Kaizen Event

COMPETITIVE KNOWLEDGE NEWSLETTER 

Let's get to it:

If your company is struggling with the effects of downsizing and increasing competition, don't forget to continuously explore outsourcing as an effective coping strategy. Outsourcing can be an effective way to save money on operating costs and reduce worker overload.

Businesses have traditionally cut costs by outsourcing payroll, accounting, and some marketing activities. Today, you have the opportunity to outsource many other activities…training...customer service...manufacturing. Target any activities that aren't classified as core to your business---ones that have little effect on your company's growth and profits.

Our lead article this month is on kaizen (ky ' zen). In the competitive environment that we find ourselves today, only businesses that successfully integrate kaizen into their business culture will continue to grow and prosper. Don't miss reading: "Kaizen, Quick-Hitting Process Improvement."

An important long-term objective of your Competitive Knowledge Newsletter (CKN) is to help business teams reach their full performance potential. Make sure your key people get a chance to read the kaizen article and put its
practical techniques to work.

We are now offering an on-site program to assist companies in implementing a "Quick-Hitting Kaizen Pilot Project." This project can provide the foundation for increasing MRP, ERP and lean manufacturing success. Its application methodology has proven to help manufacturing companies achieve linear
production, decrease cycle times, improve on-time deliveries, improve customer satisfaction and increase productivity. Companies that master the kaizen techniques consistently exceed bottom line expectations. For more
information go to: Kaizen Event

We suggest that you both print and archive this newsletter for current and future reference. Feel free to make copies and share with colleagues.

This newsletter has reached your desk because I think we share a common objective ... to help manufacturing teams avoid "burnout" while achieving their full performance potential. If this is not the case, simply CLICK THE LINK at
the bottom of this newsletter and you will be removed from our mailing list.

Enjoy,

Bill Gaw, President
Business Basics, LLC
bg@bbasicsllc.com
760.945.5596

Competitive Knowledge Newsletter 

Featured Articles in This Month's Edition of CKN

1. Kaizen, Quick-Hitting Process Improvement
2. The A,B,C's of Change
3. How to Write Technical Content for Everyday Readers
4. Are You Being Heard?
5. Help Employees Think Creatively

Kaizen Event for Winners

1. KAIZEN, Quick-Hitting Process Improvement
    by Bill Gaw

Total Customer Satisfaction, Theory of Constraints, Materials Requirement Planning, Enterprise resource Planning, Just-In-Time, Total Quality Management, Business Process Reengineering and Flow Technology are some of the programs that have been launched in industry over the last decade. While some companies implementing these programs have achieved significant advances in quality, speed and costs, most have failed to achieve promised results. According to industry gurus, the winners attribute their success to adopting the following management practices:

• Creating a clear vision or strategy

• Real-time management commitment

• A focus on processes rather than results

• Timely management support

• Effective tactical planning

• Ongoing relevant training

• Empowering a qualified program champion

• Team dynamics development

• Monitoring tactical execution

• Implementing a recognition/reward system

We agree with the above list, but we believe that most companies employ most of these management practices in their business. Why is it then that when most companies launch a new quality, production or inventory control program it slowly and gradually transcends into just another failed management attempt to improve performance? "New programs never thrive, they just fade away" is the hallmark of such companies and consequently they never reach their full growth and profit potentials.

So if the above list of management practices doesn't really separate the winners from the also-rans - what does? Why are some companies successful at obtaining positive results from such programs while other companies fail? If its not on the above list of management practices - what is it?

A study of successful companies will invariably show that they have developed a culture of gradual, continuous improvement. This culture provides the basis for new program implementation success. The Japanese call it kaizen - a management culture of gradual, continuous improvement. We describe it as "a tenacious focus on quick-hitting, process improvements." If you doubt the power of gradual, continuous improvement you need to study the careers of Vince Lombardi and Tiger Woods. Their huge success stories are testimonials to kaizen. Vince Lombardi focused his players on the continuous improvement of the execution of basics - that's kaizen! Tiger Woods attributes his success to his relentless quest for a better swing, for higher quality gamesmanship and a daily pursuit of perfection - that's also kaizen!


In business, kaizen focuses on three basics; Workplace Effectiveness, Elimination of Waste and Standardization. As an introduction to kaizen, we have delineated below their most important features:

WORKPLACE EFFECTIVENESS

The 5Ss:

1. Sort - - - - - Separate work-in-process, tools, machinery, products and documentation into necessary and the unnecessary and discard the unnecessary.

2. Straighten - - For easy and fast access when needed, everything has a place and everything is in its place.

3. Scrub - - - - - Keep machines and working environments clean.

4. Systematize - - Develop routine practices for cleaning and checking.

5. Standardize - - Follow procedures and standardize. Continuously improve processes and reestablish standards.

ELIMINATION OF WASTE, STRAIN AND DISCREPANCY

A simple checkpoint systems

1. Manpower

2. Technique

3. Methods

4. Time

5. Facilities

6. Jigs and Fixtures

7. Materials

8. Production Volume

9. Inventory

10. Place

11. Way of thinking

The Five Ws and the One H

WHO - Who does it? Who is doing it? Who should be doing it?
Who else can do it? Who else should do it?

WHAT - What to do? What is being done? What should be done?
What else can be done? What else should be done?

WHERE - Where to do it? Where is it done? Where should it be
done? Where else can it be done? Where else should it be
done?

WHEN - When to do it? When is it done? When should it be
done? What other time can it be done? What other time should
it be done?

WHY - Why does he do it? Why do it? Why do it there? Why do
it then? Why do it that way?

HOW - How to do it? How is it done? How should it be done?
Can this method be used in other areas? Is there any other
way to do it?

Problem-Solving Tools

1. Pareto diagrams - Used to display the relative importance of all of the problems or conditions in order to: choose the starting point for problem solving, monitor success, or identify the basic cause of a problem.

2. Cause-and-effect diagrams - Used to identify and explore and display the possible causes of a specific problem or cause.

3. Histograms - Used to discover and display the distribution of data by bar graphing the number of units in each category

4. Control Charts - Used to discover how much variability in a process is due to random variation and how much is due to unique events and/or individual action in order to determine whether a process is in statistical control

5. Scatter diagrams - Used when you need to display what happens to one variable when another variable changes in order to test a theory that the two variables are related.

6. Graphs - There are many kinds of graphs employed depending on the shape desired and the purpose of analysis. Bar graphs compare values via parallel bars, while line graphs are used to illustrate variation over a period of
time. Circle graphs indicate the categorical breakdown of values; radar charts assist in the analysis of previously
evaluated items

7. Checklists - Used to gather data based on sample observations in order to begin to detect patterns. This is the logical point to start in most problem- solving cycles.

Kaizen calls for use of the full PDCA (Plan, Do, Check, Action) problem- solving cycle. PDCA demands that team members not only identify problem areas but also identify the causes, analyze them, implement and test new
countermeasures and establish new standards and/or procedures.

STANDARDIZATION

Objectives

1. Represent the best, easiest and safest way to do a job

2. Offer the best way to preserve know-how and expertise

3. Provide a way to measure performance

4. Show the relationship between cause and effect

5. Provide a basis for both maintenance and improvements

6. Provide objectives and indicate training goals

7. Create a basis for audit or diagnosis

8. Provide a means for preventing recurrence of errors and
   minimizing variability

The "If not, why not - 5 Whys" checklist

A. Operator

1. Does he follow standards?

2. Is his work efficiency acceptable?

3. Is he problem-conscious?

4. Is he responsible? Accountable?

5. Is he qualified? Experienced?

6. Is he assigned to the right job?

B. Machine/Facilities

1. Does it meet production requirements?

2. Does it meet process capabilities?

3. Is the maintenance effective?

4. Is the inspection adequate?

5. Does it meet quality requirements?

6. Does it make any unusual noises?

7. Is the layout effective?

C. Materials

1. Is there excess work-In-process?

2. Is the right material in the right place at the right time?

3. Is there rework and scrap?

4. Is there any wasted materials?

5. Is the handling efficient?

6. Is the work-in-process damaged?

7. Is the layout effective?

8. Is quality standard adequate?

D. Operations Method

1. Are the work standards effective?

2. Are work standards upgraded?

3. Do methods produce a good product?

4. Is it an efficient method?

5. Does the sequence of work create a smooth flow?

6. Is setup time minimized?

7. Are the temperatures and humidity acceptable?

8. Are the lighting and ventilation adequate?

9. Is there adequate contact with the previous and next process?

Kaizen keeps you thinking and proactive in your pursuit to improve. Bottom line results come slowly but surely and these incremental gains eventually add up to a significant competitive advantage. The spirit of kaizen can also provide innovative actions that can yield amazing breakthroughs in speed, quality and cost.

Without kaizen, you and your employer will gradually become complacent and accept the status quo as your business culture. As we see it, the lack of kaizen in a business culture is the primary cause of new program failures and the downfall of many companies.

For additional information on kaizen, visit our Website at:

 http://bbasicsllc.com

Kaizen Event for Winners

2. The A,B,C's of Change

It is said that "People are creatures of habit". At first blush that certainly seems true. Each of us see people do the same things the same way day after day. We often fall into this habit as well. After all, when was the last time you drank a cup of coffee with the opposite hand? ;)

Most of us respond to certain situations the same way time after time, year after year, without even thinking about it. While tying your shoes the same way all of your life may not impact the quality of life that you enjoy, other "habits" can.

We learn how to respond to certain stimulus as we grow up. In high school we learn that if we avoid eye contact with certain people our lives go more smoothly. In college we learn study habits that often stay with us long after
graduation, whether they are practical or not. Have you ever caught yourself "cramming" for a meeting like it was a history final?

While some of these traits may be fine, in fact may be the traits we desire, not taking the time to think through how we respond to situations can lead to "we've always done it that way" thinking. And that can lead to regrets if we are not choosing our response.

We are fortunate indeed that we can be responsible. By that I don't mean only that we live with the consequences of our actions. I also mean that we are ABLE to RESPOND. In that spirit, please consider these "A,B,C's" of change.

A = AWARE

The first step is to be aware of your response. We often learn to give pat answers to situations that arise frequently. But what happens when our life situations change?

For example, it's not uncommon for a person building a new business to choose to live an unbalanced life for a short time in order to give the new enterprise a "jump start". Yet people who make this choice often become workaholics if they don't review that choice once the critical getting-started phase is over. Since work will always expand to fit the time available, they lead lives full of "I can't right now, this project is urgent" answers and miss some of life's most precious moments.

Step one is to be aware of how you respond to situations. Take time to think through if your response is appropriate to today, or a relic of a bygone time.

B = BREAK the habit

Step two is almost completely dependant on completing step one. Once you are aware of the responses you give that don't really align with where you are now, you can take action to break the old habits. The best way to do this is to choose a new response based on the particular situation you are in at the moment.

C = CHOOSE your response

Try to avoid simply exchanging an old habit with a new one. Take a moment instead to be aware of your current situation and choose your response.

Not all habits are bad. The "habit" of moving quickly in the face of an oncoming car can save your life. While this is true, it's equally true that if we let ourselves be ruled by habits we are no longer choosing in the moment.

Try this three-step approach in your life. Breaking old habits can be fun (to prove this try turning off the television for a month) and can lead to more creativity in your life as well. Remember to keep it as simple as A,B,C.

Kaizen Event for Winners

3. How to Write Technical Content for Everyday Readers

We live and work in a world of increasing complexity. As things change, the way we communicate changes too.

Yet these changes do not always apply to those who work for us. In order to be the most effective communicators possible (effective communication being defined as the reader understanding and acting on what we write) we may have to choose different language than we use among ourselves.

Sometimes you must use technical language, but need to avoid letting the reader get lost in the terms. Here's how to polish your copy for the average reader.

1. Isolate necessary technical words and bold them. Marking
   only the essential words will keep your technical message
   intact.

2. Using a word processor, check the document for
   readability and grade level. One of the best selling
   technical books of all time averages a 5th grade level but
   has readability over 80%. These are good numbers to shoot
   for.

3. Replace all non-essential technical words with the
   simplest words available. A good thesaurus is handy at this
   point.

4. Tell a story or use an analogy. Stories and examples keep
   people's interest and help them stay with you when the
   subject gets deep.

5. Don't forget that you are "selling" your point of view to
   a certain extent. If we want employees to take ownership of
   tasks, we must be responsible for communicating in a way
   they will understand. Even very technical papers usually try
   to convince the reader that the content of the paper is
   true.

Remember, you may be much more familiar with your topic than your employee, so consider the reader before you write.

Kaizen Event for Winners

4. Are You Being Heard?

How many times have you looked at the work you've assigned to an employee and been frustrated that the time they spent (and you paid for) was wasted on something you didn't want at all?

Take these simple steps to ensure that they are hearing what you are saying and not something altogether different.

1. Before you lay out a task for an employee, lay it out for yourself. Write out the steps you want them to follow in an email or a memo, being sure that each explanation of a step is clear and in language they will understand. I.e.: don't talk production line language to your accounting person.

2. Meet with them and give them a copy of the steps you have laid out. Having something in writing to refer back to as they work can save hours later. Hours it would take to correct their misunderstanding.

3. Go over the steps in the email / memo verbally, paying attention to ensure they don't appear confused.

4. Last, ask them to repeat back to you what they are supposed to do. Do this carefully and casually as a part of the conversation. Don't make them feel ignorant. Say something like, "How do you see this working? I want to be sure that we are on the same page."

Remember you can say one thing and they can hear another. Be sure you are being heard.

Kaizen Event for Winners

5. Help Employees Think Creatively

Are you tired of employees who never do more than they are told to do? Where's the creativity? Where's the desire to innovate? Here's how to help them find it.

1. Evaluate employees. Some employees are simply happy to have a job. That's okay, but you should know that.

2. Encourage employees. Those employees that showed some spark during interviews deserve a chance to become more.

3. Start small. Give these employees a small job to do all on their own. Evaluate their results and the processes they used to get those results. Does this person think in terms of using a process, or just going directly from point A to point B? Both approaches have their strengths and weaknesses, but knowing how your employee thinks will help you manage him or her better.

4. Reward openly. If the employee does a good job, even if it's not perfect, reward them openly. Let everyone know what a good job they did.

After the evaluations have been done and you have tested a few employees with small projects, it's time to move on to bigger and better things. Who knows, you may have a potential supervisor in the group.