Summer Training Report in HR

2013
Exploring the Concept of

Kaizen
PIYUSH KUMAR
MBA- 2012-2014
KANSAI NEROLAC PAINTS LTD. | KANPUR
A
Summer Training Research Report On
Exploring the Concept of Kaizen
SUBMITTED TO:
Gautam Buddh Technical University, Lucknow
For the partial fulfillment of the requirement of
Masters of Business Administration
(MBA -2012-2014)
UNDER THE SUPERVISION OF:
Mr. Satyendra Singh
Human Resource Officer
KANSAI NEROLAC PAINTS LIMITED
KANPUR
SUBMITTED BY:
PIYUSH KUMAR
MBA FIRST YEAR
Roll No. 1218170061
SCIENCE AND TECHNOLOGY ENTREPRES PARK

HARCOURT BUTLER TECHNOLOGICAL INSTITUTE, NAWABGANJ,
KANPUR-208002
1
DECLARATION
I Piyush Kumar student of MBA III sem. of STEP-HBTI, Kanpur hereby declare that
this project report Exploring the Concept of Kaizen of KANSAI NEROLAC PAINTS
LIMITED is written and submitted by me under the guidance of Mrs. SATYENDRA
SINGH (HR. Officer). The entire analysis and conclusion of this report are based on
the information which is collected by me during the training period.
The empirical finding in the report are based on the data collected myself while
preparing this project. I have not copied anything from any source or other
project submitted for the similar purpose.
DATE: 15 JULY 2013

PLACE: KANSAI NEROLAC PAINTS LTD.
(SIGNATURE OF THE STUDENT)
ACKNOWLEDGEMENT
The pages that follow comprise a report on Exploring the Concept of Kaizen.
Before we get into think of things. I would like to add a few heartfelt words for
the people who were a part of this project in numerous ways. In particular I would
like to thank Mr. Satyendra Singh (HR. Officer) for leading his time and valuable
efforts for making this project a success.
And finally I would like to thank to all those who helped in submitting this project
in time and in a systematic and decent manner.
PIYUSH KUMAR
PREFACE
The Summer Training is an integral part of academic curriculum. During the training, a
student gets an opportunity to understand the practical aspects of theory by making
their concepts more clear. This project report is the outcome of the summer training
that I have undergone at KANSAI NEROLAC PAINTS LIMITED, KANPUR for the
partial fulfillment of my Masters of Business Administration. The topic allotted to me
by the company is Exploring The Concept of Kaizen.
I have tried my level best to make a good report. However, no one can claim for
perfection entirely. Preparation of project requires perseverance, initiatives, proper
guidance and direction. So, it is mandatory to take the aid of various departments.
INDEX
TOPICS
PAGE No.
1. About the Kaizen
57
2. Objective of Kaizen study
8-11
3. Kaizen Events
12-32
4. Rewards and Recognition Policy
32-37
5. Company profile
38-44
6. The HR Policy
45-59
7. Awards of KNPL
60-69
8. Kaizen Impact Flow Chart
70
9. Kaizen Criteria and Methodology
71-72
10.PDCA Cycle
73
11. 5S
74-80
12. Research Work and Its Agenda
81-90
13. Findings
91
14. Conclusion and suggestions
92-93
15. Limitations of Study
94-95
16. Questionnaire
96-103
17. Reference
104
ABOUT THE KAIZEN

Kaizen means Kai (Change) and Zen (For Good). Any change for Good can be termed
as Kaizen.
Kaizen is any small improvement done in the current working procedure, equipment.
Kaizen is a daily process, the purpose of which goes beyond simple productivity
improvement. It is also a process that, when done correctly, humanizes the workplace,
eliminates overly hard work , and teaches people how to perform experiments on their
work using the scientific method and how to learn to spot and eliminate waste in
business processes.
In all, the process suggests a humanized approach to workers and to increasing productivity:
"The idea is to nurture the company's human resources as much as it is to praise and encourage
participation in kaizen activities." Successful implementation requires "the participation of
workers in the improvement." People at all levels of an organization participate in kaizen, from
the CEO down to janitorial staff, as well as external stakeholders when applicable. The format
for kaizen can be individual, suggestion system, small group, or large group.
At Toyota, it is usually a local improvement within a workstation or local area and involves a
small group in improving their own work environment and productivity. This group is often
guided through the kaizen process by a line supervisor; sometimes this is the line supervisor's
key role. Kaizen on a broad, cross-departmental scale in companies, generates total quality
management, and frees human efforts through improving productivity using machines and
computing power
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Condition or any process leading to benefits to the person doing Kaizen and company. Kaizen
will be recognized only when the format is filled, idea is implemented and expected benefits are
understood/ verified by sectional head / AET leader.
Kaizen is a daily process, the purpose of which goes beyond simple productivity improvement. It
is also a process that, when done correctly, humanizes the workplace, eliminates overly hard
work , and teaches people how to perform experiments on their work using the scientific
method and how to learn to spot and eliminate waste in business processes. In all, the process
suggests a humanized approach to workers and to increasing productivity: "The idea is to nurture
the company's human resources as much as it is to praise and encourage participation in kaizen
activities.
"Successful implementation requires "the participation of workers in the improvement." People
at all levels of an organization participate in kaizen, from the CEO down to janitorial staff, as
well as external stakeholders when applicable. The format for kaizen can be individual,
suggestion system, small group, or large group. At Toyota, it is usually a local improvement
within a workstation or local area and involves a small group in improving their own work
environment and productivity. This group is often guided through the kaizen process by a line
supervisor; sometimes this is the line supervisor's key role. Kaizen on a broad, crossdepartmental scale in companies, generates total quality management, and frees human efforts
through improving productivity using machines and computing power.
While kaizen (at Toyota) usually delivers small improvements, the culture of continual aligned
small improvements and standardization yields large results in the form of compound
productivity improvement. This philosophy differs from the "command and control"
improvement programs of the mid-twentieth century. Kaizen methodology includes making
changes and monitoring results, then adjusting. Large-scale pre-planning and extensive project
scheduling are replaced by smaller experiments, which can be rapidly adapted as new
improvements are suggested.
In modern usage, it is designed to address a particular issue over the course of a week and is
referred to as a "kaizen blitz" or "kaizen event". These are limited in scope, and issues that arise
from them are typically used in later blitzes.
Kaizen Is Different
In recent history, Kaizen-influenced business philosophies have helped to shape new
roles for much of the worlds management and labor. As a result, many facilities are
experiencing greater efficiencies and organization than ever before.
Many of these advancements are the direct result of a labor force empowered by Kaizen.
This is an environment in which all employees participate in finding efficiency
improvements and are never afraid to contribute to the success of their facility. Modern
Kaizen advances this philosophy further. In many modern facilities, work area personnel
arent just encouraged to contribute ideas for facility improvements its expected.
This is a philosophy shared by all employees and helps build an atmosphere of teamwork
and achievement. This greatly improves communication between personnel and
management and helps facilitate efficiency improvements in work areas.
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In Kaizen, all suggested ideas are reviewed by management and given serious
consideration without
preferential treatment. Ideas found to have merit are quickly
implemented, no matter who suggested it. This level of active participation empowers
employees to constantly strive for improvement and work to keep their facility
competitive.
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Objective of the study

A Kaizen event is a focused and structured improvement project, using a dedicated crossfunctional team to improve a targeted work area, with specific goals, in an accelerated
timeframe . Recent evidence suggests that Kaizen events are becoming increasingly popular as a
method for targeting initial improvement both in business performance and social system
outcomes . However, the initial success of a Kaizen event does not guarantee the sustainability of
event outcomes. In fact, some practitioners note that Kaizen events should not be performed
unless they are done with the intent and activities necessary to sustain results.
To over come this situation my objective was how to make Kaizen event more efficient,
effective, and interesting and make this useful and helpfull in the company.
A Kaizen Event
A Kaizen is a highly focused assault on an area or process to achieve rapid
improvement in the organization which uses a cross-functional team with process
insiders and outsiders. It achieves as many improvements as possible during a typical
day event in every organization every year has to be done. It has some augments, but
does not replace, continuous improvement in the works and the employees and workers to
do all the work together and have all the problem short-out during the work.
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When Are Kaizen Events Appropriate?

Kaizen Events are done in the organization because for the improvement and the work
progress in doing all the work which has been done for it. It has some conditions in
which Kaizen are given in the prizes in which the events are going to be held. The
events are going to be held because of the following conditions:-
Need for solution is urgent
Competitive crisis
High customer dissatisfaction
Big impact projects
Significant impact on sales or profits
Bottlenecks
Cannot tolerate prolonged disruption
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Selecting Candidates for Kaizen Events
The selection of the candidates for Kaizen events which going to be held by the
organizations are selected through these of the following factors: Factors to consider the entering of the candidates.
Strategic goals of the organization
Current performance of process, department, machine (good time for Value Stream
Mapping)
Feasibility (difficulty, resources required, probability of success)
Selecting the top few candidates
Decision matrix (sample available on request)
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Selecting the Pilot Event
The event must be the highly visible and obelized by the advertisement and all the
event are done in higher scale. The PILOT EVENT means that event which are going to
be held in larger in scale and there is the success of the event which has been for
growing change in the organization. The pilot event has some success points which has
been detailed according to these points:-
a. High likelihood of success.
b. Results will be highly visible.
c. Makes a significant impact to the organization.
d. Solves operational problems, not management issues.
e. Area has a stable current process.
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Preparing For the Event

The team has to be prepared for all the departments or the sections in which the
progress or the result outcome has to be concerned about it. The team has to be selected
for all the members in which every member has to participate in this event and they
must have to play important role with the co-ordination of the team. It has some major
aspects which may define it easily:-
Select team sponsor
Select team leader
Choose the facilitator
Choose team participants
Develop the team charter
Gather data prior to the event
Prepare the organization
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Recorder
The recorder means that part in which the person records all the important data,
decisions, etc. which may useful for the future aspects and all the data are provided
easily within a less time of period. It has some important facts are as follows:-
Records important results, actions, & decisions
Promptly distributes minutes to participants
Usually a team member
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Traits of Good Participants

The good participants may have the idea about what Kaizen means and all the work
done through easily and done all the work in very less and accurate time period. The
good candidates may active at any time in which it may have to be highly worked at
that time. The following criteria which have been seen in the applicable candidates are as
follows:-
Understands the target area
May work in area
Can learn the area
Open to doing things differently
Will get involved
Good communicators
Brings knowledge (technical or procedural) that will help the team succeed.
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The Kaizen Team Charter

The Kaizen team charter has to be well known about all the rules, types, scopes, etc. the
team has to be defined or selected by all the Top Level of Management or the Board of
Directors which are selected under the supervision of it.
Team Charter clearly identifies rules of operation
Objectives
Scope
Resources available (budget, assistance, etc.)
Authority of the team (and its limits)
Deliverables
Schedule
Code of Conduct (developed at kick-off meeting)
_ Created by leader and approved by team

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Before 1st Team Meeting

The very first step is to 1st meeting of all the volunteers has meet with all the applied
candidates who participated in the event which was held by the organization. The
following methods are as follows:-
1. Gather detailed information in advance
2. Process steps
3. WIP levels
4. Capacities/process times
5. What is produced and how much?
6. Cycle and queue times
7. Batch sizes & changeover frequency
8. Defect Rates
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9. Up-time
10. Number of operators
11. Photos and layout of target area
Rolling Out the Kaizen Event

Kaizen event are the major event for all the organization in which the development and
the growth is important for everyone. The rolling out in the Kaizen event is the main
part of all event which may have to handle about it. The Kaizen event may have to take
the
supervision
of
the
management.
It
may
help
to
preparing the organization
considerations which may to develop in all about it. The various parts of rolling out are
as follows: Developing a sense of trust across the organization
Generating enthusiasm about the event
Demonstration of commitment by management
Publicizing the event - before and after
Getting the union to cooperate
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Team Kickoff (includes sponsors)
Review draft charter, modify, approve
Develop code of conduct (agreement on rules)
Discuss training and event logistics, etc.
BASIC KAIZEN PHILOSOPHIES

The basic Kaizen Philosophies are as follows:
Innovation Comes from anyone, but the right environment must be provided.
Performance Managers spend time in work areas so performance improvements are well
communicated.
Bottom Line Cost reductions involve many small steps by both management and labor.
Tradition A company should only have a tradition for change.
Profit Sharing All employees are rewarded for finding efficiency improvements that
increase profits.
Inventory Lower inventories reduce waste and help uncover flaws in the system.
Quality Quality comes from constant attention to all levels of product design, development
and production.
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Reliability Good station operators maintain and improve their own machines for greater
reliability.
Specialization Learn your job first and then learn everything related to your job. Never
specialize.
Repetition The more one improves, the more the company saves and the more they can pay
employees.
Direction Look around for visual cues for what to do next.
Not My Job Instead of complaining, find ways to make your job easier and more
interesting.
Goals The managements goal is the same as yours.
Loyalty Lookout for your company, it has the same goal as you.
Implementation
The Toyota Production System is known for kaizen, where all line personnel are expected to stop their
moving production line in case of any abnormality and, along with their supervisor, suggest an
improvement to resolve the abnormality which may initiate a kaizen. The cycle of kaizen activity can
be defined as:
Standardize an operation and activities.
Measure the standardized operation (find cycle time and amount of in-process inventory)
Gauge measurements against requirements

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Innovate to meet requirements and increase productivity
Standardize the new, improved operations
Continue cycle ad infinitum
Five main elements of Kaizen
Teamwork
Personal discipline
Improved morale
Quality circles
Suggestions for improvement
Benefits & Application Of Kaizen

Where Kaizen is properly applied, facilities will experience many benefits. Managers often
become more effective leaders, work area personnel are motivated and employees begin to
operate as a cohesive unit. The end-result is an environment fostering teamwork and employees
working together to achieve common goals.
Not only does Kaizen help all employees improve the workplace, facilities experience many
economic benefits. Often, these include increased profits and lower costs. Managers actually
stand to benefit the most from the application of this philosophy. Kaizen provides managers
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with access to a constant flow of new ideas to improve their facility. Many of these are ideas
only a Kaizen workforce will communicate to management. Once implemented, their effect can
ripple through a facility and positively influence many unforeseen elements.
Often, uncovering issues management would not know of otherwise. Of course, these are
benefits only realized by disciplined managers. To be rewarded, they must work to support
Kaizen at every given opportunity and seek new ideas from all employees. Eventually, all
employees will grow to respect these managers. The result helps managers become more
effective leaders and brings greater value to the work they provide.
This style of management not only helps managers, it also empowers workers by making
them responsible for managing the implementation of their own ideas. Workers become focused
on achieving the same efficiency-improving and profit-increasing goals as management. Several
popular application strategies are listed in this guide to help properly apply Kaizen. Since no two
facilities are the same, these are only suggested strategies and should be modified to best suit a
facilitys individual needs.
SUCCESS STORIES
One of the largest auto manufacturers in the world is well-known as a pioneer in Kaizen. This
manufacturer, a well-known Japanese company, is credited with formalizing the philosophy and
helping turn it into a globally accepted management philosophy as early as the 1960s. Since then,
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the company claims to have experienced many successes through the continued practice of
Kaizen. In one example, company managers claimed to have received over 75,000 suggestions
from 7,000 employees in a one year period. Of these suggestions, 99% were implemented.
These are unusual results, but clearly achievable with the proper application of Kaizen. One can
only imagine how much money the company saved by implementing this many improvements.
In Kaizen, the implementation of an idea is viewed only as one small
improvement in a continual search for other improvements. However, these individual
improvements add-up over time and can provide substantial benefits for any facility. Quality,
customer service and even sales can increase, while safety issues and sick days decrease. In
addition, employees working in a Kaizen facility generally find work to be easier and more
enjoyable. This results in higher employee morale, job satisfaction and lower turn-over. With
every employee looking for ways to make improvements, facilities may see several fundamental
benefits:
Improved productivity
Improved quality
Reductions in safety issues
Quicker deliveries
Lower costs
Increased customer satisfaction
Kaizen is known to be beneficial to facilities facing economic challenges. In Japan, facilities
applying Kaizen were known to overcome many great economic obstacles. In fact, post-WWII
Japan was far from an ideal environment for unbridled economic growth. Yet, it occurred.
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Thanks, in part, to Kaizen. Like the implementation of any new method or process, applying
Kaizen does require a brief period of adjustment. At first, employees and managers may be
reluctant to make changes in their roles. Preparing a long list of employee and facility-wide
benefits can help overcome this resistance and open the door to greater acceptance. In general,
facilities are going to benefit from Kaizen differently as will many employees. However, there
will be some common and facility-wide benefits for each employee. Early on, these benefits
should be shared with employees during regularly scheduled facility meetings, along with any
success stories, to help foster Kaizens continued acceptance and use.
PIT FALLS IN KAIZEN
Resistance to change
Lack of proper procedure to implement
Too much suggestion may lead to confusion and time wastage
Purpose
To Define the Kaizen working i.e. defining the Kaizen, defining the role of Kaizen pillar team,
Format and procedure for kaizen recording and submission of Kaizen, Defining the Rating
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system - Kaizen Reward and Recognition policy, Horizontal Across plants Kaizen deployment
policy.
Kaizen
Kai (Change) and Zen (For Good). Any change for Good can be termed as Kaizen.
Kaizen is any small improvement done in the current working procedure, equipment
Condition or any process leading to benefits to the person doing Kaizen and company. Kaizen
will be recognized only when the format is filled, idea is implemented and expected benefits are
understood/ verified by sectional head / AET leader.
Key Elements of Kaizen are Quality,

efforts, Involvement of all employees, Willingness to change and Communication.
KAIZEN is a (relatively) low cost, simple, team-based approach Kaizen Pillar Team
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The Kaizen Pillar Team

Pillar team means a Team made from a combination of various AETs Members lead by
a Manager, the team responsible for making the Kaizen drive happening at plant level.
The team meets fortnightly to review its implementation progress, identify/overcome
barriers, celebrate successes, and document its processes.
The Team is also responsible for finding out the opportunity of Kaizen implementation at
cross-functional area i.e. Horizontal deployment of achieved Kaizen; the champion will
track and record the progress of Horizontal deployment.
Role of Pillar Team Members

As each member is also a part of AETs he will be reporting Kaizen progress in two
meetings viz. AET meetings and Kaizen pillar meeting.
Ensuring the Kaizen movement in there section and are named as leader / contributor for
kaizen movement in section.
Communication / Coordination of Kaizen implementation requirement and highlighting
the requirements of some bigger Kaizen required intersectional representation/coordination in Kaizen pillar team meeting.
Making the action plan of why and how Kaizen activities are going good or bad in his
section and how he is planning to improve the same.
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Verification of the submitted Kaizen before signing and forwarding it to AET leader for
evaluation and recording it to Kaizen recorder.
Along with AET leader assessment of Kaizen and rating to the Kaizen (Quality Kaizen or
Non-quality Kaizen)
Posting and forwarding the Kaizen in soft on weekly basis to Kaizen recorder.
Role of Kaizen Champion

Receiver / Coordinator / Recorder / Leader / Policy Maker / Evaluator / Motivator
Recording the No. Of Kaizen category wise.
Forwarding the Quality Kaizen to the Kaizen evaluation team, working with team for
evaluation of Quality Kaizen ratings.
He should be involved in getting the benefits clarified and certified by external auditors.
Representative of the plant in Kaizen pillar external review meetings.
Updating Kaizen in KM and will coordinate and keep track of horizontal deployment /
progress of kaizen within plant.
Uploading the Best Kaizen in completely filled format for easy deployment in other
location. (Not only in Summary sheet)
Kaizen Pillar Champion should make MIS for Kaizen progress and should forward the
same to ME cell coordinator of the plant.
He is responsible for communication of potential Horizontal deployment opportunity of
Kaizen implementation across plant and should ensure the communication of acceptance
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of deployment of kaizen from other plant is happening also should keep a track of actual
implementation status of these Kaizen opportunities.
Role of AET leader

After receiving the signed Kaizen format from Kaizen coordinator AET leader and
Kaizen coordinator to assess the Kaizen whether it is Quality Kaizen or Non-quality
Kaizen and rate the Kaizen according to the guidelines given below
After review it is the Joint responsibility of AET leader that Kaizen filled format is
submitted to Kaizen recorder of the Plant
Role of Sectional officers
Officers role is facilitator, whenever any kaizen is suggested by operator for

implementation, all the help required for implementation to be extended by officer. His
name should not appear on kaizen form.
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Role and Team Composition Kaizen review team

The cross sectional Kaizen coordinators team of 3~4 members will verify the Kaizens
from other sections.
These team members will evaluate the Fortnightly submitted Quality Kaizen of rating
system attached with this document.
The details will be recorded by Kaizen champion
This team will also be responsible for making action plan along with sectional Kaizen
coordinator where the movement is not happening
Kaizen Recording and Evaluation Process
After completion of idea implementation it can be recorded in attached format the format
should be filled and signed by the person completing the Kaizen along with team member
played the supportive role to sectional Kaizen coordinator or AET Leader
Sectional coordinator will verify the implemented kaizen and will submit the filled form
after signing to sectional AET leader.
AET leader and Kaizen coordinator to assess the Kaizen whether it is Quality Kaizen or
Non-quality Kaizen and rate the Kaizen according to the guidelines given below.
Kaizen coordinator will forward the Kaizen forms to Kaizen recorder after uploading the
details in the File weekly.
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Kaizen recorder will record the Kaizen in summary file.
Kaizen recorder will give the area wise quality Kaizen to the Kaizen review team All the
quality Kaizen will be reviewed by this team fortnightly and confirm the ratings.
The Kaizen review team will also check the possibility of deployment of Kaizen in other
areas and will communicate to other AET leader/ section heads.
Kaizen review team will meet fortnightly to review the Kaizen.
Reward and Recognition Policy
General Guideline
Irrespective of importance and saving potential No plant personnel has got a right in term of
committing any financial or non financial benefits to person or group of person apart from the
guidelines mention in this document.
The price distribution, updating in guidelines is the sole rights of GNP management. Union or a
group of unionized people participation in demanding a change in guidelines will not be
entertained.
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1st Level Rating of Kaizens (1st Year Of Kaizen Launch)
This Scheme will be applicable for initial one Year of Kaizen Launch and
implementation the focus is to have kaizen from all employees.
2 Persons name can be mentioned on Kaizen form
Both the persons will be entitled for Getting Kaizen counted on their names.
The Award will be given on Based on No. Of Kaizen completed by the Person
The Awards will be given to the Persons on 10,25,50,100,150,200,250,300,350,500 and
more than these No. of Kaizen.
Along with No. of Kaizens the Quality Kaizens giving the savings of more than > 15000
pa will also rewarded as equal to 5 Kaizens and if an employee gives such type of
Kaizens will be rewarded once he reaches No. Equal to 10,25,50,100 etc.
The award amount will be
No.
of Award Amount
Kaizen
No.
of Award Amount
Kaizen
10
< Rs. 75
250
< Rs. 500
25
< Rs. 125
300
< Rs. 550
50
< Rs. 225
350
< Rs. 600
100
< Rs. 300
400
< Rs. 700
150
< Rs. 400
450
< Rs. 750
200
< Rs. 450
500
< Rs. 1000
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2nd Level Rating of Kaizens (After One Year of Kaizen Scheme Launch)
Any Kaizen will get one point irrespective of grade.
Quality Kaizen will be rewarded 3 or 5 points based on the below mentioned
criterion.
If any employee gives 5 Kaizens in a month, one bonus point will be awarded.
Initiator will get full marks and assistant will get half points
If some Kaizen is exceedingly good and helpful to other sections or factories, Kaizen
review team can award 10 points after getting approval from Kaizen leader.
Individual Rewards will be based on points.
Individual Rewards will be for 10,25, 50, 100 points. & Multiples of 50 points
The employee getting maximum points in a month will be rewarded as Kaizen King
of the month (He will be rewarded with a Gift amounted Rs. 150
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The Scheme of Reward will be
Kaizen Points
Award Amount
Kaizen Points
Award Amount
Note
25
< Rs. 125
500
< Rs 500
Once the
50
< Rs. 225
550
< Rs. 525
Person
100
< Rs. 275
600
< Rs. 550
Touches
150
< Rs. 325
650
< Rs. 575
the 1000
200
< Rs. 350
700
< Rs. 600
Point
250
< Rs. 375
750
< Rs. 625
score his
300
< Rs. 400
800
< Rs. 650
score will
350
< Rs. 425
850
< Rs. 675
restart
400
< Rs. 450
900
< Rs. 700
450
< Rs. 475
1000
= Rs. 1000
from
Zero
Level
Kaizen trophy will be given to the section that scores maximum.
Kaizen score will be calculated as the multiplication factor of % participation and

Points per person.
% Participation = No of persons giving Kaizens / total no of persons in the section.
Points /person = Total points of the section/ total no of persons in the section
Kaizen trophy will be given every month.
A section, winning trophy for consecutive three times will retain the trophy.
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Criterion for rating Quality Kaizen

Criterion
Stress reduction / ease of
operation
Productivity
Cost saving
3 points
Substantial stress
reduction
5 ~ 10 % increases in
productivity
Recurring cost saving
>10000 & <25000 cost
One time >5000 <15000
Safety
5 points
Substantial stress reduction coupled
up with increase in productivity
> 10 % increase in productivity
Recurring > 25000 per annum
One time >15000
Permanent measures for prevention
of accidents / near misses
1.Substantial
improvement
in
equipment condition
2. Breakdown Prevention
Equipment condition and

efficiency
1.Substantial
improvement in
equipment condition
Quality
Consistency in current Up gradation of quality of process /

performance of process/ product
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Launch of Kaizen at Workplace or Factory

1. Making a Kaizen Pillar Team Identification of members and champion.
2. Sharing of Kaizen Presentation concept to the team members
3. Reward and Reorganization scheme with team members
4. Forming a Policy statement for Kaizen Pillar
5. Identification of one block in the AET board - dedicated to Kaizen/ improvements.
6. Making the role and responsibility clear to Kaizen pillar team members.
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KANSAI NEROLAC PAINTS LIMITED
Origin & Evolution of Nerolac:It is the second largest coating company in India and market leader in Industrial Coatings. Its
Industrial Coatings it has a wide range of products in the Automotive, Powder, General Industrial
and High performance Coatings space. Nerolac paints, as it is popularly known, is an established
brand in decorative paints.Kansai Nerolac Paints Ltd is a subsidiary of Japan based Kansai Paint
Company Limited, which is one of the top ten coating companies in the world. The technological
edge of Kansai helps us constantly innovate and come up with products that meet consumer need
gaps. Kansai Nerolac has always believed that the key to its business is :
Technology
Research & Development
Innovations
Quality
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Year 1920, we began as Gahagan Paints and Varnish Co. Ltd. in Mumbai. The journey is marked
by moving from strength to strength in every sphere of business be it product introductions
through innovation, value engineering and superior technology.
1920: We started our journey as Gahagan Paints and Varnish Co. Ltd at Lower Parel in Mumbai.
1957: Goodlass Wall Pvt. Ltd grew popular as Goodlass Nerolac Paints (Pvt) Ltd. Also, it went
public in the same year and established itself as Goodlass Nerolac Paints Ltd.
1976: Goodlass Nerolac Paints Ltd. became a part of the Tata Forbes Group on acquisition of a
part of the foreign shareholdings by Forbes Gokak.
1983: Goodlass Nerolac Paints Ltd. Strengthened itself by entering in technical collaboration
agreements with Kansai Paint Co. Ltd, Japan and Nihon Tokushu Toryo Co. Ltd, Japan.
1999: Kansai Paint Co. Ltd, Japan took over the entire stake of Tata Forbes group and thus GNP
became wholly owned subsidiary of Kansai Paint Company Ltd.
2006: On the 11th of July, Goodlass Paints Ltd. name has been changed to Kansai Nerolac Paints
Ltd.
Management & Key People
The people who make the company are its real assets.
At Kansai Nerolac, we stand by this. The success of Kansai Nerolac has hinged on this
philosophy since 1920, and being the second largest paint company in India is the rightful tribute
to its people's commitment and dedication.
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Board Of Directors
Dr. Jamshed Jiji Irani
Chairman
Mr.Devendra Motilal Kothari
Vice Chairman
Mr.Harishchandra Meghraj Bharuka
Managing Director
Mr.Susim Mukul Datta
Director
Mr. Hiroshi Ishino
Director
Mr. Pradip Panalal Shah
Director
Mr. Noel Tata
Director
Mr. Pravin Digambar Chaudhari
Wholetime Director
Mr. Yoshikazu Takahashi
Director
Mr. H. Nishibayashi
Director
With employee strength of around 2000 spread over the country and an efficient management,
the company provides the conducive work atmosphere to develop and grow. Our team of Ph.D's,
engineers and technicians visit collaborator's plants abroad to update themselves with the latest
techniques.
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Management Committee Members
Name Of The Person
Designation
Mr. H.M. Bharuka
Managing Director
MR. Pravin Chaudhari
Director
Mr. Shrikant Dikhale
Vice President HR
Mr. Anuj Jain
Director - Decorative Sales-Marketing
Mr. Mahesh Mehrotra
Vice President - Technical
Mr. Hitoashi Nishibayashi
Director Supply Chain & Auto Marketing
Mr. P.D. Pai
Vice President - Finance
Mr. Jason Gonsalves
Vice President - Corporate Planning & IT
Mr. Sudhir Rane
Vice President Automotive Coatings
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Quality
It is the philosophy of Kansai Nerolac Paints Ltd., and its associates to achieve complete
customer satisfaction by providing products and services that consistently meet or exceed the
customer needs and expectations, pursuant to agreed specifications, delivery schedules and
competitive prices. It is the philosophy of the company to systematically operate its
manufacturing facilities by inculcating commitment to total quality management at all levels and
on a continuous basis with a view to achieving First Time Right results in manufacture,
services and other operations.
In continuation of our efforts to achieve highest Quality standards we the Kansai Nerolac Paints
Ltd have successfully implemented various Quality Managements Systems in our organization.
All manufacturing locations of KNPL have been certified for ISO 9001-2008
Being major Industrial paint manufacturer & supplier to OEM customers KNPL
has also
implemented QMS as specified by ISO/TS 16949 standard .Our industrial paint manufacturing
locations are certified for ISO/TS 16949 -2009
The Japanese 5-S and TPM (total productive maintenance) concepts have been implemented in
organization.
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Quality Policy
We are committed to provide total customer satisfaction by supplying Quality products and
services to meet or exceed customer requirements.
Safety
The Company takes the greatest possible care to ensure the safety, health and welfare of its staff
and the communities living around its facilities. All manufacturing locations are OHSAS-18001
certified. Safety is given paramount importance across the organization. Safety and occupational
health programme are in place to ensure the wellbeing of employees and facilities at all
locations. The safety management system is in line with guidelines set by the British Safety
Council.
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The HR Angle
The HR Philosophy:At Nerolac we recognize our human resources as extremely important and critical assets. We
honor the dignity of each individual, irrespective of position and highly value the feelings and
emotions of people.
Our Human Resource Policy is, to facilitate creation of synergy, mutuality and interdependence
between individual and corporate development and growth through total employee involvement
and building an enabling work culture in the organization.
Informality in interactions, transparency and openness in communications at all levels, and an
enabling work environment supporting high autonomy of work, transparency and an objective
subjectivity of Performance Management System, fair dealing, tremendous care and concern for
people are a few of the softer aspects of permeable people management environment which
represent the organizational climate and culture. Our faith is averred by the fact that people feel
pride in being part of the Nerolac family. We care for people; people care for our business.
To provide for a policy framework so as to institutionalize the Performance Management

System by developing an integrated process of KRA setting, self assessment, appraiser and
reviewer evaluation which is transparent and helps creating a performance driven culture
whereby organisation members are committed and motivated to continuously excel, thus leading
to individual development and organisational growth.
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2. Objectives
2.1 To provide a framework for systematic planning of the Key Result Areas (KRAs) at the
beginning of each financial year.
2.2 To facilitate periodic reviews through self assessment and appraiser evaluation.
2.3 To provide employees useful performance feedback and developmental inputs.
2.4 To ensure an objective evaluation of employee performance.
2.5 To provide inputs for determining Compensation and Incentives payable.
2.6 To provide inputs for training needs for development of individual employees.
2.7 To evaluate employees on Corporate values.
3. Process
3.1 The performance appraisal process will be applicable to employees in Managerial, Executive
and Sales category.
3.2 The process of performance appraisal shall start with the exercise of KRA setting in the
month of March/April every year. For the new joinees the KRAs should be set within the first
one month of the employee joining. Based on the role & job description of an employee, the key
result areas for the next financial year will be worked out and mutually agreed upon by the
immediate appraiser and the employee along with the weightages of each KRAs. These key
result areas will form the basis of overall performance targets of the employee and they will be in
terms of Qualitative & Quantitative parameters and Sales KRAs wherever applicable. (Ref.
Annexure 6.1 & 6.2)
Key Result Areas (KRAs) refer to focused areas of outputs or outcomes for which a role is
responsible. These are tasks and activities that are most important in evaluating individual
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performance towards achieving organizational goals. A typical role will have targets of three to
five Quantitative & Qualitative KRAs.
3.3 The KRA plan will be reviewed periodically (ideally 2-3 times a year). The fourth quarter
will be the Annual Performance Appraisal and will provide for data that would aid in various
other processes of compensation, promotion, reward and recognition career progression &
employee development.
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3.4 The entire process of appraisal from Setting of KRA to the Annual review will be facilitated
by the Corporate HR through the Employee Self Service (ESS) portal in HRScapes which is an
online tool accessible to all employees in Managerial, Executive and Sales Category.
3.5 While setting the KRAs, the appraiser will enter Quantitative, Qualitative, and Sales KRAs
(as per the applicability) for the appraisee and will send the same to him/her for consideration
and acceptance. The appraisee will either accept the set KRAs or send to the appraiser for
reconsideration in case he/she has to suggest any other view point. The process of KRA setting
will be completed by mutual agreement on the same by the appraiser and the appraisee. The
criteria while setting KRAs will be as below:
(1) Alignment with the organisational goals.
(2) Relevance to given roles
(3) Specific & Measurable
(4) Under employees control (Achievable)
(5) Understood and accepted by appraise
Appraisee One who is appraised; one undergoing an appraisal

Appraiser The immediate supervisor of the appraisee
Reviewer The immediate supervisor of the appraiser
3.6 The KRA review will be triggered as per the review period agreed. The appraisee will assess
himself/herself on each KRA and send the self assessment to appraiser for further evaluation.
The appraiser shall call the appraisee for the KRA performance review meeting and discuss the
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progress on each KRA at length, give constructive feedback and guidance and record the
agreements/disagreements before arriving at the achieved scores. (Ref Annexure 6.3 & 6.4)
3.7 The annual appraisal process or the final quarter review will be triggered in the end of the
financial year. During the annual review, the Appraisee will also assess himself/herself on the
competency framework (as per the applicability) and will be evaluated on the Corporate Values
too. The appraiser can make recommendations regarding promotions based on the Performance
and Potential of the person. For promotion proposal it will be necessary for Appraiser to give full
justification for the recommendation made. (Ref. Annexure 6.5, 6.6 & 6.7)
3.8 The scores and promotion recommendation given by the appraiser and evaluated by the
reviewer can be moderated by the HOD jointly with Corporate HR in an attempt to differentiate
the various members of the team based on their performance in line with the suggested
distribution matrix given below, as well as taking into consideration factors such as business &
location complexities and unforeseen environmental changes.
3.9 The appraiser and reviewer will indicate the key areas of development for the individual w.r.t
to competencies and function specific skills so as to determine training needs. The HR
department will pool the inputs from this process and work jointly with the departmental head
for nominating employees for training programs. The needs identified from this process are
Holistic in nature and it may not be necessary that the training will be imparted to all employees
for all the needs identified. The needs compiled will be re-confirmed at a later stage with the
HODs. (Ref. Annexure 6.8)
3.10 In case of change of role of the appraisee due to reason such as inter function transfer, promotion,
role enhancement etc. the new/updated Quantitative and Qualitative KRAs (as per the applicability) will
be assigned by the appraiser in the beginning of the forthcoming quarter.
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. 4: APPLICABILITY
The process of Performance Appraisal is applicable to the following category of employees and
has the given areas of emphasis:
Employee
Grade
Category
Quantitative
Qualitative KRA
KRA
Competency
Framework
Managers
A to MP
Yes
Yes
Yes
Executives
E1, T1, S1
Yes
Yes
Yes
Executives
E2 to E4, T2 to
Yes
Yes
Yes
T3, S2 to S3
Executives
E5 to E6
No
Yes
Yes
Sales
TSE to TSS
No
Yes
Yes
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5. GENERAL
5.1 The suggested distribution of performance appraisal ratings for all categories of employees
is as under:
Performance Level
Rating
No. of employees
Remarks
Excellent
05%
Exceeds expectations
Above Average/Good
25%
Meets or slightly
exceeds expectations
Satisfactory
65%
By and large meets

expectations and is a
current fit
Below Average
5%
Exit Plan
The above distribution matrix is only indicative in nature as such and the Management
Committee, depending on the needs and circumstances can vary it.
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6. Appendix:
6.1 Screen on Quantitative KRA setting window
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6.2 Screen on Qualitative KRA setting
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6.3 Screen on Self Assessment Quantitative KRAs
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6.4 Screen on Self Assessment Qualitative KRAs
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6.5 Screen of Competency Review
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6.6 Screen on Core Values Review
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6.7 Screen on Promotion Justification
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6.8 Screen on Developmental / Training Inputs
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Cultural Ethos
Vision driven organization
Employees feel pride in being part of the organization
Recognition of human resources as extremely important and critical assets
High level of human dignity
Transparency and openness among employees at all hierarchical levels
Performance-linked reward system
Management and employee commitment to organization values is high
Autonomy in work is high
High commitment to quality products
Open Door Policy:Working together requires that we have a friendly atmosphere based on trust and respect
amongst all of us.
At Nerolac we follow an Open Door policy. Any person is free and welcomed to share good
idea, suggestion, doubt, problem about job or work place, or uncertainties about ones future in
the organization. An open and transparent communication is appreciated.
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Corporate Values
Vision Values and Culture:In todays dynamic business environment, no organization can afford to survive without a wellarticulated and carefully thought vision stating the overall strategic direction and long-term
future of its business.
We have been at the forefront of paint manufacturing over eight decades pioneering a wide
spectrum of quality products that change the face of economy and lifestyles of people at large.
It is our vision to leverage global technology, for serving our customers with superior coating
systems built on innovative and superior products and world class solutions, to strengthen our
leadership in Industrial coatings and propel for leadership in Architectural coatings, all to the
delight of our stakeholders.
We firmly believe that it is not only the vision of where we wish to go which will form a
cornerstone of all our further growth, but also our conviction to the fact that the values based
proposition has to be ultimate foundation of our business.
To this end we consciously have internalized and been practicing these values in all our business
transactions though human beings:
Innovation
Entrepreneurial
Responsive
Simplicity
Team Orientation
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SOCIAL CONDUCT
Kansai Nerolac Paints Ltd, as a professional organization, encourages growth of individuals
irrespective of gender, religion, caste or community. Through all the policies, the organization
focuses on ensuring that no preferential or discriminatory treatment is meted out to anyone on
grounds of gender alone. The primary focus of this policy is to ensure a congenial work
environment that is free from threat or fear.
OBJECTIVE:
The objective of the policy is:
To ensure and emphasize that any verbal or physical conduct of any employee that
harasses, disrupts or interferes with anothers work performance or that creates an
intimidating, offensive or hostile environment, would not be tolerated.
To provide an appropriate complaint mechanism to redress the complaint made by the
victim.
To provide a conducive and productive environment in the workplace and to reaffirm
commitment to maintain work environment free from all forms of harassment and
discrimination.
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SCOPE:
The policy is applicable for all employees of the organization, which includes corporate
office, branches, depots and manufacturing locations etc.
The policy is applicable to non employees as well i.e. business associates, vendors,
trainees etc.
The policy is applicable to all the employees who have been a part of any such an issue, which
may have arisen during their tenure of service and includes preventive measures,
complaints procedure and redressal mechanism to deal with such problems.
DEFINITIONS:
Based on the guidelines given by the Supreme Court given below are details of what would be
considered harassment.
1.
Harassment:
Harassment is defined as conduct that is insulting, intimidating, humiliating, offensive or

physically harmful. Types of behavior which constitute harassment include, but are not limited
to: (a) Unwelcome jokes, innuendo or teasing about a persons looks, body, attire, age, race,
religion, sex or sexual orientation.
(b) Condescending, patronizing, threatening or punishing actions which undermine self esteem
or diminish performance.
(c) Practical jokes, which cause awkwardness or embarrassment, endanger a persons safety or
negatively affect performance.
(d) Unwanted or unnecessary physical contact including touching, patting or pinching.
(e) Any form of physical assault or abuse
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(f) Any sexual offence.
2. Sexual harassment:
Sexual Harassment, includes such unwelcome sexually determined conduct (whether
directly or by implication) as: Physical harassment:
(a) Physical contact and advances.
(b) Intentional touching, pinching, grabbing, brushing against another.
(c) Sexual assault
(d) Cornering, trapping or blocking a persons pathway.
(e) Excessively lengthy handshakes
(f) Any unwelcome physical or non -verbal conduct of sexual nature.
3. Verbal Harassment:
(a) Gestural harassment by way of making sexually suggestive or off colour comments,
innuendos, threat, slurs and sexual propositions including a demand or request for sexual
favours.
(b) Sexual jokes or sexually coloured / gender-specific remarks or jokes or teasing. (c)
Comments about appearance, especially parts of body
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Awards and Achievements:-
While we look to the future, it is important to bask in past glory. Nerolac has won many
accolades for its stupendous work in product development, environmental consciousness and in
being a responsible corporate citizen.
'Golden Peacock Environment Management Award 2005' for environment management of

Jainpur factory & DSIR National Award ACED for adaptation of technology to suit local
needs.
Short listed for the Best Managed Company award from Business Today & A.T. Kearney
2005.
Best Vendor Award from customers like Toyota Kirloskar Motors (TKML) for Cost & from
Maruti Udyog (MUL) on overall commendation.
Awards for Marketing initiatives like Cannes2007 Bronze for press Ad
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Emvies 2007 Gold & Silver for Best Media innovation, Best case study-Media
innovation(Impression Rang Zamade), Best Integrated Campaign, Best Media strategy &
Peoples Choice Award
Readers Digest Trusted Brands Gold Award for 2008
Frost & Sullivan Market Leadership Award in Indian Industrial Paints & Coating Market
Hall of Fame from CTO Forum, PC Quest & Best Implementation-APO in IT
Excellence in Corporate Governance from ICSI
Greentech Environment Excellence Gold & Silver for Bawal & Chennai units
Association of Business Communicators of India, Silver for Annual Environment Report.
Environmental Excellence Gold Award by Greentech Foundation for the Lote Plant for the year
08-09.
Nerolac Beauty Flexi won Product of the year award (2008-09) in the paint category.
Asia Manufacturing excellence Award (AMEA) conducted by Frost and Sullivan for Lote and
Jainpur Factories November 2009
Consolation prize in the Energy Conservation Awards by Tata Power November 2009
Our Technical Partners (NIPA Chemical Chennai), was awarded with TKMLs Best delivery
performance award. April 2009
Golden peacock Innovative Product/service Award for the year 2011 for Nerolac Impression
Ecoclean ultra Luxury Emulsion
Out Standing Company in Paints & Coatings sector for the year 2010 by EPC World Awards
2010
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Golden Peacock Award 2010 for most innovative product/service category for introduction of
3C1B technology of paint in the Automotive paint segment category. April 2010
Best Delivery Performance Award by Whirlpool India Ltd at Faridabad April 2010
Award for the Most Proactive Contribution through New Developments in Powder Coatings
by Godrej Appliances Ltd April 2010
Product of the Year Award 2010 for Nerolac Excel April 2010
Product of the Year 2011 for Nerolac Excel Total with Heat-guard Technology April 2011)
SAP Ace Award 2011 for the Best run Business in consumer and Trade Industry 2011
Sustainability Award for outstanding contribution by Mahindra and Mahindra - October 2011
Kansai Nerolac Paints rated at level 4 out of 5 in the Karmayogi ratings for the Corporate Social
Responsibility initiatives 2011
Best vendor PERFORMANCE AWARD in Paint Suppliers Category by Honda Motor cycles
and scooters at their annual conference Jan 2012
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KAIZEN impact Flow Chart
management
briefing and project
planning
education on kaizen process

team selection
baseline and objectives
project schedule
budget and resources
kaizen team training

and planning
training on kaizen process and tools

identify and prioritise important projects
work assignment
begin work
kaizen event
team presentation
and forward
planning
complete work assignment

implement improvements
document results
kaizen team presentation

tour of improvement area
forward planning and schedule for next kaizen event
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RESEARCH METHODOLOGY
INTRODUCTION:
Research is a term that stands for a careful investigation or enquiry especially through
search for new fact in any branch of knowledge.
Research Methodology is way to systematically solve the research problem. In it we
study the various steps that are generally adopted by a researcher in studying his
research problem along with logic behind them. We also need to understand the
assumption underlying various techniques and procedures will be applicable to certain
problems and other will not. So it is necessary for us to design methodology for the
problem as it differs from problem. So research methodology is not only method
research but also logic behind the methods we use in context of our research study and
explain why we are using a particular method or technique and why we are not using
others so that research results are capable of being evaluated.
Marketing research is the systematic design, collection, analysis and reporting of data and
findings relevant to specific marketing situation facing the company. An effective
marketing research involves following five steps in a sequential manner.
Defining the research objective.
Developing research plan
Collecting the information
Analyze the information
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Present the findings.
DEFINING RESEARCH OBJECTIVE

Objective is the main theme on which is my job is based. Research is a good planning
of facilities and welfare of procedure to complete in the market. The objective of the
project should be very precise; it should neither be very broad nor be very narrow.
For this research I defined the following objective:
To study the satisfaction level of employees with respect to their welfare in

KNPL, KANPUR and to suggest measures to strengthen this regime.
To study the practices, procedures & policies still to be satisfy to the employees
of KNPL.
DEVELOPING RESEARCH PLAN

The research plan is the main body or you can call the blue print in which we carry
the research. The research plans consist of data sources, research instruments, sampling
plan and contact methods.
1. DATA SOURCES:
a. Primary data:
Primary data are the data gathered for the specific research project and are directly taken
from the very source of information.
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Responses of employees through questionnaire.
b. Secondary data:
Secondary data are the data, which already exists and were collected for some other
purpose or for similar previous studies. Secondary data were proved to be instrumental in
structuring the questions to be asked for collecting primary data.
Various books on Human Resources.
Website of KNPL, www.nerolac.com
.
2. Research Instrument:
The two main research instruments in collecting primary data are:
A. Personal interview
B. Questionnaire
A. Personal interview
It is one of the important sources to collect primary data. Through personal
interview interviewer can ask question according to the research requirement. Data
which is collected by personal interview is more reliable than other sources.
B. Questionnaire
Questionnaire consist of a set of questions presented to the respondent for their
answer. Because of its flexibility the questionnaire is by far the most common
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instrument used to gather primary data. Questionnaire needs to be carefully

developed and tested before they are actually used on a large scale.
Questions are of two types:
Open ended
Close ended
Open Ended Questions: A type of question that requires participants to responds in his or her
own words without being restricted to pre-defined response choices is known as an open- ended
questions.
Close Ended Questions: Questions, which restrict the interviewees answers to pre-defined
responses options, are called close-ended questions.
SAMPLING TECHNIQUE: Simple Random Sampling.

Scale: 5- point scale
SAMPLING PLAN
After deciding on research and research instrument the researcher must design a sampling
plan. This plan calls for five decisions.
a) Sample population
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It is segment to Executive class and Non-executive class employees of KNPL.
b) Sampling Frame
Since the manpower of KNPL, KANPUR is 1989 of different grades, so the sample frame
is obtained accordingly.
c) Sampling Unit
The sample unit consists of all Executives and Non- executives of KNPL, Kanpur
d) Sample size
Though large sample give more reliable results than small samples. However, it is not
necessary to sample the entire population or even a substantial portion to achieve reliable
result. So after considering time constraint and cost effectiveness for the project total 50
peoples are surveyed.
.
e) Place of information
KNPL, JAINPUR PLANT
KANPUR
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Analysis of Data
After the data have been collected, the researcher turns to the task of anal yzing
them. The anal ysis of data requires a number of closel y related operations such
as establishment of categories, the application of these categories to raw data
through coding, tabulation and then drawing statistical inferences. The unwisel y
data should necessary be condensed into a few manageable groups and tables for
further anal ysis. Thus researcher should classify the raw data into some
purposeful and usable categories. In the process of anal ysis, relationships or
differences supporting or conflicting with origina l or new hypotheses should be
subjected to tests of significance to determine with what validit y data can be
said to indicate any conclusion.
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Kaizen Criteria and Methodology at KANSAI NEROLAC PAINTS Ltd

Proposed Value of
Kaizen criteria
Reward (Rs.) for the
Period / Frequency of Consideration
period 12-13
>= 50 < 150
( Kaizen points )
Rs.200
>= 150 < 300 ( Kaizen points )
Rs.600
Rs.1000
Rs.1500
>= 500
Rs.2000
On the basis of cumulative scores

Annually
( Kaizen points )
Highest No. of Gold (20 point)

Kaizens
a) Rs.500 Monthly
Highest No. of Silver (10 point)

Monthly
Kaizens
a) Rs.300 Monthly
Highest No. of Bronze (6 point)

Kaizens
a) Rs.100 Monthly
AET / CANDOs with Highest no.

of a)Number of Kaizens per
employee,
b)Gold Kaizens per employee,
Personal Appreciation - RS
400 to Kaizen coordinator
Annually
of AET and Rs. 600 to team
for small get together
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c) Silver kaizens per employee,

d) Bronze Kaizens per employee,
e) % operators' participation,
f) % Officers' participation,
g)% KM portal upload wrt total
Quality Kaizens,
Best Plant with Highest no. of
(plant kaizen coordinator)
a)Number of Kaizens per
employee,
b)Gold Kaizens per employee,
c) Silver kaizens per employee,
Annually(Only one gift interplant )
d) Bronze Kaizens per employee,

e) % operators' participation,
f) % Officers' participation,
g)% KM portal upload wrt total
Suitable gift as decided by
Quality Kaizens,
HO
Notes:
1. Monthly' reward is a one time reward for the performer in its category in that month and not recurring.
2. Annual reward is a one time reward for the performer in its category in that year and not recurring.
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On the basis of PDCA cycle and 5S kaizen work which are under follows
THE PDCA CYCLE
The cycle of Kaizen which I have researched in KNPL, JAINPUR activity can be
defined as:
Standardize an operation and activities.
Measure the standardized operation (find cycle time and amount of in-process
inventory)
Gauge measurements against requirements
Innovate to meet requirements and increase productivity
Standardize the new, improved operations
Continue cycle ad infinitum
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This is also known as the Shewhart cycle, Deming cycle, or PDCA. Other
techniques used in conjunction with PDCA include 5 Whys, which is a form of root
cause analysis in which the user asks "why" to a problem and its answer five successive
times. There are normally a series of root causes stemming from one problem, and they
can be visualized using fishbone diagrams or tables.
The Origins of 5S
5S was developed in Japan. It was first heard of as one of the techniques that enabled what was
then termed Just in Time Manufacturing. The Massachusetts Institute of Technologys 5-year
study into the future of the automobile in the late 1980s identified that the term was
inappropriate since the Japanese success was built upon far more than components arriving only
at the time of requirement. John Krafcik, a researcher on the project, ascribed Lean to the
collective techniques being used in Japanese automobile manufacturing; it reflected the focus on
waste in all its forms that was central to the Japanese approach. Minimised inventory was only
one aspect developed by Hiroyuki Hirano within his overall approach to production
systems. Many Western managers coming across the approach for the first time found the
experience one of enlightenment. They had perhaps always known the role of Housekeeping
within optimised manufacturing performance and had always known the elements of best
practice. However, Hirano provided a structure for improvement programs. He pointed out a
series of identifiable steps, each building on its predecessor. Western managers, for example, had
always recognised the need to decide upon locations for materials and tools and upon the flow of
work through a work area; central to this (but perhaps implicit) is the principle that items not
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essential to the process should be removed stored elsewhere or eliminated completely. By
differentiating between Seiri and Seiton, Hirano made the distinction explicit. He taught his
audience that any effort to consider layout and flow before the removal of the unnecessary items
was likely to lead to a sub-optimal solution.
Equally the Seiso, or cleanliness, phase is a distinct element of the change program that can
transform a process area. Hiranos view is that the definition of a cleaning methodology (Seiso)
is a discrete activity, not to be confused with the organisation of the workplace, and this helps to
structure any improvement program. It has to be recognised, however, that there is inevitably an
overlap between Seiton and Seiso. Western managers understood that the opportunities for
various cleanliness methodologies vary with the layout and storage mechanisms adopted.
However, breaking down the improvement activity in this way clarifies that the requirements for
the cleanliness regime must be understood as a factor in the design aspect of Seiton. As noted by
John Bicheno. Toyotas adoption of the Hirano approach, is 4S, with Seiton and Seiso
combined presumably for this very reason. The improvement team must avoid the trap of
designing the work area and then considering the cleanliness or tidiness mechanism.
Hirano also reminded the world of the Hawthorne Effect. We can all introduce change and while
people in the business consider the change program to be under management focus the benefits
of the change will continue, but when this focus has moved (as is inevitably the case)
performance once more slips. Western managers, in particular, may have benefited from the
distinction between the procedural or mechanical elements, Seiketsu, of keeping these matters in
focus and the culture change, Shitsuke, which is a distinct approach to bringing about a new way
of working. A number of publications on the subject in the West have questioned whether this
culture can really be tackled as part of an exercise of relatively limited scope.[5] The broader
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kaizen, or continuous improvement, approach is built, among other things, upon the companys
valuation of all members of the workforce. If employees dont feel valued within the overall
company culture, perhaps the change required falls outside the limits of a Housekeeping
improvement program.
The Objectives of 5S
Hirano identified a range of benefits from improved housekeeping, all of which can be regarded
as falling within the Lean portfolio that is, they are all based around the elimination of waste in
one form or another.
The most obvious benefit from items being organized in such a way (i.e. that they are always
readily available) is that of improved productivity. Production workers being diverted from
production to look for tools, gauges, production paperwork, fasteners, and so on is the most
frustrating form of lost time in any plant. A key aspect of Hiranos organisation approach is that
the often-needed items are stored in the most accessible location and correct adoption of the
standardisation approach means that they are returned to the correct location after use. Another
element of Hiranos improved housekeeping is improved plant maintenance workers owning
a piece of plant, responsible for keeping it clean and tidy, can take ownership for highlighting
potential problems before they have an impact on performance. (Of course, this brings with it the
interface with preventive maintenance and the need for clarity in the assignment map, that is
who does what. The division of tasks between production workers and specialist maintenance
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engineers varies with the nature of the business, but ownership rests within the business unit
rather than within the service provider.)
The next aim is Quality. The degree of impact of dirt in a manufacturing environment, obviously,
varies with the nature of the product and its process but there are few, if any, areas where dirt is
welcome. Even if it is only in the form of soiled documentation accompanying the goods to the
customer this can send a very negative message about the company and its culture. In other cases
dirt can have a serious impact on product performance either directly or indirectly, perhaps
through compromising the integrity of test processes. Of course, 5S does more than address dirt;
an inappropriate layout can result, for example, in product damaged through excessive
movement or through the use of tooling other than that defined as the standard. Standardisation is
a theme of Hiranos approach, overlapping to a considerable extent with, for example, that of
Ohno. A Standard Operating Procedure for tool certification is much easier to achieve if the tool
to be certified is always in a clearly-marked location.
Another goal is improved Health & Safety. Clear pathways between workbenches and storage
racks can minimise accidents, as can properly-swept floors. As with Quality, a well-organised,
clean and tidy facility lends itself more readily to standard practice. Hirano also described how
an environment in which the workforce has pride in their workplace can contribute to a
considerable extent in a number of ways including customer service. Improving the layout of the
facility merges with the concept of visual management; if workers can see the status of plant and
of work in the facility, thus removing the need for complex tracking and communication
systems, then benefits will accrue. 5S can also be a valuable sales tool when potential customers
visit; a well-organised, clean and tidy facility sends a message of a professional and wellorganised supplier.
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One point made by all practitioners is that the adoption of 5S must be driven by goals. An article
in the journal of the UKs Institute of Operations Management written by Mark Eaton and Keith
Carpenter of the Engineering Employers Federation noted that the successful implementation
of 5S requires that everyone understand why it is being used and what the expected results are.
As with all Lean techniques the aim is improvement in business performance; the adoption is not
an end in itself..
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5S are as follows
Phases of 5S
There are five primary 5S phases: sorting, straightening, systematic cleaning, standardizing, and
sustaining. On the basis of all these 5S best kaizen is been selected at KNPL.
Sorting (Seiri)
Eliminate all unnecessary tools, parts, and instructions. Go through all tools, materials, and so
forth in the plant and work area. Keep only essential items and eliminate what is not required,
prioritizing things per requirements and keeping them in easily-accessible places. Everything
else is stored or discarded.
Stabilizing or Straightening Out (Seiton)

There should be a place for everything and everything should be in its place. The place for each
item should be clearly indicated. Items should be arranged in a manner that promotes efficient
work flow, with equipment used most often being the most easily accessible. Workers should not
have to bend repetitively to access materials. Each tool, part, supply, or piece of equipment
should be kept close to where it will be used in other words, straightening the flow
path. Seiton is one of the features that distinguishes 5S from "standardized cleanup". This phase
can also be referred to as Simplifying.[1]
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Sweeping or Shining (Seiso)

Clean the workspace and all equipment, and keep it clean, tidy and organized. At the end of each
shift, clean the work area and be sure everything is restored to its place. This makes it easy to
know what goes where and ensures that everything is where it belongs. Spills, leaks, and other
messes also then become a visual signal for equipment or process steps that need attention. A
key point is that maintaining cleanliness should be part of the daily work not an occasional
activity initiated when things get too messy.
Standardizing (Seiketsu)
Work practices should be consistent and standardized. All work stations for a particular job
should be identical. All employees doing the same job should be able to work in any station with
the same tools that are in the same location in every station. Everyone should know exactly what
his or her responsibilities are for adhering to the first 3 S's.
Sustaining the Practice (Shitsuke)

Maintain and review standards. Once the previous 4 S's have been established, they become the
new way to operate. Maintain focus on this new way and do not allow a gradual decline back to
the old ways. While thinking about the new way, also be thinking about yet better ways. When
an issue arises such as a suggested improvement, a new way of working, a new tool or a new
output requirement, review the first 4 S's and make changes as appropriate.
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RESEARCH WHICH IS BEEN DONE AT KANSAI NEROLAC PLANT

LIMITED
KAIZEN is an activity which every person employed in a company can do while giving
suggestions on daily basis or weekly or any change which a person can bring into the PLANT
that can lead in progress of KNPL. KAIZEN is mandatory done every month in KNPL so as to
motivate workers, employees by giving them rewards for giving best ideas that are successfully
implemented in KNPL and have lead to reduction in cost or time and have increased the moral
of workers by doing so .
While doing analysis in KANSAI NEROLAC regarding KAIZEN implementation in plant and
awareness in employees, contracters, operators and labours, taking a sample of 100 workers
and asking them do they know about KAIZEN?
The answer which I got from them was 50-50. 75% workers including labour said they do not
know what is this KAIZEN.
5% said they know about KAIZEN but do not initiate in this due to lack or shortage of time or
due to work load in production department.
20% said they are very well aware about this terminology and actively participate in this activity
and have gained rewards too in form of gifts, cash prize etc
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To over come this problem some step have been formed so that KAIZEN can be easy going for
each and every worker of the company:-
Finding Time for Kaizen Events
Work overtime to recover lost production
Reroute production to other area
Perform the event over a weekend
Run the event early in a production period
Finish period production early and then run the event
Take advantage of a slow time
Outsource some production to buy time
Run the event concurrent with production
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Basically the research work which has been done at KANSAI NEROLAC PAINTS
Ltd is if a contractor, officer, or any employee of a company make any KAIZEN and
implement it then under which THRUST area it will be kept and according to that under
which point category that will be categorized some of the KAIZENS are under
follows:-
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Research agenda: Identification of top- 3 Kaizen

Basically the research work which has been done at KANSAI NEROLAC PAINTS Ltd is if a
contractor, officer, or any employee of a company make any KAIZEN and implement it then
under which THRUST area it will be kept and according to that under which point category that
will be categorized some of the KAIZENS are under follows:-
Periodicity:
Financial year 2012-2013
First step short listing:

1. Kaizen date: Jan 13
Name: Mr. Praveen kumar Mishra
Employee code: 22361
Section: Engg.
Kaizen: modifying total design of NPA vessel and using old gear box with motor to
develop a CATALYST Tank in old resin.
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2. Kaizen date: Jan 13
Name: Mr. Karan Singh
Employee code: WJ00018
Section: NWB
Kaizen: ext, primer wt/10lt changed from higher (14.55) to 14.44 with help of FPE to
control yield abnormality.
3. Kaizen date: Feb 13
Name: Mr. Sushil kumar Dwivedi
Section: New resin
Kaizen: develop methodology so that we can use distilled fatty acid in winter also.
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4. Kaizen date: Mar 13
Name: Mr. Sudheer Dwivedi
Employee code: WJ119
Section: NWB
Kaizen: colourant productivity increases from 77lit/manday to 99lit/manday by reducing

44 contract workmen, also NVA reduction by 45 min through lock and key arrangement
for stamp and carton block.
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Final Stage Of Shortlisting:
On the basis of THRUST area and kaizen criteria by analyzing practically and consulting
there particular area operators, workmen, and respected HOD of consulting department,
on the basis of cost saving in a particular change which have been done, time saving and
from the safety point of view best 3 kaizens have been selected
1. Name: Mr. Sudheer Dwivedi
Employee No: WJ119
Section: NWB
Kaizen: colourant productivity increases from 77lit/manday to 99lit/manday by

reducing 44 contract workmen, also NVA reduction by 45 min through lock and key
arrangement for stamp and carton block.
Prior stage: 1 hopper is of 600 ltr was filled by 6 workers.that was manually
without machine.
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Verified by: S.C MEENA (HOD)
Post stage: Tried to reduce manpower slowly by 5 persons and then by 4 and now
finally 3 workers are filling hoper in same time without any stoppage.
Benefits: 1 shift= 2 batch reduced by 2 persons. Therefore 3 shifts = 6 persons

reduced.
Cost saved, productivity also remained same.
Kaizen Quality: Gold
2. Name: Mr. Praveen kumar Mishra
Section: Engg.
Kaizen: modifying total design of NPA vessel and using old gear box with motor to
develop a CATALYST Tank in old resin.
Prior stage: healthy plate catalyst was heated due to which fire incident took place
Verified by: Praveen kumar Mishra (HOD)
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Post satge: modified total design of NPA vessel due to which risk of fire incidents
vanished.
Benefits: safety increased
Kaizen Quality: Gold
3. Mr. Sushil kumar Dwivedi
Section: New resin
Kaizen: develop methodology so that we can use distilled fatty acid in winter also.
Prior stage: fatty acid use to be very thick in winters and sale of that product is also
in season of winters due to which it was hard to fill containers because the vessel in
which fatty acid was stored is of iron. Due to which it was unable to move through
pipes to the containers, due to this company started loosing some of there customers
due to late delivery time.
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Verified by: Manish Mishra (HOD)
Post stage: they opened the vessel between 11 to 3pm in bright sun in winters and
started rotating the fatty acid by opening the mouth of vessel completely, no barriers
were there to stop acid to move with the help of attaching temporary pipe to it and
pipe mouth use to be inside the vessel so that from one end it can come outside and
from other end it can move inside the vessel. These steps were repeated again and
again, due to which due to pressure from above acid begin to melt slowly, and then
putted the containers to be filled slowly and steadly. This whole process cost only
3000/- for 3 months only.
Benefits: saved Rs in crores which a whole vessel cost by buying a new one whose
life is approx 60 years but by investing Rs 3000 for 3 months in winter season and
that too for 30 years will cost only Rs 18000/-. Delivery improved, customer
satisfaction gained once again.
Kaizen quality: Gold
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Findings
A Kaizen event is a focused and structured improvement project, using a dedicated crossfunctional team to improve a targeted work area, with specific goals, in an accelerated
timeframe. During the relatively short timeframe of the event (generally 3 to 5 days), Kaizen
event team members apply low-cost problem solving tools and techniques to rapidly plan and,
often, implement improvements in a target work area. Evidence suggests that Kaizen events have
become increasingly popular in recent years as a method of rapidly introducing improvements. In
particular, Kaizen events have been associated with the implementation of lean production. In
fact Kaizen events apparently originated with Toyota, which used this method to train its
suppliers in lean production practices during the 1970s. what I founded was Kaizen events have
resulted in substantial improvements in key business metrics, as well as in important human
resource outcomes. however, despite their popularity and apparent potential for creating
improvement, there is a lack of systematic research on Kaizen events. There is no systematic,
empirical evidence on what sort of Kaizen event designs may be most effective for achieving and
sustaining improvements in business performance or human resource outcomes in KANSAI
NEROLAC PAINTS Ltd
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CONCLUSION
Majority of the respondents are working in KNPL for 50 & more than 50 years so
that the data collected from them is more reliable and evident.
The medical facilities are good but it needs to take steps for better improvement.
The canteen facility provided by the organization is not satisfactory. Maximum of the
employees are not highly satisfied with the food quality & maintenance of the canteen
& mess.
The overall welfare amenities provided by KNPL are satisfactory, it means that the
organization provide a good standard of amenities for the welfare of its employees.
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SUGGESTIONS
Although KNPL, Kanpur
is always committed towards their employees and their
families but then also I would like to give some of the suggestions.
The transport facilities (shift buses) provided by KNPL to the employees for coming
factory and for go home.
The recreational facilities should be enhanced by management for both executives & nonexecutives.
Medical facilities required high efficiency in rendering services.
The overall welfare amenities provided by KNPL, Kanpur require proper check & review time
to time.
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Limitations of Study
1. Kaizen relies upon staff participation; who meet regularly to suggest improvements to the
way work is carried out.
2. It is cheap method of developing ideas and techniques that can have a massive impact
upon the business
3. Some changes can not be introduce gradually
4. Management must embrace impowerment- authoritarian managers would find kaizen
difficult to accept
5. Short-term cost would be incurred . eg staff training, and downtime to allow meeting to
occur.
6. Kaizen tends to produce the best changes quickly but after this period it can become less
useful.
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KAIZEN Vs ONE-OFF Improvement
Labour
productivity
continuous improvement
one-off improvement
time
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Questionnaire
A. CONTACT DATA
1. Name of participant: .
2. Job title:
3. Company and address: ..
4. Phone number:
5. E-Mail: .
6. What is the exact designation of your unit (company, plant, ) you are participating with in
the study?
(hereafter always designated as plant)
______________________________________________________________________________
______________________
7. State your plants two most important products:
______________________________________________________________________________
______________________
8. Do you wish to apply for one of the AWARDs for your plant?
(You will receive the results of the study even if you do not apply for the AWARD.) YES/ NO
B. STRUCTURAL DATA
YES/ NO
9. How many employees work at your plant?
Ans.
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10. What is the percentage share of temps (temporary workers, etc.) in production-related
departments?
Ans.
11. What was your plants revenue in the last business year?
Ans.
12. What percentage of your revenue stems directly from enterprises in the automotive industry?
%
Ans.
13. What percentage of your total volume is delivered by the following ways to the customer?
a. Batch %
b. Just in Time (JIT) %
c. Just in Sequence (JIS) %
C. LEAN PHILOSOPHY AND SYSTEM APPROACH
How far along are you on the way to a lean company?
YES NO
14. Since when (year) have you been introducing lean principles and tools to an appreciable
extent?
Ans.
15. Rate your progress in introducing lean practices; what phase are you in now? (one response
only please)
a. The planning stage we have yet to introduce lean principles
b. The early phase we have launched pilot projects and achieved some positive results
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c. Extensive introduction the initiative is underway and we have applied lean principles and
practices to many areas and achieved solid progress
d. Advanced implementation most lean practices have been introduced comprehensively
e. Almost all employees, department heads, and managers understand, abide by, and act
according to lean principles
16. Which statement applies to your plant? (one response to each statement please) YES / NO
a. We can quantify the benefits of introducing lean production
b. We can quantify the costs of introducing lean production
17. Factors that limit the introduction of lean production are (one response only to each
statement please):
a. Employees do not have enough time for this
b. Employees willingness to deal with lean production
c. Financial resources
d. Existing machinery
e. The plants current layout
f. Other
reasons________________________________________________________________________
_____
g. There are no limiting factors at our plant
18. How many suggestions for improvement are submitted per employee and year?
Ans.
19. According to your estimation, where do you see your position at the following long term
topics? (please state positive in 0-100 percent)
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a. DEVELOPED
b. IMPLEMENTED
D. MEASURMENT OF MATURITY AND IMPLIMENTATION STATE
YES/ NO
20. Do you measure the maturity level of your production system?
Ans.
21. How do you mainly measure the maturity level? (one response only please)
a. Internal audits
b. Audits executed by external personnel
22. Are you using special performance indicators to measure the maturity level?
If yes,
which?________________________________________________________________________
_____
23. How important are the following lean-fields at your plant?

a. UNIMPORTANT
b. NOT SO IMPORTANT
c. IMPORTANT
d. VERY IMPORTANT
E. VALUE STREAM PERFORMANCE
The Value Stream Performance describes the ability to let material flow. It is an important
adjusting lever for the success of the company.
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24. How many days supply (own + consigned) of finished goods do you maintain on average?
Ans.
25. How many days supply (own + consigned) of raw materials do you maintain on average?
Ans.
26. How frequently do you produce your A products? (One answer only please) YES/ NO
a. Several times a day
b. Every day
c. Every third day
d. Every week
e. At intervals greater than weekly or irregularly
f. Unknown
27. What is your suppliers customer service level from your perspective? (order placement
date,delivery date) %
Ans.
F. TREND
Stagnation in lean leads to relative decline in performance. Lean needs to be
continuously developed and
transferred to other areas.
YES NO
28. How do you regard the importance of lean in the future?
a. Decreasing
b. Constant
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c. Increasing
29. What are the future topics at your company in terms of lean? (please name)
______________________________________________________________________________
_____________________
______________________________________________________________________________
_____________________
30. Where do you see the challenges of the future in terms of lean? (please name)
______________________________________________________________________________
______________________
______________________________________________________________________________
______________________
31. Is management sufficiently aware of the current status of and developments in lean practices?
(Lean Development, etc. ) YES/ NO
G. LEAN DEVELOPMENT
The extension of the development focus to the whole value chain will be an increasing
factor for success in the future.
NOT CORRECT AT ALL
NOT QUITE CORRECT
GENERALLY CORRECT
ABSOLUTELY CORRECT
How correct are the following statements?
32. We already have a lean development system..
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33. We are using proactive supplier management that integrates the suppliers into the product
development process (PDP) at an early stage
34. The PEP is throughout fully focused on the customer value and requirements. Methods like
QFD are applied consistently..
35. There is a explicit project organisation with clear assignment of competences and
responsibility.
36. There is a multi-project-organisation
37. We have a distinct variant and complexity management
38. Efficient risk management is applied during the development stage..
39. An efficient knowledge management system is installed. All project data is centrally
organized at a high level of standardization
40. After each project completion there is a systematic lessons learnt process..
41. Where are the causes for disturbances at your production start-ups?
a. Customers
b. Internal
c. Suppliers
42. To what extent do you assess the effects of an added variant?
COMPREHENSIVELY
a. PARTIALLY
b. NOT AT ALL
c. concerning costs
d. concerning functionality/mountability
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e. concerning logistics (e.g. stock, area, lead time, packaging)

f. concerning quality/warranty and goodwill costs
g. concerning complexity (e.g. overhead, change management)
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REFERENCES
Books: Aswathappa K- Human Resource And Personnel Management, Tata McGraw-Hill

Education, 5th Ed., 2009
Kothari C.R.- Research Methodology, New Age International Publisher,
2nd Edition
The reason behind my successful completion of the project are given as following:1. The Toyota way
2. www.nerolac.com
3. Mr. Debashish Roy ( Asst. HR manager, KNPL)
4. Asst, Prof. Mrs. Tulika Saxena ( STEP-HBTI)
5. Mr. Satyendra Singh ( HR officer, KNPL)
These were the websites and I am very thankful to my mentors who helped me to
complete my project report.
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2013

Exploring the Concept of

KANSAI NEROLAC PAINTS LTD. | KANPUR

SCIENCE AND TECHNOLOGY ENTREPRES PARK

DATE: 15 JULY 2013

1. About the Kaizen

2. Objective of Kaizen study

4. Rewards and Recognition Policy

8. Kaizen Impact Flow Chart

9. Kaizen Criteria and Methodology

12. Research Work and Its Agenda

14. Conclusion and suggestions

15. Limitations of Study

ABOUT THE KAIZEN

preferential treatment. Ideas found to have merit are quickly

Objective of the study

When Are Kaizen Events Appropriate?

Need for solution is urgent

High customer dissatisfaction

Big impact projects

Significant impact on sales or profits

Cannot tolerate prolonged disruption

Selecting Candidates for Kaizen Events

Strategic goals of the organization

Feasibility (difficulty, resources required, probability of success)

Selecting the top few candidates

Decision matrix (sample available on request)

Selecting the Pilot Event

a. High likelihood of success.

b. Results will be highly visible.

c. Makes a significant impact to the organization.

d. Solves operational problems, not management issues.

e. Area has a stable current process.

Preparing For the Event

Select team sponsor

Select team leader

Choose the facilitator

Choose team participants

Develop the team charter

Gather data prior to the event

Prepare the organization

Records important results, actions, & decisions

Promptly distributes minutes to participants

Usually a team member

Traits of Good Participants

Understands the target area

May work in area

Can learn the area

Open to doing things differently

Will get involved

The Kaizen Team Charter

Team Charter clearly identifies rules of operation

Resources available (budget, assistance, etc.)

Authority of the team (and its limits)

Code of Conduct (developed at kick-off meeting)

_ Created by leader and approved by team

Before 1st Team Meeting

1. Gather detailed information in advance

5. What is produced and how much?

6. Cycle and queue times

7. Batch sizes & changeover frequency

10. Number of operators

11. Photos and layout of target area