SUPPLY CHAIN LOGISTIC IMPROVEMENT (KAIZEN) (BENEFITS OF KAIZEN (Higher…
SUPPLY CHAIN LOGISTIC IMPROVEMENT (KAIZEN)
KAIZEN IN LOGISTIC
ver attitude: Have all the drivers been properly trained? Do they got enough rest?
Tire quality: Do we need to buy expensive but quality tires or we can settle with cheap but lesser quality tires? Are we getting the most optimum price for the tires? Can we use retread tires?
Diesel Usage: Do we need to change to Euro 4 type diesel to have better performance?
Trucking: Are we using the correct truck type to transport timber? Are the trucks properly maintained and managed?
Steps to Observe:
Planning: Requires the establishment of objectives or KPI
in order to observe the output verses the expectations.
Do: The implementation stage of the plan. It involves day-to-day activity where collection of data is critical.
Check/Study: The actual results are gathered and studied at this stage. A comparison is then made between the actual results and the desired results.
Action: Taken based on what was learnt in the check/study step. The process is repeated again to ensure that continuous improvement is achieved.
The tool is also known as the Deming circle/wheel/cycle or the Shewhart cycle. The other version of PDCA is OPDCA where “O” stands for observe.
One of the easiest yet powerful management tools to control and to find continuous improvement of process is called the PDCA (Plan-Do-Check-Action).
Start with easiest to improve first
Get employees involvement
Raising the standard
BENEFITS OF KAIZEN
Higher customer satisfaction
Elimination of muda or waste
Improved service & product quality
WHAT IS KAIZEN
The most notable feature of Kaizen is realizing the fact that big results will come from many small changes accumulated over time . Kaizen requires everyone’s participation to identify problems and to make collective decisions.
For the purpose of clarity, we will define Kaizen as the practice of continuous improvement for aspects of business. Kaizen can be used in a manufacturing environment as well as in logistics and supply chain.
In Japanese ‘Kai’ means change while ‘Zen’ means good. Literal translation mean that ‘change is good’, ‘change for the better’ or ‘improvement’.
That speech left the Japanese amazed and eventually lead to an era called Japanese post-war economic miracle from (1950’s-1960’s). The Japanese actually rose from ashes of war to become one of the top economic superpowers in less than ten years.
The nuclear bombing of Hiroshima and Nagasaki marked the defeat of the Japanese in World War II.
In August 1950 at the Hakano Convention Center, William Edwards Deming was invited to give a speech on ‘Statistical Product Quality’.
Japan was left in ruins and faces moral and quality issues to move ahead.
The Kaizen miracle started in the 1930s with Toyota. It was popularized by Sakichi Toyoda who liked to inspire his staff by saying ‘Open the window; it’s a big world out there’.
By 1950, Toyota implemented a unique quality cycle which eventually lead to the birth of the often documented ‘Toyota Production System’.
Kaizen was made famous by Masaki Imai. He produced two books on the concept:
Kaizen: The Key to Japan's Competitive Success
Gemba Kaizen: A Common Sense Low Cost Approach to Management
The ability to make small continuous improvements eventually added up to become major benefits.