PDSA CYCLE

5S
KAIZEN CONCEPT
JIT
QUALITY CIRCLES
OTHER PROCESS AND IMPROVEMENTS
SUBMITTED BY
Aakash Bhardwaj /2009
Anubhav Tiwari 41/2009
Nima W Megeji 32/2009
Ruchi Sood 56/2009
 PHASE1:Identify the opportunity
Customer surveys, employee surveys, Brainstorming by
workgroups
 PHASE2:Analyse the current process
1. Develop process flow diagram
2. Define target performance measures
3. Collect the available data and information using Pareto chart
analysis, Flow chart, run charts, check sheets, cause and
effect diagram, opportunity flow diagram, control charts
 PHASE3:Develop the optimal solution(s)
Creativity plays a major role
 Create new processes
 Combine different processes
 Or Modify the existing processes
 Brainstorming is principle technique
 PHASE4:Implement changes
Contents of implementation plant report must fully
describe
 WHY will it be done?
 HOW
 WHEN
 WHO
 WHERE
Monitoring activities using measurement tools like pareto
diagrams, run charts,questionaires,etc.
 PHASE5:Study the results
 Institutionalize meaningful change
 Ongoing Measurement
 Evaluation to achieve continuous improvement
 If the team is not satisfied then some of the phases will
be repeated.
 PHASE6:Standardise the solution
 Positive control (Positrol)of process

 Process certification

 Operator certification

 Prevents back sliding

 PHASE7:Plan for the future

 Regardless of the how successful initial

improvement efforts are, the improvement
process continues.
The Japanese 5S Philosophy
An essential step for waste elimination and to achieve
Productivity, Quality, Cost, Delivery and Safety.
Continuous Improvement
 Original Translation Description

Seiri Sort Clearing Removal of all items that are

not needed within the scope of
current production
Seiton Set in Arranging Every tool and material to be
Order used in production should have
a place
Seiso Shine Neatness Ensuring everything in the
place stays clean. Both
prevention & cleaning routines
apply
Shitsuke Standardis Discipline Methods used to obtain
e profits/gains, SOPs, Adherence
to rules/guidelines
Seiketsu Sustain Ongoing Ensuring the gains are held &
Improvement continue to be made.
 The English usage of "kaizen" can be: "continuous
improvement" or "continual improvement." Literally, it
translates to: "good change."

 Kaizen is a daily activity, the purpose of which goes beyond

simple productivity improvement.

 The philosophy can be defined as bringing back the thought

process into the automated production environment
dominated by repetitive tasks that traditionally required little
mental participation from the employees.
 It is also a process that,
 when done correctly,
 humanizes the workplace,
 eliminates overly hard work ("muri"), and
 teaches people how to perform experiments on
their work using the scientific method and
 how to learn to spot and
 eliminate waste in business processes.
 People at all levels of an organization can participate in
kaizen, from the CEO down, as well as external
stakeholders when applicable.
 The format for kaizen can be individual, suggestion system,
small group, or large group.
Figure 1.6 Hierarchy of KAIZEN involvement
Top Management Middle Supervisors Workers
Management
and Staff
Deploy and Use KAIZEN in
Be determined to implement Engage in
functional roles
introduce KAIZEN KAIZEN goals as KAIZEN through
as a corporate directed by top Formulate plans for
management KAIZEN and provide the suggestion
strategy through policy system and
guidance to workers
Provide support and deployment and small-group
cross-functional Improve
direction for KAIZEN activities
management communication with
by allocating Use KAIZEN in workers and sustain Practice
resources functional high morale discipline in the
capabilities workshop
Establish policy for
Establish,
KAIZEN and cross- maintain, and Support small-group Engage in
functional goals upgrade activities (such as continuous self-
standards quality circles) and
Realize KAIZEN development to
Make employees the individual
goals through policy KAIZEN- become better
deployment and suggestion system problem solvers
conscious through
audits intensive training Introduce discipline
programs in the workshop Enhance skills
Build systems, Help employees and job-
Provide KAIZEN
procedures, and develop skills and performance
tools for problem suggestions
structure conducive expertise with
solving
to KAIZEN cross-education
 At Toyota, it is usually a local improvement within a
workstation or local area and involves a small group in
improving their own work environment and productivity. This
group is often guided through the kaizen process by a line
supervisor; sometimes this is the line supervisor's key role.
 While kaizen (at Toyota) usually delivers small
improvements, the culture of continual aligned small
improvements and standardization yields large results in the
form of compound productivity improvement. Hence the
English usage of "kaizen" can be: "continuous improvement"
or "continual improvement." Literally, it translates to: "good
change."
 Kaizen methodology includes making changes and monitoring results,
then adjusting.
 Large-scale pre-planning replaced by smaller experiments,
 extensive project scheduling
 Aiding rapid adaption of new improvements are suggested.

 This philosophy differs from the "command-and-control" improvement

programs.

 In modern usage, a focused kaizen that is designed to address a
particular issue over the course of a week is referred to as a "kaizen
blitz" or "kaizen event". These are limited in scope, and issues that arise
from them are typically used in later blitzes.
 The Toyota Production System is known for
kaizen, where all line personnel are expected
to stop their moving production line in case of
any abnormality and, along with their
supervisor, suggest an improvement to
resolve the abnormality which may initiate a
kaizen.
 The PDCA cycles
 The cycle of kaizen activity can be defined as:
 standardize an operation →
 measure the standardized operation (find cycle time and
amount of in-process inventory) →
 gauge measurements against requirements →
 innovate to meet requirements and increase productivity →
 standardize the new, improved operations →
 continue cycle ad infinitum.
 This is also known as the Shewhart cycle, Deming cycle, or
PDCA
Key elements of Kaizen are:
1. Quality, effort ,
2. Involvment of all employees,
3. Willingness to change and
4. Communication.

The Five Foundation Elements Of KAIZEN:

1) Team work
2) Personal Discipline
3) Improved morale
4) Quality circles
5) Suggestions for improvement
THREE KEY FACTORS ARISE:
1) Elimination of waste (muda) and efficiency
2) The Kaizen five - S framework for good housekeeping.
 Seiri- Tidiness
 Seition- Orderliness
 Seiso – cleanliness
 Seiketsu- Standardized clean up
 Shiitsuke
3) Standardization
In Japanese
 Kai (Change)

 Zen ( become good)

 Japanese companies distinguise between

Innovation (Radical) and Kaizen (continuous)

Resulting in:
 Continuous Incremental Improvement
Figure 1.2 Japanese perceptions of job functions (1)

Top Management

Middle Improvement
Management
Supervisors Maintenance
Workers

Figure 1.3 Japanese perceptions of job functions (2)

Top Management Innovation

Middle KAIZEN
Management
Supervisors Maintenance
Workers
Figure 1.4 Western perceptions of job functions

Top Management Innovation

Middle management
Supervisors Maintenance
Workers

Figure 1.5 Innovation-centered job functions

Innovation

Maintenance
 KAIZEN Innovation
Japan Strong Weak
West Weak Strong

KAIZEN Innovation
1. Effect Long-term and long-lasting Short-term but dramatic
but undramatic
2. Pace Small steps Big steps
3. Timeframe Continuous and incremental Intermittent and non-
incremental
4. Change Gradual and constant Abrupt and volatile
5. Involvement Everybody Select few “champions”
6. Approach Collectivism, group efforts, Rugged individualism,
systems approach individual ideas and efforts
7. Mode Maintenance and Scrap and rebuild
improvement
8. Spark Conventional know-how and Technological break-throughs,
state of the art new inventions, new theories
9. Practical Requires little investment but Requires large investment but
requirements great effort to maintain it little effort to maintain it
10. Effort orientation People Technology
11. Evaluation criteria Process and efforts for better Results for profits
results
12. Advantage Works well in slow-growth Better suited to fast-growth
economy economy
Figure 2.2 Ideal pattern from innovation

Time

Figure 2.3 Actual pattern from innovation

Time
Figure 2.4 Innovation alone
What should
be (standard)
Maintenance
What should
be (standard)
Maintenance What actually
Innovatio is
n What actually
is

Time

Figure 2.5 Innovation plus KAIZEN

New rd
aKAIZEN
stand

Innovation

New
d
standar KAIZEN
Innovation
Time
Science Technology Design Production Market

Innovatio KAIZEN
n
 Another comparison of Innovation
and KAIZEN
Innovation KAIZEN

Creativity Adaptability
Individualism Teamwork (systems approach)
Specialist-oriented Generalist-oriented
Attention to great leaps Attention to details
Technology-oriented people-oriented
Information: closed, proprietary Information: open, shared
Functional (specialist) orientation Cross-functional orientation
Seek new technology Build on existing technology
Line + staff Cross-functional organization
Limited feedback Comprehensive feedback
 A QC is a voluntary group of employees who perform
similar duties and meet at periodic intervals, often
with management, to discuss work-related issues and
to offer suggestions and ideas for improvements, as in
production methods or quality control.

 It is a participatory management technique that

enlists the help of employees in solving problems
related to their own jobs.
 Joel E. Ross and William C. Ross define a
quality circle as "a small group of employees
doing similar or related work who meet regularly to
identify, analyze, and solve product-quality and
production problems and to improve general
operations. The circle is a relatively autonomous
unit (ideally about ten workers), usually led by a
supervisor or a senior worker and organized as a
work unit.“
 Quality Circles is a term used in human
resources management that refers to the
technique of motivating workers by allowing them
input into decisions concerning the production
process, thereby increasing productivity and profits.
 Productivity will increase for two reasons:
 because the person best able to decide the most

efficient way to do a job is the person who does it

for a living and
 because employees who have greater control

over the product will be more committed and

effective workers
 Most commonly found in manufacturing environments,
quality circles are applicable to a wide variety of
business situations and problems.

 They are based on two ideas:

 Employees can often make better suggestions
for improving work processes than
management; and
 Employees are motivated by their participation
in making such improvements.

 Thus, implemented correctly, quality circles can help a

small business reduce costs, increase productivity, and
improve employee morale.
Concept

The concept of QC is primarily based upon recognition of the value

of the worker as a human being, as someone who willingly
activises on his job, his wisdom, intelligence, experience, attitude
& feelings.
It is based upon the HRM considered as one of the key
factors in the improvement of product quality &
productivity. QC concept has 3 major attributes:

a. Quality Circle is a form of participation management.

b. Quality Circle is a human resource development technique.

c. Quality Circle is a problem solving technique

 The World Turned Upside Down!

CONTROL
CUSTOMER FOCUSED /
CONTINUOUS IMPROVEMENT
CEO
OPERATORS
SNR MGT
SUPERVISORS
MANAGEMENT
MANAGEMENT

SUPERVISORS SNR MGT

OPERATORS CEO
MASS PRODUCTIVITY / COACH
SCIENTIFIC MANAGEMENT
 To improve quality, productivity & profitability
 To secure employee involvement, motivation &
development
 To improve management-employee relations
 To improve communications at all levels
 To develop team spirit among the employees
 To provide better working environment of employees.
The benefits are that QCs:

 Promote individual self-development

 Promote teamwork and fellowship

 Improve overall company performance and corporate

image
 A Quality Circle has an appropriate organisational
structure for its effective and efficient performance. It
varies from industry to industry, organisation to
organisation. But it is useful to have a basic framework
as a model.

 The structure of a Quality Circle consists of the following

elements.
i. A steering committee: This is at the top of the structure.
It is headed by a senior executive and includes
representatives from the top management personnel and
human resources
development people. It establishes policy, plans and
directs the program and meets usually once in a month.

ii. Co-coordinator: He may be a Personnel or

Administrative officer who co-ordinates and supervises
the work of the facilitators and administers the
programme.

iii. Facilitator: He may be a senior supervisory officer. He

coordinates the works of several quality circles through
the Circle leaders.
iv. Circle leader: Leaders may be from lowest level workers
or Supervisors. A Circle leader organizes and conducts
Circle activities.

v. Circle members : They may be staff workers. Without

circle members the programme cannot exist. They are the
lifeblood of quality circles. They should attend all
meetings as far as possible, offer suggestions and ideas,
participate actively in group process, take training
seriously with a receptive attitude. The roles of Steering
Committee, Co-0rdinator, Facilitator, Circle leader and
Circle members are well defined.
The launching of Quality Circles involves the
following steps:

 Expose middle level executives to the concept.

 Explain the concept to the employees and invite

them to volunteer as members of Quality Circles.

 Nominate senior officers as facilitators.

 Form a steering committee.

 Arrange training of co-coordinators, facilitators in
basics of Quality Circle approach, implementation,
techniques and operation. Later facilitator may
provide training to Circle leaders and Circle
members.

 A meeting should be fixed preferably one hour a

week for the Quality Circle to meet.

 Formally inaugurate the Quality Circle.

 Arrange the necessary facilities for the Quality

Circle meeting and its operation
 List out problems
 Discussion over the list of problems
 Selected problem will be analyzed
 Arrive at solution
 Present it to management for action
 Management studies the recommendations
 Implementation
 QC members are recognised & rewarded.
 Inadequate Training
 Unsure of Purpose
 Not truly Voluntary
 Lack of Management Interest
 Quality Circles are not really empowered to make
decisions.
 They have not had enough training
 They have not been given sufficient autonomy
 The Quality Circles have been started in isolation
and not part of a wider programme of Company-
wide Continuous Improvement
 Definition - Just In Time (JIT) is an inventory strategy
implemented to improve the return on investment of a
business by reducing in-process inventory and its
associated carrying costs.

 Philosophy- The philosophy of JIT is simple - inventory

is defined to be waste. JIT inventory systems expose
the hidden causes of inventory keeping and are
therefore not a simple solution a company can adopt;
there is a whole new way of working the company must
follow in order to manage its consequences.
 Equation- In short, the just-in-time inventory system is
all about having “the right material, at the right time, at
the right place, and in the exact amount” without the
safety net of Inventory, the implications of which are
broad for the implementors.

 Principle- The process is driven by a series of signals,

which can be Kanban, that tell production processes
when to make the next part. Kanban are usually
'tickets' but can be simple visual signals, such as the
presence or absence of a part on a shelf. When
implemented correctly, JIT can lead to dramatic
improvements in a manufacturing organization's return
on investment, quality, and efficiency.
 Lower stock holding means a reduction in storage space
which saves rent and insurance costs
 As stock is only obtained when it is needed, less working
capital is tied up in stock
 There is less likelihood of stock perishing, becoming
obsolete or out of date
 Avoids the build-up of unsold finished product that can
occur with sudden changes in demand.
 Less time is spent on checking and re-working the
product of others as the emphasis is on getting the work
right first time.
 There is little room for mistakes as minimal stock is
kept for re-working faulty product .
 Production is very reliant on suppliers and if stock is
not delivered on time, the whole production schedule
can be delayed.
 There is no spare finished product available to meet
unexpected orders, because all product is made to
meet actual orders – however, JIT is a very responsive
method of production.
Benchmarking –
Benchmarking is the
process of studying
and adapting the best
practices of other
organizations to
improve the firm's
own performance
and establish a point
of reference by which
other internal
performance can be
measured.
 Internal Study and Preliminary Competitive
Analysis
 Developing long-term commitment to the
Benchmarking Projects and Unite the
Benchmarking Team
 Identifying Benchmarking Partners
 Information Gathering and Sharing Methods
 Taking action to meet or exceed the benchmark
 Visit costs - This includes hotel rooms, travel costs,
meals, a token gift, and lost labor time.

 Time costs - Members of the benchmarking team will

be investing time in researching
problems, finding exceptional companies to
study, visits, and implementation.

 Benchmarking database costs -Organizations find it

is useful to create and maintain a database of best
practices
 Meaning - ISO is the acronym for the “International
Organization for Standardization” based in Geneva,
ISO is a network of the national standards institutes of
146 countries, on the basis of one member per
country, with a Central Secretariat in Geneva,
Switzerland, that coordinates the system.
 ISO Audit - A series of International Standards
emphasizes the importance of audits as a
management tool for monitoring and verifying the
effective implementation of an organization's quality or
environmental policy. Audits are also an essential part
of conformity assessment activities such as external
certification/registration and of supply chain evaluation
and surveillance