Course Content
Probability Distributions
Probability Distribution – Binomial, Poisson, Normal, and Exponential
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Facility Location and Layout
Site Selection and Analysis, Layout Design and Process
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Quality Management
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Unit VIII: Business Statistics and Operations Management

KAIZEN: The Philosophy of Continuous Improvement

1. What is Kaizen?

Kaizen (改善) is a Japanese term that means “continuous improvement.” It is a philosophy that focuses on making small, incremental changes to processes, products, or services to enhance efficiency, productivity, and quality over time.

Kaizen is subtle, and its results are not always immediately visible. However, it is an ongoing process that involves everyone in an organization, from top management to frontline employees.


2. Core Principles of KAIZEN

The 5 Core Principles of Kaizen are:

  1. Know Your Customer – Focus on delivering value and quality to customers.

  2. Go to Gemba – Observe and understand work processes directly at the source.
  3. Let It Flow – Improve efficiency by streamlining processes and reducing waste.

  4. Empower People – Encourage employees to contribute ideas and take ownership of improvements.

  5. Be Transparent – Use data, visualization, and clear communication to track progress and ensure accountability.


3. Kaizen Process: The PDCA Cycle

Kaizen follows the PDCA (Plan-Do-Check-Act) cycle, also known as the Deming Cycle:

🔹 Plan – Identify a problem or area for improvement and develop a strategy.
🔹 Do – Implement the change on a small scale.
🔹 Check – Measure the effectiveness of the change.
🔹 Act – If successful, standardize the change and integrate it into regular operations.


4. Real-World Example: Toyota & Kaizen

Toyota applies Kaizen as part of its Toyota Production System (TPS). Employees at all levels suggest improvements daily, leading to:
✔ Faster assembly times
✔ Reduced defects
✔ Higher customer satisfaction


5. Kaizen vs. Other Improvement Methods

Approach Focus Key Feature
Kaizen Continuous improvement Small, incremental changes
Six Sigma Defect reduction Data-driven, statistical analysis
Lean Waste elimination Process efficiency
Total Quality Management (TQM) Customer satisfaction Organization-wide quality culture

 

Frame Works for Kaizen

In the ASTEM framework for evaluating improvements through Kaizen, the key factors are:

  1. A – Attitude : Change in the attitude of the Organization from a “Let It Go” to “Continuous Improvement”
  2. S – Safety : Ensuring workplace safety by minimizing hazards, preventing accidents, and creating a secure working environment.
  3. T – Productivity : Leveraging modern technology to enhance productivity, quality, and efficiency.
  4. E – Energy Saving :  Optimizing energy use for cost-effectiveness and sustainability
  5. M – Money Saving : Money saving is not the top priority in Kaizen, but it is a natural outcome of the continuous improvement process.

The above ordering should be followed where maximum importance is given to ‘change in attitude’ while only a reasonable focus is to be allotted for direct savings in terms of money.