Taking Action eNewsletter

The Kaizen Decision

Issue Twenty-Four

Kaizen is both a philosophy of continuous improvement and a business management strategy. First embraced in Japan by companies such as Toyota and Kansai Electric, who learned the theory from W. Edwards Deming, Kaizen was popularized by Masaaki Imai in his book 'Kaizen: The Key To Japan's Competitive Success.' Kaizen is a Japanese compound word; the first part “Kai” means little, or on-going; and “Zen” meaning good, or, for the better.

As the economic crisis of the last decade deepened, companies were forced to make a decision: adapt with a “leaner”, more effective approach to the problems and challenges being faced by businesses across all industries, or face the alternative. Many turned to Kaizen, which loosely translated means many little changes for the better. Now, in 2011, the companies who decided to take the Kaizen path are reaping the benefits, with little or no capital expense.

Kaizen programs are implemented with four very broad interconnected objectives:

• Create a pleasant working environment, where employees are more likely to want to be productive. 

• Improve employee health (many of the gains in the field of ergonomics are a result Kaizen programs).

• Achieve savings through cost reduction.

• Attain breakthrough solutions to problems via process improvement and application of Kaizen techniques such as waste reduction, statistical techniques, and quality tools such as checksheets, Pareto analysis, affinity diagrams, cause-and-effect diagrams, and control charts.

Kaizen is unique because it is very much a holistic discipline, which only succeeds by the involvement of employees, whose desire to improve their workplace is paramount to success. Participation is required at all levels. At the strategic and management levels, several decisions must be weighed when considering a Kaizen implementation:

• Top management commitment to a permanent strategy of continuous improvement, and dedication of time to research and understand the requirements and implications of Kaizen. 

• Top management commitment to cross-functional objectives such as reducing the cost of quality and improving processes that affect multiple functions.

• Department or functional commitment to deploying implementation resources such as training, allotting time for Kaizen events, and follow-up activities to ensure that Kaizen gains are maintained. 

• Top management commitment to ensure that the mandate for change exists within personnel practices, especially in compensation, recognition and reward, and job design.

As you may have surmised by now, Kaizen places a heavy emphasis on process improvement. However, before continuous process improvement can take place, an effective and thorough assessment must be conducted to determine which processes contain the most costly wastes, and are therefore “low hanging fruit” for selection as Kaizen event candidates.

Kaizen leads to results, and in many cases immediate and lasting change. Involving employees who have intimate knowledge of systemic problems in solutions leads to higher levels of quality, productivity and customer satisfaction. When Kaizen is deployed for the first time, productivity increases of 30% to 50% are not uncommon.

Several of our case studies illustrate examples of how continuous improvement projects bring significant return on investment (ROI) to our clients. A link to our case studies is provided here:

http://www.thedougwilliamsgroup.com/ClientsAndResults/CaseStudies/

If you would like to learn more about Kaizen improvement methods or schedule a Kaizen event at your company, please contact me via email (doug@thedougwilliamsgroup.com) or phone (305-598-9880).

Thank you for your interest in our firm and Taking Action.