Kaizen and kanban

Welcome to our
presentation
ON
KAIZEN & KANBAN

PRESENTED BY
GROUP:08
MEMBERS
1. RASEL AL MASUD
2. RANJIT BISWAS
3. MD. RABIUL HASAN
4. Dipok kumar Singha
5. Dipon Roy
REG. NO.
2012334006
2012334031
2012334059
2012334067
2011334049

CONTENT
 What is KAIZEN
 KAIZEN Philosophy
 KAIZEN Umbrella
 Selected KAIZEN toolkit
 What is kANBAN
 Types of KANBAN
 KANBAN RULES
 FUNCTIONS OF KANBAN
 Implementing KANBAN
 KANBAN Visual Signals
 Benefits of KANBAN
 Case study of Kaizen
 Case study of Kanban
 conclusion
1

KAIZEN
 Kaizen is a Japanese philosophy for process improvement
that can be traced to the meaning of the Japanese words
‘Kai’ and ‘Zen’, which translate roughly into ‘to break
apart and investigate’ and ‘to improve upon the
existing situation’.
 The aim is to achieve continuous improvement in costs,
quality, flexibility, productivity and also that
improvements result in lower costs.[Garcia et al. (2009)]
2

PHILOSOPHY OF KAIZEN
 Waste is the enemy
 Everyone should be involved
 Built on a cheap strategy
 Can be applied anywhere
 Focuses attention where value is created
 Innovation of work.
 Improvement should be done gradually and continuously
 Everyone is encouraged to come up with small
improvement suggestions on a regular basis. In
companies as Toyota and Canon, a total of 60 to 70
suggestions per employee per year are written down and
implemented. [Prošić S. (2011) ]
3

The Kaizen Umbrella
 According to Masaaki Imai, who
introduced kaizen to the international
audience with his seminal book, Kaizen:
The Key to Japan’s Competitive Success,
kaizenis an umbrella concept for a large
number of Japanese business
practices.[Ohno et al.]
4

 Figure: the KAIZEN umbrella.[Ohno et al.]
5

Selected KAIZEN toolkit
 Quality control circle: QCC is a small
group of workers who collectively find a
problem, discuss alternative remedies, and
propose a solution. QCCs voluntarily
perform improvement activities within the
workplace, as part of a company-wide
program of mutual education, quality
control, self-development and productivity
improvement. [Ohno et al.]
6

 Total Quality Management
TQM represents a number of management practices,
philosophies and methods to improve the way an
organization does business, makes its products, and interacts
with its employees and customers. It consists of
organization-wide efforts to install and make permanent a
climate in which an organization continuously improves its
ability to deliver high-quality products and services to
customers. [http.]
7

 Just-In-Time (JIT) System:
Just-in-time (JIT) is an inventory strategy companies employ
to increase efficiency and decrease waste by receiving goods
only as they are needed in the production process, thereby
reducing inventory costs. This method requires producers to
forecast demand accurately.
[ http://www.investopedia.com/terms/j/jit.asp ]
8

 Suggestion System
A Suggestion System is the method by which the ideas and
suggestions of employees are communicated upwards
through the management hierarchy to achieve cost savings
or improve product quality, workplace efficiency, customer
service, or working conditions. Examples range from simply
placing suggestion boxes in common areas, to implementing
formal programs with committees reviewing ideas and
rewards given for successful adoption of those ideas. [Ohno
et al.]
9

 Jidoka (autonomation):
Jidoka is a control process held, one of the basic solution
improving assurance of the quality production; defects of
the processed part are automatically found by the
machine, which immediately stops its working
mode.[Karkoszka T. and Honorowicz J.(2009)]
10

KANBAN
WORD ORIGIN & MEANING
 Kanban is a Japanese word that means “signboard”.
 The word KANBAN means a sign board of a store or
shop.
 Kanban is a Lean and just-in-time (JIT) technique, which
was created to control inventory levels and the
production and supply of components.
11

TYPES
There are two types of Kanbans:
1. Production kanban (p-kanban): signals the need to
produce parts.
2. Conveyance kanban (c-kanban): signals the need to
deliver parts to the next work center.[Stevenson, W. J.
2004]
TYPES
12

KANBAN RULES
The pre-conditions for operating KANBAN are:
 Do not send defective products to subsequent process.
 The subsequent process comes to withdraw only what is
needed.
 Produce only the exact quantity withdrawn by the
subsequent process.
 Equalize production.
 KANBAN is a means to fine tuning.
 Stabilize and rationalize the process. [Jain K.C. and Aggarwal
L.N.]
KANBAN RULES
13

FUNCTIONS OF KANBAN
KANBAN has two functions:
 To contain information that serve as a work order.
 To move with the actual material. [[Jain K.C. and Aggarwal
L.N.]
14

Implementing Kanban
The seven steps to implementing kanban:
1. Collect data
2. Calculate the kanban size
3. Design the kanban
4. Train everyone
5. Start the kanban (implementation)
6. Audit the kanban
7. Improve the kanban
15

Kanban Visual Signals
 There are a numerous ways for setting up kanban
Visual signals. One may use one of the common types
of visual signals.
1. Kanban cards
2. Kanban Boards
3. Two-Card Systems
4. Faxbans
5. Electronic kanban
16

Benefits of KANBAN
KANBAN forces people to look at production processes in a different
way:
1. Reduces Inventory
2. Improve Flow
3. Prevents Overproduction, which is the mother of all wastes
4. Places control at the operations level
5. Improves responsiveness to changes in demand
6. Minimizes risk of having obsolete inventory
7. Reduces Throughput Time
KANBAN also drives the manufacturing process to constantly improve,
which is necessary in for any company to stay Lean, Fit & Competitive.
17

Case study of KAIZEN
 Figure: Cost improvement for a work cell in Boeing
Commercial Airplane Company, IRC Division, U.S.
[MODARRESS B. et al.(2005]
18

Case study of KANBAN
 For case study, here Papalexi M., Bamford D. and Dehe
B.’s(2015) research work is considered.
 The pharmaceutical products are classified into ABC categories
 The category A includes the expensive products, category B
the products with a medium value and category C
characterises the cheaper ones.
 They used two-bin kanban system in ABC pharmaceutical
products.. After the pilot implementation of KANBAN system
for all products, it will store 56.8% fewer products and reduce
the cost by 71.8%. [Papalexi M. et al. (2015)]
19

Conclusion:
The kaizen and Kanban system were both coined by
the Japanese who were trying to find an ideal way of
developing their growth. By applying kaizen and
Kanban knowledge, any organization can ensure the
rapid rate of improvement.
20

References
• Garcia et al. (2009), ‘’ The impact of Kaizen Events on improving the performance of
automotive components’ first-tier suppliers’’, Int. J. Automotive Technology and
Management, Vol. 9, No. 4, pp -362-376
• https://en.wikipedia.org/wiki/Total_quality_management (accessed on 17 December 2016)
• Jain K.C. and Aggarwal L.N., ‘’ PRODUCTION PLANNING AND CONTROL AND INDUSTRIAL
MANAGEMENT’’, Khanna publishers.
• Karkoszka T. and Honorowicz J.(2009), “Kaizen philosophy a manner of continuous
improvement of processes and products”, Journal of achievement and manufacturing
engineering, Vol. 35, Issue 2, pp- 197-203
• MODARRESS B. et al.(2005), “Kaizen costing for lean manufacturing: a case study”,
International Journal of Production Research, Vol. 43, No. 9, pp-1751–1760
• Ohno et al., ‘’Introducing KAIZEN in Africa(preliminary draft): Ch.1: Introduction’’, available at
http://www.grips.ac.jp/forum/afgrowth/support_ethiopia/document/Jun09PMhosono_Ch.1.
pdf (accessed on 19 December 2016 )
• Papalexi M.et al.(2015),” A case study of kanban implementation within thepharmaceutical
supply chain”, International Journal of Logistics Research and Applications, available at
http://dabamirror.sci-hub.io/de7dcca26fe0d6eb06ee6577b7235517/papalexi2015.pdf
• Pdf ‘’KAIZEN DEFINITION & PRINCIPLES IN BRIEF A CONCEPT & TOOL FOR EMPLOYEES
INVOLVEMENT’’, available at http://www.michailolidis.gr/pdf/KAIZEN08.pdf (accessed on 12
December 2016)
• Prošić S. (2011) ‘’KAIZEN MANAGEMENT PHILOSOPHY’’, International Symposium Engineering
Management And Competitiveness 2011 (EMC2011) June 24-25, 2011, Zrenjanin, Serbia
• Stevenson, W. J. 2004.Operations Management,10th ed. McGraw-Hill/Irwin, New York, New
York
21

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