Friday, August 14, 2020

Lesson 4 - Kaizen vs Problem Statements

Kaizen in Japanese means “good change”. It’s associated with continuous improvement that drives TPS and Lean. 

Kaizen is not only a method that creates changes, but it fosters a mindset that all work and has quality built in. Instead of waiting till the end of the job when the product or service is inspected, the operator not only does the task correctly, first time every time, but the product does not leave his station without it meeting 100 percent customer satisfaction.


There are three basic types of Kaizens:
  • Just Do It,
  • Blitz, and,
  • Events or Charters that will be covered in a follow up lesson.
A Kaizen is a Lean process that is initiated with a Kaizen form, usually submitted to a Kaizen committee or supervision for further instructions.

The Kaizen event, to be more specific, is a "Kaikaku", meaning drastic change.  Kaizen normally targets small and incremental changes; however, some companies, due to Corrective Action and Preventive Action, require immediate decision making, and the Kaizen Event or Charter is implemented which, to some, is more like a tamed version of a Six Sigma Project Charter.

Another important note is the Project Charters, due to problem statements; whereas, Kaizens, according to Taiichi Ohno, are appropriate to improve Standardized Work as explained in the video below.


Problem Statement

Problem Statements are what Six Sigma identifies and cleans up. It uses policies, processes, work instructions and job aids to create a path that focuses on First Time Yield. It also does not fault an operator as if the process was clearly identified and designed, an operator is not capable of making a mistake. Again from the last chapter, problem statements have occurred, and it is the job of a Six Sigma team to clearly identify the problem, fix it and see that it doesn’t happen again through scientific management and statistical probability.  Problem Statements undergo a Work Breakdown Structure or WBS to create multiple objectives that are resolved through a Project Charter. 

This will be covered in a follow up lesson.

Problem Statement Exercise

____________ is a company that is about ______ years old. It is located in ___________address ___ that produces ____________ products or provides _________ services to customers in_________. It has _____________ employees and earns _____________ per year.

As a company, its (ie. on time delivery) performance from its (marketing, sales, finance, HR, admin, customer service, IT, purchasing, warehouse, dispatch / logistics, operations, quality, R&D) division is not meeting its (_________) demands and requirements.

(Do not combine divisions. Make each problem statement separate). Oftentimes, they are related. Combining will create a scope that’s unmanageable.

It’s been exposed, through internal sources, that this problem creates (pain points, waste, defects, delays, complaints, dissatisfaction).

Supporting facts, data and analysis indicate that this has been a problem exhibiting since (date) the following symptoms: (ie. complaints have increased by 25% since the beginning of the year.) Note: Do not suggest cause as the DMAIC process will uncover it.

Finance shows that _____ has (so far) cost the company $___, with an additional loss of revenue of $____per ____, if not resolved.

Objective Statement after decomposition and work breakdown structure (WBS), Multiple Objective Statements will be defined through stratification and sub-groups.