[CBME1: OPERATIONS MANAGEMENT & TOTAL QUALITY

MANAGEMENT] MODULE 1

Lesson 4
KAIZEN: CONCEPTS AND SYSTEMS
LEARNING OUTCOMES:

a.

Define Kaizen as a philosophy.

b. Describe the different concepts of Kaizen.
c. Explain the systems under Kaizen.
d. Apply the philosophy of Kaizen in everyday activities.

Kaizen is a philosophy that calls for people and their organizations to

experience ongoing improvement at every level. Through focusing on small,
incremental change rather than dramatic innovation, Kaizen seeks to construct
effective and efficient processes and quality outputs.

Kaizen: The Spirit of Lean Manufacturing Culture

ΚΑΙ
ZEN

改+善
"good change"

=
aka "continuous
improvement"
"change"
"good"

Source: https://leansmarts.com/lean-101/kaizen/

Kaizen at the workplace means continuing improvement involving everyone, managers and
workers alike. The kaizen business strategy involves everyone in an organization working
together to make improvements without large capital investments.
Kaizen Concepts
* Kaizen is a Japanese word meaning continuous improvement.
+ It is made up of two characters which are "kai", meaning "change", and
"zen", which
meaning "good".
+ It is used to describe a company culture where everyone, from the CEO to the
front desk
clerk, regularly evaluates his work and thinks of ways to
improve it.
+ The concept is small steps on a customary basis will lead to large
improvements in due
course. Kaizen entails relatively little expense.
+ Kaizen originated in Japan as a result of World War II. Ironically, it
evolved in part from American business leaders like Dr. W. Edwards
Deming who came to help restore the country.

SOUTHERN BAPTIST COLLEGE/RHEA CATHERINE

AGUIRRE-NOBLEZA
Page 31

Scanned with CamScanner

[CBME1: OPERATIONS MANAGEMENT & TOTAL QUALITY
MANAGEMENT]
MODULEI

It was first introduced by a 1951 training film

created by the American Economic and Scientific
Section (ESS), although Dr. Deming is largely
credited for instituting the
principles of Kaizen in Japan.

Toyota has been known as the initial company that has

 started Kaizen. The application that Toyota used was called
"Toyota Production System", where all line personnel are
expected to discontinue their moving production line in the
case of any irregularity, and
suggestions for improvement are awarded reward.
KAIZEN AND MANAGEMENT

Kaizen will result in many suggestions for improvements and changes

will take away from a strict focus on moving items quickly through the
existing production process. Management must be prepared to
recognize some time away from current work to focus on
changes with
longer-range impact.

Management has two major components which are maintenance, and

improvement.

1. Maintenance Function is to maintain current technological, managerial,

and operating standards. Under the maintenance function, the management must
first establish policies, rules, directives and standard operating procedures (SOPs)
and then work towards ensuring that everybody follows SOP. The latter is achieved
through a combination of discipline and human resource and development
measures.

2. Improvement Function is aimed at improving current standards. Management works

constantly towards modifying the existing standards, once they have been mastered, and establishing
higher ones. Improvement can be broken down between innovation and Kaizen.

*Innovation involves a drastic improvement in the existing process and requires large investments and big
efforts. Kaizen signifies small improvements as a result of coordinated continuous efforts by all
employees.
A manager needs to work closely with the senior management, human resource
professionals to develop perfect implementation strategies. A manager has to act as a
bridge between the senior management and the entire workforce.
1. The role of manager is to act as a facilitator at the workplace.
It is the duty of a manager to assist employees in implementing TQM.
As a manager, it is also his responsibility to choose and assign right
 individuals who can
work line managers and take charge of the whole
project.
+ The employees to be selected must be reliable and diligent and
capable as
much as necessary to handle a key project like TQM.
2. A manager must communicate the benefits of total quality
management to all other
members of the organization.

SOUTHERN BAPTIST COLLEGE/RHEA CATHERINE

AGUIRRE-NOBLEZA
Page 32

Scanned with CamScanner

[CBME1: OPERATIONS MANAGEMENT & TOTAL
QUALITY MANAGEMENT] MODULE T
* Call employees on a common platform and address the benefits
and importance of TQM. Make them understand how
successful implementatiSon of TQM programs would give
way to high quality products which would benefit the organization
and the employees as well.
PROCESS VS. RESULTS

P (PROCESS -ORIENTED) CRITERIA

Long-term orientation

Efforts for improvement are

important.
It is cared how the processes work and how
the results are obtained.

Process oriented indicators are

followed.
 Awards are determined on the basis of how
processes flow.

Rewards are generally based on recognition

and honor geared to the effort made.

skill
Discipline, time management,
development, participation and
involvement, morale, and
communication are important.

A supportive and collaborative role is

seen among managers in process- oriented
management.
R (RESULT-ORIENTED) CRITERIA

Short-term orientation

Performance and results are

important.

Degree of goal achievement

is important.

Result-oriented indicators are

important.
Awards are determined on the basis of
results on

processes.

Rewards are generally

related to financial
performance.

The results and reaching goals

in designated time frame are
important.

Control-centric behavior is more

common among result- oriented
managers.

Process oriented thinking mostly centers on how processes are carried

out through the assessment of performance indicators generated by measuring
or observing the process flow. Result oriented thinking basically disregards
how processes flow and work. Instead, process/results outcomes are
obtained, monitored and evaluated systematically. Kaizen focuses at
improving the process rather than at achieving certain results. Such
management attitudes and process thinking formulate major differences
in the manner an organization masters change and achieve improvements.
PDCA/SDCA Cycles

Central to the philosophy of Kaizen are two cycles

that involve the processes for improvement and for
maintenance: Plan -Do-Check -Act (PDCA) and
Standardize -Do-Check-Act (SDCA).
When improving processes the following are the
phases:
SOUTHERN BAPTIST COLLEGE/RHEA CATHERINE
AGUIRRE-NOBLEZA
Page 33

Scanned with CamScanner

1)

2)

3)
4)
147
[CBME1: OPERATIONS MANAGEMENT & TOTAL QUALITY
MANAGEMENT]
MODULE T

Planning Phase -planning is the most vital phase

of total quality management. In this phase
employees have to come up with their problems and
queries which need to be addressed. They need to
come up with the various challenges they face in
their day to day operations and also to analyze the
problem's root cause. Employees are required to do
necessary research and collect relevant data which would
help them find solutions to
all the problems.

Doing Phase In the doing phase, employees develop a solution

for the problems defined in planning phase. Strategies are
devised and implemented to overcome the challenges faced
by employees. The effectiveness of solutions and strategies is also
measured in this stage.
Checking Phase -checking phase is the stage where people actually
do a comparison analysis before and after data to confirm the
effectiveness of the processes and
measure the results.

Acting Phase-in this phase employees document their results and prepare
themselves to address other problems.
 Act

Plan the next cycle

Decide whether the change can be

implemented

Study
Complete the
analysh of the data

Compare
pred Summartue
Plan
Define the
objective questions and predictions
Plan

(Who? What? Where? When 7)

Pan data collection to
wer the questions

Do
Carry out the plan Collect the data Begin analysis of the data

Maintenance cycle, SDCA is invoked when a failure occurs. Standardization seeks to

stabilize processes so they can be improved. Through understanding if a failure occurred
because of a poor or non-existent standard or because an existing standard
wasn't followed, managers can implement specific actions to correct it. Once a
standard is put into practice, it can become the focus of the PDCA cycle.
The SDCA cycle ensures that the improvements that have been done using
Kaizen works well and improvements do not slide back. SDCA prevents the
deterioration and therefore it is extremely important that both the SDCA
and PDCA cycles are well established. Improvement
without standardization is stillbom to say the least.

Standard is the best, safest and easiest ways, to achieve and

maintain a defined quality level.
Standards should be:
 1)
Be simple. Clear and conspicuous
SOUTHERN BAPTIST COLLEGE/RHEA CATHERINE
AGUIRRE-NOBLEZA
Page 34

Scanned with CamScanner

[CBME1: OPERATIONS MANAGEMENT & TOTAL QUALITY
MANAGEMENT]
MODULE 1

Be the best, easiest, safest way-should only have one at a

time. Preserve know-how
Be guide-lines that enable performance
2)
3)
4)
5)
Measurement of tasks delegated
6)
Assure quality, cost, delivery and safety.
7)
Show relationship between cause and effect
With Standards:

1)
Management becomes possible
2)
There is a basis for training
3)
There is a basis for audit or diagnosis
4)
Problems are prevented from recurring and control variability.

SDCA
Standardize

Act
 Continuous Improvement

WitboNG

Check
Do

Putting Quality First

Kaizen also talks about improving performance in terms of three dimensions which are quality, cost,
and delivery (QCD). Quality is typically among the most essential criteria customers use to
make the purchase. Quality is usually customer-defined and referred as to the perceived
characteristics and features of a product.
Kaizen requires that quality is a primary goal. There could be so many goals
for the firms to achieve such as goals of quality, cost, and delivery. The
firm should always put quality first priority.
+ Cost is generally looked at coming from the manufacturers viewpoint, as
the overall cost of
making and selling a product.
+ Delivery refers to bringing the necessary quantity of products in
the right place at the right
time.

Speak With Data

Kaizen is a problem-solving process. Since Kaizen
deals with addressing problems or limitations every
situation must be correctly understood. Kaizen
has no room for "seat of
the pants" operations.
The Next Process is Customers
SOUTHERN BAPTIST COLLEGE/RHEA CATHERINE
AGUIRRE-NOBLEZA
 Page 35

Scanned with CamScanner

ICBME1: OPERATIONS MANAGEMENT & TOTAL QUALITY
MANAGEMENT]
MODULE 1

The last concept of kaizen is the next process is the customer. This
means that all workers think that next process is the
customers. Kaizen promotes the concept of internal and
external. Through regarding every process in a series as a customer
of the preceding process, every stage of production can be concentrated for a quality
result.
KAIZEN SYSTEMS

+TQM CONTROL

Continu Spent

Precess Thinking

Training
Customer Satisfactions

Decisions based on Fact

TQM
 Integrated
System
Strategic and
systematic approach
Textal 1mployee Commitment

Team Work and Quality chain

Total Quality Control and Total Quality Management (TQM) are widely used in
manufacturing, education, government and service industry now. TQC/TQM have been
developed as a strategy to help management in becoming more competitive and profitable
through helping it to improve in all phases of business.
TQC is a management tool for improving total performance. TQC means organized Kaizen activities
be part of a totally systematic
involving everyone in a company. Managers and workers alike should
and integrated effort toward improving performance at every level. It is geared towards
increased customer satisfaction through satisfying such corporate cross-functional
goals as quality, cost, scheduling, manpower development, and new product development.

+JIT Production System

JUST IN TIME

SOUTHERN BAPTIST COLLEGE/RHEA CATHERINE

AGUIRRE-NOBLEZA
Page 36
 Scanned with CamScanner
[CBME1: OPERATIONS MANAGEMENT & TOTAL QUALITY
MANAGEMENT]
MODULE 1

The just-in-time (JIT) inventory system is a management

strategy that aligns raw-material orders from suppliers directly
with production schedules. Companies employ this inventory strategy
to increase efficiency and decrease waste by receiving goods only as
they need them for the production process, which reduces
inventory costs. This method requires producers to
forecast demand accurately. The JIT inventory system contrasts with
just-in-case strategies, wherein producers hold sufficient inventories
to have enough product to absorb maximum market
demand.

KEY TAKEAWAYS

The just-in-time (JIT) inventory system is a management strategy

that minimizes inventory and increases efficiency.
Just-in-time (JIT) manufacturing is also known as the Toyota Production
System (TPS) because the car manufacturer Toyota adopted
the system in the
1970s.

Kanban is a scheduling system often used in conjunction with JIT

to avoid overcapacity of work in process.
The success of the JIT production process relies on steady
production, high- quality workmanship, no machine breakdowns, and
reliable suppliers.

ACTI
 4 Total Productive Maintenance

TPM
TOTAL PRODUCTIVE MAINTENANCE

Total Productive Maintenance is a system of maintaining and improving the

integrity of production and quality systems through the machines,
equipment, processes, and employees that add business value to an
organization. TPM focuses on maintaining all equipment in top working
condition to avoid breakdowns and delays in manufacturing processes.
Policy Development
People follow policies, good or bad. The need, therefore, is
for organizations in developingreflecting managements
commitment and orientation and to propagate them
through various countries to realize the importance of clear,
well-defined policy statement's on quality
SOUTHERN BAPTIST COLLEGE/RHEA CATHERINE
AGUIRRE-NOBLEZA
Page 37
 Scanned with CamScanner
7

[CBME1: OPERATIONS MANAGEMENT & TOTAL QUALITY

MANAGEMENT] MODULE
modes, such as circulation of documents, newsletters,
training, meeting, pledge cards and
personal contacts.

Suggestion Systems

Suggestion system is regarded as individual-oriented kaizen.

Suggestion system encourages all workers to talk about their
suggestions orally with supervisors and put them into action
right away, even before submitting suggestion forms. The
suggestion system is an integral part of an established management system
that aims at involving employees in Kaizen.

IDEA
TEARMORY
AB

COLLABORATE.

ACTIC
PLAN

+ Small-group Activities
 A kaizen includes small-group activities informal and voluntary groups organized to carry out
specific tasks in a workshop environment. The quality circles are the most popular type. Quality circles are
regarded as group-oriented kaizen activities.
Small Group Activity is also known as focused or continuous improvement in English. SGA finds
its origin in the Japanese industry where it is called Quality Circles.

SOUTHERN BAPTIST COLLEGE/RHEA CATHERINE

AGUIRRE-NOBLEZA
Page 38

Scanned with CamScanner

[CBME1: OPERATIONS MANAGEMENT & TOTAL QUALITY
MANAGEMENT] MODULE T

BIBILICAL INTEGRATION:

Philippians 4:6-7

Do not be anxious about anything, but in everything by prayer and

supplication with thanksgiving let your requests be made known to
God. And the peace of God, which surpasses all understanding, will
guard your hearts and your minds in Christ Jesus.
EVALUATION/EXERCISES:

ESSAYS

Why is it important to have a continuous improvement in a

workplace? 50POINTS

ASSIGNMENT: Write it on your activity notebook.

Research for the following:

+ 5S Japanese System

SOUTHERN BAPTIST COLLEGE/RHEA CATHERINE

AGUIRRE-NOBLEZA
Page 39
Scanned with CamScanner