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ContinuousImprovement/BenchmarkingTQM-UniversityofMichigan1PatHammett1ContinuousImprovement“Kaizen”“Ifitisn’tbroke,don’tfixit”Versus“Evenifitisn'tbroke,makeitbetter”2KaizennItmeansgradual,unendingimprovement,doing“littlethings”better;strivingforever-higherstandards.nAccordingtoMasaakiImai&manyotherqualityexperts“KaizenhasbeenthekeytoJapan’scompetitivesuccess.”nFormalrecognitionoftheneedforcontinuousimprovementandplanstoachieveitarenowapartofallqualitysystems.nTheKaizenphilosophyneedstobeappliedtoallaspectsofabusiness.nqualityproblemsmaybecreatedbyofficepersonnelaswellasproductionoperations.ContinuousImprovement/BenchmarkingTQM-UniversityofMichigan2PatHammett3RealKaizenVs.theSaw-ToothEffectSomeQualityMeasure(e.g.,FTTQ)SomeQualityMeasure(e.g.,FTTQ)timetimeSawToothEffect“RealKaizen”4HowmayweachieverealC.I.?ContinuousImprovementCyclePlanActDoCheckPlan-initiatenewactivitiesthatbreakfromcurrentnorms;setnewstandards.Do-implementthesolutionorprocesschange;oftenonasmallscalefirst.Check-reviewandevaluatetheresultsofthechange.Act-reflectandactonlearnings;assesstheresults,recommendchanges,celebratesuccesses.ContinuousImprovement/BenchmarkingTQM-UniversityofMichigan3PatHammett5Plan1Selecttheproblem/processtobeaddressedanddescribetheimprovementopportunity.nlookforchangesinimportantbusinessindicators.nreviewcustomerdata(e.g.,complaints).nexamineinternalfailures(e.g.,scrapcosts).nTools:Brainstorming,CheckSheet,ControlChart,Histogram,ParetoChart,ProcessCapability,RadarChart,RunChart.6Plan(continued)2Describethecurrentprocesssurroundingtheimprovementopportunity.ndeterminescopeofproject.ndescribetheprocessunderstudy.nTools:Brainstorming,FlowDiagramsContinuousImprovement/BenchmarkingTQM-UniversityofMichigan4PatHammett7Plan(continued)3Describethepossiblecausesoftheproblemandagreeonthemainorrootcause(s).ntools:brainstorming,cause-and-effectdiagram,checksheet,paretochart,runchart,scatterdiagram.4Developaneffective,workablesolutionandactionplan,includingimprovementtargets.nplanthechangeprocess:What?Who?When?8Do-Check-ActnDo:Implementtheactionplan.nCheck:Reviewandevaluatetheresultsoftheactionplan.nAct:Assesstheresults,decidethenextsteps.nSomepossibilitiesinclude:nRevisetheactionplan.nDecidetocontinuewithcurrentprocessoractionplan.ContinuousImprovement/BenchmarkingTQM-UniversityofMichigan5PatHammett9ContinuousImprovementCycles(startingpointmayvarybyactivity)nDevelopmentCycle-PDCAnImprovementCycle-CAPDnExampleofCheck-Act-Plan-DoCyclenC:forexample,youmaybeginbyevaluatingtheCpkofyourprocesses,nA:assesstheresults,decidewhatactionplanisneeded.nP:ifvariationproblemexists,identifyaplantoreducevariation.nD:implementthevariationreductionplan.nMaintenanceCycle-SDCAnStandardize-Do-Check-Act10Howdocompaniesimplementcontinuousimprovement?1)EstablishQualityImprovementTeams2)Partofjobdescriptionforcertainemployees(e.g.,qualityengineers,industrialengineers)3)ImplementBenchmarkingPrograms4)SuggestionSystemsContinuousImprovement/BenchmarkingTQM-UniversityofMichigan6PatHammett11SuggestionSystemsnStatedpurpose:utilizeideasofemployeestoimprovecompanyoperations.nOtherpurposeofsuggestionsystem:theyoftenserveasameansforemployeeparticipation.forexample:ngiveworkerrecognition.nbuildworkerpride/loyalty.12KeystoEffectiveSuggestionProgramsnmaintainaplantordepartmentalreviewcommittee;suggestionsshouldnotbereviewedbyareaengineersonly.nsuggestionsneedtobeprocessedinatimelymanner(ingeneral,lessthanamonth).neachsuggestionshouldnotrequireacost/benefitanalysis.Ifmonetaryawardsaregiven,theyshouldbemodest.nemployeerecognitionshouldaccompanygoodideas;forexample,employeebanquetsfortopsuggestionwriters.ContinuousImprovement/BenchmarkingTQM-UniversityofMichigan7PatHammett13MetricsforSuggestionSystemsn#suggestionsperemployeenparticipationrate(%ofemployeeswritingatleast1suggestion)nadoptionrate(%suggestionsimplemented)naveragetimetoprocessasuggestionnExample,Toyota(fromMonden,ToyotaProductionSystem,1993)n40suggestions/person(totalsuggestions/#employees)nparticipationrate:95%;adoptionrate:95%14NUMMICaseExamplenNUMMI-Jointventure:GM-ToyotainCalifornianplantclosedin1982;reopenedin1986(85%oforiginalworkforce)nSuggestionProgramSuccess*:n1986:participationrate=26%n1991:participationrate=92%;80%adopted.Source:Adler,“Time-and-Motion-Regained”,HarvardBusinessReview,1993.ContinuousImprovement/BenchmarkingTQM-UniversityofMichigan8PatHammett15BenchmarkingReference:Ross,Ch8.16Benchmarking(Defined)nitisthecontinuousprocessofmeasuringone’sownproducts,services,andprocessesagainstthoseofbest-in-classcompetitors.nitisalsoatechniqueusedtodeterminehowthebest-in-classachievetheirperformancelevels.nfindingsfrombenchmarkingstudiesmayserveasthebasisforsettingrealistictargetsandbusinessplans.(companiesknowthestandardsareachievablebecauseothercompaniesareachievingthem.)ContinuousImprovement/BenchmarkingTQM-UniversityofMichigan9PatHammett17Whybenchmark?nforcesthemtoquantifytheirperformancenofteninareasnottypicallyexamined,suchaseaseofassembly,packaging,customerservice.nservesasacatalystforchange(change