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Operational Excellence Kaizen Program Management

Operational Excellence Kaizen Program Management

WHAT IS KAIZEN?

The Secret of Successful Companies;
KAIZEN = Continuous change for the better

The transition from divided markets to a global market has brought fierce competition, requiring companies to offer high quality at low cost while rapidly developing customer-focused products and services. Successful companies today have not settled for the status quo but have survived by anticipating these changes through continuous improvement activities. During this process, Japanese companies, as well as all other successful companies, have adopted and implemented the Kaizen philosophy.

What is Kaizen?

Kaizen is a combination of the Japanese words kai (change) and zen (better). Together, they mean "change for the better," or in other words, "continuous improvement." It is a life philosophy that focuses on change, continuously improving every aspect of life—home, work, personal, and social—through small steps.

Settling for the current situation is the main enemy of Kaizen.
It conveys the message that people should always strive for change and improvement.
Kaizen is a philosophy that leads people to success in all areas of life through small but confident steps.

KAIZEN AND STANDARDIZATION

What is a standard?

In its dictionary definition, a standard is defined as “something that conforms to specific measures, laws, or usage, and can be taken as an example or basis, uniform.” In the sense that concerns us, a standard refers to policies, rules, procedures, and instructions prepared by management to ensure that employees repeat their work correctly and reliably. Additionally, technical specifications used to define the features of products, machinery, and materials are also considered standards.

The standards used in businesses:

  • Allow us to know what we are dealing with and understand the current situation,
  • Ensure that operations are repeated correctly and reliably,
  • Measure the time and load of operations and determine how tasks will be distributed,
  • Help identify and understand losses, abnormalities, fluctuations, potential issues, and problems,
  • Ensure that the achieved level is maintained,
  • Facilitate the sharing of information between departments,
  • Enable proper organization,
  • Ensure the transfer of individual expertise to the organization,
  • Allow gains to accumulate within the company and maintain discipline,
  • Facilitate the transfer of experiences to future generations.

Kaizen technique means developing and maintaining through small, gradual improvements. Kaizen is a constant challenge to existing standards.
Standards exist only to be replaced by better ones. Permanent improvement can only be mentioned when the next task is carried out according to the new standard. Standardization also ensures that the gains achieved through improvement spread throughout the company. Kaizen has not reached its goal until this spread occurs. Improving standards means creating more advanced ones. Continuous improvement can only be achieved when better standards are established. Therefore, Kaizen practitioners believe that standards are temporary by nature and view them as stepping stones used to move from one to another through ongoing improvement efforts.


If standards cannot be implemented by employees and the actual situation is different, they should be revised. If they are not being followed, management should take the necessary measures to ensure discipline.
Standards apply to everyone, and it is management's responsibility to ensure that everyone works in accordance with them. This is called 'discipline.'

 

KAIZEN AND INNOVATION

When we look at improvement methods in companies, we see two different approaches: one is gradual progress (Kaizen), and the other is progress that occurs suddenly in a single big step (innovation).
Kaizen involves developing and maintaining business standards through small, gradual improvements. Innovation, on the other hand, involves making substantial financial investments in new technologies or tools, resulting in a significant leap in the current state. This change is not Kaizen.

KaizenInnovation
Human-focusedTechnology and money-focused
Participation of everyoneLimited participation
Small investments, intense effort towards preservationLarge investments, less effort towards preservation
Continuous and regularIntermittent, irregular development
Preservation and improvementScrapping and repurchasing
Gradual, permanentSudden, temporary
In slow-developing economiesIn fast-developing economies
 

Kaizen does not exclude innovation; in fact, Kaizen and innovation complement each other at a certain point. Kaizen strives to maximize benefit by improving the current state. However, over time, this state may no longer be sufficient for the conditions of the day, at which point attention should turn to innovation. In today’s competitive environment, the cost of using the latest technology may be high, but so is the cost of not applying advanced management techniques. If a company is to continue existing, it needs both Kaizen and innovation.

 

KAIZEN, PROCESS, AND OUTCOME

Kaizen prioritizes process because good outcomes depend on good processes. Process-oriented thinking bridges the gap between processes and outcomes, goals and tools, and targets and measures, allowing people to view the whole picture without bias.

For example;
Quality control began with inspecting finished products, but improvement in quality cannot be achieved by inspection alone. Quality can only be achieved by improving production processes.
Successful companies that improve quality in their production processes have now begun to build quality into products from the design stage. This example clearly explains the relationship between process and outcome. Management’s job is to direct processes and outcomes. While supporting and encouraging process improvement, management must also monitor performance and outcomes. A manager who only focuses on results cannot make the right decisions, but after examining the indicators that show efforts to improve processes, they can make better decisions. This is because improvement efforts are small, gradual steps, and their effects are long-term. Management must believe that the results of these efforts will be seen in the long run.

Criteria that prioritize processes are called "P criteria," while those that prioritize outcomes are called "S criteria."

P criteria are long-term, aimed at employee efforts, and often require behavioral changes. S criteria, on the other hand, are direct and short-term.
P criteria and S criteria can be developed and used at every level of management. Managers should be concerned with results, but when we look at successful companies' managers, we often see that they also think process-oriented. They ask questions related to the process and consider both P and S criteria when making decisions. The P criteria they take into account during decision-making include:

  1. Discipline
  2. Time Management
  3. Skill Development
  4. Sharing and Participation
  5. Morale
  6. Communication

If management uses process-oriented thinking properly and supports it with the Kaizen philosophy, they will see how much the company's competitiveness will increase in the long run.

KAIZEN AND REQUIREMENTS

The results of Kaizen activities must meet the requirements of the following three criteria; if they do not, the activity cannot be considered a Kaizen effort.

  1. Quality
  2. Cost
  3. Work Safety

Kaizen should not create a negative situation in any of these three areas. For example, if costs are reduced as a result of a Kaizen effort but work safety is compromised or the risk increases, the Kaizen effort is not accepted. If quality increases but costs also rise, it is not considered a Kaizen effort.

KAIZEN AND MANAGEMENT

Kaizen management has two main elements; Preservation refers to ensuring that all employees work according to the current standards, that new standards are implemented when they are created, and that their compliance is monitored, spread, and sustained. Improvement refers to activities aimed at creating more advanced standards. Once more advanced standards are created, ensuring their implementation becomes the task of preservation.

Preserving standards is the responsibility of the employees, while improving them is the responsibility of management. Operators spend all their time applying the standards. As they gain knowledge about their work, receive training, and develop skills by working in different jobs, they begin to use their intelligence as well as their physical efforts. Their interest in improvement activities increases, and they start making suggestions.
At this point, they begin to perform the task of preserving standards properly.

Investing in Kaizen means investing in people; its impact is gradual, often invisible, and felt in the long term. Management needs to be determined and patient in this regard.

ROLES AND RESPONSIBILITIES
TOP MANAGEMENT

  1. Top management must be determined and patient during the Kaizen program process and allocate sufficient time for it. They must also provide the necessary resources and support for training, motivation, and other activities during the program, and always convey the importance they place on Kaizen efforts to their employees.
  2. After determining policies and objectives, they should share with employees which areas the company needs improvement and direct them accordingly. They should appoint Kaizen team leaders for the determined Kaizen topics and sponsor the Kaizen efforts. The Kaizen efforts must serve the company’s objectives.
  3. Kaizen efforts show results in the long term. While thinking results-oriented, top management should also consider processes, evaluate the performance of employees’ improvement efforts, and give them the necessary time. They should ensure that engineers play a more significant role in production-related activities.
  4. They should initiate practices to strengthen communication between themselves and employees and among employees themselves. They should participate in Kaizen presentations made by employees, guiding and motivating them.
  5. They must monitor the progress and dissemination of the program and take the necessary measures to ensure its continuity.

MIDDLE MANAGEMENT

  1. Middle management must ensure that the policies and objectives set by top management are communicated to all employees. They should direct their employees by determining the topics of the Kaizen efforts and the desired suggestions based on department-specific objectives that serve the company’s goals.
  2. They should lead by example by using Kaizen in their activities within or between departments and instill Kaizen awareness in their employees through training.
  3. They should adopt process-oriented thinking and teach their employees that results will not improve without improving processes.
  4. They should establish the necessary standards to ensure that employees perform their tasks correctly and reliably and continuously improve them. By ensuring that employees work according to the standards, they should fulfill the task of preserving standards.
  5. They should use problem-solving tools in their work and ensure that their employees learn and use these tools.

SUPERVISORS

  1. The most important activity for supervisors is to embrace Kaizen efforts and set an example for their subordinates.
  2. They should strengthen their communication with their subordinates, ensure that communication between management and operators is accurate, and prevent misunderstandings.
  3. They should help employees get used to making suggestions and continuously encourage them. In many companies, employee suggestions are a performance evaluation criterion for supervisors.
  4. They must ensure discipline by monitoring employees’ compliance with the standards.
  5. With the support of the operators, they must ensure that standards remain up-to-date and continuously carry out improvement activities.
  6. Supervisors should get to know the operators well, assess their abilities, guide them to improve their weaknesses, and identify their training needs.
  7. They should support willing and enthusiastic operators in participating in small group activities (quality circles) and raise their morale and motivation.

INITIATING THE KAIZEN PROGRAM

Top management plays a crucial role in managing the Kaizen program. Once you start Kaizen, there is no turning back. In a successful Kaizen program, Kaizen becomes ingrained in the company culture and never leaves. Management must initiate the program with determination and discipline and ensure its continuity. With a good start, they must influence employees and create belief and motivation to gain their full support. Employees will neither adopt nor implement anything that management does not believe in, embrace, or apply. If an initiative is unsuccessful when first launched, regaining the trust and belief of employees for a second attempt will be 2-3 times more difficult. Therefore, careful preparation before a good start is crucial. These preparations are listed below;

  • Kaizen training should be provided first to top management, followed by middle management and supervisors.
  • Management, together with a consultant, should create a roadmap, provide resources, and offer support and guidance.
  • The data collection system must be functioning well.

Actions should be based on accurate data. If your data collection system is weak or non-existent, you should first establish this system. When information is collected accurately, analyzed correctly, and implemented, you will always achieve improvement.

  • It should be ensured that standard work instructions are up-to-date and complete. Any deficiencies should be addressed, and necessary updates should be made. Discipline should be ensured by conducting audits to enforce the use of standards. If your standards are not up-to-date, incomplete, or non-existent, you will realize once again how much your company needs this Kaizen program.
  • You must have identified your losses, measured them, and know where and how much loss you have, and you should have set your improvement targets. Remember, Kaizen efforts begin with the recognition of losses, problems, and potential issues.
  • Employees interact most with their immediate supervisors, and in reality, they do what they say. As with any initiative, it is crucial that the first-line supervisors fully understand and embrace the Kaizen philosophy. Detailed work should be done with the first-line supervisors.
  • If your number of employees is small, it is better for the consultant to provide the initial training to all personnel. However, if your number of employees is large, the consultant should train your white-collar employees, and you should carefully select and train the individuals who will provide training to blue-collar employees. By attending their first training sessions and evaluating the success of the training, you can provide feedback to improve the quality of future training and increase employees’ belief even more.
  • Finally, the program is initiated with the training of operators. Operator training should be completed in a short time; it should not be prolonged, losing its impact and excitement.

PDCA CYCLE


What is the PDCA Cycle?

KAIZEN AND PDCA

The PDCA cycle is a series of activities carried out to implement improvement efforts, monitor their results, and ensure the sustainability of progress achieved.

Plan; begins with identifying a problem, analyzing the current situation, and collecting data for the improvement plan (developing a solution). Problem-solving tools such as Pareto analysis, cause-and-effect diagrams, 5 Whys, and 5W-1H are used.

Do; the improvement plan is implemented once finalized.

Check; it is checked whether the targeted improvement has been achieved. * PDCA Cycle

Act; if the desired improvement has not been achieved, a new plan is made, and the cycle continues until the target improvement is achieved.

If the desired improvement is achieved, the application is standardized. (The existing standard is revised, or a new standard is created.) The new, more advanced standard now forms the new foundation for future improvements. Before PDCA, the existing standards must be applied consistently. Once stability is achieved, the PDCA cycle is used to elevate standards. Initially, there may be problems in implementing the set standards. During the process of addressing these issues and stabilizing the standards, the SAOC (Standardize, Apply, Check, Act) cycle is used. The SAOC cycle is used to stabilize standards, while the PDCA cycle is used to improve them.

TYPES OF KAIZEN

Kaizen efforts are divided into two categories based on the complexity and size of the problem:
• Before-After Kaizen                         • Focused Kaizen

Before-After Kaizen

These are improvement efforts for problems that are mostly suggested by employees, take a short time to complete, and are explained easily with before-and-after photos on a single-page form. They are completed in a short time. Before-After Kaizen:

• Increases morale and motivation,
• Is easy for everyone to understand because it is not complex,
• Encourages and facilitates participation,
• Encourages employees to think,
• Helps them work more intelligently,
• Is a very beneficial tool that makes suggestion-making a habit.

 

Focused (Kobetsu) Kaizen

Focused Kaizen efforts are improvement activities carried out by a team consisting of people from different departments aimed at finding the root cause of a problem, using problem-solving tools, and applying the PDCA cycle to address the company's objectives and needs. After verifying the accuracy of the improvement activities, they are standardized and disseminated.

Focused improvements are carried out in ten steps:
Plan

  1. Selection of the topic
  2. Setting the target
  3. Assigning the team
  4. Current state assessment
  5. Project plan
  6. Analysis

Do

7. Implementation

Check

8. Verification
Act

9. Standardization
10. Dissemination

 

DISSEMINATION

SPREADING KAIZEN:

Spreading Kaizen efforts is very important because Kaizen reaches its true potential when it is disseminated. Focused Kaizen is used for complex and large problems, so they take longer to complete. They are usually aimed to be completed within 1 to 2 months. In Focused Kaizen efforts, top and middle management:

• Select the topic
• Appoint the team leader and members
• Guide the team
• Sponsor the team to help them when they get stuck.

The benefit of Kaizen is referred to as “savings.” The baseline period used to calculate the costs of Before-After and Focused Kaizen is generally one year. The total savings to be achieved are found by subtracting the Kaizen cost from the total savings amount expected to occur within one year. Teams present their Kaizen efforts to management and their colleagues. This not only informs many people about the work done but also boosts the motivation of the team members, who feel satisfied and appreciated by their managers.

 

PROBLEM-SOLVING

KAIZEN AND PROBLEM-SOLVING TOOLS:

Kaizen also links tools used to solve problems. The tools commonly used in problem-solving include:

  • Pareto diagrams
  • 5W-1H method
  • Cause-and-effect diagrams
  • Histograms
  • 5 Whys Analysis
  • Control charts
  • Scatter diagrams
  • Graphs
  • Control checklists
 

KAIZEN AND AREAS FOR IMPROVEMENT:

For businesses operating in the manufacturing sector, the generally accepted losses are defined as the “16 major losses.”


Kaizen is based on the idea that these 16 losses must be improved in order to reduce costs, increase quality, and ensure timely shipments. These losses may vary depending on the business and may increase in number. Companies that have been applying the Kaizen program for a long time have increased the number of these losses to as many as 33. Additionally, over time, the Japanese have developed specific methods to reduce these losses. SMED is a method used to reduce setup and adjustment times, while PM Analysis and the Eight Lean Wastes are among the leading methods used to reduce breakdowns and defect rates. Every January, management shares with employees the Kaizen efforts they want to see carried out in line with the company's goals and needs for that year. In companies, in addition to Kaizen efforts targeting losses and waste, Kaizen efforts related to 5S, safety, health, environment, and ergonomics are also carried out. Management encourages Kaizen efforts on these topics and places more emphasis on their content than on their cost.

 

KAIZEN AND PROBLEMS

There is potential for improvement wherever there is a problem. However, most people lack the courage to admit it when faced with a problem. One of the worst things a person can do is ignore or cover up a problem. For most of us, admitting a problem means acknowledging a mistake and weakness. This situation is even more common in management positions. Employees, on the other hand, fear that their supervisor will be angry when an error occurs in the process, so they continue working, hoping the error will go unnoticed. Furthermore, the word problem has a negative connotation by definition. No one likes to talk about problems, and under no circumstances do they want to be involved in one. However, every problem can be turned into an opportunity. In this case, replacing the word "problem" with the phrase "opportunity for improvement" within the company will be perceived as a more positive situation among employees and will raise morale. Management should consistently tell employees that it is good and praiseworthy to speak up when they encounter a problem. It should always remind them that there can be no improvement where there are no problems.

Kaizen is teamwork. When a company succeeds in being a team with its employees, it can achieve outstanding results.

 

KAIZEN AND PROFITABILITY

There are two ways to increase profit;

1. Increase sales                    2. Reduce fixed and variable costs

Kaizen aims to increase profit by both increasing sales and reducing costs. It achieves this by improving all employees and processes.

 

CONCLUSION

GENERAL EVALUATION:

  1. Kaizen is a continuous improvement activity carried out with the participation of everyone.
  2. It conveys the message, "Nothing is too perfect to be improved."
  3. Kaizen prioritizes people and focuses on their efforts.
  4. It lowers the break-even point.
  5. It encourages employees to think process- and result-oriented.
  6. Kaizen is teamwork.
  7. It increases the sense of ownership.
  8. It enables employees to see real problems and focus on them.
  9. Kaizen believes that every problem is an opportunity for improvement. It says that problems are hidden treasures.
  10. By reducing costs, improving quality, and ensuring on-time shipments, it helps companies become competitive and profitable.

Nothing and no situation is too perfect to be improved.