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The Kaizen method originated as a Japanese management concept referring to gradual, continuous improvement. It was proposed by Masaaki Imai, the father of Japanese continuous improvement, in his book Kaizen: The Key to Japan's Competitive Success. Kaizen means improvement, involving continuous improvement by everyone and in every link: from the highest management levels and managers down to workers. The "continuous improvement" strategy is the most important concept in Japanese management and the key to Japanese competitive success. Kaizen is in fact a philosophy of life. It assumes that every aspect of our lives should be constantly improved.
The key factors of Kaizen are: quality, the efforts of all employees, involvement, voluntary change and communication.
Continuous improvement is applied and improved as part of the system level. Through flow and pull systems, delivery time, process flexibility and responsiveness to customers are improved, and improvement activities enhance the company's processes from beginning to end.
What Is Gemba Kaizen
Gemba means "the real place—where things actually happen" in Japanese, and it is also a common word in Japanese daily life. In a broad sense, it means "the place where events happen"; in a narrow sense, Gemba refers to the "work area" or "work location" of an enterprise.
Kaizen means "continuous improvement and perfection." Therefore, in comprehensive terms, Gemba Kaizen in a narrow sense refers to "continuous improvement and perfection carried out in different areas or work locations of an enterprise."
The literal meaning of Kaizen is: through change (Kai), to become better (Zen).
The Origin of Continuous Improvement
Continuous improvement refers to "continuous improvement and perfection carried out in different areas or work locations of an enterprise." It originated from TWI (Training Within Industries) and MT (Management Training). TWI was "in-plant training" widely adopted by the U.S. munitions industry after World War II and developed in the United States in the 1940s. When TWI was introduced in many countries, it had the greatest impact in Japan; at least ten million Japanese business leaders, professionals and employees received TWI training, which had a profound influence on the theory and practice of Japanese corporate management.
TWI consists of three parts of standard training content:
First, JIT (Job Instructional Training), which makes leaders aware of the importance of giving employees sufficient vocational training and how to conduct such training;
Second, JMT (Job Methods Training), which concerns how to obtain ideas for improving and perfecting work methods and put them into practice;
Third, JRT (Job Relations Training), which concerns superior-subordinate relations and leadership methods. In Japan, these training programs are carried out by different professional organizations such as the Japan Industrial Training Association. At the same time, many leading Japanese companies have adapted TWI as needed to train their potential leaders.
MT was developed by the U.S. Air Force and was also introduced to Japan after World War II. Through nearly 50 years of unremitting efforts by Japan's Ministry of International Trade and Industry, by the end of 1994 more than three million Japanese business leaders had received MT training. In Japan, obtaining an MT training certificate is almost a prerequisite for entering middle and senior management.
MT training gives Japanese business leaders knowledge in the following three areas:
∙ Recognizing the importance of interpersonal relationships and personal relationships among employees
∙ Methods and value of continuously perfecting and improving processes and products
∙ Combining people and work methods and the benefits of scientifically and rationally using "Plan—Do—Check"
In short, through the introduction, digestion and absorption of TWI and MT, and in combination with the actual conditions of Japanese enterprises, Japanese industry successively developed management theories such as Total Quality Management (TQM) and the Just-In-Time production system (JIT), gradually forming a complete KAIZEN system.
The Basic Concepts of Continuous Improvement
1. KAIZEN and Corporate Leadership
With respect to KAIZEN, corporate leaders have two basic functions: maintenance and improvement. Maintenance includes all activities that ensure current technology and the standards related to the company's work, including training and discipline. This maintenance function requires corporate leaders to strive to make everyone in the company work according to standard processes.
Improvement, on the other hand, is the enhancement and upgrading of existing standards. KAIZEN focuses on achieving goals through continuous small-step improvements obtained through unremitting efforts. Japanese industry believes that corporate leaders should follow this principle: maintenance of standards plus improvement (as shown in the figure below).
Kaizen can also mean innovation and transformation (Innovation). Kaizen focuses on achieving goals through continuous small-step improvements obtained through unremitting efforts, while innovation emphasizes achieving great progress through massive investment in new technologies, processes or equipment. In the absence of funds, innovation and transformation are very difficult.
Western companies often focus only on innovation while neglecting the enormous benefits that Kaizen can bring to the enterprise. Kaizen emphasizes employee utilization, work ethics, work communication, training, group activities, employee participation and work self-discipline—it is a low-investment yet highly efficient method that enables enterprises to continuously improve and progress.
2. Process and Results
KAIZEN emphasizes a process-oriented way of thinking. Only by improving the process can better results be obtained. If the originally planned results are not achieved, then some process must have gone wrong; in this case, the process that caused the problem must be identified and corrected.
KAIZEN emphasizes the role of people in the process, which is significantly different from the results-oriented way of thinking emphasized by Western companies. Introducing KAIZEN also requires a process-oriented way of thinking. For example, some KAIZEN strategies such as the PDCA/SDCA cycle, QCD (quality, cost, delivery), TQM (Total Quality Management), TPM (Total Productive Maintenance) and JIT (Just-In-Time production system) will all fail if implemented in enterprises that do not focus on process.
Therefore, corporate leaders supporting and participating in the process of implementing KAIZEN is the organizational assurance for the success of KAIZEN activities.
3. Follow the PDCA/SDCA Cycle
To ensure the successful introduction of Kaizen, the PDCA cycle must first be introduced.
● Plan means setting goals or action plans to achieve improvement objectives. (Because Kaizen is a dynamic process of continuous improvement, goals should also be constantly updated.)
● Do means executing the work according to the plan.
● Check means verifying whether the work is carried out according to the plan and progressing in the intended direction.
● Adapt means avoiding recurrence of the original problem by standardizing new work procedures and setting goals for the next step of improvement.
Any work process is unstable at the beginning. This changing process must first be stabilized before the PDCA cycle can be introduced. At this point, the SDCA cycle [standardization—do—check—adapt] can be used first. The role of the SDCA cycle is to standardize and stabilize the existing process.
The role of the PDCA cycle is to improve these processes. SDCA focuses on maintenance, while PDCA focuses on perfection. Only when existing standards exist and are followed and the current process is stable can the PDCA cycle be entered.
4. Quality First
Among the three corporate goals of quality, cost and delivery, quality should always have priority. Even if the price and delivery terms offered to customers are attractive, if product quality is defective, you will not be able to gain a firm foothold in today's highly competitive market.
5. Speak with Data
Kaizen is the process of solving problems. If one wants to understand the essence of a problem and solve it thoroughly, one must first collect and analyze relevant data to truly understand the problem. Any attempt to solve a problem based on feelings or guesses without a foundation of data analysis is not objective. Collecting, checking and analyzing data on the current status of the relevant problem is the basis for finding solutions and further improvement measures.
6. Treat the Next Process as the Customer
Every job consists of a series of processes, and each process has its supplier and its customer. The statement "the next process is the customer" indicates the existence of two types of customers: internal customers (within the enterprise) and external customers (in the market).
Most enterprise employees only have relationships with internal customers. This fact also requires employees to have the obligation never to pass defective workpieces or information to employees in the next process. If every employee follows this rule, then the final customer in the market will receive high-quality products or services. A truly effective quality assurance system also means that every employee in the enterprise has this obligation and carefully follows this rule.
The Components of Continuous Improvement
If an enterprise wants to succeed in using the Kaizen strategy, it must introduce the following systems:
(I) Total Quality Management TQM (Total Quality Management)
Total Quality Management (TQM) evolved from Total Quality Control (TQC). Early TQC only emphasized that quality control in each process enjoys priority, that is, comprehensive quality control; today's TQM incorporates all aspects of the enterprise.
People should not regard TQC/TQM merely as an activity to control quality. It can also be used as a development strategy to enhance the enterprise's competitiveness and profit potential by continuously improving all aspects of work. The "Q" in TQC/TQM means quality—priority, and also includes control targets for cost and delivery. "T" stands for "total, all employees," meaning that all employees in the enterprise, from top management down to middle management and even production line operators, must participate.
In addition, suppliers, agents and distributors also join in. "T" also means top management, which requires the senior leadership of the enterprise to bear management responsibility and obligation for the successful implementation of TQC/TQM within the enterprise. "C" stands for Control, that is, control of the process. With TQC/TQM, people can understand the essence of the process, monitor and continuously improve it, thereby achieving successful improvement.
The task of corporate leaders in TQC/TQM activities is to evaluate the process through results. The result of this evaluation is the basis for improving the process, not a reason to criticize employees. TQC/TQM theory includes the following work methods or tools: corporate strategic restructuring, quality assurance systems, standardization, training, cost management and quality circle activities, etc.
(II) Total Productive Maintenance TPM (Total Productive Maintenance)
Implementing the Total Productive Maintenance model has now gradually become a trend. The focus of Total Quality Management (TQM) is generally to improve the efficiency of the enterprise, specifically to improve product quality; while Total Productive Maintenance (TPM) focuses on improving equipment efficiency. The goal of TPM is to establish a preventive equipment management and maintenance system through the efforts of all employees, so as to extend equipment life and maximize overall equipment efficiency.
TQM requires the participation of all employees throughout the enterprise, while TPM requires the participation of all employees related to production, including production personnel and maintenance personnel. The 5S activities concerning cleanliness and order (namely seiton, seiri, seiso, seiketsu and shitsuke) are the foundation of TPM. Implementing 5S alone can bring surprising results to the enterprise.
(III) Just-In-Time Production System (Toyota Production System) JIT (Just In Time)
Just-In-Time originated from Toyota Motor Corporation of Japan. Its purpose is to create a flat production system that can respond flexibly to changes in market demand by eliminating every non-value-adding activity within the enterprise. The methods or strategies used to establish a Just-In-Time production system are as follows: adjustment of takt time and cycle time, one-piece flow, "pull" production, elimination of hidden causes of equipment downtime, "U"-shaped production layout, "kanban" and reduction of setup time, etc.
To achieve this ideal Just-In-Time production system, Kaizen must be continuously promoted to eliminate all non-value-adding work processes on the production line. The Just-In-Time production system has significant results in reducing enterprise costs, while also ensuring product delivery times and improving the enterprise's profitability.
In summary, to achieve the control targets of quality, cost and delivery (QCD) and to satisfy customers, an enterprise must introduce three basic systems: Total Quality Management (TQM), Total Productive Maintenance (TPM) and Just-In-Time (JIT).
These three basic systems each have their own focus: Total Quality Management (TQM) takes overall quality as its main goal; Total Productive Maintenance (TPM) focuses on the operating quality of machines and equipment; and Just-In-Time (JIT) takes the other two very important aspects, namely cost and delivery, as its control targets.
Only when Total Quality Management (TQM) and Total Productive Maintenance (TPM) have been implemented effectively in an enterprise can the introduction of the Just-In-Time (JIT) production system be further considered.
(IV) Corporate Strategic Planning PD (Policy Deployment)
Although the goal of Kaizen focuses on perfection, if no goals are set for Kaizen and it is left to develop on its own, its effect will be limited. In the process of Kaizen activities, corporate leaders should actively formulate clear goals and assume leadership responsibility to ensure that the predetermined goals are achieved.
During the introduction period of Kaizen, careful preparation and control should be carried out. The top leadership of the enterprise must first plan a long-term development strategy and then break it down into medium-term and annual goals.
The top leadership of the enterprise must also formulate corresponding "implementation" plans based on its long-term development strategy, and then break them down level by level from top to bottom through the organizational structure, gradually forming action plans.
For example, if an enterprise's goal is "to maintain competitiveness, we must reduce costs by 10%," this can be achieved by increasing production capacity, reducing inventory and scrap rates, or improving production processes.
Kaizen without formulated goals is like a journey without a destination. If everyone strives toward a common goal, and this goal is supported by corporate leaders, then Kaizen is most efficient.
(V) Reasonable Suggestions (Proposal)
Reasonable suggestions are a component of the Kaizen strategy, and they can improve employees' work ethics through their active participation. Japanese industry values reasonable suggestions because they can increase employees' interest in participating in Kaizen. They encourage employees to put forward as many reasonable suggestions as possible, even though some suggestions may sometimes seem to have almost no effect.
Corporate leaders also do not expect every suggestion to bring huge benefits to the enterprise. What matters to them is cultivating employees who actively participate in Kaizen and are self-disciplined. Western companies' views on reasonable suggestions mainly focus on the economic benefits they can bring.
(VI) Activities of Groups
Generally, this refers to informal organizations within an enterprise that are connected by some specific work to achieve a certain goal. The most famous form is, for example, the quality circle (group).
Quality circles are not only dedicated to quality, but also to cost, safety and production capacity.
The primary task of corporate leaders is to ensure product quality—through establishing quality assurance systems, employee training, planning, formulation and execution of corporate strategic goals, and interconnection of systems—so that the entire enterprise achieves the predetermined quality, cost and delivery targets.
If the activities of an enterprise's quality circles are successful, this can demonstrate corporate leaders' support for such group activities.
In summary, the ultimate goal of the Kaizen strategy is to simultaneously achieve the control targets required in areas such as quality, cost and delivery through cross-departmental planning.
The Methods of Continuous Improvement
KAIZEN uses standardization, 5S and the elimination of "waste (Muda)" to achieve the enterprise's QCD (quality, cost and delivery) goals.
Standardization, 5S and the elimination of "waste" (Muda)—these three activities are how enterprises establish an efficient, successful and flat workplace (G