KMS Kaizen Management System

KMS Presentation

www.kaizen.com

Version 03

KAIZEN Institute Worldwide

United Kingdom
Germany
France
Spain

Texas

United
States

Portugal

Poland

Slovakia
Russia
Czech
Hungary

Austria
Italy

Japan

Romania

China

Dehli

Switzerland

Egypt

Bahrain
Saudi Arabia

Mexico

UAE

Philippines
Mumbai

Kenya

Ghana
Brazil

India

Chennai

Indonesia

Thailand
Malaysia

Mauritius
Australia

MASAAKI IMAI
Founder and
President

Local KAIZEN Offices

Countries where we operate
Global Office

New Zealand

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KAIZEN (Original Definition)

KAI

Change

ZEN

for the better

K A I Z E N = Continuous Improvement

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The market determines the price

before:

Manufacturing costs

Profit

Sales price
today:

Manufacturing costs

Profit

Market price
The market
determines
the price!

Manufacturing costs

Profit

Sales price
Cost saving

Profits can be maintained only through the management of cost!

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The Gemba Principles

Go to Gemba

When an abnormality occurs

Check Gembutsu

Machine, Material, Failures, Rejects etc.

Search for

Muda (waste), Mura (inconsistency),

Muri (physical strain)

Make KAIZEN

Remove root causes

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QCD

Process
Flow

Process
Effectiveness

Zero Errors

QCD

Lean Support
Systems

Flow
Management

Quality
Management

Asset
Management

C
u
s
t
o
m
e
r
s

Service
Management

Technical and
Organizational
Action Pillars

People
Involvement

Change Management
Build up a solid basis with:
Eliminate: MUDA-Losses

Values Based on Kaizen Principles

Eliminate: MUDA-Waste

Fundamental
Values

S
u
p
p
l
i
e
r
s

Mission and
Targets

What is a KMS Model KMS Temple

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The worldwide Kaizen Management System for sustainable profit and growth

S
u
p
p
l
i
e
r
s

People
Involvement

QCD

Process
Flow

Process
Effectiveness

Zero Errors

QCD

Lean Support
Systems

C
u
s
t
o
m
e
r
s

TFM

TPM

TQM

TSM

Total Flow
Management

Total Productive
Maintenance

Total Quality
Management

Total Service
Management

TCM Total Change Management

Build up a solid basis with:
Eliminate: MUDA-Losses

KAIZEN Foundations
7

Eliminate: MUDA-Waste

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Examples of KMS Models

TOYOTA

The Stanley
Production System

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KAIZEN Foundations Model

S
u
p
p
l
i
e
r
s

People
Involvement

QCD

Process
Flow

Process
Effectiveness

Zero defects

QCD

Lean Support
Systems

C
u
s
t
o
m
e
r
s

Total Systems:

Quality First:

Process Focus:

Universal Tools:

Value Stream Thinking;

Market In;

Process and Results;

SDCA / PDCA;

People Development;

Next Op. is Customer;

Gemba Gembutsu;

5S Habits;

Kaizen Management.

Upstream Management;

7 Mudas.

Visual Management.

KAIZEN Foundations
Fundamental Values and Paradigms

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Foundations - Resistance to Change and Paradigms

S
u
p
p
l
i
e
r
s

People
Involvement

QCD

Process
Flow

Zero defects

Process
Effectiveness

QCD

Lean Support
Systems

C
u
s
t
o
m
e
r
s

People will naturally resist to change;

The power of paradigms;

Paradigms

The process of paradigms change.

KAIZEN Foundations
Fundamental Values and Paradigms

10

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Foundations - Resistance to Change

Weve always worked that way

At first, we cared, but
Its not my responsibility
No-one told me
I dont have the time
Anyway, it wouldnt change anything
Another gizmo which wont last
There are more important problems
Its not possible here
We already have enough work
Whats in it for me?

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Foundations - Paradigms What do you See?

What do you see?

A young lady or an old
woman?
It will depend on your
own Paradigms!
The reality is that both
are present.
It is important to Value
different points of view!
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Foundations - The Process of Cultural Change

Process of Business Change

Process of Personal Change

(needs to be managed by change agents)

Values,
Paradigms,

Values,
Paradigms,
Way
of
Being

Beliefs,
Habits

New Ideas,
Acceptance

Culture

Systems,
Standards

Trial of New
Behaviour

New
Paradigm
Pioneers

New Ideas,
Acceptance

Pilot
Processes

New
Paradigm
Sponsors

New
Paradigm
Sponsors

13

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Foundations - The Process of Cultural Change

The Company Culture Changes

People Start Changing their Behaviour

through belief in new systems and habit of new standards
When Gemba Kaizen Activities
Improve Work Areas and
Processes (visible Improvement)

are introduced motivation

increases and employees enjoy
the practical learning

Gemba Kaizen: Projects, Workshops

and Team Activities.
Changing working conditions leads to
employee behaviour change

14

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Foundations - Total Systems - Overview

S
u
p
p
l
i
e
r
s

People
Involvement

QCD

Total Systems:
Value Stream Thinking;
People Development;
Kaizen Management.

Process
Flow

Zero defects

Process
Effectiveness

QCD

Lean Support
Systems

C
u
s
t
o
m
e
r
s

Functional Organization vs. Value Stream Thinking;

Blaming/Judging vs. Non Blaming/Non Judging;
Training is Enough vs. Kaizen Management System.

KAIZEN Foundations
Fundamental Values and Paradigms
15

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Foundations - Quality First - Overview

S
u
p
p
l
i
e
r
s

People
Involvement

QCD

Process
Flow

Zero defects

Process
Effectiveness

QCD

Lean Support
Systems

Quality First:
Market In;

C
u
s
t
o
m
e
r
s

Product Out vs. Market In;

Final Customer vs. Next Operation is Customer;

Next Op. is Customer;

Upstream Management;

Inspection Management vs. Upstream Management.

KAIZEN Foundations
Fundamental Values and Paradigms
16

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Foundations - Process Focus

S
u
p
p
l
i
e
r
s

People
Involvement

QCD

Process
Flow

Zero defects

Process
Effectiveness

Lean Support
Systems

Process Focus:
Process and Results;
Gemba / Gembutsu;
7 Mudas.

QCD

C
u
s
t
o
m
e
r
s

Results Focus vs. Process and Results;

Theory / Opinion vs. Gemba / Gembutsu;
Point Improvement vs. Flow Improvement.

KAIZEN Foundations
Fundamental Values and Paradigms

17

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Foundations - Universal Tools

S
u
p
p
l
i
e
r
s

C
u
s
t
o
m
e
r
s

People
Involvement

QCD

Process
Flow

Zero defects

Process
Effectiveness

QCD

Lean Support
Systems

Universal Tools:
SDCA / PDCA;
5S Habits;
Visual Management.

No Standards Kaizen vs. Standards Based Kaizen;

No Kaizen Habits vs. Kaizen 5S Habits;

5S

Hidden Information vs. Visual Management.

KAIZEN Foundations
Fundamental Values and Paradigms

18

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TCM - Total Change Management Model

III. Establish Direction & Control
1. Establish a
KMS Audit

2. Policy
Deployment

3. A3 Performance
Control

4. Advanced
HR Practices

II. Develop Change Capability

1. Develop a
KMS Structure

3. Kanri
Kaizen

2. KMS College
(training)

4. Personal
Kaizen

I. Design an Effective KMS

1. Design a
KMS Model

2. Gemba Kaizen
Workshops

3. Value Stream
Projects

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4. Autonomous
Team Activities

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TCM - I. Design an Effective KMS - Overview

Targets:
Clarify the Values, the Mission and the Goals of the KMS;
Build the KMS Temple, a visual management logo full of purpose and
meaning;
Define a clear Action Strategy (master and detailed plans);
Choose and apply the most effective and proven Kaizen tools;
Find a practical way to involve all employees in Gemba activities (top,
middle and bottom).

I. Design an Effective KMS

1. Design a
KMS Model

2. Gemba Kaizen
Workshops

3. Value Stream
Projects

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4. Autonomous
Team Activities

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TCM - II.0. Develop Change Capability - Overview

Targets:
Develop, define and start the Kaizen Promotion Office Structure;
Define and start the KMS Training Plan;
Develop Supervisors Kaizen capability and habits;
Develop key people in terms of Individual Leadership Capability.

II. Develop Change Capability

1. Develop a
KMS Structure

3. Kanri
Kaizen

2. KMS College
(training)

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4. Personal
Kaizen

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TCM - III.0. Establish Direction and Control - Overview

Targets:
Define and implement a System Audit tool;
Deploy the KMS across all company levels and functions;
Check results and make corrections;
Improve the Recruit, Train, Evaluate and Compensate HR practices.

III. Establish Direction & Control

1. Establish a
KMS Audit

2. Policy
Deployment

3. A3 Performance
Control

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4. Advanced HR
Practices

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TFM Total Flow Management Model

II. Production Flow

III. Internal Logistics Flow

IV. External Logistics

Flow

5. Low Cost
Automation

5. Pull Planning

5. Total Pull
Planning

4. Smed

4. Leveling

4. Outbound
and Delivering

3. Standard
Work

3. Synchronization
(KB/JJ)

3. Inbound
and Sourcing

2. Border
of Line

2. Mizusumashi

2. Milkrun

1. Layout and
Line Design

1. Supermarkets

1. Warehouse
Design

St
ra
teg
y

I. Basic Stability

V. Value Stream Design (VSD)

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TPM Total Productive Maintenance Model

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TQM Total Quality Management Model

SITUATION

LEVEL 1

LEVEL 2

LEVEL 3

LEVEL 4

Defects leave the

Company

Defects do not
leave the
Company

Decrease defects

Defects do not
leave the
Process

Zero Defects

Operations

Operations

Operations

Errors

Errors

Errors

Defects

Defects

Inspection STDs

Inspection STDs

Many Defects
Many Complaints

Eliminate Complaints
Inspection

ACTION

Rework
Replacement

TOOLS

Inspection STDs

Improvement

FOCUS

Defects

Processes

Non defective Products

Errors

Improvement

Defects

Processes

Defects

Operations

Operations
Improvement

COMPANY

LEVEL 0

Errors

Inspection STDs

Non defective Products

Non defective Products

Don't Make Defects

Improvement

Don't Pass Defects

to the Next Process

Prevent Errors From

Becoming Defects

Strengthen
Inspection

Strengthen
Improvement

Strengthen Autonomous
Control

Strengthen Autonomation
(Jidoka)

Standards and
SDCA

Structured Problem
Solving

Auto Quality
Matrix I

Auto Quality
Matrix II

S.P.C

Quality Maintenance

Q. F. D.

Non defective Products

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TSM Total Service Management Model

6 Levels of Effective Service Management
L6
Control process
to become

Best In Class

L5
Flexible Working
in Teams

Empower
people
for

L4
Lock in
gains by
Processmapping

L3
Save
through

VSM

L2
Improve through

L1
Create a
good
foundation
through

Process
Improvement

Co-operation

MUDA
5S

Optimization
as a Team

Self
Organization

Create waste free

procedures
Become a showcase

Analyze task
Apply mobility concept
Create flexible layouts

Implement Visual
Management
Create team boards
Practice PD

Map material and

information flow
Do PDCA
Discover potential

Standardize:
Procedures and forms
Office materials
Communications

Eliminate muda
Do 5S
Set goals
Develop roadmap

Achievement of
QCDMS targets

Greater flexibility
Less space

Visual management
Policy deployment

Reduced lead time

Paperless office

No errors or omissions

Awareness of waste

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