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The Secret of Successful Companies; KAIZEN = Continuous change for the better
The transition from divided markets to a global market has brought fierce competition, requiring companies to offer high quality at low cost while rapidly developing customer-focused products and services. Successful companies today have not settled for the status quo but have survived by anticipating these changes through continuous improvement activities. During this process, Japanese companies, as well as all other successful companies, have adopted and implemented the Kaizen philosophy.
Kaizen is a combination of the Japanese words kai (change) and zen (better). Together, they mean "change for the better," or in other words, "continuous improvement." It is a life philosophy that focuses on change, continuously improving every aspect of life—home, work, personal, and social—through small steps.
Settling for the current situation is the main enemy of Kaizen. It conveys the message that people should always strive for change and improvement. Kaizen is a philosophy that leads people to success in all areas of life through small but confident steps.
In its dictionary definition, a standard is defined as “something that conforms to specific measures, laws, or usage, and can be taken as an example or basis, uniform.” In the sense that concerns us, a standard refers to policies, rules, procedures, and instructions prepared by management to ensure that employees repeat their work correctly and reliably. Additionally, technical specifications used to define the features of products, machinery, and materials are also considered standards.
The standards used in businesses:
Kaizen technique means developing and maintaining through small, gradual improvements. Kaizen is a constant challenge to existing standards. Standards exist only to be replaced by better ones. Permanent improvement can only be mentioned when the next task is carried out according to the new standard. Standardization also ensures that the gains achieved through improvement spread throughout the company. Kaizen has not reached its goal until this spread occurs. Improving standards means creating more advanced ones. Continuous improvement can only be achieved when better standards are established. Therefore, Kaizen practitioners believe that standards are temporary by nature and view them as stepping stones used to move from one to another through ongoing improvement efforts.
If standards cannot be implemented by employees and the actual situation is different, they should be revised. If they are not being followed, management should take the necessary measures to ensure discipline. Standards apply to everyone, and it is management's responsibility to ensure that everyone works in accordance with them. This is called 'discipline.'
When we look at improvement methods in companies, we see two different approaches: one is gradual progress (Kaizen), and the other is progress that occurs suddenly in a single big step (innovation). Kaizen involves developing and maintaining business standards through small, gradual improvements. Innovation, on the other hand, involves making substantial financial investments in new technologies or tools, resulting in a significant leap in the current state. This change is not Kaizen.
Kaizen does not exclude innovation; in fact, Kaizen and innovation complement each other at a certain point. Kaizen strives to maximize benefit by improving the current state. However, over time, this state may no longer be sufficient for the conditions of the day, at which point attention should turn to innovation. In today’s competitive environment, the cost of using the latest technology may be high, but so is the cost of not applying advanced management techniques. If a company is to continue existing, it needs both Kaizen and innovation.
Kaizen prioritizes process because good outcomes depend on good processes. Process-oriented thinking bridges the gap between processes and outcomes, goals and tools, and targets and measures, allowing people to view the whole picture without bias.
For example; Quality control began with inspecting finished products, but improvement in quality cannot be achieved by inspection alone. Quality can only be achieved by improving production processes. Successful companies that improve quality in their production processes have now begun to build quality into products from the design stage. This example clearly explains the relationship between process and outcome. Management’s job is to direct processes and outcomes. While supporting and encouraging process improvement, management must also monitor performance and outcomes. A manager who only focuses on results cannot make the right decisions, but after examining the indicators that show efforts to improve processes, they can make better decisions. This is because improvement efforts are small, gradual steps, and their effects are long-term. Management must believe that the results of these efforts will be seen in the long run.
Criteria that prioritize processes are called "P criteria," while those that prioritize outcomes are called "S criteria."
P criteria are long-term, aimed at employee efforts, and often require behavioral changes. S criteria, on the other hand, are direct and short-term. P criteria and S criteria can be developed and used at every level of management. Managers should be concerned with results, but when we look at successful companies' managers, we often see that they also think process-oriented. They ask questions related to the process and consider both P and S criteria when making decisions. The P criteria they take into account during decision-making include:
If management uses process-oriented thinking properly and supports it with the Kaizen philosophy, they will see how much the company's competitiveness will increase in the long run.
The results of Kaizen activities must meet the requirements of the following three criteria; if they do not, the activity cannot be considered a Kaizen effort.
Kaizen should not create a negative situation in any of these three areas. For example, if costs are reduced as a result of a Kaizen effort but work safety is compromised or the risk increases, the Kaizen effort is not accepted. If quality increases but costs also rise, it is not considered a Kaizen effort.
Kaizen management has two main elements; Preservation refers to ensuring that all employees work according to the current standards, that new standards are implemented when they are created, and that their compliance is monitored, spread, and sustained. Improvement refers to activities aimed at creating more advanced standards. Once more advanced standards are created, ensuring their implementation becomes the task of preservation.
Preserving standards is the responsibility of the employees, while improving them is the responsibility of management. Operators spend all their time applying the standards. As they gain knowledge about their work, receive training, and develop skills by working in different jobs, they begin to use their intelligence as well as their physical efforts. Their interest in improvement activities increases, and they start making suggestions. At this point, they begin to perform the task of preserving standards properly.
Investing in Kaizen means investing in people; its impact is gradual, often invisible, and felt in the long term. Management needs to be determined and patient in this regard.
Top management plays a crucial role in managing the Kaizen program. Once you start Kaizen, there is no turning back. In a successful Kaizen program, Kaizen becomes ingrained in the company culture and never leaves. Management must initiate the program with determination and discipline and ensure its continuity. With a good start, they must influence employees and create belief and motivation to gain their full support. Employees will neither adopt nor implement anything that management does not believe in, embrace, or apply. If an initiative is unsuccessful when first launched, regaining the trust and belief of employees for a second attempt will be 2-3 times more difficult. Therefore, careful preparation before a good start is crucial. These preparations are listed below;
Actions should be based on accurate data. If your data collection system is weak or non-existent, you should first establish this system. When information is collected accurately, analyzed correctly, and implemented, you will always achieve improvement.
The PDCA cycle is a series of activities carried out to implement improvement efforts, monitor their results, and ensure the sustainability of progress achieved.
Plan; begins with identifying a problem, analyzing the current situation, and collecting data for the improvement plan (developing a solution). Problem-solving tools such as Pareto analysis, cause-and-effect diagrams, 5 Whys, and 5W-1H are used.
Do; the improvement plan is implemented once finalized.
Check; it is checked whether the targeted improvement has been achieved. * PDCA Cycle
Act; if the desired improvement has not been achieved, a new plan is made, and the cycle continues until the target improvement is achieved.
If the desired improvement is achieved, the application is standardized. (The existing standard is revised, or a new standard is created.) The new, more advanced standard now forms the new foundation for future improvements. Before PDCA, the existing standards must be applied consistently. Once stability is achieved, the PDCA cycle is used to elevate standards. Initially, there may be problems in implementing the set standards. During the process of addressing these issues and stabilizing the standards, the SAOC (Standardize, Apply, Check, Act) cycle is used. The SAOC cycle is used to stabilize standards, while the PDCA cycle is used to improve them.
Kaizen efforts are divided into two categories based on the complexity and size of the problem: • Before-After Kaizen • Focused Kaizen
These are improvement efforts for problems that are mostly suggested by employees, take a short time to complete, and are explained easily with before-and-after photos on a single-page form. They are completed in a short time. Before-After Kaizen:
• Increases morale and motivation, • Is easy for everyone to understand because it is not complex, • Encourages and facilitates participation, • Encourages employees to think, • Helps them work more intelligently, • Is a very beneficial tool that makes suggestion-making a habit.
Focused Kaizen efforts are improvement activities carried out by a team consisting of people from different departments aimed at finding the root cause of a problem, using problem-solving tools, and applying the PDCA cycle to address the company's objectives and needs. After verifying the accuracy of the improvement activities, they are standardized and disseminated.
Focused improvements are carried out in ten steps: Plan
Do
7. Implementation
Check
8. Verification Act
9. Standardization 10. Dissemination
DISSEMINATION
SPREADING KAIZEN:
Spreading Kaizen efforts is very important because Kaizen reaches its true potential when it is disseminated. Focused Kaizen is used for complex and large problems, so they take longer to complete. They are usually aimed to be completed within 1 to 2 months. In Focused Kaizen efforts, top and middle management:
• Select the topic • Appoint the team leader and members • Guide the team • Sponsor the team to help them when they get stuck.
The benefit of Kaizen is referred to as “savings.” The baseline period used to calculate the costs of Before-After and Focused Kaizen is generally one year. The total savings to be achieved are found by subtracting the Kaizen cost from the total savings amount expected to occur within one year. Teams present their Kaizen efforts to management and their colleagues. This not only informs many people about the work done but also boosts the motivation of the team members, who feel satisfied and appreciated by their managers.
PROBLEM-SOLVING
KAIZEN AND PROBLEM-SOLVING TOOLS:
Kaizen also links tools used to solve problems. The tools commonly used in problem-solving include:
For businesses operating in the manufacturing sector, the generally accepted losses are defined as the “16 major losses.”
Kaizen is based on the idea that these 16 losses must be improved in order to reduce costs, increase quality, and ensure timely shipments. These losses may vary depending on the business and may increase in number. Companies that have been applying the Kaizen program for a long time have increased the number of these losses to as many as 33. Additionally, over time, the Japanese have developed specific methods to reduce these losses. SMED is a method used to reduce setup and adjustment times, while PM Analysis and the Eight Lean Wastes are among the leading methods used to reduce breakdowns and defect rates. Every January, management shares with employees the Kaizen efforts they want to see carried out in line with the company's goals and needs for that year. In companies, in addition to Kaizen efforts targeting losses and waste, Kaizen efforts related to 5S, safety, health, environment, and ergonomics are also carried out. Management encourages Kaizen efforts on these topics and places more emphasis on their content than on their cost.
There is potential for improvement wherever there is a problem. However, most people lack the courage to admit it when faced with a problem. One of the worst things a person can do is ignore or cover up a problem. For most of us, admitting a problem means acknowledging a mistake and weakness. This situation is even more common in management positions. Employees, on the other hand, fear that their supervisor will be angry when an error occurs in the process, so they continue working, hoping the error will go unnoticed. Furthermore, the word problem has a negative connotation by definition. No one likes to talk about problems, and under no circumstances do they want to be involved in one. However, every problem can be turned into an opportunity. In this case, replacing the word "problem" with the phrase "opportunity for improvement" within the company will be perceived as a more positive situation among employees and will raise morale. Management should consistently tell employees that it is good and praiseworthy to speak up when they encounter a problem. It should always remind them that there can be no improvement where there are no problems.
Kaizen is teamwork. When a company succeeds in being a team with its employees, it can achieve outstanding results.
There are two ways to increase profit;
1. Increase sales 2. Reduce fixed and variable costs
Kaizen aims to increase profit by both increasing sales and reducing costs. It achieves this by improving all employees and processes.
Nothing and no situation is too perfect to be improved.