Kaizen At All Levels

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One of the common misconceptions about kaizen is that it is limited only to shop floor workers.  When an organization’s leaders hold this belief, it can significantly obstruct the ability to improve and often leads to losing interest in, or abandoning the kaizen process altogether.

Although the scope of kaizen activities changes depending on organizational level, continual improvement is everybody’s job regardless of position.  In fact, the ability of lower levels to succeed with kaizen is highly dependent on how well the higher levels are handling their improvement responsibilities

Success with kaizen requires a systems perspective and an understanding of how the elements work together to support each other and achieve success.  Each level in the organization has specific responsibilities for kaizen.

THE SCOPE OF KAIZEN ACTIVITIES
Team members generally participate in traditional small-scope kaizen activities.  They are the closest to the processes and direct their activities at removing the barriers that interfere with perfect execution of their work.  Although there is interest in making sure changes do not negatively affect other parts of the value stream, the focus is on reducing waste and improving the standardized work within their own process.

Depending on the company’s processes, the cycle time of a typical kaizen can be as short as 1-2 weeks.

Lower and middle managers (including supervisors, managers, and engineering/technical positions) tend to focus their improvement activities on the value stream.  This includes managing WIP and buffer levels, decreasing cycle times, improving handoffs between steps/areas, and reducing variation within processes.  Middle management improvements tend to be mid-scope in nature and can take 3-6 months to fully implement and verify the effectiveness of countermeasures.  Although the improvement activity at this level does not generally occur in a traditional kaizen team setting like team member improvements, it still follows the PDSA process.

It should be noted that supervisors and managers need to participate in and, at times, lead small-scope kaizens to stay sharp and remain connected to the processes for which they are ultimately responsible.

Upper managers and executives apply kaizen through business planning processes.  This includes setting the direction for the organization and assuring priorities are clear.  A difficult part of this responsibility is assuring that 2-3 critical breakthroughs are identified that will stretch the organization without overloading people.  Like all improvement activity, the hoshin process enables learning and improvement to occur by applying the PDSA cycle.  Since the focus is at the organizational level, the timeframe for improvements can be as long as 1-5 years.

Executives should also participate in small-scope kaizens on occasion for the same reasons as those in middle management positions.

ADJUST TO FIT THE ORGANIZATION
As with any other aspect of lean, the specifics of improvement activity at different levels should obviously be tailored to the organization.  The key is for everyone to understand their responsibilities in the improvement process and how they support its continued success.

Using Countermeasures - Not Solutions - To Address Problems

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One element of the Toyota Production System that has not gained much attention is the practice of addressing problems with countermeasures instead of solutions.  Although seemingly nothing more than an issue of semantics, I find the focus on countermeasures versus solutions rather significant.

Solutions Thinking

One of the common misunderstandings many people have about six sigma or kaizen is the idea that the tools will lead to the development of a solution to the root cause of a problem.  Organizations are highly complex systems and it is naive to think that any of the problems they face result from a single root cause or can be resolved by a single solution.

When all of the factors and interactions that can influence work are understood, it becomes clear that the best we can do is attack problems by addressing as many of the perceived causes as possible with the idea that we may never permanently fix the issue.  Because of this, remaining competitive requires continually developing and implementing measures to improve processes and accept the fact that some of the problems the organization faces may never completely disappear.

This is a difficult concept for many to accept because of the importance our culture places on solving problems.  Countermeasures can, at first glance, appear to be nothing more than temporary fixes to problems rather than permanent solutions - which is counter to what organizations are trying to achieve with lean.  In reality though, it is just the opposite, because a solutions thinking mindset can give a false sense of security that a particular problem has, in fact, been eliminated.  This can be very dangerous down the road if a problem that the team thinks it resolved returns.

This is not to say that a countermeasure approach focuses on symptoms of a problem rather than the root causes.  The tools and methods associated with an effective kaizen process help a team get down to the root causes of a problem.  The difference with this line of thinking, however, is the concept that there are several potential root causes to any problem and that actions taken to address a problem are based on what is known today with whatever information is currently available.  As the environment changes, the problem can reappear as a result of new or different interactions that were not known at the time it was last studied.  Although the initial countermeasures were valuable to the company, the team needs to continue its efforts to assure performance remains stable or continues to improve.

The Learning Organization

Another significant advantage of a countermeasure approach is the amount of learning that takes place within the team.  Rather than studying the problem, developing a solution, and moving on, the team moves around the PDCA cycle many times as it continues to address root causes with more and better countermeasures.  With each trip around the cycle, the team learns more about the process and the interactions where problems can occur.  As a result of continuing to develop and test hypotheses, team members truly become experts about the processes with which they work.

A Cultural Transformation

One of the critical challenges of lean thinking is changing the organization’s culture so people get the idea that continual improvement is not only possible, but necessary for survival.  Talking in terms of solutions, however, can actually interfere with this type of transformation.

In the most basic sense, the term countermeasure refers to action(s) taken in response to a problem, whereas a solution implies achieving a state where a problem has been eliminated.  [See definitions] Note that the term countermeasure makes no reference to solving a problem.

When the team starts referring to improvements as countermeasures instead of solutions, the culture starts to change.  People begin to believe that problems may never be completely solved and understand the need to continually strengthen processes.   Improvements are celebrated, but only as temporary steps toward the ultimate, albeit unattainable goal of perfection.

Starting at the Top

Adopting a countermeasure mindset within the organization requires a good deal of clarity and consistency from leaders.  There will be frequent opportunities to coach team members on a new way to look at and address problems.  As with any type of culture shift, however, there will be a good deal of inertia pulling the team back to old – and more comfortable - ways of thinking.  Because of this, it is critical that leaders apply relevant countermeasures when progress has slowed.  Like mountain climbing, organizational transformation can take significant time and effort to make a small amount of progress; while any lapse in focus can result in a fairly quick decline.

PDCA Explained One More Time

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Although it’s been around for decades, the PDCA (or Shewhart) Cycle continues to be one of the simplest – and most misunderstood – concepts in business. Introduced to the masses by W. Edwards Deming, many people don’t initially see the cycle as significantly different from the way they already work. After working with the cycle for many years, however, I have found that most organizations do not even come close to truly understanding or applying a PDCA mindset.

THE PDCA CYCLE

THE PDCA CYCLE

Americans generally follow a solutions thinking, rather than a PDCA approach that attempts to find the perfect solution and a “permanent" fix to a problem. The high level of complexity among interactions within processes and systems, however, along with the fact that the world is in constant change, makes it unrealistic to think that permanent solutions to problems can be developed. The best that one can expect when facing an issue is to address it under current conditions and, once addressed, continue to look for recurrence and further improvements.

Besides the time it takes to seek the perfect solution to a problem, solutions thinking can give a false sense of security that a situation is permanently resolved. As circumstances change, a "resolved" problem can reappear without warning and cause significant damage if the team has moved on and stopped looking for the condition to recur.

By contrast, the PDCA approach addresses problems as a potentially never-ending cycle. Instead of seeking the perfect solution, one or more countermeasures are developed and implemented quickly to stop the condition from continuing to cause damage. Since it is recognized that the countermeasure may not be a permanent fix or completely solve the problem, the team continues to monitor the process to determine the effectiveness of the change. Adjustments are often made to the countermeasures – and new ones developed – to assure the situation continues to improve.

As the process stabilizes, the team looks for ways to further reduce the likelihood of the problem recurring (by addressing other potential causes) or tackles another problem plaguing the process. Each adjustment leads to another fairly quick trip around the PDCA cycle that results in a more robust process and additional learning.

SO WHAT'S THE DIFFERENCE?

The major differences between PDCA and traditional thinking include:

Scientific Approach: A conscious effort to apply a scientific approach to improvement involves developing a hypothesis, testing the premise, formally evaluating whether or not the hypothesis was correct, and acting on the results. Although the traditional approach relies on some level of hypothesis testing, the check step makes it a more conscious effort within PDCA thinking that, when applied over-and-over again, results in developing a scientific thinking mindset throughout the organization;

Countermeasures: Within PDCA thinking, there is clear understanding that, although an action is an improvement, it is not necessarily a permanent solution;

Speed: Since the effort is not directed toward the perfect solution, improvements are made much more often and at a much quicker pace. PDCA is oriented toward a just do it mindset, where ideas are tested and implemented fairly quickly, even if the resulting improvement may be fairly small.

The quickest way to determine a group’s collective mindset is to observe how it addresses problems. If discussions tend to bog down as the team searches for permanent solutions, it is a safe bet that PDCA is not the norm. Also, ideas regularly “tested” and rejected in conference rooms rather than real situations is another sign of a solutions thinking mindset.


PDCA vs Solutions Thinking

The exhibit shows another difference between PDCA and solutions thinking. Ideas and improvements occur much more quickly with PDCA than with solutions thinking. Although each improvement is generally much smaller in scope than with solutions thinking, the rapid pace of improvements when applying PDCA results in far greater improvement of the process over time.

PDCA vs Solutions Thinking

Since processes tend to naturally deteriorate between improvement efforts, the longer the improvement cycle, the more deterioration that occurs. Because of this, the fewer number of improvement cycles, the slower overall pace of improvement that will occur over time.

THE LEARNING ORGANIZATION

Another advantage of PDCA thinking is the amount of learning that takes place about the process during each cycle. Because solutions thinking deploys fewer improvement cycles and focuses attention specifically on the problem at hand, less learning takes place about the overall process. The increased learning resulting from deploying PDCA throughout the organization further adds to the overall pace of improvement cycles.

Those who fail to recognize the true significance of PDCA often require a good deal of coaching, reflection, and experience with the cycle to truly understand why it is different and how it can benefit the organization. Without a certain level of transformation toward PDCA, however, the implementation of improvement methods like lean thinking or 6-sigma will be difficult, if not possible.