KAIZEN FROM START TO FINISH? Vinay Goyal 2 Disclaimer This - PDF document

11/18/2013 1 “KAIZEN FROM START TO FINISH?” Vinay Goyal 2 Disclaimer • This presentation has nothing to with my current employer and its internal practices. • I will try to avoid sharing names and internal practices of my previous companies during my presentations (unless they no longer exist) • All of the companies I worked for or with were successful companies in their respective fields • A copy of this presentation will be posted on Section website • Part I and II presentation slides are already posted on section website • http://asqorangeempire.org/ 1

11/18/2013 3 Presentation Outline • Due to the nature of the topic: • This was a Three part Presentation • Part I: (In August Clinic) • What is Kaizen? • What are the key definitions, terminologies that are commonly used with Kaizen? • Part II and III (In September and October Clinic) • Kaizen Planning • Management Support • Team Building • Implementation • Part IV Additional • Case Studies and • More case studies • Achievements and Lessons learned 4 Those who have been part of the Kaizen • This is an interactive session • Please feel free to share your success (or “lesson learned” ) story • If you have any questions, please feel free to discuss, email me at vinaygoyal@sbcglobal.net • Those who are new to Kaizen • Please feel free to ask questions • We have 2 guest presenters today • James McNamara – slides cannot be shared • Bhavna Mantha – slides are included 2

11/18/2013 5 Any Questions from the Previous Clinics ? • August, September and October Clinic Presentation • Slides are posted on section website • If you have any questions, feel free to discuss with me • Last month someone from the audience made a statement that the quotation “ You must be the change you want to see in the world” was not from great Indian Philosopher and Leader Mahatma Gandhi • Indeed the guest presenter was correct. This classic quotation is from Mahatma Gandhi. • “You may never know what results come of your action, but if you do nothing there will be no result” 6 Quick Review • Literal meaning of Kaizen is • Good Change (IN English: Improvement) • We can call it Continuous Improvement or Japanese Philosophy • Kaizen is a • A Mindset, • An approach, • A conviction, • A way of thinking 3

11/18/2013 7 Quick Review • Kaizen ( good change ) has no boundaries • It can be applies at • Home • Personal life • Any kind of business environment • Relationship between two countries • Technology • Healthcare • Environment • War and Peace • Literally every where 8 Quick Review • Does Kaizen mean to improve bottom line results • In CEO’s or CFO’s terms • $$$ • No, it is to bring a change and to make it good (or good change) • Good change does not always mean $$$ • Good change can be: • Improve efficiency • Automation • Customer satisfaction • GPS, Power windows, Alarm as standard item in cars • Improve Safety • Human and Environmental 4

11/18/2013 9 Quick Review • Improve efficiency • Automation • T ransportation, • I nventory Management • M otion of the Operators, • W ait • O ver-processing • O ver-production • D efect • Short term automation is expensive but long term it will be more economical • Customer satisfaction • Seismic compliance, waste water analysis, User friendliness • Improve Safety • Human and Environmental • Less burden on medical cost, less burden to keep you healthy and therefore on the society 10 Quick Review • Unfortunately short and long term Kaizen results (gains) in CEO or CFO terms $$$ are so small or transparent that they often go un-noticed • People do not get due recognition • No incentive to do a good job • Employees stop sharing improvement ideas • Instead of being a leader, they become a follower and start depending on instructions from someone • Attitude becomes: You tell me what do you want and I will get make it happen • Leaders (sitting in their offices) start making decisions • Putting unrealistic demands on employees • Making policies and procedures that are confusing , and not easy to follow • Start thinking that people who carry out the work • Either do not have ideas or • Not worth to ask for their opinion 5

11/18/2013 11 QUICK REVIEW • Examples • 1993 – I was new to Quality (from Design, test Engineering, Customer Service to Reliability) • ISO 9000 • About 300 employees, 3 shift, 24/7 operation • Not all, but some procedures were there but either • They were like show piece • Never revised or updates since their first draft • Did not match with the current practices • Did not include changes • Did not cover everything they do • Surprisingly • There were no drawing controls • Multiple revisions were floating around • People were using redlines that were incorporated long time ago 12 QUICK REVIEW • First and foremost • We got an approval (blessing) from the CEO and other senior executives • Quality starts from the top (and from the middle or bottom) • Formed a core team (cross functional) • Standing meeting to monitor progress • Looked for Quality manual, procedure, work instructions, records • We need for ISO 9000? • What we have? • Gap Analysis… • Manager were assigned to write the procedures and work instructions for their respective areas • It was a disaster 6

11/18/2013 13 QUICK REVIEW • Why it was a disaster? • They were very high level and most idealistic procedures you could imagine on the face of this earth • Did not match with the current processes • Often Managers could not explain their own procedures • So, I spoke with the CEO • Hired a writer • Met with each department supervisor and leads • Asked them to write down their processes in simple words and sentences • Technical writer was asked to keep them to 6 grader English • Review with rest of the department employees • Made a few changes – released them 14 QUICK REVIEW • In less than a month • We have had • Quality Manual • Procedures • Work Instructions • Record forms • Since they were developed by the people on the production floor (or really carry out the work, training was just minimal) • In three months we called the registrar for a full audit • With just over a month’s records • We passed the audit (with a long list of minor findings) 7

11/18/2013 15 QUICK REVIEW • Lesson learned • Review the requirements – what applies to you • Have a vision for the most perfect and idealistic goal (perfection) • But at some point get out never ending discussion and planning mode • Start Taking action • Small increments (Kaizen approach) with a clear vision for perfection one day • Try in small parts, see if it works • If it does, expand it • If not, take a different approach • Include people from all areas • Cross functional • Top to bottom • Get the fear out – let the people speak up their mind • Recognize for good idea – even your worst enemy 16 Key Things to Remember about Kaizen • Quality starts from the top • You need executive approval • However you can improve anything within your control –starting point • Always keep looking and analyzing how things can be improved • Short term (with current resources), Long Term (with some significant resources requirements) • The way things are done today can be improved • May be in overall picture this is not a top priority but do not let it go from your radar screen – balance out your resources (business decision) • Low hanging fruits – require minor changes • Justify in terms of $$$ (short and long term) - ROI 8

11/18/2013 17 Key Things to Remember about Kaizen • Impress your immediate boss • Do not wait for instructions (take the lead in changing anything that is within your control for a good change) • Your action should speak for itself • Do not get dis-hearted • You may not get the right recognition • Someone else may take the credit for your work • If it is your idea and thought, someone will recognize your efforts sooner or later – you can speak with passion and confidence to • Your management • Potential employer • Like I am standing in front of you • You may agree or disagree, but that worked for me and therefore I am sharing with you 18 Key Things to Remember about Kaizen • Include everyone • Who are directly and indirectly related to that process • Top to bottom • Leave your ego and preconceived idea at the door • Be a good listener and observer • Welcome thoughts and idea • Let other people feel (those who are shy) feel comfortable to share your view in public or private • Give due credit • Recognition is more valuable than monetary reward • Learn how to run meetings • Forming, storming, norming and performing • Conflict resolution, how to discipline/limit distracting members 9