Dr.

Marwa abd elghany

Lecture 6

Continuous Improvement

Continuous Improvement can be defined as: the philosophy of spreading

permanent and infinite development in all elements related to the transformation
of inputs into planned outputs that satisfy current and expected consumer needs.

Continuous improvement is a philosophy invented by the main founder of the

Toyota production system, Taiichi Ohno, to lead the organizations. It consists of
two Japanese words: KAI - meaning change, ZEN - meaning good, which
translates to continuous improvement, so Kaizen can be roughly translated from
Japanese to mean "good change."

Continuous improvement is one of the most important methods of Japanese

management followed by Japanese companies. While organizations in the
countries of the Western World consider continuous improvement as an
improvement in the final product, Japanese organizations see improvement not
only for the final product but in the output of any process within the organization.
First: Improvement approaches:

Kaikaku and Kaizen are concepts in Japanese production philosophy

that relate to each other. Both have origins in the Toyota Production System.
Kaikaku means the radical change in activities of the value stream to eliminate
waste during a limited time. Kaizen, on the other hand, is continuous minor
changes of a certain area of a production system; it systematically seeks to
achieve small, incremental changes in processes at a low cost in order to
improve efficiency and quality.
Kaikaku includes more activities than Kaizen. While Kaizen focuses on
secondary or sub-processes, Kaikaku focuses on main processes and achieves

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major changes in the organization's activities. The Kaikaku implementation
requires more planning, longer duration and more resources than Kaizan.
Kaizen and Kaikaku are improvement approaches that complement
each other . Without Kaizen's culture, Kaikaku cannot be succeeded and vice
versa. After applying Kaikaku and making radical improvements in
operations, Kaizen is implemented to make continuous improvements. The
incremental improvements of Kaizen may lead to Kaikaku if these gradual
improvements cause a major change in the organization's operations.
Compare between Kaikaku and Kaizen

Kaikaku Kaizen

Radical change Incremental and small-step changes

Wide-ranging activities Narrow-focused activities

Effort has a definite period of time Continuous effort

Focuses on the main process Focuses on secondary or sub-processes

Needs more planning, longer duration Needs less planning, time and resources
and more resources

The third improvement approach is kakushin approach which refers to

an 'innovative or a transformative' change, which will result in complete
departure from the current situation. Kakushin calls for "out of the box"
thinking and could lead to discovering new product. The goals of kakushin is
to change the current system and make a new one, with new rules to make a
new and more innovate products.

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 Second: Gemba Kaizen:

Gemba is a Japanese term meaning "the actual place". Kaizen is often

combined with gemba, the Japanese technique to optimize the workplace.
Overall, it means continuous improvement in workplaces. Continuous
improvement is based on the rule that: there are always better ways to do
things, every work done can be improved and every process contains
waste,reduce or eliminate this waste produces added value to the process.
Gamba Kaizen is a systematic approach to identify, reduce and eliminate:
-Muda: A Japanese word that means non-beneficial work that does not add
value but adds cost (the seven wastes).
-Mura: A Japanese word means inconsistency or instability in the
manufacturing process. It is responsible for many of the 7 wastes of Muda.
-Muri: A Japanese word means stress and fatigue resulting from frequent
bends or twisting at work, or pushing strongly heavy weights or repetitive
tired work or frequent walking and useless movement.
Third:Types of wastes ( seven wastes):

The seven wastes identified by Taiichi Ohno, the father of the Toyota
Production system (TPS). The simplest way to describe waste is "anything
that does not add value to the product in any activity, whether industrial or
non-industrial".
Type of waste Example
Defects Defects refer to a product deviating from its required
specifications or from the customer’s expectation may be:
damaged units
Waiting Time Waiting time refers to wasted time because of delay due to
machine failure, and delay in operations due to spoiled raw
materials.
Overproduction Overproduction can cause excess inventory. Stocking too much
of a product that goes unused has obvious costs: storage, and
excessive capital tied up in useless inventory.

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Unnecessary Motion Wasteful motion is all motion, whether by a person or a machine.
Are the excess movements of individuals or machines than the
desired amount for the performance of industrial processes for
example: a worker bending over to pick something up on the
factory floor.

Inventory Inventory waste refers to the waste produced by unprocessed

inventory. This includes the waste of storage, the waste of capital
tied up in unprocessed inventory.
Unused Employee Failure to interact and listen to staff suggestions for proposed
Creativity improvements results in waste of time, elimination of skills, and
loss of opportunities for improvement.
Over processing Over-processing refers Painting an area that will never be seen or
adding features that will not be used are examples of over-
processing.

Fourth: Elimination of waste:

Organizations can eliminate the wastes by using the following mechanisms:

-Understanding the defect: removal of waste depends on the understanding

and participation of all workers in the removal of waste from their workplace.

-Kanban cards: Is a Japanese word meant to have light signals "visual

signal" in the work environment using cards that express the need for raw
materials or different parts, it is used to track production within a factory.

-Jidoka (Quality at Source): The term Jidoka used in Toyota production

system (TPS), and is applied to a machine that moves on its own with a built-
in device for making judgments. Jidoka refers to "automation with a human
touch", this means that if an abnormal situation arises the machine stops and
the worker will stop the production line.

-Poka-yoke (Mistake Proofing): is the principle of setting up procedures

using equipment that prevent mistakes from turning into defects. For example,
suppose that in an assembly process a worker is responsible for adding five
components to a product moving along an assembly line. One poka-yoke
technique is to prepare a container that holds the five components thus, if any
items are not installed they would remain in the container and this would be
obvious to the assembler.
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-Five S: It is a five-step for organizing the workplace that uses a list of five S
"Sort", "Set In order", "Shine", "Standardize", Standardize the same process in
different workstations and "Sustain", Sustain in the sense of continuing to
maintain workplace discipline. The five s help create a better environment that
access to tools and information in an easy and fast way, and the workplace is a
good place to work and safe at the same time, and maintain the safety of
workers.

-Pull System: It is the method of pulling the production order from the
previous production center to the next production center in the case of the
readiness of the next center completely to run this command and thus no
bottlenecks and problems with the greatest enemy, which is the time.
-Single Minute Exchange of Dies (SMED): it aims to prepare the machines
with the maximum speed and accuracy when moving from one order to
another, by checking and evaluating the machines and choosing the best
simplifying, standardizing procedures of that process
-Cellular Manufacturing: In Cellular Manufacturing, equipments are
arranged in a U-shaped layout to maintain a smooth workflow of materials
and component through the process (flow of work in process) .
- Value Stream Mapping (VSM): is a collection of all value added and non
value added activities that are required to manufacture a product, so it is a
method for analyzing the current state and designing a future state for the
series of activities that take a product or service from its beginning through to
the customer. A value stream focuses on areas that add value to a product, so
the purpose of VSM is to identify and remove or reduce all source of "waste"
in value streams.
There are 3 types of activities:
✓ Non-Value adding (NVA): activities that should be eliminated (muda
/waste).
✓ Necessary but non-value adding (NNVA): activities that are wasteful
but necessary, activities that should be done even if it doesn't add under
current operating procedures.

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 ✓ Value-adding (VA): essential activities.

Fifth: Goals of continuous improvement:

The main objective of continuous improvement is to eliminate waste or loss of

operations as much as possible, thus improving operations, which lead to:

1. Increasing customer satisfaction: by providing the products with the

required quality , at the required time, with the required quantity, in the
desired location at a suitable competitive price
2. Increase productivity: productivity means the degree of utilization of
available resources, and related to perform in a correct way, to
maximize output with minimal input.
3. Strengthen the competitive position: Improving productivity means
reducing the cost of production per unit, thus the ability to sell at a
competitive price, thereby obtaining a greater market share, as the
previous objectives have achieved, improving the image of the
organization in the minds of consumers, thus strengthening its
competitive position.
4. Reducing process time.
5. Strengthen the financial position.
6. More engaged employees.
7. Having a proactive learning culture.

Sixth: Characteristics of continuous improvement process:

1. A permanent improvement process.

2. Focus on important and strategic areas.
3. Achieve quick results.
4. Including all the activities of the Organization.
5. With the participation of all.
6. Do not receive resistance.
7. Measurable.
8. Lower cost.

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 Seventh: The process improvement cycle:

1. Select the process that will be improved, and set the goals for improvement.
2. Analyze and document the current process.
3. Identify methods to improve the process, and choose the most appropriate.
4. Design the improved process.
5. Apply the improved process.
6. Evaluate the improved process, and see how well the optimization goal is
achieved.
7. If the goal is achieved, document the improved process, publish it, and train
the staff. If the goal is not achieved repeat steps 4-6 until satisfactory results are
obtained.

Select the
process
If the goal is
achieved,
Analyze
document the and
improved document
process, the current
publish it, and
train the staff. process

Identify
Evaluate methods to
the improve the
process, and
improved choose the
process most
appropriate

Apply the Design the

improved improved
process process

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Eighth: The process improvement tools:

There are a number of tools that can be used for problem solving and process
improvement.

1. The 5W2H Approach:

5W2H stands for 5 Ws and 2Hs or Who, What, When, Where, Whey
How and How much. When working on improving a process, this is a very
simple tool to help you think through improvement opportunities. This tool
depends on asking questions about current operations which lead to a clear
understanding of current operations, whether they are working as they should,
and why they are ineffective or inefficient.
Who does this?
What is done at this step?
When does this start and finish?
Where is this work done?
Why are we doing this? This can lead to, do we need to do this?
How do we do this?
How much does this cost?

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2. Flowcharts:

Flowchart is a problem-solving tool, a method used to illustrate the main

steps of the process, it is necessary - for purposes of improvement - to
describe the work as in the current method and in the proposed method, by
drawing a graphical flow of the process , which can help investigators in
identifying possible points in a process where problems occur.

3. Scatter Diagrams

A graph that shows how two variables are related to one another and
data can be used in a regression analysis to establish equation for the
relationship between these two variables.

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 4. Pareto Analysis:
Pareto pointed out Pareto concept which indicates that 80% of the
problems occur as a result of 20% of the causes. For example, 80% of
machine breakdowns occur as a result of 20% of the causes. Or 80% of the
takeoff delays are due to 20% of the causes or problems such as delayed
arrival of passengers, delayed in baggage transfers or delayed cabin cleaning.

5. Checklist

Simple data check-off sheet designed to identify type of quality

problems at each work station; per shift, per machine, per operator.

6. Brain Storming:
Is a way to get the largest number of ideas from a group of individuals
in a short time, is a method of collective thinking to solve a set of problems,

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provided that this thinking is conducted in an appropriate climate. The aim is
to create a free flow of ideas and try to find reasons, solutions and ways to
implement solutions. It is important to welcome all ideas, however modest,
and members should not criticize any idea. And that no member dominates or
influences the idea of other members. This is the responsibility of the team
leader.

7. Cause- and – Effect Diagrams

This method is based on identifying the main causes of the problem and
analyzing it to its sub-causes. The main causes are identified initially and then
analyzed for sub-causes, other sub-causes, and so on. This tool is called the
Ishikawa Plan for the Japanese scientist who invented this scheme.
Fishbone analysis was also named because of its shape, which
resembles a great structure of a fish. This scheme can be used after
brainstorming sessions to organize the ideas generated by these sessions, and
their contribution as solutions in improving the process or in solving the
problem in question.

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8. Control Charts

Important tool used in Statistical Process Control, identifies the UCL

and LCL which are calculated to represent the limits to show when process
is in or out of control.

9. Histograms

Histogram is a chart representing a frequency distribution of observed

values of a variable like service time at a bank drive-up window; heights of
the bars represent observed frequencies.

Displays whether the distribution is symmetrical (normal) or skewed.

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