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Creating & Sustaining a world class excellence culture

Why do some organizations outperform their rivals? Why do people keep talking about TPS? What is that one thing that helps them to stay ahead in this competitive market?

Everybody knows that each and every organization have their own methods, tools, recipe for success. However one thing that is common for a long term & sustained success is creating a Kaizen® culture. Kaizen® is a Japanese word which means continuous improvement, not for one person, one day and at one place but for everyone, every day and everywhere.   Many organizations claim that they know what is Kaizen® or they have been doing Kaizen®& some of its strategies which are now known as Lean or Six sigma, they forget that they need to build a change ready organization that is customer focused, gemba oriented, people oriented and last but not the least believes in Kaizen® culture.

There is a clear need to build & sustain a culture focused on Kaizen® or continuous improvement. Although it’s not easy to move from tools to transformations and it can end in failure, “they succeed if you don’t give up.,” says our CEO, Jon Miller. If yourorganization recognizes that deploying akaizen culture will be a long journey of going through many changes from how people work and behave to how you develop leaders and solve problems, you will be successful. After all moving from tools to transformation is about continuously improving and making what is good today, better tomorrow.

What is needed is Focused Improvement. Let us make one thing clear right now i.e. Improvement is different from Focused Improvement. Improvement is like sunlight, lot of energy, but dispersed (wasted), small improvements, slow progress while in Focused Improvement the energy is concentrated & aligned, enable significant (large) improvements, small time required and there is a rapid progress. Also any improvement done by anybody is not Kaizen®. They are improvements but not kaizen. To put it in a straightforward language, extracting money by eliminating waste from process is kaizen. Kaizen® is process improvement which is large, done in strategically important areas, speedily and in a sustainable manner

  •   Using data, not opinion
  •   One step at a time – learning from experiments
  •   Using structured tools & routines, not anyhow

Direction of Change


To change culture, you have to change the gemba & change behaviors. Behaviors are the drivers of cultural change. It is all about developing people & leading differently. If you start improving the work areas & process, news behaviors start spreading and this reinforces behavior for cultural change.

For culture building, two aspects needs attention

One is People Deployment which is done through

  1. Kaizen® & Coaching kata
  2. Kaizen® Teian
  3. TWI – JM
  4. A Judicious mix


Second is Support by Change in Leadership routine by Daily Work Management.

The unseen management routines & thinking that embeds continuous improvement and adaptability across the organization – is Kaizen® Kata. What is visible is practices & tools and what is invisible is management thinking & routines. Therefore to succeed, understanding the Kata is more important than studying the practices & tools. Kaizen®kata is the routine for continual improvement – also a key feature of managing people everyday.

The Improvement Kata does not happen automatically or autonomously. Managers and leaders must work very hard every day to teach it and keep improvement going in an effective manner. Primary tasks of managers does not revolve around improvement per se, but around increasing improvement capability of people. Leaders should act like a teachers and focus on working on real problems.

Coaching Kata is about developing people not developing solutions. Practicing Kaizen kata is an everyday job of everyone in an organization while practicing Coaching kata is every leader’s responsibility.

Kaizen = improvement with ideas and not money

Teian = developing employees abilities to contribute ideas.

Kaizen Teian is a proposal – using kaizen thinking. It is an act of offering something for acceptance, adoption or performance.

Please note Teian ≠Suggestions.


TWI – the countermeasure

TWI provides a systematic approach to sustain change & continuously improve by

  • Indoctrinating people into an ‘improvement’ frame of mind.
  • Teaching people how to identify opportunities for improving their jobs
  • Training people how to generate ideas to take advantage of these opportunities
  • Showing people how to get these ideas into practice right away
  • Create ownership for people to maintain standard work

TWI – Job instruction teaches supervisors how to quickly train employees to do a job correctly, safely and conscientiously

TWI – Job methods training teaches supervisors how to continuously improve the way jobs are done

TWI – Job relations training teaches supervisors how to develop and maintain positive employee relations to prevent problems from happening and how to effectively resolve conflicts that arise.

Our daily work life consists of un-ending fire-fighting & crisis management! We continue to keep working on the same problems that were solved by us earlier! We make improvements but are hardly able to sustain them for long! Establishing DWM routines is the essential starting step towards building a culture of continual improvement in the workplace.

Continuous improvement leaders should make sure that new behavior patterns are consistent with the new methodology. This includes a commitment by leaders/managers to remain engaged in the improvement process by going to the gemba and participating in kaizen journey. Such management behavior and actions are part of a successful company’s overall effort to regularly communicate the impact kaizen has on financial targets and how the employees’ contributions impact them.


Mr.Vinod Grover, Founding Director of Kaizen Institute India

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Executing Change – Challenges for Executives


According to Wikipedia, a free encyclopedia, “Change Management is a process during which the changes of a system are implemented in a controlled manner by following a pre-defined framework/model with, to some extent, reasonable modification”.

Every word in the above definition are pretty clear and understandable until you reach the last line “with, to some extent, reasonable modification”. Now what’s the extent and how much modification is reasonable is the BIG question.

The challenge is not “Change”, but, “when to change”. When the times are good i.e. in an economic upswing executives “think” the organization does not have time to change and when times are bad, like the one we have today, the same executive “thinks” organization does not have money or investing money is a waste and so change not possible. At the end of the day the organization comes a full circle, without the “Change”

Ever since the industrial revolution, organizations and executives steering these organizations have, I am sure, applied and implemented “Change” using various models. Some of them have been successful, although for short time, some had no clue how to handle it and others just went off of the industrial radar without a blink.

So, what stops executives from “Changing”? Is it the nature of business? Or the executive himself. Organizations who have a “Differentiator” will win and live in the future and not the ones who chase or set “Benchmarks”.

This paper is an attempt to look at some questions that should be on the agenda for any management team that wants to not only improve its ability of executing change but also wants to change on a continual basis and in all types of situations.

Challenge 1

Overcome “Paradigm Pattern Paralysis (3P)”

The 3P syndrome, as we call it, is the biggest challenge faced by executives today. In short, Paradigm’s are set of filters in our mind which filter and interpret incoming data, the way we want it to. Pattern is the boundaries that we create based on that data. Now, if something does not fit into our boundaries, we tend to reject it immediately. Let’s try it, If I were to ask you, “How about eating a Square Water Melon” , what goes through your mind or what would you ask?

Well, to cut a long story short, most of you would think, Square Water Melon!! , What’s that? Or How’s that possible? That’s 3P at work. But the farmers in Japan thought otherwise and you can see the visual below, which breaks this 3P syndrome.


Some of the 3P questions that we have heard till now, while trying to implement lean are:

  • Our business does not need it today
  • We are the leaders and we set the benchmarks
  • Nothing works here.
  • We do not have time?
  • We are in a cost cutting mode?

One thing to keep in mind is “Principles are universal, but Practices are not”. “Change is a principle”, how we embrace it will be the “Practice” So, we need to look for ways of “To make it happen” rather than looking for ways of “How it will not happen”.

Challenge 2

Physical Barriers vis-à-vis Policy Barriers

While leading the change initiative, unavailability of a resource e.g. a desktop, might lead to delay in accruing the benefits of the change, a Physical Barrier. Such a barrier can be easily overcome by making a desktop available. The bigger challenge is the process of getting that desktop i.e. the procedures, approvals, form, L1 supplier etc, a Committee Approach and in-turn a Policy Barrier. So, all in all, putting a desktop is less than a 4 hour exercise, but actually happens in fortnight.

Leaders have to hit the latter really hard and ensure that it supports the change initiative and not otherwise. The success of any change initiative is driven by the policies that the organization forms.

Challenge 3

Understanding the” Change Equation”

Successful Change ** = Situation + Response

** Situation never really changes, but what can make

A change successful is the way we respond to it.



All change initiatives have the same equation but not everyone understands it and its phases. Every new model brings with it a new framework, and hence more confusion. Most of the organizations tend to forget the re-vitalize phase, which actually is very critical in continuing in this journey of Change.

The effort should be to increase the gap between the Execute phase and Re-vitalize phase, and more often than not it is achieved by breaking the Policy Barriers. What we need to understand is, though Buy-in and Push for Launch are very critical phases, but even more important is the bias for Execution.

Execution has both “success” and “failure” attached to it, what a leader needs to understand is, failures should not stop anyone from trying and implementing new ideas.

Organizations which accept failures have higher chances of succeeding in business.

Finally, leaders should track their Lean Success Cycle and should be able to judge the “dip” in their execution phase and start preparing for Re-vitalize phase. It’s not easy and that’s the reason it’s a challenge.

Our recommendation – “Have a improvement idea, however small, go ahead and implement it”.

Challenge 4

Making people understand how a Business Functions

In most of the organizations people work in silos i.e. in different departments and understand only their corner of business, which does not really help in improving business performance.

The fastest way to make people understand the business is the Organization’s Value Stream/s. whatever happens within the company is generally a part of the Value Stream.

Every business has two types of Value Streams. Main Value Streams, which generates revenue and typicallyhave external customers like Product Development, Product/Service delivery etc. and Secondary Value Streams, which although have internal customers arestill very critical and important e.g. Hiring, Purchasing, Billing etc


This exercise throws out your biggest bottlenecks and helps in discovering how business works. Research as well as our experience shows that more 70% of the time spent in a Value Stream is a Waste (in other words, Cost) from the customer’s perspective and adds no value to the product or service you provide.


These challenges, as mentioned in the paper, are by no means the only ones to be overcome for executing change. However, while working with different types of organization all across the globe we have found that these four challenges definitely stops organizations from anticipating change

To embark on this journey called “Change” the best time is today, right now. You don’t have to wait for a recession or a downturn to make you realize that “Change” is required.

Change is about challenging the status quo every moment, every day. The more we do it the better we get at it. So, our recommendation – “Learn by doing and Change by challenging”

Here’s wishing you all the best.


  • Big ideas to big results – Robert Miles
  • Extreme Toyota by Shimizu
  • Blue Ocean Strategy
  • The Black Swan – Nicholas Taleb
  • How the Paper Fish Learned to Swim – Flaum

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Technologies of Visual Management

A visual workplace is a work environment that is

  • self-explaining, self-ordering, self-regulating and self-improving
  • where what is supposed to happen does happen
  • on time, every time, day or night

……………..because of visual solutions

The Visual workplace would put an end to

  • Searching
  • Waiting
  • Interruptions
  • Questioning
  • Mistakes
  • Guessing
  • Delays
  • Rework
  • Mistake Proofing
  • Communication flow

..… For all time to come

The central purpose of visual systems……

  • To eliminate the numero uno enemy of the corporate world………..moving without working
  • How is this done?……….. by sharing information vital to the task-at-hand with the people who need it the most, i.e. production associates supervisors and managers.
  • And do it without speaking a word…………with visual solutions

Can you imagine an end to all your Nos !…

  • No Wandering
  • No Waiting
  • No Wondering
  • No Obstacle
  • No Extras
  • No Waste
  • No Searching
  • No Delays
  • No Secrets
  • No Detours
  • No Injuries

……….No Red Ink

A visual workplace is more than…

  • A collection of brooms and buckets & posters & signs.
  • The visual workplace is a compelling operational necessity.
  • It is crucial to meeting daily performance goals, central to your company’s war on waste.
  • It is fundamental to vastly reduced lead times and an accelerated flow.
  • The visual workplace installs the visual language of production directly into the physical work environment itself-and into your offices.

The physical workplace speaks for itself — enabled at last to tell us

  • Exactly where things are.
  • What needs to be done
  • By when
  • In what quantity.
  • By whom and how


Example of Daily Activity Display


The 5 Start-Up Requirements

  1. A clear, attainable vision
  2. A specific role for the individual
  3. An established improvement time policy
  4. A set of defined performance measures
  5. A step-by-step methodology


The 1st Question


To add value we need to know things that we are currently unaware of. This question kindles the need to know.

  • Ask this question repeatedly to dig out the specifics for you.
  • Then translate your answers into specific visual devices and mini systems.

The 2nd Question


If others are to add value then they need specific information that we have but they do not. This is  2nd question.

  • Ask yourself: What information do others need that we already know ?
  • If you still need help, ask people directly, then translate their answers into visual devices that share the information

The 1st Cycle of Work in 5S


Imagine standing in your immediate work area (you as the center) with your arms outstretched; the area that you span with your outstretched arms is your focus of control.

The 2nd Cycle of Work in 5S


When you take charge of your sphere of control &  continue applying 5S as an individual effort, it eventually touches someone else’s sphere of control
(the individual effort of some other person). Your spheres touch or even overlap, one enriching the other.


Each independent but joined individual effort will spread across your work area / department, connect, overlap, multiply and……

Spread further making a grid  pattern. This widens & covers all parts of the organization in a network pattern of effort.

And it doesn’t stop there. Individual spheres of creativity spill over the physical boundaries of the company and connect with individuals in other organizations……

……and the vision spreads in a Kaleidoscopic way!


Decentralized Inventory Control


Series of indicators on the Machine


10 Principal Components of Visual Communication

  1. Placing knowledge & information in the public domain
  2. Enabling the ownership of the environment by its
    occupants (territory)
  3. Enabling users to participate in creating rules & standards.
  4. Increasing the amount of work done by small groups
  5. Increasing informal contact outside of the hierarchy
  6. Developing a system of overlapping responsibilities
  7. Reorienting inspection functions toward observation of facts & problem-solving.
  8. The participation of production personnel in improvement projects in the workplace
  9. Returning to the shop-floor level after years of centralized management
  10. Returning to reality after years of management by abstractions

2 Recommendations for Management while sharing information

  1. Visual communication project should never be started / approached :
  • be started without first verifying the company’s commitment to the path defined by the 10 Principals
  • Purely as technique

3 Golden Rules

For the degree of uniform perception

The objectives must be –

  1. Realistic
  2. Precisely defined
  3. Prioritized

Some Documented Results of Visual Order

15% increase in throughput

72% cut in materials handling

60% decrease in floor space

80% decrease in flow distance

65% reduction in rack storage

45% decrease in number of Handling

12% decrease in engineering cycle time

50% decrease in annual physical inventory time

96% decrease in defects


Acknowledgement: book on visual management by Dr. Gwendolyn D. Galsworth

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Innovative mind sustainable vision

To drive innovation in an organization, it is imperative that employees and managers at the top level craft their personal vision statement. However, it is not enough to just have a vision; an organization must strive to realize the vision with sustainable implementation of strategies

Innovation is described as an invention with commercial value so true. Conversely, an innovation can be categorized as an invention, but an invention cannot be categorized as an innovation if it lacks commercial value. This point is well exemplified by ‘the easy seat’ – a bicycle seat − designed by renowned futurist, Joel Barker. As per Barker, ‘the easy seat’ is a lot better than a normal bicycle ‘saddle’. This is because the easy seat tends to be more comfortable and less painful to the riders, especially for those going on long rides. However, a gap remains in this invention – gap between invention of the easy seat and its productive utilization. While a great invention, the easy seat cannot be termed as an innovation due to its lack of commercialization. An invention can qualify for the innovative space only if it holds a good value in the market. An invention can be an innovation only when it is put to a productive use. Innovating From Different Angles While innovation is often associated with creative ideas, it can have different connotations. Some attributes of innovation are as follows:

•Innovation = Old ideas + small customization

•Innovation = Old ideas + new ideas

•Innovation = Ideas from nature (biomimickry)

•Innovation = Radical improvements

The above attributes can be shaped by two kinds of innovators – process innovators and product innovators.

The Process Innovators

The process innovators comprise practitioners, who keep striving for benchmarks within the framework of a process. For instance, a process innovator in a call centre will look for new ways and processes to improve his call resolution time (AHT – Average Handling Time) and will go after the industry benchmark or will try to improve his benchmark. Consequently, this will lead the innovator to discover ‘innovative’ tools − business process re-engineering, six sigma, lean − to master the process. The challenge for the process innovators is not to match the benchmark or create a benchmark, but to look at innovative ways to get out of the process loop and create something new – a ‘differentiator’. Taking the example of AHT, a process innovator can achieve the benchmark value by reducing AHT without compromising on quality.

The Product Innovators

Product innovators are people who generally break the process barrier and create the ‘differentiator’. This concept can be better understood from an illustration of soft drink packaging given below:


Generally, product innovations are considered more effective as they add value to the system as a whole. Product innovation is the combined effect of process and product innovations that take organizations to the next level of growth.

Google is one such organization that has mastered the art of both process innovation and product innovation. Google started with process innovation when it streamlined its search engine features, and then it got into product innovations with Google earth, igoogle, Images, etc.

Cause and effect equation

Research shows that transformation as well as innovation in an organization is governed by a cause and effect (C&E) relationship. This relationship can be expressed in the following formula:

Y = f (x).

This formula states that Y is a function of x where,

x = independent variable Y = dependent variable

It means that ‘x’ is the input or one of the inputs and ‘Y’ is the output. In other words, the quality and quantity of the output will depend upon the quality and quantity of the given inputs.

Through the ‘innovation equation’, which is again a C&E equation, we look at those independent variables that lead to the dependent variable called innovation.

Innovation = f (vision, value index, implementation)

Simply put, innovation is a cumulative effect of vision, value index and implementation. Of these three inputs, the most important one is ‘vision’, without which the other inputs will not exist. Therefore, a person with a vision of becoming a differentiator will look at breaking the present paradigms of innovation.

In the process of breaking conventional barriers, the differentiator will explore ways  to  create the ‘value’ to support the implementation of his vision.                             

In order to decode the innovation equation, the inputs − vision, value index and implementation − have to be first taken into consideration.


Usually, change agents in organizations carry a vision. However, change agents should share this vision with the entire organization. Certain organizations have started aligning operational activities with organizational objectives with the help of balanced score cards, Hoshin Kanri (strategic management methodology), etc.

However, it is important for organizations to ensure that these tools are not restricted to operations, but are also implemented to embrace process and product innovations undertaken in the firm.

Value Index

This can be described as a score of organizational process or product vis-à-vis the old process or product. With this index, an organization can determine whether it is providing the right value to its clients at the right price. A firm can derive the value index by following a set methodology. Value index calculation demands investment in terms of time. In this calculation, the firm has to verify the nature of its deliveries that can be captured by a need/want analysis. The inferences from the analysis can be compared with existing deliverable to determine the differentiator.

Value index enables an employee to program his success and create a positive stress to develop something that probably Has never been tried and tested. But at the same time, if it were introduced, it would put the current practices back to zero. For instance, today’s mobile phones are as good as carrying your office with you.


It is defined as the ‘realization of an application or execution of a plan’. Implementation is the mission that will lead to realization of vision. However, despite being integral to an organization’s vision, organizations fail to develop sustainable implementation strategies. In today’s scenario, implementation happens at much slower speeds than is expected.                    

Although many organizations encounter failure at the implementation level, failure is considered the first step of successful implementation.

Though it is challenging to put together vision, value and implementation, innovation is all about taking up the challenge.

Making Innovation Happen


To put it simply, innovation can happen through value creation. Creating value for the customer is the only ‘buzzword’ for a sustainable innovation. This value can be created in the following ways:

Think differently: Normally people would start thinking differently only when they are pushed to do so. Organizations should create a culture where employees would be driven by habit to think different and look at innovation differently.

‘Within-the-box’ ideas: It is a general tendency to look ‘outside-the-box’ while innovating. However, innovators often fail to use the resources available within-the- box for creating something new. Therefore, people should be trained on structured innovation and its tools. Having said that, it would be worth reiterating that tools are just ‘idea enablers’ and they force innovators to think differently.

Numerous research papers have been written on the sinking of Titanic, and a documented research reports that the ‘Titanic’ had enough resources like wooden parts, boxes which could have been used by its travelers to survive. It is only that people looked outside the ship for help and not inside the vessel.

A classic case of evolving innovation is the ‘mobile phone’. People who invented the computer did not invent the mobile phone. As stated earlier, product innovators are generally from a different fraternity and are not bound by laws of old school of thought. However, product innovation practitioners have little edge on the process innovators. This is because a new product will not survive, if it is not followed up by process innovation. On the other hand, process innovation practitioners will have to get into product innovation eventually, the sooner the better.

Therefore, in order to drive innovation completely, both product and process innovators will have to work together to give the consumers an innovative world. The bottom-line is that vision is not enough; it has to materialize into innovation to drive the growth of an organization. 

Acknowledgement: The Industrial Source book

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Basic seven tool of quality

The seven Tools

  • Histograms
  • Pareto charts
  • Cause and effect diagrams
  • Run charts
  • Scatter diagrams
  • Flow charts
  • Control charts

Ishikawa’s Basic Tools of Quality

  • Kaoru Ishikawa develops seven basic visual tools of quality so that the average person could analyze and interpret data.
  • These tools have been used worldwide by companies, managers of all levels and employees
  1. Histograms

Histograms Defined


A histogram is a bar graph that shows frequency of data

Histograms provides the easiest way to evaluate the distribution of data

Creating Histograms

  • Collect data and short it into different categories.
  • Then label the data as the independent set or the dependent set

–          The characteristics you group the data by would be the independent variable

–           The frequency of that set would be the dependent variable

  • Each mark on either axis should be in equal increments.
  • For each category, find the related frequency and make the horizontal mark to show that frequency.

Examples of how the histograms can be used

Histograms can be used to determine distribution of sales

Say for instance a company wanted to measure the revenues of other companies and wanted to compare the numbers

  1. Pareto charts

Pareto chart defined


  • Pareto charts are used to identify and prioritize problem to be solved
  • They are actually histograms added by 80/20 rule adapted by Joseph Juran

–          Remember the 80/20 rules states that approximately 80% of the problems are created by approximately 20% of the causes.

Constructing a Pareto chart

  • First information must be selected based on types or classifications of defects that occur as a result of process.
  • The data must be collected and classified into categories
  • Then a histograms and frequency chart is conducted showing the number of occurrences

An example of how a Pareto chart can be used


Pareto charts are used when products are suffering from the different defects but the defects are occurring at different frequency or only few accounts for most of the defects presents and different defects incur different cost. What we see from that is a product line may experience a range of defects. The manufacturer could concentrate on reducing the defects which make up a bigger percentage of all the defects or focus on eliminating the defect that causes monetary loss.

  1. Cause and effect diagrams

Causes and Effect diagram defined


  • The cause and effect diagram is also called the ishikawa diagram or the fishbone diagram.
  • It is a tool for discovering all the possible causes for a particular effect.
  • The major purpose of this diagram is to act as a first step in problem solving by creating a list of possible causes.

Constructing a cause and effect diagram

First, clearly identify and defined the problem or effect for which the cause must be identified. Place the problem or effect at the right or the head of the diagram

  • Identify all the broad areas of the problem
  • Write in all the detailed possible causes in each of the broad areas.
  • Each cause identified should be looked upon for further more specific causes.
  • View the diagram and evaluate the main causes
  • Set goals and take action on the main cause

An example of when a cause and effect diagram can be used

  • This diagram can be used to detect the problem of incorrect deliveries.

–          Diagram on next slide

When a production team is about to launch a new product, the factors that will affect the final product must be recognized. The fishbone diagram can depict problems before they have a chance to begin.

Diagram of the incorrect deliveries Example:


  1. Scatter Diagram

Scatter diagrams Defined


Scatter diagram are used to study and identify the possible relationship between the changes observed in two different seats of variables

 Constructing a scatter diagram

  • First, collect two pieces of data and create a summary table of the data.
  • Draw a diagram labeling the horizontal and vertical axes.

–          It is common that the “cause” variable be labeled on the X axis and the “effect” variable be labeled on the Y axis.

  • Plot the data pairs on the diagram.
  • Interpret the scatter diagram for direction and strength.

An Example of When a Scatter Diagram Can Be Used

  • A scatter diagram can be used to identify the relationship between the production speed of an operation and the number of defective parts made.
  • An Example of When a Scatter Diagram Can Be Used (cont.)

–          Displaying the direction of the relationship will determine whether increasing the assembly line speed will increase or decrease the number of defective parts made. Also, the strength of the relationship between the assembly line speed and the number of defective parts produced is determined.

  1. Flow Charts

Flow Charts Defined



  • A flow chart is a pictorial representation showing all of the steps of a process.

Creating a Flow Chart

  • First, familiarize the participants with the flow chart symbols.
  • Draw the process flow chart and fill it out in detail about each element.
  • Analyze the flow chart. Determine which steps add value and which don’t in the process of simplifying the work.

Examples of When to Use a Flow Chart

  • Two separate stages of a process flow chart should be considered:

–          The making of the product

–           The finished product

  1. Run Charts

Run Charts Defined


  • Run charts are used to analyze processes according to time or order.

Creating a Run Chart

  • Gathering Data

–          Some type of process or operation must be available to take measurements for analysis.

  • Organizing Data

–    Data must be divided into two sets of values X and Y.

–    X values represent time and values of Y represent the measurements taken from the manufacturing process or operation.

  • Charting Data

–          Plot the Y values versus the X values.

  • Interpreting Data

–          Interpret the data and draw any conclusions that will be beneficial to the process or operation.

An Example of Using a Run Chart


  • An organization’s desire is to have their product arrive to their customers on time, but they have noticed that it doesn’t take the same amount of time each day of the week. They decided to monitor the amount of time it takes to deliver their product over the next few weeks.
  1. Control Charts

Control Charts Defined


Steps Used in Developing Process Control Charts

  • Identify critical operations in the process where inspection might be needed.
  • Identify critical product characteristics.
  • Determine whether the critical product characteristic is a variable or an attribute.
  • Select the appropriate process control chart.
  • Establish the control limits and use the chart to monitor and improve.
  • Update the limits.

An Example of When to Use a Control Chart

  • Counting the number of defective products or services
  • Do you count the number of defects in a given product or service?
  • Is the number of units checked or tested constant?


  • Process Flow Chart for Finding the Best Way Home
  • Construct a process flow chart by making the best decisions in finding the best route home.
  • Refer to the prior notes on flowcharts.
  • Remember: Define and analyze the process, build a step-by step picture of the process, and define areas of improvement in the process.



  • This presentation provided learning material for each of Ishikawa’s seven basic tools of quality
  • Each tool was clearly defined with definitions, a step-by-step process and an example of how the tool can be used.
  • As seen through the presentation, these tools are rather simple and effective.

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16 types of loss in Gemba


8 Availability Losses

Breakdown loss (failure losses)

Losses due to failures. Type of failure include sporadic function stopping failures and function – reduction failure in which the function of the equipment drop below normal levels like replacement of parts and repair, cases requiring 5 minute or more for repair.
Target is zero failures
To attain zero failure, it is necessary to correct the misconception about breakdown maintenance that failures are unavoidable

Planned Maintenance Time Loss (Shut Down Loss)

Time when equipment is shut down for maintenance. However shut down related work generally affect the operating time rate of equipment. Shutdown related work must be regarded as a loss and reduction of shutdown work time must be sought.

Setup Loss

e.g. Change of Dies, machining fixtures etc.

Setup and adjustment losses refers to time losses from the end of the production of a previous items through product – change adjustment to the point where the production of the new item ic = s completely satisfactory. SMED must. Adjustments how to reduce, eliminate? One slot adjustment or trial or error till 3-4 components is tried. 

Tool Change Loss / cutting blade losses

e.g. Change of Drill, tap, rammer, cutter etc.

Stoppage losses caused by changing the cutting blade due to breakage or caused by changing the cutting blade when the service life of the grinding stone, cutteror bites has been reached
What is your tool change loss? 5 or > 10 %.
Normally a fix number of time is set but if the tool breaks before that – it leads to change, adjustment and a new sort over all again.

Start up Loss

e.g. furnace, paint shop oven etc.

Start up losses are define as time losses from:

  1. Start up after periodic repair
  2. Start up after suspension (long time stoppage)
  3. Start up after holidays
  4. Start up after lunch breaks

When starting production, the losses that arise until equipment starts up, running and production processing conditions stabilize.
Do your machines have ‘Monday Disease?

Minor stoppage loss

i.e. Frequent stoppage for short time from seconds to less than 5 minutes for recovery
e.g. Component stuck to die while stamping etc.

Losses that occurs when the equipment temporarily stops or idles due to sensor actuation or jamming of the work The equipment will operate normally through simple measures (removal of the work and resetting)
The definition of these losses is as follows;

  • Losses that are accompanied by temporary functional stoppage
  • Losses allowing functional recovery through simple measures (removal of abnormal work pieces and resetting)
  • Losses that do not require part exchange or repair

To reduce minor stoppage, it is important to adequately analyze the phenomena involved and thoroughly eliminate minor defects. The target number of minor defects is zero.

Reduce speed loss

e.g. 50 parts produced against standard of 53 parts as a cycle time increased to 9 min from 8.5 due to less speed/feed

These are losses that occur because of equipment speed is slow. They can be defined as follows;
Losses due to a difference between the design speed (or standard speed for the item concerned) and the actual speed
Losses caused when design speed is lower than present technological standards or the desirable conditions
If the design speed is 60 seconds and actual cycle time is 65 seconds then the loss is 5 seconds.
The target is to reduce the difference between design speed and actual speed to zero

Defects and rework

i.e. any reworked or rejected product shows direct time loss due to poor quality

Sporadic defects are easily fixed, so they are rarely left uncorrected. Chronic defects in contrast, are often left as they are, because their causes are difficult to perceive and measures to correct them are seldom effective to realize zero defects, it is necessary to radically review defective phenomena. 

5 major losses that impede workers efficiency

Losses impeding human efficiency

Management losses

e.g. Row material/ persons not available esp. poor planning.

Waiting losses that are caused by management, such as waiting for material, waiting for a dolly, waiting for tools, waiting for instructions, waiting for repairs of breakdowns, etc. 

Operating Motion Loss (OML)

e.g. Excess motion like walking, bending, stretching etc.

These include motion losses due to violation of motion economy, losses that occur as a result of skill differences, and walking losses attributable to an inefficient layout. 

Adjustment & Measurement loss

e.g. Frequent tool adjustment after few components.

Work losses from frequent measurement and adjustment in order to prevent the occurrence and outflow of quality defects.

Line organization loss (LOL)

e.g. 75% manpower utilization due to poor line balancing

These are waiting time losses involving multi – process and multi  stand operators and line balance work in conveyor work

Logistics loss/ distribution losses/ losses resulting from failure to automate.

e.g. operator travels/ waits for want of material on stage.

Distribution man hour losses due to transport of materials products (proceed products) and dollies.
These are also personal losses resulting from non replacement with automated systems, although such replacement could be done. They include for instance case in which automated loading and unloading leading to manpower reduction is not implemented, although it could be done.
Losses of costs – three major losses that sat can impede effective use of production resource

3 major losses that impede efficient use of production subsidiary resources

Losses of cost

Energy losses

e.g. losses due to heat radiation, leakage of fuel, air, oil, losses, due to ineffective utilization of input energy (electric, gas, fuel oil, steam, air and water etc) in processing . Etc.

Because of electricity, fuel, utility cost represents a high percentage of the total cost, all companies are striving to reduce them

Die/ Tool loss

e.g. lose of tool due to regrinding, poor life of molds etc, repairs of Dies/ Tools FOS consumables

These are monetary losses resulting from the mfg and repair of dies, jigs and tools necessary for the production of products
Mfg new modules, replacement at the end of service life, breakdown, repair is expensive.
To reduce mfg costs it is absolutely necessary to extend MTBF of mould repair, to prevent product breakage and to extend the service life of replacement parts

Yield loss

e.g. Excess material stock/ weight, Exclusive splashes etc…Material losses due to differences in the weight of the input materials and the weight of the quality products.

Increase casting wall thickness to avoid below holes leading to more machining time and loss of material.

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