Post on 05-May-2018
9/10/2013
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“KAIZEN FROM START TO FINISH?”Vinay Goyal
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Disclaimer
• This presentation has nothing to with my current employer and its internal practices.
• I will try to avoid sharing names and internal practices of my previous companies during my presentations (unless they no longer exist)• All of the companies I worked for or with were successful
companies in their respective fields
• A copy of this presentation will be posted on Section website• Part I is already presented on
section website• http://asqorangeempire.org/
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Presentation Outline
• Due to the nature of the topic:• This is a Three part Presentation
• Part I:• What is Kaizen?
• What are the key definitions, terminologies that are commonly used with Kaizen?
• Part II:• Kaizen Planning
• Management Support
• Team Building
• Implementation
• Part III:• Reporting
• Celebration
• On-going sustaining and future Kaizen Planning
• Q & A
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Those who have been part of the Kaizen• This is an interactive session
• Please feel free to share your success (or “failure” ) story• If you have any questions, please feel free to discuss, email me at
vinaygoyal@sbcglobal.net• If I do not know the answer, I will get back to you.
• Last session in October will be a Q&A session
• Those who are new to Kaizen• Please feel free to ask questions
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Quick Review
• Kaizen (改善)• The Japanese – Kanji - word "kaizen" simply means "good
change” or English word “improvement”• No inherent meaning of either
• “Continuous" or “Philosophy”
• It can be: One-time, On-going, Large or Small
• It is a combination of • Philosophy and (Kaizen) Related measuring methods
• Often it may look like a common sense but that too comes with• Exposure
• Experience
• Listening
• Sharing
• Discussing
• Most importantly Be a Good Listener First and look from other’s perspective
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Quick Review
• Kaizen (改善)• There should not be any rank
• Leave your ego at the door
• Everybody has equal opportunity to speak
• No idea is a bad idea
• Intention is not to look for a perfect solution • Yes, if possible
• But look for a better and improved solutions
• Keep making it better in smaller increments
• We cannot do it alone, so bring people from cross functional areas and work on process improvement
• Good Changes have no boundaries
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Kaizen• Endless Pursuit of Waste Elimination
• A continuous improvement mindset
• Everything that we do today can be improved
• Kaizen has no end• So title Kaizen from Start to Finish
• Finish means a short break for celebration but it is a never ending process
• Kaizen is gradual approach to improvement • Other approach is Great Leap approach also known as Innovation
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Kaizen Innovation
Japan Strong Weak
West Weak Strong
3 MUs• Toyota Production System (TPS) picked three Mus
• Widely recognized as a reference to product improvement program
• Muda (Waste, Uselessness) • TIMWOOD:
• Transportation, Inventory Motion, Wait, Over-processing, Over-production, Defect
• Mura (Unevenness)• JIT system
• Keeping little or no inventory
• Supplying the production process • With the right part, At the right time, In the right amount, and First-in, first out
(FIFO) component flow.
• Muri (Overburden)• Putting employees or processes under unnecessary stress through
making unreasonable demands on them
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3 MUs
• Waste reduction is one of effective ways to increase profitability • Value:
• A process adds value by producing goods or providing a service that a customer will pay for
• Waste• A process consumes resources and when more resources are
consumed than are necessary to produce the goods or provide the service that the customer actually wants
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5 Ws and 1 HWHO
• Who does it?
• Who is doing it?
• Who should be doing it?
• Who else can do it?
• Who else should do it?
• Who is doing 3 MUs
WHEN
• When to do it?
• When is it done?
• When should it be done?
• What other time can it be done?
• What other time should it be done?
• Are there any time 3 MUs
WHAT
• What to do?
• What is being done?
• What should be done?
• What else can be done?
• What else should be done?
• What 3-MUs are being done? being done?
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5 Ws and 1 HWHERE
• Where to do it?
• Where is it done?
• Where should it be done?
• Where else can it be done?
• Where else should it be done?
• Where are 3 MUs being done
WHY
• Why does he do it?
• Why do it?
• Why do it there?
• Why do it then
• Why do it that way?
• Are there any 3-MUs in the way of thinking?
HOW
• How to do it?
• How is it done?
• How should it be done?
• Can this method be used in other areas?
• Is there any other way to do it?
• Are there any 3-MUs in the method?
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Innovation, Invention, Kaizen and Standardization• Invention
• 1 : The introduction of something new
• 2 : A new idea, method or device
An invention is useful only to the inventor unless it is offered to the public
• Innovation:• If the invention improves some product, process or service for the
public, then that invention transforms into an innovation. • New technological break through or new features that is incorporated
into a product, system and/or methodology to improve its usefulness
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Innovation, Invention, Kaizen and Standardization• Kaizen
• Improve existing system by systematically eliminating non-value added processes
• Standardization:• Maintaining Status quo
• Maintenance• Activities that are directed to maintaining current technological,
managerial and operating standards
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Innovation, Invention, Kaizen and Standardization
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• Management Maintenance Task:• Establish
• Policies• Rules• Directives• Procedures
• Monitor • They have been
followed• People are able to
follow but do not follow• Introduce
Discipline• People are unable to
follow• Take appropriate
actions• Training• Review and • Revise
Maintenance: By Management
Maintenance: By Workers
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Kaizen versus Innovation
• But the reality the actual progress achieved through innovation generally follows the pattern
• Why?: • Once a system is placed as result of innovation
• Deteriorate unless continuing efforts to• Maintain and Improve
• Supported by the ManagementIn
no
vati
on
Inn
ova
tio
n Inn
ova
tio
n Kaizen
Kaizen
Kaizen
It lacks the Kaizen strategy go along with it.
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Kaizen versus Innovation
• If standardization is just to maintain the status quo (existing status of affairs)
Inn
ova
tio
n
Inn
ova
tio
n Inn
ova
tio
n Standard
Standard
Standard
Inn
ova
tio
n
Inn
ova
tio
n Inn
ova
tio
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Kaizen efforts not only maintain the standards but also take them to new heights
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In the Innovative Society
• Economy is cyclic in nature• Goes Up and Down
• Management talks about Kaizen• When economy is slow
• When economy is good• Companies
• Often invest more resources than necessary to avoid any problems or excuses
• Forget about Kaizen thinking, approach, lessons learned from the past
• But if they mix Innovation with Kaizen• It will help in faster time to market and more reliable product
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Management Support
• Quality Starts From the Top• It trickles down from the Management
• Kaizen (improvement) efforts will fade away with the time if not supported by the management
• This is single most important thing in any organization for Kaizen efforts to be successful
• Management could be• The CEO, President, General Manager, Senior VP, VP
• Manager
• Supervisor
• Team Leader
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How to Get the Management Support
• Unless Senior Executives are aware of Kaizen benefits and believe in Kaizen Philosophy• Often it is a challenge
• Otherwise the burden of proof lies on you• To convince
• Justify proper support
• In order to get Management support for Kaizen• Use Kaizen approach
• What are the two key things about Kaizen?• Small increment(s)
• Supported by ROI
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How to Get the Management Support
• What is ROI?• ROI: Return On Investment
• Bottom Line Results
• ROI can be:• Savings
• Making processes more efficient• Often making process more efficient are not cost savings
• They improves• Customer (internal and external) satisfaction
• Quicker and faster response time,
• Employees Moral• Good work environment – Practically possible and realistic (Muri)
• Bottom line results = more business
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How to Get the Management Support
• Ultimately every improvement will be good for the bottom line ($$$)• Directly or Indirectly (sometimes it so transparent that people do
not give the due credit to Kaizen Team and Kaizen efforts)
• Never give up in believing that
• Everything that we do today can be improved
• Even if you do not get the support, keep improving whatever you can within your control and given resources
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How to Get the Management Support
• If you work hard and diligently• Will definitely help the employer (or your boss) but in the long term
it is going to help you
• You will be standing in front of your potential employer (or a big gathering) and speak up your achievements without any fabrication
• Always remember if you ever feel stuck in your professional career• That is not the end of the world
• But always remember grass is not greener on the other side of the fence• Every company has challenges that we need to learn how to over come
• Use Kaizen principles – how to do it
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How to Get the Management Support
• If you do right things and are better than most of the people• You will be recognized for your efforts Sooner or Later
• Display Manufacturer• Customer returns story – my first break through
• Contract Manufacturer • Process improvement – saved $15K ($180K) per year
• ISO and RoHS efforts• Be ready to take the challenges
• Linking Shop Floor Control to Company ERP system• Small budget to large budget
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Team Building
• Most if not all ASQ certification course covers this topic
• Team building and getting the right support is crucial for any project
• Personal matter/domestic matters• You are the CEO (sometimes)
• You are accountable to yourself
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Team Building
• Organization• You are accountable to people
• Above you and
• Below you
• As the organization grows • It becomes more complex, challenges grow
• Some of the challenges are:• Finding the right people
• Right support
• Timely support
• Changes – you may have to start all over again
• Training
• Conflict
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Team Building - Challenges
• Finding the right people• Big Organizations
• Typically support comes from Senior Executives
• If it is important for the business
• RoHS and ISO
• Executives once convinced, will ask what kind of resources you need• That is their job; they control the resources e.g. Money, Man Power and
Training
• You need to provide the plan, resources required and the road map with expected completion date(s)
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Team Building - Challenges
• Right support• Either you have to provide a plan or
• Executives will provide you
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Team Building - Challenges
• Timely support• Once you form the team
• You create a score card• Actions
• Achievements
• Results
• Challenges
• If someone is not cooperating• You have to escalate
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Team Building - Challenges
• Changes – you may have to start all over again• Certain people are going to change their positions
• New Hires
• People leaving the organization
• This is a constant challenge• Especially if there is a significant change in organization or re-
organization
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Team Building - Challenges
• Training• Training team members
• Re-training/Refresher
• Bringing new person up to the speed
• Change in plan and approach
• Outside help
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Team Building - Challenges
• Conflict• Conflict is one of the biggest challenge
• It comes because of the ego
• As a leader and team member• It is one of the most challenging thing to overcome
• Anytime there are more than one person• Conflict is obvious
• Conflict Resolution• Learn with experience
• Life time learning experience
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Team Building - Challenges• How to run the meetings
• Is an art• You cannot treat everybody with the same stick
• Tactful• Honest/Ethical
• Like in my case, I am not a public speaker
• Upfront• Build your credibility• Open communication (not never ending)• Be a good listener• Put yourself in other’s shoes – look from his/her perspective
• A very qualified person but with bad attitude is better than a person with good attitude and willing to learn
• It comes with experience
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Team Stages
• Most teams go through four development stages before they become productive:• Forming,
• Storming,
• Norming, and
• Performing.
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Types of Teams
• Working Teams• are basic to any organization are divided according to their function
and they perform ongoing tasks for any organization: Marketing teams, Human Resource teams, Finance Teams. They.
• Special Purpose Teams• are formed to fulfill a special purpose or a one time off project
• Usually, these teams are not permanent and they are usually disbanded once the purpose of the team is served.
• These teams include working committees for a particular event, or a committee that comes together to solve a particular problem
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Types of Teams• Multifunctional Teams (Typical Kaizen Team)
• Consist of members formed from different areas of expertise • Can be short of long term - depending on the nature of the
organization
• Self-Directed Teams• Self-Directed Teams do not have a clear leader. They have shared
leadership and share responsibility of their work. Example of music group – self improvement
• Self-directed teams are not very common in companies and big organizations due to lack of recognition and reward
• Management Teams• Management Teams are like board of directors of a company. While
there is a Chairman of the Board, the directors come together to deliberate on a matter
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Implementation
• My experience• Review the problem (challenge)
• Document every (at least key) activities
• Always have action items at the end of the meeting
• Distribute meeting minutes
• Monitor the progress
• Share with the team• Give them the due and fair credit
• Share with the management
• Be good in writing reports and presentations
• Do not write a book• Keep is clear, precise and concise – these days no body is has time to
read long reports, emails.
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Implementation
• From Kaizen’s perspective:• Always remember incremental (small steps)
• Best use the resources available to you
• Your vision should be to make it perfect and world class one day• But in gradual steps
• Think to work smarter than harder
• Make processes user friendly
• Remember Kano Model• Be a delighter
• It is not a one time improvement• Improvement = Innovation + Kaizen
• Kaizen – Sustain, Kaizen – Sustain…………
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Implementation
• Do not get discouraged with the people making sarcastic comments• Believe in educating yourself and your team members
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• Last month I mentioned how section financials changed • From losing $1500 ($18,000) per year to positive cash flow
between 2007-2009
• Did not increase the dinner meeting registrations fee• Kept is at $30.00
• Heavily subsidizing• Dinner meetings, Quality Day and December Social
• Discounts for refresher courses for unemployed and students
• Better gifts/compensation for speakers, instructors
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Kaizen Activities at ASQ 0701
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• Kaizen Activity 2:• One day we have had over 90 people
• Parking was an issue
• People were coming late
• Long line at the registration desk
• Registration people as well as members were going through “Muri”
• We figured out that it was not acceptable• We decided to look for a better option
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Kaizen Activities at ASQ 0701
• Parking and Long Line• Parking – we worked with the hotel
• They offered Valet parking in case the parking lot was full at some reasonable price
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Kaizen Activities at ASQ 0701
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• Long Line• We started looking for event management program/tools
• We came across an event Management tool “Cvent”
• We figured out the using Cvent members can register on-line in less than a few minutes
• We can monitor from the back-end who has opened and responded the invitation
• Send the reminder who has not opened or responded
• Opt-out option
• Avoid excessive cash/check handling• We are not professional accountants
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Kaizen Activities at ASQ 0701
• Long Line• Cons:
• About $6000 per year ($500 per month) expense for everything
• Some people were not comfortable giving their credit card information
• Who is going to do the set up (time consuming)
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Kaizen Activities at ASQ 0701
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• Long Line• Pros:
• You can easily find the invitation email in your email box or registration links from section website, find out the topics/speakers of upcoming event
• Instant on-line registration from anywhere in the world• Shorter lines, waiting, motion
• Print badges• Direct deposit in Bank Account
• Lesser cash/check handling
• Greater visibility for expected members attending the event• Inform hotel ahead of time for food, seating (+/- 10%)
• Early bird and other discounts• Registration not only for the dinner meetings but all educational courses• 4 Meals choices (Chicken, Beef, Fish and Vegetarian)
• Beef – Please thank Luke Foo for his great recommendation
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Kaizen Activities at ASQ 0701
• Benefits• Our section dinner meeting attendance grew by 30%
• From 40-50 to 60-90 members per month
• Our educational courses started having about 100 students per quarter in all available refresher courses
• Cost of subsidizing has gone down• Fixed cost has gone down (Room, Microphone, Screens etc.)
• Our database grew from paid members to all who wanted to be on the distribution list• 1200-1300 paying members;
• 3000 non-paying members but would like to be notified (willing to pay higher price to attend an event as non-member)
• No served dinner option for paid members ($0) and non-members ($10)
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Kaizen Activities at ASQ 0701
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• Using Cvent• We started doing Annual Member Satisfaction Survey
• Improved response rate to >10%• Hardcopy response was 5 max (less than 1%)
• ASQ World Conference• Volunteer Registration (over 70 Volunteers for the week long events)
• Training
• In terms of ROI:• With less than $5:00 per member per year
• Improved – efficiency • Registration (both for members and LC team), - happy customer
• Cost• Increased attendance helped in reducing cost and investing savings for our
membership (subsidizing the events)
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Kaizen Activities at ASQ 0701
Kaizen
• What is this?• This is what Kaizen is all about
• Bad part is, it is so transparent, often people do not appreciate the improvements taking place behind the scene
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Kaizen• Please congratulate any Leadership committee member you
see or meet for all the hard work they put to make it happen• Dave Nagy
• Bob Mehta
• Luke Foo
• Of course one more• That’s me.
• Other new leaders to Kaizen and Sustaining it
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Ed Matthews Don Shannon Anet Ant Briana Sallows Laurie Patton
Steve Martin Stan Smith Mark Lindsey Jay Mehta
Next Month
• Part III:• Reporting
• Celebration
• On-going sustaining and future Kaizen Planning
• Q & A
• More Kaizen related stories
If you have any questions, please email me at vinaygoyal@sbcglobal.net
In the subject: please type Kaizen
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SINGLE PIECE MANUFACTURING500 minutes versus 104 minute example:
500 minutes = 1.2 days (based on 7 hours production hours)
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SMT Reflow AOI
Current State of the Process
Stuffing & Wave
SolderingTest
Inspection, Rework
and Wash
Inspection, Rework
and Wash
Inspection, Rework
and Wash
QA
Inspection, Rework
and Wash
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SMT Reflow AOI
Batch Mode (Island Approach)
Stuffing & Wave
SolderingTest QA
100 100 100 100 100
1 1 1 1 1
100 200 300 400 500
SMT Reflow AOI
Single Piece Continuous Mode
Stuffing & Wave
SolderingTest QA
100 100 100 100 100
1 1 1 1 1
1 2 3 4 5
99
+
Total 104 Minutes
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Advantages
Real time feedbackBetter First Pass YieldShorter processing timeLesser HandlingLesser Handling related damagesQuicker turn around timeLittle/no slack timeLess Manpower/ResourcesLesser storage space
Efficiency improvement
500 minutes versus
104 minutes
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Challenges
Line Balancing
Documentation / Design Review
Tighter up front controls
Real time corrective actions
Prior prepping of partsBetter prepping instructions
Disadvantages
?