Kaizen Strategies and

Activities

Activity Group Manual

October 2002

TABLE OF CONTENTS
INTRODUCTION.................................................................................................................1
ACKNOWLEDGMENTS......................................................................................................2
PURPOSE...........................................................................................................................3
The Manual..................................................................................................................4
The Kaizen Activity Groups..........................................................................................4
Benefits for Staff...........................................................................................................5
STRATEGY..........................................................................................................................6
The manual......................................................................................................................7
Adapting the culture.....................................................................................................7
Facilitating process improvement................................................................................7
Harness internal synergies...........................................................................................8
Global approach...........................................................................................................8
Summary......................................................................................................................8
Kaizen..............................................................................................................................9
Dual focus..................................................................................................................10
ESTABLISHING GROUP GUIDELINES............................................................................11
1.0 Preparing for Kaizen Activities.............................................................................12
2.0 Kaizen Activity Group Responsibilities.................................................................14
3.0 Other Reading and Related Information..............................................................16
KAIZEN REVIEW..............................................................................................................17
1.0 Plan.......................................................................................................................18
1.1 Plan What Definition of Problem and Analysis of Problem...............................18
1.2 Plan Why Identification of Causes....................................................................21
1.3 Plan How Planning Countermeasures..............................................................22
2.0 Do Implementation................................................................................................24
3.0 Check Confirmation of Results.............................................................................26
4.0 Action Standardisation..........................................................................................27
CONTINUOUS IMPROVEMENT......................................................................................29
Continuously improving..............................................................................................30
Future strategies and opportunities...........................................................................31
APPENDIX A.....................................................................................................................32
Analysis tools.................................................................................................................32
Cause and effect diagrams........................................................................................35
Histograms.................................................................................................................37
Control Charts............................................................................................................42
APPENDIX B.....................................................................................................................44
Contact List....................................................................................................................44
Toyota Customer Service Marketing..........................................................................45
Best Practices Team USA..........................................................................................45
Global Best Practice Group........................................................................................46
Other References.......................................................................................................47
APPENDIX C.....................................................................................................................48
Definitions......................................................................................................................48
Common Language of Kaizen...................................................................................49

APPENDIX D.....................................................................................................................50
Process Mapping...........................................................................................................50
Mapping a Process....................................................................................................51
Main Elements of an Activity Decision Flow Diagram................................................52
Alternative Nature of a Process.................................................................................53
Hierarchical Composition of a Process......................................................................54

INTRODUCTION
The Toyota Way was launched globally in 2001. Following this, Mr Hideo Ozaki,
President of Toyota Financial Services Corporation outlined a plan to focus upon building
the internal synergies and processes within each Sales Finance Company (SFC). To
facilitate the introduction of The Toyota Way, Global Best Practice Group (GBPG) was
established.
The GBPG consists of a representative Champion from each SFC within Toyota Financial
Services (TFS). A Regional Coordinator has been appointed for each of the four global
best practices regions: Asia/Oceania, Northern Europe, Southern Europe (including South
Africa) and Americas. Together this group reports to a Global Coordinator.
The focus of the GBPG is to champion the introduction of The Toyota Way concepts into
each SFC. These concepts are:
Continuous Improvement
Respect for People
This manual will assist you to achieve success through proven methods of Continuous
Improvement (Kaizen), a concept adapted from the world-recognised Toyota Production
System (TPS). This system has been responsible for the improving profits, quality and
delivery time of Toyota vehicles over the past 60 years. It has also provided a basis for
empowerment, encouraging factory staff to make improvements to their jobs.
Whilst TPS concepts have their roots in a manufacturing environment, they can also apply
to operations of SFC's. The task of translating these concepts has been a major challenge
and will also be subject to continuous improvement.

ACKNOWLEDGMENTS
This first release must acknowledge invaluable assistance and support in developing this
manual:
Hideo Ozaki President TFSC
Koji Kobayashi Executive Vice President TFSC
Larry Cannon Senior Vice President TFSC
Ross Springer President Asia/Oceania TFS
Ichrio Yajima Deputy Managing Director Australia TFS
Walter Leyendecker Chairman Europe/Africa TFS
Yoshihiko Morinaga President Europe/Africa TFS
David Betteley Vice President Europe/Africa TFS
George Borst President Americas TFS
Ken Arnold Managing Director Canada TFS
Nampachi Hayashi Executive Advisory Engineer TPS
The TPS group at Araco Corporation, Toyota Industries Corporation Takahama Plant and
Toyotomi Kiko Plant, Best Practice Team USA, and representative Champions and
Coordinators of Global Best Practices Group are also acknowledged for their participation
in the first year of GBPG.

PURPOSE

The Manual
TFS operates in an increasingly competitive market, where internal and external demands
require more than just the provision of goods and services. The increasing international
expansion of TFS and the changing nature of the business environment into the
technologically reliant economy have seen new opportunities evolve. To continue to
exceed customer expectations, the harnessing of synergies within the TFS global
community is paramount. Your contributions to TFS are recognised as important to the
company's success. This first release manual will assist you to become involved in groupbased activities where your contributions can result in improvements to your work
environment.
The manual is designed to be used in all SFC's by staff with a wide ranging skill set. The
manual will also provide a universal platform for information sharing and permit direct
comparison between SFC's. The building of Knowledge Management will eventually stem
from the use of this standardised process of Kaizen initiatives, involving concepts,
measuring, fact/data recording and eventual reporting to a GBPG.
The manual also gives a framework to help staff undertake Kaizen activities that qualify for
a TFS Global Kaizen Award. Further information is available in the Global Best Practices
Group pack, or from your Global Best Practices representative.

The Kaizen Activity Groups

The role of Kaizen Activity Groups is to identify opportunities for improvement within
business processes.
Two main opportunities for improvement are:
1. The elimination of Muda (waste) from processes
2. The correction of any issues/problems within processes in addition to Muda
The relevance of Muda is that it both directly causes problems and also hides or disguises
other issues or problems that are occurring within a process. It is therefore the most
important element to eliminate from a process.
Past experience through TPS has shown that Muda has the worst effect upon a process
and, in turn, upon a business. Therefore the orientation of Kaizen Activity Groups will be
to focus on elimination of Muda to improve efficiencies and to detect issues or problems
within processes where improvement opportunities can be introduced.

Benefits for Staff

Kaizen Activity Groups are an opportunity for all staff to participate and learn about:
Toyota
Job functions
Problem identification and analysis
Project management
Group activities and synergies
The Toyota Way
The Toyota Production System
Process improvement/management
The undertaking of Kaizen activities is not extra work and must not be thought of as such.
Kaizen is a part of working at TFS. Some will no doubt be asking why this is not additional
work. The simple answer to this is that Toyota has empowered staff to challenge
processes, and will reward them for doing so. This philosophy is a factor for success of
TPS in Toyota manufacturing. Similar to Toyota, TFS is developing staff through training
and education to naturally identify areas for opportunity in their roles and to deliver
Customer First products and services.
Kaizen also offers opportunities to participate in a global initiative which will increase staff
understanding and exposure to aspects of TFS, provide opportunities to meet with people
from within the local SFC and other SFCs in the TFS family.
Ultimately, Kaizen gives employees, customers and TFS satisfaction for the
accomplishment of activities. The constantly evolving nature of Continuous Improvement
provides an ongoing improvement, so as an employee you are part of something special;
a cultural adaptation of The Toyota Way to TFS.

STRATEGY

The manual
TFS is looking to sustain long term growth. The company's strategic goals are focused
upon creating opportunities to make this happen. One such strategy has been the
formation of the GBPG. This group will contribute towards the goal of long term growth by:
Changing the culture of TFS
Facilitating process improvement
Harnessing internal synergies
Promoting a global approach
Methods of achieving this are briefly addressed below.

Adapting the culture

The Kaizen culture is one that requires discipline and dedication. It is not something that
is isolated to management or non-management staff. It is a way of doing business. In
adapting TFS culture to The Toyota Way, we should consider matching:
Job related requirements, including:
o Ways to act
o Ways to think
o Key accountabilities
Corporate goals
Staff training and development
Human Resources will play a large roll in the facilitation and management of these
activities. Translating The Toyota Way into meaningful actions is necessary to encourage
and develop the people of TFS. Moments of truth where staff should encounter The
Toyota Way are:
Corporate, Business and Personal goals
Induction and Orientation
Job descriptions
Training and Development
Policies and Procedures

Facilitating process improvement

Kaizen requires both the proficient thinking and action skills of The Toyota Way. The
skills necessary for identifying opportunities to improve the measurement and
implementation of processes are partly addressed in this manual.
The whole directional pull for Kaizen comes from:
Internally from senior management through corporate and business goals and
objectives to process operators
Externally from our customers and through market research
Other methods of facilitating process improvement come from the sharing of policies and
procedures by SFCs. These documents provide the starting point for newer SFCs to
7

develop best practices or for established SFCs to compare and assess their ongoing
practices.

Harness internal synergies

People and knowledge are the most important resources of TFS. Learning to manage and
effectively promote knowledge transfer between our people and companies will bring
improvements in processes.
Sharing the following types of knowledge resources will improve internal synergies:
People
Policies and Procedures
Research
Experiences
Techniques
All of these knowledge resources add value to the way business is done. Sharing these
resources would reduce the amount of initial development required and encourage
improvement of existing benchmarks.

Global approach
This Kaizen Activity Manual contributes towards a global approach by:
Being a universally adaptable resource
Providing a common language for Kaizen
Providing a common platform for activities
Providing a universally comparable output

Summary
Kaizen Activity Group outcomes and activities will become comparable throughout the TFS
global community. This will improve:
Cultural adaptation
Facilitation of process improvements
Internal synergies
Global approach

Kaizen
The principles of Kaizen are:
1. the most important company assets are the people
2. evolution of processes will occur by gradual improvement rather than radical
changes
3. beneficial changes are to be implemented immediately where possible
4. improvement recommendations must be based on statistical and quantitative
evaluation of processes
The Kaizen Activity Groups support and encourage the principles of Kaizen.
Kaizen strategies are generally implemented at three different levels:
1. Management Oriented
2. Group Oriented
3. Individual Oriented
This activity manual will explain and address Group Oriented activities.
Briefly, the support mechanism of Group Orientated Kaizen activities will integrate with the
Hoshin Kanri from Management and a suggestion system from Individuals. These two
areas provide some meaningful guidance for Kaizen Activity Groups pre work activities.
Supporting the strategies of planning and staff development the Kaizen Activity Groups will
develop the skills of participants to a level where they may become group leaders for
future process reviews.
The manual is a resource that is to be used throughout the TFS family to ensure a
consistent approach to Kaizen training and application, provide a universal comparison of
activities and outcomes, and globalise Kaizen Activity Group practices.
Other than the incentives for Kaizen Activity Groups which are related to the empowerment
and participation of staff, increased job satisfaction and exposure to a global concept,
TFSC is also recognising and rewarding Kaizen activities. The next World Sales Finance
Conference will host the winner of a TFS Global Kaizen Award competition. The winner
will present their implemented Kaizen Group Activity to the Senior Management and
Country Managers of the company. (For further information see the TFS Global Kaizen
Award criteria)
The use of existing Policy and Procedure as a basis to move forward is paramount. Policy
and Procedure documents will explain the "as is" situation, and initiate the base of the
Kaizen activity. Kaizen Activity Group outcomes will in turn update and create new and
improved Policies and Procedures. These documents will form Best Practices within
9

TFS, and will build the platform for further improvement opportunities, by looking both
within TFS and externally.

Dual focus
During the identification stage of the activity, focus will be upon identifying problems in
processes. A method for this is to observe a job function in its entirety in order to measure
those aspects that add value, are incidental or wasteful. This will in turn identify processes
that can be improved upon or eliminated.
The group is structured to address and deliver:
1. Process improvements
2. Job function improvements
Processes that are improved will become Best Practices. Full utilisation of staff will
eliminate Muda and maximise value added work.

10

ESTABLISHING GROUP GUIDELINES

11

1.0 Preparing for Kaizen Activities

The members of the group should have skills in the following areas:
1.
2.
3.
4.
5.

Project Management
Some basic statistical analysis
Microsoft Word
Microsoft Excel
Microsoft Visio

The group is structured to address and deliver:

1. Process improvements
2. Job function improvements
As with most roles, preparatory work forms some part of the overall job function. For a
Kaizen Activity Group, preparatory work forms an important starting point. This is
explained here in this strategy section and includes:

1.1 Establishing a Kaizen Activity Group

The Kaizen Activity Group is responsible for various functions including:
1. Project Management
2. Process Management
3. Statistical Analysis
4. Problem Solving Techniques
5. Implementation
6. Updating of Policies and Procedures
SFC are encouraged to establish groups with a diverse range of members with
complementary skills and knowledge to fulfil roles that are naturally best suited to them.
Establishing a group of like-minded people with similar skills may not be able to
achieve the same results of a broad skill based group.
Appointments will be made by the local GPBG representative and local management,
however GBPG will assist whenever possible.
1.2 Identifying the SFC Corporate Goals and Key areas for Improvement
The identification of Corporate Goals that the Kaizen Activity Group can contribute
towards can be identified through discussions with the senior management of the SFC.
Further research may be required into:
1. Balance Sheet
2. Profit or Loss
12

3. General Ledger
Research into submissions in a Kaizen suggestion scheme may also provide direction
for various areas of improvement.
1.3 Contribution the towards the attainment of Corporate Goals
Corporate Goals may consist of:
cost reduction
processing improvement
quality improvements
Usually Corporate Goals will stipulate a level of attainment required for the company
as a whole, and during the scope setting, the group can set itself a target to reach. The
Kaizen Activity Group should undertake work that is not only valuable for group
members but that will also contribute to the achievement of Corporate Goals.
1.4 Obtain all related Policy and Procedure documents
The base point for examination and analysis of processes commences with Policies
and Procedures. Current Policies and Procedures should be an accurate and relevant
reflection of the current process, "as is" and business rule. If Policy and Procedure
documents are outdated or inaccurate, the "as is" process will need to be established.
1.5 Identify major stakeholders in the area where the Kaizen Activity Group
propose to work
Prior to commencing work the Kaizen Activity Group must identify all stakeholders that
will be impacted by activity outcomes. The list of stakeholders may include:
operators in the business process for review
the supervisor and manager of the area
other departments with inter-related activities either prior to or after the process
area
senior management
A full list must be drawn up to facilitate communication throughout the activity.
Communication and involvement of stakeholders is an important aspect of successful
Kaizen Activity Group activities.
1.6 Obtain stakeholder support to the Kaizen Activity Group
Stakeholder meetings should be called prior to the commencement of the Kaizen
activity. The meeting should address issues such as:
scope of the Kaizen Activity Group
purpose of the Kaizen activity
role of stakeholders and Kaizen Activity Group
stakeholder concerns
expected length of the Kaizen activity
13

plan for future communication and involvement of stakeholders

14

2.0 Kaizen Activity Group Responsibilities

2.1 Structured format - PDCA
Providing a structured format for all Kaizen Activity Group activities, the adoption of the
Plan, Do, Check, Action (PDCA) cycle is applied. The PDCA has proven to be a
successful method of reaching goals and objectives for organisations in Japan and around
the world, and it is a tried and tested method at Toyota and TFS.
The integral part of the Kaizen strategy is to systematically follow a cyclical channel of
developing and delivering Continuous Improvement. The format is utilised after PreKaizen work.

15

2.2 Eliminate Muda

The Kaizen Activity Group will be focused on the elimination of Muda.

Muda (Waste) is the residue of poor process

Muda is waste. Muda is represented by all types of waste in a process inclusive of

conveyance (movements), waiting, redundancy, overburden, unevenness and
correction/rework amongst other things.

Incidental work is non value added work which is necessary under present
working conditions

Value added work (Net work) is value added job operations that customers desire.
IMPORTANT: The addition of all parts will equal 100% of a process. Addition of all
processes will equal 100% of a job function.

2.3 Process Mapping

Attached in the appendix is information that will assist with process mapping. This
information is designed to standardise the mapping of "as is" and "could be" processes.
GBPG encourage the use of Visio software for documenting the process maps, which will
permit and foster comparison between SFC processes.

16

2.4 Report all Kaizen Activities

An A3 coversheet developed for the universal documenting of Kaizen Group Activities
must be completed throughout activities and head up all of the work papers and analysis.
The A3 supports the PDCA cycle, and provides a reference for global reporting. This
summary of the activity will give an opportunity for quick review and comparison of
undertakings around the TFS global community. It places not only an emphasis upon the
PDCA cycle, but is also an avenue for learning and training for future activities.

3.0 Other Reading and Related Information

As well as the Kaizen Activity Group manual, Global Best Practices Group has prepared:
TFS Global Kaizen Award
Global Best Practices Group World Sales Finance Presentation
Global Best Practices Group Reference materials and Toyota Kaizen contact list
Refer to the appendix of this Manual for more information.
17

KAIZEN REVIEW

18

1.0 Plan
The Planning stage is the initial stage where multiple activities occur to truly identify:
1. What the problem is
2. Why it is occurring
3. How to correct it
The reasoning for planning is to identify the root cause of an issue. It is not concerned
with improving the work created by the problem, but the reason for the original cause,
which may have formed several steps prior to its actual detection. The issue and the steps
taken during the planning stage may result in detecting the cause of a problem in a far off
environment to where the problem actually exists. This interrelated flow highlights the
effect of processes on the business, and should involve other stakeholders in the Kaizen
Activity Group communications.

1.1 Plan What Definition of Problem and Analysis of Problem

By defining the problem, the scope of the Kaizen Activity Groups' activities is set. As a
definition, a problem is "a doubtful or difficult matter requiring a solution" 1. The pre-work
undertaken has set the basic area and focus of where the Kaizen Activity Group will
commence.
1

The Australian Concise Oxford Dictionary, Fifth edition, AGPS 1994

19

Define Work Categories

All processes can be categorised into
1. Value added work
2. Incidental work
3. Muda

An obvious problem in a process will be associated with Muda. The Muda is making the
process inefficient because of unnecessary actions, such as those listed next to the
diagram below. The detection of Muda in a process and the removal of this will give a
clearer picture, and will expose issues or problems in the process.
Categorising the work requires the definition of all the work that is undertaken by the staff
member during the working day. This includes value added work, incidental work and
Muda. The categorisation is not at this point concerned with a particular process, but is
focused on the efficiency of work undertaken by the staff member.
100% of all processes undertaken within a position must be recorded. A matrix should be
used to record the data as it will be referred to later when work on processes has been
completed, and improvements implemented. The matrix will separately list the processes
undertaken, placed into the three categories of value added, incidental and waste.
Addition of all the time in the matrix will add to the working hours, and therefore give an
indication of each category for improvement.

20

Find the Facts

Fact finding requires the documenting of data that applies to both the whole job role, the
processes within that role, and the processes identified as having a problem. This data is
used in the next step of "why", and therefore it should be recorded so that its manipulation
for the next step can occur. Documenting (in a measurable and comparable format)
aspects such as time, quality level and costs when applied to parts of a process, or a
whole process, will develop a data source that can be used in further analysis. For
assistance with this process, please consider reviewing the next stage from 1.2.1 to 1.2.4
where the data is used to form graphs and charts for analysis.
The way to determine and observe problems is by Genchi Genbutsu. You will have to go
to the source, which is the part of the business where the process is undertaken. You will
have to talk with the people that do the process and are experienced in its operation. You
will have to build a firm understanding of the process, and at this point, compare the actual
process undertaken to the existing documented "as is" process, recorded in the Policy and
Procedure. Where deviation occurs, standardisation is require to either the documented
"as is" process or production of a new "as is" process.
Information that was gathered in the pre-Kaizen Activity Group activities should provide
detailed information such as expense, time, quality and other statistics that will help to
determine the benchmark of process improvements that the group are about to undertake.
It is this information that can be matched to the matrix of work (usually cost and time are
indicators) however all can be used as benchmarks for improvement. Should this
information not be available, it is a priority for the group to document and establish this
benchmark prior to investigating further.
Where a process is not documented in Policy and Procedure, and is carried out differently
by each operator it will be difficult to establish the exact process, but at the same time an
immediate issue will have been identified. Other statistical fact recording can still be
carried out despite a lack of standardised information.
Information recorded by Genchi Genbutsu is the created benchmark. This raw data will be
used in the next step to understand "why" the issue has occurred.

Summary

Areas reviewed
o Whole job function
o Processes
Defined the Problem by:
o Genchi Genbutsu going to the source
o Recorded the facts of the process
o Warusa-Kagen what is it that is not quite right with a process
Analysed the Problem by:
o Matrix revision of whole job processes (value added, incidental, Muda)
o Comparison to the "as is" process
o Comparison to the Policy or Business rules of the process
21

o Preparing the facts into graphs and models

22

1.2 Plan Why Identification of Causes

Understanding "why" a problem has been caused is a key aspect in understanding what
countermeasures can be produced to correct the situation. When asking why, do not stop
at the first response. Ask "why" 5 times.
Asking "why" 5 times will result in a more in depth answer and understanding as to the
root cause. The root cause may have gone unnoticed until now and it must be pursued
even if it occurred in another area of the business.
Methods that support the analysis of data gathered to assist with the discovery of why an
issue has occurred are listed below. This is not an exhaustive list of mediums to display
results of analysis. It is at this time that statistical interpretation is required where the
graphs and charts will isolate problems and assist with identification of the root cause.
1. Pareto diagrams
2. Cause and effect diagrams
3. Histograms
4. Control charts
More detailed information is included in appendix A of this Manual.
23

1.3 Plan How Planning Countermeasures

There is no set standard or rule of thumb as to how a good countermeasure is developed.

As part of The Toyota Way, a countermeasure that puts the Customer First is going to be
the most advantageous. The goal of developing countermeasures is to solve the root
cause of a problem with little or no capital expenditure. This important fact is to
support the human element of a process and not to force system solutions, prior to
exhausting all other solutions. People are the most important asset of TFS and are always
put before system solutions.
Here is an opportunity to build Jidoka into the "to be" process. A countermeasure should
not create any additional issues, and the awareness of Jidoka will avoid possible future
issues or problems.
As it is difficult to quantify how good a potential countermeasure is going to be prior to
implementation, there is a method of gauging the capability of proposed countermeasures
that will help in putting a rigour test around propositions for change. The methods are:
Issue/Problem
Productivity
Quality
Cycle time
Control/Consistency

Countermeasure
Increase
Increase
Decrease
Increase

Best Result
Zero Muda
100% Quality
Zero Cycle time
Zero Variations
24

The decision of how a countermeasure is to be introduced into the process also needs to
be considered here. If the implementation (the next stage) is to occur in a test
environment, that environment needs to be established, and organisation of resources as
to where other work goes during this time needs to be recognised. If the implementation is
to occur to the whole process, then sufficient support is required to ensure service levels
do not drop.
A "to be" decision can be pictured using the matrix of all parts of a job role. The way in
which the "to be" is executed will be the arrangement of job functions that add the most
value. When reviewing the "as is", the process can be arranged for improvement to the "to
be". The "to be" is the process that will be implemented to bring about improvement to the
process and address the issue and problems that have been identified for correction.
At this point, the implementation of countermeasures needs to be discussed with the
stakeholders.

25

2.0 Do Implementation

The Do part of PDCA is where the implementation of all that has occurred during the
planning process happens. For both the whole job function and the processes, the Do's
come from:
1. Immediately recognised improvements/countermeasures
2. More detailed and analysed improvements/countermeasures
Where the immediately recognised improvements/countermeasures are introduced, the
implementation of other countermeasures will usually require a quick measurement of the
improvement, and then a return to the planning process to understand the benefit
achieved by this implementation. The implementation may not bring a resolution to the
issue or problem identified, nor may it even bring about a reduction in cost or time, or an
improvement in quality or profit. It has simply made the working environment conducive to
more improvements, by substituting value added work for Muda.
More detailed and analysed improvements/countermeasures should now be executed as
per the plan. The plan should address:
Responsibilities for implementation
Responsibilities for results measuring
26

Other group member responsibilities such as training the processor to undertake

the standardised process, or provision of a workbook to assist implementation

As would have been considered during the planning process, adequate time should be
allowed to measure the results of the implemented countermeasure. Determinants of what
amount of time is regarded as adequate include:
Is this implemented in a test environment
Is this implemented more broadly than in a test environment
Does the implementation affect other parts of the business
How complex or relatively simple the implementation is
It is recommended that the implementation of countermeasures should be undertaken into
an environment where there is little effect upon customers and other parts of the business.
This is recommended for two reasons:
1. There is no detraction from service to customers
2. There is a "test environment" created where immediate effects can be
observed, measured and adjusted
The effort exercised during the planning process should see that the countermeasures are
successfully implemented and result in the predicted and desired change. However in
some circumstances this is not always the case and further planning is required following
the implementation. This is covered in the Check.
As implementation is designed to improve and change a process or job role, this must be
done in strict consultation with the persons affected. These stakeholders should already
have been involved in some of the stages of the Kaizen activity already, even if they are
not a part of the Kaizen Activity Group. The Kaizen activity is now at a point of reliance
upon the persons affected, and if these persons are not properly briefed about and
understanding of the change, the passion and enthusiasm of the Kaizen Activity Group
may not be enough for them to appreciate the benefits of this change. Make all attempts
to address the concerns of the people now affected.

27

3.0 Check Confirmation of Results

The Check is the measurement of the Do. This means that the countermeasures
implemented must be measurable. If they are not, there has been a failure in the planning
section. As is understood, if you can not measure it, it is not worth doing.
Result benchmarks that were gathered, observed, measured and recorded during the Plan
stage as the "as is" are now to be compared to the "to be" result. It is the "to be" result
that has been implemented during the Do stage, and is proposed to form the future "as is"
for other Kaizen activities.
As measurable countermeasures, checking should be able to determine:
Decrease in costs
Increase in quality
Decrease in rework
Decrease in cycle time
Increase in processes per period of time
Decrease in variations

Elimination of MUDA

The results of checking are some of the indicators for gauging the success of the Kaizen
Activity Group.
28

4.0 Action Standardisation

Recapping on the process; the planning has resulted in problems and issues being
identified at the root cause, countermeasures were developed to correct the issue at the
root cause and to increase value added work and eliminate Muda. These
countermeasures have been implemented, and their results have been compared and
measured against the benchmark "as is" and the "to be". The results from the measuring
are either:
Satisfactory
Unsatisfactory
Where the results are satisfactory, finalising the Kaizen Activity Group activity is required.
The following areas need to be completed:
1. Changes are implemented throughout the company where the processes are
undertaken
2. Resources are reallocated to either the increase in value added work or
elimination of Muda
3. Changes are documented into Policy and Procedure
4. Changes are documented into updated Process Maps
5. All stakeholders and staff affected are advised of the changes
6. Kaizen Activity Group finalise A3
29

Where the results of Checking are unsatisfactory, the Kaizen Activity Group is required to
revisit the Planning process to repeat the PDCA cycle. Before returning to the Plan stage,
the Kaizen Activity Group must complete the A3. The learning section of the A3 is a time
for reflection upon how the activity could have achieved different results. The reason/s for
unsatisfactory results are usually isolated to incorrect identification of the root cause to an
issue or problem. It may be that a root cause was identified, but that there was more than
one root cause. If however the root cause has been correctly identified, attention should
be turned to the countermeasures or their implementation. Countermeasures should
address the root cause. If the countermeasures do not do this directly, then they require
further development. If however they do, then the implementation may not have been
successful and have therefore skewed the results of measurement during the Check
stage. These are important lessons for the Kaizen Activity Group and future groups. By
documenting into the A3, learning and improvement to Kaizen Activity Groups can occur.

30

CONTINUOUS IMPROVEMENT

31

Continuously improving
Kaizen and PDCA is a continuous cycle as the following picture depicts. As the Kaizen
Activity Group is closing their activity, it does not mean that this process will now be
exempt from further process improvement initiatives.
The Kaizen Activity Group, through the process it has undertaken will leave a legacy of
learning in the business. This will permit the education and development of staff; not only
those who participated in the Kaizen Activity Group, but also those who were affected by
the change, to participate in future activities and contribute suggestions through the
acceptable medium within the SFC.

32

Future strategies and opportunities

The GBPG is dedicated to contributing to improving processes throughout the global
network of SFCs, by promoting a culture of Best Practices in the spirit of The Toyota
Way.
The best practice concept is about delivering the best possible solution through various
methods. Kaizen is just one of those methods.
The improvements achieved from Kaizen and documented as TFS best practice policies
and procedures will not only embody the starting point for more internal Kaizen initiatives,
but will also promote a basis for Benchmarking and focus upon Knowledge Management.
Benchmarking requires measuring comparative operating processes and performance with
others to identify best practices. This technique requires knowledge of your business,
processes and performance, for which Kaizen is delivering the understanding. By
comparing the operations of the business to others provides a guide as to what
competitive advantages exist within businesses, and provide benchmarks of performance
attainment.
Benchmarking at TFS can be both internal (amongst SFCs) and external (to companies
outside of TFS). Through Kaizen, internal benchmarking is encouraged as it utilises
existing synergies. External benchmarking requires a different approach as it exposes the
internal workings of TFS to outside companies that may result in disadvantage to TFS.
Knowledge Management is about harnessing the knowledge of the company and making it
available to where it is needed, in a form that is useful for the recipient. The Kaizen
initiatives resulting from this manual will be constantly building knowledge resources and
making these available to SFCs.

33

APPENDIX A
Analysis tools

34

Pareto diagrams2
The Pareto diagram will help to isolate the characteristics that are the major contributors to
a process. By isolating these features, a more focused approach can be taken upon the
process itself. The characterisation and isolation of parts to a process (the inputs) will also
assist determine the factors that are related to an issue.
Best application of Pareto diagrams
The Pareto chart is most suitable where problems are isolated. This does not mean that
the root cause of the problem has been identified; it is just that a problem is readily
identifiable, such as:
Complaints
Rework
Downtime
Errors

The Pareto effect operates on the principle that 80% of problems usually stem from 20% of
the causes. Pareto charts are used to display the Pareto principle in action, arranging data
so that the few vital factors that are causing most of the problems reveal themselves.
Concentrating improvement efforts on these few will have a greater impact and be more
cost-effective than undirected efforts.
Things to look for
2

Adapted from http://www.skymark.com/pathmaker/tour/dataanal.asp

35

In most cases, two or three categories will tower above the others. These few categories
which account for the bulk of the problem will be the high-impact points on which to focus.
If in doubt, follow these manual lines:
1. Look for a break point in the cumulative percentage line. This point occurs where
the slope of the line begins to flatten out. The factors under the steepest part of the
curve are the most important.
2. If there is not a fairly clear change in the slope of the line, look for the factors that
make up at least 60% of the problem. You can always improve these few, redo the
Pareto analysis, and discover the factors that have risen to the top now that the
biggest ones have been improved.
3. If the bars are all similar sizes or more than half of the categories are needed to
make up the needed 60%, try a different breakdown of categories that might be
more appropriate.
Often, one Pareto chart will lead to another:

before and after charts

charts that break down the most important factors discovered in an earlier chart

charts that use different scales, such as number of complaints and the cost to
respond, with the same categories.

Pareto chart statistics

For the Pareto chart, the following overall statistics are calculated:
Mean:
Sum:

the average of all the values in the series, i.e. the average bar height.
the sum of all the values in the series.

36

Cause and effect diagrams3

The cause and effect diagram is used to explore all the potential or real causes (or inputs)
that result in a single effect (or output). Causes are arranged according to their level of
importance or detail, resulting in a depiction of relationships and hierarchy of events. This
can help you search for root causes, identify areas where there may be problems, and
compare the relative importance of different causes.
Causes in a cause and effect diagram are frequently arranged into four major categories.
While these categories can be anything, you will often see:
1. equipment
2. policies
3. procedures
4. people
These guidelines can be helpful but should not be used if they limit the diagram or are
inappropriate. The categories you use should suit the needs of the Kaizen Activity Group.

Best application of cause and effect diagrams

The cause and effect diagram is suited best where problems require isolation. It provides
for a brainstorming session, where the facts that have been observed and data recorded
are applied and questioned with rigour. Here is where the application of the 5 "whys" will
assist with determining root causes.
Cause and effect Tree diagram
Cause and effect diagrams can also be drawn as tree diagrams (resembling a tree turned
on its side.) From a single outcome or trunk, branches extend that represent major
categories of inputs or causes which create that single outcome. These large branches
then lead to smaller and smaller branches of causes (all the way down to twigs at the
ends.) As explained, the difference here is that the outcome determines what the
contributing factors are to that process. The tree structure has an advantage over the
fishbone-style diagram. As a fishbone diagram becomes more and more complex, it
becomes difficult to find and compare items that are the same distance from the effect
3

Adapted from http://www.skymark.com/pathmaker/tour/dataanal.asp

37

because they are dispersed over the diagram. With the tree structure, all items on the
same causal level are aligned vertically.

To successfully build a cause and effect diagram:

1. Be sure everyone agrees on the effect or problem statement before beginning.
2. Be succinct.
3. For each node, think what its causes could be and add them to the tree.
4. Pursue each line of causality back to its root cause.
5. Consider grafting relatively empty branches on to others.
6. Consider splitting up overcrowded branches.
7. Consider which root causes are most likely to merit further investigation.

38

Histograms4

A histogram is a specialised type of bar chart. Individual data points are grouped together
in classes, so that you can get an idea of how frequently data in each class occur in the
data set. High bars indicate more points in a class, and low bars indicate fewer points.
The strength of a histogram is that it provides an easy-to-understand diagram of the
location and variation in a data set. There are, however, two weaknesses of histograms
that you should bear in mind:
1. The first is that histograms can be manipulated to show different pictures. If too few
or too many bars are used, the histogram can be misleading. This is an area which
requires some judgment, and perhaps some experimentation, based on the
analyst's experience.
2. Histograms can also obscure the time differences among data sets. For example, a
histogram of a process run tells only one part of a long story. There is a need to
keep reviewing the histograms and control charts for consecutive process runs over
an extended time to gain useful knowledge about a process.
Best application of histograms
The histogram is suited best where a large data set is held and requires comparison to
both upper and lower limit standards of TFS. The application builds the data into a
diagram (as above) and then it is compared to the standards of TFS, thereby addressing
variations. This process assists in producing regular standard levels in areas such as:
Time
Cost
Quality
Productivity
The SFC will need to determine the upper and lower benchmarks, as well as the mid point
of acceptability prior to detailed analysis occurring. The benchmarks should be aimed at
reducing variation in a process and delivering the best result possible.

Adapted from http://www.skymark.com/pathmaker/tour/dataanal.asp

39

Histograms require a level of mathematical ability, so prior to undertaking this analysis the
internal strengths of the group should be reviewed to ensure this method can be correctly
applied in practice.
Histogram statistics
For histograms, the following statistics are calculated:
Mean
Minimum
Maximum
Std Dev
Class Width
Number of Classes
Skewness

Kurtosis

The average of all the values.

The smallest value.
The biggest value.
An expression of how widely spread the values are around the
mean.
The x-axis distance between the left and right edges of each
bar in the histogram.
The number of bars (including zero height bars) in the
histograms.
Is the histogram symmetrical? If so, skewness is zero. If the left
hand tail is longer, skewness will be negative. If the right hand
tail is longer, skewness will be positive. Where skewness
exists, process capability indices are suspect. For process
improvement, a good rule of thumb is to look at the long tail of
your distribution; that is usually where quality problems lie.
Kurtosis is a measure of the pointiness of a distribution. The
standard normal curve has a kurtosis of zero. The Matterhorn
has negative kurtosis, while a flatter curve would have positive
kurtosis. Positive kurtosis is usually more of a problem for
quality control, since, with "big" tails, the process may well be
wider than the spec limits.

Specification Limits and Batch Performance

Where relevant, you should display specification limits on your histograms. The
specifications include a target value, an upper limit and a lower limit. For example, if
Michael Jordan is shooting a basketball at a hoop, his target is the middle of the hoop. His
spec limits are those points in the circle of the hoop that will just allow the ball to bounce
through the basket. If the shot is outside spec limits, the ball doesn't go in.
When you overlay specification limits on a histogram, you can estimate how many items
are being produced which do not meet specifications. This gives you an idea of batch
performance; that is, of how the process performed during the period that you collected
data.
When you have added target, upper and lower limit lines, you can examine your histogram
to see how your process is performing.

40

If the histogram shows that the process is wider than the specification limits, then it is not
presently capable of meeting TFS specifications. This means the variation of the process
should be reduced.
Also, if the process is not centred on the target value, it may need to be adjusted so that it
can, on average, hit the target value. Sometimes, the distribution of a process could fit
between the specification limits if it was centred, but spreads across one of the limits
because it is not centred. Again, the process needs to be adjusted so that it can hit the
target value most often.
Centre of a Distribution
Processes have a target value (the value that the process should be producing) where
most output of the process should fall. The centre of the distribution in a histogram should,
in most cases, fall on or near this target value. If it does not, the process will often need to
be adjusted so that the centre will hit the target value.
Spread of a Distribution
The spread or width of a process is the distance between the minimum and maximum
measured values. If the spread of the distribution is narrower than the specification limits, it
is an indication of small variability in the process. This is almost always the goal, as
consistency is important in most processes. If the distribution is wider than the
specification limits then the process has too much variability. The process is generating
output that does not conform to specifications, and is therefore unwanted.
Shape: Skewness and Kurtosis
A "normal" distribution of variation results in a specific bell-shaped curve, with the highest
point in the middle and smoothly curving symmetrical slopes on both sides. The
characteristics of the standard normal distribution are tabulated in most statistical
reference works, allowing the relatively easy estimation of areas under the curve at any
point.
Many distributions are non-normal. They may be skewed, or they may be flatter or more
sharply peaked than the normal distribution.
A "skewed" distribution is one that is not symmetrical, but instead has a long tail in one
direction. If the tail extends to the right, the curve is said to be right-skewed, or positively
skewed. If the tail extends to the left, it is negatively skewed. Where skewness is present,
attention should usually be focused on the tail, which could extend beyond the process
specification limits, and where much of the potential for improvement generally lies.
41

Kurtosis is also a measure of the length of the tails of a distribution. For example, a
symmetrical distribution with positive kurtosis indicates a greater than normal proportion of
product in the tails. Negative kurtosis indicates shorter tails than a normal distribution
would have.
Taken together, the values for process centre, spread, skewness and kurtosis can tell you
a great deal about your process. However, unless you have a solid statistics background,
you will probably learn more from looking at the histogram itself than from looking at the
statistics. Remember that where there is data in the tails near a specification limit, chances
are that some non-conforming output is occurring. If your process is actually making five
outputs in every thousand, and you are sampling twenty in every thousand, it will take
some time before you find anything outside of the specifications. There are two things you
should do:
1. continue tracking data
2. make sure your sampling plan is efficient
Distributions you may encounter

The standard normal distribution, with its zero skewness and zero kurtosis. Focus
for improvement should be with any outlying results.

A skewed distribution, with one tail longer than the other. Focus for improvement
should be with the outlying results, most likely in the direction that the data is
skewed.

A double-peaked curve often means that the data actually reflects two distinct
processes with different centres. You will need to distinguish between the two
processes to get a clear view of what is really happening in either individual
process.

A truncated curve (with the peak at or near the edge while trailing gently off to the
other side) often means that part of the distribution has been removed through
42

screening, 100% inspection, or review. These efforts are usually costly and make
good candidates for improvement efforts.

A plateau-like curve often means that the process is ill-defined to those doing the
work, which leaves everyone on their own. Since everyone handles the process
differently, there are many different measurements with none standing out. The
solution here is to clearly define an efficient process, standardise and remeasure.

Outlying results in a histogram bars that are removed from the others by at least
the width of one bar. Sometimes this may indicate that perhaps a separate process
is included, but one that doesn't happen all the time. It may also indicate that
special causes of variation are present in the process and should be investigated,
though if the process is in control before the histogram is made, as it should be, this
latter option is unlikely.

43

Control Charts5

Every process varies to some degree (both system managed and human related
processes). There is an inherent variation with each process, however through
management controls it should vary between predictable limits. For many processes, it is
important to notice "special causes" of variation as soon as they occur.
There is also "common cause" variation. In most processes, reducing this saves money
and produces a more reliant standard of output that customers expect.
There are many different subspecies of control charts which can be applied to the different
types of process data that are typically available.
All control charts have three basic components:

a centreline, which is usually the mathematical average of all the samples plotted.

upper and lower statistical control limits that define the constraints of common
cause variations.

performance data plotted over time.

Best application of control charts

The control chart is suited best where a process is permitted to vary within a certain set of
parameters. This differs to the histogram, which is concerned with bringing a process to a
set standard (the mid point). The control chart uses the data itself to determine a midpoint
and then applies the deviation standard of TFS. In this example it is 3 (3sigma).
A process where some variation is permitted could be found in:

processing time for collections/customer service calls

processing vehicle stock inspections

Adapted from http://www.skymark.com/pathmaker/tour/dataanal.asp

44

other processes where external factors can attribute to variation

Types of errors
Control limits on a control chart are commonly drawn at 3 (3-sigma) from the centreline.
3 limits are a good balance point between two types of errors:

Type I or alpha errors occur when a point falls outside the control limits even though
no special cause is operating. Tampering with data usually distorts a stable process
and wastes time.

Type II or beta errors occur when a special cause is missed as the chart is not
sensitive enough to detect it. In this case, you will proceed unaware that the
problem exists and thus unable to identify it.

All process control is vulnerable to these two types of errors. The reason that 3
control limits balance the risk of error is that, for normally distributed data, data points will
fall inside 3 limits 99.7% of the time when a process is in control. This makes the
Type I errors infrequent but still makes it likely that unusual causes of variation will be
detected.
If your process is in control, that is not necessarily good enough. You have to start
removing special causes, so that you have a stable process to work with. But then the
most substantial benefits occur when improving the process, so that common cause
variation is reduced.
The concept of Jidoka will assist here. Building quality into the process, supported by an
undertaking from the staff in the process that they will not pass on a defective result to the
next person is true Jidoka. For this to happen effectively, staff must be aware of what is a
defective standard, and the diagrams displaying the deviations greater from 3 will be a
good starting point.

45

APPENDIX B
Contact List

46

GLOBAL KAIZEN CONTACTS

Kaizen is a way of life within the global Toyota Motor Corporation
TPS (Toyota Production System) - TMC
TSM (Toyota Customer Service Marketing) TMC
& also GBPG (Global Best Practice Group) TFS
Where can you see Kaizen activity already happening?
TPS is in place at all Toyota Manufacturing plants globally.
TPS is also in operation in all Parts distribution operations.
TSM is a global after sales project (parts & service), which is being rolled out into
individual Toyota dealers across the world.

Toyota Customer Service Marketing

COUNTRY

DIST

NAME

TITLE

TELEPHONE

E-mail

U.S.A.

Lexus

Mr. Jim Anderson

Service Development Manager

310-468-3296

Jim_Anderson@toyota.com

Canada

TCI

Mr. Roger Ebanks

416-431-8389

rebanks@toyota.ca

Australia

TMCA

Mr. John Cutler

61-2-9710-3333

john.cutler@toyota.com.au

Thailand

TMT

Mr. Surasak Suthongwan

Manager,
Service Process Development
Manager, Business Development,
Customer Services Divison
After Sales Development Manager

66-2-386-1126

ssuthong@toyota.co.th

Saudi
Arabia

ALJ

Mr. Othman Al-Oraabi

General Manager
Field Operations Tech. Training

02-678-3333

oraabioa@alj.com

Brazil

TDB

Mr. Osnil A. Bruschi

Field Representative, After Sales

55-11-4390-5298

bruschi@toyota.com.br

South
Africa

TSAM

Mr. Keith Cokayne

Assistant General Manager

After Sales Skills Development

27-11-809-2247

cokayne@tsb.toyota.co.za

Belgium

TMME

Mr. Jose Munoz

Manager
After Sales Planning Department

32-2-7452737

Jose.Munoz@toyotaeurope.com

Venezuela

TMV

Mr. Daniel Lugo

Field Operations Manager

58-212-242-46-22

dlugo@toyota.com.ve

Malaysia

UMWT

Mr. Ismet Suki

Assistant General Manager,

Service Division

03-55191911

ismet@umwt.toyota.co.jp

United
Kingdom

TGB

Mr. Jon Micklefield

Manager
TSM Planning & Development

44-1737-363633

jon.micklefield
@tgb.toyota.co.uk

National Manager
Best Practices Group

310-468-3489

Jesse_zamora@toyota.com

Best Practices Team USA

U.S.A.

Toyota

Mr. Jesse Zamora

47

Global Best Practice Group

It is suggested that at first help is sought from within our own Group.
COUNTRY

DIST

NAME

TITLE

TELEPHONE

E-mail

U.S.A.

TMCC

Mr Ron Dockstader

Group Leader

1-310-468-6410

Ron_dockstader@toyota.com

Canada

TCCI

Mr Sylvain Gareau

Regional Coordinator Americas

& SFC Champion

1-905-513-5440

sylvain_gareau@toyotacredit.
ca

Argentina

TCA

Mr Jorge Sganzetta

SFC Champion

54-11-4341-7857

Brazil

BTB

Mr David Cunha

SFC Champion

55-11-5504-2060

U.S.A.

TMCC

Mr Jeff Miller

SFC Champion

1-310-468-6410

Jsganzetta
@toyotacredit.com.ar
david_cunha
@bancotoyota.com.br,
Jeff_Miller@toyota.com

Australia

TFA

Mr Mark Ramsay

Japan

TFC

Mr Takatoshi Ikenishi

Regional Coordinator Asia/Oceania

& SFC Champion
SFC Champion

61-2-9934-1204
(x 1298)
81-52-954-8171

New
Zealand
Thailand

TFNZ

Mr Matthew Bond

SFC Champion

64-9-571-4298

TLT

Ms Raewadee (Ming)
Chiraburanun

SFC Champion

66-2-636-1313
(x 701)

reawadee_c@tlt.co.th

United
Kingdom

TFSUK

Mr Martin Bates

Regional Coordinator Europe/South

& joint SFC Champion

44-1737-365542

martin.bates@toyota-fs.com

Czech
Republic

TFSCZ

Olga Genadievova

SFC Champion

420-2-227-2-2971

olga.genadievova
@toyotafinance.cz

France

TFSF

Mr Rene Laz

SFC Champion

33-1-47-01-6015

rene.laz
@tfrf.toyota-europe.com

Germany

TKG

Mr Juergen Huebinger

SFC Champion

49-2234-102-1805

juergen.huebinger@toyota.de

Mr Gabor Nagy

SFC Champion

Americas Region

Asia/Oceania Region
mark.ramsay@toyota.com.au
t_ikenishi@toyotafinance.co.jp
matthew.bond@tfs.co.nz,

South Europe Region

Hungary
Italy

TFSI

Mr Armando Colin

SFC Champion

South
Africa

TFSSA

Mr Tony Ayling

SFC Champion

United
Kingdom
Denmark

TFSUK

Mr Keith Doughty

TFSD

Finland

gabor.nagy@toyota.hu

7-11-809-2039

tayling@toyfin.co.za

44-7831-480593

keith.doughty@lexus-fs.com

Henriette.Gamdrup

Regional Coordinator Europe/North

& joint SFC Champion
SFC Champion

45-44-85-03-33

TFF

Mr Jukka Korkiala

SFC Champion

358-9-8518-2269

Henriette.Gamdrup
@toyota-fs.com
Jukka.korkiala@toyota.fi

Norway

TKN

Mrs Liv Rosengren

SFC Champion

47-32-20-8402

liv.rosengren@toyota-fs.com

Poland

TBP

Mr Piotr Lanzinski

SFC Champion

48-22-874-4757

Sweden

TFSSW

Mr Tommy Wretenlind

SFC Champion

46-8-622-3545

piotr.lazinski
@toyotafinance.pl
tommy.wretenlind
@toyota-fs.com

North Europe Region

48

Other References
Toyota Consulting Group and the Toyota Global Knowledge Centre (located in the US
headquarters)
Monthly GBPG reports - for identifying possible process improvement opportunities.
Benchmarking printed material (many examples on amazon.com).

Benchmarking websites and workshops.

http://www.benchnet.com

http://www.benchmarkingnetwork.com/

http://www.apqc.org/

http://www.globalbenchmarking.com/

http://www.iccbc.org/

http://www.qualitydigest.com/

Motor industry relevant reports JD Power

http://www.jdpa.com/
There are a vast amount of other potential sources of information for reference or training
material & your own Human Resources Department may well be able to help. The most
economical solution is always to see if we can provide the resource from within TFS so
going direct to the members of the GBPG is always highly recommended.
Related reading material
"The Wisdom of Teams"
"The Five Dysfunctions of a Team"
The Memory Jogger"
All available through this website and most local and online book stores
http://www.goalqpc.com/
Benchmarking for Best Practices is a guide written by the Process Management
Functional Committee and is available from Global Best Practice Group.
Books titled Lean Thinking by Womack & Jones & Gemba Kaizen (Work Kaizen) by
Imei give insight into the Toyota Production System.

49

APPENDIX C
Definitions

50

Common Language of Kaizen

Genchi Genbutsu

Go to the source, and observe personally. Only when

you have personally observed and fully understand the
effects upon a process, will you then be qualified enough
to make suggestions for improvement. This method
gives a total appreciation of the process environment.

Kaizen

Continuous Improvement. A perpetual cycle of

improvements that occur gradually and involve
everyone. This is not the responsibility of any one
person or department.

Hoshin Kanri

A strategic management system which provides an

organisational communication process to plan and
manage company efforts and align company resources
for addressing business needs as effectively and
efficiently as possible through the systematic application
of PDCA (Plan-Do-Check-Act) thinking.

Warusa-Kagen

Something which is not quite correct, but not a problem.

It may be that this does become a problem and
addressing the issue now will avoid future events.

Standardised

Combination of worker and system. A set way of doing

something that optimises all available resources.

Muda

Waste.

Jidoka

Building quality into the process by stopping immediately

when a defect is identified

51

APPENDIX D
Process Mapping

52

Mapping a Process
The development of a Process Model can go through much iteration before it is complete.
First, the Process Model has to be created; then it is necessary to verify that the data has
been correctly entered into the Model. Next, a reality check must be conducted to
determine whether the Model is an accurate representation of what the organization
actually does. To pass the verification and reality check phases of Process Model
development, Process data must be viewed and analysed (with updates made to the
Model accordingly) Process Data are Data items that pertain to the attributes of Business
Processes. The Process data items are (but not exclusive to): Activities, External
Processes, Variables, Decisions, and Choices. The key to process is based upon
understanding four important concepts:
1. A Process is chronological. Accurate models must therefore be oriented on a
timeline.
2. Flow modelling should display how objects and/or data are transferred and where
they are going. The majority of business problems stem from interdependent
relationships, which are best identified in a flow chart.
3. A Process can be modelled in a hierarchical fashion and can be viewed from many
levels. That is, Processes can contain other Processes.
4. The Choices made for Decisions, which occur within a Process, determine which of
all potential paths shall be taken. It is vital to capture all potential paths of a
Process.
Data collection for Process Modelling efforts can be an individual or a group effort.
Modelling a Process involves the creation of an Activity Decision Flow (ADF) Diagram,
which captures the inner workings of the Process. The boundaries (i.e., beginning and
ending) of a Process are defined first. If large in size, the Process can be broken down into
smaller Processes. Each of these smaller Processes will have its own detailed ADF
Diagram.

53

Main Elements of an Activity Decision Flow Diagram

A Process is defined in an Activity Decision Flow Diagram. The main Activity Decision Flow
Diagram objects are activities - Tasks, Process Objects, and External Processes - which
are connected and driven by Decisions.

Stop

Tasks: A Task represents a low-level activity a generic term that represents

the work performed in a Business Process. Processes and Tasks are
activities performed within the Organization. External Process is activities
performed outside the Organization, which takes place within a Process. It
has a cost and duration associated with it and employs the resources (e.g.,
employee or software) of a particular group or organization.

Process Objects: A Process Object is a high-level activity that takes place in

a Process. A Process Object represents a lower-level Process that can
contain Tasks or even other Process Objects, creating a hierarchy.

External Entities and External Processes: An External Process is an

activity performed in your Process by an External Entity. Either an individual
or a company outside an Organization can impact the Organizations
Process. In an Activity Decision Flow Diagram, the flow between an External
Entity and the Organization goes in one directionmeaning that External
Entities can provide either input to, or receive output from, an Activity
Decision Flow Diagram, but not both. Although External Processes are
outside the control of your organization, they are essential to modelling the
realities of a Process.

Decisions and Choices: During a Process, Decisions, which influence the

routing of work, may be required. A Choice is an alternative value of a
Decision. They are the answers to the questions that a Decision asks. For a
What type of order? question, the answers (or conditions) could be Product
A or Product B. Each Decision Choice creates a new alternative path
through the Process - a new Case. Also, Choices have a probability of
occurrence in the context of the other Choices of that Decision. Thus, the
total percentage of all the Choices of a Decision must be 100%. A Decision
must be made in order to identify the subsequent Tasks.

Connectors: Connectors The chronological connection between two Activity

Decision Flow Diagram objects. By default, it represents the flow of control in
an Activity Decision Flow Diagram and defines the sequence of activities in a
Process. In addition, Connectors can define the media that represents the
method (e.g., courier, electronic mail) used to transport an output from one
activity to the next.

Stops: These graphical markers show that a particular path within the
Process has stopped. For the Design Flow variation of the ADF, they mark
the end of paths that are part of the Multi-Thread and Choice Box modelling
objects.

54

Alternative Nature of a Process

The presence of Decisions in a Process creates at least two alternative paths of execution.
Each of these paths can result in completely different activities.
B
YES
A
Process
Process
NO
C
Process
As the path of the Process is travelled, a Choice has to be made when a Decision Point is
reached. There are as many unique paths through the Process as there are combinations
of Decisions and Choices. Each unique path, from the beginning to the end, is called a
Case.
B

55

Hierarchical Composition of a Process

The boundaries of a Process are set only by your point of view. For example, a Manager
may maintain an overall point of view of her or his department, but each Unit Supervisor
has their own point of view (sub-process), as depicted in the inset box below (as an
example). Each of the square Process Objects (i.e., Process Customer Order, Pack
Customer Order, and Fulfil Customer Order) contains their respective smaller Processes
(or sub-processes).
In this way, a hierarchical tree structure of your Process can be developed. You can think
of Processes and Process Objects as the branches of the tree, and the Tasks as leaves on
the branches.
Customer Rejection Notice

Fulfill
Customer
Order
Process
Customer
Order

Customer Order Form

Pack
Customer
Order

Produc
t

Customer Order Form C1

Package Order

Rejected

Enter
Customer

Customer
Order

Customer Rejection
Notice

Off Shelf
Customer Order
Form
Assembled Product

Customer Order
Form C1

SUB-PROCESS Process Customer Order

56