Page 103 - DMGT206_PRODUCTION_AND_OPERATIONS_MANAGEMENT

Production and Operations Management

Notes Kaizen

Continuous improvement as practiced by Japanese firms is called Kaizen. Kaizen seeks continual
improvement of machinery, materials, labour utilization, and production methods through
applications of suggestions and ideas of company teams. Like Six Sigma (covered in a subsequent
section), it also emphasizes the scientific method, particularly hypothesis testing about the
relationship between process inputs (X’s) and outputs (Y’s) using design of experiments (DOE)
methods.
Under the maintenance function:

 Kaizen requires the management to first establish policies, rules, directives and standard
operating procedures (SOPs) and then
 Work towards ensuring that everybody follows the SOP.

 This is achieved through a combination of discipline and motivational measures.
Under the improvement function,
 Kaizen works continuously towards revising the current standards,

 Once they have been mastered, higher standards are established.
Kaizen signifies small improvements as a result of co-ordinated continuous efforts by all
employees. The suggestion system is an integral part of an established management system that
aims at involving employees in Kaizen. The number of worker’s suggestions is regarded as
important criteria in reviewing the performance of the worker’s supervisor and the manager of
the supervisor.
The Japanese management encourages employees to generate a great number of suggestions
and works hard to consider and implement these suggestions, incorporating them into the
overall Kaizen strategy. ‘Quality Circles’ is also part of the Kaizen system. This has been discussed
earlier. Management also gives due recognition to employees’ efforts for improvement. An
important aspect of the suggestion system is that each suggestion, once implemented, leads to
an upgraded standard.

Notes Kaizen requires on-the-job training of workers. It ensures that every worker has a
thorough understanding of:
1. The needs of those who use and/or pay for the product or services;
2. How to meet those needs; and

3. How to improve the system’s ability to meet those needs.
The availability of modern statistical software has made analyzing and displaying data
easier. These techniques are used in Kaizen to encourage employees.

Self Assessment

Fill in the blanks:

8. Continual improvement comes from a well-established strategy for quality, one that is
based on ……………… .
9. Continuous improvement as practiced by Japanese firms is called ……………… .

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