Transcript Unit 11 Perekayasaan Semula (Reengineering) dan Kaizen

Unit 11
Perekayasaan Semula
(Reengineering) dan Kaizen
Bahagian 1. Kaizen
KAIZEN
Assoc. Prof. Dr. Jegak Uli
Unit Objectives
• To understand the basic concept of kaizen
• To compare Western and Japanese
approach to management
• To compare the innovation and kaizenbased strategy
• To describe the elements and umbrella of
Kaizen
KAIZEN – THE CONCEPT
• KAIZEN as originally defined in the book
of: "KAIZEN, the Key to Japan's
Competitive Success", by Mr. Masaaki
Imai, is:
• KAIZEN means improvement.
• Moreover, KAIZEN means continuing
improvement in personal life, home life,
social life, and working life.
• When applied to the workplace KAIZEN
means continuing improvement involving
everyone - managers and workers alike.
KAIZEN – THE CONCEPT
• Kaizen means improvement
• Kaizen means ongoing improvement
involving everyone, including both
managers and workers
• Kaizen philosophy assumes that our
way of life – be it our working life,
our social life, or our home life –
deserves to be constantly improved
KAIZEN – THE CONCEPT
• The message is “not a day should go
by without some kind of
improvement being made
somewhere in the company”
• Simply staying in business required
unending progress, and Kaizen has
become a way of life
KAIZEN – THE CONCEPT
• 1. Means improvement
• 2. Ongoing improvement
involving everyone – top
management, managers, and
workers
• 3. “There will be no progress if
you keep on doing things exactly
the same way all the time”
• 4. It is everybody’s business
WESTERN VS JAPANESE APPROACH TO
MANAGEMENT
Western
Japanese
• West’s innovation-and • Japanese kaizen and
•
•
results-oriented
thinking
Innovation strategy is
technology driven and
thrives on fast growth
and high profit
margins
Practice of reviewing
people’s performance
strictly on the basis of
results and not
rewarding effort made
•
•
•
its process-oriented
way of thinking
Its messages is one of
improvement and
trying to do better
It does not mean that
innovation can or
should be forgotten.
Both innovation &
Kaizen are needed
JAPANESE MANAGEMENT
Figure 1: Japanese Perceptions of Job Functions (1)
Top Management
Middle Management
Improvement
Supervisors
Maintenance
Workers
Figure 2: Japanese Perceptions of Job Functions (2)
Top Management
Middle Management
Supervisors
Workers
Innovation
KAIZEN
Maintenance
Has two major
components:
• 1. Maintenance –
activities directed
toward maintaining
current
technological,
managerial and
operating standards
• 2. Improvement –
those directed
toward improving
current operating
standards
• 3. Improvement can
be broken down into
KAIZEN and
JAPANESE MANAGEMENT
In Japanese management, three (3) functions
should happen simultaneously within any
organizations:
1. Maintenance,
2. Innovation, and
3. KAIZEN.
1. Maintenance
• By maintenance, we refer to
maintaining the current status, the
procedures are set and the standards
are implemented.
• People in the lower level of organization
mostly do that, they maintain their
standards.
2. Innovation
• By Innovation, we refer to breakthrough
activities initiated by top management,
buying new machines, new equipment,
developing new markets, directing R&D,
change of strategy etc.
3. KAIZEN
• In the middle there is KAIZEN, small steps
but continuing improvement.
• KAIZEN should be implemented by the
lower/middle management and the workers,
with the encouragement and direction of the
top.
• The top management responsibility is to
cultivate a KAIZEN working climates and
cultures in the organization.
JAPANESE MANAGEMENT
• Kaizen signifies
small
improvements
made in the status
quo as a result of
on going efforts
• Innovation involves
a drastic
improvement in the
status quo as a
result of large
investment in new
technology and/or
equipment
WESTERN MANAGEMENT
• Western
Figure 3: Western Perceptions of Job Functions
Top Management
Innovation
•
Middle Management
Supervisors
Workers
•
Maintenance
perception of
management is
given in Figure 3
There is little
room for KAIZEN
concept
The worst
companies are
those which do
nothing but
maintenance – no
internal drive for
kaizen or
innovation
Comparison of Innovation and Kaizen-based Strategy
Innovation:
• Creativity
• Individualism
• Specialist-oriented
• Attention to great
•
•
•
Kaizen:
• Adaptability
• Teamwork (systems
•
leaps
•
Technology-oriented
Information: closed, •
•
proprietary
Functional
•
(specialist)
•
orientation
•
Seek new technology
•
Line + staff
•
•
• Limited feedback
approach)
Generalist-oriented
Attention to details
People-oriented
Information: open, shared
Cross-functional orientation
Build on existing technology
Cross-functional organization
Comprehensive feedback
Important Elements of Kaizen
1. A systematic and collaborative
approach to cross-functional
problem-solving
2. A custom-driven strategy for
improvement – seek to satisfy the
customer and serve customer needs
3. A system approach and problemsolving tools
Important Elements of Kaizen
4. A process-oriented way of thinking
and people’s process-oriented efforts
for improvement
5. A gradual rather than abrupt change
6. Everybody’s business
The Kaizen Umbrella
• Customer orientation
• TQC (total quality
•
•
•
•
•
•
control) or CWQC
(Company-wide
Quality Control)
Robotics
QC (Quality Control)
Circles
Suggestion system
Automation
Discipline in the
workplace
TPM (Total Productive
Maintenance)
• Kamban (signboards,
•
•
•
•
•
•
•
cards or chits)
Quality improvement
Just-in-time (JIT)
Zero defects (ZD)
Small-group activities
Cooperative labormanagement relations
Productivity improvement
New-product
development
Problem-solving is the Starting Point of KAIZEN
• The starting point of kaizen is to
recognize the need
• This comes from recognition of a
problem
• If no problem is recognized, there is
no recognition of the need for
improvement
• Complacency is the arch enemy of
KAIZEN
Problem-solving is the Starting Point of KAIZEN
• It emphasizes problem-awareness and
provides clues for identifying problems
• Once identified, problems must be solved
• Thus Kaizen is a problem-solving process
• Kaizen requires the use of various
problem-solving tools
• Improvement reaches new heights with
every problem is solved – the
improvement must be standardized
Kaizen and QC Circles, TQC , CWQC
• A QC circle is defined as a small group
that voluntarily performs quality-control
(QC) activities within the shop
• The small group carries out its work
continuously as part of a company-wide
program of quality control or TQC (total
quality control) or CWQC (company-wide
quality control) and improvement within
the workshop
Kaizen and QC Circles, TQC , CWQC
• Over the years, QC has been elevated to
SQC (statistical quality control), and then
TQC or CWQC
• TQC and CWQC mean company-wide
Kaizen activities involving everyone in the
company, managers and workers alike
• QC circles have played an important part
in improving product quality and
productivity
Insemination of KAIZEN into the Organization
• Not a day should go without some kind of
•
•
•
improvement being made somewhere in the
company.
When KAIZEN is adapted in organizations and
management perspectives, however, it is easier
to talk about it than to implement it.
It is very natural that people will propose some
kind of change in their own work place, when
they become unsatisfied with their present
conditions.
Some of the improvements could be carried out
right away.
Insemination of KAIZEN into the Organization
• Perhaps, the boss won't even notice them.
• However, when approval is required,
several kinds of responses from the boss
could have taken place.
• The ideal situation is that the boss
encourages their subordinates to carry out
their ideas.
• The boss then appreciates the efforts or
gives recognition.
Insemination of KAIZEN into the Organization
• That's what people expect when they
propose something.
• The positive response given by the boss
will then develop trust with the
subordinates and stimulate other
improvements.
• Cumulatively, this will create momentum
for continuing improvement.
BASIC TIPS FOR KAIZEN ACTIVITIES
• Discard conventional fixed ideas.
• Think of how to do it, not why it
•
cannot be done.
Do not make excuses. Start by
questioning current practices.
BASIC TIPS FOR KAIZEN ACTIVITIES
• Do not seek perfection. Do it right
•
•
away even if for only 50% of target.
Correct it right away, if you make
mistake.
Do not spend money for KAIZEN, use
your wisdom.
BASIC TIPS FOR KAIZEN ACTIVITIES
• Wisdom is brought out when faced
•
•
•
with hardship.
Ask 'WHY?" five times and seek root
causes.
Seek the wisdom of ten people
rather than the knowledge of one.
KAIZEN ideas are infinite
Bahagian II: Perekayasaan Semula
(Reengineering)
Reengineering: some basic
concepts
Assoc. Prof. Jegak Uli
The Official Definition
• The fundamental rethinking and radical
redesign of business processes to bring
about dramatic improvements in
performance.
The Key Words
• dramatic -- improvements not marginal,
not 5 or 10 % but quantum leaps.
• radical -- going to the roots of things.
Starting over, reinventing.
• process -- a group of related tasks that
together create value for customers e.g..
order fulfillment.
• redesign -- the design of processes, how
work is done
What Reengineering is Not
• it is not downsizing
• it is not restructuring
• it is not a fad -- it works, brings about
huge improvements
• it is not more of the same -- it is
revolutionary. Focus on end to end
processes and not specialization of labor
The Three Cs
• CUSTOMERS -- more sophisticated,
demanding, more alternatives, more
knowledgeable
• COMPETITION -- no longer local and
gentle, but more global and cutthroat.
• CHANGE -- change from trad.focus on
planning, control, and managed growth to
emphasis on speed, innovation, flexibility,
quality, service, and cost.
Top Ten Ways to Fail
• 1. Giving only lip service to reengineer
• 2. Don’t focus on processes
• 3. Spend a lot of time analyzing the
current situation
• 4. Proceed without strong executive
leadership
• 5. Be timid in redesign
Top Ten (contd.)
• 6. Go directly from conceptual design to
implementation
• 7. Reengineer slowly
• 8. Place some aspects of the business offlimits
• 9. Adopt a conventional implementation
style.
• 10. Ignore concerns of your people
The Primary Ingredients
• Leadership
• The Reengineering Team
The Tools of Reengineering
Leadership
• SIGNALS -- Explicit Communications
• SYMBOLS -- Personal Behavior
• SYSTEMS -- Measurements and Rewards
The Profile of a Reengineer
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•
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•
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Process oriented
Holistic perspective
Creativity
Restlessness
Enthusiasm
•
•
•
•
•
Optimism
Persistence
Tact
Team player
Communication skills
The Content of Reengineering
Work
• Understanding the old processes and
customer requirements
• Inventing a new process design that
shatters old assumptions
• Constructing the new process-- details
of operations, taking care of implications,
training
• Selling the new way
The Context of Re-e Efforts
• Uncertainty -- uncertainty eliminated
gradually
• Experimentation -- iterative. Designing on
paper must be followed by trying in reality
• Pressure -- must proceed at fast pace.
Always operate under conditions of great
urgency and intensity
Focus of Team Members
• Must share dedication to three things:
–
–
–
The process being reeingineered
The needs of the customer of that process
The team itself
Example of team characteristics
• CARING
• DARING
• SHARING
Problem, Rule, and Assumption
• PROBLEM -- a specific performance
shortcoming of the process e.g.. slow
cycle time.
• RULE -- a specific aspect of the process
design that causes the problem e.g.. must
have specialist for each task.
• ASSUMPTION -- a belief that gives rise to
the rule e.g.. the work is complex
Principles for Overcoming
Resistance to Change
• Resistance is natural and inevitable -Expect it.
• Resistance is not always apparent -- Find
it.
• Resistance has many motivations -Understand it
• Deal with people’s concerns not their
arguments -- Confront it
• There’s no one way to deal with resistance
The Key Mechanisms for
Overcoming Resistance
• INCENTIVES -- positive and negative
• INFORMATION -- dispel uncertainty and
fear
• INTERVENTION -- one-on-one connection
• INDOCTRINATION -- make change seem
inevitable
• INVOLVEMENT -- make people part of the
effort
Selling the Change
• Impediments to communications
• Ten Principles of Reengineering
communications
Impediments to
Communications
• Disbelief
• False familiarity
• Fear of layoffs
• The rumor mill
• Sloppy execution -- incomprehensibility,
abstractions, complexity, and clichés
Ten Principles of Re-eng
Communications
• 1. Segment the audience
• 2. Use multiple channels
• 3. Use multiple sources
• 4. Be clear
• 5. Communicate, communicate,
communicate
Ten Principles (contd.)
• 6. Honesty is the only policy
• 7. Use emotions, not just logic
• 8. Heal, console, encourage
• 9. Make the message tangible
• 10. Listen, listen, listen
References
• Hammer, M. and Champy, J.
Reengineering the Corporation: A
Manifesto for Business
Revloution.HarperCollins, New York, 1993
• Hammer, M. and Stanton, S.A. The
Reengineering Revolution: A
Handbook. HarperCollins, New York,
1995.
The End