HI every one, what is kaizen effect. how we can use in our profession. thanks Regards Barkha
From India, Bhopal
4From India, Bhopal
Hi
Kaizen is a Japanese term meaning "Continuous Improvement".
Kaizen plays a vital role in the Quality Control.
The ultimate purpose of Kaizen is to improve the quality continuously by eliminating wastes in terms of time, money, rework, etc. It involves everyone from Manager level to worker level. The key aspect of KAIZEN is that it is an on-going, never-ending improvement process.
It is actually introduced by Masaaki Imai, who wrote the Management best-seller "Kaizen". The book was published in 14 languages and is very successful among the manufacturing industries.
Masaaki Imai also founded the "Kaizen Institute", a consulting firm for western manufacturers.
Regards
Elamurugu
From India, Madras
Kaizen is a Japanese term meaning "Continuous Improvement".
Kaizen plays a vital role in the Quality Control.
The ultimate purpose of Kaizen is to improve the quality continuously by eliminating wastes in terms of time, money, rework, etc. It involves everyone from Manager level to worker level. The key aspect of KAIZEN is that it is an on-going, never-ending improvement process.
It is actually introduced by Masaaki Imai, who wrote the Management best-seller "Kaizen". The book was published in 14 languages and is very successful among the manufacturing industries.
Masaaki Imai also founded the "Kaizen Institute", a consulting firm for western manufacturers.
Regards
Elamurugu
From India, Madras
Hi Barkha,
KAIZEN is a Japanese word meaning gradual and orderly, continuous improvement. Adopting KAIZEN involves the creation of a culture of sustained continuous improvement focusing on eliminating waste in all systems and processes of an organization.
There are two essential elements that make up KAIZEN :
* improvement/change for the better; and
* ongoing/continuity.
KAIZEN achieves its effects by working through people. All are expected to be involved. Managers, for example, are expected to spend about half their time on improving what they - and those for whom they are responsible - do.
KAIZEN recognises that improvements can be small or large. Many small improvements can make a big change - so KAIZEN works at a detailed level.
The principles/approach behind KAIZEN are :
1. Discard conventional fixed ideas.
2. Think of how to do it, not why it cannot be done.
3. Do not make excuses. Start by questioning current practices.
4. Do not seek perfection. Do it right away even if it will only achieve 50% of target.
5. If you make a mistake, correct it right away.
6. Throw wisdom at a problem, not money.
7. Ask 'WHY?" five times and seek root causes.
8. Seek the wisdom of ten people rather than the knowledge of one.
9. Don't ask workers to leave their brains at the factory gate.
KAIZEN is thus a (relatively) low cost, simple, team-based approach. Team are trained in the techniques and tools of KAIZEN. They then brainstorm improvement ideas and vote on them for priority action.
They then create an action/implementation plan which is submitted to management for approval.
Assuming it is approved, the team then sets about implementation (with professional help if appropriate). The team then meets weekly to review progress, identify/overcome barriers, celebrate successes, and document the resulting changed processes.
Likewise we can impliment the same in our organisation too.
Regards,
Amit Seth.
From India, Ahmadabad
KAIZEN is a Japanese word meaning gradual and orderly, continuous improvement. Adopting KAIZEN involves the creation of a culture of sustained continuous improvement focusing on eliminating waste in all systems and processes of an organization.
There are two essential elements that make up KAIZEN :
* improvement/change for the better; and
* ongoing/continuity.
KAIZEN achieves its effects by working through people. All are expected to be involved. Managers, for example, are expected to spend about half their time on improving what they - and those for whom they are responsible - do.
KAIZEN recognises that improvements can be small or large. Many small improvements can make a big change - so KAIZEN works at a detailed level.
The principles/approach behind KAIZEN are :
1. Discard conventional fixed ideas.
2. Think of how to do it, not why it cannot be done.
3. Do not make excuses. Start by questioning current practices.
4. Do not seek perfection. Do it right away even if it will only achieve 50% of target.
5. If you make a mistake, correct it right away.
6. Throw wisdom at a problem, not money.
7. Ask 'WHY?" five times and seek root causes.
8. Seek the wisdom of ten people rather than the knowledge of one.
9. Don't ask workers to leave their brains at the factory gate.
KAIZEN is thus a (relatively) low cost, simple, team-based approach. Team are trained in the techniques and tools of KAIZEN. They then brainstorm improvement ideas and vote on them for priority action.
They then create an action/implementation plan which is submitted to management for approval.
Assuming it is approved, the team then sets about implementation (with professional help if appropriate). The team then meets weekly to review progress, identify/overcome barriers, celebrate successes, and document the resulting changed processes.
Likewise we can impliment the same in our organisation too.
Regards,
Amit Seth.
From India, Ahmadabad
:D
Kaizen effect means, There is always chance to improve and so we have to work in the direction so as to improve on quality of the work in order to reduce the Time required, Cost, Rework efforts.
It is considered as CONTINUAL IMPROVEMENT TOOL.
Kaizen effect means, There is always chance to improve and so we have to work in the direction so as to improve on quality of the work in order to reduce the Time required, Cost, Rework efforts.
It is considered as CONTINUAL IMPROVEMENT TOOL.
:D
Kaizen effect means, There is always chance to improve and so we have to work in the direction so as to improve on quality of the work in order to reduce the Time required, Cost, Rework efforts.
It is considered as CONTINUAL IMPROVEMENT TOOL.
Jagadish S.
Kaizen effect means, There is always chance to improve and so we have to work in the direction so as to improve on quality of the work in order to reduce the Time required, Cost, Rework efforts.
It is considered as CONTINUAL IMPROVEMENT TOOL.
Jagadish S.
Hi friends, Thanks for replying, its really helpful for me & its really very good & easy language for understanding. Thanks to all of u Regards Barkha
From India, Bhopal
From India, Bhopal
Origins and Definition of Kaizen
In the U.S. kaizen is often synonymous with "Kaizen Blitz" or "Kaizen Event." Such events rapidly implement workcells, improve setups or streamline processes. However, a better Japanese word for this activity is kaikaku
In Japanese, the definition of Kaizen is "improvement" and particularly, "Continuous Improvement"-- slow, incremental but constant. Norman Bodek explains this and translates it as "Quick & Easy Kaizen".
Taiichi Ohno and Shigeo Shingo developed both kaizen versions at Toyota. They are important tools for Lean Manufacturing, the Toyota Production System (TPS), Just In Time (JIT) and other effective manufacturing strategies.
Large-Scale Vs. Small-Scale Improvement
Large scale improvement is attractive. It promises quantum jumps in productivity, quality and effectiveness. However, it is difficult to implement because it affects many areas, people and processes. The design must be near-perfect because failure courts disaster. The risks and difficulties work against large-scale improvements.
Small-scale improvements are easier and faster. The risks are low because they generally have limited effect. However, the accumulated effect is often greater than a single large improvement. The Kaizen Blitz is a localized, smaller scale improvement and Mini-Kaizen are very small-scale improvements.
The Kaizen Blitz
The Blitz or Event is a focused, intense, short-term project to improve a process. Substantial resources- Engineering, Maintenance, Cell Operators, and others are available for immediate deployment.
An event usually includes training followed by analysis, design, and re-arrangement of a product line or area. A consultant often orchestrates. The Event normally takes 2-10 days. The results are immediate, dramatic and satisfying.
Mini Kaizen
Before the recent popularity of the Blitz, kaizen meant "Continuous Improvement." This is the slow accumulation of many small developments in processes and quality that, over 50 years, has helped make Toyota the lowest cost and highest quality automobile company in the world. Let's call these improvements "Mini Kaizen."
Mini Kaizen is part of corporate culture. It requires both conscious and sub-conscious thinking about improvements day by day and minute by minute on the part of all employees. It also requires that these same employees possess the skills for this type of thinking.
The mini variation is far more difficult to keep up and takes much longer for results than a blitz. But, as Toyota has demonstrated,
Key Characteristics
Permanent method changes
Continuous flow of small ideas
Immediate, local implementation
The Quick & Easy Process
Here is the sequence of events for a Quick & Easy Kaizen:
An employee identifies a problem, waste, defect or something not working. He/she writes it down.
Employee later develops an improvement idea and goes to immediate supervisor.
Supervisor reviews it and encourages immediate action.
The idea is implemented.
The idea is written up on a simple form in less than three minutes.
Supervisor posts the form to stimulate others and recognize the accomplishment.
Quick and Easy Kaizen Benefits
Mini kaizen empowers employees, enriches the work experience and brings out the best in every person. It Improves quality, safety, cost structures, environments, throughput and customer service.
From India, Mumbai
In the U.S. kaizen is often synonymous with "Kaizen Blitz" or "Kaizen Event." Such events rapidly implement workcells, improve setups or streamline processes. However, a better Japanese word for this activity is kaikaku
In Japanese, the definition of Kaizen is "improvement" and particularly, "Continuous Improvement"-- slow, incremental but constant. Norman Bodek explains this and translates it as "Quick & Easy Kaizen".
Taiichi Ohno and Shigeo Shingo developed both kaizen versions at Toyota. They are important tools for Lean Manufacturing, the Toyota Production System (TPS), Just In Time (JIT) and other effective manufacturing strategies.
Large-Scale Vs. Small-Scale Improvement
Large scale improvement is attractive. It promises quantum jumps in productivity, quality and effectiveness. However, it is difficult to implement because it affects many areas, people and processes. The design must be near-perfect because failure courts disaster. The risks and difficulties work against large-scale improvements.
Small-scale improvements are easier and faster. The risks are low because they generally have limited effect. However, the accumulated effect is often greater than a single large improvement. The Kaizen Blitz is a localized, smaller scale improvement and Mini-Kaizen are very small-scale improvements.
The Kaizen Blitz
The Blitz or Event is a focused, intense, short-term project to improve a process. Substantial resources- Engineering, Maintenance, Cell Operators, and others are available for immediate deployment.
An event usually includes training followed by analysis, design, and re-arrangement of a product line or area. A consultant often orchestrates. The Event normally takes 2-10 days. The results are immediate, dramatic and satisfying.
Mini Kaizen
Before the recent popularity of the Blitz, kaizen meant "Continuous Improvement." This is the slow accumulation of many small developments in processes and quality that, over 50 years, has helped make Toyota the lowest cost and highest quality automobile company in the world. Let's call these improvements "Mini Kaizen."
Mini Kaizen is part of corporate culture. It requires both conscious and sub-conscious thinking about improvements day by day and minute by minute on the part of all employees. It also requires that these same employees possess the skills for this type of thinking.
The mini variation is far more difficult to keep up and takes much longer for results than a blitz. But, as Toyota has demonstrated,
Key Characteristics
Permanent method changes
Continuous flow of small ideas
Immediate, local implementation
The Quick & Easy Process
Here is the sequence of events for a Quick & Easy Kaizen:
An employee identifies a problem, waste, defect or something not working. He/she writes it down.
Employee later develops an improvement idea and goes to immediate supervisor.
Supervisor reviews it and encourages immediate action.
The idea is implemented.
The idea is written up on a simple form in less than three minutes.
Supervisor posts the form to stimulate others and recognize the accomplishment.
Quick and Easy Kaizen Benefits
Mini kaizen empowers employees, enriches the work experience and brings out the best in every person. It Improves quality, safety, cost structures, environments, throughput and customer service.
From India, Mumbai
Kaizen Activities in Industrial Systems
FUJITA, Seiichi. ?gKaizen?h Management (in Japanese language only). Sanno-daigaku Syuppan. Tokyo. 1996: pp. 15-31
Many managers expect their new employees to ?gbecome employees who do their work happily, quick, and neatly.?h But such abstract admonitions by managers go over the heads of the new employees who have little work experience and have just spent more than 10 years leading their lives as students.
Thoughts running through their heads might be ?gDon't get so uptight about all this. We can start this Kaizen stuff from the things around us.?h Indeed, the word ?gKaizen?h has a sacred sound to it, with which no stray thoughts will interfere. No one will object to improvement. The eagerness of the managers who think Kaizen is good is needed. ?gWe should start immediately,?h can be understood. Carrying out Kaizen is reasonable. The problem is how to get it started.
Some may say, ?gThis company must have been conducting Kaizen activities for a long time before I came. What are they trying to improve now? Is there still anything left to be improved??h or ?gKaizen is an activity for factories. It is unsuitable for a service industry like our company. What about agriculture?Cadministrative offices, or educational organizations? Do they engage in Kaizen??h
Such skeptical thoughts may be getting my essay off the wrong start. In order for the readers to understand the meaning and role of Kaizen, a shared recognition of the relative relationship between the jobs around us and Kaizen is necessary. In this preface, let me clarify how Kaizen activities are positioned in companies. Since Kaizen activities are applied to various industries, the definition of industries must first be clarified. Later the aims and methods with which Kaizen activities are carried out will be discussed.
1. Roles and Building Blocks of Industries
Work is done to achieve a goal. A company?fs mission is to offer, through work and jobs, goods and services of value to consumers. Businesses which produce value in this way are collectively called ?gIndustry.?h
To define the term ?gindustry?h, first bring to mind an industrial system, and then clarify the input to it and output from it. This is described by a rectangle (which is called a system or a black-box) with an incoming arrow called ?ginput?h and an outgoing arrow called ?goutput?h, as shown in Figure 1. This rectangle shows agriculture, manufacturing, or the service industry. What is input then? What is output? ?gIs a school a kind of industry??h is a frequent question from students. Some assert that it is an education industry, but it is true that it has a nature different from manufacturing or the service industry.
Let us isolate and collect all those factors common to all conceivable industries and discover the input and output of industries. What are the necessary inputs or outputs in order to implement the industrial system?fs original function: the creation of values? When we look at familiar industries, we can understand that the existence of a company in name only is of no value. Its existence only hinders other activities. Something must go into and come out of the system. And when people value and appreciate the goods produced by the system, then the corporate society will prosper.
Industrial System
Input
Output
Figure 1 Industrial Systemic Flow
Industrial System
Four M?fs
Goods or Services
Figure 2 Industrial Systemic Input and Output
Men, Machines,
Materials, Methods
Industrial Systems Input – Four Factors
When discussing input, the first factor that we should be raised is that it is indispensable in making up the form of general industries. First, the workers and then the staff who support the workers are needed. These managers, employees and capitalists will be collectively called ?gMen?h here. Next, we need the machines and facilities to produce the goods, and to offer services we will need the computers, electric instruments, and cars. These we will refer to as ?gMachines.?h Since it is the Men and Machines which produce the goods and offer the services, we will place these factors on the side of work performance. These are entities of production and are called the ?gwork nucleus.?h On the other hand, physical matter which is to be transformed be or in the work nucleus is necessary. The ingredients and materials correspond to this. Thus, Materials are identified as the third factor. Those Materials which are handled with be work nuclei are called ?gworked objects.?h
Here we have three factors: Men, Machines and Materials. Imagine you are in the kitchen, in front of all the pots, pans, and ingredients. Even if you are told, ?gPlease start,?h you do not have any idea where to start. Therefore, one more indispensable factor in needed: Methods. A manual (work instruction sheet) which shows the procedures by which the ingredients can become transformed into ?gGoods?h is needed.
Recently, some scholars add ?genergy?h and ?ginformation?h to this list of necessary factors. If we are looking at specific industries or expanding our system parameters from industry to society, those factors may be included. Here, however, I will use ?gMen, Machines, Materials, Methods?h as the input to industrial systems. Since by chance all of them start with ?gM?h, they will be termed the ?g4M Input Factors?h of the industrial system.
The next area for our consideration is the output of the industrial systems. This can be considered to be the goods and services offered to consumers. Four input factors interact within the system and produce the goods and services which are desired by the consumers. The function of the system, as shown in Figure 2, can be described as: ?gwork nuclei?h acting upon ?gworked objects?h to produce goods and services desired by people.
In short, the function of the industrial system exists in improvement of values and creation of added value.
All Industries Have Inputs and Outputs
Let us look at several industrial activities, taking note of the inputs and outputs of the respective industrial systems as shown in Figure. 2. For example, manufacturers are comparatively easy to understand in this sense. Raw materials are gradually transformed into finished goods through the stages of processing. The work nuclei, that is, the facilities, machines, and the workers which are involved in the activities both directly and indirectly, enable a smooth flow of goods. At manufacturers such as the auto and the steel industries, the flow of goods can be seen directly and the input and output are clearly identified.
How well does our model hold for primary industry such as agriculture or fishery? In agriculture, values are improved by sowing seeds and growing crops. Fishery industry delivers the fish caught off the coast or from deep seas to customers. Of course, we can grow plants or catch fish in the sea by ourselves, but we value the professionals who have special facilities to deliver these goods to consumers. The simplest example is the transportation industry. They directly transport things which are hard for individual consumers to carry to their destinations. Recently, frozen foods have proven convenient to consumers. In this case, the value has been improved by heeling the vegetables and fruits, keeping them in freezer facilities, and offering them to consumers during the off-season.
The information industry collects the detailed data scattered in any number of places and offers it at just the right time as the processed information desired by customers. Since the information provided enhances the convenience of people?fs lives and gives them pleasure, the information industry has established a firm position.
Finally, let us look at the education industry. Schools provide teachers and facilities for education. The students who enter the schools develop through the original methods at each school, and then graduate from the school. We might say that education in the school aims to improve the value of the students. In this meaning, the education industry is just the same as the other industries as far the input, output, and functions of the system. Since the worked object is a little bit different from other industries--students (human beings), not physical objects--, it seems slightly peculiar. Viewed as industrial systems, hospitals or amusement parks are the same as schools.
2. Changes and Provision of Value in Goods and Services
The function of industrial systems is that ?gwork nuclei?h act upon ?gworked objects?h to produce the output: goods and services. The important point here is the improvement of the value, and the finished goods become mere waste unless the consumers value the output. For example, an object assembled from small parts, which makes a sound, emits light, and moves about, will attract people?fs attention and people will buy them. In contrast, there are also systems which produce value by breaking up goods. Processing chicken or turkey into meat, and the dismantling of building are examples of these systems.
No matter whether the function of the system is assembling or dismantling, there is no meaning to the existence of a system unless the output is valued by people. Offering goods and services with value is the objective of industrial systems.
Provide Consumers with Goods of Acknowledged Value
Exactly what people will find valuable will vary greatly from person to person. Therefore, industries must find those people who are seeking out their output and develop desirable output by uncovering the Wants and Needs of those people. The tastes of the consumers will differ over time and age grouping. Hence, there are very few goods and services which have kept the same style of output for more than one decade. If industries do not try to grasp changes in consumer tastes as soon as possible and give the information on the changes to the system as feedback, they will end up providing people with outdated goods and services, and it will eventually lead to the extinction of the system.
Even when certain goods have sold well in the past, or certain services were welcomed by consumers, the time will come when these will became outdated. Industries hope that their products will continue to sell well forever is understandable, but discovering the best timing for product changes is advantageous, since it is the fate of every product to be obsolete someday. Industries which sell their output directly to the consumers can discover the turning point in popularity using measurements such as sales volume. However, for the producers of goods and services, it is possible to increase profits even when sales volume decreases, by making the goods at lower cost.
Therefore, it would be better to keep an eye on control standards which are more basic than the measurements of sales volumes or profits during the process of creating values. If such standards are well controlled, it should be possible to set standards that meet the demands of not only consumers but also producers. At present, Q(Quality), C(Cost), and D(Delivery) are considered to be those control standards. It is under the concept that goods of high quality, which satisfy consumers, should be provided with lower costs when required by consumers.
Some companies have established new control standards such as P(Production amount), S(Safety), and M(Morale) in addition to QCD. But setting up more control standards does not guarantee that having all those standards will be helpful. How are we to measure quality or morale? Even though we understand ?gquality is the degree of consumer satisfaction,?h we cannot ask the opinions of all the consumers. Thus, companies set a number of alternative standards. For example, they may try to guess the degree of customer satisfaction using the ratio of goods returned, or the percentage of defects.
3. Improving Output through Kaizen Activities
I have emphasized that Quality, Cost, and Delivery play significant roles as control standards. The role of the manager is to clarify the desirable figures for the QCD standards, grasp the desirable QCD for their goods and services, and always determine if they are operating under truly favorable conditions. If the QCD is determined to be a problem, Kaizen activities to solve the problem will be enacted within the system. Feedback corresponds to the Kaizen activities arising from the output going back into the system, as shown in Figure 3.
Industrial System
Four M?fs
Q, C, D
Figure 3 Industrial Systemic Input and Output
Men, Machines,
Materials, Methods
Kaizen Activities
If, for example, in contrast to the functions which consumers want, the goods and services produced by our company do not reach those standards, then an order is quickly given to improve the ways in which we do our work. Kaizen activities are such breakthroughs: changing the status quo and coming up with new ideas for producing the desired output.
This flow of feedback has so far contributed greatly to the development of Japanese companies. The wants and needs of the consumers were thoroughly pursued, the weight of the company was thrown into cost reductions, and an attempt was made to provide goods and services to consumers in as timely a way as possible. This combination of activities has underpinned the basis of Japanese companies in the post-war period. One good example is the manufacturers?f efforts to develop the video camera. Until the mid 80?fs, people used to follow their children carrying a big camera with a battery pack. In the mid 90?fs, video cameras were made lighter and smaller, to the point of being smaller than the palm of your hand. We would not be able to find any great change if the models typical of any one year were compared, but a comparison between today?fs products and those of ten years ago clearly shows the superiority and attractiveness of today?fs products. The old saying is little and many makes a pile, and we are astonished at the developments in technology.
When we look at such familiar commodities such as the calculator, cameras, and all those desk-top items bought in the stationary department, we can find a number of changes in the forms of the products. As for the service industry, in terms of every aspect of QCD, it is also clear that the services offered today are totally different from those of ten years ago.
4. The First Step in Kaizen Activities is Breaking Out of the Status Quo
All activity needs the power to draw people toward that activity. Since Kaizen is an activity which produces valuable output by changing the ways people work, it needs power to draw people to itself. It is the recognition of problems present in the status quo that gives people the willingness to change. A manager who is completely satisfied with his company will never consider trying Kaizen activities. Negating the current situation requires a vision of a desirable future to back it up. Strong recognition of a desirable status gives power to any breakthroughs changing the status quo. Kaizen activities in industrial systems involve feedback from the output of the system. Strong Kaizen activities are expected when there is any complaint toward the QCD of the output. This is the point of a growing awareness of the problem.
Now, let me define the word ?gproblem?h as the gap between ?gthe status as it should be?h and ?gthe current status.?h For example, if it is found that the consumers hope to get services more quickly than is the current practice of a company, it can be said that the problem is clearly recognized. The feeling that the situation needs to be changed in order to solve the problem is the first step in Kaizen. Kaizen is an activity aimed at changing the current status in order to solve problems.
Since the business environment is always in a state of flux, some might think that ?gthe status as it should be?h will approach the ?greality?h simply as time goes by. But such a way of thinking is quite negative. It is just like a bear in zoo, dreaming of running on a vast plain. In a positive way, we must make ?greality?h come closer to ?gthe status as it should be,?h and it is more likely to be achieved. For Kaizen activities to succeed in solving problems, it is required that we take positive action toward achieving breakthroughs to change the status quo.
As environment changes, ?gthe status as it should be?h which we have targeted will also change from moment to moment. Thus, as we spend some time with Kaizen activities and achieving that status, the status itself may already have been transformed. Therefore, Kaizen activities are pursuing a status which continues to move. Kaizen activities have a tendency to continue forever.
5. Current Status Breakthroughs and Standards Maintenance
Standards Are the Documentation of Procedures
While breakthroughs in the current status are said to be necessary, standards are set by companies, and workers are instructed to comply with them. Do we continue to observe standards? Or should we ignore them as we seek breakthroughs? Requiring two contradictory things at the same time seems unreasonable. Rules and standards are necessary for the performance of company work. These are stipulations agreed to by the workers. To be precise, standards are what establish authority and responsibility.
For instance, suppose that there are work standards and procedures listed, ranging from pouring coffee into cups to serving clients. This is a transfer of authority in work. No mistake will be made if the procedures are followed. The description offers the most desirable goods and services for the company at the moment. If someone makes a mistake, the one who set up the standards bears the responsibility.
Stipulations or standards are manuals to clarify the most desirable procedures to accomplish work based on the status quo at that company. In an organization, some actually perform the tasks and others supervise them. Based on the work standards prepared by managers, the workers perform their work tasks. It is easy for the workers to do their work, since the procedures even for cases involving any trouble is described in them.
Standards Change as Time Passes
If you think ?gI am behind in my work today,?h you think that you are behind as compared to the ?gappropriate status according to the work standards.?h Is there any problem? If any problem exists, Kaizen is immediately needed.
If the work situation is uneventful and lacking any change, you may do your work according to the standards. Every day the same products are made, no one is absent from work, there is no change in temperatures... Under such conditions, workers do their work in practiced manner without paying attention to the work standards. However, there is no company that does not face changes. Business conditions fluctuate, and workers are sometimes absent from the work. We have both hot days and cold days. Machines are suddenly out of order and people make mistakes. When we cannot adapt to these changes under the existing standards, the standards need to be revised. Standards always need revision in response to changes.
In our home when my son was a child, his handkerchiefs and tissue packets were kept in the second drawer from the bottom of our bureau, and he had a habit of looking there before he went to school. However, as he grew up, the second drawer from the bottom became too low for him. We did not hesitate to make the upper drawer the one where we kept his handkerchiefs and tissue packets. Standards are procedures to make work easier. However, standards tend to change over time. Changing the standards is another way of describing Kaizen activities.
6. Classification of Breakthroughs in the Status Quo
There are several types of breakthroughs in the current situation. A small idea may improve the flow of work in one case. In another case, the accumulation of basic experiments, studies, trials, and errors may finally yield an output desired by consumers. Here, breakthrough activities in the status quo are classified into three categories:
Shohen (Small change): Activities which improve work methods by changing the status quo with one individual's effort on a small scale.
Chuhen (Medium change): Activities which devise new methods by taking designated steps to change the status quo on a medium scale with efforts by group members.
Taihen (Big change): Activities which change the status quo greatly, revolutionary methods based on principles differing from those used previously, dramatically producing wide-spread effects.
(Note) Shohen, Chuhen, Taihen are Japanese words which mean small, medium and big changes respectively
Shohen is an activity on a quite small scale and attempts to simplify work methods. As an activity, it is an attempt to make simple changes in work methodology. By discovering alternative proposals to achieve set goals, it attempts to solve the problems by choosing a better alternative than is employed at present. Although the economic effects gained from Shohen may be small, the accumulation of small Kaizen change activities will affect repetitive jobs cumulatively in a large way. Shohen can be applied to our daily lives or at home, and the activities can be joined by everyone. Installing a rolling shelf in the kitchen to make taking small things out of the cupboard easier, and putting a mesh bag inside the sink drain opening to enable the removal of garbage all at once are examples of what many housewives do. There are similar Kaizen activities in companies, and some are introduced in case study literature. In this paper, ?gKaizen?h is defined as ?gShohen?h and the word ?gShohen?h is replaced by ?gKaizen.?h
QC and VE Kaizen Activities are Chuhen
Some companies try to implement Kaizen activities from a more sophisticated standpoint. For example, Kaizen activities conducted by QC Circles and VE, as well as various other innovative methods, are an attempt at this scale of problem-solving. These are termed ?gChuhen.?h
The common theme of Chuhen activities is the certainty that ideas for making improvements in the status quo can be discovered if such an alternative idea is sought through fixed procedures. Techniques such as QC or VE can be employed to lead to an improved and effective idea.
In many cases, the Kaizen activities in the Chuhen range will bring larger economic effects than those of Shohen. Compared to Shohen, also, Chuhen sometimes has higher costs and may not be amenable to individual efforts. Actually, many companies develop QC and VE activities under a company-wide campaign by setting up a special section to promote them. People who have considerable experience and the authority to lead and develop the campaign with many other workers may be called to work in these sections. Companies give authority to these people in charge of promoting the campaign, and they bear the responsibility for the campaign. Unlike Shohen with its individual participation, Chuhen, or activities by an organized group, has greater motivational power, and the range of the objects of its study is far broader. However, these activities are also supported by individual workers. If any individual, as a constituent of the organization, lacks awareness of the issues, the effect of the activities by the group is lessened.
Taihen has the Large Effects of a Jet Engine
Among all the various Kaizen activities, the biggest changes are expected to be made by those with the Taihen ranking. The emergence of the jet engine ushered in the age of jet airplanes and interrupted the development of conventional propeller planes. Liquid crystal, penicillin, and atomic bomb technology are all typical examples of technological innovation. When a method which is fundamentally different from previous methods is used and far larger effects are brought, what emerges is called a ?gProduct of Innovation.?h Taihen refers to changes at such a level.
Some of these changes are produced by the accumulation of precise basic science studies, and others are produced as the by-products of studies with separate original goals. Unlike Shohen which is on an individual basis, Taihen are produced after repetitive trial and error. Even though a product brought about by Taihen will not fully demonstrate its effect at first, it can later be revised and changed into a product with sophisticated functions. For example, the principle of the turboengine was improved and later used in automobile engines. The principles of liquid crystals are now applied to calculators and computer display screens. In this context, it can be said that products of innovation are transformed into goods with a higher value by applying Shohen or Chuhen in the later stages. Shohen and Chuhen play a role in the final functions to complete Taihen.
Case studies of Shohen, Chuhen and Taihen
One day a fruit juice producer received this complaint from a consumer: the juice was not pleasant tasting because the fruit skins were mixed into the juice. The producer immediately took action and began by investigating the peeling work of hits in stock. Then they began Kaizen activities on the peelers. After comparing various peelers on the market, they decided to adopt a tool different from the existing types, and commensurate effects were obtained. This is a case of Shohen, the small Kaizen improvements.
Some time later, a worker by chance came up with another idea to improve the process. If juice is pressed out of the whole fruit parts, including the skins, and later filtered, the skins can be removed. Moreover, the work of peeling will be unnecessary. This can be called Kaizen on a medium scale, in other words, Chuhen. Indeed, Kaizen applied to processes can bring larger economic effects than Kaizen applied to tools and machines.
For this company to expect further, larger Kaizen is not impossible. For instance, thanks to the progress of biotechnology the cultivation of skinless fruit may become possible. With such skinless fruit, even the equipment to filter out the skins would become unnecessary. Using new raw materials like this is close to revolutionary innovation (Taihen).
Revolutionary innovation is a change which brings large effects through the use of methods fundamentally different from existing measures. Such change cannot be achieved by simply returning the feedback into the industrial systems as shown in Figure 3. Revolutionary innovation can be said to be changes in the input to the industrial systems. If an input differing fundamentally from existing ones (any input changes to the Men, Machines, Materials and Methods) emerges and is fed into the industrial systems, it can be called ?gRevolutionary Innovation.?h
For example, laser processing instruments utilizing laser beams and thin beams are new Methods within the industrial systems, and so can be called revolutionary technological innovation. Some might argue that to be precise; the invention of laser beams is an innovation and its application to machine processing should be ranked as a simple diversion (Chuhen). But if we are discussing industrial systems, I believe any changes in input can be called ?gTaihen.?h Some say that quality control, a type of control technology, is a change in Methods, so it can also be called ?grevolutionary (Taihen).?h
Shohen is Kaizen to change work methods so that workers can work more easily in the industrial systems. It is called ?gSoi?h (an ingenious expedient) in Japanese. Chuhen refers to activities engaging in organizational efforts toward Kaizen through a clear realization of QCD problems. Meanwhile, Taihen is the improvement of the inputs themselves. If a superior input is employed, the output will also change. With support from Shohen and Chuhen activities, even greater Kaizen effects can be expected.
7. Productivity Improvement and Kaizen Activities
Improving productivity does not mean increasing the volume of production. When a certain amount of output is produced with less input, it is said that ?gproductivity has improved.?h For improvements in productivity, work methods must be changed and Kaizen activities will lead to those changes. Therefore, the productivity improvement campaign is the same thing as the activation of Kaizen activities in companies. We must understand that ?gproductivity?h and ?gproduction volume?h are totally different terms and that Kaizen means ways to improve productivity.
The Mechanism for Productivity Improvement
Productivity as an index of efficiency is generally represented as a fraction obtained through division: output divided by input. In many cases, output, the fraction numerator, is shown as the amount of added value (or amount of production) to the finished products or services, and input, the fraction denominator, is shown as the number of employees (Men) or amount of Materials to be used. Therefore, improving productivity means increasing the total value of this fraction.
To increase the value of this fraction, there are basically two methods. They are to increase the numerator, or to decrease the denominator. In order to increase the amount of added value, the numerator, you may increase the amount of goods and services to be produced. But this will require that all goods and services produced will be valued by the consumers. You cad never increase the amount of added value if you increase the production volume of goods which do not sell well or if you provide unnecessary services. In contrast, if the numerator is controlled to a fixed number and the values of the denominator are decreased, it will improve the productivity with certainty. Producing the necessary amount of added value with less manpower or fewer raw materials will bring about an improvement in productivity. But in reality, general companies procure men and machines and materials by assuming a necessary amount of goods and services in advance. So in general, the numerators are fixed. We must consider that improving productivity will mean lowering the value of the denominators, assuming that the targeted value of the numerators is fixed.
While Japan was experiencing high economic growth, any product sold well. In an age when the demand for goods and services was on an upward trend, the improvement of profits could be targeted even through reckless production and furious sales. If more sophisticated Kaizen activities had been devised and carried out, there would have been chances for even greater profits.
8. Kaizen Activities for Increased Profits
Four Measures for Increased Profits
When companies aim to improve their profits, the following four methods are effective:
1. Raise unit prices for the sales of goods and services
2. Lower unit prices for the purchase of materials: input
3. Increase the amount of output
4. Produce goods and services with lower costs through Kaizen activities
The first method, raising unit sales prices, often brings many difficulties. This is because products on the market are already priced at their market prices, and the consumers will buy products and services from the competition if unit sales prices are raised. It is clear that a price increase will result in a loss of a certain share of the market. Other than the cases where the product enjoys a company monopoly of the market, or there is some understandable motivation such as the oil shock, it is difficult to carry out price increases.
The second method, lowering the purchase prices of materials, will earn charges of difficulty from those in charge of purchasing because they are always putting great effort into buying materials as cheaply as possible.
The third method, increasing the amount of output by increasing men and facilities, is indeed a good idea. If the goods and services are bought by consumers, the company profits will increase. However, if surplus output remain as stock, or are disposed of as waste, profits will not increase. Losses requiring extra materials or manpower will result instead.
The Effects of Kaizen Activities
The most practical measures for improving profits, which are carried out successfully in many companies, are found in the fourth method, Kaizen activities. Not all Kaizen activities can bring about cost reductions, but in many cases, cost-cutting is achieved if the activities target the elimination of waste. It is true that among those four measures, the economic effects of Kaizen activities are comparatively small when compared to the other three measures. Kaizen activities are characterized as: little and many makes a pile.
Suppose that a material bought at the price of \20 is processed, making the unit cost including variable costs \40 in total. The company sells the product for \50 each and earns added value of \10. Now, if they can sell only one unit of product a day, their total amount of added value will be \10. If they hope to increase the total amount of added value to \20, what should they do?
Let's examine the four measures for an increase in profits. First, they may increase the sales price from \50 to \60. Second, if they lower the materials cost by \10 and can buy the same material for \10, the added value would become \20. Third, they may sell two product units a day through sales promotion. In reality, however, it is tough for a company which is grasping for sales of one a day to come up with any ideas to sell two.
The fourth measure is cost reduction through Kaizen activities. Now, the purchase price of the material is \20, with processing and including variable costs, the unit cost comes to \40 total. If this can be lowered to \30, the added value will be \20. With the same sales volume, one product unit a day, and the same sales price, \50, and the same materials cost, \20, the added value of \20 can be achieved.
In this example, the processing cost of \20 is added to materials cost of \20, and the total cost including variable costs becomes \40 per unit. Lowering the processing cost of \20 is the goal of the Kaizen activities here. Nothing but Kaizen activities can produce profits through their own efforts, independent of the competitors, materials suppliers, and consumers. Actually, many companies, especially many manufacturers, aim to improve profits through various means such as the improvement of work-sites, the improvement of work procedures, the improvement of business practices, the improvement in the rate of defects, and the improvement of facilities. The first thing many companies should start in order to increase profits is positive Kaizen activities.
From India, Mumbai
FUJITA, Seiichi. ?gKaizen?h Management (in Japanese language only). Sanno-daigaku Syuppan. Tokyo. 1996: pp. 15-31
Many managers expect their new employees to ?gbecome employees who do their work happily, quick, and neatly.?h But such abstract admonitions by managers go over the heads of the new employees who have little work experience and have just spent more than 10 years leading their lives as students.
Thoughts running through their heads might be ?gDon't get so uptight about all this. We can start this Kaizen stuff from the things around us.?h Indeed, the word ?gKaizen?h has a sacred sound to it, with which no stray thoughts will interfere. No one will object to improvement. The eagerness of the managers who think Kaizen is good is needed. ?gWe should start immediately,?h can be understood. Carrying out Kaizen is reasonable. The problem is how to get it started.
Some may say, ?gThis company must have been conducting Kaizen activities for a long time before I came. What are they trying to improve now? Is there still anything left to be improved??h or ?gKaizen is an activity for factories. It is unsuitable for a service industry like our company. What about agriculture?Cadministrative offices, or educational organizations? Do they engage in Kaizen??h
Such skeptical thoughts may be getting my essay off the wrong start. In order for the readers to understand the meaning and role of Kaizen, a shared recognition of the relative relationship between the jobs around us and Kaizen is necessary. In this preface, let me clarify how Kaizen activities are positioned in companies. Since Kaizen activities are applied to various industries, the definition of industries must first be clarified. Later the aims and methods with which Kaizen activities are carried out will be discussed.
1. Roles and Building Blocks of Industries
Work is done to achieve a goal. A company?fs mission is to offer, through work and jobs, goods and services of value to consumers. Businesses which produce value in this way are collectively called ?gIndustry.?h
To define the term ?gindustry?h, first bring to mind an industrial system, and then clarify the input to it and output from it. This is described by a rectangle (which is called a system or a black-box) with an incoming arrow called ?ginput?h and an outgoing arrow called ?goutput?h, as shown in Figure 1. This rectangle shows agriculture, manufacturing, or the service industry. What is input then? What is output? ?gIs a school a kind of industry??h is a frequent question from students. Some assert that it is an education industry, but it is true that it has a nature different from manufacturing or the service industry.
Let us isolate and collect all those factors common to all conceivable industries and discover the input and output of industries. What are the necessary inputs or outputs in order to implement the industrial system?fs original function: the creation of values? When we look at familiar industries, we can understand that the existence of a company in name only is of no value. Its existence only hinders other activities. Something must go into and come out of the system. And when people value and appreciate the goods produced by the system, then the corporate society will prosper.
Industrial System
Input
Output
Figure 1 Industrial Systemic Flow
Industrial System
Four M?fs
Goods or Services
Figure 2 Industrial Systemic Input and Output
Men, Machines,
Materials, Methods
Industrial Systems Input – Four Factors
When discussing input, the first factor that we should be raised is that it is indispensable in making up the form of general industries. First, the workers and then the staff who support the workers are needed. These managers, employees and capitalists will be collectively called ?gMen?h here. Next, we need the machines and facilities to produce the goods, and to offer services we will need the computers, electric instruments, and cars. These we will refer to as ?gMachines.?h Since it is the Men and Machines which produce the goods and offer the services, we will place these factors on the side of work performance. These are entities of production and are called the ?gwork nucleus.?h On the other hand, physical matter which is to be transformed be or in the work nucleus is necessary. The ingredients and materials correspond to this. Thus, Materials are identified as the third factor. Those Materials which are handled with be work nuclei are called ?gworked objects.?h
Here we have three factors: Men, Machines and Materials. Imagine you are in the kitchen, in front of all the pots, pans, and ingredients. Even if you are told, ?gPlease start,?h you do not have any idea where to start. Therefore, one more indispensable factor in needed: Methods. A manual (work instruction sheet) which shows the procedures by which the ingredients can become transformed into ?gGoods?h is needed.
Recently, some scholars add ?genergy?h and ?ginformation?h to this list of necessary factors. If we are looking at specific industries or expanding our system parameters from industry to society, those factors may be included. Here, however, I will use ?gMen, Machines, Materials, Methods?h as the input to industrial systems. Since by chance all of them start with ?gM?h, they will be termed the ?g4M Input Factors?h of the industrial system.
The next area for our consideration is the output of the industrial systems. This can be considered to be the goods and services offered to consumers. Four input factors interact within the system and produce the goods and services which are desired by the consumers. The function of the system, as shown in Figure 2, can be described as: ?gwork nuclei?h acting upon ?gworked objects?h to produce goods and services desired by people.
In short, the function of the industrial system exists in improvement of values and creation of added value.
All Industries Have Inputs and Outputs
Let us look at several industrial activities, taking note of the inputs and outputs of the respective industrial systems as shown in Figure. 2. For example, manufacturers are comparatively easy to understand in this sense. Raw materials are gradually transformed into finished goods through the stages of processing. The work nuclei, that is, the facilities, machines, and the workers which are involved in the activities both directly and indirectly, enable a smooth flow of goods. At manufacturers such as the auto and the steel industries, the flow of goods can be seen directly and the input and output are clearly identified.
How well does our model hold for primary industry such as agriculture or fishery? In agriculture, values are improved by sowing seeds and growing crops. Fishery industry delivers the fish caught off the coast or from deep seas to customers. Of course, we can grow plants or catch fish in the sea by ourselves, but we value the professionals who have special facilities to deliver these goods to consumers. The simplest example is the transportation industry. They directly transport things which are hard for individual consumers to carry to their destinations. Recently, frozen foods have proven convenient to consumers. In this case, the value has been improved by heeling the vegetables and fruits, keeping them in freezer facilities, and offering them to consumers during the off-season.
The information industry collects the detailed data scattered in any number of places and offers it at just the right time as the processed information desired by customers. Since the information provided enhances the convenience of people?fs lives and gives them pleasure, the information industry has established a firm position.
Finally, let us look at the education industry. Schools provide teachers and facilities for education. The students who enter the schools develop through the original methods at each school, and then graduate from the school. We might say that education in the school aims to improve the value of the students. In this meaning, the education industry is just the same as the other industries as far the input, output, and functions of the system. Since the worked object is a little bit different from other industries--students (human beings), not physical objects--, it seems slightly peculiar. Viewed as industrial systems, hospitals or amusement parks are the same as schools.
2. Changes and Provision of Value in Goods and Services
The function of industrial systems is that ?gwork nuclei?h act upon ?gworked objects?h to produce the output: goods and services. The important point here is the improvement of the value, and the finished goods become mere waste unless the consumers value the output. For example, an object assembled from small parts, which makes a sound, emits light, and moves about, will attract people?fs attention and people will buy them. In contrast, there are also systems which produce value by breaking up goods. Processing chicken or turkey into meat, and the dismantling of building are examples of these systems.
No matter whether the function of the system is assembling or dismantling, there is no meaning to the existence of a system unless the output is valued by people. Offering goods and services with value is the objective of industrial systems.
Provide Consumers with Goods of Acknowledged Value
Exactly what people will find valuable will vary greatly from person to person. Therefore, industries must find those people who are seeking out their output and develop desirable output by uncovering the Wants and Needs of those people. The tastes of the consumers will differ over time and age grouping. Hence, there are very few goods and services which have kept the same style of output for more than one decade. If industries do not try to grasp changes in consumer tastes as soon as possible and give the information on the changes to the system as feedback, they will end up providing people with outdated goods and services, and it will eventually lead to the extinction of the system.
Even when certain goods have sold well in the past, or certain services were welcomed by consumers, the time will come when these will became outdated. Industries hope that their products will continue to sell well forever is understandable, but discovering the best timing for product changes is advantageous, since it is the fate of every product to be obsolete someday. Industries which sell their output directly to the consumers can discover the turning point in popularity using measurements such as sales volume. However, for the producers of goods and services, it is possible to increase profits even when sales volume decreases, by making the goods at lower cost.
Therefore, it would be better to keep an eye on control standards which are more basic than the measurements of sales volumes or profits during the process of creating values. If such standards are well controlled, it should be possible to set standards that meet the demands of not only consumers but also producers. At present, Q(Quality), C(Cost), and D(Delivery) are considered to be those control standards. It is under the concept that goods of high quality, which satisfy consumers, should be provided with lower costs when required by consumers.
Some companies have established new control standards such as P(Production amount), S(Safety), and M(Morale) in addition to QCD. But setting up more control standards does not guarantee that having all those standards will be helpful. How are we to measure quality or morale? Even though we understand ?gquality is the degree of consumer satisfaction,?h we cannot ask the opinions of all the consumers. Thus, companies set a number of alternative standards. For example, they may try to guess the degree of customer satisfaction using the ratio of goods returned, or the percentage of defects.
3. Improving Output through Kaizen Activities
I have emphasized that Quality, Cost, and Delivery play significant roles as control standards. The role of the manager is to clarify the desirable figures for the QCD standards, grasp the desirable QCD for their goods and services, and always determine if they are operating under truly favorable conditions. If the QCD is determined to be a problem, Kaizen activities to solve the problem will be enacted within the system. Feedback corresponds to the Kaizen activities arising from the output going back into the system, as shown in Figure 3.
Industrial System
Four M?fs
Q, C, D
Figure 3 Industrial Systemic Input and Output
Men, Machines,
Materials, Methods
Kaizen Activities
If, for example, in contrast to the functions which consumers want, the goods and services produced by our company do not reach those standards, then an order is quickly given to improve the ways in which we do our work. Kaizen activities are such breakthroughs: changing the status quo and coming up with new ideas for producing the desired output.
This flow of feedback has so far contributed greatly to the development of Japanese companies. The wants and needs of the consumers were thoroughly pursued, the weight of the company was thrown into cost reductions, and an attempt was made to provide goods and services to consumers in as timely a way as possible. This combination of activities has underpinned the basis of Japanese companies in the post-war period. One good example is the manufacturers?f efforts to develop the video camera. Until the mid 80?fs, people used to follow their children carrying a big camera with a battery pack. In the mid 90?fs, video cameras were made lighter and smaller, to the point of being smaller than the palm of your hand. We would not be able to find any great change if the models typical of any one year were compared, but a comparison between today?fs products and those of ten years ago clearly shows the superiority and attractiveness of today?fs products. The old saying is little and many makes a pile, and we are astonished at the developments in technology.
When we look at such familiar commodities such as the calculator, cameras, and all those desk-top items bought in the stationary department, we can find a number of changes in the forms of the products. As for the service industry, in terms of every aspect of QCD, it is also clear that the services offered today are totally different from those of ten years ago.
4. The First Step in Kaizen Activities is Breaking Out of the Status Quo
All activity needs the power to draw people toward that activity. Since Kaizen is an activity which produces valuable output by changing the ways people work, it needs power to draw people to itself. It is the recognition of problems present in the status quo that gives people the willingness to change. A manager who is completely satisfied with his company will never consider trying Kaizen activities. Negating the current situation requires a vision of a desirable future to back it up. Strong recognition of a desirable status gives power to any breakthroughs changing the status quo. Kaizen activities in industrial systems involve feedback from the output of the system. Strong Kaizen activities are expected when there is any complaint toward the QCD of the output. This is the point of a growing awareness of the problem.
Now, let me define the word ?gproblem?h as the gap between ?gthe status as it should be?h and ?gthe current status.?h For example, if it is found that the consumers hope to get services more quickly than is the current practice of a company, it can be said that the problem is clearly recognized. The feeling that the situation needs to be changed in order to solve the problem is the first step in Kaizen. Kaizen is an activity aimed at changing the current status in order to solve problems.
Since the business environment is always in a state of flux, some might think that ?gthe status as it should be?h will approach the ?greality?h simply as time goes by. But such a way of thinking is quite negative. It is just like a bear in zoo, dreaming of running on a vast plain. In a positive way, we must make ?greality?h come closer to ?gthe status as it should be,?h and it is more likely to be achieved. For Kaizen activities to succeed in solving problems, it is required that we take positive action toward achieving breakthroughs to change the status quo.
As environment changes, ?gthe status as it should be?h which we have targeted will also change from moment to moment. Thus, as we spend some time with Kaizen activities and achieving that status, the status itself may already have been transformed. Therefore, Kaizen activities are pursuing a status which continues to move. Kaizen activities have a tendency to continue forever.
5. Current Status Breakthroughs and Standards Maintenance
Standards Are the Documentation of Procedures
While breakthroughs in the current status are said to be necessary, standards are set by companies, and workers are instructed to comply with them. Do we continue to observe standards? Or should we ignore them as we seek breakthroughs? Requiring two contradictory things at the same time seems unreasonable. Rules and standards are necessary for the performance of company work. These are stipulations agreed to by the workers. To be precise, standards are what establish authority and responsibility.
For instance, suppose that there are work standards and procedures listed, ranging from pouring coffee into cups to serving clients. This is a transfer of authority in work. No mistake will be made if the procedures are followed. The description offers the most desirable goods and services for the company at the moment. If someone makes a mistake, the one who set up the standards bears the responsibility.
Stipulations or standards are manuals to clarify the most desirable procedures to accomplish work based on the status quo at that company. In an organization, some actually perform the tasks and others supervise them. Based on the work standards prepared by managers, the workers perform their work tasks. It is easy for the workers to do their work, since the procedures even for cases involving any trouble is described in them.
Standards Change as Time Passes
If you think ?gI am behind in my work today,?h you think that you are behind as compared to the ?gappropriate status according to the work standards.?h Is there any problem? If any problem exists, Kaizen is immediately needed.
If the work situation is uneventful and lacking any change, you may do your work according to the standards. Every day the same products are made, no one is absent from work, there is no change in temperatures... Under such conditions, workers do their work in practiced manner without paying attention to the work standards. However, there is no company that does not face changes. Business conditions fluctuate, and workers are sometimes absent from the work. We have both hot days and cold days. Machines are suddenly out of order and people make mistakes. When we cannot adapt to these changes under the existing standards, the standards need to be revised. Standards always need revision in response to changes.
In our home when my son was a child, his handkerchiefs and tissue packets were kept in the second drawer from the bottom of our bureau, and he had a habit of looking there before he went to school. However, as he grew up, the second drawer from the bottom became too low for him. We did not hesitate to make the upper drawer the one where we kept his handkerchiefs and tissue packets. Standards are procedures to make work easier. However, standards tend to change over time. Changing the standards is another way of describing Kaizen activities.
6. Classification of Breakthroughs in the Status Quo
There are several types of breakthroughs in the current situation. A small idea may improve the flow of work in one case. In another case, the accumulation of basic experiments, studies, trials, and errors may finally yield an output desired by consumers. Here, breakthrough activities in the status quo are classified into three categories:
Shohen (Small change): Activities which improve work methods by changing the status quo with one individual's effort on a small scale.
Chuhen (Medium change): Activities which devise new methods by taking designated steps to change the status quo on a medium scale with efforts by group members.
Taihen (Big change): Activities which change the status quo greatly, revolutionary methods based on principles differing from those used previously, dramatically producing wide-spread effects.
(Note) Shohen, Chuhen, Taihen are Japanese words which mean small, medium and big changes respectively
Shohen is an activity on a quite small scale and attempts to simplify work methods. As an activity, it is an attempt to make simple changes in work methodology. By discovering alternative proposals to achieve set goals, it attempts to solve the problems by choosing a better alternative than is employed at present. Although the economic effects gained from Shohen may be small, the accumulation of small Kaizen change activities will affect repetitive jobs cumulatively in a large way. Shohen can be applied to our daily lives or at home, and the activities can be joined by everyone. Installing a rolling shelf in the kitchen to make taking small things out of the cupboard easier, and putting a mesh bag inside the sink drain opening to enable the removal of garbage all at once are examples of what many housewives do. There are similar Kaizen activities in companies, and some are introduced in case study literature. In this paper, ?gKaizen?h is defined as ?gShohen?h and the word ?gShohen?h is replaced by ?gKaizen.?h
QC and VE Kaizen Activities are Chuhen
Some companies try to implement Kaizen activities from a more sophisticated standpoint. For example, Kaizen activities conducted by QC Circles and VE, as well as various other innovative methods, are an attempt at this scale of problem-solving. These are termed ?gChuhen.?h
The common theme of Chuhen activities is the certainty that ideas for making improvements in the status quo can be discovered if such an alternative idea is sought through fixed procedures. Techniques such as QC or VE can be employed to lead to an improved and effective idea.
In many cases, the Kaizen activities in the Chuhen range will bring larger economic effects than those of Shohen. Compared to Shohen, also, Chuhen sometimes has higher costs and may not be amenable to individual efforts. Actually, many companies develop QC and VE activities under a company-wide campaign by setting up a special section to promote them. People who have considerable experience and the authority to lead and develop the campaign with many other workers may be called to work in these sections. Companies give authority to these people in charge of promoting the campaign, and they bear the responsibility for the campaign. Unlike Shohen with its individual participation, Chuhen, or activities by an organized group, has greater motivational power, and the range of the objects of its study is far broader. However, these activities are also supported by individual workers. If any individual, as a constituent of the organization, lacks awareness of the issues, the effect of the activities by the group is lessened.
Taihen has the Large Effects of a Jet Engine
Among all the various Kaizen activities, the biggest changes are expected to be made by those with the Taihen ranking. The emergence of the jet engine ushered in the age of jet airplanes and interrupted the development of conventional propeller planes. Liquid crystal, penicillin, and atomic bomb technology are all typical examples of technological innovation. When a method which is fundamentally different from previous methods is used and far larger effects are brought, what emerges is called a ?gProduct of Innovation.?h Taihen refers to changes at such a level.
Some of these changes are produced by the accumulation of precise basic science studies, and others are produced as the by-products of studies with separate original goals. Unlike Shohen which is on an individual basis, Taihen are produced after repetitive trial and error. Even though a product brought about by Taihen will not fully demonstrate its effect at first, it can later be revised and changed into a product with sophisticated functions. For example, the principle of the turboengine was improved and later used in automobile engines. The principles of liquid crystals are now applied to calculators and computer display screens. In this context, it can be said that products of innovation are transformed into goods with a higher value by applying Shohen or Chuhen in the later stages. Shohen and Chuhen play a role in the final functions to complete Taihen.
Case studies of Shohen, Chuhen and Taihen
One day a fruit juice producer received this complaint from a consumer: the juice was not pleasant tasting because the fruit skins were mixed into the juice. The producer immediately took action and began by investigating the peeling work of hits in stock. Then they began Kaizen activities on the peelers. After comparing various peelers on the market, they decided to adopt a tool different from the existing types, and commensurate effects were obtained. This is a case of Shohen, the small Kaizen improvements.
Some time later, a worker by chance came up with another idea to improve the process. If juice is pressed out of the whole fruit parts, including the skins, and later filtered, the skins can be removed. Moreover, the work of peeling will be unnecessary. This can be called Kaizen on a medium scale, in other words, Chuhen. Indeed, Kaizen applied to processes can bring larger economic effects than Kaizen applied to tools and machines.
For this company to expect further, larger Kaizen is not impossible. For instance, thanks to the progress of biotechnology the cultivation of skinless fruit may become possible. With such skinless fruit, even the equipment to filter out the skins would become unnecessary. Using new raw materials like this is close to revolutionary innovation (Taihen).
Revolutionary innovation is a change which brings large effects through the use of methods fundamentally different from existing measures. Such change cannot be achieved by simply returning the feedback into the industrial systems as shown in Figure 3. Revolutionary innovation can be said to be changes in the input to the industrial systems. If an input differing fundamentally from existing ones (any input changes to the Men, Machines, Materials and Methods) emerges and is fed into the industrial systems, it can be called ?gRevolutionary Innovation.?h
For example, laser processing instruments utilizing laser beams and thin beams are new Methods within the industrial systems, and so can be called revolutionary technological innovation. Some might argue that to be precise; the invention of laser beams is an innovation and its application to machine processing should be ranked as a simple diversion (Chuhen). But if we are discussing industrial systems, I believe any changes in input can be called ?gTaihen.?h Some say that quality control, a type of control technology, is a change in Methods, so it can also be called ?grevolutionary (Taihen).?h
Shohen is Kaizen to change work methods so that workers can work more easily in the industrial systems. It is called ?gSoi?h (an ingenious expedient) in Japanese. Chuhen refers to activities engaging in organizational efforts toward Kaizen through a clear realization of QCD problems. Meanwhile, Taihen is the improvement of the inputs themselves. If a superior input is employed, the output will also change. With support from Shohen and Chuhen activities, even greater Kaizen effects can be expected.
7. Productivity Improvement and Kaizen Activities
Improving productivity does not mean increasing the volume of production. When a certain amount of output is produced with less input, it is said that ?gproductivity has improved.?h For improvements in productivity, work methods must be changed and Kaizen activities will lead to those changes. Therefore, the productivity improvement campaign is the same thing as the activation of Kaizen activities in companies. We must understand that ?gproductivity?h and ?gproduction volume?h are totally different terms and that Kaizen means ways to improve productivity.
The Mechanism for Productivity Improvement
Productivity as an index of efficiency is generally represented as a fraction obtained through division: output divided by input. In many cases, output, the fraction numerator, is shown as the amount of added value (or amount of production) to the finished products or services, and input, the fraction denominator, is shown as the number of employees (Men) or amount of Materials to be used. Therefore, improving productivity means increasing the total value of this fraction.
To increase the value of this fraction, there are basically two methods. They are to increase the numerator, or to decrease the denominator. In order to increase the amount of added value, the numerator, you may increase the amount of goods and services to be produced. But this will require that all goods and services produced will be valued by the consumers. You cad never increase the amount of added value if you increase the production volume of goods which do not sell well or if you provide unnecessary services. In contrast, if the numerator is controlled to a fixed number and the values of the denominator are decreased, it will improve the productivity with certainty. Producing the necessary amount of added value with less manpower or fewer raw materials will bring about an improvement in productivity. But in reality, general companies procure men and machines and materials by assuming a necessary amount of goods and services in advance. So in general, the numerators are fixed. We must consider that improving productivity will mean lowering the value of the denominators, assuming that the targeted value of the numerators is fixed.
While Japan was experiencing high economic growth, any product sold well. In an age when the demand for goods and services was on an upward trend, the improvement of profits could be targeted even through reckless production and furious sales. If more sophisticated Kaizen activities had been devised and carried out, there would have been chances for even greater profits.
8. Kaizen Activities for Increased Profits
Four Measures for Increased Profits
When companies aim to improve their profits, the following four methods are effective:
1. Raise unit prices for the sales of goods and services
2. Lower unit prices for the purchase of materials: input
3. Increase the amount of output
4. Produce goods and services with lower costs through Kaizen activities
The first method, raising unit sales prices, often brings many difficulties. This is because products on the market are already priced at their market prices, and the consumers will buy products and services from the competition if unit sales prices are raised. It is clear that a price increase will result in a loss of a certain share of the market. Other than the cases where the product enjoys a company monopoly of the market, or there is some understandable motivation such as the oil shock, it is difficult to carry out price increases.
The second method, lowering the purchase prices of materials, will earn charges of difficulty from those in charge of purchasing because they are always putting great effort into buying materials as cheaply as possible.
The third method, increasing the amount of output by increasing men and facilities, is indeed a good idea. If the goods and services are bought by consumers, the company profits will increase. However, if surplus output remain as stock, or are disposed of as waste, profits will not increase. Losses requiring extra materials or manpower will result instead.
The Effects of Kaizen Activities
The most practical measures for improving profits, which are carried out successfully in many companies, are found in the fourth method, Kaizen activities. Not all Kaizen activities can bring about cost reductions, but in many cases, cost-cutting is achieved if the activities target the elimination of waste. It is true that among those four measures, the economic effects of Kaizen activities are comparatively small when compared to the other three measures. Kaizen activities are characterized as: little and many makes a pile.
Suppose that a material bought at the price of \20 is processed, making the unit cost including variable costs \40 in total. The company sells the product for \50 each and earns added value of \10. Now, if they can sell only one unit of product a day, their total amount of added value will be \10. If they hope to increase the total amount of added value to \20, what should they do?
Let's examine the four measures for an increase in profits. First, they may increase the sales price from \50 to \60. Second, if they lower the materials cost by \10 and can buy the same material for \10, the added value would become \20. Third, they may sell two product units a day through sales promotion. In reality, however, it is tough for a company which is grasping for sales of one a day to come up with any ideas to sell two.
The fourth measure is cost reduction through Kaizen activities. Now, the purchase price of the material is \20, with processing and including variable costs, the unit cost comes to \40 total. If this can be lowered to \30, the added value will be \20. With the same sales volume, one product unit a day, and the same sales price, \50, and the same materials cost, \20, the added value of \20 can be achieved.
In this example, the processing cost of \20 is added to materials cost of \20, and the total cost including variable costs becomes \40 per unit. Lowering the processing cost of \20 is the goal of the Kaizen activities here. Nothing but Kaizen activities can produce profits through their own efforts, independent of the competitors, materials suppliers, and consumers. Actually, many companies, especially many manufacturers, aim to improve profits through various means such as the improvement of work-sites, the improvement of work procedures, the improvement of business practices, the improvement in the rate of defects, and the improvement of facilities. The first thing many companies should start in order to increase profits is positive Kaizen activities.
From India, Mumbai
kaizen is "continous improvement" and the theme behind all that practice in nutshell is "small positive changes are the force which bring big changes ultimately".
for example sorting of items in ur cupborad is the very small change but ultimatly it will bring big change u wont have to search everything as sorting make eveything keep in its proper place which save ur time ,efforts and u rnt bored or agnry that u just have to open the cupboard n take it out watever u want which without sorting u have to take half of cupbord items out on floor.
happy learning
umekulsoom
From Pakistan, Karachi
for example sorting of items in ur cupborad is the very small change but ultimatly it will bring big change u wont have to search everything as sorting make eveything keep in its proper place which save ur time ,efforts and u rnt bored or agnry that u just have to open the cupboard n take it out watever u want which without sorting u have to take half of cupbord items out on floor.
happy learning
umekulsoom
From Pakistan, Karachi
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