Lean Production And Kaizen

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LEAN PRODUCTION – THE TOYOTA WAY

Lean production is an approach to production developed in Japan. Toyota, the Japanese car manufacturer was the company that invented lean production. The whole aim of lean production is to reduce the quantity of resources used up in production. By doing this, lean production uses less of - factory space, materials, stocks, suppliers, labour, capital and time. Lean production reduces costs, increases efficiency and output and improves motivation. Lean production involves using a range of practices designed to reduce waste and improve productivity and quality.

KAIZEN – CONTINUOUS IMPROVEMENT

Kaizen is the most important concept in Japanese management. It means continuous improvement in every aspect of life, including social life, working life and home life. A wide range of production techniques and working practices must be carried out for it to be effective. This approach argues that a day should not pass without some kind of improvement being made, no matter how small, and achieving the lean goal eliminating all waste that adds cost without adding value.

Kaizen teaches individual skills for working effectively in small groups, solving problems, documenting and improving processed, collecting and analyzing data, and self-managing within a peer group. It pushes the decision making down to the workers and requires open discussion and a group consensus before implementing any decisions.

Kaizen is a total philosophy that strives for perfection and sustains Toyota Production System on a daily basis.

Elimination of waste in business practices is an important part of Kaizen. Waste is any activity which raises costs without adding value to a product. Waste could be time wasted while staff waits before starting their tasks; time wasted when workers move unnecessarily in the workplace; the irregular use of a machine.

Firms that adopt Kaizen approach train and reward workers to continually search for waste and to suggest how it might be eliminated – the group consensus.

A great amount of attention is paid towards customers in Kaizen. The customer’s needs and requirements are vital.

By implementing Kaizen many firms were not made redundant by the decline of economies which may be due to institutional factors. It improves motivation because the importance of everyone buying into the concept and the vision. It is a whole business philosophy.

KANBAN – SIGNBOARD

Kanban is the Japanese word for the everyday term “signboard.” Kanban is a signalling system to trigger action. It was out of a need to maintain the level of improvements that the Kanban system was devised by Toyota.

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