1. Kaizen
Kaizen (改善?), Japanese for "improvement" or "change for the better", refers to
philosophy or practices that focus upon continuous improvement of processes in
manufacturing, engineering, supporting business processes, and management. It has been
applied in healthcare,[1] psychotherapy,[2] life-coaching, government, banking, and many
other industries. When used in the business sense and applied to the workplace, kaizen
refers to activities that continually improve all functions, and involves all employees
from the CEO to the assembly line workers. It also applies to processes, such as
purchasing and logistics, that cross organizational boundaries into the supply chain.[3] By
improving standardized activities and processes, kaizen aims to eliminate waste (see lean
manufacturing). Kaizen was first implemented in several Japanese businesses after the
Second World War, influenced in part by American business and quality management
teachers who visited the country. It has since spread throughout the world[4] and is now
being implemented in many other venues besides just business and productivity.
Introduction
Kaizen is a daily process, the purpose of which goes beyond simple productivity
improvement. It is also a process that, when done correctly, humanizes the workplace,
eliminates overly hard work ("muri"), and teaches people how to perform experiments on
their work using the scientific method and how to learn to spot and eliminate waste in
business processes. In all, the process suggests a humanized approach to workers and to
increasing productivity: "The idea is to nurture the company's human resources as much
as it is to praise and encourage participation in kaizen activities."[5] Successful
implementation requires "the participation of workers in the improvement."[6] People at
all levels of an organization participate in kaizen, from the CEO down to janitorial staff,
as well as external stakeholders when applicable. The format for kaizen can be
individual, suggestion system, small group, or large group. At Toyota, it is usually a local
improvement within a workstation or local area and involves a small group in improving
their own work environment and productivity. This group is often guided through the
kaizen process by a line supervisor; sometimes this is the line supervisor's key role.
Kaizen on a broad, cross-departmental scale in companies, generates total quality
management, and frees human efforts through improving productivity using machines
and computing power.[citation needed]
While kaizen (at Toyota) usually delivers small improvements, the culture of continual
aligned small improvements and standardization yields large results in the form of
compound productivity improvement. This philosophy differs from the "command and
control" improvement programs of the mid-twentieth century. Kaizen methodology
includes making changes and monitoring results, then adjusting. Large-scale pre-planning
and extensive project scheduling are replaced by smaller experiments, which can be
rapidly adapted as new improvements are suggested.[citation needed]

2. In modern usage, a focused kaizen that is designed to address a particular issue over the
course of a week is referred to as a "kaizen blitz" or "kaizen event". These are limited in
scope, and issues that arise from them are typically used in later blitzes
History
After World War II, to help restore Japan, American occupation forces brought in
American experts to help with the rebuilding of Japanese industry. The Civil
Communications Section (CCS) developed a Management Training Program that taught
statistical control methods as part of the overall material. This course was developed and
taught by Homer Sarasohn and Charles Protzman in 1949 and 1950. Sarasohn
recommended W. Edwards Deming for further training in Statistical Methods. The
Economic and Scientific Section (ESS) group was also tasked with improving Japanese
management skills and Edgar McVoy is instrumental in bringing Lowell Mellen to Japan
to properly install the Training Within Industry (TWI) programs in 1951. Prior to the
arrival of Mellen in 1951, the ESS group had a training film done to introduce the three
TWI "J" programs (Job Instruction, Job Methods and Job Relations)- the film was titled
"Improvement in 4 Steps" (Kaizen eno Yon Dankai). This is the original introduction of
"Kaizen" to Japan. For the pioneering, introducing, and implementing Kaizen in Japan,
the Emperor of Japan awarded the Second Order Medal of the Sacred Treasure to Dr.
Deming in 1960. Consequently, the Union of Japanese Science and Engineering (JUSE)
instituted the annual Deming Prizes for achievements in quality and dependability of
products in Japan. On October 18, 1989, JUSE awarded the Deming Prize to Florida
Power & Light Company (FPL), based in the United States, for its exceptional
accomplishments in its process and quality control management. FPL was "the first
company outside of Japan to win the Deming Prize."
Implementation
The Toyota Production System is known for kaizen, where all line personnel are expected
to stop their moving production line in case of any abnormality and, along with their
supervisor, suggest an improvement to resolve the abnormality which may initiate a
kaizen.

3. The PDCA cycles[7]
The cycle of kaizen activity can be defined as:
• Standardize an operation
• Measure the standardized operation (find cycle time and amount of in-process
inventory)
• Gauge measurements against requirements
• Innovate to meet requirements and increase productivity
• Standardize the new, improved operations
• Continue cycle ad infinitum
This is also known as the Shewhart cycle, Deming cycle, or PDCA. Other techniques
used in conjunction with PDCA include 5 whys, which is a form of root cause analysis in
which the user asks "why" to a problem and its answer five successive times. There are
normally a series of root causes stemming from one problem[8], and they can be
visualized using fishbone diagrams or tables.
Masaaki Imai made the term famous in his book Kaizen: The Key to Japan's Competitive
Success.
Apart from business applications of the method, both Anthony Robbins and Robert
Maurer, PhD[9] have popularized the kaizen principles into personal development
principles. In his book,One Small Step Can Change Your life: The Kaizen Way and his
eight CD set, The Kaizen Way to Success, Dr. Maurer looks at both personal and
professional success using the kaizen approach
The five main elements of kaizen
• Teamwork
• Personal discipline
• Improved morale
• Quality circles
• Suggestions for improvement
Kanban
Kanban (看板?), also spelled kamban and literally meaning "signboard" or "billboard", is
a concept related to lean and just-in-time (JIT) production. According to Taiichi Ohno,
the man credited with developing Just-in-time, kanban is one means through which JIT is
achieved.[1]
Kanban is not an inventory control system. Rather, it is a scheduling system that tells you
what to produce, when to produce it, and how much to produce.

4. The need to maintain a high rate of improvements led Toyota to devise the kanban
system. Kanban became an effective tool to support the running of the production system
as a whole. In addition, it proved to be an excellent way for promoting improvements
because reducing the number of kanban in circulation highlighted problem areas
Origins
The term kanban describes an embellished wooden or metal sign often representing a
trademark or seal. Kanban became an important part of the Japanese mercantile scene in
the 17th century, much like the military banners had been to the samurai. Visual puns,
calligraphy and ingenious shapes were employed to indicate a trade and class of business
or tradesman.
In the late 1940s, Toyota began studying supermarkets with a view to applying store and
shelf-stocking techniques to the factory floor, figuring, in a supermarket, customers get
what they need, at the needed time, and in the needed amount. Furthermore, the
supermarket only stocks what it believes it will sell, and customers only take what they
need because future supply is assured. This led Toyota to view a process as a customer of
preceding processes, and the preceding processes as a kind of store. The customer
process goes to this store to get needed components, and the store restocks. As in
supermarkets, originally, signboards were used to guide "shoppers" to specific restocking
locations.
"Kanban" uses the rate of demand to control the rate of production, passing demand from
the end customer up through the chain of customer-store processes. In 1953, Toyota
applied this logic in their main plant machine shop
Operation
An important determinant of the success of production scheduling based on "pushing" the
demand is the quality of the demand forecast that can receive such "push."
Kanban, by contrast, is part of an approach of receiving the "pull" from the demand.
Therefore, the supply or production is determined according to the actual demand of the
customers. In contexts where supply time is lengthy and demand is difficult to forecast,
the best one can do is to respond quickly to observed demand. This is exactly what a
kanban system can help with: It is used as a demand signal that immediately propagates
through the supply chain. This can be used to ensure that intermediate stocks held in the
supply chain are better managed, usually smaller. Where the supply response cannot be
quick enough to meet actual demand fluctuations, causing significant lost sales, then
stock building may be deemed as appropriate which can be achieved by issuing more
kanban. Taiichi Ohno states that to be effective kanban must follow strict rules of use[4]
(Toyota, for example, has six simple rules, below) and that close monitoring of these
rules is a never-ending task to ensure that the kanban does what is required.

5. [edit] Kanban cards
Kanban cards are a key component of Kanban that utilizes cards to signal the need to
move materials within a manufacturing or production facility or move materials from an
outside supplier to the production facility.
The Kanban card is, in effect, a message that signals depletion of product, parts or
inventory that when received will trigger the replenishment of that product, part or
inventory. Consumption drives demand for more. Demand for more is signaled by
Kanban card. Kanban cards thus, in effect, help to create a demand-driven system. It is
widely espoused by proponents of Lean production and manufacturing that demand-
driven systems lead to faster turnarounds in production and lower inventory levels,
helping companies implementing such systems to be more competitive.
Kanban cards, in keeping with the principles of Kanban, should simply convey the need
for more materials. A red card lying in an empty parts cart would easily convey to
whomever it would concern that more parts are needed.
In the last few years, Electronic Kanban systems, which send Kanban signals
electronically, have become more widespread. While this is leading to a reduction in the
use of Kanban cards in aggregate, it is not uncommon in modern Lean production
facilities to still find widespread usage of Kanban cards.
[edit] Toyota's six rules
• Do not send defective products to the subsequent process
• The subsequent process comes to withdraw only what is needed
• Produce only the exact quantity withdrawn by the subsequent process
• Level the production
• Kanban is a means to fine tuning
• Stabilize and rationalize the process
[edit] Three-bin system
A simple example of the kanban system implementation might be a "three-bin system"
for the supplied parts (where there is no in-house manufacturing) — one bin on the
factory floor (demand point), one bin in the factory store, and one bin at the suppliers'
store. The bins usually have a removable card that contains the product details and other
relevant information — the kanban card.
When the bin on the factory floor becomes empty, i.e., there is demand for parts, the
empty bin and kanban cards are returned to the factory store. The factory store then
replaces the bin on the factory floor with a full bin, which also contains a kanban card.
The factory store then contacts the supplier’s store and returns the now-empty bin with its
kanban card. The supplier's inbound product bin with its kanban card is then delivered
into the factory store completing the final step to the system. Thus the process will never

6. run out of product and could be described as a loop, providing the exact amount required,
with only one spare so there will never be an oversupply. This 'spare' bin allows for the
uncertainty in supply, use and transport that are inherent in the system. The secret to a
good kanban system is to calculate how many kanban cards are required for each product.
Most factories using kanban use the coloured board system (Heijunka Box). This consists
of a board created especially for holding the kanban cards.
[edit] Electronic kanban systems
Main article: Electronic kanban
Many manufacturers have implemented electronic kanban systems.[5] Electronic kanban
systems, or E-Kanban systems, help to eliminate common problems such as manual entry
errors and lost cards.[6] E-Kanban systems can be integrated into enterprise resource
planning (ERP) systems. Integrating E-Kanban systems into ERP systems allows for real-
time demand signaling across the supply chain and improved visibility. Data pulled from
E-Kanban systems can be used to optimize inventory levels by better tracking supplier
lead and replenishment times

7. Kanban
Kanban is often seen as a central element of “Lean” manufacturing and is probably the
most widely used type of “Pull” signaling system. Kanban stands for Kan- card, Ban-
signal and as you probably guessed, is of Japanese origin.
Simply described a “pull” production system controls the flow of work through a factory
by only releasing materials into production as the customer demands them i.e. only when
they are needed. A “push” system on the other hand would release material into
production as customer orders are processed and material becomes available, MRP
(Material Requirement Planning / Manufacturing Resource Planning) systems are
typically “push” systems. What must be made clear at this point is that Kanban is not a
scheduling system but rather a production control system.
The concept of Kanban cards (or other indicators) have been around for many years, in
fact the “two bin system” was used in the UK long before Japanese manufacturing
methodologies started to be come popular in the 1970’s. Whatever the origins, or who the
inventors, a Kanban system is generally easy to understand, simple to visualise and
comparatively easy to set-up. Kanban systems are commonly used within the automotive
industry where there is a stable demand and flow. Other such stable manufacturing
environments will also likely benefit from a Kanban system.
Many companies we visit would not describe themselves as having a stable demand of
any particular product, in fact the opposite is quite often the case, high product variety
and low volumes. In these circumstances a Kanban system may not be suitable for the
entire production process but there are probably sub areas where a Kanban system of one
form or another will aid production planning and material control. Ideally the work
carried out by the operations covered by the Kanban should also be as well balanced as
possible.
There are a number of different Kanban flavours or variants, this article will concentrate
on the simplest forms.
Product Kanban
Product Kanban is the most straightforward form of Kanban. It can take a number of
forms but essentially does the same job. Production or materials ordering upstream is
only carried out when a downstream operation signals it is needed i.e. a component is
used downstream and it is simply replaced. The signal may be a painted square on the
ground (when the square is empty of components then that is the signal to produce
upstream), a card (when a component is used a card is passed upstream) or even so-called
fax-ban or e-ban. Whatever the signal the effect is the same when a set number of
components are used (1 – 10,000 depending on the component) then and only then will
upstream operations receive the authority to begin production or order a specified number
of that component to fill the requirement.

8. Emergency Kanban
An emergency Kanban allows for rush jobs to be carried out. If a job is to be rushed
through production then it has to be given priority in some way or another. This can be
achieved with different coloured Kanban cards say Red. If an operator has a stack of
cards to produce to, then the red card would be carried out first allowing some orders to
be carried out more quickly.
Kanban rules
1. A Kanban signal is only issued when the component it represents is used.
2. No Kanban no part (i.e. components are only made or issued when a Kanban
exists).
3. Only good components are issued.
4. No over production
5. Components are only manufactured in the order the Kanban cards are received
(unless emergency Kanban's are in use).
6. Components are only manufactured / issued in the number specified by the
Kanban.
7. The number of Kanban cards should be reduced over time and the problems that
are encountered by doing this should be tackled as they are exposed.
Calculating the number of cards
The number of Kanbans required can be calculated as follows.
Number of Kanbans = (Demand in period x Order Cycle time x Safety stock) ÷ Batch size
(or container quantity)
Conclusion
This short article begins to explain the basic concept of a Kanban system. Kanban is a
very simple and effective production control system that can be easily introduced in
many production environments. Proper use of a “Pull” system is often seen as a large step
towards achieving true JIT (Just In Time) production.
If you have further questions about Kanban or would like help in implementing a Kanban
system in your factory then the MAS-SW can help you. Please contact our help desk
(0845 608 3838) and arrange a visit with one of our manufacturing specialists.