Kaizen / KVP

Typical improvements achieved by a single Kaizen are:
Setup time reduction	70-90%
Productivity improvement	20-60%
Process time reduction	40-80%
Inventory reduction	30-70%
Walking distance reduction	40-90%
The typical budgets for these projects are 300-400$ plus labor.
	(Wiley, 1999, p.3,7)

 

	Kaizen
Purpose	- continues improvement of quality, service    and process
Occurs because	- it is systemic within the organization
Operates by	- incremental steps
Addresses	- existing products - existing systems and work processes
Achieves	- consolidation in existing markets - competitive advantage by product/service    improvement or by cost reduction
Requires	- attention to detail - problem solving - cross-functionality - gaining consensus
	Source: Kaizen strategies for successful organizational change

History of Kaizen

Since the definition of Kaizen is quite broad, there are several different

thoughts about the history of Kaizen. The most common version is that

it resulted from the competition between Nissan and Toyota.

The fact that Nissan won the Deming Price for quality in 1961 drove

Toyota even more aggressive in its approach to lean manufacturing.

Toyota therefore vowed that it, too, would win the Deming price. In

order to overcome certain quality issues Shigeo Shingo elaborated a

poke-yoke system. Based on the experience gathered during the

elaboration Tetsuichi Asaka and Kaomi Ishakawa developed the Toyota

Quality Circles in 1962. These Quality Circles were later called the first

real Kaizen event. In the same year Masaaki Imai founded the Kaizen

Institute, which promoted the Kaizen approach through the world.

Other theories about the origin of Kaizen are described in the paragraph

“Impact of cultural differences Japan, US, Europe” (Mika, 2000, p.5 )