PDCA cycle and lean manufacturing, kaizen

PDCA Cycle

PDCA cycle, also popularly known as Shewhart cycle is a problem solving process of four stages developed by Walter Shewhart, in the early 1900’s, in the Bell Laboratories, U.S. In the 1950’s quality management guru W. Edward Deming further popularized it and hence the process is also called the Deming Cycle or the Deming Wheel.  It was Deming who coined the term Shewhart cycle after his teacher Walter Shewhart. However, Deming suggested that Plan-Do-Study-Act (PDSA) felt more appropriate than Plan-Do-Check-Act, as ‘Study’ fit the intent of the process better than ‘Check’. Shewhart originally conceptualized this statistical process control for improvement of manufacturing processes.  However, today it has been widely adopted as an effective process improvement tool in organizations. PDCA states that improvement programs should be initiated with systematic planning, which bring about effective results; and then again in a continuous cycle should be followed by careful planning. PDCA cycle Each phase of the PDCA cycle is described below: Plan Identify a problem – Identify a problem that must be addressed. This can be done using Pareto charts or simply through brainstorming Identify the causes – Identify the causes of the problem using a Pareto chart, or by other means Analyse the causes – Determine the cause and effect relationship using various tools such as scatter diagrams, control charts, etc. Do Implement a change that can help the problem – Identify an action that can help solve the problem and implement it Study\Check Observe the effects of the change – Simply implementing a solution will not help. The solution must be effective and long lasting. To make sure of this, the process must be monitored after the implemented changes using tools like histograms, control charts, scatter diagrams, etc Act Fix this change into the system permanently – Ensure that the problem is permanently solved, and embedded it in the system. This model is cyclical and must be followed continually to achieve process improvement. Why use PDCA? PDCA model is a continuous cycle. The power of this cycle lies in its obvious simplicity. It is an effective tool for quality management of processes. It can be used as a problem solving technique. PDCA helps take remedial measures if a process does not turn out as expected. It also helps in the identification of effective solutions that worked for a certain process thus helping its implementation for other processes. In spite of being implemented years back, the principles which formed the PDCA foundation are still quite apt for today’s environment. Quality is considered to be quite crucial for any business. It can prove to be gruesome task for those organizations that do not offer quality services, to increase their rate of profit. Error possibility is lowered dramatically when the entire PDCA cycle has been completed on a whole. Thus, the PDCA cycle can prove to be a very helpful process in assessing and ensuring quality in a business. Lean Manufacturing Lean Manufacturing, often termed Lean is a philosophy that was first developed at Toyota, to add value to the customer by eliminating all kinds of waste. It is also referred to as the Toyota Production System, at Toyota. Lean is the elimination of non-value adding activities, which increase the throughput time and reduce customer satisfaction that forms the basis of lean manufacturing.  It seeks to minimize the use of resources and cut costs without compromising on value for the customer. If a customer orders a custom made product, the time taken to deliver it would range anywhere from a few weeks to months depending on the product. However, the amount of time taken to actually produce is less than 10% of the overall duration. The rest of the time is spent in the other phases of production, like ordering the raw material, or its interaction with other departments. Delivering value to the customer would mean delivering the product in the minimum possible time at minimum cost. History A common misconception is that Lean was first developed and implemented in Japan. However, the first known implementation of lean was by Henry Ford a long time before it was popularised in Japan by Taiichi Ohno. Henry Ford keenly observed the manufacturing process and identified the different factors that contribute to waste and affect productivity. He suggested the elimination of unnecessary processes that contribute to waste. However, with time Fords system died a silent death due to uncooperative external factors. Lean again came into the limelight around 1940’s. During the World War II Japan’s economy had been widely affected. Japan had limited access to resources, raw materials and capital. The automobile industry in Japan was not equipped to compete with its western counterparts that catered to a global audience. They made their produce for the local markets. Thus, Lean developed out of the need to manufacture with limited resources to small and diversified local markets. Mr. Ohno, a Toyota senior engineer, identified seven types of manufacturing wastes or “Muda” as a first step towards eliminating waste. He developed a manufacturing system now referred to as the Toyota Production System. Some of Lean’s terms and concepts are explained below briefly. 7 Manufacturing Wastes Lean manufacturing identifies seven types of waste such as Overproduction – the production of an article before there is a requirement Waiting – this is the idle time spent in the traditional batch-and-queue manufacture, while waiting to be processed Transporting – unnecessary movement of materials or delays in moving materials Defects – defective items produced Processing -  unnecessary processes carried out on a product Excess Inventory – unnecessary raw materials stored when not required. Motion – movement of people or equipments that are unnecessary or irrelevant to the final product. 5S The 5S philosophy is based on five Japanese words that begin with “S” and focus on workplace organization. This philosophy forms the basis of Kaizen and Lean Manufacturing toward performance improvement. Sort (Seiri) – Remove unnecessary items from your workplace and leave only the essentials Set in Order (Seiton) – Arrange items in such a way that they are accessible and easy to find Shine (Seiso) –Ensure that your work area is clutter free and wiped clean Standardize (Seiketsu) – Standardize best practises for efficient work environment Sustain (Shitsuke) – Sustain the above changes and make it a part of day-to-day life Just-in-Time Just-in-Time philosophy is the backbone of Lean Manufacturing. It defines the key element of Lean called TAKT time. TAKT is a German word that refers to the beat of music or a rythm. The maximum allowable time taken to produce an item, that meets all quality standards and meets demands, is called TAKT time in lean. It is calculated by dividing the units required per day by the total time available per day. For example, if a customer requires 540 items per day. Say each shift consists of 9 hours excluding break time. Then each shift consists of 9 x 60 = 540 minutes. Thus each item should take 540/540 = 1 min to reach targets.  Thus, the TAKT pace is 1 min per item. Kaizen The term Kaizen is a Japanese word, meaning “continuous incremental improvements”. It is derived from the Japanese words “kai” which means “change” and “zen” which means “good” or “wisdom”. It is a system that involves every member of an organization. It urges every member to regularly think of suggestions for small improvements. These suggestions are usually minor and may not be limited to any particular function in the organization. Kaizen is a continuous process and must be adopted as a way of life. Kaizen The term Kaizen is a Japanese word, meaning “continuous incremental improvements”. It is derived from the Japanese words “kai” which means “change” and “zen” which means “good” or “wisdom”. It is a system that involves every member of an organization. It urges every member to regularly think of suggestions for small improvements. These suggestions are usually minor and may not be limited to any particular function in the organization. Kaizen is a continuous process and must be adopted as a way of life. Key elements of Kaizen are Quality Involvement of all employees Openness to change Teamwork Personal discipline Kaizen uses the Japanese philosophy of improving a system internally, as opposed to European ethics of using external sources for improvement.  Kaizen is an integral part of Lean Manufacturing and Total Quality Management (TQM) Kaizen is also special because it is easy and achievable. It does not involve making big changes or bringing about major improvement in productivity. It is based on making small and achievable improvements. As humans, we are all averse to change and simply out of human nature resist change. It is difficult to get people out of their comfort zones. Kaizen helps people bring about small changes to their lifestyles. These changes are small and when achieved give people the motivation they need to strive for the next incremental change. Another positive aspect of Kaizen is that it involves implementing ideas for improvement by the people themselves. This makes it even more appealing to the employees in an organization. Kaizen is such a system of improvement that is not only applied at the workplace, but can also be applied at home. Some important factors associated with Kaizen are: 5S methodology The 5S philosophy is based on five Japanese words that begin with “S” and focus on workplace organization. This philosophy forms the basis of Kaizen and Lean Manufacturing toward performance improvement. Kanban The word Kanban is derived from the Japanese words, “kan” which means “visual” and “ban” which means “board”.  It is a visual signalling system to control flow of inventory. It is an important concept in lean manufacturing. It emphasises the importance of supply of materials, so that the workers have what they need, when they need it. Getting started with Kaizen Implementing Kaizen can mean a significant change in the corporate culture. Thus, it is a big step and must be followed by every member of the organization for a successful implementation.  Unless all the employees adopt and implement it, kaizen cannot take off. Another difficult aspect of Kaizen is following it permanently. Sometimes even if it is implemented, it gradually fades out of the system. The benefits of Kaizen can be understood, only if radical changes are brought about in the organization, at all levels starting from the senior management to the cleaning crew, without resistance. It is something that all must do willingly, because everyone should be aware of its benefits and results for them and the company. It cannot be forced upon anyone. The management should directly be involved in the implementation. A team must be formed for the implementation. Kaizen makes the employees observe their work, processes, etc and realise the changes that will improve the existing state of affairs. It is also an opportunity to improve the relationship between the employer and employees. Each team can appoint a team leader from amongst them. Everyone is an equal participant in the team, but a team leader is in charge of the regular team meetings, so that Kaizen ethics are not forgotten. Suggestions made by team members must be noted down, and acted upon. If the employees are aware that their suggestions are being taken seriously, it will motivate further motivate them with implementing kaizen. Steps to implement Kaizen Identify a business process, where Kaizen will be applied. Form a team, and educate them about Kaizen, its goals, and its benefits. Choose a team leader within the team, who will guide the team during the implementation. Allow the team to put forward their suggestions, or problems in any of the functions within the organization. Gather more information about the problem, discuss the main causes of the problem, and analyse the causes. Discuss ways in which the problem may be solved, and how to go about it. Identify ways to monitor the changes, to see how successful they have been. Shewhart Cycle or PDCA cycle is also a good place to start, to begin implementing Kaizen. It describes the stages of any kaizen activity. Kaizen Blitz In the United States, an alternative to Kaizen is known as Kaizen Blitz or Kaizen Event. This event is a short term and a focused project to improve a process. This comprises of training the employees of an organization with implementing lean manufacturing and problem solving tools that will aid in improving product quality and its availability. It involves formation of teams that analyse a problem, and bring about changes to fix it. Once the problem is solved, the teams are dissolved. Such an event usually takes about 2-10 days. Mini-Kaizen or Quick Kaizen Mini-Kaizen is Kaizen that is implemented from the very lowest level in the organization.     Every employee is encouraged to note down his ideas or thoughts related to improvements at the workplace. It does not matter how big or small the idea is. They also have to think of ways that their idea will be implemented. It may be as simple as ensuring that energy is not wasted at the workplace by turning lights off before leaving. Quick Kaizen is easy to implement as it introduces Kaizen on a small scale. Its process is described as follows: 1.    The employee must note down a problem, change or an improvement at the workplace. 2.    The employee must then approach his senior with his improvement idea for the existing problem. 3.    The supervisor must review the idea, and encourage immediate action. 4.    The idea is implemented. 5.    The idea is articulated on a simple form. 6.    This form is then shared with others in the organization to encourage others and recognize the accomplishment. Benefits of Kaizen Kaizen events have been used successfully in many companies of different size and industries. An important benefit of Kaizen Event is that within a small frame of time, a problem can be recognized, positive changes developed and implemented. It provides immediate results. It helps in improvement of product quality, communications, use of finances, etc. It also improves employee relations and helps in utilizing employee skills and other resources optimally. However, to truly reap the benefits of Kaizen, it must be implemented on a long-term basis.