INSY 6808 – Lean Production – Auburn University | Kaizen | A Simple and Powerful Philosophy |

Justin Willette
11/16/2012
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Table of Contents

Introduction3

The Meaning of Kaizen3

History4

Goals of Kaizen4

Tools of Kaizen6

Implementing Kaizen7

An Example of Kaizen9

Other Applications11

Conclusion12

Bibliography13

INTRODUCTION
Kaizen is an idea with humble beginnings that has taken hold of the manufacturing world and grown to become a powerful tool that can be harnessed to become a dominate player in the industrial world. The philosophy of Kaizen is a simple idea. It aims to continually make small changes anywhere it can in a process in order to improve the overall process. Kaizen focuses on a few key concepts to create a lean manufacturing system. The Kaizen system includes many components such as quality circles, just-in-time delivery, 5S, kanban, and many more. These tools are utilized to implement Kaizen. The Kaizen philosophy has been applied to many different industries all around the world.

THE MEANING OF KAIZEN The Business Dictionary defines Kaizen as the “Japanese term for a gradual approach to ever higher standards in quality enhancement and waste reduction, through small but continual improvements involving everyone from the chief executive to the lowest level workers.” ("Kaizen") There are a few key phrases in this definition that truly illustrates the Kaizen way of thinking. First, this definition states that Kaizen is an approach to achieve “ever higher standards”. The Kaizen philosophy drives companies to work toward the highest standards. This means that manufacturing companies are striving to achieve zero defects, zero delays, perfect reliability, and perfect quality. While these metrics are impossible to achieve, Kaizen is always working toward these standards.
“Small but continual improvements” is another key phrase in this definition. Kaizen does not require large innovative improvement projects, but rather small, common sense improvements that can be implemented quickly. These continual, small improvements really make a difference over a long period of time.
The last part of this definition states that Kaizen involves “everyone from the chief executive to the lowest level workers.” In order for Kaizen to be effective in a company, everyone must buy in. Everyone working toward a common goal can be very powerful. Upper level management must understand this concept and encourage all levels of employees to actively participate in Kaizen activities. Many time lower level employees have a greater feel for the actual work being done, and they may have some of the best improvement ideas in the company. This definition is a good start to understanding Kaizen, but there is much more to Kaizen than a simple definition.

HISTORY
In order to fully understand anything, its history must first be known. Kaizen is no exception. The history of Kaizen begins just after World War II in Japan. The Toyota Company is where Kaizen got its roots. After the war, Japan was rebuilding its industries. Toyota sent Taiichi Ohno to the United States to study American manufacturing processes. Upon his return, Ohno made an unexpected suggestion. He believed that the American car manufacturers, such as Ford and General Motors, had excessive waste and were extremely inefficient in their manufacturing process. Ohno was impressed by one American market though, the grocery stores. Grocery stores employed a minimum inventory philosophy. (“Transportation Science”)
After Taiichi Ohno’s recommendations, Toyota began developing the Toyota Production System. They began developing this system by implementing quality circles, just-in-time deliveries, and kanban. All of these are tools of Kaizen. Kaizen began spreading around the world in 1986 when Masaaki Imai made it famous through his book, Kaizen: The Key to Japan's Competitive Success. This book was translated into fourteen languages and gained Kaizen gained worldwide popularity in industry. (“Kaizen History”) The Toyota Production System eventually became wildly successful and even challenged some of the major American auto manufacturers. The Toyota Production System has become what is now recognized as lean manufacturing. Lean manufacturing has changed the manufacturing world since its beginnings at Toyota.

GOALS OF KAIZEN Kaizen focuses on a few key areas of improvement. The first goal of Kaizen is the elimination of waste. (“The Kaizen Method”) Waste is a very general term. It is defined as non-value added work. There are many different types of waste. Waste can be wasted motion, defects, waiting, over processing, unnecessary transportation, excess inventory, or over productions. Each of these wastes causes inefficiency in a workplace, and they can all be improved. Taiichi Ohno believed that over production is the worst of all these wastes, and he spent great effort to eliminate over production. Another focus of Kaizen is standardization. Standardization requires collecting and recording data. Standardization involves defining the current state, finding the best practices, documenting these best practices, and ensuring that each employee follows these practices. (“Standardized Work”) One important aspect of standardization is the baseline metric that it gives the company. Improvement requires that there is something to compare. Once improvement is made, a new standard should be set. Without new standardization, the improvement will not sustain. The work process will revert to the last documented standardization. Improving quality is the last major area of focus of Kaizen. Improving quality can be achieved through much of the same methods as the previous areas of focus of Kaizen: identifying problems and implementing small, continuous improvements to increase the standard of quality. A couple of tools that are utilized to improve quality are single minute exchange of die and poke yoke. Single minute exchange of die refers to the changeover time between batches of products. This can improve quality due to the fact that there is less work in process and less inventory in the system that is subject to quality issues. Poke yoke refers to error proofing strategies in the production process. Murphy’s Law states that anything that can go wrong will go wrong. This is the reason for poke yoke. Not physically allowing the worker to make a mistake is the best way to ensure defective products will not be produced. This greatly enhances the quality of the product. (“Kaizen Tools”)

TOOLS OF KAIZEN
Some of the tools of Kaizen have been mentioned previously. Kaizen is a philosophy and carrying out this philosophy requires certain tools. A few of these tools include value stream mapping, fishbone diagram, pareto analysis, line balancing and 5S. (Thakur, and Edwards) All of these tools work together, but each has its own unique method to identify problems, improve processes, or eliminate waste.
Value stream mapping is an important tool in the improvement process. A value stream is defined as all the actions required to bring a product through the main flows essential to every product from raw material to the arms of the customer. There are two different types of value stream mapping: current-state map and future-state map. The current-state map is an analysis of the current production situation. The map allows one to see the overall flow of the product through the entire process from the raw material coming into the plant to the delivery of the finished product. Analyzing the current production situation allows the management to identify problems. The current-state map can show bottlenecks in the production system where improvements can be made. Once the current-state is analyzed, improvements need to be made. The next step is to develop a future-state map. This future-state map is a proposed production chain with continuous flow and less waste. The future-state map is only a plan. This plan should have the ability to become reality within a short time frame. These maps are a great way to understand the current process, identify where waste exists, propose a plan to improve the process, and execute that plan (Rother and Shook).
Pareto analysis and fishbone diagrams are another way to identify problems. Pareto charts are frequency bar graphs that are arranged in order of most frequent to least frequent. Dr. Joseph Juran, known as the father of quality control, developed the “Pareto Principle” which states that about 80% of the effects come from 20% of the causes. (Rouse) The pareto chart will show what vital few parts of the process cause most of the problems. This is extremely valuable information. Improving just a few parts of the process may be able to solve most of the problems. This analysis will show management what areas need the most attention. Fishbone diagrams can accompany pareto analysis. Once the problems in the process are identified, the fishbone diagram can be used to determine the root cause of the problem. Understanding the root cause of the problem can eliminate the problem permanently rather than treating the symptoms of the problem. The fishbone diagram is best utilized when the problem is identified but the cause has not been isolated. This analysis finds possible reasons that led to the problem. Each of these reasons is then broken down into contributing factors. Finally there is a list of many possible causes to the problem and a more complete picture to fully understand the problem. (Thakur, and Edwards) Understanding the problem is the first step to eliminating it all together.
The purpose of line balancing is to match the production rate after all wastes have been removed to the takt time at each process of the value stream. (“Line Balancing”) Line balancing is equalizing the work load across all processes in a cell in order to utilize each workers full potential and run the process as efficiently as possible. Line balancing will remove wastes such as wait time, bottlenecks, and excess inventory and work in process. Line balancing is a simple way to improve the process. It can combine processes, split processes, or reduce process time by removing non-value added work. All of these improvements make the process more efficient by removing unnecessary waste.
One more Kaizen tool that will be discussed is the 5S program. The 5S program focuses on having visual order, organization, cleanliness and standardization. (“What is 5S?”) This program will allow management and other workers of any abnormalities in the process. The 5 S’s represent sort, set in order, shine, standardize, and sustain. Each of these components of the 5S program has a specific job, but they all work together to improved profitability, efficiency, service and safety. (“What is 5S?”) The 5S program requires all workers to be committed to the program. Management must set the example at the top for this program to be effective. Once this program is sustaining at the top level it can be extremely effective at eliminating waste and increasing efficiency.

IMPLEMENTING KAIZEN
Kaizen has been working in Japanese companies for quite some time now. The Japanese culture is well suited for implementing Kaizen. Kaizen is a culture. Japanese culture has a strong sense of family and team. This is vital to Kaizen. Every employee must believe and participate in Kaizen because they actually want to, not because they are told they must by management. Each employee must understand that Kaizen is good for the company, good for their fellow workers, and good for themselves. (“The Kaizen Method”)
American culture is slightly different. There is more separation between lower level employees and management. American industry was a leader worldwide in mass production beginning with Henry Ford’s Model T’s. The American industry always had an attitude of “if it ain't broke, don't fix it”, but this is not the Kaizen way. (Hudgik) Change can be very difficult, especially when trying to change a culture, but it may be necessary.
The most important areas to focus on when beginning to implement Kaizen in a company are communication, employee training, and involvement by management. (“Getting Started”) One of the most important elements of communication is employee suggestions. Suggestions are a vital component in Kaizen. Lower level workers usually have the most valuable suggestions due to the fact that they most closely work with the products and have the most experience in the process. Suggestions should be encouraged throughout the entire company. It is important for these suggestions to be visible. An employee must know that his suggestion is valued or that employee will not make any future suggestions. There must be a method for gathering, evaluating, and implementing the suggestions. There should also be a method for an employee to see the status of his suggestion. Lower level employees should be encouraged to communicate to management through suggestions, and management should have a method in place to communicate back down the ladder to the lower level employees. This will help install a Kaizen philosophy into a company.
Another important factor in implementing Kaizen is employee training. New hires coming into the company must learn early that Kaizen is an important factor to the success of the company. In order Kaizen to work, every employee must participate. Employees should be trained in all the tools of Kaizen that have been discussed previously. They should also have some kind of training in teamwork and communication since these are two very important factors in implementing Kaizen. Employees need to have a firm grasp on their training in order for Kaizen to be utilized to its maximum capabilities.
Kaizen requires commitment at every level of the organization. Implementing Kaizen begins at the highest level of management. Management must lead by example or Kaizen will fail. Good practice includes a manager to spend time on the ground floor with employees to help and encourage them to make suggestions. (“The Kaizen Method”) This time spent on the floor gives management greater insight into the production process. They will have the capacity to understand and solve problems better.
Kaizen defines a role for every type of employee of a company from top management to low level workers. The duties of the highest level management include being determined to instill Kaizen as a corporate strategy, allocating resources to support Kaizen, and building procedures conducive to Kaizen. The next step down is the middle management and staff. Their responsibilities include deploying and implementing Kaizen goals, using Kaizen in as many capabilities as possible, and developing training programs to make employees Kaizen conscious. The next group is the supervisors. They are much closer to the workers and have a great influence on them which directly impacts Kaizen’s success. Supervisors must introduce discipline on the work floor, formulate plans for Kaizen, improve communication with workers, and support small group activities. The last line between the company and the costumers is the workers. The Kaizen process really depends on them. They are tasked to participate in Kaizen, practice discipline on the work floor, and engage in continuous self-development. Every single person must fulfill their role in order for Kaizen to be implemented to its absolute maximum potential. (“The Kaizen Method”)

AN EXAMPLE OF KAIZEN The first compact disc manufacturing facility in the United States in Terre Haute, Indiana, owed by Sony, transformed its manufacturing process using the principles of Kaizen. This CD manufacturing facility was producing 369 products per man hour using 13 operators. Only one year later, the same facility was producing 2,715 products per man hour using only three operators. (Mitchell, and Fairbanks) Kaizen was responsible for this drastic improvement. This facility was committed to Kaizen, used Kaizen tools, and involved all employees to achieve their new, improved standards. To begin this process a team of 17 employees, ranging in roles from the plant director of production operations to packaging operators, got together to analyze the production process and identify problems or potential areas of improvement. The team developed a list of 34 steps that could be improved. Involving many different employees with varying roles in the company is an important part of Kaizen. A good Kaizen policy is to gather information from all parts of the process. Next the team brainstormed possible solutions to each of these items and the best solution was selected. Each solution was then separated into two categories: low cost, quick fixes and engineering improvements.
Within a few days, the low cost, quick fixes improvements were implemented into the production process. A few of the simple fixes included relocating the emergency stop, adding rollers to prevent jams, adding a quick-change tape head, and reconfiguring the workstation height to eliminate reaching. The objective was to make the process more efficient and the job easier for the operators as quickly as possible without investing much money. Kaizen preaches small but continual improvement. Kaizen does not need to produce a 100% solution to all the problems at one time. It is better to produce a 60% solution that can be accomplished in one week with the intent of improving the process further in the future with more difficult improvement projects. (“The Kaizen Method”) With these simple and quick improvements, this Sony CD manufacturing facility improved its production to 1,240 products per man hour up from 369. The facility also managed to decrease the number of operators required to produce these CD’s from 13 to seven.
Within eight months the engineering improvements were implemented. These improvements required much more time and effort but also had a great impact on the production level of the facility. These improvements included adding some automation to the process and adding a new, standardized labeling system. These engineering improvements increased the production of the manufacturing facility to 2,311 products per man hour up from 1,240, and they also were able to decrease the number of operator required to produce those products from seven to four.
Even this was not the end to the improvement of this production line. Another improvement that was implemented was a robotic palletizer and master carton loader which again increased throughput. The production was increased to 2,715 products per man hour. Moreover, these products were produced with only three employees. The increase in throughput was an important part of this final improvement, but another benefit was the issues this automation solved involved with operators constantly being required to bend down. Kaizen also involves sustaining employee morale at a high level. Although this facility was able to decrease the required number of operator to run its production line from 13 to three, no employee was laid off. Kaizen improves the morale of employees by removing the grind of the work and developing pride in seeing individual ideas implemented. During the entire Kaizen process at this manufacturing facility, all the improvement projects were documented on story boards to tell the specific story of each individual continuous improvement project and to give credit to the employees that participated in implementing the project. These story boards were displayed near the line and updated periodically. Happy employees are more efficient and have a greater sense of pride in their work. (Mitchell, and Fairbanks)
Much can be learned from this simple example. This facility proves that Kaizen can make a great difference in any manufacturing facility anywhere in the world if it is implemented correctly. There are only a few concepts that are required to implement a successful Kaizen philosophy in a company: commitment from the top management, teamwork, participation of every employee, and a good plan.

OTHER APPLICATIONS Kaizen is mostly associated with the manufacturing industry because that is where it was created. The Toyota Company in Japan came up with this innovative philosophy and perfected it to become an exceptionally efficient and powerful company. Although Kaizen gained its popularity through the manufacturing industry, it is simply an idea or philosophy that has the opportunity to be adopted into many other areas. Other areas that Kaizen has been applied include business, healthcare, education, and one’s own life. Business is a natural arena in which Kaizen can excel. Business requires companies to continually grow and improve in order to remain profitable and compete in the market. Remaining stagnant will most certainly lead to a failed business. Many businesses have adopted many Kaizen principles in order to stay in business. One of the most common Kaizen principles businesses have adopted is the suggestion system. Businesses will encourage suggestions and actively implement them. This leads to higher employee morale and a better business. Another application of the Kaizen philosophy has taken place in the healthcare industry. Healthcare faces many problems such as staff shortages, increased demand, and major stress on employees. Healthcare requires many complex processes with many different people involved and much documentation needed. Kaizen and lean principles can have a great impact on this system. Slowly making small improvements to this difficult process through teamwork from everyone involved can make a big difference. With Kaizen implemented, the complex processes can be standardized and wasted can be removed from the system. The stresses will be lightened on the healthcare professionals, and they can focus on applying their skills to saving people’s lives. Everyone from patients to doctors to the hospital janitorial staff will be able to see the difference Kaizen can make. (“Healthcare and Lean”) Kaizen is making its way into the classroom as well. At Mt. Edgecumbe in Sitka, Alaska, Kaizen is being employed to improve schooling. At this school the teachers and students are regarded as co-managers. They must communicate well as they set their targets and goals, individually and collectively. The first week of each school year is dedicated to building self-esteem and quality training. Each student at this school sets very high improvement goals. They are taught to reach these goals using a Kaizen philosophy. The students at this school have shown impressive test scores and graduation rates. (Vos and Dryden) The simplest area that Kaizen can be applied is in one’s own life. Kaizen is a simple, yet powerful philosophy. It can create great improvement though small steps. Trying to achieve an important and lofty goal is best done through the Kaizen approach of small improvements over time. This can be done on a personal level no matter the goal: losing weight, earning a college degree, or running a marathon. Employing Kaizen will allow anyone to reach any goal they may have.

CONCLUSION At the heart of it, Kaizen is simple. In order to make great change, one must start by making small change. Improving should never end. One should try to achieve higher and higher standards always. This simple idea that began about 60 years ago has become a way of life in many companies, businesses, schools, and even people.
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