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Operations Management

Notes performance of the Kaizen program. The performance measures of the Kaizen Program of
Maruti Udyog Ltd. are given below:
1. No. of ideas generated

2. No. of ideas implemented (e.g. 1400 last month = number of modifications in a product *
number of units modified)
3. No. of suggestions given for communalizations of components across different models

4. No. of suggestions for communication of equipments across different lines
5. No. of suggestions for indigenization of spare parts via vendors.
In order to be successful change must take place rapidly. Kaizen is the process of implementing
Lean tools in a much focused effort and a short amount of time, typically one to five days. The
employees are rewarded for giving useful suggestions. These rewards are more of recognition,
such as "Kaizen man of the Month" titles and certificates or small gifts, rather than monetary
worth.
The Kaizen concept is shown schematically in Figure 6.3. Continuous improvement within the
organization is achieved by closing the crucial loop from problem to corrective action by
ensuring that all issues and corrective actions are resolved to a full resolution and by analyzing
crucial data and trends.

One important aspect of Kaizen is its emphasis on process, complimented with management
acknowledgement. Kaizen is oriented toward progressing in small steps. Given that any company
is likely to find results in this approach, a manager can't usually go wrong by employing these
techniques.

5's of Quality

5S is a method for organizing a workplace, especially a shared workplace. It's sometimes referred
to as a housekeeping methodology, however this characterization can be misleading because
organizing a workplace goes beyond housekeeping.

The key targets of 5S are workplace morale and efficiency. The assertion of 5S is, by assigning
everything a location, time is not wasted by looking for things. Additionally, it is quickly
obvious when something is missing from its designated location. 5S advocates believe the
benefits of this methodology come from deciding what should be kept, where it should be kept,
and how it should be stored. This decision making process should lead to a dialog which can
build a clear understanding, between employees, of how work should be done. It also instills
ownership of the process in each employee.
In addition to the above, another key distinction between 5S and "standardized cleanup" is
Seiton. Seiton is often misunderstood, perhaps due to efforts to translate into an English word
beginning with "S" (such as "sort" or "straighten"). The key concept here is to order items or
activities in a manner to promote work flow. For example, tools should be kept at the point of
use, workers should not have to repetitively bend to access materials, flow paths can be altered
to improve efficiency, etc.
The 5S's are:

1. Seiri means Separating refers to the practice of going through all the tools, materials, etc.,
in the work area and keeping only essential items. Everything else is stored or discarded.
This leads to fewer hazards and less clutter to interfere with productive work.

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