Gemba Kaizen: A Commonsense Approach to Continuous Improvement Strategy

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Gemba Kaizen: A Commonsense Approach to Continuous Improvement Strategy

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Praise for Gemba Kaizen

It’s exciting to see an updated version of a classic book, Gemba Kaizen, which

shares a wealth of new healthcare examples and case studies from around

the world. A true sensei and master of kaizen, Mr. Imai shares sage and

timeless advice on engaging all team members in process improvements

and radical redesigns which are deeply meaningful to all stakeholders. The

methods in this book will help you improve quality and safety, reduce

waiting times, and improve the long-term financial position of your

organization. Highly recommended!

—Mark Graban, author of Lean Hospitals

and co-author of Healthcare Kaizen

Every business faces the iron triangle of quality, cost, and delivery.

Conventional thinking claims you cannot have all three. Not only does Mr.

Imai turn that thinking on its head, but he shows you in Gemba Kaizen

exactly how to do it.

—Matthew E. May, author of The Elegant Solution

and The Laws of Subtraction

Masaaki Imai has done it again. The second edition of his famous book

Gemba Kaizen not only describes all the tools necessary for any type of

business to implement a lean strategy but also includes a large number of

excellent case studies. These show how kaizen can be used to improve

hospitals, supermarkets, airport management, a bus line, and even software

development. This is a must-read for the leadership of any business.

My first exposure to lean [the term hadn’t been invented yet, we called

it Just-in-Time or the Toyota Production System] was at the beginning of

1982, during my first General Manager job at the General Electric Company.

We created a simple kanban system between one of my plants and one of my

suppliers. We dropped raw material inventory from 40 days to 3 days and

got a lot of unexpected side benefits in the areas of productivity, quality,

freed up space, 5S improvements, etc. Professor Schoenburger later did a

story on this where he said that this was the first real lean activity at The

General Electric Company. In late 1985 I joined the Danaher Company as

one of two Group Executives. One of my company presidents, George

Koenigsaecker, and I began introducing lean to Danaher in 1986. One of

the things that really helped us improve our knowledge of lean at the time

was Masaaki Imai’s first book, Kaizen. This was the most definitive work on

the subject and was a great help. Imai helped us even more in early 1987

when he ran a seminar in the Hartford, CT area [just down the street from

Jake Brake]. Imai used a Japanese consulting firm, Shingijutsu, to help run

his seminar and be responsible for the hands-on factory kaizen part of the

week. The three principals of Shingijutsu all had spent years working for

Taiichi Ohno, the father of the Toyota production system. Koenigsaecker

and I agreed that getting Shingijutsu to help us at Danaher would be a home

run for us and George worked diligently the rest of the week convincing

them. We became their first, and for four years, only American client and our

lean knowledge increased dramatically.

In 1991, I left Danaher to become CEO of The Wiremold Company,

also in the area. I, of course, brought Shingijutsu along with me and by 1996

Masaaki Imai was back in my life as he included a chapter on Wiremold

and what we had done in his new book, Gemba Kaizen. We have stayed in

touch over the years and Imai has become a true leader in the lean

movement throughout the world through his Kaizen institute. He clearly

understands that lean is a strategy, not just “some manufacturing thing”

and that it can apply to any business. He and I have discussed why is it so

difficult for most business leaders to understand this and to embrace lean.

Unfortunately there is no simple answer to this other than the fact that most

people just don’t like to change and implementing lean is massive change

(everything has to change) if you are to be successful. This latest edition of

Gemba Kaizen goes a long way to helping to solve this problem. First of all,

it lays out the lean philosophy and tools in a very simple way so that

executives should not only understand them but more importantly, not be

afraid to try them. More importantly however, Imai makes the case that

lean is a strategy and that it can be applied to any business. His case studies

of non-manufacturing companies where lean has had a dramatic impact

really help to make the point. Every leader of any type of organization

should read this book and follow what it says.

—Art Byrne, Operating Partner at J W Childs Associates, LP

and author of The Lean Turnaround

Gemba Kaizen

About the Author

More than any other business authority in the world, Masaaki Imai has

championed the concept of kaizen over the past three decades in thought,

word, and action. Mr. Imai is considered one of the leaders of the quality

movement and a pioneer of modern business operational excellence. Mr.

Imai is an international lecturer, consultant, and founder of the Kaizen

Institute, a leading continuous improvement consultancy with offices

worldwide. Mr. Imai’s first book, Kaizen—translated into 14 languages—is

the reference on the subject. Gemba Kaizen picks up where Kaizen left off,

introducing real-world application of continuous process improvement

methods in production and service businesses. The second edition is fully

revised with brand-new case studies, updated chapters, and current

references. In 2010 Mr. Imai was honored for his lifetime of achievement

with the first ever Fellowship of the Quality Council of India, the apex

quality body of the government of India.

Gemba Kaizen

A Commonsense Approach to a

Continuous Improvement Strategy

Masaaki Imai

Second Edition

New York Chicago San Francisco

Lisbon London Madrid Mexico City

Milan New Delhi San Juan

Seoul Singapore Sydney Toronto

Copyright © 2012, 1997 by the Kaizen Institute, Ltd. All rights reserved. Except as permitted under the

United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in

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sion of the publisher.

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CONTENTS

CHAPTER 1

CHAPTER 2

Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xiii

Acknowledgments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . xvii

About Kaizen Institute. . . . . . . . . . . . . . . . . . . . . . . . . . . xix

An Introduction to Kaizen . . . . . . . . . . . . . . . . . . . . . 1

Major Kaizen Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

Kaizen and Management

. . . . . . . . . . . . . . . . . . . . . 3

Process versus Result . . . . . . . . . . . . . . . . . . . . . . . . . 4

Following the PDCA/SDCA Cycles . . . . . . . . . . . . . . 4

Putting Quality First . . . . . . . . . . . . . . . . . . . . . . . . . 6

Speak with Data . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

The Next Process Is the Customer . . . . . . . . . . . . . . . 7

Major Kaizen Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Total Quality Control/Total Quality Management. . 8

The Just- in-Time Production System . . . . . . . . . . . . 8

Total Productive Maintenance . . . . . . . . . . . . . . . . . . 9

Policy Deployment . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

The Suggestion System . . . . . . . . . . . . . . . . . . . . . . . 10

. . . . . . . . . . . . . . . . . . . . . . 10

Small -Group Activities

The Ultimate Goal of Kaizen Strategy . . . . . . . . . . . . . . 11

Gemba Kaizen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

Gemba and Management . . . . . . . . . . . . . . . . . . . . . . . . 14

The House of Gemba . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Standardization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

The Five S (5S) of Good Housekeeping . . . . . . . . . . . . . 21

Muda Elimination . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

The Golden Rules of Gemba Management . . . . . . . . . . 23

Go to the Gemba First . . . . . . . . . . . . . . . . . . . . . . . 24

Check the Gembutsu . . . . . . . . . . . . . . . . . . . . . . . . 28

Take Temporary Countermeasures on the Spot . . . 29

vii

viii

| Contents

Find the Root Cause . . . . . . . . . . . . . . . . . . . . . . . . . 30

Standardize to Prevent Recurrence . . . . . . . . . . . . . 31

Application of the Golden Rules . . . . . . . . . . . . . . . . . . 33

CHAPTER 3

Quality, Cost, and Delivery at the Gemba. . . . . . . 37

Quality: More Than Just a Result . . . . . . . . . . . . . . . . . . 37

Quality Management at the Gemba . . . . . . . . . . . . . . . . 40

Cost Reduction at the Gemba . . . . . . . . . . . . . . . . . . . . . 44

Improve Quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

Improving Productivity to Lower Costs . . . . . . . . . . 45

Reduce Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . 45

Shorten the Production Line . . . . . . . . . . . . . . . . . . 46

Reduce Machine Downtime . . . . . . . . . . . . . . . . . . 46

Reduce Space . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

Reduce Lead Time (Throughput Time) . . . . . . . . . 47

Role of the Gemba in Overall Cost Reduction . . . . 48

Delivery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

Quality Improvement and Cost Reduction

Are Compatible . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

CHAPTER 4

Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

Maintain and Improve Standards . . . . . . . . . . . . . . . . . . 51

Operational Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . 53

Key Features of Standards . . . . . . . . . . . . . . . . . . . . . . . . 54

Toyoda Machine Works . . . . . . . . . . . . . . . . . . . . . . . . . . 57

The Kaizen Story . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

The Toyota Business Practice: The Standard

Problem-Solving Story at Toyota . . . . . . . . . . . . . . . . 58

Kaizen and International Quality Standards . . . . . . . . . 61

CHAPTER 5

The 5S: The Five Steps of Workplace

Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

Good Housekeeping in Five Steps . . . . . . . . . . . . . . . . . 66

5S for the City: Civic Pride in Romania . . . . . . . . . . . . . 67

A Detailed Look at the Five Steps of 5S . . . . . . . . . . . . . 69

Seiri (Sort) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70

Contents | ix

Seiton (Straighten) . . . . . . . . . . . . . . . . . . . . . . . . . 72

Seiso (Scrub) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74

Seiketsu (Systematize) . . . . . . . . . . . . . . . . . . . . . . . 75

Shitsuke (Standardize) . . . . . . . . . . . . . . . . . . . . . . 75

Introducing 5S . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76

CHAPTER 6

Muda . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79

Muda of Overproduction . . . . . . . . . . . . . . . . . . . . . . . . 80

Muda of Inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82

Advertisement

Muda of Defects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82

Muda of Motion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

Muda of Processing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83

Muda of Waiting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

Muda of Transport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

Muda of Time . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87

Categorizing Muda in the Service Sector . . . . . . . . . . . . 87

Muda, Mura, Muri . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90

Mura (Variation) . . . . . . . . . . . . . . . . . . . . . . . . . . 90

Muri (Overburden) . . . . . . . . . . . . . . . . . . . . . . . . . 90

Removing Muda from Public-Sector Organizations . . . 91

CHAPTER 7

The Foundation of the House of Gemba . . . . . . . . 95

A Learning Enterprise . . . . . . . . . . . . . . . . . . . . . . . . . . . 96

Suggestion System and Quality Circles . . . . . . . . . . . . . 99

Building Self- Discipline . . . . . . . . . . . . . . . . . . . . . . . . . 100

CHAPTER 8

Visual Management . . . . . . . . . . . . . . . . . . . . . . . . . . 103

Making Problems Visible . . . . . . . . . . . . . . . . . . . . . . . . 103

Staying in Touch with Reality . . . . . . . . . . . . . . . . . . . . 104

Visual Management in the Five Ms (5M) . . . . . . . . . . . 106

Manpower (Operators) . . . . . . . . . . . . . . . . . . . . . 106

Machines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107

Materials . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107

Methods. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107

Measurements. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107

Visual Management to Manage Complexity . . . . . . . . 108

x | Contents

Visual Management with 5S . . . . . . . . . . . . . . . . . . . . . 109

Posting Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110

Setting Targets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 111

CHAPTER 9

The Supervisors’ Roles in the Gemba . . . . . . . . . . 113

Training Within Industries. . . . . . . . . . . . . . . . . . . . . . . 113

Managing Input (Manpower, Materials,

and Machines) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 117

A Day in the Life of a Supervisor at Toyota

Motor Manufacturing Kentucky. . . . . . . . . . . . . . . . 120

Morning Market (Asaichi) . . . . . . . . . . . . . . . . . . . . . . 126

Best- Line Quality- Assurance Certification . . . . . . . . . 130

Defining Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132

Pseudo managerial Functions of Supervisors

in the Gemba . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132

CHAPTER 10

Gemba Managers’ Roles and Accountability . . . 135

Kaizen at Toyota Astra Motor Company

Role Manuals at TAM . . . . . . . . . . . . . . . . . . . . . . . . . . 136

TAM Group Leaders’ Responsibilities . . . . . . . . . . . . . 139

TAM Foremen’s Responsibilities . . . . . . . . . . . . . . . . . 140

TAM Supervisors’ Responsibilities . . . . . . . . . . . . . . . . 140

Items That Need to Be Managed in the Gemba . . . . . . 141

Group Leaders’ Daily Schedule of Activities:

Examples from the TAM Manual . . . . . . . . . . . 142

Group Leaders’ Activities: Production, Cost, and

Quality Examples from the TAM Manual . . . . 143

Foremen’s Activities: Cost -Reduction Examples

from the TAM Manual . . . . . . . . . . . . . . . . . . . 145

Supervisors’ Activities: Personnel and Training

Examples from the TAM Manual . . . . . . . . . . . 146

Section Managers’ Roles and Accountabilities:

Examples from the TAM Manual . . . . . . . . . . . 148

The Conditions Necessary for Successfully Defining

Roles and Accountability at TAM . . . . . . . . . . . . . . 148

Staff Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 149

On- the- Job Training . . . . . . . . . . . . . . . . . . . . . . . 149

Contents | xi

Formal Classroom Training . . . . . . . . . . . . . . . . . . 150

Voluntary Activities . . . . . . . . . . . . . . . . . . . . . . . . 150

The Identification of Potential Problems . . . . . . . . . . . 150

Hiyari Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150

Training in the Anticipation of Problems . . . . . . . 151

The Benefits of Kaizen at Toyota Astra

Motor Company. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 151

CHAPTER 11

From Just- In- Time to Total Flow Management . 153

Just-In-Time at Aisin Seiki’s Anjo Plant . . . . . . . . . . . 154

Takt Time versus Cycle Time . . . . . . . . . . . . . . . . . . . . 156

Push Production versus Pull Production . . . . . . . . . . . 157

Establishing Production Flow . . . . . . . . . . . . . . . . . . . . 158

The Introduction of JIT at Aisin Seiki . . . . . . . . . . . . . 160

The First Step of Kaizen at Aisin Seiki . . . . . . . . . 161

The Second Step of Kaizen at Aisin Seiki . . . . . . . 162

Spreading the Benefits of JIT to Other Industries . . . 163

Total Flow Management. . . . . . . . . . . . . . . . . . . . . . . . . 164

TFM Transformation in Company A . . . . . . . . . . . . . . 167

CHAPTER 12

Just -In -Time at Wiremold . . . . . . . . . . . . . . . . . . . . 183

CHAPTER 13

The CEO’s Role in Kaizen . . . . . . . . . . . . . . . . . . . . . 195

CHAPTER 14

Going to the Gemba . . . . . . . . . . . . . . . . . . . . . . . . . . 205

Gemba Kaizen and Overall Corporate Kaizen

Two-Day Kaizen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 207

Checklists as a Kaizen Tool . . . . . . . . . . . . . . . . . . . . . . 210

Gemba Kaizen Workshops . . . . . . . . . . . . . . . . . . . . . . . 211

Case Studies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 217

Lessons from a 20-Year Kaizen Journey . . . . . . . . . . . . 219

Changing the IT Culture at Achmea . . . . . . . . . . . . . . . 225

Daily Kaizen at Tork Ledervin . . . . . . . . . . . . . . . . . . . . 229

Kaizen in Public Spaces: Transforming

Rome’s Airports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233

xii

| Contents

Sonae MC: The Silent Revolution . . . . . . . . . . . . . . . . . 239

Surpassing Expectations through Kaizen at Embraco . . 249

Kaizen at Oporto Hospital Centre:

Making Patient-Centric Care A Reality . . . . . . . . . . 261

Kaizen Enables Innovation and Customer

Intimacy at Densho Engineering . . . . . . . . . . . . . . . 269

Kaizen Enables Innovation and Customer Intimacy . . 273

Cutting Red Tape at a Public Utility: Enexis. . . . . . . . . 275

People Power: Participation Makes the Difference

Advertisement

for Electrical Manufacturer in China . . . . . . . . . . . . 279

Rossimoda: Kaizen and Creative Product

Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 283

Finsa Uses Kaizen to Emerge Stronger from a Crisis . . 293

Innovating with Kaizen at Group Health . . . . . . . . . . . 301

Kaizen Helps Caetano Bus Deliver on Schedule. . . . . . 307

Kenyan Flour Producer Uses Kaizen to Increase

Capacity, Improve Efficiency . . . . . . . . . . . . . . . . . . 313

Kaizen as the Foundation for Innovation at Medlog . . 317

Growing with Kaizen at Supremia. . . . . . . . . . . . . . . . . 323

Exceeding Customer Expectations at

Walt Disney World . . . . . . . . . . . . . . . . . . . . . . . . . . 329

Kaizen Experience at Alpargatas . . . . . . . . . . . . . . . . . . 335

Transforming a Corporate Culture: Excel’s

Organization for Employee Empowerment . . . . . . 345

Quality in a Medical Context: Inoue Hospital . . . . . . 353

The Journey to Kaizen at Leyland Trucks . . . . . . . . . . 359

Tightening Logistics at Matarazzo . . . . . . . . . . . . . . . . 369

Stamping Out Muda at Sunclipse . . . . . . . . . . . . . . . . . 373

Housekeeping, Self- Discipline, and Standards:

Tokai Shin ei Electronics . . . . . . . . . . . . . . . . . . . . . . 381

Solving Quality Problems in the Gemba:

Safety at Tres Cruces . . . . . . . . . . . . . . . . . . . . . . . . . 389

Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 397

Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 407

Worldwide Contact Information for

Kaizen Institute Consulting Group . . . . . . . . . . . . 423

PREFACE

My two books, Kaizen: The Key to Japan’s Competitive Success (McGraw -

Hill, 1986) and Gemba Kaizen: A Commonsense, Low-Cost Approach to

Management (McGraw-Hill, 1997) laid the foundation for exploration of

kaizen as both a personal philosophy and business improvement system for

people outside of Japan. Initially grasped as a set of methods such as total

quality control, total productive maintenance, just- in- time management,

quality circles, and suggestion systems, the West is ever closer to under -

standing kaizen for what it truly is: a strategy to win by developing people

into problem solvers.

The second edition of Gemba Kaizen reveals how kaizen has spread to

every continent and culture, met with various unique challenges and

demonstrated its success. Gemba means “actual place” or “workplace” in

Japanese, and this book gives you a look into more than thirty actual places

where kaizen was successfully made a part of the culture. The book explains

how to use a commonsense, low -cost approach to managing the work -

place—the place where value is added—whether that place be the produc -

tion line, hospital, government department, shopping center, airport, or

engineering firm. This is not a book of theory, but a book of action. Its

ultimate message is that no matter how much knowledge the reader may

gain, it is of no use if it is not put into practice daily. Gemba Kaizen provides

not more theoreti cal knowledge, but a simple frame of reference to use in

solv ing problems. To that purpose, it provides many checklists, examples,

and case studies.

The Commonsense, Low- Cost Approach

to a Continuous Improvement Strategy

Today’s managers often try to apply sophisticated tools and technologies to

deal with problems that can be solved with a commonsense, low- cost

approach. They need to unlearn the habit of trying ever more sophisticated

technologies to solve everyday problems. Furthermore, leaders must

xiii

xiv | Preface

embrace kaizen and business excellence not as a tool or technique but as a

never-finished pillar of their strategy.

Putting common sense into practice is the subject of this book. It is for

everybody: managers, engineers, supervisors, and rank and file employees.

Along with putting common sense into practice, Gemba Kaizen deals with

the roles of managers and the need to develop a learning organization. I

believe that one of the roles of top management should be to challenge all

managers to attain ever higher goals. In turn, first-line supervisors need to

challenge workers to do a better job all the time. Unfortunately, many

managers today have long ceased to play such a role.

Another problem besetting most companies today is the tendency to

place too much emphasis on teaching knowledge, while disregarding group

learning of fundamental values derived from common sense, self- discipline,

order, and econo my. Good management should strive to lead the company

to learn these values while achieving “lean management.”

There are two approaches to problem solving. The first involves

innovation—applying the latest high -cost technology, such as state- of- the-

art computers and other tools, and investing a great deal of money. The

second uses commonsense tools, checklists, and techniques that do not cost

much money. This approach is called kaizen. Kaizen involves everybody—

starting with the CEO in the organization—planning and working together

for success. This book will show how kaizen can achieve significant improve -

ment as an essential building block that prepares the company for truly

rewarding accomplishments.

Back to Basics: Housekeeping,

Muda Elimination, and Standardization

During the past 27 years since Kaizen was first published, many have looked

for and asked “what is next?” but many times they are overlooking what is

directly in front of them. We must go back to the basics and ask how well

we have kept a steady, long-term focus on kaizen. Everyone in the company

must work together to follow three ground rules for practicing kaizen in

the gemba:

▲ Housekeeping

▲ Muda elimination

Preface | xv

▲ Standardization

Housekeeping is an indispensable ingredient of good man agement.

Through good housekeeping, employees acquire and practice self -discipline.

Employees without self-discipline make it impossible to provide products

or services of good quality to the customer.

In Japanese, the word muda means waste. Any activity that does not

add value is muda. People in the gemba either add value or do not add value.

This is also true for other resources, such as machines and materials.

Suppose a company’s employees are adding nine parts muda for every one

part value. Their productivity can be doubled by reducing muda to eight

parts and increasing the added value to two parts. Muda elimination can

be the most cost-effective way to improve productivity and reduce operating

costs. Kaizen emphasizes the elimination of muda in the gemba rather than

the increasing of investment in the hope of adding value.

A simple example illustrates the cost benefits of kaizen. Suppose that

operators assembling a household appliance are standing in front of their

workstations to put certain parts into the main unit. The parts for assembly

are kept in a large con tainer behind the operators. The action of turning

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around to pick up a part takes an operator five seconds, while actual

assembly time is only two seconds.

Now let’s assume the parts are placed in front of the oper ator. The

operator simply extends his or her arms forward to pick up a part—an

action that takes only a second. The opera tors can use the time saved to

concentrate on the (value- adding) assembly. A simple change in the location

of the parts—eliminating the muda involved in the action of reach ing

behind—has yielded a four -second time gain that trans lates into a three fold

increase in productivity!

Such small improvements in many processes gradually accumulate,

leading to significant quality improvement, cost benefits, and productivity

improvements. Applying such an approach throughout all management

activities, especially at top management levels, gradually achieves a just -in -

time, lean management system by teaching people the skills to see their work

in a new way and by teaching them the skills to change how they work. By

contrast, management primarily focused on innovation and breakthroughs

might be inclined to buy software, equipment or capabilities that would

enable the organization to perform their work much faster. But this would

not elimi nate the muda inherent in the current system. Furthermore,

xvi

| Preface

investing in the new device or capability costs money, while eliminating

muda costs nothing. We must innovate, but on a foundation of kaizen. The

case study from Densho Engineering and others in this book reveal how

this is done.

The third ground rule of kaizen practices in the gemba is stan -

dardization. Standards may be defined as the best way to do the job. For

products or services created as a result of a series of processes, a certain

standard must be maintained at each process in order to assure quality.

Maintaining standards is a way of assuring quality at each process and

preventing the recurrence of errors.

As a general rule of thumb, introducing good housekeep ing in the

gemba reduces the failure rate by 50 percent, and stan dardization further

reduces the failure rate by 50 percent of the new figure. Yet many managers

elect to introduce statisti cal process control and control charts in the gemba

without mak ing efforts to clean house, eliminate muda, or standardize.

Supporting these rules of kaizen is the foundation of the house of

gemba—namely, the use of such human-centered activ ities as learning

together, teamwork, morale enhancement, self -discipline, quality circles,

and suggestions. These are all methods not only for generating improve -

ments in safety, quality and cost, but positive means to kaizen and develop

our people.

Management (especially Western management) must regain the power

of common sense and start applying it in the gemba. These low- cost

practices will provide management with the opportunity for a future phase

of rapid growth via innovation—something Western management excels

at. When Western management combines kaizen with its innovative

ingenuity, it will greatly improve its competitive strength.

MASAAKI IMAI

Tokyo

ACKNOWLEDGMENTS

The first edition of Gemba Kaizen was born out of 10 years of teaching

kaizen, following the publication of my book Kaizen: The Key to Japan’s

Competitive Success in 1986. The second edition of Gemba Kaizen comes 15

years after the original publication, and much has changed in the world. I

have been fortunate to see the transforming effect of kaizen on people and

organizations worldwide over the past three decades.

I wish to recognize and thank everyone who has taken up kaizen. The

many cases and explanations of kaizen which are documented in this second

edition are the fruits of the many workers, engineers, administrators, nurses,

officials, managers and professionals who practice continuous improvement

and were engaged in gemba kaizen at our clients’ sites around the world.

This book is truly a result of teamwork, collaboration and the kaizen spirit

at work.

I would like to thank those people who assisted in writing the cases in

the first edition of this book. They include Kevin Meyer of Specialty

Silicone, and Arthur Byrne of J.W. Childs, Inc., Iwao Sumoge of Densho

Engineering, Joao-Paulo Oliveira of Bosch, Natacha Muro and Fernando

Coletti of La Buenos Aires, Nestor Herrerra of Molinos Rio de la Plata, Gary

Buchanan and Valerie Oberle of Disney University, Darla Hastings of

Quality Inc., Shoji Shiratori of Aisin Seiki, and Yutaka Mori of Toyoda

Automatic Loom Works as well as Yoshikazu Sano and Katsuo Inoue of

Toyoda Machine Works.

Besides those whose names appear in the book, I am particu larly

indebted to Professor Zenjiro Sawada at Kurume University, who gave me

the inspiration for the House of Gemba Management through his book

Visual Control of Factory Management (published in English in 1991 from

Nikkan Kogyo Shinbun); Ichiro Majima, Dean of Faculty of Business

Administration of Miyazaki Sangyo Keiei University, who provid ed much

valuable information in writing this book; Kaizen con sultants Kenji

Takahashi, Yukio Kakiuchi, and many others who worked together with us

in giving many gemba kaizen sessions at the clients’ sites around the world.

xvii

xviii

| Acknowledgments

Once again I am deeply indebted to my colleagues at the Kaizen

Institute since their work has made it possible to advance the ideas from

my books into actual practice. I would like to thank those who led the efforts

to document their experiences and the stories of our customers, including

Antonio Costa, Daniel Simoes, Vinod Grover, Sebastian Reimer, Jayanth

Murthy, Bruno Fabiano, David Lu, Mike Wroblewski, Julien Bratu, Jefferson

Escobar, Aakash Borse, Chris Schrandt, John Verhees, Wijbrand Medendorp,

Brad Schmidt, Ruy Cortez, Alexandra Caramalho, and Euclides Coimbra. I

would like to thank Jon Miller for managing this book project.

I must thank Jacob Stoller of StollerStrategies for bringing his editorial,

journalistic, and creative skills, which were essential to the successful

completion of this project.

I wish to thank my wife Noriko for her patience and for accompanying

me on my travels around the world; also to those who assisted in the making

of this book, in particular Patty Wallenburg of TypeWriting for the compo -

si tion, and from McGraw-Hill, Pamela Pelton and David Fogarty for the

production, and Judy Bass, who provided the spark for making the second

edition of this book a reality.

ABOUT KAIZEN INSTITUTE

Founded by Masaaki Imai in 1985, Kaizen Institute is the pioneer and global

leader in promoting the spirit and practice of kaizen. Its global team of

professionals is dedicated to building a world where it is possible for every -

one, everywhere, every day is able to “kaizen it.”

Kaizen Institute guides organizations (public and private) to achieve

higher levels of performance in the global marketplace—easier, faster, better,

and with lower costs. Kaizen Institute experts challenge clients to help

develop leaders capable of sustaining continuous improvement in all aspects

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