Kaizen - A Therapy for Continuous Improvement

I came across this article on Kaizen which I found interesting.  One point I take from it and that has come up through several of my posts is the link of management and leadership support.  I have discussed leadership as both part of my studies with Robert Kennedy College as well as in context to lean culture.  At the end of the day, there are many programs that can be successfully implemented in companies, but everything starts with the leaders, and also has to finish with them to complete the circle.  Both their vision, strategic planning, persistence, openness and inclusiveness as well as change management play a big part in the successful implementation of any project.  For more information on my views please read my previous posts that relate to lean culture and leadership.  If you already have, just enjoy the article below.

Best regards
Roland

http://www.isixsigma.com/methodology/kaizen/kaizen-adhd-therapy-using-continuous-improvement-tools-to-keep-employees-continuously-occupied/?type=newsletter

Kaizen – ADHD Therapy Using Continuous Improvement: Tools to Keep Employees Continuously Occupied

Chris Seider, Robert Tripp and Mike Carnell September 3, 2012

Two common questions for people new to the Lean Six Sigma community are: “What is Kaizen?” and “Why would you run a Kaizen event as part of a Lean Six Sigma project?” This article describes what a Kaizen event is and addresses how to run successful Kaizen events.

Kaizen Basics

Kaizen is a Japanese term that translates to “change for the better” and is sometimes paraphrased as continuous improvement. As an event, a Kaizen represents a focused effort by a team to make quick but meaningful improvements to a defined area of a business process.

Kaizen is not designed exclusively for manufacturing processes but was first embraced on the shop floor. Kaizen can be used to impact one of three measures for a manufacturer – throughput (cycle time), inventory, and product or process cost. While non-manufacturing processes may look to other meaningful metrics to improve, any measurable process improvement should ultimately translate to one of these three primary areas of improvement.

The Relationship Between Kaizen and Lean Six Sigma

Kaizen events are generally distinguished from Lean Six Sigma projects by virtue of the shorter time to implement changes and the more focused application of resources (i.e., team members) to solve problems. The cognitive problem-solving approaches and the philosophies are the same, though some may differentiate the names of the problem solving phases in Kaizen events versus Six Sigma projects. Using the same philosophy in a shorter timeframe can mean that Kaizen events tend to favor trial-and-error tweaking of solutions in the absence of the thorough data analysis that characterizes Six Sigma projects. Solution-tweaking is a consequence that is often readily accepted in order to drive change quickly.

Because of the philosophical similarities between Kaizen and Six Sigma, Kaizen events often become an important component of Six Sigma projects in order to remove operational noise and to help illustrate the systemic issues to be solved in a Six Sigma project. It is also common that Six Sigma projects are a byproduct of efforts to characterize waste in a Kaizen event. In a mature continuous improvement culture, Kaizen and Six Sigma can have a powerful, symbiotic interaction. A planned schedule of future Kaizen events can also become part of a control plan to ensure that an operating system adopts a continuous improvement approach to ongoing management of the process.

Successful Kaizen Events

The best Kaizen events, typically defined by achieving a goal in less than two weeks, feature the following elements.

Process understanding, defined metrics and license to change are prerequisites of a Kaizen event.

The role of team leader is crucial to having a successful Kaizen event. An effective leader will harness the power of multiple voices to explore solutions, refine and correct those solutions as needed, get actions completed quickly, and take responsibility for the success or failure of the event. The team leader should be mostly neutral during the event, but should be ready to contribute when doing so may add value – team leadership is an art form in this sense. The leader is empowered by the site or line leadership to make changes while keeping a focus on what metrics are most important. Change for the sake of change without improving business metrics (and ultimately financial performance) is never the desired outcome.

The team leader must be familiar with the process regardless of whether they formally work in the process. If the selected team leader is unfamiliar with the process, then the team leader must formally observe the process performed prior to launching the team – without trying to improve the process during the observations. In a transactional process the team leader needs to watch several process transactions flow from start to finish before facilitating an event.

Also before launching the Kaizen event, line or site leadership must determine the metrics that will be used to evaluate the work of the team. For example, if a Kaizen is being used to help 5S (sort, straighten, shine, standardize, sustain) an area, an operator’s movements (distance traveled by steps or arms) could be a selected metric – ensuring that the 5S actions were appropriate. As previously stated, continuous improvement-related Kaizen events should primarily focus on three types of measures – throughput, cost and inventory; the event and the selected metrics should be directly linked to at least one of these three process characteristics.

This often requires considerable planning; leaders must be sure that change management approaches are properly considered in anticipation of the desired improvements. For example, if it is clear that standard work combinations need to be reorganized in order to match demand to new manning levels and line layouts, then the site leadership needs to be prepared for document change control and training of operators – as well as supervisors and support personnel. (Note: This assumes that the organization is at an adequate level of maturity to perform a Kaizen and embraces  the importance of a formalized change management process.) Further, having to wait for approvals should be minimized so any changes prioritized by the team can be implemented within 24 hours ideally.

Speed is critical to these events in order to establish a clear cause-and-effect relationship between process changes and process performance. Consequently, the actions of the team must stay focused on improving the metrics desired by the leadership, and not be distracted by political maneuvering to gain support for the changes.

Teams that consist primarily of people who participate in the process.

The team must include three to seven full-time team members who regularly participate in the process that is the focus of the Kaizen event. While it is important to build a cross-functional team, consider using some team members (such as a finance representative) on an ad hoc basis. Powerful Kaizen events have line leadership or supervisors as part of the team composition; teams whose membership derives exclusively from either leadership or operator ranks can suffer from a myopic view of the system and limited buy-in from the process stakeholders. The challenge for any Kaizen leader is to ensure that subordinates are empowered and able to offer ideas without being inhibited by participating line leaders. The input of these team members is critical – they will be actively assisting in executing process changes, they will have to live with the changes as part of their daily routine, and they will be helping their colleagues understand and embrace the process changes moving forward. 

Often, work will need to be accomplished during the 12 to 16 hours the team is not on-site or otherwise unavailable, so the team leader should identify a prearranged point of contact who can coordinate necessary actions. Examples of off-hours work include rearranging furniture in an office, getting new IT connections to support a reconfiguration, getting new tools fabricated to accomplish a task, and acquiring a new piece of equipment that allows for easier operations.

Actions prompted by the team must align with the measures that the leadership wants a Kaizen event to affect. The team members must know that their time is dedicated to the Kaizen until the team disbands. Furthermore, site or line leadership must recognize that team members will not be available as resources to accomplish other tasks – like keeping the line running! 

Using process participants as part of the team helps with the critical change management that is often neglected. If the improvements are understood by all the team members, then acceptance is easier to sell outside of the team. If line leadership can also be part of the team, then the team’s empowerment grows because tacit approval exists for the changes even before confirming with a change management program. The team leader should recognize that unanimous, unwavering endorsement of all changes is not critical; many changes can proceed with general agreement only and an understanding of potential risks. Kaizen leaders need to recognize that there is risk in every decision, but when discipline is applied in understanding the metrics, the people and the process the risks can be better understood. Understanding the risks of making a bad decision – not eliminating such decisions entirely – is the practical path to undertake. To presume that any risk will be completely eliminated undermines the credibility of the Kaizen leader and/or wastes time trying to achieve the impossible.

Kaizen scopes defined not just by the metrics, but also by the physical boundaries of work.

Do not attempt to solve world hunger. No matter how tempting it might be to improve a high-level metric of an operation, the Kaizen leader needs to keep the focus sharp and directly tied to the team’s domain of control. This is especially important if the leader lacks experience running these intense, focused events. The focus should be on reducing a defect or error in one portion of the process, removing a specific element of waste or improving a subprocess of one production/processing area – not on reengineering a complex system. Planning multiple Kaizen events in sequence, each with a narrow focus, is preferable to a single, broadly scoped event on a complex operation. Elimination of one bottleneck will often reveal other bottlenecks that previously had been obscured.

Depending on the scope of the Kaizen, the availability of the line (process) must be coordinated and aligned with thebusiness needs. If significant physical changes are required (or expected) for the process as a result of the Kaizen, then time must be allotted each day to allow these changes to occur. The team leader must remember to use the change management process to ensure changes are aligned with the business needs.

Successful Kaizens can be scheduled for as short as one day or as long as five days. Short Kaizen events need to be narrowly focused with a small physical area to be impacted. While a Kaizen event should target two weeks or less to attain its goals, there are often cases where more difficult physical changes cannot be fully accommodated in that timeframe, so a project plan with milestones and responsible individuals will need to be established and managed.

There is no absolute rule that prescribes how long a Kaizen should keep the team members fully engaged, but it is rare to go beyond a week on a single purpose. Kaizen events are both physically and emotionally intense so more than one week can become difficult to endure. Often, team members will need to address action items outside of the formally convened team for at least one week following the original event. If the team feels the physical or transactional boundary must change during the event, the team leader must immediately coordinate with site or line leadership to formalize the scope change.

Preparing for Success

As with most endeavors, adequate preparation paves the way for success. The guidelines provided here  prepare a company for how to arrange and scope a Kaizen event. Besides solving a focused issue within a process, Kaizen events can be effective in any phase of a Six Sigma project as a means to scope an opportunity, understand waste or quickly identify solutions. Whether used on its own or within a Lean Six Sigma project, a Kaizen event has the potential to bring about lasting, impactful change.

Leadership and the "Three Levels of Intelligence"

Because I see leadership as a key area of Lean Six Sigma and as part of my MBA in Leadership and Sustainability with Robert Kennedy College and the University of Cumbria, I discussed my own view on successful leadership by examining the effect of the “three levels of intelligence” on leadership.  Please feel free to send me a note if you agree or disagree with parts of the following article.  

Intelligence is traditionally measured by the Intelligence Quotient (IQ). Charles Darwin was estimated to have an IQ of 153, Albert Einstein 160 and John F. Kennedy around 120. But IQ is off course only used as an indicative estimate of the ability to reason logically. While IQ is still very much a factor of becoming successful in most areas of business, it is not of sufficient value for corporate success and will not ensure or even guarantee that you will shine above others. 

I can personally relate to the fact that a good IQ, or being well read even educated, can help you build a strong foundation but will not make you the bee of all. 

Emotional Intelligence Quotient (EQ) 

There has been much talk about EQ of late, and it certainly seems to be the flavour of the decade. With the key factor of EQ in my eyes being yourself awareness, made up from confidence, a realist view of one’s self, and not being scared of making fun of you, we can apply the above in various ways to make our daily life easier. Applied in the correct situations these can build great first and lasting impressions, and will make people around you feel at ease. Care has to be taken on when to apply which. I would be very careful about making fun of myself, when in a room filled with people of a strong cultural background that differs significantly from the traditional “Western View”. Although when you ask people in their sixties to eighties, they would argue that the western world has also changed and become a lot more accepting, and as such I would be cautious when surrounded by very Senior leaders with these ideals. 

One thing EQ will help you with is to read these situations correctly, so as to apply yourself in a manner acceptable, with the most successful outcomes. 

This brings me to the next cornerstone of EQ which is directly related to self-awareness and works well in conjunction with it, self-regulation. Knowing your limits will help you create trustworthiness and integrity. You will be comfortable in even the most ambiguous circumstances, and be open to change. I will go into more detail on this later when discussing the ability to adobt and change. With the combination of the two items above, we are strong enough to build the foundation of our motivation and drive, having an optimistic outlook, yet realistic in approach, and a full commitment to the outcome. 

Now this is where we start to tap into leadership. Taking IQ and these first few important parts of EQ, we are building a strong foundation, which displays openness, understanding and energy. However, this is where I believe many leaders fail. They stop there, and feel this is enough for them to succeed, forgetting that there are many more elements to be considered before we can call ourselves a well-balanced successful leader. 

Now although I would still include this following part in EQ, we are relating it to the social quotient (SQ). 

One area where many leaders, and some very ruthless ones fail, is empathy. This will result in not being able to sustain the great first impressions created, and dragging people with you in your “slip stream” of drive. In this world cross-cultural sensitivity is more important than ever. Living in Melbourne this is displayed on a daily basis, with the many cultures who have found a home in Australia, and kept their values. Without empathy, not only will we fail with our “internal customers” but we will also struggle to service our “external customers”. For me empathy is something that comes naturally, but for many people that have not lived in different environments, and/or have not encountered issues beyond their comprehension it is not natural, and this can often be seen as rude and provocative, although these individuals would not understand it, or even comprehend that this is what they are in fact doing. 

If you have ever come across a leader, that is very good at strategy, and running a tight ship, but will not listen to the voices of the customer (both internal and external), you will generally see the frustration that this creates around this person. And although they may have a tick against all of the above, if they fail with empathy, they are most likely doomed as a well-balanced manager, but could still have significant success in other areas. 

This brings me to the last point, the ability to adopt to change – or the change quotient (CQ). 

I briefly discussed the influence of self-regulation earlier which forms the foundation for the ability to change yourself, therefore enabling change around you. If you cannot change yourself, you would find it very difficult to change others around you, or even recognising that change is actually happening all around you. 

Not everyone is comfortable with change, let’s face it, we all get caught up in our every-day lives and routines, and it often takes a lot of strength to do something different. There was a song or ballad around in the 90’s, and one line was, do one thing different every day that scares you. This can be as small a thing as changing the way you get dressed, taking a different way to work, trying different food, wearing clothes that were traditionally seen as not matching. If you can get over this little hurdle on a regular basis, your eyes will widen. I have been practicing this for years now, and although I wouldn’t do it daily, I would relate it to my business world, and try unconventional things. 

One area that I have not discussed, and that sport has taught me is that you need to listen to your mind and body. The more you know about your well-being the more you can feel and take care of it, the more likely you are to translate this to the world and people around you. To many this may seem unrelated to business, but your physical state can affect your work, as it does involve how you feel and look which is directly related to confidence in most cases. Your drive and energy can be directly related to listening to your body, as if your energy levels drop, your mind will slow, and you will go through what most people refer to as “burn out”. Therefore I do believe that this is an important factor to be considered as well. 

In Conclusion 

We are only discussing a very small but integral part of successful leadership here, and I believe there is a lot more to it than just these items. These items do however form the foundation of a successful leader. Depending where this person is in their career, personal life, where in the world geographically, the type of organisation, etc. also play a heavy part in combining the above. You will find that some areas are more relevant in certain cultures than others, and are practiced and applied in different ways. 

A strong and successful leader will know how and when to apply his or her different levels of intelligence for the best outcome. I don’t believe there is one uniform way, or one glove fits all situations, as we are all different. This is the beauty about our world, as when we combine these differences, and listen to the other voices and are able to adopt, we become stronger by the day, resulting in better leadership at all levels. 

Best regards
Roland

What is 5S

5S is the name of a workplace organisation methodology that uses a list of five Japanese words which are seiri, seiton, seiso, seiketsu and shitsuke. Transliterated or translated into English, they all start with the letter "S". The list describes how to organise a work space for efficiency and effectiveness by identifying and storing the items used, maintaining the area and items, and sustaining the new order.

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, prioritising things per requirements and keeping them in easily-accessible places. Everything else is stored or discarded.

Stabilising 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 labeled or demarcated. 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 "standardised cleanup". This phase can also be referred to as Simplifying.

Sweeping or Shining (Seiso)

Clean the workspace and all equipment, and keep it clean, tidy and organised. 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.

Standardising (Seiketsu)

Work practices should be consistent and standardised. 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.

Safety

A sixth phase, "Safety", is sometimes added. There is debate over whether including this sixth "S" promotes safety by stating this value explicitly, or if a comprehensive safety program is undermined when it is relegated to a single item in an efficiency-focused business methodology.

Security

A seventh phase, "Security", can also be added. In order to leverage security as an investment rather than an expense, the seventh "S" identifies and addresses risks to key business categories including fixed assets (PP&E), material, human capital, brand equity, intellectual property, information technology, assets-in-transit and the extended supply chain.

Satisfaction

An eighth phase, “Satisfaction”, can be included. Employee Satisfaction and engagement in continuous improvement activities ensures the improvements will be sustained and improved upon. The Eighth waste – Non Utilised Intellect, Talent, and Resources can be the most damaging waste of all.
It is important to have continuous education about maintaining standards. When there are changes that affect the 5S program such as new equipment, new products or new work rules, it is essential to make changes in the standards and provide training. Companies embracing 5S often use posters and signs as a way of educating employees and maintaining standards.


For more information on how we can assist you at no cost to implement these systems in your organisation please contact me on 1300 880 338 or email sales@chaseperformance.com


Here is another beneficial link to our Japanese associates:  http://www.process-improvement-japan.com/lean-5s.html

Finally, you can visit our web site for more information: http://www.chaseperformance.com

Lean Mining

Chase Performance are specialist consultants in the implementation of Lean business improvement processes.  Lean methodologies evolved in the manufacturing sector where they have been used to identify and eliminate "wasteful" or "non-value adding" activities.  Lean processes have been highly effective in the resources sector where they are rapidly being implemented in an effort to create stable, safe and efficient mining environments. 

Prime examples in Australia are BHP and RIO.  

Even with companies like BHP and RIO who employ their own business improvement specialists, we can assist and support their programs in most cases cost neutrally through our nationally recognised programs that attract government funding to assist in the implementation.

Chase Performance combines extensive Lean experience from the manufacturing sector with decades of resource industry involvement through our experts.  This is a unique and powerful offering resulting in the development and application of a tailored solution to our clients.

Our approach is to work with the management teams of operating resource sites to revitalise Business Improvement efforts through the targeted injection of Lean.  Our experience at all levels of the organisation allows us to offer a range of solutions from company or site wide Lean implementations to specific process/problem solutions.  Typical activities include:

• Ø  Improving Site Safety & Efficiency through 5S implementation
• Ø  Reduction in cycle time on repeat processes such as drill and blast, heavy vehicle servicing, underground deployment, preventative maintenance, etc.
• Ø  Introducing and ensuring safety and efficiency routines and processes
• Ø  Utilising visual information management for improved workforce participation
• Ø  Enhancing the speed at which contractors can be mobilised and demobilised through quick changeover processes
• Ø  Minimising the effects of equipment shutdowns, days lost and shift changes
• Ø  Overall reducing waste, pollution and minimising effects on the environment through the implementation of environmental management systems (like ISO14000)
• Ø  And many more…

Our most recent program with Leighton’s HWE has resulted in an immediate cost reduction of five Million Dollars in one small area of the business, with ongoing savings of the same amount on an annual basis.

Please contact me so that we can discuss in detail how Chase Performance can add value to your organisation at all levels from operations through management.  You will find our approach both engaging and seamless, with great outcomes and often no expense to your business.

If you can’t see how or think this is not possible, try me…