Members: Debi Aquino, Eureka Kate Balasolla, Jebi Dalisay Gallardo, Ern Genghis

Padayao and June Andrei Paredes

Lean Management
Lean management refers to a technique developed with the aim of minimising the
process waste and maximising the value of the product or service to the customer, without
compromising the quality. It is coined by Toyota Production System, which is a part of
lean thinking.
Lean is possible through distinct techniques such as flow charts, just in time, total
quality management, workplace redesigning, and total productive maintenance. It focuses
on delivering value to customers. A number of tools are deployed by the lean management
system to link customer value to the process and people.
1. Identify value: The value must be ascertained from the point of view of the ultimate
customer by product family.
2. Map the value stream: Ascertain all the steps involved in the value stream for each
product family and then eliminating those steps that are not productive.
3. Create the flow: Ensure that the steps which create value take place in a perfect
sequence, so the product reaches the customer smoothly.
4. Establish Pull: Once the flow is initiated, customers pull value from the next level
activity.
5. Seek Perfection: When the value is specified, value streams are ascertained, non-
productive steps are eliminated and flow and pull are instigated. The process is
started again and continue, till the perfection state is arrived, in which the perfect
value is created with no waste.

Kaizen Management
“Kaizen” refers to a Japanese word which means “improvement” or “change for
the better”. Kaizen is defined as a continuous effort by each and every employee (from the
CEO to field staff) to ensure improvement of all processes and systems of a particular
organization.
Kaizen works on the following basic principle.
“Change is for good”.
Kaizen means “continuous improvement of processes and functions of an
organization through change”. In a layman’s language, Kaizen brings continuous small
improvements in the overall processes and eventually aims towards organization’s success.
Japanese feel that many small continuous changes in the systems and policies bring
effective results than few major changes.

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 Kaizen process aims at continuous improvement of processes not only in
manufacturing sector but all other departments as well. Implementing Kaizen tools is not
the responsibility of a single individual but involves every member who is directly
associated with the organization. Every individual, irrespective of his/her designation or
level in the hierarchy needs to contribute by incorporating small improvements and
changes in the system.
Following are the main elements of Six Sigma:
 Teamwork
 Personal Discipline
 Improved Morale
 Quality Circles
 Suggestions for Improvement
Five S of Kaizen
“Five S” of Kaizen is a systematic approach which leads to foolproof systems, standard
policies, rules and regulations to give rise to a healthy work culture at the organization. The
process of Kaizen plays an important role in employee satisfaction and customer
satisfaction through small continuous changes and eliminating defects. Kaizen tools give
rise to a well-organized workplace which results in better productivity and yield better
results. It also leads to employees who strongly feel attached towards the organization.
Let us understand the five S in Detail:
1. SEIRI - SEIRI stands for Sort Out. According to Seiri, employees should sort out
and organize things well. Label the items as “Necessary”, ”Critical”, ”Most
Important”, “Not needed now”, “Useless and so on. Throw what all is useless. Keep
aside what all is not needed at the moment. Items which are critical and most
important should be kept at a safe place.
2. SEITION - Seition means to Organize. Research says that employees waste half of
their precious time searching for items and important documents. Every item should
have its own space and must be kept at its place only.
3. SEISO - The word “SEISO” means shine the workplace. The workplace ought to
be kept clean. De-clutter your workstation. Necessary documents should be kept in
proper folders and files. Use cabinets and drawers to store your items.
4. SEIKETSU-SEIKETSU refers to Standardization. Every organization needs to
have certain standard rules and set policies to ensure superior quality.
5. SHITSUKE or Self Discipline - Employees need to respect organization’s policies
and adhere to rules and regulations. Self-discipline is essential. Do not attend office
in casuals. Follow work procedures and do not forget to carry your identity cards
to work. It gives you a sense of pride and respect for the organization.

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 Total Quality Management
Total Quality Management is an extensive and structured organization
management approach that focuses on continuous quality improvement of products and
services by using continuous feedback. Joseph Juran was one of the founders of total
quality management just like William E. Deming.

Total Quality Management principles

1. Focus on customer
When using total quality management it is of crucial importance to remember that
only customers determine the level of quality. Whatever efforts are made with respect
to training employees or improving processes, only customers determine, for example
through evaluation or satisfaction measurement, whether your efforts have contributed
to the continuous improvement of product quality and services.
2. Employee involvement
Employees are an organization’s internal customers. Employee involvement in the
development of products or services of an organization largely determines the quality
of these products or services. Ensure that you have created a culture in which
employees feel they are involved with the organization and its products and services.
3. Process centered
Process thinking and process handling are a fundamental part of total quality
management. Processes are the guiding principle and people support these processes
based on basis objectives that are linked to the mission, vision and strategy.
4. Integrated system
Following principle Process centered, it is important to have an integrated
organization system that can be modelled for example ISO 9000 or a company quality
system for the understanding and handling of the quality of the products or services of
an organization.
5. Strategic and systematic approach
A strategic plan must embrace the integration and quality development and the
development or services of an organization.
6. Decision-making based on facts
Decision-making within the organization must only be based on facts and not on
opinions (emotions and personal interests). Data should support this decision-making
process.

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 7. Communication
A communication strategy must be formulated in such a way that it is in line with
the mission, vision and objectives of the organization. This strategy comprises the
stakeholders, the level within the organization, the communications channels, the
measurability of effectiveness, timeliness, etc.
8. Continuous improvement
By using the right measuring tools and innovative and creative thinking, continuous
improvement proposals will be initiated and implemented so that the organization can
develop into a higher level of quality.

Just-in-time
The just-in-time (JIT) inventory system is a management strategy that aligns raw-
material orders from suppliers directly with production schedules. Companies employ this
inventory strategy to increase efficiency and decrease waste by receiving goods only as
they need them for the production process, which reduces inventory costs. This method
requires producers to forecast demand accurately.
The JIT inventory system contrasts with just-in-case strategies, wherein producers
hold sufficient inventories to have enough product to absorb maximum market demand.
One example of a JIT inventory system is a car manufacturer that operates with low
inventory levels but heavily relies on its supply chain to deliver the parts it requires to build
cars, on an as-needed basis. Consequently, the manufacturer orders the parts required to
assemble the cars, only after an order is received.

Five Major Principles of JIT

1. Eliminate Waste
The core principle objective of Just in TIme (JIT) is to improve process
efficiency by eliminating waste. Toyota’s Fujio Cho defines waste as "anything other
than the minimum amount of equipment, materials, parts, and workers, which are
absolutely essential to production" (Suzaki, 1987).
The seven common types of waste identified by JIT include:
 processing waste
 waste due to idling time of machinery
 waste due to product defects
 waste of motion or faulty working techniques

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  waste related to transportation
 waste from overproduction
 inventory waste

2. Quality at the Source (Jidoka)

Jidoka or ensuring quality at the source ranks amongst the major JIT principles.
This principle entails identification and correction of problems at the manufacturing
stage itself, as soon as it occurs.
3. Simplification
The third of the major JIT principles is simplification or using minimum
resources to attain process efficiency. The JIT principle holds that excess of any kind
masks problems such as low quality raw materials, unreliable vendors, defects in
machinery, and the like. Removing the excess makes problems apparent.
4. Cellular Manufacturing System
Group technology or Cellular manufacturing is another major JIT principle. The
Cellular manufacturing system advocates that segmented and product focused
manufacturing is much simpler than a linear process oriented manufacturing.
JIT institutes strategic capacity management techniques such as multiple small
machines instead of a large bulky machine that requires constant production for
profitability and others towards this end.
5. Respect for People
Among the major JIT principles is respect for people at all levels, be it
employees, customers, suppliers or management. Success of JIT depends on
identification of what the customer needs and fulfilling the request in the best possible
manner.
Success of JIT depends on
 clear and effective communication among all the stakeholders
 employees empowered to make decisions and cross-trained to handle many
machinery to ensure smooth flow of the product
 suppliers understanding and fulfilling demand for specific components at the right
time

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 Comparison and Contrast

Similarities of (1) Lean Management, (2) Kaizen Management, (3) Total Quality
Management and (4) Just-in-time are:
Quality. They focus on the quality of their products, services, and operations.
Process Centered. They focus on the operation of the organization and on how to execute
it properly.
Customer Satisfaction: They value the satisfaction of their customer by assuring that they
can provide the right type, right amount and good quality of the product to the customers.

Similarities between (1) Lean Management, (2) Kaizen Management and (3) Total
Quality Management.
Improvement. They emphasize that the organization needs to improve continuously
especially on its operations, finance, management and human relations.
Employees Performance. They take into consideration the performance of their
employees, on how they need to act on the workplace and on how to perform the task/jobs
assigned to them.

Similarities between (1) Kaizen Management, (2) Total Quality Management and
(3) Just-in-time.
Employment Satisfaction. They value the satisfactions of their employees, the importance
of the employees’ involvement on the workplace and the employee’s convenience and
safety.
Timeliness. They also focus on when to use the resources and providing services or
delivering goods to the customer on time.

Similarities between (1) Lean Management, (2) Kaizen Management and (3) Just-
in-time.
Efficiency. They seek efficiency of the operations flow, on how to use the resources and
on how to serve the customer efficiently.

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 Similarities between (1) Kaizen Management and (2) Just-in-time.
Inventory Strategy. They give importance to how to manage the inventory system of the
operations, on how to store and use the resources as well as when to use the resources.

Similarities between (1) Kaizen Management and (2) Total Quality Management.
Teamwork. They give importance on how the employees work together to achieve the
objectives of the organization in relation to its missions, visions and strategies.
Suggestion for Improvement. They value the feedback of their employees and customer
to their operations and to their products. These suggestions will be helpful in making the
improvement of the organization.

Similarities between (1) Lean Management and (2) Just-in-time.

Waste Reduction. This emphasizes that you need to use minimal amount of resources to
yield the maximum about of outputs and to use resources when it is needed. By doing this,
the organization will reduce it wastes.

Similarities between (1) Lean Management and (2) Total Quality Management
Value of the Product. They give importance on giving value, maintaining the value and
improving the value of the products they produced.

Difference of Just-in-time to other management.

Cost reduction on inventory. Just-in-time greatly focuses on the inventory system to
lessen the cost of maintaining the inventory unlike the other managements.

Difference of Kaizen to other management.

Discipline. Kaizen Management give importance to the discipline of the employees. On
how the employees act, behave and apply the rules and regulations on the workplace. This
will contribute to the continuous improvement that they envision.