Page 306 - (DK) The Business Book
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304 KAIZEN
n Japan, kaizen is an ancient
IN CONTEXT idea that has become part of
I the culture. In its everyday
FOCUS
usage, the word means an
Improving efficiency
enhancement or a change for the
KEY DATES better. In a business context, Before you say you can’t
1882 Scottish shipbuilders kaizen is more of a philosophy; do something, try it.
William Denny and Brothers according to the kaizen way of Sakichi Toyoda
Ltd. becomes the first company thinking, companies should strive
to use a suggestion box to to increase efficiency through a
garner ideas from its work force. process of continuous improvement.
The majority of kaizen advances
1859 English naturalist are built around people and their
Charles Darwin publishes On ideas, rather than investment in
the Origin of the Species, and new machinery. Employees use
outlines his theory of evolution kaizen to produce hundreds of System (TPS). This system was
as a process of gradual changes. new ideas every year, aimed at designed to reduce muda—the
improving the efficiency of the Japanese word for waste. One of
1990 In “Re-engineering work:
business. In isolation, each kaizen the forms of muda identified by
don’t automate, obliterate” in
idea might only have a marginal Toyota was wasted employee
the Harvard Business Review, effect on productivity and general talent; Eiji Toyoda wanted more
MIT professor Michael Hammer efficiency, but together these from his work force than just blind
argues that to stay ahead, changes add up, creating a critical obedience and hard work. At Toyota
companies need to periodically competitive advantage. Ideas for employees were valued and
redesign production methods. continuous improvement should trusted—so much so that the
come from all quarters—from company expected their factory-
1997 Japanese founder of the
managers and employees alike. floor workers to fix problems
Kaizen Institute, Masaaki Imai,
associated with quality, and come
writes Gemba Kaizen, stressing
The Toyota Way up with ideas to improve efficiency.
that kaizen works best when
Kaizen was first deployed on an According to the Kaizen Institute,
factory-floor workers provide
industrial scale by car manufacturer founded by Masaaki Imai to
ideas for ongoing improvement.
Toyota in the 1950s, as part of the implement the philosophy, the goal
now famous Toyota Production of any kaizen plan should be to
Toyota the principles of kaizen. This,
along with its principles of
The Toyota Motor Company “customer first” and “quality
(TMC) was established in 1937. It first,” helped the company
produced several models of sedan thrive, and they began exporting
cars at its Honsha production plant their first cars to the US in 1957.
following business precepts set In 1962 management and
down by founder Sakichi Toyoda, unions signed a joint declaration
which included, “Always strive to stating that their relationship
build a homelike atmosphere at should be based on “mutual
work that is warm and friendly.” trust and respect.”
Following World War II, the By 1999 production in Japan
company faced a financial crisis had reached 100 million
and, for the first time in its history, vehicles. Today the company
had to layoff employees. In 1951, continues to be guided by the
Toyota implemented a creative twin pillars of continuous
ideas suggestion system based on improvement and teamwork.
