into designing characteristics (“counterpart characteristics”)
and deploy them into such subsystems as
components
parts
production processes
Regarded as the most significant development to come out of TQC in the last 30 years
Q seven and the New Seven
Tools that have made an indispensable contribution to the constant evolution and improvement of the Total Quality Control movement
The seven statistical tools (Q seven)
The new seven
Results-oriented management
Emphasizes
Controls
Performance
Results
Rewards (usually financial)
or denial of rewards and even penalties
Criteria are easily quantifiable and short term
Western style management emphasizes R Criteria almost exclusively
SDCA cycle (Standardize, do, check, action)
a refinement of the PDCA cycle
Management decides first to establish the standard before performing the regular PDCA function
Seven-up campaign
a Nissan slogan
Standardized work
the optimum combination of workers, machines, and materials
Standards
A set of … established by management
Policies
Rules
Directives
Procedures
For all major operations
Serve a guidelines that enable all employees to perform their jobs successfully
Suggestion system
A highly integrated part of individual-oriented KAIZEN
It’s design is as carefully … as a company’s strategic plan
Plotted
Implemented
Communicated
Scrupulous attention is paid to …
Top management’s responsiveness
Developing a system of feedback and rewards
Japanese-style suggestion systems emphasize
Morale-boosting benefits
Positive participation
Western-style systems stress financial & economic incentives
6 million suggestions submitted to Matushita in 1985
TPM (Total Productive Maintenance)
Aims at maximizing equipment effectiveness throughout the entire life of the equipment
Involves everyone in all departments and at all levels
Motivates people for plant maintenance
Small-group and voluntary activities
Involves
Developing a maintenance system
Education in basic housekeeping
Problem-solving skills
Activities to achieve zero breakdowns
Top management must design a system that recognizes and rewards everyone’s ability and responsibility for TPM
TQC (Total Quality Control)
organized KAIZEN activities involving everyone in a company
a totally integrated effort toward improving performance at every level
This improved performance is directed toward satisfying such cross-functional goals as …
Quality
Cost
Scheduling
Manpower development
New product development
It is assumed that these activities ultimately lead to increase customer satisfaction
Also called CWQC (Company-Wide Quality Control)
University of Labor
the Japan Productivity Center has a program for educating union executives in the sound concepts of business management
so they can better negotiate with management
Visible Management
The technique of providing information and instruction about the elements of a job in a clearly visible manner
so that the worker can maximize his productivity
kamban is an example of this technique
Warusa-kagen
a term in TQC that refers to things that are not yet problems
but are still not quite right
Left untended they may develop into serious problems
Often the starting point of improvement activities
worker often notices warusa-kagen first
The first echelon of maintenance and improvement
Foreword by Chairman of supervisory board of Philips’
Japan’s phases
Absorption of technology
Productivity drive
Quality improvement program
Manufacturing flexibility
Capability to adapt manufacturing in a very short time to changing customer and market requirements
Key words
Mechanization
Automation
Robotization
Related systems
Multinationality
Improve everything
Japan’s improvements
Productivity
Quality
Flexibility
Multinationality
The Dutch example
Cultural differences
Reciprocity is the key to our joint survival
The KAIZEN challenge
KAIZEN is the key to Japanese competitive success
Has become a subconscious response
Differences between Japanese and Western approaches to management
Process-oriented way of thinking
Innovation and results-oriented thinking
The climate in which it flourishes
KAIZEN, the concept
KAIZEN means ongoing improvement involving everyone
KAIZEN values
Western vs. Japanese
Change - gradual vs. abrupt
KAIZEN means ongoing improvement involving everyone
Philosophy - our way of life deserves to be constantly improved
KAIZEN umbrella that covers many other concepts
Customer orientation
TQC
Robotics
QC circles
Suggestion system
Automation
Discipline in the workplace
TPM
Kamban
Quality improvement
Just-in-time
Zero defects
Small group activities
Cooperative labor-management relations
Productivity improvement
New-product development
Not a day goes by without some kind of improvement being made somewhere in the company
A process-oriented way of thinking and developing strategies that assure continuous improvement involving people at all levels of the organizational hierarchy.
KAIZEN and management
Job functions and standards
<picture>
Maintenance
Activities directed toward maintaining current … standards
Technological
Managerial
Operating
Management performs its assigned tasks so that everybody in the company can follow the established SOP (Standard Operating Procedure)
Management must
Establish … for all major operations
Policies
Rules
Directives
Procedures
See to it that everybody follows SOP
If able but not then discipline
If unable
Provide training
Revise standard
Improvement
Broken into …
KAIZEN
Small improvements made in the status quo as a result of ongoing efforts
Innovation
Drastic improvement in the status quo as a result of a large investment in new technology and/or equipment
Must maintain and improve standards
Establishing higher standards
Lasting improvement is achieved only when people work to higher standards
Activities directed toward improving current standards
Hierarchy of KAIZEN involvement (See fig 1.6)
Top management
Middle management and staff
Supervisors
Workers
Implications of QC for KAIZEN
Concern for productivity & quality
How to define
How to measure
How to relate it to benefits
No matter what the substance of quality and productivity the other side of the coin has always been KAIZEN.
KAIZEN is a problem-solving process
Recognize a problem
Solve the problem
Using tools
Requires standardization
Clarification of terms connected with KAIZEN
Quality
No agreement
Anything that can be improved.
Products and services
The way
People work
Machines are operated
Systems and procedures are dealt with
All aspects of human behavior
Improvement of everything
History of the quality movement in Japan (Deming & Juran)
QC circle blown out of proportion
Over the years QC has be elevated to SQC and then to TQC or CWQC, improving managerial performance at every level.
KAIZEN and TQC
TQC undergoes perpetual change and improvement
Typical issues dealt with in Japan
See chapter 3
KAIZEN and the suggestion system
A part of the KAIZEN program
A great number of suggestions
Toyota 1.5 million per year
95% are put to practical use
Management works hard to consider these suggestions
Play a vital role in upgrading standards
Suggestions set a new standard by the worker’s volition
Employee takes pride in the new standard
KAIZEN and competition
Competition
Driving forces
Price
Quality
Service
Competition for larger market share
Through the introduction of new and more competitive products
By using and improving the latest technologies
Japanese companies are now even competing in introducing better and faster KAIZEN programs
KAIZEN ensures that there will be continuous improvement for improvement’s sake
Once the KAIZEN movement has been started, there is no way to reverse the trend
Process-oriented management vs. Result-oriented management
KAIZEN generates process-oriented thinking
Processes must be improved before we get improved results
KAIZEN is people-oriented
KAIZEN is directed at people’s efforts
Process oriented (P) criteria vs. Result-Oriented (R) criteria
<picture>
The manager’s role
Difference between P criteria and R criteria
What kind of P criteria?
R criteria
Sales
Cost
Profit figures
A process-oriented manager who take a genuine concern for P criteria will be interested in:
Discipline
Time management
Skill development
Participation and involvement
Morale
Communication
Improvement East and West
KAIZEN vs. Innovation (1)
Two contrasting approaches to progress
Gradualist
Great-leap-forward
Comparison of the main features of KAIZEN and of innovation
To implement
KAIZEN
Simple, conventional techniques
Common sense
Innovation
Highly sophisticated technology
Huge investment
Innovation is supposed to bring about progress in a staircase, but it usually does not
Innovation alone
<picture>
Innovation plus KAIZEN
<picture>
KAIZEN
Standards are tentative
Solve one problem after another
Substantial management commitment
KAIZEN vs. Innovation (2)
Total manufacturing chain
<picture>
Another comparison of Innovation & KAIZEN
<picture>
Western and Japanese product perceptions
<picture>
Upcoming Japanese product perceptions
<picture>
Cost improvement
<picture>
Improvements in
Materials and production engineering
Technological improvement does not seem to require a Ph.D.
Once a new technology has been identified
The effort must be increasingly directed at such areas as … all requiring doggedly tenacious efforts
mass production
cost reduction
yield improvement
quality improvement
The problems of how American engineers are utilized & the engineers’ own perception of his job p36
Don’t want to work on anything other than state of the art innovations
KAIZEN and Measurement
Productivity and quality control are measures for checking results and not reality
What is reality & what has to be done?
Efforts put in to improve both productivity and quality
Contrasting R vs. P criteria
When the manager is looking for a specific result, such as quarterly profits, productivity indices, or quality level, his only yardstick is to see whether the goal has been achieved or not.
On the other hand, when he uses process-oriented measures to look into the efforts for improvement, his criteria will be more supportive and he may be less critical of the results, since improvement is slow and comes in small steps.
Establish rapport with workers
Speak their language
Sharing
Caring
Commitment
KAIZEN requires rituals
Reporting meetings
Benefits of KAIZEN may be felt in 4-5 years
Different kind of leadership
Personal experience
Conviction
Not necessarily on
Authority
Age
Rank
KAIZEN a truly satisfying experience
Identifying problems
Thinking and learning together
Tackling and solving difficult tasks
Being elevated to new heights of achievement
KAIZEN by Total Quality Control
Quality control deals with the quality of people
Japanese vs. Western approaches to quality control
Key phrases in TQC Concept
Speak with data
Quality first, not profit first
Managing the previous process (managing upstream)
The next process is the customer
Customer-oriented TQC, not manufacturing-oriented TQC
TQC starts with training and ends with training
Cross-functional management to facilitate KAIZEN
Follow the PDCA cycle (A continuation of the Deming wheel)
Use the QC story to persuade
Standardize the result
KAIZEN at the grassroots level
KAIZEN — The practice
Management-oriented KAIZEN
KAIZEN in facilities
Just-in-time production
A example of Management-Oriented KAIZEN
Systems improvement
Group-oriented KAIZEN
Small-group activities
QC circles
Examples
Komatsu
Nissan chemical
Hitachi-Ad hoc campaigns
Individual-oriented KAIZEN
Suggestion systems
KAIZEN Management
Headlines
Cross-functional management
Policy deployment
Quality deployment
Total productive maintenance
The KAIZEN approach to problem solving
The problem in management
KAIZEN
Starts
Problem
Recognition
Anything that inconveniences people downstream
Next process
Ultimate customer
Creators
Not inconvenienced by it
Sensitive to problems created by others
Insensitive to the problems they create
Resolve never to pass on a problem to the next process
First instinct
Hide or ignore problem
Positive thinking
A valuable opportunity for improvement
Courage to admit
Share it with superiors
Resources to solve
Need company support
Warusa-kagen
Things that are not really problems but are somehow not quite right
Things that are not really problems but are somehow not quite right
Left unattended
Cause substantial damage
Report to the boss
Welcomes it
Expressed in quantitative terms
Workers trained to be attentive
Occur in cross-functional areas
Information
Feedback
In the West
Often addressed from the standpoint of conflict resolution rather than problem solving
Lack of predetermined criteria
KAIZEN and labor-management relations
Organized labor
Trade unions
Role
West
Resisting change in the workplace
Deprived workers of a chance to work better and more efficiently on an improved process or machine
Japan
Use one week-end day for self-improvement
Must accept KAIZEN for it to succeed
People
Interested in improving their work
Take positive interest in
Upstream processes
Downstream processes
Job
Involving more than one worker
Gray areas
That do not belong to any one individual
Must be taken care of by whoever is at hand
In Japan
Willingness to take care of gray areas
Lifetime-employment
Does not feel threatened
Other people
Pitch in
Do part of his job
No impact on
Income
Job security
Willing to
Teach workers
Skills acquired on the job
Smooth transfer of skills from one generation to the next
Worker training
Work flexibly
Create environment
Improvement everybody’s
business
concern
Toyota/GM JV Story
NUMMI (New United Motor Manufacturing, Inc.)
KAIZEN Activities
Avenues of pursuit
Worker
Change the way he does his job
To make it
More productive
More efficient
Safer
Change in the work pace
Activities
Review the current work standards
Room for improving performance
Upgrade the standards
Toyota production system
Work standardization
Definition
Optimum combination of
Workers
Machines
Materials
Raison d’ être
Best way to ensure
Quality
Cost
Volume
Safety
Components
Cycle time
Work sequence
Number of pieces in process
Worker
Unable to standardize
Foreman (p169)
Concern
Help do better job (raise performance)
Raise standards
Involve worker in KAIZEN
Commitment to union
Do its best to see that KAIZEN activities in the workplace will not result in a reduced work force
Multiple job assignments
Breaking jobs down into fewer different categories
Equipment improvements
Foolproof mechanisms
Machinery layout
Systems and procedures
Combination of the above
Should be exhausted before thinking about innovation
Cooperation <picture> Confrontation continuum
Cooperation
Working together to bake a bigger pie
Confrontation
Fighting over how to divide the pie
Worker’s best interest
Company
More competitive
More profitable
KAIZEN activities
Improvements
<picture> improve cross-functional areas
Quality
Cost
Scheduling
<picture> bigger pie
<picture> adverse affect on income and job security
Figure 6.1
Labor response to KAIZEN implementation
<picture>
Organized labor’s response
Positive
Income potential
Negative
<picture>
Wages
55% of 120 = 66 is > 60% of 100
Labor’s concern
Job potential
The potential impact upon the total number of jobs available
Job allocation
The actual assignment of manpower within this potential
Job security
Accompanied by cooperation
Issues
Demarcation lines between different jobs
Status of workers who do jobs that are
Enlarged
Enriched
Job redundancy
Not automatic
Chapter 4
Suggestion system
Areas
Individual own work
Energy and other resource conservation
Work environment
Machines and processes
Jigs and tools
Office work procedures
Product quality
New-product ideas
Customer services
Customer relations
Few of these areas lead to redundancy
Assign to other jobs
Learn new skills
Innovation
Large scale
Major labor concern
Joint labor-management commitment
Both
Realistic
Flexible
Management take the initiative in meeting labor’s concern about job potential
Labor initiative and acceptance on job allocation and retraining essential
Productivity increases
Retain same number of workers
Increases production
More broadly capable workers
More likely to see opportunities for additional KAIZEN
Stealing jobs
Management
Continuous efforts to secure labor support
Positive and constructive labor response
Productivity movement
Small-group activities that stress voluntary involvement in KAIZEN
Succeeded in building a KAIZEN conscious work force
Tackle the challenge of JIT production
Assembly of different models of products on the same line
Management and labor: Enemies or allies?
World becoming smaller
Increasing need for “intercultural understanding and communication”
Different
Nationalities
Ethnic heritage
Cultural backgrounds
Have to work together
Management has to relate to their workers
Most at a loss as to how to do it
Working class has different
Values
Aspirations
Gestures of friendship
Neutralize differences of status
Get rid of signs of class system
Different color uniforms
Everyone eating together
Introduce programs in which both parties are forced to work together and to learn from each other
Small group activities
QC circles
Other
Plant tours for family members
Family-directed publicity on company activities
Company badges for workers
Citations for
outstanding performance
long service
safety maintenance
the like
Intradepartmental contests
Welcome parties for new employees
Visits other company plants
Company bulletins and plant newspapers
Radio broadcasts of the latest news
President’s message encloses with pay envelope
Field-day events
In-house “Guinness Books”
Regular meetings with top management
Management has to learn to communicate with his employees
Can achieve their common goal
Small-group activities: Bridging the Labor-Management Gap
Japanese companies
Select 500 “junior leaders”
Demonstrated leadership skills in small-group activities
27 or 28 years old
Unions members
Attend 16-day seminar/cruise
Captive audience
Lectures
Leadership development
Workshop activation
Self-development
Impact of small-group activities on productivity improvement
Junior executive council of Japan
Develop young leaders
Backbone of Japanese corporate management
Encouraged the formation of small groups among workers
Vital role
Raising productivity
Creating a more pleasant and meaningful work environment
Improving industrial relations
Resolving conflicts
Reconcile dual role
Loyal employees
Loyal union members
Shop floor democratization
<picture>
Teachings
Goal of productivity improvement
Build a better future
Greater welfare
Nothing will be handed to them on a silver platter
Everything will require diligent efforts on everyone’s part
Actual division of the fruits of these efforts
Management & labor naturally stand opposed
Tools used in reconciliation
Collective bargaining
Strikes
The productivity culture
Decline in the rate of annual productivity growth
Japan Productivity Center
Physical productivity will not improve unless people working for the company
Are willing to work
Have the feeling that they are doing important work
Nippon Steel and Nissan Motor
JK jishu kanri
Self management
Voluntary participation
Psychologically ready to tackle many different job assignments
Vendors of nonspecific skills to be developed during their employment
Assigned to a job
Given enough training
Mass production process
Painful monotony
Liberate
Multiple skills
Automation
Robotization
Redundant workers reassigned
Training (p184)
Criteria
Perform all types of jobs within a given department
Familiar with subjects… so …
Subjects
Machining
Hydraulics
Pneumatics
Electricity
Electronics
so …
Equipment monitoring
Maintenance
Emergency countermeasures
Extended to new and unrelated fields
Developing multiple skills
New hires
Initial orientation
Use of machines and equipment
Technolympics
Evaluation and certification
Transfer to maintenance or inspection
Rotation between departments
Productivity in disarray: The hard and soft aspects
Productivity
Continuing progress
Material
Spiritual
Latest techniques
management
engineering
Effective only
Employees can
adopt them as their own
Work hand in hand with management
First step
Obtain labor’s explicit understanding of and commitment to the idea that productivity improvement is mutually beneficial
Solve labor-management problems by
Mutual trust
Compassion
Understanding
Concerted efforts on both sides
Solve individual problems
One at a time
Seek agreement through discussion of mutual problems rather than confrontation
Proposals
Mutually beneficial
Explain the proposal
Lessons from JNR
Determination to stand behind the movement
Don’t introduce too quickly
Spend enough time and effort explaining
Solving problems together
The introduction of TQC at Kayaba
Identifying all major quality assurance problems
Past
Present
Listed by department
Analyzed in terms of these questions
Did they happen because
of lack of system
inadequate training and education
there was no applicable rule
nobody followed the applicable rule
Fig 6.2
Identify underlying cause
Devise implementation plan
Each step
From product planning to customer monitoring
Indicate the problem
Countermeasures to be taken
The schedule
Responsible department
Support documentation
All out effort to promote the TQC concept
President or number 2 person must be determined to introduce TQC
Division heads and plant managers
Sent to TQC seminars for top management
Encourage to visit other companies that had already introduced TQC
Activate participation at the grass-roots level
Suggestion from QC circles
Fig 6.3 schedule for QC training
Objectives
Create a QA system to ensure that quality target were fulfilled at each stage
Tools to ensure that match between quality and technology at every stage from product development through manufacturing, sales, and customer service
Fig 6.4 & 6.5
Tools
How they were used
Quality assurance systems diagram (figure 6.6)
Has to be developed for each specific company situation
Shows how each department is involved in each stage from product planning through sales, service, and monitoring
Review current practices
Table of quality assurance activities (fig 6.)
Helps each employee understand what he should be doing in order to assure quality
Shows the documentation and reports needed to support these activities
Regulations and standards to be followed
Relationships among the various department in dealing with major customer complaints (fig 6.8)
Everybody understand how very important it is that the systems and procedures be observed
Introduction of TQC at Koboyashi Kose
See page 202
Top management’s commitment
Determined to introduce KAIZEN as a top priority
TQC strategy
Salespeople
Identify customer needs
Engineers
Develop product designs
Balance
Quality
Cost
Manufacturing people
make the product as designed
Management
Provide the services needed to make this system work
Japanese revolution
Higher quality leads to lower cost
Smaller lots lead to lower cost
A thinking worker is a productive worker
How long for KAIZEN benefits to show up?
3-5 years (p206) for corporate improvement
Several months against a specific target
Changing the Corporate Culture
The customer: the ultimate judge of quality
KAIZEN
Management’s efforts
Customer satisfaction
Not easy to define
In KAIZEN
Measured by
Quality
Cost
Scheduling
Management’s job
Establish priorities among these goals
Deploy the goals down through out the organization
Customer
Set the standard for quality
Deciding
Which products to purchase
Whom to buy them from
Japanese customers are more demanding
The eye of the needle
Buyers at Japanese department stores
Trade practices
Supplier relations
TQC
Fundamental principles
Quality downstream is best assured by maintaining quality upstream
Extends to suppliers
Top-priority areas of management-oriented KAIZEN
Top management policy deployed
Plant manager’s policy deployed
Purchasing people
Issues
Optimum inventory level
Additional supply sources
How orders are placed
Information provide to suppliers
Physical distribution systems
Suppliers’ internal requirements
Develop criteria for checking the relative strength of the suppliers
Price
Cooperation
Quality
Delivery
Technology
Overall management competence
Special awards to suppliers and distributors
Factors
Suppliers policies and management system
Quality assurance
Cost control
Delivery
Technology development
Education
Safety
Environmental control
Assist suppliers to initiate TQC programs
Introduce various KAIZEN programs
Suggestion programs
Small group activities
Maintaining better communication
Product quality
Quantity
Delivery schedules
Results
Improved yields
Better identification of new materials
Lower break-even points
Meet with suppliers every month to study
Employee education
New materials
Physical distribution systems
Improved production lines
Better QA systems
Joint product teams
Work on
New product development
Resource saving
Energy conservation
Top management annual visit
Discuss key policy issues
JIT
Consistent quality
Precision delivery
Stages in manufacturer-supplier relationships
Check the entire lot
Sample checks
Accept everything
Truly worthwhile relationship
Shifting winds of manufacturing strategy
From outsourcing to integrated production back to reliable subcontractors
New product development
Make or buy
Part-time employees
50 percent of total employment in some industries
Ricoh example
Changing corporate culture: Challenge to the west
Defect rates in parts per million
Corporate strategy
TQC
Concrete to everyone
Translated into short-run plans and objectives
Clear
Actionable
Involves
Improving communication and labor-management relations
Revitalizing organizational structures
Deal with people
Net results
More productive workers
More efficient managers
Improved communication
More effective organization
Not monopolized by a handful of top management executives
Spelled out in a form
Understood
Interpreted
Carried out by everyone in the company
Must
Relate to their needs
Motivate their performance
Getting everyone to participate
Right climate or corporate culture
No serious confrontation between labor and management
Management must apply the KAIZEN concept here
Cooperative atmosphere
Getting workers acceptance
Overcoming their resistance to change
Actions
Improve industrial relations
Training and education
Informal leaders
Small-group activities
Support and recognition of worker’s KAIZEN efforts (P criteria)
Workplace a place where workers can pursue life goals
Social life into the workshop
Training supervisors
Discipline in the workshop
Relations between corporate culture and profit
Break even charts
Increasing sales
Lowering fixed and variable expenses
Japanese mode of decision making distinctly different
Use different criteria
Sidebar
Abrupt change
Impact on the organization
Impact on the market
Priority on culture
Factors of industrial structure and psychology
Determine (long run)
Company’s overall strength
Productivity
Competitiveness in the long run
Include
Organizational effectiveness
Industrial relations
Capacity to product quality products economically
Profit
KAIZEN
Measuring top management performance
Yardsticks
KAIZEN
Profit
Board
Establish a budget for changing the culture
5-10 year period
Convince … of the importance of KAIZEN
Investors
Community
Public
Establish top management’s P criteria to measure the level of KAIZEN
Introducing KAIZEN
Following items should be taken into consideration
See page 222
Is top management…?
Committed to
the introduction of KAIZEN as a corporate strategy
Cross functional goals
Quality
Cost
Scheduling
Deploying the necessary resources
Including training for all employees
Following through and auditing its progress
Making cross-functional improvement are ongoing program
The most vital problems in management
occur in cross-functional areas.
often involve interdepartmental activities
Who should have responsibility?
Problem of the proud professional see page 224
Involving everybody in the organization
Not just a one-time program
Job descriptions must include cross-functional responsibilities