KAIZEN basic No.

What is KAIZEN?

After confirming objective and definition of

Kaizen, we will learn important terms in
association with KAIZEN activity and basic
technology supporting KAIZEN. Finally, we will
pick up seven wastes as problem.

1
 Why is KAIZEN?
Increase in profit
Enhancement in competitiveness

Increase in wage
Job generation
Increase in payable tax → Contribution to National finance
Enhancement of resistibility to business depression
Inter-industry synergy effect

KAIZEN is an important pillar for

the National Growth Strategy
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 What is KAIZEN?

1. Word origin and definition of KAIZEN

2. Problem and issue as target of KAIZEN
3. Characteristics of KAIZEN

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 Word Origin of KAIZEN

改 (Kai): Change, amend, reform

善 (zen): Good, right, virtue

KAIZEN means originally “change for the better.”

KAIZEN is a Japanese business philosophy of continuous

improvement of working practices, personal efficiency, etc.
cite: Oxford Dictionary
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 Definition of KAIZEN by Mr. Imai

KAIZEN is a collective term of productivity

movement, TQC, ZD, Kanban, suggestion system
etc. under the thought common in philosophy,
organization and problem-solving. KAIZEN is
customer-oriented and stresses on continuity,
process and workplace.
abstract from “KAIZEN” authored by Masaki Imai

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 Definition of KAIZEN by JIS
Continuous improvement is the repeated improvement
for problem-solving or accomplishment of issue after
identifying problem or issue.

Intended reference value

Performance

Issue Issue accomplishment

Cu Existing reference value

rre
nt
s itu Problem Problem-solving
ati
on

Time
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 Problem and Issue as target of KAIZEN
Problem is gap between existing objective and current situation.
Problem is forgone or existing.

Issue is gap between ideal situation and current situation.

Issue is futuristic.

Problem-solving type Issue-accomplishing type

Definition of Overt problem Potential problem
problem
Problem Bottom-up style Top-down style
presentation
Solution Persistent improvement activity Change and improvement in
in the existing process existing process or
implementation of new process

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 Characteristics of KAIZEN

1. Continuity
2. Participatory approach
3. Accumulation of small improvements
4. Improvement without a large amount of investment

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Characteristics of KAIZEN (1)
“Continuity”

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 Characteristics of KAIZEN (2)
“Participatory approach”

Promotion organization

Cross
Crossfunctional
functional
Division 1 Division 2 Division 3 organization
organization
QCC 1
QCC 2

QCC 2
QCC 3

QCC 2
QCC 3
QCC 3

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 Characteristics of KAIZEN (3)
“Accumulation of small improvements”

• One KAIZEN does not aim to attain significant

result but accumulation of small improvement
aims significant result.
• KAIZEN has at least three levels; primary level,
intermediate level and high level.
• At the primary level, 5S, QC 7 tools and QCC are
very useful.
• Industrial engineering is useful for the
intermediate level.
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 Characteristics of KAIZEN (4)
“Improvement without a large amount of money”

• KAIZEN before investment

• Investments without KAIZEN may include
investments for “waste.”
• Introduction of 5S for a starter of KAIZEN needs
usually only a few thousand Birr in the case of
LMEs.

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Difference between KAIZEN and Innovation
Level

Ideal level (standard) KAIZEN

Innovation
Ideal level (standard) Actu
a l lev
el
Innovation

Actu
a l le
vel

Time

KAIZEN is continuous efforts.

Innovation is one-shot deal. 13
 Points on Setup of Problem and Issue

• Owners and managers do not always understand their

factory’s problems.
• Owners and managers do not always inform us their real
problems.
• Managers tend to hide real problems.
• Problem should be confirmed through on-the-site observation.
• Owners often prefer the issue approach rather than the
problem approach.

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KAIZEN topics in 3 Countries‘ Enterprises

Topics related to productivity improvement account for 50%.

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 KAIZEN in Productivity

• KAIZEN in productivity means increase of ratio by value

of input to output.
• Owners and managers sometimes misunderstand
meaning of productivity.
• Operating improvement, set-up improvement and
layout improvement are popular purposes in KAIZEN in
productivity.
• Industrial engineering is useful for KAIZEN in
productivity.
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 KAIZEN in Quality
• KAIZEN needs for quality problems are higher than
actualized needs.
• KAIZEN in quality tends to need longer time than
KAIZEN in productivity.
• KAIZEN in quality tends to need only quality control
techniques as common technique but also specific
techniques.
• Therefore , forming team including engineers is often
necessary for KAIZEN in quality.
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 KAIZEN in Cost
• KAIZEN in productivity or quality effects
KAIZEN in cost.
• Specific KAIZEN in cost needs formulation of
cost accounting system, cost design, value
engineering, cost control, etc.
• Direct cost accounting is fundamental
knowledge for consulting.

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 KAIZEN in Delivery Time
• Need for KAIZEN in delivery time is different from
business category.
• Delivery time is a competitive factor for make-to-order
production system .
• Deliver time is gaining recognition even for make-to-
stock production system.
• Because KAIZEN in delivery time makes productivity
worse, it is necessary to prevent from decrease of
productivity to KAIZEN in delivery time.
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 KAIZEN in safety
• There are many hazard in the factory.
• Safety in the factory is essential issue and comes
before KAIZEN in quality and productivity.
• KAIZEN in safety starts from introduction of 5S.
• KAIZEN in work method and equipment comes
next 5S.

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 KAIZEN in morale

• Morale means willingness to work and is

different from moral.
• Morale is prerequisite for other KAIZENs.
• Good communication, participation to KAIZEN,
suggestion system etc. helps to improve
morale.

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 KAIZEN in Environment

• Environmental issue is expanding from local

problem such as water contamination, air
pollution, noise and vibration to carbon-dioxide
emission and global warming.
• Enterprises, especially MSEs tends to neglect
these problems.
• Focusing on KAIZEN in environment is one of EKI
consultant and TVET teachers’ role.
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Priority among 7 Aspects of Problem/Issue

Quality

Environment Productivity

Morale Cost

Safety Delivery

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KAIZEN Activity in Japan and Ethiopia

1. KAIZEN of Toyota
2. KAIZEN of Mirai Kogyo as a example of
Japanese small enterprise
3. KAIZEN activity in Ethiopia

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 KAIZEN of Toyota

• Squeeze dried duster. Through elimination of

Muda (waste).
• Analysis of present state → Team formation
→2S → Standardization → Debrief session →
Horizontal dissemination
• KAIZEN team is a facilitator.
• Toyota emphasize the analysis of present
state.
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 KAIZEN of Mirai Kogyo
• Mirai Kogyo was funded by actors of theater.
• “Theater attendance is not pleased if performers are
impressed by theater. Employees are same. The company
prepare the system in which they work with joy, after that,
we entrust to performers as employee. Without entrusting
employees are not fostered.”
• Reporting is prohibited.
• Unique suggestion system.
• Throughout thrifty.
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 KAIZEN in Ethiopia
• EKI as headquarter of policymaking and dissemination of
KAIZEN.
• MoE, MoUDC, FeMSEDA and ReMSEDA as policy maker of
KAIZEN dissemination.
• LMEs (more than 30 employees) are promoted KAIZEN by
EKI.
• MSEs (up to 30 employees) are promoted KAIZEN by
TVTET.
• KAIZEN activity in Ethiopia is just starting.
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 Channel for dissemination of KAIZEN

To LMEs
Ethiopia KAIZEN Institute Large & Medium
(EKI) Enterprises (LMEs)

Senior EKI consultants

Kaizen Promotion Team

EKI Consultants

To MSEs
Ethiopia KAIZEN Institute Lead Cluster Inst. Micro & Small
(EKI) (under ReTA) Enterprises (MSEs)

EKI consultants/ TVET Teachers/Industrial

Kaizen Promotion Team
Senior EKI consultants Extension
Experts/Multiplier

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 KAIZEN Necessary for KAIZEN

Knowledge of KAIZEN concept and KAIZEN

technology
Attitude with positive thinking
Involvement something of all participation from top
management to workers
Zealous support for KAIZEN
Education on KAIZEN mind and KAIZEN technology
Never-ending KAIZEN activity
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 “KAIZEN” necessary for KAIZEN (1)
“Knowledge of KAIZEN concept
and KAIZEN technology”

• KAIZEN culture is settled by dissemination of

KAIZEN concept and technologies.
• KAIZEN concept is not so difficult to understand.
• KAIZEN technologies include from easy ones to
difficult ones to use.
• KAIZEN should be started by use of easy
technologies such as 5S and QC7 tools.
• Because of knowing difficult technologies, it is not
effective to use them forcedly.
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 “KAIZEN” necessary for KAIZEN (2)
“Attitude with positive thinking”

• KAIZEN concept and technologies takes

advantage together with positive attitude.
• KAIZEN culture is formed by people and
organization with positive attitude to KAIZEN.
• KAIZEN culture can be formed in Ethiopia as if
quality culture was formed in Japan.
• Your responsibility to form KAIZEN culture is
truly important and with the meaning.
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 “KAIZEN” necessary for KAIZEN (3)
“Involvement something of all participation
from top management to workers”

• The top management who focuses interest on

KAIZEN is crucial success factor.
• Participation from workers related to KAIZEN
is essential for success and continuity.
• Because major problems often hides between
divisions or sections, formation of cross-
functional organization is necessary for
KAIZEN. 32
 “KAIZEN” necessary for KAIZEN (4)
“Zealous support for KAIZEN”

• KAIZEN can be promoted with paying zealous

attention to it.
• It looks like drawing out of the soccer supporter's
existence the power of the team.
• The concern of supporters is motivation as for
KAIZEN. It is confirmed by Hawthorne
experiment.
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 “KAIZEN” necessary for KAIZEN (5)
“Education on KAIZEN mind and KAIZEN technology ”

• KAIZEN is implement by human resource

though innovation is done by investment.
• Education of KAIZEN concept and technologies
is crucial matter for both of EKI consultant
(TVET teachers) and KAIZEN team member of
the client.
• KAIZEN aims to achieve good performance
through the development of human resource.
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 “KAIZEN” necessary for KAIZEN (6)
“Never-ending KAIZEN activity”

• Successful KAIZEN comes after failed KAIZENs.

• Because KAIZEN need small amount of money,
KAIZEN can be restarted.
• For KAIZEN, implementation is far more
important than theory.
• Don’t end KAIZEN if you aim to make great
improvement after small success in KAIZEN.
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Basic Technologies to Promote KAIZEN

1. 5S
2. QCC (Small group)
3. Suggestion system

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 Basic technologies to promote KAIZEN (1)
“5S”

• Sort, set in order, shine, standardization,

sustain.
• 5S is a prerequisite for KAIZEN.
• 5S is well known but not too executed.
• There is no KAIZEN technology that cost-
effectiveness is large like 5S.
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 Basic technologies to promote KAIZEN (2)
“QCC”
• Quality control circle is the same as small
group nowadays.
• QCC has three characteristics.
a. Members learn rational way of viewing and scientific
problem-solving method through QCC.
b. Formation of teamwork and confidential relationship
through conversation and activity.
c. Contribution to the organization and society through
problem-solving.
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 Basic technologies to promote KAIZEN (2)
“Suggestion system”

• Suggestion system is the system in which

employees propose their idea regarding
KAIZEN, the company evaluates the idea and
offers awards to employees who propose
adopted ideas.
• This system accelerates motivation to
participation in KAIZEN.

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 KAIZEN Process
Observation

Selection of Plan
problem
Standardization
and Settling of Understanding of
control current situation
Act

Confirmation
of result Setting of
objective
Check

Investigation and
implementation Setting of plan
of measure
Do Factorial
analysis 40
7 MUDA (waste) to be eliminated
1. MUDA in overproduction
2. MUDA in waiting
3. MUDA in transportation
4. MUDA in processing
5. MUDA in inventory
6. MUDA in motion
7. MUDA in defect
Various technologies are necessary for
elimination or reduction of 7 MUDA. 41
 7 MUDA (1)
MUDA in Overproduction

• Overproduction is the worst MUDA among 7

MUDA.
• Overproduction is excess production over
actual demand.
• Overproduction induces excess of
transportation, storage area and interest, and
risk of quality deterioration.
• Overproduction occurs various causes.
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 7 MUDA (2)
MUDA in Waiting

• Waiting of worker or machine occurs from

shortage of work to be processed.
• This is caused by delay or shortage of work in
prior processes.
• Overproduction prevents waiting.
• Which is serious MUDA, overproduction or
waiting?

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 7 MUDA (3)
MUDA in Transportation

• Transportation does not create value added

except by transportation company.
• Transportation is usually difficult to eliminate
totally but reduction is possible.
• Layout improvement aims mainly to KAIZEN in
transportation.

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 7 MUDA (4)
MUDA in Processing

• Processing is not always value-added process.

• MUDA in processing is little bit difficult to find.
• MUDA in processing is often improved by use
of new design and jig.
• Value engineering is useful for elimination of
MUDA in processing.

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 7 MUDA (5)
MUDA in Inventory

• Inventory includes stock of raw material, material in

process and final product.
• Inventory needs stock space, excess transportation
and interest.
• By increase in inventory, the factory tends to
prevent from shortage of stock and waiting.
• This hides many problems such as machine
breakdown, long delivery time and quality problem.
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 7 MUDA (6)
MUDA in Motion

• MUDA in motion is motion without value-

added, unnecessary motion, and slow motion.
• MUDA in motion induces increase of workers
and man-hour, hiding of unskilled work,
instability of work and unnecessary motion.
• MUDA in motion is caused by isolated
operation, inadequate layout and lack of
training.
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 7 MUDA (7)
MUDA in Defect

• MUDA in defect consists of defect itself and

adjusting of work.
• MUDA in defect brings confusion in material
flow and negative impact on productivity.
• Defect in market bring complaint from
customers.
• If inspectors are increased for reduction of
defect, it does not mean real action for defect.
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