Vizione Family Magazine No.1

VIZIONE FAMILY
MAGAZINE

No. 1 / January – March 2018

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Kaizen – Small Improvements to Make a Big Impact

by Greg Yung

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Great Western Bank

Great Western Bank is a U.S. bank that has been around for
decades. According to ArgusLeader.com, opening a checking
account at Great Western used to take 34 steps. Thanks to Kaizen,
this has been reduced to 24. Great Western Bank uses Kaizen to
analyze its processes and provide a better service for their
customers. They have also been able to work on internal processes,
reducing the amount of money they spend on ordering office
supplies. Great Western Bank shows how Kaizen can be used to
improve internal as well as external processes.

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The Ford Motor Company

Toyota is probably best known for implementing the Kaizen
approach, but what you may not know is that Ford also uses
this philosophy. In 2006, Alan Mulally took over as the CEO
of Ford. Mulally was formerly the executive vice president at
Boeing and is familiar with the concepts behind Kaizen.
Under Mulally’s guidance, Ford focused on efficient
processes and was able to recover from rough times during
the Great Recession of the late 2000s to lead the company
back to success; in 2014, Ford announced that they would
be creating over 5,000 jobs in the United States.

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Herman Miller

Herman Miller is an American office furniture company
that is best known for producing the Aeron chair, one of
the most well-known task chairs in the entire world that
can be seen in movies, television shows, and commercial
offices everywhere. Business magazine Fast Company
reported back in 2012 that Herman Miller had adopted
Kaizen and enjoyed a resulting 500% increase in
productivity and 1,000% increase in quality since 1998.
Their Aeron chairs, which used to take 82 seconds to
come off the line, can now be produced in just 17
seconds. This example of Kaizen shows how the
principles can be applied to any type of product, from cars
to chairs.

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LOCKHEED MARTIN.

Lockheed Martin is an American global aerospace,
defense, security and advanced technologies company
with worldwide interests. It is headquartered in Bethesda,
Maryland, in the Washington, DC area. Lockheed Martin
employs 116,000 people worldwide. The company is
also known as a proponent of Kaizen. Most likely, no
one associates lean manufacturing with building
military aircraft. However, Lockheed Martin was selected
as one Industry Week’s “Top 10 Plants” in 1998.
Improvements from 1992 through 1997 included a 38
percent reduction in manufacturing costs, despite volume
reductions; 50 percent inventory reduction; a defect rate of
3.4 defects per plane; and reduction in order to delivery
time from 42 months to 21.5 months. Through the
application of kaizen methodologies to further implement
lean manufacturing, the plant was awarded the Shingo
Prize for Excellence in Manufacturing in 2000. During
this period, a kaizen project in material management
reduced the time to move parts from receiving to
stock from 30 days to four hours.

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The Gujarat Government

Gujarat is one of the most significant states in the country
of India, the world’s largest democracy. In late 2012, the
Kaizen Institute of India reported that the Education
Department of the Gujarat government commissioned two
weeks of Kaizen training for more than 80 employees, as
an attempt to improve the functionality of its public sector.
This is a great example of how Kaizen can help
government and municipal organizations, not just private
companies.

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TOYOTA.

Toyota Motor Corporation is a Japanese automotive
manufacturer with main headquarters in Toyota, Aichi,
Japan. Kiichiro Toyoda founded the company in 1937
and today is considered the 13th largest company in
the world by revenue. Kaizen and Toyota are names that
go together since the ideologies of constant improvement
are deeply ingrained into the fabric that makes up Toyota’s
principles and more specifically The Toyota Way, a set of
doctrines and behaviors that underlie the Toyota Motor
Corporation’s managerial approach and production
system.
The ideology of kaizen is an essential part of Toyota
and the Toyota Production System since kaizen in
itself means no process is perfect and understands
that there is always room for improvement, a thought
that resonates within Toyota and the way they operate
at all levels.

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NESTLE.

Nestlé S.A. is a Swiss transnational food and beverage
company headquartered in Vevey, Vaud, Switzerland. It is
the largest food company in the world measured by
revenues, and ranked #72 on the Fortune Global 500 in
2014. As lean production is paramount in Nestle’s
constant mission of reducing waste in all manners, so is
kaizen as a support of the idea of continuous
improvement. Kaizen as a concept in Nestle makes
sure that improvement is the responsibility of
everyone involved. The improvement of efficiency
becomes a constant process since kaizen implies that
even the smallest improvements should be made as
they can eventually lead to big savings. For example:
Nestlé Waters uses various techniques to see where the
current factory could be made more efficient, techniques
such as Value Stream Mapping (VSM) that illustrates the
flow of materials and information required to bring the
finished product to the consumer. A process like this helps
plant new bottling plants to ensure that their processes
are as efficient as possible.

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