1) The document discusses the concept of Kaizen, which refers to continuous improvement in Japanese businesses and management practices. 2) Kaizen emphasizes small, incremental improvements over time involving all employees. It is achieved through group activities, process analysis, and suggestion systems rather than major changes or projects. 3) The practice of Kaizen is enabled by Total Quality Control (TQC) which focuses on continuous improvement, employee engagement, and addressing inefficiencies in all aspects of the business from materials to management. TQC utilizes tools like PDCA cycles to standardize improvements.

1. KAIZEN
The Key to Japan’s
Competitive Success
By MASAAKI IMAI
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2. TABLE OF CONTENTS
1. KAIZEN, The Concept
2. Improvement East and West
3. KAIZEN by Total Quality Control
4. KAIZEN, The Practice
5. KAIZEN Management
6. The KAIZEN Approach to Problem Solving
7. Changing the Corporate Culture // YIS//062709//

3. CHAPTER I
KAIZEN
The Concept
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4. Kaizen & Implications of QC
KAIZEN Values
Management for KAIZEN
KAIZEN & The
Kaizen &
KAIZEN & TQC Suggestion
Competition
System
Process Oriented Management
VS
Result Oriented Management
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5. // YIS//062709//

6. JOBS FUNCTION PERCEPTIONS
Japanese perceptions Western perceptions
Top management
Middle management
Supervisors
Workers
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7. Middle
Top
Management Supervisors Workers
Management
and Staff
Determine to Use Kaizen in
Deploy and Engage in Kaizen
introduce Kaizen as functional rules
implement Kaizen through the
a corporate strategy goals as directed by suggestion system
top management Formulate plans for and small group
through policy Kaizen and provide activities
Provide support and deployment and guidance for workers
direction for Kaizen cross functional
by allocating management
resources Practice discipline in
Improve the workshop
Use Kaizen in communication with
Establish policy for functional capabilities workers and sustain
Kaizen and cross high morale
functional goals Engage in
Establish, maintain, a
nd upgrade standard Support small group continuous self-
activities (such as development to
Realize Kaizen goals
quality circles) and become better
through policy Make employees
the individual problem solvers
deployment and Kaizen-concious
audits through intensive suggestion system
training programs
Introduce discipline in
Build Help employees the workshop Enhance skills and
system, procedures, develop skills and job performance
and structures tools for problem expertise with cross
Provide Kaizen
conducive to Kaizen solving education
suggestions
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8. Deming Wheel
Design
Research Production
Plan
Act PDCA Do
Sales
Check
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9. Three Award in Sumo Tournament ;
- An outstanding performance award
- A skill award
- A fighting spirit award
Focus more on process
Rather than result !!! // YIS//062709//

10. CHAPTER II
Improvement
East & West
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11. Continuous Improvement
KAIZEN
INNOVA
TION
Breakthrough
Science Technology Design Production Market
Innovation KAIZEN

12. KAIZEN 1 INNOVATION
Long term Short term
Effect
Un-dramatic Dramatic
Small steps Pace Big steps
Time Intermittent &
Continuous & incremental
frame non incremental
Gradual & consistent Change Abrupt & volatile
Everybody Involvement “Champion”
Collectivism,
Rugged individualism,
group efforts, systems Approach individual ideas & efforts
approach // YIS//062709//

13. KAIZEN 2 INNOVATION
Maintenance & Scrap
Mode
Improvement & Rebuild
Conventional know-how & Technological breakthroughs,
state of the art
Spark new inventions, new theories
Little investment Practical Large investment
Great effort to maintain Requirements Little effort to maintain
Effort
People Technology
orientation
Process & efforts for Evaluation
Results for profits
better results criteria
Economic
Slow growth economy Fast growth economy
condition
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14. Standard
Maintenance Innovation
Actual
Standard
Maintenance
Innovation Actual
Time
Actual
KAIZEN
Standard
Innovation + Kaizen Actual
KAIZEN
Innovation Standard
Time
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15. INNOVATION KAIZEN
Creativity Adaptability
Individualism Teamwork (system approach)
Specialist oriented Generalist-oriented
Attention to great leaps Attention to details
Technology oriented People oriented
Information: closed, proprietary Information: open, shared
Functional (specialist) orientation Cross functional orientation
Seek new technology Build on existing technology
Line + staff Cross functional organization
Limited feedback Comprehensive feedback
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16. Upcoming Japanese product perceptions
Technology Level Preferred Process Product
High Technology oriented Innovative product
Technology innovation with Kaizen orientation
Technology oriented
KAIZEN
People oriented Kaizen oriented
Low Technology
KAIZEN product
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17. CHAPTER III
KAIZEN by
TOTAL QUALITY CONTROL (TQC)

18. 1 Quality control deals with the Quality of people
2 Speaks with data
3 Quality first, not Profit first
4 Manage the previous process ( Upstream)
5 The next process is the customer
6 Customer oriented TQC, not manufacturer oriented TQC
7 TQC starts with training and ends with training
8 Cross Functional Management to Facilitate Kaizen
9 Follow PDCA cycles
Standardize the results // YIS//062709//
10

19. 1. Quality assurance
TQC 2. Cost reduction
3. Meeting production quota
4. Meeting delivery schedule
5. Safety
6. New-product development
7. Productivity improvement
8. Supplier management
TQC // YIS//062709//

20. Manpower
Technique
Method
Time
Muda (Waste) Facilities
Muri (Strain) Jigs and tools
Mura (Discrepancy) Materials
Production volume
Inventory
Place
Way of thinking

21. ACT
PLAN
Standardi- Definitions
zation of problem
CHECK Confirmation Analysis of
of results problem
Identificati
Implemen-
on of
tation
causes
Planning
DO
counter-
measures
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22. Man ( operator) Machine (facilities) Material Operation Method
Does it meet production Are there any mistakes in Are the work standards
Does he follow standard?
requirements? volume? adequate?
Is his work efficiency Are there any mistakes in
Does it meet process capabilities? Is the work standard upgraded?
acceptable? grade?
Are there any mistakes in
Is he problem conscious? Is the oiling (greasing) adequate? Is it a safe method?
the brand name?
Is he Are there impurities mixed Is it a method that ensures a
Is the inspecction adequate?
responsible/accountable? in? good product?
is operation stopped often because Is the inventory level
Is he qualified? Is it an efficient method?
of mechanical trouble? adequate?
Does it meet precision Is there any waste in is the sequence of work
Is he experienced?
requirements? material? adequate?
Is he assigned to the right
Does it make any unusual noises? Is the handling adequate? Is the setup adequate?
job?
Is the work in process Are the temperature and
Is he willing to improve? Is the layout adequate?
abandoned? humidity adequate?
Does he maintain good Are there enough Are the lighting and ventilation
Is the layout adequate?
human relations? machines/facilities? adequate?
Is there adequate contact with
Is the quality standard
Is he healthy? Is everything in good working order? the previous and next
adequate?
processes?
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23. CHAPTER IV
KAIZEN
the PRACTICE

24. Maintain a
questioning &
Use tools &
Achieve open-minded
facilitates to
maximum Maintain attitude for
Eliminate hard maximize
quality with minimum constant
work quality &
maximum inventory improvement
efficiency &
efficiency based on
minimize effort
teamwork &
cooperation
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25. Management Oriented Group Oriented KAIZEN Individual Oriented
KAIZEN KAIZEN
Tools Seven Statistical Tools Seven Statistical Tools Common sense
New Seven Tools New Seven Tools Seven Statistical Tools
Professional skills
Involves Managers & Professional QC- circles group members Everybody
Target Focus on system & Within the same workshop Within one’s own work
Procedures area
Cycle (Period) Lasts for the duration of project Requires 4-5 months to Anytime
complete
Achievements As many as management 2-3 per years Many
chooses
Supporting Line & Staff project team Small-group activities Suggestion system
system QC circles
Suggestion system
Implementation Sometimes require small Mostly inexpensive Inexpensive
cost investment to implement the
decision
Result New system and facility Improved work procedures On-the-spot
improvement Revision of standard improvement
Booster Improvement in Managerial Morale improvement Morale improvement
performance Participation KAIZEN awareness
Learning experience Self-development
Direction Gradual & visible improvement Gradual & visible Gradual & visible
Marked upgrading of current improvement // YIS//062709//
improvement
status

26. Seiton
B
Seiri A C Seiso
5s
Shitsuke E D Seiketsu
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27. Waste of Waste in Waste in
REJECTS DESIGN WIP
quality cost delivery
NINE
WASTES !! product
Waste in
Method / system
FIRST PHASE OF PRODUCTION
resources
manpower facilities money
Waste in Waste in Waste in Waste in Waste in
MOTION MANAGEMENT MANPOWER FACILITIES EXPENSES
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28. Shortened lead time
Reduced time spent on non-process
work
Reduced inventory
J
I
T Better balance between different
processes
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Problem clarification

29. Design
Product
planning
Top Administration
management responsibility:
responsibility :
Strategy &
QCS Production
preparation Provide
support
Planning
Marketing
Production
&
Purchasing
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30. Time
100%
Involvement
50%
0%
Idea Design Model Trial runs Final product Production
Development Development Development & design
customer
PRODUCT DEVELOPMENT appraisal Tools &
machinery
PHASE
AT IDEAL COMPANY Process control

31. CHAPTER V
KAIZEN
MANAGEMENT

32. Management & Labor ;
Enemies or Allies?
Cooperation
Working together to bake bigger pie
Confrontation
fighting over how to divide the pie // YIS//062709//

33. Manager's first job is to learn to communicate with his
employees so both workers and the company can achieve their
common goal
Union leader who cannot understand
financial statement and analyze the
company's performance will not be able to
negotiate with management on such labor-
related subjects as technological innovation,
personnel transfers, and scrapping facilities

34. MANAGEMENT
& LABOR
RELATION
Confrontation
Collective Alleviation of
bargaining frustrations
Formal & Informal &
Organization Individual
oriented oriented
Labor-
Small-group
management
activities
consultation
Cooperation // YIS//062709//

35. Income potential
Job allocation
if labor is flexible + Calls for
management
initiatives
Job potential
if management is
flexible Job potential
If management
is not flexible
Calls for labor
initiatives
-
Job allocation
If labor is not
flexible
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36. General statement of direction
for change (qualitative )
Top management
Definition of top
management statement
(quantitative) Division Management POLICY
Specific goals
(quantitative) DEPLOYMENT
Middle Management
Specific actions
(quantitative)
Supervisors
Goals Governing Body
Long range policy Board of directors meeting
Annual top management
Top management
policy
Top management cross
Cross-functional policy
functional committee
Departmental (functional)
Line management
policy

37. CHAPTER VI
The KAIZEN APPROACH
to PROBLEM SOLVING

38. When there is no
problem , there is no
potential for
improvements
KAIZEN starts with a problem,
more precisely the
recognition that a
problem exists
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39. Seven Statistical
tools New Seven tools
• Pareto diagrams • Relations diagram
• Cause & Effect diagram • Affinity diagram
• Histograms • Tree diagram
• Control charts • Matrix diagram
• Scatter diagram • Matrix data-analysis diagram
• Graphs • PDPC (Process Decision
Program Chart)
• Check-sheets
• Arrow Diagram
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40. Who What Where When Why How
Why does he do
Who does it? What to do? Where to do it? When to do it? How to do it?
it?
Where is it
Who is doing it? What is being done? When is it done? Why do it? How to do it?
done?
Who should be What should be Where should When should How should it be
Why do it there?
doing it? done? It be done? it be done? done?
Can this method
Who else can do What else can be Where else can What other time
Why do it then? be used in other
it? done? it be done? can it be done?
areas?
Where else
Who else should What else should be What other time Why do it that Is there any other
should it be
do it? done? should it be done? way? way to do it?
done?
Where are 3- Are there any 3- Are there any
Who is doing 3- What 3-Mus are Are there any time
Mus being Mus in the way of 3-MUs in the
Mus? being done? 3-Mus ?
done? thinking? method?
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41. VELOCITY FOR COMPETITIVE
ADVANTAGE
Standardization
Process optimization
Elimination of waste
Evolution in people and technique
Durable training // YIS//062709//

42. CUTTING
CHANGE OVER
1. Form a team & TIME
allocate
responsibilities
7. Set-up board for
visualization & 2. Measure
monitoring current
state
Seven
6. Analysis &
Steps
improvem 3. Analysis &
ent improvement
5. Set process
4. Apply first
with new
improvement
scenario
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43. CHAPTER VI
CHANGING
the CORPORATE CULTURE

44. The costumer : 1
The ultimate Judge of quality
The eye of the needle – 2
struggle to enter the market
Supplier relations 3
Changing Corporate culture : 4
Challenge to the west
“We call some societies primitive
because of their desire to remain in the
same state and in unchanging standard
of living – as their gods or ancestors
created them at the beginning of time”
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45. Establishing better Developing additional
criteria to measure supply sources that
optimum inventory can ensure faster
levels delivery
BUY
(Outside
contactors)
Improving the quality
Improving how orders
MAKE are placed
of information provided
to suppliers
(part time
/contract
employee)
Establishing better Understanding the
physical distribution suppliers internal
system requirements better

46. Conventional Japanese
Wisdom Revolutions
Higher quality leads to Higher quality leads to
higher costs lower costs
Larger lots lead to lower Smaller lots lead to lower
costs costs
Workers do not need to be A thinking worker is a
taken into account productive worker
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47. Constant effort to improve industrial relations
getting workers'
Emphasis on training & education of workers acceptance and
overcoming
their resistance
Developing informal leaders among the workers to change.
Formation of Small Group Activities such as QC circles
“Creating a Cooperative
atmosphere and
Support & recognition for workers’ KAIZEN effort
corporate culture”
Conscious effort for making the workplace a place where
Workers can pursue life goals
Bringing social life into the workshop as much as
practical
Training supervisor so that they can communicate better
& create a more positive involvement with workers
Bringing discipline to the workshop // YIS//062709//

48. KAIZEN PHILOSOPHY
“Be it our working life, our social
life, or our home life, deserves to
be constantly improved”
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