Kaizen Event

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Kaizen Event
LT6 Training Module
Young Electric Sign Company
Special thanks to Superfactory for their
contribution to this presentation
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What to Expect Today.

• Discussion 45 minutes
• Break 5 minutes
• Discussion 40 minutes
• Will understand what a Kaizen event is
• Will be able to plan and carry out a Kaizen event
• Will understand the benefits, the why
• Will understand those pitfalls to avoid
• What are your expectations?

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Background and History

• Kaizen (Kyzen)
• Kai means change
• zen means good (for the better)
• Gradual, orderly, and continuous improvement
• Ongoing improvement involving everyone
• Modern Kaizen is based on the principles of the
  Toyota Production System (TPS).
• TPS is a system used in repetitive manufacturing,
  but the philosophy can be applied to all
  operations.
• Companies in the United States began to use the
  term following the publication of Kaizen by
  Masaaki Imai in 1985.

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Components and Implementation

• Selecting Projects
• Setting Goals
• The Team and Team Leader
• Setting the Stage
• The Kaizen Blitz
• Potential Roadblocks
• Kaizen Steps
• Set the scene
• Observe the current process
• Develop the future state process
• Implement the new process
• Report and Analyze

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How to Select a Kaizen Project

• Desirable criteria for initial projects
• Easily measured
• Management shows enthusiasm
• A clear business need
• Highly visible process
• Easier project
• Strong environment for follow-up
• Simple process
• Stable and repeatable process
• Allows contribution by all employees not just a
  technical exercise
• Self-contained process

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Types of Kaizen Projects

• Productivity improvements
• Typical goal improve productivity by 30
• Changeover or setup time improvements
• Typical goal reduce setup time by 90
• One piece flow/Pull Systems
• Typical goal reduce inventory by 50
• Any process that needs to be improved
• Remember, everything we do is a process, and
  every process can be improved

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Setting Goals

• Goals from previous slide may seem high, but
• Set goals high
• To challenge the team to think out of the box
• Try radically different approaches

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The Team

• Team LEADER
• Typically not the supervisor
• Preferably has experience with the kaizen process
• Should be biased toward change
• Be open-minded

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The Team

• Team MEMBERS
• 3 to 10 people (including Team lead)
• From across all levels and functions impacted by
  the project
• Include experts if they have open minds
• Include people with prior kaizen experience
• Include outsiders from unrelated functions to
  obtain different points of view
• Dumb questions often stimulate innovative
  thinking

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Setting the Stage - What

• Eliminate interruptions for team members
• No cell phones
• No visitors
• Dedicated conference room
• Eat together
• Supplies
• Flip charts
• White board
• Snacks
• Management support
• Team members need full support of management
• Responsibilities are covered to eliminate
  interruptions during event

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Setting the Stage - Where

• Conference room can be used for analysis,
  discussion, introductions, etc
• Important to go to the gemba
• Gemba where the process actually occurs
• Kaizen can happen right on the factory floor,
  information should be gathered at the gemba
• Dont be afraid of going back to the floor to
  challenge and test ideas

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The Event Kaizen Blitz

• Total focus on a defined process to create
  improvement in a short period of time
• Dramatic improvements in productivity, quality,
  delivery, lead-time, set-up time, space
  utilization, work in process, workplace
  organization
• Typically one to five days long

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Kaizen Rules

• Be open to change
• Everyone involved
• Stay positive
• Speak out if you disagree
• See waste as an opportunity
• No blame environment
• Treat others as you want to be treated
• Ask the silly questions, challenge the givens
• Creativity before capital
• Understand the data and principles
• Just do it!

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Avoid.

• We already know the answer, wasting time to
  gather data
• A good idea but the timing is premature
• Cant do, not in the budget
• That may work on paper, but not in reality
• It may work elsewhere, but it wont work here
• Doesnt match corporate policy
• Ill do it my way when everyone looks the other
  way.
• Fear of accountability stops progress
• Isnt there an even better way?

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Sample Agenda

• PLAN
• Day 1 Setting the scene
• Meet the team, identify stakeholders customers,
  scope, train if necessary
• Day 2 Observe the current process
• Flowchart, VSM, identify waste, identify root
  causes
• Day 3 Develop the future state process
• Brainstorm and flowchart (typically the longest
  day!)
• DO
• Day 4 Implement the new process
• Plan, communicate, implement, modify
• CHECK, ACT
• Day 5 Report, analyze
• Performance VS expectations
• Act upon what has been learned Standardize or
  back to the drawing board

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Day 1

• SET THE SCENE
• Stakeholders Customers
• Those sanctioning the event
• Those who might be impacted by decisions made by
  the team
• What Does Done Look Like?
• Write a statement that expresses 1) The work to
  be done 2) The time frame to be done in 3)
  The expenses or resources consumed
• Team consensus on triple constraints
• Allow Stakeholders and Customers to approve
• Train
• Provide training on team and Kaizen etiquette,
  how the event will proceed

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Day 1

• Understanding your customer!
• Value added is always determined from the
  customers perspective.
• Who is the customer?
• Every process should be focused on adding value
  to the customer.
• Anything that does not add value is waste.
• Some non-valued added activity may be impossible
  to eliminate or reduce(N-NVA)
• Regulatory
• Legal
• Cant eliminate right now

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Day 2

• Observe Current Process!
• Crucial first step in process improvement
• Deep understanding of the existing processes and
  dependencies
• Observe the process first hand
• Value Stream map the process

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Day 2

• Observe Current Process!
• Take measurements time, yield, travel distance
• Identify Value Added (VA), Necessary Non-Value
  Added (N-NVA), and Non-Value Added (NVA)
• A process either Adds Value, or is Waste

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Day 2

• Identify Waste!
• Anytime we are not doing all three of these.
• Physically modifying raw materials
• In a way the customer wants, and
• Its done right the first time.
• Where to find waste?
• Defects
• Overproduction
• Waiting
• Non-utilized talent
• Transportation
• Inventory
• Motion
• Extra processing

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Day 2

• Identify Root Causes!
• Flow Charts
• Cause and Effect Diagrams
• Check Sheets
• Histograms
• Pareto Charts
• Scatter Diagram
• Control Charts
• Fishbone Daigrams

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Day 3

• Brainstorm Improvements
• Team brainstorms to develop new process
• Post improvement ideas on map or by category
• Workflow
• Technology
• People / Organization
• Procedures
• Develop detailed future state (VSM, Equipment,
  Training)
• New workflow
• Value Add and Non-Value Add
• Cycle times
• Identify Kaizen bursts (immediate radical
  change)

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Day 3

• Things To Consider
• Think global / systems optimization
• Maximum impact to process
• Speed of implementation create small victories
• Cost-benefit analysis
• Will new skill sets be required, and how to
  achieve them?
• Is the current organization structure sufficient?
• Are there cultural issues?
• Is there potential for push back?
• Any implications for suppliers?
• Implications for customers?
• Implications for team members?
• Do current technologies support the new process?
  Are they available and cost justifiable?
• Technology is an enabler, not a solution.
• Does the reward system support the new process?
• What can be done to accommodate any of these?

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Day 3

• Plan steps to New Process
• Plan
• What specific changes need to occur
• In what sequence
• Resources needed get commitment
• Impact on existing activities and functions
• Responsibilities
• Communicate
• Who, what, when

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Day 4

• Execute The Plan
• Develop a concise, achievable milestone plan
• Communicate the plan to everyone
• Suppliers
• Team members
• Stakeholders Customers
• Track activities in public
• Celebrate small victories and publicly analyze
  failures
• If modifications to the plan are necessary, make
  sure to communicate to team members,
  stakeholders, and customers.
• Meet regularly (weekly?) to review status of open
  implementation items

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Day 5

• Report and Analyze
• Report results on a public Kaizen Board
• Compare actual results with expected
• What can be learned?
• What are the next steps to take?
• Standardize the positive
• Share what was learned with others that may find
  the information useful
• Are there more opportunities for improvement
  still on the table? If so, repeat PDCA through
  additional Kaizen events.
• Celebrate!

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End of Presentation

• Questions

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Quick Reference Sheet Kaizen Event

• Kaizen (Kyzen) Defined Gradual, orderly,
  continuous improvement. Can be applied to ALL
  processes, Involves EVERYONE
• Kaizen Blitz 1 to 5 day rapid, focused, intense
  Kaizen event

• Agenda (Plan, Do Check, Act) (PDCA)
• Day 1 Set The Scene
• Stakeholders Customers, Scope, Training,
  Understand your customer (Voice of the Customer)
  to understand VALUE
• Value Added, Non-Value Added, Necessary Non-Value
  Added.
• Waste Vs Value Added
• Where to find Waste (D.O.W.N.T.I.M.E.)
• Day 2 Observe Current Process
• create current stateVSM, gather data, watch for
  VA, NVA and NNVA, find root causes of waste.
• Day 3 Develop Future State, Prepare PLAN
• Brainstorm improvements to process
• Create future state VSM
• Develop written plan to go from current to future
  state
• Include dates and responsibilities
• Use Gantt chart or other method to track
  progress, display publicly
• Day 4 Execute
• Publicly display plan and progress
• Highlight milestones
• Hold follow up meetings as necessary (planned)
• Communicate progress to stakeholders, customers,
  and team members

PLAN
Select Project Start with a project that is
easily measured and management shows enthusiasm
for, has a good business case, and will allow the
involvement of many. Initially avoid processes
that are out of control, are seen as not needing
improvement, or are dependent on other processes.
Gain experience before tackling difficult
processes
Set Goals Set high goals for the team to
achieve, typical results include Productivity
Improved by 30 Setup reduced by 90 Inventory
reduced by 50
DO
The Team Leader is experienced, is inclined
toward action, is open minded. Members (2 to 9
additional) have an interest, are subject matter
experts, can be from outside the area of impact
to ask dumb questions. Remember Team Etiquette
Set the Stage Know What Done Looks Like,
Eliminate Interruptions, have supplies ready,
make sure you have managements support for
event. Prepare conference room, be prepared to
go to Gemba.
Check Act

• Kaizen Rules Be open to change, everyone
  involved, stay positive, speak out if you
  disagree, see waste as an opportunity, no blame
  environment, treat others as you want to be
  treated, ask the silly questions, challenge the
  givens, creativity before capital, understand the
  data and principles, Just do it!
• AVOID Cant Because. Wont work here, no need
  to study, already know the answers, going to do
  my way anyway.