Kaizen – Continuous Incremental Improvements
Kaizen is a daily activity that is used to create continuous incremental improvements. The Kaizen process relies on a series of continual small improvements that create a greater impact on an organization’s efficiency and effectiveness. The methodology makes small changes continuously, monitors the results and then adjusts accordingly. It teaches employees to be more efficient by helping them identify and eliminate waste in their daily business processes (1). These improvements help organizations become more efficient and improve safety and quality, which ultimately leads to higher customer satisfaction while improving the bottom line.
Cannon and Toyota are great examples of companies who have successfully implemented and sustained continuous improvement through the Kaizen methodology. Both companies have historically encouraged employees to develop small process improvement suggestions and turn them for review. Each year, Cannon and Toyota collect over 60-70 suggestions per employee per year that have been documented, distributed and implemented (2). For some Japanese companies, 99% of suggestions are implemented. Although these implemented improvements individually are not large, together they have successfully decreased production time by eliminating waste and making the overall company processes more efficient.
As more and more companies adopt process improvement initiatives, many are turning to the Kaizen methodology. In order to implement the Kaizen methodology, an organization begins with the planning and preparing phase. They must target and identify an improvement area. Once identified, the process improvement cycle begins:
- standardize an operation
- measure the standardized operation
- gauge measurements against requirements
- innovate to meet requirements and increase productivity
- standardize new, improved operations
- continue cycle (3)
After an organization runs through the cycle they must follow-up. In a true Kaizen culture, improvements are sustained and continually checked to make sure the set standards are being met and improved upon. In order for employees to meet the increasing standards, organizations must provide training, materials and supervision by process improvement leaders within their organization.
(1) http://www.epa.gov/lean/thinking/kaizen.htm
(2) http://www.1000ventures.com/business_guide/mgmt_kaizen_main.html
(3) http://www.ahrq.gov/qual/rapidcycle/rapidcycle2.htm
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