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Kaizen
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KAIZEN
KAIZEN PROGRAM
June 2013
An Continuous Improvement Program That Appreciates Ideas
Kaizen Program
KAIZEN
1
Agenda Items
KAIZEN PROGRAM
Kaizen History & FeaturesKaizen Program BenefitsKaizen Program IntroductionKaizen Proposal FormProcess OverviewKaizen AwardsProgram Cost vs. SavingsKaizen PanelContinuous Improvement
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4
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5
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2
9
KAIZEN
Kaizen History & Features
Developed by Japanese companies
A combination of two Japanese symbols:
“Better” & “Change” (Continuous Improvement)
Widely recognized and adopted by many famous
Fortune 500 companies world-wide and spreading
Participation of the employees on their own initiatives Effective approach for vitalizing organization management
Gives credit directly to committed talented staff and managers
Starts with many small improvements without significant investment
A continuous improvement practices derived from daily work/operations
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1
KAIZEN
Kaizen Program Benefits
IMPROVE Quality
Process
Savings
Safety
Staff Satisfaction
Customer Service
Resource Utilization
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“Total focus on a defined process to create radical improvement in a short period of time”
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REDUCE Time
Cost
Errors
Inventory
Space
Waste
Efforts
KAIZEN
Kaizen Program Introduction
Require minimal resource/budget
Managed by 5 “Kaizen Panel” members
Support company objective, goals and strategies
Introduction and dissemination of KAIZEN practices Organized efforts of all company departments/divisions
Sustainable basis for improvement of quality & productivity
Project is administered by HR with technical assistance from all units
HR will track the status of all submitted Kaizen ideas and produce reports
It is a strategy to improve things through many small incremental improvements
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3
KAIZEN
Kaizen Proposal Form
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4
KAIZEN
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Process Overview5
Supporting Documents+1
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3
Kaizen Proposal Form
KAIZEN
SubmitIdea
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Process Overview
ApproveIdea
ImplementIdea
Champion fill “Kaizen Proposal Form”
Champion attach supporting document(s)
Panel member checks if form is complete
Panel member assign Kaizen Number
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KAIZEN
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Panel discuss idea with champion (if needed)
Panel review and endorse proposal
Panel awards Kaizen points
Sponsor approve the idea
Copy sent to Champion & Sponsor
Process Overview
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100
150
200
250
300
Kaizen Points
5
SubmitIdea
ApproveIdea
ImplementIdea
KAIZEN
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Sponsor lead the implementation
Panel confirm implementation
Panel award Kaizen Points
Copy sent to Champion & Sponsor
Process Overview
500
1000
1500
2000
2500
3000
Kaizen Points
5
SubmitIdea
ApproveIdea
ImplementIdea
KAIZEN
Kaizen Awards
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Gold
Kaizen
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Provide More Parking to company Staff 800
Improve Truck Traffic Coming Into Terminal 1300
Reduce Custom Clearance Time 3500
10,000 Points
Example
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John Smith Kaizen Proposals
2011 Points
Prevent Safety Accident in Shipment Yard 600
Include company Banner on 1000 Websites 1100
Introduce Recycling “Blue Bin” Under Each Desk 2700
2012 Points
Total
10,000
KAIZEN
Kaizen Awards
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Gold
Kaizen
Silver
Kaizen Bronze
Kaizen
12 3
2 COSTA Cruise Vacations
Family Health Club Membership
2 Travel Economy Gift Tickets
Gold Gift Voucher
2-Days Hotel Vacation
2 Health Club Memberships
Family Boat Cruise with Dinner
Silver Gift Voucher
1-Day Hotel Vacation
1 Health Club Membership
Family Restaurant Dinner
Bronze Gift Voucher
5000 Points10,000 Points
3,000 Points
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Example
KAIZEN
In recognition of your Kaizen efforts during year 2011. You have been granted a Kaizen Gold Award for practicing kaizen
spirit in accordance with our company continuous improvement program.
Mr. John Smith
YOUR COMPANY
nameChief Executive Officer
NameKaizen Program Manager
改善Kaizen Gold Award
10,000 Points
Gold
Kaizen
Business Development Division
KAIZEN
4.1¢13.3%Non-Cash
Incentive
12¢13%Cash
Incentive
Cost per Incremental
Dollar
Performance Improvement
“People, Performance and Pay: Dynamic Compensation for Changing Organizations”- The Hay Group
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7
“Cash vs. Non-Cash Rewards”
Kaizen Program Cost vs. Savings
KAIZEN
Kaizen Program Cost vs. Savings
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Gold
Kaizen
Silver
Kaizen Bronze
Kaizen
12 3
3
Cost $2,000 x 5
1
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2013 Target =50 Kaizen Proposals 10 Staff Redeem Kaizen Points
Cost $5,000 x 1
Cost $1,000 x 10
Total Cost = $25,000 2013 Total Savings = $1 Mill.
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VS.
2013
KAIZEN
Kaizen Panel
Report progress to top management on total improvements made
Establish and deliver Kaizen training to all employees and managers
Identify top talents and highlight their Kaizen ideas and accomplishments
Approve “Awards List“ given to employees for their improvement efforts
Increase total savings from continuous improvement program at our company
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Kaizen Panel Roles & Responsibilities:
Study Kaizen proposals and award kaizen points
Collaborate with units to promote Kaizen culture
Work with company management to successfully
execute proposed improvement kaizen ideas
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KAIZEN
Continuous Improvement at ADPC
Improvement in all areas of business serves to enhance quality and efficiency at our company.
Three things required for successful kaizen program: operating practices, total involvement, and training.
Supervisors can direct their attention more on improvement than supervision.
Continuous improvement over a long period of time with minimum financial investment, and with participation by everyone in the organization.
Middle management can help create conducive environment for improvement by making employees conscious of their responsibilities for improvement.
Every employee strives for improvement. Top management views improvement as part of our company strategy.
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KAIZEN
Thank You