This document discusses Kaizen, which means "change for the better" in Japanese. It describes the four parts of Kaizen as Need, Genba (actual place), Application, and Team. It outlines the 8 steps of the PDCA (Plan-Do-Check-Act) process for continuous improvement. These include clarifying the problem, breaking it down, analyzing the root cause, developing countermeasures, seeing countermeasures through, and standardizing successful processes. Examples are provided for how Kaizen can be applied to different areas like sales, cash flow, and HR. Reasons for Kaizen failure and key Kaizen principles are also discussed.
19. Need
Part 2
70%…of Fortune 1000 companies ten years ago are no longer in
business –unable to adapt to change.
20. Poorly Planned
(Trial & Error)
D C A
Man-hour
Up front
Planning Less man-hour
More man-hour
P
Amount of time wasted!!
PDCA Benefits:
• Save time in solving complicated problems
• Minimize trial & error
32. Admissions Admin Activities Others
President
Manager
Directors
Others
Every Job Title / GradeEvery Function
P
D
C
A
P
D
C
A
P
D
C
A
P
D
C
A
P
D
C
A
P
D
C
A
P
D
C
A
P
D
C
A
P
D
C
A
P
D
C
A
37. Step 6.
See
Counter-
measures
Through
Step 7.
Monitor Both
Results and
Processes
Step 8.
Standardize
Successful
Processes
Step 4.
Root Cause
Analysis
Step 3.
Target
Setting
Step 2.
Break Down
the Problem
Step 1.
Clarify the
Problem
ActCheckDoPlan
Step 5.
Develop
Counter-
measures and
Process KPI
KAIZEN PDCA 8 STEPS
38. HOW CAN KAIZEN BE APPLIED TO SALES?
Step 6.
1 month trial
of paper
version
Step 7.
Lost sales
reduced to 2%
from 10% in 3
mths
Step 8.
SOP
adapted &
implemented
3 months
later
Step 5.
FIFO method
unless cash
customer, no
special
privilege
Step 4.
No way of
prioritizing
insurance
applications
Step 3.
1% lost
sales
Step 2.
Problem lain
in the link
between
sales &
insurance
Step 1.
Customers
were
cancelling
orders up to
$1mil/yr
ActCheckDoPlan
39. HOW CAN KAIZEN BE APPLIED TO CASH
FLOW?
Step 6.
60 day
temporary
action plan
to backlog +
new SOP for
handover
Step 7.
80% of Past
Dues procured
within 30 days
& only 1 past
due for 60
days
Step 8.
SOP
adapted &
implemented
2 months
later
Step 5.
Develop
communicat
ion strategy
for post-
fulfillment
Step 4.
50% of
invoices had
mistakes
Step 3.
Procure
$46K & 0
past dues
Step 2.
Problem lain
in
communicati
on w/
customers
Step 1.
Tech
fulfillment
services past
dues totaled
$46K
ActCheckDoPlan
40. HOW CAN KAIZEN BE APPLIED TO HR?
Step 6.
Discuss with
individual
staff and
incorporate
into hiring
process
Step 7.
New staff
retained over 6
mth period
Step 8.
Reevaluate
quarterly to
collect 3
year data,
indefinitely
Step 5.
Revisit benefit
options and
performance
review process
Step 4.
Poor
communica
tion of
benefits to
new
employees
Step 3.
Average 2
years
serving by
millenials
Step 2.
Problem lain
in the
coaching
process of
managers
Step 1.
Low retention
ratio
ActCheckDoPlan
41. Step 6.
See
Counter-
measures
Through
Step 7.
Monitor Both
Results and
Processes
Step 8.
Standardize
Successful
Processes
Step 4.
Root Cause
Analysis
Step 3.
Target
Setting
Step 2.
Break Down
the Problem
Step 1.
Clarify the
Problem
ActCheckDoPlan
Step 5.
Develop
Counter-
measures and
Process KPI
KAIZEN PDCA 8 STEPS
42. 8 STEPS
Step 2.
Break Down the Problem
Step 1.
Clarify the Problem
Step 3.
Target Setting
Step 4.
Root Cause Analysis
PROCESSES
1. Make the commitment
2. Set measurable, concrete, and challenging targets
1. Clarify the Ultimate Goal of your responsibilities & work
2. Clarify the Ideal Situation and Current Situation of your work
3. Visualize the gap between the Current Situation and the Ideal Situation
1. Break down the problem
2. Identify the Prioritized Problem
3. Specify the Point of Occurrence by checking the process through
GENCHI GENBUTSU
1. Examine the Point of Occurrence and think of possible causes without any
prejudice
2. Gather facts through GENCHI GENBUTSU and keep asking
“Why?”
3. Specify the root cause
1. Develop as many potential countermeasures as possible
2. Select the highest value-added countermeasures
3. Build consensus with others
4. Create a clear and concrete action-plan
Step 5.
Develop
Countermeasures
PlanPlan, Step 1: Clarify the Problem
44. 8 STEPS
Step 2.
Break Down the Problem
Step 1.
Clarify the Problem
Step 3.
Target Setting
Step 4.
Root Cause Analysis
PROCESSES
1. Make the commitment
2. Set measurable, concrete, and challenging targets
1. Clarify the Ultimate Goal of your responsibilities & work
2. Clarify the Ideal Situation and Current Situation of your work
3. Visualize the gap between the Current Situation and the Ideal Situation
1. Break down the problem
2. Identify the Prioritized Problem
3. Specify the Point of Occurrence by checking the process through
GENCHI GENBUTSU
1. Examine the Point of Occurrence and think of possible causes without any
prejudice
2. Gather facts through GENCHI GENBUTSU and keep asking
“Why?”
3. Specify the root cause
1. Develop as many potential countermeasures as possible
2. Select the highest value-added countermeasures
3. Build consensus with others
4. Create a clear and concrete action-plan
Step 5.
Develop
Countermeasures
PlanPlan, Step 1: Clarify the Problem
46. KAIZEN PDCA
8 STEPS OVERVIEW
Step 6.
See
Counter-
measures
Through
Step 7.
Monitor Both
Results and
Processes
Step 8.
Standardize
Successful
Processes
Step 5.
Develop
Counter-
measures and
Process KPI
Step 4.
Root Cause
Analysis
Step 3.
Target
Setting
Step 2.
Break Down
the Problem
Step 1.
Clarify the
Problem
ActCheckDoPlan
47. “No one has more trouble
than the person who claims to have no trouble.”
(Having no problems is the biggest problem of all.)
Taiichi Ohno
52. 8 STEPS
Step 2.
Break Down the Problem
Step 1.
Clarify the Problem
Step 3.
Target Setting
Step 4.
Root Cause Analysis
PROCESSES
1. Make the commitment
2. Set measurable, concrete, and challenging targets
1. Clarify the Ultimate Goal of your responsibilities & work
2. Clarify the Ideal Situation and Current Situation of your work
3. Visualize the gap between the Current Situation and the Ideal Situation
1. Break down the problem
2. Identify the Prioritized Problem
3. Specify the Point of Occurrence by checking the process through
GENCHI GENBUTSU
1. Examine the Point of Occurrence and think of possible causes without any
prejudice
2. Gather facts through GENCHI GENBUTSU and keep asking
“Why?”
3. Specify the root cause
1. Develop as many potential countermeasures as possible
2. Select the highest value-added countermeasures
3. Build consensus with others
4. Create a clear and concrete action-plan
Step 5.
Develop
Countermeasures
PlanPlan, Step 1: Clarify the Problem
53. 8 STEPS
PROCESSES
1.With united efforts, implement countermeasures with speed and
persistence
2.Share information with others by informing, reporting and
consulting
3.Never give up. If you cannot achieve the expected results, try other
measures
1.Evaluate the results and the processes and share it with members
involved
2.Evaluate from three key perspectives: Customer’s, Toyota’s, and
Your Own
3. Understand the reasons of success and failure
1. Set successful processes as new standards
2. Share the new standard (YOKOTEN)
3. Start the next round of KAIZEN
Step 8.
Standardize Successful
Processes
Step 6.
See
Countermeasures
Through
Step 7.
Monitor Both
Results and Processes
Step 6 – 8 See Countermeasures
Through
Notes de l'éditeur
This is a full time job. There is no way around it.
Just so you know, my book is not your typically business book. It’s been reviewed as “an Auto bio of a business” because the storytelling exposes lessons of kaizen that can be applied to your business”
As we commence today, take note of the hashtag and my handle on all your fav social pages. Post pics, poignant quotes and more with these.
Kaizen What tool does your business use for problem solving
Need Why is there a need for it
Application Where can it be appliedTeam Who can do it
A problem solving concept born out of the manufacturing side of the business and is one of two pillars of the Toyota Way.
Not just to reduce waste and cut costs
A problem solving concept born out of the manufacturing side of the business and is one of two pillars of the Toyota Way.
Not just to reduce waste and cut costs
Over barely two decades, Toyota thought, why can’t we apply this to sales?
Our office was based in Singapore and led kaizen projects throughout the South Pacific in pilot dealerships across 14 Asian countries. Every project lasted on avg 1.5 years. If they worked, we standardized them among the country, then to other countries, spanning a dealer network of several hundred
Which is where my team came in. As SEO of Toyota Motor Asia Pacific, my role was to manage teams across three levels of organizations: headquarters, the distributor, and the dealership team to facilitate these pilot dealerships. The term we use in Japan is Pika Pika, for shining dealer/best practice.
Our success was measured by, does the team continue the project once we are gone?
Lean often is confused as “Cut waste”
Not all dealerships were equal. Depending on the maturity level of your business, kaizen can be used for many things. Toyota dealerships were across the board, some doing very advanced like business model revenue generating kaizen, and some basic, like wait time for entry into the sales floor.
In the Philippines, I ran a lost sales reduction and on time delivery project,
In Malaysia, we improve the service efficiency ratio and reduction in parts depreciation
In Malaysia, we improve the service efficiency ratio and reduction in parts depreciation
And in India, helped improved sales efficiency and closing rates for the first small car for Toyota in India.
Your business can use kaizen as….
How many times, have you looked at your business and said, “I think…” I’m in the red, should fire someone, etc.
Or people in tour company come to you constantly with assumption, invoicing is making mistakes or fulfillment is messing up the product on delievery.
We all know uncertainty and change is inevitable
Among such threats as:
Automation / cloud computing
Tech / AI
And global competition
How many times, have you looked at your business and said, “I think…” I’m in the red, should fire someone, etc.
Or people in tour company come to you constantly with assumption, invoicing is making mistakes or fulfillment is messing up the product on delievery.
Save time in solving complicated problems! Minimize Trial & Error!
Kaizen is the know, not “I think”.
Kaizen is changing constantly to minimizes uncertainty thru empirical data, to support sustainability and long term growth.
Toyota success comes from this focus on empowering team members to improve and support continuous improvement.
Your business needs kaizen because… it empowers ownership in your team to helps minimalizes peaks and valleys from the waves of growth
How does kaizen accomplish this thru a macro scale
The front line staff. Kaizen is a bottom up approach to improving operations.
Genba in Japanese refers to the people who deal directly with the customer. The belief is leadership of the company can’t know the best solutions while sitting in the office and that Genba knows because they represent the customer voice.
CFL cycle, this is how Toyota sustains while the waves of business crash. They believe that if they can empower frontline staff to constantly improve every process in this life cycle, that they will always remain competitive and in business.
What is your business’s life cycle? Do you even know?
Take some notes and draw in 2 mins what you think your business cycle loosk like? Share with the person next to you and give input on what they may be missing.
As the waves of growth happen, do you want to be on this ship?
or this one?
Kaizen is the one way to consistently look at every aspect of your business and minimize uncertainty empirically every time.
Now….How many people here look at data once/wee? How many people still feel like they have peaks valleys?
Now lets talk about the difference of that data versus what you want to be doing? Why is it that they are not improving?
Here’s the secret: the whole business
Toyota has a means of capturing customers ideas every year. Can you guess how many ideas they get from employees? Over 1,00o,ooo
This helps everyone feel like they are a part of something bigger
First thing to know is everyone is going to think they are losing their job
32
Here’s the secret: the whole business
Toyota has a means of capturing customers ideas every year. Can you guess how many ideas they get from employees? Over 1,00o,ooo
This helps everyone feel like they are a part of something bigger
First thing to know is everyone is going to think they are losing their job
The whole team does kaizen….
Easy to implement/change and small payoff
37
Reduced lost sales by 8 %
“You may be wondering if I still work for Toyota bc I sometimes say we but really they just brainwashed us” I now help small to med sized businesses growing in sales help outline their processes and streamline back of the house operations to scale. My passion is with non profits.
Procured over $30K in past due invoices and minimized past due accounts for only 6 customers/year.
And increased retention ratio of those that full under millennial age bracket.
In my time at Toyota, this PDCA process helped dealerships save a combined value of over $5 million, and let’s just be honest, they didn’t pay me that much. And I have done much more since for other companies.
So where can kaizen be applied at genba?
Other notes:
Address millenials and how companies are changing perks and benefit programs to address changing employees.
Hiring - It retains and empowers employees (back with research)
Former: don’t have clear objective, what it’s expected of them, leave.
Or, that furthers
Kaizen and ops dev helps minimize the peaks and valleys of HR
41
42
Now how do we know it’s a problem. What is the ideal vs current? This is gap.
Raise your hand if what you want to improve can be measured. You have to have a way to measure the process first before you can start to improve.
44
The front line staff. Kaizen is a bottom up approach to improving operations.
Genba in Japanese refers to the people who deal directly with the customer. The belief is leadership of the company can’t know the best solutions while sitting in the office and that Genba knows because they represent the customer voice.
46
Remember, how we measure success is if people sustaining the projects on their own.
How to make them feel a part of the bigger business, the whole.
We were a full time time.
1) You are reacting to urgent snowballed problems rather than having a preventative mindset.
2) You don’t have the time, PIC, or org structure to support it
3) You don’t have the tools/know-how to execute it
In the 7 years, since my team began the project in Manila, the annual revenue went up 400%, that’s a difference of selling 500 cars/year from 120. This dealership claims 40% year over year
But they stick with it after fighting me for over 18 months of barely getting results.
Which is why the ultimate measure of success was can they do Kaizen on their own. And in leadership, we teach people how to fish. We all know changing mindset is hard, but who knew ops could affect culture?