Kaizen concept and its application in logistics

Abstract

Kaizen is a Japanese philosophy that focuses on continuous improvement, simplification and acceleration of processes, by reducing or eliminating waste and by spending a minimum of resources needed, while delivering the best possible quality products and services. It is a process that, when done correctly, humanizes the workplace, eliminates overly hard work and teaches people how to perform tests of their own work (using scientific methods) and eliminating scrap in the business process.

Many military organizations have recognized the benefits of Kaizen and implemented it into their practice. Kaizen is one of the most acceptable methods of continuous process improvement in logistics. It is cost effective and flexible and allows incremental process improvement. At the same time, it provides  logistics with quick, effective and efficient responses to any changes in its turbulent and complex environment.

Introduction

The introduction points out the importance of Kaizen as a world process aimed at eliminating all forms of waste and at efficient use of resources in manufacturing and service processes. It is both applicable in the economy and military organizations, in highly developed as well as developing countries. The aim of the article is to define an effective and efficient management approach to introducing the Kaizen process into  logistics.

Principles and basics of the Kaizen concept

A brief overview of the basic principles and basics of the Kaizen management is given as well as tools and techniques for its implementation. Figure 1 shows the given Kaizen approach to process improvement. Since Kaizen insists on improved standardization procedures, the most important point is the difference between the methodology of Kaizen and ISO 9000.^.

Methodology of the implementation of Kaizen in logistics

Since logistics is a large manufacturer, supplier and distributor of funds and a major consumer of financial resources, the article states the reasons for the need of implementation of Kaizen. Four types of Kaizen are possible to be implemented into  logistics..  Table 1   gives the complexity of the distribution of Kaizen. Since there is no universal methodology for the implementation of Kaizen,  Figure 2 gives a general map of the MEGA implementation process. The map shows the key processes (P) and input documents (UD) for the process implementation, resources (R) engaged in the implementation process and the output documents (ID) made (or updated) at the end of the process .

Value stream and waste in logistics

Value stream is a basic factor that must be considered when making a decision on the implementation of Kaizen. The ultimate goal of Kaizen is to eliminate any waste in a process or a work area; therefore, Table 2 lists seven basic types of waste in the logistic function of supply.

The organization and implementation of Kaizen events

The central part of the paper contains an analysis of implementing Kaizen principles and a methodology of the organization, implementation and monitoring of the implementation of Kaizen events. Specific guidelines for organizing and conducting Kaizen events are given. The scheduled time for a Kaizen event is shown in Figure 3. The main conclusion drawn is that there is no standardized, generic and universally applicable procedure, but only a framework for the implementation of the Kaizen program. The framework for the implementation involves several phases: from the identification of pre-conditions and priorities, through recording the current state and defining the future (target) one to its implementation in the strict sense, presentation and follow-up. Since waste elimination is in the focus of every Kaizen event, it is necessary to identify waste first.  Table 2 lists the seven basic types of waste in the logistic function of supply. In any process there is specific waste, so it is necessary to develop a detailed checklist  of waste, the form of which is shown in Table 3. It is particularly emphasized  that Kaizen is a continuous cycle that keeps repeating. In this way, Kaizen improvements become a part of everyday life, which is the main objective of implementing Kaizen in logistics.

Introducing Kaizen in local practice

The paper points to the fact that the Kaizen philosophy may be appropriate particularly in the economic environment in Serbia and in the material support to the Army, because no large financial investments are necessary. There are two preconditions for its implementation: changing habits and mindsets of employees and their mass involvement and training. Therefore, the task of  the organization   management to encourage employees to continually learn and improve themselves is stressed in particular.

Conclusion

It can be concluded that a special benefit of the application of Kaizen in the Army is the fact that it is not linked with large financial investments and sophisticated technologies, that its principles do not have to be applied at once, but can be introduced step by step thus initiating a process of improvement that is continuous and never ending, because a current situation can always be improved. The fact is that the application of Kaizen will not be easy. It will require time and patience, as well as continuous education and training of all the involved. It is emphasized that changes are ineffective if they do not affect more (if not all) segments of an organization. Therefore, it is essential that the principles and methods of the Kaizen concept be extended to the whole environment of logistics. The general conclusion is that a strategic decision to implement Kaizen would help it to become a business life style and corporate culture in logistic and the entire military organization.