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Manufacturing Basics and
Hi MBBP Subscribers, Total Customer Satisfaction, Theory of Constraints, Materials Requirement Planning, Enterprise Resource Planning, Just-In-Time, Total Quality Management, Business Process Reengineering and Flow Technology are some of the initiatives that have been launched in industry over the last decade. While some companies implementing these programs have achieved significant advances in quality, speed and costs, most have failed to achieve promised results. According to industry gurus, the winners attribute their success to adopting the following management practices:
I agree with the above list, but I believe that most companies employ most of these management practices in their business. Why is it then that when most companies launch a new quality, production or inventory control initiative it slowly and gradually transcends into just another failed management attempt to improve performance? "New programs never thrive, they just fade away" is the hallmark of such companies and consequently they never reach their full growth and profit potentials. So if the above list of management practices doesn't really separate the winners from the also-rans - what does? Why are some companies successful at obtaining positive results from such initiatives while other companies fail? If it's not on the above list of manage-ment practices - what is it? I try to answer that question in this week's article. It appears below. Have a nice day, and stay connected.
P.S. Don't miss September's Special MBBP Subscribers offer at the bottom of the article.
The Answer: KAIZEN, Quick-Hitting Process Improvement A study of successful companies will invariably show that they have developed a culture of gradual, continuous improvement. This culture provides the basis for new initiative implementation success. The Japanese call it kaizen - a management culture of gradual, continuous improvement. I describe it as "a tenacious focus on quick-hitting, process improvements." If you doubt the power of gradual, continuous improvement you need to study the careers of Vince Lombardi and Tiger Woods. Their huge success stories are testimonials to kaizen. Vince Lombardi focused his players on the continuous improvement of the execution of basics - that's kaizen! Tiger Woods attributed his success to his relentless quest for a better swing, for higher quality gamesmanship and a daily pursuit of perfection - that's also kaizen! In business, kaizen focuses on three basics; Workplace Effectiveness, Elimination of Waste and Standardization. As an introduction to kaizen, I have delineated below their most important features: Workplace Effectiveness The 5Ss:
Elimination of Waste, Strain and Discrepancy A simple checkpoint systems
The Five Ws and the One H WHO - Who does it? Who is doing it? Who should be doing it? Who else can do it? Who else should do it? WHAT - What to do? What is being done? What should be done? What else can be done? What else should be done? WHERE - Where to do it? Where is it done? Where should it be done? Where else can it be done? Where else should it be done? WHEN - When to do it? When is it done? When should it be done? What other time can it be done? What other time should it be done? WHY - Why does he do it? Why do it? Why do it there? Why do it then? Why do it that way? HOW - How to do it? How is it done? How should it be done? Can this method be used in other areas? Is there any other way to do it? Problem-Solving Tools
Kaizen calls for use of the full PDCA (Plan, Do, Check, Action) problem-solving cycle. PDCA demands that team members not only identify problem areas but also identify the causes, analyze them, implement and test new countermeasures and establish new standards and/or procedures. Standardization Objectives
"If not, why not - The Whys" checklist A. Operator
B. Machine/Facilities
C. Materials
D. Operations Method
Kaizen keeps you thinking and proactive in your pursuit to improve. Bottom line results come slowly but surely and these incremental gains eventually add up to a significant competitive advantage. The spirit of kaizen can also provide innovative actions that can yield amazing breakthroughs in speed, quality and cost. Without kaizen, you and your employer will gradually become complacent and accept the status quo as your business culture. As I see it, the lack of kaizen in a business culture is the primary cause of new program failures and the downfall of many companies.
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