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Management - Improvement
Improvement can be broken down between innovation and Kaizen. Innovation involves a drastic improvement in the existing process and requires large investments. Kaizen signifies small improvements as a result of coordinated continuous efforts by all employees. Kaizen (the translation of kai (change) zen (good) is improvement). This method became famous by the book of Masaaki Imai Kaizen: The Key to Japan's Competitive Success.
So what is Kaizen ?
Kaizen refers to philosophy or practices that focus upon continuous improvement of processes in manufacturing, engineering, supporting business processes, and management. By improving standardized activities and processes, kaizen aims to eliminate waste as in lean manufacturing( Toyota Production System ).
All we are doing is looking at the time line; from the moment the customer gives us an order, to the point when we collect cash. We are reducing that time line by removing the non-value-added wastes. Taiichi Ohno
Order
Cash
Kaizen Cycle
Start Here
Do It Again Document Reality Celebrate
Kaizen
Plan Countermeasures Measure Results
Verify Change
Document reality
If you make changes based on data, the data should be based on reality
Do your share
Where is it applicable ?
It has been applied in healthcare ,psychotherapy, life-coaching, government, banking, and many other industries. When used in the business sense and applied to the workplace, kaizen refers to activities that continually improve all functions, and involves all employees from the CEO to the assembly line workers. It also applies to processes, such as purchasing and logistics, that cross organizational boundaries into the supply chain.
Thus
Kaizen is a daily process, the purpose of which goes beyond simple productivity improvement.
It is also a process that, when done correctly, humanizes the workplace, eliminates overly hard work ("muri"), and teaches people how to perform experiments on their work using the scientific method and how to learn to spot and eliminate waste in business processes.
6. 7.
zero defects
total productive maintenance (TPM) kanban Just-in-Time (JIT) productivity improvement
4. The employee implements the idea. If a larger improvement idea is approved, the employee should take leadership to implement the idea.
Kaizen at Toyota
There are two kinds of kaizen activities at Toyota: kaizen made by the supervisory staff and engineers as their functions, and that made by workers through the quality circles and suggestion system. The management sets a reference ( target ) cost of each of the parts and a standard time for their production. Then the shop floor that produces these parts and vehicles firstly endeavors to attain these costs and standard time, and then reduces them by carrying on kaizen activities.
A maintenance team contributes to increasing the reliability of equipment mainly by executing preventive maintenance and equipment kaizen.
Kaizen at Toyota
An assembly line is divided into about ten segments per function. It is permitted to have a buffer between two segments, the buffer corresponding to five minutes operations. Thus, when a segment is stopped because of a problem, the others continue to work. So, the production efficiency of the assembly line as a whole does not get lower . A large conveyer installed on the ground level permit workers to operate, standing on it and without walking much with a car body moving, and especially without walking backward. Tasks to carry heavy parts also disappeared by installing automatic or semi-automatic equipment
Summary
Kaizen signifies small improvements as a result of coordinated continuous efforts by all employees. It is also a process that, when done correctly, humanizes the workplace, eliminates overly hard work, and teaches people how to perform experiments on their work using the scientific method and how to learn to spot and eliminate waste in business processes.
The key Kaizen practices are classified as those which are part of the culture and mindset , and those which are part of the production .
CASE STUDY
About GEX
Gokaldas Exports Ltd. (GEX) is one of Indias largest apparel exporter. GEXs founding principles of passion, performance, people and products fueled phenomenal growth over 30 years. Through hard work and a dedication to innovation and quality, the Hinduja family built their company into a major supplier of the worlds most preferred apparel brands, including leading casual and sports clothing lines such as Nike and The Gap. It is a one-stop shop for the worlds most preferred apparel brands, including major casual and sports clothing lines.
In 2008, GEX had US $250 million in sales and employed 45,000 people working in 45 factories.
The Challenge
At the dawn of the 21st century, increasing competitiveness in the global garment industry started depressing the companys profits. GEXs leaders determined they would need to improve profits 15 percent to 20 percent without adding resources in order to maintain their leading position and remain competitive in the high-volume, low-margin global garment industry. Nike, a major client, strongly suggested that the company implement lean process improvements. Some members of GEXs leadership team recognized that lean management could be a long-term solution, but long-time family members resisted, a common reaction to new ideas in many Indian businesses that have achieved success using a traditional management philosophy. They believed it was a good idea for automotive and other heavy-industry companies, but not theirs.
Solution
Nike so strongly believed that lean practices would position GEX for the future that the company paid for TBM Consulting to assess GEXs operations in March of 2007.
The assessment revealed the potential for significant improvement, but GEXs leaders still resisted. Finally, when learning of TBMs unconditional satisfaction guarantee, the founding fathers agreed to test the waters.
Expansion
From January 2008 to March 2009, TBM and GEX expanded the program to four plants, leading to remarkable results The company expanded its Lean approach to 15 plants by March of 2010 (75 percent of capacity) and is expanding kaizen events to business processes as well. Companywide, GEX teams hold an average of 10 kaizen events a week.
Results
Lean has become a key enabler for GEX and its future continued success in driving revenue, quality, and profitability. While the retailclothing sector was devastated by a global recession, GEX made significant strides in on-time delivery, firstpass yield, and productivity even growing sales by two percent in spite of a dreadful economic downturn. Key improvements are helping to significantly improve its competitive position within the industry: lead time, employee absenteeism and attrition.
Results
Results
Going Forward
The global recession starting in 2008 caused a drastic drop in apparel demand, but GEX is positioned to weather the downturn. India is the worlds sixth-largest apparel exporter, and the thirdlargest among Asian nations. As the global economy recovers and demand bounces back, a wave of consolidation among small-scale producers is expected. As a large-scale lean producer, GEX is positioned to grow revenues with limited investment in new resources.
THANKYOU
PRESENTED BY: AKRITI DIXIT(1) SAKSHI KHURANA(14) SUGANDHA RATHORE(20)