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SUPPLY CHAIN LOGISTIC IMPROVEMENT (KAIZEN) (BENEFITS OF KAIZEN (Improved…
SUPPLY CHAIN LOGISTIC IMPROVEMENT (KAIZEN)
HISTORY
KAIZEN
The ability to make small continuous improvements eventually added up to become major benefits.
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
By 1950, Toyota implemented a unique quality cycle which eventually lead to the birth of the often documented ‘Toyota Production System’.
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’.
DEMING
Japan was left in ruins and faces moral and quality issues to move ahead.
In August 1950 at the Hakano Convention Center, William Edwards Deming was invited to give a speech on ‘Statistical Product Quality’.
The nuclear bombing of Hiroshima and Nagasaki marked the defeat of the Japanese in World War II.
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.
WHAT IS KAIZEN
In Japanese ‘Kai’ means change while ‘Zen’ means good. Literal translation mean that ‘change is good’, ‘change for the better’ or ‘improvement’.
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.
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.
BENEFITS OF KAIZEN
Improved service & product quality
Elimination of muda or waste
Better communication
Improved competitiveness
Job satisfaction
Higher customer satisfaction
KAIZEN PRINCIPLES
Raising the standard
Get employees involvement
Problem identification
Start with easiest to improve first
PDCA-PLAN,DO,CHECK,ACTION
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).
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.
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.
KAIZEN IN LOGISTIC
Trucking: Are we using the correct truck type to transport timber? Are the trucks properly maintained and managed?
Diesel Usage: Do we need to change to Euro 4 type diesel to have better performance?
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?
ver attitude: Have all the drivers been properly trained? Do they got enough rest?