Page 198 - DMGT501_OPERATIONS_MANAGEMENT

Operations Management

Notes Even if one item produced is of Sub-standard & it is likely to effect the subsequent process, then
the process shall be stopped immediately and the entire team will discuss the “cause and effect”,
decide the remedial action, rectify the process and then restart the production. This helps in
bettering quality and reducing rejections, motivating workers as they feel proud of being a part
of the decision process. This helps as an over-all achieving higher productivity, lowering wastivity
& reducing cost of production per unit.

6.17 KAIZEN

'Kaizen' translated from Japanese means 'continuous improvement', taken from the word 'Kai'
which means continuous and 'zen' which means improvement. It is a management philosophy
and forms the basis of the Toyota Production System (TPS) as well as Lean Manufacturing.

The central philosophy of kaizen was probably best expressed by an earlier head of Toyota,
Toyota Sakichi (1867-1930), who said that no process could ever be declared perfect and that
therefore there was always room for improvement. Kaizen, as Toyoda Sakichi said, it is about
continually aiming for improvement not just on the shop floor but across the whole company.

Example: TQM as developed at Toyota is an all-embracing concept, embracing the whole
company. It reflects Toyota's belief that every worker in every department contributes to quality,
no matter how indirectly.
Kaizen strategy is one of the most important concepts in Japanese management and is credited
with being key to Japanese competitive success. Regarded as a conceptual "umbrella" consisting
of a collection of Japanese practices Kaizen includes the following:
1. Customer Orientation
2. Total Quality Control
3. Robotics
4. QC Circles
5. Suggestion Systems
6. Automation
7. Discipline in the Workplace
8. Total Productive Maintenance
9. Kanban

10. Just-in-time
11. Zero defects
12. New Product Development
13. Small Group Activities
14. Productivity Improvement
15. Statistical Quality Control
16. Cooperative Labour/Management Relations
There are three superordinate principles which form the bedrock of the Kaizen philosophy.
These principles are:
1. Process creates results: Without improving the process results do not improve. Look to
the improvement of one or more of the five inputs to the process-persons, machines,
methods, materials, and environment.

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