What is Kaizen?

A system of continuous improvement in quality, technology, processes, company culture,

productivity, safety and leadership.
We'll look at Kaizen from three views. What is Kaizen? What are the benefits of Kaizen? What do you need to do to get
starting using Kaizen principles?
What is Kaizen?
Kaizen was created in Japan following World War II. he word Kaizen means !continuous improvement!. It comes from
the Japanese words !Kai! meaning school and !"en! meaning wisdom.
Kaizen is a system that involves every employee # from upper management to the cleaning crew. $veryone is
encouraged to come up with small improvement suggestions on a regular basis. his is not a once a year% or monthly
activity. It is continuous. &t Japanese companies% such as oyota and 'anon% () to *) suggestions per employee% per
year are written down% shared and implemented.
In most cases these are not ideas for ma+or changes. Kaizen is based on making little changes on a regular basis##
always improving productivity% safety and effectiveness% and reducing waste.
,uggestions are not limited to a specific area such as production or marketing. Kaizen is based on making changes
anywhere that improvements can be made. he Kaizen philosophy is to !do it better% make it better% improve it even if it
ain't broke% because if we don't% we can't compete with those who do.!
Western philosophy can be summarized as% !if it ain't broke% don't fi- it.! he Kaizen philosophy is that everything% even
it it ain't broke% can be improved.
Kaizen is a system of improvement that in Japan includes both home life as well as business improvements. Kaizen
even includes social activities. It is a concept that is applied in every aspect of a person's life.
In business Kaizen encompasses many of the components of Japanese businesses that have been seen as a part of
their success. .uality circles% automation% suggestion systems% +ust#in#time delivery% Kamban and /, are all included
within the Kaizen system of running a business.
Kaizen involves setting standards and then continually improving those standards. o support the higher standards
Kaizen also involves providing the training% materials and supervision that is needed for employees to achieve the
higher standards and maintain their ability to meet those standards on an on#going basis.
More information about Kaizen:
0enefits of Kaizen # what Kaizen can do for you. 1ead about how Kaizen helped 2leetwood and ,ony.
Kaizen
Kaizen focuses on creative solutions instead of capital ependitures.
!etting "tarted With Kaizen
here is more to implementing Kaizen than we can include on a single web page. 3owever% the following serves as an
overview of introducing Kaizen into an &merican workplace.
2or most &merican companies Kaizen involves a significant change in the corporate culture. his is key. he attitudes of
employees # from top management down to new hires will need to change. Kaizen needs to become something all
employees do because they want to% and because they know it is good for them and the company. It can not be
something employees do because management dictates that it be done.
hat means that% if management isn't ready to lead by e-ample% Kaizen will not get off the ground.
$mployee training and communication is important. 'ombined with that% direct management involvement is critical. 2or
e-ample% a manager spending a week on the shop floor% working with employees to help and encourage them to
develop suggestions will help. hat manager should also ensure employees see their suggestions acted on##
immediately. ,uggestions should not be implemented ne-t month or ne-t week##but today. In some cases% a suggestion
submitted in the morning can be implemented that afternoon% or sooner
Keep employees informed about what happens with their suggestions. 4on't have suggestions disappear into a
management !black hole.!
o get Kaizen started it can be helpful to bring in outside e-perts. hey can work in your facility identifying problems that
those close to the work may not see. his serves as a !seed! allowing employees to see how Kaizen works and to
e-perience the benefits of Kaizen.
& significant obsticle to Kaizen in many corporations is that problems are seen as negatives. We don't like problems.
,omeone who is associated with a problem is likely to be negatively impacted 5a lower raise% missed promotion% or even
fired6. In Kaizen problems are opportunities to improve. With Kaizen we want to find% report and fi- problems. Kaizen
encourages and rewards the identification of problems by all employees.
o encourage the submission of suggestions% a part of each supervisor's evaluation should be based on the number of
suggestions submitted by those they supervise. 4on't evaluate employees on the number of suggestions they submit%
evaluate your supervisors and managers and how well they are doing at getting those who work for them to actively
participate in Kaizen.
7anagers should develop methods to help create suggestions and increase the number of suggestions. 2or e-ample%
set up teams or five to 89 people to evaluate work areas% processes% :uality% productivity% and e:uipment
availability;reliability. he team then makes suggestions for improvements% and they may even implement those
improvements.
rain employees in using Kaizen tools such as /,% Kanban% and <ine 0alancing.
Keep in mind that Kaizen is about action. aking action to generate suggestions% and taking action to implement those
suggestions immediately.
Kaizen
Kaizen is focused on ma#ing small improvements on a continuous basis.
What Are $he %enefits &esulting 'rom Kaizen?
Kaizen involves every employee in making change##in most cases small% incremental changes. It focuses on identifying problems
at their source% solving them at their source% and changing standards to ensure the problem stays solved. It's not unusual for
Kaizen to result in 9/ to =) suggestions per employee% per year% and to have bover >)? of those implemented.
2or e-ample% oyota is well#known as one of the leaders in using Kaizen. In 8>>> at one @.,. plant% *%))) oyota employees
submitted over */%))) suggestions% of which >>? were implemented.
hese continual small improvements add up to ma+or benefits. hey result in improved productivity% improved :uality% better safety%
faster delivery% lower costs% and greater customer satisfaction. An top of these benefits to the company% employees working in
Kaizen#based companies generally find work to be easier and more en+oyable##resulting in higher employee moral and +ob
satisfaction% and lower turn#over.
With every employee looking for ways to make improvements% you can e-pect results such asB
Kaizen &educes Waste in areas such as inventory% waiting times% transportation% worker motion% employee's skills% over
production% e-cess :uality and in processes.
Kaizen (mproves space utilization% product :uality% use of capital% communications% production capacity and employee retention.
Kaizen )rovides immediate results. Instead of focusing on large% capital intensive improvements% Kaizen focuses on creative
investments that continually solve large numbers of small problems. <arge% capital pro+ects and ma+or changes will still be needed%
and Kaizen will also improve the capital pro+ects process% but the real power of Kaizen is in the on#going process of continually
making small improvements that improve processes and reduce waste.
<earn how 2leetwood benefited from implementing Kaizen in this article reprinted from .uality 4igest. &nd read about how ,ony% in
erra 3aute% Indiana% used Kaizen to dramatically improve production in an article reprinted from 7anufacturing C echnology
What is 'ive "?
A free, five page online tutorial that provides a quic# overvie* of +".
+" is a basic, fundamental, systematic approach for productivity, quality and safety improvement
in all types of business.
What is a 'ive "?
& 2ive , program is usually a part of% and the key component of Disual 2actory 5Workplace6 7anagement 5D276. &nd /s
and D27 are both a part of Kaizen ## a system of continual improvement ## which is a component of lean manufacturing.
$he 'ive " program focuses on having visual order% organization% cleanliness and standardization. he results you can
e-pect from a 2ive , program areB improved profitability% efficiency% service and safety.
he precipices underlying a 2ive , program at first appear to be simple% obvious common sense. &nd they are. 0ut until
the advent of 2ive , programs many businesses ignored these basic principles.
What types of businesses benefit from a 'ive " program?
$veryone and all types of business benefit from having a 2ive , program.
7anufacturing and industrial plants come to mind first% as those are the business that can realize the greatest benefits.
3owever% any type of business% from a retail store to a power plant ## from hospitals to television stations ## all types of
businesses% and all areas within a business% will realize benefits from implementing a 2ive , program.
What are the 'ive ",s?
@se the following links to learn more about /,
,ort # the first step in making things cleaned up and organized
'ive " )rogram
"ort -.lean /p0
$his is step 1 in a 'ive " program:
2"orting2 means to sort through everything in each *or# area. Keep only what is necessary. 7aterials% tools%
e:uipment and supplies that are not fre:uently used should be moved to a separate% common storage area. Items that
are not used should be discarded.
4on't keep things around +ust because they might be used% someday.
"orting is the first step in ma#ing a *or# area tidy. It makes it easier to find the things you need and frees up
additional space.
&s a result of the sorting process you will eliminate 5or repair6 broken e:uipment and tools. Absolete fi-tures% molds% +igs%
scrap material% waste and other unused items and materials are disposed of.
"ystematize 'ive " )rogram
"ystematize -3rganize0
$his is step 4 in a 'ive " program:
,tep two is to organize% arrange and identify everything in a work area for the most efficient and effective retrieval and
return to its proper place.
.ommonly used tools should be readily available. ,torage areas% cabinets and shelves should be properly labeled.
'lean and paint floors to make it easier to spot dirt% waste materials and dropped parts and tools. Autline areas on the
floor to identify work areas% movement lanes% storage areas% finished product areas% etc. Eut shadows on tool boards%
making it easy to :uickly see where each tool belongs.
(n an office% provide bookshelves for fre:uently used manuals% books and catalogs. <abels the shelves and books so that
they are easy to identify and return to their proper place.
$he ob5ective in this step is: & place for everything and everything in it's place% with everything properly identified and
labeled.
his means there are two important parts to ,ystematic Arganization # putting everything in its proper place and setting up
a system so that it is easy to return each item to its proper place. he second part is where good labeling and
identification practices are important. 0oth the e:uipment;tools and materials you use% as well as their proper storage
locations% need to be clearly identified and labeled.
Information about label and sign making e:uipment.
,ystematic organization not only refers to individual work areas. Four overall facility should also be systematically
organized% including the proper placement of easy#to#understand labels and signs. Eiping% valves% control panels% ma+or
e:uipment% doorways% minor e:uipment% instruments% storage areas% offices and files should all be clearly identified.
,weep # regular cleaning and maintenance
'ive " )rogram
"*eep -&egular .leaning0
"tep $hree: Ance you have everything% from each individual work area up to your entire facility% sorted 5cleaned up6 and
organized% you need to keep it that way. his re:uires regular cleaning% or to go along with our third ,% !shining! things up.
&egular, usually daily, cleaning is needed or everything will return to the way it was. his could also be thought of as
inspecting. While cleaning it's easy to also inspect the machines% tools% e:uipment and supplies you work with.
&egular cleaning and inspection makes it easy to spot lubricant leaks% e:uipment misalignment% breakage% missing
tools and low levels of supplies. Eroblems can be identified and fi-ed when they are small. If these minor problems are not
addressed while small% they could lead to e:uipment failure% unplanned outages or long # unproductive # waits while new
supplies are delivered.
When done on a regular% fre:uent basis% cleaning and inspecting generally will not take a lot of time% and in the long run
will most likely save time.
,tandardize # make it easy to maintain # simplify and standardize
'ive " )rogram
"tandardize -"implify0
"tep 'our: o ensure that the first three steps in your 2ive , program continue to be effective% the fourth step is to
simplify and standardize.
$he good practices developed in steps 1 through 6 should be standardized and made easy to accomplish. 4evelop
a work structure that will support the new practices and make them into habits. &s you learn more% update and modify the
standards to make the process simpler and easier.
Ane of the hardest steps is avoiding old *or# habits. It's easy to slip back into what you've been doing for years. hat's
what everyone is familiar with. It feels comfortable.
/se standards to help people work into new habits that are a part of your 2ive , program.
Any easy *ay to ma#e people a*are of, and remind them about the standards is to use labels, signs, posters and
banners.
2or e-ample% use a EosterErinter to create large format signs% posters and banners. & EosterErinter is a machine that
takes an G#8;9! - 88! original and enlarges it to poster size. Fou can also create posters and banners on your computer
and print them directly on your EosterErinter.
2or labels and smaller signs consider an custom label printer. <abel printers are available ranging from simple%
monochrome models to machines that can print color labels cut into custom shapes.
,elf#4iscipline #maintaining what has been accomplished
'ive " )rogram
"elf78iscipline
"tep 'ive: he final step is to continue training and maintaining the standards.
3ave a formal system for monitoring the results of your 2ive , program.
4on't e-pect that you can clean up% get things organized and labeled% and ask people to clean and inspect their areas
every day ## and then have everything continue to happen without any follow#up.
.ontinue to educate people about maintaining standards. When there are changes # such as new e:uipment% new
products% new work rules # that will effect your 2ive , program% and ad+ustments to accommodate those changes% make
any needed changes in the standards and provide training that addresses those changes.
/sing +s )osters and "igns: & good way to continue educating employees% and for maintain standards% is to use /s
posters and signs. Fou can create your own custom /, posters% allowing you to communicate the secific information that
needs to be communicated at each location. 'hanging work habits can be difficult% and it is easy to slip back into
doingthings the old% comfortable way. @se custom /, posters to remind employees of the proper proceedures% and of the
benefits that come from following a /s plan.
What *ill it cost me?
he shipyard industry is spending nearly a million dollars to develop a 2ive , program the industry can use% and to
implement that program at two shipyards. An the other hand you can implement a 2ive , program without adding an e-tra
dollar to your budget.
1ealistically you probably will need to spend some e-tra money to get your 2ive , program going. here will be training
timeH man#hours spent to get your facility cleaned up and organizedH e:uipment purchases% such as buying a :uality
labeling systemH and time spent on sustaining your 2ive , program once it is in place.
9ean Manufacturing 7 .ase "tudy
%y :("$ 7 Manufacturing ;tension )artnership
.lient )rofile: 7athers 'ontrols% Inc.% a private corporation founded in 8>/8% manufactures electronic and pneumatic
propulsion controls and propeller shaft brakes for the marine industry. he company primarily focuses on supplying
components throughout the world to A$7s in the boat building industry that construct vessels larger than I) feet. & smaller%
yet significant portion of business%
comes from sales to distributors and individual customers in the fishing%
transportation% and pleasure craft industries. 7athers 'ontrols' offices and
manufacturing facility are located in 0urlington% Washington% and the company
employs /9 people.
"ituation: 7athers 'ontrols' desire for growth and increased market share and revenue led the company to develop a new
product line aimed at the fully electronic engine and gear control market. &ware that there were restrictions in its e-isting
operations that could prevent it from meeting increased demand for its
products% 7athers 'ontrol was on the verge of approving a more than J8 million
plant e-pansion pro+ect. Erior to approving the pro+ect% 7athers 'ontrols
contacted Washington 7anufacturing ,ervices 5W7,6% a KI, 7$E network
affiliate% for assistance.
"olution: &fter touring the plant and conducting a fact#finding meeting with top
management% W7, recommended that the company implement lean manufacturing as a means of increasing the capacity
of the plant without costly plant e-pansion.
he 'enter coordinated a lean manufacturing assessment of the plant and
arranged for 7athers 'ontrols' senior management to visit another company that
had been implementing lean manufacturing over the past year.
4iscussing the actual improvements and performance enhancements gained by lean manufacturing with another company's
president provided 7athers 'ontrols' management team with the assurance they needed to approve W7,' proposal to
provide lean manufacturing training and implementation assistance.
%y adopting lean manufacturing% 7athers 'ontrol wanted to increase the
facility's overall capacity by at least 9/ percent to avoid the need to e-pand.
W7, contracted a preferred resource provider to thoroughly educate all of
7athers 'ontrols' employees on lean manufacturing concepts% principles%
guidelines% and analysis tools% and to provide the basis and framework for
change. hen% identification and analysis of the company's processes followed.
he employees' e-perience and lean manufacturing knowledge were applied to the
layout design of the new facility.
$he ne* layout design:
moved the entire production area ne-t to the shipping and receiving area
introduced manufacturing cells that significantly reduced spacere:uirements
promoted one piece flow to minimize assembly costs
reduced product lead#time and work#in#process 5WIE6
lowered inventory levels% which minimized carrying costs
stored tools% information% raw materials% and supplies at their point of use to eliminate wasteful
steps and associated costs.
With the elimination of most departmental barriers% communication wasWith the elimination of most
departmental barriers% communication was
enhanced.
W7, successfully implemented the ma+ority of the lean manufacturing
processes within a si-#month period and did so without the company losing more
than eight hours of production while the plant e:uipment was relocated.
As a result of WM", assistance, Mathers .ontrols reduced its production space
requirements by 6< percent% which decreased capital e-pansion;modification
costs by *G percent since the company no longer needed to enlarge the facility.
Eroduction capacity increased by 8)) percent% which allowed employees to take
advantage of cross#training opportunities% while overall capacity increased by
=) percent% with future improvements anticipated. here was a =9 percent
decrease in WIE and finished goods inventory% which freed up enough cash to pay
for the new plant layout. &nd% with most of its processes simplified% 7athers
'ontrols decreased production lead times by /) percent and reduced internal
rework by */ percent.
&esults:
1educed capital e-pansion;modification costs by *> percent.
&voided a costly e-pansion pro+ect.
Increased production capacity by 8)) percent.
Increased overall capacity by =) percent.
4ecreased WIE C finished good inventory =9 percent.
4ecreased production lead times by /) percent.
1educed production space by =( percent.
1educed production travel distance by GG percent.
1educed internal production rework by */ percent.
$nhanced company#wide communications