Kaizen Event Fieldbook - Foundation, Framework, and Standard Work for Effective Events

274 Pages·2010·13.36 MB·English

by  Mark R.

Kaizen Event Fieldbook
Foundation, Framework, and Standard Work
for Effective Events
Mark R. Hamel
with foreword by Arthur Byrne
Copyright © 2010 Society of Manufacturing Engineers
9876543
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Foreword Kaizen Event Fieldbook
FOREWORD
I began my own lean (kaizen) journey in Janu- the Jacobs Chuck Company. The results at both
ary of 1982 when I became general manager of were amazing.
the High Intensity and Quartz Lamp Depart- They both were so bad when we started, how-
ment of the General Electric Company. We initi- ever, that we couldn’t get Shingijutsu to work
ated a simple kanban pull system between my with any of our other businesses until they
department and one of my suppliers who was were comfortable that Brake and Chuck were
also a part of GE’s Lighting Business Group. far enough along on their lean journeys. After
My inventory of quartz arc tubes (the initial several years we got them to branch out into a
kanban target) dropped from 40 days to 3 days couple of my other businesses, but that still left
and my supplier department totally eliminated the bulk of the Danaher divisions without any
the inventory of these parts. The side benefits lean help. To solve this problem, we instituted
were so significant that I was hooked: space freed what we called the “President’s Kaizen” to
up, better customer service, better quality, and spread the knowledge and speed the implementa-
higher productivity. Implementing the Toyota tion throughout the rest of the company. Every
Production System in all the businesses I ran six weeks, a series of kaizen events were held in
after that became my priority. a Danaher plant where the kaizen team mem-
I wasn’t exposed to the Toyota kaizen event bers were the 13 division presidents and their
approach, however, until after I left GE at the end vice presidents of operations. We made a lot of
of 1985 when I joined the Danaher Corporation progress and had a lot of fun along the way.
where I was a group executive responsible for In the end, lean (the Danaher Business Sys-
eight of its then 13 companies. In the summer tem) became the way of life for Danaher and
of 1987, Danaher became the first U.S. client of resulted in a price-to-earnings multiple that was
the recently started (1986) Japanese consulting double that of other similar companies. This, plus
company, Shingijutsu. All three of the Shin- a lean culture, has allowed Danaher to be one of
gijutsu founders (along with the fourth initial the best-performing public companies over the
partner who joined them a year later) had spent past 20 years.
their entire careers at Toyota. For a number of In September of 1991, I took the lessons
years prior to founding Shingijutsu, they worked learned and became CEO of the Wiremold Com-
directly for Taiichi Ohno, the father of the Toyota pany headquartered in West Hartford, Conn. and,
Production System, implementing TPS in the as they say, the rest is (lean) history.
Toyota group companies and in the tier one sup- While kaizen events are an extraordinary con-
plier group. Their initial kaizen efforts focused tinuous improvement delivery and deployment
on two of my companies, Jacobs Engine Brake mechanism, it is important to make the distinc-
(Jake Brake) Company and its sister division, tion that they do not equal lean. In fact, many
xv
Kaizen Event Fieldbook Foreword
people mistakenly and myopically believe that every four years). More importantly, we were able
because they are doing kaizen events, they are to take a company that was valued at $30 million
“doing” lean. This couldn’t be further from the at the end of 1990 and sell it for $770 million in
truth. Lean transcends tools, events, and even the summer of 2000 (a gain of 2,467%).
systems. The Fieldbook recognizes this reality These types of results may seem other-worldly,
and, at the same time, properly asserts that, “a but they need not be. Breakthrough performance
company that does not possess and routinely is achievable no matter the industry or value
exercise the capability to effectively target, plan, stream. Lean is not, as was initially claimed by
execute, and follow through on their kaizen the naysayers, limited to the automotive indus-
events, including the non-negotiable require- try; nor is it only a manufacturing “thing.” Due
ments to comply with the new standard work to to its universal principles and common enemies
sustain the gains, cannot and will not successfully (waste, unevenness, and overburden), lean and
transform themselves into a lean enterprise.” In with it, kaizen, extends to healthcare, financial
other words, get good at kaizen and sustaining services, insurance, government, transportation,
the gains, or forget about lean. entertainment, etc.
It is for this very reason that I, as Wiremold Mark Hamel is a lean teacher, a sensei, who
CEO, personally trained hundreds of employees has studied under some of the very best and has
in lean principles and then personally facilitated learned by doing. He has the mind and motiva-
dozens and dozens of kaizen events. On the heels tion of a learner, as evidenced by his “arrange-
of the launch, we made use of the best sensei to ment” (through a colleague’s wife who happened
accelerate and expand lean learning and applica- to work for me at Wiremold) of a 1994 presenta-
tion through kaizen events. One of the sensei, the tion by yours truly at his employer. That pre-
late Bill Moffitt, was my friend and one of Mark sentation sparked a Shingo-Prize-winning lean
Hamel’s teachers. transformation and launched his immersion into
Wiremold quickly supplemented the sensei lean thinking, practicing, and teaching. I have
approach with the development of an internal had the benefit of Mark’s lean implementation
lean function. The people, the true heart and soul expertise at several of my business interests over
behind any lean transformation, responded. The the years.
company’s overall improvements approximated The full name of his work, The Kaizen Event
the typical kaizen event results. For example, Fieldbook: Foundation, Framework, and Stan-
from the end of 1991 until the middle of 2000: dard Work for Effective Events, like the page
count, is pretty big. It’s big, but very important.
(cid:78) delivery lead time was compressed from 4–6
The Fieldbook should be required reading for
weeks to 1–2 days,
any enterprise that truly seeks to become lean.
(cid:78) product development lead time dropped
It necessarily addresses the basic foundation of
from 2 years to 3–6 months,
lean and the roots of kaizen. Further, it briefly
(cid:78) space requirements were halved,
explores something very near and dear to my
(cid:78) inventory turns increased from 3 times to
heart, lean leadership. And, it lays out the stan-
18 times,
dard work for how to “pull” kaizen by recognizing
(cid:78) productivity improved by 162%,
strategic imperatives and value stream improve-
(cid:78) customer service satisfaction went from 50%
ment needs, and then rigorously planning, ex-
to 98%, and
ecuting and following through on each kaizen
(cid:78) the gross profit percentage gained 13
event. Finally, the Fieldbook provides insight into
points.
how best to establish your own lean function or
The enterprise-wide improvements drove a 13.4 kaizen promotion office.
fold increase in operating profit while sales In short, for those who are profoundly com-
growth, aided by acquisitions that were enabled mitted, lean transformation efforts are abso-
by drastic working capital reductions, resulted in lutely worth the necessary blood, sweat, and
Wiremold being able to double sales twice (once tears. Ineffective kaizen events, however, induce
xvi
Foreword Kaizen Event Fieldbook
disproportionate and unnecessary suffering and
can quickly derail a lean implementation. The
prize goes to those who understand that much
of lean is about working smarter, not harder.
The Fieldbook positions both the practitioner
and the lean leader to work a lot smarter and a
lot more effectively.
What now? Go to the gemba and put the Field-
book in action!
Arthur Byrne
Operating Partner
J.W. Childs Associates, L.P.
Retired Chairman, President, and
CEO of the Wiremold Company
Avon, Conn.
September 8, 2009
xvii
Foreword Kaizen Event Fieldbook
CONTENTS
About the Author.............................................xi Emotional Scope ................................... 54
Acknowledgments .........................................xiii A Transformation Leadership Model ....... 61
Foreword .......................................................xv Summary .............................................. 64
Part I—Foundation and Framework
Part II—Standard Work: The Multi-phase
1 Getting Started............................................3 Approach
Kaizen Event Effectiveness: Prerequisite
4 Strategy—Right Wall, Right Ladder..............69
for Lean Transformation ........................ 3
Phase 1: Strategy .................................. 69
Audience ............................................... 4
Strategy Deployment ............................. 72
Purpose of the Fieldbook ........................ 8
Long-term Scheduling ........................... 78
What the Fieldbook is Not ....................... 9
Summary ............................................. 82
How to Apply the Fieldbook .................. 10
Fieldbook Structure ............................... 10 5 Plan for Success.........................................85
Summary ............................................. 12 Phase 2: Pre-Event Planning .................. 85
The Four Planning Sub-processes ........... 86
2 A Short Course in “Kaizenology” ................13
Event Selection and Definition ................ 88
Kaizen Defined ..................................... 13
Communication .................................. 108
Muda and His Two Brothers ................... 13
Pre-work ............................................. 111
The Heritage of Kaizen .......................... 16
Logistics ............................................. 116
A System Perspective ............................. 21
Summary ............................................ 117
Tool-, System-, and Principle-driven
Kaizen ................................................ 28 6 Event Execution........................................121
Kaizen Event Pull ................................... 29 Phase 3: Event Execution ..................... 121
Two Basic Levels of Kaizen ..................... 31 Kick-off Meeting .................................. 123
The Lean Business Model: Context for Pre-Event Training ............................... 127
All Kaizen ........................................... 32 Kaizen Storyline .................................. 132
The Kaizen Event: Rapid Improvement Team Leader Meetings ......................... 155
Vehicle ............................................... 36 Work Strategy and Team Effectiveness .. 158
Summary .............................................. 36 Report-Out ......................................... 172
Recognition and Celebration ............... 175
3 Transformation Leadership.........................39
Summary ............................................ 176
Leadership Trumps All ........................... 39
Technical Scope .................................... 40 7 Follow-through........................................179
The Lean Performance System ............... 43 Phase 4: Event Follow-through ............. 179
Lean Transformation Leaders ................. 52 Event Management Improvement ......... 188
ix
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Communication.................................. 192
Record Retention ................................. 193
Summary ............................................ 194
Part III—Developing Internal Capability: The
Lean Function
8 The Kaizen-ready Enterprise.....................197
Making Kaizen Your Own .................... 197
Kaizen Promotion Office ...................... 200
Kaizen Promotion Officer Selection ....... 212
Next Steps .......................................... 216
Summary ............................................ 217
Bibliography ...............................................219
Glossary .....................................................221
Appendix A: Blank Forms ............................229
Appendix B: Daily Kaizen—Beyond the Event...249
Index..........................................................255
x
PART I
FOUNDATION AND FRAMEWORK
3
Kaizen Event Fieldbook Chapter 1:
1
GETTING STARTED
KAIZEN EVENT EFFECTIVENESS: PREREQUISITE FOR LEAN partly addressable by the effective removal of
TRANSFORMATION the second barrier. Competency and success are
effective countermeasures to many of the root
Over the past decade, there has been an explo-
causes of resistance.
sion of lean studies. The types of media and de-
One of the most significant components of
livery vehicles that have been deployed are many,
implementation know-how is the kaizen event.
including books, magazine articles, white papers,
While the engine of any lean transformation is
conferences, seminars, certifications, “belts,” and
people, the kaizen event is a primary vehicle for
blogs. The subject matter spans from the elemen-
engaging the hearts and minds of the workforce.
tal with a focus on specific tools and techniques
Kaizens teach people how to see, think, and feel
to the more holistic where the emphasis is more
within the context of lean and, ultimately, how to
systemic and enterprise-wide.
rapidly and effectively deploy their improvement
Yet, despite the proliferation of lean “knowl-
ideas to address high-impact opportunities.
edge” and lean activity at the gemba (the Japa-
In fact, there is a lot of talk about material
nese term for the “actual place” where the work
and information flow within the scope of value
is done), many companies are still struggling to
stream mapping specifically, and lean in general.
find their way. A recent study reflects that 59%
Kaizen is much about idea flow—first getting the
of the 2,500 business people surveyed were ei-
ideas, big and small, to flow within a scientific
ther in the planning or early stages of lean, as
construct and then ultimately implementing
contrasted with the 7% allegedly enjoying an
them and sustaining results. In the end, it is
“advanced” level of lean implementation and
34% at “extensive.” The same survey respon-
dents identified their company’s primary barriers
to the creation of a lean enterprise as: Over 35 real life
stories are interspersed
1. pushback from middle management (36%),
throughout the Field-
2.lack of implementation know-how (31%),
book. These “Tales
3.employee resistance (28%), and
from the Gemba,” or
4.supervisor resistance (23%) (Lean Enter-
“Gemba Tales” for short, are based upon the expe-
prise Institute 2007).
riences of the author and other lean practitioners.
The stories provide insight into the application of the
All of these barriers, except the second, are of
concepts. Sometimes they reflect success and other
a change management and transformation lead-
times failure, but the intent is always to teach and, if
ership nature. However, it is safe to say that the
possible, share some gemba humor.
remaining barriers are, directly and indirectly,
Kaizen Event Fieldbook 3
Kaizen Event Fieldbook Chapter 1: Getting Started
this is to be expected; people are at the beginning
of the learning curve. However, kaizen event
Kaizen
malpractice will eventually limit the success of
The word “kaizen,” Japanese for continuous im-
the fledgling transformation.
provement, and more formally defined in Chapter
Flawed kaizen management approaches sap
2, is used as both a noun and a verb. As a noun,
the vitality out of any lean transformation effort.
“kaizen” is shorthand for a kaizen event or a smaller
Effective lean leaders employ and propagate best
discrete kaizen activity, while kaizens (plural) is for
multiple kaizen events. As a verb, it represents the practices, “standard work” in lean parlance, to
action of continuous improvement. limit malpractice and dramatically increase the
odds of success.
Standard work, also known as standardized
work, is a fundamental lean tool that explic-
about human return on ideas. Of course, one itly defines and communicates the current best
central and pragmatic tenet is that kaizen must practice (least wasteful) for a given process that
be done with people and not to people. The kaizen is dependent upon human action. It provides a
(and lean) foundation is built upon humility and routine for consistency, relative to safety, qual-
respect for the individual. ity, cost, and delivery, and serves as a basis for
Some may judge this a bold statement, but . . . improvement. Standard work is comprised of
A company that does not possess and routinely three basic elements:
exercise the capability to effectively target, plan,
1. takt time (rate of customer demand),
execute, and follow-through on its kaizen events,
2. work sequence, and
including the non-negotiable requirement to com-
3.standard work-in-process.
ply with the new standard work to sustain the
gains, cannot and will not successfully transform The notion and relevancy of kaizen event stan-
into a lean enterprise. Kaizen event effectiveness dard work is addressed throughout this book.
is thus a prerequisite for lean transformation suc-
cess and a precursor of a daily kaizen culture. Due AUDIENCE
to the dynamics of transformation leadership, the
This book is written primarily for lean practitio-
converse is not necessarily true; a company can
ners, both existing and aspiring, whose population
be good at kaizen events, but still fail in its effort
is comprised of three groups (see Figure 1-1):
to become lean.
1.kaizen technologists and facilitators in the
The scope of this book is primarily limited to
kaizen promotion office,
kaizen standard work and event management.
It is focused on imparting the reader with the
strategies, tools, and techniques necessary to
conduct effective kaizen events, with some for-
The Universality of Kaizen
ays into other supporting elements of the lean
Kaizen “works” in every industry and, by extension,
enterprise. However, before beginning, it is useful
every enterprise. This can be deduced from vast em-
to understand some of the symptoms of ineffec-
pirical evidence and corroborated by the experiences
tive kaizen events. Table 1-1 will help the reader
of lean practitioners far and wide. So why is kaizen
discern whether there indeed may be a kaizen
so universal? Every value stream is comprised of
performance gap within his or her organization.
processes which, in turn, are comprised of activities.
During the outset of a lean launch the symp- Virtually every activity has a measure of waste, some a
toms outlined in Table 1-1 are imperceptible to lot, some a little. Kaizen does not discriminate, waste
all but the most experienced. The symptoms are is waste. Kaizen’s very core is about identifying and
often masked by the initial energy and euphoria eliminating waste with a vengeance and implement-
that accompany any new initiative, and the first ing management systems to ensure sustainability of
flurry of activity and the easy elimination of the the improvements.
most egregious forms of waste. To some degree,
4