term interests of both workers and CEO.

13. Internal Communication & Kaizen Kaisen and Toyota: Reduce cost, increase productivity is the key of the success. For Toyota, the internal crisis during the 90’s wasn’t a symbol of good corporate management.Kaisen method was the solution to:Fight the wasting to reduce the number of the tasks and the agents of manufacturing, thus increase the productivity.

14. Internal Communication & Kaizen • Some reasons why Kaizen can lead to a failure Reason 1: Lack of internal communication Reason 2: Lack of top-down management support Reason 3: Lack of middle management/supervisor buy-in Reason 4: Non understanding of the link with human behavior Reason 5: Lack of customer focus Reason 6: Lack of improvement measures Reason 7: Lack of lean leadership Reason 8: Gap between human measures and lean goals Reason 9: Using Kaizen as a sole improvement measurement Reason 10: Using bonus pay systems to only generate ‘profit’

15. Internal Communication & Kaizen • Conclusion • Kaisen activity imply 4 effects: • Paying attention to the quality and the productivity • A long and durable process not short and radical (innovation): acquiring little by little kaisen and problem solving ability • Perceiving the work place as their own • Understanding the meaning of kaisen • Obviously Kaisen imposed provokes their workers hostile or negative reaction against improvement of their own working process. • So, it’s the priority for company to construct good human relationship among them, which workers kaisen activities can be one of the means to involve them in.