Kaizen mean

Definition and Concept

“KAI”= Change
“ZEN”= Good
Therefore, “KAIZEN”= Good Change
Or

KAIZEN means “continuous improvement” or "continual improvement"
involving
EVERYBODY
in the organization from the managers down to the workers (or every level of employee)
Kaizen Further Defined

• Kaizen is an improvement suggestion to remove or rectify an abnormality in process, product and inputs.
• Kaizen in broader terms means continuing improvement in personal life, home life, social life and working life. When applied to the workplace, kaizen means continuing improvement involving everyone- managers and workers (employees) alike.
• Yet this emphasis on kaizen does not mean that innovation can or should be forgotten.
• Both , innovation and kaizen are needed if the company is to survive and grow.
• Kaizen usually results in small improvements on day-to-day basis. Yet, because it is done continuously, ultimately gives large compounded improvements.

History

• Kaizen is a part of the quality revolution initiatives that started in Japan is 1950s.
• The famous Toyota production system is known for kaizen.

Kaizen Versus Innovation
There are two contrasting approaches to improving quality and productivity.

• The gradual approach- kaizen
• The great leap approach- innovation
• Innovation is dramatic, a real attention-getter.
• Kaizen, on the other hand, is often undramatic and subtle, and its results are seldom immediately visible.
• Kaizen is a continuous process.
• Innovation is generally a one-shot phenomenon.

In any organization, we need both- kaizen and innovation. Yet, kaizen is imperative.
Innovations/Breakthroughs and Daily Continuous Improvements Through Kaizen

• Innovations/breakthroughs are brought about in any organization occasionally or intermittently. There is a high jump in improvements. These high jump improvements are incorporated in the new practices/systems/processes.
• Then, after one innovation/breakthrough, there may be a lull. During this lull period and in absence of daily management or continuous improvements through kaizen or gemba kaizen etc, these dramatically improved processes start degrading or deteriorating. And the processes become inefficient/ineffective. Lots of advantages of innovation disappear or are lost.
• This is where daily management through continuous improvements comes in. It insists on daily performance and also, daily improvements. It keeps on maintaining and further improving the processes. The fall or degradation of processes is now just not possible.
• Therefore, daily management and daily improvements through kaizen, gemba kaizen, quality circles etc is in fact a management imperative. You cannot do without it (you may occasionally do without an innovation/breakthrough).
• It may not be as stunning or exciting as an innovation, yet, effective daily management and daily improvements are the foundation on which maximization of advantages due to innovation and company viability firmly stay.

Kaizen System in Practice (The Format)
Kaizen or improvement suggestions can be given by an individual, by a small or large group or can be institutionalized as a Kaizen suggestion system.

• It is continuous improvement in all aspects of life.
• It has total employee involvement (TEI) at its base.
• Suggestions are given to supervisor/manager and not dropped in a suggestion box (as in conventional suggestion scheme).
• Kaizen emphasizes on implementation.
• Every employee takes part and gives suggestions.
• Kaizen suggestions are evaluated quickly.
• Suggestions can be departmental as well as inter-departmental.
• Kaizen improves the dignity of the employees.

Kaizen Tools

1. Seven QC tools (old ones- conventional and more popular)
2. Seven QC tools (new ones)
3. 5 W & 1 H :
   What is wrong?
   Where is the problem?
   Who does the job?
   When does it happen?
   Why does it happen?
   How can it be improved?
4. Scare :
   Simplify
   Combine
   Add
   Re-arrange
   Eliminate
5. Value added/non-value added analysis :
   Draw a flow process chart
   Identify whether each activity adds value
   Analyse causes of non-value added activities
   Eliminate non-value added activities
   Evolve a new method of working
6. PDCA Cycle :
   Plan- Do- Check- Act
7. Why why or 5 Why Analysis: Ask ‘Why’ 5 times unless you get a problem area at the root level and it's solution(s)

5S Housekeeping

5S Housekeeping Is Fundamental

(For 5S Housekeeping at homes, refer: (Housekeeping at Home)

• 5S Housekeeping is fundamental for enhancing the value for the customer
• 5S Housekeeping is the foundation for all the organizational systems/processes
  which, in turn, enhance value to customers

5S Housekeeping: A Glance

• Since early 80’s in Japan
• Pioneer- Toyota, Japan
• Systematic approach to good housekeeping
• People oriented approach: every individual can contribute to improve his workplace
• Practice oriented approach: cleaner, better, effective and safer workplace
• 5S stands for the five good housekeeping principles

Vision

• To keep both one’s external and internal house in order, develop a sensitivity for one’s surroundings and a concern for the environment at large
• A systematic and rational approach to workplace organization and methodical housekeeping with a sense of purpose

Advantages

• Workplace becomes cleaner and better organized.
• Shop floor and office operations become easier and safer.
• Results are visible to everyone- insiders and outsiders. Problems detected fast.
• Visibility gives rise to further improvements. Increased number of suggestions.
• People are disciplined.
• It instills pride among people.
• Happier employees with high morale and greater employee involvement.
• Better use of floor space.
• Less work in progress and inventories. Less time in material handling.
• Retrieval time minimized. Better flow of work. More time for improvement activities.
• Low machine breakdown rate. Low down time. Better preventive maintenance.
• Low accident rate.
• High yield of materials.
• High and consistent product quality. Low overall cost.
• Company image enhances and generates more business.

Steps to Implement the 5 Elements of 5S
Seiri
•Classification- sort out
•Elimination- remove unnecessary items as appropriate
•Storage- frequent use/rare use items
- close location/distant location
- identification of items
•Fix responsibilities and share responsibilities
•Monitor progress
Rough Criteria for Seiri
•Not used for a year- Check and throw
•Used only once in last 6 to 12 months- Store at a distance
•Used only once in last 1 to 6 months- Store at a central place in the work area
•Used weekly/hourly/daily- Store near work site
Seiri: Obstacles
•Seiri is not as easy to practice as it seems
•It is wasteful to throw things away
•We might possibly use them later
•It was so much trouble for me to make these things
•I know it is not used but it is in good condition, let it be there
•I want every thing here. I may use these any time, I can’t tell when. So don’t remove any thing
•If you think it is “such a waste to throw it away”, we can’t get started
Seiton

Ensure rational layout of machines, equipment, cabinets
•Place frequently used items at the point of use
•Prefix a place for every thing and put every thing in place
•Use labels, color codes to identify
•Use index for files, records and drawings
•Plan storage with easy irretrievability
•Mixed up items in cabinets should be organized
•Make cabinets, shelves, racks self explanatory through identification aids
•Have visual controls for checking missing items
Seiso
•Develop standards of cleaning
•Clean up work place, machines and tools after use
•Clean up supply line (no leakage, blockage, clogging with oil/dirt
•Assign responsibilities and schedules for cleaning
•Clean waste bins at end of shift/day
•Clean light bulbs, fans, shades, reflectors
•Pay special attention to scrap yard, gardens, godowns
•Scrap and chips from machines could fall directly in to collecting bins
Seiketsu
•Identify 5 S areas
•Develop standards/evaluation criteria with workmen (SOP’s and housekeeping standards)
•Establish checking procedure 5W + 1H
•Establish feedback procedure 5W + 1H
•Wear neat and clean uniform
•Wear protective clothing
•Provide adequate lighting, ventilation, exhaust
•Check electrical wiring, cables, switches
•Maintain sanitary/hygienic conditions in wash rooms, locker rooms, canteen and kitchen
•Earmark smoking and eating areas
•Look for heavy noise, vibrations and heat in machines, analyze for root cause and take action
•Create visual control systems
•Devise ways to expose hidden problems
•Create standards
Shitsuke
•Create awareness of first 4 S’s
•Develop action details for maintaining standards
•Make them easily understandable
•Give specific directions
•Display correct work procedure on the floor
•Correct deviations on the spot
•Maintain punctuality
•Conduct audits
•Demonstrate sincerity in following rules
•Share success to enthuse others
Consequences of Not Practicing 5S
Seiri
•The unwanted clutters up the place and the wanted is hard to find
•More time spent for searching things
•More space required
•We can’t bring in new things in the same place
•Causes mis-identification and rejected parts are moved to work station
Seiton
•Things are seldom available when needed. More time spent for locating misplaced things
•Defective and good items/similar looking items get mixed up
•Items are lost
•Prone to accidents
•Loss of production
•Excess inventory
•Pressure for more space
Seiso
•Dust and dirt will affect the machine performance
•Cleaning reveals hidden problems which may get overlooked otherwise
•Dust and dirt affect performance and aesthetic quality
•Unpleasant work place
Five Levels of 5 S Housekeeping
•Housekeeping of one’s inner self
•Following the 5 S principles and reducing waste
•Extending the 5 S concept to include ergonomics
•Extending the 5 S concept to include aesthetics
•Maintaining records and educating others
Stages of 5S Housekeeping
Stage 1: Floor is full of unwanted material
Stage 2: Clutter found by the walls
Stage 3: Factory/office is clean but tools, papers, files and materials dis-organized
Stage 4: Storage area/offices are clean and furniture, documents, material organized
Stage 5: Factory/office is immaculate
Critical Factors/Steps in Implementing 5S

• Top /Senior Management commitment
• Leadership by location heads
• Awareness training programs for all employees
• Launching of 5S program
• Allocation of funds
• Identification on 5S areas
• Team formation involving employees
• Developing standards
• Developing checklists
• Guidance, training, sorting out problems
• Developing audit check lists
• Publishing audit results
• Reviewing audit findings, follow up corrective actions
• Holding competitions- awards

Implementation Methodology

• All employees to undergo 5 S Housekeeping training
• A vision statement to be evolved and started with all employees
• Divide the organization into convenient zones
• Divide each zone in to convenient sub-zones
• Decide on date(s) for launching 5 S in each zone, sub-zone
• Take pledge (refer the section titled "5S Pledge" for couple of formats of the pledge as examples. they can be customized to your requirements)
• Apply 5 S principles step by step
• Form audit teams
• Carry out audits

5S Pledge
Examples of Pledge Formats:
Example 1: It shall be my (our) constant effort to maintain my workplace in an excellent order by sorting out unwanted material periodically and discarding them, assigning a place for everything and keeping everything in its place and keeping my workplace neat and clean all the time everyday.
Example 2: It shall be my (our) endeavour to delight our customers (or internal and external customers) by adhering to the standards of putting things in order and maintaining cleanliness at our workplace.
Criteria for Good Housekeeping Award

• Space occupied
• Ease of retrieval
• Ingenious storing methods
• Waste elimination
• Aesthetics

5 S Audit

• Form an audit team for each zone consisting of 4-5 members. The members should belong to that zone. One member may belong to another zone so as to maintain impartiality.
• Auditing should be carried out once a month or once in two months based on a carefully prepared check list.

An Example of Auditor’s Check List
•Documents maintained as per retention plan : 10 points
•Other items at assigned places : 10 points
•Innovative methods of storage/visual display system: 5 points
•Cleanliness/hygiene : 5 points
•Space released : 5 points
•Reporting of waste reduction : 5 points
•Aesthetic aspect : 10 points
•Safety aspect : 15 points
•Auditee’s personal appearance : 5 points
•Layout : 5 points
•Lighting level : 5 points
•Noise level : 5 points
•Temperature/humidity : 5 points
•General ergonomics : 10 points

Change Management ....

Only Thing That is Constant is “Change”

Changes take place in:

• Economy
• Markets
• Customers
• Competition
• Technology
• Product life cycle
• Product design, diversity and complexity
• Capital intensiveness
• Supply chain
• Channels of distribution
• Quality requirements

etc.
Managing Change: Definitions

• Proactive and anticipative change management: This refers to the making of changes in a planned or systematic fashion. It involves effectively implementing new initiatives, systems and methods in an ongoing organization. The changes to be managed lie within and are controlled by the organization.
• Reactive change management: The internal changes in the organization are triggered by events originating outside the organization, by the environment. It is response to the changes over which the organization has little or no control (e.g. legislation, social and political upheaval, competitors' actions, shifting economic tides and currents and so on).
• In both, proactive and reactive change management, organizations use the models, methods and techniques, tools, skills, and other forms of knowledge.

What, Why and How of Change Management

Change management or managing change has to have answers to three basic questions:

• What change(s) are needed,
• Why do we need that/those change(s) and
• How to implement the change(s).

Stages of Change Management

Management of conceptualizing, planning and implementation of change(s) has three basic stages:

1. Unfreezing
2. Changing
3. Refreezing

The elements involved in these three stages are: plans, strategies, structures, systems, methods, people and mindsets, techniques and tools etc.

Competencies/Skills Required for Managing Changes

• Business skills
• Commercial skills
• Political skills
• People skills
• System skills
• Analytical skills
• Project management skills

Change Process

• Create or establish need of change
• The need of change must exceed its resistance
• Shape a vision
• Mobilize commitment
• Make change that lasts
• Monitor Progress
• Review, control and correct

Links for Investor Relations

• Market for Alternative Investment (MAI) / The Stock Exchange of Thailand  http://www.set.or.th  

• Securities and Exchange Commission  http://www.sec.or.th

• The Stock Exchange of Thailand  http://www.set.or.th 

• The Thailand Securities Depository Co., Ltd.  http://www.tsd.co.th

• Investor Club Association  http://www.ic.or.th 

• Money Channel (News)  http://www.moneychannel.co.th 

• Thai Investors Association  http://www.thaiinvestors.com 

• Set Community Portal (SCP)  http://www.setportal.set.or.th

• Thai Listed Companies Association  http://www.thailca.com

• Thai Company Secretary Club  http://www.thaicsclub.com

• Foreign Exchange Rate (Bangkok Bank)  http://www.bangkokbank.com 

• Gold Traders Association  http://www.goldtraders.or.th

• Metal Prices & News on the Internet  http://www.metalprices.com

Corruption and history of the Thai ID cards

Here's an interesting article from today's The Nation which covers the current corruption in developing a new Thai ID card and it's history.

After eight years of delay and the outlay of billions of baht, the "Smart Card" project to provide all Thais with a modern ID card has become bogged down in a corruption-plagued scandal.
The project was started by the Thaksin Shinawatra government in 2004, but no investigation has ever been ordered into why Bt7.91 billion was approved for 64 million identity cards for all Thais, which were wracked with problems and divided into three lots over the past five to six years.

Only the first 12 million cards were issued completely in the first lot in 2004, after Bt888 million out of a total Bt1.67 billion was approved. These cards cost Bt74 apiece after two other bid lots were abolished following allegations of corruption.

No details are immediately available as to where the remaining half of this initial government outlay has gone.

Of a total of 26 million cards sought in the second lot at a bidding price of Bt962 million, half were awarded to IRC HST Joint Venture for Bt486.8 million, or Bt37.45 apiece. However, a complaint was lodged with the ICT Ministry, which later aborted the bid, and reopened it in 2007.

The 2007 auction sought a full 26 million cards, and ended in a Bt920-million deal awarded to VSK Joint Venture in July that year, which priced the cards at Bt35 apiece.

Of these Thai ID cards, I know the last 3 versions, not including the smart card

Bidding for a third lot - 26 million cards -was opened in June 2009. VK Joint Venture won the Bt902-million contract, which required new conditions set up by the Department of Provincial Administration (DOPA). These included new designs and harder-to-crack anti-forgery features.

The third-lot cards, called IE model, were embedded with IC Chip NXP (Model P5CD080), which offers 80kb of memory. That was greater than that issued in first and second lots. This version also featured a Card Operating System - Model JCOP V 2.4.1, which complied with Global Platform version 2.1.1 requirements.

Five days after Cabinet approved the deal, on December 11 last year, then DOPA director-general Wongsak Sawasdiphanich received an Interior Ministry document asking DOPA to reconsider the contract it had just awarded.

Wongsak set up two panels to study the ministry directive. They concluded that the project should proceed further with the IE model - or for the current "partly-smart" version to be dusted off. But the vote by both panels to use a "non-smart" version was not unanimous.

On March 9 this year, the ICT ministry questioned the DOPA decision and asked for it to re-approve the IE model.

DOPA later backtracked and approved the IE model. But all agencies never explained their decisions or the reasons for their about-turns.

The inaction of all agencies involved over the issue means that anyone applying for ID cards is given a "yellow paper" permit as a temporary substitute for actual cards, like in the old days when the normal procedure for issuing an ID card took 15 days.

People seeking to obtain ID cards are not even issued the third-generation "non-smart" cards, because district officers are not sure what cards they should issue if people apply for a new card or seek to renew one that has expired.

After DOPA approved the IE model, the ICT Ministry handed 600,000 cards to the department. But days after receiving the first million cards from the ministry, DOPA rejected them all on June 14. It said the IE model violated two conditions - the front of the cards has red microtext laid across it, and the back of the card does not feature the map of Thailand.

This type of technical problem occurred previously when DOPA rejected the first six million cards many years ago - because they could not be used by the department's computer. The problem ended when Thaksin ordered DOPA to accept all cards.

It remains to be seen how the problem will be tackled this time. It may eventually be dealt with by Prime Minister Abhisit Vejjajiva, who needs to resolve problems between the Interior Ministry and the ICT Ministry.

Thailand may be hit by devastative storm: Suwit

Thailand may be hit by devastative storm: Suwit