CONFIDENTIAL

Kaizen Events
Workshop

Client Training Workshop

August 2003

This report is solely for the use of client personnel. No part of it may be
circulated, quoted, or reproduced for distribution outside the client
organization without prior written approval from McKinsey & Company.
This material was used by McKinsey & Company during an oral
presentation; it is not a complete record of the discussion.
WHAT IS A KAIZEN EVENT (CONTINUED)

“Kaizen” is a Japanese term that means small, incremental, continuous

improvement. A kaizen program, or continuous-improvement program, can
involve multiple approaches to achieve improvements, including its namesake,
the kaizen event. These approaches systematically push an organization toward
a state of Lean Production.

A kaizen event is a rigid methodology to focus improvement activities by

promoting ownership, incremental change, and problem-solving skills. It rapidly
energizes a select group of employees, typically attacking a specific problem
within a compressed period of time.

The specific problems to be tackled within a kaizen event are strategically chosen
to support a company’s business objectives. For best applicability of the kaizen
event approach, the organization should define and prioritize the areas that need
improvement. You should identify small problems with significant short-term or
long-term impact.

* Footnote
Source: Source 5
OVERACHING THEMES OF KAIZEN EVENTS

• Complete and thorough elimination of waste to reduce the timeline

from order to delivery

• Create only what is needed, when it is needed, in the amount needed

• Creativity before capital

• “Where there is no standard there can be no kaizen” – Taiichi Ohno

* Footnote
Source: Source 6
BASIC STEPS FOR CAPTURING WORK KAIZEN OPPORTUNITIES
Work kaizen events should not be haphazard or pursued independently by shop-floor
associates. They must serve the overall business strategy and positively impact all of
the organization. A kaizen program ensures that opportunities for improvement are
identified and captured in the following manner:

1. Identify kaizen purpose

2. Analyze the current situation

3. Generate alternative ideas

4. Create kaizen plan

5. Implement the kaizen plan with

kaizen events

6. Confirm the results

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STEP 1 – IDENTIFY KAIZEN PURPOSE

Be dissatisfied
• Complacency with the current state will hinder efforts to identify opportunities
• Drive to find better ways of doing things and have the courage to embrace
change

Actively search for improvement opportunities

• Question the purpose of each activity
• Strive to identify sources of waste
• Consider the production lead time

production lead time = processing time + non-processing time*

Ask for suggestions

• From supervisors and associates
• From managers struggling to hit their targets
Choose a problem, clearly define it, and get started

* non-processing time includes storage time, inspection time, conveyance time 22

STEP 2 – ANALYZE THE CURRENT SITUATION

Get the facts

• Gather information at the source
• Personally observe the machinery and/or activities involved with the problem
• Observe during an occurrence of the problem

Use available techniques for work analysis

• Process and flow analysis
– Understand the sequence of operations and physical routing
• Work element analysis
– Understand the detailed steps of the job
• Motion analysis
– Break the job down into basic motions (find, grasp, position, assemble)
• Time analysis
– Build on the work element analysis by timing each step
• Standardized operations*
– Show the current and future state using standardization forms (below)

Operation Combination Analysis Operation

capacity table sheet instructions

* Refer to separate training module titled Standardized Operations for details 23

STEP 3 – GENERATE ALTERNATIVE IDEAS

Use idea generation methods

• 5 Why analysis
• Brainstorming
• Review the rules for work simplification
– Rules for body motion
– Rules for the workplace (organization, layout, environment)
– Rules for the design of parts, tools, and equipment

Discuss and adhere to rules for generating ideas

• Do not criticize
• Speak freely as you think
• Strive for quantity initially (the more the better)
• Think about issue from different angles
• Piggyback other ideas and integrate ideas

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STEP 4 – CREATE KAIZEN PLAN

Establish kaizen objectives

• Set a quantifiable/measurable targets for improving safety, quality, cost, and/or
delivery for the kaizen target area
• Stress total plant efficiency over efficiency improvements of single processes
• Focus on work kaizen rather than machine kaizen
• Avoid large capital expenditures
Choose the most effective way to deploy resources
• Train supervisors and let them implement in their area(s)
• Form a dedicated kaizen team and hold a kaizen event*
Create detailed kaizen plan describing focus of activities
• Reduce lead time by eliminating wait time, walk time, unnecessary steps
• Improve layout of parts, materials, tools
• Sequence and combine operations differently to balance work and create flow
• Seek and eliminate quality scrap and rework problems
• Create, document, and train employees on new standardized work
• Implement workplace organization and visual performance management

* Refer to separate training module titled Kaizen Events for details

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STEP 5 – IMPLEMENT THE KAIZEN PLAN

Communicate
• Inform related departments likely to be affected by changes
• Brief shop floor employees on kaizen objectives before the activity begins
• Discuss changes with shop floor employees, not only what and how but also why
• Ask for management help when needed to remove barriers to implementation
• Update management daily on progress
Create an atmosphere conducive to change
• Lead by example (remain positive, supportive, and work hard)
• Train employees by working with them at their work station
• Remember that it is unpleasant for employees to perform unfamiliar tasks
• Congratulate employees on their successes
Be willing to alter the plan
• Remind team members that failed trials may occur and are an important part of
the improvement process
• Communicate changes to the plan
• Overcome hurdles rather than extending the implementation timeline

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STEP 6 – CONFIRM AND COMMUNICATE RESULTS
As part of the kaizen activity, the kaizen teams or supervisors must also:
Confirm implementation status of each action item

Confirm actual results quantitatively

• Improvements should be consistently repeatable
• Compare actual results to expected results and perform a gap analysis
• Some problems do not surface until after implementation
• Verify adherence to new work procedures regardless of results
Present results
• Provide an opportunity for the team to present their results (20 minutes)
• Discuss kaizen results compared to plan
• Allow for questions and answers

Standardize the results

• Document new work procedures
• Use new documentation as training aids
Maintain visual performance management and review sessions
• Meet periodically to review performance
• If performance slips, assign additional action items to rectify
• Celebrate success once goals are consistently met
• Seek further improvements
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ANNOUNCING EVENT – KAIZEN ACTIVITY SHEET

Date Project area Current situation and

problems

Kaizen team

Production requirements/takt time

Description of current process Kaizen team objectives

• Distribute 1-2 weeks before event

• Copy the team member’s supervisors

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STARTING KAIZEN TEAM OBSERVATIONS

Look for variation and understand its cause

Where are the parts? Tooling

• Does the operator have to: • What is its purpose?
• Turn? • Does it serve this purpose?
• Reach? • Can it be combined with others?
• Wait? • How can it be better?
• Unpack? • Can tools be reached without having to look?
• Move? • Do parts auto eject from machines?
• Are the parts arranged in the order used?
• Are parts moved twice? Movement
• Is the box too large? • Is there excessive travel?
• Is the flow smooth or erratic?
Is the work cycle consistent ?
• Why is there variation?
• Is it logical? Visual management
• Do employees help each other? • Is the area cluttered?
• Is there wait time? • Are areas/ locations of items marked?
• Are two hands used or one? • Are shelves labeled?
• Do people build ahead? • Are all the items required in the area?

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STARTING KAIZEN TEAM OBSERVATIONS (CONTINUED)

Defects Material handling

• Do they occur? • Is there a material handler?
• What is the problem? • Is there a routine cycle?
• Is there feedback? • How much wait time is in it?
• Is the line disrupted to fix the • How much is value added?
issue? • How large are box quantities?
• How often do they occur? • Can parts be easily picked up?
• Is the specification present and • What can the handler do to reduce the
clear? work content?
• Are limit samples displayed “good/ • What is the standardized work for the
bad”? material handler?
• How much time per hour or shift is
Work cycle used, what time is available for other
• What is the work content? lines?
• What are the lowest repeatable
times (measure 10-15 cycles to
establish)?
• What is the takt time?
• Is the line balanced?
• Which tasks can be moved
around to balance the line?

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WORK KAIZEN VS. MACHINE KAIZEN
15 sec. manual 15 sec. manual EXAMPLE
loading time 40 sec. machine time unloading time

Total work cycle = 70 sec.

Work kaizen focuses on the total Machine kaizen focuses on the total
manual work elements (30 sec.) machine work elements (40 sec.)

• Manual work, unlike machine work, can

be immediately controlled by supervisors
Improve manual and employees
work elements first • Manual work improvements do not
require large capital investments
• Goals often can be achieved solely
through manual work improvements

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UPDATING MANAGEMENT DAILY

Team leader presents to the area manager and plant manager and
possibly management team

Agenda (20 minutes)

• Restate event objectives

• Discuss what was accomplished today
• Discuss next steps for tomorrow

• Discuss what support is needed or roadblocks removed

The presentation should provide an understanding of the progress,
with enough depth so people also appreciate the methods used
(video, props, flip charts, drawings, etc., are appropriate)

The team leaders should expect to be supported, but also challenged

by the facilitator and the management team

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EVENT OUPUTS

Results and actionable items

should be summarized into a
20-minute presentation that addresses
3 main areas:

Quick • Baseline
results – Kaizen activity worksheet
– Current performance
– Current cost
Skill building in
– Goals
problem solving
• Actions
Momentum/actionable items – Actions taken by the team
for implementation teams – Follow-up actions required

• Value
Buy-in/awareness of the workforce – At performance level after event
– Potential performance going
forward
– Quantified results

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MAINTAINING PROBLEM FOLLOW-UP SHEETS

PROBLEM FOLLOW UP SHEET SHEET____________

No PROBLEM CAUSE ACTION Who Date Status

• The team leaders need to take ownership for the outstanding actions and to maintain
the gains for the Kaizen area. If the performance is slipping this has to be
communicated to the senior managers and the kaizen facilitator

• Weekly follow up is required to track the status of the problems and actions from the
event

• A daily follow-up on area performance until the stabilized period; then weekly to ensure
gains are maintained

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 EXAMPLE
DOCUMENTING FOLLOW-UP ITEMS – 30-DAY LIST

Action Owner Target date

• Knowledge transfer of findings • Sam J December 5
– Shifts/plant management
– Spray team

• Implementation to other lines • Kenny S December 5

– 16 oz. beverage
– 12 oz. beverage

• Change computer parameters • Sam J December 12

(green/red/ yellow)

• Organize project for fine tuning and • Brian D November 21

attaining camera

• Submit QCII screen changes to Mike D • Larry H January 1

for cause codes

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LEARNING FROM KAIZEN EVENT – POST IMPLEMENTATION REVIEW

Event name and location

Key measures
• Baseline performance:
• Current performance:

Successes to date:

Shortcomings to date:

Action items to overcome shortcomings:

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