Office Kaizen by Operational Excellence Consulting

© Operational Excellence Consulting. All rights reserved.
Office
Kaizen
Improving Office Productivity

© Operational Excellence Consulting. All rights reserved. 2
Learning Objectives
• Understand the principles and key concepts of kaizen
• Identify value and waste in office processes
• Apply 5S principles, visual management tools and
standards to improve office organization and efficiency
• Acquire knowledge on the supporting Lean tools for
kaizen activities
• Understand the role of management in kaizen
implementation
• Define the critical success factors in developing and
sustaining a kaizen culture

Outline
1. Introduction and key concepts of kaizen
2. Understanding value and waste
3. 5S principles for effective workplace organization
4. Visual office
5. Standardization
6. Supporting Lean tools for kaizen activities
7. Role of management
8. Ways to develop “kaizen eyes”
9. Critical success factors
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NOTE: This is a PARTIAL PREVIEW. To
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What is Kaizen?
• The Japanese word “Kaizen” (改善) means
change (KAI) to become good (ZEN).
改善
Change Good
Kai Zen

What is Kaizen?
• Kaizen means improvement. Improvements
without spending much money, involving
everyone from managers to employees, and
using much common sense.
• The aspect of Kaizen is that it is on-going and
never-ending improvement process.
• Kaizen can be applied in all industries,
including office and service environments.

"Continuous effort
- not strength or
intelligence - is the
key to unlocking
our potential."
- Sir Winston Churchill

Kaizen versus Problem Solving
• Problem solving
 Centers on the fundamental notion of “gap” or
“deviation” from standard (e.g. cost, quality, delivery)
• Kaizen
 Focuses on achieving a new standard or level of
performance
Standard – what should
be happening
Current situation – what
is actually happening
Gap = Problem

Kaizen & Lean
Stability
Heijunka Standardized Work Kaizen
Just-In-Time
• Continuous flow
• Takt time
• Pull system
• Flexible workforce
Jidoka
• Separate man &
machine work
• Abnormality
Identification
• Poka yoke
• Visual Control
Goals:
highest quality,
lowest cost, shortest lead times
Involvement
Kaizen is the
foundation for
all Lean
improvements

Kaizen versus Innovation
Kaizen Innovation
Un-dramatic Dramatic
Low Cost High Cost
Low Risk High Risk
Human Effort Technology
No Brainer More Thought

Kaizen is a Continuous Process
Standardize
Standardize
StandardizeKaizen
Kaizen
Kaizen
P
DC
A
Kaizen (改善) =
Continuous Improvement
Plan
DoCheck
Act

Kaizen Philosophy
Implement good housekeeping and workplace organization.
Identify and eliminate all activities that are waste.
Implement standardization.
Current
State
Future
State
Solve
Problems
Expose
Problems “True North”
Value Added Time = Lead Time
Full of Waste,
Variation, and
Constraints

Key Kaizen Approaches
Good Housekeeping (“5S”)
Waste Elimination
Standardization
Kaizen

Key Kaizen Concepts
Kaizen &
Management
Follow
SDCA / PDCA
Cycles
Speak with
Data
Next
Process Is
Customer
Quality
First
Process
vs
Results

Benefits of Kaizen
• Empowers employees, enriches the work
experience and brings out the best in every
person
• Promotes personal growth of employees and the
company
• Improves quality, safety, cost structures,
delivery, environments, throughput and
customer service/satisfaction
• Provides guidance from employees, and serves
as a barometer for leadership

How to Implement Office Kaizen?
• Office kaizen can be implemented in the
following ways:
1. Waste elimination
2. 5S good housekeeping and workplace organization
3. Visual Office
4. Standardization

Cost Reduction Principle
Cost Plus Principle
COST 1
SALES
PRICE
1
PROFIT
1
Present
COST 2
PROFIT
2
Future
SALES
PRICE
2
Cost Reduction Principle
COST 1
SALES
PRICE
1
PROFIT
1
Present
COST 2
PROFIT
2
Future
SALES
PRICE
2
Higher profit is
achieved by
increasing sales price
Higher profit is
achieved by reducing
cost (waste) while
maintaining sales price

The Eight Types of Waste
Overproduction
Producing more than what
the customer needs
Inventory
Building and storing extra
products the customer has
not ordered
Transportation
Moving from one
place to another
Defects
Reprocessing, scrap or
correcting work
Over-processing
Adding excess value
when the customer does
not require it
Motion
Extra physical/mental
motion that doesn’t add
value
Intellect
Not using employees full
intellectual contribution
Waiting
Employees waiting for
parts, machine, process or
information
Waste

Congestion and Clutter Reduce Office
Efficiency

5S principles
• 5S is a structured
program to implement
workplace organization
and standardization
• 5S represents five
disciplines for maintaining
a visual workplace
• 5S is a foundation for
Kaizen and Lean
implementation
Sort
Set In OrderShine
Standardize
Sustain

What is 5S?
Principles General Description
1S Sort
Remove what is not needed and keep
what is needed
2S Set in Order
Arrange essential items in order for easy
access
3S Shine
Keep things clean and tidy; no trash or
dirt in the workplace
4S Standardize
Establish standards and guidelines to
maintain a clean workplace
5S Sustain
Make 5S a habit and teach others to
adhere to established standards

Office Desk – Before & After 5S
An office desk before and after conducting 5S Sort and Set In
Order. Clutter and unused items have been removed leaving
only what is needed.
Before After

2S : Set In Order - Examples
5S on desk top drawer
Cabinet filing with labels
Files are color-coded and
neatly arranged on desk
Organized book shelves

Which is cleaner – Your keyboard or
the toilet seat?
A 2004 study by Dr. Charles
Gerba of the Univeristy of
Arizona found keyboards
have on average 3,295
germs per square inch
versus a toilet seat which
has 49 germs per square
inch. Gerba say, “Desks are
really bacteria cafeterias.”
Clean your keyboard. Researchers recommend that you should
give your keyboard a good “spring cleaning” by dusting off
crumbs and cleaning with an appropriate disinfectant.

5S Implementation Roadmap 1
Phase 1: Prepare the
Project
1. Get management
involvement
2. Identify target areas
3. Form an implementation
team
Phase 2: Perform an
Office Scan
4. Select project measures
and collect baseline data
5. Photograph current
conditions
6. Apply the office scan
checklist
7. Post a project
storyboard
Phase 3: Sort
Through & Sort Out
8. Determine criteria for
sort
9. Prepare a holding area
10. Apply Sort
Phase 4: Set Things
in Order & Set Limits
11. Map the current state
12. Create a Set-In-Order
plan
13. Apply Set-In-Order
• Define 5S zones
• Assign responsibilities
• Develop publicity
materials
• Educate everyone
• Purchase cleaning
equipment as needed
• Red tagging• Set up 5S activity
board
• Define 5S project
charter

5S Audit & Results5S Workplace Scan Checklist
Department: Place an "x" in the appropriate box based on number of issues observed.
Date: Scored By: Number of Observations >> 0 1-2 3-4 5-6 >6
Sort
Distinguish between what is needed and not needed
1
Unneeded equipment, tools, furniture, etc. are
present
X
2 Unneeded items are on walls, notice boards, etc X
3 Items are present in walkways, stairways, corners, fire exits etc. X
4 Unneeded inventory, supplies, parts, or materials are present X
5
Safety hazards (water, oil, chemical, machines)
exist
X
Subtotal >> 0 1 4 6 0
SetinOrder
A place for everything and everything in it's place
1 Correct places for items are not obvious X
2 Items are not in their correct places X
3 Walkways, workstations, equipment locations are not indicated X
4 Items are not put away immediately after use X
5 Height and quantity limits are not obvious X
Subtotal >> 0 1 4 6 0
Shine
Cleaning, and looking for ways to keep it clean and organised
1 Floors,walls stairs, and surfaces are free of dirt, oil, and grease X
2 Equipment is not kept clean and free of dirt, oil, and grease X
3 Cleaning materials are not easily accessible X
4 Lines, labels, signs, etc are not clean and unbroken X
5 Other cleaning problems of any kind are present X
Subtotal >> 0 2 4 0 0
Standardize
Maintain and monitor the first three categories
1 Necessary information is not visible X
2 All standards are not known and visible X
3 Checklist don't exist for all cleaning and maintenance jobs X
4 All quantities and limits are not easily recognizable X
5 How many items can't be located in 30 seconds X
Subtotal >> 0 1 4 6 0
Sustain
Stick to the rules
1 How many workers understand the 5s principals X
2 How many times last week was daily 5s not performed X
3 Number of times that personal belongings are not neatly stored X
4 Number of times job aids are not available or up to date X
5 Number of times last week daily 5s inspection were not performed X
Subtotal >> 0 1 0 6 8
Total >> 0 6 16 24 8
Grand Total 5S Score 54
0
5
10
15
20
1 - Sort
2 - Set in
Order
3 - Shine
4 -
Standardize
5 - Sustain
Monthly 5S Overview
65
60
55
60
45
51
46 46
54
0
10
20
30
40
50
60
70
80
90
100
Jan-
06
Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Monthly Audit Results

5S your computer hard/shared drive
5S Principle Description
Sort • Check all your files and software, and get rid of any that
are unnecessary
Set In Order • Organize your files and optimize the use of file folders
• Keep in mind how often you need them and how much
time you need to store them
• Create specific shortcut icons for the most used files or
programs
Shine • Eliminate any files under deleted items, sent items and
the recycle bin
Standardize • Establish procedures for maintaining your computer 5S
system
Sustain • Include hard drives in 5S audits
• Focus on how people maintain files and program
organization, and the time they spend ding so

Why Visual Management?
• In an instant, view the situation globally or in
details
• Resources
• Tools & equipment
• Materials
• etc.
• Norms
• Methods
• etc.
• What's right
• What's wrong
• What's done
• What's left to be done
• The delays

3 Types of Visual Management
• Label to make it perfectly clear
where things belong and what the
procedures are
Visual
Display
• Quantify the path to targets for
success
• Graphs and Pareto charts
Visual
Metrics
• Create an error-proofed
environment to promote easy
adherence to standards
Visual
Controls

Examples of Visual Display
Status of skills training
Staff movements
Pockets for documents
Location for
fire extinguisher
Filing labels

3 Criteria of Kaizen
1. Does the idea reduce
waste, improve quality or
increase safety?
3. Is it standardized?
2. Does it address the root
cause?
ideas
ideas
KAIZEN

Kaizen Event Process
1. Set the Scene
2. Understand
Current Process
3. Develop
Future State
Design
4. Implement
Solutions
5. Report &
Celebrate

Kaizen Summary Sheet
Project type: 5S Area: Sales & Marketing Office Team Leader: John Smith
Before After
Reasons project chosen:
• Difficult to move around a cluttered
office
• Difficult to find information and
supplies
Tools used on project:
• Cleaning equipment and tools
• 5S principles
Results:
• Unwanted materials were discarded
• Less waste – e.g. transportation,
motion, waiting, etc.
• Improved staff morale
Next steps:
• Conduct monthly 5S audits
• 5S for other common areas

A Simple Kaizen Implementation Roadmap
Create
Awareness
Build
Capability
Operations
Management
&
Improvement
Kaizen
Training
Kaizen
Leadership
Training
Build Kaizen
Activity Board
Kaizen #1:
5S
Kaizen #2:
Waste
Elimination
Value Stream
Mapping for Key
Processes
Train-the-
Trainer
Training
Information Sessions
for Whole Organization
Senior
Management
Awareness
Kaizen #3:
Standardization
Month 1
Kaizen Methods &
Tools Training
Month 3Month 2
Daily Management Meeting
Kaizen Update in
Monthly
Newsletter &
Intranet

About
Operational
Excellence Consulting

About Operational Excellence
Consulting
• Operational Excellence Consulting is a management training and
consulting firm that assists organizations in improving business
performance and effectiveness.
• One of our unique strengths is going beyond a tools-focused
approach to seamlessly integrate people, processes, technology
and continuous improvement initiatives to suit the specific needs
and situations of our clients.
• We provide corporate learning programs and management advisory
services to assist our clients to achieve breakthrough in business
performance and effectiveness. Our aim is to support our clients in
designing, managing and executing lasting beneficial change.

To download this presentation,
please visit us at:
www.oeconsulting.com.sg
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Office Kaizen by Operational Excellence Consulting

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