Kaizen
Since the start of the industrial revolution, managers of facilities have spent a great deal of time
looking for new ways to improve production and decrease costs. For over 30 years, Kaizen has been
one of the more popular and successfully applied management philosophies used to help facilities attain
these goals.
Kaizen was first developed in Japan just after WWII. The literal English translation of “Kaizen” means
“continuous improvement.” When applied as a management term, the meaning is expanded and
more specifi c. This def nition is: “The active participation by all employees to continually look for
imperfections.”
The roots of Kaizen can be traced back to the late 1940s. A time when Japan’s economy was still reeling
from the war. Of course, Japan overcame its many challenges and is viewed as one of the world’s great
economic powers today. In fact, Japanese facilities were “out-producing” most countries by the 1970s
with better overall quality and pricing. Today, Japanese facilities are renowned for producing high-quality
products and implementing innovation. What made Japan such a force to be reckoned with?
In the years following World War II, the U.S. provided aid to help reconstruct Japan’s economic
infrastructure. As part of this aid, U.S. industrial consultants travelled to Japan to teach modern methods
of production and effi ciencies. Japanese facilities embraced these new methods and improved-upon them
by integrating many of their own cultural and business philosophies. This is how Kaizen originated.
Since then, the philosophy has helped many Japanese facilities become very successful. Today, Kaizen is
helping to increase the profi ts and effi ciencies of facilities located all over the world. However, for this to
be successful, all employees must embrace the philosophy and be willing to apply its ideals in their work
and with coworkers. Implementing Kaizen is likely to change many roles and responsibilities in a facility.
Management will begin looking to all employees for ideas to improve a facility. This, in turn, will place
greater responsibility on employees to find improvements.
Where Kaizen is successfully applied, managers support employees by helping them fi nd and implement
new methods of efficiency. Since ideas for improvement come from all employees, managers will find
the new methods spawned from these ideas are easier to implement. Even top executives are expected
to actively participate in Kaizen. This ensures everyone is on the same page and a facility constantly
improves.
Compared with methods used in many traditional Western business, Kaizen can be much simpler to
implement and maintain since all employees actively participate.
TRADITIONAL WESTERN BUSINESS PRACTICES
As with any region in the world, North American and European businesses have their own philosophies
and management styles. At the core of traditional Western business philosophy is “division,”
or segregation by work type. Western businesses generally segregate management, labor and
specializations into their own separate divisions.
In many Western businesses, managers are seen as leaders because they develop the ideas, propose
them and implement them. Their role is to be in charge. Managers in these businesses generally spend
much of their time working in an offi ce and are not expected to make regular visits to work areas. In
some facilities, this may serve as a buffer to allow managers space to work. However, the result can
actually limit their communication with work area personnel and reduce their effectiveness as a manager.
COMMON WESTERN PHILOSOPHIES
• Innovation – Innovations are typically developed by those designated to do so.
• Performance – Managers visit work areas when improvements are required.
• Bottom Line – Changes are implemented only when money can be saved.
• Tradition – “If it ain’t broke, don’t fi x it” is a common ideal.
• Profit Sharing – Rewards go to employees producing measurable profi ts (e.g. Salespeople).
• Inventory – To avoid running-out of inventory, it’s well-stocked.
• Quality – Good designers produce quality products.
• Reliability – Good machinery means reliable production.
• Specialization – Focus only on your job. Learning other jobs may result in a lay-off due to redundancy.
• Repetition – The more you do the same job, the better you get at it. Never deviate from your training.
• Direction – Wait for management to tell you what to do or produce.
• Not My Job – Venturing outside of your job description may result in an additional expected duty.
• Loyalty – Always take care of “Number One.”
KAIZEN IS DIFFERENT
In recent history, Kaizen-influenced business philosophies have helped to shape new roles for much
of the world’s management and labor. As a result, many facilities are experiencing greater efficiencies
and organization than ever before. Many of these advancements are the direct result of a labor
force empowered by Kaizen. This creates an environment in which all employees participate in fi nding
effi ciency improvements and are never afraid to contribute to the success of their facility.
Modern Kaizen takes this belief one step further. Work area personnel aren’t just encouraged to
contribute ideas for facility improvements— it’s expected. This is a philosophy shared by all employees
and helps build an atmosphere of teamwork and achievement. This can greatly improve communication
between work area personnel and management and help facilitate effi ciency improvements in work
areas.
In a Kaizen facility, all suggested ideas are reviewed by management, without preferential treatment.
Ideas found to have merit are quickly implemented, no matter who suggested it. This level of active
participation empowers employees to constantly strive for improvement and work to keep their facility
competitive.
BASIC KAIZEN PHILOSOPHIES
• Innovation – Comes from anyone, but the right environment must be provided.
• Performance – Managers spend time in work areas so performance improvements are well communicated.
• Bottom Line – Cost reductions involve many small steps by both management and labor.
• Tradition – A company should only have a tradition for change.
• Profit Sharing – All employees are rewarded for fi nding effi ciency improvements that increase profi ts.
• Inventory – Lower inventories, reduce waste and help uncover fl aws in the system.
• Quality – Quality comes from constant attention to all levels of product design, development and production.
• Reliability – Good station operators maintain and improve their own machines for greater reliability.
• Specialization – Learn your job fi rst and then learn everything related to your job.
(Never Specialize. This helps employees formulate new ideas for improvement.)
• Repetition – The more one improves, the more the company saves and the more they have to pay employees.
• Direction – Look around for visual cues for what to do next.
• Not My Job – Instead of complaining, find ways to make your job easier and more interesting.
(The management’s goal is the same as yours.)
• Loyalty – Look-out for your company. It has the same goal as you.
BENEFITS & APPLICATION OF KAIZEN
Where Kaizen is properly applied, many unforeseen benefits may result. Managers often become more
effective leaders, work area personnel are motivated and all employees operate more as a cohesive unit. The
end-result is an environment fostering teamwork, where people work together to achieve common goals.
Not only does Kaizen help all employees improve the work they do, facilities experience many benefi ts as well.
Often, these are realized as increased profi ts and lower costs. Managers stand to benefi t the greatest by applying
Kaizen. They will fi nd they have a constant fl ow of ideas on how to improve their facility, many of which they would
never have thought of themselves. Once implemented, the effect these ideas have can ripple through a facility,
positively infl uencing many unforeseen elements. They are also known to expose many issues.
Many times, issues managers may have been unaware of. These benefi ts are only realized by disciplined managers
who actively seek new ideas from all employees. Managers who follow through on these responsibilities are rewarded for their efforts.
They gain greater respect from employees and, in turn, become more effective managers. This alone brings value to a
facility.
This style of management empowers employees by making them responsible for managing the
implementation of their own ideas. They become focused on achieving the same effi ciency-improving and profit-increasing goals
as management. Several popular application strategies are listed in this guide to help properly apply Kaizen.
Since no two facilities are the same, these are only suggested strategies and should be modified to best suit a facility’s
individual needs.
SUCCESS STORIES
One of the largest auto manufacturers in the world, Toyota®, is well-known as a pioneer in Kaizen. They
are credited with formalizing the philosophy and helping turn it into a globally accepted management
philosophy as early as the 1960s. Since then, Toyota® claims to have experienced many successes
through the continued practice of Kaizen. In one example, Toyota® managers claimed to have received
over 75,000 suggestions from 7,000 employees in a one year period, of which 99% were implemented.
These are unusual results, but clearly possible with the proper application of Kaizen. One can only
imagine how much money Toyota® saved by implementing this many improvements.
In Kaizen, the implementation of an idea is viewed only as one small improvement in a continual search
for improvements. However, these individual improvements add-up over time and can provide substantial
benefi ts for any facility. Quality, customer service and even sales can increase, while safety issues and
sick days decrease. In addition, employees working in a Kaizen facility generally fi nd work to be easier
and more enjoyable. This results in higher employee morale, job satisfaction and lower turn-over.
With every employee looking for ways to make improvements, facilities may see several fundamental
benefi ts. These include:
• Improved productivity
• Improved quality
• Reductions in safety issues
• Quicker deliveries
• Lower costs
• Increased customer satisfaction
Kaizen is known to be benefi cial to facilities facing economic challenges. In Japan, facilities applying
Kaizen were known to overcome many great economic obstacles. In fact, post-WWII Japan was
far from an ideal environment for unbridled economic growth. Yet, it occurred. Thanks, in part, to Kaizen.
Like the implementation of any new method or process, applying Kaizen does require a brief period
of adjustment. At fi rst, employees and managers may be reluctant to make changes in their roles.
Preparing a long list of employee and facility-wide benefi ts can help overcome this resistance and open
the door to greater acceptance.
In general, facilities are going to benefi t from Kaizen differently as will many employees. However, there
will be some common, facility-wide benefi ts for each employee. Early on, these benefi ts should be shared
with employees during regularly scheduled facility meetings, along with any success stories, to help foster
Kaizen’s continued acceptance and use.
APPLICATION ELEMENTS
The following elements describe several key concepts used to successfully apply Kaizen:
• Make continuous small improvements based on employee suggestions
• Foster the open sharing of ideas
• Hold facility-wide meetings where employee suggestions are always the central theme
• Treasure all employee suggestions as a positive contribution to improve operations
• The fl ow of ideas should move up and down the chain of command
• Create a simple suggestion form
• Categorize suggestions
• Assign categories for suggestions
• Develop a process to manage suggestions
• Assure suggestions are taken seriously
RANKING
As shown in the sample forms below (Fig 1, 2), each facility needs to develop a ranking system to aid in
the suggestion evaluation process. Ranking systems help managers sort ideas worth implementing and
eliminate those without merit.
Depending on the facility, medium quality suggestions with less complexity could be categorized for
implementation (IMP) by work area personnel (WAP). Those with higher levels of complexity may be
categorized for management implementation or involvement (MNG). In either case, all suggestions
should be easily and simply ranked. This way, managers can give serious consideration to the better
suggestions. Assure all suggestions are reviewed without bias and seriously considered. Failing to
properly review suggestions would be counter-productive.
To help rank suggestions by merit, establish a point system. Criteria used to rank suggestions can then
be categorized. Point systems are, of course, up to members of the Kaizen Implementation Team to
design and should be tailored to fi t an individual facility. Ranking examples include: Quality, Complexity,
Supervisory Attention.
Always work to encourage suggestions. This is accomplished by assuring contributors know their ideas
are under review and will be seriously considered. Implementing most reasonable ideas encourages
future contributions and allows them to be tested before elimination. If an idea works, standardize
it! If not, provide a reason to the employee who made the suggestion. By creating this avenue for
contributions, the overall quality and quantity of ideas should improve and helps put Kaizen suggestions
into action.
ESTABLISHING PROCEDURES
Successfully implemented ideas should be incorporated into a work area’s standard operating procedures as soon as
possible. This requires properly documenting procedures so work area personnel have an easy-to-read visual reference.
Posting procedures on, or near, locations-of-use is an excellent way to permanently embed a new procedure into a
work area. Labels and signs, such as the example in Fig 3, help facilities improve safety, increase production and reduce
employee training.
As previously mentioned, it’s generally best to allow the employee who suggests an idea the opportunity
to implement it. This may still require management participation, but empowering an employee to
actively manage the implementation of their idea increases its chance to succeed and its continued use.
When handled in this manner, work area personnel not only work to see their ideas succeed, they are
more open to other new ideas. This increases their performance and lifts morale. Plus, employees are
known to take greater pride in a procedure they helped defi ne and implement.
INCENTIVES AND REWARDS
Never miss an opportunity to reward a good idea. Incentives show your facility values all suggestions and
encourages more of them. Monetary incentives work well, but in some situations other rewards may also
be just as effective. Facilities often fi nd they are rewarded with a monetary savings well-beyond the cost
of a bonus. In Japan, employees are known to have furnished entire homes with their rewards, while their
facilities realized even greater savings.
Depending on how a reward system is structured, rewards can go to individual employees or to work
areas where an idea originated. Rewarding employees by work areas helps encourage teamwork, but
individual rewards can also breed more competition and better suggestions.
To track a facility’s progress, chart all successfully implemented ideas on a banner and post it for
all employees to see. This creates competition and becomes a very effective tool in attracting more
inventive ideas. When properly implemented, both monetary and non-monetary incentive programs have
the potential to snowball into a facility-wide competition amongst employees.
The goal of charting successfully implemented ideas is to provide employees with the feedback
and motivation they need to continue to make more suggestions. Ultimately, this leads to facility
improvements so management should make every effort to help the process be as pleasant as possible
for all employees.
CUSTOMER FOCUS
With Kaizen, the main goal is to satisfy the customer. To help achieve this, the customer’s needs and
requirements must be understood. The following list provides several sample questions facilities may fi nd
useful in learning customer attitudes:
• What does the customer want from this product?
• Why do they like our product?
• What makes the product more acceptable to the customer?
• Would I want the product?
In Kaizen, the term “customer” applies to much more than just external individuals and entities. Where
properly applied, employees using Kaizen consider everyone they come into contact as their customer.
When production personnel see coworkers as customers, more care is put into the products they produce.
They may notice inconsistencies in the product they are assembling. Instead of overlooking the issue and
passing-it-on to the next station they ask, “Why is their product inconsistent?”
Employees of a Kaizen Facility trace these issues, up the line, to the root of the cause. The issue may
then be eliminated by suggesting an improvement. The ultimate goal is to provide the highest level of
customer satisfaction, without regard to whether a customer is internal or external.
STANDARDIZING & SUSTAINING KAIZEN
Employees need uniform, facility-wide policies to assure Kaizen is properly followed. Rules should be established
to describe how ideas are collected,rewarded and implemented. Managers should make every effort
to keep the lines of communication between work area personnel and mangers open. Their offices should be
made as accessible as possible to all employees.
As an example, product design engineers should be communicating directly with production managers on
the floor. This feedback helps designers recognize issues sooner and well before production of a new product begins.
• Evaluate current facility goals and consider setting new ones
• Goals should focus on reducing production time, cost and waste
• Changes made to meet these goals should be reviewed and adjusted wherever necessary
• A facility’s organizational structure and policies should be closely analyzed so Kaizen is uniformly applied
• Information and ideas should not only travel down the chain, but up the chain as well
• Executives commonly walk into work areas and talk face-to-face with work area personnel
• Executives often ask work area personnel about their families and jobs.
INTEGRATION
Kaizen should be viewed as a facility’s “umbrella philosophy.” One that covers all other “Lean
Manufacturing” systems, methods and processes. It helps to ensure the successful implementation
of ideas, by binding each into a single efficiency improving movement. In addition, facilities experience many side-benefi ts
by integrating Kaizen with other Lean Manufacturing technologies. By doing so, techniques can be modified to better
suit unique facility requirements. Therefore, it’s a good idea to implement Kaizen first. Once fully implemented, employees
will often be ready to accept more complex and challenging implementations.
In the spirit of Kaizen, a facility always views itself as imperfect. Issues are inevitable, but some require more expertise than a
single person may have. This is where a “small group activity” known as Quality Control Circles (QC Circles) can be used.
QC Circles is a method specifically designed to help work areas and facilities tackle more complex issues. QC Circles are never
formal assignments and are generally formed, ad-hoc, by the employees themselves whenever a complex issue arises.
KAIZEN LEADER
In many facilities, Middle Managers become the leading advocates of the Kaizen Philosophy. Their regular interaction with work
area personnel gives them the unique ability to directly encourage employee suggestions and assure good suggestions are
implemented. Once fully applied, Middle Managers will fi nd Kaizen to be an invaluable tool in aiding the
implementation of many of their goals and those established by upper management. Converting a facility to Kaizen takes time and patience.
It also requires a dedication. Utilize the following tips to help improve the conversion process:
• Make meetings more effi cient by developing employee problem-solving-skills
• Show employees the many ways Kaizen benefi ts them and the facility in which they work
• Assure a facility is “Kaizen Conscious” by applying the philosophy daily and by rewarding suggestions
• Identify good problem solvers in your facility and look to them for ideas in solving complex issues
• The more employee-solved-issues; the easier it is to meet goals set forth by upper management
• Standardized policies help to maintain direction and achieve goals
• Never hesitate to change policy when they become dated or no longer useful
• Since Kaizen promotes constant change, policies must remain flexible for continued adjustment.
COMPLIMENTS OF GRAPHIC PRODUCTS
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looking for new ways to improve production and decrease costs. For over 30 years, Kaizen has been
one of the more popular and successfully applied management philosophies used to help facilities attain
these goals.
Kaizen was first developed in Japan just after WWII. The literal English translation of “Kaizen” means
“continuous improvement.” When applied as a management term, the meaning is expanded and
more specifi c. This def nition is: “The active participation by all employees to continually look for
imperfections.”
The roots of Kaizen can be traced back to the late 1940s. A time when Japan’s economy was still reeling
from the war. Of course, Japan overcame its many challenges and is viewed as one of the world’s great
economic powers today. In fact, Japanese facilities were “out-producing” most countries by the 1970s
with better overall quality and pricing. Today, Japanese facilities are renowned for producing high-quality
products and implementing innovation. What made Japan such a force to be reckoned with?
In the years following World War II, the U.S. provided aid to help reconstruct Japan’s economic
infrastructure. As part of this aid, U.S. industrial consultants travelled to Japan to teach modern methods
of production and effi ciencies. Japanese facilities embraced these new methods and improved-upon them
by integrating many of their own cultural and business philosophies. This is how Kaizen originated.
Since then, the philosophy has helped many Japanese facilities become very successful. Today, Kaizen is
helping to increase the profi ts and effi ciencies of facilities located all over the world. However, for this to
be successful, all employees must embrace the philosophy and be willing to apply its ideals in their work
and with coworkers. Implementing Kaizen is likely to change many roles and responsibilities in a facility.
Management will begin looking to all employees for ideas to improve a facility. This, in turn, will place
greater responsibility on employees to find improvements.
Where Kaizen is successfully applied, managers support employees by helping them fi nd and implement
new methods of efficiency. Since ideas for improvement come from all employees, managers will find
the new methods spawned from these ideas are easier to implement. Even top executives are expected
to actively participate in Kaizen. This ensures everyone is on the same page and a facility constantly
improves.
Compared with methods used in many traditional Western business, Kaizen can be much simpler to
implement and maintain since all employees actively participate.
TRADITIONAL WESTERN BUSINESS PRACTICES
As with any region in the world, North American and European businesses have their own philosophies
and management styles. At the core of traditional Western business philosophy is “division,”
or segregation by work type. Western businesses generally segregate management, labor and
specializations into their own separate divisions.
In many Western businesses, managers are seen as leaders because they develop the ideas, propose
them and implement them. Their role is to be in charge. Managers in these businesses generally spend
much of their time working in an offi ce and are not expected to make regular visits to work areas. In
some facilities, this may serve as a buffer to allow managers space to work. However, the result can
actually limit their communication with work area personnel and reduce their effectiveness as a manager.
COMMON WESTERN PHILOSOPHIES
• Innovation – Innovations are typically developed by those designated to do so.
• Performance – Managers visit work areas when improvements are required.
• Bottom Line – Changes are implemented only when money can be saved.
• Tradition – “If it ain’t broke, don’t fi x it” is a common ideal.
• Profit Sharing – Rewards go to employees producing measurable profi ts (e.g. Salespeople).
• Inventory – To avoid running-out of inventory, it’s well-stocked.
• Quality – Good designers produce quality products.
• Reliability – Good machinery means reliable production.
• Specialization – Focus only on your job. Learning other jobs may result in a lay-off due to redundancy.
• Repetition – The more you do the same job, the better you get at it. Never deviate from your training.
• Direction – Wait for management to tell you what to do or produce.
• Not My Job – Venturing outside of your job description may result in an additional expected duty.
• Loyalty – Always take care of “Number One.”
KAIZEN IS DIFFERENT
In recent history, Kaizen-influenced business philosophies have helped to shape new roles for much
of the world’s management and labor. As a result, many facilities are experiencing greater efficiencies
and organization than ever before. Many of these advancements are the direct result of a labor
force empowered by Kaizen. This creates an environment in which all employees participate in fi nding
effi ciency improvements and are never afraid to contribute to the success of their facility.
Modern Kaizen takes this belief one step further. Work area personnel aren’t just encouraged to
contribute ideas for facility improvements— it’s expected. This is a philosophy shared by all employees
and helps build an atmosphere of teamwork and achievement. This can greatly improve communication
between work area personnel and management and help facilitate effi ciency improvements in work
areas.
In a Kaizen facility, all suggested ideas are reviewed by management, without preferential treatment.
Ideas found to have merit are quickly implemented, no matter who suggested it. This level of active
participation empowers employees to constantly strive for improvement and work to keep their facility
competitive.
BASIC KAIZEN PHILOSOPHIES
• Innovation – Comes from anyone, but the right environment must be provided.
• Performance – Managers spend time in work areas so performance improvements are well communicated.
• Bottom Line – Cost reductions involve many small steps by both management and labor.
• Tradition – A company should only have a tradition for change.
• Profit Sharing – All employees are rewarded for fi nding effi ciency improvements that increase profi ts.
• Inventory – Lower inventories, reduce waste and help uncover fl aws in the system.
• Quality – Quality comes from constant attention to all levels of product design, development and production.
• Reliability – Good station operators maintain and improve their own machines for greater reliability.
• Specialization – Learn your job fi rst and then learn everything related to your job.
(Never Specialize. This helps employees formulate new ideas for improvement.)
• Repetition – The more one improves, the more the company saves and the more they have to pay employees.
• Direction – Look around for visual cues for what to do next.
• Not My Job – Instead of complaining, find ways to make your job easier and more interesting.
(The management’s goal is the same as yours.)
• Loyalty – Look-out for your company. It has the same goal as you.
BENEFITS & APPLICATION OF KAIZEN
Where Kaizen is properly applied, many unforeseen benefits may result. Managers often become more
effective leaders, work area personnel are motivated and all employees operate more as a cohesive unit. The
end-result is an environment fostering teamwork, where people work together to achieve common goals.
Not only does Kaizen help all employees improve the work they do, facilities experience many benefi ts as well.
Often, these are realized as increased profi ts and lower costs. Managers stand to benefi t the greatest by applying
Kaizen. They will fi nd they have a constant fl ow of ideas on how to improve their facility, many of which they would
never have thought of themselves. Once implemented, the effect these ideas have can ripple through a facility,
positively infl uencing many unforeseen elements. They are also known to expose many issues.
Many times, issues managers may have been unaware of. These benefi ts are only realized by disciplined managers
who actively seek new ideas from all employees. Managers who follow through on these responsibilities are rewarded for their efforts.
They gain greater respect from employees and, in turn, become more effective managers. This alone brings value to a
facility.
This style of management empowers employees by making them responsible for managing the
implementation of their own ideas. They become focused on achieving the same effi ciency-improving and profit-increasing goals
as management. Several popular application strategies are listed in this guide to help properly apply Kaizen.
Since no two facilities are the same, these are only suggested strategies and should be modified to best suit a facility’s
individual needs.
SUCCESS STORIES
One of the largest auto manufacturers in the world, Toyota®, is well-known as a pioneer in Kaizen. They
are credited with formalizing the philosophy and helping turn it into a globally accepted management
philosophy as early as the 1960s. Since then, Toyota® claims to have experienced many successes
through the continued practice of Kaizen. In one example, Toyota® managers claimed to have received
over 75,000 suggestions from 7,000 employees in a one year period, of which 99% were implemented.
These are unusual results, but clearly possible with the proper application of Kaizen. One can only
imagine how much money Toyota® saved by implementing this many improvements.
In Kaizen, the implementation of an idea is viewed only as one small improvement in a continual search
for improvements. However, these individual improvements add-up over time and can provide substantial
benefi ts for any facility. Quality, customer service and even sales can increase, while safety issues and
sick days decrease. In addition, employees working in a Kaizen facility generally fi nd work to be easier
and more enjoyable. This results in higher employee morale, job satisfaction and lower turn-over.
With every employee looking for ways to make improvements, facilities may see several fundamental
benefi ts. These include:
• Improved productivity
• Improved quality
• Reductions in safety issues
• Quicker deliveries
• Lower costs
• Increased customer satisfaction
Kaizen is known to be benefi cial to facilities facing economic challenges. In Japan, facilities applying
Kaizen were known to overcome many great economic obstacles. In fact, post-WWII Japan was
far from an ideal environment for unbridled economic growth. Yet, it occurred. Thanks, in part, to Kaizen.
Like the implementation of any new method or process, applying Kaizen does require a brief period
of adjustment. At fi rst, employees and managers may be reluctant to make changes in their roles.
Preparing a long list of employee and facility-wide benefi ts can help overcome this resistance and open
the door to greater acceptance.
In general, facilities are going to benefi t from Kaizen differently as will many employees. However, there
will be some common, facility-wide benefi ts for each employee. Early on, these benefi ts should be shared
with employees during regularly scheduled facility meetings, along with any success stories, to help foster
Kaizen’s continued acceptance and use.
APPLICATION ELEMENTS
The following elements describe several key concepts used to successfully apply Kaizen:
• Make continuous small improvements based on employee suggestions
• Foster the open sharing of ideas
• Hold facility-wide meetings where employee suggestions are always the central theme
• Treasure all employee suggestions as a positive contribution to improve operations
• The fl ow of ideas should move up and down the chain of command
• Create a simple suggestion form
• Categorize suggestions
• Assign categories for suggestions
• Develop a process to manage suggestions
• Assure suggestions are taken seriously
RANKING
As shown in the sample forms below (Fig 1, 2), each facility needs to develop a ranking system to aid in
the suggestion evaluation process. Ranking systems help managers sort ideas worth implementing and
eliminate those without merit.
Depending on the facility, medium quality suggestions with less complexity could be categorized for
implementation (IMP) by work area personnel (WAP). Those with higher levels of complexity may be
categorized for management implementation or involvement (MNG). In either case, all suggestions
should be easily and simply ranked. This way, managers can give serious consideration to the better
suggestions. Assure all suggestions are reviewed without bias and seriously considered. Failing to
properly review suggestions would be counter-productive.
To help rank suggestions by merit, establish a point system. Criteria used to rank suggestions can then
be categorized. Point systems are, of course, up to members of the Kaizen Implementation Team to
design and should be tailored to fi t an individual facility. Ranking examples include: Quality, Complexity,
Supervisory Attention.
Always work to encourage suggestions. This is accomplished by assuring contributors know their ideas
are under review and will be seriously considered. Implementing most reasonable ideas encourages
future contributions and allows them to be tested before elimination. If an idea works, standardize
it! If not, provide a reason to the employee who made the suggestion. By creating this avenue for
contributions, the overall quality and quantity of ideas should improve and helps put Kaizen suggestions
into action.
ESTABLISHING PROCEDURES
Successfully implemented ideas should be incorporated into a work area’s standard operating procedures as soon as
possible. This requires properly documenting procedures so work area personnel have an easy-to-read visual reference.
Posting procedures on, or near, locations-of-use is an excellent way to permanently embed a new procedure into a
work area. Labels and signs, such as the example in Fig 3, help facilities improve safety, increase production and reduce
employee training.
As previously mentioned, it’s generally best to allow the employee who suggests an idea the opportunity
to implement it. This may still require management participation, but empowering an employee to
actively manage the implementation of their idea increases its chance to succeed and its continued use.
When handled in this manner, work area personnel not only work to see their ideas succeed, they are
more open to other new ideas. This increases their performance and lifts morale. Plus, employees are
known to take greater pride in a procedure they helped defi ne and implement.
INCENTIVES AND REWARDS
Never miss an opportunity to reward a good idea. Incentives show your facility values all suggestions and
encourages more of them. Monetary incentives work well, but in some situations other rewards may also
be just as effective. Facilities often fi nd they are rewarded with a monetary savings well-beyond the cost
of a bonus. In Japan, employees are known to have furnished entire homes with their rewards, while their
facilities realized even greater savings.
Depending on how a reward system is structured, rewards can go to individual employees or to work
areas where an idea originated. Rewarding employees by work areas helps encourage teamwork, but
individual rewards can also breed more competition and better suggestions.
To track a facility’s progress, chart all successfully implemented ideas on a banner and post it for
all employees to see. This creates competition and becomes a very effective tool in attracting more
inventive ideas. When properly implemented, both monetary and non-monetary incentive programs have
the potential to snowball into a facility-wide competition amongst employees.
The goal of charting successfully implemented ideas is to provide employees with the feedback
and motivation they need to continue to make more suggestions. Ultimately, this leads to facility
improvements so management should make every effort to help the process be as pleasant as possible
for all employees.
CUSTOMER FOCUS
With Kaizen, the main goal is to satisfy the customer. To help achieve this, the customer’s needs and
requirements must be understood. The following list provides several sample questions facilities may fi nd
useful in learning customer attitudes:
• What does the customer want from this product?
• Why do they like our product?
• What makes the product more acceptable to the customer?
• Would I want the product?
In Kaizen, the term “customer” applies to much more than just external individuals and entities. Where
properly applied, employees using Kaizen consider everyone they come into contact as their customer.
When production personnel see coworkers as customers, more care is put into the products they produce.
They may notice inconsistencies in the product they are assembling. Instead of overlooking the issue and
passing-it-on to the next station they ask, “Why is their product inconsistent?”
Employees of a Kaizen Facility trace these issues, up the line, to the root of the cause. The issue may
then be eliminated by suggesting an improvement. The ultimate goal is to provide the highest level of
customer satisfaction, without regard to whether a customer is internal or external.
STANDARDIZING & SUSTAINING KAIZEN
Employees need uniform, facility-wide policies to assure Kaizen is properly followed. Rules should be established
to describe how ideas are collected,rewarded and implemented. Managers should make every effort
to keep the lines of communication between work area personnel and mangers open. Their offices should be
made as accessible as possible to all employees.
As an example, product design engineers should be communicating directly with production managers on
the floor. This feedback helps designers recognize issues sooner and well before production of a new product begins.
• Evaluate current facility goals and consider setting new ones
• Goals should focus on reducing production time, cost and waste
• Changes made to meet these goals should be reviewed and adjusted wherever necessary
• A facility’s organizational structure and policies should be closely analyzed so Kaizen is uniformly applied
• Information and ideas should not only travel down the chain, but up the chain as well
• Executives commonly walk into work areas and talk face-to-face with work area personnel
• Executives often ask work area personnel about their families and jobs.
INTEGRATION
Kaizen should be viewed as a facility’s “umbrella philosophy.” One that covers all other “Lean
Manufacturing” systems, methods and processes. It helps to ensure the successful implementation
of ideas, by binding each into a single efficiency improving movement. In addition, facilities experience many side-benefi ts
by integrating Kaizen with other Lean Manufacturing technologies. By doing so, techniques can be modified to better
suit unique facility requirements. Therefore, it’s a good idea to implement Kaizen first. Once fully implemented, employees
will often be ready to accept more complex and challenging implementations.
In the spirit of Kaizen, a facility always views itself as imperfect. Issues are inevitable, but some require more expertise than a
single person may have. This is where a “small group activity” known as Quality Control Circles (QC Circles) can be used.
QC Circles is a method specifically designed to help work areas and facilities tackle more complex issues. QC Circles are never
formal assignments and are generally formed, ad-hoc, by the employees themselves whenever a complex issue arises.
KAIZEN LEADER
In many facilities, Middle Managers become the leading advocates of the Kaizen Philosophy. Their regular interaction with work
area personnel gives them the unique ability to directly encourage employee suggestions and assure good suggestions are
implemented. Once fully applied, Middle Managers will fi nd Kaizen to be an invaluable tool in aiding the
implementation of many of their goals and those established by upper management. Converting a facility to Kaizen takes time and patience.
It also requires a dedication. Utilize the following tips to help improve the conversion process:
• Make meetings more effi cient by developing employee problem-solving-skills
• Show employees the many ways Kaizen benefi ts them and the facility in which they work
• Assure a facility is “Kaizen Conscious” by applying the philosophy daily and by rewarding suggestions
• Identify good problem solvers in your facility and look to them for ideas in solving complex issues
• The more employee-solved-issues; the easier it is to meet goals set forth by upper management
• Standardized policies help to maintain direction and achieve goals
• Never hesitate to change policy when they become dated or no longer useful
• Since Kaizen promotes constant change, policies must remain flexible for continued adjustment.
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